Best Investment Opportunities

Best Investment Opportunities For Near Term :


1. ONGC FPO : Our Recommendation : Strong Buy for Investment purpose for  longer Term.

About ONGC :
Incorporated in 1956, Oil and Natural Gas Corporation Limited (ONGC) is India based company involved in exploration and production of oil (hydrocarbons). ONGC's main business is around 2 energy segments: exploration and production, refining. During the fiscal year ended March 31, 2010 (fiscal 2010), ONGC had a crude oil production of 32.95 million metric tons and natural gas production of 27.98 million metric tons.

It is a Fortune Global 500 company ranked 413,and contributes 77% of India's crude oil production and 81% of India's natural gas production. It is the highest profit making corporation in India, according to filings with the BSE of latest quarter results External Link. It was set up as acommission on 14 August 1956. Indian government holds 74.14% equity stake in this company.

ONGC is Asia's largest and most active company involved in exploration and production of oil. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India. It produces about 30% of India's crude oil requirement. It owns and operates more than 11,000 kilometres of pipelines in India. It is one of the highest profit making companies in India. In 2010, it stood at 18th position in the Platts Top 250 Global Energy Company Rankings.

A turning point in the history of India’s oil sector was in 1994. While the oil sector was on the backburner of India's political realm for some time, is was brought to the forefront by the privatization of India's leading oil E&P organization, the ONGC. Simultaneously, there were steps taken for the enhancement of production on the Bombay High oil fields as the result of a INR 150 billion development investment.

One of Asia's largest oil E&P companies, ONGC became a publicly held company as of February 1994, following the Indian government's decision to privatize. This privatization was conceived and achieved (sweat equity) to a great extent by ONGC’s influential Association of Scientific and Technical Officers (ASTO) – spearheaded by the then Bombay top executives Ganesh P. Shahi and Amarjit S. Jowandha (DGM and Head - Management Services Group too) who worked closely with the then ONGC CMDs S. K. Manglik and S.L. Khosla, IAS and with Dr. Vijay Kelkar, Secretary, Ministry of Petroleum & Natural Gas, Government of India, among others. Amarjit S. Jowandha was able to usher in change from his imbibed learnings, inter alia, from his alma mater University of Bombay [Jamnalal Bajaj Institute of Management Studies (also referred to as JBIMS or just Bajaj]. Eighty percent of ONGC assets were subsequently owned by the government, the other 20% were sold to the public. At this time, ONGC employed 48,000 people and had reserves and surpluses worth INR 104.34 billion, in addition to its intangible assets. The corporation's net worth of INR 107.77 billion was the largest of any Indian company.

After its initial privatization, ONGC had authorized capital of INR 150 billion: it also met its need to raise INR 35 billion to invest in viable oil and gas projects. The Asian Development Bank (ADB) had also set a deadline for privatizing and restructuring at 30 June 1994, if loans were to be granted for development of two ONGC projects. As a consequence of the successful privatization, the loans were granted - US$267 million for development of Gandhar Field, and US$300 million for the gas flaring reduction project in the Bombay Basin. The successfully formulated and implemented privatization strategy put ONGC at par with other large multinational and domestic oil companies.

ONGC operates more than 22,000 km's of pipelines in India. Its subsidiaries include ONGC Videsh Limited (OVL), ONGC Nile Ganga BV (ONGBV), ONGC Nile Ganga (Cyprus) Ltd., Jarpeno Limited, Imperial Energy Tomsk Limited, San Agio Investments Limited and Imperial Energy (Cyprus) Limited.


2.100% CAPITAL PROTECTION FUND WITH COUPAN RATE OF 11%

SPECIFICATION

 v  Underlying                        : S&P CNX NIFTY Index

 v  Tenor                               : 14M/15M

 v  Capital Guarantee             : 100% Principal protected

 v  Initial Level                       : Close on allotment date

 v  Final Level                        : Close on 14M

 v  Redemption                      : 15M

 v  Underlying Performance     : (Final Level-Initial Level)/Initial Level

 v  Observation Frequency      : Daily

 v  Coupon                            : 11%

 v  Participation Rate(PR)        : 100%

 v  Upper Barrier Level           : 120%

 v  Contingent Level               : 77.5% Initial Level

Payoff scenarios*
Initial Level	5500	5500	5500	5500	5500	5500	5500
Contingent Condition Met	Yes	Yes	No	No	No	No	No
Barrier Hit	-	-	No	No	No	Yes	Yes
Final Level	3850	4262.5	4950	6050	6599.45	6600	7150
Nifty Performance	-33.00%	-22.50%	-10.00%	10.0%	19.99%	20.00%	30.00%
Product Performance	0.00%	0.00%	11.00%	21.00%	30.99%	11.00%	11.00%

Introduction - Structured Products

What are Structured Products?

 v  Investment instruments that can be customized to suit an investor’s risk return profile

 v  Returns are based on an underlying – Equity or Commodities

Key Features

v    Debt – like payoffs to Leveraged returns

 v  Principle Protection – Available as an option in various Structured Products

Benefits

 v  Ideal for investors with moderate risk appetite to generate equity like returns

 v  Customized to express very specific market views

 v  In case of capital protection, preserves capital in market downturns

Illustration to explain principal protection in a plain Structures Product

Instrument	Principal Protection	Liquidity	Risk		Potential of Maximizing Return	Customization	Fees
			Market Risk	Credit Risk
Structured Products	Available	Low/None	Low	Low/Medium	High	High	Upfront
Bank Fixed Deposits	Yes	Medium/High	None	Low	Low	Low	Upfront
Mutual Funds	No	High	Medium/High	None	High	Low	Management
Direct Equity	No	High	High	None	High	Low	Brokerage
Derivatives	No	High	Very High	None	High	Low	Brokerage

Comparison with other Investment Options

Capitalizes on range bound views by accumulating returns when underlying lies within a range

Looking back at maturity, captures the highest level during the product tenor

Protect the capital while still allowing one to participate on the upside of the underlying

Superior yields as compared to debt market instruments

Beat the underlying returns by offering a multiplier on underlying performance

13 June 2011 Closing Market Updates

13 June 2011 Closing Market Updates  15:46

Market opened with negative note but recovered later by following European market. Both the Indian indices ended flat with a minor rise on the 1st day of the week.Nifty ended at 5486.1 with 0.3 points up and Sensex gained 13.04 and ended at 18281.58.
Among BSE Sectoral Indices, Consumer Durables Index rose the most by 1.63% while Metal Index was the top loser by 1.02%
In Nifty50 stocks, JPAssociates gained the most by 3.68% and ended at 84.45 wheres Hindalco was the top loser by 2.38% which ended at 180.35
SBIN was the most traded stock on NSE by the traded value and Punjlloyd was the most traded stock by traded quantity on NSE today.
Advance / Decline ratio was negative as 672 stocks gained and 714 stocks declined today on NSE.
Major World Indices :
Hang Seng : +87.71
Nikkei : -66.23
FTSE : +10.07
CAC : +2.5
DAX : -10.62
Dow Futures : +13.00
Nasdaq Futures : +1.25

10 June 2011 Closing Market Updates

10 June 2011 Closing Market Updates  16:23

Market tanked today because of slowdown in IIP numbers published today as India's industrial output in April rose 6.3% from a year earlier, government data showed.Manufacturing output, which constitutes about 80% of the industrial production, rose an annual 6.9%. The data was the first of a new series with a different base year of 2004/05, new components and weightings. Under the old series, annual industrial output growth in April was 4.4%. Industrial output grew 7.8% in the 2010/11 fiscal year that ended in March, slower than 10.5% clocked in the previous fiscal year.
Nifty closed at 5485.8 with a fall of 35.25 points and Sensex dropped 116.36 and at closed 18268.54.
Among BSE Sectoral Indices, only Consumer Durable Index closed in positive to 0.43% whereas Capital Goods Index was the top losing sector by 1.18%.
Hindalco was the top gainer in Nifty50 stock and ended at 184.60. Grasim was the top looser by 2.24% which ended at 2223.10.
Nesco was the turnover topper by the traded value and HCC was the most traded stock on NSE by the traded quantity.
Advance/Decline Ratio was negative as 905 stocks declined and 485 stocks gained today on NSE.
Major World Indices :
Hang Seng : -189.46
Nikkei : +47.29
FTSE : -2.32
CAC : -10.87
DAX : +8.23
Dow Futures : -14.00
Nasdaq Futures : -2.25

9 June 2011 Closing Market Updates

9 June 2011 Closing Market Updates  15:56


Strategy given today :


Buy June Nifty 5600 CE @ 46 and Buy June Nifty 5400 PE @ 53

Market was volatile but ended flat as global markets didn't show any major activity. Nifty ended at 5521 shedding 5.85 points whereas Sensex lost 10.95 points to end at 18383.34. 
Among BSE Sectoral Indices, Consumer Durables index rose the most by 1.44% and Auto Index was the top loser by 0.57%
In Nifty50 stocks, Sail was the top gainer by 1.94% and ended at 146.95 whereas Ambujacem was the top loser by 2.13% and ended at 137.80.
SBI was the turnover topper on NSE by the traded value and Himachal Futuristic was the most traded stock on NSE by the quantity traded.
Advance Decline ratio was negative as 785 stocks declined and 605 stocks gained today on NSE.

Costlier fruits and onions pushed up food inflation to a two-month high of 9.01 per cent for the week ended 28th May, but the Prime Minister's chief economic advisor has expressed hope that the rate of price rise could moderate on the back of a good monsoon.

Food inflation, as measured by the Wholesale Price Index (WPI), was 8.06 per cent in the previous week.

In the last week of May, 2010, it was as high as 20.62 per cent.

The last time when food inflation was above 9 per cent was for the week ended 26th March, when it had stood at at 9.18 per cent.

As per data released by the government today, fruits became 30.78 per cent more expensive year-on-year, while onions were up by over 14 per cent.

In addition, milk prices went up by 8.49 per cent and egg, meat and fish became dearer by 6.99 per cent.

Cereals also became costlier by 5.77 per cent on an annual basis.

Major World Indices :

Hang Seng : -51.80
Nikkei : +17.69
FTSE : +4.24
CAC : +3.17
DAX : +15.17
Dow Futures : +28.00
Nasdaq Futures : +4.25

7th June 2011 Market Closing Updates

7th June 2011 Market Closing Updates:

Domestically, after a weak opening session, benchmark indices recovered nearly a percent from the bottom of the day through the trading session to end higher by a fourth of a percent in yesterday’s trade. Nifty after touching a low of 5479 ended at 5532, gaining 15 points compared to previous close.Today morning Asian markets are trading with negative bias and SGX Nifty is suggesting about 30 points lower opening for our market. We would like to reiterate that to fulfill the higher-top higher-bottom condition, the ideal situation would be that Nifty does not fall below 5434, which is the 61.8% retracement level of the 5328-5605 up move. Those who are holding trading long positions or want to bottom fish should keep a stop loss of 5434 on closing basis. Others can wait for the crossover of 5605 before taking fresh longs.

US markets started the new week on a negative note as Nasdaq and S & P 500 lost more than a percent while Dow fell half a percent to end near day low. Weak May jobs report that came on Friday and other economic reports in recent past have not been encouraging. 

Major gainers in the 30-share index were:

Jaiprakash Associates (1.76%),

Cipla (1.70%),

Infosys Technologies (1.55%),

Reliance Industries (1.48%),

Reliance Energy (1.14%), 

Tata Consultancy Services (0.97%).

The major losers in the Sensex.

Larsen & Toubro (1.01%),

Hindustan Unilever (1.00%),

Bajaj Auto (0.67%),

Wipro (0.66%),

Hero Honda Motors (0.64%),

NTPC (0.63%)
Mid & Small-cap Space

The Midcap and Smallcap index rose 0.57% and 0.37% respectively.

Sectors in Limelight

The Realty index was at 2,164.38, up by 27.13 points or by 1.27%. The major gainers were Anant Raj Industries (3.11%), D B Realty (2.64%), Indiabulls Real Estate (1.03%), D L F (0.86%) and Mahindra Lifespace Developers (0.6%).

The IT index was at 6,112.88, up by 60.39 points or by 1.00%. The major gainers were Infosys Technologies (1.55%), Tech Mahindra (0.95%), Core Projects and Technologies (0.37%), Mphasis (0.34%) and H C L Technologies (0.26%).

The Oil & Gas index was at 9,519.35, up by 85.44 points or by 0.91%. The major gainers were Hindustan Petroleum Corporation (1.55%), Bharat Petroleum Corporation (0.35%), G A I L (India) (0.3%), Indian Oil Corporation (0.08%) and Oil India (0.02%).

On the other hand, the Capital Goods index was at 13,311.67, down by 67.69 points or by 0.51%. The major losers were Larsen & Toubro (1.01%), Siemens (0.56%), A B B (0.51%), Bharat Heavy Electricals (0.27%) and Bharat Electronics (0.06%).

Market Breadth

Market breadth was negative with 1,364 advances against 1,284 declines.

6th June 2011 Market Closing Updates

6th June 2011 Market Closing Updates:

Nifty ended at 5535.75 with 19 points up where as Sensex gained 54.28 points and ended at 18430.76

EOD Chart