Sectoral Performance During Week 21st February to 28th February, 2011

Sectoral Performance During Week 21st February to 28th February, 2011

Major Sectoral Gainers:
OIL & GAS 0.80%

Major Sectoral Losers:
FMCG -0.30%
CD -1.50%
IT -1.90%
REALTY -4.70%
BANKING -4.70%
AUTO -5.40%
CAPITAL GOODS -6.10%

Major Gainers on BSE:
NALCO 7.30%
CONTAINER CORP 4.30%
CAIRN INDIA 2.75%

Major Losers on BSE:
MPHASIS -35%
JET AIRWAYS -18%
PUNJ LLOYD -17.50%

Thank you,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt. Ltd.

Trend in Global Market during the Week 21st February to 28th February, 2011

Trend in Global Market during the Week 21st February to 28th February, 2011

CHINA -0.70%
UK -1.30%
BRAZIL -1.70%
SINGAPORE -2%
FRANCE -2.10%
US -2.10%
HONG KONG -2.50%
INDIA -2.80%
JAPAN -2.90%
GERMANY -3.30%

Thank you,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt. Ltd.

Markets Today - 28/02/2011 - Disclaimer Post Applies

In Today trading session, market rallied on back of long build which was reflected in open interest and Nifty trading at premium. On Option front, CE activity was more than PE by ~14 lakh shares. Major CE activity was seen at 5,600 and 5,700 which added fresh open interest of ~11 lakh and 5.1 lakh shares on the other side PE activity was more at 5,300 and 5,200. Currently, concentration of Call and Put observed at 5,500 and 5,300. So, we believe market to take strong support at 5,300  and would bounce back from there on. So, We would recommend traders to create fresh long position below 5,300 with target of 5,500.  

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 28^th February, 2011 close at 24.4 which is 10.5% lower as compared to previous close, after touching an intraday high of 27.9 and low of 22.4

Net FII Purchases & Sales During the Week 21st February to 25th February, 2011

FII Purchases/ Sales (Figures in Crore)

Purchases:
21/02/2011: 244.50
23/02/2011: 92.70

Sales:
22/02/2011: -38.70
24/02/2011: 13.70
25/02/2011: 2249.80

** Net Sales of FII during the week Rs. 1965 Crore.


Thank you,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt. Ltd.

Important US data releases for the week 28th Feb to 4th Mar 2011

Important US Data releases for the week 28th Feb to 4th Mar 2011

Monday
Personal Income and Outlays
Chicago PMI

Tuesday
Motors Vehicles Sales
ISM Manufactures Index
Construction Spending
Ben Bernanke Speaks

Wednesday
ADP Employment
Beige Book
Ben Bernanke Speaks
EIA Petroleum Status

Thursday
Chain Store Sales
Monster Employment Index
Jobless Claims
Productivity and Costs
EIA Natural Gas

Friday
Employment Situation
Factory Orders
Treasure STRIPS

Source: www.sharetipsinfo.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Positive's & Negative's of Budget 2011 - 2012

Positive from Budget 2011 - 2012

1. Senior Citizen Age Limit reduced from 65 years to 60 years for Income Tax purposes
2. The green orientation of the budget is a welcome positive
3. Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent
4. Direct investment in Indian Mutual Funds by any foreigner is a big move
5. MFs allowed to raise money from foreign investors is pathbreaking
6. Budget is positive for equity markets
7. Lower fiscal deficit target is commendable
8. No import duty on ship parts positive for SCI
9. Tax exemption limit for senior citizens raised to Rs 2.5 lakh from 2.4 lakh
10. Basic food and fuel and precious stones, gold and silver jewellery to be exempted from central excise duty
11. Nominal 1 per cent central excise duty on 130 items entering the tax net
12. LED to cost less
13. Government has cut many import duties to check inflation
14. No further rollback of 2008 stimulus
15. Direct cash subsidy for poor on fuel, fertilizers by March, 2012
16. Category for ‘very senior citizen’ positive for rich
17. Steel prices to come down
18. ICICI Direct: Unchanged excise is positive for auto, OEMs
19. FY 11 revenue deficit at 2.1%, sentiment positive says Nirmal Jain
20. Tax exemption limit for individuals increased from Rs 1.6 lakh to Rs 1.8 lakh
21. Exemption limit for women remains the same at Rs 2,40,000.
22. For senior citizens above 80, the tax exemption limit has been raised to Rs 500,000 (Super senior citizens)
23. For senior citizens, tax exemption limit increased to Rs 2,50,000 (Age 60+)
24. Priority home loan limit upped from Rs. 20 lakh to Rs. 25lakh

Negatives of the Budget 2011 – 2012

1. Health Check-Ups in Private hospitals to become expensive
2. EXPENSIVE: International Air Travel
3. EXPENSIVE: Domestic Air Travel
4. Tax on life insurance service providers could be negative for insurance companies
5. Travel, Healthcare to become expensive due to increased service tax
6. Lack of FDI in retail was a disappointment
7. New service tax to hurt companies in hospitality
8. Hike in export duty on Iron Ore is a negative
9. Air travel to cost more
10. Branded clothes may cost more
11. Rise in MAT to hurt RIL, GVK Power, telcos
12. FY 11 fiscal deficit above estimates, negative
13. Divestment but no privatization is timid
14. Doubled anganwaadi wages with a check on absenteeism not good.

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Investing Thumb Rules

1. The 10, 5, 3 Rule: This is a neat little rule that states that you can expect returns of 10% from equities, 5% from bonds and 3% on liquid cash and cash-like accounts.

2. The Emergency Fund Rule: Put away at least 3-6 months worth of expenses in a liquid savings account to ensure it is available at short notice.

3. 4% Withdrawal Rule: How much should I withdraw during retirement? We often use the 4% rule to protect principle and determine how much one can take from the retirement savings.

4. Rule of 72: This tells you in how much time will your money double. Divide 72 by the interest rate you are compounding your money with and you will arrive at the number of years it will take to double in value.

5. Rule of 70: This is a useful rule for predicting your future buying power. Divide 70 by the current inflation rate to know how fast will the value of your investment get reduced to half its present value. This is especially useful for retirement planning, as it affects the way you set up your monthly withdrawals. However, do remember that the inflation rate varies from time to time.

6. Pay Yourself First Rule: Right from your first salary, put away a little for your retirement. Experts say 10% of your income should go into this. It is important to increase the amount as your income rises over the years.

7. Rule of 114: Use this to estimate how long will it take to triple your money. It works the same way as the rule of 72. Divide 114 by the interest rate to know in how many years will Rs. 10,000 become Rs. 30,000.

8. 100 Minus Your Age Rule: This rule is used for asset allocation. Subtract your age from 100 to find how much your portfolio should be already located to equities.

9. Rule of 144: Similarly, this tells you in how much time will your investment quadruple in value. For instance, if the interest rate is 12%, Rs. 10,000 becomes Rs. 40,000 in 12 years.

Source: The Economic Times - Wealth.

Thank you,

Minita Aiya

Client Service Associate

DENIP Consultants Pvt. Ltd.

Smart Things to know about Monthly Income Plan (MIPs)

1. MIPs are schemes created by mutual funds that seek to generate regular income. There is no guaranteed rate of return.

2. MIPs invest primarily in debt instruments, but hold a small portion in equity (between 5 and 35%), to enable growth in investments.

3. Investors can choose from growth and dividend options in an MIP, depending on their need and tax status.

4. Investors choosing a growth option can redeem a part of their units regularly using a systematic withdrawal plan to generate regular income.

5. Withdrawals are subject to capital gains tax, but an investor who falls in the tax-free or low-tax category, can use it to reduce his tax outgo.

6. The dividend distributed by an MIP is tax-free in the hands of the investor, but is given after a dividend distribution tax has been paid directly by fund.

Source: The Economic Times - Wealth

Thank you,

Minita Aiya

Client Service Associate

DENIP Consultants Pvt. Ltd.

Union Budget 2011-12 Highlights

·         Critical institutional reforms set pace for double-digit growth

·         Scaled up flow of resources infuses dynamism in rural economy

·         GDP estimated to have grown at 8.6% in 2010-11

·         Exports grown by 9.6%, imports by 17.6% in April-January 2010-11 over corresponding period last year

·         Indian economy expected to grow at 9%  in 2011-12.

·         Five-fold strategy to deal with black money.   Group of Ministers to suggest ways for tackling corruption

·          Public Debt Management Agency of India Bill to come up next financial year

·         Direct Tax Code (DTC) to be effective from April 01, 2012

·         Phased move towards direct transfer cash subsidy to BPL people for better delivery of kerosene, LPG and fertilizer mooted

·         Rs.40,000 crore to be raised through disinvestment in 2011-12

·         FDI policy to be liberalized further

·         SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirement

·         FII limit for investment in corporate bonds in infrastructure sector raised

·         Additional banking license to private sector players proposed

·         Rs.6000 crore to be provided in 2011-12 for maintaining minimum Tier I Capital to Risk Weighted Asset Ratio (CRAR) of 8% in public sector banks

·         Rs.500 crore to be provided to regional rural banks to maintain 9% CRAR

·         India Microfinance Equity Fund of Rs.100 crore to be created by SIDBI

·         Rs. 500 crore Women SHG Development Fund to be created

·         Micro Small and Medium Enterprises  MSME gets boost as Rs. 5000 crore provided to SIDBI  and Rs.3000 crore to NABARD

·         Existing housing loan limit enhanced to Rs.25 lakh for dwelling units

·         Provision under Rural housing Fund enhanced to Rs.3000 crore

·         Allocation under Rashtirya Krishi Vikas yojna (RKVY) increased to Rs.7860 crore

·         Allocation of Rs.300 crore to promote 60000 pulses villages in rainfed areas

·         Rs. 300 crore vegetable initiative to achieve competitive prices

·         Rs.300 crore to promote higher production of nutri-cereals

·         Rs.300 crore to promote animal based protein

·         Rs.300 crore Accelerated Fodder Development Programme to benefit farmers in 25000 villages

·         Credit flow to farmers raised from Rs.3,75,000 crore to Rs.4,75,000 crore

·         Rs.10,000 crore for NABARD’s Short Term Rural Credit Fund for 2011-12

·         15 more mega food parks during 2011-12

·         National food security bill to be introduced this year

·         Capital investment in storage capacity to be eligible for viability gap funding

·          23.3% increase in allocation for infrastructure

·         Tax-free bonds of Rs.30,000 crore proposed by government undertakings

·         Environmental concerns relating to infrastructure projects to  be considered  by Group of Ministers

·         National Mission for Hybrid and Electric Vehicles to be launched

·         7 Mega clusters for leather products to be set up

·         Allocation for social sector increased by 17% amounting to 36.4% of total plan allocation

·         Bharat Nirman allocation increased by Rs.10,000 crore

·         Rural broadband connectivity to all 2.5 lakh panchayats in three years.

·         Bill to amend Indian Stamp Act to introduce.   Rs.300 crore scheme for modernization stamp and registration administration

·         Significant increase in remuneration of Angawadi workers  and helpers

·         Allocation for education increased by24%.  Rs.21,000 crore allocated for Sarv Shikshya Abhiyan registering an increase of 40%

·         1500 institute of higher learning to be  connected by March 2012 with Knowledge Knowledge Network.

·         National Innovation Council set up.   Additional Rs.500 crore for National Skill Development Fund

·         Plan allocation for health stepped up by20%

·         Indira Gandhi National Old Age Pension Scheme liberalized further

·         Rs.200 crore for Green India Mission

·         Rs.200 crore for cleaning of rivers

·         Rs.8000 crore provided for development needs of J&K

·         10 lakhs Aadhaar(UID)  numbers to be generated everyday from 1^st October

·         Fiscal deficit kept at 4.6% of GDP for 2011-12

·         Income Tax exemption limit for general category in individual tax payers enhanced from Rs.1,60,000 to Rs.1,80,000

·         Qualifying age for senior citizens lowered to 60; senior citizen above 80 year to get Rs.5,00,000 IT exemption

·         Surcharge on corporate lowered to 5%

Power Finance Corporation Ltd - 'LONG TERM INFRASTRUCTURE BONDS-Detai

THE ISSUE
The Company shall issue the Bonds in one or more tranche(s), on or prior to March 31, 2011, up to the amount of ` 5300 crore approved by the Board and, including oversubscription (as permitted under the SEBI Letter), subject to the total Issue size not exceeding 25% of the incremental infrastructure investment made by the Company in Fiscal 2010. The following is a summary of the terms of the Bonds. This section should be read in conjunction with, and is qualified in its entirety by, more detailed information in “Terms of the Issue” on page 200.

COMMON TERMS FOR ALL SERIES OF THE BONDS

Issuer: Power Finance Corporation Limited
Issue of Bonds: Public issue of ‘long term infrastructure bonds’ in the nature of secured, redeemable, nonconvertible debentures, of face value of ` 5000 each, having benefits
under section 80CCF of the Income Tax Act, up to '5300 crore in aggregate (subject to not exceeding 25% of the incremental infrastructure investment made by the Company in Fiscal 2010), to be issued at par on the terms contained in the Tranche prospectus.
Face Value Rs: 5000
Issue Price Rs: 5000
Minimum Application: One Bond and in multiples of one Bond thereafter.
Pay-in Date: Application Date (Full Application Amount is payable on Application)
Ratings: “AAA/Stable” from CRISIL and “LAAA with stable outlook” from ICRA
Listing: BSE
Debenture Trustee: GDA Trustee & Company Ltd
Depositories: Central Depository Services (India) Limited (“CDSL”) and National Securities Depository Limited (“NSDL”)
Registrar: Karvy Computershare Private Limited

Modes of Payment:
1. National Electronic Clearing Services (“NECS”)
2. At par cheques
3. Demand drafts
4. RTGS
5. NEFT
6. Direct Credit

Issuance: In dematerialized form and physical form
Lock-In Period: Five years from the Deemed Date of Allotment
Trading: In dematerialized form only following expiry of the Lockin Period
Issue Opening Date: February 24, 2011
Issue Closing Date: March 22, 2011, except that the Issue may close on such earlier date as may be decided by the Board. In the event of early closure of the Issue for any reason other than full subscription for the Bonds up to ` 5300 crores, the Company shall ensure that notice is provided to the prospective investors through newspaper advertisements at least three days prior to such earlier date of Issue closure.
Deemed Date of Allotment: The Deemed Date of Allotment shall be the date as may be determined by the Board of the Company and notified to the Designated Stock Exchange
Lead Managers: I-Sec, SBI Caps


SPECIFIC TERMS FOR EACH SERIES OF BONDS

IN TERMS OF THE NOTIFICATION, THE BONDS ARE CLASSIFIED AS ‘LONG TERM INFRASTRUCTURE BONDS’, HAVING BENEFITS UNDER SECTION 80CCF OF THE INCOME TAX ACT. IN ACCORDANCE WITH SECTION 80CCF OF THE INCOME TAX ACT, THE AMOUNT, NOT EXCEEDING ` 20,000, PAID OR DEPOSITED AS SUBSCRIPTION TO ‘LONGTERM INFRASTRUCTURE BONDS’ DURING THE PREVIOUS YEAR
RELEVANT TO THE ASSESSMENT YEAR BEGINNING APRIL 1, 2011 SHALL BE DEDUCTED IN COMPUTING THE TAXABLE INCOME OF A RESIDENT INDIVIDUAL OR HUF. IN THE EVENT THAT ANY APPLICANT APPLIES FOR THE BONDS IN EXCESS OF ` 20,000, THE AFORESTATED TAX BENEFIT SHALL BE AVAILABLE TO SUCH APPLICANT ONLY TO THE EXTENT OF ` 20,000.

ISSUE STRUCTURE
The Company shall issue the Bonds in one or more tranche(s), on or prior to March 31, 2011, up to the amount of ` 5300 crore approved by the Board, subject to the total Issue size not exceeding 25% of the incremental infrastructure investment made by the Company in Fiscal 2010. (incremental infrastructure investment to be defined as per notification)

Issue Structure

*The Bonds are classified as ‘long term infrastructure bonds’ and are being issued in terms of Section 80CCF of the Income Tax Act and the Notification. In accordance with Section 80CCF of the Income Tax Act, the amount, not exceeding ` 20,000, paid or deposited as subscription to ‘longterm infrastructure bonds’ during the previous year relevant to the assessment year beginning April 1, 2011 shall be deducted in computing the taxable income of a resident individual or HUF. In the event that any Applicant applies for and is Allotted Bonds in excess of ` 20,000 (including ‘long term infrastructure bonds’ issued by any other eligible entity), the aforestated tax benefit shall be available to such Applicant only to the extent of ` 20,000 for the Fiscal 2011.

Application Amount and Tax Savings
Eligible Applicants can apply for up to any amount of the Bonds across any of the Series(s) or a combination thereof. The Applicants will be allotted the Bonds in accordance with the Basis of Allotment. In the event any Applicant applies for and is allotted Bonds in excess of Rs. 20,000 (including ‘long term infrastructure bonds’ issued by any other eligible entity), the aforestated tax benefit shall be available to such Bondholder only to the extent of Rs. 20,000.

Interest on application money
The Company shall pay interest on refund of Application Amount on the amount not Allotted, at the rate of 4.00% p.a. on the amount not Allotted, three days from the date of receipt of the Application Form, or the date of realization of the Application Amount, whichever is later, upto one day prior to the Deemed Date of Allotment, subject to deductions under the Income Tax Act, if the amount of such interest exceeds the prescribed limit of ` 2,500. Interest on refund shall be paid along with the refund money. Payment of interest on refund of Application Amount is not applicable in case of applications rejected on technical grounds or withdrawn by the Applicants.

TDS on Interest
As per clause (ix) of Section 193 of the Income Tax Act, no income tax is required to be withheld on any interest payable on any security issued by a company, where such security is in dematerialized form and is listed on a recognised stock exchange in India in accordance with the Securities Contracts Regulation Act, 1956, as amended, and the rules notified thereunder. Accordingly, no income tax will be deducted at source from the interest on Bonds held in dematerialised form. In case of Bonds held in physical form no tax may be withheld in case the interest does not exceed Rs. 2,500. However, such interest is taxable income in the hands of Bondholders\ Senior citizens, who are 65 or more years of age at any time during the financial year, can submit a self-declaration in the prescribed Form 15H for non-deduction of tax at source in accordance with the provisions of section 197A even if the aggregate income credited or paid or likely to be credited or paid exceeds the maximum limit for the financial year. To ensure non-deduction/lower deduction of tax at source from interest on Bonds, a resident Bondholder is required to submit Form 15G/15H/certificate under section 197 of the Income Tax Act or other evidence, as may be applicable, with the Application Form, or send to the Registrar to the Issue along with a copy of the Application Form on or before the closure of the Issue. Subsequently, Form 15G/15H/ original certificate issued under section 197 of the Income Tax Act or other evidence, as may be applicable, may be submitted to the Company or to such person at such address as may be notified by us from time to time, quoting the name of the sole or first Bondholder, Bondholder number and the distinctive number(s) of the Bond(s) held, at least one month prior to the interest payment date.

Lien on Pledge of Bonds
Subject to applicable laws, the Company, at its discretion, may note a lien on pledge of Bonds if such pledge of Bond is accepted by any bank or institution for any loan provided to the Bondholder against pledge of such Bonds as part of the funding.

WHO CAN APPLY
The following categories of persons are eligible to apply in the Issue:
Indian nationals resident in India who are not minors in single or joint names (not more than three); and Hindu Undivided Families or HUFs, in the individual name of the Karta. The Applicant should specify that the Application is being made in the name of the HUF in the Application Form as follows: “Name of Sole or First Applicant: XYZ Hindu Undivided Family applying through XYZ, where XYZ is the name of the Karta”. Applications by HUFs would be considered at par with those from individuals.

Applications for Allotment of Bonds in the physical form
Applicant(s) who wish to subscribe to, or hold, the Bonds in physical form can do so in terms of Section 8(1) of the Depositories Act and the Company is obligated to fulfill such request of the Applicant(s). Accordingly, any Applicant who wishes to subscribe to the Bonds in physical form shall undertake the following steps:

Please provide the following documents along with the Application Form:
(a) Self-attested copy of the PAN card;
(b) Self-attested copy of the proof of residence. Any of the following documents shall be considered as a verifiable proof of residence:

ration card issued by the GoI; or 
valid driving license issued by any transport authority of the Republic of India;
or
electricity bill (not older than three months); or
landline telephone bill (not older than three months); or
valid passport issued by the GoI; or
Voter’s Identity Card issued by the GoI; or
passbook or latest bank statement issued by a bank operating in India; or
leave and license agreement or agreement for sale or rent agreement or flat
maintenance bill;
(c) Self-attested copy of a cancelled cheque of the bank account to which the
amounts pertaining to payment of refunds, interest and redemption, as
applicable, should be credited.

WHO CANNOT APPLY
Non-resident investors including NRIs, FIIs and OCBs

Multiple Applications:
An Applicant may make multiple applications for the total number of Bonds required.

Payment Mode
The cheque/DDs should be drawn in favour of “PFC Infra Bond Public Issue A/c”.

Thanks,

Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd

Weekly Market Update from 21st Feb to 25th Feb 2011

Source: www.iseindia.com

Thanks,

Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd

MphasiS Q1 cons net profit down 15% at Rs 227 cr

MphasiS has declared its first quarter results. The company's consolidated net profit was down 15% at Rs 227 crore versus Rs 268 crore.

Its consolidated revenues were up 3% at Rs 1230 crore versus Rs 1190 crore.

Source: http://www.moneycontrol.com/

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Strides Arcolab CY10 net profit up at Rs 122.4 cr

Strides Arcolab has reported a consolidated net profit of Rs 122.4 crore for the year ended 2010 as against Rs 109.7 crore in previous year.

Consolidated net sales jumped to Rs 1,695.8 crore from Rs 1,304.8 crore (YoY).

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Claris Life CY10 net profit up at Rs 141 cr

Claris Lifesciences has reported a consolidated net profit of Rs 141 crore for the year ended 2010 as against Rs 130 crore in previous year.

Consolidated net sales increased to Rs 752 crore from Rs 744 crore.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Markets Today - 26/02/2011 - Disclaimer Post Applies

March series has started with positive momentum on back of short covering and fresh buying interest seen in counters like Banking, Financial and Infra sectors. On Stock specific front, heavy weight counters like IDFC, ICICI, AXIS and TATA Motors witnessed huge buying interest. On Option front, 5,000 to 5,300 PE witnessed fresh writing and 5,300 to 5,500 CE witnessed fresh build of open interest. Concentration of PE and CE is being observed at 5,300 and 5,500 strike price. Market on Budget day is going to be very choppy and would be trading in a range of 5,300 and 5,500.

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 25^th March, 2011 close at 27.8 which is 3.3% lower as compared to previous close, after touching an intraday high of 29.1 and low of 27.2

IDFC INFRA BONDS - Tranche 3 - Details

Issue Amount - Rs. 2172 crore

Issue Opening Date - February 28, 2011

Issue Closing Date - March 16, 2011

Coupon - 8.25%p.a.; with Series 1, being coupon bearing and series 2, the cumulative option.

Lead Managers - JM Financial, Enam, ICICI Securities, Karvy Capital and IDFC Capital

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

NFO Launch : Kotak Gold Fund

The New Fund Offer of the scheme opens on March 04, 2011 (Friday) and closes on March 18, 2011 (Friday).

MINIMUM INVESTMENT during NFO:
Non SIP : Rs.5000/- and in multiples of Rs 1 for purchases and for Re 0.01 for switches
SIP : Rs.1000 (subject to minimum of 6 installments of Rs.1000/- each)

Scheme Type :
An open ended Fund of Funds Scheme.

OPTIONS:
Growth & Dividend (Payout & Reinvestment).

INVESTMENT OBJECTIVE:
The investment objective of the scheme is to generate returns by investing in units of Kotak Gold Exchange Traded Fund.

BENCHMARK:
The Scheme's performance will be benchmarked against the price of physical gold.

LIQUIDITY:
Open-ended. Purchases and redemptions at prices related to applicable NAV, on each business day.

LOAD:
Entry Load : NIL

Exit Load : 2% if redeemed/switch- out within 6 months from date of allotment.
1% if redeemed/switch- out after 6 months and before 1 year from the date of allotment
Nil if redeemed/switch-out after 1 year from the date of allotment.

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Railway Budget 2011-12: The highlights

Railway Budget 2011-12: The highlights

1 Got 85 proposals for PPP
2 High demand for coach, wagons can't be met immediately
3 To set-up single window for PPP approval
4 To set-up rail-based industries for passenger coaches
5 Giving economic share to industrials to invest in rail
6 Some rolling stock materials not available
7 Have to depend on imports for rolling stock material
8 To set up coach factory in Palaghat
9 To set up metro coach factory in Singur
10 To set-up diesel locomotive centre in Manipur
11 Imphal to be connected with rail network soon
12 To set up new coach factory at Kolar via PPP or JV
13 To set up two more wagon units under JV mode
14 To set up two more wagon units in Kerala
15 To set up rail industrial park at new Bongaigaon, Nandigram
16 To set up 700 MW gas-based power plant in Maharashtra
17 Planning 1320 MW thermal power plant in Agra
18 To set up 1300 MW thermal power plant in AP
19 Aiming 700 km of annual rail line addition as compared to the current 150 kms
20 Working on 1000 MW captive power plant in Bihar
21 To build new rail line capacity of 700km versus 180km a year
22 To raise Rs 10,000 crore via tax free bonds
23 Annual plan for FY12 at Rs 57,630 crore
24 Annual gross budgetary support at Rs 20,000 crore
25 Market borrowing at Rs 20,594 crore
26 Rs 13,824 crore for acquisition of rolling stock
27 Doubling spend on gauge conversion to Rs 2,470 crore
28 To spend Rs 9,583 crore for new line in FY12
29 To create fund to implement socially desirable plans
30 Railways earnings likely to exceed Rs 1 lakh crore
31 Three railway zones to implement anti-collision devices
32 To construct 172 rail over bridges in FY12
33 To do away with all unmanned rail crossings in FY12
34 Started e-procurement system to ensure transparency
35 Saved Rs 300 crore on rail re-alignment
36 To give 12,000 acre for dedicated freight corridor
37 442 station up-gradation to be completed by March
38 To cut booking charge on AC to Rs 10 versus Rs 20
39 Freight loading aim at 993 million tonne in FY12
40 Wagon procurement target at 18,000 units in FY12
41 To launch nine new Duranto, three Shatabdi trains
42 To introduce 56 new express trains
43 Frequency of 17 trains to be increased
44 To fill up 13,000 RPF jobs
45 FY12 operating ratio pegged at 91.1%
46 Lost Rs 2,000 crore in FY11 on iron ore export curbs
47 Disruption cost Rs 1,500 crore loss in FY11
48 Railways saved Rs 3,700 crore due to austerity steps
49 Operating ratio excluding pay panel arrears at 84% now
50 Double-stack container train from Gujarat to Gurgaon
51 Railway earnings set to top Rs 1 lakh crore mark in FY12
52 Expect railways financial health to revive in FY12
53 To see Rs 5,260 crore savings in FY12
54 See Rs 5,258 crore excess funds with railways in FY12
55 Freight target reduced by 20 million tonne to 924 million tonne
56 To complete 1,075 km new rail lines in FY12
57 Aim to complete dedicated freight corridor by December 2016
58 Concession for women senior citizen cut to 58 years versus 60 years
59 To double-line 867 km of rail tracks in FY12
60 To up capacity of 107 Mumbai local trains

Source; www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Markets Today - 23/02/2011 - Disclaimer Post Applies

Selling pressure in the Indian markets continued for the second straight trading session on Wednesday, with the NSE Nifty ending below the 5450 level. Index heavyweights like SBI, DLF, Wipro and Infosys were among the major laggards. Even the Mid‐Cap and the Small‐Cap index witnessed some offloading. Bucking the negative trend were select Oil & Gas and Auto stocks. Concentration of PE and CE is being observed at 5,400 and 5,600 strike price. We believe market not to go below 5,400 because of concentration level, So an traders should reverse their position at 5,400 and go long on market with target of 5,600. Technically, market managed to close away from the day’s low even though in red. But the outlook seems to be weak and it is having support at 5436 and 5420 while the resistance still is at 5500 and 5535 levels.   

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 23^rd February, 2011 close at 26.6 which is 1.1% lower as compared to previous close, after touching an intraday high of 27.2 and low of 26.2

SBI plans merger of 5 associate banks in next 12-18 months

Country's largest lender State Bank of India (SBI) plans consolidation of remaining five associate banks with itself in the next 12-18 months.

"The bank (SBI) envisages consolidation of all subsidiary banks with SBI within a period of 12 to 18 months," Finance Ministry informed the Standing Committee on Finance.

This was in response to a query on the stance of the government on merging the subsidiaries with SBI raised by the Parliamentary panel headed by former Finance Minister Yashwant Sinha.

In the submission to the panel, SBI Chairman O P Bhatt said "there are five banks remaining. We have representations from various associations, leaders etc from these five banks which want these banks also to be merged with the State Bank of India simply because it is primarily good for the employees in multiple ways".

Source: http://www.moneycontrol.com/

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Gaurav Agarwal
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DENIP Consultants Pvt Ltd

Bata CY10 net profit up at Rs 88.3 cr

Bata has reported a consolidated net profit of Rs 88.3 crore for the year ended 2010 as against Rs 62.6 crore in previous year.

Consolidated net sales jumped to Rs 1,273.9 crore from Rs 1,090.2 crore (YoY).

Source: www.moneycontrol.com

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Gaurav Agarwal
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DENIP Consultants Pvt Ltd

Gujarat Pipavav Q3 net profit at Rs 11 cr

Gujarat Pipavav has reported a net profit of Rs 11 crore as against loss of Rs 35 crore on year-on-year basis.

Net sales increased to Rs 79.5 crore from Rs 64.1 crore.

Source: www.moneycontrol.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

The food processing sector attracted Rs 576 crore of foreign direct investment (FDI) in the first eight months of the fiscal as compared to total FDI

ABB has reported a net profit of Rs 6.8 crore for the quarter ended December 2010, down 94% as compared to Rs 110 crore in same quarter the previous year.

It has posted a forex loss of Rs 21.7 crore versus gain of Rs 1.04 crore on year-on-year basis.

Net sales increased to Rs 2,050 crore from Rs 1,890 crore (YoY).

ABB has won orders worth Rs 1,394 crore as against Rs 2,377 crore (YoY).

Source: http://www.moneycontrol.com/

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Food processing sector gets 576-crore FDI

The food processing sector attracted Rs 576 crore of foreign direct investment (FDI) in the first eight months of the fiscal as compared to total FDI of Rs 5,344.22 crore, minister of state for food processing industries Harish Rawat told the Lok Sabha on Tuesday.

In the thick of the recent food inflation, the government had also widened the scope of service tax exemption to include foodgrains and pulses in addition to fruits, vegetable, eggs and milk, the minister said. The Centre is keen on projecting FDI in the food processing industries, where 100% FDI is already allowed.

Besides attracting FDI through schemes like mega food park, the government has also extended several fiscal incentives during this financial year to enhance FDI in food processing sector, including full exemption from excise duty for specified equipments to preserve, store or transport apiary , horticultural, dairy, poultry, aquatic and marine produce and meat and its processing products.

Project imports status, with concessional rate of basic customs duty of 5%, has been granted for the initial setting up or substantial expansion of a cold storage , cold room (including farm pre-coolers ) for preservation or storage or an industrial unit for processing of agricultural, apiary, horticultural, dairy, poultry, aquatic and marine produce and meat.

While truck refrigeration units manufacturing refrigerated vans/trucks have been fully exempted from basic customs duty, exemption from service tax has been provided to a host of services. These include ‘erection, commission or installation’ of mechanised foodgrains handling equipment for setting up or substantial expansion of cold storage and machinery/equipment for initial setting up or substantial expansion of units for processing of agricultural, dairy, poultry , aquatic, marine or meat products.

Source: www.ibef.org

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

India-Asean trade may jump to $70 bn in 3 years

India- Asean bilateral trade could jump to $70 billion in three years as the two sides take advantage of the free trade agreement signed last year that will eliminate tariffs on 4,000 products over six years.

Two-way trade has already increased by 25% in 2010 to $50 billion from $40 billion in 2009 with both sides witnessing higher exports. India’s exports to the region went up to $22.3 billion from $17.3 billion, while imports increased to $27.8 billion from $23.8 billion.

“The growth in India’s exports have been sharper than the growth in its imports ,” said commerce joint secretary Sumanta Choudhuri at a press conference announcing the fiveday India-Asean fair and business conclave being jointly organised by the ministry with Ficci.

The fair, starting on March 2, will be attended by foreign trade ministers of all 10 Asean countries and have more than 500 business participants.

Source: http://www.ibef.org/

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

India-Korea trade will touch $24 b in 5 years, says Sharma

The Commerce and Industry Minister, Mr Anand Sharma, said on Tuesday that India-Korea trade could touch around $24 billion in the next five years from nearly $12 billion in 2009-10.

Stating this after a meeting here with Mr Park Young June, the Vice-Minister of Knowledge Economy of South Korea, Mr Sharma said bilateral trade between the two countries has gathered momentum during the last few years. He pointed out bilateral trade was only $1.6 billion in 2001-02.

The trade balance has been in Korea's favour with India's exports to Korea in 2009-10 worth only $3.4 billion, while Korea's exports to India were worth $8.6 billion.

Mr Sharma said both the countries held the first meeting at the Ministerial level last month to review the implementation of the Comprehensive Economic Partnership Agreement (CEPA).

He said after the India-Korea CEPA came into force, bilateral trade has increased by over 40 per cent as compared to the previous year.

He added that the CEPA was an important milestone in the bilateral trade and economic Relations.

“The CEPA will create business opportunities for Korean companies and would simultaneously provide opportunities to Indian professionals from the software, engineering, finance and telecommunication sectors to participate and contribute to Korea's services sector. We look forward to opening of the IT-enabled services market in Korea for our reputed IT companies,” Mr Sharma said.

Meanwhile, according to Mr June, bilateral trade has jumped to $10.7 billion in 2010 (calender year) after CEPA came into force in January 2010. He said at a Ficci function that the agreement, which liberalised bilateral trade in goods and services as well as investments, has helped around 480 Korean firms, including Hyundai and Samsung operating in India.

According to Great Eastern Energy Corp's Chairman and CEO, Mr Yogendra Modi, bilateral trade has the potential to touch $100 billion by 2020.

The major items of India's exports to Korea are cotton yarn, fabrics, made-ups, gems and jewellery, machinery and instruments, ferro-alloys and chemicals, while the major items of India's imports from Korea are iron and steel, electronic goods, transport equipment, project goods and organic chemicals.

The total foreign direct investment (FDI) inflows received from South Korea were $523.88 million. The main sectors that have attracted FDI inflows were in real estate, power, semi-finished iron and steel products and telecom.

During the interaction, Mr Sharma said India and Korea share the view that a strong multilateral trading system was vital for growth in the world economy.

Both countries are committed to continue their cooperation to achieve an ambitious and balanced outcome of the Doha Development Round as early as possible.

Source: www.ibef.org

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Libya crisis: UN security council to meet over Gaddafi crackdown

The United Nations security council is to meet in closed session to discuss Muammar Gaddafi's brutal crackdown in Libya amid fears of a bloodbath following the dictator's appearance on state TV to deny he had fled the country.

Libya's deputy ambassador to the UN, Ibrahim al-Dabashi appealed for international intervention, starting with a no-fly zone over the country, to help stop "a real genocide".

Runways at Benghazi airport are reported by Egyptian authorities to have been destroyed in the violence. The country's second city has been the scene of alleged massacres in recent days. The death toll in Libya passed 250 on Monday after six days of unrest, but this is a conservative estimate. The International Federation of Human Rights estimated the death toll at 300 to 400.

Parts of Tripoli were attacked by fighter jets and helicopter gunships overnight. Twenty-six people also died in the eastern city of Al Bayda as it came under fire from forces using aircraft and tanks, according to one eyewitness report.

As both British Airways and bmi cancelled flights from Heathrow to Tripoli, and the Arab carrier Emirates also suspended its services in and out of the capital, the Foreign Office in London was reviewing its advice to Britons without "pressing need to remain" to leave by commercial means, if it is safe to do so. During the protests in Egypt, the UK laid on a charter flight.

"We are monitoring the situation closely. The safety and security of British nationals are our top priority", said a spokeswomanGaddafi appeared briefly on Libyan state TV to deny reports that he had fled the country. "I want to show that I'm in Tripoli and not in Venezuela. Do not believe the channels belonging to stray dogs," he said, holding an umbrella in the rain and leaning out of a vehicle. The station said he was speaking outside his house.

As his forces launched air attacks against protesters amid apparent confirmation of claims that African mercenaries were being used to quell the violence, the UN secretary general, Ban Ki-Moon, condemned the "very disturbing and shocking scenes". He said he had spoken to Gaddafi and "forcefully urged him to stop violence against demonstrators." He told reporters: "This is unacceptable. This must stop immediately. This is a serious violation of international humanitarian law."

The Arab League is also to hold an emergency meeting in Cairo. At least seven Libyan ambassadors have resigned in protest at the killing, although other senior diplomats remained in post while appealing for Gaddafi to step down.

In New York, Dabashi said there must be a no-fly zone "on the cities of Libya so no mercenaries, no supplies of arms will arrive to the regime". He told a press conference he and other UN diplomats were not resigning because they served the people of Libya, not the regime.

"This is in fact a declaration of war against the Libyan people," he told reporters, surrounded by a dozen Libyan diplomats. "The regime of Gaddafi has already started the genocide against the Libyan people."

Libya's ambassador to the United States, Ali Aujali, called for Gaddafi to step down. "There's no other solution. He should step down and give the chance for the people to make their future," he told Associated Press. "How can I support the government killing our people? … What I have seen in front of my eyes now is not acceptable at all."

Aujali said he was not resigning his post, because he was on the "good side" of the Libyan government and not part of the killing. "There are many people working very hard to make things work in the right way but, unfortunately, we don't have enough power that we can change everything going on in Libya," he said.

Libya's ambassador at the UN, Abdurrahman Mohamed Shalgham, told the pan-Arab newspaper, al-Hayat, that all diplomats at Libya's mission supported Dabashi, "excluding me". Shalgham said he was in touch with the Gaddafi government and was trying "to persuade them to stop these acts".

The country's ambassador to India, who resigned over the crackdown, said African mercenaries were being employed by Gaddafi. "They are from Africa, and speak French and other languages," Ali al-Essawi told Reuters, adding he had been told there had been army defections.

"They [the troops] are Libyans and they cannot see foreigners killing Libyans so they moved beside the people."

In Al Bayda, resident Marai Al Mahry told Reuters by telephone that 26 people, including his brother Ahmed, had been shot dead overnight by Gaddafi loyalists. "They shoot you just for walking on the street," he said.

"The only thing we can do now is not give up: no surrender, no going back. We will die anyway, whether we like it or not. It is clear that they don't care whether we live or not."

Source: www.guardian.co.uk

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Oil eyes $100 as Libya crisis threatens crude supplies

World oil prices advanced towards fresh highs in Asian trade Wednesday after violent protests in major producer Libya threatened to disrupt crude supplies.

Light sweet crude for April delivery was seen trading at $95.81 a barrel at 12.30 p.m Singapore time while london’s Brent crude was at $106.48 an ounce.

In other Nymex trading in March contracts, heating oil rose 0.4 cent to $2.80 a gallon and gasoline gained 2.5 cents to $2.63 a gallon. Natural gas futures were up 2.5 cents at $3.89 per 1,000 cubic feet.

Analysts said the black gold may even hit $100 a barrel mark if the situation remains as they said investors are worried that unrest in Libya and other oil producing nations could cut energy supplies, and they are sharply bidding up the price of crude oil.

Libya holds Africa's largest oil reserves and is the continent's fourth largest producer and is an OPEC member, the cartel that produces about 40 percent of global supplies.

Analysts say higher oil prices could slow economic growth just as the world is recovering from the worst recession in decades.

Source: www.commodityonline.com

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Gaurav Agarwal
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DENIPConsultants Pvt Ltd

Anil Ambani meets Maharashtra CM

Anil Ambani met Maharashtra Chief Minister Prithviraj Chavan in the backdrop of reports that the Maharashtra State Road Development Corporation (MSRDC) was mulling a coastal road from Worli to Haji Ali and from Haji Ali to Nariman Point.

The meeting assumes significance as a consortium between Ambani-led Reliance and Korea's Hyundai last year won the Rs 5,000 crore contract to extend the Bandra-Worli Sealink till Haji Ali.

The consortium was unable to tie up funds by the December, 2010, deadline and sought a three-month extension for the same.

The coastal road option is being discussed to save cost.

MSRDC sources say the coastal road option will help save the government over Rs 3,000crore.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd