Weekly Wrap - Sep 5 2008
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Friday, September 05, 2008
BSE Bulk Deals to Watch - Sep 5 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
5/9/2008 506074 ARSHIYA INTL ARCHANA AJAY MITTAL B 310656 165.00
5/9/2008 506074 ARSHIYA INTL CARLSON FUND EQ ASIAN SMALL CAP B 500000 165.00
5/9/2008 506074 ARSHIYA INTL SWISS FINANCE CORPORATION MAURITIUS LTD S 392592 165.00
5/9/2008 530355 ASIAN OILFIE DECENT FIN SER P LTD S 100000 121.00
5/9/2008 519532 ASIAN TEA EX ENCA FINLEASE LTD. S 50000 53.60
5/9/2008 533016 AUSTRAL COKE EUREKA STOCK AND SHARE BROKING SERVICES LIMITED B 158201 212.43
5/9/2008 533016 AUSTRAL COKE OPG SECURITIES PVT LTD B 1122513 213.00
5/9/2008 533016 AUSTRAL COKE M D KOTECHA B 171208 205.04
5/9/2008 533016 AUSTRAL COKE EUREKA STOCK AND SHARE BROKING SERVICES LIMITED S 158201 212.57
5/9/2008 533016 AUSTRAL COKE OPG SECURITIES PVT LTD S 1122513 213.13
5/9/2008 533016 AUSTRAL COKE M D KOTECHA S 171208 200.80
5/9/2008 505506 AXON INFOTEC RAHUL DOSHI S 4470 22.04
5/9/2008 590059 BIHAR TUBES MUKESH JAIN B 35756 200.98
5/9/2008 517973 DMC INTER J.A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 21248 8.00
5/9/2008 517973 DMC INTER J.A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD S 21248 8.09
5/9/2008 531367 DOLLEX INDUT IMMORTAL FINANCIAL SERV P LTD B 65000 15.46
5/9/2008 531367 DOLLEX INDUT YUSUF KHAN S 65000 15.44
5/9/2008 532751 EASUNREYRL HERITAGE ASSET MGT INC AC INDIA EMERGING OPP FUND LTD B 121000 104.25
5/9/2008 513059 G.S. AUTO VIJAY KUMAR GOYAL B 30418 78.84
5/9/2008 513059 G.S. AUTO SPJSTOCK S 27702 78.00
5/9/2008 531439 GOLDSTON TEC MASUMI OVERSEAS PVT LTD S 150000 114.78
5/9/2008 532326 INTENS TECH CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD S 178797 17.82
5/9/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD B 438084 33.12
5/9/2008 531602 KOFF BR PICT HITESH SHASHIKANT ZAVERI B 59518 33.69
5/9/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 401210 32.44
5/9/2008 531602 KOFF BR PICT HITESH SHASHIKANT ZAVERI S 54794 33.10
5/9/2008 533015 NUTEK INDIA OPG SECURITIES PVT LTD B 311925 188.99
5/9/2008 533015 NUTEK INDIA OPG SECURITIES PVT LTD S 311925 189.22
5/9/2008 517195 ORG INFORMAT DEUTSCHE BANK AG LONDON GDR AC S 90000 29.47
5/9/2008 524820 PANAM PETROC SUDHIR JAIN S 55760 132.65
5/9/2008 532886 SEL MANUF MBL AND COMPANY LIMITED B 104753 261.35
5/9/2008 532886 SEL MANUF HARDIK M MITHANI B 202406 263.63
5/9/2008 532886 SEL MANUF MARWADI SHARES AND FINANCE LIMITED B 78797 262.41
5/9/2008 532886 SEL MANUF OPG SECURITIES PVT LTD B 257412 256.10
5/9/2008 532886 SEL MANUF SPJSTOCK B 435716 261.84
5/9/2008 532886 SEL MANUF B K SHAH CO B 208049 257.92
5/9/2008 532886 SEL MANUF MBL AND COMPANY LIMITED S 104753 262.08
5/9/2008 532886 SEL MANUF HARDIK M MITHANI S 202406 258.70
5/9/2008 532886 SEL MANUF MARWADI SHARES AND FINANCE LIMITED S 78797 262.45
5/9/2008 532886 SEL MANUF OPG SECURITIES PVT LTD S 257412 256.07
5/9/2008 532886 SEL MANUF SPJSTOCK S 435716 262.43
5/9/2008 532886 SEL MANUF B K SHAH CO S 201811 258.04
5/9/2008 532886 SEL MANUF NIRMAL NARENDRA KOTECHA S 76500 265.64
5/9/2008 532765 USHER AGRO MANHARLAL NAROTTAMDAS SHAH B 160753 137.92
5/9/2008 532765 USHER AGRO MANHARLAL NAROTTAMDAS SHAH S 160753 142.28
5/9/2008 530595 VICTORY PROJ YUVAK SHARE TRADING PVT LTD S 46956 26.32
5/9/2008 532360 VINTAGE CARD MANSUKH SECURITIES AND FINANCE LTD B 4542 113.48
5/9/2008 532360 VINTAGE CARD PRINCE GUPTA B 5083 113.79
5/9/2008 532360 VINTAGE CARD MANSUKH SECURITIES AND FINANCE LTD S 3233 113.77
5/9/2008 532360 VINTAGE CARD PRINCE GUPTA S 5083 114.06
MidcapMania Multibaggers - Gremach Infrastructure Equipments
Investors can take this as Buy Call. We can see multifold returns in this counter. GIEPL’s foray into oil rigs holds immense potential.
CMP: 81
Year High: 504
Year Low: 72
PE: 3.2
EPS: 24.43 (March 08)
Expected EPS: 30 (FY 09)
Sales: 102.36 Crores (June 08)
Equity MCAP: 127.76
Return on average equity: 35%
Debt/equity: 0.6
Net Operating Income per share: Rs 135 (March 07)… amazing
Some Key factors that are favoring gremach to become a money machine:
Drilling rigs - Addition of four onshore drilling rigs with plans to add 36 more in three-four years.
Coal Mines & Equiment Rentals - Acquisition of controlling stake in coal mines in Mozambique and the booming market for equipment rentals suggest good earnings prospects. There is a global shortage and crisis of hard coking coal and this will add huge value to the profitability of the Company.
Demand-supply mismatch - A demand-supply mismatches resulting in rising oil rig rentals. Rising rentals and better utilization levels have shrunk the average payback period for oil rigs.
NEPL - The increasing number of onshore blocks in each and every phase of the New Exploration License Program (NEPL) points to strong demand prospects. Drilling costs account for 20-25 per cent of the cost of developing an oil well and are showing an increasing trend in the earnings of company.
Great factor to consider:
MOU - Gremach has signed a MOU (memorandum of understanding) with Baoji Oilfield Machinery (BOMCO), subsidiary of China National Petroleum Corp for the delivery of 40 rigs, which includes 36 onshore and four offshore rigs.
Infra-Equipment business - Rose exponentially! The rental business of infra equipment has risen exponentially on the back of firm demand.
Entering into Coal Business - Gremach has taken a 75 per cent controlling stake in 11 coal mines in Mozambique. This region falls in the Karoo basin, which is recognized as a prime hard coking coal area in Africa. Gremach has incorporated a Singapore based SPV named Petrogrema Energy Pte Ltd. Gremach shall be making an investment of up to USD One Billion considering the vast global market potential in oil drilling business (subject to requisite RBI approval). This business proposal is considered highly profitable, with projected IRR 35% in the light of huge market demand for on shore and off shore drilling rigs considering unprecedented rise in crude prices. Infact, rig rental day rates for Off-Shore Rigs have risen by 13%, averaging to around $ 3 to 5 lacs per day. In the case of on shore rigs the payback period is estimated at 3 years. Several reputed Banks and other financial institutions have evinced keen interest to fund the above business Proposal / Acquisition.
The Financial Data - Impressive! Net Sales of gremach have grown from 347.38 million in quarter June,07 to 1023.62 million in quarter June, 08. Net profit has risen from 40.55 million in quarter June,07 to 121.31 million in quarter June,08. EPS for the same period has jumped from Rs. 2.66 to Rs. 7.97 in the current quarter. Sequentially, the EPS has grown from Rs. 6.16 in quarter March, 08 to Rs. 7.97 in quarter June,08. Net Profit margin has also gone up both sequentially as well as quarter on quarter.
Year High: Rs 504
Current CMP: 86
See its Client List…….. Very impressive
Larsen and Toubro Ltd.
VRCL Infrastructure & Projects Ltd
Gammon
JMC Projects Ltd.
Punj Lyod
LG E & CD – NCC JV
ACC Ltd.
Reliance Eng. Assoc. Pvt.
Madhucon Projects
Nagarjuna Constructions Ltd
Hindustan Cons. Co. Ltd.
Simplex Infrastructure Ltd.
Grasim
UP State Bridge Corp. Ltd.
IRCON International Ltd. (Govt.)
Afcons
The most esteemed infra players are the clients of Gremach. Really impressive clientele list.
Shareholding pattern : Good
A. Promoters: 55.68%
B. FII/MF/Banks: 16.36%
C. Total Public (including B): 44.32%
Risks: Delay in delivery of rigs or drilling projects. Downfall in rigs rental.
Conclusion: This counter can be bought for long term for multifold returns.
By: Uttam Saraf
Disclaimer: DP is not responsible for recommendations posted on this site
Sensex down 415 pts, closes at 4,352.30
Markets saw the biggest fall in nearly two weeks with the benchmark Sensex dropping over 415 points on selling by funds in heavyweight stocks, particularly in refinery, bank and metal segments, on renewed concerns of sluggish global economic growth.
The barometer, which was down by over 150 points in the previous day's trading, today declined sharply by 415.27 points to 14,483.83
The previous biggest loss for the 30-share index was on August 21 when it lost 435 points.
The wide-based National Stock Exchange index Nifty also closed lower by 95.45 points at 4,352.30.
In global markets, the S&P 500 yesterday dropped 3 per cent after the number of people staying on jobless rolls rose to the highest since November 2003.
Marketmen said fears of sluggish growth in US economy hit the software exporting companies like Infosys Technologies. IT sector index closed down by 143.96 points at 3,941.74.
Infosys, country's second-largest software exporter, fell 4.26 percent, the most in three weeks. Wipro, another IT major, dropped 4.8 percent. Satyam Computers also declined by 3.8 percent and Aptech 5.8 percent.
Indian software companies get more than half their sales from the US markets.
NSE Bulk Deals to Watch - Sep 5 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-SEP-2008,ALEMBICLTD,Alembic Limited,RELIANCE CAPITAL TRUSTEE CO. LTD. A/C RELIANCE GROWTH FUND,BUY,2018603,42.00,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,BUY,311463,209.08,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,199558,208.81,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,CHOKHANI SECURITIES LTD,BUY,156044,207.88,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,DINESH MUNJAL,BUY,221208,206.36,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,166822,212.20,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,344419,212.99,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,MANIPUT INVESTMENTS PVT LTD,BUY,198614,213.93,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,NIRMAL N KOTECHA,BUY,158946,204.68,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,NISSAR BROTHERS,BUY,170230,209.56,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,R HEMA KUMARI,BUY,168000,215.27,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,R.M. SHARE TRADING PVT LTD,BUY,326232,210.34,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,TRANSGLOBAL SECURITIES LTD.,BUY,279519,212.08,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,YES INVESTMENTS VISHAL KISHORE BHATIA,BUY,155000,205.52,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,YUVAK SHARE TRADING PVT LTD,BUY,302555,208.36,-
05-SEP-2008,GMRFER,GMR Ferro Alloys & Indust,WALLFORT SHARES & STOCK BROKERS LTD,BUY,100000,63.00,-
05-SEP-2008,IFBIND,IFB Industries Ltd.,WALLFORT SHARES & STOCK BROKERS LTD,BUY,115000,37.50,-
05-SEP-2008,MANALU,Man Aluminium Limited,NIKHIL RAMESHCHANDRA MANSUKHANI ,BUY,26422,32.29,-
05-SEP-2008,NUTEK,Nu Tek India Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,96632,195.31,-
05-SEP-2008,NUTEK,Nu Tek India Limited,HEMENDRABAHI RIGHAVCHAND SHAH,BUY,100000,179.99,-
05-SEP-2008,NUTEK,Nu Tek India Limited,TRANSGLOBAL SECURITIES LTD.,BUY,151059,193.12,-
05-SEP-2008,NUTEK,Nu Tek India Limited,YOKE SECURITIES LIMITED,BUY,101031,194.95,-
05-SEP-2008,NUTEK,Nu Tek India Limited,YUVAK SHARE TRADING PVT LTD,BUY,93333,185.25,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,BUY,247130,258.99,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,HARDIK M MITHANI,BUY,400401,257.40,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,KOTECHA NIRMAL NARENDRA,BUY,3951,260.64,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,MARWADI SHARES AND FINANCE LIMITED,BUY,89115,261.89,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,MBL & COMPANY LTD.,BUY,131624,260.09,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,URJA INVESTMENT PVT. LTD.,BUY,114783,261.08,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,YUVAK SHARE TRADING PVT LTD,BUY,105194,257.40,-
05-SEP-2008,SICAGEN,Sicagen India Limited,WISDOM ADVISORS PRIVATE LIMITE,BUY,3116310,12.95,-
05-SEP-2008,SINTEX,Sintex Industries Ltd.,RELIANCE MUTUAL FUND,BUY,1352000,311.00,-
05-SEP-2008,VINCARDS,Vintage Cards & Creations,KAMAL KUMAR KABRA,BUY,4000,114.10,-
05-SEP-2008,VINCARDS,Vintage Cards & Creations,MANSUKH SECURITIES & FINANCE LTD,BUY,5006,114.18,-
05-SEP-2008,VINCARDS,Vintage Cards & Creations,N RAVI KUMAR,BUY,3167,115.04,-
05-SEP-2008,VINCARDS,Vintage Cards & Creations,PASHUPATI CAPITAL SERVICES PVT. LTD.,BUY,3509,113.96,-
05-SEP-2008,VINCARDS,Vintage Cards & Creations,SHREE RIDDHI SIDDHI INVESTMENTS,BUY,3700,114.70,-
05-SEP-2008,VINCARDS,Vintage Cards & Creations,VINOD KUMAR AGARWAL,BUY,4000,114.56,-
05-SEP-2008,ALEMBICLTD,Alembic Limited,MERRILL LYNCH INTERNATIONAL,SELL,2045929,42.00,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,SELL,311463,209.29,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,199558,208.70,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,CHOKHANI SECURITIES LTD,SELL,156044,207.69,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,DINESH MUNJAL,SELL,221208,206.21,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,166822,212.54,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,344419,213.05,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,MANIPUT INVESTMENTS PVT LTD,SELL,198614,214.12,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,NIRMAL N KOTECHA,SELL,163946,200.80,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,NISSAR BROTHERS,SELL,170230,209.46,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,R HEMA KUMARI,SELL,168000,210.15,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,R.M. SHARE TRADING PVT LTD,SELL,326232,210.92,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,TRANSGLOBAL SECURITIES LTD.,SELL,279519,212.81,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,YES INVESTMENTS VISHAL KISHORE BHATIA,SELL,155000,211.22,-
05-SEP-2008,AUSTRAL,Austral Coke & Projects L,YUVAK SHARE TRADING PVT LTD,SELL,303156,208.65,-
05-SEP-2008,GMRFER,GMR Ferro Alloys & Indust,WALLFORT FINANCIAL SERVICES LTD,SELL,100000,63.00,-
05-SEP-2008,GOLDTECH,Goldstone Tech Ltd.,MASUMI OVERSEAS PVT LTD,SELL,100000,114.62,-
05-SEP-2008,IFBIND,IFB Industries Ltd.,WALLFORT FINANCIAL SERVICES LTD,SELL,115000,37.50,-
05-SEP-2008,NUTEK,Nu Tek India Limited,ADITYA S SHAH,SELL,140211,180.86,-
05-SEP-2008,NUTEK,Nu Tek India Limited,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,96632,197.22,-
05-SEP-2008,NUTEK,Nu Tek India Limited,HEMENDRABAHI RIGHAVCHAND SHAH,SELL,14560,181.00,-
05-SEP-2008,NUTEK,Nu Tek India Limited,TRANSGLOBAL SECURITIES LTD.,SELL,150549,193.49,-
05-SEP-2008,NUTEK,Nu Tek India Limited,YOKE SECURITIES LIMITED,SELL,101031,195.32,-
05-SEP-2008,NUTEK,Nu Tek India Limited,YUVAK SHARE TRADING PVT LTD,SELL,92995,185.55,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,B K SHAH CO KETAN BHAILAL SHAH,SELL,247125,258.19,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,HARDIK M MITHANI,SELL,392901,263.91,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,KOTECHA NIRMAL NARENDRA,SELL,78951,260.77,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,MARWADI SHARES AND FINANCE LIMITED,SELL,89113,261.45,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,MBL & COMPANY LTD.,SELL,131624,259.65,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,URJA INVESTMENT PVT. LTD.,SELL,111253,260.19,-
05-SEP-2008,SELMCL,SEL Manufacturing Company,YUVAK SHARE TRADING PVT LTD,SELL,105176,257.50,-
05-SEP-2008,SICAGEN,Sicagen India Limited,IDFC INFRASTRUCTURE FUND 2,SELL,3116310,12.95,-
05-SEP-2008,SINTEX,Sintex Industries Ltd.,CAPITAL RESEARCH & MANAGEMENT COMPANY A/C NEW WORLD FUND INC,SELL,1364694,311.02,-
05-SEP-2008,VINCARDS,Vintage Cards & Creations,KAMAL KUMAR KABRA,SELL,1000,115.00,-
05-SEP-2008,VINCARDS,Vintage Cards & Creations,MANSUKH SECURITIES & FINANCE LTD,SELL,5006,114.14,-
05-SEP-2008,VINCARDS,Vintage Cards & Creations,N RAVI KUMAR,SELL,3287,114.80,-
05-SEP-2008,VINCARDS,Vintage Cards & Creations,PASHUPATI CAPITAL SERVICES PVT. LTD.,SELL,3509,114.24,-
05-SEP-2008,VINCARDS,Vintage Cards & Creations,SHREE RIDDHI SIDDHI INVESTMENTS,SELL,731,113.68,-
Post Session Commentary - Sep 5 2008
The Indian market slipped further for the second straight day to close deeper into red. Market shed more than 2% on growing worries about health of global economy as jobless claims increased in the US along with investors’ concern over further development in Indo-US nuclear deal in the NSG meet in Vienna. Weekly jobless claims for US climbed 15,000 to 444,000. Investors also kept an eye on the progress of the Indo-US nuclear deal in the NSG two days meet in Vienna. Domestic markets opened on weak note on sharp negative cues from the global markets. Further, market continued to remain under pressure though struggled to find support. Fresh bouts of selling again crushed markets to end with sharp losses. NSE Nifty ended below 4,300 mark and BSE Sensex closed below 14,500 level. From the sectoral front, Reality index was worst performer as ended with a deep cut of more than 4%.Apart from that, Metal, Bank, Capital Goods, Oil & Gas and IT stocks also took huge beating on the bourses. However, FMCG stocks were ended with margin gain. The market breadth was negative as 1011 stocks closed in green while 1626 stocks were ended in red and 91 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 415.27 points at 14,483.83 and NSE Nifty ended down by 95.45 points at 4,352.30. The BSE Mid Caps and Small Caps ended with losses of 75.45 points and 69.15 points at 5,753.72 and 6,905.22. The BSE Sensex touched intraday high of 14,601.39 and intraday low of 14,438.59.
Losers from the BSE are Ranbaxy Lab (8.77%), ONGC Ltd (2.97%), HDFC (5.78%), DLF Ltd (5.41%), JP Associates (5.23%), Wipro Ltd (4.88%), ICICI Bank Ltd (4.33%), HDFC Bank Ltd (4.33%) and Infosys Tech (4.26%).
The BSE Metal index plunged 397.13 points to close at 11,785.77. Losers are Gujarat NRE Coke (5.41%), Jindal Steel (5.13%), NMDC Ltd (4.82%), Sterlite Indus (4.13%), Tata Steel (3.64%) and Steel Authority (2.92%).
The BSE Bank index ended down by 261.88 points at 7,172.85. As Axis Bank (6.58%), Kotak Bank (5.45%), HDFC Bank Ltd (4.33%), ICICI Bank Ltd (4.33%), Bank of India (3.26%) and Punjab National Bank (3.05%) closed in negative territory.
The BSE Reality index dropped 216.46 points to close at 4,979.26. As Akruti City (6.51%), DLF Ltd (5.41%), Unitech Ltd (4.78%), Penland Ltd (3.92%), Mahindra Life (3.84%) and Indiabull Real (3.70%) ended in negative territory.
The BSE Capital Goods index lost 207.58 points to close at 11,980.60. Losers are Crompton Greaves (4.44%), Reliance industrial Infra (2.98%), Punj Lloyd (2.68%), Elecon Eng C (2.14%), Lakshmi Ma W (2.13%) and L&T Ltd (2.08%)
The BSE Oil & Gas index closed lower by 191.97 points at 9,652.68. Major losers are Essar Oil Ltd (7.18%), Reliance (3.40%), Cairn India (3.36%), Reliance Natural Resources (1.37%) and Gail India (1.02%).
The BSE IT index closed down by 143.96 points at 3,941.74. Major losers are Aptech Ltd (5.89%), Wipro Ltd (4.88%), Moser Bayer (4.39%), Rolta India (4.28%), Infosys Tech (4.26%) and Satyam Computer (3.85%).
Political concerns, weak global equities may weigh on domestic bourses
The market on Monday, 8 September 2008, will react to the outcome of the two-day meeting of the Nuclear Suppliers Group (NSG) in Vienna on the Indo-US nuclear deal. The two-day NSG meet ends on Friday, 5 September 2008. The market will also react to a crucial US job data due on Friday, 5 September 2008, after Indian markets closed. A sharp slide in global crude oil prices and reports of a satisfactory distribution of monsoon bodes well for equities. But a latest controversy on the Indo-US nuclear deal may cause political worries which may weigh on the bourses in the near term.
A softening of inflation for a second consecutive week has raised hopes that we may in the last lap of the interest rate hike cycle. Annual inflation rose 12.34% in the year through 23 August 2008, lower than previous week’s 12.40% rise, data released by the government after trading hours on Thursday, 4 September 2008 showed. Food prices for staples like lentils and vegetables eased while fuel prices remained flat, the data showed.
Inflation, however, remains far above central bank’s target level of 7% towards the year ending March 2009. According to domestic brokerage Edelweiss Securities it is too early to call a softening in inflation this month as a trend because manufactured products inflation is still on the rise.
The sharp fall in oil prices from a record high of $147.27 a barrel struck on 11 July 2008 augurs well for the global economy. Oil settled at $107.89 a barrel on Thursday, 4 September 2008, the lowest level in five months. The sharp fall in oil prices will help reduce inflation worries.
A key near term trigger for oil price is a meeting of the Organization of Petroleum Exporting Countries (Opec) in Vienna on Tuesday, 9 September 2008. The cartel will decide whether to cut production at today’s elevated levels or leave it unchanged. Opec’s 13 members account for about 40% of the world’s oil production
However, political worries may weigh on the domestic bourses with a latest controversy sparked by the disclosure of correspondence between the Bush administration and US Congress that the Indo-US nuclear pact would be off if India conducted a nuclear test. The opposition BJP on Thursday, 4 September 2008, accused Prime Minister Manmohan Singh of misleading Parliament and the country on the nuclear deal issue and demanded the resignation of the Manmohan Singh government.
Senior BJP leader Yashwant Sinha said, in view of the gross breach of privilege of both the Houses of Parliament an immediate session of Parliament should be convened within the shortest possible time to enable BJP to move a privilege motion against the Prime Minister if the UPA did not quit.
The 45-members nuclear suppliers group (NSG) is currently debating on whether to allow a waiver to India for nuclear commerce, a decision that can take the Indo-US nuclear deal forward.
Weak global markets may continue to weigh on domestic bourses. Stocks across the globe fell sharply, last week, on global economic growth worries. In Europe, investors fretted over European Central Bank projections that showed an increase in inflation forecasts and a cut in growth expectations compared with their last prognosis three months ago.
Wall Street suffered its worst decline in more than two months on Thursday, 4 September 2008, hurt by more signs of weakness in the labour market and the growth fears. Global stocks will react to the influential US non-farm payroll data due on Friday, 5 September 2008, for August 2008, which is expected to show the eighth consecutive decline, with 75,000 jobs lost in the month. Asian shares were sharply lower on Friday, 5 September 2008.
Back home, the delay in the withdrawal of the monsoon is expected to benefit crops in the current kharif as well as in the ensuing rabi season. The region-wise distribution of rains, was satisfactory for agriculture, till August 2008 end, reports suggest.
Equity mutual funds are sitting on large cash pile and the market may find support once mutual funds start deploying the idle cash.
Weak global stocks cast their shadow on domestic bourses
A sharp fall in oil price triggered a solid rally on the bourses at the initial part of the week ended Friday, 5 September 2008. The gains were, however, wiped out later by setback in global equities and on domestic political concerns. The market declined in three out of four trading sessions in the truncated week. The market was closed on Wednesday, 3 September 2008, on account of Ganesh Chaturthi.
Sliding oil prices calmed inflation concerns. Oil price declined sharply in response to less damage from Hurricane Gustav than the oil industry feared. Light, sweet crude for October 2008 delivery settled at $107.89 on Thursday, 4 September 2008, its lowest level in five months.
The 30-share BSE Sensex lost 80.70 points or 0.55% to 14,483.83 in the week. The S&P CNX Nifty lost 7.70 points or 0.17% to 4352.30.
Small-cap and mid-cap indices nudged slightly higher. The BSE Small-Cap index rose 13.58 points or 0.2% at 6,905.22. The BSE Mid-Cap index advanced 11.43 points or 0.2% to 5,753.72.
Foreign funds bought shares worth a net Rs 766.60 crore in three trading sessions from 1 September 2008 to 4 September 2008. Mutual funds bought shares worth a net Rs 159.30 crore during that period.
The market ended with small losses on Monday, 1 September 2008, staging a smart comeback from an intra-day fall. BSE Sensex lost 66.02 points or 0.45% at 14,498.51, recovering from an intra-day fall of 283.43 points.
A sharp fall in crude oil price helped the key benchmark indices register strong gains on Tuesday, 2 September 2008. The BSE 30-share Sensex jumped 551.35 points or 3.80% to 15,049.86. The S&P CNX Nifty was up 155.35 points or 3.57% to 4504.
Weak global cues pulled Sensex down 150.76 points or 1% to 14,899.10, on Thursday, 4 September 2008. The S&P CNX Nifty lost 56.25 points or 1.12% to 4447.75.
Intense selling in index pivotals pulled Sensex down 415.27 points or 2.79% to 14,483.83 on Friday, 5 September 2008. Weak global markets weighed on the domestic bourses for the second day in a row.
Bank shares witnessed choppy trade due to alternate bouts of buying and selling. BSE’s banking sector index Bankex jumped 163.16 points or 2.33% at 7,172.85 in the week.
Ranbaxy Laboratories, India’s biggest drug maker by sales, slumped amid volatile trade. The stock plunged 13.16% to Rs 450.25 on Friday, 5 September 2008, after Daiichi Sankyo's open offer to acquire an additional 20% in the company at Rs 737 a piece ended on Thursday, 4 September 2008.
Life Insurance of Corporation (LIC) and General Insurance Corporation (GIC) reportedly offered their entire holding in the open offer. LIC held 15.01% stake and GIC had 1.42% stake in Ranbaxy as on 30 June 2008.
India’s biggest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) lost 2.68% to Rs 2079.40 in the week. The family memorandum of understanding between Anil Ambani and Mukesh Ambani based on which the Reliance empire was split continues to remain the main point of argument in the ongoing case between Reliance Industries (RIL) and Reliance Natural Resources (RNRL) over sharing of natural gas from the KG basin.
Tata Motors, India’s biggest commercial vehicle maker by market share, lost 4.6% to Rs 419.95, amid ongoing controversy over acquisition of farmers’ land for the company’s small-car project at Singur in West Bengal. Meanwhile, the company’s board on Tuesday, 2 September 2008, approved terms of the two simultaneous and unlinked rights issues to raise about Rs 4,200 crore.
ONGC, India’s biggest state-run oil exploration firm by market capitalization, jumped 4.6% to Rs 1070.75 in the week as a sharp fall in oil price raised hopes of lower oil subsidy burden for the company.
Airline shares surged after state-run oil firms slashed air turbine fuel prices by 16% with effect from Sunday, 31 August 2008, midnight, on softening international prices. Domestic airlines have ruled out cutting fares for now.
Shares of oil marketing firms rose boosted by the sharp slide in oil prices. Lower crude oil prices will reduce under recoveries of oil firms on retail sale of petrol and diesel. Oil firms have to sell petrol and diesel at government mandated prices and they were been hit hard by a sharp surge in oil prices witnessed in recent months.
Iron ore miner Resurgere Mines & Minerals settled at Rs 524.35 on BSE on Monday, 1 September 2008, a 94.20% premium over initial public offer price of Rs 270. The stock debuted at Rs 272.05, a marginal premium of 0.75% over its issue price of Rs 270.
The Bombay Stock Exchange (BSE) on Monday, 1 September 2008, said trading timing at the exchange will change from 24 September 2008 till 8 October 2008, as VSAT services might get disrupted during this period due to heavy solar activity. Trading on BSE will start as usual at 9:55 IST and close at 16:15 IST. There will be no trading from 11:25 IST to 12:10 IST as there will be signal problems during this time, BSE said.
The opposition BJP on Thursday, 4 September 2008 accused Prime Minister Manmohan Singh of misleading Parliament and the country on the nuclear deal issue and demanded the resignation of the Manmohan Singh government. Senior BJP leader Yashwant Sinha said in view of the gross breach of privilege of both the Houses of Parliament, an immediate session of Parliament should be convened within the shortest possible time to enable BJP to move a privilege motion against the Prime Minister if the UPA did not quit.
The BJP made the demands in the wake of the disclosure of correspondence between the Bush administration and US Congress that the Indo-US nuclear pact would be off if India conducted a nuclear test.
The Nuclear Suppliers Group (NSG) is reportedly inching towards forging a consensus on clearing a waiver to India for nuclear commerce, a decision that can take the Indo-US nuclear deal forward. The United States said on Thursday, 4 September 2008, 45 nations were making headway towards agreement on lifting a ban on nuclear trade with India after Washington reworked a draft for the move to ease proliferation fears. The two-day meeting of NSG ends on Friday, 5 September 2008.
India’s annual inflation rose 12.34% in the year through 23 August 2008, lower than previous week’s 12.40% rise, data released by the government after trading hours on Thursday, 4 September 2008 showed. Food prices for staples like lentils and vegetables eased while fuel prices remained flat, the data showed. Inflation, however, remains far above central bank’s target level of 7% towards the year ending March 2009.
The government on Monday, 1 September 2008, appointed Finance Secretary Duvvuri Subbarao as Governor of the Reserve Bank of India (RBI) in place of Y.V. Reddy. Reddy completed his term on 5 September 2008.
Sensex sheds 415 points on global growth worries; Ranbaxy tanks
Intense selling in index pivotals ever since the opening bell led a sell-off on the bourses today. The BSE 30-share Sensex fell 415.27 points. Recovery from lower level in afternoon trade proved short-lived. Trading was choppy. Weak global markets weighed on the domestic bourses.
The market breadth was weak. Shares from realty and IT pack were the worst hit in today's slide. Index heavyweight Reliance Industries shed over 3%. Ranbaxy Laboratories tumbled close to 9%. However, shares of state-run oil marketing companies and aviation firms bucked the weak market trend.
Annual inflation rose 12.34% in the year through 23 August 2008, lower than previous week’s 12.40% rise, data released by the government after trading hours on Thursday, 4 September 2008 showed. Food prices for staples like lentils and vegetables eased while fuel prices remained flat, the data showed. Inflation, however, remains far above central bank’s target level of 7% towards the year ending March 2009.
The opposition BJP on Thursday, 4 September 2008 accused Prime Minister Manmohan Singh of misleading Parliament and the country on the nuclear deal issue and demanded the resignation of the Manmohan Singh government. Senior BJP leader Yashwant Sinha said in view of the gross breach of privilege of both the Houses of Parliament, an immediate session of Parliament should be convened within the shortest possible time to enable BJP to move a privilege motion against the Prime Minister if the UPA did not quit.
The BJP made the demands in the wake of the disclosure of correspondence between the Bush administration and US Congress that the Indo-US nuclear pact would be off if India conducted a nuclear test.
The Nuclear Suppliers Group (NSG) is reportedly inching towards forging a consensus on clearing a waiver to India for nuclear commerce, a decision that can take the Indo-US nuclear deal forward. The United States said on Thursday, 4 September 2008, 45 nations were making headway towards agreement on lifting a ban on nuclear trade with India after Washington reworked a draft for the move to ease proliferation fears. The two-day meeting of NSG ends today, 5 September 2008.
The BSE 30-share Sensex fell fell 415.27 points or 2.79% to 14,483.83. It opened 330.09 points lower at 14,569.01. At the day’s low of 14,438.59 hit in afternoon trade, the Sensex lost 460.51 points. At the day’s high of 14,601.39 hit in early afternoon trade, the Sensex fell 297.71 points.
The S&P CNX Nifty declined 95.45 points or 2.15%, to settle at 4352.30. Nifty September 2008 futures were at 4368, a premium of 15.70 over spot closing.
The BSE Sensex is down 5803.16 points or 28.60% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6722.94 points or 31.70% away from its all-time high of 21,206.77 struck on 10 January 2008.
The market breadth was weak on BSE with 1613 shares declining as compared to 1017 that advanced. 86 remained unchanged.
The BSE Mid-Cap index declined 1.29% to 5,753.72 and the BSE Small-Cap index fell 0.99% to 6,905.22. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 4790 crore as compared to Rs 5,485.53 crore yesterday, 4 September 2008. Turnover in NSE’s futures & options segment rose to Rs 46868.19 crore from Rs 46290.5 crore yesterday, 4 September 2008.
Among the 30-member Sensex pack, 27 declined while the rest gained.
India’s top drug maker by sales, Ranbaxy Laboratories tumbled 9.20% to Rs 448.15 on 15.29 lakh shares. It was the top loser from Sensex pack. The Japanese drug maker Daiichi Sankyo’s open offer to acquire an additional 20% stake at Rs 737 a share in the company ended yesterday, 4 September 2008.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) slumped 3.24% to Rs 2083 on 13.47 lakh shares. The stock moved in a range of Rs 2067.05 and Rs 2120 during the day.
Auto stocks rebounded from day’s low. India’s top truck maker by sales, Tata Motors lost 1.84% to Rs 420.90, off day’s low of Rs 417. A crucial meeting will be held in Kolkata today, 5 September 2008, between representatives of the West Bengal government and Trinamool Congress chief Mamata Banerjee to end the standoff over land acquisition for the company’s small car project at Singur.
Tata Motors Chairman Ratan Tata said on Thursday, the company will do everything it can to roll out its super-cheap Nano car as close to the planned October 2008 launch timeline as possible.
India's top small car maker by sales, Maruti Suzuki India was down 0.28% to Rs 682, off day’s low of Rs 654.20. Mahindra & Mahindra, the country's largest tractor manufacturer by sales shed 0.39% to Rs 584.05, off day’s low of Rs 570. The BSE Auto index skid by 1.43% to 3,983.05.
Frontline IT stocks were under selling pressure. Infosys (down 4.42% to Rs 1710.50), Wipro (down 4.37% to Rs 428.50), TCS (down 0.55% to Rs 839.50), and Satyam Computer Services (down 3.55% to Rs 417.50), edged lower. The BSE IT index lost 3.52% to 3,941.74
Telecom heavyweights declined. India’s largest listed cellular services provider by sales Bharti Airtel lost 3.10% to Rs 801. Reliance Communications, the country’s second largest listed cellular services provider by sales fell 1.20% to Rs 392.70
Real estate stocks declined. DLF (down 5.60% to Rs 493.50), Unitech (down 4.93% to Rs 157), Indiabulls Real Estate (down 3.06% to Rs 280.50), Parsvnath Developers (down 0.77% to Rs 122.50), and Akruti City (down 6.77% to Rs 897), slipped from the realty pack. The BSE Realty index slumped 4.17% to 4,979.26, and was the top loser among the sectoral indices on BSE.
Steel stocks declined on reports they have slashed prices by up to Rs 2,000 per tonne in the spot market with effect from 1 September 2008, in the wake of a slump in steel prices globally. Tata Steel (down 3.74% to Rs 560.55), JSW Steel (down 3.55% to Rs 705), Ispat Industries (down 1.02% to Rs 24.35), and Jindal Steel & Power (down 5.06% to Rs 1800.15), declined.
India’s top power equipment maker in terms of sales, Bharat Heavy Electricals declined 2.28% to Rs 1725 on reports the company would sign a pact on Saturday, 6 September 2008, with Heavy Engineering Corporation, Ranchi to set up a joint venture foundry forge company
Banking shares declined on fresh selling despite softening of inflation for a second week in a row. ICICI Bank (down 4.21% to Rs 688), State Bank of India (down 0.99% to Rs 1520), and HDFC Bank (down 4.43% to Rs 1246.20), slipped. The Bankex lost 3.52% at 7,172.85.
India’s second largest private sector power generation company by sales Tata Power Company was down 1.39% to Rs 1072.90. The company said on Thursday, 4 September 2008, it has acquired 11.4% stake in Australia’s Geodynamics for Rs 165 crore.
Jaiprakash Associates (down 5.46% to Rs 167.10), HDFC (down 5.98% to Rs 2276.05), edged lower from the Sensex pack.
India’s largest FMCG company by sales, Hindustan Unilever gained 1.62% to Rs 244.75 on 2.95 lakh shares. It was the top gainer from the Sensex pack. The stock recovered from the day’s low of Rs 236.
India’s largest oil exploration company by market capitalisation ONGC recovered from day’s low of Rs 1040.20. It closed with gain of 0.29% to Rs 1072. As per reports, the company's wholly owned overseas unit ONGC Videsh is in talks to acquire Canada's Tanganyika Oil Co for about $1.2-1.5 billion. Tanganyika is listed on the Stockholm bourse and has production and exploration assets in Egypt and Syria.
Reliance Industries topped the turnover chart on BSE with a turnover of Rs 281 crore followed by Reliance Capital (Rs 260.80 crore), Austral Coke & Projects (Rs 254.80 crore), State Bank of India (Rs 157 crore) and Reliance Infrastructure (Rs 133.35 crore), in that order.
Austral Coke & Projects topped volumes on BSE notching volumes of 1.21 crore shares followed by Reliance Natural Resources (96.75 lakh shares), IFCI (50.60 lakh shares), Chambal Fertilisers (45.80 lakh shares) and Reliance Petroleum (43.90 lakh shares), in that order.
Shares of PSU OMCs advanced on fresh buying. Hindustan Petroleum Corporation (up 5.17% to Rs 238.05), Bharat Petroleum Corporation (up 8.76% to Rs 358.25), and Indian Oil Corporation (up 1.80% to Rs 444.40), surged
Airline shares jumped. Deccan Aviation (up 3.30% to Rs 89.30), Jet Airways (up 2.89% to Rs 544.40), edged higher
Orbit Corporation rose 0.88% to Rs 307.80 after the Supreme Court on Thursday cleared a Maharashtra development control rule allowing realtors to enjoy floor space index of 3-7 times, allowing them to build more vertically.
Alembic spurted 6.08% to Rs 44.50 after 20.50 lakh shares, or 1.4% of the company's equity changed hands in a block deal on the NSE at Rs 42 each.
Aban Offshore surged 3.19% to Rs 2,285.70. On 1 September 2008, the company’s step-down overseas unit Venture Drilling AS won 18-month contract from Maersk Oil Angola at an operating day rate of 495,000 million.
US crude was down $1.51 to $106.38 a barrel, at the lowest level since 4 April 2008, on flagging US demand and the stronger dollar.
European markets, which opened after Indian markets, were subdued. Key benchmark indices in UK, Germany and France were down by between 1.06% and 1.34%.
Fears about economic growth and a 3% slump in US stocks on Thursday, 4 September 2008, sent Asian shares sprawling today, 5 September 2008. Key benchmark indices in Hong Kong, China, Japan, South Korea, Singapore and Taiwan were down by between 1.55% to 3.29%.
Wall Street suffered its steepest decline in more than two months on Thursday, 4 September 2008, after weekly government data showed an unexpected jump in the number of filings for jobless benefits, souring the mood before Friday's (5 September 2008)’s jobs report for August 2008, which is expected to show the eighth consecutive decline, with 75,000 jobs lost.
Daily Call - Sep 5 2008
Stocks are likely to open sharply lower in the morning as Indian markets react to a 300 point fall in the Dow in sync with the other Asian markets. There is another domestic issue as well. Though the inflation came in lower than the expected number of 12.44%, it was higher than the 12.01-12.10% range that was seen in the whisper numbers. As a good portion of the banking longs had happened based on this expectations, the stocks must now decline as hopes have been belied.
India made some progress at Vienna yesterday, which has improved the odds for a waiver, but a clean waiver is still anybody’s guess. My sense is that if you had heeded our hawkish take on the issue yesterday and accordingly bought puts, it may be time to cover them profitably. If you had shorted the futures, buy an out of the money call to protect your profits from turning in to losses should the markets reverse in the eventuality of the NSG clearance coming.
Oil Prices At Five Months Low, After Gustav New Storms In Limelight
Oil prices closed at their lowest level in five months Thursday as a lower-than-expected drop in U.S. gasoline supplies gave traders more reason to believe that a cooling economy is forcing Americans to drive less. However, potential supply interruptions should ensure that oil does not pull back too much. Light, sweet crude for October delivery fell $1.46 to settle at $107.89 a barrel on the New York Mercantile Exchange. It was the lowest settlement price for a front-month contract since April 4. MCX Crude Oil for October expiry closed the session at Rs 4824 per barrel. The contract also touched a low of Rs 4751 per barrel.
In its weekly inventory report, the Energy Department's EIA said U.S. gasoline stocks fell by 1 million barrels to 194.4 million barrels for the week ending Aug. 29. Tropical storm Hanna seems likely to hit the Atlantic coast of the US, missing the Gulf of Mexico, but likely worry is from Ike, which has already reached category 4-hurricane strength. It is still too early to say what course it will take, but there are risks of potential supply interruptions.
KEC International
Short-term investors can buy KEC International at current levels. The stock is just commencing a smart up-move after a protracted sideways move from the July trough at Rs 340. The sequence of higher troughs in the ensuing period reflects the underlying strength in the stock. KEC International has also closed firmly above the 50-day moving average line as well as the long-term down-trend line. Both these crossovers reflect a reversal in the bearish outlook currently prevailing in the stock.
The fact that the 10-day rate of change and the daily moving average convergence divergence oscillators have moved above the zero line indicate that the stock could be beginning the next phase of the uptrend that commenced in July. Investors can buy KEC International with a stop at Rs 395. We expect the stock to achieve the target of Rs 490 in the near-term.
Market may drift lower on weak global cues
Weakness in global markets may continue to weigh on the domestic bourses for a second day in a row today, 5 September 2008. However, the downside may be capped on data showing softening of inflation for a second straight week and on reports that the Nuclear Suppliers Group (NSG) was inching towards forging a consensus on clearing a waiver to India for nuclear commerce, a decision that can take the Indo-US nuclear deal forward.
Annual inflation rose 12.34% in the year through 23 August 2008, lower than previous week’s 12.40% rise, data released by the government after trading hours on Thursday, 4 September 2008 showed. Food prices for staples like lentils and vegetables eased while fuel prices remained flat, the data showed. Inflation, however, remains far above central bank’s target level of 7% towards the year ending March 2009.
The United States said on Thursday, 4 September 2008, 45 nations were making headway towards agreement on lifting a ban on nuclear trade with India after Washington reworked a draft for the move to ease proliferation fears. The two-day meeting of NSG ends today, 5 September 2008.
Fears about economic growth and a 3% slump in US stocks on Thursday, 4 September 2008, sent Asian shares sprawling on Friday, 5 September 2008 and investors sought safe-haven bonds and unwound currency carry trades, lifting the yen to a 13-month high versus the euro. Key benchmark indices in Hong Kong, China, Japan, South Korea, Singapore and Taiwan were down by between 0.95% to 2.61%.
Wall Street suffered its steepest decline in more than two months on Thursday, 4 September 2008, after weekly government data showed an unexpected jump in the number of filings for jobless benefits, souring the mood before Friday's (5 September 2008)’s jobs report for August 2008, which is expected to show the eighth consecutive decline, with 75,000 jobs lost.
Weak global cues had pulled Sensex down 150.76 points or 1% to 14,899.10, on Thursday, 4 September 2008. As per provisional data released by the stock exchanges, foreign funds sold shares worth a net Rs 603.28 crore on Thursdays. Domestic funds bought shares worth a net Rs 431.11 crore.
Morning Call - Sep 5 2008
Market Grape Wine :
In House:
Cash: Sell GESHIP below 367 targets 350 with S/L 373.
Cash: Sell REL INFRA below 1024 target 980 with S/l 1045.
Future: Sell RELCAP below 1375 target 1310 with S/L 1395.
Future: Sell RPL below 156.50 targets 148 with S/L 160.
Out House:
Markets at a support of 14646 & 14532 and resistance at 15151 & 15024 levels .
Markets to be very choppy and volatile keep strict stop loss .
Buy : RIL at dips
Buy : ITC at dips
Buy : Srei
Buy : HLL
Buy : Hdfc at dips
Buy : Mcleodrussel
Buy : SBIN at dips
Buy : JSW & Sail at dips
Dark Horse : HDFC , McLloyd , RIL , Core , HLL , & ITC
TGIF : Thank God Its Friday : Markets to be range bound buy low sell high call for the day with negative Bias .
Inflation eases slightly
The wholesale price index data released by the government on Thursday showed the inflation rate drop further to 12.34 percent for the week ended August 23 as compared to previous week’s 12.4 percent on August 16, amid the Finance Ministry's assertion that the rate of price rise declined to 6.9 percent in 30 essential commodities from 7.24 percent during the period under review.
"There is movement downward," said Commerce and Industry Minister Kamal Nath even as Prime Minister Manmohan Singh took a review of price and availability of food commodities at a meeting of Cabinet Committee on Prices (CCP).
However, the Reserve Bank of India (RBI) did not show any complacency on the price front and indicated that it would continue with required monetary policy to bring down inflation to 7 percent by the end of current fiscal.
The ease in inflation is being attributed to the fall in prices of primary articles, fruits and vegetables. While the slight increase in the cost of manufacturing goods remained a matter of concern for the government, the significant decline in fuel and power index came as a big pop up.
Inflation has almost tripled this year to reach its highest mark of 12.4 percent amid higher fuel and food prices, forcing the central bank to raise interest rates three times since June and making it harder for consumers to purchase cars, motorcycles and homes. Economic growth is still almost double the average pace since India's independence in 1947.
According to an estimate released by the World Bank, India may lose its position as the world's fastest-growing major economy after China this year, whereas Russia's economy may grow 7.1 percent in 2008, while China may increase 9.4 percent this year, the bank forecast in June.
Last week, first-quarter economic growth slowed to 7.9 percent, the weakest in three-and-a-half years, as successive interest rate hikes hit demand.
The growth figure for the three months to June was far below the 9.2 percent expansion recorded in the same quarter a year earlier.
20 Microns IPO Analysis
Promoted by Chandresh S Parikh and seven others, 20 Microns was incorporated in Gujarat in 1987 to manufacture white non-metallic minerals in India. The company is a leading manufacturer of micronized mineral products including micronised ground calcium carbonate, china and calcined clay, talc, dolomite, silica, mica and whiting (calcite and calcium carbonate), which finds application in the paints, plastics, rubber, ceramic, paper and other industries as functional fillers.
The mining resources and plants are strategically located in Rajasthan, Gujarat, and Tamil Nadu. With eight manufacturing facilities located in different strategic regions that are closer to its key markets, 20 Microns also has four mines of ground minerals, ensuring unhindered supply of raw materials at lower cost. The four mines comprise 72 hectors of mining area and permission has been sought for further 1,000 hectors of additional mining area.
With a turnover of 1,70,000 tonnes per annum, 20 Micron is a leader in white minerals including ultra-fine minerals ranging from 20 microns to 2 microns of particle size and is planning to introduce sub-micronized grades and nano-additives. Sub-microns and nano-additives are processed non-metallic minerals used as import substitute in various chemicals and polymers in paints, PVC pipes, paper, cement and ceramics. The company’s clients include Finolex Cables, Berger Paints, Asian Paints, Goodlass Nerolac Paints, ICI India and Pidilite Industries.
Higher value added technology intensive, import substitute product like sub microns will be introduced in existing capacities at Vadadla (Gujarat), Bhuj (Gujarat) Tirunelveli (Tamil Nadu) and Udaipur (Rajasthan). Finer and pure material with size up to 0.7 microns will be produced at the expanded facilities.
Strengths
- Has mining rights in four different locations leased from the Union government for 20 years, thus enabling sourcing of raw materials at lower cost.
- Has a diversified product mix catering to various industries, thus providing a hedge against any downturn in any industry or product.
- R&D capabilities have been used to manufacture innovative value-added products such as sub-microns and nano additives.
Weakness
- Various pending legal proceedings related to Central excise, sales tax and labour could have a monetary impact of more than Rs 10.50 crore--a significant sum compared with the size of operations.
- Faces extreme competition from the unorganised sector/tiny sector, which is able to supply materials at lower cost due to exemption from excise duty.
Valuation
The issue comprises fresh issue of 16,75,000 equity shares and an offer for sale of 26,75,632 equity shares by the selling shareholders (Gujarat Venture Capital Fund 1995).
20 Microns has set a price band of Rs 50-Rs 55 per equity share of Rs 10 each, translating into a PE of 15.2x at the lower price band and 16.7x at the higher price band, based on the earning per share of Rs 3.3 in the year ended March 2008 (FY 2008) on post-IPO equity. Though there are no strictly comparable companies, one can refer to the valuations of English India Clay and Ashapura Minechem for assessing the kind of P/E 20 Microns can command. Currently, English India Clay is trading at P/E of 16 and Ashapura Minechem is trading at P/E of 7.
NSE Bulk Deals to Watch - Sep 4 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,BUY,305163,241.11,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,BUY,212296,244.23,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,B K SHAH CO KETAN BHAILAL SHAH,BUY,572389,245.78,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,CHOKHANI SECURITIES LTD,BUY,154828,237.57,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,CPR CAPITAL SERVICES LTD.,BUY,242523,235.94,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,DINDAYAL BIYANI STOCK BROKERS LTD,BUY,268403,252.50,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,DINESH MUNJAL,BUY,283605,233.21,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,396379,235.83,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,G RAMAKRISHNA,BUY,190902,240.31,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,KALPTARU INVESTMENTS PVT. LTD.,BUY,215119,225.89,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,349650,254.62,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,MANIPUT INVESTMENTS PVT LTD,BUY,254536,234.30,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,MARWADI SHARES AND FINANCE LIMITED,BUY,284706,239.33,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,P R B SECURITIES PRIVATE LTD,BUY,151637,262.94,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,PRASHANT JAYANTILAL PATEL,BUY,365101,232.12,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,PUJA TAPARIA,BUY,292872,249.94,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,R HEMA KUMARI,BUY,198000,231.46,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,R.M. SHARE TRADING PVT LTD,BUY,508325,245.96,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,SMC GLOBAL SECURITIES LTD.,BUY,298568,238.64,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,TRANSGLOBAL SECURITIES LTD.,BUY,402810,239.23,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,YES INVESTMENTS VISHAL KISHORE BHATIA,BUY,93000,237.77,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,YUVAK SHARE TRADING PVT LTD,BUY,235345,248.99,-
04-SEP-2008,CCL,CCL Products (I) Ltd,NOVEL SUPPLIERS PVT. LTD.,BUY,98548,148.25,-
04-SEP-2008,JDORGOCHEM,JD Orgochem Limited,YUVAK SHARE TRADING PVT LTD,BUY,150981,18.10,-
04-SEP-2008,NUTEK,Nu Tek India Limited,RASHI EQUISEARCH PVT. LTD.,BUY,89278,203.06,-
04-SEP-2008,NUTEK,Nu Tek India Limited,TRANSGLOBAL SECURITIES LTD.,BUY,260322,206.87,-
04-SEP-2008,NUTEK,Nu Tek India Limited,YOKE SECURITIES LIMITED,BUY,187551,206.28,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,HARBUX SINGH SIDHU,BUY,153359,628.05,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,156716,668.83,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,KOTECHA NIRMAL NARENDRA,BUY,154026,503.56,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,MANIPUT INVESTMENTS PVT LTD,BUY,149065,644.88,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,MARWADI SHARES AND FINANCE LIMITED,BUY,155703,655.74,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,P R B SECURITIES PRIVATE LTD,BUY,345176,642.96,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,PRASHANT JAYANTILAL PATEL,BUY,148155,656.17,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,YUVAK SHARE TRADING PVT LTD,BUY,207962,679.90,-
04-SEP-2008,SARLAPOLY,Sarla Performance Fibers,RAJESH RAJNIKANT VED,BUY,50000,100.00,-
04-SEP-2008,VINCARDS,Vintage Cards & Creations,K. K. FINSTOCK,BUY,4289,118.45,-
04-SEP-2008,VINCARDS,Vintage Cards & Creations,KAMAL KUMAR KABRA,BUY,869,116.85,-
04-SEP-2008,VINCARDS,Vintage Cards & Creations,MANSUKH SECURITIES & FINANCE LTD,BUY,7968,118.28,-
04-SEP-2008,VINCARDS,Vintage Cards & Creations,TRANSGLOBAL SECURITIES LTD.,BUY,2975,120.50,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,AMBIT SECURITIES BROKING PVT. LTD.,SELL,305163,241.95,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD,SELL,212296,244.58,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,B K SHAH CO KETAN BHAILAL SHAH,SELL,572387,248.91,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,BARON CONSULTANTS PVT LTD,SELL,167000,234.03,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,CHOKHANI SECURITIES LTD,SELL,154828,238.36,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,CPR CAPITAL SERVICES LTD.,SELL,242523,236.07,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,DINDAYAL BIYANI STOCK BROKERS LTD,SELL,268403,254.77,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,DINESH MUNJAL,SELL,283605,233.70,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,396379,236.00,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,G RAMAKRISHNA,SELL,190902,242.05,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,J M TEXTILES PRIVATE LIMITED,SELL,200000,225.50,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,KALPTARU INVESTMENTS PVT. LTD.,SELL,215119,226.91,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,349650,253.98,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,MAJESTIC SALES PROMOTION (P)LT,SELL,160000,228.45,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,MANIPUT INVESTMENTS PVT LTD,SELL,254536,235.06,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,MARWADI SHARES AND FINANCE LIMITED,SELL,284706,240.65,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,P R B SECURITIES PRIVATE LTD,SELL,151637,263.27,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,PRASHANT JAYANTILAL PATEL,SELL,365101,232.63,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,PUJA TAPARIA,SELL,292872,235.52,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,R HEMA KUMARI,SELL,198000,232.10,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,R.M. SHARE TRADING PVT LTD,SELL,508325,249.40,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,SMC GLOBAL SECURITIES LTD.,SELL,298568,240.18,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,TRANSGLOBAL SECURITIES LTD.,SELL,402810,240.86,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,YES INVESTMENTS VISHAL KISHORE BHATIA,SELL,145500,242.15,-
04-SEP-2008,AUSTRAL,Austral Coke & Projects L,YUVAK SHARE TRADING PVT LTD,SELL,235344,250.84,-
04-SEP-2008,CCL,CCL Products (I) Ltd,SHAILAJA FINANCE LIMITED,SELL,100000,148.01,-
04-SEP-2008,JDORGOCHEM,JD Orgochem Limited,YUVAK SHARE TRADING PVT LTD,SELL,193225,17.84,-
04-SEP-2008,NUTEK,Nu Tek India Limited,RASHI EQUISEARCH PVT. LTD.,SELL,70843,200.89,-
04-SEP-2008,NUTEK,Nu Tek India Limited,TRANSGLOBAL SECURITIES LTD.,SELL,260322,205.85,-
04-SEP-2008,NUTEK,Nu Tek India Limited,YOKE SECURITIES LIMITED,SELL,187551,206.12,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,HARBUX SINGH SIDHU,SELL,135698,624.69,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,156716,669.77,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,KOTECHA NIRMAL NARENDRA,SELL,154026,514.93,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,MANIPUT INVESTMENTS PVT LTD,SELL,149065,645.51,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,MARWADI SHARES AND FINANCE LIMITED,SELL,155403,664.58,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,P R B SECURITIES PRIVATE LTD,SELL,344126,645.29,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,PRASHANT JAYANTILAL PATEL,SELL,148155,651.85,-
04-SEP-2008,RESURGERE,Resurgere Mines & Mineral,YUVAK SHARE TRADING PVT LTD,SELL,208650,683.26,-
04-SEP-2008,SARLAPOLY,Sarla Performance Fibers,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,48406,99.99,-
04-SEP-2008,VINCARDS,Vintage Cards & Creations,K. K. FINSTOCK,SELL,4289,118.24,-
04-SEP-2008,VINCARDS,Vintage Cards & Creations,KAMAL KUMAR KABRA,SELL,4000,119.85,-
04-SEP-2008,VINCARDS,Vintage Cards & Creations,MANSUKH SECURITIES & FINANCE LTD,SELL,7968,118.35,-
04-SEP-2008,VINCARDS,Vintage Cards & Creations,TRANSGLOBAL SECURITIES LTD.,SELL,2975,119.54,-
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