Bottom fishing in MFs

In the recent market turmoil MFs have not been spared. In absence of FIIs buying, MFs and local institution has tried their bit.

Funds who were top performer for past few years have taken quite a beating. Most of them are some where close to 15-20%.

Here is the list of few funds for your shopping list. If you missed the train earlier here is the chance to catch it from long term perspective.

MF NAVs	52-wk	Current	% Change
Rel NRI Eq	40.1	33.8	-15.7107
Kotak Opp	56.3	48.09	-14.5826
DSP ML Tiger	62.4	52.38	-16.0577
Rel Growth	491	401.79	-18.169
ING Dom Opp	44.9	38.24	-14.833
UTI Infra	50.7	42.8	-15.5819
Sundaram Mid	155.4	125.38	-19.3179
Magnum Contra	64	53.63	-16.2031
Magnum Global	70.4	57.52	-18.2955
JM Basic	40.8	34.08	-16.4706
JM Emerging	20.7	16.93	-18.2126
Rel Diver	87.7	74.84	-14.6636

Heard on the Street

Fed Rate Cut Happend on Tuesday Night: Good For Market

RBI Rate Cut Expected on Next 10 Days: Good For Market

Next Fed Rate Cut Expected on Next 10 Days: Good For Market



I am BULLISH!
I am BULLISH!
I am BULLISH!!!
I am BULLISH!!!!!!
I am BULLISH!!!!!!!!!!!!



But Still a word of Caution Came from Some Informed Circles still Believe that the Market can test the 15k level in next 15 days....

A good option to Hedge your Portfolio to any Risk of a Market Crashis to BUY a Put Option of some Highly volatile stock such as ISPAT, JP Hydro, Nagarjuna Fertilizer, RNRL or ADLABS.

BHEL and L&T news snippet

Just In - BHEL bags order of Rs 2500 cr for Tamil Nadu power plant.
Equipment major Bharat Heavy Electricals Ltd (BHEL) on Tuesday said it has bagged a Rs 866-crore order from Reliance Industries for setting up a 345-MW captive power plant in Maharashtra.
This is the first commercial order on BHEL for an ‘advanced-class Frame 9FA’ gas turbine and will open up a new line of business for the company.

BHEL is currently quoting at 2148

L&T has bagged order worth Rs 1,057 crore in Middle East.
L&T may form a JV with US arms major Lockheed Martin to develop Mark 41 Vertical Launching Systems in India.
L&T gets Bhel-like privileges, may power super-critical drive.Private sector engineering major L&T is being officially promoted as the Bhel-II


L&T is currently quoting at 3751

Keep Calm

TRANQUILITY

This picture is exact opposite of what is happening in financial markets recently.

Are you still feeling jitters?? I think we should stay calm and do not panic. If you are in market for a long term then what happened currently is mostly notional loss from notional profits. Panic can make you take decisions which you might not otherwise. If you are staring at your losses then don't worry everyone else has lost too....

You are not alone and misery likes company.....

If you were trading on margins or were in derivatives trade. I must say beware and hold your hands for sometime till the market rationalize because as we have the famous saying....

"Markets can remain irrational longer than you can remain solvent"

Yes I didn't post anything for past 2 days and that was purposeful. I don't think anyone was interested in hearing any gyan :-) and even I was confused what to write :D

The stocks which everyone was recommending when indexes were at 21000( and I am talking about pure fundamental stocks and not the momentum plays...) still remains a good buy.

Yes there will be some moderation in gains but there will be gains. Fundamentally nothing has changed.
India is growing and it will be reflected in the companies which are working to make that happen.
Various central banks are coming out to help the markets. Fed has already cut rate by 75bps.

I am no one to advice but I think sticking with frontline large caps will be best bet.

And as a closing statement I would like to quote Mr Warren Buffet who says

"Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years"

If you think for few minutes you would certain find few gems in the market which falls into that category.

Mutual Fund Investment Options

In the previous article we discussed about the basics of mutual fund and the types of mutual fund available.


Here we will discuss about the investment options available while buying a particular mutual funds.

Once you have decided on which fund to buy, you may have the option to choose between the following options

• Growth
• Dividend
• Dividend Reinvestment.

Sometimes people ignore the importance of choosing right kind of option and choose arbitrarily any one of them.

So now question comes as to which options is best to invest in...Frankly there is no fixed answer. Because choosing the correct option is based on the individual needs and also on the prevailing tax laws in the country.

Growth Option -Under this option no dividend is declared and your investment change according to the change in NAV. You will be taxed on the gain based on when you sell your units. If you sell your units after 1 year no tax is cut. Otherwise you have to pay short term capital gains tax.

Dividend Option- Under this option fund sometime declare dividend when they have surplus money.
This dividend is totally tax free whether given after 1 year or within 1 year. So returns on your investment within 1 year also becomes totally tax free. When dividend is provided NAV of the fund falls in equivalent amount.
Since there is regular payout, it can be considered as regular profit booking to reduce impact of market fluctuations.

Dividend Reinvestment Option - Tax free dividend declared by the fund is reinvested in the same fund or different fund of same AMC on a particular day set. Timing of the market may not be always favorable.


Current Scenario ..
-->Debt Funds currently attracts Dividend Distribution tax and Equity Funds are exempted currently.
-->Long term capital gain(Sale after 1 year) is fully exempted for growth schemes.
-->Short term capital gain is taxed.
--> Currently in absence of dividend distribution tax on equity-based funds and no long-term capital gains tax, there is absolutely no difference between the Growth option and the Dividend Reinvestment option

Impact of Tax Changes ...
--> If dividend distribution tax is reintroduced then growth option would be better than dividend reinvestment.
--> If Long term capital gain tax is introduced then dividend reinvestment would prove better than growth option.

Hope after reading this you will have better understanding of which option to choose according to your needs and prevailing tax laws.

This article was part II of the previous article posted on mutual fund...Read previous article here....

To know more in details about these options read the following 2 articles which explains in detail about these options.

Growth or Dividend - How to make the right choice?

Dividend Reinvestment v/s Growth – Let your taxes decide

Popular Articles

Driving through the maze of the blog can be sometime tiring and frustrating. I am trying to put few articles which are popular in last few days so that visitors can get the collection of good post on their finger tip.

Here I present in the tabular form of the popular post which I would be updating regularly.

1	Mutual Funds Demystified
2	Indian Entertainment and Media Sector
3	Infrastructure Funds and Sector Overview
4	Y Derivatives??
5	Beyond Equity Trading -- Derivative Basics
6	Medical Tourism in India
7	Sharing what God has given us
8	Money As Debt
9	Bangalore Property
10	Lucky 7
11	Delayed Gratification
12	Kaun banega crorepati!!
13	Indian Story
14	The Art of Converting Notional Gain to Notional Loss

Mutual Funds Demystified...

A mutual fund is a professionally-managed form of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. In a mutual fund, the fund manager, who is also known as the portfolio manager, trades the fund's underlying securities, realizing capital gains or losses, and collects the dividend or interest income.

The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding.
[source: wikipedia]


Mutual Funds come in various hues and colors. They can be catorized on various basis.

Mutual Funds can be categorized by their structure.

• Open Ended
• Closed Ended
• Interval

They can be categorized by their investment objective.

• Equity Scheme
• Debt Schemes
• Growth Scheme
• Balanced Scheme
• Income Scheme
• Money Market Scheme
• Tax-Saving Scheme
• Sectoral(Industry Specific) or Thematic Scheme
• Index Scheme
• and so on to list a few.......

and they can also be categorized into investment options

• Growth
• Bonus
• Dividend
• Dividend Reinvestment

We will discuss each one of them so that it helps you in choosing and picking right fund according to your investment objective.
-----------------------------------------------------------------------------------------------------------
1. By Structure

Open Ended Scheme doesn't have a fixed maturity and are available for sale and repurchase on any business day. These schemes are highly liquid and have become very popular.

Closed Ended Schemes comes with a fixed maturity period and are launched with an Initial Pulbic Offer(or New Fund Offer), Investor can buy and sell once they are listed.
Closed-ended schemes are usually more illiquid as compared to open-ended schemes and hence trade at a discount to the NAV. This discount tends towards the NAV closer to the maturity date of the scheme.

Interval Schemes are combination of open and closed schemes, they can be traded or might be open for sale or repurchase.
---------------------------------------------------------------------------------------------------------
So now we can discuss the schemes with their
2. Investment objectives

Equity Schemes are also known as growth schemes and aims to provide capital appreciation over a period of time. These schemes invest majority of their funds in Equity and small portion in debt or money market instruments. These schemes are not for investor seeking regular income.
They are ideal for investors who have a long-term investment horizon.


Balanced Schemes are for the investor seeking both income and moderate growth. They invest both in shares and fixed income securities. They regularly distribute part of their income and capital gains. They are safe from huge market fluctuation because part money is invested in fixed income, so when market rise they don't rise as much, but when market fall it protects you from steep fall.

Tax Saving Schemes also known ELSS ( Equity Linked Saving Schemes) comes with a lock in period of 3 years where units purchased cannot be assigned / transferred/ pledged / redeemed / switched. These schemes are promoted to encourage individuals to save and invest in equities. They offer tax rebates and are good for investor seeking tax exemption under section 88.


Sectoral or thematic funds invest in a particular sector as defined in their investment objective. They tend to outperform if the sector is showing relative growth than the overall market. But these products are also risky because they are not diversified and weightage is given on a particular sector or industry. Recently Infrastructure, power and real estate funds have become very popular.

Index Schemes are schemes which aims to provide the returns equivalent of a particular index of an exchange. Some investors are interested in getting returns equivalent of the market and not of an particular sectors.
Index schemes are some times unmanaged schemes as they don't churn their portfolio and just try to perform equivalent to the index.

Money Market Schemes are for investors who wants to park their surplus money for a short period of time. These schemes provide moderate income with safety of invested capital. These schemes invest in gilts, inter bank call money, deposit certificate, commercial papers etc...
----------------------------------------------------------------------------------------------------------------

Next we need to discuss the schemes based on investment options. This can be a bit interesting topic because investor normally spend lot of time selecting a particular fund house and then a particular scheme in it, but once they have decided on the fund, they tend to ignore the investment option or sometime it is totally arbitrary or on the whims of the agent.

So I will take up the discussion on the mutual fund investment option in the part II of this article which will be published soon.

Double Edged Sword

The current turmoil in the dalal street is attributed to various factors acting in the stock market.

• Global slowdown theory.
• FII pulling out the money.
• Liquidity crunch due to huge IPOs and oversubscription on top of it.
• Valuations over stretched, with long bull market.

Historically good month for the market "January" has not been so good this time.

Currently on Retail participants are allowed to short sell. The market regulator SEBI( The Securities and Exchange Board of India) had banned short selling by institutional investors in 2001 following a stock scam. Till now, only retail investors are allowed to sell short, which means selling securities that the seller does not hold at the time of trade.

Earlier RBI has allowed foreign institutional investor to short sell and now SEBI will allow all categories of investors be it FII, Local Institutional Investors, Mutual Funds,Retail to short sell.
Short sell allows price discovery of a stock. Though this is a positive move and will add to the liquidity and depth of the market, it is yet to be seen whether it will tame the irrational rise/fall in the market.

Investors should be ready for this double edged sword, one the existing global and local scenarios and another the short selling which will unravel itself from 1st of February.

Punj Lloyd News

Pipavav Shipyard has filed DHRP with Sebi. Planning to raise 200 million dollars.

Punj Lloyd has 25% stake in Pipavav shipyard. Punj LLoyd stake valued at $450 million.

Punj LLoyd is up 2% after this news.

Punj Lloyd is our favorite stock and you can see various articles posted about it on our blog.

http://beyond-basics.blogspot.com/2007/11/stock-pic-from-engineering-infra-space.html

http://beyond-basics.blogspot.com/2007/12/punj-lloyd-research-report.html

Reliance Power IPO Subscription

Reliance Power IPO Subscribed 9 times in Retail Category by EOD 17 Jan.

Indian Entertainment and Media Sector

Entertainment and Media Sector Overview

Entertainment and Media is going through a very exicting times. With challenges it is providing huge growth oppurtunities.

New technologies are evolving and convergence is the new buzz word.

This sectory comprises of various stake holders including Films, Television, Print,radio, music,mobile,Internet,studios,gaming,
animation,advertising,IPTV, DTH,

Mobile TV,content provider(Value added service, mobile money transfer),
production and distribution, multiplexes etc,etc.....




Indian film community has recieved industry status. Estimated at 4 billion dollar by 2011.







The whole sector is growing around an average of about 20% annually with Internet advertising showing highest growth of 40%.

Increased FDI limit is also providing boost to the industry.

Convergence of various entertainment platform will require more collaboration between various stake holders. Existing players are trying to gain foothold in whole value chain.

Eg : - ADAG :- Already in film production,distribution, multiplexes, radio, internet gaming etc...

Network 18 group :- stakes in various news channel, various websites and web content provider, internet advertising, JV with jagran prakashan for print media, Yellow Pages business etc.

With so much interest and huge investment flowing in this sector will be growing more than the Indian GDP.


Some Interesting Read :-
Industry Overview

Entertainment & media sector to grow 137% by 2010 : FICCI in news

Media and Entertainment


Previous Posts on Sectoral Overview :-

Infrastructure Funds and Sector Overview


Medical Tourism in India


Seamless Pipes Global Industry Scenario

JP Hydro Out of F&O Curb

Due to unwinding of some Open Interest in JP Hydro, FnO ban have been lifted from the Underlying.

Good News for HFCL : merger with Datacom

DataCom which has got spectrum might be merged with HFCL Infotel.

After long time HFCL was not on lower circuit. It might start its upward journey.


Check this news

Stock News

Indian Stock Market News

BHEL :- It is getting hammered severely and has gone below 2300. It is becoming more attractive on every fall. Fundamentally very good long term play.
After sigining MOU with TN govt for power projects ,Bhel has begun negotiations to set up joint ventures with state government institutions in Maharashtra, Orissa and Uttar Pradesh, which will not only generate steady orders for the firm but potentially block out emerging rivals.

Bhel keep receiving flak for delays in power projects, but it has plans for new plants which will eventually improve the capacity.

BHEL is eyeing thaw in its relationship with NTPC. They have entered into joint venture for producing capital goods and NTPC may give nod to buy super critical boilers from BHEL instead of competitive bids.

RIL :- Reliance Industries may post more than 1 billion dollars of profit with quarter. May hive of E&P division and then Reliance Retail.

GMR , Reliance Energy and total 23 bidders have bid for amritsar airport modernization project.

ADAG :- After acquiring Adlabs, 10% stake in INOX is heavily bullish on Media and Entertainment space.Reliance Entertainment has acquired 250 cinema houses in the US. The company has plans to make 25-30 films all of which will go into production this year. Zapak.com is also ADAG group company.

Thought of the Day

The safe way to double your money is to fold it over once and put it in your pocket.

Stocks under F&O Curb

Following scrips are under ban because they have crossed 95% market wide position. FnO Curb (banned) Data as of 17th Jan 2008

Sr.No.	Symbol
1	ADLABSFILM
2	BINDALAGRO
3	ESSAROIL
4	GMRINFRA
5	IFCI
6	ISPATIND
7	IVRPRIME
8	JPHYDRO
9	ORCHIDCHEM
10	PARSVNATH
11	RAJESHEXPO
12	RPL

Source NSE India.

How to make Smart use of Loans for Investing

Here is an article from Anand who regularly invest by taking loans..

His article was also published in Rediff and was top emailed article.

To provide you with different ways of investing here is the link to the article.

How to make Smart use of Loans for Investing


Feel free to appreciate, suggest, or even find a catch in the strategy if you can.

He will be happy to receive your comments.

Infrastructure Funds and Sector Overview

Equity markets are on high for past few years and this has woken up the mutual fund industry which was in lull.
Because of stunning stock market performance, returns on lackluster mutual funds is also glittering.
This has prompted various AMC (Asset Management company) to mop up new money through various New Fund Offers.
Sectorial Funds can outperform the market if the particular sector is of current fancy.
Same is the case with Infrastructure.


Infrastructure in general has tremendous scope for growth as our country needs huge developments in that area.
Fund houses are trying to cash in on this boom.

Following list shows various sectorial/thematic infrastructure fund from various fund houses.

Fund
AIG Infrastructure & Economic Reform Fund
Birla Infrastructure Fund
Canara Robeco Infrastructure
DBS Chola Infrastructure Fund
Escorts Infrastructure Fund
HDFC Infrastructure Fund
ICICI Prudential Infrastructure Fund
Kotak Indo World Infrastructure Fund
Lotus India Infrastructure Fund
Principal Infrastructure & Services Industries Fund
Sahara Infrastructure Fund - Fixed Pricing
SBI Magnum Infrastructure Fund - Series 1
Tata Indo-Global Infrastructure Fund
UTI Infrastructure Advantage Fund
UTI Infrastructure Fund

Investors has lot of options to choose from. He/She needs to be prudent in making choosing the right fund of his choice.
Lot of money is coming to this sector and fundamentally this is good investment.
It can give sustained growth for few years to come.

As we have discussed about the rewards from this sector, we also need to address the risk.

Risks
High growth may not be sustainable and may slowdown.
Competition is increasing because of lot of interest.
Many Indian companies are in fray with multinational joining too in the race.
Margins are under pressure because of fight to bag the project under their banner.
This poses execution risks. Bidding lowest [sometime unreasonable low] poses high implementation risk.

Stocks
GMR Infra
Punj LLoyd
JP Associate
Bhel
L&T
RIL
Few Power Generation and Utility companies.


You can check the order book, execution capability and funding ability of the company before zeroing or finalizing any particular stock.

Hope now after reading this post you will be more informed about investing/diversifying into infrastructure stocks/funds

New F&O Products by Sebi

Sebi has launched new long term F&O products. Options would be available both on Nifty and sensex for 3 years period.

Existing 3 months options will continue and 3 new options for bi -annual period will also be available considering June/December cycle.

Sebi said that the risk containment and other measures applicable for existing exchange traded equity index option contracts shall be extended suitably to long-term option contracts on index.

JP Associates News

JP Associates to get LoI tomorrow for Ganga Expressway project.
Emerges lowest bidder for all 4 passages in Project.
Ganga Expressway project worth over Rs.30,000cr.

So we can Expect a Huge Run-up in the Stock.

New Polls

The previous poll gave unanimous thumbs up to Reliance Power IPO.

The new poll is going on asking how you participate in the stock market....

Please go ahead and submit your vote....

Thought for the day

January!! This is one of the peculiarly dangerous months to speculate in stocks. Other dangerous months are July, October, September, April, November, May, March, June, December, August and February.

Y Derivatives??

Previous article : Derivative basics

Derivative products initially emerged as hedging devices against fluctuations in commodity prices.

But we will talk about use of Derivatives in Equity Market….

Use of Derivatives

Hedging
Making an investment to reduce the risk of adverse price movements on your Portfolio.
A perfect hedge reduces your risk to nothing.
--Is done by the People who are not confident enough on the choice of there investment.

Speculation
The process of selecting investments with higher risk in order to profit from an anticipated price movement.
They call it a form of Gambling.
--The way for making or losing a lot of money

Arbitrage
The simultaneous purchase and sale of a Stock/Security/Contract in order to profit from a difference in the price. This usually takes place on different exchanges or marketplaces.
--I am still not able to find a real time direction to profit from this.

Out of the Above three I mostly indulge in Speculative trading and very rarely in Hedging.
And Speculation to me is Intuition, News, Market whispers and Mahitosh's Tips :D

Previous article : Derivative basics

Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
--Warren Buffet

My article in Rediff

http://in.rediff.com/getahead/2008/jan/11money.htm

ULIP Vs Mutual Fund

If you thought Unit Linked Insurance Policies are similar to Mutual Funds and are alternative investment oppurtunities. You may be wrong.

Mutual Fund : - Pure investment.

ULIP :- Investment + Insurance.

Investors in ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis.

ULIPs are good only for people ready to invest for a longer period of time.

Normally mutual funds have 2.5% entry load, but fund charges are huge in case of ULIPs in initial years.

Eg :- LIC Money PLus takes 25-26% as expenses in the first year. This percentage starts reducing as years passes.

Note also that ULIPs generally remove your units as their Annual management charge and monthly charges. Mutual funds account for those in the NAV itself. Therefore, for the same dates, your real return on the ULIP would be lower than the figures mentioned, but on the Mutual funds would be the same

Personally I feel that if someone needs both insurance and investment.

Then he/she should take the combination of Term Insurance(pure insurance) + Mutual Funds instead of going through ULIP route.

Term insurance are quite cheap compared to other insurance in terms of benefit amount.
The money saved on premium can be invested in high growth mutual fund.

Similar post : FMP Vs FD

Beyond Equity Trading -- Derivative Basics

Before you decide not to invest in Derivatives, you should understand them

From today I would like to share my experiences with derivatives and in the same time explain few basic principles. This tutorial will be in phases n I will go slowly and post small articles so that everyone can digest it.

What is a Derivative ?????
Investopedia Definition:
A derivative security can be defined as a security whose value depends on the values of other underlying variables.

Futures & Options are the most common types of derivatives.

A Futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price.

An Option is a contract, which gives the buyer the right, but not the obligation to buy or sell shares of the underlying security at a specific price on or before a specific date.

The primary Difference between options and futures is that options give the holder the right to buy or sell the underlying asset at expiration, while the holder of a futures contract is obligated to fulfill the terms of his/her contract.

Just try to look at the picture and get the basic understanding. Details will be available in future posts.

Click on the image to see larger picture.

Disclaimer:
Derivatives involve risks and are not suitable for everyone. Derivatives trading can be speculative in nature and carry substantial risk of loss. Only invest with risk capital.

Follow up article to Y Derivatives?

Bad News for HFCL

Tata,Idea,Spice Tele receive LoIs from DoT

Unitech,Swan,S.Tel get LoIs from DoT

Unitech, Datacom, Shippingstop get LoIs

LoIs granted for pan India operations

No LoIs for HFCL,Allianze Infratech, Cheetah & Bycell

HFCL News

There are market rumours that HFCL might not get the spectrum it is expecting.

People holding this stock , can take their own decision to exit the stock if they want.

ICICI Bank

ICICI BANK

I was soon going to post a recommendation on my blog about this favorite stock of mine....

Like Punj lloyd is future L&T then I see ICICI bank is future Citibank.

Today ICICI Bank has given good news regarding unlocking value by listing its various subsidiary.

ICICI Bank will list at least four of its subsidiaries and the process could commence within six months, starting with its brokerage arm ICICI Securities.

This holds very good news for ICICI's shareholders

Happy Investing..

Stocks with huge dependency on US

This is the list of companies which had exposure to US, any slowdown in US will affect the prices.

Rank Company RIC US Rev % of Sales

IT Services
1 Patni PTNI.BO 80%
2 Mphasis MBFL.BO 70%
3 Hexaware HEXT.BO 70%
4 Satyam SATY.BO 65%
5 MindTree MINT.BO 65%
6 Infosys INFY.BO 63%
7 Wipro WIPR.BO 60%
8 KPIT KPIT.BO 60%
9 TCS TCS.BO 26, 56%
10 HCL Tech HCLT.BO 56%

Non-IT Services
1 Arvind Mills ARMI.BO 35%
2 United Phosphorus UNPO.BO 29%
3 Sun Pharma SUN.BO 26%
4 Dishman DISH.BO 25%
5 Ranbaxy RANB.BO 25%
6 Glenmark Pharma 24%
7 Suzlon SUZL.BO 14,816 22%
8 Alok Industries 22%
9 Tata Tea TTTE.BO 20%
10 Shasun Chemical 20%

via mail from Deepak Garg

Housing Development & Infrastructure (HDIL)

Recommendation from my friend Deepak Garg.

Housing Development & Infrastructure (HDIL)

CMP Rs1,141

1 year Target Rs. 2000

HDILis a real estate development company with significant operations in Mumbai Metropolitan Region. Its business focuses on Real Estate Development, including construction and development of residential, commercial & retail projects, slum rehabilitation and development, land development including development of infrastructure.

It is a part of Wadhawan group which has been involved in real estate development in the Mumbai Metropolitan Region for almost three decades. Its residential project consists of apartments, towers, large multi-purpose townships which are sold to individual customers. It haspresence across all key segments – residential,commercial, retail, SEZs and particularly SRS

It is seeking to develop projects in other locations including Kochi & Hyderabad. Apart from residential projects, it is also considering expanding into hotel projects, special economic zone developments, mega structures, complexes which are large scale mixed use retail, commercial and residential development.

It has a significant upside potential from GVK Slum Rehabilitation Scheme (SRS) and upcoming special

economic zones (SEZs). HDIL has development pipeline of 120mn sqft (excluding GVK SRS and SEZs). It is also developing 276 acres of slum land adjacent to Mumbai airport.

HDIL’s presence in the Mumbai property marketand expertise in SRS will help it capitalise on the strong demand in the region, which has huge land shortage.

This makes it lucrative as a long term stock.

Suggestions

Regular readers,

I have added a new and a very useful feature in this blog. Now you can see your stock watch list, news related to it etc in this blog without going anywhere else.

This feature is available at the end of the blog or click Stock WatchList in New Stuff [Top Left]

I would like to hear from you. Please post your comments as to what you like in this blog, what kind of articles you would like to see regulars and general feedback.

Thanks.

Medical Tourism in India

Medical Tourism in India, also known as Health Tourism India, is a growing concept whereby people from all over the world visit India for their medication accompanied with a short holiday. The health care sector in India has witnessed an enormous growth in infrastructure in the private and voluntary sector. The private sector, which was very modest in the early stages, has now become a flourishing industry equipped with the most modern. state-of-the-art technology at its disposal.


As Indian corporate hospitals are on par, if not better than the best hospitals in Thailand, Singapore, etc there is scope for improvement, and the country may become a preferred medical destination. In addition to the increasingly top class medical care, a big draw for foreign patients is also the very minimal or hardly any waitlist as is common in European or American hospitals. In fact, priority treatment is provided today in Indian hospitals.

The Apollo Group, Escorts Hospitals in New Delhi and Jaslok Hospitals in Mumbai are to name a few which are established names even abroad. A list of corporate hospitals such as Global Hospitals, CARE and Dr L.V. Prasad Eye Hospitals in Hyderabad, The Hindujas and NM Excellence in Mumbai, also have built capabilities and are handling a steadily increasing flow of foreign patients. India has much more expertise than say Thailand or Malaysia. The infrastructure in some of India's hospitals is also very good. What is more significant is that the costs are much less, almost one-third of those in other Asian countries.


Key highlights:-

• Healthcare industry is the world's largest industry with total revenues of approx US$ 2.8 Trillion (2005).
• With global revenues of approximately US$ 20 Billion (2005), the medical tourism industry is one of the world's largest industry.
• India's cost effective treatment makes it an important player in this industry.
• India's high population makes it an important player in the Healthcare Industry. According to the Insurance Regulatory and Development Authority, the Indian healthcare industry has the potential to show the same exponential growth that the software industry showed in the past decade.
• In India, 80% of the healthcare expenditure is borne by the patients and that borne by the state is 12%. The expenditure covered by insurance claims is 3%. As a result, the price sensitivity is quite high and the high-level healthcare facilities are not in the reach of patients.
• Growing Medical tourism in India will be one of the major sources for foreign exchange.
• With increasing number of non-insured population in western countries and increasing healthcare expenditure to GDP resulting in people opting for treatment choices outside their country.

Hard Rock Cafe Now in Bangalore

Prestigious Hard Rock cafe is finally now in bangalore....

http://www.hardrock.com/locations/cafes3/menu.aspx?LocationID=514&MIBenumID=3


Though its without the live band...thanks to local police.... Still worth visiting.

Good Telecom Bet : JM Telecom Sector Fund

Are you confused whether to buy Reliance Comm or Bharti Airtel.
Do you want to be part of telecom growth story.

Here is a mutual fund which can help you do the same with not putting all eggs in one basket.

I came across with Mutual Fund few days back which I found interesting.

It has both bharti and reliance Comm as 30% each in its portfolio.

Other telecom and telecom related IT stocks are

JM Telecom Sector Fund

Company Percentage

Bharti Airtel 33.9

RelianceCommu.Ltd 29.61

Tulip IT Services Lt 10.29

Tanla Solutions 8.64

Geodesic Infor.Syst. 6.18

Tech Mahindra Ltd. 5.52

MTNL 3.98

Sasken Comm.Tech. 2.14

All stocks are good in their space and expected to give good returns. Good fund to keep for 2-3 years expecting good returns.

More upside on Reliance Capital

Children’s clothes maker Gini & Jony plans to raise Rs 125 crore possibly through a public offer to fund its expansion plans.

Reliance Capital has 22 per cent which it bought in 2005.

GMR Infra

You all must be wondering why GMR Infra is not moving for past few days or past few weeks rather.

It is in a deep consolidation mode after having been up 6 times in past 1 year.

Good times will still come on the back of fundamentals. Nothing has gone wrong with the company as of now to change your investment decision. Patience is the key and it will pay.

I know its difficult to hold on when you see stocks moving 20% in a day.

Some more recent news for GMR

REL, GMR among six shortlisted for Singapore power firm

GMR Energy Ltd, the Company's 100% Subsidiary Company has acquired 80% stake of a Himtal Hydro Power Co. (P) Ltd.

One important Note : Only negative news which I have been hearing recently is that UP government is trying to open an airport near the existing Dial delhi airport.

If that happens there will be affect in delhi airport revenues.

Why not to worry much.??

Effect of revenue loss wont be more than Rs 20-25 per share. The new airport will take atleast 3-4 years to come up.

It won't be able to take much of traffic from delhi airport because DIAL will be an internation swanky airport with capacity to handle 100 million passenger.

Even if new airport comes up Govt will most probably compensate GMR with projected loss in terms of higher land usage in and around delhi airport which has huge potential upside.

Thats it from my side on GMR front :-)

GMR F&O lot zise reduced

Lot size of GMR has been reduced from 5000 to 1250. this makes it within reach of lot of investors.

Reliance Communications

Reliance Communications Limited is India’s largest integrated communications service provider in the private sector with over 38 million individual, enterprise, and carrier customers.
They operate pan-India across the full spectrum of wireless, wireline, and long distance, voice, data, video and internet communication services. They also have an extensive international presence through the provision of long distance voice, data and internet services and submarine cable network infrastructure globally.

Principal Operating Companies
Reliance Communications Limited is a major operating company and is also the holding company for the other major operating companies in the Group. Reliance Communications provides CDMA-based wireless, wireline, broadband, and long distance services in India and overseas. Its major assets are the CDMA wireless network, transmission networks used in its business, and the contact centres.

FLAG Telecom Group Limited (FLAG) is a subsidiary of Reliance Communications. FLAG provides international connectivity services and infrastructure. Its major assets are the FLAG Atlantic, FLAG North Asia Loop, FLAG Europe Asia and FALCON submarine cable systems. Subject to completion of the acquisition, Yipes will be held through FLAG.

Reliance Telecom Limited (RTL) is a wholly owned subsidiary of Reliance Communications. RTL provides GSM-based wireless services in 8 service areas, and owns the GSM wireless networks in its service areas.

Reliance Communications Infrastructure Limited (RCIL) is a wholly owned subsidiary of Reliance Communications. RCIL provides wireless multimedia (Reliance Mobile World) and internet access (Reliance Netconnect) services to customers of Reliance Communications.

Reliance Telecom Infrastructure Limited (RTIL) owns, operates, and develops telecom infrastructure, primarily consisting of wireless communication sites and towers. It currently owns virtually all of the towers used by Reliance Communications’ CDMA and GSM wireless networks and is developing additional towers to meet the needs of Reliance Communications and other customers. RTIL is currently a subsidiary of Reliance Communications. On July 19, 2007 Reliance Communications announced that it had sold 5% of RTIL to seven international institutional investors for a cash consideration of US$337.5 million.

Tech Reliance will be a brand new company apart from his existing BPO arm Reliance Infostreams.


Tech Reliance would now operate as a part of Reliance Communications and would be later seperated off to function as a seperate entity.
Reliance Anil Dhirubhai Ambani Group (ADAG) companies spends between $400-500 million on IT services for all related ventures and the step could possibly save costs and also step up the consultancy aspect of his new age business.


Simple Investment Rationale
1. Growing telecom industry, pan india GSM and CDMA coverage.
2. Value Unlocking in Tower Business
3. Value unlocking in Internation businesses like FLAG and Yipes.
4. Value unlocking in Tech Reliance
5. Value unlocking in Reliance Infostreams


Long term stable stock a must in every portfolio.

bhel news

CLSA has a price target of Rs 2950 for BHEL, reports NDTV Profit. BHEL is the sole bidder for TNEB's Chennai Project.

Moser Baer Flash!!

Recommended Moser Baer 12% up.

Happy Investing!!

Market whispers for recommended Stocks

Network 18 , TV18 news
The Indian Film Company is a six month old parent company of the one and a half year old subsidiary company Studio 18. The Indian Film Company recently acquired and distributed Jab We Met and Welcome.

GMR Infra is likely to bid for power projects and road projects in Turkey and chances of getting those projects awarded to the company are very likely. The share has potential to touch Rs.300 mark in January 08.

Moser Baer is being accumulated by a leading fund on expectations of good growth from its Photovaltic and entertainment foray. Share is tipped to touch Rs.400 mark in couple of months.

Port of Rotterdam, India's L&T in JV talks for a greenfield port in India

L&T, India's biggest engineering and construction firm, said recently a unit had signed a deal with Sohar Industrial Port Co to make equipment for refineries and fertiliser firms. Indian ports are struggling to keep pace with the country's booming economy, with port officials saying capacity needs to be increased by 130 percent to meet an expected doubling in shipments over the next five years.


Centre had decided to merge Bharat Heavy Plates and Vessels into BHEL.

BHEL, NPC in JV to manufacture nuclear reactors

Two state-run undertakings, Bharat Heavy Electricals Ltd (BHEL) and the Nuclear Power Corporation (NPC), will soon form a 50:50 JV for manufacturing nuclear reactors. The board of directors of both the Companies have given consent for the proposed JV. The JV company will produce reactors of 700 mw and 1,000 mw for nuclear power projects. The initial investment will be worth Rs 500 crore.

Read more....

GMR Infra sets up subsidiary in Mauritius

GMR Infrastructure, which is currently scanning global opportunities in airport and power sectors, has set up a 100% subsidiary based in Mauritius to route its equity investments for its overseas ventures. The setting up of the wholly-owned Mauritius arm, GMR Infrastructure (Mauritius), is a move to put in place a structure that will act as an entry vehicle for its global aspirations. The company has incorporated the Mauritius subsidiary for its overseas operations on the advice of PwC.

Talking to ET, GMR CFO (corporate integration) A Subbarao said, “The Mauritius subsidiary will be the holding company for overseas projects. GMR Infrastructure’s equity investments in overseas projects will be routed through this subsidiary. We are witnessing exciting opportunities overseas. We have already made an entry overseas with our Turkey airport project. We have also set up a full-fledged office in London and put in place a separate team to guide international business. The new subsidiary is part of our international business strategy.”

The company, which shot into the spotlight by bagging airport projects in Delhi, Hyderabad and Turkey, is looking at opportunities in mid-sized airport development projects in Europe besides pursuing interest in global power ventures. To fuel these plans, GMR recently raised $1 billion via the qualified institutional placement process to fund its overseas forays.

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