50 Stocks out of Futures & Options Segment

SEBI has initiated changes in Eligibility criteria for inclusion of stocks in future and options segment.

Now a Stock has to fulfill following criteria to be included in the F&O Segment

  • The stock shall be chosen from amongst the top 500 stocks in terms of average daily market capitalization and average daily traded value in the previous six months on a rolling basis.


  • The stock’s median quarter sigma order size over the last six months shall be not less than Rs. 5 lakhs.


  • The market wide position limit (MWPL) in the stock shall not be less than Rs. 100 crores.

A stock will be excluded from F&O on the basis of following criteria

  • The Market wide position limit in the stock falls below Rs. 60 Crores and if Stock’s median quarter-sigma order size over the last six months is less than Rs. 2 Lacs for a period of continuous three months.

Further, once the stock is excluded from the F&O list, it shall not be considered for re-inclusion for a period of one year.

Based on the above criteria, the stock exchanges have issued a circular effective from 4th May,2009 excluding 50 stocks from F&O Segments. The existing unexpired contracts for the month of and April, May and June 2009 would continue to be available for trading till their respective expiry and new strikes would also be introduced in these existing contract months.

Prominent stocks excluded from F&O segment include 3i Infotech, Alok Industries, Aptech Limited, Gitanjali Gems, Jet Airways, NDTV, Rajesh Exports, Karnataka Bank, Amtek Auto, GNFC, Thermax, Hindustan Oil Exploration, RIIL and Wockhardt

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Q4 Results Update

TCS Q4 Net down 2.1% Revenues down 1.5%, declares 1:1 Bonus

tata_logo TCS has reported a Full year Revenue of 27812 Crores and Net Profit of 5256 Crores. The profits were up 4.5 % and Sales were up 21.6% against last year. The Board has also approved issue of 1Bonus share for each share held in the company. The company has also declared a final dividend of Rs. 5 per share. The total employee strength of the company is 143,761. The forex losses stood at Rs. 781 Crores. The Company had a Cash of Rs 4300 Crores on its Balance Sheet as of 31st March,2009.  The EPS for FY09 stood at Rs. 52.85. The TCS results look good considering the fact that the company had a hit of 781 Crores on account of forex losses.

TCS’ full services strategy significantly contributed to overall company performance.  BPO and Infrastructure services grew by more than 40% compared to FY08. Demand for core IT and ADM services remained strong, with more than 50% of the large deals in FY09 coming in this space. Engineering services grew through FY09, though ongoing pressure in the US Auto and Hi Tech industry could adversely affect demand in FY10.

TCS Result Highlights

Sesa Goa Q4 Net profit down 33%

sesa Company posted Q4 Revenues of 1430 Crores Vs 1681 last year. Net profit was down at 548 crores Vs 812 crores last year. For the Full year, the company posted Revenues of 4926 Crores Vs. 3766 Crores last year and net Profit at 1988 Crores Vs 1542 Crores. The company’s FY09 EPS stood at Rs. 25.26

Sesa Goa Result Highlights

Axis Bank net zooms 61% Interest Income up 25%

logo-axis Good set of numbers posted by Axis Bank. Net profit for Q4 zoomed 61 % to Rs. 581 Crores. Net Interest income shot up 25% to 1032 .6 Crores while the Fee based Income grew 42% to touch 664 Crores. Demand deposits have grown 26.52% yoy, and constitute 43% of the total deposits, with Savings Bank deposits having grown 29% yoy and Current Account deposits having grown 24% yoy. The Net NPAs, as a proportion of net customer assets, have reduced to 0.35% from 0.36% at the end of the preceding year and declined from 0.39% at the end of December’08. The Bank’s Capital Adequacy Ratio was 13.69% as at end March’09 as compared to 13.73% as at end March’08.

Bank’s FY09 EPS stood at Rs. 50.27 against 31.31 last year. The Board has proposed 100% dividend.

Axis Bank Result Highlights

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Infosys Results & Guidance indicate tough road ahead

Infosys has declared the Q4 Results.

  • Q4 FY09 net profit dipped 1.7% at Rs 1,613 crore as against Rs 1,641 crore on quarter-on-quarter basis.
  • Revenue declined by 2.61% at Rs 5,635 crore as against Rs 5,786 crore QoQ.
  • Consolidated net sales for FY09 at Rs 21,693 crore versus Rs 16,692 crore (a jump of 30%) and increase of 28.5% in Consolidated net profit at Rs 5,988 crore versus Rs 4,659 crore.
  • Infosys has recommended a final dividend of Rs 13.5/share.
  • Top client revenues for the quarter ended March 2009 declined by 12.06% QoQ
  • Top 10 client revenues declined by 5.75% QoQ

These are highlights of Q4 Results. Now lets look at how the future appears to the Infosys management

  • Q1 Revenue forecast at Rs. 5,379-5,480 crore.
  • Q1 EPS seen at Rs. 23.55
  • FY10 revenues to decline by 3.1-6.7% in dollar terms while increase in revenues by 1.7-5.7% in rupee terms
  • EPS for full year FY10 at Rs 96.65-101.18 a share versus Rs 104.43 in FY09

What does Infosys result indicates?

Slowdown in Revenue Growth Evident

A drop in Revenues for the company which had made it a habit to surprise investors with superior financials is a clear indicator of things to come. Further the guidance for Q1 FY10 and Full year predicts a challenging environment both in terms of pricing as well as new business. Top 10 client revenues saw a sharp decline which means that there will be tremendous pressure on billing rates in the days to come.

Infosys results are a clear indicator of drastic cut by companies on their IT spend. Obviously, when things are in pretty bad shape due to ongoing recessionary trends, companies would tend to cut down on their IT investments to maintain their bottom lines. Similar and more downtrend would be visible in the revenues of other IT companies.

Cost Optimization would be crucial

In a scenario where a company is not able to grow its revenues, it becomes imperative to cut down on the operating costs to generate profits. This would be visible not only in the IT companies, but across the sectors as the pressure to preserve margin mounts. As a result, we would see major Headcount reductions being announced by companies more particularly in IT sector as headcount is a major cost factor.

Is Revenue segmentation a Indicator ?

If we see change in Revenue Segment by Industry, it gives at least an indication of the broad environment of that industry. The sharpest drop in Infosys Revenue came from Financial Services and Manufacturing Industry Clients. This indicates that these industry are facing serious challenges and hence cutting on their IT spend. The Revenues from Telecom sector has increased conforming that this industry has not been impacted in a major way by the ongoing slowdown.

As the results season starts, we would need to see how Indian companies performed in the Q4. There are no high expectation this time around and if a company reports QoQ growth that would be a good indication of companies performance. I personally feel that Infosys results and guidance are reasonably good considering the severe drop in consumption and negative sentiments globally. The companies stock at Rs. 1400 looks reasonably priced and don’t see much movement on either side due to the results.


Highlights of Infosys Q4 results

Infosys Investor Presentation Download

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Tech Mahindra wins bid for Satyam Computers

tech mahindra Tech Mahindra has won the bid to acquire 31% stake in Satyam Computers. Tech Mahindra was the highest bidder with a price tag of Rs. 58 per share  against L&T’s bid at Rs. 49.50 per share. The deal is subject to statutory clearances from Sebi and the Company Law Board (CLB).

L&T already has 12& stake in the company as is currently not interested in divesting its stake.

Tech Mahindra will have to pay Rs 1757 crore (USD 351 million) for 31% at Rs 58 per share, whereas for the total 51% stake the company will have to pay Rs 2,890 crore. The company will make an open offer at Rs 58 per share.

The real Impact of the deal on Tech Mahindra would evolve in the days to come as it aligns the maligned Software firm’s business within its frame of operations and makes sure that clients do not move away from it. The impact of litigation related to Satyam fraud would also be a challenge for the company.

Intense trading activity was witnessed on Satyam Computer counter as the stock zoomed as high as 18% at the time of announcement, just to cool down later. More than 13 Crore shares of Satyam computers were traded. Tech Mahindra stock price also jumped by more than 12% post the announcement.

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Stock Review : Gitanjali Gems

gitanjaligems Stock : Gitanjali Gems

CMP: 65.85

Industry: Jewellery, Diamond, Retail & Lifestyle

Book Value Per Share : 209.58

EPS : 16.92

Market Cap: 560.14

What makes Gitanjali an attractive Investment ?

  • The stock is currently quoting at 0.31 times its Book Value.
  • Current EPS of 16.92 coverts into PE multiple of 3.89 which is significantly lower than Industry average of 5.1 considering strong brand presence of the company
  • The stock also Offers a Dividend Yield of 2.73% in addition to attractive valuation.
  • India continues to be one of the world’s largest consumer market for Jewellery and Gold.
  • India and China are considered to be fastest growing consumer market for diamond jewellery and this provides Gitanjali a reasonable offset to ongoing recession in world’s major economies.
  • Diamond jewellery is fast emerging as new social trend leaving behind old preference for plain Gold Jewellery.
  • The company’s foray into Infrastructure (primarily Gems and Jewellery SEZ’s), Lifestyle Products such as Watches and fashion accessories would offer diversified sources of Revenue to the company.
  • The company has aggressively followed its strategy of growth with acquisition which has helped it to expand its distributional capabilities.
  • The company has a healthy mix of income from Exports as well Domestic segments.

Risk Factors

  • US is the largest consumer of retail diamond jewellery (48% of world’s consumption) and largest export market for gems and jewellery for India, the ongoing recession would have impact on export earnings of the company.

Latest News on Gitanjali Gems

Sebi has issued an order granting permission to the promoters of Gitanjali Gems to Buy Back 1.2 Crore shares of the company at a price up to Rs. 120 per share without making public announcement of the same. This move would increase Promoter’s stake in the company from existing 54.19% to 63.09%.

Investment Guru is of the view that the stock has good potential to move up from current level. The proposed Buy back of shares by promoters would also act as a short term trigger to the stock price.The reduction in the stock price may happen on account on general fall in market, but this risk stands good for any stock being traded in the market.

Gitanjali Gems – Detailed Info

Shareholding pattern of Gitanjali Gems


Mutual Fund Holding Gitanjali Gems


Financial results – Quarterly Comparison

This stock was discussed earlier on this blog here

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Tata Nano booking opens today

The People’s Car has opened the booking from April 09,2009. Last date of booking your nano car is 25th April,2009.

Price of Tata Nano in Delhi


Booking Amount

Tata Nano Std.           Rs.95,000

Tata Nano CX             Rs.120,000

Tata Nano LX              Rs.140,000

Book Tata Nano ONLINE

You can book Nano online through company’s website. However, you cannot use credit or debit cards for payment of booking amount. You can use only Net Banking as a mode a payment. Click here to book Nano Online

Financing of Nano Booking amount

Canara Bank and United Bank of India emerge as good options

Tata Motors has entered into agreements with 18 preferred banks/NBFCs to enable prospective customers to get finance and facilitate booking of the car. The  lowest finance charge has been announced by Canara bank at Rs. 2850. SBI will charge 2,999 for financing the booking amount.

Those who are themselves paying the entire booking amount can submit their application forms  directly to State Bank of India through 1,350 notified branches in 850 cites, and also at Tata Motors Passenger Car dealerships, Westside and Croma outlets.

Post the successful allotment of the bookings, customers can convert their booking loan into a retail auto loan for the Tata Nano at very attractive rates with the preferred financiers. In this category United Bank of India has emerged as a best option as it offers conversion at 9% interest Loan.  Canara bank will charge 9.5% –11% depending on customer profile.

Deliveries of Nano Car to begin in July

Within 60 days of the closure of bookings on April 25th , 2009, Tata Motors will process and announce the allotment of 100,000 cars in the first phase of deliveries, through a computerized random selection procedure. These 100,000 allotments will be price protected for the launch prices till delivery of the cars but the booking amounts will not bear any interest for the customers. Deliveries will commence from July 2009.

Applicants have the option to retain their booking deposit, even if they do not get allotment in the first phase. Those who choose this option will be eligible for interest on their deposit, effective from the date of announcement of allotment of the second phase, at a rate of 8.5% for retention period between one year to two year and 8.75% for a retention period of more than 2 years. Allotment of retainees will be simultaneously communicated, along with the allotment of the first 100,000 cars.

Any Questions on Tata Nano ?

If you have any questions or queries about Tata Nano Car, I would suggest that you read the Frequently Asked Questions posted on Nano’s Website. The company has prepared Answers to a large numbers of questions that could be asked about the Car including its specifics, performance, safety, mileage, speed and a whole lot of other questions. Read the Frequently asked questions and their answers here

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Tata Motors FD Interest Rates reduced from April 16th,2009

Effective Yield on 3 years Deposit reduced from 13.5% to 11.83%

Tata Motors has announced reduction in Interest rates on its ongoing and hugely popular Fixed Deposit Scheme with effect from April 16th,2009.

Under the Quarterly Income Plan the Interest Rates on 1 year deposit has been reduced by 0.75%, on 2 Year deposit by 1% and  3 year deposit has been reduced by 1%.

Additional Interest to Senior Citizens, Tata Motors Shareholders and Employees of Tata Motors has also been reduced from 0.5% to 0.25%

Other terms and condition of the Fixed deposit scheme remains same. You can read further details about the scheme in my earlier post here.



If you are a senior Citizen or Tata Motors and its subsidiaries employee or a shareholder of Tata Motors, the Effective Yield on 1 Year Deposit will be 9.84%.

Effective Yield in case of 2 Year deposit will be 10.62%

Effective Yield on 3 year deposit will be 11.83%

The effective yield on 3 year deposit will get reduced by 1.67%. Hence, if you have made up your mind to invest in Tata Motors FD scheme, it would be better if you invest before 16th April,2009.


  Following are the Main Brokers / Distributors for the FD’s

•Tata Securities               •ICICI Direct

•Kotak Securities             •Stock Holding Corporation of India

•JM Financial                    •HDFC Securities

Related Post : Tata Motors FD


Click to Download

Fixed Deposit Form                                 •ICICI Direct Branches

HDFC Bank Collection Branches              • Stock Holding Corporation of India Branches

Tata Securities Branches                        •HDFC Securities Branches

Kotak Securities Branches                      •Form 15G

JM Financial Branches                             •Form 15H

Registrars to the Fixed Deposit Scheme


BHANDUP : C 13, Panna lal Silk Mills Compound, LBS Marg, Bhandup (West), Mumbai 400 078. Tel: 022-2594 6960-4.

FORT : 203, Davar House, Next to Central Camera Building, 197/199 D N Road, Fort, Mumbai 400 001. Tel : 22694127.

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Investment Guru now on Twitter

tweet Catch me on twitter to get insight on my thoughts on latest trading patterns and stocks that might do well from intraday/ short term perspective. You can also find tweets on fundamentals/market updates and other misc. topics. I have found twitter as a better medium to express in a short and sweet manner as I hardly get time to update the blog frequently. I would continue to update the blog as usual.

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