INDIAN Investor wealth soars in 2012

24 DEC, 2012, 03.38PM IST, PTI 

Investor wealth soars 27% to over Rs 67 lakh crore in 2012

MUMBAI: Investor wealth soared by 27 per cent to around Rs 67.7 lakh crore in 2012 with the stock indices gaining nearly 25 per cent on hefty capital inflows and of late a slew of reform measures even as concerns remain over economic growth and rising fiscal deficit. Indian bourses made a dramatic turnaround after a meltdown in 2011, leaving behind strong optimism about a bullish 2013 in hopes of RBI rate cut, hefty capital inflows, a recovery in global economy and excellent earnings growth in the third quarter of 2012-13.
The smart recovery helped investor wealth to soar by over Rs 14.5 lakh crore to Rs 67,78,609 crore on December 21, 2012 against Rs 53,12,875 crore at the end of last year. The Q3 earnings, which are most likely to beat the market pundits, indications of more reforms by the UPA government and hopes of increase in retail participation in quality IPO/FPO and OFS in the near future expected to augment the bullish fervor in 2013, an analyst said.
The BSE sensitive index Sensex posted impressive gains of 3,787 points, or 24.5 per cent, at 19,242 on December 21, 2012, against preceding year-end's close of 15,454.92 points. The Sensex had lost 5,054 points, or over 24 per cent, during 2011. The National Stock Exchange's Nifty also spurted by 1,223 points or 26.5 per cent to 5,847.70 on December 21, 2012 from previous year end's close of 4,624.30. Investors ignored dwindling industrial output, declining exports, ballooning fiscal deficit, overall gloomy economic atmosphere in domestic and international markets amid fear of European debt crisis to spiral over world wide.
Foreign institutional investors (FIIs) made the second largest investment in the Indian capital market in the year under review. As the Sebi data, FIIs pumped in Rs 1,21,652 crore or $23.15 billion this year till December 21. Previously, they had made biggest investments of Rs 1,33,266 crore or $29.36 billion in equities during 2010. Kishor P Ostwal, CMD of CNI Research Ltd said a few big investors made a large profit in the market as selectstocks scored new highs in view of paucity of floating stocks. However, retail investors were not benefitted either in the secondary market IPO market and were seen selling their holdings, as a result the public ownership in the India Inc came down to 6-7 per cent as against a high of 15 per cent 2007, he said. Though the Sensex could not surpass its all-time peak registered in 2008, the sectoral indices like BSE-FMCG, BSE-HC, BSE-CD and BSE-Auto logged their historical highs during the year on hectic buying by foreign funds. Analysts said at the beginning of 2012 investors feared of further slide in view of corruption scams. However, the market surprised everyone by rising almost 1,739 points or 11.25 per cent, largest monthly rise in absolute term in the month of January in any calender year, following hectic buying by Foreign funds. It was also the biggest monthly performance since September 2010 when it had gained by 2,098 points or 11.67 per cent. The rally in the month was driven by strong global cues on hopes of some stabilidation in the Europe and gradual improvement in the US economic data.On domestic front, the government's decision to allow Qualified Foreign Investors (QFI) to invest directly in local equities from January 15, 2012 and signs of more foreign funds inflow also underpinned sentiment. 

The Union Budget, which was delayed this year due to the Assembly polls in five states, presented by thenFinance Minister Pranab Mukherjee on March 16 failed to enthuse the investors and plans to revive theeconomy. The market then turned negative and remained dull for the next few months due to slowdown in GDP growth, worries over macroeconomic conditions due to higher global crude oil prices, as India imports two-third of its oil consumption, rising trade deficit, weakening currency and global uncertainty. Fears that reform process may take back seat after the ruling Congress party suffered a setback in some states in March and cut in China's growth target also weighed on the market sentiment. Revival of monsoon at the fag-end and Moody's retaining stable outlook on India supported the weak stock markets. Moreover, announcement of reform measures such as allowing FDI in multi-brand retail and downsizing the LPG subsidy by the government later pushed the Sensex higher since September.
The Sensex moved in a range of 19,612.18 and 15,358.02 before ending at 19,242.00 on December 21, 2012, displaying a rise or 3,787.08 points or 24.50 per cent. The wide-based S&P CNX Nifty of the NSE also flared up by 1,223.40 points or 26.46 per cent to settle at 5,847.70 on December 21, 2012. On the global front, barring China which ended in the red, rest of the other Asian markets ended firm. European as well as US stocks too exhibited strong trend this year.

http://economictimes.indiatimes.com/markets/stocks/market-news/investor-wealth-soars-27-to-over-rs-67-lakh-crore-in-2012/articleshow/17743024.cms?curpg=2

Empee Distilleries sees better prospects

With new projects, Empee Distilleries sees better prospects

CHENNAI, DEC. 28: 

With Empee Distilleries’ major projects going on stream and a restructure at an advanced stage, the company hopes to do better in the current year as compared with 2011-12, according to its Chairman, M.P. Purushothaman.

Addressing shareholders at the AGM for the 18-month period ended September 30, Purushothaman said a 60-kilolitre-a-day grain-based distillery project in Andhra Pradesh has gone on stream and will reach full production in March. A brewery unit near Chennai started in the current year and Empee Distilleries’ subsidiary, EDL Properties, will launch a Rs 350-crore residential and commercial development. The company has also got the statutory approval to launch a new brand of liquor, El Canso Brandy, in Tamil Nadu. A restructuring that will make the group company, Empee Sugars and Chemicals, a subsidiary of Empee Distilleries will bring the sugar company’s 50 MW power project into its fold and augment revenue.

Shareholders have approved the proposal which is now awaiting court approval, he said. Nisha Purushothaman, Joint Managing Director, told shareholders that the company has had a tough year with product costs, primarily that of Indian Made Foreign Liquor stagnating, while input costs had increased. Nearly 90 per cent of its market is in Tamil Nadu where premium brands of liquor have taken a beating. But the trend is likely to change in the coming year.She said Empee Sugars’ 50-MW cogeneration unit has been converted into an independent power producer and is now a coal-based power project. For the 18-month period the company reported a net profit of Rs 22.80 crore on a total revenue of Rs 1,006.81 crore. During the previous year, the company reported a net profit of Rs 21.20 crore on a total revenue of Rs 594 crore. With the restructure and augmented sources of revenue the company will do better, she said.

http://www.thehindubusinessline.com/companies/with-new-projects-empee-distilleries-sees-better-prospects/article4249467.ece?homepage=true&ref=wl_home

Lloyds Steel - EXPANSION

Miglanis hope to turn around Lloyds Steel

OUR BUREAU

MUMBAI, DEC. 28: 

Weeks after the acquisition of Lloyds Steel, the Miglani family has charted out plans to turnaround the company within one year.

Ultimate Logistics Solutions and Metallurgical Engineering and Equipments, the family-owned companies have invested Rs 647 crore (including the open offer of Rs 77 crore) in Lloyds Steel.

Ankit Miglani, Deputy Managing Director, Uttam Galva Steel, said having infused the requisite capital, the immediate target would be to reduce the cost of fund and increase production to 750,000 tonnes from 500,000 tonnes. “We are also negotiating with banks for Rs 1,500-crore line of credit which will be used for sourcing raw material and meet other operational expenses. Besides, we will bring down cost of debt by refinancing and tying up a long debt of Rs 300 crore,” he said. After enhancing the production, the marketing strategy will be reworked to make the company profitable and double EBITDA to Rs 260 crore within a year, he added.

BOARD RECAST

Apart from rechristening Lloyds Steel as Uttam Value Steels, the board was reconstituted on Friday with the induction of Rajinder Miglani, Ankit Miglani and Rajiv Munjal in place of the erstwhile promoter-directors. Miglanis have acquired 58.35 per cent in Lloyds Steel through preferential allotment and an open offer.

The company has a steelmaking capacity of one million tonnes a year in Maharashtra and has reported losses of Rs 213 crore in last two financial years.

It has a long-term debt of Rs 441 crore and debt-equity ratio of one is to one.

STRATEGY

Uttam Value Steel plans to concentrate on producing high quality steel for specialised application in power, oil and gas and infrastructure sector to enhance its margins.

On backward integration, Miglani said Uttam Galva currently supplies 80 per cent of Lloyds Steel raw materials. Miglanis are open to tapping private equity investment and investment from ArcelorMittal, which currently owns 33.80 per cent in Uttam Galva.

Expressing confidence that the shortage in iron supply will ease, Miglani said the industry has been impacted by the ban on iron ore mining and things will look up as the mining ban cannot be a permanent feature. “Even as global demand is expected to remain low, a revival in India is expected in couple of months. What is more worrying than demand is the fresh capacity that will go on stream in six months time,” he said.

suresh.iyengar@thehindu.co.in

http://www.thehindubusinessline.com/companies/miglanis-hope-to-turn-around-lloyds-steel/article4249477.ece?homepage=true&ref=wl_home

U P Sugar industry - Rs 3,000-cr loss..

UP sugar industry stares at Rs 3,000-cr loss

With the impact of 16% increase in cane prices announced on Friday, stocks of sugar companies also get crushed

Ajay Modi / New Delhi Dec 11, 2012, 00:42 IST

The sugar industry in India’s biggest-producing state, Uttar Pradesh, is staring at a loss of Rs 3,000 crore this season (October-September), after the 16 per cent increase in sugarcane price announced on Friday evening. Stocks of sugar companies like Balrampur Chini and Triveni Engineering got crushed, even as the market ended flat.

In the first year of its tenure, the Samajwadi Party-led state government increased the state advised price ( SAP) of sugarcane by Rs 40 a quintal across varieties. The new price is Rs 280 and Rs 290 a quintal for normal and early varieties, respectively. “In states like Tamil Nadu, Haryana and Punjab, where the system of SAP prevails, the price is much lower. Mills in Haryana and Punjab will pay Rs 240 for sugarcane, while those in Tamil Nadu will pay only Rs 225 a quintal,” said S L Gupta, secretary of the UP Sugar Mills Association.

Gupta said at the new cane price, the cost of sugar production would be Rs 3,500-3,600 per quintal, while the current realisation is ruling around Rs 3,250. “If sugar prices remain at these levels, the UP industry will incur a loss of Rs 3,000 crore in the season on output of eight million tonnes,” he noted.
 

A BITTER PILL
Company	Closing share price on Dec 10 (in Rs)	Change over previous day (%)
Dhampur Sugar	60.00	-6.61
Balrampur Chini	55.40	-9.25
Dwarikesh Sugar	40.15	-4.29
Bajaj Hindusthan	27.55	-1.25
Triveni Engineering	19.95	-5.23
Source: BSE

The industry was all along anticipating a lower increase in the sugarcane price since last year. The Predecessor, Mayawati government, too, had raised prices by Rs 40 per quintal. “Banks are concerned about the impact of this hike. They had been positive on the sector when realisations improved to Rs 3,600 a quintal in September. However, at this sugarcane price, a loss is unavoidable and we will face problems in making sugarcane price payment to farmers. Ideally, the price should have been hiked by Rs 20 per quintal,” said Kishor Shah, director (finance) at Balrampur Chini that owns 10 mills in the state.

The positives of a possible increase in sugar prices have been negated by the Rs 40 rise. According to Icra, UP-based sugar mills will benefit from higher prices in sugar season 2012-13 as well as higher crushing volumes and also higher recovery rates but higher cane costs are likely to substantially offset this positive impact. However, Icra expects upside if the recommendations of the Rangarajan Committee regarding abolition of levy sugar is accepted and/or ethanol prices see a revision.

Interestingly, the UP sugar industry is not looking to legally challenge this rise, as it had been doing often in recent years. “We are not thinking of a legal recourse. We plead with the state government to grant incentives like waiver of Rs 2 purchase tax on every quintal of sugarcane we buy, reducing society commission from Rs 5.10 to Rs 2.10 a quintal and elimination of the three per cent entry tax levied on the sugar produced and consumed within the state,” Gupta said.

BUY INFOSYS - TARGET HIGH !!!

5 reasons why Infosys is the stock to watch out for in 2013

NDTV | Updated On: November 23, 2012 13:44 (IST)

Securities firm Jefferies has said earnings downgrade for Infosys, Indias second largest software services exporter, is coming to an end and it is likely to be the stock to watch out for in 2013.

Here are five facts:

1. Jefferies today increased its target price for Infosys to Rs. 3,000 crore per share, and said it maintains a ‘buy’ recommendation on the stock.
2. According to the investment firm, India’s second largest software services exporter is unlikely to see further earnings downgrades. Infosys reported a 24 per cent year-on-year gain in quarterly profit for the fiscal second quarter ending September. On a sequential basis, net sales rose 2.5 per cent to Rs.9,860 crore, while net profit edged up 3.5 per cent to Rs. 2,369 crore. In the June quarter, Infosys had reported Rs. 9,616 crore in sales and Rs. 2,289 crore in net profit. Analysts said the results were in line with expectations.
3. Brokerage consensus is close to the worst-case scenario, and expectations have halved from Infosys versus a year ago. Last month, Espirito Santo reiterated its ‘buy’ call on the stock post earnings, saying all known ramp downs are largely over and all planned price negotiations have been completed in the first two quarters.
4. IDFC Securities has an ‘outperform’ on the stock. Over the last few quarters, TCS and HCL Tech have steadily gained because they have managed to outperform rivals Infosys and Wipro in a challenging environment. TCS expects to end fiscal year 2013 with a growth in excess of 11-14 per cent in contrast to Infosys, which sees dollar sales growth at 5 per cent. However, Hitesh Shah of IDFC Securities told NDTV Profit that the growth rates of bigger companies like TCS and Infosys are likely to converge with each other going forward. "We may see a slight uptick in growth for Infosys and Wipro and a slight downtick in growth for TCS and HCL Tech," he added.
5. TCS trades at a premium to Infosys because it has repeatedly impressed the Street with strong earnings. Rich valuations have prevented many brokerages to come out with an aggressive call on TCS. In contrast, Infosys seems to be undervalued after the recent correction, according to many analysts. HDFC Securities has changed its view on Infosys from ‘negative’ to ‘slightly positive’ post earnings. "One positive thing to note is that the market traction for the non-linear platform business (of Infosys) has improved with around 60 clients and over $480 million (Rs. 2,657 crore) of bookings. This should help to restrict the margin contraction, compensating for commoditization of certain parts of IT (information technology) services," HDFC Securities said.

Story first published on: November 23, 2012 10:38 (IST)http://profit.ndtv.com/news/market/article-infosys-the-stock-to-watch-out-for-in-2013-jefferies-313695?pfrom=home-latest

GAIN-20 per cent daily!!

There's method in madness

Even high-risk takers have a rigid adherence to a plan which is admirable

Devangshu Datta / New Delhi Nov 19, 2012, 00:51 IST

One of my friends is a dedicated trader with a very unusual, high-risk style. He is only interested in highly liquid stock futures contracts. On average, the margin on a stock futures contract is roughly 15 per cent – about 6.6 times leverage.

My friend is only interested in futures that have lots of 4,000 shares or more. Ideally, he prefers lots of 8,000 shares or more. For a 4,000 lot, a swing of 10 paisa is worth roughly Rs 400, gain or loss, neglecting brokerages. A Rs 1 swing therefore implies a gain or loss of Rs 4,000 per lot. It’s double that for an 8,000 lot and three times as much for a 12,000 lot.

There are 33 stock futures available with lots of 4,000 or more. By the way, these stocks also meet most reasonable standards for diversification. They are all large caps, of course, (like all stocks in the F&O segment) and between them, these 33 cover some 18 sectors.

On an average, a Rs 1 swing is equivalent to 14 per cent of margin for that select group of 33. Not surprisingly, my friend's returns are extraordinarily variable. There are days when he doubles his margin and days when he loses half of it. According to him, he tends to make or lose nearly 20 per cent a day. He makes money a little more often than he loses, and he usually makes more on a winning trade than he loses when he's wrong.

It should be mentioned that he's a horse-racing aficionado, who entered financial markets simply because they have more financial depth than horse-races. So he's got the stomach required to sleep soundly at night while operating at these risks-levels.

Having decided to operate in this fashion however, he has been sensible enough to do his best to eliminate unnecessary losses. He allocates his bets carefully and he never has an exposure of more than 20 per cent of his capital at a given instant. He doesn't ever carry overnight positions.

He has strict stop losses. He never doubles up or averages down. He absolutely ignores all extraneous data. He is not interested where the Nifty is going, or what the European Central Bank is doing and its impact on currency positions. He will not bet on anything outside this group, no matter how tempting it may seem. Given the diversification within the group however, this is not a major constraint. Marketwide or sector-specific moves are usually reflected.

Within the group of 33, he watches everything of short-term interest. This is not so difficult, given the internet and reasonable computer literacy. He has automated alerts for all news pertaining to these 33 stocks. He has constructed an index, which incorporates this population. He runs a colour-coded “map of the group” (red for losers, green for winners) to give him a visual heads-up. He knows the correlations of each of these stocks with the Nifty and their cross-correlations with each other. He runs technical analysis on various parameters to try and isolate the trends within the group. He tracks insider disclosures and FII/DII holdings and buy/sell patterns.

Applying these methods keep him occupied and interested as well as being quite profitable on the whole. These methods are also scalable to a larger population of stocks as well, and to stocks chosen according to less hair-raising volatility criteria.

What may not scale is the almost inhuman discipline. It is one thing to decide, right or wrong, that a given set of instruments will suit your trading style the most. It is entirely another to be able to focus on those instruments to the exclusion of everything else.

I wouldn't advocate using these methods. Even experienced traders might find 20 per cent daily swings scary. Nor are his risk-management methods necessarily the best. But the rigid adherence to a plan is admirable.

http://www.businessstandard.com/india/news/there/s-method-in-madness/492921/

Essar Oil......profit zooms 27 times

Essar Oil operating profit zooms 27 times

Published: Saturday, Nov 10, 2012, 7:26 IST 
By Promit Mukherjee | Place: Mumbai | Agency: DNA

Essar Oil, the flagship oil and gas business of Essar Group, reported a 27-time jump in its operating profit for the quarter ended September, riding on a 66% jump in refinery throughput and a four-fold increase in processing ultra-heavy crude.

The ability to process ultra-heavy crude indicates its refinery has a higher complexity. This allows it to purchase and process low-quality crude, which costs less, and produce refined products such as petrol, diesel, and kerosene, to be sold at market-linked prices.“With the completion of our optimisation programme at Vadinar, we were able to post a throughput of 5.07 million metric tonne,” said L K Gupta, managing director and chief operating officer, Essar Oil.

He said the refinery has reached its full capacity of 20 million tonne per annum and the impact has started to reflect from the last quarter, with revenues rising.Also, as the refinery’s Nelson complexity (a measure of its ability to process low-quality crude) has increased, the company was also able to produce middle and light distillates, essentially high-premium petroleum products, which bring in higher margins, reflecting in higher earnings before interest, tax depreciation and amortisation (Ebitda). Gross revenue for the quarter stood at Rs23,023 crore, up 67% on year, while Ebitda was up 27 times at Rs1,169 crore compared with Rs43 crore (post sales tax impact).Profit after tax was at Rs105 crore as against a loss of Rs419 crore (post sales tax impact) in the same period last year after.The company also posted a gross refining margin of $7.86 per barrel, up 55% compared with $5.07 per barrel (without sales tax incentive) in Q2FY12, which was one of its highest in the last several quarters.

http://www.dnaindia.com/money/report_essar-oil-operating-profit-zooms-27-times_1762802

BUY JSW STEEL...STEAL THE PROFITS!!!!!!!

FE Home- Power - Story

JSW Q2 net profit up 547%

AGENCIES

Posted: Sunday, Oct 28, 2012 at 1941 hrs IST

New Delhi : JSW Steel Ltd today reported 547 per cent jump in its standalone profit to Rs 822 crore for the second quarter ended September on the back of higher volumes and rupee appreciation.

The company's profit in the same period last year stood at Rs 127 crore.

"Net sales grew by 16 per cent to Rs 8,834 crore during the quarter ended September against Rs 7,625 crore in the year-ago period," the company said in a statement.

"Due to 6.4 per cent appreciation in the value of the rupee against the dollar during Q2 of 2012-13, the gain of Rs 422 crore on restatement of foreign currency monetary items at close of the quarter credited to profit and loss account, has been considered by the company as exceptional in nature," it

said.

"The company posted profit of Rs 822 crore up by 547 per cent over the corresponding quarter of previous year mainly on higher volumes....http://www.financialexpress.com/news/jsw-q2-net-profit-up-547-/1023157/

BANKS FAILURE..DANGER...EURO CRISIS

Sat, Oct 27, 2012 at 11:30

The immeasurable risk European banks may be hiding

There is growing concern among policymakers and analysts that the true extent of European banks' debt problems is being masked. There is growing concern among policymakers and analysts that the true extent of European banks' debt problems is being masked.

Sir Mervyn King, Governor of the Bank of England, became the most high-profile policymaker to date to warn of the dangers of banks putting off foreclosures in a speech Tuesday night.

His stern warning to UK banks that they need to drop the "pretense" that some of their bad debts will be repaid was coupled with the statement that they have "insufficient capital" to deal with losses which have remained undeclared.

Essentially, what seems to have happened is that banks across the euro zone have put off foreclosures on weak businesses - a process known as forbearance. This has been enabled by low interest rates across the region and rescue packages which have injected unprecedented amounts of liquidity into the banking system and helped keep struggling economies afloat.

The scale of forbearance is hinted at in relatively low rates of company insolvencies.

In the UK, despite the recession, insolvency rates are similar to 2002, when the economy grew by 1.6 percent, according to government figures.

Greece's problems have been well flagged - yet just five Greek companies were declared insolvent in 2011, the year it was forced to seek a bailout from international lenders, fewer than in 2007, when its economy was still growing.

This persists across the euro zone, with the weakest economies sometimes experiencing its lowest insolvency rates.

In 2011, the number of insolvencies per 10,000 companies was lowest in Greece, Spain, Italy and Portugal, according to calculations from Creditreform.

However, as Nigel Myer, director of credit strategy at Lloyds, pointed out, the extent of this is "effectively invisible" and "almost impossible to quantify." Decisions are made by individual banks and they do not have to declare them under accountancy rules.

Putting off foreclosure could be dangerous not only because it masks the true state of businesses, but because it could mean a faster rate of insolvencies if banks decide to change their policies in response to a worsening economy, with potential damage to employment figures and the broader economy - and to the banks themselves.

"To the extent that forbearance has taken place, a worsening economic environment in these countries could lead to a faster rate of deterioration in asset quality than might be inferred from reported numbers," Myer warned.

Of course, delaying the repayment of non-performing loans can be positive for the economy, particularly in the short-term.

"It has allowed companies to survive and people to be employed," as Myer pointed out. "It also very likely supports tax receipts and reduces the need for social security support."

Sir Mervyn's warning does not chime with other influential figures in the UK.

Andrew Bailey, a member of the Bank's Financial Policy Committee and head of prudential regulation at UK regulator the Financial Services Authority, thanked the banks for their actions earlier in October.

The European countries least likely to be affected by forbearance following worse-than-expected economic data are Switzerland, Austria and Denmark, according to Myer, who suggested spreads in Swiss banks and the recent rally in Danish spreads should be supported by worries about forbearance.

Written by Catherine Boyle, CNBC. Twitter: @cboylecnbc.

http://www.moneycontrol.com/news/world-news/the-immeasurable-risk-european-banks-may-be-hiding_773101.html

NO MORE PROFITABLE WITH PENNY STCKS

How to steer clear of stocks that do the vanishing act

LOKESHWARRI S.K.

Small-cap stocks with weak fundamentals and no institutional holding are more susceptible to suspension. If you are among those passive investors who review their portfolios once in two or three years, chances are high that one day you would be found wondering how to sell stocks such as NEPC Agro or Jord Engineers or Sanghi Polyester that are part of your holding. These stocks have disappeared from stock exchanges and investor radar.

It is not just these stocks that have done the vanishing act. The Bombay Stock Exchange sports a list of around 1,700 stocks that have been de-listed and another 1,220 that have been suspended from trading.

Investors in shares that are de-listed have it relatively easy. In voluntary delisting, the promoter offers to buy back shares from the public due to various reasons, including merger of companies, public holding falling below prescribed limits or because the promoter wishes to own the entire stake. When the company is liquidated, the shares are compulsorily de-listed from exchanges.

Such closure is not available in suspended stocks. When shares of a company are suspended from trading, it remains a possibility that the company could comply with exchange regulations and re-list. Investors continuing to hold such shares are left with no exit route when the company decides to forego listing and move away from public glare.

THE RULES

Companies have to make periodic disclosure to exchanges on their financial statements, shareholding pattern, trading in company’s shares by insiders, adhering to corporate governance practices and so on as part of the listing agreement signed with exchanges. When companies fail or are late in making these disclosures, they could land in trouble.

The Bombay Stock Exchange stops trading in shares of companies which do not make the above disclosures. For instance, companies that do not submit quarterly financial results in two consecutive quarters or are late in the submission in two of the previous four quarters will invite penal action in the form of suspension.

The rules followed by the National Stock Exchange are slightly different. Non-compliant companies are served show-cause notice by the exchange. Based on the response, a committee decides whether the shares of the company need to be suspended or not.

Suspension can be revoked once the companies follow the requirements of the listing agreement for a specified period. BSE additionally requires that the promoter holding should be locked in for a year from the date of revocation, the company should have signed a demat agreement with at least one depository participant and it should have its own Web site.

TRENDS

It is, however, obvious from a quick perusal of the list put out by the BSE and NSE that companies are using the suspension route to disappear. The Bombay Stock Exchange Web site lists around 1,220 stocks in which trading has been halted due to penal reasons since 1995. The list on NSE contains 155 companies, with few companies featuring in both lists.

Suspension of companies has accelerated after the dotcom bubble of 2000. Between 2000 and 2005, BSE suspended 983 companies while NSE suspended 102 companies. This accounts for 81 and 67 per cent of total suspension list on BSE and NSE, respectively.

While suspensions were seen tapering off since 2005, there is a spike in the first nine months of 2012. The number of companies suspended from trading in this period is double the number reported for entire 2011 on both the exchanges.

Analysing the profile of the suspended companies, three trends emerge.

Some sectors account for a disproportionate share of the suspended companies. Companies in sectors that have been in extended business down-cycle have, in some cases, turned loss-making, and slip up in making regular filings with the exchanges. This leads to eventual exit from stock exchanges too. Textiles and apparels reported the maximum number of suspended companies as this sector, hit by both excess supply and rising input costs, has been in a slump for over a decade now.

Stocks such as Akai Impex, Salem Textiles and Arihant Cotsyn that were once trading favourites now feature in the suspended companies list. The same applies for the chemical industry that reported 50 suspended companies, including S M Dyechem and J F Laboratories.

Many small and medium enterprises in industries requiring lower capital outlay that raised funds through stock markets were unable to withstand the vagaries of business and economic cycles. With deteriorating financial conditions, many such companies also stopped complying with exchange requirements that then led to their suspension. Companies in sectors such as food packaging, auto ancillaries and edible oils are cases in point.

Last, some sectors emerge as the ‘theme’ of the moment with investors buying stocks in the sector regardless of the fundamentals, promoter credentials and so on. Investors willing to buy Internet companies at astronomic valuations at the turn of the century, or running after infrastructure companies post-2005 are examples of such irrationality. Who can forget yesteryear darlings such as Silverline Technologies, Pentagon Global or DSQ Software?

GUIDE-POSTS

The market regulator is unable to find a viable solution to return investor funds locked in such suspended companies. Suggestions range from making the promoter buy back these shares and de-list to exchanges using the investor protection fund to recompense investors.

While not much can be done if you are already holding stocks in these companies, it is imperative to steer clear of these companies in future. What are the guideposts that investors can watch out for? We analysed the stocks suspended by BSE in 2012 to identify a few signals.

The stock price of the company is the first giveaway. The range between which these stocks traded was Re 0.17 and Rs 58. Eight out of every ten stocks suspended traded at less than Rs 10. That is, most of these stocks fall in the penny stock category (if we define penny stocks as those that trade at values less than Rs 10. Fifteen per cent of the stocks were priced at less than Re 1.

Almost all companies suspended by BSE this year belonged to the small-cap segment, with market capitalisation of less than Rs 50 crore. Almost 70 per cent of these companies had market capitalisation less than Rs 10 crore with many having market cap of even less than a crore.

Barring a few exceptions, institutional holding, both domestic and foreign, in these stocks is absent. It is, of course, obvious that the small market capitalisation, low liquidity and deteriorating finances would keep these large investors away thus increasing the impact cost on these counters.

A quick scan of the companies’ financial statements would definitely flash red for risk-averse investors. These companies had depleted reserves of less that a crore or even negative reserves. Over three-fourth of the companies had less than a crore in cash in their books. Half the companies reported revenue of less that Rs 10 crore and a third of the companies reported operating losses.

If you are among the brave-hearts who would want to dabble with these high-risk stocks with the intention of making a killing at some date, you need to scan the exchange announcements at least once every week. The exchanges put out notices of companies due for suspension in advance so that investors can exit these stocks.

Also keep scanning SEBI announcements regarding companies the regulator is investigating for trading violations. Such companies are also likely to get suspended, if found guilty. Beware of IPOs with low credit rating because many of these suspended companies stem from IPOs with doubtful credentials.

Lokeshwarri.sk@thehindu.co.in

http://www.thehindubusinessline.com/features/investment-world/how-to-steer-clear-of-stocks-that-do-the-vanishing-act/article4016892.ece?homepage=true&ref=wl_home

“ZERO COST- NEVER LOSS” MODEL

Not even a single day I could make Rs 1000/- for the last 20trading sessions. The reasons could be many. I call it like STORIES.

In my earlier trading days I never lost money on any given day for two months in a row.

Now there is lot of confusion, mis-reading the screen and wrong calculations…what not many things are generating tabulating for confusion. The turbulence in the mind is heavy and forcing me to take un-necessary positions causing me to PAY for IT.

I lost heavly during Jan-12 boom. I asked every body to buy in the market from last week of Dec-11 but unfortunately I kept a short position in TATASTEEL. I converted the day position in to a night position, paid heavy penality. The next day unfortunate position was taken, instead of covering the old one, we took another short position. The market zoomed like any thing. The beauty part is we lost our TWO internet connections. Calling the broker to square off the positions lead to Rs 15000 loss. So kept for one more day..loss is mounting…brick batting…blame game…Sleepless nights…everything crystallized to a loss of Rs55000 LOSS. I still remember the trauma. The suffering is heavy but I didn’t lost my smile on my face. Because I have not opted the position but failed to manage.

I have very good experience in managing my positions….MY TALL CLAIM…

Now I am not getting the confidence due to my On & Off screen management and readings…

At one time when my energies are high…I thought of building an empire for the deserving people ...needs to be supported…all is DREAM…the reality is …I am in requesting position….

The FACT is I have tremendous and stupendous STOCK MARKET knowledge…but behaving like a Stupid…loosing all opportunities for want of some thing…I have No eligibility to do any sacrifice…Only to take on the Challenges…

The WINNER is the one who accepts Challenges and convert them into success stories…where as the loser will succumbs to pressure an seek sympathy  from the …

The CAPACITIES are built on CONFIDENCE to ACHIVE and the Bench Marks of Success CYCLES goes…on..

I HAVE A DREAM OF CONVERTING MY SHARES INTO “ZERO COST- NEVER LOSS” MODEL. I STARTED WITH ONE AND WILL ADD….

Transgene Biotek Ltd.

I have been recommending this stock for INVESTMENT buying ever since I saw the growth in the sales from mere 0.5 cr to 5 cr in a quarter. This has been happening for the last 4-5 quarters. I am blindly supporting the stock from Rs 26-30 levels but the stock fell relentlessly from there to Rs 8-9 range. Where as the products pipeline has the opportunity to out perform is not happening in the bourses. The equity has grossly bloated from 15 cr to 65 cr with in two years (2010-12).  

BSE- Notices for refernece:

Notice No	20110505-20	Notice Date	05 May 2011
Category	Company related	Segment	Equity
Subject	Listing of new securities of Transgene Biotek Ltd.
Content
Trading members of the Exchange are hereby informed that the under mentioned securities of Transgene Biotek Ltd, (Scrip Code: 526139, ISIN No INE773D01018) are listed and admitted for trading on the Exchange with effect from Friday, May 06, 2011. Security Details 2,50,00,000 equity shares of Rs.10/- each issued underlying  Global Depository Receipts (1GDR = 10 Equity Shares) of the Company. These shares are ranking pari passu with the existing equity shares of the company. Date of Allotment 22.02.2011 Dist. Nos. 15770001 to 40770000 Price per GDR US $ 9.2 In case trading members require any clarification on the subject matter of the notice, they may please contact the undersigned on Tel. Nos. 022 2272 8899. (Pavan V. Naik) Deputy Manager - Dept. of Corporate Services

october Series Nifty Support September 27, 2012 8:02 PM

Most Influential 50 in 2012 Shows Turmoil: Bloomberg Markets

By Robert S. Dieterich - Sep 5, 2012 9:32 PM GMT+0530

Bloomberg Markets Magazine

The ability to move markets or shape ideas and policies. The clout to affect the price of a security or the structure of a deal. These are the attributes that define the people who hold sway in the world of finance -- those who make up the second annual 50 Most Influential list in the October issue of Bloomberg Markets magazine. 

To find this year’s 50, we drew on the reporting and expertise of Bloomberg News journalists in 150 bureaus around the globe. The chances of making the list go up if someone finishes at the top of the rankings of hedge-fund managers, economists or investment bankers that Bloomberg Markets publishes during the year.

Recent accomplishments count more than lifetime achievement, and we favor people whose influence is growing. Two-thirds of the people in this year’s list are new, reflecting political turmoil, the deepening euro-zone debt woes and the string of difficulties at big financial firms.

We’ve grouped our list into five spheres of influence -- Corporate Power Brokers, Money Managers, Policy Makers, Thinkers and Bankers. We excluded heads of government from our Policy Makers group in favor of the ministers, lawmakers and central bankers who make policy reality.

CORPORATE POWER BROKERS

Warren Buffett CEO Berkshire Hathaway Inc. (BRK/A) Count on Buffett, 82, to frame new financial controversies with old-line value-investing rules. As Facebook shares slid after the IPO, he said: “You shouldn’t buy a farm because you think you’re going to sell it the next day for more money.”

Chung Mong Koo CHAIRMAN Hyundai Motor Co. (005380) The 74-year-old son of the industrial group’s founder has made Hyundai Motor the world’s No. 5 car company and is making inroads in the luxury segment. Hyundai Motor was the most profitable of the world’s large automakers in 2011.

Tim Cook CEO Apple Inc. (AAPL) While Apple’s market value soared during his first year in the top job, Cook, 51, may need many years to show he’s a worthy successor to Steve Jobs. He also has to live up to his $378 million compensation package for 2011.

John Fredriksen CHAIRMAN Seadrill Ltd. (SDRL) He’s undeterred by the worst shipping market since the 1970s. Fredriksen, 68, the world’s biggest oil tanker owner, is betting $11 billion to extend his dominance over the transportation of energy.

Koch Brothers CO-FOUNDERS Koch Industries Inc. David Koch, 72, and brother Charles, 76, have a combined fortune that’s about $11 billion bigger than Bill Gates’s. The siblings set the standard for American titans who seek influence in politics.

Yuri Milner CO-FOUNDER Mail.ru Group Ltd. The largest Russian-language Internet company was a springboard. Milner, 50, emerged as a global tech heavyweight in 2009 by acquiring the largest stake in Facebook. A $100 million house in Silicon Valley reinforces his stature there.

Ginni Rometty CEO International Business Machines Corp. (IBM) Rometty, 55, rose through the ranks to claim the top job in January at the fourth-largest U.S. company by market value. She aims to get operating earnings to $20 a share in 2015, up from $13.44 last year.

Carlos Slim CHAIRMAN EMERITUS America Movil SAB The fortune of the richest man in the world grew by $12 billion this year as of mid-August, helped by share gains for large holdings. Slim, 72, has been a buyer, with America Movil building the largest stake in Dutch mobile-service provider Royal KPN.

Tadashi Yanai FOUNDER Fast Retailing Co. The parent of the Uniqlo clothing chain is the biggest component of the Nikkei 225 after its shares rose 158 percent in the five years ended in mid-August. Yanai, 63, is betting big on China, where his plans call for hundreds of stores.

Mark Zuckerberg FOUNDER Facebook Inc. (FB) The initial public offering in May and the hype that preceded it and the hand-wringing that followed put Zuckerberg, 28, front and center on Wall Street. Now, he needs to show he can generate ad dollars with his network of a billion or so friends.

MONEY MANAGERS

Cliff Asness CO-FOUNDER AQR Capital Management LLC Asness, 45, grew assets under management at AQR by about two- thirds in 18 months, to $54.5 billion as of June 30. The tally includes $7 billion in mutual funds, which range from an arbitrage product to a fund designed to capture stock momentum.

Hamed bin Zayed al Nahyan MANAGING DIRECTOR Abu Dhabi Investment Authority After the death of his older brother in 2010, Sheikh Hamed assumed the top job at Abu Dhabi Investment Authority, one of the world’s three largest sovereign-wealth funds, according to research firm Preqin Ltd.

Chase Coleman FOUNDER Tiger Global Management LLC A 37-year-old protege of Julian Robertson, Coleman claimed the top spot in Bloomberg Markets’ February ranking of the best- performing large hedge funds, on the strength of a 45 percent return over 10 months. “I would always bet on Chase,” Robertson says.

Leon Cooperman FOUNDER Omega Advisors Inc. Average annual returns of more than 13 percent over two decades distinguish Cooperman, 69, as a stock picker with staying power. The question he asks to find value: “What’s ridiculously priced now?”

Ray Dalio FOUNDER Bridgewater Associates LP At the helm of the largest hedge-fund firm, Dalio, 63, mostly has kept the scale of the operation from damping returns. While his flagship Pure Alpha fund lost 3.9 percent in the first half of this year, it had still returned 91.5 percent over three years.

Mary Callahan Erdoes ASSET MANAGEMENT CEO JPMorgan Chase & Co. (JPM) As the top executive in the bank’s global asset management division, Erdoes, 45, runs an organization that managed a cool $1.4 trillion as of March. That includes a hedge-fund group that, on its own, would be the world’s third biggest.

Larry Fink CEO BlackRock Inc. (BLK) Fink, 59, runs the world’s largest asset management company, with $3.56 trillion as of June 30. He’s been telling governments and companies how to handle their investments; now he wants BlackRock to give advice to individuals too.

Bill Gross CO-CHIEF INVESTMENT OFFICER Pacific Investment Management Co. After trailing peers in 2011, Gross, 68, got the world’s largest mutual fund back on track. As of July 31, the Pimco Total Return Fund was beating 98 percent of similar funds both year to date and over five years.

Jeffrey Gundlach FOUNDER DoubleLine Capital LP With an average annual return of 13.9 percent for his flagship bond fund, from its inception in 2010 through July, Gundlach, 52, is beating his largest rivals. His firm is up to about $40 billion under management.

Michael Platt FOUNDER BlueCrest Capital Management LLP His $32 billion firm is among those that profited from the London Whale’s failed trade. Platt, 44, was up 3.9 percent year to date through July in his international macro fund and 2.6 percent in his BlueTrend fund.

POLICY MAKERS

Mamata Banerjee CHIEF MINISTER West Bengal Her Trinamool Congress party, part of the ruling coalition, has stalled Prime Minister Manmohan Singh’s economic reform agenda by opposing foreign retailers. Banerjee, 57, won a landslide in West Bengal in 2011 to end 34 years of communist rule.

Ben S. Bernanke CHAIRMAN U.S. Federal Reserve Bernanke, 58, is either dooming millions to joblessness because he’s politically timid or debasing the currency, depending on which columnist or candidate is speaking. Either way, he’s established himself as one of the most powerful central bankers in history.

Preet Bharara PROSECUTOR U.S. Department of Justice With 66 insider-trading convictions so far during his tenure as U.S. Attorney for the Southern District of New York, Bharara, 43, has established himself as the watchdog with bite. He’s in the post that launched Rudy Giuliani’s political career.

Mario Draghi PRESIDENT European Central Bank When he cut interest rates at his first meeting as president, Draghi, 65, defied his staff and showed he would plot a different course than predecessor Jean-Claude Trichet. Markets are testing his vow to do whatever it takes to save the euro.

Timothy F. Geithner SECRETARY U.S. Treasury Regardless of who wins the presidential race, Geithner, 51, plans to step down. Yet he still has the power to be a thorn in the side of leaders in Europe, pushing them to act more decisively to strengthen the currency union.

Paul Ryan CHAIRMAN House Budget Committee A member of the Young Guns, who rose quickly to challenge older Republican leaders in the U.S. House of Representatives, Ryan, 42, is no compromiser. Now the Republicans’ vice presidential candidate, he was on the Bowles-Simpson commission and voted against the final plan.

Aung San Suu Kyi CHAIRPERSON National League for Democracy Suu Kyi, 67, now in Myanmar’s legislature instead of under house arrest, says she’s wary of a rush by businesses to enter the country. Nonetheless, her freedom is a symbol of the change that has investors weighing Myanmar as a frontier market.

Adair Turner CHAIRMAN U.K. Financial Services Authority Turner, 56, together with Bank of England Governor Mervyn King, helped push Robert Diamond out of Barclays after the Libor scandal broke. Turner is a potential candidate to replace King in June 2013.

Janet Yellen VICE CHAIRMAN U.S. Federal Reserve Yellen, 66, has led Ben S. Bernanke’s drive to make the central bank more transparent. Her success at pulling inflation hawks and doves together might make her a candidate to succeed her boss.

Zhou Xiaochuan GOVERNOR People’s Bank of China As investors worldwide contemplated China’s slowing growth, Zhou, 64, cut interest rates in June for the first time in three years. He’s been atop the central bank for almost 10 years, since shortly after Wen Jiabao and Hu Jintao rose to power.

THINKERS

Maury Harris CHIEF ECONOMIST UBS Securities LLC The team led by Harris, 65, had the most-accurate predictions of U.S. growth in Bloomberg Markets’ January ranking of economic forecasters. Harris sees the U.S. expanding 2.1 percent this year and says politicians will somehow avoid their fiscal cliff.

Glenn Hubbard DEAN Columbia Business School Hubbard, 54, a Mitt Romney adviser, says short-term stimulus won’t do much for the economy, while tax reform that cuts marginal rates will. Hubbard was chairman of the Council of Economic Advisers when the Bush tax cuts were born.

Daniel Kahneman PROFESSOR EMERITUS Princeton University The Israeli-born psychologist, a Nobel laureate for his work in behavioral economics, won new fans in the past year with his book about biases in human thinking. Kahneman, 78, has lucid explanations of the mistakes that bankers and investors make.

Paul Krugman PROFESSOR Princeton University The Nobel laureate is pounding the table to argue that governments should be supporting the global economy. Krugman, 59, bemoans the austerity he sees everywhere, not just in the euro zone but also as U.S. state and local governments shrink.

Carmen Reinhart PROFESSOR Harvard University Her research connects the dots between debt, financial crises and very slow recoveries. Reinhart, 56, in a paper published with co-authors in April, warns that debt above 90 percent of a country’s GDP can restrain growth for more than 20 years.

Alan Simpson FORMER SENATOR U.S. Congress The debt-reduction blueprint created by the commission Simpson co-chaired, known as Bowles-Simpson, has a following among businesspeople, bankers and former lawmakers, if not incumbent politicians. Simpson, 81, keeps lobbying for it.

Hans-Werner Sinn PRESIDENT Ifo Institute The most popular economist in Germany, Sinn, 64, has the power to stop Angela Merkel from taking measures that might alleviate the euro crisis.

Joseph Stiglitz PROFESSOR Columbia University Stiglitz, 69, sharpened his critique of the growing income inequality gap in the U.S. in a best-selling book in June. The Nobel laureate’s views permeate the left side of the debate over the economy and taxes in the presidential race.

John Taylor PROFESSOR Stanford University He’s known in monetary policy circles for the Taylor rule, a formula to prescribe moves in interest rates based on changes in inflation and output. Paul Ryan calls Taylor, 65, “the leading voice” on Fed matters.

Nicolas Veron SENIOR FELLOW Bruegel Veron, 40, was an early advocate of a banking union as a way to tamp down the euro-zone debt crisis. He splits his time between his Brussels think tank and the Peterson Institute for International Economics in Washington.

BANKERS

Lloyd Blankfein CEO Goldman Sachs Group Inc. (GS) Amid cost cuts and job reductions, Goldman’s shares were up 18 percent year to date through yesterday, while Morgan Stanley (MS) shares had gained just 2.5 percent. Blankfein, 57, has won back some influence in part by simply keeping the firm out of the headlines.

Emilio Botin CHAIRMAN Banco Santander SA Although running a Spanish lender might seem a tenuous position, Botin, 77, has seen his efforts to expand and diversify pay off. Santander, which gets a majority of its profit outside Spain, has a market valuation more than double that of Deutsche Bank.

Jamie Dimon CEO JPMorgan Chase & Co. The trade that sank the London Whale cost the bank more than $5.8 billion and undermined its CEO’s message on excessive regulation. Still, Dimon, 56, showed he can be contrite, and the company still made $10 billion in the first half of this year.

Isabelle Ealet CO-HEAD OF SECURITIES Goldman Sachs Group Inc. Ealet, 49, was promoted this year when two of four people running sales and trading left. A native of France, she and co- heads Pablo Salame and Harvey Schwartz oversee businesses that generated 60 percent of Goldman’s revenue in 2011.

Andre Esteves CEO Grupo BTG Pactual The Brazilian investment banker is building BTG Pactual into a Latin powerhouse. Esteves, 44, has set his sights on what he calls the wounded U.S. and European Mastodons of global banking.

Anshu Jain CO-CEO Deutsche Bank AG (DBK) Jain, 49, became co-CEO on June 1 and is scheduled to lay out his strategy in more detail this fall. For now, he is cutting about 1,900 jobs by year-end -- 1,500 of them in the investment bank, which he used to run. He’s also reducing compensation.

Jiang Jianqing CHAIRMAN Industrial & Commercial Bank of China (601398) Ltd. The head of China’s largest bank, Jiang, 59, has been looking overseas. He has made acquisitions from Asia to South Africa to America, where the company is buying 80 percent of the U.S. unit of Bank of East Asia.

Gerald McCaughey CEO Canadian Imperial Bank of Commerce Canada’s banks have dominated Bloomberg Markets’ ranking of the world’s strongest banks, and CIBC, with its cash hoard, scored best among its compatriots this year. McCaughey, 56, is pushing to make his company even less risky.

Ruth Porat CFO Morgan Stanley With the market treating the firm’s debt as riskier than that of rivals, Porat, 54, has been leading an effort to revamp Morgan Stanley’s funding. She’s taken steps to get more deposits, eliminate commercial paper and improve liquidity.

John Stumpf CEO Wells Fargo & Co. Stumpf, 58, has moved into investment banking and set a goal of doubling investment management. Not the best-known name in global finance, Wells Fargo has nonetheless become the biggest U.S. bank by market capitalization.

(Click here for a slide show of Bloomberg Markets magazine’s 50 Most Influential.)

To contact the reporter on this story: Robert S. Dieterich in New York atrdieterich@bloomberg.net

http://www.bloomberg.com/news/2012-09-04/most-influential-50-in-2012-shows-turmoil-bloomberg-markets.html