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Fundamentals May 29, 2013

Nik's Diary 
The Indian markets opened flat tracking marginally negative opening in most of the Asian markets and SGX Nifty. US markets pulled back off after moving sharply higher in early trading but managed to end the day in positive territory. The positive sentiment was led by release of the report from the Conference Board which reported surge in consumer confidence index to 76.2 in May (five-year high) from an upwardly revised 69.0 in April. The pullback off the highs may have reflected lingering concerns about the outlook for the Federal Reserve's asset purchase program, as Fed officials have indicated that upbeat data may lead the central bank to taper the program within the next few meetings. European markets ended the day in green reacting positively to the release of better than expected U.S. economic data. Meanwhile, Indian shares ended higher for a third consecutive session on Tuesday following the firm global cues. Adding to the positive sentiment, Prime Minister Manmohan Singh assured India would take more steps to attract foreign investments. Terming the 5% growth witnessed last year a temporary slowdown, Singh noted that India's fundamentals are still intact and the country will revert to 8% growth. 

Jet ties up with 6 brands for frequent flyer programme
Jet Airways   on Tuesday said it has tied up with six new partners in retail, travel and publishing segments for its frequent flyer programme JetPrivilege. "The partnership will help the private airline over high value propositions to customers," Jet Chief Commercial Officer Sudheer Raghavan said in a release. In the retail category, JetPrivilege has partnered with Purplle.com, an integrated beauty and grooming online store as well as with HighStreetLabels.in, an online shopping destination that offers customers a range of contemporary apparel, handbags, footwear, accessories, the release said. As part of the deal, JetPrivilege members can earn five JPMiles for every Rs 100 purchase from these two portals, it said. The company has joined hands another leading premium fashion retail brand, Chic Outlet Shopping, to enable JetPrivilege members shop luxury brands and earn JPMiles, the release said. In the retail category, Jet has forged a partnership with Gili, a jewellery brand. Jet has also joined hands with a car rental agency, Fortune India and Outlook Group for the programme. Source: Moneycontrol

Projects worth 4mn sqft in pipeline for 3-4 yrs: Peninsula
Peninsula Land  's Q4 revenue slipped 61 percent to Rs 106 crore against Rs 277.09 crore a year ago. The company's net profit was down 56 percent at Rs 35.8 crore against Rs 82.7 crore year-on-year. MD & VC Rajeev Piramal said, there may some pressure on the company's margins in the near-term, but with slew of launches scheduled ahead, he is confident of keeping margins strong and getting profitability back. The company is planning to launch three projects in Mumbai, two in South Mumbai and one in Central Mumbai soon. "We have about 4 million sq ft in the pipeline. Its overall value could be anywhere between Rs 6,000-8,000 crore depending on how the market goes. We will accrue all of this over the next three-four years," he added.Source: Moneycontrol

RBI rules out ban on sale of gold coins
The Reserve Bank today ruled out a ban on sale of gold coins but asked banks to refrain from aggressively selling the precious metal. RBI Governor D Subbarao told reporters here that the RBI did not intend to ban sale of gold coins by banks. "We do not want banks to aggressively market gold. We do not want that to become a business. Gold loans are a very small part of the banking business," he said on the sidelines of a financial inclusion conference here. In a bid to curb demand for gold, the RBI yesterday imposed restrictions on banks and NBFCs for providing loans against gold coins as well as units of gold ETFs and mutual funds.Saying the route of buying gold for the purpose of genuinely saving should be available to the people, Subbarao emphasised that investment in the financial sector is good for the economy. He also noted that the attractiveness of gold is a "consequence of high inflation". Talking about the need for financial inclusion, he said the RBI had a two-fold responsibility as a regulator and public policy institution and it was important to make people understand viable alternative avenues of investment as part of financial inclusion to wean them away from such schemes. Subbarao said there were many "unscrupulous schemes" which did not come under regulatory purview which lure people with exorbitant rates of interest. The conference was attended by some 90 delegates comprising rural customers, business correspondents and rural branch managers of commercial banks from Gujarat and Chhattisgarh.Source: Moneycontrol


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