SMALL INVESTORS FORUM

Major Stock/Sector News in Focus: # RBI allowed banks to fund cos. step-down units abroad, revised rules for opening branches in rural areas # Avanti Feeds Invests 846m rupees into Avanti Frozen Foods # Aurobindo Pharma gets tentative approval for Bivalirudin # Canara Bank raises 15b rupees selling tier-II bonds # Clariant Chemicals competition Commission approves co.’s plan to buy part of # Vivimed Labs personal-care portfolio # Corporation Bank allots 28.2m shrs to LIC at 50.78 rupees each # FSL makes 3rd qtrly repayment of $11.3m on debt # Gammon India lenders close to selling stake in co. units: ET # HDFC gets 570m-rupee profit from sale of investments # IDBI Bank gets India approval to raise 37.7b rupees # Indian Oil cuts gasoline, diesel prices; signs pact w/ Petronet LNG (PLNG) for additional supply of 0.3 MMTPA of RLNG # IL&FS Transportation gets Madhya Pradesh Road Development’s provisional certificate for road completion # JMC Projects to offer 2 right

🔵 Here is a compilation of stock recommendations for calendar year 2016 from top brokerage and research houses: 👉 BNP Paribas HDFC Bank, Infosys 👉 Credit Suisse Overweight on consumption (best play on broad-based pick-up; pay commission), and underweight financials (asset quality). Likely outperformers: Tech Mahindra, HUL, UltraTech Cement, Tata Motors. Recommend shedding positions in SBI and Bharti Airtel. 👉 Nomura Remains overweight on India; and the technology, industrials, discretionary and banks and insurance sectors. Maruti Suzuki, Axis Bank, Container Corporation of India, HCL Tech among top picks. 👉 Edelweiss Research Dalmia Bharat, Jamna Auto Industries, Natco Pharma, Siyaram Silk Mills, United Spirits 👉 Religare Retail Research Amara Raja Batteries, Britannia Industries, Century Plyboards (India), Somany Ceramics 👉 Motilal Oswal Securities SBI, ICICI BANK, BPCL, Interglobe Aviation (Indigo), Bharat Forge, Ashok Leyland, DHFL, Inox Wind, Vinati Organics an

 Company buzz Business Standard Ø  Now, single foreign entity may get to hold 15% in Indian bourses Ø  Global economy, pvt investment main challenges: FM Ø  Govt approves Amended TUF Scheme, to create jobs Ø  Centre clears Rs 12,000 cr Coastal road project in Mumbai Ø  Windfall awaits oil cos as under-recoveries to dip Ø  Govt fears Rs 50K cr shortfall in divestment proceeds Ø  Demand for big oil ships up on OPEC output limit ban Ø  RCom, Aircel to pare debt to Rs 20,000 cr ahead of merger Ø  Government calls off fourth round of coal block auctions Ø  Civil aviation policy to come for cabinet nod in January Ø  IT dept publishes names of 18 defaulters owing over Rs 1,100 crore Ø  Sebi to seek report from commexes and traders on IT raids Ø  Italian tax authorities fine Apple $347 mn for fraud Ø  Prakash Steelage to sell 12.47% more stake in JV to Tubacex of Spain Business Line Mint Ø  Balco unions petition PMO to bail out struggling aluminium industry Ø  Tata Inte

Market Buzz Business Standard Ø  Vodafone in talks to buy Tikona's 4G spectrum Ø  'FDI flow into India jumped by 35% in last 17 mths' Ø  Housing in stake sale talks with Snapdeal, News Corp; deal may be inked by Q2 of 2016 Ø  Saudi economic plan shows it is ready for cheap oil Ø  $38 bn state funds misused: China's chief auditor Ø  United Spirits' net worth more than halves; seeks refuge under BIFR Ø  Friday trading needed for Israel to join MSCI Europe index Ø  Global sovereign, pension funds to invest in NIIF: Jaitley Ø  Centre drafts imported coal-based UMPP guidelines Ø  Standard Life gets FIPB nod to raise stake in HDFC Life to 35% Ø  CARE surges on MoU with Japanese credit rating agency Ø  Airtel adds 4G spectrum in MP; acquires 74% stake in Augere Ø  BPTP promoters to buy back stake from CPI, JPMorgan for Rs 693 cr Business Line Mint Ø  Budget to project pro-reform image even as GST roll-out is in limbo Ø  Apex court upholds Kerala liquo

Thoughts: Take a pause!!  The Future Belongs To Those Who Prepare For It Today…  So Let’s Learn from Yesterday, Live for Today,  Hope for Tomorrow. So It’s a time when some may pause to look back and cherish the happy moments while others will pause to look forward and hope the New Year 2016 brings good tidings for our health, wealth and family.  After some jingle for last couple of sessions, the Indian equity market is likely to start on a tad flat to negative note  As the last expiry of the calendar year takes place this week on Thursday, a lot has happened in terms of sentiment especially in the last couple of weeks.  With most investors likely to be on a holiday from Friday for the last week of calendar year, the volumes will remain understandably lower but choppiness could increase especially towards the end of the year.   Most Japanese stocks gained after the Topix index capped its longest streak of weekly losses in almost two years. U.S. equity-index futures were lit

*SUN PHARMA UNIT RAISED 10B RUPEES VIA PRIVATE PLACEMENT *SUN PHARMA UNIT RAISED 10B RUPEES VIA NON-CONV. DEBENTURES *STATE BANK OF INDIA ISSUED 40,000 TIER-LL BONDS *RELIANCE INFRA SAID TO ANNOUNCE CEMENT DEAL BY YEAR END *RELIANCE INFRA SAID TO SEEK 50B RUPEE VALUE FOR CEMENT PLANTS *RELIANCE INFRA SAYS IT HAS SHORTLISTED 7 POTENTIAL BUYERS *THOMAS COOK INDIA NAMES MADHAVAN MENON AS CHAIRMAN, MD *RIL'S 2 CBM BLOCKS HOLD 103.36 BCM GAS RESERVES: PRADHAN *RIL SPENT $129M IN EXPLORING CBM IN MADHYA PRADESH: PRADHAN *RIL YET TO START COMMERCIAL OUTPUT OF CBM IN MADHYA PRADESH *STRIDES TO ALLOT 8.6M SHRS AT INR1,278 EACH IN QIP *MAHARASHTRA GOVT TO ABOLISH KOLHAPUR TOLL OPERATED BY IRB: BS

Time to Think!!💭💭 Are India Mid Caps and Small Caps Overheated?? Would Money may Flow to Sensex Stocks?? ✔ Analysed movements in India's three bellwether indexes, the BSE Sensex, BSE MidCap and BSE SmallCap, since May 12, 2014 (general election results week). till December 18, 2015.  Clearly, while the BSE Sensex has had a dream run since May 2014, it is actually the MidCaps and the SmallCaps which have generated higher returns, as displayed by the performance of the two indexes. 💥 Index Returns b/w 12-5-14 and 18-12-15 BSE Sensex 8.4% BSE MidCap 45.4% BSE SmallCap 51.1% These returns do not include dividends. 💥 Returns at Peak of Index BSE Sensex 26.0% BSE MidCap 54.3% BSE SmallCap 59.0% 🔵 The above table proves that the MidCap and SmallCap have squarely beaten the Sensex, even at their respective peaks. Valuations: BSE Sensex 19.5x BSE MidCap 26.2x BSE SmallCap 62.3x (Source: BSE website) 💥 Clearly, valuations of mid caps and small caps are stretched. The rally i

SEBI action.. SEBI has passed an order against the broker M/s. Kisan Ratilal Choksey Shares and Securities Pvt. Ltd. on 30th November 2015  for inspection carried out by SEBI during the period April 2011 to Sept 2012 (covering 6 Qtrs) for specific area of Settlement of accounts of funds and securities. SEBI has levied the penalty of Rs. 35 Lacs to the said broker for non-compliance of the provisions of non-settlement of accounts of funds and securities. 

Matters Simplified. Basics Explained: What is inflation  Here's what you need to know about one of the most familiar business terms. Inflation is one of the most familiar terms used in the business and finance world. You would have heard central bankers talk about achieving economic stability by altering inflation. Here’s what you must know about inflation. What is inflation? Inflation is the rate of increase in prices of goods and services over a given period of time that could affect the cost of living in a country. If inflation increases, it could reduce your purchasing power and discourage investment and savings. Hence, it’s very important to maintain steady rates of inflation in a country. What creates inflation? Supply and demand of money play a very important role in maintaining inflation rates. A situation of high inflation occurs when the monetary policy is very relaxed. If prices of goods and services increase,purchasing power falls and the value of currency dimin

Corporate News 2 Aurobindo Pharma receives USFDA nod for conjunctivitis drug :  Aurobindo Pharma, a mid-size pharmaceutical company, announced that the company has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market a drug indicated in the treatment of seasonal allergic conjunctivitis. The company said, "Received final approval from the USFDA to manufacture and market Olopatadine Hydrochloride Ophthalmic solution USP, 0.1%. This product is ready for launch." The approved ANDA is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Patanol Ophthalmic solution, 0.1%, of Alcon Laboratories, Inc. According to IMS, the approved product has an estimated market size of USD 235 million for the twelve months ending October 2015. Glenmark Pharma receives USFDA approval for Linezolid tablets :  Glenmark Pharmaceuticals (Glenmark), a manufacturer of generic formulation products and API, has been grant

Corporate News Business Standard Ø  Govt to bring bill for mandatory national minimum wage Ø  Govt fails to attract FDI in Defence, only Rs 56L since last Sept Ø  Softer oil prices boost expectations of better earnings Ø  China's Wanda Group likely to invest US$ 1 billion in Haryana Ø  RBI may revise gold bonds’ pricing mechanism Ø  GAIL extends bidding deadline for $7-bn LNG ships Ø  Rajan went with external committee in policy review Ø  RCom, Aircel in talks to merge wireless biz Ø  Tata Steel may sell UK unit to Greybull Capital Ø  India's Q2 current account deficit narrows to $8.2 bn Ø  Maha Govt mulls 5% increase in ready recknor rates from January 1 Ø  CAG flays govt for unrealistic expenditure estimates Ø  UltraTech mine plan in Chhattisgarh lands in troubled water Ø  ONGC can convert Rs 5,000-cr loan given to OVL into equity Business Line Mint Ø  Call drops: No coercive steps against telcos till Jan 6, says TRAI Ø  Glenmark Pharma gets US regulato

30 IPOs in the pipeline .... 1)      New Delhi Centre for Sight Limited – DRHP filed on 01-Dec-15 2)      GVR Infra Projects – DRHP filed on 20-Nov-15 3)      Mahanagar Gas – DRHP filed on 16-Nov-15 4)      SSIPL Retail – DRHP filed on 23-Oct-15 5)      Equitas Holding – DRHP filed on 20-Oct-15 6)      GVR Infra Projects – DRHP filed on 06-Oct-15 7)      Parag Milk Foods – DRHP filed on 01-Oct-15 8)      Quick Heal Technologies – DRHP filed on 01-Oct-15 9)      Sandhar Technologies – DRHP filed on 01-Oct-15 10)      Maini Precision Products – DRHP filed on 30-Sep-15 11)      G N A Axles – DRHP filed on 29-Sep-15 12)      Larsen & Toubro Infotech – DRHP filed on 29-Sep-15 13)      VLCC Health Care – DRHP filed on 24-Sep-15 14)      Teamlease Services – DRHP filed on 15-Sep-15 15)      Matrimony.com – DRHP filed on 20-Aug-15 16)      Healthcare Global Enterprises – DRHP filed on 29-Jul-15 17)      Bharat Wire Ropes – DRHP filed on 23-Jul-15 18)      Paranjape Schemes (Construction)

Who's driving global growth in 2016? 🇺🇸USA hads growth rate of 2.9% (a $17.2 trillion economy) and shares 22.6% in world Gdp and contributes to 19.8% in world growth. 🇨🇳 China has growth rate of 7.0% ( a $9.3 trillion economy) and shares 12.1% in world Gdp and contributes to 25.3% in world growth. 🇬🇧 UK & EUROzone has growth rate of 2.0% ( a $15.3 trillion economy) and shares 20.80% in world Gdp and contributes to 12.6% in world growth. 🇯🇵 JAPAN has growth rate of 1.7% ( a $5.8 trillion economy) and shares 7.6% in world Gdp and contributes to 4.0% in world growth. 🇮🇳 INDIAN has growth rate of 7.8% ( a $2.4 trillion economy) and has 3.2% in world Gdp and contributes to 7.2% in world growth. *source: worldbank data

Another Satyam in making - L&T L&T was founded in year 1938 by Danish engineers Mr Larsen and Mr Toubro. Now state owned LIC and UTI are majority stakeholders. Likes of Chairman Mr Naik (aged 73) who joined as entry level engineers in 60s are treating L&T as their personal fiefdom. Caution – Big Danger Ahead!! L&T in melting - devil or the deep blue sea - stake sale or post losses. Complete stake sale at Dhamra Port (Rs 2500 crores) to Adani group saved LnT from posting losses in q1-2014. LnT Infra stake sale to Canadian FII (2000 crores) saved LnT from posting losses in q2-2014. LnT Finance not made any money for shareholders in 6-7 yrs, 10% stake sold to Bains, 1300 crores.  Kuttapali Port deal final with Adani. On a look out to sell Rajpura Power plant – cost 9600 crores. Plans to sell 15% stake at LnT Infotech to raise 2k crores.  Threatened to pull out from Hyderabad Metro 16 k crores, LnT opts out of GAIL tender to build LNG carrier, scraps Kachchigarh Gujarat

NSE arm launches indices for Tata, Aditya Birla, Mahindra groups  MUMBAI - National Stock Exchange's subsidiary India Index Services & Products Ltd has launched group specific indices for three corporate groups -Tata Group, Aditya Birla Group, and the Mahindra group.     "The corporate group indices are designed to reflect performance of companies belonging to the respective corporate groups," NSE said in the release.  "These indices are based on full market capitalization method and will include all the companies of the respective groups listed on NSE."     The base value of these indices is 1000 and the base date would be Apr 1, 2005.     The index for Tata Group has been named Nifty Tata Group Index and consists of 25 companies across the 12 sectors. The market capitalization of this index is about 7.5 trln rupees, which is about 7.83% of the total market capitalization of the companies listed on NSE, the release said.     Nifty Aditya Birla Index

RBI introduces Cross Currency Futures and Exchange Traded Cross Currency Option Contracts The Reserve Bank of India has issued guidelines for introduction of cross currency futures and exchange traded cross currency option contracts in the currency pairs of Euro (EUR)-US Dollar (USD), Pound Sterling (GBP)-USD and USD- Japanese Yen (JPY). Further, exchange traded option contracts in the currency pairs of EUR-Indian Rupee (INR), GBP-INR and JPY-INR have also been introduced in addition to the existing USD-INR pair. The cross currency contracts shall enable direct hedging of exposures in foreign currencies and facilitate execution of cross-currency strategies by market participants. The key features of the new contracts are: Market Participants, i.e., residents and foreign portfolio investors, are allowed to take positions in the cross currency contracts without having to establish underlying exposure subject to the position limits as prescribed by the exchanges. Authorised Dealer Ca

National Herald Case: Why Sonia And Rahul Gandhi Need To Be Afraid | Swarajya http://swarajyamag.com/politics/national-herald-case-why-sonia-and-rahul-gandhi-need-to-be-afraid/

HOW KEY SECTORS WILL BE AFFECTED WITH GST ROLLOUT? Will food products become dearer? Will Land and Real estate be kept under GST? Will Service providers be happy with GST? How Manufacturers would be affected? What’s going to be in case of Works Contracts? How Power and Telecommunication sector be adversely affected? What about International Trade? Whether it will be zero rated or taxed?? This article will elaborate us the impact of GST on our Key Sectors / Industries. Let’s go through these specific sectors of Indian Economy and understand how each sector will be affected with the introduction of GST. 1. AGRICULTURE: Presently in India, most of the food items are exempt from CENVAT. Still then, there are some food products, including food grains and cereals, which are covered under State VAT @ 4% in many states. State VAT exemption is limited to only unprocessed or raw food e.g., fresh fruits, vegetables, meat, eggs and coarse grains. As far as Delhi is concerned, no such levy is

27 Major Global Stock Indices -Fallen more then 10% From peak of this Year : “Not Seen Numbers Like These Since 2008” 1. China: down more than 30 percent 2. Saudi Arabia: down 26 percent 3. Germany: down about 13 percent 4. United Kingdom: down close to 12 percent 5. Spain: down 15 percent 6. Brazil: down more than 22 percent (13,000 points overall) 7. Malaysia: down 17 percent 8. Turkey: down 16 percent 9. India: down close to 12 percent 10. Chile: down 11 percent 11. Columbia: down about 30 percent 12. Peru: down more than 40 percent 13. Bulgaria: down more than 20 percent 14. Greece: down more than 30 percent 15. Poland: down about 19 percent 16. Malaysia: down 10 percent 17. Egypt: down 32 percent 18. Indonesia: down 18 percent 19. Canada: down 12 percent 20. Ukraine: down 45 percent 21. Morocco: down 13 percent 22. Ghana: down 17 percent 23. Kenya: down 27 percent 24. Australia: down 13 percent 25. Nigeria: down more than 30 percent 26. Taiwan: down 15 pe