Market Watch


[9:07am, 13/08/2014] Prashanth: Economic Times
Business Standard
Ø  ‘Petroleum Ministry for 5% disinvestment in ONGC’
Ø  RBI sparks confusion despite $4.1 bn cash injection
Ø  Goods and Service Tax to be a reality soon: FinMin
Ø  IOC to invest Rs 8,700 cr in Mathura refinery project
Ø  FT appoints investment banker to sell stake in IEX
Ø  Finance Ministry officials meet S&P team for rating review
Ø  July CPI: Retail inflation accelerates to 7.96%
Ø  Brokers write to Sebi for refund of deposits from MCX-SX
Ø  Goa govt relaxes norms for iron ore auction
Ø  RBI net buys $597 million in spot forex market for 3rd month in June
Ø  Sebi cancels registration of Morgan Stanley Mutual Fund
Ø  Ratan Tata calls for more collaboration among India Inc
Business Line
Ø  IOC back in black on forex gains and lower interest outgo 
Ø  Cement makers, developers face off over prices 
Ø  Govt may opt for UMPP bidding route for coal mine auction 
Ø   TRAI proposes restrictions on political bodies, corporates entering TV, newspaper business
Ø  Fertiliser Ministry to set up task force for draft policy    
Ø  Rajan warns capital outflows will test Indian economy
Ø  Bhel results confirm suspicion that recovery is some time away
Ø  BPCL’s Q1 profit jumps eight-
fold as subsidy saves the day
Ø  Tata Power posts Rs111.3 crore net loss
Ø  Bhushan Steel Q1 net loss at Rs141.63 crore
Financial Express
Financial Chronicle
Ø  SC asks Centre to produce files related to grant of cancer drug licences to GSK, Merck Sharpe
Ø  Disinvestment panel on lines of disbanded EGoM in offing
Ø  SC refuses to lift ban on export of iron ore pellets from K’taka
Ø  Industrial output growth slows to 3.4% in June
Ø  Moody’s pegs India economic growth at 5 pct in 2014
Ø  India to Switzerland: Join group on illegal money info sharing
Ø  Monsoon reduces peak power shortage in July to 3.9 pc
Ø  Wockhardt Q1 net profit falls 94 pc on plant bans
Ø  Foreign investors need prior RBI nod to buy more shares in BoB
Ø  Ericsson wins Vodafone India’s contract for payment solutions
[11:58am, 14/08/2014] Prashanth: nifty going to make a top at 26th August… 7950-8150 level.

Market Watch

Book Value of a Share





Book value gives an idea on the financial position of a company.Book value is the residual of Assetsand Liabilities.

Book Value helps its stake holders to understand the returns they would be getting if company is liqidated.

Comparing book value to the company’s market value, it indicates whether a stock is under- or overpriced.

Market Watch

Tax Free bonds

It is obious that before investing in bonds, one will look for possibilitis of investing in tax-free bonds.

HUDCO Tax Free Bonds is one such option to invest upon. Details on returns as given below.

HUDCO is a public financial institution under the Companies Act and also registered as a housing finance company under NHB.A 100% government of India undertaking that seeks to provide long-term financing for social housing and urban infrastructure development projects.
AA+ rating from Care Ratings for the current HUDCO Bonds. That is one notch below the top rating but still considered low risk and investment worthy. REC’s bonds enjoyed higher rating.
HUDCO’s rating is slightly lower as a result of high exposure to sectors such as power and real estate, which are considered vulnerable in the current situation. Nevertheless, that it is a government company having healthy capitalization levels and access to low-cost funding provides comfort.
Hence, the slightly lower rating need not act a deterrent. The company had net profits of Rs 700 crore as of March 31, 2013, on total income of Rs 2923 crore.

Coupon Rate
Category 10 Years 15 Years 20 Years
Retail Investors(upto 10 Lacs) 8.51% 8.58% 8.76%
HNI/Corporate 8.76% 8.83% 9.01%

If you are in the 20-30% tax bracket, HUDCO tax-free bonds will prove to be attractive for you.