Forex|Stock Market|Stock Exchange|Stocks

BSE TASIS Shariah 50 Index won the prestigious Skoch Digital Inclusion Award 2011 in the Technology in Minorities and Weaker Section Development category. The award ceremony was held in New Delhi on September 1, 2011.

The continued growth of the Indian economy and its capital market has fueled the interest of Indian investors to participate and benefit from this growth. For Islamic investors this also translates into the need to invest as per the Shariah guidelines.

The preferred Islamic investment format is equity. However equity comes with ownership and hence Islamic investors have to ensure that the selected company's business and financial activities are not repugnant to Shariah norms. BSE TASIS Shariah 50 Index helps investors track listed Shariah compliant companies and their performance for equity investments, thus opening doors to access the capital markets.

You can find more information about the BSE TASIS Shariah 50 Index at
http://www.bseindia.com/about/abindices/shariah_50.asp

		(Rs. in Lakhs)
Particulars	For The Quarter Ended 30.06.11 (Unaudited)	For The Year Ended 31.03.11 (Audited)
INCOME
Operating Income	13,867.08	49,766.27
Other Income	686.02	4,038.48
Total Income	14,553.10	53,804.75
EXPENDITURE
Employee Costs	1,968.34	7,002.81
Computer Technology Related Expenses	1,178.50	5,825.93
Administration and Other Expenses	1,565.14	6,180.72
Depreciation	801.95	3,779.16
Total Expenditure	5,513.94	22,788.62
Profit Before Interest, Exceptional Item & Tax	9,039.16	31,016.13
Interest	37.24	75.70
Profit before tax	9,001.92	30,940.43
Tax Expenses	2,585.53	7,766.79
Net Profit For The Period	6,416.39	23,173.64
Less: Minority Interest	732.87	1,967.53
Add: Share of Profit of Associate (Net)	-	358.38
Profit after tax and share of associate	5,683.52	21,564.49
Paid up Equity Capital (Face Value Per Share Re. 1 Each)	1,034.08	1,034.08
Reserves (Excluding Revaluation Reserve)	-	211,446.73
Basic EPS after Extraordinary Item (*Not Annualised)	4.67*	19.05
Diluted EPS after Extraordinary Item (*Not Annualised)	4.67*	19.05

Notes: 1.    The above unaudited financial results for the quarter and period ended June 30, 2011 have been reviewed by the Audit Committee and approved by the Board of Directors on 24th August, 2011. 2.    The Statutory Auditors have carried out a Limited Review of the financial results. 3.    As per the definition of 'business segment' and 'geographical segment', contained in Accounting Standard-17 "Segment Reporting", the Management is of the opinion that the Exchange's operations comprise of two segments viz. a) Stock Exchange Activity b) Depository Services

	(Rs. in Lakhs)
Particulars	For the Quater Ended June 30, 2011
I     Segment Revenue
(a) Stock Exchange Activity	10,684.73
(b) Depository Activity	3,237.20
Total	13,921.93
Less: Inter Segment Revenue	-
Total Income	13,921.93
II     Segment Results
(a) Stock Exchange Activity	7,078.99
(b) Depository Activity	2,452.52
Total	9,531.51
Add : Unallocated Corporate Income	631.17
Less : Unallocated Corporate Expenses	1,160.75
Profit before tax	9,001.93
Tax Expenses	2,585.53
Profit after tax	6,416.40
III     Capital Employed	As at June 30,2011
(a) Stock Exchange Activity	189,933.97
(b) Depository Activity	27,719.63
(c) Unallocated	481.53
Total	218,135.13

s

4.    The Company appropriates income earned (net of taxes) on earmarked funds to the respective fund balances under Reserves & Surplus. Earnings per share for the respective periods is computed after adjusting for appropriations in respect of the earmarked funds. 5.    The Company in the current quarter has distributed dividend of Rs. 4/- per share aggregating Rs. 4,916.11 Lakhs (including Dividend Distribution Tax) as declared in its Annual General Meeting dated 29th June, 2011. 6.    Pursuant to the BSE (Corporatisation & Demutualisation) Scheme, 2005, (the Scheme) the Company intends to reorganize its operations through a Court approved Scheme of Arrangement by transferring its Clearing & Settlement business and related assets and liabilities to Indian Clearing Corporation Limited effective April 01, 2011. This proposed reorganization would be subject to receipt of necessary approvals/registrations from statutory authorities and the approval of the Scheme by the Court. 7.    The group commenced presentation of consolidated financial results from half year ended September 30, 2010, hence comparative figures for the previous period are not presented.
	For and on behalf of Board of Directors of
Mumbai, August 24, 2011	BSE LIMITED
	Madhu Kannan MD & CEO

Why trade currencies? The world’s most traded market – 24 hours a day Constant trading opportunity as the world’s currencies fluctuate in value against each other Trading around the clock from 10pm Sunday to 10pm Friday (GMT) Tight spreads reflecting real time market liquidity - check our live prices Flexible leverage up to 200:1

Market insights
With average daily turnover of US$3.2 trillion, Forex is the most traded market in the world. A true 24-hour market from Sunday 10 PM GMT to Friday 10 PM GMT, Forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York.
Daily turnover in the world's currencies comes from two sources:

• Foreign trade (5%). Companies buy and sell products in foreign countries, and convert profits from foreign sales into domestic currency.
  
• Speculation for profit (95%).
  

Forex currency pairs: Majors, Minors, and Crosses
Forex currency pairs are grouped into three categories:

• The Majors are the largest, most traded and most liquid currency pairs
• The Minors are the commodity currencies eg AUD/USD and the Scandinavian currencies
• The Crosses are currency pairs that do not include the US Dollar

Most traders focus on the biggest, most liquid currency pairs - more than 85% of daily Forex trading takes place in the Majors.

Beta currencies are back under pressure versus USD, mainly a result of deflating ‘EU rescue plan’ comments by German officials - Merkel’s spokesman Seibert stated ‘dreams that are taking hold again won’t be able to be fulfilled’. As a result, the market’s recent exuberance regarding a workable Oct. 23^rd Eurozone plan seems to be materializing into over-exuberance as previous EFSF conflicts still remain major roadblocks to sustainable crisis resolution. Ultimately, the issue at hand seems to come down to the timing of EFSF funds availability and its sovereign implications.
While Germany’s preference would be for the EFSF to be used as a ‘last resort’, France’s preference would be for the EFSF to serve as an immediate lender. If France were to succumb to Germany’s stance, France would have to recapitalize its own banks which would imperil its AAA credit rating due to ballooning public balance sheets on increased exposure to private bank debt. Moody’s already sent out a warning shot after-hours Monday by noting ‘France may face a number of challenges in the next few months & that challenges could mean new liabilities’.
US equities sharply reversed off the key 1220/40 resistance area highlighted last week while EUR/USD shed more than -1% on Monday as its stint above the 50% retracement of the August highs to October lows around 1.3835 and the 1.3900 figure proved unsustainable
Furthermore, Monday’s -1% EUR/USD sell-off was preceded by a steep tri-peak negative price/MACD divergence on hourly charts – the prior episode of negative price/MACD divergence with similar attributes saw EUR/USD lose more than 5 figures from high to low within days – resulting in the completion of a daily bearish engulfing candlestick pattern (composite rates) suggesting further weakness for the single currency may be in store in coming sessions.
On the flip side, initial EFSF usage as a bank recapitalization medium may put pressure on Germany’s AAA credit rating due to increased German capital requirements on the probable leveraging of  EFSF initial fund availability. Overall, the likelihood that the Oct. 23^rd Summit yields a ‘comprehensive resolution’ to the Eurozone debt saga seems to be declining each day and may be setting up for another round of ‘buy the rumor sell the fact’ type price action





























In addition to technical risks, there are a number of potential fundamental EZ periphery headline risks in the week ahead:

• Spain may see regional fiscal budget adjustments released sometime this week; any evidence that the aggregate fiscal deficit target of 6% could be missed would likely send risk assets for another ride lower.
• Greece faces a scheduled 24-hr strike this Thursday as the parliament votes on proposed labor reform measures, there is elevated risk for the measures to be vetoed due to its potential impact on trade unions tied to the PASOK party which holds more than half the 300 parliamentary seats; the heavily indebted nation may be a source of further downside for risk assets if the Troika publishes the results of its 5^th review within the week.
• Italy is not remiss from headline risks ahead of this weekend’s anticipated summit as the Italian Parliament is set to vote on three proposed legal decrees, the most significant being a 2013 budget targeting policy reportedly having fresh growth & fiscal measures and thus holding the potential to cause further political discord.

Considering the myriad of fundamental and technical hurdles standing in the path to further upside for EUR and therefore broader risk assets, we maintain the view that risk may remain under pressure in the medium to long term (as noted in previous FXTECHLAB posts; see below). Accordingly, we think any short term risk rallies may provide potential short opportunities; however, we think layering positions at key resistance levels and +1% intervals in the ‘risk on’ direction thereof may be appropriate to better absorb likely volatility spikes into the upcoming Oct. 23^rd rescue plan announcement.