Dead Presidents! - India Equity Research: Dec 13, 2007

Thursday, December 13, 2007

Brigade Enterprises IPO Oversubscription Details

Qualified Institutional Buyers (QIBs) - 18.2861 times

Non Institutional Investors - 4.8861 times

Retail Individual Investors (RIIs) - 5.5945 times

OVERALL - 13.07 times

Bulk Deal Watch

13-DEC-2007,ESABINDIA,Esab India Ltd.,FIDELITY TAX ADVANTAGE FUND,BUY,131937,470.00,-
13-DEC-2007,EVERONN,Everonn Systems India Lim,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,107000,737.59,-
13-DEC-2007,ISPATIND,Ispat Industries Limited,B R INTERNATIONAL/BHARATKUMAR RADHAKRISHNA RUIA,BUY,10058514,77.10,-
13-DEC-2007,PHILIPCARB,Phillips Carbon Black,GMO EMERGING MARKET,BUY,139898,278.96,-
13-DEC-2007,ESABINDIA,Esab India Ltd.,PRUDENTIAL ICICI MUTUAL FUND,SELL,243300,470.04,-
13-DEC-2007,ADHUNIK,Adhunik Metaliks Limited,BSMA LIMITED,SELL,500000,215.02,-
13-DEC-2007,SHIV-VANI,Shiv-Vani Oil & Gas Explo,FORTIS INVESTMENT MGT ASIA A/C FORTIS L FUND EQUITY BEST SEL,SELL,200030,612.24,-
13-DEC-2007,MARKSANS,Marksans Pharma Limited,UTI INDIA TECHNOLOGY VENTURE UNIT SCHEME,SELL,500000,192.80,-
13-DEC-2007,VISAKAIND,Visaka Industries Ltd.,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,180000,106.24,-

Market tanks 271 pts

The benchmark Sensex plunged by over 271 points on the Bombay Stock Exchange today on profit selling at existing higher levels.

The 30-share BSE barometer, after beginning the day on a promising note, fell back to close at 20,104.39, lower by 271.48 points, as stocks in oil and gas, capital goods and banking segments declined sharply.

The key-index rose to the day's high of 20,498.11 and a low of 20,065.63 points.

The National Stock Exchange index Nifty also dipped by 101.20 points to 6,058.10, after touching the day's high of 6,185.40 and a low of 6,040.40 points.

Trading sentiments were partly influenced by reports of weak trend in Asian stock markets, traders said.

European and Asian stock markets were down after the Wall Street ended higher, following major central banks seeking to soothe the global credit squeeze, they added.

Industrial Outlook positive

Finance Minister P Chidambaram described the industrial outlook as positive, a day after official figures showed an industrial production growth of 11.8 per cent in October as compared to a year ago period.

"My outlook is always positive," Chidambaram replied to a query about his outlook on the Index for Industrial Production (IIP) numbers.

He was talking to reporters after a meeting of the Cabinet Committee on economic affairs.

The Finance Minister had yesterday said the government has to wait for IIP numbers for November to reach any conclusion.

He had said April-October figure is still slightly lower than last year's numbers for the same period.

According to the official figures, the industrial production during October grew by 11.8 per cent from 4.5 per cent in the corresponding month last year.

However, for April-October period the growth worked out to be 9.7 per cent, marginally lower than 10.1 per cent recorded in the same period last year.

Alok Industries, ITC

Sensex ends down 270pts, ITC gains 4%

The Sensex opened with a huge positive gap of 122 points at 20,498, which turned out to be the high for the day.

A heavy bout of selling towards the close saw the index tumble to a low of 20,066 - an intra-day swing of 432 points.

The Sensex finally closed with a huge loss of 271 points (1.3%) at 20,104.

The BSE FMCG index gained nearly 2% (42 points) at 2232. The BSE Midcap and Smallcap indices also finished with gains at 9376 and 12,007, respectively.

The market breadth was positive - out of 2,928 scrips traded today, 1,843 logged gains and 1,059 declined.

INDEX LOSERS....

Bharti dropped over 6% (Rs 66) to Rs 988. ICICI Bank declined nearly 4% (Rs 48) to Rs 1,242.

Maruti slipped 3.5% (Rs 37) to Rs 1,038. Reliance was down nearly 2% (Rs 54) at Rs 2,833.

ONGC, Satyam, NTPC and BHEL also finished on a weak note today.

....AND GAINERS

ITC closed with a gain of over 4% at Rs 197. Tata Steel moved up 3% to Rs 889.

Cipla, Hindalco, Bajaj and HDFC also closed with gains today.

KOLTE PATIL ENDS DAY ONE WITH 25% GAIN

Kolte Patil was listed at a premium of 52% at Rs 220 as against the IPO price of Rs 145. The stock hit a high of 224 and low of Rs 175 before closing with a gain of 25% (Rs 36) at Rs 181.

MOST ACTIVE COUNTERS

Ispat was the most active counter with a turnover of Rs 365 crore followed by IFCI (Rs 275 crore), Mundra Port (Rs 268 crore), Lanco (Rs 199 crore) and Kolte Patil (Rs 198 crore).

Eveninger - Dec 13 2007

Post Market Commentary

The market tumbled towards the end of the trading session on the back of profit booking by the investors across the counters. Though the market opened on a strong note to touch its all time high but all of a sudden lost the grip to pare all its initial gains on the back of heavy selling pressure. Almost all the major sectoral indices closed in red except the Metal, FMCG and Health Care indices that attracts investors confidence to closed in green. The BSE Sensex touched its intraday high of 20,498.11 and low of 20,065.63 during the trading session. The BSE Sensex closed lower by 271.48 points at 20,104.39 and NSE Nifty fell 101.2 points to closed at 6,058.10. Once again both the BSE Mid cap and Small cap outperformed the benchmark indices to close up by 36.45 points and 122.34 points at 9,375.94 and 12,007.33 respectively. Overall, the market breadth was strong as 1,842 stocks are closed higher while 1060 stocks are closed lower.

BSE Metal index surged 138.65 points to close at 19,767.72. Scrips that gained are JSW Steel (7.84%), Bhushan steel (7.47%), Ispat industries (5.71%), Tata Steel (2.89%), Seas Goa (2.76%).

BSE Capital Goods slipped by 246.31 points to close at 20,061.96. Scrips that fell are Jyoti structures (3.13%), BEML (2.30%), Thermax ltd (2.41%), Suzlon energy (2.15%), SKF (1.11%).

BSE FMCG closed higher by 42.25 points at 2,231.77. Pushed up by Tata Tea (4.31%), ITC (4.12%), Britannia (1.79%), Godrej con (1.89%) and HUL (0.76%).

BSE Realty index closed lower by 139.78 points at 12,400.54. Pulled down by Penland (4.75%), Parsvnath (4.24%), Phoenix mill (3.60%), Anant raj (3.08%), Omaxe (2.69%) and Unitech (1.72%).

BSE Oil & Gas index dropped by 284.78 points to close at 12,867.24 as Essar oil (4.59%), GAIL (3.91%), BPCL (2.56%), RNRL (2.48%), RPL (2.31%) and ONGC (2.23%) closed lower.

BSE Bankex index fell 216.72 points to close at 11,495.40. Scrips that dropped are ICICI bank (3.70%), Andhra bank (2.64%), SBI (1.89%), Yes bank (1.22%), Oriental bank (1.51%).

Market Close: Profit taking sets in..

It was a disappointing day for the market with no clear support from global indices. Soon after a positive start in morning trades markets could not hold on gains and slipped into negative zone with selling pressure seen across the counters. Index pivotals like IT, oil and gas and Auto stocks were under pressure. FMCG, metal and realty stocks were firm and were attracting buyer?s attention. Midcaps continue to march ahead and outperformed the large caps. New entrant in the bourses Kolte patil closed at a premium after a strong start. Essar steel continued to nose dive for the second consecutive day after the promoters decided to delist the company. Indices managed to gain some strength in the final hours but momentum failed to sustain it which ended with a profit booking session down 300 points near to days low. The cues from global peers were weak as most of the Asia ended down as Taiwan ended down by 3.5% followed by Hang Seng down 3% while Europe remained subdued.

Sensex closed lower by 271 points at 20104.391. Weighing on the Sensex were the losses in Bharti Tele (987.8,-6 percent), ICICI Bank (1242.5,-4 percent), Maruti (1038.35,-3 percent), Satyam (421.05,-2 percent) and ONGC (1227.8,-2 percent). Losses were restricted by gains in ITC (196.9,+4 percent), Dr Reddys (710.6,+4 percent), TISCO (889.4,+3 percent), Cipla (203.75,+2 percent) and Hindalco (208.9,+2 percent).

Sayaji Hotels promoted by Dhamani group active mainly in the hotel and restaurant business rallied after some reports stated that a few well known investors intend to have a stake in the company?s restaurant business. Company has 2 hotels and are located in Indore and Baroda. There is also a chain of restaurants located across major metros in the country. Total room inventory with the company is of 263 rooms. 210 room are located in Indore and the remaining are in Baroda. Indore hotel has an average room rental of Rs 2,200 per day while Baroda?s room rental is of Rs 1,050 per day. The restaurant business of the company is managed through a 100% subsidiary "Sanchi Hotels Pvt Ltd" formed in October 2006. The restaurants are high end and are called "Barbeque-Nation". 5 restaurants are currently active across major cities in the country. Restaurant business seems to be the next revenue driver for the company. Sayaji is now in the transition phase and trades 26 times its trailing earnings. Sayaji can be considered as an investment option with 2-3 year time frame the back of favorable macro scenario. Do read our note on the company to know why. Sayaji closed higher by 5% for the day.

Garnet Construction (Garnet) a Mumbai based real estate and construction company seem to be picked by the bargain hunters. Garnet is a family owned business of Mr. K Kedia (MD)holding 56% in the company established in 1994. The company develops properties on Residential, Commercial and Industrial land. The projects are located within Maharashtra (Mumbai, Navi Mumbai and Lonavla). The Company has a Residential project at Magic Hills which is on the outskirts of Mumbai. The Magic Hill project is located at Panvel which is spread over 400 acres of land. The land is divided into residential project 250 acres and remaining 150 acre of commercial project to develop IT and Hospitality project. Our limited interaction with the company and its management will only bring confidence over time. We need to see whether the Management is capable of delivering what it says. Do read our note on the company for more details. However, The stock closed higher by 5% for the day.

Technically Speaking: Markets traded weak with no clear direction. Indices made a intraday high at 20498 and low at 20065. Tournover for the day was good at Rs 10160 Cr. Advances outnumbered declines in the ratio of 2:1. Technically we see 19800 levels the target for sensex.

GE Shipping, Economy, Banks

Nifty December futures strike all time high

Reliance Natural Resources December 2007 futures most active

Nifty December 2007 futures settled at 6,065, a slight premium of 6.90 points as compared to the spot closing of 6,058.10. The Nifty December 2007 futures hit a record high of 6181.90 in early trade.

The NSE's futures & options (F&O) segment turnover declined to Rs 70156.51 crore today, 13 December 2007 as compared to Rs 71,385.36 crore on Wednesday, 12 December 2007.

Reliance Natural Resources December 2007 futures was the most active contract with turnover of Rs 2422.70 crore. It settled at 178.50, a premium compared to the spot closing of 177.10.

Reliance Industries December 2007 futures were at premium, at 2836.70, compared to the spot closing of 2818.

Tata Steel December 2007 futures were at premium, at 891, compared to the spot closing of 88.15.

In the cash market, the S&P CNX Nifty slumped 101.20 points or 1.64% to 6,058.10. It hit an all time high of 6,185.40

Post Market Commentary

Equities snapped the two-day up-move on Thursday to close lower weighed down by oil & gas and banking stocks. Weak global markets and profit booking at record high levels kept the indices subdued.

Bombay Stock Exchange’s Sensex closed near its day’s low at 20,104.39 down 271.48 pts. It touched an intra-day low of 20,065. National Stock Exchange’s Nifty closed 101.20 pts down at 6,058.10. It touched an intra-day low of 6040. Buying in second line stocks saw BSE Midcap and Smallcap Index up 0.33 per cent and 0.93 per cent respectively.

Bharti Airtel (down 6.31%), ICICI Bank (3.27%), Maruti Suzuki (3.11%), ONGC (2.85%), Satyam Computer (2.5%) and Reliance Industries (2.36%) drifted the Sensex lower. ITC (up 3.38%), Tata Steel (2.75%), Cipla (1.93%), Bajaj Auto (1.69%), Hindalco Industries ( 1.36%) and Ranbaxy Laboratories (0.86%) were the gainers. Market breadth on BSE showed 1,849 advances and 1,053 declines.

Marg Constructions

Gayatri Projects

Sensex tanks on weak global cues

Despite touching all-time high in morning trades, the market shed over 400 points during the day and touched the day's low of 20,066 towards the close tracking weakness in international markets. The market was under selling pressure for the entire trading session, however small-caps received major buying support. After yesterday's gain of 84 points, the Sensex resumed on a positive note at 20,498, up 122 points, but lost ground as trading progressed. The market witnessed a steep fall towards the close as selling in heavyweights, oil, technology and banking stocks dragged the Sensex to its day's low. The Sensex finally wrapped up the session at 20,104, down 271 points. The Nifty closed at 6,058, down 101 points.

However, the market breadth was positive. Of the 2,928 stocks traded on the Bombay Stock Exchange (BSE), 1,848 stocks advanced, 1,054 stocks declined and 26 stocks ended unchanged. Except few, all the sectoral indices ended in the red. The BSE Oil & Gas index was the major loser and declined 2.17% at 12,867 followed by the BSE Teck index (down 2.10% at 3,880), the BSE Bankex index (down 1.85% at 11,495) and the BSE PSU index (down 1.59% at 10,083).

Except for a few select stocks, most of the front-line stocks succumbed to selling pressure. Among the major laggards Bharti Airtel shed 6.24% at Rs988, ICICI Bank dropped 3.70% at Rs1,243, Maruti Suzuki slumped by 3.45% at Rs1,038, Satyam Computer declined by 2.34% at Rs421, ONGC fell 2.23% at Rs1,228, BHEL tumbled by 2.15% at Rs2,592 and NTPC slipped by 1.97% at Rs246. ITC, however, advanced 4.12% at Rs197, Tata Steel gained 2.89% at Rs889, Cipla added 2.10% at Rs204, Hindalco moved up 1.58% at Rs209, Bajaj Auto surged 1.46% at Rs2,819 and HDFC added 1.08% at Rs3,137 while Ranbaxy, Mahindra & Mahindra, HLL and DLF ended with steady gains.

Over 4.77 crore Ispat industries shares changed hands on the BSE followed by GV Films (3.82 crore shares), Tata Teleservices (2.87 crore shares), IFCI (2.46 crore shares) and Spice Teleservices (1.50 crore shares).

Value-wise, Ispat Industries was the most actively traded counter on the BSE and registered a turnover of Rs365 crore followed by IFCI (Rs274 crore), Mundra Port (Rs267 crore), Lanco Infratech (Rs199 crore) and Kolte Patil Developers(Rs198 crore)

Aries Agro IPO Analysis

Aries Agro (AAL), promoted by Dr T B Mirchandani and his two sons, is a major manufacturer of micronutrient and other nutritional products for plants and animals. Its range of products comprise five categories: multi-micro nutrient fertilisers, chelated micro nutrient fertilisers, specialty soluble fertilisers, anti-bacterial products for agricultural use, and nutritional products for animals.

A pioneer in introducing chelated micronutrients and chelated zinc in the country, under the brands Agromin and Chelamin, respectively, AAL has developed in house bactericides for agriculture.

Besides primary macronutrients, secondary micronutrients are required for high yield of the agriculture crop. Though essential for growth, micronutrients are required in small quantities. AAL is a leader in the production of micronutrients, with hardly any competitors in the organised sector in the country.

With four manufacturing facilities in Bangalore, Mumbai, Hyderabad and Kolkata, AAL’s total production capacity is 21,600 tonnes per annum. It has 41 products under its umbrella. Strong trademarks protect these brands. These products are sold across 375 fertilizer-consuming districts in the country. The company has 25 branches with a distribution network comprising about 4,700 distributors and 65,000 dealers across the country.

New manufacturing units at Ahmedabad, Lucknow, Medak (Andhra Pradesh), and an additional one in Maharashtra will bring on stream 79,200 tonnes per annum of new capacity by October 2008.

With an aim to expand its global footprint, specially the Middle East, AAL is investing Rs 7.37 crore in one of its group companies Golden Harvest Middle East (FZC), incorporated in the UAE, to convert it into a subsidiary. Golden Harvest is setting up a facility in Sharjah to manufacture chelated micronutrients with a capacity of 10,800 tonnes per annum. It is also investing Rs 2.46 crore in another company, MAPCO Fertilizer Industries Free Trade Zone Company (MAPCO). MAPCO’s distribution reach in the Middle East will be used to sell the company’s micronutrients in those markets.

To distribute its products to the far-flung corners of the country, where it does not have a distribution network, AAL is planning to buy around 100 mobile vans at a cost of Rs 5.79 crore.

Strengths

Has been in the business of manufacturing and marketing plant nutrients since over three decades. During this period, acquired strong domain expertise, which is difficult for a new entrant to replicate.
Is a dominant player in the plant-nutrient space with minimal competition from the organised players.
Has an in-house R&D facility, equipped with infrastructure required to develop new products targeted at specific crop requirement.
Has an established distribution network spanning 375 fertilizer-consuming districts of the country. Has 4,700 distributors and more than 65,000 dealers.
Products are not subject to price control as other fertilisers.
Indian farmlands have one of the lowest yield rates in the world. Hence, there is good scope for improvement in yields by using micronutrients. Spread of organised retail and development of farm-to-consumer supply chain will encourage better yields through use of micronutrients.

Weaknesses

Being a feedstock industry for the agricultural sector, the business depends on the monsoons. Abnormal rainfall could have an adverse effect on the performance.
Increase in imported raw material cost could squeeze margin, as it would not be able to pass on the increase in prices to the final consumer.
Due to high working capital requirement, there was negative cash flow from operations in four of the last five years. Of the total debtors of Rs 26.71 crore, 46% were due for more than six months end March 207.
Defaulted in payment of dues to IFCI in the past and entered into a one-time settlement.

Valuation

AAL has set a price band of Rs. 120 to Rs 130 per equity share of Rs 10 each, translating into a PE of 17.9x at the lower price band and 19.4x at the higher price band on the year ending March 2007 (FY 2007) EPS of Rs 6.7 on post-IPO equity. There is no comparable listed company. Overall, the fertiliser-nitro sector enjoys P/E of 16 times, fertiliser-SSP (single super phosphate) sector trades at P/E of 13, and pesticides-medium/small industry trades at P/E of 7. Being the only listed focused player on the high growth segment of micronutrients, with massive capacity expansion plans, the scrip will get above

Market retreats from all time high

The market tumbled in the late trade following a sudden sell-off in blue-chip stocks, in sync with other markets across the globe. The day started on a firm note, with both the niche indices - BSE Sensex and S&P CNX Nifty striking record highs, but were not able to sustain at higher levels.

The market breadth, indicating overall health of the market was strong, despite the sharp fall, due to on strong buying momentum for small and mid-cap stocks.

FMCG, metal stocks rose. IT, power, Oil & Gas, capital goods & banking stocks declined. ITC & Tata Steel were top gainers while Bharti Airtel & ICICI Bank were top losers from Sensex pack. Reliance Industries declined sharply in late trade.

The 30-share BSE Sensex declined 271.48 points or 1.33% to 20,104.39. It opened with a upward gap to hit a all time high of 20,498.11 in early trade. At day’s high Sensex rose 122.24 points. It hit a low of 20,065.63 in late trade. At day’s low Sensex had lost 310.24 points.

The S&P CNX Nifty declined 101.2 points or 1.64% to 6,058.10.It hit a all time high of 6,185.40 in early trade.

Market breadth was strong on BSE. On BSE, 1,811 stocks advanced, 1,059 stocks declined and 28 stocks remained unchanged. 20 out of 30 stocks from the Sensex pack declined.

BSE clocked a turnover of Rs 9,873 crore in cash market today compared to yesterday’s Rs 9,614.65 crore.

Nifty December 2007 futures settled at 6,065, a slight premium of 6.90 points as compared to the spot closing of 6,058.10. The Nifty December 2007 futures hit a record high of 6181.90 in early trade.

BSE Mid Cap index rose 0.39% to 9,375.94. It hit a all time high of 9,460.50 today. BSE Small Cap index rose 1.03% to 12,007.33, It hit an all time high of 12,138.34 today. Both these indices outperformed Sensex.

BSE Consumer Durables index (down 1.27% to 6,052.12), BSE Capital Goods index (down 1.21% to 20,061.96), BSE Realty index (down 1.11% to 12,400.54), BSE Auto index (down 0.08% to 5,765.56), BSE Health Care index (up 0.68% to 4,202.18), BSE Metal index (up 0.71% to 19,767.72), BSE FMCG index (up 1.93% to 2,231.77) outperformed Sensex.

BSE IT index (down 1.59% to 4,284.37), BSE Bankex (down 1.85% to 11,495.40), BSE Oil & Gas index (down 2.17% to 12,867.24) underperformed Sensex.

India’s largest private sector firm by market capitalization & oil refiner Reliance Industries declined 1.88% to Rs 2,832.75.

Oil & Gas stocks declined sharply in late trade. Essar Oil (down 4.59% to Rs 295.30), Gail (India) (down 3.91% to Rs 520.65), ONGC (down 2.23% to Rs 1,227.80) & Reliance Petroleum (down 2.31% to Rs 223.75) edged lower.

Banking majors declined. ICICI Bank (down 3.7% to Rs 1,242.50) and HDFC Bank (down 1.48% to Rs 1,757.60), State Bank of India (down 1.89% to Rs 2,394.25) edged lower.

Capital goods stocks declined. Bharat Heavy Electricals (down 2.15% to Rs 2,591.50), Larsen & Toubro (down 1.14% to Rs 4,235.10) and Suzlon Energy (down 2.15% to Rs 1,966.85) edged lower.

Power stocks declined. NTPC (down 1.97% to Rs 246.05) and Tata Power Company (down 3.65% to Rs 1,307.40) Reliance Energy (down 1.05% to Rs 1,911.50) edged lower.

IT stocks declined. Infosys (down 1.55% to Rs 1,658.70), Satyam Computer Services (down 2.34% to Rs 421.05) and Wipro (down 1.06% to Rs 500.20 ) Tata Consultancy Services (down 1.84% to Rs 1,029.70) edged lower.

Cipla (up 2.1% to Rs 203.75) and Bajaj Auto (up 1.46% to Rs 2,818.65) edged higher.

Bharti Airtel (down 6.24% to Rs 987.80), Maruti Suzuki India (down 3.45% to Rs 1,038.35) edged lower.

FMCG stocks rose. ITC (up 4.12% to Rs 196.90) and Hindustan Unilever (up 0.76% to Rs 212), Tata Tea (up 4.31% to Rs 934.80) edged higher.

Metal stocks also inched up. JSW Steel (up 7.84% to Rs 1,334.65), Tata Steel (up 2.89% to Rs 889.40), Hindalco Industries (up 1.58% to Rs 208.95), edged higher.

Kolte Patil Developers settled at a premium of 26.95% to Rs 185.85 over the IPO price of 145 on its debut today. The stock will be placed in the B1 group on BSE. The company had fixed the IPO price at the top end of the Rs 125-145 IPO price band.

Mahindra & Mahindra rose 0.8% to Rs 794.10. As per reports Mahindra & Mahindra’s (M&M’s) all-Indian utility vehicle, Scorpio, will enter the quality-conscious US market, which is also the largest in the world with 15 million vehicles in annual sales. The company already has firm orders for 45,000 units of Scorpio for the first year, which is more than the 40,000 it sold in India in the last financial year. More importantly, 285 US dealers have signed up to sell the vehicle and are investing $178 million in setting up sales and service outlets.

European markets were trading weak today. France’s CAC 40 (down 1.86% to 5,636.33), Germany’s DAX (down 0.91% to 8,000.98) and UK’s FTSE 100 (down 1.85% to 6,438.30) edged lower.

Asian markets were trading lower today, 13 December 2007 on fears a quarter-point interest rate cut by the Federal Reserve announced on 11 December 2007 may not be enough to ward off a US recession. Japan's Nikkei (down 2.48% at 15,536.52), Hong Kong's Hang Seng (down 2.72% at 27,744.45), Taiwan's Taiwan Weighted (down 3.57% at 8,187.95), Straits Times (down 1.97% at 3,479.17), South Korea's Seoul Composite (down 0.6% to 1,915.90) edged lower.

US markets started the day sharply higher yesterday, 12 December 2007 fueled by news of Fed's plans to boost liquidity but eventually lost steam as negative developments out of the financial sector weighed on the broader market. The Dow Jones industrial average gained 41.13 points, or 0.31%, to 13,473.90. The Standard & Poor's 500 index rose 8.94 points, or 0.61%, to 1,486.59. The Nasdaq Composite index advanced 18.79 points, or 0.71%, to 2,671.14.

Back home, the Index of Industrial Production (IIP) jumped 11.8% in October 2007 from 4.5% in October 2006. IIP stood at 9.7% in April-October 2007 compared with 10.1% in April-October 2006. Industrial output data for September 2007 was revised upwards to 6.8% from 6.4%. The government released the IIP data early afternoon yesterday, 12 December 2007.

HEG, Tata Tea Trading Calls

Buy HEG above Rs 465-Rs 411. Stop Loss at Rs 400, target at Rs 537 and Rs 659.

Buy Tata Tea long term delivery at Rs 926-Rs 817. Stop Loss at Rs 740. Add further above Rs 1047, target Rs 1622 and Rs 2552.

Trading Call

Buy NDTV with a stop loss of Rs 400 for target of Rs 610

Buy S Kumars Nationwide with a stop loss of Rs 150 for targets of Rs 177 and Rs 215

Buy Zicom Security Systems on dips with a stop loss of Rs 182 for a short-term target of Rs 235

Market may remain choppy

The rally in the US markets and subdued Asian markets in morning trades may weigh on local indices in early trades and thereafter could exhibit volatility during the intra-day trades. However, FIIs remaining net buyers in equities for last few sessions and presence of strong bullish sentiment may add to the market advantage and help the market remain positive. Key local indices, the Nifty could test higher levels around 6200-6400 range in the short term and has a support in the range of 5740-5594 levels . The Sensex is likely to test 19300 on the downside while it may face resistance at 21000.

US indices finished slightly higher on Wednesday after the US Federal Reserve, the European Bank, the Bank of England, the Swiss Central Bank rushed to ease credit crunch by injecting cash into banking systems. The Dow Jones closing 0.31% higher at 13474 up 41 points, while the Nasdaq changed a little to close at 2671.

Crude oil prices rose on New York Mercantile Exchange on concerns that a decision by central bank to provide cash to financial institutions may not prevent an economic slowdown. The Nymex light crude oil for January delivery moved up by $4.37 to close at $94.39 per barrel. In the commodity space, the Comex gold for February series surged by $1.70 to settle at $818.80 a troy ounce.

Latest Grey Market Premiums

eClerx Services 270 to 315 45 to 50

BGR Energy 425 to 480 360 to 380

Transformers & Rectifiers 425 to 465 340 to 350

Brigade Enterprises 351 to 390 55 to 60

Jyothy Lab. 690 235 to 240

Burnpur Cement Ltd. 12 5 to 7

Kolte Patil 145 85 to 95

Kaushalya Infra 60 11 to 12

SVPCL 42 - 5 to -7

Aries Agro 120 to 130 45 to 48

Manaksia Ltd. 140 to 160 55 to 58

Porwal Auto components 68 to 75 20 to 25

Precision Pipes & Profiles 140 to 150 45 to 50

Market may see volatile movements

The market may head higher following a solid intra-day recovery yesterday, 12 December 2007. The 30-share BSE Sensex rose 84.98 points or 0.42% to 20,375.87 after loosing 245.47 points in early trade yesterday. The broader S&P CNX Nifty rose 62.05 points or 1.02% at 6,159.30. Both the indices settled at record highs

However it may see spells of volatility. Off late, markets across the globe have been inflicted with hyper volatility, swinging sharply either ways reacting on various developments.

Asian markets were trading lower today, 13 December 2007. Japan's Nikkei (down 1.18% at 15,744.12), Hong Kong's Hang Seng (down 0.57% at 28,357.08), Taiwan's Taiwan Weighted (down 0.89% at 8,415.31), Straits Times (down 0.25% at 3,540.47) edged lower. However, South Korea's Seoul Composite was up 0.19% at 1,931.09.

US markets started the day sharply higher yesterday, 12 December 2007 fueled by news of Fed's plans to boost liquidity but eventually lost steam as negative developments out of the financial sector weighed on the broader market. The Dow Jones industrial average gained 41.13 points, or 0.31%, to 13,473.90. The Standard & Poor's 500 index rose 8.94 points, or 0.61%, to 1,486.59. The Nasdaq Composite index advanced 18.79 points, or 0.71%, to 2,671.14.

Back home, the Index of Industrial Production (IIP) jumped 11.8% in October 2007 from 4.5% in October 2006. IIP stood at 9.7% in April-October 2007 compared with 10.1% in April-October 2006. Industrial output data for September 2007 was revised upwards to 6.8% from 6.4%. The government released the IIP data early afternoon yesterday, 12 December 2007.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 385.20 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 115.83 crore on Wednesday, 12 December 2007.

FIIs were net sellers to the tune of Rs 322.46 crore in the futures & options segment on Wednesday, 12 December 2007. They were net buyers of index futures to the tune of Rs 202.25 crore and bought index options worth Rs 91.29 crore. They were net sellers of stock futures to the tune of Rs 617.53 crore and bought stock options worth Rs 1.51 crore.

Oil prices eased below $94 a barrel on Thursday, 13 December 2007 taking a breather on a drawdown in U.S. crude stocks and a move by major central banks to ease tight credit conditions. U.S. light, sweet crude futures fell 44 cents to $93.95 a barrel. London Brent crude fell 52 cents to $93.50 a barrel.

Daily Technicals, Futures - Dec 13 2007

Daily Call - Dec 13 2007

Morning Call

Market Grape Wine :

In House :

Nifty at a supp of 6043 with resis at 6210 and 6290

Intr Day: Buy Neyvellilignite above 265 with a TGT of 280 and a SL of 259

Buy REL above 1975 with a TGT of 2030 and a SL of 1958

F&O: Buy airdeccan above 278 with a TGT of 294 and a SL of 271

Buy Peninsulaland above 157 with a TGT of 167 and a SL of 151

Out House :

Markets at a support of 19991 & 20012 levels with resistance at 20454 & 20552 levels .

Buy : RIL & REL

Buy : RCOM bullet

Buy : JpAsso & Jphydro

Buy : EssarOil

Buy : Lupin & PrajInd

Buy : IBUllsreal

Buy : Neyvelli & RNRL

Buy : Kotak & SBIN

Buy : IOlBroad

Dark Horse : JpAsso , IBullReal , RComm , Praj , RIL & SBIN

Pre Market Watch

The Market is likely to have positive opening, as the US market closed in green. The market closed yesterday at all time high after struggling a lot at the initial stage. Though the market lost the ground at the initial stage but manages to recover all its losses as a result of heavy buying at lower levels. On Wednesday, the BSE Sensex closed higher by 84.98 points at 20,375.87 and NSE Nifty closed up by 62.05 points at 6,159.30. We expect the market to remain range bound during the trading session.

On Wednesday, the US market closed in green. The DJIA closed higher by 41.13 points at 13,473.90. The S&P 500 index increased by 8.94 points to close at 1,486.59 and NASDAQ grew by 18.79 points to close at 2,671.14.

Indian ADRs ended in positive territory. In technology sector, Satyam grew (1.03%) along with Wipro by (0.94%) and Infosys by (0.53%). In banking sector, ICICI bank and HDFC bank advanced by (2.57%) and (1%) respectively. In telecommunication sector, MTNL and VSNL increased by (4.07%) and (2.88%) respectively. Sterlite industries grew by (1.57%).

The major stock markets in Asia are trading weak. Hang Seng is trading lower by 163.98 points at 28,357.08. Japan''s Nikkei is trading down by 188.14 points at 15,744.12. Taiwan Weighted is trading at 8,415.31 fell by 75.53 points. Singapore Strait Times dropped by 8.78 points to trade at 3,540.47.

The FIIs stood as the net buyer on Wednesday both in equity and debt. The gross equity purchased was Rs4, 178.20 Crore and the gross debt purchased was Rs427 Crore while the gross equity sold stood at Rs3, 488.30 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs689.90 Crore and net debt was Rs427 Crore.

Today, Nifty has support at 6,053 and resistance at 6,232 and BSE Sensex has support at 20,118 and resistance at 20,489.

Morning Notes - Dec 13 2007

India IIP Numbers

Gold gains but silver slips

Gold prices gain marginally as Central Banks speak about injecting liquidity

Gold prices closed marginally higher today after Federal Reserve along with other Central banks sent the message that it will inject more liquidity in the system to ease the credit related problems in the economy. The same boosted gold’s appeal against inflation. Dollar traded mixed today. But silver prices dropped today. Gold generally moves in the opposite direction of the U.S. currency.

Comex Gold for February delivery rose $1.7 (0.2%) to close at $818.8 an ounce on the New York Mercantile Exchange today after hitting an intra day high of $822/ounce. Last week, prices rose by more than 1.4%. On, 7 November, prices had touched $848/ounce. It was the highest price after a record $873 on 21 January, 1980.

Comex Silver futures for March delivery dropped 4 cents (0.3%) at $14.825 an ounce. Prices touched 26 year high on 7 November, after reaching $16.275. The metal has climbed 15% this year.

Gold has traditionally been used as a safe-haven asset against rising inflation. 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. Rising crude increases inflationary pressures and vice versa. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

The Federal Reserve said it would inject cash into money markets through some term-auction facilities. The Fed, along with the Bank of England, the European Central Bank, the Swiss National Bank and the Bank of Canada, will provide cash to the money market to get through in the coming months.

Yesterday, Federal Reserve lowered the federal funds rate by a quarter-point to 4.25%. The Fed also lowered its discount rate, the interest it charges on direct loans it makes to banks, by a quarter-point to 4.75%.

In the currency market today, the dollar was mixed slipping against the euro and pound but jumping against the yen, in line with growing risk appetite. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, edged down 0.1% at 76.150.

In the energy market, oil prices soared by more than $4 today and ended above $94/barrel.

Gold had climbed 28% this year till date as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Dollar is still 11% down against the euro this year.

In 2006, silver had jumped 46% while gold gained 23%.

Dollar had been witnessing a free fall since Federal Reserve cut interest rates in September. Before yesterday, Federal Reserve had cut the fed funds rate by a quarter-point to 4.50% on 31 October, 2007. Prior to that, Federal Reserve had cut interest rates by half percentage point on 19 September, 2007.

At the MCX, gold prices for February delivery closed at Rs 10,376 per 10 grams. The closing price is Rs 14 (0.135%) higher as against previous closing price. Prices rose to a high of Rs 10,422 per 10 grams and fell to a low of Rs 10,250 per 10 grams during the day’s trading.

At the MCX, silver prices for March delivery closed Rs 71 (0.4%) lower at Rs 19,170/Kg. Prices opened at Rs 19,435/kg and fell to a low of Rs 19,170/Kg during the day’s trading.

Crude prices shoot up

Crude price gain more than $4 registering the biggest single day increase since January, 2007

Crude prices soared by more than $4/barrl today after crude inventories drooped for the fourth straight week. Plans by Central banks to inject more liquidity across financial markets worldwide also imparted a feeling that economy would pick up thereby raising demand for oil and this also led to increasing crude price.

For the day ending Wednesday, 12 December, 2007, crude-oil futures for light sweet crude for January delivery closed at $94.39/barrel (higher by $4.37/barrel or 4.9%) on the New York Mercantile Exchange. It was the highest increase in price since January of this year. Prices reached a high of $99.2 on 21 November. Prices are up 47% from a year ago.

As per the weekly inventory report disclosed by the EIA, U.S. crude inventories dropped for a fourth week in the week ending 7 December, down 700,000 barrels. At 304.5 million barrels, U.S. crude inventories were at their lowest since March, 2005, but are still in the upper half of the average range for this time of year. U.S. refineries operated at 88.8% of their operable capacity last week, down from the previous week's 89.4%.

EIA also reported U.S. gasoline supplies rose by 1.6 million barrels to 202.2 million barrels while distillate stocks, which include heating oil and diesel, decreased by 800,000 barrels to 131.5 million barrels in the week under review.

Brent crude oil for January settlement rose $4.03 (4.5%) to $94.02 on the London-based ICE Futures Europe exchange.

All fuel products rise anticipating good demand from economic growth

Natural gas futures in New York rose as crude oil advanced on speculation that a decision by central banks to increase cash supplies will boost economic growth and spur energy demand. Natural gas for January delivery rose 32.3 cents (4.6%) to settle at $7.408 per million British thermal units.

Against this backdrop, January reformulated gasoline rose 12.14 cents to $2.4128 a gallon and January heating oil gained 12.02 cents to $2.6432 a gallon.

Members of the Organization of Petroleum Exporting Countries left production targets unchanged at the 5 December meeting in Abu Dhabi. The group, which produces 40% of the world's oil, will review output at a Feb. 1 meeting in Vienna.

As per EIA, global oil markets will likely remain tight through 2008 and monthly average oil prices are expected to near $85 per barrel over the next year. World oil consumption in 2008 is projected to rise by 1.4 million barrels.

At the MCX, crude oil for December delivery closed at Rs 3666/barrel, higher by Rs 137 (3.7%) against previous day’s close. Natural gas closed at Rs 291.2/mmtbu as against previous close of Rs 278.8/mmtbu, higher by Rs 12.4/ mmtbu.

Daily Trading Calls

Nifty (6159) Supp 6101 Res 6248

Buy GMR Infra (243) SL 238 Target 251, 254

Buy Hindalco (206) SL 202 Target 214, 216

Buy BILT (185) SL 181
Target 192, 195

Buy L&T (4284) SL 4265
Target 4330, 4340

Sell Satyam (431) SL 436
Target 423, 420

Ignorance is bliss!

We want the facts to fit the preconceptions. When they don't,
it is easier to ignore the facts than to change the preconceptions.”

So what if global markets were in doldrums. The local bulls ignored the negative cues following the smaller 25 bps cut in interest rates by the Fed. The stronger than expected industrial production data for October may have helped prop up the mood in the local market. Fact of the matter is though the IIP numbers were much better than in the previous two months, the sharp improvement could be due to a low base effect and good festive demand. November data will more or less affirm whether the Indian industry can sustain double-digit growth rate for the rest of the fiscal year.

Investors will await advance tax figures expected in the next few days. Then of course the third quarter results in January. A piece of data which may not enthuse the bulls is that FIIs were sellers yesterday even as the Sensex and the Nifty rose by 1% each. Local funds continued to lend support as they were once again net buyers yesterday.

Traded volume was much better yesterday and the market breadth too was positive. The F&O data indicates continued buying momentum. Hence, the near-term outlook is positive as the bulls are likely to extend their hold on the markets. We expect a higher opening, though the fall in Asian markets could temper the euphoria. Lots of stock centric action is expected, with small- and mid-cap shares expected to remain in the limelight.

Maars Software is likely to set up a JV for infrastructure development. It is also likely to foray into media entertainment and film distribution. The company's Board is to meet on Dec 19. Shares of real estate developer Kolte Patil will list on the bourses today. Expect a decent debut for the Pune-based company.

L&T is likely to be in action amid news that is setting up a JV with Technip. Also, the Government is considering extending the tax subsidies for shipyards by another 10 years. Glenmark will be another stock that will a lot of activity. The company is reportedly close to signing a US$100-150mn deal for its experimental drug Oglemilast for the European market. It is also among the eight generic drug makers in race to tap the US market for AstraZeneca’s cholesterol-reducing tablet, Crestor. Aurobindo Pharma and Sun Pharma are among the eight companies. IFCI is expected to gain amid reports that the Government has decided not to convert its debt held in IFCI to equity. Tile manufacturers like Nitco Tiles, Kajaria and Euro may attract some attention amid reports that the companies are augmenting capacities to meet rising demand. The companies have also raised money to fund the expansion. Morepen Labs could extend its gains as a financial daily reports that the company may have sealed a settlement with its lenders.

US stocks erased early gains to end marginally higher on Wednesday amid continued anxiety over the ongoing credit crisis. Technology and energy shares led the gains after the Federal Reserve and four other central banks added cash to the financial system in the biggest concerted liquidity injection since the 2001 terrorist attacks.

Exxon Mobil, Cisco Systems and AT&T led the advance and an index of stock market volatility fell the most in a week. Gains were limited as Wachovia and Bank of America said credit-losses will widen.

The Standard & Poor's 500 Index added 9 points, or 0.6%, to 1,486.6. The Dow Jones Industrial Average increased 41 points, or 0.3%, to 13,473.9. The Nasdaq Composite Index climbed 19 points, or 0.7% , to 2,671.14.

Market breadth was positive. About eight stocks rose for every five that fell on the New York Stock Exchange.

The market's late decline was a big break from earlier in the day, when the Dow opened strong and was up 271 points early on. Elsewhere, the dollar fell against the euro and rose against the yen. Treasury prices fell.

US light crude oil for January delivery soared $4.37 to settle at $94.39 per barrel on the New York Mercantile Exchange after the government reported a surprise decline in crude oil and heating fuel supplies.

In economic news, the US trade deficit grew in October compared to the previous month, according to the government's latest reading that showed the gap between imports and exports was slightly larger than Wall Street expectations.

European shares rose. Britain's FTSE 100 closed up 0.4% at 6,559.80, while the German DAX 30 jumped 0.8% to 8,076.12 and the French CAC-40 advanced 0.3% to 5,743.32.

Brazilian stocks finished higher while Argentine stocks ended down. Brazil's Bovespa rose 0.4% to 64,741. Argentina's Merval reversed earlier gains to close down 0.2% at 2,226.12. Chile's IPSA fell 2.4% to 3,090.63. Mexican markets were closed for a holiday.

Asian stocks fell, led by Mitsubishi UFJ Financial Group on concern that a plan by central banks to inject cash into the global financial system will fail to stem credit-market losses.

The MSCI Asia Pacific Index fell 0.5% to 162.32 as of 10:16 a.m. in Tokyo, adding to a 1.3% slide yesterday. The Nikkei 225 Stock Average declined 1.2% to 15,738.12.

Bulls look to carry momentum!

Volatile session ended with smart gains as weak cues from the International markets and lower than expected rate cut by the Federal Reserve dragged the Indian bourses at open. However, after opening with a negative gap, bulls staged a strong bounce back recovering almost all its early losses on back of gains in the index heavyweights like HDFC, Rcom and Bharti Airtel.

Benchmark Sensex ended at a new all time closing high of 20,375 adding 84 points and Nifty index closed at 6,159 adding 62 points.

Classic Diamond slipped 3.5% to Rs467. The board of the directors of the company approved fund raising overseas. The scrip touched an intra-day high of Rs490 and a low of Rs467 and recorded volumes of over 26,000 shares on NSE.

Mercator Lines was down 1% to Rs132. Reports stated that the company raised about US$142.5mn from its listing at the Singapore stock exchange. The scrip touched an intra-day high of Rs138 and a low of Rs130 and recorded volumes of over 7,00,000 shares on NSE.

Reliance Energy edged lower by 0.8% to Rs1933. The company announced that it won 1,200 MW EPC contract from Damodar Valley. The contract was worth Rs37.25bn. The scrip touched an intra-day high of Rs1965 and a low of Rs1902 and recorded volumes of over 25,00,000 shares on NSE.

Edelweiss Capital got listed at Rs1443 with a premium of 75% as expected by the players. The scrip ended at Rs1510 up 83%.

The company is a diversified financial service provider in India, mainly in two segments i.e. agency and capital. Services range from investment banking, institutional equities, asset management and investment advisory, private client broking, wealth management to insurance broking and wholesale financing services catering to its corporate, institutional and High Networth Individual (HNI) clients.

The scrip touched an intra-day high of Rs1608 and a low of Rs1443 and recorded volumes of over 66,00,000 shares on NSE.

Renaissance Jewellery an Indian jewelry producer and exporter, surged as much as 26% on listing on BSE against an issue price of Rs150. The scrip cooled off and ended with 10% gains to close at Rs164.

The company raised Rs798mn selling shares with warrants in an IPO. The jeweler received demand for 23.6 times the shares on offer at the close of the sale. The scrip touched an intra-day high of Rs200 and a low of Rs163 and recorded volumes of over 51,00,000 shares on NSE.

Punj Lloyd surged by over 7% to Rs557 after the company announced that it had won Rs5.9bn contract from IOC. The scrip touched an intra-day high of Rs560 and a low of Rs510 and recorded volumes of over 52,00,000 shares on NSE.

Jindal Drilling surged by over 3% to Rs1329 after reports stated that the company planned to divest 10% stake to fund expansion plans. The scrip touched an intra-day high of Rs1387 and a low of Rs1280 and recorded volumes of over 26,000 shares on NSE.

Geojit Financial was frozen at 10% upper circuit to Rs69.85 after following reports that the company would enter in 50-50 Joint Venture with BNP Paribas for institutional desk. The scrip touched an intra-day high of Rs69.85 and a low of Rs62.2 and recorded volumes of over 18,00,000 shares on NSE.

What the FIIs are doing

FIIs were net sellers of Rs3.85bn (provisional) in the cash segment on Wednesday while the local institutions pumped in Rs1.16bn. In the F&O segment, foreign funds were net buyers of Rs3.22bn on the same day.

On Tuesday, FIIs pumped in Rs6.9bn in the cash segment. Mutual Funds were net buyers of Rs3.08bn.

Stocks in News:

L&T is floating a JV with Technip a French company to expand its play in the oil & gas exploration. (ET)

L&T is set to invest Rs10bn to set up a SEZ in Hazira to be focused on engineering. (Mint)

Suzlon Energy plans to set up an integrated steel project in Karnataka. (BS)

SBI has cut the peak term deposit rate by 25 basis points to 8.5%. (BS)

ONGC has received a green signal for construction of a 20-inch diameter pipeline in the Uran-Trombay sector. (FE)

RIL to invest US$24bn in Gulf projects. (DNA)

Power Grid Corp has decided not to bid for the multi-billion-dollar license to run the Philippines’ National Transmission Corp. (BS)

Aurobindo, Glenmark and Sun Pharma are among the eight generic drug makers in race to tap the US market for AstraZeneca’s cholesterol-reducing tablet, Crestor. (BS)

Ashok Leyland has entered the multi-axle vehicle segment with the launch of its 3121 H (8*2) truck. (BS)

TVS Motor will launch a new Star Sport motorcycle in early January; it will be priced at Rs33,000. (DNA)

TCS is in talks for 12 large contracts. (BS)

Gateway Distriparks may buy logistics firms. (BS)

M&M plans to sell Scorpio in the US and has got firm orders for 45,000 units for the first year. (BS)

Daimler Trucks and Hero Group are reportedly planning a joint venture for CVs in India. (BS)

Jet Airways to have 56 flights from four destinations to cater to the Gulf market. (BS)

GMR Infrastructure raises US$1bn through QIP issue to fund its Istanbul Airport project. (ET)

Glenmark is close to signing a US$100-150mn deal for its experimental drug Oglemilast for the European market. (ET)

Sanofi Aventis and Abbott Labs have jointly filed a lawsuit against Glenmark to prevent it from selling its generic version of hypertension drug Tarka in US. (ET)

Videocon Industries is putting up a fresh bid for acquiring Daewoo. (ET)

Tata Power, Reliance Energy and GMR Infra have submitted non-binding bids for Tuas Power of Singapore. (ET)

The Government has decided not to convert its debt held in IFCI to equity. (ET)

Rights issue of SBI is likely to hit the markets in Q4 FY08. (ET)

Nitco Tiles has raised Rs1.7bn through issue of shares to leading foreign and domestic institutional investors. (ET)

SAIL is looking at taking over Steel Complex owned by the Kerela Government. (BL)

ONGC Videsh is hopeful of receiving an offer from Iran for a stake in Yadavaran field. (BL)

The Government might cut corporate tax rate to 26% with eliminations of some exemptions offered currently. (ET)

The shipping ministry has requested the Government to extend the 30% subsidy to Indian ship builders for another 10 years. (ET)

Companies would be able to raise deposits only from existing shareholders or will have to set up a NBFC to raise from general public. (ET)

India Inc has raised US$3.6bn overseas despite regulatory curbs on offshore borrowing. (ET)

The Government has planned more than a four-fold increase in coal production from captive blocks to 120mn tons per year by 2012. (BS)

The Cabinet is likely to announce across the board 2-3% increase in DEPB rates. (DNA).

FIIs in buying mode

Inflow of Rs 689.90 crore on 11 December 2007.

Foreign institutional investors (FIIs) bought shares worth net Rs 689.90 crore on Tuesday, 11 December 2007, compared to their buying of Rs 300.60 crore on Monday, 10 December 2007.

FIIs inflow of Rs 689.90 crore on 10 December 2007 was a result of gross purchases of Rs 4,178.20 crore and gross sales Rs 3,488.30 crore. The 30-share BSE Sensex jumped 360.21 points or 1.81% to 20,290.89, a record closing high on that day.

FII inflow in December 2007 totaled Rs 4,513.70 crore (till 11 December 2007). FII inflow in calendar year 2007 totaled Rs 70,421 crore (till 11 December 2007).

There are a total of 1,191 FIIs registered with the Securities & Exchange Board of India (Sebi).

Nifty December futures at premium

Turnover in F&O segment rises

Nifty December 2007 futures were at 6177, at a premium of 17.70 points as compared to the spot closing of 6159.30.

The NSE's futures & options (F&O) segment turnover was Rs 71,385.36 crore, which was higher than Rs 59,421.97 crore on Tuesday, 11 December 2007.

Reliance Natural Resources December 2007 futures were at premium, at 185, compared to the spot closing of 183.30.

Essar Oil December 2007 futures were at premium, at 312.20, compared to the spot closing of 309.85.

Punj Lloyd December 2007 futures were at premium, at 564.45, compared to the spot closing of 557.10.

In the cash market, the S&P CNX Nifty gained 62.05 points or 1.02% at 6159.30. Nifty hits an all time high of 6175.65.

Ashis Behera Daily Picks - Dec 13 2007

BUY

Pyramid Saimira Theaters @ 370 TARGET 412

HEG @ 440 Levels TARGET 465

RCOM @ 760 Levels TARGET 790

Punj LLoyd

Sadbhav Engineering, BPCL, HPCL, GAIL, Economy, Banking

Biocon

BGR Energy Systems Allotment Status

BGR Energy Systems Allotment status can be checked at Intime Spectrum (in 2 weeks)

Transformers and Rectifiers Allotment Status

Transformers and Rectifiers Allotment status can be checked at Intime Spectrum in 2 weeks

Transformers and Rectifiers Subscription/Allotment

Qualified Institutional Buyers (QIBs) - 110.5296 times

Non Institutional Investors - 121.6963 times

Retail Individual Investors (RIIs) - 58.6145 times

OVERALL - 91.31 times

BGR Energy Systems Subscription/Allotment

Qualified Institutional Buyers (QIBs) - 161.6744 times

Non Institutional Investors - 153.0816 times

Retail Individual Investors (RIIs) - 46.8934 times

OVERALL - 119.54 times

Daily Technical Analysis

Nifty — The index opened on a negative note yesterday after which it exhibited strength throughout the day’s trading session. It ended the day with gains of 52 points.

Channel: 15-minute chart — The index is trading positive in an upward sloping channel . Support is seen at the lower end of the channel and resistance around the upper end of the channel. The index has support around 6,080 levels, lower support is around 6,012-5,983 levels. Resistance at the upper end of the channel is around 6,200 levels.

Conclusion — Stay focused on the upside with intra-day support around 6,080
levels

GMR raises $1bn; sells stake to Soros, others

GMR Infrastructure has raised $1 billion by divesting 9% equity through a qualified institution placement (QIP) at Rs 240 a share that values the group at a whopping Rs 45,000 crore.

Billionaire investor George Soros, hedge fund Eton Park Capital Management and Deutsche Asset Management, apart from a clutch of other overseas institutions and Indian banks like SBI and Canara Bank, have picked up the equity.

In the process, GMR Infra also set a record for the biggest such exercise so far by an Indian company, beating the previous high of $520 million by IDFC in last July. “While this clearly proves that the India’s infrastructure sector is hot, it also goes to show that GMR has emerged as the reference stock,” said an analyst.

The fresh capital raised by GMR is also representative of the soaring ambitions of the Indian corporate sector that is looking at investment opportunities across segments. The proceeds, which will go into the group’s plans for a new SEZ at Hosur in Tamil Nadu, the Sabiha Gokcen airport in Istanbul and acquisition of power and coal mining assets, will enable GMR to raise a further $3 billion in debt to take up new projects, Madhu Terdal, CFO, corporate strategic finance, GMR Group, told DNA Money.

“The funds raised through the QIP will be enough to finance our projects over the next 2-3 years,” Terdal added.

The Bangalore-based group has set itself an ambition of emerging a $25 billion conglomerate with interests across verticals in the infrastructure in the next two-three years.

While work on the multi-product SEZ at Hosur spread over 3300 acres will begin soon and will call for an investment of Rs 10,000 crore over the next 4-5 years, the group has identified three coal mines in Indonesia and South Africa for acquisition.

At the same time after the Delhi, Hyderabad and the Istanbul airports, GMR is also aggressively vying for various new airport ventures that are slated to come up for bidding.

While it is in the running for the Amristar and Udaipur airport projects, GMR will also bid for the Navi Mumbai project as and when it comes up, Terdal said.

The group is also reportedly in the running for several power projects along with Macquarie Group of Australia and Kuwait’s sovereign wealth fund for three power companies being sold by the Singapore government.

Clearly, the group, which has emerged an aggressive player in the sector has a huge need for funds in the coming days. The company had launched the offering on December 5, 2007 after the close of the markets in India and was priced on December 10, 2007.

Via DBA

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