Monday, October 31, 2011

Europe is drowning and needs a lifeline, where to turn for help? The answer: China

Europe is drowning and needs a lifeline. A series of marathon meetings this week yielded a new set of proposals, but what they depend on is cash – and lots of it, perhaps trillions of dollars – to save Greece and the European banking system and to prevent financial contagion from spreading to Spain, Italy and even France, which would destroy the euro zone as we know it. Where to turn for help? The answer is obvious: China.

Indeed, the call by President Nicolas Sarkozy of France this week to President Hu Jintao of China, seeking support for the European Financial Stability Facility, could represent a major change in the global landscape: the consolidation of China's economic dominance at the expense of the status quo powers – the United States and Europe.

Despite the agreement among Europe's leaders on Thursday to recapitalize banks on the Continent, the reality is that Europe cannot muster this cash on its own. In part, this is because most countries are fiscally stretched and even Germany, with a debt-to-gross domestic product ratio above 80 percent, is reaching the limits of its check-writing ability. But it is also because Germany seems reluctant to transfer resources, either directly through fiscal means or indirectly through the European Central Bank.

And with a United States essentially sidelined because of its own economic and fiscal weakness, it is even less of a surprise that the SOS is going out to China. Only China, with its $3 trillion in reserves, is now able to provide the magnitudes of relief that Europe desperately needs.

What should China do? So far, it has opted not to be an active financier of the European countries threatened by crisis. But that is increasingly becoming a less tenable position. China is the world's major exporter, and averting economic collapse in the indebted importing countries of Europe will be very much in China's interest.

But China has a choice. It can help Europe bilaterally by back-stopping the stability facility, as Europe has requested, or by guaranteeing to buy Italian and Spanish bonds at a rate that would keep these countries' finances sustainable (much as the European Central Bank ought to be doing). Or it can help by providing the International Monetary Fund with additional money to, in turn, lend to Europe.

From China's perspective, the possible advantage would be to exert power to obtain direct and concrete benefits. For example, it could ask for market economy status in Europe, which would reduce the scope for protectionist action against Chinese goods entering the European market. It could also seek to buy companies in distressed countries on advantageous terms.

The risks in this bilateral approach are considerable. It would expose China to the charge of becoming enmeshed in European politics. Domestically, it would expose the government to the charge of privileging foreign investment at the expense of investing in what is still a poor country with great development needs and challenges.

Helping Europe by strengthening the IMF and increasing its lending would avoid some of these political costs, especially since China would not be directly involved in European politics and problems. But China would have to receive something considerable in return for the extra resources that it would be providing.

China should demand nothing less than a wholesale revamping of the governance of the IMF to reflect the current economic realities. Governance reform can no longer be just about the nationality of the IMF's managing director but should fundamentally be about who will have the greatest voice and exercise the most power in the new world.

Today, the United States and Europe each have effective veto power in the IMF because important decisions require an 85 percent share of the vote. If China were to become the IMF's major financier it should have veto power on terms equivalent to those of the United States. Europe's power should be reduced commensurate with its transition from creditor to potential borrower status. Supplicants, China should insist, cannot have veto power in a financial institution.

The Chinese government could then trumpet a nationalist achievement – equal status as the United States, and a greater status than that of Europe, in running the world's premier financial institution – as the return for investing its cash abroad.

These demands would be legitimate and indeed be welcome for the world because they would tether China more firmly to, and create a stake for it in, the multilateral system. Those in the United States and Europe who would resist these changes should remember that the alternatives are worse. A China that uses its might bilaterally to gain narrow political advantages would be a worrying portent for the future when China becomes economically bigger and stronger. And a China that refuses to take the phone call at all could well push Europe off the cliff. Europeans are running out of options; debtors cannot be choosers.


Source: www.economictimes.com


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Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd

India's overall deficit in FY12 likely to be at 8.6% of GDP: Repor

India's combined fiscal deficit -- of both the Centre and states--during 2011-12 could be as high as 8.6 per cent of the GDP and any further slippage could risk a credit downgrade and loss of business confidence, says a report.

According to global research firm Macquarie, consolidated fiscal deficit of the country including off-budget items like food, oil and fertiliser is likely to be around 8.6 per cent amid slowing revenue growth and "lack of expenditure management by the government".

Macquarie further warned the country's fiscal deficit already remained high and any further slippage can increase the risk of "credit rating downgrade and loss of business confidence". It said the Indian government needs to adhere to the path of fiscal correction.

"We believe that the government needs to stick to its commitment of fiscal consolidation and curtail expenditure growth to create a room for private investments," the report said.

The overall fiscal deficit in financial year 2010-11, excluding the 3G spectrum receipts stood at 9 per cent, it said.

"This, in an environment of weak global capital markets, could result in higher cost of capital and further crowding out of private investments and thus slower growth," it said.

Moreover, high fiscal deficit is also the main culprit responsible for high inflation, Macquarie said.

Empirical estimates suggest that a 1 per cent increase in level of fiscal deficit could cause about a quarter of a percentage point increase in the WPI.

Inflation has remained above the RBI's comfort zone of 5-5.5 per cent over the last 22 months and has averaged over 9 per cent during this period.


Source: www.economictimes.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

NRIs liable to file tax returns too in India

From the perspective of tax liability, under the Income Tax Act, an individual is considered to be a resident ofIndia if he meets either of these conditions - he should be present in India physically for 182 days or more in a tax year (April 1 to March 31), or for 60 days in a tax year and 365 days or more in the preceding four tax years.

The period of 60 days will be extended to 182 days if the individual is an Indian citizen who left India during a tax year for employment abroad or as a member of the crew of an Indian ship, or is a person of Indian origin and comes to India on a visit. A person is deemed to be of Indian origin if he or either of his parents or any of his grandparents were born in India.

If neither of these conditions are met, the individual is classified as a non-resident. A NRI may be required to file income tax returns in India under certain situations. It depends on whether the income earned by the individual is taxable in India. In case of a NRI, income received in India and income that accrues in India are taxable here.

Just like residents, NRIs are also required to file income tax returns in India, in case the local income exceeds the basic exemption limits. In case the income consists only of returns from investments or longterm capital gains and the applicable tax has been withheld on the income, the NRI is not required to file income tax returns.

To file the returns, a NRI will need a PAN. The PAN needs to be quoted in all correspondences with the tax authorities, including income tax returns. Based on the nature of income, the appropriate income tax returns form needs to be filled. The income tax returns can be filed either in physical form or electronically through the website of the Income Tax Department.

In case a NRI chooses to file the returns physically, he must fill the relevant ITR form and submit it along with the acknowledgment (ITR V) to the income tax office concerned, signed and verified. If the individual is not present in India, the income tax returns and acknowledgement should be signed by a person authorised by him and holding a valid power of attorney.

In case of electronic filing, the NRI is required to fill in the necessary details and validate the ITR form. Upon validation, a XML file is generated, which is uploaded on the website with a digital signature. The digital signature is required to be obtained separately from the specified authorities . However, if the XML file is uploaded without a digital signature, the individual is required to print the acknowledgement and submit it through ordinary post to the Centralised Processing Centre (CPC).

Not filing income tax returns will result in interest and penalty. In case there are any losses to be carried forward, the returns need to be filed. Without filing the returns, the losses cannot be carried forward for set-off against subsequent years' incomes.

India has signed double taxation avoidance agreements with most countries which can be referred to in order to avoid double taxation of income in both countries.

Source: www.economictimes.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Consumers confidence highest in India - Nielsen

Global consumer confidence remained weak in the third quarter with more than 60 percent of consumers saying it was not a good time to spend, and one-in-three North Americans saying they have no spare cash, a survey showed on Sunday.

Confidence was highest in India for a seventh straight quarter but India's reading fell 5 points from the second quarter and Saudi Arabia was catching up.

The economic outlook, followed by job security, became consumers' biggest concern in the third quarter, overtaking worries about rising inflation, according to the quarterly survey by global analytics and information company Nielsen.

The Nielsen Global Consumer Confidence Index dipped just 1 point in the third quarter from the second quarter to 88 points, but it was shored up by a surge in confidence in emerging economies Brazil and Saudi Arabia, which masked weak confidence in major developed economies.

A reading below 100 indicates consumers are pessimistic about the economic outlook for the coming months.

Consumer morale in the euro zone remained especially weak, notably in France, as the region's debt crisis deepened during the summer. Confidence in Greece, at the centre of the crisis, actually rose sharply but it was still the fourth-weakest of markets surveyed. Confidence was lowest in Hungary.

One-in-five Europeans said they have no extra cash to spend, although that was better than one-in-three North Americans. Confidence in European powerhouse Germany was better than much of Europe and the United States, but like the U.S. its reading dipped 1 point from the second quarter.

"The third quarter was volatile and challenging for global economies and financial markets amid stagnant U.S. unemployment figures and a worsening euro zone debt crisis," said Venkatesh Bala, chief economist at The Cambridge Group, a part of Nielsen.

"A recessionary mindset is growing among consumers as more than half say they are currently in a recession -- up 4 percentage points from last quarter and 7 points from the start of the year. The result is continued spending restraint for discretionary expenses, which is expected to continue into next year."

The survey, taken between Aug. 30 and Sept. 16 and covering 28,000 consumers in 56 countries, showed 64 percent of consumers globally saying it was not a good time to spend.

Financial markets picked up last week following a euro zone agreement to tackle its debt crisis and after encouraging third-quarter U.S. economic growth data, but further positive data will be required to reassure consumers.

Confidence in China dipped a point while in Europe the Baltic states of Latvia and Lithuania saw a surge in confidence, though it was still relatively low.

The survey showed that global consumers facing tighter budgets would cut back on clothing purchases, dining out and buying electronics and appliances before anything else.

"If the global economic climate worsens, these three sectors appear to be particularly vulnerable," said Bala.

The survey is based on consumers' confidence in the job market, status of their personal finances and readiness to spend.

Nielsen Global Consumer Confidence Index in the third quarter, 2011 (Change from Q2, 2011 survey in brackets):

Top 10 index readings Bottom 10 index readings

India 121 (-5) Estonia 72 (+6)

Saudi Arabia 120 (+13) Lithuania 71 (+11)

Indonesia 114 (+2) Latvia 69 (+12)

Philippines 112 (-3) Ireland 64 (0)

Brazil 112 (+16) France/Japan/Spain 56^

Thailand 109 (+4) Italy 52 (-3)

UAE 105 (-5) Greece 51 (+10)

China/Hong Kong 104 (-1,-3) Romania/S.Korea/Croatia 49*

Norway/Malaysia 101 (+3,-9) Portugal 40 (-2)

Switzerland 99 (-9) Hungary 37 (-6)

--------------------------------------------------------------

Global consumer confidence average 88 (-1)

United States 77 (-1)

Germany 87 (-1)

UK 73 (+1)

^ (-13,+1,-4)

* (+2,-3,+4)


Source: www.moneycontrol.com


Thanks,

Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd

Germany finds 55 bln euros after accountancy error

Germany is 55.5 billion euros ($78.7 billion) richer than it thought due to an accountancy error at the bad bank of nationalised mortgage lender Hypo Real Estate (HRE), the finance ministry said.

Europe's largest economy now expects its ratio of debt to gross domestic product to be 81.1 percent for 2011, 2.6 percentage points less than previously forecast, it said.

The HRE-linked bad bank FMS Wertmanagement was set up after HRE was nationalised in 2009, so that HRE could transfer the worst non-performing assets to an off-balance sheet bank guaranteed by the German state.

"Apparently it was due to sums incorrectly entered twice," said a ministry spokesman on Friday, adding the reason for the error still needed to be clarified.

The government nonetheless welcomed the news which pointed to a further reduction of Germany's debt mountain, which remains above the European Union's Maastricht requirement for 60 percent of GDP.

However, the opposition Social Democrats (SPD) expressed astonishment at the extent of the accountancy error, for which they see the government as responsible.

"This is not a sum that the Swabian housewife hides in a biscuit tin and forgets," said SPD parliamentary leader Thomas Oppermann. "To overlook such a sum is completely irresponsible."

Swabians, from the south-west of Germany, are renowned for their savings skills.

Of the total sum uncovered at FMS, 24.5 billion euros is for 2010 and 31 billion euros is for 2011.

"HRE's bad bank is a state-owned bank for which (Finance Minister) Wolfgang Schaeuble is responsible," Oppermann added. "He is responsible for the bank being managed and supervised in an orderly way, and this clearly was not the case."

FMS Wertmanagement was created when toxic loans and securities with a face value of 173 billion euros were transferred from HRE in October last year, creating Germany's largest bad bank. ($1 = 0.705 Euros).


Source: www.moneycontrol.com


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Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd

Saturday, October 29, 2011

Kotak FMP 370D Series 9: Dividend Declaration

Kotak Mutual Fund has announced dividend under the dividend option of Kotak FMP 370D Series 9. The quantum of dividend will be the entire appreciation in the Net Asset Value of dividend option until October 25, 2011.

The record date has been fixed as October 25, 2011.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

UTI Money Market Fund: Change in Exit Load

UTI Mutual Fund has revised the exit load of UTI Money Market Fund, with effect from October 24, 2011. The revised exit load will be 0.50% if redeemed on or before 3 days from the date of acceptance for investments made on or after October 24, 2011.

Presently, the exit load is NIL.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

HSBC Cash Fund and HSBC Floating Rate Fund – Long Term Plan: Introduction of Daily SIP

HSBC Mutual Fund has announced to introduce daily SIP facility in HSBC Cash Fund and HSBC Floating Rate Long-term, with effect from November 1, 2011.

The minimum investment amount in case of Daily SIP will be Rs. 2,00,000 for both the funds.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Franklin Templeton FTF Series IX & X: Dividend Declaration

Franklin Mutual Fund has announced dividend under the dividend option of Franklin Templeton FTF Series IX - Plan B & Franklin Templeton FTF Series X - Plan C & D. The quantum of dividend for individuals and HUF will be Rs. 0.572 per unit and Rs. 0.660 per unit for Series IX and Series X, respectively.

The record date has been fixed as October 28, 2011.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

HDFC FMP 92D July 2011 (3): Dividend Declaration

HDFC Mutual Fund has announced dividend under the dividend option of HDFC FMP 92D July 2011 (3). The quantum of dividend will be the entire distributable surplus as on the record date.

The record date has been fixed as October 28, 2011.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Principal Conservative Growth Fund: Change of Name & Features

Principal Mutual Fund will rename Principal Conservative Growth Fund as Principal Retail Equity Savings Fund, with effect from November 25, 2011.

Asset Allocation Pattern
The scheme with the new name will allocate in the range of 65% to 100% in equity and upto 35% in debt and money market instruments. The only change from existing pattern will be a higher exposure to equity. The maximum limit has been increased from 80% to 100% and in case of debt, the minimum limit has been reduced from 20% to 0%.

Exit load will be revised to 1% if redeemed on or before 91 days from the date of allotment. Presently, it is 1% if redeemed within 365 days.

Benchmark
The benchmark will be changed to BSE 100 Index from Crisil Balanced.

No new investment in Dividend Option
Fresh investments through any mode will not be accepted under the dividend option of the scheme.

No Exit Load Period
Investors may exit the scheme between October 24, 2011 to November 25, 2011 without paying any exit load.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Taurus Liquid Fund: Dividend under Daily Dividend Option on all Calendar Days

Taurus Mutual Fund has commenced declaring dividend under the daily dividend option of Taurus Liquid Fund on all calendar days, with effect from October 22, 2011. Presently, it does not declare dividend in daily dividend option on Saturdays and other non business days.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Edelweiss Absolute Return Fund Declares Dividend of Rs. 0.18 per unit

Edelweiss Mutual Fund has announced dividend under the dividend option of Edelweiss Absolute Return Fund. The quantum of dividend will be Rs. 0.18 per unit. The record date has been fixed as October 28, 2011.

Since its launch in August 2009, the fund has declared two dividends. It declared a Rs. 0.18 per unit of dividend in July, 2011.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

ICICI Pru Annual Interval Plan IV & Quarterly Interval Plan A: Dividend Declaration

ICICI Prudential Mutual Fund has approved the declaration of dividend under the dividend option of ICICI Pru Interval Fund - Annual Interval Plan - IV & ICICI Pru Interval Fund II - Quarterly Interval Plan A.

The quantum of dividend will be Rs. 0.3855 per unit and Rs. 0.3895 per unit for Retail as well as Institutional option, respectively, of ICICI Pru Interval Fund - Annual Interval Plan – IV.

And for ICICI Pru Interval Fund II - Quarterly Interval Plan A, the quantum of dividend will be Rs. 0.2006 per unit and Rs. 0.2052 per unit for Retail as well as Institutional option, respectively.

The record date has been fixed as October 28, 2011.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

HDFC MF Launches FMP 370D November 2011(1)

HDFC Mutual Fund has introduced HDFC FMP 370D November 2011(1) - Series XIX. It will be open for subscription between November 4, 2011 to November 8, 2011.

The units of the schemes will be listed on NSE.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

DSP BlackRock Mutual Fund Launches 2 FMPs

DSP BlackRock Mutual Fund has launched two fixed term plans. DSPBR FTP - Series 1 - 24M will be open for subscription from 1-Nov-11 to 14-Nov-11. DSPBR FMP - Series 18 - 12M will be open for subscription between 2-Nov-11 to 03-Nov-11.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Escorts MF declares dividend in three schemes

Escorts Mutual Fund has approved the declaration of dividend under the following funds: Escorts Income, Escorts Short Term Debt and Escorts Income Bond. The quantum of dividend will be Rs. 0.07 under Income fund and Rs.0.1 under Short Term Debt and Income Bond respectively.

The record date is October 31, 2011.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

UTI Mastershare: Dividend Declaration

UTI Mutual Fund has announced 22 per cent dividend in UTI Mastershare. The record date of declaration is October 31, 2011.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

ICICI Prudential Quarterly Interval II Plan A:Dividend Declaration

ICICI Prudential Mutual Fund has announced dividends under the dividend options of ICICI Prudential Q Interval II Plan A. The quantum of dividend will be Rs.0.2101 per unit and Rs.0.2149 per unit for Retail as well as Institutional Options, respectively.

The record date has been fixed as October 31, 2011.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Birla Sun Life FTP Series CG: Dividend Declaration

Birla Sun Life Mutual Fund has announced dividend under the dividend option of Birla Sun Life FTP Series CG. The quantum of dividend will be Rs 0.8079 per unit.

The record date is October 31, 2011.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

SBI Debt Fund Series 90 Days - 48: Dividend Declaration

SBI Mutual Fund has announced dividend under the dividend option of SBI Debt Fund Series 90 Days - 48. The quantum of dividend will be 100% of the distributable surplus as on the record date.

The record date has been fixed as October 31, 2011.

Source: www.valueresearchonline.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

IOB Q2 net profit up at Rs 207 cr

Indian Overseas Bank (IOB) has reported a net profit of Rs 207 crore in the second quarter of FY12 as against Rs 206 crore in the corresponding quarter of last fiscal.

Net interest income jumped 32.43% to Rs 1,266 crore in the July-December quarter of FY12 versus Rs 956 crore in same quarter the previous year.

Total income increased 56.84% to Rs 4,822.56 crore from Rs 3,074.74 crore during the same period.

In the quarter ended September 2011, the bank has revised the base rate from 10.25 % to 10.75% for all advances linked to base rate.

On Friday, the share closed at Rs 97.80, up 3.6%.

Source: www.moneycontrol.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

TGB Q2 con net up 49% to Rs 77cr on higher sales

Tata Global Breverages' second quarter consolidated net profit rose 49% YoY to Rs 77 crore, helped by strong sales across global markets and price hikes taken in India.

Lower exceptional expenses and reduced interest cost also boosted profits in July September. The company’s total operating income in the second quarter was up 12% to Rs 1,630 crore.

During the quarter, TGB’s interest cost reduced to Rs 3.15 crore from Rs 14.38 crore a year ago due to restructuring of high cost debt. It also had lower exceptional cost of Rs 10.47 crore in July-September related to redundancy cost, business restructuring and long-term initiatives. In the year ago quarter, it had exceptional cost of Rs 32.38 crore.

“The group’s consolidated net profit is significantly higher than the year ago quarter mainly due to improved operation performance, favorable impact of exceptional items and lower interest cost, which partially offset commodity cost increases,” said managing director Percy Siganporia.

The company’s profit from operations before other income, interest and exceptional item rose to Rs 112.48 crore from Rs 104.11 crore. Raw material cost in the second quarter rose to Rs 706.38 crore compared with Rs 510.93 crore a year ago. Tea prices have remained firm in most markets and coffee prices also remained high YoY, although, they are down from an earlier high, he said.

TGB raised product prices in India in June-July to offset some of the cost increases. The company now sees raw tea prices easing over the next few months. But Siganporia said, prices of African tea remain high due to increase demand from Middle East and Russia.

In India, TGB said, it retained a volume leadership with a share of 19.7% while it is also gained value leadership with a share of 21.5%.

Separately, on Friday, TGB named Ajoy Mishra as its executive director. He will be based in UK and have additional responsibility of overseeing global beverage operations as deputy CEO. Mishra earlier was handling sales and marketing at another Tata group company – Indian Hotels.

Source: www.moneycontrol.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Sundaram Finance Q2 net profit up 21% to Rs 90.7 cr

Sundaram Finance has reported a net profit of Rs 90.7 crore in the second quarter of FY12, a growth of 21% as compared to Rs 75 crore in the previous quarter.

During the same period, income from operations increased to Rs 400 crore from Rs 389 crore.

Source: www.moneycontrol.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Steel Strips Wheels Q2 net profit up 14.5% at Rs 6.5 cr

Steel Strips Wheels has reported a net profit of Rs 6.5 crore in the second quarter of FY12, a growth of 14.5% as compared to Rs 7.6 crore in the corresponding quarter of last fiscal.

Net sales jumped 49% to Rs 234 crore from Rs 157 crore year-on-year.

Source: www.moneycontrol.com

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Head Dealer
DENIP Consultants Pvt Ltd

National Fertilisers Q2 net profit down 79% at Rs 9 cr

National Fertilisers has reported a net profit of Rs 9 crore in the second quarter of FY12, a fall of 79% as compared to Rs 43 crore in the corresponding quarter of last fiscal.

Net sales moved up 13% to Rs 1,760 crore from Rs 1,560 crore during the same period.

Source: www.moneycontrol.com

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Head Dealer
DENIP Consultants Pvt Ltd

Bharat Electronics Q2 net profit up 20% at Rs 125 cr

Bharat Electronics has reported a net profit of Rs 125 crore in the second quarter of FY12, a growth of 20.2% as compared to Rs 104 crore in the corresponding quarter of last fiscal.

Net sales moved up 10.5% to Rs 1,061 crore from Rs 960 crore year-on-year.

Source: www.moneycontrol.com

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Head Dealer
DENIP Consultants Pvt Ltd

Redington India Q2 cons net profit up 24.5% at Rs 61 cr

Redington India has reported a consolidated net profit of Rs 61 crore in the second quarter of FY12, a growth of 24.5% as compared to Rs 49 crore in the corresponding quarter of last fiscal.

Consolidated net sales jumped 39.8% to Rs 5,434 crore in the July-September quarter of FY12 as against Rs 3,887 crore in same quarter the previous year.

During the second quarter,

Objet Geometries AP Ltd. (OBJET), a global leader in 3D printing, has appointed the Redington as master distributor for their 3D printing systems and products across the country.

Molex Premise Networks, a global manufacturer of structured cabling systems has appointed Redington as a distributor for distribution of complete range of their product portfolio, including, PowerCat™ 5e, 6 and 6A structured cabling systems as well as optical fibre and Canobeam® Free Space Optics & MIIM Intelligent cabling systems.

Redington (India) has been appointed to distribute Vodafone branded Mobiles & Telecom products across India to the channel addressing the Retail space.

Polycom Asia Pacific Pte Ltd has appointed the Redington as a distributor for their audio & video conferencing products across India and other SAARC Region expect Pakistan and Afghanistan.

Source: www.moneycontrol.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

BEML Q2 net profit up 4% at Rs 15.3 cr

BEML has reported a net profit of Rs 15.3 crore in the second quarter of FY12, a growth of 4% as compared to Rs 14.7 crore in the corresponding quarter of last fiscal.

Net sales jumped 55.6% to Rs 792 crore in the July-September quarter of FY12 versus Rs 509 crore in the same period of FY11.

Total expenditure shot up 53% to Rs 770 crore from Rs 503 crore year-on-year.

In the second quarter,

The company has signed technical tie-up with Vosta LMG, Netherlands.

BEML has received orders worth Rs 230 crore for its mining equipment.

The company forayed into Thailand for export of mining equipments

Source: www.moneycontrol.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Astra Micro Q2 net profit up 81.6% at Rs 8.9 cr

Astra Microwave Products has posted a net profit of Rs 8.9 crore in the second quarter of FY12, a growth of 81.6% as compared to Rs 4.9 crore in the corresponding quarter of last fiscal.

Recently the company exited completely from M/s. Komoline Electronics Private Ltd, Ahmedabad through sale of company's equity investment held in that company for a consideration of Rs 5 crore. So, Komoline is no more a subsidiary of the company with effect from July 30, 2011.

Net sales of the company stood at Rs 38.5 crore in the July-September quarter of FY12 as against Rs 36.5 crore in same quarter the previous year.

Source: www.moneycontrol.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Indian Hotels posts net profit of Rs 8.1 cr in Q2

Indian Hotels has reported a net profit of Rs 8.1 crore in the second quarter of FY12 as against loss of Rs 6.3 crore in the corresponding quarter of last fiscal.

The company saw exceptional gain of Rs 9.6 crore during the July-September quarter of FY12 as against loss of Rs 5 crore in same quarter the previous year.

Exceptional item included a small forex loss (Rs 1 crore) and a profit of Rs 13 crore due to interest income on a deposit refund received consequent to surrender of leasehold land.

Net sales jumped 8.8% to Rs 358 crore from Rs 329 crore year-on-year. During the same period, EBITDA stood at 10.8% versus 11.1%.

The stock rose 2% to Rs 71.

Source: www.moneycontrol.com

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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

NHPC Q2 net profit up 40% at Rs 966 cr

National Hydroelectric Power Corporation ( NHPC ) has reported a net profit of Rs 966 crore in the second quarter of FY12, a growth of 40% as compared to Rs 690 crore in the corresponding quarter of last fiscal.

Net sales jumped 47.66% to Rs 1,831 crore in the July-September period of 2011 versus Rs 1,240 crore in same quarter the previous year.

The second quarter is a seasonally favorable quarter which contributes bulk of full-year earnings.

Total revenue shot up 54% to Rs 1,981.5 crore from Rs 1,282.6 crore year-on-year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 35% to Rs 1,416 crore from Rs 1,049 crore during the same period.

But, EBITDA margins grew at 71% in Q2FY12 - less as compared to 82% Q2FY11.

Employees cost during the July-September quarter of FY12 jumped 55% to Rs 204.6 crore from Rs 132.1 crore in the same period of previous year.

Even tax rate went up to 24.8% versus 19.1% year-on-year.

The stock gained 5% to Rs 24.85 post quarterly numbers.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Sesa Goa Q2 cons PAT down at Rs 1.28 cr

Sesa Goa has declared its second quarter results. The company's Q2 consolidated net profit was down at Rs 1.28 crore versus Rs 385 crore, year-on-year, YoY.

Its consolidated net sales were down at Rs 784 crore versus Rs 907 crore, year-on-year, YoY.

Its forex loss at Rs 234 crore versus gain of Rs 37.7 crore, YoY.

The company's consolidates other income was down at Rs 50.4 crore versus Rs 100 crore, YoY.

Its raw material costs was up at Rs 151 crore versus Rs 87.1 crore, YoY.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Dr Reddy's Laboratories Q2 net up 7.4% at Rs 308 cr

Pharmaceutical firm Dr Reddy's Labs has reported better than expected increase of 7.4% in consolidated net profit of Rs 308 crore for the second quarter of FY12 as against Rs 286.8 crore in the corresponding quarter of last fiscal.

Consolidated revenue surged 21.3% to Rs 2,268 crore from Rs 1,870 crore year-on-year.

Topline as well as bottomline came in better than estimates; CNBC-TV18 expected net sales of Rs 2,096 crore and net profit of Rs 270 crore.

But, operating profit margin grew at 16.5% in July-September quarter of FY12 as against 17.3% in same quarter the previous year.

Key Highlights

Consolidated revenues are at Rs 22.7 billion ($462 million) in Q2 FY12 versus Rs 18.7 billion ($381 million) in Q2 FY11, year-on-year growth of 21%. Consolidated revenues for H1 FY12 is at Rs 42.5 billion ($866 million).

Revenues from Global Generics for Q2 FY12 are at Rs 16.1 billion ($329 million). Year-on-year growth of 18% mainly driven by North America and Russia.

Revenues from PSAI are at Rs 5.9 billion ($121 million) in Q2 FY12, growth of 28% over previous year.

Adjusted EBITDA of Rs 5.1 billion ($104 million) in Q2 FY12, is at 23% of revenues recording year-on-year growth of 20%. Consolidated adjusted EBITDA for H1 FY12 is at Rs 9.4 billion ($193 million).

Adjusted Profit after Tax for Q2 FY12 is at Rs 3.1 billion ($63 million), is at 14% of revenues with year-on-year growth of 8%. Consolidated adjusted PAT for H1 FY12 is at Rs 5.6 billion ($115 million).

During the quarter, the company launched 28 new generic products, filed 17 new product registrations and filed 11 DMFs globally.

Dr. Reddy’s today announced the final approval of its olanzapine 20 mg tablets, the generic version of Eli Lilly’s Zyprexa® from the USFDA.

Recommendations

Rakesh Bansal for rakeshbansal.com is positive on Dr Reddys. Investors should buy Dr Reddys with a target of Rs 1610 and stoploss is Rs 1515.

The stock shut shop at Rs 1,579.60, up Rs 35.10, or 2.27%. It touched an intraday high of Rs 1,587.95 and an intraday low of Rs 1,550.00

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Kotak Mahindra Bank Q2 cons net up 25% at Rs 433 cr

Private sector lender Kotak Mahindra Bank has reported consolidated net profit of Rs 433 crore in the second quarter of FY12, a growth of 25% as compared to Rs 346.1 crore in the corresponding quarter of last fiscal.

Consolidated net interest income shot up 31.5% to Rs 959 crore in July-September quarter of FY12 as against Rs 729 crore in same quarter the previous year.

Numbers were in line with estimates - CNBC-TV18 expected net profit of Rs 437 crore and net interest income of Rs 953 crore.

Gross non performing assets (NPAs) stood at 1.38% in the quarter ended September FY12 as against 1.59% in the previous quarter. During the same period, net NPAs declined at 0.46% versus 0.54%.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Delta Corp Q2 cons PAT down 58% at Rs 4.93 cr QoQ

Delta Corp has reported a consolidated profit after tax of Rs 4.93 crore for the second quarter of FY12, a fall of 58% as compared to Rs 11.8 crore in the previous quarter.

Net sales too fell nearly 46% to Rs 49.45 crore from Rs 91.1 crore quarter-on-quarter.

Disappointing numbers were due to no real estate income in the July-September quarter of FY12. In the earlier quarter, the company had sold Delta Centre to World Bank for Rs 110 crore, but it realized only 10% of the total i.e Rs 11 crore. It also received Rs 50 crore from Pune land sale.

Delta Corp said that they had realized only 10% last quarter from Kenya land sale and left would be realized in Q2 – but there were no signs in in Q2.

EBITDA for the quarter ended September FY12 slipped to Rs 12.9 crore from Rs 32 crore in the previous quarter. EBITDA margin stood at 26.2% as against 35.1% during the same period. PAT margin was at 10% versus 13%.

Segmental Revenue

Real estate revenues fell sharply to Rs 11.6 crore from Rs 63 crore. However, revenues from hospitality and gaming business increased to Rs 37.54 crore from Rs 27.8 crore. Lease rental revenues came in at Rs 70 lakh as against Rs 69 lakh quarter-on-quarter.

Segmental EBIT

Real estate EBIT declined drastically to Rs 4.97 crore from Rs 26.6 crore quarter-on-quarter. EBIT from lease rental too slipped to Rs 33 lakh versus Rs 1.34 crore. However, EBIT from hospitality and gaming business jumped to Rs 7.18 crore from Rs 4.6 crore.

Delta Corp's gaming business has been strong. Sales have gone up over 30%.

The company has received all clearances from Goa government. It is looking to sign deals in Damam and Sri Lanka.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

VIP Industries Q2 cons PAT down 13.5% to Rs 10.9 cr

VIP Industries has reported a consolidated profit after tax of Rs 10.9 crore in the second quarter of FY12, a fall of 13.5% as compared to Rs 12.6 crore in the corresponding quarter of last fiscal.

However, total revenue jumped 16.3% to Rs 174 crore from Rs 149.6 crore and EBITDA increased 1.5% to Rs 19.7 crore from Rs 19.4 crore year-on-year.

Total expenditure went up 18.4% to Rs 158.5 crore in the July-September quarter of FY12 from Rs 133.9 crore in same quarter the previous year.

Interest cost declined to Rs 30 lakh from Rs 80 lakh during the same period. Tax shot up 79% to Rs 4.3 crore from Rs 2.4 crore year-on-year.

Tax rate in the second quarter of FY12 was 28.3% as against 16% in Q2FY11.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Titan Q2 net profit up 16% at Rs 148.2 cr

Watch manufacturer Titan Industries has reported a rise of 16% year-on-year in net profit of Rs 148.2 crore for the second quarter of financial year 2011-12 as against Rs 127.8 crore in the corresponding quarter of last fiscal. Profit was below expectations; CNBC-TV18 poll saw net profit at Rs 161 crore.

Net sales shot up 36.5% to Rs 2,096.3 crore in the July-September quarter of FY12 as against Rs 1,536 crore in same quarter the previous year, which was in-line with estimates. CNBC-TV18 had expected sales at Rs 2,093 crore.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

GAIL's Q2 net up 18%, ballooning under-recoveries an issue

Gas Authority of India Ltd ( GAIL ) has posted a net profit of Rs 1,094 crore for the July-Sep quarter of FY12, up 18.45% from the year-ago period. Sales of the company also rose 20% at Rs 9,699 crore. These results were marginally ahead of CNBC-TV18 poll which estimated net profit to be at Rs 1030 crore and sales at Rs 9450 crore.

The company said it's fuel subsidy burden for the quarter increased to Rs 567 crore versus Rs 347 crore YoY. Being an upstream company, GAIL had to bear 33% of the under-recoveries which oil marketing companies incur by selling petroleum products below cost.

Meanwhile, the company's gross margins increased by 12% to Rs. 1,792 crore YoY. The company in an earnings statement said that during the, revenues from LPG and Liquid Hydrocarbons business increased by 34% to Rs. 988 crore while that from natural gas trading increased by 20% to Rs. 7,575 crore. Sales from petrochemicals business have seen a rise of 30% at Rs. 938 crore Y-o-Y.

The company said it has planed a capex of Rs 7,200 crore and it is also planning to raise USD 300 million via overseas borrowing. GAIL whiich owns India's biggest gas pipeline network of about 8,700 kilometres, aims to buy four spot liquefied natural gas (LNG) cargoes in the December quarter,

GAIL is also the country's largest gas marketing, transmission and distribution company. It is the principal marketer for the LNG that Petronet LNG imports at Dahej terminal in Gujarat.

In addition, GAIL is a promoter of Ratnagiri Gas and Power Ltd (Dabhol) that owns a near-complete 5 million tons a year import facility on the Maharasthra coast.

Besides having rights for 3 million tons per annum of the import capacity at RGPPL, GAIL is also the agency designated for sourcing LNG requirement for the Ratnagiri LNG Terminal.

Meanwhile, shares of the company closed the day at Rs 425.35,up 1.75% on the Bombay Stock Exchange.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

Wednesday, October 26, 2011

Happy Diwali and a Prosperous New Year

Dear All,

Here's wishing everyone a Very Happy Diwali and a Prosperous New Year!! May this Diwali bless with you with all the happiness in the world.

This last year has not been too kind for investors in the stock market but Gold and Fixed deposits along with FMPs has worked out just well. For the coming year following are some of the interesting bets:

1) Commodities to watch:

      a) Silver - Any downward movement in the equity market will directly lead Silver higher and I still believe that above 55K - 56K will take it to 65K - 70K which is a 25% - 30% rally.

      b) Gold - Best tool to fight against inflation and Equity market under-performance. I believe that at 26K - 27K Gold is still a buy but any rally to 32K - 35K should be used to book out profits in it. Again another 30% upside.

      c) Copper - If the equity markets do perform well this will be the commodity to watch out for. I believe that with a 2 year perspective investors should  slowly start accumulating this commodity.

      d) Sugar - This is a rather short term trading bet and I believe that It could soon see a 20% rally at the very least.

2) MF Investments:

I believe that all investors should get a SIP going with a 2 year perspective to earn an average of 20% - 30% rally. Following are the schemes that one can look at / diversify into:

      a) HDFC TOP 200
      b) HDFC Prudence
      c) DSP Top 100 Equity
      d) DSP World Gold Fund
      e) BSL Dividend Yield Plus
      f) BSL Tax Relief 96
      g) Reliance MIP
      h) Kotak Gold Fund

This portfolio should even be considered for any investors looking to invest over the next 20 years too.

3) Equity Market Investments:

I believe that this route of investments has under-performed since the past 1 year and will continue to do so over the next 2 quarters. However investors looking to put in money with a 2 year perspective could look at the following sectors / stocks:

      a) Cement Sector (ACC, Ambuja Cement, Ultratech Cement etc.)
      b) Auto Sector ( M&M, Tata Motors)
      c) Banking Sector (SBI, Yes Bank, ICICI Bank)
      d) Pharmaceutical Sector (Dr. Reddy, Lupin, Fortis, Cipla)
      e) Delta Corp
      f) Bajaj Financial Services

4) Real Estate Investments:

This could be one of the trickiest investments to make right now. I personally believe that this a sector one should avoid for any investments at least till the next few quarters. This sector could see a major dip in prices if sales drop.

5) Fixed Income Investments:

Over the next 3 quarters investors should look to exit from FMP / FDs and start moving to balanced funds / monthly income plans. Then look to shift to direct equity investments. One could even look at investing in to GILT Funds.

Once again wish you a very Happy Diwali and a prosperous new year!

Thanks,
Dewang K Mehta

DENIP Consultants

Monday, October 24, 2011

Sterlite Industries Q2 net profit down 1% to Rs 998 cr

Vedanta group company Sterlite Industries has posted a net profit of Rs 998 crore in the second quarter of FY12, a fall of 1% as compared to Rs 1,008 crore in the corresponding quarter of last fiscal. This was way below expectations because of fores loss; CNBC-TV18 poll saw net profit at Rs 1,445 crore.

Forex loss for the July-September quarter stood at Rs 466.2 crore and Interest & finance charge was at Rs 356 crore.

Net sales jumped 68% to Rs 10,134 crore from Rs 6,029 crore year-on-year.

During the same period, the company's EBITDA margin came in at 23.9% as against 24.4%.

Sterlite Industries' board members approved merger of Sterlite Opportunities & Ventures with company.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

FMCG sales push ITC Q2 net up 21%; hotel growth slows

ITC 's second quarter net profit surged a better than expected 21.5% year-on-year at Rs 1,514.31 crore, helped by strong sales, especially in cigarettes and other FMCG business. Lower losses in the other FMCG business also boosted overall earnings.

The cigarettes to hotels to FMCG major said net sales for the July-September quarter rose 17.5% from a year ago at Rs 5,974.18 crore.

Analysts on average had expected a net profit of Rs 1,470 crore on revenue of Rs 5,945 crore, according to a CNBC-TV18 poll.

Overall operating margins for the company were at 35.28% in July-September, compared with 35.35% earlier.

ITC's total expenses during the quarter rose near 17% from a year ago at Rs 4,036.38 crore.

While there was strong growth across most segments, net sales in ITC's hotels division rose just 1% at Rs 211.14 crore as second quarter is seasonally a weak quarter for the hotel industry. Hotel segment profit was up 9% at Rs 43.44 crore.

The continued economic turmoil in US and Europe, the two key source markets, and the slowdown in Indian economy also hurt the hospitality industry, the company said.

"With a lower level of demand on one hand and significant additions to supply in key markets on the other, the hospitality industry in India is witnessing a challenging period," ITC said.

The company, though, maintains positive long-term outlook for the Indian hotel industry and said several new projects including joint ventures and management contracts are on the anvil to rapidly scale up the business.

Construction of new super luxury hotels in Chennai, Kolkata and Classic Golf Resort near Gurgaon are progressing satisfactorily, ITC said.

Meanwhile, net sales of cigarettes, ITC’s bread and butter, rose over 16% at Rs 2,968.14 crore in the three-month period. Other FMCG sales jumped 27% year-on-year at Rs 1,340.66 crore, it said Monday.

The quarter also saw losses in the company’s other (non-cigarette) FMCG business decline 16% at Rs 55.90 crore.

Amongst ITC’s other divisions, agri business net sales rose near 13% year-on-year at Rs 1,434.54 crore. Agri business profit was up 15% from a year ago to Rs 238.8 crore.

"This impressive performance (in agri business) was primarily driven by higher trading volumes and improved realisations in soya, wheat and coffee," ITC said.

Paper, paperboards and packaging division net sales were up 9.4% at Rs 1,005.42 crore in the second quarter, while segment profit rose 18% from a year ago at Rs 289.70 crore.

While the packaging and printing business continues to provide strategic sourcing support to cigarettes, foods and personal care businesses, sales to external sales also saw "robust" growth, ITC said.

The company is making significant investments in new technologies to cater to growing demand for value-added packaging among consumer electronics and FMCG companies.

ITC shares closed up 1.4% at Rs 206.95 on NSE on Monday.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd