Reliance Power Ltd acquires 3 coal mines

Reliance Power Ltd's chairman Anil Dhirubhai Ambani on Friday said it has acquired three coal mines in Indonesia with total reserves of two billion metric tonne.
The acquisition was made by its wholly-owned subsidiary Reliance Coal Resources Pvt Ltd (RCRPL), which plans to invest Rs 2,400 crore in mine and related transportation infrastructure to take the capacity of these mines to over 25 million metric tonne per annum.
"Reliance Coal Resources has acquired 100% economic interest in three coal concessions in Indonesia," Reliance Power said.

Navratna Status to PowerGrid

The Government on Thursday granted the coveted 'Navratna' status to PowerGrid Corporation of India Ltd, giving the transmission major financial autonomy to take independent decision on investments up to Rs 1,000 crore.
R Bandhopadhyay, Secretary in the Department of Public Enterprises said "We have issued the order after the company fulfilled some of the criteria, like taking 50 per cent non-official independent directors on the board" .
With the grant of the Navratna status, the board of PGCIL will be able to take decisions on investments up to Rs 1,000 crore, or 15 per cent of its networth, without seeking approval of the government.
Bandhopadhyay said PGCIL now joins the club of 15 Navratna companies which include NTPC, ONGC, SAIL, BHEL and NALCO.

No hike in Interest rates, says Chidambaram.

Finance Minister P Chidambaram on Thursday said he is not expecting interest rates to rise following the Reserve Bank of India’s (RBI’s) decision to hike banks’ mandatory reserve requirements.
To tame inflation, the RBI on Tuesday raised the cash reserve ratio (CRR), the money banks have to keep as deposit with the central bank, by 0.25 percentage points to 8.25 per cent. India’s wholesale prices-based inflation rate has been hovering over 7 per cent for the last few weeks.
“By and large, banks have welcomed and appreciated the stance of the RBI. They (banks) were quite happy that only the CRR had been hiked and policy rates had been left untouched,” Chidambaram said after a meeting with state-owned bank chiefs.
“They (banks) do not expect the CRR hike to impact interest rates. So, going forward in the reasonable future I do not expect any increase in interest rates by state-run banks,” he said.
Chidambaram, who reviewed the performance of the public sector banks, said agricultural loans grew by 23.33 per cent, while loans to small and medium enterprises grew by over 36 per cent during 2007-08.
Personal loans increased by 16.3 per cent, of which, housing loans grew by 16.44 per cent and automobile loans by 23.01 per cent.
Chidambaram also expected banks to return a better performance in 2008-09. The RBI has projected 20 per cent growth in advances and 17 per cent growth in deposits for 2008-09.
Gross bad debt of the public sector banks declined to 2.17 per cent in 2007-08 from the previous year’s 2.7 per cent.
Chidambaram also urged banks to focus on debt-swap schemes, where they offer loans to farmers to pay off local money lenders.
The finance minister also underlined the need for banks to lend more to persons of non-farming professions such as artisans, barbers and cobblers in rural areas.
He urged them to review their derivative portfolios and make sure customers understand them fully. Chidambaram expected loans to the housing sector to increase without impacting interest rates as the RBI had changed housing loan portfolio norms.

Downward trend of Stock Market turns Mutual Funds into net sellers now

As stock markets is continuing in its bearish onslaught, domestic mutual funds are turning net sellers. So far, up to March 18, they have been net sellers to the tune of Rs 1,515 crore, as per the data on mutual fund transactions released by SEBI.
The development comes in the wake of their waning interest in taking up fresh investment commitment with the mutual fund industry’s net purchases coming down to Rs 513 crore in February from Rs 7,700 crore in January.
Analysts see this as a natural reaction to the market trend as during March alone the pivotal index of the BSE, the Sensex, fell by 10.09 per cent. During January-February it declined by more than 13 per cent.
In the current market anyone would be cautious. One is not sure at what level the market will stabilize. There is hardly any positive clue coming from any quarter. So some selling is expected.

RELIANCE POWER TO ISSUE BONUS SHARES IN THE RATIO OF 3:5

RELIANCE POWER TO ISSUE BONUS SHARES IN THE RATIO OF 3:5 TO OVER 4.1 MILLION PUBLIC SHAREHOLDERS

RELIANCE POWER FIXES BOOK CLOSURE DATES FOR ISSUE OF BONUS SHARES

Mumbai, April 25, 2008: Reliance Power Limited today announced date of closure of its Register of Members from Tuesday, June 3, 2008 to Thursday, June 5, 2008 for the purpose of determining the entitlement of shareholders to the Bonus shares to be issued by the Company.

As approved by the shareholders of the Company, Reliance Power will issue Bonus shares in the ratio of three new equity shares of Rs 10 each for every five existing equity shares of Rs 10 each held, to the public shareholders of the Company.

The bonus shares will be issued to those shareholders whose names appear in the Register of Members as at the end of the close of business hours on Monday, June 2, 2008.

source: Reliance Power Ltd.

Gray Market

Definition: an unofficial market in which goods are bought and sold at prices lower than the official price set by a regulatory agency. Also Gray Market is an unofficial market where new issues of shares are bought and sold before they become officially available for trading on the stock exchange. The sale or import of goods by unauthorized dealers.

Trading in gray or "when-issued" markets can provide a good indication of demand for a new issue. In some parts of the world "gray" is spelled "grey". In this case, items that were manufactured abroad and imported into a country without the consent of the trademark holder would be a gray market good.

Gray Market Merchandise

American consumers are purchasing bargain priced merchandise that was originally not intended for sale in the U.S. marketplace, in increasing number
This "grey market" merchandise ranges from perfume and watches, to electronic items and cars, and is usually sold through the mail, at specialty stores, discount outlets and at some larger retail outlets.
While not usually illegal, grey market merchandise can result in unexpected disadvantages to the buyer, the Better Business Bureau warns.
In many cases, the disadvantages may outweigh the cost savings. For example, grey market goods may not be covered by the manufacture's warranty or if the product does come with a warranty, it may not be valid in the U.S. If such a product breaks or is defective, the manufacturer may not be willing or even required to rectify the problem. Other disadvantages may be nuisances; for example, instructions may be printed in a foreign language.
In some instances, the product may not comply with U.S. laws and may require costly adjustments prior to being used legally within the U.S. Grey market cars, for example, may not comply with federal pollution and safety standards, and thereby will require a number of costly alterations in order to become legally titled and licensed in the U.S.
The BBB recommends that before you buy a grey market item, decide whether any potential savings are worth the trade off. Have the merchandise inspected by someone knowledgeable about the product. In the case of cars, you can check the vehicle identification number with the manufacturer's authorized representative. Keep in mind that these goods are seldom eligible for manufacturers' price rebates, may be models no longer available in the U.S., and may require work not offered by the U.S. distributor.

Share Market Analysis - Two sides of a coin

A very good article. One must ponder over the points mentioned in the article. Please read till the end because every coin has 2 sides. And who says that there is gain on One side and loss on the other. You can take benefit from both the side.

It good to read if you are investing in share market….If you had bought 100 shares of Wipro at the rate of Rs 100 per share in 1980, they would be worth Rs 200 crore today. If you had invested Rs 10,000 in Infosys shares in 1992, you would be richer by Rs 1.5 crore today. If you had invested Rs 1,000 in Ranbaxy in 1980, you would have got Rs 1.9 crore today! And not so far back in time, if you had invested Rs 40,000 in Unitech during the lows of 2004, your bank account would see a whopping Rs 1.1 crore today!
Some guy out there knew this. Today, he is laughing all the way to the bank.So what was the magic strategy that made this guy so rich? Simple.He bought, he waited. Waited for all those share splits and bonus declarations. Waited for the company to grow from strength to strength. Waited even when the shares teetered only to recoup in a few years' time. Just as a child takes time to realize his/ her full potential, so does an investment need time to reward you handsomely. Sure, the times are uncertain now. But let that not scare you to sell for a loss.
Patience pays. Look back. You will notice that selling in such times makes no real sense in the longer run. Those who didn't sell their stocks during the May 2006 crash but had, in fact, bought more would be a very happy lot today. Investing long term is like that: it rewards you handsomely. Always. Exercise patience. As champion broker Rakesh Jhunjhunwala said recently, if you want to learn more about patience, get married! The way I see it, you don't really need to get married to learn patience. Just look back in time. All these stocks have been multi-baggers for those who stayed on for the long term. They would have fetched you unimaginable returns today.
Do your research. You will learn a thing or two about making crores from a few lakhs. You can still make those crores! Turn a deaf ear at the sceptics; look at beaten down sectors.
Consider aviation and hospitality. Today, aviation stocks are way below their lifetime highs. But, as India grows, so will travel. And within the next three years, they will reward you handsomely. Most people ignore aviation and hotels. And that is why they merit my attention. Pick up stocks that others are ignoring. People who create wealth do things that others do not. I am sure you could make crores if you do too!

And the response to this..........

You have stated only one side of the long term investment story citing Infosys, Ranbaxy and Unitech. That too u have mentioned the investment year as 1980/1992. Now I would like to state that the other side of the investment story pertaining to the year 1992 to date. Take K - 10 stocks. e.g. Square D Software, Himachal Futuristic, Global Tele, Silverline, Pentafour software, SSI etc., If any one invested their money in these stocks during tech boom particularly the period year 1999-2000 and waited till date how many folds their money increased? Everybody lost the principal, interest and ended with huge loss. For their patience they received only mental worries.

Therefore my point is don't wait for longer time. If your investment gives you at least 20/30 percent just come out and invest in some other counter. Select the scrip on the basis of good track record of the company. Invest during correction. Once you book the profit in one company immediately don't switch over to another company blindly. Study the scrip. Take technical look also. It is always good to show you an idea of support and resistance to you.

All the existing and new investors are please be careful on the market.. Don't give weightage to one side of the story. Each coin has two sides. so see , think and decide it.

Anonymous