News Hour: Fiscal deficit rises to $67.5 billion; 71.6% of budgeted target

NEW DELHI: The country's fiscal deficit during the April-October period rose to Rs 3.68 trillion ($67.5 billion), or 71.6 per cent of the budgeted full fiscal year 2012/13 target, government data showed on Friday. 
During the same period in the previous fiscal year, the deficit was 74.4 per cent of the budget target. 
Net tax receipts during the April-October period stood at Rs 3.34 trillion ($61.6 bln) and the total expenditure was about Rs 7.79 trillion. 
The government is aiming to keep the deficit at 5.3 per cent of GDP this fiscal year, a revision to the target of 5.1 per cent in the March 2012 budget. 
Economists forecast that the FY13 fiscal deficit will overshoot the government target of 5.3%. High current account deficit will continue to impact the rupee. 
The Gross Domestic Product (GDP) grew at 5.3% versus 5.5% in the first quarter of the current financial year. An ET Now poll had estimated a growth rate of 5.3%. The consensus estimates of the poll range between 5% to 6%. 
India's economy could gather pace in the new year, putting behind a dismal year, Goldman Sachs said in a report released on Thursday. Goldman Sachs said Indian economy is expected to expand 6.5% in 2013 thanks to an improvement in external demand and pick-up in reforms, and further accelerate to 7.2% in 2014. 
Its upbeat assessment was based on "easing financial conditions, in part driven by some reduction in policy rates, a continuation of reforms boosting confidence, and a normal agricultural crop." 
The investment bank pegged 2012 growth at 5.4% and listed a number of measures to accelerate the economy.
(Source: economictimes.indiatimes.com)

Market Heatmap, Market Synopsis: 30th November,2012

The major Indian equity benchmarks successfully ended the week with healthy gains. Markets extended its winning streak to the fourth straight trading session today. Even the Nifty convincingly closed above the 5800 mark for the second consecutive day. Moreover, India’s 2nd quarter GDP of 5.3%, being in-line with the estimates, further added to the bullish flavor. This led the Sensex to close at the level of 19339.9 i.e., up by 168.99 points and the Nifty to close at the level of 5879.85 i.e., up by 54.85 points. The midcap counters closed positive by over a percentage point while small-cap counters closed positive by over half a percentage point. On the sectoral front, except for Auto, FMCG & Realty indices, all the other indices closed in green. Metal & Power indices closed as the major gainers with gains of over two percentage & one and a half percentage points respectively. Further, the market breadth closed positive as five stocks were seen advancing for every three declines.

Find out more http://www.facebook.com/bmawealth/app_206541889369118

Commodity Market update (Copper)

Precious metals are trading flat on COMEX with Gold futures at $1728.90, up by a dollar or 0.10% while Silver is trading slightly negative at $34.28, down by 0.20% or 6 cents. Base metals are trading positive, adding to its last session’s gain. 3-month Nickel on LME is the top gainer, up by 1.38% or $234 and Copper up by 0.62% or 50 points at $7954.00. We expect base metals prices to remain positive in near term. On energy complex, Crude and Gas on NYMEX is in red. Oil prices are down by 14 cents or 0.16% to $87.93 while Gas prices are lower by 0.52% or 2 cents.

Brief History of Gold: Lydian and Chinese Civilisation

BMA Success Mantra: 30th November, 2012

Market update, Morning Summary: 30th November, 2012

 

The major Indian equity benchmarks had started the day on a bullish note and the same momentum is seen being carried forward till now. President Barack Obama's confidence that a budget deal will be reached before Christmas to avoid the looming "fiscal cliff" has provided the much lacking boost to the market. The Sensex is currently trading near the level of 19240 i.e., up by nearly 70 points & the Nifty is trading near the level of 5840 i.e., up by nearly 15 point. The midcap counters are trading positive by nearly a percentage point while small-cap counters are trading positive by over half a percentage point. On the sectoral front, except for FMCG & Auto indices, all the other indices are trading in green. Metal index is leading the list of gainers with gains of nearly two percentage point. Further, the market breadth is positive as two stocks are seen advancing for every one decline.

(pic source: bseindia.com) 

News Hour: Private banks continue to fare better than Public banks in Q2

The banking sector continued to face pressure in the second quarter of the current fiscal in line with the previous two quarters. High inflation coupled with high interest rates and slowdown in the global economy has affected the consumers and industry alike. This has lead to worsening asset quality, rising bad loans and margin compression putting banks under pressure. However, Private Banks have continued to perform better than Public banks showing effective management in containing quality and prudent lending policies.
The deteriorating asset quality continued for the banking sector mostly PSBs due to low demand and high interest rates resulting in higher slippages and restructuring. The total bad assets (gross) of public sector banks (PSBs) was Rs. 1,41,000 crore or 3.25% of total advances in the quarter ended September as against Rs. 1,23,000crore in Q1FY13. On the other hand, private banks reported a marginal jump of 22 basis points to Rs. 20,800 crore in Q2FY13 as compared to INR 19,900 crore in the June Quarter. The difference stemmed from the prudent lending practices of private banks.
The net interest margin-difference between yield on advances and cost of deposits reduced more for PSBs as compared to the private banks. On an average, the margins compressed by 40 basis points to 2.83 in Q2FY13 compared to a year ago period for the PSBs. The margins for private banks remained flat at 3.33%. The main reason for this is that higher slippages for PSBs resulted in interest income reversals lowering yields. Also, decrease in lending rates to spur growth and focus on low yielding retail loans in the absence of corporate demand affected margins.
In the absence of a rate cut and the challenging economic environment, fresh slippages and restructuring are going to continue in the next two quarters further deteriorating asset quality and putting profitability under strain. However, if an interest rate cut happens in the January quarter, there might be a marginal improvement in the repaying capacity of corporates thereby improving asset quality. But significant improvements in asset quality will be seen only in the first quarter of next year.

(source: economictimes.indiatimes.com)

Market Synopsis, Market Heatmap: 29th November, 2012

The November F&O series finished on a fantastic note. It was a day where long rollovers in the high beta sectors lifted the markets to hit the highest level in the calendar year 2012. While, some heavy short covering towards the end of the session saw the Nifty to close above the 5800 mark for the first time in the year. Even the Sensex breached the 19,000 levels for the first time in nearly two-m

onths on expectations that the government would be able to push through economic reforms. Adding to the bullish flavor, credit rating agency Moody’s too said the outlook on India rating was stable. This led the Sensex to close at the level of 19170.91 i.e., up by 328.83 points and the Nifty to close at the level of 5825 i.e., up by 97.55 points. The midcap counters closed positive by over a percentage point while small-cap counters closed positive by nearly half a percentage point. On the sectoral front, except for IT & Teck indices, all the other indices closed in green. Realty & Bank indices closed as the major gainers with gains of over three percentage & two and a half percentage points respectively. Further, the market breadth closed positive as four stocks were seen advancing for every three declines. Find out more http://www.facebook.com/bmawealth/app_206541889369118

Commodity Market Update (Natural Gas)

Precious metals are trading slightly positive since morning after Gold futures eased more than $25 in its previous session. The actively traded Gold on CMX is higher by $6.20 or +0.36% at $1725.00 while Silver futures are also positive the near month contract, for December delivery is up by just 5 cents or 0.10% at $33.73 while domestic prices are steady as the gaining moves are restricted by the weaker rupee against the dollar which depreciated almost a percent to trade at 54.08 at the time of writing this. Base metals are trading positive three-month Copper on the LME is at $7823.00 up by 0.75%. Lead and Zinc are the top gainer, adding around 1.30% each. On energy complex, prices are trading mixed Crude futures are trading higher by 0.72% at $87.11 while Natural Gas is at $3.78, lower by 0.55% or 2cents.

Data to watch:
US Unemployment Claims
US Pending Home Sales
US Prelim GDP q/q
US Natural Gas Storage

A brief history of Gold: Egyptian Civilisation

Market Synopsis, Morning Summary: 29th November, 2012

The major Indian equity benchmarks had started the day on a bullish note and the same momentum is  being carried forward till now. The likely hood of solving the fiscal cliff issue in US and the probability of successful voting in parliament in favor of FDI in retail  in India boosted the sentiment. Today , being settlement day of derivatives, markets are expected to be volatile.  The Sensex is currently trading near the level of 19073.76 i.e., up by nearly 231 points & the Nifty is trading near the level of 5793.55 i.e., up by nearly 65 points. The midcap & small-cap counters are trading positive by nearly a half percentage point each. On the sectoral front, most of  the indices are trading in green. Realty index is leading the list of gainers with gains of nearly three percentage point. While IT and TECK are the only loosing sectors .  Further, the market breadth is positive as two stocks are seen advancing for each declining stock.

(pic source: bseindia.com)

BMA Success Mantra: 29th November, 2012

May the divine blessings be with you on Guru Nanak's Birthday..

BMA Commodity Gyaan: A brief history of Gold: Part 4.

BMA Success Mantra: 28th November, 2012

Market Synopsis, Market Heatmap: 27th November, 2012

The major Indian equity benchmarks successfully closed the day in green. It was a fantastic trading session today as the ministers made way for the Greece’s next financial-aid disbursement in December. In addition, markets further got a boost after DMK decided to back the UPA Government in Parliament on FDI in the multi-brand retail. This led the Sensex to close at the level of 18842.08 i.e., up by 305.07 points and the Nifty to close at the level of 5727.45 i.e., up by 91.55 points. The midcap & small-cap counters closed positive by nearly a percentage point each. On the sectoral front, all the indices closed in green. Realty & Consumer Durables indices closed as the major gainers with gains of over three percentage points each. Further, the market breadth closed positive as two stocks were seen advancing for every one decline. Find out more http://www.facebook.com/bmawealth/app_206541889369118

News Hour: Sensex rallies nearly 300 points on FDI hopes & cues from global peers

 
MUMBAI: Sensex closed near day's high led by gains in realty, FMCG and banks on the back of positive cues from global peers. The support of allies to the government over FDI in retail also boosted sentiment. 
The 30-share index ended at 18,831.98, up 294.97 points or 1.59 per cent. It touched a high of 18,862.70 and a low of 18,616.55 in trade today. 
The Nifty closed at 5,725.80, up 89.90 points or 1.60 per cent. The broader index touched a high of 5,733.20 and a low of 5,658 in trade today. 
The BSE Midcap Index was up 1.13 per cent and the BSE Smallcap Index moved up 0.88 per cent. 
Among the sectoral indices, the BSE Realty Index rallied 3.21 per cent, the BSE FMCG Index gained 2.19 per cent, the BSE Bankex moved 1.80 per cent higher and the BSE Metal Index was up 1.31 per cent. 
Bharti AirtelBSE 5.22 % (4.33 per cent), Sterlite IndustriesBSE 3.56 % (3.20 per cent), HDFCBSE 2.79 % (2.93 per cent), HDFC BankBSE 2.69 %(2.72 per cent) and Hindalco IndustriesBSE 2.55 %(2.60 per cent) were among the major Sensex gainers. 
Tata PowerBSE 0.05 % (0.29 per cent) and NTPCBSE -0.38 % (0.22 per cent) were the only index losers.
The market breadth was positive on the BSE with 1,701 gainers against 1,179 losers. 
(All figures are provisional)
Source: economictimes.indiatimes.com)

Commodity Market Update (Silver)

Precious metals are trading silent since morning on COMEX; the actively traded Gold futures is trading flat with no change since last closing at $1750.00 and Silver is also trading mute with a nominal change of -0.08% at $34.10. We expect prices to move range bound with a positive bias ahead of no major release from the US. Base metals are trading positive with LME 3-month Copper at $7820.00, up by $31.25 or +0.40%, traders will be looking for US Core Durable and Durable Goods Orders to find clues or intraday trading. On energy complex, Crude is trading higher by 30 cents at $88.03 and Natural Gas is at $3.73, up by 0.08%.

BMA Commodity Gyaan: A brief history of Gold: Part 3.

BMA Success Mantra: 27th November, 2012

Market Synopsis, Morning Summary: 27th November, 2012

The major Indian equity benchmarks started the day on a flat note. Moreover, the Asian indices are trading weak and cautious ahead of the US presidential polls. The Sensex is currently trading near the level of 18810 i.e., up by nearly 50 points & the Nifty is trading near the level of 5715 i.e., up by nearly 10 points. The midcap & small-cap counters are trading positive by nearly half a percentage point each. On the sectoral front, the indices are trading mixed. Realty indices are leading the list of gainers with gains of nearly one and a half percentage points while Auto index is leading the list losers with losses of nearly half a percentage point. Further, the market breadth is positive as three stocks are seen advancing for every two declines.

(pic coutesy: bseindia.com)

Market Synopsis, Market Heatmap: 26th November, 2012

The major Indian equity indices started the day, November 26, 2012 on a strong note. It remained in a range for the whole day. Thus it ended the day flat, however with some positive bias. This led the Sensex to close at the level of 18537.01  i.e., up by 30 points and the Nifty to close at the level of 5635.9 i.e., up by 10 points. The midcap & small-cap counters were in focus and indicies  closed positive by one percentage point each. On the sectoral front, Aviation sector was agog with huge activity . While TECk , IT and Consumer durables indicies gained over a percentage point, Auto and Banking stocks  indicies were loosers . However losses were pegged around one third of a percentage point. Find out more http://www.facebook.com/bmawealth/app_206541889369118

BMA: 4 years of 26/11, Mumbai attack.

Commodity Market Update (Gold)

Precious metals are trading mixed on COMEX; the actively traded Gold is trading slightly lower by $4 or 0.25% at $1747.30 while prices on domestic bourses are trading higher by half a percent at Rs.32420.00 supported by a weaker rupee. Silver is also trading silent at $33.97, ahead of euro zone meeting while we expect prices to remain positive during the evening sessions. Oil prices on international exchange (NYMEX) are trading lower by 0.50% at $87.83 and Natural Gas is sharply lower by 1.5% at $3.8430. On Base metals, prices are mixed. With exception of LME 3-month Copper all other are trading positive, however Copper is at $7745, down by 34.75 or -0.45% at the time of writing this.

BMA Commodity Gyaan: A brief history of Gold: Part 2.

BMA Success Mantras: 26th November, 2012

BMA IQ:Post your answers below..

BMA Inspiration: 'The man who lead the nation.' The story of Mahatma Gandhi.

Mohandas Karamchand Gandhi (Mahatma Gandhi) was born on October 2, 1869, into a Hindu Modh family in Porbanadar, Gujarat, India. His father, named Karamchand Gandhi, was the Chief Minister (diwan) of the city of Porbanadar. His mother, named Putlibai, was the fourth wife; the previous three wives died in childbirth. Gandhi was born into the vaishya (business caste). He was 13 years old when married Kasturbai (Ba) Makhanji, through his parents arrangement. They had four sons. Gandhi learned tolerance and non-injury to living beings from an early age. He was abstinent from meat, alcohol, and promiscuity.
Gandhi studied law at the University of Bombay for one year, then at the University College London, from which he graduated in 1891, and was admitted to the bar of England. His reading of "Civil Disobedience" by David Thoreau inspired his devotion to the principle of non-violence. He returned to Bombay and practiced law there for a year, then went to South Africa to work for an Indian firm in Natal. There Gandhi experienced racism: he was thrown off a train while holding a valid first class ticket and pushed to third class. Later he was beaten by a stagecoach driver for refusing to travel on the foot-board to make room for a European passenger. He was barred from many hotels because of his race. In 1894, Gandhi founded the Natal Indian Congress. They focused on the Indian cause and British discrimination in South Africa. In 1897, Gandhi brought his wife and children to South Africa. He was attacked by a mob of racists, who tried to lynch him. He refused to press charges on any member of the mob. Gandhi became the first non-white lawyer to be admitted to the bar in South Africa.
During the South African War, Gandhi was a stretcher barer. He organized the Indian Ambulance corps of 300 Indian volunteers and hundreds of associates to serve wounded black South Africans. He was decorated for his courage at the Battle of Spion Kop. At that time Gandhi corresponded with Leo Tolstoy and expressed his admiration of the Tolstoyan principles of non-violence. In 1906 Gandhi, for the first time, organized a non-violent resistance against the Transvaal government's registration act. He called upon his fellow Indians to defy the new law in a non-violent manner and suffer the punishment for doing so. He was jailed on many occasions along with thousands of his supporters. Peaceful Indian protests caused a public outcry and forced the South African General J. C. Smuts to negotiate a compromise with Gandhi. However, Gandhi supported the British in World War I and encouraged Indians to join the Army to defend the British Empire, in compliance with the full citizenship requirement.
Back in India, Gandhi became active in the struggle for Indian Independence. He spoke at the conventions of the Indian National Congress, becoming one of its leaders. In 1918, Gandhi opposed the increasing tax levied by the British during the devastating famine. He was arrested in Champaran, state Bihar, for organizing civil resistance of tens of thousands of landless farmers and serfs. In jail Gandhi was on a hunger strike in solidarity with the famine stricken farmers. Hundreds of thousands of his supporters gathered around the jail. Gandhi was addressed by the people as Mahatma (Great Soul) and Bapu (Father). He was released. Then he represented the farmers in negotiation with the British administration. His effort worked. The tax collection was suspended and all prisoners were released. He declared that all violence was evil after the Amritsar massacre of 379 civilians by British troops, which traumatized the Indian nation. As the leader of the Indian National Congress party Gandhi launched "Swaraj", a campaign for independence and non-cooperation with the British authorities. He urged Indians to replace British goods with their own fabrics and goods. He was imprisoned from 1922-1924, being released after an appendectomy. During that time a Swaraj party was formed by his anxious opponents; it later dissolved back into the Congress.
On New Year's Eve, December 31, 1929, the Indian National Congress unfurled it's flag of independence. Gandhi and Jawaharlal Nehru issued the Declaration of Independence on January 26, 1930. Gandhi planned to achieve stability through the secularization of India, as the only way of uniting Hindus and Muslims in one peaceful nation. The religious divide was growing under the British colonial rule, which prospered from the monopoly on the salt trade. Everyone needed salt. Gandhi wrote to the Viceroy, Lord Irwin: "If my letter makes no appeal to your heart, on the eleventh day of March I shall proceed with co-workers of the Ashram as I can take, to disregard the provisions of the Salt Laws. I regard this tax to be the most iniquitous of all from the poor man's standpoint. As the Independence movement is essentially for the poorest in the land, the beginning will be made with this evil."

From March 12 to April 6, 1930, Gandhi made the famous Satyagraha ("Satya" - truth, "Agraha" - persuasion), The Salt March to Dandi. He walked on foot to the ocean in protest against the British salt monopoly and salt tax. He led thousands of Indians on a 240 mile (400 km) march from Ashram Ahmetabad to the village of Dandi on the ocean to make their own salt. For 23 days the two-mile long procession was watched by every resident along the journey. On April 6, Gandhi raised a grain of salt and declared, "With this, I am shaking the foundations of the British Empire." Gandhi's plan worked because it appealed to people in every region, class, religion, and ethnicity. The successful campaign led to the reaction of the British government and imprisonment of over 60,000 people for making or selling salt without a tax. The British opened fire on the unarmed crowd and shot hundreds of demonstrators. Gandhi was arrested in his sleep on the night of May 4th, 1930. Eventually the British government, represented by Lord Irwin, signed the Gandhi-Irwin Pact in March 1931, agreeing to free all political prisoners. Gandhi was invited to London as the leader of the Indian National Congress, but he was disappointed with the British attempts to destroy his influence by dividing him from his followers.
Gandhi campaigned to improve the lives of the untouchables, whom he called Harijans (the children of God). He promoted equitable rights, including the right to vote in the same electorates as other castes. In 1934 Gandhi survived three attempts on his life. In 1936, he briefly resigned from the party, because his popularity was stifling the diversity of membership; ranging from communists and socialists to religious conservatives and pro-business groups. He returned to the head of the party with the Jawaharlal Nehru presidency. At the beginning of the Second World War Gandhi declared that India could not be a party to this war, unless it has independence. His "Quit India" campaign led to mass arrests on an unprecedented scale of struggle. He was arrested in Bombay (Mumbai) and was held for two years. During his captivity his wife passed away and his secretary also died. Gandhi was released in May of 1944, due to a necessary surgery. His campaign led to a release of over 100,000 political prisoners before the end of the war.
India won independence in 1947, followed by the Indo-Pakistani War of 1947, and partition of India. Gandhi said, "Before partitioning India, my body will have to be cut into two pieces." About one million people died in the bloody riots until partition was reluctantly asserted by Gandhi as the only way to stop the Civil War. He urged the Congress Party to accept partition, and launched his last "fast-into-death" campaign in Delhi, calling for a stop to all violence. Gandhi also called to give Pakistan the 550,000,000 rupees in honor of the partition agreement. He tried to prevent instability and anger against India.
Gandhi was shot three times in the chest and died while on his way to a prayer meeting, on January 30, 1948. His assassins were convicted and executed a year later. The ashes of Mahatma Gandhi were split in portions and sent to all states of India to be scattered in rivers. Part of Gandhi's ashes rest in Raj Ghat, near Delhi, India. Part of Mahatma Gandhi's ashes are at the Lake Shrine in Los Angeles.

(source: http://www.imdb.com)

News Hour: Hindustan Copper share sale raises Rs 610 crore, LIC, SBI among bigger investors

Goverment raised Rs 610 crore ($110 million) by selling 4 per cent of state-run Hindustan Copper Ltd BSE -20.00 % in a share auction on Friday, kickstarting a stalled divestment programme that is crucial to rein in a ballooning fiscal deficit. 
The auction generated bids for 38.9 million shares, stock exchange data showed. The government had offered 37.01 million shares, or 4 per cent of the company, but had the option to sell a further 51.71 million shares. 
The bids came at a weighted average price of RSs 156.81, stock exchange data showed, slightly above the Rs 155 floor price. 
The government owns 99.59 per cent of Hindustan Copper, and the limited free float had inflated the traded price of the shares. The stock fell about 20 per cent, its daily limit, on Friday to 212.95 rupees. 
State-run Life Insurance Corp of India and State Bank of India BSE -0.47 % were among the bigger buyers of shares, two sources directly involved with the process said, an indication of limited interest from private sector investors. 
Government aims to raise Rs 30,000 crore through share sales in state companies in the fiscal year ending in March, but has managed just Rs 125 crore so far, through an IPO by National Buildings Construction Corporation. Weak market conditions have deterred public issues or auctions. 
The government raised Rs 14000 crore through share sales in the previous fiscal year, less than half its Rs 40000 crore goal. 
Earlier this month, the government pushed back a decision to sell a stake in state-run National Aluminium BSE -1.31 % Co, in a deal that could have raised about $270 million. Last month, state steelmaker Rashtriya Ispat Nigam Ltd shelved an IPO due to disagreement with bankers over pricing, sources with direct knowledge of the matter said. 
The government has lined up stake sales in miner NMDC Ltd BSE -1.89 % and explorer Oil India BSE 0.56 % before Dec. 20, a government official said earlier this week. 
Axis Capital, ICICI BSE -0.74 % Securities, Kotak Securities, SBI BSE -0.47 % Capital and UBS were the lead managers for the Hindustan Copper BSE -20.00 % sale.

(source: economictimes.indiatimes.cim)

Market Synopsis, Market Heatmap: 23rd November, 2012

The major Indian equity benchmarks had started the day in red on November 23, 2012. The indices began the day's proceedings on a cautious note and the morning session saw them hovering around the breakeven mark. During midsession, selling pressure intensified across index heavyweights and pushed the indices deep into the red. However, in the last hour, market bounced back to recover some of the lo

st ground. Though this recovery was not sufficient enough to help market close in positive. While the Sensex today closed lower by 11 points at 18506.57 and the Nifty today closed lower by 1 point at 5626.6. Both the Midcap and the Small cap indices, however, bucked the trend and closed marginally into the positive. On the sectoral front, the indices closed mixed. Auto and Oil&Gas index led the list of gainers while Reality & Bank indices were led the list of losers. Further, the market breadth was negative ass only three stocks are seen advancing for every four declines.Find out morehttp://www.facebook.com/bmawealth/app_206541889369118

 

Commodity Market Update (Copper)

Precious metals are trading slightly positive on COMEX; active Gold is trading higher by 6 points at 1734 and Silver up by 10 cents at 33.45. Prices are likely to trade range bound with positive bias. Gold may face resistance around 1740 above which prices may test 1765 in near term. Base metals are trading mixed, Copper is the only metal to trade down while all other metals are slightly positive. Three month Copper on LME is at 7706.50, down by 0.24%. Metals traders will also be tracking currency market to find some hints intraday trading. On energy complex Crude oil is trading nominally lower at 87.07, down by 0.37% while Natural Gas is unchanged at 3.9030.

BMA Commodity Gyaan: 23rd November, 2012

BMA Gyaan: What is 'Earning Assets'?

BMA Success Mantra: 23rd November, 2012

News Hour: Rising oil prices to leave government fiscally challenged

India is once again staring at a dangerous concoction of a weak rupee and high international oil prices that could delay any meaningful fiscal consolidation process. The central government's tax income from the sector has declined, but the subsidy burden continues to remain high. India's petroleum sector alone reported an under-recovery of Rs 85,586 crore — around 60% to be financed by the central government — for the first six months of the current fiscal, as global oil prices stayed firm and rupee remained weak. 
Hopes for a turnaround had flared when the government took steps in September to rein in the sector's losses, accompanied with the rupee's appreciation above 52 against the US dollar and stagnation in global crude oil prices. However, things have once again worsened over the past two months. From the peak above 52 against the US dollar at end-September, the rupee has steadily fallen to below 55 at present. 
Meanwhile, crude oil prices have spiked following the unrest between Israel and Palestine. As a result, India's cost of importing a barrel of oil has moved above Rs 6,000 after a gap of two months. Under-recoveries reported by the three state run oil marketing companies (OMCs) have gone down from Rs 551 crore per day in the first fortnight of September 2012 to Rs 412 crore per day in the second fortnight of November. 
However, the average for the current quarter so far still remains at par with the July-September quarter. This means the sector's under-recovery should remain around Rs 37,000 crore in the October-December quarter in line with Rs 37,775 crore of the second quarter. It is no secret that the government is finding it difficult to compensate OMCs. For the first half of FY13, the government agreed to pay just 35% of the Rs 85,586 crore under-recovery. 
This was much lower than the typical 60% it had paid in the earlier years. Factors such as delayed divestment process due to weak capital markets and poor receipts from the recent 2G auction are compounding the problems. At a time when the industry's under-recoveries are growing, reduction of taxes has brought down the central government's income from the sector. In June 2011, the government had cut customs duty on crude oil and products and excise duty on diesel, which was restored only in September 2012. 

KEY POINTS 
India's petroleum sector alone reported an under-recovery of Rs 85,586 crore. From the peak above 52 against the US dollar at end-Sept the rupee has fallen to below 55 at present. For the first half of FY13, the government agreed to pay just 35% of the Rs 85,586 crore under-recovery India's growing petroleum consumption but stagnating production means the imports are rising. 

(source: economictimes.indiatimes.com)

Market Heatmap, Market Synopsis: 22nd November, 2012

The major Indian equity benchmarks had started the day on a flat note and is currently seen trading at similar levels. The Asian markets are seen trading in green tracking the fall in initial jobless claims in the US and a weakening of the yen against the dollar. The Sensex is currently trading near the level of 18500 i.e., up by nearly 40 points & the Nifty is trading near the level of 5630 i.e., up by nearly 15 point. The midcap & small-cap counters are trading positive by over half a percentage point each. On the sectoral front, except for IT & Oil&Gas indices, all the other indices are trading in green. PSU, Banks & Realty indices are leading the list of gainers with gains of over half a percentage point each. Further, the market breadth is positive as two stocks are seen advancing for every one decline.Find out morehttp://www.facebook.com/bmawealth/app_206541889369118

Commodity Market Update (Natural Gas)

Precious metals are trading silent at 1729.5 a troy ounce, up by a dollar or 0.07% on COMEX while silver is also trading flat but with a nominal loss of 3 cents or just 0.07% at 33.32 a troy ounce. We expect prices to trade range bound with positive bias for rest of the trading hours. On energy section, Crude Oil futures is at 87.35, unchanged since last settlement and Natural Gas is at 3.8910, lower by 0.31% on NYMEX. Base metals are trading mixed with three-month Copper and Nickel adding few points while Aluminum, Lead and Zinc are slightly lower. We expect a very light movement for the day ahead of US bank holiday in observance of Thanksgiving Day. 

BMA Loans

BMA Gyaan: What is 'Abnormal Return'?

Market Synopsis, Morning Summary: 22nd November, 2012

The major Indian equity benchmarks had started the day on a flat note and is currently seen trading at similar levels. The Asian markets are seen trading in green tracking the fall in initial jobless claims in the US and a weakening of the yen against the dollar. The Sensex is currently trading near the level of 18500 i.e., up by nearly 40 points & the Nifty is trading near the level of 5630 i.e., up by nearly 15 point. The midcap & small-cap counters are trading positive by over half a percentage point each. On the sectoral front, except for IT & Oil&Gas indices, all the other indices are trading in green. PSU, Banks & Realty indices are leading the list of gainers with gains of over half a percentage point each. Further, the market breadth is positive as two stocks are seen advancing for every one decline.

(pic courtesy: bseindia.com)

BMA Success Mantras: 22nd November, 2012

News Hour: India to receive record $70 billion remittances in 2012: World Bank

India will receive record $70 billion remittances in the year 2012, topping the list of developing countries which are expected to receive a total of $406 billion this year, the World Bank has said.
After India, China will stand second with $66 billion, followed by Mexico and the Philippines with $24 billion each, a latest report by the bank said yesterday. 
In all, worldwide remittances -- including those to high-income countries -- will reach $534 billion in 2012, according to a newly updated World Bank brief on global migration and remittances. 
Other large recipients are Nigeria ($21 billion), Egypt ($18 billion), $14 billion each for Pakistan and Bangladesh, followed by Vietnam ($9 billion) and Lebanon ($7 billion). 
Officially recorded remittance flows to developing countries are estimated to grow by 6.5 per cent over $351 billion in 2011, with India again topping the chart with $58 billion, followed by China ($57 billion), Mexico ($24 billion) and the Philippines ($23 billion). 
Worldwide remittances, including those to high-income countries, are projected to grow to $685 billion in 2015. 
According to the World Bank, remittances to developing countries are expected to rise eight per cent in 2013 and 10 per cent in 2014 to reach $534 billion in 2015. 
In its report, the World Bank notes that the true size of remittance flows, including unrecorded flows through formal and informal channels, is believed to be significantly larger. 
"Compared to private capital flows, remittance flows have shown remarkable resilience since the global financial crisis, registering only a modest fall in 2009, followed by a rapid recovery. The size of remittance flows to developing countries is now more than three times that of official development assistance," the Bank said. 
Among the developing country regions, South Asia and Middle East and North African (MENA) saw the strongest growth, driven primarily by strong economic activity in the Gulf Cooperation Council (GCC) countries. 
For South Asia, remittances in 2012 are expected to total $109 billion, an increase of 12.5 per cent over 2011. 
East Asia and Pacific region, is estimated to attract $114 billion, an increase of 7.2 per cent over 2011; while MENA is expected to receive $47 billion, an increase of 8.4 per cent over the previous year. 
Remittances to Egypt have surged since 2010, perhaps driven by increased support by migrants to their families in the face of political uncertainty or savings brought by returning migrants. 
Remittances to Latin America and Caribbean (LAC) were supported by a recovering economy and moderately improving labour market in the US, but were moderated by a weak European economy. 
As a percentage of GDP, the top recipients of remittances in 2011 were Tajikistan (47 per cent), Liberia (31 per cent), Kyrgyz Republic (29 per cent), Lesotho (27 per cent), Moldova (23 per cent), Nepal (22 per cent), and Samoa (21 per cent). 
Remittances are expected to remain flat to Europe and Central Asia and Sub-Saharan Africa regions, mainly because of the economic contractions in high-income European countries. 
Remittance flows to Europe and Central Asia are estimated at a virtually unchanged $41 billion and $31 billion to Sub-Saharan Africa this year, although both regions are projected to make a robust recovery in remittance flows in 2013.

(source: economictimes.imdiatimes.com)

Market Synopsis, Market Heatmap: 21st November, 2012

The major Indian equity benchmarks ended the day in green. The day had started on a flat note, despite positive cues coming from the global markets. Finally, after observing intraday volatility, the indices managed to close the day near the high. This led the Sensex to close at the level of 18460.38 i.e., up by 131.06 points and the Nifty to close at the level of 5614.8 i.e., up by 43.25 points. The midcap & small-cap counters closed positive. On the sectoral front, except for Power, Auto & PSU indices, all the other indices closed in green. Realty index closed as the major gainer with gains of nearly two and a half percentage points. However, the market breadth closed flat.

Find out more http://www.facebook.com/bmawealth/app_206541889369118

Commodity Market Update (Crude Oil)

Bullions are trading mixed since morning on CMX, the most actively traded Gold contract is at 1726 with no major changes at the time of writing this. Silver futures for December delivery on COMEX is slightly higher by 0.40% at 33.06, prices are likely to move in a range while traders will be eagerly waiting for the US Jobless data to be released at 7.00 PM. On energy complex, Oil futures are at 85.40, up by 0.75% and Natural Gas is trading at 3.795, down by -0.038 per mmBtu on NYMEX, The Oil and Gas traders will be looking for the inventories and storage data respectively to be released today. Base metals are trading lower across the LME with benchmark three-month Copper lower by 0.85% at 7716.50 and market participants will be eyeing at US DoL releases for finding clues for further move.

BMA Commodity Gyan (Gold Series): 21st November, 2012

BMA Gyaan: What is 'Joint Bond'?

Market Synopsis, Morning Summary: 21st November, 2012

The major Indian equity benchmarks had opened the day in green based on overseas cues. The Asian markets are also trading in green on the back of better-than-expected US housing starts data for October. The Sensex is currently trading near the level of 18410 i.e., up by nearly 82 points & the Nifty is trading near the level of 5595 i.e., up by nearly 20 point. The midcap & small-cap counters are trading positive. On the sectoral front, the indices are trading mixed. Realty & Consumer Durables indices are leading the list of gainers with gains of nearly a percentage point each while Auto index is leading the list of losers with losses of nearly half a percentage point. Further, the market breadth is positive as four stocks are seen advancing for every three declines.

(pic source: bseindia.com)

BMA Success mantra: 21st November, 2012

Commodity Market Update (Silver):

Precious Metals are trading slightly lower on CMX today; Gold I at 1733.20, down 1.2 and silver is down 4 cents to trade at 33.14. On MCX, prices are trading strong in green with Gold higher by 150 points at 31845.00 per ten grams and Silver is up 263 points at 61870.0 per kilogram. The rupee has depreciated by 6 paise against the dollar and is currently at 55.12.

Gold prices may post a decline if it fails to break above 1740.0 and we may see it move down to 1700 again over the week. Base Metals on LME are trading in red after the sharp rally posted last evening; three month Copper is down 19.0 to trade at 7762.25 per ton while Nickel is trading at 16417.0. Both metals are higher on MCX due to the rupee; the intraday bias however is negative for metals and we may see minor corrections today. Energy prices are mixed today with Crude Oil down 21 cents to 89.07 while Natural Gas is higher by almost a percent at 3.754 per mmBtu. We expect both commodities to remain in range.

Key Economic Releases: US Buildings Permits, US Housing Starts

BMA Commodity Gyaan: Coming up tomorrow..