Angel Broking - Technical Report- 30.11.2012

Technical Report

Angel Broking - Market Outlook - 30.11.2012

Market Outlook

New Issue - Net 7.88% Tax-Free Interest from AAA rated Govt Bonds from REC

Dear Investor,

We are pleased to present you the details of Tax-Free Bonds issued by Rural Electrification Corporation (REC).The interest earned on these bonds is fully exempt from tax and there will be no deduction of tax at source from the interest, irrespective of the amount or the investors’ status. The bonds have been rated “AAA” by CRISIL, CARE & ICRA and carry an attractive tax-free coupon ranging between 7.72-7.88% (Tax Free). The pre-tax yield works out to around 11.17-11.40% (for Retail investors in the highest tax bracket).

Bond Details:

Particulars	Details
Bond Structure	Tax Free, Secured, Redeemable, Non Convertible Bond
Tax Free Coupon	7.72% (10 Yr) & 7.88% (15 Yr)
Rating	“AAA” by CRISIL, CARE & ICRA
Face Value (per bond)	Rs.1000
Minimum Application	Rs.5,000
Issuance	In Physical & Demat mode
Listing	Proposed to be listed on NSE & BSE
Issue Opens On	Dec 03, 2012
Issue Closes On	Dec 10, 2012 (First Come First Serve)

Illustration of Pre-Tax Yield:

Retail Applicants	10 Years	15 Years
Tax Free Returns (%)	7.72	7.88
Pre-Tax Yield (%)	11.17	11.40

Assuming 30.9% tax bracket

Company Profile:

Rural Electrification Corporation Limited (REC), a Navratna Central Public Sector Enterprise under Ministry of Power, was incorporated on July 25, 1969 under the Companies Act 1956. REC a listed Public Sector Enterprise of Government  of India had a net worth of Rs. 12,789 Crore as on 31.03.11.  Its main objective is to finance and promote rural electrification projects all over the country.  It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them

Financial Highlights:

                                                                               (Rs. Cr)

FY Ending	2008-09	2009-10	2010-11
Total Income	4,931.28	6,707.60	8,495.26
Net Profit	1,272.08	2,001.42	2,569.92
Reserves	5,331.42	10,092.88	11,801.16

Kindly revert for any further clarification on the bonds.

Axis Midcap - Good show since launch: HOLD :: Business Line

SGX NIFTY 5,903.00 +26.50 ; Markets continue to move UP..

SGX NIFTY 5,903.00 +26.50 ;
Singapore exhcnage
8:45 AM India time
30 Nov 2012
Markets continue to move UP..

Fund Talk - Track your fund's performance regularly :: Business Line

Allocate sufficient amounts to other asset classes such as debt, gold and real-estate. While judging a fund’s returns, consider its benchmark’s performance as well as that of peers.

I have been investing Rs 10,000 every month in Sundaram Capex Opportunties fund for the last 54 months and Rs 20,000 in Birla Sun Life Midcap for the past 26 months. While the former has given negative returns, the latter has generated slightly positive returns.

What do I do with these funds?

P.N.Dalmia

FII & DII trading activity on NSE and BSE 29-11-2012

Category		Buy	Sell	Net
		Value	Value	Value
FII		7345.23	5765.26	1579.97
DII		1332.51	2228.73	-896.22

 

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