Inflation expected to be 6-7% : Pranab Mukherjee

Indian Finance Minister Pranab Mukherjee is expecting the inflation would be 6 to 7%. If it goes below that, then the growth will be adversely affected. This range will be moderated one and this can be taken into account during formulation of policy rates by Reserve Bank of India (RBI).

Earlier the inflation was so high and the food inflation was as high as 22 %. "I had to take corrective measures as these high figures were not desirable," he said. In Feb 2012, inflation as measured on the Wholesale Price Index (WPI) rose to 6.95 %, against 6.55 % in March 2012.

Mukherjee said that the 2012-13 Budget was placed with a view of fiscal consolidation, control of inflation and bringing back India to a right route of sustainable growth.

Tata Motors plans to invest Rs 600 cr for FICV Plant

Tata Motors is planning to invest around Rs 600 cr for setting up of a manufacturing plant to develop Futuristic Infantry Combat Vehicles (FICV)."The development cost of FICV could be around Rs 300 cr and a manufacturing plant for the same could be around Rs 250 cr or 300 cr," Tata Motors Commercial Vehicles Business Unit President Ravi Pisharody reporters here.

Once after getting the confirm orders from Indian government only they are planning to set up a plant to manufacture Futuristic Infantry Combat Vehicles (FICV)

Tata Motors is one among the 4 companies which have received invite to supply around 2,000 units, Pisharody said. Still the tender is yet to be completed so we can’t conclude on the final decision about setting up of the plant.

If everything goes fine then they are planning to set up a manufacturing unit in Karnataka (Dharwad), India.

Tata motors revenues from defence business is expected to be Rs 1,000 cr in this fiscal year, this is 50% increase over the last year. In the next fiscal, they are looking at 25-35% growth. Already the company got order for Rs 250-300 cr to supply landmine protected vehicles for Maharashtra and Jharkhand. Now the firm is in the examining stage to enter into the Middle East market for its defence vehicles. Currently it exports to Nepal, Sri Lanka, Africa and Afghanistan (US agencies).

Bank of Baroda preferential issue of shares to LIC

Bank of Baroda (BOB) Share holders have approved the bank to raise funds through preferential issue. BOB has informed Bombay Stock Exchange (BSE) that the Bank has allotted 1,95,77,304 equity shares at Rs. 840.10 cumulatively to Rs. 1644,68,93,090.40 to Life Insurance Corporation (LIC) of India on preferential basis.
In 2011, the government infused Rs 2,461 crore in the bank. BoB posted 20.7 % rise in net profit at Rs 1,289.85 cr in the 3rd quarter of the current fiscal on the back of better growth in its core income

Stock Name: Bank of Baroda
BSE Script code: 532134
Last Traded Price: Rs 793.65 on EOD March30th2012

ONGC in partnership with ConocoPhillips

India’s one of the leading oil company Oil & Natural Gas Corporation (ONGC) has joined hands with US based ConocoPhillips for exploration and expansion of 19 new deepwater oil & gas blocks. They are planning to explore shale-gas as well. This is going to be a one of the best deal for ONGC to make its company progress steadily.

ConocoPhillips is 3rd largest integrated energy company in US and 5th largest refiner in the world. This partnership between ONGC and ConocoPhillips could result in ONGC offering equity stakes in some of its blocks in India to them. ONGC have been looking for a partner for deep-water technology, shale-gas exploration and development for the past few months, ConocoPhillips agreed for the same.

ONGC chairman and managing director Sudhir Vasudeva, however, said there was no financial transaction between the two companies. “The memorandum of understanding is about getting into technical evaluation of 19 deepwater blocks and also shale gas,” he said. The 1st phase involves assessment of data across Damodar, Cauvery and Krishna-Godavari basins.

Stock name: Oil And Natural Gas Corporation Ltd.

BSE Script code : 500312

Last Traded Price: 267.30

ONGC share was up by 2.45 % at the end of day March30th 2012

SEBI announced new checks in Algorithmic trading

The Stock market regulator SEBI has announced new checks in algorithmic trading or high-frequency trading, they issued new set of guidelines to avoid the potential risk which can be caused by automated Software’s used by stock brokers to do trading in exchanges. Stock exchanges have to make sure that all algorithmic orders (Automated orders by software) are directed through broker servers located in India and the suitable threat control mechanism to address the risk or issues coming from algorithmic orders during the trades.

What is meant by algorithmic trading?
Nowadays all the stock market firms started using the latest software’s to place an order and those software’s are getting enhanced periodically to speed up the transaction. It used mathematical models and powerful computers to order trades at ultra fast speeds when compared to manually punched trades, these trades are faster which will benefit from quick change in prices during the transaction, This is also called as high-frequency trading.

Indian small saving schemes would yield more

As per the new announments from finance ministry indian small saving schemes will give you a higher return from the april 2012 after government announced changes in the rates in line with the higher market rates. almost 0.2% to 0.5% has been increased in different categories. Now a 10-year National Savings Certificate (NSC) will yield you 8.9% while the popular Public Provident Fund (PPF) will yield 8.8%. The savings deposit rate is unchanged at 4%.

The small savings schemes was not performing well in the recent years as the rate was very less than what was offered by other instruments. Now with effective rates, the total Net outflow would be Rs 12,000 crore from small savings schemes in the current year starting from April 2012. still when we compare with private banks this is still lesser than what we will get in private banks. HDFC offers 9% on a term deposit of one year. With revised rate, post office deposit of one year is 8.2%.

Petrol prices will be up by Rs 7.5 in india

Oil companies are planning to increase the price of the petrol by Rs 7.5 after hearing from the oil secretary. As per the report, oil secretary asked retailers to raise the petrol prices by Rs 7.5 to compensate the losses which is occuring now. currently these oil companies are losing Rs 6.43/ litre. Oil secretary GC Chaturvedi added that the ministry has asked for additional Rs 40,000 crore cash subsidy for FY12.
"The total under-recovery, as I had indicated several times, is approximately Rs 1,40,000 crore. The finance ministry has agreed, for first three quarters, Rs 45,000 crore. Few companies have already contributed around Rs 5,300 crore. The remaining under-recovery is our request to the FinMin be given for the fourth quarter," Chaturvedi told press.

Buy HDIL Mid term target Rs150

Stock Name: Housing Development & Infrastructure Ltd (HDIL)

Script Code: 532873

BUY PRICE: RS 80 - 82

Target : Rs 150

Months : 3 - 4 months

If you buy this stock below 80 levels it would be a good buy. Once upon a time this stock went to 900 to 1000 range and all. for long term prespective HDIL would be a great stock one can hold it. while buying the the stock don't buy huge number of shares. how much ever you want to buy, in that buy only 30% at this level. if further it goes down you can buy another 30% this would be a great strategy to follow.

SBI new plan for existing home loan customers

India's largest bank State Bank of India (SBI) has allowed their existing home loan customers to reprice their existing loans at lower rates which will be a relief for the customers. This can be availed by the existing home loan customers by paying 1% of the outstanding amount. This would mainly to help all borrowers whose home loans interest is as high as 14.75% at present. At present the floating rate of SBI bank is linked to the base rate of 10%. Its current floating rates vary from 10.5% for loan amount up to Rs 30 lakh, 10.75% for between Rs 30 to 75 lakh, and 11% for loans above Rs 75 lakh.
"We thought of giving an option to our existing home loan borrowers who are on the prime lending rate to switch over to the new floating rates that are much lower than our prime lending rates. Anybody can reprice their loan by paying a 1 per cent of their outstanding as an upfront fee," managing director and chief financial officer of the bank, Diwakar Gupta, told Press.
This is to avoid the borrowers switching their loans to other banks. SBI is convincing the customers with this new method to reduce their interest burden.

Buy Shiva Global Agro Industries Ltd mid term target Rs 50

Stock Name: Shiva Global Agro Industries Ltd

Scrip code: 530433

Listed in : Bombay Stock Exchange (BSE)

BUY PRICE: RS 23

Target : Rs 50

Stop loss: Rs 20

Months : 1 - 2 months

TVS Logistics acquired UK-based Universal Components

TVS Group subsidiary TVS Logistics acquired UK-based Universal Components for Rs 100 crore, Universal components is wholesale distributor of commercial vehicle parts. This is one of the biggest acquisitions for TVS Logistics. Its Managing Director R Dinesh told reporters that the total amount spent on this acquisition is Rs 100 crore It was made through the Special Purpose Vehicle into Universal Components, he added

This acquisition would surely help TVS group to develop its presence in the commercial Vehicle spare parts business in other Asian markets and help to get new clients from UK for their existing spare parts. this was done through TVS Europe Distribution, so now TVS Europe Distribution has 90 % of Universal Components UK Ltd. the present MD of Universal Components David Kernahan would continue to head the business, sharing his knowledge with TVS.

UB Distributors helping Kingfisher airlines with Rs 1000 Crore

As a last option to save Kingfisher airlines from the trouble UB Distributors is giving helping hand with Rs 1000 crore. This will fulfill the banks request on the existing loans which will make the way clear to allocate fresh funds to help kingfisher. Even this announcement about the investment is still under discussion and will be finalized in another 48 hours. Suppose if these funds coming into Kingfisher Airlines means it will be coming as "associate" of UB Group. Again this will be a debt or they have to take equivalent equity. Apart from this some of the Kingfisher bank accounts are not frozen, so they can clear the income tax, service tax dues. Initially it agreed to pay only Rs 10 crore and now they said they can pay Rs 44 crore in a day or two

The banks have a total exposure of over Rs 7,000 crore, of which Rs 4,000 crore is in the form of term loans. So it will be very difficult for kingfisher airlines to some out of this issue completely. Because if they are getting fresh funds from bankers, will they be able to repay it? Whether they have clear business plan to come up in near feature? These kinds of questions are arised by the bankers. If they are not able make the critical payment for bankers, then the banks will take necessary actions against the non performing asserts such as villa, corporate office, two helicopters and ATR aircraft, which was valued at Rs 4000 crore approximately.

Today (March 26, 2012) the stock touched its all time low, it went down by 6.7% and closed at Rs 16.75

Opto Circuits Bonus 3:10

Opto Circuits India decided to give three bonus shares for every ten shares and informed the same to Bombay Stock Exchange (BSE). In the announcement to BSE they mentioned that the Record date for the purpose of issue of Bonus shares in the Ratio of 3:10 which has been already approved by the shareholders through Postal Ballot is fixed on 31st March, 2012. the stock was doing average and it went up to 290 range in february,Yesterday it was closed at Rs 274.90 and after this bonus news the stock went down drastically to 254.75. It is one of the best stock one can hold for long term which is yielding good amount of profit in the recent years.

Stock Name: Opto Circuits India Ltd.
Script Code : 532391
Last traded Price: Rs 254.75 on March 26th 2012

Maruti car prices gone up to Rs 17000 due to excise duty

As a part of indian union budget 2012 the excise duty has been increased from 10% to 12% which leads to price hike in auto sector. India's largest car maker Maruti Suzuki has increased the prices of its cars by up to Rs 17,000.This will be applicable fr all the car models ranging from Maruti 800 to top model SX4. It will be approximately 1.75 % increase in the car prices.

The increase in the price for each car model is listed here

Maruti 800 - Rs 3,500 to Rs 3,900
Alto (800 cc) - Rs 4,200 to Rs 5,900
Alto K10 - Rs 5,500 to Rs 5,700
Wagon R - Rs 6,000 to Rs 7,600
Swift - Rs 7,700 to Rs 11,900
Swift Dzire - Rs 8,500 to Rs 12,700
SX4 - Rs 9,400 to Rs 17,000

The price hike will also impact Maruti's other models such as Estillo, A-Star, Ritz, Omni, Ecco and Gypsy, which will now be increased by Rs 3,700 to Rs 10,000 depending on the model.

MT Educare IPO

Stock Name:MT Educare Ltd Issue open date : 27-3-2012 (March 27) Issue close date : 29-3-2012 (March 29) Issue price : Rs 80.00 Lead Managers : ENAM SECURITIES PVT LTD Total amount : Rs 35.00 Crores Total size : 43,75,000 shares

China faking india FMCG Products

Many Indian products are getting faked by Chinese manufacturers. Especially FMCG sector giants Dabur and ITC products has been faked in china and supplied across india, africa and other part of world. Every year india is losing $5 billion because of this "faking" India's fourth largest FMCG firm Dabur India has conducted a raid in china and found that the Dabur products are getting faked, but Chinese government has not taken any action against them. These fake products are getting manufactured in china with "Made-in-India" label and exports across the world. These fake products are sold for very cheap prices; this sub standard fake product causes huge damage to the brands reputation. The consumers using the fake products may lose interest in this top brands. ITC's one of the cigarette brands is faked and supplied widely in the states like Chhattisgarh, Bihar and Uttar Pradesh. Even big international brands such as Nokia, Adidas, Reebok and Nivea were also widely counterfeited in China and supplied in India and other parts of the world. Federation of Indian Chambers of Commerce and Industry (FICCI) formed a panel called "FICCI-Cascade" that expands into a committee on anti-smuggling and counterfeiting activities which is destroying indian economy. The committee is working closely with the government to control this activity. According to a report by think tank Indiaforensic Research Foundation, the total loss to the indian economy annually due to crimes such as counterfeiting, commercial fraud, smuggling, drug trafficking, bank fraud, tax evasion and graft is estimated at Rs.22,528 crore.Being a consumer we have to be very careful while buying the products. Buy products from the reputed stores only which will help us to aviod such fake products

DLF Brands plans to expand retail business in india

DLF Brands has attractive future plans to expand its retail business in india. It is a subsidiary of reality sector giant DLF Ltd, They are planning to introduce more international brands into India and working hard to open at least 50 new outlets every year in our country. Already talks are going on with a European cosmetic company to roll out their brand in India. As of now DLF Brands operates standalone stores for 11 global brands in India, including Armani, Boggi, Sunglass Hut, Alcott, DKNY, Claire and Mothercare. Apart from this they are currently talking with several international brands to bring them into India. In another three months the exact partnership details will be announced.

National Buildings Construction Corporation Ltd IPO

Stock Name:National Buildings Construction Corporation Ltd

Issue open date : 22-3-2012 (March 22)
Issue close date: 27-3-2012 (March 27)
Issue price : Rs 106.00
Lead Managers : IDBI CAPITAL MARKET SERVICES LTD and ENAM SECURITIES PVT LTD
Total size : Rs 127.20 Crores
Total size : 1,20,00,000 shares

Telenor looking for a new partner to start fresh in india

One of the new telecom operator Uninor’s 122 licences got cancelled by the Supreme Court in Feb 2012, Now they are looking for a new partner to start freshly.
Uninor is a joint venture between Norwegian Telenor and Indian realty major Unitech. The Norwegian government holds the majority stake (Around 70%) in Telenor. As the case is still going on in court, telenor looking for a new partner and already some interested parties have been approached and the FIBP (Foreign Investment Promotion Board) application also filed.They don’t want to disclose much info about the future plans.
Uninor is currently working on the following things
1)Find a solution with the current partner(Unitech) before applying for new licence
2)New partner to come in, Once solution is finalized with Unitech
3)transfer assets from the old company into the new company

Both Unitech and Telenor have been fighting a legal encounter over the control of Uninor. Unitech has already approached the Company Law Board (CLB)seeking mediation in the issue. So far telenor has invested about Rs 15,000 cr in India.Because of this licence cancellation dispute uninor lost around 20% subscribers in india

In Feb 2012, uninor became 2nd largest operator in tamilnadu with 3.21 lakh customer’s addition and Aircel is in 1st position with 3.43 lakh. In Tamil Nadu, Uninor has about 3,500 retailers and has more than 19 lakh customers in total.

No more loans for Kingfisher Airlines

Kingfisher Airlines is looking for bank funding to get rid of the issue. As of now the company is in trouble in paying the dues for Airport Authority, Salary dues, existing loans. In this financial instability they are expecting a fund from major banks for which the banks denied as the existing loans are nit closed and at present the kingfisher airlines has cancelled many number of flight operations in both domestic and international. So they are not performing well in the aviation industry. Most of the major banks in india including State Bank of India
(SBI), Punjab National Bank (PNB) and Bank of Baroda have identified loans to Kingfisher as non-performing and they may not be able to repay the money on time. According to asset classification norms by Reserve Bank of India (RBI), an account becomes non-performing if the principal and/or interest are due for more than 90 days.
They immediately need Rs 2,500 cr as working-capital loans to clear its dues and get back on track.
Kingfisher’s share price has gone down drastically in the past one month from Rs 29.15 to Rs 17.95 and many stock broking firms suggests to sell it off
Stock Name: Kingfisher Airlines Ltd
Script code: 532747
Last traded Price: Rs17.95

Nestle india dividend plan

One of the Leading FMCG Sector company Nestle India has informed Bombay Stock Exchange (BSE) that the Register of Members and Share Transfer Books of the Company will remain closed from March 23-30, 2012 for the purpose of Payment of Final Dividend the same will be discussed in the Annual General Meeting (AGM) of the Company which will be held on coming Friday, March 30, 2012

Stock name: Nestle India Ltd
Scrip code: 500790
Last Traded Price(March23, 2012) : Rs 4690.00