Absolute Return Partners - June 2012

"Contrary to conventional wisdom, the eurozone crisis has always been a banking crisis. It only morphed into a sovereign crisis because of political incompetence. Given the rather stubborn approach of the German government to its beleaguered eurozone partners, the crisis is rapidly moving towards some sort of crescendo. It is only a question of time before one of the Southern European countries come to realise that they might be better off outside the eurozone, particularly if they are the first mover.

Enjoy the read! "

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How to build a winning portfolio with Rs 2,000 per month -fundsupermart

Don't think this is 'gyaan' on mutual fund investment. Rather it will help you build a future platform for wealth creation.

Read this only if you are a beginner, who thinks mutual fund is a riskier asset class and it takes time to make money. And think that investments made in mutual funds have to be constantly monitored.

The three most common reasons why beginners don't invest into mutual funds are:

1. Lack of time: I will have to regularly monitor my investments and I don't have that much time.

2. Lack of resources: I don't have access to research reports and I don't know which fund to choose.

3. Lack of knowledge: I don't know anything about mutual funds. How can I make money?

If you're a beginner, then chances are all these thoughts have crossed your mind. This article hopefully can clear all your doubts.

Answers to the three questions

1. Lack of time: I will have to regularly monitor my investments and I don't have that much time. If you are a long-term investor then monitoring your portfolio once or twice a year makes sense. One doesn't need to monitor their portfolio on a daily/monthly basis.

 2. Lack of resources: I don't have access to research reports and I don't know which fund to choose. Many advisories have research desk that prepares reports for investors, so that they come to know which funds to buy and which ones to avoid. They do so to help out the investors, so that they don't end up making losses. All you need is Rs 2,000 a month to invest.

3. Lack of knowledge: I don't know how; it's too complicated! There are a lot of companies, financial institutions and web sites that help you learn all about mutual funds, so that you can invest without any stress.

But before we get into the process, let's understand that the portfolio we have built here is a simple one for the beginners: It'll help the beginners to understand the very first step of investing from a portfolio point of view, which to me is a more systematic and consistent way of investing.

For SIPs, the minimum initial investment for most mutual funds is Rs 1,000 per month. However, some funds houses have lowered their monthly amount to Rs 500.

So here are the 3 simple steps.

RBI to infuse Rs 12k crore into market to ease liquidity

The Reserve Bank today announced that it will pump in Rs 12,000 crore in the market on June 12 by buying government securities to ease the liquidity situation.

"Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations (OMOs) by purchasing the following government securities for an aggregate amount of Rs 12,000 crore on June 12, 2012," it said in a statement.

FII DERIVATIVES STATISTICS FOR 08-Jun-2012

FII DERIVATIVES STATISTICS FOR 08-Jun-2012
	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores
INDEX FUTURES	53387	1315.83	59997	1478.72	347616	8638.09	-162.89
INDEX OPTIONS	667743	16470.38	659500	16262.62	1538384	38976.21	207.76
STOCK FUTURES	55670	1370.28	45771	1095.45	925164	22440.19	274.84
STOCK OPTIONS	36115	920.87	36838	941.44	40615	1025.40	-20.56
						Total	299.14

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FII & DII trading activity across NSE and BSE 08-06-2012

Category	Buy	Sell	Net
	Value	Value	Value
FII	1779.5	1577.49	202.01
DII	716.51	797.99	-81.48

 

 

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LKP BYTES : Tecpro Systems : (Buy@Rs.152, Target Rs.225)

The story so far ………..

Tecpro began in a small way by manufacturing screens & crushers for material handling and then progressed towards coal handling systems for power projects. It acquired the ash handling company – Mahindra Ashtech in 2008 and then started manufacturing Balance of Plant equipments to become a Rs15bn enterprise in 2008. Tecpro acquired Ambika Projects in 2011 to enter the water treatment space and then acquired Eversun Energy to enter the EPC space for solar power.

Tecpro today is a Rs25bn company well entrenched into Material Handling, BOP and waste heat recovery. Material Handling forms 65% of its order book and BOP & others accounts for the balance 35%. The power sector accounts for 70% of its order book while the balance 30% comes from core sectors like Cement & Steel.

Nifty won't cross 6,200 unless there are policy changes: Rakesh Jhunjhunwala in ET

Rakesh Jhunjhunwala tells ET Now in an interview that he is bullish on India long term, despite mid-term uncertainties. Excerpts:

ET Now: How would you characterise the current market environment? There are bears everywhere, foreign institutional investors are selling markets down, retail is absent, HNI investors are now investing in gold and real estate. Do you think it is time to buy fear and put money to work?

Rakesh Jhunjhunwala: As I told you, I am a near-term bull. I am of the opinion that markets could touch 5,500 to 5,700 on the Nifty in 3-6 months. Medium term there is a lot of uncertainty. On the longer term, I remain bullish.

NSE, Bulk deals, 08-Jun-2012

Date	Symbol	Security Name	Client Name	Buy / Sell	Quantity Traded	Trade Price / Wght. Avg. Price	Remarks
08-Jun-2012	ARSSINFRA	ARSS Infra Proj. Ltd	IFCI LTD.	SELL	1,17,204	56.39	-
08-Jun-2012	HDIL	Housing Development and I	GENUINE STOCK BROKERS PVT LTD	BUY	46,98,294	70.68	-
08-Jun-2012	HDIL	Housing Development and I	GENUINE STOCK BROKERS PVT LTD	SELL	46,98,294	70.70	-
08-Jun-2012	IVRCLINFRA	IVRCL Limited	ARCADIA SHARE & STOCK BROKERS PRIVATE LIMITED	BUY	14,27,725	45.32	-
08-Jun-2012	IVRCLINFRA	IVRCL Limited	ARCADIA SHARE & STOCK BROKERS PRIVATE LIMITED	SELL	14,30,673	45.33	-
08-Jun-2012	LITL	Lanco Infratech Limited	SUNTECK WEALTHMAX CAPITAL PRIVATE LIMITED	BUY	129,46,935	13.15	-
08-Jun-2012	LITL	Lanco Infratech Limited	SUNTECK WEALTHMAX CAPITAL PRIVATE LIMITED	SELL	125,99,707	13.16	-
08-Jun-2012	PEARLPOLY	Pearl Polymers Ltd	EMPEROR TRAVELS ## TOURS P LTD.	SELL	4,76,634	9.94	-
08-Jun-2012	PEARLPOLY	Pearl Polymers Ltd	GAMA INVESTMENTS PRIVATE LIMITED	SELL	4,25,575	10.00	-
08-Jun-2012	PEARLPOLY	Pearl Polymers Ltd	MADHU SETH	SELL	3,54,462	9.96	-
08-Jun-2012	PEARLPOLY	Pearl Polymers Ltd	PEARL ENGINERING POLYMERS LIMITED	SELL	3,44,181	10.00	-
08-Jun-2012	PEARLPOLY	Pearl Polymers Ltd	SUNEETA SETH	BUY	4,52,712	9.97	-
08-Jun-2012	PEARLPOLY	Pearl Polymers Ltd	THETA INVESTMENT (P) LTD	BUY	4,76,634	9.94	-
08-Jun-2012	PEARLPOLY	Pearl Polymers Ltd	UDIT SETH	BUY	4,25,575	10.00	-
08-Jun-2012	PEARLPOLY	Pearl Polymers Ltd	VARUN SETH	BUY	3,44,181	10.00	-

BSE, Bulk deals, 8/6/2012

Deal Date	Scrip Code	Company	Client Name	Deal Type *	Quantity	Price **
8/6/2012	530027	Aadi Inds	ADVANCE INDIA SHARES AND SECURITIES PRIVATE LIMITED	B	100000	9.40
8/6/2012	530027	Aadi Inds	ANUJ GARG	S	100000	9.40
8/6/2012	521097	Amarjothi Spin	JAICHANDER .	B	607500	48.40
8/6/2012	521097	Amarjothi Spin	AMARJOTHI COLOUR	S	607500	48.40
8/6/2012	512608	Bhandari Hos	GANPATI INFRATECH PRIVATE LIMITED	B	55700	45.55
8/6/2012	512608	Bhandari Hos	RAJEEV NIGAM	S	55275	45.55
8/6/2012	531358	Choice Intl	MANASVI CONSULTANCY PRIVATE LIMITED	B	46450	35.56
8/6/2012	524388	Crazy Infotech	M VANJIAPPAN	B	501404	0.20
8/6/2012	531648	Croitre Inds	SAURABH JAIN	B	36000	113.29
8/6/2012	531270	Dazzel Conf	ASHWANI KHURANA	S	1264295	2.55
8/6/2012	531171	Devika Prot	PARIKH SHILPA MIHIR	B	52000	3.99
8/6/2012	507910	Fiberweb India	SULOCHNADEVIANILKUMARAGARWAL	B	67500	7.33
8/6/2012	507910	Fiberweb India	ASHISH KASHIPRASAD KANODIA	S	67509	7.33
8/6/2012	524754	Gujarat Medi	BRIJESH ASHOKBHAI HALARI	B	22719	49.39
8/6/2012	526598	Gujarat Narm Fly	NEHA BIPIN PATEL	B	35090	41.80
8/6/2012	511682	IFL Promoters	ADVANCE INDIA SHARES AND SECURITIES PRIVATE LIMITED	S	181800	6.15
8/6/2012	514312	Jaihind Syn	TARUNKUMAR GURUCHARAN BRAHMBHATT	B	24000	15.00
8/6/2012	514312	Jaihind Syn	PARESH DHIRAJLAL SHAH	S	24000	15.00
8/6/2012	512129	Jayant Merc	RASHMIKABEN N AMIN	B	100000	3.05
8/6/2012	512129	Jayant Merc	HARESHKUMAR PRABHULAL RAGHWANI	B	130000	3.05
8/6/2012	512129	Jayant Merc	URMIL CHANDRAGUPTA MEHTA	B	200000	3.05
8/6/2012	512129	Jayant Merc	A CHAUHAN CHANDRASINH	B	145000	3.06
8/6/2012	512129	Jayant Merc	LAXMIDEVI GOPIKUMAR SINGHANIA	S	705201	3.05
8/6/2012	531617	Osian Inds	UMESH DAYASANKAR DUBEY	B	40000	144.43
8/6/2012	505525	Parichay Invest	ELESH H SANGHVI (HUF)	B	6000	158.00
8/6/2012	505525	Parichay Invest	JHAVERI SANJEEV BURMAN	B	21429	157.98
8/6/2012	505525	Parichay Invest	VIPUL VIRENDRAKUMAR PATEL	S	14680	158.00
8/6/2012	505525	Parichay Invest	JIGAR RASIKLAL PATEL	S	6200	158.00
8/6/2012	512481	Polytex India	BHUPESH HARISHCHANDRA RATHOD	S	85500	170.28
8/6/2012	590077	Ranklin Sol-$	KAMLESH JOSHI HUF	B	36000	5.75
8/6/2012	590077	Ranklin Sol-$	LAKSHMI NARAYANA TADEPALLI	S	32702	5.61
8/6/2012	533294	Ravi Kumar Dist	CHANDRASHEKHAR NATHALAL TRIVEDI	S	200000	9.40
8/6/2012	531695	SHREYCHEM	ARSENAL FINSTOCK SERVICES PRIVATE LIMITED	S	39636	60.67
8/6/2012	531695	SHREYCHEM	TOGADIYA HARESHBHAI MADHABHAI	S	39825	60.10
8/6/2012	531295	Sunlake Resorts	AVIR SURESH KUMAR SHAH	B	67200	5.72
8/6/2012	531295	Sunlake Resorts	NELESH DEVENDRA VORA	S	67200	5.72
8/6/2012	531499	Sybly Inds-$	PARVEEN KUMAR	S	3500000	0.40
* B - Buy, S - Sell
** = Weighted Average Trade Price / Trade Price

Tulip Telecom Downgrade to UW: No respite  HSBC Research

Tulip Telecom
Downgrade to UW: No respite
 4Q results below estimates, margin decline by 300 bps
 Management suggests margins pressure, we build for c4%
yoy decline in FY13e revenues
 Downgrade to UW from Neutral and cut target to INR70 (from
INR125)

Pharmaceuticals - Earning sensitivity to domestic pricing policy; sector update: Edelweiss PDF link

The pharma pricing policy in India is in the last leg of finalization. Over the past three months, there have been numerous debates over the pricing policy framework for essential medicines. While clarity on the price control mechanism is yet to emerge, constant intervention by the Supreme Court should ensure implementation of the new policy soon. We believe the acceptance of a market-based pricing mechanism would be positive for the industry in the medium-to-long term, despite a one-time revenue/profitability hit for some companies. On the other hand, a cost-based pricing mechanism would be a huge negative. We highlight that current proposed methodology using the weighted average price of top three brands is unlikely to go through. While the exact impact will be known only after finalization of the policy, prima facie, companies with limited India exposure are likely to be least affected by any price-control mechanism. Based on our assumptions on the potential price cuts and its impact on profitability, MNC companies like GSK, Ranbaxy and Pfizer would be most impacted (10-23% of FY14 PBT), while among large Indian players such as Cipla (12% ) and Cadila (8.5%) are most impacted. The impact will be least on players like Sun, Lupin and Dr. Reddy’s (3-5%).

Tips to make a perfect budget ::Business Line

AIA Engineering - Margin woes persist; company update; Hold: Edelweiss PDF link

AIA Engineering (AIAE IN, INR 364, Hold)

In the conference call organized by AIA Engineering (AIA) to discuss Q4FY12 results, management has guided for FY13 volume of ~160k MT-170K MT, with the mining segment touching 80k MT. However, we believe margin pressure will continue due to the company’s aggressive pricing policy to gain foothold in the mining segment. The company reported a top line of INR4.5bn with total volume of 40K MT and average realisation of INR101.6 KG in Q4FY12. Overall, in FY12 the company registered total volume of 142K MT, 13% YoY growth (management guidance 140K MT), with average realization of INR94.8 per KG. Growth was primarily driven by the mining segment. We maintain ‘HOLD’.

Basics of Point and Figure chart ::Business Line

IL&FS Transportation - In pole position; visit note; Buy: Edelweiss PDF link

IL&FS Transportation (ILFT IN, INR 175, Buy)

Our meeting with the senior management of IL&FS Transportation (ITNL) reinforces our bullish view on the company. While the award target of 9,500 km in FY13 is good news for the sector, the company sounded a note of caution regarding availability of DPRs for the same. It expects competitive intensity to moderate driven by difficulties in achieving financial closures. ITNL expects the use of innovative financial structures to enhance returns on projects to pick up in future. It believes project buyouts will be driven by lenders’ pressure since high valuation expectation of existing promoters is still a stumbling block. Maintain ‘BUY’.

Does expense ratio matter?: Business Line

8 June: Stocks in News : Edelweiss

Stocks in News

RIL to invest INR 1000-bn in 5 years to double profit (ET)

Cipla loses patent infringement case in US (ET)

Oz ministers to hold crisis meet over GVK dispute (ET)

Bharti Airtel bags exclusive rights for UEFA Euro 2012 (ET)

USFDA Inspection of H’bad plant in Jul-Sept: Aurobindo (ET)

IDBI to raise INR 40-bn for Infra loans (ET)

SBI cuts rates rates for some deposits by 25 bps (ET)

2G case: Tata Tele may move court against Govt (ET)

Australia’s minemakers ejects NMDC from JV (DNA)

GAIL sets aside $1 bn for shale acquisition (MINT)

Aditya Birla to invest $ 1.3 bn in new plants (MINT)

Tata Steel to set up INR 300-bn unit (MINT)

8 June: Edelweiss Technical Reflection (ETR)

Edelweiss Technical Reflection (ETR)

Following up to the stellar rally, the markets traded firm in yesterday’s session and managed to nearly test the 200 SDMA at 5065. The index opened with a bullish gap tracking the positive trend across Asian peers but faced profit taking in the first half and closed the gap, only to rally in the second half that continued throughout the close of the session. However the day’s trading was restricted to a range of 52 points indicative of the tight tussle between the bulls and the bears. Volumes clocked in at higher levels and the market breadth remained in favor of advances. Volatility dipped further down to 23.64 levels from 24.90 levels as per the India VIX. Momentum remains in favor of an upside but has reached an overbought state on immediate near-term indicators that could result in a retreat in prices down to hourly support of 4975. Nifty is expected to close the week in the green and form a bullish engulfing / outside bar pattern which could drive prices higher in the coming week towards the 5095 resistance area.

For the second day, all sectoral indices closed in the green. The gains were led by Realty (+2.19%), Banking (+2.11%) and Auto (+1.32%) indexes, whereas Healthcare (+0.30%) and IT (+0.36%) indices underperformed. Broader market Mid-cap and Small-cap indices underperformed the frontline index with gains of 0.72% and 0.46% respectively.

Bullish Setups: LT, DLF, IDFC, CNXBANK, REC

Bearish Setups: DRRD, LICHF, INFO, HDFC

Regards,

8 June: Sales Traders Commentary : Edelweiss

Sales Traders Commentary

On Thursday, the Indian equity market continued to surge on rising hope of policy rate cut and positive market sentiments after the PM announced a big push to infrastructure development and positive global cues. Both Sensex and Nifty gained more than 1% each and the latter closed above 5000. Sustained buying was seen in realty, financials, auto, metal and power stocks. While the Sensex closed at 16649, up 195 points, the Nifty jumped 53 points to end the day at 5049.

Major gainers were Sterlite Industries (India) (3.85%), H D F C Bank (3.45%), Maruti Suzuki India (3.14%), D L F (3.11%), I C I C I Bank (2.83%), and Hero Motocorp (2.38%).

Major losers were Wipro (1.88%), Tata Consultancy Services (1.02%), G A I L (India) (1.00%), Hindalco Industries (0.41%), and Cipla (0.13%).

The Realty index jumped 2.19%. Major gainers were Housing Development and Infrastructure (3.46%), D L F (3.11%), D B Realty (2.02%), Oberoi Realty (2%) and Godrej Properties (1.04%).

The Bankex gained 2.11%. Major gainers were H D F C Bank (3.45%), I C I C I Bank (2.83%), Bank of India (1.58%), Federal Bank (0.13%) and Canara Bank (0.01%).

The Metal index was up 1.32%. Major gainers were JSW Steel (3.56%), Jindal Steel & Power (1.91%), Bhushan Steel (1.44%), Coal India (0.98%) and NMDC (0.09%).

The Consumer Durables index was down 0.38%. Major losers were Rajesh Exports (1.52%), Titan Industries (1.21%), Videocon Industries (0.38%), Gitanjali Gems (0.21%) and Whirlpool of India (0.07%).

Major gainers in the mid–cap space were A I A Engineering (1.97%), CORE Education and Technologies (1.71%), Allcargo Logistics (1.53%), Aban Offshore (1.2%) and Alstom Projects India (0.3%).

Major gainers among small caps were A B G Infralogistics (3.11%), Reliance MediaWorks (2.45%), A2Z Maintenance & Engineering Services (1.88%), Aarti Industries (1.74%) and Adhunik Metaliks (0.3%).

Globally, Asian indices ended on a higher note while European indices were trading in the green.