02 January 2013

FII DERIVATIVES STATISTICS FOR 02-Jan-2013

FII DERIVATIVES STATISTICS FOR 02-Jan-2013 
 BUYSELLOPEN INTEREST AT THE END OF THE DAY 
 No. of contractsAmt in CroresNo. of contractsAmt in CroresNo. of contractsAmt in Crores 
INDEX FUTURES472991423.18346891049.292585417815.08373.89
INDEX OPTIONS38089811481.292995298933.87127272638234.222547.43
STOCK FUTURES22894765.0827849924.2496980231836.85-159.16
STOCK OPTIONS24429741.5025102767.22510611544.47-25.72
      Total2736.43

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FII & DII trading activity on NSE and BSE 02-01-2013

CategoryBuySellNet
ValueValueValue
FII2341.671234.011107.66
DII1271.091688.5-417.41

 


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Cairn - Management Interaction Update - Centrum


Management Interaction Update
Cairn
Buy
Target Price: Rs400
CMP: Rs320
Upside: 25%
We recently interacted with the management of Cairn to get their feedback on ongoing projects. The key highlights are:

‘For young investors, risk-reward favourable for investing in equity’ ::Business Line


Tread cautiously on consumer goods as the risk-reward seems unfavourable.
2012 has seen a 25 per cent gain in the equity market and 50 per cent-plus gains in many stocks. Should investors now sell? We are asking from the standpoint of a young 30-year old investor.
Investments in equity as a proportion of financial savings have reduced considerably in the last five years and it is time for portfolio rebalancing. With macro indicators, including the GDP growth rates, showing signs of bottoming out and structural positive changes in the economy, the visibility of India story doing good over the next 3-5 years is better today than any time in the last few years. From a young investor’s perspective, risk-reward is favourable for investing in equity.
 Could you describe two sectors that delivered very good returns for your funds in 2012?
Private banks and cement have been our top performing sectors for the year. We were quick to read the situation on the ailing banking sector and build positions in private banks, which were retail-focused and hence had considerably less asset quality risks over public sector banks. Cement is another sector which helped us through the year. We liked the sector’s ability to cope with a challenging year through stable pricing and improving profitability.

Tax Talk ::Business Line


My son has paid stamp duty and registration charges in FY 2012-13 for an under-construction flat. The possession is expected in January 2015. Bank loan has been released partly and the EMIs have already begun. Can he avail the benefit of repayment of loan under Section 80c in FY 2012-13?
What about the interest portion?
We need to plan for investment in other avenues, in case he is not eligible under Section 80c.
— R. Rajan

Tax-free bonds: Are you living in the past? ::Business Line


f you are aware of tax-free bonds, you would have most likely invested in the recently concluded offering from Rural Electrification Corporation (REC) and Power Finance Corporation.
Or maybe you did not invest because you were unimpressed with the interest rates offered on these bonds.
After all, REC offered 8.13 per cent on its 10-year tax-free bonds last year compared to 7.72 per cent this year.
But your decision on whether to invest or not in such bonds should not be based on the rates offered in the previous year. Why?
As an alternative to tax-free bonds, you would have most likely invested in bank fixed deposits as it offers higher interest rates.
But you would have to pay tax on the interest income. Assuming you pay a marginal tax rate of 30 per cent, the 7.72 per cent tax-free bonds will be unattractive if bank fixed deposit pays more than 11 per cent pre-tax interest.