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Wednesday, February 13, 2008
Midcapmania Multibaggers - Feb 13 2008
Buy Balrampur Chini @ 76 for a target of 150 in 6-9 months. ( Sugar prices expected to firm up coming quaters. Good results expected going forward. FII's holding more than 32%.)
by Uttam Saraf
Disclaimer - These recommendations are not given by DP. Do your own research before buying
NSE Bulk Deal Watch - Feb 13 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,ABHISHEK RATHORE,BUY,95884,138.58,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,AMBIT SECURITIES BROKING PVT. LTD.,BUY,76857,139.75,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,BUY,51447,148.32,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,166049,138.29,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,B K SHAH AND CO,BUY,148833,140.76,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,CHOKHANI SECURITIES LTD,BUY,89396,136.30,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,CPR CAPITAL SERVICES LTD.,BUY,272268,136.71,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,CREDENTIAL STOCK BROKERS LIMITED,BUY,79465,139.16,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,DINESH MUNJAL,BUY,108496,139.85,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,DYNAMIC STCOK BROKING (I) PVT LTD,BUY,71495,144.51,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,G RAMAKRISHNA,BUY,70415,137.40,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,HARBUX SINGH SIDHU,BUY,166599,138.29,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,KHANDWALA TRADELINK CO,BUY,70814,138.63,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,73886,143.84,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,MADHAV STOCK VISION (P) LTD.,BUY,122990,137.25,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,MUKESH BHAGAT,BUY,76513,136.21,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,NAMAN SECURITIES & FINANCE PVT LTD,BUY,76441,136.42,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,PACE FINCAP PRIVATE LIMITED,BUY,81325,136.12,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,PRASHANT JAYANTILAL PATEL,BUY,198167,137.80,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,R APPALA RAJU,BUY,93000,136.28,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,R.M. SHARE TRADING PVT LTD,BUY,197343,137.49,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,RADHIKA DIPAN MEHTA,BUY,176613,137.58,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,SANJAY BHANWARLAL JAIN,BUY,105517,138.45,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,SHAH HEMANG DINESH,BUY,114817,143.39,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,SUBHKAM STOCKS & SHARES LTD,BUY,100000,138.71,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,TRANSGLOBAL SECURITIES LTD.,BUY,115033,137.68,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,VELBAI KHIMJI CHHEDA,BUY,78006,139.53,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,YES INVESTMENTS VISHAL KISHORE BHATIA,BUY,60000,136.73,-
13-FEB-2008,HINDDORROL,Hindustan Dorr-Oliver Ltd,KARAN G MEHTA,BUY,270000,124.00,-
13-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ABHISHEK RATHORE,BUY,145953,107.37,-
13-FEB-2008,JKIL,J.Kumar Infraprojects Lim,MANISH VRAJLAL SARVAIYA,BUY,110114,109.59,-
13-FEB-2008,JKIL,J.Kumar Infraprojects Lim,SHRI BRIJ SECURITIES PVT.LTD.,BUY,137228,105.43,-
13-FEB-2008,PRITHVI,Prithvi Information Solut,CHANDRA FINANCIAL SERVICES PVT LTD,BUY,100000,264.93,-
13-FEB-2008,PRITHVI,Prithvi Information Solut,PEGASUS STOCKS AND SHARES PVT LTD,BUY,1604,262.57,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,ABHISHEK RATHORE,SELL,95884,137.76,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,AMBIT SECURITIES BROKING PVT. LTD.,SELL,76857,139.27,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,SELL,87447,138.09,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,166049,139.08,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,B K SHAH AND CO,SELL,148855,139.79,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,CHOKHANI SECURITIES LTD,SELL,89396,136.72,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,CPR CAPITAL SERVICES LTD.,SELL,272268,136.93,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,CREDENTIAL STOCK BROKERS LIMITED,SELL,79465,139.39,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,DINESH MUNJAL,SELL,108496,139.53,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,DYNAMIC STCOK BROKING (I) PVT LTD,SELL,70695,143.35,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,G RAMAKRISHNA,SELL,70415,137.89,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,HARBUX SINGH SIDHU,SELL,166599,138.32,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,KHANDWALA TRADELINK CO,SELL,70814,137.84,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,73886,144.47,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,MADHAV STOCK VISION (P) LTD.,SELL,122990,137.13,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,MUKESH BHAGAT,SELL,76513,136.39,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,NAMAN SECURITIES & FINANCE PVT LTD,SELL,74941,136.47,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,PACE FINCAP PRIVATE LIMITED,SELL,81325,137.21,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,PRASHANT JAYANTILAL PATEL,SELL,198167,138.81,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,R APPALA RAJU,SELL,93000,136.97,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,R.M. SHARE TRADING PVT LTD,SELL,197343,137.94,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,RADHIKA DIPAN MEHTA,SELL,178613,137.45,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,SANJAY BHANWARLAL JAIN,SELL,105517,138.83,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,SHAH HEMANG DINESH,SELL,114817,144.16,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,SUBHKAM STOCKS & SHARES LTD,SELL,7399,142.52,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,TRANSGLOBAL SECURITIES LTD.,SELL,115033,137.60,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,ULTRA INDIA (MAURITIUS) LIMITED,SELL,71771,134.26,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,VELBAI KHIMJI CHHEDA,SELL,78006,139.30,-
13-FEB-2008,CORDSCABLE,Cords Cable Industries Li,YES INVESTMENTS VISHAL KISHORE BHATIA,SELL,60000,137.80,-
13-FEB-2008,HINDDORROL,Hindustan Dorr-Oliver Ltd,ANJANA PROJECTS LTD,SELL,270000,124.00,-
13-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ABHISHEK RATHORE,SELL,145953,107.33,-
13-FEB-2008,JKIL,J.Kumar Infraprojects Lim,MANISH VRAJLAL SARVAIYA,SELL,110114,109.90,-
13-FEB-2008,JKIL,J.Kumar Infraprojects Lim,SHRI BRIJ SECURITIES PVT.LTD.,SELL,137228,105.41,-
13-FEB-2008,PRITHVI,Prithvi Information Solut,PEGASUS STOCKS AND SHARES PVT LTD,SELL,99594,264.95,-
13-FEB-2008,SASKEN,Sasken Commu Techno Ltd,FID FUND (MAURITIUS) LIMITED,SELL,150000,125.56,-
BSE Bulk Deals to Watch -Feb 13 2008
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
13/2/2008 530043 ACKNIT IND DILIP SHAH B 20000 38.90
13/2/2008 530043 ACKNIT IND DILIP SHAH S 20000 36.40
13/2/2008 505506 AXON INFOTEC ANMOL FINANCE COMPANY B 13918 48.83
13/2/2008 505506 AXON INFOTEC V R P FINANCIAL SERVICES PVT LTD B 27598 49.11
13/2/2008 505506 AXON INFOTEC SANTOSH KUMAR KEJRIWAL SECURITIES PRIVATE LIMITED S 25000 49.00
13/2/2008 531358 CHOIC INTERN HEMLATA K PODDAR B 50000 12.00
13/2/2008 531358 CHOIC INTERN SHYAMCHANDRA H SHARMA B 25100 11.94
13/2/2008 531358 CHOIC INTERN BIKRAM K MOHANTY B 25100 11.94
13/2/2008 531358 CHOIC INTERN EXPLICIT FINANCE LTD S 34397 11.94
13/2/2008 532941 CORDS CABLE PACE FINCAP PRIVATE LIMITED B 100478 136.67
13/2/2008 532941 CORDS CABLE R M SHARES TRADING PVT LTD B 193726 137.68
13/2/2008 532941 CORDS CABLE B K SHAH AND CO B 101279 137.95
13/2/2008 532941 CORDS CABLE AMIT M GALA B 102890 135.43
13/2/2008 532941 CORDS CABLE H.J.SECURITIES PVT.LTD. B 172698 140.32
13/2/2008 532941 CORDS CABLE PACE FINCAP PRIVATE LIMITED S 100478 136.07
13/2/2008 532941 CORDS CABLE R M SHARES TRADING PVT LTD S 193726 137.47
13/2/2008 532941 CORDS CABLE B K SHAH AND CO S 99253 138.11
13/2/2008 532941 CORDS CABLE AMIT M GALA S 102890 136.67
13/2/2008 532941 CORDS CABLE H.J.SECURITIES PVT.LTD. S 172698 140.25
13/2/2008 532941 CORDS CABLE INDIA DIVERSIFIED MAU LTD S 90000 129.65
13/2/2008 517973 DMC INTER IFL PROMOTERS LTD S 30000 21.05
13/2/2008 531739 GENNEX LAB GANESH VISUAL AID PRIVATE LTD B 150000 36.88
13/2/2008 531739 GENNEX LAB SUKHDEV SINGH S 118532 37.00
13/2/2008 532940 J KUMAR INFR SHRI BRIJ SECURITIES PVT LTD B 155273 105.43
13/2/2008 531784 KADAMB CONST BANSAL VINIMOY PVT.LTD B 34222 37.35
13/2/2008 504269 KHAITAN ELCT ACCORD CAPITAL MARKRTS LTD S 100000 55.50
13/2/2008 524280 KOPRAN LTD. FAMY STERI PVT LTD B 1470000 23.50
13/2/2008 524280 KOPRAN LTD. SANGUINITY TRADING CO PVT LTD S 1470000 23.50
13/2/2008 531540 MARUTI INFRA KETAN RAJNIKANT SHAH S 26000 8.30
13/2/2008 500384 RPG LIFE SCI MANJU YOGENDRAKUMAR GUPTA S 85000 55.71
13/2/2008 531866 SUBHKAM CAP SUBHKAM STOCKS B 25000 1139.50
13/2/2008 531866 SUBHKAM CAP RAKESH S. KATHOTIA S 25000 1139.50
13/2/2008 519228 TEMPT.FOODS EVERSIGHT TRADECOMM PVT LTD S 230876 175.09
12/2/2008 531358 CHOIC INTERN CHOTHMAL DOONGERMAL PATODIA HUF B 30000 12.54
12/2/2008 532940 J KUMAR INFR MATRIX EQUITRADE PVT LTD B 2250361 100.65
12/2/2008 532940 J KUMAR INFR CHIMANLAL MANEKLAL SEC.PVT.LTD B 264525 96.19
12/2/2008 532940 J KUMAR INFR MATRIX EQUITRADE PVT LTD S 2250361 100.61
12/2/2008 532940 J KUMAR INFR CHIMANLAL MANEKLAL SEC.PVT.LTD S 264525 96.06
12/2/2008 512048 SPLASH MEDIA PACIFIC CORPORATE SERVICES LIMITED B 7000 101.00
Post Market Commentary - Feb 13 2008
The Indian market closed on an upbeat note backed by heavy buying across the sectoral indices scrips. The market opened with a bang taking the favoring cues from the global markets. The market pared some of its early gains towards the mid session but again gained the momentum towards the final trading hours of the session. The Small Caps remained out of favor as they reported most selling across the counters. The large Caps breached the five-day losing trend to close with hand some gains. From te sectoral front, Metal, Realty, Oil & Gas and Bankex remained the centre of attraction as most buying was seen from these baskets. The BSE Sensex closed higher by 341.13 points at 16,949.14 and NSE Nifty grew by 91.2 points to close at 4,929.45. The BSE Mid Cap closed up by 17.15 points at 7,075.53 while BSE Small Cap indices closed lower by 123.98 points at 9,049.70.
BSE Metal index surged 501.26 points to close at 14,774.31 as Tata Steel 6.72%, SAIL 5.95%, Jindal Steel 5.28%, Gujarat NRE 4.49%, Sterlite Inds 4.46% and Bhushan Steel 4.35% closed higher.
BSE Realty index grew by 386.05 points to close at 9,428.89 as Unitech (14.52%), HDIL (5.57%), Ansal Infra (4.45%), Purvankara (3.14%), Anant Raj (3.01%), Penland (2.02%) closed in green.
BSE Bankex index closed higher by 275.71 points at 10,143.07. Gainers are BOB 6.59%, BOI 5.70%, HDFC bank 4.87%, Cent BOP 3.99%, ICICI bank 3.34%, Kotak bank 3.03%, SBI 2.89%.
BSE CG grew by 268.60 points to close at 15,141.81. Gainers are Thermax Ltd (10.17%), Kirloskar BR (8.30%), BHEL (5.52%), Suzlon Energy (4.62%0, Alstom Projects (3.63%), AIA Engineering (3.44%).
BSE Oil & Gas index advanced by 250.66 points to close at 10,176.98. Scrips that gained are Essar Oil (12.63%), Aban Offshore (3.18%), Cairn India (2.73%), Reliance Inds (2.70%) and Gail India (2.02%).
BSE IT index closed up by 17.91 points at 3,807.89 as Rolta India (5.93%), Satyam Comp (2.82%), HCL Tech (0.88%), TCS (0.48%), Infosys (0.24%), Tech Mahindra (0.24%).
Buoyancy lifts Sensex to close at 16,949
The markets opened with an impressive gap up today tracking favorable cues from global markets. Good amount of buying in realty, metal, FMCG and banking space also helped the Sensex touch the day's high of 17,141 by mid-morning trades. However, sentiment remained buoyant for better part of the session, though selling in consumer durables, pharma and technology counters saw the Sensex give up its early gains to touch the day's low of 16,726, up 118 points its previous close. While the market moved between 16,700-16,900 range, the Sensex witnessed hectic buying activity in the last hour of the trading session and rallied sharply to close with a gain of 341 points at 16,949. The Nifty, too, after a mixed outing, moved up 91 points to close at 4,929.
The market breadth was negative. Of the 2,742 scrips that traded on the Bombay Stock Exchange (BSE), 1,940 stocks declined, 768 stocks advanced and 34 stocks ended unchanged. Most of the sectoral indices ended in positive territory. The BSE Realty index surged 4.27% at 9,429, the BSE Metal index added 3.26% at 2,101, while the BSE Bankex index, the BSE Oil & Gas index and the BSE Power index gained over 2% each.
Buying was led by Tata Steel, which notched up gains of 6.72% at Rs758. Among the other gainers ITC advanced 5.98% at Rs196, BHEL added 5.52% at Rs1,982, HDFC Bank moved up 4.87% at Rs1,467, HDFC jumped by 3.91% at Rs2,725, ACC gained 3.72% at Rs745 and ICICI Bank was up 3.34% at Rs1,099. However, Cipla, Reliance Communications, Wipro, Bajaj Auto and Hindalco were down over 1-3%, while M&M and HLL closed with marginal losses.
Over 2.72 crore RNRL shares changed hands on the BSE followed by JP Associates (1.59 crore shares), Reliance Power (1.51 crore shares) and Reliance Petroleum (1.51 crore shares).
Reliance Power was the most actively traded counter on the BSE with a turnover of Rs531 crore followed by JP Associates (Rs429 crore), Reliance Industries (Rs349 crore), RNRL (Rs320 crore) and Tata Investment Corporation (Rs300 crore).
Sensex spurts 341 points; banking, metal at the fore
Positive global cues and some hectic buying in large-caps assisted the Indian market breach five-day losing streak. The indices spurted in the initial trade but profit booking at higher levels pulled the market in the afternoon trade. But relentless buying in the large-caps in the last hour of trade led the indices end on a firm note.
Banking, realty and metal stocks were in the demand. 23 out of 30 stocks from the Sensex pack gained. The market breadth, which was positive in early trade, turned extremely weak as small and mid-cap shares came under selling pressure.
European markets, which opened after Indian markets, were trading in the red. Asian markets, which opened before Indian markets, finished on a mixed note.
The 30-share BSE Sensex rose 341.13 points or 2.05% at 16,949.14. Sensex gained 533.05 points at the day's high of 17,141.06, hit in the mid-morning trade.
The broader CNX S&P Nifty rose 91.20 points or 1.88% at 4929.45.
The BSE Mid-Cap index rose 0.24% at 7,075.53, while the BSE Small-Cap slipped 1.35% at 9,049.70. Both these indices underperformed the Sensex.
The market breadth was extremely weak: On BSE 769 stocks advanced as compared to 1940 that declined. 33 stocks remained unchanged.
BSE clocked a turnover of Rs 5,647 crore compared to Tuesday (12 February 2008)'s Rs 5,499.03 crore.
The Nifty February 2008 futures settled at 4908.90, at a discount of 20.55 points as compared to the spot closing of 4929.45.
The NSE's futures & options (F&O) segment turnover was Rs 37555.25 crore, which was higher than Rs 36223.50 crore on Tuesday, 12 February 2008.
Among the Sensex gainers, Tata Steel soared 6.72% to Rs 758.20, ITC jumped 5.98% to Rs 195.85, Bharat Heavy Electricals gained 5.52% to Rs 1981.75, HDFC Bank climbed 4.87% to Rs 14673.05 and Housing Development Finance Corporation rose 3.91% to Rs 2724.95.
Among the Sensex losers, Cipla slipped 3.70% to Rs 179.45, Reliance Communication skid 3.07% to Rs 558.05, Wipro shed 2.81% to Rs 409.95, Bajaj Auto fell 2.37% to Rs 2022.20 and Hindalco Industries fell 1.28% to Rs 149.95.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 2.70% at Rs 2386.90. The company said it has discovered gas in a deepwater block in the Krishna basin. The block KG-DWN-2003/1 covers an area of 3,288 square kilometres. RIL holds 90% participating interest (PI) and Hardy Exploration and Production India Inc holds balance 10% in the block.
Hindustan Unilever rose 0.18% to Rs 194.05, off its day's low of Rs 190. The company reported 23.53% rise in net profit to Rs 6314.40 crore on 17.90% rise in total income to Rs 3847.10 crore in Q4 December 2007 over Q4 December 2006. The results were announced during trading hours today, 13 February 2008.
The BSE Realty index rose 4.27% to 9,428.89. Unitech spurted 14.52% to Rs 354.45, Housing Development and Infrastructure jumped 5.57% to Rs 812.55, Ansal properties & Infrastructure climbed 4.45% to Rs 197 and DLF rose 2.79% to Rs 815.
The BSE Metal index rose 3.51% to 14,774.31. Steel Authority of India jumped 5.95% to Rs 198.70, Jindal Steel & Power climbed 5.28% to Rs 2,137.90, Gujarat NRE Coke flared up 4.49% to Rs 119.80, Sterlite Industries gained 4.46% to Rs 737.90 and Bhushan Steel rose 4.35% to Rs 951.95.
The BSE Bankex rose 2.79% to 10,143.07. India’s largest private sector bank by assets ICICI Bank rose 3.34% to Rs 1099.25. Bank of Baroda spurted 6.59% to Rs 385.50, Bank of India jumped 5.70% to Rs 365.45, Kotak Mahindra Bank flared up 3.03% to Rs 843.35 and State Bank of India gained 2.89% to Rs 2,116.95.
Private sector lender Centurion Bank of Punjab jumped 3.99% to Rs 48.20. The bank is reportedly in talks with financial institutions and large banks for a possible merger. New generation banks like ICICI Bank and HDFC Bank are also believed to be interested, reports added.
The BSE Power index rose 2.42% to 3,448.58. Suzlon Energy jumped 4.62% to Rs 313.60, CESC climbed 4.61% to Rs 502.80, Tata Power rose 2.67% to Rs 1,213.65, Torrent Power gained 1.98% to Rs 136.50 and Reliance Energy rose 1.46% to Rs 1,558.10.
Cords Cable Industries settled at Rs 138.30 on BSE, a premium of 2.44% as compared to issue price of Rs 135. The stock debuted at Rs 130 on BSE, a discount of 3.70% over the IPO price.
Diversified firm Jaiprakash Associates tumbled 12.04% to Rs 265.25 on BSE on huge volumes of 1.59 crore shares. The stock slumped on media reports that 45% stake of Jaiprakash Infratech (JP Infra) will be transferred to a separate subsidiary. However, the company clarified that the entire shareholding of JP Infra is held by JP Associates. The company has no plans to transfer stake to any other company and JP Infra will remain a 100% subsidiary of Jaiprakash Associates.
Anil Dhirubhai Ambani Group firm Reliance Power fell 0.89% to Rs 351.40 on volume of 1.51 crore shares on BSE. On Monday, 11 February 2008, the stock had debuted at Rs 547.80, a premium of Rs 21.73% over the IPO price of Rs 450.
Thermax surged 10.17% to Rs 639 and it topped gainers in BSE’s A group shares. The company has reportedly entered into a technical collaboration with Babcock & Wilcox Power Generation Group (B&W PGG), to foray into manufacturing and supply of utility boilers of up to 800 megawatt used to power thermal plants
Civil engineering company J Kumar Infraprojects fell 0.39% to Rs 102.30. The company secured a Rs 170 crore order from Municipal Corporation of Greater Mumbai.
Pollution control equipment maker Thermax soared 10.17% to Rs 639 after the company signed a technical transfer agreement with US-based abcock & Wilcox Power Generation Group that grants Thermax the right to engineer, manufacture and sell sub critical B&W Radiant utility boilers in India.
Telecom service provider Tata Communications rose 4.64% to Rs 468.70 after the telecoms firm said it formed a partnership in China for network services and was looking for similar tie-ups in Asia and in the Middle East.
Real estate firm Mahindra Lifespace Developers fell 0.10% to Rs 600.20 after it signed an agreement to develop a mixed-use special economic zone in Sri Lanka.
Side counters: Modipon (up 13.34% to Rs 65), Essar Oil (up 12.63% to Rs 184.15), Axon Infotech (up 12.23% to Rs 50), Time Technoplast (up 10.85% to Rs 805), OCL India (10.67% to Rs 209) and Micro Inks (up 7.50% to Rs 303.95), edged higher.
Reliance Power clocked the highest turnover of Rs 531.19 crore on BSE. Jaiprakash Associates (Rs 429.52 crore), Reliance Industries (Rs 349.42 crore), Reliance Natural Resources (Rs 320.80 crore) and Tata Investment Corporation (Rs 300.57 crore), were the other turnover toppers on BSE in that order.
Reliance Natural Resource registered highest volume of 2.72 crore shares. Jaiprakash Associates (1.59 crore shares), Reliance Power (1.51 crore shares), Reliance Petroleum (1.12 crore shares) and Cords Cable Industries (1.05 crore shares), were the other volume toppers on BSE in that order.
In Europe, key indices in UK, France and Germany were down by 0.29% to 0.69 %.
Asian markets finished on a mixed note today, 13 February 2008. Key indices in Hong Kong, Japan, and Singapore were up by 0.80% to 1.08%. However, indices in China, Taiwan and South Korea were down by 0.04% to 2.37%.
US markets edged higher on Tuesday, 12 February 2008, as blue chip shares rallied after billionaire investor Warren Buffett offered to insure about $800 million in tax-exempt bonds and major banks announced a new plan that they say will help homeowners avoid foreclosures. The Dow Jones industrial average advanced 133.4 points, or 1.1%, to 12,373.41, paring an advance of as much as 229 points. The S&P 500 rose 9.73 points, or 0.7%, to 1,348.86. The Nasdaq Composite index finished unchanged at 2,320.04.
India's industrial output rose 7.6% in December 2007 from a year earlier, accelerating from the previous month's downwardly revised 5.1%, helped by stronger manufacturing, government data released yesterday, 12 February 2008 showed.
The Central Board of Direct Taxes (CBDT) has proposed several measures that are expected to have far-reaching implications for the capital market.
In its pre-Budget proposals to the finance ministry, CBDT has sought an amendment to Section 115 AD of the Income Tax Act so that all foreign institutional investors (FIIs) pay capital gains tax on their profits in India.
At present, the gains made by some FIIs are treated as business income and are not taxable on the grounds that these institutions do not have permanent establishments in India.
Market may move up amid volatility
The market may head higher tracking firm global markets. However volatility may continue to remain high.
Majority of Asian markets were trading higher today, 13 February 2008. Hong Kong's Hang Seng (up 1.53% at 23,271.85), Japan's Nikkei (up 1.39% at 13,202.70), Taiwan's Taiwan Weighted (up 0.75% at 7,609.68), Straits Times (up 1.80% at 2,978.85) and South Korea's Seoul Composite (up 0.19% at 1,646.35) advanced.
However China’s Shanghai Composite slipped 1.41% to 4,535.01
US markets edged higher on Tuesday, 12 February 2008, as blue chip shares rallied after billionaire investor Warren Buffett offered to insure about $800 million in tax-exempt bonds and major banks announced a new plan that they say will help homeowners avoid foreclosures. The Dow Jones industrial average advanced 133.4 points, or 1.1%, to 12,373.41, paring an advance of as much as 229 points. The S&P 500 rose 9.73 points, or 0.7%, to 1,348.86. The Nasdaq Composite index finished unchanged at 2,320.04.
Back home, the 30-share BSE Sensex fell 22.90 points or 0.14% at 16,608.01 in volatile trade, on Tuesday, 12 February 2008. The Sensex has now shed 1531.48 points or 8.44% in last five trading sessions to the current 16,630.91 from 18139.49 on Wednesday, 6 February 2007.
India's industrial output rose 7.6% in December 2007 from a year earlier, accelerating from the previous month's downwardly revised 5.1%, helped by stronger manufacturing, government data released yesterday, 12 February 2008 showed.
As per provisional data, foreign institutional investors (FIIs) sold shares worth Rs 498.06 crore on Tuesday, 12 February 2008. Domestic institutional investors (DIIs) were net sellers of shares worth Rs 351.16 crore on that day.
FIIs were net buyers to the tune of Rs 558.39 crore in the futures & options segment on Monday, 12 February 2008. They were net buyers of index futures to the tune of Rs 264.89 crore and sold index options worth Rs 93 crore. They were net buyers of stock futures to the tune of Rs 414.10 crore and sold stock options worth Rs 27.59 crore.
Meanwhile as per reports, Andhra Pradesh Chief Minister Y S Rajasekhara Reddy yesterday, 12 February 2008 announced a reduction in sales tax on aviation turbine fuel (ATF) from the existing 33% to 4%. The reduction would mean a loss of Rs 50-60 crore annual revenue to the government.
Stocks to watch
Pyramid Saimira Theatres is reportedly on the verge of acquiring a theatre chain in UK. The target firm owns 70 screens in the UK. However, the size of the deal is around $100 million, the reports added.
Indus Towers, the joint venture company of Bharti Airtel, Vodafone and Idea, will reportedly tap the capital markets in the next 2-3 years followed by the listing of Bharti Airtel's tower unit. While Bharti Airtel and Vodafone hold 42% stake each in Indus Towers, the remaining 16% stake is held by Idea Cellular, the reports added.
National Mineral Development Corporation (NMDC) is reportedly scouting for iron ore and coal mines for acquisition, both in India and overseas. Domestically also the company intends to acquire iron ore mines in Karnataka, Jharkhand and Chhatisgarh. It is also eyeing coal mines in West Bengal, the reports added. Separately, the reports suggested that NMDC will increase output by 10% in the year starting April to meet rising demand from steelmakers.
Andhra Pradesh Government has cut sales tax on aviation turbine fuel (ATF) from 33% to 4%, a reduction of nearly 90%. Maharashtra Government levies 25% on the fuel. Aviation stocks may see some action based on this report.
Bharat Heavy Electricals (Bhel) is reportedly in discussions with a few Russian construction companies for tapping the power market that is booming on the back of an energy-led growth. It would be for the first time that Bhel would be entering Russia in recent history, the reports added.
The department of telecom (DoT) has reportedly informed the Central Vigilance Commission and lawmakers separately that it has not allocated excess spectrum to any GSM operator and dismissed allegations that the operators were hoarding spectrum.
A mixed finish for US Market
Warren Buffet gives Dow a good lift but technology stocks drag Nasdaq lower
US Market closed mixed today, Tuesday, 12 February, 2008 after Dow ended considerably higher but technology stocks retreating back in the late hours. Stocks got a psychological lift from billionaire investor Warren Buffett's proposed buyout of bond insurers' liabilities. Nine of the ten economic sectors ended the day in positive territory. Technology was the sole decliner.
It was reported early morning today that Warren Buffett's Berkshire Hathaway has made an offer to several flagging bond insurers. Berkshire Hathaway has sent an offer to reinsure the municipal bond holdings of Ambac, MBIA and FGIC. Berkshire offered to take a liability of $800 billion, adding $5 billion of its resources. Berkshire pledged there would be no distribution or management fees taken for 10 years.
After being up by more than 200 points at one time, The Dow Jones industrial Average ended the day with a gain of 133.4 points at 12,240. The Nasdaq Composite Index, finished lower by 0.02 points at 2,320.04. S&P 500 finished higher by 9.7 points at 1,348.7.
Twenty-seven out of thirty Dow stocks ended in the green today. Boeing, Merck, Du-Pont along with financial stocks like Citigroup, American Express and JP Morgan led the team of winners. The Warren Buffet news gave the financial sector a good boost today.
Dow component General Motors today reported a fourth quarter profit today, beating the expected loss. But the company also reported losses of $38.7 billion last year - its biggest annual decline.
On the technology front, Nasdaq ended marginally lower today led by Apple, Google, RIMM and Amazon stocks.
Barring VSNL, MTNL and Patni Computers, all Indian ADRs ended in the green today. HDFC Bank and ICICI Bank ended higher by 3.7% and 2.6% respectively.
Crude prices fell today. This was crude’s first fall in four days. Prices fell today on forecasts that a government report tomorrow will show U.S. stockpiles increased for a fifth week. US stockpiles are expected to climb by more than 2 million barrels last week. Crude-oil futures for light sweet crude for March delivery today closed at $92.78/barrel (lower by $0.81/barrel or 0.9%) on the New York Mercantile Exchange. The price earlier rose to an intraday high of $94.15 earlier and fell to a low of $94.76.
Volume on the New York Stock Exchange topped 1 billion, and advancing stocks topped those declining more than 2 to 1. On the Nasdaq, nearly 1.6 billion shares exchanged hands, and advancers topped decliners 2 to 1.
Tomorrow, Retail sales data for January is due. Additionally, business inventories are expected in tomorrow followed by the weekly crude oil inventory report.
Morning Call - Feb 13 2008
Market Grape Wine :
In House :
Nifty at a supp of 4800, 4742 and 4685 with resis at 4950 and 5025
Cash: Buy REL above 1529 with a TGT of 1590 and a SL of 1509
Buy SBIN above 2058 with a TGT of 2110 and a SL of 2039
F&O: Buy LICHSG above 266 with a TGt of 278 and a SL of 261
Buy Nicolaspiramal above 310 with a TGT of 322 and 305
Out House :
Markets at a support of 16456 & 16363 levels with resistance at 16696 & 17171 levels .
Buy : RIL & RelCap
Buy : Tisco & Sail
Buy : SBIN & IciciBnak
Buy : Vsnl & Titan
Buy : INFY & Satyam at dips
Buy : IBullsReal & Ibulls
Buy : SKumar & Geship
Buy : BajaHind & Balrampur
Buy : Neyvelli & MRPL
Dark Horse : Bharti , RELCAP , INFY , Kotak , RIL , Sbin , & GujNreCoke
Grey Market Discounts!
Rural Electrification 90 to 105 9 to 11
GSS America InfoTech 400 to 440 Discount
Cords Cable Ind. 135 -10/+10
KNR Construction 170 Discount
On Mobile Global 440 8 to 10
Bang Overseas 207 5 to 7
Shri Ram EPC 300 Discount
IRB Infra 185 12 to 15
Manjushree Extrusion 45 Discount
Tulsi Extrusions 85 10 to 12
Pre Market Watch - Feb 13 2008
The Indian Market is likely to have a positive opening due to favoring cues from the global markets. On Tuesday, the Indian market tumbled in the final trading hours of the session to close in the negative territory. Taking the favoring cues from the global markets, the Indian market opened on a firm note but unable to sustain at higher levels and pare all its gains. The favoring cues from the domestic scenario like India''s industrial output rose 7.6% in December 2007 from a year earlier also fell to hold the gains of the market. The Small Caps and Mid Caps were the most hit as they face heavy selling pressures across the counters. The BSE Sensex closed lower by 22.90 points at 16,608.01 and NSE Nifty fell by 18.75 points to close at 4,838.25. We expect that the market may gain some grounds during the trading session.
On Tuesday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 133.40 points at 12,373.41. S&P 500 index grew by 9.73 points to close at 1,348.86 and NASDAQ closed flat at 2,320.04.
Indian ADRS ended mixed. In technology sector, Satyam grew by (2.61%) along with Infosys by (1.45%) and Wipro by (0.86%). In banking sector, HDFC bank jumped by (3.78%). VSNL fell by (3.99%).
Today, the major stock markets in Asia are trading firm. Hang Seng is trading higher by 350.18 points to trade at 23,271.85 along with Japan''s Nikkei trading up by 180.74 points at 13,202.70 and Taiwan Weighted is trading at 7,609.68 up by 56.38 points.
The FIIs on Tuesday stood as net seller both in equity and debt. The gross equity purchased was Rs8,169.90 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs10,015.40 Crore and gross debt sold stood at Rs20 Crore. Therefore, the net investment of equity reported was (Rs1,845.60 Crore) and net debt was (Rs20 Crore).
Today, Nifty has support at 4,743 and resistance at 4,973 and BSE Sensex has support at 16,312 and resistance at 17,128.
Trading Calls - Feb 13 2008
Nifty 4838 Supp 4600 Ress 5200
Buy ABB (1264) SL 1249
Target 1294, 1299
Buy BPCL (417) SL 413
Target 427, 431
Buy Escorts (97) SL 94
Target 105, 107
Sell Birla Corp (211) SL 216 Target 201, 198
Sell Pfizer (600) SL 606
Target 590, 595
Nifty futures at a discount
Turnover in F&O segment declines
Nifty February 2008 futures were at 4783.15, at a discount of 55.10 points as compared to spot closing of 4838.25.
The NSE futures & options (F&O) segment turnover was Rs 36,223.5 crore, which was lower than Rs 41,257.27 crore on Monday, 11 February 2008.
Reliance Natural Resources February 2008 futures were at premium, at 118, compared to the spot closing of 117.05.
NTPC February 2008 futures were at discount, at 182.25, compared to the spot closing of 185.
Larsen & Toubro February 2008 futures were at discount, at 3249, compared to the spot closing of 3267.30.
In the cash market, the S&P CNX Nifty lost 18.75 points or 0.39% at 4838.25.
Precious metals lose some glitter
Gold and silver prices drop today after four consecutive days of rise
Bullion metals fell today, Tuesday, 12 February, 2008. Prices rose as crude oil prices also softened a bit. Prices of gold and silver had been raying since the past few days. Reports that imports of gold by India, world’s largest consumer of gold, declined in FY 2007 also led to the precious metal’s fall today.
Prices had increased for four straight days as crude prices rallied boosting the appeal of the precious metal as a hedge against inflation. Also, news of potential supply shortages in South Africa continued to boost the prices. Silver prices also ended considerably lower 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.
Comex Gold for April delivery fell $15.6 (1.7%) to close at $911.1 an ounce on the New York Mercantile Exchange. On 30 January, 2008 prices had hit a high of $941 in the after hours trading. This year, prices have gained 9.5% till date. In January, prices gained 11%, the highest monthly gain since April 2006. Last week, gold prices closed higher by $8.8 (0.96%) against previous close of $913.5.
Comex Silver futures for March today fell by 22 cents (1.2%) to $17.25 an ounce. Silver has gained 14.9% in 2008. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years. In January this year itself, prices climbed 14%.
Gold also fell today after the Group of Seven officials meeting in Tokyo over the weekend said they supported the International Monetary Fund's effort sell its gold reserves in order to invest in higher-yielding assets. The IMF is the third largest holder of gold in reserves after the U.S. Federal Reserve and the German central bank.
In the energy market today, crude oil fell for the first time in four days on forecasts that a government report tomorrow will show U.S. stockpiles increased for a fifth week. Crude oil for March delivery fell 81 cents (0.9%) to $92.78 a barrel.
In the currency markets today, the dollar index, which tracks the performance of the greenback against a basket of six major currencies, was at 76.236, down from 76.453
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.
On 31 January, 2008, the Federal Reserve lowered interest rates 0.5% point to 3% today. This was on top of the 75 bps rate cut to 3.5% that Fed did earlier this year. The interest rate cuts are to avoid the US economy from plunging into recession.
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%.
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 April delivery closed lower by Rs 169 (1.4%) at Rs 11,596 per 10 grams. Prices rose to a high of Rs 11,783 per 10 grams and fell to a low of Rs 11,560 per 10 grams during the day’s trading.
At the MCX, silver prices for March delivery closed Rs 192 (0.9%) lower at Rs 22,040/Kg. Prices opened at Rs 22,220/kg and fell to a low of Rs 21,927/Kg during the day’s trading.
A Buffet for hungry bulls!
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price - Warren Buffett.
The thirst for liquidity remains. But hungry bulls could help themselves a little with a new plan to rescue US homeowners from defaulting and a lifeline offered by Warren Buffett to the struggling bond insurers. This seems to have perked up the mood across world markets.
We expect a slight bounce at the opening bell on the back of the overnight rally across Western markets and firm trend in Asian markets. Remember, we are certainly not out of the woods yet as the undertone remains quite subdued and investor confidence is at its lowest in recent years. How long this period (of consolidation/correction) is likely to last nobody can tell. So, it would be wise to just endure the pain for now and hope for the best.
Hindustan Unilever will announce its Q4 and CY07 results today. VSNL could see some action as the company announces its new identity - Tata Communication. A large corporate house (through its entities) is said to be active on the Bank Nifty in recent days. We also have another listing today as Cords Cable Industries makes its stock market debut.
Back home, we are going to have a government investigation into the recent volatility in the market and the near collapse of the IPO market. Also, market regulator SEBI is reportedly considering an overhaul of the F&O segment. In short, the governments and regulators have rolled up their sleeves and are ready to fight market demons - both internal and external. Where this will lead us is still not clear, but it may just improve the sentiment for the time being.
FIIs were net sellers of Rs4.98bn (provisional) in the cash segment on Tuesday. Local institutions were net buyers of Rs3.51bn. In the F&O segment, FIIs were net buyers of Rs5.58bn. On Monday, foreign funds pulled out a whopping Rs18.46bn ($457.5mn) from the cash segment. Mutual funds were net sellers of Rs5.71bn in the cash segment.
Most Asian markets are up this morning after the yen weakened against the dollar and Warren Buffett offered to assume some liabilities from US bond insurers. Sony and Honda led Japanese exporters higher on expectations a weak currency will boost the value of their US sales.
Mizuho Financial climbed for the first time in six days on speculation that Buffett's offer will help stem credit losses. BHP Billiton rose to a one-week high after metal prices gained for a fifth day in London.
The MSCI Asia Pacific Index added 0.5% to 140.28 at 9:49 a.m. in Tokyo, following a 0.2% rise yesterday.
The Nikkei in Tokyo was last up 180 points at 13,202, poised for its largest advance since Feb. 4. The Hang Seng in Hong Kong advanced 487 points to 23,408. The Kospi in Seoul gained 5 points to 1648 and the Straits Times in Singapore rose 59 points to 2985.
The Shanghai Composite in China was down 70 points at 4529 and the Taiex in Taiwan gained 60 points to 7613.
Blue chip US shares rallied on Tuesday after billionaire investor Warren Buffett offered to insure about $800mn in tax-exempt bonds and major banks announced a new plan that they say will help homeowners avoid foreclosures. But technology shares lost momentum by the close, leaving the Nasdaq virtually flat.
The Dow Jones Industrial Average rose 133.4 points, or 1.1%, to 12,373.41, paring an advance of as much as 229 points. The S&P 500 added 9.73 points, or 0.7%, to 1,348.86 after earlier gaining 1.7%. The Nasdaq finished unchanged at 2,320.04.
Market breadth was positive. About two stocks rose for every one that fell on the New York Stock Exchange.
After the close, Applied Materials reported lower quarterly sales and earnings that nonetheless topped forecasts. Shares jumped more than 4% in extended-hours trading. Dow component Coca-Cola reports earnings on Wednesday.
Wednesday's trade is also likely to be influenced by the January retail sales data due before the start. After the session begins, the December business inventories report is due, as well as the weekly oil inventories survey.
Buffet made the offer to the three big bond insurers, MBIA, Ambac Financial and FGIC. According to Buffett, one firm has already rejected the offer and the other two have not responded. Late on Tuesday, Ambac said it rejected the offer.
Critics argue that the deal is better for Berkshire Hathaway than for the bond insurers. Shares of both MBIA and Ambac declined.
Separately, Bank of America, Citigroup and four other lenders announced a plan to offer a 30-day freeze on home foreclosures while loan modifications are considered.
Treasury Secretary Henry Paulson and US Housing and Urban Development Secretary Alphonso Jackson said in Washington that Project Lifeline would help stabilize communities disrupted by mortgage defaults.
GM reported better-than-expected quarterly results. But it also indicated that it needs to keep cutting costs by offering buyouts to 74,000 employees, its entire US hourly workforce. GM shares ended lower, giving up gains.
Treasury prices fell, raising the yield on the benchmark 10-year note to 3.66% from 3.61% late on Monday. In currency trading, the dollar fell versus the euro and gained against the yen.
US light crude oil for March delivery fell 81 cents to settle at $92.78 a barrel on the New York Mercantile Exchange. COMEX gold for April delivery fell $15.60 to settle at $911.10 an ounce.
Across the Atlantic, shares in Europe surged. The pan-European Dow Jones Stoxx 600 index jumped 3.3% to 323.03, led higher by banks. The UK's FTSE 100 rose 3.5% to 5,910, while Germany's DAX 30 added 3.3% to 6,967.84 and the French CAC-40 gained 3.4% at 4,840.71.
Most emerging markets too finished sharply higher. The Bovespa in Brazil rose 1.9% to 61,805 while the IPC index in Mexico gained 0.3% at 28,869. The RTS index in Russia surged 3.3% to 1980 while the ISE National-30 index in Turkey soared 6.2% to 54,434.
Looking for some relief
It was a see-saw trading session which ended on a flat note as bulls ran out of steam towards the end. Alternate bout of buying and selling was witnessed on the bourses. Buying momentum went on to lift the benchmark Sensex above the 200 DMA (Day Moving Average) for some times, but investors and traders preferred to book profits at every rise.
The Banking stocks bucked the negative trend after Finance Minister P. Chidambaram asked state-run banks to boost home and consumer loans. ICICI Bank, Kotak Bank and Axis Bank were among the leading gainers.
Finally, the 30-share Sensex closed flat at 16,608 barely losing 22 points. The NSE Nifty closed at 4,838 losing 18 points.
Overall about 446 stocks advanced, 2,232 stocks declined while 31 stocks remained unchanged. Among the BSE 30 index only 5 stocks advanced and 25 stocks declined.
Everonn Systems was locked at 5% lower circuit to Rs699. According to reports the company acquired Patna- based Toppers Tutorial Pvt Ltd that operates in the IIT-JEE and AIEEE entrance exam coaching space. The scrip touched an intra-day high of Rs740 and a low of Rs699 and recorded volumes of over 5,000 shares on NSE.
J. Kumar Infraprojects, a civil engineering and infrastructure development company, got listed at Rs115 on the BSE against an offer price of Rs110 per share. Thereafter the scrip witnessed heavy selling pressure and immediately slipped in to negative territory. After falling over 20%, the scrip managed to stage a come back recovering almost 14% finally closing at Rs102 down 6%.
J Kumar, a construction company with operations in Maharashtra, focuses on building roads, flyovers, buildings and piling works. The company had entered capital market with a public issue of 65 lakh shares of Rs10 each at a price band of Rs110-120 per equity share. The offer proceeds (Rs72-78crore) are to be utilised for purchasing capital equipment and for working capital requirements. The company also announced that it secured an order worth Rs1.70bn from Municipal Corporation of Greater Mumbai. Following this order the order book position of the company, as on date, stands at about Rs6.31bn.
McNally Bharat gained 2.8% to Rs219 after the company announced that it received an order from SAIL for Expansion of IISCO Steel Plant - Raw Material Handling System Ore Handling Plant valued at Rs6.21bn inclusive of all taxes and duties. The scrip touched an intra-day high of Rs228 and a low of Rs208 and recorded volumes of over 1,00,000 shares on NSE.
NMDC was frozen at 5% lower circuit to Rs9774.15. The company announced its plans to raise production capacity by 10% in 2008-09. The company also announced that it was looking for cola mines in Australia. The scrip touched an intra-day high of Rs9774.15 and a low of Rs9774.15.
Elecon Engineering advanced over 2.5% to Rs224 after the company yesterday announced that it secured a Rs1.9bn order from SAIL for supply of equipment. The scrip touched an intra-day high of Rs231 and a low of Rs175 and recorded volumes of over 93,000 shares on NSE.
Thermax was down 1.6% to Rs580. The company announced that it entered in to a license agreement with Babcock & Wilcox. The scrip touched an intra-day high of Rs598 and a low of Rs567 and recorded volumes of over 75,000 shares on NSE.
PVR bounced slipped 3.5% to Rs227. The company agrees to entertainment venture with major Cineplex group. The scrip touched an intra-day high of Rs242 and a low of Rs224 and recorded volumes of over 3, 000 shares on BSE.
News Snippets:
Bajaj Auto says the feasibility study on a possible JV for its small car project would be completed by early March. (BS)
NTPC is in talks with GE, Kyushu Electric Power Co. of Japan and Brookfield Power Corp of Canada for a JV in renewable power generation. (FE)
M&M to sign a pact with Sri Lanka government to set up US$100mn IT SEZ. (ET)
TCS plans to reorganise its global operations into integrated, customer-centric units to enhance customer focus, drive operational agility and address growth opportunities. (BS)
L&T bags Rs14.4bn order from Netherlands to supply eight lift vessels. (ET)
Domestic airlines to increase air fares, in anticipation of a steep 40% rise in airport charges in Bangalore, Hyderabad, Delhi and Mumbai. (BS)
IOC will invest Rs35bn to lay 2,080 km crude oil and petroleum product pipeline by 2011-12. (BS)
JSW Steel is focusing on improving efficiency and profitability levels of the three companies it acquired recently in Texas, US. (BS)
ICICI Bank, HDFC Bank and IDFC in the race to acquire Sabre Capital's stake in Centurion Bank of Punjab. (ET)
Indus Tower, a JV between Bharti, Vodafone and Idea to tap capital markets in 3 years. (ET)
Thermax is strengthening its presence in the water treatment business; plans to look at opportunities in cities, SEZs and municipal facilities. (BS)
Thermax enters into a technical collaboration with Babcock & Wilcox Power Generation Group to foray into utility boilers of up to 800MW. (BS)
NMDC is expecting iron ore prices to gain up to 50% by April 2009. (BS)
HDFC Bank signs US$7.4mn, three-year strategic enterprise agreement with Symantec. (BS)
Asset Reconstruction Company (Arcil) has disposed of Rs39.2bn of securitised bad loans portfolio to Deutsche Bank. (FE)
Kingfisher may replace Deccan’s peak-hour flights on metro routes as part of the route rationalization program. (Mint)
Air Deccan and Kingfisher swap deal to be finalized by April. (BL)
Indo Tech Transformers has commissioned a plant to manufacture 220Kv and 400Kv class power transformers near Kancheepuram. (BS)
McNally Bharat wins an order worth Rs6.9bn from SAIL. (BL)
Pipavav Shipyard will deliver its first Panamax vessel to a Greek firm by March 2009. (BS)
GMDC plans to set up three plants to generate 4,500MW and invest around Rs200bn. (ET)
Wockhardt to launch Azithromycin anti infection tablets in US. (ET)
Hinduja Group plans to set up 1,600MW power plant in Vishakapatnam. (BL)
Vivemed buys UK based company for US$21.1mn. (BL)
Pyramid Samaria to acquire a UK theatre chain company. (BL)
Economic Front Page:
CBDT has sought an amendment to Section 115 AD of the I-T Act so that all FIIs pay capital gains tax on their profits in India. (BS)
The steel ministry’s meeting with major steel producers on price cut ended inconclusively. The two sides are expected to meet again. (BS)
The FM has asked PSBs to implement the interest-free loan package for sugar mills in letter and spirit and submit a report by Feb 22. (BS)
The government has told TDSAT that it would allot spectrum to all players with LoIs for starting telephone services, but a lot depends on defense services vacating radio frequencies for civilian use. (BS)
The FM has asked PSBs to lend more to housing and consumer durables borrowers at affordable cost. (BS)
RBI may regulate currency futures trading. (ET)
IIFCL may get US$250mn from forex reserve for funding infrastructure. (ET)
Government may use forex reserves to create price stabilization fund for petroleum products. (ET)
Container freight rates from Indian ports to key European ports will increase by US$100 per TEU from March 1. (BS)
The finance ministry has proposed withdrawing direct tax benefits to offshore banking units (OBU) on the profits earned from SEZs. (FE)
India’s exports to the US in steel containers fell 5.7% in the first 11 months of 2007 over the same period in 2006. (Mint)
Finance ministry is considering cutting duty to 8% from 16% on packaging material. (ET)
SVEC Constructions withdraws IPO
Attention Members:
Members are requested to note that the book building issue of SVEC CONSTRUCTIONS LIMITED which was scheduled to close on 13th Feb. 2008 has been withdrawn by the Lead Managers and now the Issue stands Close.
Today's Pick - Indiabulls Financial
We recommend a sell in Indiabulls Financial Services from a short-term perspective. It is evident from the chart of this stock that it has been on a long-term up trend since its July 2006 trough of Rs 90. However, it began to decline after marking its life-high of Rs 1,028 in December 2007. Since then the stock has been on medium-term downtrend. We observe that the down days of the stock’s medium-term downtrend have been supported by good volumes. In late January the stock penetrated the 50-day moving average and recently it broke below the 200-day moving average too. The stock is currently testing the long-term up trendline at around Rs 600 levels. The daily momentum indicator is featuring in the bearish zone. The daily moving average convergence divergence is steadily declining in the negative region. We are bearish on the stock in the short-term. We expect the stock to break through the long-term up trendline and decline further to touch our target price of Rs 510 in the short-term. Investors with a short-term perspective can sell or book profit in the stock with stop loss at Rs 680.
Via Businessline
Crude softens after three days
Prices slip on anticipation of inventory build up
Crude prices fell today, Tuesday, 12 February, 2008. This was crude’s first fall in four days. Prices fell today on forecasts that a government report tomorrow will show U.S. stockpiles increased for a fifth week. US stockpiles are expected to climb by more than 2 million barrels last week.
Crude-oil futures for light sweet crude for March delivery today closed at $92.78/barrel (lower by $0.81/barrel or 0.9%) on the New York Mercantile Exchange. The price earlier rose to an intraday high of $94.15 earlier and fell to a low of $94.76.
Crude prices had rose in the previous three sessions and prices incrased more than 7%. Prices rose after Valero Energy shut its Delaware refinery because of a storm-related power failure yesterday and cold weather moved across the northern U.S.
On the other side, Venezuelan President Hugo Chavez last weekend threatened to cut off oil supplies to the U.S. in retaliation of Exxon Mobil’s legal action to freeze Venezuela's assets. Venezuela is South America's second largest oil producer and one of the world's top exporters to the U.S.
Brent crude oil for March settlement today fell $0.67 (0.7%) to $92.86 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.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
World oil market is poised to ease over the next two years
In a monthly report released today, EIA said the world oil market is poised to ease over the next two years with production increases offsetting moderate growth in oil demand.
March natural gas fell 9.5 cents to $8.436 per million British thermal units.
Against this backdrop, March reformulated gasoline fell 2.82 cents to $2.3680 a gallon and March heating oil lost 1.33 cent to $2.5911 a gallon.
Last Friday, two ministers of Organization of Petroleum Exporting Countries (OPEC) hinted that the cartel might go for a production cut in its next meeting at March, 2008. This spurted up crude prices and the same ended almost 4% higher on that day. At its 1 February meeting at Vienna, OPEC members decided to keep current output levels unchanged.
At the MCX, crude oil for February delivery closed at Rs 3,680/barrel, lower by Rs 35 (0.9%) against previous day’s close. Natural gas for February delivery closed at Rs 337.3/mmtbu, lower by Rs 3.2/mmtbu (0.9%)Reliance Power - Long Term Investing
One of the visitors - Sridhar sends us this informative article for LONG LONG LONG ULTRA PATIENT Reliance Power Investors :)
Now for all who have invested in the Reliance IPO... something to read !
Reliance Power Limited IPO
Opens: 15th January 2008.
Closes: 18th January 2008.
Price Band: Rs 405 to Rs 450.
Price Band for Retail Investors: Rs 385 to Rs 430. (Rs 20 discount).
Number of shares offered to public: 22,80,00,000 (22.8 crore).
+ Number of shares to be subscribed by promoters: 3,20,00,000 (3.2 crore).
Total new shares issued (sum of above two) = (26 crore)
Number of shares for retail investors: 6,84,00000. (6.84 crore).
Issue size (public) = (22.8 - 6.84) X 450 + (6.84 X 430) = 7182 +2941.2
= Rs 10123.2 crore.
Number of shares outstanding pre-IPO: 200 crore.
Number of shares outstanding post-IPO: 226 crore.
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Retail Investors and NII can apply with Rs 115 margin per share. (The details of this have already been discussed in earlier posts).
Maximum application possible in retail category = 225 shares.
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Already, a lot has been discussed about Reliance Power and its business (which will be there a few years from now).
This is an extremely rare case where SEBI has allowed a company with almost 0 revenues, to raise money via an IPO.
If this was an IPO by some smaller group, it would have been 100% rejected by SEBI for having no business.
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Business:
The company claims that it will be developing power generation projects of 28200 MW over the next decade.
According to the IPO RHP, some of the projects that it will be developing are:
Rosa-I (to be commissioned in March 2010) - 600 MW - Coal based.
Butibori (to be commissioned in June 2010) - 300 MW - Coal based.
Rosa-II (to be commissioned in September 2010) - 600 MW - Coal based.
Shahpur Gas (to be commissioned in March 2011) - 2800 MW - Gas based.
Shahpur Coal (to be commissioned in December 2011) - 1200 MW - Coal based.
Dadri (to be commissioned in March 2013) - 7480 MW - Gas based.
Krishnapatnam (to be commissioned in September 2013) - 4000 MW - Coal based.
Urthing Sobla (to be commissioned in March 2014) - 400 MW - Hydropower based.
Tato II (to be commissioned in March 2014) - 700 MW - Hydropower based.
MP Power (to be commissioned in July 2014) - 3960 MW - Coal based.
Siyom (to be commissioned in March 2015) - 1000 MW - Hydropower based.
Kalai II (to be commissioned in March 2016) - 1200 MW - Hydropower based.
Sasan (to be commissioned in April 2016) - 3960 MW - Coal based.
If
everything goes as planned, capacity of Reliance Power at end of each year till 2016 will be:
2008: 0 MW.
2009: 0 MW.
2010: 1500 MW.
2011: 5500 MW.
2012: 5500 MW.
2013: 16980 MW.
2014: 22040 MW.
2015: 23040 MW.
2016: 28200 MW.
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Other Similar Companies:
I can think of two companies in the power generation sector that Reliance Power can be compared with:
NTPC and Tata Power.
NTPC has current capacity of 28000 MW and has target to achieve 66000 MW by 2017. ( See this thread on NTPC).
Tata Power has current capacity of 2300 MW.
It will be adding 10000 MW of capacity more by 2012. Thus, it will have a capacity of around 12300 MW by 2012 end.
The additions will all be coal based.
-Mundra Ultra Mega Power Project -4000 MW.
-Power plants in Maharastra - 3000 MW.
-Captive power plants for Tata Steel - 2000 MW
-Maithon Power Plant at Jharkhand - 1000 MW.
Tata Power also has other smaller business and also wants to enter shipping and logistics. Besides that Tata Power has investments valued at Rs 400+ per share of Tata Power. This works out to be Rs 10000 crore.
Around 2012 - 2013, both Tata Power is expected to have similar capacity as Reliance Power.
The interesting thing is at current price of Rs 1457, Tata Power is valued at just Rs 30000 crore. Remove Rs 10000 crore of investments and you can have it only for Rs 20000 crore.
At Rs 900, Reliance Power will have market value of 200000 crores....6.67 times that of Tata Power. .
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Financials:
With 2300 MW capacity, Tata Power made standalone profit of Rs 700 crore in FY 2007.
With 28000 MW capacity, NTPC made standalone profit of Rs 6900 crore in FY 2007.
Lets assume Reliance Power turns out to be much more efficient than these two companies. Add to that increased power rates.
With 28200 capacity, assume Reliance Power makes Rs 15000 crore of net profit in 2016-2017. Power companies are considered as utilities and worldwide trade at 10-15 times their earnings.
Lets assume 15 times ratio for Reliance Power in 2016.
What will be its market value?
15000 X 15 = Rs 225000 crore or Rs 995 per share.
This is an optimistic view:
-there will be no further equity dilution till 2016.
-assuming nearly twice as much efficiency as NTPC.
-that all projects will be completed before 2016 end.
-the company would have paid back all debt by then and interest costs would be in similar range as NTPC.
(NTPC already has established 28000 MW capacity and comparatively much lesser interest costs. (NTPC's P&L account states Rs 1800 interest cost for FY 2007).
So what about the debt?
The RHP mentions estimated cost of six projects Rosa I, Rosa II, Butibori, Sasan, Shahpur Coal, Urthing Sobla as Rs 30000 crore+.
Analysts estimate that Reliance Power will need Rs 70000 crore of debt to finance its projects which are estimated to cost 100000 crore+.
Rs 70000 crore of debt is not going to come at 2% interest rate. Even a 6% interest would mean an annual interest cost of Rs 4200 crore. Only in 2013, the company's capacity will cross 10000 MW. Thus, I do not expect any major debt repayment before 2014. If things don't go as planned, the debt burden will make a mockery of the balance sheet.
With Rs 12000 crore raised in equity and Rs 70000 crore of debt, these whole business will become a high-risk venture.
Any unforeseen delay/derailment of plans may create major problems for this company.
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Reliance Power - The Overlooked Fact:
Is Reliance Power just "Reliance Power"?
No.
It is actually "Reliance Power Limited" - a limited company.
So what does this mean for Reliance Power Limited?
It means if in the rare case, the calculations of the management go wrong and the company somehow goes to insolvency, none of the shareholders will lose anything expect the value of the shares.
If you are a share holder of Reliance Power and it goes into insolvency (unable to pay back debts), what do you stand to lose?
Rs 430 per share.
Lot of money....right?
What does Anil Ambani's AAA Project or REL lose?
Both of them had got their 45% (post-IPO) stake for Rs 1000 crore each. Plus they will each subscribe to 1.6 crore shares each at Rs 450 in the IPO......which works out to be Rs 720 crore.
Thus, AAA Project will be getting 101.6 crore shares of Reliance Power for Rs 1720 crore and REL will be getting 101.6 crore shares of Reliance Power for Rs 1720 crore.
Little less than Rs 17 per share.
This is what both the promoters are risking in this project.... Rs 17 per share ; while investors will be risking Rs 450 per share.
This is exactly the reason why Reliance Power was created.
First, by contributing just Rs 1720 crore each to Reliance Power, the promoters have shifted all risk to investors.
Second, by getting 45% stake (in REL's projects) to AAA Project for a mere Rs 1000 crore, AAA Projects (and Anil Ambani) have created wealth out of thin air.
Anil Ambani's Rs 1000 crore investment will be worth Rs 100000 crore when Reliance Power lists at Rs 900.
If the gamble works, the promoters (holding 90% stake in Reliance Power) will be worth billions of dollars.
If the gamble doesn't work, the promoters will lose Rs 1720 crore each and investors will lose Rs 10000+ crore which they will be paying for a mere 10% stake in Reliance Power.
What a way to create wealth...!!!....I don't have words to describe the brilliance of Anil Ambani's plans... .
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So what will I do with this IPO?
Firstly, I will subscribe to it,
not because I think it is a good company or is offering great value at Rs 430,
but because I am in this market to make money.
The markets are in such a frenzy, nobody bothers about valuations anymore........not even QIB and other institutional investors.
Everyone knows that Reliance Power will list at a premium and thus everyone will apply....valuations can wait for some other day.... .
Everyone should wait till last day and apply for it. Just check the subscription levels by 11 AM on last day.
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What will I do post-listing?
For bigger IPO's like Power Grid and Mundra Port, I have followed a sell-half-keep-half strategy.
Assuming listing at Rs 900, for Reliance Power, I will follow sell-all-keep-none strategy.
First, other companies are much cheaper.
Why should I keep a company valued at Rs 200000 crore -
when another company (with similar capacity by 2013) is available at Rs 30000 crore with much smaller debt burden and Rs 10000 crore worth of investments ...........referring to Tata Power.
If Reliance Power (at Rs 900) is available for Rs 200000 crore, why not buy NTPC for a similar price......Rs 225000 crore. NTPC plans to have a capacity of 66000 MW in 2017, while Reliance Power will have 28200 MW capacity in 2016.
Second, the risk is higher than other existing companies.
With marginally cash flows for next 5 years and Rs 70000+ crore of debt, the risk for Reliance Power is high. Tata Power and NTPC have existing cash flows to handle expansions....Reliance Power does not.
Third and the biggest factor is....the valuation of the company doesn't make much sense.
Why should Reliance Power be valued at Rs 200000 crore, when in highly optimistic scenario, it will not make more than Rs 15000 crore of profit in 2016 ? Even if it touches that figure of Rs 15000 crore, its market value in 2016 will not be much more than 225000-300000 crore. (if given a 15-20 times multiple).
A fixed deposit will make more money than that in 8 years.....and that too without any risk.
Also, I got the optimistic Rs 15000 crore figure by assuming two times margins as NTPC.
The fact is..... at least till 2014, Reliance Power will still be carrying most of its Rs 70000 crore debt and its interest costs will squeeze margins to a large extent.
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Final verdict:
Apply.
I will be selling all shares at 9:55..........not even waiting for a better price.
If you want to try for a better price, hold at your own risk.
The level of insanity in the markets is at a high...
Value and risk mean nothing today..... price and profit are the keywords.
Who knows.....the stock may got to Rs 1100 or more.
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Addendum:
Reliance Power may win more projects in the future.
However, it is unlikely that any new project that Reliance Power gets will be commissioned before 2012. Additional projects will also bring additional costs too.
It doesn't make much sense to consider future projects before they are actually won.
Also, Reliance Power is winning projects by offering very low rates - another factor that will decrease margins and increase risks for the company.
For example, in case of Krishnapatnam Ultra Mega Power Project, Reliance Power won with a bid of Rs 2.33 per unit.
L&T had bid Rs 2.69 per unit and Sterlite had bid Rs 4.19 per unit. Such aggressive pricing may backfire if costs rise due to some unexpected factors
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