25 February 2013

FII DERIVATIVES STATISTICS FOR 25-Feb-2013

FII DERIVATIVES STATISTICS FOR 25-Feb-2013 
 BUYSELLOPEN INTEREST AT THE END OF THE DAY 
 No. of contractsAmt in CroresNo. of contractsAmt in CroresNo. of contractsAmt in Crores 
INDEX FUTURES1298083819.631445374251.4741325812149.40-431.84
INDEX OPTIONS49576714586.2252526415439.10190932155975.34-852.88
STOCK FUTURES1972645951.941862615660.01101766330636.57291.93
STOCK OPTIONS356081040.58374821094.871225153513.67-54.29
      Total-1047.08


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FII & DII trading activity on NSE, BSE and MCX-SX 25-02-2013

CategoryBuySellNet
ValueValueValue
FII2527.792281.08246.71
DII820.75982.72-161.97

 
 


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Outlook-Bajaj Hindusthan, JB Chemicals, Graphite India, UFLEX, PC Jeweller, Parabolic Drugs :: Business Line :: Business Line




Bringing the shine back to old gold jewellery :: Business Line


Is your old-fashioned gold necklace lying idle in your locker? Here’s a way by which you can earn an interest on it in addition to converting it into gold bars of uniform fineness. Gold-deposit schemes from banks may be a good option to exchange your old-fashioned jewellery for gold bars. This can also save you the annual charges you may have to pay for your bank locker. But if you are keen on retaining your old necklace, this may not suit you.
Currently, State Bank of India (SBI) is the only bank offering gold-deposit schemes. This scheme is offered for three, four or five years. With the new Reserve Bank of India (RBI) guidelines, banks may soon offer deposit schemes for periods ranging from six months to seven years. Also, the minimum deposit may be lowered from the current 500 gm.

HOW IT WORKS

Under a gold-deposit scheme, you deposit your jewellery with the bank for a period. At the end, you can redeem your deposit in the form of gold bars of 0.999 fineness of the same weight as your deposit or cash. You will be entitled to receive a modest interest on the gold deposited.
As gold deposits are accepted only by designated branches, check for the nearest designated branch. For instance, 54 branches of SBI all over the country accept gold under the deposit scheme. As the first step, you will have to deposit the old jewellery in the designated branch. The jewellery will be weighed in your presence and a temporary receipt will be issued indicating its weight. Of course, you will be required to carry address and identify proofs and comply with the requisite procedures.
The jewellery will then be sealed in your presence and sent to the India Government Mint in Mumbai for assaying and melting the gold. In the process, gold will first be isolated from other metals such as copper and silver used in making the jewellery before being melted into gold of uniform fineness.
You will receive a gold-deposit certificate indicating the actual weight of gold within 90 days from the completion of the assaying. Interest on the gold deposit will be calculated in gold. The gold weight (in gm) will first be converted to troy ounce. The morning gold price (AM rate) in the London bullion market and the RBI reference rate on the date of maturity or interest payment will be used to calculate the interest and maturity amount.
For instance, if your net gold weight is 450 gm, the weight in troy ounce will be 14.469 (450 divided by 31.1). If the deposit pays 1 per cent annual interest, you will receive 0.14469 troy ounce of gold as interest. This will now be converted into cash. Assuming gold morning rate in London bullion market of $1600 for a troy ounce and the RBI dollar exchange rate of Rs 54, you will receive Rs 12,501 annually as interest (0.14469 multiplied by 1,600 and 54). The date of completion of assaying or 30 days from the date of deposit of gold, whichever is earlier, will be considered for interest calculation.
On maturity, you will receive gold bars equivalent to the net weight mentioned in the gold-deposit certificate. In case you opt for cash payment, the total weight will be multiplied with London morning gold rate and the RBI reference rate to arrive at the maturity value.
Should you to redeem the deposit before maturity, you may have to forego a portion of your interest. For instance, SBI charges 0.5 per cent penal interest on a three-year deposit in case you wish to withdraw from the scheme after one year. This will be adjusted against the interest receivable.

REDEEMING THE DEPOSIT

The deposit certificate needs to be sent to the nodal branch one month prior to the maturity date. You can opt to redeem the deposit either as gold or cash.
If gold prices rise, you stand to earn capital appreciation on your deposit apart from the interest paid during the term of the deposit.
However, the risk to this deposit, especially if you choose to redeem in cash, is that if gold prices in rupees decline over the tenure of your deposit, your maturity amount will be less than your original deposit

Budget hopes for savers and investors :: Business Line


Savers and investors, pinched by inflation, are widely expected to get sops to put away more in the piggy bank in the upcoming Union Budget. Here are a few measures, culled from a long list that may materialise.
The first tax slab for the salaried, which is completely exempt from tax, was increased from Rs 1.8 lakh to Rs 2 lakh in the last Budget, in line with the recommendations of the Direct Taxes Code Bill. This is expected to be raised further in this Budget.
The Parliamentary Standing Committee has recommended a further increase in the tax exemption limit to Rs 3 lakh. If that seems too steep, it is hoped that the limit will at the least go up to Rs 2.5 lakh. The Finance Minister is likely to help you with investing that extra money he is putting in your hands too.
The Rajiv Gandhi Equity Savings Scheme that was introduced in the last Budget now offers a tax break on Rs 25,000 of investments.
This cap may be raised. The eligibility criteria for investing in this scheme are also expected to be relaxed. There may be some additional tax incentives for investment in corporate bonds too.
Lower tax rates, however, may not extend to the so-called ‘super-rich’ — namely salary earners with pay cheques of over Rs 20 lakh a year. They may face a higher tax burden in 2013-14 with clamour for the Government to increase the tax rate on the highest slab to 40 per cent.
Changes in section 80C
With financial savings in the doldrums, the Budget is widely expected to do its bit by promoting mutual funds, shares and bonds. A slew of benefits are expected under section 80C of the Income-Tax Act, which allows you to deduct up to Rs 1 lakh a year from your taxable income.
First, the deduction limit of Rs 1 lakh may be increased. The insurance industry is expecting a separate exemption for Rs 1 lakh worth of pension and life-insurance products.
Also, it is hoped that the amount received from various pension products and annuity schemes will be made tax exempt for policy holders, similar to the Government’s New Pension Scheme. The Budget is also expected to address the problem of rising healthcare costs by allowing higher deduction on health-insurance premium.
On insurance, in the last Budget, to the chagrin of single-premium ULIP holders, the Finance Minister tweaked rules saying that for claiming deductions, the premium on a life-insurance policy should not exceed 10 per cent (20 per cent earlier) of the policy value.
This year, the cap may be reduced further to 5 per cent aligning it with the Direct Taxes Code Bill. This could effectively mean that the tax sops are available only on pure term-insurance plans which charge low premiums and not on ULIPs.
The insurance industry, however, wants the tax relief on insurance policies to be linked to the term of the policy rather than the sum assured.
For home buyers
The Budget may bring good news to home buyers. First, there is the long-pending request for increasing the limit for home-loan interest deductions which stands at Rs 1.5 lakh a year.
This limit will be reached even if one buys a home worth Rs 16 lakh assuming an interest rate of 12 per cent, availing an 80 per cent loan. Now, the limit is expected to be increased to Rs 3 lakh.
Another key change hoped for is with respect to the investments in capital gains bonds. Currently, those earning long-term capital gains earned on selling assets such as property escape provided they are invested in capital gains bonds.
However, the entire sum is not tax exempt — the maximum limit is Rs 50 lakh. In the upcoming Budget, the Government is expected to remove this cap and divert the funds so raised to fund the infrastructure sector.
Assuming that you continue in your rented accommodation next year too, you may still receive some benefits. With rents increasing by many times, there is a demand for an increase in the amount of rent allowed as a deduction from total income.
Cheaper foreign holidays
Currently, leave travel allowance (LTA) can be claimed twice in four years only and that too just for domestic travel. This is unfortunate, as many people go on foreign holidays now. In the coming Budget, it is hoped that the Government will relax such conditions and include foreign travel under LTA, letting individuals also claim against LTA every year.

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


Consider short straddle on IFCI :: Business Line


IFCI (Rs 33.35): The long-term outlook remains negative for IFCI, as long as it stays below Rs 72.70. The stock finds an immediate support at Rs 30.5 and resistance at Rs 35.55. A close above this resistance can lift the stock towards Rs 42.75. On the other hand, a close below the aforesaid support could weaken the stock to Rs 26.75 and even to Rs 24.
F&O pointers: The counter witnessed a rollover of 23 per cent to March series. Option trading signals a positive bias, as calls witnessed unwinding of open interest positions. Cost of carry at 18 per cent also signals bullish bias.
Strategy: As we expect the stock to move in a narrow range ahead of the Budget, constructing short straddle will benefit traders the most. This can be done by selling 32.5-strike of call and put. They closed at Rs 1.65 and Rs 0.6 respectively. Loss will occur if IFCI closes above Rs Rs 34.75 or below Rs 30.25. If IFCI closes at Rs 32.5, traders can book maximum profit. In other words, only over 9 per cent slide or 3.7 per cent gain, will make the position unprofitable.
Short straddle strategy is best suited when one expects the underlying stock to move in a narrow range. Maximum profit in this strategy is the premium collected, i.e., about Rs 18,000 (Rs 2.25*8,000), while the loss could be unlimited. Besides, writing option involves higher margin commitments.