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Friday, November 30, 2012
REC Tax Free Bonds - Dec 2012
Issue period: 3 December 2012 to 10 December 2012
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Issue Highlights:
- Issue of Tax Free Secured Redeemable Non Convertible Bonds
- Issue Size: Rs 1,000 Crore with an option to retain oversubscription upto Rs 4,500 Crore
- Additional Coupon Rate - Category-IV Applicants - 0.50% p.a.
- REC is one of only 16 Indian PSUs granted "Navratna" status
- 66.80% shareholding held by Govt. of India as on 31 Sep 2012
- When Bonds held by the original allottees of Category IV are sold / transferred, coupon rate will be revised to the coupon rate for Category I, II & III investors. Refer to details.
- Application cannot be made by Non-resident Indians and Foreign nationals.
Key Benefits:
- The income from interest on these Bonds is fully exempt from Income Tax and no TDS is applicable.
- Wealth Tax is not levied on investment in bonds under section 2(ea) of the Wealth-tax Act, 1957.
- Credit Ratings indicating highest safety: AAA by CARE and ICRA, AAA/Stable by CRISIL.
- The Bonds shall be listed and can be traded on BSE and NSE.
- No upper limit on investment amount.
- No lock in period for the Bonds.
Terms of the Issue:
Particulars
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Issue Details
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Face Value per Bond
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Rs 1,000
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Tenor
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10 years
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15 years
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Minimum Application
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Rs 5,000 (in multiples of Rs 1,000 thereafter)
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Coupon Rate % p.a. (Category I, II and III)
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7.22
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7.38
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Additional Coupon Rate % p.a. (Category IV)
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0.50
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0.50
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Total Coupon Rate % p.a. (Category IV)
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7.72
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7.88
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Effective yield % p.a. (Category I, II and III)
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7.22
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7.38
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Effective yield % p.a. (Category IV)
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7.72
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7.88
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Frequency of Interest payment
(Paid on 1st December) |
Annual
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Annual
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Issuance
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Physical and Demat mode
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Interest on application % p.a.
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As per coupon rate applicable to investor category
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Interest on refund % p.a.
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5.00
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Redemption Date
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10 years from Deemed Date of Allotment
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15 years from Deemed Date of Allotment
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Redemption Amount
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Repayment of the face value with interest
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Issue Structure:
Investor Category
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I - Institutional
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II - Non Institutional
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III - HNI (more than 10 lacs)
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IV - Retail (upto and including 10 lacs)
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Issue allocation
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15%
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15%
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40%
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40%
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*Basis of allotment: on first come first serve basis
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Daily News Roundup - Nov 30 2012
Hero MotoCorp Ltd reported retail sales of over 1.1mn units in October and November. (BL) NTPC said the first unit of 500 MW of the Vallur Thermal Power Project set up by NTPC Tamil Nadu Energy Co Ltd has started operations. (BL) The Supreme Court directed the Central Bureau of Investigation to "take action in the matter of prosecution" of the telecom companies and public servants mentioned in its report, prepared by A P Singh. The companies involved in the proceedings before the court were Bharti Airtel and Vodafone India. (BS)
Noteworthy November series: Sensex, Nifty skyrocket
What a fantastic finish to the November F&O series. It was a day where long rollovers in the high beta sectors like Real Estate, Infra and Auto and the defensive Pharma stocks lifted the markets to hit the highest level in the calendar year 2012. While, some heavy short covering in the Banking sector towards the fag end of the session saw the NSE Nifty close above the 5800 mark for the first time in the year 2012. Even the Sensex breached the 19,000 levels for the first time in nearly two-months on expectations that the government would be able to push through economic reforms. Adding to the bullish flavor, credit rating agency Moody’s on Tuesday said the outlook on India rating was stable. Moody's said the stable outlook on the country's Baa3 rating was based on its structural strengths of a high household savings rate and relatively competitive private sector, which could help raise growth in coming years. Finally, the BSE Sensex closed at 19170, surging 328 points over the previous close. It had earlier touched a day's high of 19205 and a day's low of 18873. It opened at 18873. The NSE Nifty was quoting at 5,825, up 98 points over the previous close. It earlier touched a day’s high of 5,833 and a day’s low of 5736. It opened at 5,736. RIL, TCS, Wipro, ICICI Bank, Bajaj Auto, Tata Motors, ITC, Bharti Airtel, SBI, L&T, Ranbaxy, Tata Power, NTPC, Dr Reddy’s Lab, HDFC, Coal India, L&T, are among gainers in Sensex and Nifty. Infosys, BHEL, NTPC, Maruti Suzuki, Hero MotoCorp, Siemens, Power Grid, HCL Tech, are among losers in Sensex and Nifty. The INDIA VIX on NSE surged 10% to end at 15.37. It hit a day’s high of 15.62 and a day’s low of 13.48. Today’s noteworthy rally was seen on the back of life time high turnover over 3.92 lakh crores turnover was registered on the bourses. For the Series, the NSE Nifty and the BSE Sensex ended higher by 2.1% each.
December delight is here
To overcome difficulties is to experience the full delight of existence - Arthur Schopenhauer The market seems keen on repeating the historic trend of December being a delightful month as it has for most years in the last two decades. The Nifty has managed to overcome the 5800 hurdle for now thanks to a bout of short covering and renewed buying interest. The outlook remains optimistic at start with global cues mostly pointing upwards. The rally could well continue if the government manages to get its act together on crucial pending bills. For the day, investors will closely keep an eye on the GDP data for the quarter ended September 30. Other data expected include fiscal deficit numbers and possibly the growth figures of Eight Infrastructure industries.
Bullions back to gains
Yellow metal rises for first time in four days Bullion metals ended substantially moderately higher at Comex on Thursday, 29 November 2012. Gold prices ended higher for first time in four days. The key outside markets were also bullish for the precious metals on Thursday, as the U.S. dollar index was weaker and crude oil prices were higher. Gold for December delivery rose $10.7 (0.6%) to settle at $1,727.2 an ounce on the Comex division of the New York Mercantile Exchange on Thursday. On Thursday, March silver rose 66 cents, or 2%, to settle at $34.43 an ounce.
Market may extend recent gains on firm Asian stocks
The market may extend recent gains on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 21.50 points at the opening bell. Asian stocks rose Friday, as Japan's cabinet approved a second economic stimulus package and its industrial production unexpectedly increased in October
Sunday, November 25, 2012
Tara Jewels IPO Analysis
CM RATING 38/100 Tara Jewels is promoted by first-generation entrepreneur Rajeev Sheth. The company is predominately an exporter of studded diamond jewellery, which constituted about 81% of total turnover as on March 2012 But to tap the growing domestic mid-income segment, Tara set up its first retail showroom in October 2008. Currently the company has net 29 stores spread over area of about 29,950 sq feet across suburban areas of metros, mini metros and cities with higher concentration of the mid-income segment. Each store is around 1,000 sq feet, carrying about Rs 2.5 crore worth of inventory of fashion jewellary. Tara plans to open about 20 new stores across west India, central India and the NCR region in India by March 2013.
Weekly Stock Picks - Nov 25 2012
Buy Coal India Buy KPIT Cummins Buy HInd Uniliver Buy Dr Reddy's Labs Buy PFC
Weekly Newsletter - Nov 25 2012
The indices may have notched up marginal gains for the week but the performance remained more or less subdued save for Wednesday when some gains were seen. The global cues were also hard to come by with a truncated week in US on account of Thanksgiving Thursday and Black Friday. The market didn’t seem to pay too much attention to the ruckus in Parliament as it managed to avoid any losses on Thursday even as the Lok Sabha and Rajya Sabha were adjourned. The Government is locked in a battle with the opposition over the validity of a debate over FDI reforms. The finance minister is in favour of rolling out GAAR from April 2014. Meanwhile, Moody's says the Indian economy is likely to grow at 5.5 % to 6 % this year and is hopeful that things will improve from then onwards. However, if India fails to rein in its ballooning deficit, India could face a downgrade in its ratings. The market could remain in a narrow range for some time as clear triggers are lacking. India’s Q3 GDP figures on 30th November will be keenly watched. Among the global cues to look out for are Greece debt situation and US fiscal cliff handling. On the political front, a meeting of all party leaders of Lok Sabha and Rajya Sabha has been conveyance by Parliamentary affairs minister Kamal Nath; the outcome here will be crucial for Parliament to function.
Winter of discontent...Parliament sees two adjournments
Opposition calls for vote on FDI, TNC for no confidence in Govt. Shiv Sena leaders want their late leader Bal Thackeray to be duly honored in Parliament. In the wake of differences over the government's decision to allow FDI in retail both the houses of the parliament were adjourned as BJP led opposition called for a debate and vote on the matter. The first day of the Winter session of Parliament saw the Lok Sabha being adjourned till 12:30 whitely Rajya Sabha was adjourned for the day. The government faces a two pronged assault as Lok Sabha Speaker, Meera Kumari, said that she received a notice of no confidence from former ally and Trinamool Congress supremo, Mamata Banerjee. Shiv Sena leaders wanted their late leader Bal Thackeray to be duly honoured in Parliament. Prime Minister Manmohan Singh arrived at Parliament stating that he had a very heavy legislative agenda during the Winter Session. "I seek cooperation from my colleagues in the House. We are ready to discuss all issues on the floor of both the Houses." Parliamentary Affairs Minister Kamal Nath was quoted as saying, "Opposition can't decide date and time of discussions in Parliament. We are ready to discuss FDI with BJP and others. The Parliamentary session should be carried out peacefully." After the Parliament resumed session at 12:30, the no confidence motion was rejected in the Lok Sabha as the motion failed to receive support in the house. Speaker Meira Kumar asked members supporting the motionto stand up; none but TMC stood up. The Lower House was adjourned for the day amidst sloganeering and shouting from MPs as Leader of Opposition Sushma Swaraj tried to initiate a debate and vote on the FDI in retail issue. Parliament meets for the Winter Session between November 22 and December 20, 2012. There will be a total of 20 sittings. The agenda for legislation includes 25 Bills pending for consideration and passing. The government plans to introduce 10 new Bills.
MindTree reboots after block deal
MindTree rose 1.71% to Rs 670.60 at 11:04 IST on BSE after a block deal of 1.9 lakh shares was executed on BSE at Rs 665 per share at 9:52 IST. The block deal constitutes 0.46% of MindTree's equity capital. Meanwhile, the BSE Sensex was up 2.75 points or 0.01% at 18,520.09. On BSE, 2.04 lakh shares were traded in the counter as against average daily volume of 26,244 shares in the past one quarter. The stock hit a high of Rs 679.75 and a low of Rs 663 so far during the day. The stock had hit a 52-week high of Rs 761.95 on 12 September 2012. The stock had hit a 52-week low of Rs 371.70 on 1 February 2012. The stock had underperformed the market over the past one month till 22 November 2012, falling 1.9% compared with the Sensex's 1.47% slide. The scrip had also underperformed the market in the past one quarter, declining 2.09% as against Sensex's 3.76% rise. The small-cap IT company has equity capital of Rs 41.10 crore. Face value per share is Rs 10. MindTree's net profit fell 19% to Rs 72.20 crore on 6% growth in sales to Rs 596.30 crore in Q2 September 2012 over Q1 June 2012. MindTree is a global IT and Product Engineering Services Company, with deep knowledge in specific domains.
Market may remain volatile due to F&O expiry
The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month November 2012 series to December 2012 series. The near-month November 2012 derivatives contracts expire on Thursday, 29 November 2012. Next week is a truncated trading week. The stock market remains closed on Wednesday, 28 November 2012, on account of Gurunanak Jayanti.
Market may remain in narrow zone this week
India’s Q3 GDP figures on 30th November will be keenly watched. Among the global cues to look out for are Greece debt situation and US fiscal cliff handling. The indices may have notched up marginal gains for the week but the performance remained more or less subdued save for Wednesday when some gains were seen. The global cues were also hard to come by with a truncated week in US on account of Thanksgiving Thursday and Black Friday. The market didn’t seem to pay too much attention to the ruckus in Parliament as it managed to avoid any losses on Thursday even as the Lok Sabha and Rajya Sabha were adjourned. The Government is locked in a battle with the opposition over the validity of a debate over FDI reforms. The finance minister is in favour of rolling out GAAR from April 2014. Meanwhile, Moody's says the Indian economy is likely to grow at 5.5 % to 6 % this year and is hopeful that things will improve from then onwards. However, if India fails to rein in its ballooning deficit, India could face a downgrade in its ratings. The market could remain in a narrow range for some time as clear triggers are lacking. India’s Q3 GDP figures on 30th November will be keenly watched. Among the global cues to look out for are Greece debt situation and US fiscal cliff handling. On the political front, a meeting of all party leaders of Lok Sabha and Rajya Sabha has been conveyance by Parliamentary affairs minister Kamal Nath; the outcome here will be crucial for Parliament to function.
Markets end week with minute gains; Sensex, Nifty up by 1%
The Indian markets closed with marginal gains and remained in a narrow range throughout the week. The Sensex rose 1.08% and the Nifty was up by 0.94% for the week ended November 23, 2012. Major Headlines: Indian economy likely to grow in range of 5.5% to 6%: Moody's Govt prefers capital infusion in PSU Banks via rights issue Tata Motors expects auto sector to grow by 6-7% this fiscal CBI questions 2 officials in coal allocation scam Govt to OK NMDC's 50% stake buy in Legacy Iron Ore
Market would continue consolidation trend with bias remaining positive
Market would closely eye the developments in the parliament and any sign of rollback in reforms announced so far would be very negative for the market… even otherwise the market is expected to consolidate further with strong resistance above 5700 levels
Tuesday, November 20, 2012
Listless trade ends flat; Sensex slips 10 points
Indian markets resumed the trading session on a positive note but could not sustain morning gains till the end. The Sensex fell by 10 points while the Nifty gained 2 points owing to selling pressure across the board. Headlines of the day: MCX gains over 5% as MCX-SX begins mock trading Gems & Jewellery shares jumps; Vaibhav Gems hits upper circuit City Union Bank hits 52-week high; stk gains over 4%
M&M scales record high
Key benchmark indices closed nearly unchanged after witnessing intraday volatility. The barometer index, BSE Sensex, lost 9.68 points or 0.05%, up about 74 points from the day's low and off about 139 points from the day's high. The market breadth was weak. Index heavyweight and cigarette maker ITC dropped. Another index heavyweight Reliance Industries (RIL) also declined. Auto stocks rose on hopes of likely higher sales this month to be propelled by last week's festive Diwali season, with utility vehicles maker Mahindra & Mahindra (M&M) hitting record high and car major Maruti Suzuki India hitting 52-week high. The Sensex has declined 176.06 points or 0.95% in this month so far (till 20 November 2012). The Sensex has surged 2,874.40 points or 18.6% in calendar 2012 so far (till 20 November 2012). From a 52-week high of 19,137.29 on 5 October 2012, the Sensex has declined 807.97 points or 4.22%. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 3,193.46 points or 21.10%.
Daily News Roundup - Nov 20 2012
Hindustan Petroleum Corporation has decided to put Rajasthan ahead of Maharashtra in its refinery commissioning dates. (BL) Gamesa Wind Turbines India has bagged an order from SJVN Ltd, for the supply of 56 wind turbines of 850 kW capacities each totalling 47.60 MW. (BL) Maldivian Airlines has signed a pact with the Apollo Hospitals to give discounts to each others’ clients. (BL) Karnataka Bank has raised Rs.2.5bn by issuing 10-year, tier-2 bonds. (BL)
Up above the cliff so high!
Living at risk is jumping off the cliff and building your wings on the way down.- Ray Bradbury After stumbling for eight days in a row, the indices look poised to clock some gains today. World markets are upbeat on hopes that the fiscal cliff negotiations in Washington are progressing well especially after Obama met Congressional leaders on Friday. We expected gains in our market on Monday itself though. A rebound in Nifty above the 5630 levels will augur well for the time being. Asian markets are up this morning. Reports state that a better- than-forecast US home sales has brought in some cheer. US indices saw one of their best gains in months with the Dow adding over 200 points.
Positive global cues may lift markets higher
Indian stocks are expected to start the trading session higher as the global cues look supportive. SGX Nifty is also trading 11 points higher Events for the day: Ex date for dividend of Procter & Gamble Hygiene & Healthcare. Ex date for interim dividend of Infotech Enterprises.
Market may open higher on firm Asian stocks
The market may open higher on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicated that the Nifty could gain 11 points at the opening bell. Asian stocks rose for a third day on Tuesday, 20 November 2012 after U.S. housing data boosted optimism that the world's largest economy is recovering. Metal stocks will be in focus as LMEX, a gauge of six metals traded on the London Metal Exchange jumped 2.25% on Monday, 19 November 2012.
Sunday, November 18, 2012
Muhurat Picks
Company Name
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CMP
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Company Name
|
CMP
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Alstom
|
413.95
|
L & T Finance Holdings
|
71.50
|
MRF
|
10137.50
|
Ashok Leyland
|
26.85
|
BHEL
|
231.95
|
Alicon Castalloy
|
74.15
|
CIPLA
|
392.20
|
D.S. Kulkarni Developers
|
74.95
|
Reliance Capital
|
394.25
|
Indoco Remedies
|
67.00
|
HDIL
|
110.45
|
Spice Jet
|
36.35
|
OBC
|
321.30
|
EMCO
|
31.35
|
Siyaram Silk Mills
|
310.40
|
FDC
|
90.00
|
GRUH Finance
|
201.30
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GNFC
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82.00
|
Mayur Uniquoters
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456.85
|
Rossell
|
39.65
|
I L & FS Trans.
|
183.25
|
IDBI Bank
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106.20
|
Tech Mahindra
|
946.60
|
Gabriel India
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26.95
|
Orient Carbon & Chemical
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141.50
|
112.30
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CCL Products
|
314.50
|
Power Grid Corporation
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119.95
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Tata Steel
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383.85
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Alembic Pharmaceuticals
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68.05
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Shasun Pharmaceuticals
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143.55
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United Phosphorus
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110.75
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Persistent Systems
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483.25
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Dishman Pharmaceuticals
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113.50
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Axis Bank
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1225.85
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W h Brady
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95.00
|
Indo Borax
|
92.00
|
33.00
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