PFC Tax Free Bonds

Hi,


A Good opportunity for High networth people to go for Tax Free Bonds with attractive Tax Free Interest rate of a public sector Govt. company with 'AAA' rating.         


The highlights of the issue is as under.
 PRIVATE PLACEMENT OF TAX FREE BONDS BY POWER FINANCE CORPORATION LTD.

 ISSUE TIME TABLE

Issue Opening Date	Thursday	September 29, 2011
Issue Closing Date & pay in date	Friday	October 07, 2011
Deemed Date of Allotment	Saturday	October 15, 2011

 HIGHLIGHTS OF THE BONDS

Issuer	Power Finance Corporation Ltd.
Issue Size	Rs. 150 crore with an option to retain oversubscription                                                            (PFC can retain total subscription amount of upto Rs. 5,000 crore)
Instrument	Secured Redeemable Non-Convertible Non-cumulative Tax-Free Bonds in the nature of Debentures Series 79
Tax Benefits	1.     The income by way of interest will be entitled to exemption from income tax under section 10 (15) (iv) (h) of Income Tax Act, 1961 2.     There will be no deduction of tax at source from the interest, which accrues to the bondholders in these bonds irrespective of the amount of the interest or the status of the investors
Instrument Form	In dematerialized form
Credit Rating	‘AAA/Stable’ by CRISIL and ‘LAAA’ by ICRA
Face Value	Rs. 1,00,000/- per Bond
Issue & Redemption Price	At par i.e. Rs. 1,00,000/- per Bond
Minimum Subscription	10 Bonds (Rs. 10.00 lakhs) and in multiples of 1 Bond (Rs. 1.00 lakh) thereafter
Options (Series)	Option-I  (Series 79-A)	Option-II (Series 79-B)
Tenure	10 Years	15 Years
Put & Call Option	None	None
Redemption Date	15th October, 2021	15th October, 2026
Coupon Rate	7.51% p.a.	7.75% p.a.
Interest Payment Date	15th October every year till maturity
Listing	Proposed on the Wholesale Debt Market (WDM) Segment of National Stock Exchange of India Ltd. (NSE)
Trustee	PNB Investment Services Ltd.
Interest on Application Money	At the coupon rate from the date of credit in PFC account till the date prior to the deemed date of allotment (to be paid along with the first interest)

The effective Pre Tax yield for Highest tax Bracket i.e. 30% slab People is

 @ 7.51% p.a TAX FREE = PRE TAX = 11.20% (FOR 10 YEARS)

@ 7.75% p.a TAX FREE = PRE TAX = 11.56% (FOR 15 YEARS)

Dollar Rupee Update

Hi, as mentioned in my First post of 28th August http://pinaltechnical.blogspot.com/2011/08/dollar-rupee.html Dollar did touch 48 level first & then to 49.95 level just below my 50+ target. Now it is hovering between 49.20 & 49.60. Now watch 49.60 & 49-48.80 levels carefully on closing basis, above 49.60 it can retouch 49.95, if it closes above 49.95 level may go for All time new High levels, if closes below 49/48.80 level may cool down  to around 47.50 levels. Still more clarity will come in mid of Next week. Till then stay Tuned.. 

Dollar Rupee Update - Effects of Weaker Rupee.

Hi Friends,


As said in my 28th August post today U.S.$ touched 48 Rupees in Intraday closing around 47.70. Now what is Next? One has to wait and Watch till Friday or Monday for future move. Current chart suggest that it may take some pause & cool down for sometime before further move.


Some of the Key reasons for sudden spurt looks like :-


1) FII's Continuous coming out of Indian Market & taking away Money Out of India.


2) More Imports then Exports by Various Indian Industries leads to more demand of $.


3) High rate of Crude Oil Basket compair to previous Month India Imports.


4) Various Quarterly Payments by RBI towards, payment of Interest Installments & Loan Installments to various world Bodies like World Health Organisation, World Bank Loan, Oil Import Bill Payment, Inter Country - Inter International Bank Loan settlement, Half yearly Indian Bank's Account Closing Foreign Exchange Loans adjustments etc.


5) When due to reasons mentioned above in 4) RBI himself become buyer of $, he can't sell $ in open market & thus can't control Rupee falling, which gives multiple effect & due to more demand for $ against Rupee gives sharp cut to Rupee Value in International Market, due to which most importers who has not booked their forward contracts gets panic & try to book their import commitment as fast as possible to survive from further weakening of Rupee.


Some of the Key effects due to Weak Rupee:-


1) Higher price of Crude Oil Import, resulting hike in Domestic Petrol Price or if No Hike then Bordon on domestic Oil Importing company. Crude Oil Bill is the Single largest Import Product & using Highest Foreign Exchange to pay Oil Import Bill.


2) If Government Hikes the price of Petrol then it will be having circular effect --> Hike in Transport price, Hike in Passenger Fare, Hike in Foods & Vegetables & other services --> Bringing more Inflation --> Compel to bring more Harden Steps towards Monetary Policy ---> Lower GDP Growth, --> Unfavorable Balance of Payment,--> More Fiscal Deficit means all Gloom & Doom for future, Resulting less demand & Less Industial Production & Growth.


3) If Government Does not hike the price of Petrol then, Oil importing & refining & marketing Company will have drastic effect.--> To survive their loss Govt. will issue more Petro Bonds to them, --> to adjust that Petro Bond payment, Govt. will borrow more from RBI and/or print more money -->thus will have more debt. Bordon --> will then either sell More Public Assets like Navratna's or sell of Lands/Mining Rights etc. to repay the Money Borrowed or --> will further issue more bonds to Borrow & repay the earlier Loans --> This will ultimately result in to More Fiscal & Monetary Deficit --> will lead to more Deficit Financing -->due to which faith of Foreign countries will more shaken & will think Thrice to Invest in India --> Resulting further downgrade of Indian Rating --> Resulting further weakening of Rupee against all Major Currencies. 


4) Last but Not the Least If FII still continue to sell then  FII will be Biggest looser if they have Brought Money say around @44 in the Mid Month of Oct.2010 & Taking away @48, they will make 8-9% Straight loss in Currency Exchange Rate & Other loss in Stock price to be added.


           Please note the above mentioned points are ultimately making 'Aam Adami' the so called 'Mango People' more Poorer and more Population will come below Poverty Line.


            Though it may seem scary picture the intention is Not to Scare anyone but to Awake, the events mentioned above are inter linked & assumed on certain basis & they may or may not happen, will ultimately depend on Government & RBI's further steps. Worse scenario can be avoided by RBI by taking some Crooked Thinking & taking some Hard Steps towards Unproductive Activity.


               There is a saying 'Export or Perish' but at this Junction it looks like 'Ulta'.. Opposite.


Looks like too lengthy ... so more Next time.. Till then stay Tuned..

Voltamp Transformer

Voltamp Transformer braking 518-520 levels on closing basis, may head towards 600+ levels, Accumulation below 500 with strict S.L. of 475-450 is advised on closing basis.

Dollar Index

Dollar Index looks like heading upward to 77.50 Any close above that may lead to 79-80-81 levels. On the other hand closing below 75.50 may drag to 74.50 or lower levels.

MCX CRUDE Update

Hi just updating MCX CRUDE. As mentioned earlier in my 28th Aug. post, brake out has been given towards upward & upward target is almost achieved at 4175 level, now watch 4050 level, close below that may head towards further fall upto 3850, any brake below that will attract towards further downfall to 3725 level or more. Close above recent high may lead to 4200-4250 levels.

Dollar Rupee Update

Hi just updating Dollar Rupee. As mentioned earlier in my 28th Aug. post, brake out has been given towards upward, a small pause, small downward is expected near 47 before moving ahead. 

Some of the Key Events

Dear Reader,


Some of the events to be watched closely in this month.


!) RBI monetary policy on 16th of September. 
Please note it will not be a normal policy, but it is Half yearly review & will be an indication of future steps RBI want to take for current Financial year till further Budgetary announcement.


I will be not surprise by increase in REPO & Reverse REPO by 50bps. I will also Not surprise if any changes by RBI in SLR & CRR ratio. As I feel the increase in REPO & Reverse REPO has not given that much effect the RBI wanted to, for controlling Inflation. So tight measures sure to check the Inflation on cards.


2) Watch Monsoon figures to be announced. 
Closely watch the figures of monsoon may be announced in last week of September.
Current figures suggest Some area is having more Rain then the Normal & some are having less then 50% of Normal Rain. Area having Agri product & depending on Monsoon will be highly affected with less rain & or excessive rain will ultimately Boost the Price of Food grains & Vegetables.


3) Watch FII Buying & Selling after RBI announcement. 
 Do check FII Buying & Selling after RBI monetary policy on Net Buying & selling, will help to determine the market future trend.


4) Last but not the least.
Do check announcement of Interest rate rise fall, bond yield curve after RBI policy & also check Inflation figures, IIP Data & other important Data.


Somebody will say I have said nothing new in this post. Well they may be right but it is a gentle reminder & its for those people who are not yet familiar with such terms & figures. Also for me Current RBI monetory policy is much of importance then the Normal one. So stay tuned for my Next post. Till then enjoy Festive season. Best wishes.

Welcome Note - Official First Post

Dear Reader,

Welcome to my Blog created for Stock & Investment consultancy. With Blessings of God Ganeshji & God Mahavirji Today on the auspicious day of Ganesh Chaturthi & Last Day of Jain Festival Paryushan I am officially opening this Blog for public. I am thankful to my Guru to give me the Inspiration & Guidance to learn the various aspects of Technical Analysis & taking initiative to start this Blog. I am also thankful to my Family Members to support & help me to start this Blog, I am also thankful to all my Friends & Relatives & Clients & Colleagues who have whole Heartedly supported & encouraged to start this New Venture. A special Thanks to the Visitors of this Blog who are backbone of this Blog.

Coming to my first posting, though two charts has been posted on 28^th August2011, just to check the outlook of posting & trial run of blog, the levels mentioned over there are still Valid as of today, do watch them closely & track them accordingly.

Though I have started this Blog posting Two Charts - Dollar Rupee & MCX Crude - it will not be limited to these two Charts, as and when I find anything interesting & Time permits will post my thoughts on other Stocks & Commodity & Currencies. Also apart from this I will be posting my way of Investing & Thoughts & Ideas on various Asset Class Including Bonds, F.D.’s, Debt Mutual Funds, Equity Mutual Funds, Gold, Insurance etc.

Last but not the least Please do not hesitate to give your comments, suggestions & even critics to improve myself & the quality of posting on this Blog. Please drop your lines to my emails pinals6@gmail.com & pinals6@yahoo.co.in  I will try my level best to implement the same as and when & as soon as possible. Do Keep visiting my Blog. If you like it Bookmark this Blog & add to your Favorite Folder. If you feel this Blog is useful to your Friends & Relatives, do not hesitate to share the link.

With Best wishes for Ganesh Festival, “Michhami Dukkadum”.