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June 14, 2010
CME Group in partnership with the National Stock Exchange of India (NSE) and Standard & Poor’s is to offer S&P CNX Nifty Futures, nearly round-the-clock trading on the CME Globex platform.The institutions now have two new ways to take part in the dynamic opportunities of the Indian stock market - E-mini and E-micro S&P CNX Nifty futures (Nifty 50 futures) which are scheduled to begin trading on Monday, July 19, 2010.

Details about the contracts :

Trading hours will be Monday-Friday, 3:30 p.m. – 3:15 p.m. the next day (except Friday, which closes at 3:15 p.m.) with a trading halt.
Sundays-Thursdays from 9:30-10:30 p.m. CDT (8:30 p.m.-9:30 p.m. CST) coinciding with the hour prior to the NSE opening.

emininifty-emicronifty

This is an interesting listing, thereby providing the Global Institutions to gain exposure to the Indian markets and also arbitrage opportunities from short-term price differences versus the Singapore SGX Nifty futures.

And will this cause any changes in NSE's Trading hours or Nifty futures trading in NSE ? One has to wait and see !
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June 06, 2010
marketstrategyGlobal markets sold off in May primarily over concerns on the ongoing developments in Eurozone. Over the past month, the DowJones and FTSE were down 8% and 7% respectively. There were significant losses on Asian indices as well with Sensex losing 3.5% . By and large, markets were not convinced that the bailout package was the end of the debt problem and feared that more Euro nations could face crisis similar to Greece.

Going by these developments how did India Inc fair?

The Indian corporate sector reported healthy numbers for the fourth quarter. 4QFY10 BSE-30 Index net profit grew a robust 25.9% yoy. The GDP growth for fourth quarter came at 8.6%, a significant improvement over corresponding quarter of the previous year.

So what's in store for Indian markets ?

From hereon, the markets would be focused on the developments on the monsoon front and of course global events. In the past ten months or so, markets have been largely range bound and have been consolidating between 15500-17600 levels. At this level, valuations are not demanding, but reasonable at 14.8X FY2011E EPS and 12.5X FY2012E EPS.

A full-blown, double-dip recession led by sovereign debt issues in Europe and the US may lead to rapid outflow of FII money from India as in 2008, which in turn could lead to a healthy correction. Currently markets are the higher band of 17000 levels and it could test the lower end of about 15500-16000 levels. Break of this lower band could take it lower to about 14000 levels.

Investors could use this global-led correction to invest in a staggered manner, with medium to long term view.
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June 03, 2010
Sensex is above 22,000 ! Surprised ?

The Total Returns Index, not known to many, is nothing but Sensex plus the total dividends announced by sensex companies which are assumed to be reinvested. Though not many are interested in dividends and are concerned about only in the rise in share prices, there is a surprise for them.

The chart below shows dividends are definitely not to be ignored. Interestingly the Total Returns Index is currently above 22,000, while the BSE Sensex is far from 21,000 achieved in Jan 2008.

sensex returns

Hence before calculating your stock returns, check out how much dividends you have received to get the exact returns. Dividends do matter.
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May 20, 2010
Standard Chartered to issue 240 m Indian Depository Receipt (IDR) which will open on 25 May 2010 and close on 28 May 2010. 10 IDRs represent one share of Standard Chartered Plc.
StanChart's IDR is the first issue of its kind in India.What are these IDRs? Like American or Global Depository Receipts, where Indian companies raise resources overseas, IDRs enable foreign companies to do the same in India.

StanChart has been operating in India for over 150 years and has over 90 branches. It has a combined customer base of around 20 lakh and the bank has operations in consumer banking, as well as private banking.

Standard Chartered is listed in London and Hong Kong stock exchanges. The price of the IDR is yet to be announced, couple of days before the issue and 5% discount is offered to retail investors. Currently Stanchart trades at 15 times current year earnings and any price of 5-10% below from current levels would be a good price to apply.

The price band is Rs.100-115, and the IDRs would be listed in NSE,BSE. At the lower end of the price band, the IDR would trade at 15 times current year earnings and it is compares favourably with private banks like ICICI Bank and HDFC Bank.

The risk factor being the currency, if Rupee appreciates IDR value will be affected.
One can apply for the issue for medium to long term and listing gains may not be substantial.
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May 19, 2010
Shriram Transport Finance is planning to raise Rs 500 crore through retail non-convertible debentures (NCDs). The company plans to raise three-year secured NCDs at 9.75%. The company had earlier come out with such an NCD issue with good success.

The issue has as been rated AA/Stable' by Crisil and 'AA+' by CARE.The bonds' coupon rate ranges between 9% and 11%.The issue is open from May 17 , for the sale of NCDs up to Rs 250 crore with a greenshoe option up to Rs 250 crore.

Details of the issue:

The face value and the issue price is Rs.1000 and the minimum application is for 10 debentures Rs.10,000. There are two options 60 months and 84 months.
1. 60 months - coupon rate 9.75% paid annually and 10.5% paid semi annually.
2. 84 months - coupon rate 10.5% annually.

The term deposit rates are in the range of 6-7% for deposits of 1 year maturity. There is a premium of about 3% in the company’s NCD offer. Hence investors can invest in this issue, if they want higher returns than their present Bank Deposits.
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May 17, 2010
If you find that you are so much overburdened with debt that you are having sleepless nights then you should start thinking about some Debt Help without making any delay. You can obviously get some professional Debt Help by opting for a Debt Consolidation Program or a Debt Management Program. But, on your own you can reduce the debt burden if you follow some simple and logical steps:

The first thing you need to do is to have a clear idea of your exact debt situation. Gather all of your credit card bills and loan documents and just calculate exactly how much you owe to your creditors.

Analyze your debt situation by considering your debt amount and your monthly income. Also consider your necessary monthly expenses. If you find that your debt is too big and your salary is too low for repaying the debt, you may think about some professional Debt Help. If you find that your debt is manageable if you act smart, then carry out your own Debt Help plans.

Start paying off your debts with the high interest ones. Both in case of your credit card accounts and other loan accounts, first try to repay those which carry comparatively higher rates of interest. At this time, pay the minimum required amount for the low-interest debts. Once you pay off the high interest debts, start to pay more towards repaying the low-interest debts.

Substantially reduce your credit card usage. If you really want to help yourself to come out of the debt problems, you have to ensure that you are not using your credit cards unnecessarily. If you hold multiple credit cards, cancel some. Keep a few and use them only when you need them genuinely.

Create an emergency fund. Otherwise in emergencies you will again start to use your credit cards. This will lead you to even more debt. So, if you want to get Debt Help on your own, start an emergency fund immediately.

Maintain a debt diary. At the end of every month, note down how much of debt you have paid off. This way, you will not only have a clear documentation of your debt repayment, but will also get a sense of accomplishment and that will help you to remain motivated.

N.B: This guest post is written by Sandy Thomson.
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May 13, 2010
fashionjewelleryRajesh Exports (REL), in a potential game-changing move for the industry, announced plans to sell products at per-gram rate, the buyer paying no wastage, making and other hidden charges. REL said the initiative, promoted as Gold Revolution, would be launched at its Shubh retail outlet showrooms.

Contrary to the general practice of all jewellery stores, Subh outlets will not charge any additional charges like wastage, making charge, value addition charge, etc. REL will sell 22 carat gold jewellery and coins with Hallmark of 100 per cent guaranteed purity.

For example, if a customer buys 10 gms of gold at a price of Rs 1,600 per gm, he actually pays 15 per cent 20 per cent more than the Rs 16,000 jewellery due to various hidden charges. But Subh will charge only 3 per cent or Rs 48 more per gram towards its various costs.

In next 3 years REL plans to open 250 Subh showrooms in various cities in the country, a ten fold jump from 25 at present. This will help the company increase its presence in jewellery retail space which now accounts only for 2 per cent of its revenue. Going by these developments REL is a definitely a stock to watch, in the coming days.
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