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Sunday, December 05, 2010

IRB Infrastructure Developers

Investors can consider accumulating the stock of IRB Infrastructure Developers (IRB). At the current price of Rs 227, the stock trades at 14 times its expected per share earnings for FY-12.

Applying for IPO via ASBA

It is almost certain these days that you will not get what you asked for in an IPO — two lots for four applied, one lot for five and sometimes nothing at all!

In running the race with lady luck to buy into offers, Shekar ran out of cheque leaves and also saw the balance in his savings account dip below the minimum required.

Ireland finally gets €85bn EU bailout

European leaders approved an €85bn, or US$112.53bn, aid package for the debt-plagued Ireland besides unveiling a permanent system to resolve the region's fiscal problems. The agreement was announced on Sunday at an European Union (EU) finance ministers’ meeting in Brussels. The financial package for Ireland includes €10bn for immediate recapitalization measures, €25bn on a contingency basis for banking system supports and €50bn covering budget-financing needs. "This program is absolutely essential for the country," Irish Prime Minister Brian Cowen said at a press conference in Dublin. "We have carefully considered all available policy options. It’s the best available deal for Ireland." Cowen added that the bailout doesn’t involve any change in Ireland’s ultra-low corporate tax rate of 12.5% and that repayments will be at a 5.8% interest rate. The funding will be available to Ireland at a cheaper interest rate than what is available on the international markets where its borrowing costs have soared to about 9%, he said.

Toyota Etios priced between Rs 5-7 lakhs

The Toyota Etios sedan was launched in Bangalore by Akio Toyoda, President of Toyota Motor Corp. at a price of between Rs 4.96 lakhs and Rs 6.87 lakhs (Ex-showroom Delhi). The standard version of the Etios called "J" will be available at Rs 4.96 lakhs (Ex-Delhi), followed by "G" at Rs 5.46 lakhs, "G+" at Rs 5.96 lakhs, "V" at Rs 6.41 lakhs and "VX" at Rs 6.86 lakhs. Bookings for the Etios sedan started this week while the delivery of the car will start in January. The hatchback version of the Etios called Liva will be launched in April 2011, according to Toyota Kirloskar Motors officials. Toyota Kirloskar Motors aims to sell about 70,000 units of Etios and Liva in CY 2011. The joint venture between Kirloskar group and Toyota Motor Corp. plans to sell a total of 73,000 vehicles in India in 2010 and 145,000 vehicles in 2011. The company is investing Rs 32bn to set up its second manufacturing facility in Bangalore to roll out the Etios and the Liva cars, Toyoda said. About 4,000 engineers have spent five years for developing the cars, he added. Toyota Kirloskar Motor aims to capture 10% of the Indian passenger car market by 2015, mainly on the back of Etios and Liva models.

India's manufacturing PMI jumps in November

India’s manufacturing output accelerated in November from the previous month, with a key private sector gauge touching its highest level since May this year. India's Purchasing Managers’ Index (PMI) for manufacturing stood at 58.4 in November from 57.2 in October, according to HSBC Holdings Plc and Markit Economics. A reading over 50 indicates expansion while anything below it denotes contraction. The previous highest reading in May was 59.0. With this, the widely followed manufacturing gauge has been above the 50 mark for the 20th consecutive month.

Weekly Newsletter - Dec 5 2010

After a fairly strong week, the market gave up some of the gains, with the broader market taking a beating after SEBI banned the promoters of four companies for alleged price manipulation. So, looks like the overhang of scams will continue to haunt the Indian market just as everything seemed to fall in place. Another factor that could affect the sentiment early on Monday is a weaker than expected US jobs data for November. The world's largest economy managed to add just 39,000 non-farm payrolls versus expectations of 150,000. What's worse, the unemployment rate climbed to 9.8% as against expectations of 9.6%. Still, much will hinge on how Wall Street and the European markets react to the jobs report.

Indian economy grows faster than expected

India's economy grew at a much faster pace than anticipated in the second quarter of the current fiscal year, prompting a recovery in the stock market and lifting hopes of meeting the Government's annual target of 8.75%. India's economy expanded by an impressive 8.9% in the July to September quarter as against 8.7% in the same period of the previous fiscal year, the Commerce & Industry Ministry said. Meanwhile, the GDP figure for the April to June 2010-11 period was revised to 8.9% versus a preliminary estimate of 8.8%. The consensus estimate was for a GDP growth of 8.2-8.3% in the second quarter of FY11 with the broad range of 8-8.5%.