How to reduce your healthcare costs ::Business Line

Plenty of choice is available for people from different economic segments as the Indian pharma market is fragmented and competitive.

Thanks to lifestyle changes and lack of awareness, Indians have become more susceptible to diseases such as heart attacks and diabetes.

With about 6 per cent of the population suffering from diabetes, India is now the diabetes capital of the world.

Given the meagre social spending on healthcare and paltry penetration of health insurance schemes, the medical expenses of most of the population are met out of pocket. The result, an average household spends 10-15 per cent of its disposable income to meet healthcare needs.

In this context, let us look at three ways by which one can save on healthcare costs.

Technicals: Bank of Baroda, Piramal Glass, Everest Industries, Karnataka Bank, Hatsun Agro, CORE Education, Godrej Consumer, ::Business Line

Could you please advise on short- and long-term view of Godrej Consumer Products and CORE Education and Technologies? Is it right time to buy these stocks?

Vishal

Godrej Consumer Products (Rs 554.9): Godrej Consumer Products is in a multi-year bull run. The stock recorded the high of Rs 601 in June and is currently trading close to this peak. The long-term trend in the stock is up. It has strong support in the region between Rs 370 and Rs 406. Long-term investors can hold the stock as long as it trades above this band.

Break below Rs 370 will drag the stock to Rs 346 or Rs 289. Long-term target on a strong break above Rs 600 is Rs 755.

Short-term supports for the stock are at Rs 480 and Rs 458. Investors with greater risk appetite can use declines to these levels to accumulate the stock with stop at Rs 455.

Pivotals - Reliance Industries, SBI, Infosys, Tata Steel ::Business Line

Reliance Industries: The stock was choppy and ended almost at the same level as the week before. It is reversing higher from a key support around Rs 670.

It will face resistance at Rs 746 in the ensuing week. A strong penetration of this resistance will push the stock higher to Rs 770 and to Rs 792 in the forthcoming weeks.

Short-term traders should stay watchful as long as the stock trade below Rs 746 and initiate fresh long position on a strong move above this level.

On the other hand, fall below Rs 670 will pull the stock down to Rs 557, Rs 532 and Rs 512 in the medium-term.

As long as the stock trades below Rs 790, we continue with the stance that its medium-term trend remains down.

A new core inflation measure ::Business Line

Bajaj Auto: Buy ::Business Line

The company's sizeable export revenues and market leadership in mid-to-premium segment bikes make it one of the better picks among auto stocks.

Broad market volatility and a moderation in two-wheeler sales saw the Bajaj Auto stock lose steam in the last few months. The stock dropped about 17 per cent since it touched its one-year high of Rs 1,839 at end February 2012. This fall, however, presents investors with a long-term perspective an opportunity to buy the stock.

The company's sizeable export revenues, its superior operating margins and market leadership position in mid-to-premium segment bikes make it one of the better picks among auto stocks.

At the current market price of Rs 1527, it trades at a price to earnings ratio of about 13.5 times its estimated earnings for FY2013, at a discount to Hero Moto Corp (14.5 times).

Near-term outlook turns positive for Reliance Infra, Tata Motors ::Business Line

Do interest rate changes matter? :Business Line,

Not much for inflation, but for output, though with considerable lag!

Slowing growth in recent months has led people to expect the Reserve Bank of India to lower interest rates in its forthcoming policy review. The stock markets are up sharply on expectations of a revival in corporate prospects if rates are cut. But how much do rate cuts really help increase output? Do interest rate increases at least manage to quell inflation, as economic theory suggests?

An analysis shows that the relationship between interest rates and output or inflation is not that straightforward. Analysis of data over the past four years suggests that interest rate changes have had little or no impact on inflation, either immediately or with a lag of a few quarters. Interest rate changes do impact output, but not as quickly as stock market investors seem to expect.

Good link for real time NCD price and yield :Edelweiss

Good link for real time NCD price and yield
http://www.edelweiss.in/Debt/DebtMovements.aspx

NSE, Bulk deals, 18-Jun-2012

Date	Symbol	Security Name	Client Name	Buy / Sell	Quantity Traded	Trade Price / Wght. Avg. Price	Remarks
18-Jun-2012	ARSSINFRA	ARSS Infra Proj. Ltd	IFCI LTD.	SELL	99,861	42.52	-
18-Jun-2012	DPTL	Dhunseri Petroc & Tea Ltd	JVL AGRO INDUSTRIES LIMITED	SELL	4,51,000	107.00	-
18-Jun-2012	DPTL	Dhunseri Petroc & Tea Ltd	PLENTY VALLEY INTRA LTD	BUY	3,80,000	107.00	-
18-Jun-2012	HDIL	Housing Development and I	GENUINE STOCK BROKERS PVT LTD	BUY	20,99,931	73.29	-
18-Jun-2012	HDIL	Housing Development and I	GENUINE STOCK BROKERS PVT LTD	SELL	20,99,931	73.29	-
18-Jun-2012	INSECTICID	Insecticides (India) Limi	MULTIPLEX CAPITAL LTD.	BUY	23,302	401.67	-
18-Jun-2012	INSECTICID	Insecticides (India) Limi	MULTIPLEX CAPITAL LTD.	SELL	68,914	400.87	-
18-Jun-2012	TATASPONGE	Tata Sponge Iron Ltd.	RAJASTHAN GLOBAL SECURITIES LTD	BUY	78,180	344.12	-

Microsec: RBI Mid Quarter Monetary Policy

RBI leaves the Repo, CRR unchanged

As expected , The Reserve Bank of India (RBI), in its Mid quarter Monetary Policy Review has kept the Repo rate unchanged at 8%. But despite comments from leading bankers, it has also kept Cash Reserve Ratio (CRR) unchanged at 4.75%. However, the Central Bank has agreed to continue with open market operations. This time RBI has given more weight towards rising inflation rather than week growth momentum.

Guidance

The evolving growth-inflation dynamic will continue to influence the Reserve Bank's stance on interest rates. Core inflation has moderated, reflecting demand conditions and lower pricing power. However, both headline and retail inflation rates are rising, which have a bearing on inflation expectations. Future actions will depend on a continuing assessment of external and domestic developments that contribute to lowering inflation risks.

Management of liquidity remains a priority. Even as the liquidity situation converges to the comfort zone, the Reserve Bank will continue to use OMOs as and when warranted to contain liquidity pressures.

Finally, recognizing that the global situation is turbulent, the Reserve Bank stands ready to use all available instruments and measures to respond rapidly and appropriately to any adverse developments.

-- 

FII & DII trading activity across NSE and BSE 18-06-2012

Category	Buy	Sell	Net
	Value	Value	Value
FII	1698.62	1286.21	412.41
DII	895.55	958.91	-63.36

 

 

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FII DERIVATIVES STATISTICS FOR 18-Jun-2012

FII DERIVATIVES STATISTICS FOR 18-Jun-2012
	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores
INDEX FUTURES	94537	2378.78	87921	2189.33	451800	11148.63	189.45
INDEX OPTIONS	1386196	34971.37	1372345	34637.15	1770873	44815.15	334.22
STOCK FUTURES	60451	1461.87	74555	1821.49	947496	22682.05	-359.62
STOCK OPTIONS	84895	2228.71	84646	2223.96	52700	1341.27	4.74
						Total	168.79

RBI Policy Review - RBI shifts focus to headline inflation: Edelweiss PDF link

In a surprise move, in its mid-quarter monetary policy review, the Reserve Bank of India (RBI) left repo rate and CRR unchanged. The central bank believes that interest rates are only a small factor in the current economic downturn, and worries that supply bottlenecks and sticky inflation expectations are keeping up headline inflation.

Emami - Carves another niche: Edelweiss PDF link

Emami has entered into the kids' personal care market in India with the launch of 'Boroplus Kids-Total Defense Talc', priced at INR45 for 100g, targeting consumers in the age group of 5-12 years. Currently, this relatively niche category has no major competitors; hence, Emami plans to cash in on its Boroplus brand. In the past, Emami has successfully identified niche spaces and scaled them up (like fairness cream for men).   It is currently being test marketed in Andhra Pradesh and post that will be rolled out nationally. Based on the response, Emami may expand into other kid focused categories like lotion and creams. A key challenge will be adequately sub segment in terms of product and brand positioning. Emami is already present in the highly competitive infant baby oil segment; we believe this strategy of entering a new segment would help it add new growth drivers. Maintain ‘BUY’.

Steel Authority of India - Optimistic on margin improvement; visit note; Hold : Edelweiss PDF link

Steel Authority of India (SAIL IN, INR 93, Hold)

Takeaways from our meeting with the management of Steel Authority of India (SAIL) are: (a) No further delay in expansion projects; (b) focus on cutting cost and margin improvement (post expansion EBITDA/t of over USD 160/t); (c) wage hike negotiations to be long drawn; and (d) all capex to be funded in 1:1 D/E ratio. We are partially factoring in these benefits. We retain our estimates and maintain ‘HOLD’ (target price of INR106).

Edelweiss Technical Reflection (ETR) 18 June

Edelweiss Technical Reflection (ETR)

Indian markets consolidated the short-term bullish setup with a strong performance on Friday managing a close above the 5100 mark. The final session of the previous week began on a positive note and on expectations of a favorable outcome of key events in the current week, managed to rally throughout the day to close near the highs. Nifty has regained its spot above the crucial 200 DMA on a weekly closing basis that is likely to propel further gains. Trading volumes continue to clock at an average level and the breadth remained in favor of advances. Momentum oscillators have rolled bullish on the daily chart with MACD crossing above in the positive territory. The hourly cycle too has turned bullish after undergoing a minor correction. Expect Nifty to climb towards the 50% retracement mark of 5200 and on sustenance of the same can target the 61.8% retracement level of 5300. Key support on the downside is pegged at 5072 (200 DMA).
All the sectoral indices ended the day in the green led by gains in Auto (+2.57%), Banking (+2.19%), and Realty (+1.78%) indexes. Among the notable underperformers of the day were Oil & Gas (+0.71%) and Healthcare (+1.06%) indexes. The broader market indices managed to underperform the frontline index with gains of 0.57% for the Mid-cap and 0.46% for the Small-cap indices.


Bullish Setups: CNXBANK, REC, HUVR, DRRD, SIEM, RCAPT, TCS
Bearish Setups: ONGC

Stocks in News: 18June: edelweiss

 Stocks in News

Govt rules out raising 49% FDI cap in Aviation (ET)
Coal India cancels supply deals with power cos (ET)
SBI to raise up to $ 2 billion through overseas bond sale (ET)
Govt flags off process for 10% stake sale in Nalco (ET)
Shriram Transport plans INR 20-bn NCDs (BS)
Havells to invest INR 5-bn in 3 years (BS)

18 june: Business News Tablet (click on link to read article) : IFCI Financial Services Limited

Business News Tablet (click on link to read article)

Economic Times		Business Standard
Ø  Hershey's mulls an end to JV with Godrej, plans to go solo in India Ø  Greek pro-bailout parties set for ruling majority Ø  India ups US debt exposure; holds over $50 bn securities Ø  Jet Airways in talks with Star Alliance, SkyTeam Ø  RBI may pull back the CRR button by 50 bps to spur growth: Microsec Ø  France seeks 120 bln EU package, euro bonds later		Ø  Foreign airlines give a muted response to higher FDI cap Ø  Shriram Transport plans Rs 2,000-cr NCDs Ø  Sugar production may dip to 25 mn tonnes in 2012-13 Ø  Fertiliser ministry wants urea out of GST Ø  Greeks vote in election that could decide fate of euro Ø  Gas regulator may scrap 3rd round of distribution auction
Business Line		Mint
Ø  RBI policy, Greek polls likely to keep stocks volatile Ø  Sesa Goa, Sterlite to meet on proposed merger Ø  NMDC starts talks to revive joint venture with Rio Tinto Ø  Tata Teleservices appeals to TDSAT for additional spectrum Ø  Govt starts 10% stake sale process in NALCO Ø  IRDA clears 26% stake sale in Max New York Life to Mitsui		Ø  Lanco to exit hydropower business Ø  Lower fuel prices weigh on Cairn India despite higher production Ø  India rejects S&P’s warning of downgrading its credit rating Ø  No obligation in contract on production targets: RIL to oilmin Ø  SBI plans up to $2 bn offshore borrowing Ø  New index shows lower growth for major economies
Financial Express		Financial Chronicle
Ø  'Tata Steel yet to feel pinch of slowdown' Ø  Indian economy is in stagflation: Moody's Ø  Henkel India to merge with Jyothy Labs Ø  FIIs pull out Rs 186 cr so far this month Ø  Ratan Tata purchases 4.25 lac sh. in Tata Motors for R9.9 cr		Ø  Infosys, Wipro, HCL cautiously optimistic about European biz Ø  Greeks vote in cliffhanger euro election Ø  Top 50 stock brokers command over half of cash market Ø  Peak power deficit of 13,000 mn units in Apr-May Ø  CIL cancels pacts with 60 captive power units, 2 utilities

   (Click on link to view article)

Thanks and Regards

IFIN: IFCI Financial Services Limited

RBI Policy by Motilal Oswal

Rates unchanged (vs. wide consensus of 25bps cut): This came as a negative surprise. Also, kept growth estimates same (GDP 7.3%, Infl 6.5%). Headline inflation remain above levels of RBI, retail inflation on uptrend (even if core inflation has trended down), frontloaded policy rate cut in April with 50bps, but nothing done on supply side and more factors than rates contribute to investment slowdown.

RBI would want the government to act on oil prices and investment climate to make environment more growth conducive. Falling OIL prices surely get offset by weak INR, but still could make case for rate cuts going fwd.

With imp changes in Delhi, a new FM can create some positive activity along with moderated OIL prices. Growth numbers will remain very weak for next few data releases. These would be an important criteria for RBI in its next meet on July 31st (odds will keep on rising for a rate cut then).