Market slips on weak global cues

The market declined marginally last week on weak global cues amid dimming hopes that US politicians will reach a debt deal before the end of the year. United States is the world's biggest economy. Gains fuelled by hopes of new government reforms also subsided as the winter session of parliament ended on Thursday, 20 December 2012. The BSE Sensex fell 75.25 points or 0.39% to 19,242 in the week ended Friday, 21 December 2012. The 50-unit S&P CNX Nifty declined 31.90 points or 0.54% to 5,847.70 in the week. The BSE Mid-Cap index fell marginally by 0.02% and the BSE Small-Cap index fell by 0.38%. Both these indices outperformed the Sensex.

Daily News Roundup - Dec 12 2012

Jaguar Land Rover, exploring an opportunity to start production in Saudi Arabia, has signed a letter of intent to begin a feasibility study. (BL) Mahindra & Mahindra will increase prices of its vehicles by over 1% across various models in January to offset rising input costs. (BL) ITC is willing to invest nearly Rs30bn in Bengal over the next four years. (BBL) Videocon Industries announced a new discovery of light hydrocarbons in a well, which is a part of a concession area of Sergipe Alagoas ultra deep water basin in Brazil. (BL)

12-12-12: Good start, eye on IIP

"Production is not the application of tools to materials, but logic to work" - Peter F. Drucker The date 12.12.12 may not enthuse many as it marks Chaudas Amavasya, considered an inauspicious day. Thankfully, the stockmarkets have a mind of their own and looks like the global tailwinds may propel the Indian indices to a better start. The Index of Industrial Production data for October will be keenly watched given the contraction in September. Headwinds of course continue with the Standard & Poor's again warning that India still faced a downgrade possibility in its sovereign rating to junk grade. On the other hand Moody’s felt the country's growth prospects for 2013 have improved.

IPO Grey Market Premiums - Bharti Infratel, PC Jewellers

Company Name	Offer Price (Rs.)	Premium (Rs.)	Kostak Price Minimum Application	Kostak (Rs. 1 Lac Application)	Kostak (Rs. 2 Lac Application)
CARE	700 to 750	155 to 160	--	--	--
P. C. Jeweller	125 to 135 Rs. 5 Discount to Retailers	6 to 7	Rs. 600 to 650 Min. Application : 90 Shares	--	--
BhartiInfratel	210 to 240 Rs. 10 Discount to Retailers	Discount	-- Min. Application : 50 Shares	--	2500.00

Crude ends higher for first time in six sessions

Prices remain choppy and weak throughout the day Crude oil prices ended higher for first time in six sessions on Tuesday, 11 December 2012 at Nymex. Prices remained weak and choppy throughout the day but moved higher at the end. A weak dollar helped put a brake on the drop in prices during intra day trading. On Tuesday, light and sweet crude oil futures for light sweet crude for January delivery closed higher by $0.23 (0.3%) at $85.79/barrel. Prices had shed almost 4% in previous five trading sessions.

Bharti Infratel IPO gets muted initial response

Receives bids for 72.67 lakh shares The initial public offer (IPO) of Bharti Infratel received bids for 72.67 lakh shares till 16:00 IST on first day of the bidding for the IPO today, 11 December 2012. The issue was subscribed 0.05 times. The issue closes on 14 December 2012. The company is issuing 14.62 crore equity shares of face value of Rs 10 each in the price band of Rs 210 to Rs 240 per share. Along with the fresh issue, there is an offer for sale of 4.26 crore equity shares by existing shareholders viz. Compassvale, GS Strategic, Anadale, Nomura, and Fabrikant HK Trading. There is a discount of Rs 10 per share for retail investors.

CARE IPO subscribed 40.29 times

Gets bids for 24.65 crore shares Investors made a beeline for the initial public offer of credit rating agency Credit Analysis & Research (CARE). The IPO received bids for 24.65 crore shares till 16:00 IST on the last day of the bidding for the IPO today, 11 December 2012. The IPO was subscribed 40.29 times. The IPO price band is set at Rs 700-Rs 750. The IPO comprises of offer for sale of share by existing shareholders and therefore the company will not get any funds from the IPO. The selling shareholders are offering 71.99 lakh equity shares of face value Rs 10 each. The offer constitutes 25.22% of the post-offer paid-up equity share capital of the company.

Market may open higher on firm Asian stocks

The market may open higher on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 17.50 points at the opening bell. Asian stocks gained on Wednesday, 12 December 2012, amid sustained optimism for an agreement on upcoming US tax hikes and spending cuts, ahead of the conclusion of a Federal Open Market Committee that may see it undertake more asset buying. Closer home, the Central Statistical Organization (CSO) will unveil industrial output data for October 2012 today, 12 December 2012. Industrial production is seen expanding 4.7% in October 2012, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production declined 0.4% in September 2012.

India Banks, India Economy, Balakrishna Industries

 India Banks, India Economy, Balakrishna Industries

India Midcaps, Gold, Adani, Bharti Airtel

 India Midcaps, Gold, Adani, Bharti Airtel 

Fortis Healthcare

 Fortis Healthcare 

Federal Bank

 Federal Bank

Midcap Trade Ideas

 Midcap Trade Ideas

Grey Market Premiums - CARE, PC Jeweller, Bharti Infatel

Company Name	Offer Price (Rs.)	Premium (Rs.)	Kostak Price Minimum Application	Kostak (Rs. 1 Lac Application)	Kostak (Rs. 2 Lac Application)
CARE	700 to 750	170 to 175	Rs. : 950 Min. Application : 20 Shares	--	--
P. C. Jeweller	125 to 135 Rs. 5 Discount to Retailers	11 to 12	Rs. 1000 Min. Application : 90 Shares	--	--
BhartiInfratel	210 to 240 Rs. 10 Discount to Retailers	Rs. 4 Discount	-- Min. Application : 50 Shares	--	--

Bharti Infratel IPO - What's the take?

Bharti Infratel’s initial share sale will likely be India’s biggest in nearly two years and key for the country’s troubled telecom sector, which has been hit by regulatory flip-flops. Price Band: 210 – 240 rupees/share Issue opens, closes: Dec 11 – Dec 14 The share sale of the telecommunications tower unit of top Indian phone carrier Bharti Airtel Ltd will raise $825 million in the upper end of the price range. The sale comes amidst signs of a revival in the primary market with other smaller private offerings like CARE Ratings, PC Jewellers and Tara Jewels in the process of raising or having recently raised capital. The sale will also be a test of bigger offerings as the government aims to raise roughly $1.2 billion by selling shares in miner NMDC Ltd, sources told Reuters. Here’s what some brokerages are advising investors on the Bharti IPO: Ambit Capital: Advises investors to avoid at current valuations. At 10-12x FY14 EV/EBITDA and 38-44x FY14 earnings, cites expensive valuations. Valuations are fair compared to global peers, but peers such as American Towers and Crown Castle enjoy superior economics. Revenue growth expected to slow down on a drop in tenancies, weak uptake in 3G/4G services. Crisil: IPO grade of 4/5 indicating fundamentals are above average. Network expansion by India’s leading telcos – Bharti Airtel, Vodafone and Idea Cellular Ltd will work in Bharti Infratel’s favour as these top three telcos by revenue are its clients. Large-scale operations, first-mover advantage and pool sharing arrangement among the top three telcos have resulted in better-than-industry tenancy ratio for Bharti Infratel which is expected to improve further leading to high operating leverage and improvement in profitability. Religare Institutional Research: Valuations at higher end of IPO band are not cheap given near-term growth outlook. A key risk is a potential leveraging of the balance sheet to expand inorganically internationally. Advises investors to apply at mid-lower end of price band. Enam Securities: The expansion of services in relatively under-penetrated markets like Category B & C circles by telcos provides a significant opportunity to BIL. BIL and Indus have long-term master service agreements (MSAs) with tenant telcos, which generates stable cash flow in the form of tower rentals as well as provides revenue visibility for the company. Marquee investors like Compassvale (wholly owned subsidiary of Temasek), KKR Towers, Nomura will continue to hold major shares in BIL even post-IPO. Angel Broking: Avoid IPO on premium valuations. Low asset turnover, minimal use of leverage in a capital intensive industry has resulted in low return on equity, or RoE, over past three years. The overcapacity in the industry is expected to limit the demand for rollout of new towers. Further, regulatory changes and the resultant uncertainty pose a risk to telecom players as their network rollout plans could be hampered.