Incentives galore from real estate developers

Smarting under a correcting realty market and sluggish buying sentiments, real-estate players are scrambling to raise end-user demand through offers that promise to ease EMI burden until possession.

So, while realty companies including Parsvnath Developers are publicising ‘No EMI until possession’, others such as BPTP and Gaursons are offering two-year EMI holiday on specific projects.

“For those who are currently living on rent, the scheme makes sense as the EMI burden kicks-off only after possession,” says Mr Amit Raj Jain, Vice-President (Marketing) of BPTP. BPTP’s group housing project, ‘Resort’, in Faridabad offers a two-year ‘Pre-EMI interest’ to the bank on behalf of buyers.

Parsvnath’s Sonepat project, ‘Parsvnath Preston’, reimburses the EMIs paid prior to possession. “Such value-addition is gaining popularity as the customer is motivated to make the down payment and can then relax till possession. From the point of view of the developer, it ensures timely completion of the project as the fund flow is assured,” Dr B.P. Dhaka, COO, points out.

KDP Infrastructure has advertised ‘No pre-EMI for 18 months’ upon payment of 15 per cent of the booking amount on its ‘Grand Savanna’ project in Ghaziabad; Gaursons India makes a ‘No EMI up to 24 months’ offer to buyers of ‘Gaur Grandeur’ at Noida; and JMD Gardens’ project in Gurgaon promises that EMI payment would start ‘only after Grah Pravesh’.

Market observers point out that such offers provide an edge to the developer as well. “If the builder raises the money from the market to complete the project, he would avail himself of the funds at about 15-20 per cent interest rate, whereas in this case he gets assured booking at 10.5 per cent, which is the applicable rate for home loan borrowers,” says PNB Housing Finance MD, Mr V.K. Khanna.

via BL

Rupee weakens past 42 per dollar

Ends at 42.05/06

Rupee weakened past 42 per dollar for the first time in more than a year on Monday after data showing factory output grew at its slowest in six years raised concerns about a slowdown in the economy.

Rupee ended at 42.05/06 per dollar, more than 1 percent down from Friday's close of 41.60/61. It has fallen 3.4 percent since May 2 to its lowest since April 2007.

Nifty May 2008 futures at premium

Turnover in F&O segment surges

Nifty May 2008 futures were at 5026.90, at a premium of 14.25 points as compared to spot closing of 5012.65.

The NSE's futures & options (F&O) segment turnover was Rs 41000.80 crore, which was higher than Rs 34951 crore on Friday, 9 May 2008.

Essar Oil May 2008 futures were at premium at 265.40 compared to the spot closing of 260.40.

Cairn India May 2008 futures were at premium at 303.55 compared to the spot closing of 301.75.

Infosys Technology May 2008 futures were at discount at 1755 compared to the spot closing of 1773.40.

In the cash market, the S&P CNX Nifty gained 30.05 points or 0.60% at 5012.65.

IIP acceptable says Ahluwalia

Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia on Monday said that industrial growth figures for 2007-08 were within the acceptable range, even as economists opined that 3 percent growth in March was below expectations.

Commenting on the Index Of Industrial Production (IIP) figures for 2007-08 released by the government, Ahluwalia said "there was an estimate of 8-8.5 percent. The lower end of the range is acceptable".

The industrial growth during 2007-08 dipped to 8.1 percent, down from 10.4 percent recorded during the previous fiscal.

The IIP for March 2008, however dipped to 3 percent from 14.8 percent in the corresponding period last year, the lowest level in any month since February 2002 when the industrial growth recorded an increase of 2.4 percent.

The March numbers "are below expectations", said Crisil principal economist, D K Joshi, adding "industrial growth is trending down as economic expansion moderates".

NCAER senior fellow Shashank Bhede hoped, "there would be revival in the coming months. However, the number for the whole year is slower than the last year".

Pointing out that high inflation rate was taking toll on industrial production, Assocham president, Venugopal N Dhoot said, "input cost for manufacturing substantially increased and higher fuel costs augmented transportation costs. The combination proved lethal for industrial production".

The government, Dhoot said, should encourage growth of infrastructure sector as the industrial slowdown would have implications for the economic growth in the current financial year.

NSE Bulk Deals to Watch - May 12 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
12-MAY-2008,AZTECSOFT,Aztecsoft Limited,MINDTREE CONSULTING LIMITED,BUY,303000,73.55,-
12-MAY-2008,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,BUY,127471,47.95,-
12-MAY-2008,STEELTUBES,Steel Tubes of India Ltd,NIRANJAN TULSI SAHA,BUY,102500,4.48,-
12-MAY-2008,IBSEC,Indiabulls Securities Lim,CLSA (MAURITIUS) LIMITED,SELL,3180396,110.15,-
12-MAY-2008,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,SELL,110820,47.74,-
12-MAY-2008,STEELTUBES,Steel Tubes of India Ltd,NIRANJAN TULSI SAHA,SELL,52500,4.16,-

BSE Bulk Deals to Watch - May 12 2008

Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
12/5/2008 532975 AISHWARYA TE SANJAY D MIRANI B 96500 88.92
12/5/2008 532975 AISHWARYA TE AMBIT SEC BROK PVT LTD B 565032 88.70
12/5/2008 532975 AISHWARYA TE V J PATEL INVESTMENT B 142402 87.95
12/5/2008 532975 AISHWARYA TE GOPAL TRADERS B 138050 80.95
12/5/2008 532975 AISHWARYA TE KASHISH FINSTOCK B 347000 84.78
12/5/2008 532975 AISHWARYA TE SHAILESH M. NISSAR B 635142 92.43
12/5/2008 532975 AISHWARYA TE VINAY JAIN B 100000 90.00
12/5/2008 532975 AISHWARYA TE V K OBEROI HUF B 142579 95.79
12/5/2008 532975 AISHWARYA TE PUJA TAPARIA B 64619 88.71
12/5/2008 532975 AISHWARYA TE BHAVESH PRAKASH PABARI B 227091 93.82
12/5/2008 532975 AISHWARYA TE SANDEEP S SABOO B 100000 87.79
12/5/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. B 866634 90.05
12/5/2008 532975 AISHWARYA TE KIRAN A. MITTAL B 115000 94.19
12/5/2008 532975 AISHWARYA TE PRUTHVI BROKERS AND SHARE HOLDING PVT LTD B 55000 98.95
12/5/2008 532975 AISHWARYA TE N D NISSAR B 998309 88.70
12/5/2008 532975 AISHWARYA TE N C JAIN B 103075 90.22
12/5/2008 532975 AISHWARYA TE HEEMANSHU BANSOD B 111000 93.74
12/5/2008 532975 AISHWARYA TE DIPAK R RATHOD B 137000 81.93
12/5/2008 532975 AISHWARYA TE NARENDRASINH V. GOHIL B 65000 95.54
12/5/2008 532975 AISHWARYA TE MAHENDRAKUMAR JETHALAL PATEL B 82000 92.05
12/5/2008 532975 AISHWARYA TE RINKESH V SHAH B 70000 96.00
12/5/2008 532975 AISHWARYA TE NIRMALABEN CHHATRABHUJ SHAH B 95000 87.87
12/5/2008 532975 AISHWARYA TE LATIN MANHARLAL SEC PVT LTD B 528855 90.65
12/5/2008 532975 AISHWARYA TE AMIT M GALA B 778533 91.32
12/5/2008 532975 AISHWARYA TE H.J.SECURITIES PVT.LTD. B 258578 86.77
12/5/2008 532975 AISHWARYA TE MIHIR AGENCIES PRIVATE LTD B 419445 97.86
12/5/2008 532975 AISHWARYA TE MAHASAGAR SECURITIES PVT LTD B 114000 92.44
12/5/2008 532975 AISHWARYA TE ALPHA CHEMIE TRADE AGENCIES B 573345 86.41
12/5/2008 532975 AISHWARYA TE BHANDARI KALPESH MANMOHAN B 443482 94.71
12/5/2008 532975 AISHWARYA TE NAVEEN TAPARIA B 76031 90.41
12/5/2008 532975 AISHWARYA TE SUDESH JAIN B 127000 90.36
12/5/2008 532975 AISHWARYA TE ASTUTE COMMODITIES AND DERIVATIVES PVT LTD B 128100 93.67
12/5/2008 532975 AISHWARYA TE VINAY JAIN B 60000 98.86
12/5/2008 532975 AISHWARYA TE AMU SHARES AND SEC LTD B 110899 87.99
12/5/2008 532975 AISHWARYA TE MUKESH SHAH B 601800 90.67
12/5/2008 532975 AISHWARYA TE SANJAY D MIRANI S 96500 88.80
12/5/2008 532975 AISHWARYA TE AMBIT SEC BROK PVT LTD S 565032 88.74
12/5/2008 532975 AISHWARYA TE V J PATEL INVESTMENT S 70000 98.87
12/5/2008 532975 AISHWARYA TE KASHISH FINSTOCK S 196947 91.27
12/5/2008 532975 AISHWARYA TE SHAILESH M. NISSAR S 635142 92.51
12/5/2008 532975 AISHWARYA TE V K OBEROI HUF S 130579 94.73
12/5/2008 532975 AISHWARYA TE PUJA TAPARIA S 64619 88.21
12/5/2008 532975 AISHWARYA TE BHAVESH PRAKASH PABARI S 127091 98.38
12/5/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. S 866634 90.18
12/5/2008 532975 AISHWARYA TE KIRAN A. MITTAL S 115000 99.28
12/5/2008 532975 AISHWARYA TE PRUTHVI BROKERS AND SHARE HOLDING PVT LTD S 55000 97.49
12/5/2008 532975 AISHWARYA TE N D NISSAR S 998309 88.79
12/5/2008 532975 AISHWARYA TE N C JAIN S 103075 89.91
12/5/2008 532975 AISHWARYA TE HEEMANSHU BANSOD S 111000 93.28
12/5/2008 532975 AISHWARYA TE DIPAK R RATHOD S 118500 92.02
12/5/2008 532975 AISHWARYA TE NARENDRASINH V. GOHIL S 65000 82.26
12/5/2008 532975 AISHWARYA TE MAHENDRAKUMAR JETHALAL PATEL S 79000 93.58
12/5/2008 532975 AISHWARYA TE RINKESH V SHAH S 70000 96.75
12/5/2008 532975 AISHWARYA TE NIRMALABEN CHHATRABHUJ SHAH S 95000 87.65
12/5/2008 532975 AISHWARYA TE LATIN MANHARLAL SEC PVT LTD S 528407 90.78
12/5/2008 532975 AISHWARYA TE AMIT M GALA S 778533 91.32
12/5/2008 532975 AISHWARYA TE H.J.SECURITIES PVT.LTD. S 258578 86.80
12/5/2008 532975 AISHWARYA TE MIHIR AGENCIES PRIVATE LTD S 489618 89.57
12/5/2008 532975 AISHWARYA TE MAHASAGAR SECURITIES PVT LTD S 64000 97.31
12/5/2008 532975 AISHWARYA TE ALPHA CHEMIE TRADE AGENCIES S 273345 100.15
12/5/2008 532975 AISHWARYA TE BHANDARI KALPESH MANMOHAN S 443482 93.89
12/5/2008 532975 AISHWARYA TE NAVEEN TAPARIA S 76031 91.21
12/5/2008 532975 AISHWARYA TE SUDESH JAIN S 87000 95.35
12/5/2008 532975 AISHWARYA TE ASTUTE COMMODITIES AND DERIVATIVES PVT LTD S 122095 93.49
12/5/2008 532975 AISHWARYA TE AMU SHARES AND SEC LTD S 110899 88.10
12/5/2008 532975 AISHWARYA TE MUKESH SHAH S 601800 90.90
12/5/2008 509728 BHURUKA GAS SATAYANARAYAN AGARWAL S 140000 18.48
12/5/2008 509475 BOMBAY PAINT RAJASHREE N. MEHTA B 15000 89.56
12/5/2008 509475 BOMBAY PAINT NAIMISH J MEHTA B 15577 89.07
12/5/2008 509475 BOMBAY PAINT NAIMISH J MEHTA HUF B 9000 89.85
12/5/2008 509475 BOMBAY PAINT RAJIV ARORA B 27158 90.30
12/5/2008 509475 BOMBAY PAINT RAJIV ARORA S 35788 91.64
12/5/2008 509475 BOMBAY PAINT RAJASHREE N. MEHTA S 15000 89.75
12/5/2008 509475 BOMBAY PAINT NAIMISH J MEHTA S 17084 90.28
12/5/2008 509475 BOMBAY PAINT NAIMISH J MEHTA HUF S 9000 89.70
12/5/2008 590061 BRUSHMAN IND JRK CONSULTANTS PVT LTD B 100000 110.00
12/5/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI S 31925 22.00
12/5/2008 532081 K SERA SERA EDELWEISS ESTATES PRIVATE LIMITED B 575844 30.11
12/5/2008 532081 K SERA SERA EDELWEISS ESTATES PRIVATE LIMITED S 630294 30.05
12/5/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 65500 21.24
12/5/2008 531219 POONAM PHARM ANUSHREE TRADE LINK PVT LTD B 100000 3.62
12/5/2008 531273 RADHE DEVELO DEDHIA HARSHIKA VIPUL B 53995 164.83
12/5/2008 531273 RADHE DEVELO SHYAM RAMBHAI PATEL S 79125 161.53
12/5/2008 531312 SANRA SOFTW AYODHAPATI INVESTMENT PVT LTD B 34581 76.06
12/5/2008 531312 SANRA SOFTW AYODHAPATI INVESTMENT PVT LTD S 36483 77.89
12/5/2008 504375 SOFTBPO GLOB LALCHAND SURJI GADA B 1000 238.44
12/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD B 225302 706.50
12/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD S 225302 707.39
12/5/2008 531703 TRIBHVAN HSG SOMNATH PRASAD PATIL S 32000 59.46
12/5/2008 532765 USHER AGRO MUKESH G KONDE B 151501 141.88
12/5/2008 532765 USHER AGRO MUKESH G KONDE S 151501 141.61
12/5/2008 511147 WALL STREE F WALL STREET CONSTRUCTION LTD B 3836798 41.00
12/5/2008 511147 WALL STREE F A S PATEL S 3836798 41.00

Post Session Commentary - May 12 2008

The recovery in the Asian markets led the domestic market to made a smart recovery towards the final trading hours of the session despite of the poor growth in industrial production figures. India''s industrial production growth has sinked to 3% in March 2008 from 14.8% a year ago. The investors showed some positive attitude towards the end in buying that led the Indian market to close in green. The Indian markets opened weak with the benchmark index slipping over 100 points, on the back of weak global cues and its again drifts down backed by sharp fall in industrial production that led to the negative sentiments to prevail in the market. However, market made a smart turn around towards the end to close with marginal gains. From the sectoral front, the reality stocks were not in favour. As against Friday’s results, today oil and gas stocks were in limelight as most of the buying was seen from this basket. The market breadth was negative as 1,777 stocks closed in red while 920 stocks closed in green.

The BSE Sensex closed higher by 123.83 points at 16860.90 and NSE Nifty went up by 30.05 points to close at 5,012.65. The BSE Mid Caps and Small Cap closed lower by 46.75 points and 102.08 points at 6,975.91 and 8,403.56 respectively.

Losers from the BSE are Grasim Industries Ltd (3.61%), Jai Prakash Associates (1.95%), Mahindra & Mahindra Ltd (1.46%), ACC Ltd (1.45%), DLF Ltd (1.35%), HUL (1.32%), SBI (0.74%) and Bharti Airtel (0.47%).

Gainers from BSE are Ranbaxy Lab (5.27%), Satyam Computers (3.41%), ITC Ltd (2.52%), Housing Development Finance Co. (2.03%), Reliance Comm Ltd(2.01%) and Reliance Energy (1.88%).

The Realty index closed lower by 154.19 points at 7,736.91. Losers are Indiabulls Real (4.17%), Puravankara (3.54%), Penland Ltd (3.01%), Unitech Ltd (2.55%), Sobha Dev (2.31%), and Parsvnath (2.05%).

The Auto index closed down by 35.56 points at 4,688.31. Losers are Bharat Forge (3.71%), MRF Ltd (3.40%), Apollo Tyre (2.41%), Bosch Ltd (1.91%), Cummins India (1.46%) and Mahindra & Mahindra Ltd (1.46%).

The Oil & Gas index closed higher by 112.81 points at 11,193.69. Gainers are Cairn India (10.59%), Gail India (1.54%), Essar Oil Ltd (1.32%), Reliance (1.06%) and Aban Offshore (0.84%) .

The IT index inclined by 62.60 points to close at 4297.84. Major gainers are Mphasis Ltd (6.26%), Satyam Computers (3.41%), Tech Mahindra (2.55%), Finance Tech (2.37%), NIIT Tech (1.95%) and Wipro Ltd (1.30%).

The Bankex index went up by 53.48 points to close at 8565.13 as Axis Bank (4.89%), Union Bank (1.63%), CBoP (1.25%), HDFC Bank (1.24%), and Kotak bank (0.82%) closed in positive territory.

IT stocks help Sensex bounce back

The market returned to stability by mid-noon trades and gradually picked up momentum towards the close amid healthy buying support in heavyweights, IT, tech and oil counters. After a cautious start at 16,641, 96 points below its previous close of 16,737, the index slipped deep into red after a disappointing 3% year-on-year growth in the index of industrial production (IIP), much below the consensus expectation of 5.8% year-on-year growth. The Sensex touched the day's low of 16,547, down 190 points. However, the rupee touching the 13-month low of Rs42.02 a dollar triggered a major rally in IT stocks and the index touched the intra-day high of 16,897, up 350 points from the day's low. The Sensex finally ended the session marginally below the 16,900 mark at 16,861, up 124 points, while the Nifty added 30 points to close at 5,013.

The breadth of the market was negative, with the losers outpacing the gainers in a ratio of 1.90:1. Of the 2,747 stocks traded on the BSE, 1,777 stocks declined, 920 stocks advanced and 50 stocks ended unchanged. Most of the sectoral indices closed with gains on BSE, except realty, Auto, CD and PSU indices. BSE IT index rose by 1.48% followed by the BSE FMCG index (up 1.11%), the BSE Teck index (up 1.03%) and the BSE Oil & Gas index (up 1.02%).

Heavyweights led the upsurge in the market. Ranbaxy Laboratories soared 5.27% at Rs494, Satyam Computer Services added 3.41% at Rs490, ITC shot up by 2.52% at Rs224, HDFC increased by 2.03% at Rs2,699, Reliance Communications vaulted 2.02% at Rs550. Select counters, however, finished on a weak note. Grasim shed 3.61% at Rs2,256, JP Associates dropped 1.95% at Rs246, ACC declined by 1.45% at Rs702 and DLF lost 1.35% at Rs622.

Over 6.11 crore Aishwarya Telecom shares changed hands on the BSE followed by Reliance Petroleum (1.78 crore shares), RNRL (1.74 crore shares), IFCI (1.33 crore shares) and Ispat Industries (1.22 crore shares).

Valuewise, Aishwarya Telecom registered a turnover of Rs558 crore on the BSE followed by Reliance Petroleum (Rs316 crore), Cairn India (Rs260 crore), Reliance Capital (Rs258 crore) and Reliance Industries (Rs214 crore).

Market snaps five-day slide; IT stocks lead rally

Frenzied buying in late trade helped market snap its five-day slide. The market, which had opened lower tracking weak US markets on Friday, 9 May 2008, accentuated fall in afternoon trade triggered by dismal industrial production data. It bounced back in late trade in what was a highly volatile trading session today.

Firm European and Asian markets triggered the rebound. The S&P CNX Nifty galloped past the 5,000 mark.

India's industrial production growth dropped sharply to 3% in March 2008, slowing from the previous month's unrevised 8.6%, government data showed on Monday, 12 May 2008. It was the slowest annual growth since a 2.4% rise in February 2002.

Manufacturing production rose 2.9% in March 2008 from a year earlier, compared with 8.6% growth in February 2008. Industrial output rose 8.1% in 2007/08 compared with 11.6% in 2006/07.

In Europe, the key benchmark indices in UK, France and Germany were up by 0.6% to 1%. Asian markets reversed early losses to post gains today, 12 May 2008. Nikkei 225 Average (up 0.64% at 13,743.36), Straits Times index (up 0.70% at 3,184.19), Taiwan Weighted index (up 0.43% at 8,830) and Sanghai Composite index (up 0.37% at 3,626.98) advanced.

The 30-share BSE Sensex rose 123.83 points or 0.74% to 16,860.90. Sensex gained 160.29 points at the day's high of 16,897.36 hit in late trade. Sensex hit a low of 16,546.55 in early-afternoon trade. At the day’s low, Sensex lost 190.52 points. It oscillated in a band of 350.81 points during the day

The broader based S&P CNX Nifty was up 30.05 points or 0.60% at 5,012.65. Nifty May 2008 futures were at 5026.90, a premium of 14.25 points as compared to spot closing.

The Sensex had plunged 863.05 points or 4.9% in five straight trading sessions to 16,737.07 on 9 May 2008 from 17,600.12 on 2 May 2008 as the bears kept hammering stocks cutting across sectors.

Despite the rally in key benchmark indices, the market breadth was weak today. On BSE, 1746 shares declined as compared to 951 that advanced. 51 remained unchanged.

The BSE Mid-Cap index was down 0.67% to 6,945.91 while the BSE Small-Cap index shed 1.20% to 8,403.56. Both these indices underperformed the Sensex

The total turnover on BSE amounted to Rs 5971 crore as compared to Rs 6,594.69 crore on Friday, 9 May 2008. Turnover in NSE’s futures & options segment amounted to Rs 41000.80, higher than Rs 34951 crore on Friday, 9 May 2008

Sectoral indices on BSE displayed mixed trend. The BSE TecK index (up 1.03% to 3,409.13), BSE IT index (up 1.48% to 4,297.84), BSE FMCG index (up 1.11% at 2,486.04), BSE Oil & Gas index (up 1.02% to 11,193.69), outperformed the Sensex.

The BSE PSU index (down 0.07% to 7,738.54), BSE Bankex (up 0.63% at 8,565.13), BSE Auto (down 0.75% at 4,688.31), BSE Health Care index (up 0.59% at 4,177.31), BSE Metal index (up 0.23% to 15,647.31), BSE Realty index (down 1.95% at 7,736.91), the BSE Power (up 0.62% to 3,219.05), BSE Capital Goods index (up 0.10% at 13,121.82), and BSE Consumer Durables index (down 0.12% to 4,341.13), underperformed the Sensex.

Among the 30-member Sensex pack, 22 gained while the rest slipped.

India’s largest pharma company in terms of sales, Ranbaxy Laboratories surged 5.44% to Rs 495 on 6.10 lakh shares. It was the top gainer from Sensex pack. Ranbaxy Laboratories signed a deal to develop new anti-infective drugs for US-based Merck & Co Inc. As per the deal, Ranbaxy will carry out drug discovery and clinical development through Phase II clinical trials, while Merck will be responsible for the development and commercialisation.

IT stocks advanced on fresh buying as the rupee fell below 42 level against the dollar, at its lowest in almost 13 months. Satyam Computer Services (up 3.72% to Rs 491), TCS (up 1.08% to Rs 927.40), Wipro (up 1.60% to Rs 509.20), and Infosys Technologies (up 1% to Rs 1768), advanced.

A depreciating rupee augurs well for IT companies as they derive over 50% of their revenues from exports to US.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) recovered from day’s low of Rs 2480 and settled 1.08% higher to Rs 2555 on 8.44 lakh shares. Earlier last week RIL had shut all of its 1,432 petrol pumps in the country after sales dropped to almost nil as it could not match the subsidised price offered by public sector competition.

India’s largest state run engineering company in terms of outstanding order book position Bharat Heavy Electricals gained 1.77% to Rs 1755 after the company said it has signed a memorandum of understanding with Andhra Pradesh Power Generation Corp for setting up a 125 megawatt coal-based power plant.

Banking stocks staged smart recovery from lower levels. India's biggest commercial bank, State bank of India settled 1% lower at Rs 1659, off day’s low of Rs 1620. India's biggest private sector bank in terms of net profit, ICICI Bank rose 0.22% to Rs 876, off day’s low of Rs 861.15. India’s second largest private sector bank in terms of net profit HDFC Bank rose 1.72% to Rs 1476.90 recovering from session's low of Rs 1430.

India’s largest power generation company in terms of sales, NTPC gained 0.34% to Rs 192.50 after its board decided setting up a research and development fund for undertaking activities leading to development of sustainable energy. The company will allocate 0.5% of distributable profit annually for sustainable energy initiative.

Diversified company Grasim lost 3.76% to Rs 2252 on 44,431 shares. It was the top loser from Sensex pack.

Jaiprakash Associates (down 1.77% to Rs 246.85, off day’s low of Rs 235), ACC (down 1.26% to Rs 703, off day’s low of Rs 690), and Hindustan Unilever (down 1.40% to Rs 246.95, off day’s low of Rs 242.25), though in the red were off their day’s low.

India’s top tractor maker Mahindra & Mahindra (M&M) slipped 0.48% to Rs 669. The company said on Friday, 9 May 2008, it is hiking vehicle prices in the range of 1.5% to 2.5% due to rise in input costs. The price hikes will come into effect from 19 May 2008.

Shares of state-run oil marketing companies (OMC) declined as US light crude for June delivery was hovering near $126.14 a barrel today, 12 May 2008 after soaring to a record high of $126.27 in late trade on Friday, 9 May 2008. Bharat Petroleum Corporation (down 4.51% to Rs 358), Hindustan Petroleum Corporation (down 2.08% to Rs 237.25), and Indian Oil Corporation (down 4.71% to Rs 421.80), declined.

The sharp spurt in crude prices is putting further pressure on fuel retailers as they continue to sell products below the cost price. OMC’s currently sell petrol at a loss of Rs 13.97 a litre and diesel at a discount of Rs 20.97 per litre.

However oil exploration company Cairn India galloped 11.63% to Rs 305.80, an all-time high buoyed by anticipation that higher crude oil prices will boost realisations.

Reliance Petroleum was the top traded counter on BSE with a turnover of Rs 316.97 crore followed by Cairn India (Rs 260.68 crore), Reliance Capital (Rs 258.47 crore), Reliance Industries (Rs 214.02 crore) and Reliance Natural Resources (Rs 182.1 crore) in that order.

Recently listed Aishwarya Telecom spurted 13.79% to Rs 98.20 on momentum buying. It was the top traded counter on BSE clocking huge volumes of 6.07 crore shares. Reliance Petroleum (1.78 crore shares), Reliance Natural Resources (1.75 crore shares), IFCI (1.34 crore shares), and Cairn Indian (89.5 lakh shares) were the other volume toppers in that order.

Among the side counters, Kabra Extrusion Technik (up 15.27% to Rs 141.15), Bombay Paints (up 14.43% to Rs 91.60), and BASF India (up 12.44% to Rs 254.50), surged

However JK Sugar (down 12.13% to Rs 26.80), Hatsun Agro (down 12.10% to Rs 430), and Aro Granite (down 10% to Rs 100.90), slipped

Power Finance Corporation declined 3.69% to Rs 157.80 on reporting 19.9% fall in net profit to Rs 295.4 crore on 10.39% increase in net sales to Rs 1366.86 crore in Q4 March 2008 over Q4 March 2007. The company announced the results on Saturday, 10 May 2008.

Arvind Mills jumped 3.80% to Rs 51.85 despite posting 0.6% decline in net profit to Rs 5.37 crore on 35.4% rise in sales to Rs 658.37 crore in Q4 March 2008 over Q4 March 2007. The company announced the results on Saturday 10 May 2008.

SEL Manufacturing Company rose 7.83% to Rs 489 on reporting net profit of Rs 12.45 crore on total income of Rs 144.21 crore in Q4 March 2008. Figures for the corresponding previous year period were not available.

Blue Star shed 1.69% to Rs 442.50 despite posting 107% surge in net profit to Rs 70.36 crore on 35.97% increase in total income to Rs 744.19 crore in Q4 March 2008 over Q4 March 2007. The company announced the results during trading hours today, 12 May 2008.

Indiabulls Real Estate slumped 3.04% to Rs 524 despite reports that the company is planning to invest Rs 1000 crore to expand its retail business in the next 2-½ years.

Tata Metaliks declined 3.88% to Rs 168.50 following reports the company is planning to invest Rs 1000 crore to build a 0.8 million tonnes plant for manufacturing long products in the state Karnataka.

Mysore Cements rose 2.60% to Rs 37.55 after the company’s board gave its approval to amalgamation of Indorama Cement and Heidelberg Cement India with the company. The company announced this after market hours on Friday 9 May 2008.

Asian Paints slipped 1.57% to Rs 1200 despite posting 22.8% rise in net profit to Rs 84.84 crore on 18.84% increase in total income to Rs 879.71 crore in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on Friday, 9 May 2008.

Grey Market PRemiums

Gokul Refoils 175 to 195 8 to 10

Anu Laboratories 200 to 210 18 to 20

Local equities geared for weak opening, IIP figures eyed

Indian equities are braced for weak opening today, following negative global market cues. The record-breaking rally in crude oil may also continue to weigh on investor sentiment. However the key data which the market will be eyeing today, 12 May 2008, is the industrial production data for March 2008. Industrial production had risen 8.6% in February 2008, bouncing from January 2008's upwardly revised figure of 5.8%.

The spiraling inflation has been a major cause of concern for Indian equities market. The wholesale price index rose 7.61% in the 12 months to 26 April 2008, marginally higher than previous week's annual rise of 7.57%, government data showed on Friday, 9 May 2008. The rate was the highest since an annual reading of 7.68% on 13 November 2004. The WPI remained above the 7%-mark (significantly above RBI's revised target of 5.5% for the year) for the past four weeks.

Meanwhile, the Left parties may reportedly issue another warning soon to the ruling United Progressive Alliance (UPA) following the failure of the government to stem burgeoning prices and its efforts to operationalise the Indo-US nuclear deal. The Left parties are slated to meet on 23 May 2008, six days ahead of their ninth round of deliberations with the UPA on the nuclear issue.

The recent rally in crude oil may also continue to weigh on investor sentiment as higher crude prices would result in economy slowing down a bit. U.S. light crude for June delivery rose 18 cents to $126.14 a barrel today, 12 May 2008, as violence in the Middle East heightened worries of supply disruptions in the world's largest crude producing region. It had struck a record high of $126.27 in late trade on Friday, 9 May 2008.

With results already declared from majority of the frontline corporates, the result season has almost come to an end. The near term trend is likely to be dictated by global cues.

Aggregate results of 1642 companies showed 18.20% rise in net profit on 22.70% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 29.40% rise in net profit on 23.50% rise in net sales in the year ended March 2008 over year ended March 2007.

Asian markets were trading lower today, 12 May 2008. Sanghai Composite index (down 0.63% at 3,590.68), Nikkei 225 Average (down 0.17% at 13,632.04), Straits Times index (down 0.03% at 3,161.14), and Taiwan Weighted index (down 0.27% at 8,768.56) declined.

US markets slumped on Friday, 9 May 2008, as American International Group Inc (AIG), the world's largest insurer, reported huge losses while crude oil surged to a new high. The Dow Jones industrial average slipped 120.90 points at 12745.88 and the Nasdaq Composite declined 5.72 points at 2445.52. The S&P 500 index shed 9.40 points to 1,388.28.

Back home, the market tumbled on Friday, 9 May 2008, hit by a series of bad news on the domestic and global front. The 30-share BSE Sensex lost 343.58 points or 2.01% at 16,737.07 while the broader based S&P CNX Nifty lost 99.10 points or 1.95% at 4982.60, on that day.

After four successive weeks of gains, the market went tumbling down on all five sessions of the week ended 9 May 2008, as the bears kept hammering down stocks cutting across sectors almost right through the week. The BSE Sensex plunged 863.05 points or 4.9% to 16,737.07 and the S&P CNX Nifty fell 245.6 points or 4.69% to 4,982.60 in the week ended 9 May 2008.

As per provisional data, foreign funds sold shares worth a net Rs 619.34 crore on Friday 9 May 2008. Domestic funds bought shares worth a net Rs 180.16 crore on that day.

Foreign institutional investors (FIIs) were net buyers of Rs 122.49 crore in the futures & options segment on Friday, 9 May 2008. They were net sellers of index futures to the tune of Rs 484.85 crore and bought index options worth Rs 725.67 crore. They were net sellers of stock futures to the tune of Rs 85.18 crore and sold stock options worth Rs 33.15 crore.

Bullion metals register modest gains

Gold prices end week more than 3% higher

Precious metals ended higher on Friday, 09 May, 2008. The weak dollar was the main reason for this. Higher crude prices also added to the reason behind the rise. Prices rose as crude touched a fresh new high at $126/barrel. Silver prices also rose for the day. Dollar weakness typically benefits dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies.

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 $3.7 (0.4%) to close at $885.8 ounce on the New York Mercantile Exchange. The day before, prices had dropped by more than $6. For the week, gold prices ended higher by $3.2 ($27.8). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce.

This year, gold prices have gained 6% for the till date against a 9.2% 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 4 cents (0.02%) to $16.91 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 on Friday, the greenback fell against other major currencies, with the dollar index was at 73.05, down from 73.478. Dollar weakness typically benefits dollar-denominated commodities, such as oil and gold, because it makes them cheaper for holders of other currencies.

Crude-oil futures touched a fresh record once again near $126 on Friday. Crude-oil futures for light sweet crude for June delivery closed at $125.96/barrel (higher by $2.27/barrel or 1.8%) on the New York Mercantile Exchange. Price touched a high of $126.25 earlier during the day. In the past six sessions, crude prices have gone up by almost $13.5 (11.7%).

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.

Pre Market Watch - May 12 2008

The Indian Market is likely to have a negative opening due to unfavoring cues from the Asian markets. On Friday, Indian market closed in red due to negative cues like the growth in domestic inflation figures that rose at the fastest pace in three and half years to 7.61% in the week ended 26th April. Also the surge in global crude oil prices above $125 led to the negative sentiments in the market. From the sectoral front, the oil and gas stocks faced the heavy selling across the counters. The BSE Sensex closed lower by 343.58 points at 16737.07 and NSE Nifty fell by 99.10 points to close at 4,982.60. We expect that the market may remain volatile during the trading session.

On Friday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed lower by 120.90 points at 12,745.88 along with S&P 500 fell by 9.40 points to close at 1,388.28 and NASDAQ dropped by 5.72 points to close at 2,445.52.

Indian ADRS closed mixed. In technology sector, Satyam grew by (1.68%) along with Patni Comp by (1.26%), Wipro by (0.70%) and Infosys by (0.19%). In banking sector, HDFC bank and ICICI bank fell by (2.33%) and (1.35%) respetively. In telecommunication sector, MTNL dropped by (1.38%) while Tata Communication grew by (0.42%).

Today the major stock markets in Asia are trading weak. Hang Seng is trading lower by 386.62 points at 25,063.17 along with Japan’s Nikkei trading down by 23.30 points at 13,632.04 and Taiwan Weighted trading at 8,768.56 down by 23.83 points. Shanghai Composite trading down by 22.81 points at 3,590.68.

The FIIs on Friday stood as net seller in equity. The gross equity purchased was Rs2,663 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,065.80 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs402.50 Crore) and net debt was (Rs0.00 Crore).

Today, Nifty has support at 4,853 and resistance at 5,079 and BSE Sensex has support at 16,448 and resistance at 17,06

US Market falters

A new high crude price everyday and loss from AIG pushes market into the red

The last week that ended on Friday, 09 May, 2008 was mainly dominated by the crude oil, which marked new high for itself almost every day of the week. Other than that, there was a couple of faltering news in the financial sector. But indices ended week with sufficient losses. With the spike in oil prices and the jump in consumer credit, concerns persisted about the state of the consumer. However, the April same-store sales was the only major economic report for the week and the same was better than expected.

The Dow Jones Industrial Average lost 313 points for the week. Tech - heavy Nasdaq lost 32 points. S&P 500 lost 25.6 points. In percentage terms the three indices lost 2.4%, 1.2% and 1.8% respectively.

Oil dominated the headlines throughout the week with crude futures closing at new record highs each day. The final settlement of $126.13 per barrel marked an 8.5% gain for the week that moves was underpinned by weakness in the dollar and supply concerns.

High crude price also led FedEx issue an earnings warning late Friday that was pinned on rising fuel costs.

Citigroup also announced on Friday, 09 May that it would be pursuing a plan to sell $400 billion in noncore assets over the next two to three years. The same once again exposed the ongoing challenges that continue to confront financial companies.

A spate of ugly earnings reports came from Fannie Mae, UBS and Dow component American International Group (AIG). The latter company reported a $7.8 billion net loss for its first quarter and also revealed that it intends to raise $12.5 billion in new capital.

On Thursday, several key retailers reported positive same-store sales results for April. Wal-Mart reported an increase of 3.2%, excluding fuel sales. Costco announced 8% growth. Target announced growth of 3.1%, though the results were slightly below what the company planned.

Wholesale inventories for March declined 0.1%, which is below the 0.5% growth that economists anticipated. Last month's reading was revised lower to 0.9% growth from an initial reading of 1.1% growth.

Among major earning reports for the week, Dow component Disney for its part demonstrated this week that it still has ample earnings power. The entertainment giant reported a 35% increase in fiscal second quarter earnings per share on growth in each of its business segments. Cisco was the other heavyweight that reported earnings this week. It posted a 12% increase in fiscal third quarter earnings per share and reaffirmed its long-term growth targets.

Executive Summary

For the week, indices registered substantial losses. DJIx and S&P 500, each closed down by 2.4% and 1.8% respectively. Nasdaq closed down by 1.2%. The week was mainly dominated by the crude oil, which marked new high for itself almost every day of the week.

A spate of ugly earnings reports came from Fannie Mae, UBS and Dow component American International Group (AIG).

For the year, Dow, Nasdaq and S&P 500 are down by 3.9%, 7.8% and 5.5% respectively. Next week the Retail Sales report for April will garner maximum attention.

Daily Trading Calls - May 12 2008

Nifty (4983) Supp 4925 Res 5050

Buy Kalpataru Power (1024) SL 1004 Target 1075, 1095

Buy Renuka Sugars (127) SL 123 Target 137, 140

Sell ABB (1065) SL 1085
Target 1025, 1015

Sell Chennai Petro (352) SL 357 Target 342, 338

Sell BOI (327) SL 332
Target 317, 313

Market Outlook - May 12 2008

Market Outlook - May 12 2008

Production pain likely!

Knowledge is the only instrument of production that is not subject to diminishing returns.

Recent gains have diminished, with or without knowledge. Contrary to popular perception, the bulls failed to extend the one-month rally last week with the Sensex and the Nifty losing about 5% each. Record high crude oil prices - which crossed $126 per barrel - and rising local inflation were among the key factors behind the decline. Also, a weaker rupee (though good for exporters), coupled with lack of buying support (especially from FIIs) also added to the bulls' woes. Most market observers are surprised by last week's move, and are thus extra cautious about the market's near-term direction. The Nifty has fallen below its 200 day moving average (DMA) as well as the key 5000 mark. Stock futures saw a lot of unwinding on Friday. The premium on the Nifty May futures has also shrunk with a corresponding rise in open interest, which indicates build-up of short positions. Still, the 5000 put options continue to hold firm, which makes it even more difficult to predict the near-term market direction.

Today, the Government will release its provisional industrial production data for March. The data will have some bearing on sentiment, though the market has already factored in a deceleration in economic growth, especially on the manufacturing side. Though there is a case for a technical rebound (which need not be today) after last week's drubbing, one should use the rally to cut down one's long positions rather than build fresh ones. Arvind Mills could be in action as the company will announce some strategic initiatives later today.

Rising inflation and the Government's obsession with it (given that its an election-heavy year) is also a major issue, as this will hurt India Inc's financial health. The best way to avoid the ongoing uncertainty and volatility in the market is to take a stock specific approach. Here too, we would advise one to stick to quality companies and avoid the so-called momentum plays. We expect the market to open on a flat note, as global cues are pretty mixed. The bias remains negative, though the bulls may stage a brief comeback.

Results Today: Blue Star, Dewan Housing Finance, Graphite India, Indiabulls Real Estate, RCF and Unichem Labs.

FIIs were net sellers of Rs6.19bn (provisional) in the cash segment on Friday while local institutions poured in Rs1.8bn. In the F&O segment, foreign funds were net buyers of Rs1.22bn. On Thursday, FIIs were net sellers of Rs4.02bn. Mutual Funds were net sellers of Rs934mn.

Asian stocks are mostly down this morning, set for their longest losing streak in more than two months, on concern that rising prices of raw materials will erode earnings.

The MSCI Asia Pacific Index retreated 0.2% to 148.66 as of 10:33 a.m. in Tokyo, the fourth day of losses and its longest consecutive period of declines since March 5. The Nikkei 225 Stock Average fell 0.3% to 13,612.06.

China's CSI 300 Index tumbled 2.7%, the region's biggest drop. Markets are closed today in South Korea and Hong Kong. Australia's S&P/ASX 200 Index rose 0.4% to 5,796.80.

US stocks fell on Friday, with the major indexes all hit with weekly losses of 1% and more, after AIG reported a $7.8bn loss and Citigroup unveiled plans to shed about half a trillion dollars in assets.

The Dow Jones Industrial Average fell 120 points, or 0.9% to close at 12,745.88. For the week, the Dow lost more than 300 points, or 2.4%. The S&P 500 Index fell 9.4 points to 1,388, for a weekly loss of 1.8%. The Nasdaq Composite Index dropped 5 points to 2,445 and lost 1.3% over the week.

Market breadth was negative and volume was moderate.

Record oil and gas prices exacerbated fears about the threat of inflation. Crude for June delivery rose as high as $126.25 a barrel on the New York Mercantile Exchange Friday, before closing at $125.96, up $2.27 on the session.

The national average price for a gallon of regular unleaded gas rose to a record $3.671 from $3.645 the previous day, according to AAA.

COMEX gold for June delivery rose $3.70 to $885.80 an ounce. The dollar fell versus the euro and the yen. Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.77% from 3.78% late on Thursday.

AIG reported a steeper-than-expected quarterly loss late on Thursday, and said it will look to raise $12.5bn in capital. The news revived worries about the credit crisis, sending AIG shares down 8.8%.

Citigroup said on Friday that it plans to sell off around $500bn in assets, or 20% of its total, over the next two to three years as a means of becoming more "fit" and profitable. The company plans to sell off non-core businesses in stages. Shares slipped 2.8%.

The US trade deficit shrank more than expected in March, as the demand for imports fell at a faster pace than the demand for exports, due to the impact of the weak dollar.

Wal-Mart, JC Penney, Kohl's and Nordstrom are among the many retailers due to report quarterly results this week. Earnings are also due from Hewlett-Packard, Sprint Nextel and Freddie Mac.

Economic reports are due on retail sales, business inventories, consumer prices, manufacturing and housing.

European shares fell sharply on Friday as financials came under renewed pressure after AIG's big loss and oil futures continued to surge. The pan-European Dow Jones Stoxx 600 index fell 1.3%, to 324.85, with declining stocks overtaking advancing issues more than 4 to 1.

The UK's FTSE 100 declined 1.1% to 6,204.70 and Germany's DAX 30 dropped 1% to 7,003.17. The French CAC-40 slipped below 5,000 for the first time since May 1, down 1.9% to 4,960.56.

In the emerging markets, the Bovespa in Brazil was down 0.1% at 69,645 while the IPC index in Mexico dropped 0.25% to 30,674 and the ISE National 30 index in Turkey 0.5% to 51,794.

Bulls look for a rebound

Markets ended on a negative note as bears onslaught continued for fifth straight day. Weak close in the equity markets across Asia and intensified selling witnessed in scrips across the sectors dragged the markets to close in deep red. Sentiments further dampened as the European markets also started off with a negative bias.

Apart from the global weakness on concerns that IIP numbers to be announced on Monday will not be up to the mark added further pressure to the markets.

All the key Sectoral indices ended in red with BSE Oil & Gas index leading the fall. The index fell 4.87%. Heavyweights like RIL, ICICI Bank and HDFC Bank were among the major laggards dragging the Nifty index to close below the 5k mark.

Finally, the BSE benchmark Sensex ended 343 points lower to close at 16,737 and the Nifty index lost 98 points to close at 4,982.

Overall about 703 stocks advanced; 2,020 stocks declined while 61 stocks remained unchanged. Among the 50-Nifty 41 stocks ended in red and 9 stocks ended in green.

Nagarjuna Fertilizers slipped by 7% to Rs42. The company plans to set up overseas plants and foray into complex fertilisers to encourage growth that is currently restricted by government controls, said reports. The scrip touched an intra-day high of Rs46 and a low of Rs42 and recorded volumes of over 34,00,000 shares on NSE.

MIC Electronics edged higher by 0.5% to Rs905 after the company announced that the board of directors of the company would meet on May 19, 2008 to consider stock split. The scrip touched an intra-day high of Rs960 and a low of Rs880 and recorded volumes of over 49,000 shares on NSE.

Kotak Mahindra slipped by over 5% to Rs737 after the company announced that clients MTM derivative loss was Rs6.12bn. The company posted a net profit of Rs2401mn for the quarter ended March 31, 2008 as compared to Rs1703.30mn for the quarter ended March 31, 2007. Total Income increased from Rs14232.77mn for the quarter ended March 31, 2007 to Rs18625.08mn for the quarter ended March 31, 2008. The scrip touched an intra-day high of Rs799 and a low of Rs727 and recorded volumes of over 9,00,000 shares on NSE.

Everonn Systems was locked at 5% lower circuit to Rs849.20. The company announced that it would raise Rs940mn selling securities. The scrip touched an intra-day high of Rs905 and a low of Rs886 and recorded volumes of over 3,00,000 shares on NSE.

ACC was down by 4% to Rs712. Responding to concerns expressed by the Government, ACC, has decided to hold its cement prices over the coming 2-3 months. While ACC has been taking all steps necessary to ensure that production is maintained at peak levels at all its plants and will continue to improve further operational efficiencies, this price freeze will erode the company’s margins. During this period, ACC will engage in an open dialogue with the Government to explore viable solutions to combat inflationary trends that have disproportionately increased its input costs, reports stated. The scrip touched an intra-day high of Rs739 and a low of Rs709 and recorded volumes of over 1,00,000 shares on NSE.

Infotech Enterprise was down 1% to Rs260. The company announced that it secured 3 data management contracts from Powercor Australia, Citipower. The scrip touched an intra-day high of Rs277 and a low of Rs252 and recorded volumes of over 9,000 shares on NSE.

Texmaco advanced by over 4% to Rs1510 after the company announced its plans to split its stock. The Board of Directors of the company would meet on May 16, 2008. The scrip touched an intra-day high of Rs1639 and a low of Rs1470 and recorded volumes of over 10,000 shares on NSE.

Crompton Greaves was down 1.5% to Rs243. According to reports, the company is set to take over power distribution in Nagpur. Electricity Regulatory Commission, state power regulator in Maharashtra on Thursday gave its final approval for appointing private franchise for Nagpur, reports added. The scrip touched an intra-day high of Rs251 and a low of Rs241 and recorded volumes of over 53,000 shares on NSE.

Corporate News

India’s largest DTH company Dish TV to offer free set-top boxes.(BS)
Ranbaxy is likely to announce a drug discovery research tie-up with US drug manufacturer Merck.(BS)
M&M announces an upward revision of vehicle prices in the range of 1.5-2.5%.(BL)
NTPC on the look out for coal mines abroad.(BL)
Heidelberg consolidates its cement business in India.(BS)
DLF Assets is likely to launch an IPO of its office trust in Singapore by June to raise US$2 billion.(BS)
Bharti Airtel-MTN alliance talk gets a boost as a key investor backs the deal.(BL)
Spencer's Retail, a RPG group company, to invest Rs15bn to open 250 new retail outlets within a year.(BS)
SBI to add 1,000 branches in rural and semi-urban areas in the current fiscal.(BL)
Reliance Communications awards US$400mn deal to Alcatel-Lucent for network managed services.(Mint)
Great Offshore to acquire SeaDragon Offshore for US$1.4bn.(BS)
Idea Cellular may withdraw from Indus Towers.(FE)
Thermax India plans to invest Rs2bn on expansion in the current fiscal.(ET)
GMDC on the look out for coal mine partners in Africa; to set up three power projects.(BL)
Essar Power gets government approval to operate as a holding company and infuse up to Rs80bn as FDI.(BS)
Hungarian firm MOL Hungarian Oil and Gas Plc acquires a 35% stake in onshore exploration block of ONGC in the Himalayan foothills.(FE)
Kotak Mahindra Bank makes a provision of Rs860mn in the March quarter for potential losses from derivative transactions of its clients.(BS)
Telcel, Emirates Telecommunications and Altimo are in race to pick up equity worth US$1bn in Tata Teleservices.(ET)
BPCL, Indian Oil seek a relook into the impact of 10% ethanol blending.(FE)
Satyam Computer draws up capital expenditure of US$125mn to develop four SEZs.(BL)
GVK Power & Infrastructure gets in-principle approval to generate gas-fuelled power of 1,500MW.(Mint)
Idea Cellular cuts STD and roaming rates.(ET)
Reliance Industries to use closed fuel outlets for malls and multiplexes; earmarks Rs50bn for the project.(BS)
Health insurer Apollo DKV plans to invest up to Rs5bn in the next five years.(FE)
ADAG may pick up a stake in AB Corp.(ET)
Blackstone, New Vernon and ADAG pick up stake in Everonn Systems.(TOI)
Lafarge discusses with L&T to acquire the latter’s ready mix concrete business for Rs12bn.(ET)
Infotech Enterprises receives a three year contract from Powercor Australia.(DNA)
BHEL has formally taken over Bharat Heavy Plate & Vessels.(ET)
Vishal Retail plans to raise Rs24bn over the next three years for its expansion.(DNA)
Tata Power to raise Rs14bn through issue of shares to its promoters.(ET)
Bennett, Coleman & Co, India’s largest print media company, plans an IPO.(BS)
Barclays to set up a 5,000 seat captive BPO unit in India.(ET)
BSNL has set a slew of stiff conditions for companies who want to participate in its Rs400bn tender for a 93mn GSM lines.(ET)
ONGC has put its plans on hold to roll out fuel retail outlets.(TOI)
Reliance Money has tied up with Sify Technologies to sell its financial products.(ET)

Economic News

Higher prices of fruits and manufactured goods like locomotives and non-ferrous metals push WPI to 7.61% for week ended April 26th, the highest since November 2004.(BL)
Non-life insurance companies may get approval to change the coverage, wordings, terms and conditions of policies.(BS)
Bank credit for the fortnight ended April 25th declines by Rs 120bn.(BL)
Government notifies export duty of up to 15% on various steel products to contain price rise of the alloy.(BS)
Cement prices decline by Rs6 per bag to Rs210 in Gujarat. (DNA)
Government to seek annual fee from successful bidders of non-metro airports.(BL)
GMR and GVK plan to increase landing and parking fees at the airport.(ET)
3G players not suited for India, TRAI cautions finance ministry.(FE)
Steel companies may roll back prices as government has notified export duty on steel items.(ET)
Union government plans to open a national chain of generic drug stores, one in each district, to sell inexpensive, unbranded medicine.(Mint)
The Supreme Court will decide how coal companies should conduct e-auction.(ET)
Japan to invest Rs85bn to develop nine infrastructure projects in India.(ET)
Civil aviation ministry is considering a capital infusion of Rs10bn in Air India.(ET)

Weekly Technicals - May 12 2008

Weekly Technicals - May 12 2008

Company Background - Indian Hotels

Jamsetji N Tata initiated an element of Tata group; The Indian Hotels Company Limited was incorporated in the year of 1902. The company and its subordinates are communally known as Taj Hotels Resorts and Palaces, is one of Asia's prime and most excellent hotel company in hospitality sector. The Taj Mahal Palace Hotel, Bombay was started in the year 1903, which was the company's first property. IHCL covers 52 Destinations, 12 Countries, 5 Continents, 77 Hotels, 7 Authentic Palaces, 12 Resorts & SPAs, 3 Personal Jets and Luxury Yachts out of this the company have 17 international hotels in the Maldives, Mauritius, Malaysia, United Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia. Business divisions of the company are divided into three categories, the Luxury Division, Business Hotel Division and Leisure Division. The Taj played an important role in launching several of India's key tourist destinations. An innovator in dining, Taj was the first to introduce Sichuan, Thai, Italian, Mexican, and Californian cuisine into the country.

As early as 1974, the Taj opened India's first international beach resort-Fort Aguada Beach Resort in Goa. During the period 1978-82: Taj launched in Delhi with its luxury hotel - Taj Mahal Hotel and then prepared India for the Asian Games by setting up Taj Palace, Delhi with the largest convention centre in the country. In the year of 1982, Taj ascertained an attendance in the Western Hemisphere with the historic St. James Court Hotel near Buckingham Palace, London. Well before these destinations became world renown for their beauty, Taj expanded to Kerala and Sri Lanka during 1984-92. In the year 2000, fused its position as the largest chain in India with hotels in Ahmedabad and Hyderabad, the latter city being a joint venture by the way of GVK Hotels resulted in a dominant position in the market for premium and luxury hotel rooms. In 2001-02, the company hived off its air catering business to a new joint venture company namely Taj SATS Air Catering by relationship with Singapore Airport Terminal Services (SATS). As on 2002 the new Taj Exotica Resort & Spa, Maldives, within six months of its launch, was awarded the title of "The Best Resort in the World" in the first ever Harpers and Queen Travel Awards and in September of the same year the company along with ICICI Trustee Services (I-Ventures) has acquired Lokhandwala Hotel's (LHL), Regent Hotel at Bandra in Mumbai for a total consideration of Rs 452 crore.

The company has originated Taj Wellingtone Mews Luxury Residences located in Mumbai with 80 serviced apartments in the year 2004, in same year the company has launched 'Smart Basics' concept, indiOne, at Bangalore through Roots Corporation Ltd, its wholly owned subsidiary and also launched its exclusively developed two brands viz the high end 'Jiva Grande Spa' and the smaller `Jiva Spa' traditional Indian ayurvedic & yogic systems, set in internationally contemporary ambience. During the year 2005-06 IHCL entered into its third marketing alliance. The first such alliance was occurred with Raffles Hotels and Resorts encompassing 14 Taj Luxury Hotels and 15 Raffle Hotels. The second alliances were made with Shilla Hotels and Resorts, Korea and the third marketing alliance was made with Silversea Cruises, European Cruise Company in the year 2006-07, also the company tied up with Qantas Airline for frequent flier loyalty program. The Taj brand campaign was launched in the US market in January 2007, the campaign has two distinct elements namely the `Perspectives' and the `Portraits'.

Asia Pacific Hotels Ltd, Taj Lands End Ltd (subsidiary) and Indian Resorts Hotels Ltd, Gateway Hotels & Gateway Resorts Ltd, Kuteeram Resorts Private Ltd (associates) were merged with the company. IHCL acquired the erstwhile Ritz Carlton, Boston through an outright purchase and completed the acquisition of the Campton Place Hotel in San Francisco in April 2007. The company concentrates on its expansion of field; hence its key projects in different areas are budding in speedy. Taj Hotels Resorts & Palaces Winner of the Selling Long Haul Travel Awards 2007, Indian Hotels Company Ltd received the CNBC TV 18 International Travel Award for the Outstanding Exporter of the Year 2007, in the Travel Tourism & Hospitality Category and also Winner of the inaugural 'Genius of the Web 2007' award given by CNBC-Web 18 in association with Frost & Sullivan for the Best Hotel Website in India. In the year 2008, Taj West End awarded best eco- friendly hotel by the department of tourism, Taj Residency was awarded the best hotel in the five-star category, being the highest foreign exchange earner in the country with the maximum number of tourist arrivals and the Gateway hotel on Residency Road was awarded the best hotel in the four star category.

IHCL plans to integrate environment management in all its business areas as a part of EARTH (Environment Awareness and Renewal at Taj Hotels). EARTH is a company-wide movement to reinstate its vision and efforts on environment management in all its hotels.

Company Background - ITC

ITC Ltd. a leading FMCG Cigarette major is one of the most valuable companies of India. Rated among the World's Best Big Companies by Forbes magazine. Eventhough ITC is renowned for its Cigarette business it also has business interests in Hotels; Paperboards, Paper & Packaging; agri exports and some other FMCG products like branded packaged foods, safety matches, Incense Sticks and Greeting Cards etc. Being the pioneer of manufacture of cigarettes in India, ITC maintains its leadship positionsince 1910. ITC has diversified its brands across products categories. Its successful brands include Gold Flake, Wills, Classic, Bristol and Scissors. It also sells two luxury filter brands of its parent company Benson & Hedges and 555.

ITC was incorporated on August 24, 1910 under the name of `Imperial Tobacco Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, `Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. The Company's ownership progressivelyIndianised, and the name of the Company was changed to I.T.C. Limited in 1974.

Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company.

In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with 65 owned and managed properties spread across India. It also has a marketing and reservation arrangement with the Sheraton Corporation, the reputed international hotel chain.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. The Company's technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of `Sarapaka', an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development.

In 1985, ITC set Surya Tobacco Co. in Nepal as a joint venture with the reputed Soaltee group. In 1990, ITC acquired Tribeni Tissues Limited, a speciality paper manufacturing company and a major supplier of tissue paper to the cigarette industry. Also in 1990, leveraging its agri-sourcing competency, ITC set up the International Business Division (IBD) for export of agri-commodities. The Division is today one of India's largest exporters.

Recently, ITC's Packaging & Printing business has launched a line of high quality greeting cards under the brand name `Expressions'. ITC has also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women. The company has recently forayed into lifestyle Retailing business with its launch of 'Wills' range of casual and formal wear products. It has also spun off its Information Technology business into a wholly owned subsidiary to moreaggressively pursue emerging opportunities. ITC is one of the largest exporters of Indian agri-commodities.

ITC Bhadrachalam Paper Boards, a subsidiary company was merged with ITC in the year 2002. The shareholders of ITCPBL were allotted one equity share of ITC Ltd for every sixteen held. The company has decided to amalgamate ITC Hotels Ltd & Ansal Hotels Ltd with itself.As per the scheme of amalgamation,i)the shareholders of ITCHL will receive Three Equity Shares of Rs.10/- each of ITC Ltd for every Twenty Five Equity Shares of Rs.10/- each held, ii)the shareholders of Ansal Hotels Ltd will get One Equity Share of Rs.10/- each of ITC Ltd for every One Hundred Fifty Equity Shares of Rs.10/- each held by them. This amalgamation has come into effect from 1st April 2004.

During 2004-05, the company commissioned its second property 'ITC Grand Central' in Mumbai. The company has proposed hotels at Chennai, Bangalore and Hyderabad.

The company expanded the installed capacity of Cigarettes and Paperboards & Paper during the year 2004-05 by 7329 Million Nos and 75000 Tonnes and with this expansion, the total installed capacity of Cigarettes and Paperboards & Paper increased to 94597 Million Nos & 352500 Tonnes respectively.

In 2005,the company was awarded the ISO 9001:2000 standard By M/s. Det Norske Veritas as a recognition of its quality products and processes. The company's units at Munger and Tiruvottiyur are certified to ISO 9000,14000 and 18000. The company has also won three India stars, three Asia Stars and one World star Award for innovative packaging.

In 2005-06, the company acquired Wimco Ltd through its one of the subsidiary company, Russell Credit Ltd. This acquisition is expected to further consolidate the market standing of the company's matches business through synergy benefits. The Installed capacity of Cigarettes and Printing & Packaging including Flexibles expanded 4752 Million Nos and 9928 Tonnes during the year, with this expansion the total installed capacity of Cigarettes and Printing & Packaging including Flexibles increased to 99,349 Million Nos & 47,837 Tonnes.

India Strategy - May 9 2008

India Strategy - May 9 2008

Today's Pick - EIH

We recommend a sell in EIH from a short-term perspective. From charts of the EIH, we note that the stock has been on a downtrend (forming lower peaks and lower troughs) form its 52-week high of Rs 246 (touched on January 7).

However, in late March the stock found support at around Rs 119 levels and witnessed a corrective up move to Rs 160 level.

The stock met with a resistance (down trendline) around Rs 160 levels during late April and it failed to surpass this resistance due to selling pressure. Subsequently the stock began to decline and it appears to have resumed its downtrend.

On May 9, the stock fell penetrating the 50- and 200-day moving averages, indicating further bearishness. The daily momentum indicator is on the verge of entering the bearish zone.

A cross over in the daily moving average convergence and divergence indicates a sell signal. We are bearish on the stock in the short-term.

We expect the stock’s downtrend to continue until it hits our price target of Rs 124 in the upcoming trading sessions. Investor with short-term perspective can sell the stock while keeping the stop-loss at Rs 149.

via BL

A new high everyday for crude

Crude prices rise by more than 8% for the week

Crude-oil futures touched a fresh record once again near $126 on Friday, 09 May, 2008. It might be noted that crude prices touched a new high on all the individual days of the week that ended on Friday. Weaker dollar and tensions regarding overall global supplies were the main reasons to push crude prices higher. Prices for crude oil have been hovering around $125 against a backdrop of disruptions to oil production in Nigeria.

Crude-oil futures for light sweet crude for June delivery closed at $125.96/barrel (higher by $2.27/barrel or 1.8%) on the New York Mercantile Exchange. Price touched a high of $126.25 earlier during the day. In the past six sessions, crude prices have gone up by almost $13.5 (11.7%).

For the week, crude prices ended higher by 8.8%. Last week, prices closed at $116.3/barrel. For the year, crude is up by 28.6% till date.

On the currency markets on Friday, the greenback fell against other major currencies, with the dollar index was at 73.05, down from 73.478. Dollar weakness typically benefits dollar-denominated commodities, such as oil and gold, because it makes them cheaper for holders of other currencies.

EIA reported earlier this week that crude supplies rose 5.7 million barrels to 325.6 million for the week ended 2 May. Supplies of oil have now climbed a total of 11.9 million barrels over the past three weeks.

EIA also reported that motor gasoline supplies climbed 800,000 barrels to 211.9 million barrels last week and distillate stocks were down 100,000 barrels at 105.7 million barrels. The decline in distillate supplies last week came as refinery utilization fell to 85.0% of capacity from 85.4% a week earlier

Natural gas for June delivery climbed 28 cents to close at $11.54 per million British thermal units. EIA reported on Thursday that natural-gas inventories rose by 65 billion cubic feet for the week ended 2 May. Total stocks now stand at 1.436 trillion cubic feet, down 284 billion cubic feet from the year-ago level and 11 billion cubic feet below the five-year average.

Against this backdrop, June reformulated gasoline gained 6 cents to end at $3.20 a gallon and June heating oil rose 13 cents to finish at $3.64 a gallon.

EIA reported earlier this week that global oil consumption will likely grow by 1.2 million barrels per day this year, but the consumption of liquid fuels and other petroleum is expected to decline by around 190,000 barrels per day because of the economic slowdown and high petroleum prices. The EIA also expects regular gasoline prices to average $3.52 per gallon this year, up 71 cents from a year ago.

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