EU accepts limited fiscal union...UK stays out

The European Union (EU) leaders agreed on new rules for budget discipline among its member nations but failed to reach a consensus on treaty changes on reported resistance from few others like the UK. Any deal may now just involve the 17 nations that share the euro, plus others who may want to join, the reports said. An agreement involving all 27 EU members fell through after British Prime Minister David Cameron reportedly demanded concessions that Germany and France were not willing to give. EU leaders chose to create a new inter-governmental treaty which will be negotiated only among 23 of the bloc’s members. The split on the new budget rules will leave the UK and Hungary out while the Czech Republic and Sweden are still considering whether to join or not.

Weekly Newsletter - Dec 11 2011

Next week is again very important for our markets. The IIP data for October will be out on Monday. The number is likely to be a pretty dismal one with one national daily actually reporting a 7% contraction.

Latest inflation report will be released on Dec. 14 and the RBI will take up its review on Dec. 16. A pause is what the RBI had predicted at its previous meeting. But, one has to see what stance the central bank takes as the rupee's depreciation has made things worse with cost of imports shooting up sharply.

Markets close week 4% lower

Domestic and global woes weighed on the sentiments this week. The Sensex fell 3.76% and the Nifty dropped 3.63%.

Headlines for the week

India’s services sector rebounds in November

Food Inflation at 6.6% versus 8%

2G scam: Court to decide on Swamy's plea against Chidambaram

Domestic sales of cars up by 7%, bikes by 22.67% in November

FM says FDI in retail suspended to avoid mid-term polls

FY12 growth seen at 7.5%: FM report

VA Tech Wabag - Potential Multibagger

Why I think VA Tech Wabag could be a mulitbagger (I hold the stock from IPO)

Population Growth + Climate Change will lead to water shortage, across the world

In India, more so, because both are happening at a fast pace

By 2025 (according to Scientific American), demand for water could rise upto 120% in most of India

Basically, what that means is that, we won't have water, but demand is there for it

In order to get that water we need, we will have to either -

1) Increase the price of water to reduce demand (won't work!) ..

2) Conserve Rain Water (possible, but can Climate have a devastating effect?)

3) Irrigation techniques (Jain Irrigation to benefit)

4) Finally, companies like VA Tech Wabag, which take Salty water and generate fresh water from them

With the technologies that convert salty water (97% of water is salty) to fresh water not so easy to replicate,...Companies like VA Tech Wabag, given the right cost and techniques could benefit hugely

India has a large part of its land surrounded by water and setting up these plants would not be isolated either

Again, the potential to be a multibagger is there, it remains to be seen whether execution & investment are coming in from Govt

All the above points were Tweeted

BSE Bulk Deals to Watch - Dec 9 2011

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
9/12/2011 590122 ASHIKACR SRIJAN LTD S 39000 50.19
9/12/2011 531568 Ashutosh Paper SALASAR TECHNO ENGINEERING PRIVATE LIMITED S 54600 163.05
9/12/2011 512109 Aviva Inds VSL SECURITIES PVT LTD B 7987 25.25
9/12/2011 512109 Aviva Inds SHREYANSHNATH SHARES AND FINANCIAL SERVICES PRIVATE LIMITED S 8059 25.24
9/12/2011 511664 BGIL Films ENAAM SECURITIES B 82801 5.16
9/12/2011 511664 BGIL Films INDER PAL S 73175 5.14

NSE Bulk Deals to Watch - Dec 9 2011

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
09-DEC-2011,CORAL-HUB,Coral Hub Limited,PRUDENT BROKING SERVICES PRIVATE LIMITED,BUY,144834,3.98,-
09-DEC-2011,DISHTV,Dish TV India Limited,DHAKA WARRIORS SPORTS PRIVATE LIMITED,BUY,23500000,62.60,-
09-DEC-2011,FARMAXIND,Farmax India Ltd,BMD EXPORTS PRIVATE LIMITED,BUY,4850000,2.00,-
09-DEC-2011,GRAPHITE,Graphite India Limited,GKW LIMITED,BUY,2000000,69.50,-

Advance tax data, RBI policy review in focus

The market is likely to remain volatile as investors react to a slew of economic data and the Reserve Bank of India's (RBI) monetary policy review. Investors will keenly watch data on third quarter December 2011 corporate advance tax payment due on Thursday, 15 December 2011, which may provide cues on Q3 December 2011 results. Interest rate sensitive banking, auto and realty shares will be focus next week ahead of the RBI's monetary policy review on Friday, 16 December 2011.

Data on Monday, 12 December 2011, on industrial production for October 2011 and on Wednesday, 14 December 2011, on headline inflation for November 2011 will provide cues on the central bank's likely policy stance at its mid-quarter monetary policy review on Friday, 16 December 2011. With the liquidity situation becoming tighter and inflation on the decline, the financial markets are expecting a reduction in the cash reserve ratio (CRR) -- portion of bank deposits kept with the RBI -- to ease the money crunch in the banking system. The CRR has been left unchanged at 6% since May 2010.

Market tumbles on government's inability to implement policy reforms

The market tumbled last week on concerns over government's inability to continue with policy reforms after it suspended plans to allow foreign direct investment (FDI) in multi-brand retail sector. Concerns over outcome of European Union summit also spooked sentiments. Key benchmark indices declined for three out of four trading sessions. Equity market was shut on Tuesday, 6 December 2011, on account of Moharum.

The BSE Sensex fell 633.37 points or 3.76% to 16,213.46 in the week ended Friday, 9 December 2011. The 50-share S&P CNX Nifty fell 183.45 points or 3.63% to 4,866.70.

Sensex off 3.9% in 2 days on EU summit uncertainty

Key benchmark indices fell for the second straight day to settle at their lowest level in more than a week on uncertainty on whether European leaders will be able to cobble up a far-reaching plan at a crucial European Union (EU) summit to tackle the region's festering debt crisis. A cut in economic growth forecast for the current year from the Indian government also weighed on the sentiment. Index heavyweight Reliance Industries (RIL) slumped more than 3%. The barometer index, BSE Sensex, shed 274.78 points or 1.67%, up close to 70 points from the day's low and off about 170 points from the day's high. All the 13 sectoral indices on BSE were in the red.

Better trades for the day - Dec 9 2011

Global Cues:

The European stocks fell in volatile trading on Thursday (December 08, 2011), tracking moves by the ECB and comments by politicians ahead of a crucial EU summit called to prevent a collapse of the eurozone.

The Wall Street fell on Thursday after the European Central Bank dashed hopes that policy-makers were preparing a financial 'bazooka' to contain the debt crisis, and Germany rejected some proposals to add power to the euro zone's bailout fund.

The Asian indices dropped on Friday (December 09, 2011) after global shares slumped as steps from the European Central Bank disappointed some investors. SGX Nifty was trading 55 points down, indicating a negative opening for the Indian markets.

Headlines for the day

SBI floats joint tender for installing 40000 ATMs

DLF eyes three big-ticket sales in 2012

AI, Kingfisher accounts frozen over service tax non-payment

Dish TV tapping investors for Rs 1,000-cr fund

Hindalco to launch branded doors, windows in January

IPO mop-up plunges 89% to $1.14bn in Jan-Nov

Syndicate Bank shortlists 4 for life insurance venture

Commodity cues

US Crude oil fell on Thursday as disappointing comments from the head of the European Central Bank increased doubts among investors that the region's debt crisis will be contained.

Markets may fall at start on ECB comments

Tracking global fall, the Indian markets are likely to start the trade on a negative note.

Headlines for the day

SBI floats joint tender for installing 40000 ATMs

DLF eyes three big-ticket sales in 2012

AI, Kingfisher accounts frozen over service tax non-payment

Dish TV tapping investors for Rs 1,000-cr fund

Hindalco to launch branded doors, windows in January

IPO mop-up plunges 89% to $1.14bn in Jan-Nov

Market may extend Thursday's losses on weak Asian stocks

The market may extend Thursday's (8 December 2011) 2.3% losses on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 51.50 points at the opening bell.

Key benchmark indices tumbled on Thursday, 8 December 2011, after a newspaper report suggested that industrial output declined by 7% in October 2011, falling for the first time since June 2009. The 50-unit S&P CNX Nifty fell the psychological 5,000 mark. The BSE Sensex lost 388.82 points or 2.3% to settle at 16,488.24, its lowest closing level since 1 December 2011.

BSE Bulk Deals to Watch - Dec 9 2011

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
8/12/2011 531160 Arcadia Merc RAJULBEN KAMLESHKUMAR SHAH S 59754 8.44
8/12/2011 531560 Aroma Enterprises PARULBEN DEVJIBHAI PATEL B 56200 51.20
8/12/2011 531560 Aroma Enterprises SHREE SUPRINIT TRADINVEST PVT.LTD S 56200 51.20
8/12/2011 500493 Bharat Forge JANUS INVESTMENT FUND A/C JANUS CONTRARIAN FUND S 1900000 263.00

NSE Bulk Deals to Watch - Dec 8 2011

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
08-DEC-2011,APOLLOHOSP,Apollo Hospitals Ltd,PCR INVESTMENTS LIMITED,BUY,1031000,679.67,-
08-DEC-2011,DHANBANK,Dhanlaxmi Bank Limited,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,469988,60.41,-
08-DEC-2011,DHANBANK,Dhanlaxmi Bank Limited,DEWAN HOUSING FINANCE CORPORATION LTD.,BUY,2000000,58.97,-

Sensex closes 389 points lower on heavy selling

Relentless selling pressure across the board dragged the Sensex 389 points lower and the Nifty 119 points down

Headlines for the day

Food Inflation at 6.6% versus 8%

2G scam: Court to decide on Swamy's plea against Chidambaram

Domestic sales of cars up by 7%, bikes by 22.67% in November

FM says FDI in retail suspended to avoid mid-term polls