Professional Documents
Culture Documents
Volume 2 Issue 6
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Vijay K. Gaba +91-22-24036039 investrekk@gmail.com Thought for the day A man cannot be too careful in the choice of his enemies. Oscar Wilde (Irish, 1854-1900)
Word of the day Moiety (n) One of two equal parts; a half.
(Source: Dictionary.com)
Shri Nrada Uvca On World Toilet Day, a World Bank report says 53% Indian households defecate in open. No one has so far challenged this report. Should all politicians making claims of development, equity and social justice be barred from public life forever for making false claims, lying and misrepresentation of facts?
This report is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person. Readers should seek financial advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. InvesTrekk Global Research (P) Limited does not provide portfolio management, stock broking or any other fund based service. The model portfolios mentioned in this report are merely to illustrate the investment style and strategy recommended in the present times. Please refer to the important disclosures at the end of this report. Copyright 2012 InvesTrekk Global Research (P) Limited. All rights reserved. InvesTrekk Trekking the path less travelled and InvesTrekk are trademarks of InvesTrekk Global Research (P) Limited.
20 November 2013
20 November 2013
Markets overnight
Chg Chg %
India equities Indian equities consolidated after rallying hard for two days. Benchmark indices ended the day with marginal gains. Volumes were close to average. Volatility was little higher. Market breadth was even at 1:1. Realty, PSU banks and infra sectors outperformed the benchmark indices. Hindalco, PNB, JSPL, JPA and SBI were top Nifty gainers. Pharma and FMCG underperformed. BPCL, Sesa Sterlite, Power Grid, HDFC Bank, and Coal India were top Nifty losers. Global equities US stocks fell after disappointing forecasts from Best Buy Co. and Campbell Soup Co. Brazils Ibovespa declined the most in seven weeks on speculation Latin Americas largest economy will remain stalled, making stock rallies hard to sustain. India currency and debt Indian 10yr benchmark yields were lower at 9.02%. Indian rupee appreciated to 62.37/USD level. On Monday short term overnight market volumes were higher at Rs1106.66bn with call money rate at 8.71%. LAF repo outstanding was higher at Rs410.76bn. Global debt US Treasuries fell, pushing the yield on the benchmark 10-year note up from a one-week low, before a speech by Federal Reserve Chairman Ben S. Bernanke that may help gauge the outlook for monetary stimulus. Global currencies The dollar fell for a second day versus the yen on speculation Federal Reserve speakers including Chairman Ben S. Bernanke will reiterate economic growth isnt yet sufficient to trim stimulus. Global Commodities West Texas Intermediate oil fell for a second day as investors weighed the prospect that the U.S. will taper economic stimulus. Crude stockpiles declined after eight weeks of increases, according to a Bloomberg News survey. Rubber declined for a second day as Japans currency rebounded from a two-month low against the dollar, reducing the appeal of yen-denominated futures. Gold fell as investors weighed comments from Fed policy makers about the outlook for stimulus amid a rally in equities thats cut demand for the metal as an alternative investment. Platinum and palladium dropped to one-month lows and silver retreated to the lowest since August.
9.020 62.38
(0.11) (0.06)
CRB Index WTI Fut ($/bbl) Cu Fut ($/lb) Gold Fut ($/oz) Silver Fut ($/oz)
20 November 2013
20 November 2013
20 November 2013 Indonesia contemplating ban on export of ores Indonesia will press on with a plan to ban raw-mineral exports next year, while signaling that the curbs may be amended in practice, according to two officials who addressed a conference in the largest mined nickel producer. If we look at the existing law, yes by 2014 we are sure to implement this, but we also consider the effect and discuss it with parliament, how to deal with this, said Bambang Adi, deputy to the coordinating minister for economic affairs. Dede Suhendra, director of mining at the Energy and Mineral Resources Ministry, told the gathering: We have to appreciate companies that are serious about building smelters. Indonesia is seeking to boost the value of commodity sales, and while a blanket ban is mandated by the 2009 Mining Law, the government may exempt companies that are operating or planning to build processing plants. Nickel is this years worst base-metal performer on the London Metal Exchange amid record stockpiles. Citigroup Inc. raised its nickel forecast yesterday, saying the proposed curbs are being mispriced by the market. We dont talk about export ban, but implementing a law created by government and parliament, Bambang, who helps to oversee mining policy, told the conference in Jakarta. Now, we are in process of how to create regulation below the law. This is still in the process. The government has received 89 proposals for nickel-processing plants with potential capacity of about 50 million metric tons, Suhendra said. The plants will be located in Kalimantan, Sulawesi, Papua and Maluku, he told delegates. (Bloomberg) China central bank vows faster FX reform China's officials indicated on Tuesday how they plan to steer reforms on interest rates, the currency and stock markets, following a top-level party meeting that promised sweeping changes over the next decade. Following up on that, central bank chief Zhou Xiaochuan vowed to quicken the process of full yuan convertibility, which would allow the free movement of capital across China's borders and which is a demand of many of the country's major trading partners. The reforms unveiled by China's leaders were seen as the boldest in nearly three decades as they try to put the world's second-largest economy on a more stable footing after years of breakneck expansion. Zhou's comments were released as part of a public guide book to the reforms, which was on sale in bookshops for 30 yuan ($5). At more than 300 pages, it provides the full text of the Communist Party's decisions on its reform plan and includes an explanation of the changes by President Xi Jinping. It also includes articles by top officials, such as Zhou. The central bank governor promised on Saturday to "pull out all stops to deepen financial sector reforms". (Reuters)
20 November 2013
20 November 2013 Financial Technologies sells its SMX unit for $150 million Embattled trading platform provider Financial Technologies (India) Ltd is selling its Singapore Mercantile Exchange (SMX) unit to Intercontinental Exchange Group Inc for $150 million. Analysts had expected Financial Tech would shed some of its ownerships in exchanges to protect its core trading platforms business as the company faces regulatory scrutiny that has sent its shares down more than 80 percent this year. It will use the proceeds to repay foreign currency loans, the company said in a statement. (Reuters) Power Grid $1.2 billion share sale likely on Dec 3 State-run Power Grid Corp of India's (PGRD.NS) sale of shares, valued at about $1.2 billion, is likely to open on December 3, three sources with direct knowledge of the matter said, as part of the government's drive to revive the divestment programme. The Power Grid offering, which was approved by the Indian cabinet earlier this month, includes fresh issue of company shares and the government's divestment of a 4 percent stake. The government's planned sale of stakes in Power Grid and other state companies including miner Coal India is critical to relieving pressure on public finances that could put the country's investment-grade credit rating at risk. India has targeted raising $6.4 billion from selling stakes in state companies in the fiscal year ending March 2014, but has so far managed about $230 million, as ministries squabble over the timing of the issues and the rupee's fall against the dollar. The Power Grid issue is likely to remain open for investors to bid until December 6, said the sources, who declined to be named as they were not authorised to speak to the media before a public announcement. (Reuters) UP Sugar mills suspend operations Defying a State Government directive, more than two-thirds of the 99 private sugar mills in Uttar Pradesh have issued a suspension notice, expressing their inability to start crushing for the 2013-14 season in the absence of a viable pricing policy. About 65 private mills, including Bajaj Hindustan, Balrampur Chini Mills, Dhampur Sugar Mills and DCM Shriram Consolidated Ltd, submitted the suspension notice to the UP Cane Commissioner in Lucknow on Tuesday. Last week, Chief Minister Akhilesh Yadav had directed mill owners to end delays and start crushing by the end of this month. Left with no other option and for reasons beyond our control, we are constrained to give notice of suspension of operations at our sugar units, the notice said. (BL)
20 November 2013
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