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New Takeover Code 2011: New Era Or Damp Squib?

Written By Unknown on Minggu, 30 Maret 2014 | 23.56

Published on Sat, Mar 29,2014 | 18:18, Updated at Sat, Mar 29 at 18:47Source : Moneycontrol.com |   Watch Video :

The 2011 Takeover Code significantly overhauled its 1997 predecessor and changed the life of Indian companies and global players looking to India. The 2011 Code has also been extolled for simplifying the open offer and disclosure regimes in India, while incorporating best practices from international jurisdictions. However, almost two years after it was introduced, industry is still grappling with issues surrounding control and negative control, SEBI's maverick (and often discordant) interpretation of the Code, and the sketchy manner in which SEBI has been handling its interface with other regulators. At the IBA M&A Conference 2014, VS Sundaresan of SEBI, Adam Emmerich of Wachtell Lipton, Somasekhar Sundaresan of J Sagar Associates, Raj Balakrishnan of Merrill Lynch, Daniela Favoccia of Hengeler Mueller & Sridhar Gorthi of Trilegal discussed the latest developments in relation to the Takeover Code, including the impact of the Supreme Court's surprising decision in Subhkam and how they see the Indian takeover regime evolving.


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Short Wipro, advises Siddharth Bhamre

According to Siddharth Bhamre of Angel Broking, one may short Wipro as the stock may shed 6-7 percent from current levels and test Rs 511-512.

Siddharth Bhamre of Angel Broking told CNBC-TV18, "If somebody is going in short in IT or pharma it means that person is bullish on the market. I am bullish on market and that is the reason I am talking about shorting Wipro ."

"Technically Tata Consultancy Services  and Infosys  are all trading below the short term averages at this point of time. Wipro is slightly above the averages. If one looks at the rollover data, all of the IT counters have corrected because of unwinding of long positions because lot of people were hiding in last series in IT and pharma. Wipro is the only stock which added short positions," he said.

"We believe that from the current juncture, Wipro may correct not very significantly, we are expecting a target price of around Rs 511-512 which is 6-7 percent from current levels and which is in line with what is happening to currency. So, fix the stoploss somewhere around Rs 562-563 and go short in Wipro."


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Go long in Tata Global Beverage: Siddharth Bhamre

Siddharth Bhamre of Angel Broking recommends going long in Tata Global Beverage as the stock may test Rs 159.

Siddharth Bhamre of Angel Broking told CNBC-TV18, " Tata Global Beverage is something which is looking very attractive. It has been consolidating since nine weeks and we are expecting a upside move over here. Breakout is there and good long positions are added in the stock. So, expect Rs 159 and fix a stoploss of Rs 143 and go long."

The share touched its 52-week high Rs 170.20 and 52-week low Rs 128.95 on 03 November, 2013 and 28 March, 2013, respectively. Currently, it is trading 13.01 percent below its 52-week high and 14.81 percent above its 52-week low. Market capitalisation stands at Rs 9,155.39 crore.


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Where ZF India sees auto ancillary industry heading

This episode of Overdrive puts spotlight on auto ancillary industry; the backbone of the automotive industry. Jamshed Patel caught up with Piyush Munot, the man who heads ZF India's operations to get an outlook on the sector.

This episode of Overdrive puts spotlight on auto ancillary industry; the backbone of the automotive industry. Jamshed Patel caught up with Piyush Munot, the man who heads ZF India's operations to get an outlook on the sector.


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Truth and dare: An analysis of Congress manifesto

R Jagannathan
Firstpost.com

The Congress election manifesto, released on March 26, has been quickly rubbished by the BJP as a "document of deceit". This is a bit rich, for all manifestos - without exception - are "documents of deceit". They are about presenting the voter with a sumptuous menu card, but without the right hand column - the price list. The regional parties have already presented their "documents of deceit", and the BJP will surely present one deceitful enough to compete with the document presented by Rahul Gandhi and Sonia. (Read the full manifesto here , and critiques here and here ).

The Congress manifesto offers more promises than any government can reasonably hope to fulfil. It promises more rights and entitlements than any sane government should (homesteads, health), given the precarious fiscal situation. It claims more achievements than what squares with reality (high growth, but fairly jobless growth, a slowing economy with built-in inflation boosters, and a weak climate for economic optimism).

However, once we get away from the deceitfulness, or otherwise, of the manifesto, the Rahul Gandhi vision cannot be clearer. The manifesto is beautifully crafted and forms a comprehensive political package that intellectually and philosophically presents a coherent and consistent Left-wing approach - with a few phrases thrown in about growth and business-friendliness. The manifesto would be entirely believable if offered by any party other than the Congress, which has been in power for 10 years and shown us what it can or cannot do. We know where these policies can lead - to slowdown and fiscal bankruptcy - and so may not work for the Congress itself this time.

It would have worked quite well for, say, the Aam Aadmi Party, which is as yet relatively untainted by failure and scandal.

However, that said, the manifesto offers a huge, huge challenge to the economic and political Right (read: the BJP) that has so far been unable to come up with a counter-narrative and ideology. The Congress manifesto's Left tilt will be difficult to counter in a one-man-one-vote consumerist democracy where the wares offered are tantalisingly visible but the price tags are not.

The Right can offer capitalism, free markets, fiscal discipline, higher growth and trickle-down economics as rewards for the poor, but these come later and are less visible to the voter. What we all can see, in 70 mm screens and with Dolby sound to boot, is that the rich will get richer first and inequalities will widen before the poor get any less poor. This is why the Congress did better in 2004, and this is what it is hoping will do the trick this time too. The BJP looks like a party for the haves, not the have-nots.

To be sure, this explains the dilemmas facing all Right-wing parties anywhere, and especially in a country with a numerically large population of the poor or near poor.

The Right, if it remains true to its ideological roots, can merely offer a path to better outcomes in future while the Left can offer a visible buffet to today's hungry planet. The Right can offer economic virtue while the Left can offer instant vice.

It is difficult to sell Right-wing fidelity and virtue if the Lefties next door have opened a raucous porn shop.

Before an election, even a bankrupt Left-wing party can offer redistributive ideas that no one can oppose while the Right is left carping and nitpicking about some minor detail or the other in the Congress manifesto. So far, the Indian Right has found it difficult to come up with electorally attractive ideas that are also economically sound and constitute a viable and differentiated alternative.

The Congress manifesto, with an extreme focus on rights, entitlements, freebies and sugar-coated goodies, will appeal for the simple reason that it offers everyone everything. The Right is stuck with offering the same things - but with a vague promise that it will be fiscally more faithful and celibate.

If we look at the Right-wing stance in the recent past, this is exactly what happened.

In the last one year, the Congress has pushed all its Left-wing legislation - food security, land bill, etc – even without a viable parliamentary majority. The BJP was left frothing at the mouth, offering irrelevant objections, and unable to set the agenda. If Salman Khurshid's evocative phrase - napunsak - has to be applied appropriately, it is to the situation where the BJP proved impotent to oppose even bad legislation. It was reduced to claiming that's its version of these bills would have been even more generous - exactly the opposite of what its alleged Right-wing ideology would call for. The BJP even went along with the idea of reservations in promotions in the Lok Sabha and was saved from ignominy in the Rajya Sabha by the Congress' inability - or unwillingness - to find the numbers.
The BJP's ideological dilemma suggests that in India there can be only Left-wing parties and Leftist politics. The difference is in the shade of red you espouse. We can start with the regional parties that are populist and moderately Left. We then have the Aam Aadmi Party to the Left of the regional parties, followed by the Congress (as evidenced by its manifesto) to the Left of AAP; then we have the traditional Left (CPM, etc), which are to the Left of the Congress; finally we have the various Maoist groups that are to the Left of the Left. If we have any more parties that want to go even further Left, they will surely fall off the map.

The party left out in the cold is the BJP, which now has to pretend it is Lefter-than-thou to combat the Congress, even while throwing some right-of-centre lollipops to its core middle and upper class constituencies. In any other country the BJP would be considered a mildly confused centrist party whose heart is somewhat Right-wing, but the mind is pulling Left for electoral reasons.

The only thing that distinguishes the economic ideology of the BJP from that of the rest of the Left is the expectation that in government it will indeed be deceitful: promise a Left moon while delivering a more Right-of-centre economic policy in practice.

This is what Vajpayee did. After promising Gandhian socialism - whatever that means - he gave us moderate reforms, even deregulation and (wonders or wonders) some privatisation. He gave us a reforming fiscal balance, low inflation, more elbow room for private sector growth, and a vision of smaller government.

If you notice what Modi has been saying on economic policy - he has actually been saying very little. Beyond promising "less government, more governance" his political speeches have talked more about the poor, the farmers, jobs, unemployment and inflation. Good things to talk about, but meaningless without a prescription or roadmap on how to get there. He has also been talking urban politics, but so have the others.

The best one can hope for from a BJP manifesto is more of the same: deceitful, but hinting at something else.

The big question to ask is: is there real scope for Right-wing economics in India? I hope to address this question in another article, hopefully once the BJP puts out its own document of deceit.

The writer is editor-in-chief, digital and publishing, Network18 Group


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10 shades of elections 2014: Campaigns that are painting India red

SLIDESHOW

Sat, Mar 29, 2014 at 16:55

| Source: Moneycontrol.com

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.


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Avoid midcap stocks for 2-3 trading sessions: Bhamre

Siddharth Bhamre of Angel Broking is of the view that one may avoid midcap stocks for 2-3 trading sessions and advises holding on to largecap stocks.

Siddharth Bhamre of Angel Broking told CNBC-TV18, "We continue to maintain our long positions. Technically this market has not corrected or not shown any meaningful dips. When I say meaningful dips I am just talking of 50-60 points, that is less than 0.50 percent since last one and a half months. Approximately around February 14-15 this market started rallying. We are waiting for dips to buy. Those dips have not come. One can categorise domestic participants into two categories, one who was bearish and second one who was bullish but did not participate. It is only FIIs who are participating in this market."

"Now also people are getting frustrated because there is no dip. PSU banks and midcap stocks have gone up by 10-20 percent in a week's time, infact midcap stocks going up 10-15 percent in a days time. This is a frustrating rally by people who have not participated. Today most of the large caps were sedate. What we are expecting for next couple of trading sessions is that this market would now probably take a pause or show 60-70 points correction in next two trading sessions – Monday or Tuesday. In this 60-70 points correction which does not change our view on the overall trend is that we are positive on markets. People who have missed out on big rally from 6150 to 6700 would get trapped in midcap stocks which they have gone long. In this 70-80 point correction midcap stocks may correct significantly, I am talking about 8-10 percent which would certainly trigger their stop losses because even if they have gone up 10-12 percent in a single days time frame, people have not got in when they were one or two percent up. They have got in when stocks were already 7-8 percent up. So, market remains in a positive trend. The dip may come in next 2-3 trading sessions. However that dip may not come in large cap, they would come in midcaps where people are long," he said.

"So, continue to hold on to long positions in Nifty, Bank Nifty and large caps. Avoid midcaps for 2-3 trading sessions. That would be our advice for the coming week."


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Short Maruti Suzuki, advises Siddharth Bhamre

Siddharth Bhamre of Angel Broking recommends shorting Maruti Suzuki India at current levels as the stock may shed 90-100 points and test Rs 1844.

Siddharth Bhamre of Angel Broking told CNBC-TV18, "The built-up in Maruti Suzuki India  is very huge in the last series. Price action no doubt is the biggest outperformer in this sector with huge addition of long positions, the rollover was also high. In today's market scenario when midcaps did well, large cap were also fine."

"In the last two trading sessions Maruti has been showing a downward tick. I am not expecting this stock to crash but what I am expecting is because of this long unwinding, the stock can show a dip of 90-100 points and we want to capitalise on this. That is the reason we are shorting Maruti. Our target is around Rs 1844 which is like 90 points from current levels. Fix a stoploss somewhere around Rs 1970 and go short in Maruti," he said.

Also Read:  See better sales in Mar; will launch Ciaz in Q2FY15: Maruti


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The Future Of MA

Published on Sat, Mar 29,2014 | 18:02, Updated at Sat, Mar 29 at 18:02Source : CNBC-TV18 |   Watch Video :

The hottest deals, the biggest challenges, the best dealmakers! In this special edition of The Firm, we discuss the future of M&A with Adam Emmerich, Partner, Wachtell Lipton; Christopher Saul, Senior Partner, Slaughter and May; Janet Hui, Partner, Jun He; Sergio Sánchez Solé, Partner, Garrigues; Marc Reysen, ‎Partner, O'Melveny & Myers and Cyril Shroff, Managing Partner, Amarchand Mangaldas.

2.21 trillion dollars of deals done; yet 2013 clocked lower global M&A activity than 2012 and was the slowest year since 2010. But 2014 has begun with a bang. 700 billion dollars in deals already done, that's 54% more than last year. Half of those were deals worth 5 billion dollars and more. At 45 billion dollars, COMCAST's deal to buy Time Warner Cable is the year's biggest so far – but the award for most breathtaking goes to Facebook's acquisition of Whatapp – 19 billion dollars for a 5 year old company with just 20 million dollars in annual revenue but a global user base of 450 million.


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Weather in Allahabad and Kanpur in the coming months

Being situated at the confluence of the three rivers Ganga, Yamuna and Saraswati, the ancient city of Allahabad welcomes a lot of tourists throughout the year. But the coming months are extremely uncomfortable for the residents of this place and the nearby city of Kanpur. Let's find out the reasons.

Weather in Allahabad

Allahabad is an ancient city with aspects of modernity but the city very well holds onto its roots. Here taxis and busses are available but the main transport still remains rickshaws and tongas.

According to the latest weather update by Skymet Meteorology Division in India, pre-monsoon showers are generally accompanied by strong dust and hail storms, which impair visibility in the region. The month April could experience a couple of them and its intensity increases in June and July.

The monsoon trough passes from the metropolitan city of Allahabad and the variation of weather conditions is more here. This city of Uttar Pradesh will observe a huge variation in temperature, humidity and winds in the coming months. The average temperature rises from 33.3°C in the month of March to 39.4°C, the next month. The monthly average for May peaks at 41.6°C. Hot and humid conditions prevail till the end of the 1st week as the monsoon current reaches the city between 10th and 15th of June. The average temperature for the month is still very high at 39.6°C, as the temperatures drop only after mid-June.

June is the most uncomfortable month for this city, also known as Prayag simply meaning 'place of offerings'. In the next month, day temperatures remain at a comfortable range with a mean average of 34.2°C.

Weather in Kanpur

Kanpur lies just 100 kms northwest of Allahabad and experiences similar weather conditions. The temperatures in Kanpur are just a shade lesser with mean average maximum for March and April being 32.3°C and 38.3°C. In May average maximum rises to 40.7°C and comes down to 39°C in July.

In both the cities, maximums drop considerably in July with an average of 34.2°C in Allahabad and 33.8°C in Kanpur. Monsoon withdraws by the end of September in these cities.

picture courtesy- maa rukmani travels

By: Skymetweather.com


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