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.