SINGLE DAY PERFORMANCE

Dear Customers,

GOODMORNING HAVE A GREAT DAY

Single Day performance in Goldennifty profit Rs.16222/- we take the privilege of saying that All segment calls achieved the TARGETS……..Let have a look @ Table :

SINGLE DAY PERFORMANCE

Scheme	Script Name	Action	Qty	Entryrate	Stoploss	Target	Profit/Loss	Remarks
CASH	RELIANCE	SELL	200	995	999.75	982	Rs.2600	T.A
CASH	REL INFRA	SELL	290	674.75	681.75	669.5	Rs.1522	T.A
FUTURES	RELIANCE	SELL	250	997.5	1002.75	984.5	Rs.3250	T.A
FUTURES	REL INFRA	SELL	250	676	682.5	671	Rs.1250	T.A
NIFTY FUTURES	NIFTY	SELL	100	5856	5872	5828	Rs.2800	T.A
NIFTY OPTION	NIFTY-6000 PUT	BUY	100	145	127	160	Rs.1500	T.A
STOCK OPTION	RELIANCE-1000 PUT	BUY	500	12	9.8	18.6	Rs.3300	T.A
Total Profit							Rs.: 16222

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Regards,

Golden Nifty Team.

Today Performance 25-Apr-2011

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Nifty lackluster; Reliance Industries, Axis Bank down

MUMBAI: Benchmarks were moving in a narrow range as profit booking in index heavy-weight Reliance Industries and Axis Bank after Q4 results kept bull under check. Gains in FMCG, banks and IT stocks were offset by losses in oil&gas, power and realty space.
"After the long Easter weekend, world markets will try to remain resurrected despite a series of headwinds. As has been the case lately, earnings will continue to dominate the headlines for a few more days. Talking of India, the disappointment from index bellwether Reliance could put a lid on gains at least in the early trade. The start could be subdued but we could see some positive action later in the day.

Overall, the undertone should remains upbeat as equities across the globe have been resilient in the face of sovereign debt concerns, MENA tension and inflation worries. For India, the good thing is FIIs continue to be net buyers. Although results have been mixed, YoY growth in profits and sales is robust. Inflation remains a major pressure point, resulting in expectations of further rate hikes," said IIFL report.

At 9:50 am; National Stock Exchange's Nifty was at 5890.35, up 5.65 points or 0.10 per cent. The broader index touched a high of 5893.10 and low of 5857 in trade so far.

Bombay Stock Exchange's Sensex was at 19640.53, up 38.30 points or 0.20 per cent. The 30-share index hit a high of 19657.29 and low of 19531.4 in early trade.

BSE Midcap Index was up 0.42 per cent and BSE Smallcap Index moved 0.58 per cent higher.

Amongst the sectoral indices, BSE FMCG Index was up 0.70 per cent, BSE PSU Index gained 0.64 per cent and BSE Bankex moved 0.56 per cent higher. BSE Oil&gas Index declined 1.09 per cent and BSE Power Index slipped 0.16 per cent.

Nifty losers included Axis Bank (-3.43%), Siemens (-3.30%), Reliance Industries (-2.37%), Jindal Steel (-1.65%) and Maruti (-0.69%).

"Reliance Industries posted below expected numbers in Q4FY11 driven by lower-than-expected GRM and lower-than-expected petrochemical margins. The company saw flattish refinery throughput and 22% jump in its GRM to US$9.2/bbl against our expectation of US$9.8/bbl," said IDBI Capital report. The brokerage has recommended investors to 'Accumulate the stock.

"Axis Bank's PAT was above expectation but disappointed on margin front. Despite strong growth, NII remained muted due to margin compression. Net interest margin declined sequential owing to rise in term deposit rates. Increase in spread between saving deposit and term deposit has cannibalized the savings deposit leading to decline in its proportion by 3.5% sequentially, translating to average CASA decline of 4% to 37%," said MF Global report. It has maintained 'Buy' rating on the stock with target price of Rs 1740 per share

HCL Tech (4.32%), SBI (2.44%), PNB (1.98%), Ranbaxy Laboratories (1.32%) and M&M (1.29%) were the major gainers.

Market breadth was positive on the NSE with 1204 gainers against 760 losers.

Asian markets were witnessing a mixed session. Nikkei 225 was down 0.05 per cent, Taiwan Weighted gained 0.05 per cent and Hang Seng moved up 1.01 per cent higher.

WEEKS PERFORMANCE (APR 18 - 21) IN GOLDENNIFTY

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Rise in 'put' writing signals bullish outlook for Nifty

MUMBAI: Traders anticipate the current uptrend in the Nifty to continue in the next few trading sessions , going by options data on the National Stock Exchange (NSE). Derivatives analysts say that the substantial put writing in at-the-money and near-the-money puts suggests that the downside in the Nifty could be limited from these levels.

Normally, when a trader is bearish on the market he buys a put option, but put writing underlines bullish undertone in the market as it is a high risk trade where unlimited losses can occur compared with buying a call option where losses are limited to extent of the premium paid. "We observed that put writers were highly active at 5800 and 5900 put strikes hinting at their bullish stance," said Shshank Mehta, derivatives strategist, Nirmal Bang Securities.

In the past two trading sessions, over 20 lakh puts have been written at 5800 and over 40 lakh Puts at 5900 and almost all of these entered into the system, meaning that the put writers did not book profits showing their confidence in the rally.

However, as the maximum activity remains in 6000 call options, analysts say it could act as a resistance level on the upside. The heavy selling pressure in the above strikes were also evident with the sharp drop in IVs which dropped from above 20% levels to around 18% on Wednesday and further dropping to below 16% on Thursday.

Mr Mehta said a rise in open interest on sharply falling IVs indicates selling pressure. He believes that the Nifty could head towards 6000 and can further rise till 6150 levels.

10 crazy stories about Bill Gates

Text Courtesy www.businessinsider.com

Microsoft co-founder Paul Allen released a memoir called "Idea Man" on Tuesday in which he revealed some amazing stories about his friend Bill Gates. Early excerpts from the book as viewed on www.businessinsider-. com portrayed Gates as a tough negotiator who talked Allen into receiving a smaller share of the company they founded together.

The piece put together as a slideshow by Matt Rossoff says the memoir also contains some lighter anecdotes about Gates in his childhood and the early days of Microsoft. If you're only familiar with Gates in his elder-statesman charity role, you may not recognize the hard-charging thrill seeker who built the most profitable tech company in history.

He went dumpster diving to try and get source code

In high school, Gates and Allen honed their programming skills on a DEC minicomputer owned by a local company, C-Cubed . But as students, they didn't have access to as much information as the company's employees, which frustrated them. So at night, Allen would boost the smaller Gates up to the top of the company's dumpsters, where he'd look for interesting stuff. Once, they found a printout of the TOPS-10 source code, and it unlocked a lot of secrets.

Hacked an accounting file to get free computing time

As the charges mounted up for their borrowed computer time in high school, Gates and Allen began looking for a way to access one of the free accounts at C- Cubed. They somehow got access to an administrator password, and used it to steal the company's internal accounting file. (Allen doesn't go into detail about how they got the password.) They were hoping to decrypt the file to get one of the free accounts, but they got caught and the company booted them.

Preloaded himself into an all-girls english class

One summer, Gates contracted to write a class scheduling program for his high school. He made sure to "preload" himself into an English class with a dozen girls and no other boys.

He went water skiing with a broken leg

When Gates was a senior in high school, he and Allen were working on a temporary programming contract in southern Washington state and sharing an apartment. One night, Gates walked through the door in a leg cast - he had snapped his leg water skiing. He was supposed to go back to Seattle and stay in a cast for six weeks, but after three weeks he showed up with the cast off, his leg black and blue, and went water-skiing again. Allen writes "his leg somehow held up."


Ate roast chicken with a spoon

Gates had little patience for social convention. One time when Allen's girlfriend Rita cooked him a roast chicken, he ate the entire thing with a spoon.

Lost thousands of dollars playing poker at Harvard

Gates was a regular at the nightly poker games in his residence hall at Harvard. Allen recounts how he would win or lose hundreds of dollars in a night, and eventually dropped "thousands ." But the games taught him how to bluff, which became useful later on.

Stayed all night working then slept on office floor

 Gates loved to stay up all night working. One time, a new secretary came in on Monday morning to find him sprawled out on the floor. She thought he was unconscious , but he'd just been up all weekend and was taking a quick catnap.


Did chest slides down a banister at a party

As Microsoft started to get some success, Allen held a crazy Halloween party at his house. Gates got a kick out of sliding on the banister - he would "run as fast as he could, throw himself on the banister, and glide toward the kitchen."

Drove like a maniac

In the early days of Microsoft, Gates got so many speeding tickets that he was forced to hire the best traffic attorney in Washington State to get him out of trouble. One day, he borrowed a friend's Porsche 928 and spun and bottomed out, almost totaling it. The repairs took a year.


Took over control panel at airport to get plane back

In the early 1980s, Gates and Allen were late catching a plane at San Francisco International Airport . As the plane pulled away, Gates ran up to the control panel next to the jetway and began pushing buttons, hoping to move the jetway back out to the plane. Allen thought Gates would be arrested , but instead somebody from the airline called the plane back for them.



 


 

MAKING SENSE OF “SENSEX”…

What Is A Stock Market Index?

• Stock market indices basically convey the mood of the market and act as the market’s messengers

• Indices represent different clusters of stocks/ industries and the rise and fall in these indices’ values is a close representation of the market’s view on the stocks that make these indices. Hence, stock market news is cumulatively reflected in the movement of the index

• Simply put, an index represents the composite value of shares of different companies traded on a particular stock exchange

• Till late 1980s, there was no index for India’s stock markets, till the Bombay Stock Exchange (BSE) introduced the ‘Sensex’ in 1986 (which represents composite share value of 30 selected companies trading on BSE).

• Later in the 1990s, the National Stock Exchange (NSE) introduced another index, popularly known as the Nifty (which represents composite share value of 50 selected companies trading on NSE)

Stock market indices provide us with a common measurement tool for the rise and fall in prices of shares that are traded on the index.

How Is An Index Constructed?
Three basic ingredients have to be judged:
1. Base year for measurement
2. Number of companies to be included
3. Base value (For eg: 10/100/1000)



For BSE Sensex:

Base year:1978-79
Number of companies: 30
Base value: 100
Date of launch: January 1, 1986 (baselined to 1978-79)
Index calculated every 15 seconds

No written rule which specifies number of companies to be included or base value to be considered (Sensex considered 100 as it was neither too large nor too small a value).

On What Basis Are Companies Chosen To Be Part Of An Index?

• Composition of the companies in an index can keep changing periodically

• Some factors on which the decision to include a company depends on:

v  Size of free float market capitalization
v  Frequency of trading
v  Listed history and track record
v  Industry representation

• When the BSE Sensex was originally formed, it used the weight of market capitalization of companies, but from September 2003 onwards, it shifted to the free-float market capitalization method.

Selection Criteria For BSE Sensex

• Listed History: The scrip should have a listing history of at least 3 months at BSE. Exception may be considered if full market capitalization of a newly listed company ranks among top 10 in the list of BSE universe. In case, a company is listed on account of merger/ demerger/ amalgamation, minimum listing history would not be required.

• Trading Frequency: The scrip should have been traded on each and every trading day in the last three months at BSE. Exceptions can be made for extreme reasons like scrip suspension etc.

• Final Rank: The scrip should figure in the top 100 companies listed by final rank. The final rank is arrived at by assigning 75% weightage to the rank on the basis of three-month average full market capitalization and 25% weightage to the liquidity rank based on three-month average daily turnover & three-month average impact cost.

• Market Capitalization Weightage: The weightage of each scrip in SENSEX based on three-month average free-float market capitalization should be at least 0.5% of the Index.

• Industry/Sector Representation: Scrip selection would generally take into account a balanced representation of the listed companies in the universe of BSE.

• Track Record: In the opinion of the BSE Index Committee, the company should have an acceptable track record.

What Is Free-Float Market Capitalization?

• Free-float is defined as the total number of shares which are actually available for day-to-day trading (hence this excludes shares locked with promoters, institutional investors, government etc)

• Multiplying the number of free-float shares of a company with the current market price gives us the value of free-float market capitalization (FFMC)

• How is this used?

v  Suppose in base year, FFMC of A: Rs 100, for B: Rs 200 and so on, adding up to overall FFMC for all 30 companies in the index: Rs 1000
v  Base Value of the index: Rs 100
v  Establish a proportional relationship between base value and FFMC (termed as index divisor) by equating the overall FFMC (Rs 1000) to value of the base (100 points)
v  Hence, each Rs 10 of FFMC is worth 1 point in terms of base value of the index
v  In other words, if market cap rises by Rs 100, index should rise by 10 points

• Free-float market capitalization defines how much money will be required if one were to buy all the shares of a company that are available for trading

What Is The ‘Index Divisor’?

• It is the proportional link between the base value of the index and the free float market capitalization

• Dividing the FFMC (Rs 1000) with the index divisor (10 from the previous example), gives one the base value

• If the FFMC increases next day by 30% (hence the value increasing to Rs 1300), then dividing this value by the index divisor will give the index value at that point in time

• Hence, the index divisor acts as a link between the past and the present value of the index

• It also helps in ensuring that corporate actions such as stock splits, bonus and rights issues, mergers etc don’t distort the value of the index.

To calculate value of index at any point in time, one needs to divide the free-float market cap of all shares with the index divisor.

Other Benefits Of The ‘Index Divisor’

• Apart from helping to derive the value of the index, the index divisor also plays a great role in ‘maintenance of index’ (in technical terms)

• This means making necessary modifications in the value of index divisor to counterbalance the effects of corporate actions such as those mentioned in the previous slide

• Supposing that the number of free float shares of a company suddenly increases due to some reason, for eg because of a bonus issue.

v  Even though the market price of the stock doesn’t move at all, the free-float market cap shows an increase, hence increasing the value of index as well (which would be a misrepresentation)
v  In such a scenario, necessary adjustments are made in the index divisor so that the continuity of the index is not affected

• The index divisor plays an important role in not only determining the value of the index, but also to ‘maintain the index’. Hence choosing the right index divisor is always important.

Advantages Of Free-float Methodology

• Reflects the market trends more rationally: takes into consideration only those shares that are available for trading in the market

• Makes the index more broad-based by reducing concentration of top few companies in Index

• Aids both active and passive investing styles

v  Aids active managers by enabling them to benchmark fund returns vis-ã-vis an investible index, enabling an apple-to-apple comparison thereby facilitating better evaluation of performance of active managers
v  Being a perfectly replicable portfolio of stocks, a Free-float adjusted index is best suited for the passive managers as it enables them to track the index with the least tracking error.

• Improves index flexibility in terms of including any stock from the universe of listed stocks, improving market coverage and sector coverage of the index.

v  For eg, under a Full-market cap methodology, companies with large market cap and low free- float can’t generally be included in the Index because they tend to distort the index by having an undue influence on the index movement.
v  However, under the Free-float Methodology, since only the free-float market cap of each company is considered for index calculation, it becomes possible to include such closely-held companies in the index while at the same time preventing their undue influence on the index movement.

• Globally, the Free-float Methodology of index construction is considered to be an industry best practice and all major index providers like MSCI, FTSE, S&P and STOXX have adopted the sameMSCI, a leading global index provider, shifted all its indices to the this methodology in 2002.

v  The MSCI India Standard Index, which is followed by Foreign Institutional Investors (FIIs) to track Indian equities, is also based on the Free-float Methodology.
v  NASDAQ-100, the underlying index to the famous Exchange Traded Fund (ETF) – QQQ is based on the Free-float Methodology.




Adjustments For Corporate Actions (Bonus, Rights & Newly Issued Capital)

• Index calculation needs to be adjusted for issue of Bonus or Rights shares, if no adjustments were made, discontinuity would arise between current value of index and previous value despite the non- occurrence of any economic activity

• At the BSE Index Cell, the base value is adjusted, which is used to alter market capitalization of the component stocks to arrive at the SENSEX value. The Cell keeps a close watch on the events that might affect the index on a regular basis and carries out daily maintenance of all the 19 Indices

• Adjustments for Rights Issues – When a company issues right shares, free-float market cap is increased by the number of additional shares issued based on the theoretical price. An offsetting or proportionate adjustment is then made to the Base Market cap

• Adjustments for Bonus Issue – When a company issues bonus shares, the market cap does not undergo any change, so there is no change in the Base Market cap, only the ‘number of shares’ in the formula is updated

• Other Issues – Base Market cap adjustment is required when new shares are issued by way of conversion of debentures, mergers, spin-offs etc. or when equity is reduced by way of buy-back of shares, corporate restructuring etc.

Adjustments For Corporate Actions (Bonus, Rights & Newly Issued Capital)


Base Market capitalization Adjustment
The formula for adjusting the Base Market capitalization is as follows:
New Base Market capitalization= Old Base Market Capitalization X New Market Capitalization / Old Market Capitalization

To illustrate, suppose a company issues right shares which increases the market capitalization of the shares of that company by say, Rs.100 crores. The existing Base Market capitalization (Old Base Market capitalization), say, is Rs.2450 crores and the aggregate market capitalization of all the shares included in the index before the right issue is made is, say Rs.4781 crore. The “New Base Market capitalization ” will then be:
New Base Market capitalization= 2450 X (4781+100)/4781 = Rs 2501.24 cr
This figure of Rs. 2501.24 crore will be used as the Base Market capitalization for calculating the index number from then onwards till the next base change becomes necessary.
I sincelrely hope it will help u to make SENSE of SENSEX now…
Happy Reading…
With Personal Regards,
YOURFINANCEGURU.COM

USER GUIDE TO LIFE INSURANCE FUNDAMENTALS…

What is Life Insurance?
Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during :

• The date of maturity or
• Specified dates at periodic intervals or
• Unfortunate death if it occurs earlier

Among other things, the contract also provides for the payment of premium periodically to the Company by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates ‘risk’, substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner.
By and large, life insurance is human civilisation’s partial solution to the problems caused by death.
Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:
1) That of dying prematurely leaving a dependent family to fend for it.
2) That of living till old age without visible means of support.
Why do I need Life Insurance?
Life is uncertain and it is not possible to predict exactly the different events that can occur. However, there is always a need to earn income to support yourself and your dependents in case of any eventuality. Life Insurance provides for financial security in the wake of such unfortunate events like death or on the inability to earn due to physical disabilities. Besides providing for financial security in the case of one’s untimely death, it can be used to accumulate a kitty for your old age, to systematically build assets, to fund your child’s education and also to save on taxes.
Who can buy a policy?
Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest.
Policies can also be taken, subject to certain conditions, on the life of one’s spouse or children. While underwriting proposals, certain factors such as the policyholder’s state of health, the proposer’s income and other relevant factors are considered by the insurance company.
Life insurance Vs Other savings options
A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance.
At the time of taking a policy, the policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void.
Protection:
Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.
Aid To Thrift:
Life insurance encourages ‘thrift’. It allows long-term savings since payments can be made effortlessly because of the ‘easy installment’ facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly).
Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan.
Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force.
Assesses can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise.
Money When You Need It:
A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time.
Children’s education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies.
Alternatively, policy money can be made available at the time of one’s retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).
Why is it better to buy insurance at an early age?
There are many advantages of buying an insurance policy as early as possible. First, the consideration for an insurance policy or the premium is significantly lower at younger ages (the reason for that is as you grow older, the mortality risk is greater and hence insurance companies would charge a higher premium to cover that risk). By buying a policy at an early age, you would be able to protect your dependents against the unforeseen event like death at a much lower overall cost. Second, as you grow older, the chances that you would suffer from health problems are higher, and obtaining insurance could become difficult at that stage even if you want to. Third, if you are buying insurance with a view to create a large sum of money at a pre-determined age to meet certain planned expenses like your children’s education or for your post-retirement expenses, then saving early on in you life is highly beneficial. You will have to save much more or for longer durations to get the same amount of money if you start saving late in your life.
How much Life Insurance do I need?
The need for life insurance is based on various factors including your current lifestyle, expected outflows in future, your present age and your family size. The first step should be to estimate how much financial support your dependents would need in order to continue to enjoy the same lifestyle as they enjoy today in the event that you are not around to provide that support. In estimating this support, you should consider all regular monthly expenses including food, rentals, conveyance, school fees, medical expenses, any debts to be repaid, etc. and also estimated ones like for children’s education and marriage and your expected needs after retirement. Always provide for unforeseen contingencies that your dependents might need during the period of adjustment. Based on this analysis and the expected returns on the investments in future, you can work out a sum of money that would help your dependents achieve financial independence even if you are not around to support them.
While the situation of every individual would be different, and should be evaluated separately, one rule of thumb is to buy a cover for an amount equal to 6-10 times your annual income. Clearly, the need for insurance is not static and will change as your life-stage changes so you must re-work the requirement periodically and review the coverage available from time to time. It is advisable to speak to a trained financial consultant / insurance advisor to determine the extent of coverage that you require.
Are my existing policies enough for me?
(I already have life insurance policies, what should I do?)
Your need for protection is not fixed as life progresses, there are new developments that happen and these developments impact the extent to which you need protection. Hence the requirement for protection should be reviewed periodically and if there is a shortfall, it should be covered as soon as possible by buying additional insurance cover. For the purpose of illustration, some of the events in your life that are likely to have an impact on the levels of protection that you need are:

• You or your children are getting married.
• You have become or are becoming a parent.
• Your parents or your spouse have retired / are retiring and are / will be financially dependent on you.
• The health of your dependents or your own health has taken a downturn.
• You have acquired large capital assets like a new home or a car.
• Your children are about to enter school or college.
• You or your spouse has got a large raise in salary or the family income levels have significantly increased.

Various types of life insurance products
Life insurance products can be classified into two broad categories:

• Pure protection plans or Term plans
• Protection cum investment plans like Unit Linked endowments.

Pure protection plans or Term plans
Pure protection plans or Term plans are those products that provide benefit only upon death of the life insured. These are the cheapest form of life insurance and are suitable, especially in younger ages when you are yet to build up your finances.
Protection cum Investment plans
These plans not only insure the individual to the risk associated with one’s life but also help in wealth creation. Portion of the premiums paid by insured go in for insuring life and the balance is invested on their behalf by the insurance company. The unit linked plans offer huge flexibility and complete control to insured on how these investments need to be managed. They also provided options to withdraw money from the policy incase of need or to invest over and above the premiums in case of extra cash flows.

Happy Reading.

With  Regards,
YOURFINANCEUGURU.COM

Sensex up 0.7 pc; Reliance Industries, TCS lead before earnings

MUMBAI: Indian shares rose 0.7 percent in early trade on Thursday amid firm Asia, with energy major Reliance Industries and top outsourcer Tata Consultancy Services leading the rise ahead of their quarterly earnings announcement.

At 9:17 a.m. (0347 GMT), the 30-share BSE index was up 0.71 percent at 19,608.80 points, with 27 components advancing.

TCS rose more than 2 percent while Reliance climbed more than a percent.

The 50-share NSE index was up 0.6 percent at 5,885.45.

Sensex ends in green; Bharti, RCom, L&T, TCS up

MUMBAI: Benchmarks snapped two-day losing streak and ended volatile session on a positive note. Oil&gas, realty and banks offset losses in FMCG, power and auto stocks.

Bombay Stock Exchange's Sensex ended at 19117.24, up 26.07 points or 0.14 per cent. The 30-share index hit a high of 19201.92 and low of 18976.19 in today's trade.

National Stock Exchange's Nifty closed at 5744.35, up 15.25 points or 0.27 per cent. The broader index touched a high of 5762.95 and low of 5693.25 intraday.

BSE Midcap Index was up 0.39 per cent and BSE Smallcap Index moved 0.35 per cent higher.

Amongst the sectoral indices, BSE FMCG Index was down 0.89 per cent, BSE Power Index fell 0.76 per cent and BSE Auto Index slipped 0.34 per cent. BSE Oil&gas Index was up 0.57 per cent and BSE Bankex moved up 0.46 per cent.

Bharti Airtel (2.39%), Reliance Communications (2.13%), L&T (1.74%) Bajaj Auto (1.50%) and TCS (1.42%) were the top Sensex gainers.

Hero Honda (-4.82%), BHEL (-2.53%), ITC (-1.03%), HUL (-1.02%) and Maruti (-0.84%) were the top losers.

Market breadth was negative on the BSE with 1503 declines against 1366 advances.

Sensex flat; HDFC Bank rises as Q4 results beat forecast

MUMBAI: Indian shares were barely changed in early trade on Tuesday amid weak Asian markets, while HDFC Bank , the country's third-largest lender, rose 1.8 percent after its quarterly profit rose a third, beating street forecast.

HDFC Bank said late on Monday it expects credit demand to rise more than 20 percent in this fiscal year.

At 9:17 a.m. (0347 GMT), the 30-share BSE index was down 0.02 percent at 19,087.49 points, with 21 components declining.

The 50-share NSE index was up 0.03 percent at 5,730.85.

Infosys, Wipro increase focus on verticals to overcome growth challenges

Restructuring is disruptive and takes away operational focus," says Kris Gopalakrishnan , CEO of Infosys Technologies , after a week of tumult that saw new and old questions being raised on the company's ability to stay ahead and settle leadership issues. So, if the software-services company is in the midst of its first organisational overhaul in four years, it must have very good reasons. There are.

The first is TCS, the only Indian software company running ahead of Infosys, and running further and further away from it with each passing quarter. The second is Cognizant, one of two companies behind it, and getting bigger and bigger in its mirrors. Gopalakrishnan sidesteps that bait, but senior Infoscians say those two peers provide a context for many internal conversations about growth.

In a sense, the restructuring journey that Infosys has embarked on is one that TCS and Cognizant started a few years ago. The basic premise was how best to compete in the market while keeping their huge employee base engaged. Every Indian software company, while doing business, has to deal with three dimensions-geographies, industries and service lines. And this is where the lines tend to cross-and affect business.

While Infosys kept things centralised and gave importance to all three fronts, TCS and Cognizant regrouped along industry lines, or verticals. TCS, for example, planned to create 23 business divisions, each with a CEO having a high degree of autonomy. Mini-corporations within a large corporation.

For the last seven to eight years, Infosys has been gradually increasing its focus on verticals. It's now taking it to its natural conclusion. "We are now applying this (verticalisation) to the entire company," says Gopalakrishnan. It's a line of thinking that its cross-town rival from Bangalore, Wipro, also embraced in January 2011, after a similar bout of disappointments on the business front threw a poser on how it was doing business.

Partha Iyengar, head of Gartner's India research, says the companies are responding to deeper market changes, but the transition to a more decentralised structure could be painful. "Not everyone is starting from the same point," he says. "I don't look at it as verticalisation, but as an effort to make the organisation more agile and responsive," says Sudin Apte, founder of outsourcing advisory firm Offshore Insights.

'One Wipro'

TK Kurien , new CEO of Wipro, likes to use a moniker to summarise what the software services company wants to transform itself into: One Wipro. It is meant to describe a physical state of being where the sprawling parts of its business are organised to run in the same direction, without crossing paths.

In the old structure, before January 2011, they didn't always. Take the way Wipro did business with a bank like Citibank. Three separate departments in Wipro-banking, sales and software testing-had mandates to sell business to the bank directly.

So, at any point in time, three different teams from Wipro would be making pitches at Citibank. Its banking vertical would be selling a banking software, the sales team might be making a pitching for the bank's back-office work, and its software testing division would be offerings its testing services.

Income Tax department to review all realty deals to unearth black money

NEW DELHI: The income tax department plans to review realty deals following allegations of rampant use of black money in many transactions. "We will take appropriate action wherever we find involvement of black money in such transactions," said Sudhir Chandra , chairman, Central Board of Direct Taxes .

Chandra said the department would begin scrutiny of property deals in the national capital region and follow it up in other metros.

The value of most real estate transactions in the national capital are suppressed to save on stamp duty, capital gains tax and wealth tax and are believed to have black money component as high as 65%, said another income tax official.

The black money component continues to remain high despite most states now fixing circle rates, or minimum rate at which a property can be registered, for various localities.

The income tax department receives data on all property registrations worth more than 30 lakh as a part of its special data capturing mechanism from property registrars.

In a separate proposal, the government is also considering making it mandatory for registrars to report all property transactions under the anti-money laundering law. Any property transaction used to launder illicitly earned money will, after an amendment in the Prevention of Money Laundering Act, attract harsher punishment.

The department is expected to rely heavily on technology and information on taxpayers it receives from various sources under 360 degree profiling.

Realty sector has been on the income tax department's radar for a while and tops the list of sectors most searched.

"The department has received many complaints of the involvement of black money in the sale and purchase of land and houses," the official said.

Recently, a well-known Mumbai developer admitted to undisclosed income of 200 crore. In a separate case, 100 crore was recovered from a Surat-based real estate company .

In 2009-10 and 2010-11, the I-T Department unearthed unaccounted income of over 30,000 crore in its search and seizure operations.

Chandra said while the number of searches had come down but the amount of undisclosed wealth had increased as the department was making effective use of technology. "Use of technology and data as part of 360 degree profiling system has improved the quality of searches," Chandra said.