MARKET CORRECTION...FISCAL CLIFF... BlackRock SAYS...

Spain, U.S. fiscal cliff may spark market correction: BlackRock's Fink, October 13, 2012 9:04 AM ETBy Chikafumi Hodo and Nathan LayneTOKYO (Reuters) - Investors should brace for three or four months of jittery markets due to uncertainty over support for Spain and the looming "fiscal cliff" threatening the United States economy, BlackRock Chief Executive Laurence Fink said in an interview on Saturday.Fink, head of the world's largest money manager overseeing $3.6 trillion in assets, said he was still bullish on U.S. equities but warned that the stock market could lose 5 to 10 percent in a correction in the final months of the year."The next three to four months we are going to probably have greater uncertainty and the market may test itself one more time," Fink told Reuters during a trip to Tokyo, host to this week's semiannual meeting of the International Monetary Fund. Behind those jitters is uncertainty over when and how Spain, the latest epicenter of the euro zone debt crisis, might seek financial aid as it struggles with a huge budget gap, soaring debts and the need to reform its economy, Fink said.But for all of the troubles facing Europe, Fink said just as much time was spent at the IMF meetings talking about the so-called fiscal cliff of expiring tax cuts and looming spending cuts that will hit the U.S. economy early next year unless congress acts.Failure to come up with a solution could knock U.S. gross domestic product in the first quarter to a 3 percent annual rate of contraction, Fink estimated, based on the current run rate of 2 percent annual growth. That risk is already hurting the economy with CEOs reining in spending and reluctant to hire workers, he said. On the other hand, a solution could trigger a substantial rally in equities and set the stage for a stronger economy, underpinned by a recovering housing market and a banking system now sound due in part to post-crisis reforms, he said.FINDING GROWTHFink dismissed the notion that New York-based BlackRock, whose assets under management are equal to the size of the German economy, may struggle to continue delivering growth. While BlackRock will not pursue large acquisitions, it is considering a couple of "fill-in" deals, he said, adding that one would be similar to its purchase earlier this year of Claymore Investments Inc, a Canadian provider of exchange traded funds (ETFs). Fink also pointed to the potential for growth in actively managed funds, where it is still smaller than a handful of its rivals, while it wants to boost its business providing institutional clients with "solutions" that address specific investment requirements. Fink said 62 percent of his company's clients are currently only turning to BlackRock to manage one product."Just think if I could expand that mindshare and help my clients and now have two products with 62 percent of my clients."  One of Fink's biggest challenges is to fend off the advance of rival Vanguard Group, which has been chipping away at BlackRock's 40 percent share of the $1.2 trillion U.S. ETF market by offering lower fees. BlackRock said a month ago that it plans to cut fees on some of its core iShares ETFs. Fink said he would be unveiling a strategy for bolstering its ETF business on Monday, two days before the company is due to announce third-quarter results, but did not elaborate on the contents of Monday's announcement.Earlier this year, BlackRock unveiled an overhaul of its management structure that expanded its global executive committee to 21 from 13. Worries have mounted about the strength of BlackRock's management bench amid persistent speculation that Fink may be a candidate to replace U.S. Treasury Secretary Timothy Geithner if President Barack Obama is re-elected.Fink said he was not giving the prospect much thought. "Unfortunately for my life right now my future is being discussed more than I'm thinking about it," he said. "I expect to be here, I want to be here, I intend to be here for many more years." Succession scenarios for Fink and other senior positions were discussed at an annual board retreat last week to take stock of the company's talent pool and identify future leaders, Fink said. "I leave the room when they talk about me. That's between the head of HR and the board," he said.(Additional reporting by Peter Thal Larsen; Editing by Edmund Klamann)  http://money.msn.com/business-news/article.aspx?feed=OBR&date=20121013&id=15668824

SUGAR SWEET NEWS BUILDING....

End sugar open sale quota at once, says Rangarajan panel, SHISHIR SINHA

NEW DELHI, OCT 12: 

One of the last regulated industries may soon find its wings, if the Rangarajan Committee’s suggestions are accepted by the Government. The committee has recommended deregulation of the sugar sector by giving freedom to mills to sell sugar in the open market.

It has also suggested doing away with the system of mills providing sugar for the public distribution system, under which the mills are required to offer 10 per cent of their production to the Government at below market prices. The committee, headed by the PMEAC’s (Prime Minister Economic Advisory Council) Chairman, C. Rangarajan, said: “Rationalisation of sugarcane pricing and liberalisation of sugar trade need to be introduced over a two-to-three year period, in a calibrated and phased manner. However, levy sugar obligation and administrative control on non-levy sugar need to be dispensed with immediately.” The committee submitted its report to the Prime Minister. Levy sugar is meant for distribution through ration shops, while non-levy sugar is for sale in the open market.The Centre fixes the quantity of sugar that mills can sell in the open market and ration shops every month on a quarterly basis. While other sectors of the economy have been freed, the sugar industry continues to remain under the government control, right from the level of production to distribution.

“Markets in almost all sectors in India are constantly matching anticipated demands with supply. There is no particular reason why sugar market would not be able to do this,” the Committee said.The mechanism of regulated release of non-levy sugar imposes costs directly on mills (and, hence, indirectly on farmers) on account of inventory accumulation and inability to plan cash flows, the committee said. “Since this mechanism is not serving any useful purpose, it may be dispensed with,” it said. The committee has dealt with the issue of remuneration to farmers for sugarcane, while keeping the financial condition of sugar mills in the mind. It advised change in the existing system by paying fair and remunerative price (FRP) as minimum price to the farmers at the time of cane supply.

Further, it has suggested revenue share mechanism in place of the ‘tried but failed’ profit sharing mechanism. “On a half-yearly basis, the state government concerned would announce the ex-mill prices of sugar and its by-products, and farmers would be entitled to a 70 per cent (75 per cent in case of combined value of sugar and its by products) share in the value of the sugar and by-products produced from the quantity of cane supplied by each farmer,” it said. The farmers will get money after deducting FRP already paid while remaining will go to the sugar mills. Since the sugar value estimate includes return on capital employed, this implies that farmers would also get a share of the profits. With such a system in operation, states should not declare any state administered price (SAP), it advised.

Shishir.Sinha@thehindu.co.in

Growth Concern Overshadows -- Euro Weakens

Euro Weakens as Growth Concern Overshadows Central-Bank Efforts By John Detrixhe - Oct 13, 2012 9:30 AM GMT+0530 The euro declined against most of its major counterparts as concern that the global economy is slowing overshadowed policy makers’ efforts to contain Europe’s three-year-old debt crisis. The shared currency touched its lowest versus the dollar in almost two weeks as the International Monetary Fund cut its growth forecasts. It also said Greece should get more time to meet fiscal targets. The euro fell after Standard & Poor’s cut Spain’s credit rating, then rose on bets the move will pressure the nation to seek aid, unlocking a stimulus program. European Union leaders meet next week. Singapore’s dollar climbed as its central bank unexpectedly left monetary policy unchanged.  “You had the sentiment around Spain where the S&P downgrade evolved from being a concern to a potential benefit,” Noel Hebert, chief investment officer at Bethlehem, Pennsylvania-based Concannon Wealth Management LLC, which oversees about $250 million, said in a telephone interview. “The IMF news was ugly at first and then better at second as they backed off on austerity demands. If you follow the slope of where the euro went this week, that seems to generalize the path.” The euro depreciated 0.7 percent to $1.2951 this week in New York, halving last week’s 1.4 percent gain. It touched $1.2826, the lowest level since Oct. 1, almost falling below its 200-day moving average of $1.2824. The 17-nation currency fell 0.9 percent to 101.61 yen. The Japanese currency gained 0.3 percent to 78.44 yen per dollar. 

Net Shorts  Futures traders increased their bets that the 17-nation currency will decline against the U.S. dollar, figures from the Washington-based Commodity Futures Trading Commission show. The difference in the number of wagers by hedge funds and other large speculators on a decline in the euro compared with those on a gain -- so-called net shorts -- was 72,570 on Oct. 9, compared with net shorts of 50,265 a week earlier. The Swedish krona was the biggest loser against the euro as inflation abated more than forecast, raising the possibility of an interest-rate cut before year-end. A Statistics Sweden report showed consumer price growth slowed to an annual 0.4 percent in September, from 0.7 percent the prior month. A Bloomberg survey projected a decline 0.6 percent. The currency fell 0.7 percent to 8.6737 per euro and slid 1.4 percent to 6.6975 to the greenback. The krona will probably decline as European asset prices stabilize and investors unwind their bets on haven currencies including Sweden’s, according to Morgan Stanley. “We would expect the Swedish krona to lead the way with the current round of position-unwinding,” Morgan Stanley said Oct. 11 in a research report. Aussie Strengthens The Australian dollar gained against 14 of its 16 most- traded peers this week amid speculation that China, the nation’s biggest trader partner, will take steps to stimulate flagging economic expansion. The Aussie rose 0.5 percent to $1.0233. China’s economy expanded 7.6 percent in the second quarter from a year earlier, the least in three years. Growth may have slowed to 7.4 percent in the third quarter, according to the median estimate of 27 economists surveyed by Bloomberg. The euro region’s economy will expand 0.4 percent this year, 0.1 percentage point less than forecast in July, and grow 0.2 percent in 2013, versus 0.7 percent predicted three months ago, the Washington-based IMF said in a report. The world economy will grow 3.3 percent this year, the slowest pace since the 2009 recession, compared with a July forecast of 3.5 percent, it said.......http://www.bloomberg.com/news/2012-10-13/euro-weakens-as-growth-concern-overshadows-central-bank-efforts.html

NIFTY non -stop rise... but....

The markets managed to stay above 5650 level but the external EURO crisis is not over. The Nifty is took some pause after 5 weeks of non stop rise from 5215 level registered on 5^th Sep-12 to a level of 5815 on 5^th Oct-12. A steep rise of 600 points, close to 12%. Yesterday it closed at 5676 level.

The Nifty is in strong Bull grip. Most of the under performing stocks are now catching up. The metal stocks are also participating despite of their anticipated tepid results. I believe the Infy results are good but the anticipation/expectation from the huge cash pile up reserves are not made full utilization, has a dent on the stock performance. The recent purchase of Lodestone to add some more new clients and new revenue stream. The  CFO- Bala is being groomed to the top slot. The management changes are going to cap at the recent rise at 2650 level. The stock will gain some support for now at 2335 level at first level and 2229-25 at the second level. The upper side resistance is at 2548-64 level. For now the strategy is to sell and buy from the resistance levl. I believe the selling can be started from 2485 level to cover at 2250 level. The markets are for now taken some accumulation period around 5500 level. The reforms are driving the market rather than the performance of the corporate sector. The RBI is going to provide some rate cut relief much needed for the capital intensive sectors. The expansion plans are hold may start resume. The Govt spending has been focused on rural infra structure. So the rural economy is growing and the income levels are rising for spending. So the retail sector is going to take the advantage of the push. If we clearly go back and study the programmes, we can understand the policy reform changes and the growth opportunity sectors…..

GMR INFRA ...POTENTIAL....

I-T searches at GMR Group offices across country

http://www.thehindubusinessline.com/companies/article3987686.ece?homepage=true

  

Mo Yan won the 2012 Nobel prize-TRIBUTES TO Guan Moye

(Reuters) - Chinese writer Mo Yan won the 2012 Nobel prize for literature on Thursday for works which combine "hallucinatory realism" with folk tales, history and contemporary life in China. Mo, who was once so destitute he ate tree bark and weeds to survive, is the first Chinese national to win the $1.2 million literature prize, awarded by the Swedish Academy. He said the award made him "overjoyed and terrified". Some of his books have been banned as "provocative and vulgar" by Chinese authorities but he has also been criticised as being too close to the Communist Party. While users of a popular Chinese microblogging site offered their congratulations, dissident artist Ai Weiwei said he disagreed with giving the award to a writer with the "taint of government" about him.

Mo, 57, who grew up in the town of Gaomi in Shandong province in the northeast of the country and whose parents were farmers, sets his works mainly in the land of his birth.

Mo Yan is a pen name which means "Don't Speak". His real name is Guan Moye and he was forced to drop out of primary school and herd cattle during China's Cultural Revolution.

Speaking to the state-run China News Service, Mo said he was happy to have won. "But I do not think that my winning can be seen as representing anything. I think that China has many outstanding authors, and their great works should also be recognised by the world. "Next, I'm going to put most of my efforts into creating my new works. I will keep working hard, and I thank everyone. As to whether I go to Sweden to receive the prize, I will wait for word from the organisers about arrangements." 
"AT HOME WITH HIS DAD" 

Peter Englund, head of the Swedish Academy, said Mo was "at home with his dad" when he was told of the award. "He said he was overjoyed and terrified," Englund told Swedish television. "He has such a damn unique way of writing. If you read half a page of Mo Yan you immediately recognise it as him." The award citation said Mo used a mixture of fantasy and reality, historical and social perspectives to create a world which was reminiscent of the writings of William Faulkner and Gabriel Garcia Marquez. 

At the same time, he found a "departure point in old Chinese literature and in oral tradition", the Academy said. Englund said Mo offers "a unique insight into a unique world in a quite unique manner." His style is "a fountain of words and stories and stories within stories, then stories within the stories within the stories and so on. He's mesmerising," Englund told Reuters television. Mo is best known in the West for "Red Sorghum", which portrayed the hardships endured by farmers in the early years of communist rule and was made in a film directed by Zhang Yimou. His books also include "Big Breasts and Wide Hips" and "The Republic of Wine". 

"My works are Chinese literature, which is part of world literature. They show the life of Chinese people as well as the country's unique culture and folk customs," Mo told reporters in his hometown, Xinhua news agency reported. The last Chinese-born winner was Gao Xingjian in 2000, although he was living in France by that time and had taken French citizenship. His Nobel was not celebrated by the Chinese government.  
CHINA HAS "WAITED TOO LONG" 
Communist Party mouthpiece the People's Daily praised the win in a commentary on its website (www.people.com.cn). "This is the first Chinese writer who has won the Nobel Prize for Literature. Chinese writers have waited too long, the Chinese people have waited too long," it wrote. Mo, a vice chairman of the government-backed Chinese Writers' Association, said he had nothing to say about Liu Xiaobo, the jailed dissident who won the Nobel Peace Prize in 2010 and whose name has been banned from public discussion in China.
"His winning won't be of any help for Liu Xiaobo, unless Mo Yan expresses his concern for him," said Ai Weiwei. "But Mo Yan has stated in the past that he has nothing to say about Liu Xiaobo. I think the Nobel organisers have removed themselves from reality by awarding this prize. I really don't understand it." Beijing-based writer Mo Zhixu said Mo Yan, who once copied out by hand a speech by Chairman Mao Zedong for a commemorative book, "doesn't have any independent personality." 
Yu Shicun, a Beijing-based essayist and literary critic, said Mo Yan was a puzzling choice for the prize. "I don't think this makes sense," said Yu in a telephone interview. "His works are from the 1980s, when he was influenced by Latin American literature. I don't think he's created his own things. We don't see him as an innovator in Chinese literature." On the streets of Beijing, there was pride in Mo's achievement.
"I think this is an unprecedented breakthrough, because before this they spoke of Chinese nationals getting the Nobel prize, but it was only the peace prize, never the others such as the literature, the physics and chemistry prizes," said Xu Jiebiao, 28-year-old IT consultant. "So a Chinese getting the Nobel prize for literature will increase the national pride." The literature prize is the fourth of this year's crop of prizes, which were established in the will of Swedish dynamite inventor Alfred Nobel and awarded for the first time in 1901. The writer, who was in the People's Liberation Army before progressing to academia, was one of the favourites to win the award this year, according to British bookmaker Ladbrokes, along with Japanese author Haruki Murakami.

(Additional reporting by Johan Ahlander, Simon Johnson, Anna Ringstrom, Niklas Pollard, Sui-Lee Wee, Ben Blanchard and Lucy Hornby; Writing by Giles Elgood; Editing by Peter Millership)
http://in.reuters.com/article/2012/10/11/nobel-prize-literature-mo-yan-china-idINDEE89A08M20121011

EURO RECESSION ?? STUDY SAYS...

11 OCT, 2012, 09.07PM IST, AFP 

German institutes warn of recession, halve 2013 forecast

BERLIN: Germany's leading economic think tanks warned on Thursday there was a "great danger" that Europe's top economy could fall into recession, as they slashed their growth forecasts for next year in half. The four institutes -- Ifo in Munich, IfW in Kiel, IW in Halle and RWI in Essen -- also lashed out at theEuropean Central Bank, saying its latest anti-crisis measures risked fuelling inflation in the 17 countries that share the euro.

"The euro crisis is negatively impacting economic activity in Germany," the institutes wrote in their joint twice-yearly forecasts, published here on Thursday. "Should the situation in the eurozone continue to deteriorate, this will also impact the German economy. Over the forecasting period as a whole the downside risks prevail and there is a great danger that Germanywill fall into a recession," they warned.

While Germany clocked up growth of 0.5 per cent in the first quarter and 0.3 per cent in the second quarter, "there are currently a large number of signs that overall economic expansion will weaken towards the end of the year," they wrote. As a result, gross domestic product ( GDP) was projected to grow by 0.8 per cent overall this year and by 1.0 per cent next year. That marked a downgrade from the institutes' previous spring forecasts when they had been pencilling in growth of 0.9 per cent for this year and 2.0 per cent for next year.

Furthermore, the latest projections were based on the assumption that the situation in the euro area, currently grappling with its worst-ever crisis, would stabilise. If it did not then Germany, which has held up much better to the long-running crisis than its eurozone partners, could find its economy going backwards, they said.

Chancellor Angela Merkel acknowledged that after two "very good" years of growth, that this year would be "weaker." "If you believe the forecasts -- I cannot be more precise -- we will have maybe 0.8 per cent, 0.9 per cent, around one per cent," Merkel told reporters after meeting Hungarian Prime Minister Viktor Orban.
The German government publishes its twice-yearly forecasts next week.

http://economictimes.indiatimes.com/news/international-business/german-institutes-warn-of-recession-halve-2013-forecast/articleshow

India’s exports DROP by 10.78 %

NEW DELHI, OCT 11: 

India’s exports have dipped 10.78 per cent to $23.69 billion in September 2012 compared with $26.56 billion in the same period a year ago. Imports grew by five per cent to $41.77 billion from $39.75 billion in September 2011, resulting in a trade deficit of $18 billion for the month.

In the April-September period, exports fell by 6.79 per cent to $143.6 billion from $154.1 billion in the same period last year.During this period, imports contracted by 4.36 per cent to $232.92 billion. Trade deficit during the period stood at $89.25 billion. Oil imports during September increased 30.74 per cent to $14.09 billion from $10.77 billion in the corresponding period last year. Oil imports during April-September 2012-13 grew by 6.78 per cent to $80.78 billion.

Non-oil imports during the month under review dipped 4.46 per cent to $27.68 billion. During the first six months of the fiscal, the imports contracted by 9.38 per cent to $152.14 billion. Meanwhile, the Federation of Indian Export Organisations (FIEO) has said that the fall in exports for the April-September period is in line with global demand. Reacting to the trade data released by the Government, M. Rafeeque Ahmed, President, FIEO, said even the WTO has revised its forecast downwards for global trade for 2012 from 3.5 per cent earlier to 2.7 per cent.

The FIEO chief also said that the cost of credit is still a cause of concern for the export sector and a general reduction in the interest rate would benefit manufacturing as well as exports. He urged the Government to consider lowering of interest rates as top priority to give a boost to exports.

http://www.thehindubusinessline.com/industry-and-economy/economy/article3987486.ece?homepage=true&ref=wl_home

Facebook 'lied' -IPO HYPE- FALSE CLAIMS!!!!!!!!!!

Facebook 'lied' about number of users

AGENCIES

Posted: Thursday, Oct 11, 2012 at 1607 hrs IST

Social networking site Facebook provided US Securities and Exchange Commission officials inaccurate and inflated estimates of the number of its users and ultimately its worth a week before the company''s botched Initial Public Offering, it has emerged.

Facebook did not have accurate figures for the number of smartphone users who use its application and intentionally held back the real, significantly lower figures, until only a week before the 104 billion dollars IPO on May 18th.

The information has emerged after 12 letters dating from February 1 to May 17, were published on the SEC''s website 20 days after the company''s disastrous IPO, the Daily Mail reports.

According to the paper, the contentious exchanges were over Facebook’s apparent failure to disclose the exact figures for mobile phone user growth.

In the initial IPO filing from February 1st, the company said smartphone usage of Facebook increased around the world and numbered 425 million ''monthly active users''in December 2011.

When asked by the SEC to locate geographically its users it said that it couldn''t do so reliably, because for instance Facebook counted most BlackBerry owners as Canadian because their servers are based in Canada.

According to the paper, this prompted the SEC to question whether Facebook actually had 845 million individual users at the start of 2012, which the firm replied they believed was ''reasonably accurate.''

http://www.financialexpress.com/news/facebook-lied-about-number-of-users/1015336/2

ALLEGATIONS -'Kejriwal' index & STOCKS TUMBLE!!!

Now traders track 'Kejriwal' index

Kejriwal had said there was information that a lot of people close to politicians had invested in BPTP, Indiabulls and GMR group

Palak Shah / Mumbai Oct 10, 2012, 19:27 IST Anti corruption activist turned politician Arvind Kejriwal has emerged as the 'new theme' for stock market traders. They are going short on shares of companies, which Kejriwal has, or is, likely to target. After DLF, the share price of Indiabulls Group firms and GMR Infrastructure came under selling pressure today. Kejwiral had hinted yesterday he was preparing a list of nexus between politicians and these companies. The share price of Indiabulls group firms fell between 4-10% and GMR Infrastructure crashed by 9.2% at Rs 23.2. DLF too continued its slide and fell 5.4% to close at Rs 212 today. Kejriwal on Tuesday said that there was information that a lot of people close to politicians had invested in BPTP, Indiabulls and GMR group “Traders are closely following Kejriwal. He has built a reputation in stock market after his allegations on Robert Vadra and DLF. The company and Vadra till now have not been able to counter these allegations effectively,” said Kishor Ostwal managing director of Mumbai based CNI Global Research. Ostwal, however, is of the view that the sharp fall in share prices of these companies was a knee jerk reaction and they would re-bound when markets improve. The broader index Sensex of the Bombay Stock Exchange and Nifty of the National Stock Exchange fell 1.21 and 0.92% respectively today. Investment Advisor S P Tulsian said, corporate governance issues have been a theme for stock market traders for the past many months now. “Kejriwal's allegation has revived concerns on these companies. So traders now fear of litigation against these companies,” said Tulsian. Stock market players have given thumbs down to all those companies where Canadian research firm Veritas in the past raised red flags. They include, DLF, Indiabulls, Kingfisher Airlines and Reliance Communications. http://www.businessstandard.com/india/news/now-traders-track-/kejriwal/-index/190623/on

POLARIS - VIOLATING REGULATIONS

Polaris chief Arun Jain barred from market for 2 years

OUR BUREAU http://www.thehindubusinessline.com/markets/stock-markets/article3981365.ece?homepage=true   MUMBAI, OCT 9: 

SEBI has prohibited Arun Jain, Chairman and Managing Director, Polaris Software Lab, from transacting in securities for two years. This is for violating insider trading regulations. SEBI found that Polaris Holding Private Limited (PHPL), a promoter group company, had sold 15,080 shares of Polaris Software between August 23, 2000 and September 19, 2000 through Chennai-based broker Allsec Securities.

SEBI found that Jain had, at the time, been privy to unpublished price-sensitive information that Polaris Software had called off its proposed acquisition of a US-based company, Data Inc. Though the acquisition was called off at end August, the information was not given to the bourses until September 30, 2000. SEBI found that the trading (in 15,080 shares) was motivated on the basis of the price-sensitive information in Jain’s possession, and he was not able to prove otherwise.

After the information was made public, the share price of Polaris Software, which had closed at Rs 595 on September 29, fell to Rs 390 on October 23, 2000. This case was settled through the consent mechanism (without admission or denial of guilt and on payment of consent charges of Rs 7 lakh) on July 21, 2008.

However, SEBI had, in 2005, considered proceeding against Jain under Sections 11 and 11B of the SEBI Act (that empowers the regulator to issue directions in the interest of investors). The order comes into effect immediately.

raghavendrarao.k@thehindu.co.in

NIFTY FUTURE DIRECTION....

The markets are built with good long open positions as the run-up in the markets are quite strong. The Nifty is strongly holding above 5650 and trading near to the highs at 5800. The Friday freak trade has given good opportunity to bears to crush the markets down but that has not materialized.

The bear can have edge only below 5650 can bulls also may allow this run upto 5480-5440 level. The results of this Sep-12 quarter will decide the future course of Nifty, as well the elections in USA will also add and our local election in Dec will add more to the volatility.   

The markets are right now in strong BULL grip because many offerings are being tabled by the center  There is life only when govt. continues to open for reforms and market friendly policies. The political uncertainty and more scams will dampen the run that was initiated with the opening of mores reforms. As the campaign for Gujarat elections coming and the new headlines are filled with allegations and counter allegations opening for more SCAMs could become a road block for NIFTY to cross 5935.

The stocks are holding above the support levels. As the weakest of yesterday stock like BHEL is now trading above 260 level. As I mentioned in my previous postings that the markets will be in FULL BULL grip once this stock trades above 232 level. Now the stock has a potential to go upto 293 level. In case BHEL trades below 241-239 level, unwind all the long positions and 50% of the investment holdings.

The Nifty took the recent upward journey from 4850 levels from June-12 where as Jan-12 low is at 4590 level. The first leg took a steep rise from 4600 level 5620 level. It again fell from that level to 4850 level, a low but again took the up move to this 5815 level. The journey may not take in jumps but will creep up.

The banks are for RBI rate cut at the review on 30^th Sep-12. The ICICI bank will touch Rs 1015-18, may resume up-move. 

Transgene Biotek Ltd.

Business Standard news coverage on Transgene Biotek Ltd. Transgene in pact with Dr Reddy's for obesity drug

Press Trust of India / Mumbai Jan 07, 2010, 20:42 IST

Biotechnology firm Transgene Biotek today said it has signed a pact with Dr Reddy's Lab to manufacture a drug named, Orlistat used in treating obesity.

The company has entered into a licensing and technology transfer agreement with Dr Reddy's Laboratories for the out-licensing of a technology to manufacture Orlistat, Transgene Biotek said in a filing to the Bombay Stock Exchange.

Under the terms of the compact, effective in due course of time, Dr Reddy's would gain worldwide rights to a unique technology to produce and commercialise Orlistat active pharmaceutical ingredients (API) which is developed exclusively by Transgene Biotek.

"The new alliance combines Transgene Biotek's technology with Dr Reddy's manufacturing skills, and extensive global sales and marketing capabilities" the company said.

Transgene Biotek would receive an upfront payments for certain commercial milestone, and royalties on the sale of Orlistat API in all countries worldwide.

Orlistat is used in the treatment of obesity, including weight loss and weight maintenance.

Transgene Biotek comes up with novel drug for colon cancer

BS Reporter / Mumbai Apr 26, 2010, 15:47 IST

Transgene Biotek has expanded its cancer drug pipeline by coming out with a novel drug for colon cancer. The drug is based on Transgene's proprietary technology platform using a humanised monoclonal antibody. Transgene has developed monoclonal antibodies, which efficiently kill colon cancer cells without harming normal cells.

According to a report from Economic Intelligence Unit, by 2020, 9.7 per cent of new cases of cancer in the world will be from colorectal cancer making it the third highest incidence cancer after lung and breast. Cancer accounted for 7.9 million deaths in 2007, about 70 per cent in low and middle income countries

http://www.businessstandard.com/india/news/transgene-biotek-comes-upnovel-drug-for-colon-cancer/92428/on

Transgene Biotek to raise up to Rs 500 cr via markets Press Trust of India / New Delhi Oct 01, 2010, 14:06 IST

Biotechnology firm Transgene Biotek today said it will raise up to Rs 500 crore through various domestic and international fund raising instruments.

The company's board, at its meeting held on September 30, has decided to raise Rs 500 crore through various domestic and international fund raising instruments, including foreign currency convertible bonds (FCCBs), global depository receipts (GDRs) and American depository receipts (ADRs), Transgene Biotek said in a filing to Bombay Stock Exchange (BSE).

The fund raising would be subject to the approval of shareholders, it added.
     
The board also decided to increase the authorised capital of the company to Rs 75 crore from the present Rs 20 crore.
     
Shares of Transgene Biotek were today trading at Rs 59 on the BSE in late afternoon trade, up 3.69 per cent from its previous close.

Transgene in the red

BS Reporter / Hyderabad May 18, 2011, 00:00 IST

Transgene Biotek Ltd reported a net loss of Rs 2.85 lakh for the three months ended March 31, 2011, mainly due to Rs 51 lakh additional expenditure on account of currency fluctuation. Sales revenues were Rs 7.23 crore, while expenditure was Rs 6.58 crore. The profit and revenues in the same quarter of 2009-10 were Rs 15.55 lakh and Rs 1.1 crore respectively.

For the full year of 2010-11, the company registered a net profit of Rs 14.84 lakh, a decline of 61 per cent from Rs 38.16 lakh in the previous fiscal. Revenues during the year grew nearly three-fold to Rs 10 crore (Rs 3.98 crore). The bulk drug division accounted for 70 per cent of its annual revenues, with the rest coming from diagnostic services.

Transgene sells tech to TSS Export

BS Reporter / Chennai/ Hyderabad Nov 24, 2011, 00:00 IST

City-based Transgene Biotek Limited, a biotechnology company, has announced the sale of technology for recombinant human erythropoietin (rh-EPO) to TSS Export GmbH FZE, one of the group companies of Germany-based TSS group, for $5 million (Rs 26 crore).

The technology transfer and the sale of this technology is expected to be completed within 5-6 months. KK Rao, managing director of Transgene Biotek, said, “This transaction fulfils the pledge we made earlier this year to focus on revenue generation whilst monetising the sale of under utilised bio-generic drug assets, those developed by the company during the last 7-8 years, but which we now feel do not fit into our new agenda for sustained growth.”

Transgene Biotek recently commenced commercial manufacturing of DHA (Docosahexaenoic acid), an omega-3 fatty acid, which has seen explosive growth in the nutraceuticals and health supplements market.

The company is in the process of expanding its in-house infrastructure to augment production capacities for DHA and other APIs, and hopes to start commercial manufacturing of its second API (active pharmaceutical ingredient), called Tacrolimus. It is in discussion with a number of manufacturers in Europe and North America for strategic partnerships to manufacture and distribute these products, the release said.

Transgene Biotek joins hands with FII, to delist shares

The company is in the process of sending the postal ballot to all its shareholders seeking their approval

Press Trust of India / Mumbai Oct 07, 2012, 12:03 IST

Pharmaceutical company Transgene Biotek has announced that Mauritius-based Stream Value Fund has agreed to join hands on a long-term basis to support its drug discovery activity, in return for equity participation and certain rewards on drug licensing or sale.

Last week the Hyderabad-based company said it is offloading undisclosed quantum of stake to a foreign institutional investor as a result of which the company's shares will be delisted from domestic stock exchanges.

The company is in the process of sending the postal ballot to all its shareholders seeking their approval.

If delisting is successful, the management of Transgene said, it will enjoy enhanced flexibility without requirement to comply with a long list of regulators' rules and regulations which often hinder efforts to speed up the drug development process.

Transgene has a pipeline of more than six molecules in development - both novel bio-technology and bio-generic drugs, the release said.

The two recent animal studies on its oral insulin project have yielded exceptional results that give rise to confidence that Transgene will soon be in strategic partnership with a large pharma company, the company said.

Transgene Biotek to delist from Indian stock exchanges

Apart from Bombay Stock Exchange, the company is also listed on Luxembourg Stock Exchange

Press Trust of India / New Delhi Sep 04, 2012, 14:38 IST

Biotechnology firm Transgene Biotek today said that its board of directors has decided to delist its shares from Indian stock exchanges.

"The board of directors of the company at its meeting held on September 3, 2012, inter alia, has decided to delist the equity shares of the company from the all the recognised Indian Stock Exchanges," Transgene Biotek said in a filing to BSE.

Apart from Bombay Stock Exchange, the company is also listed on Luxembourg Stock Exchange.

Transgene Biotek said its proposal to delist is subject to approval of shareholders of the company and statutory approvals.

The company, however, did not assign any reason for the delisting.

Shares of Transgene Biotek were today trading at Rs 11.25 per scrip in the afternoon trade on BSE, up 4.85% from its previous close.

 Founded in 1991 by Koteswara Rao, the Hyderabad-based company is among the first biotechnology companies in India.

It has products in the therapeutic areas of cancer, auto immunity and other bio-generics apart from drug delivery devices for ailments such as diabetes and HIV infection.

FII to pick stake in Transgene Biotek

As a result of which the company's shares will be delisted from domestic stock exchanges

Press Trust of India / New Delhi Sep 10, 2012, 17:52 IST

Transgene Biotek today said it is offloading undisclosed quantum of stake in the company to a foreign institutional investor as a result of which the company's shares will be delisted from domestic stock exchanges.

Last week the company had announced that its board has decided to delist its equity shares from all the recognised Indian Stock Exchanges.

"Our announcement in the recent days has been triggered by an approach by a SEBI-registered FII to join hands with Transgene's promoters on a long term basis. This is to support company's drug discovery activity in exchange for equity participation and certain rewards on drug licensing or sale," Transgene Biotek said in a filing to BSE.

Without disclosing details such as the name of the FII or the quantum of stake to be offloaded, the company said one of the preconditions set by the investor that has approached it to support drug discovery activity was delisting.

"The investor shall join the promoter group and shall have a seat on the board, both events only, after the completion of delisting process," Transgene Biotek Managing Director KK Rao told PTI in an emailed response.

He further said the investor is backing the promoters in the delisting process for acquisition of the listed shares.

Transgene Biotek 's board has approved an exit price not lower than the floor price of Rs 25 per share.

In the event of the delisting being successful, the new management of Transgene will enjoy enhanced flexibility. It may at some point choose to increase exposure to western markets (besides Luxembourg), the company said.

As per latest data available on BSE, till the quarter ended June 2012, the promoters held 36.83% stake in the company. Out of a total public shareholding of 63.17%, FIIs held 6.99% stake.

The company further said that the lower market value of the company's stock despite progress of its product pipeline was also one of the reasons behind the proposed delisting.

The two recent animal studies on the company's oral insulin project for diabetes have yielded exceptional results that gives rise to the confidence that soon it would be in strategic partnership with a large pharma firm, it said.

"Yet we continue to see erosion in company value accompanied by perceived investor pessimism, and this has led to the approval by the board for de listing," Transgene Biotek said.

Shares of Transgene Biotek today closed at Rs 11.41 a scrip on the BSE, up a steep 4.97% from its previous close.

TRANSGENEBIOTEK- potential untapped....

I have been recommending this stock for INVESTMENT buying ever since I saw the growth in the sales from mere 0.5 cr to 5 cr in a quarter. This has been happening for the last 4-5 quarters. I am blindly supporting the stock from Rs 26-30 levels but the stock fell relentlessly from there to Rs 8-9 range. Where as the products pipeline has the opportunity to out perform is not happening in the bourses. The equity has grossly bloated from 15 cr to 65 cr with in two years (2010-12).  

BSE- Notices for refernece:

Notice No	20110505-20	Notice Date	05 May 2011
Category	Company related	Segment	Equity
Subject	Listing of new securities of Transgene Biotek Ltd.
Content
Trading members of the Exchange are hereby informed that the under mentioned securities of Transgene Biotek Ltd, (Scrip Code: 526139, ISIN No INE773D01018) are listed and admitted for trading on the Exchange with effect from Friday, May 06, 2011. Security Details 2,50,00,000 equity shares of Rs.10/- each issued underlying  Global Depository Receipts (1GDR = 10 Equity Shares) of the Company. These shares are ranking pari passu with the existing equity shares of the company. Date of Allotment 22.02.2011 Dist. Nos. 15770001 to 40770000 Price per GDR US $ 9.2 In case trading members require any clarification on the subject matter of the notice, they may please contact the undersigned on Tel. Nos. 022 2272 8899. (Pavan V. Naik) Deputy Manager - Dept. of Corporate Services

INDIA-Mutual funds mobilise over Rs 1.5 trillion...

7 OCT, 2012, 11.07AM IST, PTI 

Mutual funds mobilise over Rs 1.5 trillion from investors in 2012-13

NEW DELHI: Investors have put in more than Rs 1.5 lakh crore in various mutual funds in the first five months of the current fiscal, as against cumulative net outflow of over Rs 70,000 crore in the previous two financial years. 
A revival in the stock market and various reform measures being undertaken by the government and regulator Sebi may help the mutual fund industrymobilise further funds in the coming months, say experts. 

As per the latest data available with Sebi, there was a net inflow of Rs 1,53,781 crore between April and August 2012, as against total fund mobilisation of Rs 1.24 lakh crore in the corresponding period of last fiscal 2011-12.
However, there was a net outflow of over Rs 20,000 in the entire 2011-12, while a net amount of nearly Rs 50,000 crore moved out of the mutual funds' kitty during the previous fiscal 2010-11. 
Prior to that, mutual funds had mobilised Rs 83,000 crore in 2009-10, Sebi data shows. At gross level, the mutual funds mobilised a total amount of over Rs 30.4 lakh crore in the first five months of the current fiscal, while there were redemption worth Rs 28.9 lakh crore as well -- resulting into net inflow of about Rs 1.54 lakh crore. This significant level of fund mobilisation has also helped the total asset under management of mutual funds to grow to Rs 7.5 lakh crore as on August 31, 2012. Mutual funds pool together money from many investors and invest it on behalf of the group, in accordance with a stated set of objectives. 

Market analysts expect the trend to pick up in the coming weeks, as the government and Sebi have expressed their intention to revive equity culture in the country and help channelise the household income into stocks, mutual funds and insurance sectors, rather than in idle assets like gold. After gaining one per cent in August, strong FII inflows had pushed up the BSE's benchmark Sensex by 1,382 points or eight per cent last month. 

"The current market conditions and wide-ranging reforms announced by Sebi to re-energise the mutual funds ndustry would help the sector to channelise funds in the equity market," Sudip Bandhopadhyay MD and CEO at Destimoney Securities said. He also said the stock market and mutual funds stand to attract more investments from the Rajiv Gandhi Equity Savings Scheme, but it could be initially complicated for first-time investors. 
Another analyst Wellindia President (Research) Vivek Negi said," a number of steps taken by the Sebi for the benefit of mutual fund industry and revival in the stock market on the back of various economic reforms measures undertaken by the government are expected to help the mutual fund industry to invest in the equity market." 

However, investment by mutual funds in equity schemes continued to decline for the second consecutive month, although at a slower pace.

http://economictimes.indiatimes.com/personal-finance/mutual-funds/mf-news/mutual-funds-mobilise-over-rs-1-5-trillion-from-investors-in-2012-13/articleshow/16708025.cms