Adjust to the wind, avoid a windfall!

“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”

The winds of political change have been blowing for some time. Large corporate bodies are quick to make necessary adjustments. It was no surprise that Reliance Chairman Mukesh Ambani chose to visit New Delhi and meet important government functionaries to express his point of view on the issue of windfall tax. In a choppy market, Reliance managed to recover sharply.

Market participants too have to adjust to the changing winds. It is better to take a longer term view because by the time you try to make quick adjustments, the direction of the wind may change. Some buying may be seen in mid cap counters. HUL could be among the safer stocks for the time being.

We understand a handful of people may be active on select counters. Some buying is also happening on the hopes that if the government sails through with a confidence vote, the markets will give a thumbs’ up and see some short term spurt. These are high risk events. With no major results expected today, indices may swing in and out of negative territory.

Ranbaxy may see some recovery after the company clarified that its deal with Daiichi is on track. Earlier reports stated production at three facilities of Ranbaxy Laboratories could be banned if charges of fraud, forging of documents and manufacturing from unapproved locations leveled by USFDA are proved.

Last weekend it was news about Fannie Mae and Freddie Mac and IndyMac which haunted the bulls on Wall Street. Now fears that Merrill Lynch and Citigroup will report another quarterly loss is keeping up the pressure. As if all this was not enough, National City and Washington Mutual(WaMu) witnessed sharp erosion as WaMu crashed nearly 35%. A Lehman Brothers note said it may need to substantially boost its reserves over the rest of the year to cover home loan losses.

The Dow Jones fell 0.4% and closed at its lowest point since July 21, 2006. The Standard & Poor's 500 index fell 0.9% and closed at June 2006 lows. The Nasdaq dropped 1.2% but managed to stay above its March lows. Asian stocks fell yet again led by financial companies, on mounting concern credit-market losses will widen. Japan's Nikkei 225 Stock Average fell 1.4% to 12,830.20.

Oil prices, which swung between $142.49 and $146.37 a barrel ended flat. Light, sweet crude for August delivery rose 10 cents to settle at $145.18 a barrel on the New York Mercantile Exchange trading. On Friday it had hit a record trading high of $147.27.

Sun Pharmaceutical announced its subsidiary, Alkaloida Chemical has extended the expiration date of the tender offer for purchase of all outstanding Ordinary Shares of Taro Pharmaceutical Industries Ltd. (Taro). The Offer has been extended to September 2, 2008. Earlier, a report stated Templeton Asset Management – a prominent shareholder of Taro has dumped Sun Pharma’s unsolicited tender offer.

Steel companies could see some action on reports that they are considering 15% hike in prices to offset rising raw material costs. Meanwhile, the railways has reportedly decided to give a 25% discount on domestic iron ore freight booked to ports in a bid to help steel companies.

Among the major bulk deals, Merrill Lynch sold 200,000 shares of Selan Exploration at an average price of Rs217.

Insider trades:

Sakthi Sugars: M.Manickam, Vice Chairman & Managing Director of the company from the market has purchased 10,499 equity shares on 10th July 2008.

Gateway Distriparks: Kirpa Ram Vij, Director of the company has purchased 15,000 shares from the open market on 9th July 2008.

Indian bourses ended on a mixed note on Monday with Nifty closing almost flat. However, benchmark Sensex further lost over 130 points after losing over 450 points on Friday.

Bulls were able to hold on to their gains for major part of the day, but lost ground towards the fag end of the session.

The down fall could be attributed to selling witnessed in IT heavyweights like Infosys, Satyam and TCS. Even the broader Sectoral indices i.e. the Mid-Cap and the Small-Cap indices were under pressure.

Finally the Sensex lost 139 points to close at 13,330 and the Nifty slipped 9 points to close flat at 4,039.

Axis Bank slipped by 5% to Rs635. The company announced its Q1 results with net profit at Rs3.30bn (up 88.5%) and interest income at Rs22.70bn (up 47%). The scrip touched an intra-day high of Rs692 and a low of Rs627 and recorded volumes of over 17,00,000 shares on BSE.

Shares of Ranbaxy fell over 10% to Rs475 after the U.S. federal government said that it was investigating whether Ranbaxy Laboratories Ltd. destroyed reports it was required to keep, inaccurate data and failed to meet quality control specifications in manufacturing the generic drugs it sells. The scrip touched an intra-day high of Rs522 and a low of Rs470 and recorded volumes of over 28,00,000 shares on BSE.

HCL Technologies plunged by 6% to Rs225 after the company said that its foreign-exchange losses may total as much as US$77mn in the year ended June 30. The scrip touched an intra-day high of Rs229 and a low of Rs206 and recorded volumes of over 3,00,000 shares on BSE.

Era Infra gained by 1.2% to Rs570 after the company announced that it secured civil, structural & architectural work worth Rs955mn from BHEL for main power block along with its Auxiliaries and BOP for 1 x 500 MW Thermal Power Station, Extension Unit # 6, Gujarat State Electricity Corporation Ltd at Ukai, Dist. Tapi, Gujarat. The scrip touched an intra-day high of Rs573 and a low of Rs545 and recorded volumes of over 10,000 shares on BSE.

NDTV surged by over 2% to Rs405 after 6.1% of the company’s equity changed hands in a single trade. As many as 3.8mn shares were traded at Rs447.8 per share on BSE. The scrip touched an intra-day high of Rs447.80 and a low of Rs397 and recorded volumes of over 43,00,000 shares on BSE.

Sterlite Technologies advanced by 1.5% to Rs200 after the company announced that it secured a contract worth US$15.5mn in Africa and SAARC. The scrip touched an intra-day high of Rs205 and a low of Rs191 and recorded volumes of over 44,000 shares on BSE.

Madhucon Projects rallied by over 6% to Rs307 after the company announced that it secured EPC contract worth Rs9.89bn for setting up of Thermal Power Plant in Krishnapatnam South, Nellore District of Andhra Pradesh. The scrip touched an intra-day high of Rs332 and a low of Rs290 and recorded volumes of over 22,000 shares on BSE.

Reliance Industries has hired 17 banks to arrange for a US$1bn debt facility to fund its expansion projects. (BS) Production at three facilities of

Ranbaxy Laboratories could be banned if charges of fraud, forging of documents and manufacturing from unapproved locations leveled by USFDA are proved. (BS)

The ministry of broadcast and information has sent a show cause notice to Bharti Group’s DTH subsidiary to question its compliance with FDI norms. (BS)

- HDFC is raising Rs5bn via private placement of bonds with LIC. (BL)

- SBI has recovered bad loans worth ~Rs20bn during April-June 2008. (ET)

- NTPC may bid to acquire thermal plants in Oman. (FE)

- NTPC would get a term loan of Rs100bn from PFC to finance its debt portion of big ticket projects for XI plan. (FE)

- PFC and Reliance Infra JV has received approval for transmission licence from CERC. (FE)

- Templeton Asset Management – a prominent shareholder of Taro has dumped Sun Pharma’s unsolicited tender offer. (ET)

- Indian Hotels is believed to be exploring the Philippines market to set up hotels and resorts there. (DNA)

- REC is keen on picking up stakes in upcoming power plants in coal-rich states. (DNA)

- Indian Oil Corp expects the Government to issue letters promising oil bonds for Q1 FY09. (DNA)

- IFCI will bid to buy non-performing assets of the now-shut IIBI Ltd. (DNA)

- Jet Airways is likely to increase fuel surcharge by up to Rs200 per sector for domestic flights. (ET)

- The government has permitted Jet Airways to commence a daily flight from Mumbai and Delhi to Saudi Arabia. (BL)

- BSNL plans to invest Rs50bn in its Wimax project. (BS)

- Lafarge plans to invest US$1bn over the next five years in India to raise its cement manufacturing capacity to 20mn tons. (BS)

- As per South African media, MTN could go back to discussions with Bharti Airtel. (BS)

- Ispat Industries is set to get an iron ore mine in Jharkhand. (BS)

- The Navratna status of HPCL and BPCL will be retained. (FE)

- Netherlands Development Finance has extended an ECB worth US$25mn to Alok Industries. (BS)

- Blue Star has got an order worth Rs1.04bn from Delhi Metro Rail Corp Ltd for air-conditioned of seven metro stations. (DNA)

- US-based telecom equipment vendor UTStarcom has entered into a new deal with Aksh Optifibre for expansion of the latter’s Internet protocol TV services. (DNA)

- NIIT has joined hands with global electronic testing firm Pearson VUE to offer IT and non-IT tests for students and professionals across the country. (DNA)

- Union Bank of India and Belgian firm KBC Asset Management Company have entered into a JV to set up a mutual fund in India. (ET)

- Union Bank of India has projected a 25% growth in business for the current fiscal. (FE)

- HCL Comnet, a subsidiary of HCL Technologies announced a five-year, RS600mn network outsourcing deal with Union Bank of India. (ET)

- Sterlite Technologies has bagged three contracts worth US$15.5mn in Asia and Africa. (BS)

- SRF is going to acquire South Africa based Industex Technical Textiles for a sum of Rs200mn. (BS)

- Siemens has bagged a Rs2bn contract from Ceylon Electricity Board, Sri Lanka. (BS)

- BEML has secured orders for Rs345mn from African countries Tunisia and Malawi. (BS)

- Madhucon Projects has bagged Rs9.89bn order for setting up a thermal power plant in Andhra Pradesh. (BL)

- Vakrangee Softwares has bagged a electoral project in Maharashtra for the delimitation exercise. (ET)

- RPG Group’s retail venture - Books and Beyond plans to roll out another 10-12 stores over the next 6-8 months and targets Rs1.5-2bn revenues over the next 18-24 months. (ET)

- Jubilant Biosys, a subsidiary of Jubiliant Organosys has announced a drug discovery partnership deal with US-based biotech company Amgen Inc. (BL)

- Emaar Properties has decided to invest US$150mn into specific projects of Emaar MGF Land Ltd, the Indian joint venture between MGF Development Ltd and itself. (BL)

Economic Front Page

- Steel companies are considering 15% hike in prices to offset rising raw material costs. (BS)

- Production from Panna-Mukta gas field is expected to be normalized in the next two-three days. (BL)

- Indirect tax collections grew 9.2% in June 2008. (BS)

Axis Bank

Axis Bank

Axis Bank

Axis Bank

Today's Pick - Ambuja Cements

We recommend a buy in Ambuja Cements from a short-term perspective. From the charts of Ambuja Cements we see that the stock has been on an intermediate-term downtrend from its life-time high of Rs 160 (recorded on December 4, 2007). However, this downtrend got arrested at around Rs 70 two weeks back and reversed direction. We also note that this down trend has retracted 61.8 per cent fibonacci retracement level of its prior long-term bull run and has found support recently. The stock has been moving up from early July. This reversal has been supported by positive divergence in daily relative strength index (RSI) and daily moving average convergence and divergence (MACD). The daily RSI is rising in the neutral zone and the weekly RSI has recovered from the oversold region. The MACD is signalling a buy. The stock crossed over the 21-day moving average on July 14. We are bullish on the stock in the short-term. We expect the stock’s current up move to continue until it hits our price target of Rs 92 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 78.

via BL

A bright day for bullion metals

Gold’s appeal as a safe investment tool increases further

Traders ran to acquire gold today, Monday, 14 July, 2008 as the metal’s appeal as a safe-haven increased all the more after tensions intensified at Middle East and also as the US Market continued to cripple with the financial crisis. Gold is typically seen as a safe-haven investment and its appeal increases during times of heightened geopolitical tensions. The increase in energy costs also generally increase demand for the precious metal as a hedge against inflation. Silver prices gained for the day.

Comex Gold for August delivery rose $13.1 (1.4%) to close at $973.7 ounce on the New York Mercantile Exchange. Prices climbed to a high of $975.2 during intra day trading. Last week, it ended higher by $27 (2.8%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.

It was reported today that Israeli warplanes held maneuvers over Iraq, possibly preparing for a strike against Iran. Last week, Iran test fired more missiles on Thursday, after testing missiles the day before that could reach Israel. Iran is the world's fourth-largest exporter of crude oil.

At the currency markets on Monday, the dollar pared most of its gains as the government's weekend rescue of Fannie and Freddie highlighted fears about the U.S. financial sector. The dollar index which tracks the performance of the greenback against a basket of other major currencies, edged up 0.1% to 71.96.

In the crude market on Monday, crude oil was little changed amid concern that supplies from Brazil may be disrupted and as the dollar strengthened against the euro, reducing the appeal of commodities as a currency hedge for investors. Crude for August delivery settled up 10 cents at $145.18 a barrel on the New York Mercantile Exchange.

The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.

Gold prices ended June, 2008 with a gain of 4.1%. The yellow metal ended second quarter with a marginal gain of 0.7%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, for April, prices closed lower by 6.3%.

This year, gold prices have gained 16% till date against a 5.5% drop for the dollar against the euro. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.

On Monday, Comex silver futures for September delivery gained 43 cents (2.3%) to $19.25 an ounce. Silver has gained 29% in 2008 till date. For the second quarter, it gained a paltry 1.4%.

Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.

During last week of June, Federal Reserve yesterday sharpened its focus on inflation, saying that the upside risks to inflation have increased. Fed held its target for short-term interest rates steady at 2%.

Since last September, Fed has axed interest rates seven times and brought it down to 2%. On the other hand, after keeping interest rates unchanged at 4% since June, 2007, ECB hiked the same to 4.25% last month.

Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. In 2006, silver had jumped 46% while gold gained 23%.

At the MCX, gold prices for August delivery closed higher by Rs 129 (0.96%) at Rs 13,482 per 10 grams. Prices rose to a high of Rs 13,520 per 10 grams and fell to a low of Rs 13,245 per 10 grams during the day’s trading.

At the MCX, silver prices for September delivery closed Rs 451 (1.7%) higher at Rs 26,709/Kg. Prices opened at Rs 26,220/kg and rose to a high of Rs 26,848/Kg during the day’s trading.

Crude settles almost unchanged

Prices witness extreme volatility as employees at Brazil’s oil company strike

Crude oil was little changed today, Monday, 14 July, 2008 amid concern that supplies from Brazil may be disrupted and as the dollar strengthened against the euro, reducing the appeal of commodities as a currency hedge for investors. Prices witnessed considerable volatility throughout the day.

Crude-oil futures for light sweet crude for August delivery today closed at $145.18/barrel (higher by $0.10/barrel or 0.01%) on the New York Mercantile Exchange. It fell $2.59 to an intraday low of $142.49 in overnight electronic trading, but also rose to an intraday high of $146.37. Last week, prices gained $0.21 (0.2%).

Employees of Petroleo Brasileiro SA, Brazil's state oil company, began a five- day strike in an area home to more than 80% of the country's output.

Crude prices gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. It ended June 2008 higher by 9.9%. Prices are 105% higher than a year ago. For the year, crude is up by 44% till date.

At the currency markets on Monday, the dollar pared most of its gains as the government's weekend rescue of Fannie and Freddie highlighted fears about the U.S. financial sector. The dollar index which tracks the performance of the greenback against a basket of other major currencies, edged up 0.1% to 71.96.

Against this backdrop, August heating oil fell 1.2 cent (0.3%) to $4.065 a gallon and August natural gas edged up 5.5 cents, or 1.5%, to $11.959 per million British thermal units. August reformulated gasoline settled at $3.558 a gallon, down slightly.

At the MCX, crude oil for July delivery closed at Rs 6,206/barrel, higher by Rs 7 (0.11%) against previous day’s close. Natural gas for July delivery closed at Rs 511.9/mmbtu, higher by Rs 0.3/mmbtu (0.05%).

Infosys Technologies, HCL Technologies, Biocon, India Economy, India Telecom

Infosys Technologies, HCL Technologies, Biocon, India Economy, India Telecom

Allied Digital Services

Allied Digital Services

Eveninger - July 14 2008

Eveninger - July 14 2008

BSE Bulk Deals to Watch - July 14 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
14/7/2008 524412 AAREY DRUGS HARDIK M MITHANI B 35429 60.45
14/7/2008 532919 ALLIED COMP MANJU CONSULTANCY CO. B 100000 20.88
14/7/2008 511664 BGIL FL TEC CHETAN DOGRA S 62500 17.05
14/7/2008 500132 EMPEE SUG CH EMPEE HOLDINGS LTD B 366115 8.93
14/7/2008 500132 EMPEE SUG CH BLUE CHIP TRADING CO S 240000 8.92
14/7/2008 532996 FIRST WIN OPG SECURITIES PVT LTD B 153383 105.89
14/7/2008 532996 FIRST WIN PIONEER MERCHANTILE LTD B 100000 105.36
14/7/2008 532996 FIRST WIN CHANDRA FIN. SERV. PVT. LTD B 99324 106.54
14/7/2008 532996 FIRST WIN OPG SECURITIES PVT LTD S 153383 105.90
14/7/2008 532996 FIRST WIN SOPHIA GROWTH A SHARE CLASS OF SOMERSET INDIA FUND S 525000 105.02
14/7/2008 532996 FIRST WIN CHANDRA FIN.SERV. PVT. LTD S 99324 106.05
14/7/2008 532985 KOTAK SENSEX EDELWEISS SECURITIES LTD S 11237 133.26
14/7/2008 532998 LOTUS EYE REAL MARKETING PVT LTD. B 300000 38.75
14/7/2008 532998 LOTUS EYE N D NISSAR B 130507 38.42
14/7/2008 532998 LOTUS EYE MEENA NITESH THAKUR B 141413 38.67
14/7/2008 532998 LOTUS EYE N D NISSAR S 130507 38.31
14/7/2008 532529 NDTV LTD. GS MACE HOLDINGS LTD B 4030376 447.90
14/7/2008 532529 NDTV LTD. RRPR HOLDING PRIVATE LIMITED S 3803728 447.80
14/7/2008 532606 PAREKH ALUM P R TRADERS B 94174 107.66
14/7/2008 532606 PAREKH ALUM P R AND COMPANY S 94174 107.34
14/7/2008 506618 PUNJAB CHEM JITENDRA MEHTA B 37000 228.89
14/7/2008 506618 PUNJAB CHEM SUPERLINE TRADING COMPANY PVT LTD S 23552 228.90
14/7/2008 513583 SBT INTERN KAPIL PURI B 150000 13.50
14/7/2008 526365 SHYAM STAR VIPUL DASHRATLAL SHAH B 55948 191.50
14/7/2008 526365 SHYAM STAR PARESH RAMJIBHAI CHAUHAN B 37965 194.30
14/7/2008 526365 SHYAM STAR PRABHUBHAI DOBARIA S 66590 194.21
14/7/2008 526365 SHYAM STAR VIPUL DASHRATHLAL SHAH S 43226 194.30
14/7/2008 532999 SILVER ANIMA PRABHUDAS LILLADHER PVT. LTD. B 81904 40.66
14/7/2008 532999 SILVER ANIMA PRABHUDAS LILLADHER PVT. LTD. S 81904 41.36
14/7/2008 531675 TRICOM INDIA JITENDRA MEHTA S 79203 124.58

NSE Bulk Deals to Watch - July 14 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
14-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAK RAMANBHAI RATHOD,BUY,218773,100.30,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,JHAVERI VICKY RAJESHBHAI,BUY,149500,105.91,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,JUPITOR BUSINESSES LTD,BUY,100000,105.34,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,MAHASAGAR SECURITIES PVT LTD,BUY,100000,105.00,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,MARUTI SECURITIES LTD.,BUY,95010,105.25,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,SCB CORPORATION PROP SUNIL BAMCHA,BUY,100000,107.60,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,SUMITA SAXENA,BUY,95072,103.68,-
14-JUL-2008,IFCI,IFCI Ltd.,CLEAN FINANCE & INVESTMENT LTD,BUY,6470940,37.87,-
14-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,CIMMCO VINIMAY PVT LTD,BUY,246726,39.23,-
14-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,DIPAK RAMANBHAI RATHOD,BUY,114407,38.58,-
14-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,PASHUPATI CAPITAL SERVICES PVT. LTD.,BUY,149715,38.47,-
14-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,PRASHANT JAYANTILAL PATEL,BUY,506051,38.24,-
14-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,TRANSGLOBAL SECURITIES LTD.,BUY,298872,38.54,-
14-JUL-2008,NATCOPHARM,Natco Pharma Limited,P.R.TRADERS,BUY,300000,67.60,-
14-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,BUY,217135,138.58,-
14-JUL-2008,SB&TINTL,SB&T International Ltd,PURI KAPIL,BUY,150000,13.50,-
14-JUL-2008,SELAN,Selan Exploration Technol,RAVI SHANKARAN,BUY,78046,216.69,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,DIPAK RAMANBHAI RATHOD,SELL,193952,106.98,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,MAHASAGAR SECURITIES PVT LTD,SELL,100000,107.57,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,MARUTI SECURITIES LTD.,SELL,95010,104.91,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,SOPHIA GROWTH - A SHARE CLASS OF SOMERSET INDIA FUND,SELL,500000,105.05,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,SS CORPORATE SECURITIES LIMITED,SELL,99800,105.72,-
14-JUL-2008,FIRSTWIN,First Winner Industries L,SUMITA SAXENA,SELL,95072,103.61,-
14-JUL-2008,IFCI,IFCI Ltd.,CLEAN FINANCE & INVESTMENT LTD,SELL,6471258,37.90,-
14-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,CIMMCO VINIMAY PVT LTD,SELL,246726,39.00,-
14-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,DIPAK RAMANBHAI RATHOD,SELL,55407,38.78,-
14-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,PASHUPATI CAPITAL SERVICES PVT. LTD.,SELL,149715,38.47,-
14-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,PRASHANT JAYANTILAL PATEL,SELL,506051,38.43,-
14-JUL-2008,LOTUSEYE,Lotus Eye Care Hospital L,TRANSGLOBAL SECURITIES LTD.,SELL,288872,38.68,-
14-JUL-2008,NATCOPHARM,Natco Pharma Limited,P R & COMPANY - ARUN KUMAR RATHI,SELL,300000,67.60,-
14-JUL-2008,SASKEN,Sasken Commu Techno Ltd,MBL & COMPANY LTD.,SELL,218235,138.86,-
14-JUL-2008,SELAN,Selan Exploration Technol,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,SELL,200000,217.18,-
14-JUL-2008,SELAN,Selan Exploration Technol,RAVI SHANKARAN,SELL,6294,184.67,-

Nifty July 2008 futures at premium

Turnover drops

Nifty July 2008 futures were at 4045, at a premium of 5.30 points as compared to spot closing of 4039.70. NSE's futures & options (F&O) segment turnover was Rs 40096.24 crore, which was lower than Rs 50149.82 crore on Friday, 11 July 2008.

Sterlite Industries (India) July 2008 futures were at discount at 680 compared to the spot closing of 685.90.

ONGC July 2008 futures were at a discount at 872 compared to the spot closing of 875.75.

Ranbaxy July 2008 futures were at a premium at 478 compared to the spot closing of 475.30.

In the cash market, the S&P CNX Nifty lost 9.3 points or 0.23% to 4039.70.

Merger and Acquisitions dip

The continuing recessionary fears in the world's largest economy, has dented India Inc's US-bound merger and acquisition activities, which dropped 30 per cent to 5.1 billion dollars in the first six months of 2008, according to an investment bank and advisory firm.

In the first half of 2008, Indian companies accounted for a total of 34 US-bound acquisitions worth over USD 5.1 billion, US-based Virtus Global Partners said in its latest report on US bound acquisition by Indian companies.

However, the volume of deals dropped 15 per cent to 34, from 40 in the H1 of 2007.

The mega size M&A deal in the first half of 2008, include Tata Chemicals acquisition of General Chemicals for USD one billion, GMR Energys purchase of 50 per cent equity in Intergen for USD 1.1 billion and Sterlite Industries announced bid for Asarco valued at USD 2.6 billion. Over 70 per cent of the transactions involved acquisition of 100 per cent stock for cash consideration.

Despite a slowdown in the M&A volume, IT/ITES remained the most acquisitive sector capturing over 50 per cent share of the total US-bound transactions by volume, the report stated.

"The high rate of US-bound acquisition activity is being propelled by the need to gain scale in terms of size, product offerings and geography. The first six months of 2008 also demonstrate an underlying business model change - from a cost-centric approach to a profit-margin focus," the report pointed out.

As per the report, the acquisition of Regulus Group by 3i Infotech for USD 100 million, Caterpillar Inc by Satyam Computer for USD 60 million and Jass & Associates Inc and SDG Corporation by Mascon Global for USD 55 million are among the top US-bound M&A deals.

Sensex slips amid sharp volatile trades

The market saw high volatility during the day, as stocks gyrated between the either sides of the zones throughout the session with the Sensex witnessing the intra-day swing of 289 points. The market opened lower due to the overnight loss in the US markets, but pared early loss as investors' sentiment turned positive as the Sensex neared its lifetime high of 13,559 points. Thereafter, sustained selling in frontline, information (IT) and Teck stocks saw the Sensex enter into negative territory. After displaying some range-bound moves, the market plunged deep into the red on heavy selling towards the close to touch the day's low of 13,270. The Sensex finally closed the session at 13,331, down 139 points. The Nifty had a flat close at 4,040, down 9 points.

The breadth of the market was negative. Of the 2,649 stocks traded on the BSE, 1,576 stocks declined, 1,009 stocks advanced and 64 stocks ended unchanged. Among the sectoral indices the BSE IT index shed 5.94%, the BSE Teck index declined 3.83% and the BSE FMCG index was down 1.46%. However, the BSE PSU, Metal, Oil & Gas, Auto and CD indexes closed in the green.

Selective buying helped the index overcome its losses. ONGC gained 1.56% at Rs866.85, NTPC advanced 3.15% at Rs167 and Mahindra & Mahindra added 2.91% at Rs546.45. SBI, Tata Steel, Ambuja Cement, Tata Motors, Reliance Infrastructure and Hindustan Unilever notched up steady gains.

Selling was evident in select heavyweights. Ranbaxy Laboratories dropped 10.45% at Rs475.90, Satyam Computer Services declined 7.92% at Rs444.45, Infosys tumbled 7.18% at Rs1,556.10, Tata Consultancy Services shed 3.79% at Rs768.95, HDFC dipped 3.38% at Rs1,935.90, BHEL was down 3.37% at Rs1,470 and ITC shed 3.30% at Rs168.70.

Over 1.80 crore IFCI shares changed hands on the BSE followed by Reliance Natural Resources (1.46 crore shares), Ispat Industries (1.23 crore shares), Chambal Fertilisers (84.91 lakh shares) and Reliance Petroleum (52.64 lakh shares).

Post Session Commentary - July 14 2008

The domestic market ended the day in negative note after showing volatility throughout the trading session, due to the selective buying and selling across the board. The Indian market opened with a heavy gap down, tracking weak cues from the US markets but showed some recovery in the mid session as the European markets gave supports on the back of the US government announcement to prop up troubled mortgage financiers Fannie Mae and Freddie Mac. This led to the market to witness some buying in afternoon trade. However, the market did not hold up its gains for so long as tumbled in the final hours as the profit booking prevailed. From the sectoral front, metal index was remained in the limelight as most of the buying was witnessed from this basket while selling pressure led by the weakness in IT, Bank and Pharma stocks. The market breadth was negative as 1009 stocks closed in green while 1576 stocks closed in red and 64 stocks remained unchanged.

The BSE Sensex closed lower by 139.34 points at 13,330.51 and NSE Nifty ended down by 9.30 points at 4,039.70. The BSE Mid Caps and Small Cap closed with loss of 34.54 points and 73.60 points 5,330.80 and 6,640.06 respectively. The BSE Sensex touched intraday high of 13,559.36 and intraday low of 13,269.62.

Lossers from the BSE are Ranbaxy Lab (10.45%), Satyam Computer (7.92%), Infosys Tech (7.18%), TCS Ltd (3.79%), HDFC (3.38%), BHEL (3.37%), ITC L:td (3.30%), HDFC Bank Ltd (3.26%), Hindalco (2.96%) and ICICI Bank (1.98%).

The IT Index closed lower by 232.04 points at 3,675.59. Lossers are Satyam Computer (7.92%) along with Infosys Tech (7.18%), HCL Tech (5.81), MPhasis Ltd (5.04%), Moser Bayer (4.77%), Tech Mahindra (4.49%) and TCS Ltd (3.79%).

The Banking index closed down by 74.24 points at 5,970.52. Lossers are Axis Bank (5.05%), HDFC Bank Ltd (3.26%), Kotak Bank (2.54%), ICICI Bank (1.98%), Overseas Bank (1.52%), and Federal Bank (1.50%).

The Pharma index lost 50.02 points to close at 4,079.92. Major lossers are Ranbaxy Lab (10.45%), Orchid Chem (3.20%), Sunpha Adv (2.77%), Piramal Heal (1.83), Fortis Health (1.52%) and Apollo Hos (1.23%).

The Reality index ended down by 37.56 points at 4,762.53. Lossers are Anant Raj (5.29%), Purvankara (4.47%), Unitech Ltd (3.54%), Mahindra Life (3.08%), Parsvnath (1.69%), and Pheonix Mill (1.69%).

The Metal index went up by 185.48 points at 12,897.19. Gainers are Hind. Zinc (8.08%), Bhushan Steel (4.60%), Sterlite In (3.21%), Tata Steel (2.69%), Steel Authority (2.24%) and NALCO (2.14%).

The Oil & Gas index closed higher by 98.79 points at 8,985.07. As ONGC (3.24%), Reliance (1.51%), IOC (0.97%), Essar Oil Ltd (0.44%) and HPCL (0.34%) closed in positive territory.