indian stock market

Waiving of service charges on low-cost deposits and ambitious branch expansion will help the bank improve its deposit base.       Mr R. M. Malla, CMD…The bank is cashing in on infrastructure financing. M. V. S. Santosh Kumar Fresh investments with a two-to-three year time horizon can be considered in the stock of IDBI Bank, the youngest of the public sector banks. The bank focuses mainly on infrastructure lending, a segment expected to contribute heavily to the incremental credit growth of the banking system, going forward. The recent, much-needed capital infusion from the government will help IDBI Bank support high credit growth. Higher levels of capital would also help decrease cost of funds (by reducing dependence on deposits) for the bank, thereby aiding net interest margin (NIM) expansion. High cost of funds from the time of the IDBI-IDBI Bank merger has been a drag on the bank's NIMs. IDBI Bank's relatively lower cost-income ratio and higher contribution from fee inc...

Bringing in more audience. K. Venkatasubramanian Investors with a two-year horizon can consider buying the shares of PVR, a leading multiplex operator, given the revival in the movie exhibition business, increasing average ticket price as well as occupancies. A broad-based revival in the economy, a slew of movie releases that held/hold promise and increasing consumer spends which could help augment earnings, with higher food and beverages sales, also underscore our recommendation. At Rs 173, the share trades at 13 times its likely FY-12 earnings. That is lower than its peer Inox Leisure as well as its own historic valuation levels, which also makes it an attractive bet. The multiplex industry had an extremely challenging FY-10, what with their standoff with distributors over revenue-sharing and a string of unsuccessful movies. Almost the entire first quarter of last fiscal went without any movie releases as a result of the tiff with distributors. A recovering economy ...

  Minimum public holding rule generates buying interest. Jayanta Mallick Kolkata, June 7 The announcement by the Government about the minimum public holding, by way of an amendment in the Securities Contract Act (Regulation) Rules, generated some buying interest in certain multinational companies having public holding below 25 per cent, expecting possible delisting move. According to SMC Capital, there are 22 MNC outfits listed here, which have less than 25 per cent public holding. "Considering the nature of the MNCs, their foreign parent companies may not be that willing to offload their stake or dilute control. Probably, they may choose the route of delisting," it said. According to Mr Avinash Gupta, Assistant Vice-President - Research Equity, Bonanza Portfolio Ltd, on Monday, there was buying interest in the companies where the holding of the promoter is higher than 75 per cent with pronounced purchases in case of subsidiaries of MNC's. In a note...

MUMBAI: IDBI Bank Ltd reported a net profit of Rs 318.41 crore for the fourth quarter ended March 31, 2010 as compared to Rs 313.67 crore during the corresponding quarter last year. Total income for the March quarter of 2010 has increased to Rs 4,628.45 crore from Rs 3734.50 crore in the year-ago period. For the year ended March 31, 2010, the bank has posted a net profit of Rs 1,031.13 crore (Rs 858.54 crore) on a total income of Rs 17,563.59 crore (Rs 13,021.55 crore). The board of directors of the bank at its meeting held on April 30 has recommended a dividend of Rs.3 per share. Hotmail: Trusted email with powerful SPAM protection. Sign up now.

IL&FS Transportation Networks has announced that with reference to its bid with the National Highways Authority of India (NHAI) for four-laning of Chenani-Nashri Section of NH-1A from km 89.00 to 130.00 (new alignment) of NH-1A including 9 km long tunnel (2-lane) with parallel escape tunnel in the State of Jammu & Kashmir, the company has emerged as the lowest bidder for the aforesaid project. The bids were opened on April 1, 2010. The project is on annuity basis with concession period of 20 years including a construction period of 1825 days with an estimated cost of Rs 2519 crore. The company has quoted a semi-annual annuity of Rs 317.52 crore for the project.  Your E-mail and More On-the-Go. Get Windows Live Hotmail Free. Sign up now.

If dividends and capital gains are the two components of return to an investor, how much do Indian investors value dividends? Not much, it seems. Rajalakshmi Sivam Indian investors tend to put their money on stocks more for their ability to deliver capital gains than for their yearly dividend payouts. This is also justified by the fact the Indian market as a whole doesn't deliver much of a return by way of dividend. The current dividend yield for the constituents of the Nifty index (dividends/market price) is less than 1 per cent. Nevertheless, investing for dividends does make sense for investors due to a few reasons. If last year's evidence is anything to go by, dividend payouts tend to be less volatile than company profits, which decide valuations. While the market as a whole may not sport a high dividend yield, investors can still bet on the few stocks that do. Here's an analysis of the trends in dividend payouts of Indian companies and dividend yield stocks, based on...

Fortis Healthcare jumped 3.53% to Rs 184.65 at 9:48 IST after the company said it will buy 23.9% of Singapore's Parkway Holdings from US buyout firm TPG Capital as a part of its expansion drive into Asia and the Middle East. The announcement was made before trading hours today, 12 March 2010. Meanwhile, the BSE Sensex was up 50.90 points, or 0.30%, to 17,218.86. On BSE, 17.51 lakh shares were traded in the counter as against an average daily volume of 5.87 lakh shares in the past one quarter. The stock hit a high of Rs 187.45, a record high. It hit a low of Rs 180 so far during the day. The stock had hit a 52-week low of Rs 65.60 on 17 March 2009. The stock had outperformed the market over the past one month till 11 March 2010, soaring 17.45% compared with the Sensex's 6.29% rise. It outperformed the market in past one quarter, spurting 51.46% as against 0.29% decline in the Sensex. The mid-cap healthcare chain has an equity capital of Rs 317.34 crore. Face value per...