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Friday, February 01, 2008

Shriram EPC IPO Allotment - Subscription Details


Sr.No. Category



No. of times of total meant for the category
1 Qualified Institutional Buyers (QIBs)

6.1322
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

0.4108
2(a) Corporates


2(b) Individuals (Other than RIIs)


2(c) Others


3 Retail Individual Investors (RIIs)

0.6291
3(a) Cut Off


3(b) Price Bids


Poll Results - Your Portfolio value?


<>

> 3L <>

>5L <>

>10L 145 (34.60%)

TOTAL Votes : 419

WOW - Plenty of millionaires out here - Hope you have become through profits :)

Thanks for your participation!

Nicholas Piramal, HDFC, ITC, TV Today


Nicholas Piramal, HDFC, ITC, TV Today

TCS communication to employees ...


Dear Colleagues,

Last week, TCS posted results for the third quarter of 2007-08 with revenues rising at 5.04 per cent sequentially to Rs 5,924 crore and net profits rising 6.72 per cent sequentially to Rs 1,331 crore.

As you are well aware, our variable compensation policy is linked to EVA, based on the overall performance of the company and your individual performance. The variable pay component is paid monthly, based on the company’s expected performance for the quarter. As indicated in the annual compensation letters, variable pay may change based on actual performance of the company and the ongoing performance of the individual.

In Q3 this year, we met our revenue target but we fell short of meeting our EVA target due to a combination of internal and external factors. The EVA target forms the basis for the variable pay computation and has been given in advance, each month during Q3. Based on the audited results the EVA-based variable payout amounts to Rs. 293 crore for the quarter. The actual variable payout based on expected EVA given in advance amounts to Rs. 376 crore. The advance payment that has to be adjusted amounts to Rs. 83 crore, which will be recovered during Q4 from the employees. The recovery would be reflected in your salary in the months of February and March 2008.

TCS continues to enjoy industry-leading growth. We expect to meet our EVA targets in Q4. There is a strong business pipeline and we are very positive about the future. In order to be globally competitive and maintain our leadership position, we not only need to grow revenues, but also manage our costs better and enhance operational efficiencies.

In Q4, we will follow the same basis of advance payment of Variable Pay as per expected EVA projections at the beginning of 2007-08. When the audited results for Q4 are announced in April 2008, appropriate adjustment in Variable Pay will be made either upwards or downwards as the case may be.

We will shortly let you know the actual amount to be recovered through a letter in Ultimatix. On viewing your letter, in case you need any further clarification, please send in your query to the following mail address – ......@tcs.com and we will respond to your questions

Warren Buffet - Wisdom Quotes


  • "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."
  • "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
  • "You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right—and that’s the only thing that makes you right. And if your facts and reasoning are right, you don’t have to worry about anybody else."
  • "Our favourite holding period is forever." Letter to Berkshire Hathaway shareholders, 1988
  • "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is usually the reputation of the business that remains intact."
  • "Risk comes from not knowing what you're doing."
  • "If you don't know jewellery, know the jeweller."
  • "If you don't feel comfortable owning something for 10 years, then don't own it for 10 minutes."
  • "There seems to be some perverse human characteristic that likes to make easy things difficult."
  • "One’s objective should be to get it right, get it quick, get it out, and get it over... your problem won’t improve with age."
  • "A public-opinion poll is no substitute for thought."
  • "In the insurance business, there is no statute of limitation on stupidity."
  • "If a business does well, the stock eventually follows."
  • "The most important quality for an investor is temperament, not intellect... You need a temperament that neither derives great pleasure from being with the crowd or against the crowd."
  • "The future is never clear, and you pay a very high price in the stock market for a cheery consensus. Uncertainty is the friend of the buyer of long-term values."
  • "We will only do with your money what we would do with our own."
  • "Occasionally, a man must rise above principles."
  • "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."
  • "Of one thing be certain: if a CEO is enthused about a particularly foolish acquisition, both his internal staff and his outside advisors will come up with whatever projections are needed to justify his stance. Only in fairy tales are emperors told that they are naked."
  • When asked how he became so successful in investing, Buffett answered: "we read hundreds and hundreds of annual reports every year."
  • "I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that. “I’m paying $32 billion today for the Coca Cola Company because...” If you can’t answer that question, you shouldn’t buy it. If you can answer that question, and you do it a few times, you’ll make a lot of money."
  • "You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if it can’t stand applying pencil to paper, you’d better think it through some more. And if you can’t write an intelligent answer to those questions, don’t do it."
  • "I really like my life. I've arranged my life so that I can do what I want."
  • "Someone's sitting in the shade today because someone planted a tree a long time ago."

  • "Price is what you pay. Value is what you get."
  • "For some reason, people take their cues from price action rather than from values. What doesn’t work is when you start doing things that you don't understand or because they worked last week for somebody else. The dumbest reason in the world to buy a stock is because it's going up. "
  • "Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well."
  • "We have tried occasionally to buy toads at bargain prices with results that have been chronicled in past reports. Clearly our kisses fell flat. We have done well with a couple of princes - but they were princes when purchased. At least our kisses didn't turn them into toads. And, finally, we have occasionally been quite successful in purchasing fractional interests in easily-identifiable princes at toad-like prices."- 1981 Chairman's Letters to Shareholders
  • "Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results."- 1974 Letter to Shareholders
  • "Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid." - Berkshire Hathaway 1998 Annual Meeting
  • "If you're an investor, you're looking on what the asset is going to do, if you're a speculator, you're commonly focusing on what the price of the object is going to do, and that's not our game."- 1997 Berkshire Hathaway Annual Meeting
  • "Despite three years of falling prices, which have significantly improved the attractiveness of common stocks, we still find very few that even mildly interest us. That dismal fact is testimony to the insanity of valuations reached during The Great Bubble. Unfortunately, the hangover may prove to be proportional to the binge."- March 2003
  • On acquiring bad companies for cheap prices: "In my early days as a manager I, too, dated a few toads. They were cheap dates - I've never been much of a sport - but my results matched those of acquirers who courted higher-price toads. I kissed and they croaked."
  • "I like to go for cinches. I like to shoot fish in a barrel. But I like to do it after the water has run out."- Oct. 2003 talking with Wharton MBA students
  • "The important thing is to keep playing, to play against weak opponents and to play for big stakes."- Nov. 2002 talking with students at Gaston Hall

NSE Bulk Deal Watch - Feb 1 2008


Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
1-Feb-08,FCH,Future Capital Holdings L,KOTAK MAHINDRA (UK) LTD,BUY,500000,879.99,-
1-Feb-08,AUROPHARMA,Aurobindo Pharma Ltd.,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,270000,299.47,-
1-Feb-08,ELGIEQUIP,Elgi Equipments Ltd,ANVIL SHARE & STOCK BROKING PVT. LTD.,SELL,369971,57.95,-
1-Feb-08,IVRCLINFRA,IVRCL Infra & Proj Ltd,MASON STREET ADVISORS LLC A/C NORTHWESTERN MUTUAL,SELL,722000,432.68,-
1-Feb-08,MADHUCON,Madhucon Projects Limited,ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD,SELL,250000,700,-

BSE Bulk Deals to Watch - Feb 1 2008


Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
1/2/2008 531190 A V COTTEX I SUNIL KUMAR SALUJA HUF S 34700 20.25
1/2/2008 531190 A V COTTEX I VIDHYAWANTI S 46000 20.25
1/2/2008 530715 ALPS INDUST MORGAN STANLEY MAURITIUS COMPANY LTD S 699505 58.50
1/2/2008 531881 ARVIND CHEM GAURAV VINIMAY PVT LTD B 36597 34.65
1/2/2008 505506 AXON INFOTEC K VISWANATH S 3750 51.58
1/2/2008 507500 BAJ HIN SUG ISHWAR DAYAL MITTAL S 352595 47.00
1/2/2008 512296 BHAGYA INL MORGAN STANLEY MAURITIUS COMPANY LTD S 565000 52.40
1/2/2008 532813 C & C CONSTR MORGAN STANLEY MAURITUS COMPANY LTD S 289342 212.50
1/2/2008 524388 CRAZY INFOTE KETAN BHANUCHANDRA MEHTA S 30000 60.95
1/2/2008 531913 GOPAL IRON MIHIR B SHAH B 50000 11.90
1/2/2008 519248 JHUN.VANS. B N SPONGE IRON PRIVATE LTD. B 36814 146.34
1/2/2008 519248 JHUN.VANS. BOLT SYNTHETICS PVT LTD. S 36814 146.35
1/2/2008 523792 MAZDA LTD SHAHRA SECURITIES PVT. LTD. S 25566 72.95
1/2/2008 526169 MULTIBASE 1 VISHAL SHAH S 154784 42.25
1/2/2008 530047 RAI SH REK M C S BUILDWELL PVT LTD B 30125 64.12
1/2/2008 532793 SHREE ASHTA MAVI INVESTMENT FUND LIMITED B 149710 322.00
1/2/2008 532793 SHREE ASHTA ACCURATE MERCANTILE PVT LTD S 83000 321.86
1/2/2008 531499 SYBLY INDUSR SHRESHTH TOTEJA B 26580 10.46
1/2/2008 531703 TRIBHVAN HSG BISHWARAJ ENTERPRISES S 33000 27.35
1/2/2008 532757 VOLTAMP TRAN MORGAN STANLEY MAURITIUS COMPANY LTD S 72048 1595.00
31/1/2008 517973 DMC INTER CENTENARY SOFTWARE PRIVATE LIMITED B 20326 24.50
31/1/2008 517973 DMC INTER PERT CONSULTANTS LIMITED S 20000 24.86
31/1/2008 531863 GEEKAY FINAN SIGRUN REALTIES LTD B 25530 68.90
31/1/2008 531137 GEMSTONE INV PATEL RAXESHKUMAR K B 25000 22.69
31/1/2008 523710 SAYAJ HOTELS XITIJ INVESTMENTS S 112966 101.68
31/1/2008 532886 SEL MANUF CHITRA JITENDRA MAYEKAR S 172223 236.05
30/1/2008 517973 DMC INTER CENTENARY SOFTWARE PRIVATE LIMITED B 24727 25.50

PE investment in India likely to be US$48bn by 2010: ASSOCHAM


Real Estate sector is predicted to be the best beneficiary of PE landscape in India which would give them profit margins, varying anywhere between 35% and even 50%

Private Equity (PE) overseas firms investment in Indian market is likely to touch US$48bn in next two years as approximately over 400 such firms are operating in Indian market whose number would further scale up by another 69 or 70 by 2010, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM) because of potential factors.

Real Estate sector is predicted to be the best beneficiary of PE landscape in India which would give them profit margins, varying anywhere between 35% and even 50% as per estimates made by the ASSOCHAM in its yet to be published paper, Private Equity–The Money Tree.

In 2007, India attracted the highest PE investments, the valuation for which is estimated at US$17.14bn from emerging economy including China. As compare to India, China attracted less than 50% of PE investments in 2007, the estimates for which are at US$8.3bn.

Interestingly in 2006, China received US$13bn in PE investments compare to 7bn in India. This differential is indicative of the fact that India has already established an edge over China as far as PE Investments are concerned and its hegemony would continue for another few more years because of prospects to absorb such investments would brighten by much more vigorous pace, says the ASSOCHAM Venugopal N. Dhoot.

Releasing the findings of the paper Dhoot said, "no one could have predicted that Real Estate sector, which attracted in nearly US$1mn of PE in 2005, would go on receive US$820mn in 2006. Other promising sectors included information technology, banking and financial services, health care and pharmaceuticals.

A total of 386 BE happened in 2007, mainly in real estate, infrastructure and financial services space. The IT and ITeS segments led the charts in terms of volumes, accounting for 66 deals. Some of the top deals concluded in 2007 include Teamsek Holdings $1096 million in Bharati Airtel, Deutsche Bank, Citi group and other international investors, US$1000mn in GMR infrastructure and ICICI venture Funds US$800mn in JP infratech.

The Indian real estate an infrastructure sectors have been a key contributor to this rising inflows. Real estate emerged as the favourate segment with 26% share in all private equity investment in value term, receiving $2.6 billion in 32 deals, closely followed by Telecom with 21% share, investment touching $2.1 billion, says the ASSOCHAM paper.

It primes out that some of the major PE funds which are active in Indian market are Temasek Holdings, investment arm of Singapore government, Blackstone Group, a global private equity and investment management firm, Warburg Pincus, Carlyle Group, Washington and Actis Capital.

According to the study, PE has emerged as an attractive midpoint along the financial spectrum for Indian companies seeking to raise capital. This is evident from growth of the PE market in India every year, from US $1.1 billion invested in 60 deals in 2004 to US$2bn in 124 deals in 2005. Cumulatively, from April 2006 to February 2007, an amount of $ 11.89 billion has come in equity.

This marks a growth of 176% in dollar terms in FDI inflows into India cumulatively. The average PE ticket size has increased to $26 million, from $16 million a year ago. Conservative estimates suggest that approximately 150 PE funds are scouting for opportunities in India with a funding base edging towards $10 billion. PE today comprises the largest component of Foreign Direct Investment (FDI) in India with FDI inflows in equity only in February 2007 amounted to $698 million, compared to only $127 million in February 2006, a huge increase of 450%.

Weekly Positional Calls - Feb 3 2008


JSW Steel

ONGC

SAIL

IOC

HCL Tech

Post Market Commentary - Feb 1 2008


The market closed on an upbeat note tracking favoring cues from the global markets. Heavy buying across the counters led the benchmark indices to beat its four day losing trend as well due to the smooth expiry of January 2008 derivatives contracts. The market opened on a firm note but lost the grip soon to pare all its gains but later on gathered the momentum towards the mid session to close with handsome gains. Whereas the Mid cap and Small Cap failed to attract the investors confidence as most selling was seen from these baskets. Inflation based on the wholesale price index (WPI) rose to 3.93% for the week ended 19 January 2008 from 3.83% in the previous week. The BSE Sensex closed higher by 584.71 points at 18,233.42 while NSE Nifty closed up by 179.8 points at 5,317.25. The BSE Mid Cap and Small Cap indices also closed lower by 17.60 points and 51.31 points at 7,749.02 and 10,073.11 respectively.

BSE Metal index closed higher by 556.06 points at 15,868.98. Scrips that advanced are Sterlite Inds (8.60%), JSW Steel (7.31%), Hindalco Inds (6.73%), Tata Steel (5.86%), SAIL (5.46%).

BSE Oil & Gas index grew by 301.52 points to close at 11,006.72. Gainers are BPCL (5.82%), ONGC (5.68%), RPL (4.97%), Cairn India (4.59%), RNRL (2.66%) .

BSE Auto index closed up by 171.13 points at 5,003.61 as Apollo Tyres (8.14%), Hero Honda (7.04%), Tata Motors (6.82%), Maruti Suzuki (6.60%), Bajaj Auto (3.99%) closed higher.

BSE FMCG index increased by 58.32 points to close at 2,225.66 as Rei Agro (4.96%), ITC (4.94%), Marico (1.96%), Dabur (1.47%) closed in green.

BSE Bankex index grew by 205 points to close at 10,918.91. Scrips that advanced are ICICI bank (4.55%), BOB (4.33%), IOB (2.96%), BOI (2.63%), Canara bank (2.18%).

BSE Power index increased by 54.15 points to close at 3,795.42 as Tata Power (4.77%), Suzlon Energy (4.55%), NTPC (3.84%), Power Grid (2.23%), ABB (1.10%) closed in green.

Market ends firm as IT stocks rally


The rise in the inflation rate could not dampen the market spirits as the Sensex staged gains of around 600 points at close. The market reported a solid performance on the back of strong all-round buying even though other major Asian indices exhibited a subdued trend in the morning trades. The market opened with a gap of 172 points at 17,821, but slipped immediately on selling in heavyweight, realty, and power stocks and touched the day's low of 17,535. However, buying at lower levels in technology, metal, auto and oil stocks saw the Sensex shed all of its losses and enter into the green again. Sustained buying thereafter helped the Sensex to regain the 18,000 mark and touch the intra-day high of 18,312. The Sensex finally closed the session at 18,233, up 584 points. The Nifty ended the session up 180 points at 5,317.

The market breadth was negative, with the losers outpacing the gainers in the ratio of 1.43:1. Of the 2,795 stocks traded on the Bombay Stock Exchange (BSE), 1,113 stocks advanced, 1,606 stocks declined and 76 stocks ended unchanged. Among the sectoral indices, the BSE IT index moved up by 5.77% followed by the BSE Teck index (up 3.94%), the BSE Metal index (up 3.63%) and the BSE Auto index (up 3.54%). However, the BSE CD index and the BSE Realty index closed in the negative territory and shed 0.05% each.

Among the tech stocks Satyam Computer shot up 8.18% at Rs421, TCS soared 6.17% at Rs929, Infosys surged 5.80% at Rs1,591 and Wipro jumped 5.79% at Rs437. Among the other gainers Tata Motors moved up by 6.82% at Rs754, Hindalco scaled up 6.73% at Rs177, Maruti Suzuki was up 6.60% at Rs905, Tata Steel advanced by 5.86% at Rs776, ONGC gained 5.68% at Rs1,045 and HDFC advanced by 5.44% at Rs2,998. However, ACC slipped 3.72% at Rs754, followed by Ambuja Cement and HDFC Bank, which were down 0.79% and 0.05% respectively.

Over 1.47 crore Ispat Industries shares changed hands on the BSE followed by RNRL (1.28 crore shares), Reliance Petroleum (1.07 crore shares), Hindustan Futuristic Communication (93.67 lakh shares) and Future Capital (88.84 lakh shares).

Valuewise, Future Capital registered a turnover of Rs784 crore on the BSE followed by Reliance Energy (Rs246 crore), Reliance Petroleum (Rs178 crore), RNRL (Rs177 crore) and Reliance Industries (Rs162 crore).

Market to take cue from global equities


Lack of any positive triggers and subdued foreign inflows suggest a choppy trade in the coming week. The forthcoming Union Budget 2008-09, to be presented at the fag end of February 2008, will be one event that market will look forward to in the near term.

Possibility of a recession in the US economy looming large and with no end to bad news regarding US sub-prime mortgage crisis, weak global market sentiments may weight on the domestic bourses. The global markets were unable to avert selling pressure after Europe's largest bank by assets, UBS AG reported record loss of about $14 billion on assets infected by sub-prime mortgages in the US.

The US Federal Reserve (Fed) cut interest rates for the second time in eight days on 30 January 2008 in an effort to stimulate the flagging US economy. The Fed cut the rate by 0.5%, bringing its key lending rate to just 3%. On Tuesday, 22 January 2008 the US Federal Reserve bank slashed rates by 0.75%.

However, contradicting the expectations of a rate cut, the Reserve Bank of India (RBI) kept all key rates unchanged at a meeting held on 29 January 2008. A 75-basis-point cut in the interest rates by the US Fed had renewed expectations that the RBI would follow suit by a rate cut. However, these expectations were not met due to continuing inflation concerns on the domestic front and an increasingly worsening international situation.

The 30-share BSE Sensex fell 119.08 points or 64% to 18242.58, in the week ended 1 February 2008. The S&P CNX Nifty lost 66.1 points or 1.22% to 5317.25, in the week.

The BSE Small-Cap index lost 348.58 points or 3.34% to 10072.32 in the week. The BSE Mid-Cap index fell 259.58 points or 0.04% to 7761.54 in the week.

Annual inflation, based on the wholesale price index (WPI), rose 3.93% in the week ended 19 January 2008 as against 3.83% in the week ended 12 January 2008.

Market drifts lower in volatile trade


The market witnessed alternate bouts of buying and selling last week. Continuing worries about the slowing US economy and its spillover effect in Asian market kept the markets volatile during the week.

Reserve Bank of India's (RBI) bitter stance to maintain status quo on interest rates, dampened the market sentiment. The market was expecting the RBI to lower the short-term lending rate by 0.25% points, after a hefty 75 basis points US Fed rate cut last week. Thereafter, another rate cut of 50 basis points by US Federal Reserve on Wednesday, 30 January 2008 was unable to lift market higher.

The US Federal Reserve (Fed) cut interest rates for the second time in eight days on 30 January 2008 in an effort to stimulate the flagging US economy. The Fed cut the rate by 0.5%, bringing its key-lending rate to just 3%. On Tuesday, 22 January 2008 the US Federal Reserve bank slashed rates by 0.75%.

However, contradicting the expectations of a rate cut, the Reserve Bank of India (RBI) kept all key rates unchanged at a meeting held on 29 January 2008. RBI kept rates steady amid inflation concerns on the domestic front and an increasingly worsening international situation.

The 30-share BSE Sensex fell 119.08 points or 64% to 18242.58, in the week ended 1 February 2008. The S&P CNX Nifty lost 66.1 points or 1.22% to 5317.25, in the week.

The BSE Small-Cap index lost 348.58 points or 3.34% to 10072.32 in the week. The BSE Mid-Cap index fell 259.58 points or 0.04% to 7761.54 in the week.

Buying in banking and auto shares helped market recover from day’s low on 28 January 2008. The market had declined sharply in afternoon trade due to fall in Asian markets. On that day, the BSE Sensex declined 208.88 points or 1.14% at 18,152.78. The broader CNX S&P Nifty was down 109.25 points or 2.03% at 5,274.10. Banking and auto shares were in focus ahead of the monetary policy review on Tuesday, 29 January 2008.

The market drifted lower in what was a choppy trading session on 29 January 2008. The market suffered sharp loses in afternoon trade as the sentiment was dampened by the Reserve Bank of India (RBI) keeping key rates - repo rate, reverse repo rate, bank rate and cash reserve ratio, unchanged at its quarterly monetary policy review announced on 29 January 2008. BSE Sensex declined 60.84 points or 0.34% at 18,091.94. However, the broader CNX S&P Nifty rose 6.70 points or 0.13% at 5,280.80.

On 30 January 2008, 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 later that day. The BSE Sensex plunged 344.98 points or 1.91% at 17746.96. The broader based S&P CNX Nifty was down 113.20 points or 2.14% at 5167.60.

On 31 January 2008, the market extended losses for fourth straight day in highly volatile trade. Volatile movements in late trade were due to expiry of January 2008 derivative contracts on that day. The 30-share BSE Sensex declined 109.93 points or 0.62% at 17,648.71. The broader based S&P CNX Nifty was down 30.15 points or 0.58% at 5,137.45.

On 1 February 2008, the market galloped in late trade, to snap its four-day loosing streak, on buying in pivotals. Fresh build-up of positions after a smooth expiry of January 2008 derivative contracts propelled market from lower level. Sensex vaulted 593.87 points or 3.36% at 18,242.58. The broader based S&P CNX Nifty jumped 179.80 points or 3.50% at 5,317.25.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) fell 2.60% to Rs 2541.65.

India’s largest private sector bank in terms of net profit ICICI Bank fell 4.88% to Rs 1197.75.

India’s largest listed real estate developer in terms of land bank DLF fell 13.92% to Rs 813.55. The company 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 on 30 January 2008

India’s largest private sector aluminium manufacturer in terms of sales, Hindalco Industries rose 2.05% to Rs 176.90. Hindalco Industries’ net profit declined 16% to Rs 542 crore on 1.44% fall in total income to Rs 4646 crore in Q3 December 2007 over Q3 December 2006. The results were announced on 30 January 2008.

India’s largest cellular services provider in terms of market capitalisation Bharti Airtel fell 0.75% to Rs 907.75. 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 on 30 January 2008.

India’s largest power generation company in terms of market capitalisation National Thermal Power Corporation (NTPC) fell 7.54% to Rs 205.50. The company said on Wednesday, 30 January 2008 it would invest about Rs 4375 crore in setting up a power plant in north-east India.

India’s largest oil exploration company in terms of market capitalisation Oil & Natural Gas Corporation (ONGC) rose 2.86% to Rs 1044.50. As per reports, the Director-General of Hydrocarbons (DGH) has conceded ONGC's demand for a drilling holiday on account of a global rig shortage. The stock moved in a range of Rs 970 and Rs 1034.80 so far during the day

India's second biggest listed telecommunication services provider by sales Reliance Communications fell 8.46% to Rs 611.80. The company posted 48.5% rise in consolidated net profit to Rs 1,372.83 on 29.79% rise in consolidated total income to Rs 4,874.2 crore in Q3 December 2007 over Q3 December 2006. The company announced results on 31 January 2008.

India’s largest private sector steel maker in terms of total output Tata Steel rose 8.73% to Rs 776.45. The company reported 0.45% rise in net profit to Rs 1068.58 crore on 10.34% rise in total income to Rs 5040.95 crore in Q3 December 2007 over Q3 December 2006. The results were announced during trading hours on 31 January 2008.

India’s top tractor maker in terms of sales Mahindra & Mahindra was unchanged at Rs 674.30. 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 on 30 January 2008.

Annual inflation, based on the wholesale price index (WPI), rose 3.93% in the week ended 19 January 2008 as against 3.83% in the week ended 12 January 2008.

On 31 January 2008, Oil Minister Murli Deora informed that the cabinet was likely to consider a fuel price hike next week. The meeting with other members of the ministerial panel formed by the Indian goverment to look into the fuel pricing issue was inconclusive and no decision has been taken as yet.

On 31 January 2008, the goverment revised upwards India's gross domestic product growth (GDP) estimate for 2006-07 to 9.6% from 9.4% reported earlier. This was the highest GDP growth in 18 years. The robust growth of GDP was acheived due to high growth in the manufacturing sector (12%), mining and quarrying (5.7%), electricity, gas and water supply (6%) and construction (12%). Farm output was pegged at 3.8%.

On 30 January 2008, Union Information and Broadcasting Minister Priyaranjan Dasmunsi informed that the cabinet approved easing caps on foreign direct investment in sectors such as civil aviation, petroleum and natural gas, commodity exchanges, credit information services, mining in titanium, industrial parks and construction and development. The minister added that further details will be given shortly. India expects to attract foreign investment of $26 billion in 2007-08, substantially higher than $16 billion a year earlier.

Sensex garners 594 points; settles above 18,000


The market galloped in late trade, to snap its four-day loosing streak, on buying in pivotals. Fresh build-up of positions after a smooth expiry of January 2008 derivative contracts propelled market from lower level. January 2008 derivatives contracts expired on Thursday, 31 January 2008. Earlier today, the market had opened firm but it had slipped in mid-morning trade amid volatile swings before bouncing back.

European markets, which opened after Indian market advanced. Asian markets, which opened before Indian market, rallied after witnessing a shaky start.

Despite the rally, the market breadth was negative. Turnover was also subdued. Shares from software and auto pack were the key drivers of today’s rally. Inflation based on the wholesale price index (WPI) moved up to 3.93% for the week ended 19 January 2008 from 3.83% in the previous week.

The 30-share BSE Sensex vaulted 593.87 points or 3.36% at 18,242.58. Sensex hit a high of 18,312.40 in late trade. At the day's high, the Sensex gained 663.69 points. Sensex hit a low of 17,534.96 in early afternoon trade. At the day’s low, the Sensex lost 113.75 points. It oscillated in a band of 777.44 points for the day.

The broader based S&P CNX Nifty jumped 179.80 points or 3.50% at 5,317.25. Nifty February 2008 futures were at 5314, a discount of 3.25 points as compared to spot closing.

The market breadth was negative in contrast to a positive breadth in early trade: 1,630 shares declined on BSE as compared to 1120 that advanced. 48 shares remained unchanged. 28 out of 30 Sensex stocks advanced.

The BSE Mid-Cap index was down 5.08 points or 0.07% at 7,761.54. The BSE Small-Cap index slipped 52.10 points or 0.52% to 10,072.32.

Turnover in NSE's futures & options segment declined to Rs 35830.69 crore as compared to Rs 78768.81 crore yesterday, 31 January 2008

The total turnover amounted to Rs 35830.69 crore on BSE as compared to Rs 78768.81 crore yesterday, 31 January 2008

Most sectoral indices on BSE posted gains. BSE Metal index (up 3.75% to 15,910.16), BSE Auto (up 3.44% at 5,004.87), BSE IT index (up 5.70% at 3,934.27), BSE TecK index (up 4.07% to 3,420.32), outperformed the Sensex

BSE FMCG index (up 2.59% at 2,225.02), BSE Oil & Gas index (up 2.88% at 11,022.85), BSE Consumer Durables index (up 0.35% to 5,121.58), BSE Health Care index (up 1.08% at 3,642.71), BSE Bankex (up 1.62% at 10,890.27), BSE Capital Goods index (up 0.28% at 16,438.70), BSE Power (up 1.45% to 3,795.42), BSE Realty index (down 0.05% at 9,866.40), BSE PSU index (up 2.27% to 8,376.90), underperformed the Sensex

IT pivotals surged. India’s fourth largest software services exporter Satyam Computer surged 7.88% to Rs 419.90 on 7.23 lakh shares. It was the top gainer from Sensex pack.

Other IT pivotals - Infosys Technoliges (up 5.40% to Rs 1585), Wipro (up 6.21% to Rs 439) and TCS (up 6.71% to Rs 934) also logged gains.

Shares from mid-cap IT pack i flex Solutions (up 9.29% to Rs 1059), Tech Mahindra (up 8.30% to Rs 750), Rolta India (up 8.42% to Rs 253), NIIT Technologies (up 3.86% to Rs 138.40), and Polaris Sofware Lab (up 3.62% to Rs 85.90), also joined the rally

Auto stocks gained on fresh buying. Tata Motors, the country’s top truck market in terms of sales, advanced 6.35% to Rs 751. Its consolidated net profit rose 8.75% to Rs 654.79 crore on 13.85% growth in total income to Rs 9324.69 crore in Q3 December 2007 over Q3 December 2006. The results were announced after market hours on 31 January 2008.

Maruti Suzuki India (up 6.15% to Rs 900.90) and Bajaj Auto (up 4.26% to Rs 2456), were the other gainers from auto sector.

India’s top tractor maker in terms of sales, Mahindra & Mahindra rose 0.84% to Rs 675 after its sales rose 12 % to 22,309 units in January 2008 over January 2007.

India’s largest dedicated housing finance company in terms of revenue Housing Finance Development Corporation gained 5.47% to Rs 2999. The company said on Thursday that it has reduced its retail prime lending rate (RPLR) by 25 basis points, with effect from 1 February 2008.

Tata Steel (up 5.93% to Rs 777), Hindalco Industries (up 6.71% to Rs 176.90) and ONGC (up 6.10% to Rs 1048.50), were the other gainers from Sensex pack.

India’s largest power generation company in terms of market capitalisation National Thermal Power Corporation gained 3.59% to Rs 205. The company said on Wednesday, 30 January 2008 it would invest about Rs 4375 crore ($1.1 billion) in setting up a power plant in north-east India.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) recovered from day’s low of Rs 2424. It rose 2.10% to Rs 2531 on 6.49 lakh shares.

From the frontline banking pack, State bank of India (up 1.19% to Rs 2188), ICICI bank (up 5.10% to Rs 1204), and HDFC Bank (up 0.13% to Rs 1570), advanced.

Mid-cap state run banks were mixed. Andhra Bank (up 1.37% to Rs 92.25), Canara Bank (up 2.26% to Rs 296), and Vijaya Bank (up 1.83% to Rs 66.75), gained. Oriental Bank of Commerce (down 2.68% to Rs 247.20) and Punjab National Bank (down 0.40% to Rs 646), slipped.

DLF, the largest real estate developer in terms of market capitalisation was up 0.30% to Rs 815, off sharply from day’s high of Rs 870. The stock will replace Glaxosmithkline Pharmaceuticals, in S&P CNX Nifty index from 14 March 2008.

Cement shares rebounded from lower levels, but settled in red. India’s second biggest cement maker in terms of total production ACC slipped 3.72% to Rs 753.50, after sliding to a low of Rs 741.10. A total of 1.12 lakh shares changed hands on the counter. It was the top loser from Sensex pack.

North India’s largest cement company in terms of sales Ambuja Cements slipped 1.25% to Rs 118.10, off day’s low of Rs 115.30.

Future Capital Holdings settled at Rs 908 on BSE, at a premium of 19% over IPO price of Rs 765. The stock debuted at Rs 1044 on BSE, a premium of 36.44% over the IPO price. The scrip hit a low of Rs 826.10 and high of Rs 1100.

Future Capital Holdings was the most active counter with a turnover of Rs 784 crore followed by Reliance Energy (Rs 246 crore), Reliance Petroleum (Rs 178 crore), Reliance Natural Resources (Rs 177 crore) and Reliance Industries (Rs 162 crore) in that order.

Ispat Industries was the volume topper clocking volumes of 1.47 crore shares followed by Reliance Natural Resources (1.28 crore shares), Reliance Petroelum (1.07 crore shares), Himachal Futuristic Communications (93.68 lakh shares) and Future Capital Holdings (88.84 lakh shares), in that order

GMR Infrastructure rose 1.24% to Rs 176 after its consortium bagged a contract from the government of Nepal to build a 300 megawatt hydro electric project in Nepal.

GAIL India rose 0.97% to Rs 420.25 on reporting 6.6% fall in net profit to Rs 621.32 crore on 15.80% fall in net sales to Rs 4298.33 in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Thursday, 31 January 2008.

Siemens declined 2.20% to Rs 1637 after it fixed 3 March 2008 as the record date for the purpose of 1:1 bonus issue.

Aurobindo Pharma slipped 0.14% to Rs 294 on bagging a contract worth Rs 70 crore for supplying three products to United Nations Office for Project Services, a non-government organization established by the United Nations.

Punj Lloyd declined 8.90% to Rs 402.90 despite posting 105.7% rise in net profit to Rs 39.16 crore on 91.10% rise in net sales to Rs 1,243.75 crore in Q3 December 2007 over Q3 December 2006. The company announced the results after market hours on 31 January 2008.

Rolta India surged 8.42% to Rs 253 on posting 10.79% rise in net profit to Rs 68.02 crore in on 9.80% rise in net sales to Rs 212.30 crore in Q2 December 2007 over Q1 September 2007. The results were announced after trading hours on Thursday, 31 January 2008.

Hero Honda Motors rose 7.40% to Rs 727. It reported 31.4% rise in net profit to Rs 275.01 crore on 3.5% growth in total income to Rs 2795.17 crore in Q3 December 2007 over Q3 December 2006. The results were announced after market hours on 31 January 2008.

Bharat Petroleum Corporation gained 6.18% to Rs 386 on reporting 4% fall in net profit to Rs 291.30 crore on 19.50% rise in net sales to Rs 28,928.40 crore in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Thursday, 31 January 2008.

A good rollover in derivatives segment was witnessed when the January 2008 derivative contracts expired yesterday, 31 January 2008. As per reports, rollover of Nifty futures from January 2008 series to February 2008 series stood at 75% while rollover was 80% in stock futures

European markets, which opened after Indian market, were firm. Key benchmark indices in United Kingdom (up 1.43% to 5,963.80), France (up 1.56% to 4,945.54) and Germany (up 1.33% to 6,942.79) edged higher.

Select Asian markets extended early gains. Hong Kong's Hang Seng (up 2.85% at 24,123.56), Singapore's Straits Times (up 0.87% at 3,007.80), Taiwan's Taiwan Weighted (up 2.03% at 7,673.99), South Korea's Seoul Composite (up 0.61% at 1,634.53) rose. However, Japan's Nikkei (down 0.70% at 13,497.16), and Shanghai Composite (down 1.43% to 4,320.67) slipped

US markets rallied on Thursday, 31 January 2008, led by financial shares after the world's largest bond insurer, MBIA announced that it expects to retain its credit ratings. The Dow Jones industrial average surged 207.53 points, or 1.67%, to 12,650.36. The S&P 500 index gained 22.74 points, or 1.68%, to 1,378.55, and the Nasdaq Composite index shot up 40.86 points, or 1.74%, to 2,389.86.

Foreign institutional investors (FIIs) sold shares worth Rs 13833.60 crore while mutual funds were net buyers of shares worth Rs 5568.10 crore in the month of January 2008

Meanwhile, as per reports, short selling by the institutional investors may be kicked off a week later than what was earlier scheduled for today, 1 February 2008. Though Securities & Exchange Board of India and stock exchanges are ready for its timely rollout, there seems to be some confusion whether short selling will attract the Securities Transaction Tax (STT) or not. The Central Board of Direct Taxes (CBDT) is yet to clarify on the issue.

Massive NEWS >> Microsoft to BUY Yahoo!


anuary 31, 2008

Board of Directors
Yahoo! Inc.
701 First Avenue
Sunnyvale, CA 94089
Attention: Roy Bostock, Chairman
Attention: Jerry Yang, Chief Executive Officer

Dear Members of the Board:

I am writing on behalf of the Board of Directors of Microsoft to make a proposal for a business combination of Microsoft and Yahoo!. Under our proposal, Microsoft would acquire all of the outstanding shares of Yahoo! common stock for per share consideration of $31 based on Microsoft’s closing share price on January 31, 2008, payable in the form of $31 in cash or 0.9509 of a share of Microsoft common stock. Microsoft would provide each Yahoo! shareholder with the ability to choose whether to receive the consideration in cash or Microsoft common stock, subject to pro-ration so that in the aggregate one-half of the Yahoo! common shares will be exchanged for shares of Microsoft common stock and one-half of the Yahoo! common shares will be converted into the right to receive cash. Our proposal is not subject to any financing condition.

Our proposal represents a 62% premium above the closing price of Yahoo! common stock of $19.18 on January 31, 2008. The implied premium for the operating assets of the company clearly is considerably greater when adjusted for the minority, non-controlled assets and cash. By whatever financial measure you use - EBITDA, free cash flow, operating cash flow, net income, or analyst target prices - this proposal represents a compelling value realization event for your shareholders.

We believe that Microsoft common stock represents a very attractive investment opportunity for Yahoo!’s shareholders. Microsoft has generated revenue growth of 15%, earnings growth of 26%, and a return on equity of 35% on average for the last three years. Microsoft’s share price has generated shareholder returns of 8% during the last one year period and 28% during the last three year period, significantly outperforming the S&P 500. It is our view that Microsoft has significant potential upside given the continued solid growth in our core businesses, the recent launch of Windows Vista, and other strategic initiatives.

Microsoft’s consistent belief has been that the combination of Microsoft and Yahoo! clearly represents the best way to deliver maximum value to our respective shareholders, as well as create a more efficient and competitive company that would provide greater value and service to our customers. In late 2006 and early 2007, we jointly explored a broad range of ways in which our two companies might work together. These discussions were based on a vision that the online businesses of Microsoft and Yahoo! should be aligned in some way to create a more effective competitor in the online marketplace. We discussed a number of alternatives ranging from commercial partnerships to a merger proposal, which you rejected. While a commercial partnership may have made sense at one time, Microsoft believes that the only alternative now is the combination of Microsoft and Yahoo! that we are proposing.

In February 2007, I received a letter from your Chairman indicating the view of the Yahoo! Board that “now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction.” According to that letter, the principal reason for this view was the Yahoo! Board’s confidence in the “potential upside” if management successfully executed on a reformulated strategy based on certain operational initiatives, such as Project Panama, and a significant organizational realignment. A year has gone by, and the competitive situation has not improved.

While online advertising growth continues, there are significant benefits of scale in advertising platform economics, in capital costs for search index build-out, and in research and development, making this a time of industry consolidation and convergence. Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers. Synergies of this combination fall into four areas:

Scale economics: This combination enables synergies related to scale economics of the advertising platform where today there is only one competitor at scale. This includes synergies across both search and non-search related advertising that will strengthen the value proposition to both advertisers and publishers. Additionally, the combination allows us to consolidate capital spending.

Expanded R&D capacity: The combined talent of our engineering resources can be focused on R&D priorities such as a single search index and single advertising platform. Together we can unleash new levels of innovation, delivering enhanced user experiences, breakthroughs in search, and new advertising platform capabilities. Many of these breakthroughs are a function of an engineering scale that today neither of our companies has on its own.

Operational efficiencies: Eliminating redundant infrastructure and duplicative operating costs will improve the financial performance of the combined entity.

Emerging user experiences: Our combined ability to focus engineering resources that drive innovation in emerging scenarios such as video, mobile services, online commerce, social media, and social platforms is greatly enhanced.

We would value the opportunity to further discuss with you how to optimize the integration of our respective businesses to create a leading global technology company with exceptional display and search advertising capabilities. You should also be aware that we intend to offer significant retention packages to your engineers, key leaders and employees across all disciplines.

We have dedicated considerable time and resources to an analysis of a potential transaction and are confident that the combination will receive all necessary regulatory approvals. We look forward to discussing this with you, and both our internal legal team and outside counsel are available to meet with your counsel at their earliest convenience.

Our proposal is subject to the negotiation of a definitive merger agreement and our having the opportunity to conduct certain limited and confirmatory due diligence. In addition, because a portion of the aggregate merger consideration would consist of Microsoft common stock, we would provide Yahoo! the opportunity to conduct appropriate limited due diligence with respect to Microsoft. We are prepared to deliver a draft merger agreement to you and begin discussions immediately.

In light of the significance of this proposal to your shareholders and ours, as well as the potential for selective disclosures, our intention is to publicly release the text of this letter tomorrow morning.

Due to the importance of these discussions and the value represented by our proposal, we expect the Yahoo! Board to engage in a full review of our proposal. My leadership team and I would be happy to make ourselves available to meet with you and your Board at your earliest convenience. Depending on the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.

We believe this proposal represents a unique opportunity to create significant value for Yahoo!’s shareholders and employees, and the combined company will be better positioned to provide an enhanced value proposition to users and advertisers. We hope that you and your Board share our enthusiasm, and we look forward to a prompt and favorable reply.

Sincerely yours,

/s/ Steven A. Ballmer

Steven A. Ballmer

Chief Executive Officer

Microsoft Corporation

GDP grows highest in the past 18 years


The Economy grew an impressive 9.6% in 2006-07, the highest in the past 18 years. Releasing the revised estimates here on Thursday, finance minister P Chidambaram said the government was confident of achieving "a close-to-9%" growth rate in the current fiscal.

This translates into an almost Rs 1,700 rise in every Indian's annual income. Per capita income, or the income each citizen would receive if national income were equally distributed, grew at 8.1% to Rs 22,553 in 2006-07, from Rs 20,858, in 2005-06.

Chidambaram said despite growing uncertainty and turbulence in global Markets, the Indian Economy was estimated to grow at near-9% in 2007-08, although the government may need to make 'rapid adjustments' in policy, depending upon the global situation. "Which side of 9% it is difficult to say," the minister told reporters. He added that he would be doubly happy if it was to the right side of 9%.

The government's Central Statistical Organisation (CSO) had earlier estimated growth in gross domestic product (GDP)—a measure of overall domestic income—at 9.4% for 2006-07. The upward revision comes as a result of higher growth in the banking & insurance sector at 13.9%, instead of the estimated 10.6%.

CSO has also revised the growth estimate for 2005-06 to 9.4% from 9%. The revised data puts the Economy's average growth rate over the past four years since the UPA government has been in power at 8.8%.

"This shows that since the United Progressive Alliance came to power, there has been an investment boom. People are investing and they have confidence in the future," Chidambaram said. "Domestic investment has been high and foreign direct investment also played its part."

Sector-wise, while growth in manufacturing has slightly eased, construction has improved to 12% from 10.7%.

Pre Session Commentary


The market may head higher due to good rollover in derivatives segment. The January 2008 derivative contracts expired yesterday, 31 January 2008. As per reports, rollover of Nifty futures from January 2008 series to February 2008 series stood at 75% while marketwide rollover was 85%. The rollovers in previous series i.e. from November 2007 to December 2007 for Nifty futures and marketwide rollover were 81% and 85% respectively.

Third quarter December 2007 results so far have been decent. A total of 1815 companies reported 30.60% rise in net profit on 18.80% rise in net sales in Q3 December 2007 over Q3 December 2006.

Asian markets were trading mixed today, 1 February 2008. Hong Kong`s Hang Seng (up 1.27% at 23,753.04), Taiwan`s Taiwan Weighted (up 1.69% at 7,648.41), Singapore`s Straits Times (up 0.46% at 2,995.38), South Korea`s Seoul Composite (up 0.50% at 1,632.98) rose. However, Japan`s Nikkei declined 0.62% at 13,507.80 and Shanghai Composite lost 3.54% to 4,228.05

US markets rallied on Thursday, 31 January 2008, led by financial shares after the world`s largest bond insurer, MBIA announced that it expects to retain its credit ratings. The Dow Jones industrial average surged 207.53 points, or 1.67%, to 12,650.36. The S&P 500 index gained 22.74 points, or 1.68%, to 1,378.55, and the Nasdaq Composite index shot up 40.86 points, or 1.74%, to 2,389.86.

Back home, the 30-share BSE Sensex declined 109.93 points or 0.62% at 17,648.71, on Thursday 31 January 2008 in volatile trade. The broader based S&P CNX Nifty was down 30.15 points or 0.58% at 5,137.45 on Thursday 31 January 2008 in volatile trade.

As per provisional data, foreign institutional investors (FIIs) sold shares worth Rs 3938 crore on Thursday, 31 January 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 2160.05 crore on that day.

FIIs were net buyers of Rs 128 crore in futures & options (F&O) market on Thursday, 31 January 2008. They were net buyers of Rs 399 crore in index options and Rs 743 crore in stock futures but net sellers of Rs 1,014 crore in index futurers.

Meanwhile, as per reports, short selling by the institutional investors may be kicked off a week later than what was earlier scheduled for today, 1 February 2008. Though Securities & Exchange Board of India and stock exchanges are ready for its timely rollout, there seems to be some confusion whether short selling will attract the Securities Transaction Tax (STT) or not. The Central Board of Direct Taxes (CBDT) is yet to clarify on the issue.

Unitech to invest 1 lakh crore


Enthused by its robust financial performance in third quarter, real estate major Unitech on Thursday said it will invest about Rs 1,00,000 crore over the next 7-8 years to develop various properties across the country.

"We have a land bank of over 20,000 acres, but our economic interest is for about 15,000 acres that comprises 675 million sq ft of developable area," Unitech Managing Director Sanjay Chandra told reporters.

He said the existing land bank would get developed over the next seven-eight years.

"The investment for developing 675 million sq ft will be about Rs 1,00,000 crore, including the land cost," Chandra said. It would cost an average of Rs 1,500 to develop per sq ft of area, including land and construction cost, he added.

Unitech already has 60 million sq ft under construction. It plans to develop 48 malls and shopping centres in India at an investment of Rs 20,000 crore in the next six years.

Asked about sources of funding for the massive investment, he said it would be done through a combination of advances from customers against sales, internal accruals and debts.

The company has posted a 39 per cent growth in its consolidated net profit at Rs 525.78 crore for the third quarter of 2007-08. Its turnover rose by 19 per cent at Rs 1,165.11 crore during the review period.

Unitech, India's second largest real estate firm, is also planning to borrow 250 million dollars (about Rs 1,000 crore) in the current quarter to fund its various projects.

On the company's plan for Qualified Institutional Placement (QIP), Chandra said: "We have no intention to raise capital in short term in Unitech Ltd." He added that the company has an enabling approval to raise funds.

Sun TV - what happened here ?


Down about 6% today ...Looks like Derivatives fun

Market will remain volatile


The market is likely to resume on a weak note as Asian indices are down around 1% percent each in morning trades despite firm US market in the overnight trades. Pressure on the liquidity front due to institutional investors remaining net sellers of equities and expectations of decent quarterly earnings could make the investors jittery.

US indices finished firm on Thursday after comments from bond insurer MBIA, with the Dow Jones surging 208 points to close at 15650 while the Nasdaq gained 41 points at 2390.

Indian stocks trading on the US bourses closed on a mixed note. Among the major gainers VSNL rose by 5% and Infosys gained over 3% while Wipro, Tata Motots and HDFC bank gained around 1% each. However, Patni Computer, Dr Reddy's Lab, ICICI Bank and Rediff Computers slipped around 1-5% each.

Crude oil prices in the global market declined yesterday. The Nymex light crude oil for March series slipped by 58 cents at $91.64 per barrel. In the commodity segment, the Comex gold for April delivery moved up $1.70 to settle at $928 an ounce.

Daily Call - Feb 1 2008


Daily Call - Feb 1 2008

Maruti Suzuki, Jyoti Structures


Maruti Suzuki, Jyoti Structures

US Markets end higher


Market makes a major turnaround after initial claims data fuels fresh recession worries

US Market posted strong gains today, Thursday, 31 January, 2008. Market opened lower initially on a disappointing economic report. But some encouraging outlook from bond insurers turned around the investor sentiments and the indices rallied for the rest of the day. All ten economic sectors finished in positive territory. Financial and Discretionary stocks ended the session with the largest gains. But it was the worst January month for the market in eight years.

The Dow Jones industrial Average ended the day with a huge gain of 208 points at 12,650. The Nasdaq Composite Index, finished higher by 41 points at 2,390. S&P 500 finished higher by 23 points at 1,378. Twenty-eight out of thirty Dow stocks ended in the green today. Home-Depot and American Express led the team of Dow winners, each gaining more than 4%.

The Labor Department reported today that the number of Americans filing first-time claims for unemployment benefits rose to a 27-month high. Initial claims for state unemployment benefits rose 69,000 in the week ended 26 January reaching 375,000. It marked the highest level since early October and the biggest weekly jump since September 2005 in the wake of Hurricane Katrina. Dow plunged by more than 150 points after the report.

But then, the turnaround in sentiment came after bond insurer, MBIA offered assurances that it had enough cash to ride out the meltdown in the mortgage market. The company held a four hour analyst meet today, where the chief executive, Gary Dunton, told investors he is confident the company can retain its crucial AAA credit rating and that MBIA will still be able to raise fresh capital.

Google results fall short of expectations

Among economic reports, Dept. of Commerce said December personal income rose 0.5% and spending rose 0.2%, which were mostly in-line with expectations. Market expected income to rise 0.4% and spending to rise 0.1%. The report's price index for personal consumption expenditures, a gauge of inflation closely monitored by the Fed, rose 0.2% in December from November levels. Fourth quarter employment costs rose 0.8%, in-line with expectations.

Indian ADRs ended mixed today. While MTNL was the largest loser, VSNL was the largest gainer, each shedding or winning more than 5%. ICICI Bank and HDFC Bank closed lower by 1.3% and higher by 1.7% respectively.

After today’s close, Google reported its fourth-quarter profit rose 17% though its results fell short of Wall Street's forecasts.

Yesterday, the Federal Open Market Committee decided to cut the fed funds rate 50 basis points to 3% and the discount rate 50 basis points to 3.50%. Last week, Federal Open Market Committee (FOMC) approved a 75 basis point intermeeting cut in the fed funds rate to 3.50%. All these efforts were to save the US economy from plunging deep into a recession.

Market to focus on tomorrow’s unemployment data

Crude prices ended lower for the first time in six days after fresh recession worries once again started bothering investors today. The largest gain in unemployment claims in more than two years imparted a sense of nervousness among investors that economy is indeed in the path of a slowdown. Crude-oil futures for light sweet crude for March delivery today closed at $91.75/barrel (lower by $0.58/barrel or 0.6%) on the New York Mercantile Exchange. Prices are 58% higher than a year ago. Earlier it fell to a low of $89.58/barrel.

On the New York Stock Exchange, almost 2.2 billion shares traded, and for every stock posting declines, three gained. On the Nasdaq, nearly 2.9 billion shares changed hands, with advancing stocks running ahead of those declining more than 2 to 1.

Several important economic reports are due tomorrow. The first among them will be January's unemployment data followed by January's ISM Manufacturing Index. December's Construction Spending and January's Consumer Sentiment are also scheduled for release tomorrow.

Market may move up tracking global cues


The market may head higher tracking firm global markets. The January 2008 derivative contracts expired yesterday, 31 January 2008. As per reports, rollover of Nifty futures from January 2008 series to February 2008 series stood at 75% while marketwide rollover was 85%. The rollovers in previous series ie from November 2007 to December 2007 for Nifty futures and marketwide rollover were 81% and 85% respectively.

Third quarter December 2007 results so far have been decent. A total of 1815 companies reported 30.60% rise in net profit on 18.80% rise in net sales in Q3 December 2007 over Q3 December 2006.

Asian markets were trading mixed today, 1 February 2008. Hong Kong's Hang Seng (up 1.27% at 23,753.04), Taiwan's Taiwan Weighted (up 1.69% at 7,648.41), Singapore's Straits Times (up 0.46% at 2,995.38), South Korea's Seoul Composite (up 0.50% at 1,632.98) rose. However, Japan's Nikkei declined 0.62% at 13,507.80 and Shanghai Composite lost 3.54% to 4,228.05

US markets rallied on Thursday, 31 January 2008, led by financial shares after the world's largest bond insurer, MBIA announced that it expects to retain its credit ratings. The Dow Jones industrial average surged 207.53 points, or 1.67%, to 12,650.36. The S&P 500 index gained 22.74 points, or 1.68%, to 1,378.55, and the Nasdaq Composite index shot up 40.86 points, or 1.74%, to 2,389.86.

Back home, the 30-share BSE Sensex declined 109.93 points or 0.62% at 17,648.71, on Thursday 31 January 2008 in volatile trade. The broader based S&P CNX Nifty was down 30.15 points or 0.58% at 5,137.45 on Thursday 31 January 2008 in volatile trade.

The BSE Sensex has declined 712.95 points or 3.88% at current 17,648.71 from 18361.66 on 25 January 2008. Nifty has lost 245.90 points or 4.56% at current 5,137.45 from 5383.35 on 25 January 2008

As per provisional data, foreign institutional investors (FIIs) sold shares worth Rs 3938 crore on Thursday, 31 January 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 2160.05 crore on that day.

FIIs were net buyers of Rs 128 crore in futures & options (F&O) market on Thursday, 31 January 2008. They were net buyers of Rs 399 crore in index options and Rs 743 crore in stock futures but net sellers of Rs 1,014 crore in index futurers.

Meanwhile, as per reports, short selling by the institutional investors may be kicked off a week later than what was earlier scheduled for today, 1 February 2008. Though Sebi and stock exchanges are ready for its timely rollout, there seems to be some confusion whether short selling will attract the Securities Transaction Tax (STT) or not. The Central Board of Direct Taxes (CBDT) is yet to clarify on the issue.

Morning Call - Feb 1 2008


Market Grape Wine :

In House :

Supp for Nifty exists at 5070 and resis at 5400

F&O: Buy NALCO above 439 with a TGT of 453 and a SL 433

Buy HLL above 209 with a TGT of 218 and a SL of 204

Cash: Buy Ambuja above 120.75 with a TGT of 129 and a SL of 117

Sell Bata below 160 with a TGT of 150 and a SL of 164.50



Out House :

Markets at a support of 17337 & 17557 levels with resistance at 18018 & 17847 levels .

Buy : RIL

Buy : Bharti & INFY

Buy : SBIN & IciciBank

Buy : JPASSO & Praj

Buy : IndiaGlycol & Lupin

Buy : SKumar

Buy : PrimeSec

Dark Horse : IndiaGlycol , LUPIN ,Praj , , IciciBank , IOlBroad , Aban , , RIL , Sbin , & REL

Thank God Its Friday : After a tormenting Jan its Feb new clearing buy stocks with a medium term prespective .

Pre Market Watch - Feb 1 2008


The Indian Market is likely to have a positive opening as the cues from the global markets are in favor. On Thursday, the Indian Market closed in the negative territory for the fourth straight trading session. The market opened on a firm note backed by tracking the interest rate cut of 50 basis point by the US Federal Reserve but all of a sudden lost the momentum takes a U turn to pare all its initial gains. The market manages to recover from the fall towards the mid of he session but lost the grip towards the end of the session to close in red. The Mid Cap and Small Cap also fell as selling was also seen from these baskets. The BSE Sensex closed lower by 109.93 points at 17,648.71 while NSE Nifty fell by 30.15 points to close at 5,137.45. We expect that the market may gain some grounds to some extent during the trading session and the declaration of weekly inflation figure by the government will give further directions to the market.

On Thursday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 207.53 points at 12,650.36. S&P 500 index closed up by 22.74 points at 1,378.55 and NASDAQ grew by 40.86 points to close at 2,389.86

Indian ADRS ended mixed. In technology sector, Infosys grew by (3.76%) along with Wipro by (0.75%) while Patni Computers fell by (0.95%). In banking sector, HDFC bank and ICICI bank grew by (1.70%) and (1.30%) respectively.

The major stock markets in Asia are trading strong. Hang Seng is trading higher by 297.30 points at 23,753.04 along with Taiwan Weighted trading up by 127.28 points at 7,648.41 and Singapore Starit Times trading at 2,995.35 up by 13.63 points.

The FIIs on Thursday stood as net seller in equity. The gross equity purchased was Rs2,913.20 Crore while the gross equity sold stood at Rs3,524.60 Crore. Therefore, the net investment of equity reported was (Rs611.40 Crore).

Today, Nifty has support at 5,053 and resistance at 5,229 and BSE Sensex has support at 17,365 and resistance at 17,991.

Latest Grey Market Premiums - Feb 1 2008


Future Capital Holding 765 300 to 325


Reliance Power 450 140 to 150


Emaar MGF 540 to 630 60 to 70


J. Kumar Infraprojects 110 to 120 Discount


Cords Cable Ind. 125 to 135 7 to 9


KNR Construction 170 Discount


Onmobile Global 425 to 450 20 to 25


Bang Overseas 200 to 207 30 to 33


Shriram EPC 290 to 330 20 to 25


IRB Infrastructure Developers 185 to 220 60 to 70

Long Term Recommendations - Feb 1 2008


Genus Power

Idea Cellular

HDFC

HCL Tech

GSK Consumer

The recommendations are for long-term purpose and one should hold on to these scrips for at least six months to earn reasonable returns.

Listing gains…the Future is here!


He who has the pepper may season as he lists.

The market more or less resembles the popular Big Bazaar sale where huge discounts are offered. Future Capital, ( where Big Bazaar’s Kishore Biyani is also promoter) lists today. It’s one of huge IPOs along with Reliance Power which saw an overwhelming response, so much so that the issue dried up liquidity to some extent.

Despite a very smart recovery in the US markets, the excitement doesn’t seem to continue in the Asian markets. At a time when some IPOs have lowered their price bands, the grey market premium for Future Capital remained more or less steady. Many of the weak hands had their cheques bounced off. So a bright start awaits Future Capital. Can it improve the mood on the street? A day’s gain if it happens need not get you over excited. Leaving fundamentals and reasoning aside, the hope is there could be a turnaround before Reliance Power opens.
Today, we expect another lackluster opening, with global markets throwing up mixed cues.

Fears of a recession in the US have taken a heavy toll on equity markets across the globe. Even the aggressive rate cuts by the Federal Reserve and a stimulus package by the Bush government have been unable to ease the tension. Some concerns have also emerged on the economic outlook of countries such as Japan, the UK, Europe and China. At the same time, prices of various commodities remain quite high, leading to a unique situation that central bankers across the world may find difficult to tackle.

Here in India, things are not looking all that bad. The Government has actually revised upwards the GDP growth for FY07, from 9.4% to 9.6%. Economic growth is likely to be around 8.5-9% this year and the next. This is not bad considering the global outlook and the turmoil in the financial markets. So, the message is clear that India's long-term fundamentals are still in tact, and those who believe in the same should not be too perturbed by the recent upheavals.

Still, one cannot ignore market sentiment, which has taken a real pounding of late. Yesterday's F&O expiry too reveals that investors are bearish as of now, with Nifty rollover down from last month. Also, the open interest in February futures went up by more than 1 crore shares and the contract shut shop at a huge discount to the spot. According to reports, majority of the rolled over as well as fresh positions are on the short side. This shows the extreme lack of confidence among investors.

Herein lies the big problem, and unless there is a significant improvement on this front, the market will continue to struggle. The next big event will be the budget, which is expected to be a mix of populism and some pragmatism. But again, all the positive aspects about the economy are already known. What the market really is looking for is renewed buying from FIIs, who have pulled out around US$4bn in January alone.

Shares of Future Capital Holding will get listed today. The issue was subscribed by almost 133 times. The issue has been priced at Rs765 per share. The premium in the grey market is around Rs350-400. Meanwhile, the grey market for Reliance Power issue is now down to Rs150. The shares of the ADAG company are expected to list on Feb. 5. Reliance Power has fixed the issue price at Rs450.

Wockhardt Hospitals IPO did not open yesterday as the company didn't have the requisite permission from SEBI after cutting its price band. It will open today. Its revised price band is Rs225-260 and the issue will close on Feb. 5. Real estate major Emaar MGF has also slashed its IPO price band, from Rs610-690, to Rs540-630. This issue also opens today and will close on Feb. 6.

The sudden and swift correction in the secondary market has hit the primary market hard. IPOs, especially that of smaller, relatively unknown companies, struggling to find buyers amid lack of investor confidence. Wockhardt Hospitals and Emaar MGF have already trimmed their price bands, while grey market premium on Reliance Power has dropped sharply. The situation may prevail as long as the secondary market remains subdued.

Steel shares could gain amid reports of a price hike and auto stocks will be in focus as companies will report monthly sales volume. Banking and housing finance could attract some attention amid news that HDFC has slashed its PLR by 25 basis points.

US stocks rallied on Thursday, ending a miserable January on a high note, after bond insurer MBIA reassured Wall Street that it will be able to retain its AAA rating. Benchmark indexes rebounded from losses after MBIA CEO Gary Dunton's comments sparked a rally in bank shares.

Home Depot helped lead the Dow Jones Industrial Average to a 208-point gain after Deutsche Bank said shoppers will spend more as interest rates fall and the government mails out tax rebates. Pulte Homes pushed builders to a four-month high after forecasting a narrower loss than analysts estimated.

The S&P 500 added 22.69 points, or 1.7%, to 1,378.5, reversing an earlier 1.6% drop spurred by a steeper-than- forecast increase in jobless claims. The Dow gained 1.7% to 12,650.36. The Nasdaq Composite Index climbed 40.86, or 1.7%, to 2,389.86.

Market breadth was positive. Four stocks rose for every one that fell on the New York Stock Exchange.

US stocks suffered heavily last month on fears that the world's biggest economy is in a recession or is heading toward one amid the housing and credit market rout. The Nasdaq's January loss of 9.9% is the worst January on record for the tech index, going back to its inception in Feb. 1971. The Dow lost 4.6% in the month, its worst January since 2000, when it lost almost 4.9%. The S&P 500 lost 6.1%, its worst Jan. since 1990, when it fell 6.9%.

After the close, Google reported quarterly sales and earnings that were short of forecasts, sending its shares tumbling in extended-hours trading. Motorola shares rallied after the close after the company said it is thinking of spinning off its mobile unit. Friday brings the January employment report before the start of trading. The ISM Manufacturing Index is due, as well as the readings on consumer sentiment and construction orders. Exxon Mobil leads the list of companies expected to report earnings.

MBIA's big quarterly loss exacerbated worries that the fallout for bond insurers could be the next leg of the credit market crisis. But MBIA stock erased losses and turned higher after the company's CEO said that while it will see big losses this year, it has the resources it needs to maintain its current financial strength rating.

Treasury prices rallied, lowering the yield on the 10-year note to 3.59% from 3.68% late on Wednesday. In currency trading, the dollar gained modestly versus the yen and slipped versus the euro. US light crude oil for March delivery fell 58 cents to settle at $91.75 a barrel in New York. COMEX gold for April delivery rose $1.70 to $928 an ounce.

European shares finished virtually flat as strength in the mining and chemicals sectors helped offset sharp losses in financial stocks. The pan-European Dow Jones Stoxx 600 index closed virtually unchanged at 322.16. It was down more than 2% earlier on Thursday.

The UK's FTSE 100 reversed earlier losses to close up 0.7% at 5,879.80, helped by an 8% jump in shares of Carphone Warehouse on speculation that Best Buy may increase its shareholding in the mobile phone retailer. The German DAX 30 fell 0.3% to 6,851.75 and the French CAC-40 slipped 0.1% to 4,869.79.

In the emerging markets, the Bovespa in Brazil dropped 1.3% to 59,490 while the IPC index in Mexico rose 1.8% to 28,793. The RTS index in Russia slid 3.8% to 1906 and the ISE National-30 index in Turkey slumped 3.9% to 53,434.

Global cues hold the key

Finally the worst series for nifty came to an end with the index losing over 15.5% during the series. A highly volatile last session of the month ended almost on a flat note but with a negative bias. Markets extended its losing streak to fourth straight trading session with benchmark Sensex closing below the 18k mark for second straight day. Even the Fed decision to slash rates by 50 basis points was unable to cheer up the bulls as selling pressure was evident in the Realty, Banking and Power stocks. Finally, the 30-share Sensex closed at 17,648, losing 109 points. The NSE Nifty slipped 30 points to close at 5,137.

Hindalco further dropped by over 7% to Rs163 after the company earnings fell for the first time in two years. Net income dropped to Rs5.43bn in the quarter ended Dec. 31 from Rs6.44bn a year earlier. Sales fell 3% to Rs45.3bn. The scrip touched an intra-day high of Rs176 and a low of Rs155 and recorded volumes of over 58,00,000 shares on NSE.

L&T slipped 1.6% to Rs3646. The company announced its plans to start an asset management company. The company also plans to enter into an agreement with US based Travelers as its joint venture partner for its non-life insurance venture, according to reports. The scrip touched an intra-day high of Rs3754 and a low of Rs3600 and recorded volumes of over 12,00,000 shares on NSE.

HCL Infosystems was down 0.2% to Rs200. The company announced that it entered in strategic partnership with government of Punjab. The scrip touched an intra-day high of Rs219 and a low of Rs193 and recorded volumes of over 4,000 shares on NSE.

Tata Chemicals advanced by over 7% to Rs307. The company declared that it entered into an agreement to acquire General Chemical Industrial Products Inc. (GCIP), a US based chemical Company for US$1005mn. The scrip touched an intra-day high of Rs344 and a low of Rs295 and recorded volumes of over 14,00,000 shares on NSE.

Mphasis BFL marginally slipped by 2.7% to Rs225. The company posted net profit of Rs658.60mn, a jump of 153% for the quarter ended December 31, 2007 as compared to Rs259.50mn for the quarter ended December 31, 2006. The total income has gone up from Rs2737.70mn for the quarter ended December 31, 2006 to Rs4470.90mn for the quarter ended December 31, 2007. The scrip touched an intra-day high of Rs244 and a low of Rs214 and recorded volumes of over 2,00,000 shares on NSE.

Power Grid lost over 6.5% to Rs102. The company posted net profit of Rs3842.80mn, an increase of 14% for the quarter ended December 31, 2007 as compared to Rs3372.70mn for the quarter ended December 31, 2006. Total Income increased from Rs10048mn for the quarter ended December 31, 2006 to Rs11937.70mn for the quarter ended December 31, 2007. The scrip touched an intra-day high of Rs110 and a low of Rs101 and recorded volumes of over 2,00,00,000 shares on NSE.

SAIL was down by 2% to Rs214. The company signed a memorandum of understanding with Ranchi-based Heavy Engineering Corporation (HEC), the largest integrated engineering complex in the country, for supply of equipment for its ongoing modernisation & expansion programme. The scrip touched an intra-day high of Rs226 and a low of Rs211 and recorded volumes of over 8,00,000 shares on NSE.

Indraprastha Gas rallied by over 9% to Rs130 after the company announced its Q3 result with net profit at Rs450.2mn (up 27%) and net sales at Rs1.83bn (up 14.3%). The scrip touched an intra-day high of Rs135 and a low of Rs118 and recorded volumes of over 5,00,000 shares on NSE.

IOC surged by over 5% to Rs476 after the company announced its Q3 result with net profit at Rs20.9bn (up 17%) and revenue at Rs654bn (up 16%). The scrip touched an intra-day high of Rs499 and a low of Rs449 and recorded volumes of over 22,00,000 shares on NSE.

CESC came down 1% to Rs495. The company announced its Q3 net profit at Rs930mn (up 52.4%) and revenue at Rs7.03bn (up 6.14%). The scrip touched an intra-day high of Rs520 and a low of Rs481 and recorded volumes of over 5,00,000 shares on NSE.

Gitanjali Gems slipped 5% to Rs297. The company announced its Q3 FY08 performance overview as compared to Q3 FY07, net revenues were up 56.7% to Rs12,527.2mn from Rs7,995.0mn and PAT increases 61.1% to Rs505.2mn from Rs313.6mn. The scrip touched an intra-day high of Rs314 and a low of Rs290 and recorded volumes of over 4,00,000 shares on NSE.

FIIs were net sellers of Rs39.38bn (provisional) in the cash segment on Thursday. On the other hand, Domestic Institutions were net buyers of Rs21.6bn. In the F&O segment, foreign funds were net buyers of Rs1.28bn.

FIIs were net sellers of Rs6.11bn in the cash segment on Wednesday, taking their net outflows over the past 11 days to over US$4bn. Mutual Funds were net buyers of Rs4.16bn on the same day.

News Snippets:

Emaar MGF lowers price band of its IPO. (Mint)

Jaypee Group to bid for Greater Noida airport. (Mint)

Unitech in talks with two foreign telecom companies for mobile services. (Mint)

Tata Chemicals to buy US soda ash maker, General Chemical Industrial Products for US$1bn. (Mint)

Future Capital’s logistics fund slated for launch in March 2008. (Mint)

Videocon Industries is venturing into business of building and operating ports; bids for container terminal at Kerala port. (Mint)

IOC may get lower stake in Turkey refinery. (Mint)

Punjab government appoints Power Finance Corporation to help bid out a 2,000MW project using ultra mega power project model. (Mint)

HDFC cuts home loan rates by 25bps. (Mint)

GSK Consumer Healthcare plans to launch some of its global brands in India. (BL)

VSNL to start Wimax in 12 cities in 2009. (BL)

Puravankara plans to invest Rs10bn for setting up 4-5 hotels. (BL)

GMR Industries plans to raise Rs2.5bn through rights issue. (BL)

ONGC may give up two CBM blocks in the western region. (BL)

Lufthansa in talks with Jet Airways and Quikjet for cargo operations. (BS)

7:3 swap fixed for Kingfisher-Deccan merger. (BS)
Maruti Suzuki to increase price of all models by up to Rs12,000 wef February 2008. (BS)

Rajesh Exports bags Rs4,630mn export order of gold jewellery from Excel Goldsmiths. (BS)

JSW Steel and Chilean form JV to develop iron ore mines in South America including Chile. (BS)

Cairn sees 25% more oil output from Mangala field in Rajasthan. (BS)

Bajaj Auto to use its reserves to fund aggressive expansion and diversification plans. (ET)

Dabur Pharma secured approval from the Drug Controller General of India (DCGI) for its anti cancer drug Nanoxel. (ET)

TCS’ UK subsidiary Diligenta wins US$200mn order from Sun Life Financials, Canada. (ET)

SBI plans to add 500,000 Point of sale (POS) terminals in country in three years. (ET)

PNB launches a full fledged banking branch in Hong Kong. (FE)

Madras Cement approved proposal of buy back its own shares with a maximum price of Rs4,200 a share. (FE)

SAIL, Manganese Ores India Ltd (MOIL) to set up Ferro Alloy project in Bhilai in Chattisgrah. (FE)

Economic Front Page

Railways to issue Rs250bn tender for buying 1,000 electric locomotives over eight years. (Mint)

Sebi allows foreign funds to buy more debt. (Mint)

Government defers fuel price hike decision again. (Mint)

ATF prices decline, however airlines plan no rate cuts. (BL)

Lenders of securities under short selling to be exempted from STT. (ET)

Short selling could begin in the first week of February. (ET)

SEBI raises FII investment in government securities from US$2.6bn to US$3.2bn. (ET)

Finance Minister revises estimates to 9% growth rate this fiscal year. (FE)

Fertilizer subsidy may be restructured to maintain fiscal prudent. (FE)

RBI asks banks to adopt novel model in future to assess the credit risk. (FE)

Market Outlook - Feb 1 2008


Market Outlook - Feb 1 2008

Bang Overseas Allotment - Subscription Details


Sr.No. Category

No. of times of total meant for the category
1 Qualified Institutional Buyers (QIBs)

1.1412
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

1.8055
2(a) Corporates


2(b) Individuals (Other than RIIs)


2(c) Others


3 Retail Individual Investors (RIIs)

1.1712
3(a) Cut Off


3(b) Price Bids


4 Employee Reservation

1.0146
4(a) Cut Off


4(b) Price Bids


Gold registers good gain for the month


Gold registers highest monthly gain in almost two years

It was strongest monthly gain for gold after gold prices rose to new high today, Thursday, 31 January, 2008. Gold and silver prices had rebounded in the after hours trading following interest rate cut from Federal Reserve yesterday. The dollar weakened as usual boosting the appeal of the precious metal as an alternative investment. Silver prices also ended considerably higher for the day.

Gold generally moves in the opposite direction of the U.S. currency. Gold, as a dollar-denominated commodity, suffers from dollar strength. The dollar is down 1.8% in January against a weighted basket of six major currencies.

Comex Gold for April delivery rose $1.7 (0.2%) to close at $928 an ounce on the New York Mercantile Exchange. Yesterday prices had hit a high of $941 in the after hours trading. Yesterday, before the Fed announcement, the contract fell $4.50 to close at $926.30. This year, prices have gained 11% till date, the highest monthly gain since April 2006.

Comex Silver futures for March today rose 23.5 cents (1.4%) to $16.995 an ounce. Silver has gained 14% in 2008. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.

Yesterday, the Federal Reserve lowered interest rates 0.5% point to 3% today. This was after the 75 bps rate cut to 3.5% that Fed did last week. The interest rate cuts are 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 erased losses against the yen and maintained its early gain against the euro Thursday. However, the dollar index, which tracks the performance of the greenback against six other major currencies, was at 75.332, down from 75.499.

In the energy market today, crude oil fell on concern that the U.S. is on the verge of a recession. Crude oil for March delivery fell 58 cents (0.6%) to settle at $91.75 a barrel.

Gold had climbed 31% ($200/ounce) 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 higher by Rs 45 (0.4%) at Rs 11,707 per 10 grams. Prices rose to a high of Rs 11,748 per 10 grams and fell to a low of Rs 11,655 per 10 grams during the day’s trading.

At the MCX, silver prices for March delivery closed Rs 261 (1.2%) higher at Rs 21,676/Kg. Prices opened at Rs 21,438/kg and went to a high of Rs 21,770/Kg during the day’s trading.