IT COMPANIES TIE UP WITH SMALL CITY CAMPUSES TO CUT COST

Shikha Sharma, a second-year engineering student from Sachdeva College, near Chandigarh, earns from her institute while she learns. The college pays her Rs 5,000 every month for developing applications for local information technology firm, Drona Edutronics. Besides her 'salary', Sharma will also earn a share of the IT company's net profit.
Her institute has signed an MoU with the company, wherein 20% of the revenues generated by projects on campus goes to the college. Small and mid-sized technology and manufacturing firms are entering into similar arrangements with engineering colleges across tier-I and II towns in an attempt to bridge the yawning skill gap.
"Such projects help companies to identify bright talent, give them exposure to their culture, train them and then hopefully attract them," says Nimesh Mehta, a researcher at Indian School of Business' Dr Reddy's Cell for Employability and Skill Development.

Read more

Mahindra & Mahindra says tractor sales to drive into negative terrain in Q1

The country's largest farm equipment manufacturer Mahindra & Mahindra today said tractor sales are going to whiteness a negative growth in the first quarter.
"Tractor sales growth is expected to be around 5-6 per cent this year. The first quarter will see some degrowth, the second quarter will be about-even. But the second half will see growth of about 5-6 per cent," M&M president, automotive business, Pawan Goenka told reporters here at a post-earnings press conference.

Read more

Indian Growth is at Weakest in 9 Years

"Urgent and bold steps are immediately needed to prevent the economy from descending into a full blown crisis. This must be averted at all costs," said Rajiv Kumar, secretary-general of the Federation of Indian Chambers of Commerce and Industry.
The economy grew 5.3 percent in the last quarter from a year earlier, a sharp slowdown from 9.2 percent growth in the last quarter of the previous year, government data showed. Finance Minister Pranab Mukherjee blamed the poor performance of the manufacturing sector, which shrank 0.3 percent from a year earlier, for the slowdown.
The data was released as the rupee plunged to yet another record low and protesters took to the streets across India to demand the scrapping of a steep petrol price hike announced last week.

Read More 

Euro's Survival At Risk

The European Commission's top economic official, Olli Rehn, warned that the single currency area could disintegrate without stronger crisis-fighting mechanisms and tough fiscal discipline.
The twin warnings came as worries about Spain's banks and Greece's survival in the euro area pushed the euro to a two-year low against the dollar and hastened a rush into safe-haven assets such as Austrian and French bonds, whose 10-year yields hit a euro-era low.
Spaniards alarmed by the dire state of their banks moved money abroad in March at a faster rate than at any time since records began in 1990, official figures showed.
The 66.2 billion euros ($82.0 billion) net capital flight occurred before the nationalization of Spain's fourth biggest lender, Bankia, in May due to massive losses from a burst property bubble.
Read More

Facebook rise 5% after record low

In the last hour of trading, Facebook rose $1.41 to $29.60 on volume exceeding 98 million shares. They closed Wednesday at $28.19.
Earlier, the Menlo Park, Calif-based website won two separate "buy" recommendations from Wall Street banks that didn't participate in its $16 billion initial public offering two weeks ago.
After the close, James Gorman, CEO of Facebook's lead underwriter, Morgan Stanley (NYSE: MS) appeared on CNBC where he denied "any nefarious activity" had taken place both before and after the May 17 initial public offering.

Read more

Mitesh Thacker said If we fail to get past 4950, then Nifty may test 4800 levels

We have very strongly and strangely recovered in the last half hour of the trade to pullback to as high as about 4945. I was thinking that it would be difficult for the market to cross 4940-4950 level. So, may be tomorrow's action would possibly clear my thoughts.

If we fail to get pass 4950 tomorrow then we should after a couple of days of grinding out in a range of 40-50 points, start moving down and test levels of 4800.

We still do not have any signals which indicates that the declining trend is broadly over. The pullback which started at 4800 appears to be over on the intraday chart. So, the structure remains weak but if 4950 is crossed, then I would be slightly surprised. 
Read More 

US Economy Appears Weaker

Economic growth was a little slower in the first three months of the year than first estimated, largely because governments and consumers spent less and businesses restocked their supplies more slowly.

The number of people who applied for unemployment benefits rose to a five-week high last week. And a survey of private companies showed only modest hiring gains last month.

Still, a softer job market hasn't caused Americans to scale back spending. Consumers spent more at retail stores in May than the same month last year, buying more clothes and Mother's Day gifts.

The mostly disappointing data kept the Dow Jones Industrial Average on pace to record its first monthly loss since September. The yield on the 10-year Treasury note sank to 1.56 percent, a 66-year low.

Read More

10-Year Yield Reaches Record Low for Second Day

Treasuries rallied, pushing five-, seven- and 10-year yields to record lows, amid concern the European debt crisis is widening and as data showed the U.S. economic expansion slowed during the first quarter.
Thirty-year bond yields fell to the lowest since December 2008 as U.S. weekly jobless claims exceeded forecasts, stirring speculation that tomorrow’s May employment data may trail estimates. The euro fell to an 11-year low versus the yen, while 10-year yields on German, French, Canadian and Dutch bonds declined to records lows. The Federal Reserve bought $1.8 billion of Treasuries due from February 2036 to August 2041.
“What’s going on is ultimate fear again,” said Joseph Balestrino, a fixed-income strategist for Federated Investors Inc., a Pittsburgh-based money manager that oversees $369.7 billion in an interview on Bloomberg Television’s “Inside Track” with Erik Schatzker. “It’s hard for us to want to buy government bonds at these levels. How low it can go is really hard to say because we’ve never been here before. This is not rational.”
The benchmark 10-year yield fell five basis points, or 0.05 percentage point, to 1.57 percent at 12:34 p.m. New York time. The 1.75 percent security maturing in May 2022 gained 15/32, or $4.69 per $1,000 face amount, to 101 20/32.
Read more

Asian Stocks, Oil Fall

Asian stocks tumbled toward the biggest monthly drop in more than three years, while U.S. bond yields fell to a record low as divisions widened over solving Europe’s debt crisis. European equity futures rose.
The MSCI Asia Pacific Index lost 0.6 percent as of 7:01 a.m. in London, set for a 10 percent monthly decline. Futures on the Euro Stoxx 50 Index advanced 0.2 percent, while those on the Standard & Poor’s 500 Index rose 0.3 percent. Yields on 10-year Treasuries slid as much as 3 basis points to 1.59 percent, while similar-maturity Australian debt fell below 3 percent for the first time. The yen reached the highest in more than three months against the dollar
Read more

JPMorgan sells $25 bn of profitable securities

NEW YORK: JPMorgan Chase & Co has sold an estimated $25 billion of profitable securities in an effort to prop up earnings after suffering trading losses tied to the bank's now-infamous "London Whale," compounding the cost of those trades.
CEO Jamie Dimon earlier this month said the bank sold corporate bonds and other securities, pocketing $1 billion in gains that will help offset more than $2 billion in losses. As a result, the bank will not have to report as big an earnings hit for the second quarter.

Data Shows Ruppee Going To Fall Further

Aban Off-shore falls on Q4

Aban Offshore drops 2.5 percent to 357.40 rupees after reporting net profit in the Jan-March quarter fell to 805.3 million Indian rupees ($14.35 million) from a year ago.  Macquarie downgrades the operator and provider of ships, vessels, and rigs to "underperform" from "neutral" and cut its target price to 320 rupees from 473 rupees, citing Q4 results, "high-risk exposure" to Iran and debt issues as main reasons.

Air India Pilot Squabbles Mar 787 Debut

Air India Ltd. is set to receive its first Boeing (BA) Co. 787 this week as a pilots’ dispute over who should fly the aircraft triggers cuts in international services and more than 100 dismissals.

A team is already in the U.S. for the handover, which will follow the government giving final approval for a method of pursuing compensation for delivery delays, Civil Aviation Minister Ajit Singh said in New Delhi today. Air India plans to start using the jet with services to Melbourne, he said May 25.

“The induction of the 787 should have been a major and positive milestone,” said Binit Somaia, a Sydney-based director of CAPA Centre for Aviation, an industry consultant. “Instead, there is a possibility that the new plane may be temporarily grounded due to human-resources issues.”

“The induction of the 787 should have been a major and positive milestone,” said Binit Somaia, a Sydney-based director of CAPA Centre for Aviation, an industry consultant. “Instead, there is a possibility that the new plane may be temporarily grounded due to human-resources issues.”

Read more

Stock Tip 30-5-2012

SELL NIFTY CMP 4995 SL 5015 TGT 4980 4960 4940

SELL SBIN CMP 2144 SL 2156 TGT 2132 2120 2108

SELL NIFTY SL 5015

MARKET SHOULD CRACK, DON'T BE IN LONG SIDE... OR KEEP STRICT STOP LOSS !!!

Market Radar May 30 2012

   The markets had opened on a positive note tracking minor gains made in the Asian space and thereafter moved up making good gains in the morning session. In the second part of the day we saw markets slipping from the highs to finally close for the day on a flat to positive note. The US futures and European markets were trading with gains which helped markets to remain in green most of the day. The market breadth was positive with 1,360 shares advancing and 1,307 shares declining. Weakness in rupee against dollar towards the end of the day weighed in on the sentiments leading to minor correction from the highs in the equity markets.
    The government today said it cleared 25 foreign direct investment proposals, including that of AIF III of Mauritius and Mumbai based Microqual Techno, worth Rs 2,973.40 crore, which is a positive move on the policy clearing side. Nifty is having resistance at 5034 and 5050 while the support is there at 4974, 4959 and 4936 levels. On the sectoral front, we saw buying in IT, technology, realty and PSU stocks while selling was seen in FMCG, consumer durable, healthcare and capital goods.
 
Read more

Top-Quality Assets Dollar Shrink 42%

The dollar is proving scarce, even after the Federal Reserve flooded the financial system with an extra $2.3 trillion, as the amount of the highest-quality assets available worldwide shrinks.
From last year’s low on July 27, the greenback has risen against all 16 of its major peers. Intercontinental Exchange Inc.’s Dollar Index surged 12 percent, higher now than when the Fed began creating dollars to buy bonds under its extraordinary stimulus measures at the end of 2008.
The dollar is proving scarce, even after the Federal Reserve flooded the financial system with an extra $2.3 trillion, as the amount of the highest-quality assets available worldwide shrinks.
From last year’s low on July 27, the greenback has risen against all 16 of its major peers. Intercontinental Exchange Inc.’s Dollar Index surged 12 percent, higher now than when the Fed began creating dollars to buy bonds under its extraordinary stimulus measures at the end of 2008.

Read more

Facebook Shares Below $29

Facebook shares fell to a new low, extending losses from the worst-performing large initial public offering during the past decade to more than 24 percent.
The stock fell 9.6 percent to $28.84 in New York, below the prior low of $30.94 on May 22. Facebook debuted on May 18 after underwriters sold shares at $38. Facebook options trading began today, with volume for puts exceeding calls by 1.2-to-1, data compiled by Bloomberg show. More than 200,000 puts giving the right to sell traded.
fell to a new low, extending losses from the worst-performing large initial public offering during the past decade to more than 24 percent.
The stock fell 9.6 percent to $28.84 in New York, below the prior low of $30.94 on May 22. Facebook debuted on May 18 after underwriters sold shares at $38. Facebook options trading began today, with volume for puts exceeding calls by 1.2-to-1, data compiled by Bloomberg show. More than 200,000 puts giving the right to sell traded.

Read more

Tata Motors Q4 net doubles on growth at JLR, tax credit

Tata Motors fourth quarter consolidated net profit more than doubled year-on-year to Rs 6,234 crore as continued strong growth at luxury Jaguar Land Rover unit coupled with an exceptional gain helped cushion domestic speed bumps.

The company had tax credit of Rs 1,826 crore in Jan-March in its subsidiary company. Tata Motors' profit before exceptional items and tax surged 68% to Rs 4,596 crore in the quarter.

Its consolidated revenue for the fourth quarter was up 44% to Rs 50,908 crore.

Analysts on average were expecting a net profit of Rs 4,200 crore on revenue of Rs 50,400 crore, according to a CNBC-TV18 poll.

JLR sold 98,021 units in Jan-March, up 48% from a year ago, driven by new products like Evoque SUV, which has sold 60,217 units till March-end.

It is also seeing strong sales in new markets like China, which accounted for 19% of the total volumes in Q4, said Ralph Speth, JLR's CEO.

Read more

India Q4 GDP growth seen flat at 6.1%, YoY: Reuters poll

India's annual economic growth probably held steady in the January-March quarter at 6.1% and the global economic slowdown, government policy paralysis and a record low currency suggest little chance of a pick up in the current quarter.

A poll of 31 economists produced a median forecast of 6.1%, unchanged from the growth of the October-December quarter. Forecasts ranged from 5.5% to 7.3%.

While 6.1% would be the envy of most developed nations, it is the lowest growth rate for India in almost three years. Growth slowed for seven successive quarters through the three months ended December 2011.

"Growth is constrained because of three main factors," said Leif Eskesen, economist at HSBC.

"Lax affects of monetary tightening, the spillover to domestic sentiment because of the weak global economic backdrop which is also hurting exports. And thirdly the persistence of policy paralysis is also hurting investor sentiment and that is of course hurting the investment cycle."

Read more

ONGC Q4 net more than doubles to Rs 5644c

State-owned Oil and Natural Gas Corp (ONGC) today reported more than doubling of its net profit in March quarter as rupee depreciation helped offset a steep rise in fuel subsidy outgo.

Net profit in January-March quarter rose to Rs 5,644 crore from Rs 2,791 crore a year ago, ONGC Chairman and Managing Director Sudhir Vasudeva told reporters.

ONGC paid Rs 14,170 crore for subsidising diesel, domestic LPG and kerosene as against Rs 12,136 crore outgo in Q4 last fiscal.

The subsidy outgo was made good by rupee depreciation - from Rs 47.95 to a US dollar in Q4 2010-11 to Rs 50.29 to a US dollar in same period of 2011-12 fiscal.

"Every rupee depreciation against US dollar, increases our topline by about Rs 1,600 crore," ONGC Director (Finance) A K Banerjee said.

ONGC gets paid for both crude oil and natural gas it produces in US dollar and rupee depreciation is a bonanza for it.

read more

Morgan Stanley downgrades RComm, Idea Cellular

Morgan Stanley has downgraded its view on India's telecom sector to "in-line" from "attractive", citing increased regulatory risks tied to the spectrum auction, and "relatively weaker" 3G outlook.

The brokerage has cut its rating on Reliance Communications to "underweight" from "equalweight", and slashed its target price to Rs 51 from Rs 109, citing a weaker balance sheet and saying the company faced the highest regulatory risk.

Morgan Stanley has also cut Idea Cellular to "equalweight" from "overweight", while reducing its target price to Rs 87 from Rs 134, citing its smaller balance sheet and a 32% outperformance in the last twelve months.

Read more

Hexaware will become a billion dollar company

The mid-tier technology services companies, which have largely lived in the shadows of the large tier-1 services providers look set to break free now. Recent performance by companies like Hexaware Technologies, a mid-tier player, points to a growth trajectory that could potentially outstrip industry body Nasscom's muted guidance for the year. In an e-mail interview with ET, Atul Nishar, chairman, HexawareTechnologies, talks about scaling up the business, client concentration risks and more. Edited excerpts:

What kind of demand do you see in the market? Post-recession, what kind of changes do you see in client requirements?

Hexaware is a multi-niche service provider and not a generalist. We continue to see good traction in our areas of strength pertaining to both verticals and horizontals.

Read more

Rupee's fall will not last long Prime Minister

Dismissing any comparison with the 1991 external debt crisis, Prime Minister Manmohan Singh on Tuesday said that the fall of rupee is a matter of concern but was confident that it will not last very long.

 He said that the rupee depreciation was taking place against the backdrop of the global economic problems and the Euro zone debt crisis and expressed optimism that solutions will emerge at the G-20 Summit in Mexico next month.

Read More

Market status

The frontline Indian equity benchmarks are trading near their best levels for the session in the afternoon trade, spurred by sustained strength in select index heavyweights. The NSE Nifty is trading just above 5,000 while the BSE Sensex is hovering around 16,500. The gains in the Indian equities are continuation of the spurt seen in the past few sessions after a fall below 4,800 in the Nifty.

Also, the undertone is being fueled by healthy gains in other Asian markets. There is speculation that China will take steps to boost growth in the world’s second-largest economy. China’s finance ministry said that it will allocate as much as 2 billion yuan ($317 million) every year to support purchases of energy-efficient cars.
Read more

African Billionairs

 Forbes magazine's latest listing of billionaires reveal the facts about African millionaires/billionaires.

Read more

Religare Q4

Religare’s fourth quarter and full year (FY12) make for some interesting reading. The financial services firm which is into broking, investment banking, advisory, and lending, reported a net profit of Rs 101.32 crore for the March quarter, even though the bottomline for the full year continued to bleed (Rs 149 crore loss vs Rs 294 crore loss). Religare’s fourth quarter performance was driven mainly by its NBFC business. That has been the case with most brokerage firms, which now earn a big chunk of revenues from their lending operations. But while Religare’s peers have chosen to go a bit slow on growing their loan book, Religare has taken a different approach. Its loan book grew 35% to Rs 10,700 crore, with loans to small and medium enterprises growing 45% to 8400 crore.


Read more

Cipla medicine rate cut

Cipla 's shocking 75% price cut of three cancer drugs on Thursday is unlikely to have a major impact on the pharma major's earnings, analysts say.

Cipla cut price of its kidney cancer drug Sorafenib, which is sold under brand name Nexavar by multi-national Bayer to Rs 6,840 for a month's supply, from around Rs 28,000 earlier. Its lung cancer drug Gestinib, which is sold under brand name Iressa by AstraZeneca will cost Rs 4,250, versus Rs 10,200 earlier, and price of Temozolamide used to treat brain tumour, has been reduced by Rs 15,000 to Rs 5,000.

Cipla medicine rate cut

Tata Nano Diesel

Tata Nano diesel launch may still be far away despite possibility of being launched in 2012, reports Swati Khandelwal Jain of CNBC-TV18.

Tata Motors is facing hurdles as far as their vendor support is concerned and this is clearly because vendors have taken a hit on profitability on account of their supplies on petrol variant and they are not too upbeat about diesel.

Currently, the total sales of petrol Nano stands at 7,000 units a month compared to anticipated 25,000 units. After this setback vendors are taking diesel launch in a more sensible manner. Vendors don’t want to set up their capacity, which Tata’s according to our sources are expected to do about 2.5 lakh units per annum

Read more

Bail for Loop-Essar accused, hearing on 27-28 Jul: 2G case

Vikas Saraf has been named as the main accused in Loop-Essar case. The court framed charges of Section 420 against Saraf, and those relating to Section 120 were framed against the rest. Meanwhile all five individuals accused were granted bail, reports CNBC-TV18's Malvika Jain.

Charges have been framed against all the eight accused who have been named in the second supplementary chargesheet filed by the CBI in the 2G scam case. Saraf has been charged with a substantive offence under section 420 on charges of cheating. He has also been charged with criminal conspiracy. So, he has been charged with 120 B read with section 420.

Read more

Experts tell you what to buy or sell now?

Indian market recovered today after a very poor performance last week. The market gained some strength today on an improved global risk sentiment and some buying in financial stocks such as top lender State Bank of India.

The BSE Sensex rose 199.02 points to close at 16416.84 while the Nifty ended at 4,985.65 gaining 65.25 points.

The gainers of the day are SBI (up 4.8%), ICICI Bank (up 2.6%), while Reliance Industries ended up 1.42%.

Read more...

Rupee fall won't hurt India's ratings: Moody's

Moody's Investors Service says the depreciating rupee will only have a "limited" impact on India's sovereign ratings, as only 7% of total government debt is placed overseas, comprising 5% of gross domestic product.
The bigger pain would come in the private sector, Moody's said in a weekly credit report out on Monday, given that a falling rupee will raise the cost of paying back foreign currency borrowings.

Read more