New Delhi: The National Stock Exchange (NSE) today said it has started mobile trading for registered clients, a move that would make trading simpler for the customers, reports PTI.
The service will enable member brokers to only go through the regular compliance before facilitating their clients for mobile trading, NSE said in a statement.
"This is another facility the exchange is providing to the large universe of investors, to make trading simpler and easily accessible to clients on the move. We expect that nearly five million investors would benefit from this move," NSE CEO and MD Ravi Narain said.
NSE claimed that for the first time an Indian exchange would provide such facility free of cost to its clients, through the brokers who have enrolled for "NOW" (the software which is being used by a majority of the NSE brokers).
Earlier, just a few member brokers had the option of providing this facility to the clients at their own cost, it added.
In September, the country's oldest stock exchange BSE had also launched mobile-based trading.
With NSE's new service, clients will be able to trade in the cash, derivatives or currency market through their mobile phones, while travelling anywhere in the country or abroad.
The clients' mobile phone will be connected to the Internet, then to the NOW platform, which is connected to the exchange, it added.
The service will provide a wide range of facilities to the investors where they can see the "Market Watch" page on his or her mobile screen. This will display all the available indices and constituents of these indices.
With the earnings season almost behind us, CLSA is one of the first to come out with a strategy report. It says India Inc is moving out of the early stage of the growth cycle and that with a sharp rise in working capital and pickup in capex, free cash flow is getting squeezed
In its report to clients dated 8 November 2010, independent brokerage firm CLSA says that with mid-year disclosure of balance sheets available for the first time, it analysed trends based on data for 75 companies that make up 85% of BSE 500 assets. "Over half these companies saw a rise in net working capital days in 1H. While this could be partly attributable to seasonality, even on a y-o-y basis, growth was 42%. As a result, cash flow from operations has fallen 26% y-o-y."
Another squeeze on cash flow seems to be a pick-up in investment. "Investment is turning up, with capex rising 20% y-o-y for our universe. As a result, free cash flow has been squeezed to just 25% of that in 1H FY10."
Not only has accretion to cash significantly lagged overall balance sheet growth, there is also strong evidence of re-leveraging too, says CLSA and points out that in the first half gross debt (of the 75 companies it analysed) rose 22%.
However, it is not time to worry yet. The brokerage believes that return on capital will remain healthy as asset turnover ratios have not peaked yet. Even so, the pressures on margins and the higher balance sheet growth show that the Indian growth cycle is moving out of the early phase of recovery.
In the second phase, says the report, which is near the top of the boom, profits begin to struggle. The labour market tightens, interest rates tend to move up and demand stagnates. This in turn leads to margins being squeezed and profits tumbling (stage 3). Eventually, firms reduce capital expenditures and a downturn begins.
CLSA believes that growth will moderate in the second half. "While we see +30% y-o-y in consolidated earnings for the Sensex in 1H FY11, growth will moderate in 2H (our full year forecast is c.27%) and FY12-13 (18-2% Sensex EPS growth)."
The report points out that in the quarter gone by, it saw strong performances from oil & gas, banks, and capital goods and that there was an even spread of positive surprises and disappointments. Rising wage costs were something that stood out in 2Q results. "One can see acceleration in employee cost (up 23% y-o-y in 2QFY11, versus 2%-3% during FY10)."
Zee, Bharat Forge, BEL and Dr Reddy's stand out on free cash generation, said the report. Companies where cash flow from operations has substantially lagged profit in the last 12 months include United Spirits, Godrej Consumer, Sterlite Industries, Voltas, Tech Mahindra, and Wipro. Companies with biggest increase in capital expenditure during 1HFY11 include Thermax, Grasim, Bharat Forge, Sun Pharma, Exide, TVS, and Sintex. Companies with biggest fall in capital expenditures during 1HFY11 include Sesa Goa, Asian Paints, DRL, Petronet LNG, Ashok Leyland, and Hindustan Unilever. Companies with negative FCF included SAIL, MRPL, Power Grid, Idea, United Spirits, Ultratech, and Indiabulls Real Estate. Companies where debt levels went up substantially were Hindustan Zinc, Sesa Goa, Godrej Consumer, Tata Chemicals, Sun Pharma, BHEL, Idea, and Jindal Steel.
(This article is based on secondary research. The report is for information only. None of the stock information, data and company information presented herein constitutes a recommendation or solicitation of any offer to buy or sell any securities. Investors must do their own research and due diligence before acting on any security. Some of the opinions expressed in this article are the author's own and may not necessarily represent those of Moneylife).
Mumbai: The Reserve Bank of India (RBI) has expressed concern over the falling credit offtake, which slipped to a poor 16.6% in the last fiscal, reports PTI.
Noting that there has been steady decline in credit growth since FY04-05 when it had touched a high of over 30%, credit offtake declined to a low of 16.6% in the fiscal ending March 2010, RBI said in its statutory Report on Trend and Progress of Banking in 2009-10.
It further noted that the slipping credit growth was also a reflection of slowing deposit growth.
"Notwithstanding the signs of recovery of the economy and a low interest rate regime, on a year-on-year basis, bank credit growth registered a slowdown in 2009-10. However, on an intra-year basis, there were signs of a pick up after November 2009, as economic recovery became more broad-based," the central bank report added.
On the international liabilities and assets of domestic banks, it said both have registered accelerated growth in 2009-10. There was an increase by about 17% in the international liabilities of banks in the reporting period, which far exceeded the growth of 7.4% in their international assets.
"The surge in international liabilities during the year was primarily due to inflows through ADRs/GDRs and equities of banks held by non-residents," the report said.
However, there was a fall in the inflows of FCNR(B)/NRE deposits in the reporting period following a steady fall in the benchmark Libor during the year, resulting in a fall in the effective rate of interest payable on FCNR(B)/ NRE deposits.