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Oct 28, 2013 (4 years and 17 days ago)

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Ethics . Principles . Social Responsibility

www.jazaa.in

WEEKLY NEWSLETTER

26
th

Jan 2013


INDIAN STOCK MARKETS


Indian

shares

posted

their

biggest

daily

percentage

gain

in

almost

two

weeks

on

Friday,

as

interest
-
rate

sensitive

stocks

such

as

State

Bank

of

India

rose

on

expectations

the

central

bank

will

ease

monetary

policy

next

week
.

Markets

ended

the

week

marginally

higher

on

the

back

of

strong

corporate

earnings

from

major

Sensex

companies
.

The

BSE

benchmark

Sensex

surged

to

its

highest

closing

level

in

over

two

year,

even

as

broader

markets

underperformed
.

The

BSE

Sensex

index

gained

179
.
75

points,

or

0
.
90
%
,

to

close

at

20
,
103
.
53

points,

while

the

Nifty

50

added

55
.
30

points,

or

0
.
92
%
,

to

end

at

6
,
074
.
65
.

T
he

Indian

markets

rallied

on

Friday

on

growing

hopes

of

at

least

25

basis

points

cut

in

policy

rates

by

the

RBI

in

its

upcoming

monetary

policy

review

on

Tuesday
.

Finance

minister

P

Chidambaram

on

his

road

show

in

Hong

Kong

and

Singapore

has

assured

foreign

investors

of

continuation

of

reform

and

to

cut

fiscal

deficit
.

On

Monday


market

is

expected

to

open

marginally

in

the

green

tracing

positive

opening

trades

in

the

SGX

Nifty

and

most

of

the

Asian

indices
.


GLOBAL MARKETS


The

S&P

500

index

on

Friday

closed

above

the

1
,
500

level

for

the

first

time

in

more

than

five

years

as

strong

U
.
S
.

earnings

reports

from

Procter

&

Gamble
.


The

euro

hit

an

11
-
month

high

and

global

equity

markets

advanced

on

Friday

on

signs

of

a

healthier

European

financial

system

and

a

brighter

outlook

for

Germany
.


International

bankers

and

finance

ministers

warned

on

Saturday

that

Europe's

crisis

was

not

over

even

though

the

euro

currency

is

now

stabilized


Move

over,

China
.

The

market

that

has

got

bankers

attending

the

World

Economic

Forum

at

Davos

this

year

excited

is

Africa
.


Chile

hopes

to

sign

a

free

trade

agreement

with

Thailand

soon

and

is

seeking

to

expand

a

limited

one

it

has

with

India
.


All

Nippon

Airways

Co

which

has

the

biggest

fleet

of

Boeing

Co's

troubled

Dreamliner

jets,

on

Saturday

cancelled

hundreds

of

flights

until

February

18

BSE SENSEX

NEWSLETTER 26
th

Jan 2013


E
-
GOLD and E
-
SILVER







Commodity

E
-
GOLD

Last Price:
3249.9

% Return since last week:
0.23

One year Return:
15.85


Commodity

E
-
SILVER

Last Price :
5973.5

% Return since last week:
-
0.74


One year Return:
-
0.74

Editor’s Blog



An

Interest

rate

cut

is

widely

expected

in

the

RBI's

third

quarter

review

of

credit

and

monetary

policy

for

the

financial

year

2012
-
13

The

government

has

taken

steps

to

bring

its

finances

under

control

and

inflation

moderated
.

The

RBI

on

the

o
ther

hand

is

seeking

to

come

up

with

a

policy

that

counters

the

fiscal

and

current

account

deficits

to

create

room

for

monetary

easing
.

As

recently

reported

that

monetary

policy

needs

to

be

calibrated

in

addressing

growth

risks

as

inflation

remains

above

the

Reserve

Bank's

comfort

level

and

macro

economic

risks

from

twin

deficits

persists
.

I
f

inflation

recedes

further,

the

wide

current

account

deficit

may

slow

the

pace

of

monetary

easing,

indicating

a

probable

aversion

to

making

deep

cuts

in

rates

that

are

among

the

highest

of

the

major

economies
.

GDP

growth

that

once

looked

set

to

hit

double
-
digits

has

been

stuck

below

6

percent

for

the

past

few

quarters

and

is

poised

to

post

its

weakest

growth

in

a

decade
.

The

current

account

gap

had

touched

a

record

high

of

5
.
4

percent

in

July
-
September

and

is

likely

to

rise

further

in

the

December

quarter
.

Another

factor

that

may

influence

the

RBI

decision

is

the

industrial

production

data,

which

had

logged

a

negative

0
.
1

percent

growth

year
-
on
-
year

in

November

2012
.

One

cannot

ignore

the

fact

that

business

confidence

in

Asia's

third

largest

economy

over

the

months

has

worsened
.

According

to

a

survey

by

the

Confederation

of

Indian

Industry

(CII),

business

confidence

worsened

during

the

October
-
December

quarter

due

to

high

interest

rates

and

infrastructure

bottlenecks
.

Amidst

all

these

negative

forces

I

feel

it

is

mere

figments

of

imagination

to

expect

RBI

to

further

cut

down

rates

or

any

such

good

news
.









NEWSLETTER

26
th

Jan 2013


NEWS THIS WEEK



http://
economictimes.indiatimes.com/markets/stocks/stocks
-
in
-
news/maruti
-
suzuki
-
tops
-
1600
-
hits
-
52
-
week
-
high
-
on
-
q3
-
earnings/articleshow/18181440.cms




http://
i n.reuters.com/arti cl e/2013/01/26/chi l e
-
trade
-
agreement
-
i ndi a
-
i dINDEE90P04M20130126




http://
in.reuters.com/article/2013/01/26/morgan
-
stanley
-
india
-
licence
-
idINDEE90P02Z20130126


NEWSLETTER 26
th

Jan 2013


Maruti

Suzuki tops 1600, hits 52
-
week high on Q3 earnings

Rupee washes out initial gains
vs

dollar; still up 3
paise

http://
economictimes.indiatimes.com/markets/forex/rupee
-
washes
-
out
-
initial
-
gains
-
vs
-
dollar
-
still
-
up
-
3
-
paise/articleshow/18145539.cms


Chile seeks India trade pact expansion

Morgan Stanley to let India banking
licence

lapse

P&G posts solid quarter, gives CEO more breathing room

http://
in.reuters.com/article/2013/01/25/procter
-
results
-
idINDEE90O0B120130125


BSE TASIS SHARIAH 50


FIRMS IN SHARIAH 50


Thermax

Limited

is

an

INR

5
,
375

crore

(USD

1
.
05

Billion)

company,

is

one

of

the

few

companies

in

the

world

that

offers

integrated,

innovative

solutions

in

the

areas

of

heating,

cooling
,

power,

water

and

waste

management,

air

pollution

control

and

chemicals
..

It

is

headquartered

in

Pune,

India

and

operate

globally

through

19

International

offices,

12

Sales

&

Service

offices

and

9

manufacturing

facilities

-

five

of

which

are

in

India

and

four

overseas
.

Over

the

years,

Thermax

has

formed

technol ogy

partnerships

with

global

majors,

including
:

Babcock

&

Wilcox

(USA),

Kawasaki

Thermal

Engineering

(Japan),

Balcke

Durr

(Germany),

Eco
-
Tech

(Canada)

and

Georgia

Pacific

(USA
)
.

CG

coverage

universe,

only

Thermax

outperformed

the

sensex
,

aided

by

bagging

a

`
503

cr

EPC

order

for

captive

power

plant
.

Rest

of

the

CG

stocks

posted

a

qoq

decline

due

to

tepid

order

intake

and

continued

margin

pressure
.

Thermax

operates

in

China

through

the

newly

formed

subsidiary,

Thermax

(Zhejiang)

Cooling

&

Heating

Engineering

Co

Ltd,

China
.

In

this

market,

the

company

focuses

on

its

cooling

business

and

has

set

up

an

absorption

chiller

manufacturing

facility
.

The

plant

has

state
-
of
-
the
-
art

machinery

and

is

based

on

a

lean

manufacturing

platform
.

Chillers

are

assembled

on

trolleys

and

robotics

is

used

for

improving

welding

quality
.

Materials

are

sourced

locally

to

speed

up

production,

while

dedicated

small

cranes

at

work

stations,

reduce

lead

times
.



PRIOR

PERIOD COMPARISON



Previous Close

25


Jan 2013

Week Ago

21 Jan 2013

Month Ago

28 Dec 2012

Year Ago

27 Jan 2012

Value

Points

%

Value

Points

%

Value

Points

%

Value

Points

%

Shariah

50

1272

-
2.16

-
0.17

1281

-
11

-
1

1268

2

0

1112

157

14.

Sensex

20103

-
0.18

0.00

20102

2

0

19444

658

3

17233

2869

17

NEWSLETTER 26
th

Jan 2013






































Booming
Sukuk

A

recent

report

published

by

KFH

research

revealed

that

total

Sukuk

issuance

by

end

of

2012

reached

$
131
bn

with

54
%

increase

than

2011
.

The

sukuk

market

is

witnessing

extensive

growth

in

the

Islamic

Finance

sector
.

It

has

finally

broke

out

from

its

shell

of

being

a

niche

market

instrument

to

enter

a

new

era

as

an

alternative

to

conventional

bonds
.

Analysts

are

expecting

the

demand

of

Sukuk

to

reach

upto

$
421

billion

by

2016
.

The

demand

seems

to

be

rising

because

of

investors

inclination

towards

Islamic

Capital

market
.

Investors

expect

50

percent

of

their

portfolios

to

be

allocated

to

Islamic

finance

investments,

out

of

which

an

average

of

35

to

40

percent,

would

be

allocated

to

Sukuk
.

The

leading

countries

in

Sukuk

issuance

are
:

Malaysia,

Saudi

Arabia,

UAE,

and

Indonesia
.

Malaysia

dominated

among

them

in

terms

of

amount

issued,

accounting

for

a

90
.
2

per

cent

market

share
..

In

the

UAE,

the

second

largest

Arab

economy,

Abu

Dhabi's

Al

Hilal

bank

issued

a

$
500
mn

sukuk

this

year
.

The

other

reason

for

the

growth

of

Sukuk

is

due

to

the

declining

yields

for

both

corporate

and

sovereign

bonds,

the

rarity

of

high

quality

yielding

papers

and

the

flight

to

fixed

income

safety

amid

more

concerns

emerging

from

Europe
.











































HADITH OF THE WEEK


Narated

By

Abu

Bakhtari

At
-
Tai
:


The

Prophet

forbade

the

sale

of

a

dates

on

the

trees

till

they

became

fit

for

eating

and

could

be

weighed
.
"

A

man

asked

what

to

be

weighed

(as

the

dates

were

still

on

the

trees)
.

Another

man

sitting

beside

Ibn

'Abbas

replied,

"Till

they

are

cut

and

stored
.
"

Narrated

Abu

Al
-
Bakhtari
:

I

heard

Ibn

Abbas

(saying)

that

the

Prophet

forbade
...

etc
.

as

above
.


Sahih

Bukhari

Volume 003, Book 035, Hadith Number
450





GLOSSARY OF ISLAMIC BANKING TERMINOLOGY

Bai

Muajjal


A

contract

involving

the

sale

of

goods

on

a

deferred

payment

basis
.

The

bank

or

provider

of

capital

buys

the

goods

(assets)

on

behalf

of

the

business

owner
.

The

bank

then

sells

the

goods

to

the

client

at

an

agreed

price,

which

will

include

a

mark
-
up

since

the

bank

needs

to

make

a

profit
.

The

business

owner

can

pay

the

total

balance

at

an

agreed

future

date

or

pay

by

installments

over

a

pre
-
agreed

period
.

This

is

similar

to

a

Murabaha

contract

since

it

is

also

a

credit

sale
.








.


NEWSLETTER 26
th

Jan 2013


S. NO.

NAME

INDUSTRY

CURRENT P/E

INDUSTRY P/E

BOOK
VALUE

MKT.

CAP.

FULL


APPROX
PRICE

1

HUL

FMCG

28.19

43.34

0

104,219.53

470.5

2

BHEL

HEAVY ENGG

7.98

9.05

103.67

55,939.90

228.55

3

GSFC

FERTILIZER

3.54

8.43

88.25

2,572.17

64.55

4

ASIANA HOUSING

REAL ESTATE

6.99

20.67

128.47

403.46

216.8

5

ONGC

OIL EXPLORATION

11.77

11

132.03

286,608.92

335

6


RIL

OIL&GAS

14.8

15.19

503.55

503.55

897.65

7

VOLTAS

INDUSTRIAL MACHINERY

32.85

16.23

41.21

3,206.27

96.9

8

CASTROL

LUBRICANTS

33.78

26.87

12.22

14,732.98

297.9

9


CESC

POWER GENERATION

6.89

14.42

477.16

4,142.25

328.75

10

LUPIN

PHARMA

23.3

28.86

83.46

26,628.67

595.1

11

JINDAL SAW

STEEL

17.02

10.92

128.62

3,131.04

113.35

12

GRASIM

CEMENT & CONSTR

23.47

16.23

991.71

27,543.48

3001.85

13

NESTLE

FMCG

39.03

37.54

132.13

44,284.70

4593.1

14

HERO HONDA

AUTO

16.71

17.24

214.83

35,876.85

1796.65

15

BAJAJ AUTO

AUTO

19.8

17.24

208.77

60,376.43

2086.5

17

ASAIN PAINTS

PAINT

39.97

37.16

259.36

42,169.69

4396.35

18

GAIL

OIL&GAS

12.29

13.34

170.48

45,386.12

357.8

19

CIPLA

PHARMA

21.94

28.86

93.92

32,076.71

399.5

20

CUMMINS

DIESEL ENGINES

21.66

17.95

73.71

13,580.03

489.9

21

EVERONN

IT & EDUC.



11.66

305.31

219.68

100.45

22

LUMAX

AUTO

TECHNOLOGIES


33.5

17.55

172.03

351.99

376.55

23

SRF

CHEMICHALS, ENGINEERING, TEXTILE


3.83

2.89

311.73

1,130.32

196.85

24

TTK PRESTIGE


DOMESTIC

APPLIANCE

30.24

23.29

249.5

3,773.50

3327.25

25

OMNITECH SOLUTIONS



IT

7.46

20.34

186.17

282.42

188.25

26

APOLLO HOSPITAL



HEALTH CARE

39.14

33.12

166.46

10,842.72

779.35

NEWSLETTER 26
th

Jan 2013


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in

all

jurisdictions

or

to

certain

category

of

investors
.

Persons

in

whose

possession

this

document

may

come

are

required

to

inform

themselves

of

and

to

observe

such

restriction
.

JaZaa

&

affiliates

may

have

used

the

information

set

forth

herein

before

publication

and

may

have

positions

in,

may

from

time

to

time

purchase

or

sell

or

may

be

materially

interested

in

any

of

the

securities

mentioned

or

related

securities
.

JaZaa

may

from

time

to

time

solicit

from,

or

perform

investment

banking,

or

other

services

for,

any

company

mentioned

herein
.

Without

limiting

any

of

the

foregoing,

in

no

event

shall

JaZaa,

any

of

its

affiliates

or

any

third

party

involved

in,

or

related

to,

computing

or

compiling

the

information

have

any

liability

for

any

damages

of

any

kind
.

Any

comments

or

statements

made

herein

are

those

of

the

analyst

and

do

not

necessarily

reflect

those

of

JaZaa
.

NEWSLETTER

26
th

Jan 2013


contact@jazaa.in

JAZAA FINANCIAL ADVISORY PVT. LTD.

Ethics . Principles . Social Responsibility

www.jazaa.in

Corporate Office: 159/2, First Floor,
Sarai

Jullena
, Near Fortis Escorts Heart I nstitute, New Delhi
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