Friday, October 31, 2014

Sensex hits record on Modi reforms

Sensex hits record on Modi reforms


The benchmark stock indices BSE Sensex and Nifty rose nearly 1% to a record high on Thursday despite the US Federal Reserve annoucing the end of its economic stimulus programme, which has unleashed a barrage of funds in Indian stock markets in the last few years.

How much did the indices rise?
The 30-share Sensex surged 248 points to end at new peak of 27,346.33, extending gains for the third day. The 50-share index ended higher by 78.75 points at 8,169.20 on Thursday after hitting an all-time intra-day high of 8,181.55.

Which stocks rose the most?
The Nifty has gained nearly 31% in US dollar terms so far this year to remain Asia’s best performing equity index, helped by optimism tied to the election of Narendra Modi as prime minister.

What did the foreign investors do?
Overseas investors pumped in a net Rs 785.61 crore on Wednesday, as per provisional data issued by stock exchanges. They net sold $11.6 million of Indian stocks on October 28, the first outflow in five days.

How much has been the rise this year?
The Sensex has increased 29% this year, the best performer among the world’s 10 biggest markets, and is valued at 15.6 times projected 12-month earnings, compared with the MSCI Emerging Markets Index’s multiple of 10.8. The Nifty has risen by 31% this year so far.

Why the record surge in stocks?
Brokers said fresh dose of capital inflows, good corporate earnings and rating agency Moody’s favourable report on rating profile of India also boosted buying as investors bought shares across-the-board.

Which sectors led the gains?

Gains were led by Realty, IT, Teck and Consumer Durables as 1,586 shares ended higher on BSE, pushing up investor wealth to over Rs 95.35 lakh crore.

Why did software makers rise?
Exporters led the gains on the Fed’s increased optimism about the US economy, with Infosys ending up 1.7% while Tata Consultancy Services gained 2.1%.

What are future levers?
The Reserve Bank of India’s efforts to contain inflation have also improved confidence. Hopes are now rising that the RBI will be able to ease monetary policy as early as its next meeting in December given a slowdown in consumer price growth.

Which were the biggest gainers?
Unitech rose 8.1% and DLF gained 5.1% on FDI easing in the construction sector. Reliance Industries also rose 2.9%

How did the firms posting results fare?
ICICI Bank rose 0.5% after posting a record profit in July-Sept, Maruti Suzuki India rose 1.1% while Dr Reddy’s Labs rose 1.6%.

IDFC Bank formed after parent board okays de-merger

IDFC Bank formed after parent board okays de-merger

Mumbai: Infrastructure Development Finance Company Ltd (IDFC) on Thursday informed stock exchanges that it received the board’s approval to demerge its financial undertaking into a wholly-owned step-down subsidiary IDFC Bank Ltd.
The financial undertaking will include transferring related businesses of financing, project finance (fund-and non fund-based), fixed income and treasury comprising all assets, liabilities, movable and immovable properties, employees, consents, approvals, benefits, licenses, contracts, deeds and tax balances to IDFC Bank.
Post demerger, around 53% stake in IDFC Bank will be held by IDFC Financial Holding Company Ltd (FHCL), a wholly-owned subsidiary of IDFC Ltd, and remaining 47% will be held by the shareholders of IDFC Ltd. As per the demerger proposal, IDFC will issue one equity share of Rs 10 each, fully paid-up of IDFC Bank Ltd for every one equity share of Rs 10 each held in IDFC Ltd, to the shareholders.
According to the communiqué, the board of directors at its meeting held on Thursday also approved the listing of shares of IDFC Bank on National Stock Exchange of India Ltd (NSE) and Bombay Stock Exchange Ltd (BSE).
On BSE, IDFC’s stock moved up 2.6% to close at Rs 148.70, on Thursday. The move is to comply with the Reserve Bank of India (RBI)’s norms for new private sector banks which calls for separation of banks from non-lending business. As per the rule, banks need to be controlled by a financial holding company, which can separately promote other regulated financial services activities.
The central bank had issued two fresh banking licences in August – one to IDFC and another to Bandhan.

Don’t escalate border row: China- Chinese military reiterates concern over Indian border posts in Arunachal

Don’t escalate border row: China
Chinese military reiterates concern over Indian border posts in Arunachal


Beijing: China’s military on Thursday expressed concern over India’s plan to construct 54 new border posts in Arunachal Pradesh, saying India should not complicate the situation and do more to maintain peace as it is a “disputed area”.
“We have noticed relevant report. Dispute still exists in the eastern part of China-India border,” defence ministry spokesman Yang Yujin said on the plans announced by the home ministry to build 54 new border posts along the Arunachal Pradesh border.
“We urge the Indian side to do more to maintain peace and stability in the area and not do things that may complicate the situation,” he said.
Asked why China is wary of India’s development of infrastructure along the border when it has carried out extensive development on its side, Yang said, “I think that the roads you are talking about are in the eastern part of the China-India border which is still a disputed area.” “China’s position on the dispute in this area is clear and consistent,” he said. China claims Arunachal Pradesh as southern Tibet. “It is an important consensus reached by the two sides to maintain peace and stability along the Line of Actual Control and both sides should do more towards converging direction rather than contrary,” he said. India announced setting up of 54 new border outposts and Rs 175 crore for beefing up infrastructre at the border.

Thursday, October 30, 2014

Rakesh Jhunjhunwala's next target: Shed 20 kilos, give away Rs 5000 cr to philanthropy

Rakesh Jhunjhunwala has set himself two important targets. By the end of the year, the man people like to call India’s Warren Buffett wants to be 20 kilos lighter than what he was at his peak weight. The second target is more serious: Jhunjhunwala plans to give away Rs 5,000 crore or 25 percent of his total wealth, whichever is lower, to philanthropy when he turns 60 on July 5, 2020. And Jhunjhunwala’s track record would validate the achievability of both targets.

Consider how investors hang on to every word the 54-year-old Jhunjhunwala says about the markets and the economy. Company managements often come to him and make presentations so that he invests in them. But he confesses that he is not as smart as people make him out to be. “My failures are far less known than my successes,” says the billionaire investor during a nearly hour-and-a-half long chat with Forbes India in his 15th floor, sea-facing office at Nariman Point, once Mumbai’s only business district.

In his simple office, people pore over Excel sheets and trading charts, and, occasionally, some of them enter his cabin to show him a paper or two.

Inside, dressed in a plain white shirt (which costs Rs 800, he informs us), black trousers and a Titan watch, sits Jhunjhunwala, surrounded by some more trading terminals and a large collection of Ganesha statuettes adorning the shelves. On the walls hang two separate sets of “commandments”—for trading and investing—which he keeps distinct from each other.

The past year, with a major bull run on the stock markets, has been great for Jhunjhunwala, whose wealth has grown by a hefty 62 percent during the period, positioning him at number 51 in the 2014 Forbes India Rich List (against 61 in 2013). His three key holdings—Titan Company, Lupin and CRISIL—have also seen handsome gains. Not surprising then that Jhunjhunwala had not made a single trade, either in the cash market or in futures, on August 7, the day Forbes India met him. For now, he can afford to rest easy and allow his investments to work for him

Changing Views
Jhunjhunwala’s love affair with the markets started early, when he was only 12 or 13 years old. His father, who was a civil servant, would discuss stocks with his friends and that got him interested in the markets. “I was a curious child and I would watch stock prices fluctuate,” he says. “I would ask my father why prices went up or down. He would point to news items and tell me that prices react to news. Those days, stocks like Century, Gujarat State Fertilizer and Grasim were the main ones.” As he began studying chartered accountancy (CA), his interest in the markets grew stronger. He would often go to the trading ring during lunchtime to get a feel of the place. Those were the days of open outcry trading and, for Jhunjhunwala, it was a world which had a romance and thrill of its own.

“My first investment was when I completed my CA in 1985,” he says, adding that initially, he would believe any company which had strong reserves and surpluses was good. “I have truly learnt by trial and error.”

Today, many years and several bull and bear phases later, he is much wiser and knows smart investing is far more than reading balance sheets. Ask him about his investment philosophy and he responds quickly that he is “too young” to have one. “Let’s not try to over-glorify things. I would say an understanding of the investment thought or process is required,” he says.

His journey as an investor has moved from the quantity of profits to the quality, and the recognition of what he calls ‘non-company factors’ on stock prices. “When you start, the quantum of profits is important, but then you realise that quality is more important,” he says. “So I would put it in a subtle and brief manner: Consistency, return on capital, corporate governance, payouts and such things are very important.”

Transitory Investor
For someone who has held on to his key investments for several years (he has remained invested in Lupin, for instance, for 11 years now), Jhunjhunwala is emphatic that he does not get emotional about particular stocks and buys every stock to sell.

“I have my love and emotions for my wife, my girlfriend, my mistress, my children, my brother, my sisters, my friends, not for stocks,” he jokes.

But if he feels it’s worth holding on to a stock for longer, he will do so. “I make an investment and I review it constantly. And I am not affected by a temporary loss in valuation,” he says. When he invests, he has an entry value and a perceived terminal value. He says he will sell either when he wants to bring leverage down or when he has a better opportunity, or when earnings have peaked and the price-earnings (PE) ratio is stretched.

Jhunjhunwala bought into Titan in 2002-03 at an average price of around Rs 5; the stock then rose to touch Rs 80 and later fell to Rs 30, but he did not sell a single share. “That Rs 30 is nearly Rs 375-400 today. And when it fell from Rs 80 to Rs 30, I lost Rs 300 crore of value in my portfolio. But I never sold as I thought that neither EPS [earnings per share] nor PE had peaked and there was a lot of growth still to come.”

Similarly, he kept the faith in his second big holding, Lupin. “From 2006 to 2009, Lupin went nowhere. It was in the Rs 135-150 range, but that Rs 150 is Rs 1,350 today. I always thought Lupin had good potential.”

His reasoning is simple. The Indian market, he says, is still not deep enough and doesn’t have too many good quality companies to buy into. And those that exist aren’t cheap. “I would, therefore, not like to sell in a hurry. I am also not one to flip-flop such that if I feel Lupin is fully priced, I’ll sell it and buy Tata Motors, and when that goes up, I buy something else. I am not so smart,” he says. “Why would I not hold on to the investments that have given me good returns?”

But he has also sold parts of his holdings in Titan, Lupin and CRISIL. “I wish I had not sold CRISIL, but I have.” In 2005, he sold Rs 27 crore worth of CRISIL shares and bought a house in Mumbai. “That house may be worth Rs 50 crore today, but if I had held on to the shares, they would be worth Rs 700 crore now, and tax-free,” he admits. While he made his base investment in Lupin in just around a fortnight, his investments in Titan and CRISIL were made over a span of a year-and-a-half.

Forever Bullish on India
There is a common thread in Jhunjhunwala’s top three holdings, though. A large part of the businesses of the three companies is linked to the Indian economy, especially that of CRISIL and Titan. “As much as 70 percent of CRISIL’s business and 25 percent of Lupin’s is linked to the Indian economy,” he points out. “And 85 percent of Indians don’t wear watches, so there’s so much space for Titan to grow. Jewellery is a Rs 3 lakh crore market, so even if they are at Rs 10,000 crore now, that’s just three percent of the market.” Clearly, Jhunjhunwala is betting on the Indian growth story. He insists the Indian economy will grow by 9-10 percent, though that may need a transition of two to three years. “Then where will you get these companies from?” he asks.

Ask him whether, in the absence of any clear signs of growth having picked up just yet, the bull run in the markets is a sign of irrational exuberance, and the star investor admits that the market does have its excesses on both sides. He is not happy or unhappy that it happens, but he makes sure he doesn’t cause it in any manner.

“In 2007-08, I didn’t go at 6000 Nifty and tell people to buy stocks. I told them to sell. We should never try to fuel [the excesses] on either side. But it is our God-given birthright to take advantage of it. That it is going to happen is a reality,” he says. “As long as human nature remains what it is, excesses will happen. And I don’t think human nature is going to change.”

Jhunjhunwala isn’t taken in by the lofty analyses market-watchers put out. “When I hear people say it is a liquidity-driven market, I don’t understand all this English,” he points out. “Stocks go up as there is a paucity of sellers. Whether it is liquidity, whether it is fundamentals, what is fair value… has your grandfather given you the right to judge what fair value is? When people get left out, they say it’s a liquidity-driven market.”

Just as he analyses companies carefully, Jhunjhunwala also likes to assess the country’s potential. India, he points out, has the skills, the demography, a culture of acceptance and patience and natural resources. “We have all the ingredients of growth and you can’t take that away,” he says. A supporter of Prime Minister Narendra Modi, he adds: “We need someone who can act as a catalyst and simplify things so that we as a society can prosper. I am not an economist. I am just Rakesh Jhunjhunwala, investor and trader. But I don’t see why India can’t grow at 9-10 percent. My faith in this country is impeccable. When people ask me what has made you successful, I say one of the greatest reasons of whatever God has endowed upon me is my belief in India and the stock market.”

Jhunjhunwala’s thesis is that Indians will save $1 trillion a year, and even if 10 percent of that money—$100 billion —flows into the markets, there will be a tsunami on the bourses. “So I remain bullish that, for the next 20 years, we could see a bull run like the one Wall Street had from 1987.”

The Power of Mistakes
A chartered accountant by training, Jhunjhunwala has a natural bent for data and analysis. But instinct, he says, plays a large role in the way he makes his investments. “What is research? For me, it is 40 percent data, 20 percent analysis, 40 percent instinct.”

Jhunjhunwala says what he has learnt in life is to try and earn money in trading and to invest it in stocks. And that’s what he does best. “Today, I can shop for Rs 50 crore of stocks, but if I have to buy a Rs 5 lakh watch, I will think 50 times.” But, as a framed sign in the waiting area in his office says, his ‘prayer’ is ‘God’s grace and elders’ blessings’. Luck plays a big part too, he concedes, but adds that luck “evens out for everyone over time”. God, he believes, has created everyone equal and not some luckier than the others.

While his successes are celebrated and the subject of stock market folklore, Jhunjhunwala says he doesn’t want to write books or articles on investing. He also stays away from managing other people’s money because that would impinge on his freedom apart from being a huge responsibility.

“Managing money is a very responsible business. I get very scared of advising people to buy this or that. Because things could change and then my view will change and it becomes difficult for me to communicate that change to them,” he says. “If you don’t believe the markets are supreme, you will never admit that it was your mistake. If you don’t admit that it is your mistake, you will never learn. Eventually we invest out of informed ignorance. I invest in a bank, jewellery, watch, pharma, software or EPC company, but finally I am investing out of ignorance. I cannot be a master of all these businesses.”

To succeed in the stock market, not only is the ability to learn from one’s mistakes vital, he says, but also to blame only oneself for it. “I don’t blame the promoters of companies. I blame myself. The promoter is what he is. I have to recognise that. He is not what I expect him to be.”

When an investment doesn’t work out and takes a beating on the bourses, how easy is it to get over the loss? “Over a cigarette,” he says. “There’s no point lamenting.”

Family, wealth and philanthropy
During the course of the interview, Jhunjhunwala talks repeatedly about his wife and family. His wife Rekha, (the first two alphabets of her name make up the second part of the name of his firm Rare Enterprises) and his three children—a 10-year-old daughter and twin sons who are five-and-a-half years old—are the people he spends his weekends with. A recent love, horses, is now in the process of being wound down since he finds it tough to spend weekends with his children if he has to be at the races.

So what does wealth mean to a man who, despite his billions, remains at the root a self-confessed ‘middle-class’ person?

“I think it means we value what we spend. If I want to buy a Rs 5 crore car and I enjoy it, I will buy it because I want it, not because I want to show it off. Already, people think I have far more wealth than I have,” he says. To him, wealth means freedom, a sense of achievement and a thrill. The thrill of being right about the markets. “I’d be lying if I say I don’t like the money. But it is for the thrill and fun of it and the competitive intensity.”

And he has been on the ball as far as his views on the markets are concerned. In August 2013, when stocks were tanking, he gave an interview, saying the mother of all bull runs awaited the markets. “Today, when I read the interview, I feel happy,” he confesses.

Jhunjhunwala says the income he gets from dividends is enough to take care of his requirements. “It’s not that I have some great income every year. That takes care of my charity, my office expenses, my interest payments. July to September are the best months because dividends come in,” he laughs.

The nature of his work is such that even if his family and he went off for a three-month cruise, nothing, apart from his trading income, would be affected, he points out. “So, I like to think I don’t have that money [the trading income],” he says.

Not someone who judges people (he was a heavy drinker and smoker until January this year when he was diagnosed with a lung ailment; since then he started leading a healthy life), Jhunjhunwala won’t make giving his wealth to his children conditional on how they lead their lives.

“I have no plans for them. I only want them to have my brains and their mother’s nature. And education, integrity and independence,” he says, pointing out that it was the freedom his father gave him that helped him shape his life and career. “But I will never use my wealth as leverage over them if I don’t like what they are doing.”

His children are Jhunjhunwala’s main priority but next on the list is philanthropy. “The giver of wealth is God and it is our duty that we share this wealth. To me the question also is, what will I do with all my money? I have no single asset to represent my wealth. I have no legacy of my company to leave, just two partners and ten employees,” he says, adding that he thinks a lot about philanthropy these days, particularly after he turned 50.

He now gives away 25 percent of his dividend income. This year, he would have donated anywhere between Rs 20-25 crore to charity.

Influenced by American billionaires such as John D Rockefeller, Jhunjhunwala says he admires the passion of Melinda Gates and Azim Premji in the area of philanthropy. Two major causes—nutrition and education—are on the top of his agenda and he aims to set up a quality institution of learning over the next 10 years, where he plans to put in over Rs 1,000 crore.

“About 40-45 percent of the money will go to nutrition because I believe it’s the biggest problem facing India,” he says. “And I also want to set up a Ralph Nader-type organisation which can study government expenditure and pressure the government to spend funds better.”

These days, Jhunjhunwala is trying to get a well-known personality to take charge of his R Jhunjhunwala Foundation as chairman. Once he agrees, he plans to hand over the running of the foundation to him. “I will, of course, retain the lifelong right to nominate the trustees, but I don’t want to run the foundation. It involves too many people and administrative work. That’s not my cup of tea,” he says.

His openness about his philanthropy goals has invited questions. Many people have asked him why he went public with his plans to donate his wealth in 2020. To that, the maverick investor responds with trademark candour: “I tell them, I am saying this now so that you can come back to me on July 6, 2020 and if I haven’t given it away, say ‘shame, shame.’”

Wednesday, October 29, 2014

Indian markets have a long way to go; retail investors to lead next leg of rally

It's not the first time that analysts across brokerage firms have reaffirmed their faith in Indian equity markets; however, what is more surprising is the fact that they see retail investors contributing in a big way going forward.

Benchmark indices have rallied over 26 per cent so far in the year 2014, fuelled by strong global liquidity and a reform push by the Modi government.

"I strongly believe that equity markets have a long way to go. It is true that we had a fast and quick run in the market and that made lot of investors cautious, especially the retail investors who are still avoiding the market because of their bad experience maybe five or six years ago. Also, because of very low valuation of companies during 2011 and 2012," says Porinju Veliyath, MD & Portfolio Manager, Equity Intelligence India.

"This has created some kind of a fear element in the market for retail investors. Generally, they (retail investors) tend to avoid the market. In fact, FIIs have been the major participant of this bull run," he adds.

Veliyath strongly believes that the next leg of the bull run will be supported by domestic buying.

Experts feel the bull market in India still remains intact and investors with a long-term horizon should not worry too much about small corrections and keep adding quality stocks on every fall.

Rakesh Jhunjhunwala, partner, Rare Enterprise, is of the view that the bull run will last for the next two decades. "But of course there will be serious corrections," he says.

Equity contribution to domestic savings has been at its lowest at 0.5 per cent. It was around 10 per cent during the peak period of Harshad Mehta days and also in 2007.

"The reason for this is the big bear market from 2008 to 2013 which devastated retail investors. Now that the market has been acquiring higher peaks, we can see retail investors coming back gradually," says S K Goel, Director, Bonanza Portfolio Ltd.

Having learnt the lesson the hard way, retail money is likely to come through mutual funds which have seen a rise in inflows. Goel is of the view that we are likely to witness a rise in the retail flow into the market this year.

Equity mutual fund schemes have turned attractive with investors putting in a staggering Rs 34,000 crore in them during the first half of 2014-15, PTI said in a report last week.

As per the latest data available with the Association of Mutual Funds in India (AMFI), investors have pumped in a net amount of Rs 33,790 crore in equity-oriented MF schemes in the April-September period.

Given the fact that markets globally are looking weak largely on account of growth worries, there is always a possibility that there could be a 'time consolidation' in the market, which could carry on till about December or January, say experts.


Levels of 7700-7800 on the Nifty will act as a strong base for the index and most analysts do not see it drifting below that despite uncertain global set-up.

"I do not see too much of correction and 7800 will act as a good base. The indications are positive for India. Even if the global markets become soft, the market for them to invest in will be India, and India will continue to attract a lot of foreign investment," says Sudip Bandyopadhyay, President of Destimoney Securities Pvt Ltd.

"Domestic retail is also getting into the act. A couple of good IPOs and we could end up seeing a lot of retail investors coming back to the market," he adds.

Tuesday, October 28, 2014

BE STYLISH LIKE KATE MIDDLETON

BE STYLISH LIKE KATE MIDDLETON






Catherine Middleton, the Duchess of Cambridge, better known as Kate Middleton, has had the world intrigued with her style and charisma ever since she became a part of Britain's royal family .She's a mother of one and is all set to welcome another child, but Kate still continues to wow the world. Much has been spoken about her sense of style and dressing over the years, and we bring you different looks of the Duchess on various occasions, including her latest...

LITTLE BLACK DRESS

In her latest public outing, the Duchess showed off a little of her baby bump in a crocheted dress that she wore for a gala dinner for Action on Addiction in London recently . She looked every bit the regal princess with her brushed hair left loose like it usually is.

LEGGY BEAUTY

Kate chose to show off a little more of her legs than her usual `just above the knee' dress. When attending the Wildlife Photographer of the Year Awards Ceremony , Kate wore a pale blue evening gown that she teamed with a light pink tie around pair of heels.

PAINT IT PINK

In an appearance with her husband, William, and his younger brother Harry , Kate wore a light pink coat dress that she teamed up with an equally elegant hat. She was in her trademark pair of pearl earrings and a clutch to match. Her second pregnancy seems to have enhanced her sense of style.

TAKING IT LIGHT

The Duchess has been suffering from a serious bout of morning sickness, but she hasn't let that affect her style. In fact, she has painted an elegant picture every time she steps out. At an outing with the young Prince George and husband William, Kate was at ease in a zoo wearing a pastel yellow dress that she paired with brown wedges.

KEEP IT CASUAL

Kate gives a lot of people a run for their money even in a pair of denims. At what seemed to be a play date with her young son Prince George, Kate wore a pair of denims with a striped threefourth sleeves top and a pair of loafers.

CHECKS IT IS

In another appearance made some time ago, Kate rode in a carriage procession to the Buckingham Palace for a state visit by the President of Singapore.She wore a grey check coat dress, accessorised it with a stylish hat and complemented the look with a set of pearl earrings.

Kate rocked the look with her hair tied at the nape and a pair of black pumps.

















NEST Scholarships-2015 for Degree Students of Science, Engineering and medical Courses

NEST - 13th Nationwide Education and Scholarship Test - 2015
Nest Scholarships-2015 for Degree Students of Science, Engineering and medical Courses

imggallery

Decipher your stock date's physical cues

Decipher your stock date's physical cues


What most of us are unaware about, is that communication is only 20% about words and sentences and the major chunk of it -80% -is actually non-verbal. Clichéd though it may sound, the adage, `actions speak louder than words', holds true when it comes to non-verbal communication. Clinical psychologist Kanan Khatau Chikhal says, “We depend a lot on what a person is saying vis-a-vis noticing what their body postures are, or what their body language is. What people do not say comprises the largest part of what they are trying to say .“ She says that for a better understanding of another person, and for more successful relationships, we need a paradigm shift and we must begin to notice what the other is not saying. 
Seema Hingorrany , psychologist and author says, “A man who is interested in you will always maintain eye contact and lean a bit forward towards you, when talking. He will keep his phone aside and if he is really interested, his eyes will not wander.“

Here are a few signs that you can look out for to translate what he is actually saying non-verbally .






Ladies Tie

LADIES, IT'S TIME TO `TIE' IT UP 
 


The tie, often considered to be a mark of men's formal wear, now seems to have a place Here's how you can wear your tie: Be it plain or printed, use a tie to jazz up your western outfits. Team up a pair of jeans and a plain shirt with a loosely tied snazzy tie.For the school girl look, pair up a plain, or polka dotted tie, with a striped or checked shirt and a short or knee-length skirt. If you are feeling adventurous, add a sleevless blazer to the look.
If you are feeling fearless, go for the punk rock look by wearing ties that feature some quirky detailing. Add plenty of chains to enhance the effect.

For Free financial planning booklet

What is stress testing for banks?



 

Swatantra Kumar answers: Recently, several European banks were in the news for failing stress tests. A stress test for banks is a simulated test of their strengths, done to find out if these banks can withstand sudden and unfavourable economic and market conditions, when the need arises.These tests also reveal weak spots in some banks when the going is still good and a course correction is forced on those banks to address the weak spots. Stress tests gained in importance after the 2008 global financial crisis importance after the 2008 global financial crisis that wiped out several banks around the world, or forced some to merge with stronger banks. Often, such stress tests are done by the banking sector regulators at a regular intervals. 

Send in your suggestions, queries to investor.swatantra@gmail.com;  

for a free financial planning booklet, please SMS `EDU' to 5676756 

Mutual Fund investments are subject to market risks, read all scheme related documents carefully





MFs' online tools can tell how much to save



MFs' online tools can tell how much to save


Individuals as well as corporates can set aside some amount every month to meet periodic outgoes, which are short term in nature. The same could be done for meeting long-term goals as well.Here, we discuss some examples.
As an individual investor, you can use SIPs to accumulate some amount every month to meet your expenses for your family vacation that you aspire to every two years. For example, suppose you put in Rs 10,000 each month through an SIP in an income fund and you get an average annual return of about 10%. So at the end of the two years, when you are ready for your family vacation, you have a corpus of about Rs 2.67 lakh. As a person who is in charge of finances at a small manufacturing unit, you need to pay advance taxes every quarter. Here, you can use an SIP in liquid schemes of good fund houses for your quarterly payments. For example, if you have an advance tax payment outgo of about Rs 3 lakh for the next quarter, you can put in Rs 1 lakh each month in the SIP so that, at the end of the third month, you have a little over Rs 3 lakh. Or you can put in Rs 99,000 in the SIP and have just about Rs 3 lakh.

Here, we are assuming a return of 8% per annum for the liquid fund -a conservative estimate given that in the last one year most liquid funds have given higher than 8% return. Corporates can use this for service tax payments, dividend and employee bonuses, according to financial planners.
One can use SIPs in equity funds for building a long-term corpus for retire ment planning, child's higher education, wedding, etc.

Most fund houses tell their customers to go for SIPs in equity funds for building a large corpus for the future. Here, other than discipline, the compounding impact of investing over several years also kicks in, which ultimately brings in a large sum of money for the investor. Most of the top mutual fund houses have SIP calculators on their websites.Make use of these tools to plan your SIP for each of your life's goals. You can use those calculators to get a good idea about the amount you need to save every month, how much corpus you need for your long-term goals, etc.

Also, since there could be some tax implications relating to these investments through SIPs, may be you can seek some professional help from financial planners, advisers andor tax consultants.


Use SIPs To Invest In A Disciplined Way




Investors can systematically invest in MFs to save for their financial goals
Systematic investment plans (SIPs) are one of those methods of in vesting that are fast gaining in popularity among Indian mutual fund (MF) investors. SIPs are a vehicle to invest through the MF route and are similar to recurring deposits in banks, without the guarantee but with the chance to earn higher returns.In fact, SIPs in various types of MF schemes could be used to meet several life goals. Choices galore
SIPs are mainly differentiated by their periodicity, which could range from daily , weekly, monthly to quarterly . In India, monthly SIPs are the most popular ones. SIPs are also differentiated by the money that is invested: Either a fixed sum is invested at a regular interval, or a fixed portfolio amount is set and a number of units are bought to achieve that set portfolio amount.Rupee Cost Averaging: In the first case, irrespective of the market level, the investor would invest a fixed sum of money . So if the market is up and the MF unit's net asset value (NAV) is at a high, he she will get less number of units. On the other hand, if the market is low and the NAV is also low, heshe will get more number of units for the same amount of money that is prefixed. This is called the rupee cost averaging (RCA) method of investing.
Suppose you want invest Rs 1,000 in a particular scheme and the current NAV is Rs 10.So you get 100 units. Now suppose if the market goes down and the NAV of the scheme the next month falls to Rs 9.75, you would get 102.56 units of the scheme. That is, you will get more units of the same scheme.And when you consider your total investment of Rs 2,000 over two months, your average cost of 202.56 units is Rs 9.87.Value Cost Averaging: The second variant, which is not exactly SIP but also brings in the periodicity of investments, is called the value cost averaging (VCA) method of investing.In VCA, the investor has a prefixed portfolio value and, depending upon the market volatility, buys more or less of the units to reach the value. In this case, let's suppose you want your portfolio value to go up by Rs 1,000 every month. Now you invest Rs 1,000 at the start of your investment period and, at the end of the first month, its value is Rs 1,050. Then at the start of the second month you will invest Rs 950 only, so that your portfolio value becomes Rs 2,000, with the rise for the month being your pre-fixed Rs 1,000.
But “in India, the fixed amount SIP is the more popular mode of investment“, according to Dhiraj Mittal of Prime Capital Services. “Although some of the fund houses are selling the VCA process of investing, that's yet to pick up pace,“ says Mittal.
Advantages of SIP
The regularity of investing through the SIP mode brings in a host of benefits for investors, according to financial planners. SIPs inculcate a disciplined approach to investing.This is more important than the returns generated over the period of investment, they say .
Although financial planners advise their clients not to look at returns on a daily basis, total funds accumulated through the SIP mode are quite huge if such SIPs are continued for a long time. This is mainly due to the magic of compounding in an investment over a long period. For example, a monthly SIP of Rs 5,000 for 20 years can accumulate nearly Rs 75 lakh if the average annual return is 15%. If the rate of return falls to 10%, which is closer to a bank's fixed deposit rate, the total returns are nearly Rs 38 lakh.
An SIP for every goal
In India, most investors go for SIPs in equity schemes. However, SIPs could be used in all types of funds -from equity to debt to liquid, say financial advisers and planners. “SIP is the mode of entry into the MF investing mode. You can use it for any type of fund to reach any kind of financial goal,“ says Mittal. Although most b lieve SIPs could be used only by retail investors to meet their life goals, cor porates -small and large -can also use SIPs to meet theirs. “If investors and cor porates have some short-term payments or expenses that are not monthly in nature but periodic, they can also use monthly SIPs to accumu late and pay when the time for payment comes,“ says Mittal. Examples can be school fees, which are not paid every month, and saving for periodic holidays by individual investors.
Corporates, on the other hand, can invest through SIPs to build a corpus for quarterly advance tax and service tax outgo, annual employee bonus and periodic dividend payments, etc. “Here, the underlying scheme is chosen with the final objective in mind and then SIPs are set up accordingly,“ points out Mittal.




Friday, October 24, 2014

Diwali Picks By Way2Wealth

Tata Steel Ltd
Buy  Tata Steel Ltd.  Above 470 Target Rs.  705, Stop Loss Rs. 380 CMP 455
During the historical election rally of May 2014, we witnessed a breakout from ‘Inverse Head & Shoulder’ pattern on the weekly chart of Tata Steel above 435 level. The conjectural target of the pattern was almost 650 but the stock rallied towards 577 and is now back to where it was. Due to its dynamic fundamentals the stock has always been investors favorite and has huge potential in itself to rise again. Technically too the support of 435 is decisive since it’s the value of the neckline of H&S pattern and also its near to the ‘89 – Week EMA’ placed at 420 mark. Thus we advise investors to go long in the counter ONLY above 470 level for the upside target of 705 in the coming 9 – 12 months. The stop loss for the set up should be placed below 380 on closing basis.


Hindustan Petroleum Corporation Ltd.
Buy  Hindustan Petroleum Corporation Ltd.  At 450 Target Rs.  725 , Stop Loss Rs. 340 CMP 515
With the fundamental’s aspect in case of government deregulating the diesel prices earnings OMCs including Hind Petro can grow in a compounded manner. Technically, the stock has been moving north since more than a year and is in strong bull phase. Recently the stock gave a breakout above 445 level and registered another all time high of 521 which resulted in positive crossovers of momentum oscillators in long term quarterly chart. This indicates that in the longer run, in case of favorable conditions the stock has a potential to rise towards the breakout target of 700 and above.
Thus we advise investors to accumulate the stock ONLY on dips to 450 for the upside target of 725 in the coming 9 – 12 months. The stop loss for the set up should be placed below 340 on closing basis.


Bharat Heavy Electricals Ltd.
Buy  Bharat Heavy Electricals Ltd.   Above 233 Target Rs.  335 , Stop Loss Rs. 190 CMP 225
In the past one year the stock has travelled a huge distance from a double digit number to a high of 289 and is now in a consolidation phase. As shown in the weekly chart, recently the stock recovered sharply from the lows of 194 which was exactly the 50% Fibonacci retracement of the entire rally from 96.50 to 289.66. In addition, a sustainable move above 233 will confirm the beginning of a new impulse on the higher side. Further, a close above 270 levels on weekly basis will result in a bullish inverse H&S pattern (Line chart). Due to the above mentioned technical evidences we advise investors to go long in BHEL above 233 for the upside target of 335 in the coming 9 – 12 months. The stop loss for the trade set up should be placed below 190 on closing basis.


NTPC Ltd
Buy  NTPC Ltd.  50% Above 145 OR 50% Above 166 Target Rs. 210 , Stop Loss Rs. 120 CMP 141
It is evident from the weekly chart that after a rally from the lows of 110 towards the peak of 166 Ntpc corrected sharply. Meanwhile, during this process the stock broke out from a ‘Downward Sloping Channel’ above 140 levels to meet the expected target of 185 and above. Unfortunately, profit booking forced the counter to shed most of its gain and at this juncture NTPC is back to those breakout levels. It can be seen that recently the stock rebounded from 131 level which is also the precise 61.8% Fibonacci retracement of the entire rally. Thus any positive move from here would be a sign of instigation of another leg of up move. In addition, a move above the recent peak of 166 will confirm inverse H&S on higher degree charts. Therefore we advise investors to buy partial quantity in NTPC above 145 and remaining above 166 level for the upside target of 210 in the coming 9 – 12 months. The stop loss for the trade set up should be placed below 120 on closing basis.


LIC Housing Finance Ltd.
Buy  LIC Housing Finance Ltd. At  340 – 300 Target Rs. 450 , Stop Loss Rs. 120 CMP 275
The stock was trading in the band of 150 – 300 since October 2010. Recently the stock ripped off the resistance zone pegged at 300 levels and shot up to 347 levels. Now the overall projected price target according to the chart pattern is around 450 and higher levels. In addition, few day’s back we also witnessed a breakout on the daily chart which confirms a complex ‘Inverse Head & Shoulder’ pattern. Therefore due to the above mentioned technical evidences we advise investors to go long in the counter in the range of 340 – 300 for an upside target of 450 in the coming 9 – 12 months. The stop loss for the trade set up should be placed below 275 on closing basis.


Chennai Petroleum Corporation Ltd
Buy  Chennai Petroleum Corporation Ltd. Above 114 Target Rs. 175 , Stop Loss Rs. 83 CMP 103
Recently the stock has confirmed ‘Higher Highs and Higher Lows’ on the monthly chart which signals change of medium to long term trend. In addition, we observed a breakout from the falling trend line on the monthly chart with sudden spikes in volumes. Now the immediate resistance for the counter is placed at 114 level. A sustainable move above the same will result in a breakout from ‘Bullish Flag’ pattern along with the positive crossovers of ‘5 & 20 months EMA’. This might result in a very strong upside in the coming months. The placement of momentum oscillators in the weekly and monthly charts depicts that the counter has been keenly waiting since long time for some fresh trigger (breakout from 114 could be the one) to show an astonishing move on the upside. Therefore we advise investors to go long in the counter above 114 for an upside target of 175 in the coming 12 – 18 months. The stop loss for the trade set up should be placed below 83 on closing basis.


Reliance Capital Ltd.
Buy  Reliance Capital Ltd. At 460 – 420  Target Rs. 650 – 720,  Stop Loss Rs. 350  CMP 460
In the marvelous month of May 2014, the counter added almost 100% returns in its kitty since it surged from 330 level to register an new 52 – Week high of 659. The fall after that too was sharper as profit booking at higher levels forced the stock to nose dive towards the immediate low of 432. The correction got halted near 432 mark since it was the value of 89 – EMA as shown in the chart and also the value of 61.8% Fibonacci retracement level of the entire rise from 300 – 659. Similarly the price pattern on monthly chart indicates that the corrective move seems to be over all stock is likely to resume the recent bullish impulse. Therefore we advise investors to go long in the counter between 460 – 420 levels for an upside target of 650 - 720 in the coming 6 – 9 months with a stop loss below 350 on closing basis.


Rural Electrification Corporation Ltd.
Buy  Rural Electrification Corporation Ltd.  At 265 – 235  Target Rs. 345 , Stop Loss Rs. 204  CMP 265
As shown in the chart, it can be concluded that after a breakout from 250 mark the stock saw significant upside towards 380 level. Later on similar to other stocks profit booking at higher levels forced RECLTD to correct sharply and retest the level of 235. Now , the support zone of 245 – 230 is of great importance for the counter as the range coincides with the values of ‘89 – Week EMA’, ‘20 – Month EMA’ and 61.8% retracement level of the entire rally from 159 to 380 levels. At this juncture, the stock is trading well above this support zone and it seems to be preparing itself for a fresh up move. Therefore we advise investors to go long in the counter between 265 – 235 levels for an upside target of 345 in the coming 9 – 12 months with a stop loss below 204 on closing basis.


Bank of India
Buy  Bank of India   At 260 – 190  Target Rs. 350 – 400 ,Stop Loss Rs. 165  CMP 259
Bank India pierced the primary down trend resistance line at 270 levels in the month of May 2014 which confirmed the trend reversal from down to up. Now prices have retested the same line which has turned in to the support at 230 levels. This is offering a favorable trade set up for the bulls. We expect prices to rise up from current levels and surpass the previous swing high of 357 above which stock can escalate up to 475 levels. Slide below 210 will negate our bearish view. MACD is well balanced in the buy mode and is on the verge of entering the bullish territory which will further add the fuel to bullish momentum. Therefore we advise investors to go long in the counter between 260 – 190 levels for an upside target of 350 - 400 in the coming 12– 18 months with a stop loss below 165 on closing basis.


Bharti Airtel Ltd.
Buy  Bharti Airtel Ltd.   At 400 – 350  Target Rs. 600 ,  Stop Loss Rs. 280 CMP 400
The stock after making a life time high of 560 in October 2007 entered in to a correction phase and made a low of 213 in October 2012 which is also a 61.8% retracement of previous rise. In July 2014, prices have penetrated the primary down trend line at 347. This has confirmed that prices are out from the correction phase and new impulse is likely to unfold which can pull the stock to a new life time high of 650. Momentum indicator MACD is well balanced in the buy mode and has entered the bullish zone along with the break out, double bottom chart pattern is also visible. Traders can initiate longs around 375 with 305 as stop loss. Therefore we advise investors to go long in the counter around 400 – 350 for an upside target of 600 in the coming 12 – 18 months with a stop loss below 280 on closing basis.


Wockhardt Ltd.
Buy  Wockhardt Ltd.   50% Above 750 OR  50% Above 890  Target Rs. 1250 , Stop Loss Rs. 625 CMP 745
After a very long time the stock has started trading in ‘Higher Top Higher Bottom’ formation on the monthly chart which indicates sheer strength. In addition, as shown in the weekly chart recently we witnessed a ‘Cup and Handle’ breakout in the counter above 777 mark and the stock rallied till 887 level after that. Right now the stock is back to the zone of 750 and the pattern’s target was 960 and above. In addition, on the longer run a breakout from 890 level can result in a huge upside in the counter which can pull it in 4 digits. Therefore we advise investors to buy 50% positions in the counter near 740 level and add 50% more above 890 level for an upside target of 1250 in the coming 12 – 18 months with a stop loss below 625 on closing basis.


Top Picks

Diwali Fundamental &Technical Picks By Kotak Securities Ltd


FUNDAMENTAL CALL
Buy Infosys Technologies Ltd For Target Rs.4191.00 CMP: Rs.3935
Buy Larsen & Toubro Ltd For Target Rs.1721.00 CMP: Rs.1446
Buy Maruti Suzuki Ltd For Target Rs.3404.00 CMP: Rs.2979
Buy Grasim Industries Ltd For Target Rs.4163.00 CMP: Rs.3408
Buy Kansai Nerolac Paints Ltd For Target Rs.2250.00 CMP: Rs.1858
Buy Engineers India Ltd For Target Rs.315.00 CMP: Rs.238
Buy Allcargo Logistics Ltd For Target Rs.295.00 CMP: Rs.243
Buy Geometric Ltd For Target Rs.167.00 CMP: Rs.138
Buy Zee Entertainment Enterprises Ltd For Target Rs.332.00 CMP: Rs.319

TECHNICAL CALL
Buy Cipla Ltd
Buy  Hindustan Petroleum Corporation Ltd
Buy Infosys Technology Ltd
Buy Larsen & Toubro Ltd
Buy Reliance Communication Ltd

FUNDAMENTAL STOCK PICKS
*  Infosys Technologies Ltd
Buy Infosys Technologies Ltd For Target Rs.4191.00 CMP: Rs.3935
We have been positive on the long-term demand prospects for quite some time. With the developed economies (especially US) stabilizing, we do expect the demand scenario to improve over the next few quarters.
The margins for Infosys seem to be improving ahead of our expectations.
The new strategy should allow Infosys to improve growth rates over the long term with sustained margins.

*  Larsen & Toubro Ltd
Buy Larsen & Toubro Ltd For Target Rs.1721.00 CMP: Rs.1446
Diversified play on the Indian infrastructure and Industrial sector.
Order backlog of Rs. 1.65trn remains strong providing visibility of 34 months of trailing four quarter revenue.
The company has given guidance of 20% growth in order intake in FY14. We expect stock to respond favourably to any reforms moves to address the issues that have plagued the power sector.

*  Maruti Suzuki Ltd
Buy Maruti Suzuki Ltd For Target Rs.3404.00 CMP: Rs.2979
In FY15, we expect the company to report volume growth led by new products and expected improved demand scenario. We expect MSIL to launch 2-3 new models in FY15.
Management expects double digit volume growth for the company in FY15 in the domestic market. In exports, management guided for flat volume growth in FY15.
We expect MSIL's EBITDA margin to improve in FY15 and FY16. MSIL has lowered its import content from peak of around 25-26% (2-3 years back) to 16% by end FY14. Company plans to further reduce it to 12-13% over the course of next few years.

*  Grasim Industries Ltd
Buy Grasim Industries Ltd For Target Rs.4163.00 CMP: Rs.3408
VSF division performance remained weak till Q1FY15 but demand environment is improving slightly. Prices have remained stable during past two months.
Capacity expansion in VSF and chemical division to translate into increased volumes during FY15 and FY16.
Cement division volumes are also likely to increase on demand improvement, capacity expansion, higher dispatch from JCCL plants.

*  Kansai Nerolac Paints Ltd
Buy Kansai Nerolac Paints Ltd For Target Rs.2250.00 CMP: Rs.1858
KNPL is the market leader in the Industrial Paint Segment with 42% market share, with automotive segment contributing 75% of the industrial segment revenues.
We expect revival in auto sales and capex cycle from here We estimate margins of the company to improve over FY14 to FY16E by 70 bps. The company has no major near term capex.

*  Engineers India Ltd
Buy Engineers India Ltd For Target Rs.315.00 CMP: Rs.238
Engineers India enjoys a healthy market share in the Hydrocarbon consultancy segment. It enjoys prolific relationship with few of the major oil & gas companies like HPCL, BPCL, ONGC and IOC.
Company is well poised to benefit from recovery in the infrastructure spending in the hydrocarbon sector.
We believe that in future, company shall inevitably benefit from MoPNG huge target of nearly Rs 1.2 trillion envisaged for various projects in XII five year plan.
Company has been observing pick up in order inflows/revenue booking in consultancy business space which enjoys healthy margins.

*  Allcargo Logistics Ltd
Buy Allcargo Logistics Ltd For Target Rs.295.00 CMP: Rs.243
Allcargo has a strong presence in the MTO business through wide network of ECU Line.
It also has a strong hold on domestic MTO business and continues to perform strongly in the MTO segment despite sluggish container shipping market
We estimate the MTO segment to grow at ~24% in FY15 and ~7% in FYY16 Strong relationships will help the company to report stable volumes in the CFS segment in FY15E and FY16E.at around 200,000 TEUs per annum

*  Geometric Ltd
Buy Geometric Ltd For Target Rs.167.00 CMP: Rs.138
The scale-down in the large account is complete and should not impact FY15 revenues.
Also, the management has undertaken several restructuring initiatives to improve growth, bring in predictability as well as sustain margins.
These initiatives are expected to lead to improved revenue growth over the next few quarters. The order booking over past three quarters and the strong pipe-line make us optimistic on future growth prospects.

*  Zee Entertainment Enterprises Ltd
Buy Zee Entertainment Enterprises Ltd For Target Rs.332.00 CMP: Rs.319
Amongst most exposed broadcasting plays to ride DAS: Zee Entertainment has over 30 channels that bring strong bargaining power to the company. As such, the company is well-set to benefit from the roll-out of DAS over the next few years.
New channels to improve company’s positioning, augur well for long-term valuations
Strong balance sheet enables the company to react strongly to competitive strain: The entertainment space could see significant competitive strain, and we believe that broadcasters with strong balance sheets are better positioned.
Ratings strong, Zee well – positioned to benefit from uptick in advertising

TECHNICAL STOCK PICKS
*  Cipla Ltd
Buy Cipla Ltd
The stock is out of running rising triangle, which is the most bullish pattern for any stock. Since mid of 2006 the stock was into given formation between the range of 150 and 450 but in the year 2014 after almost a eight years the stock has broken the pattern on upward side and strong buying has emerged. We are of the view that it should quote at 750 to 800 on the minimum side that too in a short time frame (3-6 months) but in the long run we are expecting stock to double from current levels (of 600) around 1200. Buy at current and add more between 530/520 with a stop loss at 490 on a closing basis.



*  Hindustan Petroleum Corporation Ltd
Buy  Hindustan Petroleum Corporation Ltd
Since 2003 to till date the stock is range between 160 and 540. Current up move that has started since August 2013 is encouraging and it is in impulse/trending mode. We are of the view that in the current run up it would not be difficult for it to break 540, which is a consolidation of last 11 years. Such type of formations works well and current news flow is extremely positive for it. Technically, we are expecting 660 as a next major hurdle for it but finally it should quote at 900 in next 12 to 18 months of time. Buy at current levels 500/490 add more at 420/430 with a final stop loss at 380 on a closing basis.



*  Infosys Technology Ltd
Buy Infosys Technology Ltd
It was highly unexpected that the stock will cross its life time highest level 3850 in a time span of five months that too in a highly competitive environment. Based on time and price recovery we are of the view that it is heading for the target of 5000 in next 12 to 15 months of time but later on it may even hit the level of 7500 approximately in next 3 years of time. Buy between 3900/3850 add more between 3780/3760 with a stop loss at 3700 on a closing basis.



*  Larsen & Toubro Ltd
Buy Larsen & Toubro Ltd
After the decisive break out at 1380/1400 it jumped to 1775 in the month of June 2014. However, it failed to sustain those gains on the back of weak IIP data and delayed in rate cut announcement from the RBI. We are of the view that it is out of continuation triangle after crossing 1380 and currently it is in throw back mode. At present the risk reward ratio is extremely favorable for investors as well as for contra traders. Buy between 1350/1400 add more between 1250/1230 with a stop loss at 1200 for the target 1660 and 1770. Once the stock starts sustaining above 1780 it should move to 2200 or 2500 in the long run.



*  Reliance Communication Ltd
Buy Reliance Communication Ltd
The stock is range bound since May 2009 between the range of 670 and 1150. Technically, the level of 900/870 should act as a major support for it, which is away by just 5% to 6%. The risk reward ratio is favorable for long term investors as it available at 930/920. Buy between 930/920 and add more between 870/850 with a stop loss at 845 on a closing basis for the target 1100 and 1150. In the run it should quote at 1400 once it will break the level of 1150. Break out should be volume based.

 

Wednesday, October 22, 2014

Haryana got its first BJP chief minister on Tuesday after Manhohar Lal Khattar

RSS man Khattar is Haryana CM



First Punjabi To Head State Govt
Haryana got its first BJP chief minister on Tuesday after Manhohar Lal Khattar -a first-time MLA, a non-Jat and a dedicated RSS pracharak -was chosen to lead the government in Jatland. He is also the first Punjabi chief minister of Haryana after the state was carved out of Punjab in 1966. The Karnal MLA will take oath at Tau Devi Lal stadium in Panchkula on October 26 where Prime Minister Narendra Modi and chief ministers of all BJP-ruled states will be present.
Khattar, 60, is known as a master political strategist but has no experience of governance. This is one of his many similarities with Modi, who too had never fought an election until he was made Gujarat chief minister in 2001.
Khattar's name was en dorsed by Modi himself, but that didn't ensure a smooth ride at the BJP legislative party meeting at the UT guesthouse in Chandigarh.
At least five MLAs, including a woman legislator, said that the chief minister should be from south Haryana.
They wanted Gurgaon MP Rao Inderjit Singh to get the job. Sources said around half a dozen MLAs had met in Delhi on Monday in support of Singh.
At Tuesday's meeting, central leaders said Singh was ineligible as he was already Union minister. The MLAs then wanted the party to appoint state BJP chief Ram Bilas Sharma as chief minister but even that proposal was shot down. Then Sharma proposed Khattar's name, which was endorsed by Captain Ab himanyu, Om Prakash Dhankhar and Anil Vij -all of whom were chief ministerial aspirants.




Top ten share market stocks which can give you upto 98% return by next Diwali

We have collated a list of ten trading ideas, from different experts, which can give up to 98% return in the next 12 months or by next Diwali:


 Analyst: Rahul Shah, Vice President -Equity Advisory Group, Motilal Oswal Securities

DCB: Target price set at Rs 110
DCB's new management restructured its balance sheet, improved underwriting standards with more focus on secured loans and other stringent criteria for loan approvals. NPA has showed steady improvement over FY10-14, with GNPA falling from 8.8% in FY09 to 1.7% in FY14.
DCB's current valuations of 1.7x FY15E P/ABV and 11x FY15E P/E do not reflect the bank's ability to scale up its redefined business model. We attach a fair P/ABV multiple of 2.3x FY15E, a 25% premium to comparable peers (small to medium sized banks) owing to higher advances growth, superior NIM, improving asset quality, robust earnings growth and improvement in return ratios.

Analyst: Daljeet S Kohli - Head of Research IndiaNivesh Securities

Reliance Industries Ltd: Target price set at Rs 1274
Reliance Industries would be one of the biggest beneficiaries of proposed hike in natural gas price. We believe successful discovery in MJ1 well and exploration in R-Series gas field in KG D6 block would help ramp up the production of natural gas in the next 2-3 years.
Despite a fall in international prices, petrochemicals margin would remain firm in the near term, driven by INR weakness and increase in polymer customs duty. The company's US$4bn pet coke gasification project remains on schedule for implementation by FY16 end, which will likely help in expansion on operating margin of refining business. Further, shale gas and retail business are also showing remarkable growth and likely to be a key revenue and profitability driver going ahead.

Ashiana Housing Ltd: Target price set at Rs 202
Ashiana Housing Ltd (AHL) is a unique asset light developer, with strong focus on pursuing real estate business in Tier II and III cities. Despite its focus on Tier II & III cities, AHL's financial health has not been majorly impacted by the recent economic slowdown.
We expect AHL to report FY16E RoE and RoCE of 35 per cent each. AHL is likely to report 149 per cent top-line CAGR during FY14-16E (to nearly Rs 6.9 bn), on the back of 3 projects entirely getting completed (Tree House, Utsav and Anantara) and some phases of the remaining 7 projects getting completed (Ashiana Town, Rangoli Gardens, Aangan, Gulmohar Gardens, Navrang, Vrinda Gardens, Dwarka and Umang).
We expect AHL to report 192 per cent PAT CAGR during FY14-16E. With substantial chunk of 6.8 mn sq. ft. of ongoing projects reaching revenue recognition threshold, we expect revenue visibility to sharply improve from here on.

Capital First Ltd: Target price set at Rs. 360
CFL has emerged as one of the fastest-growing NBFCs, backed by 1) clear management strategy and expertise in retail segment, 2) increasing focus on retail which is least impacted by slowdown in economy, 3) moving towards less risky segments like mortgage, consumer durables and two wheeler financing, and 4) strong promoter backing of Warburg group.
Further getting out of non-profitable business like securities and commodity broking in the last financial year and focus on core business of financing will be the key positive for the company.
We believe CLF is well placed to move on to the next stage of growth. Going forward, the company aims to focus on improving productivity from existing network. Thus, leveraging the cost to income ratio is likely to result in a healthy bottom-line growth.

Meghmani Organics Ltd: Target price set at Rs.34
Meghmani Organics Ltd, a leading global generic agrochemicals player and one of the largest blue pigments producers in the world, is seeing a significant business turnaround after many years of dismal performance.
With uptick in agrochemical cycle, the following triggers should lead to business turnaround: (1) margin expansion on the back of stabilization of recently commenced facilities, (2) better profitability in absence of incremental capex should lead to commencement of debt repayment, (3) With permissions in place from state-level Pollution Control Board, Meghmani is well positioned to ramp-up operations to peak capacity.
Also, (4) Implementation of stringent pollutions norms in China makes Indian agrochemical and pigments business attractive, and (5) ability to attract new order wins from MNC clients given that all safety and environment certifications are in place.
On account of industry down cycle and levered balance sheet of the company, the Meghmani stock has been trading at lower 1-year forward EV/EBITDA multiple of 3.9x. With revival in business cycle, we have assigned 5.9x EV/EBITDA multiple to arrive at FY16E based price target of Rs 34/share.

Tuesday, October 21, 2014

Make your presentation sizzle

Make your presentation sizzle 

COOL ADD-ONS There’s more to it than just Microsoft Power Point. Bells and whistles can be added to make your slide shows rock. We discuss three fun tools that make it happen

FOR MANY of us, making presentations has become an integral part of the job profile — be it to clients, colleagues or managers. And just as a book is often judged by its cover, we are, more often than not, judged by how we say things. Presentations, these days, involve more than simply running a series of PowerPoint slides. This week, we look at three tools that can help you wow your audience

1. SLIDES
[www.slides.com]
It gives you a layout very similar to a graphic editor but lets you build your own presentations. You can upload your own images and use transition styles very similar to PowerPoint, and add slides in multiple directions so you can show them depending on the preference of your audiences. You can also add complex web code that will let you access a database or a separate app.
It is just what a techie would want, thanks to its open-ended interface.
You cannot search for web images or insert a video with a single click but if your presentation relies on live data coming from another database, the web page with a video can be embedded. The app is available for free and makes all your presentations public. There are also paid plans, starting at 4,320 per annum ($72). Slides can be cur rently accessed via a browser and you can export a presentation only in t he paid plan.

2. HAIKU DECK [www.haikudeck.com]
You can download this iPad application absolutely free of cost or sign up for a free account using your web browser. There are six different presentation templates -- choose one, and you can add or craft your slides. Adding pictures is even simpler. You can either upload a picture of your choice or use a built-in search function to get images from across the web that can be used in your presentations. Lay out the text, make graphs, add your slide notes and you are good to go. The app allows you to use large font sizes. What you cannot do is add videos to your slides.
In case you have the iPhone and want to control a presentation running off your iPad, the app lets you do the same as well. Do not have the iPad or don’t want to hook it up? You can share your presentation on social media sites, email the link to your colleagues, or even download it as a PPT or a PDF File, using the Haiku Deck.
The presentations are stored on the cloud at the Haiku Deck server, which enables you to build your presentation from various devices.

3. PREZI
[www.prezi.com]
This i s also available for iPhones, iPads and the Web and your presentations are stored on the cloud. This does a little more than Haiku Deck. Once you have set up your account, you have to choose between the “free” account where all your presentations are available for the public and a “basic” account that is free for the first 30 days. It then costs 3,540 per annum ($59.40) for the basic to 9,540 ($159) for the “pro” version. There are even more versions for large teams, which also lets you make your presentations private.
Once the account is set-up you can choose from various templates or start with a blank presentation.
Prezi also works in a zoom in, zoom out way. Each of your slides is a circle that is connected to the central point. When you share an idea and start presenting, it comes up in a unique way on the screen. You can search for images from the web or upload your own, and add videos, sounds, music, as well as other symbols and arrows to design your presentation.
In fact, the video actually comes in as a link to a YouTube video, and your presentation is always served from the cloud. Prezi files can be downloaded as PDFs and you can also share the link of your presentation on social media.

VERDICT
The Microsoft PowerPoint on a Windows PC and the Apple Keynote on a Mac and iPad are still the big daddies of presentation-making. There is also Google Docs that one can use, but there’s no harm to add some bit of colour to your presentation. So the next time you are looking to do something unconventional, use one of these tools to liven up your work.

The Fitness and wearable bands

Battle of the fitness bands
Battle of the fitness bands
Battle of the fitness bands
Battle of the fitness bands
Battle of the fitness bands
Battle of the fitness bands
Battle of the fitness bands
Battle of the fitness bands

The Fitness and wearable band euphoria is getting stronger every day. Despite news about waning interest and the fact that a lot of people stop using one after six months, the number of people who are buying and strapping them on is on an upswing.

And surprisingly it’s here in India that a serious demand is being felt. I have a crude but very accurate system to gauge what category of products are experiencing a definitive uptick.

It’s the number of people who ask me “which one to buy” whenever I’m out in a public place. (To all those asking – yes, most of my life is spent answering questions from people I meet  about which new device to buy. No, it’s not a sad life!).

So right after ‘aaj-kal kaunsa mobile aacha hai?’ and ‘TV kaunse brand ka kharidna chahiye?’, the next hot category being asked about is fitness bands. Previously the problem in answering this burning hot question was the unavailability of these bands in India.

Fitbit started it all off but never made it to Indian shores. The Nike Fuelband followed and is now all dead and buried, but never popped up here in its short life.
The Jawbone Up is available in pretty much every country in the world except here (there is poetic justice here as this is one device that has turned out to be quite a disaster). The Misfit Shine is still a ‘foreign trip par hi khareed sakte ho’ device and there is a plethora of others that haven’t been officially launched in India.

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Move it, Move it: If Garmin Vivo senses no activity from you, the Move bar starts to add up. Your goal is to keep the
Move bar off the screen, by moving

There are quite a few no-name Chinese knock-offs but I always ask people to steer clear  of them as a fitness band is about its ecosystem, the app and software, as much as it is about the band itself.

Thus there weren’t any real options for people who wanted to get onto the ‘quantified self’ bandwagon by walking into a store and buying one locally. That has changed with a vengeance as multiple companies have come muscling into our country. So which one should you buy and why?

Garmin Vivo Fit
Garmin is mainly known for its GPS devices and thus the first impression is that this would be a band that can do most things to track your fitness, plus also track your walk and run on a map.

Unfortunately, it doesn’t do that (for that you’ll have to invest into a Garmin Forerunner watch). But it has quite a few other tricks up its wrist strap. Speaking of which, the unit is separate from its plastic strap (a slightly cheap affair) and there are some extra colours available.

The Vivo can track steps, distance, calories, sleep and can calculate a few other things as well. This one has a ‘Move’ bar right on top. If it senses no activity from you, the Move bar in red starts to add up.


Running right: GOQii sends your data to a human coach, who analyses it and gives you real time feedback
our goal is to keep the Move bar off the screen, by, well, moving. And it works very well (you will find yourself doing some office jigs and dances to get rid of that red line).

The second big deal is its battery life which is about one full year as it uses button cells. The problems stem from the fact that the screen has no backlighting and that the synch to the connect app can be a little iffy. The Vivo is priced at around Rs.9,000 but you can pick it up cheaper online. 

GOQii
I’ve reviewed the GOQii before and thus won’t get into too much detail. This one can also track steps, distance, calories and sleep and its add on USPs are tracking active minutes per day (when you really were working out hard) and Karma points (earn points and give them away to a worthy cause).

But the game-changing shift is what this device does with all that activity data that it tracks. This data goes straight to a real human personal coach allocated to you who analyses it and gives you real time feedback, advise and directions.

The GOQii coaching system is very robust and professional and can truly motivate and keep you on track. The GOQii device is free and you only pay for the coaching system and there is a special deal on Amazon at Rs.3,999 for three months. 

Mymo
This is a new entry into the the fitness world and comes straight to India after its launch in the Middle East. Its a clip-on device with a six-month battery life, has no screen or visual data that you can track on it (it synchs with an app on your phone for you to see that).

The Mymo is very small and unobtrusive and can track all the metrics you need. It works with Tupelolife, a healthcare ecosystem built around the app. The Mymo is currently available for Rs.3,375 in India.
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Right on track: Mymo comes with a six month battery life and no screen. It's very small and unobtrusive and tracks all the metrics you need
So which one then?
I’m going to take the Mymo out of the equation right now as it’s a very recent entry and needs time to get things right and develop the ecosystem well. That leaves the Vivo and the GOQii.

The choice is fairly simple. If you believe you are disciplined enough to stick to a fitness regime on your own and can track and analyse all the data being thrown at you – then the Vivo is a very good device.

But if you fall into the category where you fall off your fitness bandwagon regularly, have been struggling to go to the gym every morning, struggling with weight issues and are quite confused as to what to do with all that awesome data about your own body – then GOQii and its personal coach is a life-saver.

I hope that answers the question ke ‘India mein kaunsa fitness band aacha hai?’