Container Corporation of India declined 3.80% to Rs 670 at 9:56 IST on BSE, despite net profit surging 28.48% to Rs 223.68 crore in Q2 September 2008 over Q2 September 2007.
The stock hit a high of Rs 695 so far during the day. The stock hit a low of Rs 670 so far during the day, which is a 52-week low for the counter. The stock has a 52-week high of Rs 1100 on 29 October 2007.
The stock had tumbled ahead of the results in a weak market. From a recent high of Rs 836.95 on 6 October 2008, the stock declined 16.78% to Rs 696.50 on 15 October 2008.
The company’s current equity is Rs 129.98 crore. Face value per share is Rs 10.
The current price of Rs 670 discounts the company’s Q1 June 2008 annualized EPS of Rs 62.11, by a PE multiple of 10.79.
Container Corporation of India (Concor)’s total income rose 11.23% to Rs 951.37 crore in Q2 September 2008 over Q2 September 2007.
Concor, a central government public sector undertaking under Ministry of Railways, is primarily engaged in container rail transportation business, inland container depot (ICD) operations, warehousing and road transportation. Concor also provides transit warehousing for Exim (export and import) cargo, bonded warehousing and provides air cargo facilities.
Thursday, October 16, 2008
Wednesday, October 15, 2008
Liquidity crunch: MFs put cap on redemption
16 Oct, 2008, 0030 hrs IST,Pooja Meswani & Reena Zachariah, REUTERS
MUMBAI: The liquidity crunch in money markets is exacting a heavy toll on some small fund houses that have been hit by massive redemption pressures. ABN Amro MF has now put a cap on redemption on its long-term FMP schemes. All investors in these schemes can redeem only Rs 1 lakh per folio per day.
“As a short-term measure, the trustees of the mutual fund, in order to safeguard the interest of the investors who want to remain invested till the maturity of the long-term FMPs, today have decided to limit the redemption to 5% of the size of these schemes per day, with a further limit of Rs 1 lakh per investor, per day,” said ABN Amro India-AMC managing director Nikhil Johri.
What is making matters worse for ABN Amro is that its schemes are in the no-load period for a month, due to the recent change in management control. This makes it all the more easy for investors to pull out their funds.
In the offer document (OD), mutual fund houses mention that the trustees can under unforeseen market circumstances limit redemptions temporarily. According to industry players, trustees of many mutual funds have instructed distributors that redemptions for all fixed income schemes should be paid only within 10 days from the date of redemptions.
Another fund that appears to be under stress, according to market sources, is Edelweiss Mutual. The fund has seen the asset size of its maiden liquid scheme launched last month, shrink from Rs 730 crore to nearly Rs 230 crore.
Mirae Asset Management Company, a fund into its second year of operations in India, failed to report the net asset values (NAV) of its two liquid schemes — Mirae Asset Liquid Fund & Mirae Asset Liquid Plus Fund — on October 14. The company refused to comment on the development.
Due to tightness in the money market, the AMC may have found it difficult to sell securities to raise the required amount. Unable to settle accounts at the end of the day, the AMC would not have reported the NAVs of the two schemes.
Experts say in extreme situations, certain securities like government bonds or corporate debt papers may become illiquid. A fund house may not be able to sell securities immediately, and so, cannot raise money to return to investors in the case of higher than usual redemption requests.
As on 30 September, Mirae’s assets stood at about Rs 2,309.8 crore. Of which, close to Rs 1,864 crore is in liquid and liquid-plus funds. Sources say the size of these assets have plunged in the past 10 days, and the fund is now unable to meet redemption requests. The AMC, however, has reported NAVs of both the schemes for October 15.
MUMBAI: The liquidity crunch in money markets is exacting a heavy toll on some small fund houses that have been hit by massive redemption pressures. ABN Amro MF has now put a cap on redemption on its long-term FMP schemes. All investors in these schemes can redeem only Rs 1 lakh per folio per day.
“As a short-term measure, the trustees of the mutual fund, in order to safeguard the interest of the investors who want to remain invested till the maturity of the long-term FMPs, today have decided to limit the redemption to 5% of the size of these schemes per day, with a further limit of Rs 1 lakh per investor, per day,” said ABN Amro India-AMC managing director Nikhil Johri.
What is making matters worse for ABN Amro is that its schemes are in the no-load period for a month, due to the recent change in management control. This makes it all the more easy for investors to pull out their funds.
In the offer document (OD), mutual fund houses mention that the trustees can under unforeseen market circumstances limit redemptions temporarily. According to industry players, trustees of many mutual funds have instructed distributors that redemptions for all fixed income schemes should be paid only within 10 days from the date of redemptions.
Another fund that appears to be under stress, according to market sources, is Edelweiss Mutual. The fund has seen the asset size of its maiden liquid scheme launched last month, shrink from Rs 730 crore to nearly Rs 230 crore.
Mirae Asset Management Company, a fund into its second year of operations in India, failed to report the net asset values (NAV) of its two liquid schemes — Mirae Asset Liquid Fund & Mirae Asset Liquid Plus Fund — on October 14. The company refused to comment on the development.
Due to tightness in the money market, the AMC may have found it difficult to sell securities to raise the required amount. Unable to settle accounts at the end of the day, the AMC would not have reported the NAVs of the two schemes.
Experts say in extreme situations, certain securities like government bonds or corporate debt papers may become illiquid. A fund house may not be able to sell securities immediately, and so, cannot raise money to return to investors in the case of higher than usual redemption requests.
As on 30 September, Mirae’s assets stood at about Rs 2,309.8 crore. Of which, close to Rs 1,864 crore is in liquid and liquid-plus funds. Sources say the size of these assets have plunged in the past 10 days, and the fund is now unable to meet redemption requests. The AMC, however, has reported NAVs of both the schemes for October 15.
Sanwaria Agro Oils strong Q2 numbers
Sanwaria Agro Oils rose 3.47% to Rs 37.30 at 15:07 IST on BSE, as net profit jumped 56.02% to Rs 22.07 crore in Q2 September 2008 over Q2 September 2007.
The company announced the results during trading hours today, 15 October 2008.
The stock hit a high of Rs 39 and a low of Rs 36 so far during the day. The stock has a 52-week high of Rs 55.50 on 23 May 2008 and a 52-week low of Rs 17.06 on 8 November 2007.
The company’s current equity is Rs 17.40 crore. Face value per share is Rs 1.
The current price of Rs 37.30 discounts the company’s Q1 June 2008 annualized EPS of Rs 9.57, by a PE multiple of 3.90.
Sanwaria Agro Oils’ net sales increased 54.93% to Rs 312.21 crore in Q2 September 2008 over Q2 September 2007.
The company is engaged in extracting, refining and trading of soya oil and soyameal. The products include soyabean crude oil, edible oil, soyameal and soya flour. The company is also exploring diversification into production of pollution free bio-diesel from non-edible oils available in India to strengthen national energy security.
The company announced the results during trading hours today, 15 October 2008.
The stock hit a high of Rs 39 and a low of Rs 36 so far during the day. The stock has a 52-week high of Rs 55.50 on 23 May 2008 and a 52-week low of Rs 17.06 on 8 November 2007.
The company’s current equity is Rs 17.40 crore. Face value per share is Rs 1.
The current price of Rs 37.30 discounts the company’s Q1 June 2008 annualized EPS of Rs 9.57, by a PE multiple of 3.90.
Sanwaria Agro Oils’ net sales increased 54.93% to Rs 312.21 crore in Q2 September 2008 over Q2 September 2007.
The company is engaged in extracting, refining and trading of soya oil and soyameal. The products include soyabean crude oil, edible oil, soyameal and soya flour. The company is also exploring diversification into production of pollution free bio-diesel from non-edible oils available in India to strengthen national energy security.
Chettinad Cement Rights issue
Chettinad Cement Corporation gained 1.04% to Rs 475 at 14:36 IST on BSE, after the company said its board will meet on 16 October 2008 to consider issue of equity shares on rights basis.
The company made this announcement during trading hours today, 15 October 2008.
The stock hit a high of Rs 475 and a low of Rs 475 so far during the day. The stock has a 52-week high of Rs 525 on 11 August 2008 and a 52-week low of Rs 345.15 on 11 January 2008.
The company’s current equity is Rs 29.50 crore. Face value per share is Rs 10.
The current price of Rs 475 discounts the company’s Q1 June 2008 annualized EPS of Rs 59.04, by a PE multiple of 8.05.
Chettinad Cement Corporation’s net profit rose 23.9% to Rs 43.54 crore on 41.3% increase in net sales to Rs 282.33 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing cement including ordinary portland cement and clinker. It also generates power from windmill and captive thermal power plants.
The company made this announcement during trading hours today, 15 October 2008.
The stock hit a high of Rs 475 and a low of Rs 475 so far during the day. The stock has a 52-week high of Rs 525 on 11 August 2008 and a 52-week low of Rs 345.15 on 11 January 2008.
The company’s current equity is Rs 29.50 crore. Face value per share is Rs 10.
The current price of Rs 475 discounts the company’s Q1 June 2008 annualized EPS of Rs 59.04, by a PE multiple of 8.05.
Chettinad Cement Corporation’s net profit rose 23.9% to Rs 43.54 crore on 41.3% increase in net sales to Rs 282.33 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing cement including ordinary portland cement and clinker. It also generates power from windmill and captive thermal power plants.
ICI India shines on buyback plan
ICI India galloped 9.39% to Rs 478.05 at 14:21 IST on BSE, after the company said on Wednesday, 15 October 2008, its board will meet on 23 October 2008 to consider buyback of equity shares at a price not exceeding Rs 575 a share.
The stock hit a high of Rs 488.80 and a low of Rs 435 so far during the day. The stock has a 52-week high of Rs 678.90 on 1 April 2008 and a 52-week low of Rs 392.95 on 6 October 2008.
The company’s current equity is Rs 38.22 crore. Face value per share is Rs 10.
The current price of Rs 478.05 discounts the company’s Q1 June 2008 annualized EPS of Rs 74.14, by a PE multiple of 6.44.
ICI India’s net profit surged 209.79% to Rs 70.88 crore on 20.98% growth in total income to Rs 290.19 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing paints, speciality chemicals, rubber chemicals, adhesives & starch. The group's activities are carried out through three segments: paints, chemicals and flavors and fragrances.
The stock hit a high of Rs 488.80 and a low of Rs 435 so far during the day. The stock has a 52-week high of Rs 678.90 on 1 April 2008 and a 52-week low of Rs 392.95 on 6 October 2008.
The company’s current equity is Rs 38.22 crore. Face value per share is Rs 10.
The current price of Rs 478.05 discounts the company’s Q1 June 2008 annualized EPS of Rs 74.14, by a PE multiple of 6.44.
ICI India’s net profit surged 209.79% to Rs 70.88 crore on 20.98% growth in total income to Rs 290.19 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing paints, speciality chemicals, rubber chemicals, adhesives & starch. The group's activities are carried out through three segments: paints, chemicals and flavors and fragrances.
GAIL India in demand
GAIL India rose 2.58% to Rs 261.80 at 11:24 IST on BSE after broker Morgan Stanley rated it 'overweight', citing the irreplaceable assets of the virtual monopoly.
The stock hit a high of Rs 262.40 and a low of Rs 247 so far during the day. The stock had a 52-week high of Rs 555 on 1 January 2008 and a 52-week low of Rs 225.10 on 10 October 2008.
The large-cap state-run gas distributor has an equity capital of Rs 1268.48 crore. Face value per share is Rs 10.
The current price of Rs 261.80 discounts its Q1 June 2008 annualised EPS of Rs 28.28, by a PE multiple of 9.25.
According to Morgan Stanley, the company is best positioned to take advantage of higher supply of natural gas, which is expected to increase by 150% over the next four years.
GAIL India’s net profit surged 30.9% to Rs 896.87 on 35% increase in sales to Rs 5730.71 crore in Q1 June 2008 over Q1 June 2007.
The company distributes natural gas and processes petrochemicals.
The stock hit a high of Rs 262.40 and a low of Rs 247 so far during the day. The stock had a 52-week high of Rs 555 on 1 January 2008 and a 52-week low of Rs 225.10 on 10 October 2008.
The large-cap state-run gas distributor has an equity capital of Rs 1268.48 crore. Face value per share is Rs 10.
The current price of Rs 261.80 discounts its Q1 June 2008 annualised EPS of Rs 28.28, by a PE multiple of 9.25.
According to Morgan Stanley, the company is best positioned to take advantage of higher supply of natural gas, which is expected to increase by 150% over the next four years.
GAIL India’s net profit surged 30.9% to Rs 896.87 on 35% increase in sales to Rs 5730.71 crore in Q1 June 2008 over Q1 June 2007.
The company distributes natural gas and processes petrochemicals.
Honeywell Automation spurts on strong Q3 results
Honeywell Automation India surged 8.14% to Rs 970 after the company reported 58.20% spurt in net profit to Rs 28.95 crore on 4.89% rise in net sales to Rs 238.21 crore in Q3 September 2008 over Q3 September 2007.
The results were announced after market hours on Tuesday, 14 October 2008.
Meanwhile, the BSE Sensex was down 384.25 points, or 3.33%, to 11,102.95.
On BSE, 1947 shares were traded in the counter. The stock hit a high of Rs 1001 and a low of Rs 910 so far during the day.
Honeywell Automation India's interest cost decreased 48.57% to Rs 0.36 crore while depreciation cost fell 26.67% to Rs 1.54 crore in Q3 September 2008 over Q3 September 2007.
Honeywell Automation India provides integrated automation and software solutions for improving productivity and comfort as well as for ensuring the safety and security of homes and business premises.
The results were announced after market hours on Tuesday, 14 October 2008.
Meanwhile, the BSE Sensex was down 384.25 points, or 3.33%, to 11,102.95.
On BSE, 1947 shares were traded in the counter. The stock hit a high of Rs 1001 and a low of Rs 910 so far during the day.
Honeywell Automation India's interest cost decreased 48.57% to Rs 0.36 crore while depreciation cost fell 26.67% to Rs 1.54 crore in Q3 September 2008 over Q3 September 2007.
Honeywell Automation India provides integrated automation and software solutions for improving productivity and comfort as well as for ensuring the safety and security of homes and business premises.
JSW Steel melts on price cut buzz
JSW Steel plunged 7.89% to Rs 289.55 at 10:41 IST on BSE on reports the company may cut product prices by end-October 2008 in line with a fall in metal prices globally.
The stock hit a high of Rs 302 and low of Rs 285 so far during the day. The stock hit a 52-week high of Rs 1389.70 on 13 December 2007 and 52-week low of Rs 244 on 10 October 2008
The company’s current equity is Rs 187.05 crore. Face value per share is Rs 10.
The current price of Rs 289.55 discounts the company's Q1 June 2008 annualized EPS of Rs 46.91, by a PE multiple of 6.17.
Global steel prices have corrected around 40% from a record high Concerns of a fall in demand amid fears of a global recession. The global financial sector crises has raised fears of a global recession. It may be recalled that JSW Steel had cut flat product prices by Rs 2,000 a tonne in September 2008.
On 10 October 2008 JSW Steel reported 14% growth in net crude steel production to 10.01 lakh tonne in Q2 September 2008 over Q2 September 2007.
In May 2008, JSW Steel entered into joint venture with Toshiba Corp for manufacturing and marketing steam turbines and generators in India.
JSW Steel’s net profit declined 53.2% to Rs 219.35 crore on a 53.9% increase in net sales to Rs 3671.49 crore in Q1 June 2008 over Q1 June 2007.
JSW Steel is part of the O P Jindal Group with interests in mining, carbon steel, power and oxygen.
The stock hit a high of Rs 302 and low of Rs 285 so far during the day. The stock hit a 52-week high of Rs 1389.70 on 13 December 2007 and 52-week low of Rs 244 on 10 October 2008
The company’s current equity is Rs 187.05 crore. Face value per share is Rs 10.
The current price of Rs 289.55 discounts the company's Q1 June 2008 annualized EPS of Rs 46.91, by a PE multiple of 6.17.
Global steel prices have corrected around 40% from a record high Concerns of a fall in demand amid fears of a global recession. The global financial sector crises has raised fears of a global recession. It may be recalled that JSW Steel had cut flat product prices by Rs 2,000 a tonne in September 2008.
On 10 October 2008 JSW Steel reported 14% growth in net crude steel production to 10.01 lakh tonne in Q2 September 2008 over Q2 September 2007.
In May 2008, JSW Steel entered into joint venture with Toshiba Corp for manufacturing and marketing steam turbines and generators in India.
JSW Steel’s net profit declined 53.2% to Rs 219.35 crore on a 53.9% increase in net sales to Rs 3671.49 crore in Q1 June 2008 over Q1 June 2007.
JSW Steel is part of the O P Jindal Group with interests in mining, carbon steel, power and oxygen.
Tata Motors slips after overseas acquisition
Tata Motors slipped 0.30% to Rs 298 at 9:55 IST on BSE, even as the company said its UK unit has acquired 50.3% stake in Norway-based Miljo Grenland/Innovasjon, which specialises in developing solutions for electric vehicles.
The stock hit a high of Rs 298 and a low of Rs 295 so far during the day. The stock has a 52-week high of Rs 810.04 on 29 October 2007 and a 52-week low of Rs 270 on 10 October 2008.
The company’s current equity is Rs 514.29 crore. Face value per share is Rs 10.
The current price of Rs 298 discounts the company’s Q1 June 2008 annualized EPS of Rs 33.82, by a PE multiple of 8.11.
Tata Motors and Miljo will together launch electric vehicle Indica EV in Europe in 2009.
It may be recalled that Tata Motors recently decided to relocate its small car Nano plant to Gujarat from West Bengal due to controversy over acquisition of farm land for the plant in West Bengal.
Tata Motors' commercial vehicles sales rose 6% to 28,648 units in September 2008 over September 2007. Sales of passenger vehicles declined 2.5% to 16,586 units in September 2008 over September 2007.
Tata Motors' rights issue of ordinary and Class A shares priced at Rs 340 and Rs 305 respectively, opened for subscription on 29 September 2008. The issue will close on 20 October 2008. The rights issue is for part funding its $2.3 billion Jaguar-Land Rover deal.
Tata Motors' net profit fell 30.1% to Rs 326.11 crore on a 14.40% increase in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007.
Tata Motors is engaged in manufacturing and marketing heavy, medium and light commercial vehicles, utility vehicles and passenger cars.
The stock hit a high of Rs 298 and a low of Rs 295 so far during the day. The stock has a 52-week high of Rs 810.04 on 29 October 2007 and a 52-week low of Rs 270 on 10 October 2008.
The company’s current equity is Rs 514.29 crore. Face value per share is Rs 10.
The current price of Rs 298 discounts the company’s Q1 June 2008 annualized EPS of Rs 33.82, by a PE multiple of 8.11.
Tata Motors and Miljo will together launch electric vehicle Indica EV in Europe in 2009.
It may be recalled that Tata Motors recently decided to relocate its small car Nano plant to Gujarat from West Bengal due to controversy over acquisition of farm land for the plant in West Bengal.
Tata Motors' commercial vehicles sales rose 6% to 28,648 units in September 2008 over September 2007. Sales of passenger vehicles declined 2.5% to 16,586 units in September 2008 over September 2007.
Tata Motors' rights issue of ordinary and Class A shares priced at Rs 340 and Rs 305 respectively, opened for subscription on 29 September 2008. The issue will close on 20 October 2008. The rights issue is for part funding its $2.3 billion Jaguar-Land Rover deal.
Tata Motors' net profit fell 30.1% to Rs 326.11 crore on a 14.40% increase in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007.
Tata Motors is engaged in manufacturing and marketing heavy, medium and light commercial vehicles, utility vehicles and passenger cars.
Monday, October 13, 2008
Nobel Economics prize -- Who is Paul Krugman?
Nobel Economics prize -- Who is Paul Krugman?
Mon, Oct 13 05:33 PM
Reuters - American economist Paul Krugman on Monday won the 2008 Nobel prize for economics for work that helps explain why some countries dominate international trade.
Here are some key facts on the winner and the prize:
* The Royal Swedish Academy of Sciences said the prize recognised Krugman's formulation of a new theory to answer questions such as what is driving worldwide urbanisation.
* Krugman's work has integrated the previously disparate research fields of international trade and economic geography, the prize committee said.
* His new theory sheds light on why global trade is dominated by countries that not only have similar conditions, but also trade in similar products.
* Krugman has criticised the administration of President George W. Bush for policies that he argues led to the current financial crisis.
* Krugman's theories have helped explain how self-reinforcing processes of urbanisation and increased large-scale production, as well as higher real wages and a more diverse supply of goods, can combine to divide regions into a high-technology urbanized core and a less developed periphery.
* Krugman was born in New York City in 1953 and received a PhD at the Massachusetts Institute of Technology.
* He has been professor of economics and international affairs at Princeton University, New Jersey, since 2000.
* Krugman has written for publications such as the New York Times and Foreign Affairs and is the author of 20 books and more than 200 papers in professional journals.
* He has also taught at Yale, MIT and Stanford University.
* His current work centres on economic and currency crises.
Sources: Reuters/www.nobel.org/
Core Projects and Technologies slumps 70% in two trading sessions
Core Projects and Technologies slumped 46% to Rs 74 at 14:03 IST on BSE, tumbling for the third session in a row on market talk that shares pledged by some investors were offloaded after margin calls were unmet.
Core Projects had tanked 43.7% to Rs 141 on Friday, 10 October 2008. The stock has corrected 70.38% in two trading sessions from Rs 249.85 on 8 October 2008.
The stock hit a high of Rs 164 and a low of Rs 69.90 so far during the day. The stock had a 52-week high of Rs 464.40 on 28 December 2007 and a 52-week low of Rs 122 on 10 October 2008.
The mid-cap software-solutions provider has an equity capital of Rs 17.25 crore. Face value per share is Rs 2.
The current price of Rs 74 discounts its Q1 June 2008 annualised EPS of Rs 6.42, by a PE multiple of 11.52.
According to a report, some high net worth individuals (HNIs) had borrowed money from a couple of non-banking financial companies (NBFCs) by pledging their shares.
Reports quoted a Core Projects spokesperson as saying that the company was unaware of any margin calls. However, in his opinion, the steep fall in the stock price was perhaps due to liquidation of shares, which rose out of the conversion of foreign currency convertible bond (FCCBs). The company had issued FCCBs worth $80 million in May last year, with a conversion price of Rs 167.
A total of 16.75 lakh shares were converted out of these FCCBs in the past one month, the report added.
Core Projects and Technologies’ net profit fell 4% to Rs 13.32 crore on a 25.70% rise in sales to Rs 64.90 crore in Q1 June 2008 over Q4 March 2008.
Core Projects & Technologies provides information technology products and services. The company provides services including onsite and offsite consulting and knowledge management services, systems integration, global postioning system based vehicle tracking and detection systems, application support for their products, and offshore outsourcing.
Core Projects had tanked 43.7% to Rs 141 on Friday, 10 October 2008. The stock has corrected 70.38% in two trading sessions from Rs 249.85 on 8 October 2008.
The stock hit a high of Rs 164 and a low of Rs 69.90 so far during the day. The stock had a 52-week high of Rs 464.40 on 28 December 2007 and a 52-week low of Rs 122 on 10 October 2008.
The mid-cap software-solutions provider has an equity capital of Rs 17.25 crore. Face value per share is Rs 2.
The current price of Rs 74 discounts its Q1 June 2008 annualised EPS of Rs 6.42, by a PE multiple of 11.52.
According to a report, some high net worth individuals (HNIs) had borrowed money from a couple of non-banking financial companies (NBFCs) by pledging their shares.
Reports quoted a Core Projects spokesperson as saying that the company was unaware of any margin calls. However, in his opinion, the steep fall in the stock price was perhaps due to liquidation of shares, which rose out of the conversion of foreign currency convertible bond (FCCBs). The company had issued FCCBs worth $80 million in May last year, with a conversion price of Rs 167.
A total of 16.75 lakh shares were converted out of these FCCBs in the past one month, the report added.
Core Projects and Technologies’ net profit fell 4% to Rs 13.32 crore on a 25.70% rise in sales to Rs 64.90 crore in Q1 June 2008 over Q4 March 2008.
Core Projects & Technologies provides information technology products and services. The company provides services including onsite and offsite consulting and knowledge management services, systems integration, global postioning system based vehicle tracking and detection systems, application support for their products, and offshore outsourcing.
Mastek on strong revenue guidance for FY 2009
Mastek gained 10.92% to Rs 229 at 10:05 IST on BSE, even as the company posted 17.06% fall in net profit to Rs 26.15 crore in Q1 September 2008 over Q4 June 2008.
The stock hit a high of Rs 229 and a low of Rs 210 so far during the day. The stock has a 52-week high of Rs 419 on 12 October 2007 and a 52-week low of Rs 193 on 10 October 2008.
The company’s current equity is Rs 13.81 crore. Face value per share is Rs 5.
The current price of Rs 229 discounts the company’s Q1 September 2008 annualized EPS of Rs 38.88, by a PE multiple of 5.89.
Mastek’s net sales fell 1.31% to Rs 156.74 crore in Q1 September 2008 over Q4 June 2008.
The company’s net profit surged 54.28% to Rs 26.15 crore on 11.8% increase in net sales to Rs 156.74 crore in Q1 September 2008 over Q1 September 2007.
Mastek said it it expects to deliver 32% to 34% growth in total income in rupee terms in the year ending June 2009. The company also said the impact of the prevailing macroeconomic environment on it is expected to be limited given that it derives most of its revenue from relatively stable verticals.
Mastek said its 12-month order book grew 11% to Rs 505 crore as of 30 September 2008.
On 6 October 2008, Mastek’s overseas unit MajescoMastek implemented STG billing and accounts receivable solution at Farmers Alliance Companies of Kansas in US.
Mastek is an information technology (IT) player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide.
The stock hit a high of Rs 229 and a low of Rs 210 so far during the day. The stock has a 52-week high of Rs 419 on 12 October 2007 and a 52-week low of Rs 193 on 10 October 2008.
The company’s current equity is Rs 13.81 crore. Face value per share is Rs 5.
The current price of Rs 229 discounts the company’s Q1 September 2008 annualized EPS of Rs 38.88, by a PE multiple of 5.89.
Mastek’s net sales fell 1.31% to Rs 156.74 crore in Q1 September 2008 over Q4 June 2008.
The company’s net profit surged 54.28% to Rs 26.15 crore on 11.8% increase in net sales to Rs 156.74 crore in Q1 September 2008 over Q1 September 2007.
Mastek said it it expects to deliver 32% to 34% growth in total income in rupee terms in the year ending June 2009. The company also said the impact of the prevailing macroeconomic environment on it is expected to be limited given that it derives most of its revenue from relatively stable verticals.
Mastek said its 12-month order book grew 11% to Rs 505 crore as of 30 September 2008.
On 6 October 2008, Mastek’s overseas unit MajescoMastek implemented STG billing and accounts receivable solution at Farmers Alliance Companies of Kansas in US.
Mastek is an information technology (IT) player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide.
Post-Market Commentary. Monday, October 13, 2008
Mkt recover on FM comments, positive global cues
The BSE Sensex recovered 781.24 points today. It had tanked 2,527.81 points or 19.36% to 10,527.85 on 10 October 2008 from a recent high of 13,055.67 on 1 October 2008. Finance minister P Chidambaram's statement that the government was working on more measures to infuse liquidity in the banking system and increase the confidence of depositors and investors, aided the rebound in equities today.
The S&P CNX Nifty was up 210.75 points or 6.43% to 3,490.70.
As per the provisional figures on BSE, the foreign intitutional investors (FII)s sold shares worth Rs 1060.60 crore today, 13 October 2008 while domestic funds bought shares worth Rs 582.31 crore.
Finance Minister P Chidambaram today said the Indian economy continues to grow at a satisfactory rate. The finance minister also said the slide in commodity and crude oil prices will have a beneficial impact on inflation. He said the Indian services sector is growing at a brisk rate. He said the ratio of investments to GDP remains high. The ratio was above 35% in Q1 June 2008.
The Reserve Bank of India chief Duvvuri Subbarao on Friday, 10 October 2008 said that India may escape the worst consequences of the global financial crisis due to its strong internal drivers for growth but money, debt and credit markets may be impacted indirectly.
The BSE Sensex recovered 781.24 points today. It had tanked 2,527.81 points or 19.36% to 10,527.85 on 10 October 2008 from a recent high of 13,055.67 on 1 October 2008. Finance minister P Chidambaram's statement that the government was working on more measures to infuse liquidity in the banking system and increase the confidence of depositors and investors, aided the rebound in equities today.
The S&P CNX Nifty was up 210.75 points or 6.43% to 3,490.70.
As per the provisional figures on BSE, the foreign intitutional investors (FII)s sold shares worth Rs 1060.60 crore today, 13 October 2008 while domestic funds bought shares worth Rs 582.31 crore.
Finance Minister P Chidambaram today said the Indian economy continues to grow at a satisfactory rate. The finance minister also said the slide in commodity and crude oil prices will have a beneficial impact on inflation. He said the Indian services sector is growing at a brisk rate. He said the ratio of investments to GDP remains high. The ratio was above 35% in Q1 June 2008.
The Reserve Bank of India chief Duvvuri Subbarao on Friday, 10 October 2008 said that India may escape the worst consequences of the global financial crisis due to its strong internal drivers for growth but money, debt and credit markets may be impacted indirectly.
Sunday, October 12, 2008
MFs turn to central bank amid cash crunch
12 Oct, 2008, 1440 hrs IST, REUTERS
MUMBAI: India's mutual funds have asked the central bank to lend them short-term cash via a repurchase facility after the global financial crisis virtually paralysed the country's money markets, fund executives said.
The Reserve Bank of India is considering the proposal to let mutual funds deposit some of the short-term bank debt they hold with the central bank in exchange for cash, said four senior executives, who are involved in talks with the central bank and declined to be named.
Central bank repurchase facilities are normally only open to banks and primary dealers. The central bank's spokeswoman said she could not immediately comment.
Mutual funds would normally sell bank debt on the money market to raise cash to meet redemptions, which should have risen in September as customers pulled out money for quarterly tax payments.
But Indian money markets have been hit by the global financial crisis, which has wrecked banks across the United States and Europe and made lenders around the world wary of dealing with each other.
The cost of overnight borrowing on the interbank market jumped to a 19-month high of 23 percent on Friday, more than double the central bank's short-term lending rate of 9 percent.
The central bank has tried to ease the liquidity squeeze and the executives said it would only agree to the mutual funds' request if the money markets failed to thaw.
The central bank lowered the proportion of deposits banks must keep in their vaults by 150 basis points from Saturday, adding 600 billion rupees ($12.4 billion) to the amount of cash available for lending.
The stock market regulator, the Securities and Exchange Board of India, has asked mutual funds to give details of their holdings of certificates of deposits (CDs), short-term debt sold by banks. This data would be used by the Reserve Bank of India to assess the request for access to the repo facility, the executives said.
"That seems to be the final objective in mind," one of them, a chief executive of an Indian mutual fund house, said.
Waning appetite
CD issuance has ballooned this year as banks scrambled to raise funds to feed demand for credit. Mutual funds have bought them, attracted by returns. Central bank data shows outstanding CDs at the end of August totalled 1.71 trillion rupees, up nearly 40 percent from the start of the year.
But appetite for CDs is waning and cost of borrowing for three months by selling certificates of deposit has jumped to as high as 14 percent compared with between 10 and 11 percent a month earlier, two money market dealers said on Saturday.
That spells trouble for mutual funds at a time of rising redemptions. Customers pulled a net 43 billion rupees out of liquid mutual funds in August after investing a net 630 million the previous month, according to the Association of Mutual Funds in India. The association has yet to release figures for September, when withdrawals typically rise due to quarterly tax payments.
Foreign funds are bailing out of the tumbling stock market, driving the rupee to a record low against the dollar. The central bank is buying rupees to support the currency, exacerbating the cash shortage.
The government has also yet to disburse cash for planned spending, something which would normally boost cash supply in the banking system. To try to the thaw out the market and prod banks into lending to each other, the central bank injected a record of 920 billion rupees in its repo operation on Friday.
Liquid funds managed 891.2 billion rupees at the end of August and accounted for 16.37 percent of the total industry's holdings, Association of Mutual Funds in India data shows.
MUMBAI: India's mutual funds have asked the central bank to lend them short-term cash via a repurchase facility after the global financial crisis virtually paralysed the country's money markets, fund executives said.
The Reserve Bank of India is considering the proposal to let mutual funds deposit some of the short-term bank debt they hold with the central bank in exchange for cash, said four senior executives, who are involved in talks with the central bank and declined to be named.
Central bank repurchase facilities are normally only open to banks and primary dealers. The central bank's spokeswoman said she could not immediately comment.
Mutual funds would normally sell bank debt on the money market to raise cash to meet redemptions, which should have risen in September as customers pulled out money for quarterly tax payments.
But Indian money markets have been hit by the global financial crisis, which has wrecked banks across the United States and Europe and made lenders around the world wary of dealing with each other.
The cost of overnight borrowing on the interbank market jumped to a 19-month high of 23 percent on Friday, more than double the central bank's short-term lending rate of 9 percent.
The central bank has tried to ease the liquidity squeeze and the executives said it would only agree to the mutual funds' request if the money markets failed to thaw.
The central bank lowered the proportion of deposits banks must keep in their vaults by 150 basis points from Saturday, adding 600 billion rupees ($12.4 billion) to the amount of cash available for lending.
The stock market regulator, the Securities and Exchange Board of India, has asked mutual funds to give details of their holdings of certificates of deposits (CDs), short-term debt sold by banks. This data would be used by the Reserve Bank of India to assess the request for access to the repo facility, the executives said.
"That seems to be the final objective in mind," one of them, a chief executive of an Indian mutual fund house, said.
Waning appetite
CD issuance has ballooned this year as banks scrambled to raise funds to feed demand for credit. Mutual funds have bought them, attracted by returns. Central bank data shows outstanding CDs at the end of August totalled 1.71 trillion rupees, up nearly 40 percent from the start of the year.
But appetite for CDs is waning and cost of borrowing for three months by selling certificates of deposit has jumped to as high as 14 percent compared with between 10 and 11 percent a month earlier, two money market dealers said on Saturday.
That spells trouble for mutual funds at a time of rising redemptions. Customers pulled a net 43 billion rupees out of liquid mutual funds in August after investing a net 630 million the previous month, according to the Association of Mutual Funds in India. The association has yet to release figures for September, when withdrawals typically rise due to quarterly tax payments.
Foreign funds are bailing out of the tumbling stock market, driving the rupee to a record low against the dollar. The central bank is buying rupees to support the currency, exacerbating the cash shortage.
The government has also yet to disburse cash for planned spending, something which would normally boost cash supply in the banking system. To try to the thaw out the market and prod banks into lending to each other, the central bank injected a record of 920 billion rupees in its repo operation on Friday.
Liquid funds managed 891.2 billion rupees at the end of August and accounted for 16.37 percent of the total industry's holdings, Association of Mutual Funds in India data shows.
Satyam banned by world bank
NEW YORK: Software major Satyam Computer Services has reportedly been banned from doing any off-shore work with the World Bank after forensic experts and bank investigators discovered that spy software was covertly installed on workstations inside the bank's Washington headquarters, allegedly by one or more contractors from Satyam Computer Services.
According to a FOX News report, apart from Satyam, two IP intrusions have been reported from China, and there have been six intrusions in all.
Investigators say that the software, which operates through a method known as keystroke logging, enabled every character typed on a keyboard to be transmitted to a still-unknown location via the Internet.
Upon its discovery, bank officials shut off the data link between Washington and Chennai, where Satyam has long operated the bank's sole offshore computer center responsible for all of the bank's financial and human resources information.
"I want them off the premises now," World Bank President Robert Zoellick reportedly told his deputies. But at the urging of CIO De Poerck, Satyam employees remained at the bank as recently as October 1 while it engaged in "knowledge transfer" with two new India-based contractors.
Satyam is publicly listed on the New York Stock Exchange and boasts having two billion dollars in sales and more than 150 Fortune 500 companies as clients.
In 2003, Satyam won a lucrative five-year "sole source" contract to design, write and maintain all of the World Bank's information systems. The contract, which began at $10 million, had grown to over $100 million by 2007. This year, the contract was not renewed. Satyam has declined to comment.
FOX News claims that outsiders have raided the World Bank Group's computer network, one of the largest repositories of sensitive data about the economies of every nation, repeatedly for more than a year.
It is still not known how much information was stolen. But sources inside the bank confirm that servers in the institution's highly restricted treasury unit were deeply penetrated with spy software last April. Invaders also had full access to the rest of the bank's network for nearly a month in June and July.
The crisis comes at an awkward moment for Zoellick, who runs the world's largest and most influential anti-poverty agency, which doles out $25 billion a year, and whose board represents 185 member nations.
This weekend, the bank holds its annual series of meetings in Washington, and just in advance of those sessions, Zoellick called for a radical revamping of multilateral organizations in light of the global economic meltdown.
Zoellick is positioning himself and the bank as an institution that can help chart a new path toward global financial stability. But that reputation, more than ever, depends on the bank's stable information infrastructure.
According to internal memos, "a minimum of 18 servers has been compromised," including some of the bank's most sensitive systems, ranging from the bank's security and password server to a Human Resources server "that contains scanned images of staff documents."
One World Bank director told FOX News that as many as 40 servers have been penetrated, including one that held contract-procurement data. It took ten days for bank officials to detect that they'd been invaded. Once they did, they shut down all external servers, except for e-mail, which it turns out the invaders were already using as their entrance point.
A World Bank spokesman, however, rubbished the Fox News story, saying it is riddled with falsehoods and errors.
http://infotech.indiatimes.com/News/Satyam_banned_from_World_Bank/articleshow/3583701.cms
According to a FOX News report, apart from Satyam, two IP intrusions have been reported from China, and there have been six intrusions in all.
Investigators say that the software, which operates through a method known as keystroke logging, enabled every character typed on a keyboard to be transmitted to a still-unknown location via the Internet.
Upon its discovery, bank officials shut off the data link between Washington and Chennai, where Satyam has long operated the bank's sole offshore computer center responsible for all of the bank's financial and human resources information.
"I want them off the premises now," World Bank President Robert Zoellick reportedly told his deputies. But at the urging of CIO De Poerck, Satyam employees remained at the bank as recently as October 1 while it engaged in "knowledge transfer" with two new India-based contractors.
Satyam is publicly listed on the New York Stock Exchange and boasts having two billion dollars in sales and more than 150 Fortune 500 companies as clients.
In 2003, Satyam won a lucrative five-year "sole source" contract to design, write and maintain all of the World Bank's information systems. The contract, which began at $10 million, had grown to over $100 million by 2007. This year, the contract was not renewed. Satyam has declined to comment.
FOX News claims that outsiders have raided the World Bank Group's computer network, one of the largest repositories of sensitive data about the economies of every nation, repeatedly for more than a year.
It is still not known how much information was stolen. But sources inside the bank confirm that servers in the institution's highly restricted treasury unit were deeply penetrated with spy software last April. Invaders also had full access to the rest of the bank's network for nearly a month in June and July.
The crisis comes at an awkward moment for Zoellick, who runs the world's largest and most influential anti-poverty agency, which doles out $25 billion a year, and whose board represents 185 member nations.
This weekend, the bank holds its annual series of meetings in Washington, and just in advance of those sessions, Zoellick called for a radical revamping of multilateral organizations in light of the global economic meltdown.
Zoellick is positioning himself and the bank as an institution that can help chart a new path toward global financial stability. But that reputation, more than ever, depends on the bank's stable information infrastructure.
According to internal memos, "a minimum of 18 servers has been compromised," including some of the bank's most sensitive systems, ranging from the bank's security and password server to a Human Resources server "that contains scanned images of staff documents."
One World Bank director told FOX News that as many as 40 servers have been penetrated, including one that held contract-procurement data. It took ten days for bank officials to detect that they'd been invaded. Once they did, they shut down all external servers, except for e-mail, which it turns out the invaders were already using as their entrance point.
A World Bank spokesman, however, rubbished the Fox News story, saying it is riddled with falsehoods and errors.
http://infotech.indiatimes.com/News/Satyam_banned_from_World_Bank/articleshow/3583701.cms
Saturday, October 11, 2008
Fixed income MFs witnessing major turmoil
11 Oct, 2008, 2020 hrs IST,Gaurav Pai, ET Bureau
MUMBAI: Fixed income mutual funds, the engine which fuelled the growth of the Indian mutual fund industry for a long time now, are now witnessing their first major turmoil.
Stunned by the turbulence in the global financial markets and with concerns emerging relating to the asset quality on the portfolio of local fund houses, institutional investors are pulling out of their investments from these funds. In fact, broking industry officials said two leading fund houses had to face heavy withdrawals in the past couple of sessions that led to their net asset values slipping into the red.
This development comes in the wake of capital market regulator SEBI directing all fund houses to furnish details about the inflows, outflows, break-up of certain assets among others. Fund houses under the aegis of Amfi, a trade body of all MFs, have now approached SEBI for help in tiding over this grave liquidity crisis. Indications are that banks may be nudged by policy makers to offer credit lines to desperate fund houses.
Over the past few years, fixed income funds have come to account for more than two-thirds of the industry’s assets, aggregating close to Rs 5.5-lakh crore. These mainly consist of liquid funds (shortest duration and supposedly highest liquidity), liquid-plus funds (slightly longer duration) and fixed maturity plans (closed-ended funds of pre-announced tenure).
But with credit derivatives market in America in a mess, investors have increasingly become sceptical about the credit quality of assets in fixed income funds. So, while fund managers have been trying to calm tempers saying the portfolio of Indian MFs remains satisfactory, investors have been rushing to reclaim their monies. With the tightening of liquidity, this redemption process has become a real challenge for fund managers.
According to data obtained from independent research sources (Kotak Mahindra bank, Reliance Money, Yes Bank) the NAV of the liquid-plus scheme of Franklin Templeton fell by 26% on Wednesday. Broking officials said this could have been due to redemptions, prompting the fund house to sell its investments at a discount in the market. But Templeton denied this claim. “The NAV of a liquid fund is dependent on the movement in bond market yields. The recent sharp tightness in systemic liquidity has pushed short-term yields up sharply,” Franklin Templeton Investments CIO (Fixed Income) Santosh Kamath said while explaining the negative movement in its NAVs.
One of DSP Merrill’s liquid-plus schemes also shed 5% of its NAV on Wednesday. In the race to spruce up their returns, fund houses have increasingly taken recourse to investing in illiquid papers and securities of longer duration (something that liquid funds are not supposed to invest in.) When redemptions set in, exiting either of these will become an issue and they will have to sell assets at a discount, thus starting a vicious cycle.
Via:E.T
MUMBAI: Fixed income mutual funds, the engine which fuelled the growth of the Indian mutual fund industry for a long time now, are now witnessing their first major turmoil.
Stunned by the turbulence in the global financial markets and with concerns emerging relating to the asset quality on the portfolio of local fund houses, institutional investors are pulling out of their investments from these funds. In fact, broking industry officials said two leading fund houses had to face heavy withdrawals in the past couple of sessions that led to their net asset values slipping into the red.
This development comes in the wake of capital market regulator SEBI directing all fund houses to furnish details about the inflows, outflows, break-up of certain assets among others. Fund houses under the aegis of Amfi, a trade body of all MFs, have now approached SEBI for help in tiding over this grave liquidity crisis. Indications are that banks may be nudged by policy makers to offer credit lines to desperate fund houses.
Over the past few years, fixed income funds have come to account for more than two-thirds of the industry’s assets, aggregating close to Rs 5.5-lakh crore. These mainly consist of liquid funds (shortest duration and supposedly highest liquidity), liquid-plus funds (slightly longer duration) and fixed maturity plans (closed-ended funds of pre-announced tenure).
But with credit derivatives market in America in a mess, investors have increasingly become sceptical about the credit quality of assets in fixed income funds. So, while fund managers have been trying to calm tempers saying the portfolio of Indian MFs remains satisfactory, investors have been rushing to reclaim their monies. With the tightening of liquidity, this redemption process has become a real challenge for fund managers.
According to data obtained from independent research sources (Kotak Mahindra bank, Reliance Money, Yes Bank) the NAV of the liquid-plus scheme of Franklin Templeton fell by 26% on Wednesday. Broking officials said this could have been due to redemptions, prompting the fund house to sell its investments at a discount in the market. But Templeton denied this claim. “The NAV of a liquid fund is dependent on the movement in bond market yields. The recent sharp tightness in systemic liquidity has pushed short-term yields up sharply,” Franklin Templeton Investments CIO (Fixed Income) Santosh Kamath said while explaining the negative movement in its NAVs.
One of DSP Merrill’s liquid-plus schemes also shed 5% of its NAV on Wednesday. In the race to spruce up their returns, fund houses have increasingly taken recourse to investing in illiquid papers and securities of longer duration (something that liquid funds are not supposed to invest in.) When redemptions set in, exiting either of these will become an issue and they will have to sell assets at a discount, thus starting a vicious cycle.
Via:E.T
Forex reserves fall; bank credit rises
The country’s forex kitty got lighter by nearly $8 billion in a single week.
The reserves have been dwindling for the past few weeks following sustained FII outflows from the domestic equity market. This coupled with selling of dollars by the Reserve Bank of India, took the forex reserves down by more than $1 billion in the last one month.
According to figures released by the RBI on Friday, forex reserves plunged by $7.87 billion to touch $283.941 billion for the week ended October 3.
The fall could be partly attributed to dollar selling by the RBI in the forex markets to stabilise the rupee, said Mr Ashish Parthasarathy, Deputy treasurer, HDFC.
In the previous week, reserves had decreased by $153 million to touch $291.819 billion.
According to the figures released by the Securities and Exchange Board of India, foreign institutional investors have been net sellers in the equity markets to the tune of Rs 416.80 crore for the week ended October 3, which also led to the decline in forex reserves, said dealers.
Foreign currency assets decreased by $7.741 billion to $274.911 billion. Gold reserves decreased by $127 million to $8.565 billion, while SDRs were unchanged at $4 million.
Credit growth
Despite the talk of the fund crunch , total bank credit for the fortnight ended September 26 grew by Rs 51,219 crore, to touch Rs 25,42,467 crore, according to the RBI figures.
Of this, non-food credit grew by Rs 51,234 crore to Rs 24,97,292 crore, while food credit fell by Rs 15 crore to Rs 45,175 crore.
Bank credit grew by 24 per over the previous year, which is above the RBI’s target of 20 per cent.
For the same fortnight, aggregate deposits grew by Rs 36,761 crore to touch Rs 34,42,138 crore. The growth in deposits is 19.8 per cent over the previous year.
According to a senior official from a leading public sector bank, the increase in credit could be attributed to the fertiliser subside disbursal, which was committed earlier. Oil companies were also borrowing from banks and rolling over the money, he said.
via:B.L
The reserves have been dwindling for the past few weeks following sustained FII outflows from the domestic equity market. This coupled with selling of dollars by the Reserve Bank of India, took the forex reserves down by more than $1 billion in the last one month.
According to figures released by the RBI on Friday, forex reserves plunged by $7.87 billion to touch $283.941 billion for the week ended October 3.
The fall could be partly attributed to dollar selling by the RBI in the forex markets to stabilise the rupee, said Mr Ashish Parthasarathy, Deputy treasurer, HDFC.
In the previous week, reserves had decreased by $153 million to touch $291.819 billion.
According to the figures released by the Securities and Exchange Board of India, foreign institutional investors have been net sellers in the equity markets to the tune of Rs 416.80 crore for the week ended October 3, which also led to the decline in forex reserves, said dealers.
Foreign currency assets decreased by $7.741 billion to $274.911 billion. Gold reserves decreased by $127 million to $8.565 billion, while SDRs were unchanged at $4 million.
Credit growth
Despite the talk of the fund crunch , total bank credit for the fortnight ended September 26 grew by Rs 51,219 crore, to touch Rs 25,42,467 crore, according to the RBI figures.
Of this, non-food credit grew by Rs 51,234 crore to Rs 24,97,292 crore, while food credit fell by Rs 15 crore to Rs 45,175 crore.
Bank credit grew by 24 per over the previous year, which is above the RBI’s target of 20 per cent.
For the same fortnight, aggregate deposits grew by Rs 36,761 crore to touch Rs 34,42,138 crore. The growth in deposits is 19.8 per cent over the previous year.
According to a senior official from a leading public sector bank, the increase in credit could be attributed to the fertiliser subside disbursal, which was committed earlier. Oil companies were also borrowing from banks and rolling over the money, he said.
via:B.L
How much more can FIIs sell
Largest inflow of $36 b came in 2004-05.
Mumbai, Oct. 10 FII investments in Indian equities, from the time they commenced buying in India, has amounted to $56 billion as on Friday, SEBI data showed.
The value of this investment on Friday would not be $56 billion, of course, but how much of this is likely to be sold, marketmen were wondering. On this hinges the fate of Indian stocks in the near future.
More on cards?
Going by the FII investment figures (see table) it is possible that another $7 billion to $8 billion in equities could be shed by them, estimate analysts. FIIs have already sold equities worth more than $10 billion in 2008.
Taking October as the base month, the largest increase in FII investment was between 2004 and 2005, when net buys by FIIs rose by $36 billion. But the Sensex was at 8,483 in October 2005 and FIIs are likely to hold on to those investments, said an analyst. Of course, this is a crude way of calculating as one does not know how much of those investments they have sold to re-enter the market, but it is a rough indication on what is to come, said one analyst.
The next large chunk of investments came in 2006-2007 (October) amounting to nearly $18 billion. In October 2007 the Sensex was above 18,800, much higher than now.
It is this $18 billion of investments that FIIs they are likely to offload first to cut losses, said the analyst.
“They would calculate on a last-in, first-out basis. What they had invested in 2004-05 has still gained enormously from what the Sensex levels were then.”
By this estimation, at least another $8 billion can be sold by FIIs, he said.
Uncertainty
Mr Motilal Oswal, Chairman & Managing Director, Motilal Oswal Financial Services, was of the opinion that little can be said when one could not predict what would happen overseas. “But there are some long-term investors among FIIs too, entities like pension funds and so on who are not likely to sell too quickly.”
Thursday, October 9, 2008
U.S. National Debt Clock runs out of digits
NEW YORK: Such is the surge in America’s debt that even technology is finding it difficult to measure its level as a clock earmarked for keeping a tab on the country’s national debt has run out of digits.
The operator of the National Debt Clock, installed at Times Square in New York, has now dropped the dollar sign in the total figure to accommodate a ten trillion dollar figure.
A replacement for the clock with two additional digits that would be able to account for up to a quadrillion (million billion) dollars of debt is expected only by the next year.
The existing clock can accommodate up to 9,999,999,999,999 dollars (just one dollar short of $10-trillion) of debt with a dollar sign ($) preceding it, but the clock has started showing the figure without the dollar sign after the debt level recently reached the 10-trillion dollar level.
At the last check, the clock showed the United States’ total national debt at about 10,250,000,000,000 dollars ($10.25 trillion). With an estimated population of about 305 million, this results into an average debt of close to $34,000 for every U.S. citizen.
The clock is said to have been first installed in 1989 when the national debt stood at about $2.7 trillion.
The clock shows the total amount of debt owed by the U.S. government and was first installed by real estate developer Seymour Durst. The Durst Organization now plans to replace this clock with a newer 15-digit version, as against its current capability of showing 13 digits, in addition to a dollar sign.
The financial rescue packages totalling over a trillion dollar, including the latest $700-billion plan, and the government’s expected move to buy shares in some banks, are expected to further inflate the country’s debt levels. — PTI
Via:Hindu
Japan's Yamato Life Insurance goes bankrupt: Official
10 Oct, 2008, 0705 hrs IST, AGENCIES
TOKYO: Japan's Yamato Life Insurance will file for bankruptcy protection, becoming the first Japanese insurer to fail amid the global credit crisi
s, the financial watchdog said on Friday.
The Tokyo-based company will take necessary legal steps based on insurance law and will seek approval for rehabilitation, the news agency and other media said, quoting informed sources.
The medium-size insurer's debts amount to 269.5 billion yen (2.73 billion dollars), Jiji said.
Telephone calls to Yamato went unanswered, but the company has scheduled a press conference later in the day, Dow Jones Newswires said.
TOKYO: Japan's Yamato Life Insurance will file for bankruptcy protection, becoming the first Japanese insurer to fail amid the global credit crisi
s, the financial watchdog said on Friday.
The Tokyo-based company will take necessary legal steps based on insurance law and will seek approval for rehabilitation, the news agency and other media said, quoting informed sources.
The medium-size insurer's debts amount to 269.5 billion yen (2.73 billion dollars), Jiji said.
Telephone calls to Yamato went unanswered, but the company has scheduled a press conference later in the day, Dow Jones Newswires said.
Hindalco rights issue may devolve
MUMBAI: The Rs 5,047-crore rights issue of Hindalco Industries is set to devolve on the underwriters, thanks to the financial crisis gripping much
of the world. Although the quantum of the devolvement will be clear on Friday after the closure of the issue, sources close to the offer said that the figure is expected to be in the range of at least 15-20%. The five underwriter banks are ABN Amro, Citigroup, Deutsche Bank, DSP Merrill Lynch and State Bank of India. They may have to acquire the remaining 15-20%.
A source said the offer has managed to attract subscription of only 45% (this may include a large chunk subscribed by the promoters) till Wednesday, one working day before the closure (Thursday was a holiday). This includes GDR holders’ application to buy their entire entitlement of nearly 11%.
The Aditya Birla group, the promoters, has promised to subscribe to 50% of the issue, against its entitlement of 31.43%. It is understood that domestic financial institutions, who have a combined 15% stake, may opt for the issue unless there is no dramatic crash in the stock markets, a banking source said.
A source close to Hindalco said the company would manage to sail through the issue. “The Hindalco stock fell less than its peers in the current meltdown. It has a book value of Rs 140 and treasury of Rs 9,000 crore. It’s a long-term growth story.” When contacted, the Birla group spokesperson declined to comment.
Hindalco’s rights issue has been hit by the crash in the global financial markets. Its share price has fallen below the rights offer price of Rs 96. The company’s shares closed at Rs 90 on Wednesday on the Bombay Stock Exchange.
It is learnt that the Birlas would directly pick up 41% of the issue and would nominate investors for another 9%. With this, the rights issue will get a 90% response including the devolvement to the underwriters. Post-rights, the Birlas stake may go up to 47-48% on the expanded capital.
Hindalco launched the rights issue to part-finance the acquisition of Canadian aluminium company Novelis, which it bought for an enterprise value of $6 billion last year. The company had taken a bridge loan of $3.03 billion for the takeover, which expires next month.
In addition to this issue, Hindalco has stitched together a $1-billion loan from a consortium of 11 international banks to finance the Novelis acquisition. The term for the loan is nearly five years. The loan will be raised at a rate of LIBOR plus 280 basis points. The Libor, or the London interbank rate, is the rate at which banks lend money to each other. Hindalco had raised bridge loans at Libor plus 80 basis points last year.
Via:E.T
10 Oct, 2008, 0226 hrs IST,Dev Chatterjee & Kausik Datta, ET Bureau
of the world. Although the quantum of the devolvement will be clear on Friday after the closure of the issue, sources close to the offer said that the figure is expected to be in the range of at least 15-20%. The five underwriter banks are ABN Amro, Citigroup, Deutsche Bank, DSP Merrill Lynch and State Bank of India. They may have to acquire the remaining 15-20%.
A source said the offer has managed to attract subscription of only 45% (this may include a large chunk subscribed by the promoters) till Wednesday, one working day before the closure (Thursday was a holiday). This includes GDR holders’ application to buy their entire entitlement of nearly 11%.
The Aditya Birla group, the promoters, has promised to subscribe to 50% of the issue, against its entitlement of 31.43%. It is understood that domestic financial institutions, who have a combined 15% stake, may opt for the issue unless there is no dramatic crash in the stock markets, a banking source said.
A source close to Hindalco said the company would manage to sail through the issue. “The Hindalco stock fell less than its peers in the current meltdown. It has a book value of Rs 140 and treasury of Rs 9,000 crore. It’s a long-term growth story.” When contacted, the Birla group spokesperson declined to comment.
Hindalco’s rights issue has been hit by the crash in the global financial markets. Its share price has fallen below the rights offer price of Rs 96. The company’s shares closed at Rs 90 on Wednesday on the Bombay Stock Exchange.
It is learnt that the Birlas would directly pick up 41% of the issue and would nominate investors for another 9%. With this, the rights issue will get a 90% response including the devolvement to the underwriters. Post-rights, the Birlas stake may go up to 47-48% on the expanded capital.
Hindalco launched the rights issue to part-finance the acquisition of Canadian aluminium company Novelis, which it bought for an enterprise value of $6 billion last year. The company had taken a bridge loan of $3.03 billion for the takeover, which expires next month.
In addition to this issue, Hindalco has stitched together a $1-billion loan from a consortium of 11 international banks to finance the Novelis acquisition. The term for the loan is nearly five years. The loan will be raised at a rate of LIBOR plus 280 basis points. The Libor, or the London interbank rate, is the rate at which banks lend money to each other. Hindalco had raised bridge loans at Libor plus 80 basis points last year.
Via:E.T
10 Oct, 2008, 0226 hrs IST,Dev Chatterjee & Kausik Datta, ET Bureau
Dollar may touch Rs 50 in two months, feel experts
9 Oct, 2008, 1700 hrs IST, PTI
NEW DELHI: Indian currency may lose further ground and dollar is likely to touch Rs 50 in the next two months in the wake of global financial crisis, say exporters and economists.
With foreign institutional investors (FIIs) pulling out of the equity markets in the emerging economies, rupee touched a six-year low of 48.47 against dollar yesterday.
If the prevailing sentiment for withdrawal of portfolio funds continues and RBI does not intervene, the dollar can touch Rs 50 in the next 2-3 months, ICRIER Director Rajive Kumar said.
The FIIs have net sold USD 120 million from India in the last three months with the global equity markets receiving a thrashing after collapse of several banks in the US and Europe.
With erosion of over 20 per cent rupee value since April this year, exporters are laughing their way to bank on increased realisations, though some of them got trapped in the exotic derivative contracts of the previous year.
While they want stability in the foreign exchange market, exporters seem to nurse a desire of the rupee touching 50.
"If this trend continues, the domestic currency will touch 50 against dollar in the next two months," Federation of Indian Export Organisations Director General Ajay Sahai said.
On the back of windfall resulting from currency depreciation, India's exports surged by 35.1 per cent between April and August this fiscal.
However, import increase of 37.7 per cent has left a big trade gap of USD 49 billion in the five months of the current fiscal. The trade gap could exert further pressure on the overall current account situation of the country.
The demand for dollar is still high from the oil industry despite a sharp fall in the crude oil prices.
"The scenario is volatile. The rupee would be under pressure but it will remain within 50 mark," CRISIL Principal Economist D K Joshi said.
Notwithstanding the fact that India is sitting on a foreign exchange reserve of USD 292 billion, the FIIs are fleeing the equity markets impacting the overall sentiment.
"Though it is difficult to pinpoint the number, it can touch Rs 50 if the current depreciation trend continues," Punjab National Bank General Manager, Treasury Arun Kaul said.
Via:E.T
NEW DELHI: Indian currency may lose further ground and dollar is likely to touch Rs 50 in the next two months in the wake of global financial crisis, say exporters and economists.
With foreign institutional investors (FIIs) pulling out of the equity markets in the emerging economies, rupee touched a six-year low of 48.47 against dollar yesterday.
If the prevailing sentiment for withdrawal of portfolio funds continues and RBI does not intervene, the dollar can touch Rs 50 in the next 2-3 months, ICRIER Director Rajive Kumar said.
The FIIs have net sold USD 120 million from India in the last three months with the global equity markets receiving a thrashing after collapse of several banks in the US and Europe.
With erosion of over 20 per cent rupee value since April this year, exporters are laughing their way to bank on increased realisations, though some of them got trapped in the exotic derivative contracts of the previous year.
While they want stability in the foreign exchange market, exporters seem to nurse a desire of the rupee touching 50.
"If this trend continues, the domestic currency will touch 50 against dollar in the next two months," Federation of Indian Export Organisations Director General Ajay Sahai said.
On the back of windfall resulting from currency depreciation, India's exports surged by 35.1 per cent between April and August this fiscal.
However, import increase of 37.7 per cent has left a big trade gap of USD 49 billion in the five months of the current fiscal. The trade gap could exert further pressure on the overall current account situation of the country.
The demand for dollar is still high from the oil industry despite a sharp fall in the crude oil prices.
"The scenario is volatile. The rupee would be under pressure but it will remain within 50 mark," CRISIL Principal Economist D K Joshi said.
Notwithstanding the fact that India is sitting on a foreign exchange reserve of USD 292 billion, the FIIs are fleeing the equity markets impacting the overall sentiment.
"Though it is difficult to pinpoint the number, it can touch Rs 50 if the current depreciation trend continues," Punjab National Bank General Manager, Treasury Arun Kaul said.
Via:E.T
Tuesday, October 7, 2008
Cambridge Solutions locked at upper limit of 5% at Rs 65.45 on open offer at premium
Scandent to be now known as Cambridge Solutions.locked at upper limit of 5% at Rs 65.45 on BSE, extending gains for the seventh session in a row after UK-based Xchanging Plc offered Rs 81.11 a share for buying 20% additional stake in the company.
The Cambridge Solutions stock advanced 53.76% in past six session to Rs 62.35 on 6 October 2008 from Rs 40.55 on 25 September 2008.
The stock had a 52-week high of Rs 106.50 on 11 October 2007 and a 52-week low of Rs 34.60 on 25 March 2008.
The small-cap IT services firm has an equity capital of Rs 111.36 crore. Face value per share is Rs 10.
The current price of Rs 65.45 discounts its Q1 June 2008 annualised EPS of Rs 2.69, by a PE multiple of 24.33.
Xchanging Plc is a UK-based back office firm. On Friday, 3 October 2008, Xchanging said it agreed to acquire the company for 83 million pounds, or Rs 686.84 crore in cash and shares. Xchanging aims to have a total 75% holding in Cambridge, including the open offer, it said in the notice. Xchanging aims to have a total 75% holding in Cambridge, including the open offer, it said in the notice.
The open offer for acquiring for 2.25 crore shares, or 20% in Cambridge at Rs 81.11 per share begins on 27 November 2008 and will close on 16 December 2008, according to the public announcement.
Cambridge Solutions’ net profit slipped 56.46% to Rs 7.48 crore on a 40.12% rise in sales to Rs 67.30 crore in Q1 June 2008 over Q4 March 2008.
Cambridge Solutions provides software solutions for industries that include insurance, financial services, government, manufacturing, logistics, public services, and emerging markets such as real estate, healthcare, media, and entertainment.
The Cambridge Solutions stock advanced 53.76% in past six session to Rs 62.35 on 6 October 2008 from Rs 40.55 on 25 September 2008.
The stock had a 52-week high of Rs 106.50 on 11 October 2007 and a 52-week low of Rs 34.60 on 25 March 2008.
The small-cap IT services firm has an equity capital of Rs 111.36 crore. Face value per share is Rs 10.
The current price of Rs 65.45 discounts its Q1 June 2008 annualised EPS of Rs 2.69, by a PE multiple of 24.33.
Xchanging Plc is a UK-based back office firm. On Friday, 3 October 2008, Xchanging said it agreed to acquire the company for 83 million pounds, or Rs 686.84 crore in cash and shares. Xchanging aims to have a total 75% holding in Cambridge, including the open offer, it said in the notice. Xchanging aims to have a total 75% holding in Cambridge, including the open offer, it said in the notice.
The open offer for acquiring for 2.25 crore shares, or 20% in Cambridge at Rs 81.11 per share begins on 27 November 2008 and will close on 16 December 2008, according to the public announcement.
Cambridge Solutions’ net profit slipped 56.46% to Rs 7.48 crore on a 40.12% rise in sales to Rs 67.30 crore in Q1 June 2008 over Q4 March 2008.
Cambridge Solutions provides software solutions for industries that include insurance, financial services, government, manufacturing, logistics, public services, and emerging markets such as real estate, healthcare, media, and entertainment.
XL Telecom & Energy tumbled 15.14% to Rs 86.85
XL Telecom & Energy tumbled 15.14% to Rs 86.85 at 14:28 IST on BSE after the company said Goldman Sachs Investments (Mauritius) sold 1.17% stake in the company on 3 October 2008, reducing its holding to 9.4%.
The stock hit an intra-day low of Rs 86.10, also its 52-week low. It hit an intra-day high of Rs 112 so far. The stock had a 52-week high of Rs 595 on 31 December 2007.
The XL Telecom stock corrected 27.64% in past two trading session to Rs 102.35 on 6 October 2008 from Rs 141.45 on 1 October 2008.
The small-cap telecom equipments maker has an equity capital of Rs 18.78 crore. Face value per share is Rs 10.
The current price of Rs 86.85 discounts its Q4 June 2008 annualised EPS of Rs 24.10, by a PE multiple of 3.60.
XL Telecom & Energy’s net profit rose 143.4% to Rs 11.32 crore on a 31.7% rise in sales to Rs 180.67 crore in Q4 June 2008 over Q4 June 2007.
XL Telecom & Energy is a diversified telecommunications company. The company manufactures products that include mobile handsets, and switch mode power systems. XL also manufactures Solar Photovoltaic Systems, and Ethanol.
The stock hit an intra-day low of Rs 86.10, also its 52-week low. It hit an intra-day high of Rs 112 so far. The stock had a 52-week high of Rs 595 on 31 December 2007.
The XL Telecom stock corrected 27.64% in past two trading session to Rs 102.35 on 6 October 2008 from Rs 141.45 on 1 October 2008.
The small-cap telecom equipments maker has an equity capital of Rs 18.78 crore. Face value per share is Rs 10.
The current price of Rs 86.85 discounts its Q4 June 2008 annualised EPS of Rs 24.10, by a PE multiple of 3.60.
XL Telecom & Energy’s net profit rose 143.4% to Rs 11.32 crore on a 31.7% rise in sales to Rs 180.67 crore in Q4 June 2008 over Q4 June 2007.
XL Telecom & Energy is a diversified telecommunications company. The company manufactures products that include mobile handsets, and switch mode power systems. XL also manufactures Solar Photovoltaic Systems, and Ethanol.
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