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Budget Reactions: No dramatic change in market trajectory: Akash Prakash

Written By Unknown on Kamis, 28 Februari 2013 | 18.00

Thu, Feb 28, 2013 at 16:11

Akash Prakash, fund manager and chief executive office, Amansa Capital, speaking to CNBC, says he is disappointed that this is a budget which has nothing dramatically new, no big bang reforms.

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Budget Reactions: No dramatic change in market trajectory: Akash Prakash

Akash Prakash, fund manager and chief executive office, Amansa Capital, speaking to CNBC, says he is disappointed that this is a budget which has nothing dramatically new, no big bang reforms.

Like this story, share it with millions of investors on M3

Budget Reactions: No dramatic change in market trajectory: Akash Prakash

Akash Prakash, fund manager and chief executive office, Amansa Capital, speaking to CNBC, says he is disappointed that this is a budget which has nothing dramatically new, no big bang reforms.

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To download current article in Word format, click here.

I think we are now back to trading on global factors, and our own fundamentals.

Akash Prakash

CEO

Amansa Capital

Akash Prakash, fund manager and chief executive office, Amansa Capital, speaking to CNBC, says he is disappointed that this is a budget which has nothing dramatically new, no big bang reforms.

 

Here are edited excerpts of the discussion



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Budget Reactions: Bourse-access boost to MFs, insurance: Motilal Oswal AMC

Thu, Feb 28, 2013 at 16:12

In an era where it is incumbent upon the distributors and advisors to provide good advice and seamless service with single page view on all asset classes, enabling mf distributors to access the stock exchange platform that rides on robus depository backbone is an excellent move.

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Budget Reactions: Bourse-access boost to MFs, insurance: Motilal Oswal AMC

In an era where it is incumbent upon the distributors and advisors to provide good advice and seamless service with single page view on all asset classes, enabling mf distributors to access the stock exchange platform that rides on robus depository backbone is an excellent move.

Like this story, share it with millions of investors on M3

Budget Reactions: Bourse-access boost to MFs, insurance: Motilal Oswal AMC

In an era where it is incumbent upon the distributors and advisors to provide good advice and seamless service with single page view on all asset classes, enabling mf distributors to access the stock exchange platform that rides on robus depository backbone is an excellent move.

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To download current article in Word format, click here.

ABOUT THE EXPERT

Aashish Somaiyaa

Mr. Somaiyaa brings with him rich and varied experience - with more than 13 years in sales and distribution

Aashish Somaiyaa
Motilal Oswal AMC  

1) In an era where it is incumbent upon the distributors and advisors to provide good advice and seamless service with single page view on all asset classes, enabling MF distributors to access the stock exchange platform that rides on robus depository backbone is an excellent move. We urge all intermediaries to take maximum benefit of the same.

2) I believe ETFs can aid alpha creation and better returns for insurance portfolios at a very low cost. It's a welcome move and we will work hard to showcase Motilal Oswal's innovations like access to Nasdaq and CNX-midcap 100 etc to the insurance and pension managers' audience. STT reduction on ETF is a further boost to aiding returns with lower transaction costs.


To download current article in Word format, click here.

highlights

  • No case to revise direct tax rates, slabs: FM
  • Super rich tax: 10% surcharge on income above Rs 1 cr: FM
  • Increase excise duty on SUV's from 27% to 30%: FM
  • No change in standard rate of excise duty, service tax: FM
more »

flashes

  • Budget Has Taken Big Steps In Reducing Subsidies, Says RBI
  • Budget Creates Fiscal Space For Private Borrowing, Says RBI
  • Budget Sets Stage For Lowering Twin Deficits, Says RBI
  • Budget Reaction: RBI Says Inflation-indexed Bond Increases Options For Savers
more »

InterpretationS

  • GAAR-Presumes tax benefit unless proved contrary
  • MFs covered for deductions u/s 80CCG
  • Excise duty increased on mobile phones of Retail Sale Price (RSP) more than Rs 2000
  • ED on readymade garments exempted: positive textile sector
more »

SECTOR IMPACT

Select Sector to see impact

  • Auto - Cars & Jeeps
  • Auto - LCVs/HCVs
  • Banks - Private Sector
  • Banks - Public Sector
  • Cigarettes
  • Computers - Hardware
  • Computers - Software - Training
  • Construction and Contracting - Real Estate
  • Electricals
  • Engineering - Heavy
  • Finance - General
  • Finance - Investments
  • Infrastructure - General
  • Leather Products
  • Media & Entertainment
  • Mining/Minerals
  • Miscellaneous
  • Personal Care
  • Pesticides/Agro Chemicals
  • Power - Generation/Distribution
  • Refineries
  • Shipping
  • Sugar
  • Textiles - Denim
  • Textiles - General

Textiles - General

13:53 pm

Exice Duty on readymade garments exempted +ve for textile sector

EXPECTATIONS

expectation on: Business

Uday Kotak

Executive Vice-Chairman and Managing Director | Kotak Mahindra Bank

expectation on: Policy

Vetri Subramaniam

CIO | Religare Mutual Fund

expectation on: Markets

Raamdeo Agrawal

Joint MD | Motilal Oswal

expectation on: Markets

Atul Suri

NULL | Trader

expectation on: Policy

Pankaj Vaish

Head South Asia Markets | Citi


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Union Budget 2013: Why Chidu's Lo-Cal budget is a flop-show

by R Jagannathan, Editor, Web18

If Palaniappan Chidambaram's eighth Budget has not set the markets on fire, it can be easily explained: his first goal was to avoid doing damage to investor confidence, which is what his predecessor managed to do. And unlike his own 2008 budget, which set the stage for the economy's long-term slide and made inflation intractable, Budget 2013-14 has taken the middle path of low ambition and low risk.

There is thus nothing in it to excite anybody, not even his own party. He has delivered on his promise of providing a "responsible" budget, which the markets misunderstood to mean something that will send the adrenalin pumping. That was not on, and the FM restrained himself from any dose of excess populism.

A lo-calorie budget is not meant to energise anybody. It is meant to get the fat down.

If the markets are moping right now, with the Sensex and Nifty heading south, it's because Chidambaram has already given them enough room for optimism before the budget. The markets wanted more of the same, but he could not oblige.

A lo-calorie budget is not meant to energise anybody. It is meant to get the fat down.

Before we rush to condole those left out of accessing the meagre basket of goodies, it is worth summarising the core proposals made in the budget. Chidambaram has raised Rs 18,000 crore of additional revenue through direct and indirect taxes, the former mostly by taxing companies more. Excise and customs remain more or less the same, with no changes in base rates.

The concessions, both to populism and the middle classes, are minor: there is a token Rs 10,000 crore additional provision for Sonia Gandhi's Food Security Bill, some very small personal income tax reliefs, and an additional deduction of Rs 1 lakh for interest paid on first home loans (over and above existing Rs 1.5 lakh). Plus there are promises on new savings instruments sold through post offices that will be inflation-indexed. But these will not be more than sideshows to the main avenues currently available for savings.

On the corporate side, while the surcharge on income-tax is up from 5 to 10 percent for companies with taxable incomes above Rs 10 crore, this blow is balanced by giving manufacturing companies that invest more than Rs 100 crore in plant and machinery over the next two years (2013-15) a 15 percent investment allowance.

To be fair to Chidambaram, his only real promise was to deliver a 5.3 percent fiscal deficit this year and to stick to prudence next year. He has cut the 2012-13 deficit to 5.2 percent, and stayed with 4.8 percent in 2013-14.

The story lies in how he has achieved this miracle. Basically, what he did was to stamp hard on all capital expenditure in the last quarter of 2012-13, which is why the plan expenditure is down by 18 percent from the budget estimate of Rs 5.21 lakh crore to Rs 4.29 lakh crore. He has stashed the savings away for a better splurge in 2013-14, with plan expenses up to Rs 5.55 lakh crore, a near 30 percent jump.

This is good for near-term growth, for it means that the government will start spending from 1 April, pushing investments in the economy.

But where Chidambaram's numbers start to look shaky is, as usual, in his assumptions.

The budget assumes a GDP growth of 13.4 percent which is almost the same as in 2012-13, where the government came a cropper. The Economic Survey put out GDP figures of 6.1-6.7 percent, and if we assume average inflation of 6 percent in 2013-14, we will end up with a GDP growth projection in the range of 12.5 percent, or thereabouts.

Thus 13.4 percent is a bit of a stretch, even given the higher outlays for plan expenditure next year. Unless, inflation rips again which cannot be ruled out.

More doubtful are the figures for revenue growth. The budget projects a sharp 21 percent growth in revenues, aided by a 33 percent rise in non-tax revenues. Capital receipts, which include earnings from disinvestment and spectrum sales, are more than double, up from Rs 24,000 crore this year to Rs 55,814 crore. The core tax revenue is the slowest-growing part at 19 percent.

Put another way, Chidambaram is budgeting for a 21 percent growth in overall revenues (tax and non-tax) on the back of 13.4 percent growth in GDP.

Also unrealistic is the meagre 4 percent growth shown in gross borrowings at Rs 5,42,499 crore. This could mean that a lot of the redemptions of existing loans will be paid out of the cash he has stashed away since December by not allowing ministries to spend, but this number will need more detailed scrutiny.

But for the ordinary man on the street, Budget 2013-14 is unexciting because there is very little in it for him.

Chidambaram's concessions to middle class taxpayers and the capital markets are mere tokenism. There is no increase in the basic tax exemption limit, but taxpayers with incomes upto Rs 5 lakh get token tax credits of Rs 2,000 each.

The super rich, those 42,000-and-odd people who declare incomes above Rs 1 crore, will face an additional surcharge of 10 percent. Property buyers (for properties valued at more than Rs 50 lakh) will have to deduct one percent TDS from what they pay to sellers. The rich will also have to pay more for buying SUVs (30 percent excise).

It will irritate, but it's not quite a deal-breaker for the rich.

More neutral between rich and not-so-rich is the surcharge on the dividend distribution tax, which is up from 5 to 10 percent for next year. Sin taxes on cigarettes are also up.

While the securities transaction tax (STT) is cut for equity derivatives, mutual funds and exchange-traded funds, it is now applicable to the non-food commodity futures.

The Rajiv Gandhi Equity Savings Scheme, a flop show in its first avatar, is being pumped with steroids by raising the income limit for first-time investors from Rs 10 lakh to Rs 12 lakh. The scheme is supposed to be liberalised, but it is still colourless. Rajiv Gandhi would hardly want to be associated with this loser.

The budget's real weakness is that it is not decisive enough in any direction.

Chidambaram's budget is safe and sensible for the kind of times we are living in. It has not lived up to expectations primarily because the FM wanted to be safe rather than sorry. His risk-taking instincts were not in evidence today. He wants to live to fight another day.



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U.S. plans medical, food aid for Syrian rebels

By Arshad Mohammed and Khaled Yacoub Oweis

ROME (Reuters) - The United States may provide medical supplies and food directly to Syrian rebels for the first time, and a European diplomat held out the prospect of possible Western military support.

The diplomat, speaking on the margins of a meeting in Rome between the Syria's main civilian opposition and its Western and Arab backers, said the two sides would meet in Istanbul to discuss military and humanitarian support to the rebels.

U.S. Secretary of State John Kerry was expected to announce new non-lethal assistance to opponents of Syrian President Bashar al-Assad at the Rome talks, but sources familiar with the matter said this would not extend to items such as bullet-proof vests, armoured-personnel vehicles and military training for now.

The sources said providing medical supplies and food aid direct to the insurgents represented a policy shift.

A U.S. State Department spokeswoman travelling with Kerry to the "Friends of Syria" meeting declined comment.

The Friends of Syria will condemn countries that provide weapons to Assad's government and denounce its use of Scud missiles within Syria, a source in the Rome talks said.

The Syrian government denies using the ballistic missiles.

Russia, a staunch ally of Syria, openly says it is supplying military equipment to Damascus, but opposition and Western countries also accuse Iran of sending weapons.

The U.S. policy shift would reflect a desire to do more to help the opposition in the conflict, in which an estimated 70,000 people have died since anti-Assad protests erupted nearly two years ago.

But it would stop far short of a full-blown military intervention, for which Washington appears to have no appetite.

EXASPERATED OPPOSITION

The moves, however, might not satisfy some members of the Syrian National Coalition, which last week said it would boycott the conference out of frustration at not receiving more assistance, and only agreed to come on Monday.

They say Western reluctance to arm rebels only plays into the hands of Islamist militants now widely seen as the most effective forces in the struggle to topple Assad.

A coalition source said the planned U.S. steps were a continuation of what he described as an American policy of wanting "no winners, no losers" in the conflict.

He said that what he viewed as the relatively small size of the coalition delegation in Rome reflected strong expectations that the meeting would not come up with substantial support.

"There is a major current in the coalition that wanted to send a message that enough is enough and that the coalition will not go along with whatever the United States has in mind and (just) say 'thank you,'" the source said.

Even if Washington were to commit to supply weapons, there was no guarantee it would keep up the supply, the source said.

"Here and there, every once in a while the armed opposition get some decent weapons, but the supply is so patchy that it renders the weapons useless," he said.

"What is the use of a sophisticated gun for example without a constant supply of ammunition?"

The White House has long resisted providing weaponry to the rebel forces, arguing there was no way to guarantee the arms might not fall into the hands of militants who might eventually use them against Western or Israeli targets.

"HUGE DEBATE"

U.S. officials have said that the U.S. Defense and State Departments, under former Secretary of Defense Leon Panetta and former Secretary of State Hillary Clinton, privately recommended that the White House arm the rebels but were overruled.

"It's a huge debate inside the administration between those that have to deal with Syria on an everyday basis, the State Department and DoD particularly, and the White House, which ... until now has vetoed any kind of outreach to the armed groups," said Andrew Tabler, senior fellow at the Washington Institute for Near East Policy, a think-tank in the U.S. capital.

The United States has not so far given aid directly to the rebel fighters and a decision to provide medical supplies and food in the form of Meals Ready to Eat (MREs), the U.S. army's basic ration, would reverse that policy.

Kerry, who took over as secretary of state on February 1, signalled that he wanted the United States to do more, saying on Monday that "the Syrian opposition is not going to be dangling in the wind wondering where the support is or if it's coming."

The source who said that the United States was expected to announce a large increase in assistance to the Syrian National Coalition said the group would receive substantially more than the rebel fighters, but declined to divulge either sum.

The United States so far has provided more than $50 million in non-lethal assistance such as communications gear and governance training to the Syrian civilian opposition, according to a U.S. State Department fact sheet.

The coalition source, however, said giving the coalition even another $50 million was a pittance compared to what he said was the $40 million a day in humanitarian aid needed to meet the basic needs of Syrian refugees and internally displaced persons.

The United States has provided some $365 million in humanitarian aid for Syrian refugees in countries such as Turkey, Jordan and Lebanon and for internally displaced people, channelling this money through non-governmental organisations.

More than 40,000 people a week are fleeing Syria and the total number of refugees will likely pass 1 million in less than a month, far sooner than the United Nations had forecast, a senior U.N. official told the Security Council on Wednesday.

U.N. High Commissioner for Refugees António Guterres said his agency had registered 936,000 Syrians across the Middle East and North Africa, nearly 30 times as many as in April last year.

"We expected to have 1.1 million Syrian refugees by June. If things continue to accelerate like this, it will take less than a month to reach that number," he told the 15-member council. (Editing by Alistair Lyon and Jon Boyle)



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Gold imports likely to fall on lower inflation: Rajan

Written By Unknown on Rabu, 27 Februari 2013 | 18.00

Wed, Feb 27, 2013 at 16:06

INDIA-BUDGET-GOLD-RAGHURAM-RAJAN:Gold imports likely to fall on lower inflation: Rajan

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Gold imports likely to fall on lower inflation: Rajan

INDIA-BUDGET-GOLD-RAGHURAM-RAJAN:Gold imports likely to fall on lower inflation: Rajan

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Gold imports likely to fall on lower inflation: Rajan

INDIA-BUDGET-GOLD-RAGHURAM-RAJAN:Gold imports likely to fall on lower inflation: Rajan

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NEW DELHI (Reuters) - India's gold imports are likely to come down because of lower inflation and more attractive financial instruments for saving, said Raghuram Rajan, the finance minister's top economic adviser, on Wednesday.

Gold, used as an inflation hedge by Indian savers, is a major driver of the country's record current account deficit and the government raised tariffs on imports of the metal this year. Inflation has trended downward in recent months.

(Reporting By Rajesh Kumar Singh; Writing by Frank Jack Daniel; Editing by Arup Roychoudhury)


highlights

  • No hike in passenger fees by Railways
  • Railways propose hike in Reservation fee, Tatkal charge
  • Freight rates to go up by 5.8%
  • Railways to launch 67 new express trains, 26 new passenger trains
more »

flashes

  • Economic Survey in favour of widening tax base and prioritising expenditure
  • WPI inflation may decline to 6.2-6.6% in March
  • Indian economy likely to grow at 6.1-6.7% in FY14
  • FY13 GDP growth seen at 5%
more »

InterpretationS

  • Railway minister has done a commendable job in meeting competing demands of improving services and controlling expenditure: PM
  • It is a reformist and forward- looking Budget: PM
  • If you look at the overall Budget, it was relatively muted and there was nothing exciting and no steps were taken, which would make the market happy: ICICI Direct
  • There is no major capex from the civil construction on the freight corridor, though some investments are coming on the metro side: KEC International
more »

SECTOR IMPACT

Select Sector to see impact

  • Cement - Major
  • Infrastructure - General
  • Mining/Minerals

EXPECTATIONS

expectation on: People

Saurabh Mukherjea

Head of Equities | Ambit Capital

expectation on: Markets

Ridham Desai

MD and Head Of India Research | Morgan Stanley

expectation on: Markets

Ashok Wadhwa

Group CEO | Ambit Holdings

expectation on: Business

Laurent Dhaeyer

MD | Ogone Asia and EBS

expectation on: Markets

Rajesh Iyer

Head Investments & Family Office | Kotak Wealth Management


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Sensex rallies as Survey says worst for eco over; Jet soars

Wed, Feb 27, 2013 at 16:10

Equity benchmarks rallied Wednesday after the Economic Survey said that the current economic downturn may have run its course, and things were looking up. Midcap shares continued to be under pressure as cash-strapped traders unwound their positions, unable to pay the margins required to hold them.

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Sensex rallies as Survey says worst for eco over; Jet soars

Equity benchmarks rallied Wednesday after the Economic Survey said that the current economic downturn may have run its course, and things were looking up. Midcap shares continued to be under pressure as cash-strapped traders unwound their positions, unable to pay the margins required to hold them.

Like this story, share it with millions of investors on M3

Sensex rallies as Survey says worst for eco over; Jet soars

Equity benchmarks rallied Wednesday after the Economic Survey said that the current economic downturn may have run its course, and things were looking up. Midcap shares continued to be under pressure as cash-strapped traders unwound their positions, unable to pay the margins required to hold them.

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16:10

Moneycontrol Bureau
Equity benchmarks rallied Wednesday after the Economic Survey said that the current economic downturn may have run its course, and things were looking up. Midcap shares continued to be under pressure as cash-strapped traders unwound their positions, unable to pay the margins required to hold them.

ALSO READ:  Govt needs to take tough steps to revive economy: Economic Survey

The Sensex rose 137.27 points to close at 19152.41 and the Nifty ended at  5796.90, up 35.55 points over the previous close.

Brokers say stocks would have also got a leg up due to short covering of positions after Tuesday's crash when the Sensex shed over 300 points.

But they said today's rise notwithstanding, near term outlook on the market had soured, unless the Finance Minister had some solid positive surprises in the Budget. The Economic Survey too raised plenty of red flags even as it provided a glimmer of hope.

Jet Airways led gainers in the Sensex, climbing as much as 20 percent intra-day after Etihad Airways said it had paid USD 70 million for three slots of Jet at London's Heathrow airport. The stock closed at Rs 534.85, up 19.3 percent over its previous close. The latest development raised hope among investors that Etihad is on track to buy a stake in Jet. The stock had fallen sharply on Tuesday on concerns that the deal may not materialize.

Larsen & Toubro, ONGC, Bajaj Auto, Mahindra & Mahindra and BHEL were the other key gainers, rising between 2-3 percent.

Core Education was the biggest loser among midcaps, falling 46 percent to close at Rs 60, even as the management maintained that the company was doing fine operationally.

In the last three sessions, the stock has fallen nearly 80 percent.

Shares of Educomp Solutions, Opto Circuits, Pipavav Defence, Welspun Corp and Delta Corp were down between 4-8 percent.


Tags: Midcap shares, Economic Survey 2012-13, Sensex, Nifty, Raghuram Rajan, Economic Survey, Economic Survey News, Economic Survey India, India Economic Survey, Economic Survey 2013, Economic Survey Report, Ministry of Finance, Economic Survey Highlights, Food Security Bill, Economic survey 2013-14, Annual economic survey 2013, Indian economic survey 2013, Economic survey updates, Economic survey analysis, Economic survey opinion, Economic survey 2013 reviews

highlights

  • No hike in passenger fees by Railways
  • Railways propose hike in Reservation fee, Tatkal charge
  • Freight rates to go up by 5.8%
  • Railways to launch 67 new express trains, 26 new passenger trains
more »

flashes

  • Economic Survey in favour of widening tax base and prioritising expenditure
  • WPI inflation may decline to 6.2-6.6% in March
  • Indian economy likely to grow at 6.1-6.7% in FY14
  • FY13 GDP growth seen at 5%
more »

InterpretationS

  • Railway minister has done a commendable job in meeting competing demands of improving services and controlling expenditure: PM
  • It is a reformist and forward- looking Budget: PM
  • If you look at the overall Budget, it was relatively muted and there was nothing exciting and no steps were taken, which would make the market happy: ICICI Direct
  • There is no major capex from the civil construction on the freight corridor, though some investments are coming on the metro side: KEC International
more »

SECTOR IMPACT

Select Sector to see impact

  • Cement - Major
  • Infrastructure - General
  • Mining/Minerals

EXPECTATIONS

expectation on: People

Saurabh Mukherjea

Head of Equities | Ambit Capital

expectation on: Markets

Ridham Desai

MD and Head Of India Research | Morgan Stanley

expectation on: Markets

Ashok Wadhwa

Group CEO | Ambit Holdings

expectation on: Business

Laurent Dhaeyer

MD | Ogone Asia and EBS

expectation on: Markets

Rajesh Iyer

Head Investments & Family Office | Kotak Wealth Management


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Global scenario greater mkt risk than Budget: Pramerica

John Praveen, board member, Pramerica Mutual Fund says that FIIs will be closely observing the FM's focus on fiscal consolidation in the Budget and adds that the finance minister will need to balance growth and reining-in the deficit. "I do not expect global cues to improve in the near-term and may prove to be of greater risk to the market than the Budget," he told CNBC-TV18.

Below is the edited transcript of the analysis on CNBC-TV18

Q1: What is your outlook on the Union Budget in the backdrop of the global scenario turning sticky? Do you expect the market to emerge stronger?

A: The Budget is being presented against the backdrop of some big headwinds in the global markets such as the election uncertainty in Italy, sequester fight in the US later this week and risks from Spain. It is in the backdrop of these near-term global challenges, which have troubled the market, that the finance minister is going to present the Budget.

But the finance minister is a savvy politician and is fully aware of the challenges involved thanks to the recent road-shows abroad and excellent advice from experts. So all eyes are on the steps that he will taking to address the deficit and put India back on a high-growth trajectory.

Q: Do you expect the global situation to get worse and present a much bigger risk to the market than even changes in policy?

A: In the near term, the global scenario shows no signs of improvement as the Italian elections have almost made real the worst that could be estimated and the risks of a gridlock are high. So all the fear and anxiety that emerged last year after the first Greek elections is going to come to play for the next few weeks and is going to weigh-in on the Indian market even though the finance minister might deliver on the Budget.



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Emotional Pope bids farewell "with profound serenity"

Wed, Feb 27, 2013 at 16:16

POPE-RESIGNATION-SPEECH:Emotional Pope bids farewell "with profound serenity"

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Emotional Pope bids farewell "with profound serenity"

POPE-RESIGNATION-SPEECH:Emotional Pope bids farewell "with profound serenity"

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Emotional Pope bids farewell "with profound serenity"

POPE-RESIGNATION-SPEECH:Emotional Pope bids farewell "with profound serenity"

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VATICAN CITY (Reuters) - Pope Benedict bade an emotional farewell at his last general audience on Wednesday, saying he understood the gravity of his decision to become the first pontiff to resign in 700 years but he had done it for the good of the Church.

"I took this step in full awareness of its gravity and rarity but also with profound serenity of spirit," he told a packed crowd in Saint Peter's Square.

He said he was not "coming down from the cross" despite renouncing his office but would remain in the service of the church through prayer. He asked the faithful to pray for the cardinals and whoever they chose as his successor.

(Reporting By Phillip Pullella; writing by James Mackenzie, editing by Barry Moody)


highlights

  • No hike in passenger fees by Railways
  • Railways propose hike in Reservation fee, Tatkal charge
  • Freight rates to go up by 5.8%
  • Railways to launch 67 new express trains, 26 new passenger trains
more »

flashes

  • Economic Survey in favour of widening tax base and prioritising expenditure
  • WPI inflation may decline to 6.2-6.6% in March
  • Indian economy likely to grow at 6.1-6.7% in FY14
  • FY13 GDP growth seen at 5%
more »

InterpretationS

  • Railway minister has done a commendable job in meeting competing demands of improving services and controlling expenditure: PM
  • It is a reformist and forward- looking Budget: PM
  • If you look at the overall Budget, it was relatively muted and there was nothing exciting and no steps were taken, which would make the market happy: ICICI Direct
  • There is no major capex from the civil construction on the freight corridor, though some investments are coming on the metro side: KEC International
more »

SECTOR IMPACT

Select Sector to see impact

  • Cement - Major
  • Infrastructure - General
  • Mining/Minerals

EXPECTATIONS

expectation on: People

Saurabh Mukherjea

Head of Equities | Ambit Capital

expectation on: Markets

Ridham Desai

MD and Head Of India Research | Morgan Stanley

expectation on: Markets

Ashok Wadhwa

Group CEO | Ambit Holdings

expectation on: Business

Laurent Dhaeyer

MD | Ogone Asia and EBS

expectation on: Markets

Rajesh Iyer

Head Investments & Family Office | Kotak Wealth Management


18.00 | 0 komentar | Read More

MCX GOLDGUINEA Feb contract trades firm

Written By Unknown on Senin, 25 Februari 2013 | 18.00

GOLDGUINEA prices on MCX were trading firm. At 15:53 hrs MCX GOLDGUINEA February contract was trading at Rs 23384 up Rs 37, or 0.16%. The GOLDGUINEA rate touched an intraday high of Rs 23397 and an intraday low of Rs 23282. So far 5063 contracts have been traded. GOLDGUINEA prices have moved down Rs 2594, or 9.99% in the February series so far.

At 15:52 hrs MCX GOLDGUINEA March contract was trading at Rs 23637 up Rs 13, or 0.06%. The GOLDGUINEA rate touched an intraday high of Rs 23651 and an intraday low of Rs 23572. So far 6669 contracts have been traded. GOLDGUINEA prices have moved down Rs 1453, or 5.79% in the March series so far.

At 15:53 hrs MCX GOLDGUINEA April contract was trading at Rs 23905 up Rs 3, or 0.01%. The GOLDGUINEA rate touched an intraday high of Rs 23960 and an intraday low of Rs 23765. So far 1352 contracts have been traded. GOLDGUINEA prices have moved down Rs 634, or 2.58% in the April series so far.



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MCX SILVER July contract gains

SILVER prices on MCX gained. At 15:56 hrs MCX SILVER March contract was trading at Rs 53909 up Rs 207, or 0.39%. The SILVER rate touched an intraday high of Rs 53967 and an intraday low of Rs 53512. So far 20175 contracts have been traded. SILVER prices have moved down Rs 2886, or 5.08% in the March series so far.

At 15:56 hrs MCX SILVER May contract was trading at Rs 55319 up Rs 196, or 0.36%. The SILVER rate touched an intraday high of Rs 55376 and an intraday low of Rs 54945. So far 2054 contracts have been traded. SILVER prices have moved down Rs 10182, or 15.54% in the May series so far.

At 15:49 hrs MCX SILVER July contract was trading at Rs 56627 up Rs 220, or 0.39%. The SILVER rate touched an intraday high of Rs 56650 and an intraday low of Rs 56236. So far 44 contracts have been traded. SILVER prices have moved down Rs 8383, or 12.89% in the July series so far.



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Orient Green soars 10% on open offer by Shriram Industrial

Shares of Orient Green Power Company rallied more than 10 percent intraday on Monday as the Shriram Group, the promoter group announced an open offer to buy 26 percent stake in the company at a price of Rs 15 per share (nearly 15 percent higher over its Friday's closing price).

Axis Capital, the manager to the open offer, informed public shareholders for acquisition of up to 14,77,00,345 equity shares, representing 26 percent stake, at a price of Rs 15 per share by Shriram Industrial Holdings Private (acquirer) and Orient Green Power PTE Ltd and Shriram Venture Ltd, in their capacity as persons acting in concert with the acquirer.

Meanwhile, the board of directors of the company approved the preferential allotment of 10 crore equity shares at a price of Rs 15 per share to Shriram Industrial Holdings Private Limited.

Orient Green Power Pte Ltd holds 55.99 percent stake in the company as of December 2012.

Shares gained 9.63 percent to close at Rs 14.34 amid large volumes on Bombay Stock Exchange.

Trading volumes increased nearly 6 times to 24,81,550 shares as against five-day average of 4,25,825 shares.

In the previous trading session (Friday), the stock moved up 13.15 percent to close at Rs 13.08.



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Cairn India commences exploration drilling programme in Rajasthan block

Mon, Feb 25, 2013 at 16:16

Cairn India has today commenced drilling of the first exploration well, after a gap of more than four years, in the prolific Barmer Basin. This has enabled Cairn India to commence its planned aggressive exploration drilling programme to help harness the full potential of the Barmer Basin in Rajasthan.

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Cairn India commences exploration drilling programme in Rajasthan block

Cairn India has today commenced drilling of the first exploration well, after a gap of more than four years, in the prolific Barmer Basin. This has enabled Cairn India to commence its planned aggressive exploration drilling programme to help harness the full potential of the Barmer Basin in Rajasthan.

Like this story, share it with millions of investors on M3

Cairn India commences exploration drilling programme in Rajasthan block

Cairn India has today commenced drilling of the first exploration well, after a gap of more than four years, in the prolific Barmer Basin. This has enabled Cairn India to commence its planned aggressive exploration drilling programme to help harness the full potential of the Barmer Basin in Rajasthan.

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Cairn India Ltd has informed BSE regarding a Press Release dated February 25, 2013 titled "Commencement of Exploration Drilling programme in the Rajasthan block - Spudding of the first well after a four year hiatus". The company today commenced drilling of the first exploration well, after a gap of more than four years, in the prolific Barmer Basin. This has enabled Cairn India to commence its planned aggressive exploration drilling programme to help harness the full potential of the Barmer Basin in Rajasthan.Source : BSE

Read all announcements in Cairn India

To read the full report click here

From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'

The latest earning numbers FIRST on CNBC-TV18


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CBI moves HC to cancel bail of three accused in DCI scam

Written By Unknown on Minggu, 24 Februari 2013 | 18.00

Chennai, Feb 23 (PTI) The CBI has moved the Madras High Court seeking to cancel the bail granted to three persons in connection with the Dental Council of India bribe scam. Special Public Prosecutor for CBI cases N Chandrasekharan submitted that the accused were not only interfering in the investigation by influencing witnesses, but also trying to demoralise the investigating officer by using foul means. CBI had on January 7 last registered a case against Dr S Murukesan, DCI member, for allegedly demanding Rs one crore from Adhiparasakthi Dental College and Hospital at Melmaruvathur near here, for getting the body's approval for the PG course. He had also received Rs 25 lakh as the first instalment, it alleged. S Srilekha, Managing Director of the Trust running the college was earlier released on bail on January 24. K Ramabadran, Administrative Officer of the college and R Karunanidhi, trustee in the Trust, were ordered to be released on bail on February 13, on the condition that they would not tamper with evidence or hamper investigation. CBI also submitted that the conduct of the accused showed that they were influencing witnesses and destroying evidence also. PTI DSJ BN VMN NTR


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Kalam inaugurates three-day science fair at Ghaziabad

Sat, Feb 23, 2013 at 23:02

Kalam inaugurates three-day science fair at Ghaziabad

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Kalam inaugurates three-day science fair at Ghaziabad

Kalam inaugurates three-day science fair at Ghaziabad

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Kalam inaugurates three-day science fair at Ghaziabad

Kalam inaugurates three-day science fair at Ghaziabad

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Ghaziabad, Feb 23 (PTI) Former President A P J Abdul Kalam today asked students to conserve electricity so that it could be saved for the future and utilised in important projects of the country. In an interaction with students after inaugurating a three-day science fair at Harsaw Police Line here, Kalam stressed upon the need of saving energy for the country's progress. Students can contribute to nation's development by saving energy, he said. Kalam inspected the fair and motivated students to take interest in science. Ghaziabad District Authority vice-chairman Santosh Yadav, SSP Prashant Kumar, Joint Magistrate Amit Singh and other senior officials of the district were present on the occasion. PTI Corr KAS

From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'

The latest earning numbers FIRST on CNBC-TV18


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Italian election: Will it be a hung parliament?

Italy goes to election on Sunday and Monday with no clear indication of a definite outcome. So, will Italy go the Greece way; will it need a second election, what impact will that have on the Euro Zone and of course on global markets?

Euro looks weak ahead of polls in Italy: StanChart

In an interview to CNBC-TV18, Alessandro Mercuri, Interest Rate Strategist at Lloyds Banking Group shared his outlook on Italy's election.

Further Mercuri said that there is a degree of uncertainty because of two weeks blackout period for opinion polls. 

Outcome of Italy election deeply uncertain

"Most of the markets are working on the assumption that the coalition led by Pier Luigi Bersani with participation of Mario Monti will be formed after the election. There is also a possibility of a hung parliament," he added.



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How to trade your favourite stocks during Budget week?

If the Budget disappoints the market, Nifty may break 5800, says Sudip Bandyopadhyay, MD & CEO, Destimoney Securities. In such an eventuality, he says, the level of 5500-5600 is likely.

Bandyopadhyay helps investors out with their investment queries as part of moneycontrol.com's initiative Know Your Investment.

Below are his answers to questions investors asked us on our Facebook page.

Dr. Jayesh Gaygol: What is a target of Tinplate in six months? Will it cross Rs 55?

A: Tinplate is India's largest indigenous producer of tin coated and tin free steel sheets providing packaging solutions to the food processing industry and also caters to other industries like Chemicals, Paints, Electronics and Defense etc. It enjoys around 35% market share in India. The company reported strong performance in Dec quarter with 65% growth in topline & 33% in bottomline. Since you are looking for a short term horizon - I believe that in the short term it might move upto 55 levels but one should keep a strict stop loss.

Priya Nambiar: What are your views on Cochin Minerals and Rutile ?

A: CMRL's main product is Synthetic Rutile, which finds application as raw material for the Titanium pigment and titanium sponge/metal industry. Other products are by products.  Ferric Chloride has applications as an etching agent and is an effective coagulant for drinking water and effluent treatment. Ferrous Chloride is coagulant for drinking water and effluent treatment. Iron Hydroxide (Cemox) clay used for brick and tile making.

During H1FY12, net profit rose by 224% to Rs35.0 crore on 50% higher sales of Rs138.6 crore. OP and NP margin stood at 39.6% and 25.3% Vs 20.4% and 11.7% respectively in H1FY12. H1FY13 EPS works out to Rs44.9 Vs Rs13.8 in H1FY12."

There has been improvement in the global demand for Synthetic Rutile/and Ferric Chloride in the sea water desalination plant in Gulf countries and for Ferrous chloride in sewage treatment plants in African Countries. It exports more than 80% of its production and in the current scenario where the Rupee is weakening against the USD, the company could benefit out of higher Rupee realization. These give strong visibility to revenue going forward.  At the CMP of Rs267, the share is trading at a P/E of 3.2x on FY13E and 2.8x on FY14E.

Mukesh Lovely Thareja: What is your call on Titan ?

A: Titan is a good buy for medium / long term.  This is fundamentally a very strong company and will continue to deliver excellent results and growth over the next few years.

Santosh Dubey: I am new in market and want to invest in currency and gold. So please suggest me should I wait some more time to buy gold or should I start buying now?

A: If you are a long term investor, you can start buying gold now.  Gold price will keep fluctuating based on multiple factors in the short term.  However, in the long run, we believe that there is a secular up trend.  But it should also be kept in mind that the return from Gold will not be as spectacular as it was during the last few years.  Gold will provide a steady return of 8-12% over the next 12 months.

Varun Bhatia: I have 50 shares of L&T at Rs 1690 a share? What should I do, hold or sell?

A: L&T is an excellent company.  We believe that prospect of L&T is good in medium / long term.   India's infrastructure story will help L&T.  Being efficient and well managed provides it with an edge.

As soon as the investment cycle starts in India, L&T will be the biggest beneficiary.

Prasad Dhodapkar: What is your call L&T Finance ?

A: L&T Finance is a strong candidate for a banking license.  However, this expectation is already factored in by the market and this reflects in the price.  Considering the parentage and it's fundamental strength, we believe that L&T Finance is a good hold for medium / long term.

Chitresh Lunawat: What is your call on Madhucon Projects ?

A: India's GDP growth has clearly slowed down and both infrastructure and capital goods sectors are suffering the most.  The pains points are yet to be removed.  From the value perspective, the infrastructure companies look attractive.  However, we believe that the time for value buying in these sectors haven't yet come.  It is better to avoid Madhucon Project in short / medium term.

Anshuman Chakrapani: What's your view on JP Associates ?

A: JP Associates is a fundamentally strong company.  However, the problem ailing the infrastructure and capital good sectors, may also affect JP Associates.  At current levels, JP Associates can be acquired for a medium / long term.  However, in the short term, till the economic environment improves, JP Associates may continue to struggle.

Nilesh Gala: What your view on TV18 and Mirza International ? Also can you tell me about Shalimar Paints ?

A: TV18 has corrected significantly in the recent past.  At current levels, this looks good. Exposure can be taken in TV18.

Mirza International has improved performance over the last few quarters.  However it is better to stick to established large cap and mid cap stocks.

Shalimar Paints is one of the leading paints manufacturing companies of India, reported its financial results for the quarter ended 30th Dec, 2012. The Third quarter witnesses a healthy increase in overall sales as well as profitability of the company. The company's net profit jumps to Rs.46.90 million against Rs.37.90 million in the corresponding quarter ending of previous year, an increase of 23.75%. Revenue for the quarter increase 14.63 percent.

At the current market price of Rs 136, the stock P/E ratio is at 14.87 x FY13E and 12.99 x FY14E respectively. Earnings per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.9.15 and Rs.10.47 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 19% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 6.87 x for FY13E and 6.03 x for FY14E. Price to Book Value of the stock is expected to be at 3.18 x and 2.55 x respectively for FY13E and FY14E. We expect that the company surplus scenario is likely to continue for the next years, will keep its growth story in the coming quarters also.

Anuj Khatri: IT majors held out during this recent turbulent ride. Should one go ahead n buy or be at sideline and wait for a dip? Also, I bought drowning Tata Steel at Rs 366. Should I wait for a upswing or get out? Please suggest stop-loss, time horizon?

A: Large cap IT companies have been performing well inspite of the global turmoil.  We believe that TCS and HCL will continue to outperform and deliver good results.  Exposure can be taken whenever there is a correction.

Regarding small and mid cap, one needs to be extremely careful.  While opportunities exist in the market place, performances of these companies are not assured.

TATA Steel has probably seen the worst.  We expect that performance will improve hereon.   Domestic production is increasing as a percentage of overall production.  This should significantly help in overall margins.  The long term investor can explore entering or remaining invested TATA Steel at current levels.



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Sell Texmaco Rail: Rajesh Agarwal

Written By Unknown on Jumat, 22 Februari 2013 | 18.00

Rajesh Agarwal, Eastern Financiers is of the view that one should sell Texmaco.

Agarwal told CNBC-TV18, "I don't think there is any hope for Texmaco Rail and Engineering in the very near future. It has become almost yearly ritual that every time when we near 26th February - that's the Railway Budget day, these kind of stocks start moving up or showing some buzz. But after that, you see volumes really going downs. Maybe some of the stocks would trade around 5,000-10,000 odd volumes per day. So I don't think there is any hope in the stock neither on the volume side nor on the fundamental side to be in this company for a very long term also. This gentleman is looking for a period of only three-four months. So it is better to get out around the Budget day when you might get Rs 3-4 upside from the current market price. Otherwise, I would suggest a sell on the stock."



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Lupin to jump 25% in next 6-9 months, says Agarwal

Rajesh Agarwal of Eastern Financiers advised holding Lupin with a target of at least 25 percent return in the next six-nine months.

Agarwal told CNBC-TV18, "Lupin is a strong stock in pharma sector. Not only hold but I would suggest a buy on this stock for new investors as well. They have reported strong set of numbers; profit after tax was up by around 43 percent. Not only domestic market the entire US, Japan and South African market has grown well."

"The management is looking at improving margins from 20 percent current to 23 percent by this year. The company is on a strong footing and with the new approvals the next year is also going to be very good. We have a target of at least 20-25 percent return in the stock in the next six-nine months. So I would suggest a hold and a buy on dips," Agarwal added.



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Sell Jet Airways; buy Hexaware Tech: Sukhani

Sudarshan Sukhani of s2analytics.com is of the view that one sell Jet Airways while can buy Hexaware Technologies.

Sukhani told CNBC-TV18, " Jet Airways is now cracking down, coming below our support. Rs 550 was strong support level, it has broken that. The message that is now coming is that the uptrend in Jet Airways may well be over. One of the advantages of tracking technicals is that we are flexible. We have been upbeat on Jet Airways from Rs 250 onwards, now it seems that the uptrend is over, so let us step aside and wait for either selling opportunities or simply not buy."

He further added, " Hexaware Technologies , last week suddenly it came in our buy list and it came today. The initial signs are that after a big bear market; Hexaware is building a base and doing the right things. As a positional trader, I would be a buyer in it. It is not an intraday trade and it need not be. If one wants to hold on for something Hexaware is a good option."



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Buy Bharti Airtel: Sukhani

Sudarshan Sukhani of s2analytics.com is upbeat on Bharti Airtel and has recommended buy rating on the stock.

Sukhani told CNBC-TV18, "Telecom is unlikely to go away from the Nifty that is why there is certain amount of difficulty in suggesting a buy. Idea Cellular charts by themselves are very attractive. I would say that a small consolidation has broken out on the upside today."

He further added, "I am very upbeat on Bharti Airtel also. The current correction in Bharti Airtel is a buying opportunity. Given the fact that markets could be choppy, we could see a new relief rally moving towards the Budget."



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Buy La Opala RG; target Rs 330: Firstcall Research

Written By Unknown on Kamis, 21 Februari 2013 | 18.00

Firstcall Research is bullish on La Opala RG and has recommended buy rating on the stock with a target price of Rs 330 in its February 20, 2013 research report.

"La Opala RG is engaged into the manufacturing and manufacturing of lifestyle products in tableware segment. The company operates in the glass & glassware segment. During the quarter, the robust growth of Net Profit is increased by 151.78% to Rs. 92.83 million. Net Sales and PAT of the company are expected to grow at a CAGR of 28% and 51% over 2011 to 2014E respectively. Revenue for the quarter rose 64.30% to Rs.501.68 million from Rs.305.35 million, when compared with the prior year period. The company has implemented an expansion in capacity at its Sitarganj unit, while planning modernisation of Madhupur plant. The company entered into the crockery market and introduced a wide range of opalware with a capacity of 688 tons p.a. The company's expansion Project at Sitargunj has been completed successfully & commercial production has started from July, 2012.

The company's net profit jumps to Rs.92.83 million against Rs.36.87 million in the corresponding quarter ending of previous year, an increase of 151.78%. Revenue for the quarter rose 64.30% to Rs.501.68 million from Rs.305.35 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.8.76 a share during the quarter, registering 151.78% increase over previous year period. Profit before interest, depreciation and tax is Rs.148.78 millions as against Rs.73.32 millions in the corresponding period of the previous year.

At the current market price of Rs.295.00, the stock P/E ratio is at 12.59 x FY13E and 9.83 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.23.44 and Rs.30.02 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 28% and 51% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 6.91 x for FY13E and 5.49 x for FY14E. Price to Book Value of the stock is expected to be at 4.67 x and 3.90 x respectively for FY13E and FY14E. We recommend 'BUY' in this particular scrip with a target price of Rs 330 for Medium to Long term investment," says Firstcall Research report.

Bodies Corporate holding more than 50% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.


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MCX SILVERMIC June contract trades lower

SILVERMIC prices on MCX were trading lower. At 16:10 hrs MCX SILVERMIC February contract was trading at Rs 53484 down Rs 244, or 0.45%. The SILVERMIC rate touched an intraday high of Rs 53730 and an intraday low of Rs 53067. So far 86872 contracts have been traded. SILVERMIC prices have moved down Rs 3016, or 5.34% in the February series so far.

At 16:10 hrs MCX SILVERMIC April contract was trading at Rs 54917 down Rs 313, or 0.57%. The SILVERMIC rate touched an intraday high of Rs 55206 and an intraday low of Rs 54545. So far 23274 contracts have been traded. SILVERMIC prices have moved down Rs 8698, or 13.67% in the April series so far.

At 16:07 hrs MCX SILVERMIC June contract was trading at Rs 56141 down Rs 392, or 0.69%. The SILVERMIC rate touched an intraday high of Rs 56488 and an intraday low of Rs 55700. So far 3173 contracts have been traded. SILVERMIC prices have moved down Rs 9360, or 14.29% in the June series so far.



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Union Budget 2013: All eyes on economic revival plans, says Prabhudas

Sandip Sabharwal
Prabhudas Lilladher

The key expectations from the budget this year are all about economic revival. The FM & PM in their pre budget discourses have clearly pointed out that they will be targeting a 4.8 percent Fiscal Deficit next year. The key is how this is achieved. The government has already taken steps to curtail expenditure as well as subsidies. The focus now has to be on economic revival where an improvement in the economy will boost government tax collections, increase employment & prosperity. However this should not be done by increasing taxes in any major manner as in a slowing economy increasing taxes is self destructive. A tight fiscal & monetary policy together is suicidal for the economy and should be avoided. Three moves that the FM can take are:

The biggest reason for a continuous liquidity deficit in the domestic markets, other than of course the tight monetary policy of the RBI has been the rising CAD which is taking domestic liquidity out. Although the government has raised duties on Gold it is improbable that demand will fall drastically just because of this move. The focus should be instead on promoting investment both in Equity & Long term debt. An upfront tax incentive of 10% for saving upto Rs 2,00,000 in Equity Mutual Funds with a 3 year lock in will be attractive for investors. However this should be separate from the tax breaks that come with investing into Tax Saving Mutual Funds under a separate category. A similar tax incentive can be provided for investment into Bank Fixed Deposits with at least a 7 year maturity.

Short term capital gains tax should be abolished on profits from equity mutual funds as well as direct equity. This will have a dual impact - increased participation from domestic investors who have been continuously pulling out money from equity and remove of incentive for Foreign Investors to invest money into India through tax havens. More and more direct and transparent money will come into the country.

It is now time that domestic interest rates come down. My suggestion on this front would be for the government to go in for a long term sovereign bond issue, preferably with a 20 or 30 year maturity. Given extremely low rates available globally and the reduced risk aversion, my estimate is that India can raise 30 year USD money at approximately 4.5 percent.

If the promise to boost economic growth is delivered, then the focus should shift to sectors that benefit from economic growth like Financials, Capital Goods and Infrastructure stock etc. However, a disappointment could see investors continuing with an overweight position in defensives.



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Budget 2013-14: Quick Heal wants sop for domestic IT cos

Kailash Katkar
Quick Heal Technologies

The Union Budget for 2012-13 should incorporate policies and measures to develop the domestic software industry and also focus on encouraging software products segment in the country by protecting it from foreign competition in the domestic market.

The Government should promote Indian software products to develop more Intellectual property for India. The current ecosystem is designed to take care only of service providers and we are losing out on benefits which can accrue from a vibrant product development industry in the software domain. 

Right now the lack of a strong framework in protecting software intellectual property is damaging the overall reputation of the Indian IT industry across the globe. During the tenure of Late Rajiv Gandhi's prime minister ship. A lot of new initiatives were introduced in the software industry. This was done to encourage software services and it propelled the domestic productivity.

The situation is a lot worse today. India has now been ranked among the worst and awarded lowest scores for copyrights, patents and other intellectual property by the US Chamber of Commerce. Currently, there is a lack of stringent policies and the government perhaps is overlooking the connection between software exports and Indian software products. 

India is losing out on the competitive edge because of this situation. A lot can be done to develop an ecosystem in providing strong Indian software products and intellectual property protection. This will not only fortify the Indian software industry but will also create more patents, Trade Mark, Intellectual property and copyrights and increase tax revenues".



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Normal life hit in Kerala; mixed response in Karna, TN

Written By Unknown on Rabu, 20 Februari 2013 | 18.00

Chennai, Feb 20 (PTI) The nationwide strike called by 11 trade unions today threw normal life out of gear in Left dominated Kerala, but had no major impact in Karnataka and Tamil Nadu. In Kerala, transport and banking services were hit hard as the strike began against the UPA Government's economic and labour policies. Buses and taxis were off the roads and shops and hotels remained closed. Train services were not affected. The Congress-led UDF government has declared 'dies non' (no work, no pay) as pro-Left groups and teachers unions also struck work. No violence was reported, police said. In Karnataka, stones were pelted at some buses and roads blocked in Bellary while normal life was hit in Koppal, with buses, autorickshaws and other transport off the roads. In the country's IT captial of Bangalore, shops downed shutters and educational institutes were closed. Autos were off roads. Services at various hospitals in the city, where 17,000 policemen were on security duty, were not hit, as also in IT companies, many of whose employees worked from home. The strike impact in Tamil Nadu was partial. In Chennai, most shops remained open and transport services operated normal services. Auto-rickshaws plied as usual. Partial inter-city services were operated from Chennai Mofussil Bus Terminus, sources said. However, banking services were hit hard as most public and private sector banks remained closed. A Madurai report said normal life was not affected in south Tamil Nadu, with shops and hotels remaining open and buses operating normal services and autocrickshaws plying as usual. All central government offices functioned with a handful of officials, it said. PTI NM BDN VIJ SSN APR RA DV
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Reliance Industries may test Rs 825 in 2-3 weeks: Kulkarni

Shardul Kulkarni of Angel Broking is of the view that, Reliance Industries is expected to test Rs 835 mark in the next two to three weeks.

Kulkarni told CNBC-TV18, "The move which is seen in Reliance Industries in today's trading session should actually be used to book profits and move out. The stock continues to move in a lower top-lower bottom cycle over the past 20-25 days and I think we have seen a strong bounce from the lower levels, however I think that it is best to move out, because stock has already hit the upper end of the channel pattern which it has been showing over the past month-month and a half. So I think it is best to book profits and move out. I expect Reliance to retest Rs 835 mark probably over the next two to three weeks."



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Domestic steel makers pitch for hiking duty on steel import

Domestic steel manufacturers want government to hike duty on its imports to rein in dumping of the alloy into the country.

"In order to protect interests of the domestic industry, Budget needs to revisit last year's hike in excise duty and take steps to discourage dumping of products," Tata Steel's Managing Director H M Nerurkar said in his Budget wish-list.

The government had in the Budget for the current fiscal enhanced basic customs duty on non-alloy, flat-rolled steel from five per cent earlier to 7.5 per cent. It also hiked the excise duty at the same time.

Nerurkar said the duty hike on steel imports is needed as the volume of shipments has increased by a whopping 40 per cent in the first six months of the ongoing fiscal.

"In line with the government's policy of reducing import duty for raw materials for making steel, import duty on steel grade limestone, dolomite (which is presently five per cent) and iron ore (which is currently 2.5 per cent) should also be reduced to zero," he added.

Also read: 5% SAIL buyback likely in March, board to meet on Feb 25

Jindal Steel and Power's MD & CEO Ravi Uppal asked the government to take steps for discouraging dumping into India as this would destroy the potential of the domestic steel industry.

"No dumping should be allowed in steel in India. The main challenge is China. They produce 750 million tonnes of steel and can easily dump it in India. If that happens, then the baby (Indian steel industry) will die in its cradle," he said.

Dumping in international trade means export by a country of a product at a price that is lower in the foreign market than the price charged in the domestic market.

"The domestic steel capacity has to be protected and we project that from under 100 million tonnes per annum (mtpa), it will rise to 130 MTPA by 2018. This will make India the second largest steel maker in the world from its current fourth position," Uppal added.

Uppal said there is a need to stimulate the demand as it has slowed down due to less infrastructure spend.

"Even future capacity expansion has been affected due to slowdown in mining activities in states like Karnataka, Goa and parts of Odisha," he said.

Both of them also urged the government to clear hurdles like delay in project approvals and environment clearances to enable the domestic steel sector to grow.

"The Indian steel industry is facing problems due to shortage of iron ore and continued delays in project approvals. The industry will benefit from proactive actions on these fronts in the Union Budget," Nerurkar said.



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RIL may enter voice mkt; telecom needs consolidation: Kotak

Rohit Chordia, senior analyst -- telecom & IT, Kotak Institutional Equities, says that Reliance Industries Limited (RIL) may enter the voice market on back of limited success that Bharti Airtel saw with its 4G rollouts in few cities.  

Talking specifically on the sector, he said that the industry needs consolidation and we may not see any friendly M&A activity in the sector at this point. He does not see much demand for 1800 MHz spectrum, and a possible auction failure on cards for different reasons like price and non-availability of spectrum in parts of the circle like Delhi, Bombay, Karnataka and Rajasthan.

Also read: Offer voice after paying Rs 1,650cr: Telecom panel on 4G

Below is the edited transcript of his interview to CNBC-TV18.

Q: As a broking house are you pushing telecom stocks as one of your favourite sectors? Do you feel that the worst is over for the sector?

A: We have been and remain positive on Bharti Airtel and Idea Cellular. Strategically, we have a neutral weight on the telecom sector but concerns are still present for the sector.

Q: What is your view on the possibility of RIL entering into the voice segment post what the Telecom Commission and the Department of Telecom (DOT) had to say about paying Rs 1,658 crore and 4G license holders can enter into the voice segment. How disruptive could it be and do you see the possibility of RIL entering into the telecom space?

A: There are two questions here, whether RIL will enter the voice market and second how disruptive can they be? Given the data off take we have seen in the last two or three years, since 3G networks was rolled out, and the limited success that Bharti has seen with its 4G rollouts in few cities, I think it is logical to assume that RIL will look at the voice market. Time will only tell if RIL will be disruptive or not. If they want to make a big mark in the voice segment which is dominated by the GSM operators, the incumbents then will probably have no choice but to be disruptive, how disruptive we will wait and see.

Q: What is the sense you are getting in terms of the entry of this big giant into the voice space? Does that happen in 2013 or will there be a painful litigation ahead of it? After all you will have to price in that competitor if you are forecasting FY14 year-end numbers?

A: From a long-term perspective, Indian market will not be ever large enough for seven or eight operators. Indian market will be large enough for 4-5 operators at best, who will be those five operators.

If we include RIL in the list and then start eliminating then we need to see if Reliance could be the fourth or fifth operator or maybe among those four or five operators. Long way is still ahead of them. They are just entering the market and many questions pertaining to organic or inorganic route and others still needs to be answered.    

Q: So do you see an M&A ridden telecom industry in FY14?

A: M&A should have happened by now. This industry needs consolidation. As I said, this is not an industry large enough for seven or eight operators to exist peacefully. Some of them will have challenges. M&A has not happened due to some regulatory issues, some pure economics and we need to see how this industry evolves into that sustainable four to five player industry. We may not see any friendly M&A activity in the sector this point.

Q: All eyes are on auction which is scheduled on March 11. What is your view? The GSM base prices have been sliced by 30 percent and CDMA by 50 percent, do you think it will be successful and who would be the bidders?

A: Let us look at the three auctions separately. Sistema Shyam is the only player in 800 MHz space to watch out for. I think they will like to remain in India but bid for circles where they have a reasonable and good market share, especially on data dongle side.

I do not see much demand for 1800 MHz spectrum, and a possible failure on cards for different reasons like price and non-availability of spectrum in parts of the circle like Delhi, Bombay, Karnataka and Rajasthan. So, we need to look at the November auctions in this context. Operators who wanted to stay in the market only bid for the spectrum.

Vodafone was an exception, but they bought top-up spectrum in a few circles. Vodafone's participation in Maharashtra circle was a real surprise. In the upcoming auction there is no such operator who needs to participate. I am watching 900 MHz space very closely here the entire re-farming renewal angle comes into play.

Q: Does it get postponed with the court saying that the entire spectrum coming to the government because of cancelled licenses should be put on the block? Will re-farming get postponed because of that?

A: Government needs around 1800 MHz if they are looking for re-farming. I think it makes sense only for the current holders of the 900 MHz to buy 900 MHz at government suggested prices. So technically to that extent re-farming does not happen. I have read that government is already thinking of a third auction where they will put the balance out on the 1800 MHz side. We need to wait and see if this will impact the March auction or not.    

Q: From your earlier response it can be inferred that it will not be an enthusiastic response. Should one expect that there will be subsequent rounds with lower reserve prices?

A: That is what the industry would like. A little bit of to and fro is happening between the government and the industry. Unfortunately, we have started with a high reserve price. The industry would have liked to participate in auctions with a lower reserve price and if the fair value of the spectrum is what the government is suggesting it the auctions would have taken it there. This entire process started off in a manner which has not made it easy for the operators either. 

Q: The expectation of tariffs hike is the reason for telecom stock prices doing well and currently it has been by way of reducing minutes and discounting. Has that trend been as per what the analysts were expecting?

A: I think it is a start. Operators understand that they need to do it in a calibrated manner. The government has played its card. They want more money for the spectrum. They believe spectrum value is higher than what the operators have paid historically which is a fair point. The government has played its card.

Operators on their part need to find this money and need to find this money from the customers. The third piece of the puzzle which is the customers, we do not know their reaction. So operators will be careful in risking elasticity. Hence, I think that if it will happen, that is a need of the hour for the sector, for the challengers and incumbents alike, but the operators would like to do it in a calibrated manner.



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GEPL Fund analysis: Reliance Tax Saver Fund

Written By Unknown on Selasa, 19 Februari 2013 | 18.00

GEPL reviews Reliance Tax Saver (ELSS) Fund , an open ended equity scheme.

The primary objective of the scheme is to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. Launched in September 2005, this fund has large portion of its asset invested in Automobile sector.



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Jet Airways keen to make management position for Etihad

Jet Airways has agreed to create management positions for Abu Dhabi-based airways Etihad. Till yesterday, both sides were keen that this deal goes through, but that sticky right of first refusal (RoFR) clause needed to be dealt with, CNBC-TV18's Kritika Saxena quotes sources.
 
Jet Airways is so far not willing to give RoFR clause to Etihad . However, Jet Airways is willing to create management position for it. The positions like chief executive officer (CEO) and chief financial officer (CFO) will remain with Jet Airways. One could probably see special position being created for Etihad, like chief operating officer (COO), chief strategy officer (CSO), etc.

From the discussions and the negotiations that have happened in the last 24 hours the two companies are looking at creating a joint team. This will device a joint go to market and joint strategy for the company.

In the first phase the joint team will be taking care of issues such as asset and fleet integration. In the second phase the more important balance sheet restructuring will be looked into.

Sources say, currently the restructuring of Tail Winds Limited is underway. Jet Airways will be putting shareholding of the India arm in place, in order to shift the shares of the Mauritius arm in the India subsidiary. Around 95 percent shares will be held by Naresh Goyal and remaining by other investors that currently hold stake in Tail Winds Mauritius.

The deal, pretty much has been done, but the issues remain the same. Management issue has been taken care of. Jet Airways is unwilling to give four board seats and willing to go with just three. So, negotiations are on and one needs to wait and watch to see, if the deal will be cracked before Budget as that is something the ministry and Jet Airways have been pushing for.



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Expect Africa biz revenue at $4.5 bn: Bharti Ent

Tue, Feb 19, 2013 at 16:11

Even though Bharti Enterprises has not achieved initial revenue targets in Africa, Akhil Gupta, Dy Group CEO & MD is optimistic that the company will soon capture the growing market there.

Like this story, share it with millions of investors on M3

Expect Africa biz revenue at $4.5 bn: Bharti Ent

Even though Bharti Enterprises has not achieved initial revenue targets in Africa, Akhil Gupta, Dy Group CEO & MD is optimistic that the company will soon capture the growing market there.

Like this story, share it with millions of investors on M3

Expect Africa biz revenue at $4.5 bn: Bharti Ent

Even though Bharti Enterprises has not achieved initial revenue targets in Africa, Akhil Gupta, Dy Group CEO & MD is optimistic that the company will soon capture the growing market there.

Share  .  Email  .  Print  .  A+A-

We have been against competition which is irrational, but competition per se is never an issue with us.

Akhil Gupta

Dy Group CEO & MD

Bharti Enterprises


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Fund of funds: All you wanted to know

Hemant Rustagi, Wiseinvest Advisors discusses the pros and cons of investing in fund of funds.

In an interview to CNBC-TV18 he said, there are three types of fund of funds that are available to investors in India.

First, there are fund of funds that invest into schemes of the same mutual funds. Second, there are fund of funds that invest into schemes of other mutual funds. Third, there are fund of funds that allow investors to invest in international funds thereby allowing them to diversify their portfolio internationally. There are lot these fund of funds can offer to the investors, he added.

Below is the verbatim transcript of his interview on CNBC-TV18

Q: In theory, a fund of funds has very obvious benefits; it takes the wisdom of several fund managers. Is that really the case in terms of actual performance? Why haven't they managed to pick up in India as a concept itself?

A: One of the major advantages of investing in mutual fund is that they offer a variety of funds. However considering the fact there are hundreds of funds to choose from, it can be quite a daunting task for investors to make the right selection. In that context if you really see fund of funds can be a pretty good option as it not only allows investors to invest in funds that invest in different asset classes, following different investment philosophies, but also they can do so by investing much lower amount than if they were to invest in these funds separately.

The funds that invest in more than one asset class have a pre-decided asset allocation, which means that they maintain it at all times. The major advantage for investor here is that they do not have to worry about rebalancing their asset allocation every now and then.

Currently, there are three types of fund of funds that are available to investors in India. First, there are fund of funds that invest into schemes of the same mutual fund. In this category there are gold saving funds that allow investors to invest in gold ETF without having to open a demat account, which are the most prominent ones. The advantage of investing in this fund of funds is that investors can invest through Systematic Investment Plan (SIP) which they cannot do in gold ETF.

Second, there are fund of funds that invest into schemes of other mutual funds. Presently there are only one or two mutual funds that offer this kind of fund.

Third, there are fund of funds that allow investors to invest in international funds thereby allowing them to diversify their portfolio internationally. In this category, there are country specific funds, region specific funds and also thematic funds that invest in different commodities like you have gold funds, natural resources fund and also the fund that invests in emerging market. So there is lot that this fund of funds can offer to the investor.

Unfortunately, despite the fact that fund of funds are quite popular globally, they have failed to make an impact in India and I believe there are few reasons for that. First, most of the funds in India, especially the domestic ones that invest in different asset classes, invest in the schemes of their own mutual funds, which mean that investors have to rely on the expertise of the fund managers of the same fund house and that restricts the options for them.

Second, any investor in a fund of funds has to bear expenses of the fund of funds and also the underlying fund. The common perception is that these are more expensive funds. However, the fact remains here that Securities and Exchange Board of India (Sebi) has capped expenses at 2.5 percent and there are a number of funds that are charging much less than this cap.

Third, the major drawback for fund of funds is that their tax treatment. Even if a fund has more than 65 percent exposure to equity, which is the basis of considering an equity fund for tax purposes, this fund of funds is still considered as a debt fund. This means that the fund has to pay dividend distribution tax, investors have to pay long-term capital gain at 10 percent and then short-term capital at a nominal tax rate.

Q: What have been the annual returns or three year returns of these funds vis-à-vis the best in class equity and best in class debt and therefore are you telling our investors to invest or not invest in fund of funds?

A: The only major problem is the tax treatment. I think the time has come to realize that they have to be treated on par with other balanced funds. If that happens, I see a major change and I see a lot of investors then preferring to invest in them because they are a very simple way to invest in different funds through a single investment.

Caller Q: I earn around Rs 7,000 per month. How should I allocate my funds? How much should I put in each mutual fund? Also can you suggest good fund of funds investment options?

A: I think it is good to see someone who is at the beginning of his career and looking at starting the process of investment and that too considering mutual funds to invest in. There are few things that he really needs to focus on before he starts investing.

One, he needs to do a proper budgeting and that will decide as to how much money he can invest every month, because he definitely needs to avoid a situation where he starts investing any amount and then stop the process midway through.

Second, he needs to be very, very clear in terms of his time horizon, because that decides as to how much money has to go into equity or debt. So, he really needs to focus on these two points.

My advice to him would be that if his time horizon is one year or thereabouts, considering that his total income will not attract any income tax he should be looking at bank deposit or recurring deposit rather than looking for mutual funds.

However, if he can invest for longer period, maybe five years or more than depending on the kind of risk he wants to take, he can either consider debt-oriented hybrid funds like monthly income plans. There one or two funds like HDFC MIP Long-Term, or Reliance MIP or he can look at equity oriented balance fund where he can look at HDFC Prudence.

These are two-three factors that he needs to look at and then decide where he should be investing his money.



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MCX GOLDGUINEA March contract trades flat

Written By Unknown on Senin, 18 Februari 2013 | 18.00

GOLDGUINEA prices on MCX were trading flat. At 15:54 hrs MCX GOLDGUINEA February contract was trading at Rs 23920 up Rs 15, or 0.06%. The GOLDGUINEA rate touched an intraday high of Rs 23960 and an intraday low of Rs 23905. So far 2734 contracts have been traded. GOLDGUINEA prices have moved down Rs 2058, or 7.92% in the February series so far.

At 15:53 hrs MCX GOLDGUINEA March contract was trading at Rs 24196 up Rs 11, or 0.05%. The GOLDGUINEA rate touched an intraday high of Rs 24243 and an intraday low of Rs 24183. So far 1361 contracts have been traded. GOLDGUINEA prices have moved down Rs 894, or 3.56% in the March series so far.

At 15:52 hrs MCX GOLDGUINEA April contract was trading at Rs 24431 up Rs 1, or 0.00%. The GOLDGUINEA rate touched an intraday high of Rs 24500 and an intraday low of Rs 24431. So far 394 contracts have been traded. GOLDGUINEA prices have moved down Rs 108, or 0.44% in the April series so far.



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Buy Jet Airways for short term, says Baliga

Buy Jet Airways for short term, says Ambareesh Baliga, Market Expert.

Baliga told CNBC-TV18, "In Jet Airways there is a short terms buying opportunity, because the deal has been postponed not cancelled. Just like the way we use to have that flip-flop in the United Distilleries acquisition, something similar is happening out here and because of this flip-flop you will get buying opportunity for traders."

He further added, "But from investors angle I would say whenever you see levels of closer to Rs 620-630 it is a selling opportunity because this is not going to be beneficial for the existing shareholders, there will be no open offer because the acquisition is less than 25 percent. I really don't see the stock shooting too much beyond that Rs 620-640 levels. So, closer to those levels one should be looking at exiting."



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British Royal Mint makes first gold sovereigns in India in century

LONDON (Reuters) - Britain's Royal Mint has started to manufacture gold sovereign coins in India for the first time in almost 100 years, it said on Monday.

Indian residents have been unable to buy commemorative sovereigns since 1918, when the Royal Mint operated a branch in the country, producing 1.3 million coins in a single year.

The first production run will be for 50,000 pieces and will be available in the market immediately, the Royal Mint said in a statement that coincided with British Prime Minister David Cameron's visit to India.

The commemorative sovereigns will be produced by Indian gold producer MMTC-PAMP using tools and techniques developed by the Royal Mint in its South Wales facility.

India is the largest consumer of gold, with gold coins playing a key role in wedding ceremonies and festival celebrations throughout the year.

The country's gold medal market is estimated at around 80 tonnes a year by consultancy Thomson Reuters GFMS.

(Reporting by Clara Denina; Editing by Anthony Barker)



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Budget 2013 Indirect Transfers: Taxing Times To Continue?



Show Timings:

Friday: 10.30 pm, Saturday: 11.30 am

& Sunday: 11.00 pm

Published on Mon, Feb 18,2013 | 16:22, Updated at Mon, Feb 18 at 16:22Source : Moneycontrol.com 

By: Sudhir Nayak, Partner, Sudit Parekh & Co.

Past experience shows that once in a decade or two, we witness a historical tax ruling from the Supreme Court which evokes sharply divided responses amongst various stakeholders in the tax community. The Supreme Court ruling in the case of Vodafone Holdings BV is one such landmark ruling. The Supreme Court judges were lauded by taxpayers across the globe for rendering a well reasoned ruling propagating a stable tax regime. However, the hard earned victory earned by Vodafone was short lived as last year, the Indian Legislature wielded its authority to virtually nullify the ruling and bring income arising from transfer of shares of foreign companies within the ambit of Indian taxation in certain cases.  The same is popularly denoted as 'taxability of indirect transfers'.     

This amendment created a huge furor in the global investor community and threatened to adversely impact India's status as a preferred investment jurisdiction amongst the developing countries.  The main concerns of the investor community were (i) the fear that the retrospective amendments dating back to 50 years or more would create tax uncertainty over Indian investments; (ii) the seeming desire of Legislature to negate tax jurisprudence; and (iii) ambiguous tax provisions. 

This amendment coupled with introduction of General Anti Avoidance Rule ('GAAR') provisions resulted in capital outflows from the country on account of weak investor sentiments who sought other stable tax jurisdictions. 

The concept of taxability of indirect transfers in India has been the subject matter of debate in India for close to four years now with the tax authorities seeking to pierce the legal forms of transactions to evaluate substance therein.  With a view to introduce these provisions in the tax laws itself, the Legislature 'provided certain clarifications' within section 9 of the Act to tax 'indirect transfers'.  The mode of computing the gains on such indirect transfers and manner of taxability of the same was so ambiguous and complicatedly worded that the uncertainty revolving around these provisions only stood enhanced. 

With a view to pacify investor sentiments and foster investor confidence, the Indian Government subsequently constituted a committee ('Shome Committee') to look into the GAAR provisions as well as the indirect transfer provisions. The report of the Shome Committee suggested rationalization of the GAAR provisions and suggested a form of provisions which may be more acceptable to the global investor community since it breathes of equitability and stability.  The positive manner in which the recommendations of the Shome Committee have been viewed by the Indian Government (and the new Finance Minister in particular) and the subsequent deferral of GAAR provisions has been well received globally. 

The positive sounding statements of the Indian Finance Minister on global forums in the past few weeks and the assertion that India is a stable jurisdiction awaken a hope that the recommendations of the Shome Committee in the context of indirect transfers would also be viewed favourably by the Government.


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