Jeevan Anmol 1- Term Insurance Policy from LIC

Term insurance is often the most inexpensive life insurance solution. Term insurance is recommended by most of the investment and financial experts.

Anmol Jeevan 1 - Plan Details:
Life Insurance Corporation Of India’s Anmol Jeevan-I (Plan No. 164) is a unique plan of assurance, by far the cheapest policy to buy; cheaper than even a whole life policy to start with. Anmol Jeevan-I is a pure term cover provides only life cover unlike endowment and money back policies which have a built-in saving element too.

* Term - 5 to 25 years

* Min/Max sum assured - Rs 5,00,000 to Less than 25,00,000 .

* Early age - 18 to 55 years

* Maturity age - 65 years

* Premium payment frequency - Yearly, Half- Yearly and Single premium

* Riders available - No Riders

* Death benefit - Sum assured

* Maturity benefit - No benefits

* Surrender value - No surrender

* Withdrawal facility - N.A

* Tax benefit - Tax benefits on premiums paid and benefits received under the policy, as per the prevailing Income Tax Laws

---
For any Policy requirements do call us...

Buy cosmo films for few days with target of 170

Looking at the Charts of Last 2 days trading and all the volumes at 150Rs. Level

We are bullish on Cosmo Films with short term target of 168-17o Rs.

One can also watch and buy any other Films stocks like-Polyplex or a Uflex

Brokerages bullish on Eros International Media

The Rs 350 crore IPO of Eros International Media, part of the Eros Group, which is a global player within the Indian media and entertainment sector, has been subscribed nearly 50%, as per data available on NSE website.

It has fixed a price band of Rs 158-175 per equity share for the issue, which closes on September 21, 2010.

Why are brokerages bullish on Eros International Media?

Experts as well as brokerage firms look bullish on this issue and advised subscribing the same. Investment Advisor, SP Tulsian says, the issue seems to be fairly priced. "Those looking to take an exposure in this sector, can go for it!"

KRChoksey says, "Considering potential growth in Film industry and expanding exhibition platform in India, we see strong opportunity for increase in theatrical revenues, thereby providing opportunity for movie content and distribution players. Also we are sanguine about rapid analogue to digital migration and emergence of new digital media platforms which have provided the opportunity to de-risk the movie business model through pre-sale of rights. Eros with 30 years of experience in acquiring movie rights and strong movie distribution network in India is expected to largely benefit."

"In addition, Eros has partnership agreement with Eros plc which gives ready exposure to international revenues. On upper price band, the issue is priced at 13.8x of consolidated FY11E EPS of Rs 12.6 which is at significant discount compared to its closest peer UTV Software, trading at FY11E P/E of 33x. We recommend a subscribe to Eros International Media IPO," according to its report.

Loans may get costlier, deposits attractive as RBI hikes rates

Home, auto and corporate loans are likely to become expensive, with the RBI on Thursday raising key short-term lending and borrowing rates by 0.25 and 0.50 percentage points, respectively, to combat inflation.

In its maiden mid-quarterly monetary policy review, the central bank upped repo, under which it lends short-term funds to banks, to six percent and reverse repo, the short-term borrowing mechanism, to five percent.

The hike in the policy rates, the fifth this year, to cool inflation that is hovering at 8.5 percent may lead to an increase in commercial lending and deposit rates.

"In early October, interest rates could be revised and chances are there it could be revised upwards," state-run Bank of Baroda's Executive Director R K Bakshi said.

Bankers said they will hold on to the rates till September 30, which is the half yearly closing of the banks.

High interest rates could temper demand for loans and thus curtail consumption, while on the other hand fixed deposits could earn better returns.

The government expects inflation to cool to six percent by December.

"Rate of interest may have to go up. Pressure is there to increase rates in the near term," Bank of Maharashtra CMD Allen Pereira said.

Short-term funds would get little costlier and there is possibility that the short-term (deposit) rates could also go up in the future, bankers said.

Central Bank of India CMD S Sridhar said, "Bankers will adopt a calibrated approach. The examination of interest rates is on cards as cost of funds for banks is increasing."

However, a few bankers ruled out increase from October 1 as they will wait for further policy action of RBI.
"EMIs are not going to go up from October 1. The quarter percentage increase in policy rates were expected. Further rate hikes by bank will depend on the next policy review," HDFC Chief Executive Keki Mistry said.

He said a further increase in rate in the second quarter review in November could lead to higher rates.

Following an identical hike in repo and reverse repo rates in July, 40 banks raised deposit rates and 29 lending rates.

The RBI too wants deposit rates to go up as there is a need to make the real interest rates, the difference between inflation and deposit rate, positive. "...real interest rates need to move in the direction of encouraging bank deposits", the central bank said.

Industry chamber FICCI also expressed the fear that rising interest rates would hit business.

"Increasing repo rate is another signal of rising the cost of borrowing...hopefully it is the last such...restrictive action towards growth. We hope to see this restrictive policy eased in the next round", said FICCI secretary general Amit Mitra.

Expressing concern over the RBI move, PHD Chamber said, "This will adversely impact the cost of borrowing by the industry from the banks, especially by the SMEs. It may also the cost of home loan as well as consumer loans."

For RBI the major concern in inflation as "headline inflation remains significantly above the trend of 5.0-5.5 percent in the 2000s.

"I think it (the RBI move) is in the right direction because now the corridor (difference between repo and reverse repo) has been narrowed down and still inflationary pressure is there in the system," Finance Minister Pranab Mukherjee told reporters here.

The 100 basis points gap between repo and reverse repo marks the return to the pre global financial meltdown level.

Planning Commission Deputy Chairman Montek Singh Ahluwalia said: "This (hike) is in the right direction and on the expected lines. This is not going to affect the economic growth."

Government data last month showed that the economy grew by an impressive 8.8 percent in the April-June quarter, driven by a robust manufacturing sector.

However, the central bank wondered if the industrial expansion data was reflecting the reality.

"Although the year-on-year growth rate for the first four months of the year remains robust at 11.4 per cent, the high volatility over the past two months raises some doubts about how effectively the index reflects the underlying momentum in the industrial sector," RBI said.

The data on the Index of Industrial Production (IIP) showed that industrial growth accelerated to 13.8 per cent in July from 7.2 per cent a year ago, belying all expectations of slowdown.

RBI described the data as volatile since the previous month it was just 7.1 percent, which was further revised down to 5.6 percent, analysts said.

The comments by RBI also assume importance, since the Government itself committed a blunder while computing GDP data from the demand side, and revised it by around three times, a day after.

Advance tax numbers indicate good show by finance, auto cos

Advance tax collections for the second quarter, July-September, 2010-11 indicated Wednesday that while sectors like banking, finance and auto have done well, cement and pharma were down as compared to last year's numbers.

As for individual corporate, Mukesh Ambani-led Reliance Industries and Larsen & Toubro paid Rs 1,306 crore and Rs 280 crore respectively, higher than Q2 FY10.

RIL had paid Rs 1,157 crore in the year-ago period, indicating that it is steaming ahead. L&T's had paid Rs 210 crore in Q2 FY 10.

Similarly, Kumar Mangalam Birla-owned Hindalco's tax outgo doubled to Rs 140 crore.

However, it was a mixed bag from the Tata Group as Tata Power Rs 60 crore and Tata Motors Rs 95-crore paid less to the exchequer vis-a-vis last year.

Country's financial capital Mumbai, which contributes a major chunk of direct tax collection, clocked over 13 percent growth, which a top Income Tax official said was below expectations.

"Our expectations were more...some companies in sectors like cement are not showing good numbers," chief commissioner of Income Tax Mumbai, PP Srivastava, told PTI here, after the advance tax collections for September quarter ended Wednesday.

The Mumbai region of Income Tax Department has been assigned a direct tax collection target of Rs 1,50,480-crore for the current financial year, which is 35 per cent of the all India collection target of Rs 4,30,000-crore.

Asked if the target (Mumbai circle) would be met, Srivastava said that "we are hopeful. However, we will have to take extra measures to achieve it."

IT-major Tata Consultancy Services paid Rs 260 crore in advance tax as compared to the previous year's Rs 220 crore, while the payment by Tata Chemicals remained unchanged at Rs 60 crore.

Driven by high growth, advance tax payments in the auto sector were good.

Bajaj Auto paid Rs 243 crore in Q2 FY11, as against last year period's Rs 170 crore, while Mahindra & Mahindra paid Rs 158 crore, up from Rs 112 crore, the source said.

Barring some names, the banking and financial sector witnessed high tax payouts, led by State Bank of India (Rs 1,924 crore), ICICI Bank (Rs 600 crore), HDFC Bank (Rs 600 crore), Central Bank of India (Rs 206 crore), Union Bank of India (Rs 308 crore) and Yes Bank (Rs 105 crore).

Home-loans lender HDFC shelled out Rs 400-crore this quarter, as against Rs 320 crore in the year ago period.

Life Insurance Corporation's payout increased by Rs 128 crore to Rs 1,067-crore, while in the case of General Insurance Corporation, it almost doubled to Rs 92-crore.

The sector which appears to have suffered the most in Q2 FY11 since last year is cement, as payouts by a majority of companies in this segment have fallen sharply.

From last fiscal's Q2 of Rs 150 crore, Ambuja Cement's advance tax payment fell to Rs 90 crore, while UltraTech's payout more than halved to Rs 60 crore.

Cement major Lafarge's advance tax payment declined from Rs 67 crore to Rs 40 crore. In the case of ACC, its advance tax payment plummeted to Rs 60 crore from last fiscal's Q2 of Rs 150 crore.

Consumer electronics major, Videocon, saw its advance tax outgo increase to Rs 35 crore, from last year's Rs 30 crore while state-owned fertiliser company RCF showed a decline to Rs 19 crore from Rs 33 crore in Q2 last fiscal.

Biscuit maker Parle saw its advance tax outgo increase by Rs 3 crore to Rs 12 crore this quarter and Johnson and Johnson paid Rs 22 crore, up from last year's Rs 18 crore.

Two pharma majors -- Lupin and Cipla -- have registered lower payouts at Rs 45 crore and Rs 65 crore respectively as compared to Rs 50 crore and Rs 75 crore, respectively, in the year-ago period.

In the media and entertainment space, Zee Entertainment's payout almost doubled to Rs 60 crore from Rs 32 crore in the year-ago period.

EPFO raises PF interest rate to 9.5% for 2010-1

Ahead of the festival season, the retirement fund manager EPFO's Trustees Wednesday raised interest rate on provident fund deposits to 9.5 percent from

8.5 percent now, benefiting nearly 4.71 crore employees of both public and private sectors.

"We have decided to give 9.5 percent rate of interest to subscribers during the current financial year on their contributions. For over four crore subscribers this is a big gift from EPFO Trustees," Labour Minister Mallikarjun Kharge told reporters after meeting of the Trustees.

The decision would put an additional burden of Rs 1,600 crore on the EPFO, the minister said, adding that it would be met from the surplus of over Rs 1,731 crore in the interest suspense account.

The decision, according to bankers, could see diversion of savings towards Provident Funds as the difference between the fixed deposit rates and PF rates would encourage savings towards the latter.

Currently, the State Bank of India and the ICICI bank give maximum interest rate of 7.75 percent on long term fixed deposits for up to 10 years.

Commenting on the decision, a leading industry chamber Ficci said this could put pressure on interest rates of competing saving instruments and would have negative implications for the government finances.

Assocham said that high rate of interest rate will not be sustainable either by the EPFO or by exempted trust on the basis of investment pattern decided by the government. "It is doubtful that this high rate of interest could be sustained," the industry body said.

The EPFO Trustees have said that they have decided not to invest in the stock markets and would continue to follow the existing investment pattern.

"We had received a letter from the finance ministry asking for parking of a portion of EPFO funds in the stock market. We have received huge opposition from the CBT members who oppose the idea of investing in stock markets," Kharge said.

The EPFO maintains a huge corpus of over Rs 3,00,000 crore, whereas all recognised PFs managed by it have accumulated funds to the tune of Rs 2,00,000 crore. About the inoperative accounts, the Minister said that the Board has decided that no interest would be credited in such accounts with effect from April 1, 2011.

At present, around Rs 10,000 crore of unclaimed money is lying in more than 2.9 crore inoperative accounts of the EPFO. About 1.05 crore inoperative accounts, which constitutes 34.58 percent of all such subscribers, have less than Rs 500.

All those accounts where no subscription has come for three years are inoperative accounts. EPFO spends about Rs 50 crore on maintaining these accounts.

Kharge said, "EPFO would stop crediting interest in all inoperative accounts which have not received contributions for the past 36 months with effect from April 1, 2011. But all holders of such accounts would be allowed to withdraw their money."

About the overhauling of the Employees' Pension Scheme 1995 managed by EPFO, the minister said, "We have deferred the decision and it would be discussed in the next meeting."

"We have circulated the report of the expert committee among all members and it would be discussed only after they read it," he added.

The government constituted committee, headed by former Additional Labour Secretary SK Srivastava, has proposed a provident fund-cum-annuity scheme in which two accounts would be maintained for each member -- a PF account (PFA) and an Annuity Contribution (or pension) Account (ACA).

The expert group had submitted its report last month.

The decision to raise the interest to 9.5 percent for this fiscal was in general welcomed by the trade unions.

However the Bhartiya Mazdoor Sangh secretary and an EPFO trustee BN Rai said that had the past accounts checked thoroughly earlier the hike could have been announced well in advance.

"The accounts are not being maintained correctly. The amount of over Rs 1,700 crore found in the Interest Suspense Account, could go up even further if these are checked properly," he added.

All India Trade Union Congress General Secretary and a Parliamentarian Gurudas Dasgupta welcomed the raising of EPF interest rate by a percentage point. It a positive move, he said. National vice-president of Indian National Trade Union Congress Ashok Singh also welcomed the move.

Secretary Centre of Indian Trade Unions, Dipankar Mukherjee said, "As these are social security schemes, there should be budgetary provisions on giving interest rate rather than depending on EPFO corpus."

RBI may raise key rates tomorrow to tame inflation: Experts

RBI is likely to raise policy rates by up to 25 basis points in its mid quarterly policy review Thursday to tame inflation, which is still ruling near the double-digit mark, said experts.

Inflation, as per the revised index was 8.51 percent in August, although it was 9.5 percent according to the old index.

Even finance minister Pranab Mukherjee, while responding to decline in inflation, which under the new series fell by 1.3 percentage points during August, had said, "there is no room for complacency... we must continue to be vigilant and be prepared with the instruments of fiscal and monetary policy to use them as and when the need arises."

Citigroup said in its research report said, "given trends in both macro and sectoral data, coupled with the RBI saying that policy rates are still far from a normal position, we expect the RBI to raise both repo and reverse-repo rates by 25 bps in its review on September 16."

The government, Tuesday, came out with a new wholesale price index series that measured inflation in August at 8.5 percent based on 2004-05 prices.

Although the August figure is lower than that of July which was at 9.8 percent, experts believe the supply and demand side pressures still remain and RBI should hike its short-term lending (repo) and borrowing (reverse-repo) rate to control money flow.

RBI deputy governor Subir Gokarn also expressed concern, saying "the inflation rates that the economy is now experiencing, both from the supply and the demand sides, are clearly a matter of great concern. It is incumbent on the government and the central bank to use all the means at their disposal to rein inflation."

This is the first time that the Reserve Bank is coming out with a mid-quarter economic policy review.

"The RBI will go in for a rate hike as robust growth in industrial output and healthy economic growth would give the RBI enough cushion to make money expensive," Deloitte Principal Economist Shanto Ghosh said.

The RBI has raised interest rates four times this year, upping key policy rates by 100 basis points as it tries to combat high inflation in Asia's third-largest economy.

In its first quarter monetary review in July, the central bank had raised short-term lending and borrowing rates by 0.25 percent and 0.50 percent, respectively.

Following the increase, the repo rate stands at 5.75 percent and the reverse repo rate at 4.50 percent.

India's GDP grew by 8.8 percent in the first quarter, against 6 percent in the April-June period last fiscal.

Furthermore, industrial output expanded by 13.8 percent in July from 7.2 percent in the corresponding month last year.

Analysts see bullish days ahead for Sensex

With the BSE benchmark Sensex breaching the 19,000-level and still going strong, analysts believe that Indian markets have entered a bull phase and persistent FII inflows may push the index past the 20,000-mark in the coming days.

"Investors are sitting on huge cash piles and as the market is rising, they cannot sit sideways for long. A large chunk of cash is coming in the market and in such a scenario, hitting the 20,000-mark seems easy," CNI Research CMD Kishore Ostwal said.

"By October the Sensex is likely to cross the 20,000-mark and by November, I see it at the 21,000-level," Ostwal added.

The Sensex had touched an all-time high level of 21,206 in January, 2008, a year that saw the benchmark index of the Bombay Stock Exchange record an over 80 per cent jump.

Echoing a similar opinion, Network Stock Brokings Head of Institutional Sales & Strategy Prakash Diwan said hitting the 20,000-level would not be a big deal in the coming days.

"The market is driven by strong liquidity and FII inflows are expected to continue in the local stock market. Hitting the 20,000-level by Sensex would not be a big deal. Soon the Sensex will be able to reach that level," he said.

On Monday, the Sensex zoomed by more than 408 points to cross the 19,000-level for the first time in 32 months.

"Investors have faith in the India growth story and in the coming days, the Sensex will touch new highs," Diwan added.

The index has risen 122.3 percent so far this year, from a low of 8,701.07 in October, 2008, on account of the global economic crisis.

"I do not see any reason why markets should not move up. It is a liquidity-supported rally and unabated FII inflows would further push local markets," SMC Global Securities Equity Head Jagannadham Thunuguntla said.

"India is one of the hot spots for overseas investors and those fund houses, which were still watching the situation, now are interested to pick up local stocks as global equities are rebounding," Thunuguntla added.
The Sensex took just five days to reach the 19,000-level from the 18,221.43 mark. On September 3, the index had settled at 18,221.43.

Three banking stocks -- SBI, ICICI Bank and HDFC -- accounted for about 70 per cent of the Sensex's rise from 18,000 to 19,000.

"Banks are on a rising streak on optimism that lending will pick up in a fast-growing Indian economy and that they are well capitalised," IIFL Vice-President (Research) Amar Ambani said.

"Banking stocks jumped as regulators gave firms more time than expected to meet capital requirements (the Basel norms)," another analyst added.

However, equity analysts did not rule out a correction in the markets, as they felt stocks are overvalued.

"Investors should take cautious approach about the market this time. A fall from this high cannot be ruled out," Unicon Financial CEO Gajendra Nagpal said.

The BSE benchmark Sensex was up by 153.39 points at 19,361.72 Tuesday, with just an hour left before the close of trade.

Inflation in August at 8.5%; FM says no room for complacency

The government Tuesday claimed a 1.37 percentage point dip in the politically sensitive inflation, as a new series measured it at 8.5 percent in August, but the Finance Minister said there was no room for complacency.

Although the drop is substantial, when measured using the old series, inflation during the month under review works out to 9.5 percent, down from 10 per cent in July.

"Even though the good news of lower inflation is reported today, yet there is no room for complacency... (government) will continue to bring it down further," Finance Minister Pranab Mukherjee said in a statement.

Prime Minister Manmohan Singh had earlier this year said he expects inflation to drop to 6 percent by December.

Mukherjee indicated Tuesday that the RBI could take some action in its mid-quarter review of monetary policy on September 16.

"Some international commodity prices have shown some recent inflationary tendency, especially the wheat prices worldwide... (which) have risen sharply following production shortfall in Russia and Ukraine," he said.

The fall in August inflation, however, came on the back of lower prices of food items like vegetables, cereals and pulses and sugar.

Mukherjee further said that "we must continue to be vigilant and be prepared with the instruments of fiscal and monetary policy to use them as and when the need arises."

Releasing the new series, Commerce and Industry Minister Anand Sharma said, "We hope that it (inflation) will come down. There are various steps taken by the government. Food inflation has been a cause of concern."

The new inflation series with 2004-05 as the base year has 241 more items than the old series with 1993-94 as the base year, which only reflected the price rise in 435 articles.

Edibles and non-edible items widely used by the middle class, like ice-cream, mineral water, microwave ovens, washing machines, gold and silver are reflected in the new WPI inflation series.

According to analysts, overall inflation, which is still close to 9 percent, may prompt the RBI to increase key policy rates by 25 basis points during its review later this week.

Deloitte Principal economist Shanto Ghosh said, "In an absolute sense, inflation is high. Unless there is significant softening in prices across the board, it will be a tough challenge for the government to meet the 5.5 percent inflation target."

M&M to launch portfolio of bikes by October

Mahindra & Mahindra plans to launch a portfolio of bikes between 100-125 cc, 150c and 250-300 cc by September end or early October. M&M says that these bikes are designed Engines Engineering Company it acquired in 2008.

The company plans to use its existing dealer network to market bikes and hopes to compete with Hero Honda’s dominance in the 125 cc segment inorder to take advantage of the absence of new launches fm Hero Honda in the 125cc segment. M&M Two wheelers have more than 370 dealerships across India.

RBI panel to review repo, reverse repo process

The Reserve Bank of India (RBI) on Monday said its committee on monetary policy will review the operating procedure with respect to repo, reverse repo auctions; width of the interest rate corridor; and frequency and timing of reverse repo and repo auctions.
In its quarterly policy review in July, the RBI had announced its plan to set up a panel to monitor the operating procedure of the monetary policy, including liquidity adjustment facility.
Rate corridor is the spread between repo rate -- the rate at which the RBI infuses liquidity -- and reverse repo rate -- the rate at which liquidity is drained out.
The panel will look at monetary policy in the light of global practices and domestic experience.

The terms of reference include:
* whether there is a need for a rate corridor at all
* whether its width should be fixed or variable
* what are the tools necessary to enable the corridor to function efficiently.

The committee will be headed by Deepak Mohanty, executive director, RBI.
The panel will also compare its monetary policy with operating methods of other central banks, the RBI said.
The RBI had introduced repo and reverse repo rates in June 2000 when it had started the liquidity adjustment facility.
Besides interest rates, other tools such as cash reserve ratio (CRR), open market operations (OMO) and market stabilisation scheme (MSS), have served the monetary policy management well, the RBI said.

"However, India's increasing integration with the global economy, large volatility in capital flows and sharp fluctuations in government cash balances have posed several challenges to liquidity management by the Reserve Bank, particularly in effectively signalling the monetary policy stance," the RBI said, explaining the rationale behind forming the panel.
The committee will also the assess the role of Bank Rate, which has been unchanged since April 2003 and is considered defunct now as no real interest rates are linked to this rate.
Bank Rate was used to signal change in interest rates over medium to long term, while repo and reverse repo rates are short-term rate tools.

IFGL Refractories: Stock that gained 16% in buoyant trade

IFGL Refractories gained 15.83% or Rs 8.15 to close at Rs 59.65. It touched an intraday high of Rs 61.80 and an intraday low of Rs 54.10. There were pending sell orders of 496 shares, with no buyers available.

Why the run up?
The company has acquired two US based companies EI Ceramics LLC and CUSC International Ltd for a total of USD 13 million. The acquisitions will be partly funded by equity and partly debt with the major portion being debt. The deal is expected to help the refractories manufacturer expand its capacity.
EIC designs, manufactures and supplies isostatically pressed continuous casting refractory to several major steel-makers in North America, which would provide the Indian refractory firm with a lot of synergies.
In an interview, KamalSarda, COO, IFGL Refractories said,"At the current level, at half year, the two companies had about USD 6.5 million. We expect to add about USD 13 million to USD 14 million this year. We hope it would substantially increase after we have absorbed everything." The company sees a 15-20% growth on current operations in the current fiscal.
The company is engaged in the manufacture of specialised refractories and requisite operating systems for the steel industry. The IFGL Group of companies is focused on the global markets and sells in European Community, Americas, South East Asia, Oceania, Middle-East, South Africa, Egypt, Algeria, Nigeria, Russia, Kazakisthan, Singapore, Japan, Taiwan and Phillipines.