Sensex

Wednesday, December 03, 2008

DG - FW: Sharekhan Post-Market Report dated December 03, 2008

 

 

From: The Sharekhan Research Team [mailto:marketwatch@research.sharekhan.com]
Sent: 03 December 2008 16:04
To: The Sharekhan Research Team
Subject: Sharekhan Post-Market Report dated December 03, 2008

 

 Sharekhan's daily newsletter

Visit us at www.sharekhan.com

 

December 03, 2008

 

Index Performance

Index

Sensex

Nifty

Open

8,851.22

2,657.50

High

8,854.81

2,693.65

Low

8,601.41

2,611.95

Today's Cls

8,747.43

2,656.45

Prev Cls

8,739.24

2,657.80

Change

8.19

-1.35

% Change

0.09

-0.05

 

Market Indicators

Top Movers (Group A)

Company

Price 
(Rs)

%
chg

Gainers

LIC Housing Finance

200.50

21.48

Sun TV

173.70

20.54

Tata Steel

164.70

10.80

IVRCL Infra

137.30

9.88

GMDC

28.50

9.18

Losers

Phoenix Mills

59.90

-4.77

HCL Tech

119.70

-4.43

Infosys Tech

1,157.85

-4.29

Edelweiss Capital

248.85

-4.28

Wipro

223.00

-4.23

Market Statistics

-

BSE

NSE

Advances

1,180

677

Declines

930

475

Unchanged

78

59

Volume(Nos)

22.56cr

52.43cr

 Market Commentary 

Markets listless 

After an intra-day swing of 254 points, the Sensex ends flat.

In a spiritless trading session, the market displayed a range-bound trend with select bouts of buying and selling. After opening 112 points higher over its 

 

previous close of 8,739, the Sensex scaled higher to touch an intra-day high of 8,855. In mid session the market remained steady, however the sentiment turned bearish at the end of the session and the index dipped to the day's low of 8,601. However, the Sensex on the back of selective stocks ended on a flat note at 8,747, up by just eight points. Nifty however lost a point for the day to close at 2,656. Market breadth on the BSE was positive. Of the 2,188 stocks traded, 1,180 stocks advanced whereas 930 stocks declined; the remaining 78 stocks ended unchanged.

Sectoral indices showed a mixed result. BSE Metal, BSE Realty, BSE CD, BSE Bankex, BSE PSU, BSE CG, BSE Auto and BSE Power ended in the green, However, BSE IT, BSE Teck, BSE Oil, BSE HC and BSE FMCG exhibited weakness. 

Among the gainers, Tata Steel flared up 10.80% at Rs164.70, JP Associates moved up 8.04% at Rs62.45, Maruti Suzuki India jumped 6.94% at Rs492, State Bank of India gained 5.50% at Rs1,097, DLF scaled up by 5.44% at Rs191.90, Tata Motors was up 3.74% at Rs133.20 and ICICI Bank advanced up 3.44% at Rs334.90. Reliance Infrastructure, Larsen & Toubro, HDFC, Sterlite Industries, Ranbaxy Laboratories, Tata Power and Tata Consultancy Services reported steady gains. However, Infosys Technologies dropped 4.29% at Rs1,157.85, Wipro shed 4.23% at Rs223 and Mahindra & Mahindra dipped 2.80% at Rs242.80. Reliance Communications, Hindalco, and ONGC were marginally down. 

Over 2.36 crore Unitech shares changed hands on the BSE followed by Suzlon Energy (1.46 crore shares), GVK Power & Infrastructure (1.23 crore shares) and NIIT (0.78 crore shares) 

European Indices at 16:00 IST on 03-12-2008

Index

Level

Change (pts)

Change (%)

FTSE 100 Index

4081.15

-41.71

-1.01

CAC 40 Index

3093.77

-59.13

-1.88

DAX Index

4431.79

-100.00

-2.21

Asian Indices at close on 03-12-2008

Index

Level

Change (pts)

Change (%)

Nikkei 225

8004.10

140.41

1.79

Hang Seng Index

13588.66

182.81

1.36

Kospi Index

1022.67

-0.53

-0.05

Straits Times Index

1640.57

1.39

0.08

Jakarta Composite Index

1192.52

1.16

0.10

To know more about our products and services, click here.

“This document has been prepared by Sharekhan Ltd. This Document is subject to changes without prior notice and is intended only for the person or entity to which it is addressed to and may contain confidential and/or privileged material and is not for any type of circulation. Any review, retransmission, or any other use is prohibited. Kindly note that this document does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction.
Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. SHAREKHAN will not treat recipients as customers by virtue of their receiving this report.
The information contained herein is from publicly available data or other sources believed to be reliable. While we would endeavour to update the information herein on reasonable basis, SHAREKHAN, its subsidiaries and associated companies, their directors and employees (“SHAREKHAN and affiliates”) are under no obligation to update or keep the information current. Also, there may be regulatory, compliance, or other reasons that may prevent SHAREKHAN and affiliates from doing so. We do not represent that information contained herein is accurate or complete and it should not be relied upon as such. This document is prepared for assistance only and is not intended to be and must not alone betaken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. We do not undertake to advise you as to any change of our views. Affiliates of Sharekhan may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. 
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject SHAREKHAN and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale 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.
SHAREKHAN & 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. SHAREKHAN 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 SHAREKHAN, 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 SHAREKHAN.”

To unsubscribe write to myaccount@sharekhan.com

 

Manage your newsletter subscriptions

 

__._,_.___
Regards

BigGains !!
Recent Activity
Visit Your Group
Yahoo! Finance

It's Now Personal

Guides, news,

advice & more.

Ads on Yahoo!

Learn more now.

Reach customers

searching for you.

Yahoo! Groups

Special K Challenge

Join others who

are losing pounds.

.

__,_._,___

DG - Guidelines For Foreign Company Set-up in India

RBI Guidelines For Foreign Company Set-up in India & Repatriation of Income

Foreign companies may set up business in India in any one of the following manners while retaining its status as a foreign company:

1. Liaison Offices - A foreign company can open a liaison office in India to look after its Indian operations, to promote its business interests, to spread awareness of the company's products and to explore further opportunities. Liaison offices are not allowed to carry on any business or earn any income in India and all expenses are to be borne by remittances from abroad.

2. Project Offices - The project office is the ideal method for companies to establish a business presence in India, if the object is to have a presence for a limited period of time. It is essentially a branch office set up with the limited purpose for executing a specific project. Foreign companies engaged in turnkey construction or installation normally set up a project office for their operations in India.

3. Branch Offices - Foreign companies engaged in manufacturing and trading activities outside India may open branch offices for the purpose of:

• Representing the parent company or other foreign companies in various matters in India, like acting as buying and selling agents.
• Conducting research, in which the parent company is engaged, provided the results of this research are made available to Indian companies
• Undertaking export and import trading activities.
• Promoting technical and financial collaborations between Indian and foreign companies.

4. Trading companies - Foreign companies may invest in trading companies engaged primarily in exports. Such trading companies are treated at par with domestic trading companies in accordance with the trade policy.

The RBI accords automatic approval for foreign equity up to 51 per cent for setting up trading companies engaged primarily in exports. All other proposals, which do not meet the criteria for automatic approval, can be addressed to the Foreign Investment Promotion Board, i.e. "FIPB".

5. Wholly owned subsidiaries - Foreign companies may set up a wholly owned subsidiary, which is an Indian Company with an independent legal status, distinct from the parent foreign company.
Under the current foreign investment policy, a wholly owned subsidiary can be established either under the automatic route, if the conditions specified therein are complied with (specific high priority industries) or obtain an approval from the FIPB.

6. Joint venture companies - Foreign companies may set up a joint venture company i.e. in financial collaboration with an Indian business house/company in India, which is an Indian Company with an independent legal status, distinct from the parent foreign company.

Under the current foreign investment policy, a joint venture can be established either under the automatic route, if the conditions specified therein are complied with or obtain an approval from the FIPB.

Foreign companies intending to set up any kind of office mentioned above activities on behalf of the parent company or foreign trading companies in India for promotion of exports from India have to obtain a prior approval of the Reserve Bank by submitting an application in the prescribed form to the Central Office of Reserve Bank. On approval of such cases, permission is granted initially for a period of 3 years, subject to the condition that expenses of such office will be met exclusively out of inward remittances; such offices are not permitted to generate any income in India.

Industrial Policy:

Industrial Policy determines items/areas reserved under automatic route of approval by the RBI for Foreign Company to do business in India. Automatic approval is available through the RBI in all items/activities with the exception of a few items which are set out in Press Notes issued by the Government of India.

Besides reserved items/areas reserved by Reserve Bank of India are also notified a "List A" which specifies activities that are not covered by its Automatic Route.

To carry on business in items/areas reserved in List A, proposals are required to be approved by Foreign Investment Promotion Board, Government of India for which an application is required to be made to Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Government of India, New Delhi.

Industrial licensing is mandatory in respect certain industries i.e.

·     Distillation and brewing of alcoholic drinks;

·     Cigars and cigarettes of tobacco and manufactured tobacco substitutes;

·     Electronic Aerospace and defense equipment of all types;

·     Industrial explosives including detonating fuses, safety fuses, gun powder, nitro cellulose and matches; Hazardous chemicals;

·     Drugs & Pharmaceuticals (according to modified drug policy issued in September '94).

The compulsory licensing provisions do not apply to the small-scale units manufacturing any of the above items reserved for exclusive manufacture in small scale sector.

Specific Industries are exclusively reserved for the public sector i.e. Arms and ammunition and allied items of defense equipment; defence aircraft and warships; Atomic energy; Railway transport.

Foreign Collaboration:

Indian Companies can also enter into Technical Collaboration Agreements with Foreign Collaborators under two routes:

" The automatic route of Reserve Bank " Under approval of Secretariat for Industrial Assistance (SIA), Ministry of Industry, Government of India, New Delhi.

Application for foreign technical collaboration which do not conform to the parameters given in automatic route are required to be made to SIA, Ministry of Industry, Government of India, New Delhi. The extension of Foreign Technical Collaboration Agreements (including those approved by the Reserve Bank) is also required to be approved by SIA.

Nuts and Bolts-1: Registration & Incorporation

The procedure for registration of an industrial undertaking varies; it entirely depends upon whether the item proposed to be manufactured falls within the licensed, de-licensed, or small-scale sector. An application seeking an industrial license must be filed with the Ministry of Industry together with the application seeking NRI investment approval. An application in Form FC/IL - SIA must be submitted to the Ministry of Industry for grant of an industrial license.

Form FC/IL - SIA should comprise information related to the promoter and collaborator, proposed activities, items of manufacture, capital structure, borrowings, investment, foreign exchange inflow, technology transfer, if any.

There is no definite time frame as when the approval will be granted, it depends on a case-to-case basis. However, if the information supplied in Form FC / IL - SIA is precise and calls for no clarification from the Government, approval is normally obtained in 4-6 weeks.

In case of an item reserved for manufacture in the small-scale sector unit must get itself registered with the Directorate of Industries/District Industries Centre of the State Government concerned.

Capital investment made in India can be repatriated fully repatriated along-with the profits after completing certain formalities. Also, returns on the investment can be repatriated in two forms i.e.: (1) "Dividend - dividend on shares held by foreign investors is fully repatriable subject to certain formalities, and (2) "Interest - interest earned on bonds or debentures can be repatriated after paying appropriate tax.

The profit, earned by the branch doing permitted activities can be remitted after payment of the necessary taxes in India, the branch office should submit an application for remittance to the authorized person along with necessary documents/certificates etc., as prescribed.

Direct Tax Issues Tax liability in India is basically determined on two criteria viz. Scope of total income and Residential status of the taxpayer. Company that is registered outside India is treated as a Foreign Company.

Taxable income of foreign enterprises determined as per the various provisions contained in the Indian Income-tax Act, wherever a foreign enterprise belongs to a country with which India as entered into an agreement for Avoidance of Double Taxation (AADT), the tax liability determines as per the provision of the relevant AADT.

__._,_.___
Regards

BigGains !!
Recent Activity
Visit Your Group
Yahoo! Finance

It's Now Personal

Guides, news,

advice & more.

Ads on Yahoo!

Learn more now.

Reach customers

searching for you.

Special K Group

on Yahoo! Groups

Join the challenge

and lose weight.

.

__,_._,___