Morning Market News Call India, February 16

 FACTORS TO WATCH

10:00 am: Railway Minister Suresh Prabhu, DIPP Secretary Amitabh Kant, other Government and industry officials at Make in India summit in Mumbai.

11:30 a.m.: SBI Chairman Arundhati Bhattacharya at an event in New Delhi.

5:30 pm: RBI Deputy Governor H.R. Khan to attend an event in Mumbai. 

 INDIA TOP NEWS

India's aim to import GMO-free corn - mission not possible?

As India arranges to import corn for the 1th time in 16 years, at least one stipulation in its global tender has become much tougher to meet – that shipments of the crop are totally free of genetically modified organisms.

Snap deal increases $200 mln, giving it $6.5 bln market value online market Snap deal has increased a $200 million, giving it a survey of about $6.5 billion, as the firm looks to ramp up assets in logistics and infrastructure in the quick rising domestic e commerce division 

India's exports shrink in Jan.; RBI against depression India's exports shrank in Jan. for the 14th straight month on sustained bad demand from Europe, but the central bank said it will not track countries such as China and Japan in pushing down the currency to assist. 

India drug watching program kicks to raise quick enough India's 6-year-old pharmacovigilance program, which gathers and submits supposed poor drug responses to a globe Health Organization record, is key to improving drug safety in a country where drug consumption is high, experts say. 

RBI chief Rajan says not in favor of devaluing exchange rate Reserve Bank of India Governor Raghuram Rajan said on Monday he wasn’t in favor of devaluing exchange rates to increase financial development, signaling India wouldn’t link other countries such as China or Japan in pushing fall their currencies. 

LOCAL MARKETS OUTLOOK

The SGX Nifty Futures was trading at 7,203.00, gain 0.40 pct from its last end.

The Indian rupee would expect open a little lesser against the U.S. dollar, as easing threat aversion and broad downside in the Japanese yen lift the greenback. However, likely gains in domestic stocks on the back of enhanced sentiment would limit sufferers, dealers said 

Indian government bonds would expected edge lesser, as the nation's central bank didn’t declare an open market buy of bonds and went in for the longer-term repurchase options amid bad demand from foreign shareholders at a debt limit auction. The yield on the benchmark 7.59 pct bond maturing in 2026 is expected to trade in a 7.72 pct-7.77 pct level. 

GLOBAL MARKETS

 U.S. markets were ended on Monday, Feb. 15 for President's day. Asian stocks expanded their increases as a mixture of stabilizing Chinese markets, a recover in oil rates and hard U.S. consumption data drove shareholders to appear for deals after previous week's tumult. 

The dollar stood tall against the yen and euro as worldwide threat dislike that tattered the greenback the last week relieved. 

U.S. oil rates hoped back over $30 a barrel as news of a rare private Meeting of top officials from the world's leading oil producers urged Speculation of an eventual contract to begin a deep supply glut. 

Gold tended sheer sufferers, trading well beneath a 1-year high achieved previous Week, as recoil in worldwide shares and the revisit of threat appetite dulled Demand for the safe-haven asset. (Source: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_02162016.pdf)

  

Shares in News: Jain Irrigation, Corporation Bank, Bank of Baroda

Jain Irrigation posts Rs 9.2 cr profit in Q3 

Jain Irrigation Systems noted merged net revenue of Rs 9.21 crore for the quarter closed on Dec. 31, against a failure of Rs 39.68 crore in the year ago time. Total income improved to Rs 1,384.15 crore for the quarter closed Dec. 31, 2015 from Rs 1,297.46 crore for the quarter closed Dec. 31, 2014, the company informed the BSE.

Corporation Bank Q3 loss at Rs 383 crore 

State-run Corporation Bank noted a failure of Rs 383.37 crore for the Q3 closed Dec. 31, 2015, due to important bound in poor loans. The bank had earned net revenue of Rs 147.20 crore in the same quarter previous year. Total income also dropped to Rs 5,158.52 crore during the quarter from Rs 5,209.54 crore in the last fiscal.

Bank of Baroda Q3 loss at Rs 3342cr; provisions surge 225% 

Bank of Baroda (BOI) posted quarterly set of numbers that unbreakable the story that has been the running theme for banks this earnings period: that the asset quality image is far poorer than formerly thought. The bank posted a quarterly net failure of Rs 3342 crore, contrasted to Rs 124 crore quarter on quarter. The loss was driven by a 225% raise in provisions, which increased from Rs 1,891 crore in the last quarter to Rs 6164 crore. A tax write-back of Rs 1,118.37 crore proved to be a big help in limiting the sufferers.

Max Financial Q3 profit before tax at Rs 127 crore
Max Financial Services the 1th company to be listed tracking the lately completed demerger of erstwhile Max India, posted revenue before tax of Rs 127 crore for the Q3 of 2015-16. It has recorded merged operating profits of Rs 2,248 crore during the quarter. Max Life Insurance, the sole operating subsidiary held by the company, sustained its consistent development trajectory in quarter, with operating profits rising 10% to Rs 2,243 crore and earnings before tax rising 92% to Rs 140 crore over the same time previous year, MFS said in a report.

NMDC Q3 profit drops by 59% to Rs 655 crore

State-run iron ore miner NMDC  noted 58.8% fall in standalone net revenue at Rs 655.04 crore for the quarter closed Dec. 31, 2015, due to drop in iron ore rates. The company had noted net revenue of Rs 1,593.01 crore in the year-ago time. Net sales of the company too droped 48.5% to Rs 1,517.19 crore during the quarter contrasted to Rs 2,944.39 crore in the year ago time, NMDC said in a filing to the BSE.

RattanIndia Power Q3 loss narrows to Rs 29.51 crore
RattanIndia Power noted tapering of merged loss to Rs 29.51 crore for the quarter closed Dec. 31, 2015. "The group has posted a net failure after taxes & minority interest of Rs 29.51 crore for the quarter closed Dec. 31, 2015 as compared to net failure of Rs 141.19 crore for the quarter closed Dec. 31, 2014," RattanIndia Power said in a BSE filing.

MRPL back in black with Rs 298 crore profit in Dec quarter 

Mangalore Refinery and Petrochemicals Ltd (MRPL) returned to black with net revenue of Rs 298 crore in the Dec. quarter on the back of healthy refining margins. MRPL, a subsidiary of Oil and Natural Gas Corp (ONGC), had a net failure of Rs 1,894 crore in (Oct-Dec) 2014, the company said in a report. The firm earned USD 8.4 on turning each barrel of crude oil into fuel in Q3 of present fiscal as compared to USD 6.74 a barrel gross refining margin in the year-ago time.

PI Industries Q3 net profit up 16% at Rs 72.53 crore 

Agro-chemicals firm PI Industries noted 16% increase in its net revenue at Rs 72.53 crore for the quarter closed Dec. 31, on account of lesser tax expenses and increase in income. The company had noted net revenue of Rs 62.22 crore in the year-ago time. Total income from operations increased to Rs 510.98 crore during the quarter-under review, from Rs 504.92 crore in the same quarter of the last fiscal, the company said in a regulatory filing.

Nandan Denim posts 24% rise in Q3 net; eyes top spot in Asia 

Denim fabric maker Nandan Denim noted a 23.8% increase in net revenue for the Q3 at Rs 15.65 crore. It had listed net revenue of Rs 12.63 crore in the corresponding time of last fiscal. Net sales for the (Oct-Dec) time stood at Rs 287.37 crore, upper by 3.5% from Rs 277.60 crore in the Q3 of FY15, said the company which has unveiled a plan to become the leading denim manufacturer in Asia.

SKF India Q4 net profit rises 42% at Rs 58 crore 

Bearings maker SKF India noted a 42.22% raise in its net revenue at Rs 58.14 crore for the Q4 closed Dec. 31. The company had posted net revenue of Rs 40.88 crore during the year-ago time. Net sales of the company fallen to Rs 601.87 crore during the quarter, as compared to Rs 605.9 crore during the same time of the last fiscal, SKF India Ltd said in a regulatory filing.(Posted by swastika investmart stock trading companies)

The Indian rupee damaged further on Friday

The Indian rupee damaged further on Friday, 12 Feb. 2016 on continued demand for the American currency from importers and banks. The dollar was firm against some worldwide currencies which weighed on the rupee, but an upper opening of the local share market topped the sufferers. The local currency opened at Rs 68.37 against the dollar and fallen to a low of 68.44 so far during the day. In the spot currency market, the Indian unit was end seen trading at 68.40. Yesterday, the domestic currency dropped by 45 paisa to end at an over 29-month low of 68.30 a dollar on new demand for the US currency from banks and importers in view of sharp drop in shares amid foreign capital outflows.

Local benchmark index bordered upper in early trade on bargain hunting after a sharp drop in the last session. At 9:20 IST, the gauge index, the S&P BSE Sensex, was gain 84.45 points or 0.37 Per cent at 23,036.28. The increases for the Sensex were upper in percentage terms than those for the 50-script Nifty 50 index. The Nifty was gain 21.85 points or 0.31% at 6,998.20.

In the abroad market, Asian stocks chop today, 12 Feb. 2016, as investors sustained to plunk riskier assets. Japan's Nikkei fallen 5.3 Per cent to its minimum range in more than 15 months. Mainland Chinese share markets have been ended all week for the Lunar New Year holiday. The Shanghai and Shenzhen markets would reopen Monday, 15 Feb. 2016. In the US market, the Dow industrials and S&P 500 rang up their 5th losing day in a row yesterday, 11 Feb. 2016, declining among a worldwide tumult led by dipping oil rates and sufferers in monetary shares.

Overnight, the dollar expanded sufferers against the other major currencies on Thursday, as Federal Reserve Chair Janet Yellen reaffirmed remarks made on Wednesday, sparking doubt over the timing of future price treks. Yellen repeated to the Senate Banking Committee on Thursday that the U.S. wealth is improving while acknowledging that a damaged worldwide wealth and fall in U.S. share markets is tapering monetary situations sooner than the Fed wants.

In testimony before a congressional committee on Wednesday, Yellen said there are good causes to think the U.S. would continue on a path of modest expansion that would permit the Fed to pursue slow adjustments to financial policy. The dollar had gently strengthened after the U.S. Department of Labor said the number of individuals filing for initial unemployed profits in the week closing Feb. 6 reduced by 16,000 to 269,000 from the last week's total of 285,000.

What you need to recognize, US interest rate climb

The US Federal Reserve increased interest duties by 0.25 Per cent points for the 1th time since 2006. The United States cut interest duties to close to zero due to the monetary crisis in 2008. Since then, people and businesses could borrow cheap to spend and invest. Presently, with the climb in the interest rates, the US seeks at heartening speculation and creating job opportunities.  

The Federal Open Market Committee and Federal Reserve Chair Janet Yellen said on Wednesday that household spending and business fixed speculation have been growing at solid duties in recent months.

Markets: Share markets in India, Asia and Europe held firm on Thursday on the back of the expected US interest price trek. Worldwide shareholders poured money into rising markets international since 2008 as US interest duties were close to zero percent. With the US reversing the drift, people may park their money in fixed interest bonds. They aren’t involved in taking threats in unsure worldwide markets. This is frequently referred to as a phase of low risk appetite. The doubt in worldwide markets will maintain as this poses a big challenge for companies and governments in rising countries. They have been borrowing in an appreciating US dollar.  

Impact on companies: An increase in interest duties of US would raise the cost of borrowing for companies. The US companies do not really need to borrow much to spend as they are cash rich.  This means companies in US might not get affected much. Companies in the U.S. could earn upper returns on stuffed balances. But, any borrowing by Indian or Chinese companies in US dollars will get expensive.

 Impact on India: Only a small part of India’s sovereign debt or government securities are held by foreigners or are denominated in foreign currency. Unlike many other rising markets, India hasn’t witnessed a pullout of foreign money. In fact, since June 2013, India’s foreign exchange reserves in fact increased by $65bn to $353bn as of Nov. 2015. Credit rating agency FITCH considers that India is improved placed than many of its peers.  

On rupee and Indian markets: India’s favorable financial development view makes India comparatively gorgeous for foreign investors. Most professionals suppose that the rupee is anticipated to stay steady and Indian stocks will maintain to stay more gorgeous than other rising markets. Indian software services companies are anticipated to advantage from a continued improvement in the US wealth. Two-thirds of Indian software services exports depend on spending by US corporations. Other Asian economies that export manufactured goods could also spot a improvement.

Top 7 long term investment options

You should always obtain into the habit of saving and investing money in some form or the other. The monetary market offers different asset options for all types of monetary needs. Among diverse options in the money making globe is the long period asset option a monetary plan that raises your money for over a time of 6 or more years. 

Investing in Mutual Fund: Mutual Funds speculations are generally chosen by people who want to spend in equities and bonds with a balance of threat & return. In latest years, investing in share market via Mutual fund has picked huge popularity. Many people are receiving learned and want to taste the Stock market. And for that, mutual funds are the top way to enter. One can spend in mutual fund for longer time by systematic investment plan (SIP) and obtain a much superior return contrasted to other asset products. SIP helps to make a portfolio over a longer time prospect with small asset at regular intervals which lessens the threat of volatility in the market.

Invest Equity or Share buy:

Do you know how to analyze a share or stock before you purchase? If you can do that, then investing in direct shares could be the top option for long period point of outlook. Even though investing in direct share is unsafe, but if one can spend for a long phrase of more than 15 years, upper return is anticipated.

There are two ways in which you can spend in stocks:

• Through 1th market (applying for stocks that are offered to the public)
• Through 2th market (purchasing stocks that are listed on the stock exchanges)

It is suggested that you shouldn’t make frequent trades as you are in the market for the long run. In this way all your funds would go into commission. As an asset option, investing in equity stocks is measured to bring a high range of threat linked with it.

Index Funds

Index funds stay one of the top ways to spend over the long period because they are an inherently healthy and diversified product. An index fund holds a wide range of firms, so your money is never tied to the successes or failures of any one given company. Warren Buffet, the famous shareholder, advises S&P 500 index funds as one of the top long period assets. This puts your money behind proven firms with a history of success. The long period expansion of the share market overall makes these sorts of index funds a very decent bet for long term development.

Bonds

Bonds are an excellent long period speculation because they lean to be much less unpredictable than shares on average. Bonds with a ten year or upper maturity date are also expected to offer a healthier yield than those set to come due previous. If you can afford to set your money aside and watch it rise over the long word, bonds are a fine option for this cause. There are also sure types of bond products which are guaranteed. This not only offers you with a decent long time speculation, but also greatly lessens your threat thing. For those causes, bonds would always be one of the top long period assets you can purchase, and a key component of a diversified long period portfolio.                                

Gold

Gold is favored by several as a long period speculation, partly because it has been used a gauge of wealth for almost as long as humans have been bothering to gauge it. Gold leans to appreciate gradually over time, making it a bad stake for the short-term shareholder, and a wise one for someone in it for the long drag. Although most consultants propose only putting a little segment of your portfolio in gold, it is still one of the top long period speculations.

Fixed Deposits: This is a very easy and the most common form of asset. Bank deposits are frequently measured to be one of the top options for speculations. Although the rules differ for diverse banks, it is a safe option that offers you a significant quantity of money at the time of maturity. Your top stake will be to spend in public division banks for decent returns.

Real Estate Investment: Who does not want to own a part of land? Most people spend their earnings into buying a house and the most significant thing to think when you spend a huge hunk of your savings in the property market is the ‘location’. Research well and test the legal papers to avoid frauds.