Rupee down 27 paise at 61.89 against dollar in early trade

Mumbai: The rupee lost 27 paise to 61.89 against the US dollar in early trade today at the Interbank Foreign Exchange due to appreciation of the American currency against euro overseas.

Increased demand for the US dollar from importers also put pressure on the rupee.

Dealers attributed the rupee's fall to the American currency's gains against the euro overseas but a higher opening in the domestic stock market capped the fall.

The rupee had closed 12 paise higher at 61.62 a dollar in yesterday's trade on selling of the American currency by banks and exporters.

Meanwhile, the BSE benchmark Sensex rose by 48.46 points, or 0.23 per cent, at 21,023.25 in early trade today.

Goldman raises Nifty target to 6,900

Mumbai: Goldman Sachs upgrades its view on India to "marketweight", with a target for the Nifty of 6,900 points.

Goldman notes optimism over political change is trumping economic concerns, given what the bank says are expectations that the opposition Bharatiya Janata Party, led by prime minister candidate Narendra Modi, could prevail in parliamentary elections due by May 2014.

Goldman also notes that external capital account pressures have moderated for now, and cites signs of a cyclical pick-up and structural improvements in the economy.

The investment bank likely notes the earnings outlook is stabilising, while noting that retail redemption pressures could moderate, among the factors behind its upgrade.

Goldman says technology, healthcare, and energy are its top sectors.

Goldman says it likes technology stocks including HCL Technologies and Tech Mahindra , oil and energy scripts such as Reliance Industries , Bharat Petroleum Corp Ltd and Coal India Ltd , banks including Yes Bank and IndusInd Bank and select auto and cement stocks.

The U.S. bank also included some mid-cap infrastructure stocks which are trading at inexpensive valuations such as Adani Power , NHPC Ltd , Materials stocks like Grasim Industries , and industrials stocks like Container Corp of India and Adani Ports and Special Economic Zone

Mutual funds' exposure to bank stocks rises to Rs 26,800 cr

New Delhi: Cashing in on the good equity market conditions, fund managers' raised their exposure to bank stocks to more than Rs 26,800 crore in September over the preceding month.

According to the latest data available with Sebi, the mutual fund (MF) industry's investment in banking stocks stood at Rs 26,838 crore as on September 30, accounting for 15.75 percent of their total equity assets under management (AUM) of Rs 1.70 lakh crore.

In August, mutual funds' exposure to banking stocks had touched the lowest level in four years to Rs 22,744 crore. However, the investment had risen to as high as Rs 43,659 crore in December 2012.

Market participants attributed the increase in investment in banking shares to measures announced by the new Reserve Bank of India (RBI) chief Raghuram Rajan coupled with overall surge in the stock market.

Banking stocks climbed in September, after falling for four consecutive months, on value buying and a slew of measures announced by the RBI.

During September, the banking index (bankex) surged by 6.4 percent, while the 30-scrip sensitive index (Sensex) rose four percent.

Rajan, in September, had announced steps to stabilise the Indian currency and liberalise the banking system, including higher overseas borrowing limits for lenders and simpler processes for opening branches.

Mutual funds are 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.

In 2012, there was consistent investment growth in banking stocks by the industry's equity fund managers and their exposure had risen from 17.23 percent of total AUM in January 2012 to 21.15 percent in December.

The increase in allocation of funds to banking stocks in 2012 was largely attributed to declining interest rates.

In September this year, banking was followed by software space where the mutual funds' investment stood at Rs 23,797 crore. While the consumer non durables accounted for Rs 13,921 crore, pharma stood at Rs 14,444 crore and petroleum products at Rs 9,933 crore.

Tomato prices soar to Rs 80 per kg

 
New Delhi: After onion, retail prices of tomatoes have soared up to Rs 80 per kg in the national capital on lower supplies from Madhya Pradesh and Maharashtra.

Mother Dairy, which has about 400 retail outlets in the national capital region, is selling tomatoes at Rs 64 per kg, while local vendors are charging Rs 70-80 per kg.

Last week, tomoato prices were ruling at Rs 40 per kg.

According to traders at Delhi's wholesale mandi at Azadpur, tomato prices have gone up sharply as arrivals from Himachal Pradesh have almost stopped with onset of winter, while supplies from Ratlam in Madhya Pradesh and Maharashtra are also low.

Arrival of tomatoes have declined in Delhi to 15-20 trucks against 35-40 trucks before Diwali, they added.

Onion prices have moderated to 60 per kg, down from peak of Rs 100 kg last month.

Potato, onion and tomatoes are the three most common vegetables used in every household.

As per the government data, tomato was being sold at Rs 80 per kg in Port Blair and Rs 70 in Aizwal. It was cheapest Rs 15 per kg in Bhopal. The average for 57 cities was Rs 40 per kg.

Tomato was ruling at Rs 60 per kg in Jammu, Cuttack and Rourkela and Rs 45 in Thiruvananthapuram. The data put price ruling in Delhi at Rs 48 per kg even though retail rates were as high as Rs 80 per kg.

Besides the household demand, the commodity was being sought in greater numbers by manufacturers of tomato ketchup and purees, putting pressure on the prices

Twitter IPO set to price today

 
Zee Media Bureau

New Delhi: The Twitter IPO is set to price on Wednesday, with shares to begin trading on the New York Stock Exchange on Thursday. The previous price range was $17 to $20 a share.

The new pricing would value the company at up to $13.6 billion, or about 12.5 to 13.6 times forecast 2014 revenue of $1 billion, according to eMarketer. Both Facebook and LinkedIn Corp trade at about 12 times forecast 2014 revenue.

Several equity research analysts said they expect Twitter shares to rise after they begin trading, with some setting their one-year price target as high as $52.

"We would participate within the $23-$25 range, albeit, simple math would dictate that management should price at the bottom end of the new range," BTIG's Richard Greenfield said in a note Monday after the price was raised.

Year to date, 2013 has been the strongest for IPOs since 2007 in the United States, with more than 178 companies going public, according to Thomson Reuters data. Equity markets are climbing and investor uncertainty has subsided, at least for now, over the U.S. debt ceiling crisis and political gridlock.

Shares of Container Store Group Inc doubled on their first day of trade on November 1, joining strong debuts from more than half a dozen companies, including restaurant chains Noodles & Co and Potbelly Corp and software company Benefitfocus Inc.

Twitter management has been traveling the United States over the past week, speaking with potential investors.

Google launches new commerce platform, 'Helpouts'

San Francisco: Google on Wednesday launched a new online service called "Helpouts," aiming to connect businesses and consumers to solve problems or get advice on a range of issues.

The service is similar to Google's "Hangouts" with live video for paid services in areas ranging from computer tech support to weight loss.

"What if getting help for a computer glitch, a leaky pipe, or a homework problem was as easy as clicking a button?" Google's Udi Manber said in a blog post announcing the new service.

"What if you could get someone knowledgeable to get you 'unstuck' when you really need it?"

Manber said some of the services now are "how to fix your garage door, or how to remove a computer virus; or it might be guidance completing a project, like building a deck. "

But he added that "on Wednesday is just the beginning. We're starting small and in a few categories."

The categories being offered initially include art and music, computers, cooking, education and careers, fashion and beauty, fitness and nutrition, health and home and garden.

The Helpouts range from free to USD 240 or more. Some examples include chemistry tutoring and homework, learning to play guitar, yoga instruction, French language lessons, fixing computer problems or refrigerator repair.

"With Helpouts, you can choose who you get help from based on their qualifications, their availability, their price, their ratings and reviews," Manber said

Sensex reclaims 21K level on fresh buying

Mumbai: After a brief pause yesterday, the S&P BSE benchmark Sensex reclaimed the 21K level and was quoted at 21,012.77 in late morning trade due to fresh buying on the back of persistent foreign capital inflows.

Market also got a boost after Finance Minister P Chidambaram exuded confidence that the country's current account deficit will be contained below USD 60 billion in current financial year.

Foreign institutional investors (FIIs) bought shares worth a net Rs 162.53 crore yesterday as per provisional data from the stock exchanges.

The Sensex resumed higher at 21,004.54 and hovered in a range of 21,045.38 and 20,944.50 before quoting at 21,012.77 at 1030 hrs, showing a gain of 37.98 points or 0.18 percent from its last close.

The NSE-50 share Nifty also moved up by 2.20 points or 0.04 percent to 6,255.35 at 1030 hrs.

Major gainers were TCS (1.83 percent), Wipro (1.62 percent), Cipla (1.40 percent), Sun Pharma (1.36 percent), Coal India (1.35 percent), Tata Motors (1.24 percent) and ITC (1.02 percent).

Most Asian stocks reversed intra-day losses today. Key benchmark indices in Hong Kong, Taiwan, Indonesia and Japan rose 0.07 percent to 0.47 percent while indices in Singapore and South Korea fell 0.11 percent to 0.12 percent. China's Shanghai Composite was flat