RCOM UP ON TIE UP WITH APPLE

Rcom has tied up with Apple with its service plans to iPhones.  The Anil Ambani-owned telecom operator will offer as much as 50% discount on data service on its 3G to iPhone users on its network under these plans. The stock is up 2% in the morning trade.

U S ECONOMY CRAWLS

US economy grew by 1.8%, down from an earlier estimate of a 2.4% in the first quarter of this year.

Weak business investment, a slowdown in consumer spending and falling exports led to the downward revision. 

ASHOKA BUILDCON FIXES RECORD DATE

Ashoka Buildcon has fixed 04-07-2013 as record date for split and issue of bonus shares. The Rs 10 FV will be split to Rs 5 FV. After that it will issue bonus shares in the ratio of 1:2. That means  one share held as on RD will become 3 shares subsequently.

WALMART DISCONNECTS RAJ JAIN

Walmart has announced a top level change in its Indian operations with President Raj Jain being replaced by Ramnik Narsey, who is currently Senior Vice-President for Walmart International, with immediate effect.

The company, which has been facing investigations from Indian authorities over its investment in one of the business entities of its Indian partner Bharti Enterprises. The Enforcement Directorate is probing the Rs 456 crore investment by Walmart in Cedar Support Services Ltd, a subsidiary of Bharti Ventures, for alleged illegal investments and flouting of FDI rules under the FEMA and Prevention of Money Laundering Act.

GITANJALI GEMS LOSES 50% IN 3 DAYS

Gitanjali Gems has lost another 10 percent today. In the last 3 trading sessions the stock has lost 50%. It appears the stock was held artificially, at higher levels.

STOCK WATCH: HINDALCO BUY - CMP RS 96

Slow down in global demand for its products has pushed the Hindalco stock to its 52 week low. The stock has given a negative return of 16 percent in the last one year. The   company is likely to post improved profitability in the next 2-3 quarters. The company is otherwise fundamentally strong. Buy the stock at CMP. Short term target Rs 118.

SEBI MODIFIES BUY BACK RULES

SEBI has made two important changes in buy back scheme. One - to safeguard the interest of public shareholders, the board made it mandatory for the companies to buyback at least 50 per cent of their repurchase offers.

Secondly, the companies would have to complete their buyback offers within six months, from 12 months currently, while those not being able to meet the target would be barred from launching another offer for a period of one year.

OPTO CIRCUITS MAY BE REMOVED FROM F&O

Opto Circuits which touched new 52 week low of Rs 18 is likely to be removed from F&O segment in the near future. The company's market cap has fallen below Rs 500 Cr. It one of the worst performer in the last one year among the mid cap stocks.

As per the existing rules, the stock for F&O will be chosen from among the top 500 stocks in terms of average daily market capitalization and average daily traded value in the previous six months on a rolling basis.

LISTING NEWS: e Dynamics Solutions to list tomorrow

e Dynamics Solutions which had issued shares at a fixed price of Rs 25 will list its shares tomorrow in the BSE-SME window. The shares will be in trade-for trade segment until further notice.

ONGC VIDESH AND OIL TO BUY VIDEOCON'S MOZAMBIQUE VENTURE

Oil & Natural Gas Corporation  Videsh Ltd  and  OIL have signed an definitive agreements to acquire interest in the Rovuma Area 1 Offshore Block in Mozambique from Videocon Mauritius Energy Limited.   The deal is expected to be completed before Dec 2013. Videocon may get $ 2.5 billion from the deal.

RANBAXY - SC DISMISSES PIL

Supreme Court  has dismissed a Public Interest Litigation asking for a ban on medicines manufactured by Ranbaxy Laboratories in India.

After the SC verdict, shares of Ranbaxy went up by about 10% at Rs 329.9 from all time low of Rs 301.75.

There were media reports that manufacturing plant in Mohali will also be under the US Food and Drug Administration (USFDA) scanner. 

FORTHCOMING IPO - ACB INDIA

COMPANY	ACB (INDIA) LIMITED
ISSUE SIZE	RS 415 CR PLUS OFFER FOR SALE OF 3.88 CR SHARES
PRICE BAND	NA
IPO GRADE	4/5 BY CRISIL
BRLM	IDFC CAPITAL, EDELWEISS, JP MORGAN, MACQUARIE, AXIS BANK,ICICI BANK, YES BANK
REGISTRAR	LINK INTIME
LISTING	BSE, NSE

VA TECH WABAG GET ORDER

VA Tech Wabag Ltd has  orders worth Rs 325 Cr  from Orissa Water Supply and Sewerage Board.

DOWN TREND MAY CONTINUE

Markets are expected close in red today. FIIs, in June, so far have net-sold shares worth Rs 9600 crore including Rs 1533 Cr sold on Monday. This is the 11th straight day of net sales by FIIs. DLF, Ranbaxy, J P Associates, PNB, Relinfra, Sesa Goa and BHEL shares touched 52 week low yesterday. In the last one month except Lupin, HCL Tech and Dr Reddy's all other NIFTY stocks have given negative returns. The biggest losers being Jindal Steel and J P Associates which have lost more than 30 percent.

M&M FINANCIALS NOT TO APPLY FOR BANKING LICENSE

M&M Financial Services has decided not to apply for new banking license. The group has indicated that the conditions stipulated by RBI for establishing new banks are very tough and disadvantageous for large NBFCs. M&M stock fell 8% yesterday and closed at Rs 236.

CTO OF JUST DIAL SELLS 2 LAC SHARES

After CFO, the CTO of  Just Dial  Sandipan Chattopadhyay who has been associated with the Company since January  2009 has sold 1,99,083 shares in the open market last week.

BANK, AUTO AND INFRA STOCKS SLIDE

FIIs selling is continued in select bank, auto and infra counters. DLF, JP Associates and BHEL stocks have touched new 52 week low. Kotak, SBI and PNB shares are down 2% each. Bajaj Auto and Hero MotoCorp have lost Rs 40 each as of now. NIFTY is down 50 odd and Sensex 150 plus points right now.

SCAMS RIDDEN SEZ TO BE SCRAPPED

SEZ one of the proud programme of the government launched in 2006 will be scrapped.

The existing SEZs will continue to remain operational, those approved might not be notified and developers be allowed to utilize the land for other purposes.

AUTO STOCKS IN TOP GEAR

M&M, Bajaj Auto, Tata Motors, Hero MotoCorp and Maruti are the top gainers as of now. Sensex is up 140 points inspite RBI disappointing the street in its policy announcements. Other Sensex gainers are BHEL,RIL, Bharti, Sunpharma, Infy and SBI. 

RBI SAYS NO TO RATE CHANGE

Falling rupee and  economic slow down has forced the RBI to:

• keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent and  also keep the policy repo rate under the liquidity adjustment facility  unchanged at 7.25 per cent.

Consequently, the reverse repo rate under the LAF will remain unchanged at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 8.25 per cent.

JET AIRWAYS DOWN 8%

Jet airways stock has lost 8% in the morning trade. One of the reason could be the much awaited Jet-Etihad deal is yet to consummate. 

KFA SHARES CHEAPER THAN KF EMPTY BEER BOTTLE

For the first time KFA shares have fallen below Rs 4. At the current rate, the share prices are cheaper than the price of KF empty beer bottle. 

KEY PERSONNEL INCLUDING CFO OFF LOAD JSUT DAIL SHARES

Key personnel of Just Dial including its CFO have off loaded substantial portion of their holdings in the exchanges. Here is the complete list:

NAME	NUMBER OF SHARES OFF LOADED
RAMKUMAR KRISHNAMACHARI	12000
KOORA SRINIVAS	10000
S. GANESH	3800
AJAY NAIR	23800
RM OJHA	10000
SANDEEP KANCHAN	52800
RAMAN NAIR	1100

NRN NEEDS 3 YEARS TURN AROUND THE FORTUNES OF INFY

Infosys founder NRN says he needs 3 years to turn the fortunes of the company. Indian IT industry icon  who returned from retirement as executive chairman this month was speaking at the AGM in Bangalore. Among the large cap, Infy is one of the worst performer in the last 6 years.  

RIL, SBI PAY MARGINALLY HIGHER TAX

SBI and Reliance Industries have paid marginally higher tax for the first quarter compared to same period a year ago. 

State Bank of India has paid Rs 1,202 crore in advance tax for the first quarter as against Rs 1,173 crore. 

Reliance Industries outgo has increased to Rs 779 crore as against the Rs 768 crore. 

SEBI STIPULATES TERMS FOR LISTING PREF SHARES

SEBI has notified regulations to govern the issue and listing of non-convertible preference shares.

A preference share is an equity security with the properties of both an equity and a debt instrument. It usually carries no voting rights, but may carry a dividend.

The listing of privately placed non-convertible, redeemable preference shares would require a minimum application size of Rs.10 lakh for each investor. SEBI has kept the size at Rs 10 lacs deliberately to keep the small investors away from the high risk and ill-liquidity associated with the security.

The public issuance of such shares would require a minimum three-year tenure for the instruments and  investment grade ratings.

RJ PARES STAKE IN CRISIL

Rekha Jhunjhunwala wife of big bull Rakesh Jhujhunwala has sold 4 lacs shares of CRISIL in open market. The deal has fetched Rs 46 Cr. Junjhunwalas still hold 50 lacs shares in CRISIL.

SEBI (Investment Advisers) Regulations, 2013

1. The SEBI (Investment Advisers) Regulations, 2013 (“IA Regulations”) were notified on January 21, 2013 and have come into effect from April 21, 2013. 


2. In terms of the IA Regulations, no person shall act as an investment adviser or hold itself out as an investment adviser unless he has obtained a certificate of registration from the Board or he is specifically exempt.


3. For operational convenience and as part of decentralization of work, it has been decided that the application for registration as an investment adviser under IA Regulations shall be filed with the concerned Regional Office(RO) / Local Office(LO) of the Board under the jurisdiction of which the registered address of the applicant falls. 


4. At present SEBI has its Head Office at Mumbai and 4 Regional Offices i.e. Eastern Regional Office at Kolkata, Northern Regional Office at Delhi, Southern Regional Office at Chennai and Western Regional Office-II at Ahmedabad. SEBI has opened 9 local offices at Bengaluru, Bhubaneshwar, Guwahati, Hyderabad, Indore, Jaipur, Kochi, Lucknow and Patna. 


5. Accordingly, the persons seeking registration under IA Regulations may file their registration application with the concerned RO/LO of the Board for grant of registration. 


6. It may also be noted all the information pertaining to IA Regulations as issued by SEBI from time to time will be available on its website. 

FORTHCOMING IPO: INTAS PHARMACEUTICALS

ISSUE SIZE	RS 225 CR  PLUS OFS OF 1.16 CR SHARES
PROMOTERS	CHUDGAR FAMILY
PRICE BAND / FV	NA / RS 10
IPO GRADE	NA
BRLM	KOTAK MAHINDRA, MORGAN STANELY
REGISTRAR	LINK INTIME
LISTING	BSE, NSE, MCX

MMTC CIRCUIT FILTER CHANGED TO 5 PERCENT

The circuit filter of MMTC stock has been changed to 5% from 17-06-2013 (Monday). The stock is having free fall after the announcement of floor price (Rs 60) for OFS.   The stock may settle down around OFS price in the short term.

FITCH UPGRADES SBI, NINE OTHERS

Rating agency Fitch has upgraded the outlook of 10 financial institutions, including SBI, ICICI Bank, to 'stable' from 'negative'.

The other lenders include - PNB, BOB, BOB (New Zealand), Canara Bank, IDBI Bank, Axis Bank, Export-Import Bank and HUDCO.

IGI AIRPORT SECOND BEST : ACI

Indira Gandhi International Airport has been named the world's second best airport in the 25-40 million passengers category by the Airport Council International.

The airport also has been adjudged as the fourth best in the world among 199 airports across all categories.

CHINA, WORLD TO GROW AT SLOWER PACE : WORLD BANK

World Bank has cut its growth forecast for China. The bank now expects the China to grow 7.7% in 2013, down from its earlier projection of 8.4%.

It also cut the forecast for global economic growth to 2.2% from 2.4%.

LIC APPOINTMENTS: S K ROY TO SUCCEED D K MEHROTRA.

The government has decided to appoint S.K. Roy as the new chairman of state-run Life Insurance Corporation of India . Roy will succeed D.K. Mehrotra, who retired in May.

Roy, who was elevated as LIC’s managing director last month, will get a five-year term as chairman.

MORGAN STANLEY OFF LOADS UNITED SPIRITS

Morgan Stanley Asia a shareholder of United Spirits has sold 24.50 lakh shares of the Vijay Mallya-led United Spirits for over Rs 566 crore in open market transactions.

The shares were purchased by Bank of Nova Scotia Asia at an average price of Rs 2,312.5 apiece in bulk deal.

Morgan Stanley Asia still holds 2 odd percent shares of United Spirits.

NSE NEWS: SUSPENSION OF SECURITIES

NSE has suspended the following from trading w.e.f. June 21, 2013 until further notice on the Capital Market Segment, for non- compliance with certain provisions of the Listing Agreement.

·        K S Oils Limited

·        Abhishek Corporation Limited

HINDALCO SURGES 6% FOR THE SECOND CONSECUTIVE DAY

Hindalco has gained 6% again in today's trade. Yesterday too the stock had gained similar percentage. However in the last one month the stock has given a negative return of 3% and over 365 days the negative return is in excess of 16%. As of now the stock is trading around Rs 102.70.

SEBI SEEKS BOARD MEET DETAILS FROM INFOSYS, MAY LOOK INTO INSIDER TRADING ?

Market regulator SEBI has sought details of the board meeting held on 01-06-2013, among others, to appoint NRN as its chairman. The shares of Infosys surged more than 3 percent on the previous day with huge call option trades. SEBI may look into insider trading. After surging for two days , the stock subsequently retracted.

MALLYA'S RS 1000 CR INVESTMENTS IN DECCAN AVIATION IS WORTH JUST RS 25 CR

Five years ago, in June 2007, the king of good times, acquired Deccan Aviation by spending nearly Rs 1000 Cr.  Deccan aviation shares were bought at Rs 155 a piece. That included 26% preferential allotment and 20% open offer.  Deccan Aviation later was merged with KFA. Six years down the line the KFA shares  available for less than Rs 5. At today's market price, Mallya's Rs 1000 Cr investment in Air Deccan fetches just Rs 25 Cr. The above decision of acquiring Air Deccan  appears to be the single biggest blunder committed by Mallya.

RBI'S MID QUARTER REVIEW ON 17-06-2013.

The Reserve Bank of India will release the next Mid-Quarter Review of Monetary Policy 2013-14 at 11.00 a.m. on June 17, 2013. 

INFRA, METAL AND OIL&GAS STOCKS SURGE, SENSEX UP 180 POINTS

Sensex is up 180 odd points in the morning trade helped by infra, metal and oil&gas stocks. DLF, IDFC, L&T, JP Associates and Rel infra are up between one and three percent. Hindalco and Tata Steel up 2 % each. Index heavy weight RIL is up by Rs 13 and trading above Rs 800 mark. 43 out of 50 NIFTY stocks are trading green territory.

GOD OF INDIAN CRICKET IS BRAND AMBASSADOR OF UAE TRAVEL WEBSITE

Sachin Tendulkar has been chosen by UAE's travel website, Musafir.com,  as its ambassador.

"For his dedication, honesty and inspirational growth in the sport, Musafir.com finds Tendulkar to be the perfect face to represent the brand," a company statement  says.

MMTC OFFER GETS RS 568CR

MMTC's  open offer has got government Rs 568 Cr. MMTC offered 9.3 percent stake at fixed price of Rs 60 a share, a discount of 70% to the market price.

The stock today closed at Rs 190.35 on the BSE, down 10 per cent with no buyers. The slide is expected to continue for some more days.

HUL's OFFER TO OPEN ON 21-06-2013

SEBI has cleared the HUL's open offer which will open 21-06-2013 and close on 04-07-2013. Unilever will buy back shares worth Rs 29202 Cr, one of the biggest open offers. The offer price has been fixed at Rs 600 a share. HUL's shares closed at Rs 595, yesterday. 

KOTAK OFF LOADS TATA COFFEE SHARES

Kotak Mahindra prime has sold 8 lac shares of Tata Coffee in the open market yesterday. The stock closed at Rs 1080, down Rs 80. The stock touched a low of Rs 880. The average cost of shares sold by Kotak is at Rs 881.

SEBI BARS TIJARIA PROMOTERS

SEBI has barred the promoters of Tijaria Polypipes from Capital Markets, for irregularities in the company's IPO.  The promoters are - A J Tijaria, V J Tijaria, P J Tijaria and Vineet Jain Tijaria.

The company came IPO in Sept 2011 and this what we wrote about the IPO.

At the offer price of Rs 60, the shares are offered around 20 PE, on the FY 11 earnings, on its post issue capital of Rs 23.62Cr. It carries IPO grade 2 assigned by ICRA. The company’s expansion cum diversification plan is still at preliminary stage. It will take another 12-18 months to go on stream. There is high execution risks associated with the new project. Post issue promoter group holding will come down below 60%. Considering the above and the industry in which it operates, the IPO has been irrationally priced. AVOID THE IPO.

INDICES TO OPEN AND CLOSE IN GREEN

Benchmark indices are expected to open and close in green. In 9 trading days so far in June, NIFTY has lost 286 points and closed in red in 8 trading days.  Only on 04-06-2103, NIFTY gained just 4 points to stay in green. Falling rupee, global cues, CAD worries and poor IIP numbers had negative effect on the indices. Markets in US closed strongly yesterday. Markets here too expected to follow global cues. 

INFY LOOKING FOR BUY OUTS IN EUROPE, EFFECTS WAGE INCREASE

Infosys has set aside Rs 3600 Cr for acquisition of business in Europe which will add new capabilities. The company which was the second biggest I T company after TCS till recently has fallen behind Cognizant and now it is in third position. Infy has cash balance of Rs 24000 Cr in its books. It has also effected wage increase across board with effect from 01-07-2013. The increase ranges from 3 -8%.

TO PARE DEBT RCOM TO SELL DTH BUSINESS

Rcom is likely to sell his DTH business — Reliance Digital TV — to Sun TV net work for about rupees 2,500 crore. Rcom has debts in excess of Rs 35000 Cr on its books.

KINDLE TO DEBUT IN INDIA ON 27-06-2013

Amazon's high-resolution e-book / electronic paper will make its debut in India on 27-06-2013. 

The company which forayed into India last month, announced that its best-selling e-readers Kindle and Kindle Paperwhite will be available for sale on its Indian website from the above date.

PROMOTERS STAKE SALE PULLS DOWN JUBILANT

Jubilant Food Works has touched 52 week low of Rs 990, down 5%, after one of the promoter sold part of their stake through open market transaction.

Western Investments, a promoter group company  had sold 3.60 lacs shares of the company for Rs 39 crore via market sale on Monday.

WORLD BANK PREDICTS INDIA'S GDP AT 6.7%

World bank has predicted that India will grow at 5.7% in FY 14 and 6.7% in FY 15. Robust  recovery will depend on the pace of policy and fiscal reforms. According to the report, a greater dependence on foreign investment inflows to finance India's significantly larger current account deficit compared to the past has increased its vulnerability to a sudden reversal of investor sentiment.

TATA POWER, STEEL TOUCH 52 WEEK LOW

Tata Power, Tata Steel, NMDC and JP Associates shares have touched 52 week low in today's trade.

APOLLO TYRE SKIDS

Apollo Tyres has lost 17% in the early trade. Markets have not welcomed the overseas acquisition by the company. The deal will lead to massive debt, since the company is not that much cash rich.  The stock, as of now is trading around Rs 77.

TTML TRADES BELOW RS 5

TTML has touched a new low of Rs 4.99 in BSE. Its market cap has fallen below Rs 950 Cr. 

MMTC LOSES 10%, NO BUYERS

MMTC has lost 10% and there are no buyers at Rs 190. The stock is likely to come below its OFS price of Rs 60, once liquidity improves in the market. Stay away from the stock for the time being.

NIFTY DOWN 50 POINTS, TITAN UP 4%

As expected benchmark indices has opened in red. NIFTY has lost 50 points in the early trade. Bank, pharma, auto and metal stocks are the main losers. Titan Industries has bounced back with 4% gain in the early trade. SKS Micro and Just Dial have lost 2% each.

MODI TRUE FRIEND OF CONGRESS

UPA 2 led by Congress has failed in all front. Its noticeable achievements are corruption and scams. Congress ship was about to sink. Modi appeared from no where and saved it. Altough Congress leaders oppose Modi publicly, they have to admit privately, him, as their true friend. The twenty odd percent minorities votes, with 90 plus percentage strike rate, in the coming 2014 LS elections are going to be polarized and the biggest beneficiaries are going to be Congress, SP,BSP and JD(U).  For fear of minorities vote no party wants an alliance with BJP. That will make situation stronger for Congress. Altough there is talk of third front it is unlikely it will be formed. Even if it is formed it will fall no sooner than later because of ideological differences and head strong regional party leaders. It is not easy to do business with Jayalalitha, Mulayam, Maya and Didi. Hence Modi elevation has brightened the chances of UPA 3.

INFY BEST PERFORMER IN THE LAST 30 DAYS

NIFTY has lost 220 points in the last 30 days. Only few NIFTY stocks have given  positive returns. Infy leads the pack, thanks to NRN. Other NIFTY stocks that have stayed in green over the last 30 days are - TCS, HCL Tech, Lupin, M&M, Sunpharma, HUL, Dr Reddy's, ACC and Coal India. Rest of the NIFTY stocks have given negative returns. Jindal Steel leads the pack in this regard, followed by bank, metal and auto stocks.

GLOBAL CUES, FIIs NET SELLING TO PULL DOWN INDICES

Markets across the world yesterday closed in the negative territory. FIIs here have net sold in excess of Rs 1000 Cr in cash market yesterday. Index stock Sunpharma stock will be under sever pressure due to penalty payment to Pfizer. Negative sentiment still prevailing in the metal, steel counters. These factors will make the benchmark indices to open in red in the morning trade.

IBM TO CUT 8000 JOBS GLOBALLY

IBM will be probably cutting 8,000 jobs globally and intend to spend $1 billion on that exercise. That would represent less than 2% of IBM’s total workforce of 434,200 as of 31 December, 2012.

FORTIS TO SELL VIETNAM HOSPITAL

Fortis Healthcare has entered into a pact to sell its entire stake in Vietnam-based hospital chain Fortis Hoan My Medical Corp to Viva Holdings Vietnam for over Rs 465 Cr. Fortis had acquired 65% stake in that company in 2011, paying little over Rs 350 Cr. Fortis Hospital is one of the few companies whose annual revenue is less than its equity.  As against Rs 405 Cr equity the total revenue for FY 13 was Rs 353 Cr.The stock is under-performer in the exchanges since it went public in 2007.

L&T BAGS WAVE INFRATECH ORDERS

Larsen & Toubro has bagged a Rs 900 crore contract from Wave Group's realty arm Wave Infratech to build residential towers in Noida. L&T closed at Rs 1397, down Rs 7 yesterday.

COOPER TIRE & RUBBER UNDER APOLLO FOLD

Apollo Tyres has  acquired the U S based Cooper Tire &rubber company for Rs 14,500 Cr in all cash deal.

This is  one of the biggest overseas acquisitions by an Indian firm.Rubber Co in an all-cash deal valued at about Rs 14,500 crore (USD 2.5 billion).

Post the transaction, Apollo Tyres will become the 7th largest Tyre maker in the world by revenue at USD 6.6 billion from its current 16th position and will give it greater access to US, the second largest automobile market in the world after China.

SUN TO SHELL OUT RS 3200 CR TO PFIZER

Pfizer Inc  will get Rs 12,500 Cr from Sun Pharmaceutical Industries and Israel’s Teva Pharmaceuticals Industries to settle a patent infringement lawsuit related to its acid-reflux drug Protonix.

Sun Pharma will pay Rs 3,200 crore this year. It had set aside Rs. 584 crore last November towards potential damages to Pfizer and will now have to shell out a further Rs. 2,616 crore as final settlement. The stock closed flat at Rs 980 yesterday.

MMTC OFS : FLOOR PRICE AT RS 60 - AVOID

The government  has fixed the floor price of MMTC at Rs 60. Government will sell 9.33 per cent stake in MMTC, which is expected to fetch around Rs 600 crore. 

MMTC disinvestment is the first stake sale of the government in the current fiscal. The government, which currently holds 99.33 per cent stake in the company, will still remain a majority stake holder after the sale.  The stock closed at Rs 211, after hitting yearly low of Rs 191, in the exchanges yesterday.

Investors should stay away from the offer. 

WHY SKS MICRO WILL CONTINUE TO UNDERPERFORM

1. Malegam Committee Report on MFIs has imposed cap on interest rate, margins, total indebtedness and tenure of loans.

The committee has put a cap on margins @12%.The operating cost for SKS Microfinance is around 10%, thus leaving a net margin of 2%. From this, the company has to make provisions for bad debts and unforeseen circumstances like natural calamities, which is very common in states where it operates. Even if SKS is going to have CAGR in excess of 40% in the coming years, that will not be sufficient create value for share holders. Operating cost may move up further, since the tenure of loans has been extended to 24 months, which will results in higher collection costs.

2. Trying to Sail in two boats at the same time, which are moving in opposite directions.

The ultimate goal of micro-finance is to enable the poor to build assets, increase incomes, reduce vulnerability to shocks and economic stress and improve quality of life by enabling better access to education and healthcare, at affordable cost

Value for share holders can be created by earning more profits, paying higher dividends, professionally managing the company, among others. At whose cost the company wants to reward the share holders? There is a clash of interest. You cannot enrich the share holders at the cost of the poorest of the poor.

3.There are corporate governance issues.

The stock is down 6 odd percent in today's trade.

TITAN LOSES ANOTHER 8% TODAY

Titan Industries in the early trade has lost 8% on yesterday's closing price. Today it touched 52 week low of Rs 206. As of now it is trading around Rs 216.

RIL TO CROSS RS 800 MARK RODAY

RIL which closed at Rs 785 yesterday may surpass Rs 800 mark by close.

AMERICA'S FASTEST GROWING COMPANIES

According to Forbes Magazine the 10 fastest growing companies of America are:

Rank	Company	Business	Latest 12 Mo. Sales (mil)	Latest 12 Mo. Sales Growth	3-Yr Avg Sales Growth	Est. EPS(growth)
1	LinkedIn	Social Networking	$1,109	80%	102%	51%
2	Facebook	Social Networking	$5,489	36%	87%	25%
3	Apple	Computer Hardware/Software	$169,104	19%	55%	15%
4	3D Systems	3D printers	$378	45%	46%	30%
5	IPG Photonics	Lasers/Amplifiers	$581	17%	46%	26%
6	EPAM Systems	IT Software/Services	$464	30%	43%	25%
7	Shutterstock	Online Commercial Digital Imagery	$183	38%	41%	21%
8	InvenSense	Consumer Electronics	$209	36%	40%	20%
9	Shutterfly	Online Photo Products/Services	$666	31%	39%	16%
10	OpenTable	Online Reservation Services	$168	16%	34%	20%