Infosys may see further downside: Bhamre

Infosys may see further downside from current levels, says Siddharth Bhamre of Angel Broking.

Bhamre told CNBC-TV18, "The data which we are observing in IT, Infosys on that day of its result we have seen huge formation of short positions and after that also fresh formation of short positions were visible but interestingly their rollovers are low so the stock maybe volatile for the next half an hour or so. But we do not see any respite."

He further added, "The stock has further downside from current levels. Even Wipro we have seen very low rollovers but this can be attributed to the change in contract after the de-merger from the other company and standalone IT company which it is right now so low rollovers over there. A lot of people are contemplating that TCS is expensive and one should sell TCS but we are thinking a bit unlike. We do not have that view, the reason being even if one is positive on market and one expects high beta to go up lot of funds do have IT exposure at all given point of time."

"At this point of time people would like to have exposure in TCS and not in Infosys and Wipro . So, even if there is some formation of short positions or some minor supports have been breached or it is looking fairly valuable at this point of time. I believe if you want an exposure in IT space then TCS is it. If one is not a fund house who you are trading into market irrespective of these exposures in this sector then I will completely avoid IT at this point in time hold on to shorts in Infosys but don't short TCS, that would be my advice."

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Sell IndusInd Bank, Titan Industries: SP Tulsian

SP Tulsian of sptulsian.com advises to sell IndusInd Bank and Titan Industries . According to him, both stocks are showing weak trend.

Tulsian told CNBC-TV18, "I am giving two sell calls, first on IndusInd Bank and second on Titan Industries. If you really take the call on IndusInd Bank the target of Rs 462 can be set with a stop loss of Rs 470 and for Titan Industries the target of Rs 258 with a stop loss of Rs 262 or Rs 262.50."

He further added, "Both the stocks are showing weak trend and because rollovers are seen quite low for both the stocks, so those who are not able to catch the target or stop loss one should look for a return of about 1 percent on the weakness side. Even if they enter into the current price, look for a gain of about 1 percent on the short side."

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Enter LIC Housing Fin around Rs 222-224: SP Tulsian

SP Tulsian of sptulsian.com advises to enter LIC Housing Fin around Rs 222-224.

Tulsian told CNBC-TV18, "I have not yet taken a look to the LIC Housing Finance numbers. I am keeping my positive stance, by and large my view on the housing finance companies is positive and that has been the case for HDFC and LIC Housing for maybe last about couple of weeks when HDFC used to rule below Rs 800 and LIC Housing Finance closer to Rs 220."

He further added, "Some caution is required ahead of the numbers and as you rightly said the NIM had been little subdued or not very encouraging. However, I will not be too worried from the results point of view, because good results can make the stocks to move to Rs 260 also. So you are already getting the stock at the factored subdued numbers from the company for Q4, but still it is better and if any disappointment brings down the share price back to about Rs 222-224 that should be used as a good entry point."

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Maruti Suzuki may correct to Rs 1450: SP Tulsian

Maruti Suzuki  may correct to Rs 1450 by next series, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "We expect that Hero Motocorp is going to disappoint on the margin as well as on the absolute bottom-line. I do not expect much disappointment or much poor numbers coming in from Maruti Suzuki and the kind of run up which we have seen in it that could only be the reason for profit booking."

He further added, "I am not keeping a positive stance on the share price, because if you really see the share has moved up more than Rs 300 in this series. So in spite of the satisfactory numbers likely to get posted by the Maruti, we may see the profit booking coming in into the stock, because this has to go with the expiry management, whenever the stock is into the grip for that series the stock remains in the positive stance. But yes, we will keep a cautious stance for Maruti Suzuki and I expect that stock can correct to about Rs 1,450 or so in the next series, so not taken a call on the results now."

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ICICI Bank may rally to Rs 1220: SP Tulsian

ICICI Bank may rally to Rs 1220, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "I do not think that there is any reason for the ICICI Bank to really disappoint and if the same kind of results are posted you can see some upside, because as such I am keeping my positive stance on all the banking stocks till Tuesday that is 2nd May, but yes after RBI policy and whole of the May series I am keeping a cautious stance on the banking stocks."

He further added, "Maybe one can look for a level of about Rs 1,220 or so on the ICICI Bank, maybe ahead of their numbers or couple of days after the bank announces the number, but thereafter I will keep my positive stance, but no concerns or no negative surprises expected from their results."

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Buy Zee Ent, Sun TV, TV18 on 3-4% correction: SP Tulsian

SP Tulsian of sptulsian.com advised buying Zee Entertainment , Sun TV and TV18 on a correction of about 3-4 percent.

Tulsian told CNBC-TV18, "I have been keeping positive stance on all the media stocks post this 31st March deadline which got digitization happening in about 38 cities. And that has been a very positive trigger for all media stocks, but honestly I have not seen that kind of reaction coming in which we have seen today."

He further added, "If you really take the case of Sun TV, yes that has shown some uptick in this last maybe a week or so. But still if you take a call on Zee Entertainment, Sun TV, TV18 they are really good stocks, but one has to really look on the dips. My view on the May series is a bit cautious, so I will look to enter into these stocks maybe on a correction of about 3-4 percent."

Disclaimer: Moneycontrol.com and Television Eighteen Network are both part of the Network18 Group.

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Jet Airways can move to Rs 680-685: SP Tulsian

According to SP Tulsian of sptulsian.com, if the open offer from Etihad triggers then Jet Airways will move to about Rs 680-685.

Tulsian told CNBC-TV18, "Jet Airways deal - only ambiguity in the whole deal is whether the open offer will trigger or not, because the market is taking a call that open offer will not trigger and that is keeping the share price subdued may be at a level of about Rs 635-640."

He further added, "If the open offer is likely to get triggered which in fact I am holding my view that yes it is likely to get triggered, because if Etihad is coming as a strategic investor with 24 percent stake with the rights on board seats and all that, it will be seen as an investor in control of that company. So, if the open offer triggers then the stock will move to about Rs 680-685 but if it confirms that open offer is not coming then probably you may see the share ruling in the same range of about Rs 635-650 because I don't think that much downside is seen from hereon. It is virtually ruling at its lower end of Rs 635 or so."

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New SC bench commences hearing Mittal, Ruia's plea

After recusal of two judges, a new Supreme Court bench on Thursday commenced hearing the pleas of Bharti Cellular Ltd CMD Sunil Bharti Mittal and Essar Group promoter Ravi Ruia in a case of alleged irregularities related to allocation of additional 2G spectrum in 2002.

Before Mittal could start his arguments, the CBI and an NGO on Thursday raised preliminary objections that the matter should not be heard by a newly constituted bench comprising Chief Justice Altamas Kabir and Justice S S Nijjar and instead be referred to the same bench on whose direction the probe was conducted leading them to be named as accused in the case.

However, the Chief Justice said the preliminary objections could be considered after hearing Mittal and others who have challenged the 2G trial court's order summoning them as accused.

"Until we know the facts, how can we understand the case. After we hear it, you can give us the preliminary objections," the bench said when CBI counsel KK Venugopal told the Court that the matter be left to the bench headed by Justice G S Singhvi who has been monitoring the probe into the 2G spectrum scam case.

Justice Nijjar was included in the bench as earlier on April 15 and April 18, Justice Vikramajit Sen and Justice AR Dave had recused themselves from hearing the matter without giving any reason.

Senior advocate Harish Salve, appearing for Mittal, opposed the objection of the CBI and said the chargesheet in the case of additional spectrum had been filed and with the filing of the police report (charge sheet), the monitoring had come to an end.

"Once the chargesheet has been filed, the question of monitoring does not arise as it leads to snapping of the link (of the case) with the court(monitoring the probe). The umbilical cord is gone," Salve said.

"Today, that bench is aware of the matter. My case is that this matter should stand or fall on its own merit. This matter has to be argued on its own merit," he said.

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Saradha chitfund: Sudipta Sen sent to 14-day police remand

Sudipta Sen, the main accused in the multi-crore Saradha chit fund scam, and his two other accomplices were today remanded in 14-day police custody by a court, even as police claimed that the company's director Debjani Mukherjee played a key role in decision-making.

Also read: Sebi orders Saradha Realty to close schemes, refund money

Sen, the group's chairman, along with Mukherjee and Arvind Singh Chouhan, who looked after the company's interests in Jharkhand, were produced before Additional Chief Judicial Magistrate A H M Rahman court in Bidhannagar. The three were charged under IPC sections 406 (criminal breach of trust), 420 (cheating) and 506 (criminal intimidation).

The court said that Sen could have a lawyer during interrogation if he desired and also asked the Bidhannagar police commisionerate to provide details of pending cases in their jurisdiction against the trio within a week. Meanwhile, Deputy Commissioner of Bidhannagar police Arnab Ghosh said that Mukherjee was a key decision-maker.

"We have come to know that Debjani had played a role in the decision-making process of Saradha," he said. Asked why the other Saradha directors were not arrested, Ghosh said all directors were not part of the decision-making process and cited the example of Hemant Pradhan who was actually a cook and had no idea that he had been made a director. Outside the court, placard-waving Youth Congress and BJP workers held demonstrations demanding that Sen be punished for duping thousands of investors and action against TMC MPs whose names figured in the scam.

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Nalco declares Rs 193.29 cr interim dividend for FY13

Aluminium major Nalco today declared an interim dividend of Rs 193.29 crore for 2012-13, which includes central government's share of Rs 156.68 crore.

The cheque for interim dividend was handed over to Union Mines Minister Dinsha J Patel by NALCO CMD Ansuman Das in New Delhi, a company release said. R H Khwaja, Secretary, Gauri Kumar, Special Secretary, Arun Kumar, Joint Secretary and other senior officials of the Ministry and NALCO were present on the occasion.

Also read: Is a key pillar of India's economy in jeopardy?

It may be noted that after the recent divestment of shares through OFS (Offer for Sale), the union government holds 81.06 percent shares of Nalco. The remaining shares are held by over 66,000 shareholders, including banks, financial institutions and individual shareholders. Since inception, NALCO has paid Rs 4,390.31 crore as dividend, including Rs 3,816.30 crore as share of Government of India, the release added.

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Cairn seeks govt nod to up Rajasthan block output by 20%

The Vedanata Group company Cairn India has sought government's approval to increase production from its prolific Rajasthan block by 20 percent to 200,000 barrels a day, from 175,000 barrels a day currently in mid March, reports CNBC-TV18's Nayantara Rai quoting sources.

Cairn India operates in Rajasthan block along with ONGC, where in it hold 70 percent and state-owned company owns 30 percent. The block consists three contiguous development areas DA1-which comprises Mangala, Aishwariya, Raageshwari and Saraswati, DA 2 consisting Bhagyam and Shakti and DA3 having the Kaameshwari West.
    
The company had been earlier under pressure as it was facing some technical difficulties at the Bhagyam field in Rajasthan. It has approval for about 40,000 barrels a day to produce from the field, but it has not been able to so far cross even 20,000 barrels.

Sources said that they have been able to overcome these technical difficulties and at the end of this fiscal they will hit their target of 40,000 barrels a day.

Also read: Cairn India strikes oil in Rajasthan

In middle of the year Cairn India may once gain seek approval from government for hiking production from Aishwarya field, from the current 10,000 barrels a day to 25,000 barrels a day.

These production hikes in individual fields will help the company to increase production from entire Rajasthan block by 20 percent, something which it has been talking about.  Anil Agarwal has been talking about having an integrated approach to develop Rajasthan.

In fact, Cairn India has been pitching to the Oil Ministry that its development plan should be taken up by the cabinet committee on investment (CCI), so that it can be fast tracked and approval process can be cut down to 18 months from 36 months.

In order to accelerate the approval process the company has even planned to invest Rs 5000 crore by 2016, which is much higher than CCI's threshold of Rs 1000 crore.

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Positive on Tata Global, Century Textiles, Sintex: Tulsian

SP Tulsian of sptulsian.com holds a cautious view on Bharti Airtel until there is any outcome on the 2G matter which will come up for hearing on Monday. In the midcap space he holds a positive view on Tata Global , Century Textiles , Sintex Industries and Dish TV .  

Below is the edited transcript of his interview to CNBC-TV18.

Q: What would you advocate in terms of further levels on the Nifty? Do you think that the strong run is going to possibly continue based on a lot of the macro data etc. that we got through the day?

A: One has to take a positive move on the Nifty in each trenches and Nifty at 5830 is the next level target. Traditionally, May series is always dull and weak. So probably the history establishes that May is likely to be little subdued because back-ended results are always dull and that may have its reflection.

Q: Bharti Airtel has gained 10 percent this week. What would the recommendation be on that stock now?

A: I have a cautious stance on this stock until there is any outcome on the 2G matter which will come up for hearing on Monday. 

But apart from that I don't think that there was any kind of fear really looming large on the counter. The global investors have all been giving this kind of confidence. So maybe the short covering seems to have come in coupled with the fresh buying at the lower level. I don't think that the level of Rs 300 can be taken for creating fresh long position.

Q: A lot of data points came out today, which possibly helped the markets rise to the levels, the Land Acquisition Bill where we do understand that there is more consensus, which has come through and it could possibly be tabled in the Budget session come April 22 and then we had data points with regards to the foreign trade policy along with the trade deficit data, which came in at a two-year low for March. What do you think has helped the markets the most this afternoon?

A: I don't think that Land Acquisition Bill can be taken as positive. Yes, the hopes have all been building up, but I will be cautious from Monday onwards when the Budget session will resume. I am excited or happy more with the trade deficit data specifically for the month of March, which has given the trade deficit of sub-USD 10 billion.

The export policy has focused on promotion of the exports going forward, lot of relaxations has been given which is going to reap its fruit in the time to come. So, I am more excited on the lower trade deficit data and the export policy which has been presented by the commerce minister. Many bills are lined up and hopes are building up that things will start to happen from Monday onwards, so even that will be very positive.

Q: Would you ride this momentum in the midcap space as well, the kind of moves that we are seeing and if yes, are there any stocks that you would advice for a shorter term perspective perhaps for the next one week or the next couple of days in the midcap segment itself?

A: In the madcap space stocks like Tata Global, Century Textiles, Sintex Industries and Dish TV can be watched.

Q: How would you approach Indus Ind Bank because a lot of analysts are touting this to be the next HDFC Bank ? In the last 3-4 months the stock has not given too much in terms of returns, it's just been very range bound. So, perhaps the scope to give incremental gains is higher as well. Would you recommend it now or would you be cautious at these levels?

A: I won't call it as a next HDFC Bank in the making but the performance of Indus Ind Bank can compared with Yes Bank. The bank has posted earnings per share (EPS) of Rs 6 plus for the quarter. So, for the whole FY14 the EPS can be extrapolated close to Rs 29-30. 

In fact Yes Bank also came out with good numbers. So, may be if you compare Q4 numbers probably Indus Ind Bank has an edge over Yes Bank. So, may be in due course of time because the differential between both of them again has risen by about Rs 50, at one point of time both stocks used to rule closer to the same levels. The stock can move to about Rs 465-470 levels and that should be seen as a near term resistance for the stock.

Q: What is your view on Cairn ?

A: Once the clearance from government is in the company can very well ramp up their production. Eventually, the company is looking for production of 5 lakh barrels in next 18-24 months. I have a positive view on the stock.

Q: What would you recommend in the next 30 minutes?

A: I have a sell call on Titan because when we saw the stock moving to about Rs 264 we have seen lot of long positions having got built up in the counter by the short term traders or by the near term traders and a long call on Financial Technology because the run up indicates that either the informed buying is happening or may be some short covering is also seen to have happened in the stock with a price target of about Rs 772 for the day.
 
Q: What is your view on Kalyani Steel that stock is up 16 percent. Do you think things have turned around operationally for them now?

A: Right now they are operating at a capacity utilisation of between 42-45 percent and after Karnataka mining judgment capacity will increase to 80-85 percent in next 3-6 months. This stock can rise by 50-70 percent from current levels in next 1 year.

Q: Next week, the coal price pooling issue will be taken up on Monday. How soon do you think this issue could be resolved and how would you approach these stocks now?

A: One has to be little cautious on Coal India because one has to understand the implications on this company because it will be standing as a guarantor or maybe the procurement agency.

Overall, this will be really very big positive because there are so many power generation stocks, so many power finance companies in the form of the public sector undertakings (PSU) banking as well as the dedicated finance. So, I am keeping an eye on this to get resolved quickly.

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JPC gives clean chit to PM, Chidambaram; holds Raja guilty

The Joint Parliamentary Committee on the 2G spectrum scam on Thursday gave a clean chit to Prime Minister Manmohan Singh and Finance Minister P Chidambaram, saying that the duo was not informed of the change in policy by the then telecom minister A Raja.

The JPC report said that the 2G spectrum was allocated on 'first come, first serve' policy and that norms were tweaked to favour a few companies.

The JPC said that the PM and Chidambaram played no role in tweaking the norms and that it was A Raja who changed the rules without informing the PM.

Recently, the Bharatiya Janata Party had hit out at JPC Chairman PC Chacko for "protecting PM" and not calling Raja to depose.

BJP leader Yashwant Sinha had demanded that Raja be called to depose as he was equally culpable as the Prime Minister and the Finance Minister in the case.

"Raja has written to the JPC to say that if he is guilty, so are the PM and the FM. Raja's testimony will cause a lot of problems for both the Prime Minister and the Finance Minister, that is why he isn't being called by the JPC," Yashwant Sinha said.

The Congress hit back saying that the JPC could take its own call. "I haven't read Yashwant Sinha's letter. There are BJP members in the JPC, they can put their views before the JPC themselves. The PM has nothing to do with the JPC. The JPC can take its own decisions," Congress leader rashid Alvi said.

Earlier, Sinha had written to the Prime Minister asking him to appear before the JPC. Citing former Raja's communication to JPC, Sinha had asked the PM to appear before the committee to 'clear his name' following allegations levelled against him.

In his letter, Sinha said any hesitation on his part to appear before JPC will prove that he has "something to hide". Sinha pointed out that when Parliament's Public Accounts Committee was examining the CAG report on the 2G scam, the Prime Minister had publicly offered to appear before it to enable the committee reach the "right conclusions".

"You have not made a similar offer to the JPC despite the fact that many members of the JPC have publicly demanded that you appear before the JPC," Sinha wrote. He claimed that in his communications to the JPC, Raja had levelled "serious allegations" against the Prime Minister and Finance Minister P Chidambaram.

"I think it is in your own personal interest to appear before the JPC and clear your name. You may also suggest the Finance Minister to make a similar offer," he said.

(With additional information from PTI)

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Govt gets consensus on Land Bill; hopes to clear it soon

In a breakthrough development today, the government managed to get consensus on the long pending land acquisition bill in an all party meeting, paving way for the bill to be introduced in the second half of the budget session beginning Monday, reports Aakansha Sethi.

 The government and the Bhartiya Janata Party have come to an agreement on several crucial clauses including the controversial compensation and retrospective clauses.

"After a successful meeting, we are glad to inform that largely there is consensus. We are now certain that this bill will now move to the Parliament," Kamal Nath, Parliamentary Affairs Minister said.

However, there were some discordant voices, including from the left parties and the DMK which still harbors some reservations. "It is not possible to strike unanimity on any bill. This Land Bill is no different. The matter will now be discussed in the Parliament," Ram Gopal Yadav Senior Leader of Samajvadi Party said.

Doubts apart, what seems to have been achieved a breakthrough is the government agreeing key demands of the BJP, including suggestions that instead of acquisition and that the land be only leased to developers. The government has also agreed to amend the bill so as to allow states to enact laws in this regard.

Jairam Ramesh, Rural Development Minister said that BJP approached the all party meeting in a very constructive spirit.

"And there were two issues that Srimati Swaraj and Mr Jaitley raised... one is that the states must be given the option not to acquire but to lease land. We will make provisions for that. And secondly, a very important point they have made - is that a lot of private parties have gone and purchased land after September 5th, 2011 when the bill was introduced in anticipation of the bill becoming an act. And now they will be eligible for compensation when government acquires this land. So there is a huge bonanza, a huge windfall gain for these middlemen. And the benefit will not go to the farmer. So what they are saying is that you must have some provision which ensures that if this land that has been purchased after 5th of September 2011, is acquired by the government, the benefit, if not hundred percent, some 50 percent should be shared with the farmers. I am perfectly in sympathy with this suggestion," Ramesh said.

More than seven changes have been incorporated including compensation for tenants. The clause for a retrospective cut off and 80% consent clause remain unchanged.

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Sebi proposes ring-fencing clients' money

With an aim to safeguard investor interest in the event of default or bankruptcy of brokers, market regulator Sebi on Thursday proposed to ring fence clients' money and collaterals from such risks through steps like greater Internet-based trades and faster settlements. The proposed move, which was issued on Thursday by Sebi as a 'discussion paper inviting public comments, might also have a bearing on sale of pledged shares by large brokers or financiers which often leads to a panic-selling in the market.

Sebi said the current regulatory framework for mitigation of margin-related risks to clearing corporations has "given rise to another risk -- the risk of clients losing their collateral in the event of default/bankruptcy of the broker or TMCM, and accordingly there is a need to take steps to mitigate this." "Further, the overall risk in the system is dependent on the number of unsettled trades in the system at any point of time.

A shorter settlement cycle can go a long way in reducing the risk in the system," Sebi said in the paper, titled 'Risk Management - Safer Markets for Investors'. The regulator said the extant system of risk management could be fine tuned for more efficient use of capital and enhancing safety of investors. For the same, Sebi has broadly proposed three steps -- incentivising Internet Based Trading (IBT) models posing minimal risk, mitigation of risk to client collateral, and T+1 settlement as a measure to reduce overall risk in the system. 'T+1' refers to settlement of trades with all the required payments one day after the execution of the trade order.

Currently, most of the trades are settled on T+2 basis, meaning two days after the execution of trade. The risks posed to clearing corporations, which ensure settlement of trades through transfer of shares from seller's account to the buyer's after the payments, are mitigated by  the margin requirements for the trading members or brokers.

The brokers or trading members are required to maintain a minimum of 50 percent in cash or cash equivalents including fixed deposits. As per the existing risk management system, margins calculated on open positions and collateral deposited against it form the first line of defence, while deposit based capital (base minimum capital, liquid networth) maintained by brokers and trading member form the second line of defence against failure of any market entity.

However, the current framework can be misused by the brokers to pass on the collateral received from its clients as its own collateral, although the good practice would be to keep clients' collateral in segregated accounts.

Sebi said the brokers trade in the market for their business, but investors come here to invest their savings. While the risks associated with the price and the market trends are there for investors, the market structure should be sound enough not to expose clients to other risks like operational risk and credit risk of brokers, Sebi said. "Changes to this effect will go a long way in further instilling confidence among investors in the securities market framework and facilitate greater market penetration.

One such risk incidental to participating in the securities market is the risk to client collateral, and needs to be mitigated," the regulator said.

Inviting inputs and suggestions by May 20, 2013 on the three steps proposed by it to make the Indian markets a safer place for investors, Sebi said the issues for discussion also include impact on cheque payments by retail investors, the costs associated with increased automation of the trading and settlement systems.

Besides, the regulator has also sought suggestions for handing the time-zone issues for foreign investors and cost of standardising communications of institutional trades, in the event of moving to a one-day trading and settlement cycle. Sebi said that the risks posed to the market vary across various categories of the clients.

For example, internet based trading (IBT), where funds or securities of clients are upfront blocked at the time of order itself, pose no further settlement risk to the market. Also, the overall risk in the system is dependent on the number of unsettled trades at any point of time. A shorter settlement cycle can go a long way in reducing the risk in the system, Sebi said.

According to the regulator as this internet trade model brings no additional risk to the system, there is a case to provide incentives to the investors to use this model so as to reduce the overall risk in the system. In this regard the incentives proposed include waiver of any margin requirements by the clearing corporations, that these organisations release any blocked margin for IBT trades as soon as the early pay-in is made and that such trades may be charged lower clearing charges.

"The savings due to such incentives may then be passed on to the end clients in the form of lower brokerage charges or deposit charges thereby incentivising investors to use the IBT model," Sebi said. "It is understood that in certain jurisdictions IBT has facilitated the spread of investment culture among retail investors," it added.

Sebi has said the issue for discussions in this regard includes the kind of arrangement that can be put in place by large financial institutions in coordination with clearing corporations to ensure legal certainty that funds blocked by broker are without fail made available to the clearing corporations, among other things. 

Meanwhile, the regulator has also mandated segregation of client money/securities, deposited as collateral with the broker to ensure that these funds are not misused while maintaining audit records of the client collateral. It has further recommended that broker issue a daily statement of collateral utilisation to clients for their transactions in cash and derivative segments and also report to the stock exchanges/clearing corporations about the margins collected for client trades in derivatives segments.

However, Sebi has raised the issue if there was a need to take further steps for protection of client collateral as norms for segregated accounts already exist.  On measure related to settlement on T+1 basis, Sebi noted that "the financial crisis of 2008 has brought into focus the risks prevalent in the system, the magnitude of which also relates to the length of the settlement cycle". It has therefore opined that a shortened settlement cycle not only reduces the risks "but also reduces and frees up the capital required to collateralise that risk".

As per the regulator, there are various benefits of a 'T+1' settlement such as reduction in number of outstanding unsettled trades at any instant of time which would decrease the unsettled exposure to clearing corporation by 50 percent. Besides, Sebi said that the settlement cycle would also narrow down the time window for a counter party bankruptcy to impact the settlement of a trade.

Moreover, the capital blocked in the system to cover the risk of trades would get proportionately reduced with the number of outstanding unsettled trades at any point of time and would also help in saving operational costs as many processes would move from manual to automation mode. The regulator in this regard has raised the feasibility, cost of modifications as issues of discussions for introducing a T+1 settlement category, among others.

 

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Indian gems and jewellery market worth USD 30.1 bn: Report

The domestic gems and jewellery market is estimated at USD 30.1 billion, according to a report by coloured gemstone producer Gemfields. Coloured gemstones in India have a market share of 8 percent, preceded by diamonds with a market share of 15 percent, the report said.

Quoting Gemfields chief executive officer Ian Harebottle, the report said growth of coloured gemstones has touched an all-time high, and its demand in India alone had gone up by 50 percent a year over the last four years. "We expect this percentage to grow higher in the coming years," he said, adding overall acceptance, demand and popularity of gemstones in India has risen significantly.

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Not bothered by retirement opinion of others: Tendulkar

Sachin Tendulkar may not be in the best of form of late but the senior Indian batman today said that he was not bothered by the opinion of others about his retirement and that he would just stick to his job.

"Lots of people have been alking about this question (of retirement). If I remember correctly, this question began in 2005 and it has been continuing since then. But my answer has been I will stick to my job and you stick to your job," he said at the launch of India's first e-newspaper, www.enewspaperofindia.com here.

"It does not affect me," Tendulkar said when asked whether the constant talk of when he would retire had irritated him or affected his performance. Tendulkar was taking part in a discussion after the launch of the e-newspaper in the presence of Minister of Communications and Information Technology Kapil Sibal and Minister of Information and Broadcasting Manish Tewari here. Tendulkar talked about how media speculated on his 100th international century after he scored his 99th ton during the 2011 World Cup.

"It was the media doing all the build-up. I scored my 99th international hundred during the World Cup. You (media) kept quiet during the World Cup, not discussing about my 100th ton as there were the other more important matter of India winning the tournament. After the World Cup there was again this focus on my 100th international ton," he said.

Some of Tendulkar's counter questions to queries prevented the scribes from asking follow-up questions. Asked if he read newspapers often, Tendulkar shot back, "Main newspaper parte rahunga to kaun khelega (If I keep on reading newspaper then who will play)."

On the question of the likes of former captains Sourav Ganguly and Rahul Dravid and V V S Laxman giving opinions about him, though not necessarily negative, Tendulkar asked, "You think they were talking wrong things about me?"

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Govt approves Rs 1,083 cr revival plan for HMT

The government today approved the Rs 1,083-crore revival package for watch and tractor maker HMT that aims to modernise the company and help it turn around in five years.

The Cabinet Committee on Economic Affairs (CCEA) has approved the Rs 1,083-crore revival package of HMT, official sources said.

The package includes cash infusion to the tune to Rs 450 crore and another Rs 630 crore non-cash assistance.

The package is aimed at turning the loss making company to profit-making one over five years by increasing production, sources said.

The cash component of the package would be used for modernisation, meeting the working capital needs and for wage revision.

It also aims to hike production to 30,000 units over five years, from current 4,500 units.

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Gold recovers by Rs 250; govt cuts tariff value again

Taking into account weak global trends in the past few days, the government slashed the tariff  value of gold to USD 449 per ten gram even as prices rebounded on Thursday by Rs 250 on renewed buying at existing low levels. After crashing by Rs 3,250 in the last four days, gold prices recovered to Rs 26,600 in Delhi market on fresh buying by stockists and retailers.

Price of the precious metal rose by Rs 290 to Rs 25,920 in Mumbai and by Rs 150 to Rs 26,085 in Chennai. However, gold fell by Rs 10 to Rs 26,700 in Kolkata.

Government earlier today slashed the tariff value of gold to USD 449 per ten grams from USD 499 per ten grams. It was only two days back that the tariff value, the base price on which the customs duty is determined to prevent under invoicing, was brought down to USD 499 per ten grams.

Meanwhile, jewellers like Gitanjali and P C Jewellers said people are buying more and sales have surged by up to 3 times as investors are trying to take advantage of 24 percent fall in price from its Rs 32,975 peak in  November 2012. "Sales are strong.

In the last one week, sales in volume terms have risen by 35 per cent and value terms by 25 percent. We expect prices to stablise at Rs 26000-27000 per ten grams," Gitanjali Group CMD Mehul Choksi told PTI.

Expressing same views, PC Jewellers MD Balram Garg said: "Prices have increased slightly today but people are buying as they feel prices would again rise." "Our sales have jumped by 3-4 times than the normal sales around this time. Cumulative sales from our 32 showrooms has increased to Rs 25-30 crore per day as against Rs 8-10 crore prior to the fall in prices," he said.

Gold in overseas markets, which normally set price trend on the domestic front, rose 0.4 per cent to USD 1,381.55 an ounce in Singapore. Prices touched USD 1,321.95 on April 16, lowest since January 2011. 

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ONGC surpasses TCS to become most valued firm

State-owned energy major ONGC on Thursday became the country's most-valued company with market capitalisation of over Rs 2.86 lakh crore, surpassing Tata Group's software services company TCS. At the end of the day's trade, ONGC commanded a market value of Rs 2,86,223 crore, the highest for any listed company in India.

This is about Rs 2,289 crore more than Tata Consultancy Services ' market capitalisation of Rs 2,83,934 crore. Shares of ONGC ended 1.73 percent higher, while those of TCS dipped 0.58 percent at the end of day's trade. Reliance Industries with a market capitalisation of Rs 2,52,968 crore is the third most valued company, followed by ITC (Rs 2,49,144 crore) and Coal India (Rs 1,89,017 crore).

Market capitalisation or the value of a listed company is arrived at by multiplying the total number of its shares with its stock price on particular day or time. This figure changes daily with the change in the stock price

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Vine competitor Cinemagram comes to Android after a year on iOS

Apr 11, 2013, 09.10 PM IST

Source: Tech2.com

Like this story, share it with millions of investors on M3

Vine competitor Cinemagram comes to Android after a year on iOS

While Vine has been caught twiddling its thumbs, the original video-looping app, Cinemagram, has released an Android app after a year of being present only on iOS.

Like this story, share it with millions of investors on M3

Vine competitor Cinemagram comes to Android after a year on iOS

While Vine has been caught twiddling its thumbs, the original video-looping app, Cinemagram, has released an Android app after a year of being present only on iOS.

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While Vine has been caught twiddling its thumbs, the original video-looping app, Cinemagram, has released an Android app after a year of being present only on iOS. Cinemagram will allow Android users to make unlimited uploads using its app.The app allows you to upload four-second videos compared to Vine's six-second ones. What sets it apart from Vine is the fact that Cinemagram allows you to "Instagramise" your videos. Once you've shot your short video and are ready to upload it, you will be presented with a screen that allows you to try out and pick Instagram-like filters for your GIF.

Click here for full story

Tags: Cinemagram, Cinemagram for Android, Cinemagram for iOS, GIF, GIF app, GIF Video App, Vine, Vine for iOS, Instagram, Video Instagram, Vine Controversy, Vine Apple App Store

XOLO Q800 Review

XOLO has recently released a new quad-core handset—the Q800. Does the Q800...

23.06 | 0 komentar | Read More

Narrowness of trade worrying: Udayan

The market witnessed a volatile trading session on Thursday, says CNBC-TV18's managing editor Udayan Mukherjee. The Nifty moved in a 70-80 point trading range, closing finally around the 5,590 mark, up about 30-odd points. The worrying aspect was the narrowness of trade.  The breadth was not good at all, and the market saw almost the same number of advancing to declining stocks.

Also read: Market gains for 2 days straight: Can it sustain pullback rally now?

Though there was patchy performance from the broader market, strength in a few IT and banking stocks got the Nifty to close in the green. But the Nifty is still very precariously poised, as it enters the earnings season.

In what was to be a volatile trading session, the Nifty started strong on Thursday morning, almost a mini gap up on very strong global cues. At one point, it actually drifted into the red around 5,500. From 5,550, it progressed to 5,620 before giving up a little bit towards the last half an hour of trade.

So, it was slightly volatile in a 70-80 point trading range but closing finally around the 5,590 mark, up about 30 odd points. It wasn't a bad day, though you got the feeling at the end of the session that it could have been a bit better.

Individual performances were quite strong. Some of the beaten-down banks stocks like ICICI Bank and IndusInd Bank came back strong during the day. Infosys was very strong going into results on Friday morning, HCL Technologies was good as well and then there were those stars - DLF and Tata Motors, which did very well particularly. Larsen and Toubro (L&T) also had a good day.

The Nifty actually would have closed above 5,600 had it not been for two heavyweights - Bharti Airtel because of all the news which is coming in from the courts and HDFC had a bad day. Other large cap names like National Thermal Power Corporation (NTPC), Reliance Industries and Tata Steel did not have very good sessions either.

The worrying aspect on Thursday was the narrowness of trade.  The breadth was not good at all we had almost the same number of advancing to declining names. In fact, the midcap index actually closed in the red and there were many losers like Dish TV, Shree Renuka Sugars, particularly Everonn Education where there was a downgrade of its ratings by Credit Analysis and Research Ltd. (CARE).

Delta Corp had an off day, Jet Airways did badly. However, there were a few winners like Aurobindo Pharma, Reliance Communications for the second day running, Jain Irrigation, Lupin and Yes Bank. These stocks did quite well. So, patchy performance from the broader market but strength in a few IT and banking stocks which got the Nifty to close in the green. But it is still very precariously poised as it enters earnings season.

23.06 | 0 komentar | Read More

Microsoft Office for iOS, Android might not come till October 2014

Apr 11, 2013, 08.20 PM IST

Source: Tech2.com

Like this story, share it with millions of investors on M3

Microsoft Office for iOS, Android might not come till October 2014

Microsoft Office for Android and iOS devices has been a mouth-watering thought ever since references to it were made late last year. Unfortunately for those

Like this story, share it with millions of investors on M3

Microsoft Office for iOS, Android might not come till October 2014

Microsoft Office for Android and iOS devices has been a mouth-watering thought ever since references to it were made late last year. Unfortunately for those

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Microsoft Office for Android and iOS has been a mouth-watering thought ever since references to it were made late last year, but we may not get to see the apps arrive any time soon. In fact, Microsoft could release the apps as late as October 2014.The folks at ZDNet have got their hands on what is allegedly a leaked roadmap of the "Gemini" wave of Microsoft Office updates. It shows that the productivity suite could hit Android and iOS as late as October 2014, and pretty much dashes any hopes of the suite being released sometime this year.

Click here for full story

Tags: Microsoft Office, Microsoft Office for iOS, Microsoft Office for Android, Microsoft Office Mobile, Office Mobile, Office Mobile iOS, Office Mobile Android, Office Mobile iPhone, Office Mobile iPad, Office Mobile release date, Office Mobile launch date, Office Mobile iOS release date, Office Mobile Android release date, Gemini, Gemini updates, Microsoft Gemini update, Windows Blue, Microsoft Word, Microsoft PowerPoint, Microsoft Excel, Microsoft One Note, Office Mobile for iPhone, Excel for iPad, Lync for iPhone, PowerPoint for iPad

XOLO Q800 Review

XOLO has recently released a new quad-core handset—the Q800. Does the Q800...

23.06 | 0 komentar | Read More

SBI group firm sells over 85 lakh shares in Kingfisher

SBICap Trustee Company, an SBI group entity, today offloaded more than 85 lakh shares of cash-starved Kingfisher Airlines in a transaction worth nearly Rs 7 crore.

Recently, lenders of Vijay Mallya-led group's Kingfisher Airlines have begun selling other group firm shares pledged with them to recover their loans amid huge accumulated losses and soaring debt levels of the airline that is grounded since October 2012.

The shares were pledged as security for loans taken by Kingfisher Airlines. As per data available with the stock exchanges, SBICap Trustee Company sold 85.17 lakh shares of the ailing carrier for Rs 6.70 crore in open market transactions today.

The shares were sold by SBICap at an average price of Rs 7.87. A significant portion of the promoter shares in all UB group companies, including Kingfisher, are pledged with various lenders.

Yesterday, Mangalore Chemicals and Fertilisers (MCFL), another UB Group firm, said about 8.44 per cent of the stake belonging to its promoter firm United Breweries Holdings has been sold by a lender.

MCFL had said the shareholding of the promoter firm United Breweries Holdings has come down to 16.07 per cent from earlier 24.51 per cent in the company "on account of invocation of pledge created in favour of lender".

MCFL, however, did not reveal the name of the lender which sold the United Breweries Holdings's 8.44 per cent stake comprising one crore shares in the company on April 1.

Promoters -- United Breweries Holdings , United Spirit and McDowell Holdings together held a stake of 30.44 per cent in MCFL by the end of December 2012, nearly 70 per cent of their shares were pledged with various lenders.

Last week, SBICap Trustee Company had sold one crore shares of MCFL, accounting for over 8 per cent stake, for Rs 38.5 crore in open market transactions. At the end of December quarter, State Bank of India held 2.82 crore shares or 3.49 per cent stake in Kingfisher Airlines.

Shares of Kingfisher Airlines today surged 4.51 per cent to settle at Rs 7.88 apiece on the BSE.

23.06 | 0 komentar | Read More

Cyprus bailout swells to USD30 billion

A draft document by Cyprus' international creditors shows the island nation will have to take on the lion's share of the measures needed to avoid the nation's bankruptcy.

Also read: Cyprus shows banks can be wound down: ECB's Weidmann

The draft document says the restructuring imposed on Cyprus' financial system, including heavy losses on large bank deposits, additional taxes, privatisations and a part-sale of the central bank's gold reserves are expected to net 13 billion euros (USD 17 billion).

The country's international creditors the European Commission, the European Central Bank and the International Monetary Fund are set to grant the Mediterranean island nation a 10 billion euros (USD 13 billion) rescue loan package.

Cyprus, a member of the 17-nation eurozone, was initially expected to contribute only 7 billion euros to the bailoutpackage.

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OCP Asia to invest $15m in HomeShop18: Network 18

Media conglomerate Network 18 on Thursday said that  Hong Kong-based hedge fund OCP Asia will invest USD 15 million in its e-retailing firm HomeShop18. Network18 will also invest a similar amount in the company.

The OCP Asia deal values HomeShop18 at USD 330 million (about Rs 1,799 crore).

Network 18 will continue to hold majority stake in HomeShop18.

HomeShop18 launched India's first 24 hour home shopping TV channel in 2008. It has a customer base of about 6.1 million and a portfolio of over 12 million products with a logistical reach to over 3,000 locations across the country.

OCP Asia is one of the top 25 hedge fund managers in Asia as per the Asia Hedge Fund 25 Ranking published by Institutional Investor.

Disclaimer: Moneycontrol.com is part of the Network 18 Group.

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Don't see drastic change in steel prices in Q1: Tata Steel

Moneycontrol Bureau

Steel prices are unlikely to change drastically in the first quarter unless key raw material prices come down, Hemant Nerurkar, Managing Director, Tata Steel told CNBC-TV18 today.

Steel demand has remained weak following a slowdown in automobile and construction sector. Steel supply has also been affected due to scarcity of key raw material iron ore post mining ban in Karnataka, generating pricing pressure for steel makers.

According to a recent report by Nomura Research Indian steel prices are currently trading at a discount of 4-5 percent to import parity, down from the highs of 8-10 percent last month. Global steel prices have also come down by 5-6 percent in last month, but Indian steel prices have remained largely flat. Nomura does not expect any major improvement in steel prices in near term.

Nerurkar said that the steel sector is likely to do well only if demand from automobile and infrastructure sector improves. Investment needs to come in at the ground level in infrastructure projects for things to improve, he added.

He lauded Finance Minister P Chidambaram's recent efforts in improving investor environment. He hopes that recent road shows and other actions will improve economic activity.

Tata Steel today announced merger of two of its wholly owned subsidiaries Tata Metaliks, and Kubota Pipes with self. The merger envisages to align synergies of the three companies in to a single value chain, Tata Steel said in a notice to BSE today.  

23.06 | 0 komentar | Read More

Sebi plans separate platform for start-ups

After mooting the idea of separate SME platform, market regulator Sebi is now working on a platform for start-up companies to help them access capital and remove other obstacles.

The proposed platform, unlike the one for the SMEs, will also allow start-ups to list without IPOs, Sebi executive director Sivasubramanian Ramann told a private equity forum here.

After much prodding by the Sebi and the government, both the BSE and NSE have already launched separate platforms for small and medium enterprises (SMEs), who can access markets without filing the long-red herring prospects as well as prior Sebi permission.

Also read: Sebi busts phony investment ring; fears large-scale fraud

In the FY14 Budget, Finance Minister P Chidambaram proposed allowing SMEs and the start-ups to list on the exchanges without the mandatory initial public offering (IPO) process so long as the issuance of the securities is limited to 'informed investors'.

The move is also aimed at allowing SMEs and start-ups to list their shares issued on the basis of private placements to a maximum of 49 investors at a time, thereby providing a certain level of liquidity for early stage investments in SMEs and start-ups.

This will also give venture and private equity investors an additional exit route which they might find attractive. Globally, AIM is the London Stock Exchange's international market for small, growing companies. A wide range of businesses including early stage, venture capital-backed as well as more established companies join AIM for access to capital.

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SBI hits international bond mkt to raise USD 1 billion

State Bank of India today hit the international bond market to raise about USD 1 billion (Rs 5,430 crore) in a five-year dollar-bond sale programme.

"The State Bank today hit the overseas bond market with a benchmark issue (USD 500 million or above). The initial pricing of the fixed rate, five-year senior unsecured bond is fixed at US treasury plus 275 basis points," a merchant banker involved in the deal told PTI late this evening.

SBI chairman Pratip Chaudhuri confirmed the sale programme and said they should be able to close the issue by late tonight. However, Chaudhuri did not put a size to the issue.

The merchant banker also said the bonds, which are being sold to raise USD 1 billion, are being offloaded through SBI's London branch and will be listed on Singapore Stock Exchange.

Also read: SBI group firm sells over 85 lakh shares in Kingfisher

He further said the issue is being sold globally and the bank has run extensive road shows in all the major financial centres like hong Kong, Singapore, London, Frankfurt, New York among others.

The current issue carries a Baa2 rating from Moody's and BBB- by Standard & Poor's. The issue is being managed by four merchant bankers.

This ongoing issue is the third bond sale by SBI in the past two years, with the latest being the USD 1.25 billion it had raised in a 10-year issue last July. That issue was the largest-ever from a domestic bank and also the cheapest five year-issue by a domestic issuer.

At 3.75 percent over the US treasury bills, the SBI issue was the cheapest-ever by a domestic company till date with the effective coupon rate, payable half-yearly, working out to be just 4.125 percent.

SBI had mopped up another USD 1 billion in July 2010 also. The bank has a board mandate to raise USD 10 billion from overseas over the next few years, and it has a headroom to raise nearly USD 6 billion more, including the current issuance, since it had raised nearly USD 4 billion till last year.

So far this year, domestic companies like Reliance Industries , Bharti Airtel , ICICI Bank , HDFC Bank , Exim Bank, Power Grid , and Tata Communications among others, have raised a whopping USD 6.5 billion, which is 65 per cent of what India Inc mopped in the entire previous year.

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India Inc cheers FM's growth initiatives at AIMA awards

The All India Management Association announced the winners of the  Managing India Awards in New Delhi on Thursday. The awards were presented by President of India Pranab Mukherjee who congratulated the award winners for contributing to the country's progress.

Speaking to CNBC-TV18 at the sidelines of the event, Apollo Hospitals , MD Preetha Reddy said it was great initiative by the finance minister to conduct roadshow and is a sign his sincere effort to make a difference. "The finance minister has given a sense of security to the business community and his specific directions have helped banks immensely."

"I don't think the economy is as gloomy as it is made out to be. The infrastructure and manufacturing sectors are facing a lot of problems while the pharmaceutical industry is going through tough times."

Winner of the Transformational Business Leader Of The Year Award, Titan , MD, Bhaskar Bhatt estimates  gold prices may go down further and the status of gold has started to diminish. "The finance minister is doing his best amidst constraints to boost growth in the economy. Though consumer confidence is steady, business confidence is low," he told CNBC-TV18.

Here is the list of the Award winners:

Emerging Biz Leader Of The Year- Vivek Jain, MD, Guj Fluoro Chem

Transformational Business Leader Of The Year -Bhaskar Bhatt, MD, Titan

Indian Multinational Leader Of The Year - Karl Slym,Tata Motors

Outstanding PSU Of The Year - BHEL

Entrepreneurs Of The Year -Shyam and Hari Bhartia, Jubilant Life

Outstanding Contribution To Media - Prannoy Roy

Business Leader Of The Year - Pawan Munjal, MD, Hero MotoCorp

Entrepreneur Of The Decade - Mukesh Ambani, chairman, RIL

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NCML Industries files IPO papers with SEBI

NCML Industries has filed a draft red herring prospectus (DRHP) with SEBI for a public issue of 60 lakh equity shares of a face value of Rs 10 each.

The company is one of the leading edible oil importing, manufacturing and marketing Companies of India with international presence, dealing in various edible oils such as Soya bean oil, Cottonseed oil, Palm oil (Palmolein), and Mustard oil, Rapeseed Oil etc.

The objects of the Offer are to carry out the sale of 60,00,000 Equity Shares by the selling shareholders and to achieve the benefits of listing the Equity Shares on the Stock Exchanges.

The Equity Shares are proposed to be listed on BSE and NSE. BSE shall be the designated stock exchange for the purpose of this offer.

Corporate Strategic Allianz Limited is the book running lead manager and Satellite Corporate Services Private Limited is registrar to the issue.

Also Read: Just Dial gets Sebi nod for IPO; to sell 95.5 lakh shares

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Sebi allows Coimbatore Stock Exchange to exit from biz

Capital market regulator Sebi has allowed Coimbatore Stock Exchange (CSX) to exit equity trading business. Securities and Exchange Board of India (Sebi) said that CSX has substantially complied with the conditions for its exit as per the regulator's framework and therefore "is a fit case to allow exit".

According to an order issued on Wednesday, Sebi said CSX complied with the regulator's exit guidelines and made payment of necessary dues to the regulator, including 10 per cent of the listing fee and the annual regulatory fee. Sebi said that among other things, the stock exchange has complied with the guidelines wherein it has stated that there are no arbitration disputes /investor complaints pending against it and would clear all the liabilities before distributing its assets.

"From the valuation report and undertaking dated March 21 , 2013 of CSX it is observed that all the known liabilities have been brought out and that there is no future liability that is not known as on date," Sebi said. The regulator has asked the CSX to change its name and not to use the expression "Stock Exchange" or any variant of this expression in its name, among other things. CSX was granted recognition as a stock exchange on September 18, 1991.

As per Sebi, the recognition of CSX as a stock exchange was last renewed for a period of one year on September 18, 2005. However, CSX did not apply for renewal which expired on September 17, 2006. Meanwhile in 2008, Sebi issued norms wherein it laid down the framework for exit by stock exchanges whose recognition is withdrawn and/or renewal of recognition is refused by the regulator and who may want to surrender their recognition.

Following this, CSX made a request to Sebi for its exit as stock exchange, in 2009. Last year, Sebi had extended the guidelines for exit to stock exchanges want to exit. Sebi noted that a total 87 members of CSX were in favour of its exit against one member who had raised objection to it.

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Government decontrols sugar: 7 things you need to know

Nasrin Sultana, Riken Mehta
Moneycontrol.com

Cabinet Committee on Economic Affairs (CCEA) on Thursday finally decided to decontrol sugar with certain riders. It is learnt that the decontrol is largely in line with recommendations made by the Rangarajan committee . 

In October last year , the committee recommended deregulation of the sugar sector by giving freedom to mills to sell sugar in the open market. Sugar companies were eagerly waiting for the government to decontrol sugar.

What does decontrol mean?

1. Decontrol means no government control. It will no longer force mills to sell sugar to the government at a discount and will not limit the amount they can sell in the open market.

2. No levy obligation on sugar mills for 2 years. Levy sugar is amount set aside from the total production for Public Distribution System (PDS)

3. Release order mechanism by which government directed sugar companies as to when, how much to release now goes away.

4. The government will buy sugar from open market at market rates and subsidise it to PDS. The government will pay the difference between ex-mill and PDS price. Cabinet fixed the price of levy sugar at Rs 13.50 a kg in 2002 and it was never changed since then. 

5. The government will bear Rs 5300 crore PDS sugar subsidy.

6. No hike in excise duty on sugar. Currently it is Rs 95 per quintal

7. Ex-mill sugar price will be capped at Rs 32 per kg for PDS

Why it was important to decontrol?

• Decontrol was agreed to in cabinet in 2009 but put on hold due to LS polls
• Controlling sugar industry, farmer is politically beneficial in vote bank politics especially for UP, Maharashtra government.
• Sugar cos say government shackles means thin profits, new industry doesn't come up and in turn sugar is imported
• Also decontrol means farmers will get timely and better remuneration as per sugar companies.  

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Government lifts some curbs on sugar sector: source

India has lifted some curbs on sales in the tightly regulated sugar sector, a government source said on Thursday, in a move aimed at stabilising production in the world's biggest consumer of the sweetener.

No further details were immediately available.

The action comes months after the prime minister's economic adviser recommended easing restrictions which are in place partly to keep a lid on local prices and partly as a legacy of a planned economy where the state regulated most sectors.

Analysts have cited tight regulations for sharp swings in output, leading to large-scale imports and exports every few years. India's frequent imports and exports can trigger volatility in global prices.

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Government decontrols sugar, hike in price likely

In what could be seen as a significant concession to the powerful sugar lobby, the government on Thursday cleared the decontrol of the product. The move will likely raise the sugar prices as decontrol means that the manufacturers of the product will now get to decide on the prices without government intervention.

The move will also mean increased expenditure for the government as it provides sugar to the poor at subsidised rates. Sugar manufacturers, however, argue that the decision will benefit the farmers as they will get better returns due to raised prices.

Food Minister KV Thomas, however, said that the "PDS (Public Distribution System) sugar will continue at the same rate, same quantity". "States are free to purchase sugar through transparent system. No decision has been taken on excise duty," he added.

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SC agrees to give early hearing to SEBI plea against Sahara

The Supreme Court today agreed to give an early hearing to SEBI's plea seeking its permission to detain Sahara Group's chairman Subrata Roy Sahara and to initiate contempt proceedings against him for not complying with its orders to refund Rs 24,000 crore to investors.

Also read: Sebi takes a dig at Sahara refund claims

A bench headed by Justice K S Radhakrishnan posted the market regulator's plea for hearing on April 22. The bench agreed to give an early hearing after SEBI's counsel mentioned the matter before it. On March 15, SEBI had moved the apex court seeking arrest of Sahara group promoter Subrata Roy Sahara and barring him from leaving the country after two companies of the group had failed to comply with court's order to refund Rs 24,000 crore to its investors.

SEBI had urged the court to allow it to "take measures for arrest and detention in civil prison of promoter of Sahara Subrata Roy Sahara and the two male directors- Ashok Roy Choudhary and Ravi Shankar Dubey- after giving reasonable opportunity of hearing."

Earlier on February 6, the apex court had issued notice to the Sahara Group and sought its response within four weeks as to why contempt action should not be initiated against its two companies.

It had also said that SEBI was free to freeze accounts and seize properties of the two Sahara companies Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) - for defying the court's August 31, 2012 orders to refund Rs 24,000 crore to investors.

The apex court had on August 31 last year directed the two companies to refund around Rs 24,000 crore to their investors within three months with 15 percent interest per annum for raising the amount from its investors in violation of rules and regulations.

The Sahara group had justified its stand on not refunding the amount and said that a large portion of the amount has already been redeemed to investors before the judgement was delivered.

Earlier on December 5, 2012, the Group had got nine weeks time from the apex court to pay back Rs 24,000 crore with 15 percent interest to over three crore investors in its two companies, with an immediate upfront payment of Rs 5,120 crore.

A bench headed by Chief Justice Altamas Kabir had ordered the Group to immediately hand over a demand draft of Rs 5,120 crore to SEBI and said the balance amount shall be deposited with the market regulator in two instalments to be cleared by early February.

23.06 | 0 komentar | Read More

Nifty support at 5500; bet on Coal India, IndusInd: Experts

Technical analyst Sudarshan Sukhani of s2analytics.com believes that the steep fall in the market is normal and Nifty will see some support at 5,500.

Market analysts SP Tulsian of sptulsian.com and Sanju Verma, MD and CEO, Violet Arch Capital advise investors to bet on Coal India and IndusInd Bank.

Below is an a edited transcript of the analyses on CNBC-TV18

It was carnage on Dalal Street with BSE Sensex shedding over 500 points in two trading sessions. Political uncertainty, ETF funds and FII selling and ever-worsening economic data are the key triggers for the downfall.

The Sensex closed at 18509, down 292 points or 1.55 percent and the Nifty ended at 5574, down 98 points or 1.73 percent.

The benchmark indices have closed below their 200-Day Moving Averages (DMA) for first time since August 2012, which is a bearish sign.

Sudarshan Sukhani of s2analytics.com dismisses worries about the steep fall in the bourses. "This is normal. I don't think we should get worried. There should be strong support around 5,500 but how long that support will hold is difficult to tell," he told CNBC-TV18.

Coal India bucked the trend and went up almost 3 percent after the government decided to buy back about 5 percent of the PSU's shares. SP Tulsian of sptulsian.com says that the move is positive and a similar move could have been initiated in National Aluminum Company Ltd ( NALCO ). "So some short-covering, a bit informed buying coming and an improvement in the fundamentals justify the rise," he adds.

SP Tulsian recommends a trading call on MCX as the stock has been closing higher daily for past four days in tandem with a steady increase in volumes. "Currently it is trading at the day's average of Rs 3. Investors can look for a stop loss of 0.5 percent. So at Rs 925 they could for a target of Rs 938."

The market expert also adds that investors could to initiate a buy call on United Spirits . "I think the stock seems to have bottomed out. My target is for tomorrow is at Rs 1,874 with a stop loss of Rs 1,815."

Tulsian advises investors to stay away from stocks such as Jain Irrigation and IVRCL which have been at multi-month and multi-year lows.

On the issue of sugar decontrol, Tulsian says that the market awaits the scrap of the levy. "If for some reason it gets deferred then again we will see midcap stocks like Triveni , Dalmia Sugar , KCP , Sakthi Sugar , Bajaj Hindustan , Balrampur Chini and Renuka Sugar that have run up by 6-8 percent to correct on Friday by 5-6 percent."

Regarding DLF 's proposed sale of its wind business, Tulsian says that the market is too excited as the company finally plans to exit the wind business.
Telecom expects the Housing Development and Infrastructure (HDIL), Opto Circuits , Jaiprakash Associates and Educomp to witness accelerated selling pressure. "I do not think that anyone will really be brave enough to enter these stocks The trend of these stocks is likely to remain weak."

Sanju Verma, MD & CEO, Violet Arch Capital advises focus on IndusInd Bank . "The banking sector has been under a bit of a cloud for largely wrong reasons. IndusInd has changed its business mix to focus on small road transports operators (STROs) where though the margins and growth are lower, the risks are considerably lower."

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Sanjeev Aga sells entire stake in Idea for over Rs 68 lakh

Idea Cellular today said one of its Directors Sanjeev Aga has sold his entire stake of 60,000 shares in the telecom firm for over Rs 68 lakh through market sale.

Aga sold 60,000 shares comprising 0.0018 per cent of the total share capital of the company for Rs 68,46,955 through market sale, the company said in a regulatory filing.

The share sale took place on March 28, 2013 on NSE, it added. Credited with launching Idea Cellular, Aga relinquished his position as the Managing Director of the company with effect from April 1, 2011. He continues as a director on the board of the company. Himanshu Kapania took over as Managing Director replacing Aga.

Also read: Ambani brothers in Rs 1,200cr deal for fibre optic network

He was appointed Managing Director of Idea Cellular for a period of five years effective from November 1, 2006. In November 1998, Aga was appointed as CEO of the Aditya Birla Group's telecom JV, Birla AT&T Ltd.

He led the company through a period of fast-paced change, through expansion and acquisition, and merger with Tata Cellular, to be CEO of what became Idea Cellular. From May 2005 until October 2006, Aga was Managing Director of Aditya Birla Nuvo Ltd, a diversified conglomerate with manufacturing and service sector businesses.

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CCEA decontrols sugar; companies to save Rs 3,000cr

The Cabinet Committee on Economic Affairs cleared partial decontrol of sugar by abolishing the requirement for private sugar mills to sell a specified amount of sugar to the government at concessional rates. Given the current political situation, with elections being a few months away, this is the maximum the government could have done, reports CNBC-TV18's Siddharth Zarabi.

Also read: 7 things you need to know about sugar decontrol

Purely from a consumer point of view, what this means is that the sugar industry will be able to sell large quantities on a commercial basis. This will be along with the restriction that had been imposed all these years of levy sugar.

This decision could lead to a surge as far as the sugar industry growth is concerned. We could perhaps see a reflection of this in the sugar industry stocks tomorrow once trade opens. However, the ballpark figure at this stage suggest atleast a 20-25 percent growth.

The removal of the levy sugar burden is expected to save around Rs 3,000 crore. The other important decision taken is the abolition of the regulated release mechanism. This has been delayed for long and will reduce inventories. There was a lot of pressure on this matter, but the government has gone ahead and bitten the bullet on this crucial decision.

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Govt partially decontrols sugar; to double subsidy costs

The government today gave sugar mills freedom to sell in the open market and unshackled them from the obligation of supplying the sweetener at subsidised rates for ration shop- a decision that will help the industry save about Rs 3,000 crore annually.

The government maintained that the decision will not lead to any rise in retail prices of sugar. However, it would double the government's subsidy burden to Rs 5,300 crore annually from about Rs 2,600 crore.

The decision to partially decontrol sugar sector, the only industry left under the government control, was taken by the Cabinet Committee on Economic Affairs (CCEA).

"The regulated release mechanism may be dispensed with immediately. Obligation of levy on sugar mills be done away with for sugar produced after September 2012," Food Minister K V Thomas told reporters after the meeting.

Under the regulated release mechanism, the Centre fixes the sugar quota that can be sold in open market. Of late, this mechanism has been relaxed and the quota is now being released on half-yearly basis from the earlier monthly-wise.

In levy sugar system, millers are required to contribute 10 percent of their output to the Centre for running ration shops at cheaper rate, costing industry Rs 3,000 crore a year. Thomas further said the requirement of sugar for ration shops may be procured by states through open market through transparent system.

"The Government of India will bear the difference between the ex-mill price of Rs 32 per kg and retail sugar price of PDS at Rs 13.50 per kg," Thomas added.

The government will continue to fix fair and remunerative price of sugarcane. The minimum distance criteria between two mills will also continue, among other controls.

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