Wednesday, June 29, 2011
Tuesday, June 21, 2011
The Financial Technologies group operates one of the world’s largest network of 10 exchanges connecting fast-growing economies of Africa, Middle East, India and South East Asia. The group also has five ecosystem ventures to address upstream and downstream opportunities around exchanges, including clearing, depository, information vending, and payment gateway among others.
Rating agency Crisil today said the proposed initial share sale of Multi Commodity Exchange of India (MCX) has strong fundamentals, especially reflecting its leadership position in the Indian commodity futures market.
MCX filed draft papers for the IPO with capital market regulator Sebi on March 31.
Crisil has given "five on five" IPO grade for MCX, which is promoted by Financial Technologies India.
"This grade indicates that the fundamentals of the IPO are strong relative to other listed equity securities in India," the rating agency said in a statement.
According to Crisil, the grade also reflects MCX's leadership position in the Indian commodity futures market over the past four years. The entity had an 82% share of the overall traded turnover in fiscal year 2010.
"It is a leader in the trading of bullion, crude oil, copper and natural gas," the statement noted.
"With a strong technology-backed trading platform and infrastructure, MCX is able to provide high liquidity and low impact cost of transactions – key criteria for the success of any exchange," it added.
Crisil pointed out that the rating also considered the benefits that MCX would derive from amendments to the Forward Contracts (Regulation) Act -- that would allow trading of options and indices as well as participation by institutional investors. This would in turn increase the traded turnover on commodity exchanges.
"While new commodity exchanges have been set up over the past couple of years, they have not been able to nudge MCX from the top. However, we expect competition could intensify in the future," it said.
MCX's operating income has increased at a CAGR (Compound Annual Growth Rate) of 18.3% over FY08-10.
So consider financial technology as a trading idea and i think it can be bought around 800 levels and can sell at around 860-890 levels...Please note down that this is a momentum call and dont wait for exact target in volatile market conditions.Act wisely........................................
Friday, June 17, 2011
Thursday, June 9, 2011
The department of industrial policy and promotion (DIPP), which falls under the commerce & industry ministry has now mooted a proposal to throw open India's Rs 79,000-crore retail market to transnational retailers, such as WalMart , Carrefour and Tesco, among others.
The plan now is to open FDI in multi-brand retail trading (MBRT) to the extent of 51 per cent, in a manner similar to the existing framework for single brand retail. However, the riders are that at least 50 per cent of the total FDI proposed by an investor should be in back-end infrastructure. A statement of accounts would be filed with the Reserve Bank of India (RBI), with a copy to the Foreign Investment Promotion Board (FIPB), disclosing clearly that at no point in time investment in back-end infrastructure is less than 50 per cent. Investment in such back-end infrastructure need not necessarily be made by the same entity that is making the FDI. It could also be made separately by an outsourced entity, specifically commissioned for this purpose.
The minimum FDI to be brought into a project with MBRT would be $100 million. Retail sales locations will be set up in cities with populations of more than 10 lakh (2011 census). An area of 10 km around the municipal/urban agglomeration limits of such cities could also be included in the permissible location. An interesting deviation is that this will not be foisted on anyone. Front-end retail outlets will be set up only in those states where the states agree to allow FDI in MBRT.
Another vital caveat is that 30 per cent of the sales turnover should be made to small retailers, either directly or through wholesale cash-and-carry units set up for this purpose. State governments will be allowed to set conditions for integrating the small retailers/kirana merchants into the value chain. This is important because the UPA chairperson Sonia Gandhi has in the past asked the government to tread cautiously in opening up FDI in MBRT because it could impact neighbourhood grocery stores. At least 30 per cent of the value of manufactured items procured (excluding food products) should be sourced from the small and medium enterprises (SME) sector, once again ring-fencing the lowest common denominator in the food chain.
DIPP has now asked government departments to put in place frameworks to monitor compliance with these conditions. Among the nine departments which have responded, the ministry of agriculture, food processing and Planning Commission have supported 100 per cent FDI in MBRT, while the department of consumer affairs (DCA) supports 49 per cent in MBRT. The department of pharmaceuticals has said that FDI in MBRT be included under the study on regulatory environment for FDI being conducted by the department of commerce.
So if this fdi limit is allowed we can buy pantaloon retail,future capital holding,shoppers stop and trent at current levels.Although pantaloon is in one year low of 228.Now pantaloon can be considered as an investment buy with a time frame of 2 years with a target of 440 plus.Now it is traded around 270 levels.Similarly the flagship co of future group is Future Capital Holdings.The current rate is 140.FCH touched a year low of 129 and touched a year high of 300.Recently FCH had entered into gold loan lending biz which has a good potential in indian market.Moreover Vaidyanathan is the present Vice chairman and MD of FCH who is top paid ceo in india.So consider these shares for investment