28 October 2012

Dissector: Silver in a short-term downtrend :: Business Line


Nava Bharat Ventures (Rs 186.8): BUY :: Business Line


Stock Strategy: Short Pantaloon with trailing stop :: Business Line


Now, lighter burden from home loans :: Business Line


As there are no prepayment charges, borrowers can switch to banks where the EMI is lower.
In response to rate cuts by the RBI, banks have reduced their base rate by 25 basis points (100 basis points = 1 percentage point). This is good news for borrowers. Since floating rate loans such as home loans are linked to the base rate, the EMIs (Equated Monthly Instalments) will decline.

NEW BORROWERS

While this should bring some cheer to the existing borrowers, it is the new borrowers who walk away with the cake. Take the case of State Bank of India. While existing home loan borrowers (less than Rs 30 lakh loan) have only 25 basis points relief, the new borrowers get an additional cut of 25 basis points. This is because, in August, SBI and few other public sector banks cut the spread between home loan rate and base rate only for new home borrowers. Additionally, a portion of the processing charges are also cut now in order to stimulate home loan borrowing. Let us understand how this impacts the EMIs with a simple example.
Say you took a loan for Rs 1 lakh for 5 years from SBI early this year. You would be paying Rs 2,150 as EMI. Now, you will pay Rs 2,137 a month after the 25 basis point cut. Considering a Rs 30 lakh loan, it lowers the outgo by Rs 390 a month. In contrast, a new home borrower gets a 50 basis point cut and his EMI will be still lower at Rs 2,124 a month.

Technicals: Dena bank, Graphite India, Financial Technologies, TVS Motor :: Business Line


Pivotals - Infosys, Tata Steel, SBI, Reliance Industries :: Business Line


Sizzling Stocks - Punjab National Bank (Rs 749) :: Business Line


Stock Strategy: Short Pantaloon with trailing stop :: Business Line


Stock Strategy: Short Pantaloon with trailing stop :: Business Line


Short Takes - L&T maintains order flow momentum :: Business Line


Theme and sector funds require constant monitoring :: Business Line


Theme and sector funds require constant monitoring as well as much care in the timing of entry and exit. Unless you have a decisive view on the sectors, it may be in your interest to avoid them.Prioritise one goal and start saving towards it. When your surplus improves, you can target other goals.
I am 30 and earn Rs 20,000 a month. I plan to invest in mutual funds where I intend to park Rs 2,000-3,000 every month, for the long term as well as for the short term. Where do I invest so that I am able to make Rs 15 lakh in the short term and Rs 1 crore in the long term?

Index outlook: Markets in limbo :: Business Line




When in fear, take profits :: Business Line


Taking profits is the most difficult part of investing, especially when your portfolio return so far is below required return and you expect the market to decline going forward.
Picture this. You create a portfolio with a 10-year investment objective. This portfolio has unrealised gains at the end of five years. You fear that the market may decline going forward. Will you take profits and reduce your equity investments or will you continue to hold your investments with the unrealised gains? The question is important because the decision on whether to take profits or not is not always easy. In this article, we discuss why taking profits is better than fearfully staying in the market even if it means that you have to give up potential gains.

NSE tops stock exchange CEO salary chart; MCX for commexes: Business Line


Chiefs of leading stock exchange NSE and the top commodity bourse MCX have topped the executive salary charts of their businesses, getting a hike of nearly 6 per cent in last fiscal.
Among the stock exchanges, the net pay package of National Stock Exchange (NSE) Managing Director and CEO Ravi Narain rose to Rs 4.1 crore in 2011-12, from Rs 3.85 crore in the previous fiscal, as per the bourse’s latest annual report.
In comparison, the remuneration of BSE’s then chief Madhu Kannan stood at Rs 1.69 crore last fiscal, down from Rs 2.04 crore in 2010-11. Earlier this year, Kannan left the exchange.
NSE’s another rival MCX-SX, which is present only in currency derivatives segment and is gearing up to launch equity and other trading platforms, paid its MD and CEO Joseph Massey a total remuneration of Rs 1.8 crore in 2011-12, unchanged from the previous year.
The gross remuneration of NSE’s Narain stood at Rs 7.88 crore in 2011-12, up from Rs 7.35 crore in the previous year.
NSE’s Joint Managing Director Chitra Ramakrishna’s gross remuneration in 2011-12 stood at Rs 5.64 crore, while her net remuneration was Rs 2.93 crore.
Among the commodity exchanges, MCX’s Lamon Rutten was the top-paid executive in 2011-12 with a pay package of Rs 1.76 crore, up from Rs 1.07 crore in the previous fiscal. Rutten recently resigned as MD and CEO of the exchange, but remains on its board.
MCX chief is followed by NCDEX’s MD & CEO R. Ramaseshan with remuneration of Rs 1.55 crore in 2011-12, up from Rs 1.3 crore in the previous fiscal.
Across the stock and commodity exchanges, the pay package of only the BSE chief fell in the last fiscal, while it remained unchanged for MCX—SX (MCX Stock Exchange).
Interestingly, only BSE witnessed a decline in its net profit during 2011-12, while NSE, MCX and NCDEX saw their profits rise during the fiscal. For MCX-SX, the losses narrowed down sharply in 2011—12.
However, the revenues rose for all the three stock exchanges and the two commodity bourses.
NSE’s revenue rose from Rs 1,047 crore to Rs 1,080 crore in 2011-12, BSE’s from Rs 538 crore to Rs 578 crore and MCX-SX’s from Rs 39 crore to Rs 88 crore.
MCX and NCDEX also saw their revenues rise from Rs 447 crore to Rs 629 crore and from Rs 119 crore to Rs 139 crore, respectively.
In terms of profitability, NSE recorded net profit of Rs 705 crore in 2011-12, up from Rs 637 crore in the last fiscal.
BSE’s net profit fell from Rs 232 crore to Rs 205 crore; MCX-SX losses narrowed from Rs 58 crore to nearly Rs 3 crore; MCX’s profit rose from Rs 173 crore to Rs 286 crore, and NCDEX saw its profits rise from Rs 31 crore to Rs 35 crore.