Egypt Crisis Hits Indian Stock Market Badly

The ongoing unrest in Egypt is raising concerns all over the world. Here in India, the crisis is prompting the retail investors and fund managers to surrender to selling pressure consecutively for the fourth session. As a result, Sensex, the benchmark index of Bombay Stock Exchange, dipped by more than 300 points on Monday's opening trade.


The 30-share index, which had already lost 755 points in the earlier three sessions, plummeted by 1.68%, or 301.70 points, to reach 18,094.27 points during the initial few minutes of Monday's trade. Nevertheless, the Sensex then picked up some pace and is presently at more than 18,200 points.


Likewise, National Stock Exchange's benchmark index, Nifty, plunged by 1.44%, or 79.55 points, to reach 5,432.60 on the opening trade. The wide-based index has currently gained some momentum.


According to market experts and brokers, the dampened trading sentiment in Indian Stock markets is being mainly driven by not only the ongoing protest in Egypt but also by the blue-chip companies' dissapointing results. Other reasons behind dismal performance of Indian stock markets can be the continued positions offloading by retail and other investors, and weakening trend in other Asian markets, induced by the US market losses which is again due to the Egypt unrest.

Among various Asian markets, Hang Seng index of Hong Kong declined by 1.20% and Nikkei index of Japan dipped by 1.63%.

SBI Asks for 250 Billion, But May Get Only 150 Billion via Rights Issue

State bank of India (SBI), India's largest lender, reportedly required about INR250 billion as capital infusion from the GoI (Government of India). However, the government decided to fullfill such requirements partially and voiced plans of infusing $3.3 billion or INR150 billion into the bank. The fund infusion would be made in the next fiscal year by way of a rights issue.

According to the experts at Unicon and other brokerage companies, the reasons behind SBI's high fund requirements are mainly the intention of expanding their presence and operations, and for maintaining a healthy capital adequacy ratio. However, the bank's intention of carrying out acquisition activities can also be another reason behind it.

SBI, which posted about 14% rise in net profit for quarter ended December, fears the dampening of its earnings growth due to the increasing interest rates.

The government had also expressed intentions of infusing another INR88 billion into various other state-run banks to help then in meeting their capital adequacy ratios.

Corporate and Market News Highlights

• Food Inflation-Induced Rate Hike Possible- Dearer vegetables pushed up the food inflation marginally to 15.57% for the week ended January 15, prompting experts to say that RBI may go for yet another round of rate hike in its mid-quarterly policy review in March. Food inflation was 15.52 per cent for the week ended January 8. It was 20.07 per cent a year ago. Based on price movement in the wholesale market food inflation rose by 0.05 percentage points for the week ended January 15 after declining for two consecutive weeks.

• PFC Likely to Announce FPO- The government today said that the Rs 7,000-crore follow-on public offer of the state-owned Power Finance Corporation (PFC) is likely to come around April or May this year.

• Oil India to Give Up on Libya Exploration Blocks- India's state-run explorer Oil India will relinquish two exploration blocks in Libya, its chairman N M Borah told reporters on Thursday, as their operations were not viable.

• RVL and IL&FS to Collaborate for Haryana's Economic Township Development- Reliance Ventures (RVL), a wholly-owned subsidiary of Reliance Industries (RIL), and Infrastructure Leasing and Financial Services (IL&FS) will jointly develop a model economic township and other infrastructure facilities at Jhajjar in Haryana. IL&FS will acquire a 45% equity interest in the new company. RVL and Haryana government will hold 45% and 10%, respectively.

• 3i Acquires Stake in BVG India Ltd.- 3i, an international investor in private equity, infrastructure and debt management, have acquired a minority stake in BVG India Limited.

• Marico Products to be Costlier- Hair oil major Marico said it will increase the prices of its products by up to nine per cent in a bid to offset high input costs. The company is also planning to invest about Rs 60 crore during 2011-12 financial year in its capital assets.

• L&T Likely to Sell Infotech Subsidiary- Larsen & Toubro may sell stake in its infotech subsidiary after failing to turn it into a bigger business. The firm is talking to merchant bankers about a sale mandate and has also held discussions with a bank representing a potential bidder last week.

Financial News On-The-Go

• Hindustan Unilever Ltd., India’s biggest household products maker, reported dip in profits for the second time in three quarters due to increase in raw material prices. Net income fell 1.7% to INR6.38 billion ($140 million) in three months ending Dec. 31, from INR6.49 billion a year earlier.

• Ipca Laboratories reported a 9.79%  jump in its net profit after tax for the quarter ended December 31, 2010, at Rs 63.95 crore. The company had posted a net profit after tax of Rs 58.25 crore in the corresponding period previous year.

• Engineering and construction major Larsen & Toubro (L&T) said it has inked a joint venture agreement with Japan-based Kobe Steel to manufacture internal mixers and twin screw roller-head extruders for the tyre and rubber industry for global markets, including India. The JV will invest around INR60 crores for setting up  manufacturing facility and related infrastructure. The strategic partnership enables the JV to leverage the technology leadership of Kobe in this segment as well as the market reach of L&T through its customer base in India and abroad.

• Sesa Goa Limited announced its unaudited consolidated results for the third quarter and nine months ended 31 December 2010. Consolidated revenues and profit after tax were Rs. 2,250 crores and Rs.1,068 crores, respectively, for Q3. Saleable iron ore production during Q3 and the nine month period was 5.29 million tons and 14.84 million tons, a 5% decrease and 9% increase, respectively, as compared to the corresponding prior periods.

• Sterlite Industries India Ltd., the nation’s largest producer of base metals, reported a 60% gain in third-quarter profit, aided by higher prices.Net income climbed to INR11.01 billion ($241 mn) in the three months ended Dec. 31 from INR6.87 billion a year earlier.

• Godrej Industries: The net sales have increased by 19% to Rs. 1024.17 crore on back of 47% growth in estate & property development and 39% growth in chemical business. OPM has increased by 82 basis points to 4.1% due to fall in raw material cost and purchased of traded goods. The profit before tax before exceptional items stood at Rs. 34.9 crore, a 571% growth due to rise in margin and other income.The consolidated net sales for 9M FY11 grew by 21% to Rs. 2981.82 crore on back of 32% rise in sales of vegetable oil, 26% rise in chemical business and 35% rise in estate and property business. OPM has decreased by 20 basis points to 3.4% due to rise in the cost of sales of property developments. The profit before tax before exceptional items stood at Rs. 125.43 crore, inclined by 98% due to increase in other income and fall in interest cost.

• Jindal Power IPO likely in 3-4 months to raise Rs 7200 cr.

CNBC Awaaz- Coromandel International- Unicon's Opinion

Some Useful News Highlights

FMCG-to-hotels major ITC has witnessed a 21.4% jump in net profit in the third quarter of this fiscal at Rs 1,389 crore, up from Rs 1,144 crore a year ago. The growth was fuelled by the above par performance of cigarette, hotel and agri businesses. The new FMCG businesses have cut down losses in the quarter to Rs 73 crore. Cigarette, agri and hotels business witnessed a healthy growth in profit while paperboard profit was marginally down to Rs 191 crore during the quarter.

The Bank of Maharashtra (BoM) on Friday announced results of third quarter for the financial year 2010-2011. The net profit of the bank for the quarter is Rs 90.25 crore as against Rs 52.3 crore in the last quarter. Operating profit for the third quarter of current financial year (Q3 FY2010-11) stands at Rs 789.17 crore as against Rs 552.26 crore in Q3 FY2009-’10, recording a year to year (y-o-y) growth of 42.90 per cent. The total business of the bank rose to Rs 106514.98 crore as compared to Rs 95032.13 crore as on December 31, 2009, showing a y-o-y growth of 12.08 percent.

Reliance Industries, India’s top company by market value , reported a 28% growth in quarterly net profit as it earned more dollars for each barrel of oil it refined while strong demand boosted the petrochemicals business to its best-ever performance. The company, which runs the world’s biggest refining complex at Jamnagar, is expected to maintain robust refining margins in the current quarter as economic recovery in Western countries fuels demand and expands gross refining margins (GRM). Its refinery is expected to process more crude in the current quarter as one unit was shut down for maintenance in the October-December period.

Tech Mahindra, India's fifth-largest IT company, reported a sluggish 2% rise in its sales for three months ended December 31, 2010, from the same period last year. Despite sluggish sales growth, the company, which counts British Telecom and AT&T as it largest customers, reported a net profit growth of 49% since last year.

Buoyed by rural and international sales, Wipro Consumer Care and Lighting (WCCL) posted a 21% jump in revenues to Rs 695 crore for the quarter ending December 31, 2010, compared to the corresponding period a year ago. Earnings before interest and tax ( EBIT) for the quarter rose 14% to Rs 85 crore. The company reported an operating margin of 12.3% for the quarter.

The follow-on public offer (FPO) of Tata Steel garnered a smart response from the investors, with the issue getting over-subscribed 5.97 times on the final day. As per the data available on the National Stock Exchange website till 1700 hrs, the Tata Steel FPO received bids worth 29.06 crore shares against 4.8 crore equities on offer, thereby, generating demand worth a whopping Rs 17,726.6 crore.

State-run Oil and Natural Gas Corporation (ONGC) today shut some wells at the Bassein oil and gas field, Western Offshore, after detecting leakage in the Mumbai Uran Trunk (MUT) oil pipeline. Fields in the Western Offshore are about 140 km from the west coast here and 40 km south of the Mumbai High fields. Bassein is the nation’s biggest oil field. The leak will cause a loss of 25,000 barrels (a barrel is 157.5 litres), ONGC said in a press statement today. The MUT currently pumps 212,000 barrels of oil per day.

Walk-In Interview

Walk-In Interviews at Unicon Investment Solutions


Dear Candidate,

We have the following opportunities:

1) Team Leader/Team Coordinator

Job Specifications:

• Leading a team of Tele callers

• Generating Leads for the sales team through calls

• Coordinating with sales team to monitor the documentation involved in the policy.

• Making calls to the existing clients.

• Fixing meetings for RM with existing as well as prospective clients


Minimum Qualification: Graduate

Job Location: Delhi/NCR


2) Tele Sales Officers/Tele sales Executives

Job Specifications:

• Outbound Insurance Process

• Calling prospective clients to generate business sales

• Making calls to the existing clients

• Tele calling with convincing capability

• Fix meetings for RM with existing as well as prospective clients


Language Preference: Good Communication Skills (English, Hindi & Punjabi)

Qualifications: UnderGraduate/ Graduate

Job Location: Delhi/NCR



The interviews are currently open at our following offices:

Noida: - 221, Block- D, Sec-63

(Near Danik Jagran Building)

Contact: HR - 9311028811


Pusa Road: - 26, Block No-34, 3rd Floor

Pusa Road, Near Karol Bagh Metro Station.

Contact: HR - 9310664224


Moti Nagar: - 33, DLF Industrial Area

Moti Nagar, Near Moti Nagar Metro Station

(Metro Pillar No. 316)

Contact: HR 9311028812



Candidates may apply through our website, www.uniconindia.in OR Send resume at irecruitment@uniconindia.in OR SMS- Unicon HR to 54646

Walk-In Interviews

Walk-In Interviews at Unicon Investment Solutions


Dear Candidate,

We have the following opportunities:

1) Team Leader/Team Coordinator

Job Specifications:

• Leading a team of Tele callers

• Generating Leads for the sales team through calls

• Coordinating with sales team to monitor the documentation involved in the policy.

• Making calls to the existing clients.

• Fixing meetings for RM with existing as well as prospective clients


Minimum Qualification: Graduate

Job Location: Delhi/NCR


2) Tele Sales Officers/Tele sales Executives

Job Specifications:

• Outbound Insurance Process

• Calling prospective clients to generate business sales

• Making calls to the existing clients

• Tele calling with convincing capability

• Fix meetings for RM with existing as well as prospective clients


Language Preference: Good Communication Skills (English, Hindi & Punjabi)

Qualifications: UnderGraduate/ Graduate

Job Location: Delhi/NCR


The interviews are currently open at our following offices:

Noida: - 221, Block- D, Sec-63

(Near Danik Jagran Building)

Contact: HR - 9311028811


Pusa Road: - 26, Block No-34, 3rd Floor

Pusa Road, Near Karol Bagh Metro Station.

Contact: HR - 9310664224


Moti Nagar: - 33, DLF Industrial Area

Moti Nagar, Near Moti Nagar Metro Station

(Metro Pillar No. 316)

Contact: HR 9311028812



Candidates may apply through our website, www.uniconindia.in OR Send resume at irecruitment@uniconindia.in OR SMS- Unicon HR to 54646

Walk In interview

Job Title

Tele Sales Officers/Tele sales Executives

Location

Delhi/NCR

Job Descriptions

Outbound Insurance ProcessCalling prospective Clients to generate business sales Making calls to the existing ClientsTele-calling with convincing capability.

Fix meetings for RM with existing as well as prospective Clients

EligibilityQualification UG/ Graduate Good Communication Skills Language Preference English, Hindi, Punjabi

Intersted Candidates can walk in at below Locations

Noida: - 221, Block- D, Sec-63(Near Danik Jagran Building)Contact: Ms.Charu – 9311028811Pusa Road: - 26, Block No-34, 3rd FloorPusa Road, Near karol bagh metro station.Contact: Ms. Simran

Moti Nagar: - 33, DLF Industrial AreaMoti Nagar, Near Moti nagar metro station(Metro Pillar No. 316)Contact: Mr. Amit Arora -9311028812

All the best Team Unicon