Tuesday, September 3, 2013
Monday, December 28, 2009
Market 2009
2009 will go down in history as one of the best for Indian equity markets, after 1993 and 1999—this year, they have emerged among the top-four performing markets in the world. CNBC-TV18’s Varinder Bansal and Vidhi Godiawala report.
It was the calm after the storm, and a much-needed one at that. After the carnage witnessed in 2008, 2009 saw the global equity markets calming down and the Indian markets made the most of this, becoming one of the top four performers in the world.
Foreign institutional investors played their part. They pumped in nearly USD 17 billion over the year. Of this, nearly USD 7 billion came from QIPs, USD 3.3 billion came from IPOs, and over USD 3 billion came from ADRs and GDRs.
Helping the India markets along were sectors like metals, automobiles, and technology.
Girish Paranjpe, ED and Joint CEO, Wipro, said, “We have demonstrated that we are a very resilient sector and we are able to manage demand fluctuations and manage margins very well. That should be a matter of great satisfaction for investors in this sector.”
The tech index rose 130%, and the auto index rose 200%, but both these performance were eclipsed by the metals index, which surged 230% over the year.
Jindal Steel & Power led the way, gaining nearly 380% followed by Sterlite, which rose 225%, SAIL which rose 205%, Hindalco, which rose 200%, and Tata Steel which gained 180%.
And 2010 should be a good year as well.
Naveen Jindal, Executive VC and MD, JSPL, said, “There is going to be huge demand for steel as per capita steel consumption is still quite low in India—its almost 14th of Chinese steel consumption. Steel prices are depressed as of now but I feel we are concentrating more on reducing our cost of production also but it is a temporary phase.”
The banking sector also bounced back smartly from 2008's drubbing. Most banking stocks gained around 100% each in 2009 but walking away with the honours are IndusInd Bank with a 270% rise, Central Bank, up 240%, and Yes Bank, with a 233% rise.
Yes Bank says this has been on the back of a strong business performance.
Rana Kapoor, Founder, MD and CEO, Yes Bank, said, “We have been deriving approximately 48-50% from non interest income sources which are fairly well diversified across treasury, across advisory, transactional banking and branch banking.”
However, not all sectors had a ball. Some heavyweights like HUL, Idea, and DLF posted just modest gains. The telecom sector took the worst beating, as tariff wars kept investors away.
Over the year, Reliance Communications fell 20%, and Bharti Airtel was down 10%.
Akhil Gupta, MD, Bharti Enterprises, said, “On telecom, surely the price wars have some pressure on the tariffs but what we mean is that they must be sustainable tariffs for everybody to grow in this business.”
CEOs are confident that 2010 will be a good year, after all, they have survived the upheavals in late-2008, and the uncertainty of 2009. But analysts are not so gung-ho. They say that while 2009 has given strong returns to the brave, 2010 may not see a sustained bull run, as markets consolidate
It was the calm after the storm, and a much-needed one at that. After the carnage witnessed in 2008, 2009 saw the global equity markets calming down and the Indian markets made the most of this, becoming one of the top four performers in the world.
Foreign institutional investors played their part. They pumped in nearly USD 17 billion over the year. Of this, nearly USD 7 billion came from QIPs, USD 3.3 billion came from IPOs, and over USD 3 billion came from ADRs and GDRs.
Helping the India markets along were sectors like metals, automobiles, and technology.
Girish Paranjpe, ED and Joint CEO, Wipro, said, “We have demonstrated that we are a very resilient sector and we are able to manage demand fluctuations and manage margins very well. That should be a matter of great satisfaction for investors in this sector.”
The tech index rose 130%, and the auto index rose 200%, but both these performance were eclipsed by the metals index, which surged 230% over the year.
Jindal Steel & Power led the way, gaining nearly 380% followed by Sterlite, which rose 225%, SAIL which rose 205%, Hindalco, which rose 200%, and Tata Steel which gained 180%.
And 2010 should be a good year as well.
Naveen Jindal, Executive VC and MD, JSPL, said, “There is going to be huge demand for steel as per capita steel consumption is still quite low in India—its almost 14th of Chinese steel consumption. Steel prices are depressed as of now but I feel we are concentrating more on reducing our cost of production also but it is a temporary phase.”
The banking sector also bounced back smartly from 2008's drubbing. Most banking stocks gained around 100% each in 2009 but walking away with the honours are IndusInd Bank with a 270% rise, Central Bank, up 240%, and Yes Bank, with a 233% rise.
Yes Bank says this has been on the back of a strong business performance.
Rana Kapoor, Founder, MD and CEO, Yes Bank, said, “We have been deriving approximately 48-50% from non interest income sources which are fairly well diversified across treasury, across advisory, transactional banking and branch banking.”
However, not all sectors had a ball. Some heavyweights like HUL, Idea, and DLF posted just modest gains. The telecom sector took the worst beating, as tariff wars kept investors away.
Over the year, Reliance Communications fell 20%, and Bharti Airtel was down 10%.
Akhil Gupta, MD, Bharti Enterprises, said, “On telecom, surely the price wars have some pressure on the tariffs but what we mean is that they must be sustainable tariffs for everybody to grow in this business.”
CEOs are confident that 2010 will be a good year, after all, they have survived the upheavals in late-2008, and the uncertainty of 2009. But analysts are not so gung-ho. They say that while 2009 has given strong returns to the brave, 2010 may not see a sustained bull run, as markets consolidate
Monday, September 14, 2009
Gold price may zoom to record Rs 18,000 in India
Gold is the most expensive buying proposition in India, if the price rise in the yellow metal is any indication. Gold price has been zooming in India to record levels in the past two weeks, and it is going to go up as festivals come in.
India's leading industry body Assocham said on Sunday that gold price is likely to touch Rs 18,000 per 10 gram during the forthcoming festival season as the demand for the yellow metal peaks around Diwali time.
Gold prices is expected to increase by Rs 2,000 per 10 gram by Diwali, which is followed by a marriage season in the country, it said. Currently gold prices are hovering around Rs 16,000 per 10 gram.
"The bullion is likely to gradually see spurt in it's prices and stay around Rs 18,000 per 10 gram by Diwali," Assocham President Sajjan Jindal said.
This is due to the fact that more and more investors are flocking to take refuge to gold as an asset class as it happens to be the best bet against rising inflation, Assocham said.
The high valuations of stocks and its attendant risk have by and large motivating investors to part shift to gold as an investment class, it said
The chamber has suggested that those who want to invest in gold, should not purchase jewellery but instead buy the metal from Singapore or Dubai in form of bars. It also said buying pure gold from banks is costly because one has to pay about 25 per cent more than the market price.
Tuesday, August 11, 2009
WGC to lure gold buyers with Great Indian Gold Rush
The World Gold Council is desperately trying to lure back gold customers to jewellery shops with a lot of schemes during this festivals season.
With several consumer goods companies and mobile phone firms vying to win over customers with lucrative offers this bonus season, gold jewellery shops are also giving a lot of schemes and prizes for customers now.
The WGC has planned shopping festivals that will dish out Rs 2.2 crore worth of prizes, while generating Rs 5,000 crore worth of business for the flagging industry.
In what is the first initiative of its kind, the WGC is holding the month-long festivals christened the ‘Great Indian Gold Rush’ simultaneously across 10 cities in the country in the bid to give a shot to the gold business.
It has tied up with local jewellery retailers, banks and branded jewellery makers to hold the festival, that begins with the onset Navratra (September 19) and ends with Diwali.
The festivals will be held in Mumbai, Delhi, Bangalore, Kolkata, Pune, Nagpur, Gujarat (considered a single market), Indore, Kanpur and Lucknow. The carrot for customers to steer away from lifestyle statement gizmos and come back to gold and silver is that prizes worth 1,500 gm of gold (Rs 22 lakh at today’s price) are up for grabs in every city.
Though India is the largest single buyer of gold in the world, consuming 22-25 per cent of total global production annually, the total demand during 2008 was 660 tonnes, a 15 per cent dip over the 776 tonnes in 2007, while the turnover on gold stood at Rs 112,000 crore, Mr Sodah reveals.
The first quarter of 2009 too has not been very encouraging, with sales at 135 tonnes, down by 51 per cent year on year. WGC expects to boost demand for gold jewellery, coins, chips and ETFs - by at least 20 per cent through the new measure
Thursday, July 30, 2009
Economy Update
Key rates unchanged at the same level since last
cut in Apr’09
M3 growth has remained above the target of
17% for FY10, prompting the RBI to revise the
growth target to 18.0%
WPI inflation projection for FY10 revised up to
5.0% from earlier projection of 4.0%, since WPI
Index has already increased by 3.5% in the FY10
GDP growth target for FY10 retained at 6% with
upward bias
Despite bottoming of rates, Net Repo volumes
are still heavily negative at Rs 1.2 tln
RBI seems to maintain its accommodating stance
of anchoring inflation expectation and
sustaining growth momentum
cut in Apr’09
M3 growth has remained above the target of
17% for FY10, prompting the RBI to revise the
growth target to 18.0%
WPI inflation projection for FY10 revised up to
5.0% from earlier projection of 4.0%, since WPI
Index has already increased by 3.5% in the FY10
GDP growth target for FY10 retained at 6% with
upward bias
Despite bottoming of rates, Net Repo volumes
are still heavily negative at Rs 1.2 tln
RBI seems to maintain its accommodating stance
of anchoring inflation expectation and
sustaining growth momentum
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