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Wednesday, January 30, 2008
NSE Bulk Deal Watch - Jan 30 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
30-JAN-2008,GOLDTECH,Goldstone Tech Ltd.,Y V PRASAD,BUY,100000,169.95,-
30-JAN-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,387731,244.41,-
30-JAN-2008,SRF,SRF Ltd.,SRF POLYMERS INVESTMENTS LTD,BUY,600000,117.04,-
BSE Bulk Deals to Watch - Jan 30 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
30/1/2008 590049 APOLLO SINDH RED PHOENIX CONSULTANCY PVT LTD B 38864 473.24
30/1/2008 500160 GTL LIMITED BENNET COLEMAN AND CO LTD B 613000 261.00
30/1/2008 501209 MAST MEDI SY BAKLIWAL FINANCIAL SERVICES INDIA PVT LTD B 25000 63.10
30/1/2008 503776 MODIPON LTD K K MODI INVESTMENTS AND FINANCIAL SERVICES PRIVATE LIMITED B 152375 80.00
30/1/2008 508184 PARRY AGRO I KOTAK SECURITIES B 52520 1850.00
30/1/2008 508184 PARRY AGRO I SEEMA GOEL S 36700 1850.00
30/1/2008 530047 RAI SH REK M C S BUILDWELL PVT LTD B 39875 68.20
30/1/2008 530047 RAI SH REK M LOVIN TRADING CO P LTD S 40000 68.20
30/1/2008 532884 REFEX REFRIG MAXIM FINANCIAL SERVICES PVT LTD S 132000 133.48
30/1/2008 532793 SHREE ASHTA MAVI INVESTMENT FUND LTD B 289586 305.00
30/1/2008 532793 SHREE ASHTA ACCURATE MERCANTILE PVT LTD S 251363 305.04
30/1/2008 531499 SYBLY INDUSR MILLENNIUM INOVATIONS PVT LTD B 30653 9.87
30/1/2008 531499 SYBLY INDUSR HANS CAPITAL AND LEASING PVT LTD S 35000 9.17
30/1/2008 500427 UNIFLEX CABE PRISM IMPEX PVT LTD B 90000 42.00
30/1/2008 531574 VAS INFRA JAGDISHPRASAD PODDAR B 100000 83.00
30/1/2008 531574 VAS INFRA SANJAY JAGDISH PODDAR S 100000 83.00
29/1/2008 517973 DMC INTER CENTENARY SOFTWARE PRIVATE LIMITED B 28303 24.07
29/1/2008 531750 ENCORE SOFT CLIMATE PACK TECH PVT LTD S 55481 23.90
29/1/2008 531025 INCA FINLEAS MAHARASHTRA OVERSEAS LIMITED B 20000 138.82
28/1/2008 523736 DHUNSE TEA I VINAYAK DEALER P. LTD. B 50000 136.25
28/1/2008 516078 JUMBO BAG LT MILI PARESH GADA S 40000 27.20
28/1/2008 590048 TYCHE PERIPH KETAN J. SHAH S 50000 90.98
25/1/2008 532870 ANKIT METAL D.B.SECURITIES PVT LTD S 179568 84.87
25/1/2008 590049 APOLLO SINDH SAROJINI K. TANDON S 28567 534.10
25/1/2008 590059 BIHAR TUBES SAROJ RANI GUPTA B 65000 130.11
25/1/2008 590059 BIHAR TUBES SAROJ RANI GUPTA B 65000 130.11
25/1/2008 531127 ENRICH INDUT SPAN STOCK BROKING S 54468 3.36
23/1/2008 531025 INCA FINLEAS NANUBEN CHAMPSHI SHAH S 17500 141.00
Post Market Commentary - Jan 30 2008
The Indian Market closed with heavy losses for the third straight trading session. Though the market opened higher backed by favoring cues from the global market but was unable to sustain all its gains at higher levels and fell soon after the start of the session. The investors took calculated steps in booking their further positions, as the Federal Open Market Committee will be announcing its interest rates today as well as due to expiry of January derivatives contracts tomorrow. The Mid Caps and Small Caps also joined the rally of the benchmark indices as they also faced heavy profit booking. The BSE Sensex closed lower by 333.20 points at 17,758.64 while NSE Nifty fell by 113.2 points to close at 5,167.60. The BSE Mid Cap and Small Cap indices also closed lower by 192.18 points and 230.81 points at 7,829.06 and 10,146.86 respectively.
BSE Metal index dropped by 134.42 points to close at 15,406.33. Scrips that fell are Ispat Industries (6.57%), Jindal Steel (4.78%), Jindal Stainless (4.08%), NALCO (2.23%).
BSE Oil & Gas index slipped by 497.21 points to close at 10,684.56. Losers are RNRL (6.66%), BPCL (5.96%), Essar Oil (5.64%), ONGC (4.94%), IOCL (4.11%).
BSE Auto index closed down by 111.28 points at 4,812.46 as TVS Motors (5.03%), Bajaj Auto (4.62%), Tata Motors (2.74%), Maruti Suzuki (1.70%) closed in red.
BSE Capital Goods index closed lower by 336.15 points at 16,625.91. Losers are Elecon Eng (11.36%), Lakshmi Machine (6.96%), Jyoti Structures (5.28%) and ABB (4.31%).
BSE Bankex index fell by 220.56 points to close at 10,899.86. Scrips that fell are CentBOP (4.44%), Kotak bank (4.38%), IOB (4.20%), BOB (4.03%), BOI (3.56%).
BSE Realty index slipped by 252.88 points to close at 10,148.19. Scrips that lost are Mahindra Life (6.77%), Penland (6.19%), Ansal Infra (5.51%), Omaxe (4.72%).
BSE Power index dropped by 113.49 points to close at 3,822.67 as Suzlon Energy (6.40%), Reliance Energy (5.44%), Power Grid (4.97%), NTPC (4.70%) closed lower.
Market Close : Jolt ahead of Fed meet
Although US markets ended in green with the bet that another rate cut is on cards?Indian indices had a disappointing day which opened weak on inconclusive note. Markets continued with selling pressure through the day and finally ended with a deep cut. Tomorrow being the FnO expiry day, the markets were clearly in a cautions mood. Volumes have dried up and markets were more news driven rather than fundamentals. With the US recession fear on mind, companies with good results are also sidelined. Near term the focus will shift to the Budget and rate cut issues. Small and mid caps counter continued to be fragile. Oil & gas and Power were among major losers. Asian indices ended in red, while Europe trading cautiously weak.
Sensex closed down by 333 points at 17758.64. Weighing on the Sensex were losses in Rel Energy (1992.3,-5 percent), HLL (196.6,-5 percent), ONGC (968.5,-5 percent), RCVL (612.35,-5 percent) and NTPC (201.7,-5 percent). Losses were restricted by gains in BHEL (2089.25,+2 percent), HDFC (2894.05,+2 percent), TISCO (723.5,+1 percent), Guj Ambuja (118.3,+1 percent) and ACC (797.35,+1 percent).
The third quarter review of the Annual Monetary Policy for the Year 2007-08 brought in a surprise. RBI left key policy rates unchanged as against a cut which was widely anticipated. There is slower growth witnessed in certain sectors, but by and large the domestic economic fundamentals remain intact believes the RBI The RBI had a hawkish stance on the back of excessive credit growth, overheating of economy and inflation worries. The stance is neutral now. There has been high levels of liquidity with strong FII flows and the excess liquidity was soaked up with high CRRs. We have more insight on this topic in Heard & read section. Do have a look on that.
Avaya came out with disappointing Q1 Dec 2007 numbers. Topline was flat at Rs156 Cr on y-o-y basis. EBIDTA was down by 11% to Rs 12.9 Cr. PAT dropped by 18% to 6.9 Cr. NPM was 100 basis down to 4%. The company has changed its year-end from March to September this year. Since the value is for a period of 18 months. Hence the figures for full year are not comparable. Australian subsidiary of Avaya Global Connect has not contributed to the bottom line although the topline is significant and this surprises us. The company?s management lacks transparency and this hurts a bit to understand more. Seems as the earnings would continue to be in the range of 20-25 for the coming quarters. Valuations are Ok at this price. Keep watching this space and we will update more on this.
Market slips below 18,000 again
Across-the-board selling saw the market slip by 1.84% as the Sensex followed the weak international markets. Despite opening on a positive note at 18,120, the Sensex quickly slipped in the red and the market fell further as the sentiment turned extremely bearish. Europe's largest bank by assets, UBS AG reported record loss of about $14 billion on assets infected by subprime mortgages in the US also dampened the sentiment. The sharp fall in the heavyweights and a correction in oil, consumer durables, and FMCG stocks dragged the index below the 17,700 mark in the afternoon to touch the day's low of 17,684, down 408 points. The market remained nervous thereafter and the Sensex finally closed with losses of 333 points at 17,759, while the Nifty shed 113 points to close at 5,168.
The breadth of the market was weak. Of the 2,787 stocks traded on the BSE, 2,018 stocks declined, 726 stocks advanced and 43 stocks ended unchanged. The sectoral indices were largely weak. The BSE Oil & Gas index lost 4.45%, the BSE Power index declined by 2.88% and the BSE CD shed 2.73% and the rest closed with marginal losses.
Several heavyweights took a sharp tumble on late selling pressure. Among power stocks, Reliance Energy slipped and shed 5.44% at Rs1,992 and NTPC tumbled by 4.70% at Rs202. Among the other major losers HLL slumped by 5.14% at Rs197, ONGC lost 4.94% at Rs969, Reliance Communications slipped by 4.74% at Rs612, Reliance Industries dipped 4.12% at Rs2,470 and Bajaj Auto shed 3.26% at Rs2,301. Select counters, however, ended in the green. BHEL advanced by 1.82% each at Rs2,089, HDFC gained 1.53% at Rs2,894 and Tata Steel added 1.02% at Rs724.
Over 1.58 crore Reliance Natural Resources shares changed hands on the BSE followed by Ispat Industries (1.04 crore shares), Reliance Petroleum (94.05 lakh shares), Essar Oil (94.49 lakh shares) and Himachal Futuristic Communications (63.17 lakh shares).
Valuewise, Reliance Natural Resources registered a turnover of Rs223 crore on the BSE followed by Essar Oil (Rs217 crore), Reliance Energy (Rs178 crore), Reliance Petroleum (Rs155 crore) and Reliance Capital (Rs138 crore).
Market stays nervous ahead of Fed meet, derivatives expiry
The market edged lower for third straight day in choppy trade tracking weak European and Asian markets. Investors refrained from making fresh commitments ahead of the crucial Federal Open Market Committee (FOMC) meeting on interest rates today, 30 January 2008 and expiry of January 2008 derivative contracts scheduled tomorrow, 31 January 2008.
Reliance Industries, Hindustan Unilever, DLF and Oil & Natural Gas Corporation led the fall. The market breadth was weak. 22 shares from 30-member Sensex pack declined.
The 30-share BSE Sensex slipped 344.98 points or 1.91% at 17746.96. It opened with an upward gap of 28.28 points at 18,120.22 and rose further to touch a high of 18,129.18 in early trade. At the day's high of 18,129.18, the Sensex rose 37.24 points. The barometer index plunged 408.43 points at the day’s low of 17,683.51 hit in mid-afternoon trade.
The broader based S&P CNX Nifty was down 113.20 points or 2.14% at 5167.60. Nifty January 2008 futures were at 5145, a discount of 22.60 points discount over spot closing.
The Union Cabinet today approved easing caps on foreign investment in sectors such as civil aviation, petroleum and natural gas and commodity exchanges, Information and Broadcasting Minister Priyaranjan Dasmunsi said.
The total turnover on BSE was Rs 4042 crore as compared to Rs 4,793.08 crore yesterday, 30 January 2008
Turnover on NSE’s futures & options rose to Rs 57973.91 crore as compared to Rs 56019.95 crore yesterday, 30 January 2008
The market breadth was weak on BSE with 2007 shares declining as compared to 744 that advanced. 39 shares remained unchanged.
The BSE Mid-Cap index was down 2.40% to 7,829.06 while the BSE Small-Cap index was down 2.22% to 10,146.86. Both these indices underperformed the Sensex.
All the sectoral indices on BSE declined. BSE Metal index (down 0.86% to 15,406.33), BSE FMCG index (down 1.76% at 2,166.94), BSE Health Care index (down 0.38% at 3,654.45), BSE IT index (down 0.60% at 3,708.32), BSE TecK index (down 1.30% to 3,277.58), outperformed the Sensex.
BSE Power index (down 2.88% at 3,822.67), BSE Bankex (down 1.98% at 10,899.86), BSE Capital Goods index (down 1.98% at 16,625.91), BSE Realty index (down 2.43% at 10,148.19), BSE PSU index (down 2.52% to 8,247.62), BSE Consumer Durables index (down 2.73% to 5,134.32), BSE Oil & Gas index (down 4.45% at 10,684.56), BSE Auto (down 2.26% at 4,812.46), underperfomed the Sensex
India’s largest private sector power utility company in terms of sales, Reliance Energy plunged 5.48% to Rs 1991.50 on 8.80 lakh shares. It was the top loser from Sensex pack
Shares from auto pack came under selling pressure. India’s second largest bike manufacturer in terms of sales, Bajaj Auto slipped 3.26% to Rs 2301, off day’s low of Rs 2211. Bajaj Auto posted 5.32% fall in net profit to Rs 326.81 crore in Q3 December 2007 over Q3 December 2006.
Other shares from auto pack which declined were Tata Motors (down 3.30% to Rs 692.20), and Maruti Suzuki India (down 1.86% to Rs 841.25).
India’s top tractor maker in terms of sales Mahindra & Mahindra declined 1.52% to Rs 691. It registered 67.6% rise in net profit to Rs 405.15 crore boosted by one-off gain. The company’s sales rose 14.1% to Rs 2,940.15 crore in Q3 December 2007 over Q3 December 2006. The company announced results during market hours today 30 January 2008.
Hindustan Unilever (down 5.19% to Rs 195.50), Reliance Communications (down 4.80% to Rs 612), and Oil & Natural Gas Corporation (down 5.10% to Rs 967), were the other losers from the Sensex pack.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) was down 4.19% to Rs 2467.80. A total of 5.19 lakh shares changed hands on the counter on BSE. The stock had hit a high of Rs 2582 in early trade. As per recent reports RIL plans to foray in engineering, procurement and construction business to clock a turnover of Rs 5,000 crore in first year itself and double it in second year.
India’s largest private sector bank in terms of net profit ICICI Bank slipped 3.05% to Rs 1183.05. The stock moved in a range of Rs 1167.20 and Rs 1225
India’s largest listed real estate developer in terms of land bank DLF slipped 3.31% to Rs 854. The company today posted net profit of Rs 605.84 crore on total income of Rs 1,812.59 crore in Q3 December 2007. The company announced the results during market hours today 30 January 2008
State-run power equipment maker Bharat Heavy Electricals rose 1.36% to Rs 2079.90, and was the top gainer from Sensex pack. The company said on Tuesday, 29 January 008, it will invest Rs 736 crore ($187 million) in upgrading its boiler capacity in southern India by 2009
India’s largest cellular services provider in terms of market capitalisation Bharti Airtel rose 1.20% to Rs 860.50. It posted 36.04% rise in net profit to Rs 1,419.84 crore on 41.46% rise in total income 41.46% to Rs 6,682.57 crore in Q3 December 2007 over Q3 December 2006. The company announced the results during market hours today, 30 January 2008.
National Thermal Power Corporation (NTPC), the country’s largest power generation company in terms of sales, slipped 4.56% to Rs 202. It today announced 15.37% fall in net profit to Rs 1,779.9 crore for Q3 December 2008 over Q3 December 2007.
Tata Steel (up 0.53% to Rs 720), and ACC (up 0.80% to Rs 798), edged higher from the Sensex pack.
India’s largest biggest software services exporter Tata Consultancy Services was down marginally by 0.02% to Rs 863.05. The company said on Wednesday one of its subsidiaries had won a 100 million pounds, or $200 million, outsourcing contract from Sun Life Financial.
Essar Oil was the second most top traded counter on BSE with turnover of Rs 217.55 crore. The stock was down 6.56% to Rs 228.60. On Tuesday, the counter saw high volumes of 1.19 crore shares of which just 5.94% were meant for delivery.
Reliance Natural Resources topped the volume chart clocking total volumes of 1.59 crore shares followed by Ispat Industries (1.05 crore shares), Reliance Petroleum (94.25 lakh shares), Essar Oil (91.50 lakh shares) and Himachal Futuristic Communications (63.40 lakh shares) in that order.
Sun Pharmaceuticals Industries surged 6.80% to Rs 1131 on posting 109.5% rise in net profit to Rs 345.93 crore on 30.90% rise in net sales rose 30.9% to Rs 733.91 crore in Q3 December 2007 over Q3 December 2006. The company announced results during market hours today 30 January 2008.
Asian Paints rose 6.30% to Rs 1171 on reporting 65.3% surge in net profit to Rs 107.69 crore on 29.80% rise in net sales to Rs 916.24 crore in Q3 December 2007 over Q3 December 2006. The results were announced during trading hours on Tuesday, 29 January 2008
Thermax declined 2.96% to Rs 650.20 despite reporting 35.3% rise in net profit to Rs 75.03 crore on 53.70% rise in net sales to Rs 845.43 crore in Q3 December 2007 over Q3 December 2006. The results were announced during trading hours on Tuesday, 29 January 2008
Tata Power Company declined 1.15% to Rs 1297 at 14:18 IST on BSE, on reporting 29.5% fall in net profit to Rs 197.28 crore in Q3 December 2007 over Q3 December 2006. Tata Power Company’s net sales rose 18.2% to Rs 1419.40 crore in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Tuesday, 29 January 2008.
Adani Enterprises fell 2.10% to Rs 881.05 on reporting 226.2% surge in net profit to Rs 120.74 crore on 20.60% rise in net sales rose 20.6% to Rs 3166.42 crore in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Tuesday, 29 January 2008.
Lanco Infratech dropped 10% to Rs 477 despite reporting 91.6% surge in net profit to Rs 38.91 crore on 191% jump in net sales to Rs 382.15 in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Tuesday, 29 January 2008.
Bombay Dyeing & Manufacturing Company slipped 0.30% to Rs 782 despite reporting net loss of Rs 37.01 crore in Q3 December 2007 as compared to net profit of Rs 7.21 crore in Q3 December 2006. Bombay Dyeing & Manufacturing Company’s net sales jumped 173.5% to Rs 291.60 crore in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Tuesday, 29 January 2008.
Bartronics India dropped 3.46% to Rs 236 after the company said it has acquired the assets of US based firms Proximities Inc., in Melbourne, Florida and SRG America Inc. headquartered in Iselin, New Jersey, for a total consideration of $50 million.
Eicher Motors rose 2.46% to Rs 290 after company approved transfer of its commercial vehicle division to a new subsidiary.
Dabur India declined 3.41% to Rs 97.65 despite reporting 22.9% rise in net profit to Rs 88.14 crore on 1.5% rise in net sales to Rs 516.44 crore in Q3 December 007 over Q3 December 2006. The results were announced after trading hours on Tuesday, 29 January 2008.
Reliance Natural Resources was the most active counter on BSE with turnover of Rs 223.30 crore. Essar Oil was the second most top traded counter on BSE with turnover of Rs 217.55 crore. Reliance Energy (Rs 178.30 crore), Reliance Petroleum (Rs 155.25 crore) and Reliance Capital (Rs 138.90 crore) were the other turnover toppers in that order.
Third quarter December 2007 results so far have been decent. A total of 1397 companies reported 35.90% rise in net profit on 21.70% rise in net sales for Q3 December 2007 over Q3 December 2006.
European markets, which opened after Indian market, edged lower. Key benchmark indices in United Kingdom (down 0.58% to 5,851.30), Germany (down 0.69% to 6,845.65) and France (down 1.43% to 4,870.56) declined.
Asian markets were trading weak today, 30 January 2008. Hong Kong's Hang Seng (down 2.63% at 23,653.98), Japan's Nikkei (down 0.99% at 13,345.03), Taiwan's Taiwan Weighted (down 0.43% at 7,543.50), South Korea's Seoul Composite (down 2.98% at 1,589.06) and China’s Shanghai Composite (down 0.90% to 4,417.98) declined.
On Tuesday, 29 January 2008, US markets advanced on expectation that the Federal Reserve will slash interest rates in a meeting scheduled on Wednesday, 30 January 2008. The Dow Jones industrial average gained 96.41 points, or 0.78%, to 12,480.30. The Standard & Poor's 500 index advanced 8.34 points, or 0.62%, to 1,362.30,and the Nasdaq Composite rose 8.15 points, or 0.35%, to 2,358.06.
Back home, the Reserve Bank of India (RBI) kept key rates - repo rate, reverse repo rate, bank rate and cash reserve ratio, unchanged at its quarterly monetary policy review announced yesterday, 29 January 2008
Crude oil climbed to a two-week high above $92 a barrel on Wednesday, 30 January 2008 as investors anticipate that a second US interest rate cut this week will overshadow news of a build in US crude stockpiles. US crude rose 75 cents to $92.39 a barrel. London Brent crude were up 57 cents to $92.57 a barrel.
Volatility remains key factor
The market is likely to exhibit weak trends on the back of a strong intra-day volatile moves. The sentiment is likely to remain sluggish on weak Asian cues. Also the FIIs remaining net sellers of equities in the domestic market may see the investors remain jittery. Among the local indices, the Nifty could test higher levels at 5600 and has a support at 4800. The Sensex on the downside may slip to16000 and may face resistance at 18700.
US indices gained on Tuesday as investors welcomed a strong read on durable-goods orders and some upbeat earnings, ahead of the Federal Reserve policy meeting. While the Dow Jones gained 96 points at 12480, the Nasdaq moved up by eight points to close at 2358 on weakness in tech stocks.
The Indian ADRs had a mixed outing on the US bourses. VSNL tumbled over 5% and wipro, Dr Reddy's, ICICI Bank and MTNL fell 1-2% each. While, Infosys, Satyam, HDFC Bank and Patni computers and Rediff gained around 1-5% each.
Crude oil prices moved up marginally, with the Nymex light crude oil for March delivery moved up by 65 cents at $91.64 a barrel. In the commodity segment, the Comex gold for April series was down by $2 to settle at $930.80 a troy ounce.
Market may remain choppy
The market may see volatile movements, as the Federal Open Market Committee (FOMC) will be announcing its decision regarding interest rates today, 30 January 2008 (after Indian market hours). Volatility is expected to remain high tomorrow, 31 January 2008 also as expiry of January 2008 derivative contracts.
Third quarter December 2007 results so far have been decent. A total of 1289 companies reported 33.20% rise in net profit on 21.10% rise in net sales for Q3 December 2007 over Q3 December 2006.
Asian markets were trading mixed today, 30 January 2008. Hong Kong's Hang Seng (up 0.70% at 24,462.62), Japan's Nikkei (up 0.12% at 13,494.57), Taiwan's Taiwan Weighted (up 0.31% at 7,599.98), advanced. However, Singapore's Straits Times (down 0.71% to 3,028.21), South Korea's Seoul Composite (down 0.99% at 1,621.62) and China’s Shanghai Composite (down 0.54% to 4,433.70) declined.
On Tuesday, 29 January 2008, US markets advanced on expectation that the Federal Reserve will slash interest rates for the second time in a week in a meeting scheduled later during the day. The Fed Fund Futures indicate a near-certainty of a half-point cut.
The Dow Jones industrial average gained 96.41 points, or 0.78%, to 12,480.30. The Standard & Poor's 500 index advanced 8.34 points, or 0.62%, to 1,362.30,and the Nasdaq Composite rose 8.15 points, or 0.35%, to 2,358.06.
Back home, the Reserve Bank of India (RBI) kept key rates - repo rate, reverse repo rate, bank rate and cash reserve ratio, unchanged at its quarterly monetary policy review announced yesterday, 29 January 2008
The 30-share BSE Sensex declined 60.84 points or 0.34% at 18,091.94, on Tuesday 29 January 2008. Nifty rose 6.70 points or 0.13% at 5,280.80 in the day.
As per reports, rollover of Nifty futures from January 2008 series to February 2008 series stood at 53% while marketwide rollover was 40%.
As per provisional data, foreign institutional investors (FIIs) sold shares worth Rs 546.09 crore on Tuesday, 29 January 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 98.82 crore
FIIs were net buyers to the tune of Rs 805.80 crore in the futures & options segment on Tuesday, 29 January 2008. They were net buyers of index futures to the tune of Rs 613.64 crore and bought index options worth Rs 70.71 crore. They were net buyers of stock futures to the tune of Rs 121.47 crore and sold stock options worth Rs 0.03 crore.
Crude oil climbed to a two-week high above $92 a barrel on Wednesday, 30 January 2008 as investors anticipate that a second U.S. interest rate cut this week will overshadow news of a build in U.S. crude stockpiles. US crude rose 75 cents to $92.39 a barrel. London Brent crude were up 57 cents to $92.57 a barrel.
Grey Market - Emaar MGF, Reliance Power, KNR Constructions
Future Capital Holding 765 360 to 380
Reliance Power 450 160 to 170
Emaar MGF 610 to 690 110 to 120
J. Kumar Infraprojects 110 to 120 3 to 5
Cords Cable Ind 125 to 135 10 to 12
KNR Construction 170 to 180 Discount
On Mobile Global 425 to 450 40 to 50
Bang Overseas 200 to 207 32 to 35
Shriram EPC 290 to 330 20 to 22
IRB Infrastructure Developers 185 to 220 50 to 55
Pre Market Watch - Jan 30 2008
The Indian Market is likely to have a positive opening as the cues from the global markets are in favor. On Tuesday, the Indian market closed mixed after a strong rally at the initial stage on the back of favoring global cues. The market takes a u-turn soon after the declaration of the quarterly monetary policy review announced by RBI in which it kept all the key rates- Cash Reserve Ratio, Repo rates, Reverse Repo rates and Bank rates unchanged. But the market was expecting a 25 basis point rate cut by RBI. However, the Mid Caps and Small Caps outperformed the benchmark indices. The BSE Sensex closed lower by 60.84 points at 18,091.94 while NSE Nifty closed up by 6.7 points at 5,280.80. We expect that the market may edge higher during the trading session.
On Tuesday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 96.82 points at 12,480.71. S&P 500 index grew by 8.34 points to close at 1,362.30 and NASDAQ increased by 8.15 points to close at 2,358.06.
Indian ADRS closed in mixed. In technology sector, Patni Computers grew by (5.42%) along with Infosys by (1.26%) and Satyam by (0.24%) while Wipro dropped by (1%). In banking sector, ICICI bank fell by (2.61%). VSNL and MTNL dropped by (5.75%) and (1.86%) respectively.
The major stock markets in Asia are trading firm. Hang Seng is trading up by 170.82 points at 24,462.62. Japan''s Nikkei trading higher by 15.71 points at 13,494.57 and Taiwan Weighted is trading at 7,599.98 up by 23.56 points.
The FIIs on Tuesday stood as net seller both in equity and Debt. The gross equity purchased was Rs2,600.30 Crore and the gross debt purchased was Rs288.10 Crore while the gross equity sold stood at Rs4,113.60 Crore and gross debt sold stood at Rs296.60 Crore. Therefore, the net investment of equity reported was (Rs1,513.40 Crore) and net debt was (Rs8.60 Crore).
Today, Nifty has support at 5,212 and resistance at 5,385 and BSE Sensex has support at 17,827 and resistance at 18,356.
Zee News
We recommend a buy in Zee News at current market price from a short-term perspective. From the charts of the Zee News, we see that the stock has been on a steady long-term uptrend from January 2007 low of Rs 30. However, after marking an all-time high of Rs 92 on January 1, 2008, the stock made a corrective decline to the long-term up trendline. Subsequently, the stock found the support at around Rs 50 and resumed its long-term uptrend. The stock is currently trading well above the 200-day moving average line and is testing resistance at Rs 70. The daily momentum indicator has recovered from the bearish zone and is rising toward the bullish region. The immediate support for the stock is at Rs 60 and the next key support level is at Rs 50. Taking into account the fact that the stock’s long-term uptrend line remains intact, we expect the stock to break the current resistance and rally further to the key resistance level of Rs 78 in the short-term. Short-term investors can buy the stock while keeping the stop-loss at Rs 59 level.
Via Businessline
Morning Call - Jan 30 2008
Market Grape Wine :
In House :
Nifty at a supp of 5225,5139 with strong supp at 5070. A break below 5070 cld take it to 4890 and 4650 with resis at 5400 ,5630 and 5949
Intra Day: Sell REL below 2050 with a TGT of 1980 and a SL of 2073
Sell SESAGOA below 3138 with a TGT of 3070 and a SL of 3161
F&O: Buy Praj above 175 with a TGT of 188 and a SL of 170
Buy HCLTECH above 255 with a SL of 250
Out House :
Markets at a support of 17786 & 18008 levels with resistance at 18381 & 18456 levels .
Buy : RIL
Buy : IBulls & IbullReal
Buy : SBIN & Kotak Bank
Buy : JPASSO & IndiaGlycol
Buy : Adlabs & HEG
Buy : SKumar & Aban
Buy : PrimeSec & Geojit
Dark Horse : Kotak , IOlBroad , Aban , Prime , RIL , Sbin , & REL
FIIs continue selling
Outflow of Rs 1513.30 crore on 28 January 2008
Foreign institutional investors (FIIs) sold shares worth a net Rs 1513.30 crore on Monday, 28 January 2008, compared to their buying of Rs 669 crore on Friday, 25 January 2008.
FII outflow of Rs 1513.30 crore on 28 January 2008 was a result of gross purchases of Rs 2600.30 crore and gross sales Rs 4113.60 crore. The 30-share BSE Sensex declined 208.88 points or 1.14% at 18,152.78 on that day.
FII outflow in January 2008 totaled Rs 12,139.20 crore (till 28 January 2008).
There are a total of 1,276 FIIs registered with the Securities & Exchange Board of India (Se
Long Term Recommendations - Jan 30 2008
ONGC
GAIL
Aditya Birla Nuvo
HDFC Bank
JSW Steel
The recommendations are for long-term purpose and one should hold on to these scrips for at least six months to earn reasonable returns.
Momentum, where art thou?
If your position is everywhere, your momentum is zero.
The momentum that the bulls enjoyed for quite a long time has gone missing. Time and again we remind to get out of stocks where you will find it difficult to exit. The tragedy for some was when the large caps fell, the smaller stocks were frozen at lower circuit. Leveraged players were forced to sell their prime stocks and remain stuck with dud stocks, which still provide no exit. But these are lessons most market participants forget. That’s why history repeats itself.
Back to today’s action, or lack of it, we expect a cautious to higher opening as US shares closed up overnight ahead of the FOMC's announcement on interest rates on Wednesday. But the trend will remain volatile, as very few have the courage and money to take undue risks before the Fed announcement. There are no clear signals from the Asian markets which are trading pretty mixed to flat this morning. We also have an F&O expiry tomorrow.
The results’ season is coming to an end. Investor confidence has been shaken by last week's crash, not by the corporate numbers. But a crash is a crash, no matter what the reasons. Volume is down sharply, both in cash as well as derivative market. IPO subscription has been hit, so are other forms of fund raising plans. Market sentiment has taken a beating and will take time to rebound. On the bright side (if you have cash), the correction also provides good opportunities for medium to long-term investors.
As (we) expected, RBI Governor Dr. Y.V. Reddy has chosen to tread a different path vis-a-vis his US counterpart, Mr. Ben S. Bernanke. The maverick central bank head has resisted pressure from markets and India Inc. by not cutting rates or CRR. He has cited potential threats from inflation and a liquidity overhang as the main reasons behind his move. In doing so, the RBI Governor has also sent out a clear signal to banks to reduce lending as well as deposit rates. Whether or not the banks oblige Mr. Reddy only time will tell. The central bank also believes that the move will not have any adverse effect on growth, which it expects to be 8.5% this year. In a nutshell, the RBI has adopted a 'wait and watch' approach and could lower rates in the next six months depending on local and global compulsions.
Wall Street is betting on another cut from the Fed, in order to give a fillip to the sagging US economy. The Fed announced an emergency rate cut last week, lowering the fed funds rate by 75 bps to 3.5 %, amid mounting fears of a global slowdown. It was the biggest cut since 1984 and helped global stock markets stabilise, along with the Bush government's fiscal stimulus plan. But, Wall Street wants more. Indications are that the FOMC may announce another cut of up to 50 bps. Global markets will sell off yet again if there is no rate cut from the Fed or the size is smaller than expectations.
US stocks ended up for the second session in a row on Tuesday as investors welcomed a strong report on durable-goods orders and some upbeat earnings, on the first day of the FOMC's two-day policy meeting.
Banks and telecom companies led the advance on better-than-expected durable goods orders and speculation that the nation's largest bond insurers will keep their credit ratings.
JPMorgan Chase and Bank of America led financial shares higher after New York's insurance regulator said it hopes to complete a bailout of bond guarantors before they lose their AAA ratings.
Sprint Nextel gained the most in almost four years on a report it may enter a joint venture with wireless Internet company Clearwire Corp.
The S&P 500 index added 8 points, or 0.6%, to 1,362.3. The broader index is still down 7.6% in 2008 on concern that the US economy will contract. The Dow Jones Industrial Average rose 96 points, or 0.8%, to 12,480.3. The Nasdaq Composite rose 8 points, or 0.4%, to 2,358.06.
Market breadth was positive. On the NYSE, winners beat losers by nearly 2 to 1 on volume of 1.56bn shares. On the Nasdaq, advancers topped decliners 4 to 3 on volume of 2.19bn shares.
After the close, Yahoo reported higher earnings that topped estimates on higher revenue that met estimates. The search engine behemoth also said it faces headwinds in 2008, that revenue could miss the high end of analysts' current forecasts and that it will announce layoffs by mid-February. Shares plunged 10% in extended-hours trading.
Earnings are due before the bell on Wednesday from Dow components Altria, Boeing and Merck. Ahead of the Fed decision, the ADP survey of private sector employment in January is due. The fourth-quarter GDP growth report is also on tap before the start of trade. The weekly oil inventory report is due in mid-morning.
Durable goods orders to factories jumped 5.2% in December, the government reported, more than doubling analysts' forecasts. The January consumer confidence index fell less than expected, slipping to 87.9 against forecasts for a reading of 87. The confidence index stood at a revised 90.6 in the previous month.
A separate government report showed the biggest annual drop in home ownership in four decades. And in other housing market news, foreclosures surged 75% in 2007, according to an industry report.
Treasury prices slumped, raising the yield on the 10-year note to 3.67% from 3.58% late on Monday. In currency trading, the dollar inched higher versus the yen and the euro.
US light crude oil for March delivery rose 65 cents to settle at $91.64 a barrel on the New York Mercantile Exchange. COMEX gold for April delivery fell $2 to settle at $930.80 an ounce, after touching an all-time trading high of $933.50.
European shares scored their third rise in six sessions. The pan-European Dow Jones Stoxx 600 index closed with gains of 1.6% to stand at 323.93, behind strong gains for miners and banks.
Of national indexes, the French CAC-40 finished up 1.9% to 4,941.45, while the German DAX 30 ended the day up 1.1% to 6,892.96 and the UK's FTSE 100 advanced 1.7% to 5,885.20.
In the emerging markets, the Bovespa in Brazil rose 1.6% to 59,529 while the IPC index in Mexico gained 1.8% to 28,263. The RTS index in Russia rose 1.6% to 2009 while the ISE National-30 index in Turkey advanced 2.2% to 56,175.
Volatility to continue
After an extremely volatile session, India's benchmark stock index closed marginally in the red. Investors turned cautious following a fairly strong start as the Reserve Bank of India (RBI) kept all policy rates, and the CRR unchanged, citing inflationary and demand side risks. This, despite a firm closing in Asian markets and higher opening in European markets.
Banking shares led the retreat from the top after the RBI left investors disappointed. Real estate shares also took a beating amid concerns that high interest rates will hurt demand for new homes. But, IT and FMCG shares caught the fancy of investors and ended sharply higher.
Banking shares were clearly the biggest drag on the market after the RBI left all policy rates and CRR unchanged. The market was expecting a small reduction in either the repo rate or the CRR, but most experts were of the view that RBI Governor Y.V. Reddy may maintain status quo. The BSE Bankex was down almost 3.5%. ICICI Bank, HDFC Bank and SBI were down by anywhere between 3-4%. Among the other top losers in the banks were Canara Bank, BOI, OBC, Indian Overseas Bank and Federal Bank.
The benchmark BSE Sensex lost 61 points or 0.3% to end at 18,091 after touching a high of 18,491 and a low of 17,927 after opening at 18,346. On the other hand, the NSE Nifty shut shop at 5,280, up 0.1% after being as high as 5,391 and as low as 5,225.
Now that the RBI's policy decision is out of the way, all eyes will be on tomorrow's FOMC announcement. Markets are expecting the Fed to lower rates again after making an emergency cut last week. It remains to be seen as to what the Fed finally delivers and says about the state of the US economy. A lot of stock-centric action will continue based on the type of news - negative or positive. Also, the intra-day volatility will escalate ahead of Thursday’s F&O expiry.
News Snippets:
TCS cuts variable pay linked to company performance by 1.5% per employee. (ET)
Unitech plans to sell 10-50% stake in its telecom operation to a foreign company. (BS)
Ranbaxy, Dr Reddy’s and Lupin are in fray to acquire 53% stake in Romanian pharma company, Antibiotice. (ET)
ONGC and RIL make fresh appeal to Petroleum Ministry for implementation of rig holiday. (FE)
Essar Oil has decided to consolidate its upstream E&P operations with itself. (ET)
LIC offloads 2% stake in VSNL for about Rs3.4bn. (BS)
IOC to enter into natural gas business. (DNA)
RINL and SAIL sign MoU to acquire high-grade limestone block in Oman. (ET)
Dr Reddy’s eyes acquisition in specialty business and customs pharma services segment. (BL)
Usha Martin to spend Rs8.5bn on capacity expansion over the next 30 months. (DNA)
CPCL to expand capacity of its Chennai refinery at a cost of Rs50bn. (FE)
Big Bazaar targets Rs80bn turnover by next financial year. (BL)
GHCL plans to acquire soda ash companies in US and China. It is also exploring expansion and greenfield projects in India. (BL)
Chettinad Cement announces 1:6 rights issue to raise up to Rs2.5bn to fund expansion plans. (BL)
Simplex Concrete Piles India gets Mumbai Metro’s Phase I civil works contract worth Rs4.5bn. (FE)
Simplex Infra plans to recruit people in Sri Lanka, Bangladesh and Philippines. (DNA)
Siemens signs a MoU with Maharashtra Government to support company’s expansion plans. (FE)
VF Arvind Brands, a 60:40 JV between the US- based VF Corp. and Arvind Mills plans to unveil large format outlets this year. (ET)
Indoco Remedies to take 100% equity stake in Shree Herbal Technologies for Rs25mn. (FE)
Economy News
The GoM on aviation disapproves the proposal of allowing overseas flights without completion of five years of mandatory domestic service. (ET)
I&B Ministry has approached TRAI for recommendations on restructuring of FDI cap in all segments of the media sector. (ET)
TRAI is studying whether the current cap of 25 different tariff plans per service provider per circle should be further tightened. (ET)
The Government is examining a proposal of providing tax benefits to companies using clean technology and generating carbon credits. (ET)
FDI in industrial parks to get a waiver from 3-year lock-in and minimum capitalization conditions. (ET)
Steel demand to grow by 8-9% in 2008 as per Fitch Ratings. (FE)
Navi Mumbai airport to be ready by 2012. (BS)
Orissa signs three MoUs to set up new steel units. (FE)
Precious metals end mixed
Gold prices end marginally lower after striking another record high
Precious metal prices ended mixed today, Tuesday, 29 January, 2008 as gold prices gave up earlier gains and ended lower for the day. Gold prices earlier hit an intra day high but then fell as traders speculated about rate cut outlook from Fed tomorrow. Gold also fell on speculation mining operations will resume in South Africa. South Africa produces 10% of the world's gold. Silver prices gained today.
Gold generally moves in the opposite direction of the U.S. currency. Gold, as a dollar-denominated commodity, suffers from dollar strength.
Comex Gold for February delivery fell $2 (0.2%) to close at $925.1 an ounce on the New York Mercantile Exchange. Earlier in the day, it hit an intraday price of $933.3 an ounce. Last week, gold prices gained 3.3%. This year, prices have gained 10.5% till date.
Comex Silver futures for March delivery rose 5 cents (0.3%) to $16.8 an ounce. Silver has gained 12.8% in 2008. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.
The Federal Open Market Committee policy-setting meeting started today and most traders expect Federal Reserve to announce another interest-rate cut tomorrow to avoid the US economy from plunging into recession.
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.
Gold witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
In the currency markets today, the dollar was mixed. The dollar index, which tracks the performance of the greenback against six other major currencies, was at 75.612, compared with 75.590.
In the energy market today, crude oil rose a fourth day on speculation the U.S. Federal Reserve will reduce interest rates. Crude oil for March delivery rose 65 cents ( 0.7%) to settle at $91.64 a barrel.
Last week, Federal Reserve slashed its benchmark interest rate 0.75% to 3.5% after global equity markets tumbled on concern the slumping U.S. economy will drag down the growth rates of other nations. Federal Reserve’s decision came as a surprise to everyone but Fed took the same as stocks markets worldwide, had been plunging on fear that US economy would be hitting a recession soon.
Gold had climbed 31% in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. The Fed reduced federal funds rate three times in FY 2007.
At the MCX, gold prices for February delivery closed lower by Rs 27 (0.23%) at Rs 11,701 per 10 grams. Prices rose to a high of Rs 11,800 per 10 grams and fell to a low of Rs 11,651 per 10 grams during the day’s trading.
At the MCX, silver prices for March delivery closed Rs 26 (0.12%) higher at Rs 21,599/Kg. Prices opened at Rs 21,400/kg and rose to a high of Rs 21,599/Kg during the day’s trading.
Crude gains for fourth straight day
Prices rise on hopes that Fed will come with another rate cut tomorrow
Crude prices ended higher for the third consecutive day today, Tuesday, 29 January, 2008. Expectations about another rate cut from Federal Reserve tomorrow boosted prices. In the earlier three sessions, crude had gained almost $4.3. A lower interest rate has chances of helping the US economy warding off recession and thus boost energy demand.
Crude-oil futures for light sweet crude for February delivery today closed at $91.64/barrel (higher by $0.65/barrel or 0.7%) on the New York Mercantile Exchange. Prices are 70% higher than a year ago. Earlier it dropped to an intraday low of $90.33.
In the currency markets today, the dollar was mixed. The dollar index, which tracks the performance of the greenback against six other major currencies, was at 75.612, compared with 75.590.
Traders are expecting that U.S. Federal Reserve will reduce interest rates further tomorrow to spur economic growth in the world's largest energy consuming country.
Last Tuesday, Federal Reserve slashed its benchmark interest rate 0.75% to 3.5% after global equity markets tumbled on concern the slumping U.S. economy will drag down the growth rates of other nations. Federal Reserve’s decision came as a surprise to everyone but Fed took the same as stocks markets worldwide, had been plunging on fear that US economy would be hitting a recession soon.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
EIA expected to show increase in crude and gasoline supplies for last week
Brent crude oil for March settlement today rose $0.62 (0.7%) to $92 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas declined amid forecasts for warmer weather and lower heating demand. Gas for delivery under the February contract, which expires today, fell 9.9 cents (1.2%) to settle at $7.996 per million British thermal units.
Against this backdrop, reformulated gasoline was up slightly at $2.3295 a gallon. February heating oil was down slightly at $2.5418 a gallon.
Members of the OPEC 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 1 February, 2008 meeting in Vienna. The cartel is expected to increase production.
At the MCX, crude oil for February delivery closed at Rs 3,575/barrel, higher by Rs 6 (0.17%) against previous day’s close. Natural gas for January delivery closed at Rs 310.3/mmtbu, lower by Rs 4.6/mmtbu (1.5%).
Tomorrow, EIA will report the inventory status of crude and crude product inventories for week ended 28 January, 2008. Market is expecting a build up in both cases.
Nifty January 2008 futures trading at discount
Turnover in F&O segment rises
Nifty January 2008 futures were at 5276.10, at a discount of 4.70 points as compared to spot closing of 5280.80.
The NSE's futures & options (F&O) segment turnover was Rs 56,019.95 crore, which was higher than Rs 43,395.88 crore on Monday, 28 January 2008.
Reliance Energy January 2008 futures were at discount, at 2111, compared to the spot closing of 2113.
State Bank of India January 2008 futures were at premium, at 2233, compared to the spot closing of 2230.70.
NTPC January 2008 futures were near spot price, at 211.75, compared to the spot closing of 211.55.
In the cash market, the S&P CNX Nifty gained 6.70 points or 0.13% at 5280.80.
KNR Constructions Allotment - Subscription Details
| Sr.No. | Category | No. of times of total meant for the category | ||
| 1 | Qualified Institutional Buyers (QIBs) | 1.3750 | ||
| 1(a) | Foreign Institutional Investors (FIIs) | |||
| 1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | |||
| 1(c) | Mutual Funds | |||
| 1(d) | Others | |||
| 2 | Non Institutional Investors | 3.2059 | ||
| 2(a) | Corporates | |||
| 2(b) | Individuals (Other than RIIs) | |||
| 2(c) | Others | |||
| 3 | Retail Individual Investors (RIIs) | 0.2772 | ||
| 3(a) | Cut Off | |||
| 3(b) | Price Bids | |||
| 4 | Employee Reservation | 0.6113 | ||
| 4(a) | Cut Off | |||
| 4(b) | Price Bids |
Onmobile IPO Allotment - Subscription details
| Sr.No. | Category | No. of times of total meant for the category | ||
| 1 | Qualified Institutional Buyers (QIBs) | 17.1605 | ||
| 1(a) | Foreign Institutional Investors (FIIs) | |||
| 1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | |||
| 1(c) | Mutual Funds | |||
| 1(d) | Others | |||
| 2 | Non Institutional Investors | 2.6258 | ||
| 2(a) | Corporates | |||
| 2(b) | Individuals (Other than RIIs) | |||
| 2(c) | Others | |||
| 3 | Retail Individual Investors (RIIs) | 1.3080 | ||
| 3(a) | Cut Off | |||
| 3(b) | Price Bids |
Shriram EPC IPO Analysis
Shriram EPC is one of the leading providers of integrated design, engineering, procurement, construction and project management services for renewable energy projects, process plant, metallurgical plants and municipal services sector projects. Besides engineering, procurement and construction (EPC), it also manufactures and installs 250-KW wind turbine generator (WTG) and cooling towers.
The renewable energy business comprises EPC execution of biomass power plant, co-generation power plant projects and bio-ethanol plants. Bio-ethanol technology is sourced from a leading European player with project-specific arrangement. Similarly, EPC solutions for process and metallurgy plants including captive and non-captive thermal power plants are also undertaken. In the process and metallurgy space, bids are placed as part of larger project-specific consortium with international players such as Danielli of Italy for rolling-mill contracts, SSIT of China for coal-dust injection, Waterbury of Canada for stainless-steel mill for an integrated steel plant, Beltran of the US for wet electrostatic precipitators, and Envirotherm GmbH of Germany for coal gasification. In the water and wastewater space, EPC solution is given for treatment plants, water and sewerage infrastructure and pipe rehabilitation.
The WTG business is focused on developing, manufacturing, erecting and commissioning 250-KW WTGs. Currently, megawatt class WTGs are being developed through a subsidiary and associate company, which have formed a joint venture (JV) with Leitwind of the Netherlands. End December 2007, over 210 WTGs were supplied and installed and four wind farm projects developed for clients in India, particularly in Tamil Nadu. The first export order to supply 250-KW WTG to a client in Thailand in fiscal 2007 was executed recently. To move up to MW class of WTGs, one 1.35-MW WTG was installed in Tamilnadu in September 2007 and another is to be installed in Karnataka by February 2008.
The process and metallurgy business accounted for 62.7% of the EPC contract revenue and 39.1% of total consolidated revenue in the year ended March 2007(FY 2007). The biomass power-plant business generated about 26.8% of the EPC contract revenue and 16.7% of consolidated revenue. The municipal services business accounted for 106% of the EPC contract revenue and 6.6% of consolidated revenue. The WTG business generated 35.9% of consolidated revenue.
Shriram EPC has three associate companies manufacturing WTGs, renewable power generation, and metallurgical coke. Orient Green Power (OGPL) is the associate company in which Shriram EPC holds a 48.7% stake, focuses on developing renewable energy source based (biomass and hydel) power plants on build-own-operate (BOO) and build-own-operate-transfer (BOOT). To date, OGPL has identified four biomass power projects in Dindugal, Pattukottai, Vandavasi and Pollachi in Tamilnadu of 1x7.5 MW each, aggregating 30 MW ; one mini hydel power project (of 15 MW) in Orissa; and one poultry-based power project (of 6 MW) in Andhra Pradesh for development. The licence for these six projects to be executed are already in place with third parties. OGPL is expected to acquire a majority / entire stake in each of the special purpose vehicle (SPV). OGPL has also bid for licences for two biomass power plants in Punjab and one in Madhya Pradesh, with a capacity of 10 MW each. Ennore Coke is the listed company and the second associate. Leitner Shriram Manufacturing is the other associate company, where Shriram EPC owns 49%, with the balance 51% held by the Netherlands-based JV partner, Leitwing BV, manufacturing 1.35-MW class WTG machines. This JV is expected to commence operation from January 2008.
Hamon Shriram Cottrell (formerly Hamon Thermopack Engineers) and Shriram Leitwind are the two subsidiaries of Shriram EPC. While Hamon Shriram Cottrell manufactures and erects cooling towers and air pollution control units, Shriram Leitwind (Shriram EPC owns 51%) markets WTG of both 25 KW class and 1.35 MW class. Shriram EPC also plans to shift the manufacturing and marketing of the KW machine business to the newly formed JV companies. Shriram EPC acquired majority stake ( 50% + 2 shares) in erstwhile Hamon Thermopack Engineers from Hamon Group and also got exclusive licence to design, manufacture and sell certain air pollution products and systems from the stable of Hamon Research Cottrell Inc.
The issue proceeds will be used to capitalise the subsidiaries and associate companies to purchase of equipment for pipe-rehabilitation projects and fund expenditure for general corporate purpose.
Strengths
Presence in potentially strong growth sectors such as renewable energy including bio-ethanol plants, metallurgical EPC contracts and water and waste water infra projects. This sector presents strong potential with increasing capital expenditure. Operating in complementary projects such as cooling towers and air pollution control equipment, and coal gasification solutions will help to maximise the business share from both existing and future clients.
Consolidated order book stood at Rs 2279.18 crore end December 2007, translating into about 7.7 times FY 2007 revenue. The order book is also diverse by project mix with the share of process and metallurgical-plant projects including cooling towers and pollution control equipment about 57%, municipal services 9.2%, and biomass-power plant 9.3%. The WTG business accounted for about 7.7% of the total order book. Has also bagged a Euro 69-million contract to design and build a 280-kilo litre per day (KLPD) bio-ethanol plant in Czech Republic.
Successful project execution capability in time-bound and cost-effective manner backed by an able management team. Has executed large and complex projects on time or before the scheduled completion date. As lump-sum turnkey projects do not come with a price-escalation clause, timely completion and cost effectiveness is a big determinant of profitability.
Weakness
Though has a strong presence in 250 KW class, has entered into the MW class with a relatively new player as technology partner. Furthermore, the gearless technology of Leitwind is new, without a track record. This and competition in the global wind-power equipment market calls for strong marketing muscle, which is yet to be seen.
A single order (the EPC contract for setting up of a 1.5-tonne per day grassroot cement plant for Sree Jayajothi Cements in Andhra Pradesh) constituted about 25% of the total order book end December 2007. About 10 projects represented 72.6% of the order book end December 2007. Any delay or holdback of the project will affect the revenue flow.
GEI Industrial Systems has filed a petition before the Company Law Board against Compagnie Financiere Hamon and other praying for restraining Hamon/ or any subsidiary or group company from entering into any new JV and cancellation/ termination of existing JV. In the event of adverse decision against Hamon, the JV Hamon Shriram will be asked to terminate.
Has little experience in the successful execution of bio-ethanol plant. Its ability to scale up in this market by competing against established players is to be seen. Similarly, has also won order for the execution of a cement plant and a coal-gasification plant, where it lacks experience.
Valuations
Consolidated revenue in the fiscal ended March 2007 was higher by 105% to Rs 295.72 crore and the restated net profit up 117% to Rs 14.06 crore. The EPS for FY 2007 works out to Rs 3.3 on post-IPO equity. At the offer price band of Rs 290-Rs 330, the P/E works to 87.9-100 times the FY 2007 consolidated earning. However, the P/E based on consolidated half-yearly EPS (annualised) works out to 59.2 (on the lower price band of Rs 290) times to 67.4 times (on the upper price band of Rs 330). Given the diverse operational profile, there is no comparable player of its size. Nevertheless, peer players such as Thermax, BGR Energy, Praj and Suzlon Energy are quoting at a P/E of 42.3, 175.8, 38.1 and 58.7 times their FY 2007 consolidated earningIndia Daily Technicals - Jan 30 2008
Nifty — The index opened on a positive note yesterday but was unable to hold on to those gains. It drifted lower through the rest of the trading session and ended the day with a gain of only 7 points.
Range-bound — The index has been trading in a narrow band of 5,399 on the upside and 4,996 on the downside for the past four trading sessions. A breakout from the 5,399-4,996 band would be a directional move. The intra-day index has support at around 5,225 and lower support at around 5,071. Resistance is around the 5,399 level; a break above 5,399 could see intra-day strength and the index
testing higher levels of around 5,514.
Conclusion — Intra-day trade a breakout from the 5,339-5,225 range.
India and Pakistan - comparison
Twenty-five thousand years ago, haplogroup R2 characterized by genetic marker M124 arose in southern Central Asia. Then began a major wave of human migration whereby members migrated southward to present-day India and Pakistan (Genographic Project by the National Geographic Society; http://www.nationalgeographic.com/). Indians and Pakistanis have the same ancestry and share the same DNA sequence. Here's what is happening in India:
The two Ambani brothers can buy 100 percent of every company listed on the Karachi Stock Exchange (KSE) and would still be left with $30 billion to spare. The four richest Indians can buy up all goods and services produced over a year by 169 million Pakistanis and still be left with $60 billion to spare. The four richest Indians are now richer than the forty richest Chinese.
In November, Bombay Stock Exchange's benchmark Sensex flirted with 20,000 points. As a consequence, Mukesh Ambani's Reliance Industries became a $100 billion company (the entire KSE is capitalized at $65 billion). Mukesh owns 48 percent of Reliance.
In November, comes Neeta's birthday. Neeta turned forty-four three weeks ago. Look what she got from her husband as her birthday present: A sixty-million dollar jet with a custom fitted master bedroom, bathroom with mood lighting, a sky bar, entertainment cabins, satellite television, wireless communication and a separate cabin with game consoles. Neeta is Mukesh Ambani's wife, and Mukesh is not India's richest but the second richest.
Mukesh is now building his new home, Residence Antillia (after a mythical, phantom island somewhere in the Atlantic Ocean). At a cost of $1 billion this would be the most expensive home on the face of the planet. At 173 meters tall Mukesh's new family residence, for a family of six, will be the equivalent of a 60-storeyed building. The first six floors are reserved for parking. The seventh floor is for car servicing and maintenance. The eighth floor houses a mini-theatre. Then there's a health club, a gym and a swimming pool. Two floors are reserved for Ambani family's guests. Four floors above the guest floors are family floors all with a superb view of the Arabian Sea. On top of everything are three helipads. A staff of 600 is expected to care for the family and their family home.
In 2004, India became the 3rd most attractive foreign direct investment destination. Pakistan wasn't even in the top 25 countries. In 2004, the United Nations, the representative body of 192 sovereign member states, had requested the Election Commission of India to assist the UN in the holding of elections in Al Jumhuriyah al Iraqiyah and Dowlat-e Eslami-ye Afghanestan. Why the Election Commission of India and not the Election Commission of Pakistan? After all, Islamabad is closer to Kabul than is Delhi.
Imagine, 12 percent of all American scientists are of Indian origin; 38 percent of doctors in America are Indian; 36 percent of NASA scientists are Indians; 34 percent of Microsoft employees are Indians; and 28 percent of IBM employees are Indians.
For the record: Sabeer Bhatia created and founded Hotmail. Sun Microsystems was founded by Vinod Khosla. The Intel Pentium processor, that runs 90 percent of all computers, was fathered by Vinod Dham. Rajiv Gupta co-invented Hewlett Packard's E-speak project. Four out of ten Silicon Valley start-ups are run by Indians. Bollywood produces 800 movies per year and six Indian ladies have won Miss Universe/Miss World titles over the past 10 years.
For the record: Azim Premji, the richest Muslim entrepreneur on the face of the planet, was born in Bombay and now lives in Bangalore. India now has more than three dozen billionaires; Pakistan has none (not a single dollar billionaire).
The other amazing aspect is the rapid pace at which India is creating wealth. In 2002, Dhirubhai Ambani, Mukesh and Anil Ambani's father, left his two sons a fortune worth $2.8 billion. In 2007, their combined wealth stood at $94 billion. On 29 October 2007, as a result of the stock market rally and the appreciation of the Indian rupee, Mukesh became the richest person in the world, with net worth climbing to US$63.2 billion (Bill Gates, the richest American, stands at around $56 billion).
Indians and Pakistanis have the same Y-chromosome haplogroup. We have the same genetic sequence and the same genetic marker (namely: M124). We have the same DNA molecule, the same DNA sequence. Our culture, our traditions and our cuisine are all the same. We watch the same movies and sing the same songs. What is it that Indians do and we don't: Indians elect their leaders.
Via http://www.thenews.com.pk
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