Morning Views

Top 5 picks


Mid-term picks


Check out stocks creating value from non-core business


Magma Fincorp a good bet for long-term investors


******************************************
Heard on the street


Failure to get nod for name change drags JRG Sec

Shares of JRG Securities fell over 2% on Monday as reports that the special resolution to change the name of the broking firm to ‘Inditrade Capital’ failed to get approval from shareholders. According to sources, the Baring India-promoted broking firm received support from just about 68% of the shareholders supporting the name change. A special resolution needs the approval of 75% of the polled shareholders to get it successfully passed.

Company officials were not available to confirm the result of the postal ballot. According to sources in broking circles, private equity firm Baring India has been running the Kochi-based broking JRG Secs for the past one year, after original promoters stepped down from the management due to differences with the PE firm. A month ago, JRG International Brokerage DMCC, JRG Securities’ Dubai subsidiary, removed the board members of JRG Securities (on the boards of JRG International) citing “low shareholding and non-participation in business matters” as reasons.

Punters build long positions in frontline stocks

Bargain hunters seem to be scrounging for value at some of the beaten-down sugar counters. On Friday, HDFC Asset Management bought three lakh shares of Dhampur Sugar through a bulk deal on BSE. On Monday, punters were seen building up long positions in frontline stocks like Balrampur Chini and Bajaj Hindusthan. Sugar shares have been falling for the past one month in line with declining international sugar prices.

Most analysts feel there could be some more downside in store as a lower-than-expected shortfall in globally production and government measures could keep sugar prices in check. So, the renewed buying interest in some of the stocks has come as a surprise. While fund houses could be trying to average out their cost of acquisition, punters could be betting on technical factors, as most of these stocks appear to be oversold in the short term.

Options see a build-up in far-month contracts

The options segment is seeing some build-up in far-month contracts. After seeing a noticeable surge in Open Interest creation in Nifty April 4800 Put earlier this month, now Nifty June 4800 Put saw a build-up in Open Interest on Monday. Though the quantum of Open Interest build-up is not very significant, analysts said the timing is surprising. This is because Implied Volatility of options is at its lowest level. Also, options sellers, of late, have generally refrained from writing in such far month contracts.

Contributed by Shailesh Menon & Nishanth Vasudevan

******************************************

Logistics Sector

Purvankara Projects

BL Kashyap

India Cements

India Cements

Reliance Industries Ltd

Shoppers Stop

Src: ET and DP blog

Market remains tightly range-bound

Market remains tightly range-bound

There was minimal movement in the stock market with prices stuck inside a very narrow range. The Nifty registered a rise of 0.95 per cent, closing at 5,137 points while the Sensex rose 1 per cent to 17,166 points. The Defty rose by 1.43 per cent as the rupee continued to strengthen.

Breadth was neutral or slightly negative. Volumes were low in both cash and derivatives segments. Smaller stocks under-performed. The Midcaps was down 1 per cent, the Nifty Junior was down 1.4 per cent and the BSE 500 was up a nominal 0.2 per cent. FIIs continued to be large net buyers while domestic institutions sold.

Outlook: The short-term trend is impossible to read and we will just have to wait for a breakout outside 5,050-5,150. Any such breakout is likely to be accompanied by volume expansion and likely to lead to a move of 100-150 points in the direction of break. The intermediate trend appears to be bullish and so is the long-term trend.

Rationale: The intermediate trend has now been up for five weeks since the market bottomed at 4,692 on February 5. Since it's in phase with the long-term trend, which is also up, it could continue to run North over the next 3-6 weeks. The next peak should clear 5,160. Thus net gains are slightly more likely. The danger signal for an intermediate trend reversal would be a drop below 4,850, so there is also room for a short-term downtrend.

The short-term trend is showing a classic consolidation pattern with very tight ranging and low volumes. Any breakout will probably come on higher volumes and the market could swing by 100-odd points in the very next session. So, if we see a close outside 5,050-5,150, expect a move till 4,950 or 5,250 at least.

Counter-view: Volumes have been abnormally low for a bull market with a favourable intermediate trend. Breadth also looks weak with smaller stocks underperforming pivotals. Both low volumes and narrowing of breadth are bearish signals. It is possible that this is the precursor to an intermediate reversal. In that case, as mentioned above, the key level to watch would be 4,850.

Bulls & Bears: Traders should stick to highly liquid counters because losses in small stocks as occurred last week are usually accompanied by absence of liquidity. The banking sector, NBFCs, housing finance companies and DFIs made some positive gains with the Bank Nifty up 1.5 per cent. The CNXIT also rose by 2 per cent though there was quite a lot of volatility within the sector. The auto sector saw profit-booking that could continue. Sugar stocks continued to slide

In other sectors trading was very choppy and stock specific. Metals were up one session and down the next – Sterlite closed strong while Hindalco looked weak but that could be reversed on Monday. Ditto for real estate where there was no clear sector pattern. In FMCGs, Hindustan Unilever took a hammering while Colgate looked strong and ITC recovered from the post-Budget sell off.

MICRO TECHNICALS

MARUTI SUZUKI
Current Price: Rs 1,463
Target Price: Rs 1,430

The stock has recovered off recent lows at Rs 1,315 and it is hitting resistance again. A slide till support at the Rs 1,430 level is a minimum expectation and it could fall till Rs 1,400. Keep a stop at Rs 1,470 and short. Book at least 50 per cent profits below Rs 1,435 and reset the stop to Rs 1,450.

---

LIC HOUSING
Current Price: Rs 810
Target Price: Rs 860

The stock has completed a falling wedge pattern and looks set for an upside breakout. It saw some volume expansion last week. The upside could be around Rs 860. Keep a stop at Rs 800, and go long. Add to the position above Rs 835 and reset the stop to Rs 820.

---

ORIENTAL BANK
Current Price: Rs 291.40
Target Price: Rs 280

The stock hit resistance above Rs 305 and has started a reaction. It is likely to slide till around the Rs 280 level. Keep a stop at Rs 297 and short. Increase the position below Rs 287. Book profits at Rs 280. If Rs 297 is broken, reverse the position and go long with a target of Rs 307.

---

COLGATE PALMOLIVE
Current Price: Rs 736.40
Target Price: Rs 775

The stock has a pattern that has already pushed it to recent highs. It has the potential to reach Rs 775, at least on intra-day basis, though projections in a new zone are always subject to greater error. Keep a stop at Rs 725 and go long. Above Rs 750, increase the position and reset the stop to Rs 745. Book profits above Rs 775.

---

TCS
Current Price: Rs 796.95
Target Price: Rs 840

The stock is testing resistance at around Rs 800. If it breaks out, it will be in a new zone with a tentative target of about Rs 840. Keep a stop at Rs 785 and go long. Above Rs 805, increase the position and reset the stop loss to Rs 800. Clear the position above Rs 835.

*****************************************

Persistence pays 15-MAR-10 Persistent Systems’ ability to grow its earnings at a steady rate and improving fundamentals make its offer investment worthy.

On a fast lane 15-MAR-10 Excellent growth prospects, an experienced management, strong parentage and reasonable valuations makes the ITNL IPO attractive.

Secure no more 15-MAR-10 The sale of Zicom's security business has raised concerns over deceleration in growth rates going forward.

Tight fit 15-MAR-10 Stiff valuation and high dependence on the distributor channels are key concerns for the Pradip Overseas IPO.

Road to riches 15-MAR-10 Despite some near-term issues, the infrastructure sector provides excellent growth opportunities which could translate into superlative gains for investors.

Fund managers in buy mode 15-MAR-10 The fund managers were riding the bulls last week while the broader markets moved sideways.

Markets at a glance 15-MAR-10 Indian bourses underperformed several global peers due to lack of positive triggers.

Analysts' corner 15-MAR-10 In the last conference call after the announcement of the company’s December 2009 quarter results, the management indicated the launch of five new projects and the first phase of the Mandwa project over the next 3-6 months.

Bet on rising volatility 15-MAR-10 Another week of tight range trading saw volumes dissipate in the derivatives segment.

Market remains tightly range-bound 15-MAR-10 Traders will have to wait for a breakout outside 5,050-5,150 for short-term direction.

'Gaining market share is our focus' 15-MAR-10 After a tough year, the retail sector is slowly getting back on its feet on the back of increasing consumption.

***************************************
Analysts' picks: Thermax, Sun TV, Titan Ind, Aditya Birla Nuvo

SKS Microfinance may hit Street with Rs 1,000-cr IPO

CEAT

Market may open lower on weak Asian stocks; inflation data, advance tax figures awaited

Daily News Roundup - March 15 2010

Monday morning exhaustion!

Apollo Tyres

Persistent Systems IPO Analysis

Src: ET and DP blog and Business-Standard

A miracle called Tirupur!

370)this.width=370">

One look at the unruly traffic, the noise, the pollution and the dusty, dug-up roads and you could be forgiven for wondering if you are in one of the many such small towns that dot the Indian landscape. But you couldn't be more wrong.

This place is pretty special, although there is no indication to the fact that it is one of the largest foreign exchange earners for India. Or that the biggest global brands get their garments made in this small city and that the garments made here are sold in the largest retail stores across the world.

Welcome to Tirupur (occasionally spelled Tiruppur), a city of around 600,000 people in Tamil Nadu. It has a population of over a million in the urban agglomeration and has been registering an annual growth of 30 per cent since 1998.

This city exports knitwear worth Rs 11,000 crore (Rs billion) (Rs 110 billion) a year but it has no airport -- the nearest one is in Coimbatore (50 km away) and the nearest seaport is in Chennai.

The first stop for any international buyer of Indian garments is Tirupur. Buyers from 35 countries frequently visit Tirupur. Tirupur can deliver customised samples in less than 12 hours; half a million pieces in a matter of days.

Click NEXT to read on. . .

Image: A worker arranges coloured skeins of yarn on a roof at a hand-dyeing factory.
Photographs: Reuters

Next

Read this article without fail

******************************************
Other USeful Articles from Rediff.com

The world's 10 biggest oil consumers

Future of electric cars in India

World's 10 most admired companies

The 23 richest Indians!

15 best cities to live in India


Src: Rediff.com

Know A Person, Website and Company

Person

Carlos Slim

Carlos Slim Helú (Spanish pronunciation: [ˈkarlos eˈslim eˈlu], Arabic: كارلوس سليم حلو‎), simply known as Carlos Slim (born January 28, 1940), is a Mexican engineer, businessman and philanthropist largely focused on the telecommunications industry. He is currently the wealthiest person in the world with a net worth of around US$53.5 billion through his holdings.^[1][3]

Slim has a substantial influence over the telecommunications industry in Mexico and much of Latin America. He controls Teléfonos de México (Telmex), Telcel and América Móvil companies. Though he maintains an active involvement in his companies, his three sons—Carlos, Marco Antonio and Patrick Slim Domit—head them on a day-to-day basis.

More @ http://en.wikipedia.org/wiki/Carlos_Slim

Website:

http://www.wix.com/

Company:

Hindustan Unilever

Hindustan Unilever Limited (HUL) (BSE: HUL) is India's largest fast moving consumer goods company, touching the lives of two out of three Indians with over 20 distinct categories in home & personal care products and food & beverages. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of over Rs. 13,000 crores^{[citation needed]}. HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.. It is headquartered in Mumbai, India and has an employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in June 2007 to “Hindustan Unilever Limited”.

More @ http://en.wikipedia.org/wiki/Hindustan_Unilever

Src: Wikipedia.org and etc

Today IIP Data

Views on NMDC FPO


Fortis a potential bet


Nifty to face resistance at 5180-5200


Market awaits IIP, Sensex holds 17000




Watch RIL, Sterlite... RIL breakout above 1035-1045 levels. Sterlite breakout above 829-835 levels. Keep Watch.


Buy NMDC for Purely Long-term investment. Buy Fortis Healthcarefor Short-Term gains.



Src: ET and DP blog

Forbes rank: Mukesh, Mittal in World's top 10 billionaires club

Forbes rank: Mukesh, Mittal in World's top 10 billionaires club


WASHINGTON: Mukesh Ambani and Lakshmi Mittal figured among world's top ten billionaires as Mexican tycoon Carlo Slim Helu beat Americans Bill

Gen Y CEOs | World's Top 10 CEOs | India's top 10 biz houses | Savvy girls in their twenties are new scions | Men & women behind India Inc's top guns

Gates and Warren Buffett to become the wealthiest person on earth. ( Watch )

Besides fourth ranked Reliance Industries chairman Ambani and fifth placed steel czar Mittal, four other Indians were among top 50 in 2010 Forbes list of the World's Billionaires released Wednesday with as many 49 Indians joining company with the planet's 1,011 richest people.

With his fortune swelling to an estimated $53.5 billion, up $18.5 billion in 12 months, Slim surged ahead of Microsoft cofounder Bill Gates, who had held the title of world's richest 14 of the past 15 years, the US business magazine noted.

Gates, now worth $53 billion, is ranked second in the world. He is up $13 billion from a year ago as shares of Microsoft rose 50 percent in 12 months. Buffett's fortune jumped $10 billion to $47 billion on rising shares of Berkshire Hathaway. He ranks third.

Eleven countries have at least double the number of billionaires they had a year ago, including China, India, Turkey and South Korea.

Fourth placed Mukesh Ambani with a fortune of $29 billion has global ambitions, Forbes said. So has his younger brother Anil Ambani ranked 36 with a $13.7 billion fortune.

Fifth ranked Lakshmi Mittal with a fortune of $28.7 billion is "looking to expand in his native India; wants to build steel mills in Jharkhad and Orissa but has not received government approval," Forbes noted describing him as "London's richest resident" who oversees ArcelorMittal, world's largest steel maker

Azim Premji with a fortune of $17.0 billion was ranked 28. "Software czar chairs $5.5 billion (revenues) Wipro, country's third-largest software exporter. Reported jump in net profits in last 2 quarters, signaling a rebound for US-dependent outsourcing giant."

Shashi & Ravi Ruia brothers took the 40th spot with a fortune of $13.0 billion. Their "$15 billion (revenues) Essar Group has weathered downturn and embarked on an expansion drive in all its businesses, including steel, oil and power."

Last among the Indians in top 50 was Savitri Jindal, ranked 44th, with a fortune of $12.2 billion. She took over as head of O.P. Jindal Group after her husband died in a helicopter crash in 2005.

Among other Indians on the billionaires list were Kushal Pal Singh (74), Kumar Birla (86), Sunil Mittal (87), Anil Agarwal (113), Adi Godrej & family (148), Shiv Nadar (201), N.R. Narayana Murthy & family (616), Rahul Bajaj (880) and Vijay Mallya (937).

*****************************************

Mukesh Ambani richest Indian for second year: Forbes

Mukesh Ambani, chief of petrochemicals giant Reliance Industries (RIL), has retained the title of being the world's richest Indian for the second consecutive year with a networth of $29 billion in the Forbes' list of wealthiest people on the planet.

Mukesh has been ranked fourth in the global list, topped by Mexican billionaire Carlos Slim ($53.5 billion), up from the seventh spot in 2009.

Leading the pack of 50 Indians in the list, he has added over $9.5 billion to his networth in the past 12 months.

Mukesh is followed by steel czar Lakshmi Mittal, who ranks fifth on the global list with a fortune of $28.7 billion. Mittal, has gained over $9 billion in the last year.

Wipro chairman Azim Premji, the next Indian on the list, is far below at the 28th place with a networth of $17 billion, although his rank has skyrocketed from the 83rd position last year with an addition of over $11.3 billion.

The richest Indian's brother, Anil Ambani, who was ranked at the 34th position in 2009, slipped two positions below to the 36th spot despite an increase of $3.6 billion in his networth at $13.7 billion.

Shashi and Ravi Ruia, the promoters of the Essar Group, were ranked at the 40th position, up from 86th last year, with a net worth of $13 billion.

The cumulative wealth of Indian billionaires has jumped by $118.9 billion and now stands at about $227.9 billion.

The Indian presence has doubled to 50 (from 24 a year ago) in the club of world's billionaires. "The world has 1,011 10-figure titans, up from 793 a year ago," Forbes said.

The league of 10 richest persons in the world now includes just two Indians -- Mukesh Ambani and Lakshmi Mittal.

There are, in fact, five resident Indians (up from two last year) among the 50 richest persons in the world, as Mittal is an Indian citizen, but resides in the UK.

Nine positions among top 100 from across the world are occupied by Indians, which include Mukesh Ambani (4th; $29 billion), Lakshmi Mittal (5th; $28.7 billion), Azim Premji (28th; $17 billion), Anil Ambani (36th; $13.7 billion), Shashi & Ravi Ruia (40th; $13 billion), Savitri Jindal (44th; $12.2 billion), K P Singh (74th; $9 billion), Kumar Birla (86th; $7.9 billion) and Sunil Mittal (87th; $7.8 billion).

Besides, the top 20 Indians on the global rich list include Anil Agarwal (113th; $6.4 billion), Pallonji Mistry (129th; $5.8 billion), Adi Godrej & family (148th; $5.2 billion), Gautam Adani (167th; $4.8 billion), Dilip Shanghvi (173rd; $4.6 billion), Shiv Nadar (201st; $4.2 billion), G M Rao (297th $3.2 billion), Malvinder & Shivinder Singh (297th; $3.2 billion), Uday Kotak (316th; $3 billion), Kalanithi Maran (342nd; $2.9 billion), Subhash Chandra, Micky Jagtiani and Indu Jain ranked at the 354th spot with a net worth of $2.8 billion each.

The list is dominated by Americans, two of whom have been ranked at the second and third positions -- Bill Gates and legendary investor Warren Buffett.

******************************************
Fund manager's guide on D-Street

Five Android phones that are expected in India soon

China overheating fears grow, spurring tightening talk
11 Mar 2010, 1805 hrs IST, REUTERS

Chinese consumer inflation spurted to a 16-month high in Feb and economic data displayed broad-based strength. Greece financial crisis | Lighter side of recession

India aims to be world's fastest growing economy

Forits jumps 5% on Parkways Holdings deal

Market awaits IIP, Sensex holds 17000

Pradip Overseas IPO Review

Purvankara Projects

Bharti Airtel Ltd

ILFS Transportation Networks IPO Analysis

Src: ET and DP blog etc

NSE enables investors to access US market

NSE enables investors to access US market

NEW DELHI: In a major development that will allow Indian investors access to the American market, the country's top bourse NSE has decided to

Correction offers opportunities Not a good time to start buying How to do stock trading? Decoding demat: Trade secrets

begin trading in futures contracts of Dow Jones Industrial Average (DJIA) and S&P 500 - the two key indices of the US market.

At the same time, Nifty - NSE's benchmark index comprising India's 50 top blue-chip stocks - would be traded on the Chicago Mercantile Exchange of the US.

The listing and trading arrangement for these indices, which are subject to regulatory approvals in India and the US, was announced by National Stock Exchange and CME in a joint statement on Wednesday.

Besides the cross-listing and licensing agreements, the two bourses have also entered into a "memorandum of understanding with respect to other areas of potential co- operation including related to development and distribution of financial products and services."

NSE's affiliate India Index Services and Products Ltd (IISL) has granted exclusive licence for Americas and Europe to CME Group for trading of Nifty 50.

Besides, NSE also announced an agreement to explore listing and trading of more India-linked products on Singapore Exchange Ltd, which already has a licence to trade in Nifty 50.


******************************************
'Man Industries a very strong stock among small-caps'


hardul Kulkarni, Sr. Technical Analyst, Angel Broking

Anyone of these stocks, Mukta Arts, Digjam that you are tracking on the charts?

Shardul Kulkarni : I would say that Digjam is one of the stocks that can move actually a little bit downwards rather than moving upwards because if you see the volumes have come on the big red candles that have been formed, so I would not be too positive on this stock unless and until it actually crosses the upside levels of 16-16.5. Mukta Arts I do not track.

Do you track Man Industries on the charts?

Shardul Kulkarni : Yes, Man Industries, one of the very strong counters in the small-cap space. I would say that the company has recently got an order and the stock is factoring in all the positives, so presently I would say that the stock is a buy on declines and not a buy at current levels of 76-77. If the stock does decline to around 66-67, then yes, the long term pattern is unfolding in a very positive manner. So presently, we would buy the stock on declines not at current levels but yes, overall the pattern is very strong. The weekly and monthly charts clearly show strong upside from current levels, so you would say it is a buy on declines.

Charts, what are they saying today for Astral Poly?

Shardul Kulkarni : Presently, if you look at the charts, you see the volumes are very low on this particular stock, probably the monthly volumes are less than 20 lakh shares in the full month. So on the volume front, the volumes are not too attractive to go in and buy this particular counter but purely on the price pattern, the stock is very strong. It clearly shows a strong trend line on the lower side where the support existed around 160-165 levels, so probably someone who wants to buy into this particular counter should look at buying on dips near to around 170 levels. The stop loss for this trade should be at around 160 levels

*******************************************

Texmo Pipes & Products attracts 52% premium

Positional calls: Gujarat Gas, Polaris Software Aditya Birla Money

Technical calls: KPIT Cummins, Allahabad & ICICI Bank HDFC Sec




Src: ET, DP blog and etc

Heard on the Street

Heard on the Street


Shriram Transport planning NCD issue

These are good times for small-ticket finance and leasing companies, thanks to difference between banks’ borrowing rates and high lending rates of these firms. These firms have taken advantage of the sufficient liquidity in the banking system by borrowing at low rates and lending it to its clients at a much higher rate, say analysts.

And even if cost of borrowing from banks come down, these players usually do not pass over the benefits to loan consumers. Most leasing companies keep the rate differential steady in the range of 7 and 15%.

Seeing good lending business prospects ahead, Shriram Transport is believed to be coming out with an NCD issue over the next few weeks. While it is not known how much the company intends to raise through this issuance, distributors expect the yield on the NCD issue would be in the range of 9- 10% per annum. Shares of Shriram Transport Finance Company ended 5% higher at Rs 499 on the BSE.

Local FIs, brokers stop bulk purchases

Domestic institutions and top brokerages that run proprietary books are likely to reduce their participation in the market to account their books for the fiscal ending March 31.

Market sources say, top brokers, who have sizeable proprietary books, have already stopped making bulk purchases in the market. Brokers say that most of the proprietory books and institutional funds are said to be in no mood to invest in the markets also that valuations are turning costlier by the day.

Proprietary books constitute approximately 30% of the total derivative volume, according to industry estimates.

Punters make a dash for Pricol for auto part play

Das board instruments major, Premier Instruments and Controls (Pricol) is said to be back on the radar of some savvy traders, on the auto component play. The share which has been trading between Rs 23-Rs 25 band in the recent past is said to be witnessing informed buying at lower levels.

Analysts maintain the company is a turnaround story and is gaining traction in a segment which has little competition. Word on the street is that the company is looking for fund infusion to retire some of its debt on books.

Whether the company would look to do this through the existing joint venture route or is in talks with new players could not be confirmed. Pricol shares fell 3% to close at Rs 23.90 on Tuesday.

(Contributed by Shailesh Menon, Apurv Gupta & Deeptha Rajkumar)


******************************************
Top 5 picks | Mid term picks |


More Satyams in a new Telengana?

********************************************

GE Shipping

India Income Tax Slabs and Savings

• Asian stocks flat in early trade
• Crude ends little lower
• Jubilant Foodworks
• Bank of India
• Hero Honda
• Sun TV
• Allahabad Bank
• Reliance Industries Limited
• Shoppers Stop
• Hindustan Unilever
• Telecom Sector
• Pantaloon Retail
• India Equity Strategy - March 10 2010
• Pradip Overseas IPO Note
• State Bank of India

*******************************************
Src: ET and DP blog

Heard on the Street

Heard on the Street



Women’s Bill stand-off may hit Finance Bill

The events unfolding around Women’s Bill have given rise to fears of a deep-market correction among institutional investors.

Even if Mulayam Singh-led Samajwadi Party (SP) and the Lalu Yadav-led Rashtriya Janata Dal (JD) were to oppose the Bill, the government will be able to get it passed with BJP’s support. However, things would be difficult when the government comes up with the Finance Bill, which is up next in the Parliament proceedings’ list.

The government will find it very difficult to pass the Finance Bill without SP’s or RJD’s support. “A couple of defections from the UPA will force the government to seek a confidence vote from members. This will dampen the sentiment of the market. In such a situation, the market is likely to slip into a deep correction mode,” an institutional dealer said.

Block deal in Nifty April puts raises eyebrows

The huge build-up of positions in Nifty’s 4800 April puts last week, when the index was trading around the 5100-mark, has intrigued market participants. The position is stoking curiosity in the market, as almost 13-14 lakh units out of the existing 19.65 lakh units of open interest were built up in a single deal.

Market participants are anxious to know the intention behind the purchase of this contract. If the purchase is part of a volatility trade, the market participants would be relieved, but, if it is based on a directional view, then they have something to worry about.

According to market grapevine, the buyer of this contract is the US-based Golden Socks, and that the trade is part of a volatility strategy.

Fund managers spoilt for choice

It was a hectic day for fund managers with several blocks of shares to choose from. In addition to Daimler Chrysler’s offer for sale of Tata Motors shares, India Cement and battery maker Exide Industries were looking to raise funds through qualified institutional placements (QIPs).

India Cement is looking to raise around $48 million at a floor price of Rs 120.2, and an option to increase the issue size to $75 million. It is learnt that key investors in India Cement include Halbis, Bajaj Allianz and Templeton.

Exide Industries which is looking to raise around $110 million at Rs 108 has been subscribed almost three times. Key investors in Exide were Jupiter, which applied for three million shares, Kotak Mutual Fund (75 lakh shares) and Mirae and India Capital (20 lakh shares each). SBI Life and Reliance Life are learnt to have applied for shares worth Rs 80-100 crore, while Amansa is said to have applied for approximately shares worth Rs 50-60 crore.

(Contributed by Shailesh Menon, Nishanth Vasudevan & Apurv Gupta)


****************************************

• Top 5 picks of the day
• Mid-term picks of the day

Our plan superior to RIL bid: Lyondell

Govt looks to cut stake to let SBI hit D-Street

Infosys Technologies

Aries Agro

India Real Estate - Service Tax

JSW Steel

Daily News Roundup - March 9 2010

No Oscar performance here!

Escorts

Daily Newsletter - March 9 2010

Balkrishna Industries

India Strategy Report - March 8 2010

DQ Entertainment IPO Note

Src: ET and DP blog and Etc