Monday, August 23, 2010
CRISIL has assigned a CRISIL IPO grade of "4/5" (pronounced "four on
five") to the proposed initial public offer (IPO) of Gujarat Pipavav
Port Ltd (GPPL). This grade indicates that the fundamentals of the IPO
are above average relative to the other listed equity securities in
India. However, this grade is not an opinion on whether the issue
price is appropriate in relation to the issue fundamentals. The grade
is not a recommendation to buy / sell or hold the graded instrument,
or a comment on the graded instrument’s future market price or its
suitability for a particular investor.
Markets mostly end lower on global growth worries
Asian stock markets continued to back off today, extending their recent spree of losses as the worries about a fragile global economy resurfaced yet again. The markets ended mostly lower with the US dollar continuing to witness steady safe haven buying and keeping the risky assets in check. The global stocks took a hit on Friday after calls by a European Central Bank official for more economic aid indicated the region's deficit crisis may take longer to solve. The US dollar rose to a fresh six week high thereafter and commodity prices slipped.
Receives bids for 26.95 lakh shares
The initial public offer of Gujarat Pipavav Port got muted investor response on the first day of the issue today, 23 August 2010. The IPO garnered bids for 26.95 lakh shares, compared with 11.04 crore shares on offer.
The key benchmark eked out tiny gains, with some stocks witnessing a sharp rally. Volatility was high as traders rolled over positions in derivatives segment from the August 2010 series to the September 2010 series ahead of the expiry of the near-month August 2010 contracts this Thursday, 26 August 2010. European stocks and US index futures rose while Asian stocks ended lower.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
23/8/2010 513335 Ahmednagar Forg OLYMPIA BUILDERS PVT LTD B 202284 123.10
23/8/2010 532664 Amar Remedies ASHOKA FINSTOCK LTD B 155992 100.77
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
23-AUG-2010,AMAR,Amar Remedies Limited,ASHOKA FINSTOCK LTD,BUY,278709,102.48,-
23-AUG-2010,BANKRAJAS,Bank Of Rajasthan Ltd,DEUTSCHE SECUTIRITES MAU LTD,BUY,841280,210.65,-
According to media reports, many private life insurers fear sales may come to a standstill in early September, as they do not yet have in place products that are compliant with new guidelines for unit-linked insurance plans (ULIPs) that come into force next month. At the same time, marketing by some unscrupulous agents has reached fever pitch as they push existing high commission policies, which will become non-compliant from next month, by positioning them as a limited period offer
The market is likely to open little changed with lack of clear direction from global markets. Asian markets were trading mixed. Trading of the S&P CNX Nifty futures on the Singapore stock exchange indicated that the Nifty could rise 5 points at the opening bell.
"What we plant in the soil of contemplation, we shall reap in the harvest of action" – Meister Eckhart
Its harvest festival down south and investors too seem to be reaping. Yes, the gains on the bourses have been bountiful even as global markets continue to remain shaky. The question now is can the Nifty break past the 5500 level convincingly.
Maruti Suzuki is mulling limiting exports to 15% of its total output to meet requirements within the country. (BS)
TCS opens its fifth delivery centre in China to cater to the Asia-Pacific market. (BS)
ABB opens a wind power generator factory in Vadodara, fourth such plant in India. (BS)
The Indian markets ended on a dull note on Friday amid choppy trades. The FMCG, IT and select Telecom stocks were under pressure. While, the Realty, Capital Goods and Oil & Gas stocks were among the major gainers. The BSE Small-Cap index ended with slight losses while, the BSE Mid-cap index added 0.2%.
Economic data play the spoilsport in a week when earnings do not disappoint much
US stocks registered losses for the second consecutive week that ended on Friday, 20 August 2010. The major averages began the week on a strong note. However, U.S. equity markets could not hold their gains for the week, and the culprit once again was U.S. economic data. A resurgence in deal activity to the highest levels since late 2009 contrasted with persistent reminders of the struggling global economic recovery.
Investors with a medium-term perspective can consider buying the stock of Geodesic (Rs 103.6). The stock has been on an intermediate-term downtrend from its September 2009 peak of Rs 158, forming lower peaks and lower troughs.
Strong dollar hammers prices
Bullion metal prices ended lower on Friday, 20 August 2010 at Comex. Dec gold futures shed 0.5% to finish at $1228.80 per ounce, while Sept silver dropped 2% to end at $17.99 per ounce. Strength in the dollar index weighed on both precious metals.
Gold gained 1% for the week while silver shed 0.6%.
In the currency market on Friday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by 0.8%.
Prices drop for third straight day
Crude prices dropped on Friday, 20 August 2010. October crude oil futures finished lower by 1.3% to $73.85 per barrel. Crude was once again marred by strong dollar concerns about the economy and finished the session in the red for the third consecutive day and for the eighth session in 9 days. Oil lost 2.6% for the week.