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Showing posts from August 3, 2008

Gold ETFs post negative returns for first time this year

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Tania Kishore Jaleel Mumbai, Aug. 8 Listed gold exchange-traded funds (ETF) posted negative returns for the first time this year, sliding 6.95 per cent in July.At this level, the average returns of the five listed gold ETFs makes them the worst performing category for the month, according to data available on the Value Research Web site.Share prices of the gold ETFs dropped between seven and eight per cent in July. Marketmen attribute this to the fall in the price of gold which has declined seven per cent in the last one month and is now quoting at Rs 12,060 per 10 grams. "The gold ETFs are benchmarked against the price of gold. The returns were slightly negative in the past month as the price of spot gold dipped. The appreciation of the dollar and the drop in crude oil prices have resulted in this fall in gold," explained Mr Devendra Nevgi, CEO & CIO at Quantum Asset Management. Though the gold ETF returns were negative last month, managers in charge of these…

Tata Teleservices to invest $2 bn in GSM service

AGRA: Tata Teleservices on Saturday said it would invest $2 billion (over Rs 8,000 crore) in rolling out Global System for Mobile (GSM) based mobile services in the country. The company, which currently offers mobile services on CDMA platform, is planni ng to launch the service by the end of the year, but is concerned about the slow pace of spectrum allocation by the government. Speaking to PTI, Tata Teleservices Managing Director, Mr Anil Sardana said, "Over the next two years, the company will be putting in $2 billion for setting up nationwide GSM network. We are rolling out the network very quickly wherever we have been given spectrum so far.'' The company has received spectrum in five circles even though it had applied for a pan-India allocation. He said the delay in allocation in other circles was putting the company at "competitive disadvantage'' as its arch-rival Reliance Communications has already done a soft launch of GSM services last we…

Inflation breaches 12% mark

Price worries Primary articles, including fruits, milk, spices, and eggs, meat and fish led the surgeIn manufactured products, iron and steel and edible oil were the major contributorsOur Bureau New Delhi, Aug. 7 Annual inflation, measured by the Wholesale Price Index, accelerated to 12.01 in the week ended July 26, the highest since April 1, 1995 and marginally above the 11.98 per cent annual increase in the previous reported week.The surge in inflation was on account of surging primary articles, including fruits, milk, spices, and eggs, meat and fish, as well as mineral oils and iron and steel groups, official data released on Thursday showed. The rise came a week after the Reserve Bank of India hiked its key short-term lending rate by a higher-than-expected half-a-percentage point and also raised the percentage of cash commercial banks must park with it in a bid to subdue spiralling inflation and curtail credit growth. The RBI has said it hopes to bring down inflation to…

Govt may go ahead with BSNL IPO plan despite union protest

Sops for employees The Ministry has offered to give the 3.5 lakh employees 500 shares each at Rs 10Each employee stands to gain Rs 1.5 lakh from day 1 of listing The co plans to offload 10% equity to raise around $10 billionOur Bureau New Delhi, Aug. 7 Despite opposition from the company's employees union, the Government seems to be moving ahead on its plans to list State-owned telecom company Bharat Sanchar Nigam Ltd. The Communications Minister, Mr A. Raja, on Thursday said that BSNL may be listed on the bourses in the price range of Rs 300-400 a share. While BSNL's management said that the listing could happen within the next six months, all efforts are now being made to garner the union's support. The Ministry has offered to give the 3.5 lakh BSNL employees 500 shares each at Rs 10. In a meeting with the union leaders, Mr Raja said that each employee stands to gain Rs 1.5 lakh from day one of the shares being listed. The company is planning to offload 10 per …

credit suisse--upgrades india to buy

India's Real Estate companies and Banks will become major players in the rally that's beginning to take shape, while mineral exporters like Sesa Goa and NMDC become "Sells". As overcapacity in Steel becomes apparent in China over the next three months, India could become a favoured destination for dumping of Steel products (zero duty imports), while local manufacturers which are banned from exporting steel, and have to pay higher duties on iron ore would stand compromised. In such a scenario, we would advise investors to move into global steel players like Tata Steel-Corus over domestic steel plays. We believe, as risk aversion takes a backstep, aggressive growth will come to the front with Real Estate, Construction and Banking in front (All domestic, non China plays), while Consumer Staples and Pharma go into a slumber. Today, we are downgrading Indonesia in order to upgrade India. There are two key reasons for this move. The first is a switch from Indonesia, a commod…

Govt subsidy benefits fertiliser stocks

Fertiliser stocks were in demand on reports the government has paid about Rs 28000 crore as subsidies to fertiliser producers till July-end and plans to pay Rs 8000 crore per month until February 2009. National Fertilizer (up 2.89% at Rs 58.75), Nagarjuna Fertilizers and Chemicals (up 2.25% at Rs 40.85), Chambal Fertilizers and Chemicals (up 1.84% at Rs 80.20), GSFC (up 1.64% at Rs 164.05), and RCF (up 1.19% at Rs 68), rose. According to reports, the fertiliser ministry is expecting that the amount will be mostly paid in cash. The subsidy burden has reportedly shot up to Rs 1,20,000 crore but the government has sanctioned only Rs 31,000 crore in the Union Budget 2008-09. The ministry of chemicals and fertilisers had earlier expected fertiliser subsidy burden at Rs 95,000 crore for the current year, more than double than the last year's figure of Rs 45,000 crore. The reports quoted Union fertiliser secretary Atul Chaturvedi as saying that the government will even rele…

Acquisition powers ICSA India

ICSA India was locked at upper limit of 5% at Rs 377 at 14:08 IST on BSE after the firm signed a deal with ECE Industries to buy the latter's machineries and equipment along with available drawings, designs and data. The company made the announcement during market hours today, 6 August 2008. On BSE, 1.67 lakh shares were traded in the counter. The scrip had an average daily volume of 44,167 shares in the past one quarter. The stock hit a high of Rs 377.40 and a low of Rs 362.70 so far during the day. The stock had a 52-week high of Rs 648.80 on 28 December 2007 and a 52-week low of Rs 254 on 08 July 2008. The scrip had outperformed the market over the past one month till 5 August 2008, rising 35.11% compared to the Sensex's 10.61% gain. It had, however, underperformed the market in the past one quarter, falling 19.11% compared to Sensex's 13.72% fall. The mid-cap firm has an equity capital of Rs 8.81 crore. Face value per share is Rs 2. The current price of…

How to select a company using Fundamental Analysis

this volatile market, nobody wants to have a bumpy ride and lose money in the risky instrument like equity. Caution needs to be taken and instead of going for the `tips', doing your own `homework' certainly helps. Common investors, if they invest their time in selecting the businesses, which are fundamentally strong, then they should not fret over the market movements.Here are some pointers to look at before investing in any business. 1. Income
- Look at the quarterly and yearly progress in the earnings of the company- Look at its competitors' earnings and do a comparative analysis- See whether the income is coming from its core businesses and its growing - Give attention to debt part, see whether it is shrinking or growing2. Change
- Keep an eye on any change in management, geographical focus or any new launch of product which could make/destroy the value- See what is the capital structure of the company, any change, issue of new shares, buyback 3. General Points
- …

Portfolio of Rakesh Jhunjhunwala

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Aug 06, 2008 10:16 am
For all those affiliated with the stock market, it is always fascinating to know what the other person is investing into, what are the stocks owned? Call it human nature, but its always interesting to know what the other person does, the ever inquisitive nature of mankind. So we were also a bit inquisitive and decided to take a look at the holdings of Rakesh Jhunjhunwala, one of the savviest and smart investors on Dalal Street. He is a CA by profession and his name catapulted into fame when Forbes, in 2007, ranked him as the 51st richest man in India. Son of an income tax officer, he started dabbling in stocks while in college. Rather than take a job, he plunged into investing, starting with around Rs.5000 in 1985 when the BSE Sensex was at 150; it is now over around 14,000. His privately owned stock trading firm Rare Enterprises, derives the name from f…