NSE Bulk Deal Watch - May 6 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
06-MAY-2008,AZTECSOFT,Aztecsoft Limited,KARE ELECTRONICS AND DEVELOPMENTS (P) LTD,BUY,4646,77.55,-
06-MAY-2008,AZTECSOFT,Aztecsoft Limited,MINDTREE CONSULTING LIMITED,BUY,6600000,79.93,-
06-MAY-2008,LAKSHMIEFL,Lakshmi Energy and Foods,CAPITAL GROUP-A/C AMERICAN FUNDS INSURANCE SERIES GLOBAL SMA,BUY,722000,210.00,-
06-MAY-2008,LAKSHMIEFL,Lakshmi Energy and Foods,CAPITAL GROUP-A/C SMALL CAP WORLD FND INC,BUY,2401000,210.00,-
06-MAY-2008,PTL,PTL Enterprises Limited,KUBERSWAMY ASHUTOSH GONSULTANTS PVT LTD,BUY,500000,29.00,-
06-MAY-2008,SURYAJYOTI,Suryajyoti Spinning Mills,PRABHUDAS LILLADHAR PVT LTD,BUY,125000,45.00,-
06-MAY-2008,TWL,Titagarh Wagons Limited,B K SHAH CO KETAN BHAILAL SHAH,BUY,112538,836.26,-
06-MAY-2008,AZTECSOFT,Aztecsoft Limited,ABHAY BINDUMADHAV JOSHI,SELL,764137,80.00,-
06-MAY-2008,AZTECSOFT,Aztecsoft Limited,CHANDRASEKARAN VENKATASUBRAMANYAN,SELL,1235400,80.00,-
06-MAY-2008,AZTECSOFT,Aztecsoft Limited,DEBASISH CHAKRABORTY,SELL,352601,80.00,-
06-MAY-2008,AZTECSOFT,Aztecsoft Limited,KARE ELECTRONICS AND DEVELOPMENTS (P) LTD,SELL,750000,80.00,-
06-MAY-2008,AZTECSOFT,Aztecsoft Limited,KIRAN R BHAGWAT,SELL,361162,78.94,-
06-MAY-2008,AZTECSOFT,Aztecsoft Limited,SANJAY DATTATRAYA JEJURIKAR,SELL,679671,80.00,-
06-MAY-2008,AZTECSOFT,Aztecsoft Limited,V. R. GOVINDARAJAN,SELL,456598,80.00,-
06-MAY-2008,AZTECSOFT,Aztecsoft Limited,VENKATANARAYANAN SWAMINATHAN,SELL,1058271,80.00,-
06-MAY-2008,IBSEC,Indiabulls Securities Lim,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A.SVB DEPOSITORY RECE,SELL,2500000,121.00,-
06-MAY-2008,LAKSHMIEFL,Lakshmi Energy and Foods,CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD,SELL,1226175,210.00,-
06-MAY-2008,LAKSHMIEFL,Lakshmi Energy and Foods,LEHMAN BROTHERS ASIA LTD A/C LB INDIA HOLDINGS CAYMAN II LTD,SELL,1706464,210.00,-
06-MAY-2008,PTL,PTL Enterprises Limited,SHREE RANI SATI INVESTMENT & FINANCE LIMITED,SELL,681523,29.00,-
06-MAY-2008,SMSPHARMA,SMS Pharmaceuticals Limit,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,60000,234.60,-
06-MAY-2008,SURYAJYOTI,Suryajyoti Spinning Mills,VIJAY TEXTILES LTD.,SELL,100000,45.00,-
06-MAY-2008,TWL,Titagarh Wagons Limited,B K SHAH CO KETAN BHAILAL SHAH,SELL,112538,836.40,-
06-MAY-2008,VISESHINFO,Visesh Infotecnics Limite,HONEY BEE SECURITIES LIMITED,SELL,255000,17.44,-

BSE Bulk Deals to Watch - May 6 2008

Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
6/5/2008 517356 ACI INFOCOM DIVYA GUPTA S 45600 5.45
6/5/2008 504629 ANIL SP STEL SHEETAL RAJESH JAIN B 72100 26.23
6/5/2008 504629 ANIL SP STEL SHEETAL RAJESH JAIN S 42285 26.25
6/5/2008 504629 ANIL SP STEL SUMAN BAFNA S 53000 26.30
6/5/2008 590059 BIHAR TUBES HARDIK M MITHANI B 38162 152.27
6/5/2008 590059 BIHAR TUBES SPJ STOCK B 91129 152.01
6/5/2008 590059 BIHAR TUBES HARDIK M MITHANI S 39802 153.39
6/5/2008 590059 BIHAR TUBES SPJ STOCK S 91129 152.56
6/5/2008 590076 CAMSON BIO MELCHIOR INDIAN OPPURTUNITIES FUND B 200000 125.00
6/5/2008 590076 CAMSON BIO SHIVANAND SINGH S 200000 125.01
6/5/2008 512624 CHANDRIK TRA ANIL SHARMA B 80401 4.00
6/5/2008 512624 CHANDRIK TRA SANGEETA PAREEKH S 80401 4.00
6/5/2008 531127 ENRICH INDUT GALAXY TRADERS B 300000 2.00
6/5/2008 522183 ITL INDUSTRI RAJIV ARORA B 54826 53.15
6/5/2008 522183 ITL INDUSTRI NAIMISH J MEHTA B 28001 52.91
6/5/2008 522183 ITL INDUSTRI RAJIV ARORA S 33787 52.77
6/5/2008 522183 ITL INDUSTRI NAIMISH J MEHTA S 28001 52.90
6/5/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD B 2105921 2.00
6/5/2008 532283 KASHYAP TEC OM EDUCATION IT PVT LTD S 2185921 2.02
6/5/2008 532967 KIRI DYES H.J.SECURITIES PVT.LTD. B 119110 166.53
6/5/2008 532967 KIRI DYES H.J.SECURITIES PVT.LTD. S 119110 166.71
6/5/2008 531261 KUSHAGRA SO ROMY REALTY PRIVATE LTD B 120003 8.79
6/5/2008 500256 LOK HOUSI CO UNION INVESTMENT LUXEMBOURG S A AC UNIASIAPACIFIC B 250000 153.67
6/5/2008 522235 MINAL ENGINE SHRIKANT JESINGHBHAI PARIKH S 91770 20.41
6/5/2008 513446 MONNE ISPAT COPTHALL MAURITIUS INV LIMITED B 649731 535.00
6/5/2008 513446 MONNE ISPAT CITICORP INTL FINANCE CORPORATION S 650000 535.00
6/5/2008 517522 RAJ GLO WIR RAJRATAN INVESTMENT LTD B 303500 48.54
6/5/2008 517522 RAJ GLO WIR SHANTI ADEVI CHANDANMAL CHORDIA S 133800 48.00
6/5/2008 517522 RAJ GLO WIR CHANDANMAL RAJMAL CHORDIA S 169700 48.03
6/5/2008 530951 RAM INFORMAI VIDYA SAGAR SAH B 100000 19.86
6/5/2008 531324 ROSELABS FIN FALCON COMPLEX PVT LTD B 50000 11.89
6/5/2008 531374 SAAG RR INFR HARESH NARAIN KHATRI B 60300 69.81
6/5/2008 532498 SHRIRAM CITY ACASIA II PARTNERS LP B 1000000 390.00
6/5/2008 532498 SHRIRAM CITY CPIM STRUCTURED FUND A 20 LTD S 1000000 390.00
6/5/2008 532815 SMS PHARMACE CITIGROUP GLOBAL MARKETS MAURITIUS PVT. LTD S 57196 231.84
6/5/2008 530735 SUPER BAKE I SUMIT JAGDISHCHANDRA AGRAWAL B 15100 5.00
6/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD B 349974 840.68
6/5/2008 532966 TITAGARH WAG B K SHAH CO B 121447 837.56
6/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD S 349974 841.18
6/5/2008 532966 TITAGARH WAG B K SHAH CO S 120862 836.14
6/5/2008 531703 TRIBHVAN HSG SOMNATH PRASAD PATIL S 26000 51.70
6/5/2008 532478 UNITED BREW CROWN CAPITAL LIMITED B 6000000 213.00
6/5/2008 532478 UNITED BREW OPPENHEIMER INTL SMALL COMP FUND S 6000000 213.00
6/5/2008 532765 USHER AGRO MAYANKKUMAR RAMESHCHANDRA BHAT S 94803 160.54

Post Market Commentary - May 6 2008

The Indian market closed in negative territory on the back of heavy selling pressures across the sectoral indices. Tracking the weak cues from the global market, he domestic market opened on the back foot and kept on hovering in the negative territory throughout the trading session. He investors did not showed their active participation in booking their further positions. The market breadth was weak as 1722 stocks closed in red while 965 stocks closed in green.

The BSE Sensex closed lower by 117.89 points at 17,373.01 and NSE Nifty fell by 47.6 points to close at 5,144.65. The BSE Mid Caps and Small Cap closed lower by 68.95 points and 96.11 points at 7,230.31 and 8,749.24 respectively.

Losers from the BSE are Unitech (7.21%) along with Reliance Capital (6.85%), Glenmark Pharma (6.53%), HDIL (6.15%), Godrej inds (5.66%), Omaxe (5.48%) and Bharti Airtel (5.29%).

The Realty index declined by 404.36 points to close at 8,337.03. Major losers are Unitech (7.21%), Omaxe (5.48%), DLF (5.26%), Ansal Infra (4.58%), Penland (4.22%), Parsvnath (3.79%), Sobha Dev (3.22%) and Purvankara (1.48%).

The Capital Goods index dropped by 255.48 points to close at 13,954.55. Losers are Elecon Eng (4.60%), Praj inds (4.52%), Havell’s India (3.53%), Punj Lloyd (2.83%), AIA Engineer (2.41%), Lakshmi Machines (2.40%) and L&T (2.30%).

The Bankex index fell by 41.91 points to close at 9,088.70 as BOI (2.47%), Yes bank (2.46%), Karnataka bank (2.31%), Andhra bank (2.07%), Allahabad bank (2.04%), Fedetal bank (1.71%), SBI (1.29%) and Canara bank (1.14%).

The Metal index closed with marginal gains of 28.81 points at 15,915.81 as Sterlite inds (5.01%), Maharash Sea (4.57%), Hind Zinc (2.3%), Tata Steel (1.73%) and Nalco (1.64%) closed in green.

The Oil & Gas index closed lower by 54.67 points at 11,644.51 as HPCL (3.95%), IOCL (1.97%), BPCL (1.68%), Essar Oil (1.55%), RNRL (1.52%), Gail India (1.14%) and Reliance Inds (0.42%).

From the IT space, NIIT Ltd (4.80%), Tech Mahindra (2.49%), Satyam (1.96%), Infosys (1.84%), Wipro (1.70%), TCS (1.44%) and Mphasis (0.59%).

Rebound in IT stocks restricts fall in key benchmark indices

The key benchmark indices ended lower as investors resorted to profit booking due to lack of positive triggers in the market. Selling pressure was seen in mid-caps and small-caps counters with their barometers underperforming the Sensex.

Realty and power stocks were the worst hit, whereas FMCG and metal stocks were on the positive side. IT pivotals recovered at the fag end of the session after rupee slipped to eight-month low against the dollar.

European markets, which were mostly positive in early trade, slipped later led by Swiss bank UBS after it unveiled big job cuts. Key indices in Germany, France and UK were down 0.16% to 0.42%. UBS said it will slash 5,500 jobs or almost 7% of its workforce, and has a preliminary deal with US asset manager BlackRock Inc to sell a $15 billion portfolio of subprime mortgages. It also reported a sharp slowdown in new money entrusted to it by wealthy clients.

In contrast, most of the Asian markets recovered after trading negative in early trades. Key indices in Singapore, South Korea, Hong Kong and Taiwan were up 0.23% to 0.58%. However, China's Shanghai Composite was down 0.73%. Japanese markets are closed today on account of holiday.

The 30-share BSE Sensex fell 117.89 points or 0.67% at 17,373.01. The index lost 253.22 points at day’s low of 17,237.68, hit in mid-afternoon trade. Sensex gained 11.25 points at day’s high of 17,502.15, hit at the onset of trading session.

The broader based S&P CNX Nifty fell 47.6 points or 0.92% at 5144.65. Nifty May 2008 futures were at 5174.50, a premium of 29.85 points as compared to spot closing.

As per provisional data, foreign funds sold shares worth a net Rs 815.61 crore today. Domestic funds bought shares worth a net Rs 295.35 crore.

The market breadth was negative on BSE with 965 shares advancing as compared to 1722 stocks that declined. 68 stocks remained unchanged.

The BSE Mid-Cap index fell 0.94% to 7,230.31 and BSE Small-Cap index fell 1.09% to 8,749.24. Both the indices underperformed the Sensex.

BSE clocked a turnover of Rs 6691 crore as against Rs 6,393.68 on Monday, 5 May 2008. The NSE's futures & options (F&O) segment turnover was Rs 32856.62 crore, which was lower than Rs 32972.85 crore on Monday, 2 May 2008.

IT stocks moved up after rupee touched a 8-month low as oil refiners stepped up dollar buying after oil hit a record high, adding to concerns of a widening trade deficit and slowing capital inflows. The BSE IT index outperformed the Sensex, gaining 1.53% to 4,383.36.

Tech Mahindra (up 2.49% at Rs 943.40), Satyam Computer (up 1.96% at Rs 497.05), Infosys Technologies (up 1.84% at Rs 1,820.30), Wipro (up 1.70% at Rs 498.45) and TCS (up 1.44% at Rs 937.85), rose. The partially convertible rupee was at 40.85 per dollar, its lowest since 6 September 2007.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 0.42% at Rs 2654.40.

India’s top listed cellular service provider by market share Bharti Airtel slipped 5.29% to Rs 846.60. Bharti Airtel has reportedly bid for 51% of South African telecommunications group MTN. According to reports, Bharti had tabled a bid for MTN at 165 rand per share and had secured $12 billion from banks to finance the deal, which would make Bharti a top player in emerging markets telecoms.

The BSE Realty index underperformed the Sensex, sliding 4.63% to 8,337.03. Unitech (down 7.21% at Rs 307.05), Housing Development & Infrastructure Corporation (down 6.15% at Rs 781.70), Omaxe (up 5.48% at Rs 232), and Indiabulls Real Estate (down 1.44% at Rs 556.35), slipped.

India's largest real estate developer by market capitalisation DLF fell 5.26% to Rs 667.95.

The BSE Power index underperformed the Sensex, falling 2.15% to 3,315.61. Reliance Infrastructure (down 4.92% at Rs 1,442.30), Tata Power (down 4.49% at Rs 1,331.75), Torrent Power (down 2.23% at Rs 135.80), NTPC (down 1.28% at Rs 195.95) and Power Grid Corporation of India (down 0.80% at Rs 105.15), tumbled.

The BSE Bankex outperformed the Sensex, falling 0.46% to 9,088.70. Bank of India (down 2.47% at Rs 353.60), Yes Bank (down 2.46% at Rs 174.45), State bank of India (down 1.29% at Rs 1,756.20), and Kotak Mahindra Bank (down 1.28% at Rs 858.30), declined from the Bankex pack.

Union Bank of India (up 2.07% at Rs 172.25), Bank of Baroda (up 1.66% at Rs 325.35), HDFC Bank (up 0.66% to Rs 1,539.90) and Axis Bank (up 0.10% at Rs 947.85), moved higher from the Bankex pack.

India's largest private sector bank by assets ICICI Bank fell 0.55% to Rs 928.05.

Oil refiner Cairn India rose 1.67% to Rs 259.10 after the Goldman Sachs Group Inc raised its estimate on the stocks by 14% to Rs 325 a share.

PVC pipes maker Finolex Industries soared 6.73% to Rs 76.95 on repors the firm has decided to sell off its plot at Chinchwad near Pune. It is close to signing a deal with a US-based developer to sell the land for between Rs 350 crore and Rs 400 crore.

Dairy products maker Anik Industries was locked at upper limit of 5% to Rs 57.75 after posting 76.4% surge in net profit to Rs 8.96 crore on 58.1% increase in total income to Rs 333.27 crore in Q4 March 2008 over Q4 March 2007.

State-run lender UCO Bank jumped 1.99% to Rs 51.20 on reports the bank would raise Rs 325 crore through an equity issue in June 2008, and convert government equity worth Rs 300 crore into preference shares. The stock touched a high of Rs 54.20 earlier in the session.

Civil construction firm Patel Engineering rose 1.88% to Rs 607 after its unit's joint venture in the United States received a dam reconstruction contract worth $280 million. The stock had earlier touched a high of Rs 632.

Textiles manufacturer Mohit Industries spurted 10% to Rs 24 after posting 180.13% surge in net profit to Rs 0.42 crore on 1.93% fall in total income to Rs 29.71 crore in Q4 March 2008 over Q4 March 2007.

Steel maker JSW Steel fell 2.12% to Rs 879.60 on reports the firm will moderate any price hike this year and raise capacity to offset pressure on margins.

Polyester filament yarn maker Century Enka plunged 5.38% to Rs 121.40 after the company reported net loss of Rs 0.89 crore in Q4 March 2008 as compared to net profit of Rs 1.38 crore in Q4 March 2007. Total income rose 31.50% to Rs 326 crore in Q4 March 2008 over Q4 March 2007.

Titagarh Wagon clocked the highest turnover of Rs 263.39 crore. Reliance Capital (Rs 236.40 crore), Reliance Natural Resources (Rs 210.91), Reliance Petroleum (Rs 204.49 crore) and Reliance Infrastructure (Rs 177.87 crore), were the other turnover toppers on BSE in that order.

Reliance Natural Resources reported the highest volume of 1.74 crore shares on BSE. IFCI (1.73 crore shares), Ispat Industries (1.50 crore shares), Tata Teleservices (Maharastra) (1.19 crore shares) and Reliance Petroleum (1.01 crore shares), were the other volume toppers on BSE in that order.

US markets declined yesterday, 5 May 2008, with financial shares facing the maximum brunt on fears of Bank of America Corp likely to abandon its deal to buy Countrywide Financial Corp. However, Bank of America said after the closing bell that it remained committed to acquiring Countrywide.

The Dow Jones industrial average fell 88.66 points, or 0.68%, to 12,969.54 on Monday, 5 May 2008. The Nasdaq Composite index fell 12.87 points, or 0.52%, to 2,464.12. The S&P 500 fell 6 points to 1,407.

Meanwhile, in a move that will help stock market investors and brokers use their margin funds efficiently, the Securities and Exchange Board of India (Sebi) on Monday, 5 May 2008, approved cross-margining across cash and derivatives segments. The Sebi circular also said that near-month stock futures positions would not be considered for cross-margin benefit three days prior to expiry (the last Thursday of every month).

The asset base of the Indian mutual fund industry increased by 7.32% during the month of April 2008. The mutual fund industry now has Rs 5,67,601.98 crore of assets under management.

High inflation remains the biggest concern for the Indian stock market. The measures taken by the Union government to control inflation have also added to uncertainty on corporate profit. Finance Minister P Chidambaram on Tuesday, 29 April 2008, said government will impose export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. He said the measures were being taken to improve domestic supplies and to moderate prices. The government has already banned export of cement and non-basmati rice.

Given that parliamentary elections are scheduled next year (in May 2009), the government may leave no stone unturned in its attempt to rein in inflation. This is bad news for commodity scrips like cement, steel etc.

In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review. While the central bank has mentioned price stability as its key priority, the overall undertone of the policy is not as hawkish as market had feared. The RBI governor Y V Reddy expects inflation to moderate in the next 2-3 months.

Good Q4 results March 2008 results and firm global markets, triggered a solid rebound in the Indian market over the past few days. Buying by domestic institutions has supported the market. From a recent low of 14,809.49 on 17 March 2008, the Sensex climbed 2,790.63 points or 18.84% to 17,600.12 on 2 May 2008.

The structural growth drivers of the Indian economy remain intact – India’s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India’s economy. Rating agency CRISIL in its latest outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver.

Another pointer to the fact that the long term India growth story remains intact is the outcome of the latest 2008 US-India Business Council (USIBC) survey, according to which, India is, and will continue to be, a premier destination for investment by US firms, with a large number of respondents rating future economic growth in India as highly sustainable.

Sensex drops 118 points on broad-based selling

The market took a sound beating today, as key indices buckled under relentless selling pressure, after exhibiting a volatile and weak trend in the first half. The Sensex, after opening marginally lower below its previous close at 17,44, turned positive and crossed the high 17,500 mark to touch an early high of 17,502. However, after witnessing sideways movement for a while, the market settled in negative territory and tumbled sharply in noon trades on the back of across-the-board selling pressure. The Sensex, which crashed to the day's low of 17,238 (down 253 points from the day's high), finally ended with losses of 0.67% or 118 points at 17,373. The Nifty, too, succumbed to heavy losses and dropped 48 points to close at 5,145.

The market breadth was negative. Of the 2,755 stocks traded on the BSE, 1,722 stocks declined, 965 stocks advanced and 68 stock ended unchanged.

BSE Reality index with losses of 4.63% was the major loser among the sectoral indices followed by BSE Power index (down 2.15%), BSE CG (down 1.80%), BSE HC index (down 1.41%), BSE PSU index (down 1.33%) and BSE Auto index (down 0.83%). However, BSE IT index bucked the downtrend and ended with gains of 1.53%, FMCG and Metal ended with marginal gains.

Bharti Airtel slumped 5.29% at Rs846.60, DLF tumbled 5.26% at Rs667.95, Jaiprakash Associates lost 5.15% at Rs271.90, Reliance Energy declined 4.92% at Rs1,442.30, BHEL lost 2.47% at Rs1,860.45, Larsen & Toubro shed 2.30% at Rs3,061.15 and Maruti Suzuki was down 2.23% at Rs766.90. Among other major laggards ACC, Mahindra, Reliance Communications, SBI, NTPC, Grasim Industries, Hindalco, Ranbaxy Laboratories, ICICI Bank, Tata Motors and Reliance Industries dropped around 1% each. However, Satyam Computer Services moved up 1.96% at Rs497.05 and ITC was marginally up at Rs224.90.

Rising crude oil prices in international market weighed on oil stocks. HPCL lost 3.95% at Rs254.10, IOC lost 1.97% at Rs476.70, BPCL dipped 1.68% at Rs395.25, Essar Oil slipped 1.55% at Rs284.95, RNRL shed 1.52% at Rs119.65, GAIL declined 1.14% at Rs437.60 and Reliance Petroleum was down 0.35% at Rs201.40.

Realty stocks lost ground on sustained selling pressure. Unitech dropped 7.21% at Rs307.05, HDFC shed 6.15% at Rs781.70, Omaxe lost 5.48% at Rs232 and DLF Systems slipped by 5.26% at Rs667.95. Ansal Infra, Peninsula Land, Parsvnath, Sobha Developers, Anant Raj, Puravankara, Indiabulls Realty and Akruti declined around 1-4% each. Select Power stocks also edged lower. GMR Infrastructure fell 5.08% at Rs157.80, Tata Power lost 4.49% at Rs1,331.75 and BHEL was down 2.47% at Rs1,860.45. Torrent Pharma, Suzlon Energy and NTPC were down around 1-2% each.

Over 1.74 crore RNRL shares changed hands on the BSE followed by IFCI (1.72 crore shares), Ispat Industries (1.50 crore shares), Tata Teleservices (1.19 crore Shares) and Reliance Petroleum (1.01 crore shares).

Elder Pharma, Nestle India, Purvankara, Allcargo Global

Elder Pharma, Nestle India, Purvankara, Allcargo Global

Trading Call - UCO Bank

Buy UCO Bank with stoploss of Rs 43 for a target of Rs 65.

Pre Session Commentary - May 6 2008

The Indian Market is likely to have a negative opening due to due to unfavoring cues from the global markets. On Monday, the Indian Market faced the heavy selling pressures towards the final trading hours of the session that led the market close on a sad note. The Indian market opened with marginal gains tracking the mixed cues from the global markets but the volatility gripped the market since the initial bell. Though the market got the momentum towards the mid session but was unable to sustain at the higher level and fell to close in negative. However, the investors showed some buying interest from the mid cap and small cap baskets. The BSE Sensex closed lower by 109.22 points at 17,490.90 and NSE Nifty fell by 35.95 points to close at 5,192.25. We expect that the market may choppy bound during the trading session.

On Monday, the US market closed in negative territory. The Dow Jones Industrial Average (DJIA) closed lower by 89.23 points at 12,968.97 along with S&P 500 fell by 6.41 points to close at 1,407.49 and NASDAQ dropped by 12.87 points to close at 2,464.12.

Indian ADRS closed in red. In technology sector, Patni Compuers fell by (4.51%) along with Infosys by (1.29%), Wipro by (1.25%) and Satyam by (0.99%). In banking sector, ICICI bank and HDFC bank dropped by (1.43%) and (0.73%) respetively. In telecommunication sector, Tata Comm and MTNL slipped by (5.10%) and (2.60%) respectively.

Today the major stock markets in Asia are trading lower. Hang Seng is trading down by 91.10 points at 26,092.85 along with Shanghai Composite trading lower by 67.81 points at 3,693.20 and Taiwan Weighted trading at 8,820.96 down by 16.11 points.

The FIIs on Monday stood as net buyer in equity while the net seller in debt. The gross equity purchased was Rs3,624.50 Crore and the gross debt purchased was Rs7.60 Crore while the gross equity sold stood at Rs2,904.60Crore and gross debt sold stood at Rs19.90 Crore. Therefore, the net investment of equity reported was Rs720.00 Crore and net debt was (Rs12.30 Crore).

Today, Nifty has support at 5,067 and resistance at 5,273 and BSE Sensex has support at 17,112 and resistance at 17,784.

Market may open lower

Local market are braced for lower opening mirroring weak trend in global markets. With results already declared from majority of the frontline corporates, the results season has almost come to an end. The near term trend is likely to be dictated by global cues.

Aggregate results of 1358 companies showed 17.40% rise in net profit on 22.40% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 28.60% rise in net profit on 23.80% rise in net sales in the year ended March 2008 over year ended March 2007.

Most Asian markets were trading lower today, 6 May 2008 led by financial companies, after Kookmin Bank and St. George Bank reported lower profit due to the credit markets crises. China's Shanghai Composite (down 1.80% at 3,693.20), Hang Seng (down 0.35% at 26,092.85), Taiwan's Taiwan Weighted (down 0.18% at 8,820.96), Singapore's Straits Times (down 0.22% at 3,240.76) edged lower. However, South Korea's Seoul Composite was up 0.13% at 1,850.59. Japanese markets are closed today on account of holiday.

US markets declined yesterday, 5 May 2008, with financial shares facing the maximum brunt on fears of Bank of America Corp likely to abandon its deal to buy Countrywide Financial Corp. Record oil prices above $120 a barrel also weighed on sentiment.

The Dow Jones industrial average fell 88.66 points, or 0.68%, to 12,969.54. The Nasdaq Composite index fell 12.87 points, or 0.52%, to 2,464.12. The S&P 500 fell 6 points to 1,407.

Back home, the 30-share BSE Sensex fell 109.22 points or 0.62% at 17,490.90 while the broader based S&P CNX Nifty slipped 35.95 points or 0.69% at 5192.25, on 5 May 2008.

As per provisional data, foreign funds sold shares worth a net Rs 236.81 crore yesterday, 5 May 2008. Domestic funds bought shares worth a net Rs 457.16 crore on that day.

Foreign institutional investors (FIIs) were net sellers of Rs 89.70 crore in the futures & options segment yesterday, 5 May 2008. They were net sellers of index futures to the tune of Rs 200.56 crore and bought index options worth Rs 382.48 crore. They were net sellers of stock futures to the tune of Rs 232.22 crore and sold stock options worth Rs 39.39 crore.

Light, sweet crude for June delivery rocketed to $120.36 on the New York Mercantile Exchange, hitting a new intraday record on a weaker US dollar, geopolitical tensions and supply concerns.

Meanwhile, in a move that will help stock market investors and brokers use their margin funds efficiently the Securities and Exchange Board of India (Sebi) on Monday, 5 May 2008, approved cross-margining across cash and derivatives segments. The Sebi circular also said that near-month stock futures positions would not be considered for cross-margin benefit three days prior to expiry (the last Thursday of every month).

The asset base of the mutual fund industry increased by 7.32% during the month of April 2008. The mutual fund industry now has Rs 5,67,601.98 crore of assets under management.

Market may remain cautious

The market is likely to remain cautious and witness sideways movement during intra-day trades. The flat closing of the US markets and weak start in the major Asian indices in the morning trades may trigger early selling in the domestic market. However, figures showing strong FII buying on Monday might lift the investor sentiment and lead to buying. On the technical side, the Nifty may get support at 5158 and test higher levels of 5230 whereas the Sensex may face resistance at 17650 and find support at 17345 level on the downside.

US indices finished on a negative note on Monday. The Dow Jones ended a tad lower at 12970, down 89 points, whereas the Nasdaq ended at 2464, down 13 points.

All the Indian ADRs ended at lower levels. VSNL led the pack with a loss of over 5% while Patni Computers declined 4.51%. Among the other losers, MTNL, Rediff, ICICI Bank, Tata Motors, Wipro and Infosys lost around 1% each. Satyam, Dr Reddy's Labs and HDFC Bank ended with marginal losses.

Crude oil prices in the US market edged higher, with the Nymex light crude oil for June delivery gaining $3.14 to close at $119.97 a barrel. In the commodity space, the Comex gold for June series flared up $16.10 to settle at $874.10 a troy ounce.

Morning Call - May 6 2008

Market Grape Wine :

In House :

Nifty at a support of 5160 and 5112 with a resist of 5235 and 5275

Cash:

Buy: Cipla above 215 tgt of 235 with a SL of 213

Buy: 3infotech above 127 tgt of 135 with aSL of 124

F&O:

Buy: Hcc above 141 tgt of 170 with a SL of 132

Buy: Union bank above 169 tgt of 180 with a SL of 164

Out House :

Markets at a support of 17373 & 17271 and resistance at 17591 & 17686 levels .

Buy : MRPL & REL

Buy : RIL

Buy : Unitech & HDIL

Buy : SBIN & Kotak

Buy : BombayDye

Buy : SKumar & Centextile

Buy : IFCI & Coreproject

Dark Horse : EssarOIL , Kotak , HDIL, CORE, REL , Jpasso & RPL

Todays Pick - Union Bank of India

We recommend a buy in Union Bank of India from a short-term perspective. From the charts of Union Bank of India, we see that the stock was on a medium-term down trend from Rs 230 to Rs 130 (between early January and mid March 2008).

However, the stock is in a steady up-move since this trough. During this up move, the stock penetrated the 21 and 50-day moving averages and it has been forming higher peaks and higher bottoms. The daily momentum indicator is on the verge of entering the bullish region. Besides the daily moving average convergence and divergence has entered the positive zone indicating bullishness.

Our short-term outlook for the stock is bullish. We anticipate the stock’s medium-term uptrend to continue to our price target of Rs 191 in the upcoming sessions. Investor with short-term perspective can buy the stock, while keeping the stop-loss at Rs 159 level.

Trading Calls - May 6 2008

Nifty (5192) Sup 5140 Res 5250

Buy Alstom Projects (624) SL 618
Target 638, 642

Buy GNFC (165) SL 161
Target 173, 175

Buy Voltas (190) SL 186
Target 198, 200

Sell Tata Power (1392) SL 1415, Target 1360, 1355

Sell PNB (530) SL 535
Target 520, 518

Bulls run out of gas…

The use of solar energy has not been opened up because the oil industry does not own the sun.

The bulls have been basking in the sunshine in recent times but as we have been reminding you, the concerns still remain. While inflation remains high, US oil futures crossed the $120 per barrel in New York for the first time on Monday amid supply concerns in Nigeria.

After a higher opening yesterday, the key indices lost ground in the afternoon to end marginally lower. The sell-off was restricted to the large caps. The BSE small-cap and mid-cap indices bucked the negative trend, rising by 0.3% and 0.85%, respectively. The breadth was positive mainly due to strength outside the Sensex and the Nifty. Volume of shares traded was also up from Friday, though the turnover was down.

The recent rally saw the Nifty bounce back above the 200 day moving average (DMA). Whether the Nifty stays above the 200 DMA level remains to be seen in the face of weak global cues.

We expect the market to open in the red owing to some softening across the globe. Thereafter things will be rangebound and sideways due to lack of triggers. Investors may cash out at every as there are still several concerns, like the health of the US economy, high commodity prices, rising local inflation, and moderation in economic growth as well as earnings expansion. One should adopt a stock centric approach and refrain from aggressive purchases.

FIIs were net sellers of Rs2.37bn (provisional) in the cash segment yesterday while the local institutions pumped in Rs4.57bn. In the F&O segment, they were net buyers of Rs897mn. On Friday, foreign funds were net buyers of Rs7.2bn in the cash segment. Mutual Funds were net sellers of Rs762mn on the same day.

Asahi India, DCB, Eveready Industries and Torrent Pharma will declare their results today.

Asian stocks declined for the first time in three days, led by financial companies, after Kookmin Bank and St. George Bank reported lower profit amid turmoil in credit markets. Kookmin and Shinhan Financial Group, South Korea's two largest banks, retreated after reporting lower net income.

St. George Bank, Australia's fifth-largest, dropped after posting its first profit decline in six years on higher bad debts. BHP Billiton advanced after crude oil prices surpassed a record $120 a barrel and copper futures gained.

The MSCI Asia Pacific excluding Japan Index lost 0.1% to 498.38 as of 9:29 a.m. in Hong Kong, halting a two-day, 2% rally. Financial shares fell 0.8%, the biggest decline among the regional benchmark's 10 industry groups.

Japan's markets are closed for a holiday. Australia's S&P/ASX 200 Index lost 0.7%. Benchmarks also retreated in China, New Zealand and Singapore.

US stocks slumped as oil prices touched a record $120 a barrel, Microsoft abandoned its Yahoo bid and analysts speculated that Bank of America could renegotiate or drop its proposed deal to buy Countrywide Financial.

Macy's led chain stores to their biggest decline in five weeks after crude jumped above $120 a barrel. Yahoo slid 15% as analysts advised selling the shares. Lower-than-forecast earnings at Warren Buffett's Berkshire Hathaway sent 22 of 24 insurance companies in the S &P 500 Index lower.

The S&P 500 dropped for the first time in three days, losing 6.41 points, or 0.5%, to 1,407.49. The Dow Jones Industrial Average decreased 88.66 points, or 0.7%, to 12,969.54. The Nasdaq Composite Index slipped 12.87 points, or 0.5%, to 2,464.12.

Market breadth was negative. Four stocks retreated for every three that rose on the New York Stock Exchange.

After a strong April and start to May, Wall Street was hit with the possible dissolution of several big proposed mergers, raising worries about the health of Corporate America amid the economic slowdown.

Microsoft said on Saturday that it was abandoning its sweetened deal for Yahoo and would not pursue a hostile takeover. The talks fell apart over the weekend after Yahoo rejected Microsoft's higher offer.

Wall Street also worried about the outlook for Bank of America's proposed $4 billion bid for Countrywide Financial after two brokerage firms hinted that the deal could either fall through or may get done at a lower price. BofA shares fell 2% and Countrywide shares lost over 10%.

Investors also reacted to record oil prices above $120 a barrel and a retreat in the dollar after the greenback had showed some strength last week.

Stocks briefly rose following the morning release of the April ISM services sector index, which rose to 52 from 49.6 versus forecasts for a drop to 49.1. A reading over 50 indicates expansion in the sector.

US light crude oil for June delivery jumped $3.65 to set a settlement record of $119.97 per barrel in New York. Oil - which was up on renewed supply concerns - touched an intraday record of $120.30 a barrel earlier, the first time it has surpassed the $120 mark.

The national average price for a gallon of regular unleaded gas slipped to $3.611 from the previous day's price of $3.614, according to AAA. Last week, gas prices hit a record of $3.623, after hitting all-time highs for 17 straight days.

COMEX gold for June delivery rose $16.10 to $874.10 an ounce. The dollar fell versus the euro after rising against it over the past week. The greenback also slipped versus the yen. Treasury prices dipped, raising the yield on the benchmark 10-year note to 3.86% from 3.85% late on Friday.

Markets may consolidate

Firm global cues coupled with buying momentum in the early trades lifted the markets to start off on a positive note. However, after trading in green for major part of the day, Sensex pared most of its gains in the last hour of the trading session led by selling pressure in the Auto, IT and the Telecom stocks.

On the other hand, bucking the negative trend were the Small-Cap, Mid-Cap and select Realty stocks. Both the Mid-Cap and the Small-Cap indices added half a percent each. Finally, the BSE benchmark Sensex ended 109 points lower to close at 17,490 and the Nifty index lost 35 points to close at 5,192.

Overall about 1,634 stocks advanced; 1,104 stocks declined while 38 stocks remained unchanged. Among the 50-Nifty 39 stocks ended in red and 11 stocks ended in green.

Among the BSE Sectoral indices, BSE Consumer Durable index (down 2.2%), BSE IT index (down 1%) and BSE Teck index (down 1%). The BSE Mid-Cap index was the leading gainer (up 0.85%), others like BSE Realty and Pharma indices added nearly half a percent each.

UCO Bank rallied by over 13% to Rs50 after the company announced that its Q4 net profit at Rs859.9mn (up 178%) and Q4 Int. Income at Rs17.8bn (up 22.7%). The scrip touched an intra-day high of Rs51 and a low of Rs44 and recorded volumes of over 65,00,000 shares on BSE.

JSW Steel slipped by 2% to Rs898. The company announced its Q4 net profit at Rs4.61bn (up 11.6%) and net sales at Rs41.9bn (up 67.66%). The scrip touched an intra-day high of Rs931 and a low of Rs883 and recorded volumes of over 1,00,000 shares on BSE.

Century Textile was down by over 3.5% to Rs842. The company announced its FY08 net profit at Rs2.79bn (up 2.1%) and FY08 revenue at Rs35.1bn (up 9.3%). The scrip touched an intra-day high of Rs879 and a low of Rs826 and recorded volumes of over 4,00,000 shares on BSE.

L&T edged lower by 0.2% to Rs3133. The company announced that it secured Rs3.44bn transmission line orders from Power Grid. The scrip touched an intra-day high of Rs3262 and a low of Rs3112 and recorded volumes of over 3,00,000 shares on BSE.

Bharti Airtel ended at Rs893 losing half a percent. India's largest mobile-phone operator may bid for South Africa-based MTN Group Ltd, reports said. There were also reports stating that Bharti Airtel formed a joint venture with IFFCO to offer customized mobile services to farmers. The scrip touched an intra-day high of Rs909 and a low of Rs896 and recorded volumes of over 5,00,000 shares on BSE.

TTML advanced by 5% to Rs37 after reports stated that the company plans to invest around Rs1.65bn in Gujarat on expansion. The company plans major expansion in the rural areas of the state.

To improve the network, the company will also be using the investment to set up more number of base stations in Gujarat. Currently it has 700 base stations in Gujarat and by the end of the financial year, the company intends to take the number to 1,000-odd," report added. The scrip touched an intra-day high of Rs38 and a low of Rs35 and recorded volumes of over 1,00,00,000 shares on BSE.

IVRCL Infrastructure advanced by over 4% to Rs467 after the company announced that it secured order worth Rs4.69bn. The scrip touched an intra-day high of Rs493 and a low of Rs448 and recorded volumes of over 5,00,000 shares on BSE.

A leading infrastructure project development company C&C Constructions gained by over 2% to Rs224 as the company was awarded Rs3.44bn project for the rehabilitation and construction of the Gardez Khost Road in Afghanistan. This will be the company’s single largest order received in Afghanistan. The Company had previously bagged an EPC contract worth Rs5.74bn from JP Associates for the construction of a road from Zirakpur to Parwanoo in north India. The scrip touched an intra-day high of Rs234 and a low of Rs209 and recorded volumes of over 55,000 shares on BSE.

Ram Informatics was frozen at 20% upper circuit to Rs17.90 after the company announced that it received an order from Chief Electoral Officer, Government of Andhra Pradesh for Election Photo Identity Cards for the district of Srikakulam. The scrip touched an intra-day high of Rs17.90 and a low of Rs16 and recorded volumes of over 1,00,000 shares on BSE.

ACC edged higher by 0.5% to Rs757. The company announced its April cement sales at 1.73mn tons (down 0.57%). However, its April cement output rose 1.1% to 1.79mn ton. The scrip touched an intra-day high of Rs769 and a low of Rs749 and recorded volumes of over 91,000 shares on BSE.

Corporate News

Bharti Airtel is in talks to acquire South Africa’s MTN. (ET)
State Bank of India has hiked the interest rates on FCNR (B) deposits in different currencies and on NRE (rupee) term deposit across varying maturities, with effect from May 1, 2008. (BL)
The Supreme Court has directed Reliance Industries to pay Rs500mn within two weeks to BPCL for the price difference in naphtha supplied by BPCL to RIL plant in Raigad. (DNA)
Nineteen companies, including Welspun India, Bombay Dyeing and Alok Industries, have expressed interest to form joint ventures to run government-owned National Textiles Corporation's (NTC) 12 mills. (BS)
Patel Engineering has bagged the US$280mn Taum Sauck Upper Reservoir Dam reconstruction project in USA. (ET)
Leela Hotels has acquired seven acres of land near the Taj Mahal for building a five star deluxe hotel with 300 rooms. (ET)
M&M to set up a tractor plant in Tamil Nadu to make 50,000 tractors a year. (Mint)
L&T plans to look for orders for constructing passenger cruise ships at its proposed facility at Kattupalli in Tamil Nadu. (Mint)
Sesa Goa has stepped up efforts to expand and add iron ore prospecting and mining leases as also increase third party mining opportunities. (BL)
To overcome the rise in raw material cost, JSW Steel has been scouting for more mine ores even as many of them will go on stream by end of 2009. (BL)
VF Corp looking to buy out 40% stake held by Arvind Mills in Indian JV VF-Arvind brands. (ET)
Ranbaxy is set to fight a prolonged battle with the Government and NPPA for fixing price of one of its key antibiotic brands. (ET)
Perlecan Pharma, the integrated drug development company set up by Dr. Reddy’s has dropped second more new drug plan. (DNA)
Punj Lloyd is looking to divest its stake in its telecom and broadband business, Spectranet. (Mint)
ADAG is planning to apply for modernization project of Prague airport, for which bids are shortly to be invited. (BS)
Sterling Urban Developments, a joint venture floated by HDFC Property Fund and Bangalore-based Sterling Developers will take up development of 150 acres in Whitefield at a cost of Rs40bn. (BS)
Union Bank of India and Indian Overseas Bank have increased interest rates on short-term deposits to raise resources and manage asset-liability mismatch. (BS)
Siemens AG, Europe’s largest engineering conglomerate, is looking to set up a manufacturing unit in Andhra Pradesh to manufacture steam turbines and generators needed for the power sector. (BL)
Coal India is looking to partner with private sector companies such as Reliance Power to acquire coal blocks overseas. (Mint)
UCO Bank has received Government approval for capital restructuring. (BL)
Kesoram Industries has lined up Rs8.4bn expansion programme at its Uttarakhand tyre complex. (BS)
UTV Software Communications will invest Rs8bn in its businesses in FY09. (DNA)
American formal wear giant Hartmarx is inking a deal with Arvind Mills for tapping India’s premium-to-luxury segment. (ET)
Finolex Industries plans to sell off its SEZ land in Pune for Rs4bn. (DNA)
Secondary steel makers including Bhushan Steel and Uttam Galva, have decided to cut the prices of cold-rolled coils and galvanized sheets by ~Rs500/ton. (ET)
HPCL officers to go on indefinite nationwide strike starting May 6, 2008. (ET)
Reliance Infra, an ADAG company, is set to begin work on the country’s first greenfield central business district. (BL)
HCL Infosystems has acquired Jaipur-based niche banking software product firm, Natural Technologies for Rs83.9mn. (ET)
NDTV Imagine is entering movie production business and its first project is likely to go on floor in two to three months. (BL)
BNP Paribas and Geojit Financial Services have worked out a plan to overcome the regulatory hurdle that has come in the way of the French banking group picking up the majority stake in the Kerala-based broking firm. (BL)
Murugappa group intends to spend Rs13bn on capacity expansions in 2008-09. (BL)
The Hinduja’s are planning investments of ~US$50bn in the next five years in India and abroad. (DNA)
Nirmal Lifestyle is in talks with PE funds to raise US$800mn. (ET)
Aircel plans to raise US$1.6bn debt and to come out with an IPO in a year. (ET)
Genpact, a pioneer in the actuarial process outsourcing (APO) business, which has been largely dependent on the US and UK has tapped five insurance clients in Australia. (FE)
Maxis Communications, Malaysia plans to invest US$4-5bn by 2009-10 to expand its network in India. (DNA)
Generic Electric is planning to manufacture windmills and gas turbines in India. (ET)
Bangalore-based Manipal Health Systems has plans to build a 200-bed to 250-bed hospital in Mysore. (BS)
Shell is closing down temporarily 15 of its retail outlets in south India from May 7, 2008. (BS)
Nissan Motor will soon launch its premium SUV Murano in India. (ET)

Bullions glitter on crude rise

All time high crude price pulls up precious metals

A new all time high crude price pulled up bullion metals today, Monday, 05 May, 2008. With today, bullion metals went up for two straight days. On the other hand, dollar also weakened despite a strong non-manufacturing Institute if Supply Management’s report. Silver prices also rose for the day.

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. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

Comex Gold for June delivery rose $16.1 (1.9%) to close at $874.1 ounce on the New York Mercantile Exchange. During intra day trading, prices touched a high of $874.8. Last week, gold prices lost $32 (3.6%) against previous week’s close. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce.

This year, gold prices have gained 4.5% for the till date against a 9% drop for the dollar against the euro. For April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.

Comex Silver futures for July delivery rose 36 cents (2%) to $16.83 an ounce. Silver has gained 13% in 2008 till date. For April, it closed lower by 5.5%. Silver gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.

On the currency markets today, the U.S. dollar weakened even after a report from the Institute for Supply Management showed that nonmanufacturing sectors of the U.S. economy expanded during April after three months of contraction. The dollar index, which tracks the performance of the greenback against a basket of currencies, was down 0.4% to 73.19.

The ISM nonmanufacturing index rose to 52.0% from 49.6% in March. The increase was unexpected.

In the energy market today, crude prices ended near about $120/barrel due to supply disruptions at Nigeria.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.

At the MCX, gold prices for June delivery closed higher by Rs 157 (1.4%) at Rs 11,464 per 10 grams. Prices rose to a high of Rs 11,473 per 10 grams and fell to a low of Rs 11,320 per 10 grams during the day’s trading.

At the MCX, silver prices for May delivery closed Rs 303 (1.4%) higher at Rs 22,2029/Kg. Prices opened at Rs 22,210/kg and went to a high of Rs 22,501/Kg during the day’s trading.

All time high for Crude

In the past two sessions, crude prices go up by almost $7

Crude prices rose by more than $3 once again on Monday, 05 May, 2008. Price rose due to supply problems once again emerging at Nigeria. The weak dollar also pushed up the crude price today. It touched a new high of $119.97/barrel today during intra day trading and closed a little short of $120/barrel for the day.

Crude-oil futures for light sweet crude for June delivery closed at $119.97/barrel (higher by $3.65/barrel or 3.1%) on the New York Mercantile Exchange. In the past two sessions, crude prices have gone up by almost $7. Before today, last Monday, 28 April, 2008, prices touched a historic high of $119.9/barrel. For the year, crude is up by 23.7% till date.

On the currency markets today, the U.S. dollar weakened even after a report from the Institute for Supply Management showed that nonmanufacturing sectors of the U.S. economy expanded during April after three months of contraction. The dollar index, which tracks the performance of the greenback against a basket of currencies, was down 0.4% to 73.19.

The ISM nonmanufacturing index rose to 52.0% from 49.6% in March. The increase was unexpected.

Nigeria's rebel group Movement for the Emancipation of the Niger Delta, MEND, attacked a Shell oil flow station in the south of the country last weekend. Shell is a unit of Royal Dutch Shell. In recent months, MEND has claimed responsibility for a series of attacks on oil facilities in the Niger Delta.

June natural gas climbed 40 cents to end at $11.18 per million British thermal units.

Against this backdrop, June reformulated gasoline gained 8.65 cents to end at $3.0529 a gallon, while June heating oil rose 8.78 cents to finish at $3.3065 a gallon.

Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.

At the MCX, crude oil for May delivery closed at Rs 4,857/barrel, higher by Rs 127 (2.7%) against previous day’s close. Natural gas for July delivery closed at Rs 454/mmbtu, higher by Rs 15.1/mmbtu (3.4%).

Unitech, DLF May 2008 futures at premium

Turnover in F&O segment declines

Nifty May 2008 futures were at 5205.10, at a premium of 12.85 points as compared to spot closing of 5192.25.

The NSE's futures & options (F&O) segment turnover was Rs 32,972.85 crore, which was lower than Rs 36,304.41 crore on Friday, 2 May 2008.

Unitech May 2008 futures were at premium at 333.80 compared to the spot closing of 330.65.

DLF May 2008 futures were at premium at 707 compared to the spot closing of 705.15.

Tata Steel May 2008 futures were near spot price at 803 compared to the spot closing of 803.90.

In the cash market, the S&P CNX Nifty lost 35.95 points or 0.69% at 5192.25.

Aditya Birla Nuvo, Cement Sector

Aditya Birla Nuvo, Cement Sector

UTV Software

UTV Software

Gokul Refoils and Solvent IPO Analysis

Promoted by Balvantsinh Rajput, Kanubhai Thakkar, Mrs. Bhikiben Rajput and Mrs. Manjulaben Thakkar in 1982, Gokul Refoils and Solvent extracts solvents; refines edible oils, castor oils and their derivatives; and manufactures vanaspati.

Besides 680-tonne-per-day (tpd) seed-processing capacity, Gokul Refoil and Solvent has 600- tpd of solvent-extraction, 1,200-tpd of refining, and 200-tpd of vanaspati manufacturing facility. The company gets captive power from four windmills of 1.25 MW each in Kutch, Gujarat. It has also set up a co-generation power plant of 500 KWH at its Gandhidham unit in Gujarat.

To expand the scale of operations and have a global presence, Gokul Refoils and Solvent has set up two wholly owned subsidiaries in Mauritius and Singapore: Maurigo International Ltd and Maurigo Pte Ltd. The Mauritius subsidiary, Maurigo International, is involved in commodity trade on the Chicago Board of Trade and the Malaysia Derivatives Exchange (MDEX),Kula Lumpur, Malaysia. The Singapore subsidiary, Maurigo Pte, procures raw material and trades in commodity. Its strategic presence in Singapore enables it to locally negotiate and deal with the small and fragmented oil suppliers of Malaysia and Indonesia, which will enable the company to procure raw materials at reasonable terms.

Products are marketed under the brand name, Gokul, in Gujarat, Maharashtra, Rajasthan, Madhya Pradesh and Punjab.

Gokul Overseas is a partnership firm manufacturing and processing castor seeds and oil and their derivatives with plant at the Kandla Special Economic Zone (KASEZ). This partnership firm has reported sales of Rs 205 crore and net earning of Rs 8.59 crore in the financial year ending March 2007 (FY 2007).

Consolidated net sales stood at Rs 1323.20 crore and Rs 1563.46 crore in the eight months ended November 2007 and FY 2007. Operating profit margin (OPM) was 6.5% and 3.8%, and net profit Rs 41.83 crore and Rs 25.73 crore.

Standalone net sales stood at Rs 1309.28 crore and Rs 1562.49 crore in the eight months ended November 2007 and FY 2007. OPM was 6.3% and 3.9%, and net profit Rs 37.82 crore and Rs 26.94 crore.

A soya processing plant, with installed capacity of 1500 tpd and capital investment of Rs 51 crore, is proposed at Gandhidham, Gujarat. The existing edible oil refinery at Surat is being expanded to 400 tpd from 100 tpd, with an estimated outlay of Rs 12.31 crore. About Rs 15 crore is to be invested in brand building, Rs 10 crore to increase the warehousing capacity and meet other capital expenditure at existing units, and Rs 60.69 crore to fund part of long-term working capital. Rs 139.59 crore is to be raised at the cap price of the price band, and Rs 38.25 crore will be taken on loan from banks.

Strengths

Versatile manufacturing capabilities, giving extreme flexibility to manufacture all type of oils depending on the market requirement and availability of raw materials at competitive rates.

Weakness

Earnings are vulnerable to changes in the duty differential between crude and refined oil.

The business is characterised by inherently low margin.

Has negative cash flow fof Rs 5.39 crore from operating activity in FY 2007, Rs 21.18 crore in FY 2006 and Rs 18.91 crore in FY 2004.

Primarily present in the bulk market, where there are strong competitive pressures from the unorganised segment.

Valuation

Gokul Refoils and Solvent has set a price band of Rs 175 to Rs 195 per equity share of Rs 10 face value. At the lower band of Rs 175 per share, the P/E would be 7.4x times annualised EPS of Rs 23.8 for the November 2007 ended period and 17.9x times the EPS of Rs 9.8 for FY 2007 on post-issue equity of Rs 26.38 crore. At the upper band of Rs 195 per share, the P/E would be 8.2x times and 19.9x times respectively. In the edible oil industry, the comparable companies such as Ruchi Soya Industries, Gujarat Ambuja Exports, and K S oils have TTM P/E of around 12.6, 9.3 and 21.3, respectively.

via CM