NDPMS Wealth Management

As the finance expert from the Oxford University,  Tarun Ramadorai  has found an ideal platform in the Indian stock market to study behavioural pattern of individual investors in emerging markets. Having co-authored the study 'Getting Better: Learning to Invest in an Emerging Stock Market' with John Campbell and Benjamin Ranish, the Professor of Financial Economics, Said Business School, University of Oxford was on a visit to India to speak on the same at the International Finance Conference held at the IIM Ahmedabad. In an interview with  Vinay Umarji  on sidelines of the conference, Ramadorai talks about how individual investors are increasingly opting for delegation of their investment instead of directly investing in stocks and advises investors to avoid trading too much as well as hold diversified portfolio for better returns in the long run.  Excerpts: What has been your observation regarding the trend of retail investors in ...

Key highlights  The Wholesale Price Index (WPI) based inflation surprised negatively during November 2013 by coming in at 7.52% higher than market expectations of 7.00%.   The headline print edged higher as compared to inflation hovering at about 7.00% in three preceding months and 7.24% in November 2012.   During the month, inflation across major components – primary articles, fuel and power and manufactured products has witnessed an uptick as compared to that in the previous month.   Food inflation persisted at an uncomfortably high level of 19.93%, a 41-month high owing to elevated vegetable prices for the fifth straight month.   Inflation for September 2013 has been revised higher to 7.05% from 6.46% reported earlier on upward revision across the major components.   We expect the RBI to hike its policy rate by 25bp in the upcoming policy review on December 18 in light of its continued fo...

NEW DELHI: Sharply higher food prices drove India's annual consumer price inflation to a higher-than-expected 11.24 per cent in November from 10.17 per cent in October, government data showed on Thursday.  Economists in a Reuters poll had estimated consumer inflation for the month to ease to 10 per cent.  Food prices for consumers last month rose 14.72 per cent from a year earlier, faster than a provisional 12.56 per cent annual rise in October.  Source: EconomicTimes

According to provisional data released by the commerce ministry, the trade deficit for November 2013 has narrowed to USD9.2bn as against USD10.6bn in the previous month and USD17.2bn in November 2012 mainly on account of a sharp decline in imports. Imports reported a contraction of 16.4% during November 2013 as against 14.5% in the previous month and growth of 3.5% in November 2012. However, the momentum of strong export performance witnessed over the past four months slowed in November 2013, with export growth at 5.9% as compared to 13.5% in October 2013. The decline in imports for the sixth consecutive month can be attributed to the steep contraction in non-oil imports due to restrictions on gold imports as well as the impact of weak domestic demand in the economy. Non oil imports reported de-growth of 23.7% as compared to 22.8% in the previous month and oil imports came in lower by 1.1% as compared to growth of 1.7% in the ...

Strides Arcolab at its meeting held on December 10, 2013, has approved the a special dividend of Rs 500 per equity share of Rs 10 each to the shareholders of the Company.  Strides Arcolab Ltd has informed BSE that the Board of Directors of the Company at its meeting held on December 10, 2013, inter alia, have approved the following:1. A Special Dividend of Rs. 500/- (Rupees Five Hundred Only) per equity share of Rs. 10/- each to the shareholders of the Company.2. The said Special Dividend will be paid on or after December 27, 2013.In this regard, the Company has issued a Press Release dated December 10, 2013 titled "Update on Agila Transaction".Source : BSE  Source: MoneyControl

Over the past two quarters, Tata Steel has reported strong growth in volumes in the domestic operations despite weak demand. Also, its European operations have been broadly better than expectations over the past three quarters indicating some stability and predictability from its European operations. We maintain our positive stance on Tata Steel as its earnings growth is likely to be driven by a) higher sales volume in FY2014-15 on the back of 2.9mn tonne brownfield expansion project in Jamshedpur and b) steady improvement in profitability of European operations. Source: Angel Broking

AHMEDABAD: Gujarat High Court has directed Oil and Natural Gas Corporation (ONGC) to pay dues worth Rs 5,000 crore to Rs 6,000 crore to the state government towards differences in royalty of crude the PSU has extracted since 2008.   A division bench headed by Chief Justice Bhaskar Bhattacharya and Justice JB Pardiwala yesterday directed ONGC to pay differences in royalty of crude within two months and also pay royalty, henceforth, to state government at market rate ..  Source: Economic Times

Analysts polled by Reuters had forecast growth of 4.6 percent. September's figure percent was the fourth successive quarter of economic growth below 5 percent. The economy grew a higher-than-expected 4.8 percent in the three months through September, helped by an uptick in agriculture and construction, government data showed on Friday.  The economy is struggling to rebound from a long slowdown. Economic growth virtually halved in two years to 5 percent in the fiscal year -- the lowest level in a decade -- and most economists surveyed by Reuters last month expect 2013/14 to be worse. Manufacturing rose an annual 1 percent during the quarter and mining fell by 0.4 percent, the data showed, while farm output rose 4.6 percent.

TCS has bagged a deal from Keler Ltd, Hungary's Central Securities Depository. Under the deal will deploy the market infrastructure solution of TCS BaNCS for modernizing its technology and set up its capability for T2S settlement. However, the financial details were not disclosed. TCS BaNCS solution will provide Keler with a modern, standards compliant, multi-asset, multi-entity solution that will enable it introduce new products and services.  Source: Angel Broking

5 Things You Probably Didn't Know About Warren Buffett by  Patrick Morris, The Motley Fool  Nov 23rd 2013 12:00PM Updated Nov 23rd 2013 12:02PM Warren Buffett, the chairman and CEO of  Berkshire Hathaway  is a household name, and according to Bloomberg, he has an estimated net worth of $59.3 billion, making him the fourth wealthiest person on the planet-- but there are five things you may not know about the affectionately titled "Oracle of Omaha." 1. Harvard turned him down Warren Buffett is rightly characterized as a hometown guy from the Midwest who has a particular affinity for Cherry Coke,  McDonald's , and  See's Candy (all businesses he owns shares of, or has owned in the case of McDonald's) -- but he is also outrageously intelligent. Buffett graduated high school at age 16 and promptly enrolled in Ivy League stalwart the University of Pennsylvania, but transferred closer to home to the University of Nebraska after two years. Upon gradua...

Despite the global downturn, countries such as Hong Kong and Singapore have seen sky-high property price rises, with Singaporean property prices souring around 60 percent in the past three years. Asia-Pacific's booming property markets are reliant on ultra-loose US monetary policy — and prices could plummet by up to 50 percent when the Federal Reserve starts tapering off its asset purchases, a senior economist warned CNBC. "The Asian housing market has become increasingly dependent on U.S. funding. So if there is one property market in the world where you find dependence on what happens next in the Federal Reserve it is a market like Hong Kong," said Steen Jakobsen, the chief economist and chief investment officer at Saxo Bank, who had just completed a week-long trip to Singapore, Indonesia and Hong Kong. Speculation has continued for months as to when the Fed might start scaling back its massive USD 85 billion-a-month bond-buying program, designed to aid the country...

Soaring inflation, high fuel cost, rising cost of education and health insurance premiums have eroded the real incomes of middle-class Indian families, with household savings rates dropping by a staggering 40 percent in the last three years, says an Assocham survey. Soaring inflation, high fuel cost, rising cost of education and health insurance premiums have eroded the real incomes of middle-class Indian families, with household savings rates dropping by a staggering 40 percent in the last three years, says an Assocham survey. "Poor households are unable to maintain the consumption levels at current prices while middle income families find their purchasing power erode fast, thus having far less surplus money," Assocham Secretary General D S Rawat said. The survey found that net financial savings by Indians, which include deposits with banks and non-banking finance companies, cash, investment in stocks, debentures and small savings instruments have dipped considerably becau...

As per Quick Estimates on the Index of Industrial Production (IIP), industrial growth in September 2013 reported growth of 2.0% as compared to marginal 0.4% in the previous month and a contraction of 0.7% in September 2012. The industrial production for September 2013 surprised negatively by coming in much lower than market expectations of 3.5% growth owing to disappointing manufacturing sector data. In terms of sector-wise classification, the Electricity sector reported robust 12.9% growth as compared to 7.2% in the previous month and 3.9% in September 2012. The growth in electricity production (owing mainly to thermal production) has supported the overall index by contributing 1.2% to the overall headline growth print. Going ahead in October 2013 however, owing to the high base during the corresponding month of the previous year, electricity production is likely to clock a modest growth. The Mining sector reported 3.3% gro...

Moneycontrol Bureau Telecom operator Reliance Communications ' second quarter consolidated net profit jumped over six-fold quarter-on-quarter to Rs 675 crore, driven by provision write back. The company, during the quarter, reassessed the requirement of maintaining balance of Rs 441 crore of provision of business restructuring created pursuant to the schemes of amalgamation approved by High Court in financial year 2006-07. The board determined that it is no longer required to maintain provision, hence that amount credited to other income. Consolidated revenues, which were announced after market hours on Tuesday, declined nearly a percent on sequential basis to Rs 5,361 crore in the quarter gone by. Voice revenue stood at Rs 3,384 crore and non-voice revenue at Rs 1,018 crore during the quarter. The company beat on bottomline as well as on operational front, but topline was a miss. According to a CNBC-TV18 poll, analysts had estimated net profit at Rs 108 crore on revenues of Rs 5,...

October Trade Deficit at $10.56 Bn vs $6.56 Bn Gold & Silver Imports at $1.37 Bn vs $.8 Bn (mom) 7.16% 2023 CG Bond Yield trading at 9.0376 up by 0.56%

Moneycontrol Bureau: India's largest commercial vehicle manufacturer  Tata Motors surprised Dalal Street on every parameter on Friday with the second quarter (July-September) consolidated net profit surging nearly 71 percent year-on-year on Jaguar Land Rover boost. However, standalone business continued posting losses amid weak economic environment. "A 31 percent growth in PAT was despite weak environment in India business which was more than offset by increase in wholesale volumes and richer product and market mix at Jaguar Land Rover (JLR)," the company said in its release. Consolidated net profit increased to Rs 3,542 crore during September quarter from Rs 2,074 crore in a year ago period. Revenues increased 31.1 percent year-on-year to Rs 56,882 crore in three-month period ended September 2013. According to a CNBC-TV18 poll, analysts had expected the Tata group-owned company to report net profit of Rs 3,200 crore on revenues of Rs 54,960 crore for the quarter. Dur...

RBI has released the policy framework for foreign banks in India. The policy framework is primarily built upon two cardinal principles of reciprocity and single mode of presence. Currently foreign banks in India are present only through branch mode. RBI has inventivised foreign banks to set up a WOS, by allowing them a near national treatment in branch opening (which was constrained earlier). We need some more clarility on the reciprocity aspect (which is one of the cardinal principle behind these guidelines), barring which we believe that foreign banks would be more than willing to enter/expand in India. Moreover the frameworks also specifies that RBI may allow foreign banks to buy Pvt. banks after it makes a review of functioning of foreign banks and foreign investment in Indian banks, but it should not exceed overall FDI limit of 74% in any private bank. This is a positive development for Private Banks in general (both old...

The Telecom Commission has also approved the M&A policy which menas combined telcos can hold up to 50 percent market share in each circle. However, M&A policy may need Cabinet approval. The Telecom Commission, which met in New Delhi today, has decided to go ahead with 800 MHZ spectrum auction and finalised reserve price for 1800 MHz and 900 MHz spectrums, reports CNBC-TV18 quoting sources. Sources in Department of Telecom (DoT) says reserve price for pan India 1800 MHz spectrum has been fixed 15 percent higher and that for 900 MHZ has been fixed 25 percent higher than than what the TRAI had recommended. However, it is still lower than the previous auction price. The Telecom Commission has also approved the M&A policy which means combined telcos can hold up to 50 percent market share in each circle. While M&A policy may need Cabinet approval, EGoM will decide on spectrum pricing. Following the news, telecom stocks like  Idea Cellular , Reliance C...

San Francisco-based Twitter increased its proposed share-price range to between $23 and $25 a share, up from between $17 and $20 a share. That increases the potential size of the offering to $2 billion from $1.6 billion, assuming underwriters sell all offered 80.5 million shares at the higher price. At the top of the revised range, Twitter would have a market capitalization of as much as $13.9 billion, about 26 times its revenue over the past four quarters. That ratio is slightly above the 21 times trailing 12-months revenue Facebook Inc. FB -3.08% priced its own IPO. Twitter's IPO, scheduled for Wednesday, looks promising but investors shouldn't pay over $30 a share, Barron's Andrew Bary says on MoneyBeat. Twitter could raise the price of its offering once more. Under U.S. securities rules, Twitter could increase the amount of money it will raise by up to 20% without a new filing, either in the form of additional shares, or raising the share price...

Ashok Leyland Ashok Leyland (AL) continued registering poor volume performance, with total sales witnessing a decline of 14.6% yoy to 6,803 units led by the weak demand environment amidst slowdown in the economic activity. While medium and heavy commercial vehicle (MHCV) sales declined by 17.5% yoy; Dost sales posted a decline of 10.6% yoy during the month.  Hero MotoCorp  Hero MotoCorp (HMCL) posted record monthly volumes buoyed by the festival demand and strong traction from the rural markets due to good monsoons. Total volumes reported a better-than-expected growth of 18.2% yoy (33.4% mom) to 625,420 units. Mahindra and Mahindra Mahindra & Mahindra (MM) registered slightly better-than-expected growth of 7% yoy (27% mom) to 88,821 units led by the robust growth in the tractor segment, even though the automotive segment continued to witness headwinds due to the slowdown and increasing competition in the utility ...