By krsna Khandelwal – A veteran market analyst
Friends,
Limited Partnership Bill would soon be cleared. This is a step in right direction and would open possibilities of partnership between people with common business vision but no personal history of mutual trust. Another important feature is that the stepping in shoes of outgoing partner would be easier and the continuity of business will not break.
RPL share price movement has been such as to give rise to doubt of manipulation. Price went up in a frenzied manner and than came down to under 200/- per share after scaling high of beyond 290/- in a short time. The Reliance management sold off big chunks at an average price of around 230/- per share and enriched the company by over Rs. 3000 crs. There has been enrichment of some at the cost gullible investors. I expect the price to touch still lower levels before the production starts.
Dedicated eastern and western freight corridors would entail investments of over Rs.28000 crs and the plan has been given a green signal by the cabinet. Eastern corridor will take about five years to complete and would begin at Ludhiana and pass through Saharanpur, Khurja and Allahabad in U.P. The western corridor would cover the distance between JNP (Mumbai) and Delhi. On completion, a useful link in fast movement of goods will be established.
ONGC would have to absorb Rs.7448 crs of subsidy burden during first half of current accounting year. The jump in the crude oil prices by about $6.67 per bbl translates in to $1.88 per bbl gain to ONGC (roughly by 28%).
RBI governor says that any disorderly adjustment in global financial markets will result in sharp rise in interest rates. The local banks would face greater threat of defaults in loan portfolios.
FM says that the state owned banks will not be allowed to have lower than 51% holding by the govt. and this poses a problem fore the banks to get adequate funding while the expansion business takes place. This needs to be amended in an era where the competition etc has gone up and the funding requirements of the banks has increased enormously.
Some 2.22 million D-Mat accounts have been frozen in India for want of PAN particulars. I think there is case for defreezing these accounts; however, as an incentive to give the PAN numbers some extra charges may be levied up to the time the PAN particulars are supplied. Further, the transfer of the holding may be allowed in to an account, which has the PAN particulars.
Income Tax dept. want a levy in shape of ‘Capital Transaction Tax’ on property deals based on circle rates to take care of under reporting of the value of transactions. As per an estimate 40%, payment in these transactions is settled through cash payment out side of books. In 2006-07, the number of real estate deals worth over Rs.30 Lacs went up by 40% to 109000 transactions across India.
The attrition rates in IT sector is climbing inspite of measures by the companies to keep it in check.
Today Nifty closed at 5617 after the slide for the second consecutive day. This is after a surge in US markets yesterday and has actually not shown a linkage with the world markets after a long time. The month of December will be seeing the liquidity tighten due to last but one advance tax installment for the accounting year 07-08. It may now be expected that the range bound trading in stocks will have downward bias at least till the end of December.
Hari Om
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