Midcaps, Large Caps

Midcaps, Large Caps

Weekly Technical Picks - Dec 7 2009

Weekly Technical Picks - Dec 7 2009

Activation Ideas

Activation Ideas

Asian markets witness mixed Monday

Nikkei, Shanghai, Taiex post good gains while Sensex, Hang Seng, Sydney ends in red


Stock market in Asian region demoed a mixed trend on Monday, 7 December 2009, as investors turned cautious over the uncertainty over upcoming events, including U.S. retail sales data. Investors are seen indulging in profit taking in some markets after recent strong rallies. While markets in Japan, China and Taiwan were seeing some strong buying, most of the other markets in the region were seen struggling a bit to make headway.

On Wall Street, a strong job report pushed stocks considerably higher but a strong US dollar and weaker than expected factory orders report kept the gains under check. Still, the financial sector managed to end the day with solid gains. The Dow Jones Industrial Average ended higher by 22.07 points at 10388.22. Nasdaq ended higher by 21.21 points at 2194.35. S&P 500 ended higher by 5.96 points at 1105.88. The Dow was up by more than 121 points at one point of time.

On the economic front, the Labor Department reported that U.S. non-farm employment fell by 11,000 in November. In addition, previous months were revised to reflect fewer job losses. In turn, unemployment decreased to 10.0%, from the previous reading of 10.2%. Meanwhile, the average work week in November clocked in at 33.2 hours, a tick higher from the 33.1 hours consensus and 33.0 in October. In a separate piece of economic report, the headline jobs numbers were overshadowed by news that factory orders for October increased 0.6%, which is better than the flat reading that had been expected, but not as strong as September’s 1.6% increase.

In the commodity market, crude oil bounced off a seven-week low on speculation above-average global fuel stockpiles will decline as demand picks up with the economy recovering from the worst recession since World War II.

Crude oil for January delivery climbed as much as 63 cents, or 0.8%, to $76.10 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $75.65 a barrel at 3:40 p.m. Singapore time.

Brent crude oil for January settlement rose as much as 73 cents, or 0.9%, to $78.25 a barrel on the London-based ICE Futures Europe exchange. The contract was at $77.85 a barrel at 3:40 p.m. Singapore time.

Gold extended a retreat from a record, dropping for a third day, on speculation that an improving U.S. economy will result in higher interest rates, potentially boosting the dollar and cutting demand for the precious metal. Gold for immediate delivery, which touched a record $1,226.56 an ounce on 3 December 2009 dropped as much as 1.5% to $1,144.34, and traded at $1,156.84 at 2:24 p.m. in Singapore. February-delivery futures on the New York Mercantile Exchange’s Comex unit slid as much as 2.1% to $1,145 an ounce.

In the currency market, US dollar traded with a soft tone today as markets digest last week's sharp post-NFP moves.

The Japanese currency strengthened first time in five days on speculation Japanese companies are bringing back overseas earning. The yen was quoted at 89.88 against greenback from 90.56 on 4 December.

The Hong Kong dollar was trading at HK$ 7.7503 against the dollar. Actually the Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trade, the Australian dollar closed lower on Monday in response to a strengthening in the US dollar on the back of more positive US unemployment news. At local close, the Australian dollar was trading at $US0.9154/57, down 0.77 per cent from Friday's close of $US0.9224/26.

In Wellington trade, the New Zealand dollar fell against the greenback, which strengthened broadly after data showed the United States lost far fewer jobs than expected last month, bolstering hopes the US economy is on a stable path to recovery. The NZ dollar was at US71.14c at 5pm, down from US71.55c at 8am and US72.22c at 5pm yesterday.

The South Korean won closed at 1,153.30 won to the U.S dollar, down 0.3 won from Friday's close of 1,153.

The Taiwan dollar weakened against the greenback. The Taiwan dollar was trading lower against the US dollar at NT$ 32.2290, 0.0590 down from Friday’s close of NT$32.1700.

In the equities, Asian stock markets closed mixed despite a stronger cue from Wall Street, as resources stocks fell across the region although Japanese exporters rallied after the yen's losses Friday.

In Japan, shares market extended winning streak for sixth consecutive day, buoyed by strong gains in export related stocks after yen softened to lower 90 yen level, helped by as stronger-than-expected U.S. jobs data last week. Shares of chip equipment makers rose on rating upgrade from the Nomura Securities Co. Shipping companies shares advanced after the Baltic Dry index added 1.1% on Friday. At the closing bell, the Nikkei 225 Stock Average index was at 10,167.60, spurted 145.01 points or 1.45% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange gained 9.35 points, or 1.05%, to 898.93.

On the economic front, the ministry of finance said today in a report that Japan's reserve assets totaled $1,073,712 million as of November 30, 2009, up $16,943 million from the end of October. As of November 30, foreign currency reserves amounted to $1.02 trillion, while reserves with the International Monetary Fund stood at $4.43 billion. Gold reserves totaled $28.93 billion, while SDRs were worth $21.54 billion.

The number of single-family houses and condominium units auctioned off in Japan jumped 46.3% from a year earlier to 30,180 between April and September amid high unemployment and falling incomes, a real estate industry group said Sunday.

In Mainland China, share market finished the choppy session higher on the wave of short covering in last hour of trading after Chinese President Hu Jintao and Premier Wen Jiabao pledged to push forward the transformation of economic development pattern next year while maintaining a stable and comparatively fast economic growth. The Shanghai Composite index fluctuated almost eight times in and out of the boundary amid bout of profit booking and dip buying as investors awaited details from the government's annual central economic work conference.

The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, added 14.85 points, or 0.45%, to 3,331.89, while the Shenzhen Component Index on the smaller Shenzhen Stock Exchange advanced 1.2% or 166.59 points, to 14,051.525. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, gained 0.7%, to 3,668.83.

On the economic front, China’s Ministry of Finance announced on Friday that it plans to issue RMB 15 billion in discounted book-entry treasury bonds. The T-bonds, the 25th batch this year, will be sold during the period from Dec. 7 to Dec. 9.

In Hong Kong, the stock market benchmark lost with losses in materials and resources stocks after pullback in base and precious metal prices after greenback strengthened against major counterpart following signs the U.S. economy is on a steady path to recovery. Financials shares remained under pressure after the international Monetary Fund last week revealed its concern on the possible bubble in the Hong Kong property market.

At the closing bell, the Hang Seng Index stumbled 173.19 points, or 0.77%, to 22,324.96, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, fell 103.25 points, or 0.77%, to 13,358.30.

On the economic front, the Hong Kong Monetary Authority (HKMA) announced today (Monday) that the official foreign currency reserve assets of Hong Kong amounted to US$256.3 billion at the end of November 2009 (end-October 2009: US$240.1 billion)

In Australia, the stock market finished the session lower, extending losses for second consecutive day, despite a firm beginning inspired by positive close of Wall Street Friday after the US unemployment rate declined unexpectedly. The benchmark indices plunged into red terrain as a fall in commodity metal prices Friday dented materials stocks. Gold miners were hurt by sharp fall in gold prices. A weaker oil price also sent local oil stocks lower. Sell off in top four banks weighed down financials sector. At the closing bell, the benchmark S&P/ASX200 index stumbled 25.7 points, or 0.55%, to 4,676.5, meanwhile the broader All Ordinaries retracted 26 points, or 0.55%, to 4,695.2.

On the economic front, reflecting the decline in the US unemployment rate from 10.2% to 10%, jobs ads in Australia were up 5.2% in October and 12.3% higher than their 2009 lows recorded in July. Meanwhile, according to the Australian Industry Group / Housing Industry Association Performance of Construction Index, seasonally adjusted construction activity was stood at 47.6 in November, down from 50.9 in the previous month. A reading above 50 indicates expansion, while one below 50 suggests contraction.

In New Zealand, equities extend its losing session to end the first trading day of the week in the negative region. The NZX50 fell 0.25% or 7.88 points to 3138.58. The NZX 15 decreased by 0.43% or 24.16 points to close at 5680.36.

On the domestic front, house values rose 1% in the 12 months ended November 30, up from a 0.20% gain in the period through October, according to QV Valuations. The average sale price increased to $393,373 from $389,198 a month earlier. Total market activity was relatively static this year, "driven by a shortage of listings as prospective vendors decided to stay put rather than sell," said spokeswoman Glenda Whitehead. They expect that January and February will lead to further increases in activity and lead to more balanced market conditions.

In South Korea, stocks closed higher as foreign investors took comfort from Wall Street gains following the release of better-than-expected U.S. job data. The benchmark Korea Composite Stock Price Index (KOSPI) rose 7.89 points to 1,632.65, the sixth straight sessions of gains.

In Singapore, stocks market finished the session higher after hovering in a narrow range with benchmark Strait Times Index hold early gains throughout the session, inspired by positive lead from Wall Street Friday improved investors optimism for global economic growth outlook. At the closing bell, the blue chip Straits Times Index was at 2,796.98, rose 5.97 points or 0.21%.

In Taiwan, stock market in Taiwan marched towards the three week high, as investors ignored weekend local election results, with technology shares leading the gains. The benchmark Taiex share index resumed its upward momentum on Monday, by finishing the day higher by 124.73 points or 1.63% in a day, closing at 7775.64, the highest closing since 16 November 2009 when market closed the day at 7792.68. It also the highest single day gain since 16 November 2009 when market advanced by 127.05 points on the day.

In Philippines, the stock market closed lower extending a losing streak as investor's sentiment remained bearish. The mining and oil index drove higher but trading interest remained thin amid reports of continued violence on the domestic front rattled the investor's sentiments. The benchmark index PSEi lost 0.50% or 15.36 points to 3,046.63, while the All Shares index fell 0.45% or 8.63 points to 1,896.08.

In India, the key benchmark indices extended losses in late trade tracking weak European stocks and lower US index futures. The BSE Sensex closed down 118.40 points or 0.69% to 16,983.14. The Sensex rose 75.06 points at the day's high of 17,176.62 in early trade. The Sensex fell 158.12 points at the day's low of 16943.42 in late trade. The S&P CNX Nifty finished down 42.20 points or 0.83% to 5066.70.

Elsewhere, Malaysia’s Kula Lumpur Composite index finished lower at 1265.36 while stock markets in Indonesia’s Jakarta Composite index fell 27.79 points ending the day higher at 2483.76.

In other regional market, European shares retreated on Monday, pulling back from sharp gains made in the wake of U.S. jobs data, as investors continued to sell shares in mining companies. The U.K. FTSE 100 index declined 0.6% or 33.68 points to 5,289, the German DAX index lost 0.6%or 36.69 points to 5,781 and the French CAC-40 index fell 0.5% or 18.01 points to 3,829.

Smart Ideas - Dec 2009

Smart Ideas - Dec 2009

JSW Energy IPO oversubscribed

Gets bids for 28.40 crore shares

The initial public offer (IPO) of JSW Energy was subscribed by 1.25 times by 16:00 IST on the first day of the issue, data on NSE showed. The IPO received bids for 28.40 crore shares as against 22.75 crore shares on offer.

JSW Energy, a wholly-owned subsidiary of the JSW Group, has set the price-band for the IPO at between Rs 100 and Rs 115 per share. The issue closes on 9 December 2009.

JSW Energy has decided to issue a total of 4.22 crore shares to 7 anchor investors. Anchor investors are the first set of investors who provide subsequent investors a degree of confidence.

The company has also offered a Rs 5 per share discount to retail investors in the IPO.

The IPO has been graded by rating agency CARE as Grade 4, indicating above-average fundamentals.

Proceeds from the IPO would be used for developing the group's proposed power generation and transmission projects, mining projects and debt repayment.

JSW Energy has a generating capacity of 995 megawatt (MW) and plans to raise it to 3,140 MW by October 2010. The Group's flagship company, JSW Steel, will consume 300 MW once the new capacities come online.

Some of the IPO proceeds would also be used to part-fund its transmission project at Ratnagiri for which a 74:26 joint venture was formed with the Maharashtra State Transmission Company in August 2008.

Bharti Airtel survives weak market

The key benchmark indices fell in volatile trading on weak European stocks and lower US index futures. The BSE Sensex lost 118.40 points or 0.69%, off close to 195 points from the day's high and off close to 40 points from the day's low. The Sensex fell below the psychological 17,000 mark. Index heavyweight Reliance Industries (RIL) fell more than 3% after the company's bonus shares were admitted to trading today, 7 December 2009.

Metal stocks tumbled on decline in metal prices on the London Metal Exchange on Friday, 4 December 2009. Banking, auto and realty stocks also fell. The market breadth turned negative from strong breadth in early trade.

Intraday volatility was high. Stocks slipped into the red soon after an initial surge as a better-than-expected US job report rekindled talk the Federal Reserve may have to raise interest rates sooner than expected. The market extended losses in mid-morning trade. The market regained positive zone in early afternoon trade on strong response to the initial public offer (IPO) of power generation firm JSW Energy. The market moved between positive and negative zone later. The market slumped to hit fresh intraday low in mid-afternoon trade tracking weak European stocks. The market extended losses in late trade.

The government has not issued any direction to state-run banks on consolidation and it was up to the banks themselves to decide on mergers, Finance Minister Pranab Mukherjee said on Monday.

The initial public offer (IPO) of JSW Energy, a part of Sajjan Jindal-led JSW Group, was oversubscribed shortly after the bidding for the IPO commenced at 10:00 IST today, 7 December 2009, data on NSE showed. The issue was subscribed 1.25 times by 16:00 IST. The price band for the IPO is Rs 100 to Rs 115. The issue will close on 9 December 2009.

Overseas fund flows into Indian stock markets are manageable and foreign portfolio investors should be allowed smooth entry and exit to boost equity investments, Securities and Exchange Board of India (Sebi) Chairman C.B. Bhave said. In an interview to a newspaper, Bhave said the authority could only ensure the necessary regulations for such investments had been adhered to.

The slowdown in the Indian economy is showing signs of moderation, Prime Minister Manmohan Singh said on Friday 4 December 2009. Finance Minister Pranab Mukherjee said on Friday, the Indian economy is expected to show strong growth in the October 2009-March 2010 period.

India could return to a higher growth trajectory of 8-9% in two years, but it needs to invest more in infrastructure for sustaining such growth, World Bank president Robert Zoellick said on Friday. Excess liquidity in global markets is driving up prices of farm commodities, which could be potentially dangerous in the near term, Zoellick said.

The Reserve Bank of India (RBI) is likely to revise upwards growth forecasts for 2009/10 when it reviews policy in January 2010 and monetary action may be needed if inflation accelerates, Usha Thorat, a Reserve Bank of India (RBI) deputy governor said on Thursday 3 December 2009. Thorat, said India's exit from its loose policy would be a challenge and managing the crisis was easier than managing the recovery now.

Another RBI deputy governor Subir Gokarn said on Saturday, 5 December 2009 that a persistent rise in food prices may raise broader inflationary expectations. The central bank is looking to strike a balance between supporting growth and taming inflationary worries, Gokarn said. The exit from easy monetary policy is a "graded" process and economic growth alone will not determine its pace, Gokarn said. Data last week showed food prices rose 17.47% in the 12 months to 21 November 2009, after the weakest monsoon since 1972 followed by floods in parts of the country hurt farm output.

Government data, last week, showed the economy grew at its fastest pace in 18 months expanding an annual 7.9% in the September 2009 quarter. C. Rangarajan, who heads the prime minister's Economic Advisory Council, said he expected 2009/10 growth close to 7%. The central bank is scheduled to review policy on 29 January 2009.

Foreign direct investment (FDI) into India in the April-October period was about $18 billion, Trade Minister Anand Sharma said on Friday. Between April and September, the first half of the 2009/10 fiscal year, foreign direct investment was in excess of $15 billion, Sharma said.

Meanwhile, Prime Minister Manmohan Singh arrived in Moscow, Russia on Sunday to ink billions of dollars of weapons deals and for talks on a landmark nuclear deal that could significantly widen atomic fuel imports from Russia.

European shares retreated on Monday after hitting a two-week closing high in the previous session, with UK banks coming under pressure on news Britain was still considering some kind of windfall tax on bankers' bonuses. The key benchmark indices in France, Germany and UK fell by between 0.34% to 0.53%.

Most Asian stocks rose on a better-than-expected US job data. The key benchmark indices in China, Japan, South Korea, Singapore and Taiwan rose by between 0.21% to 1.63%. But the key benchmark indices in Hong Kong and Indonesia fell by between 0.77% to 1.11%.

China will maintain a proactive fiscal policy in 2010, and will keep monetary policy loose, a Chinese economic policy-making group was reported as saying Monday. The closing statement of the Central Economic Working Conference, an annual economic policy conference, appeared in reports citing Chinese state media. The conference was attended by President Hu Jintao and other top Chinese leaders.

Trading in US index futures indicated Dow could fall 37 points at the opening bell on Monday, 7 December 2009.

US markets ended higher on Friday, 4 December 2009, as employers cut less jobs than expected in the month of November 2009, which showed signs of improvement in the economy. The Dow Jones Industrial Average gained 22.75 points, or 0.2%, to settle at 10,388.90. The S&P 500 index rose 6.06 points, or 0.6%, to 1,105.98. The Nasdaq Composite Index added 21.21 points, or 1%, to 2,194.35.

US employers cut only 11,000 jobs in November 2009, the smallest decline since the recession started in December 2007. November unemployment rate also declined to 10% as against 10.2% in the month of October.

Countries should not rush to end fiscal incentives to help their economies cope with the global economic crisis, in order to build a base for sustained long-term growth, World Bank's chief economist Justin Lin said. Justin Lin said on Sunday he expected full global economic recovery in 2013. He said countries should keep fiscal measures in place until 2012, despite concerns from policy makers about the risk of inflationary pressure from higher government borrowing to fund the plans.

The BSE Sensex fell 118.40 points or 0.69% to 16,983.14. The Sensex rose 75.06 points at the day's high of 17,176.62 in early trade. The Sensex fell 158.53 points at the day's low of 16943.01 in late trade.

The S&P CNX Nifty fell 42.20 points or 0.83% to 5066.70. Nifty December 2009 futures were at 5,060, at a discount of 6.70 points as compared to the spot closing of 5,066.70. Turnover in NSE's futures & options (F&O) was Rs 58,040.99 crore, sharply lower than Rs 71,530.98 crore on Friday, 4 December 2009.

The market breadth, indicating the overall health of the market turned negative from a strong breadth in early trade. On BSE, 1315 shares advanced as compared with 1461 that declined. A total of 85 shares remained unchanged.

Among the 30-member Sensex pack, 20 fell while the rest rose.

BSE clocked a turnover of Rs 4744 crore, lower than Rs 5141.25 crore on Friday, 4 December 2009.

A deluge of global liquidity has boosted stocks across the globe this year. Governments and central banks around the world have injected trillions of dollars in the past one year to pull the world out of a most severe recession since the 1930s Great Depression. The Sensex is up 7335.83 points or 76.04% in calendar year 2009, as on 7 December 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8822.74 points or 108.11% as on 7 December 2009.

Coming back to today's trade, the BSE Mid-Cap index fell 0.79% and underperformed the Sensex. The BSE Small-cap index fell 0.41% and outperformed the Sensex.

Sectoral indices on BSE displayed mixed trend. The BSE Capital Goods index (up 0.69%), the BSE Teck index (up 0.34%), the BSE IT index (up 0.24%), the BSE FMCG index (down 0.01%), the BSE Consumer Durables index (down 0.05%),the BSE Power index (up 0.59%), the BSE Bankex (down 0.61%), the BSE PSU index (down 0.68%), outperformed the Sensex.

The BSE Metal index (down 3.29%), the BSE Realty index (down 2.44%), the BSE Oil & Gas index (down 1.97%), the BSE Healthcare index (down 1.18%), the BSE Auto index (down 0.83%), underperformed the Sensex.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) fell 3.07%. The company's bonus shares were admitted to trading effective today, 7 December 2009. The company has issued one fully paid bonus equity share for every one existing fully paid equity share of Rs 10 each.

Reliance Industries said on Friday 4 December 2009 one of its units signed a deal with Colombian state oil firm Ecopetrol for two deepwater blocks in Colombia. Under the deal, Ecopetrol will take a 20% stake in the Borojo North Block 42 and the Borojo South Block 43, which together cover an area of about 8,000 square kilometres in water depths ranging from 60-1,500 metres. Reliance's unit will hold the rest of the stake in the blocks and will be the operator. The deal is subject to approval from Colombia's upstream regulator.

Shares of public sector oil marketing companies rose as lower crude oil prices will reduce under-recoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. Indian Oil Corporation, BPCL and HPCL rose by between 0.85% to 1.61%. Crude oil for January 2010 delivery fell 1.3% to $75.47 a barrel on Friday 4 December 2009 on New York Mercantile Exchange.

Oil Ministry said today that it has sought Rs 20000-crore oil worth of bonds from the finance ministry.

Realty shares fell on profit taking. DLF, Omaxe, Indiabulls Real Estate, Unitech and Sobha Developers fell by between 0.93% to 5.97%.

Metal stocks fell after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 0.37% on Friday, 4 December 2009. Hindalco Industries fell 3.36%. The company hiked product prices by Rs 3000 a tonnes, with effective from 1 December 2009. Steel Authority of India, National Aluminum Company. Sterlite Industries, and Hindustan Zinc fell by between 2.66% to 4.21%.

Tata Steel, the world's eighth-largest steelmaker by sales fell 3.38% after company on Friday announced a partial closure of Corus' Teesside Cast Product (TCP) plant in north England, after four companies stopped buying metal from it. Operations will be suspended at the end of January 2010 forcing the loss of 1,700 jobs around 600 fewer than envisaged earlier, Tata Steel said in a statement.

Auto stocks fell on profit taking. Auto stocks have rallied recently on the back of robust sales figures for November 2009. India's second largest bike maker by sales Bajaj Auto fell 1.66%. The company's total vehicle sales rose 73% to 2.76 lakh units in November 2009 over November 2008. Motorcycles sales jumped 84% to 2.42 lakh units.

India's top truck maker by sales Tata Motors fell 0.79%. The company's total sales zoomed 65.49% to 54,108 units in November 2009 over November 2008.

Tata Motors' total passenger vehicle sales in the domestic market grew by 44.52% at 20,706 units last month, against 14,327 units in the same month last year. Exports jumped by 86.64% at 3,994 units, compared with 2,140 units in the same month last year, it added.

India's top tractor marker by sales Mahindra & Mahindra (M&M) fell 2.77%. The company's domestic auto sales soared 105.1% to 21,387 units in November 2009 over November 2008. M&M sold a total of 22,587 vehicles (domestic plus exports) in November 2009 as against 11,515 vehicles sold in November 2008.

India's largest small car maker by sales Maruti Suzuki India fell 1.19%. As per recent report Maruti Suzuki, plans to raise production by up to 75% over the next five years in a bid to hold on to its 50% market share. The company's total vehicle sales spurted 66.60% to 87,807 units in November 2009 over November 2008. Domestic sales spurted 60.10% to 76,359 units, while exports surged 128.60% to 11,448 units in November 2009 over November 2008.

But, India's largest motorcycle maker by sales Hero Honda Motors rose 0.46%. The company's total vehicle sales jumped 32% to 3.81 lakh units in November 2009 over November 2008.

Banking shares also fell on profit taking, reversing initial gains. India's largest bank by net profit and branch network State Bank of India fell 0.1%. The UPA government last week cleared the introduction of State Bank of India (Amendment) Bill in the current session of Parliament. The Bill seeks to bring the government's holding in the country's largest public sector bank on a par with other public sector banks at 51 %. Currently, the Union government holds 59% stake in SBI. At present, the stake of the promoter, that is Government of India, cannot fall below 55 %.

India's largest private sector bank by net profit ICICI Bank fell 1.18% even as its ADR rose 1.97% on Friday, 4 December 2009. ICICI Bank is reportedly set to become the second Indian financial institution after State Bank of India to get a full-fledged banking licence in Singapore, which will allow it to set up branches, ATMs, accept deposits and disburse loans like a local bank.

But, India's second largest private sector bank by net profit HDFC Bank rose 0.74% as its ADR rose 1.73% on Friday.

India's largest mortgage lender by total income Housing Development Finance Corporation (HDFC) rose 1.23% on bargain hunting after declining for the last three days in a row on investor worry a dual interest rate scheme on home loans introduced by the company would hit margins. After market hours on 1 December 2009 the firm announced a dual-rate loan scheme under which a borrower will be charged a fixed rate up to March 2012 and a floating rate thereafter. For a 20-year loan of Rs 30 lakh, a borrower will pay a fixed rate of 8.25% up to March 2012 and then a floating rate that's 500 basis points below the prime lending rate (PLR) - the institution's benchmark rate. Currently, the PLR is 13.75%.

Select construction shares rose on government's thrust on the infrastructure sector. Punj Lloyd, Nagarjuna Construction Company, IVRCL Infrastructure & Projects and Gayatri Projects rose by between 0.16% to 1.25%.

The government has set a target of spending $20 billion a year on road construction.

India's largest engineering and construction firm by sales Larsen & Toubro rose 1.2% on hopes of a strong order flow. Among other capital goods stocks, Bharat Heavy Electicals, ABB, SKF India, Punj Lloyd rose by between 0.26% to 6.63%.

IT stocks rose on strong US jobs data. US is the biggest market for Indian IT companies. India's largest software services exporter Tata Consultancy Services (TCS) rose 0.34% to Rs 697.85. But, the stock came off the day's high of Rs 705.80. India's third largest software services exporter Wipro rose 0.02% to Rs 637.55. It came off the day's high of Rs 647. Its ADR rose 0.25% on Friday.

India's second largest software services exporter Infosys Technologies rose 0.31% to Rs 2389.90 after its ADR rose 0.9% on Friday. The stock came off the day's high of Rs 2425.25. Infosys Technologies is reportedly partnering the Council of Scientific and Industrial Research for its open source drug discovery project that focuses on an efficient way to look for tuberculosis drugs.

The Indian rupee weakened against the dollar on Monday. The partially convertible rupee was at 46.56/57 per dollar, weaker than its Friday's close of 46.285/295. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports

India's largest mobile services provider by sales Bharti Airtel rose 2.11%. Bharti Airtel sees revenue pressured in the short term amid an intense price war in the country's wireless sector, director Akhil Gupta said on Monday.

India's second largest mobile services provider by sales Reliance Communications fell 1.7%. Reliance Communications under reported its revenue to the telecoms regulator during 2006/07 and 2007/08, the communications minister A Raja said on Monday.

Mobile operators including Bharti Airtel, Vodafone Essar and Reliance Communications are locked in a tariff war, raising concerns about telecom firms' profitability. The price war is aimed at grabbing new users as new firms enter the market.

FMCG shares fell on profit taking. ITC, Hindustan Unilever, Godrej Consumer HealthCare fell by between 0.06% to 1.48%.

Cement stocks fell on profit taking. Recent reports suggested a second wave of cement price hike is likely within a fortnight. There have already been two prices hikes within a week. After prices were up by Rs 5-10 for a 50 kg bag in the last week of November in western and southern India, prices rose by Rs 8-11 a bag in the Mumbai region on 2 December 2009. The next set of price rises would happen in the north which is enjoying comparatively stable prices till now vis-a-vis the south and the west, reports suggest.

India's largest cement producer by capacity ACC fell 1.14%. The company's cement shipments fell 4.04% to 1.66 million tonnes in November 2009 from 1.73 tonnes in November 2008.

India's largest dam builder Jaiprakash Associates fell 1.38% The company posted 48.77% jump in its cement sales to 1.03 million tonnes in November 2008 over November 2008.

Ambuja Cements and Birla Corporation fell by between 0.32% to 4.13%.

Aditya Birla Group's cement shipments rose 15.3% to 2.93 million tonnes in November 2009 over November 2008. Aditya Birla Group last month said it was combining its cement operations under group firm UltraTech Cement to make India's largest cement firm. UltraTech Cement fell 0.07%.

Suzlon Energy clocked the highest volume of 1.85 crore shares on BSE. Karuturi Global (1.22 crore shares), Mahindra Satyam ( 1.03 crore shares), Shiva Cement (0.81 crore shares) and Radhe Developers (0.8 crore shares) were the other volume toppers in that order.

State Bank of India clocked the highest turnover of Rs 202.51 crore on BSE. Suzlon Energy (Rs 153.68 crore), Reliance Industries (Rs 118.18 crore), Tata Steel (Rs 104.10 crore) and Mahindra Satyam (Rs 101.22 crore) were the other turnover toppers in that order.

Post Market Commentary - Dec 7 2009

Today's major news

Reliance Mediaworks partners In-Three for 3D films foray; the stock closed 2.89% lower.

United Breweries, Heineken sign pact for Indian beer market; the stock rises 4.73%.

EdServ Softsystems to raise $25 million to fund expansion; the stock spurts 4.99%.

ABB wins Rs506 crore order from BMRCL; the stock ends the day 0.31% higher.

Suzlon Energy has received 143.5 MW project in the USA; the stock jumps 4.73%.

Click here for more stories

Post-market summary

Global signals

European indices opened in red and remained there on selling pressure in banking stocks. At the time of writing this report FTSE 100 was trading 0.61% lower.

Among major Asian indices Kospi, Shanghai Composite and Nikkei closed in green while Hang Seng, Straits Times closed in red. SGX Nifty fell 76 points.

US stock futures opened week as investors keep an eye on speech of US Federal Reserve chairman seeking clue on outlook of interest rates.

Indian indices

On mixed leads from markets globally, the Indian indices opened marginally up but slumped and remained in negative territory for the rest of the day. The Sensex opened 5 points high, hit the intra-day high of 17177 and the day’s low of 16943. At closing bell, the Sensex was at 16983, 118 points lower. Nifty closed 42 points lower at 5067.

Sensex sentiment

The market breadth was negative. Out of 2,862 stocks traded on the BSE, 1,461 stocks declined, whereas 1,317 stocks advanced. Eighty-Four stocks closed unchanged.

Sectoral & stock screening

Out of the 13 sector indices on the BSE, only BSE CG, BSE TECk and BSE IT closed with marginal gains. The remaining indices ended lower. Among losers BSE Metal slid the most by 3.29% followed by BSE Realty that fell by 2.44%.

On stocks’ front, Piramal Healthcare surged the most by 5.01% followed by Suzlon Energy that rose 4.72%. Among losers, JSW Steel slid the most by 6.65% followed by Tata Communications that fell 5.82%.

Viewing volumes

On stocks’ turnover front, over 1.85 crore shares of Suzlon Energy changed hands on the BSE followed by Unitech (0.75 crore shares), GVK Power & Infrastructure (0.57 crore shares), Essar Oil (0.48 crore shares) and IFCI (0.42 crore shares).

BSE Bulk Deals to Watch - Dec 7 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
7/12/2009 530901 ACIL Cot Inds SHREE HARIVANSHA SEC PVT LTD B 100000 33.40
7/12/2009 530901 ACIL Cot Inds SREE RAM PLYWOOD MANUFACTURING COMPANY PRIVATE LIMITED B 120000 33.40
7/12/2009 530901 ACIL Cot Inds HOOGHLY MILLS PROJECTS LTD B 100000 33.38
7/12/2009 530901 ACIL Cot Inds TODI SECURITIES PVT LTD B 70000 33.39
7/12/2009 530901 ACIL Cot Inds BEENA R. SURANA S 75000 33.40
7/12/2009 530901 ACIL Cot Inds RAJENDRA NIHALCHAND SURANA S 125000 33.40
7/12/2009 521097 Amarjothi Spin PAT FINANCIAL CONSULTANT PVT LTD S 47112 55.43
7/12/2009 531541 Avon Organics HITESH SHASHIKANT JHAVERI B 120143 46.00
7/12/2009 531541 Avon Organics HITESH SHASHIKANT JHAVERI S 142042 46.03
7/12/2009 500042 BASF India OPG SECURITIES P LTD B 173462 416.83
7/12/2009 500042 BASF India OPG SECURITIES P LTD S 173462 416.98
7/12/2009 508664 Best Eastern Hot HITESH SHASHIKANT JHAVERI B 25010 145.40
7/12/2009 508664 Best Eastern Hot HITESH SHASHIKANT JHAVERI S 25009 145.40
7/12/2009 531261 Concurrent India ZAVERBEN POPATLAL SHAH B 100000 11.34
7/12/2009 531261 Concurrent India ABSOLUTE LEASING & FINANCE PVT LTD S 200000 11.35
7/12/2009 532022 Filatex Fash SUMAN GUPTA B 50004 14.24
7/12/2009 532022 Filatex Fash MANIBEN DHARAMSHI GADA B 300000 14.24
7/12/2009 532022 Filatex Fash RIDDHISIDDHI BULLIONS LIMITED B 108000 14.25
7/12/2009 532022 Filatex Fash ABDUL AZIZALI MERCHANT B 36200 14.24
7/12/2009 532022 Filatex Fash SHIRAZA RADIOWALA B 35000 14.31
7/12/2009 532022 Filatex Fash SUMAN GUPTA S 36895 14.35
7/12/2009 532022 Filatex Fash RAJANBABU BHAMBALE S 51334 14.24
7/12/2009 532022 Filatex Fash PARISHA NARENDRA BAHUVA S 42300 14.24
7/12/2009 532022 Filatex Fash ANJALI COMMODITIES PVT LTD S 182855 14.24
7/12/2009 532022 Filatex Fash AADESH COMMODITIES PRIVATE LTD S 322850 14.24
7/12/2009 532022 Filatex Fash NISHA JITESH JADAV S 112069 14.26
7/12/2009 532022 Filatex Fash NEETA JOSHI S 87518 14.24
7/12/2009 508918 Greycells Enter PRIMESEC INVESTMENTS LIMITED B 165000 64.79
7/12/2009 508918 Greycells Enter SAJEEV EKOPPARA THOMAS S 208000 64.84
7/12/2009 509709 Intl Conveyors I G E INDIA LTD B 22264 779.70
7/12/2009 509709 Intl Conveyors YAMINI DABRIWALA S 25000 779.70
7/12/2009 522285 Jayaswal Neco BHARAT NIHALCHAND SHAH B 475000 30.50
7/12/2009 530255 KAY Power KAUSHALYA GARG B 92500 8.80
7/12/2009 530255 KAY Power BAMPSL SECURITIES LTD. B 63070 8.67
7/12/2009 530255 KAY Power OMPARKASH GUPTA S 118891 8.66
7/12/2009 532400 KPIT Cummins PROFICIENT TRADING AND INVESTMENT PVT LTD. B 1332000 119.35
7/12/2009 532400 KPIT Cummins KPIT SYSTEMS LIMITED EMPLOYEES WELFARE TRUST B 1475939 119.35
7/12/2009 532400 KPIT Cummins LB INDIA HOLDINGS MAURITIUS II LIMITED FDI A/C S 2605586 119.39
7/12/2009 532400 KPIT Cummins LEHMAN BROTHERS ASIA LTD A/C GRA FINANCE CORPORATION LTD S 394414 119.35
7/12/2009 530273 Liberty Phos SHABANA G DARVESH B 50000 31.20
7/12/2009 530273 Liberty Phos ZAINA B DARVESH B 50000 31.13
7/12/2009 530273 Liberty Phos ANISHA R DHANANI S 100000 31.16
7/12/2009 532906 Man Aluminium MANISHA JAIN B 26721 45.00
7/12/2009 532906 Man Aluminium MOHINDER JAIN B 75643 45.00
7/12/2009 532906 Man Aluminium NIKHIL RAMESH CHANDRAMAN SUKHANI S 75643 45.00
7/12/2009 532906 Man Aluminium MAN INDUSTRIES INDIA LTD S 33900 45.00
7/12/2009 532613 Maxwell Inds SUNIL ROSHANLAL BEHKI B 500208 23.38
7/12/2009 532613 Maxwell Inds SUNIL ROSHANLAL BEHKI S 500208 23.69
7/12/2009 519287 Modern Dairies HITESH SHASHIKANT JHAVERI S 114072 83.97
7/12/2009 504112 NELCO HITESH SHASHIKANT JHAVERI B 140045 91.50
7/12/2009 519494 NK Inds SHREE HARIKRUPA AGRI PRODUCTS PVT LTD B 240000 31.25
7/12/2009 519494 NK Inds PRAVIN KUMAR THAKKAR S 240000 31.25
7/12/2009 523670 Noida Medicare SANJEEV MOHTA B 37825 16.00
7/12/2009 523670 Noida Medicare NIRMAL INVESTMENTS B 50000 16.00
7/12/2009 523670 Noida Medicare DHEERAJ LOHIA B 101439 16.01
7/12/2009 523670 Noida Medicare CAMPHAR SEC.& ADV.P.LTD. B 45739 16.45
7/12/2009 523670 Noida Medicare DHEERAJ LOHIA S 41000 16.85
7/12/2009 523670 Noida Medicare HEMANT KUMAR MOTIHAR S 158075 16.04
7/12/2009 531496 Omkar Overseas S N INVESTMENT B 50000 29.30
7/12/2009 531496 Omkar Overseas SAMIRDHI RUBHAI PUJARA B 100000 32.12
7/12/2009 531496 Omkar Overseas BELA TUSHAR ZAVERI S 28400 29.32
7/12/2009 531496 Omkar Overseas RAJESH KUMAR SONARAM TRIVEDI S 30000 29.30
7/12/2009 531496 Omkar Overseas RAJNIKANT OMKARMAL AGARWAL S 50000 31.70
7/12/2009 531496 Omkar Overseas VIJAY VELJIBHAI PADHARIA S 44203 29.79
7/12/2009 511702 Parsharti Inv JITENDRA KUMAR JAIN B 25000 36.10
7/12/2009 511702 Parsharti Inv JAYESHKUMAR PRAFULBHAI SONI S 19800 36.10
7/12/2009 511702 Parsharti Inv JITENDRA KUMAR JAIN S 25000 37.95
7/12/2009 511702 Parsharti Inv PATEL SHAILESH JIVANLAL S 22000 36.10
7/12/2009 531769 PFL Infotech PRIYA UTTAM JAIN B 50000 15.92
7/12/2009 531769 PFL Infotech KETAN KESHAVJI SHAH B 24000 15.92
7/12/2009 531769 PFL Infotech RAMESH KESHAVJI SHAH B 23500 15.92
7/12/2009 531769 PFL Infotech ROOPLATA MANAKCHAND JAIN S 64846 15.92
7/12/2009 531769 PFL Infotech BHAGYANAGAR INVSETMENTS & TRADING PVT LTD S 359000 15.92
7/12/2009 526588 Photoquip India HEMANSHU SHAH B 92358 42.46
7/12/2009 526588 Photoquip India REEMA GUPTA B 25000 39.65
7/12/2009 526588 Photoquip India VORA HEMALI DIPAK KUMAR S 25000 41.50
7/12/2009 526588 Photoquip India AAGAM ENTERPRISE S 25000 41.95
7/12/2009 526588 Photoquip India PANKAJBHAI BHOGILAL SHAH S 25000 42.18
7/12/2009 526588 Photoquip India REEMA GUPTA S 25000 42.86
7/12/2009 531855 Prabhav Inds PACIFIC FINSTOCK LIMITED S 75000 32.82
7/12/2009 517522 Rajratan Global SANGEETA CHORDIA B 25000 83.50
7/12/2009 517522 Rajratan Global NSB SECURITIES PRIVATE LIMITED S 25000 83.50
7/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 165216 29.48
7/12/2009 502587 Rama Pulp CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 39446 29.65
7/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 130679 29.36
7/12/2009 502587 Rama Pulp CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 44446 29.54
7/12/2009 590077 Ranklin Sol SUDHESHWAR KUMAR GUPTA S 26484 56.68
7/12/2009 511585 Regency Trust FALGUNIJ SHAH B 26400 14.21
7/12/2009 511585 Regency Trust SHAH SANDEEP ANANTKUMAR HUF B 15000 14.21
7/12/2009 511585 Regency Trust SRINJANI KAJARIA S 40000 14.21
7/12/2009 531646 RFL Intl MAHESH RAMANLAL SHAH S 30000 1.69
7/12/2009 533143 RMEDIA WRLD OPG SECURITIES P LTD B 295917 132.00
7/12/2009 533143 RMEDIA WRLD OPG SECURITIES P LTD S 295917 132.30
7/12/2009 531099 Rubra Med NIRUPA GUPTA S 75000 22.55
7/12/2009 532102 SBEC Sugar A TO Z HOLDING PVT LTD B 480000 13.00
7/12/2009 532102 SBEC Sugar TECHNICAST ENGINEERS LIMITED S 480000 13.00
7/12/2009 512529 Sequent Scientific PAWAN KUNDANLAL BANSAL B 100000 110.05
7/12/2009 512529 Sequent Scientific GRANDEUR CORPORATION LIMITED S 100000 110.05
7/12/2009 532323 Shiva Cement VISHWAS SECURITIES LTD. B 1654919 10.18
7/12/2009 532323 Shiva Cement COASTAL FERROTECH LIMITED S 950000 10.05
7/12/2009 532323 Shiva Cement VISHWAS SECURITIES LTD. S 1569242 10.09
7/12/2009 531626 Silver Smith PARESH SHAH BHAVANA B 25000 34.09
7/12/2009 531626 Silver Smith PARESH SHAH MEET B 21851 34.08
7/12/2009 531626 Silver Smith RAJENDRA BHAIYA B 30000 34.15
7/12/2009 531626 Silver Smith PARESH SHAH BHAVANA S 25000 34.15
7/12/2009 531626 Silver Smith PARESH SHAH MEET S 21851 34.16
7/12/2009 531626 Silver Smith SAINATH HERBAL CARE MARKETING P.LTD S 72234 34.10
7/12/2009 531626 Silver Smith RAJENDRA BHAIYA S 25302 34.15
7/12/2009 532874 Suryachakra Pow OPULENT VENTURE CAPITAL TRUST S 500000 19.12
7/12/2009 500408 Tata Elxsi OPG SECURITIES P LTD B 308050 237.04
7/12/2009 500408 Tata Elxsi OPG SECURITIES P LTD S 308050 237.17
7/12/2009 530595 Telecanor Glob OMPRAKASH KANAYALAL SHAH S 31470 25.75
7/12/2009 532358 Teledata Info CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 1900000 6.00
7/12/2009 533121 THINKSOFT AMIT MANILAL GALA B 51002 267.78
7/12/2009 533121 THINKSOFT GENUINE STOCK BROKERS PVT. LTD. B 100434 272.36
7/12/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. B 177836 282.33
7/12/2009 533121 THINKSOFT DINESH GORDHANBHAI PARMAR B 58703 281.25
7/12/2009 533121 THINKSOFT MBL & Co. LTD. B 78360 278.45
7/12/2009 533121 THINKSOFT MATRIX EQUITRADE PVT. LTD. B 72230 270.42
7/12/2009 533121 THINKSOFT CHIMANLAL POPATLAL MATALIA B 71649 288.60
7/12/2009 533121 THINKSOFT OPG SECURITIES P LTD B 242836 275.39
7/12/2009 533121 THINKSOFT HEMANSHU SHAH B 59608 284.31
7/12/2009 533121 THINKSOFT AMIT MANILAL GALA S 51002 267.51
7/12/2009 533121 THINKSOFT GENUINE STOCK BROKERS PVT. LTD. S 100434 272.34
7/12/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. S 177836 280.89
7/12/2009 533121 THINKSOFT DINESH GORDHANBHAI PARMAR S 58703 274.17
7/12/2009 533121 THINKSOFT MBL & Co. LTD. S 78360 276.81
7/12/2009 533121 THINKSOFT MATRIX EQUITRADE PVT. LTD. S 72230 270.65
7/12/2009 533121 THINKSOFT CHIMANLAL POPATLAL MATALIA S 71649 287.61
7/12/2009 533121 THINKSOFT OPG SECURITIES P LTD S 242836 275.34
7/12/2009 533121 THINKSOFT HEMANSHU SHAH S 59608 283.68
7/12/2009 531874 Venus Ventures ANGEL INFIN PRIVATE LIMITED B 50000 15.41
7/12/2009 531874 Venus Ventures KALPANA MADHANI SECURITIES PVT. LTD. B 49700 15.41
7/12/2009 531874 Venus Ventures AMRUT SECURITIES LTD. S 75000 15.41
7/12/2009 519602 VMF Sof Tech TAMMINEEDI BALAJI HUF B 60546 7.44
7/12/2009 519602 VMF Sof Tech VENKATESH VADDEPALLY S 53746 7.44

NSE Bulk Deals to Watch - Dec 7 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-DEC-2009,BHARTISHIP,Bharati Shipyard Limited,PILOT CONSULTANTS PRIVATE LIMITED,BUY,212500,230.15,-
07-DEC-2009,BHARTISHIP,Bharati Shipyard Limited,SAFE ENTERPRISES,BUY,175000,231.31,-
07-DEC-2009,BHARTISHIP,Bharati Shipyard Limited,SETU SECURITIES LTD,BUY,26466,228.56,-
07-DEC-2009,GLOBUSSPR,Globus Spirits Limited,SATYEN KANORIA,BUY,94501,91.39,-
07-DEC-2009,MAXWELL,Maxwell Industries Ltd.,BEHKI SUNIL ROSHANLAL,BUY,484768,23.36,-
07-DEC-2009,NUCLEUS,Nucleus Software Exports,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,BUY,219133,123.95,-
07-DEC-2009,RAMANEWS,Rama Newsprint and Papers,NAINA SANGHAI,BUY,411757,29.76,-
07-DEC-2009,RAMANEWS,Rama Newsprint and Papers,SETU SECURITIES LTD,BUY,386508,31.05,-
07-DEC-2009,SHREERAMA,Shree Rama Multi-Tech Ltd,TURAKHIA OVERSEAS PVT LTD.,BUY,300000,5.50,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,AANGI SHARES & SERVICES PVT. LTD,BUY,58039,292.25,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,AUM SECURITIES PRIVATE LTD.,BUY,93783,276.64,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,BP FINTRADE PRIVATE LIMITED,BUY,66773,269.71,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,CHIMANLAL P. MATALIA,BUY,81222,288.00,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,BUY,169410,277.55,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH G. PARMAR,BUY,157280,273.11,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,84098,272.70,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,HARBUX SINGH SIDHU,BUY,73390,264.92,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,77475,268.75,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,82672,270.60,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,83652,272.27,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,BUY,93235,276.27,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MITHUN SECURITIES PVT. LTD.,BUY,56651,282.06,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,BUY,81962,274.87,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,PATEL PRAKASHBHAI NARSINHBHAI,BUY,87026,262.93,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,202479,281.15,-
07-DEC-2009,BHARTISHIP,Bharati Shipyard Limited,PILOT CONSULTANTS PRIVATE LIMITED,SELL,62500,222.89,-
07-DEC-2009,BHARTISHIP,Bharati Shipyard Limited,SETU SECURITIES LTD,SELL,191375,228.70,-
07-DEC-2009,GLOBUSSPR,Globus Spirits Limited,SATYEN KANORIA,SELL,134501,90.79,-
07-DEC-2009,LOGIXMICRO,Logix Microsystems Limite,INDIA INVESTMENT PARTNERS LIMITED A/C ICG Q LIMITED,SELL,86879,51.75,-
07-DEC-2009,MAXWELL,Maxwell Industries Ltd.,BEHKI SUNIL ROSHANLAL,SELL,484768,23.83,-
07-DEC-2009,NUCLEUS,Nucleus Software Exports,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,SELL,219133,123.87,-
07-DEC-2009,POLARIS,Polaris Software Lab Ltd,ORBITECH LIMITED,SELL,567887,182.01,-
07-DEC-2009,RAMANEWS,Rama Newsprint and Papers,SETU SECURITIES LTD,SELL,388979,30.86,-
07-DEC-2009,SB&TINTL,SB&T International Ltd,VANISHA MISHRA,SELL,126868,10.19,-
07-DEC-2009,SHREERAMA,Shree Rama Multi-Tech Ltd,MAGNUS CAPITAL CORPORATION LIMITED,SELL,300000,5.50,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,AANGI SHARES & SERVICES PVT. LTD,SELL,129382,284.55,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,AUM SECURITIES PRIVATE LTD.,SELL,93783,276.52,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,BHAKTISURI SHARES AND SERVICES,SELL,161557,284.19,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,BP FINTRADE PRIVATE LIMITED,SELL,68273,270.57,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,CHIMANLAL P. MATALIA,SELL,81222,288.96,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,SELL,169410,277.52,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH G. PARMAR,SELL,157280,278.30,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,84098,272.95,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,HARBUX SINGH SIDHU,SELL,73390,265.06,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,77475,268.70,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,82672,270.73,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,83652,272.98,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,SELL,93235,277.66,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,MITHUN SECURITIES PVT. LTD.,SELL,56051,281.73,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,SELL,81962,274.99,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,PATEL PRAKASHBHAI NARSINHBHAI,SELL,120026,277.22,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,SCB CORPORATION(PROPRIETOR:BAMCHA SUNIL CHIMANLAL),SELL,67713,277.12,-
07-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,202479,282.45,-

Daily Market Review - Dec 7 2009

Daily Market Review - Dec 7 2009

Daily News Roundup - Dec 7 2009

Allahabad High Court allows farmers to reclaim Reliance Power's Dadri project land. (BL)

Tata Steel Europe (Corus) has decided to keep open some facilities at its troubled Teesside Cast Products in contrast to the earlier plan of mothballing the entire plant. (BL)

GVK Power and Infrastructure has acquired 17% stake in Bengaluru International Airport from L&T Infrastructure Development Projects for Rs6.9bn. (BL)

Bharat Forge-Alstom JV to make power equipment at an investment of Rs24bn is setting up the plant in the Mundra SEZ. (BL)

Aban Offshore along with its Singapore-based subsidiary Aban Singapore has Rs166.35bn of debt on its balance sheet, has admitted that it has failed to meet some of the conditions set by its bankers. (ET)

Reliance Infrastructure-led consortium has won the Rs17bn NHAI project to construct a six-lane highway between Pune and Satara in Maharashtra. (BL)

The governments of Maharashtra, Gujarat and Andhra Pradesh have begun talks with the ADAG for a possible relocation of the 8,000MW Dadri gas-based power plant from Uttar Pradesh. (BS)

L&T and EADS plans to send a revised proposal to FIPB, with a new joint venture structure in which the European defence giant would hold 26% stake. (BS)

Reliance Exploration and Production, a venture of Reliance Industries, has divested 20% stake in two Colombian deepwater blocks to Ecopetrol, Colombia's national oil company. (BL)

Mahindra Satyam won Rs1bn outsourcing contract from Airbus to manage its internal quality and processes. (ET)

GMR Infrastructure is close to raising about Rs130bn from domestic banks for funding its four power projects and two road projects. (BS)

JSW Steel may sell its coal mine in Mozambique to sister company JSW Energy. (ET)

HDFC rejigs top management, Deepak Parekh to step down on December 31. (BS)

Reliance MediaWorks partners with In-Three Los, Angeles to establish an India-based facility that convert 2D films and videos into 3D. (ET)

Reliance Power plans to commission the first phase of its 1,200MW Rosa Power project in Uttar Pradesh before the end of December 2009, three months ahead of schedule. (ET)

REC looks to raise Rs45bn through follow-on offer. (BL)

Both BSNL and MTNL are set to miss the mobile number portability deadline of December 31. (TOI)

Godrej Properties has fixed a price band of Rs490-530 a share for its Rs5bn IPO. (BL)

JSW Energy raises Rs4.65bn through the issue of shares to seven anchor investors under its public offer. (BS)

PTC India says it is planning to list its financial services arm, PTC India Financial Services; IPO likely to be floated by the next fiscal. (FE)

After settling the dispute for its Orissa plant, Essar Steel is going ahead with its US$600mn, 6mt pa pelletisation plant and expects it to be operational by September next year. (FE)

Future Group plans a JV company by bringing together Future Money, its consumer finance business; Future Generali, its insurance business; and Centrum Direct. (BS)

United Bank of India received the Centre's approval for an IPO. (BL)

Infotech Enterprises will be acquiring the operational assets of US-based IDT Inc in Hyderabad for an undisclosed sum. (BL)

SBI gets government nod for acquiring State Bank of Indore. (DNA)

Core Projects ties up with the University of Oxford to bring in global standards for the excercise in India. (BS)

Dunlop, acquired by the Ruias in 2005, will start trading on the bourses once again after a gap of seven years. (BS)

Mascon Global plans to entirely acquire C-SAM Inc, the Sam Pitroda-founded mobile commerce company. (BS)

Vodafone Essar cuts roaming charges by over 50%. (TOI)

Indian Bank may float subsidiary for NPA management. (BS)

Viceroy Hotels is planning to raise about Rs1.5bn through private placement to part finance its Rs10bn expansion. (DNA)

Ruia Group plans to raise Rs1bn in listed entity Falcon Tyres through private placement of shares. (ET)


Foreign exchange reserves rose by US$1.4bn to US$287bn, for the week ended November 27. (BL)

Government is discussing scrappage incentives so that vehicle owners get rid of old vehicles and invest in new and more fuel-efficient vehicles, which have low emissions. (BL)

Department of Atomic Energy has raised civil nuclear power generation to 30,000MW by 2020 against the earlier target of 20,000MW. (BL)

TRAI may look into tariffs being offered by mobile operators based on the cost structure of the telecom companies. (BL)

Government tables a bill protecting it from potential liabilities to the tune of Rs140bn arising from levy sugar requisitioned from sugar mills in the past. (BL)

RBI has hinted that it may not immediately hike interest rates in spite of spiralling food inflation. (TOI)

FDI into the country increased by over 56% to US$2.3bn in October. (TOI)

Prime Minister says 3G spectrum would be auctioned soon, thus ending the uncertainty generated by reported differences between ministries of telecom and defence on vacation of airwaves. (TOI)

The mobile number portability to take effect from "early next year" Prime Minister Manmohan Singh said.

Gems and jewellery exports fell 8% to US$2.11bn in October compared to the same period last year. (BS)

Ulips likely to pump Rs400bn into the bourses. (ET)

Quest for Brigh-test!

"To be on a quest is nothing more or less than to become an asker of questions."

Dhoni’s boys have triumphed in their quest for the pinnacle of Test Cricket. The Indian stock market is struggling to make new highs. Dhoni & Co. will find that life at the Top is not as easy as it appears. The real test of their character begins now. The same applies to the stock market. After having rebounded in a spectacular fashion from March lows, the market is finding it a bit tough to advance further.

The market is in a consolidation phase and the same is healthy. The key indices are likely to remain sideways in a range. The Nifty will face resistance around 5180-5200. It has to close above this level with good volumes for a few days to provide fresh impetus to the bulls. Don't get carried way though if at all the Nifty manages to cross 5200, as it might struggle to surpass 5300 and is likely to hit a wall near 5360.

Non-index counters may see some action. High beta is avoidable after a runaway rally. Defensive plays like IT, FMCG and Pharma would be safer. Local consumption driven themes like Retail and Hotels could turn out to be good bets.

A slew of IPOs are lined up over the next few days and weeks. JSW Energy issues opens today. Godrej Properties IPO will open on Dec. 9.

RIL bonus shares will hit the markets today. Nestle India Board will consider acquisition of Speciality Foods' nutrition business today.

The much-hyped Copenhagen Summit on climate change opens today. The United Nations sponsored conference will run until December 18. The world’s political leaders are facing the difficult task of trying to reach an agreement on a new global climate treaty.

FIIs were net buyers in the cash segment on Friday at Rs1.98bn on a provisional basis. The local funds were net sellers of Rs566.4mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs7.86bn. FIIs were net buyers of Rs4.28bn in the cash segment on Thursday. FIIs' net investments in Indian stocks this year have crossed $15.9bn. Mutual Funds were net sellers of Rs1.65bn in the cash segment on Thursday.

US stocks closed higher on Friday after a government report showed a marked improvement in the labour market, stoking hopes that the world's largest economy could recover from recession earlier than expected.

Employers in the US cut the fewest jobs in November since the recession began and the jobless rate fell. Separately, Treasury Secretary Timothy Geithner said that the job market may improve further as economic growth strengthens.

A strong dollar sent gold prices tumbling and also hit commodities and stocks that benefit from a weaker greenback. Bond prices slumped, boosting the corresponding yields.

The Dow Jones Industrial Average rose 23 points, or 0.2%, to close at 10388.90 after hitting a 14-month high of 10,516.70 in the morning. The S&P 500 index gained 6 points or 0.6%, at 1,105.98. The Nasdaq Composite index advanced 21 points, or 1%, to 2,194.35.

All the three US indexes gained last week.

US stocks rallied across the board in the first two hours after the open, leaving the Dow and S&P 500 at fresh 14-month highs and the Nasdaq just short of one. But the advance lost some steam later in the day amid concerns that While the labor market is healing, job growth is not expected to pick up until later next year.

Employers cut 11,000 jobs from their payrolls in November, the Labor Department reported. It was the smallest number of job losses since the start of the recession in December 2007. Economists were looking for employers to cut 125,000 jobs in the month. Job losses in September and October were also revised lower by a total of 159,000.

The unemployment rate, generated by a separate survey, fell to 10% from 10.2% in October. It was the biggest one-month decline in more than three years. Economists thought the unemployment rate would hold steady at 10.2%.

Some of the improvement in the unemployment rate in November was attributable to job seekers giving up and dropping out of the market entirely. The report showed 15.4 million Americans are out of work and seeking jobs. Meanwhile, another 6 million have given up looking and another 9.2 million have only found part-time work when they want full-time work.

Geithner said that the US economy is gradually growing and that chances are high the unemployment rate will decline next year.

In the day's another economic report, factory orders rose 0.6% in October after climbing 1.5% in the previous month. Economists had forecast no change.

Bank of America gained 3.3%. The biggest US bank raised US$19.3 billion selling securities for US$15 each in the biggest sale of stock or preferred shares by a US public company since at least 2000.

Staffing companies advanced following the government’s employment report. Monster Worldwide surged 12%, the most since Aug. 7. Robert Half International Inc. jumped 11%.

Chemical company DuPont slumped 7% after it said its seed business will delay the release of several products.

COMEX gold for February delivery fell US$48.80 to settle at US$1,169.50 an ounce after ending the previous session at a record high of US$1,218.30 an ounce. Dollar-traded gold tumbled as the dollar firmed up.

The dollar gained versus the euro and yen. The stronger dollar caused dollar-traded oil to give up most of its morning gains. The Dollar Index, a gauge of the currency against six major trading partners, jumped 1.6%.

US light crude oil for January delivery fell 99 cents to settle at US$75.47 a barrel on the New York Mercantile Exchange.

Treasury prices tumbled, raising the yield on the 10-year note to 3.47% from 3.37% late on Thursday.

Odds that the Federal Reserve will boost interest rates by its June meeting rose to 55% from 43% on Thursday, according to Fed funds futures trading.

Across the Atlantic, European shares staged a sharp turnaround after data painted a much better-than-expected picture of the US economy. After trading lower though much of the session, the pan-European Dow Jones Stoxx 600 index rose 1.1% to 249.05, taking weekly gains to 2.7%.

Germany's DAX index advanced 0.8% to 5,817.65 and the French CAC-40 index rose 1.3% to 3,846.62. The UK's FTSE 100 index was up just 0.2% at 5,322.36.

Indian markets wiped out last week’s decline as worries regarding Dubai's debt problems eased. Bulls cheered stronger than anticipated GDP growth data, monthly auto sales and recovery across the global markets also helped Indian markets stage a sharp bounce back. The BSE benchmark Sensex added 2.8% to close at 17,102 and NSE Nifty added 3.4% to close at 5,109.

On Friday, The BSE Sensex slipped 84 points to end at 17,101 after touching a high of 17,292 and a low of 17,033. The index opened at 17,182 against the previous close of 16,185. The NSE Nifty was down 23 points to shut shop at 5,108.

In Asia, the Nikkei in Japan was up 0.4%, while Australia's S&P/ASX ended lower by 1.4%. Shanghai SE Composite in China gained 1.6% and Hang Seng index in Hong Kong was down 0.3%.

In Europe, stocks were in the red. The FTSE in the UK was down 0.5%, The DAX in Germany was down 0.5% and the CAC 40 index in France gained 0.4%.

Coming back to India, among the BSE sectoral indices, the Auto index was the top loser, shedding 1.5%, followed by the Banking index that was down 1.2% and the BSE Oil & Gas index was down 1%. Among the major gainers were, BSE Pharma index up 1.2%, BSE Teck index up 0.4% and BSE FMCG index up 0.4

The BSE Mid-Cap index slipped 0.2% and the BSE Small-Cap index was up 0.4%.

Among the 30-components of Sensex, 19 stocks ended in the red and 11 ended in the positive terrain. Maruti, M&M, Hero Honda, ICICI Bank and ONGC ended in the negative terrain. Among the major gainers were Bharti Airtel, TCS, Reliance Infra, Hindalco and Tata Motors.

Outside the frontline indices, the big losers in the broader market were Jain Irrigation, Exide Ind, Jet Airways, Jubilant Org and United Spirits. On the other hand, gainers included Essar Oil, Biocon, Fortis Healthcare and MRPL.

Sensex to open marginally lower

Headlines for the day

GVK Power buys L&T's 17% stake in Bangalore airport company for Rs686 crore - Business Line

ONGC puts plans for marginal fields on the back burner - Business Line

RBI turns focus on balancing inflation and growth - Business Line'

GMR raising Rs 13,000 cr for power, road projects - Business Standard

Hatsun Agro setting up milk plant in TN - Business Standard

Events for the day

Major corporate action:

Bonus Issue of Valson Industries in ratio 1:1

Pre-market report

Global signals

The European stocks opened the Friday with gains and able to sustain the gains throughout the day and closes the day with gains. At the end, FTSE 100 closed 0.18% higher at 5322.

The US markets closed with gains on back of better Job data figures. Nasdaq 100 up 21 points and closed the day at 2194.

In today's trade, the Asian indices showing the mixed trend in the early trading hours. Indices like Jakarta Composite & Hang Seng trading in negative. While Straits Times, Nikkei & Shanghai Composite trading in positive territory. And at the time of writing this report, SGX Nifty that opened with gain of 27 points, erased its all gains and trading in red zone with the loss of 15 points.

Indian markets

The domestic indices are expected to open marginal lower, remain volatile owing to the Mixed Asian cues.

Among the local indices, the Nifty could test the 5150-5182 range on the up side, while on the down side it could find support at 5050 and 5100. While the Sensex is likely to get support at 17000 and may face resistance at 17300.

Indian ADR's

Among the Indian ADRs trading on the US bourses, all the ADR managed to closed in green except Dr. Reddy that slides the most with loss of 2.77%.

Commodity cues

In the commodity space, wherein the Crude oil prices reported marginal decline, with the Nymex light crude oil for January series decline by $0.36 to settle at $75.47 a barrel.

In the metals space, Comex Gold for February series sheds $49.30 to settle at $1169.50 to a troy ounce.

Daily trend of FII/MF investment in equities

On December 04, 2009, FIIs were the net buyers of the Indian Stocks in the tune of Rs428.70 crore (with the gross purchase of Rs2365.20 crore and gross sales of Rs1936.50 crore).

While the Domestic mutual funds, on December 03, 2009, were the net seller of the stocks in the tune of Rs168.80 crore (with gross purchase of Rs613.80 crore and gross sales of Rs778.70 crore).

Market may edge higher on better-than-expected US job data

The market may edge higher in early trade on gains in Asia stocks and stronger-than-expected US job data. The slowdown in the Indian economy is showing signs of moderation, Prime Minister Manmohan Singh said on Friday 4 December 2009. Finance Minister Pranab Mukherjee said on Friday, the Indian economy is expected to show strong growth in the October 2009-March 2010 period.

India could return to a higher growth trajectory of 8-9 % in two years, but it needs to invest more in infrastructure for sustaining such growth, World Bank president Robert Zoellick said on Friday. Excess liquidity in global markets is driving up prices of farm commodities, which could be potentially dangerous in the near term, Zoellick said.

The Reserve Bank of India (RBI) is likely to revise upwards growth forecasts for 2009/10 when it reviews policy in January 2010 and monetary action may be needed if inflation accelerates, Usha Thorat, a Reserve Bank of India (RBI) deputy governor said on Thursday 3 December 2009. Thorat, said India's exit from its loose policy would be a challenge and managing the crisis was easier than managing the recovery now.

Government data, last week, showed the economy grew at its fastest pace in 18 months expanding an annual 7.9% in the September 2009 quarter. C. Rangarajan, who heads the prime minister's Economic Advisory Council, said he expected 2009/10 growth close to 7%. The central bank is scheduled to review policy on 29 January 2009.

Foreign direct investment (FDI) into India in the April-October period was about $18 billion, Trade Minister Anand Sharma said on Friday. Between April and September, the first half of the 2009/10 fiscal year, foreign direct investment was in excess of $15 billion, Sharma said.

Meanwhile, Prime Minister Manmohan Singh arrived in Moscow, Russia on Sunday to ink billions of dollars of weapons deals and for talks on a landmark nuclear deal that could significantly widen atomic fuel imports from Russia.

Most of Asian markets rose on Monday on positive US economic data. The key benchmark indices in Japan, South Korea, Singapore and Taiwan rose by between 0.06% to 1.4%. But the key benchmark indices in China, Hong Kong and Indonesia fell by between 0.31% to 0.91%.

US markets ended higher on Friday, 4 December 2009 as employers cut less jobs than expected in the month of November 2009, which showed signs of improvement in the economy. The Dow Jones Industrial Average gained 22.75 points, or 0.2%, to settle at 10,388.90. The S&P 500 index rose 6.06 points, or 0.6%, to 1,105.98. The Nasdaq Composite Index added 21.21 points, or 1%, to 2,194.35.

US employers cut only 11,000 jobs in November 2009, the smallest decline since the recession started in December 2007. November unemployment rate also declined to 10% as against 10.2% in the month of October.

Countries should not rush to end fiscal incentives to help their economies cope with the global economic crisis, in order to build a base for sustained long-term growth, World Bank's chief economist Justin Lin said.

Justin Lin said on Sunday he expected full global economic recovery in 2013. He said countries should keep fiscal measures in place until 2012, despite concerns from policy makers about the risk of inflationary pressure from higher government borrowing to fund the plans,

Back home, the key benchmark indices lost ground on Friday as weak US services sector data fueled worries of a slower economic recovery. Stocks fell in Europe after mixed performance of Asian stocks. The BSE 30-share Sensex fell 84.14 points or 0.49% to 17,101.54 on that day.

As per provisional data, foreign funds on Friday, 4 December 2009, bought equities worth a net Rs 198.14 crore. Domestic funds sold stocks worth a net Rs 56.64 crore

JSW Energy IPO Review

Strong visibility

Power generation capacity is planned to go up from 860 MW to 3,140 MW in various phases by April 2011

JSW Energy (JSWEL), incorporated in 1994, is part of the JSW group headed by Sajjan Jindal, which is in turn a part of the OP Jindal Group. JSWEL is the holding company for the JSW Group's power business. The company currently owns and operates thermal power plants with an aggregate generation capacity of 860 MW, all in Karnataka.

Currently, the company is augmenting its power generation capacity on its own or through subsidiaries and has about 2790 MW of generation capacity under construction. Of the 2,790 MW under implementation, the 4X300 MW Ratnagiri power project is being developed through its 100% subsidiary JSW Energy (Ratnagiri) (JSWERL). Similarly, the 8X135 MW Phase I and 2X135 MW Phase II of the lignite based Balmer power project is being developed through its wholly owned subsidiary Raj West Power (RWPL). However, the 3X80 MW Kutehr Hydel power project in Himachal is being executed directly by the company.

Over and above this 2,790 MW of generation capacity under implementation, the company also has power projects aggregating to a generation capacity of 7740 MW at early stage of development.

Though majority of the revenue comes from power generation, the company is one of the early power traders. It also provides operation and maintenance services for power plants of group companies and gets operation & maintenance (O&M) fees for that service. Similarly, it also offers power project management service to group companies over and above the captive requirements. JSWEL has also got into lignite mining and development of transmission network through various joint ventures, primarily to feed its power plant or to facilitate evacuation of power generated from its stations. With the Maharashtra State Electricity Transmission Company (MSETCL), it has set up Jaigad PowerTransco to execute 169 KM of transmission line. The company holds a 74% stake in the JV company. Similarly, it has signed JV with Rajasthan State Mines and Minerals (RSMML) to develop and operate the lignite mines for the supply of lignite to the Balmer Power Project of the company. It has incorporated Barmer Lignite Mining Company, where it holds a 49% stake, with the balance 51% held by RSMML.

The company has supply agreement with JSW Steel for supply of fuel (either coal or corex gas) for its 2X130 MW SBU I at Vijay Nagar. For 2X300 MW SBU II, the company currently gets coal from the open market. But it has signed a long-term coal supply agreement for 25 years with Sungai Belati of Indonesia. Similarly, it has signed a 25-year supply agreement with Sungai Belati for its Ratnagiri power project. However, for the Balmer power project, the company has got captive lignite mines in Rajasthan, which were to be developed and operated by Balmer Lignite Mining Company, a JV company of JSWEL. Moreover, the JSW group has 11% interest in a consortium that has been allotted a coal block from the Utkal A�Gopalprasad West mines near Talcher, Orissa. The coal will be supplied to the Chattisgarh power project of the company.

Of the total issue proceeds, the company proposes to utilize Rs 2142.53 crore to part finance power projects aggregating 2790 MW of generation capacity and the lignite mining as well as the transmission line projects. The company also proposes to retire debts of Rs 470 crore from the issue proceeds and the balance will be used for general corporate purposes.

Strengths

The company has experience and track record in developing and operating power generation plants, with its first power generation unit been commissioned in 2000 and running efficiently since these 9 years.

Currently, the company has 860 MW of operational power generation capacity at Vijaynagar, Karnataka. Further, it has also commissioned the first unit (135 MW) of the 8X135 MW Balmer power plant of RWPL in Rajasthan. Moreover, the company expects to commission another 570 MW of capacity comprising 2X135 MW of RWPL's 1,080-MW Balmer Phase I power plant and the first unit of JSWERL's 1,200-MW power plant in Maharashtra by March 2010. As per the implementation schedule given in the prospectus, all the remaining units of 1,080-MW Balmer power plant of RWPL as well as JSWERL's 1,200-MW projects will be commissioned by April 2011. The management feels it is currently ahead of schedule. Hence, by April 2011, the company will have an operational generation capacity of 3,140 MW. This gives strong revenue visibility for the company.

As of now, of the total 3,140 MW of power generation capacity, to be on stream by April 2011, the company has long-term power off-take agreement of 62-63%. The balance is to be sold through merchant sales. The company is looking for long-term power off-take agreement because, as per projections, the current high merchant power tariff will eventually converge with long-term power tariff, with increased supply over the next five years. It will, therefore, participate in the long-term power supply tenders called by utilities. But, at the moment, the high exposure to merchant power sales will allow the company to capitalize on the high merchant power tariff currently prevailing in the country.

Weaknesses

All the thermal power projects, both commissioned and under implementation (except the lignite linked Balmer power project), are based on imported coal. Given the fact that the merchant power tariff is driven by demand and supply, any surge in price of imported coal will affect the margin of merchant sales. Moreover, the merchant power tariff is also subjected to regulations. In September 2009, CERC capped the merchant power tariff to Rs 8 for a short period of 45 days. The states are now empowered to compulsorily sell the power generated within their boundary to the state utilities in case of severe shortage. The government of Karnataka, during December 2008 to May 2009, asked all the generation companies in Karnataka to sell power only to state utilities at a fixed price. A similar development may affect higher realization in merchant power sales. For instance, the company could not pass fully the rise in fuel cost in FY 2009. Thereby, there was contraction in the overall operating margin of the company for FY 2009.

The BLMC, the JV mining company between the company and Rajasthan State Miner and Minerals, which is to supply lignite to the Balmer Power Project of the company, is yet to commence mining operation pending completion of land acquisition. The company has applied to the government of Rajasthan for alternate fuel source for the project and has got in-principle approval to use imported coals as alternative fuel for a period of one year on the condition of RWPL gets the energy charges and the fuel costs determined by the RERC. Continued delay in land acquisition and mining to full capacity will affect the operation of this plant.

Baring the 260-MW SBU I, all other power projects are developed with Chinese power generation equipment and its long-term operational efficiency has to be seen.

As JSW Steel is expanding its captive power generation capacity, its captive requirement of corex gas is set to increase and its availability for JSW Energy's SBU I will decline, forcing the company to rely on domestic or imported coal for which it is yet to tie-up.

For the Ratnagiri project, the company had originally entered into an MoU with the government of Maharashtra for 1000 MW. But the company intends to expand the capacity to 1,200 MW and has applied to the Maharashtra government but is yet to get the approval. Similarly for the Rajasthan project, the company wants to develop additional 270 MW as Phase II in addition to the 1,080 MW in Phase I. But it is yet to get the approval of the government of Rajasthan.

Though it has entered into loan agreements or has obtained letters of intent from various banks for Rs 9979.5 crore of debts for its projects under construction, the company has not signed firm agreements with banks for projects under development in Rajasthan and Himachal Pradesh.

Valuation

Consolidated net sales of the company for the fiscal end March 2009 was up by 42% largely on account of improvement in average sales realization from Rs 4.48/ unit to Rs 6/ unit powered by higher merchant power tariff. However, the net profit after minority interest was lower by 14% to Rs 279 crore on the back of contraction in margin as the company could not fully pass on rise in fuel cost as well as absence of CER (certified emission reduction) income in FY 2009 as compared to Rs 327.56 crore of CER income in the corresponding previous year period.

The EPS for FY 2009 works out to Rs 1.7 at both the upper price band (of Rs 115) as well as the lower price band (of Rs 100). Thus, the PE on its FY 2009 earning works out to 58.8 times at the lower price band of Rs 100 and 67.6 times at the upper price band of Rs 115. In comparison, the largest player NTPC quotes at 21.3 times of its FY 2009 earning. Similarly, the NLC and Gujarat Industries Power quote at a PE of 18.7 times and 21.1 times FY 2009 earnings. However, if all goes as per plans, the 265% rise in its generation capacity over the next 15-18 months can power the company's earnings much faster than those of other power generation companies. The company has offered a discount of Rs 5 for retail investors.

via CM

JSW Energy IPO - Good bet for long term investors!

Sajjan Jindal led JSW Energy will enter capital markets on Monday, December 7 with a public issue aggregating to Rs 27 billion. The price band of the issue has been set at Rs 100-115 a share.

The company intends to utilize the issue proceeds to partially finance construction and development of the identified projects aggregating to 2,790 MW in capacity; 400 KV transmission project and mining venture, and for repayment of corporate project.

JM Financial, Kotak Mahindra Capital Co, JPMorgan and Morgan Stanley r are helping the company in the fund raising process.

The issue has been graded by Care as CARE IPO Grade 4, indicating above average fundamentals.

Expansion plans:

The company has chalked out a capex plan of Rs 26.13 billion. It intends to utilize the issue proceeds to partially finance construction and development of the identified projects aggregating to 2,790 mega watt in capacity; 400 kilo watt transmission project and mining venture, and for repayment of corporate project.

Pros in investing:

Demand for Power seen rising: The per capita consumption of electricity is one of the lowest in India. According to the 17th electric power survey, May 2007 (`EPS`), India`s peak demand is expected to grow at a CAGR of 7.6% over a period of 10 years (FY2007 to FY2017) and would require a generating capacity of 300,000 MW by 2017 to cater to this demand compared to an installed capacity of 132,329 MW as on Mar. 31, 2007.

Facilities already operating: JSW Energy is an established energy company with operational capacity of 860 MW with additional 2,790 MW of capacity under construction and implementation stage. The company also has 7,740 MW of capacity under development, thus, making the total capacity of the company at 11,390 MW, with total project outlay of Rs 541.34 billion.

Strong corporate house backup: The company belong`s O.P. Jindal Group of company which has a strong presence in the industry.

Cons - You have to watch out for:

The project is constrained by project implementation risk involving multi-fold leap in capacity compared to present operations, exposure to volatile fuel prices and risk related to foreign exchange commitments.

However, good news for the retail investors is the company is offering discount of Rs 5 a share.


For six months ended September 2009, the total income of the company was at Rs 8.75 billion with net profit being placed at Rs 2.68 billion, against total income of Rs 18.52 billion of FY`09 with net profit at Rs 2.77 billion. In last 4.5 years, the total net profit of the company was at Rs 15.78 billion. Net worth of the company, as at Sep.30, 2009 is at Rs 17.48 billion. With a strong promoter background, rising demand for power and facilities already under operation, the issue is suggestible to subscribe from the long term perspective.

via IRIS

Weekly Newsletter - Dec 7 2009

Weekly Newsletter - Dec 7 2009

Cipla

Cipla

5,080 crucial for the Nifty

The Nifty closed the session in a Doji pattern for the third consecutive day on Friday, indicating continued uncertainty at these levels. The daily relative strength index (RSI) at 58 is on the triggerline indicating caution. RSI can fall below 50 after two days of negative close and moves to the overbought zone after two days of positive close. According to technical analyst at Sharekhan, the support at the 5,080 level remains crucial for the uptrend to continue.

The Nifty maintained the support of 5,080 on Friday, and closed at 5,108 on profit-booking. According to F&O data, foreign institutional investors (FIIs) have build-up short positions in the index futures and booked profit in stocks futures. This means there is a possibility FIIs would like to cover short positions at lower levels resulting in a modest correction going forward.

The support for the Nifty remains at 5,080 and resistance above the 5,200 level. The Nifty made an intermediate top at 5,181.95, and an intraday high of 5,181 on December 3. Thus, for a very short-term, this level is acting as resistance. So analyst at HDFC Securities expect a slight correction in the Nifty.

The trading volume in call and put options suggests that the index has strong resistance above the 5,200 level and it may lose its support of 5,080 going forward. This is because the 5,200 call continues to add shares in open interest (OI) through sell-side trade, indicating a short build-up, while the 5,100 call added 150,750 shares in OI through sell-side trades.

The support for the Nifty continues at the 5,000 level as this strike put added 257,050 shares in OI through sell-side trades. It holds the highest OI among the put options.

The participants now expect the Nifty to find it difficult to hold the 5,100 level as they were seen covering short positions at the 5,100 put through buy-side trades.

Among the stocks futures, long build-up was seen in Steel Authority of India, Tata Motors, NTPC, Hindalco, Ranbaxy and Cipla. Short-covering was seen in Bharti Airtel, DLF, Idea Cellular, Suzlon Energy and Unitech. Fresh short build-up was seen in BHEL, Hero Honda and Hindustan Unilever.

via Business Standard

Fortis Healthcare

We recommend a buy in Fortis Healthcare stock from a short-term perspective. It is apparent from the charts of the stock that it has bee on a long-term uptrend from its October 2008 low of Rs 45, forming higher peaks and troughs. Moreover, the stock's medium as well as shortterm trend also is up. On December 4, the stock decisively broke through a significant medium-term resistance at Rs 115 by jumping 6 per cent. There is an increase in volumes over the past two trading sessions. With this surge the stock reinforced its long-term uptrend and is trading way above its 21- and 50-day moving averages.

The daily relative strength index (RSI) is featuring in the bullish zone and weekly RSI has entered this zone from the neutral region. The daily moving average convergence and divergence indicator has entered in to the positive territory. Considering that the stock's long-term up trendline is in tact we are bullish from a short-term perspective.

We expect it to move up further until it hits our price target of Rs 133 in the forthcoming trading sessions. Trader with a short-term horizon can buy the stock, while maintaining a stop-loss at Rs 114.

via BL

SGX Nifty Live Update - Dec 7 2009

5,123.50 -6.50

Value Guide - Dec 2009

Value Guide - Dec 2009

Morning Note - Dec 7 2009

Morning Note - Dec 7 2009

Small Caps

Small Caps

JSW Energy IPO Analysis

JSW Energy's initial public offer is for investors willing to wait for returns in the medium term. The company has been operating a small capacity generating station for the last few years but the bulk of its new projects will be commissioned in stages over the next one year and more. These projects, which will be part-funded from the proceeds of this public offer, will start contributing to the earnings in full measure from 2011-12.

In the near term, especially in the immediate period post-listing, the stock may not deliver major returns mainly because of the market's saturation with power IPOs in the last few months; the price performance of some these recent listings tell the tale.

Therefore, while investors looking for listing gains may not find this offer attractive, those seeking a good power exposure in their portfolios over the medium-term can invest.

Valuation

By conventional valuation parameters based on historical earnings such as price-earnings multiple (33 on fully diluted equity at Rs 115) or price-to-book-value (4.3 at Rs 115, compared to industry average of less than 3), the offer does appear expensive. Yet, it is important to note that earnings from almost the entire generating capacity to be part-funded by this offer will kick in only in the medium-term.

Current earnings are based on a capacity of 260 MW; against this, the company will have a generating capacity of 3,140 MW by 2011. By the end of this fiscal, JSW's capacity will have risen to 1,295 MW. What is important is that fuel supply and offtake of power have been fully tied up for the entire capacity that will go on stream by 2011 and the projects will be commissioned in stages gradually, adding to earnings.

The finances for the projects under implementation have been fully secured, including debt from banks. Transmission infrastructure for one of the major projects in Ratnagiri is being implemented by a joint venture with the State utility. With all major aspects of the projects taken care of, the uncertainties in implementation appear limited.

Project profile

JSW owns a 260 MW plant at Vijayanagar, Karnataka, part of whose generation is sold to group company, JSW Steel, and the remaining on short-term basis to other buyers. To this was added 600 MW in two stages in June and September this year. While half the power produced here is again being sold to JSW Steel, the other half, save a small 6 MW, will be sold on short-term basis through the power-trading subsidiary, JSW Power Trading Company.

The two big generation projects that are under construction now are the 1,200 MW plant at Ratnagiri, Maharashtra, and the 1,080 MW station at Barmer in Rajasthan. Both of these are being executed by wholly-owned subsidiaries.

The Ratnagiri project is based on imported coal for which JSW has signed contracts with an Indonesian company, PT Sungai Belati and an affiliate company of JSW Steel in Mozambique to supply coal. In fact, coal from the 25-year supply deal with the two companies will fuel some of JSW's other projects on the drawing board now.

The Rajasthan project will use lignite mined by a joint venture with a State government company and will also supply its entire electricity to the state utility. The first 135 MW unit of this project will be commercialised shortly with the remaining seven units to be commissioned in stages over the next one year.

The first of four units at Ratnagiri will be commissioned by January 2010 with the remaining ones scheduled to go on stream in stages over the next one year. Half the power produced here will be sold on long-term PPAs to the Maharashtra state utility (300 MW) and Adani Enterprises (270 MW); the other half will be sold on short-term basis through the power trading subsidiary.

Eventually when all the projects are commissioned by 2011, JSW's sales will be shared equally between long-term PPAs with State utilities and short-term merchant buyers. Even in the unlikely event of merchant power prices falling, as some fear, JSW's balanced exposure to that market will help the company.

JSW is also planning a 240 MW hydroelectric plant in Himachal Pradesh but several approvals are yet to be received for this project including the crucial environmental approval. The company has included this project among those that will be part-financed by the public offer though it is not set for commissioning till the end of 2015.

We have not considered this project, as also others adding up to 7,740 MW on the drawing board, while valuing the offer. These projects, all of them coal-based, are projected for commissioning in 2014-15.

Risks to our recommendation

All the projects under construction now will be equipped with Chinese boilers and turbines. There have been misgivings on Chinese equipment following the failure of a turbine installed by a state utility. Yet, a number of private power projects under implementation in the country now use Chinese equipment to save on cost and time.

Indeed, JSW's original 260 MW plant uses Chinese equipment and the company appears to have been encouraged by the experience to follow suit with its other projects. However, group company JSW Steel is in the process of setting up a boiler and turbine manufacturing plant in joint venture with Toshiba Corporation near Chennai. This venture should be able to supply to JSW's future projects.

With the company adopting a 75:25 debt:equity ratio for funding its projects, as much as Rs 9,979 crore of the total Rs 14,055 crore capital outlay for the ongoing projects will have to be funded by bank loans. While these have been tied up, they have not been fully disbursed yet. Some of these loans are also contracted on a variable rate basis. These, along with the undisbursed part of the loans which will take prevailing higher rates, could exert some pressure on the internal accruals of the company. A lot will depend on realisations from short-term power sales to cover up for higher debt servicing costs.