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Friday, September 30, 2011
Warren Buffet says US won't go back into recession
Warren Buffett said on Friday he is still eager to buy companies and stocks, even as his conglomerate Berkshire Hathaway launches its first-ever share buyback program.
Buffett, in a CNBC interview, said the repurchases will not stop the company from making acquisitions or spending on infrastructure for its portfolio of companies.
Read more
BSE Bulk Deals to Watch - Sep 30 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
30/9/2011 505665 ABC Bearings-$ ANIL KUMAR GOEL S 90000 108.00
30/9/2011 533270 Bedmutha Inds EQUILINKCAPITALMANAGEMENTSERVICESLIMITED B 150000 108.25
30/9/2011 533270 Bedmutha Inds MEENA KISHORE PATKI S 150000 108.25
NSE Bulk Deals to Watch - Sep 30 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
30-SEP-2011,AMTEKINDIA,Amtek India Limited,V P PATEL,BUY,735000,136.58,-
30-SEP-2011,DEWANHOUS,Dewan Housing Fin Corp,SILICON FIRST REALTORS PRIVATE LIMITED,BUY,672286,231.72,-
30-SEP-2011,EASUNREYRL,Easun Reyrolle Relays,SOWRAJ INVESTMENTS PVT.LTD,BUY,228000,72.04,-
30-SEP-2011,GTL,GTL Limited,TRANSGLOBAL SECURITIES LTD.,BUY,586514,59.98,-
ADAG, Metals play spoilsport; Sensex ends 244 points lower
Negative news on the domestic front and weak global cues dragged the markets lower today. The Sensex lost 244 points and the Nifty slipped 72 points
Major headlines
Cabinet approves new Mining Bill; Coal India, Tata Steel drop
RBI approves Reliance Capital’s stake sale in life insurance unit
CBI probes Anil Ambani in 2G scam; ADAG stocks fall
Bharti tower unit IPO unlikely this fiscal year
TTK Prestige rises on buzz of buying Italian firm
Auto, cement shares will be in focus on monthly sales data
Auto and cement shares will be in focus next week as companies from these two sectors start unveiling monthly sales data for September 2011. Cement sales is likely to pick up as monsoon withdraws. On the other hand, higher interest rates and recent petrol price hike is expected to adversely impact sales of cars and two-wheelers during the festive season. The timing of the latest petrol price hike has been bad for auto firms. The festive season started early this month and it will last until Diwali, the festival of lights, at the end of October 2011. Sales normally pick up during the festive season every year.
BSE Small-Cap, Mid-Cap indices slide
Key benchmark indices edged higher in volatile trade, buoyed by European policy makers' efforts to support European countries struggling with debt. Good monsoon rains also aided sentiment. Fears of muted-to-weak Q2 September 2011 corporate earnings capped gains. The market declined in three out of five trading sessions during the week.
Stocks were volatile as traders rolled over positions in the futures & options (F&O) segment from September 2011 series to October 2011 series. The September 2011 derivatives contracts expired on Thursday, 29 September 2011.
Sensex off 12.7% in Q2 on euro-zone debt worries
Key benchmark indices slumped during the second half of the trading session as world stocks fell on concerns European leaders won't move as quickly as hoped to take additional steps to contain the ongoing debt crisis in the euro zone. Likely muted-to-weak Q2 September 2011 corporate earnings also weighed on sentiment as the 50-unit S&P CNX Nifty below the psychological 5,000 mark, a day after regaining that level on Thursday, 29 September 2011. The barometer index BSE Sensex lost 244.31 points or 1.46%, off 291.40 points from the day's high and up 48.98 points from the day's low. The market breadth was weak.
Mixed finish for bullions
Gold ends mildly lower while silver climbs up
Precious metals ended mixed on Thursday, 29 September 2011 at Comex. Yellow metal prices dropped after oscillating between red and green for the entire day. Prices remained a bit volatile after dollar slipped and the German parliament earlier Thursday voted overwhelmingly to increase the size and flexibility of the euro-zone rescue fund.
Thursday, September 29, 2011
BSE Bulk Deals to Watch - Sep 29 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
29/9/2011 512161 8K Miles Software THAORLAL ATMARAM MODI S 68710 49.49
29/9/2011 512161 8K Miles Software SURANA GULAB CHAND PUKHRAJ S 36761 47.74
29/9/2011 522292 CHANDNI TE AILISH TRADERS PRIVATE LIMITED S 1000000 1.21
NSE Bulk Deals to Watch - Sep 29 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
29-SEP-2011,EDUCOMP,Educomp Solutions Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,527779,232.17,-
29-SEP-2011,GTL,GTL Limited,GENUINE STOCK BROKERS PVT LTD,BUY,518337,56.60,-
29-SEP-2011,KSOILS,K S Oils Limited,VASANTI SHARE BROKERS LIMITED,BUY,2595025,9.84,-
29-SEP-2011,PGEL,PG Electroplast Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,135203,347.33,-
29-SEP-2011,PGEL,PG Electroplast Ltd,ALFA FISCAL SERVICES PVT LTD,BUY,333543,335.35,-
29-SEP-2011,PGEL,PG Electroplast Ltd,BRIJESHWAR PATEL,BUY,84953,348.01,-
Smart rally on F&O expiry day; Sensex up 252 pts at close
The Indian markets witnessed smart gains at the close on the F&O expiry day. The Sensex rose 252 points and the Nifty gained 70 points.
Major headlines
Food inflation at 9.13% versus 8.84%
German parliament passes expanded euro fund
Sterling Holiday up 10% on stake buy by Jhunjhunwala, Damani
Educomp surges as Citigroup purchases stake
Bharti Airtel enters into deal with Nokia Siemens
Sun TV slumps on buzz CBI set to file FIR against Maran brothers
Sun TV Network tumbled 6.01% to Rs 247 at 15:30 IST on BSE on reports the Central Bureau of Investigation is set to file FIR against former telecom minister Dayanidhi Maran and his brother Kalanithi Maran for their role in the Aircel case.
Market settles at highest level in more than a week
Key benchmark indices attained their highest closing level in more than a week, supported by firm global stocks and higher US index futures. Reports came just as trading ended in India that Germany's parliament has approved a package of measures enhancing the lending power and flexibility of the euro-zone bailout fund, the European Financial Stability Facility, by a thumping majority. The 50-unit S&P CNX Nifty regained the psychological 5,000 mark. The barometer index BSE Sensex jumped 252.05 points or 1.53%, up close to 380 points from the day's low and off about 60 points from the day's high. The market breadth was negative. The BSE Small-Cap and Mid-Cap indices edged lower.
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BSE Bulk Deals to Watch - Sep 29 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
28/9/2011 517356 ACI Infocom BARRY MERCANTILE PRIVATE LIMITED B 197700 54.05
28/9/2011 517356 ACI Infocom SANJAY AGARWAL HUF S 170000 54.05
28/9/2011 531686 Advik Lab VINEET SINHA B 78257 5.06
NSE Bulk Deals to Watch - Sep 29 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
28-SEP-2011,EDUCOMP,Educomp Solutions Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,628330,228.86,-
28-SEP-2011,EXCELCROP,Excel Crop Care Limited,MITESH N MEHTA,BUY,60000,163.39,-
28-SEP-2011,GRAVITA,Gravita India Limited,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,81009,413.40,-
Wednesday, September 28, 2011
Flexituff International IPO Analysis
Flexituff International (FIL) promoted by Kalani Industries Pvt. Ltd., Miscellani Global Pvt. Ltd. and Sanovi Trading Pvt. Ltd., is a multi-product company engaged in the business of manufacturing polymer products like flexible intermediate bulk containers (FIBC), reverse printed BOPP woven bags, special PP bags and leno bags, geo-textile fabrics and cround covers. These products are manufactured at three manufacturing units located in Pithampur (Madhya Pradesh) and Kashipur (Uttrakhand). It has a current capacity of 48,500 million tones (m) and proposes to expand the same to 70,311 mt by next fiscal.
Taksheel Solutions IPO Analysis
Taksheel Solutions was incorporated on 23 September 1999 as IBSS Techno-Park Private Limited in Hyderabad, Andhra Pradesh, under the Companies Act, 1956. The name was changed to Taksheel Solutions Private Limited on 29 November 2006. The company was converted into public limited company in December 2006. It is engaged in the business of providing information technology services to wealth management service providers.
In 2007, Taksheel acquired clients of Dataformix Technologies Inc., which enabled it to establish its foothold in the data warehousing & business intelligence business. In 2009, Taksheel acquired telecom software products from Verisoft Business Solutions Pvt. Ltd. Taksheel has acquired products in IP multimedia system (IMS), telecom signalling integrated standard digital network (ISDN), channel associated signalling (CAS), signalling system 7(SS7), short message service centre (SMSCs), least cost routing system (LCR), optimal routing solutions (ORS), voice mail servers (VMS) and other value added services (VAS) content delivery platforms.
M and B Switchgears IPO Analysis
M and B Switchgears (MBSL), promoted by Shyam Sunder Mundra, Vikalp Mundra and Anurag Mundra, is engaged in manufacture of transformers upto 25 MVA capacity at 132 KV class and automatic voltage controllers. The company plans to diversify into solar power generation by setting up a 2 MWp grid connected solar power project in Madhya Pradesh.
Currently the product portfolio of the company comprise transformers for varied applications such as Power & distribution transformers, Rectifier Transformers, Furnace Duty Transformers [Arc Furnace & Induction Furnace], Dry type transformers, automatic voltage regulators, converter duty transformers, Fire Proof transformers and Special purpose transformers.
The company's transformer plant is in Indore, Madhya Pradesh. Currently the annual production capacity of transformers in terms of KVA is 900000 KVA per annum (or 75,000 KVA per month) on single shift basis. The transformer business of the company accounted for 72.14%, 65.47%, 94.91%, 88.10% and 90.05% of its total sales revenue for the last five fiscals 2007, 2008, 2009, 2010 and 2011 respectively.
The 2 MWp Solar power project of the company is based on PV Cells technology and is coming up at Rajghar District of Madhya Pradesh which has a solar radiation of 5.8-5.5 Kwh/sqm/day which is ideal for solar power generation. The company has roped in Tata BP Solar India as its turnkey contractor for commissioning of its solar power project. This project funded through internal accruals and a term loan from banks is expected to commence power generation by August/September 2011.
In addition the company is planning to set up additional 4 MWp solar power project. On commencing operation this 4 MWp solar power project is expected to generate 6.656 million units of power at 19% plant load factor (PLF). The company proposes to assign the execution job excluding the land development, civil works and evacuation infrastructure to TATA BP Solar. The company has already spent Rs 37.43 crore on acquisition of land and advance for plant and machinery largely funded by unsecured inter corporate deposits. The project is expected to commence supply of power by March 2012.
The company proposes to raise Rs 90-93 crore from the IPO, of which about Rs 71.36 crore will be used to fund its 4MWp solar power project at Rajghar District of Madhya Pradesh and balance for general corporate purposes. The company has taken a bridge loan by way of unsecured corporate deposit from third parties to fund the proposed 4 MWp solar power project and this will be repaid out of the proceeds of the issue.
Strengths
The promoters of the company are in the business of manufacturing transformers for more than 62 years and are preferred and regular suppliers of quality transformers to SEBs etc. Many of the clients of the company are renowned SEBs/Government controlled utility company/Public Sector Undertakings (PSU's). The company is not dependent on any one industry or sector as it cater to sectors like power, steel, textile, coal and mine, infrastructure, engineering and automobile, etc. and within each of these sectors it has diversity of clients.
Unlike other renewable sources such as wind, small/mine hydel etc the yearly variance in solar power is marginal and thus the cash flow variance will be lower.
Relatively low gestation period for solar power projects unlike other forms of power generation.
Weaknesses
The company's transformer business is small and lacks economies of scale. Moreover the lower KVA transformers typically command lower margin compared to higher KVA transformers due to highly fragmented and severe competition, given low technology barriers in this segment.
High working capital intensity of operations arising out of high debtor days resulting in negative fund flow from operations over the last two years. SEBs/state utilities account for about 54.6% of revenues in FY11 and about 35% of revenues in FY10. Given the precarious financial position of most state power distribution utilities, the working capital cycle may further get elongated affecting cash flows and profitability of the company.
Solar power project, being highly capital intensive, are not viable in the absence of subsidized feed-in tariffs or other financial incentives like revenue through sale of Renewable Energy Certificates (REC), CDM etc. The company is yet to get the registration for REC. Also, REC trading in India is at nascent stage. So, this brings lot of regulatory and market risks to potential REC revenues of the company. Moreover the technology for manufacturing solar photovoltaic cells is still evolving and therefore carries the risk of obsolescence.
CERC has prescribed a band of Rs 12000 to Rs 17000/- per REC. This wide price band may give volatility in Company's solar power revenue stream. However, the validity of the REC is only for a period of 365 days from the date of issue, hence the company may be obligated to sell the RECs at the lowest price of the price band or it may even not be able to sell its entitlement fully during its validity period. Further, the CERC has scaled down the REC price band for the period April 2012 to March 2017 to Rs 9300 to Rs 13400. This reduction in the REC prices which, comes into effect from April 2012 would effect the company's profit and there is no assurance that the price band would not be revised further to company's disadvantage.
The company is yet to sign power purchase/offtake agreement for both the 2 MWp power project, which is under execution and the proposed 4 MWp.
The promoter were directors/ promoters of companies i.e. Indore Transformers, C. S. Steels, Geeta Electricals Indore and Agartala Electricals LLP which are engaged in similar line of business of the company i.e. manufacture, repair and sale of transformers. Since the company has not yet entered into any non compete agreement with these firms, there can be conflict of interest.
Valuation
The company registered sales of Rs 34.49 crore for the fiscal ended March 2011, representing a fall of 4%. The net profit for the same period was down by 16% to Rs 77 lakh. The EPS works out to Re 0.4 on post-IPO equity. The price earning ratio at the offer price band of Rs 180-186 stands at 450-465!
The average cost of acquisition of Equity shares for the three promoters i.e. Shyamsunder Mundra, Vikalp Mundra and Anurag Mundra is Rs 2.18, Rs 4.07and Rs 7.74 respectively.
The well established transformer players such as Voltamp and Transformers & Rectifiers are available at a PE of 9.8 and 6.9 times respectively. Even the renewable energy player Orient Green Power quotes at a PE of 62.7 times its consolidated FY11 EPS.
Sensex slides for fifth time in six days on concerns about Q2 earnings
Key benchmark indices edged lower amid intraday volatility as traders rolled over positions in the derivatives segment from the near-month September 2011 series to October 2011 series ahead of the expiry of September 2011 futures & options (F&O) contracts tomorrow, 29 September 2011. The barometer index BSE Sensex was down 78.01 points or 0.47%, up close to 80 points from the day's low and off about 220 points from the day's high. The market breadth, indicating the overall health of the market, was weak. Likely muted-to-weak Q2 September 2011 corporate earnings weighed on sentiment as the Sensex fell for the fifth time in the last six trading sessions.
Sensex closes 78 points lower on profit booking
Profit booking was the main reason behind today’s fall as the markets had rallied quite sharply yesterday. The Sensex fell 78 points and the Nifty slid 25 points
Major headlines
Excel Crop gains on hopes of SC removing export ban
NTPC signs Rs23.41 billion loan pact
India needs to bring down fiscal deficit: Basu
Indian economy will continue to grow: Pratibha Patil
Indian court rules against Tata in Singur land case
Daily News Roundup - Sep 28 2011
JSW Steel threatened to trigger a price spiral following a crunch in iron ore supply which might force it to shut its showcase 10mt per annum Vijaynagar plant in Karnataka. (BS)
GlaxoSmithKline global CEO Andrew Witty said the company has a war chest of US$1-2bn to support its expansion plans in India. (BS)
GMR Infrastructure said it won a Rs72bn project for widening the 555-km Kishangarh-Udaipur-Ahmedabad highway, from four to six lanes. (BS)
Calm down!
If you can attain repose and calm, believe that you have seized happiness. - Julie-Jeanne.
The market seems to have provided the much needed upturn as Navratri celebrations begin. A smart recovery on Monday and a stellar rally on Tuesday could be followed by a choppy day ahead of tomorrow’s F&O expiry. The start is likely to be sluggish due to indecisive Asian markets. US indices also closed off day’s highs. Multiple resistance levels are placed in the zone of 4990-5030 and the rally can be sustainable if the Nifty closes above 5030.
Copper rises substantially higher
Prices rise on speculation investors were buying the metal
Copper prices at Comex followed other commodities and ended substantially higher on Tuesday, 27 September 2011. Copper rebounded in New York on speculation investors were buying the metal, used in tubing and wiring, to close out bets on lower prices. Prices also rose following the improved sentiment that came amid reports that officials in Europe are planning to shore up the region's fiscal and financial problems. A weak dollar also pushed up metal prices.
Copper rises substantially higher
Prices rise on speculation investors were buying the metal
Copper prices at Comex followed other commodities and ended substantially higher on Tuesday, 27 September 2011. Copper rebounded in New York on speculation investors were buying the metal, used in tubing and wiring, to close out bets on lower prices. Prices also rose following the improved sentiment that came amid reports that officials in Europe are planning to shore up the region's fiscal and financial problems. A weak dollar also pushed up metal prices.
Crude takes a big leap
Prices soar as overall sentiment improves following positive economic data and weak dollar
Crude prices ended substantially higher on Tuesday, 27 September, 2011 at Nymex. Prices shot up as US stocks rallied for the third straight day right out of gate following the improved sentiment that came amid reports that officials in Europe are planning to shore up the region's fiscal and financial problems. A weak dollar also pushed up crude prices.
Bullions end their three-day losing streak
Prices shine as dollar weakens and Europe shows support for Greece
Precious metals ended their three-day losing streak and ended higher on Tuesday, 27 September 2011 at Comex. Prices rose following the improved sentiment that came amid reports that officials in Europe are planning to shore up the region's fiscal and financial problems. A weak dollar also pushed up bullion prices.
Market seen slightly higher on positive global cues
The market is likely to see a positive start on firm global cues. US markets edged higher on Tuesday and most Asian markets were trading firm Wednesday amid hopes that European leaders are preparing a major response to the euro zone debt crisis. Trading of S&P CNX Nifty on the Singapore stock exchange indicates a gain of 7 points at the opening bell.
Foreign institutional investors (FIIs) bought shares worth Rs 34.08 crore on Tuesday, 27 September 2011, as per provisional data from the stock exchanges. FII outflow totaled a huge Rs 3668.99 crore in three trading sessions from 22 to 26 September 2011, as per data from the stock exchanges. Domestic institutional investors (DIIs) absorbed part of the heavy selling by FIIs, with net inflow of Rs 2084.06 crore during those three trading sessions.
Tuesday, September 27, 2011
BSE Bulk Deals to Watch - Sep 27 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
27/9/2011 517356 ACI Infocom BARRY MERCANTILE PRIVATE LIMITED B 248681 53.10
27/9/2011 517356 ACI Infocom SANJAY AGARWAL HUF S 250000 53.10
27/9/2011 506027 Bhoruka Alum CHETAN LAXMIKANT DAVE B 163291 10.87
27/9/2011 506027 Bhoruka Alum CHETAN LAXMIKANT DAVE S 163291 10.90
NSE Bulk Deals to Watch - Sep 27 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
27-SEP-2011,HEXAWARE,Hexaware Technologies Lim,ELDER VENTURE LLP .,BUY,5200000,74.75,-
27-SEP-2011,INDOWIND,Indowind Energy Limited,SHREE BHUVANAKARAM TRADINVEST PRIVATE LIMITED,BUY,617432,13.26,-
27-SEP-2011,PGEL,PG Electroplast Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,84021,439.57,-
27-SEP-2011,PGEL,PG Electroplast Ltd,ALFA FISCAL SERVICES PVT LTD,BUY,103007,398.99,-
Sensex soars on global rebound…Nifty tops 4950
The Indian markets have turned a bit volatile ahead of the F&O expiry on Thursday. After Monday’s 30 point decline, the NSE Nifty today rallied by 3% led by gains in the index heavy weights like RIL, ICICI Bank and Infosys. Short covering was witnessed in the interest rate sensitive sectors like Realty, Banking and Auto stocks.
The BSE Sensex and the Nifty both closed near the best levels of the day.
Sensex surges 473 points on global optimism
Indian indices
It was a strong pullback rally after four-day fall following robust gains on global front. Investors were in buoyant mood today on hopes that European Finance Ministers would take strong steps to tackle Greece’s debt crisis. Buying interest was seen across the board, which kept the markets strong all throughout the day amid global optimism. Gains in the ADAG pack and index heavyweights like RIL, SBI, TCS, Infosys, ICICI Bank, JP Associates and HDFC also led the upmove.
Sensex movements: Global rally pushed the Sensex 238 points higher at 16289 in the opening trade. Then the index gathered pace and maintained its uptrend on good buying interest and positive global cues. In the last half hour of trade, buying intensified across the board and strong gains in the European stocks led the index to touch the day’s high of 16552 . The Sensex jumped 473 points to close at 16524 and the Nifty gained 136 points to settle at 4971.
The Jhunjhunwala Magic
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Sharekhan presents a list of companies that buzzed on D-street the moment billionaire investor Rakesh Jhunjhunwala eyed them.
Rakesh Jhunjhunwala, Partner, Rare Enterprises and our very own Indian Warren Buffet, has made some companies buzz on the street with his expression of interest in them. Sharekhan presents a list of such companies that did magic on D-streets the moment billionaire investor Rakesh Jhunjhunwala eyed them. The list is sorted with recency from lastest to last.
Nifty October 2011 futures at premium
Turnover declines
Nifty September 2011 futures were at 4983, at a premium of 11.75 points over spot closing of 4971.25. Nifty October 2011 futures were at 4999.40, at a premium of 28.15 points over spot closing of 4971.25.
Turnover in NSE's futures & options segment decreased to Rs 166532.87 crore from Rs 193404.14 crore on Monday, 26 September 2011. The near month September 2011 derivatives contracts expire on Thursday, 29 September 2011
Market snaps 4-day losing streak as Govt mulls cutting STT
Media reports that the finance ministry is considering some tax cuts on equities to lower transaction costs and broaden participation in the market helped the market snap 4-day losing streak. A rally in world stocks triggered by reports that European policy makers are considering new plans to support European countries struggling with debt, further aided the surge on the domestic bourses today, 27 September 2011. The BSE Sensex jumped 472.93 points or 2.95%, up close to 240 points from the day's low and off close to 30 points from the day's high. The Sensex and the 50-unit S&P CNX Nifty attained their highest closing level in nearly one week.
Daily News Roundup - Sep 27 2011
The Ministry of Defence has decided to put on hold the JV of MDL with Pipavav Shipyard till a policy on JVs is put in place by the government. (BS)
DB Realty is in talks with major real estate companies for joint developments in two of its prime properties in the Mumbai which are valued around Rs30bn. (BS)
Goldman Sachs has invested about Rs10bn in ReNew Wind Power. (BL)
Sensex pares steep loss on firm European cues
After a turbulent previous week and an anxious weekend, the Indian equity indices ended in the negative terrain, starting off the new week on a sour note. The NSE Nifty extended its losing streak to a third straight trading session amid sustained selling by FIIs as they continue to be risk averse amid uncertainty over the eurozone credit crisis and economic slowdown in the US.
Finally, the BSE Sensex ended at 16,051, dropping 111 points. It had earlier touched a day's high of 16,209 and a day's low of 15,801. It opened at 16,209. The NSE Nifty closed at 4,835, down 32 points.
Long time, no see!
Be life long or short, its completeness depends on what it was lived for -David Jordan.
After long, a relief rally appears to be underway. How long it lasts, remains to be seen. The trigger is some new-found optimism that European leaders will be able to brush aside political differences to quell the region’s credit crisis.
Strong start likely on euro zone hopes
Relief about the possibility that there might be a solution to Europe's debt problems is boosting sentiment today. The opening is expected to be on a strong note.
Headlines for the day:
Pipavav warship joint venture put on hold
DB Realty in JV talks with other firms
GMR to sell 30% stake in Singapore arm to Petronas
Gas supply shortage short-circuits power output
Crude ends little higher
Gains remain checked on fears of another recession
Crude prices ended little higher on Monday, 26 September, 2011 at Nymex. Though prices rose in tandem with US equities, fears of another recession hitting the economy put a brake on this rise.
Light and sweet crude for October delivery rose $0.39 (0.5%) to $80.24 a barrel on the New York Mercantile Exchange on Monday. Prices fell to a low of $77.11 and rose to a high of $80.85 during intra day trading. Last week, crude lost 9.2%. For the month of August, 2011, crude shed 7.1%.
Market geared for a strong start on upbeat global cues
The market is likely to see a strong start on upbeat global cues. Also bargain hunting after prior four days of decline may support gains. Trading of S&P CNX Nifty on the Singapore stock exchange indicates a surge of 85 points at the opening bell. Volatility is expected to rise this week as traders roll over positions in the futures & options (F&O) segment from the near-month September 2011 series to October 2011 series. The September 2011 derivatives contracts expire on Thursday, 29 September 2011.
Bullions continue with their downward slide
Prices continue to turn pale even on Monday after their last week's huge drop on Friday
Precious metals continued their downward slide following their last Friday's huge drop and ended substantially lower once again on Monday, 26 September 2011 at Comex. Prices fell as investors hedged against a possible global liquidity crunch and reacted to increases in margin requirements for gold.
Tijaria Polypipes IPO Analysis
Tijaria Polypipes, is promoted by Mr. Alok Jain Tijaria, Mr. Vikas Jain Tijaria, Mr. Praveen Jain Tijaria and Mr. Vineet Jain Tijaria. It is based at Jaipur, manufacturing various kinds of high grade plastic based pipes viz HDPE pipes, PVC pipes, LLDPE pipes, HDPE DWC pipes, PLB HDPE Ducts, MDPE pipes, uPVC rigid & blue casing pipes, Pet Granules, micro/drip irrigation system, SWR pipes & fittings, PPR pipes & fittings, HDPE sprinkler system under the brand name of "TIJARIA" and "VIKAS". These products are used in irrigation, telecommunication, industrial and infrastructure & housing sector.
Monday, September 26, 2011
BSE Bulk Deals to Watch - Sep 26 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
26/9/2011 524606 Beryl Drugs GLOBALWORTH SECURITIES LIMITED B 105001 12.75
26/9/2011 524606 Beryl Drugs GOVIND GURJAR B 30500 12.75
26/9/2011 524606 Beryl Drugs BERYL SECURITIES LTD B 51600 12.75
26/9/2011 524606 Beryl Drugs AILISH TRADERS PRIVATE LIMITED S 97963 12.76
26/9/2011 524606 Beryl Drugs ADDO CONSTRUCTIONS PVT LTD S 133547 12.76
NSE Bulk Deals to Watch - Sep 26 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
26-SEP-2011,GITANJALI,Gitanjali Gems Limited,JAIWANTI MERCANTILES PRIVATE LIMITED,BUY,440000,346.26,-
26-SEP-2011,GRAVITA,Gravita India Limited,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,117966,441.93,-
26-SEP-2011,GRAVITA,Gravita India Limited,VICKY RAJESH JHAVERI ,BUY,85537,450.03,-
Commodity market turmoil pushes Sensex 111 points lower
After showing some recovery during the day, the Indian markets fell again and closed the volatile session on a lower note
Major headlines
Dr Reddy, JB Chemicals scrap proposed Russian deal
Titan Industries slips as gold prices fall
Gold, Silver decline on recession fears
EIH, EIH Associate spurts on new takeover code
Coal India falls as workers to strike on October 10
Finance Ministry considers trimming STT
Sensex slumps 6.1% in four days as FIIs step up selling
Key benchmark indices dropped for the fourth day in a row to hit one-month closing lows as fears of weak Q2 September 2011 results and data showing heavy selling by foreign funds recently, weighed on investor sentiment. The market was volatile. The market breadth was weak. The barometer index BSE Sensex settled above the psychological 16,000 mark, having alternately swung above and below that mark in intraday trade. The Sensex lost 110.96 points or 0.69%, up close to 260 points from the day's low and off close to 160 points from the day's high.
Daily News Roundup - Sep 26 2011
The Mines Ministry has said NMDC’s foray into steel making is not in the best interest of mineral development and utilisation. (BS)
IVRCL Assets and Holdings Limited, is in the process of signing an MOU for developing a Rs1bn automated multi-level car parking terminal in Kenya (BS)
Cairn Energy will have to fork out about US$1.5bn as tax for its stake sale deal with Vedanta Resources in Cairn India. (BL)
Sensex turns lower again after brief relief
Another attempt by the key Indian stock indices to bounce back into positive terrain came a cropper with the BSE Sensex and the NSE Nifty failing to reverse the day's gains. The Sensex and the Nifty briefly turned positive in the mid afternoon trade but retraced back soon. The recovery could not last long as the European indices gave up some of the early morning's gains.
At 03:03 pm (IST), the BSE Sensex was trading at 16,221, down 139 points or 0.85% over the last close.
Waiting to be transformed!
"..A truly stable system expects the unexpected, is prepared to be disrupted, waits to be transformed." - Tom Robbins.
After a tumultuous week and a nervous weekend, market participants can at least look forward to a stable opening. The US and European stock indices managed to claw their way back on Friday. But on the week markets across the globe were down substantially. Asian markets too seem to be struggling to stage a meaningful comeback. Hence, one must be careful and guarded in approaching the markets in the near term.
Markets may open in green
The Indian markets are expected to see some green in the opening trade on supportive global cues.
Headlines for the day:
Maruti ramps up Swift production
Job growth to slow down in non-IT sectors
Omaxe scraps Rs80,000-cr housing project
Market seen opening sideways
Trading of S&P CNX Nifty on the Singapore stock exchange indicates a gain of 7 points at the opening bell. Asian stocks today, 26 September 2011, extended last week's heavy losses triggered by worries about global economic outlook. Volatility is expected to rise this week as traders roll over positions in the futures & options (F&O) segment from the near-month September 2011 series to October 2011 series. The September 2011 derivatives contracts expire on Thursday, 29 September 2011.
Sunday, September 25, 2011
Weekly Technical Analysis - Sep 25 2011
Markets slumped in the latter half of the week, after the US Federal Reserve's statement renewed fears of a double-dip recession in the US. Also, the Fed's proposed new package, termed as 'Operation Twist', to buy long-term bonds and sell short-term bonds worth $400 billion did not inspire any confidence in investors worldwide.
Market slumps on weak global cues
The market slumped last week, snapping a 3-week rally, as fears of weak Q2 September 2011 corporate earnings, a further slowdown in China's manufacturing sector and Federal Reserve's assessment that the US economy faces significant downside risks rattled investors. Key benchmark indices fell in four out of five trading sessions during the week.
The BSE Sensex slumped 771.77 points or 4.56% to 16,162.06 in the week ended Friday, 23 September 2011. The S&P CNX Nifty tumbled 216.50 points or 4.25% to 4,867.75.
Market may remain volatile ahead of F&O expiry
Fears of weak Q2 September 2011 results may continue to weigh on Indian stocks, which witnessed a steep slide recently. Volatility is expected to rise as traders roll over positions in the futures & options (F&O) segment from the near-month September 2011 series to October 2011 contracts. The September 2011 derivatives contracts expire on Thursday, 29 September 2011.
Nearly a quarter of top 100 companies have paid lower advance tax in Q2 September 011, reflecting the slowdown in growth and pressure on margins because of rising input costs and higher interest rates. The advance tax payment by top 100 companies rose a modest 9.9% in Q2 September 2011 from a year ago against 19% growth in Q1 June 2011, suggesting corporate profit growth is likely to be muted in the second quarter.
Saturday, September 24, 2011
Friday, September 23, 2011
Sensex, Nifty settle at 4-week lows
Key benchmark indices slipped for the third straight day amid high intraday volatility to reach 4-week closing lows as fears of weak Q2 September 2011 results and data showing heavy selling by foreign funds hit sentiment adversely. The Sensex lost 199.09 points or 1.22%, off close to 205 points from the day's high up about 110 from the day's low. The market breadth was weak. The Sensex had slumped 4.1% on Thursday, 22 September 2011.
Grey Market Premium - Sep 23 2011
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Vaswani Ind. | 49 | Discount |
| SRS Ltd. | 58 | 2 to 3 |
| P. G. Electroplast | 190 to 210 | 3 to 3.50 |
| Prakash Constrowell | 130 to 138 | 3 to 5 |
| RDB Rasayan | 72 to 79 | -- |
| Tijaria Polypiles | 60 | - |
| Takshell Solutions | -- | -- |
Crude comes spiraling down
Prices tumble as global indices register drastic drop amid global economic growth concerns
Crude prices tumbled on Thursday, 22 September, 2011 at Nymex. Prices fell in tandem with US equities which ended considerably lower and also as strong dollar pressured commodities. Global economic growth concerns led to this fall.
Light and sweet crude for October delivery fell $5.4 (6.2%) to $80.52 a barrel on the New York Mercantile Exchange on Thursday. Prices fell to a low of $79.66 and rose to a high of $85 during intra day trading. Last week, crude gained 0.8%. For the month of August, 2011, crude shed 7.1%.
Daily News Roundup - Sep 23 2011
Reliance Industries is undertaking a comprehensive review of its oil and gas strategy to drill abroad instead of bidding for new blocks in view of its ordeals with regulators and auditors. (ET)
Coal India may miss its output target for 2011-12 due to heavy rainfall and law & order problems affecting production. (ET)
About a dozen trade unions demonstrated at various places across the country to express solidarity with agitating Maruti Suzuki workers at Manesar plant. (ET)
Sensex plummets on global rout…Nifty nosedives 200 points
Stock markets around the world got squeezed out with equities across the board rocked by relentless selling. The sentiment in India was hit hard by a worldwide selloff, notwithstanding the latest round of monetary easing by the US Federal Reserve.
The NSE Nifty suffered its biggest percentage fall since August 2009 while registering its biggest point fall since October 2008. The Sensex had its worst fall in more than a year.
The India Vix index shot up 22.5% in a single day, hitting 33.88 levels. The total turnover on the Indian bourse crossed Rs. 2 lakh crores while the advance-decline ratio was clearly in favour of the bears.
Bear the burden!
People become attached to their burdens sometimes more than the burdens are attached to them. ~George Bernard Shaw.
The prophets of doom seem to be having their way. Panic seems to have got the better of market players globally, as policymakers in the US and Europe struggle to stem mounting fears of double-dip recession. The cuts have been absolutely brutal. What’s worse, the mayhem may not be over yet.
Big gap- down likely at start as recession fears deepen
Global recession fears have taken a big toll. This may lead to a weak start on the Dalal Street, extending previous session’s losses.
Headlines for the day:
Realty regulator soon, says Union Minister
State Bank of India doubles MTN programme size to $10 billion
Indian Oil to raise borrowing limits by Rs 30,000 crore
Essar Power eyes distribution licence
ITC raises cigarette prices after VAT hike
Market may extend Thursday's steep losses on weak Asian stocks
The market may extend Thursday (22 September 2011)'s 4.13% slump on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 73 points at the opening bell.
Fears of weak Q2 September 2011 corporate earnings and a rout in global stocks triggered by data showing a further slowdown in China's manufacturing sector and Federal Reserve's assessment that the US economy faces significant downside risks rattled Indian shares on Thursday, 22 September 2011. The BSE Sensex tanked 704 points or 4.13% to settle at 16,361.15, its lowest closing level since 26 August 2011.
Thursday, September 22, 2011
BSE Bulk Deals to Watch - Sep 22 2011
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
22/9/2011 533412 Aanjaneya Lifecare SONAL SHARES INVESTMENT & COMPANY(MEET SUMANBHAI PATEL) S 71200 491.97
22/9/2011 524760 Arvind Intl-$ HARSHA MAYURBHAI SHETH B 154931 18.53
22/9/2011 524760 Arvind Intl-$ HARSHA MAYURBHAI SHETH S 109331 18.62
NSE Bulk Deals to Watch - Sep 22 2011
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
22-SEP-2011,ARSSINFRA,ARSS Infra Proj. Ltd,GARNET INTERNATIONAL LTD,BUY,116016,376.27,-
22-SEP-2011,EVERONN,Everonn Education Limited,TAINWALA FINANCIAL CONSULTANTS P LTD,BUY,100000,404.90,-
Operation Twist or Quit
Fed Chairman Ben Bernanke announced on Wednesday that he would shuffle up the Fed's portfolio, selling $400 billion worth of shorter-term securities and buying longer-term ones to boost the economy. The latest move is aimed at lowering long-term interest rates and prompting more investment
More
Recent Sensex Biggest Crashes
Following are some of the biggest single day falls of the BSE Sensex in recent history:
| Sr. No | Date | Crash |
| 1 | January 21, 2008 | 1,408.35 points |
| 2 | Oct 24, 2008 | 1070.63 points |
| 3 | March 17, 2008 | 951.03 points |
| 4 | July 6, 2009 | 870 points |
| 5 | January 22, 2008 | 857 points |
| 6 | February 11, 2008 | 833.98 points |
| 7 | May 18, 2006 | 826 points |
| 8 | October 10, 2008 | 800.10 points |
| 9 | March 13, 2008 | 770.63 points |
| 10 | December 17, 2007 | 769.48 points |
| 11 | January 7, 2009 | 749.05 points |
| 12 | March 31, 2007 | 726.85 points |
| 13 | October 6, 2008 | 724.62 points |
| 14 | October 17, 2007 | 717.43 points |
| 15 | September 15, 2008 | 710.00 points |
| 16 | January 18, 2007 | 687.82 points |
| 17 | November 21, 2007 | 678.18 points |
| 18 | August 16, 2007 | 642.70 points |
| 19 | August 17, 2009 | 626.71 points |
| 20 | June 27, 2008 | 600.00 points |
| 21 | February 24, 2011 | 545.92 points |
| 22 | November 16, 2010 | 444.55 points |
| 23 | February 4, 2011 | 441.92 points |
| 24 | November 12, 2010 | 432 points |
| 25 | August 5, 2011 | 387.31 points |
| 26 | November 19, 2010 | 345.20 points |
Rupee slumps to 28-month low...Stocks plunge, Dollar jumps
The rupee plummeted to a new two-year low against the US dollar on Thursday on the back of relentless selloff in global equities and Asian currencies.
Also, the dollar climbed to a seven-month highs against major currencies after the Federal Reserve said that there were significant downside risks to the economy.
Terrible Thursday; Sensex tanks 704 points on global carnage
The sentiment remained bearish, with investors reacting badly to Fed’s policy decision and downbeat view on economic growth. The Sensex fell 704 points and the Nifty dropped 210 points
Major headlines
Gravita India soars on buying more stake in J&K unit
Food inflation at 8.84% versus 9.47%
Asahi Infra, Avon Corp, K Sera, IKF Tech down on SEBI’s order
Nifty September 2011 futures below 4950
Turnover jumps
Nifty September 2011 futures were at 4908.35, at a discount of 15.30 points compared to spot closing of 4923.65. Turnover in NSE's futures & options segment jumped to Rs 188323.36 crore from Rs 111982.80 crore on Wednesday, 21 September 2011.
Bharat Heavy Electricals September 2011 futures were at 1602.45, at a discount compared to spot closing of 1604.00.
Sensex slumps 4.1% amid global rout in equities
Fears of weak Q2 September 2011 corporate earnings and a rout in global stocks triggered by data showing a further slowdown in China's manufacturing sector and Federal Reserve's assessment that the US economy faces significant downside risks rattled Indian shares. The 50-unit S&P CNX Nifty settled near 3-1/2-week closing low below the psychological 5,000 level. The barometer index BSE Sensex settled near 4-week trough. The Sensex tanked 704 points or 4.13%, up close to 45 points from the day's low and off about 470 points from the day's high.
Daily News Roundup - Sep 22 2011
The agitating workers of Maruti Suzuki India are convening a joint convention of various unions in the Gurgaon-Manesar manufacturing hub for a final showdown. (ET)
Sterlite Technologies has received a contract worth Rs1.14bn from BSNL to build a broadband network. (ET)
Apollo Hospitals will divest minority stake in Apollo Health Street, the group's BPO division. (BL)
Twisting Thursday
What separates the winners from the losers is how a person reacts to each new twist of fate. - Donald Trump.
Survivors are winners in such kind of markets. There are no real surprises in the US Federal Reserve’s much-hyped ‘Operation Twist’. The FOMC has unveiled a $400bn debt-swap program to shake the US economy out of its deep slumber. The Fed has also warned of significant downside risk to US growth from the turmoil in the eurozone.
Crude slips despite big drop in crude stockpiles
Prices end lower following demand concerns which rise after Fed meeting
Crude prices ended lower on Wednesday, 21 September, 2011 at Nymex. Prices rose earlier during the day following the weekly inventory report which showed a bigger than expected drop in crude stockpiles for last week. Most traders also awaited the outcome of the Federal Open Market Committee meeting, which ended with a statement on Wednesday. Prices pared gains following Fed's statement. Prices fell in tandem with US equities which ended considerably lower following downgrades of debts of US banks.
Bullions end mixed
Gold settles lower while silver shines ahead of FOMC meet
Precious metals ended mixed on Wednesday, 21 September 2011 at Comex. Gold ended marginally lower after spending the entire day in the red. Silver prices ended higher. Bullions ended mixed as most metals traders awaited the outcome of the Federal Open Market Committee meeting. The dollar index slipped marginally today.
Gold for December delivery fell $1 or 0.1%, to end at $1,808.1 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday. Last week, gold lost 2.4%. It rose by $201 or 12% during the month of August.
Copper firms up
Supply-and-demand fundamentals for copper provide support for the metal
Copper prices at Comex ended higher on Wednesday, 21 September 2011. Supply-and-demand fundamentals for copper continued to strengthen, providing support for the metal. Copper also rose as Federal Reserve policy makers met to consider ways to boost economic growth.
Copper for December delivery ended higher by 4 cents (1%) to $3.76 a pound at Comex on Wednesday. Last week, copper lost 1.8%. Copper ended the month of August lower by 6.3%.
Market may slide on weak Asian stocks; food inflation data eyed
The market is likely to open on a weak note tracking lower Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 74 points at the opening bell. Fears of weak Q2 September 2011 corporate earnings are also likely to weigh on sentiment. Nearly a quarter of top 100 companies have paid lower advance tax in Q2 September 2011.
On the flip side, the Indian government's decision to defer the mega Rs 11000 crore follow-on public offer (FPO) of ONGC has helped ease concerns of the large issue sucking secondary market liquidity. As per the original plan, the FPO was scheduled to open for bidding on Tuesday, 20 September 2011.
Wednesday, September 21, 2011
Markets end see-saw trade in red
After a spectacular rally in the previous session, the Indian markets were directionless today and closed on a negative note. The Sensex fell 34 points and the Nifty slid 7 points.
Major headlines
Global economy facing slowdown: PM
Idea Cellular, Bharti Airtel gain on strong user addition in August
KS Oils sale may face obstacle; stock falls
Everonn Education rallies 5% on stake sale to Dubai-based Co
BSE Mid-Cap, Small-Cap indices nudge higher
Key benchmark indices edged lower amid intraday volatility on euro-zone debt worries. A rally in a number of side counters was the highlight of the day's trading session. The barometer index BSE Sensex lost 34.13 points or 0.2%, up about 65 points from the day's low and off close to 125 points from the day's high. BSE Small-Cap and Mid-Cap indices both edged higher. Index heavyweight Reliance Industries (RIL) declined. Auto stocks fell on worries higher interest rates and the latest petrol price hike may adversely impact sales of cars and two-wheelers during the festive season.
Latest Grey Market Premiums - Sep 21 2011
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Vaswani Ind. | 49 | Discount |
| SRS Ltd. | 58 | 2 to 3 |
| P. G. Electroplast | 190 to 210 | 3 to 3.50 |
| Prakash Constrowell | 130 to 138 | 3 to 5 |
| RDB Rasayan | 72 to 79 | -- |
| Tijaria Polypiles | 60 | - |
| Takshell Solutions | -- | -- |
Daily News Roundup - Sep 21 2011
The promoters of KS Oils may face obstacles in their plans to sell the company as accounting issues and a possible loss of around Rs4bn deters buyers. (ET)
Everonn Education will sell a 12% stake for Rs1.38bn to GEMS Education via a preferential allotment of shares. (ET)
Subex is selling part of its business to Netcracker to pay back nearly US$54.8mn to foreign currency bond holders in March. (ET)
Sensex scores triple ton…Nifty tops 5100
After two days of declines, bulls were back with a bang as the NSE Nifty surged over 100 points while the BSE Sensex shot up by more than 300 points on Tuesday. Just when one thought that we are in for another down day, markets did exactly the opposite. The key indices flourished despite weak cues from the US and select Asian markets. Sentiment got a boost after European markets rebounded after a soft start.
Slow and steady!
Focus on learning at various venues before you settle down for a steady position. - Rocco DiSpirito.
It is difficult to really settle down as uncertainty prevails over a whole host of issues – domestic and global. The start is likely to be soft to steady as Asian markets appear to be clueless.
Markets expect a negative opening
The Indian markets may open in red as the Asian stocks appear to be unsupportive. Caution prevails ahead of the outcome of the Federal Reserve's two-day policy meeting.
Headlines for the day
L&T set to partner Hindustan Shipyard
BoI seeks Rs4,000 crore from Centre
Maruti Suzuki workers refuse to hold talks with management
Green ministry softens stand on coal mining
Market may open lower
The market may open lower if trading of S&P CNX Nifty futures on the Singapore stock exchange is of any indication. It indicates a fall of 31 points at the opening bell. Asian stocks were mostly higher.
Key benchmark indices spurted to 1-1/2 week closing highs on Tuesday, 20 September 2011 as European stocks rose and as US index futures jumped, buoyed by expectations that Greece will receive the next aid tranche from international creditors as well as hopes that the Federal Reserve may announce fresh measures to stimulate the economy. The BSE Sensex jumped 353.93 points or 2.11% to settle at 17,099.28, its highest closing level since 8 September 2011.
Tuesday, September 20, 2011
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