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Tuesday, October 16, 2007

Poll - 20K or 18K

We know which one is coming now, anyway, here are the poll results

Lets rock 20K baby! - 77 (56%)
Lets slow down to 18K - 52 (37%)
Na Idhar na Udhar! - 8 (5%)

Votes so far: 137

IMPORTANT - SEBI recommendations on P-Notes issuance

This paper sets out the proposed policy measures on Offshore Derivative Instruments (Participatory Notes).

With a view to monitoring the investment by FIIs through Offshore Derivative Instruments (ODIs) such as Participatory Notes (PNs), Equity Linked Notes, Capped Return Notes, Participating Return Notes etc., SEBI had prescribed reporting of issuance / renewal / cancellation / redemption of the ODIs on a monthly basis since October 2001. The figures submitted by the FIIs on a month to month basis showed an increasing trend.

In the latter half of 2003, a Technical Committee of SEBI Regulated Entities was constituted by the HLCCFM to examine the issues pertaining to P-Notes more closely. The Committee, comprising representatives of RBI, IRDA, SEBI and NSE met in October, 2003 and extensively discussed the issues like:

* Whether PNs should be allowed to be issued at all,

* Whether restrictive use of PNs is possible,

* Monitoring of compliance

* Phasing out of PNs that are non-compliant with new restrictions, etc.

The Committee, having examined the concerns raised by the participants, felt that while these issues and concerns would have to be addressed in the interest of the market, the measures taken should be practical, pragmatic, non-disruptive and enforceable without great difficulty. Recognizing that it may be difficult to enforce a complete ban on PNs, the Committee made certain recommendations which included issuance of PNs only to regulated entities subject to KYC requirements. The same was implemented through suitable amendment to FII regulations.

However, the year on year increase in ODIs, the anonymity that the ODI provides to the investors and the copious inflows into the country from foreign investors has been engaging the attention of the Government and the regulators such as the Reserve Bank of India and SEBI. This has been a topic for discussion in many fora such as HLCC and various committees set up by the Government/ regulators.

Current Scenario:
Currently 34 FIIs / Sub-accounts issue ODIs. This number was 14 in March 2004. The notional value of PNs outstanding which was at Rs.31,875 crores (20% of AUC [1]) in March 2004 has grown to Rs.3,53,484 crores (51.6% of AUC) by August 2007. The value of outstanding ODIs with underlying as derivatives currently stands at Rs1,17,071 crores, which is approximately 30% of total PNs outstanding. The notional value of outstanding PNs, excluding derivatives as underlying as a percentage of AUC is 34.5% at the end of August 2007.

Proposed Measures:
Following consultation with the Government, the following measures are proposed to be implemented urgently:

1) FIIs and their sub-accounts shall not issue/renew ODIs with underlying as derivatives with immediate effect. They are required to wind up the current position over 18 months, during which period SEBI will review the position from time to time.

2) Further issuance of ODIs by the sub-accounts of FIIs will be discontinued with immediate effect. They will be required to wind up the current position over 18 months, during which period SEBI will review the position from time to time.

3) The FIIs who are currently issuing ODIs with notional value of PNs outstanding (excluding derivatives) as a percentage of their AUC in India of less than 40% shall be allowed to issue further ODIs only at the incremental rate of 5% of their AUC in India.

4) Those FIIs with notional value of PNs outstanding (excluding derivatives) as a percentage of their AUC in India of more than 40% shall issue PNs only against cancellation / redemption / closing out of the existing PNs of at least equivalent amount.

Long positions will get chopped tomorrow

Dhanus Technologies Listing

Dhanus Technologies will list on Oct 17 2007

Fund Insight

Fund Insight

Car free with flat, what next ?

With property prices in Bangalore’s suburbs either stagnating or declining, small and mid-size realtors are being forced to offer freebies in attract buyers. Orange Properties for instance is offering a Maruti SX4 for each flat booked at its property off Bannerghatta Road in South Bangalore. Orange is hawking a two bedroom flat of 1230 sq ft at Rs34 lakh and a three bedroom 1500 sq ft flat at Rs42 lakh with an SX4 thrown in for free. The company, however, says that they are not giving cash discounts. “It is an integrated offer as we are looking to provide our customers with quality lifestyle and SX4 fits in with our strategy.”
Similarly, Ittina Properties is offering silver dining sets worth Rs50,000 to those buying “luxury”apartments worth Rs45-50 lakh at their Marthahalli and Whitefield projects. “Our residential properties are located close to IT companies. In September, we ran a scheme, wherein IT professionals got a 5% discount on residential bookings. It resulted in a 30% increase in sales,” says Mona Ittina, executive director, Ittina Properties
Ankur Srivastava, managing director, DTZ, a real estate advisor says, “Developers are trying hard not to cut prices but provide additional value. With a supply-demand mismatch developers are forced to offer various kinds of freebies.”
Several of Bangalore’s outer suburbs like Bannerghatta, Electronics City and Whitefield have witnessed a softening in real estate prices ranging between 5-15%. However, rather than reduce prices, builders have introduced value propositions like free parking, furnishing, or Italian kitchen in place of regular one.
“Prices have dampened in the city’s outskirts. Now buyers can negotiate for additional facilities at no extra cost,” says realtor Irshad Ahmed of Irshads Property Matters.
Orange Properties, for instance, is running another offer wherein everything from a Maruti 800 to a LCD TV, a laptop and a home theatre system are being provided free
While pointing out that there is continued demand for retail, residential and office space in Central Business District, Feroze Abdulla, managing director, Feroze Estates, says the story is different in suburbs.
“Instead of the gimmick of freebies, builders should provide greater transparency in pricing. Buyers are aware that nothing comes free,” he says.
However, large retail players like Prestige Estates Projects Pvt Ltd, Sobha Developers and Puravankara Group say they are not offering any freebie.
Abhishek Kiran Gupta, senior manager, research and strategy consulting, Jones Lang Lasalle Meghraj says only small and mid-sized realtors are offering freebies to attract buyers.
“The lull in the market since the beginning of this year forced builders to rethink strategy and come up with innovative ideas to add value without reducing price. However, it is primarily the small and mid sized players who have to do this as unlike large players they don’t have a brand image.”

Ambani brothers - making investors happy

The Ambani brothers may well be cracking the whip on the stock market bulls that have lifted investors’ wealth by Rs five trillion, 20 per cent of which is accounted for by their own companies.

The ongoing surge in the stock market has seen the market value of all Indian companies growing by about Rs 20 trillion since the beginning of the current fiscal -- out of which about Rs four trillion has been contributed by the companies controlled by the two Ambani groups.

Moreover, this gain of about Rs four trillion in market value is nearly double of the additional wealth created by the companies controlled by three other entrepreneurs who make up the list of five richest businessmen in India.

Mukesh Ambani group companies, led by the country's most valued firm Reliance Industries, have contributed close to Rs 2.5 trillion to the rise in investors' wealth, followed by about Rs 1.5 trillion by the ADA group.

In comparison, Bharti Airtel, led by Sunil Mittal, has seen its market value soaring by over Rs 75,000 crore in the same period, while KP Singh-led realty giant DLF Ltd has added close to Rs 1.5 trillion to the investors' kitty. DLF was not listed at the beginning of this fiscal.

Wipro, led by the fifth richest Indian Azim Premji, has actually seen its market value declining by Rs 3,800 crore.

The market benchmark Sensex has gained about 6,000 points or about 45 per cent during this period, while the total investor wealth has grown to over Rs 58 trillion from just about Rs 38 trillion at the end of last fiscal.

The country's ten most valued firms -- including PSUs ONGC, NTPC and BHEL besides RIL, Reliance Comm, Bharti Airtel, DLF and ICICI Bank, have contributed a total of about Rs 9 trillion to the gain in investors' wealth.

While the stock market today closed on broadly flat note with the Sensex ending seven points down at 19,051.86, a number of companies from the two Reliance groups rose, with a few even managing to scale new peaks.
RIL dropped 0.6 per cent to Rs 2,648.30; RPL settled 1.5 per cent up at Rs 183.74 after hitting a peak of Rs 185.

Reliance Industrial Infrastructure Ltd also rose 5 per cent to an all-time high of Rs 2,384.90.

In the Anil Ambani group, Reliance Capital rose four per cent to Rs 1948.20 after scaling a peak of Rs 1970, Reliance Communications ended 1 per cent up at Rs 760.65 and hit a peak of Rs 778.50, Reliance Energy rose 3.1 per cent to Rs 1904.40 and scaled a record high of Rs 1959.

Reliance Natural Resources Ltd (RNRL) and Adlabs Films ended lower. Shares of Bharti Airtel and Wipro also ended lower, while that of DLF gained about 2.4 per cent.

The combined market value of the ten biggest companies in terms of market cap currently stands at about Rs 18 trillion, which is nearly double of about Rs nine trillion at the end of the last fiscal.

The collective investor wealth in all the companies controlled by the five richest Indians has grown to about Rs 11.7 trillion from about Rs 5.5 trillion at the beginning of this fiscal, while that of all the companies controlled by the two Ambani brothers has grown to about Rs 7.3 trillion from about Rs 3.35 trillion.

Among individual companies, RIL is the biggest gainer with about Rs 1.9 trillion, while Reliance Communications and Bharti Airtel have seen a gain of Rs 70,000-75,000 crore each. RPL has added close to Rs 50,000 crore, while Reliance Capital and Reliance Energy have each gained about Rs 30,000 crore each.

Welspun Gujarat

Welspun Gujarat



Sasken Communications

Sasken Communications

Transformer Sector

Transformer Sector





Orbit Corporation (Q2FY08 Result Review)

Orbit Corporation (Q2FY08 Result Review)

Axis Bank

Axis Bank

Sensex pares early losses

The market overcame heavy selling in the early trades and climbed to new heights. The benchmark index, the Sensex, touched a new high of 19,174 in volatile trades during the opening session but slipped on profit booking in the afternoon. The market managed to recover from its day's low of 18777 towards the close despite weak global cues and rising crude oil prices. Oil prices rose to record highs on fears that Turkey will pursue Kurdish rebels into Iraq and disrupt oil supplies in the region. The Sensex, which commenced the day on a promising note by touching a record peak, wrapped up the session with losses of six points at 19052, while the Nifty was down two points at 5668.

The breadth of the market was marginally weak. Of the 2,817 stocks traded on the BSE, 1,543 stocks declined, 1,212 stocks advanced and 62 stocks ended unchanged. On the sectoral front, the BSE Bankex was up 2.75% at 9974, the BSE CD Index added 1.20% at 4892 and the BSE Realty Index gained 1.10% at 10187 while the BSE HC Index closed marginally higher at 3854. However, the BSE IT Index, BSE TECk Index, BSE FMCG Index and BSE Oil & Gas Index were down 1-0.50% each.

Among the major losers, Infosys shed 3.14% at Rs1,868, HLL declined 3.08% at Rs212, M&M fell 2.34% at Rs815, L&T slipped 2.02% at Rs3,346, SBI dipped 1.67% at Rs1,924, Bajaj Auto lost 1.55% at Rs2,540 and Bharti Airtel slumped 1.50% at Rs1,110. ACC, Grasim and ONGC were down over 1% each. ICICI Bank, however, gained 5.48% at Rs1,157, followed by Hindalco that rose 4.55% at Rs197, Reliance Energy that added 3.09% at Rs1,904, Maruti Udyog that jumped 2.28% at Rs1,186 and NTPC that was up by 1.96% at Rs231. While Satyam Computer, Reliance Communication, HDFC Bank, Ambuja Cement and Dr Reddy's Lab ended the day in the positive territory.

Over 3.55 crore Power Grid Corporation shares changed hands on the BSE followed by Tata Teleservices (3.52 crore shares), IFCI (1.76 crore shares), Reliance Natural Resources (1.71 crore shares) and Reliance Petroleum (1.21 crore shares).

Value-wise, Reliance Energy registered a turnover of Rs657 crore on the BSE followed by Power Grid Corporation (Rs433 crore), Reliance Industries (Rs394 crore), Reliance Capital (Rs295 crore) and Reliance Communication (Rs259 crore).

Market Close: Bails out after new high..

Skids after a great momentum which pushed indices above 19,000 levels in just 4 days. Start saw new high but profit booking pushed indice below 19k levels. Market juggled on both side till mid session but investors traded safe by booking profits as indices slipped over 250 down. Global market too traded in red as US Market slipped due to crude trading at new high. Buying interest during the final hour helped indices to recover the loss made. Banking, Consumer Durables and Reality counters fuelled the rally while Technology and Auto stocks weighed on the bourses. Small and mid caps were in demand and out performed the front line stocks which seemed to have been left out in the recent rallies. Asian indices slipped into red as the session progressed which also impacted Indian bourses. European indices continue to trade in red after a start in the negative territory.

Crude rallied to new high of $87.97 as intraday high due to tension's between Turkey and Iraq plus anxiety over winter supplies. This could prove negative for Oil marketing companies and Aviation Industry.

Sensex closed down by 7 points at 19051.859. Weighing on the Sensex are losses in Infosys (1868.25,-3 percent), HLL (212.45,-3 percent), L & T (3346.25,-2 percent), SBI (1924.35,-2 percent) and Bajaj Auto (2540.55,-2 percent). Losses are restricted by gains in ICICI Bk (1156.75,+5 percent), Hindalco (197.45,+5 percent), Rel Energy (1904.4,+3 percent), Maruti (1186.8,+2 percent) and NTPC (231.25,+2 percent).

Mold Tek Technologies Ltd delivered a good set of numbers for the ended of Sept quarter. Mold Tek is one of the leaders in packaging and an emerging player in the Structural Engineering KPO Services segment. Mold Tek managed a growth of 12 % yoy with total turnover of Rs. 28 cr as against Rs. 25 cr during last year. Sales in the Packaging Division rose by 4% from Rs. 22.28 cr to Rs.23.12 cr and that from the IT Division increased from Rs. 4.23 cr to Rs.5 cr with an impressive more than 18% growth sequentially. The overall net profit for the 2Q FY08 registered a growth of 66% from Rs. 2.2 cr of previous year to Rs. 3.7 cr for the current year. Marginal drop on sequential basis. The profits from the IT division jumped from Rs. 1.57 cr to Rs. 2.69 cr, thus registering a 71 % growth yoy while profits from Plastic divison grew by 55% to Rs 0.99cr. Do read the detailed result analysis of the latest quarter results to know more about the company.

We attended the analyst meet of Patel Engineering, the company is into civil infrastructure construction in the area of Hydro Power projects, Irrigation projects and Bridges, tunnels etc (transportation projects). The company derives 55% of revenues from hydro, 30% from Irrigation and rest from transportation. It reported a good numbers for the second quarter. On consolidated basis the top line grew by 38% to Rs 339 cr and the bottom line grew by 39% to Rs 35 cr. The EBDITA margins stood at 13.5% and the net margins is at 10.45%. The current order book is Rs 5400 cr. Patel has land bank of around 1000 acres which is outside the city of Chennai 230 acres, Hyderabad 640 acres, Bangalore 85 acres and in Mumbai 26 acres. The company now entering into real estate business by developing this land. It intends to Lease these lands after development. The average lease rent per year is expected to be around Rs 522 cr. Valuation seems to be too expensive at the current market price of Rs 765 the stock trades at 36 times of forward earnings. The Land bank is the big trigger here and we also like the business model of the company; one can wait for down side to accumulate for long term investment.

Technically Speaking: Sensex couldn't sustain the 19k levels as profit booking engulf across. Sensex could look for a consolidation phase.. after a heady run. The high volatility will continue. Bias is clearly upwards but its the sharp rise which brings in bouts of profit taking, followed by bouts of value buying and short covering 18300 remains a strong support which was the gap which the Sensex has left unfilled. It is tough to give targets for Sensex .. but clearly the bias is up.

Market ends flat amidst volatility

The weak global markets played a spoilsport for the domestic bourses as they ended flat note today. The market had earlier extended yesterday’s robust gains by opening on a positive note and soon surging to hit its all-time high at the onset of the trading session. It had later slipped into the red before recovering from lower level.

Poor corporate earnings and renewed worries about credit hit Asian and European stocks on Tuesday, 16 October 2007, while record high oil prices threatened to add pressure to world growth.

Index heavyweight Reliance Industries (RIL) edged lower. ICICI Bank and Hindalco Industries surged in late trade. Power stocks surged. Bharti Airtel recovered from lower level. State Bank of India and Hindustan Unilever were under selling pressure. Mid-cap and small-cap indices outperformed Sensex. Market breadth was weak. Reliance Energy, Reliance Communications, NTPC and ICICI Bank hit fresh all-time highs.

The BSE 30-share Sensex lost 6.81 points, or 0.04%, to 19,051.86. It opened on a positive note today and soon rose to hit its all-time high of 19,174.45. At day's high of 19,174.45, Sensex had risen 115.78 points for the day. Sensex hit a low of 18,777.75 in mid-afternoon trade. At day’s low of 18,777.75, Sensex had lost 280.92 points for the day.

The broader based S&P CNX Nifty was down 2.35 points, or 0.04%, to 5,668.05. It hit all-time high of 5,708.35 in early trade.

Of the 30 shares of the Sensex, 12 moved up, while the remaining were trading down. The market breadth was weak on BSE: 1183 scrips advanced, 1538 declined, while 367 remained unchanged.

BSE clocked a turnover of Rs 9768 crore compared to Monday (15 October 2007)'s Rs 10,424.31 crore.

NSE futures & options (F&O) segment clocked a turnover of Rs 90751.74 crore today, 16 October 2007 compared to a turnover of 76,830.02 crore on Monday, 15 October 2007.

Nifty October 2007 futures were at 5,668, a discount of 0.05 points over the spot price of 5,668.05.

The BSE Mid Cap index rose 0.85% to 7,782.67 and BSE Small Cap index rose 0.47% to 9,356.13. Both these indices outperformed market.

BSE Bankex (up 2.75% to 9,974.13), BSE Capital Goods (down 0.03% to 17,113.94), BSE Realty (up 1.1% to 10,187.31), BSE Health Care (up 0.31% to 3,854.02), BSE Metal (down 0.27% to 16,156.67) outperformed Sensex.

BSE PSU index (down 0.22% to 9,136.32), BSE IT index (down 1.77% to 4,629.09), BSE Auto (down 0.26% to 5,598.78) underperformed Sensex.

Hindalco Industries rose 4.55% to Rs 197.45. It hit a 52 week-high of Rs 201.40 today.

Banking stocks gained. ICICI Bank rose 5.48% to Rs 1,156.75 and was the top gainer from the Sensex pack. It hit an all-time high of Rs 1,179.90 today. The stock surged on reports that bank’s private equity arm ICICI Venture Funds Management will float a $2 billion real estate fund next month.

HDFC Bank rose 0.95% to Rs 1,504.60. However, State Bank of India declined 1.67% to Rs 1,924.35.

India’s largest private company in terms of market capitalization and oil refiner Reliance Industries (RIL) declined 0.59% to Rs 2,648.30. The stock came off session's high of Rs 2,699. It hit a low of Rs 2,617.10

Bharti Airtel declined 1.5% to Rs 1,109.80. It recoverd from day's low of Rs 1,090.25.

Infosys was down 3.14% to Rs 1,868.25 and was the top loser from Sensex pack. The stock came off session's low of Rs 1,843.10.

Hindustan Unilver (down 3.08% to Rs 212.45), Mahindra & Mahindra (down 2.34% to Rs 814.80), Larsen & Toubro (down 2.02% to Rs 3,346.25) edged lower.

Power stocks surged. NTPC rose 1.96% to Rs 231.25. It hit an all-time high of Rs 234.90 today. Power Grid Corporation India (up 9.93% to Rs 126.80), Tata Power Company (up 23.49% to Rs 1,370.90) edged higher.

Tata Power Company galloped 23.49% to Rs 1,370.90 on reports that it is one of the bidders for 4,000-mega watt Krishnapatnam ultra mega power project in Andhra Pradesh.

Reliance Energy rose 3.09% to Rs 1,904.40. It hit an all-time high of Rs 1,959 today.

Maruti Suzuki India rose 2.28% to Rs 1,186.80.

Reliance Communications rose 1.06% to Rs 760.65. It hit an all time high of Rs 778.50 today.

Welspun Gujarat Stahl Rohren was down 0.21% to Rs 338.95 on reports that a private equity firm bought 5% stake in the company through secondary market route.

Patel Engineering rose 16.95% to Rs 764.65, on signing memorandum of understanding with government of Arunachal Pradesh for setting up a 100-mega hydro electric power project.

TCS was down 0.52% to Rs 1,068.10 after it reported 6.82% growth in net profit to Rs 1147.11 crore in Q2 September 2007 over Q1 June 2007.

Mercator Lines rose 5.46% to Rs 101.40 on reports the company is planning a foray into the lucrative area of dredging.

Housing Development & Infrastructure moved declined 1.11% to Rs 756.65 after the company said it received a slum development project.

Reliance Industrial Infrastructure jumped 5% to Rs 2384.90 despite posting a mere 4% rise in net profit in Q2 September 2007 over Q2 September 2006.

Shree Dinesh Mills (up 20% to Rs 1,798.65), Parry Agro Industries (up 20% to Rs 1,594.05), GSB Finance (up 20% to Rs 12.72) and Ambika Cotton (up 20% to Rs 184.20) edged higher.

Peninsula Land (down 79.02% to Rs 128.15), Sky Industries (down 9.75% to Rs 104.10) and Toyo Rolls (down 15.69% to Rs 267.95) edged lower.

Power Grid Corporation of India was the volume topper on BSE, notching total volume of 3.55 crore shares. Tata Teleservices (Maharashtra) clocked volume of 3.52 crore shares. IFCI came third in terms of total volumes on BSE. The stock declined 2.67% to Rs 85.80 on 1.76 crore shares. Reliance Natural Resources clocked volumes of 1.71 crore shares. The stock slipped 0.42% to Rs 95.65. Reliance Petroleum was the fifth most traded counter with volumes of 1.21 crore shares. The stock rose 1.30% to Rs 183.40

European markets opened weak today. France’s CAC 40 (down 0.94% to 5,753.60), Germany’s DAX (down 0.36% to 7,939.45) and UK’s FTSE 100 (down 0.47% to 6,611.60) edged lower. European stocks fell after telecoms equipment group Ericsson warned of lower-than-forecast third-quarter earnings. The Ericsson warning added to pressure that set in on Monday, 15 October 2007, when banking giant Citigroup issued a gloomy outlook mainly based on credit worries.

Asian markets were mostly in the red today 16 October 2007. Japan's Nikkei (down 1.27% at 17,137.90), Singapore's Straits Times (down 1.33% at 3,810.72), Hong Kong's Hang Seng (down 1.98% at 29,954.55) and South Korea's Seoul Composite (down 1.46% at 2,005.76) declined. Taiwan's Taiwan Weighted (up 0.78% at 9,592.47) advanced.

Crude oil prices held firm above $86 a barrel on Tuesday, 16 October 2007 after soaring nearly 3% to a record high on Monday, extending its recent rally to a sixth day amid tension between Turkey and Iraq plus anxiety over winter supplies. US crude rose 12 cents to $86.25 a barrel. London Brent crude rose $2.20 higher at $82.75.

TCS, Axis Bank, Indian Bank, Welspun Gujarat, Reliance Industries, IDFC, Consumers

TCS, Axis Bank, Indian Bank, Welspun Gujarat, Reliance Industries, IDFC, Consumers

Market Mantra and Future-O-Scope

Market Mantra and Future-O-Scope

Mastek Ltd

Mastek Ltd

Market Outlook

Market Outlook

Pre Market Watch

Indian market is likely to have a positive opening as the Asian market is trading mixed. On Monday, the Indian markets closed on a strong positive note as the BSE Sensex closed with hand some gains of 639.63 points at 19,058.67 while Nifty jumped by 242.12 points to close at 5,670.40. We expect the market may consolidate its gains at higher levels.

Monday, the US markets closed in a negative territory. The Dow Jones Industrial Average (DJIA) dropped by 108.28 points to close at 13,984.80. The S&P 500 (SPX) index decreased by 13.09 points to close at 1,548.71 while the NASDAQ Composite (RIXF) fell 25.63 points to close at 2,780.05.

Indian ADRs ended in mixed territory. In technology sector, Patni computers fell (2.89%) along with Infosys by (2.46%), Wipro by (1.5%) while Satyam grew by (0.11%). In banking sector, HDFC bank and ICICI bank advanced by (2.36%) and (2.21%) respectively. In telecommunication sector, VSNL and MTNL dropped by (1.90%) and (1.07%) respectively.

The major stock markets in Asia are trading mixed. Hang Seng is trading higher by 159.89 points at 29,700.67 while Japan''s Nikkei slipped by 175.79 points to trade at 17,182.36. Singapore''s Straits Times index fell 16.41 points to trade at 3,845.61. Seoul Composite trading up by 2.85 points to trade at 2,038.24.

Yesterday, FIIs stood at the net buyer as the gross equity purchased was Rs.5,510.90 (in crores), and the gross debt purchased was Rs226.10 (in crores) as against the gross equity sold was Rs4,729.90 (in crores) and the gross debt sold was Rs0.00 (in crores). The net investment of equity was Rs781 (in crores) and the net debt investment was Rs226.10 (in crores).

Today, Nifty has support at 5,572 and resistance at 5,739 and BSE Sensex has support at 18,767 and resistance at 19,246.

Caution should be exercised

After posting significant gains of over 600 points in the last session, buying interest may continue on the back of a firm trend. However, caution should be exercised as the market may move in tandem with global indices which are currently prone to higher inflation and rising oil prices. Investors should also take into account the prevalance of strong intra-day volatility. All the key Asian indices have lost ground in the ongoing trades and are down around 0.50% each. Among the key local indices, the Nifty could test higher levels at 5600 while it has a support at 5400. The Sensex has a likely support at 18430 and may face resistance at 19000.

US indices tanked on Monday, with the Dow posting its biggest one-day loss in more than a month, after Citigroup's weak profit report and record-high oil prices sparked a big selloff., while the tech-laden Nasdaq declined sharply to close 26 points lower at 2780.

Indian floats had a mixed outing on the US bourses. Satyam, Dr Resddy's Lab, ICICI Bank and HDFC Bank gained around 0.5-2% each while Infosys, Wipro, Tata Motors, MTNL, VSNL and Rediff dropped over 1-2% each.

Crude oil jumped nearly 3% to a record over $86 a barrel on Monday as fresh tensions in the Middle East added to worries of a supply crunch when cold weather stokes up heating demand this winter, with the Nymex light crude oil for November delivery rising by $2.44 to close at $86.13 per barrel. In the Commodity space, the Comex gold for December delivery gained $8.40 to settle at $762.20 an troy ounce.

Profit booking may emerge at higher level

Profit booking is likely to emerge at higher level after a sharp recent rally. The market has witnessed a solid surge over the past few weeks. From a low of 13,989.11 on 21 August 2007, Sensex rose 5,069.56 points or 36.23% in a short while to lifetime closing high of 19,058.67 on 15 October 2007. Heavy FII buying and anticipation of robust set of earnings triggered the solid rally.

Asian markets were trading mixed today, 16 October 2007. Japan's Nikkei (down 1.01% at 17,182.36), Singapore's Straits Times (down 0.42% at 3,845.61), declined. However, Hong Kong's Hang Seng (up 0.54% at 29,700.67), Taiwan's Taiwan Weighted (up 0.93% at 9,607.30) and South Korea's Seoul Composite (up 0.14% at 2,038.24) advanced.

US market ended lower on Monday, 15 October 2007 as oil kissed $86 mark and Citigroup issued fourth quarter earning warning. The Dow Jones industrial Average closed lower by 108.28 points at 13,984.80. The Nasdaq Composite Index, finished lower by 25.63 points at 2,780.05. S&P 500 finished lower by 13.09 points at 1,548.71.

The BSE 30-share Sensex surged 639.63 points, or 3.47%, to 19,058.67 on Monday, 15 October 2007, a record closing high. It hit an all time high of 19,095.75 in late trade on that day. The broader based S&P CNX Nifty was up 242.15 points, or 4.46%, to 5,670.40, a record closing high, on Monday, 15 October 2007. It hit a all-time high of 5,682.65 in late trade on that day.

As per provisional data, foreign institutional investors (FIIs) purchased shares worth a net Rs 2868.59 crore, while domestic institutional investors (DIIs) were net sellers of shares worth Rs 281.11 crore on Monday, 15 October 2007.

Crude oil prices held firm above $86 a barrel on Tuesday, 16 October 2007 after soaring nearly 3% to a record high on Monday, extending its recent rally to a sixth day amid tension between Turkey and Iraq plus anxiety over winter supplies. US crude rose 12 cents to $86.25 a barrel. London Brent crude rose $2.20 higher at $82.75

Daily Strategist - Oct 16 2007

Daily Strategist - Oct 16 2007

Morning Call

Market Grape Wine :

In House :

Nifty at a supp of 5639 and 5594 with resis at 5692 ,5732 and 5789

Mkt. to stay positive with positive biasness in the R group.

Intra day: Buy Abanoffshore above 4192 with a TGT of 4320 and a SL of 4149

Buy ambujacem above 152.50 with a TGT of 160 and a SL of 149.45

Outlook positive on RCOM and REL.(expexted TGT of REL :2200~2500)

F&O: Buy tatapower above 1121 with a TGT of 1170 and a SL of 1100

Out House :

Markets at a support of 18588 & 18786 levels with resistance at 19229 & 19393 levels .

Becareful and maintain strict stop loss as OIL at 86$ and CRR hike expected book profit at higher levels .

Buy : RIL

Buy : REL

Buy : Tisco & Sail bullet

Buy : RComm & RNRL

Buy : Divis

Buy : IBUlls

Buy : Centextile

Buy : Skumar & Aban

Dark Horse : RComm , ABAN , SKumar , REL , IFCI , RIL , Centextile , Maruti & SBIN

Bullet for the Day : IOLBroad , REL & Aban with stop loss .

Daily Technicals - Oct 16 2007

Daily Technicals - Oct 16 2007

HDIL may move up in today's session

The following stocks may see action in today’s trade.

Private equity firm 3i, has reportedly bought a 5% stake in Welspun Gujarat Stahl Rohren for Rs 350 crore. Report suggests, the fund acquired shares from secondary market.

ICICI Venture Funds Management is reportedly floating a $2 billion real estate fund. The fund, which will be launched next month, will have tenure of ten years and the money will be invested in projects within three years.

Housing Development and Infrastructure (HDIL) has reportedly won the bid for 276 acres of slum land near Mumbai international airport.

Wockhardt is reportedly in talks to acquire US drug maker Morton Grove Pharmaceuticals Inc, a company that makes prescription liquid pharmaceutical products.

Apollo Tyres is likely to be the after-sales partner for the Tata Rs 1 lakh car. Apollo Tyres is reportedly planning to commence its association with Tata’s Rs 1 lakh car project as after-sales partner and later graduate to an original equipment partners.

TCS reported good Q2 results. TCS' consolidated net profit as per US GAAP rose 5.18% to Rs 1246.93 crore on 8.4% growth in revenue to Rs 5639.84 crore in Q2 September 2007 over Q1 June 2007. The results hit the market after trading hours on Monday, 15 October 2007.

The following firms will announce results today: Blue Dart, IDBI, Jubilant Technologies, Reliance Petroleum, Shasun Chemicals and HCL Technologies.

Foreign institutional investors were net buyers of equity worth Rs 2868.59 crore on Monday, 15 October 2007 while domestic institutional investors sold Rs 281.11 crore of equity on that day, according to provisional data released by NSE.

Daily Call - Oct 16 2007

Daily Call - Oct 16 2007

Reliance Power, Mudra Port Sez, Rathi Bar - more grey market premiums

Reliance Power 48 to 50 ( keeps on increasing)

Mudra Port & Sez - 240 to 250 (price not issued)

Dhanus Tech 295 90 to 95

Supreme Infra 108 80 to 85

Saamya Biotech 10 11 to 12

MAYTAS Infra 370 150 to 160

Circuit Systems 35 7 to 8

Rathi Bars 35 3 to 4

Trading Calls

Nifty (5670) Sup 5539 Res 5802

Buy HDIL (765) SL 759
Target 777, 780

Buy CESC (575) SL 570
Target 585, 587

Buy MTNL (168) SL 164
Target 174, 176

Sell Patni (470) SL 475
Target 460, 458

Sell IOC (450) SL 455
Target 441, 439

Staying Alive- morning song for bears

A lifetime of happiness ! No man alive could bear it; it would be hell on earth – GB Shaw.

The bulls sure don’t want hell in the markets. They may just give the bears a few moments of fame. No amount of warnings seem to stop the bulls. The Finance Minister's cautionary words or the bomb hoax are dismissed too easily thanks to liquidity. Today, we see a slightly lower opening given the declines in the US and Asian markets. But, powered by the strong undercurrent, the bulls are most likely to fight back if not today, expect them tomorrow.

The bears have been thrashed like the Aussie cricket has done to our men in blue. There may be an odd day when the bulls might want to take their foot off the accelerator. But, on the whole the rally is here to stay and the pace of it will keep on surprising the most experienced of the market pundits.

Of course, the relentless advance over the past couple of months or so has been fueled by non-stop inflow of foreign capital money. This trend looks set to continue for a while before there is some cooling. Backed by the strong outlook on the Indian economy, good momentum in corporate earnings growth and reduced concern on the political front, the key indices will continue to break new grounds and conquer new frontiers.

Retail investors may just shy away and will be scared to enter at these levels. In fact, Mutual Funds have been net sellers even as FII inflows continue unabated. We advise investors to hold on to quality stocks and use the buoyancy to get rid of the weak ones.

Results Today: Aztecsoft, Blue Dart, Chettinad Cement, Goa Carbon, HCL Tech, IDBI, Jubilant Organosys, Kajaria Ceramics, Madras Aluminium, Shasun Chemicals, Surana Industries, Tata Sponge and ZF Steering.

US stocks declined on Monday, with the Dow Jones Industrial Average posting its biggest one-day loss in more than a month, after Citigroup's weak profit report and record-high oil prices sparked a big sell-off.

Citigroup, the largest US bank, posted its steepest loss since Aug. 28 after CFO Gary Crittenden said late payments on home loans may worsen in the fourth quarter.

After falling to session lows in late afternoon, stocks managed to stabilize and shave off some losses going into the close.

The S&P 500 Index lost 13 points, or 0.8%, to 1,548.71. Energy companies posted the only advance among 10 industry groups in the index after the price of oil climbed to a record.

The Dow tumbled 108 points, or 0.8%, to 13,984.8. The Nasdaq Composite Index fell 26 points, or 0.9%, to 2,780.05.

US light crude oil for November delivery rose as high as $86.20 a barrel, an intra-day record, before pulling back a bit to end at $86.13, a new record close. Heating oil and natural gas prices jumped as well.

Market breadth was negative. On the New York Stock Exchange, decliners beat advancers three to one as 1.29bn shares changed hands. On the Nasdaq, losers topped winners 7 to 3 on volume of 2.02bn shares.

Treasury prices inched higher, lowering the yield on the benchmark 10-year note to 4.67% from 4.68% late on Friday. In currency trading, the dollar fell versus the euro and gained versus the yen.. COMEX gold for December delivery rose $8.40 to settle at $762.20 an ounce.

European shares lost ground, with consumer-electronics giant Philips a notable decliner, while gains from the oil sector cushioned losses. The pan-European Dow Jones Stoxx 600 index lost 0.9% at 387.07. The UK FTSE 100 closed down 1.3% at 6,644.50, the German DAX 30 declined 0.9% to 7,969.47 and the French CAC-40 lost 0.6% at 5,807.44.

Brazilian stocks finished higher, buoyed by a surge in commodity prices, while Mexican equities were weighed by a tumble on Wall Street. Brazil's Bovespa gained 0.8% to end at 62,969.44. In Mexico, the IPC index lost 0.4% to close at 32,355.86. Argentina's Merval logged a gain of 0.7% at 2,262.11 and Chile's IPSA rose 0.6% to 3,414.67.

Asian stocks were a little soft this morning on renewed concern that a US housing slump will cause losses at global financial companies. The Morgan Stanley Capital International Asia-Pacific Index lost 1.1% to 167.10 at 10:44 a.m. in Tokyo, the most since Sept. 18, as nine of its 10 industry groups fell. The Nikkei 225 Stock Average slid 1.2%, while South Korea's Kospi index slipped 0.6%.

Life after 19k

The party continued on Dalal Street as bulls conquered new milestones. Benchmark Sensex recorded its fastest 1,000 points rally. After reaching the 18k mark in just six trading session’s bulls took over the 19k mark in just four trading sessions also marking its second highest single day points ever.

Among the 30-scrips of Sensex, RIL, ICICI Bank, ONGC and Bharti Airtel were among the major gainers. However, Hindustan Unilever and IT bellwether Infosys were the major losers.

Among the BSE sectoral indices BSE Metal index was the top gainer, the index was up over 9%. BSE PSU index (up 5.3%) and BSE Bankex index (up 4.09%)

Major Contributors during the 18 to 19k journey

RIL was the major contributor it contributed 135 points, ICICI Bank 120 points, ONGC 119 points, L&T 108 points and Bharti Airtel 96 points.

Finally, BSE 30-share benchmark Sensex ended 639 points higher to close at 19,058. NSE Nifty added 242 points to close at 5,670.

BHEL spurred by over 3% to Rs2415 after the company announced that they have secured order for 2 gas turbines units. The scrip touched an intra-day high of Rs2445 and a low of Rs2335 and recorded volumes of over 13,0,000 shares on NSE.

Welspun Gujarat advanced by 1% to Rs339 after the company announced its Q2 net profit at Rs825mn up 146% and sales at Rs9.27bn. The scrip touched an intra-day high of Rs353 and a low of Rs333 and recorded volumes of over 18,00,000 shares on BSE.

Jai Corp was locked at 5% upper circuit to Rs1076.85 after the founders of the company sold 21.9mn shares. The scrip touched an intra-day high of Rs1076.85 and a low of Rs1030 and recorded volumes of over 2,00,00,000 shares on BSE.

Nitco Tiles surged by over 5% to Rs293. The Board of Directors of the company announced that they would consider Raising FII limit to 66%. The scrip touched an intra-day high of Rs298 and a low of Rs268 and recorded volumes of over 1,00,000 shares on NSE.

Jindal Drilling rallied by over 7.5% to Rs1179 after the company announced that it secured new drilling contract from ONGC. The scrip touched an intra-day high of Rs1260 and a low of Rs1119 and recorded volumes of over 47,000 shares on NSE.

JP Associates advanced 1.5% to Rs1276 after the company declared that hey would split each stock in to 5. The scrip touched an intra-day high of Rs1328 and a low of Rs1261 and recorded volumes of over 14,00,000 shares on NSE.

Metal index was the star performer of the day as the index surged over 9%. After cut in the interest rates by FED metal prices are on a constant rise and with the Chinese Government imposing taxes on steel exports the view for Indian Steel manufacturers have improved. Tata Steel led from front, the scrip rose over 7% to Rs912, Hindalco surged over 5% to Rs188 and JSW Steel jumped by over 11% to Rs986.

Banking stocks were among the major gainers. SBI surged over 4.5% to Rs1953, HDFC Bank advanced 4.6% to Rs1499 and ICICI Bank added 4% to Rs1097. Bank of India, Corp Bank and PNB were the major gainer among the Mid-Cap stocks.

Oil exploration stocks were in demand as crude oil was trading at a record. Oil & Gas index gained 4.5%. ONGC rose over 8.5% to Rs1190; Reliance Industries added 4% to Rs2666.

However, Oil refinery stocks were on the receiving end, HPCL dropped 3.2% to Rs246, BPCL was down 4.4% to Rs360 and IOC slipped 1% to Rs449.

Stocks in News:

Petronet LNG is diversifying into power sector by setting up a gas based power plant to generate 1,100 MW of power.

ONGC has tied up with Ocean Rig (a Norwegian company) for supply of two rigs on a nomination basis for a sum of Rs81.8bn.

RIL is in discussions with four global players for partnerships to explore new regions in the US, South America and West Asia.

TCS is targeting 20 large deals which are above $50mn.

Apollo Tyres is likely to be the after-sales partner for Tata’s 1 lakh car.

Wockhardt is set to acquire US drug maker Morton Grove Pharmaceuticals Inc for $70mn.

UCO Bank is planning to raise Rs4.5bn via FPO during Q4 FY08.

Future Group is planning a 50:50 JV with Mauritius based Aeoterm Logistics.

HDIL has won the bid for developing 276 acres of slum land near Mumbai International Airport.

IFCI has decided to offer 30-odd banks and financial institutions, which helped in restructuring its liabilities, the option to convert a part of their debt worth Rs14.8bn into equity.

JSW Steel has received a permit to mine iron ore for its planned 10mn ton plant in Jharkhand.

Kinetic Motors plans to issue 8.71 lakh preferential shares to San Yang Motors, post which the latter’s holding in the company will increase to 16%.

Ashok Leyland is planning a 49:51 JV with a Black Economic Empowerment Partner to introduce products like 4x4s and luxury buses in South Africa.

HDFC is likely to finalize Ergo, the insurance arm of Munich Re, as its 26% foreign partner for the general insurance business.

Prime Minister Manmohan Singh has formally conveyed to US President George Bush about difficulties to push through the nuclear deal.

The Government is planning to keep the equity raised from ADRs and GDRs out of the FDI cap for select sectors.

The Delhi Government has slashed electricity rates by one rupee for domestic consumption up to 150 units a month.

The DoT is planning to freeze the amount of spectrum per operator. Also, operators might be asked to pay for more than 10Mhz capacity.

Sugar production in India is estimated to increase by 3.9% yoy to 29.3mn tons in 2007-08.

Fund Activity:

FIIs were net buyers of Rs28.69bn (provisional) in the cash segment on Monday while the local institutions pulled out Rs2.81bn. In the F&O segment, foreign funds were net buyers at Rs5.79bn.

FIIs were net buyers of Rs7.81bn in the cash segment on Friday. With this, their net investment in the month has crossed US$4.5bn and year-to-date the same is US$16.74bn.

Major Bulk Deals:

Citigroup has bought Bata India; Swiss Finance Corp and Franklin Templeton MF have picked up Consolidated Construction while UTI has sold the stock; Lehman Brothers has sold Genus Power; Goldman Sachs has purchased Greenply Industries; Prudential ICICI MF has bought Hindustan Dorr Oliver; Merrill Lynch, Goldman Sachs, Barclays, Morgan Stanley, Citigroup and Birla MF have bought Jai Corp; Citigroup has also picked up Marg Construction; PNB has purchased XL Telecom.

Upper Circuit:

RIIL, Tourism Finance, ITD Cementation, Lloyd Steel, Deep Industries, Bartronics, Binani Cement, Kothari Products, Bombay Burmah, Carol Info, Prakash Industries, Jai Corp, McNally Bharat and Karuturi Networks.

Lower Circuit:

Dhanalakshmi Bank.

High crude price weighs on US stocks

Market ends lower as oil kisses $86 mark and Citigroup issues fourth quarter earning warning

Warning from Citigroup and higher crude prices weighed on the US stocks today and the indices closed lower for the day ending Monday, 15 October, 2007. After opening slightly higher for the day, indices plunged in the morning hours in reaction to Citigroup’s earnings warning. But in the final hours, market tried recovering part of its losses. Crude oil crossed the $86/barrel mark for the first day ever.

The Dow Jones industrial Average closed lower by 108.28 points at 13,984.8. The Nasdaq Composite Index, finished lower by 25.63 points at 2,780.05. S&P 500 finished lower by 13.09 points at 1,548.71.

Twenty-three of thirty Dow stocks ended in red. General Motors was one of the main losers. Intel and Exxon Mobil were a couple of the seven Dow winners.

After the opening bell, the indices registered little gains. But soon the earnings report from Citigroup started taking its toll on the indices.

Citigroup reported that third quarter net income dropped 57%. The company's profits were above Wall Street estimates. But the main reason behind this was estimates had come down so much due to problems in the fixed income area.

But the company’s acknowledgment that consumer credit markets will continue to deteriorate in the fourth quarter was what kept haunting the market for the entire day.

Crude oil futures rose today and crossed the $86/barrel mark for the first time ever as fresh problems surfaced between Turkey and Iraq. The problems gave birth to concerns that this might lead to slowing down of shipments as peak season is commencing and would call for more demand for meeting the peak heating demand.

Crude-oil futures for light sweet crude for November delivery closed at $86.13/barrel (higher by $2.44/barrel or 2.9%) on the New York Mercantile Exchange. Futures reached $86.22 during intra day trading.

Prices were also boosted by some comments from OPEC after the Organization of Petroleum Exporting Countries said production outside the group will be lower than previously forecast. OPEC said that non-OPEC supply will average 50.29 million barrels a day this year, down 28,000 barrels from last month's estimate.

Volume on the New York Stock Exchange topped 1.2 billion, with declining stocks ahead of advancers more than 2 to 1. On the Nasdaq, more than 2 billion shares were exchanged, and declining issues topped advancing stocks 5 to 2.

For tomorrow, investors will look for corporate financials to help set the tone of trading. Before the bell, Johnson & Johnson is scheduled while IBM and Intel feature after the close.

Daring Derivatives - Oct 16 2007

Daring Derivatives - Oct 16 2007

19K - the madness

The first million is always the hardest to make; the rest come looking for you. It took four years for the Sensex to touch its first 1,000-mark in 1990, and just four days to sprint from 18,000 to 19,000. Investors and bystanders continue to watch with disbelief as the index shattered each successive 1,000-mark with growing ease.

Does it make sense? Where is it headed? How long can it last? Sections in the market are beginning to ask these questions and the finance minister has already sounded a word of caution. But even as the stunning rally has baffled most market watchers, bulls are not showing the slightest signs of exhaustion.

Friday’s correction was a distant memory as the 30-share Sensex surged 639.63 points or 3.5% to close above 19k for the first time, at 19,058.67. During the day, it touched a new peak of 19,095.75. The 50-share Nifty touched a new high of 5,682.65, before settling at 5,670.40, up 242.15 points or 4.5%. Before the day’s session was over, the subject of discussion in most dealing houses was not about valuations, politics or earnings. It was about when the market would touch the 20,000-mark and whether that would be the peak.

“Everybody is searching for a top, but you never get it when everyone is looking for it at the same time,” says Ramesh S Damani, BSE broker. He expects steel and cement shares to lead the rally from hereon. Adding that he was not worried by the pace of the rally, Mr Damani said: “The market does not appear overbought even at current levels and bulls could be in for a pleasant surprise.”

Such optimism may not appear misplaced given that the tidal wave of FII money is not showing any signs of ebbing yet. To a great extent, a rising rupee has made it a self-fulfilling prophecy, with more foreign money coming to catch the currency upside.

According to provisional data, foreign funds net bought Rs 2,868 crore worth of shares on Monday, pushing frontline stocks like Reliance Energy (+13%), Reliance Communications (+5%), Tata Steel (+7%), ONGC (+9%), SAIL (+15%) and HDFC Bank (+4%) to new peaks. And while it did not touch a new high, index heavyweight Reliance Industries (+4%) was a major contributor to the rally.

RIL, REL and Reliance Communications have been the driving forces of the last 2,000-point rally in the Sensex. The meteoric rise in the prices of these three stocks over the past month has sparked a debate over valuations, but bears appear wary of going short on these stocks. Brokerage house Goldman Sachs has downgraded its rating on Reliance Industries to ‘neutral’ saying the current price levels did not offer an attractive entry point.

“While we remain long-term positive on RIL primarily on the back of its E&P (exploration and production) potential, we believe the market is now already pricing in future exploration success into the next 3-4 years -- increasing downside risk from current levels, in our view,” the Goldman Sachs note to clients said.

Unlike during the technology stocks-led rally seven years ago, broking houses have been more circumspect this time around, and there have been a fair amount of downgrade reports. But most fund managers are in no mood to heed the calls for restraint, and so far, they have been proven right.

Secondline shares kept pace with the rise in top tier stocks, something that had not been witnessed for some time. The BSE-100 and BSE-200 indices gained close to 4%. “Lack of market breadth was a cause for worry, but even that is now showing signs of improvement,” said Mr Damani.

On the corporate earnings front, TCS’s second quarter numbers -- though not spectacular -- were in line with market expectations. IT stocks in general continued to underperform, with Satyam, TCS and Wipro gaining around 1% each, while Infosys ended marginally lower than its previous close.

Via ET

Daily Technicals, Futures, Outlook - Oct 16 2007

Daily Technicals, Futures, Outlook - Oct 16 2007

Gold prices touch 28 year high

Precious metals close mixed as crude prices just shoot up

Precious metal prices closed mixed today. Gold prices increased but silver prices fell at New York. Gold prices increased to record level since 1980. Prices increased after crude futures touched all time high of $86/barrel and the greenback weakened against its major rival currencies boosting the appeal for the precious metal. Gold has traditionally been used as a safe-haven asset against rising inflation.

Comex Gold for December delivery rose $8.4 (1.1%) to close at $762.2 an ounce on the New York Mercantile Exchange today, Monday, 15 October, 2007. The price crossed $765 during intra day trading. Gold gained 0.9% last week and was the metal’s 7th weekly gain in eight weeks.

Comex Silver futures for December delivery fell 4.8 cents (0.4%) to $13.855 an ounce. The metal has climbed 7.1% this year.

Crude prices increased today and reached an all time high after fresh tension surfaced between Turkey and Iraq. On the other hand, dollar weakened again against the euro ahead of the G7 meeting this week and on speculation interest rates in Europe will rise faster than in the U.S.

In recent times, the weakening of dollar have continued to affect the price of the metal. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices.

Dollar had been witnessing a free fall since Federal Reserve cut interest rates by half percentage point. The U.S. currency has lost 6.9% against the euro this year.

Gold prices have jumped 15% during the third quarter and it is the most since 1999. The yellow metal has climbed 19% this year. Since the last rate cut, prices have gone up by more than 3.5%.

Last week, Citigroup raised its forecast for the average gold price this year to $684 an ounce from $672 and increased the 2009 estimate to $800 from $750. The 2010 estimate was raised to $820 from $594. The forecast for 2008 was left unchanged at $750.

At the MCX, gold prices for December delivery closed at Rs 9663 per 10 grams. The closing price is Rs 74 (0.8%) higher as against previous closing price. Prices rose to a high of Rs 9684 per 10 grams and fell to a low of Rs 9594 per 10 grams during the day’s trading.

At the MCX, silver prices for December delivery closed Rs 29 (0.16%) lower at Rs 18,279/Kg. Prices opened at Rs 18,340/kg and fell to a low of Rs 18,241/Kg during the day’s trading.

Crude at all time new high

Crude futures cross the $86 mark as fresh tension surfaces in Middle East

Crude oil futures rose today and crossed the $86/barrel mark for the first time ever as fresh problems surfaced between Turkey and Iraq. The problems gave birth to concerns that this might lead to slowing down of shipments as peak season is commencing and would call for more demand for meeting the peak heating demand.

For the day ending Monday, 15 October, 2007, crude-oil futures for light sweet crude for November delivery closed at $86.13/barrel (higher by $2.44/barrel or 2.9%) on the New York Mercantile Exchange. Futures reached $86.22 during intra day trading.

Prices climbed on reports that Turkey's military may attack Kurdish bases in Iraq, which has the world's third-largest oil reserves.

Brent crude oil for November settlement rose $2.24 (2.8%) to $82.79 a barrel on the London-based ICE Futures Europe exchange.

Prices were also boosted by some comments from OPEC after the Organization of Petroleum Exporting Countries said production outside the group will be lower than previously forecast. OPEC said that non-OPEC supply will average 50.29 million barrels a day this year, down 28,000 barrels from last month's estimate.

OPEC has said previously that a falling dollar justified higher prices because oil- producing countries sell crude oil in dollars and often buy goods in euros.

Heating oil and natural gas futures advance

Natural gas in New York advanced after crude oil rose to a record on concern supplies may be threatened by military action on the border of Turkey and Iraq. Gas for November delivery rose 47.1 cents (6.8%), to $7.445 per million British thermal units

Against this backdrop, heating oil for November delivery increased 6.17 cents (2.8%) to $2.3081 a gallon in New York.

At the MCX, crude oil for October delivery closed at Rs 3367/barrel, higher by Rs 74 (2.2%) against previous day’s close. Natural gas closed at Rs 290.8/mmtbu as against previous close of Rs 274.6/mmtbu (higher by 5.8%).

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.

Anand Jain ki Lottery - Jai Corp

15/10/2007 512237 JAI CORP LIM CITIGROUP GLOBAL MARKET M PVT LTD B 1349000 1036.00
15/10/2007 512237 JAI CORP LIM BIRLA MUTUAL FUND B 435000 1036.00
15/10/2007 512237 JAI CORP LIM DSP MERILL LYNCH FUND MANAGERS LTD B 464000 1036.00
15/10/2007 512237 JAI CORP LIM RINA JAIN S 7300000 1035.00
15/10/2007 512237 JAI CORP LIM SUSHMA JAIN S 7300000 1035.02
15/10/2007 512237 JAI CORP LIM LAXMI JAIN S 7000000 1036.36