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Punjab and Sind Bank , a PSU Bank, is coming out with an IPO of 4cr shares of Rs.10 each in the price band of Rs.113- Rs.120. The main objective of the issue is to augment capital base to meet future capital requirements and other general corporate purposes.PSB is a mid-sized bank with a network of 920 branches, serving over 5m customers. The bank has over 100 years of banking experience and established relationships with customers, including the Central and State Governments and public sector enterprises and their presence is predominantly in Punjab and other north Indian states. The revenues for FY10 stand at Rs.4326cr and PAT at 506cr , resulting in an EPs of Rs.27. The book value of the bank is at Rs.105, while the most of the mid-cap PSU banks are quoting between 1-1.5 times book value , the pricing of the issue seems okay. Medium to Long term investors can go for this issue. Details of the issue: Issue Open: Dec 13, 2010 - Dec 16, 2010. Face Value: Rs. 10 Per Equity Share. Issue

Despite falling last week on the heels of a poor jobs report—United States unemployment rose to 9.6% and nonfarm payrolls did not rise as highly as forecasted—the U.S. dollar began to firm up against both the euro and the yen. Federal Reserve Bank Chairman Ben Bernanke announced in an interview on 60 Minutes that the latest quantitative easing project might go beyond the original $600 billion projection. These factors suggest, then, that even with this short-term gain, the U.S. dollar will continue to weaken, thus creating uncertainty and skittishness on the part of traders as the market finds its way. Long-term positions, then, could be favorable for those trading against the dollar, though this will be a tough bet. As euro zone finance ministers struggled to protect the euro from the U.S. dollar, Japanese exporters had begun to sell the euro so that they could buy the yen while it remained above 111.000. This happened after the U.S. dollar gained on the yen to reach 82.85 yen over 82

Currently, Indian Capital Markets swinging to the tunes of Global markets & Scams and the Sensex is trading between 19k and 20k, after hitting a 3 year high of 21k a month ago. What does this all mean to an individual investor and what should he do at this point of time - buy, sell or hold? Before we come to any conclusions, let us check out some of recent happenings in and around us. Recently markets have been hit with many scams, some of them directly impacting the markets, like the housing loans and Global events like European crisis, Korean shoot outs and other similar events. These events are causing substantial swings in the markets and the much talked about US Fed’s QE2 program is not having much impact, either. Currently Sensex at 20k , trading at 17.1 x FY11E EPS and 14.6X FY12E EPS, which is at fair valuations. The strong FII inflows and strong earnings growth are providing support to the Indian markets' valuations at 15-18 x  FY12E EPS, above its 12-15x historical ra

Manganese Ore India Limited (MOIL) largest producer of manganese ore and a 'Mini Ratna' PSU, is coming out with an IPO of 33,600,000 Equity Shares of Rs.10 each in the price band of 345-375. MOIL accounts for approximately 50.0% of India's total production of manganese ore and the company hopes to maintain its leadership position in the manganese ore market. MOIL operates seven underground mines and three opencast mines to produce more then 1m tonnes of manganese ore. The company is well positioned to capture the growth potential of the Indian steel industry, due to its track record and strategic location of the mines. The key risk is that the Manganese ore and alloy industry has historically derived demand from the steel industry and hence is directly exposed to the volatility and the cyclicality of the global steel industry. Details of the issue: Issue Open: Nov 26, 2010 - Dec 01, 2010. Issue Size: 33,600,000 Equity Shares of Rs. 10. Face Value: Rs. 10 Per Equity Share.

Despite President Barack Obama's recent election setbacks at home, his trip to India last week was met with a measured amount of success, according to both U.S. and Indian media. One of the biggest announcements that Obama made during his trip was his intention to support securing India a permanent seat in the U.N.'s Security Council . Although the chances of securing a seat are rather slim, Obama's endorsement is a big first step. Most importantly, however, the U.S. president and Prime Minister set an agenda for improved trade between the two countries, signaling new opportunities for Indian and U.S. economic growth. Although many see the President's move to expand trade with India a politically risky one, considering how pervasive the misinformed notion of Indians taking jobs from Americans is, Obama addressed the issue straightforwardly. A recent CNN article quoted Obama as saying: "In 2010, trade between our countries is not just a one-way street of American j

Power Grid Corporation of India ,  India's biggest power transmission company is coming out with follow-on public offer of about 84 cr shares , which comprises a fresh issue of 42 cr shares and adding to that , an offer for sale of 42 cr shares by the President of India. The proceeds will be utilized for constructing country-wide high capacity power transmission corridors. Details of the issue: Issue Open: Nov 09, 2010 - Nov 12, 2010. Face Value: Rs.10 Per Equity Share. Issue Price: Rs.85- Rs.90. Discount of 5% is available to retail investors. The company's second quarter results were quite impressive. It announced a 41 percent increase in its net profit to Rs.651 crore and Rs.1,354 crore in first six months compared to the Rs.1,006 crore in 2009. The annualized EPS for the current year works out to Rs.6 and the FPO price of  85-90 makes the company available at 15 P/E, which is reasonably good. Currently the book value stands at Rs.40 and the offer is made at 2.25 times the

Axis Mutual Fund has launched an open-ended Gold ETF, Axis Gold ETF. This is yet another Gold ETF similar to already existing Gold Bees and other ETFs. During the new fund offer (NFO) period, retail investors can apply for minimum of Rs.5,000 and multiples of Re.1. After the NFO period, the fund will be traded on the National Stock Exchange and traded like equity shares. The fund will be open for subscription from October 20 to November 3. Why Gold ETFs ? Gold ETFs lets you buy Gold without the necessity of taking physical delivery and without the associated risks of physical storage and impurities. Is Gold a good investment opportunity even at this prices? Gold has seen a steady rise since last 5 years with an annualized return of about 24%, currently trading about Rs.2000 per gram. But over 15-20 year period it tends to average less than 10% . Currently high price rise in Gold prices is due to global risk-aversion and supply constraints, as production has dropped. Is this price ris

Coal India Limited, a Navratna PSU, is entering the capital markets with a public issue of 63 crore equity shares. This issue, slated to be the largest primary market offering in the history of the Indian Stock Markets, will garner around Rs. 15,000 crore. Coal India is the world’s largest coal producing company, as well as the world’s largest coal reserve holder. The company has 471 mines across the country and manages over 80% of India's annual coal demand. Details of the issue: Issue Open: Oct 18, 2010 - Oct 21, 2010. Issue Size: 631,636,440 Equity Shares of Rs. 10. Face Value: Rs. 10 Per Equity Share. Issue Price: Rs.225 - Rs.245 Per Equity Share. Listing At: BSE, NSE. Fundamental Details: For FY10, the company reported total income of Rs. 52,592 crore with net profit of Rs. 9,834 crore, resulting in an EPS of Rs. 15.5. Comparing with NMDC, around a P/E of 16-17, the announced price band  of  Rs.225-Rs.245, is a  reasonably good price to invest for long term investors. A 5% d

Both the premier exchanges BSE and NSE are to kick off pre-open call auction section, soon. The pre-open call auction session will be for 15 minutes between 9 am and 9.15 am. The session would work as follows: The first eight minutes will be reserved for order entry, modification and cancellation, the next four minutes will be kept for order matching and trade confirmation. The remaining three minutes will be the buffer period to facilitate the transition from pre-open session to the normal market. Initially, the call auction session will be applicable for Nifty-50 scrips and Sensex-30 scrips. More scrips will be gradually added to the list. Normal trading in other stocks will begin as at 9.15 am. What is this pre-open session all about? Indian markets have seen huge volatility, particularly during open trades. In the past few years, indices have hit the down circuit quite a few times and up circuit once. Call auction at pre-open will help arrive at a proper price, removing vola

The international derivatives exchange EUREX , jointly operated by Deutsche Bourse AG and SIX Swiss Exchange, organizes markets globally. Since 2007, Deutsche Bourse holds a five percent stake in the Bombay Stock Exchange . EUREX is home to the Euro zone interest rate and equity index benchmark derivatives. EUREX will be the first exchange to launch Indian equity index futures and options outside India. Offering futures and options on one single platform allows market participants to use combined trading strategies (for example volatility trades) and permits cross margining between the two contracts. With the launch of SENSEX derivatives EUREX, it provides new opportunities for customers seeking an appropriate hedging tool for Indian exposure or arbitrage trading EUREX SENSEX Futures and Options will be denominated in U.S. dollars and settled in cash. More details about the contracts are available at Sensex Futures And Options

Eros International Media is entering the capital markets to raise Rs. 350 crore through an issue of 2cr equity shares.The main objective of this issue is for acquiring and co-producing Indian films and general corporate purposes. This company is part of the Eros group which has been in the entertainment business for over three decades. The company is well poised to tap the opportunity presented by Indian Media and Entertainment Industry driven by rising regionalization and digitization through new distribution platforms like Digital Cable, DTH & IPTV. Distribution and sale of media content online also offers a huge potential for Eros. Details of the issue: Face Value: Rs. 10 Per Equity Share. Issue Price: Rs. 158 - Rs. 175 Per Equity Share. Market Lot: 40 Shares. Listing At: BSE, NSE. Issue Date: Sep 17, 2010 - Sep 21, 2010. Eros International Media is currently valued at 18 x-19 x on FY10 EPS of Rs 8.8 and Rs 9.1 based on the price band of Rs 158-175, which is cheaper than that

Reliance Mutual Fund launches its Nifty ETF namely Reliance Index Fund - Nifty Plan. We already have Nifty Bees   & other ETFs from leading fund houses and Reliance Mutual Fund is the latest fund to join the bandwagon. As with any other Index Fund, the objective of this fund is to replicate the composition of the Nifty, with a view to generate returns that are commensurate with the performance of the Nifty. Minimum Investment is Rs.5000 and both Growth & Dividend options are available. The entry load is nil and the scheme will be open till 23 Sep 2010. SIP facility is available with a minimum investment of Rs.500. Why should one invest in Index Fund? Index Funds are the simplest of the mutual fund products to understand. S&P CNX Nifty is a true representative of Indian Economy, since the constituents are blue chip companies which are the most liquid and widely owned companies. This scheme provides an opportunity to participate in India's growth story by investing in a

Career Point Infosystems has come out with an IPO of Rs. 115 crores for its expansion plans. The company provides tutorial services for All India pre-medical and pre-dental tests and for engineering, medical entrance exams such as AIEEE, IIT-JEE also. The company has its presence through 33 centres mainly in North, East and Central India.The main objects of the issue is to meet expenses towards general corporate purposes and to construct and develop an integrated campus facilities. Details of the issue: Issue Size: Rs. 115.00 Crore. Face Value: Rs. 10 Per Equity Share. Price Band: Rs. 295 - Rs. 310 Per Equity Share. Market Lot: 20 Shares. Issue Open: Sep 16, 2010 - Sep 21, 2010. To invest or not? The net profit for FY10 was Rs. 18 crore with an EPS of Rs. 13.2 on an equity of Rs. 14.42 crore. The company is expects its business to grow at the rate of 30% with margins of about 33%. There is always a market fancy for education stocks and also, the company has allotted 6.56 lakh shares

IDBI Mutual Fund has launched Nifty Junior Index Fund NFO, an open ended equity scheme tracking the CNX Nifty Junior Index. The investment objective of the scheme is to invest only in and all the stocks comprising the CNX Nifty Junior Index in the same weights of these stocks as in the Index, to replicate the performance of the Returns of CNX Nifty Junior Index. Scheme Details: Terms of Issue: Offer for units of Rs.10 per unit during the NFO and the minimum subscription amount is Rs.5000. Load structure: Entry load: Nil; Exit load of 1% for Redemption on or before 1 year from the date of allotment. Plans on offer: Growth Plan and Dividend Plan with option for dividend payout and re-investment. SIP facility is available. The offer is open from Sep 3 - Sep 15 2010. So, what is this Nifty Junior Index Fund is all about? The next list of liquid securities after CNX Nifty is the CNX Nifty Junior and it consists of 100 stocks selected based on liquidity. Also we don't have that many sch

Reliance Mutual Fund has come out with a New Fund Offering - Reliance Small Cap Fund with a objective of getting long-term capital appreciation out of predominantly investing in small cap companies. The scheme has been benchmarked against BSE Small Cap Index. The minimum investment is Rs.5000 and SIP facility is available with a minimum amount of Rs.1000.While the entry load is nil, exit load of 2% would charged if redeemed within 12 months of the investment. The scheme has both dividend and growth options available. The issue is currently open and it closes on 9 September 2010. So, to invest or no to? The fund is a very aggressive small cap oriented fund which intends to invest in small sized companies. It is a high risk - high return oriented fund characterized by volatility which is expected to be smoothened out by staying invested over a longer term horizon.Although small-cap stocks are often perceived as risky relative to their large-cap counterparts, they have other characteris

Mobile Trading is to kick-off soon in Indian Capital Markets, as the market regulator SEBI has given approval for the same. Currently, many brokers are providing web-based mobile trading, but the current form of mobile trading using wireless technology (including laptops with data card that use internet protocol), would make things lot easier for active traders. Both the stock exchanges BSE and NSE are ready to provide the facility as soon the brokers set up their systems. The applications for mobile trading can be downloaded by the customers from their brokerage websites. The procedures for trading are same as that of online trading - on submitting an order to buy or sell shares, traders will be provided with the order confirmation and similarly modification or cancellation facilities will also be provided. The traders would be aware of risks and difficulties involved in online trading, similarly they should also be aware of the possible risks involved in mobile trading too. Hope

Gujarat Pipavav Port which has developed and operates APM Terminals Pipavav , is coming out a public issue of 1.1 crore shares in the price band at Rs 42-48/share. The company promoted by APM Terminals Mauritius, has multi-cargo and multi-user operations. Other major shareholders include IDBI Bank and IDBI Trusteeship services. Details of the issue : Issue Open: Aug 23, 2010 - Aug 26, 2010. Face Value: Rs. 10 Per Equity Share. Issue Price: Rs. 42 - Rs. 48 Per Equity Share. Listing At: BSE, NSE. Fundamental Details: The majority of the proceeds of this IPO will be used towards repayment of loan of about Rs.300 crs. By doing this the Debt/Equity of the company is expected to significantly reduce from 4.7x in September 2009 to 0.9x in CY12. The reduction in interest costs will help improve the profit margins significantly. Currently the Book Value of the company is Rs.10 and at a price of Rs.48, the issue is done at 5 times the Book Value , which is expensive. Though there would be listi

M utual funds are excellent means to participate in equity markets and we have seen some of the mutual fund schemes like HDFC Top 200 which have given exceptional returns over 3-5 year periods. Similarly, let us look some of the Top Systematic Investment Plans in Equity Funds which have given consistent returns over the past few years. Why invest through SIP? Systematic Investment Plan (SIP) a good plan offered by mutual funds to help you save systematically and regularly.  SIP makes you to take part in the equity markets without trying to second-guess its movements and  one need not worry too much about ups and downs of the markets. So how the investments through SIP have performed? Check out the table below, which shows the 1,3 and 5 year SIP returns of HDFC Equity, Reliance Growth, HDFC Top 200 and Reliance Regular Savings . The 3 year returns are 22-28% per annum and 5 year returns are 20-21% p.a as on date. As you see above, the returns are exceptionally good, if invested with a

Reliance Regular Savings Fund is one of the many schemes from Reliance Mutual Fund , which have performed well since the last few years. The scheme is benchmarked against BSE 100, whose 5 year return is 18% whereas the fund's % year return is about 25%, which clearly exhibits its outpeformance. Snapshot of the fund: Reliance Regular Savings Fund is an open-ended fund whose primary objective is to seek capital appreciation and consistent returns by actively investing in equity and equity related securities. The entry load is nil and exit load is 1% if redeemed withing one year. The minimum investment is Rs.500 and SIP is available. The fund size is about 3000 cr, which is pretty much okay like any other  major schemes. Performance: This scheme was launched in 2005, and currently the NAV of the Growth scheme of this fund stands at Rs.30.The 5 year return is 24% p.a which is spectacular by any means. The 1 year and 3 year returns stand at 31% and 21% respectively, which speaks of it

Bajaj Corp Ltd has come out with an IPO of 45 lakh shares of Rs.5 each in the price band of Rs.630-Rs.650. Bajaj Corp is India’s one of the largest producer of hair oils and some of its brands include Bajaj Almond Drops, Brahmi Amla, and Jasmine Hair Oil. The proceeds of this IPO is to be used for diversificatin by foraying into new products, supported by heavy spending on advertising and promotion. Details of the issue: Issue Open: Aug 02, 2010 - Aug 05, 2010. Issue Price: Rs. 630 - Rs. 660. Issue Size: Rs. 283.50 - 297.00 Crore Market Lot: 10 Shares. Listing At: BSE, NSE. Fundamental updates: For FY10, the company's revenues were Rs. 330 crores and its net profit was Rs. 84 crores, thereby earning an EPS of Rs. 33. At the upper price band the P/E works out to about 20 times. Currently most of the FMCG companies are trading in the P/E band of 25-30 and over long term FMCG companies have performed well. Though the issue is not cheap,  it offers decent upside over medium to long

Aster Silicates recently came out with an IPO of about 50 lakh equity shares at a price of Rs.118 and got listed around 130.While the markets were rangebound, the stock went up 90% before closing at 205. The stock witnessed 241 bulk deals on NSE, with the total volume exceeding 9.6 crore shares on both the BSE and NSE exchanges.The volumes were 20 times more than its issue size and the total delivered quantity was at 41.3 lakh shares. Today the stock was locked at upper circuit for most of the day at Rs.246, which came off later in the day. So what's the buzz? Aster is engaged in the business of manufacturing of sodium silicate, primarily used by the FMCG, tyre and pesticides industry. The financial performance is not much encouraging, as the company's FY10 EPS was Rs. 5 and the book value is Rs. 23. The PE multiple at current market price works out to 50 times, which is definitely high, as such chemical companies trade about PE of not more than 5. This is yet another case of

SKS Microfinance has come out with an IPO of of 1.68 cr equity shares of Rs.10 each, in the price band of Rs. 850 to Rs. 985 per share. The company is basically an NBFC, with a network of 2,029 branches in 19 states, catering to 67.8 lakh women borrowers and is the largest micro finance institution in India. Details of the issue: Issue Open: Jul 28, 2010 - Aug 02, 2010. Issue Size: 16,791,579 Equity Shares of Rs. 10 each. Issue Price: Rs. 850 - Rs. 985 Per Equity Share. Market Lot: 7 Shares. Listing At: BSE and NSE. Fundamental Updates: The company has reported an EPS of Rs.27 and has a book value of about Rs.145. At the current offer price the stock would be trading at 30 P/E and 6 times the Book value. Though the topline as well as bottomline of the company has witnessed the CAGR of more than 100% from FY08 to FY10, the offer price is expensive. There is a lot of hype being created for this issue, mainly due to Infosys - Narayana Murthy and George Soros - Quantum fund being PE inv

Engineers India (EIL) is making a follow-on public offer (FPO), for 3.37 crore equity shares of Rs.5 each, in the price band of Rs. 270 to Rs. 290 per share. EIL,is one of the leading engineering consultancy company, has its focus on oil and gas and petrochemicals industries. Details of the issue: Issue Open: Jul 27, 2010 - Jul 30, 2010 Issue Size: 33,693,660 Equity Shares of Rs. 5. Issue Price: Rs. 270 - Rs. 290 Per Equity Share Market Lot: 20 Shares. Listing At: BSE, NSE. Discount of 5% is available for retail investors. Some Fundamentals: For FY10, the company reported net profit of Rs. 444 crore, resulting in an EPS of Rs. 13.19 on the present equity of Rs. 168 crore. The company is expected to report FY11 EPS of about Rs.15. At the upper end of the price band of Rs. 290, the issue is priced at a PE multiple of 19.33 times, based on FY11 earnings estimates. Though the current price of EIL is around Rs. 310, the issue is not terribly expensive. Hence big listing gains cannot be exp

Once couldn't find better time to write about this top performing fund than now, as its Net Asset Value (NAV) hits all-time high . Yes ! HDFC Top 200 Fund which has outperformed most of the funds in its category, reaches NAV of Rs.200. Though the fund has dividend option and you would have got regular dividends, we are analyzing the performance of the Growth option. The interesting point to note here is that, the NAV of this fund was Rs.170 when the Sensex hit all-time high of 21,000 in 2008 and now the NAV is Rs.200. Which means even if you had invested in this fund at the peak of 21,000, you are still making good 18% returns above that, while the Sensex is still at 18,000. Snapshot of the fund: HDFC Top 200 is an open-ended fund which predominantly invests in BSE 200 stocks, with a higher exposure to Midcap stocks. The entry load is 0% and exit load of 1% if redeemed withing 1 year, after which no exit load. Though the fund size is quite large of about 8000cr, one needn't wo

Along with recent launches of many Gold ETFs,  here comes another one from   ICICI Prudential Mutual Fund ,  namely ICICI Prudential Gold ETF. We have already seen the benefits of owning Gold ETFs like Gold Bees   and adding to that,  here are some of the key features: Liquidity : Unlike jewellery or coins/bars, ETF units can be liquidated easily to benefit from rise in price of gold. Cost Efficiency : Costs lower than buying, storing and insuring physical gold. Convenience : Post NFO: Buy and sell on the exchange.Can be bought and sold in small quantities – as low as 1 unit (approximately equivalent to 1 gram of gold). Purity : 99.50% or higher. Minimum ApplicationAmount (NFO & Post NFO): Rs.5000/- and in multiples of Re 1 during NFO.Investors can buy or sell units (minimum 1 unit) on a continuous basis on the National Stock Exchange or the Bombay Stock Exchange. The issue is open till 29 July ,2010. Why one should invest in Gold ? The word ‘Gold’, in India, invokes a number of em

As we all know Nifty futures is available for trading  from 19 Jul 2010 in Chicago Mercantile Exchange CME, more details have come into flow.  Two futures contracts, namely E-mini Nifty Futures and E-micro Nifty Futures would be available almost 23 hours all trading days. The first one will be valued at $10 times the current value of nifty index on the NSE, the other one, will be valued at $2 times the nifty index value at that time. The interesting point is, since nifty futures is also traded on the Singapore Exchange (SGX) ,  traders can take a position on any of the two bourses and offset it at the other exchange and this is because SGX has mutual offset agreement with CME. It would provide good arbitrage opportunities for institutions and traders having access to both the exchanges. The live rates can be accessed from  E-Mini Nifty Futures  and  E-Micro Nifty Futures  .

The Union cabinet of the Indian government unveiled a new rupee symbol joining the club of other international currencies, such as, dollar, pound sterling, euro and the yen. The new currency symbol reflects India’s aspiration to become a leading player on international financial markets. The new symbol represents: An amalgamation of the Devanagari ‘Ra’ and the Roman capital ‘R’ without the stem. The new symbol has a lot of similarities with the euro and many felt it should have been more Indian. But there is no doubt that this symbol make the rupee more internationally recognizable.Proper marketing campaign is necessary to create an awareness and to bring it to everybody's notice. On the international front, India’s status in international financial markets will go up one notch and and will bring some visibility to the Indian currency.

HDFC AMC has launched an NFO with the name 'HDFC Gold Exchange Traded Fund'. This is yet another Gold ETF, apart from existing schemes like Gold Bees , Rel Gold etc which are already traded in NSE. The fund will invest in 90-100% of assets in Gold Bullion. Some of the features include: The fund will be listed in NSE and can be easily bought and sold like any other stock on the exchange through terminals spread across the country. The minimum investment is Rs.5000/- and the NFO is open till Jul 23 2010. Can be bought/sold anytime during market hours at prices that are expected to be close to actual NAV of the scheme. Post-listing, the minimum purchase would be 1 unit . Can one invest in this NFO? Gold has been one of the biggest outperformers of most of the asset classes, recently and can be still considered for investing.  Hence, investors who don't have exposure to Gold ETFs, can consider investing in this fund. There are many other Gold ETFs like Gold Bees, Rel Gold et

With Indian economy moving on an up cycle during FY10, FIIs infused $20bn in Indian capital markets, and retail participation has also improved through direct investments through stock brokers,  insurance and mutual fund route. There is a significant jump in number of online trading by retail traders and this trend is likely to continue its upward journey. So let us throw some light on this brokerage sector, albeit cyclical in nature. Corporate fund raising activity (through QIPs, IPO, and debt syndication) has gained momentum during FY10, along with the secondary capital market volumes which has clocked a growth of 60% yoy.  This has aided capital market intermediaries’ fee-income substantially. Operating cost of capital market intermediaries is largely variable in nature but still cost effective distribution model - franchisee and online trading through portals helps in keeping a check on operating cost. And, thus operating and net profit margins are likely to remain stable. India

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. 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 hou

Global 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-

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. Hence before calculating your stock returns, check out how much dividends you have received to get the exact returns. Dividends do matter.

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 I

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 retur

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 hi

Rajesh 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 p

Jaypee Infratech has come out with a public issue of 6 crore equity shares in the price band of Rs.102 to Rs.117 per share. The company is engaged in the development of the Yamuna Expressway and related real estate projects which is a 6 lane Expressway between Noida and Agra, with concession period of 36 years and also 1235 acres of land as real estate development. Details of the Issue: Issue Open: Apr 29, 2010 - May 04, 2010 Issue Size: Equity Shares of Rs. 10. Issue Price: Rs. 102 - Rs. 117 Per Equity Share. Market Lot: 50 Shares. Listing At: BSE , NSE . To apply or not to apply? The Yammuna Expressway is expected to be complete by 2011 and has Toll Collection Rights for the next 36 years. Apart from this the company is involved in Building World Class Real Estate Development spread over of 1,235 Acres. Some of the positives include , JP Group’s expertise in executing Large Infrastructure projects and Unique Business Model – Tool Revenues and Real Estate Revenues. But the valuatio

Have you ever experienced having loans in the bank? Do you have credit cards? Well, it is normal for humans to have a debt. There are times that we are in the hard roads of life and need the help of others especially when it comes to financial problem. Sometimes we are short in money and needed to borrow money from other people or have some credit card account, however, if you don’t keep track with your debt, time will come that you will not be able to pay them and you cannot borrow from them anymore. Therefore, in order to keep in track with our debt we need something that can help us. There are many solutions that you can find, you can ask a specialist to help you, but this one will cost you much. With the help of debt calculator you can keep yourself with your debt without paying and wasting too much money and besides using debt calculator is very much easy. So, how can debt calculators help you with your debt? As what I have said awhile ago, it is normal to one’s person to have a

Satluj Jal Vidyut Nigam (SJVN) Limited is coming out with an IPO of 415,000,000 equity shares of face value Rs. 10 each. The company is a hydroelectric power generation company, a 75:25 unlisted joint venture between the Government of India (GOI) and the Government of Himachal Pradesh (GOHP). Currently, the company is engaged in designing, planning, developing, examining, organizing, executing, operating, as well as maintaining hydroelectric power projects. Details of the Issue: Issue Open: Apr 29, 2010 - May 03, 2010. Issue Price : Rs.23-Rs.26.(Retail Investors to get 5% discount) Market lot: 250 shares. So what's in store for retail investors in this IPO? The expected EPS for current year is around Rs.2.5 and the Book value is at Rs.16.The stock is cheaper compared to its peers, but the issue price could have been priced lower. But still this is a good issue to apply for long term. Fundamentally good stock to buy & hold for long term and not for listing gains.

ARSS Infrastructure recently came out with an IPO at a price of Rs.350. The issue was well subscribed and listed spectacularly at Rs.650. Currently the price is around Rs.1300, up more than 300% , so what's the buzz? To start with, the IPO pricing was done wisely and it left a lot on the table for the investors. The company recently declared the current year's earnings and is well within market expectations. They have done about Rs.60 earnings per share and current price it is well priced at 20 times. So moving forward, the company is expected to do about an EPS of Rs.110 for FY11 and considering at the industry average P/E of 15 times, the stock is more or less priced in. Hence one can book profits in ARSS Infra considering its sharp run-up from 700 to current levels of 1300 and wait for substantial correction before re-entering this stock.

It is earnings season again and various institutions and brokerages have come out with their Earnings forecast for Sensex 30 companies for FY11. Most of them have come out with their estimates in the range or Rs.1100-Rs.1250 for FY11 and Sensex target of about 21000, which is about 20% up from current levels of 18k. Number crunching: CLSA – FY 11 EPS Rs 1,046. Morgan Stanley – FY 11 EPS Rs 1,232. Deutsche Bank – FY 11 EPS Rs 1,10. UBS – FY 11 EPS Rs 1,146. Edelweiss – FY 11 EPS Rs 1,080. Merrill – FY 11 EPS Rs 1,100. What does these numbers indicate for an investor? Looking at the above numbers , the consensus EPS is around Rs.1100 and the Sensex at the higher P/E band of 20, would be at 21k, which is not totally unjustified considering higher growth and EPS for the year FY12.Hence any sharp decline would be a buying opportunity, particularly below 15 times forward earnings i.e., below 15k. But this correction isn't coming yet and keeps elusive.Instead of timing the market, one

National Mineral Development Corporation - NMDC is Coming out with its FPO on March 10. The issue is open from March 10 - March 12. The Promoter, Government of India, is to announce the price band on March 9, one day before the issue opens. Let us do some number crunching on its past performance, so as to arrive the expected price band. For FY09, the total income of the company was at Rs. 8,575 crores with PAT at Rs. 4,372 crores, resulting in an EPS of Rs.10 with a Book value of Rs. 29. For FY10, the EPS estimates are at Rs.10 and book value of Rs. 39. The other large cap stocks in this sector are Sesa Goa and GMDC which quote at 19 P/E and 18 P/E, respectively. Sesa Goa at Current price quotes at Price to Book Value of 7 and GMDC at P/BV of about 4. Hence going by these numbers, NMDC between 250-270 would be a reasonably price to apply.

NSE has launched a desktop application 7FM Financial Money Manager which helps investors to track their portfolio investments powered by NSE Data right from their desktop. This application is developed through Fidoh and contains lots of features. The following components are required to run the application. 1.Windows Installer 3.1 2.dotNET Framework 3.5 SP1 3.SQL Server Compact 3.5 The features are user friendly and give complete details about anyone's portfolio. The application can be downloaded from Fidoh. Just give it a try and post your feedback and comments.

United Bank of India , a PSU Bank is coming out with an IPO of 50 million shares of Rs.10 each at a price band of Rs.60- Rs.66. The bank has a well established network of about 1500 branches with 16,000 employees. The bank is mainly into retail , corporate / wholesale, priority sector, treasury operations and other services such as agency functions for insurance and mutual fund distribution. Details of the issue: Issue Size: 50,000,000 Equity Shares of Rs. 10. Face Value: Rs. 10 Per Equity Share. Price Band: Rs. 60 - Rs. 66. Issue Open: Feb 23, 2010 - Feb 25, 2010 Minimum Bid Quantity: 100 Shares. Listing At: BSE, NSE. The bank has made a very good improvement during the last five years of its operation. It is clearly one of the fastest growing banks in the industry. The book value per share stands at Rs 94.75 and even at the higher end of the price band, the price to book value (P/BV) ratio stands at 0.7. Comparing with the other smaller PSU Banks such as Corporation Bank, Andhra Ba

L&T Finance Limited has come out with Public Issue of Secured Redeemable Non- Convertible Debentures (NCDs) of face value of Rs.1,000 each aggregating to Rs.250 Crs with an option to retain over-subscription upto an additional Rs.250 Crs, aggregating to a total of Rs.500 Crs. The offer period is between 09th February 2010 to 22nd February 2010. The Debenture has been given Credit Rating - AA+ by CARE and ICRA. Details of the Isuue: Face Value per NCD Rs. 1,000. Minimum Application Size 10 NCDs for Retail category. 101 NCDs for QIB and NII categories. There are 2 options: I - Interest payment Semi-annual with a coupon rate of 8.40 % p.a. II - Interest payment Annual with a coupon rate of 8.50% p.a. Redemption Date / Maturity Period 36 months from the date of allotment. The NCDs are to be listed in NSE and BSE . Considering current bank Fixed Deposit rates of around 7%, this debenture is a better option to park some funds in it.

A new stock exchange, United Stock Exchange of India , has been promoted by Bank of India, Canara Bank, Andhra Bank, Bank of Baroda, Allahabad Bank, Indian Overseas Bank and Oriental Bank of Commerce jointly with MMTC. Other shareholders include Standard Chartered Bank, Federal Bank, TCS and STCI. This exchange is expected to come on line this month and is the fourth Currency Futures exchange after BSE, NSE and MCX-SX. For offloading the rest of the stake, the exchange is understood to be in talks with Chicago Mercantile Exchange , the world’s largest financial exchange. Currently, volumes on the existing currency futures exchanges are just $0.5 billion which is 1/10th of the $50-billion volume on the over-the-counter currency forward market.The objective of this new exchange is to get different constituents of the market onto the currency platforms, and thereby increase participation. Currently, participation comes from the stock and commodity market players with many brokers, includ