JAZAA FINANCIAL ADVISORY PVT. LTD.
Ethics . Principles . Social Responsibility
WEEKLY NEWSLETTER
04th Aug 2012
www.jazaa.in
NEWSLETTER 04th AUG 2012
BSE SENSEX
GLOBAL MARKETS
 The dollar sank on Friday as better-than-expected U.S. jobs growth in July
had investors selling the traditional safe-haven currency while embracing
the euro, putting it on track for its best one-day rise in a month.
 Oil prices rose sharply on Friday, with Brent crude futures hitting a 10week high, after a U.S. nonfarm payrolls report showed employers added
more jobs than expected in July.
 Britain's FTSE 100 index is seen opening up 4-7 points, or as much as 0.2
percent higher on Friday, according to financial bookmakers, steadying
after sharp falls in the previous session.
 The European Central Bank (ECB) has saved Greece from bankruptcy for the time
being by securing it interim financing in the form of additional emergency loans from the
Bank of Greece, German newspaper Die Welt said on Saturday.
INDIAN STOCK MARKETS
Benchmark
share
indices
ended their three-week losing
streak, amid bargain hunting in
fundamentally sound stocks, to
gain over 2% higher in the
week to August 3
The
30-share
Sensex
provisionally ended down 26
points at 17,198 and the 50share Nifty ended down 12
points at 5,216.
In the broader markets, the BSE
Midcap index and the Smallcap closed down 0.2% and
0.1% respectively in line with
the Sensex Metals stocks were
the worst hit today with Sterlite,
Tata Steel and Jindal Steel
losing 2 per cent each on
reports of slowing demand.
Overall the market breadth
was negative on the BSE. 1514
stocks declined as against 1263
advances.
NEWSLETTER 04th AUG 2012
Editor’s Blog
The cabinet has finally decided the auction base
price at 140 billion rupees, or at about 7.4 times
the 2008 price, for 5 mega hertz of secondgeneration airwaves in the 1800 MHz band. The
base price is a 23 percent cut from the telecoms
sector regulator's proposed price of 181.1 billion
rupees. Despite the cut in the auction base price
the telecom players do not seem to be content
with the decision.
The price is a threat to small players such as
Sitema and Telenor who have decided to pull out
their business from India due to high auction costs.
On the other hand giants like Bharti and
Vodafone are not affected by the court orders
and have plans to buy more airwaves to cover
their overstretched network.
Nevertheless whomsoever wins the ultimate
sufferer will be the end users due to tariff hikes
and inflated phone bills. The point I am making is
amid the tussle between the beaurocrats and
entrepreneurs
the
customers
are
being
sandwiched.
E-GOLD and E-SILVER
Commodity E-GOLD
Last Price: 3,022.3
% Return since last week: -0.35
% One year Return: 11.01
Commodity E-SILVER
Last Price : 5,369.5
% Return since last week: 0.01
% One year Return: -11.02
NEWSLETTER 04th AUG 2012
NEWS THIS WEEK
INDIA CUTS AIRWAVE AUCTION BASE PRICE
http://in.reuters.com/article/2012/08/03/india-telecoms-auction-2g-idINDEE8720AB20120803
JET AIRWAYS POSTS SURPRISE PROFIT
http://in.reuters.com/article/2012/08/03/jetairways-results-spicejet-kingfisher-idINDEE8720AG20120803
WALL ST WEEK AHEAD: POSITIVE MOMENTUM IN THE FACE OF HEADWINDS
http://in.reuters.com/article/2012/08/04/usa-stocks-weekahead-idINDEE87303620120804
TELENOR EYES INDIAN SPECTRUM AUCTION DETAILS
http://in.reuters.com/article/2012/08/03/telenor-india-2g-spectrum-idINDEE8720G120120803
DROUGHT DELIVERS FRESH BLOW TO REELING ECONOMY
http://in.reuters.com/article/2012/08/03/india-economy-drought-monsoon-idINDEE87206P20120803
NEWSLETTER 04th AUG 2012
FIRMS IN SHARIAH 50
BSE TASIS SHARIAH 50
PRIOR PERIOD COMPARISON
Previous Close
Week Ago
Month Ago
Year Ago
06-Jul-12
29-Jun-12
07-Jun-12
07-Jul-11
Value Points % Value Points
% Value Points % Value Points %
Shariah 1,139. 0.00 0.00 1,118 20.97 1.88 1,146 -7.88 -0.69 1,126 12.54 1.11
01
.04
.89
.47
50
17,19
16,83
17,46
17,69
0.00 0.00
358.74 2.13
264.8 -1.52
495.2 -2.80
7.93
9.19
2.81
3.18
Sensex
8
5
Dabur India Limited is a leading
Indian
consumer
goods
company with interests in Hair Care, Oral
Care, Health Care, Skin Care, Home
Care and Foods. From its humble
beginnings in the by lanes of Calcutta
way back in 1884 as an Ayurvedic
medicines company, Dabur India Ltd has
come a long way today to become a
leading
consumer
products
manufacturer in India.
Dabur recorded healthy 23% yoy growth
in consolidated revenues at Rs13.6bn
during Q4 FY12 led by volume growth of
12.4% below expectations of Rs14.7bn.
Dabur has a unique mix of seven diverse
growth engines in the FMCG space,
which have a potential of delivering
strong revenue growth. It faces risk from
increasing competition in some of its
categories like hair oils, skin care,
shampoos and slower growth in its
international business profits.
NEWSLETTER 04th AUG 2012
HADITH OF THE WEEK
Narrated Hakim bin Hizam (RA):
Allah's Messenger (PBUH) said, "The seller and the buyer have
the right to keep or return goods as long as they have not
parted, or till they part; and if both parties spoke the truth and
described the defects and qualities (of the goods), then they
would be blessed in their transaction, and if they told lies or hid
something, then the blessings of their transaction would be lost.“
Hadith No. 2079, Book of Sales, Sahih Bukhari, Vol. 3
GLOSSARY OF ISLAMIC BANKING TERMINOLOGY
Tawarruq
The Islamic way of obtaining cash When as Islamic
customer requires cash, they can use this arrangement
to obtain it. It involves buying something on deferred
credit and selling the item on to get cash.
SHARIAH FUNDS DO WELL IN BEARISH TIMES
Shariah-compliant funds are investment
vehicles governed by Islamic laws and
fully compliant with the principles of
Islam.
Shariah-compliant funds are
probably not the best performers in a
bullish market of current times, where
the rally is primarily driven by banking
stocks. But in a slightly bearish market
these funds give decent returns. In India,
this type of funds is yet to become
popular among the masses. As a result,
currently, the number of this kind of
mutual funds is just a handful. But we
may see more fund houses coming up
with such funds in the time to come.
The fundamental characteristic of the
Islamic finance industry is that it is
founded on the principle of profit and
loss sharing, rather than that of fixed
rates of interest this encourages risk
taking by prohibiting guaranteed and
fixed income returns on investment
whether interest-based or interest-like.
Islamic investments avoid speculative
investments such as derivatives which
are more prone to risk and uncertain
returns. All these factors allows shariah
funds to do well in bearish times
NEWSLETTER 04th AUG 2012
S. NO.
NAME
INDUSTRY
CURRENT P/E
INDUSTRY P/E
BOOK
VALUE
MKT. CAP. FULL
APPROX
PRICE
1
HUL
FMCG
29.18
38
16.25
1,00,988.21
467.15
2
BHEL
HEAVY ENGG
7.7
8.88
111.1
54,985.33
224.65
3
GSFC
FERTILIZER
3.7
8.88
441.27
2,804.09
351.85
4
ASIANA HOUSING
REAL ESTATE
4.64
16.81
16.81
299.34
160.85
5
ONGC
OIL EXPLORATION
9.55
11.75
143.33
2,39,938.72
280.45
6
RIL
OIL&GAS
12.78
13.64
502.52
2,40,883.41
742.9
7
VOLTAS
INDUSTRIAL MACHINERY
38.5
13.64
41.21
3,477.60
105.1
8
CASTROL
LUBRICANTS
33.52
27.3
24.43
14,938.22
604.1
9
CESC
POWER GENERATION
6.56
13.63
477.16
3,800.79
301.65
10
LUPIN
PHARMA
23.83
25.99
83.56
25,947.88
580.6
11
JINDAL SAW
STEEL
18.91
10.98
153.52
3,338.16
120.85
12
GRASIM
CEMENT & CONSTR
23.51
13.64
992.06
26,703.44
2911.35
13
NESTLE
FMCG
37.5
33.7
132.13
42,318.30
4389.15
14
HERO HONDA
AUTO
16.06
15.49
267.13
39,116.78
1958.9
15
BAJAJ AUTO
AUTO
15.5
15.49
208.77
46,683.58
1613.3
17
ASAIN PAINTS
PAINT
36.61
31.81
259.36
35,972.32
3750.25
18
GAIL
OIL&GAS
11.9
11.75
180.59
45,252.93
356.75
19
CIPLA
PHARMA
22.11
25.99
93.92
28,098.23
349.95
20
CUMMINS
DIESEL ENGINES
21.63
16.03
73.71
12,862.08
464
21
EVERONN
IT & EDUC.
234.17
314.27
143.7
LUMAX
AUTO TECHNOLOGIES
38.29
12.27
22
17.05
172.03
368.3
394
23
SRF
CHEMICHALS, ENGINEERING, TEXTILE
3.62
3.06
311.73
1,183.15
206.05
24
TTK PRESTIGE
DOMESTIC APPLIANCE
35.09
21.51
249.93
4,165.48
3679.4
25
OMNITECH SOLUTIONS
IT
3.33
17.39
188.51
183.42
126.25
26
APOLLO HOSPITAL
HEALTH CARE
37.44
27.43
166.46
8,645.93
621.45
NEWSLETTER 04th AUG 2012
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JAZAA FINANCIAL ADVISORY PVT. LTD.
Ethics . Principles . Social Responsibility
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