Government plans to allow two-way fungibility of Indian depository receipts (IDR)
Friday, March 16, 2012
Thursday, March 15, 2012
Economy Survey
Economy Survey: FY12 growth to decline to 6.9% on "persistent high inflation", Survey sees slippage in budget deficit due to lower revenues, subsidies
Tuesday, March 13, 2012
Monday, March 12, 2012
Thursday, March 8, 2012
MCX to debut Friday, seen listing around Rs 1350-1400
Shares of MCX , India's largest commodity exchange, will debut on the bourses on Friday, after having got an overwhelming response
to its initial public offering priced at Rs 1032 a share. Going by
the prices being quoted in the grey market, brokers expect the stock to
list between Rs 1350-1400.
In the process, MCX will also become the first new listing to be subject to the recently introduced price discovery mechanism through a call auction in the first hour of trade. Based on the price arrived at through the call auction between 9:00 am and 10:00 am, there will be a 20% circuit filter on the stock for the rest of the session.
According to brokerage house CLSA, at Rs 1032 a share, the company is valued at 18 times estimated earnings for the current financial year, which is "reasonable" when compared to valuations of commodity bourses globally.
The massive oversubscription (54 times) meant that all investors got far too few shares than what they had bid for. This is especially true of high networth individuals, who stand to get barely seven shares for every 1000 they have bid for.
Issues which are subscribed heavily usually post handsome gains on listing day, as investors try to make up for the unfulfilled demand by buying in the open market.
A lot would also depend on what valuation investors would be willing to pay for the stock, given the cautious outlook on the market as a whole.
If the stock does jump to Rs 1400, it would trading at 24 times estimated earnings for the current financial year.
"Generally exchanges BSE and NSE are trading at a price-to-earnings of roughly 14-16 times. Considering this, MCX should get base price of Rs 1350-1400 in first hour of trading - a call auction hour," says market expert Arun Kejriwal. A base price of Rs 1400 and a circuit filter of 20% means the stock can move between Rs 1120 and Rs 1680 during the day. Kejriwal expects the share to settle around Rs 1450-1500 on listing day; so the profit for retail investor, who got 8 shares on an application for Rs 2 lakh of shares, will be Rs 3200-4000 - i.e. nearly 24% annualized return over issue price of Rs 1032.
Manish Bhatt of Prabhudas Lilladher said the listing price would be around Rs 1400-1500; so investors could go for profit booking with more than 35% returns over issue price.
After looking at subscription figures, he feels there will be good demand from institutional investors, especially the foreign players.
Investment advisor SP Tulsian expects a base price of Rs 1350 in the price discovery session and sees the stock moving between Rs 1300-1400 for the rest of the day.
Tulsian advised buying share below Rs 1300 and selling above Rs 1400
In the process, MCX will also become the first new listing to be subject to the recently introduced price discovery mechanism through a call auction in the first hour of trade. Based on the price arrived at through the call auction between 9:00 am and 10:00 am, there will be a 20% circuit filter on the stock for the rest of the session.
According to brokerage house CLSA, at Rs 1032 a share, the company is valued at 18 times estimated earnings for the current financial year, which is "reasonable" when compared to valuations of commodity bourses globally.
The massive oversubscription (54 times) meant that all investors got far too few shares than what they had bid for. This is especially true of high networth individuals, who stand to get barely seven shares for every 1000 they have bid for.
Issues which are subscribed heavily usually post handsome gains on listing day, as investors try to make up for the unfulfilled demand by buying in the open market.
A lot would also depend on what valuation investors would be willing to pay for the stock, given the cautious outlook on the market as a whole.
If the stock does jump to Rs 1400, it would trading at 24 times estimated earnings for the current financial year.
"Generally exchanges BSE and NSE are trading at a price-to-earnings of roughly 14-16 times. Considering this, MCX should get base price of Rs 1350-1400 in first hour of trading - a call auction hour," says market expert Arun Kejriwal. A base price of Rs 1400 and a circuit filter of 20% means the stock can move between Rs 1120 and Rs 1680 during the day. Kejriwal expects the share to settle around Rs 1450-1500 on listing day; so the profit for retail investor, who got 8 shares on an application for Rs 2 lakh of shares, will be Rs 3200-4000 - i.e. nearly 24% annualized return over issue price of Rs 1032.
Manish Bhatt of Prabhudas Lilladher said the listing price would be around Rs 1400-1500; so investors could go for profit booking with more than 35% returns over issue price.
After looking at subscription figures, he feels there will be good demand from institutional investors, especially the foreign players.
Investment advisor SP Tulsian expects a base price of Rs 1350 in the price discovery session and sees the stock moving between Rs 1300-1400 for the rest of the day.
Tulsian advised buying share below Rs 1300 and selling above Rs 1400
Tuesday, February 14, 2012
Thursday, February 9, 2012
YOU CAN SELL TATA STEEL AT MARKET OPENING AND MAKE PROFIT
Tata Steel posts Rs 687cr loss in Dec quarter
Tata Steel , the world's No. 7 steelmaker, posted its first quarterly net loss in more than two years, hit by higher raw material costs and weak prices in Europe.
Tata Steel reported a net loss of Rs 687 crore for its fiscal third quarter ended December, compared with a net profit of Rs 949 crore a year earlier.
After minority interest and share of associates, it reported a net loss of Rs 603 crore.
Analysts, on average, had expected a net profit of Rs 34 crore, according to a Reuters poll of 12 brokerages.
Global crude steel production hit a record high of 1.53 billion tonnes in 2011, but the pace of growth was sharply lower than the previous year as the sovereign debt crisis in Europe and slowing economic growth in top consumer China dented demand.
Shares in Tata Steel, valued at USD 8.9 billion, closed up 0.3% ahead of the results. The stock has jumped about 36% so far in 2012, compared with a nearly 15% rise in India's benchmark index.
Tata Steel , the world's No. 7 steelmaker, posted its first quarterly net loss in more than two years, hit by higher raw material costs and weak prices in Europe.
Tata Steel reported a net loss of Rs 687 crore for its fiscal third quarter ended December, compared with a net profit of Rs 949 crore a year earlier.
After minority interest and share of associates, it reported a net loss of Rs 603 crore.
Analysts, on average, had expected a net profit of Rs 34 crore, according to a Reuters poll of 12 brokerages.
Global crude steel production hit a record high of 1.53 billion tonnes in 2011, but the pace of growth was sharply lower than the previous year as the sovereign debt crisis in Europe and slowing economic growth in top consumer China dented demand.
Shares in Tata Steel, valued at USD 8.9 billion, closed up 0.3% ahead of the results. The stock has jumped about 36% so far in 2012, compared with a nearly 15% rise in India's benchmark index.
RESULTS FOR February 9, 2012
Tuesday, February 7, 2012
RESULTS FOR 08-02-2012
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