Inflation Comes @12.10%

INFLATION COMES @12.10% VS 12.34%

IIP Data

IIP DATA - Is On Sep 12 : Index of Industrial Production for July, by CSO.

9-Sept-08 Headlines

Headlines for the day

Corporate News Headline
BEML bagged a contract worth Rs. 310 mn from Railway Board for design, manufacturing, supply, and commissioning of two rakes consisting of 18 units of stainless steel AC EMU coaches. (BS)
Pratibha Industries secured an order worth Rs. 447.5 mn for design and construction of 11.5 km water supply project from Delhi Jal Board. (BS)
Ashok Leyland and Nissan signed an agreement with the state government for setting up a manufacturing facility here to roll out 1.90 lakh light-range vehicles. (BS)

Economic and Political Headline
The RBI has decided to increase the cap on advance remittances up to USD 500,000 without a bank guarantee, against the previous limit of USD 100,000 towards the import of services. (ET)
The Foreign banks are expecting that new RBI governor, Mr. D Subbarao would give them more leeway in picking up stakes in local private sector banks next year. (ET)
In its most dramatic market intervention in years, the US government seized two of the nation´s largest financial companies, taking direct responsibility for firms that provide funding for around three-quarters of new home mortgages. (WSJ)

Aviva Life to expand network, aiming for higher marketshare

Aviva Life to expand network, aiming for higher marketshare
In a bid to enhance its footprint in the country, Aviva Life Insurance India plans to add around 60 more branches by next year, taking its network strength to 280, a top official of the company said.
"We will be increasing our branch strength to 280 from the current 219 by the next calender year which would help us to enhance our presence in the country," Aviva India Managing Director and CEO Bert Paterson said. The company was aiming to up its marketshare and having a bigger all-India presence would help it in its endeavour, Paterson said.
In the current year, the company has already launched around six new products, he said adding that a few more products were in the pipeline which would be launched after obtaining regulatory approvals.

"We have already lined up some new products for launch in the market. We have applied to the IRDA and are now awaiting its approval," Paterson said.
"Till date, we have recorded a growth of over 53 per cent and are aiming for an aggressive growth this year," he said.
The company would concentrate on its core business of life insurance and has no short-term or mid-term plan to enter the general insurance segment, he said.
"In India, general insurance is unprofitable. Besides, competition is intense and hence we have no immediate plans to enter the general insurance business," he said.
Within the Asia-Pacific region, India contributes 40 per cent to the group's overall revenue in retail life insurance, he said. The company's most profitable product in the country was Unit Linked Insurance Plans (ULIPS) which contributes over 95 per cent to the total revenue, he said.

TPAs eye tier-2 cities to catch with insurance market growth

TPAs eye tier-2 cities to catch with insurance market growth
Seeking to catch up with the accelerating growth in number of lives being covered by health insurance policies, TPAs are now eyeing the tier-two cities where industry is seeing most of its new business gains.
The third party administrators (TPAs) are organisations specialising in processing insurance claims for various entities and are normally contracted by health insurance firms and companies self-insuring its employees.

TPAs currently have an average service network of about 10 to 15 branches in the country, most of which are in state capitals. In contrast, the general insurance companies, which control nearly entire health insurance product
portfolio, are present in an average of 400 locations.
This huge disparity requires TPAs to aggressively expand their operations to meet the needs of the burgeoning health insurance market, industry experts believe.
Besides, implementation of various government-sponsored health insurance schemes such as RSBY (Rashtriya Swashthya Bima Yojana) demand enhancement of service administration capabilities from TPAs.
One of the major TPA players, MediAssist, is planning a major expansion in its tier-two cities, both in terms of
number of centres and employees, and is also looking to service various government-sponsored health insurance schemes.
"As Indian health insurance sector grows, a pan-India network with locally empowered offices is essential for a TPA to meet the dynamic requirements of customers in terms of servicing capabilities, reach and an efficient provider network," a source close to MediAssist said.
"Our Tier-II operations will place us in a distinctive position to provide comfort to the insurers, hospitals and the insuring public managed by us," he added.

Reliance MF SIPs cross 1 million mark

Reliance MF SIPs cross 1 million mark
Reliance Mutual Fund, the nation's leading mutual fund in terms of assets under management, on Thursday claimed to have crossed the one-million mark in sales of their systematic investment plans (SIPs).
"This is the first time for any mutual fund in India to have crossed this milestone in such a short span of time," said Vikrant Gugnani, CEO, Reliance Capital Asset Management Ltd.
Citing the reasons, he said, "Customers' need-based flexible investment offerings and quality service have helped us win customer confidence across the country. Systematic investment plans are simple and easy even for aam aadmi as one can start with a small amount as low as Rs 100 per month. SIPs are helping in getting first-time investors in the market and growing the overall reach of mutual funds."
Recently, Reliance Mutual Fund launched an enhanced version of the existing SIP – SIP + Insure, which gives investors insurance cover up to 360 times of the monthly investment. This added benefit is given to the investor at no extra cost.

Bharti AXA launches equity fund

Bharti AXA launches equity fund
Bharti AXA Investment Managers on Thursday launched their Equity Fund christened as Bharti AXA Equity Fund.
The new fund offer commenced on September 4 and will close on October 1. The open ended equity growth fund is benchmarked to S&P CNX Nifty Index Fund Index.
The fund seeks to generate long term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities including equity derivatives.
65 – 100 per cent of assets will be allocated in equity and equity related securities while debt & money market securities/instruments will constitute 0 – 35 per cent. Investments in derivative instruments shall not exceed 50 per cent of net assets of the portfolio. No investments will be made in securitized debt.
The issue price for the scheme is Rs. 10 per unit plus applicable load during NFO period. An investor can begin investment with a minimum investment Rs. 5,000 for retail and eco plan and Rs. 5 crore for institutional plan.

The scheme comes with three unique features – quarterly dividend plan, eco plan and daily systematic investment plan. Under each of these plans, the options available are growth, bonus and regular dividend and quarterly dividend plan – offering dividend re-investment and dividend pay-out facilities.
Quarterly dividend enables investors to earn regular income without having to monitor the investment and redeem any units. Eco plan is offered to investors to receive all communications by e-mail instead of physical mode like courier/post. This option is available to all investors for a maximum investment of up to Rs.2 lakhs per transaction. The expense ratio of the eco plan will be reduced by 0.25% p.a. in comparison to the regular plan.
For the first time in the Indian Mutual Fund Industry, Bharti AXA Equity Fund offers investors the option of a daily SIP. Interestingly, investors can also opt for a daily systematic transfer plan by investing a lump sum in Bharti AXA Liquid Fund and transferring a specified amount to Bharti AXA Equity Fund on a daily basis. Minimum instalment for daily SIP/STP is Rs.300 and in multiples of Rs.100 thereafter. The minimum investment instalment amount for the monthly SIP/STP is Rs.1, 000.
"The markets have seen downside for quite a while now and we believe that there is enough opportunity available in the market at attractive valuations. A long-term investment bet in a core fund at this point will be a good proposition for retail investors," said Prateek Agarwal, head – equity, Bharti AXA AM

ICICI Lombard to offer product for natural calamities

ICICI Lombard to offer product for natural calamities
Private insurer ICICI Lombard has said that it is in the process of developing a product for natural calamities like the floods in Bihar.

"For the situations like Bihar floods, we will soon be offering catastrophe products. We are in the process of developing the same," Pranav Prashad, Head-Rural Vertical, ICICI Lombard said on Sunday.
He said for the farmers, "we do offer products like Weather Insurance, Cattle Insurance and Health Insurance". These policies cover a certain amount of financial losses suffered by the subscriber.
On the market size of the rural insurance sector and the share of ICICI Lombard, Prashad said, "We are pioneers in offering insurance products for the rural masses in India. This is part of the company's focus of financial inclusion and reaching out to the socio-economically challenged as well as those located in the remote areas of the country."
He further said general insurance contributes only 0.6 per cent of the country's GDP. "This effectively means that the benefits of insurance services are yet to reach the majority of the country's population. As India's leading private sector general insurance company, our effort is to raise its GDP contribution to over 1 per cent".

Rs 1200 crore shopping mall project planned

Rs 1200 crore shopping mall project planned
The UAE based Emke Group is setting up India's 'biggest' shopping mall, including a 300 room hotel, at a Rs 1200 crore investment at Kochi which is expected to be ready by 2010, a top company official said on Monday.
The Lulu International Shopping Mall will be spread over 17 acres of land at nearby Edapally with a built ip area of 20 lakh square feet, Yusuffali MA, Managing Director of the Shopping mall and Managing Director of the Emke group told a press meet here.
Depending on the success of the project, similar malls would be planned in other states as well, he said.
Describing it as a ''dream project'', he said the plan is not only to build just a shopping mall but a landmark destination for both residents and tourists alike. The facilities, brands, services, architecture, amentities would be comparable to the best in the world, he said.
The mall will have parking space for more than 3000 vehicles.
The project is being built as per the best international specifications by world renowned consultants W S Atkins of UK and will house over 300 national and international brands of fashion, jewellery, electronics, life style, home furnishing, furniture and accessories, book shops and footwear. Seven theatre multiplex, family amusement centre with bowling alley, six restaurants, a 50,000 square feet food court with 18 outlets and coffee shops are also being planned.
The project also includes a 300 room five star hotel and a commercial tower exclusively for the Airlines and Aviation sector.An agreement has already been signed with the world renowned Marriot Hotels for the management of the five star hotel. This is the first of its kind speciality commercial space in the region and is sure to complement the tremendous growth taking place in this sector, he said.

Citi fights bid to cap credit card interest

Citi fights bid to cap credit card interest
All credit card users should make a mental note of a case that has come up before the Supreme Court. The verdict the apex court gives will decide the interest consumers have to pay on card outstandings.
Citibank NA has moved the Supreme Court, challenging an order of the National Consumer Disputes Redressal Commission, which restrained the bank from charging an interest rate of over 30 per cent a year to credit card holders who fail to make full payment on the due date.
A bench comprising Justice BN Agrawal and Justice GS Singhvi on Friday said that the matter will be heard on September 8. The court refused to hear the plea of the bank on an urgent basis.
The matter, which relates to a balancing of consumer protection and regulatory powers, assumes importance given the fierce growth of credit card use, overspending and delinquency in recent years. Notably, similar issues had resulted in new legislations in advanced markets.

In an appeal filed through counsel RS Suri, Citibank said that such capping of rates of interest on credit card payment was contrary to RBI policy. The US-based bank pointed out that the central bank in its circular of July 23, 2008 had said that banks prescribe their respective ceiling rate of interest in respect of small-value personal loans and this would apply to credit card dues as well. RBI had clearly stated that banks were free to determine rates of interest on non-priority sector personal loans without reference to the Benchmark Prime Lending Rate (BPLR) and regardless of the size of loan.
"The imposition of an upper cap of interest to a degree turned non-priority sector lending to priority sector lending," said Citibank. Further, "the commission failed to appreciate that the market in India is still at a developing stage and the risk of default is relatively high, and legal remedy has its own costs. An emerging market like India also has a high cost of acquisition and a high cost of servicing an account as compared to other mature markets," said Citibank.
It may be mentioned that in markets like the US, there are legislations like the Truth in Lending Act — which requires banks to state upfront all charges on the product — primarily to enable the consumer to shop around for the best deal. In the UK, the Fair Trade Commission, formed under the Consumer Credit Act, ensures that there is a fair deal between the consumer and the bank.

Banks argue that credit card is a transnational product and the level of interaction between the bank and customer is intensive, for which the bank engages a large workforce to facilitate customer services. For example, Citibank receives 700,000 calls per month on its helplines, in addition to about 65,000 emails and 15,000 letters per month from card holders, said the appeal.

The appellant bank also picked holes in the Commission order, which had said that the penal interest can be charged only once for one period of dafault and shall not be capitalised.
"The interest accrues on the aggregate of the outstanding due amounts for the period for which it remains due and no penal interest is levied. Capitalisation of interest connotates utilisation of the principal amount of the loan towards the payment of interest which is not the scenario that applies to credit card dues. In case of credit-card dues, credit availed of and the entire amount remaining overdue is liable to the payment of interest," said the bank.
The Commission's findings that charging of interest with monthly rates as unfair trade practice was also arbitrary, said Citibank.
"The Commission has no jurisdiction to hold that the charging by banks of interest at monthly rests was an unfair trade practice given that credit card dues are unsecured and of indeterminate tenor, and the levying of interest at monthly rests is in any event harmonious with the monthly billing and payment cycles. When the billing and payment cycles are monthly, it is also of no benefit to the credit card user to pay accredited interest at rests that are not synchronized with the billing and payment cycles," said Citibank. On July 7, 2008, the Commission had passed the order following a complaint by a credit card holder.

LIC may launch credit card next month

LIC may launch credit card next month
Life Insurance Corp (LIC) may launch its credit card in October, according to its Senior Divisional Manager Bhausaheb Gujar.
LIC is in the process of finalising the partner and in all probablity it would be introduced next month, he said told reporters here.
The insurance giant is also in the process of completing formalities for accepting its premium through credit cards, Gujar said.
LIC has already roped in Corporation bank and Axis Bank for accepting premiums from those holding accounts there.

StanChart unveils single card for debit, credit transactions

StanChart unveils single card for debit, credit transactions
Customers who until now had to keep two separate cards — credit and debit card in their wallets — can now manage with a single card. Standard Chartered has launched a new card which will provide the customer the choice of the same plastic as a credit card or a debit card. Other banks are also looking at similar products. There are close to 27 million credit cards and 110 million debit cards now. Most banks have been pushing debit cards to their customers by converting their ATM cards to debit cards.
In the case of StanChart, the technology of using the card as a debit or credit cards doesn't rest on the card. It works on the back-end technology of the bank. A customer while applying for the new card — '1Money' — will have to choose an option between a debit and credit card which would be the default option. After every transaction, the customer will get an SMS which would ask the customer whether he wants to use the debit or the credit card option. The customer can do the switch in a 24-hour time frame. If the customer doesn't choose the option, the transaction will be done on the default option of the card.
Internationally, the bank has launched a card, whereby a chip is embedded in the card and when the customer swipes, will give the option of a debit or a credit card. However, such a product cannot be launched in the country as the electronic data capture (EDC), terminals have not been enabled, according to Sai Narain CDK, head consumer transaction banking andstrategic initiatives, StanChart.
In the initial phase, the bank is offering the product only by invitation to its premium customers. Currently, StanChart has 1.3-million credit card customers and close to a million debit card customers. In the recent past, the bank has been concentrating on higher-end of the credit card segment. According to StanChart GM (credit cards and personal loans) RL Prasad, the delinquency in credit cards has been maintained at close to 8% for the past couple of years as against an industry average of 12-14%.

Indians not getting loans in Malaysia: Business lobby

Indians not getting loans in Malaysia: Business lobby
A business lobby of Malaysian Indians has claimed that the government financing agency Amanah Ikhtiar Malaysia (AIM) has not given loans to any of the 200 people, it had recommended for micro-financing after conducting a nationwide survey this year.
"We sent the list to AIM but to date, none of the candidates had received loans," said Malaysian Indian Business Association (MIBA) president P. Sivakumar.

Sivakumar said AIM, which was set up to help all Malaysians, should reveal how much it had disbursed to poor Indians over the last six months.
"It should be transparent by releasing the list. We want to know why AIM is not giving poor Indians a chance to benefit from its micro-financing services," he said.
The report had stated that AIM had helped 190,000 so far, disbursing RM2.6 bn in micro-financing to members, nearly all of whom were women.
Sivakumar suggested AIM set up a special board with representatives from Indian non-governmental organisations to help channel funds.
Meanwhile, AIM consultant for the Indian community, M. Sivalingam, said MIBA should send its complaints to the chairman of the AIM board.
He said AIM would entertain requests from any group or individual who required loans.

IDBI plans to sell home fin arm

IDBI plans to sell home fin arm
IDBI Bank is planning to sell its Pune-based wholly-owned subsidiary, IDBI Homefinance (IHFL), according to a person familiar with the development. A proposal to sell the home finance subsidiary is expected to be taken up by the board of IDBI Bank shortly, the source said. The book value of IHFL at the end of March 2007 was Rs 290 crore. Market watchers say the book value would have increased slightly now. The proposed sale is likely to have been prompted by a view that a separate subsidiary is not required for mortgage lending when the same business is also undertaken at IDBI Bank.
IHFL was previously Tata Home Finance. The name of the mortgage lender was changed as it was acquired by IDBI Bank in September 2003.
IHFL's home loan portfolio as on March 31, 2008 was Rs 2,710 crore, up Rs 563 crore from a year earlier. The mortgage lender, which has 18 branches in major cities, had reported a net profit of Rs 30 crore for 2007-08.
IDBI bank is likely to give the mandate to IDBI Capital Market Services for finding a suitor. When contacted, a senior official of IDBI Bank said, "We are examining various options. We have still not made up our mind."
Recently, Melwyn Rego who was heading IHFL was transferred back to the bank's domestic resources development (DRD) department. MH Kulkarni has now taken over as the MD & CEO of IHFL.
Interestingly, Tata Capital, the latest entrant in the home loan segment,will be shortly filing its application with the National Housing Board to start its housing finance business.

Home A-Loan? It’s a party out there

Home A-Loan? It’s a party out there
Even rising inflation has failed to defer the great Indian middle-class’ aspirations of buying their dream home. Surprising it may seem, but despite the slowdown in the economy, the home loan segment is alive and kicking with possibilities.
According to industry estimates, the home loan market witnessed an average growth of 20-25% in August, thanks to small-ticket buying. And with festive season around the corner, housing finance companies are gearing up to meet an increased demand as they expect real estate developers to dole out huge discounts to lure first-time buyers.
Banks across the board confirmed that they have witnessed a considerable increase in the number of queries from people seeking home loans. “These are typically the ones who are looking to buy residential property in the festive season. They have already been assured by real estate developers of a good discount, and are making now sure that they get their documents ready in time,†a senior banker explaining the phenomenon said.
It should be mentioned that the Reserve Bank of India hiked the cash reserve ratio (CRR) from 8.75% to 9% in the first week of August. Deepak Parekh, chairman of HDFC, the country’s largest housing finance company, believes that with the great Indian middle-class kicking in, home loan market should be able to weather the storms of a slowing economy. “We has seen a growth of 22% in the home loan segment in August, vis-à -vis the year-ago period. People are waiting for monsoons to get over. Already, there’s been an increase in the number of queries for home loans. We expect the market to pick up significantly in October when festivities begin,†Parkekh told SundayET. Mr Parkekh’s optimism is visible in growth numbers. For the April-July period, HDFC saw a 28% growth in the home loan segment. The company’s average loan size this year has been Rs 15 lakh and 95% of the borrowers were salaried employees.
Says Rohtas Goel, CMD of Omaxe Group: “The hike in repo and CRR rate has impacted the demand in the residential market. But this does not change the fact that people need homes and opportunities to invest. It only results in people buying smaller homes in less-preferred locations, which is what’s happening now.â€

RNA to redevelop large Chembur housing colony

RNA to redevelop large Chembur housing colony
Mumbai-based property developer RNA has bagged a Rs 1,000-crore project to redevelop Subhash Nagar Colony, one of the oldest and biggest settlements in Chembur. The project involves reconstruction of 57 buildings built by the Maharashtra Housing and Development Authority in 1950. The colony is spread over 40 acres and each building has 36 flats.
On completion of the project, tenants will be rehoused in flats admeasuring 320 sq ft, with 65 sq ft of open space. RNA has already begun work on the project and has given transit accommodation to tenants in five buildings.
Learning Center- http://learning.investorline.co.in/
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Redevelopment of the city's old buildings is a big business opportunity as the government is encouraging realtors with tax incentives and higher floor space index. The city has some 16,000 buildings that qualify for redevelopment.
Under the redevelopment scheme, old and dilapidated buildings are knocked down to construct taller residential buildings and create more space for commercial activities, thereby boosting returns on investment.
"To support development of this scale, the company has undertaken extensive infrastructure enhancement, like setting up drainage and sewerage systems, underground water lines, recreation grounds, playgrounds and internal roads," RNA vice president Manoj John said.
He claimed that the tenants need not pay maintenance costs as the company has taken care of it. "We have opened a fixed deposit account, which generates substantial monthly interest. This amount is big enough to take care of maintenance and other costs that normally are borne by the society," Mr John said.
Over the past 10 years, RNA has developed 15.5 million sq ft. It now has as much as 12 million sq ft under development across residential, commercial and SEZ sectors.

Headlines for the day 4-Sept-08

Headlines for the day

Corporate News Headline
NMDC would invest about Rs. 120 bn to set up an integrated steel plant in Chhattisgarh with an annual capacity of 3 MT. (BS)
Tata Motors was looking for alternate options to manufacture its small car Nano from the company´s other plants and work at Singur has been suspended. (ET)
BHEL is planning to set up a greenfield project for manufacturing locomotives. (BS)

Economic and Political Headline
After the launch of currency futures in the country, the market regulator SEBI has said that it is mulling introduction of Rupee- Yen and Rupee-Euro futures. (BS)
Belying fears of an economic slowdown, the direct tax collections have gone up by 38.3% in the first five months of the current fiscal at Rs. 844.09 bn, compared to Rs. 610.30 bn in a year-ago period. (ET)
The orders for manufactured goods in the US increased 1.3% in July, following a revised 2.1% increase in June, and a barometer of capital spending by businesses surged. (WSJ)

U.S. Productivity (Q2) & Jobless claims

U.S. Productivity (Q2): Act 4.3 ; Exp3.50; Prior2.20 (-ve)
U.S. Jobless claims: Act 444; Exp425; Prior425 (+Ve)
Negative for Precious metals…Productivity is important

Gail India Ltd

Gail India Ltd has informed BSE that for issuance of one bonus share for two equity shares held, the 'Record Date', has been fixed for October 07, 2008. The proposal has also been approved by the Shareholders in their meeting held on September 04, 2008

European Central Bank kept prime lending rate unchanged at 4.25%

European Central Bank kept prime lending rate unchanged at 4.25%

Commodity trade near 5-month low

Commodity trade near 5-month low, oil leads the pack

GAIL appoves Bonus Shares 1:2 basis

GAIL appoves Bonus Shares 1:2 basis

Bank of England kept rate unchanged at 5.0%

Bank of England kept rate unchanged at 5.0%

what are different types of debt instruments?

While searching for investment products which is aimed at capital protection and fixed returns, we turn our attention to various debt products available for investment. Let us go through some of them which is not very familiar with the normal investor community.You can see the following categories in the portfolio of almost all debt mutual funds.

1. Central Govt Securities - These are the most safest debt investment that one can make. They don have any default in payments.Even in case of bad situations, the government can print currency and payback the investment to the investors.

2. State Govt Securities - These are provided by respective state government and are less liquid compared to central govt securities. It has a higher yield than central govt securities and it may default on payment but in history it has never happened.

3. Public sector bonds - These are issued by public sector undertakings who borrow funds from the markets in terms of bonds.

4. Domestic Financial Institutaion bonds - These are provided by financial institutions like IDBI,ICICI and these are unsecured bonds.

5. Corporate Debentures - Private sector companies raise fund from investors through corporate debentures.

6. Commercial Paper - Private companies meet short term(1-6 months) fund requirements through commercial paper.

7. Certificates of Deposit - These are issued by banks and financial institutions.

Apart from these , there are other common products such as kisan vikas patra(money doubles in 8 years 7 months),NSC,Post office Deposits,Senior citizen scheme in post office,GOI bonds,PPF and Bank FDs.

All those trading in Resurgere -New Scrip listed in NSE-Warning!!

Dear All,

This scrip seems to be a killer scrip. Delivery volumes are abysmal at 2-3% and the traded volumes in both the exchanges are above 2crores share on an average.I am told that this issue bombed in the IPO and subscription was less than 10% and it got closed simply by someone bailing out and the moves of the scrip shows that what was not subscribed is being palmed off at an exorbitant price. I don't really know why SEBI or NSE or BSE(Of KGN Fame!!) are sitting quiet watching the price manipulation in its most blatant format?! Only aftre the horses have bolted they will come in to close the doors it seems to me.

I only request all readers to be discerning and not get sucked into the frenzy and then regret losing money. Though I called correctly on both the days with correct stoplosses for buy as well as sell positions I am really afraid of such shares reminding me of a share called Rupangi Impex.

Better guard yourself- I see no more than the delivery days of Thursday and Friday(Auction Day) for this share to be active.

NSE has very recently seen shares such as Firstwin,Gwalior Chem,Vishal Info,VinCards(restructured) killing a lot of people. My advicw will be unless a share trades for sa decent period of time - say 30-45 days- any one to speculate is only suicidal. I have been told that many clients had put in Preopen Mkt "SELL" orders on Resurgere on Monday-What is the basis?? I am stunned by such ill informed trading pattern.

Another issue had been Ranbaxy in which a lot of people took positions in Sep longs. Looks like the down period for Ranbaxy may be coming to an end with the Open Offer being over. Lets hope things return to normalcy at least hereafter!!

How to calculate your cash flow statement?

Lets us now get to know how to improve your net worth. One of the tool that can be used to improve your net worth is your cash flow statement.

Cashflow statement is nothing but a measure of how much money is coming in and how much money is being spent by you.Lets start creating your cashflow statement by doing the following steps.

1. List down all your incomes. Identify all your source of incomes like monthly income,dividends,rental income and other sources.List down the monthly income and also list down the annual estimate of your income from each source.

2.List down all your expenses which may include credit card payments,rent/emi,grocery expenses,children's fees.

3. Calculate your cash flow by

Cashflow = Income - Expenses

After arriving at your cash flow, check if the cashflow is positive or negative. Lets see how to read/analyse cashflow statement.

4. Cashflow analysis

a) Look out ways to increase your income. Check if your hobby or your skill set can generate a significant income.

b) Check if you could reduce your expenses. Classify the expenses as necessary and unessential ones. Try to reduce the unessential expenses if possible.

c) Try to reduce your debt component and try to reduce taxes by investing in tax instruments.

Cashflow is directly proportional to the net worth and hence start creating your monthly cash flow statement and track them regularly to increase your net worth which would in term let you give you leeway for investments.

NEWS:- ECB, BoE expected to leave interest rates steady

NEWS:- ECB, BoE expected to leave interest rates steady

inflation will be 12.2

inflation will be 12.2

Oil And Stocks: The "Correlation" Breaks Down? When oil goes down, do stocks go really go up?

Oil And Stocks: The "Correlation" Breaks Down?
When oil goes down, do stocks go really go up?

September 2 was the first day of trading after the long Labor Day weekend, and the DJIA opened with a sharp gap up.

That same morning, crude oil started the day with a sharp drop.

So what, you ask? Isn't that how it's supposed to be – when oil goes down, stocks go up? Market analysts repeat this "rule of thumb" every day, in print and on TV – so it must be true.

They do, indeed. But does saying it make it so? Consider this:

"Most pundits were talking mainly about oil this morning [Sept. 2], which was extremely volatile. They tried to explain the strongly higher stock market open by the fact that oil prices were down big. By the end of today's session very few market observers talked about oil and stocks together.

"The reason: both ended today's market session DOWN, once again showing that the supposed negative correlation between the two asset classes is ephemeral (see Stocks and Oil chart on p.6 of the September Elliott Wave Financial Forecast). If these trends continue, pretty soon pundits will be trying to make the case that lower oil is BEARISH for stock prices. Just wait."

– Elliott Wave International, Short Term Update, Tuesday, September 2, 2008, 4:30 PM Eastern.

"Just wait," indeed. If oil drops below $100 (a scenario EWI's Energy Specialty Service considers highly probable), can you imagine news headline like these, for example?

"Stocks Fall As Continued Declines In Crude Indicate Slowing Consumer Demand"

Or,

"Shares of Energy Companies Drag Stocks Down"

Resurgere Mines & Minerals India Limited final bid detail

Resurgere Mines & Minerals India Limited final bid detail
Published 8/13/2008 9:23:00 AM - IPO News


Hi Friends,
Resurgere Mines & Minerals India Limited IPO oversubscribed by 1.16 times. Non Institutional category oversubscribed around 2.4129 times while Qualified Institutional Buyers (QIBs) quota subscribed 1.3401 times.
Retail Individual Investors (RIIs) category oversubscribed 0.3967 times and Employees category oversubscribed 1.0004 times.
Resurgere Mines & Minerals India Limited - Bid details
Sr.No.CategoryNo.of shares offered/reservedNo. of shares bid forNo. of times of total meant for the category
1Qualified Institutional Buyers (QIBs)252000033771201.3401
1(a)Foreign Institutional Investors (FIIs) 2914360
1(b)Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) 360
1(c)Mutual Funds 12400
1(d)Others 450000
2Non Institutional Investors42000010134002.4129
2(a)Corporates 831800
2(b)Individuals (Other than RIIs) 177920
2(c)Others 3680
3Retail Individual Investors (RIIs)12600004998000.3967
3(a)Cut Off 409480
3(b)Price Bids 90320
4Employee Reservation2500002501001.0004
4(a)Cut Off 100
4(b)Price Bids 250000

NEW LISTING:: AUSTRAL COKE & PROJECTS LTD

NEW LISTING:: AUSTRAL COKE & PROJECTS LTD

Brand Bengal stands to lose Rs 80,000cr

Source-TIMES NEWS NETWORK

Kolkata: If the Tatas go, they will take with them almost everything that matters to Brand Bengal. Image and the big bucks. The first entity doesn't carry a price tag but the second one does: a whopping Rs 80,000 crore in investments.
The immediate loss will be over Rs 5,000 crore, including the investments on the ancillary units in Singur. The list would also include tier-II vendors, who will have no reason to be here once Ratan Tata moves out.
What's more, the Tata brands like Tata Realty Infrastructure, Tata Metaliks and Maithon Power Limited might also take flight, amounting to a loss of at least Rs 10,000 crore. Besides, there are other bigtime investors who are already jittery. Bharat Forge, which had decided to invest big time in Bengal largely because of the Nano plant in Singur, is now in two minds.
The company would have brought in Rs 6,500 crore. This top-of-the-line forging company had signed an MoU with the government earlier this year. Ever since trouble erupted in Singur, their response to the state industries department is: We'll get back.
Brand Bengal had attracted investment announcements of Rs 1,27,302 crore since the third quarter of the last financial year. But this target is now a distant dream.
In case of a Tata pullout, there will be a question mark on the investment from nonferrous metal major Vedanta Group. That will be another Rs 16,000 crore gone.
Then, there are steel majors who would have implemented their projects this year, but are apprehensive now. All these steel majors, including Adhunik (Rs 5,000 crore), Shyam Steel (Rs 8,000 crore), Jay Balaji (Rs 16,500 crore), Bhushan Steel (Rs 4,000 crore), Abhijit Group (Rs 8,000 crore) may not be all that keen to invest.
''None of these steel majors will stay on, once the Tatas go,'' an industries department official said. ''These investments had come after sheer hard work. We had also roped in other automobile majors. Two months ago, they were ready to start work. Now, they are saying they would rather wait and watch,'' he added.