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Thursday, February 07, 2008

Insights Monthly

Insights Monthly

Rural Electrification IPO to open on Feb 19 2008

Rural Electrification Corporation (REC), one of the leading public financial institutions in Indian power infrastructure, proposes to enter the capital markets on Feb. 19, 2008 with a public issue of 156.12 million equity shares of Rs 10 each through 100% book building process.

The issue comprises a fresh issue of up to 78.06 million equity shares by REC and an offer for sale of up to 78.06 million equity shares by the president of India acting through the ministry of power. The net issue to the public will be up to 152.21 million equity shares, after allowing for reservation of up to 3.90 million equity shares for subscription by eligible employees as defined in the red herring prospectus (RHP). The issue shall constitute nearly 18.18% of the fully diluted post-issue capital of REC. The Issue closes on Feb. 22, 2008 and the price band has been fixed at Rs 90 to Rs 105 a
share of Rs 10 each. IL & FS Investsmart Securities, ICICI Securities and SBI Capital Markets are helping the company to raise maximum of Rs 16.39 billion via this issue.

The company proposes to utilize the net proceeds from the fresh issue to augment its capital base to meet the future capital requirements arising out of growth in its assets, primarily its loan and investment portfolio due to the growth of the Indian economy and for other general corporate purposes including meeting the expenses of the issue. The company is seeking to strengthen its capital base to improve its borrowing capacity in order to support the future growth in its assets.

REC is one of the leading public financial institutions in Indian power infrastructure, engaged in the financing and promotion of transmission, distribution and generation projects throughout India. It occupies a key position in the GoI`s plans for the growth of the Indian power sector. Since its inception in 1969, the company`s mandate has evolved to permit it to finance all segments of the power sector throughout the country. It provides funding to clients and assists them in formulating and implementing various types of power project-related schemes. Its clients include public sector power utilities at the central and state levels and private sector power utilities. Additionally, it finances power projects for its joint sector clients. It aims to capitalize on the increasing private sector participation in the Indian power sector.

The company occupies a unique position within the area of rural electrification of India and it currently administer grants and provide loans as the nodal agency for the RGGVY, which is primarily aimed at the electrification of all villages in India. As a public sector undertaking, it has been accorded `Mini Ratna Grade-I` status by the GoI by virtue of its operational efficiency and financial strength, which affords greater operational freedom and autonomy in decision-making.

Domestically, it holds long-term borrowing ratings of `AAA`/Stable from CRISIL, `LAAA` from ICRA and `AAA(ind)` from Fitch, each of which is the highest long-term domestic rating of the respective agency. On an international basis, the company holds long-term borrowing ratings of `BBB-` and `Baa3` from Fitch and Moody`s, respectively, which are on par with sovereign ratings for India.

Nifty February futures at discount

Turnover in F&O segment declines

Nifty February 2008 futures were at 5087.35, at a discount of 45.90 points as compared to spot closing of 5133.25.

The NSE futures & options (F&O) segment turnover was Rs 40,921.83 crore, which was lower than Rs 42,234.95 crore on Wednesday, 6 February 2008.

Reliance Natural Resources (RNRL) February 2008 futures were at premium, at 151.55, compared to the spot closing of 150.90.

Reliance Energy (REL) February 2008 futures were at premium, at 1994.55, compared to the spot closing of 1987.30.

Reliance Communications (RCOM) February 2008 futures were at premium, at 646, compared to the spot closing of 644.65.

In the cash market, the S&P CNX Nifty lost 189.3 points or 3.56% at 5133.25.

Hero Honda, Parsvnath Developers, Madhucon Projects, Shoppers Stop, Dalmia Cement

Hero Honda, Parsvnath Developers, Madhucon Projects, Shoppers Stop, Dalmia Cement

Sistema investing big in India

Russian conglomerate Sistema will invest up to $5 billion (about Rs 20,000 crore) in India's fast growing telecom sector in the next three years to create a world-class telecom network across the country.

Sistema has finalised an agreement with Indian telecom services provider Shyam Telelink, the unlisted telecom services arm of the Shyam Telecom Group, to acquire 74% stake in the company.

Senior management of Sistema would accompany Russian Prime Minister Victor A Zubkov on his 3-day visit to India beginning February 11.

Shyam Telelink has got Letters of Intent for 22 circles on January 10 and is all set to get the spectrum to start rolling out mobile services network in association with Russian giant Sistema.

Shyam is an existing service provider in Rajasthan and is offering mobile services under the Unified Access Services (UAS) license.

Sistema has already committed $1 billion in investment for its plans in Shyam Telelink, said Alexender Goncharuk, president, Sistema.

"We will invest whatever it takes for a competitive world class all-India telecom network in the shortest possible time.The total investment in India would be in the range of $4-5 billion in the next three years," he added.

The deal with Shyam Telelink has also marked Sistema's entry into the Indian telecom sector. Sistema is the largest mobile operator in Russia, seventh in the world, and has over 81 million wireless subscribers.

Sistema's foundation businesses are telecommunications, high technology and real estate.

Insurance Sector

Insurance Sector

NSE Bulk Deal Watch - Feb 7 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
07-FEB-2008,BURNPUR,Burnpur Cement Limited,ANKITA VISHAL SHAH,BUY,253167,34.26,-
07-FEB-2008,BURNPUR,Burnpur Cement Limited,SETU SECURITIES PVT.LTD.,BUY,247225,35.05,-
07-FEB-2008,MONNETISPA,Monnet Ispat Ltd,MAVI INVESTMENT FUND LTD,BUY,293036,489.97,-
07-FEB-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,BUY,3141067,52.60,-
07-FEB-2008,NAGARFERT,Nagarjuna Fert & Chem,TRANSGLOBAL SECURITIES LTD.,BUY,2428644,52.59,-
07-FEB-2008,NAHARINDUS,Nahar Industrial Enterpri,ANUJ NAGPAL,BUY,200000,98.00,-
07-FEB-2008,NAHARINDUS,Nahar Industrial Enterpri,Vinamra Universal Traders Pvt.Ltd.,BUY,255000,98.10,-
07-FEB-2008,QUINTEGRA,Quintegra Solutions Ltd,STUPENDORS TRADERS PVT LTD,BUY,135000,155.00,-
07-FEB-2008,WANBURY,Wanbury Limited,SHASHIKANT BHAI PATEL,BUY,10000,132.00,-
07-FEB-2008,WANBURY,Wanbury Limited,ZATCO VYAPAAR PVT LTD,BUY,106800,132.00,-
07-FEB-2008,BURNPUR,Burnpur Cement Limited,ANKITA VISHAL SHAH,SELL,223167,34.70,-
07-FEB-2008,BURNPUR,Burnpur Cement Limited,SETU SECURITIES PVT.LTD.,SELL,247220,34.74,-
07-FEB-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,SELL,3141067,52.64,-
07-FEB-2008,NAGARFERT,Nagarjuna Fert & Chem,TRANSGLOBAL SECURITIES LTD.,SELL,2481244,52.78,-
07-FEB-2008,NAHARINDUS,Nahar Industrial Enterpri,ANUJ NAGPAL,SELL,200000,98.10,-
07-FEB-2008,NAHARINDUS,Nahar Industrial Enterpri,CITI GROUP GLOBAL MKT.MAURITIUS PVT.LTD.,SELL,337954,98.05,-
07-FEB-2008,QUINTEGRA,Quintegra Solutions Ltd,SUDHIR JAIN,SELL,135000,155.00,-
07-FEB-2008,WANBURY,Wanbury Limited,SHASHIKANT BHAI PATEL,SELL,110000,132.00,-
07-FEB-2008,WANBURY,Wanbury Limited,ZATCO VYAPAAR PVT LTD,SELL,9603,136.03,-

BSE Bulk Deals to Watch - Feb 7 2008

Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
7/2/2008 504629 ANIL SP STEL SHEETAL RAJESH JAIN B 50000 24.15
7/2/2008 505506 AXON INFOTEC ANMOL FINANCE COMPANY B 9000 58.50
7/2/2008 505506 AXON INFOTEC CHIRAG SECURITIES B 9000 58.50
7/2/2008 505506 AXON INFOTEC HETAL DHIREK RAJ B 9606 57.00
7/2/2008 505506 AXON INFOTEC SATYAM DWIREK RAJ S 9606 57.00
7/2/2008 500035 BALAJI DISTL JMP SECURITIES PVT. LTD. B 293342 40.58
7/2/2008 500035 BALAJI DISTL JMP SECURITIES PVT. LTD. S 294599 40.61
7/2/2008 512332 BIRLA CAP AYODHYAPATI INVESTMENT PVT. LTD. S 123599 14.22
7/2/2008 532931 BURNPUR JMP SECURITIES PVT. LTD. B 333950 35.05
7/2/2008 532931 BURNPUR JMP SECURITIES PVT. LTD. S 321438 34.77
7/2/2008 531682 CAT TECHNOL JMP SECURITIES PVT. LTD. S 160000 10.06
7/2/2008 531913 GOPAL IRON INTERFACE CAPITAL MKT PVT LTD S 64300 12.63
7/2/2008 531913 GOPAL IRON HIMAL K PARIKH HUF S 30000 12.63
7/2/2008 508918 GREYCELLS EN PRIME BROKING CO. INDIA LTD AC PWM B 60000 171.00
7/2/2008 508918 GREYCELLS EN PRAMODA H.SHAH S 33750 171.41
7/2/2008 508918 GREYCELLS EN TANIVIN TRADE FIN PRIVATE LTD. S 32900 170.01
7/2/2008 507794 KHAIT CHEM F SHRADHA PROJECT LTD S 56025 83.83
7/2/2008 512413 KHAITAN WVG VINAY SUDERSHAN GUPTA B 10000 64.68
7/2/2008 512413 KHAITAN WVG HARVARD TRADING PVT. LTD. S 4000 62.94
7/2/2008 590074 ORTINLABS LEPID SECURITIES PVT. LTD B 18910 18.52
7/2/2008 590074 ORTINLABS TURNKEY DEALERS PVT. LTD S 18910 18.48
7/2/2008 502563 SH BHAW PA M SUDHIR TANDON B 21699 11.25
7/2/2008 502563 SH BHAW PA M SUDHIR TANDON HUF S 21699 11.25
7/2/2008 524336 SH HARI CH E BHANU JAYANTILAL B 50881 45.01
7/2/2008 500389 SILVERLINE T BSMA LIMITED AC DR S 235000 57.00
7/2/2008 524212 WANBURY LTD SHASHIKANT A PATEL S 110000 132.00
7/2/2008 511246 WHITE LION A MAHESH RAMANLAL SHAH S 21200 10.36

Deepak Fertilizers

Deepak Fertilizers

Market Wrap - Sensex ends over 600 down

India`s benchmark index, Sensex extended declines on Thursday, paced by Hindalco Industries, Reliance Communications, NTPC and Reliance Industries, on concern that growth of the Asia`s third-biggest economy, India will slow down for the first time in 3 years. India is expected to grow at 8.7% in fiscal 2008, the lowest pace since 2005.

Global markets

European equities dropped in an early trade on Thursday taking clues from US markets together with drop in oil prices. US stocks plunged for a third day, paced by energy shares and retailers. Shares in Japan climbed led by mobile-phone operators and shipping companies following mobile-phone service providers reported rise in subscribers base and recommendation by Merrill Lynch for shipping stocks.

After opening at 18,198.68 points, a rise of 59.19 points over previous close, the benchmark index started falling drastically in the second half.

The 30-share index slid 612.56, points, or 3.38%, at 17,526.93, while the broad-based NSE Nifty closed at 5,133.25, down 189.30 points, or 3.56%.

Midcap Index declined 189.62 points, or 2.38%, and Small Cap Index slipped 210.18 points, or 2.02% on Thursday.

Out of the total 2,849 stocks traded at the BSE, 803 advanced, 2,002 declined while 44 remained unchanged.

All sectoral indices fell on Thursday. Drop in oil prices pulled Oil & Gas index lower by 4.41%, while other major losers include, metal which lost 4.08% and realty slipped 3.69%.

Movers and Shakers

Only gainer at the BSE Sensex was ACC, which gained 1.03% to close at Rs 772.70.

Major laggards were Hindalco Industries which lost 5.63%, Reliance Communications declined 5.51%, NTPC slid 5.13% and Reliance Industries fell 4.98%, while the rest dropped in the range of 5% to 2.5%.

Top Turnover

Reliance Natural Resources topped the turnover chart with Rs 5,697.90 million followed by Reliance Energy with Rs 3,389.30 million.

Reliance Entertainment - George Soros picks up stake

George Soros has picked up 3% stake in Reliance Entertainment for $100 million (Rs 400 crore). The stake sale puts the value of the company at around $3 billion (approximately Rs 12,000 crore).

Reliance Entertainment is the flagship and umbrella entertainment company of Reliance Anil Dhirubhai Ambani Group and 100% owned by Anil Ambani.

Reliance Entertainment has three main lines of business - Internet and new media, film entertainment and TV broadcasting.

A Reliance Entertainment spokesperson confirmed the development, and added: "We are delighted to have a sophisticated investor like George Soros as a stakeholder in the company that operates in a high growth and high potential entertainment sector offering a complete bouquet of innovative products and services to its audience."

Reliance Entertainment, under its Internet and new media initiatives, has already launched a number of ventures: Zapak, a gaming portal; Big Adda, a social network and social media venture; Big Flicks, an online and offline movie rentals business; and Jump Mobile, a mobile entertainment venture.

The company has signed up frontline directors like Farhan Akhtar - for an estimated Rs 300 crore for six films - Madhur Bhandarkar and Vivek Agnihotri for production. It has recently acquired controlling stake in India's largest production studio - ND Studio. It has also initiated allied ventures such as Big Music (music CDs), Home Video(video) and animation & special effects.

Post Market Commentary - Feb 7 2008

The market tumbled and closed on a deep red note. Heavy selling pressures across all the sectoral indices was witnessed after the mid session on the back of the reports by the government, which cited that the economy is likely to grow at a reasonable rate of 8.7% during the current fiscal as against 9.6% last year. The estimation of growth was slightly higher than then RBI''s projection of 8.5%, which led o the negative sentiments in the market. The cues from the global markets are not in favor, which also add to the sentiments. A lot of volatility was witnessed during the trading session but finally market takes a huge turn to close with heavy losses. The Small Caps and Mid Caps also did not survive from the bloodbath as they also faced heavy selling pressures across the counters. The BSE Sensex closed lower by 612.56 points at 17,526.93 while NSE Nifty fell by 189.3 points to close at 5,133.25. The BSE Mid Cap and Small Cap indices closed lower by 189.62 points and 210.18 points at 7,781.12 and 10,202.63 respectively.

BSE Metal index closed lower by 660.62 points at 15,528.84. Scrips that fell are Jindal Steel (6.98%), Bhushan Steel (6.31%), Hindalco (5.63%), Ispat Inds (4.95%), SAIL (4.91%).

BSE Realty index plunged by 384.76 points to close at 10,030.33. Losers Unitech (7.17%), Omaxe (7.03%), HDIL (4.20%), Ansal Infra (4.08%), Purvankara (3.73%).

BSE CG closed lower by 451.03 points at 16,120.62. Losers are Crompton Greaves (6.72%), Bharat Elec (5.69%), Lakshmi Machines (5.05%), L&T (3.97%), Areva (3.41%).

BSE Oil & Gas index fell by 492.17 points to close at 10,668.66. Scrips that dropped are RNRL (6.44%), Reliance Inds (4.98%), Cairn India (4.90%), RPL (4.36%), IOCL (3.86%).

BSE Bankex index fell by 247.59 points to close at 10,690.01. Scrips that fell are CentBOP (6.24%), Axis bank (6.21%), PNB (5.41%), ICICI bank (4.13%), Allahabad bank (3.34%).

BSE IT index closed lower by 226 points at 3,813.82 as HCL Tech (7.89%), Rolta (7.68%), Tech Mahindra (4.97%) closed in red.

Sensex plummets 613 points

The market’s southbound journey continued for the second session as slump in global indices and concerns of possible recession in the USA made the investors nervous, triggering a major sell-off. The Sensex resumed on a positive note at 18,199, up 60 points and hovered above its last close of 18,139 till the mid-morning trades. However, a strong bout of selling by afternoon saw the Sensex accumulate losses of 555 points to touch the day's low of 17,584. The Sensex dropped 3.38% and was down 613 points for the day at 17527. The Nifty shed 3.56% and was down 189 points at 5133.

All the sectoral indices were mauled and declined by 2-4% each. The BSE Oil & Gas index was the major loser and crashed by 4.38% followed by the BSE Metal index (down 4.35%), the BSE Realty index (down 4.19%), the BSE PSU index (down 3.68%), the BSE Teck index (down 3.63%) and the BSE Bankex index (down 3.03%). The BSE second-rung benchmark indices the BSE mid-cap index and the BSE small-cap index tanked by over 2% each.

The market breadth was negative. Of the 2,849 stocks traded on the BSE, 2,002 stocks declined, 803 stocks advanced and 44 stocks ended unchanged. Except ACC all the Sensex stocks ended at lower levels. Among the major losers Hindalco crashed by 5.83% at Rs163, Reliance Communications plunged by 5.51% at Rs644, NTPC slumped 5.13% at Rs206, Reliance Industries crumbled 4.98% at Rs2,425, Satyam Computer plummeted by 4.36% at Rs391, Bharti Airtel dropped 4.20% at Rs863, ICICI Bank shed 4.13% at Rs1,105 and L&T tanked 3.97% at Rs3,630. Other heavyweights also came under sustained selling pressure and lost 2-3% each. However, ACC gained 1.03% at Rs773.

Over 3.52 crore RNRL shares changed hands on the BSE followed by Ispat Industries (2.90 crore shares), Nagarjuna Fertilisers (1.98 crore shares), Reliance Petroleum (1.69 crore shares) and IFCI (1.62 crore shares).

Valuewise, RNRL registered a turnover of Rs569 crore on the BSE followed by Reliance Energy (Rs338 crore), Reliance Petroleum (Rs296 crore), Reliance Industries (Rs243 crore) and Future Capital (Rs211 crore).

Sensex sheds 613 points on setback in pivotals

The market plunged for a second day in a row today weighed down by weak sentiment in global markets. A strong GDP growth forecast for the current fiscal and a surge in domestic liquidity, failed to provide any respite for the markets.

The 30-share BSE Sensex slumped 612.56 points or 3.38% at 17,526.93. Sensex shed 647.21 points at the day's low of 17,492.28, hit in late trade. Sensex touched a high of 18,198.68 in the initial trade. At day's high it rose 59.19 points.

The broader CNX S&P Nifty was down 189.3 points or 3.59% at 5,133.25.

The current setback on the bourses has materialized despite a boost in liquidity in the secondary markets as investors have started getting refund of excess application money in the heavily subscribed Rs 11000-crore Reliance Power IPO. It, however, remains to be seen how much money from Reliance Power IPO refunds actually comes to the secondary market in the light of immense volatility witnessed on the bourses last month.

Sensex fell below the psychological 18,000 level. Selling was conspicuous in IT, oil & gas, metal, FMCG and realty stocks. All the sectoral indices on BSE were in red. Index heavyweights Reliance Industries, ICICI Bank and Larsen & Toubro declined. Reliance Communications fell sharply in late trade.

The market breadth was negative in contrast to a strong breadth in early trade. 29 out of 30 stocks from the Sensex pack were in red.

Cues from European markets which opened after Indian markets were negative. Most of the Asian markets were closed today.

India's economy is expected to expand at 8.7% in fiscal 2007/08, slower than 9.6% growth in 2006/07, which was its strongest pace in 18 years, government's central statistics office (CSO) today said. CSO has pegged manufacturing output growth at an annual 9.4% this fiscal compared with 12% growth in the previous year.

Farm output growth is estimated at 2.6% for the full year 2007/08 compared with 3.8% growth in 2006/07. Services sector growth is estimated at 10.7% for the year against 11.1% growth in 2006/07.

European Central Bank (ECB) holds a policy meeting later today, 7 February 2008. The ECB is widely expected to hold interest rates at 4%, and investor focus is likely to be on whether the ECB would keep its vigilance on inflation risks even as signs show that economic growth in the region may be slowing.

BSE clocked a turnover of Rs 6541 crore compared to Wednesday (6 February 2008)'s Rs 6308 crore.

Nifty February 2008 futures were at 5,087.35, at a discount of 45.9 points as compared to spot closing of 5,133.25.

The NSE's futures & options (F&O) segment turnover was Rs 40,921.83 crore, which was lower than Rs 42,234.95 crore on Wednesday, 6 February 2008.

The BSE Mid-Cap index was down 2.38% at 7,781.12, while the BSE Small-Cap was down 2.02% at 10,202.63. Both these indices outperformed Sensex.

BSE Metal index (down 4.08% to 15,528.84), BSE Oil & Gas index (down 4.41% to 10,668.66), BSE PSU index (down 3.58% to 8,350.80) and BSE Realty index (down 3.69% to 10,030.33) underperformed Sensex.

BSE Auto index (down 2.37% to 4,783.80), BSE Bankex (down 2.86% to 10,384.77), BSE Consumer Durables index (down 1% to 4,893.78), BSE Capital Goods index (down 2.72% to 16,120.62), BSE FMCG index (down 2.92% to 2,125.37), BSE Healthcare index (down 2.13% to 3,639.95), BSE IT index (down 2.85% to 3,705.30) and BSE Power index (down2.52% to 3,782.74) outperformed Sensex.

The market breadth was weak: on BSE 799 advanced as compared to 2,004 that declined. 34 stocks remained unchanged.

Oil & gas stocks plunged. India’s largest private sector firm by market capitalization and oil refiner Reliance Industries declined 4.98% at Rs 2,425. Cairn India (down 4.9% to Rs 199.05), ONGC (down 3.74% to Rs 988.50) and Gail (India) (down 2.57% to Rs 425.10) edged lower.

Metal stocks declined. Sterlite Industries (down 3.75% to Rs 758.50), National Alluminium Company (down 3.32% to Rs 377.10), Hindalco Industries (down 5.63% to Rs 163.30), Steel Authority of India (down 4.91% to Rs 210.30) and Tata Steel (down 3.51% to Rs 771.40) edged lower.

Software services exporters declined for a third day in a row due to a gloomy economic outlook in the United States, which contributes to more than half of their revenue. Satyam Computer Services (down 4.36% to Rs 390.85), Wipro (down 3.56% to Rs 409.85), Tata Consultancy Services (down 1.95% to Rs 882.95) and Infosys (down 1.97% to Rs 1,480.90) edged lower.

India’s largest private sector bank by assets ICICI Bank was down 4.13% to Rs 1,105.25.

India’s largest engineering & construction firm by revenue Larsen & Toubro down 3.97% to Rs 3,630.45.

India’s second largest telecom services provider by revenue Reliance Communications declined 5.51% to Rs 644.05.

Realty stocks declined. Indiabulls Real Estate declined 1.86% to Rs 649.80.It came off from its high of Rs 696. Indiabulls Infrastructure (IIL), a subsidiary of the company, has acquired 100% shareholding of Catherine Builders and Developers (Catherine) from DLF Home Developers.

Unitech (down 7.69% to Rs 359), Housing Development Infrastructure (down 5.67% to Rs 920) and DLF (down 3.09% to Rs 843) edged higher.

FMCG majors declined. ITC fell 3.48% to Rs 193 and Hindustan Unilever was down 2.68% to Rs 199.55.

India's biggest cement maker in terms of production capacity, ACC rose 1.03% to Rs 772.70 and was the lone gainer from Sensex pack.

Grasim Industries declined 2.41% to Rs 2,819. Aditya Birla Group reportedly intends to scale up its shareholding in its cement flagship Grasim Industries to at least 40%, although it did not set a time frame for the same. According to reports, the move is in line with the idea of holding a majority stake, which according to the reports, is at least 40% in all the major companies.

Reliance Natural Resources was volume topper on BSE with 3.52 crore shares. Ispat Industries (2.9 crore shares), Nagarjuna Fertilisers and Chemicals (1.98 crore shares), Reliance Petroleum (1.69 crore shares) and IFCI (1.63 crore shares) were other volume toppers on BSE in that order.

Reliance Natural Resources clocked highest turnover of Rs 569.79 crore on BSE. Reliance Energy (Rs 338.93 crore), Reliance Petroleum (Rs 296.96 crore), Reliance Industries (Rs 244.06 crore) and Future Capital Holdings (Rs 211.85 crore) were other turnover toppers on BSE in that order.

European markets were weak. Stock markets in France, Germany and UK fell between 1% to 1.17%.

In Asia, Japan’s Nikkei index was up 0.82%. Stock markets in China, Hong Kong, South Korea, Singapore, and Taiwan were closed.

US stock indices dropped for a third straight session on Wednesday, 6 February 2008, after US Federal Reserve officials cast doubt on the outlook for more interest rate cuts. The Dow Jones industrial average lost 65.03 points, or 0.53%, at 12,200.10. The Standard & Poor's 500 Index lost 10.19 points, or 0.76%, at 1,326.45. The Nasdaq Composite Index shed 30.82 points, or 1.3%, at 2,278.75.

Sensex had plunged 523.67 points or 2.81% at 18,139.49 on Wednesday, 6 February 2008, as Asian markets tumbled after another recessionary piece of US economic data sent Wall Street shares down nearly 3% on Tuesday, 5 February 2008.

Reliance Power, which raised a record $3 billion in its initial share sale in January 2008, said on Friday, 1 February 2008, it had begun refunding excess application money to investors. The initial public offer had received bids for $190 billion.

But depressed stock markets forced property developer Emaar MGF Land to extend its initial public offer until 11 February 2008 and lower its indicated price for a second time. Wockhardt Hospitals which extended its IPO by two days to 7 February 2008, had received bids for only 13% of its 2.51 crore shares issue by Wednesday, 6 February 2008.

Sensex has lost 3,679.84 points or 17.35% from a record high hit on 10 January 2008, due to heavy selling by FIIs amid credit crisis in the United State and fears of a US recession. Huge unwinding of positions in the futures & options segment was another key trigger for the fall

HOT! - Reliance Value Unlocking :-)

Reliance- Value Unlocking !!!!!

As per company sources Value unlocking and demergers that may happen in Reliance group
companies over the next 1- 2 years .

Companies to be demerged from Reliance Energy:

-Reliance Power

-Reliance Cables

-Reliance Transmissions Line Towers

-Reliance Electric

-Reliance Bijlee

-Reliance Billing Systems (client billing IT company)

-Reliance Home Power (powering residential units)

-Reliance Industrial Power Supply

Companies to be demerged from Reliance Communication:

-Reliance Handsets

-Reliance Handset Accessories

-Reliance Mobile Batteries

-Reliance SIM Cards

-Reliance Mobile Marketing

-Reliance Tower With Power

-Reliance Tower (without power)

Companies to be demerged from Reliance Capital:

-Reliance Equity Investment

-Reliance Debt

-Reliance Gilts

-Reliance Bank

-Reliance Finance

-Reliance Mutual Fund

-Reliance Life Insurance

-Reliance General Insurance

EMAAR MGF - Strategy

Looks like EMAAR hasn't learnt its lessons and has lowered the price band by Rs 10

If the issue gets subscribed by some kind of manipulation, unless the market conditions improve, there is no way that the Issue will get make any listing gains for the retail investor. Do keep in mind that you will get full allotment because retail interest is so low and HNI interest is almost nil.

EMAAR MGF placed 5% of its equity to Deutsche Bank - they should probably withdraw from the issue and let them only buy the shares.

We recommend that you withdraw from the issue (if you really made a mistake of applying!).

Forward this link to all the people who have applied or plan to apply!

Got an opinion different from above ? Know something about EMAAR that we don't - Leave a comment and let us know.

Market may open lower on weak global cues

After witnessing a sharp slump of over 500 points in yesterday's trades, the market is likely to remain shaky as global markets fell further. Although FII have been providing cushion by remaining net buyers, the sentiment is likely to remain bearish. Among the key domestic indices, the Nifty may get support at 4800 and a break below this level could see the index slip further to 4550. The Sensex has a likely support at 16000 and may test higher levels at 18700.

US indices closed lower on Wednesday, after the discouraging remarks by a Fed official and worrisome news from Macy's. With the Dow Jones tumbling by 65 points to close at 12200. The Nasdaq declined 31 points on weak tech stocks and closed at 2279.

All the Indian ADRs ended with sharp declines following a slump in the domestic market. VSNL slipped over 3% while Tata Motors and VSNL , Infosys, Satyam, Wipro, Rediff and Patni Computers dropped 1-2% each. However, HDFC Bank gained marginally.

Crude oil prices fell marginally, with the Nymex light crude oil for March series fell by $1.27 to close at $87.14 a barrel. In the commodity segment, the Comex gold for April delivery jumped $14.70 to settle at $905 an ounce.

Morning Call - Feb 7 2008

Market Grape Wine :

In House :

Nifty at a supp of 5255 and 5172 with resis at 5355 and 5410

Cash: Buy GMRinfra above 182.30 with a TGT of 189 and a SL of 179.5

Buy Indiacement above 212 with a TGT of 218 and a SL of 209.40

F&O: Sell VSNL below 482 with a TGT of 462 and a SL of 490

Sell SunTv below 335 with a TGT of 322 and a SL of 341

Out House :

Markets at a support of 18018 & 17886 levels with resistance at 18456 & 18654 levels .

Buy : RIL & REL

Buy : Tisco & sail

Buy : SBIN & HDFCBank

Buy : JPASSO & JpHydro

Buy : IBullsReal

Buy : SKumar & Aban

Buy : Geship

Buy : BajaHind & Balrampur

Buy : Noida , Adhunik & RNRL

Dark Horse : IBullreal ,Geship , Noida , IOlBroad , Aban , , RIL , Sbin , & GujNreCoke


Market may extend losses

The market may edge lower as US stock indexes dropped for a third straight session on Wednesday, 6 February 2008, after US Federal Reserve officials cast doubt on the outlook for more interest rate cuts, driving the Nasdaq into bear market territory. Most of the Asian markets are closed today and tomorrow for the Lunar New Year holiday.

Sensex had plunged 523.67 points or 2.81% at 18,139.49 on Wednesday as Asian markets tumbled after another recessionary piece of US economic data sent Wall Street shares down nearly 3% on Tuesday, 5 February 2008. Wednesday’s sharp fall on the bourses was despite a boost in liquidity in the secondary markets as investors have started getting refund of excess application money in Reliance Power IPO. It, however, remains to be seen how much money from Reliance Power IPO refunds actually comes to the secondary market in the light of immense volatility witnessed on the bourses last month.

Reliance Power, which raised a record $3 billion in its initial share sale in January 2008, said on Friday, 1 February 2008, it had begun refunding excess application money to investors. The initial public offer had received bids for $190 billion.

It also remains to be seen if the strong domestic liquidity will offset selling by FIIs. FIIs sold shares worth a huge Rs 13035.70 crore last month amid ongoing credit crisis in the US and in the backdrop of US recession fears looming large.

As per provisional data, FIIs sold shares worth a net Rs 485.94 crore on Wednesday, 6 February 2008. Local funds bought shares worth a net Rs 357.32 crore on that day.

FIIs were net sellers to the tune of Rs 2,086 crore in the futures & options segment on Wednesday. According to data released by the NSE, FIIs were net sellers of index futures to the tune of Rs 1,728.59 crore and bought index options worth Rs 75.18 crore. They were net sellers of stock futures to the tune of Rs 428.65 crore and sold stock options worth Rs 3.50 crore.

In US on Wednesday, the Dow Jones industrial average lost 65.03 points, or 0.53%, at 12,200.10. The Standard & Poor's 500 Index lost 10.19 points, or 0.76%, at 1,326.45. The Nasdaq Composite Index shed 30.82 points, or 1.3%, at 2,278.75.

The Nasdaq's woes worsened after the bell, with network equipment maker Cisco Systems dropping more than 7% after the tech bellwether forecast disappointing third-quarter revenue growth, citing economic concerns. That news spurred an after-hours sell-off in other big technology companies, including Apple and Intel and drove stock index futures lower.

Japan’s Nikkei 225 average was down 0.19%. Markets in China, Hong Kong, Indonesia, Malaysia, Singapore, South Korea and Taiwan are closed today, 7 February 2008 and tomorrow, 8 February 2008, for the Lunar New Year holiday.

Even if the US goes into the recession, it may not impact India’s economic growth in a big way given that domestic demand is a key driver of the Indian economy. India’s economy is expected to post strong growth for a long period due to favourable demographics. Moreover a healthy investment cycle will continue to support India’s growth through a self-perpetuating cycle of income creation, savings and investment. The government will today unveil its forecast on GDP growth in the current fiscal year. The announcement is expected at about 11:00 IST.

Corporate earnings growth remains decent. Deutsche Bank expects 20% compounded annual growth rate in earnings of 30-Sensex firms during the period from FY 2007 (year ended 31 March 2007) to FY 2009 (year ending 31 March 2009).

Pre Market Watch - Feb 7 2008

The Indian Market is likely to have a negative opening due to unfavoring cues from the global markets. On Tuesday, The market closed on a deep red note on the back of heavy selling pressures across the sectoral indices. Backed by the unfavoring weak cues from the global markets, the domestic market opened with heavy losses. The market struggled throughout the trading session and was unable to recover from the initial fall as the cautious prevailed in the market. The Small Caps and Mid Caps also joined the benchmark indices as they also faced the selling pressures. All the sectoral indices closed in red. The BSE Sensex closed lower by 523.67 points at 18,139.49 while NSE Nifty fell by 161.35 points to close at 5,322.55.We expect that the market will remain range bound during the trading session.

On Wednesday, the US market closed in negative territory. The Dow Jones Industrial Average (DJIA) closed lower by 65.03 points at 12,200.10. S&P 500 index fell by 10.19 points to close at 1,326.45 and NASDAQ dropped by 30.82 points to close at 2,278.75.

Indian ADRS ended in negative. In technology sector, Wipro fell by (2.77%) along with Satyam by (2.59%) and Infosys by (0.10%). In banking sector, ICICI bank fell by (1.70%) while HDFC grew by (0.48%). VSNL slipped by (3.24%).

Today, from the Asian markets, Nikkei is trading lower by 104.21 points at 12,995.03. The markets in China, Hong Kong, South Korea, Indonesia, Malaysia, Singapore, Taiwan and Vietnam were closed for the Chinese Lunar New Year holidays.

The FIIs on Wednesday stood as net buyer in equity. The gross equity purchased was Rs2,918.40 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,341.50 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs576.90 Crore and net debt was Rs0.00 Crore.

Today, Nifty has support at 5,237 and resistance at 5,433 and BSE Sensex has support at 17,826 and resistance at 18,569.

IPO Grey Market - Reliance Power, EMAAR MGF

Reliance Power 450 140 to 150

Emaar MGF 530 to 630 12 to 15

J. Kumar Infraprojects 110 Discount

Cords Cable Ind. 135 3 to 5

KNR Construction 170 Discount

Onmobile Global 440 12 to 15

Bang Overseas 207 10 to 12

Shriram EPC 290 to 330 Discount

IRB Infra 185 20 to 25

Wockhardt Hospital 225 to 260 Discount

Manjushree Extrusion 45 Discount

Tulsi Extrusions 80 to 85 10 to 12

SVEC Construction 85 to 95 3 to 4

India Cement Sector

India Cement Sector

Trading calls - Feb 7 2008

Nifty (5322) Support 5200 Resistance 5450

Buy GNFC (205) SL 201
Target 212, 215

Buy IOB (180) SL 176
Target 187, 190

Buy Indiabulls Realty(662) SL 656 Target 675, 678

Sell IVRCL Infra (436) SL 441 Target 428, 425

Sell Bata (175) SL 179
Target 167, 165

Against all odds!

The odds of hitting your target go up dramatically when you aim at it.

The odds may seem to be against the bulls. Just when sentiment started to feel better, in came another jolt from Wall Street. We see a cautious start this morning given the lack of cues from Asian markets and a lower closing in the US market. After that, trading will turn more choppy and cues from European markets that will open in the afternoon may influence trade.

With mid-caps and small caps holding steady, don’t be surprised if select heavyweights are pushed higher to portray a feel good factor. We expect that to happen if not later in the day then at least tomorrow, irrespective of global cues this time. In short, we see some bull power coming in.

The ECB and Bank of England are scheduled to announce their decisions on interest rates. A softening stance from these central banks could perk up the sentiment. But all this may happen after our market closes.

With markets across the world sinking in line with the weak US trend, the local sentiment once again took a beating yesterday. A sharp selloff in key Asian markets unnerved investors, and shook their confidence yet again. Market breadth was negative and even the traded volume and turnover were higher from Tuesday. The 500-point fall in the Sensex yesterday is likely to serve as a grim reminder to investors, particularly the smaller ones, that the worst may not be over as yet.

The US economy is virtually in a recession or is very close to being in one. The Chinese economy is also slowing and the economic condition in Europe and Japan is nothing to write home about. There is a concerted effort underway by the governments and central banks in these countries to reverse the slowdown. This may improve prospects for the global economy somewhat, but a protracted and painful correction is imminent.

What kind of bearing this will have on India is anybody's guess though, the nature of our economic growth (which is more driven by domestic factors) means that we will not be hit that hard. Only time will prove whether this 'decoupling' theory is correct or not. But, as far as the market is concerned, the volatility and anxiety is here to stay.

FIIs were net sellers of Rs4.86bn (provisional) in the cash segment on Wednesday. At the same time, local institutions were net buyers of Rs3.57bn. In the F&O segment, they were net sellers of Rs20.86bn. On Tuesday, foreign funds poured in Rs5.77bn in the cash segment. FIIs have now pumped in US$1.34bn in the past three days after offloading more than US$4bn in the previous fortnight or so. Mutual Funds were net sellers of Rs2.97bn in the cash segment on Tuesday.

In Asian markets this morning, the Nikkei in Tokyo was down 104 points or 0.8% at 12,995 while the S&P/ASX 200 index in Sydney slipped 35 points or 0.6% at 5574 and the PSEi in Philippines was flat at 3222. The rest of the Asian markets are closed for the Lunar New Year holiday.

US stocks fell for a third consecutive day, led by energy shares and retailers, after oil prices dropped, retailer Macy's cut its earnings forecast and a Federal Reserve official signaled that higher inflation may prevent more rate reductions.

The S&P 500 Index erased a gain of as much as 1.2% after Macy's said it will eliminate 2,300 jobs, sending retail stocks to their steepest three-day drop in five years. Chevron fell to a nine-month low as oil declined by more than $1 a barrel. Memory chipmaker Micron Technology fell the most since October 2006 after an analyst said computer companies have stockpiles of unused parts.

The S&P 500 was down 10.19 points, or 0.8%, to 1,326.45. The Dow Jones Industrial Average declined 65 points, or 0.5%, to 12,200.1. The Nasdaq Composite Index dropped 31 points, or 1.3%, to 2,278.75, the lowest since October 2006, weighed down by a 5.7% drop in Apple.

Market breath was negative. More than two stocks fell for every one that rose on the New York Stock Exchange.

Speaking before the Birmingham Rotary Club, Federal Reserve Bank of Philadelphia President Charles Plosser said it is important to keep inflation in check, raising concern among some investors and experts that the Fed may not be as aggressive in cutting rates going forward.

"With inflation creeping up, we have to be particularly alert for rising inflation expectations. It is important that inflation expectations remain stable," said Plosser, a voting member of the Federal Open Market Committee (FOMC).

Major US indexes had rallied earlier in the session after the Labor Department said that worker productivity was stronger than expected in the fourth quarter. The news helped counter some of the recession fears that have plagued Wall Street since last year

After the closing bell, network equipment maker Cisco Systems reported earnings that met Wall Street expectations but warned of slower growth going forward.

Treasury prices rose, lifting the yield on the benchmark 10-year note to 3.6% from 3.58% late on Tuesday. In currency trading, the dollar gained versus the euro and slipped versus the yen.

US light crude oil for March delivery fell $1.27 to $87.14 a barrel on the New York Mercantile Exchange. COMEX gold for April delivery surged $14.80 to $900.70 an ounce.

Stocks in Europe advanced. The pan-European Dow Jones Stoxx 600 index rose 0.5% to 320.35, led by defensive issues like utilities. The UK's FTSE 100 closed up 0.1% at 5,875.40, while Germany's DAX 30 rose 1.2% to 6,847.51 and the French CAC-40 added 0.8% to 4,816.43.

The euro fell for a third day today against the dollar and the Japanese yen on speculation that the European Central Bank (ECB) President Jean-Claude Trichet will signal that borrowing costs may need to be cut to bolster growth.

Latin American stocks closed lower. In Brazil, the benchmark Bovespa stocks index closed 3.5% lower at 58,969. Markets in Brazil were shut on Monday and Tuesday on account of the Carnaval celebrations.

Mexico's stocks closed lower for a second-consecutive session. The market's leading IPC index of the 35 most-traded shares fell 0.6% to 27,929.29. Among the other emerging markets, the RTS index in Russia shed 1% to 1947 while the ISE National-30 index in Turkey was down 2.5% at 53,940.

Markets likely to consolidate

Markets were unable to extend gains as bears made a come back after being on the sidelines for past three sessions. Markets opened with a 700 points negative gap mirroring losses in the equity markets across US and Asia. However, after a sharp dip key indices managed to recover gradually from its days low finally closing above the 18,100 mark.

The 30-share Sensex slipped 523 points or 2.8% to close at 18,139. The NSE Nifty lost 161 points to close at 5,322.

Among the 30-scrips of Sensex, Infosys, RIL, ICICI Bank, Bharti Airtel and HDFC were among the major laggards. On the other hand, REL, RCOM, Cipla and ACC were among the major gainers.

Among key secotral indices, The BSE IT index (down 5.5%), BSE Consumer Durable index (down 4.5%), BSE Metal index (down 3.6%), BSE Auto index (down 2.4%) and BSE Realty index (down 2.4%).

Syndicate Bank slipped 1% to Rs94. The company announced that it would sell 80mn shares to large investors. The scrip has touched an intra-day high of Rs95 and a low of Rs89 and has recorded volumes of over 4,00,000 shares on NSE.

Suzlon slipped by 3% to Rs315. The company’s Australian unit won an order for supplying 27 wind turbines. The scrip touched an intra-day high of Rs322 and a low of Rs311 and recorded volumes of over 30,00,000 shares on NSE.

Deepak Fertilizer rallied by over 19% to Rs141 after the company announced that it would form joint venture with Yara. Deepak Fertilizer would hold 51% and Yara 49% stake in the venture. The scrip touched an intra-day high of Rs141 and a low of Rs108 and recorded volumes of over 7,00,000 shares on NSE.

HDIL slid over 4% to Rs976. According to reports the company has secured development rights of Bombay Oxygen Corporation’s land in Mulund, Mumbai for Rs2bn. The scrip has touched an intra-day high of Rs1013 and a low of Rs936 and recorded volumes of over 10,00,000 shares on NSE.

Baja Hindustan advanced 1.3% to Rs231 following reports that the company would invest Rs2.75bn for setting-up a particle and fibre board unit in western Uttar Pradesh. The scrip touched an intra-day high of Rs239 and a low of Rs210 and recorded volumes of over 46,00,000 shares on NSE.

Subex gained 1.6% to Rs297 after the company announced that it bagged a contract from Slovenia-based telecom operator, Telecom Slovenije, to install solutions that will protect from various frauds. The scrip touched an intra-day high of Rs303 and a low of Rs265 and recorded volumes of over 17,000 shares on NSE.

News Snippets:

A nine company consortium including Bharti Airtel and VSNL, will build a high capacity fibre optic submarine cable from India to France via Egypt and Italy. (FE)

IOC may seek board approval for its Rs50bn Haldia paraxylene plant. (BL)

L&T plans to invest US$5bn on power generation business; targets 5,000MW capacity in next five years. (DNA)

SCI may invest US$800mn in its shipbuilding foray. (BS)

Tata Motors subsidiary, TAL Manufacturing Solutions, to make floor beam for Boeing’s 787 Dreamliner aircraft. (Mint)

Ispat Group has acquired two coal blocks in Mozambique. (BS)

Arvind Mills may demerge its brands and apparel retailing businesses in to separate companies. (DNA)

Mundra Port to invest Rs100bn to raise cargo capacity. (FE)

Ranbaxy Laboratories gets US FDA approval to manufacture and market a paediatric drug. (BS)

Vedanta plans Rs60bn plant in Bengal. (TOI)

Tata Group plans to foray into retail broking business. (BL)

Mercator Lines to acquire three dredgers for US$100mn in the next six months. (BS)

Central Bank of India may reduce retail loan rates by 50bps. (BL)
Sintex Industries raises Rs6bn through a QIP issue. (FE)

Vijaya Bank may acquire a bank in northern or western India. (BL)

Bhushan Steel to invest Rs260bn to build a 12mn tons capacity in West Bengal, Jharkhand and Orissa. (BS)

ICICI Bank is not likely to cut interest rates in near term (BL)

Maruti Suzuki India to export 250,000 cars from Mundra port. (TOI)

Economic Front Page:

3G licenses could raise US$5bn for the government in the first year itself. (Mint)

The Union Cabinet is unlikely to hike fuel prices this week. (BL)

According to the Director General of Hydrocarbons (DGH), India has 2,000 tons of cubic ft gas hydrates pool. (FE)

The Government may cut excise duty on power equipments and other inputs from 16% to 8% in the upcoming Budget. (ET)

India’s domestic Information Communication Technology market may reach US$24bn by 2011, according to Gartner Inc. (Mint)

The Government seeks $500mn ADB loans for Indian Railways expansion plans. (BL)

The Government may consider a profit reserve plan to offset losses incurred by exporters due to rupee appreciation. (FE)

Airport hotels in Delhi may miss the November 2010 target. (Mint)

Stationery goods, electrical appliances and 46 other products may be removed from small scale industries list. (ET)

TRAI likely to recommend more FDI in FM radio segment. (FE)

Alok Industries

Alok Industries

Social Picks - IFCI is a ...

New stock for the Social Picks - IFCI

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Vote on the POLL which is on the right side!

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Bartronics India

Bartronics India

NSE Bulk Deal Watch - Feb 6 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
06-FEB-2008,GPIL,Godawari Power And Ispat,BSMA LIMITED,BUY,245927,284.02,-
06-FEB-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,BUY,2195075,48.33,-
06-FEB-2008,NAGARFERT,Nagarjuna Fert & Chem,P R B SECURITIES PRIVATE LTD,BUY,2586573,49.66,-
06-FEB-2008,NAGARFERT,Nagarjuna Fert & Chem,TRANSGLOBAL SECURITIES LTD.,BUY,3291036,50.29,-
06-FEB-2008,RADICO,Radico Khaitan Limited,REL CAP TRUSTEE CO LTD A/C REL EQ OPP FUND,BUY,919939,107.00,-
06-FEB-2008,VOLTAMP,Voltamp Transformers Limi,RBA FINANCE & INVESTMENT CO.,BUY,150000,1585.00,-
06-FEB-2008,GPIL,Godawari Power And Ispat,BNP PARIBAS ARBITRAGE SNC,SELL,240000,284.00,-
06-FEB-2008,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,SELL,2195075,48.36,-
06-FEB-2008,NAGARFERT,Nagarjuna Fert & Chem,P R B SECURITIES PRIVATE LTD,SELL,2548160,49.72,-
06-FEB-2008,NAGARFERT,Nagarjuna Fert & Chem,TRANSGLOBAL SECURITIES LTD.,SELL,3288962,50.14,-
06-FEB-2008,NIITLTD,NIIT Limited,CLSA MAURITIUS LTD,SELL,3085487,114.00,-
06-FEB-2008,RADICO,Radico Khaitan Limited,VONTOBEL EMERGING MARKETS EQUITY FUND (LUX),SELL,920900,107.00,-
06-FEB-2008,RADICO,Radico Khaitan Limited,VONTOBEL FAR EAST EQUITY FUND (LUX),SELL,1434300,107.00,-
06-FEB-2008,VOLTAMP,Voltamp Transformers Limi,BNP PARIBAS ARBITRAGE,SELL,150000,1585.00,-

Construction Sector

Construction Sector

Today's Pick - Action Construction Equipment

We recommend a buy in Action Construction Equipment from a short-term perspective. From the charts of the stock it is clearly visible that it has been on a steady long-term uptrend since it March 2007 low of Rs 162. However, after marking an all-time high of Rs 670 in early January, the stock was on a short-term corrective downtrend till it found support at Rs 400 levels. The long-term up trendline coincides with the significant support level at around Rs 400. In late Janu ary, the stock bounced off from Rs 400 level and reversed the short-term corrective downtrend recently. For past two weeks, the stock has been hovering around Rs 450 level. The daily momentum indicator has recovered from the oversold zone and is likely to enter the neutral region. Besides, the long-term uptrend is still in place. We are bullish on the stock in the short-term. We expect the stock to move up to our target level of Rs 522 in the short-term. Investors with short-term horizon can buy the stock with stop loss at Rs 400 levels.

Via Businessline

India Strategy - Feb 7 2008

India Strategy - Feb 7 2008

Daily Trends, Derivatives - Feb 7 2008

Daily Trends, Derivatives - Feb 7 2008

Daily Technicals, Futures - Feb 7 2008

Daily Technicals, Futures - Feb 7 2008

EMAAR cuts price - makes lower end at 530

There seems to be no respite for primary markets as initial public offers (IPOs) continue to get a tepid response from investors.

The latest example is Emaar MGF’s mega IPO, which has not just been extended by five days, its price band has also been revised once again. The issue will now close on February 11, according to investment banking sources.

The lower end of the price band has been brought down to Rs 530 from Rs 540 a share. The shares will now be priced between Rs 530 and Rs 630 a share. The company had earlier on January 31 revised the price band to Rs 540-Rs 630 from Rs 610-Rs 690 a share.

Emaar MGF’s IPO had received 76.612 million bids, or 75 per cent of the issue of 102.57 million shares, by 7 pm. And the bids were mostly at the lower end of the price band, data from the National Stock Exchange (NSE) showed.

“The IPO market appears to be more like a vegetable market. First, try to bargain by lowering the price band and extending days. If investors are not interested, lower the price band further and yet again extend the closure by a few more days to woo them. I think it is high time investment bankers learn a lesson and try to arrive at realistic valuations. I don’t know what significant difference would Emaar’s decision to reduce the lower end of the price band by Rs 10 make,” said S P Tulsian, independent equity advisor.

The Wockhardt Hospitals IPO is also in trouble after the company revised the price band on January 30. Though the issue was technically open for subscription on January 31, no bids were received.

Consequently, the issue opened for subscription on February 1 and was set to close yesterday. But it was subscribed by 0.1 times. The date for the issue to close was extended by two days and it will now close tomorrow.

Data from NSE showed that the IPO has received 3.26 million bids, or 13 per cent of the issue of 25.08 million shares, by 7 pm. The SVEC Constructions IPO was subscribed 0.05 times at 7 pm.

The IRB Infrastructure IPO that closed yesterday was subscribed by about 4.3 times but the offer price has been fixed at Rs 185 a share, which is at the lower end of the price band. Even KNR Constructions has fixed the offer price at the lower end of the band — Rs 170 a share.