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Wednesday, January 09, 2008
Tuesday, January 08, 2008
The elephant and the bull market
At the epicenter of India's booming stock market, on Mumbai's Dalal Street, there's hardly any sign of frenzy. A few dozen people stand outside, laconically watching the electronic ticker. Several murmur into phones behind cupped hands, as vegetarian-snack vendors sell samosas and sub-brokers hand out company prospectuses.
Inside, the Bombay Stock Exchange's once-rambunctious trading floor has long since closed. Now brokers place orders quietly and electronically from elsewhere.
But the calm belies what's really going on - an unprecedented run-up in stock prices fed by foreign-investor enthusiasm about India's economic growth, averaging 9% over the past three years. In the past three months more than $7.9 billion in foreign equity capital has flooded in, pushing the market up such a steep curve that the key Sensex index gained some 3,000 points, or 17.5%, in just 33 days this fall.
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Emaar MGF IPO coming soon
The India arm of Dubai's Emaar Properties plans to raise between $1.2 billion and $1.5 billion in an Indian IPO, according to a term sheet obtained by a news agency.
Emaar MGF Land Ltd plans to launch its deal roadshow on January 18, with a listing tentatively scheduled for February 27
The company is selling 11.9 per cent of its enlarged share capital in an offering sponsored by Citigroup, Enam Securities, Goldman Sachs, HSBC, JPMorgan, Kotak Mahindra Capital and Merrill Lynch.
Reliance Power - 7 days to go
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Market up but smallcaps slaughtered
The Sensex opened with a huge positive gap of 157 points at 20,970, and rallied past the 21,000-mark to a fresh all-time high of 21,078.
Profit-taking at higher levels saw the index drop to a low of 20,697 - down 381 points from the peak. Fresh buying towards the end saw the index finish with a gain of 60 points at 20,873.
The Smallcap Index plunged 3.3% (459 points) to 13,516, and the Midcap Index tumbled 2.8% (285 points) to 9817.
The market breadth was extremely negative - out of 2,922 stocks traded, 2,369 declined, 541 advanced and 12 were unchanged today.
INDEX MOVERS...
Bharti Airtel zoomed 4% to Rs 974. HDFC Bank soared 3.6% to Rs 1,716.
Satyam, SBI and Mahindra & Mahindra surged around 2.5% each to Rs 424, Rs 2,465 and Rs 830, respectively.
Reliance Communications and ONGC rallied nearly 2% each to Rs 804 and Rs 1,322, respectively.
TCS and Infosys advanced 1.5% each to Rs 991 and Rs 1,662, respectively.
DLF and Larsen & Toubro gained over 1% each at Rs 1,151 and Rs 4,333, respectively.
Reliance and Wipro were also up around 1% each at Rs 3,050 and Rs 488, respectively.
...AND SHAKERS
Hindalco and Tata Steel plunged 3.7% each to Rs 209 and Rs 892, respectively.
Grasim shed 3.3% to Rs 3,401. Maruti slipped 2.4% to Rs 940.
ICICI Bank and Reliance Energy tumbled around 2% each to Rs 1,333 and Rs 2,536, respectively.
ACC, Tata Motors and HDFC dropped around 1.5% each to Rs 985, Rs 774 and Rs 3,064, respectively.
NTPC and Cipla declined 1.3% each to Rs 265 and Rs 209, respectively. Hindustan Unilever was down over 1% at Rs 235.
MOST ACTIVE COUNTERS
Reliance Natural Resources topped the value chart with a turnover of Rs 1,020.35 crore followed by Reliance Petroleum (Rs 600 crore), Reliance Communications (Rs 334.30 crore), Reliance (Rs 276.50 crore) and Himachal Futuristic (Rs 273.80 crore).
Himachal Futuristic led the volume chart with trades of around 4.59 crore followed by Reliance Natural Resources (4.23 crore), Arvind Remedies (3.22 crore), Reliance Petroleum (2.39 crore) and Alka India (2.35 crore).
Market Close: 21k touched but..Couldn't sustain?
Strong global cues sees firm and banging start as Sensex hits 21k and Nifty made all time high in opening trade. However, indices could not sustain the highs and immediately fell into negative teritorry. Markets continued to trade extremely volatile; there was no clear direction where the indices were heading and juggled on both the sides. But, value buying at lower levels emerged as profit booking at high levels. However, buying at late session helped the indices to recover and end flat. Asian markets ended mixed, European markets trading in green.
Profit booking was seen in all the sectors except IT and selective stocks in sugar. Metals and Capital Goods were hit badly. Mid and small caps which had been outperformer for so many sessions, today were hammered. The both the index hit badly, ended down by 3%.
Sensex ended up by 61 points at 20873.33. It was helped up by gains in Bharti Tele (974.15,+4 percent), HDFC Bk (1716.3,+4 percent), Satyam (424.5,+3 percent), SBI (2465.25,+3 percent) and RCVL (804.3,+2 percent). Restricting the gains are Hindalco (208.95,-4 percent), TISCO (891.8,-4 percent), Grasim (3400.6001,-3 percent), Maruti (939.65,-2 percent) and ICICI Bk (1333.5,-2 percent).
Domestic car sales managed to beat the year-end blues in December 2007 registering an 8.8% growth while bike sales skid by 11.4% for the two-wheeler industry. Car market leader Maruti Suzuki India managed to increase sales by 4.5% to 50,056 units in December against 47,877 units in the corresponding period a year ago. Rivals Hyundai registered a growth of up 18.2% at 13,069 units, compared to 11,049 in the year-ago period, while Tata Motors witnessed a fall of 14% at 10,876 units, against 12,672 units in the same month in 2006. General Motors more than tripled its sales during the month at 4,130 units, compared to 1,064 in December 2006, thanks to heavy discounts offered on its hatchback 'Spark'. On the motorcycle front, the down-slide continued with all the top three manufacturers, Hero Honda, Bajaj Auto and TVS registering negative growths in December 2007. However, the auto stocks ended in deep red.
ABG Shipyard Ltd reported impressive results for the third quarter December 2007. The top line grew by 55% to Rs 275 cr and the bottom line grew by 61% to Rs 47 cr. The Ebidta profit grew by 55% to Rs 82 cr from Rs 53 cr on yoy basis. The company has been able to maintain the Ebidta margins at 30%, and has received Rs 17 cr in quarter as subsidy. The company imports 50-60% of raw material required, the appreciating rupee will be benefited. The major raw material is steel; the increase in prices of steel will impact on company?s margins. It has also planed to convert new facility at Dahej to SEZ. This may give some relief to the company if subsidy discontinued. ABG has main advantage of employee cost; it has appointed most of the employees on contract basis, this helps the company to save the fixed cost. The valuations are not compelling at this point of time; the business scenario is extremely good. Read our report here to get more calrity and ther will be a result analysis here too.
Technically Speaking: It was extremely volatile session with no clear direction, Sensex traded on both the sides without direction and ended with small gains. Sensex touched intraday high of 21,078 and low of 20,697. Overall breadth was in favor of Declines, where the Advances stood at 541, while Declines at 2371. The turnover was good at Rs 11,580 cr. Sensex support lies at 20,530 and resistance lies at 20,950 levels.
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