Stocks
Nifty, Sensex uptrend may continue – Tuesday closing report
Nifty on track to head higher subject to dips
 
We had mentioned in Monday’s closing report that Nifty, Sensex are headed higher and that Nifty seems to be headed towards 8,000 subject to dips. The major indices in the Indian stock markets opened higher on Tuesday morning based on global cues, but by the end of the day’s trading, the indices closed flat with marginal gains. The Bank Nifty however, closed with a marginal loss. In comparison with last week, the market performance on Monday and Tuesday can be viewed as a recovery rally. The trends in the indices during the day’s trading are given in the table below:
 
 
Key Indian equities indices opened higher on Tuesday in line with a rally in the US and a surge in Asian stocks, but sentiments remained cautious on the back of some not-too-encouraging news on factory output growth, inflation and exports. News from the agriculture sector is positive and is likely to maintain aggregate demand for the economy. Paddy arrival in Haryana is up by nearly 13 lakh tonnes compared to last year, the state's food and supplies department said on Tuesday. "During the current Kharif season, more than 52.92 lakh tonnes of paddy has arrived in the mandis (markets) of Haryana till November 16. During this period last year, 40.09 lakh tonnes of paddy had arrived in the mandis," a spokesman of the department said. Paddy procurement started on 25 September 2015 this year as against the normal procurement starting date of 1 October 2015. The state government agencies have so far procured over 42.03 lakh tonnes of paddy as against the target they had set of procuring 35 lakh tonnes over the whole season.  "Millers and dealers have purchased the remaining 10.89 lakh tonnes paddy arriving in the mandis," the spokesman added. Karnal, Kurukshetra and Kaithal districts are leading in paddy arrival and procurement.
 
Non-life insurance companies are bracing to receive heavy flood claim intimations from their customers in Tamil Nadu, senior industry officials said on Tuesday. "It is too early to give an estimate of the claims received. The rain seems to have just stopped. Only now we will be getting the claim intimations," a senior official of United India Insurance Company told IANS, preferring anonymity. According to him, United India has started getting claim intimations. Industry officials told IANS that most of the claims will be under the fire insurance policy that covers flood and inundation damage apart from fire. Industry officials said comprehensive motor insurance policies cover the risk of flood and inundation and hence those vehicle owners whose vehicles suffer damage due to flooding/inundation can also prefer a claim. For the past ten days, Tamil Nadu has been experiencing heavy rains resulting in water logging in several districts.
 
Leading tyre-maker Apollo Tyres on Monday announced buying German distributor Reifen for Rs322 crore (45.6 million euro). "The acquisition is a strategic fit in growing our European business, as it (Reifen GmbH) will enable us to improve its mix of distribution channels in Germany and Europe," Apollo managing director Neeraj Kanwar said in a statement. As one of the largest tyre distributors with 37 stores and service centres across Germany, Reifen has both offline and online presence in five other European countries -- Austria, Denmark, France, Italy and Switzerland. "Reifen will also increase visibility of Vredestein tyres and ours in the offline and the fast-growing online retail space," Kanwar said. Shares of Apollo Tyres closed at Rs161.95, up 2.69% on the BSE.
 
Foreign institutional investors (FIIs) were net sellers in the day's trade at stock exchanges, whereas the domestic institutional investors (DIIs) were net buyers. According to data with stock exchanges, the FIIs sold stocks worth Rs492.45 crore, while the DIIs bought stocks worth Rs783.02 crore.
 
Sector-wise, fast moving consumer goods (FMCG), healthcare and automobile shares were bullish. On the other hand, banking, consumer durables and information technology (IT) stocks fell. 
 
The S&P BSE FMCG index augmented by 169.79 points, healthcare index gained by 129.22 points and metal index was up by 72.67 points. The banking index receded by 51.38 points, consumer durables index declined by 48.21 points and IT index was lower by 35.69 points.
The top gainers and top losers of the indices are given in the table below:
 
The closing values of the major Asian indices are given in the table below:
 
 

User

Consolidated revenues of 1,243 companies down 5.26% in the September 2015 quarter
Despite the fall in revenues, the consolidated net profit of the 1,243 companies rose 2.64% due to improved profit margins
 
Out of Moneylife’s database of 1,368 companies, 1,243 companies (or 90%) have declared their September 2015 quarter results. The consolidated revenues (standalone) reported by the 1,200-odd companies declined by 5.26% to Rs12.76 lakh crore in Q2FY16, from Rs13.47 lakh crore in Q2FY15. The consolidated operating profit grew by 6.92% to Rs1.94 lakh crore from Rs1.81 lakh crore over the same period. Operating profit margins improved to 15% in the latest quarter from 13% a year ago. The consolidated net profit too increased by 2.64% to Rs1.01 lakh crore from Rs0.98 lakh crore. 
 
Disappointed by the poor quarterly performance and other global factors, the market-cap of these companies too has eroded. The consolidated market-cap of the 1,243 companies declined by 1.61% to Rs91.87 lakh crore as on 13 November 2015 from Rs93.38 lakh crore as on 13 November 2014. Valuations which were considerably high over the past year have eased slightly. In terms of market-cap to net-profit (MC/NP or price-to-earnings), the valuations declined to 22.71 times as on 13 November 2015 from 23.69 times a year ago.
 
Out of the 1,243 companies, as many as, 55% or 684 companies reported a growth in revenues. As many as 30% companies present in the list were able to generate a revenue growth in excess of 10% over the previous quarter.
 
Coming to the Nifty 50—the consolidated revenue of the 50 companies declined by 3.86% to Rs5.24 lakh crore in Q2FY15, from Rs5.46 lakh crore in Q2FY14. The consolidated operating profit increased by 8.84% to Rs1.08 lakh crore from Rs0.99 lakh crore over the same period. Operating profit margins improved to 21% from 18% in the quarter a year ago, thanks to lower input costs. Consolidated net profit too increased by around 6% to Rs0.68 lakh crore from Rs0.64 lakh crore over the same period.
 
Stock prices of the top 50 companies have been on a decline. The consolidated market-cap of the Nifty 50 stocks declined by 6.57% to Rs53 lakh crore as on 13 November 2015 from Rs56.73 lakh crore as on 13 November 2014. The consolidated valuations, defined by MC/NP, fell to 19.33 times from 22 times a year ago.
 
As many as 20 companies of the Nifty 50 report a revenue growth in excess of 10%. Among the pharma companies Cipla, Dr Reddy's Lab and Lupin reported a standalone revenue growth in excess of 10%. Revenue of Cipla grew by 23.4% year-on-year in the September quarter to Rs3,073 crore, while its net profit grew by 21% to Rs407 crore over the same period. Dr Reddy's Lab reported a revenue growth of 16% and a net profit growth of 49%, while Lupin reported a sales growth and profit growth of 11.9% and 7.4% respectively.
 
In the auto segment, Maruti Suzuki reported a revenue growth of 13% at Rs13,933 crore in September 2015 and a net profit growth of 42% over the same period. The operating profit margin of the car manufacturer increase to 16% in the latest quarter from 12% in the quarter a year ago.
 
In the telecom space, while the revenues of Idea Cellular grew by 15% over the year to Rs8,644 crore, the revenues of Bharti Airtel grew at a slower pace of 9.2% over the same period to Rs14,824 crore. Among the software companies, Infosys and TCS reported a revenue growth of 14% and 17.6% respectively. Infosys reported an operating profit growth of 13% while TCS reported an operating profit growth of 19%.

User

The strange case of a £70 bn UK company, in which Sharad Pawar was a director
SGFX Financials came into existence in December 2010, had Sharad Pawar as a director for a few weeks, within months showed an injection of a breath-taking £70 bn and got dissolved in November 2012
 
Updated on 18 November 2015 to include action taken by Mr Pawar against the two directors of SGFX Financials UK
 
Sharad Pawar, leader of the Nationalist Congress Party (NCP), was a director in a UK-registered company SGFX Financials Co UK Ltd, for a few weeks, reveals documents, attributed in twitter to Niraj Gunde by Bhatiya Janata Party leader Dr Subramanian Swamy.
 
According to the UK company filing database, companieshouse.gov.uk, Mr Pawar was appointed as board member of SGFX Financials Co on 13 December 2010 and left the company on 5 January 2011. The filing also notes Mr Pawar's occupation as Minister, Government of India.
 
SGFX Financials Co's incorporation filing as on 13 December 2010, shows Mr Pawar as one of the directors at that time. Besides Mr Pawar, there are two more directors, Sarvesh Narendra Gade and Shahanaz Ashraf Bharde mentioned in the filing. It states total number of shares at 500 with nominal value of £700,755 (British pounds). While Gade held 375 shares, Bharde, who is also mentioned as company secretary, had 125 shares at a nominal value of £1401.55, the statement filed on 13 December 2010 shows. More about the directors later.
 

 
On the day, when Mr Pawar left the company, there is one more filing by SGFX Financials Co, which shows its increase in its number of shares. In this filing, the number of shares allotted is stated as 4,500, takings SGFX Financials Co's total shares to 5,000 at £1401.55 per share. This took the total capital of the company to £7,007,750 (£7.00 million).
 
According to the company filings, 2011 was a very hectic year for SGFX Financials Co. There were a lot of appointments and terminations taking place. But, most important, is that the capital was increasing very rapidly. From £7.00 million British pounds on 5 January 2011, it increased to £700.775 million on 20 March 2011. As if, this was not enough, again the capital zoomed to £70.077 billion as on 29 June 2011. In short, as soon as Mr Pawar left the company on 5 January 2011, within next five months, the capital of SGFX Financials Co grew one-lakh times to £70.077 billion from a mere £700,755. Who put in this money? Where did this money come from? Where did it vanish?
 
 
Following an application from SGFX Financials Co, the UK Registrar of Companies issued a notice for dissolving the company on 14 August 2012. Three months after that SGFX Financials Co was termed as a dissolved company.
 
Coming back to SGFX Financials Co directors, Mr Gade, as per information available in public domain, was director of three companies registered in the UK. He was appointed director SGFX Financials Co twice. He was also director of Angel Investments Co UK Ltd and Online Currency Exchange of UK Ltd. Mr Gade, born in January 1985, has mentioned his occupation as businessman, as per the information. What is interesting is that all these three companies, in which Mr Gade was a director between June 2010 and May 2013, are now dissolved. 
 
Ms Bharde, another director and company secretary of SGFX Financials Co, was born in March 1975. Similar to the Mr Gade, she too was director of Angel Investments Co UK Ltd, according to information available in public domain. 
 
 
Another interesting factor in this entire episode is that all the companies registered and dissolved in the UK have their namesake companies registered in India with the same directors. For example, there is a company registered on 5 July 2013 as Online Currency Exchange of India Ltd (U74900MH2013PLC245277) with an address from Vashi Infotech Park in Navi Mumbai. Mr Gade is the common director in both the Indian and UK registered company. Only difference is that in the Indian entity, Ms Bharde’s name is mentioned as Shahanaz Sarvesh Gade. In addition, there is one more director, Razin Ashraf Bharde, who seems to be a brother of Ms Shahanaz.
 
 
Even SGFX Financials Co of UK has its namesake in India registered as SGFX Financials Ltd (U65999MH2011PLC216863). This company has three directors, all associated with SGFX Financials Co of UK. Besides Mr Gade and Ms Bharde, there is Chidambareswara Rao Kalla who is mentioned as director in the Indian entity. Mr Rao Kalla was director of SGFX Financials too in the UK.
 
Update:
Sharad Pawar has denied having anything to do with SGFX Financials. According to a report in The Economic Times newspaper, he has charged Sarvesh Narendra Gade and Shahanaz Ashraf Bharde for falsely and fraudently using his name as a director.
 
Mr Pawar also filed a complaint against Mr Gade and Ms Bharde at the Economic Offences Wing (EOW) for adding his name as a director in SGFX Financials UK. In the complaint, he named both Mr Gade and Ms Bharde as the two individuals who 'falsely and fraudulently' submitted his name without his knowledge and incorporated the firm, says another report from the Economic Times.
 

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COMMENTS

Rajendra mandhania

1 year ago

It is very curious.From where money came.If it came by chequ from which bank and whose account.After dissolution how it was settled :payment to creditors,who are they,payment to shareholders,who and where.

No answers and it is getting swept under carpet already

sysman

1 year ago

ecomic times has picked-up Moneylife story today -

How a Mumbai couple created a Rs 7 lakh crore dubious firm SGFX Financials

http://economictimes.indiatimes.com/news...

REPLY

sysman

In Reply to sysman 1 year ago

Typo - read economic times and not ecomic times. Though many times headline provide comic relief.

sysman

In Reply to sysman 1 year ago

The report says that Mr. Sharad Pawar has filed a complaint with EoW that his name is used without his consent.

But the "Yaksh Prashan" still exist about creation, storage, usage and disposal of GBP 70 billion (eq to INR 7 lakh crores). And no body notices this pile of money unless ML exposed it.

Ashoka.kalgude

1 year ago

Pawar was director just to open swiss bank account after wards he is not. then Money transfer happened it is so huge defensibly not ignored by British Authorities Swiss and Indian, but they put nelson eye. Big quesction is How this ill gotten money transferred from India? How many scams are related to this 7 lakh crores. and How many more there there un-earthed. India ED knows all but it is corrupt to core and slaves of masters. What Party of difference is doing under helms of Arun JaiItaly.

Ashoka.kalgude

1 year ago

Why Indian journalist fixated with English Pounds and American Dollar and billion and million? Why cant it be in crores and rupees?

Vikram Dhotre

1 year ago

It will be better that India's politicians incorporate companies in India itself, keep investing and generate much needed employment!

tikku

1 year ago

Politics is the source of huge money and Pawar is in politics for decades. He seems to have successfully cleaned his ill gotten money into white.

Mahesh S Bhatt

1 year ago

Sir what's strange in India.

Lalu convicted DISQUALIFIED MP wins Bihar

Sukhram earlier before conviction said that someone left bagfull of $300000 outside his Shimla Bunglow.

Truth is stranger than fiction & hard /costly to prove in courts especially in tolerant India.

1992 Harshad Mehta scam SBI official got convicted after 23 years only.

Politicians enjoy State IMMUNITY under constitution.

Hence extra judicial people judgements are atimes expideted from Mahatma Gandhi Indira Gandhi Rajiv Gandhi.

Sharad Pawar is lucky to have been slaped once in 40 years of his glorious adminstrative career.

Its Media entertainment for 2 days enjoy. Mahesh

Hemlata Mohan

1 year ago

Ab initio, this whole affair seems shady. I am totally disappointed - when small fries are hunted down for KYC/AML etc, how such a big amount has not been under the lens? And what is the FSA doing in UK? They are the ones who are part of the FATF recommendations?

sysman

1 year ago

I am not able to digest some of these facts even with Hazmola.

1. A company gets equity worth GBP 70 billion. This is more than 3.5% of GDP of UK (which is about GBP 2 trillion (nominal) or even GBP 1.7 tn (PPP)). This money must have come through banking channels; must have stayed in banks and must have gone using banking channels. This big amount should be noticed by all including Bank of England, Police, other regulators - whether the money came is clean money; used for legal purposes and remitted for legal purposes. Even financial press must highlight it. This is FDI for UK.

2. People come and go as directors. Why? One Mr. Jitu Jeremiah joined as director thrice and terminated twice. Further, just after Mr. Jitu's appointment, share capital was increased. Is there any link?

3. What relations Mr. Sharad Pawar has with company? Why he joined and left after 3 weeks similar to Mr. Jitu.

4. Where the money was utilised? Utilisation of GBP 70 billion anywhere will change the economy of the country, reason and even the world. For comparison GBP 70 bn = INR 7 lakh crores. This is about 40% of total budget expenditure (both plan + non-plan) of union budget of Govt of India.

5. What happened to money (GBP 70 billion), when the company was dissolved? How it was used or appropriated or remitted out (if so, where).

6. Every country and interpol keeps track of all big transactions and money remittances. The big transaction is normally defined as USD 1 million or more. In this case, it is USD 105 billion (current rate GBP/USD). Where the money has gone?

7. Was is part of black money - which NaMo is hunting?

8. A GBP 70 bn equity capital company and all it's directors having address of rent-a-address joint.

Something strange seems to be happening with UK department of companies, Bank of England, UK Police and even interpol.

Even, in case of nationality issue of Mr. Rahul Gandhi, the companies office is giving unsolicited lame excuses.

Kya Daal main kuch kaalaa hai? Ya, puri daal he kaali hai?

REPLY

K. M. Rao

In Reply to sysman 1 year ago

It is only commoners like us who will have furnish details of KYC telephone bills whenever we change our residence as a proof. But the big shots can escape nonchalantly !

Arun

1 year ago

After Rahul, Pawar. How many such cases might be? Do a parliament JPC be formed to investigate?

manoharlalsharma

1 year ago

MAHARAJA of GOOD TIMES.

Dushyant Thakker

1 year ago

145-157 ST JOHN STREET is a PO Box in London. Anyone can get this registered address as PO Box by paying GBP 45 as fees. It belongs to incorporation agent - Companies Made Simple. These guys have a package offering where anyone sitting in India can for a UK company + UK bank account and they will manage show on your behalf. This company also helps anyone set up company in exotic tax havens.

Now SGFX Finance Limited is also incorporated in India with same directors - Gade & Bharde. Interestingly their email address belongs to taxexpert.in which looks like a tax consultancy. taxexpert.in website is now disabled.

suresh n d

1 year ago

please request the publisher to bring it more public view.Also let me know how I can participate in bringing to more public view.
Thanks,
Suresh.

REPLY

Arun

In Reply to suresh n d 1 year ago

try to circulate, not many media house will do as they would like to have their cut from such news.

Manohar salunke

1 year ago

Thanks for publish information which is lesson for us. But i not found logic of in this issue. Kindly post your comment and give us fertilizer to us.

vnrao

1 year ago

what is the use of these iformation when govt not able to do anything except filling up the pages

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