FMP and Interval calendar for the Month of October 2011

FMP and Interval calendar for the Month of October 2011

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BEML pays Rs 22.50cr dividend to government

BEML Ltd, a public sector company under the Defence Ministry, today paid a dividend of Rs 22.50 crore to the government for the financial year 2010-11.

The company's Chairman and Managing Director V R S Natarajan presented the cheque for Rs 22.50 crore to the Defence Minister A K Antony today at New Delhi as dividend for 54.03% of company's shares held by the government of India, a BEML statement here said.

Secretary (Defence Production) Shekhar Agarwal, Jt Secretary (LS) Rashmi Verma, Ministry of Defence Additional Financial Advisor S C Pandey were also present.

BEML is expected to reach a sales target of Rs 4,200 crore for financial year 2011-12. The pending Order Book position is expected to cross Rs 5,000 crore by the end of the current financial year for execution during 2011-12, and beyond, it added.

Source: www.moneycontrol.com

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German Parliament clears bailout fund expansion plan

Germany's parliament has approved reforms to the European Financial Stability Facility (EFSF) that would allow the fund to participate in the primary market and to recapitalize European banks in a much-anticipated vote in the Bundestag.

The vote in the Bundestag, which was set to be another milestone – and another drama in the travelling circus of Europe's crisis response – seems to have passed without major incident, as potential rebels within Chancellor Angela Merkel's ruling coalition were contained. 523 lawmakers voted in favor of the reform, with 85 opposing and three abstaining.

European stocks rose, and bund yields fell as the markets reacted positively to the result. The euro [EUR=X 1.362 0.0092 (+0.68%) ] rose against the dollar.

However, the debate on crisis management mechanisms is moving ahead of the politics once again, as the realization that solvency and growth concerns outweigh liquidity shortages begin to creep through.

Early concerns that euro zone parliaments would derail reforms allowing the EFSF - the temporary bailout fund created to shore up the Greek capital markets and limit contagion into the rest of the single currency area – to participate in the primary market for sovereign debt and to recapitalize banks now appear unfounded.

Finland, whose politicians have been amongst the most vocally critical participants in the conversation on financial assistance and institutional reform in Europe, voted on Wednesday to pass the reform of the EFSF, despite their desires for collateral looking decreasingly likely to be met.

Slovenia, whose government collapsed on September 20, saw the reform sail through parliament on September 27.

Austria, which votes on Friday, should also pass the reform, analysts said, with the government and opposition Green party both backing the bill.

Slovakia is perhaps the only remaining real barrier for Europe, as with Radicova saying that she wants a vote before the October 17 EU summit, while the speaker of parliament, Richard Sulik, reportedly told news agency Agence France Presse that a date had been set for October 25.

The German vote was not expected to be a complete formality, but tensions eased as the decision approached and the two-hour debate was shot through with vocal support for the European Union and Germany's role in solving the crisis.

If more than 19 members of Chancellor Angela Merkel's coalition voted against the measure then she would have needed to rely on support from opposition parties. Any such mutiny would have seriously undermined confidence in her leadership, but most of those opposing the vote appear to have been from the opposition, and Merkel's own majority has held.

The Free Democratic Party (FDP), a junior member of Merkel's coalition, had threatened to vote against the EFSF reform, according to local press reports. There was also a distinct possibility that individuals within her own Christian Democratic Union party (CDU) could oppose the measures.

"The question is not whether it will or won't go through, the question is what concessions Merkel has to make to the FDP and other members of the opposition, even the CDU, to get it through," Mutjaba Rahman, Europe analyst at Eurasia Group, told CNBC.com ahead of the vote.

"Some of those concessions I think have the potential to undermine the efficacy of the July 21 reforms. I think if you have greater budget committee oversight of secondary market bond purchases, for example, that could undermine the efficacy of the bond buying," he said.

To an extent, the debate over the scale of the EFSF has moved on from the reforms currently under scrutiny. Some market participants have been adamant that the 440 billion euro fund is nowhere near large enough

Suggestions that 2 trillion euros would be the minimum amount that would satisfy the market miss the point, Rahman said. The headline scale of the EFSF is less significant than the flexibility that the fund has been given to recapitalize European banks, and to buy bonds in the primary market, he explained.

"I don't think it's about the headline. I think the point is, you want an ambiguous 'bazooka'. You don't want to say 1.5 trillion, or 2 trillion, or 3 trillion, because then the market is likely to challenge the headline. The reason the ECB's SMP is so powerful is because there is a huge liquid balance sheet behind it and there is no headline constraint," Rahman said, referring to the Securities Markets Program, which buys bonds on the secondary market.

"The debate on the headline, the actual nominal number, that's a secondary discussion. What we need is a highly leveraged vehicle with access to resources that can manage systemic risk in larger, systemically important countries – Italy, Spain, France," Rahman added.

"The TARP had headline constraints but only a part of the nominal number was used in interventions because the markets believed that it had the ability to manage contagion risk in a credible way," he said, referring to the US' Troubled Assets Relief Program.

Until that vehicle is ready, however, the pressure will be on the European Central Bank to shore up the Spanish and Italian bond markets. Even once it is complete, it is only one step in containing a crisis that has deeper roots than the bond markets.

Carl Astorri, global head of economics and asset strategy at Coutts told CNBC that such an intervention would come at a price.

“To satisfy markets a large balance sheet needs to be put on the line. In reality only the ECB and the German government have balance sheets large enough to shock the bond market and protect Italy from contagion," Astorri said.

“However, protection is never free. The price will be a deterioration in Germany's credit quality. Hence, a clear sign that a euro zone rescue package is succeeding will be a rise in German bund yields relative to those of Italian government bonds. In other words, a spread narrowing.”

Ernst & Young released its euro zone economic forecast on Thursday, giving a stark assessment of the challenges facing the single currency area. The report cut its growth forecast for 2011 from 2 percent to 1.6 percent, and reduced its 2012 prediction to 1.1 percent. There is a 35 percent chance that the euro zone could be pulled back into recession if drastic measures are not taken, the study said.

The decision by the European Central Bank (ECB) to raise interest rates in April and July was a mistake, and the bank should change its strategy, cutting rates to encourage growth, Ernst & Young said.

Current bailout measures have been too focused on liquidity, and not on solvency, Ernst & Young said.

In a statement accompanying the report release, Marie Diron, senior economic adviser, said, “Reliance upon further rounds of austerity to reduce deficits will be self-defeating – much deeper reforms, including labor market liberalization, and faster privatization are needed if the peripheral economies are to escape the unsustainable debt burdens and regain investor confidence. But the benefits of such reforms will take time to be realized.”

Like so many other analyses of the current euro zone sovereign debt crisis, Ernst & Young's report urges greater fiscal consolidation, but as Diron said, "Many countries will resist this implied loss of sovereignty, but without the ability to monitor, control and finance government spending across the Eurozone, there can be no guarantees that fiscal stability can be maintained after the existing severe problems are resolved.”

Similarly, a research paper published on Monday by UBS economist Larry Hatheway warned that while the policy response appears to be gearing up, it is likely that it will take another obvious worsening of the economic situation in the euro zone before there is the level of coordinated action that would be needed to take the response beyond temporary fixed.

That means subsuming individual economic sovereignty in a way that could go against the wishes of electorates, whose response to the EFSF reforms has not been overwhelmingly receptive.

As Hatheway wrote, "The over-riding challenge for Europeans is to resolve how far they are prepared to re-balance the political fault line between fiscal integration and a loss of budgetary and economic sovereignty."

He, too, pointed out that beyond the liquidity and even solvency concerns, growth remains the most compelling problem for policymakers.

"The crisis is also one of growth. An inappropriate obsession with fiscal austerity to the exclusion of all else is not credible in an environment of weakening growth in Europe’s core and recession in the periphery," he said.

"Eventually, Europe will have to switch to other and more permanent mechanisms to solve its imbalances problem. This is going to get tricky and argumentative because a smoothly functioning Euro system, as today, requires even higher levels of economic and fiscal integration, which intrude uncomfortably into the sovereignty of both creditors and debtors. Changes to European Treaties will be required, and these will have to be ratified by every nation, often by referendum."

History, and current rhetoric, suggests that those referenda would be enormously difficult to push through.

"The key here is for politicians to explain in a coherent, clear and sensible way to their populations why the European Union has been a positive thing for living standards, for growth, for general economic development. That's not a message that politicians have made in a very successful way. Rather, they've blamed Brussels," Rahman said.

"They have implemented tough measures at home and blamed Brussels. It's not surprising that people hate the EU, they hate the institutions, they hate Brussels, and yet they have little real understanding what the integration process has done for a country's economic development and its living standards."

It will also require policymakers and, ultimately, markets, to look beyond the immediate crisis and acknowledge that Europe's problems are not simply that of sovereign indebtedness and cannot be solved with silver bullets - they are those shared with much of the rest of the developed world:

A lost generation of unemployed youth; electorates disenfranchised with apparently failed grand economic and political projects; and demographic shifts that leave and skills and wealth locked into an ageing and increasingly dependent majority.

Source: www.moneycontrol.com

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Public issue of Long Term Infrastructure Bonds by Power Finance Corporation Ltd - Issue Structure

PFC’s Infra Bonds issue will be opened on 29-Sep-2011 and will be closed on 04-Nov-2011. The terms of the issue are as follows:

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Glenmark US arm gets tentative USFDA nod for tablets

Drug firm Glenmark today said its US subsidiary has received tentative approval from the US health regulator for its generic Zolmitriptan tablets used for treating migraines.

Glenmark Generics Inc, the US-based subsidiary of Glenmark Generics has received tentative approval from the US Food and Drug Administration (USFDA) for its Zolmitriptan tablets, Glenmark Pharmaceuticals said in a filing to the BSE.

The tablets are generics version of Zomig tablets from IPR Pharmaceuticals, it added.
The tentative approval is for the Zolmitriptan tablets in strengths of 2.5 mg and 5 mg, Glenmark said.

It, however, said "product launch is dependent upon receipt of final approval of its Abbreviated New Drug Application from the USFDA".

The company said it believes that there are no first to file applicants for Zolmitriptan tablets therefore it would commence marketing and distribution of the tablets upon patent expiration in May 2013.

"IMS Health has reported sales for the 12 month period ending June 2011 as USD 41 million," Glenmark said.

The company has 73 generic products authorised for distribution in the US market and has 40 ANDAs pending approval, it added.

Shares of Glenamrk Pharmaceuticals settled at Rs 324.60 on BSE, up 1.44% from previous close.

Source: www.moneycontrol.com

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Anil confirms plan to sell Reliance Infratel

Reliance Communications Chairman Anil Ambani today said the company is in talks with many consortia to sell its telecom tower unit Reliance Infratel in what could be biggest ever private equity deal in the country.

Addressing the shareholders at RCom AGM, Ambani also said the promoters plan to raise their stake in the flagship company to 75% from the current 67.9%.

"We are in the advanced stages of negotiations with a number of consortia which have expressed great interest in this very valuable asset, and I am sure that we will be able to move forward expeditiously. When we hopefully conclude the Reliance Infratel transaction, it will be the largest private equity transaction in the history of this country," Ambani told the shareholders at the AGM here.

Despite posting a loss, the company has declared a modest dividend.

At present, it has an annual interest burden of over Rs 679 crore on a debt of around Rs 32,000 crore. The company also hopes to maintain its debt at substantially lower levels, Ambani added.
The development comes amid reports that private equity giants Blackstone and Carlyle Group have jointly expressed an interest to bid for Reliance Communications' tower business.

At the AGM, the shareholders also approved issue of equity shares of RCom to qualified institutional buyers and raising of resources through issue of securities in the international markets.

Besides, the company also received the shareholders' nod for appointment of J Ramachandran as a Director and adoption of full-year financial statements for 2010-11.

The shareholders also approved appointment of a Manager of the company and that of the auditors.

Source: www.moneycontrol.com

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In advanced talks with Nippon to sell stake in RelCap: Anil

Reliance Capital Chairman Anil Ambani today said the company is looking at unlocking value by divesting across its businesses and is in "advanced stage" of talks to sell a stake in its asset management and mutual funds business to Nippon Life of Japan.

Speaking to the shareholders at the company's AGM here, Ambani also informed that Reliance Capital will explore all possible opportunities to enter the banking sector and announced that the banking entity of the group could be called Reliance Bank.

The comments came in the backdrop of the company sitting on a huge debt of Rs 18,483 crore as of June quarter. In the quarter to June, its assets stood at Rs 25,511 crore with a net profit of just Rs 138.7 crore against Rs 229 crore in the year-ago period and had net sales of Rs 703.6 crore against Rs 1,809 crore year-on-year.

The Reserve Bank had come out with the draft guidelines for new bank licences last month in which it had said that the companies having a significant exposure to broking and real estate businesses would not be entertained.

Reliance Capital has a broking arm. When asked by a shareholder about the banking foray, Ambani said, "at an appropriate time when the RBI decides the
actual process, we will pursue a banking licence."

Citing its recent divestment of 26 percent in Reliance Life Insurance to Japan's Nippon Life, Ambani said, "this is an outstanding showcase of value creation and I am confident that we'll replicate that in each of our businesses
as we move forward."

He said the company has recovered Rs 3,000 crore capital it had invested in the life insurance business by selling 26 percent to the Japanese company. Reliance Capital, which has signed a memorandum of understanding with Nippon Life for exploring collaboration opportunities earlier this month, is in the "advanced stage" of discussion to sell a stake in its asset management and mutual fund business to the Japanese partner, Ambani said.

"We are at an advanced stage of discussion with our new partner Nippon Life (which wants) to take an equity stake in Reliance Capital Asset Management and the Reliance Mutual Fund. We hope that over the next few months, we will have definitive news on that entire exercise," he said.

Besides this, potential investors have also shown interest in picking up a stake in the general insurance business, Ambani said. "We are likely to follow a similar model to Reliance Life to unlock value in Reliance General Insurance," he said. At the AGM, shareholders also approved a proposal for
sale of up to 25% stake in the company to institutional investors through qualified institutional placement.

The Reliance Capital scrip was trading 1.32 percent up at Rs 394.50 on the Bombay Stock Exchange in the afternoon trade, in line with the market sentiment, while the benchmark Sensex was 2.95 percent up at 16,524 points.

The company is already present in lending business through a non-banking finance company, while its other areas of operations include wealth management and a private equity practice. Outlining its plans for the next five years, Rel Cap Group Chief Executive Sam Ghosh said it is targeting to increase its customer base to 5 crore from the present 2 crore, distributor strength to 25,000 from the 5,000 and double the business partners to 10 lakh.

Reliance Capital is also looking at expanding its asset management business to other emerging markets, expand its private equity and wealth management practices and looking at asset reconstruction company and bourses businesses, Ghosh said.

Ambani said, "we want to be among the top three in terms of market share, in terms of number of customers, in terms of profitability in whatever we do." The company will be taking a conservative line in its debt profile, Ambani said, adding that the Rs 3,000 crore from Nippon expected in the next few weeks will be used to repay debt.

He also assured shareholders that he will be taking their requests of a special dividend and a bonus issue to the company board.

Source: www.moneycontrol.com

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FMP Calender - Series XIX - 29th September 2011 - 11th October 2011

FMP Calender - Series XIX - 29th September 2011 - 11th October 2011

HDFC FMP 24M September 2011 (1) - Revised Dates
Opening Date - 30th September 2011 (Friday)
Closing Date - 11th October 2011 (Tuesday)
Allotment Date - 12th October 2011
Maturity Date - 11th October 2013

HDFC FMP 370D October 2011 (1) - Revised Dates
Opening Date - 3rd October 2011 (Monday)
Closing Date - 12th October 2011 (Wednesday)
Allotment Date - 13th October 2011
Maturity Date - 16th October 2012


HDFC FMP 92D October 2011 (1) - No Change
Opening Date - 3rd October 2011 (Monday)
Closing Date - 4th October 2011 (Tuesday)
Allotment Date - 5th October 2011
Maturity Date - 4th January 2012

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Net FII Purchases & Sales During the Week 19th Sept 2011 to 23rd Sept, 2011

Net FII Purchases & Sales During the Week 19th Sept 2011 to 23rd Sept, 2011

FII Sales During the Week

20/09/2011: -4
23/09/2011: -1234.6

FII Purchases During the Week

19/09/2011: 394.6
21/09/2011: 378.7
22/09/2011: 333.7


FII were net seller of Rs 131.60 cr during the week.

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Sectoral Performance During Week 19th Sept, 2011 to 23rd Sept, 2011

Sectoral Performance During Week 19th Sept, 2011 to 23rd Sept, 2011

MAJOR SECTORAL GAINERS:

CONSUMER DURABLE: 0.50%

MAJOR SECTORAL LOSERS:

PHARMA: -1.90%
IT: -2.30%
FMCG: -2.60%
AUTO: -4.70%
OIL & GAS: -5.50%
METAL: -6%
CAPITAL GOODS: -7.30%

MAJOR GAINERS IN NIFTY:

R-POWER: 4%
CIPLA: 2.25%
GRASIM: 1.55%


MAJOR LOSERS IN NIFTY:

TATA MOTORS: -5.05%
HINDALCO: -4%
HDFC BANK: -3.50%

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Trend in Global Market during the Week 19th Sept 2011 to 23rd Sept 2011

Trend in Global Market during the Week 19th Sept 2011 to 23rd Sept 2011

DOW JONES: -6.40%

FTSE: -5.60%

CAC: -7.30%

DAX: -6.80%

BOVESPA: -7%

NIKKEI: -3.40%

SINGAPORE: -3.20%

HANG SENG: -9.20%

SHANGHAI: -1.50%

SENSEX: -4.60%

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Important US Economic Data Releases for the Week 26th Sept 2011 to 30th Sept 2011

Important US Economic Data Releases for the Week 26th Sept 2011 to 30th Sept 2011

Monday
Chicago Fed National Activity Index
James Bullard Speaks
New Home Sales

Tuesday
ICSC- Goldman Store Sales
Consumer Confidence
State Street Investor confidence Index

Wednesday
Durable Goods Orders
EIA Petroleum Status

Thursday
GDP
Jobless Claims
Bloomberg Consumer Comfort Index
Pending Home Sales
EIA Natural Gas
Farm Prices
Fed Balance Sheet

Friday
Personal Income and Outlays
Chicago PMI
Consumer Sentiment

Source: www.sharetipsinfo.com

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Kotak Balance announces Dividend

Kotak Balance announces Dividend

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Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd

5 TOOLS TO EVALUATE MUTUAL FUNDS

5 TOOLS TO EVALUATE MUTUAL FUNDS

These statistical tools are used by fund managers to understand the risk-reward profile of a mutual fund. Though these involve complex formulae, you don't need to calculate all of them. Simply knowing the final figures and what the ratios indicate will help you analyse the fund.

1. STANDARD DEVIATION: It is a measure of a mutual fund's volatility.

HOW TO INTERPRET IT: It measures the degree to which a fund's return fluctuates in relation to its average return over a period of time. The higher the standard deviation, the more volatile the fund, and hence, more risky as the funds performance will rise and fall drastically in a short period of time.

KEEP IN MIND: Usually, as standard deviation increases, so does the return due to the risk-return trade-off. But if two funds with same investment objectives deliver similar returns, the one with the lower deviation is a better choice as it maximises the returns for the given risk level. So, while HSBC Equity and DWS Alpha Equity aim at capital growth from diversified stocks and have performed similarly, the latter has a higher deviation.

2. SHARPE RATIO: The ratio explains whether the fund returns are due to intelligent investment decisions or the result of excessive risk taken by the fund manager.

HOW TO INTERPRET IT: It is measured by subtracting the risk-free return from the fund's return and dividing the result by the standard deviation of its return. The risk-free return in India is considered either to be the bond rate or 181-day treasury bill rate. The higher the ratio, the better is the fund's risk-adjusted performance.

KEEP IN MIND: A fund may fetch higher returns than its peers, but it's usually a good option only if it doesn't take too much risk in doing so. Take Reliance Equity Opportunities and BNP Paribas Dividend Yield. The former multicap fund has earned higher returns, but it also has a lower Sharpe ratio.

3. BETA: It's also a measure of volatility and tells how risky a fund is in comparison to the market.

HOW TO INTERPRET IT: It measures the sensitivity of a fund's return to swings to the market. The market's beta is always 1. The index funds' beta value is equal to that of the market. If the beta is less than 1, it indicates less volatility than the market, and vice-versa.

KEEP IN MIND: Conservative investors whose focus is capital preservation should look at funds with low betas as their values are less likely to decline than those of the benchmark index in a bear phase. The table shows the performance of two funds relative to their benchmark (S&P CNX Nifty) during the bear phase -9 January 2008 to 5 March 2009. Birla Sun Life Asset Allocation Aggressive has a lower beta and fell less than the benchmark.

4. R-SQUARED: The ratio explains how closely a fund's performance correlates with the performance of the overall market.

HOW TO INTERPRET IT: It measures the percentage of a fund portfolio's movement that can be explained by the movement of benchmark index. R-squared values range from 0 to 1, where 0 indicates no correlation, while 1 indicates perfect correlation.

KEEP IN MIND: Avoid investing in the actively managed funds that have higher expense ratios and are still perfectly correlated with the index as it will be better to invest in an index fund. In the example, ING Large Cap Equity has the same R-squared as an index fund. The 3- year returns of the fund are only 0.5% higher than the index fund, while there is a differential of 1.5% in the expense ratio.

5. ALPHA: It quantifies what the fund manager brings or takes away from the return of an investment, which is based on his skill and value addition that he provides.

HOW TO INTERPRET IT: It is a measure of performance on a risk-adjusted basis. Alpha considers the price volatility of the fund and compares its risk-adjusted performance with that of the benchmark index. The excess return of the fund relative to benchmark index is called alpha. A positive alpha of 1 means that the fund has outperformed its benchmark index by 1%, and a similar negative alpha indicates an underperformance of 1%.

KEEP IN MIND: Funds with negative alpha are not good options as it means the fund manager is not generating any value-added return in excess of the market. The more positive an alpha, the better it is. In reality, few fund managers create a meaningful alpha that negates the expenses of the scheme. The table below shows that HDFC Top 200 has generated significant alpha, while UTI contra has not, and JM equity has created a negative alpha.

Source: www.wealth.economictimes.com

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Head Dealer

DENIP Consultants Pvt Ltd

Fmp Details (As on 21st Sept 2011)

Fmp Details (As on 21st Sept 2011)



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Head Dealer
DENIP Consultants Pvt Ltd

FMP Calender - Series XIX - 29th September 2011 - 10th October 2011

FMP launch calendar for the period 29th September 2011 - 10th October2011

HDFC FMP 182D September 2011 (1)

Opening Date - 29th September 2011 (Thursday)

Closing Date - 29th September 2011 (Thursday)

HDFC FMP 24M September 2011 (1)

Opening Date - 30th September 2011 (Friday)

Closing Date - 10th October 2011 (Monday)

HDFC FMP 370D October 2011 (1)

Opening Date - 3rd October 2011 (Monday)

Closing Date - 5th October 2011 (Wednesday)

HDFC FMP 92D October 2011 (1)

Opening Date - 3rd October 2011 (Monday)

Closing Date - 4th October 2011 (Tuesday)

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Gaurav Agarwal

Head Dealer

DENIP Consultamts Pvt Ltd

Fmp Details (As on 20th Sept 2011)

Fmp Details (As on 20th Sept 2011)



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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Gold rallies on deteriorating debt crisis

Gold prices rallied on Monday as a series of political setbacks over the weekend reinforced fears about the deteriorating euro zone debt crisis, prompting investors to seek refuge in the precious metal.

Spot gold was bid at USD 1,821.00 a troy ounce at 0900 GMT from USD 1,810.73 late in New York on Friday. The precious metal hit a record high of USD 1,920.30 on September 6.

The cancellation of a visit by Greek Prime Minister George Papandreou to the United States to chair an emergency cabinet meeting at home and a regional election defeat for German Chancellor Angela Merkel added to perceptions of a worsening crisis.

"Buying interest is picking up and given ongoing problems in the euro zone and the financial system, safe-haven demand should remain strong," said Carsten Fritsch, analyst at Commerzbank. "Last week's correction was just a short term brief downward move."

Spot gold hit a three-week low of USD 1,761.94 an ounce on Friday.

EU finance ministers at meetings ending on Saturday broke no new ground in dealing with the crisis and made no decision on whether to give more firepower to the 440-billion euro bailout fund as suggested by US Treasury Secretary Timothy Geithner.

Markets are expected to focus on a policy meeting of the US Federal Reserve on Tuesday and Wednesday. Any announcement of further stimulus for the economy could help buoy gold prices.

Opportunity cost

Gold prices are expected to hit USD 2,200 by 2012, supported by the economic uncertainties in Europe and the United States, said the chief executive of AngloGold Ashanti, the world's third-largest gold producer.

"The European sovereign debt crisis remains unresolved, underpinning investment demand, and we see an extended period of negative real interest rates," Morgan Stanley said in a note.

Low or negative interest rates mean there is no opportunity cost to holding gold as major currencies such as the dollar, yen or sterling yield little or nothing in interest.

The Federal Reserve, facing rising global financial strains and recession fears, is poised to increase downward pressure on longer-term interest rates next week in a bid to help the sputtering US recovery.

"Beyond near-term weakness, we remain positive on gold as uncertainty heightens over Europe and the near-term outlook for the US, as well financial market instability," Barclays Capital said in a note.

"(Gold's) downside has been cushioned by physical demand and looks to be increasingly supported amid the seasonally strong period for demand."

Analysts expect gold to be supported at USD 1,800 an ounce, a level at which Asian buyers have been seen returning to buy. On the upside, gold is likely to zigzag up towards USD 1,930 an ounce, with an immediate target at USD 1,860, said Reuters market analyst Wang Tao.

Silver tracked gold higher. It was at USD 40.32 an ounce from USD 40.60 late on Friday.

Platinum was at USD 1,809.25 from USD 1,804.83 and palladium at USD 723.00 from USD 727.05 an ounce.

Platinum and palladium have recently come under pressure from expectations of weaker demand from the auto industry, which uses precious industrial metals to make catalytic converters.

Source: www.moneycontrol.com

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SEBI's trading curbs may hit over 1000 non-compliant cos

Come September end and hundreds of stocks may have to shift to trade-to-trade segment if they don't comply with Sebi norms for 100% promoter holding to be in dematerialised form. And as many stocks remain non-complaint as of now, a serious impact on the overall liquidity cannot be ruled out, reports CNBC-TV18's Tanvi Shukla.

The Sebi circular issued on June 17, 2011 stated that all of the promoter holding in a stock will have to be converted into dematerialized form by September end. With the deadline soon approaching, Sebi is concerned about the companies that have not done so, as yet. If companies do not comply with these norms, the trading will have to shift from normal segment to trade-to-trade segment.

As of June 30, 27 of the Nifty 50 stocks are non-compliant. Around 1,090 stocks listed in the National Stock Exchange are non-compliant as of June 30 and these include PSUs like GAIL, BPCL, and BHEL who have not converted their entire promoter holding into a dematerialized form, as of now.
If these stocks have to convert to a trade-to-trade segment trading then it could include intraday trading would not be allowed to square off. Netting would not be possible. And, these could impact the stock, in terms of getting out of the index itself.

The derivative trading of such stocks may be discontinued. There can be an impact on the overall liquidity of the scrip in itself. With all such possibilities on cards, Sebi has laid out in a public notice today asking companies to comply with the norms by September 30.

Source: www.moneycontrol.com

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GTL surges on lenders' nod for debt restructuring

Shares of GTL twins bounced after the lenders have approved the debt restructuring proposal for the two companies, reports CNBC-TV18's Gopika Gopakumar.

According to sources, SBI Caps, which is the advisor to GTL, has proposed a restructuring package for the company. Under this basic restructuring package, loans will be restructured over a period of eight years and the interest rate will be reduced from 13.5% to around 10.8%.

Sixteen lenders, including Standard Chartered Bank, Bank of India, Andhra Bank and IDBI have agreed for corporate debt restructuring.

ICICI Bank, which had earlier converted their pledged shares into equity and currently hold around 29.3% stake in GTL, did not vote for or against CDR process.
CNBC-TV18 learns from sources that ICICI Bank is currently negotiating with the company separately to restructure the loans given to GTL.

GTL had also taken USD 150 million worth EBCs from 10 banks. Sources say bankers will have to restructure these forex loans to a later date because the repayment date for them was today (September 19).

Bankers say much of GTL’s Rs 6,000 crore debt is unsecured. That’s the reason why it has taken time to agree upon the CDR package unlike in the case GTL Infra, which had earlier gone in for CDR.

Shares of GTL closed trade on Monday, up Rs 5.40, or 8.52% at Rs 68.75.

Source: www.moneycontrol.com

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Trend in Global Market during the Week 12th Sept 2011 to 16th Sept 2011

Trend in Global Market during the Week 12th Sept 2011 to 16th Sept 2011

DOW JONES: 4.70%
FTSE: 2.90%
DAX: 7.40%
CAC: 1.90%
BOVESPA: 2.60%
NIKKEI: 1.90%
SINGAPORE: -1.30%
HANG SENG: -2.10%
SHANGHAI: -0.70%
SENSEX: 0.40%

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Sectoral Performance During Week 12th Sept, 2011 to 16th Sept, 2011

Sectoral Performance During Week 12th Sept, 2011 to 16th Sept, 2011

MAJOR SECTORAL GAINERS:

IT: 3.10%
OIL & GAS: 1.50%
REALTY: 1.40%
PSU: 1.30%
AUTO: 0.90%

MAJOR SECTORAL LOSERS:

FMCG: -0.70%
CONSUMER DURABLE: -1.60%
CAPITAL GOODS: -3.10%

MAJOR GAINERS IN NIFTY:

TATA MOTORS: 7.05%
ONGC: 5.40%
NTPC: 4.80%

MAJOR LOSERS IN NIFTY:

AMBUJA CEMENT: -4.50%
HCL TECH: -4.30%
R-COM: -3.50%

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Net FII Purchases & Sales During the Week 12th Sept 2011 to 16th Sept, 2011

Net FII Purchases & Sales During the Week 12th Sept 2011 to 16th Sept, 2011


FII Sales During the Week

12/9/2011: -219.8
13/09/2011: -779.6
14/09/2011: -369.6
15/09/2011: -9.2

FII Purchases During the Week

16/09/2011: 166.8

FII were net seller of Rs 1,211.40 cr during the week.

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DENIP Consultants Pvt Ltd

Important US Economic Data Releases for the Week 19th Sept 2011 to 23rd Sept 2011

Important US Economic Data Releases for the Week 19th Sept 2011 to 23rd Sept 2011

Monday
Housing Market Index

Tuesday
FOMC Meeting Begins
Housing Start

Wednesday
Existing Home Sales

EIA Petroleum Status Report
FOMC Meeting Announcement

Thursday
Jobless Claims
Bloomberg Consumer Comfort
FHFA House Price
Leading Indicators
EIA Natural Gas Report

Source: www.sharetipsinfo.com

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DENIP Consultants Pvt Ltd

GVK Power acquires Australia's Hancock Coal for $1.26 billion, plans to invest $10 billion more

Infrastructure major GVK Power, part of the GVK Group, on Friday said it has agreed to acquire Australia's Hancock Coal for $1.26 billion, in one of the largest overseas acquisitions by an Indian infrastructure entity.

GVK said the deal, which includes acquiring majority holding in coal resources and railway line and port infrastructure projects of Hancock Coal, will offer the Hyderabad-based company option for long term coal supply contracts for the purchase of up to 20 million tonnes every year. This can support around 7,500 megawatts of power generating capacity.

On August 26, ET had reported that GVK Power was close to acquiring two coal mines from Hancock Coal for about $1.3 billion.

"While this builds a strong resource business for GVK, it will also significantly enhance the value to GVKPIL shareholders as we will now be able to increase the capacity of our coal power business with an assured in house supply of raw material," GVK Chairman GVK Reddy said in a statement.

GVK will pay the consideration in a phased manner to the Hancock Group, with $500 million upfront. About $200 million will be paid in one year from closing the deal and another $560 million on financial closure of the project, which is expected next year.

The Hancock coal project consists of 7.9 billion tonnes reserves.

The deal comes a year after Adani Enterprises bought Australia-based Linc Energy's coal assets for about Rs 12,600 crore in the largest such transaction. In march this year, Lanco, another Hyderabad-based infrastructure major, bought Australia's Griffin Coal for A$750 million.

GVK Power, a flagship of the GVK group, and its subsidiary GVK Energy, have been aggressively trying to secure fuel supply agreements in an energy deficient market for their proposed power plants India. The acquisition enables GVK Power to secure adequate fuel supplies for its power ventures.

Hancock Group chairman Georgina Hope Rinehart, one of Australia's richest women, will join the board of GVK Power as a non-executive director.

The Hyderabad-based infrastructure group said it has tied-up the funding for the acquisition with banks and the financing documents for funding the acquisition are being executed with the banks and the transaction is expected to close and assets transferred in about two weeks.

Ernst & Young acted as the financial advisor to GVK for the acquisition. Amarchand & Mangaldas & Suresh A. Shroff & Co were the legal advisors, while Minter Ellison Lawyers were Australian legal advisors to GVK.

GVK estimates a total investment of $10 billion in the first phase of developing the mines, rail line and port. However, it did not disclose details on funding arrangements for this investment.

The transaction was done by GVK Coal Developers (Singapore) Pte Limited (GVKCDPL), a step down subsidiary of GVK Natural Resources. Initially, GVK Natural Resources will hold 90% and GVK Power will hold the remaining 10%. GVK Power has the option to increase its stake up to 49%, subject to necessary approvals from the Foreign Investment Review Board (Australia).

GVK entities have agreed to acquire a shareholding up to 79% in Alpha Corner and Alpha West Coal Projects, located in the Galilee Basin in Queensland, wherein the Hancock Group will retain the remainder of the shareholding.

GVK firms would acquire a 100% shareholding in the Kevin's Corner Coal Project, located immediately adjacent to Alpha. Further, the entities of GVK group will also acquire a 100% shareholding in the rail and port project connecting the above coal projects to the port of Abbot Point and Abbot Point T3 expansion project, whilst retaining some tonnage capacity for the Hancock Group.

The infrastructure project involves the development, ownership and operation of an integrated infrastructure development consisting of a 495 km rail line and a 60 million tonnes per annum port at Abbot Point. At full production, the three coal projects are together expected to supply about 84 million tonnes per annum to the global sea-borne coal market.

GVK said the first phase of production, expected to start in 2014, envisages a total production of over 30 million tonnes per annum of high quality thermal coal. The coal mines will deliver a very high quality thermal coal with a gross calorific value (as received) of about 5800-6000 kcal/kg and low ash and low sulphur content.

Most of the coal from the project is intended for delivery into the Asian region as letters of intent for approximately 45 million tonnes per annum have already been signed or are in the process of finalisation with major utility companies in China, Japan, Korea, Taiwan and Vietnam.

Source: www.economictimes.com

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Petrol price hike: Cost of petrol in your city

Government oil companies hiked petrol price by Rs 3.14-3.32 per litre after decline in rupee's exchange value increased the cost of buying crude oil and widened losses from fuel sales.

Petrol price will vary from city to city due to differential rates of local sales tax. This is the second hike in four months. Oil companies had last hiked petrol price by Rs 5 per litre on May 15.

IOC, BPCL and HPCL lost Rs 2,450 crore this fiscal on selling petrol below the cost.

Besides petrol, the three firms are losing Rs 263 crore per day on selling diesel, domestic LPG and kerosene below cost. Diesel is being sold at a subsidy of Rs 6.05 a litre, kerosene at Rs 23.25 per litre while domestic LPG rates are under-priced by Rs 267 per 14.2-kg cylinder.

Following are the revised rates of petrol in the four metros after today's decision to hike prices by over Rs 3 per litre:



Source: www.economictimes.com

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Govt puts ONGC FPO on hold

The government has decided to put follow-on public offer (FPO) of Oil and Natural Gas Corporation ( ONGC ) on hold, reports CNBC-TV18.

ONGC, in a notice sent to the exchange, said the selling shareholder has decided not to proceeds with issue. "We shall evaluate decision on issue in due course," the notice stated.

The FPO has been deferred for a short period, not put off indefinitely, clarified economic affairs secretary R Gopalan.

Gopalan is also confident of meeting FY12 divestment target of Rs 40,000 crore. However, he added, "We can't go ahead with divestment in volatile market. We don't want to sell PSU stocks recklessly."

“Markets should not hammer stocks on divestment news," he felt.
At 09:41 hours IST, the share was trading at Rs 274.70, up Rs 14.60, or 5.61%, with volumes of 874,095 shares, which increased 200% compared to 5-day average of 293,819 shares.

Market capitalisation stood at Rs 235,019.31 crore.

Yesterday, govt also hiked petrol prices by Rs 3.14 per litre, which also boosted the stock because the subsidy sharing burden with oil marketing companies would be lower going forward.

Source: www.moneycontrol.com

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Credit Policy: RBI hikes repo rate by 25 bps to 8.25%

Continuing with its anti-inflationary stance, the Reserve Bank of India (RBI) has raised the benchmark interest rates by quarter of a percent point on Friday, while keeping cash reserve ratio (CRR) rate unchanged.

The decision comes as the authorities struggle to control near double-digit inflation, which is uncomfortably high for more than two years.

The repo rate now stands at 8.25%, while the reserve repo gets adjusted to 7.25%. The CRR remains unchanged at 6%.

The hike in rates was along expected lines. In a poll of bankers and economists by CNBC-TV18, 70% said the RBI will hike rates by 0.25% while only 20% believed that there will be no hike this time.

The RBI has been one of the most aggressive central banks in the world, however, price pressures still remain high, mainly due to strong demand pressures that have spread from food to other commodities.

The wholesale price index, India's main inflation gauge, rose 9.78% in August, higher than the median forecast for a 9.6% rise in a Reuters's poll and above the 9.22% recorded for July.

Inflation has been much above the comfort zone, the RBI official told reporters adding, "We will continue with the current anti-inflationary stance."

The RBI monetary tightening is impacting the country's economic growth, finance minister Pranab Mukherjee told reporters on Friday, after the central bank delivered its 12th rate hike in the last 18 months. "I am hopeful the measures taken will help control inflation," he said adding, "…headline inflation is a matter of concern."
He was also optimistic of growth picking up in the second half of the year.

When the repo rate increases, borrowing from RBI becomes more expensive. As a result, all loans -- personal and corporate -- are likely to become costlier and home loan EMIs will increase once banks hike their base rate - the rate to which most retail loans are pegged.

RBI believes the global economic environment has worsened and the recent developments in them a matter of "serious concern". It sees a downside risk to July growth projection.

"The pace of exports is unlikely to sustain on weak demand," RBI said.
GDP growth during the first quarter (April-June) of the 2011-12 financial year moderated to an 18-month low of 7.7% from 8.8% in the corresponding period year ago, following a slowdown in industrial output growth during July to 3.3%, the lowest in 21 months.

Source :www.moneycontrol.com

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Fmp Details (As on 15th Sept 2011)

Fmp Details (As on 15th Sept 2011)

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DENIP Consultants Pvt Ltd

DSP BlackRock FMP - Series 11 - 3M and DSP BlackRock FMP - Series 12 - 12M Closing on September 19, 2011

DSP BlackRock FMP - Series 11 - 3M and DSP BlackRock FMP - Series 12 - 12M Closing on September 19, 2011

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Head Dealer

DENIP Consultants Pvt Ltd

ICICI Prudential FMP Series 58 - 19 Months Plan F

ICICI Prudential FMP Series 58 - 19 Months Plan F

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DENIP Consultants Pvt Ltd

Net FII Purchases & Sales During the Week 5th Sept to 9th Sept 2011

Net FII Purchases & Sales During the Week 5th Sept to 9th Sept 2011

FII purchases during the week:

5/9/2011: 1178.1
6/9/2011: 212
7/9/2011: 568.8
8/9/2011: 374.2
9/9/2011: 29.4

FII were net buyer of Rs 2362.50 crore during the week.

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Sectoral Performance During Week 5th Sept 2011 to 9th Sept 2011

Sectoral Performance During Week 5th Sept 2011 to 9th Sept 2011

MAJOR SECTORAL GAINERS:

CONSUMER DURABLE: 5%
CAPITAL GOODS: 3.40%
AUTO: 2.10%

MAJOR SECTORAL LOSERS:

POWER: -0.20%
PHARMA: -0.80%
FMCG: -0.90%
IT: -0.90%
METAL: -1%

MAJOR GAINERS IN NIFTY:

HUL: 2.60%
HERO MOTO: 2.45%
PNB: 0.50%

MAJOR LOSERS IN NIFTY:

R-COM: -6.25%
AMBUJA CEMENT: -6.10%
HINDALCO: -5.72%

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Trend in Global Market during the Week 5th Sept 2011 to 9th Sept 2011

Trend in Global Market during the Week 5th Sept 2011 to 9th Sept 2011

DOW JONES: -2.20%
FTSE: -1.50%
CAC: -5.50%
DAX: -6.30%
BOVESPA: -1.30%
SINGAPORE: -0.60%
NIKKEI: -2.40%
HANG SENG: -1.70%
SHANGHAI: -2.30%
SENSEX: 0.30%

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DENIP Consultants Pvt Ltd

Important US Economic Data Releases for the Week 12th Sept 2011 to 16th Sept 2011

Important US Economic Data Releases for the Week 12th Sept 2011 to 16th Sept 2011

Tuesday
Import and Export Prices.
NFIB Small Business Optimism Index.
Treasury Budget

Wednesday
Producer Price Index
Retail Sales
Business Inventories
EIA Petroleum Status

Thursday
Consumer Price Index
Empire State Manufacturing Survey
Jobless Claims
Current Account
IIP
Bloomberg Consumer Comfort Index
EIA Natural Gas Report

Friday
Consumer Sentiment

Source: www.sharetipsinfo.com

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Head Dealer

DENIP Consultants Pvt Ltd

Fmp Details(As on 12th Sept 2011)

Fmp Details(As on 12th Sept 2011)

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Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd

Dow Jones ends below 11K, down 304 pts on Europe woes

The US equity markets ended sharply lower on Friday on fears that German may default on its debt. Resignation of the top German official at the European Central Bank in protest of the bank's bond-buying program too added fuel to the fire.

The Dow Jones Industrial Average fell 303.68 points or 2.69%, to close at 10,992.13. The NASDAQ Composite dropped 61.15 points or 2.42%, to end at 2,467.99. The Standard and Poor's 500 Index slipped 31.67 points or 2.67%, to settle at 1,154.23.

ECB Executive Board member Juergen Stark will step down from his post by the end of the year, the bank said on Friday. Two sources told Reuters Stark's resignation, which comes almost three years before his term is due to expire, was because of a conflict over the central bank's controversial program of buying up sovereign bonds to help hold down borrowing costs in some debt-strapped euro zone members.

"The ECB is critical in dealing with and potentially solving the sovereign debt issue, so when you get a new story like this, that there's internal turmoil in the ECB, that immediately has implications for the bond-buying program, which immediately has implications on the capital level in European banks," said Jack de Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.

Terrorism threats against New York City and Washington just ahead of the 10th anniversary of the September 11 attacks also prompted investors to sell equities ahead of the weekend.

At a meeting of Group of Seven finance chiefs being held in France, US Treasury Secretary Timothy Geithner on Friday pressed Europe's strongest economies to give "unequivocal" financial support to weaker euro zone states to overcome a debt crisis that threatens the world economy.

Investors remained skeptical about how much of President Barack Obama's USD 447 billion proposal to generate US jobs would make it through Congress. Obama on Thursday night challenged Congress to enact tax cuts and new spending to revive a stalled job market, but he faces an uphill fight to win over Republicans.

Among largecaps, McDonald's fell 4% to USD 85.03 and Bank of America tumbled 3% to USD 6.98.

Yahoo gained 0.28% to USD 14.48 and Texas Instruments slipped 1% to USD 26.08.

On the economic front, the Commerce Department said wholesale inventories rose 0.8% in July to a seasonally adjusted USD 462.41 billion. It gained 0.6% in June.

Among the European markets, Britain's FTSE fell 2.35%, Germany's DAX lost 4.04% and France's CAC dropped 3.60% at close.

Source: www.moneycontrol.com

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Gaurav Agarwal

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DENIP Consultants Pvt Ltd