Investor's Guide: ET

Investor's Guide

Top stories
Bargain hunting helps indices close higher25 Aug, 2008, 0513 hrs IST, DEEPAK MOHONI
The market declined for the second successive week, with the Sensex finishing 2.19% or 323 points lower, the Nifty losing 2.33% and the CNX Midcap falling 2.71%.

Global stock indices mirror each other 25 Aug, 2008, 0502 hrs IST, Shakti Shankar Patra
Though the harbingers of globalisation may not have envisioned it, the interdependence of world economies and the free flow of capital have made global stock indices mirror each other.

BoI's stock a good bet for long term investors
25 Aug, 2008, 0452 hrs IST, Karan Sehgal & Diana Montei Ro
Bank of India’s cheap valuations belie its strong performance across key parameters. The stock is an interesting bet for long-term investors.

Piramal stock outperformed the Sensex 25 Aug, 2008, 0433 hrs IST, Kiran Kabtta
Piramal Healthcare’s stock has outperformed the Sensex since the start of this year. There’s still significant upside left in the stock and long-term investors can accumulate it at the current price.

Analysts'Picks: Tata steel, Idea cellular, Tata chemicals, Lupin, ONGC
25 Aug, 2008, 0424 hrs IST
Tata steel, Idea cellular, Tata chemicals, Lupin, ONGC are good for investment.
Analysts'Picks: ONGC Govt had indicated that subsidy-sharing in FY09 will be fixed at Rs 45,000 crore for upstream cos Rs 20,000 crore for OMCs and oil bonds issuance at Rs 94,600 crore.
Analysts'Picks: Lupin Lupin has entered into multiyear agreement with Forest to promote the latter’s VHC product AeroChamber Plus to paediatricians.
Analysts'Picks: Tata chemicals Goldman sachs initiates ‘buy’ recommendation on Tata Chemicals with a target price of Rs 435, implying 29% potential upside.
Analysts'Picks: Idea Idea launched its mobile services in Mumbai last week.
Analysts'Picks: Tata steel CLSA maintains ‘outperform’ rating on Tata Steel, but lowers its target price to Rs 745.

Stock market may undergo correction in short term 25 Aug, 2008, 0418 hrs IST
With FY09 valuations looking fair, the stock market may undergo a correction in the short term before seeking a trend.

KEL stable growth is good bet for investors 25 Aug, 2008, 0415 hrs IST, Ramkrishna Kashelkar
Kabra Extrusiontechnik’s stable growth prospects, low valuations and healthy dividend yield make it a good bet for long-term investors.

Investors can scale operations with Unitech and DLF
25 Aug, 2008, 0349 hrs IST, Supriya Verma Mishra
Investors who want to take advantage of growth in the domestic real estate sector can draw strength from DLF’s impeccable delivery record and scale of operations, while the bravehearts can go for Unitech.

LIC is on shopping spree! 25 Aug, 2008, 0331 hrs IST, Krishna Kant
Not Everybody is selling while it’s demoralising for investors to hear about the exodus of deep-pocketed FIIs, they can take heart from the fact that LIC, the big daddy of the Indian equity market, is on a shopping spree.

IT sector grapples with fluctuating rupee
25 Aug, 2008, 0325 hrs IST, Santanu Mishra & Ranjit Shinde
The IT sector is grappling with problems, but all’s not over yet. There are still some value picks for investors who are willing to be patient.


Source:ET

VC,PE updates

Articles from VCcircle.com

Balaji Telefilms, Star Group To Terminate Shareholding, JV Agreement
Sapat International Eyes British Tea Brands
UTV Software Acquires US-Based Online Gaming Startup True Games
M&M Acquires 51% Stake in Chinese Firm For $26 Million

News Roundup: Aditya Birla To Build $10bn Financial Biz
News Roundup: Taxman May Knock At Your Door If Received Rs 50 Lakh
Baer Capital Launches India Long/Short Hedge Fund
There Are Still Brave People In IPO Market

IFC Invests $18M In Indian Mortgage Guarantee Co
Swiss-German Fund MPC Synergy Invests $296 million In Phoenix Mills
Equitas Gets $12.5M Fund Infusion From Three Funds
Dawnay Day Sells Its Stake In India Venture To New Silk Route

Seventymm Raises $12 Million In Third Round From NEA Indo US Ventures
Ojas Venture Partners Invests In Mobile Tech Firm Mango
Matrix Partners Invests $7 Million In Mumbai Play School Tree House
Basiz Fund Services Gets $2 Million From NEA Indo US Ventures

Job Listings
Sr. Associate at Singhi Advisors Ltd
Assistant General Counsel at Top US Bank
Associate Vice President - Corporate Finance ...... View All

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IndiaPE.com

Flawless Diamonds to acquire distribution company in Dubai
California Software to buy UK firm for $60 m
NMCE may sell equity stake to Singapore Commodity Exchange
Future Group to pick stake in Blue Foods

Star may buy stake in Asianet
SRL Ranbaxy mulls merger with Fortis Health
PE funds join hands to put money in firms
3i, Kotak, NSR eye stake in Balaji

Kirloskar set to buy Germany's LDW
Dawnay Day sold to New Silk Route
VC Investment in India Jumps 120% to $238 Million in 2Q08
Anil Ambani eyes stake in Balaji

German fund buys stake in Phoenix SPVs for Rs 1,300 crore
Merrill Lynch picks up 50% in Salarpuria's hotel project
Seventymm raises Rs 50 cr in Series C funding

Source: Above sites.

Stock Analysis:BL

TECHNICAL ANALYSIS: Index OutlookIt was an irresolute trading week on the Indian bourses. There were no positive triggers to enthuse the market participants. On the other hand, the plethora of negatives that have been analysed thread-bare, do not appear to have the power to ...

STOCKS: Dabur India: BuyA large repertoire of FMCG (fast moving consumer goods) brands, a healthy pace of new launches and ability to manage margins amid volatile input costs make Dabur India a good addition to any long-term investor’s portfolio. ...

VENTURE CAPITAL: Clinching VC fundingHaving ambitions of becoming an entrepreneur? Do you have a commercial idea that you think is viable? Venture Capitalists (VCs), who provide money for nascent businesses, are the people you should get in touch with. ...

CEMENT: Cement: Lower valuations trigger M&AWith a volume growth of over 9 per cent per annum in the last three years, the Indian cement industry has drawn the attention of many foreign bigwigs over the years. The stimulus for entry into the Indian cement sector is getting stronger with ...

TECHNICAL ANALYSIS:
Reliance Infra (August 24, 2008)
Unitech (August 24, 2008)
Infosys (August 24, 2008)
Tata Steel (August 24, 2008)
Reliance Ind (August 24, 2008)
SBI (August 24, 2008)
Index Outlook (August 24, 2008)

Query Corner: What the charts say

STOCKS: Tata Steel: BuyInvestors can consider buying the Tata Steel stock trading at Rs 594, which is a price-earnings multiple of eight times its standalone earnings and about five times its likely consolidated earnings for FY-09 . The company’s integrated ...

STOCKS: Elecon Engineering: HoldInvestments can be retained in the stock of Elecon Engineering, an established player in both material handling equipment (MHE) and industrial gears business. At the current market price of Rs 112, the stock trades at about 11 times its likely ...

STOCKS: Motherson Sumi: BuyInvestors with a long-term perspective can consider exposure to the Motherson Sumi stock. At the current market price of Rs 80, the stock trades at a price-earnings multiple of about 15 (estimated FY-10 earnings). Though this valuation may ...

DERIVATIVES MARKETS: Derivative strategies: Using puts for discount buysTraders extensively use limit-orders to buy a stock at a discount to the market price. The present market structure does not allow traders to use Good Till Cancelled (GTC) order to buy or sell a stock at a certain price. Everyday, a trader has ...

INVESTMENTS: Go for gold‘Gold’, as an investment option, has been in the news in recent times. Suddenly every analyst is suggesting that gold should form part of every portfolio. And they are right. ...

DERIVATIVES MARKETS: Nifty future may drift further downThe Nifty August future lost another 2.5 per cent over the week to close at 4324.1 points against its previous week’s close of 4434.9. With just four days left for the settlement, Nifty August future is yet again under siege of ...

STOCK MARKETS: Baskets of XE-mail your guess before Tuesday to:

STOCK MARKETS: Bull's EyeE-mail your response by Tuesday to


For more: http://www.thehindubusinessline.com/iw/index.htm


Source: BusinessLine.

Growth: Can India catch up with China?

Growth: Can India catch up with China?



Can China and India sustain their current growth rates?

A traditional answer to this question is conditional: yes, provided they continue to implement policy reforms. But historical experience allows a less guarded answer.

There are few examples of countries that have grown as strongly and for such long periods as India and China have - 6 per cent and 10 per cent, respectively, for nearly three decades - and then suffered a sharp slowdown or collapse.

If history is a reliable guide, then barring major upheavals, economic growth looks likely to continue in both countries until some threshold level of prosperity is attained.
But why does growth beget more growth? One mechanism is simply that growth signals the fact of profitable economic opportunities, which encourages investors to rush in, first in response to these opportunities but then in response to each other - this is growth as a confidence trick - creating a virtuous circle.


If countries are relatively poor, if their markets are large, and if their policy framework is basically sensible - all of which are true of China and India - the chances of the growth-begetting-growth dynamic taking hold are high.

But in addition to the signalling effect, growth may itself cause changes which have in turn a growth-reinforcing effect - a kind of positive feedback loop. A good example is education.
For long, development economists bemoaned the poor levels of educational attainment in India, directing their critique at the government's failure to supply better education. But economic growth changed the education picture dramatically.


It increased the returns to, and hence the demand for, education. And if government supply remained weak, consumers simply turned to the private sector to meet their demand for education.


Improvements in educational attainment over the last 15 years are attributable in part to more rapid growth..



For more: http://specials.rediff.com/money/2008/aug/21slide2.htm



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Other Rediff articles:



9 great lessons from Dhirubhai
The world's 11 best metro rail systems
India, 61: The Icons That Define India

Achievers
• Meet India's youngest MTech from IIT Madras
• 'Persistence is the sure formula for success'
• A millionaire hotelier shares his success secrets

Information You Can Use
• Part-time engineering courses• PhD in biotechnology• IIMC’s Computer Aided mgt• IIT's alumni meet• Interested in Japanese Mgmt?• Are you a budding ad-man?• NITTTR's MTech, ME degrees• Lucknow Univ's MBA courses• Calcutta Univ's mgmt courses• IIAS research Fellowships• Associateship in Nuke Physics• Want to study engg abroad?• TAPMI's PG prog in mgmt• IRMA's PGP in Rural Mgmt• Want a career in banking?• XLRI's distance edu courses• SP Jain's global MBA

Source:Rediff

US Stks- Lehman jump, oil plunge drives Wall St rally

US STOCKS-Lehman's jump, oil's plunge drives Wall St rally
US STOCKS-Market ends higher on Lehman's rally, lower oil

Index Value: 11,628.06
Trade Time: 4:08PM ET
Change: 197.85 (1.73%)
Prev Close: 11,430.21
Open: 11,426.79

* Hopes for an investment in Lehman boost financials
* Buffett says stocks more attractive now than a year ago
* Bernanke encouraged by drop in commodity prices
* Dow up 1.7 pct, S&P 500 up 1.1 pct, Nasdaq up 1.4 pct (Updates to close)
By Steven C. Johnson

NEW YORK, Aug 22 (Reuters) - U.S. stocks rallied on Friday to score their best daily gain in two weeks as hopes that Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) may attract a major investor lifted financial stocks while a plunge in oil prices soothed worries about inflation and consumer spending.

The rally helped the broader market erase most of the losses suffered in recent days, leaving the Dow and the S&P 500 only a touch below where they were when the week began.

Shares of Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) ended up 5 percent after the Korea Development Bank [KDB.UL] said the U.S. brokerage was a possible acquisition target.For details, see [ID:nSEO332057]. At one point, Lehman's stock was up more than 15 percent.

Lehman is among the U.S. banks whose business has been battered by mounting losses sparked by the U.S. housing slump. Lehman's stock has lost nearly 80 percent of its value this year and the investment bank has taken $7 billion in write-downs. Earlier this week, several brokerages forecast more write-downs to come. Continued...
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Oil falls 5.4 percent in biggest drop since 2004

Crude oil prices fell more than 5.4 percent on Friday in the biggest one-day slide since 2004 as dealers turned their focus to rising supply levels and weakening global demand.
A rebound in the U.S. dollar encouraged the sell-off, applying downward pressure across the commodities markets by weakening the purchasing power of buyers using other currencies, dealers said.

The slide adds to a more than 20 percent fall in the price of crude since mid-July and could increase the chance oil cartel OPEC will cut official production limits when the group meets in Vienna on September 9.

U.S. crude fell $6.59, or 5.4 percent, to settle at $114.59 a barrel -- the biggest fall in percentage terms since December 27, 2004. London Brent crude fell $6.24 to $113.92 a barrel.

"People who were buying yesterday are taking profits today," said Peter Beutel, analyst at consultancy Cameron Hanover. "There is also renewed technical selling and talk again of demand destruction. The dollar is strong again too."

The declines Friday were encouraged by two reports -- one showing an uptick in OPEC crude oil output and another showing an expected decline in U.S. travel over the September 1 Labor Day holiday weekend as high fuel prices hit consumers.

Industry consultant Petrologistics said on Friday OPEC oil output was expected to rise in August by 450,000 barrels per day, to 32.95 million bpd, a factor that could further beef up inventory levels in consumer nations.

Meanwhile, the U.S. auto and travel group AAA said that Labor Day holiday travel was expected to fall this year by the largest amount in at least eight years as consumers struggle with higher gasoline prices and airfares. Continued...


Source: Reuters.com.

The world's richest college dropouts

The world's richest college dropouts -I

Billionaire college dropouts!
August 20, 2008

There are many college and school dropouts who have amassed a huge amount wealth. But good education is never a waste of time, because there are millions of dropouts, but only a few of them go on to become billionaires.

The billionaire college dropouts list shows that a combination of qualities like vision, determination, hard work, business acumen, ability to spot an opportunity and turn it into a winning venture, leadership and motivational skills, etc is more important than a college degree.
Here are some college dropouts who went on to become billionaires. . .

Dhirubhai Ambani

Dhirajlal Hirachand Ambani (1932-2002) was born into a modest family of a schoolteacher. When he was 16, he dropped out of school and went to Aden to work as a gas-station attendant and then later as a clerk in an oil company.

He returned to India 10 years later and started a business with a meagre capital. By the time of his demise, his company -- Reliance Industries Ltd -- had grown into a mammoth business empire! He was one of India's greatest ever entrepreneurs.

Dhirubhai is credited with having single-handedly breathed life into the Indian stock markets and bringing in thousands of investors to the bourses. In the process he became one of the world's richest men.

His modern way of thinking brought into play his second achievement: the idea that Indian manufacturing could and should be world class.

His sons, Mukesh and Anil are among the top 10 richest persons in the world, each of them worth over $40 billion..

For more :
http://specials.rediff.com/money/2008/aug/20sl1.htm - I
http://specials.rediff.com/money/2008/aug/21sl1.htm - II

Source: Rediff.com

Sensex gains 158 pts as blue chips bounce back:Sify, India

Sensex gains 158 pts as blue chips bounce back

The market shrugged off a rise in inflation, crude oil prices, weak Asian bourses and a highly negative start and closed with sharp gains today.

There were several volatile spells during the day but in the end, it was a buoyant close for the benchmark indices Sensex and Nifty thanks to sustained buying in metal, bank, FMCG, oil and auto stocks in afternoon trade.

Power, pharma and information technology stocks also broke free from their lower levels and rallied higher. Capital goods, PSU and realty stocks ended well off their intra-day lows thanks to renewed buying support.

While the Sensex, which rose to a high of 14,428.52 today, ended at 14,401.49 with a gain of 157.76 points or 1.11%, the Nifty closed at 4327.45, slightly off its intra-day high of 4337, with a gain of 43.60 points or 1.02%.

Earlier, in morning trade, the Sensex and Nifty had tumbled to 14,136.86 and 4248 respectively following a weak start.

Even as several large cap stocks marched on to higher levels this afternoon, the mood remained highly subdued with regard to stocks from midcap and smallcap segments. As a result, the market breadth was weak when trade ended today.

Out of a total of 2725 stocks traded on BSE, 1212 stocks closed with gains. 1411 stocks posted losses and 102 stocks ended flat.

Sterlite Industries and Hindalco ended stronger by over 4.25%. Hindustan Unilever moved up by 3.75%. HDFC gained 3.25%. BHEL, Tata Power, Reliance Infrastructure, HDFC Bank and Maruti Suzuki surged 2% - 3%.

Reliance Communications, Infosys Technologies, Ranbaxy Laboratories, Tata Motors, ACC, Mahindra & Mahindra and Reliance Industries advanced by 1.5% - 2%.

Bharti Airtel, Tata Steel, ONGC, Jaiprakash Associates and DLF posted modest gains. State Bank of India and ICICI Bank gained marginally. Tata Consultancy Services closed flat.
SAIL, Reliance Petroleum, Nalco, Cairn India, Tata Communications and Zee Entertainment ended with sharp gains. BPCL, Dr. Reddy's Laboratories and Power Grid Corporation finished with sharp losses.

Satyam Computer Services ended 3.15% down. Grasim Industries and NTPC also closed with sharp losses. Wipro eased by 0.9%. Larsen & Toubro and ITC declined by 0.85% and 0.3% respectively.

-----------------------------------------
Other articles:
Closing Bell
Anil Ambani ready to talk peace, meet big brother Mukesh
Short covering in stock futures
Equities bounce back; oil & gas, metals lead
Tata threatens to move Nano out of Singur
Coal India may soon become a 'Navratna'

'No gas deal between NTPC & RIL'
All GSM cos to connect with RCOM's network
Product Review: Apple iPhone
Anil ready to meet Mukesh any time
Ask mother to help settle gas dispute, court tells Ambanis

Source: BL,BS,ET,Sify.

Top Headlines

Headlines

Rupee strengthens; gold remains flat at Rs 11,910
Woods, Nishita Shah among Forbes' next-gen billionaires list
Two young Indian CEOs make $15.7 mn between them
GSM cos to link with RCom's network
Govt nod to IPTV policy for roll out

$1.49 bn committed in NELP-VII
FDI cap in DTH may rise to 74%
Fertiliser cos to get Rs 53k cr
Nifty below 4,300, Sensex 400 pts down
RComm to launch IPTV by December

Govt clears IPTV policy
ONGC Videsh gets ok for Imperial Energy bid
China's ICBC becomes world's most profitable bank
RIL mulling JV with Petrobras
RPL refinery to begin production in Sept

NSE set to launch currency futures on August 29
Videocon to go ahead with LCD plant in Maharashtra
Exide to expand capacity; enter new overseas markets
Punj Lloyd reported a robust net profit growth
Nagarjuna Constructions gets orders of Rs 474 crores

RIL misused trustee position: RNRL
India may get exemption at the NSG: Experts
Infotech Ent enters O&G space
Lupin eyeing Australian generic co stake
RIL-RNRL case hearing delay may hit RIL
RNRL shifts stance, ready to trade gas for 3 yrs

Source:ET,MC,BS

Sensex plummets 435 pts as bears strike; Inflation at 12.63

Sensex plummets 435 pts as bears strike

After a weak start this morning, the market kept losing ground as the session progressed as the bears, who had taken a breather yesterday, swung back into action once again.
Stockometer Top gainers Worst losers
With global markets turning weak and crude oil prices inching higher, investors were in no mood to build up positions this morning. Fears of interest rates hardening further on the back of high inflation and lower growth appeared to have weighed in significantly in afternoon trade.

While the Sensex, which tanked to a low of 14,201.18 in late afternoon trade, ended with a loss of 434.50 points or 2.96% at 14,243.73, the Nifty closed lower by 131.90 points or 2.99% at 4283.85, a few points off a low of 4271.30.

Interest rate sensitive bank and realty stocks took a severe hammering. Mirroring the sell-off in these sectors, the Bankex and Realty indices tumbled by 5.16% and 5.05% respectively.
PSU, power, capital goods, metal, media & communications and information technology stocks too declined sharply. Reflecting their fall, the respective sectoral indices drifted down by 2% - 3.75% today. The Oil & Gas barometer slipped by 1.94%. HC and Auto indices lost around 1.5% each while the Consumer Durables and FMCG indices eased by around a per cent.

Midcap and smallcap stocks also attracted heavy selling and mirroring their decline, the BSE Midcap and Smallcap indices lost 2.04% and 1.83% respectively.

The market breadth was very weak today. Out of 2713 stocks traded on BSE, 1914 stocks finished on a negative note. 734 stocks posted gains and 65 stocks ended flat. Ranbaxy Laboratories (up 1.55% to Rs 513.40) was the lone gainer from the Sensex pack. Among Nifty stocks, besides Ranbaxy Laboratories, Cairn India (1.8%) and ABB (0.15%) were the ones to end on a positive note.

State Bank of India closed with a big loss of 7.1%. HDFC Bank and ICICI Bank, the other banking sector heavyweights in the Sensex, went down by 5.8% and 5.15% respectively.

NTPC, DLF, Reliance Infrastructure, Jaiprakash Associates and HDFC lost 4% - 6%. Reliance Communications, BHEL, Hindalco, Larsen & Toubro, Grasim Industries, ACC, Wipro, Hindustan Unilever, Tata Consultancy Services, Tata Steel, ONGC and Infosys Technologies eased by 2% - 4%.

Bharti Airtel, Mahindra & Mahindra, Reliance Industries, Sterlite Industries, Tata Motors, Maruti Suzuki and Satyam Computer Services also closed on a weak note. Nalco, Unitech, BPCL, Tata Communications, Suzlon Energy, Sun Pharmaceuticals, Punjab National Bank, Ambuja Cements, HCL Technologies, SAIL, Reliance Petroleum and Idea Cellular ended sharply lower.

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Inflation rate rises to 12.63%

India's annual rate of inflation zoomed to a 16-year high of 12.63 percent for the week ended Aug 9, as compared to 12.44 percent the week before, but an unfazed finance ministry said prices had stabilised.

"Prices of essential commodities, which include food grain, pulses, edible oil, vegetable, dairy products and some other products including kerosene, soap and safety matches have more or less stabilised," the finance ministry said in a statement.

The official wholesale price index (WPI) released by the ministry of commerce and industry Thursday showed an increase of 0.3 percent in the index for food article, while that of textile group rose 1.6 percent.

Non-metallic index products rose 0.3 percent.

The increase in index for food articles was due to higher prices of masoor dal (3 percent), tea, moong and gram (2 percent each) and milk (1 percent).The index for manufactured products like mustard oil rose 0.2 percent while that of rubber and plastic products by 0.2 percent.

The index for non-food articles group like sunflower, raw rubber and cotton declined by 0.6 percent and the index for chemical and chemical products like benzene declined by 0.1 percent.
The ministry said the WPI for all commodities stood at 236.9 as compared to 236.1 (provisional) for the week ended June 14 and annual rate of inflation based on final index, calculated on point-to-point basis, stood at 11.8 percent as compared to 11.42 percent (provisional).

The finance ministry in a statement said inflation rate for 30 essential commodities stood at 6.74 percent for the week ending Aug 9, compared to 6.54 percent for the week before.

Double digit inflation to continue till December: D&B
Earlier Thursday, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the problem of inflation was short term and would moderate in due course, as the government has taken several monetary and administrative measures to rein in inflation.
"Inflation will moderate. Let's have patience," Ahluwalia said.
Ahluwalia also brushed aside apprehensions that the government's recent decision to hike employees' salaries would have any adverse impact on the country's economy.

Inflation or terms of trade adjustment?
"We will be able to deal with any implications (arising out of the salary hike)," he said.
The Prime minister's Economic Advisory Council (EAC), in its "Economic Outlook Report 2008-09", has predicted a 7.7 percent economic growth in the current fiscal, as compared to 9.1 percent last fiscal.

More India business stories
Former Reserve Bank of India (RBI) governor C. Rangarajan, while releasing the EAC's economic outlook report here Aug 13, said inflation would moderate to 8-9 percent by March 2009.