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Recommendations
Thursday, March 29, 2007
Sharekhan Investor's Eye dated March 29, 2007
Gateway Distriparks
Cluster: Cannonball
Recommendation: Buy
Price target: Rs250
Current market price: Rs160
Gateway forms a 51:49 JV with Concor
Key points
- Gateway Distriparks Ltd (GDL) through its subsidiary Gateway Rail has formed a 51:49 joint venture with Container Corporation of India (Concor) to construct and operate a rail-linked double-stack container terminal at Garhi-Harsaru, 7 kilometre from Gurgaon in Haryana.
- The rail-linked inland container depot (ICD) currently operated by GDL will be transferred to the joint venture. The excess land (approximately 70 acre) owned by GDL will also be transferred to the joint venture and GDL will earn lease rentals on the same.
- The total cost of setting up the joint venture will be Rs70 crore which will be funded in the debt/equity ratio of 2:1.
- The revenues (handling charges and ground rent) arising from the joint venture will be shared in the ratio of the stakes held by the two companies.
- The profits from the rail operations for the movement of container rakes from the Garhi ICD to the ports will be equally shared between GDL and Concor.
- We maintain our bullish stance on the company as it will be the direct beneficiary of the growth in container traffic, which currently accounts for just 10% of the total cargo.
- The stock has significantly underperformed the Sensex in the last three months, declining by 21% over the period. So we believe this to be a good buying opportunity for the investors and thus maintain our Buy recommendation with a price target of Rs250.
VIEWPOINT
Glenmark Pharmaceuticals
An all-round growth
The recent developments on Glenmark are indicative of the management’s aggressiveness in growing the company. The management has been undertaking an all-round effort to grow in all the different segments of the business, whether it is expanding its product basket in the USA and Latin America, entering new markets like Europe or creation and unlocking value from assets created out of its research and development (R&D) assets. Through selection of niche, difficult to manufacture products with limited competition for the US market, Glenmark has been able to capitalise on each of its products and grow its US business by leaps and bounds. The recent disclosure of its Para IV ANDA filing for generic Ezetimibe (for which it is the only ANDA filer till date) is reflective of the strong product selection strategy of the company. Further, Glenmark has positioned itself as a truly innovative, research-driven company by the successful creation and unlocking of value of its IP assets.
Glenmark is upbeat about its growth prospects for the next two years, with its US and Latin American business being the major growth engines. As per the company's projections, it is planning to grow at a CAGR of 52% over FY2006-08E to $379 million, with the profits growing at a CAGR of over 137% over the same period to $115 million. The company has given earnings per share (EPS) guidance of Rs23.6 per share in FY2007E and Rs43.8 per share in FY2008E. The projected EPS however includes the anticipated milestone payments of $31 million in FY2007 and $69 million in FY2008. On excluding the impact of the uncertain milestone payments, the EPS would reduce by 50%.
MONSOON WATCH
Indian monsoon outlook gets a fillip
In our Special Market Outlook issue “Setting sights on 16000” dated January 02, 2007, we had mentioned about certain risks among which El Nino and its impact on the Indian monsoon were important ones. We had also mentioned that we needed to follow the development of the El Nino pattern. In this write-up we have revisited the latest developments surrounding the El Nino weather pattern
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What's your Risk Tolerance?
Some days back I got an email from a young man who recently won a good amount of money in the quiz game show Kaun Banega Crorepati. While the amount of money he won is not even close to the ultimate prize of the show, it is certainly enough for this teenager to finance as good an education that he wants for himself. He wanted to talk to me to get investment advice on how best to invest and preserve the neat little nest egg that Mr Shah Rukh Khan had presented him with.
The conversation I had with this boy reinforced my feeling that the cult of the expert - the firm belief in an outsider who knows everything - is distorting how people (specially intelligent people) approach investment. There's a strong idea around that there are some universally good investments, and that there are experts who know what these investments are, and all one has to do is to ask an expert and he or she will tell you and that is that.
This would be very convenient but it's unfortunately not true. The question whose answer we all need is not �Which is a good investment� but �Which is a good investment for me?� This seems like a trivial and self-evident point but is somehow only paid lip service to. There are no universally good investments. The most important part of that question is 'for me'.
But what is it about you that decides which investment is good and which is not? Conventionally, the big role is played by something called your risk tolerance and based on that, a financial planner can work out what kind of investments you need. This is a bogus concept. Most people's risk tolerance is actually zero, and the more inexperienced you are as an investor, the more likely that any kind of loss will make you run. The reason is that what the conventional financial planning measures is your financial risk tolerance whereas what actually matters is your psychological risk tolerance. You could be financially very stable and yet be completely unable to tolerate the idea of any investment losing you money.
The solution is to adopt what we called time-based asset allocation and continuous rebalancing. The idea is that you should try and divide up your investments into portfolios that are meant for different time-periods and put them in investments with different levels of risk based on how much time is it before you need the invested money. Moreover, this allocation must be rebalanced at least once a year. This way, you will end up booking profits and buying investments at low prices automatically.
One habit which leads most of us into panic is the habit of considering our investments on an individual basis rather than as a portfolio. There's a little point in investing some money in equity and some in debt if you keep expecting both to always make money independently. It's a portfolio, and the debt part is there to provide some stability when the equity is tanking.
By the way, while there may not be any universally good investments, the reverse is not true. There are universally bad investments. If you ask me for a list of investments that no one should ever make, I could come up with a fairly long one without much of a problem. I wonder if there's a lesson in that.
FII: + Rs 520 cr;MF–207 cr
Mkt Sources:
FII Gross purchases Rs 3716.40 Cr, Gross Sellers Rs 3196.20 Cr, Net Buyers Rs 520.20 Cr.
MF Gross Purchases Rs 483.90 Cr, Gross Sellers Rs 690.69 Cr, Net Sellers Rs 206.79 Cr.
Our View:
Overall FII numbers again would not seem very complete without the FNO picture.But they being positive should help in a positive start tomorrow.With FNO closing out of the way and March end on cards, expect markets to be bouyant tomorrow.
Market Close: Stability seen as US jitters overcome
FNO settlement kept market volatile in the morning but sudden buying in heavyweights fuelled the rally which helped Indices to close in positive. Overnight negatives in the US market had investors worried about the impact of a possible US slowdown. Asian Markets were in red. However a smart rally in Asia brought in some support. The FNO expiry had no big impact as it was already discounted. Sugar stocks traded up in early morning session but the news of Govt. banning new exports of sugar saw some levels of profit taking set in. This is the risk with policy driven stocks which are subject to the whims of illogical Government announcements. Software stocks found some relief as the Reserve Bank of India (RBI) intervened and the Rupee weakened against the Dollar. Global cues were supportive for the day as the Asian indices ended in Green while their European counter parts are trading in green.
Sensex closed up by 95 points at 12979.66. It was helped up by gains in TCS (1247,+4 percent), Hero Honda (679.7,+4 percent), HLL (204.55,+3 percent), L & T (1616.1,+3 percent) and ITC (146.75,+2 percent). Restricting the gains were HDFC Bk (933.05,-2 percent), Bajaj Auto (2420.7,-2 percent), Hindalco (128.3,-1 percent), Grasim (2054.6499,-1 percent) and Tata Motors (715.1,-1 percent). Tomorrow is the last day for the Fiscal year end FY07 and that should help markets close well.
After rolling back the prices earlier this month to help the government check inflation, the steel companies are gearing up to increase prices of hot rolled coils by Rs 500 to Rs 1,000 per tonne effective from 1st April 2007. The industry plans to raise the prices even though the landed import prices are higher than the domestic prices by Rs 2,500 to Rs 3,000 per tonne. The price hike will put the industry in confrontation with the government. Although there is no domestic scarcity yet, this possibility might change from 1st April 2007 with an expected US$ 30 to US$ 50 a tonne increase in the international price making exports more lucrative. The industry is expecting the prices to hit an all time high this year with major user countries like Russia turning into a net importer and with China curbing exports.
Man Industries bagged an order to manufacture and supply 257 miles of LSAW and HSAW line pipes coated externally and internally with anti-corrosive systems.The order size is expected to be to the tune of Rs. 1000 cr. With this new order, Man Industries order-book stands at Rs 2200 crore. The board of the company is scheduled to meet on 31 March 2007, to consider a scheme of demerger between the company and Man Aluminium. Stock ended up by 8% on this news.
Titan rallied before ending 2% higher after the company announced details regarding its optical venture of 'Optical Eye-wear' under the name and style of Titan Eye+. This business shall leverage the Titan brand to a new category i.e. Prescription eye-wear. Titan Eye + is the retail chain in the business of sales and service of prescription eye-wear offering allied optical services like eye check up, and product offerings of frames, lenses, contact lenses etc. The product offering shall also include its own brands in the fashion eye-wear category besides licensed brands. The company is already active in the branded Sun glasses market and the products are marketed under "Fast Track". The probability of success of their venture is high as the company already is an established brand which might be helpful in facing the competition from the unorganised sector of the industry.
Technically Speaking: Sensex traded between an intra day high of 13004 and low of 12832. Resistance was at 13047,13111 levels while the support was at 12875,12768 levels. Breadth was in favor of Declines as there were 1585 declines against 924 advances. Volume for the day stood at Rs. 3,673 cr. Sensex faces resistance at 13000. On the lower side support is at 12860. With the expiry behind us and an easy rollover, the markets are likely to be ranged between 13300 - 12300
Market ends upbeat
After opening flat, the market moved up with the Sensex gaining over 86 points in early trades on buying in heavyweight and information technology stocks. However selling at higher levels saw the index plunge deep into the red and touch the day's low of 12833, down 51 points. Stocks gyrated between positive and negative territories amid high volatility and the Sensex witnessed an intra-day swing of 171 points. The winding up of short positions in the derivatives contracts, as today was the last day of the derivatives expiry for the March series, helped the Sensex erase its losses and touch the day's high of 13004 towards the close. The Sensex ended the session with gains of 95 points at 12980. The Nifty ended the session at 3798, up 37 points.
The breadth of the market was positive. Of the 2,579 stocks traded on the BSE, 1,578 stocks advanced, 932 stocks declined and 69 stocks ended unchanged. Among the sectoral indices the BSE FMCG Index advanced 2.08% at 1712 followed by the BSE CD Index (up 1.45% at 3536) and the BSE CG Index (up 1.22% at 9000). However, the BSE Bankex, the BSE Auto Index and the BSE Metal Index closed in negative territory.
Select Sensex stocks notched up significant gains. TCS rose 3.83% at Rs1,247, Hero Honda advanced 3.62% at Rs680, HLL climbed 3.41% at Rs205, L&T surged 3.19% at Rs1,616, ITC scaled up 2.34% at Rs147, Gujarat Ambuja added 2.30% at Rs105, Ranbaxy jumped 2.08% at Rs345, Dr Reddy's advanced 1.66% at Rs705, Maruti Udyog gained 1.51% at Rs811 and NTPC was up 1.50% at Rs145. Among the laggards HDFC Bank tumbled 2.34% at Rs933, Bajaj Auto dropped 1.74% at Rs2,421 and Hindalco slipped 1.38% at Rs128. Grasim, Tata Motors, ICICI Bank, BHEL and Infosys closed with marginal losses.
Fast moving consumer goods stocks were in the limelight. Marico soared 5.12% at Rs62 and United Breweries jumped 2.08% at Rs270. Colgate, Glaxo, Procter & Gamble and Godrej Consumer Products ended with marginal gains.
Over 45.09 lakh Idea Cellular shares changed hands on the BSE followed by SAIL (19.15 lakh shares), Gujarat Ambuja (18.11 lakh shares), Zee Entertainment (18.09 lakh shares) and Exide Industries (15.51 lakh shares).
Value-wise Infosys registered a turnover of Rs128 crore on the BSE followed by HDFC Bank (Rs126 crore), Reliance Industries (Rs114 crore), Tata Motors (Rs63 crore) and TCS (Rs50 crore).
Market collects 95 points, led by FMCG, IT and capital goods
The benchmark index, which traded lacklustre throughout the day, suddenly found vigour and spurted over 100 points, to briefly cross the psychologically significant 13,000 mark. The Sensex attained an intra-day high of 13,004.40. Much of the spurt may have been on account of short covering in the derivatives segment, since the March 2007 contracts expired today.
Shares from FMCG, Capital goods and IT sectors received support, while those from banking, auto and metals were offloaded.
The 30-share BSE Sensex settled 95.32 points (0.74%) higher, at 12,979.66. Its low for the day was at 12,832.69.
The S&P CNX Nifty gained 37 points (0.98%), to 3,798.10.
Volatility was a significant feature with the markets dancing on F&O as well as global cues. The market is expected to trade range-bound for the next of couple of trading sessions. A global trigger may, however, instill some faith in investors.
The total market turnover stood at Rs 64,695.09 crore compared to Rs 56,773.14 crore on Wednesday. Of the total turnover on NSE, the cash segment accounted for Rs 10057.08 crore, and F&Os for Rs 50961.50 crore. The total turnover in BSE's cash segment amounted to Rs 3676.51 crore.
The market-breadth, which reflects the overall health of the market, was strong throughout the day. Buying spread over to small-cap as well as mid-cap stocks. Against 1,585 scrips advancing, only 924 declined on BSE. A total of 80 scrips also remained unchanged.
The BSE Mid-Cap Index advanced 22.59 points (0.43%), to 5,319.17, while the BSE Small-Cap Index rose 65.34 points (1.04%), to 6,377.79.
Among the 30-Sensex pack, 23 advanced while the rest declined.
The BSE IT Index gained 43.23 points (0.89%), at 4,875.08. IT stocks gained on renewed buying, after being under pressure for the last few sessions. Arresting a three-day strong rally, the rupee on Thursday fell about 36 paise, to 43.40/43 levels, in late-morning trade due to buying of dollars by banks, probably on behalf of the Reserve Bank of India (RBI).
In active trade at the Interbank Foreign Exchange (forex) market, the Indian unit resumed weak at 43.30/32 per dollar from Wednesday's close of 43.04/05 a dollar and later tumbled to a low of 43.40/43 per dollar during late-morning deals.
The rupee had climbed to its highest levels in more than seven years following a strong 69 paise surge in the last three sessions, due to heavy dollar sales by banks, which were facing acute liquidity crunch.
Oil companies also were believed to be making month-end dollar purchases, as global crude oil soared to around $64 a barrel.
IT major TCS was the top gainer, up 3.58% to Rs 1244, on a volume of 4.07 lakh shares.
Satyam Computer gained 1.62% to Rs 463. The company said on Wednesday, it had entered into a five-year contract with Applied Materials, whereby it will provide application development, maintenance, and support plus business transformation core technology services to Applied Materials through a managed services delivery model.
Satyam Computer informed of having created a dedicated development center for Applied Materials. The facility will be part of Satyam's Electronic City campus at Bangalore. As per media reports, the deal with Applied Materials is estimated at about $200 million.
Among other IT stocks, Infosys (up 0.13% to Rs 1995) and Wipro (up 1.58% to Rs 567) also edged up.
Mphasis (up 2.78%), HCL Tech (up 4.28%), NIIT (up 4.50%), and Rolta (up 2.32%) were the gainers from the mid-cap IT space.
Strong purchases happened for shares from the capital goods sector, in anticipation of robust results in the forthcoming quarters. As a result, the BSE Capital Goods Index was up 108.51 points (1.22%), at 9,000.14. Engineering & construction major L&T advanced 3.56% to Rs 1622, on a volume of 1.94 lakh shares. Thermax (up 2.10%), Aban Offshore (up 6.40%) and Suzlon Energy (up 4.94%) gained. Aban Offshore informed it had completed acquisition of residual 1.99% stake in the Norwegian subsidiary, Sinvest ASA.
Bike manufacturer Hero Honda rose 2.75% to Rs 674. It had surged to a high of Rs 685.90.
Gujarat Ambuja Cements (up 3.20% to Rs 105.50) and SBI (up 2.81% to Rs 1001.55) were the other gainers.
The BSE FMCG Index ended 34.97 points higher (2.08%), at 1,712.21. HLL (up 2.63% to Rs 203), ITC (up 1.95% to Rs 146.20) and Marico (up 4.20% to Rs 61.10) advanced.
Index heavyweight Reliance Industries (RIL) was up 0.38% to Rs 1353.80, on a volume of 8.31 lakh shares. Reports suggest that RIL was scouting for partners in Europe and the United States, to help speed up its domestic retail expansion. RIL will be interested in partnering with a US specialty retailer. The company aims to open about 2,000 fresh stores over five years.
According to another report, RIL is likely to join the race for the $1-billion Vizhinjam port on the Kerala coastline. The state government has decided to call fresh tenders from private players interested in developing the port. RIL was eyeing participation in a major port project on the west coast, which could rival Colombo's prominence, and hence the early interest in Vizhinjam International Seaport (VISL) that falls on the international shipping line.
ACC was up 0.18% to Rs 736.25. The cement pivotal will pump around Rs 4000 crore in three years, pushing its annual cement production capacity to 27.5 million tonnes. This will be an increase of over 38% in the company’s current capacity of 19.9 million tonnes.
The capital expenditure will be carried out between 2007 and 2009. The capital expenditure has been envisaged for plants in New Wadi, Karnataka, and Bargarh in Orissa. ACC has already completed the expansion and modernisation of its Lakheri plant, at Rajasthan, this year.
HDFC Bank was the top-loser, down 2.25% to Rs 934, on high volumes of 13.53 lakh shares, after a block deal of 12.37 lakh shares was struck in the counter at Rs 933 per share by 15:22 IST. It had dipped to a low of Rs 927.30. The Bankex shed 27.60 points (0.42%), to settle at 6,507.65.
Bajaj Auto (down 1.85% to Rs 2418) and Hindalco (down 1.85% to Rs 127.10) were the other losers. The BSE Metal Index had shed 28.29 points (0.34%), to 8,346.06.
Shares of real estate developers surged on reports that most of the derivative contracts for March 2007 had rolled over to the April 2007 series. Sobha Developers (up 8.70%), Akruti Nirman (up 5.95%), Indiabulls Real Estate (up 5.85%) and Parsvnath Developers (up 4.10%) surged, that too on high volumes.
A block deal for 21.95 lakh shares was struck in the Shreyas Shipping & Logistics counter at Rs 94 per share, after which the stock surged to a high of Rs 103.40. It was up 20% at Rs 103.40, on cumulative volumes of 24.55 lakh shares. The deal constituted almost 10% of the company’s equity. The equity base of the company is Rs 21.96 crore, with a face value of Rs 10 per share.
Idea Cellular topped the volume chart on BSE, and the scrip ended 5.54% higher at Rs 95.30. Around 45.09 lakh shares changed hands in the Idea Cellular counter today.
PSU steel maker SAIL was second in terms of volume. The scrip ended up 1.86% to Rs 112, on a decent volume of 19.15 lakh shares.
The third in volume terms was Gujarat Ambuja Cements. The scrip ended 2.30% up at Rs 104.60, as 18.11 lakh shares changed hands in the counter on BSE.
Titan Industries gained 2.62% to Rs 832.75, ahead of its plan to foray into the optical eye-wear business by launching a retail chain, Titan Eye+, in Bangalore. Titan Industries will offer products, including its own brands, in the fashion eye-wear category besides other licensed brands. Titan Eye+ is the retail chain in the business of sales and service of prescription eye-wear, offering allied optical services like eye check-up, as well as products such as spectacle frames, and contact lenses.
Man Industries India surged 7.06% to Rs 199, on announcing an order worth Rs 1000 crore. The company bagged an order to manufacture and supply 257 miles of LSAW and HSAW line pipes coated externally and internally with anti-corrosive systems. With this new order, Man Industries order-book stands at Rs 2200 crore. The board of the company is scheduled to meet on 31 March 2007, to consider a scheme of demerger between the company and Man Aluminium.
Glenmark Pharma advanced 2.97% to Rs 310. A suit was filed in the US to block the Indian drug company from marketing a generic version of a cholesterol drug. Schering Corporation and MSP Singapore Company have together filed this suit against Glenmark Pharma to disallow it from marketing a copy-cat version of Ezetimibe.
Paradyne Infotech gained 5.40% to Rs 92.70, after the company said on Wednesday its board had approved the acquisition of US-based Links Group International in a $4.75 million all-cash deal. The US acquisition will be executed through Paradyne Infotech's wholly-owned subsidiary in the US, Dyne Techservices, the company informed. The funding would be through a mix of debt and internal accruals, Paradyne Infotech added. Links Group's annual revenue was above $7 million, while gross profit was above $1.4 million.
All Asian markets were trading with gains. European markets with the exception of Spain’s Madrid General, had also advanced. The Hang Seng Index gained 1.37%, while the Nikkei 225 Index rose 0.05%.
The Securities and Exchange Board of India (Sebi) decided to allow short selling by institutional investors only in such stocks which are also traded in the derivatives segment. A clarification was made by M Damodaran, Chairman, Sebi, at a press conference in Mumbai on Wednesday (28 March). At present, there are 159 stocks, whose derivatives are available.
Damodaran added that institutional investors will be allowed to sell short only in these 159 stocks. According to the Sebi chief, short selling by institutional investors cannot be expanded to other stocks as the decision was based on experience gained in the matter. Even the list of 159 stocks was not small, and more stocks could be covered in due course, Damodaran informed.
On the issue of IPO grading, Damodaran said the scope of grading wouldl be expanded gradually to other offerings by companies in the form of a rights issue and follow-on public offerings (FPOs). Later, companies will also be graded on the basis of previous issues made by them. However, with the introduction of grading, the merchant banker will not be shorn off his responsibility. Merchant bankers will continue to be responsible for all disclosures made in the prospectus and issue related processes.
On the issue of imposing the circuit filters on the first day of listing, Damodaran said, the Surveillance Committee comprising the representatives of the exchange and Sebi, was seized of the matter and some concrete decisions would be taken soon. However, on the issue of imposing ciruit filters on the day of re-listing of securities, Damodaran pointed to an already existing provision for imposing 20% circuit filter.
The trend in the global markets has been impacting domestic bourses in the past few weeks. Most Asian markets were in the green today, which may provide support to the domestic bourses. The Sensex’s 240-point fall on Wednesday (28 March 2007), was largely due to weakness in global markets. European and Asian stocks had slipped on Wednesday and the yen had risen against higher-yielding currencies as Iran worries prompted investors to ditch risky carry trade' positions based on cheap borrowing in the Japanese currency.
Fresh risk aversion was sparked by tensions over Iran. US crude jumped $5 to a six-month high of more than $68 a barrel late on Tuesday, on rumours of a military clash between Iran and the US navy. Oil prices relented on Wednesday, after Washington dismissed the talk, but stayed up by nearly $1 for the day.
US stocks fell on Wednesday, as escalating tensions with Iran sparked a fresh wave of risk-aversion. Investor unease grew further after Federal Reserve Chairman Ben Bernanke told the US Congress that economic uncertainties had increased and warned that inflation remained a concern.
The Dow Jones industrial average closed down 96.93 points, or 0.78%, at 12,300.36. The Standard & Poor's 500 Index closed down 11.38 points, or 0.80%, at 1,417.23. The Nasdaq Composite Index closed down 20.33, or 0.83%, at 2,417.10.
A report on US orders for big-ticket items such as computers and appliances on Wednesday failed to live up to forecasts, further underscoring weakness in the world's largest economy.
Oil prices dipped below $64 a barrel today amid heightened tension in the Middle East as Iran's detention of 15 British navy personnel approached the one-week mark. Iran, the world's fourth-largest oil producer, is located along the Strait of Hormuz, through which about two-fifths of the world's oil is transported. Traders worry that oil supplies could be disrupted if unrest were to escalate in that zone.
Light, sweet crude for May delivery fell 15 cents to $63.93 a barrel in electronic trading on the New York Mercantile Exchange. The contract setttled at $64.08 a barrel on Wednesday, its highest closing since September 2006. May Brent crude on London's ICE Futures exchange fell 3 cents to $65.75 a barrel.
Oil spiked briefly above $68 a barrel in after-hours trading late Tuesday on rumours that Iran had fired on a US ship in the Persian Gulf, which was denied by the US military.
FIIs were net equity buyers to the tune of Rs 520 crore on 28 March 2007.
The next major trigger for the market is Q4 March 2007 results. Concern that the US economy is cooling faster than previously forecast, along with the recent surge of the rupee versus the dollar has ignited market talk that IT bellwether Infosys’ FY 2008 (year ending 31 March 2008) may turn out conservative. Infosys unveils its full year guidance at the time of announcing fourth quarter and annual results in April.
Edelweiss - Daily Market Outlook 29th March, 07
Market Snapshot
Yesterday, the indices were severely pounded mirroring weak global markets and unwinding taking place in the derivatives segment. Unabated selling, mainly in technology stocks, saw the index languish in negative zone for most part of the trading session today. The Sensex dropped to a low of 12,861 before closing with a loss of 240 points at 12,884. Nifty settled with a loss of 58 points to close at 3,761.
The NSE and BSE cash volumes were higher compared to the previous day at INR 83 bn and INR 41 bn respectively. The F&O volumes were a touch higher at INR 441 bn.
Sentiment Indicators
The Implied Volatility (IV) across Nifty strikes has increased to 29-30% levels. The WPCR of Nifty Options increased to 1.07 compared to the previous day while the 5 day average is 1.01.
Outlook
In line with global cues, the markets are expected to open slightly negative and advise a cautious approach as the volatility continues in the market.
The market wide rollovers increased yesterday to go upto 56% in line with previous expiries. Nifty rollovers also witnessed continued rolls to go upto 57% as the March contract expires today. The roll cost also picked up to 61 bps which is slightly lower than average of previous expiries.
We recommend the short rollers to be aggressive at current Nifty roll levels of -5 to -6 as we expect it to further contract.
RIL, ITC, ACC, Guj Amb, Parsavanth, Arvind Mills, Orchid Chemicals are good short VWAP candidates. One can take short positions in the stock futures and hedge against the Nifty. We will be coming out with a list of VWAP counters throughout the trading session.
As indicated the south-bound journey in the Nifty began with the Index shedding almost 59 points. Further weakness still exists in the market with the next immediate support at 3723 followed by 3707. On the upper side the next important resistance is 3793 and 3805
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Anand Rathi - Daily Strategist
The NIFTY futures saw a increase in OI 1.29% with prices closing down as expected indicating that lot of shorts positions were built and blood was seen on the street. The discount in nifty futures increased indicating that bears aggressively cornered the bulls and got them liquidated .We feel that till the market sustains above 3750 levels we may not see aggressive short covering and fresh money coming in the market.
The FIIs were huge buyers in futures to the tune of 291 crores .The PCR is in a range of 00.93 indicating the trend in the market. The volatility has remained in the range of 32.95 levels indicating the negative feel in the market.
Among the Big guns, ONGC saw huge loss of OI with prices going up indicating that fresh short covering coming in the counter along with fresh genuine buying while RELIANCE continued the loss OI and there was a loss in the price as it continued its negative trend since last three sessions.
On the TECH front, INFOSYSTCH,SATYAM, TCS & WIPRO saw decrease in prices showing weakness in the markets, and forced long positions to sell with some fresh shorts formed there.
On the other hand the BANKING counters saw open interest gaining with loss in value. Also we saw the genuine selling coming in P.S.U banks like S.B.I & P.N.B and across the board prices loosing value in the sector .The rest like ICICI BANK & HDFC BANK saw short positions being built and fresh bull liquidations.
In the METALS across the board selling coupled with short positions were formed in all counters forcing the bulls to run for cover with new genuine selling happening there in the sector.
Considering the market data, it suggests the most awaited trend has happened and finally set the decorum in the next week for the new settlement and the new financial year , for the same it is advisable to traders to have strict stop losses.
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Bias may remain negative
After falling almost 424 points in the last three trading sessions, the south bound journey may continue further on weak international markets, higher global crude oil prices and strengthening rupee against dollar. However, today being the last day of derivatives expiry for the March series, investors winding up their position may help the sentiment turn positive. Among the local indices the Nifty could test 3725 and 3680 on the downside while on the upper side it may move up to 3900. The Sensex has a likely support at 12800 and may face resistance at 13400.
U.S. indices ended lower on Wednesday after Federal Reserve Chairman Ben Bernanke said he was uncomfortable with inflation and uncertain about the economy. While the Dow Jones dropped 97 points at 12300, the Nasdaq fell by 20 points to close at 2417.
Barring few select ADRs, most of the floats had a weak outing. Tata Motors tumbled by 3% while Infosys, Wipro, HDFC Bank, Satyam and VSNL slumped over 1-2% each. Among the select gainers Dr Reddy's gained over 1% while Rdiff, Patni Computers and MTNL ended with steady gains.
Crude oil prices edged higher, with the Nymex light crude oil for May series rising by $1.15 to close at $64.08 a barrel. In the commodity segment, the Comex gold for June delivery jumped $4.10 to settle at $672.90 a troy ounce.
Intra-day Stock Ideas
NIFTY (3761) SUP 3722 RES 3791
BUY RANBAXY (338.9)
SL 334 T 346, 348
BUY GESHIP (201.2)
SL 197 T 209, 211
@ 301 SL 305 T 289, 287
SELL HINDPETRO (254)
@ 257 SL 261 T 247, 245
SELL NAGARCONST (158.8)
@161 SL165 T 152, 150
Street Talk
Abbott India will announce its results today.
Ranbaxy's Board will consider Audited Accounts for the year ended December 31, 2006 and declare 2nd interim dividend.
Bharat Earth Movers Ltd. (BEML) Board will meet to consider the Red Herring Prospectus for the proposed Public Issue of 49 lakh Equity Shares of Rs10 each at a premium to be decided under Book building process as per SEBI guidelines.
Sterling Biotech's Board will consider Audited Accounts for the year ended December 31, 2006 and also consider the declaration of a dividend.
Megasoft will also consider Audited Financial Results for the financial year ended December 31, 2006.
ANG Auto's Board will consider merger of ANG Auto Tech, a subsidiary with the company.
Sulzer India's Board will consider audited financial results and dividend, if any, for the quarter/ year ended on December 31, 2006.
Market Watch & Insider Trades
Insider Trades:
Asian Paints Limited: Shri Ashwin Choksi, Chairman has purchased from open market 3500 equity shares of Asian Paints Limited on 26th march, 2007.
Tube Investments of India Ltd: Murugappa Group (Promoters) has purchased from open market 1250000 equity shares of Tube Investments of India Ltd on 15th March, 2007
Market Volumes:
The turnover on NSE was up by 19% to Rs83.63bn. The BSE Technology index was the major loser and lost 2.91%. BSE Auto index (down 2.63%), BSE Bank index (down 2.27%), BSE Consumer Durable index (down 2.23%) and BSE Capital Good index (down 1.62%) were among the other major losers.
Volume Toppers:
IFCI, SAIL, Gujarat Ambuja, Idea, R Com, Balrampur Chini, Satyam Computer, HLL, Bajaj Hindusthan, TTML, India Cement, Indiabulls, Infosys, Tata Motors, Tata Steel, Gujarat NRE and JP Hydro.
Lower Circuit:
GMR Industries, Harrison Malyalam, Kesoram Industries, Nahar Exports, Nesco Ltd, McLeod Russel, Ganesh Housing, Garware Offshore, HOV Services, KEI Industries, Atlanta and Vakran Software.
Delivery Delight:
Apollo Hospitals, ACC, Aurobindo Pharma, BHEL, Dr Reddys Laboratories, Jet Airways, Balrampur Chini Mills, Dwarikesh Sugar, Gujarat NRE Coke, Matrix Laboratories, Ranbaxy, ONGC, Tata Power, Tulip, Sakthi Sugars, Sesa Goa, Strides Arcolab, Uttam Sugar and Wockhardt.
Brokers Recommendations:
Sun Pharma – Accumulate from Edelweiss
Hotel Leela – Outperform from Macquire Research
Long Term investment:
Dr Reddy’s Laboratories
Major News Headlines:
FM sees growth staying 9% or above
Satyam signs Multi year deal with Applied Materials
Wockhardt gets USFDA nod for anti-inflammatory injection
Sun TV to consider stock split on 5th April
Polaris to pay Rs1.25 per mid-year dividend
Sterlite Optical gets order from PGCIL
Jagran Prakashan partners Yahoo India for Hindi website
Glenmark confirms ANDA filing with a Paragraph IV Certification for Zetia Tablets
ABG Shipyard secures $13.5mn Tug Order
Strides Arcolab gets ANDA approval from USFDA for Efavirenz tablets
STRATEGY INPUTS FOR THE DAY
Short-covering, a hope for bruised bulls
A minute's success pays the failure of years.
That’s what the bulls will pray for as they are into a year which has not been promising so far. After yesterday's selloff, the bulls may have harboured some hopes of a rebound. But, they are unlikely to get much of a relief this morning as most global indicators are pointing towards one direction i.e. down. On the brighter side, FIIs pumped in Rs2.9bn (provisional) in the cash segment yesterday on a day when the Sensex tumbled 239 points. In the F&O segment too, they were net buyers to the tune of Rs2.92bn. On Monday, foreign funds were net buyers of Rs805mn in the cash segment. Mutual Funds were net sellers at Rs2.95bn on the same day.
So, what we have is a mixed set of cues. After a sharp drop, the market will surely look for a bounce. That may materialize only in case of short covering in the F&O segment. Given the fact there are more uncertainties around than optimism it will take a big effort on the part of the bulls to sustain any kind of rally going forward. IT shares may remain under pressure due to the strength in the rupee versus the dollar. Also, the volatility could be a bit higher than normal today on account of derivative’s settlement.
Global worries could unsettle the local bulls yet again. Oil has climbed to $64 per barrel on the back of rising tension between Iran and the UK over the detention of British sailors by Tehran last week. Analysts warn that any escalation in the situation would have a significant impact on oil prices. So, keep an eye on oil.
Federal Reserve Chairman Ben S Bernanke says though central bank policy makers are focused on containing inflation, risks to the US economy have increased in recent times. "Uncertainties have risen, and therefore a little more flexibility might be desirable," he told the Joint Economic Committee of Congress in Washington.
In foreign currency markets, the Japanese yen touched a nine-day high against the dollar as a slowing US economy and tension between Iran and the UK led investors to cut back on the so-called carry trades.
US stock benchmarks extended this week's losses after Fed chief Bernanke said inflation remains his main concern amid growing evidence that the world's largest economy is slowing.
Wal-Mart, General Motors and Boeing pushed the Dow Jones Industrial Average to its third straight decline as crude oil jumped to a six-month high. Financial shares, led by Goldman Sachs were the biggest drag on the Standard & Poor's 500 Index, which erased its gain for the year.
In economic reports, weaker-than-forecast durable goods data added to the data earlier this week that the housing market continues to deteriorate and consumer confidence is waning.
The Dow lost 96.93 to 12,300.36, the S&P 500 slid 11.38 to 1417.23 and the Nasdaq Composite Index shed 20.33 to 2417.10. All three benchmarks dropped about 0.8% each.
Oil prices pared some gains after the release of the weekly oil inventories report, but still settled above $64 a barrel on the New York Mercantile Exchange. Prices have been on the rise amid worries about the conflict with Iran, the No. 4 oil exporter. The front-month contract was 8 cents lower at $64 a barrel in extended trading in Asia.
COMEX gold for April delivery rose $4.10 to settle at $672.90 an ounce. Treasury prices slipped, raising the yield on the 10-year note to about 4.61% from 4.59% late on Tuesday. In currency trading, the dollar fell versus the yen and inched higher versus the euro.
European shares traded lower. The pan-European Dow Jones Stoxx 600 index declined 0.74% to 369.70. The German DAX Xetra 30 slipped 0.6% to 6,816.89 and the French CAC-40 benchmark lost 0.62% to 5,552.69. The UK's FTSE held up better, down 0.4% at 6,267.20, as the benchmark's weighting of major oil companies served to limit downside.
Stocks in Brazil and Mexico fell. In Sao Paulo, the Bovespa stocks index lost 722 points, or 1.6%, to close at 44,484.10. In Mexico City, the IPC lost 26 points, or 0.1%, to 28,098.28, though stocks bounced off their lowest levels of the session.
Asian stocks were mixed this morning. Markets in Hong Kong, China and Korea were trading higher while those in Tokyo and Singapore declined. The Morgan Stanley Capital International Asia-Pacific Index slipped 0.7 percent to 143.97 at 10:58 a.m. in Tokyo.
The Nikkei was down 158 points to 17,096 while the Hang Seng in Hong Kong gained 75 points to 19,629. The Kospi in Seoul added 3 points to 1443 while the Straits Times in Singapore was nearly flat at 3203.
HOW MARKET FARED
Yet another down day
Weak global cues and rise in crude oil prices pushed the key indices in red at open, from there on the markets fell continuously as selling was witnessed all over the bourses. The Techies led the downfall as rupee strengthened against the US Dollar dragging the IT stocks lower. Others like Auto, Bank, Capital Good and Telecom stocks followed suit dragging the benchmark Sensex to hit a low of 12861.18.
However, Sugar stocks out performed for second straight day as government may announce export rebates for sugar producers. Oil exploration major ONGC also stood firm as crude oil rose sharply. Sesa Goa was also in the limelight as the deadline for submitting bids for promoters stake ends today, the scrip was up 3% finally closing at Rs1798.
Finally, the 30-share benchmark Sensex declined 239 points to close at 12884. NSE Nifty fell 58 points to close at 3761.
Polaris slipped 1.5% to Rs177. The company declared that they would pay Rs1.25 per mid-year dividend. The scrip touched an intra-day high of Rs182 and a low of Rs175 and recorded volumes of over 7,00,000 shares on NSE.
ONGC surged over 1.7% to Rs864 after crude oil prices surged above US$64 per barrel. The scrip touched an intra-day high of Rs872 and a low of Rs825 and recorded volumes of over 19,00,000 shares on NSE.
Sterlite Optical was flat at Rs182. The Company received Power Conductors order from Power Grid Corporation of India. The scrip touched an intra-day high of Rs187 and a low of Rs177 and recorded volumes of over 1,00,000 shares on NSE.
IOC declined by 3.2% to Rs404. The company announced its entry into the refinery and petrochemicals business in Turkey with an investment of around Rs430bn. The scrip touched an intra-day high of Rs413 and a low of Rs401 and recorded volumes of over 71,000 shares on NSE.
Sugar stocks rallied for second straight day as government may announce export rebates for sugar producers. Sakhti Sugar rallied by over 15% to Rs78, Bajaj Hindusthan jumped by over 4.5% to Rs183, Renuka Sugar surged over 6% to Rs455 and Balrampur Chini added 2.6% to Rs65.
Pharma stocks also ended with smart gains. Ranbaxy surged by over 3.5% to Rs338, Dr Reddy’s Lab was up 1.5% to Rs692 and Wockhardt surged by over 6.5% to Rs397 after the company received US FDA nod for anti-inflammatory injection.
Telecom stocks were on the receiving end as profit booking dragged them lower. Reliance Communication lost 1.5% to Rs419, Bharti Airtel was down 1.7% to Rs757, VSNL declined 1.8% to Rs395 and MTNL edged lower 0.3% to Rs148.
Profit booking dragged the Banking stocks lower. Heavy weight SBI declined 4% to Rs973, ICICI Bank dropped 2% to Rs875 and HDFC Bank was down 1.6% to Rs958. Among the Mid-Cap stocks Corp Bank, Canara Bank and PNB were the major losers.
Sesa Goa gained 3% yesterday in a weak market amid grapevine that the final bid for Mitsui & Co.'s 51% stake in the company could be at a significant premium to the market price. The scrip closed at Rs1,796 yesterday with volume of over 10 lakh shares and 20% marked for delivery.
Investsmart - Morning Call
Market Grape Wine :
In House :
Nifty at a support of 3746 & 3722 levels with resistance at 3804 & 3838
levels .
Sell : RelCap below 635
Out House :
Sensex at a support of 12786 & 12702 levels with resistance at 13013 &
13113 levels .
Buy : RIL & RelCap
Buy : Bharti & IciciBank
Buy : Wipro
Buy : Sail & JSW
Buy : PRAJ
Buy : Skumar & Aban
Buy : SesaGoa & IFCI
Dark Horse : Bharti , IciciBank , Skumar , Aban , RIL , Wipro & ABB
Caution may prevail
Caution may prevail on the bourses ahead of expiry of March 2007 derivatives contracts today. Short positions continued to be carried forward to the April 2007 series, ahead of the expiry of March 2007 contracts on Thursday. As per estimates, the market-wide rollover from March 2007 contracts to April 2007 contracts so far (at end of Wednesday 28 March) has been pegged at 46 to 48%, similar to the trend seen in the previous expiries.
Trend in global markets is having a strong impact on domestic bourses since the past few weeks. Most Asian markets were in the green on Thursday and this may provide support to domestic bourses today. Sensex’s 240 points fall on Wednesday 28 March 2007 was largely due to weakness in global markets. European and Asian stocks had slipped on Wednesday and the yen had risen against higher-yielding currencies as Iran nerves prompted investors to ditch risky carry trade' positions based on cheap borrowing in the Japanese currency.
The fresh risk aversion was spurred by tensions over Iran. US crude jumped $5 to a six-month high of more than $68 a barrel late on Tuesday, on rumours of a military clash between Iran and the US navy. Oil prices relented on Wednesday after Washington dismissed the talk, but stayed up by nearly $1 for the day.
On Thursday 29 March, key benchmark indices in Hong Kong, China, South Korea, Singapore and Taiwan were up by between 0.1% to 2.2%. But barring China’s Shanghai Composite index which was up 2.2%, gains were muted at between 0.1% to 0.3% in key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan. Japan’s Nikkei 225 average was down nearly 1%.
US stocks fell on Wednesday as escalating tensions with Iran sparked a fresh wave of risk-aversion. Investor unease grew further after Federal Reserve Chairman Ben Bernanke told Congress that US economic uncertainties had increased but warned that inflation remained a concern. The Dow Jones industrial average closed down 96.93 points, or 0.78 percent, at 12,300.36. The Standard & Poor's 500 Index closed down 11.38 points, or 0.80 percent, at 1,417.23. The Nasdaq Composite Index closed down 20.33, or 0.83 percent, at 2,417.10. A report on US orders for big ticket items such as computers and appliances on Wednesday failed to live up to economists' forecasts, further underscoring weakness in the world's largest economy.
Back home, FIIs have remained buyers of Indian equities over the past few days notwithstanding volatility on the bourses. FIIs were net buyers to the tune of Rs 80.50 crore on Monday (26 March 2007). The inflow on Monday was however much muted coming in after a recent surge, when FIIs had pumped in a net Rs 713.10 crore on 22 March 2007, followed by an inflow of Rs 678.50 crore on 23 March 2007. As per provisional data, FIIs were net buyers to the tune of Rs 290 crore on Wednesday 28 March, the day when Sensex had lost 240 points.
The next major trigger for the market is Q4 March 2007 results. Growing concerns that the US economy is cooling faster than previously forecast alongwith the recent surge of rupee versus the dollar has ignited market talks that IT bellwether Infosys’ FY 2008 (year ending 31 March 2008) may be conservative. Infosys unveils its full year guidance at the time of announcing fourth quarter and annual results in April.
Board Meetings - March 31 2007
| Mar 31 2007 | Bata India Ltd | AccountsBata India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 30, 2007 has decided that the next Annual General Meeting of the Company will be held on June 27, 2007, inter-alia, to receive, consider and adopt the Profit & Loss Account for the year ended December 31, 2006, the Balance Sheet and the Auditor's Report as on that date.The dividend, if any, to be recommended by the Board will be considered at the next Board Meeting to be held on March 31, 2007, which will approve the Audited Financial Results of the Company for the year ended December 31, 2006.(As Per BSE Announcement Website Dated on 07/03/2007)Bata India Ltd has informed BSE that the meeting of the Board of Directors of the Company which is scheduled to be held on March 31, 2007 has been postponed till the end of April, 2007.(As Per BSE Announcement Website Dated on 19/03/2007) |
| Mar 31 2007 | Clutch Auto Ltd | Clutch Auto Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, to consider the allotment of equity shares on conversion of warrants on preferential basis. |
| Mar 31 2007 | Diana Tea Company Ltd | Accounts |
| Mar 31 2007 | Ennore Coke Ltd | Ennore Coke Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, to discuss and decide review of Business Transfer Agreement with Ennore Power and Coke Pvt Ltd. |
| Mar 31 2007 | Epic Energy Ltd | EPIC Energy Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, to consider the allotment of shares arising out of the exercise of upto 30,00,000 warrants issued on preferential basis to various warrant holders in the month of October, 2005. |
| Mar 31 2007 | Intense Technologies Ltd | Intense Technologies Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, inter alia, to consider and to approve the allotment of Equity Shares to the employees on exercise of options under ESOP Scheme 2005. |
| Mar 31 2007 | Jai Mata Glass Ltd | Jai Mata Glass Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 24, 2007, inter alia, to consider the following:1. For allotting 3500000 equity shares of Re 1/- each to existing promoters on preferential basis for redemption of 350000 Cumulative Optionally Convertible Redeemable Preference Shares (COCRPS) of Rs 100/- issued to Industrial Development Bank of India Ltd., in accordance with the Order of Hon'ble Board for Industrial and Financial Reconstruction dated April 10, 2006.2. For redemption of 350000 Cumulative Optionally Convertible Redeemable Preference Shares (COCRPS) of Rs 100/- each issued to Industrial Development Bank of India Ltd., in accordance with the Order of Hon'ble Board for Industrial and Financial Reconstruction dated April 10, 2006.Jai Mata Glass Ltd has informed BSE that the meeting of the Board of Directors of the Company which was scheduled to be held on March 24, 2007, inter alia, to consider the following:1. F |
| Mar 31 2007 | Kemrock Industries & Exports Ltd | Kemrock Industries & Exports Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, inter alia, to consider and approve the conversion of 4,25,000 Warrants (comprised in Part-A of the Warrants) into Equity Share and allotment thereof. The said Warrants were issued to Shri. Vinod Patel, a resident of Fiji, on a preferential basis on February 22, 2007 pursuant to an approval of the Shareholders of the Company at their meeting held on August 26, 2006. |
| Mar 31 2007 | Man Industries (India) Ltd | Man Industries India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, inter alia, to transact the following:1. To make note of the order of the Hon'ble High court of Mumbai passed on March 09, 2007 in the matter of the Scheme of demerger between the Company and Man Aluminium Ltd.2. To fix the record date for the shareholders who will be entitled to receive shares of Man Aluminium Ltd.Note:(i) As per Scheme Sanctioned by the Hon'ble High Court the resulting company will issue and allot 33,30,304 equity shares of Rs 10 each fully paid up (the New Equity Shares).(ii) The New Equity Shares will be issued to the registered equity shareholders whose name is recorded in the register of members of the Demerged Company on the Record date and to other nominees of the Demerged Company in the ratio of 1:8, i.e. (one (1) equity share of Resulting Company for every (8) equity shares of the Demerged Company) (the "Shares Entitilement Ratio") |
| Mar 31 2007 | Mukesh Steels Ltd | Mukesh Steels Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, to reconsider and review the decisions taken by the Board in its meeting held on March 14, 2007 relating to Preferential issue and Right issue. |
| Mar 31 2007 | Nagreeka Exports Ltd | Nagreeka Exports Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, to allot new shares of Rs 5/- to the existing shareholders of the Company (as per the Scheme of Demerger approved by the Honourable Calcutta High Court).Further the Company has informed that the shareholders of the Company will also be entitled to the equity shares of Rs 5/- each of Nagreeka Capital & Infrastructure Ltd as on the record date March 30, 2007 (as per the Scheme of Demerger approved by the Honourable Calcutta High Court). |
| Mar 31 2007 | Neelkanth Rockminerals Ltd | Neelkanth Rockminerals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, inter alia, to consider the following business:1. To consider diversification of business of undertake textile business.2. To amend the objects clause of the Memorandum of Association of the Company to enable the Company to undertake textile business.3. To consider increase in borrowing powers of the Board of Directors.4. To consider increase in investment powers of the Board of Directors. |
| Mar 31 2007 | Pantaloon Industries Ltd | Accounts |
| Mar 31 2007 | Regency Ceramics Ltd | Regency Ceramics Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, inter-alia, to consider, the recommendations of the 'Merger Committee' (constituted in the last Board meeting held on March 06, 2007 comprising of independent directors), with respect to merger of M/s. Regma Ceramics Ltd with the Company. |
| Mar 31 2007 | Spice Ltd | Accounts (Nine Months.) |
| Mar 31 2007 | Sterling Holiday Resorts (India) Ltd | Sterling Holiday Resorts India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, for allotment of shares under Employees Stock Option Scheme. |
| Mar 31 2007 | Suashish Diamonds Ltd | Accounts |
| Mar 31 2007 | Valuemart Info Technologies Ltd | Valuemart Info Technologies Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, inter alia, to consider issue of Shares / Warrants on preferential basis to Strategic Investors / Promoters. |
| Mar 31 2007 | Vijay Shanthi Builders Ltd | Vijay Shanthi Builders Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, inter alia, to consider the following:1. Preferential issue of 45,00,000 Warrants to promoter group, with option to apply for equity shares at a future date, not exceeding 18 months from the date of Issue, at a price to be determined by the Board in accordance with SEBI Guidelines in this regard.2. To Increase Borrowing powers of the Company from Rs 100 Cores presently to Rs 200 Crores.3. To Convene EGM of the Members of the Company seeking their approval as requires under Companies Act, 1956 for the above. |
| Mar 31 2007 | Yash Papers Ltd | Yash Papers Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 31, 2007, inter alia, to consider, approve and take on record the Audited Financial Results of the Company for the quarter and year ended on December 31, 2006 alongwith recommendation of dividend and allotment of shares against the preferential warrant. |
Board Meetings - March 30 2007
| Mar 30 2007 | Ahluwalia Contracts (India) Ltd | Ahluwalia Contracts India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2007 to consider and approve the Reappointment of Managing Director, Dy. Managing Director and Whole Time Directors and Revision of the Remuneration. |
| Mar 30 2007 | CRISIL Ltd | CRISIL Ltd has informed BSE that a meeting of the Allotment Committee of Directors of the Company will be held on March 30, 2007, to allot Equity shares of the Company against Stock Options granted to employees and Directors of the Company and its subsidiaries under the Employees Stock Option Scheme of the Company. |
| Mar 30 2007 | Global Boards Ltd | Global Boards Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2007, inter alia, to consider the following:1. To consider the issue & listing of the reduced share capital.2. To Issue fresh equity shares pursuant to BIFR order.3. To adopt the unaudited quarterly results for the quarter ended June, September & December, 2006. |
| Mar 30 2007 | Marg Constructions Ltd | Marg Constructions Ltd has informed BSE that a meeting of the Board of the Directors of the Company will be held on March 30, 2007, inter alia to conduct the following businesses:1. To consider declaration of Interim Dividend for the year ending March 31, 2007.2. To allot shares upon conversion of warrants.3. To appoint additional directors on the Board.4. To review ongoing projects of the Company. |
| Mar 30 2007 | Mayur Uniquoters Ltd | General |
| Mar 30 2007 | Mediaone Global Entertainment Ltd | Mediaone Global Entertainment Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2007, to consider an allotment of preferential issue of equity shares to M/s. Shreepathee Investments P Ltd. |
| Mar 30 2007 | MRO-TEK Ltd | MRO TEK Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2007, to consider a maximum of 3,11,400 Equity Share of Rs 5 each to be issued under ESOP Scheme.MRO TEK Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2007, inter alia, to consider, buy - back of Company's equity shares, at prevailing market rates, through stock exchange mechanism.(As Per BSE Announcement Website Dated on 20/03/2007) |
| Mar 30 2007 | Murli Industries Ltd | Murli Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2007, to consider the following items:1. To take note on the decision taken in the Committee meeting during last quarter.2. To consider any other item on the request of any member of the board.Murli Industries Ltd has informed BSE that the meeting of the Board of Directors of the Company which was scheduled to be held on March 30, 2007 to transact business mentioned in the agenda is postponed due to the majority of the Whole time Director may not be able to attend the meeting for certain unavoidable reasons hence with the approval of all the directors the meeting is postponed.(As Per BSE Announcement Website Dated on 28/03/2007) |
| Mar 30 2007 | Pioneer Embroideries Ltd | Pioneer Embroideries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2007, inter alia, to consider the following:1. Allotment of 13,33,333 Equity Shares of Rs 10/- each to the Shareholders of Royal Embroideries Pvt Ltd, pursuant to the Scheme of Amalgamation of Royal Embroideries Pvt Ltd and Grant Apparel Pvt Ltd with the Company as approved by the respective Hon'ble High Court at Bombay and Karnataka.2. Allotment of 1,70,000 Equity Shares of Rs 10/- each to Pioneer E-Com Fashions Ltd arising out of conversion of Share Warrants. |
| Mar 30 2007 | Radha Madhav Corporation Ltd | Radha Madhav Corporation Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2007 for allotment of Shares in exchange of Warrants allotted to the Promoters on May 26, 2006. |
| Mar 30 2007 | Royale Manor Hotels & Industries Ltd | General |
| Mar 30 2007 | Siddhartha Tubes Ltd | Quarterly Results |
| Mar 30 2007 | Signet Overseas Ltd | Signet Overseas Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2007, inter alia, to consider and declare the interim dividend for the financial year 2006-2007. |
| Mar 30 2007 | SpiceJet Ltd | Quarterly Results |
| Mar 30 2007 | Sri Malini Spinning Mills Ltd | Sri Malini Spinning Mills Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 30, 2007, inter alia, to consider, the Internal Operations, Control and Regulations of the Company. |
US Market plunges after hawkish statements from Federal Reserve
US Market witnesses biggest two day loss in two weeks as Federal Reserve Chairman speaks
Did the Fed fool the market previously? Today, Fed Chairman Ben Bernanke’s hawkish comments seem to indicate that. Also, a weaker-than-expected durable goods report dampened hopes that business spending would help stave off a housing-led economic slowdown. That along with Ben Bernanke's stance that Fed policy is still oriented toward inflation control, weighed on market sentiment for the entire day. Higher crude prices amid rumours of a military altercation with Iran in the Persian Gulf just worsened the situation further. Dow, was at a time, trading 140 points lower but recovered a bit before going to close. The Dow's decline was its third-straight this week.
29 out of 30 stocks closed lower for the day. For the day (28 March, Tuesday) the Dow Jones Industrial Average closed lower by 96.33 points at 12300.36, Nasdaq lower by 20.33 points at 2417.1 and S&P 500 lower by 11.39 points at 1417.22. Altria was the sole major Dow winner. It rose 1.3% after Goldman Sachs added the stock to its conviction buy list. Boeing, Wal-Mart, General Motors and United Tech were the major Dow laggards.
Durable Orders report starts day in a bad tone
The stock market started the day on a negative note with the early slide driven by an increase in oil prices. Separately, the durable orders report for February was on the weak side with non-defense capital goods orders, ex-transportation (a proxy for business investment) declining 1.2% after a 7.4% decline in January. The financial and consumer discretionary sector were pacing the declines for the broader market.
Then at 10.30 ET, the chairman of the Federal Reserve reiterated concerns about inflation and dampened investor hopes that weaker growth would soon push the Fed closer to cutting interest rates. According to him, “Recent levels of inflation, have been somewhat elevated, and the level of core inflation remains uncomfortably high”. But, Wall Street did not like Fed’s comments today and stocks plunged.
Crude futures kiss $64/barrel after trading at $68 on late electronic trading
From a sectoral standpoint, banks and brokers were the main losers for the day while oil and metal-miners were the winners. Telecom services joined with financials led the list of losers, but the technology, industrial and consumer discretionary sectors were among the more influential loss leaders.
Trading volumes were light with 1.522 billion shares changing hands on the New York Stock Exchange and 1.905 billion shares trading on the Nasdaq stock market. Declining issues outpaced gainers by 21 to 11 on the NYSE and by 19 to 9 on the Nasdaq.
Crude-oil futures for light sweet crude for May delivery closed at highest level of the year till date at $64.08/barrel (higher by $ 1.15/barrel or 1.8%) on the New York Mercantile Exchange. Prices increased after tensions between Iran and the U.K. ignited concerns about supply disruptions in the Persian Gulf. On an intra day level, the contract traded as high as $64.85/barrel. The contract touched a 6-month high of $68.09 in electronic trading late Tuesday, more than $5 above its regular-session closing price Tuesday of $62.93.
For tomorrow, investors will look for economic data to help set the tone of trading. After Labor Dept.'s weekly jobs report before market opens, final read on Q4 GDP and Chain Deflator are also to be released tomorrow
Anand Rathi - Daily Technical Note
Nifty and Sensex have exhibited bearish candlesticks.
Technically, one may use the level of 3680 (Nifty) and 12665 (Sensex) as the stop loss level.
Nifty faces resistance at 3900 and Sensex at 13500.
BSE Smallcap and BSE Midcap Indices have exhibited a bearish candlestick.
CNX IT has exhibited a bearish candlestick.
In the Punter's zone we have a sell in Reliance Industries , Larsen & Toubro and Tata Steel.
In the technical zone we have a sell in S.B.I. , Sesa Goa and Divi's Laboratories.
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Sharekhan Investor's Eye dated March 28, 2007
Information Technology
Rupee plays spoilsport
The sharp appreciation of the rupee against all the other major currencies in the past couple of weeks has dented the sentiments towards the tech stocks and rightly so. That's because the unexpected sharp appreciation in the rupee at the end of the quarter would not only adversely affect the fourth quarter's financial performance of the information technology (IT) companies but also have a strong influence on their annual growth guidance for FY2008.
VIEWPOINT
Matrix Laboratories
Mylan's exclusivity for Norvasc to benefit Matrix
Mylan, the US-based generic company, has been awarded 180-day exclusivity to market Amlodipine Besylate, the generic version of Pfizer's anti-hypertensive, Norvasc. India's Matrix Laboratories, in which Mylan had acquired a controlling interest in 2006, is the supplier of active pharmaceutical ingredients (APIs) to Mylan.
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