Aban Offshore may test Rs 245, says Pritesh Mehta

Pritesh Mehta of IIFL told CNBC-TV18, " Aban Offshore had a sharp correction, thereafter it bottomed out. Bottoming out generally is a process where stocks tend to wander around doing nothing much. The stock did move in a range of Rs 219-230 for quite a while and thereafter it is showing a sign of fresh up move."

"It has given a breakout above Rs 232 in today's trade. We expect the momentum to continue on the upside and we can see levels of Rs 245 may be in next couple of trading sessions. It is just a short term trading idea," he said.

Disclosure: Analyst might has recommended this stock to his clients but no personal holdings.

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What is mutual fund?

Q. What is Mutual Fund?

A: Mutual Fund is an investment vehicle which helps one invests in different asset classes. It could be equity, gold or debt.

If I were to go from here to Pune, I have two options - One is I can drive on my own or I can take a public transport. If I drive on my own, I decide the starting point, I decide the ending point, where I want to stop but I have to put in efforts and I have to own that vehicle.

If I take a public transport, I have to go to a railway station or an airport. There are pre-determine route, there are pre-determine stoppages. Mutual Fund is something like that – where it is pre-determined way in which asset class it will invest – how much quantum will it invest? You have an ease in the sense that it is a collective investment vehicle so there are people traveling with you and hence the cost comes down. At the same time one does not have option of deciding what to invest in, what quantity and when. So, it is like taking a public transport for an investment.

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Why FMPs score over bank fixed deposits?

Q. Why FMPs score over bank FDs?

A: We are all familiar with what bank FD is, because all of us have invested in FDs in some point or the other. Fixed Maturity Plans (FMP) are mutual fund product and they are akin to a fixed deposit, that is because they are closed-ended scheme by nature, they have a fixed duration. It could be 1 month, 3 months, 6 months, 12 months, 24 months, 36 months or even 60 months. So these are essentially closed-ended fund.

Why they score over FD is because they are mutual fund product and mutual fund as investment vehicle is more tax efficient. Let us understand that with an example. If you are in 30 percent tax bracket and you get Rs 10,000 interest which is 10 percent on Rs 1 lakh you end up paying 30 percent tax. So your post-tax return is Rs 7,000 from a fixed deposit.

If you get the same amount from a FMP assuming that the rate of return is same you would get Rs 10,000 and because it is redeemed after one year it becomes a long-term capital gain, which means that your capital gains are taxed at the rate of 10 percent, you end up paying a flat rate tax of Rs 1,000. Your post-tax returns are gong to be Rs 9,000 which is much higher than what we have got from FD.

In higher inflation rate scenario go for indexation which means that if the inflation is 7 percent, your net return is 3 percent you pay 20 percent tax on that which is 0.6 percent, so your post tax return again is going to be 9.4. So as you can see that because of the tax efficiency FMPs score over FDs and also remember FMPs in a higher interest rate scenario have the potential to give you much higher return than what a bank can give you.

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Steps to remember while investing for your children

Q. How to secure your child's future through mutual funds?

A: All of us know that securing our children's future is a very, very important goal for every parent. The issue is how do you ensure that you are securing financial future of your children. As it happens with everything else in life there has to be certain amount of discipline and do not forget a goal like securing child future is generally a long-term goal and it is also a goal which requires you to build a large corpus. What are we talking about? We are talking about child education and marriage. These are big costs for you in your life.

First thing that you need to do is ascertain a time horizon. I would say go one step further, try and start the investment process as soon as the child is born. If it is not possible to do that at least begin in couple of years so that you will have enough time to build the kind of corpus that you want to build. So, first thing is start investing early.

Second thing is fix a time horizon. Whether you will be required this money after 16 years of 17 years and also do not forget even after that you will have another 3-4 years, because you are not going to need all this money in one go, you will actually need it gradually. So fix a time horizon. Fix a target. For that what you need to do is you need to decide and see what kind of education would you like to give it to your child and what is that education costing today, then work out inflation on that and then workout your target and then work backwards and then workout how much money you need to invest on a monthly basis or whatever your time period maybe.

Another important point that you need to factor then is what investment option should you be looking at? There are dedicated child funds which are essentially hybrid kind of funds offered also by mutual funds as well as insurance companies, but my belief is that if you are an active investor, mutual funds have a number of options for you. For example, if you have 18 years to go before you need the money for your child's education why do not you look at investing through Systematic Investment Plan (SIP) in equity funds?

Once you complete a period of 15-16 years gradually start changing the asset allocation, bring in more debt so that you can make sure that all the gains that you have made over a period of time are protected. If you follow this process whatever the target maybe you can achieve, but remember continue investment process irrespective of the market condition. Do not lose focus on your goal.

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What is difference between bond and share?

Q: What is the difference between buying a bond and buying a share?

A: You buy share for capital appreciation, you buy share for growth, you buy share to create wealth. You buy bond to protect your wealth you have created so, in a way it is different but interestingly like equity have a PE multiple, bond also have PE multiple. Therefore, it could be good guide to you to look at when you should invest in the bond fund, for instance if a bond have a 10 PE multiple then it means the current yield is 10 percent and if a bond have a 12.5 PE multiple then it means the bond is offering 8 percent. So, you can use that as a tool to invest in the bond or not to invest in a bond.

Second thing share market plays a very important role when one look at investing in the bond because many time people invest in the bond or deposits of the company which are unknown and once they invest they do not know what happen to their portfolio, what has happened to the company but if you invest in the company which is listed on a stock exchange, the price of the share will tell you many things which perhaps is the financial of the company may not be able to tell you. So, in a way they are not connected but in a way they are connected.

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How important are bonds in a portfolio?

Q: The bond funds are an integral part of almost anyone's investment portfolio particularly mutual fund portfolio. What do bonds do to your portfolio in terms of stability risk rewards etc?

A: Bond is a kind of product which is different from any other asset category, for instance investment in a real estate or in gold or in the share market. When the price goes down of any of these products, you never know when the price is going to come back. The beauty of the bond product is suppose you are holding a bond and if the price of the bond fall, it mean from tomorrow the yield will start going up. So, suppose you are holding a 10-year bond of 8 percent and tomorrow interest rate goes up to 9 percent, so immediately you will see depreciation in net asset value ( NAV ) but from that day onward yield instead of 8 percent it will start from 9 percent. So, in a bond if you hold till maturity then there is no way you are going to lose capital if you are invested in a good quality bond. So, when you look at investing in bond and I am not restricting myself to the bond but the whole fixed income space one need to invest.

Many people go on lend money to their friends and in the businesses extremely risky. People invest in company deposits - extremely risky. When people look at investing in the bond, I think what happens in bond that it has a coupon which keeps coming to you on regular basis. So, in a way it is a very good tool for customer to invest and it give a protection to the customer's portfolio, it provides regularity of income and in a way it is a very essential part of any customer's portfolio.

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How do investors benchmark their bond funds?

Q: What do you benchmark your bond against? How do you know that this is a good bond fund performing efficiently?

A: There are two way to look at it. One is that when you invest in a bond fund the worst thing you should do is to look at historical return because these return already come in and they is no guarantee that this fund will deliver similar kind of return. Unlike equity, in a bond you need to look at simple thing that what is the current portfolio maturity and what is the current portfolio yield and if you invest in that product and have that kind of maturity yield and if you stay invested in that fund for that period then yield minus expenses you are going to get it.

If you look at liquid right now, liquid fund have a 60 days maturity, current portfolio yield is 10 percent plus, 25 bps expenses, you are going to get 9.75 to 10 percent for next 60 days. Similarly if you look at accrual products, which are one year plus kind of products where current yield is anything between 11 to 11.5 and 12 percent. You take 1.5 percent expenses, 10 percent plus kind of return you get, suppose you stay invested for one year period, so that is a way one need to look at.

Technically I can answer you that it has to be benchmark against the bond index and all that which for a normal investor doesn't matter. I think the real benchmark for a bond is to look at company FDs. If you have one year company FD, if you have three year company FD and you have product which is one year maturity or three year maturity then that product yield to maturity (YTM) has to be higher than the bank deposit.

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Tax-free bonds: Is it a good bet?

Q: Explain all these spotlights that are there on the tax-free bonds. How much does that add to the reward that I get at the end of the tenure for which I am investing?

A: I am not a big believer of tax-free bond for simple reason that if you are a high net worth individual and you invest in mutual fund and you disinvest after one year, you just pay 10 percent long-term capital gain but when you invest in a tax-free bond, government take a calculation saying that all investors are in highest bracket. So, he starts from day one paying highest tax slab.

It is a tax-free bond, nice but in a ten year period you find many times capital losses in your books. So, if you have a mutual fund bond portfolio and you have a capital losses somewhere else then you can adjust these things which is not possible in tax-free bond, for instance if you are running a business; you have a business of investing and that you have some losses where many people keep having for various reasons. Now you have a taxable instrument like mutual fund or lower instrument like mutual fund, you can adjust those. So, I am not a big believer in tax-free bond and I do not think they serve much purpose to the investor but the lure of them is too high for many investors to avoid.

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Musharraf's custody extended till Oct 30 in Lal Masjid case

A Pakistani court has extended the custody of former president General Pervez Musharraf till October 30 in the Lal Masjid case and ruled that the next hearing would be held at his Chak Shahzad farmhouse, which has been turned into a sub-jail.

"The judicial magistrate has extended his custody till October 30. He has also said that the next hearing of the case on November 8 would be held at his Chak Shahzad farmhouse which has already been converted into a sub-jail," one of Musharraf's lawyer Ilyas Siddiqui told PTI.

His custody was extended yesterday during a hearing at the Magistrate's Court here. Musharraf was not produced before the Court due to security concerns. His party said Musharraf would remain in Pakistan and fight all cases against him even if he gets bail. However, many say he could flee the country. The Interior Ministry had recently confirmed that he was on the Exit Control List, meaning which he cannot fly out without permission by the Court.

Exit Control List has names of people who cannot cross the borders of the country without prior permission. Musharraf has been under arrest for nearly six months at his farmhouse, guarded by nearly 300 security personnel, including soldiers and snipers. He was granted bail in three major cases against him, including the assassination of former prime minister Benazir Bhutto, the murder of Nawab Akbar Bugti and the Judges' detention case.

Later, after submission of surety bonds in the Supreme Court, when he was closer to possible release from nearly six months of house arrest, Islamabad police had arrested him in another case of Abdul Rasheed Ghazi's murder, commonly known as the Lal Masjid case. Musharraf, who was then army chief and President, had ordered the crackdown on extremists holed up in the Lal Masjid in 2007. About 100 people, most of them extremists, were killed in the operation.

On the orders of the Islamabad High Court, a case was registered against Musharraf on September 2, charging him with the murder of Abdul Rashid and his mother. The case was filed after the cleric's son submitted an application to police and referred to the Lal Masjid Commission's report, which held the former President responsible for the operation.

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Ban encourages Indo-Pak dialogue to resolve LoC tensions

UN chief Ban Ki-moon has encouraged India and Pakistan to resolve the escalating tensions along the Line of Control (LoC) through dialogue and in a "peaceful" manner. 

Ceasefire violations along the LoC have continued in the days following Prime Minister Manmohan Singh's meeting with his Pakistani counterpart Nawaz Sharif on the sidelines of the UN General Assembly last month. Pakistani troops had opened fire and shelled several border outposts along the International Border in Jammu and Samba this week.

Ban's spokesperson Martin Nesirky said the UN Chief is aware of the reports of tension along the LoC and would encourage the two nations to resolve their disputes through dialogue, on the lines of talks initiated during the bilateral meeting of the Prime Ministers. "The discussions that did take place (between India and Pakistan) on the margins of the General Assembly meetings last month were important, and it is precisely that kind of dialogue which the Secretary-General would wish to encourage.

"We are obviously aware of these reports (LoC tension and ceasefire violations) over the past few days, and obviously not just the past few days. This needs to be dealt with by the two parties in a peaceful manner," Nesirky said in his press
briefing yesterday. Singh had told reporters accompanying him on his two-nation tour to Russia and China this month that he is "disappointed" with Sharif and asked him "even at this late hour" to recognise that what was happening on the LoC and International Border is not good for the two nations.

Singh has said that during his meeting with Sharif, there was a "general agreement" on both the sides that peace and tranquillity should be maintained on the border, LoC and the international border which he said has not happened.

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Healthy Sept quarter results: 6 large cap stocks you can buy now

This week, the Nifty fell 44.45 points to 6189.35 and the Sensex lost 199.37 points to 20882.89, thus remaining 168 points and 323 points away from their respective record highs. Besides hitting the 21000-mark intraday for the first time since November 2010, the Sensex did nothing extraordinary and moved in the 20700-20900 band throughout the week; its NSE counterpart gyrated in the 6100-6200 range.

September quarter earnings were largely higher than analysts' expectations. While, stellar performance by ICICI Bank was the most-talked about result this week. Wipro remained a laggard in terms of dollar revenue growth
ITC's sales volume growth in Q2 let down the street as well.

So, which stocks to buy now post September quarter results. Here are 6 large caps that you can buy now.

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US lawmakers to organise first-ever Diwali reception

The first-ever Diwali celebrations will be held at the US Capitol this year, with the US lawmakers announcing to hold a Congressional reception for the festival of lights.

Cutting across party lines, a number of Senators and members of US House of Representatives are expected to attend the "first-ever Congressional Diwali" reception, lawmakers said yesterday.

"Diwali is a festival of great significance to millions of Indians and Indian-Americans and I'm thrilled and proud to be a part of the first-ever Congressional Diwali," Congressman Joe Crowley, co-chair of the Congressional Caucus on India and Indian Americans, told PTI.

Also read: Carry trade back in fashion as easy money prevails

"I'm looking forward to this bipartisan event that will bring together members of Congress, prominent Indian-American leaders, and the community to celebrate Diwali," he said. "This isn't only about celebration though - this event is also about helping to build a greater understanding of differing cultural backgrounds and histories not only for Indian Americans but for all Americans.

I'm looking forward to what should be the first of many Diwali celebrations on Capitol Hill in the years ahead. This event is truly making history!" Crowley said. Congresswoman Tulsi Gabbard, who is the first Hindu to be elected to the US Congress said, "Our historic, first-ever Congressional Diwali reception will serve to increase awareness about Diwali and highlight its positive, peaceful message during these contentious times".

"Diwali is a time to light a welcoming lamp within our hearts, to invite the Lord into our life. This message has great relevance at a time when politics and partisanship seem to overshadow compassion and concern for the greater good," Gabbard said.

Indian Americans have welcomed the move by lawmakers. "This is a historic occasion," said Dr Sambu Banik, an eminent Indian American from the Greater Washington Area.

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Buy TVS Motor: Shahina Mukadam

Oct 25, 2013, 03.24 PM IST

Shahina Mukadam of Fairwealth Securities advises buying TVS Motor Company with medium to long term view.

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Buy TVS Motor: Shahina Mukadam

Shahina Mukadam of Fairwealth Securities advises buying TVS Motor Company with medium to long term view.

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

Buy TVS Motor: Shahina Mukadam

Shahina Mukadam of Fairwealth Securities advises buying TVS Motor Company with medium to long term view.

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Shahina Mukadam of Fairwealth Securities told CNBC-TV18, " TVS Motor 's numbers were good. They have shown good growth. In terms of volumes also it is better than what I had expected and I do think that given the price increase that they have again taken they would be able to further improve their margins. So, I would really get into that stock for a medium to longer term."

At 15:22 hrs TVS Motor Company was quoting at Rs 50.85, up Rs 1.10, or 2.21 percent.

The share touched its 52-week high Rs 52.50 and 52-week low Rs 28.10 on 23 October, 2013 and 31 July, 2013, respectively.

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Exit ACC, says Shahina Mukadam

Oct 25, 2013, 03.30 PM IST

Shahina Mukadam of Fairwealth Securities is of the view that one may exit from ACC and shift to the other sector as cement space is not going to improve substantially over the next three-six months.

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Exit ACC, says Shahina Mukadam

Shahina Mukadam of Fairwealth Securities is of the view that one may exit from ACC and shift to the other sector as cement space is not going to improve substantially over the next three-six months.

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

Exit ACC, says Shahina Mukadam

Shahina Mukadam of Fairwealth Securities is of the view that one may exit from ACC and shift to the other sector as cement space is not going to improve substantially over the next three-six months.

  .   Share  .  Email  .  Print  .  A+A-

Shahina Mukadam of Fairwealth Securities told CNBC-TV18, " ACC is a pretty low beta stock and I don't think the cement market is going to really improve substantially over the next three-six months. The maximum that one can get in a year would be around Rs 1300 so it is a 10 percent plus or minus from these levels."

"One should book out from this stock may be shift to some other sector which is likely to do better in the next three-six months," she added.

At 15:26 hrs ACC was quoting at Rs 1,136.95, down Rs 15.35, or 1.33 percent.

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Overall absorption falls 15% in Q1-Q3: Cushman Wakefield

Cushman & Wakefield

Office markets in India registered a downward trend in overall net absorption for the first three quarters of 2013, as per the latest report released by global real estate consultants, Cushman & Wakefield. The overall net absorption across top eight cities in 2013 was noted at 16.2 million square feet (msf), which was a decline of 15 percent compared to the same period last year. 

The net absorption for Grade A spaces till Q3 2013 was recorded at 15.2 msf, registering a decline of 7 percent y-o-y. The third quarter also witnessed a decline of 27 percent and 19 percent respectively in net absorption for All Grades and Grade A spaces from Q2 2013.

A noteworthy trend in net absorption this year was the increasing preference for Grade A spaces. The contribution of Grade A spaces to the overall net absorption till Q3 has increased to 93% as compared to 86% last year during the same period. The quarter-on-quarter (q-o-q) Grade A net absorption increased from 94% in Q2 to 104% of the overall net absorption in Q3 2013.

Slower economic growth has led to the decline in expansion by companies as cautious sentiments have continued since the beginning of the year. While the second quarter had seen a marked improvement in overall office space net absorption due to expected improvement in growth and productivity, it declined in the third quarter.

However, the past few quarters have seen an increasing trend of relocation amongst companies. Across top cities, companies are relocating from Grade B and C spaces to quality Grade A developments. Majority of these relocations are from CBD and Off-CBD locations commanding higher rentals to more affordable suburban and peripheral locations.

Such locations have been able to maintain the demand despite the lull in the markets due to the superior quality of office spaces being offered at competitive pricing along with better amenities. Many cities have also seen big IT companies relocate from one building to another building within the same micro market due to cost advantages.

Also, in the tough economic conditions, many companies have consolidated their multiple offices, spread across the city, to a single large office to maximize operational efficiencies.

During 2013, Mumbai recorded the highest overall net absorption of 3.57 msf in all grades followed by Bengaluru and Pune at 3.04 and 2.99 msf respectively. However, Mumbai, Bengaluru and Chennai (in due order) contributed to the highest net absorption in Grade A spaces.

Mumbai and Bengaluru saw a decline of 28% and 7% in overall net absorption compared to the first three quarters of 2012. Chennai and Pune were the only cities to record a positive growth of 4% and 56% respectively in net absorption in the first three quarters of 2013 compared to same period last year.

Both NCR and Kolkata registered the highest decline of 41% each in overall net absorption followed by Ahmedabad recording a 37% drop and witnessed net absorption of 1.80 msf, 0.67 msf and 0.35 msf respectively.

Q3 2013 (July September) recorded an overall net absorption of approximately 5.3 msf, which was a decline of 15.5% compared to the same period last year and a decline of 27% from the second quarter of 2013.

Total leasing activity across the top eight cities saw an overall increase of 8% for Grade A spaces and 9% for All Grades till Q3 2013 as compared to 2012 numbers. Bengaluru, Chennai and Mumbai dominated the total volume of leasing activity, in the same order.

However, the increase in leasing activity in 2013  was highest in Bengaluru, Chennai and Pune compared to the same period last year.. In quarterly comparisons, Ahmedabad, Chennai and Pune witnessed a positive trend in leasing.

Similarly, fresh overall supply for the first three quarters of 2013 also declined by 16% and was recorded at 24.3 msf. Although, Grade A supply during the same period was noted at 22.0 msf, registering a 7% decline compared to 2012, contribution of Grade A supply as a percentage of total supply increased from 82% to 91% for the same period.

This depicts the increasing bias of developers towards Grade A developments to generate demand amidst a sluggish market. Vacancies for the top eight cities across all grades increased marginally and the overall vacancy rate was noted at 19.2% at the end of the third quarter.

Overall net absorption registered at 16.2 msf till date in 2013; across all grades supply recorded at 24.3 msf in the first three quarters of 2013 till date pune recorded highest increase of 56% over 2012 in office net absorption in 2013 only chennai and pune record positive growth in net absorption in the first three quarters of 2013 mumbai records highest net absorption in both all grades and grade a spaces followed by bengaluru during 2013 overall net absorption noted at 5.3 msf in q3 2013, a 27% decline compared to previous quarter.

Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield said, "The growth in leasing was dampened in the third quarter primarily due to continuing negative market sentiments as a number of companies continued to delay their investment and expansion plans given the recent downslide in the Rupee's value, current US federal government policies and stubborn inflation. 

Amidst this sluggish scenario, Grade A spaces offering good work environment at comparatively reasonable costs in suburban and peripheral markets have seen good demand. Many companies are relocating to such markets from CBD locations in a bid to cut costs, improve quality of work spaces and even reduce travel time for employees.

Even though companies have been cautious in their expansion, the trend is expected to improve, albeit slowly as more positive measures are introduced by the Government. By the end of the year office space absorption is expected to be at approximately 24 - 26 msf with markets such as Bengaluru, Pune and Mumbai leading the trend.

Hence, the office markets have been witnessing significant interest for preleased office spaces by institutional investors and private equity funds and also from some domestic corporate houses wishing to take advantage of the current low capital values prevailing in some of the key office markets across the country. Developers faced with liquidity issues have been offering competitive pricing for their projects and we expect healthy activity in the segment."

ALL GRADES:

 

 

GRADE A:

Source: Cushman & Wakefield Research

Ahmedabad:
Overall net absorption in Ahmedabad for the first three quarters of 2013 was recorded at 0.35 msf, a decline of 37% compared to the same period in 2012. Net absorption among all grades of offices for the third quarter stood at 76,000 sf, registering a marginal decline of 6% from the previous quarter while Grade A net absorption recorded an increase of 26% q-o-q.

The city saw the lowest absorption and leasing activity across top eight cities during the year. Though most of this absorption was concentrated primarily in the suburban submarkets of Prahladnagar and S.G. Highway, the existing high vacancy levels in these submarkets have led to a 6% decline in quoted rentals in S.G. Highway and Prahladnagar.

Low levels of pre-commitments in upcoming projects are expected to result in an increase of vacancies, thereby inflicting additional pressure on rentals in these two submarkets.

The city witnessed no new supply in the last two quarters. This has led to a decline in vacancies compared to a year ago despite the low transaction activity. Grade A vacancies have declined by 1.7 percentage points q-o-q to 31.3% while All Grade vacancies have dropped by 0.5 percentage points in the quarter to 14.2%.

Rentals in the CBD declined by 8% during the quarter due to increasing vacancy in the sub market. Most of the companies are opting for suburban areas due to non-availability of Grade A spaces in CBD. Rentals were stable at Ashram Road due to low vacancy and low transaction activity. Strata sales of office spaces continue to be the norm for most developments in the city; some projects have up to 60% of their space sold to end-users.

Bengaluru:
Bengaluru witnessed an overall net absorption of 3.04 msf in 2013, a decline of 7% compared to the same period last year. The net absorption for Grade A spaces increased by 34% during the same period. Overall net absorption in Q3 was down 25% and stood at 1.2 msf.

Around 95% of this net absorption was in Grade A developments hinting a clear preference for quality office spaces. Net absorption comprised only 60% of the total leasing activity for All Grade spaces and 72% of the leasing activity for Grade A spaces.

This indicated that even though the transactional activity increased by 48% and 90% respectively for All Grade and Grade A spaces, net effective space take-up in the city had reduced considerably and more businesses were relocating to comparatively cheaper but quality office spaces (indicated by increase in leasing activity of Grade A spaces).

Outer Ring Road (ORR) and Whitefield continued to be a preferred occupier destination due to connectivity with central and suburban locations coupled with growing residential catchments in these locations.

Despite the overall sluggish transaction activity, Bengaluru still featured amongst the top three cities in terms of both leasing activity and net absorption indicating the importance of the city in Indian office sector dynamics.

The city witnessed an overall addition of 4.6 msf of office space in 2013, registering a decline of 22% compared to 2012. Nearly 91% of the supply during the year was Grade A space.

The city witnessed an total influx of close to 1.5 msf (all of which was Grade A) during the third quarter down 9% from the previous quarter. Close to 40% of the total supply during the quarter was in IT-SEZ projects, all of it along ORR. All Grade vacancy remained stable at 14.5%.

Rental values remained in similar ranges across most submarkets with a quarter-on-quarter variation of merely 1-2% in their values. With increase in inquiries by companies overall sentiments remain optimistic.

Transaction activity is anticipated to surge towards the end of the year along with the healthy supply levels. Rentals are expected to continue in a similar range in the upcoming quarter.

Chennai

Chennai witnessed overall net absorption of 2.27 msf for the first three quarters of 2013, a rise of 4% compared to the same period in 2012. It was amongst the two cities that noticed positive net absorption in year to date comparison. 85% of the total net absorption during the year was concentrated in Suburban Perungudi-Taramani.

All Grades net absorption decreased by 44% q-o-q in Q3 and was reported at approximately 767,000 sf. Chennai's office markets witnessed the highest relocations amongst all the cities with Net Absorption for All Grade spaces amounting to only 25% of the total leasing activity in Q3 2013.

For Grade A spaces, net absorption was 52% of the total leasing during the quarter.  Comparing net absorption numbers, the absorption for Grade A spaces in Q3 was nearly double that of All Grade spaces.

The IT-ITeS sector continued to dominate leasing activity followed by the BFSI sector. Overall supply in the first three quarters of 2013 stood at 3.36 msf, an increase of 30% compared to the same period last year. Nearly 95% of this supply was contributed by Grade A spaces.

Supply during the third quarter declined 75% to 600,000 sf. With net absorption higher than supply, the overall vacancy levels in Chennai reduced by 0.4 percentage points over a quarter to 16.3% and vacancy levels for Grade A dipped by 1.8 percentage points to 18.1%, indicating a rise in popularity for such spaces.

Weighted average rentals in CBD dipped due to an increase in vacancy caused by relocations. Increase demand for office spaces in Suburban Perungudi-Taramani resulted in rental appreciation at the location during the quarter. Rentals in most other sub markets continued to remain stable during the quarter.

Quoted rentals in locations like Suburban-Guindy and Suburban Perungudi-Taramani could increase in the coming quarters due to buoyant demand for spaces in these sub markets.

Hyderabad

Overall net absorption in Hyderabad for the first three quarters of 2013 declined by 23% to 1.54 msf compared to the same period in 2012. With low levels of pre commitments, net absorption for All Grade and Grade A spaces in the third quarter was recorded at 266,000 sf and 53,500 sf respectively witnessing the highest quarterly decline of 65% and 92% amongst the top eight cities.

Hyderabad was the only market amongst top eight cities where the activity in Grade B and C spaces during Q3 overshadowed the Grade A spaces.  This could mainly be attributed to low supply for Grade A space in the city. This year saw infusion of only 0.63 msf of Grade A supply, majority of which was pre-committed.

Grade A spaces contributed to only 20% share in the total leasing activity of approximately 0.27 msf witnessed during the quarter. Absorption during the year was concentrated primarily in suburban Madhapur and Gachibowli. Overall supply in 2013 also witnessed a decline by 33% in the first three quarters compared to 2012 and was noted at 1.64 msf.

Also, overall net absorption for the quarter contributed to just 31% of the total leasing activity during the period indicating the high quantum of relocations. All Grade supply during the third quarter was recorded at 632,000 sf, a decline of 34% compared to the previous quarter, whilst there was no Grade A supply.

All Grades vacancy was noted at 17.8% in Q3, an increase of 0.6 percentage points over the second quarter. With no new supply during the quarter and negligible transaction activity, vacancy levels for Grade A spaces in the city remained stable at 12.6%. Rental values remained stable in most micro markets during the quarter.

Upcoming supply is primarily concentrated in suburban areas of Gachibowli and Madhapur, which continue being favoured by occupiers. Rentals are expected to remain stable in all submarkets in the short term till economic condition improves and the political situation settles in the city.

Kolkata

Kolkata recorded an overall net absorption of 0.67 msf during the first three quarters of 2013, registering the highest decline of 41% as compared to the same period in 2012 amongst the top eight cities. Overall net absorption during the third quarter was nearly 179,000 sf, a decline of 43% compared to the second quarter. 

Kolkata came second only to Ahmedabad it terms of the weakest transaction activity noted during the year and in Q3 2013. However, net absorption in the city contributed to almost 88% of the leasing activity during the quarter indicating stronger growth in the office leasing markets compared to the other cities.

Also, Grade A spaces dominated the market activity in Kolkata. Transaction activity during the year was concentrated in the micro markets of Rajarhat and Salt Lake. All Grades supply for the first three quarters of 2013 was 1.26 msf, an increase of 22% compared to the same period in 2012. 

The city witnessed total supply of 205,000 sf of Grade A space during the quarter registering a significant drop over the previous quarter.

Overall vacancy in the city increased marginally to 23.1% at the end of the third quarter. Rentals at Rajarhat and Salt Lake declined marginally during the quarter due to high vacancy levels existing in the submarket despite the transaction activity.

All Grade weighted average rentals in CBD micro markets appreciated by 4% due to new developments quoting higher rentals than market average. Rentals are expected to remain stable in most micro-markets in the coming months.

However, rentals in Sector V Salt Lake are expected to continue to be under pressure due to existing high vacancy levels and anticipated infusion of good quantum of supply during the last quarter.

Mumbai

Overall net-absorption for the first three quarters of 2013 stood at approximately 3.6 msf, registering a decline of 28% compared to the same period in 2012.

Despite the decline, Mumbai registered the highest net absorption amongst the top eight cities for both All Grade and Grade A spaces. Q3 numbers depicted an overall decline of 30% in net absorption to 1.1 msf. Nearly 90% of this net absorption was in Grade A spaces.

The quarterly activity depicted little or no relocations with net absorption falling in line with the leasing activity during Q3. Net absorption during the year was mostly concentrated in the submarkets of Thane-Belapur Road, Malad-Goregaon and Andheri-Kurla.

Overall supply during 2013 witnessed a decline of 55% compared to the same period in 2012. Overall supply during the quarter was 317,000 sf in the form of IT-ITeS development at Goregaon, a substantial decline compared to 2.2 msf of supply in the previous quarter.

The low supply and decent transaction activity during Q3 resulted in Grade A vacancy declining to 20.2%, from 22.1% in the previous quarter. The only submarket witnessing a rental change was Malad-Goregaon where Grade A rentals appreciated by 6% due to healthy demand and low vacancies in IT developments.

Pre-commitment levels in the city witnessed a steady decline with high availabilities in most suburban and peripheral markets.

National Capital Region

NCR witnessed the highest decline of 41% and 55% respectively in net absorption of All Grade and Grade A spaces in the first three quarters of 2013. Q3 2013 overall net absorption witnessed a decline of 42% compared to the previous quarter and was noted at 0.38 msf as occupiers remained cautious towards expansion and new space take-up.

Nearly 97.5% of this net absorption was contributed by Grade A spaces. Besides IT-ITeS, the energy and engineering sectors also witnessed healthy leasing activity during the quarter, contributing significantly to the total absorption.

Delhi's CBD and Noida micro markets saw a few relocations within themselves during the third quarter. Net absorption during the year was concentrated majorly in Gurgaon CBD and other locations in Gurgaon.

Though the overall supply of 5.3 msf during 2013, registered an increase of approximately 16% in YTD comparisons, with quarterly supply amounting to 1.15 msf, there was a decline of 40% from the second quarter. Despite this decline, the NCR still was positioned amongst the top three cities in terms of quarterly supply.

Further, though leasing activity in Gurgaon's CBD was strong, it still saw its overall vacancy rates increase by 4.0 percentage points over previous quarter due to a large supply infusion.

Rentals in Delhi's CBD declined by 3% during the quarter given the sluggish demand for office space and comparatively higher rentals in this submarket. With prevailing cautious demand sentiments and slowdown in supply, rentals across most micro-markets in NCR are likely to remain stable in the subsequent months of the year.

Pune

Pune witnessed an overall net absorption of 3 msf in 2013, an increase of 56% compared to the same period last year.  The city witnessed the biggest quantum and the highest increase of 53% in quarterly incremental space take up with overall net absorption for the third quarter registered at 1.3 msf.

Net absorption for Grade A spaces increased by 70% q-o-q to 1.2 msf and contributed to nearly 94.5% of the total net absorption. Pune's office markets also witnessed a decent churn of spaces with many occupiers opting for competitively priced offices in the same or nearby markets in the suburban and peripheral areas.

Net absorption during the quarter mainly was concentrated in areas like Yerawada, Shivaji Nagar, Nagar Road, Viman Nagar, Kharadi and Hinjewadi. The city also noted the highest supply of 2.28 msf during the quarter as compared to a total supply of 1msf in the first two quarters of the year.

Around 95% of this new supply was in Grade A developments. The high supply infusion has resulted in overall vacancy increasing by 2.1 percentage points to 23.8% at the end of the quarter.

All Grades weighted average rentals in areas like Kalyani Nagar, Airport Road, Viman Nagar, Kharadi, etc. increased due to developers/investors quoting higher rentals than market average for the new supply. Rentals in areas like Hinjewadi and Wakad also appreciated due to increase in asking rates for existing stock.

The Off-CBD I market comprising areas like Karve Road, Deccan Gymkhana, FC Road, Jungli Maharaj Road, Ganeshkhind Road, SB Road, Wakdewadi was the only exception where weighted average rentals for Grade A vacant stock saw a decline as some prime office stock at the higher end of the rental range was absorbed and most of the existing vacant stock was available at lower rentals. 

The healthy supply expected in the coming quarters will result in rise of vacancy levels. However, decent levels of transaction activity are expected to result in rentals remaining stable in the near future.

 

Source: Cushman & Wakefield Research

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ITC Q2 net profit up 21.5% to Rs 2,230 cr, sales disappoint

Oct 25, 2013, 04.17 PM IST

Net Sales increased 8.9 percent (far lower than analysts' expectations) to Rs 7,780 crore during September quarter from Rs 7,146 crore in a year ago period, dented by slow volume growth in cigarette business and fall in agri volume.

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ITC Q2 net profit up 21.5% to Rs 2,230 cr, sales disappoint

Net Sales increased 8.9 percent (far lower than analysts' expectations) to Rs 7,780 crore during September quarter from Rs 7,146 crore in a year ago period, dented by slow volume growth in cigarette business and fall in agri volume.

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ITC Q2 net profit up 21.5% to Rs 2,230 cr, sales disappoint

Net Sales increased 8.9 percent (far lower than analysts' expectations) to Rs 7,780 crore during September quarter from Rs 7,146 crore in a year ago period, dented by slow volume growth in cigarette business and fall in agri volume.

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Moneycontrol Bureau

Cigarette-to-hotels major ITC reported higher-than-expected 21.5 percent growth in its net profit of Rs 2,230 crore in three months period ended September 2013, but it disappointed with sales growth.

Net Sales increased 8.9 percent (far lower than analysts' expectations) to Rs 7,780 crore during September quarter from Rs 7,146 crore in a year ago period, dented by slow volume growth in cigarette business and fall in agri volume.

According to a CNBC-TV18 poll, analysts on an average had expected the company to report net profit of Rs 2,115 crore on revenues of Rs 8,140 crore for the quarter.

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Realty check: Why the NCR market is seeing a slowdown

CNBC-TV18's Prime Property focuses on the National Capital Region (NCR) with the special focus on the South Delhi market. The NCR often called Indian most speculative market in realty circles has been hit badly by the slow down.

Prices in prime South Delhi market have fallen by almost 30 percent over the last one year and you can negotiate discounts and freebies. It is not just builders that are willing to lower prices but even high net worth individuals (HNI) and investors who are looking to dispose off their assets in this slowing economy.

For instance, in a recent sale of flat on a 500 square yard plot in Kauz Khas Enclave was sold for Rs 8 crore. The market rate a year ago was Rs 12 crore.

(Also Read: Worst is probably not over for Indian economy: Poll)

Santhosh Kumar, CEO- Operations, Jones Lang LaSalle India says: "At this moment it is definitely the buyers market. They have the great bargaining power, if they have the capability to make the upfront payment because today the cash is king. If the buyer wants to get a good price negotiation and they have the scope to negotiate with the land owners or the owners of the properties because we can see how the inventories at this moment are really going high and various options are available."

The South Delhi property market is made up primarily of builder flats which still a few months ago were trading north of Rs 7 to Rs 10 crores a piece. This space is occupied not so much by established Pan India players but by local builders like Salcon, Utpal and Saluja's.

What typically happens is a family or a land owner enters into an agreement with one of these builders to develop what a commonly known as builder floors. The number of floors depends on the plot size.

One of the worst hit areas in South Delhi is the posh Defence Colony. Brokers say flats on a small 217 sq yard plots are being quoted for more than Rs 6 crore and in excess of Rs 7.5 crore for ground floor apartment or the top floor with terrace. This would have cost you Rs 9 to 11 crore a year ago. The starting price of a flat on a bigger plot size of 325 sq yards today is Rs 9-11 crore and that would not have come for less than Rs 13 crore a year ago. We spotted dozens of these new floors lying vacant for want of buyers.

The story is same in Vasant Vihar which is considered even more upscale than Defence Colony. Investors like Vasant Vihar as properties could easily be put on rent. But brokers say the situation is different today.

Prices have fallen for 2,000 sq ft apartment from Rs 12-14 crore to Rs 10-12 crore. Even other South Delhi colonies like Greater Kailash, Panchsheel Park, New Friends colony are seeing the pain.

Santhosh Kumar says: "Areas like Vasant Vihar, Panchsheel or Greater Kailash I& II, Saket these are some them where plenty of supplies are there that are coming into the market and what we have seen is that there are unorganized developers who are ready to sell their properties or which has been developed in these colonies even at a lesser price because they do not have the ability and the capability to hold on to these properties for long time."

Here is a word of caution before you choose to invest.

Santhosh Kumar says: "They need to be aware of what is happening in the market and some of the transition, very recent transition they should be aware of before negotiating the prices. They need to look at the background of the developers and the builders. Secondly, whatever the commitment they are going to get from the developer or the owners and needs to be very well documented and proper due diligence needs to be made before they enter into any kind of agreement with the seller."

This much is clear that we are in the midst of the buyers market and the final discount depends completely on your negotiating skills. But builders are also offering freebies this festive season and it is not just gold coins and modular kitchens that we normally hear about. This is what is offered not just in South Delhi but also in neighbouring Gurgaon and Noida.

Santhosh Kumar says: "We have seen people offering lesser discounts, giving cars or there maybe another flats in our tier II locations they are offering at lesser prices. So those kind of incentives, in addition to aggressive promotions they are doing, giving them free vouchers, free foreign travels, giving them motor cars and all that, these are some of the freebies which they are offering to the clients."

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LIC to increase equity investment this fiscal: Chairman

LIC is likely to cross its initial investment target of Rs 40,000 crore in equities this fiscal following the positive market sentiment, Chairman of the largest domestic institutional investor S K Roy said today.

"We have done around Rs 32,000 crore in new equity purchases as of now... When Rs 40,000 crore of investment was fixed, it was based on certain things. But now things have changed. In the second half, if opportunities come, then Rs 40,000 crore will be not a limitation," he said.

"This year, obviously, opportunities are more than what was anticipated. So, in all likelihood, this figure is likely to cross...," Roy told reporters on the sidelines of an insurance summit organised by industry body Ficci here.

LIC had cashed out from Infosys by selling shares worth Rs 3,400 crore in Q2, bringing down its stake to 4.95 per cent from 6.72 per cent in Q1. As on September 30, it fell to 4.95 per cent as per the latest data available with the stock exchanges.

Infosys scrip has moved in a wide range from about Rs 2,300 level to around Rs 3,300 in the past 10 months.

Roy also said the life insurer will be able to achieve profit from investments at its targeted level this fiscal but declined to give any number.

"If the market is high, we will see how much we can sell for profit-booking. If the market dips, that gives us a buying opportunity. In that sense, we have got both opportunities in abundant measures this fiscal," Roy said, adding that sectors like banking, pharma, some portion of infrastructure and auto look attractive for investment.

The insurance behemoth also maintained its bullishness on public sector banks saying it will invest if good opportunity comes up in this space.

"Public sector banks are very attractive investment opportunity for us and subject to regulatory issues, we look at state-run banking stocks with lot of interest. If an opportunity comes...like tier-I capital building opportunity, we will be definitely very happy to invest," Roy said.
The Chairman also said the insurer is witnessing good opportunity in the debt space.

"There is an improvement in this segment also. We are getting good proposals which are under consideration. I am sure this segment will look up by the end of the year," Roy said.

On the growth in premium witnessed by the company, Roy said the second quarter had seen excellent growth in premium collection and the current quarter would be a better one than the previous quarter.

"Q2 had been an outstanding quarter for us... July was a good month with decent growth. In August, we have seen outstanding growth. I am confident of achieving Rs 33,000 crore of new premium collection in this fiscal. Up to October 15, we have achieved Rs 15,000 crore. Q3 will be a better quarter than Q2," Roy said.

LIC also said its products would be compliant with new product guidelines within the extended time frame provided by the regulator.

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FIPB nod toTata-SIA JV will fuel growth: CAPA

Kapil Kaul of CAPA — the aviation consulting firm — is of the view Foreign Investment Promotion Board (FIPB) approval given to Tata-Singapore Airlines (Tata-SIA) joint venture shows government's intent to move the economy forward. It is a milestone project in Indian aviation, he adds.

He does not see the venture hitting any roadblock ahead of the last few clearances like a no objection certificate (NOC) from the government followed by a Scheduled Operator's Permit (SOP) from Directorate General of Civil Aviation (DGCA). The entire process would not take more than six months, believes Kaul.

Moreover, he thinks it is critical for other airlines like SpiceJet , Go Air etc to have such kind of joint-ventures so that they are well capitalised not only to finance their losses but also to have working capital.

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

Q: FIPB has cleared Tata-Singapore Airlines JV. Was this on expected lines? What other clearances are now required?

A: The clearance was expected and we had said so in our report released a couple of days back. We had indicated that the FIPB approval would go in the first shot. I am glad that happened. It is an important milestone for that airline. Now they would move to the next regulatory clearances which are to deal more with the Ministry of Civil Aviation.

The first would be to getting the no objection certificate (NOC) from the government and that roughly should take 2-3 months and post that they would need to go to Directorate General of Civil Aviation (DGCA) for a Scheduled Operator's Permit (SOP) where they would need to go through series of preparedness meetings.

My expectation is that by end of January-early February, we could see them getting an NOC which will then set up a 6-8 months timeframe for the airline to start.

Q: Are there any riders to the deal that you would be watching out for or the approval of the joint venture?

A: I do not expect any challenges to the deal because now they only have to get the security clearance approvals, submitting a business case through the DGCA. So, it is a normal process of getting NOC and after that SOP. My own indication is that within next six months they should be able to get both the NOC, as well as the SOP.

Q: After you get the NOCs etc. how long will it take for the airline to be operational?

A: Given the fact that they have a very high level of professional expertise they should not take more time for the preparedness meetings with the DGCA post the receiving of the NOC. That should possibly be even 30-60 days. My assessment would be within 30 days, because they have the capability to go through the preparedness meeting quite quickly because they have the know-how.

NOCs probably take time because you need to get the Director of Security clearances and they need you to submit manuals and other things.

My sense is that it will take 2-3 months for NOC, then about a couple of months for the SOP and within six months they should get the permission to fly.

Q: Do you expect this airline to become a formidable player early on or will they consolidate and then expand?

A: Knowing Singapore Airlines, they would bring lot of preparedness and I think they would do a major expansion. They would not jump without having the fundamentals in place.  

However, it is a game changing project because this is a milestone project in the Indian aviation. The FIPB approval shows government's intent to move the economy forward.

Q: With large names like SIA, Etihad, who have deep pockets getting into Indian aviation space do you think other lines like SpiceJet etc will have to go  ahead and tie up with a JV because the market conditions now will necessitate that?

A: I think this is critical for SpiceJet and to some extent other airlines which are in the market to make sure they are well capitalised. Not only in the interim to finance their losses but also have growth capital. It is critical to have secure funding position and that is key for both SpiceJet and perhaps GoAir.

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Goldguinea prices rise 11% in October series so far

At 15:46 hrs MCX GOLDGUINEA October contract was trading at Rs 25036 up Rs 110, or 0.44 percent. The GOLDGUINEA rate touched an intraday high of Rs 25059 and an intraday low of Rs 24950. So far 1689 contracts have been traded. GOLDGUINEA prices have moved up Rs 2547, or 11.33 percent in the October series so far.

MCX GOLDGUINEA November contract was trading at Rs 24493 up Rs 107, or 0.44 percent. The GOLDGUINEA rate touched an intraday high of Rs 24500 and an intraday low of Rs 24350. So far 1051 contracts have been traded. GOLDGUINEA prices have moved down Rs 1457, or 5.61 percent in the November series so far.

MCX GOLDGUINEA December contract was trading at Rs 24424 up Rs 146, or 0.60 percent. The GOLDGUINEA rate touched an intraday high of Rs 24500 and an intraday low of Rs 24271. So far 138 contracts have been traded. GOLDGUINEA prices have moved up Rs 421, or 1.75 percent in the December series so far.

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SAP Unveils SAP Multichannel Foundation For Utilities Software

Oct 23, 2013, 03.55 PM IST

A multichannel, self-service approach helps drive increased customer satisfaction, higher profit margins and lower average response times to customer requests.

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SAP Unveils SAP Multichannel Foundation For Utilities Software

A multichannel, self-service approach helps drive increased customer satisfaction, higher profit margins and lower average response times to customer requests.

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

SAP Unveils SAP Multichannel Foundation For Utilities Software

A multichannel, self-service approach helps drive increased customer satisfaction, higher profit margins and lower average response times to customer requests.

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SAP AG has announced the release of SAP Multichannel Foundation for Utilities software, enabling utility companies to provide real-time, unified customer engagement through customer-preferred channels. A multichannel, self-service approach helps drive increased customer satisfaction, higher profit margins and lower average response times to customer requests.

Click here for full story

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TRAI sticks to spectrum price-cut proposals

India's telecommunications regulator reiterated on Wednesday its recommendations for a sharp cut in the reserve prices in an upcoming auction for mobile phone spectrum, responding to clarifications sought by the telecommunications ministry.

Also Read: Reliance Jio gets Unified Licence to offer all telecom svcs

The Telecom Regulatory Authority of India had recommended last month that the reserve price for spectrum in the 900 megahertz band in some key cities be cut by about 60 percent, and also suggested a 37 percent cut in the reserve price for spectrum in the 1800 megahertz band.

The central cabinet has the final say on the spectrum price proposals, while a panel of ministers will decide on some other rules for the auction planned for January.

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Jignesh Shah won't be permanent shareholder director on MCX

Regulatory authority Forward Markets Commission (FMC) told CNBC-TV18's Varinder Bansal that Multi Commodity Exchange of India ( MCX ) needs to amend its artcile of association, which has given Jignesh Shah a permanent director seat on MCX board since 2006.

This is in line with the earlier directive by FMC to all commodity exchanges which said that there cannot be any permanent shareholder director on the commodity exchange board.

This will mean that Jignesh Shah will not be permanent shareholder director on MCX, but his place on MCX board on rotational basis will depend on the "fit and proper" status, which will be decided later by FMC. 

Also Read: MCX board approves appointment of 5 new directors

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Rising drug resistance threats global progress against TB

Cases of people infected with tuberculosis and the number of deaths from it fell in 2012, but progress on controlling the contagious lung disease is under threat from growing drug resistance.

In its annual report on tuberculosis, the World Health Organisation said the world was on track to meet UN goals for 2015 of reversing TB incidence and cutting the death rate by 50 percent compared to 1990.

Yet around 3 million people with TB are being missed by health systems, and "superbug" drug-resistant strains of the bacterial infection are putting progress at risk.

"Far too many people are still missing out on care and are suffering as a result," said Mario Raviglione, the WHO's director of the Global TB Programme.

"They are not diagnosed, or not treated, or information on the quality of care they receive is unknown."

TB is often seen as a disease of the past, but the emergence over the past decade of strains that can not be treated with existing drugs has turned it into one of the world's most pressing health problems.

Of all infectious diseases, only HIV - the human immunodeficiency virus that causes AIDS - kills more people than TB.

In 2012, an estimated 8.6 million people developed TB and 1.3 million died from the disease, including 320,000 deaths among HIV-positive people, according to Wednesday's WHO report, down from 8.7 million cases and 1.4 million deaths in 2011.

Raviglione said insufficient resources for TB were at the centre of all the hurdles to further progress. The WHO says USD 7 to USD 8 billion a year is needed for a full response to the global TB epidemic by 2015, and there is a funding shortfall of some USD 2 billion a year.

Weak links

Many TB programmes do not have the capacity to find and care for people in hard-to-reach groups - such as the homeless, the poor, and the marginalised, who often live outside any formal or state health system.

Weak links in what health experts call the "TB chain" -connecting proper detection and diagnoses to quality treatment and care - lead to people in these groups being missed.

The WHO estimates that 75 percent of the 3 million missed TB cases are in just 12 countries, with South Africa, Bangladesh, India and Pakistan among them.

On the issue of multi-drug resistant TB (MDR-TB), the WHO report said the problem was not only that the links in the chain were weak, but that links were not even there.

The UN health agency estimates that 450,000 people fell ill with MDR-TB in 2012 alone, with China, India and Russia worst affected, followed by another 24 other countries.

More worrying, around 16,000 MDR-TB cases reported to WHO in 2012 were not put on treatment, with long waiting lists becoming a increasing problem.

Raviglione said it was unacceptable that increased rates of diagnosis were not matched by more access to MDR-TB care.

"We have patients diagnosed but not enough drug supplies or trained people to treat them," he said.

Grania Brigden, a TB adviser for the international medical charity Medecins Sans Frontieres, said the failure to improve rates of diagnosis and treatment for drug-resistant TB is being paid for in lives.

"The horrific scale of preventable suffering and death caused by the spiralling drug resistant TB crisis must spur governments, donors and WHO to mobilise the political will and secure the funding ... to tackle this deadly epidemic head on," she said.

The WHO's report is based on data from a total of 197 countries and territories that collectively have more than 99 percent of the world's TB cases.

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Madraasi yesterday, Mumbaikar today!

BankBazaar.com

Are you moving?

You can be moving over from Nasik to Pune, Tirupur to Coimbatore, Vijayawada to Hyderabad, Bangalore to Mumbai, Delhi to San Francisco or anywhere else too. You could even be moving from Bhatinda to New Jersey in one go. 

Like the rolling stone saying goes, moving over or relocating especially to a bigger place / city is a learning experience.  You have to unlearn and relearn how to walk, talk, dress up, eat, relax, spend and lot more all over again.

For Bhuvana it has been one of the most trying yet exciting phases of her life when she recently moved from Chennai to Mumbai. With bright career prospects and opportunities to earn from various quarters, Bhuvana and her hubby were thrilled and anxious about leaving a known devil.

Being a smart couple and having been trained in personal financial planning, the first thing they did when they knew they had to move was, count the chicks obviously before they were hatched. Okay, new salary we will spend so much - so we can save so much kind of calculations.

Moving to a new city usually entails one or more of the following.

New opportunities for spending

In a smaller city what would you really do during free time, during weekends, for celebrations? May be go to the temple, visit your relatives, hang out with friends or go to a movie in the local theatre.

But in a metropolis, in a bigger city you can do a lot more things visit malls, pubs, movies in state-of-the-art theatres, eat outs in 5 star hotels. In all probability the earnings have gone up, so give in to consumerism, particularly if that is what everybody else is doing. By the time you get over the awe, the pockets would dry up. But then, there are credit cards.

Not everything is more expensive

House rent, education, grooming etc may be expensive. Some things may be cheaper. House help, transport, comfort clothing may be cheaper. How does that work? More people, more money, more spending capacity means bigger markets.

This means markets allow competition. And whenever there is competition in the market place who wins, who is the king? The customer! It is up to you to work around the system to keep expenses under control. At least, now you are not dependent on the only fish vendor in town. You can check out, you can shop around.  You have options.

Living up to meet the standards

More opportunities mean more competition, doesn't apply only when you are the customer. It applies when you are the vendor too. At the workplace, in your business or profession you are probably working with very efficient and accomplished people.

You compete with the best of the brains. There are standards to be met. You have to be well groomed, well dressed, at your best all the time. Slips ups may be expensive. And needless to say, all that costs money. These are investments you have to make to stay ahead to maintain your higher earnings.

Check out with the locals

The locals have been there and done that. So, letting go of your inhibitions and striking that all important conversation with your neighbours will be very helpful in figuring out what works and what doesn't.

Bhuvana had the privilege of her neighbours helping her get a good deal with the house maid, with the milk vendor, with the purchase of a car and a lot more. 

Change your consumption patterns

Yes, rice costs 50 percent more here but wheat costs lesser. Vegetables most suited for south Indian food habits are way too expensive here, but those with which the locals cook are easily available and are much cheaper. Filter coffee is a luxury but tea is cool.

Once in the new place, trying to live the life of your hometown would be way too ambitious. If you want to keep expenses under control, live the way the locals do.

Embrace the change; adjust to local trends and tastes, that way living will get easier on the pocket. You will be able to live up to your challenges while enjoying the luxuries of a big city life. Bhuvana and Ram have been able to do that. What about you....?

BankBazaar.com   is an online marketplace where you can instantly get the lowest loan rates , compare and apply online for your personal loan , home loan ,  car loan  and  credit card  from India's leading banks and NBFCs.

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Avoid cement space, advises Dipan Mehta

Dipan Mehta, member of BSE & NSE told CNBC-TV18, "Cement stocks have to be avoided at this point of time. They have had excellent run over the past two-three years or so. All the consolidation which took place in the industry and the kind of price discipline which they maintained certainly resulted in very good performance but now the overall economy is slowing down. Capex cycle is not picking up. We are seeing a lot of overhang of inventory in the real estate sector and capacity also has come in to play. Lot of cost have gone up because of diesel, coal etc."

"May be time has come for these companies to have a bad patch, I do feel coming through for this sector as a whole. I would like to avoid cement completely. May be if one is a long-term player with a view of 3-5 years then one could look at buying these stocks at a correction may be 10-15-20 percent lower or so. But until then these stocks are best avoided. There is so much of action happening in other sectors one does not really need to be invested in cement," he said.

Also Read: JK Lakshmi Cement Q2 net slips 80% on steep fall in prices

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Buy SREI Infrastructure; target at Rs 24-25: Pritesh Mehta

Pritesh Mehta of IIFL told CNBC-TV18, "Anil Dhirubhai Ambani Group (ADAG) stocks tend to do well whenever there is momentum in the broader markets. We have already seen participation from Reliance Infra and Reliance Power , but I am expecting Reliance Capital to join the rally. The stock has given a triangle breakout. It has also given a breakout above its 200-day moving average. Buy at current levels for a target of Rs 390."

"Our second pick would be SREI Infrastructure Finance . It is not a short-term trading opportunity or even a two day trade, but in fact it can also be a positional trade. The stock appears to be breaking out from a long sideways consolidation between Rs 17 and Rs 21. It has also given a breakout from a falling wedge pattern. Buy for a target of Rs 24 and Rs 25," he added.

"Our third and last pick would be Punj Lloyd . The stock broke out from an inverted head and shoulder pattern in the second week of October. Thereafter it went through a mild correction. It found support at the earlier breakout point and then it gave a flag breakout. The stock is up by 3-4 percent and expects a follow-up buying to come through in the counter. You can expect target of Rs 33-34."

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Refreshingly Sri Lanka: An island of retail opportunity

Jones Lang LaSalle

International property consultancy Jones Lang LaSalle has released its latest retail research report 'Refreshingly Sri Lanka An Island of Retail Opportunity'. The report highlights Sri Lanka's hottest potential retail hotspots and sharp-focuses on Colombo, which is the gateway for international tourists and a prime business destination. The report describes how the retail market in Colombo is growing rapidly and stronger than in any other market in Sri Lanka. 

Gagan Singh, CEO - Business (India) & Chairperson - Sri Lanka Operations, Jones Lang LaSalle says, "Analysing the retail scenario in Colombo based on various factors such as individual household expenditure, tourist's expenditure and along with the existing mall stock and future malls supply, we found Colombo's retail real estate is not growing as quick as the retail sector in the city. Based on our study, the total mall space required in Colombo is around 2.4 million sq. ft. while the actual mall stock available today is about 0.7 million sq. ft.  

With a weak mall supply for the next five years the shortage of mall space in Colombo will continue to remain at around 70% until 2017.  

"The size of the Sri Lankan retail market is estimated at between USD 25 billion and USD 30 billion, out of which organised players represent only 3%, " says Gagan Singh. "This offers growth opportunities for both global and domestic retailers in Sri Lanka."

Political and economic stability and major internationally funded infrastructural development have made Sri Lanka one of the most promising new real estate markets in the Asia Pacific region. Retail, in particular, is riding high on its impressive economic growth, which has increased the country's per capita income from USD 2,014 in 2008 to USD 2,923 in 2012.

Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India says, "The rising living standards of Sri Lankans are changing their spending patterns and preferences towards more quality branded goods and services. Colombo has witnessed the greats development of organised retail establishments in its up-market locations. Given the current trend in organised retail and brand presence, there is significant scope for enhancing targeted retail capacity in upcoming residential locations."

Sri Lanka has several potential retail hotspots, such as Colombo, Gampaha, Kandy, Kalutara, Galle, Kurunegala and Matara. Colombo reigns supreme in the country's overall retail potential - however, the lack of mall space and quality high street properties - hinders the expansion of both international and domestic retailers. Given the lack of supply of quality retail space along with good demand from retailers, rents are being pushed upwards.

Sri Lanka's local retail players have already built world-class supermarkets, apparel brands and electronics showrooms- and it is far from enough to meet the overall demand. 'Refreshingly Sri Lanka An Island of Retail Opportunity' brings forth the compelling wealth of opportunity that awaits retailers, mall developers and investors from across the globe in Sri Lanka.

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Silvermic prices rise 20% in February series so far

At 15:47 hrs MCX SILVERMIC November contract was trading at Rs 48760 up Rs 533, or 1.11 percent. The SILVERMIC rate touched an intraday high of Rs 49149 and an intraday low of Rs 48367. So far 34684 contracts have been traded. SILVERMIC prices have moved up Rs 2757, or 5.99 percent in the November series so far.

MCX SILVERMIC February contract was trading at Rs 50010 up Rs 498, or 1.01 percent. The SILVERMIC rate touched an intraday high of Rs 50411 and an intraday low of Rs 49890. So far 1998 contracts have been traded. SILVERMIC prices have moved up Rs 8010, or 19.07 percent in the February series so far.

MCX SILVERMIC April contract was trading at Rs 50989 up Rs 511, or 1.01 percent. The SILVERMIC rate touched an intraday high of Rs 51260 and an intraday low of Rs 50894. So far 47 contracts have been traded. SILVERMIC prices have moved down Rs 6127, or 10.73 percent in the April series so far.

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NHPC to consider buyback of equity shares

Oct 21, 2013, 04.09 PM IST

NHPC Ltd has informed that a proposal for Buy-Back of Equity Shares is to be considered by the Board of Directors of the Company in its Board Meeting scheduled to be held on October 24, 2013.

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NHPC to consider buyback of equity shares

NHPC Ltd has informed that a proposal for Buy-Back of Equity Shares is to be considered by the Board of Directors of the Company in its Board Meeting scheduled to be held on October 24, 2013.

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NHPC to consider buyback of equity shares

NHPC Ltd has informed that a proposal for Buy-Back of Equity Shares is to be considered by the Board of Directors of the Company in its Board Meeting scheduled to be held on October 24, 2013.

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NHPC Ltd has informed BSE that a proposal for Buy-Back of Equity Shares is to be considered by the Board of Directors of the Company in its Board Meeting scheduled to be held on October 24, 2013.Source : BSE

Read all announcements in NHPC

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Natco Pharma's EGM on November 14, 2013

Oct 21, 2013, 04.03 PM IST

Natco Pharma in its meeting held on October 19, 2013 had considered the proposal to issue of equity shares of Rs 10 each not exceeding 24 lakh on preferential allotment basis to CX Securities at a price of Rs 638.40. For the above proposal the board convened an EGM on November 14, 2013.

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Natco Pharma's EGM on November 14, 2013

Natco Pharma in its meeting held on October 19, 2013 had considered the proposal to issue of equity shares of Rs 10 each not exceeding 24 lakh on preferential allotment basis to CX Securities at a price of Rs 638.40. For the above proposal the board convened an EGM on November 14, 2013.

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Natco Pharma's EGM on November 14, 2013

Natco Pharma in its meeting held on October 19, 2013 had considered the proposal to issue of equity shares of Rs 10 each not exceeding 24 lakh on preferential allotment basis to CX Securities at a price of Rs 638.40. For the above proposal the board convened an EGM on November 14, 2013.

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Natco Pharma Ltd has informed BSE regarding a press release dated October 19, 2013. Natco Pharma in its meeting held on October 19, 2013 had considered the proposal to issue of equity shares of Rs 10 each not exceeding 24 lakh on preferential allotment basis to CX Securities at a price of Rs 638.40. For the above proposal the board convened an EGM on November 14, 2013.Source : BSE

Read all announcements in Natco Pharma

To read the full report click here

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Leasehold vs Freehold property: Which method is preferred?

Ramesh Nair
JLL India
 
A leasehold property defines the status of the land on which the property is built. Leasehold land on which construction takes place is ordinarily on long-term lease of 99 years onward. 

Specific to residential property on leasehold land, one may use the example of the MMRDA's Wadala development plan, wherein the land is given on long-term lease to various developers who can sell the units constructed on an outright basis. The developer ordinarily pays a substantial value for the long-term lease to the lessor up front.

Also read: Why have Mumbai apartment sizes reduced by 31%?

On completion of the project, the lease is transferred in the name of the society formed. The future of such properties post the lease term is uncertain to the extent of the amount that the lessor demands for renewal, which will need to be paid by the society.
 
Clarity on this is expected after the legal authorities reach a decision on the Nariman Point buildings, wherein renewal is imminent. A concrete formula is expected with respect to calculating the incremental value required to be paid by the societies for renewal.
 
Pros

Relatively cheaper prices, as the land cost to the developer is invariably less than that of buying land outright in a similar location. In other words, it is a good location at lower cost.

Usually, this arrangement is part of larger, well-planned developments which give provide the comfort of certainty of sound location attributes and properly planned infrastructure to support the development

Developers are ordinarily bound by certain timeline commitments towards the lessor, ensuring the interests of owners. A good example is the plots at Bandra Kurla Complex
A plot with clear title, as a thorough due diligence of the title is done and developer credentials are also intricately verified.
 
Cons

Uncertainty after the lease tenure

Possible additional and substantial liabilities in the future on renewal of the lease.

Possible devaluation of the property as the end of the lease term draws close
Possible transfer charges levied by the lessor on any transactions in the premises.
 
Developer Perspective

A builder is usually most concerned about costs incurred, so most developers will  prefer to build on leasehold property. The land cost is usually lower than that of purchased freehold land, and not all of this cost benefit is passed on to the buyer.

Land cost in premium locations is invariably the most significant cost to a builders, so any savings on this front are highly preferable.
 
In most cases, the builder will have completed all tasks and responsibilities associated with the plot long before renewal is due, and will have already exited the premises.

Therefore, he is not concerned whatever transpired after that. It is true that it is harder for him to leverage the land for funds initially, but the leasehold route is still the more preferable one.
 
End-User Perspective
 
Given a choice - and if the budget permits - it is preferable to invest in a freehold alternative, given the better clarity on the future. It is also easier to leverage a freehold property to procure funds in case of future requirements.

The author is the COO- Business at Jones Lang LaSalle India.

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CRISIL Q3 profit rises 93% to Rs 117 cr on exceptional gain

Oct 19, 2013, 05.47 PM IST

The firm sold its entire equity stake (49 percent) in India Index Services & Products (IISL), a joint venture with National Stock Exchange, for a total consideration of Rs 100 crore.

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CRISIL Q3 profit rises 93% to Rs 117 cr on exceptional gain

The firm sold its entire equity stake (49 percent) in India Index Services & Products (IISL), a joint venture with National Stock Exchange, for a total consideration of Rs 100 crore.

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CRISIL Q3 profit rises 93% to Rs 117 cr on exceptional gain

The firm sold its entire equity stake (49 percent) in India Index Services & Products (IISL), a joint venture with National Stock Exchange, for a total consideration of Rs 100 crore.

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Moneycontrol Bureau

Rating agency CRISIL 's third quarter (July-September) consolidated net profit climbed 93.3 percent sequentially (95.6 percent year-on-year) to Rs 117 crore on account of exceptional gain of Rs 66 crore on sale of stake in IISL.

The firm sold its entire equity stake (49 percent) in India Index Services & Products (IISL), a joint venture with National Stock Exchange, for a total consideration of Rs 100 crore.

"Exceptional item for the quarter represents profit of Rs 99.36 crore on a standalone basis and Rs 65.88 crore on a consolidated basis net of accumulated reserves," the company said in its release.

Consolidated net sales grew 7.7 percent Q-o-Q (5.7 percent Y-o-Y) to Rs 286.40 crore in the quarter gone by. The lower growth in revenues was due to extreme volatility in the Indian financial markets, coupled with high interest rates and a decline in economic growth.

The rating agency declared an interim dividend of Rs 3 per share for the financial year ending December 31, 2013.

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No wrongdoing by PM in Hindalco coal block allocation: PMO

Breaking its silence, the Prime Minister's Office today rejected any criminality in the controversial allocation of coal block to Hindalco , saying Prime Minister Manmohan Singh had approved it on the basis of "merits" of the case placed before him.

Also read: Hindalco has done no wrong; nothing to worry about: Birla

The PMO, while making it clear that Singh was the 'competent authority' who cleared the proposal mooted by the Coal Ministry in 2005, underlined that the allocation to a joint venture, including Hindalco , was not done at the cost of PSU Neyveli Lignite Corporation .

It released details of the sequence of events leading to Singh's approval on October 1,2005 and said "the Prime Minister is satisfied that the final decision taken in this regard was entirely appropriate and based on the merits of the case placed before him".

While defending the decision, the PMO referred to Singh's statements earlier that the government has nothing to hide and it will fully cooperate with CBI which is probing the case.

The allocation of Talabira coal block in Odisha is in the eye of a storm with CBI booking Aditya Birla Group Chairman Kumar Mangalam Birla and former Coal Secretary P C Parakh.

Parakh has said if he was accused of conspiracy, then the Prime Minister also should be made an accused as he had approved the revised decision.

The PMO acknowledged that the final decision on the allocation "differed" from the earlier recommendation of the Screening Committee. "This was done following a representation received in the Prime Minister's Office from one of the parties, which was referred to the Ministry of Coal," the PMO said in a statement.

The PMO said CBI is free to investigate the case as it may have got hold of some documents post-allocation.

On October 18, 2013, Hindalco Industries closed at Rs 114.70, up Rs 3.50, or 3.15 percent. The 52-week high of the share was Rs 137.00 and the 52-week low was Rs 83.05.

The company's trailing 12-month (TTM) EPS was at Rs 8.47 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 13.54. The latest book value of the company is Rs 161.96 per share. At current value, the price-to-book value of the company was 0.71.

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Supreme Petrochem Q2 profit soars 4 times to Rs 26.5 cr

Moneycontrol Bureau

Polystyrene manufacturer Supreme Petrochem 's second quarter (July-September) net profit surged four times year-on-year to Rs 26.5 crore on strong overseas revenues, despite higher tax expenses.

Net sales increased 28 percent to Rs 783.6 crore in September quarter from Rs 613.7 crore in a year ago period, including overseas income from operations of Rs 205.05 crore (as against Rs 97.43 crore in Q2FY13).

"The likely rationalisation of Styrene Monomer (main raw material) prices and stabilisation of rupee will help to improve market sentiment and assist demand growth in the last two quarters of current financial year," the company said in its release.

Tax expenses jumped four times to Rs 13.03 crore from Rs 3.25 crore during the same period.

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Petronet LNG disappoints, Q2 net slips 19% to Rs 182 cr

Oct 19, 2013, 05.14 PM IST

Net sales grew 12.8 percent quarter-on-quarter to Rs 9,449 crore in September quarter from Rs 8,377 crore in June quarter.

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Petronet LNG disappoints, Q2 net slips 19% to Rs 182 cr

Net sales grew 12.8 percent quarter-on-quarter to Rs 9,449 crore in September quarter from Rs 8,377 crore in June quarter.

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Petronet LNG disappoints, Q2 net slips 19% to Rs 182 cr

Net sales grew 12.8 percent quarter-on-quarter to Rs 9,449 crore in September quarter from Rs 8,377 crore in June quarter.

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Moneycontrol Bureau

Petronet LNG , the state-run importer of liquefied natural gas, disappointed street with its opeational performance in second quarter (July-September), but revenues came in above analysts' forecast. Net profit fell 19 percent sequentially to Rs 182 crore in the quarter gone by.

Net sales grew 12.8 percent quarter-on-quarter to Rs 9,449 crore in September quarter from Rs 8,377 crore in June quarter.

According to a CNBC-TV18 poll, analysts had estimated the company to report net profit of Rs 207 crore on revenues of Rs 9,327 crore for the quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 3.6 percent Q-o-Q to Rs 319 crore and EBITDA margin slipped 50 basis points on sequential basis to 3.4 percent while analysts had forecasted EBITDA at Rs 391 crore and margin at 4.2 percent.

Meanwhile, the company has commissioned its 5 MMTPA Kochi LNG terminal in September quarter.

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Tradeoffs inevitable in managing currency, says Gokarn

You cannot just look at the currency and the management of exchange rate as an isolated and standalone objective, says Subir Gokarn, director- Research at Brookings Institutions and former deputy governor.

Also read: Should RBI prevent further rupee appreciation?

Gokarn along with Samiran Chakraborty, head - Regional Research (South Asia) at Standard Chartered Bank shared his views on the RBI's role in stabilising the Indian currency.

"The rupee rising is bringing down the cost of unavoidable imports. It is therefore feeding through into lower inflationary pressures domestically. So, to prevent the currency from rising in an inflationary situation means that you are going to have to do something more on the interest rate side to offset the inflationary pressures of an undervalued currency. That is the choice that has to be made," adds Gokarn.

Below is the edited transcript of the discussion on CNBC-TV18.

Q: The connection is very compelling, as the currency has depreciated between 10-15 percent year-to-date and from year ago levels we have seen a salutary impact on the trade deficit. So at least to keep the trade deficit under control should the RBI concentrate on not allowing the currency to appreciate?

Gokarn: One cannot look at the currency and the management of the exchange rate as an isolated and standalone objective. You have to look at currency dynamics in the larger context of what is happening in the economy. And the very simple link is that if you are managing an inflationary situation, if the objective of monetary policy is to rein in inflation which clearly in the current circumstances it is, then the appreciating currency actually helps you do that.

The rupee rising is bringing down the cost of unavoidable imports. It is therefore feeding through into lower inflationary pressures domestically. So, to prevent the currency from rising in an inflationary situation means that you are going to have to do something more on the interest rate side to offset the inflationary pressures of an undervalued currency. That is the choice that has to be made, I am not arguing that one is necessarily superior to the other but you have to be aware of the tradeoff that is involved.

If one wants to protect the export sector, and keep the CAD under control by resisting the rupee appreciation, then squeeze on domestic demand is needed to manage inflation. Hence, what one is achieving is an expenditure switch or a demand switch.

You are pushing demand towards the export sector by keeping the currency undervalued. But you are offsetting that by reducing domestic demand which means you may be squeezing investment or domestic consumption.

That is a choice that policy makers have to exercise. But I don't think we should be operating under the notion that somehow you can do currency management and it is not going to have any consequences on the rest of the economy.

Q: Are you in agreement with the theory that the depreciation of the currency has helped in bridging trade deficit?

Gokarn: Yes overtime, we should be looking to see an improvement in the export performance as a result of the currency having depreciated. One thing that has also contributed to an improvement in the trade deficit from my view is that the US marketrs have actually now started to recovery.

Take away the last two weeks, the shutdown and the debt ceiling and all of that. Look at the US economy before that and after that. I think there is some buoyancy coming back into exports from the demand side. So, these factors are complimenting and to some extent offsetting each other.

When we talk about currency management, trying to peg the currency at a particular level, one has to take in account all the consequences that such an action has. And in the past when we have done it, we have experienced a massive increase in domestic liquidity.

It has been very difficult to sterilise all the results that were accumulated and so on. So there are consequences, there are side effects which will have to be accounted for and have to be thought about.

Q: Given this connection that in the past one year the rupee has depreciated by 15 percent and consequently the trade deficit has come down from USD 10 billion a month to about USD 7-8 billion a month. Is it very clear that a depreciating rupee is solving our trade deficit and CAD problems?

Chakraborty: There are sectors on which this is clearly showing up like on exports side. The growth that we are seeing on textile exports have been very significant this year. In the first five months, it is almost a 13 percent growth in textile exports, a significant improvement over the last year.

On imports side, on machinery imports, we are seeing a significant reduction in machinery imports which could be due to import substitution.

And lastly, there is a very curious case of petroleum exports where the currency depreciation has made the imports costlier but the government has not passed that in retail prices. So, it makes exporting that much more lucrative now and that is why probably we have seen more than a USD 3 billion increase in petroleum exports in the last five months.

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