Friday, July 06, 2007
India's total telecom subscriber base has reached over 205-million mark at the end March, a growth of 8.39 per cent as compared to the figure on December 31, 2006.
The blended Average Revenue Per User per month for GSM services in the country has declined by 5.69 per cent from Rs 316 in the quarter ending December 2006 to Rs 298 in the three-month period ending in March.
For CDMA services, it increased to Rs 202 as against Rs 196, registering a growth of 3.06 per cent, according to TRAI's Quarterly Performance Indicators of Telecom Services for the quarter ending March.
The teledensity reached 18.23, compared to 17.16 at the end of the previous quarter.
The subscriber base for wireless services has increased from 149.62 million to 165.11 million and that of wireline service from 40.30 million to 40.75 million.
The internet subscribers base reached 92.71 lakh at the end of March 2007, registering a growth of 8.03 per cent, whereas broadband subscriber base reached 23.39 lakh in the same quarter, a growth of 13.85 per cent.
The number of Public Call Offices (PCO) in the country increased from 5.30 million to 5.55 million at a growth rate of 4.72 per cent while the number of Village Public Telephones (VPT) rose to 5.64 lakh from 5.57 lakh, an increase of 1.26 per cent.
Close to 24 issues during the past one year have outperformed the market and nearly half of all the issues that came in the past one year are still trading above their issue prices.
The question now on every investor's mind is: “Do I hold on or do I cash out?” As always, trust ET Investor's Guide to step in when in doubt, as we guide you on how to ensure that you continue being both a profitable, as well as a prudent investor. We think that it is time for IPO-intensive portfolios to be rebalanced.
The rebalancing is necessary, given the greater clarity on many of the projects that these IPOs were intended to fund. Also, over the past year, many of these stocks have seen a re-rating, thereby altering the view that investors should now take on these stocks. Some of these companies are now trading at levels which are at the higher end of their peer group and not necessarily the best either.
While ET Investor's Guidesaw value in many of these at the time of issue, we think it's time to cash in. Similarly, there are others which, given the discount to issue price, are now starting to look extremely attractive.
A few like Cairn have seen a change in their business environment. For example, ET Investor's Guide was not enthusiastic at the time of Cairn's IPO, given the lack of clarity on how the crude would be evacuated. However, today a greater conviction and visibility has emerged on the same and so, we believe it's time to accumulate.
Others like ICRA have seen a complete reversal in fortunes, while our recommendation was mainly on account of the valuation discount to Crisil. This has changed post-listing, with Crisil now trading at a discount. Similarly, others like GVK and GMR Infrastructure have seen a big change in their fortunes, with the market starting to realise the potential of airports, which was never really there at the time of the issue. So, how exactly do you go about recasting your IPO portfolio? ET Investor's Guide gives you a headstart.
GMR Infrastructure: ET Investor's Guide was positive on the stock, given the company's two airport projects at
Development Credit Bank: This has been among the best performers among all our IPO recommendations, rewarding investors with close to four times their invested capital. Given the strong run that the scrip has seen, we believe that further upsides in the scrip are limited. Valuations, too, are at the upper band of peer group stocks at close to 5.5x FY07 book - banks that trade at comparable multiples include HDFC Bank. Investors may consider booking gains and moving to UTI Bank or ICICI Bank in the private banking space.
ICRA: ICRA has been largely a beneficiary of the booming financial services industry and the positive environment for ratings services. ET Investor's Guide recommendation was based on the discount multiple of the issue price to Crisil - the largest rating agency in
Sobha Developers: Sobha was among the first real estate companies to tap the equity market. Sobha largely benefited from the scarcity premium for real estate companies.This has changed substantially since then, with a slew of companies raising money through the equity route. This is also partly responsible for the stock's moderate performance, driven by higher equity supply and rising interest rates. Moreover, Sobha's projects are concentrated in
Technocraft Industries: ET Investor's Guide was bullish on this counter, mainly given its strong position in the industries that it operates.These include scaffolding equipment, storage drum equipment for petrochemicals. The stock is currently available at close to one-time sales and a P/E of 12.5x. Exports comprise nearly 95% of the company's sales and the stock is now trading at a 22% discount to its offer price.
Bluebird Industries: This is a pure value pick, trading at close to half its FY06 sales with a market capitalisation (m-cap) of Rs 242 crore and sales of Rs 400 crore. The company is among the largest manufacturers of notebook and printing stationery. It is currently available at a P/E of 10x. Further growth could come from the fresh capacities being put up, which is expected to see bottomline contribution staring H2 FY08 onwards.
House of Pearls Fashions: HOPFL looks reasonably priced at current levels. The company employs a highly scalable model based on its own manufacturing and outsourcing. It has added 25 new clients in FY07, taking the total number of clients to 95. It has executed a capacity expansion plan at its Chennai facility, increasing production from 3.5 million pieces to 4 million pieces by August '07. The company's order book size stands at $125 million, to be executed till September. Given its growth prospects, investors can take position in this scrip at the current levels.
Did you know that a slowdown in the real estate market is an opportunity for making money on real estate? This is no joke. Bust times are as much an opportunity to make money as boom times, say experts. It only requires structured market analysis to get your returns right.
Take the case of investors who have purchased at a frenzied pace during boom times. With the property market churn slowing down, many investors are exiting the market at cost price or even less. For instance, an investor who put in Rs 70 lakh (30-40% of the total cost of the property) in a premium project in Gurgaon, recently sold at a profit of a mere 7-8 lakh. And that too because he was able to purchase on the first day of the booking. For those who purchased 15 days after the booking began, the rates were higher. Those buyers have no option but to hang on or sell at a loss.
But this is a good opportunity for end users or long-term buyers to enter the property market. The developer has now started receiving final clearances and sanctions for the project and the project will start soon. This is good news for an end user who knows that his property will be ready in a finite number of months.
The end user today is also in the driver' seat while purchasing new property that has recently been completed or is nearing completion. Developers such as Supertech and Achievers are offering to pay the interest rate on the loan till the property is ready for possession.
Once he gets possession of the property, especially in expat-driven markets such as Gurgaon, Noida and South Delhi, the buyer can fully fit out and furnish the property for lease. “Once a premium property is fully furnished, you get Rs 30,000-50,000 more as rental values,” explains real estate consultant Ashok Narang. He gives the example of Laburnum in Gurgaon where monthly lease rentals range about Rs 1.5 lakh per month. But once the owner has furnished the property, he can easily get back Rs 2 lakh per month. “Furnishing involves an additional investment of up to Rs 15 lakh but yields monthly returns of about Rs 50,000 more than unfurnished property,” Narang says.
The trend of expats driving better rental returns is happening across segments of the property market too. Latest trends indicate that with every expat CEO coming to the country, there are four middle level manager who also come to India to accompany him. This segment is looking for well-maintained, well located, furnished and managed property.
They seek shorter tenures of lease but are willing to pay for services. Therefore choose your property well to get better yields. They should be in the vicinity of the economic hubs with good social infrastructure such as schools and hospitals as well as recreation facilities.
With the new thrust of lower rates of interest on smaller property loans of up to Rs 20 lakh, smaller property has started coming into the market. These are either in far-flung areas or of smaller unit sizes. Both are a good deal in the current scenario. If you are buying a property in a far-flung area, please assess the long-term merits of the location. When you start your purchase, it may look like the wilderness. But if you wait for infrastructure to come, the values will not be low. So assess the infrastructure plans of the area.
Developers are normally only too happy to tell you these details. For instance, in the Delhi NCR region, the proposed metro lines are a big draw. Property along metro lines are always good to attract end users. So check out the proposed metro plans before you buy. Expressways and bypasses also make a difference to the property rates. If you buy today, it will be two years before you can take possession of the property. If infrastructure comes in then or soon after, your deal is safe.
If you are looking at regular returns from your property investment, it is a good idea to buy even at a marginally higher cost in areas where there is good rental returns. In the last one year rental returns have risen by up to 15-20 % - 5-10% in the last six months alone. Gurgaon currently offers returns of about 4% and South Delhi areas offer returns of about 6%.
In cities such as Hyderabad and Bangalore, employers have started taking up small furnished apartments to service their own floating population. Techies who are in the city to complete a project often prefer to stay in furnished apartments rather than in hotels. Therefore investment in well-located and maintained apartment complexes with small units has become extremely popular. Technology companies are now leasing them in bulk so that all their employees can stay in the same complex.
If you have a transferable job and are wary of buying in one city from where you may be transferred out, remember rising rental returns are in your favour. If you buy today in the city you are stationed in, buy where there is demand for rental property. If you have to go to another city, either sell off the property and use that as the seed money to buy in the new city. Don't worry. There is nothing dramatic or radical about that. This kind of sale and purchase is done globally. Property investments have been considered a once in a lifetime decision only in India. Today, there are brokers who can help you sell in one city and buy in another at the same time.
If you are uncomfortable with that idea, do not think of lugging your furniture to the new city. Let out your flat furnished for better rental returns which will ensure regular income when you move to the new city. There are now a few tenancy managers who are interested in managing your tenancy for a fee. This may help ensure peace of mind along with regular returns.So go ahead and buy. Just make sure you assess all parameters well before you purchase.
After a couple of aborted attempts and a few hiccups later, real estate giant DLF finally made its much-awaited entry into the stock market. However, the recent slowdown in the industry and reports of property prices cooling off in some parts of India ensured that the listing was not as spectacular as some of the previous realty offerings. The company's pricing, which was considered as fairly valued, also had a bearing on the stock's performance as there was nothing much left on the table for investors, some of whom look for big listing gains and make a quick exit. They were certainly a disappointed lot. Still, it was a historic development, both for the real estate sector itself and for the Indian capital market. Post listing DLF became the eighth most valuable stock while the company's promoter - KP Singh - edged ahead of Azim Premji and Sunil Mittal to become the third richest person in India behind the two Ambani brothers.
Shares of DLF slipped after rising as much as 36% in the New Delhi-based real estate major's stock market debut. Investors turned cautious given the slowdown in the property market in the wake of the string of monetary tightening steps taken by the central bank and other measures announced by the Government to curb activity in the real estate sector. The stock opened at Rs582 on the Bombay Stock Exchange (BSE) as against the issue price of Rs525, reflecting a premium of nearly 11%. There was a freak trade at Rs714, but after that the euphoria dived, and subsequent trades took place at under Rs580.
The scrip finished the maiden trading day at Rs570, after touching a high of Rs714.25 and a low of Rs505.60. Total turnover in the stock, including F&O, almost touched Rs90bn. Also, delivery volume on the first day stood at 40% of the total traded quantity. The stock now accounts for half of the market cap of the real estate sector given the size of the issue. The realty sector itself has seen a huge jump in its total valuation with the DLF listing. The industry now ranks ahead of Auto, Pharma, FMCG and Cement.
DLF's 1.75-million share issue was subscribed 3.4 times. The price band for the issue was fixed at Rs500 to Rs550 per share. The issue price was set at Rs525, raising US$2.25bn in India's biggest IPO. The QIB portion of the issue was subscribed 5.1 times but the company barely managed full subscription for the 52.2 million shares reserved for retail investors. DLF, which scrapped the IPO in 2006 August because of shareholder disputes and valuation concerns, will use the proceeds to build apartments and offices and increase land purchases. But, the company is not done with its fund raising plans. DLF Assets, a fund set up by DLF, plans to raise US$1bn to buy land for development. It also plans to go public in the next 2-3 years.
Bharti Airtel Ltd. said it had offered a 4.99% stake to Temasek Holdings, Singapore Government's investment arm, for an undisclosed consideration. One of the group companies decided to grant an option to acquire an indirect stake in the company to a wholly owned subsidiary of Temasek Holdings, Bharti Airtel said in a statement. The option arrangement envisages acquisition of such number of shares which, on exercise, will result in a beneficial stake in the company to the extent of 4.99%, the New Delhi-based wireless telecom operator said. Though Bharti Airtel did not disclose the deal size, at current market price, it is worth over Rs82bn (about US$2bn).
Meanwhile, Singapore Telecommunications said it had the first right to buy shares of Bharti Airtel from Temasek. "The relevant parties have reached agreement that SingTel and Bharti have first rights to the shares acquired by Temasek pursuant to the exercise of the option, subject to certain conditions," SingTel said. "Should Temasek decide to exercise its option to purchase the shares from Bharti, and should Temasek decide to sell these shares thereafter, Bharti and SingTel have first rights," it clarified. SingTel currently has a 30.5% stake in Bharti Airtel. Temasek is the largest shareholder in SingTel.
This would be Temasek's second investment in a telecom company in India after it bought 9.9% in Tata Teleservices. There would not be a dilution in the promoters' stake in Bharti Airtel. Bharti Enterprises will continue to maintain a controlling stake of over 45% through its subsidiary Bharti Telecom, as Temasek is indirectly picking up shares from British telecom major Vodafone. After acquiring a majority stake in Hutch-Essar, Vodafone had announced that it would sell a 5.6% equity stake in Bharti Airtel for US$1.6bn in two tranches before November 2008. Vodafone will continue to hold its 4.39% indirect stake in Bharti Airtel.
Well it's a long way up and we won't come down tonight
… cause tonight will be mine - up on cloud number nine
The bulls were on a rampage this week crossing the 15k mark in style. However, they failed to settle above the psychological milestone as profit booking set in at higher levels. A sudden push from the bulls in afternoon trade on Friday lifted the Sensex past the 15,000 mark. The volatile week witnessed the listing of realty major DLF. ACC, HLL, Tata Motors, L&T and Bharti Airtel were among the major gainers. Higher crude oil prices and a stronger rupee failed to have any kind of impact on the bulls. Banking, Capital Goods, Cement and Auto shares were the big movers .
Pick up in FII investment has fueled the rally in recent days after the Nifty breached the key levels of 4300 last week. The tremendous response to the recent public issues, both in local and overseas markets have made investors more confident over the growth of the Indian economy. The Sensex rose 313 points or 2.14% to close the week at a lifetime high of 14964. the NSE Nifty advanced by 1.52% or 66 points to end at 4384. The Sensex has now gained 800 points in three consecutive weeks.
IT stocks, which were underperformers in recent times saw value buying ahead of Q1 results. However, refinery stocks witnessed profit booking as crude oil price hit a 10-month high of $72 per barrel. Many frontline stocks like L&T, BHEL, ABB, SBI closed at an all time high. Impressive auto monthly numbers, hike in cement price, rally in the global market and continued FII buying boosted market sentiment.
The results will start next week with Infosys kicking off the earnings season on 11th July. Infosys results and its guidance will be a key factor to determine the market trend. Others like Hindalco, HDFC Bank, Bajaj Auto and UTI Bank will announce Q1 results next week. We are bullish on the market but some profit booking is not ruled out. Our top sectors are banking and cement. Our top picks for investment are IOB, Andhra Bank, Kesoram, Mangalam Cement and Balrampur Chini. Other stock ideas are Bharti Airtel, ONGC, HCL Tech, M&M and Maruti.
Gains were also seen across telecom stocks. Bharti Airtel rose by over 3.5% to Rs866 after the company said that India's monthly user addition would cross 7mn. It also announced that Temasek would pick up 4.99% stake in the company and signed an outsourcing pact with Nokia Siemens for US$900mn. The scrip hit week’s high of Rs882 and a low of Rs835. Reliance Communications surged 6% to Rs550. The second largest wireless operator added 1.4mn new mobile users last month. It also announced that it was in talks with Alcatel-Lucent and Huawei to buy equipment for GSM expansion worth Rs30bn. The scrip hit week’s high of Rs565 and a low of Rs519.
The BSE Capital Goods index was the top gainer, rising by 3.9%. L&T was the second biggest gainer in the of Sensex. The scrip rose over 7.5% to Rs2364. L&T announced it would set up three units for railways, power and ship building. It also declared a special dividend of Rs2 per share. The company's US$1bn infrastructure fund is expected to be operational in the next couple of months, according to Chairman and Managing Director, AM Naik.
Auto stocks made a smart comeback this week on the back of value buying. Four-wheeler makers such as Maruti and M&M clocked strong monthly sales figures. The BSE Auto index gained 3.5%. The biggest gainer among was M&M. The scrip rose by 9% to Rs787. Tata Motors paced ahead by 6% to Rs711, Maruti surged by 7% to Rs791.
IT stocks came back into the focus ahead of the announcement of their results. Barring Friday software stocks were under pressure due to nagging concerns about margin compression from rupee appreciation. The Indian rupee gained for the fourth straight week, rising 0.6% to 40.55 per dollar. The BSE IT index was up 1.6% during the week. Satyam advanced by 4.6% to Rs489. Infosys gained 2.1% to Rs1971 and Wipro climbed 0.3% to Rs519.
Cement stocks, which have been underperforming the market for the past few months, had a week to remember amid reports that cement producers hiked prices by Rs3-5 per 50-kg bag across the country. Last week, cement shares had gone up after Finance Minister P. Chidambaram said the government had not asked cement companies to freeze prices and it would not interfere in setting cement prices. ACC jumped over 11% to Rs1040. Grasim spurred by over 5% to Rs2773 and Gujarat Ambuja added 5% to Rs131.
Good start to the monsoon had a positive effect on FMCG and Agri stocks. Talks of new fertilizer policy have also been doing the rounds. The BSE FMCG index gained 1.4% during the week. HLL rose by over 5.5% to Rs199, Colgate advanced by overt 4% to Rs385 and Britannia rallied by over 8% to Rs1709.
A whole new world
Every turn a surprise
With new horizons to pursue
....let me share this whole new world with you
15k is finally here. For the moment, it cant get any bigger than this for the bulls. Though they stretched themselves for 146 days to move from 14K to 15K. With result season kicking off and RBI meeting later this month, the ride is sure to get bumpy.
Bulls are now in uncharted territory. Much will depend on the performance of tech companies as Infosys starts the earnings season on July 11. Earnings guidance would play an important role going ahead given the appreciation in the rupee. Any negative noises from Infosys and its fellow software firms could keep the bulls on the back foot. According to India Infoline estimates, results of the top 3 companies would be disappointing and in line with market expectations. Satyam and HCL Tech are expected to come out with relatively better numbers.
However, much of the tech stocks may already be factored in the prices. Therefore, any positive sounds could result in buying at these levels. We advise buying the Top 5 Companies post results with enhanced clarity on growth and profitability.Banking stocks will continue to be in focus with inflation around 4% and likely to remain low for another couple of months banks have seen a window of opportunity in reducing select rates while keeping PLR at same level to align with the hawkish stance of RBI.
Q1 June 2007 results would dictate the trend on the bourses this month. Ahead of the earnings reporting season, the barometer index BSE Sensex hit a record high above 15,000 on Friday, 6 July 2007. Also, stock specific activity may rule the roost on the bourses this month due to results.
All eyes are on the result of index heavyweight Infosys Technologies. Infosys unveils its Q1 June 2007 results on Wednesday, 11 July 2007. IT shares surged on Friday, 6 July 2007, on bargain hunting, believing that disappointing Q1 June 2007 results had already been factored in their share prices.
Market men expect Infosys to revise downwards its rupee EPS guidance for FY 2008 to factor in the impact of the rupee’s rise. But they expect Infosys to raise revenue guidance in dollar terms. This will help it maintain the EPS guidance in dollar terms.
Infosys had guided a 20% to 22% growth in EPS in FY 2008 and a higher 25.7% to 27.7% growth in EPS in dollar terms at the time of announcing FY 2007 results.
Two-wheeler maker Bajaj Auto unveils Q1 June 2007 results on Thursday, 12 July 2007.
Domestic bourses will continue to take cue from overseas markets. Over the past two years or so Indian bourses have been closely tracking trend in global equities. Asian stocks hit record highs in the first week of July 2007.
Investors will also be keeping an eye on central bank meetings in Japan and South Korea as well as rising oil prices, with London Brent crude now within sight of last year's record high. Early in the week, regional markets may react to any surprises from the influential US employment data for June 2007.
It was a historical week for the markets, with the barometer index BSE Sensex hitting the 15,000 level and the S&P CNX Nifty also crossing the 4,400 mark. They also managed to settle at all time high levels. Fall in inflation, easing fears of interest rate hike, steady progress of monsoon, fresh build-up of positions in derivatives markets were the factors that triggered rally on the bourses. The market settled with gains in 4 out of 5 sessions in the week
The BSE Sensex gained 313 points to 14,964.12 in the week ended 6 July 2007 while the S&P CNX Nifty rose 67 points to 4,384.85
The week started on upbeat note with the BSE 30-share Sensex gaining 13.75 points to 14,664.25, on Monday, 2 July 2007. Auto, capital goods, and healthcare shares were in demand, while cement and IT shares witnessed selling.
Sensex jumped 142.25 points to 14,806.51, on Tuesday, 3 July 2007, with banking, telecom, FMCG, and construction stocks leading the rally.
The rally continued for the fifth straight trading with the BSE Sensex advancing 73.73 points at 14,880.24 on Wednesday, 4 July 2007. Shares from the metal, cement and sugar sectors saw buying, while IT pivotals were offloaded.
The five-day rally fizzled on Thursday, 5 July 2007, with the Sensex declining by 18.35 points to 14,861.89, in highly volatile trade. Auto and capital goods shares were in demand, while IT pivotals were offloaded. Realty major DLF debuted on the bourses on that day.
The benchmark 30-shares BSE Sensex galloped 102.23 points at 14,964.12, an all time closing high on Friday, 6 July 2007. It also struck a record high of 15,007.22 on on that day.
Auto stocks were in demand. Maruti Udyog rose after it sold 59,917 vehicles in June 2007, up 24% from 48,425 vehicles sold in June 2006. Maruti Udyog sold 56,000 units in the domestic market, up 25.5% from 44,626 units in June 2006.
Tata Motors, M&M and Hero Honda Motors, also edged higher
State Bank of India (SBI), the country's largest commercial bank, rose on reports that it would soon enter new business streams including pension funds to tap emerging opportunities.
Index heavyweight Reliance Industries (RIL) settled with marginal gains. The Committee of Secretaries (CoS), which met on Monday 2 July 2007 to decide on the issue of gas pricing from RIL’s D6 fields in the Krishna-Godavari (K-G) basin, has asked the power and fertiliser ministries to present their views before the committee on 5 July 2007.
Engineering & construction major Larsen and Toubro (L&T) struck a lifetime high on reports it had formed separate companies for power projects and shipbuilding businesses. The company may also unlock value in power and shipbuilding businesses after five years. Meanwhile, L&T expects Rs 1,000-crore revenue per annum from railway modernisation in three years.
State run oil exploration major ONGC slipped as it sharply cut gas reserve estimates at one of its blocks in the Krishna Godavari Basin. The block is estimated to have 2.38 trillion cubic feet (TCF) of in-place gas reserves, much lower than its earlier estimate of 21 TCF.
Cement stocks surged following reports that cement firms have hiked prices by Rs 3-Rs 5 per 50-kilogram bag across India. ACC, Ambuja Cements, Grasim, UltraTech Cement Company, India Cements, all logged smart gains.
Vishal Retail settled at Rs 752.20, a huge premium of 178.51% over the IPO price of Rs 270, on Wednesday 4 July 2007. The scrip touched a high of Rs 809 and low of Rs 423.25. It debuted at Rs 472.50. On BSE, 1.14 crore shares were traded in the counter on that day.
Real-estate major DLF settled at Rs 570.05, a premium of 8.57% over the IPO price of Rs 525 per share, on Thursday, 5 July 2007. The scrip debuted at Rs 582, and touched a high of Rs 714.25 and a low of Rs 505.60 during the day on BSE. The counter saw high volumes of 3.42 crore shares on BSE, on that day.
India's wholesale price index rose 4.13% in the 12 months to 23 June 2007, higher than the previous week's increase of 4.03% due to a rise in some food and mineral prices, government data released noon on Friday, 6 July 2007, showed.
Roman Tarmat will list on BSE and NSE on Monday, 9 July 2007. It will be placed in the B1 group on BSE. The company had fixed the IPO price at the top end of the Rs 150 - 175 price band.
At the IPO price of Rs 175, the PE multiple is 22.43, based on the year ended March 2006 EPS of Rs 7.8.
Roman Tarmat IPO ended on 19 June 2007 with 29.67 times subscription. The issue received total bids for 8.60 crore shares compared to total issue size of 29 lakh shares.
The total bids in the Qualified Institutional Buyers (QIBs) category were 3.84 crore shares. From this category, the Foreign Institutional Investors bid for 2.86 crore shares, Domestic Financial Institutions bid for 73.75 lakh shares and Mutual Funds bid for 20.88 lakh shares.
The Non Institutional Investors bid for 2.60 crore shares, out of 4.20 lakh shares allotted for this category.
The retail individual investors bid for 2.13 crore shares. From this, 2.01 crore shares were bid at cut off price and 11.87 lakh shares were price bids. The employees bid for 75,000 shares.
Roman Tarmat is a Mumbai-based infrastructure company engaged in the business of highways, runways and other civil work.
The company, established in 1986, provides engineering, procurement and construction services for infrastructure projects sponsored by Government/Government agencies.
Broadly, the business activities can be categorised into the following three segments: airside works; highways and roads; and other civil work. The company is one of the few construction companies in India operating in the area of construction of runways, which requires a strict focus on quality to ensure safe take off and landing of aircrafts.
Over the years, it has developed the expertise of building runways that adhere to the strict quality standards and has built runways for major civil airports (Mumbai and New Delhi airports) as well as military airports.
The order book comprising un-commenced projects, unfinished and uncertified portions of its commenced projects, as on 30 April 2007, was Rs 336.89 crore.
The company posted a net profit was Rs 8.50 crore in FY 2006, as compared to Rs. 3.67 crore in FY 2005. Total income of Rs 90.94 crore in FY 2006, as compared to Rs 77.30 crore in FY 2005.
The market sent jitters amongst the investors in early trades, as the Sensex opened at 14843, lost ground on sustained selling to slip below the 14830 mark and touched the day's low of 14826. However, renewed buying ensured the Sensex remained in positive territory thereafter. The strong buying in IT and CG stocks lifted the Sensex above the 15000 mark to an intra-day high of 15007. The Sensex finally ended the session with gains of 0.69% and was up 102 points at 14964, while the Nifty advanced 0.71% and was up 31 points at 4385.
The breadth of the market was overwhelmingly positive. Of the 2,662 stocks traded on the BSE 1,476 stocks advanced, 1,104 stocks declined and 82 stocks ended unchanged. All the sectoral indices closed higher except Metal, HC, Bankex and CD stocks. The BSE IT index rose 3.31% at 4950 followed by the BSE Teck index (up 2.47% at 3814), the BSE CG index (up 1.25% at 12776), and the BSE IT index (up 0.44% at 4903).
Only nine blue chips failed to attract buying support while 21 Sensex stocks finished with gains. On the back of strong buying Satyam soared 5.40% at Rs489. TCS jumped by 4.44% at Rs1159, Wipro surged 3.02% at Rs519, Infosys added 2.85% at Rs1971, HDFC Bank advanced 2.10% at Rs1153, ACC moved up by 1.85% at Rs1041, NTPC rose 1.70% at Rs155, L&T scaled up 1.67% at Rs2370 and Gujarat Ambuja was up 1.67% at Rs131. Other heavyweights also gained 0.50-1% each. However, ICICI Bank shed 2.37% at Rs982 while Cipla ended marginally lower at Rs212, down 1.87%.
Among the IT stocks Silverline Technologies surged 9.94% at Rs13.60, HOV Services spurted 9.76% at Rs225, Helios jumped 9.26% at Rs158, Asia CERC added 6.21% at Rs196 and Zenith Info gained 5.00% at Rs566. In the tech pack Tech Mahindra vaulted 4.82% at Rs1464, TCS soared 4.44% at Rs1159, Zee Enterprises zoomed 3.84% at Rs311, Balaji Tele advanced 3.74% at Rs231 and Wipro gained 3.02% at Rs519.
Over 55.21 lakh DLF shares changed hands on the BSE followed by RPL (39.02 lakh shares), Cairn India (33.06 lakh shares), ICICI Bank (32.52 lakh shares) and IDBI (25.83 lakh shares).
ICICI Bank registered a turnover of Rs319 crore on the BSE followed by DLF (Rs318 crore), Reliance Communication (Rs143 crore), Reliance Industries (Rs131 crore) and SBI (Rs98.58 crore)
It was a historical day for the markets, with the barometer index BSE Sensex hitting the 15000 level. Except for the small hiccup in early trade, the market headed higher with the passage of time as buying momentum refused to die down. IT shares dominated the market throughout the day, ahead of their results. A fall in rupee aided the rally in IT scrips. Buying was also seen in cement stocks, while banking shares saw profit booking.
The benchmark 30-shares BSE Sensex was up 95.75 points to 14,957.64 as per provisional closing. It struck a record high of 15,007.22 at 13:21 IST. It had opened at 14,843.43 and slipped to a low of 14,826.56 at 10:07 IST, which was a fall of 35 points for the day. It oscillated in a range of 180 points for the day.
The S&P CNX Nifty also struck an all time high of 4,411 in late-afternoon trade, and settled 29.35 points higher at 4383.30, as per provisional close.
It has taken seven months for the Sensex to move from 14,000 to 15,000. The index had first hit 14,000 on 5 December 2006. In contrast, it had taken just 26 trading sessions for the Sensex to reach the 14,000 level after it had hit the 13,000-mark on 30 October 2006.
It took about 17 months for the Sensex to move from the 10,000 level to 15,000. The barometer index had first struck 10,000 mark on 6 February 2006.
On BSE, a deal took place in State Bank of India (SBI) at Rs 1,760 at 13:03 IST. It is also all time high for the stock. This is way above the ruling market price of Rs 1,570. And the quantity executed at that price was not minuscule: 16,762 shares changed hands in the stock at the price. The SBI stock settled 0.14% higher at Rs 1549, on 6.32 lakh shares.
India's wholesale price index rose 4.13% in the 12 months to 23 June 2007, higher than the previous week's increase of 4.03% due to a rise in some food and mineral prices, government data released noon today, 6 July 2007, showed.
The total turnover on BSE amounted to Rs 5,850 crore compared with a turnover of Rs 5,329 crore at about 14:30 IST.
The market breadth was strong, with small-cap and mid-cap shares also participating in the rally: 1,490 shares rose on BSE as against 1,176 that declined, while 86 were unchanged.
Among the Sensex pack, 25 advanced while the rest declined.
IT pivotals dominated gainers, with 4 from the top 5 Sensex gainers being IT stocks. They advanced on fresh buying after the Indian rupee today, Friday, 6 July 2007, turned weak and was quoted at 40.47/48 against the US currency due to suspected intervention by the central bank and dollar buying by oil refinery companies.
Satyam Computers galloped 4.60% to Rs 485.50 on 12.53 lakh shares and was the top gainer from the Sensex pack.
Infosys Technologies (up 3% to Rs 1974), TCS (up 4.17% to Rs 1156), and Wipro (up 2.95% to Rs 519), were other gainers from IT sector.
Wipro signed definitive agreements to acquire 100% shareholding in Unza Holdings (Unza), a Singapore-based fast moving consumer goods (FMCG) company, for an all-cash consideration of Rs 1010.20 crore (approximately $246 million). It recorded revenue of Rs 683.30 crore with double-digit operating margin for fiscal year ending on 30 April 2007. Transaction is expected to be closed by end July 2007. The company made this announcement after market hours on 6 July 2007
Shares from cement pack advanced today, Friday, 6 July 2007, after declining on Thursday 5 July 2007. They had surged recently on reports that cement firms have hiked prices by Rs 3-Rs 5 per 50-kilogram bag across India effective from 4 July 2007.
Ambuja Cements (up 1.86% to Rs 131.50), ACC (up 2.28% to Rs 1045), Birla Corporation (up 3.56% to Rs 284) and India Cements (up 3% to Rs 219.80) edged up from the cement sector.
Engineering and construction major L&T advanced 1.71% to Rs 2,371, after striking an all-time high of Rs 2,385.90. L&T will float five new companies to ensure better corporate governance as well as attracting talent. The companies will operate in L&T’s new business areas of power projects, boilers, turbines, water and shipbuilding.
Private sector banking major ICICI Bank was week throughout the day’s trading session. It was the top loser from the Sensex pack. The stock lost 2.70% to Rs 978.25 on 32.47 lakh shares. The 5.81-crore shares of ICICI Bank offered in its follow on public offer (FPO) that was completed last month, were listed on the bourses today. The company had priced its FPO at Rs 940 per share. Retail investors were offered the shares at a discount of Rs 50, i.e., at Rs 890 per share.
The issue was subscribed 11.5 times, with the qualified institutional buyers category bid 21.6 times. The issue was open from 19 June 2007 to 22 June 2007.
HDFC (down 1.74% to Rs 1916), Maruti Udyog (down 1.27% to Rs 795) and Cipla (down 1.50% to Rs 213) were the other losers.
Index heavyweight Reliance Industries (RIL) was up 0.27% to Rs 1,712.55, on 7.59 lakh shares. It moved in range of Rs 1703 – 1733.
Real-estate major DLF rose 0.17% Rs 571, on high volumes of 55.15 lakh shares. The stock had settled at Rs 570.05 on Thursday, 5 July 2007, at a premium of 8.57% over the IPO price of Rs 525.
Mahindra & Mahindra surged 2.83% to Rs 791 on renewed buying ahead of its entry into the BSE Sensex from Monday, 9 July 2007. In the market barometer index, the tractor & utility vehicle maker will replace two-wheeler maker Hero Honda. Hero Honda also rose 1.52% to Rs 699.85.
Most Asian markets rebounded from early fall. Shanghai Composite surged after initial fall. It surged 4.58% at 3,781.34. Hang Seng (up 1.25% to 22,531.74), Seoul Composite (up 0.72% to 1,861.01), Taiwan Weighted (up 0.43% to 9,188.31) and Straits Times (up 0.29% to 3,561.96), edged higher.
Majority of European indices were trading with gains.
US stocks closed mixed in post-holiday trading on Thursday, 5 July 2007, as a rebound in bond yields stifled Wall Street's excitement about new buyout activity and strength in the US service sector. The Dow fell 11.46 points, or 0.08%, to 13,565.84. The Standard & Poor's 500 index rose 0.53 points, or 0.03%, to 1,525.40, while the Nasdaq Composite index rose 11.70 points, or 0.44%, to 2,656.65.
1000, July 25, 1990
On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results.
2000, January 15, 1992
On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh.
3000, February 29, 1992
On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister, Dr Manmohan Singh.
4000, March 30, 1992
On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.
5000, October 8, 1999
On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election.
6000, February 11, 2000
On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006.
7000, June 20, 2005
On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL , Reliance Energy, Reliance Capital and IPCL made huge gains. This helped the Sensex crossed 7,000 points for the first time.
8000, September 8, 2005
On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.
9000, November 28, 2005
The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.
10,000, February 6, 2006
The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006.
11,000, March 21, 2006
The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.
12,000, April 20, 2006
The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of 12,040 points for the first time.
13,000, October 30, 2006
The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.
14,000, December 5, 2006
The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.
15,000, July 6, 2007
The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.
Company Size(billion rupees) Year
DLF Ltd. 91.88 2007
Cairn India Ltd. 57.88 2006
Tata Consultancy Services 54.20 2004
NTPC Ltd. 53.68 2004
Reliance Petroleum Ltd. 27.00 2006
Idea Cellular Ltd. 24.43 2007
Reliance Petroleum Ltd. (merged with Reliance Industries) 21.72 1993
Jet Airways (India) Ltd. 18.99 2005
Essar Oil Ltd. 16.39 1995
Suzlon Energy Ltd. 14.96 2005
The benchmark BSE 30-share Sensex pierced the psychologically important 15,000 level at about 13:20 IST today, 6 July 2007.
At 13:29 IST, the Sensex was up 101 points to 14,963. It struck a record high of 15,007.22 at 13:21 IST
It has taken seven months for the Sensex to move from 14,000 to 15,000. The index had first hit 14,000 on 5 December 2006. In contrast, it had taken just 26 trading sessions for the Sensex to reach the 14,000 level after it had hit the 13,000-mark on 30 October 2006.
On BSE, a deal took place in State Bank of India (SBI) at Rs 1,760. This is way above the ruling market price of Rs 1,570. And the quantity executed at that price was not minuscule: 16,762 shares changed hands in the stock at the price.
The deal partly helped the Sensex to achieve the 15,000 level, though the deal alone did not play a role as most of the Sensex constituents were firm today. Twenty-five of the 30 Sensex stocks were in the positive zone. Further, most of the sectoral and niche indices on BSE were in the green.
India's wholesale price index rose 4.13% in the 12 months to 23 June 2007, higher than the previous week's increase of 4.03% due to a rise in some food and mineral prices, government data released noon today, 6 July 2007, showed.
Two of the three major European markets --- London and France ---were in the green, whereas the German market edged lower.
Asian markets had recouped early losses and most were trading in the positive zone. Key benchmark indices in Hong Kong, Singapore, South Koera and Taiwan were up by between 0.2% to 1%.
BSE clocked a turnover of Rs 3,444 crore compared with a turnover of Rs 2,547 crore at about 12:30 IST.
Buying was conspicuous in IT and telecom stocks. Satyam Computer rose 3.4% to Rs 480, TCS 2.8% to Rs 1141, Wipro 1.8% to Rs 513.50, and Infosys 1.7% to Rs 1949.
Among telecom stocks, Bharti Airtel rose 2% to Rs 871 and Reliance Communications 1.9% to Rs 555.75.
The market breadth was strong: 1,678 shares rose on BSE as against 891 that declined, while 86 were unchanged.
The Sensex has crossed another landmark of 15,000, in mid-noon trades today.
The Sensex after a flat start, gained momentum in late morning deals on the back of renewed buying interest in technology stocks ahead of the earnings season.
Reliance Communications and TCS have rallied 2.5% each to Rs 559 and Rs 1,137, respectively.
Reliance Energy and Satyam have surged over 2% each to Rs 605 and Rs 474, respectively.
CLSA in their report on Indiabulls Real Estate (IBREL), say that it is one of the most aggressive growth stories in the Indian real estate sector. They believe that the company entered the real estate space in 2005 and now boasts of 4,000+ acres of landbank spread across Western, Northern and Southern part of the country. They feel that with US$360m raised through GDR closed on July 3 rd, the company can expand business operations further. The company's first two projects will be concluded in 2008 and SEZ opportunity can provide a big upside to the existing NAV of Rs584/share.
Reliance Capital (RCL) has arrived with a bang! Number 1 in the domestic asset management business, around 4x growth in market share in both life and general insurance in 18 months and a 1% share in broking business in three months assert the efficacy of the Reliance brand and its aggression. RCL offers the best vehicle to play India's fast expanding non-bank financial services market. The recipe for success is there.....strong capitalization with backing of a USD 38bn group, a plan to build one of India's finest distribution platforms and a sponsor with ability to swing deals at enviable valuations make RCL one of the best bets in the space. Though the stock has returned 72% in the past six months, the price does not discount RCL's blazing growth and its emergence as a formidable force. We believe the party has just begun; initiating coverage with an 18-month price target of Rs1,929.
Fingers in every growing pie: Insurance, asset management, broking and wealth management are the key high-growth sectors riding India's amazing demographic changes. RCL has made its mark in all the segments in a short period of time. RCL has an aggressive management team with relevant sector experience and proven track record to methodically execute its growth plan.
Building blocks in place: RCL has got the two key ingredients for success in the space; capital and distribution. A net worth of Rs53bn as also its pedigree (part of the ADA Group, India's fourth largest business house by market capitalization) impart significant leverage to RCL. Recognizing the importance of a vast distribution reach for the business, RCL is aptly ramping up its footprint across businesses. In the next 3-4 years, we see RCL having one of the largest networks of customer touch points.
The whole cake is mine: RCL owns 100% economic interest in its businesses, which would enable it to capture their full value. The sponsors have chosen to utilize the expertise within the country and consciously avoid partnerships with global majors (which have extracted disproportionate value from other local insurance players). We have valued RCL on sum-of-parts (FY10) basis as we believe the key businesses - life insurance and general insurance - will continue to outgrow private sector peers over the period. Our 18-month price target of Rs1,929 per share offers 70% upside.
HDFC Securities report on Balaji Telefilms:
Balaji Telefilms, BTL is India’s largest TV content producer. It clocked ~1800 programming hours during FY07. It has a presence on all major General Entertainment Channels (GEC) in the country and offers content in Hindi, Tamil, Kannada, Malayalam, and Telugu. With strong quality content, BTL is the best play in the domestic content production story.
BTL formed a 51:49 JV with Star TV in FY07. This JV will launch regional GEC channels in south Indian markets of TN, Karnataka, AP and Kerala. We expect ~1150 programming hours from this JV during FY09E, resulting in revenues of Rs 196 million for BTL.
We expect BTL to post a CAGR of 20% in revenues between FY07-09E and 19% in earnings. With the company reducing its exposure in sponsored programming (low margin), its JV with Star TV for regional programs and venture into international markets such as the Middle East, Sri Lanka and Indonesia, makes us believe the prospects of BTL are positive. At the CMP of Rs 223, the stock trades at a PER of 15x and 13x our FY08E and FY09E EPS estimates of Rs 15.26 and Rs.17.18. We have a price target of Rs 275. At our target price, the stock would trade at a PER of 16x our FY09E estimates. We initiate coverage with a “BUY” rating.
P-Sec report on Ashok Leyland:
Ashok Leyland reported flattish volume growth of 1.6% y-o-y on account of degrowth in domestic MDV goods segment of 24% y-o-y. MDV passenger goods segment grew by 318% y-o-y on account of low base during last year in June’06. The volume growth has been above our expectations. Ashok Leyland has recently entered in JV with Alteams Group of Finland to manufacture High Pressure Die Casting aluminium products in automotive and telecom sector. This venture will enable ALL to diversify and de -risk its product portfolio in long run; the company is already present in foundaries through Ennore foundaries. The stock trades at 9x its FY09P earnings. We recommend Accumulate.
The NIFTY futures saw a drop of 1.57% in OI with prices after falling sharply recovered indicating lot of fresh positions added near the support of 4300 levels on the long side indicating that further strength may be seen in the market as lot of short covering may be expected in the market . The Nifty July series futures discount disappeared indicating that lot of short covering happened in the market. The FII were sellers in index futures to the tune of 349 crs and buyers in index options to the tune of 203 crs indicating hedged positions built up by them. The PCR has changed from 1.47 to 1.51 levels indicates some strength may be seen in the market at current levels. IV in the market was 22.10 and HV was 17.89.
Among the Big guns, ONGC saw 3.66 % drop in OI with prices coming up indicating short covering seen in the counter suggesting some strength may be seen in the counter. Whereas RELIANCE saw drop in OI to the tune of 2.13% with prices recovering from lows indicating liquidation of positions in the counter suggesting that some consolidation may be seen in the counter.
In the TECH counters INFOSYSTCH saw rise of 2.81% OI with prices negative indicating that the counter may see further selling pressure emerging thus suggesting some weakness may be seen. TCS, SATYAMCOMP & WIPRO saw rise in OI with prices down indicating that these counters my see further weakness.
In the AUTO counters, M&M saw drop of 0.94% in OI with prices moving up suggesting shorts covering and fresh long positions built up in the counter at current levels suggesting strength may be seen in the stock . TATAMOTORS saw drop in OI with prices up indicating shorts covering their positions and fresh long positions built up in the counter suggesting strength may be seen in the stock.
In the Metal pack, TATASTEEL saw rise of 0.44% in OI with prices coming up indicating long positions built up in the counter suggesting some strength may be seen in the counter. SAIL saw drop of 2.08% in OI with prices coming up indicating shorts covering their positions and fresh long positions built up suggesting strength. HIINDALCO saw drop in OI with prices coming down indicating liquidation of long positions positions in the stock suggesting some profit booking may be seen in the stock. STER saw drop in OI with prices coming down indicating liquidation of long positions in the counter suggesting some profit booking may be seen.
We feel that the volume and built up in OI suggests that market may show some strength in the coming days as market took support of 4300 levels. One should trade with strict stop losses to be adhered too.
STOCKS TO WATCH : JPHYDRO,ICICIBANK & TATASTEEL.
The market is expected to consolidate at all time high levels, as the five day rally was halted on Thursday, 5 July 2007, on profit booking. The barometer index gained 449 points, or 3.11%, in five trading sessions to 14,880.24 on Wednesday, 4 July 2007, from its close of 14,431.06 on 27 June 2007.
The BSE 30-share Sensex settled with a decline of 18.35 points, or 0.12%, to 14,861.89, on Thursday, 5 July 2007.
WPI data for the week ending 23 June 2007 is expected by noon today, Friday, 6 July 2007. Annual inflation was 4.03% in the week ending 16 June 2007 - the lowest in 14 months. The fall in inflation has been attributed to decline in prices of certain essential food items and manufactured products and strong base effect.
Cues from the Asian markets were not encouraging either. Japan's Nikkei 225 index reversed direction after six straight days of gains as automakers such as Toyota Motor Corp. and machinery maker Komatsu declined. Japan's Nikkei slipped 0.63% at 18,107.50.
Hang Seng (down 0.59% at 22,121.80), Taiwan Weighted (down 0.31% at 9,120.31), Straits Times (down 0.16% at 3,546.17), edged lower.
However, South Korea's Seoul Composite was up 0.16% or 2.96 points at 1,850.75.
US stocks closed mixed in uneven post-holiday trading on Thursday, 5 July 2007, as a rebound in bond yields stifled Wall Street's excitement about new buyout activity and strength in the US service sector. The Dow fell 11.46 points, or 0.08%, to 13,565.84. Broader stock indicators were narrowly mixed. The Standard & Poor's 500 index rose 0.53 points, or 0.03%, to 1,525.40, while the Nasdaq Composite index rose 11.70 points, or 0.44%, to 2,656.65.
As per provisional data, foreign institutional investors (FIIs) were net buyers of Rs 148.99-crore equities on Wednesday, 4 July 2007, while domestic institutional investors (DIIs) also pumped Rs 305.43- crore in equities.
Market Grape Wine :
In House :
Nifty at a support of 4321 & 4295 levels with resistance at 4379 & 4390 & 4415 levels
IFCI Board meets today for Strategic Investor .
Bank Of England yesterday increased Int Rate by .25%.
Nifty at a support of 4295 ( below this level liquidate your momentum position )
Buy : Titan above 1342 target 1375 s/l of 1329 levels
Buy : Auropharma above 780.5 target 800 s/l of 773
Buy : Bhel in F&O above 1572 target 1610 s/l of 1560
Out House :
Markets at a support of 14765 & 14654 levels with resistance at 14919 & 14995 levels .
Buy : RIL & SBIN
Buy : Century & JPAsso
Buy : DLF & TV18
Buy : Kesoram & ACC
Buy : IDBI & IFCI
Buy : M&M & Maruti
Buy : Sail & Tisco
Buy : IBulls & IBReal & Unitech
Dark Horse : Kesoram , ACC , BajajHind , IBulls , IDBI , SBIN , IbullReal & Century
Bullet : Skumar & AsianElec with strict stop loss
TGIF : Thank God Its Friday : markets at 15000 levels book profits at all levels .
NIFTY (4354) SUPP 4331 RES 4376
BUY Colgate (391) SL 386
Target 399, 401
BUY Cummins (351) SL 347
Target 360, 362
BUY UTI Bank (630) SL 625
Target 638, 641
SELL Dish TV (103) SL 107
Target 97, 94
SELL Mphasis BFL (312) SL 317
Target 305, 302
Few of us get dizzy from doing too many good turns
The bulls have managed many good turns in recent times but appear dizzy for now. Looks like they may have to wait a while for the Sensex to get past 15k mark. Signals from the global markets are a bit weak this morning. Investors may also be cautious ahead of the corporate earnings. Infosys will kick off the season on July 11. The IT major's outlook going ahead given the appreciation in the rupee would be closely tracked. Any negative noises from Infosys and its fellow software firms could set the market back temporarily.
The ongoing consolidation and choppiness could also be because the key indices have rebounded sharply from the lows struck during the February-March crash. Both the Sensex and the Nifty are trading at all-time highs. Some more volatility and brief pain is likely in the near term. Even after the Sensex crosses 15k, there may not be much room to go further in the near term. Having said that, if money keeps pouring in, particularly from FIIs, and interest rates remain stable, bulls would be able to beat the odds.
Wipro is one stock to watch out for as its consumer care arm has acquired Singapore-based Unza. Earlier, Dabur India was to buy the company but dropped the plan. Reports also suggested that Godrej and Emami had thrown their hats in the ring for Unza.
IFCI's Board will meet today to consider the proposal for inviting preliminary bids for the induction of a strategic investor. The troubled state-run term lender will also announce its Audited Financial Results the quarter and year ended June 2007.
Cipla will be in the limelight amid reports that Reliance Lifesciences is contemplating acquiring the pharma major. Nestle India might also attract attention as a financial daily reports that the Swiss foods major is looking at inorganic opportunities in India.
RCOM is likely to gain amid reports of a proposed Rs30bn expansion for its existing GSM business. PTC is another stock to keep an eye on as Blackstone and Goldman Sachs may pick up 49% stake in the finance arm of the power trading firm.
Moser Baer is expected to extend gains as the Government has slapped anti-dumping duty on CD-Rs China, Hong Kong, Singapore and Chinese Taipei. Bajaj Auto could be in action on the back of price hikes and restructuring.
US technology stocks rallied on Thursday, lifted by strength in Apple, Google and other stocks hitting new highs. However, the broader market ended mixed ahead of Friday's widely awaited June jobs report.
The Dow Jones Industrial Average was down 11.46 at 13,565.84, snapping a three-session winning streak. But, the 30-share index ended off its lows for the session. The broader Standard & Poor's 500 index ended flat at 1,525.40. The Nasdaq Composite index rose 11.70 to 2,656.65, a fresh 6-1/2 year high.
On the economic front, investors' focus is on the closely watched June jobs report. Economists surveyed expect 135,000 new jobs and the unemployment rate to hold steady at 4.5%. Earlier, the Institute for Supply Management's services index unexpectedly rose in June, beating forecasts for a modest decline.
The number of initial claims for jobless aid filed last week increased by 2,000, according to the Labor Department.
Treasury prices fell, lifting the yield on the 10-year note to 5.14% from 5.04% late on Tuesday before the US holiday. The dollar rose against the euro and was higher versus the yen. COMEX gold for August delivery lost $4.80 to $650.60 an ounce.
Oil prices eased after the EIA's report on US fuel inventories. US light crude fell 31 cents to $71.10 a barrel on the New York Mercantile Exchange. The front-month contract was quoting 4 cents higher at $71.85 a barrel.
European shares declined after the European Central Bank's president hinted at further interest-rate hikes. The ECB left its key rate on hold at 4%, as expected. The Bank of England too did as market had expected, raising its key rate by a quarter of a percentage point, to 5.75%.
The Pan-European Dow Jones Stoxx 600 index lost 0.6% at 395.16. The German DAX closed down 1.1% at 7,987.13 , the French CAC-40 lost 0.6% at 6,059.53 and the UK's FTSE 100 slipped 0.6% to 6,635.20.
In the emerging markets, the Bovespa in Brazil was up 0.4% at 55,932 while the IPC index in Mexico lost 0.07% at 32,177 and the RTS index in Russia jumped 1.5% to 1973.
Key Asian markets were down this morning. The Nikkei in Tokyo was down 101 points at 18,119 while the Hang Seng in Hong Kong dropped 115 points to 22,137 and the Straits Times in Singapore fell by 7 points to 3544. The Kospi in Seoul was flat at 1845.
Markets registered a flat end to a highly volatile session. The benchmark Sensex gyrated 230 points and NSE Nifty nearly by 70 points. The Mid-Cap and the Small Cap index were under pressure anther other like IT, Pharma and FMCG index also lost ground. Infosys was the major dragger as the scrip dragged the Sensex index by 12 points. However, heavyweights like ICICI Bank, L&T and Tata Steel were the major gainers as it aided vital support to the key indices from slipped in to deep red. Finally, the 30-share Sensex down 18 points to close at 14861 and NSE-50 Nifty was down 5 points to close at 4353.
DLF got listed on the bourses with a premium of Rs43 at Rs568.80 on the Bombay Stock Exchange with a premium of 8%. The scrip ended up 8.5% to Rs570 touching an intra-day high of Rs714 and a low of Rs505 and recorded volumes of over 3,00,00,000 shares on BSE.
BEML dropped by 1% to Rs1233 after the company announced that it has fixed its issue price at Rs1075. The scrip touched intra-day high of Rs1260 and a low of Rs1210 and recorded volumes of over 1,00,000 shares on NSE.
Bajaj Auto slipped by 1.4% to Rs2091. The company announced that they have raised price by Rs500 on each model. The scrip touched intra-day high of Rs2128 and a low of Rs2085 and recorded volumes of over 1,00,000 shares on NSE.
Asian Electronic is locked at 5% upper circuit to Rs957.30 after the company announced that it would split each share into two. The scrip has touched intra-day high of Rs957.30 and a low of Rs876 and has recorded volumes of over 1,00,000 shares on NSE.
TV 18 was flat at Rs907. The company announced that the Board of Directors of the company has approved 1:1 bonus. The scrip touched intra-day high of Rs949 and a low of Rs907 and recorded volumes of over 2,00,000 shares on NSE.
Ashok Leyland gained by 1% to Rs38 after the company announced its June sales at 6510 units (up 2%). The scrip touched intra-day high of Rs38 and a low of Rs37 and recorded volumes of over 29,00,000 shares on NSE.
Indus Fila surged nearly by 6% to Rs221 after the company acquired 51% stake in Indus Garments for Rs93.5mn. The scrip touched intra-day high of Rs245 and a low of Rs210 and recorded volumes of over 18,00,000 shares on NSE.
Technology stocks were under pressure as Indian rupee further strengthens against the US Dollar at Rs40.46 per US Dollar. Index heavy weight Infosys was down by 0.7% to Rs1916, Satyam Computer slipped b 1.6% to Rs464 and Wipro slipped 1% to Rs504. Mphasis, Polaris and i-Flex were the major losers among the Mid-Cap stocks.
Cement stocks were a mixed bag today after being in the limelight. Grasim was up by 0.4% to Rs2748, ACC gained by 0.6% to Rs1028 and Gujarat Ambuja was flat at Rs129. However, Mangalam Cement declined by over 2% to Rs165.
Select Auto stocks ended firm in a volatile market. M&M gained by 2.8% to Rs769, Maruti was up by 1.8% to Rs805, Tata Motors advanced by 1.2% to Rs709 and TVS Motors surged by over 3.2% to Rs62 after the company announced that it expects Motorcycle sales at 1.7mn this year.
Pharma stocks were in poor health. Ranbaxy was down 2% to Rs360, Cipla declined by 1% to Rs216, Wockhardt declined 1.5% to Rs386 and Lupin dropped by 1.5% to Rs722.
FIIs were net buyers of Rs1.49bn (provisional) in the cash segment yesterday while the local institutions pumped in money to tune of Rs3.05bn. In the F&O segment, foreign funds were net sellers of Rs6.92bn yesterday.
On Wednesday, FIIs were net buyers of Rs8.25bn in the cash segment. Mutual Funds were net sellers at Rs4.27bn on the same day.
Classic Diamond and IFCI.
Major bulk Deals:
Deutsche Secs has bought Evinix and Tricom India; Merrill Lynch has picked up Jayant Agro and Morgan Stanley has sold Vijaya Shanti.
UFLEX Limited: A.R. Leasing Pvt. Ltd. (part of the promoters' group) has purchased from open market 26513 equity shares of the company on 27th & 28th June, 2007.
TCI Finance, DS Kulkarni, GV Films, Anant Raj, ION Exchange and Surana Industries.
DMC International, Shree Precoated, Zenotech Labs, Nirlon, Swan Mills, Prime Focus, Goldstone Tech, Agro Tech, Asian Electronic, Evinix, Classic Diamond, Heritage Foods, Genus Overseas and IID Forgings.
Delivery Delight (Rising Price & Rising Delivery):
Andhra Bank, Apollo Tyres, Castrol India, Colgate, Dr Reddys Laboratories, Hero Honda Motors, ICICI Bank, Jain Irrigation, Nalco, SCI, Tata Power, TVS Motor, Union Bank of India, UTI Bank and Voltas.
J&K Bank, Bajaj Auto, I-Flex Solutions, Bank of India, Siemens, Bank of Baroda, Wockhardt, Sun Pharmaceuticals, HDFC, Corporation Bank and Indian Hotels.
Major News & Announcements:
HC adjourns decision on KG Gas to July 12 – Reports
L&T to start 3 units for railways, power and ship building
Hero Honda delays Factory start on slowdown in Sales
Maruti plans to expand Manesar plant engine-making capacity
BEML fixes issue price at Rs1075
Bajaj Auto raises price by Rs500 on each model
Indus Fila acquires 51% stake in Indus Garments for Rs93.5mn
Sadbhav Engineering secures Rs328bn contract
Asian electronic to split each share into two
TV 18 Board approves 1:1 bonusAshok Leyland June sales at 6510 units (up 2%)
Nifty and Sensex have exhibited Doji candlestick.
Technically, one may use the level of 4300 (Nifty) and 14700 (Sensex) as the stop loss level.
Nifty faces resistance at 4390 and Sensex at 15050.
Nifty Range 4300 to 4390.
BSE Smallcap and BSE Midcap also exhibited bearish candlestick following reversal candlesticks the day before.
CNX IT has closed Negative.
In the Punter's zone we have a Sell in Peninland, Parsvath and Ansal infra.
In the Technical call section, we have a Buy in RCOM, Sail and Voltas.
Daily Technical Analysis
Citigroup in their daily tech,
Nifty — The index opened on a positive note, after which it dipped toward 4,312 during the afternoon trading. It saw a recovery during the remaining part of the day’s session. The index ended the day down 4 points.
Trading around a high of 4,363 — The index is trading around a 4,363 high amid intra-day volatility. Intra-day rise is facing resistance around 4,363. Until the index stays below the 4,363 high on a closing basis, range-bound movement with high intra-day volatility should be expected.
Support and resistance — The index has support around 4,314 (low of 3 July 07) and 10dma at 4,305. Intra-day dips should find support around these levels. The resistance level is around 4,386 (high of 4 July 07).
Conclusion — Range-bound movement within 4,305-4,386 band can be expected.
Boeing Co. unveils its lightweight 787 Dreamliner on Sunday, the first commercial jet predominantly made of carbon-composite materials and the planemaker's first all-new airliner in more than a decade.
The mid-sized aircraft -- seating 210 to 330 people in its three planned models -- promises 20 percent fuel savings for airlines and a new standard of comfort for passengers.
Operators and lessors have jumped at the jet, placing 642 orders worth about $100 billion at list prices since it went on sale in 2004.
First and foremost, the new plane will save airlines money and help them toward greater profits, according to Richard Aboulafia, a consultant at aerospace specialists the Teal Group. But it will also benefit travelers.
"It means more frequency, more point-to-point routes and fewer changes at big hub airports," said Aboulafia. "Anyone who changes planes regularly at Heathrow, Narita or Frankfurt can be grateful."
The first of the new planes is set to be rolled out of Boeing's Everett, Washington, plant on Sunday, in front of about 15,000 staff, customers and suppliers.
Boeing even has a theme song for the plane to be played at the gala event, hosted by former television news anchor Tom Brokaw.
The public rollout of the plane was purposefully scheduled for Sunday -- 7/8/07 in U.S. date abbreviation -- but the aircraft will not actually fly until August or September, when its airborne tests are due to start.
The plane, whose fuselage is spun from carbon composites and baked in an enormous oven, is expected to save operators 20 percent on fuel costs because of its lower weight and state-of-the-art engines.
The benefit for passengers is that composite materials do not rust or fatigue, so air in the cabin can be more humid and the windows larger. Boeing is also touting softer lighting that automatically adjusts with the time of day or night.
The 787 is Boeing's first all-new plane since its 777 minijumbo entered service in 1995. Boeing's Next Generation 737, an updated version of its popular single-aisle plane, entered service in 1998.
Futures settle at premium on debut
Nifty July 2007 futures settled at 4355, a marginal premium of 1.05 points as compared to spot closing of 4,353.95
Real estate major DLF July 2007 futures settled at premium, at 574, compared to the spot closing of Rs 568. It was the top traded counter with turnover of Rs 2517.30 crore. The stock debuted today in F&O segment with lot size of 400 shares. It hit a high of 578.40 and low of 544.15 today.
Reliance Industries July 2007 futures settled at a premium, at 1722.10, compared to the spot closing of Rs 1713.20.
SBI July 2007 futures settled at a sharp premium, at 1560.10, compared to the spot closing of Rs 1545.15.
In the cash market, the S&P CNX Nifty lost 5.35 points or 0.12% at 4,353.95. It had hit an all-time high of 4,386.45 on Wednesday, 4 July 2007.
Qualified Institutional Buyers (QIBs) - 74.0398 times
Non Institutional Investors - 88.6939 times
Retail Individual Investors (RIIs) - 38.0776 times
Employee Reservation - 0.8215 times
OVERALL - 60.87 times