31 March 2010

Sensex ends FY10 with 80% gains; FIIs pump in $20 bn

Sensex ends FY10 with 80% gains; FIIs pump in $20 bn


It was an outstanding fiscal year - 2009-10 - for the Indian equity markets; the Sensex rallied 80% and Nifty surged 74%. FIIs came back in droves, pumping in close to USD 23 billion in India's cash market. India, in fact, was the second best performing equity market globally, next only to Russia in this fiscal.

Two big events that aided this rise - firstly a recovery in global markets on the back of numerous stimulus packages and secondly, a thumping victory for the Congress party in the Lok Sabha elections in May 2009.

Sector report

On the sectoral front, the BSE Metal Index was the star performer on the back of rally in prices of international commodities. Respective index shot up 210%. Jindal Steel & Power surged 256% and Hindalco was up 254%. Tata Steel gained 212% and SAIL rose 150%.

The Auto Index rallied 150%, as Tata Motors surged 310%. M&M was up 190%. Hero Honda and Maruti were up 85% each.

The BSE Bankex soared 140%, as Axis Bank, ICICI Bank and PNB surged 144-190%.

In the technology space, HCL Tech went up 263%, TCS up 200%, Wipro up 192% and Infosys up 105%. The IT Index was up 130%.

The BSE Oil & Gas and FMCG indices were the least performers in the year 2009-10. Respective indices were up 45% and 41%.

Stock performances

Among largecaps, IDFC was up 200%, Ranbaxy up 190%, Jaiprakash Associates up 168% and L&T up 147%.

Idea Cellular gained 34%. BPCL and ONGC were up 40%. RIL went up 44%. HUL rose just 1% and NTPC went up 13%.

However, Reliance Communications declined 4% and Bharti Airtel was down 1%.

Among the broader indices, the CNX Midcap Index was up 128% and BSE Small Cap Index up 162%.

In the midcap space, Jindal Saw shot up 510%. IndusInd Bank, JSW Steel, Orbit Corporation, Greaves Cotton and Yes Bank were up 410-458%. Gujarat NRE Coke gained 355%.

In the smallcap space, Fame India surged 740%. Unity Infra, Supreme Infra and Zydus Wellness rallied 555-675%.

Currencies and commodities

The US Dollar Index was down 5% while the Reuters CRB Commodity Index was up 21%.



Stock market gives investors 80% return in FY'10; best in 5 yrs

NEW DELHI: Investors have reaped a five- year best return of over 80 per cent from the stock markets in fiscal 2009-10, when judged by the

performance of the BSE benchmark index Sensex.

Analysts, however, said that the momentum could be slowed in the coming fiscal as investors are expecting a lot from the market now, which may not come in until there is a correction.

The bulls were back with a bang in fiscal FY'10, offsetting the losses incurred by investors in the previous financial year.

The returns from investments in this fiscal have soared to 80.5 per cent. The Bombay Stock Exchange benchmark Sensex settled at 17,527.77 points on March 31, 2010, from 9,708.5 points at the end of March 31, 2009. The Sensex had jumped to its two-year high level of 17,793 points on March 29 driven by strengthening of the rupee against the US dollar.

During FY'09, the 30-share index had plunged to 9,708.50 points from 15,644.44 points, losing nearly 38 per cent.

"The market has gained quite a lot and will continue to remain volatile in the coming days. Monsoon will be a deciding factor for the overall growth of the economy and that would in turn affect the capital market," Taurus Mutual Fund Managing Director RK Gupta said.

During fiscal 2007-08, the market provided a return of 20 per cent, while the same for 2006-07 and 2005-06 was 16 per cent and 74 per cent, respectively.

The fiscal has been a good one for the broader market with a host of new companies coming out with public offerings and three state run companies -- NTPC, REC and NMDC -- coming out with follow-on-offers.

Among the biggest gainers in the Sensex companies Tata Motors surged over 300 per cent, followed by Hindalco 240 per cent, Tata Steel 210 per cent, TCS 200 per cent and Wipro 190 per cent in financial year ending March 31, 2010.

Other major gainers include ICICI Bank 180 per cent, M&M 175 per cent and the index heavy-weight Reliance Industries 44 per cent.

"Returns have been widespread for the market but the coming financial year will not be too rosy. We are cautiously bullish on the market as a lot of expectations have been built up," SMC Global Vice-President Rajesh Jain said.

Analysts said at this juncture a correction is imminent in the market and the Sensex could trail the 20,000 level by the end of next fiscal (2010-11).

"FIIs may withdraw money if the rupee strengthens at this pace. It will pour in money again after the rupee comes back to the 47-a-dollar mark," Gupta said. The Indian rupee is currently hovering around the 44.97-a-dollar mark, at nearly 19-month high level.

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Emerging market currencies show cracks



Src: Moneycontrol, ET





Reliance to tighten grip on world fuel markets

Reliance to tighten grip on world fuel markets


NEW DELHI/SINGAPORE: India's top privately run refiner Reliance is expected to raise crude oil imports by about 22 percent this year as it ramps up production at its giant complex, further stamping its mark on world markets.

To maximise profit margins with its sophisticated refining capability, Reliance Industries is also set to limit African crude imports this year in favour of Middle East grades, if light crude prices continue to strengthen against heavy-sour grades, traders and analysts said.

"I expect Reliance refineries to run at full steam, even if in between there is a small shutdown, they can easily run at about 65 million tonnes," said a trader familiar with refining operations. Reliance declined comment on traders' estimates.

This means that the company's two refineries -- the largest facility in the world -- will run above their full combined capacity of 1.24 million barrels per day (bpd), higher than last year when its second plant began operating at full rate in the second half.

After the world first saw increasing flows from Reliance in the summer of 2008, with the start of its new 580,000 barrel-per-day (bpd) plant, this year will see the full blast of exports of high-value diesel and gasoline made from a diverse slate of the cheapest available crudes.

This will put pressure on weak Western refineries and arbitrage traders at a time oil demand is just starting to pick up, but is still in defensive mode, analysts said.


Also Read
Buy Reliance at 1050 with a stp loss of 1020: Sandeep Wagle
Reliance Industries stock should be acquired: Centrum Wealth Managers Ltd
Reliance getting close to 1150-1200 levels: Deepak Mohoni


"It's a powerful refinery, and if they get the right logistics, they can probably penetrate Western markets, gain market share and push some out of the market entirely," said John Vautrain, senior vice president of Purvin & Gertz Inc.

DIVERSITY OF CRUDE

The refiner's 2009 crude shipments from Africa including Egypt and Sudan rose more than fivefold to over 200,000 bpd, making the continent its No. 2 supplier, overtaking Latin America. This is in line with a 74 percent jump in total imports.

It bought crudes as varied as Cameroon's Lokele, Chad's Doba, Venezuela's Corocoro, and China's Penglai, while resuming Iraqi crude imports that it shunned in 2006.

Reliance for the first time imported Gimboa crude from Angola, which positioned itself as the fourth-biggest supplier, surpassing Venezuela. It also took crude from Gabon, Ivory Coast, Congo, Colombia, Ecuador, Syria and Yemen into its roaster.

Though Middle East crude remains Reliance's main staple, OPEC supply cuts in end-2008 -- around the time the refiner started its new plant -- prompted it to turn to African crude to make up for the gap when Gulf grades became costlier last year.

This was made possible after the Brent-Dubai price spread, an approximation of the premium at which Atlantic basin light-sweet crude trades to Gulf heavy-sour grades, reversed into steep discounts three times last year, making some West African crudes cheaper, traders said.

The structure has returned to normal this year. The front-month Brent/Dubai Exchange of Futures for Swaps (EFS) for May rose to $2.50 a barrel on March 18, the highest since OPEC producers began record supply curbs.

More @ http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/Reliance-to-tighten-grip-on-world-fuel-markets/articleshow/5746150.cms


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Indian shares could rise further in Q1 of FY-11: Poll

Check out cos that gave high dividend in last 6 years

India poised to overtake China

Morning calls

Top 5 picks I Mid term picks

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Heard on the street


Buying by domestic funds boosts Tilaknagar
Shares of Tilaknagar Industries, a mid-sized liquor brewer, has rallied smartly amid major fund-based buying, even as its promoters have been reducing their stake in the company over the past few weeks. Market sources attributed the current frenzy in the counter largely to purchases by domestic mutual funds looking to boost their net asset values by the end of this financial year. The promoters — Dahanukars — have sold a sizeable 12% stake through many deals transacted in BSE’s bulk deal segment between March 8 and 29. They sold a total of 37.1 lakh shares in different lots at different prices for Rs 44 crore during the period. Of these, 15 lakh shares were picked up by Citigroup Global Markets and another 7.5 lakh by ABN Amro Bank, according to disclosures filed with the exchange. The Dhahanukars owned 74% in Tilaknagar Industries as on December 31, ’09. The stock has risen 20% over the past one month, before closing flat at Rs 123 on Tuesday.

BGR Energy on institutions’ radar
Institutional investors have been buying shares of power equipment manufacturer BGR Energy Systems on the hope that the company will do well on the back of increased government spending in the power sector, unique business positioning and strong order book. According to institutional dealers, ‘Reliable Mutual Fund’ and ‘Cutie Eye MF’ have been accumulating shares of BGR Energy Systems in large numbers over the past few weeks. The operator group — led by the Rar(e)ing bull — has also been buying shares of BGR Energy at every opportunity. On BSE, the shares ended 1.2% higher at Rs 515 on Tuesday.

Gail falls as a foreign investor cuts exposure
Shares of Gail India drifted lower in heavy trade on Tuesday, closing at Rs 401.55. Dealers tracking the counter say a foreign institutional investor (FII) has been cutting exposure to the stock in the past couple of trading sessions. This fund is said to have offloaded 10 lakh shares on Monday and another 7 lakh shares on Tuesday. Offers for sizeable blocks of the stock were doing the rounds on Tuesday too. Speculation is that the fund is looking to sell 30 lakh shares in all, of which 17 lakh have already been placed. Till buyers emerge for the last tranche, the stock could remain subdued, say dealers.

(Contributed by Vijay Gurav & Shailesh Menon)

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Daily News Roundup - March 31 2010


No Big Bang here!


Shoppers Stop


Container Corporation


DLF


GSPL


Pratibha Industries



Src: ET and DP blog

29 March 2010

Morning Calls

Inching up towards new highs


There were very nominal changes to index values in a settlement week where the Nifty swung between a high of 5,294 points and a low of 5,193 before finally settling at 5,282 for a small gain of 0.4 per cent. The Sensex was also up 0.4 per cent at 17,644 points. The Defty gained a more substantial 0.7 per cent due to the rupee strengthening against dollar.

Breadth was fair through the week with advances outnumbering declines. Volumes were on the low side for a settlement week. The BSE 500 was ahead by 0.3 per cent while the Midcaps gained 0.4 per cent and the Junior was up 0.8 per cent. FIIs were net buyers while the domestic institutions continued to be net sellers--- this has been the pattern through the entire March settlement

Outlook: The market is likely to touch a new 52-week high sometime next week, beating the 5,310 mark it registered in early January 2010. But momentum is weak and so are volume indicators. Unless there's a pickup in trading interest, prices beyond the 5,300 mark will not be sustainable. Most likely, prices will remain in the range of 5,200-5,300.

Rationale: The intermediate trend has now been up for around 7 weeks and it could stay up for several more weeks. If the pattern of higher highs is maintained, the 52-week high of 5,310 would be exceeded and that would confirm a strong long-term trend as well.

However, there are signs of weakness in the low volumes and low momentum indicators. Another technical signal of weakness is that the simple 200-Day Moving Average (DMA) is outperforming the exponential 200 DMA. A correction should find support at around 5,200. A possible reversal in the intermediate trend would be signalled by a fall below 5,193, setting up a pattern of lower lows.

Counter-view: Most likely, unless volumes climb, the market is likely to trade in the range of roughly 5,200-5,350 next week and end in the lower half of that zone. One underlying cause for a non-trending market is that the DII-FII attitudes have been consistently opposed. If institutional attitude is aligned, the market will move in the direction of net institutional positions. Until volumes do climb, we won't see a major breakout.

Bulls & Bears: The lack of a strong trend in the overall market has been reflected in sector movements. In many cases, one day of net sector gains has been followed by sell-offs in the next session. Banks were among the best performers last week with the BankNifty bouncing almost 2 per cent.

The IT Index underperformed, with only nominal gains. Smaller IT stocks did better than the larger ones but the rising rupee could put pressure on the whole sector. Pharma stocks registered steady gains with Ranbaxy, Cipla, Dr Reddys, Glenmark Piramal all finding backers.

Energy was in the limelight on Friday as were auto- and auto-ancillary scrips. Both sectors look poised to register potential gains on Monday as well. The trends in metals and real estate appear quite mixed. Engineering and construction also showed signs of selective investment.

MICRO TECHNICALS

BAJAJ AUTO
Current Price: Rs 1,977.9 0 Target Price: Rs 2,050

The stock has just made an upside breakout on expanding volumes. It has the potential to move till around the Rs 2,050 and it should reach Rs 2,020 in the short-term. Keep a stop at Rs 1965 and go long. Be prepared for excessive volatility.


GLENMARK PHARMA
Current Price: Rs 252.60 Target Price: Rs 265

The stock is picking up volumes along with a strong uptrend in price. It has the potential to rise till around Rs 280- Rs 285 but it will run into resistance at around Rs 265 so, that should be the initial target. Keep a stop at Rs 249 and go long. Book 75 per cent profits at Rs 265 and reset the stop to Rs 260.


ONGC
Current Price: Rs 1,079. 90 Target Price: Rs 1,120

The stock has started to move up on some volume expansion. It has the potential to test Rs 1,120 on an intra-day basis and it may move further, till around the Rs 1,140 mark. Keep a stop at Rs 1,065 and go long. Above Rs 1,115, book 50 per cent profit and reset the stop loss to Rs 1,105.


HIND UNILEVER
Current Price: Rs 238.50 Target Price: Rs 250

The stock has just started recovering from a period of sustained selling that pushed prices to a recent low of Rs 218. It has the potential to bounce till the Rs 250 level. Keep a stop at Rs 232 and go long. Book 50 per cent profits above Rs 245 and reset the stop loss to Rs 250.


ICICI BANK
Current Price: Rs 947.50 Target Price: Rs 920

The stock is range-trading through a zone of Rs 915-960 and it's more likely to head down in the next week. Keep a stop at Rs 955 and go short. Increase the position below Rs 940. Start booking profits at around Rs 920. Below Rs 920, consider reversing the position and going long.


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Fund managers in buy mode 29-MAR-10
In an otherwise quiet week for the markets, Smart Portfolios fund managers were busy building their portfolios ahead of the quarterly and full year earnings next month.

Markets at a glance 29-MAR-10
Despite RBI hiking interest rates during the week, the markets delivered the seventh week of gains in a row.

Indian stimulus exit won't 'kill' rally 29-MAR-10
India’s stocks will withstand the withdrawal of stimulus measures and extend last year’s rally, the biggest in 18 years, as domestic spending strengthens, said Prudential Financial Inc.

Volatility could increase through the week 29-MAR-10
Despite low volumes the settlement went through with net gains.

Inching up towards new highs 29-MAR-10
There were very nominal changes to index values in a settlement week where the Nifty swung between a high of 5,294 points and a low of 5,193 before finally settling at 5,282 for a small gain of 0.4 per cent.

Time triads creating H&S fractals 29-MAR-10
We have talked about head and shoulder on prior occasions.

Analysts' corner 29-MAR-10
Our global commodities team has increased its forecasts for 2010-12 annual contract settlements by 2-8 per cent.

Trend reversal 29-MAR-10
Contrary to popular belief of a 50 basis points hike in key rates during April 2010 monetary policy review, the RBI stepped in decisively in the interim.

Aiming high 29-MAR-10
Ahluwalia Contracts, a mid size construction company, is well placed to benefit from the planned investments in the infrastructure sector, especially in urban infrastructure.

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Top five pics | Mid-term pics


Analysts' picks: Oil India, BHEL, Tata Power, Shriram Transport Finance


Indraprastha Gas a good bet for long-term investors
29 Mar 2010, 0622 hrs IST, Ramkrishna Kashelkar

As the mature natural gas industry enters its next round of high-investment-high-growth phase, long-term investors can gain from betting on Indraprastha Gas.

Financial management: How a woman can plan her future
29 Mar 2010, 0615 hrs IST, Supriya Verma Mishra

To help women make the most of each penny, ET Intelligence Group explores some schemes/options that can help them plan their future well.

Blue Dart Express offers attractive investment opportunities
29 Mar 2010, 0606 hrs IST, Amriteshwar Mathur

Blue Dart Express enjoys a strong presence in courier & integrated express package distribution space and offers attractive investment opportunities.

Lupin: Future prospects are bright
29 Mar 2010, 0602 hrs IST, Kiran Kabtta Somvanshi

An all-round growth delivered by Lupin bodes well for its future prospects.

Pharma sector: There is room for value buying
29 Mar 2010, 0557 hrs IST, Kiran Kabtta Somvanshi

While valuations of the pharmaceutical sector appear to be strained, there is still room for value buying from small and large-cap universe.

BHEL a good bet for medium to long-term investors
29 Mar 2010, 0550 hrs IST, Ahish Agarwal

BHEL is currently trading at around 30 times its trailing 12-month earnings, which makes it an attractive option. Investors can consider exposure in the stock with a medium to long-term outlook.


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Oil India


Amtek Auto


Engineers India


Weekly Watch - March 28 2010


Trading strategies on 8 stocks that buzzed last week


Weekly Market Wrap

Technical Picks – Stocks



Src:Business-Standard, ET, HDFC Securities, Moneycontrol and DP blog and etc

28 March 2010

Know A Web, Personality

A site for the Details of UPSC exam etc


http://www.threeauthors.com/




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Personality

Sanjay Jha


Sanjay K. Jha [1], born 1963, joined Motorola in 2008 and serves as co-chief executive officer of Motorola, Inc. and chief executive officer of Motorola’s Mobile Devices business. He is also a member of Motorola’s Board of Directors. [2]


Early life

Sanjay Jha was born in Madhubani Bihar, the eastern state of India[3] He holds a Ph.D. in electronic and electrical engineering from the University of Strathclyde, Scotland. He received his bachelor of science degree in engineering from the University of Liverpool, England


More @ Sanjay Jha



Src: Wikipedia and etc








News Round-Up

TECHNICAL ANALYSIS: Index Outlook: Approaching a barrier
Indian equities tumbled last Monday. But they were not alone. Other global equity and commodity markets declined on that day too. And the reason…. hike in policy rates by Indian Central Bank. Just goes to show the growing clout of India ...

STOCKS: Andhra Bank: Buy
STOCKS: Welspun Gujarat Stahl: Buy
Investors can consider buying shares in steel pipe maker, Welspun Gujarat Stahl. The price of Rs 277 gives the company a price earnings of 11.3 times the trailing four ...

STOCKS: Petronet LNG: Hold
Petronet is a key player in the fast growing natural gas market of India and has had a decent run over the past ...

STOCKS: Lumax Industries: Buy
Lumax Industries, maker of automotive lighting systems, is a beneficiary of the 30 per cent growth in automobile production so far this fiscal. Investors with a two-year perspective can consider buying this stock at Rs 173. The price ...

STOCKS: KSK Energy: Hold
Shareholders with a high risk appetite and long-term horizon can continue to stay invested in the KSK Energy stock. KSK Energy now develops and operates small (captive) power projects but is set to enter the big league with more than 10,000 MW ...


TECHNICAL ANALYSIS: Pivotals: Reliance Industries (Rs 1,099)
RIL moved to the intra week low of Rs 1,068 on Monday before inching higher in the next three sessions to close 1 per cent higher. The stock is moving sideways since June 2009 and an ascending triangle pattern is being formed on the weekly ...

TECHNICAL ANALYSIS: Sizzling stocks: Valecha Engineering (Rs 147.8)
Valecha Engineering raced 18 per cent higher on Thursday and topped it with another 20 per cent gain on Friday. This upsurge has helped the stock break out of the sideways range between Rs 90 and Rs 125 within which it was moving since ...

TECHNICAL ANALYSIS: Query Corner: Descending triangle in Reliance Industrial Infra
I am holding shares of Andrew Yule and Company bought at Rs 61. Please advise whether I can hold this stock for one ...


More @ http://www.thehindubusinessline.com/iw/index.htm

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Eurozone throws its weight behind Greece...finally


Piramal Healthcare acquires "i-pill" from Cipla


Maruti to spend Rs17bn on Manesar expansion


Videocon joins mobile bandwagon with launch in TN


IOC, OIL confirm making cash offer for Gulfsands


India needs US$1 trn for infra spending: PM

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Wkly Tech Analysis: Nifty likely to hit 5,350">Wkly Tech Analysis: Nifty likely to hit 5,350

Smart gains in the last two trading days of the week helped the markets maintain its winning streak for the seventh straight week. The markets started the week on a cautious note as a mid-week holiday and the derivatives expiry weighed on the sentiment. However, some short-covering on Thursday coupled with fresh buying on Friday ensured weekly gains.

The Sensex touched a low of 17,337 early in the week. However, it rallied to a high of 17,683, and finally settled with a gain of 67 points at 17,645. The index is now just 150 points away from its recent January high, above which it will soon be at a fresh 25-month high.

In the week under review, HDFC Bank was the major gainer among the Sensex stocks. The stock gained 7 per cent at Rs 1,948. Sun Pharma, Hindustan Unilever, ONGC and Hero Honda rallied 2-4 per cent. On the other hand, DLF shed 5.5 per cent at Rs 295. Tata Motors, ACC, HDFC, Maruti and Jaiprakash Associates declined 2-4 per cent.

Next week, the markets are likely to start on a positive note given the momentum. However, once at fresh highs, some amount of profit-taking is expected, as the rally too has now been seven weeks old.

The Sensex may face resistance around 17,850-17,950, while it is likely to find considerable support around 17,500-17,430.

The NSE Nifty moved in a range of 107 points, from a low of 5,187, the index rallied to a high of 5,294. The index finally settled with a gain of 11 points at 5,274. The index has surged 516 points in the last seven weeks.

Next week, the index may face resistance around 5,340-5,350, while it may seek support around 5,230-5,205.

The short- and the medium-term trends are fairly bullish. The intermediate trend may turn negative only on a fall below 5,055. The momentum indicators too are positive, barring the Stochastic slow, which is a slight worry for it has made a lower high in the second leg.


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'Stock markets to trade in limited range'

CIL selloff may fetch Rs 10K crore for government

Mid-cap stocks to gain momentum in FY 2010

Bank failures in US rises to 41


Src: Economictimes, Business-standard, DP blog etc


25 March 2010

Bulls Eye

Bull's Eye: Stocks to buy today


Everyday, on this special segment, Bull's Eye, CNBC-TV18 brings you trading/investing calls from investment analysts. Today, we bring you calls from:

-Technical Analyst, Ashwani Gujral
-VK Sharma of HDFC Securities
-Shahina Mukadam, Varun Capital Markets

VK Sharma of HDFC Securities


Buy Amtek Auto; target 194
Buy Aqua Logistics; target 262
Buy Astra Micro; target 74.50
Buy GEI Industrial; target 119

Shahina Mukadam, Varun Capital Markets

Buy Areva T&D with target price of Rs 325
Buy Marico with target price of Rs 115
Buy Sunil Hitech with target of Rs 240
Sell HPCL with target price of Rs 301

Technical Analyst, Ashwani Gujral

Buy NELCO with target of Rs 144.5
Buy Ruchi Soya with target of Rs 99.5
Sell Shree Renuka Sugar with target of Rs 67
Sell Bajaj Hindustan with target of Rs 134


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Top 5 picks | Mid-term picks

Buy Bharti stock for long term: Analysts

SAIL divestment to get okay on Thursday

Alembic



Src: ET and Moneycontrol and DP blog etc

24 March 2010

Zain board approves asset sale to Bharti

Zain board approves asset sale to Bharti

MUMBAI/KUWAIT: The board of Kuwaiti telecoms operator Zain has approved a $9 billion sale of most of its African assets to India's biggest
telecoms firm Bharti Airtel, sources said on Wednesday.

Due diligence on the deal, which will extend Bharti Airtel's reach into African emerging markets dramatically, is completed and the sale documents will be signed with in several days, the sources said.

Spokesmen for Zain and Bharti declined to comment.

Bharti said on Sunday it had tied up the entire financing requirement of $8.3 billion, with major international banks committing to underwrite the amount, in a sign of progress as the deadline for exclusive talks with Zain expires on Thursday.


Bharti, which failed twice to acquire Africa's biggest mobile operator MTN Group, is desperate to expand in new markets, as cut-rate competition in its home market -- the world's fastest growing -- squeezes margins and clouds its growth outlook.

Zain's African businesses had been considered a natural target for Bharti, which has thrived in an Indian market with low incomes and tariffs and a heavily rural population -- characteristics shared by African nations.

Zain was keen to lock in what many regard as a high price offered by Bharti. The Kuwaiti group pulled back from an expansion spree last year and rejected an offer from France's Vivendi for its African assets. Bharti, 32-per cent owned by Singapore Telecommunications, has said it would pay a total $9 billion in cash to Zain, including $700 million to be paid one year after the deal closing. Bharti will also assume $1.7 billion debt on the target firm's books.

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Cos in billion-dollar sales club

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Heard on the Street

Bharti Airtel execs may exercise stock

options


Many Bharti Airtel employees, who have got shares through the stock option programme, may choose to book profits, say brokers tracking the company. The stock options have been exercised at a sharp discount to the current market price which could be advantageous to the employees provided there is no lock-in period. Market players say the company can at its discretion, impose a lock-in period on the shares acquired though the exercise of stock options. Bharti Airtel has allotted 2.7 lakh shares in different lots at different exercise prices ranging from Rs 110.5 to Rs 206, in the last two weeks. The stock closed at Rs 307 on Tuesday, down 3% over the previous close.

Areva T&D jumps 10% on open offer talk

Areva T&D shares surged 10% on Tuesday on renewed buzz of a likely open offer by the Alstom-Schneider Electric combine. The stock closed at a near four-month high of Rs 306.85, with around 45 lakh shares changing hands on both exchanges combined. Alstom and Schneider Electric had jointly bought out Areva T&D’s French parent in November last year. After a brief spurt in early December, the stock has been moving in a narrow range, as traders accumulated the stock in expectation of an open offer.

NMDC counter buzzing with block deals

The NMDC stock fell over 6% in heavy trade on Tuesday to close at Rs 324.75, ahead of the allotment of the follow-on public offering shares. Market grapevine is that the shares will be alloted on Thursday. Many high net worth investors who have subscribed to the issue are said to have short-sold the stock, confident that they will be able to meet their delivery obligation on Friday, which is the pay-in session for Tuesday’s trades.

Punters say there has been brisk activity in the grey market for NMDC shares in the past couple of sessions, with most of the trades done at Rs 310 per share. Sellers in the grey market are expecting the stock to fall below Rs 310 once the follow-on shares are alloted. They hope to make a tidy profit by buying the shares from the regular market and meeting their grey market obligations. Around 33 lakh NMDC shares were traded on both exchanges combined.

Insurance major dumping Infosys stocks

The January-March quarter earnings of Infosys Technologies are still around three weeks away, but a leading insurance company is already a seller in the stock. Though there is no evidence to link the insurance major’s recent selling of Infosys stocks to the outcome of the results, many funds, in the past, have offloaded stakes quietly ahead of its earnings. But, the selling has had little effect on the stock, suggesting that there are enough takers for the stock. The stock closed at Rs 2,775.35, up 0.7% on Friday.

Contributed by Vijay Gurav, Santosh Nair & Nishanth Vasudevan

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India Valuations


India Property


TTK Prestige Ltd


Deccan Chronicle


Jaiprakash Associates


Lanco Infratech


Balakrishna Industries


Piramal Healthcare


Hindalco


Infotech Enterprises



Src:Economictimes, DP blog and etc

23 March 2010

Cairn discovers more oil in Rajasthan block

Cairn discovers more oil in Rajasthan block



NEW DELHI: Highly placed sources in the Petroleum Ministry have said that Cairn India has discovered new oil reserves in Rajasthan oilfields.
The company is likely to make an announcement shortly. New oil reserve will increase India's domestic oil production by about 23% in financial year 2011. This essentially means that these reserves are very big.


Rahul Dhir, the Chief Executive of Cairn India has met the Petroleum Minister Murli Deora who in turn has congratulated him and the company for the discovery. Cairn India extracts oil from the Barmer region of Rajasthan. Cairn started output from Mangala - the nation's largest onland oil find in more than two decades in late August 2009.

Cairn India said oil reserves in its Thar desert field in Rajasthan have increased to 4 billion barrels of oil equivalent.

Previously, discovered in place resources were pegged at 3.7 billion barrels of oil and oil equivalent gas, the company said in a press statement here.

"Resource base provides potential to produce 240,000 barrel of oil per day (as against previous estimate of 175,000 bpd)," it said.


Cairn said it is on track to ramp up output from Rajasthan fields to 125,000 barrels per day in the second half of 2010. Current output is around 20,000 bpd.

The company has tied up sale of 143,000 bpd (over 7 million tonnes a year) of oil.

Cairn said production potential from Mangala, the largest field in the block, has increased to 150,000 bpd from previous 125,000 bpd.


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India to grow 8.5% next fiscal: PM Manmohan Singh




Src: Economictimes.Indiatimes

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22 March 2010

Market Watch: Stocks seen lower on global cues, RBI action

Market Watch: Stocks seen lower on global cues, RBI action

MUMBAI: Stocks are likely to open with a negative bias tracking losses across Asia. There will also be a knee-jerk reaction to Reserve Bank of
India’s move late Friday where it hiked interest rates with immediate effect. Volatility is also likely to be high with the F&O expiry for the March series due later this week.

“The market continues to trade sideways with high volatility but ended in green. This short term trend can be reversed only if Nifty slips below 5,220 level. We can see markets going sideways and consolidating before we head towards the 5300 level. The RSI indicates that the markets are in the overbought territory, so one has to be cautious while taking fresh position at higher levels. The long term trend however of the market is positive until Nifty holds its 50-day moving average of 5,017, till then every dip in the market should be taken as a buying opportunity. Support for Nifty seen at 5,210- 5,180 and resistance is seen at 5,280- 5,330,” said Nirmal Bang Securities.

Asian stocks traded lower Monday after an International Monetary Fund official said advanced economies were under pressure to tackle the debt situation and on growing worries that central banks in Asia may step up efforts to curb inflation.

In a late evening action on Friday by the RBI, it has increased both repo and reverse repo rates by 25 basis points to 5% and 3.5% with immediate effect. This may have a sentimental impact on stocks Monday.

Meanwhile, on Friday, increased buying activity in the last half hour of trade helped the equity indices to close above psychological resistance levels. National Stock Exchange’s Nifty ended at 5262.80, up 16.9 points or 0.32 per cent. The broader index hit a high of 5269.95 and low of 5237.10. Bombay Stock Exchange’s Sensex closed at 17,578.23, up 58.97 points or 0.34 per cent. The 30-share index touched a high of 17600.87 and low of 17502.14.


Stocks that can turn out to be good bets for long run

Top 5 stock picks | Best mid-term picks

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New 52-week high by settlement?

The market alternated between sessions of tight range-trading and net gains. The Nifty closed at 5,262.8 points for a week-on-week gain of 2.45 per cent. The Junior closed at 10,607 points for a gain of 0.93 per cent while the Defty rose 2.4 per cent with the rupee slightly softer.

Breadth was reasonable with advances outnumbering declines but smaller scrips definitely underperformed the pivotals. The BSE 500 was ahead by 1.8 per cent. Volumes were low in both cash and derivatives segments. The domestic institutions remained moderate net sellers while FIIs continued to be strong net buyers.

Outlook: The market trend remains up. But momentum is weak and there are several divergent bearish signals. There’s support at 5,150, and resistance beyond 5,250. The intermediate trend has been positive for six weeks. Given settlement, there is a good chance that the intra-day volatility will rise. The market could establish a new 52-week high beyond 5,310, but it may also end next week in correction mode with net losses. In fact, these two possibilities are not incompatible and could occur in tandem.

Rationale: The low volumes and narrowing breadth (where small stocks are under-performing) are bearish divergences in a market that’s making gains. The positive long-term trend and the positive intermediate trend should together be sufficiently in-phase to test the previous 52-week high (5,310 on Jan 6, 2009). But the divergences also suggest a possible correction quite soon. There’s clearly defined support at 5,150 and obvious resistance beyond 5,250 and near the 52-week high.

Three things could happen. The market rises beyond the 5,310 mark but fails to hold on to its gains, closing out next week with net losses. The market zooms beyond 5,310, heading into a new 52-week zone. The market continues to range-trade between 5,150-5,250. The negative divergences make the first (new high and net loss) scenario look more likely. In that case, the Nifty may swing between 5,150-5,350 with a wider daily high-low range. A correction below 5,150 would push it down till 5,050.

Counter-view: The upside breakout came in the past three sessions although it wasn’t backed by serious volume expansion. The uptrend could be strengthened by short-covering in the settlement week. In that case, 5,310 may be easily broken and exceeded. However that would be dependent on volume expansions. Maybe the settlement will be the trigger for that.

Bull & bears: Among major sectors, IT continues to outperform the Nifty while the Bank Nifty’s performance has been more unstable. Big IT stocks have done well in the last week though there was some selling on Friday. Financials and bank stocks could be under pressure on Monday. Auto and auto ancillaries are seeing profit-booking after a sharp run up.

Bulls displayed a sudden burst of enthusiasm for telecom stocks in the last couple of sessions. Cement has made steady gains. Real estate continues to be among the weaker sectors. FMCG companies especially HUL and ITC are stabilising after heavy selling. Energy stocks have seen a lot of volatility but the charts appear to be net-positive.

MICRO TECHNICALS

MAHINDRA & MAHINDRA
Current Price: Rs 1,073.5
Target Price: Rs 1,125


The stock has corrected to hit firm support. It has the potential to bounce back till around the Rs 1,125 level. Keep a stop at Rs 1,068 and go long. Increase the position beyond Rs 1,090 and reset the stop loss to Rs 1,085. Start booking profits above Rs 1,120.

AXIS BANK
Current Price: Rs 1,156
Target Price: Rs 1,125


The stock has seen heavy selling above the current level and it is likely to make a pullback till around the Rs 1,125-1,130 mark. Keep a stop at Rs 1,165 and go short. Start booking profits below Rs 1,135 and reset the stop loss to Rs 1,140.

INDIABULLS REAL ESTATE
Current Price: Rs 160.4
Target Price: Rs 145


The stock has seen a fair amount of selling. It’s bound to test support at Rs 155, and if that is broken, it will fall to around Rs 140-145. Keep a stop at Rs 164 and go short. Increase the position below Rs 155. Book profits below Rs 145.

SAIL
Current Price: Rs 247.3
Target Price: Rs 255


The stock has bounced off a solid support and its looking bullish with decent volumes in the past three sessions. It has a minimum target of Rs 255 and it could rise further. Keep a stop at Rs 242 and go long. At Rs 255, book 50 per cent profit and reset the stop to Rs 252.

RCOM
Current Price: Rs 167.95
Target Price: Rs 180


Volumes have risen with prices. There’s a potential target of Rs 180. Keep a stop at Rs 164 and go long. Increase the position above Rs 169. Start booking profits above Rs 177. If you wish to hold a position beyond Rs 180, reset the stop to Rs 178.


Analysts' corner 22-MAR-10
Tech Mahindra’s recent deal restructuring with BT has been excessively discounted by the markets, even as positive news flow such as new deal wins, etc.
Smart Portfolios outperforms 22-MAR-10
True to its name, Smart Portfolios outclassed the benchmark indices once again.
Markets at a glance 22-MAR-10
Encouraging advance tax figures and S&P’s upgrade of India’s ratings outlook triggered renewed buying interest in Indian stocks.
Attractive strangles close to money 22-MAR-10
Derivatives trading was marked by low volumes and average carryover.
New 52-week high by settlement? 22-MAR-10
Low volumes and negative divergences.
The perfect hedge 22-MAR-10
Hedging a portfolio is an illusion, because a near perfect hedge delivers more than a risk-free return consistently.
Greetings, not so warm 22-MAR-10
While the past track record is not exciting, the year ahead is expected to be significantly better.
Not enough glitter 22-MAR-10
Although Shree Ganesh Jewellery House’ track record and growth plans appear good, the IPO pricing already captures the medium-term upsides.
Spreading its wings 22-MAR-10
While the Parkway acquisition is a long term positive for Fortis Healthcare, the upsides are priced in.
Retail thrust 22-MAR-10
A good track record and expertise in larger-sized diamonds are positives, but the IPO pricing leaves little room for upsides in the near-term.
Africa calling 22-MAR-10
Tura’s acquisition would extend Godrej Consumer’s foothold in the fast growing African markets.
Turnaround bets 22-MAR-10
A few stocks, which have been lagging behind due to various concerns, could see a revival in fortunes going ahead.


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Src: Economictimes, Business-standard

21 March 2010

Know About Bharti-Zain

Bharti ties up $8.3 bn funding for Zain deal

Know about Bharti- Zain

Zain Group, is a mobile telecommunications company founded in 1983 in Kuwait as MTC or Mobile Telecommunications Company, and was later rebranded to Zain in 2007. Zain has commercial presence in 25 countries across Africa and the Middle East, with an estimated work force of 13,000.[7] As of February 2010, about 60% of Zain's customers were in Africa although Africa contributed only 15% to the group's net profit. Zain has a total of 65 million customers. [8]

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Bharti Airtel


Bharti Airtel (BSE: 532454) formerly known as Bharti Tele-Ventures LTD (BTVL) is the largest cellular service provider in India, with more than 124 million subscribers as of February 2010.[2] With this, Bharti is now the world's third-largest, single-country mobile operator and sixth-largest integrated telecom operator. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Bharti Mittal. The company also provides telephone services and broadband Internet access (DSL) in top 95 cities in India. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore.'


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