Metals, crude on recovery path

After a sharp correction across asset classes following a currency devaluation by China early this month, which has raised growth concerns, metals and crude oil prices have seen a sharp recovery in recent days.

Base metals have recovered by four to six per cent andBrent crude oil has jumped 18 per cent. There is an emerging view that metals might end higher this year, albeit with much volatility.

A hope is emerging that measures taken by Chinese authorities to spur demand, like a rate cut and reducing reserve requirements, will help prop demand for commodities, including base metals. Crude oil also went up due to reports of some members of the petroleum exporters' cartel, Opec, pushing for a supply cut Stock Market Trading Tips

Kunal Shah, head of research at Nirmal Bang Commodities, said: “Recent moves by PBOC (China's central bank) like infusion of liquidity, aggressive rate cuts and reserve ratio cuts' lag effect will be visible in the coming months. Generally, it takes two months to see the impact of such measures. Above this, the housing sector in China has bottomed out and sales are moving up, along with prices. Though China is slowing, it's growing at 6.4 per cent (yearly) and the economy’s size has expanded from $6 trillion to $10 trillion. There is no evidence of a hard landing. So, demand and ongoing production cuts will help (prices of) commodities to stabilise and gradually move up in the coming quarter. I think the worst is over for commodities.”

Andrew Cole, principal analyst at Metal Bulletin Research, feels base metals have overshot on the downside and will be at higher levels by the end of the year but there could well be some false starts before we get a more significant or sustainable recovery. He says it “might be too early to call the bottom just yet”. He will wait for some more days to see if these rebounds in the past two days are pounced on by the bears, which might welcome these as fresh selling or shorting opportunities Himanshu Tiwari Astrologer Blog

However, he lists several reasons for providing support, based on which metal prices could recover. According to him, “The fundamentals for each base metal are different and that will play a role in how they trade after this long rout down to multi-year lows. Take copper — there are enormous, unplanned supply disruptions this year, producers are consciously cutting back and lowering guidance (forecasts), too, treatment and refining charges are still under pressure, stocks are not particularly high, premiums are rising in China, we are yet to see the positive effect of many of Beijing's stimulus efforts on demand, dollar strength might be undermined if the US Fed delays a rate lift-off in September, the LME is backwardated, dominant holders have re-emerged, and extreme speculative short positions raises the risk of short covering, etc. That's a long list of potential upside risks to prices in the coming few months Indian stock market astrology prediction

Crude oil prices have seen a sharp recovery. However, says Abhishek Deshpande, lead oil analyst at Natixis, a London-based commodity research house, said: “Most of the support, we believe, is due to the short covering after the rapid selloff in oil earlier this week. Chinese equities were up sharply after the announcement of rate cuts by China. Oil fundamentals are still unchanged, so we continue to remain bearish on oil for now. Also strong numbers from the US and UK are all supportive of strong oil demand growth in general.”

Following a sharp recovery in metal prices, metal companies' share prices in the Indian market have shown a spurt. From Wednesday, the benchmark Sensex has recovered four per cent and the BSE Metal index has risen 10.2 per cent. Should you now buy metal stocks? Mahesh Nandurkar, the India strategist at CLSA, advises a watch for more data to understand the price and demand outlook. He said, “International commodity prices have come off due to the growth outlook worsening in China and its global impact. The key worry continues to be whether the yuan will get devalued further. If that happens, the rest of the emerging market currencies and commodity prices will see a further downside. It will be interesting to watch for the forex reserves' trend in China. If that stabilises, it will give comfort on the yuan outlook and, therefore, global demand outlook and commodity prices Share Market Astrology

Is growth accelerating or slowing?

This appears a legitimate question given the conflicting signals emanating from the GDP report and the residual methodological issues. If one took headline GDP growth at face value, one would have to conclude that April-June GDP growth was a disappointment. GDP growth (at market prices) slowed to seven per cent in April-June from 7.5 per cent the quarter below and was meaningfully below market expectations Stock Market Trading Tips

However, drawing too many conclusions from the headline print is dangerous, because the translation from gross value added on the supply side (GVA at basic prices) to GDP (at market prices) has been very puzzling the last two quarters. Last quarter, GVA growth slowed to 6.1 per cent but GDP growth surged to 7.5 per cent, buoyed by strong net indirect tax collections (indirect taxes less subsidies). In effect, therefore, net indirect taxes added 1.4 percentage points to GDP growth. The quantum was questionable even though the ordering of GDP and GVA was understandable given tax and subsidy dynamics.

This quarter exactly the opposite happened, with GDP printing below GVA! This is particularly mystifying because, by all accounts, indirect tax growth has been solid (even adjusting for the change in tax rates) and subsidies have collapsed on the back of lower oil prices in 1QFY16. Despite this, however, even as GVA growth accelerated from 6.1 per cent to 7.1 per cent, net indirect tax collections subtracted 0.1 percentage points from GVA, such that GDP slowed from 7.5 per cent to 7 per cent. The mystery deepens when you consider that the deflator for indirect tax collections was 2.6 per cent in the January-March quarter and 31.4 per cent in the April-June quarter! Himanshu Tiwari Astrologer Blog
 
Given these issues, we believe the dynamics of gross value added (GVA) are a better representation of economic activity on the ground. And GVA accelerated smartly from 6.1 per cent in 4Q15 to 7.1 per cent in 1Q16. To be sure, much of the acceleration was driven by stronger agriculture and public administration growth in April-June. Net of those sectors, "private industry and services" growth slowed a tad to 8.8 per cent from 9.1 per cent last quarter - but this is still much stronger than the 7.1 per cent growth from two quarters ago. In effect, if one smoothens the noise from quarterly data, private industry and services growth has been steadily rising over the last few quarters, which is consistent with the high frequency data available (auto sales, consumer durables, corporate profits).

But the question is can this growth sustain? In a world where China is slowing and there are downside risks to global growth, can Indian growth continue to accelerate? It is not inconceivable. Growth is bound to suffer from a big exports drag. But remember, India is benefiting from a huge terms of trade shock on the back of oil and commodity prices that are the lowest in five years. This is pushing down inflation, boosting purchasing power and bolstering firm margins. So think of current global dynamics as inducing a rebalancing of India's growth: exports will be under pressure but domestic demand is likely to benefit from a huge terms of trade shock. That said, this is growth that is being helped substantially by global benevolence. Policy makers have to keep chipping away at structural reform so that when the commodity cycle turns, our growth and inflation gains don't suddenly evaporate Indian stock market astrology prediction

Capex boost behind higher April-July fiscal deficit

India's fiscal deficit for the first four months of 2015-16 stood at Rs 3.85 lakh crore, 69.3 per cent of the full-year target, compared with 61.2 per cent for the same period last year, on the back of a boost in capital expenditure (capex) by the government, official data showed on Monday Stock Market Trading Tips

Additionally, with the gross domestic product (GDP) numbers for the April-June quarter also being released, the fiscal deficit for the first three months of the year stood at a staggering 8.84 per cent of GDP (Rs 32.43 lakh crore at current prices.) Finance Minister Arun Jaitley has budgeted a fiscal deficit target of 3.9 per cent of GDP for the financial year.

Total spending for April-July this year was Rs 6.09 lakh crore, nearly 39 per cent of the full year target of Rs 17.77 lakh crore, compared with 28.1 per cent for April-July last year. Non-plan expenditure was Rs 4.43 lakh crore, around 34 per cent of the full year target, compared with 30.5 per cent in last year's comparable period. Non-plan capital spending was 32.4 per cent of the full year target, compared with 32.1 per cent in April-July 2014 Himanshu Tiwari Astrologer Blog

India Inc borrows less via ECBs due to volatile rupee

India Inc’s borrowing by way of External Commercial Borrowings (ECBs) has taken a hit in recent times due to volatility in the rupee on account of global factors. Experts believe these loans may not see pickup even in the next few months due to looming concerns of US Fed’s rate hike.

Data from the Reserve bank of India (RBI) shows that ECBs recorded a drop of 32.48 per cent year-on-year (y-o-y) in July 2015 to $2,143 million. On a month-on-month basis too ECBs recorded a fall of 32.16 per cent Stock Market Trading Tips

“ECBs had slowed down due to global volatility as a result of which spreads (the difference between the rate at which the ECB loans are given and US treasury yields of similar maturity) had widened. Even in August, ECBs were slow,” said N S Venkatesh, executive director and head of treasury at IDBI Bank.

The volatility in the global market was due to factors like the Greek debt crisis, fears of US Fed’s rate hike and the recent decision of China to devalue the yuan. All these factors had an impact on the rupee against the dollar in the past and even going forward the movement of the rupee will depend on global events that will pan out Himanshu Tiwari Astrologer Blog

“ECB borrowings were down probably because the arbitrage between rupee borrowing and dollar borrowing is disappearing. The hedging costs are higher and in this arbitrage calculation, the hedging cost is taken into account. There was a lot of volatility in the rupee in July due to global factors,” said R Shankar Raman, chief financial officer and member of the board at Larsen & Toubro.

Earlier even those corporates who did not have a natural hedge used to go out and borrow through ECBs. But when the cost of ECBs became expensive due to rupee depreciation, they did not know how to repay the loan Financial Astrology Tips

“Today particularly, those companies that do not have a natural hedge have become skeptical to borrow through ECB. Besides that there has also been a drop in the credit quality of Indian companies across the spectrum as a result of which overseas lenders are also skeptical to lend. This is the case with even other emerging market countries and not just India. The dollar liquidity has become very limited to emerging market economies, including India. ECB loans may go down further in the next few months,” said Prabal Banerjee, president (finance & strategy), Bajaj Group.

On Monday, the rupee ended weak at 66.48 compared with previous close of 66.16 per dollar. In August, the rupee weakened by 3.6 per cent and since the start of 2015, the rupee depreciated by 5.5 per cent.

RIDING OUT THE VOLATILITY

• Data from the Reserve bank of India (RBI) shows that ECBs recorded a drop of 32.48 per cent year-on-year (y-o-y) in July 2015 to $2,143 million. On a month-on-month basis too ECBs recorded a fall of 32.16 per cent
   
• The volatility in the global market was due to factors like the Greek debt crisis, fears of US Fed’s rate hike and the recent decision of China to devalue the yuan Indian Stock Market Astrology Prediction

July core sector growth slows to 1.1%

Growth in the eight core sectors — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity — slowed to 1.1 per cent in July after a growth of three per cent in June, mainly on account of low expansion in coal output and contraction in steel, crude oil and natural gas production  that hinted at a weak industrial recovery Stock Market Trading Tips

Total growth in the core sectors, which has a weightage of nearly 38 per cent in the Index of Industrial Production (IIP), during the April-July period stood at 2.1 per cent from 5.5. per cent in the corresponding period of 2014-15, according to data issued by the ministry of commerce and industry on Monday.

Growth in coal production slowed drastically to a depressing 0.3 per cent compared to a robust growth rate of 6.3 per cent in the previous month of June. A year ago coal production in July stood at 5.7 per cent. During April-July period, growth in coal production increased 5.7 per cent compared to 6.4 per cent in the same period last financial year.

In June, steel production also shrank 2.6 per cent from a growth of 4.9 per cent in the previous month. Its cumulative index during April-July 2015-16 increased by 1.4 per cent over the corresponding period of previous year. According to economists, the July core sector data pointed towards sluggish recovery of the industrial sector. “July core sector growth at 1.1 per cent highlights weak industrial recovery. Coal output growth is affected by base effect,” said Devendra Kumar Pant, chief economist, India Ratings (Ind-Ra). Pant added that the core sector output in July point towards a weak IIP growth in July 2015 Himanshu Tiwari Astrologer Blog

Electricity generation increased by 3.5 per cent in July. Its cumulative index during April-July 2015-16 increased by two per cent over the corresponding period of previous year. Crude oil production declined 0.4 per cent in July. During April-July it declined by 0.7 per cent from a fall of 0.4 per cent in the same period last financial year. Natural gas output was down 4.4 per cent in July against 5.9 per cent fall in June and 8.9 per cent contraction in July, 2014. In none of the months in the year, natural gas production showed an increase, reflecting the woes of the industry.

“While the performance of the individual sectors was mixed in July 2015, the overall slowdown in core sector growth relative to the previous month is disappointing and does not augur well for overall industrial growth in that month. In particular, the stagnant performance of the coal sector is in contrast to the healthy six-eight per cent growth sustained over the previous four months,” said Aditi Nayar, senior economist, ICRA Indian stock market astrology prediction

The mild uptick in electricity growth in July following the negligible rise in June 2015 is partly on account of an easing of the adverse base effect, she said.

Production of cement increased 1.3 per cent in July. Cumulatively, it increased one per cent over the corresponding period last year
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Star Sports Pro Kabaddi League nets 26 mn online viewers in season 2

The Star sports Pro Kabaddi League (PKL), which had a dream launch in 2014, has clocked 26 million online viewers (unique visitors), in the second season that concluded last week.

This is a huge rise from the inaugural season, which saw 700,000 unique visitors on the property. The main driver of the growth is hotstar - the network’s mobile video streaming platform Stock Market Trading Tips

This puts it just behind the first season of the Hero Indian Super League, which had 32 million viewers, to become the second most viewed non-cricket sports league online.

Cricket continues to rule online viewership as hotstar had 200 million viewers for the Pepsi Indian Premier League and around 340 million viewers for the ICC Cricket World Cup 2015.

According to data provided by the broadcaster, Star’s online platforms witnessed strong interest from metros and the large cities with 90 per cent of consumption coming from the top six metros - Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Pune, and Kolkata.

This year, the tournament was streamed live on hotstar while last year, it was available on starsports.com Himanshu Tiwari Astrologer Blog

Considering this was the first time Star India was monetising the property (last year it did not go to market with ad-sales on the tournament), this popularity online helps enforce advertiser confidence in PKL.

“Season 2 of Star Sports Pro Kabaddi League set new benchmarks in monetisation for the sport of Kabaddi. On digital, we had 15 advertisers, including eight associate sponsors of the league, across categories such as durables, FMCG (fast-moving consumer goods), e-commerce, infrastructure, auto, BFSI (banking, financial services and insurance), among others. SBI (State Bank of India), Flipkart, Mahindra 4W, Coca-Cola, Britannia, Himalaya Face Wash, Skore Condoms, to name a few,” says a Star India spokesperson. hotstar launched a series of unique on air content with shows such as Jabaddi showing Bollywood veteran Jaaved Jaaferi narrating and reacting to the most entertaining moments of the game on a weekly basis.

Ultimate Panga hosted by youth icon Rannvijay Singha, put Kabaddi's super heroes through a series of tasks to test their skill and strength. hotstar also associated with V J Jose to create Tickle Bomb, which were short and funny clips that build the 'Kabaddi is fun’ quotient.  While Star India refused to divulge advertising revenue generated from these associations, sources reveal the network could be looking at Rs 50-55 crore in revenues. The network’s estimated spends on the tournament this year are around Rs 70 crore. Industry experts believe what has set the tournament apart has been good quality games, apart from the marketing and production finesse provided by Star India Indian stock market astrology prediction

Vinit Karnik, national director, ESP Properties, says, “Pro-Kabaddi League 2015 is a fine example of how a nation that is largely cricket-hungry can have its fair share of adulation, growth and success in a short span of time. The top-notch game quality, 'best-in-the-world' talent pool and crisp programme packaging made the Pro Kabaddi League ‘likable’ amongst the audience. As per our ESP Properties and IIM (Indian Institute of Management) Ahmedabad report, scheduling of a league and fan experience are the most critical factors of any successful sporting league and this was capitalised well with the Kabaddi League. Star has also done a great job in packaging the League well, and with the right amount of noise and sponsors coming in, we will look forward to seeing what the third season has in store.”

Star Sports Pro Kabaddi was among the most talked about events on online and social media with a 3x increase in search queries and social conversation compared to the last season. The league has seen 550,000 conversations so far, generating 7.5 billion potential impressions globally Share Market Astrology

The second season of the tournament has done well on television as well, recording 53 per cent growth in viewership over the first season (this is data for the first 49 matches released by TAM). This performance, coupled with the online performance has ensured that sponsors take note of the property as an advertising platform. Vipin Nair, joint managing director and co-founder of Baseline, a sports marketing company, says, “From next year, PKL will have two seasons a year, slotted in January–Februay 2016 (before T20 World Cup and IPL) and in July-August 2016 banking on facts such as more viewership (a lot of young viewers watching on digital platform) and more sponsors this season (eight associate sponsors).”

He adds, “Two seasons will allow sponsors / brands to have a greater continuity and deeper associations with the sport. Keeping in mind the growing interest among sponsors the plan is also to extend each season to 10 weeks from a five-week activity now. So all put together, 100-120 days like any other professional league globally will help more recall for the game and a sustained viewership that will help sponsors.

Besides the rising online viewership, the sponsors are excited about the fact that 50 per cent of the viewers have been women and children. “Some of the teams like U Mumba are planning youth programmes off season for 2016 so that it becomes an all-year-round activity to help sponsors / brands build their campaigns around PKL and improve active engagement with fans Commodity Market Astrology Tips

IT majors to raise entry pay by 5-10%

After almost seven years, information technology (IT) sector bellwethers such as Tata Consultancy Services (TCS) and Cognizant have decided to increase entry-level pay.

According to several engineering institutes from Tamil Nadu, the annual salaries for engineering students during the coming placement season will see a rise of at least five to 10 per cent, from Rs 3–3.33 lakh to Rs 3.33-3.5 lakh. IT product companies have increased salaries by 20-25 per cent, taking the annual package to Rs 5 lakh against Rs 4 lakh last year. And, start-ups are paying a yearly starting salary of Rs 4.5 lakh Stock Market Trading Tips

“IT product companies and start-ups have surpassed IT companies in annual salaries. So far, TCS and Cognizant have increased salaries and other IT companies are expected to follow,” said S Ganapathy, dean, placements, SRM University.

SRM will place 4,500 students this year into jobs, the same as last year.

Institutes said Infosys and Accenture were expected to follow TCS and Cognizant. According to sources at TCS, the salary rise will be 10-12 per cent. Cognizant has confirmed that entry-level compensation has gone up to Rs 335,005 annually from Rs 301,500, a rise of 11 per cent Himanshu Tiwari Astrologer Blog

Without divulging details, TCS said, “We constantly review the market and based on feedback received, we revise our compensation to align with the market demand.”

The factors given for the rise, after close to seven years, include the increase in cost of living, peer pressure in the IT sevtor, new-age companies offering better packages and that recruitment from other core sectors is expected to be better this year.

Sekar Viswanathan, vice-president, Vellore Institute of Technology (VIT), one of the largest in the country, confirmed that IT majors had raised entry pay Indian stock market astrology prediction

He said peer pressure was at work, with start-ups offering a better package at Rs 5-6 lakh a year and other core sectors raising their hiring numbers. “They (IT companies) don’t want salary to be a factor for students to reject them.”

This year, says Viswanathan, more companies are visiting the campus and hiring more. Companies have already blocked dates at VIT. Last year, 325 companies visited and 3,619 students were placed. This year, they expect 400 companies to visit for 4,300 students.

A placement officer from one of the top five institutes said the rise has been long-pending. “The last hike in the salary levels for campus recruitment by the IT majors was in 2007 or 2008, when it was raised from Rs 2.5-2.7 lakh per annum to around Rs 3 lakh,” he added Share Market Astrology

Start-ups, he said, might not be a major threat for the IT majors, as they might not be able to hire in large numbers. However, the latter might lose some of the good candidates, as entry pay at start-ups are Rs 5 lakh or even Rs 10 lakh annually and a meagre 10-11 per cent increase from Rs 3 lakh yearly would not be sufficient. For instance, new-age company PayPal had offered Rs 16 lakh, now revised to Rs 20 lakh.

Madhu Murthy, president, Talentsprint, a skill development and training company based in Hyderabad, said the wage rise in campus recruitment could be mainly to adjust the increase in cost of living. “It is a meagre adjustment and is not going to make much of a change,” he said.

Wipro has been offering around Rs 3 lakh a year for a graduate and is expected to raise this to Rs 3.33 lakh; for a postgraduate, it has been offering Rs 3-3.25 lakh and this is expected to go up to Rs 3.33-3.5 lakh. Infosys’ offer has been around Rs 3.3 lakh for a graduate and Rs 3.5 lakh for a postgraduate; Accenture’s is around Rs 3.15 lakh Jackpot Stocks Trading Tips

Honda to raise car prices this week

Honda Cars, the country’s fourth largest passenger vehicle maker, will announce a price increase this week for most of its products. It will follow the top two in the segment, Maruti Suzuki and Hyundai, which announced a price rise earlier this month.

It is likely to be a rise of one to two per cent. “The main driver is an increase in costs. The weakening rupee is also a factor. We are evaluating the increase that is required”, said Jnaneswar Sen, senior vice-president (marketing & sales) at Honda Cars India Stock Market Trading Tips

Indian subsidiary of the Japanese car maker, it sells six products here — the City, Jazz, Amaze, Brio, Mobilio and CR-V.

Asked if the increase would also apply to the Jazz, relaunched only last month, Sen said the company was still to decide. Maruti and Hyundai did not increase the price for their new products, the S-Cross and Creta, in the recent rise.

Honda sold 189,062 vehicles over 2014-15 in the Indian market. In the April-July period this year, it sold a little over 63,000 cars, about 12 per cent more than in the same period a year before Himanshu Tiwari Astrologer Blog

The largest in the segment, Maruti Suzuki, raised prices by Rs 3,000 to Rs 9,000 across products, barring the S-Cross, with effect from August 11. The reason was a combination of increase in dealer margins and costs. The increase came after nearly two years. Hyundai, the second largest, had raised prices by up to Rs 30,000 on all products except the new sports utility vehicle, Creta, from August 1, citing an increase in pressure from rising input costs.

Interestingly, the sales volumes of these three have been growing at double-digit rates this year, higher than the industry average. This and the coming high-demand festive season is giving the companies enough confidence that the market will absorb higher prices Commodity Market Astrology Tips

Auto majors rev up advertising expenditure

Automobile companies are spending record amounts onadvertising and promotional activities, to boost sales.

In the year ended March 2015, the top five companies by revenue — including Maruti Suzuki, Mahindra & Mahindra (M&M) and Hero MotoCorp — spent a combined Rs 2,637 crore to push sales, up 19 per cent from a year before.

All the top five companies spent more on advertising compared to FY14. The bulk of the rise came from the largest respective entities in passenger vehicles and two-wheelers, Maruti Suzuki and Hero MotoCorp Stock Market Trading Tips

Ad expenditure as a percentage of revenue went up in FY15 for all the top companies, except Tata Motors. Maruti and M&M spent less than one per cent of their revenue on advertising. M&M’s 0.85 per cent is the lowest among the top five and lower than Maruti’s 0.93 per cent.

Hero MotoCorp and Tata Motors spent more than two per cent of their revenue on ad and promotion activities. BajajAuto spent 1.48 per cent of revenue on advertising against Hero MotoCorp’s 2.42 per cent. Hero’s ad spending as a percentage of revenue is the highest among these top five companies.

Passenger vehicle makers had a decline in sales volume in FY14, after several years of growth. This prompted them to spend aggressively on advertising and promotions in FY15. The country’s largest passenger vehicle maker, Maruti Suzuki, spent Rs 464 crore, about a third more than in FY14. The ad spends and an excise cut boost offered by the government helped the company grow domestic volumes by 11 per cent Himanshu Tiwari Astrologer Blog

A Maruti executive said the ad spending in a particular year depends on launch of new models and refreshed versions, as well as regular brand campaigns. “Companies are adding more models every year and, therefore, more money is being spent on the publicity for new products,” he said.

Going by the launches done this year so far and what companies plan for the rest of the year, the ad spending is certain to rise further. Maruti launched a diesel Celerio, the S-Cross, and will be launching a hybrid Ciaz on Tuesday. It has also earmarked spending for Nexa, the new premium retail dealerships. Companies will also spend money on the Auto Expo in February 2016.

K V Sridhar, chief creative officer of ad agency Sapient Nitro, said clutter was added to the ad space, especially last year, with the result that companies had to spend in newer digital platforms to reach the target audience. “Gone are the days when TV advertisement used to yield the desired result. The efficiency of delivery from traditional media has come down and so, companies need to spend more,” he said Commodity Market Astrology Tips

Apollo Hospitals: Expanding scale, improving profits

Apollo Healthcare scrip gained a further 2%, adding to its 7% gains in the last four trading sessions after the company said it will expand its footprint in Bangladesh. The company will be setting up a second hospital in Chittagong Stock Market Trading Tips

The stock has been on the investors' radar recently after CLSA put out a buy call early last week.

Investor interest in the hospitals space has also gone up after Malaysia-based healthcare services provider IHH Healthcare Berhad purchased 74% stake in Global Hospitals, which runs a chain of five hospitals in the country (1,100 beds) for Rs 1,284 crore.

The Malaysian healthcare major has a 10.85% stake in Apollo Hospitals. 

A key growth trigger for the company is capacity expansion over the next three years as well as the proportion of matured beds from the capacity additions between FY12-15. Of its own hospitals and beds of 7,217 at the end of FY15, only 10% is below one year and about 61% is five years or older. Including managed hospitals, the total bed capacity of the company is 9,215. The company intends to add about 1,600 beds over the next three years (till FY18) Himanshu Tiwari Astrologer Blog

Despite the expansion, Crisil Ratings says that the company will sustain its operating margins of 13-14%, aided by strong operating profitability of its matured hospitals along with improving operating performance of its joint ventures and subsidiaries as well as retail pharmacy business. 

While the retail pharmacy division has been a drag on the company’s overall profitability, the company’s focus on improving in-store profitability has helped it to improve its operating margins from 2.7% in FY12 to 3.3 in FY15. 

CLSA expects FY17 to be the inflexion point for an accelarated earnings per share growth. The research firm believes that the company will see a strong 36-45% EPS growth in FY17 and FY18 as new hospitals scale up and capex is completed. Earnings growth between FY14-FY16 (estimates for this fiscal) is in the range of 4.1% to 7.8%. 

About half the analysts who track the stock have a 'buy' on the scrip with the consensus target price of Rs 1,439, which translates into a marginal 5% gain from the current levels. Given the recent run up and valuations at 38 times its FY17 earnings, investors with a horizon of at least two years should await further correction before adding it to their portfolio Commodity Market Astrology Tips

Three brokerages reduce indices' targets, two bullish

Three brokerages have cut targets for domestic benchmark indices, citing earnings weakness and the turmoil in global equities.

But foreign brokerage Goldman Sachs retained its overweight call on India, with a 12-month Nifty target of 9,300. Citi remains bullish and expects the Sensex to touch 32,200 by end-December Stock Market Trading Tips

Barclays reduced its 12-month forward Nifty target to 9,642 from 10,219, citing postponement in earnings recovery. "Indian earnings have now remained stuck in single-digit growth territory for the past three years. This year is following a similar pattern, with downgrades toFY16 estimates persisting," it said on Monday. The brokerage expects growth to rebound in the second half of this year, helped by consumer goods (staples and discretionary), financials, health care, and capital goods.

"On a top-to-down basis, our forecasts are underpinned by an expectation of better fiscal policy in terms of higher capital expenditure by the government and an improvement in consumption as lower oil prices trickle to consumers. Our expectations from the monetary policy are more muted: Our economists look for a 25-basis-point rate cut before March 2016 and FY16 average CPI (consumer price index) of five per cent," the report said.

Macquarie has trimmed its Nifty target for December to 8,700 from 9,600. The brokerage expects earnings' weakness to continue in the quarter ended September Himanshu Tiwari Astrologer Blog

Domestic brokerage Ambit Capital cut its end-FY16 Sensex target to 28,000 last week. The brokerage sees risks of a delayed economic recovery from headwinds such as a major real estate price correction, a banking system blow-up, and the government's inability to speed up economic reforms.

"We are forced to revisit and revise our trailing Sensex price-to-earnings multiple from 20 to 18. This, combined with our bottom-up FY16 EPS (earnings per share) estimate of Rs 1,550 (nine per cent year-on-year growth on the actual FY15 EPS of Rs 1,430), leads us to our new end-FY16 Sensex target, implying a seven per cent upside," said the brokerage.

However, the good news is that foreign brokerage Goldman Sachs has retained its 'overweight' call on India, with a 12-month Nifty target of 9,300. Citi is bullish as well and expects the Sensex to touch 32,200 by December end Indian stock market astrology prediction

Weak markets an opportunity

After last Monday's massive fall in the Indian markets, a lot of quality stocks have fallen significantly. These have healthy growth prospects and many are also a play on an improving macro economy. Not surprisingly, many research houses are recommending that investorsselectively pick up good names among these. Here’s a shortlist of the top five stocks, among the most preferred picks of well-known brokerages. Additionally, these are trading in close proximity (six to 15 per cent higher) to their respective 52-week lows. State Bank of India (SBI), ICICI Bank, Larsen and Toubro (L&T), Coal India and Oil and Natural Gas Corporation (ONGC) are the stocks investors can consider at current levels Stock Market Trading Tips

COAL INDIA

• The government’s impetus on raising coal production will benefit Coal India, boosting its output in the coming days. Already production is up 10.5 per cent year-on-year at 156.15 million tonnes in April-July, 98 per cent of the target set for the company
• The more profitable e-auction volumes are also increasing regularly
• Though realisations are under some pressure, increasing volumes should offset these
• Analysts at Nomura have tweaked realisation estimates but raised output estimates, arriving at a target price over Rs 400

ICICI BANK

• Inexpensive valuations, coupled with the improving prospects of power and infrastructure sectors, are key positives Himanshu Tiwari Astrologer Blog
• Value unlocking in subsidiaries like life insurance, as well as their healthy prospects, should aid consolidated performance
• Bottoming out of asset quality pressures, healthy earnings growth and returns ratios should reduce the valuation gap with peers
• The bank's earnings are likely to grow 18 per cent annually over FY15-17, with 200-250 basis points expansion in return on equity likely

L&T remains the best play as the Indian infrastructure segment recovers, while exposure to markets abroad helps diversify revenue streamsLARSEN & TOUBRO

• The company is likely to benefit from order flow in verticals such as defence, shipbuilding, nuclear power, etc, though some of these will accrue only in the longer run
• Order flow and execution is likely to grow in all verticals in the country and operations abroad
• Analysts at IDFC see earnings growing at a compounded annual rate (CAGR) of 25 per cent over FY15-17 as business prospects improve Indian stock market astrology prediction

OIL & NATURAL GAS CORPORATION

• Lower crude oil prices have pulled down the stock, as it directly impacts the prospects of subsidiary ONGC Videsh
• Clarity on subsidy sharing in advance will help clear the uncertainties and, hence, prop investor sentiment
• Lower subsidies are already rubbing off well on net realisations, which, along with increasing production, will drive earnings. Analysts peg its earnings to grow at a little over 20 per cent CAGR over FY15-17 assuming crude oil at $55 a barrel
• Further falls in natural gas and crude oil prices to unattractive levels for a prolonged period are key downside risks Share Market Astrology

STATE BANK OF INDIA

• SBI is a direct play on domestic economic recovery, given its strong presence across the country and in business segments
• Healthy capital ratios, stabilising asset quality and competitive lending rates are key positives
• It is among the few public sector banks that have protected its market share even with intensifying competition
• Analysts expect earnings to grow at a CAGR of 22-25 per cent over FY15-17 Commodity Market Astrology Tips

Torrent Pharma hits lifetime high

Torrent Pharmaceuticals has rallied 5% to Rs 1,680, extending its month long rally on the bourses in otherwise weak market, after the company reported a strong set of numbers for the first quarter ended June 2015 (Q1FY16), on account of a new product launch in the US.

The stock hit a lifetime high of Rs 1,720 on the BSE in intra-day trade. Post Q1 results, it rallied 30% from Rs 1,327 on July 23, compared to 8% decline in the S&P BSE Sensex Stock Market Trading Tips

The drug maker had reported 75% year-on-year (YoY) rise in consolidated net profit at Rs 449 crore for Q1FY16 against Rs 256 crore in the corresponding period of previous fiscal.

The financial performance for the quarter was driven by niche opportunity (g?Abilify) and low base of past year in Domestic formulation (DF) segment Himanshu Tiwari Astrologer Blog

Analyst at IndiaNivesh Securities expects business opportunity from g?Abilify to continue in near term as approval for other companies is yet to kick in. Torrent Pharma is in process of ramping its ANDA pipeline for US market through in?house R&D as well as through M&A route.

“We remain positive on the stock on the back of increased R&D effort towards building robust ANDA pipeline for US market and sustained outperformance in domestic formulation market,” analysts said in a report dated July 29, 2015 Indian stock market astrology prediction

SEBI Chief appointment: Yes, do employ her for a better future

The much-awaited notification has come. The Union finance ministry has called for applications to the coveted post of chairman of the Securities and Exchange Board of India (Sebi). The change of guard at the market regulator, after five years, will be one of the most followed and speculated-on processes this year.

Let us start it right here, on Street Food. A just-retired officer based in the capital is likely to throw his hat in the ring, say some. A Mumbai official who shares his first name with the first officer is another strong candidate. Then, there are people who've had earlier stints at the regulator, beside bright bureaucrats Stock Market Trading Tips

We will read about all these and more as the race heats up in the coming weeks. The notification has some interesting terms. The new chairman will get a consolidated monthly salary of Rs 4.5 lakh, a 50 per cent rise from the Rs 3 lakh a month that incumbent U K Sinha got when he began his innings five years earlier.

Despite this ‘handsome’ hike, the emoluments would considerably fall short of what a lower to mid-level corporate executive takes home. Top lawyers would demand this sum for a couple of court appearances. Top-class market talent in the private sector might not find sufficient motivation to take part in the process, even if the government wants it to. The package is perfect, though, for a retired or ‘about to retire’ bureaucrat.

Two phrases in the application leave room for a hope that the next chairman could be a ‘young’ person, going by local standards for regulators. Applicants can be in the age group of 50-60 years. Second, the chairman “shall hold office for a period of five years and shall not hold office beyond 65 years, whichever is earlier. He is eligible for reappointment” Himanshu Tiwari Astrologer Blog

Read together, this raises the possibility of a person in the early 50s or around 55 taking charge and having a reasonably long term. If the reappointment is for an equal period, this person can have an unprecedented 10-year term. A double–edged sword, for if the government’s choice goes bad, the Street is stuck for the next decade.

However, let us be optimistic and hope the prime minister gives his nod to a bright, ‘young’ candidate, with integrity, adequate knowledge and a willingness to learn. Let us also hope that this choice is made with enough conviction that an extension is a formality Indian stock market astrology prediction

Frequent changes, having three chairmen in the past 10 years, have certainly not worked for investors. There have been policy U-turns each time a new person has checked in. Some insiders even joke that there have even been “W-turns” and “Y-turns”.

Worse, some changes even resulted in public squabbling and name calling that soiled the reputation of the institution, even more than these damaged that of the individuals concerned. A person blessed with a long tenure would be in a better position to take the securities market in the path of progress. Such stability and certainty in policy direction is what global investors look for in mature markets.

But, a typo at the end of the notification, which can be seen as prophetic, suggests a little twist in the tale. “TO BE FILLED BY EMPLOYHER”, it says. Perhaps, in a first, they will indeed Employ a Her. It is high time Commodity Market Astrology Tips

Real estate barons lost 90% of wealth in a decade

Some of the country's top real estate barons have lost the bulk of their fortunes in the past decade. The combined net worth of the country's 12 biggest real estate barons is down 90 per cent in rupee terms since the high of December 2007.

In dollar terms their wealth as measured by the market value of promoter stakes in listed realty companies - is down 95 per from the peak. With real estate prices expected to fall further, builders are likely to remain under pressure, says analysts Stock Market Trading Tips

Top builders are now worth Rs 24,000 crore ($3.8 billion), down from their combined net worth of Rs 2.79 lakh crore ($70 billion) at the end of December 2007. The list includes DLF's KP Singh, Unitech's Chandra family and the Wadhawans of HDIL.

The analysis is based on the market capitalisation and promoter stakes of real estate companies beginning December 2007, when the BSE Realty Index and the broader market were at their peaks.

Since then, the BSE Realty Index is on a downhill journey defying two intervening bull-runs in March 2009-November 2010 and September 2013-August 2015.

The biggest loser among individual promoters is K P Singh, promoter and chairman of DLF Ltd. The value of his stake in the company is down from a high of Rs 1.61 lakh crore ($40.8 billion) in December 2007 to Rs 15,300 crore ($2.4 billion) Himanshu Tiwari Astrologer Blog

The Chandras of Unitech lost 99 per cent of their wealth with a meltdown in the stock price of their company. The Chandras are now worth Rs 530 crore ($81 million) from Rs 59,098 crore ($15 billion) in December 2007. The telecom spectrum scam and the arrest of the company's managing director, Sanjay Chandra, made investors nervous.

The other big losers include Rakesh Kumar Wadhawan of HDIL, whose net worth is now down to Rs 956 crore ($147 million) from Rs 14,152 crore (Rs $3.5 billion) in December 2007.

Others who have lost a billion dollars (or Rs 6,000 crore) or more include the Jain brothers of Parsvnath Developers , Rohtas Goel of Omaxe, Ravi Purvankara of Purvankara Projects and Hemant Shah of Hubtow Indian stock market astrology prediction

Big losers outside this list are Vinod Goenka and Sahid Balwa of DB Realty. Their net worth is down from a high of Rs 7,142 crore in March 2010 to Rs 850 crore now.

"The blame goes to analysts who provided unimaginable valuations to developers during the boom on projected earnings that never materialised as companies began to maximise property prices rather than revenue and profitability," says Pankaj Kapoor, managing director of Liases Foras.

As prices rose, home sales declined and builders began to pile up inventory, leading to cash flow problems. Higher costs followed as landowners raised prices and authorities increased ready reckoner rates. "The industry landed itself in a downward spiral of higher prices, lower sales and higher costs," adds Kapoor Share Market Astrology

As investors burned their fingers in realty stocks, promoters have taken out a large chunk of their money. A back-of-the-envelope calculation shows that nine out of 12 promoters have cumulatively sold shares worth Rs 13,760 crore in their companies over the years.

In addition, most promoters have pledged their remaining shares to lenders. So it is mutual funds, financial institutions and retail shareholders who are left holding the can. DLF is an exception as its promoters have not pledged any part of their holding.

The future of the real estate sector remains grim. Analysts say prices and demand will continue to remain under pressure due to oversupply and affordability.

The valuations of real estate companies have been affected by delays in cash flow break-even at project levels. Liquidity tightening by the Reserve Bank of India and a volatile rupee are daunting investors.

"In the last two years, factors such as low income growth, rising debt, subdued industrial activity and an unrealistic increase in property prices have dented demand for property," say Emkay analysts Dhananjay Sinha and Kruti Shah Commodity Market Astrology Tips