Friday, April 26, 2013

Latest Portfolio of Ace Investor Rakesh Jhunjunwala

The top three picks remained as Titan Industries with approx value of Rs.1573 crores,Lupin with Rs.640 crores and Crisil with Rs.490 crores as per today's market price. Tata groups fertiliser and chemical company  Rallis India is worth Rs.242 crores in his portfolio
There are some more investments in small caps like adinath exim,alphageo,provogue etc by RJ.It will be updated soon after their Q4 result announcing

Tuesday, April 16, 2013

Why Nifty Rallied Over 100 Points Today?

Today we had a smart move in Indian market despite fall in other Asian markets and European market.Nifty was trading in range between 5555 and 5683 in today's session.
The main reason for rally in market is due to the the fall in Gold Prices and Crude oil.As we all know that India is importing crude oil and gold and it constitutes major part of imports.This is causing huge increase in current account  deficit for our economy.As gold price cooled to a great extend we need to pay less amount for importing gold.Now  one ounce of Gold is trading at 1361 in International market.
Also Brent crude oil is trading below $100.This also gives some relief into India's Current account deficit.
So it is always better to have current account deficit well under control.Now India's current account deficit is around 5.3% of GDP which is at all time high.
Also in upcoming monetary policy on May 3 Rbi may reduce key rates such as crr and repo rate as WPI inflation cooled to 5.96 lowest in 40 months

Monday, April 15, 2013

STAY AWAY FROM GOLD LOAN NBFC AND JEWELLERS



The price of gold fell to its lowest level in more than 18 months amid fears that sales of the precious metal forced on Cyprus by its desperate financial plight would lead to wholesale dumping by hard-pressed countries in the coming months.
At the end of a week dominated by the plight of the troubled island nation, gold slid below US$1,500 an ounce for the first time since July 2011 in anticipation that Cyprus would raise £400 million (HK$4.8 billion) by offloading some of its reserves.
Share prices also fell on the major European bourses after the gathering of EU finance ministers in Dublin made it clear that there would be no increase to the £10 billion earmarked for Cyprus, even though the expected cost of the bailout has been raised by £6 billion to £23 billion.
While the gold sale by Cyprus is itself small, heavily indebted euro-zone nations such as Italy and Portugal could also find themselves under increasing pressure to put their bullion reserves to work.
"If Cyprus can break the gold market, then [there are] many reasons to be worried, with Slovenia, Hungary, Portugal, Spain and Italy in line," Milko Markov, an investment analyst at SK Hart Management, said. "It is a make-or-break moment for gold ... if the market can't handle the reallocation and Cyprus, then there is really a need for a bear market."

Here are my top sells for the week based on gold price crash in world market.If gold is going down from current levels,I request my clients and followers to reduce exposure to this companies or stay away for some months.The current mkt price is given in the bracket
1)Titan Ltd(249)
2)TBZ(215)
3)PC Jewellers(107)
4)Manappuram(20)
5)Muthoot Finance(150)

Investors rush to sell Kerala banks’ stocks



Kerala-based lenders have seen a sharp erosion in the value of their shares in the past fortnight after Saudi Arabia initiated a clampdown on illegal immigrant workers and brought in regulations that stipulated reservation of 10% of jobs for citizens. The new rule, known as Nitaqat, is likely to impact over 300,000 low- and semi-skilled Indian workers, most of whom are from Kerala.
The deadline to implement the law, originally set for late March, was extended by three months but panic has gripped Indian workers in that country. The Kerala government had moved the centre to address the matter.
Any job losses can have ramifications on the flow of non-resident Indian (NRI) deposits and remittance funds to the southern state, routed primarily through Kerala-based lenders such as State Bank of Travancore (SBT), Federal Bank LtdSouth Indian Bank Ltd (SIB) and Dhanlaxmi Bank Ltd.
Stocks of these lenders have been declining since late March when the new labour norms became known.
Most of these banks generate about 10% of their fee income from the remittance business.
SBT managed Rs.31,000 crore of remittances from the Middle East in the fiscal year ended 31 March. “We are yet to ascertain the impact of the new regulations. According to official estimates only 500-600 people have returned from Gulf but the actual number is not known,” said Bhanu Murthy, deputy general manager, NRI services, at SBT.
Analysts and bankers ruled out any major impact on remittance and NRI deposit mobilization by these banks, saying the clampdown will primarily impact the unskilled, illegal immigrants but not regular employees. They attributed the fall in bank shares to a panic reaction by investors.
“There may not be too much of an impact on the remittance-related fee income and NRI deposits as banks typically fulfil the know-your-customer procedures while accepting such depositors,” said Abhishek Kothari, research analyst at Mumbai-based brokerage Violet Arch Securities. According to him, banks don’t accept deposits from the kind of illegal immigrants who may now be forced to come back.
Abhraham Chacko, executive director, Federal Bank, said the fall in stock prices was just a “knee jerk” reaction to the change in the Saudi law.
“It is true that Kerala would be impacted most because they have the largest share of migrant workers but it is also a fact that these workers do not have accounts in Federal Bank alone. Also, the 10% job quota that Saudi is enforcing will impact labour from other countries like Pakistan and Bangladesh, besides India,” Chacko said.
Chacko said about 7% of total remittances to India from the world are through Federal Bank. India was the top receiver of global remittances in 2012, getting $70 billion, ahead of China, which got $66 billion, according to the World Bank.
“About 25% of our deposits come from NRIs but more than 80% of them don’t stay with us —people spend the money. I think even if there are job losses in Saudi, it won’t be big numbers,” Chacko said.
Federal Bank had total deposits of Rs.51,607 crore as of December 2012.
Dhanlaxmi Bank too ruled out any significant impact. “Major part of the remittances are maintenance remittances (money sent for household expenditure). Such remittances contribute a relatively small portion of our deposits,” said P.G. Jayakumar, managing director and chief executive officer of Dhanlaxmi Bank.
In this point I would like to add South Indian Bank at 20-22 levels for target of 30 in next one year.I strongly believe SIB will bounce back from this levels of 23

Thursday, April 11, 2013

Infosys Q4 Dissapointed



Infosys Ltd’s fourth-quarter revenue growth fell short of expectations and its guidance for the current fiscal year came in below the industry average as India’s second-largest software services firm said the economic climate was a cause for concern.
The Infosys stock plunged 18.5% to Rs.2,379 at 9:32 am on Friday, while the benchmark Sensex was down 1.4% to 18,292.67.
The company forecast revenue growth in 2013-14 at 6-10%, less than the 12-14% that the Nasscom industry lobby has forecast for the year, as part of its earnings announcement for the year ended March on Friday. This is the second consecutive year that the company has forecast revenue growth lower than average industry expectations.
Infosys reported fourth-quarter sequential revenue growth in dollar terms at 1.4% compared with expectations of at least 3% growth

Wednesday, April 3, 2013

WAIT AND WATCH FOR MANAPPURAM


Gold is falling day by day.Already Fallen Rs.440 yesterday and today again tanked Rs.200.Currently gold is trading at Rs.21600 for 8 gram
So Traders keep away form gold related NBFC like Manappuram and Muthoot Finance for some days as fall in gold price will adversely effect Manappuram profit margins and biz