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Tuesday, February 12, 2008

GSS America Infotech - Current Subscription


Sr.No. Category

No. of times of total meant for the category
1 Qualified Institutional Buyers (QIBs)

1(a) Foreign Institutional Investors (FIIs)

1(b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)

1(c) Mutual Funds

1(d) Others

2 Non Institutional Investors

2(a) Corporates

2(b) Individuals (Other than RIIs)

2(c) Others

3 Retail Individual Investors (RIIs)

3(a) Cut Off

3(b) Price Bids

4 Employee Reservation

4(a) Cut Off

4(b) Price Bids

3 More days to Go for this one, can it set a record for the least subscribed issue ? we don't even remember which one was it ?

NSE Bulk Deal Watch - Feb 12 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
12-FEB-2008,GSFC,Gujarat State Fert Ltd.,RELIANCE LIFE INSURANCE CO.LTD,BUY,974495,210.00,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ABHISHEK RATHORE,BUY,190217,102.26,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,AMBIT SECURITIES BROKING PVT. LTD.,BUY,246205,103.80,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ANGEL INFIN PRIVATE LIMITED,BUY,118373,101.17,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ASHOK BABUBHAI THAKKER-TRADING ALC,BUY,201619,98.63,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,579977,98.60,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,B K SHAH AND CO,BUY,104598,98.37,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,CHOKHANI SECURITIES LTD,BUY,123682,96.45,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,CPR CAPITAL SERVICES LTD.,BUY,558772,98.47,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,CREDENTIAL STOCK BROKERS LIMITED,BUY,300736,99.92,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,DINDAYAL BIYANI STOCK BROKERS LTD.,BUY,139428,98.47,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,DINESH MUNJAL,BUY,184759,105.08,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,DYNAMIC STCOK BROKING (I) PVT LTD,BUY,265743,99.90,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,157857,105.83,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,HARBUX SINGH SIDHU,BUY,617432,102.34,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,INDU MAHENDRA SHAH,BUY,116997,102.36,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,KHANDWALA TRADELINK CO,BUY,155366,96.91,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,319388,104.82,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,MANISH VRAJLAL SARVAIYA,BUY,191004,94.98,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,MANJUL SINGH,BUY,115184,94.09,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,MUKESH BHAGAT,BUY,176626,94.88,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,NAMAN SECURITIES & FINANCE PVT LTD,BUY,294761,99.93,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,PASHUPATI CAPITAL SERVICES PVT. LTD.,BUY,144319,100.22,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,PRASHANT JAYANTILAL PATEL,BUY,509865,100.34,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,PRAVIN JUMKHALAL SHAH,BUY,199315,103.73,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,R.M. SHARE TRADING PVT LTD,BUY,538321,95.77,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ROHIT VALJI VEDANT,BUY,127214,105.38,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,SANJAY BHANWARLAL JAIN,BUY,246922,99.20,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,SHAH HEMANG DINESH,BUY,289455,105.78,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,TRANSGLOBAL SECURITIES LTD.,BUY,254678,98.17,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,VELBAI KHIMJI CHHEDA,BUY,156747,104.27,-
12-FEB-2008,JSWSTEEL,JSW Steel Limited,MACQUARIE BANK LIMITED,BUY,1064655,1124.79,-
12-FEB-2008,MAHLIFE,Mahindra Lifespace DevLtd,BEAR STEARNS & CO. INC.,BUY,208257,588.11,-
12-FEB-2008,TIDEWATER,Tide Water Oil Co. (India,ARION COMMERCIAL PVT LTD,BUY,6000,3290.00,-
12-FEB-2008,TIPSINDLTD,Tips Industries Limited,NIMA SPECIFIC FAMILY TRUST,BUY,250000,74.00,-
12-FEB-2008,GSFC,Gujarat State Fert Ltd.,CITIGROUP GLOBAL MARKETS MAURITIUS PVT.LTD,SELL,1000000,210.09,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ABHISHEK RATHORE,SELL,190217,102.83,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,AMBIT SECURITIES BROKING PVT. LTD.,SELL,246205,104.02,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ANGEL INFIN PRIVATE LIMITED,SELL,118373,101.68,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ASHOK BABUBHAI THAKKER-TRADING ALC,SELL,200619,98.99,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,579977,99.12,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,B K SHAH AND CO,SELL,76997,97.35,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,CHOKHANI SECURITIES LTD,SELL,123682,96.44,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,CPR CAPITAL SERVICES LTD.,SELL,558772,98.61,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,CREDENTIAL STOCK BROKERS LIMITED,SELL,300736,100.15,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,DINDAYAL BIYANI STOCK BROKERS LTD.,SELL,139428,99.15,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,DINESH MUNJAL,SELL,184759,106.40,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,DYNAMIC STCOK BROKING (I) PVT LTD,SELL,265743,100.60,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,157857,105.86,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,HARBUX SINGH SIDHU,SELL,617432,102.65,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,HSBC MUTUAL FUND,SELL,237347,91.75,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,INDU MAHENDRA SHAH,SELL,116997,102.81,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,KHANDWALA TRADELINK CO,SELL,155377,96.83,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,319388,105.01,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,MANISH VRAJLAL SARVAIYA,SELL,191004,95.52,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,MANJUL SINGH,SELL,115184,94.85,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,MUKESH BHAGAT,SELL,176626,94.94,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,NAMAN SECURITIES & FINANCE PVT LTD,SELL,251115,99.82,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,PASHUPATI CAPITAL SERVICES PVT. LTD.,SELL,144319,99.82,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,PRASHANT JAYANTILAL PATEL,SELL,509865,101.52,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,PRAVIN JUMKHALAL SHAH,SELL,199315,103.81,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,R.M. SHARE TRADING PVT LTD,SELL,538321,96.03,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,ROHIT VALJI VEDANT,SELL,127214,105.65,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,SANJAY BHANWARLAL JAIN,SELL,246922,99.51,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,SHAH HEMANG DINESH,SELL,289455,106.11,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,TRANSGLOBAL SECURITIES LTD.,SELL,254678,97.92,-
12-FEB-2008,JKIL,J.Kumar Infraprojects Lim,VELBAI KHIMJI CHHEDA,SELL,156747,104.76,-
12-FEB-2008,JSWSTEEL,JSW Steel Limited,MACQUARIE BANK LIMITED,SELL,5798,1129.00,-
12-FEB-2008,TIDEWATER,Tide Water Oil Co. (India,DEVSAR VYAPAR PVT LTD,SELL,6000,3290.00,-
12-FEB-2008,TIPSINDLTD,Tips Industries Limited,Gandiv Investment Pvt Ltd,SELL,250000,74.00,-

BSE Bulk Deals to Watch - Feb 12 2008

Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
12/2/2008 505506 AXON INFOTEC V R P FINANCIAL SERVICES PVT LTD B 21000 48.00
12/2/2008 500446 CAROL INFO MINAL B PATEL B 233779 59.00
12/2/2008 500446 CAROL INFO BHARAT J PATEL S 233779 59.00
12/2/2008 532419 D-LINK INDIA MINAL B PATEL B 299754 70.06
12/2/2008 532419 D-LINK INDIA BHARAT J PATEL S 299754 70.06
12/2/2008 514167 GANESH POLYT MANI CAPITALS LIMITED B 50000 14.89
12/2/2008 531777 INTELLVIS SO SUDHIR JAIN S 91050 118.00
12/2/2008 532940 J KUMAR INFR ANGEL INFIN PRIVATE LIMITED B 135344 100.38
12/2/2008 532940 J KUMAR INFR R.M.SHARES TRADING PVT LTD. B 491478 95.79
12/2/2008 532940 J KUMAR INFR AMIT M GALA B 122524 99.22
12/2/2008 532940 J KUMAR INFR H.J.SECURITIES PVT.LTD. B 494624 99.45
12/2/2008 532940 J KUMAR INFR ANGEL INFIN PRIVATE LIMITED S 135344 99.21
12/2/2008 532940 J KUMAR INFR R.M.SHARES TRADING PVT LTD. S 491478 95.77
12/2/2008 532940 J KUMAR INFR AMIT M GALA S 122524 99.56
12/2/2008 532940 J KUMAR INFR H.J.SECURITIES PVT.LTD. S 494624 99.53
12/2/2008 512413 KHAITAN WVG VINAY SUDERSHAN GUPTA B 6523 54.87
12/2/2008 523236 SHRENUJ &COM SWISS FINANCE CORP LTD B 2000000 51.00
12/2/2008 512048 SPLASH MEDIA NAMDEO H MORE S 7000 101.00
12/2/2008 531866 SUBHKAM CAP SUBHKAM CAPITAL INVEST. PVT LTD B 27000 1239.13
12/2/2008 519228 TEMPT.FOODS EVERSIGHT TRADECOMM PVT LTD S 217764 185.00

A blind man Bluff..

See Saw trading for the market with srong start across the global markets. Asian indices showed some strength, this helped Indian indices to open in green. But, Sensex lost its gained and traded volatile till the end. All the sectors closed in red while Banking and Oil & gas sector remainedon the positive side. Markets which have been driven by the US recession news, led by Fed cut, Reliance Power IPO are clueless at present. Indices seem to be news driven at moment. No action has been noticed as the volume have drastically dropped. Investors have lost faith in the IPO's after the Reliance Power IPO failed to deliver. Few of the New IPO's which were scheduled for this week like SVEC Construction which withdrew its IPO today. a few days back Wochardt and Emaar MGF withdrew their IPO due to voaltile market condition. Asian ended in green and Europe's trading in green.

Sensex closed down by 23 points at 16608.01.Weighing on the Sensex were losses in TCS (864.8,-4 percent), Rel Energy (1535.75,-3 percent), Hero Honda (671.1,-3 percent), ACC (718.25,-3 percent) and RCVL (575.7,-2 percent). Losses were restricted by gains in ICICI Bk (1063.75,+3 percent), RIL (2324.14,+2 percent), Ranbaxy (370.25,+1 percent), Bharti Tele (855.8,+1 percent) and SBI (2057.39,+1 percent).

ognizant has the highest exposure to US (82%) and BFSI sector (47%) among all top tier Indian IT vendors. Due to its business mix, Cognizant is highly exposed to the slowdown in the US market. But it managed to give good results and lived upto the expectation. Why cannot the Indian Companies?. We are still cautious here.. There is no change in business environment. But, still the markets talks of good results from the IT side for the next few quarters. IT companies have been increasing their revenue intakes from the Europe geography as compared to the US. But, the markets globally have a different view to this as one can see the impact of the suprime not only in US but also globally.

Industrial production for the month December grew by 7.6% as compared to 13.4% last year same month. Cumulative growth during Apr-Dec was 9.0% v/s 11.2% last year. Slow growth in manufacturing, mining and electricity sectors has pushed down Industrial Growth. DecemberIndustrial grwoth was dragged by Manufacturing sector decelarated 8.4% from 14.5% last year. The mining and electricity sectors, too, performed poorly during the month recording growth rates of 3% and 3.8%, respectively, when compared with 6.1% and 9.1%, respectively, in December 2006.

Fundementally: Sectorally the revenue growth has been slowed down. Ecomomy seems to braking. We see np positive trigger.

Technically Speaking Sensex traded in a ranged of 400 points before ending lmarginally lower. Sensex has formed an 'Inside day'. Inside days are usually days of indecision and when they show up on charts after a large swing, it is an indication that market players are evaluating the recent move. Nifty and Sensex have continued to stay under their respective 200DMA and this is a sign of weakness.

Post Market Commentary - Feb 12 2008

The Indian market tumbled in the final trading hours of the session to close in the negative territory. Taking the favoring cues from the global markets, the Indian market opened on a firm note but unable to sustain at higher levels and pare all its gains. The volatility gripped the market throughout the trading session. The favoring cues from the domestic scenario like India''s industrial output rose 7.6% in December 2007 from a year earlier, accelerating from the previous month''s downwardly revised 5.1% also failed to hold the gains of the market. From the sectoral front, the bankex stocks remained in the limelight as most buying is seen from these baskets. The Small Caps and Mid Caps were the most hit as they face heavy selling pressures across the counters. The BSE Sensex closed lower by 22.90 points at 16,608.01 and NSE Nifty fell by 18.75 points to close at 4,838.25. The BSE Mid Cap and Small Cap indices closed lower by 161.45 points and 266.42 points at 7,058.38 and 9,173.68 respectively.

BSE Bankex index closed higher by 122.48 points at 9,867.36. Gainers are Axis bank (6.65%), ICICI bank (2.71%), Kotak bank (2.46%), Andhra bank (2.32%), IOB (1.52%).

BSE Metal index closed marginally lower by 1.20 points at 14,273.05 as Welspun Guj (6.38%), Sesa Goa (5.82%) and JSW Steel (3.01%) closed higher while Jindal Saw (4.09%) and Jindal Stainless (3.46%) closed lower.

BSE Realty index dropped by 125.49 points to close at 9,042.84. Losers are Penland (7.93%), Ansal Infra (7.41%), Sobha Dev (3.54%), Indbul Real (3.40%), HDIL (1.75%).

BSE CG plunged by 160.86 points to close at 14,873.21. Scrips that fell are BEML (4.91%), Kalpataru Power (4.36%), Lakshmi Machines (4.12%), Punj Lloyd (3.96%).

BSE Oil & Gas index inched up by 40.52 points to close at 9,926.32. Scrips that gained are Cairn India (5.26%), HPCL (2.20%), Reliance Inds (2.17%) and Gail India (1.09%).

BSE IT index closed lower by 58.18 points at 3,789.98 as NIIT (7.51%), Patni Comp (5.84%), Karut Net (5%) closed lower.

Market slips amid sharp volatility

Market gyrated sharply between zones throughout the trading session and swung 400 points during the intra-day trades. Taking its cue from firm global indices, the Sensex started on a positive note at 16,813, but failed to sustain the gains. Profit booking on every rise saw the Sensex slip below 16,500 mark and touch the day's low of 16,565. While market remained lacklustre with negative bias, renewed buying in afternoon trades helped the Sensex to surge to an intra-day high of 16,967, up 336 points from its previous close. However, a fresh round of profit-taking towards the fag end saw the Sensex pare its gains and end at 16,608, down 23 points, while the Nifty shed 19 points to close at 4,838.

The broader market remained weak. Of the 2,712 stocks traded on the Bombay Stock Exchange (BSE), 2,237 stocks declined, 443 stocks advanced and 32 stocks ended unchanged. Barring the BSE Bankex index and the BSE Oil & Gas index, the other sectoral indices ended in the negative territory. The BSE CD index dropped 3.62% at 4,343, the BSE Auto index shed 1.57% at 4,509 and the BSE PSU index was down 1.49% at 7,659.

Among the major losers, TCS dropped 4.25% at Rs865, M&M slumped 3.03% at Rs579, Reliance Energy shed 2.94% at Rs1,536, ACC lost 2.63% at Rs718, Reliance Communications declined 2.49% at Rs576 and Tata Steel slipped by nearly 2.15% at Rs710. However, ICICI Bank notched up gains of 2.71% at Rs1,064, Reliance Industries rose 2.17% at Rs2,324, while Ranbaxy, Bharti Airtel and SBI closed with modest gains.

Consumer durables stocks came under sharp selling pressure. Blue Star tumbled by 6.56% at Rs428, Videocon Industries slipped 4.99% at Rs371, Titan Industries slumped 3.53% at Rs988 and Gitanjali Gems fell 2.06% at Rs281.

Over 3.36 crore Reliance Natural Resources shares changed hands on the BSE followed by Reliance Power (2.30 crore shares), J Kumar Infraprojects (2.05 crore shares), Reliance Petroleum (1.05 crore shares) and Ispat Industries (1.01 crore shares).

Valuewise, Reliance Power registered a turnover of Rs821 crore on the BSE followed by Reliance Capital (Rs433 crore), RNRL (Rs403 crore), Reliance Energy (Rs264 crore) and Reliance Industries (Rs237 crore).

Volatile trading ends with a loss

Recovery in industrial production and positive global cues failed to offer solace to Indian investors after a sharp setback on Monday that was caused by poor debut of India's biggest IPO Reliance Power. Key indices shot up in early trade but were unable to sustain at higher level and finally ended the volatile session with losses.

Banking and oil & gas stocks were in demand. IT stocks dropped. Broader market declined, as reflected in the weak market breadth. 22 out of 30 stocks from the Sensex pack were in the red.

European market, which opened after Indian market, were trading higher. Asian markets, which opened before Indian market, were mostly in green.

India's industrial output rose 7.6% in December 2007 from a year earlier, accelerating from the previous month's downwardly revised 5.1%, helped by stronger manufacturing, government data released today afternoon showed.

The 30-share BSE Sensex fell 22.90 points or 0.14% at 16,608.01. The Sensex shed 65.43 points at the day’s low of 16,565.48 hit in late trade. The Sensex had gained 335.81 points at the day's high of 16,966.72, hit in early trade.

The Sensex has shed 1531.48 points or 8.44% in last five trading sessions to the current 16,630.91 from 18139.49 on Wednesday, 6 February 2007.

The broader CNX S&P Nifty fell 18.75 points or 0.39% at 4838.25.

The BSE Mid-Cap index fell 2.24% at 7,058.38, while the BSE Small-Cap was down 2.82% at 9,173.68. Both these indices underperformed the Sensex.

The market breadth was poor: On BSE 443 advanced as compared to 2237 that declined. 32 stocks remained unchanged.

BSE clocked a turnover of Rs 5276 crore compared to Monday (11 February 2008)'s Rs 7,678.44 crore.

The Nifty February 2008 futures settled at 4783.15, at a discount of 55.10 points as compared to the spot closing of 4838.25.

The NSE's futures & options (F&O) segment turnover was Rs 36223.50 crore, which was higher than Rs 41257.27 crore on Monday, 11 February 2008.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries rose 2.17% to Rs 2324.15.

India’s largest engineering and construction firm by revenue Larsen & Toubro fell 1.28% to Rs 3269.05.

Anil Dhirubhai Ambani Group firm Reliance Power fell 4.82% to Rs 354.55 on volume of 2.30 crore shares on BSE. On Monday, 11 February 2008, the stock had debuted at Rs 547.80, a premium of Rs 21.73% over the IPO price of Rs 450.

Among the Sensex losers, TCS slipped 4.25% to Rs 864.80, Mahindra & Mahindra shed 3.03% to Rs 579.05, Reliance Energy skid 2.94% to Rs 1535.75, ACC fell 2.63% to Rs 718.25, Reliance Communication declined 2.49% to Rs 575.70 and Tata Steel declined 2.15% to Rs 710.45.

Among the Sensex gainers, Ranbaxy Laboratories moved up 1.24% to Rs 370.25, Bharti Airtel rose 0.81% to Rs 855.80 and State Bank of India rose 0.59% to Rs 2057.40.

The BSE Bankex rose 1.26% to 9,867.36. It outperformed the Sensex. India’s largest private sector bank by assets ICICI Bank rose 2.71% to Rs 1063.75. Axis Bank jumped 6.65% to Rs 989.80, Kotak Mahindra Bank jumped 2.46% to Rs 818.55, Andhra Bank moved up 2.32% to Rs 86.05 and Canara Bank rose 1.42% to Rs 292.50.

The BSE Oil & Gas index rose 0.41% to 9,926.32. It outperformed the Sensex. Cairn India spurted 5.26% to Rs 199.95, HPCL moved up 2.20% toRs 260.45 and Gail India rose 1.09% to Rs 390.15.

IT stocks declined after a decent rise on Monday, 11 February 2008. The BSE IT index fell 1.51% at 3,789.98. It underperformed the Sensex. NIIT slumped 7.51% to Rs 105.95, TCS fell 4.25% to Rs 864.80, HCL Technologies skid 2.45% to Rs 249.25, Satyam Computer declined 0.70% to Rs 420.90, Infosys Technologies fell 0.86% to Rs 1,545.40 and Wipro fell 0.40% to Rs 421.80.

From the side counters, Jet Airways jumped 6.54% to Rs 770, Welspun Gujarat Stahl Rohren spurted 6.38% to Rs 406, Balaji Telefilms moved up 6.17% to Rs 209.10, Sun TV Network gained 5.69% to Rs 323, Orchid Chemicals & Pharmaceuticals rose 4.82% to Rs 218.50 and Nirma gained 4.52% to Rs 184.

Debutant J Kumar Infraprojects settled at Rs 102.70 BSE, a discount of 6.64% over IPO price of Rs 110. The stock debuted at Rs 100 on BSE, a discount of 9.09% over the IPO price.

Tea maker Parry Agro Industries jumped 5% to Rs 2043. The board of Parry Agro Industries at the meeting held on 11 February 2008 approved delisting of the equity shares of the company from the Bombay Stock Exchange. Extraordinary general meeting (EGM) of the shareholders has been fixed on 7 March 2008.

Electrical equipment maker Apar Industries spurted 4.34% to Rs 255. The board of Apar Industries, on Monday, 11 February 2008 approved a proposal to acquire majority stake in Uniflex Cables. According to a release issued by Apar to the BSE, the size of the deal, which will mainly be funded through internal accruals, is close to Rs 50 crore with a controlling stake of 42% in Uniflex Cables run by the Baid family.

Reliance Power clocked the highest turnover of Rs 821.72 crore on BSE. Reliance Capital (Rs 433.36 crore), Reliance Natural Resources (Rs 403.14 crore), Reliance Energy (Rs 264.14 crore) and Reliance Industries (Rs 237.62 crore), were the other turnover toppers on BSE in that order.

Reliance Natural Resources registered highest volume of 3.36 crore shares on BSE. Reliance Power (2.30 crore shares), J Kumar Infraprojects (2.05 crore shares), Reliance Petroleum (1.05 crore shares) and Ispat Industries (1.01 crore shares).

In Europe, key indices in UK, France and Germany were up by 0.18% to 0.52%. Asian markets were mostly in the green. Key benchmark indices in Hong Kong, Singapore, South Korea and Japan were up by 0.04% to 1.35%. However, Taiwan's Taiwan Weighted index was down 1.57%. Chinese stock market was closed.

US stocks rose on Monday, 11 February 2008, rebounding from the worst weekly loss in five years, as bargain-hunting and takeover talk sparked gains in the technology sector and higher oil prices lifted energy stocks. The Dow Jones industrial average gained 57.88 points, or 0.48%, to 12,240.01. The Standard & Poor's 500 index advanced 7.84 points, or 0.59%, to 1,339.13, and the Nasdaq Composite index shot up 15.21 points, or 0.66%, to 2,320.06.

Motorola Inc and Nortel Networks Corp may combine their wireless networking units, according to The Wall Street Journal. Meanwhile, the board of directors of Yahoo! rejected the $31 bid of Microsoft saying the proposal substantially undervalues the company.

On Monday 11 February 2008, the 30-share BSE Sensex slumped 833.98 points or 4.78% at 16,630.91, its third biggest fall in point terms, on heavy selling pressure as investors fretted over the dismal debut of Reliance Power. Weak global cues, too, weighed on bourses. The broader CNX S&P Nifty was down 263.35 points or 5.14% at 4857 on that day

Rural Electrification, GSS America Infotech, Shriram EPC

Rural Electrification 90 to 105 12 to 15

GSS America InfoTech 400 to 440 Discount

Cords Cable Ind. 135 3 to 5

KNR Construction 170 Discount

On Mobile Global 440 8 to 10

Bang Overseas 207 5 to 7

Shri Ram EPC 300 Discount

IRB Infra 185 12 to 15

Manjushree Extrusion 45 Discount

Tulsi Extrusions 85 10 to 12

SVEC Construction 80 to 90 Discount

Market may open positive

The modest rally in the US markets and a rise in several Asian indices in the ongoing trading session may help the domestic indices pull-back from lower levels. However, surge in oil prices and worries about FIIs remaining net sellers of equities in the domestic market could force the players to remain on the sidelines. The Nifty on the downside may dip to 4700 while on the upside it may test higher levels in the 5000-6000 range. The Sensex has a likely support at 16320 and may face resistance at 17200.

US indices bounced back on Monday as investors set aside worries about AIG's financials and Yahoo's rejection of Microsoft's proposed takeover. While the Dow Jones advanced by 58 points at 12240, the Nasdaq added 15 points to close at 2320.

Most of the Indian floats trading on the US bourses buckled under selling pressure. Tata Motors and HDFC Bank were the major losers and lost over 3% each, while Infosys, Dr Reddy's, Wipro, MTNL and ICICI Bank declined over 1% each. VSNL, however, jumped 9.20 % while Satyam and Rediff ended with decent gains.

Crude oil prices advanced further after the biggest US refinery Valero Energy Corp. shut its Delaweare refinary. The Nymex light crude oil for March delivery moved up by $1.82 to close at $93.59 a barrel, off its intra-day high of $94.50 per barrel. In the commodity space, the Comex gold for April series added $4.40 to settle at $926.70 a troy ounce.

Market may head higher

The market may head higher tracking firm global markets. However volatility may continue to remain high.

The Index of Industrial Production (IIP) data for December 2007 is due today, 12 February 2008. IIP had slowed down 5.3% in November 2007 as against 15.8% in November 2006. The sluggish growth was due to high base effect as well as deceleration in the industry.

Asian markets were trading higher today, 12 February 2008. Hang Seng (up 2.17% at 23,107.35), Singapore's Straits Times (up 1.23% at 2,903.61), Japan's Nikkei (up 0.12% at 13,032.25), South Korea's Seoul Composite (up 0.44% at 1,647.88), advanced. However ,Taiwan's Taiwan Weighted declined 1.47% at 7,561.18. Chinese stock markets was closed.

US stocks rose on Monday, 11 February 2008, rebounding from the worst weekly loss in five years, as bargain-hunting and takeover talk sparked gains in the technology sector and higher oil prices lifted energy stocks. The Dow Jones industrial average gained 57.88 points, or 0.48%, to 12,240.01. The Standard & Poor's 500 index advanced 7.84 points, or 0.59%, to 1,339.13, and the Nasdaq Composite index shot up 15.21 points, or 0.66%, to 2,320.06.

Motorola Inc and Nortel Networks Corp may combine their wireless networking units, according to The Wall Street Journal. Meanwhile, the board of directors of Yahoo! rejected the $31 bid of Microsoft saying the proposal substantially undervalues the company.

Back home, on Monday 11 February 2008, the 30-share BSE Sensex slumped 833.98 points or 4.78% at 16,630.91, its third biggest fall in point terms, on heavy selling pressure as investors fretted over the dismal debut of Reliance Power. Weak global cues, too, weighed on bourses. The broader CNX S&P Nifty was down 263.35 points or 5.14% at 4857 for the day

As per provisional data, foreign institutional investors (FIIs) sold shares worth Rs 1268.67 crore on Monday, 11 February 2008. Domestic institutional investors (DIIs) were net sellers of shares worth Rs 22.27 crore on that day.

FIIs were net sellers to the tune of Rs 287.93 crore in the futures & options segment on Monday, 11 February 2008. They were net sellers of index futures to the tune of Rs 862.29 crore and bought index options worth Rs 144.49 crore. They were net buyers of stock futures to the tune of Rs 487.87 crore and sold stock options worth Rs 58 crore.

Pre Market Commentary - Feb 12 2008

The Indian Market is likely to have a positive opening as the cues from the global markets are in favor. On Monday, the market tumbled and faced a blood bath during the trading session on the back of miserable debut of Reliance Power in the capital market. The investors booked the profits on these scrips to clear up their positions. The market opened on a weak note tracking the unfavoring cues from the Asian markets and trade on the back foot throughout the trading session. The negative sentiments on the poor performance of the Reliance Power IPO weighed across all the sectoral indices that led to the heavy selling across the counters. The State Bank of India which slashed its Prime Lending Rate by 25 basis point to 12.50% from 12.75% also failed to give a boost to the market. The Mid Caps and Small Caps also joined the rally of the benchmark indices as they faced heavy selling pressures. The BSE Sensex closed lower by 833.98 points at 16,630.91 and NSE Nifty fell by 263.35 points to close at 4,857. We expect that the market may gain some grounds during the trading session.

On Monday, the US market closed in green. The Dow Jones Industrial Average (DJIA) closed higher by 57.88 points at 12,240.01. S&P 500 index grew by 7.84 points to close at 1,339.13 and NASDAQ fell by 15.21 points to close at 2,320.06.

Indian ADRS ended mixed. In technology sector, Satyam grew by (5.30%) along with Infosys by (4.41%) and Wipro by (2.79%). In banking sector, ICICI bank and HDFC bank fell by (2.50%) and (1.69%) respectively. VSNL fell by (3.52%).

Today, the major stock markets in Asia are trading firm. Hang Seng is trading higher by 491.24 points to trade at 23,107.35 along with Japan''s Nikkei trading up by 15.01 points at 13,032.25 and Singapore Strait Times trading at 2,903.61 up by 35.32 points.

Today, Nifty has support at 4,712 and resistance at 4,976 and BSE Sensex has support at 16,126 and resistance at 17,119.

Morning Call - Feb 12 2008

Market Grape Wine :

In House :

Nifty at a supp of 4800 with resis at 4928 and 5029. Mkt to open on a positive note.

Profit booking at higher levels not ruled out.

Cash: Buy Reliance above 2275 with a TGT of 2317 and a SL of 2260

Buy TATAsteel above 726 with a TGT of 743 and a SL of 714

F&O: Buy Satyam above 423 with a TGT of 445 and a SL of 412

Buy ZEETv above 242 with a SL of 235

Out House :

Markets at a support of 16515 & 16363 levels with resistance at 16969 & 17171 levels .

Markets to hold at 4800 levels on Nifty if closes below that we can see a level of 4580 to 4620 levels .

Buy : RIL

Buy : Tisco & sail

Buy : SBIN & IciciBnak

Buy : INFY & satyam

Buy : IBullsReal & Ibulls

Buy : SKumar & Aban

Buy : Kotak & Jpasso

Buy : BajaHind & Balrampur

Buy : Neyvelli & MRPL

Dark Horse : RIL , INFY , Satyam , INFY , REL , Sbin , & GujNreCoke

Trading Calls - Feb 12 2008

Nifty 4857 Supp 4600 Ress 4970

Buy BPCL (417) SL 412
Target 427, 431

Buy BILT (150) SL 146
Target 158, 161

Buy JSW Steel (1100) SL 1085 Target 1135, 1145

Sell Aurobindo (300) SL 305
Target 290, 288

Sell MTNL (121) SL 125
Target 112, 109

Today's Pick - Lanco Infratech

We recommend a sell in the Lanco Infratech stock from a short-term perspective. It is clearly evident from the charts of Lanco Infratech that the stock had been on long-term uptrend from its April 2007 low of Rs 137 to its all-time high of Rs 887 marked in the middle of December 2007. However, the stock has since reversed direction and has declined from its all-time high. The bearish divergence in the daily momentum indicator supports this trend reversal. The stock has bee n on a medium-term downtrend since mid-December.

During this downtrend, the stock conclusively penetrated the 50-day moving average line and then the long-term uptrend line in the last week of January. Following this, on February 11, the stock tumbled by 16 per cent, decisively penetrating the support range of Rs 450-475. We also note that the stock has been falling amidst increasing volumes for the past three trading sessions. The daily momentum indicator has re-entered the bearish zone, indicating further room for decline.

We are bearish on the stock in the short-term. We expect the stock’s medium-term downtrend to persist until the stock touches our target price of Rs 300 in the short-term. Investors with a short-term perspective can sell or book profit in the stock with stop loss at Rs 455 levels.

Fuse udgaya

Don't curse the darkness, light a candle!

The reasons for a power failure can be a defect in a power station, damage to a power line or the overloading of electricity mains. After an overload of bids for the IPO, the Reliance Power stock sank to a low of Rs355 before closing 17% down at Rs372. The issue has brought to light that in markets besides frenzy a lot more matters.

Coming to today's market, we see some bounce back as global cues are not so bad. However, one should not get trapped by any rally, no matter how big it is. The near-term outlook remains uncertain given the anxiety over a US led global slowdown. Even our own economy is slowing. Watch out for the monthly industrial production figures at noon, which may confirm the ongoing moderation. If the Indian economy slows further, we may see the RBI relenting in the coming months. That, along with a 'good' budget, could perk up the mood in the market. But, that's just hope as of now.

Investors, especially the small ones, will take the longest to recover from the shocking events of the past few weeks. Their only hope is one Mr. P. Chidambaram, who will present the UPA regime's last full-fledged Union Budget at the end of this month.

Back to Reliance Power, (we know you wish to forget it) to be fair enough, the markets tanked, there was gloom all around and most stocks were beaten down, some even more than Reliance Power. But then for investors at large, this was an Ambani company. How could it fail? The fact remains that investors (we don’t’ have a word for the listing gains category) were mostly looking at just profiting on listing gains. Given the frenzy when the issue was open, people should have increased their holding below the issue the price if they believed the story.

A lot of introspection and post-mortem will surely take place after the dismal listing of RPower. The withdrawal of the two big IPOs will weigh on both, the primary and the secondary markets for some time to come.

FIIs were net sellers of Rs12.69bn (provisional) in the cash segment on Monday. Local institutions too were net sellers of Rs222.7mn. In the F&O segment, FIIs were net buyers of Rs6.17bn. On Thursday, foreign funds pulled out Rs5.28bn from the cash segment. Mutual Funds were net sellers of Rs2.12bn in the cash segment on Wednesday.

Shares of J. Kumar Infraprojects Ltd. will face the music as the company makes its debut on the bourses today.

Asian markets are trading mixed this morning. The Hang Seng in Hong Kong was up 373 points at 22,989 while the Nikkei in Tokyo was up only 15 points at 13,032. Tokyo markets were shut yesterday for a public holiday.

The Kospi in Seoul gained 7 points to 1648 while the Straits Times in Singapore added 35 points to 2903. But, the Taiex in Taiwan was down 109 points to 7564. The MSCI Asia Pacific Index rose 0.2% to 139.48, after earlier dropping 0.4 percent, at 11:54 a.m. in Tokyo.

US stocks ended marginally higher, with technology, retail and commodity shares sparking a broader advance. Investors shrugged off worries about AIG's worsening financials and Yahoo's rejection of Microsoft's proposed takeover bid.

All the three main indices had slumped in the morning after Dow component AIG's regulatory filing fueled concerns that the insurer will have to write off more bad bets on sub-prime mortgage debt.

But the tone improved in the afternoon with a variety of stocks bouncing back after last week's slump.

AIG said in a filing that the value of its risky debt portfolio has plunged more than it initially thought, and that it will have to change the way it values certain complex credit vehicles. AIG shares plunged 11.7% and weighed on other financial stocks.

Exxon Mobil and ConocoPhillips led energy producers to their third-straight gain. Chevron climbed after being added to the Dow Jones Industrial Average. Yahoo! shares rose to a three-month high following its rejection of Microsoft's $44.6bn takeover bid as too low.

The S&P 500 Index added 8 points, or 0.6%, to 1,339.13 after earlier falling as much as 0.8%. The Dow gained 58 points, or 0.5%, to 12,240.01, erasing a drop of as much as 113 points and rebounding from the worst week in almost five years. The Nasdaq advanced 15 points, or 0.7%, to 2,320.06.

Market breadth was positive. About nine stocks advanced for every seven that fell on the New York Stock Exchange.

Shares of Honeywell and Altria slipped on news that Dow Jones will be removing the two from the industrial average starting next week. The two companies will be replaced by Bank of America and Chevron.

Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.61% from 3.64% late on Friday. In currency trading, the dollar fell against the euro and the yen. COMEX gold for April delivery gained $4.40 to $926.70 an ounce.

US light crude oil for March delivery added $1.82 to settle at $93.59 a barrel in New York. Crude prices are being pressured by concerns that Venezuelan President Hugo Chavez will cut off his country's oil supply to the US after Exxon Mobile was authorized to freeze $12bn in assets belonging to Venezuela's recently nationalized oil interests.

European stocks slipped with banks under pressure after French bank Societe Generale announced a steeply discounted rights offering. Insurers fell after AIG was rebuked by its own auditor over how it valued derivatives. The pan-European Dow Jones Stoxx 600 index ended 0.9% lower to 312.59.

Germany's DAX 30 dropped 0.4% to 6,743.54, while the French CAC-40 slipped 0.6% to 4,682.70, while the UK's FTSE 100 shed 1.3% to 5,707.70 as producer price inflation touched a 16-year high.

In the emerging markets, the Bovespa in Brazil rallied 2.65% to 60,643 while the IPC index in Mexico jumped 2.1% to 28,789. The RTS index in Russia climbed 2.5% to 1917 but the ISE National 30 index in Turkey was down 1.4% at 51,270.

Further decline on cards

The bear attack continued as markets ended in red for fourth straight trading session. Weak global cues coupled with a poor listing of India’s largest IPO further dented the sentiments of markets players on D-Street.

The Power stocks were among the biggest losers. Among the other major losers in the Power index were Tata Power (down 12.2%), NTPC (down 7%), Power Grid (down 7%) and BHEL (down 6%). The IT stocks were the out-performers for the day as the index itself was up 0.13%. Heavyweights like Satyam Computer, Infosys and TCS were among the leading gainers.

Finally, the 30-share Sensex closed at 16,630 losing 833 points. It touched an intra-day high of 16,457 and a low of 17,427. The NSE Nifty closed at 4,857 losing 263 points after hitting an intra-day high of 5,126 and a low of 5,803.

Overall about 243 stocks advanced, 2,459 stocks declined while 35 stocks remained unchanged. Among the BSE 30 index only 5 stocks advanced and 25 stocks declined.

Among the 30-scrips of Sensex, Reliance Industries, REL, L&T, SBI and Rcom were among the major laggards. However; bucking the negative trend were Satyam, Infosys, Maruti, Wipro and TCS.

All the hype and hoopla surrounding the launch of Reliance Power vanished in a flash, as the stock got hammered right from the moment it listed. It just could not cope with the immense selling pressure after it managed to open at Rs525 on NSE.

The stock constantly lost ground and hit a low of Rs355. Finally, the stock managed to recoup towards the end to close at Rs372, translating into a discount of 17% on its debut.

The Rs125bn issue was subscribed 73 times. The QIBs was oversubscribed 82.5 times, Non Institutional Investors was oversubscribed 159.6 times and Retail investor was oversubscribed 13.6 times. The price band for the issue was fixed between Rs405 to Rs450 per share.

Reliance Power was expected to list around Rs500-550 as per the unofficial rates in the grey market. This itself was substantially down from the initial premium of around Rs900 when the company launched the IPO. The premium shrunk gradually due to weak market sentiment and after Wockhardt Hospitals and Emaar MGF withdrew their public issues.

Given the size of the issue, it was a no-brainer that Reliance Power would clock massive volume and turnover. Within first 10 minutes of trading, RPower accounted for almost 70% of the cash turnover on both the exchanges. Volumes recorded for the day were approximately over 130mn on the NSE and over 60mn on the BSE.

On the BSE RPower’s turnover was Rs26.4bn. The same on the NSE stood at a whopping Rs56bn, accounting for almost 40% of the total turnover on the exchange. In the F&O segment turnover was Rs15.4bn with an open interest position of 48,15,450 shares.

After hitting a high of Rs435 TV 18 slipped over 4% to close at Rs386 on back of profit booking. The scrip touched an intra-day high of Rs435 and a low of Rs323 and recorded volumes of over 6,00,000 shares on NSE.

Bank of India completely recovered from its days low and has gained by over 1.5% to Rs359 after the Bank announced that it cut home loan rates by 25bps to 9.75%. The scrip touched an intra-day high of Rs369 and a low of Rs339 and recorded volumes of over 13,00,000 shares on NSE.

Bharti Airtel lost over 4% to Rs884. The scrip touched an intra-day high of Rs944 and a low of Rs825 and recorded volumes of over 34,00,000 shares on NSE.

News Snippets:

The Bombay High Court will hear RIL-RNRL dispute on gas from Feb 25. (FE)
SBI and Canara Bank have cut their benchmark prime lending rate by 25bps. (BS)
Gayatri Projects is planning to offload up to 49% stake in its newly formed holding company Gayatri Infra Ventures Ltd. (FE)
Reliance Technology Ventures, a 100% subsidiary of Reliance Capital has acquired a 10% stake in French Wi-Max chipmaker Sequans Communications. (BS)
Nicholas Piramal is planning to become a leader in diagnostic products in the domestic market over the next two years. (BS)
Deccan is likely to scale down its metro operations. It has launched daily flights connecting Mumbai to Indore, Vishakhapatnam and Lucknow. (BS)
Vivimed Labs is acquiring James Robinson, a subsidiary of UK-based global chemicals major Yule Catto & Co.
Kingfisher Airlines will operate international flights between Bangalore and San Francisco, Bangalore-New York and Mumbai-London flights from August. (BS)
GHCL Global Sourcing, a 100% subsidiary of GHCL, has set a business target of over US$1bn in FY09. (BS)
SBI has received government approval to allot shares to its staff at Rs 1,590 a share, or the price of the bank’s rights issue offer. (BS)
Allahabad Bank plans to raise Rs3bn of perpetual bonds before end-March. (BL)
Everonn Systems has acquired Patna-based Toppers Tutorial that operates in the IIT-JEE and AIEEE entrance exam space. (BL)
Kansai Nerolac Paints has lined up a total of 45 ‘Impression Style Zones’ in Chennai, Bangalore and Hyderabad in six months. (BL)
NTPC has initiated a move to place letters of award for five projects with a total capacity of 5,300 mw. (FE)
Escorts Construction Equipment will enter the earth moving equipment business in FY09. (BL)
IOC plans to invest Rs90bn on improving the quality of petrol and diesel. (BL)
Bank of India may acquire a mid sized foreign bank in the next 2-3 months. (ET)
ICICI Bank plans to sell its small ticket personal loans portfolio worth Rs20bn. (ET)
DLF expects to list its US $1.5bn property trust IPO in Singapore in the second quarter of this year. (ET)
Reliance Industries and ONGC may not get special R&D status for their 17 blocks in the K.K. basin. (ET)
The delay in forest clearance for Reliance Power’s Sasan project has impacted a related transmission project to be built by Power Grid Corp. (Mint)
Indian Overseas Bank may cut select lending rates by up to 25bps, but will wait till March to reduce deposit rates. (ET)
Arcelor Mittal India has got provisional approval from the Orissa Government to acquire 7,750 acres of land for its steel plant. (ET)

Economic Front Page

GSM based mobile industry added 6.19mn users in January, taking their total mobile subscriber base to 178.4mn. (ET)
The Indian biotech industry is set to grow and occupy 140 million square feet by 2010. (BS)
The vanaspati industry has sought customs duty at Rs4,000 per ton for import of crude palm oil. (ET)
The DoT has mooted a proposal for increasing additional spectrum charges and has also suggested slashing of one-time fixed spectrum charges. (BS)
China is ready to join Pakistan and Iran to build a pipeline and purchase Iranian gas if India does not participate in the project. (BS)
The Tamil Nadu Government plans to incentivise industries to utilize captive power production units. (BL)
The current defence market for private sector firms in India is estimated to grow by 7% annually from the current US$700mn by 2010. (FE)
Power ministry has sought the Prime Minister’s intervention to get natural gas from PMT fields for NTPC’s power plants. (FE)
The aggregate revenue of the IT-BPO sector is expected to grow 33% to US$64bn in FY08, according to Nasscom. (FE)
The Government is considering a proposal to have a representation of the steel ministry with the ministry of mines while allocating iron ore mines. (ET)
The finance ministry has said that exemption from STT should not be provided in the case of International Financial Service Centres. (ET)

Daily Technicals, Futures, Outlook - Feb 12 2008

Daily Technicals, Futures, Outlook - Feb 12 2008

J Kumar Infraprojects Listing

J Kumar Infraprojects will List Today

For what it's worth - lok @ Grey Market

Higher energy price pushes bullion prices higher

Gold and silver prices rise for the fourth consecutive day

Bullion metals rose for the fourth consecutive day today, Monday, 11 February, 2008. Prices rose as crude oil rallied boosting the appeal of the precious metal as a hedge against inflation. Also, news of potential supply shortages in South Africa continued to hit the market. Silver prices also ended considerably higher for the day.

Gold generally moves in the opposite direction of the U.S. currency. Gold, as a dollar-denominated commodity, suffers from dollar strength.

Comex Gold for April delivery rose $4.4 (0.5%) to close at $926.7 an ounce on the New York Mercantile Exchange. On 30 January, 2008 prices had hit a high of $941 in the after hours trading. This year, prices have gained 11.3% till date. In January, prices gained 11%, the highest monthly gain since April 2006. Last week, gold prices closed higher by $8.8 (0.96%) against previous close of $913.5.

Comex Silver futures for March today rose by 36 cents (2.1%) to $17.47 an ounce. Silver has gained 16.1% in 2008. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years. In January this year itself, prices climbed 14%.

As per reports, severe power shortages in South Africa, the world's second-largest gold producer continued to post serious threats to mine production.

But gold's gains were limited today after the Group of Seven officials meeting in Tokyo said they supported the International Monetary Fund's effort sell its gold reserves in order to invest in higher-yielding assets.

In the energy market today, crude oil rose to a one-month high after Valero Energy shut its Delaware refinery because of a storm-related power failure yesterday and cold weather moved across the northern U.S. Crude prices rose $1.82 (2%) to settle at $93.59 a barrel. Last Friday, crude prices surged more than 4% as OPEC minister hinted at a production cut to restore back crude prices at higher level.

In the currency markets today, the dollar traded mainly lower against most major counterparts, slipping against the euro. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, edged down 0.1% to 76.560.

Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Rising crude increases inflationary pressures and vice versa. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

On 31 January, 2008, the Federal Reserve lowered interest rates 0.5% point to 3% today. This was on top of the 75 bps rate cut to 3.5% that Fed did earlier this year. The interest rate cuts are to avoid the US economy from plunging into recession.

Gold witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

Gold had climbed 31% ($200/ounce) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. The Fed reduced federal funds rate three times in FY 2007.

At the MCX, gold prices for April delivery closed higher by Rs 38 (0.3%) at Rs 11,765 per 10 grams. Prices rose to a high of Rs 11,809 per 10 grams and fell to a low of Rs 11,690 per 10 grams during the day’s trading.

At the MCX, silver prices for March delivery closed Rs 333 (1.5%) higher at Rs 22,232/Kg. Prices opened at Rs 21,905/kg and rose to a high of Rs 22,358/Kg during the day’s trading.

Refinery shutdown sends crude higher

Threat by Venezuelan president to shut supplies add further tension

Crude prices rose substantially today, Monday, 11 February, 2008. This was crude’s third consecutive rise. Prices rose due to a couple of factors. Threat by Venezuelan President to cut off oil supplies to US and shutdown of a refinery by Valero Energy were the major reasons for this rise.

Crude-oil futures for light sweet crude for March delivery today closed at $93.59/barrel (higher by $1.82/barrel or 2%) on the New York Mercantile Exchange. They rose to an intraday high of $94.72 earlier. The contract also fell to an intraday low of $90.92 in earlier trading on economic worries.

Crude prices rose today after Valero Energy shut its Delaware refinery because of a storm-related power failure yesterday and cold weather moved across the northern U.S.

On the other side, Venezuelan President Hugo Chavez today threatened to cut off oil supplies to the U.S. in retaliation of Exxon Mobil’s legal action to freeze Venezuela's assets. Venezuela is South America's second largest oil producer and one of the world's top exporters to the U.S.

Brent crude oil for March settlement today rose $1.59 (1.7%) to $93.53 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.

Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.

Natural gas gains for sixth straight day; Prices increase more than 10% in February

Natural gas advanced to the highest in three months on forecasts that colder weather will linger into next week and speculation the U.S. economy may soon rebound, lifting demand. Natural gas for March delivery rose 23 cents (2.8%) to settle at $8.531 per million British thermal units.

Today’s rise was the sixth consecutive rise for natural gas. Prices have increased more than 10% in February 2008 itself.

Against this backdrop, March reformulated gasoline added 3.9 cent to $2.3962 a gallon, and March heating oil rose 5.03 cents to $2.6044 a gallon.

Last Friday, two ministers of Organization of Petroleum Exporting Countries (OPEC) hinted that the cartel might go for a production cut in its next meeting at March, 2008. This spurted up crude prices and the same ended almost 4% higher on that day. At its 1 February meeting at Vienna, OPEC members decided to keep current output levels unchanged.

At the MCX, crude oil for February delivery closed at Rs 3,715/barrel, higher by Rs 107 (2.9%) against previous day’s close. Natural gas for February delivery closed at Rs 340.5/mmtbu, higher by Rs 15.2/mmtbu (4.7%).

First day, no show !

It was an exception in many ways. It was to be a blockbuster issue, but the magnitude of fall took even optimists by surprise. The Reliance Power issue ended day one at Rs 372.5, 38% down from the day’s high. To put things in perspective, the average difference between the highest and closing prices of the 10 biggest IPOs of 2007 was barely 13.4%.

It is the first IPO from the Ambani stable, to close the first day of trading in red. Reliance Petroleum, which listed on May 11, 2006, opened at a premium of 70% and closed at 42% over its offer price on its debut.

ADAG stable has spawned a number of issues — R-Com, Reliance Capital, Reliance Energy and RNRL. However, the issues were not IPOs in the true sense. Most of these companies, were the result of the demerger of Reliance Industries. Most of these issues opened at a premium to the fair value.

The Reliance Natural Resources (RNRL) listing in 2006, did not see a consensus on the fair value of the share. It was anticipated to be anywhere between Rs 5 and Rs 20, but opened at Rs 17.5. Sources also say that the erstwhile Reliance Industries, which got listed in the late 1970s, offered a share at Rs 10 a piece and opened at Rs 16.
Comparing Reliance Power with its Ambani predecessors may not be apt as it was in the distant past. For a more holistic view, one needs to consider the IPOs of 2007.

Of the 10 biggest IPOs of 2007, as many as seven opened in green or where opening price was higher than issue price. Mundra Port opened at Rs 770 per share, while the issue price was Rs 440, which translates to a gain of 75%. Similarly, Power Grid, whose issue price was Rs 62, opened at Rs 85, witnessing a gain of 63.5%.

Intra-day high, vis-a-vis, the issue price, saw Mundra Port and Power Grid register a whopping 161.4% and 110.4% gain. Seven of the major IPOs in 2007 closed in the green on the first day.