Wednesday, 31 October 2012

Morning Summary, Market Synopsis: 31st October, 2012


                                 
The major Indian equity benchmarks started the day on a weak note. The market is still under pressure and is seen trading in a very crucial zone, however, it is showing constant efforts to keep itself in green. The Sensex is currently trading near the level of 18460 i.e., up by nearly 30 points & the Nifty is trading near the level of 5605 i.e., up by nearly 10 points. The midcap & small-cap counters are trading positive. On the sectoral front, except for the Capital Goods & Bank indices, all the other indices are trading in green. Healthcare & Auto indices are leading the list of gainers with gains of over a percentage point each. Further, the market breadth is positive as four stocks are seen advancing for every three declines.

(pic source: bseindia.com)

News Hour: Satyam Computer Services profit rises 17% to Rs 278 crore, meets estimates


                           

BANGALORE: Satyam Computer Services Ltd, in the process of a merger with parent Tech Mahindra BSE 0.62 % Ltd, met expectations with a 17 per cent rise in second-quarter profit, as customers, aiming to cut IT costs, gave it more orders.
Profits for the September quarter rose to Rs 278 crore ($51.45 m illion) from Rs 238 crore in the year-earlier period, Satyam said in a statement on Tuesday. That compares with analysts' estimate of Rs 273 crore, according to Thomson Reuters I/B/E/S.
The country's $100 billion-a-year software services industry earns about three quarters of its revenue from the United States and Europe. Australia is also an increasingly important market for the sector.
Anand Mahindra purchased Satyam in a government-sponsored sale in 2009 after the founder of the Hyderabad-based company admitted to one of the country's largest accounting frauds.
Mahindra is seeking to create a consolidated IT services powerhouse by merging Satyam and Tech Mahindra, which provides software services to clients such as BT Group Plc and SAAB AB.
Tech Mahindra owns close to 43 per cent of Satyam, now called Mahindra Satyam. It is offering one share in itself for every 8.5 shares of Satyam to absorb the company.
Satyam shares have gained about 39 per cent in value since March 21, when the company announced its plans to merge with Tech Mahindra. The stock closed up 0.65 per cent on Tuesday ahead of the earnings report.
The sector index lagged the broader market this year, but has rallied about 9 per cent since a July low as investors became more optimistic about some stability in the global economic environment.
Satyam's quarterly sales rose 22.8 per cent to Rs 1938 crore. Analysts were expecting sales of Rs 1924 crore.
Earlier this month, top-ranked Tata Consultancy Services BSE 0.13 % and fourth-ranked HCL TechnologiesBSE -0.70 % beat expectations for second-quarter earnings. TCS reiterated it would beat the 11-14 per cent estimate for exports growth made by the National Association of Software and Services Companies, an industry lobby.
Second-ranked Infosys retained its July outlook for the current fiscal year ending March 2013. Infosys was yet to include revenue from the acquisition of a Swiss consultancy Lodestone Holding. Wipro, the No. 3 provider, will report second quarter earnings on Friday.
(source: economictimes.indiatimes.com)

Market Synopsis, Market Heatmap: 30th October, 2012.

The major Indian equity indices ended the day in red. A flat start with a slight positive bias was seen in the early part of the trading session, however the CRR cut along with the cut in the GDP growth forecast to 5.8% and increased provisions for restructured standard accounts from the existing 2% to 2.75% drastically pulled the market down and also succeeded in ending the day in red. The Sensex closed at the level of 18430.85 i.e., down by 204.97 points and the Nifty closed at the level of 5597.9 i.e., down by 67.70 points. The midcap & small-cap counters closed negative by over a percentage point each. On the sectoral front, except for the IT & Teck indices, all the other indices closed in red. Bank index closed as the major loser with losses of two and a half percentage points. Further, the market breadth closed negative as only three stocks were seen advancing for every seven declines.  Find out more at :http://www.facebook.com/bmawealth?sk=app_206541889369118

Commodity Market Update (Silver)

                            

Bullions are trading in green today, with COMEX Gold futures at $1712, up by +$3.80 or 0.23% and Silver near month contract is at $31.95, higher by 20 cents or 0.65% at the time of writing this. Gold prices are likely to trade in a range of $1725-$1700 with a neutral bias for the day. 3-month Copper is trading flat on the LME at $7733, edging higher by just $7 or 0.12% while LME Zinc is the biggest gainer till now, trading at $1845, up by $15.5 or 0.85%. On energy complex, Oil futures are at $85.55, unchanged since last closing while Natural Gas on NYMEX is at $3.81, up by +0.0080 or +0.21%.

BMA Gyaan: 'What is P/E 10 Ratio'?

BMA Words of Wisdom by Dalai Lama.

Tuesday, 30 October 2012

Market Synopsis, Morning Summary: 30th October, 2012.

                                            
Good Morning Everyone..
The major Indian equity indices started the day on a flat note. The RBI credit policy review has led the market to trade cautious while the closed US market is leading to the dullness of the market due to lack of direction. The Sensex is currently trading near the level of 18680 i.e., up by nearly 40 points & the Nifty is trading near the level of 5675 i.e., up by nearly 10 
points. The midcap & small-cap counters are trading positive. On the sectoral front, the indices are trading mixed. Bank & Realty indices are leading the list of gainers with gains of nearly a percentage point while Consumer Durables index is leading the list of losers with losses of nearly a percentage point. Further, the market breadth is positive as four stocks are seen advancing for every three declines.

(pic source: bseindia.com)

News Hour: FIVE THINGS NRIs SHOULD KNOW ABOUT INVESTING IN GOLD..


One: How much to invest in gold 

Gold is considered a store of value and a 'must-have' in your investment portfolio. Gold diversifies your portfolio as well as mitigates risk. If you look at the historical trend, during periods of severe crash of the Sensex, gold has managed to buffer the overall portfolio loss by acting as a 'safe heaven'. For instance, in 2008, while gold grew at 29.18%, the Sensex fell by 54.75%. Now had you invested all your money in the Sensex that year, you would have lost 54.75% of it. But if you had invested 5% in gold and the rest in equities, your total loss would have reduced to 50.55%. Had you invested 25% in gold, your total loss would have been just 33.77%. 

However, gold continues to be a non-productive asset and over long periods of time, returns from gold seldom beat returns from productive assets classes like equities. Unless you are an active investor who can spend a lot of time rebalancing your portfolio, experts recommend an exposure of anywhere between 5 to 15% of your total assets in gold. 

Two: Importing gold versus buying in India 

NRIs can import gold bars, coins and ornaments up to 1 kg during their visit to India. The only pre-condition being that they should have stayed abroad for a period of six months or more. "Since the scheme provides import facility after a stay of six months, an NRI can import gold once in six months. However, short visits to India of 30 days or less are ignored in calculating this period of 6 months," explains Rajesh Dhruva, CEO of femaonline.com. 

This import is however subject to import duty. NRIs would need to declare the gold on arrival and pay duty which presently is 4% of notified value in case of gold bars bearing serial number, weight and manufacturer's name and 10% in case of any other kind of gold, including jewellery. The 'notified' value is a value determined by the Government from time to time. 

Exception: Men are allowed to bring in duty free gold worth Rs 10,000, for women the limit is Rs 20,000. 

Does it make sense for NRIs to import gold from abroad? Amresh Acharya, Director-Investments, World Gold Council explains, "With hallmarking now available at many leading gold outlets, the purity and quality of gold in India is equivalent to that in other parts of the world. However, based upon the priority of the consumer there are two counts on which this choice can be made. Traditional gold jewellery in India is inspired by the country's rich heritage and craftsmanship. Consumers considering purchase of jewellery, especially traditional designs for socio- cultural reasons, will find unparalleled designs and themes in India. In terms of price, the import duty coupled with other local taxes has made gold in India more expensive compared to some other countries. However other costs like making charges etc could be more expensive in countries particularly the US and the UK. So the consumer could be better off buying gold, particularly intricate jewellery, in India." 

(Source: economictimes.indiatimes.com)

Market Heatmap, Market Synopsis: 29th October, 2012



The major Indian equity benchmarks ended the day on subdued notes. Weak Asian and European markets along with the closed US markets failed to provide any direction to the Indian markets. Despite a constant struggle to hold on to itself and to remain positive, it kept sliding down and then finally ended the day flat. The Sensex closed at the level of 18635.82 i.e., up by 10.48 points and the Nifty
closed at the level of 5665.6 i.e., up by 1.30 points. The midcap & small-cap counters closed negative by nearly half a percentage point each. On the sectoral front, the indices closed mixed. Oil&Gas & Consumer Durables indices closed as the major gainers with gains of over half a percentage point each while Capital Goods indices closed as the major losers with losses of over one and a half percentage points. Further, the market breadth closed negative as only three stocks were seen advancing for every five declines.Find out morehttp://www.facebook.com/bmawealth/app_206541889369118

Commodity Market Update (Gold):


Precious metals are trading silent since morning on COMEX, the actively traded Gold contract is at $1712, up by just 60 cents and prices on domestic market are trading higher by 50 points at Rs.31070.00. Silver prices are at $31.94, lower by 0.30% or 9 cents and are likely to trade in a range with a negative bias for the day. Copper is at $7724.25, down by 1.24% on LME, as the slower economic activity in China is restricting prices to move higher; $7400.00 seems to be a strong support for Copper prices below that prices may decline to $6500 in long term. On energy complex, Crude Oil is trading lower by a percent at $85.48 while Gas is trading at $3.396, down by 0.12%
.

BMA GYAAN: What is 'Ceteris Paribus'?

BMA Words of Wisdom by Charlie Chaplin.

Monday, 29 October 2012

Market Synopsis, Morning Summary: 29th October, 2012.


Good Morning Everyone..
The major Indian equity benchmarks have started the day in green despite the cautiousness and negativity prevailing in the Asian and Overseas markets. The Sensex is currently trading near the level of 18690 i.e., up by nearly 65 points & the Nifty is trading near the level of 5685 i.e., up by nearly 20 points. The midcap & small-cap counters are trading positive. On the sectoral front, the indices are trading mixed. Oil&Gas & Metal indices are leading the list of gainers with gains of over half a percentage point each and IT index is leading the list of losers. Further, the market breadth is positive as seven stocks are seen advancing for every five declines.


(Pic source: bseindia.com)

Saturday, 27 October 2012

Wishing all of you a very happy and prosperous Eid..

Market Synopsis, Market Heatmap: 26th October, 2012.

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The major Indian equity benchmarks finally ended the day and the week on a weak note. The session had started on a dull note following the cautious overseas and Asian markets. The Sensex closed at the level of 18625.34 i.e., down by 133.29 points and the Nifty closed at the level of 5664.3 i.e., down by 41 points. The midcap & small-cap counters closed negative by nearly a percentage point each. On the sectoral front, except for the Auto index, all the other indices closed in red. Consumer Durables index closed as the major loser with losses of over two and a half percentage points. Further, the market breadth closed negative as only five stocks were seen advancing for every seven declines.

News Hour: ICICI Bank Q2 PAT at Rs 1960 crore, beats estimates



MUMBAI: ICICI BankBSE -0.73 %, the country's largest private sector bank on Friday reported a profit after tax (PAT) of Rs 1960 crore for the second quarter versus an ET Now poll estimate of Rs 1869 crore. This is a 30.4% growth in profit on a year-on-year basis, bolstered by strong loan growth and higher fee-based income, it said on Friday.

ICICI aims to grow its domestic loan book by around a fifth this fiscal year ending March 2013, led by consumer loans and working capital, and will be particularly cautious in unsecured retail lending and project finance, where risks are higher, it has said.

The Net interest income (NII) stood at Rs 3371 crore versus a poll estimate of Rs 3242.4 crore. The grossnon-performing assets (NPAs) came in at 3.54%. The net NPAS were at 0.78% versus 0.71% on a quarter-on-quarter basis.
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Net interest margins, a key gauge of profitability for banks, were steady at 3 percent.

ICICI's results suggest that profits are more likely to grow at private banks than at government-owned banks, which account for 70 percent of the market in India, but whose lending decisions are not always driven by commercial considerations, analysts say.

Smaller private lenders HDFC BankBSE 0.01 % Ltd,Axis BankBSE -0.60 % Ltd and Yes BankBSE -0.82 % Ltd all recently reported strong quarterly profit growth.

Earlier on Friday, Punjab National BankBSE -6.88 % posted an 11.5 percent drop in quarterly net profit with bad loans as a percentage of total assets rising 2.69 percent in the September quarter from 0.84 percent a year ago.

The ratio of bad loans at ICICI dropped to 0.78 percent compared with 0.93 percent a year ago.

So far this year, ICICI shares have risen nearly 60 percent, outpacing 45 percent growth in overall bank stocks and the broader Indian market's 23 percent gain. Its current market value is close to $23.3 billion.

The bank suffered badly from the global financial crisis as many consumer loans went into default, but since then it has tightened lending rules and improved the quality of its loan book.

The bank's stock gained momentum post the Q2 results and rose 1% to Rs 1100. At 12:44 PM the stock was trading at Rs 1090.10, up 0.36% on the Bombay Stock Exchange.
(Source: economictimes.indiatimes.com)

BMA Gyaan : GAP

BMA Words of Wisdom by Bruce Lee.

Market Synopsis, Morning Summary: 26th October, 2012


Good Morning Everyone,
The major Indian equity benchmarks started the day on a weak note and since then it is continuously seen to be sliding down. Weak Global cues and cautious Asian markets has led to a dubious start to the November month’s futures contract. The Sensex is currently trading near the level of 18640 i.e., down by nearly 120 points & the Nifty is trading near the level of 5670 i.e., 
down by nearly 35 points. The midcap & small-cap counters are trading negative. On the sectoral front, except for the Auto index, all the other indices are trading in red. Consumer Durables & Oil&Gas indices are leading the list of losers with losses of over a percentage point each. Further, the market breadth is weak as only three stocks are seen advancing for every five declines.

(Pic source: bseindia.com)

Friday, 26 October 2012

News Hour: Mahindra & Mahindra Q2 net profit up 22% at Rs 902 crore, beats expectations

Mahindra and Mahindra Ltd , country's biggest utility vehicle manufacturer, beat analysts' estimates with a 22 per cent rise in second-quarter net profit
MUMBAI: Mahindra and Mahindra Ltd , country's biggest SUV manufacturer, beat analysts' estimates with a 22 per cent rise in net second quarter profit as its car sales outperformed the market, but margins were hit by a fall in tractor sales.


Mahindra, the world's biggest tractor maker by volume, said its domestic tractor sales fell 13.8 per cent in the June-September quarter, hit by cooling economic growth and lacklustre monsoon rains, dragging the company's operating margin down to 11.4 per cent from 12 per cent a year ago. 

"Tight macroeconomic and political constraints at home and worries about a second global recession have taken a heavy toll on the Indian economy," the company said in a statement. "The current economic situation is quite challenging." 

Mahindra said on Thursday net profit for the September quarter was Rs 902 crore ($168 million), against Rs 7.37 crore a year earlier. 

Net sales rose 33 per cent to Rs 9659 crore. Analysts, on average, had expected profit of Rs 840 crore on revenue of Rs 9572 crore, according to Thomson Reuters I/B/E/S. 

Mahindra, which controls South Korean car maker Ssangyong Motor Co Ltd, said revenue from automotive sales jumped 58 per cent in the quarter, as surging demand for SUVs helped the company defy the gloom in India's car market. 

The flagship company of the $15.4 billion Mahindra Group, the motor firm builds every other SUV sold in India and accounts for 40 per cent of the country's tractor market. 

Shares in the automaker, valued at around $7.5 billion by the market, extended gains to rise as much as 3.1 per cent after the results were released, compared with a flat Mumbai market . 

"It was expected that the tractor business would drag down margins on lower volumes," said Jinesh Gandhi, automotive analyst at Motilal Oswal Securities in Mumbai. "But car sales more than made up for it."

(Source: economictimes.indiatimes.com)

Commodity Market Update (Natural Gas)


Precious Metals are trading positive today after FED kept its interest rates unchanged and continued with its MBS program and Operation Twist. Gold is trading at 1715.10, +13.5 or +0.80% and Silver is at 32.09, +0.47 or +1.5%. Domestic prices are also higher and Gold is up 70 points to trade at 30915.0 per ten grams and Silver is trading at 59387.0, up 387 points. The rupee played the spoiler to some extent and is currently trading at 53.65, up 7 paise against the dollar. The FED’s accommodative stance and continued monetary easing has supported prices since last evening and is expected to do so. Base Metals with the exception of Nickel are trading in red on LME. Nickel is trading at 16849.0 per ton, +98.0 or +0.60% since morning, Copper is down 17.5 or 0.26% at 7837.0 per ton. Copper finds good support at 7819.0 below which prices may move down to 7700.00 odd levels this week. On MCX, Copper is sharply lower and is trading at 424.25, down 3.15 or 0.73%. Crude Oil is trading higher on NYMEX at 86.26 per barrel, up 53.0 or 0.62% and Natural Gas is slightly higher at 3.453 per mmBtu. On MCX, Natural Gas is trading heavily into red though, prices are trading at 185.10, down 3.40 or 1.80% whereas Crude Oil is slightly higher by 8 points at 4657.0. The bias is negative on both the commodities. Expect the markets to remain volatile with tons od data coming in the evening.

Key Economic Releases: Core Durable Goods Order MoM, Durable Goods Order MoM, Unemployment Claims, Pending Home Sales and Natural Gas Storage

Market Heatmap, Market Synopsis: 25th October


Market Heatmap:
The October month Futures contract finally succeeded in expiring in green after observing great volatility till the mid-afternoon session. This led the Sensex to close at the level of 18781.63 i.e., up by 71.61 points and the Nifty to close at the level of 5705.3 i.e., up by 13.90 points. The midcap counters closed positive while the small-cap counters closed negative. On the secto
ral front, the indices closed mixed. Auto index closed as the major gainer with gains of a little less than a percentage point while Realty index closed as the major loser with losses of over a percentage point. However, the market breadth closed negative as only five stocks were seen advancing for every seven declines.Find out morehttp://www.facebook.com/bmawealth/app_206541889369118

BMA Gyaan : "NASDAQ"

HAPPY DUSSEHRA


Celebrate the victory of the forces of good over Evil.
Lets celebrate an auspicious day to begin new things in
life....HAPPY DUSSEHRA....!!

BMA Words of Wisdom by Richard Branson

Thursday, 25 October 2012

Market Synopsis, Morning Summary: 25nd October, 2012


Good Morning Everyone,
The major Indian equity benchmarks gave a flat opening in the early morning trade and is currently also seen trading at similar levels. Today being October Futures contract expiry day, the market is expected to be a little volatile. The Sensex is currently trading near the level of 18725 i.e., up by nearly 15 points & the Nifty is trading near the level of 5690 i.e., up by nearly 2 points. The midcap counters are trading negative while the small-cap counters are trading positive. On the sectoral front, the indices are trading mixed. Oil&Gas & Metal indices are leading the list of gainers with gains of over half a percentage point each while Teck, healthcare & IT indices are leading the list of losers with losses of less than half a percentage point each. Further, the market breadth is flat.

Wednesday, 24 October 2012

Market Synopsis, Morning Summary: 23nd October, 2012

Good Morning Everyone,
The major Indian equity benchmarks finally ended the day in red. The cautious and volatile Asian markets along with the October month expiry, pulled down the major Indian indices. This led the Sensex to close at the level of 18711.74 i.e., down by 81.70 points and the Nifty to close at the level of 5691.4 i.e., down by 25.75 points. The midcap & small-cap counters closed negative. On the sectoral front, except for Capital Goods index, all the other indices closed in red. FMCG index closed as the major loser with losses of over a percentage point. Further, the market breadth closed negative as only four stocks were seen advancing for every seven declines.

Tuesday, 23 October 2012

Market Synopsis, Morning Summary: 22nd October, 2012

The major Indian equity benchmarks managed to close the day in green. The day had started on a positive note however, a short-term weakness was observed during the early part of the session. But, finally the positivity of the Indian market helped in pulling the indices back in the green. This led the Sensex to close at the level of 18790.11 i.e., up by 107.79 points and the Nifty to close at the level of 5717.15 i.e., up by 32.90 points. The midcap & small-cap counters closed positive. On the sectoral front, the indices closed mixed. Capital Goods & Healthcare indices closed as the major gainers with gains of over a percentage point each while FMCG index closed as the major loser with losses of over half a percentage point. Further, the market breadth closed flat.

Sunday, 21 October 2012

BMA IQ: 20th October, 2012


BMA Inspiration: 'Mason of philosophy' The story Of the great philosopher: Socrates.

SOCRATES, the celebrated classical Greek Athenian philosopher  was born at Athens in the year 469 B.C. Socrates was the son of Sophroniscus, an Athenian stone mason and sculptor, and Phaenarete, a midwife. His father, was a sculptor and it is believed Socrates worked as mason for many years before he devoted his life to philosophy. As he was not from a noble family, Socrates received basic Greek education which included not only a knowledge of the mother tongue, and readings in the Greek poets, but also the elements of arithmetic, geometry and astronomy as then known. Along with that he also learned his father's craft.

It is also believed that he had worked as mason for many years before he devoted his life to philosophy. Contemporaries differ in their account of how Socrates supported himself as a philosopher. Both Xenophon and Aristophanes state Socrates received payment for teaching, while Plato writes Socrates explicitly denied accepting payment, citing his poverty as proof. 


Excepting in connection with his philosophical career, few circumstances of his life are known. Socrates married Xanthippe, a younger woman, but did not have a happy married life with her. She bore him three sons—Lamprocles, Sophroniscus and Menexenus. There is little known about her except for Xenophon's characterization of Xanthippe as "undesirable." He writes she was not happy with Socrates's second profession and complained that he wasn’t supporting family as a philosopher. By his own words, Socrates had little to do with his sons' upbringing and expressed far more interest in the intellectual development of Athens' young boys.


Athenian law required all able bodied males serve as citizen soldiers, on call for duty from ages 18 until 60. He had served as a hoplite, i.e a heavy-armed foot-soldier, in three military campaigns he had participated, i,e during the Peloponnesian War, at Delium, Amphipolis, and Potidaea, where he saved the life of Alcibiades, a popular Athenian general.Socrates was known for his courage in battle and fearlessness, a trait that stayed with him throughout his life. After his trial, he compared his refusal to retreat from his legal troubles to a soldier's refusal to retreat from battle when threatened with death.


Plato's Symposium provides the best details of Socrates's physical appearance. He was not the ideal of Athenian masculinity. Short and stocky, with a snub nose and bulging eyes, Socrates always seemed to appear to be staring. However, Plato pointed out that in the eyes of his students, Socrates possessed a different kind of attractiveness, not based on a physical ideal but on his brilliant debates and penetrating thought. Socrates always emphasized the importance of the mind over the relative unimportance of the human body. This credo inspired Plato’s philosophy of dividing reality into two separate realms, the world of the senses and the world of ideas, declaring that the latter was the only important one.



Execution

The jury was not swayed by Socrates's defense and convicted him by a vote of 280 to 221. Possibly the defiant tone of his defense contributed to the verdict and he made things worse during the deliberation over his punishment. Athenian law allowed a convicted citizen to propose an alternative punishment to the one called for by the prosecution and the jury would decide. Instead of proposing he be exiled, Socrates suggested he be honored by the city for his contribution to their enlightenment and be paid for his services. The jury was not amused and sentenced him to death by drinking a mixture of poison hemlock.
Before Socrates's execution, friends offered to bribe the guards and rescue him so he could flee into exile. He declined, stating he wasn't afraid of death, felt he would be no better off if in exile and said he was still a loyal citizen of Athens, willing to abide by its laws, even the ones that condemned him to death. Plato described Socrates's execution in his Phaedo dialogue: Socrates drank the hemlock mixture without hesitation. Numbness slowly crept into his body until it reached his heart. Shortly before his final breath, Socrates described his death as a release of the soul from the body.

(Source: biography.com, sacklunch.net, wikipedia)

Saturday, 20 October 2012

BMA Special Occasion: Durga Puja Wishes.

Market Heatmap, Market Synopsis: 19th October, 2012.


 


The major Indian equity indices finally ended the day and the week, on a dull note. A subdued start was led by an all round selling pressure seen across the indices. Market participants seemed cautious as a two-day European Union summit started today at Brussels. This led the Sensex to close at the level of 18682.31 i.e., down by 109.62 points and the Nifty to close at the level of 5684.25 i.e., d
own by 34.45 points. The midcap counters closed negative by over half a percentage point while small-cap counters closed negative by a little less than half a percentage point. On the sectoral front, except for FMCG & Consumer Durables indices, all the other indices closed in red. Power & Metal indices closed as the major losers with losses of over one and half a percentage points each. Further, the market breadth closed negative as only five stocks were seen advancing for every eight declines. Find out more http://www.facebook.com/bmawealth/app_206541889369118.


Commodity Market Update (Copper): 19th October, 2012

Gold and Silver prices are trading lower since morning. The actively traded Gold contract is down by $10.50 at $1734.20 and Silver is lower by 52 cents or 1.61% at $32.34. We expect prices to remain in a range for the day as the traders are cautious ahead of the uncertainty over the Spain’s bailout. Energy prices are trading silent at $92.05, down 0.07% and Gas contract is trading lower by a quarter percent at $3.578. Base metals prices are trading sharply lower on LME. Three-month Copper is down by more than 1% at $8100 and Nickel is trading lower by 1.33% at $17100.

News Hour: ITC reports 21.2% jump in net profit at Rs 1836.42 crore; no impact on cigarette sales despite increase in taxes

The country's largest cigarette maker ITC Ltd, posted a 21.6 percent jump in quarterly net profit, largely in line with expectations.
KOLKATA: ITC LtdBSE 1.30 % reported 21.2% jump innet profit at Rs 1836.42 crore for the second quarter ended September 30, on back of 19.6% growth in net sales at Rs 7146 crore. 

The Kolkata-based marketer's non-cigarette FMCGbusiness, comprising of packaged food, personal care, lifestyle retail and stationery products, registered robust revenue growth of 26.4% at Rs 1690 crore and reduced losses by 45% at Rs 30.31 crore over same period last year. boosting the company's over-all profitability. 

The company's flagship cigarette business too grew by 14% recording net sales of Rs 3385.15 crore, despite wide-spread anticipation that the sales growth might be impacted due to steep hike in taxes on cigarettes which formed the company to increase cigarette prices.

ITC attributed the strong performance to its branded packaged food, agri-business and cigarettes. 

The company said the branded packaged food business, comprising of Sunfeast biscuits, Aashirvaad atta, Sunfeast Yippee! Noodles and the Bingo! range of savoury snacks, recorded significant growth during the quarter across all major categories, which along with smart commodity sourcing and supply chain optimisation helped enhance profitability. ITC said Sunfeast biscuits has emerged as the market leader in the highly competitive premium cream biscuits segment, led by differentiated and innovative products such as Dream Cream, Dark Fantasy Choco Fills. 

ITC said it enriched its soap category during the quarter with new variants and consumer response to recent launches such as Vivel Summer Fair, a differentiated summer offering for fresh and fair skin, has been encouraging. In the education and stationery products, Classmate notebooks consolidated its leadership position. 

The company said the sharp increases in excise duty and VAT on cigarettes during the year has exacerbated the problem of discriminatory and high taxation on cigarettes within the tobacco industry, thereby creating severe pressure on industry volumes. ITC said the high taxes on cigarettes is creating a shifting consumption to lightly taxed or tax evaded tobacco products such as bidi, khaini, chewing tobacco and gutkha which constitute 85% of overall tobacco usage in India. 

However, ITC undertook multiple initiatives during the quarter across key brands such as Classic, Gold Flake, Flake and Navy Cut such as pack modernisation, introduction of new variants and limited edition packs to further enhance market standing. ITC said the launches in the new filter segment (cigarette length not exceeding 65 mm) have met with favourable consumer response and the business is rolling out the products to target markets. 

However, the company's hotel business -- which is the second largest chain in India -- failed to boost sales during the quarter which ITC attributed to the weak economic conditions prevailing in key international source markets and India, and a significant addition in room supplies in several cities. The business grew sales marginally by 2% at Rs 216.96 crore, while profitability came down by 64% at Rs 15.3 crore. 

During the quarter, ITC launched its premium 600-room Chennai property. Construction activity of the new luxury properties at Kolkata and at the Classic Golf Resort near Gurgaon are also progressing as per plans. 

The paperboard, paper and packaging business grew sales by 6% during the quarter, despite a marginal dip in profitability which ITC attributed to the steep hike in input prices, particularly that of wood. This business is also investing in a paperboard machine at Bhadrachalam and new packaging and printing facilities at Haridwar. The agri-business recorded a robust growth of 41% during the quarter aided by wheat exports. This business provides sourcing support to the company's cigarettes and branded packaged foods business. 

(Source: economictimes.indiatimes.com)

BMA Gyaan: What is 'Close-End Fund'?

BMA Words of Wisdom by Jawahar Lal Nehru.

Friday, 19 October 2012

Morning Summary, Market Synopsis: 19th October, 2012


The major Indian equity indices started the day on a subdued note and are currently seen trading at similar levels. The Sensex is trading near the level of 18720 i.e., down by nearly 70 points and the Nifty is trading near the level of 5700 i.e., down by nearly 20 points. The midcap & the small-cap counters are trading positive. On the sectoral front, the indices are trading mixed. Consumer Durables index is leading the list of gainers with gains of over a percentage point while Oil&Gas index is leading the list of losers with losses of over half a percentage point. Further, the market breadth is flat.

(pic source: bseindia.com)




News Hour: TCS Q2 results: Five things to watch out for

Tata Consultancy Services is set to announce its second-quarter results on Friday.
Tata Consultancy Services BSE 1.85 % is set to announce its second-quarter results on Friday. The results of India's largest software services firm will be watched keenly for pointers to the outlook for the whole IT industry.

Its performance will be a key indicator to how some conflicting trends and commentary emerging from the sector should be read Mindtree recently cut its growth forecast, even as technology researcher Gartner said the Indian IT industry could well outperform the 11%-14% growth target set by industry body Nasscom.

Here are five things to watch out for:

Growth and management commentary on demand

Since TCSBSE 1.85 % does not give guidance, management commentary on the demand environment will be a key pointer to how the company will perform in the second half of the fiscal.

With the financial services industry in the US and Europe under stress, TCS needs to grow business from clients in other industries such as retail and healthcare to maintain its industry-leading growth rate in the coming quarters.

In the previous quarter, all the industry segments had shown sequential growth with retail, telecom and BFSI (banking financial services and insurance) showing significant growth. ETIG estimates sales to grow 4.5% sequentially to Rs 15,538 crore.

Profit margins

TCS has consistently delivered an operating profit margin of more than 27% in the last four quarters. If it maintains the same performance, it is likely that it will beat second-ranked Infosys, which saw its operating profit margin fall to 26.3% on the back of salary increments and higher sub-contracting costs.

However, TCS is also expected to feel the heat of higher sub-contracting costs because visa rejection is forcing Indian IT firms to hire more sub-contractors in the US. ETIG estimates TCS net profit at Rs 3419.2 crore, representing a 4.2% rise over the previous quarter.

New client and deal wins

Could be an area of concern for investors if Infosys' second-quarter performance is an indicator. InfosysBSE 0.34 % saw one of the lowest client additions in the second quarter at 39 and reduction of clients contributing over $300 million, $100 million and $90 million annually.

With large technology outsourcing deals worth billions of dollars coming up, management commentary on TCS's deal pipeline would be keenly watched.

(Sou

Market Heatmap, Market Synopsis: 18th OPctober, 2012

The major Indian equity indices extended intraday gains and closed by nearly a percentage points positive. The investor sentiment was boosted by data showing acceleration in industrial production and retail sales in China in September 2012. Nifty hit its highest level in nearly one week to close at 5718.70 while BSE Sensex, went up by 181.16 points or 0.97% to close at 18791.93. The mid cap and sm
all cap counters, both closed with hefty gains. Banking and realty indices closed as the major gainers with nearly two and a half percentage gain while FMCG index declined by thirty basis points. The market breadth was positive with two advancing stock against every declining stock. Find out more http://www.facebook.com/bmawealth/app_206541889369118

Commodity Market Update (Natural Gas)




Gold and Silver prices are trading mixed since morning; Gold futures listed on CMX is at $1748, lower by 0.27% while Silver front-month contract is also trading lower at $33.12, -0.34% or 11 cents. Prices are likely to consolidate near the current level, as the mixed economic data may lift uncertainty in bullion market. Oil prices on NYMEX are trading flat at $92.15, near its previous closing while Gas prices are at $3.462, down by 0.23%. On base metals, prices are trading just in green, slightly higher from their previous closing. LME Nickel is at $17218, higher by half a percent while Copper prices remained muted at $8219.

Data to watch:
US Unemployment Claims
US Philly Fed Manufacturing Index
US Natural Gas Storage

Happy Navaratri

BMA Gyaan- Definition of 'Paper Dealer

BMA Words of Wisdom by Guru Nanak.

Thursday, 18 October 2012

Market Synopsis, Morning Summary: 18th October, 2012



The major equity indices trimmed gains after opening higher on the back of firm Asian stocks and latest data from US that indicated that US housing market continues to improve. Asian stocks edged higher on Thursday after the latest data showed that growth rate in China's industrial production and retail sales accelerated in September 2012. The market breadth was strong with seven advancing stocks for every five declining stock. On the sectoral front, realty gained by nearly a percentage point while Auto & Power gained by almost half a percentage point. Metals and Oil & Gas traded with negative bias with losses of nearly 25 basis points. Telecom stocks dropped after the Telecom Commission   recommended that all spectrum given to operators in the 900-MHz band should be refarmed to the 1,800-MHz band at the time of renewal of licences, beginning 2014. 

(pic courtesy: bseindia.com)

News hour : SBI halves processing charges on home, auto loans

"With this reduction, the bank is quoting the lowest processing fee on both home and auto loans to our esteemed customers," SBI said.
NEW DELHI: State Bank of IndiaBSE -0.64 % (SBI) today reduced the processing fee on home and auto loans by 50 per cent to cash in on festive season demand. 

This offer is applicable on loans availed from October 17 to December 31, SBIBSE -0.64 % said in a statement. 

"With this reduction, the bank is quoting the lowest processing fee on both home and auto loans to our esteemed customers," it said. 

For home loans up to Rs 25 lakh, the processing charge has become 0.125 per cent of the loan amount from 0.25 per cent, it said. 

In case of loans between Rs 25 lakh and Rs 75 lakh, the processing fee would be Rs 3,250 as against Rs 6,500 while loans above Rs 75 lakh, it would be flat Rs 5,000 as compared to Rs 10,000 per application earlier.

With regard to auto loan, the processing charge has been slashed to 0.255 per cent of the loan amount as against 0.51 per cent. 

Last month, SBI reduced its base rate or minimum lending rate by 0.25 per cent to 9.75 per cent following RBI's monetary policy action. 

The decision by the country's largest lender come a day after the Reserve Bank reduced Cash Reserve Ratio ( CRR) by 0.25 per cent to 4.5 per cent. 

SBI now offers loans up to Rs 30 lakh at 10 per cent and loans above Rs 30 lakh at 10.15 per cent. 

Yesterday another public sector bank Punjab & Sind Bank had also announced festival bonanza scheme for home and auto loans. 

The scheme, as per the Punjab & Sind Bank statement, is applicable to fresh and takeover cases of such loans made during the current festival season beginning October 15. 

There is no maximum ceiling on the amount of loan and number of vehicles to be financed by the bank. It further said that no processing fee is levied on these loans.

(Source: economictimes.indiatimes.com)

UNITED NATIONS INTERNATIONAL DAY FOR THE ERADICATION OF POVERTY

Market Heatmap, Market Synopsis: 17th October, 2012

The major Indian equity indices finally ended the day on a subdued note. The session had started with a positive gap-up, however soon after, selling pressure dragged the market down, though the closing was seen a little above the intraday lows. All this volatility, led the Sensex to close at the level of 18610.77 i.e., up by 33.07 points and the Nifty to close at the level of 5660.25 i.e., up by 12.25 points. The midcap counters closed negative while small-cap counters closed positive. On the sectoral front, the indices closed mixed. Consumer Durables and Capital Goods indices closed as the major gainers with gains of over half a percentage point each while Realty & Oil&Gas indices closed as the major losers with losses of over half a percentage point each. Further, the market breadth closed negative as only five stocks were seen advancing for every six declines.

Commodity Market Update (Crued Oil)


                             

Bullions are trading slightly higher in a range since morning, Gold is near $1750, up by 0.15% while Silver is at $33higher by 0.10%. Gold prices are likely to rebound after falling in last couple of sess
ions as the investors are showing interest in Gold at a lower price. Gold is likely to face resistance near $1780 to $1800 in the coming sessions. The front-month contract for Crude Oil is trading at $92.05, more or less unchanged from the previous closing; however the Oil traders are waiting for the Storage report to be released at 8.00 PM today. Natural Gas futures prices are at $3.442, +0.15% or just 5 cents higher and are likely to move in a range. Base metals are trading in red; Copper is lower by half a percentage to trade at $8100.00 on LME, pressured by the uncertainty over the Chinese economic data.

Data to watch:
US Building Permits m/m
US Housing Starts m/m
US Crude Oil Inventories

BMA Gyaan- 'What is Call Market?'

BMA Words of Wisdom by Dhirubhai Ambani