Moneycontrol Latest News

Stocks that were buzzing in trade today

Written By Unknown on Selasa, 31 Maret 2015 | 18.01

CNBC-TV18s Mangalam Maloo lists some of the key stocks which were buzzing in trade today.

CNBC-TV18s Mangalam Maloo lists some of the key stocks which were buzzing in trade today.

18.01 | 0 komentar | Read More

Hold ITC, may touch Rs 375-380: Sharmila Joshi

According to Sharmila Joshi of sharmilajoshi.com, one may hold ITC as the stock may move to Rs 375-380 in the long term.

Sharmila Joshi of sharmilajoshi.com told CNBC-TV18, "There doesn't seem to be any real good news for ITC and we have had another duty hike in this budget and the company has said that they will pass it on to users but somewhere the results indicated that the elasticity in passing on prices has come down. So you will see numbers for cigarette sales coming down."

"I think the good news is that somewhere along the line, the company had begun to diversify away from cigarette not exactly away but getting into other businesses where you wouldn't be hit by these constant duty hikes the way cigarette business is. So they have increasingly gotten into food, they are in other businesses, they have a hotel, they have an agri business, they have paper and company's strategy to focus on food business going ahead is also -- they have spoken about that very widely in the press in last couple of months, so you have to give time," she added.

"One should stay invested. My target on the stock would be closer to Rs 375-380 but you need to wait for this entire food business story to play out for that to increasingly contribute to the topline as well as the bottomline," she said.

18.00 | 0 komentar | Read More

Eight personal finance tips if you Ã¢â‚¬Ëœjust started earningÃ¢â‚¬â„¢

If you have just started earning, then consider these basic rules of investing, as you shape your finances. Setup emergency corpus, have your own health insurance, secure your dependents, save substantially, focus on risk management, start goal based savings and pay attention to asset allocation principles.

Ayush Bhargava
GettingYouRich

Mahip, a 24 years management graduate was happy to get a job in a manufacturing firm, as a manager with a decent salary. Few months later he bought a car with an EMI of approximately Rs 8000. He also started using his credit card and now half of his salary was used to pay his card bills. His parents suggested him to at start saving but he kept ignoring. He met with an accident and was hospitalized. He had no health cover and parents had to pay the bill. Unable to work for next one month, parents also funded his credit card and other bills. Mahip finally realized his mistake, having learned the hard way.

To avoid these mistakes, we have these 8 tips to help you shape your finances.

1. Create an emergency fund equivalent to 3-6 months of expenses – In the above example of Mahip, one can clearly observe how important emergency fund is. In case if he had sufficient emergency fund with him then definitely he would be in a better position to pay his bills. So if your overall expenses are around 60,000 per month including EMI and other variable expenses, then you should always maintain around Rs. 3 Lac in your emergency funds. Based on the situation, your need of having emergency corpus can be even higher.

2. Buy a personal health insurance cover – Almost every employer provides the facility of group health insurance. However, it is still advised to buy a personal health insurance cover on your own to avoid dependency on the employer. Now, there is no standard formula to calculate the amount of the health insurance cover. One can look at the medical history, place of stay, hospitalization expenses incurred in past and the premium one can afford.

3. Use 'need based' approach to calculate your life cover – Although there are many methods to calculate the right amount of life cover, however at young age "Need Analysis method" may just work fine. You can consider financial liabilities (net of assets) and household expense corpus that your dependents will need till their life time. Total of the net financial liabilities and the household expense corpus amount should be ideally be your insurance cover. Online term plan is recommended, being the cost effective solution.

4. Target a substantial saving rate –Most of the people still follow the old rule of saving i.e. "Income – expense = Savings." This way people save less and spend more. However, if you follow the reversed rule "Income-saving = Expenses" then chances are high that you may end up spending less. Start saving at least 50% of your income every month as at this stage of life the responsibilities are less.

5. Save taxes, the smarter way – Insurance policy is often bought just to save the tax. There are many tax saving instruments which make a smarter choice. Beyond an online term plan, the required savings to meet Section 80 C quota can be met through investing in Equity Linked Saving Scheme. These have a lock in period of just 3 years, are not expensive and can generate substantial returns linked to the market performance. One can also consider investing into Public Provident Fund to save tax.

6. Invest in Financial Risk Management – It is a prudent measure to proactively manage financial risks on one's life & health at minimum. Once these are done, one can look at supplemental covers like personal accident, critical illness & hospital cash covers. While your situation can be different, a thumb rule of spending about up to 10% of your income on risk management is a good practice.

7. Start goal based savings, Include retirement goal– At this age, one typically likes to buy a car, get married and buy a house. So while saving for these goals, one should also allocate savings towards your retirement. By starting early for retirement goal, one gets substantial benefits through compounding principle. The amount can be increased every year with an increase in income and lifestyle. Remember, you can get a loan to buy car or a house but no one funds your retirement.

8. Pay attention to Asset Allocation - Money is very important in anyone's life and to invest it without having any proper strategy is very risky. It is always advised to go with the proper "Asset Allocation" which is based on the individual's risk profile, current financial situation and future goals. For example if the goal is of short term it is better to keep money safe in debt instruments and if goal is of long term equity exposure should be high. Remember regular review and rebalancing is important to achieve future goals.

The author is a Certified Financial Planner (CFP) and specializes in helping young families to setup their personal finance roadmap. He is associated with www.gettingyourich.com, a Mumbai based financial planning firm.

18.00 | 0 komentar | Read More

Kiran Mazumdar-Shaw: A true Indian Business Icon

Take a look at what has made Kiran Mazumdar-Shaw of Biocon a true Indian business icon.

CNBC-TV18's special initiative – India Business Icons (IBI) was started to acknowledge the monumental impact our business leaders, trailblazers and radicals have had on the economy and how they have redefined the contours of leadership in the Indian context. Take a look at what has made Kiran Mazumdar-Shaw of Biocon a true Indian business icon.

For more, watch accompanying videos.

18.00 | 0 komentar | Read More

India to issue land reform order to end political deadlock

Written By Unknown on Senin, 30 Maret 2015 | 18.00

effort in the first year of his administration. The rural development ministry is preparing a new ordinance or an executive order to replace an earlier one that expires on April 5, an official in the ministry said on Monday.

India will issue a new decree this week for land purchases that has stirred disquiet across the country but which the government says is necessary to build roads, ports and power stations for higher economic growth.

Billions of dollars of infrastructure projects are held up because of the difficulties involved in acquiring land under a law that requires approval of 80 percent of the affected landowners as well as carrying out a social impact assessment study.

Prime Minister Narendra Modi has made amending the law the centrepiece of the reform effort in the first year of his administration.

The rural development ministry is preparing a new ordinance or an executive order to replace an earlier one that expires on April 5, an official in the ministry said on Monday.

It will have the same amendments which were approved by the lower house of parliament, the official said, making it easier to buy land for industrial corridors, rural housing and electrification, and for defence purposes.

Critics led by the main opposition Congress party say the proposed land reforms are anti-farmer and will rob millions of people of their livelihoods.

18.00 | 0 komentar | Read More

India rejects BP's request to market jet fuel

Demand for aviation fuel in India could rise by 2.2 percent in the financial year beginning in April, according to the Petroleum Planning and Analysis Cell in the federal oil ministry.

India has rejected a request from BP Plc to be allowed to sell jet fuel to the booming aviation market in Asia's No. 3 economy, saying it did not meet the conditions necessary, a source with direct knowledge of the decision told Reuters.

Consumption of aviation fuel is set to rise in India as domestic air traffic is estimated to almost triple this decade, with more of the country's 1.25 billion people starting to fly and as airlines connect smaller cities.

Demand for aviation fuel in India could rise by 2.2 percent in the financial year beginning in April, according to the Petroleum Planning and Analysis Cell in the federal oil ministry.

BP is not the only overseas company interested in India's jet fuel retail business, which is dominated by state refiners. Royal Dutch Shell Plc already sells a small volume of jet fuel in a tie-up with state-run Mangalore Refinery and Petrochemicals Ltd.

The source declined to cite the precise reason for BP's request being turned down by the oil ministry.

According to Indian rules, marketing rights for jet fuel can be given only to companies investing or proposing to invest at least 20 billion rupees (USD 319 million) in exploration and production, refining, pipelines or terminals in the country.

In 2011 BP agreed to buy a 30 percent stake in oil and gas blocks operated by India's Reliance Industries for USD 7 billion and also invested funds for further exploration and development.

It applied for a jet fuel marketing licence for the second time last year.

However, according to the source, who did not wish to be identified, the oil ministry wrote to the company this month saying it did not meet the conditions specified for marketing aviation fuel in the country.

"BP has been continuously engaging with the Ministry of Petroleum and Natural Gas regarding the licensing application and we are confident we meet the requirements," a spokeswoman said in an email.

"We will continue to work closely with the Government authorities and urge them to review the decision."

18.00 | 0 komentar | Read More

RBI relaxes bad loans provisioning rules for banks

The relaxation will be applicable for floating provisions held by them as of the end of December 2014.

The Reserve Bank of India on Monday relaxed provisioning rules against bad loans by allowing banks to set aside up to 50 percent of floating provisions from 33 percent.

Floating provisions are the amount that banks set aside that are above the mandatory provisioning requirement against bad loans established by the central bank.

The relaxation will be applicable for floating provisions held by them as of the end of December 2014.

Banking stocks extended gains to session high of 1.8 percent following the news.

18.00 | 0 komentar | Read More

KKR, Indium, Leapfrog to pump Rs 500cr in Magma Fincorp

They will be allotted 4.62 crore equity shares at a price of Rs 108, which is an almost 30 per cent premium over Friday's closing price. The stock was trading 13 per cent up at Rs 94.10 a piece on the BSE in the afternoon session.

Non-bank lender Magma Fincorp on Monday said private equity funds KKR, Indium and LeapFrog will invest Rs 500 crore in the company through preferential shares to spur business expansion.

Indium, an investment vehicle advised by India Value Fund Advisors, will be investing Rs 220 crore, while emerging market investor Leapfrog Investments will infuse Rs 200 crore, the Kolkata-based lender said in a statement.

American private equity KKR, which first invested in the company in 2011, is doing a follow-up investment of Rs 801 crore, it said, adding that the company board has approved the issue of preference shares.

"Magma will use the new capital to grow its business and capture opportunities created by India's economic growth and improving financial markets," it said.

The investors come with "long-term strategic capital" which will help the company in the next level of its growth, the company's managing director Sanjay Chamria was quoted as saying.

"We continue to believe that rural and semi-urban financial inclusion will be a key element of this growth and Magma is a unique platform that can actively drive this financial inclusion," KKR's chief executive for India, Sanjay Nayar said.

Magma Fincorp stock price

On March 30, 2015, Magma Fincorp closed at Rs 94.90, up Rs 11.75, or 14.13 percent. The 52-week high of the share was Rs 142.00 and the 52-week low was Rs 66.10.

The company's trailing 12-month (TTM) EPS was at Rs 7.02 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 13.52. The latest book value of the company is Rs 66.38 per share. At current value, the price-to-book value of the company is 1.43.

18.00 | 0 komentar | Read More

Here's how Klay is helping new moms get back to work

Written By Unknown on Minggu, 29 Maret 2015 | 18.00

It is not easy for new mothers to go back to work for various reasons and one of them is the challenge of finding a good day care center and that is what pushed Priya Krishnan to startup Klay an acronym for Kids Learning and You, a preparatory school that provides day care services to working parents.

Kridhan Infra has informed that one of the holders of Warrants has exercised his right of conversion of Warrants into Equity shares and accordingly the Board of Directors at their meeting held on March 27, 2015 have allotted 30,00,000 Equity Shares of Rs 2 each fully paid up on account of conversion of 6,00,000 Warrants.

Kridhan Infra Ltd has informed BSE that one of the holders of Warrants (namely Mr. Anil Agrawal - the Promoter) has exercised his right of conversion of Warrants into Equity shares and accordingly the Board of Directors at their meeting held on March 27, 2015 have allotted 30,00,000 Equity Shares of Rs. 2/- each fully paid up on account of conversion of 6,00,000 Warrants of Rs. 10/- (Post sub-division of the face value of Equity Shares from Rs. 10/- to Rs.2/-, 6,00,000 Warrants of Rs.10/- each have become 30,00,000 Warrants of Rs.2/-) each (i.e. the ratio of 1 Equity Share for every 1 Warrant held).Source : BSE

Read all announcements in Kridhan Infra

18.00 | 0 komentar | Read More

Mehraboon Irani negative on ITC

Mehraboon Irani of Nirmal Bang Securities has a negative view on ITC.

Written By Unknown on Rabu, 25 Maret 2015 | 18.00

Harshala Chandorkar
CIBIL

Sachin Khare, a resident of Mumbai, recently saw an advertisement for a 3 BHK apartment in Mumbai's upcoming suburb. The apartment was all Sachin had ever dreamt of- plush locality, modern amenities and close to his place of work and most importantly fitting his budget. Sachin an MBA with honours from a reputed management school was a topper of his class and got a job at one of the leading technology company in Mumbai. Having started with humble beginnings from Satara in Maharashtra, a home in Mumbai was Sachin' s dream come true.

However, despite his salary and job credentials, to Sachin' s astonishment, his loan application got rejected basis his CIBIL Report and low CIBIL TransUnion Score. A distraught Sachin couldn't fathom the reasons behind the rejection and at first thought it could be a mistake due to his name being a common one. On accessing his CIBIL TransUnion Score and report from CIBIL, Sachin realised that his score was low as he had not paid the EMI's on the education loan he had taken for completing his MBA course. It then dawned on him that in his aim to own his dream house and save money for it, he had completely neglected paying his education loan, thereby costing him his dream of owning a home in Mumbai.

Like any other loan, it is vital to know that an education loan is a credit facility provided to help one pursue his/her higher education. Like any other form of credit, education loans have to be repaid once one completes his/ her course and gains employment. Also like any other loans and credit cards, education loans are also reported to the CIBIL and get reflected in the borrower's CIBIL Report.

Repayment of an education loan generally starts within six months of the student taking up a job or one year after the course ends, whichever is prior. An education loan default occurs when the borrower fails to repay the education loan EMI's. Defaults on repayments of education loans will reflect in the borrower's CIBIL Report and negatively impact his/her CIBIL TransUnion Score and hence like in the case of Sachin, if one defaults on an education loan it could impact the chances of getting a loan for many more important milestones in the future like the dream home or the car he/she aspires.

Also in more developed economies, an individual's credit report and credit score is a critical reputational collateral and is used for multiple purposes by various institutions. Employers review it before recruiting a new employee; landlords require it before renting out an accommodation and of course telecom providers check an applicant's credit history before assigning limits.

Duly paying your education loan installments on time, each month, is the best thing that could be done to maintain a good credit score. Nevertheless, if you find it difficult to re-pay your education loans, consider an option of negotiation. Banks are open to negotiation. Request the banker to increase your loan repayment term and settle for a lower EMI. This may help reduce your loan burden significantly.

It is never too early to start thinking about your financial future. All these tips will pay off, and definitely help you avoid hurting your CIBIL TransUnion Score and CIBIL Report and thus safeguarding your dreams.

18.00 | 0 komentar | Read More

RBI signs 400 mn currency swap pact with Sri Lanka

The swap arrangement is intended to provide a backstop line of funding for the SAARC member countries to meet any balance of payments and liquidity crises till long-term arrangements are made.

RBI on Wednesday signed a USD 400 million currency swap agreement with the Central Bank of Sri Lanka for three years that will allow the island nation to draw the amount in dollars or euros in multiple tranches.

"The Central Bank of Sri Lanka can make drawals of US Dollar or Euro in multiple tranches up to a maximum of USD 400 million or its equivalent," RBI said in a statement.

The agreement, which will be valid for three years, is expected to further economic co-operation between the two countries, it added.

The arrangement will also further financial stability in the region, RBI said.

The swap arrangement is intended to provide a backstop line of funding for the SAARC member countries to meet any balance of payments and liquidity crises till long-term arrangements are made.

In May 2012, Reserve Bank of India had announced in the SAARCFINANCE Governor's meeting, held in Nepal, that it would offer swap facilities aggregating USD 2 billion, both in foreign currency and rupee to SAARC member countries.

The facility is available to all South Asian Association for Regional Cooperation (SAARC) member countries. Besides India, other members of SAARC are: Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka.

18.00 | 0 komentar | Read More

Qatar Airways CEO says exploring JV with IndiGo

Qatar Airways is "extremely interested" in investing in India and is looking for a possible joint venture with India's most profitable airline, IndiGo, the former's CEO Akbar Al Baker told CNBC-TV18.

Qatar Airways is "extremely interested" in investing in India and is looking for a possible joint venture with India's most profitable airline, IndiGo.

In an exclusive interaction with CNBC-TV18's Rituparna Bhuyan, Qatar Airways CEO Akbar Al Baker said the company was exploring a tie-up with Indigo while adding that "no other airline in India" fit its criteria for a tie-up.

However, Qatar Air has previously also expressed interest in investing its Indigo while the latter has gone on record stating it is not interested in any such tie-ups.

Sources, though, told CNBC-TV18 that Qatar is also in talks with SpiceJet for a deal and that a team from the Ajay Singh-run airline recently met officials of the gulf carrier.

18.00 | 0 komentar | Read More

Prefer private sector banks: Pankaj Murarka

Pankaj Murarka of Axis Asset Management is of the view that one may prefer private sector banks.

Pankaj Murarka of Axis Asset Management told CNBC-TV18, "Banks have significant challenges ahead of them, clearly their asset quality issues are not fully resolved and more importantly many of these banks are completely starved of capital. The new capital allocation formula which the government has adopted from this year clearly spells out the mind of government where they really want to give capital only to efficient of the PSU banks."

"At some point of time there will be a significant consolidation in the sector that has to happen because lot of these smaller PSU banks or state owned banks will need significant capital over the next couple of years to comply with Basel III requirements. Unless and until we have clarity on that as to how these banks will be funded or we get clarity in terms of when are we closer to the consolidation, one would be better off with private sector names in the financial sector because they have done a far superior job," he said.

18.00 | 0 komentar | Read More

India to lead Asia's economic growth: ADB

Written By Unknown on Selasa, 24 Maret 2015 | 18.00

Projecting a slowdown in Chinese economy, the Asian Development Bank (ADB) on Tuesday said the economic growth in Asia would be led by India for the next couple of fiscals.

The Asian Development Outlook 2015 projected Emerging Asian economies to clock average 6.3 percent growth in both 2015-16 and 2016-17 fiscal, as in the current financial year. The growth would be supported by a strengthening recovery in the major industrial economies and soft global commodity prices.

"The expected pick-up in India and in most members of the Association of Southeast Asian Nations (ASEAN) could help balance gradual deceleration in the region's largest economy, China," ADB said. The ADB has forecast that India's growth will improve from 7.4 percent in current fiscal to 7.8 percent in 2015-16 and further to 8.2 percent in 2016-17.

As regards China, the ADB projected the economic growth to decelerate from 7.4 percent in current fiscal to 7.2 percent next fiscal and 7 percent in 2016-17 as the government proceeds with its structural reform agenda and fixed asset investment slows.

ADB said the growth in Asia would be aided by soft commodity prices and recovery in major industrial economies. It said India is poised to overtake China in terms of growth as as government removes structural bottlenecks and lifts investor confidence. Besides, expected easing of monetary policy and pick up in capital expenditure would also boost growth.

Developing Asia is making a strong contribution to global economic growth, ADB Chief Economist Shang-Jin Wei said. However, ADB warned of several risks to Asia's growth outlook.

"Risks to the outlook include possible missteps in the PRC as it adjusts to its new normal, less decisive action on reforms in India than anticipated, potential spillover effects on the global economy of the Greek debt crisis and the deepening recession in the Russian Federation," it said.

The impending rise in interest rates in the US may reverse capital flows to the region, requiring monetary responses to maintain stability, ADB said. "Falling commodity prices are creating space for policy makers across the region to cut costly fuel subsidies or initiate other structural reforms.

This is a key opportunity to build frameworks that will support more inclusive and sustainable growth in the longer term," he added.

18.00 | 0 komentar | Read More

Buy Aurobindo Pharma, says Rahul Mohindar

Rahul Mohindar of viratechindia.com recommends buying Aurobindo Pharma.

Rahul Mohindar of viratechindia.com told CNBC-TV18, "The weakness is clearly among the banks. If you ask me as a short-term trader even now the front line banks look a little weak to me. If I am playing the next 4-5 percent, the banks are going to be weak. If you are trying to utilise this correction from a buy perspective selectively I would look at stocks like Infosys and Tata Consultancy Services (TCS)."

"I like technology, pharma sectors you want to be in probably use the drop to get in. So selectively this would be the sector I would really look at on the buy side. Technology and pharma look interesting to me. So something like Aurobindo Pharma to be specific at these levels with Rs 1,120 stop makes a good buy. We have seen a sharp savage correction over the last 3-4 sessions. I think there is a lot of opportunity out there," he said.

18.00 | 0 komentar | Read More

Suven Life gets patents for molecules in three countries

These patents are exclusive intellectual property of Suven and are achieved through the internal discovery research efforts, Suven said.

Drug firm Suven Life Sciences has been granted patents each by Canada, Japan and Korea for molecules, aimed to be developed as drugs, for the treatment of neuro-degenerative diseases.

The patents are valid through 2030, Suven Life Sciences said in a filing to the BSE. Commenting on the development, Suven Life CEO Venkat Jasti said: "We are very pleased by the grant of these patents to Suven for our pipeline of molecules in CNS arena that are being developed for cognitive disorders with high unmet medical need with huge market potential globally."

The granted patents include the class of selective 5-HT compounds discovered by the company and are being developed as therapeutic agents useful in the treatment of cognitive impairment associated with neuro-degenerative disorders like Alzheimer's disease, Huntington's disease, Parkinson and Schizophrenia, among others, Suven said.

"With these new patents, Suven has a total of eighteen granted patents from Canada, sixteen granted patents from Japan and sixteen product patents from Korea," it added.

These patents are exclusive intellectual property of Suven and are achieved through the internal discovery research efforts, Suven said. "Products out of these inventions may be out-licensed at various phases of clinical development like at Phase-I or Phase-II," it added.

Suven Life Sciences shares were trading 5.15 percent up at Rs 293.95 per scrip during afternoon trade on the BSE.

Suven Life Sci stock price

On March 24, 2015, Suven Life Sciences closed at Rs 297.40, up Rs 17.85, or 6.39 percent. The 52-week high of the share was Rs 322.90 and the 52-week low was Rs 73.20.

The company's trailing 12-month (TTM) EPS was at Rs 9.76 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 30.47. The latest book value of the company is Rs 20.86 per share. At current value, the price-to-book value of the company is 14.26.

18.00 | 0 komentar | Read More

Govt says it differed with UPA ministry's stand on Sec 66A

Government on Tuesday made it clear that it differs with previous UPA regime's stand on Section 66A of IT Act, which has been scrapped by Supreme Court, and has conveyed it in writing to apex court that it respects freedom of speech and expression and is not in favour of curtailing communication of honest dissent or criticism on social media.

At the same time, it had conveyed a request to the court that government is willing to come out with additional, more stringent guidelines so as to prevent abuse of Section 66A of the Act which allows arrest of a person for posting allegedly "offensive" content on websites.

"Our government led by Prime Minister Narendra Modi took a very conscious decision that we don't support the stand of the previous government.

"We respect the freedom of speech and expression. We respect communication of ideas on social media and we are not in favour of curtailing communication of honest dissent, opinion, disapproval or criticism on social media," Union IT Minister Ravi Shankar Prasad said.

In his initial comments on the Supreme Court verdict, he said the government had stressed that it will not support any interpretation of Section 66A of IT Act that curtails the ideas of freedom of speech and expression enshrined under Article 19(1) of the Constitution.

"It is very important to be noted that in our affidavit filed, apart from reiterating our new position on behalf of Government of India, we have clearly conveyed that if Section 66A of the IT Act cannot be interpreted in consonance with Article 19(1) read with Article 19(2), then we don't support that interpretation at all," he said.

Though Prasad said he will come with a structured response once he reads the entire judgement that runs into 200 pages, he said, on government's instruction the additional Solicitor General Tushar Mehta also conveyed a request to the bench that "government is willing to come out with additional more stringent guidelines so as to prevent abuse of Section 66A of the Act". "I am awaiting the judgement.

The Government of India's stand is quite different from the previous government's and it has been very clear and consistent which I have just mentioned.

I will come with a structured response after going through the judgement," he said.

18.00 | 0 komentar | Read More

Don't outsource loan processing tasks: RBI to bankers

Written By Unknown on Senin, 23 Maret 2015 | 18.00

Concerned over the rising number of loan default cases, the Reserve Bank on Monday warned lenders against outsourcing their credit processing activities to third-party entities.

"We encourage the banks that whatever is the non-core activity it should be outsourced. Let me tell you credit processing is not a non-core activity.

I would say it is most core activity of a banker," RBI Deputy Governor S S Mundra said here at an Assocham event.

"If credit processing is also outsourced then I think it will lead to a kind of situation what we are witnessing now," he said, hinting at the mounting bad loans in the banking system.

As per the data made available by the RBI, the gross NPAs (non-performing assets) of the PSU banks stood at Rs 2,60,531 crore, as on December 2014.

The total number of defaulting borrowers, having Rs 10 crore and above at the end of September 2014, stood at 2,897 with outstanding amount of Rs 1.60 lakh crore.

Talking about imprudent and non-cooperative borrowers, willful defaulters, Mundra said, "It is important that the errant borrowers are quickly brought to book and recovery proceedings be completed as early as possible."

A non-performing account of whatever origin and pedigree is a drag on the banking system and increases the cost of intermediation, which pinches an honest borrower the most, he said. It is important for the system to weed out the unethical elements at the earliest opportunity to ensure the credibility and the efficiency of the credit system in the country, he said.

"Several attempts are already underway, one of which is the establishment of a central fraud registry, which will enable quick sharing of information on entities found to be defrauding banks," Mundra added.

The RBI and IBA (Indian Banking Association) together have also taken upon themselves the circulation of "caution advices" relating to all types of frauds, including those pertaining to loans and advances, he said. And added, efforts also need to be made to alienate the willful defaulters and fraudsters and debar them from accessing the banking system for further finance.

Cautioning banks against a herd mentality in rushing to fund specific sectors, Mundra asked them to assess credit risks before giving loans to sunrise sectors.

"I have seen herd mentality in banks, (to fund) some so-called sunrise sectors, where everyone rushes to finance that sector," he said. On unseasonal rains and hailstorm in Northern India, Mundra said it is difficult to gauge its impact on inflation and no straight formula can be used to ascertain this.

18.00 | 0 komentar | Read More

Prefer Sun Pharma for long term: Neeraj Dewan

Neeraj Deewan of Quantum Securities is of the view that one may prefer Sun Pharma for long term.

Neeraj Deewan of Quantum Securities told CNBC-TV18, "In pharma the correction is also going to be vicious when you see this kind of upmove. So after such a run up, one needs to be very careful. There will be still certain pockets, certain stocks like Sun Pharmaceutical Industries which is a largecap stock and which has good potential with the Ranbaxy Laboratories merger also happening. So, if you are in that kind of a stock, even if you buy today and you have a long-term perspective I do not think you will be loser in the longer term."

"There will be other stocks also which might be moving with the rally. So, one needs to be very specific and be picking the right stock even after it has run up so much," he said.

18.00 | 0 komentar | Read More

Gayatri Projects to bid aggressively for NHAI orders: MD

Going forward the company also plans to bid aggressively for the NHAI order, said TV Sandeep Reddy, nanaging director of Gayatri Projects.

Gayatri Projects bagged new order from Public Works Department (PWD), Raipur for nearly Rs 1.37 crore. TV Sandeep Reddy, nanaging director of Gayatri Projects said it is an ADB funded two-lane project.

Going forward the company also plans to bid aggressively for the NHAI order, said Reddy.

The order book for the company at the end of December quarter was around Rs 6000 core. He said revenues from the new order will start coming in from the next financial year.

for the entire interview watch video

Gayatri Project stock price

On March 23, 2015, Gayatri Projects closed at Rs 142.00, down Rs 5.7, or 3.86 percent. The 52-week high of the share was Rs 192.00 and the 52-week low was Rs 50.50.

The company's trailing 12-month (TTM) EPS was at Rs 7.32 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 19.4. The latest book value of the company is Rs 220.32 per share. At current value, the price-to-book value of the company is 0.64.

18.00 | 0 komentar | Read More

Penganga open cast mine will benefit farmers: Fadnavis

Western Coalfields' (WCL) Penganga open cast project will benefit the people in nearby areas as ample coal will be available to Maharashtra State Power Generation Company Limited (MahaGenco) to provide electricity at cheaper rates, Chief Minister Devendra Fadnavis has said.

When the mine is fully operational, the youths from nearby areas will get employment opportunities and farmers will receive a total package of Rs 125 crore for land acquisition, Fadnavis said after inaugurating the project at Wani in Chandrapur district here on Sunday.

"The new project will bring all round happiness in the lives of farmers from the area with enhanced compensation from land acquisition, employment to their wards and uninterrupted power supply from MahaGenco," he said.

The state government has given a sanction after completing all the formalities within two months for the Penganga project, with the only condition that the rivers in the area will not be polluted, he said.

The WCL extended a financial help of Rs 2 crore to district collector of Chandrapur for cleaning of Irai river, Fadnavis said.

On the occasion, Union Power Minister Piyush Goyal said he was happy that the company has set its vision to produce 60 MT coal by 2019-20 at a cumulative annualised growth rate of about 8.6 percent.

WCL will open 24 new mines in the coming two years. The additional coal production will result in development of Vidarbha, he added.

Union Transport Minister Nitin Gadkari, MoS for Chemical and Fertilisers Hansraj Ahir, Maharashtra's Power Minister Chandrashekhar Bawankule, Coal India Limited's Chairman Sutirtha Bhattacharya and WCL's CMD R R Mishra were also present on the occasion.

The WCL has achieved its target of opening three projects slated for 2014-15. With capital outlay of Rs 901 crore, these projects, on achieving full capacity, will result in coal production of seven million tonnes in Maharashtra, a company release said.

About 6 MT of coal produced from these projects will be supplied to power plants for generation of electricity and nearly 1 MT of coal will be supplied to other consumers in the state, it said.

Direct employment opportunities for more than 1,000 persons have been created for eligible land oustees.

Steel and Mines Minister Narendra Singh Tomar on Saturday said the The Mines and Minerals (Development and Regulation) Amendment Bill, 2015, will bring in more investment to the sector besides ushering in transparency in mines allocation.

"Apart from ushering in transparency in mines allocation process, the Bill will bring in a revolutionary change in the sector. It will also attract more investment to the sector, enhance expertise and income of those employed with the sector," Steel and Mines Minister Narendra Singh Tomar told Media.

The new law seeks to bring in transparency in allocation of mines of 10 minerals including bauxite, iron ore, limestone and manganese ore and cut discretions, he said.

The Bill, which replaces Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015 promulgated on January 12, 2015, amends the Mines and Minerals (Development and Regulation) Act, 1957.

The Mines and Minerals (Development and Regulation) Act, 1957 regulates the mining sector in India and specifies the requirement for obtaining and granting mining leases for mining operations.

Tomar said it would also help in bringing out untapped potential of the sector with two per cent of the royalty fixed to be used on exploration activities, adding the auctioning process could likely be started by June. "Exploration (of minerals) will get a boost. Process will be simplified and investment will come in," he said.

Tomar said states have provisionally identified over 100 mines containing as many as 10 minerals like iron ore, bauxite and others where auction process could be started in the first phase. Auctions would be conducted for both captive and non-captive mines. "We are already in the process of framing the rules and guidelines for auctioning.

We hope to ready them within May. Unlike coal, mines will be auctioned by the states. I think the process can be started by June," he said.

Tomar said the Bill provides for creation of a District Mineral Foundation (DMF) for the welfare of the persons in districts affected by mining related operations. "Exploration (of minerals) will get a boost. Process will be simplified and investment will come in," he said.

18.00 | 0 komentar | Read More

UCO Bank chief for data mining to manage NPAs

The plausible reasons for rising NPA levels could be attributed to slowdown in the economy or deficiency in due diligence, he said. "There is a need for research on why the NPAs in the banking system are rising, in addition to a segmented and focused study", Kaul said.

Chairman and managing director of state-owned UCO Bank Arun Kaul on Saturday said data mining, the analytic process designed to explore the huge data, should be integrated with audit for better management of NPAs.

"The large database of banks should be analysed using analytics. This should be integrated with bank audit to improve the quality of audit and for better management of NPAs", Kaul said at a seminar on bank audit organised by ICAI here.

He said that current discussions doing the rounds in banking circle are on rising levels of stressed assets which needed a careful examination.

Now many banks are resorting to forensic audit in case of high profile wilful defaulters, he said. "It seems that banks are having a fear of lending. But there is no fear of defaulting", Kaul said.

UCO Bank had already identified Vijay Mallya of defunct Kingfisher Airlines as a wilful defaulter. Yesterday, the shareholders of the bank approved issuance of preferential shared to LIC to raise Rs 400 crore. The shares would be issued by March 31, 2015, Kaul said.

UCO Bank stock price

On March 20, 2015, UCO Bank closed at Rs 65.35, down Rs 0.8, or 1.21 percent. The 52-week high of the share was Rs 115.75 and the 52-week low was Rs 65.10.

The company's trailing 12-month (TTM) EPS was at Rs 11.96 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 5.46. The latest book value of the company is Rs 110.64 per share. At current value, the price-to-book value of the company is 0.59.

18.00 | 0 komentar | Read More

Glenmark barred by HC from selling its anti-diabetes drugs

A bench of justices S Ravindra Bhat and Najmi Waziri, while granting an interim injunction in favour of MSD, also said the price difference between the drugs of the two companies "is not so startling as to compel the court to infer that allowing Glenmark to sell the drug at depressed prices would result in increased access".

Indian pharma major Glenmark pharamceuticals was on Saturday barred by the Delhi High Court from making, marketing or selling its anti-diabetes medicines on the ground that it had "prima facie" infringed the patent of US drug major Merck Sharp and Dohme (MSD).

Glenmark's medicines, Zita and Zita-Met, cost 30 percent less than MSD's Januvia and Janumet, which is due to the customs duty paid by the US firm, the court said and added "no allegation has been made that MSD today sells its drugs at a relatively high price that hinders access to the drug".

"In the present case, given the size of the diabetes drug market in India and the sheer number of patients from all economic strata of society, demand for low-priced medicines will remain, rather than any distortion of demand, due to brand loyalty or a first mover's advantage to MSD," it said.

"A strong case can in some instances offset an equal balance of conveniences between parties. In this case, MSD has established a prima facie case of infringement,...," it also said.

The bench, however, allowed Glenmark to to sell the products in question which are already in the market (i.e. with its distributors, retailers etc.). "However, in compliance with the injunction granted in favour of the plaintiff/MSD – it shall not henceforth further sell, distribute or in any manner take any steps towards placing in the market the drug in question, Zita and Zitamet and such of the pharmaceutical products which are covered by the claim for interim injunction in the suit," it said.

It directed Glenmark to give a true and correct account of all stock of its anti-diabetes drugs in its factory as well as those which are in the market and permitted to be sold.

Glenmark stock price

On March 20, 2015, Glenmark Pharma closed at Rs 830.90, down Rs 21.8, or 2.56 percent. The 52-week high of the share was Rs 879.05 and the 52-week low was Rs 546.60.

The company's trailing 12-month (TTM) EPS was at Rs 18.02 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 46.11. The latest book value of the company is Rs 107.12 per share. At current value, the price-to-book value of the company is 7.76.

18.00 | 0 komentar | Read More

Car sales growth to accelerate to 7% in FY16: Icra

The used car market has been a beneficiary of the declining interest in new car market, it said, adding other factors like entry of organised players, increasing awareness and financing option have also helped. "ICRA expects Indian used car market to outpace domestic new car sales growth in the near to medium term".

Improvement in customer sentiment and new model launches will push up car sales growth to up to 7 percent in FY16 and further to 8-10 percent the year after, rating agency Icra said on saturday.

"We expect growth momentum in domestic passenger vehicle industry to accelerate with 5-7 percent in FY16 and 8-10 percent growth thereafter," it said in a note. The expansion will be largely driven by an improvement in customer sentiment, which is correcting on lower cost of ownership because of fuel price corrections, and also the new launches which are in the pipeline, it said.

A sizeable chunk of the car sales is contributed by the first time buyers (FTB), whose purchase decision rests on the operating costs and macroeconomic factors. The number of FTBs declined to 37 percent in 2014, which witnessed a spurt in fuel prices and also headwinds on the macroeconomic front, from a high of 50 percent in 2012, the rating outfit maintained.

"Over the last one year, gradual decline in fuel prices (especially petrol), easing financing norms and overall improved customer sentiment have helped in return of FTBs (in car market) in the current fiscal." The small car segment, the FTBs' favourite, will witness improved volume traction, it said.

18.00 | 0 komentar | Read More

Moneycontrol Latest News

Written By Unknown on Jumat, 20 Maret 2015 | 18.00

Moneycontrol Latest NewsMoneycontrol LogoGateway Distriparks: Updates on temporarily suspension of activity by Customs DeptShort SBI, says Amit HarchekarCrompton Greaves may test Rs 160: Kunal BothraBuy Essar Ports, says Amit HarchekarPI Industries' director Bimal K. Raizada passes awayIndian Hotels' director Abhijit Mukerji resignsBuy Infosys, says Kunal BothraDish TV: Outcome of board meetingTANFAC Industries' board meeting on March 24, 2015Lifeline Drugs: Outcome of board meetingArihant Superstructures' board meeting on March 30, 2015Did You Know: Sunstar's m-cap jumped from Rs 20 cr to Rs 980 cr in 2 yrsSaraswati Commercial: Outcome of EGMUnited Bank of India appoints Nundi Associates as statutary central auditorsExit Biocon, says Vishal Malkan

Latest News from Moneycontrol.com http://www.moneycontrol.com Fri, 20 Mar 2015 16:20:02 +0530 Moneycontrol.com http://img1.moneycontrol.com/images/top2010/moneycontrol_logo.jpg http://www.moneycontrol.com Feed provided by Moneycontrol. http://www.moneycontrol.com/news/announcements/gateway-distriparks-updatestemporarily-suspensionactivity-by-customs-dept_1335081.html <img src="http://www.moneycontrol.com/news_image_files/bse_corporate_announcment1_190.jpg" alt="Gateway Distriparks: Updates on temporarily suspension of activity by Customs Dept" title="Gateway Distriparks: Updates on temporarily suspension of activity by Customs Dept" border="0" width="75" height="75" align=" left" hspace="5"/> Gateway Distriparks Ltd has informed BSE that the Customs permission for Custodianship at the Container Freight Station (CFS) at Chennai of the subsidiary Company, Chandra CFS Terminal Operators Private Limited was temporarily suspended on December 19, 2014 by Customs Dept., Chennai, until further orders. Fri, 20 Mar 2015 16:14:09 +0530 http://www.moneycontrol.com/news/announcements/gateway-distriparks-updatestemporarily-suspensionactivity-by-customs-dept_1335081.html http://www.moneycontrol.com/news/stocks-views/short-sbi-says-amit-harchekar_1335039.html <img src="http://www.moneycontrol.com/news_image_files/2013/s/sbi_200.jpg" alt="Amit Harchekar" title="Amit Harchekar" border="0" width="75" height="75" align=" left" hspace="5"/> Amit Harchekar of A Plus Analytics recommends shorting State Bank of India as the stock may slide to Rs 262. Fri, 20 Mar 2015 16:03:03 +0530 http://www.moneycontrol.com/news/stocks-views/short-sbi-says-amit-harchekar_1335039.html http://www.moneycontrol.com/news/stocks-views/crompton-greaves-may-test-rs-160-kunal-bothra_1335055.html <img src="http://www.moneycontrol.com/news_image_files/2014/c/crompton_200.jpg" alt="Kunal Bothra" title="Kunal Bothra" border="0" width="75" height="75" align=" left" hspace="5"/> Kunal Bothra of LKP Securities is of the view that Crompton Greaves may test Rs 160. Fri, 20 Mar 2015 16:02:06 +0530 http://www.moneycontrol.com/news/stocks-views/crompton-greaves-may-test-rs-160-kunal-bothra_1335055.html http://www.moneycontrol.com/news/stocks-views/buy-essar-ports-says-amit-harchekar_1335037.html <img src="http://www.moneycontrol.com/news_image_files/2014/e/essar_200.jpg" alt="Amit Harchekar" title="Amit Harchekar" border="0" width="75" height="75" align=" left" hspace="5"/> Amit Harchekar of A Plus Analytics recommends buying Essar Ports with a target of Rs 138-140 in 3-4 trading sessions. Fri, 20 Mar 2015 16:01:01 +0530 http://www.moneycontrol.com/news/stocks-views/buy-essar-ports-says-amit-harchekar_1335037.html http://www.moneycontrol.com/news/announcements/pi-industries-director-bimal-k-raizada-passes-away_1335075.html <img src="http://www.moneycontrol.com/news_image_files/bse_corporate_announcment_190.jpg" alt="PI Industries' director Bimal K. Raizada passes away" title="PI Industries' director Bimal K. Raizada passes away" border="0" width="75" height="75" align=" left" hspace="5"/> PI Industries Ltd has informed BSE that Shri. Bimal K. Raizada, Independent Non-Executive Director on Board of the Company passed away on March 19, 2015 after having a Cardiac Arrest at New Delhi. He was associated with the Company since 2010. Fri, 20 Mar 2015 16:00:27 +0530 http://www.moneycontrol.com/news/announcements/pi-industries-director-bimal-k-raizada-passes-away_1335075.html http://www.moneycontrol.com/news/announcements/indian-hotels-director-abhijit-mukerji-resigns_1335074.html <img src="http://www.moneycontrol.com/news_image_files/bse_corporate_announcment1_190.jpg" alt="Indian Hotels' director Abhijit Mukerji resigns" title="Indian Hotels' director Abhijit Mukerji resigns" border="0" width="75" height="75" align=" left" hspace="5"/> Indian Hotels Company Ltd has informed BSE that Mr. Abhijit Mukerji - Executive Director - Hotel Operations has expressed a desire to resign from the services of the Company and pursue his professional interests elsewhere. Mr. Mukerji will step down as the Company's Executive Director - Hotel Operations effective April 13, 2015. Fri, 20 Mar 2015 16:00:24 +0530 http://www.moneycontrol.com/news/announcements/indian-hotels-director-abhijit-mukerji-resigns_1335074.html http://www.moneycontrol.com/news/stocks-views/buy-infosys-says-kunal-bothra_1335047.html <img src="http://www.moneycontrol.com/news_image_files/2015/i/infosys200_200_3141.jpg" alt="Kunal Bothra" title="Kunal Bothra" border="0" width="75" height="75" align=" left" hspace="5"/> Kunal Bothra of LKP Securities recommends buying Infosys with a target of Rs 2340. Fri, 20 Mar 2015 15:57:48 +0530 http://www.moneycontrol.com/news/stocks-views/buy-infosys-says-kunal-bothra_1335047.html http://www.moneycontrol.com/news/announcements/dish-tv-outcomeboard-meeting_1335061.html <img src="http://www.moneycontrol.com/news_image_files/bse_corporate_announcment1_190.jpg" alt="Dish TV: Outcome of board meeting" title="Dish TV: Outcome of board meeting" border="0" width="75" height="75" align=" left" hspace="5"/> Dish TV India at its meeting held on March 20, 2015, has accepted and took on record the resignation of Mrs. Asha Swarup, Independent Additional Women Director of the Company from the Board of Directors of the Company, from the close of working hours of March 20, 2015. Fri, 20 Mar 2015 15:57:07 +0530 http://www.moneycontrol.com/news/announcements/dish-tv-outcomeboard-meeting_1335061.html http://www.moneycontrol.com/news/announcements/tanfac-industries-board-meetingmarch-24-2015_1335060.html <img src="http://www.moneycontrol.com/news_image_files/bse_corporate_announcment_190.jpg" alt="TANFAC Industries' board meeting on March 24, 2015" title="TANFAC Industries' board meeting on March 24, 2015" border="0" width="75" height="75" align=" left" hspace="5"/> TANFAC Industries has informed that a meeting of the Board of Directors of the Company will be held on March 24, 2015, to consider the proposal for allotment of Non-Convertible Redeemable Cumulative Preference Shares of face value of Rs 100 each for cash AT PAR to Aditya Birla Chemicals (India) Limited. Fri, 20 Mar 2015 15:56:15 +0530 http://www.moneycontrol.com/news/announcements/tanfac-industries-board-meetingmarch-24-2015_1335060.html http://www.moneycontrol.com/news/announcements/lifeline-drugs-outcomeboard-meeting-_1335059.html <img src="http://www.moneycontrol.com/news_image_files/bse_corporate_announcment1_190.jpg" alt="Lifeline Drugs: Outcome of board meeting " title="Lifeline Drugs: Outcome of board meeting " border="0" width="75" height="75" align=" left" hspace="5"/> Lifeline Drugs at its meeting held on March 05, 2015, has approved the appointment of Mr. Nitin Vinayak Kore as Company Secretary Compliance Officer of the Company w.e.f. March 05, 2015 in place of existing Company Secretary Compliance Officer namely Mr. Pratik K. Pujara who has resigned from this date. Fri, 20 Mar 2015 15:55:23 +0530 http://www.moneycontrol.com/news/announcements/lifeline-drugs-outcomeboard-meeting-_1335059.html http://www.moneycontrol.com/news/announcements/arihant-superstructures-board-meetingmarch-30-2015_1335058.html <img src="http://www.moneycontrol.com/news_image_files/bse_corporate_announcment1_190.jpg" alt="Arihant Superstructures' board meeting on March 30, 2015" title="Arihant Superstructures' board meeting on March 30, 2015" border="0" width="75" height="75" align=" left" hspace="5"/> Arihant Superstructures Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2015, to consider the appointment of Women Director pursuant to Section 149(1) of the Companies Act, 2013.<</description> Fri, 20 Mar 2015 15:55:18 +0530 http://www.moneycontrol.com/news/announcements/arihant-superstructures-board-meetingmarch-30-2015_1335058.html http://www.moneycontrol.com/news/stocksnews/did-you-know-sunstars-m-cap-jumpedrs-20-cr-to-rs-980-cr2-yrs_1335036.html <img src="http://www.moneycontrol.com/news_image_files/2015/v/varinder_200.jpg" alt="Varinder Bansal" title="Varinder Bansal" border="0" width="75" height="75" align=" left" hspace="5"/> The Sunstar stock has rallied 2025 percent from Rs 20 to Rs 425 since listing. Fri, 20 Mar 2015 15:36:03 +0530 http://www.moneycontrol.com/news/stocksnews/did-you-know-sunstars-m-cap-jumpedrs-20-cr-to-rs-980-cr2-yrs_1335036.html http://www.moneycontrol.com/news/announcements/saraswati-commercial-outcomeegm_1335034.html <img src="http://www.moneycontrol.com/news_image_files/bse_corporate_announcment1_190.jpg" alt="Saraswati Commercial: Outcome of EGM" title="Saraswati Commercial: Outcome of EGM" border="0" width="75" height="75" align=" left" hspace="5"/> Saraswati Commercial India Ltd has informed BSE that the Extra Ordinary General Meeting (EGM) of the Company held on March 20, 2015. Fri, 20 Mar 2015 15:31:24 +0530 http://www.moneycontrol.com/news/announcements/saraswati-commercial-outcomeegm_1335034.html http://www.moneycontrol.com/news/announcements/united-bankindia-appoints-nundiassociates-as-statutary-central-auditors_1335033.html <img src="http://www.moneycontrol.com/news_image_files/bse_corporate_announcment2.jpg" alt="United Bank of India appoints Nundi Associates as statutary central auditors" title="United Bank of India appoints Nundi Associates as statutary central auditors" border="0" width="75" height="75" align=" left" hspace="5"/> United Bank of India has informed BSE that M/s. Nundi Associates, Chartered Accountants has been appointed as one of the Statutary Central Auditors of the Bank w.e.f. March 02, 2015 in place of M/s. Dinesh Mehta Co., Chartered Accountants, who completed their allocated tenure. Fri, 20 Mar 2015 15:30:53 +0530 http://www.moneycontrol.com/news/announcements/united-bankindia-appoints-nundiassociates-as-statutary-central-auditors_1335033.html http://www.moneycontrol.com/news/stocks-views/exit-biocon-says-vishal-malkan_1335011.html <img src="http://www.moneycontrol.com/news_image_files/2015/p/Pharm_medical_drugs_anti_pharma_medical_medicine_200x200.jpg" alt="Vishal Malkan" title="Vishal Malkan" border="0" width="75" height="75" align=" left" hspace="5"/> Vishal Malkan of malkansview.com is of the view that one may exit Biocon. Fri, 20 Mar 2015 15:29:33 +0530 http://www.moneycontrol.com/news/stocks-views/exit-biocon-says-vishal-malkan_1335011.html

18.00 | 0 komentar | Read More

Does New Pension Scheme fit in your retirement portfolio?

Written By Unknown on Kamis, 19 Maret 2015 | 18.00

Amit Kukreja

The Union budget has proposed an additional deduction of Rs.50,000 under section 80CC(D) if you invest in the National Pension System (NPS). NPS that was made available to public investors almost six years ago could not attract investors. However given the tax deduction NPS now offers, it will attract investors. In India tax deductions drive a lot of investment decisions. Though the budget has not proposed any changes in the features of NPS, the additional deduction will drive huge investments into NPS in the coming years. So, where does NPS fit into your retirement portfolio?

Let's first understand the advantages that NPS creates for investors:

• The additional tax deduction of Rs.50,000/= for investments done in NPS;

• It would now be offered as an alternative benefit to the employees besides EPF;

• It is one of the lowest cost pension schemes in the world. The total recurring expenses including the fund management fee varies between 0.05% and 0.25% per annum;

• It is portable i.e. can be managed and operated from any part of the country;

• It offers flexibility of choice of pension fund manager;

• It offers flexibility of asset allocation to equity, corporate bonds and government bonds;

• For those investors who are not confident of choosing the right asset mix for themselves, they can avail of the inbuilt 'Life Cycle Fund';

• It falls under EET (Exempt-Exempt-Taxable) status of taxation; and when you withdraw the funds on maturity, any portion that is used to buying an annuity will not be taxed. Only lump sum withdrawn amount will be taxable.

The key feature that differentiates NPS from EPF is its exposure to equity (Nifty stocks). The equity exposure is capped at 50%. This protects investors from the market lows. If one takes a long term view of the market, 50% allocation to equities in the portfolio will create a decent return in one's portfolio. Since NPS is meant for retirement phase, with lock-in feature it creates the investment horizon that can be a very long term. It is not liquid; that is its strength. Compare it with EPF that has the liquidity option, investors often use life-stage scenarios to withdraw money from EPF corpus that adversely impacts the corpus ear-marked for retirement. Not to forget, EPF is a debt-scheme with returns not being as high as in an equity-based scheme. NPS is likely to take off slowly but as the market completes a business cycle or two the differential in returns of NPS and EPF will speak for itself. Leave alone the convenience of tracking portfolio and portability in NPS.

The purpose of NPS is to provide regular income during the retirement phase. The purpose would not be achieved if the corpus is not given the horizon and exposure to equity to grow. And before the corpus is turned into annuity scheme generating monthly income, the corpus needs to be insulated from any withdrawals and continued for its exposure to equity for compounding magic. NPS offers a market linked investment opportunity for your retirement corpus in the given economic environment when macro economic factors are pro-growth. It is very likely to create better returns that a provident fund can offer.

Importantly, remember that the taxation on withdrawals in NPS is on the entire lump sum amount including the principal component. This lump sum cannot exceed 60% of the total corpus built via NPS. Let us take a simple calculation. A 30 year old employee is investing Rs5000 per month for next 30 years. For his total invested amount of Rs 18 Lacs over 30 years, his total corpus accumulated via EPF (@8.75% p.a.) is approximately 87.50 Lacs. And his total corpus accumulated via NPS (@13% p.a.) is approximately 2.21 Crores. If he uses 40% to buy annuity i.e. Rs.88 Lacs and withdraws a lump sum of 1.33 Crores, he is still better off. The annuity will create his regular monthly income and the lump sum withdrawal (after capital gains taxes using indexed cost of acquisition) would still leave him with a decent amount in hand for further investments. Please note that even conservative returns for equity over a long period are not only creating a lifelong pension-bearing annuity, but also a lump sum amount, post tax, that is much higher than EPF.

So, NPS does make a strong case for your retirement portfolio. How do you choose one? Well, while choosing a pension fund manager one should evaluate consistency of returns, profile of the debt portfolio, pension fund manager's performance record and risk adjusted returns. To build your retirement corpus earmark your assets for growth. This list could be a list of assets like EPF, PPF, NPS, Equity Mutual Funds, and Real Estate. I believe NPS will turn out to be the core element of retirement planning strategy.

Amit is a member of The Financial Planners' Guild , India (FPGI). FPGI is an association of Practicing Certified Financial Planners to create awareness about Financial Planning among the public, promote professional excellence and ensure high quality practice standards.

18.00 | 0 komentar | Read More

Premium hike on FSI to make homes costlier: Realtors

The Maharashtra government has announced a premium for additional floor space index (FSI) availed by developers for construction. The state budget has announced enhancing the FSI limit from 0.33 to 0.60.

Discussing the implications, Gulam Zia of Knight Frank said the FSI premium will be charged at the current ready reckoner rates. He feels the new development plan is not well understood and fears that the new rule may throw the whole TDR (transfer of development rights) into a spin.

The real estate market in Mumbai is going through bad patch with the demand witnessing historic weakness, Zia said.

Pujit Aggarwal of Orbit Corporation expects the TDR market prices to rise. He feels the real estate market may look up provided the government walks the talk. "The government has to play an important role if they are looking at home for all by 2020," he said.

NM Gattu of DB Realty said the property prices will rise by 10-15 percent.

Below is the transcript of NM Gattu, Pujit Aggarwal and Gulam Zia's interview with CNBC-TV18's Menaka Doshi and Senthil Chengalvarayan.

Menaka: I am told there is an FSI premium announcement. There is an announcement that has to do with the development or the conversion of mill land to industrial land so to speak and there is something to do with increasing Ready Reckoner rates as well?

Zia: Most of these are regular announcements that keep coming in the Budgets. Unfortunately currently it has kind of coincided with the recent development plan (DP) changes that they have also brought in. So, currently there is huge amount of chaos all over because the new DP itself is not well understood and such changes in policy framework specially from planning angle bring in at least about an year or year and a half of interruption in the industry and that interruption would definitely mean that people will not be doing those transactions of buying land, selling land, TDRs, FSIs etc., that is the biggest worry.

Senthil: So, you are saying this Rs 5000 crore that the government is targeting will not happen?

Zia: I don't think so because at least for year, year and a half I don't see, especially in Mumbai. Mumbai all said and done is the biggest contributor to the real estate of the state. If Mumbai itself is passing through such a lull period then I doubt if they will be able to get this kind of money.

Menaka: Can you explain to us specifically what has happened outside of the DP and some of those issues we have spoken of earlier as well on the show? Can you explain to us what has happened on lets say the FSI premium front, what that means for builders, for home buyers?

Zia: When I read the Budget, whatever speech that was presented, it says that in different municipalities or municipal areas they would take a premium on the additional FSI that they give. Now at least in case of Brihanmumbai they are very specific that earlier it was 0.33 FSI that municipalities were collecting the money from developers or the guys who wanted to construct their houses, on the other side today they are saying that they will first of all increase that from 0.33 to 0.6 and then that will be charged on the current Ready Reckoner value. That 0.33 so far was charged at 2008 Ready Reckoner value which was very low in terms of what the current prices are. So, the intent is good. What they are saying is that instead of everybody else making money the government should also get money then in order to spend on the improvement of the state.

Menaka: I didn't get this 0.33 to 0.6, could you just explain that again?

Zia: In island city the FSI allowed was 1.3 and in the suburbs it was 1, with TDR it was going to 2 FSI . They jacked it up sometime back from 1 to 1.33 but that 0.33 was something which developer had to buy from the government instead of buying the TDR. Now they have made it to 0.6.

Menaka: So, now you can buy up to 1.66 but the rates for that 0.6 additional have been changed to new Ready Reckoner?

Zia: Correct, and the government will collect this. Two things, first implication is that the whole TDR market will go for a spin because earlier this area was bought from the open TDR market. So, that transfer of development right market will actually go completely berserk and government will collect that money which is a good intent. However as I said at least for year and a half I see huge difficulties.

18.00 | 0 komentar | Read More

Buy SBI on dips: Parag Thakkar

Parag Thakkar of HDFC Securities recommends buying State Bank of India on any dip.

Parag Thakkar of HDFC Securities told CNBC-TV18, "My top pick remains State Bank of India (SBI), on every dip I would like to recommend. There is a QIP overhang where there will be another Rs 12,000 crore worth of stock coming into the market. Any decline is a buying opportunity."

On Thursday, State Bank of India closed at Rs 281.55, down Rs 5.05, or 1.76 percent. It has touched an intraday high of Rs 290.50 and an intraday low of Rs 280.75.

The company's trailing 12-month (TTM) EPS was at Rs 16.61 per share. (Dec, 2014). The stock's price-to-earnings (P/E) ratio was 16.95. The latest book value of the company is Rs 158.43 per share. At current value, the price-to-book value of the company was 1.78. The dividend yield of the company was 1.07 percent.

18.00 | 0 komentar | Read More

Here are stocks that were buzzing in trade today

CNBC-TV18's Varinder Bansal lists some of the key stocks which were buzzing in trade today.

CNBC-TV18's Varinder Bansal lists some of the key stocks which were buzzing in trade today.

Watch video for more.

18.00 | 0 komentar | Read More

Buy Cipla, says Rahul Mohindar

Written By Unknown on Rabu, 18 Maret 2015 | 18.00

Rahul Mohindar of viratechindia.com recommends buying Cipla as the stock may move towards Rs 780-775.

Rahul Mohindar of viratechindia.com told CNBC-TV18, "I would play safe and look at Cipla and Dr Reddy's Labs . Even at Rs 710 something like Cipla could be bought into. We would be looking at targets more towards Rs 780 or Rs 775. So I still think pharma is positive from an Index perspective."

The company's trailing 12-month (TTM) EPS was at Rs 15.49 per share. (Dec, 2014). The stock's price-to-earnings (P/E) ratio was 45.97. The latest book value of the company is Rs 125.68 per share. At current value, the price-to-book value of the company was 5.67. The dividend yield of the company was 0.28 percent.

Disclosure: Analyst does not personally hold the stocks but may have made recommendation earlier on.

18.00 | 0 komentar | Read More

Mengenai Saya

Popular Posts Today

Written By Unknown on Selasa, 31 Maret 2015 | 18.01

Written By Unknown on Senin, 30 Maret 2015 | 18.00

Written By Unknown on Minggu, 29 Maret 2015 | 18.00

Written By Unknown on Sabtu, 28 Maret 2015 | 18.00

Written By Unknown on Jumat, 27 Maret 2015 | 18.00

Written By Unknown on Kamis, 26 Maret 2015 | 18.00

Written By Unknown on Rabu, 25 Maret 2015 | 18.00

Written By Unknown on Selasa, 24 Maret 2015 | 18.00

Written By Unknown on Senin, 23 Maret 2015 | 18.00

Written By Unknown on Minggu, 22 Maret 2015 | 18.00

Written By Unknown on Sabtu, 21 Maret 2015 | 18.00

Written By Unknown on Jumat, 20 Maret 2015 | 18.00

Written By Unknown on Kamis, 19 Maret 2015 | 18.00

Written By Unknown on Rabu, 18 Maret 2015 | 18.00

Links

Arsip Blog

Label