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Wednesday, June 13, 2007

Ramesh Damani - skeptical of real estate and feels that valuations are ahead of fundamentals

Ramesh Damani, Member, BSE, if of the view that the market needs consolidation and has not yet peaked. He expects the market to trade in a range of 12,500-15,000.

Damani is skeptical of real estate and feels that valuations are ahead of fundamentals. He added that interest rates in India may have peaked.

Q: How do you look at the current phase that we are going through in the market?

A: Since May 2003, we have had four years of almost unprecedented double-digit gains, with the index may be quadrupling in value. At some point, the market had to take a pause, build a range, and test its values before it went higher. You finally might have come to that range of may be 12,500 on the bottom and 15,000 on the top. We have gone up to the top end of that range and kind of sold-off sharply from there. Typically, we might go and test both the bottom and top end of the range before it breaks out. My sense is we are probably in a range right now.

Q: Looking at history and how some of these ranges pan out, how long would you expect this kind of consolidation or digestion range to last?

A: It’s very difficult to guess because in the last four years the market has not been able to trade in a range either. It has been vertically up or very sharply down. But within the context of a multi-year bull markets, stocks can go sideways for a year or a year-and-a-half.

I am not predicting that it is going to happen since it is probably too early to say that. Our market has shown a vicious ability to bounce back when people write it off. We are not at a bull market top or we are not at any sort of peak in the market. There are attractive valuations out there. What surprises me is the fact that even in this kind of market, at 14,000, we can build a basket of midcap and largecap stocks that pays you 5% a year. That is not suggestive of the market, which is at the top.

Q: What about the other cycle that’s playing out in the bond markets, a five-year high for yields in US bonds? Is there a point you think where this market might become more attractive than global equity?

A: It’s a very fine point and you could be right because we have seen a lot of growth out here, with inflation also moderating. My sense is that interest rates have peaked in India and they have come down. I don’t think you can categorically say what’s going on in the West. Because of the interest rates sensitive in that market, there is a shift between bonds and equities that are taking place there. But India remains to be a very hugely attractive destination for most foreigners.

Q: Any reason to be concerned about what earnings might throw up or the chances that earnings might get downgraded for this market in the next few quarters?

A: I think the sectors that people are very worried about is auto and two-wheelers, which is sensitive to interest rates and tends to be very cyclical in nature. In property stocks, we are all watching it very carefully with the big IPOs closing in a few days time.

When a sector tends to top out, there has been a large amount of papers issued and the market cap has been bloated very significantly over the last few years. I think property stocks are something to watch about. Across the board, you can look at midcap stocks and some of the largercap stocks. You are getting great companies that are doing businesses at 20-30% and sporting good dividend yields. I would remain optimistic on them.

Q: Do you remain skeptical on the real estate space or over time has some of that skepticism washed down a bit as DLF closes tomorrow?

A: I am skeptical over this space and I think that valuations are a bit ahead of fundamentals, especially after DLF. I think DLF will say through pretty well in the next few days. There are a whole slew of new IPOs coming in, so there will be a flood of paper in the property market. A lot of the valuation that we initially got in realty stocks was due to scarcity since not many listed companies were available. But now with DLF, Unitech, and a whole bunch of other companies there will be plenty of stocks available. People will be evaluating them, as they do with every other company, on the base of earnings, cash flow, and future growth. I do not see anything particularly fantastic from these valuations on for them.

Q: What do you make of those two holding companies - UB Holdings and McDowell Holdings? Did you have a look at how they should be valued?

A: UB Holdings is one of these great holding companies, because I bought at Rs 30. If you factor in the bonus it went on as high as Rs 1,400-1,500. So It is like a 50x move in four years you got in a UB Holdings company and that is largely because, Mr Mallya put in a lot of his assets like Kingfisher Airlines and a whole bunch of other stuffs, the real estate development in Bangalore.

My sense is, ultimately McDowell Holdings and UB Holdings will be merged at some point and will be a holding company for the spirit business and flagship company for any other things he might do for like hotel, entertainment or airlines. At the current prices they are trading at about half times book value. So it seems pretty stable to me. Typically the discount in holding companies is fairly large. But over time they will also operating business in terms of airlines, entertainment business. I will continue to hold them.

Q: What about the rupee and the way things have been moving in the currency market. What would you do with the entire technology space now?

A: It has been a big worry of mine other than the property sector or the two wheeler and auto sector. I think the technology sector has been a long favourite of mine but it is very hard not to come to the conclusion that the Indian rupee is in a long-term bull market. I think for 50 years as you recall the Indian rupee has consistently depreciated against the dollar; so once it has reversed that and start a new trend it is not going to end soon so I am among the rupee bull camp.

If you are in the rupee bull camp you have to look at technology very strongly; it is not they can’t survive or even thrive in this atmosphere. As the Japanese car manufacturers showed - Toyota for e.g. that despite a rising yen they moved up the value chain from Corolla to the Camry to the Lexus so they will tend to do that but there is always a pain for adjustment period when the margin shrink and typically when margins shrinks in a company the market contracts the PE so there will be a difficult period going ahead for the technology people. I am still well invested in the midcap technology; I have reduced my exposure to large cap technology.

Q: When we spoke in May last year, you were quite concerned about how things would shape up for the entire midcap universe after a long time, in the last two months they have begun to move. If things turn around globally, do you think this space can hold out?

A: We are actually being able to build a basket of 5-7 stocks that could have yields of 5% plus which is extraordinary good yield. I am confident that this will be able to grow 15-25% over the next 2-3 years and with market caps, which are very modest. My suggestion to retail investors is this is a good space to look at.

Q: A lot of people have been tweaking their asset allocation a little bit. Does it makes sense in the current context where some of the bond funds, maybe fixed maturity plans giving you close to 10% or you think this is just a temporary phase equity in 2-3 year horizon will beat returns from any kind of fixed income products?

A: It’s an article of faith with me I certainly don’t see valuations to be that extraordinary that would scare me that would move me into cash as I did in May. I am finding stocks, good companies with dividend yields.

There is always inevitable amount of pain in long term investing. But I am a grizzle patron after 20 years; I can live with that pain. I see no reason to get out of these companies and move into debt unless your risk appetite has gone down, or you are closer to retirement and don’t want to put your money in financial market because they can be choppy over periods of time. We are all building that the Indian economy will continue to deliver 7-8% plus growth and is going to attract huge amount of money because that’s why you come and monetize the growth. Particularly if you feel you want to build wealth over next 5-10 years equity is the place to be.

Q: What’s your call on aviation. I know you like that space. What have you made of the consolidation moves, which have happened in the sector and do you think you can still make money from buying something like a Deccan?

A: I have had some exposure to this sector particularly in terms of Deccan Aviation but I think it is good that there is a consolidation going on within the industry and when you had the first statement coming out of the Deccan that you are going to compete not on price but on network ability, it made sense.

Basically in India I have a strong belief that the low cost model will work in India; airlines are commodity business and the lowest cost producers will always survive but because of the inherent nature of the Indian market there are very few airports that are available as oppose to say Europe where a lot regional airports available. So a low cost model is not still efficient but in an economy which is going to go to 50 million passengers by the year 2010 from about 20 million now. As a portfolio allocation you could probably have a bit of money in aviation though to be fairly honest I am not particularly gung-ho in terms of a percentage of my portfolio into aviation at this point.

Financial Technologies

Financial Technologies

India top equity fund picks

India top equity fund picks

Commodities & High Noon

Commodities & High Noon

Derivatives Wrap

Derivatives Wrap

Gold tumbles to 8-month low at Rs 8,600

Gold prices tumbled to an eight- month low at Rs 8,600 on the bullion market here on 13 June on lack of buying enquiries coupled with persistent stockists offerings, triggered by fall in precious metals in global markets.
Off-marriage and festival season coupled with lack of industrial demand also pulled down the precious metals.
In the London market, gold was fixed lower in the morning at $644.10 per ounce as against afternoon fixing of $647.25 an ounce on 12 June.
In New York, gold and silver prices declined following higher treasury yields and more strength in the US dollar, traders said. August gold fell by $5.90 to $653.10 an ounce on the Comex division. Comex July silver also lost 18.5 cents to $13.09.
In the local market, standard gold (99.5 purity) dropped further by Rs 40 per ten grams to Rs 8,600, a level not seen since 13 October 2006, from Rs 8,640 previously. Pure gold (99.9 purity) also fell to Rs 8,650 from Rs 8,690 yesterday.
Silver ready (.999 fineness) moved down by Rs 160 per kilo to Rs 18,150 from Rs 18,310 previously.

DLF IPO - Day 3 Subscription Details

Qualified Institutional Buyers (QIBs) - 3.1755 times

Non Institutional Investors - 0.0491 times

Retail Individual Investors (RIIs) - 0.2012 times

Employee Reservation - 0.5047 times

(450520 off 504690 employee bids are PRICE bids)

Vishal Retail - Subscription Details

Qualified Institutional Buyers (QIBs) - 45.5514 times

Non Institutional Investors - 311.5705 times (yes 311)

Retail Individual Investors (RIIs) - 50.4015 times

Employee Reservation - 1.3438 times

OVERALL - 69.08 times

Religare - KPIT Cummins, PVR Cinemas, Federal Bank, Sangam

Religare - KPIT Cummins, PVR Cinemas, Federal Bank, Sangam

Post Market Commentary

The BSE Sensex ended the session on a negative note as it declined by 127.92 points to close at 14,003.03 while Nifty closed lower by 42.15 points at 4,113.05. Of the 2,538 stocks actively traded on BSE, 1,374 stocks declined while 1,076 stocks advanced. The BSE Mid cap and Small cap closed lower by 18.77 points and 4.61 points at 6,065.63 and 7,224.27 respectively.

BSE Auto Index closed lower by 17.72 points at 4,628.54 as M&M (1.34%), Hero Honda (1.51%) and Bajaj Auto (0.34%) closed in red while Tata motors (0.68%) and Maruti Udyog (0.15%) closed in green.

BSE Capital goods index fell drastically by 131.94 points to close at 10,724.38 as ABB (2.99%), L&T (1.85%) and BHEL (0.60%) closed in red.

BSE bank index closed lower by 84.83 points at 7,368.69 as SBI (3.19%), BOI (3.02%), PNB (1.40%), ICICI bank (0.67%) and HDFC bank (0.43%) closed in red.

BSE Metal index closed at 10,275.27 dropped by 84.65 points as SAIL (2.37%) and Tata Steel (1.31%) closed in red while Hindalco (0.63%) and Nalco (0.41%) closed in green.

BSE IT index closed marginally lower by 8.63 points at 4,966.87 as Patni computers (3.02%), Wipro (1.56%), HCL Tech (0.58%) and Infosys (0.22%) closed in red while Satyam computers (1.65%) closed in green.

BSE Health Care Index closed in positive at 3,748.38 up by 8.54 points as Dr. Reddy lab (2.72%), Sun pharma (1.45%) and Cipla (0.10%) closed higher while Ranbaxy labs (1.50%) closed lower.

BSE FMCG index closed lower by 17.26 points at 1,772.80 as HLL (1.56%) and ITC (1.14%) closed in red while Dabur (1.86%) closed in green.

BSE oil & gas index closed in negative at 7,394.36 down by 93.35 points as BPCL (3%), GAIL (2.77%), HPCL (2.02%), IPCL (1.10%) and Reliance petroleum (0.94%) closed in red.

Sensex sheds 128pts; SBI, RCom, HLL drag

The Sensex opened marginally higher at 14,140, up nine points, and spurted to a high of 14,153. The index, however, soon slipped into the negative zone due to lack of buying interest at higher levels.

Persistent selling mainly in banking and FMCG stocks saw the index slide to lower levels as the day progressed. The index touched a low of 13,968 - down 185 points from the day's high.

The Sensex finally ended with a loss of 128 points at 14,003.

The BSE Bankex, FMCG and Oil & Gas indices were down around 1% each at 7369, 1773 and 7397, respectively.

The market breadth was negative - out of 2,535 stocks traded, 1,374 declined, 1,070 advanced and 91 were unchanged today.


SBI tumbled over 3% to Rs 1,289. Reliance Communications (RCom) shed 2.5% at Rs 486.

HLL and Larsen & Toubro plunged nearly 2% each to Rs 186 and Rs 1,871, respectively.

HDFC dropped 1.7% to Rs 1,751. Wipro, Reliance, Hero Honda and Ranbaxy slipped 1.5% each to Rs 531, Rs 1,673, Rs 695 and Rs 363, respectively.

Gujarat Ambuja and Tata Steel have declined 1.3% each to Rs 109 and Rs 595, respectively.

ACC, Bharti Airtel, Grasim, ITC and TCS were down around 1% each to Rs 797, Rs 797, Rs 2,356, Rs 152 and Rs 1,203, respectively.

Dr.Reddy's surged 2.7% to Rs 628. Satyam rallied 1.7% to Rs 486.


Debutant Time Technoplast topped the value chart with a turnover of Rs 636.30 crore followed by Reliance (Rs 148 crore), Nestle (Rs 103.65 crore), Indiabulls Real (Rs 100.75 crore) and SBI (Rs 82 crore).

Time Technoplast, also, led the volume chart with trades of around 1.33 crore shares followed by G V Films (81.25 lakh), IFCI (66.40 lakh), Reliance Natural (61.60 lakh) and Dabur (51.60 lakh).

India IT Services

India IT Services



Prabhudas Lilladher - Earnings Guide

Prabhudas Lilladher - Earnings Guide

Kotak - Subex Azure, Vishal Retail, IIP Performance

Kotak - Subex Azure, Vishal Retail, IIP Performance


Via Unknown Source

Dear Investors,
We have raised certain questions to the management of DLF Ltd. and most of them have remained unanswered. We suggest you to read these questions before you invest in DLF LTD.
  1. DLF Ltd. promoter Rajiv Singh, along with certain persons acting in
    concert, admitted to a violation of the provisions of Regulation 11 (2) of
    the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 by acquiring equity shares in excess of specified limits without making a prior public announcement as prescribed under the regulations. He agreed to pay a penalty of Rs. 500,000, which was accepted by the SEBI subject to certain conditions set forth in its letter dated February. Can you please tell us that how many shares were acquired by him at what price, in how much period, the modus operandi and the reasons for hiding this information?

  2. DLF got its shares delisted from stock exchanges earlier. Was it an investor friendly move?

  3. How much money has been given as advance to builders/partners in India with which your company has entered for joint development of property? Also what is the profit sharing ratio with the builders/partners?

  4. What are the credentials of the builders/partners with whom your company has entered for joint development of property in the last one year?

  5. How much worth of properties have been sold to NRI's in the last three years?

  6. What is your accounting policy for treating any property sold? How much percentage of money received against any property is considered for property to be treated as sold?

  7. What are your views on the prospects of real estate market and your capability to make good profits to serve shareholders?

  8. What are the basis of valuation reports of Cushman & Wakefield and Jones Lang LaSalle, for estimating DLF properties?

  9. There is a difference in the valuation of properties done by Cushman & Wakefield and Jones Lang LaSalle and this difference is Rs.81 billion which is a huge sum. What valuation you feel is the correct one and why?

  10. How much partial payments have been made for the different pieces of land which you have planned to acquire?

  11. What is the present floating rate of 40.0 billion debts (stated on page No. of prospectus) and how much it has increased in the last two years? Why did not you enter into choosing a fixed rate of interest for these debts?

  12. Your company on April 30, 2006 had outstanding obligations to pay an amount of Rs. 28.7 billion towards the acquisition of lands. Can you please tell us that in how much time you have to make these payments? Are there any delays?

  13. In valuations done by Cushman & Wakefield and Jones Lang LaSalle how much appreciation in land has been observed in the last three years?

  14. Out of all the land bank mentioned in the prospectus, how many pieces of land you have as clear title and for how much clear titles are expected and by when?

  15. How many of your agreements with third parties in relation to the purchase of land have expired or may be invalid and in money terms how much is the total amount?

  16. In your prospectus you have said that "We may be forced to sell some or all of the assets in our portfolio if we do not have sufficient cash or credit facilities to make repayments" Can you please tell us that how many such assets have been sold so far? Also what is the criterion for maintaining these records?

  17. What is the number of relationships with landowners and international joint venture partners; your company has at present?

  18. Out of the public issue how much money you are raising for SEZ's, mega infrastructure projects and Hotels?

  19. What is the 'specified formula' under which you have an option to require DLF assets to purchase your commercial and retail properties at a minimum price?

  20. 20. How shareholders' investors will be taken care of when DLF Assets will be buying properties from DLF Ltd as in both the companies promoters have controlling interest?

  21. How much on an average your sale prices have increased in last three years against the rise in major raw material - steel and cement?

  22. How much part of your income has accrued from property management services to your completed residential, commercial and retail developments in the last three years?

  23. How much land agreements restrict your ability to sell, transfer or assign the lands without the prior consent of the relevant authority; out of your total land bank?

  24. DLF power has to recover Rs. 60 crores from its customers as of March 31,2006 and if this amount is not realized then how much the operations of DLF Ltd. will be affected? When this amount is expected to be realized?

  25. Why some independent agency was not hired to prepare the acreage and square footage data presented in this Draft Red Herring Prospectus?

  26. With which companies, one of directors, Mr. Ravindra Narain is mentioned in the defaulters list in respect of default committed by two companies (which are not part of our company, subsidiary, or promoter group) where he was a director?

  27. Company claims to have 60 year history of service excellence. Can you show us the record of sales and profitability for last twenty years of excellence so that investors can decide on their own?

  28. Company has acquired "to develop over 118 million square feet of saleable or lettable area. A significant portion of our land reserves under development was acquired at a relatively low cost." (as per prospectus). What is this lower cost? Why vague, ambiguous and confusing words are used in prospectus to misguide investors?

  29. It has been said in the prospectus that "We believe that our land reserves provide us with a major competitive advantage as well as protection against land price, inflation, and allow us to respond more effectively to changes in market conditions." (as per prospectus) You are looking only one side of the coin. What will happen if prices fall? Shareholders are benefited only if the market goes up and that you are distorting the facts by calling it "changes in market conditions". Changes can be both up and down.

  30. Company has paid as on April 30, 2006, partial payments to acquire 2,893 acres of land across the country. What is the segregation of amount paid, name of cities and to whom this amount has been paid?

  31. What were the reasons for furnishing old data and hiding latest information from the investors?

  32. Why power supply sales have fallen in last three years from Rs. 114.90 crores for Fiscal'2004 to Rs.108.70 crores for Fiscal'2006?

  33. There is spurt in other income of Rs.16.70 crores (other than interest) for fiscal 2006. What is the source of this income?

  34. Your income from investments has increased from zero for Fiscal'2004 to Rs.16.30 crore for Fiscal'2006. What is the source of this income and is it exception income or expected to continue in future and what are the possibilities of its moving up or down?

  35. What were the reasons for almost more than 100% growth for fiscal'2006 in sales revenue at Rs.937.20 crores against Rs. 413 crore for fiscal 2005? How much growth was due to selling of more space and how much due to high profit margins?

  36. Your sales for fiscal 2006 have increased by 298.40 crores against fiscal 2005 whereas your sundry debtors have increased by Rs.373.00 crore in the same period. What are the reasons for the same? Does it mean that more sales have been done on credit to increase sales without increasing the realization?

  37. What is the basis of assessment of goodwill which has increased from Rs. 52.20 crore for fiscal 2005 to Rs.848.90 crore for fiscal 2006?


What is your accounting policy for treating any property sold? How much percentage of money received against any property is considered for property to be treated as sold?

Income from sale of constructed properties is recognised using the "Percentage of Completion" method. For more details of the accounting policy, please see page 386 of the Red Herring Prospectus (RHP)

What are the basis of valuation reports of Cushman & Wakefield and Jones Lang LaSalle, for estimating DLF properties?

There is a difference in the valuation of properties done by Cushman & Wakefield and Jones Lang LaSalle and this difference is Rs.81 billion which is a huge sum. What valuation you feel is the correct one and why?

Valuation reports of Cushman and Wakefield and Jones Lang LaSalle are not included in the RHP

Out of the public issue how much money you are raising for SEZ's, mega infrastructure projects and Hotels?

The purpose for which the funds are being raised in the public issue have been described in the section "Objects of the Issue" on page 44-47 of the RHP

How shareholders' investors will be taken care of when DLF Assets will be buying properties from DLF Ltd as in both the companies promoters have controlling interest?

Please see disclosure of page 81 of the RHP : "In fiscal 2007, we recognized revenue of Rs. 2,207.1 crore in relation to the sale of certain commercial properties to DAL. These transactions were approved by our audit committee, following which the properties were transferred to DAL. In the future, we may sell additional commercial properties. Any such sales are expected to be conducted through a competitive bidding process which would require potential purchasers to establish capitalization rates at the time of bidding. DAL has agreed that it will not compete with us in our real estate project developments, but may act as a codeveloper with us in SEZ projects."

How much part of your income has accrued from property management services to your completed residential, commercial and retail developments in the last three years?

This is covered under "Maintenance Income". Please see page 388 of the RHP.

Trading Calls

Buy Shashun Chemicals at Rs 143-120. Stop Loss at Rs 115. Target of Rs 182 and 258 (Delivery-based call)

Market Close: Weakness persists.. 14k Breached..

Indian market continues to baffle down after a positive opening. Weaker cues from the global markets kept Indian bourses under pressure. In the mid session market lost its ground on account of selling pressure across. Markets continued to trade weak till the end as there was lack of buying which kept indices in red. IT stayed mixed as the Dollar despite Rupee fall as it to felt the selling pressure. Indices slipped below 14000k levels but managed to close above 14k levels. Small Caps & MidCaps which were holding out their gains till noon also ended in red giving market an extremely negative breadth.

Sensex closed down by 128 points at 14003.03. Weighing on the Sensex were losses in SBI (1282,-4 percent), RCVL (485.5,-2 percent), TISCO (591.55,-2 percent), L & T (1870.85,-2 percent) and HDFC (1750.95,-2 percent). Losses were restricted by gains in Dr Reddys (627.8,+3 percent), Satyam (484.3,+1 percent), Hindalco (160.3,+1 percent), Rel Energy (520.25,+1 percent) and Tata Motors (643,+0 percent).

Time Technoplast (TTL) which is into manufacturing and sale of technology based polymer products. Today got listed at Rs 490 a 55% premium against its issue price of Rs 315. The stock opened at Rs 490 and touched high of Rs 499 backed by heavy buying at the counter. The company had come out with an IPO of 3921500 equity shares. The issue received good response from the institutional investors and was subscribed 50 times. The proceeds of the IPO will be used to finance company's upcoming projects including its Himachal Pradesh-based facility for manufacturing disposable medical devices and an integrated injection moulding facility at Silvassa.

Aurobindo Pharma surged on the rumors that its is laying off stake to either co-player in industry or to a private equity player. But, the management has disapproved the rumors saying that the reports are out of context. On whether the company will need funds for the acquisition. The company already has more than USD 100 million cash and also the future cash flows will added to the chest of purchases. The company books show a debt of Rs 900 crore. On that debt has been very well addressed and have a working capital debt at this point in time for which we have receivables against the working capital. The rumors were out of market reach which tuned in. The stock ended up by 2.7% on the news.

Technically Speaking: Volatile market with no clear direction as we mention. Sensex made an intraday high of 14,153 and low of 13968. The breadth was in favor of decline as there were 1,433 declines against 1119 advances. Turnover stood low at Rs 3530 Cr. As Sensex has broken lower the support of 14000 we can expect a move as low as 13600 while support is seen at 13815 levels.

Sensex ends a tad above 14000

The market succumbed to intense selling pressure in late trade when the Sensex slipped below 14,000 level to hit a low of 13,968.38. Sensex settled just above 14,000 mark. It lost 127.92 points or 0.91% to 14,003.03. Earlier today, it opened higher at 14,139.92 and advanced to a high of 14,152.79 shortly.

The S&P CNX Nifty lost 42.15 points or 1.01% to 4,113.05. The Nifty June 2007 futures were at 4,082.90, a discount of 30.10 points compared to the spot closing of 4,113.05.

The market was weak right from the opening bell and kept on declining as trading progressed. There was fresh selling at every small rise. Also, lack of fresh buying played spoilsport. The turnover was low, indicating that the action might have shifted to primary markets.

As per latest data from the stock exchanges, the IPO of DLF was subscribed 1.96 times by end of the third day today, 13 June 2007. The IPO closes on Thursday, 14 June 2007. The IPO would constitute 10.27% of the fully diluted post-issue capital of the company.

The market breadth was weak on BSE, with 1,433 shares declining as compared to 1,119 shares that advanced. 89 remained unchanged.

The BSE Small-Cap Index lost 0.06% to 7,224.27 while the BSE Mid-Cap Index settled 0.31% lower at 6,065.63

The total turnover on BSE amounted to Rs 4189.24 crore while the NSE futures & options segment turnover amounted to Rs 34009.31 crore.

Among the Sensex pack, 25 slipped while the rest gained.

State Bank of India (SBI) lost 3.74% to Rs 1282 on 6.26 lakh shares, and was the top loser among Sensex constituents. The stock slipped on fears of more monetary tightening measures by the Reserve Bank of India, following a stronger-than-expected industrial production numbers for April 2007 announced yesterday, 12 June 2007. Industrial production rose 13.6% per annum in April 2007, higher than street expectations of 11.3% rise. The figure for March 2007 was also raised upwards from 13% to 14.5%.

ICICI Bank lost 0.97% to Rs 910.15, after advancing to a high of Rs 937. ICICI Bank said during trading hours today, 13 June 2007, it had filed offer documents to raise up to Rs 8750 crore in India. In late April 2007, ICICI Bank had announced that it planned to raise equity to the tune of Rs 20000 crore from domestic and overseas markets.

Also, ICICI Bank informed the stock exchanges after market hours on Tuesday, 12 June 2007, that it has received a firm commitment of Rs 2650 crore ($650 million) for a 5.9% stake in the holding company for its insurance and asset management business. The investor names were not disclosed.

The BSE Bankex declined 1.14% at 7,453.52. Other losers from the banking pack were Bank of India (down 3.50% to Rs 182), Oriental Bank of Commerce (down 1.52% to Rs 206.90), Kotak Mahindra Bank (down 2% to Rs 551.50), HDFC Bank (down 0.20% to Rs 1085) and Bank of Baroda (down 1.57% to Rs 248).

Reliance Communications (down 2.86% to Rs 483.50), Hindustan Unilever (down 2.14% to Rs 185.60) and L&T (down 2.07% to Rs 1866.50) edged lower.

Cement major ACC was down 1.23% to Rs 797. It had reported a 19% increase in sales in May 2007, more than three times the pace of growth recorded in the previous month, indicating strong demand for cement from homes and other construction projects.

Pharma major Dr Reddy’s Laboratories (DRL) was the top gainer among Sensex constituents. It surged 2.51% to Rs 627, on 3.37 lakh shares after Credit Suisse raised its rating on the stock to "outperfom" from "neutral".

Tata Steel eased from high of Rs 611.90 and was down 1.93% to Rs 591.45. Anglo-Dutch steelmaker Corus, owned by Tata Steel, on 12 June 2007, attributed the decision to raise UK wire rod prices by at least 7% in the third quarter to rising demand. It said the price increase will apply to deliveries from 2 July 2007. Tata Steel had won a bid battle in January 2007 to take over Corus.

Index heavyweight Reliance Industries (RIL) slipped 1.71% to Rs 1,670.50, on 8.75 lakh shares. RIL is eyeing stakes in refineries in the United States and West Asia to increase its presence overseas. The company has stakes in oil exploration blocks in Yemen and Oman, and is also looking to acquire similar assets in Peru and Colombia, reports indicated.

IT pivotals stayed mixed, after a pause on Tuesday, 12 June 2007, from a stead advance over the past few days. The BSE IT Index lost 0.17% to 4,966.87. Satyam Computers rose 1.22% to Rs 484.30 while TCS (down 1.05% to Rs 1202), Infosys (down 0.35% to Rs 1980) and Wipro (down 1.69% to Rs 530) declined. All these stocks eased from their highs of the day in a weak market. As per reports, Wipro and US based EMC Corp have formed an alliance to focus on information technology infrastructure. The financial details were not available.

Rupee eased against the dollar on Wednesday, 13 June 2007, on buying from importers. In early trade, the rupee was at 40.855/865 per dollar, weaker than the previous close of 40.7475/7575.

Time Technoplast settled at Rs 480.35 on BSE, a premium of 52.50% over the IPO price of Rs 315. The stock debuted at Rs 415 which was also its low for the day. It hit a high of Rs 498. On BSE, 1.33 crore shares were traded in the stock. The IPO had received strong investor response.

Debutante Time Technoplast was the top traded counter on BSE with turnover of Rs 636.30 crore followed by Reliance Industries (RIL) (Rs 148 crore), Nestle India (Rs 103.65 crore), Indiabulls Real Estate (Rs 100.75 crore) and State Bank of India (SBI) (Rs 82 crore).

Time Technoplast, was also the volume topper on BSE with 1.33 crore shares followed by G V Films (81.25 lakh shares), IFCI (66.40 lakh shares), Reliance Natural Resources (61.60 lakh shares) and Dabur (51.62 lakh shares).

Dabur India saw huge volumes of 51.62 lakh shares after 3 block deals of 15.87 lakh each were struck on the counter in opening trades at Rs 101.33 per share on BSE. The stock was up 1.31% to Rs 100.90

Shares of real estate developers were in demand after the IPO of DLF received good response. Unitech (up 0.30% to Rs 491.45), India Bulls Real Estate (up 0.91% to Rs 350.30), and Parsvnath Developers (up 2.12% to Rs 319) gained.

Drug maker Wyeth gained 3.81% to Rs 558.25 after it recommended a dividend of 300%, or Rs 30 per share of Rs 10 face value. Wyeth's net profit galloped 648.6% to Rs 13.25 crore in Q4 March 2007 as against Rs 1.77 crore in Q4 March 2006. Sales rose 345 to Rs 60.27 crore in Q4 March 2007 (Rs 44.98 crore).

Simplex Infrastructures galloped 10% to Rs 367.15 after the construction firm said it had secured two overseas orders worth Rs 1007 crore.

Rolta India rose 1.78% to Rs 417.25 on receiving shareholders' nod for hike in the limit on FII investment in the company from 40% to 75%. The FII investment would exclude non-resident Indian and overseas corporate body investments. Rolta also received approval to issue any equity linked foreign/ Indian securities such as foreign currency convertible bonds (FCCBs), American depository receipts (ADRs), global depository receipts (GDRs), or equity shares through qualified institutional placements (QIPs) for an amount not exceeding $250 million or equivalent Indian rupees.

Lanco Infratech gained 3.54% to Rs 169.50 on follow-up buying. On 11 June 2007, Lanco Infratech’s group firm, Lanco Horizon Properties had entered into a joint development agreement for developing an integrated township in Chennai. The township would consist of residential towers, shopping space and service apartments. The project is estimated to cost Rs 600 crore and would be completed within 36 months from the date of plan approvals.

GTL advanced 3.48% to Rs 222.95. As per recent reports, France Telecom is set to acquire GTL's IT business for about Rs 250-300 crore. GTL had recently put its IT division on the block following a decision to focus on its core network services business

MICO gained 3.44% to Rs 4493.95. On 27 April 2007, MICO's parent Robert Bosch GmbH had announced an open offer to the shareholders of MICO to buy over 64 lakh shares in the company constituting 20% of the paid-up equity share capital at Rs 4,000 per share.

Sical Logistics jumped 5% to Rs 258.30 on deciding to raise up to Rs 103 crore of equity through private placement. Sical Logistics announced on Tuesday, 12 June 2007 after the market hours that its board had approved raising up to Rs 103 crore through issue of 20.50 lakh equity shares each to Credit Suisse Singapore and Macquarie Bank.

Tanla Solutions declined 1.36% to Rs 383 after announcing Rs 20-crore infusion in Tanla Mobile Asia Pacific, Singapore. The announcement after the market hours on Tuesday, 12 June 2007, of its Rs 20-crore investment will make Tanla Mobile Asia Pacific, Singapore, a wholly owned subsidiary of TSL.

Deccan Aviation gained 1.88% to Rs 133 after Vijay Mallya, head of UB Group which acquired 26% stake in Deccan Aviation, said the low cost carrier may raise air fares by about Rs 500 to stem losses. He also said that airfares should reflect exact costs, including aviation turbine fuel (ATF) and congestion charges. Air Deccan can cover these costs and still remain competitive.

Praj Industries was down 1.12% to Rs 521. The company has finalised an agreement to form a joint venture with Aker Kvaerner, after market hours on Tuesday, 12 June 2007 to form a company in Europe that will be called BioCnergy Europe. Praj will have 60% stake in BioCnergy, while Aker Kvaerner will have 40% of the shareholding.

Most Asian and European indices edged lower today, 13 June 2007, mirroring the overnight fall in US markets, with export-related shares such as Toyota Motor Corp. retreating on concerns over global growth, while Sumitomo Metal Mining and BHP Billiton lost ground on weaker metals prices. Japan's Nikkei slipped 0.16%, while Hong Kong's Hang Seng index slumped 0.28%.

South Korea's Seoul Composite (down 0.46%), Singapore's Straits Times (down 0.29%) also declined.

However, China’s Shanghai Composite (up 2.56% to 4,176.48) and Belgium’s BEL-20 (up 0.05% to 4,551.09) advanced.

US stocks plunged on Tuesday, 12 June 2007, as investors grappled with a seemingly relentless rise in bond yields. The Dow Jones industrial average slipped 129.95 points, or 0.97%, to 13,295.01. The blue chip index is now 381 points, or 2.8%, below its all time closing high of 13,676.32, reached on 4 June 2007.

The broader stock indices also declined. The Standard & Poor's 500 index fell 16.12 points, or 1.07%, to 1,493.00, while the Nasdaq composite index dropped 22.38 points, or 0.87%, to 2,549.77.

Crude oil was little changed in New York after fall in gasoline yesterday on speculation US fuel stockpiles rose a sixth week as refiners increased output. Crude oil for July delivery was $65.29 a barrel, down 6 cents, in after-hours electronic trading on the New York Mercantile Exchange in Singapore.

As per latest data, FIIs were net buyers in equities to the tune of Rs 545.30 crore, while mutual funds also sold equity worth Rs 339.80 crore on 12 June 2007

Trade Minister Kamal Nath said on Wednesday that India is confident of meeting its 2007/08 export target of $160 billion, despite the rise in the rupee. India's export target of $160 billion for the fiscal 2007/08 year, which began in April, compares with exports of $125 billion in 2006/07.

Sensex slips on weak global markets

On weakness in global markets and expectation that the market is in correction phase, the market witnessed accumulation of fresh short positions and squaring of long positions which led to two-way selling today. The Sensex resumed with a positive gap of nine points despite a major fall in the US markets and weak Asian indices. The market turned choppy as selling intensified among the Sensex heavyweights, FMCG, oil and capital goods stocks. While the index moved in a range with a negative bias thereafter, sustained selling saw the Sensex touch the day's low of 13968 towards the close. The Sensex finally closed at 14003, down 128 points, while the Nifty shed 42 points to close at 4113.

The breadth of the market was weak. Of the 2,540 stocks traded on the BSE, 1,372 stocks declined, 1,083 stocks advanced and 85 stocks ended unchanged. Except fro the BSE CD Index and the BSE HC Index all the sectoral indices received a beating. The BSE Oil & Gas Index led the slump and shed 1.25% at 7379, the BSE CG Index was down 1.22% and the BSE Bankex was down 1.14%.

Among the 30 Sensex stocks 22 ended in the red and eight closed in the green. Among the laggards SBI was down 3.19% at Rs1,289, Reliance Communication declined by 2.46% at Rs486, L&T shed 1.85% at Rs1,871, HDFC dropped 1.70% at Rs1,751, Wipro lost 1.56% at Rs531 and HLL fell 1.56% at Rs187. However, select heavyweights attracted decent buying support. Dr Reddy's Lab surged 2.72% at Rs628, Satyam computers rose 1.65% at Rs486 and Tata Motors, Hindalco, Reliance Energy, Maruti Udyog, ONGC, NTPC and Cipla gained marginally.

Over 1.32 crore Time Technologies stocks changed hands on the BSE followed by GV Films (81.26 lakh shares), IFCI (66.81 lakh shares), Reliance Natural Resources (61.62 lakh shares) and Dabur India (51.62 lakh shares).

Value-wise Time Technologies registered a turnover of Rs636 crore followed by Reliance Industries (Rs147 crore), Nestle (Rs103 crore), Indiabulls Real Estate (Rs100 crore) and SBI (Rs81 crore).

DLF IPO - Apply or Not?

Maybe these results should help you make the decision

Are you applying for DLF...

Over the last 6 months, real estate prices have...

Cheapest real estate stock or too many burnt fingers... ?

The stock that will give the best returns in 5 years will be ...

Our view ? Better be safe than sorry

FIIs power DLF oversubscription

Foreign investors seem to have ignored warning signals on real-estate by placing bids for over Rs 10,000 crore for the mega initial share offer by Delhi property developer DLF Ltd.

This is more than the total initial public offering (IPO) size of Rs 9,625 crore at the upper price band of Rs 550 per share.

The IPO for 175 million shares was oversubscribed 1.28 times at 5 pm today. There are two more days to go for the issue close.

The retail portion, however, is yet to gather speed, being subscribed only 0.101 time.

Data available with the National Stock Exchange shows that foreign institutional investors (FIIs) have placed bids for 198.7 million, out of the 104.44 million shares reserved for qualified institutional buyers (QIBs).

In fact, the bids by FIIs are higher than the total size of 175 million. At the lower price band of Rs 500, the FIIs bids are valued at Rs 9,935 crore.

“Foreign investors have been putting money into the country’s realty sector. The valuation and risk associated with DLF will be more or less similar to that with the Sensex and the Nifty,” said Arun Kejriwal of Cris Research.

For foreign investors, DLF will be one of the few stocks that they relate with the future of their investments in a specific market, he said, adding, “That’s the reason it has attracted big foreign investment”.

The Qualified Institutional Buyers (QIBs) portion, which forms 60 per cent of the IPO, was oversubscribed over two times.

Unconfirmed reports said a few global investors are believed to have placed bids worth $1 billion and most of the inflows have come in the form of participatory notes. Overseas funds investing in India have also put a large number of bids for the issue.

DLF is expected to join Futures and Options (F&O) trading on its listing. The upper band of the IPO values the company at $23 billion, which will be more than double the market valuation of Unitech, the current top real-estate firm by this measure.

“The realty sector is facing a few issues. But, there is no reduction in foreigners interest in this sector. Real estate is a significant asset class. Foreign players want to broaden their exposures to this sector,” Avinash Narvekar, partner, Ernst & Young said


Q4 Review: The net profit growth rate of cement firms declined to 85 per cent in the fourth quarter ended March 2007 compared with 150 per cent in the first three quarters. The Q4 sales growth was subdued at 35.2 per cent compared with 51.2 per cent in Q3, 40.5 per cent in Q2 and 37.3 per cent in Q1.

Government intervention curbed the industry’s pricing power in a traditionally strong quarter. After abolishing the customs duty on imports in January, the government increased the excise burden through a dual excise duty regime in February and March, abolished the countervailing duty and special additional duty on imports. As a result, cement firms increased their focus on power cost amid rising freight costs.

Trigger: The import duty reduction from 12.5 per cent to nil made imports cheaper by Rs 20 a bag. The excise duty was raised to Rs 600/MT from Rs 400/MT. Cement producers passed on the rate hike to consumers almost overnight, raising prices by Rs 15 a bag.

The government put pressure on cement producers to freeze the hikes following their refusal to roll back the pass-on of excise duty. With the CVD on cement reduced to zero, the import parity price reduced by Rs 23 a bag.

Outlook: The cement despatches in the first two months of 2007-08 was almost static at 8.68 per cent compared with 8.08 per cent in the corresponding period last year. According to analysts, the net price realisations have remained unchanged in the last four months, with the exception of southern and western regions.

Though procedural issues have delayed imports, the excess capacity creation of 65 million tonnes by the end of 2008-09 remains a major concern. The industry’s volume growth is slowing down owing to the rising capacity.

Moreover, it is not able to reap the benefit of higher prices owing to government controls. The cement stocks have underperformed the market by 30 per cent since the announcement of the price-control measures.

Market Tracker

Market Tracker

Anand Rathi - Daily Fundamental Snippets - June 13 2007

Anand Rathi - Daily Fundamental Snippets - June 13 2007

Religare - Daily Technicals, Futures, Market Outlook - June 13 2007

Religare - Daily Technicals, Futures, Market Outlook - June 13 2007

Investsmart - Morning Call

Market Grape Wine :

In House :

Nifty at a support of 4120 & 4100 levels with resistance at 4150 & 4180 levels .

Markets to open negetive but might find buying at lower levels .

Yesterday heavy short covering took place at fag end of the market .

Out House :

Markets at a support of 14004 & 13949 levels with resistance at 14242 & 14325 levels .

Buy : RIL

Buy : IFCI

Buy : Praj bullet 570 by week end s/l of 514

Buy : ABB

Buy : GujNre

Buy : GlenMark & Lupin & Auropharma

Buy : IBulls & Unitech at dips

Buy : SKumar

Dark Horse : Praj , GujNre ,IFCI , Glenmark , Asian , ABB & Divis

Anand Rathi - Daily Technical Note

Nifty and Sensex have exhibited a bullish candlestick.

Technically, one may use the level of 4100 (Nifty) and 13900 (Sensex) as the stop loss level.

Nifty faces resistance at 4210 and Sensex at 14250.

BSE Small cap and BSE Midcap also exhibited bearish candlesticks.

CNX IT has lost ground.

In the Punter's zone we have a Sell Parsvnath.

In the Technical call section, we have a Sell in ICICI Bank, Ibrealest and Ivrclinfra.

Anand Rathi - Daily Technicals

Weakness in global markets may weigh

Overnight fall in US markets and weak Asian indices in current trades likely to weigh on the local indices in early trades. The market is likely to exhibit weak trends on the back of a strong intra-day volatile moves. The sentiment is likely to remain bearish on weak global indices. Also the FIIs remaining net sellers of equities in the domestic market may see the investors remain jittery. However, the yesterday's smart rally towards the close could release some pressure. Among the local indices, the Nifty could test higher levels at 4180 and has a support at 4100. The Sensex on the downside may slip to13900 and may face resistance at 14300.

US indices finished weak on Tuesday amid concerns that the Federal Reserve may have to raise interest rates later this year. While the Dow Jones declined 130 points at 13295, the Nasdaq dropped 22 points to close at 2550 on weakness in tech stocks.

Most of the Indian ADRs battered on the US bourses. VSNL tumbled over 3% and Infosys, Satyam, Dr Reddy's, HDFC Bank, MTNL, VSNL and Patni computers fell 1-2% each. While, ICICI Bank and Rediff gained around 1% each.

Crude oil prices fell marginally, with the Nymex light crude oil for July delivery slipped by 62 cents at $65.97 a barrel. In the commodity segment, the Comex gold for August series was down by $5.90 to settle at $653.10 a troy ounce.

Market may remain under pressure

Market is expected to remain under pressure tracking weak cues from global markets. Strong support exists for Sensex at the physiological 14,000 level, which was tested yesterday, but it managed to close well above it.

Also a stronger-than-expected industrial production numbers announced by noon on 12 June 2007, increased risks of more monetary measures by the Reserve Bank of India. Industrial production in April rose 13.6%, higher than street expectations of 11.3% rise. The figure for March was also raised upwards from 13% to 14.5%.

However value buying may not be ruled out, in later half of the day

Asian indices also edged lower mirroring weak US markets, with export-related shares such as Toyota Motor Corp. retreating on concerns over global growth, while Sumitomo Metal Mining and BHP Billiton lost ground on weaker metals prices. Japan's Nikkei slipped 114.10 points or 0.64% at 17,646.81 while Hong Kong's Hang Seng index slumped 77.44 points or 0.38% to 20,558.95.

South Korea's Seoul Composite (down 0.61% at 1,719.28), Singapore's Straits Times (down 0.20% at 3,554.42) also declined.

Wall Street shares plunged on 12 June 2007, as investors grappled with a seemingly relentless rise in bond yields. The Dow Jones industrial average slipped 129.95 points, or 0.97%, to 13,295.01. The blue chip index is now 381 points, or 2.8%, below its all time closing high of 13,676.32, reached on 4 June 2007.

The broader stock indexes also declined. The Standard & Poor's 500 index fell 16.12 points, or 1.07%, to 1,493.00, while the Nasdaq composite index dropped 22.38 points, or 0.87%, to 2,549.77.

Crude oil was little changed in New York after falling with gasoline yesterday on speculation U.S. fuel stockpiles rose a sixth week as refiners increased output. Crude oil for July delivery was $65.29 a barrel, down 6 cents, in after-hours electronic trading on the New York Mercantile Exchange in Singapore.

As per provisional data, FIIs were buyers in equities to the tune of Rs 335.30 crore while Domestic Institutional Investors (DIIs) sold Rs 80.86 crore of equities, on 12 June 2007

ONGC, India Economy

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Emkay - Bharati Shipyard

Emkay - Bharati Shipyard

Indiainfoline - Intraday Stock Ideas

NIFTY (4155) SUP 4133 RES 4188

SL 166 T 182, 185

BUY BIOCON (447.85)
SL 442 T 458, 561

BUY SCI (200.30)
SL 196 T 209, 211

SELL SRF (161.9)
@ 165 SL 169 T 155, 153

@ 178 SL 182 T 169, 166

Get used to choppiness

Life is not fair; get used to it. – Bill Gates

On the face of it, it looks like the bulls managed to triumph yesterday after yet another volatile day. But, a close look will tell you that it was only select index heavyweights, particularly Reliance, which won the day for the bulls. And don’t be surprised if Reliance alone pulls down the bulls later. The broader market remained weak. Market breadth was also negative though traded volume and the turnover climbed. FIIs too have turned net sellers of late though yesterday's provisional figure shows they were net buyers. Coming to today's session, we expect a lower opening on the back of the overnight fall on Wall Street and weak Asian markets. Intra-day gyrations is something one will have to get used to.

Global markets are witnessing lot of choppiness over the past few days owing to renewed worries over inflation and its fallout on interest rates. In India too, similar concerns are still weighing on the markets. The stronger than expected IIP data for April and FY07 could heighten the pressure on inflation and hence interest rates in the next few weeks or months. The market will not take kindly to another monetary tightening measure from the RBI.

The monsoon factor is yet to play out fully. It may have some bearing on the economy in the current fiscal though its contribution to the GDP has shrunk considerably. A Bank of Japan meeting this week followed by a Fed meeting on June 28th will provide enough ammunition to the bulls and bears to keep markets choppy.

In the next few days, we will have some idea of India Inc's health by way of the advance tax numbers. Q1 results, especially that of IT companies, will play a key role in deciding the next course of action for the bulls.

FIIs were net buyers of Rs3.35bn (provisional) in the cash segment yesterday while the local institutions offloaded stocks worth Rs808.6mn. In the F&O segment, foreign funds were net sellers to the tune of Rs2.57bn. On Monday, FIIs were net sellers at Rs546mn in the cash segment. Mutual Funds pulled out Rs249mn from the cash segment on the same day.

Time Technoplast Ltd. will list today on NSE & BSE. The premium being talked about on listing is in a range of Rs100-100 per share. The company had fixed a price band of Rs290-315 per share and the issue price was set at Rs315 per share.

US stocks slid after bond yields touched a five-year high. AT&T., JPMorgan Chase and Wal-Mart led the Standard & Poor's 500 Index and Dow Jones Industrial Average to their first drop in three days.

The 10-year Treasury note extended a five-week slump, pushing the yield to as high as 5.27%, on expectations that central banks from China to the UK will raise interest rates to curb inflation.

The S&P 500 slid 16.12 points, or 1.1%, to 1493. The Dow Jones Industrial Average plunged 129.95 points, or 1%, to 13,295.01. The Nasdaq Composite Index lost 22.38 points, or 0.9%, to 2549.77.

After the close, the 10-year Treasury note went as high as 5.3%, the highest in five years. Bond prices have been tumbling, and yields rising, in the last few days on worries that rising price pressures coupled with a possible pick up in the economy will force the Fed to raise its target rate.

In currency trading, the dollar rose versus the euro and the yen. COMEX gold for August delivery fell $5.90 to settle at $653.10 an ounce. US light crude oil for July delivery fell 62 cents to settle at $65.35 a barrel on the New York Mercantile Exchange.

European stocks weakened. The pan-European Dow Jones Stoxx 600 index declined 0.5% to 387.11. The UK's FTSE 100 closed down 0.7% at 6,520.40, the German DAX Xetra 30 dropped 0.4% to 7,678.26 and the French CAC-40 lost 0.7% at 5,898.16.

Stocks in Brazil and Mexico fell, as investors weighed concerns about the impact of rising US Treasury bond yields and possible interest rate increases in other emerging markets. In Brazil, the Bovespa index fell 980 points, or 1.9%, to 51,797.14. IPC index of 35 most-traded stocks fell or 225 points, or 0.7%, to 31,608.59.

Asian stocks fell after US bond yields climbed to a five-year high. The Morgan Stanley Capital International Asia-Pacific Index dropped for the fourth time in five days after yields on 10-year US Treasury notes rose to the highest in five years. Toyota and Samsung Electronics led declines among companies that rely on global sales.

The MSCI index slid 0.7% to 149.66 as of 10:10 a.m. in Tokyo, poised for the lowest close since May 30. BHP Billiton led mining shares lower after metals prices retreated. Benchmarks declined around the region, with Japan's Nikkei 225 Stock Average dropping 0.8% to 17,623.78.

A measure of six metals traded on the London Metal Exchange dropped 2.4% yesterday. Copper slipped 2.5%, zinc fell 1.1% and nickel slumped 5.8%.

Bulls made a come back in the final hour of the trading session as heavy weights like Tata Steel, ONGC, ACC, Reliance Industries and ICICI Bank lifted the benchmark Sensex 14100mark after hitting the day’s low of 13946.99. The Oil & Gas index led from the front and others like Banking and Metal index followed suit. Cement stocks gained ground on back of fresh buying however, Auto and Technology socks were the major laggards. Finally, the 30-share Sensex added 47 points to close at 14130. NSE-50 Nifty was up by 9 points to close at 4155.

Tata Steel surged by over 4% to Rs603 after Corus announced that they would increases Wire Rod prices by atleast 7%. The scrip touched intra-day high of Rs608 and a low of Rs580 and recorded volumes of over 55,00,000 shares on NSE.

L&T marginally gained by 0.5% to Rs1906 after the company announced that they have secures Rs1.14bn order from SAIL and Rs8.77bn order from ONGC. The scrip touched intra-day high of Rs1929 and a low of Rs1881 and recorded volumes of over 9,00,000 shares on NSE.

IKF Technology was frozen at 5% upper circuit to Rs8.31 after the company announced that they would mull bonus issue on 23rd June. The scrip touched intra-day high of Rs8.31 and a low of Rs7.99 and recorded volumes of over 55,00,000 shares on NSE.

Rajesh Exports edged lower by 0.4% to Rs515. The company announced that they would develop 5 properties from its Land bank. The scrip touched intra-day high of Rs529 and a low of Rs508 and recorded volumes of over 2,00,000 shares on NSE.

Diamond Cables was down 0.2% to Rs164. The company announced that they have secured order worth Rs750mn. The scrip touched intra-day high of Rs166 and a low of Rs150 and recorded volumes of over 1,00,000 shares on NSE.

Cement stocks witnessed fresh buying after being on the side lines in previous weeks. ACC advanced by 5.6% to Rs805, Gujarat Ambuja gained by 0.7% to Rs110, Grasim was up by 1.5% to Rs2388 and India Cement surged 3.7% to Rs173.

Banking stocks slipped lower on back of selling pressure. Frontline stock like SBI slipped by 0.6% to Rs1332, HDFC Bank was down by 1% to Rs1088, Union bank, Bank of India and Bank of Baroda were the major losers among the Mid-Cap stocks. However ICICI Bank gained 2% to Rs919.

Metal stocks also reversed its losses led by gains in heavy weight Tata Steel as the scrip surged by over 4% to Rs603, SAIL advanced by 3% to Rs130 and Sterlite Industries gained 1% to Rs704. However, National Aluminum declined 1.5% to Rs253.

Technology stocks also slipped as Indian rupee again strengthened against the US Dollar. Satyam Computer has dropped by 3.88% to Rs478, Wipro was down by 0.8% to Rs538, Polaris declined by 2.3% to Rs158 and HCL Tech slipped 1.8% to Rs339.

Results Today:
Asian hotels, EIH Associated Hotels, Rajshree Sugars and Wyeth.

Insider Trades:
Shree Renuka Sugars Limited: Dr. Bantval Prabhakara Baliga, Director has purchased from open market 10000 equity shares of Shree Renuka Sugars Limited on 5th June 2007.

Prime Securities Limited: N Jayakumar, President has purchased from open market 50000 equity shares of Prime Securities Limited on 6th june, 2007.

Aurobindo Pharma Ltd: Standard Chartered Private Equity (Mauritius) Ltd. Has sold in open market 1334630 equity shares of Aurobindo Pharma Ltd from 15th May to 4th June, 2007.

Lower Circuit:
Ruby Mills, Tripex Overseas, SREI Infrastructure, Mercator Lines, Marksons and BF Utilities.

Upper Circuit:
Shree Ashtavinyak, UTV, Mascon Global, XL Telecom, IKF Technology, Yashraj Securities, Godrej Industries
and Shaw Wallace.

Delivery Delight (Rising Price & Rising Delivery):
Amtek Auto, Apollo Hospitals, Bajaj Hindustan, Biocon, Federal Bank, Gujarat Ambuja Cements, HCL Infosystems, Hexaware, HLL, HPCL, ICICI Bank, Jaiprakash Associates, Reliance Industries, Tata Chemicals, TISCO and UTI Bank.

Abnormal Delivery:
Tata Steel, Punjab Tractors, ICICI Bank, Dabur India, GlaxoSmithKline Pharma, Gujarat Heavy Chemicals, Kotak Mahindra Bank, Finolex Cables and Aventis Pharma.

News Headlines:

FM says India intends to reduce demand in Real Estate, Housing

Corus increases Wire Rod prices by at least 7%

IKF Technologies to mull bonus issue on 23rd June

Gulf Cement signs accord with Simplex for Qatar plant

Rajesh Exports to develop 5 properties from its Land bank

Diamond Cables gets order worth Rs750mn

Cadila gets tentative approval for Amlodipine Besylate

L&T gets Rs8.77bn order from ONGC

Praj Industries forms a JV with Aker Kvaerner Netherlands

Anagram - Daily Call - June 13 2007

Anagram - Daily Call - June 13 2007

Citigroup - India Technicals

Citigroup in their report on India Technicals,

Nifty — The index exhibited high intra-day volatility. It opened on a flat note, traded sideways in the morning session, dipped down towards 4100 in the afternoon session, and saw a rally towards the close. The index ended the day up 9 points.

10&20dma crossover — The moving average crossover in the daily chart is negative
(i.e. the 10dma has crossed the 20dma from above); 10dma=4222 and 20dma=4231. Intra-day pullback will likely face stiff resistance around the averages. [dma = daily simple moving average]

Support — The index has support around 4126 (intra-day it whipsawed 4126 but closed above it) and 4072 (low of 14 May 07). Intra-day volatility can be expected if Nifty breaks the 4126 level.

Conclusion — Intra-day pullback will face resistance around 4200 levels.

Sharekhan Daring Derivatives for June 13, 2007

Sharekhan Daring Derivatives for June 13, 2007

Textile Fact Sheet

Textile Fact Sheet

India Currency Report

India Currency Report

Equities Presentation - India Long Term Perspective

Equities Presentation - India Long Term Perspective