Category Archives: China

Indian Market Slips; European Indices Also Close Lower

Indian Stock market slipped on Monday after a very good start for the New Year 2013. Stock market experts are still positive about the movement of the Indian stock market. Goldman Sachs has given positive rating for Indian and Chinese markets.

BSE Sensex closed 93 points lower at 19691 and NSE Nifty closed 27 points lower at 5988. Among major losers in today’s trade were Larsen, Jaiprakash Associates, HDFC and HUL.

Goldman Sachs has given a strong guidance for Indian stock markets with 7000 as target for NSE Nifty by the year end. The brokerage house has upgraded the GDP growth for Asian region to 6.9 compared to earlier estimates of 6.2 per cent.

Bajaj Auto MD has expressed worries over lower sales in auto sector. He has pointed that Bajaj Auto expects flat sales in year 2013.

Major gainers in today’s session were BPCL, Maruti Suzuki, Cipla and Tata Steel.

Indians Buying More Gold Even as Worldwide Demand Remains Low

Indians are buying more gold even when the yellow metal is ruling at its all time high prices. Many experts were expecting that the price rise in Gold could impact the consumption of the precious metal but Indians have proved them wrong.

More people are buying gold and many of them buy it as an investment for long term. Global gold demand registered a decline of 11 per cent during third quarter of 2012. China and India are among major consumers of Gold. The gold purchases in China witnessed decline of 8 per cent during the same period.

Indian gold consumption went by 9 per cent in third quarter. The price of gold has been ruling higher in India due to rise in value of US dollar compared to Indian currency.

However, investors are finding gold as a safer investment and this has pushed the demand for the yellow metal. The recent trends in real estate market have been bearish. Due to lower returns on real estate investments, some investors are churning their funds and investing in Gold.

The demand for Gold coins and bars in Germany has witnessed steep fall. In Indian market, the price of gold was trading at Rs 31,596 per 10 grams.

China Supersedes US’s Smartphone Market

The Strategy Analytics, a research firm, has revealed that China has recently surpassed the US in the smartphone market. It has been revealed that the delivery and operation of smartphone in China market has increased by
58% in the third quarter of this year.

It is believed that a surge in the China’s smartphone market has occurred due to subsidies offered by operators like Apple. Moreover, lower price smartphones running on Google have also helped in boosting the Smartphone market of China.

Although the smartphone market of China has witnessed a surge, its shipments in the US have experienced a decline of 7%. Nokia alone shipped 6.8 million smartphones to China. Beside, Samsung shipped about 4.2 million smartphones in the China.

While commenting upon the progress of China’s smartphone market, Strategy Analytics Executive Director Neil Mawston said, “China is now at the forefront of the worldwide mobile computing boom. China has become a large and growing smartphone market that no hardware vendor, component maker or content developer can afford to ignore”.

It is for the very first time when China has overtaken the US in the smarphone market. China has gained the reputation of world’s largest mobile phone market as it has 952 million users. Moreover, its market is continuously growing. With the advent of 3G phones, it’s believed that the China’s smartphone market would witness more demand.

As the China has turned a powerful smartphone market, the international hardware vendor and component developers can not afford to ignore it. In the coming time it will be interesting to see as to how far the smartphone market of China grows worldwide. Moreover, it would also be interesting to see as for how long it continues to supersede the US smartphone market.

Tata Motors Survive Amid Uncertain Monday Trade

Monday’s stock market was full of ups and downs and it would not be wrong to say that the whole day bent towards low trade.

Though there was instability, Tata Motors was announced as gainer for Monday’s trade. It rose by 4.9% which amounted to Rs 169. There is reason for it as on the same day, the company launched the novel model of Nano.

The new model promises to deliver better services and also has increased fuel efficiency and would also boast of complete new looks which were not present in old models, but it would be sold at the same price.

It is not that Tata did not witness loss in share market. It declined by 11.36% but despite that, it managed to register growth. As per reports by brokerage firm Kotak, there is no doubt that there has been growth and main credit of it should go to the novel model of Nano, but it should be noted that there are places where it needs improvement.

First of all, the company is too lenient on operating profit front and this is the main reason for decline in the sale of domestic business. In addition, various factors like high discounts, increased market investment and negligible presence in the passenger car segment are also some of the many reasons for the decline.

Jaguar Land Rover has shown great sales in market and it has made the company earn a fat amount. TO tell in details then its profit after tax is £1 billion. Profit could have increased if forex losses would not have been there.

Officials were of the view that it is a luxury drive and is doing exceptionally well in China and Russia but as said, it is a complete luxury drive so its sales have found to be declining in developing countries by 2%.

Deal Between BP and Bridas Gets Cancelled

The much awaited deal between the BP and CNOOC Ltd and Bridas has got cancelled due to the failure in transaction.

BP wanted to sell its stake in Pan American Energy, as they needed urgent funds to pay for the cleanup of its Gulf of Mexico oil spill. But that was way back in 2010 and now the BP’s Chief Executive, Bob Dudley, said that they would not repent if this deal gets cancel as torment phase has got over.

CNOOC Ltd, China’s biggest offshore oil producer and Bridas, 40% stake holder of PAE have blamed BP for collapse of the deal. They affirmed that there were some legal hassles in the deal and moreover, BP did not handle transaction in an appropriate manner which resulted cancellation of the deal.

It seems malign act has started as Dudley was of the view that to get Argentine anti-trust and Chinese regulatory approvals was the sole responsibility of Bridas and they were unable to get those permission, so their deal did not turn out to be successful.

Bridas is in no mood to take burden of failure on its head and affirmed that approval is not the reason as the Chinese and Argentine governments were in complete support for the deal.

BP is in not ready to strike peaceful chord with Bridas and affirmed that they would make some strategies in regard to PAE, but on the other hand, Bridas is still ready to negotiate with BP.

Experts were of the view that cancellation of the deal would surely affect profits of BP, which would publicize its annual turnover by the start of next year. But it is something, which is of little concern for BP.

Dudley said that tough time is over and they no more need to get into agreement, which would be more of divestment.

Ericsson Eyes Indian Market As Export Center For Networking Gear

Telecommunication equipment manufacturer Ericsson stated that it was looking at making the country a worldwide export centre for networking gear from its Jaipur plant.

Ericsson India President Fredrik Jejdling stated, “We have recently increased capacity at our facility in Jaipur. In the future, we are looking at making this facility a global export hub.”

But, he refused to remark on the details of investment and time period for beginning for exports from the division.

Commencing with wireline hardware fabrication, it makes 2G and 3G tools at the said division.

Ericsson handles assembly lines offering tools for radio access system, core net, transmission solutions and modules from the division.

With the initiation of novel technologies, comprising 3G and TD-LTE, in the country, the development was done to expand the company’s capacities to hold up the clients in a better way.

“We can now look at exporting to other countries as well,” Mr. Jejdling said.

Ericsson owns manufacturing divisions in Sweden, China as well as Brazil.

Nifty Below 5500; Sensex Declines 202 Pts

Decline in manufacturing figures in US, Europe and China hit investor opinion all over the world.

The benchmark Sensex lost 200 points with rate sensitive stock such as banking, real estate and capital goods taking a beating.

The 50-share NSE Nifty was ruling at 5,455 after slipping 62 points whereas the 30-share index BSE Sensex declined 202 points to trade at 18,112 late morning trade.

As per portfolio manager PN Vijay, worldwide events would be the vital factor for market by the next six months.

“There may be a slightly negative backdrop but substantially the action has to come within India.”

Technology scrips saw selling pressure as retardation will absolutely have impact on exports of these firms.

Infosys, TCS and Wipro shed between 1% & 2%.

Heavyweight stocks like Bharti Airtel, ITC, L&T, SBI, ICICI Bank and HDFC Bank dropped between 1% & 2%. Reliance Industries shed more than 0.5%.

But, Sun Pharma, NTPC, HUL, Cipla, Ranbaxy and GAIL topped the gainers’ charts on Nifty.

On the worldwide front, Asian bourses broadened losses – Kospi was the key loser, declining 2.4%.

Shanghai, Nikkei, Straits Times and Taiwan remained down by 1-1.7%. Hang Seng lost 0.7%.

Richard Ross, global technical analyst at Auerbach Grayson said that the genuine financial scene in US is dull, irrespective of what comes out of Washington.

Woodland Plans To Make Investment Of Rs 100 Cr To Set Up Facility, New Stores

Footwear and apparel giant Woodland announced that it will make an investment of more than Rs 100 crore during the existing financial year to establish a new manufacturing unit at Greater Noida and open 60 more exclusive stores in the country.

Woodland Managing Director Harkirat Singh stated, “We are commissioning a new unit for denim and woven garments at Greater Noida with an investment of about Rs 60-70 crore. The production is likely to start in the next 3-4 months.”

Mr. Singh added that the company will also establish 60 new exclusive Woodland stores crosswise the country, with concentration on Tier II and Tier III cities, involving an investment of around Rs 40 crore.

At present, Woodland runs more than 300 exclusive outlets and also sells its products at more than 400 multi-brand stores.

“Almost 50% of the new stores planned would be large format spread across 10,000-12,000 square feet,” Mr. Singh added.

At present, the company possesses or functions 10 manufacturing facilities in North India for outdoor shoes.

The company outsources production of fashion footwear array to Vietnam and China.

For the existing fiscal year, the company anticipates 30% expansion to touch hit revenue of Rs 800 crore.

Mr. Singh also said that in addition to flourishing the physical retail footprint, the company is betting big on online retail.

“In the next two years, we expect our online sales to contribute 10% to our total turnover,” he said.