The removal of the export parity pricing threat may help the OMC stocks near term :: Credit Suisse

● Media articles over the last few days have carried reports on the
likely recommendations of the Dr. Kirit Parikh committee on fuel
pricing in India. These suggest the committee may recommend
trade parity pricing of fuels be continued, contrary to expectations.
● In addition these also suggest the monthly increment in diesel retail
prices may be increased to Rs.1–1.5/ltr, and that upstream
companies pay 85% of profits made on crude as subsidy. There is a
risk that these media reports are incorrect, or that recommendations
are changed before publication, and around report acceptance.
● We estimated (here) that the IOC/BPCL/HPCL stocks are pricing in
the impact of export parity pricing by trading at 0.2–0.3x core book.
If this is taken off the table, there may be a near-term stock relief
even though FY14 RoE remains dependent on govt. payments.
● Any impact on upstream will depend on adoption of the new payment
formula, and the calculation of crude production costs. Back of
envelope calculations suggest net realisations for ONGC should not
change much. Clarity on payments can help multiples expand. In this
space, we have OUTPERFORM ratings on ONGC, BPCL and GAIL.

Tax Free Bonds Issuances - 2013-14 : 13 tax free offerings expected this year!

Central Board of Direct Taxes (CBDT) vide Notification dated 8^th August 2013 authorises the entities mentioned in table below, to issue, during financial year 2013-14, Tax Free, secured, redeemable, non-convertible bonds, aggregating to Rs.48,000 crore.

Sr. No.	Entities	Allocated Amount Rs. Cr.
1	Cochin Shipyard Ltd. (CSL)	250
2	Ennore Port Ltd. (EPL)	500
3	Airport authority of India Ltd. (AAI)	500
4	Indian Infrastructure Finance Co. Ltd. (IIFCL)	10,000
5	Indian Renewable Energy Development Agency Ltd. (IREDA)	1,000
6	Housing and Urban Development Corporation Ltd. (HUDCO)	5,000
7	Rural Electrification Corporation Ltd. (REC)	5,000
8	National Housing Bank (NHB)	3,000
9	Power Finance Corporation Ltd. (PFC)	5,000
10	Indian Railway Finance Corporation Ltd. (IRFC)	10,000
11	National Highways Authority of India (NHAI)	5,000
12	NHPC Ltd.	1,000
13	NTPC Ltd.	1,750
	Total Rs. Crore	48,000

Q2 gold imports crash to less than a fourth ::Business Standard

Tight controls on gold imports by the Reserve Bank of India and the government seem to be yielding results. Imports of gold for the quarter ended September fell by over 77 per cent in value and 28 per cent in volume, according to finance ministry data.

At 12-15 tonnes, the imports in September are estimated to be much lower than in the same month last year. The overall import bill for the July-September quarter on account of gold will be $2.7 billion as against $11.9 billion in the same period last year. That should help keep the current account deficit under control.

The biggest reason for the sharp fall in imports in the quarter has been the restrictions imposed by the RBI. The central bank had said at least 20 per cent of gold imports should be for export purposes and jewellers could not get any financing for buying gold. Getting gold on lease was also prohibited.

Over the last two months, imports were virtually halted as there were several procedural ambiguities, which have been clarified now. Over the past few days, three-four tonnes of gold has been imported. A jeweller said on the condition of anonymity, “We were still getting gold entering the country through unofficial channels.”

The industry estimates that during the quarter over 40 tonnes of gold entered the country through unofficial channels as the 10 per cent import duty made the risk worthwhile for smugglers and carriers who bring the metal on someone else’s behalf.

Going forward, gold availability for the domestic market could remain limited. An office bearer of the Gem and Jewellery Export Promotion Council said he was expecting 200 tonnes of imports in the next two quarters, of which 20 per cent could be exported back. However, traders say the 10 per cent import duty will keep the attractiveness of smuggling intact.

Even as gold imports have come down, those of silver have been rising sharply. In the whole of the last calendar year, India imported 1,900 tonnes of silver. In the September quarter this year, silver imports have been estimated around 1,500 tonnes. Industry experts say several gold traders have shifted to silver after the restrictions imposed on gold imports.��

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IIFCL Tax Free - Issue Brief- Term Sheet- Opening on October 03, 2013

Please find attached the Final Product Note - " Public Issue of Tax Free Secured Redeemable Non-Convertible Bonds by India Infrastructure Finance Company Ltd."  (Source: Shelf Prospectus & Prospectus Tranche I dated September 28, 2013)  : 

Issue Timing:
1.    Issue Opening Date         October 03, 2013
2.    Issue Closing Date           October 31, 2013  

  

Issue Size:
1.         Rs. 500 crores with an option to retain oversubscription  upto  Rs.2000 crores  aggregating upto Rs.2500  crores
2.        Face value of each Bond shall be Rs. 1,000/- and the minimum application size shall be for 5 bonds and in multiples of 1 Bond thereafter
 
Yield Offered:
 

Options	Series of Bonds*
	For Category I, II & III**
	Tranche I Series 1A	Tranche I Series 2A	Tranche I Series 3A
Coupon Rate (%) p.a	8.01%	8.38%	8.50%
Annualised Yield (%) p.a	8.01%	8.38%	8.50%
Options	For Category IV**
	Tranche I Series 1B	Tranche I Series 2B	Tranche I Series 3B
Coupon Rate (%) p.a	8.26%	8.63%	8.75%
Annualised Yield (%) p.a	8.26%	8.63%	8.75%
For Category I, II, III & IV**
Maturity / Redemption Date	10 years from the Deemed Date of Allotment	15 years from the Deemed Date of Allotment	20 years from the Deemed Date of Allotment
Redemption Amount (Rs./Bond)	Repayment of the Face Value plus any interest at the applicable Coupon/ Interest Rate that may have accrued at the Redemption Date
Coupon/ Interest Type	Fixed Coupon Rate
Coupon / Interest Payment Date	The date, which is the day falling one year from the Deemed Date of Allotment, in case of the first coupon/ interest payment and the same day every year, until the Redemption Date for subsequent coupon/ interest payment
Coupon/ Interest Reset Process	Not applicable
Frequency of Coupon/ Interest Payment	Annual

  

11.75% Interest - Shriram Transport NCD

A public issue of NCDs for Rs.500 Crores from Shriram Transport Finance Company Limited - India's largest asset financing Institution.

Very attractive interest rates of up to 11.75% for 7 years, 11.50% for 5 years & 11.25% for 3years. Interest payment - Annual & Cumulative. NO TDS, for any investment amount ONLY if applied in Demat route. "CARE AA+" rating by CARE & "CRISIL AA/Stable" rating by CRISIL. Listing at NSE & BSE. Trading only in Demat route.

Issue opens on 07/10/2013. Allotment is on "First Come First Serve" basis.

Morgan stanley - All Eyes on Houston

http://www.docstoc.com/docs/161333224/Morgan-stanley----All-Eyes-on-Houston

Morgan Stanley - What the Data Say – European Edition_ August 2013

http://www.docstoc.com/docs/161333307/Morgan-Stanley---What-the-Data-Say---European-Edition_-August-2013

Barclays Capital - Back to front again

http://www.docstoc.com/docs/161333046/Barclays-Capital----Back-to-front-again

Morgan Stanley -Geopolitics Back in Focus

http://www.docstoc.com/docs/161333254/Morgan-Stanley---Geopolitics-Back-in-Focus

Franklin India Bluechip: Invest :: Business Line

Why Indian mutual funds don't have 'star managers':: Morning Star

Fund companies deny the existence of 'star managers' to understate key man-risk; investors on their part, must evaluate if the fund remains as good a bet, sans its 'star'.

An oft-repeated phrase in the Indian mutual fund industry is "we don't have a star manager culture; instead we follow a team-based, process-driven investment approach".

Fund companies avoid the term 'star manager' like the plague. They never miss an opportunity to proclaim the presence of a strong team and investment process.

But are the latter and 'star managers' mutually exclusive? More importantly, what is so revolting about being a 'star manager'?

Think about it: Isn't a 'star manager' only like any other professional who excels at her/his work?

For instance, an equity fund manager who has consistently delivered an impressive showing over the long haul and across a market cycle, and who displays a sustainable level of skill should qualify as a 'star manager'.

That isn't necessarily bad, is it? To draw a cricketing analogy -- is having Sachin Tendulkar in the team a disadvantage, simply because he ranks among the best batsmen in the world?

‘Short-term bond funds, FMPs look good for one year’ : FUND MANAGER AT UTI MUTUAL FUND: Business Line

Reduction in the MSF rate has resulted in a fall of 50 to 75 basis points in interest rates on less than one-year borrowings. SUDHIR AGARWAL, FUND MANAGER AT UTI MUTUAL FUND

The RBI’s moves on interest rates and Ben Bernanke’s taper decision have roiled debt markets. Where must investors put their faith?Business Line had a quick conversation with Sudhir Agarwal, Fund Manager at UTI Mutual Fund to find out:

With the RBI unlikely to cut interest rates, what stance will debt fund managers will take on their portfolios now? Will they lengthen maturity once again? What are the average maturities on UTI funds and how will they change post policy?

After the repo rate hike, we will be cautious. There is still some confusion in the market on whether this is the start of a series of rate hikes or just a one-off step. Till the time we get more clarity, we would like to keep average maturities at low levels.

How do you expect the reduction in the rates on the marginal standing facility to impact returns from short-term bond funds?

Reduction in MSF rates is expected to result in steepening of the yield curve which will help in reduction in short-term yields. This will be most beneficial for funds like short term bond funds. They may outperform other longer maturity funds on a risk-adjusted basis. In line with this, we are advising our investors to consider investing in short-term income funds.

How will the RBI moves to hike repo rates and reduce MSF rates impact FII flows into debt markets. Will they resume?

We may see some investment demand for three-to-five year debt from a couple of foreign banks against the FCNR money flow. However, FII flows in the debt may be dependant on their view on the currency.

If they are expecting the rupee to stabilise around the current levels or appreciate from here, they may consider investing into the local debt markets again.

Will the reduction ease liquidity pressure on stressed companies and improve credit quality?

Reduction in the MSF rate has resulted in 50 to 75 basis point fall in interest rates on less than one-year borrowings. Before the MSF cut, the money markets had come to a standstill due to the very high short term rates. The recent action on MSF will bring normalcy to the money markets and in turn we may see increased activity by banks and companies in this market.

Is this the time to enter long bond funds and gilt funds once again?

At this point, we are advising our investors to wait before entering or exiting the long bond funds and gilt funds. Once we get more clarity on the RBI stance in the next policy on October 29, we will be able to convincingly spell out the strategy.

Among short-term funds, FMPs and gilt funds, which do you think offer the best return potential for investors over the next one year?

Short-term income funds and FMPs are looking good at this point from a one-year perspective. FMPs are suitable for those investors who are looking to lock in the higher interest rates at this point without intermediate volatility. Short-term income funds, on the other hand, are ideal for an investor who wants to get the benefit of high accrual with some amount of capital appreciation once the MSF rate is cut further.

NSE, BSE closed for Gandhi Jayanti; Next holiday 16-Oct-2013 Wednesday Bakri ID

	02-Oct-2013	Wednesday	Gandhi Jayanti
	16-Oct-2013	Wednesday	Bakri ID
	04-Nov-2013	Monday	Diwali-Balipratipada
	14-Nov-2013	Thursday	Moharram
	25-Dec-2013	Wednesday	Christmas