India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Thursday, September 27, 2007
Ram Setu
The Lord surveyed the Ram Setu and said "Hanuman, how diligently and strenuously you and your vanara sena had built this bridge several centuries back. It is remarkable that it has withstood the ravages of the climatic and geographical changes over centuries. It is indeed an amazing feat especially considering the fact that a bridge at
Hyderabad built by Gammon using latest technology collapsed the other day even before they could stick the posters on its pillars."
Hanuman with all humility spoke "Jai Sri Ram, it is all because of your grace. We just scribbled your name on the bricks and threw them in thesea and they held. No steel from TISCO or cement from Ambuja or
ACC was ever used. But Lord, why rake up the old issue now." Ram spoke "Well, Hanuman some people down there want to demolish the bridge and construct a canal. The contract involves lot of money and lot of money will be made. They will make money on demolition and make more money on construction. "
Hanuman humbly bowed down and said "Why not we go down and present our case ? "
Ram said "Times have changed since we were down there. They will ask us to submit age proof and we don't have either a birth certificate or school leaving certificate. We traveled mainly on foot and some times in bullock carts and so we don't have a driving license either. As far as the address proof is concerned the fact that I was born at Ayodhya is itself under litigation for over half a century, If I go in a traditional attire with bow and arrow, the ordinary folks may recognize me but Arjun Singh may take me to be some tribal and, at the most, offer a seat at IIT under the reserved category. Also, a God cannot walk in dressed in a three-piece suit and announce his arrival. It would make even the devotees suspicious. So it is dilemma so to say."
"I can vouch for you by saying that I personally built the bridge."
"My dear, Anjani putra, it will not work. They will ask you to produce the lay-out plan, the project details, including financial outlay and how the project cost was met and the completion certificate. Nothing is accepted without documentary evidence in India. You may cough but unless a doctor certifies it, you have no cough. A pensioner may
present himself personally but the authorities do not take it as proof. He has to produce a life-certificate to prove that he is alive. It is that complicated."
"Lord can't understand these historians. Over the years you have given darshan once every hundred years to saints like Surdas, Tulsidas, Saint Thyagaraja, Jayadeva, Bhadrachala Ramdas and even Sant Tukaram and still they disbelieve your existence and say Ramayana is a myth. The only option, I see, is to re-enact Ramayana on earth and set the government records straight once for all."
Lord smiled "It isn't that easy today. Ravan is apprehensive that he may look like a saint in front of Karunanidhi. I also spoke to his mama Mareecha, who appeared as a golden deer to tempt Sita maiyya when I was in the forest and he said that he won't take a chance of stepping on earth as long as Salman Khan is around."
Via Another Forum
Market Close: Nifty crosses 5K.. Now what ?
Just 6 sessions and the journey from 16K to 17K was completed yesterday. It was also the fastest 1K run the market had seen till now. Today was also a historical day as the Nifty passed its 5K in the early sessions after almost 10 months it passed the 4K mark. The indices zoomed up in the early sessions sparked by a rally across global markets. As the day progressed indices lost some of its early gains by mid sessions as investors booked profits at high levels. Indices traded in a ranged manner for most of the time but surged at the end to touch new all time high. Also the short covering ahead of September 2007 F&O expiry helped the market close at all time high.
Most of the sectoral indices edged higher on renewed buying interest shown by the investors. Metals and IT sectors lead the way as they ended up above 3%. IT sector suddenly saw some buying even though rupee traded at 39.71 against Dollar. Appreciating Rupee would put more pressure on the Tech stocks as almost 50% of revenues are from US. The rally was seen due to central bank's recent measures to tame the appreciating rupee as it relaxed overseas investment by local companies, mutual funds and individuals. Small and Mid caps also ended in green along with its front liners. Today US would release economic data. All depends on how the numbers come and importantly how will the market react to it.
Sensex ended the day up by 229 points at 17150.561. It was helped up by gains in Rel Energy (1117.25,+9 percent), TISCO (794.6,+6 percent), Infosys (1911.75,+5 percent), HDFC Bk (1433.3,+4 percent) and ONGC (971.65,+4 percent). Restricting the gains were HLL (218.8,-3 percent), Guj Ambuja (145.15,-2 percent), RCVL (582.8,-1 percent), Hindalco (164.1,-1 percent) and Grasim (3426.95,-1 percent).
Kewal Kiran Clothing Ltd (KKCL) was in the limelight for the day on the back that it is likely to acquire a mid size apparel brand. According to sources the company plans to acquire a brand in the kids wear segment where it has no presence yet. The acquisition would be funded through a combination of internal accruals and debt and if required, equity placement. The company is also looking to add a design house or become an exclusive licensee of an international brand. News are making rounds that it is also looking at forging a joint venture with a foreign player to get its brand in the country. At present KKCL earns 5 % of its total revenue from exports. Its K-Lounge setup contributes 20 % and the flagship denim brand Killer brings in about 50 %. The company has introduced three men's apparel brands focused on different age groups in the last few years. Company is expanding its exclusive K-Lounge stores to 143 by the end of December from 74 stores currently. Currently, around 53 % of the company's retail outlets are concentrated in the western region. Following the expansion the West would have 36 % of the outlets, while North would have 32 %, South (22 %) and East (11 %). The stock rallied and ended up by 5%. Do read the note on our site for a better view on the company.
Educomp Solutions, India's largest education company by market value, was rated 'sell' by Citigroup with target of Rs 2,380. The market reacted to it and the stock ended down by 4.7%. The educational business is seen the best sector with government also spending high for educating the people. The approved outlay for education in the 10th Plan is around Rs. 30,000 crores while for secondary education and higher (including vocational training is Rs. 13825 crores. The Government of India has spent over Rs.10,000 crores (USD 2.2 billion) on Elementary Education in the country during 2005-06 and around Rs 2563 crores on Higher/Secondary Education. Education in the country is funded through a 2% Education Cess and other Budgetary Allocations. Some companies have been shifting its focus on education. Core Projects and Technologies, an IT services company has shifted its focus to education services through the inorganic route. Educomp being foremost and only listed company was pampered by the investors. But now competition has started building.. Everonn, Navneet and now Core projects would be giving some tough competition to Educomp. Core projects at Rs 196 is valued at nearly 22 times estimated FY08 earnings while Educomp and Everonn trade at over 85 times estimated FY08 earnings. Do read the detailed note on Educomp, Everonn and Navneet. Note on Core Projects will follow soon..
Technically Speaking: Market zoomed in early session however was ranged for the whole day due to expiry of derivatives. Sensex touched intraday high of 17188 and low of 17108. Overall breadth was in favor of Declines. Declines stood at 1458 while Advances at 1286. High volumes have been noticed over last 4 days. Today also the market churned Rs 7727 crores. It was FNO expiry and the psychological level of 5000 was crossed for the Nifty as well. The rise in the Sensex was 162% of the fall which took place between 24th July and 17th August. Expect markets to take a breather before any further direction can be taken.
Post Market Commentary
The market closed the session on a strong positive note as BSE Sensex surged by 229.17 points to close at 17,150.56 while Nifty grew by 60.05 points to close at 5000.55. Both the benchmark indices i.e. BSE Sensex and Nifty touched their lifetime highs. Sensex touched the intraday high of 17,188.40 while Nifty crossed psycholological mark of 5000 during the trading session. The market rallied towards the end on the back of strong global cues. Overall, the market breadth was little weak as 1477 stocks were closed in red and 1298 stocks were ended up in green while 57 stocks remained unchanged in BSE. The BSE mid cap fell 20.66 points to close at 7,331.96 while Small cap manages to close with gains of 17.21 point at 9,046.55.
BSE Metal index surged by 416.96 points to close at 13,502.60 as Sterlite Industries (6.48%), Tata Steel (5.82%), NALCO (4.96%), JSW Steel (2.36%) and SAIL (0.47%) are closed in green.
BSE IT index closed firmly at 4,643.43 as it was up by 141.46 points. Infosys (4.79%), HCL Tech. (3.05%), Satyam (2.56%), Tech Mahindra (2.20%), TCS (1.99%) and Wipro (1.26%) closed in green.
BSE bankex index improved by 111.72 points to close at 9,229.52 as HDFC Bank (4.26%), SBI (2.05%), AXIS Bank (1.61%), ICICI Bank (0.97%) and Andhra Bank (0.74%) closed higher.
BSE oil & gas index grew by 22.16 points to close at 9,639.10 as ONGC (3.74%) and GAIL India (1.15%) closed in green while IOCL (3.09%), RPL (2.77%), HPCL (2.05%) and BPCL (1.27%) closed in red.
BSE Capital goods index closed higher by 36.72 points at 14,691.07 as BEML (2.96%), BHEL (2.60%) and Suzlon energy (0.94%) closed higher while ABB (1.93%), Siemens (0.51%) and L&T (0.21%) closed lower.
BSE Health Care Index closed up by 28.87 points at 3,720.23 as Glennmark (4.90%), Cipla (3.16%), Nicholas Piramal (3.24%), Pfizer (1.38%) and Dr Reddy (1%) closed in positive.
Rakesh Jhunjhunwala, Nirmal Jain, Nilesh Shah, Parag Parikh and more
17K’s a reality. So, what do you do now? Stay invested, or go cash? And, where do you fish for new opportunities? The million-dollar question that could now be dominating the minds of countless investors is: What to do with the pile of notional wealth they are sitting on. Does there exist enough investment opportunities even at current levels? If yes, what sectors one should look at. We looked around for answers to these and many other questions.
Though general returns may shrink, panelists felt investors will come across many good opportunities irrespective of the Sensex levels. Most of them, however, are not comfortable about the idea of classifying companies as tier-I and tier-II for investment purpose.
"One should not approach the market with the view that one will invest only in mid-cap or large-cap stocks. We should constantly look around for good opportunities," said Rakesh Jhunjhunwala.
The focus should also be on growth and value stocks, according to some. "I would have no problem buying companies that have high PEs if I estimate their growth correctly," said Narayan Ramachandran.
However, Parag Parikh feels it is the value of stock which matters most while making an investment decision. Nilesh Shah is concerned that managements have started diluting shareholders’ value big time.
"The company could be tier-I or tier-II, but it should have top-class management," he said. Nirmal Jain, however, believes that there are more opportunities in tier-II companies as there are a large number of companies listed in this segment.
There was a quick round of discussion on what sector-specific approaches investors should adopt. Here’s what they said:
Nirmal Jain : Capital goods, infrastructure and power equipment is where I would be looking to put my money in. Avoid IT stocks and allocate 30-40% to real estate and gold.
Narayan Ramachandran: IT would be my top bet, also a solid growth sector like telecom. I would also take an exposure to four-wheeler stocks.
Rakesh Jhunjhunwala: I feel whenever there is a correction in world markets, followed by a bull phase, commodity stocks will see the maximum expansion in PE. I see no reason why commodity stocks should quote the PE they are quoting at. Banking could throw up a surprise, retail and infrastructure look good bets, but they are fairly priced at these levels. I will put 2-3% of my investments in physical gold,
Parag Parikh: I don’t really believe in the sector theory, but I would be looking to put my money in sectors that are not the fad of the moment. Pharma looks good.
Nilesh Shah: Rather than sectors, I would bet on companies that stand to gain the most from domestic consumption, and run by good managements. I would advise diversification into all kinds of assets — equity, property, gold, debt, art, and also international equities
Andrew Holland: Go for Logistics, tourism and banks.
Vallabh Bhanshali: “Equity is the best researched class. I would prefer equity and cash in my portfolio. If an investor can understand some of the other asset classes, only then should he go for it.”
BSE, NSE seek explanation from RNRL
Stock market authorities have sought explanation from the Anil Ambani group firm Reliance Natural Resources (RNRL), whose share price has nearly doubled in the past few days, on media reports about its business plans.
Both the Bombay Stock Exchange and the National Stock Exchange brought the company under scanner last week and early this week to ascertain if the price movement was normal.
From Rs 52 at close on September 19, the share price hit a one-year high of Rs 103 during trading on September 25, although it ended down at Rs 94.85 that day.
There have been media reports that it plans to sell stake in coal-bed methane blocks to strategic investors and has applied for starting city gas distribution projects.
NSE wrote to company officials on September 21 after reports that it plans to start CGD projects in various cities. The company's share price surged by a whopping 35 per cent that day to settle at Rs 76.70 from Rs 56.80 a day ago.
The scrip soared another 22 per cent on September 24 to Rs 93.55. Incidentally, there is no circuit filter on the scrip.
Similarly, turnover rose to a whopping Rs 673.47 crore on September 21 when more than 9.5 crore shares changed hands. This was against Rs 136.5 crore in the previous day when only 2.4 crore shares were traded. On September 24, it recorded a turnover of about Rs 457 crore.
The company informed the bourses on September 24 that its affiliate firm Reliance Fuel Resources Ltd did submit an application to the Petroleum Ministry for setting up such projects in Mumbai, Delhi and the national capital region.
Record rally for seventh day in a row
After the Sensex breaking past 1,000-point milestone within record 6 days, the market rose for the seventh session in a row today with a gain of over 267 points to a record high of 17,188. The market opened 139 points above its previous close and zoomed to touch the early high of 17,158. The Sensex remained steady on the back of firm metal and information technology stocks. Strong support also came from Reliance Energy, Tata Steel and few IT stocks. After exhibiting some range-bound moves the Sensex rallied sharply towards the close and wrapped the session at 17,151, up 229 points. The broad based Nifty also hit the record high of 5,016 and the index ended the session by adding 60 points at 5,001.
However, the market breadth was negative. Of the 2,832 stocks traded on the BSE, 1,477 stocks declined, 1,298 stocks advanced and 57 stocks ended unchanged. Among the sectoral indices, the BSE Metal index flared up by 3.19% followed by the BSE IT index (up 3.149%), the BSE Teck index (up 1.72%) and the BSE Bankex index (up 1.23%). However, the BSE FMCG index ended in the negative territory.
Most of the index heavyweights closed with substantial gains. Reliance Energy showed solid strength today and shot up by 8.87% at Rs1,117. Among the other major gainers Tata Steel surged 5.82% at Rs795, Infosys vaulted by 4.79% at Rs1,912, HDFC Bank spurted 4.26% at Rs1,433, ONGC jumped by 3.74% at Rs972, Cipla scaled up by 3.16% at Rs176, ACC advanced by 2.82% at Rs1,189, BHEL added 2.60% at Rs2,041 and Satyam Computer rose 2.56% at Rs442. Among the laggards, HUL slumped by 2.86% at Rs219, Ambuja Cement dropped 1.69% at Rs145 and Reliance Communication slipped 1.21% at Rs583.
Over 6.29 crore Himachal Futuristic Communication shares changed hands on the BSE followed by Tata Teleservices (2.95 crore shares), IKF Technologies (2.85 crore shares), Reliance Natural Resources (2.42 crore shares) and Ispat Industries (1.82 crore shares).
Valuewise, Sintex Industries registered a turnover of Rs614 crore on the BSE followed by Reliance Natural Resources (Rs215 crore), Indiabulls Real Estate (Rs201 crore), Reliance Energy (Rs200 crore) and Tata Steel (Rs192 crore).
Sensex settles above 17,000; Nifty ends above 5,000
Market surged at the fag end of the trading session to touch new all time high, on short-covering ahead of expiry of September 2007 derivatives contracts. Both the niche indices BSE Sensex and S&P CNX Nifty struck all time highs in late trade. After the Sensex breached the 17,000 mark yesterday, the Nifty scaled the 5,000 level today.
Domestic bourses rose today, 27 September 2007, as a part of rally across global markets as weak US economic data reinforced expectations for another interest rate cut from the Federal Reserve, following a steep half-point reduction to 4.75% last week.
The 30-shares BSE Sensex up 229.17 points or 1.35% at 17,150.56, an all time closing high. It opened with upward gap of 138.22 points to 17,059.61. Its low for the day was at 17,018.56. It hit an all time high of 17,188.40 in late trade.
From a recent low of 13,989.11 on 21 August 2007, Sensex surged 3,161.45 points or 22.59% in just 27 trading sessions to 17,150.56 on 27 September 2007. FII buying boosted the bourses in this period.
The S&P CNX Nifty was up 60.05 points or 1.22% at 5,000.55, an all time closing high. It struck an all time high of 5,016.40 in late trade. It took a little under ten months for Nifty to reach 5,000 from 4,000. It had first hit the 4,000 mark on 1 December 2006.
Derivative contracts for September 2007 series expired today, 27 September 2007. The Nifty October 2007 futures settled at 5,004.95, a premium of 4.40 points as compare to spot closing
The market breadth was negative on BSE with 1458 shares declining as compared to 1286 that advanced. 61 remained unchanged. The breadth was positive till mid-afternoon trade
The BSE Mid-Cap index was down 0.28% to 7,331.96. It struck an all time high of 7,437.51 earlier in the day. The BSE Small-Cap index hit all time high of 9,127.42. It rose 0.19% to 9,046.55. Both these indices underperformed the Sensex.
All the sectoral indices on BSE edged higher expect the BSE FMCG index. BSE TecK index (up 1.72% to 3,784.50), BSE Metal Index (up 3.19% at 13,502.60), BSE IT Index (up 3.14% at 4,643.43), outperformed the Sensex.
However BSE Oil and Gas Index (up 0.23% at 9,639.10), BSE Consumer Durables index (up 1.17% to 4,800.81), BSE PSU index (up 1.04% to 8,139.21), BSE Capital Goods Index (up 0.25% at 14,691.07), BSE Health Care Index (up 0.78% at 3,720.23), BSE Realty index (up 0.65% to 9,031.00), BSE Auto Index (up 1.06% at 5,270.66), and BSE FMCG Index (down 0.80% at 2,120.28) were underperformers.
The total turnover on BSE amounted to Rs 7727 crore as compared to Rs 7,750.07 crore on Wednesday, 26 September 2007.
The NSE F&O turnover was a record Rs 86226.41 crore as compared to Rs 78536.17 crore on Wednesday, 26 September 2007
Among the 30-member Sensex pack, 23 rose while the rest slipped
India’s second largest power utility company in terms of revenue Reliance Energy (REL) surged 8% to Rs 1108.30. It was the top gainer from Sensex pack. As per reports REL is believed to be restructuring its businesses under three verticals — utility, infrastructure and real estate.
IT stocks rallied for the second day in a row after central bank’s recent measures to tame appreciating rupee. Infosys Technologies (up 5.25% to Rs 1,920), TCS (up 1.92% to Rs 1,061), Satyam Computer Systems (up 2.43% to Rs 441.80), and Wipro (up 1.19% to Rs 460) edged higher. On Tuesday, 25 September 2007, Reserve Bank of India relaxed overseas investment by local companies, mutual funds and individuals in a bid to tame the rupee's rise.
Auto stocks edged higher. Tata Motors (up 1.43% to Rs 750), Bajaj Auto (up 1.14% to Rs 2,521) and Hero Honda Motors (up 0.55% to Rs 740.60), rose.
India’s largest oil explorer in terms of revenue Oil & Natural Gas Corporation (ONGC) surged 3.77% to Rs 972. The government will raise administered prices for gas produced from assets awarded to state-run firms in a month's time, before the launch of a new licencing round, M.S. Srinivasan, oil ministry secretary, said on Wednesday.
World’s sixth largest steel manufacturer Tata Steel surged 6.81% to Rs 802. It hit a 52-week high of Rs 807.90 on BSE today.
Bharat Heavy Electricals (Bhel), the country’s largest power equipment maker by sales rose 2.37% to Rs 2,035. It hit a all time high of Rs 2045 on reports that it has won a Rs 765 crore turnkey order from Steel Authority of India (SAIL) to set up a 62.2 mega watt captive power plant in Burnpur, West Bengal. Reports further said Bhel’s order book stood at Rs 65,000 crore. The project is expected to be commissioned within 29 months.
Tata Motors, the nation’s top truck and bus maker in terms of sales rose 1.50% to Rs 750.50. Deutsche Bank is bullish on the stock and has maintained buy rating with target price of Rs 920.
India's largest private sector lender, ICICI Bank, rose 0.55% to Rs 1025. It hit an all time high of Rs 1039 on BSE. As per reports it sold $2 billion of five-year notes in the Rule 144a private placement market.
India’s largest company in terms of market capitalisation and operator of world's third largest refinery at Jamnagar, Gujarat, Reliance Industries (RIL) saw high volatility today. It slipped from day’s high of Rs 2364 to a low of Rs 2321. It settled 0.56% higher at Rs 2335 on 5.06 lakh shares. RIL is reportedly laying off 1,000 staff in the country's most populous state of Uttar Pradesh after failed attempts to reopen Western-style supermarkets, which closed after protests from small traders.
Ambuja Cements, the country’s second largest cement manufacturer in terms of sales extended early fall. It lost 2.47% to Rs 144 on 7.41 lakh shares. It was the top loser from Sensex pack
Hindustan Unilever (down 2.23% to Rs 220), and Reliance Communications (down 1.08% to Rs 583.55) were the other losers from Sensex pack
Sintex Industries rose 2.31% to Rs 362.90 on the back of massive block deal of 1.23 crore shares on BSE at Rs 355 per share by 14:34 IST. It was the top traded on BSE with total turnover of Rs 622.86 crore.
Reliance Natural Resources (Rs 215.41 crore), Indiabulls Real Estate (Rs 201.81 crore), Reliance Energy (Rs 199.30 crore) and Tata Steel (Rs 192.20 crore), were the other turnover toppers in that order.
Shares from sugar sector declined on profit booking after the recent rally. Dwarikesh Sugar (down 1.59% to Rs 62), Sakthi Sugar (down 2.90% to Rs 85.50), Triveni Engineering (down 7.2% to Rs 108), Balrampur Chini Mills (down 3.91% to Rs 75), Shree Renuka Sugars (down 1.78% to Rs 693.95), and Bajaj Hindustan (up 9.77% to Rs 171.40) plunged
Emaar MGF files for IPO
To offer 11.74 crore shares via IPO
Emaar MGF Land plans to offer up to 11.74 crore shares through an initial public offering of shares in India at a price to be decided by the book-building process.
The real estate company, a joint venture of Dubai's Emaar Properties and Indian real estate developer MGF Developments, has filed a prospectus with Sebi to sell shares with a face value of Rs 10.
The proposed number of shares to be offered include a pre-IPO placement and shares issued upon conversion.
Enam Securities and DSP Merill Lynch are the book-running lead managers for the IPO.
The company plans to construct residential, retail and hospitality properties in India.
Sistema, DLF join the telecom race
Russian conglomerate Sistema has finalised an agreement with Indian telecom services provider Shyam Telelink, the unlisted telecom services arm of the Shyam Telecom group, to acquire 74% in the company. The deal values Telelink at a conservative $114 million.
Simultaneously, Shyam has applied to the Department of Telecom (DoT) for unified access service licences (UASL) to operate networks in 21 Indian states.
Shyam’s application comes even as real estate major DLF Ltd today confirmed that it will apply for telecom licences by Friday, the fourth real estate company to have applied for the same purpose. IndiaBulls Real Estate Ltd, Unitech Ltd and Parsvnath Developers are the others. This takes the total number of applicants for telecom licences to 13, including the Reliance Anil Dhirubhai Ambani- backed Swan and Cheetah Telecom, HFCL, Ruia-backed BPL Ltd among others.
The scramble for applicants comes soon after Communications Minister A Raja announced that DoT would not accept any new UASL applications after October 1. Under the terms of the deal, Sistema JS Financial Company, a company listed on the London Stock Exchange, has agreed to acquire 51% in Telelink, which operates a small but well-performing CDMA technology-based wireless network with over 250,000 users in Rajasthan.
Sistema will seek the approval of the Foreign Investment Promotion Board and has rights to enhance its stake to 74%, the maximum that a foreign company can have in an Indian telecomservice provider.
The marks the second time the Russian company is trying to get a foothold in the booming Indian telecom services market. In 2005, Sistema had signed a non-binding agreement to acquire 49% in Aircel (a mobile operator in Tamil Nadu then promoted by NRI businessman C Sivasankaran) for $450 million. The deal fell through even while Sistema was pushing a plan to use part of India’s rupee debt to Russia for financing such bilateral projects.
For Shyam, this marks the second major divestment in its services business – it sold its GSM operation in Rajasthan to Bharti Airtel Ltd in a cash-and-stock deal some years ago.
Industry experts said the key reason for Sistema buying out Telelink rather than applying on its own for a licence is that the latter is already an operator and, therefore, ahead of new applicants in the race for allocation of spectrum.
Sistema is the largest private sector consumer services company in Russia and the CIS. The joint market capitalisation of companies under Sistema Telecom is over $20 billion.
Experts in the telecom business say that realty companies like Unitech and DLF with their large market capitalisation can raise the resources needed for the telecom business. With start-ups requiring over $5 billion to begin operations, most of them see a large upside in the business which is expected to grow to 500 million subscribers by 2011.
"We do not have a telecom partner right now, but we are going ahead and applying for licences. A special purpose vehicle will be set up for the venture," a DLF executive said.
The government is currently reviewing the policy on spectrum allocation and grappling with plans for introducing next-generation high-speed mobile services in India. Since telecom licensing norms were changed in 2003 to allow universal access (before this, licences were dependent on the technology being used), the government granted over 97 such licences.
Bulls take Nifty to 5000
The bull show no respite. After the Sensex, the Nifty made history crossing the psychological 5000 mark early on Thursday. Heavyweights Reliance Industries, ONGC and ICICI Bank took the index to an all-time high of 5015.55.
At 10:05 am, the National Stock Exchange’s Nifty was up 42 points or 0.85 per cent at 4982.65.
Biggest Nifty gainers were VSNL (up 3.09%), Reliance Energy (2.49%), GAIL (2.12%), Tata Steel (1.62%), ONGC (1.55%) and Maruti Udyog (1.51%).
BPCL (down 2.08%), Hindustan Petroleum (1.33%), Grasim Industries (0.81%), Hero Honda (0.79%), Bajaj Auto (0.41%) and HCL Technologies (0.32%).
The Bombay Stock Exchange’s Sensex was up 147 points or 0.87 per cent at 17,068.37.
The market breadth showed 1260 advances and 435 declines on BSE, while on NSE, 737 shares advanced and 228 declined.
Nifty hits 5,000
The market opened on buoyant note tracking firm global markets as weak US economic data reinforced expectations for another interest rate cut from the Federal Reserve, following a steep half-point reduction to 4.75% last week. Both the niche indices BSE Sensex and S&P CNX Nifty struck all time high in opening trade. Nifty hit all-time high above 5,000 in opening trade. Market breadth was strong on BSE
At 10:29 IST, the 30-shares BSE Sensex was up 158.46 points or 0.94% to 17,076.56. It opened higher at 17,059.61 and advanced further to hit an all time high of 17,158.49. Its low for the day so far is at 17,051.03.
At the day’s high of 17,158.49, the Sensex had gained 237.10 points for the day.
The S&P CNX Nifty surged 45.50 points or 0.91% to 4,985.60. It struck an all time high of 5,015.55 in early trade
The market breadth was strong on BSE with 1332 shares advancing as compared to 604 that declined. 62 remained unchanged
The total turnover on BSE amounted to Rs 896 crore by 10:30 IST
Among the 30-member Sensex pack, 27 advanced while the rest declined.
India’s second largest power utility company in terms of revenue Reliance Energy (REL) surged 3.29% to Rs 1060 on 1.62 lakh shares. It was the top gainer from Sensex pack. As per reports REL is believed to be restructuring its businesses under three verticals — utility, infrastructure and real estate.
ACC (up 3% to Rs 1195), Cipla (up 2.20% to Rs 174.55) and Tata Steel (up 2.23% to Rs 767.55), were the other gainers from the Sensex pack.
India’s largest company in terms of market capitalisation and oil refiner Reliance Industries rose 1.03% to Rs 2345.90 on 65,459 shares
Hindustan Unilever, the country’s largest FMCG company in terms of sales slipped 0.69% to Rs 223.70 on 27,265 shares. It was the top loser from Sensex pack
Bajaj Auto (down 0.53% to Rs 2495.50), and Grasim (down 0.20% to Rs 3438), were the other losers from Sensex pack
Among side counters, Graphite India (up 11.11% to Rs 61), Usha Martin (up 9.15% to Rs 65) and Engineers India (up 7.21% to Rs 645.10), surged
Market is expected to see volatility as derivative contracts for September 2007 series expire today, 27 September 2007. As per market data, marketwide rollover from September 2007 series to October 2007 series stood at 64% while that of Nifty was 59% at end of Wednesday (26 September 2007)'s trading.
Asian markets extended early gains today, 27 September 2007 after stocks rallied on Wall Street overnight. Hang Seng (up 2.06% at 26,971.09), Japan's Nikkei (up 1.78% at 17,080.24), Taiwan Weighted (up 1.32% at 9,379.82), Singapore's Straits Times (up 1.46% at 3,703.44) and South Korea's Seoul Composite (up 1.29% at 1,943.93), all edged higher.
US stocks rallied yesterday, 26 September 2007 led by rally in financial shares after a larger-than-forecast decrease in durable goods orders reinforced expectations of more rate cuts. The Dow Jones Industrial Average gained 99.5 points or 0.7%, to 13,878.15. The Nasdaq Composite Index increased 15.58 points or 0.6% to 2,699.03. The Standard & Poor's 500 Index added 8.21 points or 0.5% to 1,525.42.
As per provisional data, foreign institutional investors (FIIs) purchased shares worth a net Rs 727.99 crore, while domestic institutional investors (DIIs) were net sellers of shares worth Rs 701.43 crore on Wednesday, 26 September 2007
Crude oil prices held above $80 on Thursday, 27 September 2007 as traders balanced rising stockpiles in the United States against fears that a brewing storm could impact production in the Gulf of Mexico. US crude for November delivery rose 25 cents to $80.55 a barrel and London Brent crude rose 34 cents to $77.77 a barrel.
The 30-shares BSE Sensex rose 21.85 points or 0.13% at 16,921.39, an all time closing high, on Wednesday, 26 September 2007.
From a recent low of 13,989.11 on 21 August 2007, Sensex surged 2932.28 points or 20.96% in just 26 trading sessions to 16,921.39 on Wednesday, 26 September 2007
The S&P CNX Nifty gained 1.65 points or 0.03% at 4,940.50, an all time closing high, on Wednesday, 26 September 2007.
Trading Calls
Buy Centurion BoP with a stop loss of Rs 38 for target of Rs 47 and Rs 59.
Buy ICICI Bank with a stop loss of Rs 967 for target of Rs 1200.
Buy Omaxe with a stop loss of Rs 328 for a short-term target of Rs 454.
Stocks to watch
Equities are likely to remain volatile Thursday on the day of the September series derivatives expiry. Global cues being positive, it is probable that Nifty futures is likely to test the 5000-mark today.
EIH Ltd, a member of the Oberoi Group, has decided to terminate its strategic alliance with Hilton International for marketing and co-branding the Trident Hilton brand in the country. This could see some action in EIH shares. The stock closed 0.91 per cent higher at Rs 116 on Wednesday.
The promoter of Kingfisher Airlines, Vijay Mallya, has acquired a 50 per cent stake in an US-based aircraft manufacturing company, Epic Aircraft Manufacturing Company, for an estimated $120 million. This could give a sentimental push to its holding company – UB Holdings’ shares. The stock ended 0.62 per cent lower at Rs 807
DLF plans to build and run its own metro rail to provide mass transport to its townships. According to reports, the developer is now in discussions with global railway equipment vendors to source automatic metro rail systems, which it claims will be more sophisticated than the current system being used by the Delhi Metro Rail Corporation. This augurs well for the realty major’s shares. The stock finished 3.5 per cent down at Rs 738.
Videocon Industries plans to enter the mobile telephony business. The company has applied for mobile licences in all 22 telecom circles in the country. Reports suggest that US communications giant Verizon is likely to partner Videocon for this foray.
In another development, Videocon Industries is planning to set up a semiconductor and LCD complex near Mumbai. The company has sought 200 hectares from the Maharashtra Government for the project, which is estimated to entail an investment of Rs 8,000 crore. This could spur the company’s shares. The stock closed 0.96 per cent lower at Rs 365.
Tata Sons has bought 14.7 per cent in engineering company Praj Industries, in an open-market transaction totalling Rs 338 crore, which signals the Tatas’ intention to enter the distillery and waste water treatment industry. Praj Industries’ shares were down 4.11 per cent at Rs 238.05.
Lumax group has formed an equal joint venture with the Turin-based Cornaglia Group, for the manufacture of vehicle emission systems. Lumax Auto shares are likely to benefit from the news. The stock was down 1.03 per cent at Rs 91.05.
Bullish mood may continue
The uptrend in the market is likely to continue following firm global indices and FIIs remaining net buyers in equities may bring cheers to the market. However, intra-day volatility on the back of expiry of September derivative contracts remains the major concern. Among the key local indices, the Nifty could test 5000 and on breaching 5000 it could test 5040 on the upside and has a strong support at 4930 during intra-day trades.
US indices on Wednesday rallied sharply, with the Dow ended the session 122 points away from its all-time high above 14,000, which it hit in July. The Dow Jones closing firm at 13878, up 100 points, while the Nasdaq moving up by 16 points to close at 2699.
Sharp upsurge in both the domestic and US markets spurred the Indian ADRs trading on the US bourses. Registering phenomenal gains in Patni Computer, Satyam, MTNL and VSNL which vaulted over 4-6% each, while Wipro, Tata Motors, ICICI Bank, HDFC Bank, Infosys gained over 1-2% each. However, Rediff tumbled 4.17%.
Crude oil prices in the international market moved up, with the Nymex light crude oil for November delivery gaining by 77 cents to close at $80.30 a barrel. In the commodity space, the Comex gold for December delivery slipped by $3.30 to settle at $735.50 an ounce.
Morning Call - Sep 27 2007
Market Grape Wine :
In House :
Nifty at a supp of 4930 and 4902 levels with resistance 4967 and 4998 levels.
Intraday : Buy Bharat Forge above 287.50 target 294 with S/L 284.
Intraday: Buy HDIL above 629.50 target 645 with S/L 622.
Out House :
Markets at a support of 16561 & 16786 levels with resistance at 17171 & 17047 levels .
Buy : RIL & Sail
Buy : Relcap & RPL
Buy : IDBI & IFCI
Buy : SBIN
Buy : MRPL ,RNRL , TTML , IFCI , Nagarfert & JpHydro
Buy : IBullReal bullet target 1000 s/l of 560 positional
Buy : IOB & KotakBank
Buy : JpAsso
Buy : Bharti & ONGC
Buy : Positional : Gail , HP & BPCL looks good
Dark Horse : RIL , IBullReal , Noida , NagarFert , RelCap , SBIN & IDBI
Bullet for the Day : Bharti & IciciBank with stop loss .
Pre Market Watch
Indian market is likely to have a positive opening on the back of strong positive global cues. On Wednesday, the Indian markets ended on a positive note as BSE Sensex closed higher by 21.85 points at 16,921.39 while Nifty grew by 1.65 points to close at 4,940.50. We expect the market to see some bull run during the trading session but expiry of the September F&O series today is also likely to play an important role.
BR>On Wednesday, the US market closed in positive territory. The Dow Jones Industrial Average (DJIA) surged 99.50 points to close at 13,878.15. The S&P 500 (SPX) index increased by 8.21 points to close at 1,525.42 and the NASDAQ Composite (RIXF) advanced 15.58 points to close at 2,699.03.
BR>Indian ADRs ended in green. In technology sector, Patni computers surged by (6.35%) along with Satyam by (4.37%), Wipro by (2.95%) and Infosys by (2.36%). In banking sector, ICICI bank and HDFC bank grew by (1.86%) and (0.33%) respectively. Tata Motors grew by (0.92%). MTNL and VSNL advanced by (4.79%) and (4.24%) respectively.
BR>The major stock markets in Asia are trading strong. Japan''s Nikkei is trading firm at 16,688.64 up by 252.90. Hang Seng index trading strong at 26,871.24 higher by 440.95 points. Taiwan weighted is trading higher by 71.35 points at 9,328.82. Singapore Strait times trading up by 35.56 points at 3,685.65. Seoul Composite grew by 17.45 points to trade at 1,936.71.
BR>Yesterday, the gross equity purchased was Rs.4,509.10 (in crores) and the gross debt purchased was Rs482.20 (in crores). The gross equity sold was Rs2, 958.90 (in crores), and the gross debt sold was Rs220.60 (in crores). The net investment of equity was Rs1, 550.20 (in crores) and the net debt investment was Rs261.60 (in crores).
Today, Nifty has support at 4,905 and resistance at 5,070 and BSE Sensex has support at 16,810 and resistance at 17,295.
General Motors fuels rally in US Market
Bear Sterns adds further fuel to this rally on news of selling its minority stake
General Motors and Bear Sterns pulled up US stocks considerably today, Wednesday, 26 September, 2007. Market traded in positive territory for entire day but indices shot up in the final hour of trading on news from both companies. All ten economic sectors ended the day in positive territory, with consumer discretionary, consumer staples and materials registering the largest gains.
The Dow Jones industrial Average closed higher by 99.6 points at 13,878.15. The Nasdaq Composite Index, finished higher by 15.88 points at 2,699.03. S&P 500 finished higher by 8.21 points at 1,525.42.
Twenty-five out of thirty Dow stocks ended in green today. General Motors and Alcoa were the top two Dow winners. Boeing and H-P featured among the top two Dow laggards.
General Motors and the United Auto Workers union reached a tentative labor agreement. The GM and UAW agreement included the creation of an independent trust that will take over $50 billion in retiree health insurance obligations. The deal reportedly also includes an important provision on second tier wages for some incoming employees. GM shares closed up by 9.01%.
On the Bear Sterns front, The New York Times reported that the company is interested in selling its minority stake. There is also speculation that Warren Buffett, Bank of America and Wachovia are potentially interested in acquiring the minority stake. This gave a huge push to the financial sector and also the overall market. Shares of Bear Sterns shot up 11% on this report.
Durable goods orders fall 4.9% in August
When market opened in the morning, indices were trading in the green. But financials continued to trail a bit behind with respect to other sectors. Some weakness in the banking group, was acting as the main limiting factor.
The Commerce Department reported that orders for durable goods fell 4.9% in August, indicating growing concerns that business spending might not be strong enough. Orders fell in August after a 6.1% gain in July; the drop was the biggest monthly decline since January.
But market did not react negatively to this news. The General Motors news was the biggest source of support today, but the pullback in energy prices was also helping.
But ninety minutes before the closing bell was to ring, the Bear Sterns bomb exploded in the market. Financial stocks got a big boost from this and overall market sentiment improved further taking Dow as high as 132 points.
Surprisingly, among Indian ADRs, barring Rediff.com and WNS Holdings, all closed in the green. Rediff shares lost 4.2% today but Rediff was the top gainer in the last two days. MTNL and VSNl were the two top gainers today gaining 4.8% and 4.25 respectively.
Crude supplies gains for the first time in five weeks
Crude oil prices initially fell today after the Energy Department’s weekly inventory report but then erased earlier losses and closed higher for the day. This was crude’s first gain in four days. Crude-oil futures for light sweet crude for November delivery closed at $80.3/barrel (higher by $0.77/barrel or 0.9%) on the New York Mercantile Exchange. Prices are up 32% from a year earlier.
As per this week’s inventory report by the Energy Dept, crude supplies rose 1.8 million barrels to 320.6 million for the week ended 21September (against an expected decline of 2.15 million barrels). Crude inventories are 3.5% lower than year-ago levels. U.S. stockpiles had fallen by a total of 18.3 million barrels in the previous four weeks. This was first gain in last five weeks.
Trading volume came to nearly 1.3 billion on the New York Stock Exchange, with advancing stocks topping decliners roughly 2 to 1. On the Nasdaq, volume topped 2 billion shares, and advancing stocks outran decliners by more than 4 to 3.
For tomorrow, several economic reports will be released. The final revision to the second quarter Gross Domestic Product will provide an official assessment of economic growth in the latest quarter. The weekly Jobless Claims and the latest figures from the New Home Sales trends will also hit the wires.
Market to stay volatile on September 2007 derivative contracts expiry
Market is expected to see volatility as derivative contracts for September 2007 series expire today, 27 September 2007. As per market data, marketwide rollover from September 2007 series to October 2007 series stood at 64% while that of Nifty was 59%.
Asian markets advanced today, 27 September 2007 after stocks rallied on Wall Street overnight. Hang Seng (up 1.67% at 26,871.24), Japan's Nikkei (up 1.54% at 16,688.64), Taiwan Weighted (up 0.77% at 9,328.82), Singapore's Straits Times (up 0.97% at 3,685.65) and South Korea's Seoul Composite (up 0.91% at 1,936.71), all edged higher.
US stocks rallied yesterday, 26 September 2007 led by rally in financial shares to post their steepest gain since the day after the Federal Reserve cut its benchmark interest rate on 18 September 2007. Stocks also rose after a larger-than-forecast decrease in durable goods orders reinforced expectations of more rate cuts. The Dow Jones Industrial Average gained 99.5 points or 0.7%, to 13,878.15. The Nasdaq Composite Index increased 15.58 points or 0.6% to 2,699.03. The Standard & Poor's 500 Index added 8.21 points or 0.5% to 1,525.42.
As per provisional data, foreign institutional investors (FIIs) purchased shares worth a net Rs 727.99 crore, while domestic institutional investors (DIIs) were net sellers of shares worth Rs 701.43 crore on Wednesday, 26 September 2007
Crude oil prices held above $80 on Thursday, 27 September 2007 as traders balanced rising stockpiles in the United States against fears that a brewing storm could impact production in the Gulf of Mexico. US crude for November delivery rose 25 cents to $80.55 a barrel and London Brent crude rose 34 cents to $77.77 a barrel.
The 30-shares BSE Sensex rose 21.85 points or 0.13% at 16,921.39, an all time closing high, on Wednesday, 26 September 2007. It advanced to hit an all-time high of 17,073.87, on that day.
It took just 5 trading sessions for the Sensex to reach 17,000 from 16,000 after the barometer index first struck 16,000 on 19 September 2007. The Sensex’s 1,000-point surge was the fastest ever. From a recent low of 13,989.11 on 21 August 2007, Sensex has surged 2932.28 points or 20.96% in just 26 trading sessions to the latest close of 16,921.39 on Wednesday, 26 September 2007
The S&P CNX Nifty gained 1.65 points or 0.03% at 4,940.50, an all time closing high, on Wednesday, 26 September 2007. It struck an all time high of 4980.85 on that day itself.
Dhanus Technologies IPO Allotment
There will be delay in allotment of Dhanus Technologies
Due to some problems with the SEBI regarding
Non Disclosures in Red Herring Prospectus
Allotment may be delayed to Oct 8 2007
Grey Market - Maytas, Kouton, Consolidated
Power Grid Corporation 44 to 52 22 to 23
Dhanus Tech. 280 to 295 70 to 75
Koutons Retail 370 to 415 75 to 80
Consolidated Construction 460 to 510 180 to 185
Supreme Infra 95 to 108 65 to 70
Saamya Biotech 10 6 to 7
MAYTAS Infra 320 to 370 150 to 155
Circuit Systems (India) Ltd. 35 3 to 4
Kaveri Seeds 150 to 170 12 to 14
Trading Calls
Nifty (4941) SL 4895 Res 4985
Buy IDEA (128) SL 124
Target 134, 136
Buy ACC (1156) SL 1144
Target 1185, 1190
Buy Century Textile (833) SL 827 Target 846, 850
Buy Tata Motors (739) SL 733 Target 751, 754
Sell Tata Tea (780) SL 787 Target 767, 765
Topsy-Turvy Thursday
Love works in miracles every day: such as weakening the strong, and strengthening the weak; making fools of the wise, and wise men of fools; favouring the passions, destroying reason, and in a word, turning everything topsy-turvy.
Bulls are in love with the markets. Miracles seem to be happening everyday for the bulls. Fasten your seat belts as the markets are set to take you on a topsy-turvy ride today. Last evening's plans to deal with the F&O expiry may change given the developments in the global markets. September, which is historically a bad month did prove to be different this time. The big question today would be to what extent the roll overs will take place. The coming series will be a key one due to the quarterly results.
Thanks to an upbeat finish on Wall Street, equity markets have rallied across the globe. Indian bourses will also witness a ripple effect of the bullish undertone in the world markets. The bears could read the writing on the wall and run for cover (short covering in F&O) today, giving the bulls further ammunition to take the indices to new orbits.
Skeptics may feel the market is running ahead of fundamentals (we too think so), but when FIIs pour in close to $2bn (only cash segment) in just six days flat, the indices are naturally going to go only one way, that is up. Some market observers are of the view that portfolio investment into emerging markets will remain strong going ahead. Ride this wave of optimism with whatever you are willing to risk. Be careful in choosing the stocks. We won't get fed up of repeating not to get fooled into buying poor quality or similar seeming companies.
We see a gap-up opening on the back of the bullish trend across the world. The F&O expiry may make things a bit volatile. The extended session will keep bulls on bears on tenterhooks. But its advantage bulls as they get on to a fine start.
Some market observers expect India to be re-rated further compared to other emerging markets. Though the recent upsurge has been owing to buying in select index heavyweights, particularly the Reliance shares, other stocks are likely to catch up soon. A lot of foreign investors are said to be sitting on the sidelines to enter emerging markets like India. As long as the liquidity factor is favourable, the bulls will remain in command, barring a few hiccups here and there. These obstacles may come in the form of political upheavals or announcements by the RBI/Government to check the run-away rise in the rupee.
US stocks rallied the most in a week after General Motors agreed on a contract with the United Auto Workers and Bear Stearns rallied on speculation that billionaire investor Warren Buffett was interested in buying a stake in the battered Wall Street firm.
GM climbed to the highest since July after cutting a deal that will allow the largest US automaker to get rid of $50bn in health-care costs. Bear Stearns jumped the most in six weeks on a New York Times report that Buffett may provide capital to stem losses from the housing slump.
The Dow Jones Industrial Average gained 99.50 points, or 0.7%, to 13,878.15. The Dow ended the session 122 points away from its all-time high above 14,000, which it hit in July. The S&P 500 Index added 8.21 points, or 0.5%, to 1,525.42 and the Nasdaq Composite Index increased 15.58 points, or 0.6%, to 2,699.03.
US financial shares posted their biggest gain since Sept. 19, the day after the Federal Reserve cut its benchmark interest rate by 50 basis points. Stocks also rose after a larger-than-forecast decrease in durable goods orders stoked expectations of more rate cuts.
Oil prices rose in the afternoon, erasing morning losses. US light crude oil for November delivery rose 77 cents to settle at $80.30 a barrel in New York. Prices had fallen in the morning after a government report showed a surprise increase in weekly crude supplies. Last week, the October contract settled at a record high of $83.32.
Treasury prices ended the session flat after bouncing throughout the day. The yield on the 10-year note stood at 4.62%, unchanged from late on Tuesday. In currency trading, the dollar fell to another record low versus the euro before bouncing back a bit, and also gained versus the yen. COMEX gold for December delivery fell $3.30 to settle at $735.50 an ounce.
European markets advanced buoyed by strength in the financial-services sector as bid speculation boosted UK mortgage lender Northern Rock and Nordic stock exchange operator OMX received a higher takeover offer. The pan-European Dow Jones Stoxx 600 index rose 0.7% to 375.02. The German DAX 30 closed up 0.5% at 7,804.15, the French CAC-40 rose 0.9% to 5,690.77 and the UK's FTSE 100 advanced 0.6% to 6,433.00.
All the emerging markets closed higher. The Bovespa in Brazil rose 1.5% to 59,715 while the IPC index in Mexico ended flat at 30,303. The RTS index in Russia surged by 2% to 2049 and the ISE National-30 index in Turkey was up 2.7% at 68,915.
Asian markets were trading sharply higher this morning. The Nikkei in Tokyo rallied 252 points to 16,688 while the Hang Seng in Hong Kong surged 420 points to 26,850. The Straits Times in Singapore rose 39 points to 3689 and the Kospi in Seoul gained 17 points to 1936.
Historic trading session ended flat, after benchmark Sensex surged pass yet another milestone in early trades. Within minutes after trading started the Sensex crossed the 17k mark rising by over 100 points from previous close. The index took merely 6 days to reach the landmark. Wild intra-day gyrations were witnessed throughout the trading session ahead of F&O expiry. Volumes also fell as turnover in the F&O segment dropped 6.1%. Finally, BSE 30-share benchmark Sensex ended 22 points higher to close at 16,921. NSE Nifty ended flat at 4,940.
Pfizer jumped by over 5% to Rs716. According to reports the company has been asked by NPPA to reduce prices of two drugs, Benadryl and Caladryl. The scrip touched an intra-day high of Rs750 and a low of Rs686 and recorded volumes of over 68,000 shares on NSE.
Ranbaxy Laboratories slid 0.5% to Rs422 after reports stated that the company would market Australian drug manufacturer, Sirtex Medical’s, cancer drug in the country. The scrip touched an intra-day high of Rs430 and a low of Rs421 and recorded volumes of over 9,00,000 shares on NSE.
SRF spurred by over 5% to Rs151 on reports that the company would set up a new polyster industrial yarn spinning unit with an annual capacity of 14500 tonnes at its existing Gumminipoondi plant in Tamil Nadu. The scrip touched an intra-day high of Rs151 and a low of Rs144 and recorded volumes of over 5,00,000 shares on NSE.
PFC slipped 1% to Rs202. Reports stated that the company has invited preliminary bids from prospective developers for setting up a 4,000MW project at Tilaiya in Jharkhand. The scrip touched an intra-day high of Rs208 and a low of Rs201 and recorded volumes of over 10,00,000 shares on NSE.
GAIL was up by over 3% to Rs374 on reports that the company would consider bonus issue and stock split. The scrip touched an intra-day high of Rs390 and a low of Rs362 and recorded volumes of over 30,00,000 shares on NSE.
BHEL edged lower by 0.5% to Rs1993. The company declared that they have secured contract worth Rs7.6bn. The scrip touched an intra-day high of Rs2020 and a low of Rs1982 and recorded volumes of over 7,00,000 shares on NSE.
Sugar stocks recorded sweet gains on reports that sugar mills would be given interest- free loans against excise payments. Renuka Sugar surged by over 1% to Rs706, Bajaj Hindustan added 0.7% to Rs189 and Rana Sugar added 1% to Rs19.
Banking stocks were in the limelight on hopes that RBI would cut interest rates following Federal Reserve way. ICICI Bank surged by over 2.5% to Rs1020, SBI advanced by 2.3% to Rs1849 and PNB added 1.4% to Rs535. OBC, Union Bank and Corp Bank were the major gainers among the Mid-Cap stocks.
IT stocks recorded smart gains after reports stated, the IT firms indicated that billing rates for new contracts will go up by 3-4% and the old one by 2-3%, to rein in margin pressure. Infosys surged by 3.5% to Rs1833, TCS advanced by 4.5% to Rs1047 and Satyam gained 4.8% to Rs457.
Power stocks witnessed profit booking. REL slipped by 5% to Rs1034, PFC was down by 1% to Rs202 and Tata Power lost 0.5% to Rs834.
Oil marketing stocks were in momentum as reports stated that the government would issue Rs12tn worth of oil bonds to the oil marketing companies. HPCL surged by over 4.5% to Rs278, IOC was up by over 7% to Rs468 and BPCL added 4.5% to Rs365.
Stocks in News:
Atlas Cycles, C&C Construction, Deccan Aviation and Sakthi Sugar will announce their results today.
State Bank of India cuts home loan rates by 75bps
The oil ministry has proposed a 12.5% hike in the price of natural gas sold by ONGC to power and fertilizer units from Rs3.2per scm to Rs3.6per scm.
Shipping Corporation of India is investing Rs30bn to build country's largest shipyard.
Bank of India may dilute 5% government stake through QIP.
Videocon is planning to set up a semiconductor and LCD complex near Mumbai at an investment of Rs80bn.
Videocon has applied for mobile licenses in all 22 telecom circles in the country and is likely to rope in Verizon as JV partner.
Reliance Energy is planning to restructure its business under three verticals - utility, infrastructure and real estate.
Pantaloon Retail plans to spin off its subsidiary, Future Ventures, as a separate company and raise Rs200bn through IPO and private placement.
Bharati Shipyard and the Apeejay Surendra group plan to set up a ship manufacturing unit in Orissa with an investment of Rs22bn.
Nagarjuna Construction has forecast that its profits will rise by 32% yoy in FY08 on increased highway orders and contract to build India’s biggest steel furnace.
Japanese trading firms Mitusui & Co and Mitsubishi Corp are likely to take stake in an aromatics unit planned by MRPL.
Russian conglomerate Sistema has acquired a 10% stake in Shyam Telelink, the unlisted telecom services arm of Shyam Telecom group.
Apollo Hospitals is planning set up 50 hospitals across the country and plans to invest Rs200-350mn in each of the facilities.
Vijay Mallya is picking up 50% stake in Epic Aviation, the Bend Oregon based small aircraft manufacturer in his personal capacity.
India’s iron ore export to China decreased by 26.5% to 4.59mn tons in August.
India's crude oil production in August was 2.8% less than the target of 2.95mn tons.
The country’s textiles exports are expected to fall short by over 16% from the target of US $25bn for FY08.
DTH players may be allowed partial exclusivity of content.
Sugar industry may get interest free loans equivalent of excise payments.
Fund Activity:
FIIs were net buyers of Rs7.28bn (provisional) in the cash segment on Wednesday and the local institutions pulled out Rs7.01bn. In the F&O segment, foreign funds were net sellers of Rs5.85bn.
On Tuesday, FIIs were net buyers to the tune of Rs15.5bn in the cash segment. With this, their net investment in Indian shares in the past six days has risen to more than US$1.93bn.
Major Bulk Deals:
Macquarie Bank has sold Asian Granito; Deutsche Securities has sold Balrampur Chini; BNP Paribas has picked up GV Films; IDBI has sold Jaiswal Neco; Bear Stearns has bought Kamat Hotels while HSBC Financial has sold the stock; Deutsche Bank AG has sold Karuturi Networks; Lotus Global Investment has sold Kashyap Tech; Merrill Lynch has sold Praj Industries (Tata Sons has picked up a 14.7% stake in the company from promoters and from the market); Merrill Lynch has purchased Sujana Metal; Kotak Mahindra UK has picked up Tera Software while selling Zen Tech; Citigroup has bought TVS Motor while Merrill Lynch and Morgan Stanley have sold the stock.
Upper Circuit:
RIIL, Bag Films, Jayant Agro, Jay Pee Hotel, Swan Mills, IID Forgings, Ruby Mills, Jai Corp and Marathon Nextgen.
Lower Circuit:
Crude crawls up crossing $80
Crude supplies increase for the first time in five weeks
Crude oil prices initially fell today after the Energy Department’s weekly inventory report but then erased earlier losses and closed higher for the day. This was crude’s first gain in four days.
For the day ending Wednesday, 26 September, 2007, crude-oil futures for light sweet crude for November delivery closed at $80.3/barrel (higher by $0.77/barrel or 0.9%) on the New York Mercantile Exchange. Prices are up 32% from a year earlier.
Brent crude oil for November settlement fell $0.19 (0.2%) to close at $77.43 a barrel on the London-based ICE Futures Europe exchange.
As per this week’s inventory report by the Energy Dept, crude supplies rose 1.8 million barrels to 320.6 million for the week ended 21September (against an expected decline of 2.15 million barrels). Crude inventories are 3.5% lower than year-ago levels. U.S. stockpiles had fallen by a total of 18.3 million barrels in the previous four weeks. This was first gain in last five weeks.
Motor gasoline supplies climbed 600,000 barrels to stand at 191.4 million barrels. Distillate stocks were up 1.6 million barrels at 137.1 million barrels. Refinery utilization fell to 86.9% of capacity from 89.6% a week earlier.
Natural gas rises on profit taking
Natural gas rose today as speculative buyers who had made bets that prices would fall bought the positions back to protect gains or limit losses. Gas for October delivery rose 6.3 cents (1%) to settle at $6.423 per million British thermal units. The October contract for delivery expired at the end of today's trading session.
Against this backdrop, October reformulated gasoline pared earlier losses to close down 1.05 cents at $2.0274 a gallon. October heating oil edged down 0.13 cent to finish at $2.1826 a gallon.
OPEC planned to boost daily oil production by 500,000 barrels. OPEC's production target is 27.2 million barrels a day, beginning 1 Nov. OPEC, has decided to raise their daily output by 500,000 barrels per day, starting 1 November.
Attacks on oil facilities in Nigeria have curtailed shipments and tight supplies from OPEC have bolstered crude prices this year. As per the U.S. Energy Information Administration, tight global energy supplies are expected to keep energy prices high through 2008.
Subscribe to:
Posts (Atom)