Don't need Budget 2013 to resuscitate contribution cycle: Kotak

F

inance minister P Chidambaram's Union Budget 2013-14 has garnered mixed reactions from market and India Inc. Sanjeev Prasad, ED & Co Head, Kotak Institutional Equities told CNBC-TV18 that the steps in Budget were necessary, but not sufficient.

Prasad does not see revival in investment cycle from measures announced Budget alone. "You require more follow on steps if you need to revive investment cycle. For that you still require a lot of clarity on land acquisition process, resource allocation process, approval process, all those things need to be put in place if you need to revive investment cycle," he adds.

Below is the verbatim transcript of Sanjeev Prasad's interview on CNBC-TV18

Q: What is your view on the foreign institutional investor (FII) investment routed through Mauritius? Do you think there has been enough clarity overnight to suit the investors?

A: I assume some clarity will come. So far we haven’t seen anything, but given that India requires large amounts of capital flows in various forms whether it is FII equity, FII debt, external commercial borrowing, we require that given a very high current account deficit leading to some clarity. So far, there is a fair amount of confusion as to the applicability of section 90 (A).

As far as the tax residency certificate (TRC) is concerned, one needs to know its role for some of the FIIs which are operating out of tax free jurisdiction such as Mauritius. Whether the income tax authorities will have the authority to look at some of these transactions which are being outright through Mauritius and whether they could potentially come under the tax net. Let us hope for some quick clarification.

Q: Has FM done anything to address the problem of the investment cycle which is our core problem? Did you come away disappointed on that front?

A: Yes. Necessary, but not sufficient that applies to the investment side also. There were some steps which were taken but I don't think they were sufficient enough to excite the investors whether it is entrepreneurs or FIIs or who so ever looking at India more favourably as an investment destination. The only real thing which has happened as far as investment is concerned is the investment allowance issue which a lot of companies would anyway have in other tax benefits. Many of these companies would anyway be under map because of commissioning of new plant.

It is not as if the investment cycle is going to change dramatically based on the announcements which came in the Budget. You require more follow on steps if you need to revive investment cycle and for that you still require a lot of clarity on land acquisition process, resource allocation process, approval process, all those things need to be put in place if you need to revive investment cycle.

The big challenge for India is to do some reforms over the next six-eight months and then again go into slumber as far as reforms are concerned. This start and stop process will not be good for investors who want to take a call on investing money into India whether it is portfolio guys or industrialists, entrepreneurs.

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Sensex Down 300 Points Today : Thursday Market Outlook

At 3:12pm (IST), the BSE Sensex was trading at 19334, down 307 focuses over the past close. It had prior touched a day's towering of 19554 and a day's level of 19317. It opened at 19549. 

The NSE Nifty was citing at 5,862 down 80 focuses over the past close. It prior touched a day's towering of 5,921 and a day's flat of 5860. It opened at 5,909. 

The BSE Small-Cap file and BSE Mid-Cap record was bartering down 1%. 

Sun Pharma, Cipla, Bajaj Auto files are right around gainers in Sensex and Nifty. 

RIL, Infosys, Wipro, NTPC, TCS, SBI, ICICI Bank, Tata Steel, Hero MotoCorp, ONGC, Dr Reddys Lab, Tata Motors, Hindalco Inds, Mahindra & Mahindra, Bharti Airtel, BHEL are around washouts in Sensex and Nifty. 

Shopper Durables records is just the gainer. 

Oil and Gas , HC, PSU, Power,Realty, Metal, IT, Teck, Bankex, Capital Goods are the flops. 

The rupee deteriorated by 25 paise to 54.32 opposite the dollar. 

On Wall Street, the Dow Jones streamlined normal dropped 0.77%, to 13,927, while Standard & Poor's 500 Index fell 1.24 percent, to 1,512. 

The Nasdaq Composite Index lost 1.53 percent, to end at 3,164. 

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Tata Motors Share Tips

Tata Motors :

Volume 400,380

Prev close 306.90

Day's H/L (Rs.) 309.10 - 302.10

52wk H/L (Rs.) 337.05 - 202.95

Mkt Cap (Rs. Cr) 96,826.38

Live Tip : Sell Tata Mot at Rs 302.90 Stop Loss Rs.305.90 Target Rs.297

Fore updates here - Stock Market Updates

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Nifty above 5,900; DLF surges : Indian Market Tips

The stock exchanges edged up consistently floating close to the day's heightened in evening exchange with the Nifty intersection the 5,900 levels, floated by additions in Asian associates. Japanese partitions surged 2.1 for every penny and were on the edge of returning to four-year highs tapped as of late, as the yen drooped after Tokyo avoided run sentiment from G20 associates on its domineering reflation arranges that have debilitated the cash. 

At 12.42 p.m., the 30-portion BSE Sensex was up 0.29 for every penny at 19,524.49, while the 50-portion NSE Nifty exchanged 0.24 for every penny higher at 5,901.75. 

Twenty of the 30 Sensex stocks bartered in the green. HDFC, up 1.71 for every penny, headed the additions accompanied by Hindustan Unilever (1.41 for every penny), Hindalco (1.32 for every penny), Larsen & Toubro (1.18 for every penny) and Tata Steel (1.04 for every penny). 

The DLF stock climbed sharply (5.5 for every penny) after the administration's bullish critique in its lady investigator meet. Examining the three-year viewpoint for the association, Rajiv Singh, vice executive of the realty gathering, stated it is focusing on cutting its net obligation by 50 for every penny by means of a value issuance over the following two or three years. DLF will soon come back to surplus unlimited money rush domain, he included. 

Firm CLSA updated DLF to beat from advertise with a target value of Rs. 280 versus Rs. 180 previous. 

Coal India was the greatest flop on the BSE benchmark file, shedding 1.8 for every penny. The other washouts incorporated Jindal Steel & Power (1.4 for every penny) and Dr Reddy's Laboratories (1 for every penny). 

IT stocks TCS and Infosys too fell 0.98 for every penny and 0.19 for every penny, individually, while Wipro, which was down in promptly barter, recouped to addition 0.64 for every penny. 

Plane Airways pressed on to exchange in the red falling the same as 6.8 for every penny after Etihad Airways executive stated the Abu Dhabi-based transporter should change its bargain to purchase a stake in the Indian bearer. Sheikh Hamed receptacle Zayed al-Nahayan likewise advised Reuters it was so soon it was not possible state when a last assention between the two transporters might be struck. At 12.42 p.m, the stock changed at Rs. 585.90, 5.25 for every penny more level. It has touched a heightened of Rs. 605 and a level of Rs. 572.20 in exchange today. 

DB Realty imparts climbed the same as 4.4 for every penny after ICICI Bank discharged a part of the regulating stakeholders' promised offers after the property visionary repayed a part of its credit from the bank. DB Realty has viewed imparts equal to 11.04 for every penny of its paid-up capital came back to the property artist, as per a trade documenting. At 12.42 p.m., the stock was up 0.91 for every penny. 

Oil advertising associations expanded after the upward update in the value of petrol and diesel late Friday. Indian Oil was up 0.3 for every penny, BPCL rose 1.26 for every penny and HPCL was up 1.37 for every penny. 

Sugar stocks climbed after Food Minister K V Thomas stated on Friday that the Centre is prone to take a choice on decontrolling the Rs. 80,000 crore industry in the following 15 days. Balrampur Chini was up 2.16 for every penny, Shree Renuka Sugars rose 4.19 for every penny and Bajaj Hindusthan was up 5.11 for every penny. 

Assumption remains wary as all eyes now on the Budget which could be tabled in Parliament on 28 February. 

Market members are holding up to see depending on if it will furnish monetary change measures or if the legislature will expand using beyond the general races in 2014. 

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Nifty shuts off day elevated; United Breweries, MCX colossal washouts

Benchmark indices shut everything down well off their intra-day highs as the exchange deficiency further extended in January, underscoring the proceeding powerlessness in the economy. 

The Sensex shut at 19608.08, up 47 focuses following slipping from an intra-day elevated of 19723.01. The Nifty shut at 5932.95, up 10.45 indicates, following touching 5,969.50 intra-day. 

Offers got off to an awakening begin and appeared set to support the force till the exchange shortfall numbers were reported. Sends out rose 0.8 percent, yet this was counterbalanced by a 6.1 percent increment in imports, augmenting the shortage for January to USD 20 billion, up from USD 17.6 billion in December. 

The most cutting edge discouraging information returns on the of an easier GDP gauge for FY13, falling modern yield, and climbing purchaser expansion. Investigators and reserve bosses are presently doubtful of an expedient recuperation in corporate income, given the ground actuality. 

United Breweries imparts fell around 9 percent to Rs 642.50 and bested the record of washouts, after a SBI-headed consortium of loan specialists chose to bring in their advances to the weak Kingfisher Airlines, part of the UB aggregation. There is hypothesis that United Breweries allotments might be part of promoter Vijay Mallya's private assurance to the moneylenders. 

Allotments of UB aggregation leader United Spirits apportions fell around 5 percent to Rs 1862, while bartering in Kingfisher Airlines stakes was solidified at the easier closure of the 5 percent intra-day circuit channel at Rs 10.54 after there were just venders. 

MCX was the other major flop of the day, falling over 6 percent to Rs 1200, emulating the lukewarm begin to MCX-SX's value stage. 

IT offers were right around the best entertainers of the day as speculators at the end of the day got into a preventive mode. HCL Tech and Mphasis headed gainers, climbing in regards to 3-4 percent. 

Auto was the second best performing segment of the day even as it is situated to end the present money related year on a sullen note due to declining bargains. 

Metal, power and realty were the most noticeably bad entertainers of the day. 

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