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Tuesday, September 11, 2007
Morning Call - Sep 11 2007
Market Grape Wine :
In House :
Nifty at a supp of 4473 and 4433 levels with resistance at 4530 and 4550 levels .
Buy : Intraday : Ranbaxy above 419 target 442 s/l of 414
Buy : Intraday : APIL target 780 s/l of 749
Buy : Intraday : in F&O Escorts above 110 target of 117 s/l of 107
Buy : intraday : kesoram : above 559 target 578 s/l of 551
Out House :
Markets at a support of 15342 & 15432 levels with resistance at 15696 & 15786 levels .
Buy : REL & RPL
Buy : RIL & Tisco bullet
Buy : Titan & Siemens
Buy : Hanun , IndiaInfo , Centextile & JpAsso bullet
Buy : IBulls , IbullsReal & DLF
Buy : JpHydro , TTML , Nagarfert & IFCI
Buy : NTPC & Gujambcem bullet
Buy : Aptech , Welsguj & Gitanjali & Aban
Dark Horse : RIL , REL, NTPC , Kotak , Kajaria , Aptech , Tisco , Gacl & Bharti
Asian Markets open positive
Asian stock markets opened positive on Tuesday (September 11) on speculation that higher prices for steel and crude oil will boost earnings. Japanese stocks after an early fall, regained strength and moved into the positive terrain; thus showing signs of volatility.
Posco and China Steel advanced after reports that some South Korean producers of the alloy are increasing prices. Hyundai Steel climbed as it raised prices for steel used in construction.
The Japanese benchmark index Nikkei gained 39.43 points, or 0.25%, to trade at 15,804.40.
Hong Kong`s index Hang Seng gained 130.83 points, or 0.55%, to trade at 24,130.53.
China`s Shanghai Composite gained 33.22 points, or 0.62%, to trade at 5,388.51.
Taiwan`s index Taiex gained 79.12 points, or 0.89%, to trade at 9,016.70.
South Korea`s KOSPI gained 2.32 points, or 0.13%, to trade at 1,838.19.
Singapore`s Straits Times gained 38.48 points, or 1.12%, to trade at 3,480.35
Nifty September 2007 futures at slight discount
Turnover declines further
The Nifty September 2007 futures settled at 4,500, a discount of 7.85 points as compared to spot closing of 4,507.85.
The NSE F&O turnover was Rs 37,333.48 crore as compared to Rs 38,666.44 crore on Friday, 7 September 2007. It has been declining from Rs 40,927.51 crore on 6 September 2007, despite 14 additional stocks started trading in the futures & options segment of NSE.
Reliance Industries September 2007 futures settled at premium, at 1990.50, compared to the spot closing of Rs 1985. It was the most active contract with turnover of Rs 1643.24 crore.
Reliance Petroleum September 2007 futures settled at premium, at 129.85, compared to the spot closing of Rs 129.05.
Tata Steel September 2007 futures settled at premium, at 696.70, compared to the spot closing of Rs 693.80.
In the cash market, the S&P CNX Nifty slipped 1.65 points or 0.04% at 4,507.85.
From 6 September 2007, 14 additional stocks started trading in the futures & options segment of NSE
The 14 stocks are 3i Infotech, Aptech, Bhushan Steel, Biocon, CMC, Havells India, Lakshmi Machine Works, NIIT Technologies, Nucleus Software, Sasken Communications, Tech Mahindra, Tulip IT Services, Welspun Gujarat Stahl Rhoren and Yes Bank.
The basket of stocks available in the derivatives segment has been on the rise. In May 2007, NSE had added 31 additional stocks in the F&O segment. NSE has also been adding some newly listed stocks in the F&O segment from the very first day of listing of these stocks. Recent inclusions were Central Bank of India and Puravankara Projects
India's Top 10 Billionaires
- Lakshmi Mittal
- Mukesh Ambani
- Anil Ambani
- Azim Premji
- Kushal Pal Singh (DLF)
- Sunil Mittal
- Kumar Mangalam Birla
- Shashi & Ravi Ruia (Essar ;-) )
- Ramesh Chandra (Unitech)
- Pallonji Mistry
Via Forbes
Seventymm selling out ?
In its bid to expand its footprint in the entertainment business, Anil Ambani-controlled Anil Dhirubhai Ambani Group (ADAG) is negotiating a buyout of India’s largest online movie rental company Seventymm Services Pvt. Ltd, which delivers video compact discs and digital video discs to homes of around 25,000 customers.
Reliance Entertainment Pvt. Ltd, part of ADAG, is already into movie rentals under the brand of Big Flix.
Seventymm chief operating officer Subhankar Sarkar denied buyout talks, but two senior ADAG and Seventymm executives, both of whom did not want to be identified, said negotiations were at an advanced stage. Terms of the potential acquisition were not immediately available. An ADAG spokesman said in an email that the group does not comment on speculation.
An executive at venture fund Matrix Partners India, a local arm of US-based firm Matrix Partners, which is one of the key investors in Seventymm with a $7 million (Rs28.7 crore) investment, too declined comment. Other backers of Seventymm include venture capital firms such as Draper Fisher Jurvetson and ePlanet Ventures.
Bangalore-based Seventymm is the largest online movie rental service in India, offering access to more than 15,000 titles across multiple languages including English, Hindi, Tamil, Telugu, Malayalam, Kannada, Bengali, Gujarati, Marathi, Assamese, Oriya, Bhojpuri, Rajasthani and Punjabi.
“This deal assumes significance as Seventymm claims 25,000 customers in six cities including Chandigarh, Bangalore, Chennai, Hyderabad, Delhi and Mumbai. Reliance ADAG could smoothly launch online movie rental business as other majors are planning to getting into this space,” a senior executive of a rival online movie rental company, who does not want to be named, said.
He added that the market is set to grow significantly with the entry of firms such as Nimbus Communications and Moser Baer. The players in the online movie rental space today include Catchflix, Friday Box Office, Cinesprite and Clix Flix.
Seventymm, promoted by entrepreneur Raghav Kher, recently acquired New Delhi-based Madhouse, which was the first Indian company to offer movie DVD rental service through the Internet, phone and text messaging services, for an undisclosed amount.
SBI gives Tata Steel 1billion $ for Corus
The State Bank of India (SBI), the country's largest lender, has come to Tata Steel’s aid for completing the fund-raising for its $12.9 billion acquisition of Anglo-Dutch steelmaker Corus.
The bank has agreed to provide up to $1 billion to Tata Steel’s special purpose vehicle, Tata Steel UK, to refinance $7.2 billion of bridge loans taken for the biggest buyout by an Indian company.
“We have approved a loan of $800 million to $1 billion to Tata Steel,” said a senior SBI official. A Tata Steel spokesperson confirmed that the company was availing of the loan from the SBI.
Tata Steel had to turn to the SBI after some foreign banks backed out, thanks to the sub-prime crisis in the US and the credit squeeze that followed.
According to reports, about $500 billion of fund-raising has been caught in a global credit logjam caused by risk aversion among banks and otherinvestors.
This is also the first acquisition financing of this size provided by the SBI, which till now was involved in deals of less than $100 million (Rs 410 crore).
“In February, the SBI had raised close to $700 million — $300 million under the medium term note programme and $400 million through innovative perpetual debt instruments — which could have been used to fund the acquisition. The company (Tata Steel) did not avail of the loan then, but now it wants it,” said the SBI official.
Early last month, Tata Steel had to agree to pay 50 basis points more on a $1-billion, seven-year loan as the banks participating in the loan syndication bargained with the underwriters for higher yield. The loan’s underwriters were ABN Amro, Citigroup and Standard Chartered.
There has been as much as 200 basis point increase in credit spreads on Indian loan and bond issues since the last week of July, when the sub-prime crisis first struck international credit markets.
Gammon India plunges as its flyover crumbles
Shares of Gammon India plunged 9% to Rs 420.65 on the Bombay Stock Exchange, post the flyover collapse in Hyderabad on Sunday evening.
The market perceives that the collapse of the flyover will result in huge losses for the company and affect the company’s ability to secure new contracts. Around 8.37 lakh shares exchanged hands on BSE on Monday.
However, analysts believe all is not lost. If it were to recover from the flyover muddle, Gammon still has the quality to do well on the bourses. The order book of the company provides strong growth visibility.
An order book at “3.6 times FY3/07” revenues provides strong visibility for growth over the next three years. With the initial mobilisation phase for a large proportion of the order book over, margins should remain stable, a construction analyst said.
Poll Results - At current market levels, you would
Total Number of Votes : 522
BUY - 25% - 135 votes
SELL - 32% - 172 votes
HOLD - 41% - 218 votes
Most of the people visiting this site are holding on to their equities, sizeable % actually are buying too.
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