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Friday 8 April 2016

Facebook drops marked substance limitations for distributers

Advertisers typically pay publishers and social celebrities for branded video or advertorial campaigns based on how many people see that branded content. And Facebook can be a super-easy way to get that content in front of a lot of people, especially if a publisher or celebrity can post that paid-for content to their own Facebook page for free distribution and maximum profit. But distributing paid-for content organically on a Facebook page without Facebook’s permission has been against the company’s rules. Not anymore.

On Friday, Facebook dropped its restriction around how branded content can be distributed on its social network. Anyone who runs a verified Facebook page — a publisher, brand or celebrity, for instance — can now post articles, videos, photos, links or other content to that page that someone else paid for without needing Facebook’s permission or cutting the company in on the proceeds.

The move potentially opens the floodgates for publishers and other creators to make more money by producing content for brands and keeping a larger chunk of it. Facebook’s billion-person daily audience offers a lot of eyeballs for their branded content, and now they can sell brands on those eyeballs without splitting any of that revenue with Facebook.

Of course, that assumes that publisher’s branded-content posts will receive the same level of organic distribution in people’s news feeds as their non-branded organic posts. If people engage with the branded posts as much as they do with the normal posts, that should remain the case. But Facebook has a history of shutting down the organic reach of content that’s too promotional.

There’s another catch: any eligible account posting content paid for by a brand to its Facebook page has to tag the brand so that the top of the post carries the line “[Publisher] with [Brand].” That tagging creates a way for marketers to be notified when a publisher posts content that’s paid for by their brand so that they can share it or promote it as an ad.

Example of the branded content on a Facebook post.
Facebook will require pages to tag brands when posting branded content organically.
It’s unclear whether Facebook’s branded-content tag will be enough for the Federal Trade Commission, which has been cracking down on branded content that’s not properly labeled. The FTC’s disclosure guidelines aren’t very clear. For example, the organization said in December 2015 that disclosures like “Presented by [Brand]” or “Brought to You by [Brand]” could suffice, “depending on the context” when they’re attached to content that an advertiser paid for but did not create or influence.

An FTC spokesperson was not immediately able to comment on whether Facebook’s tagging system complies with the FTC’s guidelines. We’ll update this post when we hear back.

Update: The FTC has decided it doesn’t want to say anything about Facebook’s branded content tags specifically, but its spokesperson sent over a statement. “All advertising promotional messages should be identifiable as advertising, regardless of where they appear. As our guidance for businesses on native advertising notes, everyone who participates directly or indirectly in creating or presenting native ads should make sure that ads don’t mislead consumers about their commercial nature,” the FTC said.

The branded-content tags also let Facebook know if a piece of content is branded. That knowledge could be used by Facebook’s computers to start automatically recognizing branded content. That system would be handy if ever Facebook saw all of the money publishers and creators were making from posting branded content on Facebook and decided that, actually, it does want a cut. But there’s a chance that Facebook will follow YouTube’s example and will keep things free in order to curry favor with companies building businesses — and entertaining audiences — on its platform.

The branded-content tags will also help Facebook make sure paid-for content doesn’t violate its branded content policies. Those policies prohibit pages from inserting traditional ads, like pre-rolls and banners, into a piece of branded content, as well as title cards spotlighting a sponsor or graphical overlays.

Monday 16 February 2015

Sensex, Nifty flat; Hero, ICICI Bank, Infosys drag 1-2%



The market has gone flat as the Sensex is up 89.42 points at 29184.35. The Nifty is up 23.10 points at 8828.60. About 1257 shares have advanced, 1386 shares declined, and 199 shares are unchanged.

M&M, Bharti Airtel, ITC, HUL and Tata Steel are top gainers in the Sensex. Among the losers are Sun Pharma, Hero Motocorp, ICICI Bank, Axis Bank and Infosys.

Wholesale prices declined an annual 0.39 percent in January, their second fall in three months, on the back of a sharp correction in oil prices, government data showed. The reading for November wholesale price inflation was revised to -0.17 percent from 0.0 percent earlier.

Oil prices steadied as Japan's economy emerged from recession and as strong demand for refined products translated into healthy orders for crude.

Japan's economy rebounded from recession in the final quarter of last year, supporting oil prices, even though the data was weaker than expected. Analysts said that healthy demand for refined products was also buoying crude markets.

Friday 13 February 2015

Sensex reclaims 29000, Bank Nifty surges; auto & pharma up



1:50 pm ITC shopping: FMCG major ITC has entered into an agreement with Johnson & Johnson to acquire its brands, 'Savlon' and 'Shower To Shower', in India. This acquisition will be ITC's first purchase in the personal care segment. "The company entered into asset purchase agreements with Johnson & Johnson Ltd, India & Johnson & Johnson Pte Ltd, Singapore yesterday for purchase of 'Savlon' and 'Shower To Shower' trademarks and other intellectual property, respectively, primarily for use in India," ITC said in a BSE filing.

Savlon is an antiseptic brand while Shower To Shower is a personal care product brand. These agreements are subject to customary closing conditions and regulatory permissions as may be necessary, it added. During the third quarter ended December 2014, ITC reported 10.47 per cent rise in net profit at Rs 2,635 crore as against a net profit of Rs 2,385.34 crore in corresponding quarter a year earlier.

1:30 pm Result poll: M&M will announce its third quarter earnings on Friday. Consolidated net profit is expected to decline 39 percent year-on-year to Rs 615 crore, according to a poll. Consolidated numbers include Mahindra Vehicle Manufactures numbers as well. Total income of the utility vehicle maker is seen falling 13 percent to Rs 8,900 crore during October-December quarter from Rs 10,241.6 crore in same quarter last year, dented by lower sales volumes.

Don't miss: Coal India up; analysts bet on high e-auction volume in Q4

The market continues to surge as the Sensex is up 207.54 points at 29012.64. The Nifty is up 67.75 points at 8779.30.  About 1391 shares have advanced, 1209 shares declined, and 200 shares are unchanged. 

SBI, M&M, TCS, Sun Pharma and Wipro are top gainers in the Sensex. Among the losers are BHEL, GAIL, ONGC, HDFC Bank and Infosys.

Japan's Nikkei share average fell on Friday, retreating from a 7.5-year closing high the previous day as investors took profits from gainers such as Fanuc Corp, but buying in cyclical stocks exposed to consumer demand limited the losses.

A ceasefire agreement between Russia and Ukraine also eased tensions in the market. The Nikkei shed 0.4 percent to 17,913.36, retreating from 17,979.72 marked on Thursday, the highest closing level since July 2007. For the week, the Nikkei gained 1.5 percent.

Thursday 12 February 2015

Sensex, Nifty open firm; SBI gains 2%, BHEL drags 5%



9:55 am Market outlook: Aggregate earnings of Sensex companies for FY16 is likely to see a downgrade, says Rajat Rajgarhia, MD-Institutional Equities, Motilal Oswal Securities.

On the positive side, earnings growth for next year could be in excess of 15 percent, says Rajgarhia in interview the sidelines of the Make in India conference hosted by Motilal Oswal.

He does not see any earnings recovery for the next couple of quarters, and sees FY15 earnings growing 5 percent against 10-11 percent estimated earlier.

At the broader level, earnings in the December quarter are down 3-5 percent, he says.

9:45 am Result poll: SBI will announce its third quarter earnings on Friday. Profit for the quarter is expected to jump 45.7 percent year-on-year to Rs 3,254 crore supported by treasury income, fee income and operating profit. The sharp rise in profitability is also on account of low base in the year-ago period. Profit in Q3FY14 fell 34 percent Y-o-Y to Rs 2,234 crore as provisions jumped 56 percent Y-o-Y to Rs 4,150 crore. Net interest income, the difference between interest earned and interest expended, may increase 8 percent to Rs 13,654 crore during October-December quarter from Rs 12,640 crore in same quarter last fiscal.

9:30 am Brokerages on BHEL: Most brokerages are negative on the stock and lowered target price. However, the stock closed with a gain of 5 percent in yesterday’s trade even after the earnings were announced before market closing.

Due to extremely weak December quarter, JP Morgan is underweight on BHEL, cutting target price by 25 percent at Rs 200. The brokerage has also reduced its FY15 and FY16 EPS estimates by 27 percent and 13 percent respectively on the back of severe execution challenges and possibility of deferral of order prospects. It states that either BHEL’s order book is slow moving or non-moving.

BHEL’s outstanding order book was at Rs 1,03,900 crore as on December 2014, increased marginally from Rs 1,03,700 crore in Q2FY15 and Rs 1,00,600 crore in Q3FY14.

Don't miss: New CPI moves up to 5.11% in Jan; Dec IIP slows to 1.7%   

The market has opened higher. The Sensex is up 71.07 points at 28876.17 and the Nifty is up 29.95 points at 8741.50. About 464 shares have advanced, 144 shares declined, and 136 shares are unchanged.

SBI is up 2 percent while ICICI Bank, Hero, Dr Reddy's Labs, and Sun Pharma. BHEL is down 5 percent and Coal India, ONGC, Infosys and M&M are losers in the Sensex.

The Indian rupee gained in early trade. It rose 18 paise to 62.13 per dollar against 62.31 Thursday.The dollar drops across the board after weaker-than-expected US economic data.

Pramit Brahmbhatt of Veracity said, “Today local indices are expected to trade strong as Asian markets have already opened in green taking cues from the news of a ceasefire in Ukraine. Rupee is also expected to appreciate with the support of strong local equities. Range for the day is seen between 61.90-62.70/dollar.”
Meanwhile, Asia was mixed in morning trade as a stronger yen curbed risk appetite in Japan.

The stocks in the US closed sharply higher as investors cheered a cease-fire agreement between Russia and Ukraine, amid firming oil prices and strong earnings reports. The Nasdaq closed up 1.18 percent to 4,857 its highest level since march 2000.

On the economic data front in the US, retail sales for January came in weaker than expected, down 0.8 percent and near December’s 0.9 percent decline. Jobless claims were at 304,000 last week, more than expected and an increase of 25,000 from last week

In Europe equities ended higher with investors cheering a peace deal agreed between Ukraine and Russia. The German DAX - which is exposed to the Russian market - ended up 1.5 percent higher. A slew of corporate earnings also helped to boost sentiment in the region.

In commodities, Nymex Crude rose above USD 51 per barrel as news of deeper industry spending cuts and a sinking u-s dollar revived buying. Brent crude rises to USD 59 per barrel.

From precious metals space, gold remained largely unchanged, hovering around USD 1220 an ounce. The metal is headed for its third weekly drop.

Nifty ends above 8700, Sensex up 271 pts; BHEL gains 5%


3:30 pm Market close

The market ended higher with some last minute buying. The Nifty closed above 8700-level. The 50-share index was up 84.15 points or 0.9 percent at 8711.55. The Sensex ended up 271.13 points or 0.9 percent at 28805.10

3:20 pm Big deal?

Pipavav Defence & Offshore Engineering Co denied it was in talks to sell a stake to Mahindra & Mahindra Ltd, after a media report said it was close to clinching a deal.

A media report said techonology-to-automative conglomerate Mahindra would purchase a stake in Pipavav for about Rs 3000 crore (USD 481.15 million), in a phased transaction that would eventually see it own a majority share.

"There are no negotiations/agreements which the company has entered into which requires disclosure under clause 36 of the listing agreement," Pipavav said in a regulatory statement.

03:10 pm Market check

The market is clenching back its gains. The Nifty is above 8700-level. The 50-share index is up 87.35 points or 1 percent at 8714.75. The Sensex is up 241.93 points or 0.8 percent at 28775.90. About 1582 shares have advanced, 1190 shares declined, and 233 shares are unchanged.

Dr Reddy's Labs, BHEL, Cipla, GAIL and Maruti are up 2-5 percent each while HUL, Bajaj Auto, Bharti Airtel, Coal India and SBI are losers.

02:40pm Interview

Escorts posted a 21.5 percent decline in its third quarter net profit to Rs 35.7 crore impacted by lower revenue and operating income in tractor business. Total income fell 9.8 percent to Rs 1,046.4 crore during October-December quarter from Rs 1,159.6 crore in the year-ago period due to 16.6 percent drop in tractor sales volumes.

Discussing the earnings, Bharat Madan, Group Financial Controller at Escorts, said some cost-cutting exercises in the company have been bearing fruit. He feels a normal monsoon prediction this year will be positive for the industry. However, he does not see major jump in tractor sales in the near-term.

Escorts is bullish on construction. The company is hopeful that a revival in the infrastructure sector will actually push demand. “We are expecting the topline to grow on the construction side definitely,” Madan said.

02:20pm FII View

Dismissing the recent market correction as a “bit of a reality check”, Richard Gibbs of Macquarie said the India economy had several positives going for it and added that foreign investors were now looking for strong leadership in the Union Budget that takes later this month.

In an interview Sumaira Abidi, Gibbs said he was not worried by the recent defeat of the BJP and said the central government still had a lot of political capital left with which to push its reforms agenda.

02:00pm Market Check

The market picked up pace in the last half hour as the Nifty climbed over 8650 level again led by gains in select pharma and auto stocks. The broader markets continued to outperform with the BSE Midcap and Smallcap indices rising 0.9 percent and 1.2 percent, respectively.

The Sensex rose 151.14 points to 28685.11 and the Nifty advanced 49.75 points to 8677.15. About 1537 shares have advanced, 1197 shares declined, and 244 shares are unchanged on the BSE.

Geoffrey Dennis of UBS is betting on India and China in 2015. As UBS moves to a more defensive position in Europe due to Grexit fears, he says the most secure EPS forecasts over 2015 are likely to be in India and China.

Global markets traded mixed. Investors remain cautious as concerns over Greece linger after euro zone finance ministers failed to reach a deal with Greece yesterday.

The rupee continued to trade above 62 a dollar and is headed for a fourth consecutive fall against the dollar. Bond yields remained largely unchanged ahead of the January CPI and December IIP data later today.

Dr Reddy's Labs and Cipla topped the buying list, up over 3 percent followed by Maruti Suzuki with 2.5 percent gains. Hindalco Industries climbed 2 percent after the company maintained its operating performance in Q3. Operating profit jumped 46.7 percent to Rs 923 crore and margin expanded 200 basis points to 10.7 percent in Q3 on yearly basis.

HDFC Bank, L&T, Axis Bank, Hero Motocorp, NTPC, GAIL, BHEL and Tata Power gained more than percent. However, ITC, State Bank of India, HUL, Bharti Airtel, Sun Pharma, Coal India and Tata Steel were down 0.4-1.4 percent.


Wednesday 11 February 2015

Sensex up 178, Nifty ends at 8627; Axis Bank, Reliance gain



03:30 Market closing

 The market ended in green for second straight day. The Sensex was up 178.35 points at 28533.97, and the Nifty ended up 61.85 points at 8627.40. About 1729 shares have advanced, 1076 shares declined, and 216 shares are unchanged.

Axis Bank was up 3 percent while NTPC, Maruti, L&T and RIL were top gainers in the Sensex. Among the losers were ONGC, BHEL, M&M, Cipla and Tata Motors.

03:20 pm Sugar sale

The world's second biggest sugar producer, is considering giving export incentives for 1.4 million tonnes raw sugar, Food Minister Ram Vilas Paswan, as mills started distress sale of the sweetener to pay cane farmers.

"The ministry's views is that we should give subsidy for 1.4 million tonnes...the paper has been circulated for a cabinet meeting," Paswan told. Without any government incentive, Indian sugar is uncompetitive in world markets well supplied by low-cost producers Brazil and Thailand.

Subsidies of Rs 3,300 a tonne helped exports of raw sugar last year and government sources said last month India was considering a rise in the subsidy to Rs 4,000 this year.

03:00pm Interview

IT services firm Cognizant has guided to a 16 percent growth for calendar year 2015 and believes its forecast is fair since it is seeing increased traction in all its businesses.

The company is also eyeing 19 percent growth for fiscal FY15 led by higher spending in healthcare. The forecast is higher than Nasscom’s projection of 12-14 percent growth exports for FY16. The Nasdaq-listed IT company has crossed the USD 10 billion revenue mark. 

Speaking Malcolm Frank said it will continue to focus on growth and surpassing its peers has been a natural by product. Cognizant bases its upbeat guidance on strong demand environment across services, that too after factoring in higher Visa costs. The company does not think US will pass its Immigration Bill in next two years.

02:45pm Ricoh India locked at 20% upper circuit

Ricoh India has turned profitable during October-December quarter with net at Rs 10.6 crore as against loss of Rs 0.2 crore in the year-ago period. The bottomline was supported by strong revenue growth and higher other income.

Net sales of the leading office automation company shot up 80.3 percent to Rs 409 crore in Q3FY15 from Rs 226.8 crore in same quarter last year.

Goods business increased 115.6 percent Y-o-Y to Rs 289.8 crore with EBIT loss at Rs 5.5 crore (against loss of Rs 8.5 crore in Q3FY14). Services segment reported a 29 percent growth at Rs 119.3 crore with EBIT rising 64.6 percent at Rs 34.4 crore in the quarter gone by.

02:30pm Syndicate Bank in News

State owned Syndicate Bank has registered a decline of around 20 percent in net profit for the third quarter ended December 2014 at Rs 304.99 crore. Bank's net profit in the corresponding October-December quarter of previous fiscal stood at Rs 379.76 crore.

Total income has increased from Rs 5,011.28 crore for the quarter ended December 31, 2013 to Rs 5,921.58 crore for the quarter ended December 31, 2014," it said in a filing to the BSE.

The net interest margin, a gauge of profitability, fell to 2.25 percent during Q3-FY15, from 2.76 per cent in Q3-FY14.

On the asset front, gross non performing assets (NPAs) or bad loans increased to 3.6 percent of gross advances, from 2.8 percent in the year ago period. Net NPAs were at 2.38 percent of net advances in the third quarter of 2014-15, up from 1.66 percent during the same period a year earlier.

02:00pm Market Check

It's a steady day of trade on Dalal Street. The market gained for the second consecutive day led by banking stocks. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 1.3 percent each.

The Sensex advanced 208.90 points to 28564.52 and the Nifty climbed 72.05 points to 8637.60. About 1603 shares have advanced, 1060 shares declined, and 224 shares are unchanged on the BSE.

Ajay Srivastava of Dimensions Consulting expects the market to rise in the run-up to the Budget. He says FIIs are mainly betting on largecaps and banking names. He remains cautious on PSU banks as he sees another deep correction if NPAs rise.

Global markets traded mixed. Investors are cautious ahead of a meeting of eurogroup finance ministers in Brussels to discuss a solution to the Greek debt crisis.

The rupee traded marginally higher today tracking strength in equities. The 10-year benchmark yield is rangebound ahead of retail inflation data due tomorrow.

TCS is confident of beating NASSCOM's 12-14 percent growth guidance for FY16. Natarajan 
Chandrasekaran, CEO & MD that the company is seeing growth across markets, adding government's push for digital India will aid revenues.

Jindal Steel topped the buying list on Nifty, up 8 percent followed by L&T, Bank of Baroda, PNB, Axis Bank, Reliance Industries, Maruti and NTPC with 2-3 percent gains.