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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.
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