Dead Presidents! - India Equity Research: May 13, 2008

Tuesday, May 13, 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
13-MAY-2008,GWALCHEM,Gwalior Chemical Industri,MANSUKH SECURITIES & FINANCE LTD,BUY,143642,88.66,-
13-MAY-2008,GWALCHEM,Gwalior Chemical Industri,MBL & COMPANY LTD.,BUY,132563,89.89,-
13-MAY-2008,GWALCHEM,Gwalior Chemical Industri,VAIBHAV DOSHI,BUY,214875,90.51,-
13-MAY-2008,NUCHEM,Nuchem Ltd,JIGYASA PROPERTIES PRIVATE LIMITED,BUY,175000,27.46,-
13-MAY-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,CARLSON FUND A/C CARLSON FUND EQUITY - FAR EAST,BUY,1378554,256.08,-
13-MAY-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,SURESH U.TREVADIA,BUY,382255,256.86,-
13-MAY-2008,ROHITFERRO,Rohit Ferro-Tech Limited,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,BUY,210873,124.93,-
13-MAY-2008,GWALCHEM,Gwalior Chemical Industri,MANSUKH SECURITIES & FINANCE LTD,SELL,141917,89.02,-
13-MAY-2008,GWALCHEM,Gwalior Chemical Industri,MBL & COMPANY LTD.,SELL,132563,89.94,-
13-MAY-2008,GWALCHEM,Gwalior Chemical Industri,VAIBHAV DOSHI,SELL,189875,90.20,-
13-MAY-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,SURESH U.TREVADIA,SELL,381394,256.66,-

BSE Bulk Deals to Watch - May 13 2008

Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
13/5/2008 532975 AISHWARYA TE PRATIK H. PAREKH B 56500 106.51
13/5/2008 532975 AISHWARYA TE CHIRAG D. MEHTA B 74577 106.08
13/5/2008 532975 AISHWARYA TE HARESH LAKHMANBHAI VEKARIYA B 63075 104.29
13/5/2008 532975 AISHWARYA TE ARCADIA SHARE AND STOCK BROKERS PVT LTD B 68052 101.20
13/5/2008 532975 AISHWARYA TE MALA H SHETH B 147009 103.91
13/5/2008 532975 AISHWARYA TE PANNABEN PANKAJ SHAH B 63500 104.01
13/5/2008 532975 AISHWARYA TE SHETTY MANISH NARAYANBHAI B 234889 104.93
13/5/2008 532975 AISHWARYA TE YES INVESTMENTS B 130000 101.30
13/5/2008 532975 AISHWARYA TE V J PATEL INVESTMENT B 272464 105.18
13/5/2008 532975 AISHWARYA TE LAXMANDAS JETHANAND ADWANI B 71035 105.82
13/5/2008 532975 AISHWARYA TE MALTI RAMESHCHANDRA KANANI B 70000 105.20
13/5/2008 532975 AISHWARYA TE GOPAL TRADERS B 438108 103.51
13/5/2008 532975 AISHWARYA TE KHATRI ENTERPRISE B 88211 102.35
13/5/2008 532975 AISHWARYA TE KASHISH FINSTOCK B 600844 101.22
13/5/2008 532975 AISHWARYA TE OPG SECURITIES PVT LTD B 62236 108.43
13/5/2008 532975 AISHWARYA TE SHAILESH M. NISSAR B 1313169 104.42
13/5/2008 532975 AISHWARYA TE DIMENSIONS INVESTMENT AND SECURITIES LTD B 90000 103.53
13/5/2008 532975 AISHWARYA TE AMAR PANDURANG PATIL B 55000 104.65
13/5/2008 532975 AISHWARYA TE SANGEETA KAKANI B 106183 103.31
13/5/2008 532975 AISHWARYA TE RAHUL DOSHI B 70000 103.53
13/5/2008 532975 AISHWARYA TE PREM MOHANLAL PARIKH B 230520 108.30
13/5/2008 532975 AISHWARYA TE HEMANT MADHUSUDAN SHETH B 70000 102.14
13/5/2008 532975 AISHWARYA TE RAMESH T VATNANI HUF B 100000 99.66
13/5/2008 532975 AISHWARYA TE NEERAJ KARAN SHARMA B 54213 103.78
13/5/2008 532975 AISHWARYA TE ANGEL INFIN PRIVATE LIMITED B 70304 104.95
13/5/2008 532975 AISHWARYA TE VAIBHAV BHALCHANDRA MAHAJAN B 78900 103.57
13/5/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. B 1024768 104.05
13/5/2008 532975 AISHWARYA TE MANISHA N. MITTAL B 62000 106.19
13/5/2008 532975 AISHWARYA TE ANURAG S. SABOO B 100379 107.94
13/5/2008 532975 AISHWARYA TE ND NISSAR B 1404618 103.41
13/5/2008 532975 AISHWARYA TE N C JAIN B 184972 103.27
13/5/2008 532975 AISHWARYA TE SWATI ATUL REGE B 75000 103.26
13/5/2008 532975 AISHWARYA TE DIPAK R RATHOD B 335340 103.20
13/5/2008 532975 AISHWARYA TE BABUBHAI A CHAUHAN HUF B 80000 105.06
13/5/2008 532975 AISHWARYA TE LATIN MANHARLAL SEC PVT LTD B 349470 103.72
13/5/2008 532975 AISHWARYA TE SIDDHARTH D. MEHTA B 75000 102.50
13/5/2008 532975 AISHWARYA TE TALENT INFOWAY LIMITED B 95000 107.63
13/5/2008 532975 AISHWARYA TE ALPHA CHEMIE TRADE AGENCIES B 175997 107.00
13/5/2008 532975 AISHWARYA TE RAMESH VINODCHANDRA SHAH B 70000 104.19
13/5/2008 532975 AISHWARYA TE RAVINDRA THIMMAPPA SHETTY B 56000 103.63
13/5/2008 532975 AISHWARYA TE BHANDARI KALPESH MANMOHAN B 547266 105.00
13/5/2008 532975 AISHWARYA TE NAVEEN TAPARIA B 122564 103.32
13/5/2008 532975 AISHWARYA TE AMU SHARES AND SEC LTD B 106223 105.07
13/5/2008 532975 AISHWARYA TE MUKESH SHAH B 619213 104.66
13/5/2008 532975 AISHWARYA TE DEEPAK SHARMA B 78260 106.56
13/5/2008 532975 AISHWARYA TE KRISHNA PRASAD P S B 66500 102.43
13/5/2008 532975 AISHWARYA TE PRATIK H. PAREKH S 56500 106.80
13/5/2008 532975 AISHWARYA TE CHIRAG D. MEHTA S 74577 106.04
13/5/2008 532975 AISHWARYA TE HARESH LAKHMANBHAI VEKARIYA S 63075 103.29
13/5/2008 532975 AISHWARYA TE ARCADIA SHARE AND STOCK BROKERS PVT LTD S 73052 100.49
13/5/2008 532975 AISHWARYA TE MALA H SHETH S 147009 106.38
13/5/2008 532975 AISHWARYA TE PANNABEN PANKAJ SHAH S 63500 108.00
13/5/2008 532975 AISHWARYA TE SHETTY MANISH NARAYANBHAI S 234889 109.29
13/5/2008 532975 AISHWARYA TE YES INVESTMENTS S 132500 102.80
13/5/2008 532975 AISHWARYA TE V J PATEL INVESTMENT S 222464 108.36
13/5/2008 532975 AISHWARYA TE LAXMANDAS JETHANAND ADWANI S 71035 105.05
13/5/2008 532975 AISHWARYA TE MALTI RAMESHCHANDRA KANANI S 70000 104.91
13/5/2008 532975 AISHWARYA TE GOPAL TRADERS S 238108 105.07
13/5/2008 532975 AISHWARYA TE KASHISH FINSTOCK S 600844 104.10
13/5/2008 532975 AISHWARYA TE OPG SECURITIES PVT LTD S 62236 108.43
13/5/2008 532975 AISHWARYA TE SHAILESH M. NISSAR S 1309685 104.55
13/5/2008 532975 AISHWARYA TE DIMENSIONS INVESTMENT AND SECURITIES LTD S 90000 106.74
13/5/2008 532975 AISHWARYA TE AMAR PANDURANG PATIL S 55000 104.95
13/5/2008 532975 AISHWARYA TE SANGEETA KAKANI S 106183 103.14
13/5/2008 532975 AISHWARYA TE RAHUL DOSHI S 70000 101.74
13/5/2008 532975 AISHWARYA TE PREM MOHANLAL PARIKH S 180520 106.29
13/5/2008 532975 AISHWARYA TE HEMANT MADHUSUDAN SHETH S 70000 103.74
13/5/2008 532975 AISHWARYA TE BHAVESH PRAKASH PABARI S 100000 103.36
13/5/2008 532975 AISHWARYA TE RAMESH T VATNANI HUF S 100000 106.45
13/5/2008 532975 AISHWARYA TE NEERAJ KARAN SHARMA S 54213 101.47
13/5/2008 532975 AISHWARYA TE ANGEL INFIN PRIVATE LIMITED S 75304 104.87
13/5/2008 532975 AISHWARYA TE VAIBHAV BHALCHANDRA MAHAJAN S 78900 103.58
13/5/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. S 1024768 104.13
13/5/2008 532975 AISHWARYA TE MANISHA N. MITTAL S 62000 106.51
13/5/2008 532975 AISHWARYA TE ANURAG S. SABOO S 100379 104.75
13/5/2008 532975 AISHWARYA TE N D NISSAR S 1404618 103.46
13/5/2008 532975 AISHWARYA TE N C JAIN S 183972 103.41
13/5/2008 532975 AISHWARYA TE DIPAK R RATHOD S 335340 104.71
13/5/2008 532975 AISHWARYA TE BABUBHAI A CHAUHAN HUF S 80000 100.44
13/5/2008 532975 AISHWARYA TE LATIN MANHARLAL SEC PVT LTD S 349918 103.78
13/5/2008 532975 AISHWARYA TE SIDDHARTH D. MEHTA S 75000 102.79
13/5/2008 532975 AISHWARYA TE TALENT INFOWAY LIMITED S 95000 106.02
13/5/2008 532975 AISHWARYA TE ALPHA CHEMIE TRADE AGENCIES S 175997 105.27
13/5/2008 532975 AISHWARYA TE RAMESH VINODCHANDRA SHAH S 70000 104.58
13/5/2008 532975 AISHWARYA TE RAVINDRA THIMMAPPA SHETTY S 56000 104.67
13/5/2008 532975 AISHWARYA TE BHANDARI KALPESH MANMOHAN S 547266 105.10
13/5/2008 532975 AISHWARYA TE NAVEEN TAPARIA S 122564 104.39
13/5/2008 532975 AISHWARYA TE AMU SHARES AND SEC LTD S 106223 105.17
13/5/2008 532975 AISHWARYA TE MUKESH SHAH S 619213 104.79
13/5/2008 532975 AISHWARYA TE DEEPAK SHARMA S 78260 104.24
13/5/2008 532975 AISHWARYA TE KRISHNA PRASAD P S S 66500 102.63
13/5/2008 505036 AUTOMO COR G ICICI PRUDENTIAL MUTUAL FUND S 265447 250.00
13/5/2008 509728 BHURUKA GAS SATAYANARAYAN AGARWAL S 140000 19.65
13/5/2008 590059 BIHAR TUBES HARDIK M MITHANI B 45000 177.87
13/5/2008 590059 BIHAR TUBES NISHWET MANAGEMENT SERVICES PVT LYD B 50000 177.74
13/5/2008 590059 BIHAR TUBES M D KOTECHA B 50000 180.77
13/5/2008 590059 BIHAR TUBES N C JAIN B 39452 179.73
13/5/2008 590059 BIHAR TUBES IGSL TRADING ACCOUNT B 70761 178.10
13/5/2008 590059 BIHAR TUBES HARDIK M MITHANI S 47940 177.38
13/5/2008 590059 BIHAR TUBES N C JAIN S 39452 180.06
13/5/2008 509475 BOMBAY PAINT PURSHOTTAM JAMNADAS RATHI B 10000 98.49
13/5/2008 590076 CAMSON BIO KOTAK MAHINDRA U.K.LTD B 200000 122.88
13/5/2008 590076 CAMSON BIO PIVOTAL SECURITES PVT. LTD. S 154341 122.89
13/5/2008 531682 CAT TECHNOL EDELWEISS ESTATES PRIVATE LIMITED S 167724 8.01
13/5/2008 531137 GEMSTONE INV HEMANT MADHUSUDAN SHETH B 25000 22.70
13/5/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI B 22000 22.25
13/5/2008 532764 GWALIOR CHEM MANSUKH STOCK BROKERS LTD B 166956 88.56
13/5/2008 532764 GWALIOR CHEM MANSUKH STOCK BROKERS LTD S 166573 88.43
13/5/2008 522165 INDSIL ELECT RIKEEN PRADIO DALAL S 80842 72.81
13/5/2008 532081 K SERA SERA EDELWEISS ESTATES PRIVATE LIMITED B 508532 30.32
13/5/2008 532081 K SERA SERA EDELWEISS ESTATES PRIVATE LIMITED S 531283 30.33
13/5/2008 530955 KAILASH FICO DYNAMIC PROCESS PVT LTD S 117751 44.95
13/5/2008 505283 KIRLOSAR PN RELIANCE MUTUAL FUND B 373502 421.00
13/5/2008 505283 KIRLOSAR PN FRANKLIN TEMPLETON MUTUAL FUND S 373506 421.00
13/5/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 44519 21.67
13/5/2008 511768 MASTER TRUST GEOMATRIX HK LTD AC DUMAURITIUS CAPITAL LLC B 499990 101.00
13/5/2008 511768 MASTER TRUST G S AUTO LEASING LTD S 185000 101.00
13/5/2008 511768 MASTER TRUST SHIVALIK SECURITIES LTD S 177000 101.00
13/5/2008 511768 MASTER TRUST GALA FINANCE INVESTMENT S 138000 101.00
13/5/2008 531096 MOUNT EVE MI ARISAIG PARTNERS ASIA PTE LTD AC ARISAIG INDIA FUND LTD B 226879 169.99
13/5/2008 531096 MOUNT EVE MI MORGAN STANLEY MAURITIUS COMPANY LTD S 225000 170.00
13/5/2008 524372 ORCHID CHEM DNB ASSET MANAGEMENT ASIA LIMITED B 720000 255.71
13/5/2008 524372 ORCHID CHEM OPG SECURITIES PVT LTD B 411453 258.07
13/5/2008 524372 ORCHID CHEM OPG SECURITIES PVT LTD S 411453 258.24
13/5/2008 512487 RAJENDRA ELE VAISHRAVAN TRADING LTD B 220250 18.75
13/5/2008 512487 RAJENDRA ELE LAKSHMINARAYAN REALTIES AND SERVICES LTD B 220250 18.75
13/5/2008 512487 RAJENDRA ELE SARAF VINODKUMAR S 200000 18.75
13/5/2008 512487 RAJENDRA ELE OPTIMA SECURITIES INDIA PVT LTD S 241000 18.75
13/5/2008 590077 RANKLIN SOLU V MANIKYALA RAO S 30000 120.10
13/5/2008 532731 ROHIT FERRO MORGAN STANLEY MAURITIUS COMPANY LTD B 187687 124.96
13/5/2008 531312 SANRA SOFTW OM EDUCATION IT PVT LTD B 71927 81.53
13/5/2008 531312 SANRA SOFTW AYODHYAPATI INVESTMENT PVT LTD B 129072 80.98
13/5/2008 531312 SANRA SOFTW MAHESH CHOTALAL SHAH B 119085 82.00
13/5/2008 531312 SANRA SOFTW OM EDUCATION IT PVT LTD S 65427 82.05
13/5/2008 531312 SANRA SOFTW AYODHYAPATI INVESTMENT PVT LTD S 129072 80.97
13/5/2008 590046 SMRUTHI ORG NANAK BHAGWANDAS KRISHNANI S 24500 60.73
13/5/2008 508976 SPANC TELESY ALOSHA VANIJYA PVT LTD S 97000 158.37
13/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD B 268879 787.73
13/5/2008 532966 TITAGARH WAG OPG SECURITIES PVT LTD S 268879 788.04
13/5/2008 532765 USHER AGRO MUKESH G KONDE B 160321 145.86
13/5/2008 532765 USHER AGRO UBS SECURITIES ASIA LTD AC SWISS FINANCE CORP. MAU LTD B 109718 145.45
13/5/2008 532765 USHER AGRO MUKESH G KONDE S 160321 145.99
13/5/2008 532765 USHER AGRO MAYANKKUMAR RAMESHCHANDRA BHAT S 151322 145.31
13/5/2008 505930 VISHAL MELL. RACHNA BAGGA B 10000 38.75
13/5/2008 505930 VISHAL MELL. LALIT SINGHAL S 10000 38.75
13/5/2008 531249 WELL PACK PA CHINTAN P SHAH B 51000 47.04
13/5/2008 511601 YASH MANA SA UPSURGE INVESTMENT AND FINANCE B 100000 11.00

Post Session Commentary - May 13 2008

Indian market closed in red due to negative cues from European markets that led to the profit booking by the investors during the final trading hours. Investors take cautious approach to book their position during closing as oil stocks lost ground due to the news from oil ministry that the union cabinet is not going to bear 57% of the total under recovery through oil bonds. Earlier in February this year, the government claimed that it would bear 57% of the total under-recovery of three oil marketing companies- Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) - through oil bonds. The domestic market opened on strong note on the back of favoring global cues. After remaining in the positive territory for most part of the day, the market lost he grip in the final hours to close on a disappointment note. The investors showed their active participation during the first half of the trading session. From the sectoral front, the oil and gas stocks were not in favour and dropped over 2%. The market breadth was positive as 1410 stocks closed in green while 1305 stocks closed in red.

The BSE Sensex closed lower by 108.04 points at 16752.86 and NSE Nifty fell by 54.85 points to close at 4,957.80. It touched an intraday high of 17,085.63 and low of 16,697.47. The BSE Mid Cap closed higher by 10.90 points and Small Cap closed lower by 5.85 points to 6,956.81 and 8,397.71 respectively.

Losers from the BSE are ONG Corp Ltd (63.08%), ACC LTD (2.66%), Wipro Ltd (2.66%), Reliance (2.08%), Bharti Airtel (2.03%), Ranbaxy Lab (1.84%) and Grasim Industries (1.64%).

The Oil & Gas index closed lower by 286.32 points at 10907.37. Lossers are Cairn India (8.48%), Essar Oil Ltd (3.95%), ONG Corp Ltd (3.08%), Aban Offshore (2.77%%) and Bharat Petrolium Corp Ltd (2.6%).

The Capital Goods index declined by 60.85 points to close at 13,060.97. Major losers are KirOil Eng (4.98%), Elecon Eng (3.17%), Praj Industries Ltd 2.67%), Thermax Ltd (1.53%), Crompton Greaves Ltd (1.04%) and SKF India (1.00%).

The IT index closed lower by 32.70 points at 4,265.14. Losers are Fiananc Tech (2.91%), Wipro Ltd (2.66%), TCS Ltd (2.33%), NIIT Tech (1.91%), Tech Mahindra (1.75%), and Infosys Techonologies (1.43%).

The Metal index closed higher by 100.57 points at 15,747.88 gainrs are Nat Aluminium Co (6.24%), JSW SL (3.42%), Gujarat Nre C (2.87%), Hindalco (2.83%), Jindal Steel (2.26%), and Tata Steel (1.01%).

The Consumer Durables index closed higher by 60.32 points at 4,401.45. Gainrs are Titan Ind (7.01%), Lloyd Ele En (2.12%), Gitanjali Ge (0.27%), and Rajesh Export (0.10%).

Market maimed amid sharp volatility

Fall in global crude oil prices and even positive international indices failed to lift market sentiment. The Sensex after gaining 225 points in early trades and touching the day's high of 17,086 drifted into negative territory in late morning trades. In noon trades, sentiment turned extremely bearish as sustained selling in heavyweights, oil & gas, teck and IT stocks dragged the index below the 16,700 mark to an intra-day low of 16,697. Finally the Sensex ended the session with losses of 108 points at 16,753, after gyrating 389 points during intra-day trades. Nifty dropped 55 points to close at 4,958.

However, the market breadth was positive. Of the 2,784 stocks traded on the BSE, 1,410 stocks advanced, 1,305 stocks declined and the remaining 69 stocks ended unchanged. All the sectoral indices were down today. Among sectoral indices, BSE Oil & Gas index dropped 2.56%, BSE Teck index dipped 0.88%, BSE IT index lost 0.76%, BSE CG index declined 0.46% and BSE Auto index was down 0.39%.

Dragging the index ONGC dropped 3.08% at Rs997.10, ACC slumped 2.66% at Rs683, Wipro lost 2.66% at Rs494.20, TCS declined 2.33% at Rs905.70, Reliance Industries moved down 2.08% at 2,501.45 and Bharti Airtel shed 2.03% at Rs821.25. Among other heavy losers, among oil & gas stocks, Cairn Energy lost 8.48% at Rs277.25, Essar Oil slumped 3.95% at Rs250.25, Aban Offshore tumbled 3.08% at Rs997.10, BPCL slipped by 2.68% at Rs348.50 and Reliance Petroleum dipped 2.06% at Rs178.20. IOC however bucked the downtrend and soared closing with marginal gains.

Over 7.26 crore Aishwarya Telecom shares changed hands on the BSE followed by IFCI (3.50 crore shares), Ispat Industries (1.47 crore shares), Reliance Petroleum (1.18 crore shares) and Reliance Natural Resources Ltd (1.16 crore shares).

Nifty settles below 5,000; IT stocks give up early gains

Indian equities reversed early gains in choppy trade to settle lower closely mirroring European markets which opened after Indian market. Latest data showing higher than expected UK inflation figures pulled European markets lower after firm start. The S&P CNX Nifty slipped below 5,000 mark.

The market had opened higher tracking firm global markets with the Sensex surging past 17,000 mark in opening trade. It failed to sustain higher levels. The market breadth was just about positive, after staying strong throughout the day.

The 30-share BSE Sensex slipped 108.04 points or 0.64% at 16,752.86. Sensex lost 163.43 points at day’s low of 16,697.47 touched in late trade. Sensex had opened 147.13 points higher at 17,008.03. The barometer index hit a high of 17,085.63 in early afternoon trade. At the day’s high, Sensex gained 224.73 points.

The broader based S&P CNX Nifty shed 54.85 points or 1.09% at 4,957.80. Nifty May 2008 futures were at 4954, a discount of 3.80 points as compared to spot closing

As per provisional data, foreign funds bought shares worth a net Rs 73.93 crore today. Domestic funds bought shares worth a net Rs 266.50 crore.

The market breadth was just about positive, after staying strong throughout the day. On BSE 1366 shares advanced as compared to 1341 that declined. 76 remained unchanged.

The BSE Mid-Cap index was up 0.16% to 6,956.81 while the BSE Small-Cap index declined 0.07% to 8,397.71. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 6596 crore as compared to Rs 6,007.51 crore yesterday, 12 May 2008. Turnover in NSE’s futures & options segment amounted to Rs 38107.72 crore as compared to Rs 41000.8 crore yesterday, 12 May 2008.

Sectoral indices on BSE displayed mixed trend. The BSE FMCG index (up 0.57% to 2,500.33), BSE PSU index (down 0.32% to 7,713.53), BSE Bankex (up 0.43% at 8,601.84), BSE Auto (down 0.39% at 4,669.95), BSE Health Care index (up 0.02% at 4,178.25), BSE Metal index (up 0.64% to 15,747.88), BSE Realty index (up 0.13% at 7,747.12), BSE Power (down 0.18% to 3,213.24), BSE Capital Goods index (down 0.46% at 13,060.97), and BSE Consumer Durables index (up 1.39% to 4,401.45), outperformed the Sensex.

The BSE Oil & Gas index (down 2.56% at 10,907.37), BSE TecK index (down 0.88% to 3,379.07), BSE IT index (down 0.76% to 4,265.14), underperformed the Sensex.

Among the 30-member Sensex pack, 21 declined while the rest advanced.

Metal stocks gained on renewed buying. India’s largest private sector aluminium company in terms of sales Hindalco Industries advanced 2.97% to Rs 180.20 on 8.84 lakh shares. It was the top gainer from Sensex pack.

Tata Steel (up 1.21% to Rs 853), JSW Steel (up 3.46% to Rs 959.90) and National Aluminium Company (up 7.26% to Rs 487) advanced.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) slumped 2.13% to Rs 2500.05 on 7.52 lakh shares.

Jaiprakash Associates (up 1.97% to Rs 251.25), and ICICI Bank (up 0.42% to Rs 882), edged higher from Sensex pack.

IT stocks pared gains. India’s fourth largest software services exporter Satyam Computer Services rose 1.22% to Rs 495.50, off session's high of Rs 505.70.

India’s largest software services exporter TCS slumped 3.16% to Rs 898, off sharply from day’s high of Rs 945. It was the top loser from Sensex pack.

Infosys Technologies (down 1.83% to Rs 1740, off day’s high of Rs 1813) and Wipro (down 3.08% to Rs 492.05, off day’s high of Rs 510.95), dropped.

India’s largest commercial bank in terms of total assets State Bank of India rose 0.40% to Rs 1670 after is signed a memorandum of understanding with Insurance Australia Group for a general insurance venture to tap the fast-growing Indian market.

Oil exploration heavyweights corrected today, as soaring crude oil prices took a pause after recent rally. Oil & Natural Gas Corporation, the country’s largest state run oil exploration company in terms of sales, slipped 2.60% to Rs 1002.

Cairn India, the country’s largest private sector oil exploration company tumbled 8.90% to Rs 276 on high volumes of 86.38 lakh shares.

Bharti Airtel, the country’s largest telecom services provider in terms of market capitalisation shed 2.05% to Rs 821.10. UAE's Emirates Telecommunications Corp said on Monday, 12 May 2008, it was evaluating a bid for South African telecom firm MTN. This may compel Bharti Airtel to raise its indicative offer, which media reports said valued MTN at about $37 billion.

Engineering heavyweights Bharat Heavy Electricals (down 0.58% to Rs 1738), and Larsen & Toubro (down 1.69% to Rs 2787), declined

DLF, the country’s largest real estate developer in terms of market capitalisation shed 1.25% to Rs 614.10. As per reports, the company will file papers for $2 billion real estate investment trust (REIT) with the Singapore authorities next month.

Reliance Communications, the country’s second largest telecom services provider in terms of market capitalisation lost 0.90% to Rs 545. The company has formed a joint venture with French-US equipment firm Alcatel-Lucent to offer managed network services to domestic as well as international telecom operators.

Tata Motors (down 2.48% to Rs 652), Ranbaxy Laboratories (down 2.06% to Rs 484) and ACC (down 2.94% to Rs 681), edged lower from Sensex pack.

Recently listed Aishwarya Telecom jumped 5.81% to Rs 104.80. It was the top traded counter on BSE with turnover of Rs 592.02 crore. Cairn India (Rs 247.16 crore), Reliance Petroleum (Rs 216.72 crore), IFCI (Rs 212.81 crore) and Reliance Industries (Rs 190.77 crore) were the other turnover toppers.

Aishwarya Telecom, also, topped the volume chart clocking volumes of 7.26 crore shares on BSE followed by IFCI (3.50 crore shares), Ispat Industries (1.47 crore shares), Reliance Petroleum (1.19 crore shares) and Reliance Natural Resources (1.17 crore shares), in that order

Among the other side counters, Rallis India plunged 6.19% to Rs 422.25 after it went Rs 16 per share ex-dividend from today.

MphasiS jumped 8.32% to Rs 239 on reports Hewlett-Packard was in talks to buy outsourcing firm Electronic Data Systems, which owns a majority stake in the Indian software firm. If the deal fructifies, it will trigger the mandatory open offer for 20% stake in Mphasis, as per the Securities & Exchange Board of India (Sebi) takeover regulation. EDS holds 60.89% stake in MphasiS.

Thermax shed 1.13% to Rs 459 despite reports the company plans to invest over Rs 200 crore in this financial year for expansion purpose.

GAIL India dropped 2.20% to Rs 406 after posting a marginal 6.12% rise in net profit to Rs 722.38 crore on 25.99% increase in total income to Rs 5034.95 crore in Q4 March 2008 over Q4 March 2007. The company announced the results during trading hours today, 13 May 2008.

Phillips Carbon Black fell 3.84% to Rs 181.35. The company said on Monday, 12 May 2008, it has signed a joint venture agreement with subsidiaries of Vietnam National Chemical Corp to set up a carbon black facility in Vietnam.

Indiabulls Real Estate surged 3.30% to Rs 535 after reporting 362.9% surge in net profit to Rs 27.82 crore on 765.20% increase in net sales to Rs 28.81 crore in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on Monday, 12 May 2008.

Bajaj Holdings & Investments slipped 0.90% to Rs 676. As per reports Bajaj Auto plans to sign a joint venture with European car maker Renault and Japanese giant Nissan to manufacture a small car in India with a price tag of $2500.

European markets, which opened after Indian markets, reversed early gains after UK’s consumer price inflation rose to an annual rate of 3% in April 2008, which dampened expectations of near-term interest rate cuts. Key benchmark indices in Germany (down 0.30% to 7,015.05), France (down 0.41% to 4,955.47), and United Kingdom (down 0.79% to 6,171.50) edged lower.

Asian markets were trading higher barring China’s Shanghai Composite which fell 1.84% at 3,560.62 led on uncertainty following a deadly earthquake in southwest China on Monday, 12 May 2008 and the central bank's announcement of the fourth bank reserve ratio hike this year.

Hang Seng (up 1.95% at 25,552.77), Nikkei 225 Average (up 1.53% at 13,953.73), Straits Times (up 0.73% at 3,203.42), Seoul Composite (up 1.05% at 1,842.80), Taiwan Weighted (up 1.81% at 8,989.15) advanced.

US markets rallied yesterday, 12 May 2008 led by financials and technology stocks after the world's largest bond insurer MBIA said it has enough cash to cover claims. Also the drop in oil prices helped ease investors worries about inflation's impact on consumer spending. The Dow Jones industrial average rose 130.43 points, or 1.02%, to 12,876.31. The Nasdaq Composite index rose 42.97 points, or 1.76%, to 2,488.49.

Back home, frenzied buying in late trade helped market snap its five-day slide yesterday, 12 May 2008. The 30-share BSE Sensex rose 123.83 points or 0.74% to 16,860.90 and the broader based S&P CNX Nifty was up 30.05 points or 0.60% at 5,012.65, on that day.

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.

New York's main oil futures contract, light sweet crude for June delivery, was 73 cents lower at $123.50 as profit taking helped cool a red-hot market.

Morning Call - May 13 2008

Market Grape Wine :

In House :

Nifty at a support of 4980 and 4942 with a resist of 5030 and 5070

Cash:

Buy: Relcap above 1305 tgt of 147 with aSL of 1284

Buy: Kotak bank above 743 tgt of 765 with aSL of 736

F&O:

Buy: L& t above 2854 tgtt of 2950 with a Sl of 2820

buy: Rpl above 180 tgt of 191 with a Sl of 175

Positinal buy:

Buy: Ranbaxy above 480~486 tgt of 535 with a Sl of 475

Buy: Suzlan above 277~279 tgt of 320 with aSL of 270

Out House :

Markets at a support of 16686 & 16786 and resistance at 17017 & 17171 levels .

Buy : RPL

Buy : RIL

Buy : Infy & Wipro

Buy : NTPC & RPower

Buy : BombayDye

Buy : SKumar

Buy : Coreproject

Buy : IFCI

Dark Horse : SKumar ,Emami , CORE, INFY , RIL , GujNRE & RPL

Pre Market Watch - May 13 2008

The Indian Market is likely to have a positive opening as the US market closed in green and Asian market is trading with marginal gains. On Monday, the Indian market beat its previous day losing trend to close in green as the investors showed some buying interest towards the close of the session. Despite disappointing industrial output data that stood at 3%, which was six years low the market managed to recover from the initial fall. The reality stocks were not in favour as most selling was reported from these baskets. However oil and gas stocks were in limelight. The BSE Sensex closed higher by 123.83 points at 16,860.90 and NSE Nifty went up 30.05 points to close at 5,012.65. We expect that the market may remain range bound during the trading session.

On Monday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 130.43 points at 12,876.31 along with S&P 500 grew by 15.30 points to close at 1,403.58 and NASDAQ higher by 42.97 points to close at 2,488.49.

Indian ADRS ended mixed. In technology sector, Infosys went up (1.56%) along with Satyam (1.54%), Wipro (1.39%) and Patni Computers by (0.70%). In banking sector, HDFC bank grew by (0.79%) while ICICI bank dropped by (0.61%). In telecommunication sector, MTNL and Tata Communication slipped by (0.20%) and (1.18%). Dr Reddy’s declined by (1.77%).

Today the major stock markets in Asia are trading higher. Taiwan Weighted is trading up by 125.91 points at 8,955.96 along with Japan’s Nikkei trading higher by 88.49 points at 13,831.85 and Hang Seng index also trading at 25,071.43 up 8.26points.
The FIIs on Thursday stood as net seller in equity. The gross equity purchased was Rs3,368.70 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,739.20 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs(370.50) Crore and net debt was Rs0.00 Crore.

Today, Nifty has support at 4,953 and resistance at 5,182 and BSE Sensex has support at 16,581 and resistance at 17,134.

Market braced for higher opening

Indian equities are geared for higher opening today, 13 May 2008 following firm cues from global markets. Retreating crude oil prices from record high may also lift the sentiment.

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 1680 companies showed 18.40% rise in net profit on 22.80% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 29.80% rise in net profit on 23.60% rise in net sales in the year ended March 2008 over year ended March 2007.

Asian markets were trading higher barring China’s Shanghai Composite which fell 49.42 points or 1.36% at 3,577.56 led on uncertainty following a deadly earthquake in southwest China on Monday, 12 May 2008 and the central bank's announcement of the fourth bank reserve ratio hike this year.

Hang Seng (up 0.03% at 25,071.43), Nikkei 225 Average (up 0.64% at 13,831.85), Straits Times (up 0.28% at 3,189.10), Seoul Composite (up 0.05% at 1,824.60), Taiwan Weighted (up 1.43% at 8,955.96) advanced.

US markets rallied yesterday, 12 May 2008 led by financials and technology stocks after the world's largest bond insurer MBIA said it has enough cash to cover claims. Also the drop in oil prices helped ease investors` worries about inflation`s impact on consumer spending.

The Dow Jones industrial average rose 130.43 points, or 1.02%, to 12,876.31. The Nasdaq Composite index rose 42.97 points, or 1.76%, to 2,488.49.

Back home, frenzied buying in late trade helped market snap its five-day slide yesterday, 12 May 2008. The 30-share BSE Sensex rose 123.83 points or 0.74% to 16,860.90 and the broader based S&P CNX Nifty was up 30.05 points or 0.60% at 5,012.65, on that day.

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.

As per provisional data, foreign funds sold shares worth a net Rs 210.57 crore yesterday, 12 May 2008. Domestic funds bought shares worth a net Rs 241.01 crore on that day.

Foreign institutional investors (FIIs) were net buyers of Rs 572.46 crore in the futures & options segment yesterday, 12 May 2008. They were net buyers of index futures to the tune of Rs 184.03 crore and bought index options worth Rs 311.27 crore. They were net buyers of stock futures to the tune of Rs 73.19 crore and bought stock options worth Rs 3.97 crore.

New York's main oil futures contract, light sweet crude for June delivery, was 73 cents lower at $123.50 as profit taking helped cool a red-hot market.

Trading Calls - May 13 2008

Nifty (5013) Supp 4970 Res 5080

Buy Tata Chem (343)
SL 338 Target 353, 358

Buy Praj Industries (198)
SL 193 Target 210, 215

Buy Tata Steel (842)
SL 837 Target 855, 860

Buy RCOM (550)
SL 545 Target 563, 568

Sell HCC (131)
SL 135 Target 125, 122

Can’t enjoy markets, enjoy your holidays!

When the boss is a way, work becomes a holiday.

Such has been the market's ways this year that quite a few market players, including a high-profile investor, have taken a long summer break. Many more may choose to go on holidays as the market may remain rangebound and choppy in the near term. Come to think of it, a break from the market isn't a bad idea at this point in time. There are no immediate triggers for the main indices to head firmly higher. FII inflows have tapered off. Inflation is running at 3 1/2 year high. Industrial production hit a six-year low in March. Though a high base effect may be the reason for it, but overall economic activity has definitely slowed considerably.

The bulls are hoping for a good monsoon to perk up the mood. Talking of rains, the weather bureau on Monday reported monsoon has hit the east coast five days in advance. A good monsoon could lift farm output and thus boost overall demand and more importantly sentiment. An improved agriculture produce may also have a soothing effect on inflation. However, all this is in a realm of conjecture at this juncture. A lot hinges on the actual rainfall and its spatial distribution across the country. Any disappointment on this front will only add to the string of headwinds. The market will continue to witness sideways movement till we get some clarity on monsoon (for lack of other reasons).

Today, we expect a brighter start given the overnight rally on Wall Street. Asian markets are also not doing too badly. Markets also rose in Europe yesterday. However, nobody's sure whether the early gains will be sustained as FIIs remain net sellers. Crude oil is still above $123 a barrel. We haven't had a fuel price hike since long, which has put the oil PSUs in a major trouble. The situation is no different for steel and cement companies in the face of Government's diktat on maintaining price lines. The steep run-up in oil prices and wild swings in the currency market are also putting pressure on several other sectors. Be stock specific. Focus on quality scrips and avoid aggressive buying.

Results Today: DCM Shriram Consolidated, Gail India, Omnitech Solutions, Usha Martin and Varun Shipping.

FIIs were net sellers of Rs2.1bn (provisional) in the cash segment yesterday while local institutions poured in Rs2.41bn. In the F&O segment, foreign funds were net buyers of Rs5.72bn. On Friday, FIIs were net sellers of Rs3.7bn. Mutual Funds were net sellers of Rs3.33bn.

Asian stocks rose for a second day, led by technology companies and automakers, after higher profit forecasts by Fujitsu Ltd. and Isuzu Motors Ltd. bolstered speculation earnings will withstand a global slowdown.

The MSCI Asia Pacific Index climbed 0.4% to 149.67 as of 10:50 a.m. in Tokyo. About five stocks gained for every three that fell. The Nikkei 225 Stock Average rose 0.7% to 13,844.97. All other Asian benchmark indexes advanced.

Chinese stocks fell after the strongest earthquake in 58 years struck southwestern Sichuan province, killing 10,000 people and damaging power plants and transmission lines.

The CSI 300 Index, which tracks stocks traded in Shanghai and Shenzhen, lost 22.06, or 0.6%, to 3,882.86, paring an earlier loss of as much as 3.2%. As of 10:27 a.m. local time, 174 of the 300 stocks and seven of the 10 industry groups were lower, led by financial and industrial companies.

US stocks surged as investors shrugged off a spate of negative corporate news and opted to snap up shares battered in last week's selloff. Retailers rallied in anticipation of better-than-estimated earnings and financial shares climbed after the world's largest bond insurer said it has enough cash to cover claims.

Wal-Mart jumped on speculation that profit grew as discounts lured shoppers away from competitors. MBIA led financial shares to their first advance in four days after the debt guarantor said it has ample liquidity and won't have to raise more money. EDS surged the most ever on a report that H-P may buy the company.

The S&P 500 Index added 15.30 points, or 1.1%, to 1,403.58. The Dow Jones Industrial Average climbed 130.43 points, or 1%, to 12,876.31. The Nasdaq Composite Index rose 42.97 points, or 1.8%, to 2,488.49.

Market breadth was positive. Almost four stocks climbed for each that fell on the New York Stock Exchange, the broadest rally since April 18.

Tuesday brings reports on April retail sales and March business inventories and earnings reports from Liz Claiborne and Wal-Mart.

The Nasdaq got a boost from Research In Motion (RIM), which soared after it announced its new version of its best-selling Blackberry smartphone, which has been updated with features meant to make it more of a competitor to Apple's iPhone.

Bond insurer MBIA reported a $2.4bn quarterly loss as it contended with ongoing problems in the credit market and took billions in writedowns. Despite this, shares jumped 4.5%.

Sprint Nextel reported results that fell from a year earlier, as it lost monthly subscribers and had to pay severance and other charges. The results, excluding items, nonetheless topped analysts' forecasts. Shares fell 1.5%.

FedEx, often seen as a proxy for the economy, warned that fiscal fourth-quarter earnings won't meet forecasts due to surging fuel costs. Shares were little changed.

AIG shares slumped 4.5% in active trading after the company's former CEO said the insurer was in crisis and should postpone its annual general meeting scheduled for Wednesday.

Clear Channel rallied 9.6% on news that the company and its prospective buyers are in settlement talks regarding whether banks have to fund promised loans of $19.5bn. Earlier, a judge delayed the start of the trial over financing, raising hopes that a settlement could be reached.

Cablevision is buying New York newspaper Newsday for $650mn from Tribune Co., beating out News Corp CEO Rupert Murdoch, who withdrew his own $580mn bid.

US light crude oil for June delivery fell $1.73 to settle at $124.23 per barrel in New York after settling at a record $125.96 on Friday. The national average price for a gallon of regular unleaded gas rose to a record $3.718 from $3.707 the previous day, according to AAA. It was the fifth record in a row.

COMEX gold for June delivery fell 90 cents to settle at $885.80 an ounce. The dollar fell versus the euro and rose against the yen. Treasury prices fell, raising the yield on the benchmark 10-year note to 3.78% from 3.77% late on Friday.

European shares gained ground. The pan-European Dow Jones Stoxx 600 rose 0.3% to 325.95, with HSBC Holdings' shares up 1.9%. The UK's FTSE 100 closed up 0.3% at 6,220.60, while Germany's DAX 30 rose 0.5% to 7,035.95 and the French CAC-40 climbed 0.3% to 4.976.21.

In the emerging markets, the Bovespa in Brazil gained 1.1% at 70,415 while the IPC index in Mexico was down 0.1% at 30,637. The RTS index in Russia rallied 1.6% to 2321 and the ISE National 30 index in Turkey dropped 1.1% to 51,216.

Bulls may carry momentum further

Markets made a strong come back in the later half of the trading session on back of buying witnessed in the IT, Fertilizer, FMCG and Telecom stocks. Markets nose dived in the mid-afternoon trades after IIP numbers for March came in at a shocking low of 3% vis-à-vis 8.6% in the month of February. However, the Nifty index closed above the 5k mark recovering over 100 points from its days low. The Mid-Cap and the Small-Cap stocks also witnessed offloading. Finally, the BSE benchmark Sensex ended 123 points lower to close at 16,860 and the Nifty index gained 30 points to close at 5,012.

Overall about 920 stocks advanced; 1,777 stocks declined while 50 stocks remained unchanged. Among the 50-Nifty 31 stocks ended in green and 18 stocks ended in red.

Great Offshore was down by a percent to Rs673. According to reports, the company acquired Cayman Islands-based SeaDragon Offshore for US$1.4bn. The scrip touched an intra-day high of Rs684 and a low of Rs655 and recorded volumes of over 29,000 shares on BSE.

Satyam Computer surged by over 3.5% to Rs489 after reports stated that the company has drawn up capital expenditure of US$125mn to develop four SEZs. The scrip touched an intra-day high of Rs491 and a low of Rs471 and recorded volumes of over 8,00,000 shares on BSE.

PTC India was trading lower by 2% to Rs92. The company announced that it has formed a joint venture to buy Indonesia coal assets. The company also said that it plans to set up electricity exchange within a month. The scrip touched an intra-day high of Rs92 and a low of Rs88 and recorded volumes of over 2,00,000 shares on BSE.

NTPC edged lower by 0.5% to Rs192. The company announced its plans to allocate 0.5% of profit for R&D fund and has also planned R&D fund for development of sustainable development. The scrip touched an intra-day high of Rs193 and a low of Rs189 and recorded volumes of over 10,00,000 shares on BSE.

Bajaj Holdings was down by over 2.6% to Rs682. The company announced that they would form a joint-venture company to develop, produce and market the car code-named ULC with wholesale price range starting from US$2500.

The new joint-venture company will be 50% owned by Bajaj Auto, 25% by Renault and 25% by Nissan. Targeting the growing Indian new vehicle market, the ULC will be made at an all-new plant to be constructed in Chakan (Maharashtra state) in India. Initial planned capacity will be 400,000 units per year. The scrip touched an intra-day high of Rs693 and a low of Rs670 and recorded volumes of over 10,000 shares on BSE.

Reliance Industries gained by a percent to Rs2554. The company plans to convert its fuel retail outlets, which were recently closed owing to unviable operations, into malls and multiplexes, said reports. Alloting about Rs50bn for the project, company is planning to develop 700 to 800 properties at important locations. Company, has also approached its fuel dealers with offers to buy out the properties they own, according to reports. The scrip touched an intra-day high of Rs2564 and a low of Rs2480 and recorded volumes of over 8,00,000 shares on BSE.

Ashok Leyland ended flat at Rs39. The company said that it would form a venture with JBM Auto and would spend Rs1bn. The scrip touched an intra-day high of Rs39 and a low of Rs37 and recorded volumes of over 14,00,000 shares on BSE.

Wall Street Finance ended with modest gains after being locked at 10% upper circuit, the scrip gained only by a percent to Rs44. The company’s 33.1% equity changed hands in a single trade. Around 3.85mn shares were traded at ~Rs45 per share. The scrip touched an intra-day high of Rs48.05 and a low of Rs39.75 and recorded volumes of over 41,00,000 shares on BSE.

Hindustan Zinc was down by 2.7% to Rs625. The company announced that it lowered lead prices by 3.7%or Rs4,500 to Rs1,17,200 per metric ton from May 8. Zinc prices were kept unchanged at Rs98,500 per ton. The scrip touched an intra-day high of Rs638 and a low of Rs618 and recorded volumes of over 14,000 shares on BSE.

Corporate News

Bharti Airtel is expected to submit revised bid to acquire South Africa’s MTN as Dubai based Emirates Telecommunications (Etisalat) joins the race. (ET)
Tata Motors ‘Nano’ project is on schedule to roll out of the Singur factory during the latter part of 2008. (BL)
Ranbaxy has signed a strategic product development agreement with German pharma major Merck for anti-infective drugs. (ET)
NTPC plans to acquire a majority stake in coal mines in Indonesia, with reserves of ~200-300mn tons. (DNA)
Phase II of the Simhadri thermal power plant of the NTPC, adding two more units of 500 MW each, will be completed by 2011 and the additional power will be shared among the southern States. (BL)
Videocon Industries is planning to enter into hospitality and hydropower businesses. The company is in talks with the Uttarakhand government for various projects. (BS)
Jindal Stainless has signed a joint venture agreement with the Indonesia-based PT Antam Tbk to develop a nickel smelting and stainless steel facility in North Konawe, South East Sulawesi at an investment of about Rs29bn. Antam will hold 55% stake in the project. (BS)
Bharti Airtel has announced a tie-up with US-based Apple Inc to bring the popular GSM-based iPhone in the country. (FE)
French-US equipment firm Alcatel-Lucent has formed a JV with Reliance Communications to offer managed-net-work services to domestic as well as international telecom operators. (ET)
ONGC launched India's first pilot plant to extract helium from natural gas at Kuthalam in Nagapattinam district. (BS)
Reliance, ITC queue up for railways’ land of 4,800 hectares, to be leased out to retailers and logistic companies. (ET)
Tata Communications has partnered with US based Sonus to build network to offer phone calls over the internet globally. (ET)
Arvind Mills plans to invest ~Rs4bn in expanding its retail presence. (ET)
ONGC has put on hold its plans for rolling out 1,600 fuel stations together with MRPL, due to rising crude oil prices. (ET)
Arunachal Pradesh has cancelled NTPC’s contract to build two hydroelectric power projects in the state at an estimated cost of Rs225bn. (Mint)
Power Finance Corp. to raise Rs2bn through bonds. (Mint)
SBI has decided to partner Insurance Australia Group for its proposed non-life joint venture. (ET)
Aurobindo Pharma has got approval from the Medicines Control Council to manufacture and market nine products in South Africa. (Mint)
Tata Chemicals and Ireland based Total Produce JV company Khet-Se Agriproduce has launched cash & carry business in Punjab. (ET)
Mercator Lines has drawn up a Rs40bn capital expenditure programme for the next two years to expand its fleet of ships. (BL)
Lanco Hills Technology Park Private Limited, part of the Lanco group has entered into an agreement with Global Hyatt Corporation for the management of the 400-room Grand Hyatt Hyderabad, due to open in early 2011. (BS)
Phillips Carbon Black Ltd has doubled the investment commitment in its Vietnam joint venture to Rs3bn from Rs 1.5bn as the capacity for the plant has been raised to 100,000 tons from 50,000 tons planned earlier. (BL)
Graphite India Ltd will expand graphite electrode capacity by 10,500 tons at a cost of Rs1.9bn at its Durgapur plant. (BL)
Koutons India Retail Ltd will expand its product line and launch its own brand of shoes by the third quarter of this year under the brand name of ‘Koutons Footwear'. (BS)
Country Club India Ltd has forayed into ayurvedic spa business. (BS)
Kewal Kiran Clothing Ltd had raised Rs806mn by issuing 31mn equity shares of Rs10 each at a premium of Rs250 a share. (BL)
DLF will file papers for US$2bn REIT in June 2008. (DNA)
The UK-based promoter-director Bhulo (Bhupendra) Kansagra of Delhi-based low-cost carrier SpiceJet is willing to divest the family stake in the airline. (BS)
Another round of price hike has begun in India’s FMCG industry. Tata Tea Ltd is raising the price across categories this month while ITC Foods is increasing prices of its select brands. Emami Ltd has hiked the price of its hair oil brands and Marico Ltd is in the process of raising the prices of its select products. (FE)
Real estate developer Paramount Group plans to invest ~Rs11bn in three projects over the next two years. (ET)
Texas Pacific Group controlled Parkway Hospital is leading the race to buy 25-30% stake in Manipal Hospitals for over Rs5bn. (ET)
Cement companies may withdraw or curtail their proposed investment of ~Rs50bn in setting up nearly 10mn tons of cement manufacturing facilities in the north-east. (ET)

Economic News

Top banks in India said that they have been advised by none other than the Union Finance Minister to shrink their NIMs to acceptable levels. (BL)
The Indian steel industry will take a decision on revising its prices after the government reviews the export duty on the alloy. (BS)
Loss from retail sale of cooking gas (LPG) has fallen 3.26% from Rs316 per 14.2-kg cylinder to Rs306 per cylinder over the last one month. (BS)
IT exports from India are poised to reach US$80bn within three years effectively doubling from US$40bn achieved in 2007-08. (BL)
TRAI has sought views from the industry and experts on the issue of allowing ISPs to provide internet telephony to call landline or mobile subscribers, within the country. (BL)
Post-CRR hike by 75 basis points, the banks are planning to hike their sub-PLR rates and other retail rates like credit card and auto loan rates. (FE)
China’s central bank has raised CRR by 0.5% w.e.f. May 20, 2008. (DNA)

Company Background - Maruti Suzuki

Maruti Udyog Ltd (MUL) was incorporated in February 1981 through an Act of Parliament, as a Government company with Suzuki Motor Corporation (SMC) of Japan. It was established to achieve the goals of modernization of Indian Automobile Industry, production of vehicles in large volumes and production of fuel efficient vehicles. Suzuki was an ultimate one to achieve this all because of their expertise in small cars segment.

The Joint Venture agreement was signed between Government of India and Suzuki Motor Corporation in October 1982. The Company went into production in a record time of 13 months marking the beginning of a revolution in the Indian automobile industry. The First car was rolled out for sale in December 1983. Initially, Suzuki was holding 26 per cent Stake. Now MUL is a subsidiary of Suzuki with an equity holding of 54.21 per cent.

Maruti Udyog has been the leader of the Indian car market for about two decades. Its manufacturing plant, located in Gurgaon, has an installed capacity of 3,50,000 units per annum, with a capability to produce about half a million vehicles.

Maruti produces cars with world-class contemporary Japanese Technology, suitably adapted to Indian conditions and Indian car users. It also provides users with a range of cars to suit different needs. The company has a portfolio of 11 brands, including Maruti 800, Omni, Premium small car Zen, International brands Alto and WagonR, off-roader Gypsy, mid size Esteem, Luxury car Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7.

In 2001-02, the Cabinet Committee on divestment approved the exit of Government of India from the Joint Venture, Suzuki Motor Corporation, Government of India and the Company executed a Revised Joint Venture Agreement (RJVA). Pursuant to RJVA, the company made a further issue of 1,219,512 equity shares of Rs.100 each at a premium of Rs. 3,180 share each. On 30th May, 2002, the company allotted 1,216,341 equity shares aggregating to Rs. 398.96 crores in favour of SMC, which include the portion fully renounced by GOI besides SMC's own entitlement. 3,171 Equity Shares were duly cancelled as the Maruti Udyog Limited Employees Mutual Benefit Fund decided not to subscribe its right entitlement. After this allotments, the company has become the subsidiary of SMC.

In 2002-03, Pursuant to the Revised Joint Venture, the Government of India offered 72,243,300 equity shares, equivalent of 25 per cent of the company's share capital, for sale to the public. To enable the retail investor to participate widely in this offer, the company subdivided the face value of an equity share of Rs. 100 to Rs. 5. Despite depressed sentiment in the capital market, the issue was fully subscribed within three hours of opening.

Encouraged by the overwhelming response, the GOI exercised the greenshoe option and off-loaded an additional 10 per cent of the issue or 2.5 per cent of the company's share capital.

In the same year, Maruti Udyog and Suzuki Motor Corporation had jointly set-up a Joint-Venture company under the name Suzuki Metal India Limited (SMIL) to engage in the business of, inter alia, manufacturing Aluminium die casting or low pressure casting engine parts such as cylinder blocks, transmission cases, cylinder heads for four wheelers and two wheelers. This was created with a view to reduce material cost besides ensuring a smooth and uninterrupted supply.

In 2004-05, MUL in collaboration with Suzuki Motor Corporation has established a new company Maruti Suzuki Automobiles India Ltd. (MSAIL) for setting up a new manufacturing plant at Manesar. In this new entity, the company will hold 70 per cent equity the balance will be held by SMC. The company has also started the works to set up a new Engine and Transmission facility in collaboration with Suzuki Motor for the manufacture of diesel engines, petrol engines and transmission assemblies for four wheeled vehicles. This will reduce the cost of production of cars.

In 2006, Maruti Udyog acquired the 30 per cent equity stake of SMC in Maruti Suzuki Automobiles India Ltd. Subsequently, the company decided to amalgamate MSAIL with itself. Now, it has been amalgamated with MUL.

In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor Corporation's R & D hub for Asia. It has introduced upgraded versions of WagonR Zen and Esteem, fully designed and styled in-house. Maruti's contribution in the development of the Indian auto industry is a paramount one. Maruti tops customer satisfaction again for sixth year in a row according to the J.D. Power Asia Pacific 2005 India Customer Satisfaction Index (CSI) study. The company's quality systems and practice have also been rated as a 'benchmark for the automotive industry world-wide' by A V Belgium, global auditors for International Organisation for Standardisation.

Maruti has also spread its wing in auto related service businesses. These were aimed at enhancing customer experience while building long term relationship. The company's service businesses including sale and purchase of pre owned cars (True Value), lease and fleet management service for corporates (N2N), Maruti Finance and Maruti Insurance are enabling the company to offer one-stop shop for the customers.

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Company Background - Infosys Technologies

Infosys technologies limited, is a public limited and India's second largest software exporter company incorporated in the year 1981 as Infosys consultants private limited by Mr.N.R.Narayana Murthy at karnataka, who is chairman and chief mentor of the company. It became public limited company in the year 1992. It has received CMM-5 status and it functioning collaborated with ANALOG DEVICES INC of USA. Infosys is a groundbreaking company in the field of information technology and it enjoys the privilege of being a dept free company. It's only the company to be part of the major global index. Company offers the services of consulting, process re-engineering, modular global sourcing and Business Process Outsourcing services. It has developed finacle, a universal banking solution to large and medium size banks across India and oversees. The company has entered in marketing and technical alliance with FileNet, IBM, Intel, Microsoft, Oracle and System Application Products. Infosys is listed in BSE, NSE and NASDAQ.

Infosys, the country's second-biggest IT/ITES services companies, which was the first Indian company to be listed on the NASDAQ at the year 1999. Infosys also forms a part of the NASDAQ-100 index. Continuously the year 2001, 2002 and 2003 company wins the National award for excellence in corporate governance conferred by the Govt of India. In the year 2003 it acquired Expert Information Services in Australia for $22.9 million. Its has five wholly owned subsidiaries namely as Infosys technologies China, Infosys technologies Australia, Infosys consultancy INC, Infosys BPO SRO and Infosys BPO Ltd previously known as progeon. CRISIL assigned the " CRISIL GVC level 1" rating for corporate governance. In the year 2004 company crosses US $ 1 billion in revenue. 2005 was the year the largest international equity offering of US $ 1 billion from India by Infosys and in 2006 company celebrated 25th year. Infosys selected as 'Best Outsourcing Partner' by the readers of Waters, a publication covering the needs of chief information officers in the capital market firms. In 2007 it increased stake value in progeon to 98.9 % after acquiring shares from Citicorp International Financial Company and a subsequent buy back offer to its share holders. Infosys had taken over Philips' finance and administration business process outsourcing (BPO) centers spread across India, Poland and Thailand for $28 million. A Finacle from Infosys completes Phase 1 of implementation in Stroyvestbank subsidiary structure of URALSIB BANK.

Infosys Technologies has 47% of core business assets stagnating. The company scanning the markets of Europe and Japan for acquisitions in the price band of $200-$300 million to energies its non-linear business strategy as well as to expand its geographic reach. Infosys set up various Special Economic Zone that for the company has an additional tax benefit. It set up another Special Economic Zone unit in Chandigarh which will be eligible for 100 % deduction of profit from exports tax calculation for the first five years followed by 50% deduction for next five years. Infosys has been pursuing its expansion plans over the past few years. As of March 2007 it has a capital expenditure commitment of Rs 655 crs, it is in the process of expanding its operations by adding amount 32,967 seats to its completed 58.488 seats. The entire capital expenditure was funded out of internal cash flows. The future enhancement of the company is to emerge the developing economies changing the business landscape with help of accessible talent pools and the adoption of non-linear growth model, it is a long term strategy. Infosys Technologies Ltd has partnered with ACDI/VOCA for promotes broad-based economic growth and to develop information and communication technology- enabled application to improve efficiencies in the agro supply chain in India. As of April 2008 the company acquired Internet Protocal (IP) from an Australian company to add more functionality to finacle. The IP, that provides a comprehensive set of financial tools to company'

Today's Pick - CESC

We recommend a buy in CESC from a short-term perspective. The charts of CESC show that it has been on a medium-term up trend form its March 2008 low of Rs 360 level. The stock conclusively penetrated the medium-term down trendline (that commenced from the January high of Rs 715) in mid-April and progressed upwards. This up-move has also taken the stock above its50-day moving average.

The daily momentum indicator has re-entered the bullish zone form the neutral region and the daily moving average convergence and divergence is featuring in the positive territory. The fact that the stock is sustaining above the medium-term up trendline, is also a positive for the stock.

We expect it to rally to our price target level of Rs 552 in the forthcoming trading sessions. Investor with short-term perspective can buy CESC while keeping the stop-loss at Rs 460.

via Businessline

IIP at 6 year low

Lacklustre performance by the manufacturing sector pulled down the growth in Index for Industrial Production (IIP) to a six-year low of three per cent in March 2008 as against 14.8 per cent in March 2007.

However, for fiscal 2007-08, the IIP registered a modest growth rate of 8.1 per cent as against 11.6 per cent in fiscal 2006-07.

Growth in the manufacturing sector, which carries 79.3 per cent weight in the IIP, dipped to a meagre 2.9 per cent in March 2008 as compared with 16 per cent in March last year, while for the full year the sector grew by 8.6 per cent as against 12.5 per cent in 2008-07.

The growth rates have fallen also for electricity (3.7 per cent in March 2008 as against 7.9 per cent in March 2007) and mining (3.8 per cent versus 8 per cent). However, for fiscal 2007-08, the mining sector has been able to post a growth of five per cent, only marginally lower compared with 5.4 per cent in 2006-07.
Capital goods shine

The only silver lining in the overall dull scenario is the 8.6 per cent growth in capital goods production in March 2008. Although this is lower than the 18.1 per cent growth registered in the same month last year, it is still indicative of continuing investment activity taking place in the economy. The recently ended fiscal has also seen an overall growth rate of 16.5 per cent in capital goods against the 18.2 per cent during 2006-07.
Consumer goods slump

On the other hand, the consumer goods sectors are clearly in a beleaguered state. High interest rates have led to growth rates plummeting from 3.8 per cent to -2.1 per cent for consumer durables and from 20.2 per cent to 0.6 per cent in the case of consumer non-durables in March 2008. During 2007-08 as a whole, the growth rate for consumer durables stood at -1 per cent (against 9.2 per cent in 2006-07) while amounting to 8.1 per cent for consumer non-durables (10.4 per cent).
Sharp dip

The basic and intermediate goods sectors have also recorded sharp deceleration during March, growing by 3.1 per cent and 3.5 per cent respectively as against their corresponding March 2007 levels of 11.9 per cent and 15.3 per cent respectively.

During 2007-08, the growth rate for basic goods was estimated at 6.9 per cent (10.3 per cent in 2006-07) and 8.7 per cent (12 per cent) in the case of intermediate goods.

Among individual industries, the ones that have taken a real beating during March are metal products and parts (-25.8 per cent growth), wood and wood products (-5.8 per cent), textile products (-5.5 per cent), cotton textiles (-1.8 per cent) and transport equipment and parts (-0.1 per cent).

The individual sectors that fared well include beverages, tobacco and related products (11 per cent), wool, silk and man-made fibres (9.7 per cent), jute and other vegetable fibres (62.7 per cent), leather and fur products (12.7 per cent) and other manufacturing industries (24.9 per cent).

A mixed end for bullion metals

Gold prices end lower as oil retreats for first time in seven days

Precious metals ended mixed on Monday, 12 May, 2008. Gold prices fell but silver prices ended higher. Oil prices retreating for the first time in seven days and the dollar strengthening up partly against its rivals were the main reason behind gold’s low close.

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. Dollar weakness typically benefits dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

Comex Gold for June delivery fell $0.90 (0.1%) to close at $884.9 ounce on the New York Mercantile Exchange. Earlier, it touched a high of $888.8. Last 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 32 cents (1.8%) to $17.23 an ounce. Silver has gained 14.8% 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 Monday, the dollar rose against some of its currency rivals in the aftermath of a weekend Wall Street Journal report that U.S. officials are attempting to put a floor under the greenback.

In the crude market, crude-oil futures fell, retreating after their record-breaking run in which they rallied more than 8% last week. Crude for June delivery closed down $1.73 at $124.23 a barrel in New York. Crude oil declined amid signs that rising prices may curb demand in emerging markets.

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 71 (0.6%) at Rs 11,961 per 10 grams. Prices rose to a high of Rs 12,010 per 10 grams and fell to a low of Rs 11,825 per 10 grams during the day’s trading.

At the MCX, silver prices for July delivery closed Rs 567 (2.5%) higher at Rs 23,467/Kg. Prices opened at Rs 23,000/kg and rose to a high of Rs 23,669/Kg during the day’s trading.

Crude retreats for first time in seven days

Crude prices fall by more than a dollar after rising more than 8% last week

For the first time in seven days, crude-oil futures fell today, Monday, 12 May, 2008. Prices fell amid signs that rising prices may curb demand in emerging markets. It might be noted that crude prices touched a new high on all the individual days of last week that ended on Friday, 9 May. 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 today closed at $124.23/barrel (lower by $1.73/barrel or 1.4%) on the New York Mercantile Exchange. Price touched a high of $126.4 earlier during the day. In the past six sessions, crude prices had gone up by almost $13.5 (11.7%).

Last week, crude prices ended higher by 8.8%. For the year, crude is up by 27.2% till date.

Rising energy demand in China and India has contributed to a doubling in oil's price the past year. But recent reports showed that China's oil imports declined in April as crude costs prompted refiners to cut demand. Also, India's industrial production grew at the slowest pace since 2002. These factors hinted that higher crude prices might deter demand further in the coming months.

On the currency markets on Monday, the dollar rose against some of its currency rivals in the aftermath of a weekend Wall Street Journal report that U.S. officials are attempting to put a floor under the greenback. The U.S. dollar index fell to 72.950, down from 73.058 earlier last week.

Brent crude oil for June settlement today fell $2.5 (2%) to $122.91 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.

No emergency meeting for OPEC

Natural gas in New York dropped amid speculation inventories will increase as a major pipeline in the Gulf of Mexico resumes output following repairs and after crude oil fell from a record. Natural gas for June delivery slid 23.6 cents (2.1%) to settle at $11.301 per million British thermal units. Futures have gained 51% so far this year.

Against this backdrop, June reformulated gasoline closed down 4 cents at $3.16 a gallon and June heating oil shed 8 cents to end at $3.56 a gallon.

EIA reported last 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.

Today, it was reported that United Arab Emirates energy minister Mohammed al-Hamli said that OPEC has no plans for an emergency meeting ahead of its next scheduled gathering in September. Many were speculating about an OPEC emergency meeting due to crude’s sudden surge.

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 5,250/barrel, higher by Rs 11 (0.2%) against previous day’s close. Natural gas for July delivery closed at Rs 480.4/mmbtu, lower by Rs 2.1/mmbtu (0.4%).

IPO market shows signs of recovering

MUMBAI: A fairly reliable indicator of where the market could be headed in the short term is the activity in the market for initial public offers. While the stock market looks poised to slip into another downtrend, news from the primary market is encouraging, if registrar and transfer agents (RTAs) are to be believed.

According to them, the market for public issues is beginning to stir from its near-comatose state it had sunk into about a couple of months back. Registrars say that over the past one week, they have begun signing agreements with companies that are willing to go public.

“I think we’re seeing a reversal of trend as far as the IPO market is concerned. Of late, we’ve begun getting calls from promoters who want to float their offerings in two-three months,” said Bigshare Services’ vice-president Subhash Dhingreja, adding, “we have bagged about seven mandates over the past few days and at this rate, we are confident of signing at least 40 mandates by the end of July,” Mr Dhingreja added.

Investors developed cold feet for public issues in the wake of the 3,000-point crash in January. While investors subscribed to a few smaller issues in February, big-ticket issues like Emaar MGF and Wockhardt had to be called off after poor response.

“The general expectation is that primary market will turn around by June-end or July,” Intime Spectrum Registry’s vice-president, IPO, Haresh Hinduja. “We are not worried about May or June, as these are traditionally not great months for public issues.

If the bourses stabilise by mid-June and one quality issue reaches investors, the primary market will lift up in due course,” Mr Hinduja said. Intime Spectrum has accepted about 5 mandates while Karvy has bagged about 12 mandates over the past few days.\

If all issues hit the market at and around the mid-months of the year, there could be a severe bunching of IPOs initially, primary market experts say. The big three RTAs — Karvy, Intime Spectrum and Bigshare — alone have an IPO backlog (companies who have received approvals from Sebi) of about 150 highly-probable issues.

Several promoters are also under pressure to launch their issues as the three-month waiting period (post receiving Sebi approvals) is coming to end for most of them.

“We are not seeing too many mandates (in India); but investors in other markets like Hong Kong and Japan are regaining their stomach for IPO,” said an official at a US-based investment banking firm, who did not wished to be quoted.

According to him, the biggest stumbling block is the greed of promoters.

“In current markets, promoters will have to give 20 to 30% discounts to get their issues sufficiently subscribed. But they (promoters) are not willing to do that even now,” the I-banker said.

“What we now need is a quality issue with right valuation and a strong listing to pep the IPO market up. PSUs (that have IPO plans) could provide the much needed stimulus,” he added.

Dead Presidents! - India Equity Research

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