Thursday, April 19, 2018

Rising oil prices and strong USD may derail Indian econmy

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Rising oil prices, which some analysts expect to touch $90 level and strong USD, which is also expected to move towards north, may derail the Indian economy.

The recent massive rise in global crude oil prices has now started inflating the oil import bill for India that meets 80 per cent of its crude requirement through inbound shipments. January’s oil import cost ballooned by a whopping 46 per cent to land at $9.6 billion as against $6.6 billion in the same month last year -- the highest monthly increase in the past year.

India’s ballooning oil import bill also led to the country’s trade deficit shooting up to a 56-month high of $16.3 billion in the month of January, primarily due to a surge in crude oil and precious stone imports.

 India is an importer of pulses, edible oils and a number of soft commodities which have become more expensive with the weakening of the rupee. While on one hand prices of many essential and other agriculture commodities are going down due to excellent winter crop in our country, the prices of pulses and edible oils that we are importing have become more expensive due to the weakness in the rupee. Weak rupee also breeds inflation.

Worried Institutional Investors meet ICICI Bank's chairmen


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Institutional Investors have huge exposure to ICICI Bank. Certainly they worried about what is going on with the bank.  They have met non-executive chairman M K Sharma after a litany of allegations surfaced against the lender’s MD & CEO Chanda Kochhar. The Institutional / MF  executives discussed all issues, including succession planning. There have been meetings between Sharma and the mutual fund houses to assuage their concerns. 

According to market data, the fund houses have over Rs 30,000-crore exposure to the second largest private sector bank in the country, making it the second-most fund-bought lender in the country. Domestic and global institutions and fund houses own more than 72 per cent of the bank. 

Misra Dhatu Nigam rises 70% in 15 days

Misra Dhatu Nigam locked at the upper ceiling limit in yesterday's trade and closed at Rs 153.75. The company's shares were listed on the exchanges on 4th April this year. The company had issued IPO shares at Rs 90.

FirstChoiceIPO had strongly recommended for subscription to the offer.

TRA Brand Trust : SBI most trusted bank in India

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According to TRA Brand Trust, country's biggest bank SBI is also the most trusted bank. The report for 2018  says that the State Bank of India was the most trusted bank (both public and private sector) in the country and ICICI Bank topped the chart among the private ones. 

The survey was carried out during November-January and did not take into account the recent reports of irregularities involving the ICICI Bank. 



Sebi bars GoCapital promoters

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Sebi has barred GoCapital and its proprietor Ankitkumar Shashikant Singhania from the securities market for at least four years.

A Sebi probe found that GoCapital and Singhania were providing investment advisory services to clients for consideration without registration with the regulator and thereby violated Sebi's Investment Advisers Regulations.

They were giving trading tips and stock recommendations, among others, to the investors on payment of fees.

According to Sebi, they collected over Rs 27.65 lakh as fees from investors between October 2013 and March 2016 through different categories of schemes

Sebi has also directed the company to pay back the fees collected.

SBI Report on currency : Shortfall of Rs 70,000 Cr


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Contrary to RBI and government assertion that there is sufficient cash in the system, SBI Research has pegged the cash shortfall in the system at a whopping Rs 70,000 crore, which is a third of the monthly withdrawals at ATMs. In a note that comes a day after reports of currency shortages made national headlines, it depended on nominal economic growth, currency with the public and the rise in digital transactions to arrive at the shortfall estimate.

A 9.8 per cent nominal GDP growth would have taken the currency available with the public to Rs 19.4 trillion by March 2018, as against the actual availability of Rs 17.5 trillion, it said, stressing that the gap of Rs 1.9 trillion is not the shortfall.

The proportion of digital transactions stands at a low Rs 1.2 trillion only, much down the immediate months following the November 2016 note-ban. 

Saudi expects oil to touch $100 / bbl

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Crude gained more than $1 on a reported decline in US crude inventories and after sources signalled top exporter Saudi Arabia wants to see the crude price closer to $100 a barrel.

Top oil exporter Saudi Arabia would be happy for crude to rise to $80 or even $100, Saudi will seek no changes to a supply-cutting deal even though the agreement's original target is within sight.

Brent crude futures were up $1.17 at $72.75, while US WTI crude futures gained $1.30 to $67.82, having hit their highest since late 2014 at $68.08.

Wednesday, April 18, 2018

NCLT Order : Vedanta gets Electrosteel

National Company Law Tribunal has approved Vedanta's resolution plan for the insolvent Electrosteel, making it the first company among the 12 large corporate defaulters.

The Anil Agarwal-led Vedanta informed the stock exchanges that it has been declared the “successful resolution applicant” under the insolvency process and has received the Letter of Intent. The resolution plan involved about Rs 5,300 crore cash payout.

As on March 31, 2017, Electrosteel had over dues to the banks exceeding Rs 10,000 Cr. 

Tuesday, April 17, 2018

Dear friend, speak up, Yashwant Sinha's open letter to PM

We all worked very hard for the victory of the party in the 2014 Lok Sabha elections. Some of us had been struggling against the rule of the UPA government, in Parliament and outside, ever since it assumed office in 2004 while some others were enjoying the fruits of office in their respective states. We were delighted with the results of the 2014 elections and expected that the unprecedented victory would mark the beginning of a new and glorious chapter in our country’s history. We backed the prime minister and his team to the hilt, and in full faith. The government has now completed nearly four years in office, presented five budgets and used up all the opportunity available to it to show results. At the end of it, however, we seem to have lost our way and the confidence of the voters.
The economic situation is grim, despite tall claims to the contrary by the government that we are the world’s fastest growing economy. A fast growing economy does not accumulate the kind of non-performing assets in its banks, as we have done over the last four years. In a fast growing economy the farmers are not in distress, the youth are not without jobs, small businesses do not stand destroyed and savings and investment do not fall as drastically as they have done over the last four years. What is worse, corruption has raised its ugly head again and banking scams are tumbling out of the closet one after another. The scamsters also manage to run away from the country somehow, as the government watches helplessly.
(in put from IE)

Kotak Mahindra Bank, second most valued bank

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Kotak Mahindra Bank over took SBI in terms of market-cap and become the second most valued Bank on the Indian bourses. KMB's market cap as on yesterday stood at Rs 2.23 lac Cr as against SBI's Rs 2.22 lac Cr. HDFC bank is the most valued bank with a market cap of Rs 5.03 lac Cr. Over all, TCS is the number 1 with a market cap exceeding Rs 6 lac Cr.

IPO ANALYSIS: AAKASH EXPLORATION SERVICES LIMITED - AVOID


Issue Details :


Issue opens  / closes on
12-04 /17-04-2018
Issue size
18,00,000 equity shares
Face value
Rs 10
Price
Rs 56
Promoters
Vipul Navin Haria, Mr. Hemang Navin Haria  and Mr. Krunal Pravin Haria
Business
Providing  services for  Oil and Gas
Exploration

Listings
Bse, Nse
BRLM
Monarch Net worth Capital
Registrar
Skyline Financial services

India's WPI eases

India’s wholesale price-indexed inflation softened to 2.47 per cent in March.
The WPI inflation in March 2017 was more than double at 5.11 per cent.

Uttam Galva for Out of the Court settlement

Uttam Galva Steels, a non-performing asset, has offered lenders an out-of-court settlement to pay back its entire default amount of Rs 5200 Cr to Bankers. 

Trouble for ReNew Power

Supreme Court has slapped a penalty of Rs 110 million on renewable energy company ReNew Power for delaying the commissioning of a 51-MW solar power project in Madhya Pradesh by more than 210 days. 

Bse changes circuit filter for 9 stocks

Bse has changed circuit filter for 9 stocks as below wef April 17, 2018.





Sr. No.
Scrip Code
Scrip Name
Price Band % Revised to
1
541178
Benara Bearings and Pistons Ltd
20
2
539131
Crescent Leasing Ltd
10
3
539842
Sysco Industries Ltd
10
4
540023
Millitoons Entertainment Ltd
10
5
541195
Mishra Dhatu Nigam Ltd
10
6
532329
Danlaw Technologies India Ltd
5
7
533200
Talwalkars Better Value Fitness Ltd
5
8
533221
Asian Hotels (West) Ltd
5
9
533305
SRS Real Infrastructure Ltd
2