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Tuesday, November 30, 2010
Markets recover as GDP data beats estimates
Domestic indices reversed their losses and ended the session with significant gains in response to India’s Q2 GDP data beating market expectation and strong buying in realty stocks.
Major headlines
India's growth on track; Q2 GDP at 8.9%
Ranbaxy gets USFDA nod for Donepezil
Rural Electrification Corporation soars on getting FCB nod
MOIL IPO - Is it really worth applying ?
Qualified Institutional Buyers (QIBs) 49.16
Non Institutional Investors 8.77
Retail Individual Investors (RIIs) 10.86
How many times do you think retail would be oversubscribed by ? Even a 2L subscription won't give you good allotment.
Monday, November 29, 2010
Daily Grey Market Premiums - Nov 29 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| R.P.P. Infra Projects Ltd. | 75 | 2 to 2.50 |
| Claries Life science | 228 to 235 | 18 to 20 |
| Manganese Ore Ltd. | 340 to 375 | 205 to 215 |
| Shipping Corporation | 135 to 140 | -- |
| One 97 Communication | - | -- |
Loan scam worries linger, -ve start likely
Indian markets are likely to start the session on a negative note following the global peers. Real estate and banking stocks would still continue to trade in pressure.
Headlines for the day:
HDFC chalks out a major foray into education
GMR to sell InterGen stake for $1.23 billion
ITC may pick up 60% in JV with Nitesh Estates
Daily News Roundup - Nov 27 2010
Reliance Industries plans to boost gasoline and diesel exports after restarting units shut for maintenance. (ET)
The Income Tax department surveys premises of GlaxoSmithKline, Piramal Healthcare and Wockhardt. (ET)
Environment Ministry has issued show-cause notices to Lavasa Corporation and Jindal Steel and Power for flouting green norms in their projects. (BL)
Sensex survives scam scare...Ends slightly down
Indian markets extended their losing streak to the fourth straight trading session and third consecutive week as investors remained worried about the fallout of the bribes-for-loans scam on the banking system and the real estate market. Today’s fall was led by persistent selling in Realty, Metals and Power stocks. The broader indices were among the worst hit today amid reports that brokers were offloading clients' shares to make up for the shortfall in margins. However, the BSE as well as the NSE clarified that there was no margin default on the part of any broker and that the trades were being settled on time.
Seeking redemption
Stability is not immobility. - Klemens Von Metternich.
After the mayhem of last week, the market will look to find some stability. The bulls will try their best to put the bribes-for-loans scam behind, but whether they are successful remains to be seen. A mix of domestic and global headwinds will continue to cast a shadow on the sentiment.
Market may extend losses on negative global cues
The market is likely to extend a four-day declining trend on weak global cues. Asian markets were trading lower amid rising worries over euro zone debt crisis. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate a flat opening.
Sunday, November 28, 2010
SCI FPO
Investors with a long-term perspective of at least two-three years can consider applying at cut off in the follow-on public offer (FPO) of The Shipping Corporation of India (SCI), the country's largest shipper (35 per cent share) in terms of Indian flagged tonnage.
EKC
Investors can consider phased exposure to the stock of Everest Kanto Cylinder, a high pressure cylinder manufacturer. At the current price of 97, the stock trades at 11 times its expected consolidated per share earnings for FY-12. The jump in volume sales in India and in its Dubai unit, lower costs of operations anticipated for new capacities and depletion of high-cost inventory augur for improvement of earnings from FY-12. Investors would need at least a two-year perspective to benefit from macro opportunities arising from CNG city gas distribution and Euro IV norms. Given the present market volatility, the stock can be accumulated in phases, on dips.
Power Grid, IDFC
The outlook for PowerGrid has turned negative. As long as PowerGrid rules below Rs 109, it would face stiff resistance. The stock finds an immediate resistance at Rs 103 and support at Rs 95. A close below Rs 95 could weaken it to Rs 84 initially and then to Rs 72-73. Only a close above Rs 109 would change the outlook to positive.
MOIL - IPO Review
Investors could consider applying to the IPO of Indian manganese producer MOIL India, which appears attractively priced given its quality ore reserves, low operating costs and booming domestic market. At the higher end of the offer price band with the retail discount factored in (Rs 356.25), the company would trade at an EV/EBIDTA ratio of 4.6 times and 10.5 times its trailing 12-month earnings. The enterprise valuation is at a discount to global peers such as Eramet and Eurasia Natural Resources.
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