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Showing posts with label K R Choksey. Show all posts
Showing posts with label K R Choksey. Show all posts

Saturday, July 14, 2007

Share Dalal - then and now..


K R CHOKSEY ON BROKERS THEN AND NOW.

When Kisan Ratilal Choksey participated in the annual general meeting of Madras Cements Limited in Rajapalayam in interior Tamil Nadu five decades ago, he was one of 15 shareholders at the AGM and the only one coming from 1,500 miles away. “Two company officials came to the railway station to see me off,” recalls Choksey.

Incorporated in 1961, Madras Cement is not a favourite stock on the bourses today, but Choksey, 69, says he has earned enough and more from the stock. Choksey’s experience with Madras Cements is the story of the enormous change in the India stock market over the past decades.

For starters, the size of the investor base has gone up dramatically. “Even raising a few lakhs was a Herculean task because people did not understand shares as an asset class like we do today,” Choksey says.

Most capital investments were funded by borrowings and the equity cult only really took off after the seventies when Dhirubhai Ambani entered with his big bang public offer that laid the foundation for the Indian stock market.

“Dhirubhai had an overwhelming feeling that if investors were not kept happy, he couldn’t get more money and that would limit his growth. So he treated investors as family members,” says Choksey, who runs his 28-year-old broking firm, K R Choksey Shares and Securities. Reliance Industries Limited now boasts a shareholder base of over 1.8 million crore investors.

Then, again, from an information scarce world we have an information overload today. Choksey had to wait for a company’s annual shareholder meeting to know about its plans and prospects, while today companies have to mandatorily report quarterly financials and material events impacting share price.

“At that time we did not have even telephones, but now we have conference calls organised by companies, and also websites, television channels and pink papers analyse the market threadbare everyday.”

As against today’s fat research reports, Choksey says he was one of the very few to do one-page reports on companies.

Though the basics of investing were the same, research was constrained by lack of adequate resources. Finance as a science too was still evolving.

“I used to look at the gross block for the past years to see if the company was building capacities to sustain growth, and then see if the price-earnings for the share were justified or not,” says Choksey, who started off as a partner in his family-owned M K Choksey & Company in 1961 after acquiring a commerce degree from Mumbai’s Poddar College.

It is the faith in fundamentals that helped Choksey and others survive stormy times and grow their businesses.

“I used to study during lean markets and sharpen my skills,” adds Choksey who still attends his office in Jeejeebhoy Tower. Being up-to-date is even more important today because very few companies are able to sustain businesses successfully for a length of time due to changes in the economic climate.

Even as unsuccessful companies perish, new companies are added to the list, increasing the choice for investors. Till the eighties, the number of securities traded was less than 400; the IPO boom of the early nineties took this number to around 4,000.

If it was fundamentals for some like Choksey, it was gambling for others. A leading operator in the seventies and eighties, Manu Manek ruled the market till Harshad Mehta came to the forefront.

“Manek was a legendary personality and a powerful operator who dictated the market,” says Choksi. Without his nod, it was impossible to become the director of a company. Apparently, on the day of election, he would send the name or list of directors to companies — and only those people ever got elected.

Though everybody appeared aware of this, no charges were ever levied against him. Omnipresent in the stock market, his favourite hunting ground was Indian Iron, which recently merged with SAIL.

Among leading operators in those times were San Bagh Chand for Scindia Steamship Navigator and Sumtilal Jamnalal for Century Mills. Harshad Mehta and Ketan Parekh came much later, in the early and late nineties.

One thing that has not changed though is rampant speculation. Ever since stock trading began some 180 years ago, speculation has been rampant and, after the introduction of badla, there would be speculation on speculation!

“Since positions could be carried forward under badla, members would come to know who is building positions in which counter. Speculators would then bet on the strength and weakness of the operator in the stock. In fact, a number of operators/brokers failed because they accumulated huge positions and finally could not exit from the stock,” remembers Choksey.

This was one of the factors the capital market watchdog was investigating during the Ketan Parekh-led scam in 2001, when Anand Rathi, the president of BSE, was charged with misusing his position to support a bear cartel allegedly formed by market operators Shankar Sharma and Nirmal Bang to bring down the bulls of the time. All three were eventually exonerated.

Choksey’s business values have not changed in the face of changes in the broking industry.

“It was a royal business with two hours of trading, and a lot of holidays — about 4-5 days for Diwali, a week or 10 days for Christmas, and holidays for festivals and state and central government holidays. Now, you’ve got to serve clients round the clock, all through the year, and even that’s not enough.”

Thursday, May 24, 2007

Good Evening - May 23 2007


Markets traded weak in opening trade despite positive global cues. But rupee appreciation (40.60/$) and upward journey of Crude Oil ($66.2/bbl) raised some concern. Nifty fell marginally after hitting a new lifetime high of 4277.80 in opening trade. Sensex and Nifty have gained 3.5% over the last four sessions. However, concerns over sustainability of the rise and a mixed trend in Asian markets also kept investors wary. At 10:30AM, Sensex was 14371.20, down 47.40 points or 0.3%. Nifty was at 4249.85, down 11.05 points or 0.3%. The CNX Midcap and S&P CNX 500 indices were down marginally. On the BSE, there were nearly as many advances as declines in the morning session. The worst hit frontline stocks were oil retailers BPCL, down 1.8% at Rs 386, and HPCL, down 1.6% at Rs 300. Oil marketing companies are likely to stay weak as crude oil is trading above $66 a barrel on NYMEX and is seen staying firm on worries that a report due later this week will show a fall in US gasoline inventories. Technology shares were among laggards, as the rupee remained strong against the dollar, currently trading at Rs 40.60 to $1. Infosys Technologies was down 1.2% at Rs 1,937, and HCL Technologies, down 1.2% at Rs 344. Sun Pharmaceutical Industries, up 3% at Rs 1,098, was the biggest Nifty gainer, extending Monday gains as the Rs 18.6 bn buy of Israel's Taro Pharmaceutical Industries is seen without equity dilution. Other gainers included Zee Entertainment Enterprises, up 3% at Rs 308, BHEL, up 1.8% at Rs 2,682, Tata Steel, and up 1.3% at Rs 631. In the mid trading session, indices were flat amid choppy trade on profit sales after four sessions of gains. Sensex was at 14410.89, down 7.71 points, or 0.1%. Nifty was at 4262.70, up 1.80 points, or 0.1%. Zee Entertainment, up 3%, was the top Nifty gainer. Sentiment for media shares was up amid positive news flows and as valuations are attractive. Raj TV touched upper circuit of 10% at Rs 26. Bajaj Auto, down 3% at Rs 2,178, was the worst hit on Nifty. Deutsche Bank Securities has downgraded the stock "sell" on lower valuations for its insurance segment. Marico was up 0.2% at Rs 60.50. 47 lakh shares changed hands in a block deal on BSE, NSE at Rs 60/sh. We also saw no of block deals in this counter. Spicejet was up 2.6% at Rs 46.70. The company expects to be breakeven in Apr-June 2007 quarter and plans to fly to 6 new destinations and to operate 150 flights/day by the end of this fiscal. It is also planning to acquire 8 Boeing aircrafts in FY08. Reliance Capital surged 5% to Rs 1,018 on reports it has made a profit of Rs 3.5 bn by selling its entire 5.79% stake in Reliance Energy for Rs 7.25 bn to promoters of Reliance Energy on Monday. Reliance Communications shares were trading 3% up at Rs 522 on a report on CNBC-TV18 that the company has cut its roaming rates by 70%. Bharat Forge was up 1.7% No. of Scrips Value (Crs.) Advances 539 8024 Declines 518 3373 Unchanged 26 7 Total 1083 11404 at Rs 341. In Q4, the company reported standalone net profit of Rs 64.3 cr Vs Rs 53 cr YoY. Whereas net sales stood at Rs 510 cr Vs Rs 438.4 cr. Mukand Ltd declined 5% at Rs 90.50 on bad quarter results. In Q4, the company reported net profit down at Rs 22 Vs Rs 27 cr. Nifty closed at a record high for the second straight session, settling marginally higher than Monday's finish, as investors were cautious due to worries over long-term sustainability of recent gains. Trade today was volatile due to alternate bouts of bottom fishing and profit sales. Firmness in other Asian markets provided support to key indices. After opening at alltime high, the Nifty succumbed to profit sales as some investors opted to stay on the sidelines. Sensex ended at 14453.72, up 35.12 points or 0.2%, after touching a low of 14348.26 and a high of 14483.59 intraday. Nifty ended at 4278.10, up 17.20 points or 0.4%. It moved between a low of 4234.10 and an all-time high of 4281.60 in the session. The combined turnover on the two exchanges was Rs 166 bn. CNX Midcap Index ended up 0.6% and S&P CNX 500 Index up 0.3%. The biggest sectoral gainer was BSE Capital Goods Index, up 0.6%. Media stocks took centre stage in today's trade amid some news-driven, stock specific activity. Zee Entertainment, up 4.5% at Rs 312, was the top Nifty gainer. Sentiment for media shares was up amid positive news flows and as valuations was attractive. Zee Entertainment gained on reports Telecom Regulatory Authority of India will review tariff of non-CAS (conditional access system) areas. Balaji Telefilms, up 2% at Rs 245, extended gains for second straight session. NDTV was up 2.4% at Rs 428. Shares of TV18 group companies hit upper circuit after the parent announced a 50-50 joint venture with Viacom Inc. called Viacom18. TV18 ended up 2.4% at Rs 868, Global Broadcast News up 5% at Rs 780, and Network 18 Fincap up 5% at Rs 601. Other Nifty gainers included Housing Development Finance Corp., up 4.3% at Rs 1,793, Reliance Communications, up 3.1% at Rs 523, and VSNL, up 2.9% at Rs 473. Reliance Communications gained on reports the company will add 20,000 towers in 2007-08 (Apr-Mar) and is also close to selling stake in its tower business. There is talk that the company will announce a 70% cut in its roaming rates. Reliance Capital rose 5.3% to Rs 1,020 on reports it has made a profit of Rs 3.5 bn by selling its entire 5.79% stake in Reliance Energy for Rs 7.25 bn to promoters of Reliance Energy on Monday. ABB ended up 2% at Rs 4,361 after winning a Rs 2.89 bn order from Delhi Metro Rail. Bajaj Auto, down 2.3% at Rs 2,196, was the worst hit in the Nifty, extending losses, as worries persist over the valuation of the company's stake in the insurance joint ventures with Allianz. SBI ended down 1.7% at Rs 1,326. Information technology shares were also weak, as the dollar remained weak against the rupee. Other losers included GACL, down 2% at Rs 116, and HPCL, down 1.7% at Rs 300. Shares of oil retailers fell as crude oil prices are holding above $66 a barrel on New York Mercantile Exchange. Everest Kanto Cylinder, which fell early today on a 50% on year decline in Jan- Mar net profit to Rs 51.2 mn, ended 1% up at Rs 1,155. Tech stocks ended down. Infosys was down at Rs 1946.75 with volumes of Rs 462 crs, TCS was down at Rs 1230.65 with volumes of Rs 189.67 crs, Satyam was down at Rs 450 with volumes of Rs 177.30 crs, and Wipro closed down at Rs 532.20 with volumes of Rs 55.27 crs. Pharma stocks witnessed positive trend with exception. Dr Reddy was down at Rs 662.40 with volumes of Rs 53.03 crs, Sun Pharma closed up at Rs 1090.40 with volumes of Rs 50.23 crs, Glenmark was up at Rs 681.15 with volumes of Rs 30.73 crs, and Ranbaxy closed up at Rs 399.75 with volumes of Rs 19.04 crs. Banking stocks ended mixed trend. In the Public Sector banks SBI closed down at Rs 1326 with volumes Rs 211.42 crs & Bank Of India closed up at Rs 213.10 with volumes Rs 48.06 crs. In the private sector ICICI Bank closed down at Rs 928.55 with volume of Rs 145.80 crs & Kotak Bank closed up at Rs 607.10 with volumes of Rs 93.75 crs. Auto Stocks witnessed mixed trend. Tata Motors closed down at Rs 726.95 with volumes of Rs.129.55 crs & M&M closed up at Rs 734.10 with volumes of Rs 59.39 crs. While in the 2 wheeler segment stocks, Bajaj Auto closed down at Rs 2195.85 with volumes of Rs 244.35 crs & TVS Motor closed up at Rs 65.10 with volumes of Rs 11.24 crs. Cement Stocks ended down with exception. GACL closed down at Rs 116.05 with volumes of Rs 62.23 crs, ACC closed up at Rs 890.55 with volumes of Rs 36.04 crs, India Cement closed down at Rs 190.50 with volumes of Rs 26.75 crs and Birla Jute closed down at Rs 255.35 with volumes of Rs 2.33 crs. Nifty ended at 4278 up by 17 points.

Friday, May 18, 2007

Good Evening - May 18 2007


Key share indices were up over 1% buoyed by gains in Asian and US indices. Bank shares extended gains from the previous session as analysts upgraded their ratings. SBI, up 3% at Rs 1,322 was the top Nifty gainer. ICICI Bank was up 2.5% at Rs 943 after Credit Suisse upgraded the stock to "neutral" rating from "sell". At 10:35AM, Sensex was 14295.51, up 168.20 points or 1.2%. Nifty was at 4211.05, up 40.00 points or 1%. The CNX Midcap Index and S&P CNX 500 Index were up 1% each. On BSE, advances led declines 3:1 in the morning session. Shares of oil retailers rebounded on a newspaper report the petroleum ministry is mulling a proposal to hike fuel prices due to rising global prices. HPCL was up 2.5% at Rs 305 and BPCL was up 2% at Rs 375. Tata Steel was up 2% at Rs 600 as the company is expected to report 50% on year rise in Jan-Mar net profit. VSNL was up 3% at Rs 467 on plans to enhance the footprint of its Wi-Fi services in India. NALCO, down 1% at Rs 254, was the worst hit on Nifty. Bajaj Auto was down 0.3% at Rs 2,672 ahead of its board meet that will detail the company's Jan-Mar earnings and mull demerger of its financial services and manufacturing business. Delhi-based real estate major Unitech was up 7% at Rs 572 on news of 10 block deals in the stock today. Suzlon Energy was 2% at Rs 1,156 after the company said it would raise $300 mn through foreign currency convertible bonds. The FCCBs have a maturity of 5 years and 1 day, and are convertible at Rs 1,800 a share, a 59% premium to Wednesday's closing price of Rs 1,134 on NSE. In the mid trading session, Markets gained further. At around 12.30PM, Sensex was up 193 points at 14320 levels. Nifty was trading at 4220 level, up 48 points. Though market breadth weakened as the A: D ratio declined to 1.2:1 for overall markets. The A: D ratio was 4.8:1 for Sensex and 6.1:1 for Nifty. Usha Martin was up 2.1% at Rs 247.50. In Q4, its net profit jumped 45% at Rs 29 cr from Rs 20 cr in Q4 last fiscal. The company also announced 1:5 stock split. Spicejet was up 1.8% at Rs 44.40. The airlines will raise $100 mn in Jun-Jul 2008 to fund aircraft buy. The company is fully funded for the current financial year. Unichem was up 0.7% at Rs 264. The company reported 20.5% jump in net profit at Rs 18.8 cr from Rs 13.5 cr in Q4 last fiscal. Orient Paper was up 4.5% at Rs 477. The company’s board will meet on May 24 to consider the price and record date for its Rs 175 cr rights issue. Bajaj Auto recouped losses and gained 2% at Rs 2,729 after it approved plan to demerge its manufacturing and financial services businesses. Bajaj Auto reported Jan-Mar net profit of 3.1 bn, down 11% on year. Shares of metal companies fell as zinc and copper prices declined in Shanghai on oversupply. NALCO and Sterlite Industries were down 1% each. Shares of Patni Computer Systems were up 9% at Rs 517 on talk the company may be bought over by IBM Key shares indices ended up over 1% led by gains in bank, oil and gas shares. Firm trend in No. of Scrips Value (Crs.) Advances 515 9585 Declines 547 2767 Unchanged 28 4 Total 1090 12356 Asian and European markets helped market rise. BSE Auto Index, down 1%, was the sole laggard among BSE sectoral indices, weighed down by 7% fall in Bajaj Auto shares. Bajaj Auto shares plunged 7% to Rs 2,504 on concerns the valuations of its insurance business would come off sharply if its partner Allianz SE hiked stake in the company to 50% from 26% now. Sensex ended at 14299.71, up 172.40 points or 1.2% from Wednesday. Intraday it moved between 14217.31 and 14352.98. Nifty ended at 4219.55, up 48.60 points or 1.2%. Intraday it moved between 4172.10 and 4232.45. Turnover on both the exchanges was roughly Rs 182 bn, compared to Rs 132 bn Wednesday. The CNX Midcap Index and S&P CNX 500 Index ended up 1%. Oil retailers were top gainers on Nifty on a newspaper report the petroleum ministry is mulling a proposal to hike fuel prices by Rs 1-2 per 1 L. HPCL, up 3.4% at Rs 307, was the top Nifty gainer. BPCL was up 3% at Rs 379.5. Banks shares ended up amid news of consolidation in the sector and as analysts upgraded their ratings. SBI was up 3.4% at Rs 1,327 and gained 8% since it got approval Tuesday to dilute its stake in its subsidiary banks to 51%. Tata Steel rose 2% to 598 rupees after it reported Jan-Mar net profit of Rs 11 bn, up 41% from a year ago. Dabur Pharma ended up 4% at Rs 68 after Jan-Mar net profit surged 13 times to Rs 27 mn from Rs 2.1 bn a year ago. Deccan Aviation surged 23% to Rs 145 on buying by hedge funds. Unitech gained 5.5% to Rs 565 on news of 10 block deals in the stock on NSE today. United Spirits surged 9% to Rs 974 after the company Wednesday acquired Glasgow-based Whyte & Mackay for 595 mn pounds. Bajaj Auto shares hogged the limelight today. The stock was slightly down due to the announcement of its demerger plans and Jan-Mar earnings. It shot up 2% after the company approved a proposal to set up two separate companies to split the group's automobile and finance businesses. All automobile businesses will be transferred to Bajaj Holdings and Investment Ltd., and wind power, insurance, consumer finance business to Bajaj Finserv Ltd. However, the share ended down 7%, worst hit on Nifty, after the company said cost pressure would continue for next two quarters. Today, the company posted a 11% on year fall in Jan-Mar net profit at Rs 3 bn. Shares of metal companies ended down as zinc and copper prices declined in Shanghai on oversupply of the metals. Sterlite Industries and NALCO were down 2% each, at Rs 558 and Rs 252, respectively. Siemens India ended down 2% at Rs 1,222 after gaining 3% in the last three sessions. Tech stocks ended up with exception. Infosys was up at Rs 1983.50 with volumes of Rs 423.45 crs, Satyam was up at Rs 452.55 with volumes of Rs 189.45 crs, Patni was up at Rs 514.75 with volumes of Rs 97.49 crs, and Rolta closed down at Rs 442.55 with volumes of Rs 95.19 crs. Pharma stocks witnessed mixed trend. Dr Reddy was up at Rs 678.45 with volumes of Rs 75.11 crs, Cipla closed down at Rs 208.50 with volumes of Rs 45.30 crs, Glenmark was up at Rs 668.05 with volumes of Rs 33.75 crs, and Ranbaxy closed down at Rs 394.75 with volumes of Rs 25.49 crs. Banking stocks ended up. In the Public Sector banks SBI closed up at Rs 1327.15 with volumes Rs 317.83 crs & Bank Of India closed up at Rs 208.10 with volumes Rs 50.64 crs. In the private sector ICICI Bank closed up at Rs 938.05 with volume of Rs 220.23 crs & HDFC Bank closed up at Rs 1042.05 with volumes of Rs 120.87 crs. Auto Stocks ended positive with exception. Tata Motors closed up at Rs 750.60 with volumes of Rs.115.03 crs & M&M closed up at Rs 728.10 with volumes of Rs 96.30 crs. While in the 2 wheeler segment stocks, Bajaj Auto closed down at Rs 2503.90 with volumes of Rs 490.37 crs & Hero Honda closed up at Rs 678.30 with volumes of Rs 8.59 crs. Cement Stocks ended positive. India Cement closed up at Rs 189.85 with volumes of Rs 39.62 crs, GACL closed up at Rs 123.40 with volumes of Rs 36.39 crs, ACC closed up at Rs 888.45 with volumes of Rs 33.86 crs and Shree Cement closed up at Rs 1110 with volumes of Rs 15.56 crs. Nifty ended at 4220 up by 49 points.

KRC Investment Ideas - RPL


KRC Investment Ideas - RPL

KRC Cherry Picks - May 12 2007


KRC Cherry Picks - May 12 2007

Wednesday, May 16, 2007

Good Evening - May 16 2007


Key indices were mixed early today amid volatile trade due to uncertain market direction. Weak cues from Asian and U.S. markets also played spoilsport. At 10:35AM, Sensex was 13976.91, up 12.12 points or 0.1% after touching a low of 13965.86. Nifty was at 4131.80, down 2.10 points or 0.1% after touching a high of 4150.45. The CNX Midcap Index was up 0.1% and S&P CNX 500 Index was down 0.1%. On BSE, advances led declines 1.2:1 in the morning session. HPCL, up 2% at Rs 295, was the top Nifty gainer on hopes the government may hike automobile fuel prices following conclusion of elections in Uttar Pradesh. BPCL was up 1.6% at Rs 372. MTNL, up 2% at Rs 157, was the other major Nifty gainer. Shares of metal companies were down as copper and nickel prices fell Monday on the LME. Sterlite Industries was down 1.5% at Rs 554. Suzlon Energy plunged 6% to Rs 1,173 after the company reported 3.4% on year decline in consolidated net profit for Jan- Mar quarter at Rs 3.6 bn. Voltas was up 2% at Rs 99 after the company reported Jan-Mar net profit of Rs 1.2 bn, up over 4 times from the year ago period. In the mid trading session, indices were down 0.6% on profit booking following weakness in Asian markets. Investors were cautious as a 3.5% fall in the Chinese share market today revived memories of a global sell-off in February, At around 12.50PM, Sensex was at 13910.92, down 54.94 points, or 0.4%. Nifty was at 4107.60, down 26.70, or 0.7%. Suzlon Energy, down 7% at Rs 1,168, was the worst hit on Nifty after consolidated net profit for Jan-Mar fell 3.4% from a year ago. BHEL was up 2% at Rs 546 as the company plans to enhance its manufacturing capacity to 15,000 MW a year with total investment of around Rs 32 bn. Thermax was down 3% at Rs 401 on reports Philadelphia-based water-treatment company Purolite has sued it for allegedly stealing intellectual property. Varun Shipping was 0.4% at Rs 54.60. The company acquired second 16000 BHP AHTSV. Lupin was up 2.1% at Rs 722. The company received USFDA approval for Simvastatin tablets. HOEC slipped 6% at Rs 91 on bad Q4 results. The company reported Net loss of Rs 9.82 crore vs loss of Rs 13.8 crore last year. Net sales stood at Rs 24.9 crore versus Rs 30 crore. Satyam was down 1.6% at Rs 454 on stronger rupee. Its BPO arm Nipuna has entered into an alliance with Phoenix Marketing International, one of the fastest growing marketing services firms in the United States, to launch a cost-effective, highly predictive modeling methodology - Customer Intelligence Program (CIP). Pyramid Saimira was up 0.8% at Rs 336. The company entered into a commercial arrangement with Vision Media Group (VMG) to acquire and distribute about 10 to 12 films from VMG. No. of Scrips Value (Crs.) Advances 694 7007 Declines 367 2142 Unchanged 26 16 Total 1087 9165 Key share indices ended down 0.3% as shares of technology companies extended losses for the second straight session due to a rising rupee. The session was volatile due to uncertain market direction. Key shares were also weighed down by weakness in overseas markets. Chinese market ended down 3.5% today on fears regulators would move in to cool the heated market. On Feb 27, the Chinese stock market fell 9% on fears its government may take measures to cool off equity markets. The fall in China triggered a sell-off in other markets across the world, including India. Sensex ended at 13929.33, down 36.53 points or 0.3% from Monday. Intraday it moved between 13885.46 and 14023.86. Nifty ended at 4120.30, down 14.00 points or 0.3%. Intraday it moved between 4102.45 and 4150.45. Turnover on both the exchanges was roughly Rs 132.3 bn, compared to Rs 126 bn Monday. The CNX Midcap Index was up 0.6% and S&P CNX 500 Index ended down 0.1%. HPCL, up 5% at Rs 302, was the top Nifty gainer on hopes the government may hike automobile fuel prices following conclusion of elections in Uttar Pradesh. BPCL rose 3% to Rs 376. BHEL was up 3% at Rs 2,523 as the company plans to enhance its manufacturing capacity to 15,000 MW a year with total investment of around Rs 32 bn. Sterlite Industries, which was down 1.5% earlier in the session, recouped losses and ended up 2% at Rs 575. SBI was up 1.8% at Rs 1,227. The Lok Sabha today passed a bill that will allow its seven associate banks to raise their authorized capital to Rs 5 bn, and make a provision for the parent bank to cut its minimum holding in these banks to 51% from the current 55%. Lupin gained 1% at Rs 716 on approval in the US for its abbreviated new drug application for Simvastatin tablets used for treatment of high cholesterol. Shringar Cement surged 20% to Rs 65 ahead of it Jan- Mar earnings and on talk of private placement at 8-10% premium to current market price. Suzlon Energy shares tumbled 9% to Rs 1,141 after its net profit for Jan-Mar quarter fell 3.4% on year to Rs 3.6 bn due to appreciation in the rupee. The rupee has risen more than 8% against the U.S. dollar so far in 2007.Technology shares fell on the strong rupee. Satyam Computer Services ended down 2% at Rs 453 and Wipro was down 1.7% at Rs 535. ONGC ended down 2% at Rs 889. The government today said the panel to select chairman and managing director of ONGC would meet shortly. GACL ended down 0.2% at Rs 123.5. Ambuja Cements changed hands in two block deals on BSE. of 1.74 mn shares. Reliance Industries ended down 1.3% at Rs 1,599 despite news the company has discovered gas in D6 Block in offshore Krishna Godavari basin. Tech stocks ended down. Infosys was down at Rs 1973.45 with volumes of Rs 215.28 crs, TCS was down at Rs 1238.05 with volumes of Rs 129.53 crs, Rolta was up at Rs 440.60 with volumes of Rs 90.10 crs, and Wipro closed down at Rs 535.05 with volumes of Rs 83.47 crs. Pharma stocks witnessed positive trend with exception. Dr Reddy was down at Rs 658.25 with volumes of Rs 104.86 crs, Cipla closed up at Rs 211 with volumes of Rs 40.37 crs, Ranbaxy was up at Rs 395.40 with volumes of Rs 37.54 crs, and Orchid Chemical closed up at Rs 274 with volumes of Rs 24.08 crs. Banking stocks showed buying opportunity. In the Public Sector banks SBI closed up at Rs 1227.45 with volumes Rs 269.21 crs & Bank Of India closed up at Rs 204.40 with volumes Rs 80.03 crs. In the private sector ICICI Bank closed up at Rs 886.85 with volume of Rs 151.77 crs & HDFC Bank closed up at Rs 1011.05 with volumes of Rs 55.24 crs. Auto Stocks ended negative. M&M closed down at Rs 716.25 with volumes of Rs.59.61 crs & Tata Motors closed down at Rs 714.35 with volumes of Rs 46.74 crs. While in the 2 wheeler segment stocks, Bajaj Auto closed down at Rs 2635.70 with volumes of Rs 78.02 crs & Hero Honda closed down at Rs 697.60 with volumes of Rs 14.04 crs. Cement Stocks witnessed mixed trend. GACL closed up at Rs 123.40 with volumes of Rs 61.49 crs, ACC closed up at Rs 875.80 with volumes of Rs 41.34 crs, India Cement closed down at Rs 183 with volumes of Rs 39.23 crs and Birla Jute closed down at Rs 233.75 with volumes of Rs 1.11 crs. Nifty ended at 4120 down by 14 points.

Tuesday, May 08, 2007

Prabhudas Lilladher - Jindal Saw, KRC - Between the Lines - Glaxo


Prabhudas Lilladher - Jindal Saw
KRC - Between the Lines - Glaxo

Good Evening - May 08 2007


Key indices were up nearly 1% buoyed by the firm trend in Asian and U.S. markets amid speculation the US Federal Reserve would leave interest rates unchanged at its meet Wednesday. Oil retailers were top gainers on Nifty, as crude oil prices Friday tumbled below $64 a barrel on New York Mercantile Exchange due to rising US inventories. At 10:30AM, Sensex was 14022.08, up 87.81 points or 0.7%. Nifty was at 4145.55, up 28.50 points or 0.7%. The CNX Midcap Index was up 0.5% and S&P CNX 500 Index was up 0.7%. On BSE, advances led declines 3:1 in the morning session. BPCL and HPCL, up over 3% each, at Rs 287 and Rs 345 respectively, were top Nifty gainers. Reliance Industries, which shed 3% on Friday, was up 2% at Rs 1,614. Reliance Industries will appeal in a day or two against a court order that restrains it from selling gas intended for Reliance Natural Resources, to a third party. Technology shares were major laggards on Nifty amid concern the earnings in the sector would be hit as the rupee has appreciated 9% against the dollar so far this year. Satyam Computer Services, down 1% at Rs 465, was the worst hit on Nifty. Infosys Technologies was down 0.6% at Rs 2,058. ONGC was down 1% at Rs 918. A newspaper report today said the government is considering a proposal to appoint an independent consultant to assess the level of technology employed by the company. Shares of Tech Mahindra were up 1.3% at Rs 1,670.10 ahead of its Jan-Mar earnings to be detailed after markets hours today. Key indices were off highs midway through the session on decline in technology shares. Sensex, Nifty were up 0.3% each compared to 1% earlier in the day. However, gains in index heavyweight Reliance Industries and oil retailers kept indices in positive territory. At around 1.20PM, Sensex was at 13957.67, up 25.42 points. Nifty was at 4129.00, up 11.65 points. Oil retailers were top gainers on Nifty as crude oil eased below $64 a barrel. BPCL and HPCL were up 2.5% each. Technology shares fell, as the rupee remained strong. Satyam Computer Services was down 2% at Rs 462. Shares of Deccan Aviation were down 4.9% at Rs 109 on profit sales, after the recent rally on the back of reports Vijay Mallya promoted-Kingfisher Airlines mulls buyout of low-cost airline Air Deccan. Maruti Udyog was up 0.4% at Rs 810.80 after the company priced its SX4 sedan at Rs 618,000-Rs 724,000. Shares of GSFC fell 6.4% to Rs 169 after it Saturday reported a 50% year-on-year decline in Jan-Mar net profit to Rs 512 mn. Key indices made a firm start today buoyed by firm Asian and U.S. markets but could not hold on to gains and ended down 0.4% on profit sales. Sensex ended at 13879.25, down 55.02 points, or 0.4%, from Friday. It shot up to 14067.07 earlier in the day. Nifty ended at No. of Scrips Value (Crs.) Advances 429 4195 Declines 615 4471 Unchanged 35 6 Total 1079 8672 4111.15, down 6.20 points, or 0.2%. It touched an intraday high of 4157.65. Turnover on both the exchanges was roughly Rs 131.6 bn compared with Rs 136.7 bn Friday. CNX Midcap Index touched an all-time-high of 5,393.15 points. It ended down 0.6% at 5313.65 points. S&P CNX 500 Index ended down 0.3% BSE Oil and Gas Index ended up 1%, the top gainer among BSE sector indices, on rise in buying in oil retailers and index heavyweight Reliance Industries. Oil retailers were top Nifty gainers as crude oil prices fell for the sixth session and the rupee strengthened to a fresh nine-year high against the dollar. A stronger rupee lowers the cost of crude import for oil refiners. BPCL and HPCL ended up 4% each, at Rs 350 and Rs 289, respectively. Reliance Industries ended up 1.5% at Rs 1,607 on value buying after falling 3% in the previous session. Reports that the company will appeal this week against Bombay High Court's order that restrained it from selling gas pledged to Anil Ambani's Reliance Natural Resources offered respite to investors. Patel Engineering gained 6% at Rs 368 and Pratibha Industries rose 5% to Rs 2,219 after a joint venture of the two companies won a Rs 1.57 bn construction order from the Brihanmumbai Municipal Corp. Bosch Chassis Systems India ended up 1% at Rs 986 after it announced a 1-for-1 bonus share issue. Technology shares were major laggards on Nifty as the rupee touched nineyear highs against the dollar. Wipro ended down 3% at Rs 553 and Satyam Computer Services ended down 2% at Rs 461. BSE IT Index, down 1.4%, was the worst hit among BSE indices. PNB, down 3% at Rs 494, was the worst hit on Nifty. It has raised interest rates for home loans above Rs 2 mn by 100 basis points. Maruti Udyog was up ended down 0.3% at Rs 805 on profit sales. The company priced its SX4 sedan at Rs 618,000-Rs 724,000. Hindalco Industries ended down 2% at Rs 145. The company Friday reported Jan- Mar net profit at Rs 7.2 bn, up 15% from a year ago. Hindustan Zinc that rose 3% after it Saturday hiked prices of its primary high-grade products by Rs 6,900 per 1 tn to Rs 180,900, ended down 2% at Rs 723 on profit sales. GSFC fell 7% to Rs 169 after it Saturday reported a 50% YoY decline in Jan-Mar net profit to 512 mn. Tech Mahindra ended down 1.4% at Rs 1,625 ahead of its Jan-Mar earnings to be detailed after markets hours today. Tech stocks ended down with exception. Infosys was down at Rs 2041.85 with volumes of Rs 198.34 crs, TechM was down at Rs 1625.10 with volumes of Rs 196.73 crs, TCS was down at Rs 1272.90 with volumes of Rs 176.93 crs, and Rolta closed up at Rs 474.60 with volumes of Rs 154.06 crs. Pharma stocks witnessed mixed trend. Ranbaxy was up at Rs 391.40 with volumes of Rs 51.90 crs, Dr Reddy closed down at Rs 703.55 with volumes of Rs 36.82 crs, Cipla was down at Rs 214.85 with volumes of Rs 34.83 crs, and Sun Pharma closed up at Rs 1012.50 with volumes of Rs 10.16 crs. Banking stocks showed negative trend with exception. In the Public Sector banks SBI closed down at Rs 1119.65 with volumes Rs 85.26 crs & PNB closed down at Rs 493.75 with volumes Rs 25.64 crs. In the private sector UTI Bank closed up at Rs 506.60 with volume of Rs 235.64 crs & ICICI Bank closed down at Rs 843.75 with volumes of Rs 138.89 crs. Auto Stocks ended down with exception. Tata Motors closed down at Rs 728.30 with volumes of Rs.132.12 crs & M&M closed down at Rs 775.75 with volumes of Rs 27.33 crs. While in the 2 wheeler segment stocks, Baja Auto closed down at Rs 2566.85 with volumes of Rs 27.27 crs & Hero Honda closed up at Rs 706.05 with volumes of Rs 11.49 crs. Cement Stocks witnessed negativity with exception. GACL closed down at Rs 120.10 with volumes of Rs 66.27 crs, India Cement closed down at Rs 183.80 with volumes of Rs 52.44 crs, ACC closed up at Rs 862.25 with volumes of Rs 46.60 crs and Birla Jute closed down at Rs 239.05 with volumes of Rs 1.39 crs. Nifty ended at 4111 down by 6 points.

Monday, May 07, 2007

KRC - Between the Lines - Maruti Udyog


KRC - Between the Lines - Maruti Udyog

Good Evening - May 07 2007


Key indices were marginally down today on profit sales in shares of technology companies and index heavyweight Reliance Industries. The session was volatile as investors booked profits after the 1.5% rise in the previous session and on caution ahead of the weekend. Shares of cement companies were top Nifty gainers after the government Thursday modified the duty structure for the commodity and replaced the fixed Rs 600 per 1 tn excise duty with a 12% ad valorem rate on retail sales price. ACC and Grasim Industries were up 2% each, at Rs 869 and Rs 2,536 respectively. At 10:39AM, Sensex was 14060.10, down 18.11 points or 0.1%. Nifty was at 4145.15, down 5.70 points or 0.1%. The CNX Midcap Index was up 0.4% and S&P CNX 500 Index was up 0.2%. On BSE, advances equalled declines in the morning. Shares of technology companies were major laggards on Nifty as investors booked profits after two sessions of gains as the rupee strengthened against the dollar. Satyam Computer Services at Rs 472 and Wipro at Rs 564 were down 1% each. Reliance Industries, down 2% at Rs 1,595, was the worst hit on Nifty on profit sales after rising 4% in the previous session. SBI was up 2% at Rs 1,149 on hopes the bank would report robust Jan-Mar earnings. In the mid trading session, indices were down nearly 1% amid choppy trade on profit sales and as heavyweight Reliance Industries fell 2.5% on a court order preventing it from selling natural gas committed to Reliance Natural Resources to a third party. Market briefly recovered and was up 0.2% after inflation rate for week to Apr 21 fell to 5.77% from 6.09% week ago and 5.87% estimated, but succumbed to profit sales later. At around 1.05PM, Nifty was at 4123.50, down 27.35 points or 0.7%. Sensex was at 13975.91, down 103.47 points or 0.7%. Consumer durables shares rose on removal of customs duty on refrigerated trucks used for transporting perishable food items. Technology shares fell on appreciation in rupee and as tax on employee stock options will remain. Satyam Computer Services was down 2%. Shares of HLL were up 1.4% at Rs 198.50 after Finance Minister P. Chidambaram said the government will not re impose customs duty on palm oil till its price stabilises. Shares of IndusInd Bank were up 6.9% at Rs 48.50 on talk the bank is likely to sell some stake to a private entity. Shares of PSL were up 4.6% at Rs 228 on news its joint venture with the U.S.-based A&L Group has got 382 ha land in Mississippi, U.S., to set up a greenfield facility for making steel pipes. Key indices shed 1% today amid volatility, with Sensex closing below the level of 14000 on profit sales and index heavyweight Reliance Industries declining by nearly 3%. Shares recovered briefly and were up 0.2% after the inflation rate for the week to Apr 21 fell to 5.77% from 6.09% week ago, lower than the estimate of 5.87%, but shed gains soon after No. of Scrips Value (Crs.) Advances 410 4726 Declines 644 4654 Unchanged 27 20 Total 1081 9400 Positive cues from Asian markets could also not give support to domestic equities. Key Asian indices touched new highs, buoyed by firm metal prices. Sensex ended at 13934.27, down 143.94 points, or 1.0% from Thursday. Intraday, it moved between 13912.92 and 14189.21 points. Nifty closed at 4117.35, down 33.50 points, or 0.8%. Intraday, it moved between 4109.70 and 4180.90 points. Turnover on BSE and NSE combined was roughly Rs 136.7 bn, almost unchanged from Rs 137.5 bn on Thursday. The CNX Midcap Index was up 0.2%, while the S&P CNX 500 Index was down 0.6%. Reliance Industries fell on profit sales after the Bombay High Court Thursday restrained the company from selling 28 mn cu m per day of natural gas - committed to Reliance Natural Resources - to a third party. The RIL stock ended 2.6% down at Rs 1,584. Shares of information technology companies also declined, as investors booked profits with the rupee appreciating against the dollar. Satyam Computer Services was down 2% at Rs 470, while TCS shed 1% at Rs 1,273. BPCL, down 3% at Rs 336, was the worst-hit among Nifty stocks on profit sales. The stock had gained 4% on Thursday. BPCL will sell around Rs 7 bn worth of oil bonds in the secondary market today. HDFC ended 2.5% down at Rs 1,638. HDFC Thursday reported Jan-Mar net profit of Rs 5.5 bn, up 29% YoY. Cement shares, which were top Nifty gainers earlier in the day, ended down on profit sales. Grasim Industries and Ambuja Cements ended up 1% each, at Rs 2,475 and Rs 120. ACC shares managed to end up 1% at Rs 859, but off the day's high of Rs 880. Cement shares rose in early trade after the government Thursday replaced the fixed excise duty of Rs 600 per 1 tn with a 12% ad valorem duty to be paid on the retail sales price of cement. GAIL India, up 4% at Rs 310, was top Nifty gainer. Index heavyweight, ONGC, ended up 1% at Rs 929. The company Thursday said it will resume talks on the Barmer refinery with the Rajasthan government. Cipla shares ended 3% up at Rs 217 on value buying. The stock has fallen 16% since the company on Apr 27 reported a 34% YoY decline in Jan-Mar net profit due to the rise in raw material cost. Hindalco Industries rose 2% at Rs 148 on a 15% YoY rise in Jan-Mar net profit at Rs 7.2 bn. Reliance Natural Resources gained 3% at Rs 27 on hopes it will get more than the required gas from Reliance Industries, and can sell the excess gas in the open market at a higher rate, Shares of Videocon Industries, Unitech, and Aditya Birla Nuvo ended up 3-7% after they were included in the MSCI India index. Tech stocks ended mixed trend. TechM was up at Rs 1648.90 with volumes of Rs 236.99 crs, TCS was down at Rs 1273.05 with volumes of Rs 228.43 crs, Infosys was down at Rs 2071.90 with volumes of Rs 190.12 crs, and Rolta closed up at Rs 439.90 with volumes of Rs 71.96 crs. Pharma stocks witnessed mixed trend. Cipla was up at Rs 217.35 with volumes of Rs 61.53 crs, Ranbaxy closed down at Rs 381.75 with volumes of Rs 28.69 crs, Dr Reddy was up at Rs 719.05 with volumes of Rs 26.51 crs, and Sun Pharma closed down at Rs 1001.45 with volumes of Rs 16.68 crs. Banking stocks showed mixed trend. In the Public Sector banks SBI closed up at Rs 1128.30 with volumes Rs 157.72 crs & Bank Of India closed down at Rs 194.35 with volumes Rs 58.87 crs. In the private sector ICICI Bank closed down at Rs 855.85 with volume of Rs 197.15 crs & UTI Bank closed up at Rs 480.10 with volumes of Rs 138.46 crs. Auto Stocks ended down with exception. Tata Motors closed down at Rs 731.50 with volumes of Rs.100.25 crs & M&M closed down at Rs 790.05 with volumes of Rs 55.82 crs. While in the 2 wheeler segment stocks, Baja Auto closed up at Rs 2567.40 with volumes of Rs 63.77 crs & Hero Honda closed down at Rs 699.45 with volumes of Rs 13.70 crs. Cement Stocks witnessed positive trend with exception. GACL closed down at Rs 120.25 with volumes of Rs 81.94 crs, India Cement closed up at Rs 184.20 with volumes of Rs 69.59 crs, ACC closed up at Rs 859.50 with volumes of Rs 55.15 crs and Birla Jute closed up at Rs 244 w i t h v o l u mes of Rs 4.08 crs. Nifty ended at 4117 down by 34 points.