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Tuesday, June 30, 2009
Monday, June 29, 2009
IMPACT OF SWINE FLU AND MONSOON ON SHARE PRICE
IMPACT OF SWINE FLU AND MONSOON ON SHARE PRICE
SWINE FLU EFFECT
As the global economy is about to recover from the menace of recession it is now being hit with a series of swine flu cases that is yet to be contained. The outbreak has the origination from Mexico where about more than 100 people has lost their lives. In India till now 63 cases of H1N1 flu were reported.
Many have likened the economic impact of swine flu to that of SARS (Severe Acute Respiratory Syndrome) back in November 2002 to July 2003, which delayed the post-dot-com recovery by several months.
What is Swine flu?
Swine flu is a respiratory disease. WHO says it is caused by influenza type A which infects swine, or pigs. The infection is undergoing constant mutation or change and there are several types of swine flu.
How does the swine flu spread?
The flu spread most likely through coughing or sneezing. The symptoms are quite like that of any other flu. These include fever, cough, sore throat, body ache, chill and fatigue.Treatment for swine flu:
Till now there is no vaccine for the treatment of swine flu. Oseltamivir and Tamiflu are the generic drugs that can be used for the treatment.
ECONOMIC EFFECT OF SWINE FLU:
1. The major outbreak of swine flu could be increasing the cash strapped Indian government thereby increasing the fiscal deficit.2. FII outflow will bring the stock market down.3. Due to the massive capital outflow rupee is likely to depreciate further.4. Industries could be affected as it will disrupt the supply chain.5. GDP is expected to take hit due to decline in economic activity.
INDUSTRIES LIKELY TO BE AFFECTED BY THE SWINE FLU:
(a) TOURISM INDUSTRIES: Tourism Industry which has already been hit by the global economic slowdown is now scared that if the swine flu is not controlled by the time of tourism peak season i.e.; October, it will take a toll on the tourism industry.
(b) AIRLINE: As the swine flu is likely to slow down the movement of people across the country and within the country, it is likely to bring down the occupancy rate of the airline thereby hitting the top line and bottom line.
Other industries will not see a direct impact from the pandemic. But economic slowdown caused by the disease will restrict production and economic activity. This will hit their profitability.
COMPANIES THAT WILL BENEFIT FROM SWINE FLU:
(A) CIPLA: Cipla has the capacity to manufacture up to 1.5 million doses of Oseltamivir. Due to its huge prouction capacity it is expected to benefit if any outbreak happens .
SWINE FLU EFFECT
As the global economy is about to recover from the menace of recession it is now being hit with a series of swine flu cases that is yet to be contained. The outbreak has the origination from Mexico where about more than 100 people has lost their lives. In India till now 63 cases of H1N1 flu were reported.
Many have likened the economic impact of swine flu to that of SARS (Severe Acute Respiratory Syndrome) back in November 2002 to July 2003, which delayed the post-dot-com recovery by several months.
What is Swine flu?
Swine flu is a respiratory disease. WHO says it is caused by influenza type A which infects swine, or pigs. The infection is undergoing constant mutation or change and there are several types of swine flu.
How does the swine flu spread?
The flu spread most likely through coughing or sneezing. The symptoms are quite like that of any other flu. These include fever, cough, sore throat, body ache, chill and fatigue.Treatment for swine flu:
Till now there is no vaccine for the treatment of swine flu. Oseltamivir and Tamiflu are the generic drugs that can be used for the treatment.
ECONOMIC EFFECT OF SWINE FLU:
1. The major outbreak of swine flu could be increasing the cash strapped Indian government thereby increasing the fiscal deficit.2. FII outflow will bring the stock market down.3. Due to the massive capital outflow rupee is likely to depreciate further.4. Industries could be affected as it will disrupt the supply chain.5. GDP is expected to take hit due to decline in economic activity.
INDUSTRIES LIKELY TO BE AFFECTED BY THE SWINE FLU:
(a) TOURISM INDUSTRIES: Tourism Industry which has already been hit by the global economic slowdown is now scared that if the swine flu is not controlled by the time of tourism peak season i.e.; October, it will take a toll on the tourism industry.
(b) AIRLINE: As the swine flu is likely to slow down the movement of people across the country and within the country, it is likely to bring down the occupancy rate of the airline thereby hitting the top line and bottom line.
Other industries will not see a direct impact from the pandemic. But economic slowdown caused by the disease will restrict production and economic activity. This will hit their profitability.
COMPANIES THAT WILL BENEFIT FROM SWINE FLU:
(A) CIPLA: Cipla has the capacity to manufacture up to 1.5 million doses of Oseltamivir. Due to its huge prouction capacity it is expected to benefit if any outbreak happens .
(B) RANBAXY: Ranbaxy has the production capacity that can produce and supply Oseltamivir at very short notice.
MONSOON EFFECT
MONSOON EFFECT
A clear blue sky in June is emerging to be a cause of concern for Dalal Street. A number of broking houses have already put their investors on alert: It is expected weakness in the market and additional pain on the fiscal front in case the monsoon is substantially below normal, which in turn could affect agricultural output. And what is adding to these concerns is the chance of El Nino, a global weather-related phenomenon that usually leads to a draught-like situation in India. So at this point the question that a section of the market players is asking: "Can the Street discount the drizzles and support the three-month old bull run?"
"The delay in the onset of the monsoon and rising El Nino risks has revived memories of the market sell off during the drought of 2002," a report from CLSA, one of the largest foreign brokerages in India, reported few days ago.
El Nino, an abnormal warming of surface ocean waters in the eastern tropical Pacific, is one part of what's called the Southern Oscillation. The Southern Oscillation is the see-saw pattern of reversing surface air pressure between the eastern and western tropical Pacific; when the surface pressure is high in the eastern tropical Pacific it is low in the western tropical Pacific, and vice-versa. Because the ocean warming and pressure reversals are, for the most part, simultaneous, scientists call this phenomenon the El Nino/Southern Oscillation or ENSO for short. South American fisherman have given this phenomenon the name El Nino, which is Spanish for "The Christ Child," because it comes about the time of the celebration of the birth of the Christ Child-Christmas.
Scientists do not really understand how El Nino forms. It is believed that El Nino may have contributed to the 1993 Mississippi and 1995 California floods, drought conditions in South America, Africa and Australia. It is also believed that El Nino contributed to the lack of serious storms such as hurricanes in the North Atlantic which spared states like Florida from serious storm related damage.
Unfortunately not all El Nino's are the same nor does the atmosphere always react in the same way from one El Nino to another. This is why NASA's Earth scientists continue to take part in international efforts to understand El Nino events. Hopefully one day scientists will be able to provide sufficient warning so that we can be better prepared to deal with the damages and changes that El Nino causes in the weather.
To know more about El Nino click the link below :
http://earthobservatory.nasa.gov/Features/ElNino/Anim/elnino.mov
WHAT INDIAN METROLOGICAL DEPARTMENT SAYS?
Going by the prediction of IMD we would have a precipitation of 854 mm the lowest in last 4 years. The levels of water in the reservoirs are also down by 34%. If the spatial and temporal distribution of the rains is poor we may see a drop in Kharrif crop by anywhere between 2-4 %. The IMD had said last week that rainfall for the week ended June 3 was deficient by a substantial 35%. If we believe the IMD that monsoon will be good and will revive around June 20, it is very critical that it does not stay concentrated in a small geographical area, something that could impact overall farm output significantly and, consequently, the nation’s economy and GDP growth. Timely showers help increase yields of crops including rice, corn, soybeans and sugar cane that are planted after the onset of the rainy season.
Due to this delay in monsoon Kharif operations, particularly direct sown paddy will be considerably delayed and will upset the Kharif programme. The agricultural sector is an important contributor to the India GDP. Agriculture sector employs around 60% of the total workforce in India and contributes about 14-15% of the Indian GDP. Agriculture also contributes about 20-25% of our national income, a decline in agricultural growth will pull the overall growth rate in GDP down. Thus, if agricultural output declines, overall GDP will perhaps grow at 5-6% instead of 7-8% per cent. Also there is a direct co-relation between agricultural growth and Industrial production. Over the last one year the domestic industry has been somewhat cushioned from the economic downturn due to local demand. If the agricultural output falls - local demand falls as there is less of disposable income available and that will hit the Indian industry. I would also not rule out a rise in unemployment rate. In case the agricultural output falls we will see higher inflation and import of essential items like sugar. All this coupled together will prove to be bad for the Indian economy. Another thing that is worrying me is the hydel power production that will get impacted due to poor rains. In case the monsoon does not move as predicted government will need to look at its calculations of the PDS. Government will need to act rapidly and advice farmers on things like sowing of short and medium duration crops.
The MET department has said that the monsoon is reviving after a two week delay and is likely to cover Maharashtra, Karnataka and Andhra Pradesh in the next two-three days. But it is already in the middle of June and we are fast losing time. What impact will this have on agricultural production and on consumer demand?
ECONOMIC SIGNIFICANCE OF MONSOON:
Structurally the importance of agriculture as a percentage of GDP has decreased over the past few decades from nearly 50% in the 1970s to 17% now. But monsoon still has the important role to play in the economy as 60% of the total population depends on agriculture. Even today 60% of the agriculture is rainfall dependent.
INDIAN GROWTH STORY TO GET IMPACTED:
As post credit crisis companies have started looking towards the rural India for next big growth opportunity. Bad monsoon will have adverse impact on the company’s growth plan as rural income will decline, which will impact their consumption. Companies are looking towards the rural economy as they are least leveraged as compared to urban India.
Mr Adi Godrej ,Chairman, Godrej Group, the important thing was how the temporal and special distribution of the monsoon panned out. He said "I think it is too early to say that the monsoon is on a failing cause because if it starts soon and if the temporal and special distribution is good, we could still end up with an excellent monsoon and an excellent agricultural year," .He also added that "If we do have a failure of the monsoon after many years, it would have an effect on the gross domestic product (GDP) growth. But not anywhere near what it used to have in the past.”
FOOD STOCK:
According to Mr. A B Mazumdar, Deputy DG, Indian Meteorological Department, the monsoon delay will delay the sowing operation. He further added that the performance of monsoon or the progress of monsoon or advance of monsoon or delay in that didn’t had any impact on the overall performance of the monsoon. “So we can expect good monsoon even though at present things are not progressing as per the normal pattern,” he added.
At present government has the capability to tackle the weak monsoon as the food grain with the government is at 6 year high. But price increase will be more pronounced in cash crop and vegetables and fruits. Rice, sugarcane, cotton, soy and oilseeds are the key kharif crops.
If the rain Gods smile
Two-wheelers: Impact of monsoon on two-wheeler sales would be lesser in future, say analysts, though players like Hero Honda, Bajaj Auto and TVS, who have offerings in the rural segment, should see upsides if the raingods smile.
Tractors: Analysts expect an improvement in yearly figures in the event of a good monsoon this year, with Punjab Tractors and Ashok Leyland expected to benefit most.
FMCG: A good rainy season will lead to a feel-good factor among the rural populace which will lead to higher consumption, though the impact may not be visible till Diwali because of the 'lag-effect'. Companies like HLL and Nirma, which have a larger rural presence, should do well, say analysts.
Cement: More than the monsoon, the restructuring and consolidation happening in the industry and higher prices augur well for cement firms.
Construction, auto-ancillaries and fertiliser: stocks may also see a positive impact due to the spillover effects of a good monsoon.
SECTORS VULNERABLE TO MONSOON:
(A) FMCG
"The delay in the onset of the monsoon and rising El Nino risks has revived memories of the market sell off during the drought of 2002," a report from CLSA, one of the largest foreign brokerages in India, reported few days ago.
El Nino, an abnormal warming of surface ocean waters in the eastern tropical Pacific, is one part of what's called the Southern Oscillation. The Southern Oscillation is the see-saw pattern of reversing surface air pressure between the eastern and western tropical Pacific; when the surface pressure is high in the eastern tropical Pacific it is low in the western tropical Pacific, and vice-versa. Because the ocean warming and pressure reversals are, for the most part, simultaneous, scientists call this phenomenon the El Nino/Southern Oscillation or ENSO for short. South American fisherman have given this phenomenon the name El Nino, which is Spanish for "The Christ Child," because it comes about the time of the celebration of the birth of the Christ Child-Christmas.
Scientists do not really understand how El Nino forms. It is believed that El Nino may have contributed to the 1993 Mississippi and 1995 California floods, drought conditions in South America, Africa and Australia. It is also believed that El Nino contributed to the lack of serious storms such as hurricanes in the North Atlantic which spared states like Florida from serious storm related damage.
Unfortunately not all El Nino's are the same nor does the atmosphere always react in the same way from one El Nino to another. This is why NASA's Earth scientists continue to take part in international efforts to understand El Nino events. Hopefully one day scientists will be able to provide sufficient warning so that we can be better prepared to deal with the damages and changes that El Nino causes in the weather.
To know more about El Nino click the link below :
http://earthobservatory.nasa.gov/Features/ElNino/Anim/elnino.mov
WHAT INDIAN METROLOGICAL DEPARTMENT SAYS?
Going by the prediction of IMD we would have a precipitation of 854 mm the lowest in last 4 years. The levels of water in the reservoirs are also down by 34%. If the spatial and temporal distribution of the rains is poor we may see a drop in Kharrif crop by anywhere between 2-4 %. The IMD had said last week that rainfall for the week ended June 3 was deficient by a substantial 35%. If we believe the IMD that monsoon will be good and will revive around June 20, it is very critical that it does not stay concentrated in a small geographical area, something that could impact overall farm output significantly and, consequently, the nation’s economy and GDP growth. Timely showers help increase yields of crops including rice, corn, soybeans and sugar cane that are planted after the onset of the rainy season.
Due to this delay in monsoon Kharif operations, particularly direct sown paddy will be considerably delayed and will upset the Kharif programme. The agricultural sector is an important contributor to the India GDP. Agriculture sector employs around 60% of the total workforce in India and contributes about 14-15% of the Indian GDP. Agriculture also contributes about 20-25% of our national income, a decline in agricultural growth will pull the overall growth rate in GDP down. Thus, if agricultural output declines, overall GDP will perhaps grow at 5-6% instead of 7-8% per cent. Also there is a direct co-relation between agricultural growth and Industrial production. Over the last one year the domestic industry has been somewhat cushioned from the economic downturn due to local demand. If the agricultural output falls - local demand falls as there is less of disposable income available and that will hit the Indian industry. I would also not rule out a rise in unemployment rate. In case the agricultural output falls we will see higher inflation and import of essential items like sugar. All this coupled together will prove to be bad for the Indian economy. Another thing that is worrying me is the hydel power production that will get impacted due to poor rains. In case the monsoon does not move as predicted government will need to look at its calculations of the PDS. Government will need to act rapidly and advice farmers on things like sowing of short and medium duration crops.
The MET department has said that the monsoon is reviving after a two week delay and is likely to cover Maharashtra, Karnataka and Andhra Pradesh in the next two-three days. But it is already in the middle of June and we are fast losing time. What impact will this have on agricultural production and on consumer demand?
ECONOMIC SIGNIFICANCE OF MONSOON:
Structurally the importance of agriculture as a percentage of GDP has decreased over the past few decades from nearly 50% in the 1970s to 17% now. But monsoon still has the important role to play in the economy as 60% of the total population depends on agriculture. Even today 60% of the agriculture is rainfall dependent.
INDIAN GROWTH STORY TO GET IMPACTED:
As post credit crisis companies have started looking towards the rural India for next big growth opportunity. Bad monsoon will have adverse impact on the company’s growth plan as rural income will decline, which will impact their consumption. Companies are looking towards the rural economy as they are least leveraged as compared to urban India.
Mr Adi Godrej ,Chairman, Godrej Group, the important thing was how the temporal and special distribution of the monsoon panned out. He said "I think it is too early to say that the monsoon is on a failing cause because if it starts soon and if the temporal and special distribution is good, we could still end up with an excellent monsoon and an excellent agricultural year," .He also added that "If we do have a failure of the monsoon after many years, it would have an effect on the gross domestic product (GDP) growth. But not anywhere near what it used to have in the past.”
FOOD STOCK:
According to Mr. A B Mazumdar, Deputy DG, Indian Meteorological Department, the monsoon delay will delay the sowing operation. He further added that the performance of monsoon or the progress of monsoon or advance of monsoon or delay in that didn’t had any impact on the overall performance of the monsoon. “So we can expect good monsoon even though at present things are not progressing as per the normal pattern,” he added.
At present government has the capability to tackle the weak monsoon as the food grain with the government is at 6 year high. But price increase will be more pronounced in cash crop and vegetables and fruits. Rice, sugarcane, cotton, soy and oilseeds are the key kharif crops.
If the rain Gods smile
Two-wheelers: Impact of monsoon on two-wheeler sales would be lesser in future, say analysts, though players like Hero Honda, Bajaj Auto and TVS, who have offerings in the rural segment, should see upsides if the raingods smile.
Tractors: Analysts expect an improvement in yearly figures in the event of a good monsoon this year, with Punjab Tractors and Ashok Leyland expected to benefit most.
FMCG: A good rainy season will lead to a feel-good factor among the rural populace which will lead to higher consumption, though the impact may not be visible till Diwali because of the 'lag-effect'. Companies like HLL and Nirma, which have a larger rural presence, should do well, say analysts.
Cement: More than the monsoon, the restructuring and consolidation happening in the industry and higher prices augur well for cement firms.
Construction, auto-ancillaries and fertiliser: stocks may also see a positive impact due to the spillover effects of a good monsoon.
SECTORS VULNERABLE TO MONSOON:
(A) FMCG
(1) HUL (2) ITC
(B) 2-WHEELERS
(1) Hero Honda (2) Bajaj Auto
(C) FARM EQUIPMENT
(1) Mahindra & Mahindra(2) Escorts
(D) TELECOM
(D) TELECOM
(1) Bharti Airtel (2) Vodafone
(E) PSU BANKS
(E) PSU BANKS
(1) SBI (2) Bank of Baroda
SECTORS TO HAVE LEAST OR NO IMPACT OF MONSOON:
SECTORS TO HAVE LEAST OR NO IMPACT OF MONSOON:
(A) IT
(1) Infosys (2) Wipro
(B) POWER
(B) POWER
(1) NTPC (2) Tata Power
STOCK MARKET REACTION:
It has been seen that good monsoon keeps the stock market in good mood. If there is below normal rainfall or drought like situation the stock market performance will be significantly affected. The affect will be more pronounced because still the investors’ confidence is very fragile. Rising price of food items will make the inflation zooming, which will make the interest in the economy to go up. This will affect the investment and consumption.Good monsoon is not only good for Indian economy but also for stock market.
In terms of potential beneficiary in events of weak monsoon, the government chooses to increase the spending on infrastructure, irrigation and public work. Such increase in the rural expenditure will help firms engaged in (a) Infrastructure(b) Capital goods(c) Construction(d) Irrigation technologyIndirect beneficiary could be sectors like(a) Steel(b) Fertilizers(c) Cement
NEWS FROM THE METEOROLOGICAL DEPARTMENT
FOR KEEPING UPTODATE INFORMATION ON MONSOON PLEASE CLICK ON THE LINK BELOW:
STOCK MARKET REACTION:
It has been seen that good monsoon keeps the stock market in good mood. If there is below normal rainfall or drought like situation the stock market performance will be significantly affected. The affect will be more pronounced because still the investors’ confidence is very fragile. Rising price of food items will make the inflation zooming, which will make the interest in the economy to go up. This will affect the investment and consumption.Good monsoon is not only good for Indian economy but also for stock market.
In terms of potential beneficiary in events of weak monsoon, the government chooses to increase the spending on infrastructure, irrigation and public work. Such increase in the rural expenditure will help firms engaged in (a) Infrastructure(b) Capital goods(c) Construction(d) Irrigation technologyIndirect beneficiary could be sectors like(a) Steel(b) Fertilizers(c) Cement
NEWS FROM THE METEOROLOGICAL DEPARTMENT
FOR KEEPING UPTODATE INFORMATION ON MONSOON PLEASE CLICK ON THE LINK BELOW:
http://www.imd.ernet.in/
For latest Press news on Monsoon visit
http://www.imd.ernet.in/section/nhac/dynamic/lrf.htm
For latest Press news on Monsoon visit
http://www.imd.ernet.in/section/nhac/dynamic/lrf.htm
Sunday, June 28, 2009
UPDATED BACK OFFICE
PLEASE VISIT THE BLOG http://ajoybarman.blogspot.com TO GET UPDATED BACK OFFICE AND CLICK ON "BACK OFFICE" AT THE TOP OF THE BLOG OR ALTERNATIVELY CLICK ON THE LINK BELOW:
Friday, June 26, 2009
INDIA TO INTRODUCE UIN AND IT COMPANIES TO BID FOR THE PROJECT
In what will curtail frauds related to the identity of a person and enhance national security, the government is working on a plan to issue unique identification number to every Indian citizen by 2011. The project is to be implemented by the National Authority for Unique Identity, which will be a part of Planning Commission.
Recently at a launch of Global Credit Card by Punjan National Bank (PNB) , the Planning Commission Deputy Chairman, Montek Singh Ahluwalia said that “By 2011, we should be able to develop a system through which anyone wanting a unique identity number could get it. This will help authorities in easily identifying the citizens of the country,”
The project related to assigning of a unique identification number to every citizen of the country got a start with the government notifying setting up of a national authority for the purpose.The project will ensure a permanent ID card. The special card will carry a unique number, photograph and biometric data of every citizen of the country. It will also have details regarding from birth till death. It would also cover children. The authority would work in close cooperation with the home ministry, which would provide the population data via Registrar General of the Census concurrent to 2011 census. The similar model would be followed at state level.
The proposal to set up the authority was approved by the empowered group of ministers, headed by the external affairs minister Pranab Mukherjee, in November 2008. For long, national identity cards have been advocated to enhance national security, prevent potential terrorist attacks and stop illegal immigration.
The initiative is mainly targeted at cutting down identity-related frauds and addressing security issues, among others aims.The National Authority for Unique Identify (UID), an entity being set up under the Planning Commission of India, will provide the identification number. It will work in cooperation with the similar bodies being set up at the state level, authoritative sources told the news agency.At the outset, the UID number will be assigned to all voters by building on current electoral roll data. Progressively, other persons, including those less than 18 years of age, will be added to the list.Photographs and biometric data would be added to make the identification fool-proof, sources said, adding easy registration and information change procedures are also being envisaged for the benefit of the people. The prototype Click the link below the know more about the history of assigning Identification numbers to the Citizen by the respective Government.
An Empowered Group of Ministers (EGOM) headed by the then External Affairs Minister, Pranab Mukherji, had approved the establishment of a Unique Identity Authority for all residents of the country in November 2008. The UID Authority would be under the Planning Commission. The Home Minister and ministers for IT and Communications, Law and Panchayati Raj were members of the EGOM while the Deputy Chairman, Planning Commission, was a standing invitee. The proposed systems envisages collaboration among several government agencies backed by intensive use of information technology.Sri Nandan Nilekani , the co-chairman of Infosys, has been appointed as the chairperson of the Unique Identification Authority of India.The authority will be responsible for maintaining the core database and laying down the procedure of issuance of smart cards, carrying the unique identification number (UID). It would also specify the usage of the card. Initially, the UID number will be assigned to all voters by building on current electoral roll data.
Once the project is rolled out, each Indian citizen will have one unique identification number that will identify him/her. This will not just help the government track down individuals as is highlighted by the media, but will make life far easier for citizens as they will not have to submit so many documents each time they want to avail a new service — private or government. This will be the equivalent of the social security number in the US. Interestingly, many of the ideas like pension and social security would also be easier to roll out. If used properly, this will also channelize the government subsidies to the right recipients. Click on the link below to have a glimpse of a model of UIN released by PBI.
http://en.wikipedia.org/wiki/File:MNIC_prototype.jpg
Companies who will probably bid if when Govt brings out the tender for $2 Bn Unique IP project. The IT Industry Analyst feel that all the major domestic IT players like TCS, Wipro, Mahindra Satyam and Infosys are likely to bid for this ambitious project
Thursday, June 25, 2009
What is deflation?
What is deflation?
In economic terms deflation is occurring "when prices are declining over time. This is the opposite of inflation; when the inflation rate (by some measure) is negative, the economy is in a deflationary period."
The inflation occurs when money becomes relatively less valuable than goods. Then deflation is simply the opposite, that over time money is becoming relatively more valuable than the other goods in the economy. Following the logic of that article, deflation can occur because of a combination of four factors:
- The supply of money goes down.
- The supply of other goods goes up.
- Demand for money goes up.
- Demand for other goods goes down.
Deflation generally occurs when the supply of goods rises faster than the supply of money, which is consistent with these four factors. These factors explain why the price of some goods increase over time while others decline. Personal computers have sharply dropped in price over the last fifteen years. This is because technological improvements have allowed the supply of computers to increase at a much faster rate than demand or the supply of money.
Why does deflation happen?
A fall in spending -- it could be personal spending or a cut in government expenditure -- leads to deflation. The decline in the supply of money and credit thus leads to deflation.
So, if money-supply decreases; supply of other goods increases, demand for money rises, and the demand for other goods slips, it is deflation.
So, if money-supply decreases; supply of other goods increases, demand for money rises, and the demand for other goods slips, it is deflation.
Why is it bad for the economy?
Deflation is a fall in the price of goods and services. Deflation occurs when the inflation rate falls below zero per cent. This is the opposite of inflation.
When the inflation rate is negative, the economy is in said to be in a deflationary period.
Consequences of deflation?
Deflation leads to a lower level of demand in the economy. It increases the real value of money. It also increases unemployment.
The main effect of deflation is that it gives people a huge incentive not to buy goods. This means that if something costs Rs 100 today, it will cost only Rs 95 next week, thus making people hold off their purchases. The good news is that gives people an incentive to save money.
But as fewer people buy, manufacturers are left with excess inventory. That means they need to reduce their supply, which means they can either stop manufacturing, which causes factory closures and layoffs, or they can reduce prices even further. But the latter causes even more deflation, leading to lower spending, leading to more deflation. Once an economy is caught in this deflationary spiral, it is very hard to climb out. That's why many economists are more worried about present deflation rather than inflation.
Deflation also slows down business development as entrepreneurs are less likely to invest in new business plans if they see a trend towards lower profit margins. As noted in a earlier post, deflation is more of a hinder to a strong economy than inflation.
According to Goldman Sachs, in a deflationary environment, those sectors with a high proportion of variable costs are likely to benefit from falling input prices, Effect of deflation?
The prices may fall in deflation, so is it good?
Is deflation good for you as prices may drop?
A fall in the prices may sound good for consumers. But it is not actually good. The lack in demand may push companies to further lower prices.
This can lead to a situation where the prices of product fall below the cost of manufacturing a product. This in turn forces the companies to cut production, slash jobs and shut down business till demand picks up. This worsens the situation.
EXPECTED DURATION OF DEFLATION IN INDIA
The Deflation is not likely to last long. The monetary and fiscal stimulus measures of the government is likely to boost demand in the long run. In 2010, however, Goldman Sachs expects inflation to come back due to both a gradual pick-up in demand, and conversely, a low base from 2009.
ALKALI METAL
SYMBOL=ALKALI
Face Value=10.00
ISIN Code-INE773I01017
52 week high price=398.00
52 week low price=99.00
FOR HISTORIC PRICES ALKALI METAL CLICK BELOW
Face Value=10.00
ISIN Code-INE773I01017
52 week high price=398.00
52 week low price=99.00
FOR HISTORIC PRICES ALKALI METAL CLICK BELOW
Alkali Metals Limited was incorporated on April 17, 1968 as a joint venture with APIDC. The Company is an ISO 14001:2004 and ISO 9001:2000 certified company engaged in the business of manufacturing sodium derivatives, pyridine derivatives, a range of fine chemicals, based on related chemistry. TheCompany commenced the production of sodium metal, with an installed capacity of 125 MT. There were only a few manufacturers of sodium metal at that time and the technology was not available easily. The Company developed the technology for sodium metal based on in - house R & D capabilities and this was an achievement, considering various hazards in the development and manufacture of the same. The Company has a distinction of developing technology for the manufacture of sodium metal for usage in fast breeder nuclear reactors for power generation and developed technologies for several derivatives based on sodium metal, picoline and various other cyclic compounds. In the year 1986, APIDC exited from the joint venture.
Manufacture of sodium metal is power intensive and with increasing power tariffs, imported sodium metal became more attractive compared to the cost of indigenous production. Hence the Company diversified and built its product portfolio which can be classified into the following three categories:
1. Sodium derivatives
2. Pyridine derivatives
3. Fine chemicals
Products in these categories include amides, hydrides, alkoxides, azides, tetrazoles, pyridine compounds, cyclic compounds, drug and pharma intermediates, specialty fine chemicals etc. Technology for these products was developed in – house which is an achievement, considering hazardous process chemistry involved in the development and manufacture of the same. The company developed suitable systems to ensure safe and smooth functioning of the plants and has got the necessary accreditions. The Company manufactures the above products on bulk and regular basis, on campaign basis and also on contract manufacturing basis.
Apart from the above, the Company has further developed 246 products in the aforesaid categories.
Possessing a distinct technology, developed in house, for manufacturing sodium derivatives, our Company is a major player in the sodium derivatives market. These products cater to both the domestic and overseas markets. The Company’s offshoring capabilities in select chemistries is showcased by the presence of some of the global pharma majors in its customer kitty, Dr. Reddys Laboratories, Aurobindo Pharma, Ranbaxy, Clariant, Novasep, Siber Hegner etc.
The Company also has a dedicated R & D facility recognised by the Ministry of Science and Technology, New Delhi. This facility operates through three modules, being, a laboratory for gram level operation and research, a pilot plant and a proving facility to upscale the production process from pilot plant to a commercial scale and full fledged production.
Currently, the Company has two manufacturing facilities, Unit I and II. Both our units are ISO 9001: 2000 and ISO 14001:2004 certified and both are having combined installed capacity of 4,400 MTPA. While Unit-I is engaged in the manufacture of sodium metals, organo alkali metallics, tetrazoles, amino pyridines and caters to the domestic market, Unit II, a 100% EOU is engaged in the manufacture of pyridine derivatives, cyclic compounds and fine chemicals. These products find wide application and use in various industries like the pharma, agro based products, pesticides, explosives, bio technology products and electroplating chemicals.
Alkali Metals Ltd. manufactures variety of products ranging from Alkali Metal Derivatives, Amino Pyridines, Tetrazoles, Cyclic compounds and Fine chemicals. Ours is a ISO 9001 and 14001 certified company following cGMP Standards.
Alkali Metals Ltd., was established in April 1968 to manufacture Sodium Metal and down stream chemicals in its plant at Hyderabad, India.
Sodium Metal =1970
Sodamide =1973
Sodium Alkoxides =1982
Sodium Azide =1992
Amino Pyridines & Derivatives =1994
Sodium Hydride =1998
Cyclic Compounds =1999
Fine Chemicals =1999
Tetrazoles =1999
Potassium Derivatives =2004
Manufacture of sodium metal is power intensive and with increasing power tariffs, imported sodium metal became more attractive compared to the cost of indigenous production. Hence the Company diversified and built its product portfolio which can be classified into the following three categories:
1. Sodium derivatives
2. Pyridine derivatives
3. Fine chemicals
Products in these categories include amides, hydrides, alkoxides, azides, tetrazoles, pyridine compounds, cyclic compounds, drug and pharma intermediates, specialty fine chemicals etc. Technology for these products was developed in – house which is an achievement, considering hazardous process chemistry involved in the development and manufacture of the same. The company developed suitable systems to ensure safe and smooth functioning of the plants and has got the necessary accreditions. The Company manufactures the above products on bulk and regular basis, on campaign basis and also on contract manufacturing basis.
Apart from the above, the Company has further developed 246 products in the aforesaid categories.
Possessing a distinct technology, developed in house, for manufacturing sodium derivatives, our Company is a major player in the sodium derivatives market. These products cater to both the domestic and overseas markets. The Company’s offshoring capabilities in select chemistries is showcased by the presence of some of the global pharma majors in its customer kitty, Dr. Reddys Laboratories, Aurobindo Pharma, Ranbaxy, Clariant, Novasep, Siber Hegner etc.
The Company also has a dedicated R & D facility recognised by the Ministry of Science and Technology, New Delhi. This facility operates through three modules, being, a laboratory for gram level operation and research, a pilot plant and a proving facility to upscale the production process from pilot plant to a commercial scale and full fledged production.
Currently, the Company has two manufacturing facilities, Unit I and II. Both our units are ISO 9001: 2000 and ISO 14001:2004 certified and both are having combined installed capacity of 4,400 MTPA. While Unit-I is engaged in the manufacture of sodium metals, organo alkali metallics, tetrazoles, amino pyridines and caters to the domestic market, Unit II, a 100% EOU is engaged in the manufacture of pyridine derivatives, cyclic compounds and fine chemicals. These products find wide application and use in various industries like the pharma, agro based products, pesticides, explosives, bio technology products and electroplating chemicals.
Alkali Metals Ltd. manufactures variety of products ranging from Alkali Metal Derivatives, Amino Pyridines, Tetrazoles, Cyclic compounds and Fine chemicals. Ours is a ISO 9001 and 14001 certified company following cGMP Standards.
Alkali Metals Ltd., was established in April 1968 to manufacture Sodium Metal and down stream chemicals in its plant at Hyderabad, India.
Sodium Metal =1970
Sodamide =1973
Sodium Alkoxides =1982
Sodium Azide =1992
Amino Pyridines & Derivatives =1994
Sodium Hydride =1998
Cyclic Compounds =1999
Fine Chemicals =1999
Tetrazoles =1999
Potassium Derivatives =2004
Expertise
Expertise in the production of hazardous chemicals like Alkali Metals, AlkaliMetalamides, Alkoxides and Organo Metallic products,Sodium Hydride,Amino Pyridines,Pyridine Derivatives and Tetrazoles.
Specialised Reactions
Facility available for carrying-out specialized reactions like Nitration,Diazotisation, Chlorination,Bromination,N-oxidation, Reduction,Chichibabin, Organo Metallics, Cyclisation.
Expertise in the production of hazardous chemicals like Alkali Metals, AlkaliMetalamides, Alkoxides and Organo Metallic products,Sodium Hydride,Amino Pyridines,Pyridine Derivatives and Tetrazoles.
Specialised Reactions
Facility available for carrying-out specialized reactions like Nitration,Diazotisation, Chlorination,Bromination,N-oxidation, Reduction,Chichibabin, Organo Metallics, Cyclisation.
FORTHCOMING IPO
MAHINDRA HOLIDAYS & RESORTS INDIA LIMITED
Mahindra Holidays & Resorts India Ltd., (MHRIL) a part of the Infrastructure Sector of the Mahindra Group, brings to the industry values such as Reliability, Trust and Customer Satisfaction. Started in 1996, the company’s flagship brand ‘Club Mahindra Holidays’, today has a fast growing customer base of over 79,000 members and 23 beautiful Resorts at some of the most exotic spots in India and abroad. Over the last decade, MHRIL have established themselves as market leaders in the family holidays business. The company have followed a two pronged strategy – rapidly increasing its bouquet of resorts to provide more variety in holidaying options and enhancing its service levels to its members to provide delight at every point of interaction.
All MHRIL resorts are totally geared to cater to a variety of holiday needs and experiences in all areas of operation, from housekeeping to food & beverage to holiday activities. Creating and managing the holiday experience is a core strength.
MHRIL has made significant investments in ‘state of the art’ IT systems to streamline their operations and processes towards smooth, quick and efficient management of its substantial member base. The implementation of a CRM system has been a powerful tool to track important member information and preferences, thus providing the ability to greatly enhance the total holiday experience.
Mahindra Holidays & Resorts India Ltd. Is a part of the USD 6.7 billion Mahindra Group, one of India’s leading Industrial Houses. The Group has interests in various sectors such as Automotive, Auto Components, Farm Equipment, Trade & Financial Services, Infrastructure and Information Technology. Mahindra & Mahindra has a successful track record as the Market Leader in each Sector.
IPO DETAILS
Symbol - Series = MHRIL EQ
Issue Period = June 23, 2009 to June 26, 2009
Issue Size =92,65,275 EQUITY SHARES
Issue Type =100% Book Building
Face Value=Rs. 10/-
Price Range =Rs. 275 To Rs. 325.
Tick Size =Re. 1/-
Market Lot=20 Equity Shares
Minimum Order Quantity=20 Equity Shares
Maximum Subscription Amount for Retail Investor=Rs.100000
IPO Market Timings=10.00 a.m. to 5.00 p.m.
IPO Grading=Fitch IPO Grade 4(ind)
Book Running Lead Manager =Kotak Mahindra Capital Company Limited, HSBC Securities and Capital Markets (India) Private Limited & SBI Capital Markets Limited
Syndicate Member=Kotak Securities Limited & SBICAP Securities Limited
Categories=FI, IC, VC, MF, FII, FVCI, SIDC, PF, PEF, MLA, BDFI, NIF, CO, IND, HUF, NRI , and OTH
No. of Cities with Bidding Centers=55
Name of the registrar=Karvy Computershare Private Limited
Address of the registrar=Plot No. 17 to 24, Vithalrao Nagar, Madhapur, Hyderabad 500 081.
Contact person name number and Email id=Mr. M. Murali krishna, Tel: (91 40) 2342 0815-20 Fax: (91 40) 2342 0814,E-mail: einward.ris@karvy.com
PORTFOLIO OF YOUR SHARE
MY ALL FRIENDS WHO HAVE INVESTED IN SHARE MARKET THROUGH ME CAN PREPARE THEIR PORTFOLIO OF SHARE CLICKING IN THE LINK " YOUR PORTFOLIO" . THE CAN TRACK THEIR INVESTMENT OR UPDATE THEIR PORTFOLIO AFTER LOGIN. PASSWORD FOR LOGIN WILL BE EITHER MAILED OR WILL BE SEND BY SMS.
Tuesday, June 23, 2009
CHARGES/TAXES THAT YOU HAVE TO PAY IN INTRADAY AND DELIVERY
CHARGES/TAXES THAT YOU HAVE TO PAY IN INTRADAY AND DELIVERY
*Brokerage: 0.5% for Delivery & 0.05% for Day Trading; Round off to two digits then multiply by no.of shares*Service Tax: 12.2% of brokerage (Rounded off to two digits)*Educational cess: 2% of Service Tax*STT: 0.1% of Total traded value of the day for Delivery & 0.01% for Intraday*Ex levy: 0.0035% of Total Traded value of the day*Stamp Duty: 0.01% of Total traded value of the day for Delivery & 0.002% for Intraday
For Example
1)If you purchased 200 shares of AXIS BANK on 26/03/2008 at 808.00 and sold them same day at 830.00 then STT for Intraday is :0 for buy and 0.025% for sell and STT for delivery is 0.125% for buy and 0.125% for sellHere the calculation should be for Intraday 830*200=166000.00166000.00*0.025/100=41.50(STT)
2) Security: AXIS BANK LIMITED
Buy Qty, rate, total, brokerage, service tax, STT, amount
200, 808.00, 161600.00, 48.48, 5.82, 0.00, 161654.30
Sell Qty, rate, total, brokerage, service tax, STT, amount,
200, 830.00, 166000.00, 49.80, 5.98, 40.95, 165903.27
Security: RELIANCE NATURAL RESOURCES LTD
Buy Qty, rate, total, brokerage, service tax, STT, amount
2000, 100.95, 201900.00, 60.60, 7.27, 0.00, 201967.87
Sell Qty, rate, total, brokerage, service tax, STT, amount
2000, 100.00, 199994.40, 60.00, 7.20, 50.24, 199876.96
Net Of Current Trades :2275.62 Cr
Service Tax :26.27
Education Cess: 0.53
Higher Education Cess :0.26
STT Amt : 91.50
Stamp Duty :14.59
Turnover Charges :25.54
Net Amount :2117.24 Due to You
Calculation of STT will be
166,000 * 0.025% = 41.50
200,000 * 0.025% = 50.00
Total STT = 41.50+50 = 91.50
Dematerialisation
What is dematerialisation?
Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the BO’s account with his DP.
Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the BO’s account with his DP.
How can one convert physical holding into electronic holding i.e. how can one dematerialise securities?
In order to dematerialise physical securities one has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical certificates that are to be dematerialised. Separate DRF has to be filled for each ISIN. The complete process of dematerialisation is outlined below:
· Surrender certificates for dematerialisation to your DP.
· DP intimates to the Depository regarding the request through the system.
· DP submits the certificates to the registrar of the Issuer Company.
· Registrar confirms the dematerialisation request from depository.
· After dematerialising the certificates, Registrar updates accounts and informs depository regarding completion of dematerialisation.
· Depository updates its accounts and informs the DP.
· DP updates the demat account of the investor.
What is an ISIN?
ISIN (International Securities Identification Number) is a unique 12 digit alpha-numeric identification number allotted for a security (E.g.- INE383C01018). Equity-fully paid up, equity-partly paid up, equity with differential voting /dividend rights issued by the same issuer will have different ISINs.
Can odd lot shares be dematerialised?
Yes, odd lot share certificates can also be dematerialised.
Do dematerialised shares have distinctive numbers?
Dematerialised shares do not have any distinctive numbers. These shares are fungible, which means that all the holdings of a particular security will be identical and interchangeable.
Can electronic holdings be converted back into physical certificates?
Yes. The process is called rematerialisation. If one wishes to get back his securities in the physical form he has to fill in the RRF (Remat Request Form) and request his DP for rematerialisation of the balances in his securities account. The process of rematerialisation is outlined below:
• Make a request for rematerialisation.
• Depository participant intimates depository regarding the request through the system.
• Depository confirms rematerialisation request to the registrar.
• Registrar updates accounts and prints certificates.
• Depository updates accounts and downloads details to depository participant.
• Registrar dispatches certificates to investor.
In order to dematerialise physical securities one has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical certificates that are to be dematerialised. Separate DRF has to be filled for each ISIN. The complete process of dematerialisation is outlined below:
· Surrender certificates for dematerialisation to your DP.
· DP intimates to the Depository regarding the request through the system.
· DP submits the certificates to the registrar of the Issuer Company.
· Registrar confirms the dematerialisation request from depository.
· After dematerialising the certificates, Registrar updates accounts and informs depository regarding completion of dematerialisation.
· Depository updates its accounts and informs the DP.
· DP updates the demat account of the investor.
What is an ISIN?
ISIN (International Securities Identification Number) is a unique 12 digit alpha-numeric identification number allotted for a security (E.g.- INE383C01018). Equity-fully paid up, equity-partly paid up, equity with differential voting /dividend rights issued by the same issuer will have different ISINs.
Can odd lot shares be dematerialised?
Yes, odd lot share certificates can also be dematerialised.
Do dematerialised shares have distinctive numbers?
Dematerialised shares do not have any distinctive numbers. These shares are fungible, which means that all the holdings of a particular security will be identical and interchangeable.
Can electronic holdings be converted back into physical certificates?
Yes. The process is called rematerialisation. If one wishes to get back his securities in the physical form he has to fill in the RRF (Remat Request Form) and request his DP for rematerialisation of the balances in his securities account. The process of rematerialisation is outlined below:
• Make a request for rematerialisation.
• Depository participant intimates depository regarding the request through the system.
• Depository confirms rematerialisation request to the registrar.
• Registrar updates accounts and prints certificates.
• Depository updates accounts and downloads details to depository participant.
• Registrar dispatches certificates to investor.
Monday, June 22, 2009
WHAT IS ADR
Introduced to the financial markets in 1927, an American Depository Receipt (ADR) is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued/sponsored in the U.S. by a bank or brokerage. ADRs were introduced as a result of the complexities involved in buying shares in foreign countries and the difficulties associated with trading at different prices and currency values. For this reason, U.S. banks simply purchase a bulk lot of shares from the company, bundle the shares into groups, and reissues them on either the New York Stock Exchange (NYSE), American Stock Exchange (AMEX) or the NASDAQ. In return, the foreign company must provide detailed financial information to the sponsor bank. The depositary bank sets the ratio of U.S. ADRs per home-country share. This ratio can be anything less than or greater than 1. This is done because the banks wish to price an ADR high enough to show substantial value, yet low enough to make it affordable for individual investors. Most investors try to avoid investing in penny stocks , and many would shy away from a company trading for 50 Russian roubles per share, which equates to US$1.50 per share. As a result, the majority of ADRs range between $10 and $100 per share. If, in the home country, the shares were worth considerably less, then each ADR would represent several real shares. There are three different types of ADR issues:
Level 1 - This is the most basic type of ADR where foreign companies either don't qualify or don't wish to have their ADR listed on an exchange. Level 1 ADRs are found on the over the counter market and are an easy and inexpensive way to gauge interest for its securities in North America. Level 1 ADRs also have the loosest requirements from the Securities and Exchange Commission.
Level 2 - This type of ADR is listed on an exchange or quoted on Nasdaq. Level 2 ADRs have slightly more requirements from the SEC, but they also get higher visibility trading volume.
Level 3 - The most prestigious of the three, this is when an issuer floats a public offerings of ADRs on a U.S. exchange. Level 3 ADRs are able to raise capital and gain substantial visibility in the U.S. financial markets. The advantages of ADRs are twofold. For individuals, ADRs are an easy and cost-effective way to buy shares in a foreign company. They save money by reducing administration costs and avoiding foreign taxes on each transaction. Foreign entities like ADRs because they get more U.S. exposure, allowing them to tap into the wealthy North American equities markets.
SOME INDIAN ADRs
ARVIND MILLS LTD. 144A
ASHOK LEYLAND LTD. 144A
BAJAJ AUTO LIMITED 144A
BSES LIMITED 144A GDR
CENTURY TEXTILES AND INDUTRIES LTD. GDR
CESC LIMITED 144A
CORE HEALTH CARE PRODUCTS GDR
CROMPTON GREAVES LIMITED 144A GDR
DCW LIMITED
DR. REDDY'S LABORATORIES LTD 144A
EID PARRY (INDIA) LIMITED 144A
EIH LIMITED 144A
FINOLEX CABLES LIMITED GDR
GRASIM INDUSTRIES LIMITED
GREAT EASTERN SHIPPING CO. LTD. 144A
GUJARAT NARMADA VALLEY 144A
HIMACHAL FUTURISTIC 144A
HINDALCO INDUSTRIES LTD. 144A
HINDALCO INDUSTRIES LTD. WARRANT
INDIA CEMENTS LIMITED 144A, THE
INDIAN ALUMINIUM CO. LTD. 144A
INDIAN HOTEL CO. LTD.
INDIAN PETROCHEMICALS CORP. LTD. 144A
INDIAN PETROCHEMICALS CORP. LTD. 144A
INDIAN RAYON & INDUSTRIES LTD. 144A
INDO GULF FERTILIZERS AND CHEMICAL CO.
INDO RAMA SYNTHETICS (INDIA) LTD 144A
INDUSTRIAL CREDIT & INVESTMENT CORP
JCT LIMITED 144A
JK CORP LIMITED 144A GDR
KESORAM INDUSTRIES CO., LTD.
LARSEN & TOUBRO LIMITED 144A
LARSEN & TOUBRO LIMITED GDR
MAHANAGAR TELEPHONE NIGAM LTD. 144A
MAHINDRA & MAHINDRA LTD.144A
NEPC-MICON LIMITED 144A
RANBAXY LABORATORIES 144A
RAYMOND WOOLLEN MILLS LTD. 144A, THE
RELIANCE INDUSTRIES LIMITED 144A
SANGHI POLYESTERS LIMITED 144A GDR
SIEL LIMITED
SIV INDUSTRIES LIMITED 144A GDRS
SOUTHERN PETROCHEMICAL INDUSTRIES 144A
STATE BANK OF INDIA 144A
STEEL AUTHORITY OF INDIA LIMITED GDR
TATA ELECTRIC COMPANIES
TATA ENGINEERING AND LOCOMOTIVE CO. LTD.
TUBE INVESTMENTS OF INDIA LTD. 144A
USHA BELTON LTD.
VIDEOCON INTERNATIONAL 144A
VIDESH SANCHAR NIGAM LTD (VSNL) 144A
ENNORE COKE GROUP:T
CMP 29.55P(AS ON 19-06-2009)
52WEEKS HIGH Rs.55/-
52 WEEKS LOW Rs.12/-
CMP 29.55P(AS ON 19-06-2009)
52WEEKS HIGH Rs.55/-
52 WEEKS LOW Rs.12/-
INDUSTRY
Coke is a derivative of metallurgical coking coal and plays a very significant role in metallurgical process. Coke is the main source of heat and is also a the reducing agent required to facilitate the conversion of metallurgical ores into metal in the smelting process. It fins useful application in steel plants, foundries, blast furnace, soda ash manufacturing, Graphite Industry and other chemicals. Met coke is also used for making pig iron from blast furnace , making Ferro alloys;fertilizer;calcium carbide; as filter coke for polygranular carbon products,
China is the largest coke producer , as well as the largest coke consumer in the world. Total output of China is 61% of that of the world.
The Indian Coke Industry is dominated by the Integrated Steel Plants (ISPs). These units possess captive coking facilities. The production/consumption of Coke by ISPs is estimated at 12.8 Million Tons (FY 2002-2003).
India has largely been an importer of coke from China and Japan. More than 85% of the imported coke is of Chinese origin. Even the Coke imported from Japan is indirectly Chinese since Japans imports from China are more than what it exports to other countries. The price of Coke has gone up to Rs.22000 a tonne from Rs.18000 a tonne while metallurgical coke of domestic origin is quoted at Rs.13000-14000 a tonne with 18% ash content. The bench mark variety with 12% cash content metallurgical coke in India is sold at Rs.22000/- a tonne. The prices of iron ore have also spurted by 25%, affecting margins. Thereby , independent pig iron producers have reduced their production capacity by half despite huge buildups of demand from steel producers. A major part of the imported coke is consumed in the Southern and Western region. The deficit of 14mn tons is expected to grow to nearly 40mn tons by 2011-12.
THE COMPANY
In India, Ennore Coke Ltd. Is the in the business of trading of coal and coke and decided to manufacture Met Coke. The company has agreed to purchase the Non-Recovery Coke Oven Project of 100,000TPA of Met Coke at Haldia , West Bengal. Ennore coke is exporting 45% of the entire production to the export s markets mainly to Pakistan, Iran, UAE and Belgium. The quantum of exports is expected to rise by 60-67% in the next three to four months.
The Current demand for coke , in the domestic market , is around 32MT and there has been a deficit supply of 11.3MMT. With vast market still untapped, the impact of economic meltdown on the coke industry is unlikely to be very significant.
The Primary plant of Ennore Coke is based in Haldia with 130,000mt pa. They have also a plant at Cuttack with enhanced capacity of 100,00mtpa. Ennore coke has tied up facilities at Durgapur, West Bengal and Nergundi , Orissa. Buoyed by the conversion facility the company has recorded a turnover of more than Rs.100 crore in the last financial year.
Ennore Coke Limited is a public Limited Company and is in the process of establishing metallurgical coke plant with a capacity if 1.30Lac TPA and a waste heat recovery based power plant of 13MW capacity in Haldia.
The Vision of Ennore Coke Ltd , is to offer the best products and services on the strength of a dedicated workforce and best business practices. Majority of met coke requirements are imported from China , which has recently raised the Export duty to 40% from existing level of 25% and that of cooking coal is increased to 10% from existing 5%. The demand for met Coke will continue to move upwards, given the yawning gap between the demand and supply. The coke market is strong and prices have reached records highs, yet there are worries over the short term future as coal supply is stifled in China, South Africa and Australia. The supplies have been affected by the Power shortage, severe weather and fear over supplies ti major user as such steel has potential to push prices even higher.
With the Groups $5.5 billion back up, Ennore Coke will be the domestic leader in the Met Coke Sector, making high Quality Met Coke and clean power in three years.
China is the largest coke producer , as well as the largest coke consumer in the world. Total output of China is 61% of that of the world.
The Indian Coke Industry is dominated by the Integrated Steel Plants (ISPs). These units possess captive coking facilities. The production/consumption of Coke by ISPs is estimated at 12.8 Million Tons (FY 2002-2003).
India has largely been an importer of coke from China and Japan. More than 85% of the imported coke is of Chinese origin. Even the Coke imported from Japan is indirectly Chinese since Japans imports from China are more than what it exports to other countries. The price of Coke has gone up to Rs.22000 a tonne from Rs.18000 a tonne while metallurgical coke of domestic origin is quoted at Rs.13000-14000 a tonne with 18% ash content. The bench mark variety with 12% cash content metallurgical coke in India is sold at Rs.22000/- a tonne. The prices of iron ore have also spurted by 25%, affecting margins. Thereby , independent pig iron producers have reduced their production capacity by half despite huge buildups of demand from steel producers. A major part of the imported coke is consumed in the Southern and Western region. The deficit of 14mn tons is expected to grow to nearly 40mn tons by 2011-12.
THE COMPANY
In India, Ennore Coke Ltd. Is the in the business of trading of coal and coke and decided to manufacture Met Coke. The company has agreed to purchase the Non-Recovery Coke Oven Project of 100,000TPA of Met Coke at Haldia , West Bengal. Ennore coke is exporting 45% of the entire production to the export s markets mainly to Pakistan, Iran, UAE and Belgium. The quantum of exports is expected to rise by 60-67% in the next three to four months.
The Current demand for coke , in the domestic market , is around 32MT and there has been a deficit supply of 11.3MMT. With vast market still untapped, the impact of economic meltdown on the coke industry is unlikely to be very significant.
The Primary plant of Ennore Coke is based in Haldia with 130,000mt pa. They have also a plant at Cuttack with enhanced capacity of 100,00mtpa. Ennore coke has tied up facilities at Durgapur, West Bengal and Nergundi , Orissa. Buoyed by the conversion facility the company has recorded a turnover of more than Rs.100 crore in the last financial year.
Ennore Coke Limited is a public Limited Company and is in the process of establishing metallurgical coke plant with a capacity if 1.30Lac TPA and a waste heat recovery based power plant of 13MW capacity in Haldia.
The Vision of Ennore Coke Ltd , is to offer the best products and services on the strength of a dedicated workforce and best business practices. Majority of met coke requirements are imported from China , which has recently raised the Export duty to 40% from existing level of 25% and that of cooking coal is increased to 10% from existing 5%. The demand for met Coke will continue to move upwards, given the yawning gap between the demand and supply. The coke market is strong and prices have reached records highs, yet there are worries over the short term future as coal supply is stifled in China, South Africa and Australia. The supplies have been affected by the Power shortage, severe weather and fear over supplies ti major user as such steel has potential to push prices even higher.
With the Groups $5.5 billion back up, Ennore Coke will be the domestic leader in the Met Coke Sector, making high Quality Met Coke and clean power in three years.
Saturday, June 20, 2009
STT (Securities Transaction Tax)
STT(Securities Transaction Tax)
The Securities Transaction Tax (STT) was introduced by Chapter VII of the Finance Act (No.2) Act, 2004. On July 8, 2004, India's Finance Minister, P. Chidambaram, presented Finance Bill (Bill No. 22, 2004) in Parliament in which he proposed the introduction of Securities Transaction Tax (STT) in the Indian financial markets. Under the proposal, every transaction in securities in a recognized stock exchange in India would attract a turnover tax of 0.15 per cent. The STT was introduced in order to simplify the tax regime on financial market transactions. While introducing the STT, it was proposed to abolish the tax on long-term capital gains altogether and reduced the short-term capital gains tax from 33 per cent to 10 per cent.
There is no denying that STT acts as an efficient instrument to collect the taxes, as many market players fudge transactions to evade capital gains taxes but it would be erroneous to consider STT (indirect tax) as a substitute to capital gains tax (direct tax).
STT is applied as following (effective from June 1st, 2005):
For transactions in a recognized stock exchange in India:
Purchase/Sale of equity shares, units of equity oriented mutual fund (delivery based) - 0.10%
Sale of equity shares, units of equity oriented mutual fund (non-delivery based) - 0.02%
Sale of derivative - 0.01% Sale of unit of an equity oriented fund to the mutual fund - 0.2%
Items that fall under category of ’securities’
‘Securities’ are defined under Section 2(h) of the Securities Contracts (Regulation) Act, 1956 (SCRA) to include:
i. Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate
ii. Derivatives
iii. Units or any other instrument issued by any collective investment scheme to the investors in such schemes
iv. Security receipt as defined in Section 2(zg) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
v. Such other instruments as declared by the Central Government; and
vi. Rights or interest in securities
vii. Equity-oriented mutual funds (not debt-oriented mutual funds)
STT is not applicable in case of government securities, bonds, debentures and units of mutual fund other than equity oriented mutual fund.
Tax exemptions in regards to short term and long term capital gains
Long Term capital gains:
For sale of equity shares, units of equity oriented mutual fund (delivery based), the gains are exempt from tax under section 10(38)
For sale of unit of an equity oriented fund to the mutual fund, the gains are exempt from tax under section 10(38)
Short Term capital gains:
For sale of equity shares, units of equity oriented mutual fund (delivery based), the gains are taxable at the rate of 10% (+surcharge +education cess) under section 111A
For sale of unit of an equity oriented fund to the mutual fund, the gains are taxable at the rate of 10% (+surcharge +education cess) under section 111A
Sales of equity shares, units of equity oriented mutual fund (non-delivery based) and Sales of derivatives are both treated as business income. If income is shown as business income, one can claim tax rebate under section 88E.
For Details click http://mof.gov.in/the_ministry/dept_revenue/revenue_headquarters/cbdt/SecuTransTaxRules.pdf
The Securities Transaction Tax (STT) was introduced by Chapter VII of the Finance Act (No.2) Act, 2004. On July 8, 2004, India's Finance Minister, P. Chidambaram, presented Finance Bill (Bill No. 22, 2004) in Parliament in which he proposed the introduction of Securities Transaction Tax (STT) in the Indian financial markets. Under the proposal, every transaction in securities in a recognized stock exchange in India would attract a turnover tax of 0.15 per cent. The STT was introduced in order to simplify the tax regime on financial market transactions. While introducing the STT, it was proposed to abolish the tax on long-term capital gains altogether and reduced the short-term capital gains tax from 33 per cent to 10 per cent.
There is no denying that STT acts as an efficient instrument to collect the taxes, as many market players fudge transactions to evade capital gains taxes but it would be erroneous to consider STT (indirect tax) as a substitute to capital gains tax (direct tax).
STT is applied as following (effective from June 1st, 2005):
For transactions in a recognized stock exchange in India:
Purchase/Sale of equity shares, units of equity oriented mutual fund (delivery based) - 0.10%
Sale of equity shares, units of equity oriented mutual fund (non-delivery based) - 0.02%
Sale of derivative - 0.01% Sale of unit of an equity oriented fund to the mutual fund - 0.2%
Items that fall under category of ’securities’
‘Securities’ are defined under Section 2(h) of the Securities Contracts (Regulation) Act, 1956 (SCRA) to include:
i. Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate
ii. Derivatives
iii. Units or any other instrument issued by any collective investment scheme to the investors in such schemes
iv. Security receipt as defined in Section 2(zg) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
v. Such other instruments as declared by the Central Government; and
vi. Rights or interest in securities
vii. Equity-oriented mutual funds (not debt-oriented mutual funds)
STT is not applicable in case of government securities, bonds, debentures and units of mutual fund other than equity oriented mutual fund.
Tax exemptions in regards to short term and long term capital gains
Long Term capital gains:
For sale of equity shares, units of equity oriented mutual fund (delivery based), the gains are exempt from tax under section 10(38)
For sale of unit of an equity oriented fund to the mutual fund, the gains are exempt from tax under section 10(38)
Short Term capital gains:
For sale of equity shares, units of equity oriented mutual fund (delivery based), the gains are taxable at the rate of 10% (+surcharge +education cess) under section 111A
For sale of unit of an equity oriented fund to the mutual fund, the gains are taxable at the rate of 10% (+surcharge +education cess) under section 111A
Sales of equity shares, units of equity oriented mutual fund (non-delivery based) and Sales of derivatives are both treated as business income. If income is shown as business income, one can claim tax rebate under section 88E.
Thursday, June 18, 2009
BHAGYANAGAR INDIA
BHAGYANAGAR INDIA
Trading at 27/- in NSE and BSE;
Company BUY BACK AT 40/- Target 45/- for short term.
Trading at 27/- in NSE and BSE;
Company BUY BACK AT 40/- Target 45/- for short term.
Use this Market correction time to Buy with this very less risk Stock.Lot of News Coming out soon. Just Buy at 25/- hold 1 week to 1 month u will get good returns from 50% to 300% because Buyback at 40/- and company having lot of reserves and company having good land bank in Hyderabad, Uppal that land value is per share its come around 150/-.
Bhagyanagar India Buyback Shares price of 40/- is just at a 40% discount available in Market at 25.5/-. Buyback gives a signal that the company is cash rich. Good dividend giving company; giving every year 30% dividend.
Bhagyanagar India Ltd in the field of manufacturing of Copper and Telecom Products, Real Estate & INFRASTRUCTURE and Non Conventional Energy.
Bhagyanagar India Ltd has informed that M/s. Fab city SPV (India) Pvt Ltd, a subsidiary of APIIC has made an allotment of 25 Acers of land (initially 10 Acres and has reserved 15 Acres for future use) on lease in the Fab City, Hyderabad to the Joint Venture Company “M/s. Surana Ventures Ltd”, jointly promoted by the Company & M/s. Surana Telecom and Power Ltd for setting up the Solar Photo Voltaic Cell and Module Project. The JV Company has made the payment of lease premium and is awaiting the possession of land.
Further, the JV Company has placed firm orders for the supply of 19 MW Solar Photo voltaic production line each on M/s. ECO PROGETTI, of Italy and M/s. P Energy S.R.L of Italy for the 38 MW Solar Photo Voltaic Module project.
Bhagyanagar India Ltd has informed BSE that the Company, through its subsidiary M/s. Metropolitan Ventures India Ltd, has purchased 25 acres of land near the new Hyderabad International Airport.
Further, as reported earlier the Company has acquired 50 acres of land in a Multi-product SEZ, at Sricity near Chennai, which has now received formal approval from the Central Government.
The Company has also commenced work on the hardware park and residential projects near Hyderabad.
Bhagyanagar Metals Ltd has informed that the Company has completed acquisition of 25 acres of land at Gadchibowli, Hyderabad through its 100% owned subsidiaries M/s Bhagyanagar Properties Ltd and M/s Scientia Infocom India Ltd.
Gadchibowli is the main IT park location where prime companies have their Campus.
Bhagyanagar India Ltd has informed that the Company has finalized plans to set up an IT park at Hyderabad with a total outlay of about Rs 120 Crores and with a built up area of 800,000 sft in 6 acres of plot, out of 12 acres. The Company has sold the balance 6 acres of land to M/s. Himadri Enterprises Pvt Ltd, Mumbai. The proceeds of this sale will be used for constructing the IT Pork, which would include a shopping center and Entertainment Complex.
And recently company try to get Infra Projects also.
Good Dividend Paying Company; Equity Just 14 Crores; Promoters Holding 59.75%.
Good Land Bank in Hyderabad, Chennai .
Good land bank in the heart of Hyderabad at uppal which itself is as asset for the company. with a valuation of 150rs/share holder.
Buy at current price trading at 25/- with target of 45/- and 55/- within short time.
Bhagyanagar India Buyback Shares price of 40/- is just at a 40% discount available in Market at 25.5/-. Buyback gives a signal that the company is cash rich. Good dividend giving company; giving every year 30% dividend.
Bhagyanagar India Ltd in the field of manufacturing of Copper and Telecom Products, Real Estate & INFRASTRUCTURE and Non Conventional Energy.
Bhagyanagar India Ltd has informed that M/s. Fab city SPV (India) Pvt Ltd, a subsidiary of APIIC has made an allotment of 25 Acers of land (initially 10 Acres and has reserved 15 Acres for future use) on lease in the Fab City, Hyderabad to the Joint Venture Company “M/s. Surana Ventures Ltd”, jointly promoted by the Company & M/s. Surana Telecom and Power Ltd for setting up the Solar Photo Voltaic Cell and Module Project. The JV Company has made the payment of lease premium and is awaiting the possession of land.
Further, the JV Company has placed firm orders for the supply of 19 MW Solar Photo voltaic production line each on M/s. ECO PROGETTI, of Italy and M/s. P Energy S.R.L of Italy for the 38 MW Solar Photo Voltaic Module project.
Bhagyanagar India Ltd has informed BSE that the Company, through its subsidiary M/s. Metropolitan Ventures India Ltd, has purchased 25 acres of land near the new Hyderabad International Airport.
Further, as reported earlier the Company has acquired 50 acres of land in a Multi-product SEZ, at Sricity near Chennai, which has now received formal approval from the Central Government.
The Company has also commenced work on the hardware park and residential projects near Hyderabad.
Bhagyanagar Metals Ltd has informed that the Company has completed acquisition of 25 acres of land at Gadchibowli, Hyderabad through its 100% owned subsidiaries M/s Bhagyanagar Properties Ltd and M/s Scientia Infocom India Ltd.
Gadchibowli is the main IT park location where prime companies have their Campus.
Bhagyanagar India Ltd has informed that the Company has finalized plans to set up an IT park at Hyderabad with a total outlay of about Rs 120 Crores and with a built up area of 800,000 sft in 6 acres of plot, out of 12 acres. The Company has sold the balance 6 acres of land to M/s. Himadri Enterprises Pvt Ltd, Mumbai. The proceeds of this sale will be used for constructing the IT Pork, which would include a shopping center and Entertainment Complex.
And recently company try to get Infra Projects also.
Good Dividend Paying Company; Equity Just 14 Crores; Promoters Holding 59.75%.
Good Land Bank in Hyderabad, Chennai .
Good land bank in the heart of Hyderabad at uppal which itself is as asset for the company. with a valuation of 150rs/share holder.
Buy at current price trading at 25/- with target of 45/- and 55/- within short time.
TWO PENNY STOCKS
Cals Refineries Ltd&Sanraa Media Ltd:-Multibaggers or multibeggers?
CALS REFINERIES: GROUP -B COMPANY BSE SCRIP CODE::526652
CMP:0.78p
52 WEEKS HIGH=6
52WEEKS LW=1
Story:Promoters acquired listed NBFC and planned to set up crude refinery.Equity bloated to 794 crs.through GDR issue. Company is intending to import IInd hand plant from Germany. To finance the same, it wanted to raise USD 500 mn from overseas.However, due to bad market conditions, company may not succeed.Hence, implementation of project is uncertain. However,some strong operators are trying to take the share price up and scrip is being recommended by everyone in the share market to everyone else in the share market. Fundamentals of the company are nil. Promoters make grandios plans although company may have no substance.Same promoters acquired Hitkari Fibres and renamed it as SRM Energy. Here, promoters are dreaming to set up 4000 MW Power Plant. It will be a miracle with zero financials can implement billion dollar projects. It can quote at a mere 50 paisa but still attracts a several hundered crores marketcap.I can run a nomenclature of my buddies who loves to trade in these stock.They opt for Cals Refineries at below 40-50 paisa to sell the same at nearly 1re,i.e,a gain of over 100%.You people may just do the same and rake the moolah too but as I have mentioned chances are the bet getting dumped resulting loss of entire money.Cals do have humongous aggressive expansion plans but I have got decent doubt regarding the projects materialization.Often in newspapers and local channels it comes with influencing ads to lure investors but the policy offlate has done little for them.So forget outlook or fundamentals,If you have to trade do trade else so many better high growth oriented scrips are there to pocket up.2)
Sanraa Media Ltdcode: BSE SCRIP CODE::531312
cmp:75paisa(.75)
52 WEEKS HIGH=4
52 WEEKS LOW =1
Story:Another wealth destroyer with its price nosediving to 75 paisa from a high of 93rs made in may last year.No fundamentals,prospects to talk about but again chances of it tripling or hitting 1re or more cant be ruled out.Being a fineprint sucker even if these companies comes with bumper number I get goose bumps.Often the numbers are inflated or cooked up.You would find great results for consecutive 3 quarters and the last quarter comes with huge losses thereby cancelling each other.Here the case is like hardly 75paisa to loose but gain can be huge.Operators may help you too if the sentiment changes for good as simple gullible retail guys would have the first titillation of penny stocks.Operators are quick to smell these stuff and who knows maybe accumulation has already taken place.To conclude don't invest much,forget the money once you put in as a loosing bet.Be quick to pounce on an exit opportunity.If you get stuck be rest assured the money has left you forever.
Wednesday, June 17, 2009
MARUTI SECURITIES B GR. COMPANY
Company History - Maruti Securities
MARUTI SECURITIES LIMITED was incorporated as a Public Limited Company
on 9th August, 1994 with Registrar of Companies, Andhra Pradesh at
Hyderabad and Certificate of Commencement of Business was received on
22nd August, 1994. The Company has been promoted by Smt.K.Chitra and
Shri. K. Varadarajan.
PRESENT BUSINESS
The Company is presently engaged in the business of Investment
Banking, mainly in Primary & Secondary markets.
2001 - The Company has signed an agreement with CDSL and NSDL for
dematerialisation.
CMP =6.70 0.03 (0.45%)
BSE : Jun 17, 17:30
Open=6.40
Vol=1,808
High=7.00
52 Wk=13.05
Low=6.40
52 Wk= 6.38
Prev. Close =6.67
See Technical Chart
NSE : Not listed
MARUTI SECURITIES LIMITED was incorporated as a Public Limited Company
on 9th August, 1994 with Registrar of Companies, Andhra Pradesh at
Hyderabad and Certificate of Commencement of Business was received on
22nd August, 1994. The Company has been promoted by Smt.K.Chitra and
Shri. K. Varadarajan.
PRESENT BUSINESS
The Company is presently engaged in the business of Investment
Banking, mainly in Primary & Secondary markets.
2001 - The Company has signed an agreement with CDSL and NSDL for
dematerialisation.
CMP =6.70 0.03 (0.45%)
BSE : Jun 17, 17:30
Open=6.40
Vol=1,808
High=7.00
52 Wk=13.05
Low=6.40
52 Wk= 6.38
Prev. Close =6.67
See Technical Chart
NSE : Not listed
RITESH INTERNATIONAL B GROUP
RITESH INTERNATIONAL
BSE: 519097 NSE: N.A ISIN: INE534D01014 Edible Oils & Solvent Extraction
CMP: 4.21 -0.22 (-4.97%)
BSE : Jun 17, 15:42
Open=4.21
Vol=5,167
High=4.25
52 Wk=14.30
Low=4.21
52 Wk =3.34
Prev. Close =4.43
NSE : Not listed
The company was incorporated in 1982. The company was orginally called as SUKCHAIN OIL INDUSTRIES. It was later changed to RITESH INTERNATIONAL LTD. The company is managed by Mr Rajiv Arora as the Managing director. It is involved in solvent extraction and Production of fatty acids.
2003
-The members have approved delisting of Equity shares from Ludhiana,
Calcutta, and Delhi Stock Exchanges.
BSE: 519097 NSE: N.A ISIN: INE534D01014 Edible Oils & Solvent Extraction
CMP: 4.21 -0.22 (-4.97%)
BSE : Jun 17, 15:42
Open=4.21
Vol=5,167
High=4.25
52 Wk=14.30
Low=4.21
52 Wk =3.34
Prev. Close =4.43
NSE : Not listed
The company was incorporated in 1982. The company was orginally called as SUKCHAIN OIL INDUSTRIES. It was later changed to RITESH INTERNATIONAL LTD. The company is managed by Mr Rajiv Arora as the Managing director. It is involved in solvent extraction and Production of fatty acids.
2003
-The members have approved delisting of Equity shares from Ludhiana,
Calcutta, and Delhi Stock Exchanges.
Tuesday, June 16, 2009
COMPENDIUM OF STOCKS
WITHIN FEW DAYS YOU WILL FIND DETAILS OF ALL THE A-GROUP STOCKS IN THIS BLOG ALONG WITH DETAILS ANALYSIS OF STOCKS AND LINKS OF THE COMPANIES!+ LONG TERM STOCKS RECOMMENDATIONS
SO KEEP VISITING THE BLOG!
SO KEEP VISITING THE BLOG!
SEBI TO REFORM PRIMARY MARKET
Even as the board of market regulator Securities and Exchange Board of India (Sebi) is slated to meet on Jun 18, It is learnt that a number of changes may be on anvil.
More power to Sebi
The Sebi board will be restructured and representatives of the Reserve Bank of India and the Ministry of Corporate Affairs may be dropped — the restructured board will also have a secretary, sources said.
The regulator has proposed to dispense with registration of sub-brokers, and would be vested with powers a Civil Court for inquiry.
Sebi’s power to attach bank account will be extended by three months, sources added.
As part of sweeping changes of power with which Sebi can now act, the regulator will free voting powers on shares acquired illegally, cancel illegally allotted securities and can debar a person from serving in the securities market.
The agenda on the June 18 meeting also seeks for powers for Sebi to pass cease-and-desist orders in case of takeover violations, get call records from telecom operators and to direct any person to disgorge unfair gains.
Changes in disclosure norms
Sebi has proposed a new set of ‘Issue of Capital and Disclosure Requirements' (ICDR) Regulations,. The new regulation, ICDR, would replace the Sebi (Disclosure and Investor Protection) Guidelines, 2000, sources said.
The ICDR, sources said, would have a framework for equity issues and convertible instruments and will have modified provisions of existing DIP guidelines and would also contain the relevant recommendations from the Malegam Committee report.
The initial DIP guidelines were issued in 1992 and were updated in 2000 and comprise of 17 chapters, 30 schedules and 370 pages. The proposed ICDR regulations are based on DIP guidelines as of May 31, 2009, sources said, adding that Sebi was also looking to regulate capital issues via Section 11A (1) of the Sebi Act rather than DIP
Fee for intermediaries to be cut
Sources say Sebi has recommended a fee cut for intermediaries and that it may cut fees for FII registration, FII sub-account registration, sale and purchase of securities and debt securities, derivative segment trading and registration for foreign venture capitalists by as much as half.
Sebi has also proposed to review its primary market policy, sources say. As part of the recommendation, unlisted companies going public must list on one nationwide stock exchange. GDRs/ADRs held for over one year, the regulator has proposed, would be eligible for 'Offer for Sale'.
Other changes
Sebi has also proposed changes to securities laws and many acts including The Sebi Act, 1992, The SEC (Registration) Act, 1956, and The Depositories Act, 1996 will be amended. The retirement age for members of the Securities Appellate Tribunal (SAT) would be hiked to 62 years from the existing 62 years — the SAT may also be renamed Financial Services Appellate Tribunal
Here are the other changes that Sebi has recommended:
- Rationalisation of disclosure norms for rights issue
- ‘Summary of industry and business’, ‘Promise vs performance’ disclosures to be dropped
- Major disclosures retained with modifications including funds deployment
- Risk factors and outstanding litigations disclosures retained
- Reduction in rights issue process time, protection of existing investors priority
- Management discussion, analysis post last balance sheet may not be required
More power to Sebi
The Sebi board will be restructured and representatives of the Reserve Bank of India and the Ministry of Corporate Affairs may be dropped — the restructured board will also have a secretary, sources said.
The regulator has proposed to dispense with registration of sub-brokers, and would be vested with powers a Civil Court for inquiry.
Sebi’s power to attach bank account will be extended by three months, sources added.
As part of sweeping changes of power with which Sebi can now act, the regulator will free voting powers on shares acquired illegally, cancel illegally allotted securities and can debar a person from serving in the securities market.
The agenda on the June 18 meeting also seeks for powers for Sebi to pass cease-and-desist orders in case of takeover violations, get call records from telecom operators and to direct any person to disgorge unfair gains.
Changes in disclosure norms
Sebi has proposed a new set of ‘Issue of Capital and Disclosure Requirements' (ICDR) Regulations,. The new regulation, ICDR, would replace the Sebi (Disclosure and Investor Protection) Guidelines, 2000, sources said.
The ICDR, sources said, would have a framework for equity issues and convertible instruments and will have modified provisions of existing DIP guidelines and would also contain the relevant recommendations from the Malegam Committee report.
The initial DIP guidelines were issued in 1992 and were updated in 2000 and comprise of 17 chapters, 30 schedules and 370 pages. The proposed ICDR regulations are based on DIP guidelines as of May 31, 2009, sources said, adding that Sebi was also looking to regulate capital issues via Section 11A (1) of the Sebi Act rather than DIP
Fee for intermediaries to be cut
Sources say Sebi has recommended a fee cut for intermediaries and that it may cut fees for FII registration, FII sub-account registration, sale and purchase of securities and debt securities, derivative segment trading and registration for foreign venture capitalists by as much as half.
Sebi has also proposed to review its primary market policy, sources say. As part of the recommendation, unlisted companies going public must list on one nationwide stock exchange. GDRs/ADRs held for over one year, the regulator has proposed, would be eligible for 'Offer for Sale'.
Other changes
Sebi has also proposed changes to securities laws and many acts including The Sebi Act, 1992, The SEC (Registration) Act, 1956, and The Depositories Act, 1996 will be amended. The retirement age for members of the Securities Appellate Tribunal (SAT) would be hiked to 62 years from the existing 62 years — the SAT may also be renamed Financial Services Appellate Tribunal
Here are the other changes that Sebi has recommended:
- Rationalisation of disclosure norms for rights issue
- ‘Summary of industry and business’, ‘Promise vs performance’ disclosures to be dropped
- Major disclosures retained with modifications including funds deployment
- Risk factors and outstanding litigations disclosures retained
- Reduction in rights issue process time, protection of existing investors priority
- Management discussion, analysis post last balance sheet may not be required
WATCH OUT TWO GOOD STOCKS
Gateway Distriparks BUY on DECLINES !
GATEWAY DISTRIPARKS (BUY) BETWEEN 80-90 (SHORT TERM Target1)115 (SHORT TERM Target2) 128 & 145 (Sl) 65
Gateway Distriparks (GDL) is an integrated port-based logistics player with a presence in the rail container and cold chain distribution businesses.
GDL's presence at strategic locations and its ongoing expansion plans may make it a key beneficiary of the growing container traffic in India going ahead.
At Rs 88, the stock is trading at 8.9x FY2011E EPS of Rs 9.9 and 5.4x EV/EBIDTA of FY2011E. The stock is trading at attractive valuations on the back of our estimated Earnings CAGR of 15% over FY2009-11E.
COSMO FILMS CMP Rs 95/-
Cosmo Films Ltd. (CFL), a global leader and manufacturer of Bi-axially Oriented Polypropylene Films (BOPP), was established in 1981. The company is promoted by its visionary leader, Mr. Ashok Jaipuria, and is a pioneer of BOPP manufacturing in India. Since inception, CFL has maintained its market leadership in both the domestic and export market. In 2008, it was awarded ‘Top exporter award’ by Dun & Bradstreet under the large Indian exporters' category. By March 2009, its total capacity was 96,000 TPA of BOPP films. The company has also set up a captive power plant of 8 MW to ensure uninterrupted power supply.
CFL’s equity is Rs.19.44 cr. on its huge reserves of around Rs.249.20 cr., which is 12.41 times the equity. The promoters holds 43.65% stake in the company, institutions hold 2.08%, non-corporate promoters hold 7.81% while the investing public hold 28.86%.
CFL has reported very good results for FY09 as net sales zoomed to Rs.667.74 cr. from Rs.585.16 cr. in FY08 while net profit nearly doubled to Rs.87.46 cr. from Rs.44.50 cr. in FY08. After declaring marvellous results, the company has paid 50% dividend. Its share price fell from Rs.113 to Rs.55 in one year and is currently traded at Rs.95 at a P/E ratio of just 3.3.
CFL has informed the BSE regarding a Press Release dated 12 June 2009, titled "Cosmo Films completes acquisition of US based GBC Commercial Print Finishing for US $17.1 million".
At current price, the stock is available dirt cheap. From this level, the stock looks safe for investors. Buy with a stop loss of Rs.86. On the upper side, it will go up to Rs.113-122 level in coming days. This is good stock for dividend yield and the market is looking highly overbought then also this stock is looking safe.
GATEWAY DISTRIPARKS (BUY) BETWEEN 80-90 (SHORT TERM Target1)115 (SHORT TERM Target2) 128 & 145 (Sl) 65
Gateway Distriparks (GDL) is an integrated port-based logistics player with a presence in the rail container and cold chain distribution businesses.
GDL's presence at strategic locations and its ongoing expansion plans may make it a key beneficiary of the growing container traffic in India going ahead.
At Rs 88, the stock is trading at 8.9x FY2011E EPS of Rs 9.9 and 5.4x EV/EBIDTA of FY2011E. The stock is trading at attractive valuations on the back of our estimated Earnings CAGR of 15% over FY2009-11E.
COSMO FILMS CMP Rs 95/-
Cosmo Films Ltd. (CFL), a global leader and manufacturer of Bi-axially Oriented Polypropylene Films (BOPP), was established in 1981. The company is promoted by its visionary leader, Mr. Ashok Jaipuria, and is a pioneer of BOPP manufacturing in India. Since inception, CFL has maintained its market leadership in both the domestic and export market. In 2008, it was awarded ‘Top exporter award’ by Dun & Bradstreet under the large Indian exporters' category. By March 2009, its total capacity was 96,000 TPA of BOPP films. The company has also set up a captive power plant of 8 MW to ensure uninterrupted power supply.
CFL’s equity is Rs.19.44 cr. on its huge reserves of around Rs.249.20 cr., which is 12.41 times the equity. The promoters holds 43.65% stake in the company, institutions hold 2.08%, non-corporate promoters hold 7.81% while the investing public hold 28.86%.
CFL has reported very good results for FY09 as net sales zoomed to Rs.667.74 cr. from Rs.585.16 cr. in FY08 while net profit nearly doubled to Rs.87.46 cr. from Rs.44.50 cr. in FY08. After declaring marvellous results, the company has paid 50% dividend. Its share price fell from Rs.113 to Rs.55 in one year and is currently traded at Rs.95 at a P/E ratio of just 3.3.
CFL has informed the BSE regarding a Press Release dated 12 June 2009, titled "Cosmo Films completes acquisition of US based GBC Commercial Print Finishing for US $17.1 million".
At current price, the stock is available dirt cheap. From this level, the stock looks safe for investors. Buy with a stop loss of Rs.86. On the upper side, it will go up to Rs.113-122 level in coming days. This is good stock for dividend yield and the market is looking highly overbought then also this stock is looking safe.
LIVE BUSINESS NEWS http://http://www.in.com/videos/watchvideo-cnbc-tv18-1626370.html
WATCH LIVE STREAMING MARKET NEWS HERE!
WATCH LIVE STREAMING MARKET NEWS RIGHT HERE
http://www.in.com/videos/watchvideo-cnbc-tv18-1626370.html
Sunday, June 14, 2009
HISTORY OF COMMODITY MARKET
Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.
This article focuses on the history and current debates regarding global commodity markets. It covers physical product (food, metals, electricity) markets but not the ways that services, including those of governments, nor investment, nor debt, can be seen as a commodity. Articles on reinsurance markets, stock markets, bond markets and currency markets cover those concerns separately and in more depth. One focus of this article is the relationship between simple commodity money and the more complex instruments offered in the commodity markets.
HistoryThis article focuses on the history and current debates regarding global commodity markets. It covers physical product (food, metals, electricity) markets but not the ways that services, including those of governments, nor investment, nor debt, can be seen as a commodity. Articles on reinsurance markets, stock markets, bond markets and currency markets cover those concerns separately and in more depth. One focus of this article is the relationship between simple commodity money and the more complex instruments offered in the commodity markets.
The modern commodity markets have their roots in the trading of agricultural products. While wheat and corn, cattle and pigs, were widely traded using standard instruments in the 19th century in the United States, other basic foodstuffs such as soybeans were only added quite recently in most markets. For a commodity market to be established, there must be very broad consensus on the variations in the product that make it acceptable for one purpose or another.
The economic impact of the development of commodity markets is hard to overestimate. Through the 19th century "the exchanges became effective spokesmen for, and innovators of, improvements in transportation, warehousing, and financing, which paved the way to expanded interstate and international trade."
Early history of commodity markets
Historically, dating from ancient Sumerian use of sheep or goats, or other peoples using pigs, rare seashells, or other items as commodity money, people have sought ways to standardize and trade contracts in the delivery of such items, to render trade itself more smooth and predictable.
Commodity money and commodity markets in a crude early form are believed to have originated in Sumer where small baked clay tokens in the shape of sheep or goats were used in trade. Sealed in clay vessels with a certain number of such tokens, with that number written on the outside, they represented a promise to deliver that number. This made them a form of commodity money - more than an "I.O.U." but less than a guarantee by a nation-state or bank. However, they were also known to contain promises of time and date of delivery - this made them like a modern futures contract. Regardless of the details, it was only possible to verify the number of tokens inside by shaking the vessel or by breaking it, at which point the number or terms written on the outside became subject to doubt. Eventually the tokens disappeared, but the contracts remained on flat tablets. This represented the first system of commodity accounting.
However, the Commodity status of living things is always subject to doubt - it was hard to validate the health or existence of sheep or goats. Excuses for non-delivery were not unknown, and there are recovered Sumerian letters that complain of sickly goats, sheep that had already been fleeced, etc.
If a seller's reputation was good, individual "backers" or "bankers" could decide to take the risk of "clearing" a trade. The observation that trust is always required between market participants later led to credit money. But until relatively modern times, communication and credit were primitive.
Classical civilizations built complex global markets trading gold or silver for spices, cloth, wood and weapons, most of which had standards of quality and timeliness. Considering the many hazards of climate, piracy, theft and abuse of military fiat by rulers of kingdoms along the trade routes, it was a major focus of these civilizations to keep markets open and trading in these scarce commodities. Reputation and clearing became central concerns, and the states which could handle them most effectively became very powerful empires, trusted by many peoples to manage and mediate trade and commerce.
Historically, dating from ancient Sumerian use of sheep or goats, or other peoples using pigs, rare seashells, or other items as commodity money, people have sought ways to standardize and trade contracts in the delivery of such items, to render trade itself more smooth and predictable.
Commodity money and commodity markets in a crude early form are believed to have originated in Sumer where small baked clay tokens in the shape of sheep or goats were used in trade. Sealed in clay vessels with a certain number of such tokens, with that number written on the outside, they represented a promise to deliver that number. This made them a form of commodity money - more than an "I.O.U." but less than a guarantee by a nation-state or bank. However, they were also known to contain promises of time and date of delivery - this made them like a modern futures contract. Regardless of the details, it was only possible to verify the number of tokens inside by shaking the vessel or by breaking it, at which point the number or terms written on the outside became subject to doubt. Eventually the tokens disappeared, but the contracts remained on flat tablets. This represented the first system of commodity accounting.
However, the Commodity status of living things is always subject to doubt - it was hard to validate the health or existence of sheep or goats. Excuses for non-delivery were not unknown, and there are recovered Sumerian letters that complain of sickly goats, sheep that had already been fleeced, etc.
If a seller's reputation was good, individual "backers" or "bankers" could decide to take the risk of "clearing" a trade. The observation that trust is always required between market participants later led to credit money. But until relatively modern times, communication and credit were primitive.
Classical civilizations built complex global markets trading gold or silver for spices, cloth, wood and weapons, most of which had standards of quality and timeliness. Considering the many hazards of climate, piracy, theft and abuse of military fiat by rulers of kingdoms along the trade routes, it was a major focus of these civilizations to keep markets open and trading in these scarce commodities. Reputation and clearing became central concerns, and the states which could handle them most effectively became very powerful empires, trusted by many peoples to manage and mediate trade and commerce.
10 BIGGEST FALL IN INDIAN MARKET
Here are the 10 biggest falls in the Indian stock market history:
Jan 21, 2008: The Sensex saw its highest ever loss of 1,408 points at the end of the session on Monday. The Sensex recovered to close at 17,605.40 after it tumbled to the day's low of 16,963.96, on high volatility as investors panicked following weak global cues amid fears of the US recession.
Jan 22, 2008: The Sensex saw its biggest intra-day fall on Tuesday when it hit a low of 15,332, down 2,273 points. However, it recovered losses and closed at a loss of 875 points at 16,730. The Nifty closed at 4,899 at a loss of 310 points. Trading was suspended for one hour at the Bombay Stock Exchange after the benchmark Sensex crashed to a low of 15,576.30 within minutes of opening, crossing the circuit limit of 10 per cent.
May 18, 2006: The Sensex registered a fall of 826 points (6.76 per cent) to close at 11,391, following heavy selling by FIIs, retail investors and a weakness in global markets. The Nifty crashed by 496.50 points (8.70%) points to close at 5,208.80 points.December 17, 2007: A heavy bout of selling in the late noon deals saw the index plunge to a low of 19,177 - down 856 points from the day's open. The Sensex finally ended with a huge loss of 769 points (3.8%) at 19,261. The NSE Nifty ended at 5,777, down 271 points.
October 18, 2007: Profit-taking in noon trades saw the index pare gains and slip into negative zone. The intensity of selling increased towards the closing bell, and the index tumbled all the way to a low of 17,771 - down 1,428 points from the day's high. The Sensex finally ended with a hefty loss of 717 points (3.8%) at 17,998. The Nifty lost 208 points to close at 5,351.
January 18, 2008: Unabated selling in the last one hour of trade saw the index tumble to a low of 18,930 - down 786 points from the day's high. The Sensex finally ended with a hefty loss of 687 points (3.5%) at 19,014. The index thus shed 8.7% (1,813 points) during the week. The NSE Nifty plunged 3.5% (208 points) to 5,705.
November 21, 2007: Mirroring weakness in other Asian markets, the Sensex saw relentless selling. The index tumbled to a low of 18,515 - down 766 points from the previous close. The Sensex finally ended with a loss of 678 points at 18,603. The Nifty lost 220 points to close at 5,561.August 16, 2007: The Sensex, after languishing over 500 points lower for most of the trading sesion, slipped again towards the close to a low of 14,345. The index finally ended with a hefty loss of 643 points at 14,358.
April 02, 2007: The Sensex opened with a huge negative gap of 260 points at 12,812 following the Reserve Bank of India [Get Quote] decision to hike the cash reserve ratio and repo rate. Unabated selling, mainly in auto and banking stocks, saw the index drift to lower levels as the day progressed. The index tumbled to a low of 12,426 before finally settling with a hefty loss of 617 points (4.7%) at 12,455. August 01, 2007: The Sensex opened with a negative gap of 207 points at 15,344 amid weak trends in the global market and slipped deeper into the red. Unabated selling across-the-board saw the index tumble to a low of 14,911. The Sensex finally ended with a hefty loss of 615 points at 14,936. The NSE Nifty ended at 4,346, down 183 points. This is the third biggest loss in absolute terms for the index.
Jan 21, 2008: The Sensex saw its highest ever loss of 1,408 points at the end of the session on Monday. The Sensex recovered to close at 17,605.40 after it tumbled to the day's low of 16,963.96, on high volatility as investors panicked following weak global cues amid fears of the US recession.
Jan 22, 2008: The Sensex saw its biggest intra-day fall on Tuesday when it hit a low of 15,332, down 2,273 points. However, it recovered losses and closed at a loss of 875 points at 16,730. The Nifty closed at 4,899 at a loss of 310 points. Trading was suspended for one hour at the Bombay Stock Exchange after the benchmark Sensex crashed to a low of 15,576.30 within minutes of opening, crossing the circuit limit of 10 per cent.
May 18, 2006: The Sensex registered a fall of 826 points (6.76 per cent) to close at 11,391, following heavy selling by FIIs, retail investors and a weakness in global markets. The Nifty crashed by 496.50 points (8.70%) points to close at 5,208.80 points.December 17, 2007: A heavy bout of selling in the late noon deals saw the index plunge to a low of 19,177 - down 856 points from the day's open. The Sensex finally ended with a huge loss of 769 points (3.8%) at 19,261. The NSE Nifty ended at 5,777, down 271 points.
October 18, 2007: Profit-taking in noon trades saw the index pare gains and slip into negative zone. The intensity of selling increased towards the closing bell, and the index tumbled all the way to a low of 17,771 - down 1,428 points from the day's high. The Sensex finally ended with a hefty loss of 717 points (3.8%) at 17,998. The Nifty lost 208 points to close at 5,351.
January 18, 2008: Unabated selling in the last one hour of trade saw the index tumble to a low of 18,930 - down 786 points from the day's high. The Sensex finally ended with a hefty loss of 687 points (3.5%) at 19,014. The index thus shed 8.7% (1,813 points) during the week. The NSE Nifty plunged 3.5% (208 points) to 5,705.
November 21, 2007: Mirroring weakness in other Asian markets, the Sensex saw relentless selling. The index tumbled to a low of 18,515 - down 766 points from the previous close. The Sensex finally ended with a loss of 678 points at 18,603. The Nifty lost 220 points to close at 5,561.August 16, 2007: The Sensex, after languishing over 500 points lower for most of the trading sesion, slipped again towards the close to a low of 14,345. The index finally ended with a hefty loss of 643 points at 14,358.
April 02, 2007: The Sensex opened with a huge negative gap of 260 points at 12,812 following the Reserve Bank of India [Get Quote] decision to hike the cash reserve ratio and repo rate. Unabated selling, mainly in auto and banking stocks, saw the index drift to lower levels as the day progressed. The index tumbled to a low of 12,426 before finally settling with a hefty loss of 617 points (4.7%) at 12,455. August 01, 2007: The Sensex opened with a negative gap of 207 points at 15,344 amid weak trends in the global market and slipped deeper into the red. Unabated selling across-the-board saw the index tumble to a low of 14,911. The Sensex finally ended with a hefty loss of 615 points at 14,936. The NSE Nifty ended at 4,346, down 183 points. This is the third biggest loss in absolute terms for the index.
KNOW: BOMBAY STOCK EXCHANGE
The Stock Exchange, Mumbai; popularly called The Bombay/Mumbai Stock Exchange, or BSE has the greatest number of listed companies in the world, with 4700 listed as of August 2007.It is located at Dalal Street, Mumbai, India. On 31 December 2007, the equity market capitalization of the companies listed on the BSE was US$ 1.79 trillion, making it the largest stock exchange in South Asia and the 12th largest in the world.
With over 4700 Indian companies list on the stock exchange, and it has a significant trading volume. The BSE SENSEX (SENSitive indEX), also called the "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for most of the trading in shares in India.Singapore Exchange (SGX) made a strategic investment in Bombay Stock Exchange, acquiring 5% of its shares for US$42.7 million. It is consistent with the strategy of building an Asian Gateway for securities and derivatives. BSE is also considering to take part of the capitalisation of the rising ascension of its partner, Singapore Exchange, which is becoming a leading financial hub in Asia-Pacific.
With over 4700 Indian companies list on the stock exchange, and it has a significant trading volume. The BSE SENSEX (SENSitive indEX), also called the "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for most of the trading in shares in India.Singapore Exchange (SGX) made a strategic investment in Bombay Stock Exchange, acquiring 5% of its shares for US$42.7 million. It is consistent with the strategy of building an Asian Gateway for securities and derivatives. BSE is also considering to take part of the capitalisation of the rising ascension of its partner, Singapore Exchange, which is becoming a leading financial hub in Asia-Pacific.
Mumbai Stock Exchange history
Following is the timeline on the rise and rise of the Sensex through Indian stock market history.
1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay.
1860-1865 Cotton price bubble as a result of the American Civil War
1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks and coal
Following is the timeline on the rise and rise of the Sensex through Indian stock market history.
1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay.
1860-1865 Cotton price bubble as a result of the American Civil War
1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks and coal
1900s
1978-79 Base year of Sensex, defined to be 100.
1986 Sensex first compiled using a market Capitalization-Weighted methodology for 30 component stocks representing well-established companies across key sectors.
Since 1990
1000, July 25, 1990 On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon season and excellent corporate results.
July 1991 Rupee devalued by 18-19 %
2000, January 15, 1992 On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then prime minister P.V.Narasimha rao.
3000, February 29, 1992 On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister, Dr Manmohan Singh.
4000, March 30, 1992 On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.
5000, October 8, 1999 On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election.
6000, February 11, 2000 On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006.
6151, Feb 14, 2000 Tops. Index declines until Sept 2001 and loses half the value. Coincides with dot-com bubble burst.
2595, Sept 21, 2001 Bottoms.
7000, June 20, 2005 On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL, Reliance Energy, Reliance Capital, and IPCL made huge gains. This helped the Sensex crossed 7,000 points for the first time.
8000, September 8, 2005 On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.
9000, November 28, 2005 The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.
10,000, February 6, 2006 The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006.
11,000, March 21, 2006 The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.
12,000, April 20, 2006 The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of 12,040 points for the first time.
13,000, October 30, 2006 The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.
14,000, December 5, 2006 The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.
15,000, July 6, 2007 The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.
16,000, September 19, 2007 The Sensex scaled yet another milestone during early morning trade on September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high at 4659, up 113 points.
The Sensex finally ended with a gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732.
17,000, September 26, 2007 The Sensex scaled yet another height during early morning trade on September 26, 2007. Within minutes after trading began, the Sensex crossed the 17,000-mark . Some profit taking towards the end, saw the index slip into red to 16,887 - down 187 points from the day's high. The Sensex ended with a gain of 22 points at 16,921.
18,000, October 09, 2007 The BSE Sensex crossed the 18,000-mark on October 09, 2007. It took just 8 days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-time intra-day high of 18,327. It finally gained 789 points to close at an all-time high of 18,280. The market set several new records including the biggest single day gain of 789 points at close, as well as the largest intra-day gains of 993 points in absolute term backed by frenzied buying after the news of the UPA and Left meeting on October 22 put an end to the worries of an impending election.
19,000, October 15, 2007 The Sensex crossed the 19,000-mark backed by revival of funds-based buying in blue chip stocks in metal, capital goods and refinery sectors. The index gained the last 1,000 points in just four trading days. The index touched a fresh all-time intra-day high of 19,096, and finally ended with a smart gain of 640 points at 19,059.The Nifty gained 242 points to close at 5,670.
20,000, October 29, 2007 The Sensex crossed the 20,000 mark on the back of aggressive buying by funds ahead of the US Federal Reserve meeting. The index took only 10 trading days to gain 1,000 points after the index crossed the 19,000-mark on October 15. The major drivers of today's rally were index heavyweights Larsen and Toubro, Reliance Industries, ICICI Bank, HDFC Bank and SBI among others. The 30-share index spurted in the last five minutes of trade to fly-past the crucial level and scaled a new intra-day peak at 20,024.87 points before ending at its fresh closing high of 19,977.67, a gain of 734.50 points. The NSE Nifty rose to a record high 5,922.50 points before ending at 5,905.90, showing a hefty gain of 203.60 points.
21,000, January 8, 2008 The sensex peaks. It crossed the 21,000 mark in intra-day trading after 49 trading sessions. This was backed by high market confidence of increased FII investment and strong corporate results for the third quarter. However, it later fell back due to profit booking.
15,200, June 13, 2008 The sensex closed below 15,200 mark, Indian market suffer with major downfall from January 21,2008
14,220, June 25, 2008 The sensex touched an intra day low of 13,731 during the early trades, then pulled back and ended up at 14,220 amidst a negative sentiment generated on the Reserve Bank of India hiking CRR by 50 bps. FII outflow continued in this week.
12,822, July 2, 2008 The sensex hit an intra day low of 12,822.70 on July 2nd, 2008. This is the lowest that it has ever been in the past year. Six months ago, on January 10th, 2008, the market had hit an all time high of 21206.70. This is a bad time for the Indian markets, although Reliance and Infosys continue to lead the way with mostly positive results. Bloomberg lists them as the top two gainers for the Sensex, closely followed by ICICI Bank and ITC Ltd.
11801.70, Oct 6, 2008 The sensex closed at 11801.70 hitting the lowest in the past 2 years.
10527, Oct 10, 2008 The Sensex today closed at 10527,800.51 points down from the previous day having seen an intraday fall of as large as 1063 points. Thus,this week turned out to be the week with largest percentage fall in the Sensex.
14284.21, May 18, 2009 After the result of 15th indian general election Sensex gained 2110.79 points form the previous close of 12173.42 these creates a new histroy in Indian Market.In the Opening Trade itself sensex gain 15% from the previous day close this leads to the suspension of 2 hours trade.After 2 hours sensex again surged this leads to the suspension of full day trading.
1978-79 Base year of Sensex, defined to be 100.
1986 Sensex first compiled using a market Capitalization-Weighted methodology for 30 component stocks representing well-established companies across key sectors.
Since 1990
1000, July 25, 1990 On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon season and excellent corporate results.
July 1991 Rupee devalued by 18-19 %
2000, January 15, 1992 On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then prime minister P.V.Narasimha rao.
3000, February 29, 1992 On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister, Dr Manmohan Singh.
4000, March 30, 1992 On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.
5000, October 8, 1999 On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election.
6000, February 11, 2000 On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006.
6151, Feb 14, 2000 Tops. Index declines until Sept 2001 and loses half the value. Coincides with dot-com bubble burst.
2595, Sept 21, 2001 Bottoms.
7000, June 20, 2005 On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL, Reliance Energy, Reliance Capital, and IPCL made huge gains. This helped the Sensex crossed 7,000 points for the first time.
8000, September 8, 2005 On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.
9000, November 28, 2005 The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.
10,000, February 6, 2006 The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006.
11,000, March 21, 2006 The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.
12,000, April 20, 2006 The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of 12,040 points for the first time.
13,000, October 30, 2006 The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.
14,000, December 5, 2006 The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.
15,000, July 6, 2007 The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.
16,000, September 19, 2007 The Sensex scaled yet another milestone during early morning trade on September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high at 4659, up 113 points.
The Sensex finally ended with a gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732.
17,000, September 26, 2007 The Sensex scaled yet another height during early morning trade on September 26, 2007. Within minutes after trading began, the Sensex crossed the 17,000-mark . Some profit taking towards the end, saw the index slip into red to 16,887 - down 187 points from the day's high. The Sensex ended with a gain of 22 points at 16,921.
18,000, October 09, 2007 The BSE Sensex crossed the 18,000-mark on October 09, 2007. It took just 8 days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-time intra-day high of 18,327. It finally gained 789 points to close at an all-time high of 18,280. The market set several new records including the biggest single day gain of 789 points at close, as well as the largest intra-day gains of 993 points in absolute term backed by frenzied buying after the news of the UPA and Left meeting on October 22 put an end to the worries of an impending election.
19,000, October 15, 2007 The Sensex crossed the 19,000-mark backed by revival of funds-based buying in blue chip stocks in metal, capital goods and refinery sectors. The index gained the last 1,000 points in just four trading days. The index touched a fresh all-time intra-day high of 19,096, and finally ended with a smart gain of 640 points at 19,059.The Nifty gained 242 points to close at 5,670.
20,000, October 29, 2007 The Sensex crossed the 20,000 mark on the back of aggressive buying by funds ahead of the US Federal Reserve meeting. The index took only 10 trading days to gain 1,000 points after the index crossed the 19,000-mark on October 15. The major drivers of today's rally were index heavyweights Larsen and Toubro, Reliance Industries, ICICI Bank, HDFC Bank and SBI among others. The 30-share index spurted in the last five minutes of trade to fly-past the crucial level and scaled a new intra-day peak at 20,024.87 points before ending at its fresh closing high of 19,977.67, a gain of 734.50 points. The NSE Nifty rose to a record high 5,922.50 points before ending at 5,905.90, showing a hefty gain of 203.60 points.
21,000, January 8, 2008 The sensex peaks. It crossed the 21,000 mark in intra-day trading after 49 trading sessions. This was backed by high market confidence of increased FII investment and strong corporate results for the third quarter. However, it later fell back due to profit booking.
15,200, June 13, 2008 The sensex closed below 15,200 mark, Indian market suffer with major downfall from January 21,2008
14,220, June 25, 2008 The sensex touched an intra day low of 13,731 during the early trades, then pulled back and ended up at 14,220 amidst a negative sentiment generated on the Reserve Bank of India hiking CRR by 50 bps. FII outflow continued in this week.
12,822, July 2, 2008 The sensex hit an intra day low of 12,822.70 on July 2nd, 2008. This is the lowest that it has ever been in the past year. Six months ago, on January 10th, 2008, the market had hit an all time high of 21206.70. This is a bad time for the Indian markets, although Reliance and Infosys continue to lead the way with mostly positive results. Bloomberg lists them as the top two gainers for the Sensex, closely followed by ICICI Bank and ITC Ltd.
11801.70, Oct 6, 2008 The sensex closed at 11801.70 hitting the lowest in the past 2 years.
10527, Oct 10, 2008 The Sensex today closed at 10527,800.51 points down from the previous day having seen an intraday fall of as large as 1063 points. Thus,this week turned out to be the week with largest percentage fall in the Sensex.
14284.21, May 18, 2009 After the result of 15th indian general election Sensex gained 2110.79 points form the previous close of 12173.42 these creates a new histroy in Indian Market.In the Opening Trade itself sensex gain 15% from the previous day close this leads to the suspension of 2 hours trade.After 2 hours sensex again surged this leads to the suspension of full day trading.
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