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Facebook hits the market today. Will people buy it ?

Marketlive.in Administrator — Fri, 18 May 2012 06:23:30 +0000

Its a big day for the social networking giant Facebook. On Friday, the company enters the public market after its Initial Public Offering. Can the company gather “Likes” on the trading floor of the stock exchange ? Will people give it a thumbs up and buy it at a premium value ? We try to find out the prospects of this tech giant.

Earlier, Facebook had announced its IPO to go public. The IPO was priced at $38 per share on Thursday, at the top of expectations. People who were sure of the company’s success had subscribed for the IPO. Allocations have been made to retail and institutional investors based on their bids. Today, the stock gets listed in the stock market, and normal traders and investors can buy it in the floor of the market.

It would be interesting to see if the price of the stock zooms up during the listing, as the demand for the company’s share rockets up. Market analysts, however are expecting that the demand might not be so huge for the shares of the internet giant, and even predict that some of the institutions might even sell off their shares allotted during the IPO.

When it comes to the stock market, profit numbers speak it all. Facebook managed to have a net income of $205 million in the first three months of 2012, with a revenue of $1.06 billion. For the year of 2011, it had earned $1 billion, while it could earn $606 million during the year 2010. Facebook is betting big on this profit trend and has decided to go public now.

Do market analysts foresee this trend to continue in the further years ? Can Facebook deliver the same amount of profits to its investors in the future ? This is the big question that the market analysts have been discussing. The price of the share now depends on what the investors feel the prospects of the company would be.

Morgan Stanley, one of the firms identified as the lead underwriters for the Facebook IPO, had previously set a cap of 500 shares per retail client. But it has been recently reported that the firm had increased the limit to 5,000 shares.

Nifty down. Close to breaking 4800.

Marketlive.in Administrator — Fri, 18 May 2012 04:15:39 +0000

Markets have opened in the red following global cues. Nifty is down 67 points or 1.3% at 4,804. Sensex has opened down 210 points at 15,860.

US stocks added to losses late on Thursday, as higher Spanish bond yields increased investor anxiety over that country’s banks and another round of weak data undermined hopes for US economic recovery.

The Dow Jones industrial average lost nearly 1.1% to 12,465. The Standard & Poor’s 500 Index slipped 1.3% to 1,308.

Asian shares fell steeply on Friday. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.6%, while Japan’s Nikkei stock average opened down 1.7%.

Metal shares have slipped with Tata Steel, Hindalco, JSPL in red. Auto shares are in the negative zone as well. Pressure can also be seen in JP Associates, Ranbaxy, ITC and HDFC.

Gujarat NRE Coke (GUJNRECOKE) has lost over 4%. Jubilant Foodworks is down by 1.2%. Titan industries has seen a decline of 2%.

“Shahrukh Khan was drunk and misbehaved. We ban him”!

Marketlive.in Administrator — Thu, 17 May 2012 06:20:04 +0000

Bollywood superstar Shahrukh Khan has entered into a big controversy again. Khan, often dubbed as the ‘Baadshah of Bollywood’, in a recent row, has been alleged to have been drunk and misbehaved with the cops and the officials at the Wankhede Stadium in Mumbai. Shahrukh was accused as having an ugly spat with the Mumbai Cricket Association (MCA) officials during the incident. The MCA officials have been reported to take the matter seriously and file a complaint against SRK.

“He (Khan) misbehaved and abused the MCA security personnel as well as MCA officials, including our president Vilasrao Deshmukh, after the IPL match (between KKR and Mumbai Indians). We have decided to ban him for life from entering the stadium in future,” Ravi Savant, vice-president of MCA was reported as being said.

The incident is reported to have happened last night, after the Shahrukh Khan owned Kolkata Knight Riders (KKR) team scored a victory over the Mumbai Indians in a fantastic way. After the victory, Shah Rukh and his bodyguards were said to have gone to the dressing room of the team and then came down and stepped on to the ground.

“The MCA security personnel told them they cannot do so as the match was over which led to Shah Rukh abusing them as well as the MCA officials. There was manhandling too by his people. We have decided to ban him from all future matches at the stadium. We are also going to lodge a police complaint against him,” said Savant.

The officials at the MCA have decided to lodge a complaint with BCCI against Shah Rukh Khan. MCA secretary Nitin Dalal has informed that a complaint has also been registered against him in the Marine Drive police station.

However IPL Chairman Rajiv Shukla has come out denying the reports of banning Shah Rukh Khan from Wankhede. “So far no decision has been taken. BCCI working committee will decide upon the ban,” he said. BCCI has said that its Anti-Corruption in-charge Ravi Sawani, will probe the matter.

IPL has already been stung in a series of controversies, including the recent sting operation exposing spot fixing of the matches. It would now be interesting to see how things span out with the IPL, after this incident.

Markets move up. Banking stocks gain.

Marketlive.in Administrator — Thu, 17 May 2012 05:03:06 +0000

Markets have seen a pull back on Thursday, rising nearly 1%, following the strong cues from Asian markets. Banking and financial stocks have been the top gainers in the trades.

At 10:25 AM, the Nifty is at 4911, up by 53 points or 1%.

The Bank Nifty index has moved up by 139 points or 1.5%.

Stocks on the upmove include SBI – up by 1.5%, ICICI Bank – up by 1.2%. HDFC Bank is up by 1.8%. PNB is up by 1.4%.

Capital goods & Infrastructure stocks have also been in the forefront. JP Associates has surged 2.5%. Punj LLoyd is up by 3.6%. L&T is however trading a bit soft, after its gains in the previous week.

Bharti aritel, RCOM, Tata Steel, IDFC , Reliance Infra – have all gained nearly 2% each. Powergrid and NTPC is up by 1%.

IT major stocks continue to trade weak.

Other gainers include Dish TV – from the media space – which has surged up by 7.3%.

SUN TV is also trading soft. Jubilant Foodworks is down by 1%. IVRCL Infra is also down by 1.4%.

Gold prices fall to lowest in 2012. Is it time to buy ?

Marketlive.in Administrator — Wed, 16 May 2012 07:16:19 +0000

It is raining gold! Gold prices have seen a sharp recovery, after witnessing a steady upmove during the past few months. The precious metal is less in demand in the global markets, after fresh concerns surfaced about the economic and political turmoil in Greece. Analysts however feel that it can give a good returns of 10-15% in the coming four to six months, as they expect the rupee to appreciate, helping gold regain its position.

Gold prices saw a fall of Rs 260, making 10gm of 99.5% pure metal available at Rs 28,540 in Delhi. Sovereign Gold (for 8gms) fell by Rs. 50 making it available at Rs. 23,650.

The MCX June futures of Gold saw a fall of 0.9% in Wednesday’s trade, taking it to Rs. 27871 for 10gms.

The GOLDBEES ETF on the National Stock Exchange traded at Rs. 2672, down by 0.6% on Wednesday. The same ETF had reached a level of Rs.2809 on 8th Dec 2011. The Kotak Gold ETF (KOTAKGOLD) was currently down by 0.4% to trade at Rs. 2657 on Wednesday.

Massive sell off has been seen in the metal, after the prices fell globally in the international markets. The sell off in the overseas markets has been largely attributed to the deepening economic crisis in Greece and the probable ouster of the country from Eurozone.

The yellow metal dropped to its lowest level this year as there has been a reduced demand as an alternative investment haven. Global prices of the metal had taken a low of $1,547.99 per ounce, the lowest level in 2012. It had earlier rallied to a record of $1,920 per ounce in 2011.

Ishaqzaade sweeps the box office

Marketlive.in Administrator — Wed, 16 May 2012 06:23:46 +0000

Lining up in the queue, after the success stories of Jannat 2 and Housefull 2, the latest offering from the Bollywood – Ishaqzaade has made a remarkable opening across all the segments. The movie grabbed a whopping 4.5 crores during the opening day. Film critics feel that this is one of the biggest money grabbers in the opening day for a movie starring new comers in the industry.

The movie however stood 5th as compared to other blockbusters in Hindi, based on the first day collections. It could be recollected that Agneepath had managed to grab solid 23 crores while Housefull 2 opened with 14 crores collection.

A Still from the movie Ishaqzaade

The movie features Arjun Kapoor and Parineeti Chopra in the lead roles. The movie has received mixed opinions from the film-goers. However many stalwarts in the industry gave a thumbs up to the protagonists. Director Habib Faisal’s work has also been commended by many in the industry. Veteran Actress Shabana Azmi was quoted as exclaiming: “Ishaqzaade is fantastic. Arjun and Parineeti stars for sure. Habib Faisal knows small town UP to the minutest detail .Bravo Habib and Aditya (Chopra).”

‘Kahaani’ is a hit

Nifty tanks down 1.5%. Tata Motors nosedives 6.5%

Marketlive.in Administrator — Wed, 16 May 2012 04:55:13 +0000

Markets have extended losses, falling close to 300 points due to consistent downtrend across the board. The BSE benchmark tanked 297.26 points or 1.82% to 16,030.99 due to fall in 28 components. Meanwhile, the NSE benchmark lost 87.45 points or 1.77% to 4,855.35. The broader markets slipped 1%.

Shares of Tata Motors, country’s largest commercial vehicle plummeted 6% on the back of disappointing sales in April. ICICI Bank and HDFC Bank were down 3% and 2%, while SBI tumbled 1.6%. Housing finance company HDFC too crashed 3%.Capital goods majors Larsen & Toubro and BHEL were down 2-3%. FMCG majors ITC and HUL fell 1-1.7%.

Tata Consultancy Services and Wipro gained over 0.5% due to falling in rupee.

Sterlite, Hindalco, Sesa Goa, Tata Steel, JP Associates, Reliance Infrastructure, Axis Bank, DLF, Maruti Suzuki, BHEL and HDFC were down 1-3% in early trade.

Microsoft’s CEO among the worst

Marketlive.in Administrator — Tue, 15 May 2012 04:56:29 +0000

Steve Ballmer, the software giant Microsoft’s CEO has officially topped the list of bad CEOs of America. The Forbes updated its latest list during the weekend, which terms these CEOs as the executives “who should have already been fired”!

In a recently published web article, Ballmer has been termed as “the worst CEO of a large publicly traded Amercian company today”. Ballmer enjoys a comfortable position of featuring 19th in the top billionaires’ list. Ballmer was accused of giving it up to Apple to reign in the personal segment, with little being done from Microsoft to regain the lost charisma. While Ballmer took his office in the year 2002, the company has been reported to move in tough times with stiff competition from Apple and other tech companies.

Ballmer was accused of taking decisions that had “singlehandedly steered Microsoft out of some of the fastest growing and most lucrative tech markets like the mobile music, handsets and tablets”. In the process, the company’s close allies in the ecosystem – HP, Dell and Nokia – have also been facing brunt of
Microsoft’s weary decisions. Microsoft is now betting big on its latest offering – Windows 8 -which it hopes to bring back the erstwhile glory.

The Forbes list also mentions other CEOs – who should have been already fired. The list includes Edward Lampert of Sears Holdings, Mike Duke of WalMart, Jeffrey Immelt of General Electric(GE) and John Chambers of the Cisco Systems.

Nifty falls 2%. Banks worst hit.

Markets still cautious. Nifty drips below 4900

Marketlive.in Administrator — Tue, 15 May 2012 04:18:51 +0000

The markets have opened marginally lower in trades today tracking weakening Indian rupee and negative global cues. The Sensex has opened at 16,183 and the Nifty is at 4,894 down 14 points.

Grassim is the top loser among the Nifty stocks, down 1% at Rs 2,310. Maruti Suzuki, Axis Bank, NTPC. ONGC, Dr Reddy’s Lab, Bank of Baroda, HCL Technologies, IDFC, Sun Pharma, Ranbaxy and Power Grid have also opened lower. On the other hand, Larsen & Toubro, BPCL, DLF, Cairn India, Asian Painta, Bajaj Auto and BHEL are among the notable gainers.

On the sectoral front, healthcare index is the top loser, down 0.4% at 6,599. Auto, power, FMCG, PSU and teck indices have also opened lower. At the same time, capital goods, bankex, oil & gas, metal and realty indices are trading marginally higher.

The broader markets are also in the red. The BSE mid-cap index is down 5 points at 5,883 and the small-cap index is down 20 points at 6,295.

2 billion dollar loss for a mistake in trade. CIO quits from JP Morgan.

Marketlive.in Administrator — Mon, 14 May 2012 17:34:30 +0000

JPMorgan Chase, the largest American multinational banking corporation has announced a whopping 2 billion dollar loss that has resulted due to a supposed “mistake” in the trade. The news has already led to the worry of analysts and traders worldwide, as the U.S Senators and politicians are pushing for stronger market & banking regulations to prevent such incidents in the future. This has led to stir in the global financial markets. Shares of JP Morgan fell over 9% on the day when the news reports arrived in. Other banking stocks were also severely hit.

”We made a terrible, egregious mistake,” Jamie Dimon, the CEO of JP Morgan Chase, said in an interview that was aired on the NBC. ”There’s almost no excuse for it.” – the CEO was reported as saying. The loss came in the past six weeks. Dimon has said it came from trading in so-called credit derivatives and was designed to hedge against financial risk, not to make a profit for the bank. Dimon termed the trades as “flawed, complex, poorly reviewed, poorly executed and
poorly monitored.”

A piece of the 2010 financial reform law known as the Volcker rule would prevent banks from certain kinds of trading for their own profit. Dimon has said the trading involved in the $2 billion loss would not have fallen under the rule. However Democratic senators Jeff Merkley and Carl Levin have maintained that they intended the law to ban the kind of trades that resulted in the loss for JP Morgan Chase.

The incident has resulted finally in the exit of Ina Drew, the Chief Investment Officer at the bank. It was reported that Drew had offered to resign since the CEO announced the losses. Drew is one among the highest paid officials in the institution. Reports say that she was paid 15.5 million dollars during the past year.

The loss report has come hard against the CEO Dimon, who had been popularly known to be a “good banker” and “master of risk management” since the financial crisis. Dimon had also been opposing some of the harder market regulations proposed. Even as the reports poured in about the losses of the bank, Senators have now pushed for stricter banking regulations. Dimon also serves as the Director of the New York Federal Reserve Bank, which oversees the largest banks of the United States. Mr. Elizabeth Warren, Senate candidate from Massachusetts, has been demanding that Mr. Dimon step down from his position.