Issue Details:-
Issue Opens On 14th June 2010(For All Bidders)
Issue Closes On 16th June 2010 (For QIB Bidders) and 17th June 2010 (For Retail and Non-Institutional Bidders(including Eligible Employees Bidding in the Employee Reservation Portion).
Price Band Rs. 75 to Rs. 85 per share.
Bid Lot 80 Equity Shares and in multiples of 80 thereon.
Issue Size Total - Rs. 200 cr.
BRLMs - Avendus, ICICI Sec, SPA.
Syndicate Member - Relaince Securities Ltd, India Infoline Ltd, SPA Securities Ltd & Avendus Securities Ltd.
Thanks,
Nimesh.
Thursday, June 10, 2010
Standard Chartered PLC - Listing on 11 June 2010.
Standard Chartered PLC IDR will be listing at BSE / NSE on June 11, 2010.
The issue price of the same is Rs. 104/- ( A discount of Rs.5.20 being 5% to the issue price determined pursuant to the completion of the Book Building process has been offered to the Retail Individual Bidders and the Eligible Employees whose bid amount does not exceed Rs.100000).
Thanks,
Nimesh.
The issue price of the same is Rs. 104/- ( A discount of Rs.5.20 being 5% to the issue price determined pursuant to the completion of the Book Building process has been offered to the Retail Individual Bidders and the Eligible Employees whose bid amount does not exceed Rs.100000).
Thanks,
Nimesh.
Japan revised Q1 GDP beats forecast
The strong economic growth in the first quarter can be explained almost entirely by the effect of government stimulus measures and strong exports.Gross domestic product grew a revised 1.2% in the first quarter, matching the preliminary reading and more than the median forecast of a 1.0% expansion. The revised figure translates into annualized growth of 5.0%, slightly more than the initial reading of 4.9%. The median forecast was for 4.2% annualized growth.Capital expenditure rose 0.6% in the first quarter, revised down from a preliminary 1.0% increase but bigger than the market forecast of a revised 0.2% gain.Wholesale prices rose 0.4% in the year to May, marking the first annual rise in 17 months, but the rise was due mostly to higher energy costs, Bank of Japan data showed on Thursday. Japan pulled out of recession in April-June last year, helped by firm exports to Asia and firmness in consumption due to the government's stimulus measures, which included subsidies on energy-efficient cars and consumer electronics.
The subsidies are scheduled to expire by the end of this year and economists say the weak labour market means that gains in consumption are likely to slow. Japanese companies have ramped up factory output due to overseas demand, but have been reluctant to invest in new plant and equipment on doubts about the strength of domestic demand. But analysts say growth is likely to slow later this year as gains in consumption could moderate due to a lackluster jobs market, while the impact of government stimulus spending is also seen wearing off. Europe's debt crisis also casts doubt on the outlook for Japan's exports to that region.
Prepared by:
Kartik gala
(Business development)
The subsidies are scheduled to expire by the end of this year and economists say the weak labour market means that gains in consumption are likely to slow. Japanese companies have ramped up factory output due to overseas demand, but have been reluctant to invest in new plant and equipment on doubts about the strength of domestic demand. But analysts say growth is likely to slow later this year as gains in consumption could moderate due to a lackluster jobs market, while the impact of government stimulus spending is also seen wearing off. Europe's debt crisis also casts doubt on the outlook for Japan's exports to that region.
Prepared by:
Kartik gala
(Business development)
Wednesday, June 9, 2010
Who Benefits?-Shareholding norms revised
Source :Bloomberg,ENAM research
Posted By :
KARTIK GALA
(Business Development)
Markets Today - 8/6/2010 - Disclaimer Post applies
Higher call writing and concentration witnessed at 5,100 and 5,000 indicates weakness at current levels and these levels to act as a major resistance. We believe markets to trade in the narrow range of 5,100 and 4,900 for near term and 4,800 as a worst case scenario for June series.
Option Analysis
· Call Writing: Fresh addition of open interest was observed at 5,100 and 5,000 strike prices of 8.86 lakh and 6.14 lakh contracts respectively. In today’s trading session, we have observed shift in concentration from 5,300 to 5,100 strike price where the total open interest build up is 64.54 lakh contracts.
· Put Writing: In today’s trading session, major shedding in open interest was observed at 5,000 strike price of 6.14 lakh contracts with fresh writing at 4,500 strike of 4.81 lakh contracts. Major concentration of open interest is observed at 4,800 strike price of 76.41 lakh contracts.
Implications: Consecutive second trading session of higher activity witnessed in call than put and shedding in put options at at-the-money and in-the-money strike prices would invite further selling pressure at current levels. We expect the markets to trade in the range of 5,100 and 4,800 for June series on account of concentration.
FIIs and DIIs activity in capital market segment
· FIIs were net sellers of Rs 242 crore with Gross buyers of Rs 1,730 crore and Gross Sellers of Rs 1,973 crore.
· DIIs were net buyers of Rs 41 crore with Gross buyers of Rs 1,074 crore and Gross sellers of Rs 1,033 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 8th June, 2010 close at 28.77 which is 2.79% higher as compared to previous close, after touching an intraday high of 29.38 and low of 27.21.
Tuesday, June 8, 2010
Bharti Airtel is now World’s fifth Largest Telecom Company
India's top telecom player Bharti Airtel on Tuesday has successfully concluded its $10.7 billion deal to acquire the African assets of Kuwait's Zain making it the world's fifth largest mobile phone services company.The transaction is the largest ever cross-border deal in an emerging market and will result in combined revenues of about $13 billion.Zain Africa will be renamed Bharti Airtel International BV and 15 top Zain executives will move to India. Debt for Zain and Bharti's 3G spectrum combined stands at $10 bn. Combined interest outgo for Bharti would be $200 mn annually. Will use Zain expertise in running 3G operations
This is also the largest overseas acquisition of assets in Africa by an Indian company, even though it does not cover the Kuwaiti company's operations in Sudan and Morocco. The total customer base of Bharti now stands at over 180 million in 18 countries.African operations will not be profitable immediately and will not go to middle east.The closure of the deal implies that Bharti has received all the approvals from the governments and regulators of each of these 15 nations.
a 40-member management team from Bharti Airtel headed by its CEO for international operations, Manoj Kohli will soon relocate to Kenyan capital Nairobi, the city chosen by the Telco to base its African headquarters. This management team will work with Zain's top executives in all 15 countries where it offers services in Africa and oversee its operations.
With Zain Africa's 42 million customers, Bharti Airtel will have over 180 million subscribers, making it the world's fifth-largest mobile phone operator. The deal will also give Bharti a firm foothold in the relatively untapped African market and the combine will have revenues of $13 billion and earnings before interest, taxes, depreciation and amortization of around $5 billion.
This was Bharti's third attempt to enter the largely untapped African market after the failure of merger pacts with South African telecom major MTN on two occasions. Africa accounts for a little over 60 percent of Zain's 71.8 million customers. The $10.7-billion deal, including $1.7 billion of Zain's debt, was signed in Amsterdam, the base of Zain's African unit on March 30.
The tariff war that has plagued India's telecoms space over the last one year has lowered profits and valuations of most mobile firms in India, forcing the likes of Bharti Airtel to look for attractive options outside the country. Looking for better deals than those being offered by its existing partners.
Bharti has invited bids for IT-related services as well as the management and maintenance of mobile and landline networks in fifteen nations as it looks to replicate the success of its low-cost model of operations in Africa."The three big Indian IT firms (TCS, Infosys and Wipro) along with IBM are in the race as Bharti Airtel is looking for the best deal.
Ericsson and Nokia Siemens, which maintain and manage Bharti Airtel's networks in India through multi-billion-dollar contracts, are not guaranteed similar deals with Zain. Nokia, Siemens and Ericsson will have to compete with China's ZTE and Huawei and bids have already been called for. While Bharti has maintained it will take its partners along when it goes overseas, it has also been open to engaging with new vendors who offer a better deal. For instance, Bharti awarded the contract to build, manage and maintain its networks in Sri Lanka to China's Huawei. Bharti is now among the five largest mobile operators in the world. This will further strengthen the historic Indo-Africa economic and social ties and provide a big boost to South-South cooperation
The African countries in which assets have been acquired are Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia. Zain is the market leader in 10 of the 15 countries and second in four countries.Of the $8.3 billion paid to Zain, Bharti has raised debt from a consortium of foreign banks and State Bank of India with the lead-arranger and lead-advisor Standard Chartered Bank committing the highest amount -- $1.3 billion, followed by Barclays at $900 million. The rest of the co-advisors -- ANZ, BNP, Bank of America-Merrill Lynch, Credit Agricole CIB, DBS, HSBC, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation -- have allocated $600 million each.
Posted By:
KARTIK GALA
(Business Development)
Markets Today - 7/6/2010 - Disclaimer Post Applies
Shedding of put at higher levels and call writing indicates market to trade in a narrow range of 4,900 and 5,100 for near term and 4,800 for worst case scenario in June series. So the strategy to be adopted by traders to sell CE at 5,300 and PE of 4,800 or Cash traders can initiate fresh Buy when market is closer to 4,900 and sell at 5,100.
Option Analysis
· Call Writing: Fresh writing of 9.69 lakh shares and 6.81 lakh shares was observed at 5,300 and 5,000 strike prices respectively. We believe 5,200 to act as intermediate resistance and 5,300 for June series on account of major activity taking place and concentration of 65.47 lakh shares.
· Put Writing: On the other hand, fresh writing of put was observed at 4,900 and below whereas shedding was observed at 5,000 and above. Major writing was observed at 4,800 of 8.39 lakh shares and major shedding at 5,000 of 8.39 lakh shares. Concentration of open interest is observed at 4,800 level.
Implications: Put shedding at 5,100 and 5,000 levels indicates that weakness would be seen at higher levels with buying interest emerging at lower levels. We expect the markets to trade in the range of 5,300 and 4,800 for June series on account of concentration and 4,800 worst case scenario on account of heavy put writing
FIIs and DIIs activity in capital market segment
· FIIs were net sellers of Rs 403 crore with Gross buyers of Rs 1,625 crore and Gross Sellers of Rs 2,028 crore.
· DIIs were net sellers of Rs 202 crore with Gross buyers of Rs 795 crore and Gross sellers of Rs 997 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 7th June, 2010 close at 27.99 which is 13.23% higher as compared to previous close, after touching an intraday high of 28.48 and low of 24.21.
Implications: Volatility surged today till ~28 levels after closing negative for past 3 trading sessions. We expect volatility to come down further and thus suggest going short on the same.
Monday, June 7, 2010
ELSS mutual fund
Most of the tax saving instruments that fall under Section 80C is saving oriented with returns after adjusting for inflation. The exceptions are the ULIPs (Life and pension funds) and the ELSS (Equity linked savings scheme) mutual funds.
The basic advantage of opting for ELSS as compared to the ULIPs is the frequency—mostly a single investment or a monthly investment for a year—and term for investment, for getting good returns.
1. What is an ELSS?
ELSS is a mutual fund that has to invest a minimum of 80 per cent in equity shares. The balance 20 per cent can be in debt, money market instruments, cash or even more equity.
There is a 3 year lock-in period for the ELSS mutual funds. Post the 36 months, the funds remain invested and work like any other open-ended mutual fund.
2. What are the advantages?
The return (maturity and the dividend [if opted for]) from the ELSS is also tax free under the present EEE (Exempt–Exempt–Exempt) regime.
The 3 year lock-in period ensures that you don’t withdraw your investments. Generally in a normal mutual fund the tendency to withdraw in case of any monetary requirement is more.
The lock-in period also helps the fund managers to plan their investments better and also to hold on to valuable investments as they do not have to worry about sudden redemption pressures.
3. Which one to pick?
Our Recommendations:
4. What are the limitations?
The investment in an ELSS cannot be switched or closed before the 3 years are completed from the date of investment. During market downturns, this becomes a limitation as you can't do anything much except watch the funds go down. You do have the option of averaging when the market goes down, but an investment to save tax may not be required when the market is on a downslide.
The lock-in works negatively for the monthly investment as well. Since the lock-in period is calculated from the date of the investment and not from the date the scheme was started, the 12th month’s investment can be withdrawn only on the 48th month. This is a disadvantage compared to ULIPs, where the lock-in is from the date of start of the scheme.
5. What’s the final verdict?
Most fund houses start an ELSS regular investment at Rs.500/- per month. Single investments start generally at Rs.5000/-. This makes ELSS accessible to all tax payers. With the compulsory lock-in giving better returns than other investments, even the most risk averse can look at an exposure to the ELSS fund for their tax benefits.
Prepared By:
KARTIK GALA
(Business Development)
The basic advantage of opting for ELSS as compared to the ULIPs is the frequency—mostly a single investment or a monthly investment for a year—and term for investment, for getting good returns.
1. What is an ELSS?
ELSS is a mutual fund that has to invest a minimum of 80 per cent in equity shares. The balance 20 per cent can be in debt, money market instruments, cash or even more equity.
There is a 3 year lock-in period for the ELSS mutual funds. Post the 36 months, the funds remain invested and work like any other open-ended mutual fund.
2. What are the advantages?
It is an established fact that in the long run equity gives a much higher inflation adjusted returns when compared to any other investment (except for maybe real estate). The top 5 ELSS funds have given returns from 22 per cent to 26 per cent compounded annually over the past 5 years. This is again higher than the market (Nifty) returns over the past 5 years which is at 19 per cent.
ELSS is part of the Section 80C instruments which are cumulatively eligible for a deduction from income up to Rs.1 Lakh. This gives the tax payers benefits from 10 per cent to 30 per cent (excluding the educational cess) based on their current tax slab.The return (maturity and the dividend [if opted for]) from the ELSS is also tax free under the present EEE (Exempt–Exempt–Exempt) regime.
The 3 year lock-in period ensures that you don’t withdraw your investments. Generally in a normal mutual fund the tendency to withdraw in case of any monetary requirement is more.
The lock-in period also helps the fund managers to plan their investments better and also to hold on to valuable investments as they do not have to worry about sudden redemption pressures.
The returns achieved by an ELSS fund have consistently been higher as compared to the market returns. Only some sector based mutual funds have given better returns than the ELSS fund in the past 5 years.
3. Which one to pick?
If you are on a tight budget, opting for a monthly investment (SIP using ECS) makes complete sense. The automatic investment from the bank through ECS makes it an easy way to invest.
In case if you are looking for an income in between, you can opt for the dividend option. This is particularly suitable for senior citizens. Also, the ELSS gives a tax free return compared to a bank or company deposit, which is taxable.Our Recommendations:
The investment in an ELSS cannot be switched or closed before the 3 years are completed from the date of investment. During market downturns, this becomes a limitation as you can't do anything much except watch the funds go down. You do have the option of averaging when the market goes down, but an investment to save tax may not be required when the market is on a downslide.
The lock-in works negatively for the monthly investment as well. Since the lock-in period is calculated from the date of the investment and not from the date the scheme was started, the 12th month’s investment can be withdrawn only on the 48th month. This is a disadvantage compared to ULIPs, where the lock-in is from the date of start of the scheme.
5. What’s the final verdict?
Most fund houses start an ELSS regular investment at Rs.500/- per month. Single investments start generally at Rs.5000/-. This makes ELSS accessible to all tax payers. With the compulsory lock-in giving better returns than other investments, even the most risk averse can look at an exposure to the ELSS fund for their tax benefits.
Prepared By:
KARTIK GALA
(Business Development)
Saturday, June 5, 2010
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