Rasoya Proteins spurts 76.4% in 14 sessions

Rasoya Proteins was locked at 5% upper circuit at Rs 0.76 at 10:22 IST on BSE, with the stock extending recent sharp rally.

Meanwhile, the S&P BSE Sensex was down 80.06 points or 0.28% at 28,389.61.

On BSE, so far 13.70 lakh shares were traded in the counter as against average daily volume of 40.76 lakh shares in the past one quarter.

The stock opened with an upward gap surging by the maximum permissible level of 5% and remained locked at 5% level at Rs 0.76 so far in the day. The stock had hit a record high of Rs 20.80 on 23 September 2014. The stock had hit a 52-week low of Rs 0.41 on 2 March 2015.

The stock had outperformed the market over the past one month till 19 March 2015, surging 30.36% compared with the Sensex's 3.37% fall. The scrip had, however, underperformed the market in past one quarter, sliding 59.67% as against Sensex's 4.01% rise.

The small-cap company has equity capital of Rs 170.89 crore. Face value per share is Re 1.

Shares of Rasoya Proteins have rallied a whopping 76.74% in fourteen trading sessions from a recent low of Rs 0.43 on 28 February 2015.

Rasoya Proteins' consolidated net profit fell 81.3% to Rs 3.41 crore on 73.4% decline in net sales to Rs 177.85 crore in Q3 December 2014 over Q3 December 2013.

Rasoya Proteins is one of India's leading soyabean processor. Its core concentration is on soya based products. The company deals with a varied range of soya products in domestic and international markets.

Courtesy: Capital Market

Steel sector seeks government action on cheap Chinese imports 

T V Narendran
Photo: Live Mint

KOLKATA, 20 Mar, 2015: Tata Steel today said the Indian steel industry is seeking support from the government to face the challenge posed by import of steel from China and ther countries at much lower prices. 

"Indian steel industry is struggling because a lot of cheap imports are coming in, including from China, and they have approached the government. Let's see what happens," Tata Steel Managing Director T V Narendran told reporters on the sidelines of a CII event. 

Asked about the impact of increase in import duty on steel in Budget proposals for 2014-15, Narendran said: "In the budget they have only increased the peak duty, they have not increased the basic duty so that's something we are discussing with the government." 

He said the current import duty on steel in India was among the lowest in the world and if the government wanted to encourage local manufacturing and local investment, then there should be some sort of support. 

According to his estimates, total steel import by India in 2014 was around 8 million tonnes. 

India's steel imports during the first 10 months (April-Jan) of 2014-15 stood at 8.127 million tons, up 69 per cent as compared to only 4.803 million tons imported during the corresponding period of 2013-14, according to India Steel Market Watch data. 

There is also a concern because in Russia the rouble is ruling very weak and that is also creating a pressure, Narendran pointed. 

Asked about imposing dumping, he said: "That is the point of discussion because dumping is a very technical definition, but what industry is saying that there should be some sort of support because establishing dumping cases take some time." 

Courtesy: The Economic Times

WINNING STROKES: THINK DIFFERENT

Rasoya Proteins Ltd today touched Rs.1 in the NSE. I think you remember, it was recommended around 0.60. The stock gave more than 50% return in less than one month. In NSE it closed at Re.0.90, while in the BSE it hit the buyer freeze at Re.0.73. There is in fact no negative news in the counter, and the scrip should slowly move up in the coming days. You should stay invested. 

Jaiprakash Power Ltd today touched Rs.11.40 in the NSE before suddenly going for correction at the end of the day. However, this share is a buy on every dip, as lot of positive developments have taken place in the company. 

Today, my earlier recommended PC Jeweler Ltd made a new 52-week high at Rs.367.25 in the BSE, before closing at around Rs.338.95. In the morning trade even Gitanjali Gems Ltd moved to Rs.49.35 in the BSE before the selling in the late hours, shed some of the gains as the scrip closed at Rs.46.90 in the BSE.  The point to be noted is that many of the established players are running after online selling platforms. This is expected to have a dramatic change in their top and bottomlines, due to low overhead costs. The investors should buy the stock of Gitanjali Gems Ltd and keep holding. 

A couple of days back Elecon Engineering Co Ltd was recommended to the Paid Group members at around Rs.59.40; the scrip today touched Rs.71.85 on the NSE, before closing at around Rs.66.20. The target of Rs.100 is still intact and hence risk taking investors can hold the scrip with a SL of Rs.57.

Nifty today went in for late selling and closed just above the support of 8630. With the current NDA government not doing too well in all fronts, it is difficult to say, where the Nifty will go in the near future. Narendra Modi and his Finance Minister, Arun Jaitley, along with other council of ministers are a total flop till now. The market has moved up simply on media hype on Narendra Modi and therefore as said earlier it is very difficult to say, in which direction Nifty will move in the future. Unless the NDA changes at least the Finance Minister, I feel this rot would continue. Anyway, let us hope for the best. 

Jewelers in India Jump Online for $22 Billion E-Commerce Pie

[Editor: In this connection, I suggest you buy in bulk the shares of Gitanjali Gems Ltd at around Rs.47 and keep holding. 

Also, I hope you have already taken position in the hidden gem, Jaiprakash Power Ventures Ltd (Rs.11.10) after lot of positive developments in the company. Now if the things go as per schedule, then the scrip could even touch the all time high of Rs.70 Plus. However, for the moment the target is Rs.22, which I feel is easily achievable. Meanwhile, yesterday's call Elecon Engineering Co Ltd (Rs.68.50) at around Rs.59.30 is up more than 15 % today. Those Premium (Paid) Members, who bought me, say Cheers!!]
March 17, 2015: In India, where buying gold traditionally means a trip to the trusted family jeweler, a growing e-commerce market forecast at $22 billion in three years is starting to challenge all conventional wisdom.

Gitanjali Gems Ltd., India’s biggest diamond and gold jewelry retailer, expects online sales to account for much as 20 percent of its sales in two to three years from about 1 percent now. The growth potential convinced Ratan Tata, former chairman of the Tata Group, to invest in Bangalore-based online jewelry store BlueStone last year.

Jewelers are tying up with Amazon.com Inc., Flipkart Online Services Pvt. and Ebay Inc. after the government last year eased import curbs on gold bars and coins. The total online retail market in India will be about $6 billion this year, driven by free delivery and heavy discounting, Gartner Inc. estimates. That may grow to $22 billion by 2018, CLSA Asia Pacific Markets predicts.

“Indian consumers prefer to touch and feel the jewelry before buying, but the change in consumer behavior will happen quite fast,” Gitanjali’s Chairman Mehul Choksi said in a phone interview. ‘We have tied up with all the major online platforms and we are always looking for more tie-ups.’’

Gitanjali, which sells its diamond and gold jewelry through more than 4,000 points of sales spread across India, the U.S., the Middle East and Europe, uses a battery of Bollywood actors including Shah Rukh Khan and Katrina Kaif as brand ambassadors.

Offering Convenience

The Mumbai-based company, whose sales declined 24 percent to 124.36 billion rupees ($2 billion) in the year through March 2014 because of import restrictions, now retails through platforms including Amazon.com, Flipkart.com, EBay, and Jewelsouk, Choksi said.

Established retailers are looking at online stores already selling jewelry, besides promoting their own, according to Gaurav Singh Kushwaha, founder and chief executive officer of BlueStone, which sells everything from solitaires, rings, earrings, pendants, bangles and bracelets.

“Online retailing offers convenience from the comforts of an individual’s home and moreover allows other incentives like giving them time to decide, not make it obligatory for customers to purchase at their very first visit,” Kushwaha said. “Offline jewelers realize the potential and the need for being present online.”

The online jewelry market may be worth as much as $2.5 billion in the next five to 10 years, BlueStone estimates. Currently it accounts for less than 0.1 percent of the $55 billion jewelry market, it says.

Topping China

Indians bought 662 metric tons of gold jewelry valued at $26.9 billion in 2014, the most since 1995, the World Gold Council said last month. Total demand including for gold bars and coins was 842.7 tons, helping India surpass China as the world’s largest consumer last year, the council said.

Bullion demand is seen expanding this year to between 900 tons to 1,000 tons, the council says. Bullion is bought in India during festivals and marriages as part of the bridal trousseau or gifted in the form of jewelry by relatives.

Shares of some Indian jewelers have advanced after the government relaxed most restrictions on imports. Titan Co., the biggest by market value, has rallied 60 percent in the past year, compared with a 32 percent gain in the benchmark S&P BSE Sensex. PC Jeweller Ltd. more than tripled in the same period, while Gitanjali declined 22 percent.

The online market allows companies to offer customers a wider choice of designs without actually keeping physical stocks, said Rajeev Sheth, chairman of Tara Jewels Ltd., which began selling through Amazon starting December.

Global Trends

“The major driver for getting jewelry online is changing consumer behavior, especially of young Indian women, who are exposed to global trends and are increasingly shopping online,” Sheth said.

Earlier this month, New Delhi-based PC Jeweller tied up with U.S.-based online jeweler Blue Nile to evaluate the Indian market for potential sales in the long term. The jeweler plans to develop its own website to replicate the comfort and convenience associated with shopping at its luxury showrooms, it said March 4.

Titan may buy a stake in Chennai-based online jewelry retailer Caratlane, which counts Tiger Global Management LLC as its investor, the Economic Times newspaper reported last month. The jeweler said the report was “speculative in nature.”

Titan, founded by the Tata Group, currently sells its jewelry on its website besides its nationwide network of retail outlets.

Kushwaha, who started BlueStone in 2011, says building trust in an industry dominated by traditional retailers has been the biggest challenge so far.

Along with Caratlane, BlueStone offers customers jewelry of their choice delivered at home for trial at no cost.

“We understand the concerns of a first time online jewelry shopper and our ‘Home Try-on’ service is designed to help address them,” he said.

Courtesy: Bloomberg

DO YOU KNOW?

B F Utilities Ltd, which was recommended around Rs.129-131, made a 52-week high of Rs.890, on 10th March, 2015. The scrip today closed at Rs.775.20. 

The risk taking investors can still hold the shares of the company for a target of Rs.920, keeping a SL of Rs.660. The stock gave a superb return of more than 6 times in just one year. 

WINNING STROKES: THINK DIFFERENT

Yesterday, Elecon Engineering Ltd was recommended at around Rs.59.30. The scrip today made a high of Rs.61.20. Today the scrip closed at Rs.59.35.

There is no stopping of Rasoya Proteins Ltd as the scrip hit another buyer freeze in both the NSE and thee BSE. In the NSE there were 35,41,902 buyer at Re.0.95. This is another scrip after Western India Shipyard Ltd, which has given more than 50% returns in less than 2 months. 

Jaiprakash Power Ltd remains a strong buy at the CMP of Rs.11.14. There are lot of positive developments taking place in the company. However, I know many of you will not buy this scrip now, but will run after it after it crossed Rs.14. Unfortunately, some traders think that share market is a CASINO, which means, you put Rs.100 and it becomes Rs.1000 in a matter of few hours. 

Today, the Premium Members, were informed during the market hours that: 'The market looks slightly oversold and a rise above 8680 may attract buying interest--till then it is no-man's game. The investors are suggested to take a wait and watch policy". The buying at last came above 8680 and the Bulls finally managed to close Nifty at 8,723.30 up 90.15 points. The trend in the Nifty has again turned slightly bullish, after Nifty closed above 8700. Thus the Benchmark indices ended firm with Nifty reclaiming 8,700 mark amid choppy trades on fresh capital infusion by investors owing to strong global cues. Moreover, today, FIIs were Net Buyers to the tune of Rs.192.56 Cr, while the DIIs sold shares worth Rs.243.69 Cr. In case of Futures market, according to the experts, a close above 8776 is likely to change the trend into positive and is expected to drive the Nifty towards 8900 mark.

The shares of Jenson and Nicholson (India) Ltd (Rs.8.660, an old Paint Company whose plant in West Bengal is closed and has huge carry forward losses is being jacked up by a section of operators in Mumbai and Gujarat, on the speculation that it would get a relief package from BIFR. The scrip today touched an intra-day high of Rs.8.86. Stay away from such counters. When you are getting A-group scrips like Jaiprakash Power Ltd at Rs.11.14. GMR Infrastructure Ltd at Rs.16, is there any need to look at these kinds of rotten paint companies. The stock of Jenson and Nicholson Ltd with FACE VALUE of Rs.2 has already become 4-times, in the last one year. The BIFR thing according to my sources is going on since the last 6-7 months, but operators decided to push up now, as it is obvious that they would distribute the shares, like they did in case of NTC Industries Ltd (Rs.71.10), Global Vectra Ltd (Rs.44), etc. 

Jaiprakash Power Ventures Ltd and FCCB

Photo: CloudDataNet

J P Power Ventures Ltd (Rs.11.10) has to pay $200 million worth of foreign currency convertible bonds (FCCBs) which were due on 13 February but are likely to be rescheduled. The bondholders will vote on the firms’s proposed repayment schedule in a 30 March meeting.

As part of the proposed rescheduled payment agreement, the firm looks to extend the maturity date of the FCCB to 13 February 2016. The proposed repayment schedule will include an upfront payment of $25 million on the effective date of rescheduling. Further, the company proposes to pay another $75 million on the receipt of the sale proceeds for its two hydropower plants to JSW Energy Ltd. The remaining amount is to be paid on or before 13 February 2016. Hence this issue is more or less closed. 

Debt for the Jaypee group is seen at around Rs.60,000 crore, of which Jaiprakash Power Ventures alone had debt of Rs.17,887.72 crore at the end of the September quarter. The firm has started talks with its bankers to refinance debt worth Rs.10,000 crore. 

In the last two years, the group has been selling assets to reduce debt. In a recent deal, Aditya Birla Group’s Ultratech Cement Ltd agreed to buy Jaiprakash Associates’s two cement plants in Madhya Pradesh for Rs.5,400 crore.

The stock should now slowly move towards Rs.14-15, especially after Jaiprakash Power Ventures bagged the Amelia (North) mine in Madhya Pradesh quoting Rs.712 per tonne and the Second Unit of 660 MW of the Jaypee Nigrie Super Themal Power Project or JNSTPP starting commercial operation with effect from 00.00 hours of February 21, 2015. 

It therefore a screaming buy at Rs.11.10..............

DO YOU KNOW?

Recently, Mr.G S Roongta wrote in a Bombay based Financial Weekly: "The pre-budget euphoria generated was dashed as the budget proved to be most disappointing to the middle class in general and to the investors in particular".

Now, while, the whole world, especially the "Blind-Modi-Bhakts" (Blind Modi fans), shouted that Narendra Modi government's 2016 budget was EXCELLENT, it is few of us who dared to question the wisdom of Mr.Arun Jaitley and the PM, Narendra Modi; through our writings in various forums and platforms. 

Moreover, when Mr.J Mulraj, a well-known columnist wrote in Hindustan Times on March 8, 2015: "Finance minister Arun Jaitley presented an excellent, well thought out budget", I said, 'If this Plain-Vanilla budget can be called excellent, then I have nothing to say'. 

Though this drew lot of criticism from the treasury benches but at the end truth triumphs.

SBI offers personal loans to existing borrowers at housing loan rates

[Editor:  Why anyone has to go for loan to SBI or other Financial Institutions for LOAN? You come to me, I will arrange LOANS at interest rate of 5-12% from Financiers. You will have to pay one time service charge of 5-7%, when the loan has been disbursed into your account. The Loans however should be above Rs.50 lakhs]

MUMBAI,Mar 12, 2015: State Bank of India is offering a bonanza to its existing home-loan customers. They can take personal, or top-up, loans at the same rate that they are paying on home loans under a limited-period offer from the nation's top lender.

In effect, an existing borrower can take a personal loan at 10.15%, provided he had been paying his homeloan EMIs on time. For women, this will be even cheaper at 10.10%. The rates imply a 0.35-0.40 percentage point cut in the top-up loan rates that SBI has been charging.

It charges 13.50-18.50% on personal loans to other customers. A senior SBI official, who did not want to be named, said the rate on top-up loans was lowered to boost the bank's loan book. "Also it is a safe bet for the bank to attract their existing customers with good track record to borrow from them rather than approaching its rival banks."

The rate reduction comes at a time when RBI has signalled a softer interest rate regime by cutting policy rates twice - both by a quarter percentage point - in 2015.

Despite the signal from the central bank and a nudge from the finance ministry, banks have mostly stayed away from cutting rates, citing subdued demand for loans and arguing that a reduction would hurt their bottom lines in the final quarter.

Most banks have pegged their base rate - the rate below which they don't lend — in the range of 10% to 10.25%.

To attract customers, SBI has also waived off the processing fee, but at the same time said the reduction was valid only for a limited period. The bank plans to charge its existing home-loan borrowers 10.5% for top-up loans from next fiscal year.

A woman home-loan borrower can take up to Rs 50 lakh at 10.10%. The tenure of the top-up loan will be linked to the customer's outstanding tenure of the home loan. Top-up loans between Rs 50 lakh and Rs 2 crore will cost 10.75%. For Rs 2 crore to Rs 5 crore, the rate will be 11.25%. Analysts say the move will help SBI achieve its loan growth targets.

The bank has lowered its credit growth target to 11% for this fiscal year through March from the originally planned 14%.

"Even 11% (growth in credit) is also a stretch," Chairman Arundhati Bhattacharya had said while announcing thirdquarter results.

The bank's advances portfolio rose just 2% in the first nine months of this fiscal year.

SBI's home-loan book rose 13.2% year-over-year to aboutRs 1.56 lakh crore as of February 2015. Top-up loans totalled Rs 4,800 crore.

Courtesy: The Economic Times 

Cheap Chinese steel floods into India, spelling disaster for its ship breakers

[Editor: While it now a well known fact that the Cheap imports are creating severe problems for the domestic steel and ferro-alloys sector, (but) our Finance Minister, Mr.Arun Jaitley seems to be unfazed. No one therefore, knows when he will come up from deep slumber and recommend anti-dumping measures to protect the domestic interests] 

13.3.2015: India’s imports of cheap Chinese steel between April 2014 and January 2015 were almost treble those of the previous fiscal period.

The country imported more than 2.9m tonnes, exerting more downward pressure on the scrapping rates offered by Indian ship-breaking yards.

Confirmation of the massive increase in steel billets from China came in a written reply to a question in the Indian parliament’s lower house, the Lok Sabha, this week, prompting calls for the introduction of punitive duties or even a temporary ban to give Indian producers some respite.

Steel and mines minister Vishnu Deo Sal said the government’s role was “limited” as steel was a deregulated sector – however, he offered the olive branch that the government was considering including a duty increase on semi-finished steels in the coming budget.

A cooling of the world’s second-biggest economy has left Chinese steel producers with too much product on their hands and, as a consequence, this is finding its way to export markets.

According to broker sources, Chinese steel scrap is on offer in the $250-$275 per tonne range, ex-quay Indian port, and this has had a disastrous impact on ship-scrapping rates.

Respectable recycling rates of around $500 per LDT were obtained by shipowners last June, but by year-end rates had plunged to below $400.Now, due to the Chinese competition, there are reports of sales at $300 per LDT, or less.

Understandably, owners and brokers are sitting tight, hoping to ride out the downturn, with just a few vessels currently being scrapped – largely due to acute cash flow problems.

Moreover, the vessel demolition market is also being challenged by a Chinese state subsidy of $150 per GRT to owners of China-flagged ships recycled at domestic breaking yards.

Scheduled to last until the end of 2015 – or longer– unsurprisingly, this subsidy has virtually excluded all internationally-flagged ships from scrapping in China. And it has added even more pressure to recycling rates in the Indian subcontinent.

The pessimistic outlook for scrapping rates comes at a bad time for container shipping, given the flood of newbuilds expected to hit the seas this year. As a result, owners may decide to lay-up surplus ships rather than accept depressed scrapping rates, hoping for new employment for them until scrapping rates recover.

Moreover, if fuel prices continue at their current level and ships, in particular those on ad-hoc voyages, speed up to reduce daily hire costs, fewer vessels will be required.

Consequently even more will need to be either idled or scrapped.

Courtesy: The Loadstar

Narendra Modi Government: The Politics of Somersault

Abhishek Banerjee  is the nephew
of WB CM, Ms.Mamata Banerjee
Photo: All India Trinamool Congress

Yesterday, 12 March 2015, the Rajya Sabha passed the Insurance Laws (Amendment) Bill, 2015, paving the way for the increase in the limit for foreign investment in the insurance sector to 49% from 26%. The bill has already been cleared in the Lok Sabha. The Bill will become an Act once the President signs it.

However, a point to be noted is that the UPA government Government had come-up with a similar bill or which was more or less the same, earlier. There were hardly any major changes as compared to the present one. But at that time the BJP OPPOSED the BILL in the Parliament........Huh!

According to The Economic Times, December 6, 2013: The BJP leader Yashwant Sinha at that time said that his party was willing to support the Insurance Laws (Amendment) Bill, 2008 provided the government shed its obstinate stand of providing 49% FDI in the sector.

It would not be an  exaggeration to mention here that the Bharatiya Janata Party had opposed reforms on a number of occasions in the past.

In case of Insurance Bill, while the Standing Committee on Finance led by former finance minister and BJP leader Yashwant Sinha had advised against hiking the foreign direct investment cap in the insurance sector to 46%, the BJP along with Left parties had also opposed any such move way back in 2004.

“Hum virodh karenge (we will oppose it),” former Prime Minister Atal Bihari Vajpayee had said in July 2004 when former finance minister P Chidambaram had announced in his Budget speech for 2004-05 that the UPA would amend increase the FDI cap in insurance sector to 49% from the existing 26%.

While in later years the party (BJP) had once again expressed tacit support to the plan, its stance changed after Sinha had in December 2011 in its report on the Insurance Laws (Amendment) Bill, 2008, opposed a higher limit for foreign investments in the sector.

“The Committee are of the considered view that in the present global economic scenario, any further hike in FDI at this juncture may not be in the interest of the Indian insurance industry, whereby the common man too would not stand to gain through insurance, particularly as a means of social security,” said the report, adding that insurers should instead raise capital from the markets. On being contacted by The Indian Express, Sinha declined to comment on the issue. 

But with the dissolution of the 15th Lok Sabha, the report seems to have been set aside. Finance minister Arun Jaitley tabled a fresh Bill in Parliament to raise the FDI limit in the insurance sector.

Interestingly, the senior Bharatiya Janata Party (BJP) leader Chandan Mitra, who was chairman of the Rajya Sabha select committee that recently submitted a report endorsing the Insurance Laws (Amendment) Bill, 2008, says he won over Congress members of Parliament (MPs) by persuading them it was “their Bill”.

The Narendra Modi government has become a champion, in taking U-turns from their previously stated positions. This has already drawn sharp criticism from a large section of the intelligentsia.  

Meanwhile, in December last year, the National president of All India Trinamool Yuva, Abhishek Banerjee, in an apparent dig at Prime Minister Narendra Modi termed the BJP as "Bharatiya Joker Party".

India plans anti-dumping duty on some steel from China, others 

[Editor: This was long overdue and I am anticipating positive moves from the FMO. But I want a blanket increase in import duty regardless of the type of steel / ferro alloys. If some countries are constantly dumping in India due to slump in sale in their own markets, then India has to take immediate measure to arrest such imports. Now from tomorrow the price of most of the steel stocks are expected to move up on the twin reason: (i) Passing of Land Reform Bill in the Lok Sabha and (ii) trade ministry recommending anti-dumping duties for some industrial grade stainless steels. I have already recommended the name of Rohit Ferro Tech Ltd (Rs.7.91) which is a producer of various grades of stainless steels: 

• Austenitic
• Ferritic
• Martenistic
• Austenitic-Ferritic grades
• Stainless Steel with special grades of Precipitation hardening, Cold heading and Electrode quality etc

Another of my earlier recommendations, Jai Balaji Industries Ltd (Rs.12.21) could also be benefited to some extent, as it is one of the largest manufacturers of Ferro Alloys in Eastern India. It has a production capacity of 1,06,000 MTs per annum which includes 5 Submerged Arc Furnaces in Durgapur, West Bengal; two 9 MVA Furnaces and three 16.5 MVA. 

In the current set up the concentration is on production of manganese based Ferro Alloys such as Ferro Manganese and Silico Manganese. Bulk Ferro alloy as per International / Indian Standard Specification used to manufacture mild steel, alloy steel and stainless steel]

NEW DELHI, 11 Mar, 2015: The trade ministry has recommended anti-dumping duties ranging from $180 to $306 per tonne for some industrial-grade stainless steel imported from China, Malaysia and South Korea in a bid to protect local industry. 

After a year-long investigation based on complaints from Jindal Stainless Ltd, the trade ministry said it found that the domestic industry was suffering "material injury due to such dumped imports" and that a definitive measure was required to stop it. 

The recommendations, made public on Wednesday, are expected to be implemented by the finance ministry within three weeks and will stem the flow of surging imports, NC Mathur, president of the Indian Stainless Steel Development Association, said. 

Mathur said the grades subject to the dumping duty can cost $1,270-$2,070 per tonne and are used mainly to make equipment for industries like dairy, oil refinery and railways. 

India consumes about 1 million tonne of this type of stainless steel and more than 40 per cent of that is imported, mainly from China, a trade which is growing at up to 15 per cent a year. 

China's annual stainless steel surplus is more than 4 million tonnes, compared with India's annual demand of about 2.6 million tonnes and which leads to cheap supplies coming in from China, Mathur said. 

Steelmakers from Asia to Europe are facing increasing pressure from a rise in cheap imports as Russia and Ukraine, armed with weaker currencies, join China in pushing surplus output on to world markets. 

Jindal Stainless shares ended up 10 percent at 40.50 rupees on Wednesday on the duty recommendations, their highest closing price in 2.5 months. 

Mathur said the steel industry also welcomed the government's decision to provide for an increase in the import duty on steel to 15 percent without any major procedural delays. Earlier, the government had set a limit of 10 per cent while the actual duties are below that. 

The provision will allow the government to raise the duty whenever it wants just with a notification, Mathur said. 

Courtesy: The Economic Times

Jaiprakash Power Ventures win Amelia North coal mine

[Editor: Apart from this news, you must have seen the recent media reports that Jaiprakash Power Ventures Ltd’s second unit of 660 MW of (2 x 660 MW = 1320 MW) Jaypee Nigrie Super Themal Power Project (JNSTPP), has started commercial operation with effect from February 21, 2015. Thus, 1320 MW JNSTPP of the company stands fully operational. Jaiprakash Power Ventures is part of India’s leading Infrastructure conglomerate - Jaypee Group. Currently the company operates the largest hydroelectric power plant in the private sector in India. Its power projects which are in different stages of implementation include Hydro, Thermal and Transmission. Therefore, it is one best times to invest in the shares of Jaiprakash Power Ventures Ltd (Rs.11.50), with all the positive developments in its stride. Buy at around Rs.11.50, for a short term target of around Rs.14-15]

NEW DELHI, February 17, 2015, : Jaiprakash Power Ventures today bagged the Amelia (North) mine in Madhya Pradesh quoting Rs 712 per tonne, the highest among 11 firms including Adani Power, BALCO and Essar Power.

Bids are underway on the fourth day of auction for another two coal blocks - Ardhagram in West Bengal and Chotia in Chhattisgarh to be given to firms in non power sector.

"Jaiprakash Power the highest bidder at (Rs) 712 (a tonne) for Amelia North," Coal Secretary Anil Swarup tweeted.

The ten companies in the race for Amelia (North) mine apart from Jaiprakash Power Ventrues Ltd were - Adani Power, Bharat Aluminium Co Ltd (BALCO), Essar Power M P Ltd, GMR Chhattisgarh Energy Ltd, GVK Power Goindwal Sahib Ltd, Jindal Power Ltd, JSW Energy Ltd, KSK Mahanadi Power Company, RattanIndia Power Ltd and Reliance Geothermal Power Pvt Ltd.

The mine has extractable reserves of 70.28 million tonne (MT).

The other two mines - Ardhagram and Chotia for which bidding is on, have extractable reserves of 19.29 MT and 13.57 MT respectively.

Earlier tweeting on auctions, Swarup said "coal block auction gets underway on the fourth day adding that poor states will reap benefits of coal block auctions."

The five companies vying for Ardhagram coal mine are Easternrange Coal Mining Pvt Ltd, Monnet Ispat and Energy Ltd, OCL Iron & Steel Ltd, SS Natural Resources Pvt Ltd and Visa Steel Ltd.

The technically qualified bidders for Chotia mines are Balco, Godawari Power & Ispat Ltd, Hindalco Industries, Prakash Industries, Rungta Mines and Ultratech Cement Ltd.

Yesterday, Jai Prakash Associates, Durgapur Projects and B S Ispat -- had bagged one mine each, even as the government said that it expects more aggressive bidding for blocks as the mines were already producing.

After the Supreme Court cancelled allocation of 204 mines in September, the government decided to auction the blocks. It has put 19 blocks on sale in the first tranche. The last day for the auction of first lot of mine is February 22.

Courtesy: The Economic Times

Time to BUY the stocks, from INFRASTRUCTURE sector..?

Photo: Daily Mail, UK

The NDA government on Tuesday (10 March, 2015) managed to push through the contentious land acquisition bill in the Lok Sabha. 

Now though it is clear that the path ahead for this bill in the Rajya Sabha would hardly be smooth, and it would have to stand the test of Parliamentary scrutiny; it is good note that one milestone has been achieved; as far as the infrastructure sector is concerned. 

Moreover, through the passage of this bill the NDA government in its right earnest has kick-started the much needed "Game Changer Reforms", which is likely to bring in right kind of environment for investment and remove impediments that delay projects. 

The point which is to be noted here is that: Restrictions on buying land are holding up projects worth nearly Rs.20 lakh crore and the industry is impatient for clearances. So, there is huge merit in the law as it fits well with the NDA Government's long-term plan for growth.

Though a section of the Indian media is trying to show that by passing the bill, the NDA government represents the rich and is against the poor, I feel some hard decisions is the need of the hour, for benefit of the country men. I feel this will change the perception of the Urban middle class towards the NDA and infact help them in future polls. 

Therefore, it is time to buy the stocks of INFRASTRUCTURE COMPANIES in BULK and keep holding. I have already recommended a few like Jaiprakash Associates Ltd (Rs.26.90), Jaiprakash Power Ventures Ltd (Rs.11.39), IVRCL Ltd (Rs.17.25), GMR Infrastructure Ltd (Rs.16.65), IRB Infrastructure Ltd (Rs.240.10), Jindal Saw Ltd (Rs.72.30) and the like, in the past. However, you can have your own researched scrip in this space--buy and keep holding. 

WINNING STROKES: THINK DIFFERENT

Jaypee Nigrie Super Themal Power Project

Genera Agri Crop Ltd hit another buyer freeze today at Rs.4.67. The scrip is expected to double from the recommended price--so stay invested. It is not clear why the exchanges is still keeping it in the T-group, when hardly there is any volume in the counter!!  Hope the exchanges will note my concern, and bring it out of the T-group soon. 

Today, the stock of Jaiprakash Power Ventures Ltd was recommeended around Rs.11.50--11.70. The scrip though closed at Rs.11.33 in the BSE and Rs.11.50 in the NSE today, but will move up in the short term, due to two very positive news: (i) Many analysts have started to put a buy on the share of Jaiprakash Associates Ltd which will have a positive effect on all the group companies and (ii) Jaiprakash Power Ventures Ltd recently announced that the Second Unit of 660 MW of the Jaypee Nigrie Super Themal Power Project or JNSTPP has started commercial operation with effect from 00.00 hours of February 21, 2015. Jaiprakash Power Ventures Ltd earlier announced on September 03, 2014, regarding the commencement of commercial operations in the First Unit of 660 MW (2 x 660 MW - 1320 MW), Jaypee Nigrie Super Themal Power Project or JNSTPP (A Division of Jaiprakash Power Ventures Limited). Thus, 1320 MW JNSTPP of the Company stands fully operational. Therefore, a strong buy is recommended in the counter for a target of Rs.14, in the short term. 

Rasoya Protein Ltd hit another buyer freeze in the BSE at Re.0.53. In the NSE the scrip touched Re.70, hitting another upper circuits. The scrip will be slowly moving towards Rs.3, in the coming days. 

Western India Shipyard Ltd today hit the lower circuits, after profit booking was suggested in the counter, a couple of days back. The scrip has given more than doubled in the last one month.

Those who are holding the shares of Gitanjali Gems Ltd (Rs.48.25) have reasons to cheer as the government in an attempt to utilize the idle gold in the economy, is likely to launch the gold monetisation scheme and sovereign gold bonds by May, 2015 according to ET Now. This paves the way for a reduction in the gold import duty, in the short term. Moreover, the government of India should come up with measures to give cash incentives to the jewelers, who are into exports. The current 10% import duty on Gold makes the exports expensive and therefore, makes them less attractive to the overseas buyers who are generally cost conscious. 

Either Join the Premium Service or allow my firm to trade on your behalf to get scintillating returns from the market. This is the time to deploy fresh funds in the jubilant stock market and make millions with the help of Equity / Stock Market Experts. Many have joined the service during the last few months--you can also be a part of that team.

Modi's search for an economic ideology

Photo: DNA India (Edited version)

New Delhi  March 9, 2015: Many harboured the belief that Finance Minister Arun Jaitley’s Union Budget for 2015-16 would mark a decisive rupture from the past, that it would articulate a coherent, cogent right-of-centre economic ideology to counter the hegemonic Nehruvian narrative that had dominated policy discourse in India. But though there were traces of a rightward shift in the budget, it seemed bereft of ideological moorings. 

This hesitance, or reluctance, of a party that is avowedly socially and culturally rightist to articulate a centre-right economic ideology is mystifying. On key issues of privatisation and subsidy reform, the government missed the opportunity to articulate a position that would mark a significant departure from the past. 

On the issue of privatisation of public sector entities, although the finance minister has laid out an ambitious agenda of divesting the government’s stake with a proposed target of Rs.61,000 crore – a figure that no government, including this one, has ever met – he still proposes to continue subsidizing loss making PSUs such as Air India. This is an ideologically contradictory position if the government fundamentally believes in rolling back the boundaries of the state. The Prime Minister’s statement that government has no business of being in business remains a hallow pledge 

Subsidy reform was another area where the government could have staked out a different position. To the extent that the present dispensation would curtail the programmes of the earlier regime and shift from universal schemes to targeted schemes, it would have been welcome. But precious little was said on both food and fertiliser subsidy. While there were references to so-called game changers such as the JAM trinity – Jan Dhan, Aadhar and Mobile – to implement the direct transfers, the Budget did not provide any roadmap or any clarity on the shift. The interim report of the Expenditure Commission to rationalise government expenditure and the Shanta Kumar committee report which recommended shifting to cash transfers also found no mention in the speech. 

FIIs are exiting Indian Markets

But to be fair, certain policy measures do indicate a shift in economic thinking. The emphasis on increasing public investment marked a decisive shift away from the previous dispensation’s consumption-oriented approach. Further, by accepting the recommendations of the 14th Finance Commission to devolve a higher share of untied funds to the states, the government has moved firmly in favour of economic federalism. Though on the latter, the central government has ended up levying additional cess and surcharges, revenues it does not have to share with the states. 

But the absence of a clear underlying economic ideology in the Budget – good governance is not an ideology, nor is development – has left many wondering whether the new government will indeed articulate a counter-narrative to the left-of-centre ideology the Congress has traditionally hewn to. As one analyst put it: Is Modi indeed the libertarian they had hoped for? 

Part of the yawning gap between expectations and reality stems from, as an economist who was part of the pre-Budget consultations at Niti Aayog puts it, “a misreading of Modi’s tenure at Gujarat and confusing what was essentially pre-election rhetoric with reality”. Ardent supporters extrapolated statements like “Minimum government, maximum governance” and “Government has no business of being in business” to mean a rolling back of the frontiers of the state, equating Modi with torchbearers of the modern right such as Ronald Reagan and Margaret Thatcher. But extrapolations never quite match up with reality. 

“Modi seems more inclined to improving the performance and profitability of public sector undertakings by reducing political interference and giving managerial autonomy rather than relying on outright privatization. He believes that both the private sector and the public sector have important roles in well regulated market economy”, added the economist. 

Another reason, a BJP spokesperson says, centres on keeping the faithful in check. Articulating a genuine right-of-centre economic agenda he believes “is likely to provoke strong criticism from among others various sister organisations in the larger Parivar.” Thus the compulsion of keeping the wider family in check and firmly behind the government would necessitate not having an explicit rightist ideology. 

The other and probably the most critical reason, the spokesperson put forth, challenges the very notion that genuine right of centre political parties can flourish in India. The reluctance he says stems from the line of thinking that, “no matter the size of the economy and growth rates, India is a poor country and thus doing away with subsidies and reducing the role of the government is likely to provoke a severe backlash.” So to expect the government to abdicate its existing role and roll back the boundaries of the state is being politically naive. This explanation also fits well with the government’s attempts to paint it as a pro-poor budget. The ghost of the India shining campaign looms large. 

Thus while political pragmatism may trump ideological convictions, what is indeed surprising is making a virtue out of adopting an incrementalist approach. If incrementalism is indeed the guiding principle, then the same could have been achieved with a Parliamentary of strength 182 (BJPs strength in Lok Sabha under Vajpayee), let alone 282. 

The massive mandate the BJP received was a vote for a decisive break from the past. In fact much of the pre-election rhetoric of the BJP centred on how big bang reforms and a radical departure from the past were predicated on the numerical strength of the party in the Lok Sabha. So the question is what is the gain from the BJP having a majority by its own? What exactly is the political capital being saved for?

Courtesy: Business Standard

DO YOU KNOW?

Jaiprakash Power Ventures Ltd (Rs.11.44) recently announced that the Second Unit of 660 MW of the Jaypee Nigrie Super Themal Power Project or JNSTPP has started commercial operation with effect from 00.00 Hours of February 21, 2015.

Jaiprakash Power Ventures Ltd earlier announced on September 03, 2014, regarding the commencement of commercial operations in the First Unit of 660 MW ( 2 x 660 MW - 1320 MW) , Jaypee Nigrie Super Themal Power Project or JNSTPP (A Division of Jaiprakash Power Ventures Limited).  Thus, 1320 MW JNSTPP of the Company stands fully operational. 

Moreover, Buy calls are now coming from Left and Right for the shares of J P Associates Ltd (Rs.27). This will definitely have a positive effect on the share price of the shares of J P Group. 

Karuturi Global Ltd Fixes Book Closure for 19th AGM

Photo: Internet-General.info

09-03-2015: The Register of Members & Share Transfer Books of Karuturi Global Ltd will remain closed from March 13, 2015 to March 20, 2015 (both days inclusive) for the purpose of 19th Annual General Meeting (AGM) of the Company to be held on March 20, 2015.

Meanwhile, there were media report that India's largest rose exporter Karuturi Global Ltd (KGL) has received an approval from the board of directors to offload its 53% stake in Mumbai-based Florista India Pvt Ltd, which operates a chain of floral designing boutiques across India.

Florista India was an unlisted subsidiary of KGL, the world's largest producer of cut roses, and disinvestment was a business strategy which had no material impact on the existing business of the company.

Founded in 2007, Florista India offers roses, orchids, gerberas and exotic flowers for anniversary, birthday, congratulations, get well, love and affection, miss you, and new baby occasions.

Banglore-based Karuturi Global had acquired a 54% equity stake in Florista, which specialises in designing exquisite flower arrangements and decorations made from exotic flowers imported from across the world, for an undisclosed amount in December 2010.

KGL posted a net profit of Rs.10.31 crore in December 2014 quarter, an increase of 31.34%, as against Rs.7.85 crore during the previous quarter ended December 2013. Sales of the company, however, declined 61.3% to Rs.56.98 crore in the quarter from Rs.147.31 crore during the year-ago period.

 Steel imports from China nearly trebled during Apr-Jan: Govt

Photo: Live Mint

New Delhi  March 9, 2015: India's steel imports from China nearly trebled during the April-January period of this fiscal to over 29 lakh tonnes (LT), Parliament was informed today. 

The country had imported 10.88 LT steel comprising 6.46 LT carbon steel and 441.70 LT ally/stainless variety during the entire 2013-14 fiscal. 

"Carbon steel imports during the period (April-January) from China stood at 15.27 LT while alloy/stainless steel imports were at 13.76 LT", Minister of State for Steel and Mines Vishnu Deo Sai said in written reply to the Lok Sabha. 

In 2012-13, imports were higher at 16.88 LT compared to 15.03 LT a year earlier. 

"The global steel industry, including India, in general is going through a difficult phase," the minister said. 

Replying to an another question, he said Steel Authority of India has entered into an "associateship agreement" with State Trading Corporation of India (STC) for supply of one LT steel rails to STC for exporting to its potential customers in Persian Gulf, which may include Iran. 

"Against this agreement, so far no rails have been supplied, as the contract between STC and Indian Railways is not yet effective since Iranian Railways is yet to obtain necessary approvals," Deo said.

Courtesy: Business Standard

WINNING STROKES: THINK DIFFERENT

Rasoya Proteins Ltd hit another buyer freeze at Rs.0.65. The scrip could be moving towards Rs.3, in the coming days. 

Today, Premium Members were asked to take fresh positions in Jindal Saw Ltd (Rs.74.80) at Rs.75-76, for a target of Rs.81. The Jindal Group has won few coal mines in the recently held auctions; also, the government of India's thrust towards infrastructure development, will push up the demand for SAW Pipes in future. 

Genera Agri Crop Ltd hit another buyer freeze at Rs.4.58. Today, it moved up with huge volume not seen in the last few weeks. Today the total traded quantity 53, 000 against the 2-wk average quanity of only 17, 000.  Moreover, the percentage of Deliverable Quantity to Traded Quantity was 100%, indicating that huge delivery based buying is taking place. It is a profit making company and it is expected to double from the recommended price, within a short time.

Karuturi Global Ltd, the world's largest cut flower exporter was recommended to the Premium Groups yesterday at Rs.1.87. The scrip touched Rs.2.09 in the BSE Intra-day before closing at Rs.1.97, up 5.35%. Sai Ramakrishna Karuturi, the founder of Karuturi Global Ltd was also passionate about agriculture and wanted to make it big in the sector. In April 2008, the Ethiopian government offered him more than 300,000 hectares of land at a favourable price to grow food crops. The scrip is expected to touch Rs.5, in the short term--stay invested. 

Western India Shipyard Ltd hit another buyer Freeze today at Rs.4.56. The scrip more than doubled in the last one month, giving superb returns to the risk-taking patient investors. When the scrip was not rising, I had tough time convincing many of them. 

GMR Infrastructure Ltd today closed at Rs.17.35, down 1.98%. Tomorrow is the last date to get the shares on Rights basis at Rs.15, per share, against the CMP of Rs.17.35. The equity shares are being offered on a rights basis to the eligible equity shareholders in the ratio of 3 equity shares for every 14 equity shares held on the record date of March 12. So, if you want Rights Issue shares, then you must enter the counter tomorrow, before the bourses closes down. 
The Indian bourses tanked today by 604.17 points or 2.05%, taking weak cues from the overseas market. Also, the fact Mr.Arun Jaitley, hardly has anything to offer in the recent budget proposals (Finance Bill), except infrastructure push, precipitated the fall. It is to be noted that the Bulls have managed to keep Nifty-closes above 8900 till the last trading session. But today the Nifty broke the psychological level of 8800 and closed at 8,756.75 down 181 points. Meanwhile, one silver lining is that: FIIs were net buyers of Indian equities today of value Rs.838.30 Cr; however on the flip side, the DIIs sold equities worth Rs.35.3 Cr. In such a circumstances, the traders/ investors are suggested to keep away from playing in Nifty Futures but concentrate on the individual counters.