Sunday, August 22, 2010
Investors with a three-year horizon can be consider accumulating the stock of ICRA, a credit rating agency with a presence in consultancy, advisory, information and IT services. The company may continue to deliver strong earnings growth with the revival in India Inc's capital raising plans, directly adding to rating revenues. Implementation of base rate and possibility of increased volumes in securitised issuances may also help maintain good earnings growth. A major portion of ICRA's current earnings comes from rating services, and being one of the prominent players, it is well-equipped to take advantage of any opportunities in this sector.
Investors with a high-risk appetite can consider buying the IIML stock.
With business entirely focussed on alternative asset management (private equity or PE), this only listed PE firm offers investors an opportunity to participate in the improving scope for PE investments in India.
EVERONN EDUCATION LIMITED
ANNUAL REPORT 2009-2010
Your Directors have pleasure in presenting the Tenth Annual Report together
with the Audited Accounts of the Company for the year ended 31st March
The Nifty finally went past 5,500, due to fresh buying in IT (information technology) and banking stocks. The index struggled for almost five weeks around this mark before crossing it this week. The Nifty settled with a gain of 79 points at 5,531.
Investors with a three-four-year perspective can subscribe to the initial public offerof Gujarat Pipavav Port (GPPL). The strong parentage of A.P Moller-Maersk group, strategic location and fast growth in volumes, albeit on a low base are positives for this private port. The port is located on the main maritime trade routes and provides a good alternative for ships seeking to anchor at Mumbai.
China has passed Japan to become the world's second-largest economy behind the US. The Japanese economy was valued at about US$1.28 trillion in the April to June quarter, slightly below China's figure of US$1.33 trillion. The GDP of the US was roughly US$14 trillion in 2009. GDP expanded at an annualized pace of 0.4% in the three months ended June 30, slowing from a revised 4.4% expansion in the first quarter, the Cabinet Office said in Tokyo. The median estimate of economists was for annual growth of 2.3%.
MakeMyTrip made its debut on the Nasdaq Stock Market on August 12, initially offering 5 million shares at US$14 each. Reaction was so strong the day it went public that the company then put more stock on the market, bringing its total initial offering to US$80.5mn.
Moser Baer Projects Private Limited (MBPPL), a developer of power generation facilities with a diverse pipeline of thermal, solar and hydroelectric power projects has attracted an investment of Rs13.5 billion (approximately US$300 million / Rs1,350 crore) from The Blackstone Group. MBPPL has been founded by Deepak Puri & Ratul Puri, who have earlier established Moser Baer India Limited (MBIL), a world class technology manufacturer. MBPPL plans to commission 5,000 MW by 2016 comprising of 4,000 MW of thermal, 500 MW of solar and 500 MW of hydro capacity. Blackstone’s investment will enable MBPPL to emerge as a leading player in the India energy sector over the next few years.
India's wholesale price based inflation fell to a six-month low in July, slipping below the double-digit mark, the Government. This might give some flexibility to the Reserve Bank of India (RBI) in formulating monetary policy, especially if inflation moderates further next month. Inflation, as measured by the wholesale price index (WPI), stood at 9.97% last month as against expectations of a 10.4% rise. It was also down from June's number of 10.55%. The annual rate of inflation stood at (-)0.54% during the corresponding month of the previous year.
Indian telecom market has been growing at a CAGR of approximately 30% since 1995 and still growing strong. With additions of more than 14 million subscribers per month in the year 2009, the wireless subscriber base has grown to 635.51 million in June 2010, second only to China. Despite strong growth the industry also faces certain challenges such as low rural penetration, stagnant data usage over the years and limited broadband services says PricewaterhouseCoopers in its latest report titled ‘Mobile Broadband Outlook 2015’. However, the recently concluded 3G spectrum and BWA auction saw intense competition among the bidders resulting in a revenue inflow of Rs.1.06 trillion for the government, surpassing most estimates. In this context, the report examines the potential for Mobile Broadband Services, its impact on the telecom industry and other allied sectors in India. On the future of mobile broadband in India, Sivarama Krishnan, Executive Director, PricewaterhouseCoopers commented, "The transformative power of mobile broadband lies in its ability to enable greater access to the internet in India. Everyone from telecom industry, Government to other industries will be able to leverage a ubiquitous platform to reach out to a wide range of customers and provide diverse products and services more effectively."
The government has reportedly cleared the amended legislation. It has resolved the understanding with the BJP over the nuclear liability bill. The bill will be brought to Parliament next week. According to reports, there are no significant dissenters with smaller parties like JD(U) and NC pitching in for the bill. Even the RJD members on the standing committee had supported the bill. Earlier it was suggested that the bill should fix the liability cap on the state-run operator at Rs15bn (~US$320mn) as against Rs5bn (US$110mn) proposed in the original draft law. There was no compensation burden on private suppliers and contractors in the original draft.
The debate now is whether Nifty breaking above the 5500 level is a break out or bull trap. In any case, the indices were getting jittery at higher levels. The FII inflow has kept the momentum going so far. The main indices scaled to 30-week highs on Thursday pushing along banking and realty stocks. But Friday was a different ball game. Global markets reversed direction following a host of reports which pointed towards a slowdown in the US economy.
During the week the benchmark indices maintained their winning streak by closing in green for the third consecutive week. On a weekly basis, The sensex as well as the Nifty closed at the highest level since the week ended January 18, 2008. On a weekly basis, the Nifty gained 1.44%
to close at 5530.65.