Jet Airways nosedives over 6% as Q2 net loss jumps 8-fold to Rs 891 crore

NEW DELHI: Shares of Jet AirwaysBSE -2.63 % Ltd nosedived as much as 6.06 per cent in early trade on Thursday, after the country's second-biggest airline by market share said its net loss for the July-September quarter widened more than eight times year-on-year to Rs 891.01 crore.

This was its third straight loss-making quarter. Before this, Jet’s biggest net loss was Rs 713 crore during July-September in 2011.

At 10:20 a.m.; Jet Airways recouped some of the morning losses and was trading 3.3 per cent lower at Rs 334.20. It has hit a low of Rs 325.05 and a high of Rs 337.80 in trade today.

Sales during the just-ended quarter rose less than a percent to Rs 3,788.2 crore. Jet said its yield per passenger rose 11% to Rs 8,335. Its number of passengers rose by 12% while total departures rose by 6%, it added.

Jet’s cash reserves and deposits at the end of last fiscal year were at Rs 837 crore, which was razed by Rs 688.3 crore of cash losses in the first six months of the current fiscal.

Like its peers in the Indian aviation industry, Jet has been hit by high fuel costs, a slowdown in the domestic travel industry, undercutting in prices and a depreciation of the rupee.

“The airline has already defaulted on lease rentals to International Lease Finance Corporation. The airline said its net worth has eroded to a negative Rs 1,734.5 crore, as on September 30, 2013,” ET reported.

Jet said that its earnings were hit by instances of aircraft on ground, the impact of which was approximately Rs 123.3 crore, added the ET report.

Jet’s losses on its domestic operations rose more than four times to Rs 632.1 crore. It swung to a loss of Rs 258.9 crore on its international operations compared to a profit of Rs 45.2 crore a year earlier.

The airline is expected to shortly get $379 million from a stake sale deal with Etihad Airways, but analysts said the funds won’t be enough for the airline to expand or turn around its operations. 

 

                    By

Shah Mohammad Abdul Qadir 

          PGDM 1st sem

HDFC Bank to raise up to $500 mn abroad

he country’s second largest private sector lender, planned to raise up to $500 million (Rs 30,000 crore) by issuing senior unsecured notes to foreign investors through its Bahrain branch, bankers familiar with the development said.
The issue is part of the bank’s $2-billion medium-term notes programme. The three-year bonds are priced at 255 basis points (bps) above the three-year US treasury yield. Standard Chartered Bank, Bank of America Merrill Lynch, Barclays and JP Morgan have been appointed to manage the issue.
“The final guidance for HDFC Bank’s US Regulation S benchmark bonds maturing in November 2016 is set at 260 bps above the US treasury,” said a banker aware of the development.
Standard & Poor’s Ratings Services has assigned a ‘BBB-’ rating to the bank’s proposed issue. “The proposed notes will constitute direct, unconditional, unsecured and unsubordinated obligations of the bank. They shall, at all times, rank on a  par among themselves and with all other unsecured obligations of the bank. The rating on the notes is subject to our review of the final issuance documentation,” the rating agency said in a note.
Moody's Investors Services has assigned a 'Baa2' rating to these bonds.
In March, the bank had raised $500 mn at a three per cent coupon rate by selling five-year bonds.he country’s second largest private sector lender, planned to raise up to $500 million (Rs 30,000 crore) by issuing senior unsecured notes to foreign investors through its Bahrain branch, bankers familiar with the development said.
The issue is part of the bank’s $2-billion medium-term notes programme. The three-year bonds are priced at 255 basis points (bps) above the three-year US treasury yield. Standard Chartered Bank, Bank of America Merrill Lynch, Barclays and JP Morgan have been appointed to manage the issue.
“The final guidance for HDFC Bank’s US Regulation S benchmark bonds maturing in November 2016 is set at 260 bps above the US treasury,” said a banker aware of the development.
Standard & Poor’s Ratings Services has assigned a ‘BBB-’ rating to the bank’s proposed issue. “The proposed notes will constitute direct, unconditional, unsecured and unsubordinated obligations of the bank. They shall, at all times, rank on a  par among themselves and with all other unsecured obligations of the bank. The rating on the notes is subject to our review of the final issuance documentation,” the rating agency said in a note.
Moody's Investors Services has assigned a 'Baa2' rating to these bonds.
In March, the bank had raised $500 mn at a three per cent coupon rate by selling five-year bonds



muntazir alam 
pgdm 1st.

iPad becomes thinner, Apple's new OS goes free

It is thinner, lighter and more powerful. So it was no wonder that Apple chose to call its new full-size iPad the iPad Air. After all it was the MacBook Air that defined what thinner and lighter meant for the world of computing.

The new 9.7-inch iPad is the thinnest full size tablet the world has seen. It is thinner than a pencil as the new ad that celebrates this tablet shows. It is also much powerful than its predecessor, thanks to the 64-bit A7 processor and M7 motion co-processor that make the iPhone 5S a ripper. It will also have much faster data transfer rates with the introduction of MIMO antennas.

Nandagopal Rajan

Going with popular demand Apple has also updated the smaller 7.9-inch iPad Mini with Retina display. It also gets the same innards as the iPhone 5s and the new iPad Air. Apple seems to have the unique knack of knowing what will work. How else do you explain 170 million iPads sold in the three years since the world saw its first tablet computer? Despite the growing popularity of Android devices, the Ipad commands 81 per cent of all tablet usage, according to Apple CEO Tim Cook.

But India is not in the first list of countries going to get the new iPad Air and iPad Mini. Prices in the US will start at $499 for the 16GB Wi-Fi version of the iPad Air, and $399 for the same variant of the iPad Mini. The good news for Indian buyers this festival season could be the price cut on the earlier iPad Mini, which will now sell for $299.

But the really revolutionary announcement from Apple's special event was relating to the launch of its new operating system, OS X Mavericks. The bigwigs at Cupertino have decided to make its new OS free, and that too for everyone who has owned a Mac device since 2007. Now, if that doesn't make rivals Microsoft sit up and take notice, then Apple has also decided to make all its productivity apps like iWork and iLife free. Imagine a world where you get Microsoft's Office software for free?

Apple also updated its 13 and 15 inch Retina display MacBook Pros with Intel's fourth generation Haswell processor and Iris integrated graphics. They will also have better battery life, faster Wi-Fi and storage. The new 13-inch MacBook Pro will sell in India from today at Rs 99,900 onwards, while the 15-inch version will cost Rs 1,34,900 onwards.

The stunning Mac Pro, showcased to the world a few months ago, will start hitting stores in India this December at price starting Rs 2,29,900. With four, six, eight and 12-core Intel Xeon processors running at Turbo Boost speeds up to 3.9 GHz, this machine is expected to become the device of choice for video editors and anyone who is engaged in processing heavy functions.

Most predictions about the event -- the fact that the iPad will become thinner and the iPad Mini will get Retina display - have come true. But like always Apple had a surprise up its sleeve, and this time it is about a lot of costly things going free.
AQUIL ALAM PGDM

SAT upholds Sebi order against Rich Universe, its CMD

 

 

The Securities Appellate Tribunal on Tuesday upheld Sebi's order against Rich Universe Network and its chairman and managing director in a case related to the company's failure to respond to the market regulator's summons.


The Securities and Exchange Board of India (Sebi) had imposed a penalty of Rs. 25 lakh on Rich Universe and Rs. 15 lakh on its CMD Shashwat Agarwal for not furnishing details sought by the market regulator related to alleged irregularity in the shares trading of the company.

With the purpose to analyse the alleged violations committed by the entities, Sebi had issued a summons to Rich Universe firm and its CMD asking them to provide certain information documents, which they failed to furnish.

Rich Universe had approached SAT challenging Sebi's order.
    
In its order today, the tribunal said that "keeping in view the adamancy of the appellants (Rich Universe and its CMD) in observing total indifference towards the summons issued by the respondent (Sebi), we hold that the present appeal is bereft of any merit and the same is hereby dismissed with no order as to costs".
    
It observed that failure on the part of entities to furnish information "is not only contemptuous but also a hindrance in the way of conducting smooth investigation and enquiry by the regulator to arrive at a just and fair conclusion as per the provisions of Sebi Act, 1992".
    
The matter relates to Sebi probe into the irregularities in the share trading of Rich Universe Network (earlier known as Rich Capital & Financial Services) from February 1 to September 24, 2010.
    
Sebi had noticed that a group of entities was indulging in circular trading thereby creating artificial volume in the scrip of the firm that also influenced its share price. 

naresh kr.... pg 1st

mint

Mutual funds garner Rs.24,000 cr from investors in August

During fiscal 2013-14 so far, MFs net mobilization stood at Rs.69,252 cr as compared to Rs.1,53,781 cr a year ago

 

First Published: Wed, Oct 02 2013. 08 08 PM IST

At gross level, mutual funds mobilized Rs8.05 trillion in August, but also witnessed redemption worth Rs7.81 trillion—resulting into a net outflow of Rs23,713 crore. Photo: Mint

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• West Bengal to start its own small savings scheme

New Delhi: Investors have put in nearly Rs.24,000 crore in various mutual funds (MFs) in August after pulling out money from such schemes in the preceding two months. The huge inflows of funds during August followed a net withdrawal of Rs.50,067 crore in the preceding month, taking the total outflows for two consecutive months to close to Rs.1 trillion.

As per the latest data available with market regulator Securities and Exchange Board of India (Sebi), investors have pumped in a net amount of Rs.23,713 crore in August in various MF schemes. This takes the MFs’ net mobilization of funds from investors so far in the current fiscal (April-August) at about Rs.69,252 crore.

Mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

At gross level, mutual funds mobilized Rs.8.05 trillion in August, but also witnessed redemption worth Rs.7.81 trillion—resulting into a net outflow of Rs.23,713 crore. This significant level of fund mobilization has also helped the total asset under management of mutual funds to grow to Rs.7.66 trillion as on 31 August 2013.

“During the financial year 2013-14 so far, mutual funds’ net mobilization stood at Rs.69,252 crore as compared to Rs.1,53,781 crore mobilized in corresponding period of 2012-13,” Sebi said.

Meanwhile, the benchmark BSE Sensex, plunged by 726 points, or 3.75%, during the period under review.

nagesh dubey
pgdm 1st

Dollar Drops to 10 Month Low Versus Euro

Dollar Drops to 10 Month Low Versus Euro

The dollar dropped to fresh 10-month lows against the euro and four-month lows versus the Aussie dollar the ‘miss’ in the September NFPs. For many, this data is confirmation that the Fed’s unpopular – for capital markets like US equities – decision to Taper its stimulus program would be pushed all the way until March 2014. Yet, it is interesting to note that the dollar reaction was more restrained than the debt resolution and the S&P 500’s exuberance was significantly weaker than the average bullish performance last week. What are we to derive from this? One element of this restrained is the level of speculation surrounding the looser monetary policy conditions. Assets like US equities in particularly seem like they never doubted an ongoing support system. And, in the absence of a ‘relief’ rally on risk, tepid jobs and stimulus don’t exactly spell out the beginning of a long-term bull trend. A more prolific problem that may develop traction moving forward is outright doubt that stimulus will be maintained that long or even be effective in its moral hazard gearing. What happens if the S&P 500 drops even with QE3 at full tilt…

British Pound Looking to BoE Minutes as GBPUSD Faces 1.6250

Where the interest rate outlook for the US may be at the bearish extreme with markets expecting the accelerator depressed on stimulus through the next five months, the sterling is on the opposite end of the spectrum. Rates-sensitive markets have made it clear that the Bank of England’s (BoE) foreword guidance for benchmark rates to be held until 2016 are not believed. An expectation for the first hike to come in 2015 was further reinforced last week when the central bank’s chief economist voiced implicit support of the more hawkish time frame. We will see whether these expectations are indeed overblown or on track with the upcoming BoE minutes. Should the language soften on the adamant dove stance with the GBPUSD so close to 1.6250 – a multi-year resistance – a break may be in store. However, expectations are already stretched; and the group has not strayed from its original guidance. Furthermore, the argument of a hike two years out over three years out doesn’t present a particularly strong bullish line beyond short-term repricing. The greater risk is for a dovish hold and bearish response for the pound.

Australian Dollar Rally on 3Q CPI More Successful for AUDNZD

With rate making a consistent recovery from the discounts of persistent rate cuts just months ago, the Australian dollar has found recovery traction with a timid risk appetite supporting carry. Yet, the shift so far for the Aussie yield projection has only made the transition to rate cuts to a flat forecast. We have yet to see a material outlook for rate hikes take root. The slow build up was put into jeopardy early this morning when the third quarter consumer inflation (3Q CPI) figures crossed the wires. With the annual, headline reading expected to slow to 1.8 percent and thereby drop out of the RBA’s preferred range, fear of another near-term cut began to creep back in. The 2.2 percent reading mitigated those fears, but it didn’t move forward the time frame on the first hike. Without active carry appetite, this data my garner little strength.

Euro: Greece Readies Troika Demands, 

ECONOMIC DATA

GMT	Currency	Release	Survey	Previous	Comments
0:00	AUD	DEWR Skilled Vacancies (MoM) (SEP)		0.3%	Inflation looks to hit its lowest level since the June 2012 print. A continuation below 1.8% could strike concern among members of the RBA and may warrant comments at the next meeting.
0:30	AUD	Consumer Price Index (QoQ) (3Q)	0.8%	0.4%
0:30	AUD	Consumer Price Index (YoY) (3Q)	1.8%	2.4%
0:30	AUD	CPI RBA Trimmed Mean (QoQ) (3Q)	0.6%	0.5%
0:30	AUD	CPI RBA Trimmed Mean (YoY) (3Q)	2.1%	2.2%
0:30	AUD	CPI RBA Weighted Median (QoQ) (3Q)	0.6%	0.7%
0:30	AUD	CPI RBA Weighted Median (YoY) (3Q)	2.3%	2.6%
1:45	CNY	MNI Business Sentiment Indicator (OCT)
2:00	CNY	China Economic Survey - Bloomberg (OCT)
6:45	EUR	French Business Survey Overall Demand (OCT)		-14	August’s 98 print was the best business confidence index in manufacturing since the fall of 2011.
6:45	EUR	French Own-Company Production Outlook (OCT)		13
6:45	EUR	French Production Outlook Indicator (OCT)	-11	-10
6:45	EUR	French Business Confidence Indicator (OCT)	98	97
8:30	GBP	BBA Loans for House Purchase (SEP)	39500	38228	The print is approaching 2012 highs, but far below pre-crisis levels.
11:00	USD	MBA Mortgage Applications (OCT 18)		0.3%	Import price indexes for September were delayed due to the government shutdown.
12:30	USD	Import Price Index (MoM) (SEP)	0.2%	0.0%
12:30	USD	Import Price Index (YoY) (SEP)	-1.0%	-0.4%
13:00	USD	House Price Index (MoM) (AUG)	0.8%	1.0%
14:00	CAD	Bank of Canada Interest Rate Decision	1.0%	1.0%
14:00	EUR	Euro-Zone Consumer Confidence (OCT A)	-14.5	-14.9	If the print beats prior, it will be the best reading since the Euro-crisis began.
14:30	USD	DOE U.S. Crude Oil Inventories (OCT 18)	3000K		WTI Crude broke below $100 Tuesday for the first time since July.
14:30	USD	DOE U.S. Distillate Inventory (OCT 18)	-1800K
14:30	USD	DOE U.S. Gasoline Inventories (OCT 18)	-1000K
21:45	NZD	Trade Balance (New Zealand dollars) (SEP)	-680M	-1191M	Kiwi strength remains vulnerable after it spiked to 6 month highs post-NFP print.
21:45	NZD

ECONOMIC DATA

GMT	Currency	Release	Survey	Previous	Comments
0:00	AUD	DEWR Skilled Vacancies (MoM) (SEP)		0.3%	Inflation looks to hit its lowest level since the June 2012 print. A continuation below 1.8% could strike concern among members of the RBA and may warrant comments at the next meeting.
0:30	AUD	Consumer Price Index (QoQ) (3Q)	0.8%	0.4%
0:30	AUD	Consumer Price Index (YoY) (3Q)	1.8%	2.4%
0:30	AUD	CPI RBA Trimmed Mean (QoQ) (3Q)	0.6%	0.5%
0:30	AUD	CPI RBA Trimmed Mean (YoY) (3Q)	2.1%	2.2%
0:30	AUD	CPI RBA Weighted Median (QoQ) (3Q)	0.6%	0.7%
0:30	AUD	CPI RBA Weighted Median (YoY) (3Q)	2.3%	2.6%
1:45	CNY	MNI Business Sentiment Indicator (OCT)
2:00	CNY	China Economic Survey - Bloomberg (OCT)
6:45	EUR	French Business Survey Overall Demand (OCT)		-14	August’s 98 print was the best business confidence index in manufacturing since the fall of 2011.
6:45	EUR	French Own-Company Production Outlook (OCT)		13
6:45	EUR	French Production Outlook Indicator (OCT)	-11	-10
6:45	EUR	French Business Confidence Indicator (OCT)	98	97
8:30	GBP	BBA Loans for House Purchase (SEP)	39500	38228	The print is approaching 2012 highs, but far below pre-crisis levels.
11:00	USD	MBA Mortgage Applications (OCT 18)		0.3%	Import price indexes for September were delayed due to the government shutdown.
12:30	USD	Import Price Index (MoM) (SEP)	0.2%	0.0%
12:30	USD	Import Price Index (YoY) (SEP)	-1.0%	-0.4%
13:00	USD	House Price Index (MoM) (AUG)	0.8%	1.0%
14:00	CAD	Bank of Canada Interest Rate Decision	1.0%	1.0%
14:00	EUR	Euro-Zone Consumer Confidence (OCT A)	-14.5	-14.9	If the print beats prior, it will be the best reading since the Euro-crisis began.
14:30	USD	DOE U.S. Crude Oil Inventories (OCT 18)	3000K		WTI Crude broke below $100 Tuesday for the first time since July.
14:30	USD	DOE U.S. Distillate Inventory (OCT 18)	-1800K
14:30	USD	DOE U.S. Gasoline Inventories (OCT 18)	-1000K
21:45	NZD	Trade Balance (New Zealand dollars) (SEP)	-680M	-1191M	Kiwi strength remains vulnerable after it spiked to 6 month highs post-NFP print.
21:45	NZD

ECONOMIC DATA

GMT	Currency	Release	Survey	Previous	Comments
0:00	AUD	DEWR Skilled Vacancies (MoM) (SEP)		0.3%	Inflation looks to hit its lowest level since the June 2012 print. A continuation below 1.8% could strike concern among members of the RBA and may warrant comments at the next meeting.
0:30	AUD	Consumer Price Index (QoQ) (3Q)	0.8%	0.4%
0:30	AUD	Consumer Price Index (YoY) (3Q)	1.8%	2.4%
0:30	AUD	CPI RBA Trimmed Mean (QoQ) (3Q)	0.6%	0.5%
0:30	AUD	CPI RBA Trimmed Mean (YoY) (3Q)	2.1%	2.2%
0:30	AUD	CPI RBA Weighted Median (QoQ) (3Q)	0.6%	0.7%
0:30	AUD	CPI RBA Weighted Median (YoY) (3Q)	2.3%	2.6%
1:45	CNY	MNI Business Sentiment Indicator (OCT)
2:00	CNY	China Economic Survey - Bloomberg (OCT)
6:45	EUR	French Business Survey Overall Demand (OCT)		-14	August’s 98 print was the best business confidence index in manufacturing since the fall of 2011.
6:45	EUR	French Own-Company Production Outlook (OCT)		13
6:45	EUR	French Production Outlook Indicator (OCT)	-11	-10
6:45	EUR	French Business Confidence Indicator (OCT)	98	97
8:30	GBP	BBA Loans for House Purchase (SEP)	39500	38228	The print is approaching 2012 highs, but far below pre-crisis levels.
11:00	USD	MBA Mortgage Applications (OCT 18)		0.3%	Import price indexes for September were delayed due to the government shutdown.
12:30	USD	Import Price Index (MoM) (SEP)	0.2%	0.0%
12:30	USD	Import Price Index (YoY) (SEP)	-1.0%	-0.4%
13:00	USD	House Price Index (MoM) (AUG)	0.8%	1.0%
14:00	CAD	Bank of Canada Interest Rate Decision	1.0%	1.0%
14:00	EUR	Euro-Zone Consumer Confidence (OCT A)	-14.5	-14.9	If the print beats prior, it will be the best reading since the Euro-crisis began.
14:30	USD	DOE U.S. Crude Oil Inventories (OCT 18)	3000K		WTI Crude broke below $100 Tuesday for the first time since July.
14:30	USD	DOE U.S. Distillate Inventory (OCT 18)	-1800K
14:30	USD	DOE U.S. Gasoline Inventories (OCT 18)	-1000K
21:45	NZD	Trade Balance (New Zealand dollars) (SEP)	-680M	-1191M	Kiwi strength remains vulnerable after it spiked to 6 month highs post-NFP print.
21:45	NZD

India to build $300 billion forex chest to counter a slimmer QE figure

NEW DELHI: India hopes to have a $300-billion war chest ready by the end of the year as a frontline defence against tapering by theUS Federal Reserve, which is now expected to begin sometime early next year.

The finance ministry expects $30 billion to be added to its foreign exchange reserves, currently estimated at $251 billion, by the end of November.

"The effort is to build the forex kitty," said a senior finance ministry official. The government doesn't see any major upheaval from tapering, he said.

Fed Chairman Ben Bernanke's suggestion in May that the US could start pulling back its bond-purchase programme triggered a panic exodus from emerging markets, with India among the worst hit. There's been a recovery since then as overseas investors have returned and Fed has put off a decision on when tapering will start. Meanwhile, the government and RBI have taken a series of steps aimed at strengthening India's defences ahead of the inevitable withdrawal of the stimulus programme.

RBI is expected to respond more quickly than it did last time to check rupee volatility as tapering approaches.

Independent experts also see strong dollar reserves as the best defence against any capital outflow and resultant pressure on the rupee. Total reserves, including gold and balances with IMF, are currently at $281 billion, up from $275 billion at the end of August.

“If our debt gets included in one of the global indices, there would be an additional flow of $20 billion just on this count,” said Abheek Barua, chief economist, HDFC Bank, referring to ongoing efforts aimed at getting included in such benchmarks for emerging market debt. “We expect forex reserves to be a little less than $300 billion with an upside,” he said.

Fed deferred the scaling down of its $85-billion-a-month bond buying programme on September 18 until there was stronger evidence of recovery in the world’s largest economy. Most analysts now expect the rollback of bond purchases to begin by early next year after employment numbers last month showed the US economy was gathering pace. The rupee depreciated more than 20% in less than five months toward the end of August, hitting an all-time low of 68.85 to the dollar as foreign investors pulled out funds.

It has since rebounded to around 61 to the dollar because of measures by both the government and RBI and a substantial improvement seen in the current account deficit (CAD). Economists agree the preparation will mean that India will be able to handle the actual winding down of Fed’s unprecedented monetary stimulus better than it did when there was a mere mention of its possibility. “We will be able to manage and there would not be much volatility... India's fundamentals have improved,” said DK Pant, director and head, public finances, India Ratings, the local arm of Fitch Ratings.

Tanay Tapas

PGDM 1st