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Tuesday, November 30, 2010
Markets recover as GDP data beats estimates
Domestic indices reversed their losses and ended the session with significant gains in response to India’s Q2 GDP data beating market expectation and strong buying in realty stocks.
Major headlines
India's growth on track; Q2 GDP at 8.9%
Ranbaxy gets USFDA nod for Donepezil
Rural Electrification Corporation soars on getting FCB nod
MOIL IPO - Is it really worth applying ?
Qualified Institutional Buyers (QIBs) 49.16
Non Institutional Investors 8.77
Retail Individual Investors (RIIs) 10.86
How many times do you think retail would be oversubscribed by ? Even a 2L subscription won't give you good allotment.
Monday, November 29, 2010
Daily Grey Market Premiums - Nov 29 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| R.P.P. Infra Projects Ltd. | 75 | 2 to 2.50 |
| Claries Life science | 228 to 235 | 18 to 20 |
| Manganese Ore Ltd. | 340 to 375 | 205 to 215 |
| Shipping Corporation | 135 to 140 | -- |
| One 97 Communication | - | -- |
Loan scam worries linger, -ve start likely
Indian markets are likely to start the session on a negative note following the global peers. Real estate and banking stocks would still continue to trade in pressure.
Headlines for the day:
HDFC chalks out a major foray into education
GMR to sell InterGen stake for $1.23 billion
ITC may pick up 60% in JV with Nitesh Estates
Daily News Roundup - Nov 27 2010
Reliance Industries plans to boost gasoline and diesel exports after restarting units shut for maintenance. (ET)
The Income Tax department surveys premises of GlaxoSmithKline, Piramal Healthcare and Wockhardt. (ET)
Environment Ministry has issued show-cause notices to Lavasa Corporation and Jindal Steel and Power for flouting green norms in their projects. (BL)
Sensex survives scam scare...Ends slightly down
Indian markets extended their losing streak to the fourth straight trading session and third consecutive week as investors remained worried about the fallout of the bribes-for-loans scam on the banking system and the real estate market. Today’s fall was led by persistent selling in Realty, Metals and Power stocks. The broader indices were among the worst hit today amid reports that brokers were offloading clients' shares to make up for the shortfall in margins. However, the BSE as well as the NSE clarified that there was no margin default on the part of any broker and that the trades were being settled on time.
Seeking redemption
Stability is not immobility. - Klemens Von Metternich.
After the mayhem of last week, the market will look to find some stability. The bulls will try their best to put the bribes-for-loans scam behind, but whether they are successful remains to be seen. A mix of domestic and global headwinds will continue to cast a shadow on the sentiment.
Market may extend losses on negative global cues
The market is likely to extend a four-day declining trend on weak global cues. Asian markets were trading lower amid rising worries over euro zone debt crisis. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate a flat opening.
Sunday, November 28, 2010
SCI FPO
Investors with a long-term perspective of at least two-three years can consider applying at cut off in the follow-on public offer (FPO) of The Shipping Corporation of India (SCI), the country's largest shipper (35 per cent share) in terms of Indian flagged tonnage.
EKC
Investors can consider phased exposure to the stock of Everest Kanto Cylinder, a high pressure cylinder manufacturer. At the current price of 97, the stock trades at 11 times its expected consolidated per share earnings for FY-12. The jump in volume sales in India and in its Dubai unit, lower costs of operations anticipated for new capacities and depletion of high-cost inventory augur for improvement of earnings from FY-12. Investors would need at least a two-year perspective to benefit from macro opportunities arising from CNG city gas distribution and Euro IV norms. Given the present market volatility, the stock can be accumulated in phases, on dips.
Power Grid, IDFC
The outlook for PowerGrid has turned negative. As long as PowerGrid rules below Rs 109, it would face stiff resistance. The stock finds an immediate resistance at Rs 103 and support at Rs 95. A close below Rs 95 could weaken it to Rs 84 initially and then to Rs 72-73. Only a close above Rs 109 would change the outlook to positive.
MOIL - IPO Review
Investors could consider applying to the IPO of Indian manganese producer MOIL India, which appears attractively priced given its quality ore reserves, low operating costs and booming domestic market. At the higher end of the offer price band with the retail discount factored in (Rs 356.25), the company would trade at an EV/EBIDTA ratio of 4.6 times and 10.5 times its trailing 12-month earnings. The enterprise valuation is at a discount to global peers such as Eramet and Eurasia Natural Resources.
Friday, November 26, 2010
Housing loan scam continues to haunt markets
The housing loan scam continued to haunt the domestic markets. Realty stocks witnessed a sharp fall as the CBI issued notices to 21 firms.
Major headlines
Housing scam: CBI issues notices to 21 companies
SC rejects Reliance Infrastructure road toll bid plea
Cairn seeks government nod to sell stake to Vedanta
Market slips for third week on housing loan scam
Domestic indices extended their losing streak to a third consecutive week after CBI exposed the housing loan scam. Realty stock tumbled over 13%.
Major news for the week
Fertiliser stocks dip as government cuts NBS subsidy
Siemens’ FY2010 consolidated net profit up 7% YoY
CBI unveils fake housing loan scam, 8 officials arrested
Food inflation eases to 10.15%
M&M to buy 5.5% of BT's stake in Tech Mahindra
Asian markets end mostly in red
Sentiments continue to be bearish ahead of weekends
Asian stocks markets headed mostly lower ahead of the weekend as investors eyed a mix of continued worries on the peripheral European economies and a rush to cover positions in risky assets amid thin trades owing to the Thanksgiving Day. The day started on moderately steady note on lack of cues from the overnight trades, as the US markets remained shut. The initial spell of gains was cut short by a reemergence of risk appetite during the late trades even as the Spanish PM Zapatero said that Spain is cutting its budget and dashed out possibilities of a rescue package for the European country. Most major indices ended in red with Japan being the only notable exception.
Bribery scandal rattles stocks
The bursting of a bribery scandal by the Central Bureau of Investigation on Wednesday, 24 November 2010, involving officials of some top PSU banks and finance firms rattled the bourses with key benchmark indices -- the BSE Sensex and S&P CNX Nifty hitting 2-1/2 month lows. The market fell for the third straight week after hitting record closing high early this month. Realty, construction, banking and some firms whose names were reportedly involved in the scandal took a heavy drubbing. The market fell in four out of five trading sessions during the week.
Sentiment remains weak
Investor sentiment has been hit by the latest bank loan bribery scandal. The Central Bureau of Investigation on Wednesday, 24 November 2010, unearthed a bank loans bribery scandal, arresting 5 senior officials of PSU banks and CEO of LIC Housing Finance.
Sensex drops 4% in four days on loan scam, euro-zone debt woes
Weakness persisted on the bourses as the key benchmark indices extended losses for the fourth day in a row, with a bank loans bribery scandal and weak global stocks weighing on investor sentiment. The barometer index BSE Sensex and the 50-unit S&P CNX Nifty settled at 2-1/2 month lows. The Sensex shed 181.55 points or 0.94% to 19,136.61, off 281 points from the day's high and up 181.79 points from the day's low. World stocks fell as worries over sovereign-debt contagion in the euro zone continued to escalate.
BSE Bulk Deals to Watch - Nov 26 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
26/11/2010 524412 AAREY DRUGS YOGESH ROSHANLAL GUPTA B 47000 29.40
26/11/2010 524412 AAREY DRUGS NIRUPAMA YOGESHBHAI GUPTA B 43000 29.40
NSE Bulk Deals to Watch - Nov 26 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
26-NOV-2010,BHARATGEAR,Bharat Gears Ltd,ADITYA DAMANI,BUY,46667,62.99,-
26-NOV-2010,COREPROTEC,Core Projects and Technol,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,1540839,206.19,-
26-NOV-2010,COREPROTEC,Core Projects and Technol,GENUINE STOCK BROKERS PVT LTD,BUY,970342,221.91,-
Daily News Roundup - Nov 26 2010
Government threatens to cancel coal field allocation to NTPC and CIL. (BS)
Tata Steel is looking at further acquisition to boost its capacity for meeting booming demand. (BS)
L&T bags an order worth Rs10.3bn for construction related works. (BS)
Maruti Suzuki estimates that 20% of the cars will run on CNG by 2016. (BL)
NTPC proposes to invite tenders for power generation equipments for all of its upcoming gas-based plants. (ET)
SBI not to go for overseas bond issue soon. (ET)
Maruti to hire 3,000 employees for expanding service network. (BS)
Supreme Court rejects Reliance Infra’s plea on toll bid disqualification. (BS)
Cairn seeks nod from the Government for transfer of its main assets. (ET)
Adani to develop non-LNG port at Hazira. (BL)
Kingfisher has received preliminary approval from lenders to recast its debt. (ET)
Jet Airways has entered into a pact with Alitalia to offer non-stop flights from Milano Malpensa to New Delhi. (BS)
Food inflation hits 3-month low of 10.5% for the week ended November 13. (ET)
MNP to be available pan-India from January 20, 2011. (ET)
Government may announce fresh round of exports sops in January 2011. (ET)
Current A/C deficit may exceed 3% of GDP, says Y V Reddy. (BL)
SEBI to probe the possibility of insider trading in shares of at least nine companies. (ET)
Sensex, Nifty spooked by late sell-off
The benchmark Indian stock indices fell to the lowest level in the past two months as investors dumped stocks left, right and center in the wake of the housing loan scam.
The late selling could have been amplified due to the F&O expiry for the month of November. India was the worst performing market in Asia even as other regional indices extended the previous session’s recovery.
Shaky start…select buying likely
We are inclined to believe those whom we do not know because they have never deceived us. - Samuel Johnson.
The bulls may be ‘down’ but whether they are ‘out’ only the coming days will tell. The market may recover some lost ground after the selloff in the past few sessions. The start today appears to be shaky and sluggish. Global cues are indecisive with European markets rising and Asian benchmarks in red. US markets were shut on Thursday on account of Thanksgiving holiday.
Asian cues may drag markets at start
Domestic indices are expected to open the session on a negative note on the back of weak Asian markets. The markets may consolidate before posting new gains
Headlines for the day:
Tata Steel eyes more acquisitions
Kingfisher Airlines board approves debt recast package
Cairn seeks govt nod for sale of assets to Vedanta
Market seen opening lower on weak Asian stocks
The market is likely to open on a subdued note, extending three-day fall, tracking weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate that the Nifty could decline 17 points at the opening bell.
Year-end profit taking may continue to weigh on the the domestic bourses in the near term. A number of stocks have clocked decent to strong gains this year. Funds based in US and Europe follow calendar year as their accounting year. The market has lost ground soon after hitting a record closing high early this month.
Grey Market Premium - MOIL
| R.P.P. Infra Projects Ltd. | 68 to 75 | 2 to 2.50 | -- | -- |
| Claries Life science | 278 to 293 | 20 to 22 | 1700 to 1800 | 3400 to 3600 |
| Manganese Ore Ltd. | 340 to 375 | 245 to 250 | 2400 to 2500 | 4800 to 5000 |
BSE Bulk Deals to Watch - Nov 25 2010
eal Date Scrip Code Company Client Name Deal Type * Quantity Price **
25/11/2010 530901 ACIL SONAL INTERNATIONAL LTD B 62812 21.97
25/11/2010 531761 Amulya Leas MOHIT VINODKUMAR AGRAWAL B 30000 47.00
25/11/2010 531761 Amulya Leas VANDANA MANGAT S 35300 47.00
25/11/2010 521131 Anjani Fabrics CHAMPALAL GOPIRAM AGARWAL B 50000 58.47
NSE Bulk Deals to Watch - Nov 25 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
25-NOV-2010,GRAVITA,Gravita India Limited,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,93929,265.14,-
25-NOV-2010,LICHSGFIN,LIC Housing Finance Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1057952,1024.61,-
25-NOV-2010,LICHSGFIN,LIC Housing Finance Ltd,C D INTEGRATED SERVICES LTD.,BUY,1030439,1051.44,-
Volatile markets end at two-month low
The Indian markets witnessed volatility and took a cut in the last hour to close the session at two-month low; realty sector was the worst performer
Major headlines
Food inflation eases to 10.15%
Power Grid Corporation slips on FPO listing; the stock closes 0.36% lower
Larsen & Toubro secures Rs1,030 crore orders; the stock ends 3.48% down
Nifty December 2010 futures at premium
Turnover soars to a staggering Rs 2.5 lakh crore
Nifty December 2010 futures were at 5,857, at a premium of 57.25 points over spot closing of 5,799.75. Turnover in NSE's futures & options (F&O) segment jumped to Rs 251964.58 crore from Rs 215180.46 crore on Wednesday, 24 November 2010 as traders rolled over positions from the near-month November 2010 series to December 2010 series. The near month November 2010 derivatives contracts expired today, 25 November 2010.
Realty, financials lead decline; breadth weak
The key benchmark indices hit their lowest level in more than two months as the bursting of a bribery scandal by the Central Bureau of Investigation on Wednesday, 24 November 2010, involving officials of some top PSU banks and finance firms hurt sentiment for the second day in a row. Wild intraday swing in share prices was the order of the day as traders rolled over positions in the derivatives segment from the near-month November 2010 series to December 2010 series. The November 2010 futures & options (F&O) contracts expired today, 25 November 2010. The BSE 30-share Sensex lost 141.69 points or 0.73%, off close to 310 points from the day's high and up close to 60 points from the day's low.
Thursday, November 25, 2010
Daily News Roundup - Nov 25 2010
The Central Bureau of Investigation has arrested eight people, including senior executives of banks and housing finance companies like LIC Housing Finance, LIC, Central Bank of India, Bank of India and Punjab National Bank for giving loans to private builders after taking bribes. (BS)
Sensex tumbles as CBI busts housing loan scam
Amar Ambani, Head of Research (India Private Clients), IIFL said "The late afternoon news about CBI raids on housing finance and real estate companies led to a major fall in stock prices of realty, banking and housing finance companies. An already uncertain stock market, grappling with an Ireland collapse globally and domestic issues of 2G scam, microfinance mess and other scams, pared morning gains and the Nifty fell from a high of 5,977 to close at 5,865. It seems like the year 2010 may be remembered as a scam hit year. The market fall came on strong trading volume and turnover, ahead of the F&O expiry on Thursday.
Expiry of Nervous November
If you look at lifeone way, there is always cause for alarm. - Elizabeth Bowen
The nervousness on the street could continue initially followingthe CBI unearthing a multimillion-rupee bribery scam and making a few arrests. Theusual choppiness of expiry day may more or less be there though the Nifty hasalready seen 63% rollover.
Wednesday, November 24, 2010
BSE Bulk Deals to Watch - Nov 24 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
24/11/2010 524412 Aarey Drugs J V STOCK BROKING PRIVATE LIMITED B 38395 32.65
24/11/2010 524412 Aarey Drugs PATEL REKHABEN SANJHAYBHAI B 46440 30.35
NSE Bulk Deals to Watch - Nov 24 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
24-NOV-2010,GLORY,Glory Polyfilms Limited,RAJ FINVEST,BUY,339,9.05,-
24-NOV-2010,GLORY,Glory Polyfilms Limited,TRANS FINANCIAL RESOURCES LTD,BUY,660892,9.23,-
Fake housing loan scam hit markets in late trade
The domestic indices slid after news emerged that CBI conducted several raids in context of the multi crore fake housing loan scandal involving LIC Housing Finance. There was a heavy sell-off in banking and realty stocks.
Major headlines:
Siemens' FY2010 consolidated net profit up 7% YoY.
Murli Industries shoots up on hive-off of cement business.
Mahindra & Mahindra soars on inking pact with Ssangyong.
Market hits two-month low as CBI arrests bank officials on bribery charges
The key benchmark indices tumbled in late trade, with financial and realty stocks witnessing a sharp sell-off on television reports of a multi-crore housing loan scandal. But, news reports after trading hours suggested it was a case of bribery of bank officials for arranging corporate loans. The barometer index BSE Sensex and the 50-unit S&P CNX Nifty settled at their lowest closing levels in more than two months. The Central Bureau of India (CBI) has arrested top officials from some leading PSU banks and public/private financial institutions. The CBI said that the officers of Bank of India, Central bank of India, Punjab National bank and LIC HF were receiving illegal gratification for facilitating loans. Executives at Money Matters Financial Services were also arrested for broking bribery deals.
Grey Market Premiums - Claris Lifesciences, MOIL
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| Power Grid Corporation | 90 (5 % Discount of Retailers & Employee) | 10 to 11 | -- |
| R.P.P. Infra Projects Ltd. | 68 to 75 | 11 to 12 | -- |
| Claries Life science | 278 to 293 | 33 to 35 | 1700 to 1800 |
| Manganese Ore Ltd. | 340 to 375 | 260 to 265 | 2800 to 2900 |
| Shipping Corporation | -- | -- | -- |
| One 97 Communication | - | -- | -- |
Claris Lifesciences IPO Analysis
The Ahmedabad-based Claris Lifesciences, promoted by Arjun S. Handa and Sarjan Financial Private Limited, is one of the largest Indian sterile injectables pharmaceutical companies with presence in 76 countries worldwide. It offers 128 products across multiple markets and therapeutic areas. All of its products are off-patent products, which range across various therapeutic segments, including anesthesia, critical care, anti-infectives, renal care, infusion therapy, enteral nutrition, parental nutrition and oncology. It offers injectables in various delivery systems, such as glass and plastic bottles, vials, ampoules, pre-filled syringes and non-PVC and PVC bags. Its customer base primarily includes government and private hospitals, aid agencies and nursing homes.
Market may remain volatile
Stocks may continue to remain volatile as traders roll over positions in the derivatives segment from the near-month November 2010 series to December 2010 ahead of the expiry of the November 2010 futures & options (F&O) contracts on Thursday, 25 November 2010. The market staged a decent rebound on Tuesday, 23 November 2010 after a 3% intraday slide.
No collateral damage on the Street
"Our best built certainties are but sand-houses and subject to damage from any wind of doubt that blows" - Mark Twain.
The spell of unseasonal rains persists in many parts of the nation, so does the string of bad news (mostly external). WPI inflation, especially food inflation, has moderated lately. But, the untimely showers could do some damage to the harvested kharif crops, potentially pushing up food prices.
Daily News Roundup - Nov 24 2010
JSW Energy has agreed to acquire Canada’s CIC Energy for C$422mn. (ET)
Coal India hopes to acquire a stake in at least one of the Australian mines of Peabody Energy in a few months and is in advanced negotiations with foreign firms for long-term coal import contracts. (ET)
Coal India to acquire Massey Energy, the fourth-largest coal company in the United States, in its entirety. (BS)
Shell shocked Sensex stages smart recovery
The key Indian stock indices managed to stage a smart 'V' shape recovery after reports that South Korea and North Korea had ended shelling on their tense western maritime border.
South Korea's YTN television said two people were injured, several houses were on fire and that shells were still falling on Yeonpyeong island.
Mkts to open flat on mixed Asian cues
Markets are likely to start the session on a flat note following the mixed Asian cues. The market undertone is negative but one needs to be cautious, as volatility is expected ahead of F&O expiry.
Headlines for the day:
MOIL IPO price band fixed at Rs340-375
JSW snaps up Canada firm for C$422 million
Aegis Logistics to invest Rs430 crorein oil terminal projects
Crude ends modestly lower
Prices slip as tensions rise in Korean region
Crude prices ended lower on Tuesday, 23 November 2010 at Nymex. Prices fell as the dollar rose and as political problems cropped up between North and South Korea. Prices also fell as the dollar ended lower.
Precious metals continue to glitter
Prices rise as problems as Korean problems crop up
Precious metals ended higher on Tuesday, 23 November 2010 at Comex. Prices rose as investors got new fodder to worry about as problems once again cropped up between North and South Korea. In addition, European sovereign debt problems persisted increasing the appeal of bullion metals. Prices rose despite a strong dollar.
BSE Bulk Deals to Watch - Nov 23 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
23/11/2010 524412 Aarey Drugs PRATIBHA BHARAT GAJJAR B 35000 29.54
23/11/2010 524412 Aarey Drugs BHARAT KANTILAL GAJJAR B 50000 28.69
23/11/2010 524412 Aarey Drugs BP FINTRADE PRIVATE LIMITED B 42942 29.39
Sensex ends 265.75 points lower on global worries
Indian markets dropped on Tuesday erasing earlier gains. Markets opened in the negative terrain tracking weak global cues like concerns of spillover of Ireland`s debt crisis to other European nations like Portugal and Greece, China`s high inflation and domestic 2G spectrum allocation issues.
NSE Bulk Deals to Watch - Nov 23 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
23-NOV-2010,AMTEKAUTO,AmtekAuto-Roll Sett,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,3187280,146.87,-
23-NOV-2010,AMTEKINDIA,Amtek India Limited,PRADEEP JAIN,BUY,1900000,64.25,-
23-NOV-2010,AMTEKINDIA,Amtek India Limited,SAFFRON FINANCE LIMITED,BUY,700000,64.93,-
23-NOV-2010,AMTEKINDIA,Amtek India Limited,SPS CAPITAL & MONEY MANAGEMENTSERVICES PVT.LTD.,BUY,2534000,64.69,-
Tuesday, November 23, 2010
Power Grid Grey Market Premium - MOIL
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) | Kostak (Rs. 2 Lac Application) |
| Power Grid Corporation | 90 (5 % Discount of Retailers & Employee) | 10 to 11 | -- | -- |
| R.P.P. Infra Projects Ltd. | 68 to 75 | 11 to 12 | -- | -- |
| Claries Life science | 278 to 293 | -- | -- | -- |
| Manganese Ore Ltd. | 600 to 660 (Approx) | 250 to 252 | 2600 to 2700 | 5200 to 5400 |
| Shipping Corporation | -- | -- | -- | -- |
Daily News Roundup - Nov 23 2010
Zensar Technologies to acquire US-based PSI Holdings' unit Akibia for US$66 million. (BL)
Tata Chemicals announced the launch of ‘Paras Farmoola', the country's first ever customised fertiliser product specifically targeted at farmers in western-central Uttar Pradesh. (BL)
Sensex soars on all-round buying...Nifty reclaims 6k
The BSE Sensex surged 371 points to close at 19,956 and the NSE Nifty rose 119 points to close at 6,009.
After comeback, bulls may step back
Success is a lousy teacher. It seduces smart people into thinking they can't lose. -Bill Gates.
The bulls staged a stunning comeback with a ~2% rally in the two main indices. The Irish bailout news coupled with positive FII data helped lift the glum mood amid concerns about simmering political tension. The Supreme Court will hear the PM’s affidavit on the 2G spectrum case today. The all-party meet failed to break the logjam in parliament linked to the highly controversial issue.
Markets may witness a weak start
The Indian markets are expected to open on a negative note as the world markets remain nervous after Moody's said a bailout of Ireland may pose a 'credit negative' for the country
Headlines for the day:
Tata Chemicals enters customised fertiliser biz
Godrej talking to Israeli firms for dairy foray
Jubilant Energy plans $85-million share sale
Crude stays low
Prices slip due to rising dollar
Crude prices ended lower on Monday, 22 November 2010 at Nymex. Prices fell as the dollar rose and on demand concerns.
Market may edge lower on weak Asian stocks
Weak global stocks may pull the market down after Monday's near 2% gains. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate that the Nifty could slide 53.50 points at the opening bell. Asian shares were down Tuesday as investors continued to worry over Europe's debt crisis. Volatility may remain high as traders roll over positions in the derivatives segment from the near-month November 2010 series to December 2010 ahead of the expiry of the November 2010 futures & options (F&O) contracts on Thursday, 25 November 2010.
Monday, November 22, 2010
Nifty regains 6k, Sensex nears 20k
The domestic indices saw a spectacular rally owing to all-round buying and positive global cues, with the Nifty reclaiming 6000 levels and the Sensex nearing 20000 levels
Major headlines
Fertilizer stocks dip as government cuts NBS subsidy
BHEL, GE ink pact for water treatment systems; the stock closes 0.64% up
Zensar Technologies to acquire US companies; the stock ends higher by 2.44%
Nifty November 2010 futures above 6,000
Turnover declines
Nifty November 2010 futures were at 6,010, matching the spot closing of 6010. Nifty December 2010 futures were at 6038, at a premium of 28 points over spot closing of 6010.
Power Grid Corporation trips ahead of listing of new shares
Power Grid Corporation of India lost 2.13% to Rs 99 at 12:38 IST on BSE, as shares allotted in its recently completed follow-on public offer will soon hit the market.
The new shares allotted to the public will be admitted to trading from Friday, 26 November 2010, as per reports.
India Market NSE BSE Trading Holidays - 2011
S No Date Day Description
1 26-Jan-11 Wednesday Republic Day
2 02-Mar-11 Wednesday Mahashivratri
3 12-Apr-11 Tuesday Ram Navmi
4 14-Apr-11 Thursday Dr. Ambedkar Jayanti
5 22-Apr-11 Friday Good Friday
6 15-Aug-11 Monday Independence Day
7 31-Aug-11 Wednesday Ramzan ID
8 01-Sep-11 Thursday Ganesh Chaturthi
9 06-Oct-11 Thursday Dasara
10 26-Oct-11 Wednesday Laxmi Puja*
11 27-Oct-11 Thursday Diwali - Balipratipada
12 07-Nov-11 Monday Bakri Id
13 10-Nov-11 Thursday Gurunanak Jayanti
BSE Bulk Deals to Watch - Nov 22 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
22/11/2010 524412 Aarey Drugs YOGESH ROSHANLAL GUPTA B 42000 25.70
22/11/2010 532282 Amtek India SEAHAVEN INVESTMENTS MAURITIUS LIMITED B 650000 65.00
NSE Bulk Deals to Watch - Nov 22 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
22-NOV-2010,AMTEKAUTO,AmtekAuto-Roll Sett,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,3760000,146.39,-
22-NOV-2010,AMTEKINDIA,Amtek India Limited,SADHANA STOCKS & SECURITIES PVT LTD,BUY,1000000,64.59,-
Asian markets mostly up on Monday
Ireland to accept financial rescue package, Chinese inflation control measures continue to keep worries afloat though
Asian markets mostly ended mostly on a strong note as the investors eyed reports that Ireland has capitulated to international demands to accept financial rescue package. After an emergency Cabinet meeting in Dublin, the country has formally asked for a rescue package from the European Union and the International Monetary Fund. Though this was very much on the cards, it still represented a U-turn by Ireland, which insisted last week that it needed no bailout. The Asian equities started on an upbeat tone following this news and were aided by firm commodity prices in the early trades on Monday morning. However, the sentiments seemed to have turned around as the day proceeded and investors were seen taking some profits as the enthusiasm spilled by Irish bailout hopes waned by the latest round of monetary tightening in China. In US, Stocks eked out steady gains on Friday, as traders remained optimistic about the likelihood of Ireland accepting bailout funds from the European Union and the International Monetary Fund. The Dow added 22.10 points or 0.2 percent to close at 11,203.33.
Nifty regains 6,000 mark
Trading for the week began on an upbeat note, with share prices bouncing back from two-month lows tracking firm global stocks. The strong buying momentum helped the 50-unit S&P CNX Nifty regain the psychological 6,000 mark. All the sectoral indices on the BSE were in positive zone. Banking, consumer durables and IT stocks led the rally. Capital goods and healthcare stocks lagged the rally. The BSE 30-share Sensex jumped 372.15 points or 1.9%, up 316 points from the day's low and off 31 points from the day's high.
MOIL Grey Market Premium - Power Grid
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| Power Grid Corporation | 90 (5 % Discount of Retailers & Employee) | 10 to 11 | 3400 to 3500 |
| R.P.P. Infra Projects Ltd. | 68 to 75 | 8.50 to 9.50 | 1400 to 1500 |
| Manganese Ore Ltd. | 600 to 660 (Approx) | 250 to 252 | 2600 to 2700 |
Market may recover
Gains in Asian stocks will help Indian stocks recoup some of the last week's steep losses. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate that the Nifty could gain 40 points at the opening bell. Volatility may remain high as traders roll over positions in the derivatives segment from the near-month November 2010 series to December 2010 ahead of the expiry of the November 2010 futures & options (F&O) contracts on Thursday, 25 November 2010.
Indian stocks likely to open steady
The markets may have a gap-up start following the positive Asian cues. The market may remain sideways and rangebound ahead of F&O expiry this week.
Headlines for the day:
R-Power, Lanco among 7 cos for NTPC solar plants
SEBI plans to cut IPO process time to 7 days
Steel companies to jointly acquire assets abroad
Daily News Roundup - Nov 22 2010
Suzlon is in the race to bag an estimated Rs3bn project of Nalco. (BS)
Reliance Industries says it has restarted crude distillation unit no.1 and coker unit at the Jamnagar refinery complex. (BL)
Petroleum ministry says it will consider approval for the US$8.5bn Cairn-Vedanta deal only after Cairn Energy makes a formal application for transfer of control in all its 10 properties in the country. (BS)
Nifty slips for 3rd straight day...ends below 6000
The Indian market extended its losing streak to the third straight trading session as heavy selling across the board dragged the NSE Nifty below the 6000 levels. Today's selling was led by Realty, Oil & Gas and Consumer Durables stocks. The broader indices also came under immense selling pressure.
Fine to begin with
Everything's fine today, that is our illusion. - Voltaire.
We expect a firm opening and perhaps a much better day for the bulls. Any rumor of the Prime Minister resigning remains just the imagination of a few. The fact that FIIs and local funds were net buyers on Friday could prop up the sagging spirits.
Educomp Solutions
Investors with a two-year horizon can buy the shares of Educomp Solutions, a leading player in the school education space.
Continuing strength in its high-margin SmartClass business, selective participation in pure hardware deals and increasing visibility in its pre-school and K-12 segments are key positives for the company.
US stocks eke out little gains after early drop
Stocks end near the unchanged mark for the week
US stocks ended near the unchanged mark for the week that ended on Friday, 19 November 2010. While the Ireland story remained the headliner for the week, traders also remained focused regarding latest developments from China where the country was expected to take active steps to curb inflation. Economic reports for the week checked in mixed in nature. New IPO from General Motors was another event for the week.
Kingfisher Airlines
Like its peers in the Indian aviation space, Kingfisher Airlines has been able to show improvement in performance metrics over the past few quarters, aided by an uptick in demand for air travel in the country. Also, the company has been taking steps towards running a tight ship and has received preliminary approvals pertaining to the debt restructuring plan, which, when it comes through, should ease some pressure arising from its bloated leverage.
Exide Industries
Investors with a two-to-three-year perspective can invest in Exide Industries. Robust demand for automotive batteries, capacity expansions, limited exposure to the telecom batteries segment and increased sourcing of raw material from captive units signal good earnings prospects over the given time-frame.
RPP Infra Projects IPO Review
Investors can avoid the Initial Public Offer of RPP Infraprojects, a South-based construction contractor, given the high asking price relative to peers. The company does not have any distinguishing business model to command a premium to peers. In magnitude of order book and revenues, it lags well behind listed construction peers. Given its small-sized business, the execution risks in its efforts to scale up to a developer may be significantly higher. At the upper end of its price band of Rs 68-75, the offer is valued at 13 times the estimated FY-11 earnings. Peers such as Unity Infraprojects, Pratibha Industries and ARSS Infrastructure are available at valuations of 8 to 13 times trailing 12- month earnings. Other detracting factors include geographic concentration of the order book and stiff competition in other states.
Crude drops
Prices slip due to demand concerns from China
Crude prices ended lower on Friday, 19 November 2010 at Nymex. Prices fell following news that China's central increased the reserve requirement for its banks by 50 basis points for the second time in as many weeks. The announcement was not that surprising since speculation has been building that China might tighten policy to fend off inflation. Still, there was concern that tighter policy could slow growth.
Sunday, November 21, 2010
Volatility may remain high ahead of F&O expiry
Year-end profit taking may continue to weigh on the domestic bourses in the near term. Volatility may rise over the next few days as traders roll over positions in the derivatives segment from the near-month November 2010 series to December 2010 ahead of the expiry of the November 2010 futures & options (F&O) contracts on Thursday, 25 November 2010.
China hikes reserve requirement ratio by 50 bps
The People's Bank of China (PBOC) announced that it would increase the banks' reserve requirement ratio by 50 basis points (bps) effective November 29 to strengthen liquidity management and control credit distribution. This was the fifth increase in the reserve ratio by the Chinese central bank. China's official reserve requirement ratio for most banks will rise to 18.5% from Nov. 29. The reserve ratio may vary among banks. The move comes after China's consumer price index (CPI) rose 4.4% in October from a year earlier, its fastest pace in two years. The PBOC last raised banks' reserve requirement ratio by half a percentage point on Nov. 10 as part of its efforts to tighten liquidity. This followed a combined interest rate and reserve requirement hike in September.
OECD cuts growth forecasts for industrialised world
The global economic recovery is losing momentum as the US economy has nearly stalled while growth in emerging countries is also moderating, the Organisation for Economic Co-operation and Development (OECD) said. In its twice-yearly report, the Paris-based agency said that several factors suggested that its outlook might be downgraded further, citing among others global currency tensions and a possible debt crisis in Europe. The OECD, in its latest economic outlook, said it now expects GDP across its member nations to expand by 2.3% in 2011 and 2.8% in 2012. Earlier this year, the OECD forecast 2011 growth of 2.8%.
Dabur India acquires Namaste Labs
Dabur India Ltd. announced that its wholly owned subsidiary Dermoviva Skin Essentials, USA has entered into Unit Purchase Agreement to acquire 100% membership units in leading personal care Namaste Group Companies viz - Namaste Laboratories LLC, USA and its three subsidiaries for total consideration of US$100mn. The transaction is subject to customary conditions, including regulatory reviews and approvals and is expected to close by the end of the 2010 calendar year. The current management team, led by Namaste founder and CEO Gary Gardner, will continue to run the operations of the Namaste business. The sales team, including broker representatives, will remain in place, and existing relationships with retailers, wholesalers, distributors and suppliers will not change. Namaste will continue to operate in its current facility in Blue Island, IL, with business as usual and without interruption.
Vedanta gets US$6bn for Cairn India acquisition
Vedanta Resources Plc announced that it has entered into financing agreements for US$6bn with a consortium of leading banks to fund the Vedanta Group's proposed acquisition of 51-60% of Cairn India Ltd. for an aggregate consideration of approximately US$8.5bn to US$9.6bn. Vedanta proposes to acquire 31%-40% and Vedanta's subsidiary Sesa Goa Ltd. will acquire a 20% stake in Cairn India. Anil Agarwal, Chairman of Vedanta Resources plc, said, "The financing announced provides the group with funding flexibility. We are delighted to announce US$6 billion of commitments from leading international banks, a testament to the strength of the Vedanta story."
GSM operators add nearly 15mn new subscribers in Oct
India's GSM telecom operators (excluding RCOM and Tata Tele) added close to 15 million new subscribers in October with the total base crossing the 500mn milestone, data released by the Cellular Operators Association of India (COAI) showed. The telecos offering GSM services saw their base increase by 14.69mn new users last month as against the addition of 12.42mn new users in the previous month, the COAI data showed. With this, the overall GSM subscriber base now stands at 508.73mn versus 494.04mn at the end of September.
Bharti Airtel added the most number of new users in October at 3mn, followed by Vodafone Essar with 2.48mn, according to the COAI data. State-run BSNL and new entrant Uninor added 2.48mn new subscribers in the month under review. Idea Cellular added 1.81mn new users in October while Videocon and Aircel saw their customer base increase by 1mn new users. Bharti Airtel now has the most number of subscribers at 146.29mn followed by Vodafone at 118.04mn. Idea has a total customer base of 76.02mn, and BSNL has more than 75mn customers.
Food inflation drops sharply in early November
India's food inflation fell sharply in the first week of November but remained above the double-digit mark and non-food inflation increased, data released by the Government showed. Annual inflation in the Food Articles space stood at 10.3% in the week ended November 6 as against 12.3% in the previous week, the Commerce & Industry Ministry said. It was at 13.99% in the comparable period last year. The WPI for the Food Articles group declined by 0.6% to 178.8. Inflation in the Primary Articles group stood at 13.3% in the week under review versus 14.87% in the week ended October 30, the Commerce Ministry said. It was at 12.17% in the week ended November 7, 2009. The index for this major group declined by 0.1% to 180.6 from 180.8 in the previous week.
OECD sees more sustainable growth for India
India will return to a more sustainable pace of growth as a sharp rebound in agricultural output slows, the Organisation for Economic Cooperation and Development (OECD) said. India has avoided an inflationary spiral due to slowing gains in food prices the Paris-based agency said in its twice-yearly outlook report. Still, the RBI needs to tighten monetary policy further because fuel prices remain high, credit demand is strong and capacity is scarce, it added. Strong business investment and personal consumption will support the Indian economy, which is projected to expand 8% next year and 8.5% in 2012, according to the OECD. Economies in the Asia-Pacific region will continue to recover in the next two years thanks to solid domestic demand and exports, but many countries need higher interest rates to counter inflation, the OECD said.
Capital is flowing to emerging economies in the region because their growth prospects are better than those of major economies, leading some countries to intervene in the currency market or introduce capital controls, it said. A certain amount of appreciation in Asia-Pacific currencies would help correct economic imbalances, and countries should refrain from currency intervention as it could encourage protectionism, the OECD said. "The challenge for most monetary authorities will be to exit from exceptional stimulus in a way consistent with macroeconomic developments," the OECD said. "Some countries have been reacting to capital inflows through unilateral measures. Protracted unilateral action of this sort is likely to have little or even counterproductive effects."
TRAI cracks the whip on errant telcos
The Telecom Regulatory Authority of India (TRAI) recommended cancellation of 69 licences of six telecom operators for non-compliance of the rollout obligations. The companies under the scanner are Etisalat DB (earlier Swan) that has failed to roll out services in 15 circles, Videocon Communications (earlier Datacom Solutions) in 10 circles, Uninor (Unitech-Telenor JV) in 8 circles, Loop Telecom (earlier Shipping Stop Dot Com) in 20 circles, Sistema-Shyam in 11 circles and Aircel in 5 circles. Uninor, Sistema-Shyam and Loop Telecom claimed they had complied with the network rollout obligations and so far had not received any notice from either the Government or TRAI.
Weekly Stock Picks - Nov 21 2010
Buy BGR Energy
Buy Titagarh Wagons
Buy GE Ship
Buy Rolta
Buy United Phos
Weekly Stock Newsletter - Nov 21 2010
Bad news appears to be outweighing the good news these days, with the market tanking in the past two weeks after reaching within striking distance of the all-time highs on Diwali. The rising political temperature over the 2G spectrum scam, fiscal troubles in Ireland and China's monetary tightening have combined to dent investor confidence in recent days. The slowing FII inflows are also not helping either.
2G scam...SC asks Govt to file affidavit on PM's behalf
The Supreme Court asked the UPA government to file an affidavit by Saturday on behalf of the Prime Minister explaining why Dr. Manmohan Singh he took close to a year to respond to a request for the prosecution of former Telecom Minister A Raja for allegedly committing various impropriety in the allocation of new 2G spectrum licences in early 2008. A bench comprising Justices G S Singhvi and A K Ganguly granted time to the Centre to file the affidavit after Solicitor General Gopal Subramanium said that he was in a position to place before it the entire record on the issue.
Saturday, November 20, 2010
Friday, November 19, 2010
Grey Market Premiums - Nov 19 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| Power Grid Corporation | 90 (5 % Discount of Retailers & Employee) | -- | 3200 to 3400 |
| R.P.P. Infra Projects Ltd. | 68 to 75 | 10 to 11 | 1800 to 1900 |
| Manganese Ore Ltd. | 600 to 660 (Approx) | 285 to 290 | 3400 to 3500 |
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