Saturday, October 21, 2017

Japanese firm files trademark lawsuit against Apple

Japanese software firm - Emonster kk, is suing Apple Inc in a U.S. court over the trademark for the term "animoji", alleging the U.S. technology company stole the name to use on a feature of its iPhone X.

The firm says that it holds the U.S. trademark on the term animoji and that Apple's use of the word is a "textbook case" of deliberate infringement.

Thursday, October 19, 2017

RIL gains 5% on overseas fund raising plans

RIL has gained 5% in yesterday's trading and closed at Rs 916.  The India’s largest private sector conglomerate  is set to launch a $2.5 billion fundraising exercise overseas to refinance loans taken for its telecom venture, Jio. This would be the biggest fundraising exercise by any Indian company this year in the overseas market.

Scott Galloway : FAAG stocks will disappear in 50 years

Scott Galloway, a professor and former entrepreneur, sees an uncertain future for for FAAG companies, that is,  Facebook, Amazon, Apple and Google, in his new book on the powerful tech giants.

He quotes, that of the Dow 100 from 100 years ago, only 11 have survived. With the business life cycle getting faster and faster, a child born today will outlive all of these firms.

He says ten years ago, we were all talking about Myspace. It’s very hard to tell. The only thing he says comfortable saying is that they will all (FAAG) go out of business, all disappear within 50 years.

Intel to take on Nvidia

Chip maker Intel is attempting to reassert its authority in the silicon business by unveiling a new family of chips designed especially for artificial intelligence: the Intel Nervana Neural Network Processor family, or NNP for short.

The NNP family is meant as a response to the needs of machine learning, and is destined for the data center, not your PC. Intel’s CPUs may still be a stalwart of server stacks (by some estimates, it has a 96 percent market share in data centers), but the workloads of contemporary AI are much better served by the graphical processors or GPUs coming from firms like Nvidia and ARM. 

Consequently, demand for these companies’ chips has skyrocketed. (Nvidia’s revenue is up 56 percent year on year.) Google has got in on the action, designing its own silicon named the Tensor Processing Unit to power its cloud computing business, while new firms like the UK-based Graphcore are also rushing to fill the gap.

Nvidia dominates discrete GPU market, having 73 % share, rest held by AMD. 

FORTH COMING IPO : MAHINDRA LOGISTICS LIMITED


  
Issue Details :

Issue opens / closes on
31-10 /02-11-2017

Issue size
Rs 700cr
Face Value
Rs 10


Promoters
Mahindra and Mahindra
Business
logistics
Registrar
Karvy
Listings
Bse, Nse
BRLM
Kotak mahindra Capital, Axis Capital

UBS says cryptocurrencies are speculative bubble

According to UBS, Cryptocurrencies like bitcoin are in a "speculative bubble" and are unlikely to become mainstream currencies.

There are over 1,000 cryptocurrencies, bitcoin being the biggest by market capitalization, and many have seen huge rises in value over the past few years. Bitcoin for example is up over 470 percent year-to-date.


They think the sharp rise in cryptocurrency valuations in recent months is a speculative bubble..

The investment bank said that it is "highly doubtful" that these will ever become mainstream currencies.


Today's quote

Success is not final, failure is not fatal, it is the courage to continue that counts. Winston Churchill.

Wednesday, October 18, 2017

IPO ANALYSIS : Reliance Nippon Life Asset Management Limited

Issue details:



Issue opens / closes on

25-10 /27-10-2017
Issue Size
Rs 1542 cr
Face Value
Rs 10
Price Band
Rs 247 - 252

BUSINESS
Asset management - mutual funds / PMS Services
Promoter
Reliance Capital and Nippon Life Ins
LISTINGS
Bse, Nse
BRLMs
JM, CLSA, Nomura, Axis Capital,IIFl Capital, Edelweiss, SBI Capital Markets, Yes Securities
REGISTRAR
Karvy



Await detailed analysis.

Bajaj Auto reports fall in net in q2

 Bajaj Auto has reported one per cent YoY fall in its standalone net profit to  Rs 1,112 crore for the September quarter.

 The company had reported a net profit of Rs 1,123 crore in the same quarter  last year.

 There was marginal increase in turnover for the quarter at Rs 6,863 crore  compared with Rs 6,774 crore in the year-ago quarter.


Axis Bank net at Rs 432 cr

 Axis Bank has reported a 38% increase in net profit at Rs 432 crore in the second quarter ended September. The bank had posted a net profit of Rs 319 crore for the July-September period of 2016-17.

Total income increased to Rs 13,821 crore in the period under review from Rs13,699 crore for the quarter ended 30 September 2016. During the quarter, gross non-performing assets of the bank rose to 5.90% as compared to 4.17% in the same period a year ago.

The stock closed at Rs 512, down Rs 12 in yesterday's trading.

Saturday, October 14, 2017

RBI to frame cryptocurrency guidelines

Reserve Bank of India is planning to frame a policy on cryptocurrency, a virtual money used as medium of exchange in many countries including India but is not legalised here.

Cryptocurrencies like bitcoin use cryptography to secure transactions.

Needham : Nvidia to scale new heights, stock touches new high

According to investment banking company - Needham, Nvidia shares will soar due to the company's booming chip sales in new high-growth technology markets.

Needham reiterated its buy rating on the chip maker's shares and raised its price target to match the highest of the 34 research shops that cover the stock, saying Nvidia's products will dominate the artificial intelligence and autonomous driving markets.

Nvidia's "24-year history in parallel processing and the development of its ubiquitous CUDA platform has uniquely positioned the company to capitalize on the explosion of 'intelligence machines' – hundreds of millions of AVs [autonomous vehicles] and trillions of IoT [internet of things] devices, all of which will generate significant network complexity and network consumption," according to analyst in an article "Entering A World Where Software Will Write Itself: AI Is the Killer App for GPU.

Nvidia stock touched intraday and life time high of $ 195 in today's trading.

Friday, October 13, 2017

RIL's net at Rs 8109 cr

The most valued enterprise on the Indian bourses - Reliance Industries has reported a 13 % increase in second-quarter consolidated net profit at Rs 8,109 crore as compared with last year’s figure of Rs 7,206 crore.

Consolidated revenue increased by 24% to Rs 1,01,169 crore during the quarter ending September as against Rs 81,651 crore in year-ago period.

The stock closed at Rs 877, up Rs 4 in today's trading.

GIC IPO scrapes through

GIC IPO has managed to get 1.38 times subscription on last day 1.  It appears that there was lack of interest from the retail segment as well as domestic institutional investors. 

BOB under scanner by SA Central Bank.

Bank of Baroda is being investigated by South Africa’s central bank over money held for companies controlled by the politically connected Gupta family.

Bank of Baroda reported 36 suspicious and unusual transactions related to the Guptas’ accounts with a combined value of over 4.25 billion rand to South Africa’s Financial Intelligence Centre.

Ola raises further money

Taxi aggregator  Ola  has raised $1.1 billion in fresh funding from China’s Tencent Holdings Ltd and existing investor SoftBank Group Corp. of Japan.

The latest funding in Ola is also a clear sign of the largest investors in India’s start-up ecosystem closing and consolidating ranks, with Alibaba Group Holding Ltd and SoftBank forging an informal alliance of sorts on one hand, and Tencent and Naspers Ltd combining forces on the other.

TTML to merge with Bharti Airtel

Tata Sons Ltd will sell its consumer mobile business -  TTML to India’s largest telecom operator Bharti Airtel.

Airtel is acquiring the assets on a debt-free, cash-free basis, except for it assuming a fraction of the unpaid spectrum fees that the Tata group owes to the department of telecommunications.

FORTH COMING IPO : RELIANCE GENERAL INSURANCE COMPANY LIMITED

Issue Details :



Issue size
6.70 cr equity shares
Face Value
Rs 10


Promoters
Reliance Capital Limited
Business
General insurance
Registrar
Karvy
Listings
Bse, Nse
BRLM
Motilal Oswal, Credit Suisse,Edelweiss, UBS Securities,Haitong Securities, IDBI Capital Markets

Thursday, October 12, 2017

IndusInd Bank's net up by 25 percent

 IndusInd Bank  has reported 25 percent year on year  increase in its September quarter net profit at Rs 880 crore against Rs 704 crore during the same quarter last year.

The net interest income stood at Rs 1,821 crore, a jump of 24.7 percent from Rs 1,460.3 crore year on year.

Reliance Nippon IPO opens on 25th Oct, price band set

Reliance Nippon IPO has set the price in the band of Rs 247 -252. The IPO opens on25th Oct and closes on 27th.

The company is expected to raise around Rs 1,540 crore through the issue.

JM Financial Institutional Securities, CLSA India, Nomura Financial Advisory and Securities  and Axis Capital are global co-ordinators and book running lead managers to the issue. Edelweiss Financial Services, IIFL Holdings, SBI Capital Markets and Yes Securities are the book running lead managers to the issue.

TCS's net up by 8 percent in q2

 Tata Consultancy Services has reported  8.4 percent increase in at  Rs 6446 cr for second quarter  of FY 18. 

Consolidated revenue during the quarter grew by 3.2 percent to Rs 30,541 crore.
The stock closed at Rs 2547 in today's trading up by Rs 47. 

California unveils new regulations for autonomous vehicles

California state government has unveiled new regulations that would allow autonomous vehicles to operate on state roads in test projects without a human operator.

A revised regulation which could take effect in 2018 would eliminate a provision in an earlier draft that required "physical control by a natural person sitting in the vehicle's driver's seat" in any autonomous car.

Sun Pharma gets EIR for Dadra plant

Sun Pharma has received  Establishment Inspection Report  for its Dadra plant.

The stock closed at Rs 539 on the exchanges in today's trading.

Wednesday, October 11, 2017

IPO ANALYSIS : GIC of India - Invest

Issue details:




Issue opens / closes on


11-010 /13-10-2017
Issue Size
12.47 cr equity shares
Face Value
Rs 10
Price Band
Rs 855 -912


BUSINESS


Reinsurance
Promoter
Govt of India
LISTINGS
Bse, Nse
BRLMs
Citigroup Global Markets India Private Limited, Axis Capital Limited, Deutsche Equities India Private Limited, HSBC Securities and Capital Markets (India) Private Limited and Kotak Mahindra Capital Company Limited.
REGISTRAR
Karvy




Strengths:
  1. Leader in  reinsurance industry with a trusted brand and 44 years of experience.
  2. Significant global player with growing international presence.
  3. Diversified product portfolio and revenue streams.
  4. Diversified investment portfolio generating strong growth and attractive yields.  Strong financial track record and a strong balance sheet.
  5. The average EPS reported for the last 3 years is around Rs 35.

Nvidia hits record high

Nvidia is out with a brand new AI chip, called the Drive PX Pegasus, that will be used in self-driving cars. Nvidia’s new chip can power Level 5 fully driverless cars. Shares were up one odd percent and closed at to $188.93, after hitting a record high of $192.91 in earlier trading on Tuesday.

FirstChoiceIPO had recommended buying Nvidia  when it was hovering around $100, six months ago.

IMF lowers India's GDP

 IMF has lowered India's growth projection to 6.7 per cent in 2017, half a  percentage points less than its previous two forecasts and slower than  China's 6.8 per cent, attributing it to demonetisation and introduction of the  GST.

 The International Monetary Fund  raised its current year growth forecast for  China to 6.8 percent, pushing the Communist giant above India at the top of  the global growth tally.

Tuesday, October 10, 2017

Karnataka government to hold talks with Apple

Karnataka government will hold talks with iPhone maker Apple’s officials in US next week to invite them to invest in Bengaluru.

The sources said that government has  succeeded in getting the assembly plant of the iconic iPhones at Bengaluru which has been set up by Apple’s Taiwan based-original equipment manufacturer Wistron. The government is  planning to send a delegation to hold meeting Apple’s headquarters in Cupertino, California.

Sunday, October 8, 2017

IPO ANALYSIS : MAS FINANCIAL SERVICES LIMITED - INVEST FOR LISTING GAINS


Issue details:



Issue opens / closes on

06-010 /10-10-2017
Issue Size
Rs 460 cr
Face Value
Rs 10
Price Band
Rs 456 / 459

BUSINESS
NBFC : (i) micro-enterprise loans; (ii) SME loans; (iii) two-wheeler loans; (iv) Commercial Vehicle loans (which include new and used commercial vehicle loans, used car loans and tractor loans); and (v) housing loans.

Promoter
KAMLESH CHIMANLAL GANDHI, MUKESH CHIMANLAL GANDHI, SHWETA KAMLESH GANDHI AND PRARTHNA MARKETING PRIVATE LIMITED
LISTINGS
Bse, Nse
BRLMs
Motilal Oswal
REGISTRAR
Link Intime


OBC under RBI's scanner

RBI has initiated a 'prompt corrective action' against state-owned Oriental Bank of Commerce for high bad loans.

The move will place various restrictions on the public sector lender including on fresh loans and dividend distribution.

Net NPA of the bank rose to 9.56 per cent of net advances as of June 2017, against 8.11 per cent a year ago.

Friday, October 6, 2017

FirstChoiceIPO achieves another milestone, completes 11,00,000 page views

FirstChoiceIPO, as on 05-10-2017 has completed 11,00,000 page views.

Team FirstChoiceIPO take this opportunity to thank all our readers, well wishers.

Godrej Agrovet IPO subscribed 95 times, MAS fully susbribed

Godrej Agrovet IPO has been subscribed by 95 times on the final day.

MAS Financial Services IPO got 1 time subscription on day 1.

Thursday, October 5, 2017

Godrej Agrovet IPO subscribed 2.33 times

Godrej Agrovet IPO has been subscribed 2.33 times on day 2. The IPO closes tomorrow.

Muhurat Trading on 19-10-2017

Muhurat Trading session on account of Diwali shall be held on Thursday, October 19, 2017 on account of Muhurat trading on Diwali as per the following schedule.

Normal Market Open 18:30 hrs

Normal Market Close 19:30 hrs

Set up cut off time for Position Limit / Collateral value 19:45 hrs
Trade modification end time 19:45 hrs

All trades executed in this Diwali Muhurat trading session shall result in settlement obligations.

Monday, October 2, 2017

Adani, next Mallya in the making.

Adani Group's entire Rs 18000 cr debt-funded 'investment' in Australia is gravely at risk, according to US-based Institute for Energy Economics and Financial Analysis.

Search this blog for more news on next mallya in the making.

TCS fined $ 420 millions

Tata Consultancy Services in a filing to the stock exchanges says that a US court has more than halved to  the fines USD 420 million. The jury earlier had award fined $ 940 millions. Epic Systems, a healthcare software company had accused the Indian IT player of stealing its trade secrets.

Last year, a US Grand Jury slapped Tata group companies TCS and Tata America International Corp with a USD 240 million fine in a trade secret lawsuit filed against them by Epic Systems. 

Forthcoming IPO : ACME Solar

Renewable energy enterprise ACME Solar has filed papers with Sebi to raise Rs 2,200 crore through an initial public offering.

Funds raised through the issue would be used to pay debt and to finance the company's 200 MW solar power project in Rajasthan, among others.

ICICI Securities, Citigroup Global Markets India and Deutsche Equities India will manage the company's initial public offer.

GAIL surges on unified tariff proposal

GAIL rallied 6% and closed  to Rs 419 on Friday's trade after media reports suggested that the Petroleum and Natural Gas Regulatory Board has proposed consultation on integrated authorization for unified/pooled tariff for all connected pipelines of the company.

Thursday, September 28, 2017

What BJP netas think themselves about economy / Modi policies.


1.Swamy recently told a TV Channel that economy is heading for depression and it may “crash” if steps are not taken soon to revive it. “Today, the economy is in a tailspin. Yes, it can crash. We need to do a lot of good things to revive the economy. Even a tailspin can be made to steady. If nothing is done, we are heading for a major depression. There will be mass scale… banks might collapse, factories might start closing.

2.RSS ideologue and economic commentator, S Gurumurthy also flagged similar concerns on the economy. While speaking on ‘Demonetisation -Its role, Impact and Follow-up’ at an event in Chennai, Gurumurthy said Indian economy is hitting the bottom now. 

3.Sinha, former finance minister attacked current Finance Minister Arun Jaitley, holding him responsible for the mess in Indian economy.

Pointing out that economy is on a downward spiral, Sinha wrote in The Indian Express, “Private investment has shrunk as never before in two decades, industrial production has all but collapsed, agriculture is in distress, construction industry, a big employer of the workforce, is in the doldrums, the rest of the service sector is also in the slow lane, exports have dwindled.”

4. Bharatiya Mazdoor Sangh, India’s largest labour union affiliated with the Rashtriya Swayamsevak Sangh, has sharply criticised the Union government for poor jobs growth and “misguided reforms”, among others.

Wednesday, September 27, 2017

SENSEX @1,00,000 IN 2020. KARVY WRONG AGAIN.


(This article was first published on 05-06-2014)

KARVY Stock Brokings which has been recently barred by market regulator SEBI, from taking up new assignment or launching new schemes for six months in respect of its role as a stockbroker, has come out with a research report wherein it says that Sensex will touch 1,00,000 mark by 2020. 

KARVY has 5 reasons why Sensex will touch that magic figure.


First: Macro-economic revival in India will open opportunities to make strong returns in the next few years. 
Second:  A real GDP growth of 6% along with Inflation of around 7% should lead to a nominal GDP growth of 13%.
Third: KARVY believes that earnings growth for new five to six year business cycle should be at least 20% considering the economy will revive from a very low base.
Fourth: If the infrastructure cycle revives quickly, the earnings growth revival will be faster with even 25% CAGR looking possible. 
Fifth: An earnings growth between 20-25% and multiple re rating from 15x to 16-17x in the next few years can lead to a 25% compounding of Sensex returns, which will take it to 100,000 levels by calendar year (CY) 2020.

What KARVY has not factored in are:

1. Happening of a 'Black Swan' event - like the one occurred in 2008 which led to global meltdown. A sub prime crisis. Prior to the global meltdown in 2008, Sensex was hovering around 22,000 and experts like KARVY then predicted that Sensex will touch 50,000 mark by 2014. Believing this theory millions of investors jumped in to the market. Then came the meltdown. Equity markets across the world plummeted. Within few months Sensex came down to 8000 levels. Most investors lost money, some went bankrupt, few committed suicide. Brokerage houses down sized their operations.  It took nearly 6 years for Sensex to come to the level of 2008. Between June 2008 and June 2014, in full 6 years, the Sensex has moved by just by 3000 points.

2. Monsoon failure - This will apart from deterrent to GDP will be a drag on some segments like FMCG, auto and banks.

3. Fluctuations in currencies of major economies which will hinder our import / export.

4. Regime change / change in the economic policies in countries where in India is a major trading partner. 2016 is a big year for world economy. U S will elect its new president. The incumbent may be not as friendly as the current one. 

5. Slow down in world's major economies like  U S A, China and Japan will have an impact on  India's growth story.

6. Terror strike similar to 29/11 which will make the  world economy crawl.
7. Spurt in oil prices internationally, reasons other than production and supply. We import 80% of oil requirements. If oil prices in international markets raises unreasonably as it happened in 2008-09, where in one barrel had touched $ 150, our economy will go for a tailspin.

8. Nature's fury - floods, earth quake and tsunamis. Capital earmarked for development will be diverted towards rehabilitation, will impact growth.

9. Scams, fraud in stock market - similar to one committed by Harshad Mehta and Ketan Parekh. Investors will lose faith in the system, market. We shall be back to square one.


10. Failure of a big bank / financial institution, globally. Money will flow away from equity markets to commodity / other segments.

( KARVY made the above prediction in first week of June, 2014. The sensex was hovering around 25,500 at that time).

Sensex has gained 5200 points in the last 40 months.