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Showing posts from April, 2019

NSE Invest-O-Cast Exclusive Investor Playlist

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India’s famous investor education podcast series now gives you a curated playlist. Hosted by the popular Hrishi K, sit back & handle your finances with all the great investment tips and tricks only on NSE Invest-O-Cast powered. This financial podcast series is helping you exactly how to get started with investing When Rajesh Verma, 26, got his first job, one of many firsts that he did was, making a financial plan. He charted out a list of his aspirations, goals and how much wealth he wanted to create for his pre and post retirement life. To achieve his goal, Verma started reading about sound financial planning, saving, investing, different instruments of investing, risk-reward ratio, how to invest in equities, equities vs traditional investments and more. Like Verma, thousands of early and even seasoned investors look for expert advice and words of wisdom that can help them in understanding the nuances of investing, wealth creation, calculate the real number

Hero MotoCorp Q4 PAT tanks 25% YoY: should investors buy, sell or hold?

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Citigroup maintained its buy rating on Hero MotoCorp with a buy rating post March quarter results but slashed its target to Rs 3250 from Rs 3350 earlier. Most of the global brokerages maintained their ratings on Hero MotoCorp but Citigroup and CLSA slashed their respective 12-month target prices after the two-wheeler maker reported 25 percent YoY fall in the net profit to Rs 730.32 crore as against Rs 967.4 crore in the same period last year. Revenue from operations fell 7.92 percent to Rs 7,885 crore year-on-year. Hero MotoCorp sold 17.81 lakh units in January-March quarter 2019, lower than 20.01 lakh units sold in the corresponding period last fiscal. Numbers are largely in line with estimates. CNBC-TV18 poll estimates for profit were Rs 727.5 crore on revenue Rs 7,763 crore for the quarter. At the operating level, EBITDA (earnings before interest, tax, depreciation, and amortisation) plunged 22 percent year-on-year to Rs 1,069.3 crore in Q4. Margin co

ABB India`s valuation is racing ahead of its earnings growth forecasts

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ABB India Ltd’s shares have risen about 22% since end-February. It seems investors’ fear of a drop in revenue and profit, following the sale of parent ABB’s global power grid business to Japan’s Hitachi Ltd, have been allayed. Remember the shares had fallen about 13% when the blockbuster $11 billion deal was announced in December. So, what has changed since February? One positive is that the Swiss-Swedish parent’s plan to sell the business through a demerger is now being seen as a transparent mechanism. This eliminates the fear of undervaluation of the India business, since the subsequent listing of the demerged entity will have a market-determined valuation. A demerger also avoids high tax outflows, which would have occurred in the case of a direct slump sale. A report by JM Financial Services Ltd cites the examples of Crompton Greaves (split into CG Power and Crompton Consumer) and Areva T&D (split into Alstom T&D and Schneider Electric) as precedents.

Global investors in talks to invest in India`s Reliance Jio infra investment trusts.

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Global investors are in talks with Reliance Industries Ltd to invest in two infrastructure investment trusts set up to own Reliance Jio's tower and fibre assets, the Economic Times newspaper reported on Tuesday, citing people aware of the matter. Reliance, once dependent on its industrial businesses, reshaped the Indian telecoms industry when it launched its Jio telecoms unit in 2016, taking on rivals such as Bharti Airtel and Vodafone Idea with its cut-throat pricing. Canadian pension funds CPPIB, Ontario Municipal Employees' Retirement System (OMERS), British Columbia Pension Corporation (BCPC), sovereign wealth fund Abu Dhabi Investment Authority (ADIA), investment firms Mubadala and Singapore's GIC, and Germany's Allianz SE are among the potential investors, the newspaper reported. Earlier this month, Reliance transferred its fibre and tower undertakings to separate companies to move liabilities worth 1.07 trillion rupees ($15.33 billion) out of

Gold gains as disappointing China data bruises Asia stocks

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Gold rose on Tuesday as a lacklustre Chinese manufacturing activity data pushed Asian shares down, rekindling concerns about the health of the global economy. Meanwhile, investors braced for a raft of euro zone data and U.S. Federal Reserve's two-day policy meeting, which begins later in the day. Spot gold was up 0.2 percent at $1,282.08 per ounce at 0318 GMT. U.S. gold futures were up 0.2 percent at $1,283.90 an ounce. "There is a broad bearish sentiment across Asia market opening this morning as a very disappointing China manufacturing PMI triggered a sell-off in currencies and emerging markets and equity markets," said Margaret Yang, an analyst with CMC Markets in Singapore. Reading on the official Purchasing Managers' Index (PMI) in for manufacturing unexpectedly fell to 50.1 in April from March's reading of 50.5 stoking concerns about the economic state of China and pressuring Asian equities lower. Gold is generally used by investo

US to ensure adequate oil supplies in global market: Mike Pompeo

US Secretary of State Mike Pompeo said that the US would seek to stabilise global oil market after Washington's decision not to extend sanctions waivers for Iran oil purchase. "We are convinced we can make sure the markets are adequately supplied. We are continuing to work on that," Xinhua quoted Pompeo as saying to the audience during an event by The Hill news outlet on Monday. The US would cooperate with other alternative suppliers home and abroad on the matter, he added. The Trump administration announced on April 22 that the US sanctions would be reimposed on all countries that import Iranian oil since May 2, leading to turbulence in global oil markets. US President Donald Trump urged the Organization of the Petroleum Exporting Countries (OPEC) and top oil supplier Saudi Arabia to lower oil price on Friday. "Gasoline prices are coming down. I called up OPEC, I said you've got to bring them down. You've got to bring them down," T

Why M&M Financial Services` steady performance didn`t impress investors

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For all the troubles non-banking financial companies (NBFCs) have faced in the past one year, Mahindra and Mahindra Financial Services Ltd (MMFSL) has done well to report profit growth before provisions and tax of 28% year-on-year for the March quarter. But investors seemed hardly impressed with the results of the firm, which is engaged primarily in financing the purchase of new and pre-owned vehicles, construction equipment and SME (small and medium-sized enterprises) financing. MMFSL’s shares have declined 4.5% after the company declared its March quarter results last week. Despite decent profit growth, investors appear worried about the lack of growth in disbursements. Total disbursements for the March quarter declined by about 1% year-on-year. “Since the onset of the liquidity crisis in Sep’18, MMFSL has curtailed SME disbursements, which were experiencing over 30% growth rates up until 2QFY19," said analysts at JM Financial Institutional Securities Ltd. Th

HDFC Life outperforms peers, SBI Life gives tough fight on valuations

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HDFC Life Insurance Co. Ltd’s profitability metrics for FY19 outshone those of its closest rivals SBI Life Insurance Co. Ltd and ICICI Prudential Life Insurance Co. Ltd. HDFC Life reported growth of 13% in annualized premium equivalent (APE), slower than its past performance. But its rival ICICI PruLife reported no growth at all. SBI Life did marginally better with 14% growth in APE.. But its value of new business margin of 24.6% was superior compared with SBI Life’s 17.7% and ICICI PruLife’s 17%. But there is no secret sauce here. All insurers have realized that growing the margin-friendly protection business is key to better profitability. HDFC Life has just been more successful than others in pushing plain term plans. In FY19, more than a quarter of its new business came from selling plain protection products. ICICI PruLife is far behind with a share of 9.3%, while SBI Life had 12% of new business coming from term plans. So, why are analysts wary on HDFC Li

Ambuja Cements to report Q4 earnings today; here's what brokerages are expecting

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Emkay Global Financial Services expects Ambuja Cements to report volume growth of 4 percent YoY. It remains underweight on Ambuja Cements. Cement major Ambuja Cementsis scheduled to report its March quarter earnings on April 30. According to Prabhudas Lilladher, the company is expected to report net profit of Rs 312 crore, up 14.8 percent year-on-year, (up 29.2 percent quarter-on-quarter). Net Sales is expected to increase 6.9 percent Y-o-Y (up 6.9 percent Q-o-Q) to Rs 2,954.5 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to jump 12.1 percent Y-o-Y (up 49.5 percent Q-o-Q) to Rs. 456.7 crore, the report added. ICICIdirect expects Ambuja Cements to report net profit of Rs 294.8 crore up 8.5 percent year-on-year (down 45.1 percent quarter-on-quarter). Net Sales is expected to increase 4.6 percent Y-o-Y (up 4.6 percent Q-o-Q) to Rs 2,995.2 crore. EBITDA is likely to rise 1.7 percent Y-o-Y (up 27.7 percent Q-o-Q) to Rs 515.8

A morning walk down Dalal Street | Nifty must breach 11,800 for bullish sentiment to continue

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Nifty closed above 11,750 and formed bullish candle on daily charts. The index has to clear its immediate hurdle of 10,800 for the bullish sentiment to continue. Last week was volatile for Indian market. The S&P BSE Sensex closed 0.19 percent lower while the Nifty50 closed flat with a positive bias for the week ended April 26. Bulls bounced back on D-Street in the final hours of trade which pushed the S&P BSE Sensex above 39,000 while Nifty50 managed to reclaim 11,700-11,750 levels on a closing basis on April 26, which is a positive sign Recovery in the rupee, fall in crude oil prices (below $72/bbl), strong rollovers for May series, and stable earnings so far are some of the factors that pushed market higher. In terms of sectors, metals, banks, oil & gas, and energy stocks rose 1-2% each while profit taking was seen in the auto, consumer durable, and telecom stocks. The March quarter earnings were largely in-line with estimates barring few which

Rupee opens higher at 69.84 per dollar

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Today, USD-INR pair is expected to quote in the range of 69.70 and 70.30-70.50. The Indian rupee gained in the early trade on Tuesday. It opened higher by 17 paise at 69.84 per dollar on Monday versus 70.01 Friday. Rupee consolidated in a narrow range ahead of the important US GDP number and after global crude oil prices witnessed some retracement from higher levels. In the recent past, crude oil prices rallied but expectation of increased supply output from OPEC capped major gains for the commodity. On the domestic front, market participants will be keeping an eye on fiscal number to gauge a view for the rupee. But major crosses will be taking cues from the FOMC policy statement that is scheduled tomorrow. Expectation is that the central bank could main a status quo but what the stance will be going ahead for the Fed could trigger a move for the currency. Today, USD-INR pair is expected to quote in the range of 69.70 and 70.30-70.50, it added. Best Share Mark

Podcast | Stock picks of the day: 'Nifty likely to be in 11,549-11,856 range; avoid aggressive positions'

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Traders are advised not to take any aggressive positions till the time we remain trapped in the mentioned range. At such time, a stock-centric approach becomes the more pragmatic approach. Last week, Nifty clocked a new record high of 11,856.15. However, it turned out to be a formality as there was no follow-up momentum seen to extend the rally. On April 26, market gave a hint of profit booking and a similar sort of decline was seen on the first day of the week gone by. Some macro factors like Brent Crude rising beyond its key levels of $73-74 weighed heavily on traders’ sentiments. Fortunately for us, the damage was not as severe as it looked like at one moment. Due to some smart recovery in the latter half, Nifty managed to reclaim the 11,700 mark at the end of the week. There is a famous saying, all’s well that ends well and it goes perfectly with last week’s price development. Firstly, we successfully managed to defend the key support of 11,549 and then

कई ब्लू चिप कंपनियों में 51% से कम हो सकती है सरकार की हिस्सेदारी

खबरों के अनुसार चालू वित्त वर्ष के लिए रखे उच्च विनिवेश लक्ष्य को पूरा करने के लिए केंद्र सरकार ने चुनिंदा ब्लू चिप कंपनियों में अपनी हिस्सेदारी घटाने का प्रस्ताव रखा है। हालाँकि इससे सरकार की इन कंपनियों में हिस्सेदारी 51% से कम हो सकती है। केंद्रीय सार्वजनिक क्षेत्रक उद्यम (सीपीएसई) होने के लिए कंपनी में सरकार की 51% हिस्सेदारी होना जरूरी है। खबर में निवेश और सार्वजनिक संपत्ति प्रबंधन विभाग (डीआईपीएएम) के अधिकारियों के हवाले से कहा गया है कि जल्द ही बाजार नियामक सेबी (SEBI) के डिफरेंशियल वोटिंग राइट्स (डीवीआर) पर नीति दिशानिर्देश जारी करने की उम्मीद है, जिससे नियंत्रण कमजोर पड़े बिना प्रमोटर पूँजी जुटा सकेंगे। इस नियम के लागू होने पर सरकार नियंत्रण खोये या किसी कंपनी के पीएसयू स्वरूप के बदले बिना सीपीएसई इकाइयों में उच्च हिस्सेदारी बेचने पर विचार कर सकेगी। इस समय दो दर्जन से ज्यादा सीपीएसई हैं, जिनमें सरकार की करीब 60% या इससे कम हिस्सेदारी है। इनमें कई महारात्न और नवरत्न कंपनियाँ हैं, जिनमें इंजीनियर्स इंडिया (52%), इंडियन ऑयल (52.18%), भारत पेट्रोलियम (53.29), गेल इंडिया

Maruti`s plan to phase out diesel vehicles puts suppliers on edge

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Bosch Ltd, Continental AG and other vendors to Maruti Suzuki India Ltd are facing business uncertainties following the car maker’s decision to abandon making diesel vehicles from next April. Those affected are the key engine parts suppliers to diesel powertrains used by India’s largest carmaker in its diesel vehicles, at least four people with knowledge of the matter said. These companies are undergoing a churn in their order books and production plans following Maruti’s decision, the people said, requesting anonymity. “For Bosch, this is a big blow. The common rail system was a key contributor to our powertrain business in India. Suzuki had hinted us about its plan six-eight months ago. Although this will result into big revenues losses, the company will seek new gasoline-engine specific orders to compensate for the lost business. You will also see a transition in Bosch’s focus, which is now shifting towards electric mobility," a senior official from Bosch said, req

High crude oil prices just one worry for India; let`s not ignore the other risks

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For a country that imports the lion’s share of its oil requirements, high prices are never good news. So, when Brent crude prices rose to over $75 a barrel, there was some worry on the Street. NSE’s volatility index (India VIX), often referred to as a fear gauge, surged to a three-year high of 24.6 on Tuesday. Analysts said this was due to a combination of high oil prices and the anxiety surrounding the ongoing general elections. Also, the rupee breached the 70 mark against the dollar. While oil prices have receded to about $72.15 a barrel, it must be noted that they are about 34% higher so far this year. The rise in oil comes against the backdrop of unimpressive corporate results, low job creation, a slowdown in domestic consumption, fears of a subpar monsoon and muted private sector capital expenditure (capex). Election-related nervousness has kept Indian equities volatile. Even so, the S&P Nifty 50 index has increased by about 8.21% so far this year. Cl

SBI moves to invoke Essar Steel Promoters` personal guarantees of Rs 15K cr

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The State Bank of India on Monday filed a recovery suit against Prashant and Ravi Ruia, before the Debt Recovery Tribunal (DRT) here in Gujarat. Essar Steel Lenders led by the SBI are saddled with dues of over Rs 63,000 crore, including overdue interest and penalties.  The SBI will receive only a part of its dues as per ArcelorMittal's IBC Resolution Plan of only Rs 42,000 crore -- leaving lenders with balance dues of over Rs 20,000 crore, comprising principal, overdue interest and penalties. The SBI sought the attachment of global assets of Ruias to recover its balance Essar Steel dues, through debt recovery proceedings at the DRT. The bank hopes to recover its balance dues from Promoters Prashant Ruia and Ravi Ruia, by seeking attachment of their personal global assets The move to invoke the personal guarantees of the Ruias had started about six to eight months ago. A decree from the DRT would lead to the attachment on all personal assets of Ruias

कर चोरी पर लगाम लगाने के लिए सरकार की जीएसटी (GST) ई-चालान शुरू करने की योजना

खबरों के अनुसार कर चोरी रोकने के लिए केंद्र सरकार जीएसटी (GST) ई-चालान-प्रक्रिया (E-Invoicing) शुरू कर सकती है। जीएसटी परिषद (GST Counsil) ने ई-चालान की व्यवहार्यता परखने के लिए एक समिति का गठन किया है। यह समिति दक्षिण कोरिया और कुछ लैटिन अमेरिकी जैसे देशों में इस सिस्टम का अध्ययन करेगी। कर विशेषज्ञों के मुताबिक ई-चालान कर चोरी से निपटने में कारगर साबित हो सकता है। जीएसटी परिषद ने यह कदम कर चोरी के बढ़ते मामलों के कारण उठाया है। इससे पहले जीएसटी परिषद ने कर चोरी पर नकेल कसने के लिए 'इलेक्ट्रॉनिक वे बिल' (ई-वे) शुरू करने जैसे कई उपाय किये हैं। खबर है कि ई-चालान प्रक्रिया आने वाले समय में ई-वे बिल प्रणाली की जगह ले लेगी, क्योंकि ई-चालान सरकार के केंद्रीकृत पोर्टल से ही मिल सकेंगे। हालाँकि भविष्य में कारोबारियों को बिक्री के पूरे मूल्य के लिए पूर्ण इलेक्ट्रॉनिक-टैक्स इनवॉइस या ई-चालान की आवश्यकता होगी। मौजूदा समय में 50,000 रुपये से अधिक के सामान के लिए ई-वे बिल की जरूरत होती है। ई-चालान निकालने या जनरेट करने का तरीका जीएसटी पोर्टल पर ईवेबिल.एनआईसी.इन (ewaybill.nic.in) प

टीवीएस मोटर (TVS Motor) की इकाई ने पुणे में स्थित स्टार्ट-अप में किया निवेश

पुणे में स्थित औद्योगिक इंटरनेट ऑफ थिंग्स (आईओटी) कंपनी ऐल्टीजॉन (Altizon) ने वाहन निर्माता टीवीएस मोटर (TVS Motor) की सिंगापुर स्थित सहायक कंपनी सहित कई निवेशकों से 70 लाख डॉलर जुटाये हैं। ऐल्टीजॉन में निवेश करने वाली अन्य कंपनियों में द हाइव (The Hive), विप्रो वेंचर्स (Wipro Ventures) और ल्यूमिस पार्टनर्स (Lumis Parners) शामिल हैं। जुटायी गयी पूँजी से ऐल्टीजॉन की अपनी अंतरराष्ट्रीय उपस्थिति को मजबूत करने और बौद्धिक संपदा (आईपी) के विकास में अपने निवेश को जारी रखने की है। ऐल्टीजॉन के डेटोनिस इंडस्ट्रियल आईओटी प्लेटफॉर्म का उपयोग इंटेलिजेंट एज कंप्यूटिंग से लेकर व्यावसायिक ऐप्पलिकेशन तक स्मार्ट निर्माण के लिए किया जाता है। 2013 में शुरू की गयी ऐल्टीजॉन पश्चिमी यूरोप, एशिया प्रशांत और अमेरिका में मौजूद है। कंपनी का दावा है कि इसने 100 से अधिक उद्योगों का एक वैश्विक पारिस्थितिकी तंत्र बनाया है। दूसरी तरफ बीते शुक्रवार को बीएसई में टीवीएस मोटर का शेयर 11.00 रुपये या 2.13% की कमजोरी के साथ 506.40 रुपये के भाव पर बंद हुआ। इस भाव पर कंपनी की बाजार पूँजी 24,058.41 करोड़ रुपये है।

India VIX up 40% in April; will Nifty be able to scale the 12,000 level in May?

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We have limited upside but there is strong support near 11,550-11,500 levels in case market started heading south. Nifty has gained a little over 1 percent this month so far while making a lifetime high of 11,856 on April 18. But if experts are to be believed, the psychological level of 12,000 is achievable but there are some hurdles. The rollover data for May series was over 80 percent — higher than 3-month average and best rollover since September 2016. This suggests most of the long positions were rolled over. Another factor that will be very prominent in the May series is volatility. India VIX index is up 40 percent so far in April. Historically we have seen that there is a negative correlation between the VIX and the price of the underlying asset. India VIX is a volatility index based on the Nifty Index Options prices. The index indicates the expected market volatility over the next 30 calendar days. The index closed at 21.45 on April 26, a multi-year h