Amazon shares hit on growth concerns

Amazon.com Inc's stock sank on Friday on concern about slowing growth at the world's largest Internet retailer.

Late Thursday, the company reported slower revenue growth and offered a disappointing outlook for this quarter, exacerbating uncertainty about the health of its business beyond the United States.

Amazon faces a sluggish European economy and inconsistent efforts to break into emerging markets such as China, where competition from the likes of Alibaba is intense.

"Amazon's now growing at about 2x eCommerce, compared to 3x a year ago," Doug Anmuth, an analyst at JP Morgan, wrote in a note to investors following the company's results.

Traditional retailers are losing less market share to Amazon than they used to as they increase selection online, price-match more aggressively, and work to combat showrooming, Anmuth argued.

Amazon shares were down 7.3 percent at USD 254.63 late on Friday morning on the Nasdaq.

08.10 | 0 komentar | Read More

Bajaj Auto awaits final rules on quadricycles

Even as Bajaj Auto waits for a government-appointed committee to come up with the final rules on quadricycles, the two-wheeler major continues to face opposition over the RE60 in India from competitors who have raised safety concerns amongst other dissenting voices. 

However, CNBC-TV18 learnt exclusively that the company is seeing interest picking up from export markets .

The deputy Prime Minister of Singapore will be visiting Bajaj Auto on May 4 to discuss export potential for the RE60. Singapore is not the only country. Similar interest has been expressed by countries both from the Latin Americal as well as the African region. This export interest is coming in for Bajaj at a time when its domestic competitors are becoming increasingly vocal.

Earlier on Friday, Maruti pointed to the safety concerns in the RE60, which is Bajaj Auto's four-wheeler and comes under a new classification of vehicles called the quadricycle.

Tata Motors ' Karl Slym, in two different tweets, said, "The number of wheels do not automatically make us better. It is adherence to tried and tested safety and emission norms. Why? The government and industry have been accelerating efforts in traffic safety and environment now we consider the quadricycle."

What all these companies are pointing to is that the safety and other norms for quadricycles and cars are different at the moment. Something which Bajaj Auto refutes by saying that a quadricycle is not really a car and that it should be sufficient if the Indian norms follow globally established norms.

The governments report clarifying what the guidelines and specifications are for the quadricycle category is awaited.

08.10 | 0 komentar | Read More

RBS sells 4.62% stake in SKS Microfinance for Rs 63 cr

The Royal Bank of Scotland (RBS) on Thursday offloaded 4.62-percent stake in Hyderabad-based SKS Microfinance for about Rs 63.50 crore. According to the data available with the stock exchanges, RBS sold 50 lakh shares, amounting to a 4.62-percent stake, of SKS Microfinance through open market transactions.

The shares were sold on an average price of Rs 127.01 valuing the transaction to Rs 63.50 crore. Meanwhile, Merrill Lynch Capital Markets Espana has acquired 49.95 lakh shares of SKS Microfinance for Rs 63.48 crore.

At the end of March quarter, RBS Asia Merchant Bank (Singapore) Ltd held 50 lakh shares or 4.62 percent holding in the micro finance player. In September, RBS had bought 50 lakh shares of SKS from Deutsche Securities Mauritius for a little over Rs 58 crore through open market transactions.

Earlier, in July, Deutsche Securities Mauritius had picked up 9.15 percent , or 95 lakh shares, in SKS through qualified institutional placement for about Rs 78 crore. SKS Microfinance scrip dropped 1.52 percent to settle at Rs 129.20 on the BSE.

08.10 | 0 komentar | Read More

Brace for correction; bet on media, Titan: Experts

Key equity benchmark indices closed with hefty gains on expiry day. The Nifty closed at one-month high led by index heavyweights like GAIL, Tata Motors, Dr. Reddys, Axis Bank and NTPC .  The Sensex closed at 19,406.85, up 227 points and the Nifty ended at 5,916.30 up 79 points, a level last seen on March 14. About 1,278 shares advanced, 1,200 shares declined, and 1,190 remain unchanged.

Speaking to CNBC-TV18, Sudarshan Sukhani of s2analytics.com says, "It is not possible for traders to make consistent returns daily. This uptrend came in at 5,500 and brought the market all the way to 5,900. At this point, traders must become careful. You cannot get a 400-point gain every month. It is beyond expectation. So, a phase of consolidation is bound to occur in May. The phase of consolidation could turn very choppy too."

In the light of the upward market rally, SP Tulsian of sptulsian.com lists some of his top picks. "I have a 'sell' call on IndusInd Bank and Titan Industries . Investors could take a call on IndusInd with a target of Rs 462 and a a stop loss of Rs 470. For Titan, investors could set a target of Rs 258 with a stop loss of Rs 262 or Rs 262.50. Both the stocks show weak trends. As the rollovers are quite low for both stocks, investors not able to catch the target or stop loss, should look for a return of about 1 percent on the weaker side. Even if they enter at the current price, they should look for a gain of about 1 percent on the short side."

On L&T Finance's results , Tulsian does not expecting any positive surprise. "Their earnings for Q3 over Q2 have been flat and a bit disappointing. I do not think that the results will really cheer the market going forward."

Jet Airways is up at about 11 percent after slipping a quite a bit from the highs of trade . "The only ambiguity in the whole deal is whether the open offer will act as a trigger. The market has started to prepare for the open offer turning out to be a damp squib and that has led to the share price subdued at Rs 635-640. But if the open offer triggers the market, then the stock will move to Rs 680-685. I don't think that there is much downside as the stock is virtually ruling at  its lower end of Rs 635, " says Tulsian.

Tulsian holds a positive view on LIC Housing Finance , which is slated to announce results on Friday, has posted dismal performance over the past few quarters. "Some caution is required as the NIM is a bit subdued. However, I will not be too worried because strong results can make the stock to touch Rs 260. If earnings disappoint, the stock could fall  to Rs 222-224 which serves as a good level to buy."

Though Tulsian cheers Hindustan Zinc earnings, he raises concerns regarding the company's performance in Q1. "There has been a fall in the silver realisations and EBIT of the silver business remains subdued. That is the reason for the stock correcting to about Rs 105 last week. So, I do not hold a very positive view on the stock."

Offering a perspective on Maruti Suzuki , which is to announce results on Friday, Tulsian does not expect much disappointment from Maruti. "I am not positive on the share price. Though the share has moved up more than Rs 300 and even if the company manages to announce satisfactory results, considerable profit booking is expected to set into the stock. So, I'm cautious on Maruti and expect the stock to correct to about Rs 1,450 in the next series."

Media stocks had a new lease of life in today's trade. "I have been positive on all the media stocks after digitisation across 38 cities. But honestly, I do not expect today's rally to repeat itself. Zee Enterprise , Sun TV and TV18 are really good stocks, but one has to really look to enter on dips. Investors could be a bit cautious on these stocks in the May series and enter on a correction of 3-4 percent."

Tulsian rates the earnings announced by United Phosphorus to be very robust and calls the earnings per share (EPS) of about Rs 6 for the quarter as "really remarkable". "But it is unfortunate that this stock never participates and the market has held no fancy for this stock."

With ICICI Bank to announce earnings on Friday, Tulsian sees little reason for disappointment. "But after the RBI policy, for the entire May series, I am cautious on all banking stocks."

08.10 | 0 komentar | Read More

Axis Bank appoints KPMG for money laundering inquiry

Moneycontrol Bureau

Axis Bank has appointed KPMG, one of the big four consulting firms to carry out a forensic investigation into the alleged money laundering case. According to Somnath Sengupta, executive director of the bank, the lender has however not suspended its employees who were allegedly involved.

"KPMG is conducting an external investigation into the alleged money laundering case. We have moved 20 employees, who were allegedly involved, to the administration department (from their respective vertical). We have deactivated their employee IDs. All inquiries are already initiated. So far, we have not found any evidence of money laundering in the bank," he told reporters while announcing the bank's fourth quarter earnings .

However, he was not sure of any specific date within which reports of those investigations will appear. The bank has identified 12 branches, which are susceptible to such allegations. These branches are across India.

A month back, Cobrapost.com, an investigative news website, ran a sting operation alleging that three private sector lenders including ICICI Bank , HDFC Bank  and Axis Bank  were involved in money laundering cases. Immediately after that, individual banks came out with press statements giving clarifications and ordering internal and external investigations.

On Tuesday, HDFC Bank said that it had suspended around 21 employees for their alleged involvement in the case. However, it will evaluate their suspension once the final reports of all investigation are out.

"While we had our own internal audit, we have ordered for a forensic investigation by consultancy firm Deloitte. At the same time, the regulator too is doing its own scrutiny. As of now, there is no transaction of this type (money laundering), which any of these audits receives. There is no systemic risk," Paresh Sukthankar, executive director at HDFC Bank, had said on Tuesday.

The Reserve Bank of India (RBI) too discussed the issue with those banks. Currently, it is investigating the matter. RBI deputy governor K C Chakrabarty too hinted at taking corrective measures to fix the problem. However, he ruled out any systemic risk due to it while refusing to divulge details of investigation.

Last week, Rajiv Takru, the secretary at the Department of Financial Services - Government of India, had met RBI in Mumbai. After the meeting, he said that the central bank report pointed out to some "aberrations", and assured action against the erring parties.

saikat.das@network18online.com

08.10 | 0 komentar | Read More

Indian economy not in stagflation; graft a concern: Roubini

Noted American economist Nouriel Roubini said India is not passing through stagflation but maintained that the prevailing conditions are "not ideal" for faster economic growth and cost of doing business is too high in the country due to "excessive levels of corruption". "Inflation is high but the growth has slowed down. It's not truly stagflation but certainly the situation is not ideal," Roubini said addressing the 44th General Assembly of the World Trade Centres Association here.

Stagflation is defined as a period of low growth and high inflation. According to him, high fiscal and current account deficits pose a risk to the Asia's third largest economy, which relies more on capital inflows to finance the high deficit in current account. "There are many macroeconomic problems which the country has faced -- low growth, relatively high inflation, high FD (fiscal deficit), large CAD, currency depreciation.... high inflation is a source of political and social instability and unhappiness among the population."

Flagging concerns regarding high level of corruption seen in the country, Roubini he said this is negative for both consumers and business houses. "Unfortunately there has been excessive levels of corruption in India and that can be a negative sentiment for consumers and for businesses. The cost of doing business is too high," Roubini said. Roubini, who anticipated the collapse of US housing market and the 2008 worldwide recession, said scams are slowing down decision making and this is reflected in slow pace of infrastructure spending. Talking about the recent slowdown in India's economic growth, he said while some of the factors responsible for the downturn were cyclical, some are structural in nature. "There are significant supply side bottlenecks in many parts of the economy, China might have too many nfrastructure, but India has too little infrastructure development," Roubini said, adding that structural reforms have slowed down in the last three years.

08.10 | 0 komentar | Read More

Sebi orders Saradha Realty to close schemes, refund money

Market regulator Sebi today ordered Kolkata-based Saradha Realty India to close all its collective schemes and refund the money collected from investors within three months, amid continuing protests against the alleged fraudulent activities of the group.

In a late night 12-page order, the capital market regulator also barred Saradha Realty India and its Managing Director Sudipto Sen from the securities markets till the time it winds up all its Collective Investment Schemes (CIS) and refunds the entire money to investors. Investors and agents of various investment schemes launched by Saradha group in West Bengal have been protesting for many past days.

Also read: Chit fund scam: Police seize Saradha Grp promoter's assets

Meanwhile, Sen was arrested today in J&K. Sebi said it would initiate proceedings against Saradha Realty and its directors if the company fails to wind up its CIS schemes and refund the investors. The regulator also warned of launching a criminal case for "fraud, cheating, criminal breach of trust and misappropriation of public funds" and initiation of winding up of the entire company through a reference to the Ministry of Corporate Affairs, if its orders are not complied within three months. Sources said investigations are on by Sebi against some other entities of Saradha group for similar violations of its CIS regulations.

The Sebi order against Saradha Realty follows an investigation launched about three years ago by it after a reference was received from the Director Economic Offences Investigation Cell, Government of West Bengal in April 2010. Sebi found that the company was collecting money from public in the range of Rs 10,000 to Rs 100,000 for 15 months to 120 months, with a promise of returns of 12-24 percent.

08.10 | 0 komentar | Read More

UK investors keen on India but with caution

Finance Minister P Chidambaram has been on the road selling the India story from London to Washington. Investors from India's third biggest FDI source the UK, though cautious, are looking at India again. CNBC-TV18's Ashmit Kumar spoke Richard Heald, chief executive, United Kingdom India Business Council (UKIBC), about the opportunities and uncertainties of investing in India.

After a dismal 2012, the Indian economy seems to be showing signs of a turnaround aided by a fall in inflation and a drop in commodity prices like oil and gold. The government's efforts to restart stalled infrastructure projects have also given investors hope. While FII flows have been strong, strategic money has been waiting on the sidelines for more clarity on the state of the economy and certainty on the tax regime. However, investors are beginning to nibble again.

Also read: Rangarajan presents FY13 report card, sees FY14 GDP at 6.4%
 
Richard Heald says "India is in transition. From the period of 90s into a mature growth period. Different aspect of the economy are in focus, including areas like e-commerce, media, creative fields, retail."

An area of opportunity that the UKIBC intends to focus is the Indian SME sector which has seen strong growth and a fair amount of interest from global private equity players. As the companies look beyond India, UKIBC wants to be the first port of call.

A bulk of the big ticket investments from the UK have come into the oil and gas sector. For instance, the RIL -BP deal and the multi-crore deal between British gas and Gujarat State Petroleum Corporation (GSPC) for supply of LNG. However, investors continue to worry about the infrastructure deficit and the slow pace of decision making.

Heald adds, "There is a pressing need for infrastructure. It is not being built at the speed or with the purpose that is desirable. There is a lot of bureaucracy. These are fundamental issues that need to be addressed. It's disappointing that the seriousness and the urgency is not shown."

The Vodafone tax dispute continues to be a cause for concern with no breakthrough in the conciliation process so far. With election looming large and with the BJP threatening to reverse the UPA's decision to allow FDI in multi-brand retail if it came to power. apprehensions remain on investing in retail as well. So, for now it continues to be wait and watch but with cautious optimism.

08.10 | 0 komentar | Read More

Mahindra Lifespaces Q4 net up 95% at Rs 82 crore

Mahindra Lifespaces , part of the Mahindra group, on Monday posted a 95-percent increase in its consolidated net profit at Rs 82 crore for the quarter ended March 31 mainly on the back of improved sales. Its net profit for the same quarter last fiscal stood at Rs 42 crore.

The company's total income during the January-March quarter increased by 32 percent to Rs 368 crore against Rs 279 crore in the corresponding period of FY12.

"Our focus on execution in the residential segment, coupled with strong sales momentum and new customer additions in Mahindra World City Chennai and Jaipur, have significantly contributed to the robust performance this year," company's managing director and chief executive Anita Arjundas told PTI.

The company will continue to focus on executing its ongoing projects in the coming years, she said. "By FY15, we would see execution of some of our ongoing projects as well as some of our forthcoming projects. In the next 2-to-three years, we believe many of our projects would be completed. We believe we are well placed for continued growth driven performance in the coming years," Arjundas said.

The company expects to complete five million sqft development in FY14 even as it added new land inventory with an estimated development potential of 2 million square feet in FY13.

The company's revenues during 2012-13 stood at Rs 772 crore against Rs 728 crore in FY12. Its net profit during the period grew 19 percent to Rs 141 crore against Rs 119 crore last fiscal.

The company's residential and commercial development footprint includes over 7.7 million square feet of completed projects and close to 10 million square feet of ongoing and forthcoming projects and is present in cities like Mumbai, Pune, Nagpur, Gurgaon, Faridabad, Jaipur, Chennai, Hyderabad and Bangalore.

When asked whether the company plans to expand in other cities, she said, "I feel we are quite comfortable in the areas where we are present currently. So far we have no plans to enter into new regions."

08.10 | 0 komentar | Read More

Food Security Bill estimates subsidy of Rs 1.23 lakh cr

Implementation of the National Food Security Bill (NFSB), aimed at providing legal entitlement to food to around 67 percent of the population, is likely to cost the exchequer around Rs 1.23 lakh crore, the government said on Monday.

"As per the provision of the Bill, an estimated annual requirement of food-grain at 2011 population levels is 60.74 million tonne and the corresponding estimated food subsidy for 2013-14 costs is about Rs 1,23,084 crore," food minister KV Thomas said in a written reply to Rajya Sabha.

However, he added, the actual requirement would depend upon the final shape of the Bill and the time by which NFSB comes into force. Finance Minister P Chidambaram had allocated Rs 77,740 crore as food subsidy in the budget estimates for the current fiscal and kept Rs 10,000 crore over and above the normal food subsidy, towards the incremental cost.

The Bill was introduced in Lok Sabha in December, 2011, and then referred to a standing committee on food, consumer affairs and public distribution for examination.

"The standing committee has given its report. The report has been examined by the government in consultation with the states and UTs based on which the government proposes to move some amendment to it," Thomas said.

The proposed amendments in the Bill are mainly aimed at providing a simpler framework and more flexibility to the states besides lowering their financial burden. In the original Bill, introduced in the Lok Sabha in December 2011, the Centre had proposed 7 kg of rice or wheat or millet a month for priority category at Rs 3, Rs 2 and Re 1 per kg, respectively, while at least 3 kg per person per month for general households at 50 per cent of the support price.

08.10 | 0 komentar | Read More

Passports should end doping system "disaster" - Berdych

By Gregory Blachier

MONTE CARLO (Reuters) - Current anti-doping measures in tennis are a "disaster" and the introduction of biological passports can only improve matters, world number six Tomas Berdych said.

"The system right now... I don't know how it works with the others but with me, it does not work at all," the Czech told Reuters in an interview at the Monte Carlo Masters this week.

"You have to say every single day... where you are. I've done this for three or four years already and I had only two tests out of the tournaments," Berdych said.

"So why do I have to do this all the time and then they come twice in four years? It's just like complete nonsense."

Under International Tennis Federation (ITF) rules, players must give their location for at least one hour of each day in case they are required for an out-of-competition drugs test, usually by means of a urine sample.

"If some people were hired to think about that and have come up with this kind of idea, if it was me, I would have fired them straight away," Berdych said.

"This system is a complete disaster. So whatever they're going to do differently, it's going to be good, new or whatever."

The ITF said last month it would introduce biological passports for players this year, in line with measures adopted in other sports such as cycling.

The new system, under which test results are collated over time to enable testers to track any changes which might indicate doping, would involve more blood tests being done every year, the federation said.

According to their website (www.itftennis.com), the ITF carried out 21 out-of-competition blood tests in professional tennis in 2011.

By comparison, cycling's world governing body UCI conducted 3,314 in the same year.

Top players, including 17-times grand-slam winner Roger Federer, have welcomed the introduction of biological passports in tennis and Berdych added his backing.

"Sure, I'm definitely on this side. There should be more tests," Berdych said.

World number nine Richard Gasquet of France also praised the new system.

"We still have urine tests that are a bit behind the times and we know that potential cheats always are way ahead," he told Reuters.

Urine tests can detect many drugs including EPO, one of several substances taken by disgraced former Tour de France cycling champion Lance Armstrong, but only blood tests can detect human growth hormone.

World Anti-Doping Agency (WADA) head John Fahey earlier this year called on tennis officials to increase the number of blood tests. (Reporting by Gregory Blachier; Editing by Clare Fallon)

08.10 | 0 komentar | Read More

Will.i.am, Bieber play second fiddle to Rudimental in UK charts

LONDON (Reuters) - London drum'n'bass quartet Rudimental notched up a second number one in Britain's official singles charts on Sunday, at the expense of global stars Will.i.am and Justin Bieber who had to be content with the number two spot.

Rudimental's song "Waiting All Night", featuring Ella Eyre, jumped straight to the top spot with 107,000 sales, beating Will.i.am's "#ThatPower", a collaboration with Bieber, by 38,000, the Official Charts Company said.

Rudimental had achieved their first number one in 2012 with their summer anthem "Feel The Love".

French electronic duo Daft Punk shot to the number three spot with their new single "Get Lucky", which racked up 50,000 sales in just 48 hours after it became available on Friday morning.

The track is the first from Daft Punk's hotly awaited album "Random Access Memories", which the publicity-savvy duo have been trailing with mysterious teaser clips that have been circulating around social media.

The Official Charts Company said the campaign was already paying dividends with the strong performance of "Get Lucky".

Korean Internet sensation Psy, the man behind the ubiquitous "Gangnam Style" video clip, leapt up 51 places to reach 10th place with his new song "Gentleman".kr

In the albums charts, Canadian crooner Michael Buble's "To Be Loved" outsold the rest of the top five combined to notch up 121,000 sales and hit the number one spot in its first week.

"To Be Loved" is the follow-up to Buble's festive album "Christmas", which has sold 1.8 million copies in Britain since its release in October 2011.

(Reporting By Estelle Shirbon; Editing by Sophie Hares)

08.10 | 0 komentar | Read More