www.mywealthclub.com's Sunny Saturday Quote of the Day!!

Financial Coffee

(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY CII survey shows a rising trend in Q4 business confidence External debt rises to 20% of GDP Govt on track to meet fiscal deficit target Turn LIC, RBI into Regular Cos, Says Srikrishna Panel Economy Needs a Bypass as CAD Reaches Double of ’91 April-February fiscal deficit at Rs 5.07 trillion  INTERNATIONAL ECONOMY South Korea Announces Stimulus After Lowering Growth Outlook Japan’s Manufacturing Gloom Set to Clear as Yen Improves Outlook Consumer Confidence Cools as U.S. Jobless Claims Rise Cyprus Averts Panic Withdrawals as Banks Open With money Controls Economy in U.S. Grew at Revised 0.4% Pace in Fourth Quarter BRICS Approve Currency Fund as Bank Start-Up Stalls  EQUITY MARKET FIIs pump in 1.5 billion in Equity market in March Defensives outperform for the third consecutive year PSU Banks Feel the Heat with No Pick-up in Sight  DEBT MARKET Bond yields soften 4 bps on last trading day of the fiscal RBI defers Basel-III norms for forex derivatives Banks raise cautionary bar on gold loan firms, but see no liquidity risks Banks make a killing in call money market COMMODITIES Brent crude jumps to $110  Gold headed for worst quarterly run since 2001 FOREX Rupee Down Just 1.3% against Dollar in Q4 Canada Dollar Drops Versus Major Peers as Risk Appetite Falls Euro Rallies Most in Week as Cyprus-Led Contagion Concern Fades Yen Gains Versus Peers as BOJ’s Kuroda Gives No New Policy Hints Pound Rises to Two-Month High Against Euro on Cyprus, Italy Woes   MUTUAL FUNDS Equity funds trim positions in bank stocks Want to Bet on Small & Mid-cap Stocks? Trust MFs to Make the Right Bets for You Short-term Debt Products in Focus as Equities Unlikely to Perk Up Soon BSE proposes to keep MF distributorship license at Rs 10000 INSURANCE Life insurers eye expansion in health segment Premium on  Motor Insurance Hiked by 20%  REAL ESTATE Realtors Adopt Sachet Model to Push Sales 'Indian real estate market investment volume at Rs 19,000 cr in 2012' Slowing IT Growth Brings Another Reality Check  OPINION Current account-ability Are US equities cheap?:- Akash Prakash ,CEO of Amansa Capital Shall We Bank on BRICS, a Coalition of Unequals?:-RAJESH RAJAGOPALAN,Professor JNU Get it Right. Get More Money to Customers:-HAMISH McRAE,The Independent  KNOWLEDGE CENTER Avoid Costly Ulips Even in Rush to decrease Tax: Experts A road map to Financing your Education Tax Implication on NRI investment in Mutual Funds Turn your investment dreams into reality MIP - Is this India's most misleading mutual fund product? How many MF schemes should one have in a portfolio?

Financial Coffee

(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY Current account deficit likely to be at 5%: Rangarajan PSBs Asked to Clean Books to Raise Funds Small Savings Schemes to Fetch You Less This Year  INTERNATIONAL ECONOMY Saving Cyprus Means Nobody Safe as Europe Breaks More Taboos Consumers Will Keep Spending : Economy S. Korea Economy Grows at Slowest Pace Since Global Downturn Cyprus Salvaged After EU Deal Shuts Bank to Get $13B Bank of Israel Holds Rate for Third Month as Home Prices Surge EQUITY MARKET Sebi does away with physical filing of KYC documents to KRAs Investments through P-notes rise to Rs 1.62 lakh cr Rate-sensitive scrips to benefit from FII debt limit increase Midcap Crash Leaves 1k-cr Hole in Big Bull’s Portfolio  DEBT MARKET Bank term deposits, gold buying eating into small savings pie Spanish Bonds Slide on Cyprus Deal Concern as German Bunds Rise U.S.-German Yield Gap Most Since 2010 on Cyprus Bailout Govt bond yields seen rising; rupee may weaken COMMODITIES WTI Oil Trades Near Five-Week High; U.S. Stockpiles Seen Rising Gold Little Changed, Set for Monthly Gain on Europe Debt Concern Govt Mulls Bulk Gold Sales in Small Volumes FOREX Rupee hits one-week high on $ sale by exporters Korean Won Gains to One-Week High as Exporters Repatriate Income Yen Weakens Versus Peers as BOJ’s Kuroda Outlines Easing Options Australian Dollar Near Two-Month High Before RBA Stevens Speech Pound Rises to Six-Week High Against Euro on Cyprus; Gilts Gain Canada Dollar Gains Versus Majors as Oil Rises to 1-Month High Euro Trades Near 4-Month Low as Cyprus Spurs Debt Crisis Concern    MUTUAL FUNDS Short-term Debt Products in Focus as Equities Unlikely to Perk Up Soon BSE proposes to keep MF distributorship license at Rs 10000 Should you opt for MF pension plans? Know the Colour of Risk, and What it Means INSURANCE Jayant Dua:- Life insurance sector is at an inflection point L&T Fin to Buy Out Pantaloon in Non-life JV with Generali Non-life insurers register a robust growth of 19 percent in premium collections  REAL ESTATE 'Indian real estate market investment volume at Rs 19,000 cr in 2012' Slowing IT Growth Brings Another Reality Check Weak Sales, High Debt to Keep Realty Cos on Shaky Ground  OPINION Leveraging the debt office Chitra Subramaniam Duella :- Ground Euro: Where the Rich Stash R Sriram:- India Inc, Buy Europe DANNY GEEVARGHESE:-Can Xi handle It All, From Yuan to Japan?  KNOWLEDGE CENTER Avoid Costly Ulips Even in Rush to decrease Tax: Experts A road map to Financing your Education Tax Implication on NRI investment in Mutual Funds Turn your investment dreams into reality MIP - Is this India's most misleading mutual fund product? How many MF schemes should one have in a portfolio?

Financial Coffee

(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY Govt clears 12 FDI proposals worth Rs 2,609 cr Essential Drug Makers Can Inform & Quit Super-regulator for financial sector mooted Contraction in Exports to Blame for Trade Deficit Crisis: Sharma  INTERNATIONAL ECONOMY Bank of Israel Holds Rate for Third Month as Home Prices Surge Russia Rejects Cyprus Financial Rescue Bid as Deadline Looms U.K. Moves Closer to Losing AAA at Fitch on Debt Concerns U.S. Consumer Spending Probably Rose Most in Five Months Cyprus’s Fate Hangs in the Balance as ECB Deadline Looms EQUITY MARKET FIIs investment in equities touches $10 b so far this year Markets may remain volatile in truncated week: Experts Offer for sale is a dampener for share prices of public sector undertakings Mid-cap stocks see up to 90% value erosion   DEBT MARKET Govt bond yields seen rising; rupee may weaken Street expects new 10-year benchmark govt bond in April Call rates edge higher on Reporting Friday Bond yields inches up on Friday  COMMODITIES Govt Mulls Bulk Gold Sales in Small Volumes WTI Oil Rises, Narrows Discount to Brent Gold, Silver Fall as Cypriot Lawmakers Debate Bailout  FOREX Euro Weakens Versus Dollar as Cyprus Bailout Deadline Approaches Rupee ends lower at 54.33 a dollar,Forex reserves up $1.96 billion Pound Falls Versus Euro on Bets Cyprus Contagion to Be Contained Aussie Dollar Trades Near 7-Week High on Pared Rate Cut Bets Canada Dollar Gains for Third Day as Oil Rises on Risk Appetite   MUTUAL FUNDS Should you opt for MF pension plans? Know the Colour of Risk, and What it Means Invest in MFs on Returns, Not Tax Status Mutual Fund houses flood markets with fixed maturity plans INSURANCE Irda Wants You to Focus on Health, Worry Less About Claims To improve cover, IRDA looking at two-year policies Ratings to help track performance of ULIPs  REAL ESTATE Slowing IT Growth Brings Another Reality Check Weak Sales, High Debt to Keep Realty Cos on Shaky Ground Home sales rise 46% in NCR: Report  OPINION DANNY GEEVARGHESE:-Can Xi handle It All, From Yuan to Japan? Sudeshna Sen:- It’s Europe’s North Versus South Moment S Naren:-‘If Inflation Declines, Rates may Fall Up to 2% in the Long Term’ Martin Feldstein :-India is on Hold Till Next Elections Bennett Voyles:- Cyprus crisis may be overdone, but Eurozone troubles remain   KNOWLEDGE CENTER What to do if you can’t pay your home loan EMI A road map to Financing your Education Tax Implication on NRI investment in Mutual Funds Turn your investment dreams into reality MIP - Is this India's most misleading mutual fund product? How many MF schemes should one have in a portfolio?

Financial Coffee

(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY Govt clears 12 FDI proposals worth Rs 2,609 cr Super-regulator for financial sector mooted Contraction in Exports to Blame for Trade Deficit Crisis: Sharma  INTERNATIONAL ECONOMY Cyprus Approves Capital Controls as EU Ministers Prepare to Meet German Business Confidence Unexpectedly Drops Economists See No Crisis With U.S. Debt as Economy Gains 'Fund managers most positive on banks since December 2006' EQUITY MARKET Cash settlement in BSE stock F&O contracts from April 26 Indian companies plan reverse takeover in S'pore LIC Saves the Day for Steel Authority of India Limited, Helps Offer Scrape Through RBI moots ways to boost returns on India Inc's foreign investments   DEBT MARKET Notification on Basel-III norms soon: Subbarao Street expects new 10-year benchmark govt bond in April Call rates edge higher on Reporting Friday Bond yields inches up on Friday  COMMODITIES Gold, Silver Fall as Cypriot Lawmakers Debate Bailout Brent Oil Premium to WTI Drops to Lowest Level in Eight Months  FOREX Rupee ends lower at 54.33 a dollar,Forex reserves up $1.96 billion Pound Falls Versus Euro on Bets Cyprus Contagion to Be Contained Aussie Dollar Trades Near 7-Week High on Pared Rate Cut Bets Canada Dollar Gains for Third Day as Oil Rises on Risk Appetite Euro Rises to $1.30 on Speculation Contagion Will Be Contained    MUTUAL FUNDS Debt Funds Gain as Equity MFs Lose Out High interest rate management yields better returns Short-term rates fall below 10% for the first time in two years Gold funds break seven-month uptrend; AUM slips below Rs12,000 crore INSURANCE Irda Wants You to Focus on Health, Worry Less About Claims To improve cover, IRDA looking at two-year policies Ratings to help track performance of ULIPs  REAL ESTATE Home sales rise 46% in NCR: Report Realtors Cut Prices to Bring Back Buyers Global property deals seen back above $1 trillion in 2013: report  OPINION Banking sector's asset woes to continue in FY14 Ranjita Ganesan:-The new queen's necklace When gold falls Malini Bhupta:- Has the consumer sector hit a valuation bubble?  KNOWLEDGE CENTER Rushing to Decrease Tax? Look Beyond Insurance at Other Options too Turn your investment dreams into reality Take RBI Cue, But no Need to Churn Your Portfolio Yet How fit are single premium plans to address your needs? Tax Implication on NRI investment in Mutual Funds Budget 2013: Tax for NRIs receiving royalties/ fees from India to go up

Call rates steady on previous close

The overnight borrowing rates touched a high and low of 7.80% and 7.50% respectively

Interbank call rates were trading unchanged at its previous close of 7.65/70% on Wednesday, as demand eased given that most of the banks had already covered for their product needs. However, cash conditions are expected to further ease once government spending picks up in April and the advance tax outflows start returning to the system

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 1, 39815 crore through repo window on March 21, 2013, while banks using special LAF facility borrowed Rs 1,30840 crore through repo window and parked Rs 345 crore via reverse repo window on March 20, 2013.

The overnight borrowing rates touched a high and low of 7.80% and 7.50% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.70% on Thursday and total volume stood at Rs 22716.31 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.58% on Thursday and total volume stood at Rs 13688.65 crore, so far.

The indicative call rates which closed at 7.65/70% on Wednesday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered, so far.

Bond yields edge higher tracing rise in global crude oil prices

The yields on 10-year 8.79% - 2021 bonds were trading higher by 1 basis point at 7.93% from its previous close of 7.92% on Wednesday

Bond yields edged higher tracing higher global crude oil prices, however, bargain buying which is likely to be triggered at lower levels, may cap the surge of bond yields.

On the global front, US Treasuries, stabilizing after slipping the previous day, steadied in Asian trade on Thursday, as investors sought riskier assets after the Federal Reserve reaffirmed its accommodative policy to support the economy.  Meanwhile, Brent crude was trading above $108 a barrel on Thursday as China manufacturing data pointed to a better fuel demand outlook in the world's second largest oil user, thereby offsetting lingering worries about contagion in the euro zone from Cyprus's woes.

Back home, the yields on 10-year 8.79% - 2021 bonds were trading higher by 1 basis point at 7.93% from its previous close of 7.92% on Wednesday.

The benchmark five-year interest rate swaps were trading higher by 2 basis points at 7.22% from its previous close of 7.20% on Wednesday.

Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations (OMOs) by purchasing the following government securities for an aggregate amount of Rs 10,000 crore on March 22, 2013 through multi-security auction using the multiple price method.

Thirsty Thursday Quote of the Day

Financial Coffee

(Please click on the Newspaper link to read the full article)   INDIAN ECONOMY Govt to Make Life Less Difficult for Single-brand Retailers Policy soon for drug approval, clinical trials Repo rate cut not enough, complementary actions needed: C Rangarajan  INTERNATIONAL ECONOMY N.Z. Grows at Fastest Pace in 3 Years on Christchurch Work Fed Officials Trim Forecasts for 2013, 2014 Jobless Rate China Manufacturing Rebounds in Sign of Sustained Recovery Fed Maintains $85 Billion Pace of Monthly Asset Purchases Japan Posts Longest Run of Trade Deficits in Three Decades  EQUITY MARKET PEs set sight on housing finance companies Markets extend losses post DMK exit Steel Authprity of India Limited Offer Okayed, to Hit Mkt on Mar 22   DEBT MARKET Banks mop up deposits worth Rs 1 lakh cr Road to loan recovery tough for banks Investors not Keen to Bond with Infra Cos Despite Sops Japan’s Yield Drops to 10-Year Low  Treasuries Remain Lower Before U.S. Home Data as Fed Stimulates COMMODITIES Gold Use in India Gaining May Weaken Attempt to Curb Deficit Gold seen range-bound; forex movements may hold key  FOREX Rupee snaps 2-day losing string, up at 54.37 Pound Strengthens as Osborne Retains BOE’s 2% Inflation Target Euro Rises as Cyprus Seeks Alternatives to EU Plan Ruble Gains Most in More Than Two Months on Crude, Tax Payments Yen Halts Fall Versus Dollar After Japan’s Trade Deficit Shrinks   MUTUAL FUNDS India gold ETF sales fall as investors cut allocations in Soros' wake MFs to be colour-coded to indicate risk Gilt funds may not be the best choice despite rate cuts MFs fear losing assets if 3-day deposit scheme comes true INSURANCE Insurers roll out schemes to check agent attrition LIC to end FY13 with high profits from share sale Ratings to help track performance of ULIPs  REAL ESTATE Big discounts on resale flats Global property deals seen back above $1 trillion in 2013: report Get Ready to Pay 1% TDS on 50L Flat From June   OPINION Is Preferential Market Access justified? Nitin Desai:- Is the worst over?  KNOWLEDGE CENTER Rushing to Save Tax? Look Beyond Insurance at Other Options too Turn your investment dreams into reality Take RBI Cue, But no Need to Churn Your Portfolio Yet How fit are single premium plans to address your needs? Soon, when you switch jobs, PF number will remain the same Budget 2013: Tax for NRIs receiving royalties/ fees from India to go up