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Thursday, June 21, 2007

Religare - Cinemax

Religare - Cinemax

Eveninger - June 21 2007

Eveninger - June 21 2007

Motilal Oswal - Hindustan Constructions

Motilal Oswal - Hindustan Constructions

India top retail market among emerging nations

India and Russia continue to occupy the top two slots of the Global Retail
Development Index (GDRI) in 2007 as they have for the last three years.

China vaulted past Vietnam and Ukraine to be placed third in this year’s index, largely on the strength of continued growth in consumer spending, and retailers moving into smaller markets.

Modern retail formats grew between 25 and 30% in India and 13% in both China and Russia last year.

These are among the findings of the sixth annual Global Retail Development Index (GRDI), a study of retail investment attractiveness among 30 emerging markets conducted by management consulting firm A T Kearney.

“India being at the top of the GRDI validates the level of activity and enthusiasm we have seen in the marketplace. We anticipate another year of major investments and new retail concepts changing the rapidly evolving organised retail landscape in India, not just in the metros, but also deeper penetration in tier 2 and 3 cities,” Hemant Kalbag, principal (consumer industries and retail practice), AT Kearney India said.

The study also found that as large cities in China and Russia reach retail saturation, retailers are entering countries through second and third-tier cities where consumers are ready to embrace Western-style retail concepts and products, thanks to the influence of television, movies and the Internet. Until recently, such rapid growth was confined to the largest cities in
each country, the report says.

In China, foreign retailers such as Wal-Mart and Tesco, and Hong Kong-based retailers are branching into smaller mainland cities, such as Yuxi, Weifan, Nanchang and Wuhu.

In Russia, Carrefour recently announced it's entry into the country via
tier-two cities.

SECTOR WATCH: Entertainment

Q4 Review: The entertainment industry (visual media, content providers and film distributors) has posted 30 per cent growth in revenues and 123 per cent rise in profit in the March 2007 quarter.

Zee Entertainment was not considered for the study as its quarter-to-quarter financials were not comparable, while Sun TV is yet to announce its fourth quarter results. Balaji Telefilms witnessed 37.25 per cent growth in net profit on the back of 13.23 per cent rise in income from operations.

The profit growth came as the hourly realisations from commissioned programming increased from Rs 0.22 crore to Rs 0.27 crore. Adlabs reported 151 per cent growth in the operating income owing to the merger of Entertainment One India and the digital business of Mukta Digital Exhibition and demerger of the radio business.

Operating margins rose to 47.3 per cent from 24.2 per cent, while the profit growth was restricted to 73 per cent on account of high depreciation.

Trigger: A changing distribution landscape, emergence of new media (internet and mobile) and convergence of platforms triggered a substantial growth in the entertainment segment.

Outlook: Analysts expect investments of Rs 24,000-28,000 crore on distribution platforms, particularly in digital cable, DTH, IPTV, radio, internet, mobile, digital cinema and multiplexes.

The television industry in India loses around Rs 12,000 crore in pay revenues annually to leakages and piracy in the distribution chain, according to SSKI estimates. The under-reporting of C&S subscribers is as high as 85 per cent, as analog cables dominate television distribution.

While the government has initiated the process of making CAS implementation mandatory, the DTH and IPTV penetration would be driven by big-ticket investments of Rs 16,000 crore from players such as Tata Sky, Reliance ADAG, Dish TV, Bharti Airtel, and MTNL.

Digitisation will ensure 100 per cent declaration compared with 16-20 per cent now. Analysts expect advertising revenues to grow by 15 per cent and pay revenues to increase by 30 per cent in four years.


Q4 Review: The print and television media have done well in the quarter ended March 2007, with net profits rising by 40 per cent on a revenue growth of 32.5 per cent. The growth in profits can be attributed to an increase in advertisement revenues and decline in the newsprint costs.

The revenues of HT Media grew by 23.6 per cent, driven by a 32 per cent growth in advertising revenues due to the launch of new supplements and editions. NDTV reported a revenue growth of 16.4 per cent, after adjusting its net loss of Rs 17 lakh, resulting from new initiatives.

Trigger: Advertising growth in India is both cyclical and structural, with increased contribution from industry segments such as retail, real estate, telecom, automobiles and financial services.

According to analysts, media companies are strategically poised to benefit from buoyant ad revenues and softening newsprint prices. The newsprint rates have corrected by 20 per cent from the yearly peak.

Outlook: Deccan Chronicle has targeted sales revenues of Rs 750-800 crore for FY ‘08, a year-on-year rise of about 36-45 per cent. It has increased the advertisement charges by 30 per cent across all sections and editions, effective from May 2007. HT Media expects pressure on margins owing to its new initiatives such as ‘Mint’ and ‘Fever 104’.

The increasing literacy, emergence of local-centric businesses and broadcast clutter are driving advertising revenues for the print media. The growth has been further triggered by fund infusion of $675 million and entry of global brands such as the Wall Street Journal, Financial Times and so on.

The Indian advertising industry is likely to grow at a CAGR of 15 per cent in the next four years and the print media will share about 45 per cent of the incremental growth.

According to an analyst at Man Financials, the media firms are venturing into new advertisement verticals such as radio, out-of-home (OOH), event management and TV to benefit from the existing client relationships.

Reliance Communications launches mobile radio service

Anil Ambani group company, Reliance Communications on 21 June launched mobile radio service on its phones.

The service would be available to both post-paid and pre-paid subscribers of Reliance Mobile, Reliance Hello and post-paid Reliance landline subscribers, a company release said here.

All Reliance mobile customers, regardless of the type of mobile phone, can now avail mobile radio service across the country.Customers can access the service by dialling 51234777.

The service would be available in eight Indian languages including Tamil, Gujarati, Kannada, Hindi and Malayalam, amongst others.

Commenting on the launch, company’s President, Applications, Solutions and Content Group, Mahesh Prasad said: “with launch of the mobile radio service, the fundamental barrier between a mobile and a radio has been bridged. Effectively, every phone becomes an ‘FM-like’ radio phone for those who have missed out on buying and FM-enabled phone.”

Prasad further said the company would soon provide access to regional content similar to various radio stations that were popular across the country.

Reliance Mobile Radio has a daily schedule of categories such as devotional and latest hits. Customers subscribing to this service will have the option of accessing complete songs of one’s choice and will also have the flexibility of skip or replay.

Customers have the option to subscribe to Mobile radio at Rs30 per month and then listen to radio at Re1 per minute by dialling 51234777 or listen to mobile radio at Rs3 per minute (without subscription) by dialling 51234778.

Rupee up further vs dollar at 40.71/72

The rupee on 21 June appreciated further against the greenback and ended at 40.71/72 on the back of a firm equity market on expectations of robust capital inflows.
In quiet and rangebound trade at the Interbank Foreign Exchange (Forex) market, the Indian unit opened weak at 40.80/82 a dollar against the previous close of 40.7450/7550 following dollar purchases by oil refining companies.

Global crude oil remained high near $69 a barrel in Asian trade on 21 June.
Later, it recovered and rallied smartly to touch a high of 40.70 before ending the day at 40.71/72 a dollar, 3.5 paise higher than the previous close.

Attributing a weak start to some pressure on the rupee due to dollar purchases by oil companies, forex dealers said the currency, however, drew support from comfortable capital inflows into equity markets.

The country is expected to get substantial portfolio inflows in the month after the mega IPO launched by real estate major DLF Ltd, which is followed by a public issue of $2 billion by the country’s largest private sector lender ICICI Bank.

The benchmark Sensex today gained 87 points at close, continuing its upward movement for the fourth day in a row.

In New York yesterday, the dollar was down against other major currencies, partly helping the rupee’s surge.

SEBI - Short-selling by institutions to be allowed soon

Capital market regulator, the Securities & Exchanges Board of India (Sebi) said on 21 June it will soon issue guidelines on short-selling that will allow institutional investors to sell stocks without owning them.

“Individuals are allowed to shortsell, we are extending it to financial institutions, including mutual funds, soon,” Sebi Chairman M Damodaran told reporters on the sidelines of the Financial Planning Congress here.

The guidelines are being finalised and will be issued soon, he said without specifying the date.
The market watchdog at its board meeting held on March 22 had allowed short-selling by institutional investors, both domestic and foreign. However, the relevant guidelines will come out shortly.

The decision on short-selling, followed the announcement by Finance Minister P Chidambaram in the Budget on February 28. The Sebi-appointed secondary Market Advisory Committee, had also recommended short-selling by institutional investors in October 2005.

It is believed that initially short-selling would be permitted only on those stocks in which derivative products are available.

The introduction of short-selling is likely to benefit the market in more ways than one. Apart from improving efficiency and liquidity, it will also help increase participation in a falling market since institutions will try to take advantage of such a market by going short, thus improving the market depth.

Volatility rises as F&O expiry nears

Key equity indices closed firm Thursday, after a fairly volatile session. Across sectors, capital goods were sharply higher while technology declined.
Asian indices helped Indian equities open up today, and firmed up on widespread buying. But the four-day rally attracted profit booking. The volatility heightened as shorts were unwound ahead of the Nifty June series expiry.
Bombay Stock Exchange’s 30-share Sensex ended 0.61 per cent or 87 points higher at 14499. The index made an intra-day high of 14526 and low of 14406.
National Stock Exchange’s 50-stock Nifty closed up 0.44 per cent or 19 points at 4267. Intra-day, it rose to a high of 4275 and low of 4220.
On BSE, 1437 shares advanced while 1134 declined, 82 remained unchanged.
“The trend in the market is still positive. The gyrations seen are natural, and as we come closer to the June expiry, it will increase,” said Shankar Char, head dealer at Centrum Capital.
“When the Nifty neared 4200, its support, fresh buying emerged. I believe the Nifty could touch 4375 shortly,” Char said.
Reliance Energy, up 4 per cent, was the biggest gainer on the Sensex. Larsen & Toubro (3.88 per cent), BHEL (3.64 per cent), Hindalco Industries (2.74 per cent), Reliance Communications (2.22 per cent) and HDFC (2 per cent) were the other gainers.
Hero Honda (1.08 per cent), Satyam Computer (1.06 per cent), Maruti Udyog (0.9 per cent), Bharti Airtel (0.78 per cent), Grasim Industries (0.67 per cent) were the biggest losers.
Technology stocks underperformed the broad market. The BSE IT Index was marginally lower at 4887. Patni Computer Systems slipped 2.34 per cent to Rs 514, Satyam was down 1.06 per cent at Rs 466.80 but Infosys Technologies ended 0.12 per cent higher at Rs 1,956 and Financial Technologies surged 4.47 per cent to Rs 2,807.
Sugar stocks turned sweet on the government announcement to increase the buffer stock. Shree Renuka Sugar rose 1.7 per cent to Rs 616, Bajaj Hindustan ended 1 per cent higher at Rs 165, Balrampur Chini was up 2 per cent to Rs 69.50.
Larsen & Toubro ended 3.88 per cent higher at Rs 2,106 after it bagged a $94.95-million contract for construction of two ships from BigLift Shipping of Netherlands.
Neyveli Lignite was up 1.63 per cent at Rs 62 after the government announced raising the royalty to states on coal and lignite by 14 per cent.
Hindustan Petroleum Corporation shares ended nearly 4 per cent higher at Rs 273, after the Cabinet Committee on Economic Affairs approved the proposal allowing steel baron Lakshmi Mittal to pick up 49 per cent stake in the state-run oil refiner's Bhatinda unit.

Market Close: Third straight Gains.. After a Roller coaster ride..

Yet another day of Yoyo movement while the Indices ended in Green. Market began the day on a buoyant note despite periodic attempts of profit booking in index heavyweights. Global cues also supported the day. Capital goods, Power and Oil marketing companies marched ahead with LNT, REL and BHEL supporting the rally. In the mid session some gains were given up on account of selling pressure in Oil & Gas and IT stocks while Heavywieghts like REL, BHEL helped Indices to end in green and market also saw short covering during the final hours of trade. Smallcap index outperformed the frontline index. All Asian indices closed in green which supported the uptrend, while Europe is trading in red zone.

Sensex ended up by 87 points at 14499.24. It was helped up by gains in Rel Energy (560.4,+4 percent), L & T (2106.6001,+4 percent), BHEL (1481.7,+4 percent), Hindalco (166.85,+3 percent) and RCVL (517.15,+2 percent). Restricting the gains were Hero Honda (661.5,-1 percent), Satyam (466.8,-1 percent), Maruti (761.4,-1 percent), Bharti Tele (818.2,-1 percent) and ITC (154.4,0 percent).

Larsen & Toubro Ltd (L&T) announced that it has won another key contract for construction of two ships valued at over Rs 320 Cr (US$ 94.95 mn) from BigLift Shipping BV of the Netherlands a part of the Spliethoff Group. The order further establishes the entry of the Company's venture into shipbuilding last year. The vessels will be built at the existing shipyard that is a part of the Company's state-of-the-art engineering complex at Hazira, Surat. BigLift Shipping of Netherlands is a shipping Company that specializes in the worldwide transportation of heavy lifts. Production of the ships is scheduled to commence in June 2008 and the vessels shall be delivered by March 2010. The vessels will be able to carry all kinds if dry cargo as well as project cargoes and heavy lift in the most efficient manner. The vessels have a length of 154.8 m beam 26.5 m & 18680 t deadweight and shall be delivered in November 2009 and March 2010. The Company has entered this Ship building business in recent times and the compony received a huge order. The stock rallied over 4% for the day.

Engineering stocks traded mixed. Markets reported that Bharat Heavy Electrical Ltd (BHEL) intends to shore up annual capacity to manufacture power generation equipment. At present the company is geared to make power equipment for setting up plants with total generation capacity of 7000 MW per annum. BHEL proposes to supply equipment to help set up power stations with a combined generation capacity of 10500 MW. This will enable the company to supply relevant power equipment for setting up an additional 52,500 MW in the next five years. The stock ralled up by 4.2% on the outcome of the news.

Technically Speaking: It was a fairly choppy session but pulled back at the end trades. Sensex touched intraday high of 14526 levels and low of 14407 levels. Sensex has made an upward breakout and clearly headed uptrend with a gap support of 14440 level. The next Resistance can be seen at 14590 levels. Market turnover was very good at Rs 5277 Cr. Overall breadth was in favor of Advances, where the Advances were 1443 against the Declines of 1156. Expect the market to continue the uptrend momentum.

Market ends buoyant

The market seemed to be following the record-setting run of Asian indices in the morning trades but came off its high as investors booked profits towards the close. The Sensex resumed on a positive note, taking cues from the firm Asian markets. The sustained buying in capital goods and banking stocks saw the Sensex touch the early high of 14493. The market remained buoyant thereafter but profit booking in index pivotal stocks dragged the Sensex to negative territory by the afternoon and it touched the day's low of 14407. However, the Sensex recovered on late buying in heavyweights, capital and consumer durables stocks, and touched the intra-day high of 14526. The Sensex finally ended the session with the gains of 87 points at 14499 and the Nifty finished the session at 4267, up19 points.

The breadth of the market was positive. Of the 2,653 stocks that traded on the BSE, 1,437 stocks advanced, 1,134 stocks declined and 82 stocks ended unchanged. Among the sectoral indices, the BSE CG notched up gains of 2.06% at 11,736 followed by the BSE CD index (up 1.19% at 4048), the BSE Metal index (up 0.89% at 10,820) and the BSE PSU index (up 0.79% at 6729). However, the BSE IT index closed in the red.

The heavyweights witnessed strong buying interest. Reliance Energy soared 4.16% at Rs560, L&T rose 3.88% at Rs2,107, BHEL was up 3.64% at Rs1,481, Hindalco shot up by 2.74% at Rs167, Reliance Communication jumped 2.22% at Rs517, HDFC added 2.14% at Rs1,849, SBI gained 1.43% at Rs1,446, Ranbaxy moved up by 1.18% at Rs356 and Gujarat Ambuja Cement was up 1.02% at Rs119.

Capital goods stocks notched up significant gains during the day. HBL Power Systems jumped 12.46% at Rs297, South Asia Marine Engineering scaled up 9.98% at Rs221, Honeywel Auto rose 7.53% at Rs1,842, Gayatri Projects jumped 6.21% at Rs298, Disa India added 5% at Rs1,503, Asian Electric gained 5% at Rs805 and Reliance Industrial Infrastructure was up 5% at Rs483.

Over 89.56 lakh IFCI shares changed hands on the BSE followed by GV Films (87.54 crore shares), IKF Technologies (75.81 lakh shares), IDBI (69.54 lakh shares) and Time Technologies (56.13 lakh shares).

Value-wise Time Technologies registered a turnover of Rs329 crore on the BSE followed by Divi's Lab (Rs222 crore), L&T (Rs145 crore), SBI (Rs116 crore) and Educomp (Rs108 crore).

Hat trick of gains for Sensex

The market settled with modest gains as buying continued in index pivotals. It rose for the third straight trading session today. All the sectoral indices settled with gains, except the BSE IT index. The BSE Mid-Cap index settled at all time high.

Nevertheless, intense volatility was hallmark of today’s session. The market was firm till the early afternoon. It saw sharp swings in the second half of the trading session. The BSE 30-share Sensex struck intra-day low as well as intra-day high of the day during last one hour or so of trade.

Volatility is expected to stay on over the next few days ahead of the expiry of the June 2007 derivatives contracts next Thursday, 28 June 2007.

Shares from the capital goods sector were in demand today.

The Sensex rose 87.29 points or 0.61% at 14,499.24. It opened higher at 14,415.56 and slipped to touch a low of 14,406.67 at 14:21 IST, which was a fall of 5.28 points for the day. However, it recovered sharply from that low to strike a two-week high of 14,526.44 by 15:16 IST, which was a gain of 114.49 points for the day.

From 14,080.14 on 18 June 2007, the Sensex gained 419 points three trading sessions at current 14,499.24.

The S&P CNX Nifty gained 18.75 points or 0.44% at 4,267.40. The Nifty June 2007 futures settled at 4256, a discount of 11.40 points as compared to spot closing.

The turnover on BSE crossed Rs 5000 crore mark for the second straight day today. Turnover surged to Rs 5,277 crore today compared to Rs 5,085 crore on Wednesday, 20 June 2007. It surged in the last one hour of trade today.

NSE's futures & options segment clocked a turnover of Rs 41682.48 crore compared to Wednesday's Rs 41,733.11 crore

The market breadth was positive on BSE with 1,443 shares advancing as compared to 1,156 that declined, while 92 remained unchanged.

The BSE Mid-Cap index rose 34 points or 0.53% to 6,373.76 after striking all time high of 6,397.15. Its previous all time high was 6341.45 hit on 20 June 2007.

The BSE Small-Cap index advanced 76 points or 1.02% to 7,496.48.

Among the Sensex pack, 16 gained, while the remaining were trading in the negative territory.

Reliance Energy spurted 4.67% to Rs 563.10, on 2.99 lakh shares. It was the top gainer from the Sensex pack. The company was one of the five qualified bidders who had submitted bids for the 4,000-mega watt Sasan ultra mega power project.

The BSE capital goods index soared to an all-time high of 11,835.98, led by heavyweights L&T and Bhel. It settled 2.06% higher at 11,736.76, and was the top performer among the sectoral indices on BSE.

Engineering and construction major L&T was up 4.24% to Rs 2,114 on 6.89 lakh shares. L&T spurted to an all-time high of Rs 2,149 today. L&T said during trading hours today, 21 June 2007, it has signed a $95-million shipbuilding contract with Netherland's BigLift.

On Tuesday, 19 June 2007, L&T and Eastern Contracting LLC (Eastern) had jointly bagged a Rs 610-crore order from Victory Heights Golf Residential and Development, to build a residential property in Dubai Sports City. The project is expected to be completed in 660 days.

State-run engineering major Bharat Heavy Electrical (Bhel) spurted 3.86% to Rs 1,484.90, on 2.15 lakh shares. It rose to an all-time high of Rs 1,491 today. Bhel had bagged a Rs 139-crore contract from NTPC for supplying and commissioning of 27 transformers on 19 June 2007.

State Bank of India (SBI) saw high volatility in the day. It surged 2.93% to Rs 1,467 after striking a low of Rs 1,400 earlier during the day. SBI is set to raise $225 million from the overseas market this year by issuing perpetual bonds. The overseas issue opened on Monday, 18 June 2007, and the bank is expected to price the bonds this week. It plans to raise a total of Rs 15,000 crore this year in the form of equity (tier-I) and debt (tier-II).

The BSE Bankex was up 0.48% at 7,827.90. Other shares from the banking pack were mixed. Canara Bank (down 5.11% to Rs 261), Bank of Baroda (down 1.61% to Rs 266), and Union Bank (down 3.50% to Rs 128.35), slipped while Bank of India (up 2.42% to Rs 218), Federal Bank (up 1.67% to Rs 298), Kotak Mahindra Bank (up 4.96% to Rs 633), gained.

Aluminium and copper major Hindalco Industries advanced 2.74% to Rs 166.85 on high volumes of 23.48 lakh shares. A block deal of 5 lakh shares was struck on the counter on BSE at Rs 163 per share by 12:29 IST. There is market speculation that promoters are hiking their stake from open market.

Housing finance major HDFC moved up 2.20% to Rs 1,850. HDFC’s chairman Deepak Parekh had recently indicated that home loans may get a little more expensive after the monsoon. A possible tightening by the central bank could push up rates.

Pharma major Ranbaxy Laboratories rose 1.32% to Rs 356.50. The drug maker said it had received an approval to manufacture and sell Amlodipine Besylate in the US. The company made the announcement after market hours on Wednesday, 20 June 2007. Amlodipine Besylate tablets are indicated for the treatment of hypertension

Index heavyweight Reliance Industries (RIL) was down 0.36% to Rs 1,726.90, on 5.63 lakh shares. As per reports, global oil giants including Shell, Exxon and Chevron are eying a stake in Reliance Industries’ overseas oil & gas assets. RIL recently hived off these assets into a separate company, Reliance Exploration and Production DMCC.

Tata Motors was up 0.43% to Rs 689.85 after the vehicle maker said it would raise Rs 1836 crore in the international markets. The company made the announcement after market hours on Wednesday, 20 June 2007. The funds would be utilised to meet capital and product development expenses in projects involving the growth of both its commercial vehicle and passenger car business units apart from other unspecified corporate purposes.

IT stocks slipped on lack of fresh buying. The BSE IT Index was down marginally by 0.01% to 4,886.85. It was the only sectoral index closing in the red. Satyam Computers lost 1.27% to Rs 465.80 on 3.04 lakh shares. It was the top loser from the Sensex pack.

Other IT pivotals did not see much movement. Infosys (up 0.05% to Rs 1955), Wipro (down up 0.91% to Rs 526.50) edged higher, while TCS slipped 0.05% to Rs 1145.25.

India's rupee slipped slightly today, 21 June 2007, on speculation refiners will use the currency's recent gains to buy dollars to reduce costs arising from higher crude oil prices. The rupee fell to 40.76 per dollar from 40.75 on 20 June 2007. It has gained 8% this year. A stronger rupee impacts the profit margins of IT firms which derive a lion's share of their revenue from exports

Auto counters dropped. Hero Honda Motors lost 1.13% to Rs 661.15, while Maruti Udyog declined 1.12% to Rs 760. The BSE Auto Index rose 0.7% to 4,796.07.

The BSE Metal Index gained 0.9% to 10,820.06. Sterlite Industries India lost 2.23% to Rs 591.10. Its American depository shares had made a strong debut on the New York Stock Exchange on Tuesday, 19 June 2007, ending 9.4% higher than the offer price of $13.44.

Hindustan Zinc galloped 4.21% Rs 748.55. The stocks surged for the second straight day on reports that government will offload residual 29.5% stake in the zinc major to reap Rs 8381 crore from stake sale.

Tata Steel lost 0.35% to Rs 605.95 whereas Sail rose marginally by 0.04% to Rs 135.10.

State-run oil exploration major Oil & Natural Gas Corporation (ONGC) was down 0.51% to Rs 912. As per reports, the Directorate General of Hydrocarbons has sharply cut the estimates of ONGC's gas discovery in a block in Krishna-Godavari basin. This may come has a setback to ONGC which was betting heavily on discovery in this particular block for its future growth.

ICICI Bank was down 0.29% to Rs 945.10. The follow-on public offer (FPO) of ICICI Bank was subscribed 5.13 times by 16:00 IST on Thursday, 21 June 2007. The issue closes on Friday, 22 June 2007.

Retail bidders would be allotted shares at a discount of Rs 50 per share to the issue price determined by the book-building process, in the ICICI Bank FPO. The issue size is Rs 8,750 crore. In addition, there is a green-shoe option under which the bank may allocate additional equity shares up to Rs 1,312.5 crore. The issue including the green-shoe option aggregates Rs 10,062.5 crore.

Banco Products India soared 10% to Rs 297.90 after saying its board would meet on 28 June 2007 to consider recommendation of bonus issue. The company made the announcement after market hours on Wednesday, 20 June 2007. The company has latest equity share capital of Rs 6.76 crore while its latest book value is Rs 136.61 per share. It has total reserves of Rs 85.59 crore. The company had last declared 1:1 bonus in 1999.

Gillette India was down 0.70% to Rs 907 after striking a high of Rs 950, in early trade. The shaving products maker said after market hours on Wednesday, 20 June 2007, it sold a piece of property at Gurgaon, India, for Rs 72.75 crore. The company had received the final payment on 19 June 2007. Further, the company also stated that, the book value of the said immovable property was Rs 30.54 crore.

Pipe maker PSL had jumped 10.61% to Rs 304 on reports that it had bagged Rs 380-crore orders from Sharjah and Malaysia.

Hindustan Petroleum Corporation (HPCL) surged 4.54% to Rs 274.90 after the Union Cabinet on Thursday, 21 June 2007, allowed Lakshmi Mittal to pick up 49% stake in HPCL's Bhatinda, Punjab, refinery. Mittal Investments plans to acquire the stake in the 9 million tonne per year refinery for Rs 3365 crore through its 100% arm, Mittal Energy Investments Pte, incorporated in Singapore.

Britannia Industries rose 3.16% to Rs 1518 on reports of possible settlement of dispute between Groupe Danone and the Wadia group. The stock touched a high of Rs 1630 today. As per the reports today the long drawn Danone-Wadia disaga may soon draw to an amicable close. The French food company Groupe Danone is considering a peace formula that comprises a voluntary exit from Britannia Industries and dissolution of the Wadia-BSN joint venture. Wadia-BSN, was set up by the Wadia group and Danone in 1997 to jointly explore business opportunities outside Britannia.

Jetking Infotrain slumped 4.93% to Rs 567.45, even as its board announced a liberal 1:1 bonus issue in a meeting held on Wednesday, 20 June 2007. This announcement was made before market hours on 21 June 2007.

Godfrey Phillips India lost 0.60% to Rs 1463 after its net profit surged 472.98% to Rs 18.45 crore in Q4 March 2007 as against Rs 3.22 crore in Q4 March 2006. Sales were up 38.04% to Rs 232.51 crore ( Rs 168.44 crore). Net profit jumped 46.52% to Rs 88.10 crore in the year ended March 2007 as against Rs 60.13 crore in FY 2006. Sales moved up 15.29% to Rs 772.54 crore (Rs 670.11 crore). The results were announced after the market hours on Wednesday, 20 June 2007.

Hindustan Organic Chemicals was locked at 5% upper limit of Rs 43.85 on reporting a whopping 16,745% rise in net profit in Q4 March 2007. HOCL’s net profit surged 16,745% to Rs 33.69 crore in Q4 March 2007 as against Rs 0.20 crore in Q4 March 2006. Sales rose 34.44% to Rs 158.73 crore in Q4 March 2007 as against Rs 118.07 crore in Q4 March 2006. The company reported a net profit of Rs 17.04 crore in the year ended March 2007 as against net loss of Rs 56.61 crore in FY 2006. Sales were up 31.06% to Rs 506.07 crore in FY 2007 as against Rs 386.14 crore in FY 2006. The results were announced after market hours on Wednesday, 20 June 2007.

Most of the Asian markets settled with gains. Hong Kong's Hang Seng (up 1.25% at 21,954.67), Japan's Nikkei (up 0.16% at 18,240.30), Taiwan's Taiwan Weighted (up 1.10% at 8,851.99) and South Korea's Seoul Composite (up 0.59% at 1,794.24) all settled higher.

Shanghai Composite rose 1.18% to 4,230.82. The Shanghai Composite Index had hit a record high of 4,335.96 on 29 May 2007.

In contrast, all the European markets were trading weak.

A surge in treasury yields rattled Wall Street on Wednesday 20 June 2007, forcing stocks to give up early gains. The Dow Jones slipped 146 points, or 1.07%, to 13,489.42, after bobbing in and out of positive and negative territory earlier in the day. Broader stock indicators also tumbled. The Standard & Poor's 500 index declined 20.86 points, or 1.36%, to 1,512.84, and the Nasdaq Composite index fell 26.80 points, or 1.02%, to 2,599.96.

Oil prices nudged higher on Thursday, 21 June 2007, after declining 2% on Wednesday, 20 June 2007, on data showing a surge in US crude stocks, with dealers refocusing on a general strike in Nigeria and unusually low US refinery operations. London benchmark Brent crude rose 27 cents to $70.69 a barrel by. Prices had touched a 10-month high of $72.25 on Monday, 18 June 2007.

PSL , UTV Software

PSL , UTV Software

Bias may remain cautious

The fall in the US markets coupled with subdued Asian markets in morning trades and dwindling FII inflows may weigh on local indices in early trades and thereafter could exhibit volatility during the intra-day trades. However, the pullbacks in the past few sessions may add to the market advantage and help the sentiment turn positive. Key local indices, the Nifty could test higher levels around 4250-4260 range in the short term and has a key support at 4100. The Sensex is likely to test 14300 on the downside while it may face resistance at 14450.

US indices finished weak on Wednesday as rising Treasury bond yields sparked a late selloff despite a big drop in oil prices and a $22.5 billion share buyback plan from Home Depot. While the Dow Jones declined 146 points at 13489, the Nasdaq dropped 27 points to close at 2600 on weakness in tech stocks.

Few Indian ADRs slipped on the US bourses following a slump in the US market. ICICI Bank and Patni Computer tumbled over 2% each. Among the other major losers Infosys, Satyam, Wipro and Rediff shed around 1% each. However, Dr Reddy's, HDFC Bank, MTNL and VSNL gained over 1% each.

Crude oil prices moved down, with the Nymex light crude oil for June delivery slipped by 91 cents at $68.19 a barrel. In the commodity segment, the Comex gold for August series added $4.70 to settle at $660 a troy ounce.

Market to consolidate

The market is expected to consolidate after two straight days of rally. The 30-share BSE Sensex rose 116.45 points to 14,411.95 on 20 June 2007. Cues from the US markets were not encouraging either.

Asian markets were trading higher. Hong Kong's Hang Seng (up 0.44% at 21,779.76), Japan's Nikkei (up 0.14% at 18,237.25), Taiwan's Taiwan Weighted (up 0.65% at 8,812.38) and South Korea's Seoul Composite (up 0.53% at 1,793.27), all edged higher.

A surge in Treasury yields rattled Wall Street on 20 June 2007, forcing stocks to give up early gains. The Dow Jones slipped 146 points, or 1.07%, to 13,489.42, after bobbing in and out of positive and negative territory earlier in the day. Broader stock indicators also tumbled. The Standard & Poor's 500 index declined 20.86 points, or 1.36%, to 1,512.84, and the Nasdaq Composite index fell 26.80 points, or 1.02%, to 2,599.96.

As per the provisional data, FIIs were net buyers of Rs 242.29-crore equities, while domestic institutional investors (DIIs) bought shares worth a net Rs 104.13 crore on Wednesday , 20 June 2007.

Oil prices nudged higher on Thursday, 21 June 2007, after declining 2% on data showing a surge in U.S. crude stocks, with dealers refocusing on a general strike in Nigeria and unusually low U.S. refinery operations.London benchmark Brent crude rose 27 cents to $70.69 a barrel by. Prices had touched a 10-month high of $72.25 on Monday, 18 June 2007.

Emkay - Morning Notes, Lakshmi Machine Works

Emkay - Morning Notes, Lakshmi Machine Works

Indiainfoline - Intraday Stock Ideas

NIFTY 4248 SUP 4212 RES 4284

BUY INDIANBANK (124) SL 121 T 132, 134

BUY MPHASIS (318) SL 313 T 327, 329

BUY GUJAMBCEM (118.15) SL 114 T 125, 127

SELL BHARATFORGE (305.6) @ 309 SL 313 T 297, 295

SELL RANBAXY (353) @ 357 SL 361 T 345, 343

Momentum madness

“If your position is everywhere, your momentum is zero.”

The current run appears to be a pure momentum play. This week's pull back has been driven mainly by short-covering and therefore may not sustain going ahead for the near term. What will continue is the intra-day gyrations as a lot of churning is being seen in the market. Tread cautiously. The Sensex needs just over 300 points to make another lifetime peak. We expect a decent opening despite the overnight weakness in US shares. However, things may get volatile during the day. The short-term bias is up though the bulls may get tired after scaling a new peak.

The US stocks were down sharply overnight. Asian markets have not reacted to the fall on Wall Street. Hong Kong index is up over 170 points while the Nikkei in Tokyo is up marginally. We expect the bulls in India to capitalise on the momentum gained in the past couple of days. Yesterday's provisional FII figure and Tuesday's reported figure are both encouraging.

FIIs were net buyers of Rs2.42bn (provisional) in the cash segment yesterday and local institutions pumped in Rs1.04bn. In the F&O segment, foreign funds poured in Rs11.54bn yesterday. On Tuesday, FIIs were net buyers of Rs6.5bn in the cash segment. Mutual Funds were net sellers to the tune of Rs339mn.

Among the stocks, SBI could be in the focus as the government is contemplating a merger between the bank and four of its subsidiaries. Lanco Global may come under some pressure as Ernst & Young has reportedly found the joint bid by the company and its partner Globeleq invalid. Max India is likely to attract some attention as it has raised Rs10bn through a QIP, including investment by IFC. The company is also looking at inorganic opportunities. Tata Motors might be in the limelight as it plans to raise $450mn from the international market for new product development and capex.

Sesa Goa could rise amid reports that iron ore exports have actually risen in the last couple of months and spot prices have also increased. ONGC may fall as a financial daily reports that the Director General of Hydrocarbon (DGH) has substantially slashed the company's estimates from its latest KG basin gas discovery. Britannia is also expected to hog the limelight amid reports that the Wadia group and Danone are heading for an amicable resolutions of all the differences.

A late selloff sent the Dow tumbling on Wednesday owing to rising Treasury bond yields. Stocks were also dragged lower by energy producers after the price of crude oil fell from a nine-month high.

The S&P 500 declined 20.86, or 1.4%, to 1512.84. The Dow Jones Industrial Average lost 146, or 1.1%, to 13,489.42. The Nasdaq Composite Index decreased 26.80, or 1%, to 2599.96.

The yield on the benchmark 10-year US note rose to 5.13% from 5.08% on Tuesday. In currency trading, the dollar gained against the euro and the yen. COMEX gold for August delivery fell $4.70 to $660 an ounce.

US light crude for July delivery sank 91 cents to settle at $68.19 a barrel in New York. The government reported that weekly crude and gasoline supplies rose much more than expected.

European shares closed higher. The pan-European Dow Jones Stoxx 600 index, which tracks Europe's 600 biggest companies, rose 0.4% to 397.86. The German DAX 30 rose 0.7% to 8,090.49 to reach a new closing high. The previous closing high of 8,064.97 was reached on March 7, 2000. The French CAC-40 advanced 0.4% to 6,093.29. The UK's FTSE 100 finished a fraction of percentage point lower at 6,649.30.

Stocks in Brazil and Mexico declined. In Mexico City, the IPC lost 1.6%, to end at 31,550.76. In Sao Paulo, the benchmark Bovespa index fell 1.1% to 54,029.24. The RTS index in Russia climbed 1.5% to 1915.

Asian stocks advanced for a sixth day after prices of computer-memory chips surged and a report today showed Japan's export growth almost doubled in May.

Samsung and Toshiba paced technology shares higher, helping the Morgan Stanley Capital International Asia Pacific Index to a record. China Mobile lifted Hong Kong's Hang Seng Index to a new high.

The MSCI index added 0.2% to 154.11 as of 12:11 p.m. in Tokyo, after declining as much as 0.3% earlier. The measure jumped 2.9% in the previous five days.

Japan's Nikkei 225 Stock Average climbed 0.1% to 18,237.25, recouping losses of as much as 0.6%. Benchmarks gained elsewhere in the region, except in New Zealand, Australia and the Philippines.

Markets further gained ground as bulls continued its rally. After opening on a strong note as key indices managed to hold on to their gains as index heavy weights like SBI, L&T, Tata Motors and Bajaj Auto aided support. Even the Mid-Cap and the small cap participated in the rally.

All the key indices finished in positive terrain with Banks again leading the way from front. However, Oil & Gas index was a bit dicey as Reliance Industries gained only Rs4. Blue chip SBI was the major mover as the scrip lifted the benchmark Sensex by 19points.Finally, the 30-share Sensex surged 116 points to close at 14411. NSE-50 Nifty advanced 34 points to close at 4248.

Surana Industries was frozen at 5% upper circuit to Rs125.70 after the company reportedly is in the final stages of negotiations to secure a long-term lease for a coal mine in Indonesia. The company announced that had raised $25 million through a FCCB issue for the Rs4.73bn Raichur project. These bonds, listed on the Luxembourg stock exchange, will be converted into equity shares at a price of Rs140 per share. The scrip touched intra-day high of Rs125.70 and a low of Rs121 and recorded volumes of over 24,000 shares on NSE.

Batliboi surged by 7% to Rs116 after the company announced that they have purchased France’s AESA Air Engineering for Rs90mn. The scrip touched intra-day high of Rs118 and a low of Rs109 and recorded volumes of over 62,000 shares on NSE.

Wockhardt gained by 1% to Rs395 after the company secured US FDA approval for Cefprozil tablets. The scrip touched intra-day high of Rs398 and a low of Rs390 and recorded volumes of over 1,00,000 shares on NSE.

Varun Shipping advanced 2% to Rs56 after the company acquired very large Gas carrier. The scrip touched intra-day high of Rs57 and a low of Rs54 and recorded volumes of over 1,00,000 shares on NSE.

Blue Dart rallied by over 10% to Rs771 following reports of an open offer at price which could be substantially high compared with its current market price. However, company denied any such move. The scrip touched intra-day high of Rs819 and a low of Rs663 and recorded volumes of over 6,00,000 shares on NSE.

Banking stocks continued its upward trend led by gains in the frontline stock SBI as the scrip gained by 3.8% to Rs1423, ICICI Bank edged higher by 0.4% to Rs948. Canara Bank was the star performer as the scrip rose by over 10% to Rs275 others like Bank of India and Corp Bank were the major gainers among the Mid-Cap stocks.

Capital Good stocks also ended higher. BHEL advanced by 1.4% to Rs1425, ABB was up by 1% to Rs4650, Punj Lloyd surged by over 6% to Rs262, Gammon India gained 2% to Rs396 and BEL added 2% to Rs1847.

IT stocks managed to end with gains. The Mid-Cap stocks like Rolta spurred by 5.5% to Rs464, Mphasis BFL surged by 3.3% to Rs318 and NIIT Ltd added 2.7% to Rs934. however, Infosys slipped lower.

Metal stocks shined brightly led by Sterlite Industries as the scrip surged by 8% to Rs609, Hindustan Zinc spurred by 7% to Rs717 and Hindalco was the scrip was up by 0.8% to Rs162 and JSW Steel added 1.8% to Rs605.

Results Today:

Aban Offshore, Abbott India, Educomp Solution, Gateway Distriparks, Hotel Leela and Mcnally Bharat.

Insider Trades:

Hotel Leela Venture Ltd: Life Insurance Corporation of India and Its Associates has purchased from open market 600,000 equity shares of Hotel Leela Venture Ltd on 14th June, 2007

Tech Mahindra Limited: Hon. Akash Paul, Director has sold in market 8985 equity shares of Tech Mahindra Limited on 14th June, 2007

Petronet LNG Limited: P. Dasgupta, Managing Director & CEO has purchased from open market 10000 equity shares of Petronet LNG Limited on 12th and 14th June, 2007

Gujarat Ambuja Cement Ltd: Shri P B Kulkarni, Director has sold in open market 19000 equity shares of Gujarat Ambuja Cement Ltd on 12th, 14th and 15th June, 2007

Major Bulk Deals:

Citigroup has picked up Gayatri Projects; Lotus Global has sold IKF Technologies and Soma Textiles; Bear Stearns has bought Swan Mills; Goldman Sachs has purchased Vakranjee Software.

Lower Circuit:

Hindustan Organic, Rama Pulp, Yashraj Securities, United Breweries and BF Utilities.

Upper Circuit:

DCB, UTV Software, Deep Industries, Godrej Industries, Ashapura Minechem, Deccan Chronicle, Tanla, Malu Paper, Heritage Foods, Sical Logistics, GV Films, Prime Securities, Surana Industries, Swan Mills, Ruby Mills, Vakrangee Software.

Delivery Delight (Rising Price & Rising Delivery):

Adlabs Films, Amtek Auto, Arvind Mills, Bajaj Auto, Bank of India, BEML, Bharti Airtel, CEAT, Cipla, GDL, Gitanjali Gems, Grasim, Gujarat Ambuja, Gujarat State Petronet, Hindalco, HDFC, Indiabulls Financial, MTNL and ONGC.

Abnormal Delivery:

Essel Propack, EIH, HCL Infosystems, IOC, Jagran Prakashan, Mahindra Gesco, IPCL, 3i Infotech, Aptech, Cambridge Solutions and Suzlon Energy.

Major News & Announcement:

Ranbaxy gets tentative nod for generic Norvasc

Tata Motors to raise US$450mn overseas

Batliboi Buys France’s AESA Air Engineering

Cadila to set up venture with US TGL Enterprise

BEML follow-on public issues on June 27

Meltar Trading plans to buy 14.43% of Great Offshore

Indian Hotels to increase the limit of Foreign Investment to 30%

Aarti Industries forms Venture with Sojitz Chemical

Wockhardt gets US FDA approval for Cefprozil tablets

Varun Shipping acquires very large Gas carrier

Anagram - Daily Call - June 21 2007

Anagram - Daily Call - June 21 2007

Daily Strategist

The NIFTY futures saw a rise of 2.85 % in OI with prices moving up indicating fresh long positions built up in the market thus forcing bears to cover their positions thus indicating further strength in the market .The nifty June series futures discount came up from nil to 6 points indicating some profit booking happening at the end of the day. Market if it sustains above 4210 levels then we may see further short covering their positions and fresh built up of long positions. The FII were buyers in index futures to the tune of 651 crs and buyers in index options to the tune of 355 crs. The PCR has changed from 1.35 to 1.37 levels indicates some buying support may be seen in the market. IV in the market was 23.85 and HV was 23.02.

Among the Big guns, ONGC saw marginal drop in OI with prices coming up indicating shorts covered their positions and some fresh buying emerging in the counter suggesting further strength may be seen in this counter. Whereas RELIANCE saw drop in OI with prices flat indicating some profit booking seen in the counter suggesting one may take long positions in he counter on any dip.

In the TECH counters TCS saw gain in OI with prices moving down indicating short positions built up in these counters and longs liquidating their positions suggesting some weakness may be seen in these counters in coming days. SATYAMCOMP, INFOSYSTCH and WIPRO saw drop in OI with prices remaining in a dull range suggesting that prices facing resistance at current levels indicating some weakness may be seen in these counters in coming days.

In the BANKING counters, SBIN saw rise in OI with prices moving up indicating fresh long positions built up in these counters and shorts covered their positions indicating further strength may be seen in this counters in coming days. HDFCBANK saw drop in OI with prices in a range suggesting liquidation of positions in this counter. ICICIBANK saw gain in OI with prices in a range suggesting that both bulls and bears made aggressive position in the counter indicating uncertainty may prevail in the counter.

In the Metal pack, TATASTEEL & SAIL saw rise in OI with prices facing resistance at current levels suggesting short positions built up at higher levels which may put some pressure on these stocks suggesting some weakness may be seen in these counters. HINDALCO saw drop in OI with prices remaining in a range thus one should have neutral view on the counter. NALCO saw drop in OI with prices coming down indicating liquidation of long positions in the counter. STER saw drop in OI with price crossing the resistance and closing at higher levels indicating further short covering may be seen in this counter suggesting further strength may be seen in this counter.
We feel that the volume and built up in OI suggests that market may show strength if it sustains above 4210 levels where we may see fresh long positions built up in the market thus one should not take aggressive short positions in the market . One should trade with strict stop losses to be adhered too.

Anand Rathi - Daily Technicals - Jun 21 2007

Nifty and Sensex have exhibited a bullish candlestick.

Technically, one may use the level of 4180 (Nifty) and 14270 (Sensex) as the stop loss level.

Nifty faces resistance at 4280 and Sensex at 14550.

Nifty Range 4190 to 4280.

BSE Smallcap and BSE Midcap also exhibited bullish candlesticks.

CNX IT has closed flat.

In the Punter's zone we have a Sell in Ranbaxy, BPCL and Cummins.

In the Technical call section, we have a Buy in REL, Patel Engg and Amtekauto.

Anand Rathi - Daily Technicals - Jun 21 2007

Anagram - Eveninger - June 20 2007

Anagram - Eveninger - June 20 2007

Warburg bids for half of ICICI shares on offer

Warburg Pincus, a US-based private equity firm, has put in the highest bid worth Rs 5,000 crore for ICICI Bank shares, which is half the size of the follow-on equity offer from the country’s largest bank, including the greenshoe option.

ICICI Bank received bids for 31.18 crore shares at the end of the second day, which is 3.15 times the shares on offer, according to figures available at 5 pm with the National Stock Exchange.

Bids from Indian qualified institutional investors and individuals totalled 11.87 crore, which provides the bank room to allot a greater number of shares to domestic investors, so that the total foreign shareholding is kept below 70 per cent. The current foreign shareholding in the bank is close to 72 per cent.

Foreign institutional investors (FIIs) have bid for 19.31 crore shares. The retail shareholders’ response was expected to pick up tomorrow with Friday being the closing day.

The bank is likely to announce the pricing on Saturday. The price band for the issue is Rs 885-Rs 950 per share.

Result Update - Indian Hotels

Result Update - Indian Hotels

India Telecom Sector

India Telecom Sector

A dismal day for US Market

Higher interest rate and hedge fund worries lead to a triple digit fall for Dow even as crude falls

US Market, today (Wednesday, June 20, 2007) witnessed a huge fall as stocks stumbled mainly in the final hour of trading. Morgan Stanley’s stupendous earnings report, lower crude prices and a buy back news from Home Depot failed to check the sliding stocks as investors once again became worried about the rising interest rate. News of Bear Sterns shutting two of its big hedge funds just made the situation further worse.

Twenty four of the 30 Dow stocks retreated back into red in the final hour of trading while going into close. The Dow Jones Industrial Average closed lower by a huge 146 points to close at 13489.42. Nasdaq slipped by 26.8 points to close at 2599.96. S&P 500 ended the day shedding 20.96 points to close at 1512.84.

Home-Depot, P&G and GM were the major Dow winners today. Exxon Mobil, Mc Donalds and JP Morgan Chase were the main Dow laggards. Without any sectoral leadership, all ten economic sectors ended lower with energy leading the way.

Rising bond yields have pressured the stock market over the past couple of weeks. Investors started worrying today after yield on the 10-year Treasury note started moving higher just after lunch hours and the yield hit as high as 5.142% before slipping back to 5.12%.

Home-Depot shares today surged 4.6% after the home-improvement announced it would buy back up to $22.5 billion of its own shares. The news comes a day after the company decided to sell its supply business for $10.3 billion.

Morgan Stanley announces blowing earnings report - drops 0.5% after rising 4%

When market opened in the morning, all the three indices were in green with Dow getting a major boost from Home-Depot.

The financial sector and the broad market also got a boost after Morgan Stanley said second-quarter earnings were up 40% from the year earlier, widely beating analysts estimates. Its shares rose by almost 4% at first, but ultimately closed down 0.5%.

But the strength from Home-Depot was not strong enough to lift the broader market which was down by a weak energy sector and the underperformance of the financial and health care sectors. REITs are the main pocket of weakness in the financial sector.

Among other earnings news, both FedEx and Circuit City had disappointing reports.

But after a brief period of time, the indices started paring their gains. Meanwhile, The Wall Street Journal reported that two big hedge funds run by Bear Stearns were close to being shut down as a rescue plan fell apart. Shares of Bear Stearns dropped 2.5%. This fuelled the selling activity further and indices just plummeted in the final couple of hours of trading.

Home Depot’s boost not sufficient enough to keep Dow in green

Crude oil futures slipped today and fell to almost $68/bbl after Energy Department was out with its weekly inventory report where it showed unexpected surge in crude inventories for the week ended 15 June. The expiration of the July contract at the trading session's close also likely exaggerated the moves in crude prices today.

Crude-oil futures for light sweet crude for July delivery closed at $68.19/barrel (lower by $0.91/barrel or 1.3%) on the New York Mercantile Exchange. The contract retreated from an earlier peak of $69 to trade as low as $67.35. As per today’s weekly inventory report, crude supplies climbed 6.9 million barrels for the week ended 15 June and stood at 349.3 million barrels. This was much above expectations (unchanged to 1 million barrel surge was expected).

Trading volumes showed 1.672 billion shares exchanging hands on the New York Stock Exchange and 2.034 billion on the Nasdaq stock market. Declining issues topped gainers by more than 3 to 1 on the NYSE and by 21 to 8 on the Nasdaq.

For tomorrow, investors will look for economic data to help set the tone of trading. The weekly Initial Claims report is expected to hit the wires at 8:30 ET. It will be followed by Leading Indicators and the Philadelphia Fed index after market opens in the morning.

Reliance Industries

Reliance Industries

ICICI Bank still a global pygmy

ICICI Bank Ltd’s market capitalization is set to cross the Rs1 trillion mark following its current equity offering, but that number still doesn’t make it a big bank by global standards.
The largest private sector lender in India is in the market with a public issue that will take its total number of shares to 1,111.22 million. At Wednesday’s closing price of Rs947.85, ICICI Bank’s market capitalization on its expanded equity base will be about Rs1.05 trillion.

This is much higher than State Bank of India’s (SBI) Rs75,000 crore market cap.
Globally, Citigroup has a market capitalization that is more than 10 times ICICI Bank’s at $268.3 billion (Rs11 trillion). Bank of America’s market capitalization is $224.33 billion. And Industrial & Commercial Bank of China, Asia’s largest bank, has a market capitalization of $218.23 billion.

ICICI Bank’s public issue was subscribed 3.15 times on the second day, with investors bidding for 311 million shares against the total issue size of 98.8 million shares.
The qualified institutional buyers—foreign investors, banks and mutual funds —subscribed their portion 6.2 times.

However, retail investors are still staying away from the issue, despite sops given by the bank in terms of a Rs50 discount to the final price and a staggered payment for the shares.
The retail portion was subscribed 0.03 times on the second day.

Shares of ICICI Bank rose by 0.37% on the Bombay Stock Exchange (BSE), while the exchange’s benchmark index, Sensex, rose 0.81% to close at 14,411.95.

Bank stocks continued to rally on the exchange and the Bankex, the banking index of BSE, rose 1.42% to close at 7,790.27. Shares of SBI rose by 3.85% to close at Rs1,425.20.

The third Indian bank in terms of market capitalization, HDFC Bank Ltd, is less than half SBI’s size by market capitalization.

Following the public issue, ICICI Bank will become the eighth member of the trillion- rupee market cap firms on Indian bourses.

Reliance Industries Ltd now heads the list, followed by Oil and Natural Gas Corp., Bharti Airtel Ltd, NTPC Ltd, Tata Consultancy Services Ltd and Infosys Technologies Ltd.
Reliance Communication Ltd too has a market capitalization of more than Rs1 trillion, just behind ICICI Bank. The list of the top 10 Indian firms in terms of market capitalization also includes DLF Ltd, which will list on the exchanges soon, and Wipro Ltd.

Delhi-based realtor DLF, which recently concluded its public issue, will have a market cap of Rs0.9 trillion assuming that its stock lists at the issue price of Rs525.

Geojit - KCP Ltd

Geojit - KCP Ltd

Technicals & Technical Futures - June 21 2007

Technicals & Technical Futures - June 21 2007

Sharekhan Eagle Eye (equities) & Derivatives Info Kit for June 21, 2007

Sharekhan Eagle Eye (equities) & Derivatives Info Kit for June 21, 2007

Network 18 Fincap: Sharekhan Stock Idea dated June 20, 2007

Network 18 Fincap
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs651
Current market price: Rs476

Striking the right(s) note

Key points

  • News businesses to flourish: Network 18 Fincap (Network 18) controls the front-line business channels CNBC-TV18 and Awaaz, and the fast growing general news channels CNN-IBN and IBN 7. With the digitalisation of cable and advent of DTH platform, the subscription revenues would substantially boost the profitability of the group. Also, Awaaz, CNN-IBN and IBN 7 have shown good viewership gains and should drive the growth as they mature over the coming years.
  • Web properties to add tremendous value: Network 18 through its associate companies Television Eighteen India (TV18) and Global Broadcast News (GBN; together the two hold 100% in Web18) owns several web properties like, and among others, covering the news, e-transaction, travel, recruitment, shopping and e-ticketing genres. It has added many new web properties over the last year and started spending heavily on enhancing these sites and popularising them.
  • Taking big steps in entertainment: Through GBN it has entered into an alliance with Viacom Inc to launch a Hindi general entertainment channel. The alliance also gives it part ownership of MTV India, VH1 and Nickelodeon. The group’s movie business would derive synergies from Viacom Inc’s world-famous studios.
  • Group builds war chest for growth: Sensing the opportunities provided by the booming Indian media & entertainment industry and allied sectors, the TV18 group is building a war chest for exponential growth. While TV18 has raised Rs200 crore through a QIP, Network 18 proposes to raise a similar amount through a rights issue of partly convertible preferential shares. GBN aims to raise $200 million through an overseas offering while its board members have approved a plan to raise a debt of Rs1,500 crore. We believe with all these funds the TV18 group aims to become one of the big wigs of the Indian media and entertainment business.
  • Rights issue adds Rs133.6 per share to value: The company proposes to raise Rs200 crore via a rights issue of 5% partly convertible cumulative preference shares (PCCPS). It will offer one PCCPS for every five equity shares held. Our calculations suggest that the rights add Rs133.6 to the value of each existing equity share and make the Network 18 stock even more attractive.
  • Valuations suggest a 37% upside: Our valuation of the Network 18 scrip based on its holdings gives us a value of Rs517.8 per share before the rights issue. The rights issue adds Rs133.6 to the price of the existing float, giving us a fair value of Rs651 for the scrip and indicating a good 37% upside from the current market price of Rs475.5. We initiate a Buy recommendation on the stock with price target of Rs651.

  • Network 18 Fincap: Sharekhan Stock Idea dated June 20, 2007

    EXCLUSIVE - Equibrain Report - June 21 2007

    EXCLUSIVE - Equibrain Report - June 21 2007

    Use free or customize for your own stocks - contact Aditya (details inside PDF)