Need I remind you that global food prices hit new highs last year, causing protests in North Africa and the Middle East? Experts in the industry predict this is only the start of a long-term trend. With China and the developing world growing richer, demand for food is accelerating. And as food prices rise, so will demand for fertilizer as the world struggles to meet demand.
I expect this stock could see its earnings rise substantially. Just as important, it is a potential takeover candidate. You may recall that BHP Billiton (Australia) has been recently foiled in its efforts to make new acquisitions in this resource. That leaves it on the hunt. And this stock would make a great addition to BHP's business.
BHP Billiton is a global mining and oil and gas company headquartered in Melbourne, Australia and with a major management office in London.
As per the above efforts and discussion go with Fertilizer stocks for this year which may helps to build up the strong portfolio with handsome returns, Hold these stocks which are good for investment are :- NFL, RCF, Chambal Fert., Tata Chemical, Fertilizers & Chemicals Travancore Ltd, Gujarat State Fertilizers & Chemicals Ltd.
Reserve Bank of India (RBI) Governor Duvvuri Subbarao hiked the repurchase or repo rate to 6.5 percent from 6.25 percent and reverse repo rate to 5.5 percent from 5.25 percent. Other rates like cash reserve ratio and statutory liquidity ratio remained unaltered.
The key policy rates were tinkered for the seventh time since January last year as part of the third-quarterly review of the central bank's monetary policy by the governor at the headquarters on Mint Road in downtowm Mumbai.
The repo rate, often referred to as the short term lending rate, is the interest charged by the central bank on borrowings by commercial banks. A hike in the rates makes cost of borrowing costlier for the commercial banks.
The reverse repo rate, referred to as the short term borrowing rate, is the rate at which the central bank borrows money from commercial banks. A hike in this rate makes it more lucrative for banks to park funds with the RBI.
The cash reserve ratio and statutory liquidity ratio determines the amounts banks have to retain in liquid assets, gold and government bonds against deposits, and form a part of traditional instruments that help in checking liquidity in the system.
The central bank also revised upward its inflation forecast sharply to 7 percent by the end of this fiscal, from 5.5 percent earlier, while the projection on growth has been retained at 8.5 percent with an upward bias.
"There have been some transitory supply shocks as reflected in the sharp increase in vegetable prices. In addition, petroleum and aviation turbine fuel prices were raised in January which will add 9 basis points to wholesale price inflation," Subbarao said.
"With the risks to growth in 2010-11 being mainly on the upside, the baseline projection of real gross domestic product (GDP) growth is retained at 8.5 percent as set out in the second quarter review of monetary policy of July 2010, but with an upside bias."
The governor said that the policy actions Tuesday will rein in the rising inflationary expectations, which may aggravate due to transitory nature of food prices, but yet be moderate enough not to disrupt growth.
The central bank also warned the federal government on its fiscal stand. "Any slippage in the fiscal consolidation process at this stage may render the process of inflation management even harder," the bank said.
The RBI acted with sharp measures mainly to tame prices, which has seen India's annual food inflation shoot up to a 52-week high of 18.32 percent for the week ended Dec 25, before falling slightly to 15.52 percent for the week ended Jan 8.
Loans for automobiles, homes and corporate sector could go up as banks will look to pass on the interest burden to consumers. Leading bankers have already forecast a hike in the lending rates in the near term, taking into account a hike in key rates.
Adopting an aggressive monetary policy stand since January last year, the Reserve Bank has hiked the interest rate six times till December, with the short-term lending rates going up 150 basis points and short-term borrowing rates dearer by 200 basis points.
Industry, which saw its factory output dip to an 18-month low in November, was already worried since the annual wholesale price inflation in non-food articles that primarily reflects the cost of raw materials was ruling at 23.07 percent for week ended Jan 8.
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Software major Wipro Ltd Friday said revenue from its global IT business for the Jan-March fourth quarter of this fiscal would be $1.4 billion, projecting a sequential growth of four percent over the Oct-Dec third quarter.
"We expect revenues from our IT services business to be about $1.4 billion, a sequential growth of four percent," Wipro chief financial officer Suresh Senapaty told reporters while announcing the company's performance in the third quarter of this fiscal.
As the flagship division of the IT bellwether, the global IT services and products division achieved its revenue guidance of $1.3 billion for the third quarter, registering year-on-year (YoY) growth of 15 percent and 5.6 percent sequentially from the second quarter of $1.2 billion.
In rupee terms, the revenue is Rs.5,949 crore (Rs.59.5 billion).
The operating margins, however, remained sequentially flat at 22.2 percent and 1.5 percent lower YoY.
"The operating margins for IT services business was flat despite lower working days and drop in utilisaiton," Senapty said on the occasion.
Recovering from the tech meltdown of the previous fiscal (2009-10), the company posted net profit of Rs.13.2 billion for the third quarter, registering 10 percent YoY growth and revenue of Rs.7,829 crore (Rs.78.3 billion), an increase of 12 percent YoY.
Under the International Financial Regulatory System (IFRS), net income is $294 million and revenue $1.75 billion.
The IT services business added 36 new clients and 3,591 employees during the quarter, taking the total headcount to 119,491 at the end of December.
The company also announced a change of guard at the top, with eco energy division chief executive T.K. Kurien taking over as the new chief executive of the IT business from February 1 in place of the joint chief executives Girish Paranjpe and Suresh Vaswani, who have decided to step down and leave the organisation March 31.
"The joint chief executive structure was one of the key factors that successfully helped us navigate the worst economic crisis of our times," Wipro chairman Azim Premji said in a statement here.
Paranjpe and Vaswani have been associated with the company over the last two decades and have been an integral part of the leadership team.
"There is a change in environment, there is a need for a simpler organization structure. Kurien's track record with customers, passion for excellence, coupled with strategic thinking and rigour in execution make him uniquely positioned to lead Wipro through the next phase of growth," Premji observed.
India's industrial output fell to an 18-month low in November with production growing at a slow 2.7 percent, according to official data released Wednesday.
Slowing industrial production will put the government and the Reserve Bank of India in a fix when it comes to tackling inflation as hiking key interest rates was one of the foremost measures employed by the central bank last year.
The index of industrial production (IIP) fell to 2.7 percent in November, the slowest growth since May 2009.
The IIP for October was also revised upwards from the 10.8 percent to 11.3 percent.
The sharpest fall came in consumer non-durables, which showed a negative output of 6 percent compared to a growth of 36 percent in the like month in 2010.
Manufacturing, the biggest constituent in the IIP, grew at 2.3 percent against 12.3 percent in November of last year.
Rampant selling across the Indian equities markets Monday resulted in a benchmark index getting clobbered and ending trade 527 points lower with analysts attributing the down-trend to off-loading by foreign investors.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 19,714.42 points, closed at 19,164.77 points (provisional), down 527.04 points or 2.68 percent from its previous close at 19,691.81 points.
At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty ended at 5,755.65 points, down 2.52 percent or 148.95 points.
Broader markets were also in the negative, with the BSE midcap index ending 2.44 percent lower and the BSE smallcap index closing 2.96 percent down.
Capital goods, realty and oil and gas stocks were among the major losing sectors on the markets. All 13 sectoral indices on the BSE closed in the red.
Fortis Group's overseas arm Fortis Global Healthcare will focus on Asia, Australia and the Middle East as it eyes "a lot of acquisition" this year, its promoter Malvinder Singh has said.
"Fortis Global will go for a lot of acquisitions in 2011. Our focus is on Asia, Australia and the Middle East," Singh told mediapersons after the opening of the group's new hospital here Sunday.
"(Acquisition) Opportunities lie in the Asian countries… China is a potential market," he said.
Malvinder Singh said the company was now evaluating the pros and cons of getting listed on the stock exchange in the near future.
Malvinder Singh owns Fortis Global jointly with his younger brother Shivinder Singh.
Asked about the country's healthcare sector, he said supply was far short of the demand.
The company would continue to stress on capacity expansion in the country as it strives to be a pan-India player.
"We will set up eight to 10 new hospitals in the next 24 months in India," he said.
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Rohit Saxena
Phone No: 09891265905
Mail Id: rohit_9sep@indiatimes.com
Jindal Saw Tuesday said that it has inked a mining lease agreement with the Rajasthan government for iron ore mines in the state.
"The lease is for a period of 30 years," the company said in a regulatory filing.
The total area under the lease is 1556.78 hectares. Based on initial estimates, the mines have over 180 million tonnes of reserves of various category of iron ores.
The company also said that it is setting up a beneficiation plant to produce over 6,000 tonnes of concrete per day and other required infrastructure for treatment of the extracted material.
The ore will be used initially for Jindal Saw's in-house requirements for production of ductile iron pipes and subsequently for value added products in terms of the lease agreement.
"The management of Jindal Saw Ltd believes that such acquisition of mines would result in significant improvement in the overall performance of the company, over a period of time," the company said
Paraj industries Cmp 88Rs today this stock is 4.5% up, and as per the recommended price (75Rs) this stock is given 17% return in three Months....Cheers.
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Rohit Saxena
Phone No: 09891265905
Mail Id: rohit_9sep@indiatimes.com
