‘Price drop in Mumbai inevitable’ ::Business Line

Developers will have to cut prices to reduce inventory, says a Knight Frank study.

The residential real-estate market in Mumbai stagnated in 2011-2012, as buyers put off purchases on hopes of a drop in prices in the near future.

According to Knight Frank Research’s study of the residential market for June, the wait could pay off.

An insight into forex reserves ::Business Line

Forex reserve represents the amount of foreign currency deposits, gold reserves, and International Monetary Fund’s SDRs (Special Drawing Rights) that a country’s central banks possess.

Just as individuals hold deposits in terms of currency, gold, and other assets as a part of their savings portfolios, countries hold forex reserves as their (international) savings portfolio. In that regard, such reserves, as the name suggests, provide a security to countries in times of financial or international emergencies.

Currency reserves and gold, in general, are a result of trading operations such as imports and exports (of goods and services) and investment flows.

SDR refers to a “potential claim on the freely usable currencies of the IMF members”. IMF members could exchange their currencies for SDRs either through voluntary exchange or by IMF’s mandate in certain situations.

Goldman Sachs - Asset allocation

Goldman Sachs - Asset allocation

Automobile Sector Monthly Update – June 2012: Angel Broking

For June 2012, automakers posted poor volumes, largely on the expected line, amid slowdown in economic activity and negative consumer sentiments fuelled by higher inflation and increasing cost of ownership. The slowdown in demand is now clearly evident across most product segments (ex. LCV and UV), which continues to impact overall growth. Among auto majors, Mahindra and Mahindra (MM, automotive division) and Maruti Suzuki (MSIL) reported better volumes defying the overall slowdown; however, Tata Motors (TTMT), TVS Motor (TVSL) and Bajaj Auto (BJAUT) registered poor performance during the month. Going ahead, while we expect LCV and UV sales to sustain their growth momentum, sales of the two-wheeler, passenger cars, medium and heavy commercial vehicle (MHCV) and tractor segments are expected to remain under pressure.

Goldman Sachs -Policy risks dominate

Goldman Sachs -Policy risks dominate

Morgan Stanley - Still Risks_ but Better Priced

Morgan Stanley - Still Risks_ but Better Priced

Goldman Sachs -US Growth in Low Gear

Goldman Sachs -US Growth in Low Gear

India Strategy -Consensus vs. Us: A Less-bearish Consensus:: Morgan Stanley Research,

What's new
The sell-side consensus rating has improved to a five- month high point. MS analysts and consensus disagree on 50% of the MS covered stocks. More important, consensus has a buy or an equivalent rating for 68% of the MS covered stocks while MS analysts have a buy or an equivalent rating for only 42% of the MS covered stocks. MS analysts appear to be more bearish than consensus. The table below highlights the strongest contrarian plays.

DBS - IMAGINING ASIA 2020

DBS - IMAGINING ASIA 2020

Stock Strategy: RCom, Sun TV to remain under pressure ::Business Line

 

BHEL- Decent FY12 Operating Performance :: Sushil

Decent FY12 Operating Performance
BHEL posted Consolidated Revenues of Rs. 475,990 mn (including other operating income), registering a growth of 13.7% YoY. Despite 380 bps increase in RM cost, its EBITDA increased by 15.7% YoY to Rs. 91,951 mn and EBITDA margins improved 30 bps to 19.3%. The margin improvement was mainly due to containing the manpower cost at lower level and ~9% drop in other expenses. Its interest cost reduced by 5.9% YoY to Rs. 531 mn, while the depreciation increased by 47% YoY to Rs. 8,032 mn. Its PBT (including other income) increased by 14.4 YoY to Rs. 103,672 mn and its APAT stood at Rs. 70,873 mn, registering a growth of 17.2% YoY.

Hit by rupee dip, ultra rich no longer shopping abroad: Report ::Business Line

Rupee depreciation has hit the overseas shopping spends of households with Ultra High Net-worth Individuals . These are households with a minimum average net worth of Rs 25 crore accumulated over the last ten years, and who invest their surplus income in various asset classes including debt, equity, commodities and currency.

The increasing availability of global brands domestically is prompting them to shop in India, says the Kotak Wealth – Crisil 2012 report. This is a reversal of last year when ultra HNIs shopped mainly abroad. However, HNIs in non-metros still prefer to shop overseas, said the report. There has been a 50 per cent increase in the inclination to spend towards apparel and accessories.

MERCATOR : BUY TARGET PRICE: RS.34 :: Kotak Sec

MERCATOR LIMITED
PRICE: RS.21 RECOMMENDATION: BUY
TARGET PRICE: RS.34 FY12E P/E: 8.3X
We recently interacted with the management of Mercator to get an update
on the latest developments in the business areas of Mercator Limited. The
stock has fallen 52% in the last one year despite efforts of the company to
diversify the business of the company as a hedge against the poor
performing shipping segment. Company currently has diversified into
mining and has 3 mines in Indonesia with an estimated reserve of 75 mn
tonnes. It also has a Floating and Production Unit (FPU) and two oil blocks
in Cambay basin in Gujarat in the offshore sector. We believe the coal and
the offshore segment would drive the top line and profitability in FY13E
with contribution of coal (mining and trading) increasing from 47% in FY11
to 62% in FY13E. We also expect the IPO of Oorja Holding (mining business)
to come by FY14E after the business has achieved some scale and would be
value accretive. Management indicated that the shipping segment would
continue to go through a bad phase atleast for the next 3 to 4 quarters. We
believe the fall in stock price, strong performance of the coal and offshore
segment and IPO of Oorja holding offers an attractive opportunity for
investors to participate in the story which also has the backing of the value
of shipping assets.
We re- iterate BUY on the stock with a target price of Rs 34 for the stock.
Our target price is based on SOTP value of the different segments:
Shipping= Rs 19: Mining = Rs 12 and Offshore = Rs 3. Downside risk to our
call includes: 1) Further deterioration of the shipping market, 2) Fall in coal
prices and crude price and 3) High leverage.

8 Jul: Reliance Industries, Tata Steel, Infosys, SBI: Technicals ::Business Line

Ambuja Cements Demand to rise, but delay in start of new projects a concern; Hold :: Anand Rathi

A management meet with Ambuja indicates a positive outlook on
company prospects. Cost rationalization and capacity bottlenecks are
immediate focus areas. We retain a Hold rating given steep valuations.

INDEX OUTLOOK - FII flows boost stocks ::Business Line

Health cover for seniors ::Business Line

In sickness and in health: A look at key insurance aspects to keep in mind in order to maximise benefits.

Having slogged all through your work life, you may have accumulated a nice pile of money that you believe will take care of your retired life. But have you thought of how quickly that pile can be wiped out by medical emergencies?

If you haven’t considered this important aspect, this is the right time to take a health insurance policy to protect yourself and your spouse.

Here we discuss the key aspects of a health insurance policy for senior citizens. We look at the options available, premiums that need to be paid and important policy aspects that you must be aware of, in order to reap the maximum benefit.

Key points pertaining to pre-existing illnesses, sub-limits to each aspect of treatment and concepts such as co-payment and loading of premiums are also discussed.

Lupin --Positive Developments In Oral Contraceptive Space::, Nirmal bang,

Positive Developments In Oral Contraceptive Space Lupin has received approval from the USFDA for its generic norgestimate and ethinyl estradiol tablets (brand name: Orthotri-cyclen Lo; dosage: 0.18mg/0.025mg, 0.215mg/0.025mg, 0.25mg/0.025mg; market size: US$421mn; indication: oral contraceptive). In another development, a US district court has invalidated Teva’s ‘969 patent on generic levonorgestrel and ethinyl estradiol (brand name: Seasonique; market size: US$60mn; indication: oral contraceptive) and ruled in favour of generic players (Lupin and Mylan). Both these developments, while positive, will not have any immediate financial impact on Lupin. We retain our Buy rating on Lupin with a target price of Rs633.

Federal Bank - BUY ::Business Line

Morgan Stanley -EM Macro Strategy

Morgan Stanley -EM Macro Strategy

52-WEEK BLOCKBUSTER: ZYLOG SYSTEMS ::Business Line

Health cover: All under one umbrella ::Business Line

One could take a group medical cover for his/her immediate family and add parents as beneficiaries.

You are a senior citizen and would like to insure your medical costs. Apart from taking health insurance, there is another way to cover yourself and your spouse.

Your son or daughter could take a group medical cover for his/her immediate family and add you and your spouse as beneficiaries. That way, all of you would come under a single medical cover.

VA Tech Wabag - BUY ::Business Line

52-WEEK FLOP: IL&FS ENGINEERING ::Business Line

You’ve to e-file returns if earning over Rs 10 lakh ::Business Line

The Central Board of Direct Taxes has widened the scope of mandatory e-filing of income-tax returns.

Any individual or a Hindu Undivided Family (HUF) with total income exceeding Rs 10 lakh in a financial year will have to e-file tax returns, the CBDT has said.

Shoppers Stop - HOLD ::Business Line

Market View: Leverage levels decline for companies ::Business Line

Corporate India continues to score well over emerging market peers and the rest of the world on two parameters: return on equity and lower earnings cyclicality. The former reflects domestic companies’ efficiency in capital utilisation and better demand/pricing mix.

Confidence in corporate India is also strengthened by the following: leverage levels have declined compared with the past; more than 130 companies in CNX 200 are generating more profits than they did in the financial year 2008, which was a higher growth year across sectors; over the last three fiscal years, CNX 200 companies reported 65 per cent increase in book value.

In contrast, the index has risen by 1.8 per cent between 2008 and now, clearly reflecting valuation gap. - Franklin Templeton India Mutual

Gold is not a safe haven ::Business Line

There is a common perception that in times of financial stress, gold prices increase as funds move to the safer gold investment. But, 17 per cent of the time when there was a negative equity return (monthly returns of US stocks) there was a negative gold return too.

Gold prices have risen five-fold in the past decade. Recent surveys have shown that proportion of investors who consider gold as the best long-term investment when compared to real estate, stocks and bonds. But is it really a good hedge against inflation, currency fluctuation and economic uncertainties?

Claude B. Erb and Campbell R. Harvey through their amazingly comprehensive research paper on gold titled The Golden Dilemma try to answer these questions.

Morgan Stanley -Strategy Forum

Morgan Stanley -Strategy Forum