Friends,
You may recall that you were advised for acquiring sugar stock a few months back. Since then the sugar stocks have appreciated between 40% to 140% . The reckoning is that with ethonol blending ,co-generation benefit and slight firming up of sugar prices , the sugar companies may breathe easy. It is now advosed that the sugar stocks held should be partly sold off.
The annual growth of retail portfolio for banks was over during 2003-06 which will moderate to about 22% over the coming years.A CRISIL study says that the retail loan portfoilo of banks at Rs 6 lac crs would have NPA of about 4% by march 09 as against 2.7% in march 08. Credit Card loans and personal loans are riskier and form 17% of the outstanding retail loans.
Gold has topped the $891/OZ mark and may still go up as demand from China is expected to emerge.
Growth in six core industrial sectors has come down to 6% in Apr-Nov 07 from 8.9% during Apr-Nov 06.
Mobike sales have come down by 11.4% in Dec 07 while car sales jumped by 8.8%. It is only a matter of time and car sales would se lower growth. With the Tat’s mini car having taken shape and to the liking of people there would be who would like to postpone car purchase by a few months waiting for Tata’s car to be out in market. Tata Car has ruffled many feathers in cap and reality has proven to be more disturbing than the expectation. Maruti sure would have to counter the challenge otherwise their lower end cars would find no takers. There is however the cost of maintenance factor that may still go down in favour of Maruti besides the saleability of the used car. Should they be able to reduce price for the entry level car by 10% they can still come out winner.
Hero Group will introduce electric three wheelers jointly with Ultra Motor of UK.
Bajaj jointly with Renault, is going to put in market a small car by 2010 which ill be a fuel efficient one, running 34 KM in a litre .
Ford too is investing $500 million for a small car project in Chinnai. The car would come in two years . In light of new small cars coming , govt. should raise duty on large cars so that in the mean time the flooding of large cars is stemmed.
M & HVs have suffered on sales front, selling 5.3% lower numbers.
Tata Steel has just enough ore reserves to make steel for another 20 yrs at 7 M/T capacity at Jamshedpur. Clearly Tata Steel now has no edge over a green field project. Both have to have raw material surity and the green field project would have better security due to fresh mines being reseved for the them.
S&P/Case-Shiller Home price index which measures home values in 20 cities in US shows that home prices have fallen an average 7% since peaking in June 2006. Actually price to rent ratio is real determinant about the buy-sell decision where mortgages are involved. Rent to price ratio is OK around %% but is rests at 3.5% presently. US employment figures suggest that the prices would have to down rather the rent going up and therefore the US Sub-prime crisis can not be wished away.
China is seeing extraordinery rise in food prices and is worried. It also has the inflation at eleven year peak at present.
ICICI Bank would unlock value by listing four of its businesses seperately. Indian Life Insurance Companies are increasingly becoming face of Indian investors in terms of investment in equity markets. They have pumped in $4b to $6b in to market this quarter, leaving FIIs behind.
Markets can go up only be more distablised , there alraedy is volatality of high order in markets. You should lighten some burden at this stage for the sake of prudence.
HariOm,
krsnaKhandelwal
