Mukesh Ambani ranked 5th best CEO in the world

Mukesh Ambani ranked 5th best CEO in the world

NEW DELHI: Mukesh Ambani, who heads India's most valuable company Reliance Industries, has been ranked among top five best performing CEOs in the world by the prestigious Harvard Business Review.

Ambani, the only Indian to feature among top 50 CEOs, is in the same league as Steve Jobs of Apple, Yun Jong-Yong of Samsung Electronics, Russian energy firm Gazprom's Alexey Miller and John Chambers of Cisco Systems.

He is also ranked number two among the top 10 emerging market CEOs with Miller at the top.

K V Kamath of ICICI Bank is the other Indian in the list of Top 10 Emerging Market CEOs. He is ranked at number 9.

The Harvard Business Review said it ranked CEOs of large public traded companies in a study conducted over 2000 CEOs worldwide. The entire group represented 48 nationalities and companies based in 33 countries.

It put Ambani in the list of "up-through-the-ranks leaders" along with the Samsung boss.

"Among the up-through-the-ranks leaders on our list are Yun Jong-Yong, who joined Samsung straight out of college and worked there 30 years before becoming CEO, and Mukesh Ambani, who joined RIL in 1981, when it was still a textile company run by his father. These CEOs may not all be household names, but here's an objective look at who delivered the top results over the long term," HBR said, ranking Steve Jobs

as the top CEO in the world.

Jobs, it said, delivered a whopping 3,188 per cent industry-adjusted return (34 per cent compounded annually) after he rejoined Apple as CEO in 1997, when the company was in dire strait.

From that time until the end of September 2009, Apple's market value increased by USD 150 billion.

He was followed by Yun Jong-Yong, who ran South Korea's Samsung Electronics from 1996 to 2008. "Yun is an example of a leader who has stayed out of the limelight. During his tenure he capably transformed Samsung from a maker of memory chips and me-too products into an innovator selling digital products such as leading-edge cell phones."

Miller was number 3 followed by Chambers. HBR said none of the top three CEOs had a MBA. Ambani and Chambers were the only two on the top five to hold degrees in business administration

.

"CEOs who were promoted from inside the company tended to have stronger performance than those brought in from the outside," said HBR.

mOre @ Mukesh Ambani ranked 5th best CEO in the world

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India-origin Ayer among top 12 CEO exits in 2009: Forbes

Reliance biggest wealth creator in FY09, Unitech fastest


Italian honour for Ratan Tata




Src: Ecoomictimes

Heard on the street

Heard on the street


Rain Commodities on a high as FIs turn bullish

Shares

of Rain Commodities, one of the largest producers of calcined petroleum coke (CPC), have been on an upward journey despite a downtrend in the broader market in the past few weeks. Market sources say institutional investors have been bullish on the stock with a leading mutual fund acquiring sizeable stake through the open-market route recently.

Analysts expect CPC demand to get a boost amid commissioning of many large aluminium capacities in the next few years. Rain Commodities also manufacturers cement which is marketed under the brand ‘Priya Cement’ in the South. Last week, Reliance Mutual Fund bought a 4.5% equity, raising its stake to 9.1% in the company.

The growing institutional interest in the counter is also reflected in the sharp rise in the share price. The stock climbed 9% to Rs 234.8 in a flat market on Thursday, recording a 39% jump in the past one month.

Overseas fund managers welcome early trade

Foreign fund managers tracking India out of Singapore and Hong Kong are happy that trade timings have been advanced rather than extended, while domestic fund managers wish that it would have been the other way round. These money managers

start their day as early as 7 am (Hong Kong/Singapore time).

By the time those markets close, there is about two-and-a-half hours of trading still left in India. So, the fund managers leave for home at 6 pm (HK/Singapore). Had timings been extended beyond 3:30, these fund managers would have been delayed in office for another hour. But domestic fund managers are unhappy, considering that they will now have to begin their day earlier.

Lack of clarity on RIL’s Lyondell bid drags down

Shares of Reliance Industries drifted lower on Thursday, shedding 1.2% over its previous close to end the day at Rs 1,034, and weighing down the main indices. The market is awaiting whether RIL will make a financial

bid for Dutch petrochemical firm LyondellBasell.

Market participants say officials from RIL’s investor relations team had met up with fund managers on Tuesday, where it was indicated that the bidding process could be a long-drawn affair, and that it would bid “reasonably” and not “aggressively”.

(Contributed by Vijay Gurav & Santosh Nair)


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India Financials

Wealth Creation Study

Src: Economictimes, DP Blog

Know The Personalities: C.K.Prahalad, Nandan Nilekani

C. K. Prahalad

From Wikipedia, the free encyclopedia

(Redirected from Prahalad)

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C. K. Prahalad
Born	1941[1]
Nationality	Indian
Alma mater	University of Madras Harvard University
Occupation	Professor
Religious beliefs	Hindu
Website www.ckprahalad.com/

Coimbatore Krishnarao Prahalad (pronounced as: Pra-huh-laadh) (b. 1941^[1], Coimbatore, Tamil Nadu, India^[2]) is an Indian entrepreneur, consultant, and management expert. Paul and Ruth McCracken Distinguished University Professor of Corporate Strategy at the Ross School of Business of the University of Michigan.

He is one of the recipients of Pravasi Bharatiya Sammaan awards in 2009^[3], and was conferred the Padma Bhushan, an Indian civilian award, the same year. In 2009 he was named the world's most influential business thinker on The Thinkers 50 list, published by The Times ^[4].

Contents [hide] 1 Personal life and education 2 Career 2.1 Writings, interests, and business experience 3 See also 4 References 5 External links

[edit] Personal life and education

Prahalad is one of nine children. His father was a well-known Sanskrit scholar and judge in Chennai. When he was 19, Prahalad was recruited by the manager of the local Union Carbide battery plant after completing his B.Sc degree at the University of Madras. He worked there for four years. Prahalad calls his Union Carbide experience a major inflection point in his life.

At Harvard Business School,Prahalad wrote a doctoral thesis on multinational management in just two and a half years, graduating with a D.B.A. degree in 1975.^[5]

He then returned to India, where he taught at the IIM Ahmedabad. He returned to the United States, as an assistant professor at the University of Michigan.

[edit] Career

[edit] Writings, interests, and business experience

C. K. Prahalad is the author of a number of well known works in corporate strategy including The Core Competence of the Corporation (Harvard Business Review, May-June, 1990). He has authored several international bestsellers, including: "Competing for the Future"(with Gary Hamel), 1994, "The Future of Competition," (with Venkat Ramaswamy), 2004 and "The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits," Wharton School Publishing, 2004. His new book with co-author M. S. Krishnan is called The New Age of Innovation.

He was co-founder and became CEO of Praja Inc ("Praja" from a Sanskrit word "Praja" which means "citizen" or "common people"). The goals of the company ranged from allowing common people to access information without restriction (this theme is related to the "bottom of pyramid" or BOP philosophy) to providing a testbed for various management ideas. The company eventually laid off 1/3rd of its workforce and was sold to TIBCO. He is still on the board of TiE, The Indus Entrepreneurs.

Prahalad has been among top ten management thinkers in every major survey for over ten years. Business Week said of him: "a brilliant teacher at the University of Michigan, he may well be the most influential thinker on business strategy today." He is a member of the Blue Ribbon Commission of the United Nations on Private Sector and Development. He is the first recipient of the Lal Bahadur Shastri Award for contributions to Management and Public Administration presented by the President of India in 2000.

[edit] See also

• Bottom of the Pyramid
• Core competency
• Co-creation

[edit] References

1. ^ ^{a b} Notable Alumni: Dr. C K Prahalad. IIMA USA Chapter.
2. ^ Biography: CK PRAHALAD. Thinkers50.
3. ^ http://specials.rediff.com/news/2009/jan/09slide1-pravasi-bharatiya-divas-awards-ceremony.htm
4. ^ http://news.therecord.com/Business/article/613813
5. ^ Professor C.K. Prahalad

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



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Nandan Nilekani

Nandan Nilekani

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Jump to: navigation, search

Nandan M Nilekani
Born	2 June 1955 (1955-06-02) (age 54) Bangalore, Karnataka, India
Occupation	Chairman of Unique Identification Authority of India (UIDAI)
Salary	$203,545 USD (net compensation in 2007)[1]
Net worth	▲ USD $1.3 Billion

Nandan Nilekani (Konkani/Kannada: ನಂದನ ನಿಲೇಕಣಿ) (born June 2, 1955) is an Indian entrepreneur and businessman. He currently serves as the Chairman of the new Unique Identification Authority of India (UIDAI), after a successful career at Infosys Technologies Ltd. He was the inspiration behind the book, The World is Flat.^[2]

Contents [hide] 1 Early life 2 Career 3 Personal life 4 Honours and awards 5 Bibliography 6 References 7 External links

[edit] Early life

Nandan Nilekani was born in Bangalore, Karnataka, as the younger son of Durga and Mohan Rao Nilekani. His father worked as a General Manager of Mysore and Minerva Mills. His father, subscribed to the Fabian Socialist ideals, had an influence on Nandan during his early years. He has a older brother, Vijay, who works in the Nuclear Energy Institute.^[3]

He studied at Bishop Cotton Boys School Bangalore, and then at St. Joseph's High School Dharwad, and later in IIT, Bombay where he graduated with a B.Tech in Electrical Engineering in 1978. ^[4] His early years were marked by his father’s job transfers and re-locations. He spent the first twelve years at Bangalore, where he studied at the Bishop Cotton Boys School. He then moved in with his uncle’s family in Dharwad, after his father had been transferred.

[edit] Career

Nandan Nilekani, after graduating from IIT Bombay in 1978, he joined Mumbai-based Patni Computer Systems where he was interviewed by N.R. Narayana Murthy. Three years later, in 1981, Murthy walked out of Patni following a dis-agreement with one of the Patni brothers. His entire division walked out with him. The defectors decided to start their own company, Infosys.

Nilekani became the Chief Executive Officer of Infosys in March 2002, taking over from Murthy. Nilekani served as CEO and MD of the company from March 2002 to April 2007, when he relinquished his position to his colleague Kris Gopalakrishnan, becoming Co-Chairman. He left Infosys on 9 July 2009 to serve as the chairperson of the Unique Identification Authority of India, in the rank of a cabinet minister under invitation from the Prime Minister of India, Dr. Manmohan Singh.

He co-founded India’s National Association of Software and Service Companies (NASSCOM) as well as the Bangalore Chapter of The IndUS Entrepreneurs (TiE).

He appeared on The Daily Show with Jon Stewart on March 18, 2009^[5] to promote his book "Imagining India." He has been a speaker at the prestigious TED conference where he talked about his ideas for India's future.

He has an estimated net worth of the Indian rupee equivalent of US$1.3 billion.^[6] In 2009, Time magazine placed Nilekani in the Time 100 list of 'World's Most Influential People' ^[7]

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

Src: Wikipedia

New trading time to be effective from January 4, 2010

New trading time to be effective from January 4, 2010

MUMBAI: Reacting to opposition from the brokering fraternity, both the Bombay Stock Exchange and National Stock Exchange have postponed the

High-flying stocks Top 5 picks Mid-term picks

implementation of new trade timings to January 4, 2010, from the earlier decided December 18, 2009.

The bourses will open for trade at 9:00 am instead of the usual 9:55 am and will close at the usual time of 3:30 pm.

The BSE, on Wednesday, announced advancement of trade timing to 9:45 am. Reacting to this unilateral decision, NSE said it would start trade at 9:00 am.

Many brokers were worried about the operational aspects, in addition to the strain that it will put on their daily routine. "Arranging for margin (funds) early on in the day will be a problem since banks don’t open that early,” said Nikhil Jalan of Kamal Kumar Jalan Securities. “If the exchanges are keen on extended hours, why not ensure that other systems too are in place. And by extending trade timings by an hour, you can’t really snatch volumes from the Singapore exchange, because that market will still open ahead of us and people wanting to trade there will continue to do so,” he said.

Some of the brokers who spoke to ET, on condition of anonymity, said that the regulator/exchanges should have conducted a proper poll before increasing the trading timings.

BSE's move to steal a march on NSE provoked a much stronger reaction than what Asia’s oldest bourse had expected. The BSE was learnt to have been opposed to the idea of extended trading hours all along. Yet, it went ahead and advanced trade timing by 10 minutes, in the hope that it would improve liquidity.

Incidentally, surveys conducted by the Association of National Exchange Members of India (ANMI) and the BSE Brokers Forum a few weeks ago, showed that the majority of brokers were opposed to the extension of trading hours.

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	Picks for an aggressive stock portfolio HDFC Sec
	Picks for a conservative stock portfolio HDFC Sec

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Src: Economictimes, Valuenotes

BSE,NSE to open trading window at 9 from Friday

BSE,NSE to open trading window at 9 from Friday

MUMBAI: What started as a battle of egos between the country’s top two stock exchanges will end up permanently altering the lifestyles of those Tips to pick potential stocks Tips for range-bound markets Risk while investing in midcaps Follow 20-20 rule for better returns even remotely connected with the share market. It’s not just stock traders and fund managers who will have to begin the day early, but life will change for bank tellers, television anchors and the tea boy on Dalal Street as well. Reacting sharply to the Bombay Stock Exchange’s (BSE) move to bring forward trading hours by 10 minutes, the National Stock Exchange (NSE), on Wednesday, said it was advancing its timing by 55 minutes, to 9 am from Friday. The closing timing will remain the same at 3:30 pm. Left with no option, BSE said that it, too, will begin trading hours at 9 am from Friday. “We had extensive consultations with market participants...and the feedback was that now that BSE had changed its timings...so it was inevitable for NSE to change it also...so that there is no uncertainty created in the market,” Ravi Narain, managing director & CEO, NSE, told ET NOW. Also Read → BSE advances trading time on block deal counter → BSE on options hunt for fortune change → BSE in for an early bird advantage over NSE → Integrity a must in the stock market, says regulator No exchange can afford to remain closed while the other is open, as the exchange that is open will set the benchmark prices. Also, brokers on the exchange that is closed at that time will not have a chance to react. The dual moves sparked angry reactions from broking firms, especially the smaller firms. “This is absolute nonsense and will inconvenience those employed in the industry. We, too, have our personal lives. This is not some school where timings can be changed arbitrarily, this is business,” said Suresh Mehta, chairman and managing director of Dhyan Stock Broking.

The original advocates of early market hours were those who felt that foreign fund managers used the shallow Singapore market to hammer the

Tips to pick potential stocks Tips for range-bound markets Risk while investing in midcaps Follow 20-20 rule for better returns

Nifty by short-selling Nifty futures there. However, this problem may still persist, as Singapore will open well ahead of the Indian market, despite the advanced timings.

But many are worried about the operational aspects, in addition to the strain that it will put on their daily routine. “Arranging for margin (funds) early on in the day will be a problem since banks don’t open that early,” said Nikhil Jalan of Kamal Kumar Jalan Securities. “If the exchanges are keen on extended hours, why not ensure that other systems too are in place.

And by extending trade timings by an hour, you can’t really snatch volumes from the Singapore exchange, because that market will still open ahead of us and people wanting to trade there will continue to do so,” he said. Some of the brokers who spoke to ET, on condition of anonymity, said that the regulator/exchanges should have conducted a proper poll before increasing the trading timings.

BSE’s move to steal a march on NSE provoked a much stronger reaction than what Asia’s oldest bourse had expected. The BSE was learnt to have been opposed to the idea of extended trading hours all along. Yet, it went ahead and advanced trade timing by 10 minutes, in the hope that it would improve liquidity. Incidentally, surveys conducted by the Association of National Exchange Members of India (ANMI) and the BSE Brokers Forum a few weeks ago, showed that the majority of brokers were opposed to the extension of trading hours.

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High-flying stocks | Top 5 picks | Mid-term picks

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Investors likely to choose US over emerging markets: Faber

Day traders shift focus to mid-caps

It may be time to start selling gold

Strong support seen at 5K for Nifty

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Heard on the street

Hostile takeover bid buzz boosts Gujarat Heavy

Shares of Sanjay Dalmia-owned soda ash manufacturer Gujarat Heavy Chemicals surged nearly 10% on reports that the company may face a hostile takeover bid by a disgruntled shareholder, Pramod Jain. Pramod Jain holds a 5% stake in GHCL and Dalmia holds around 18% stake in the company.

This will be the second attempt by Pramod Jain to corner substantial stake in a Dalmia-owned company in a month’s time. Pramod Jain has already made an open offer for 25% of Golden Tobacco (GTC) shares at Rs 101 a share which is awaiting Sebi approval. Pramod Jain’s JP Financial Services and persons acting in concert hold a 6.47% stake in GTC. Gujarat Heavy Chemicals closed the day at Rs 54.85/share on Wednesday. GHCL is expected to hold a crucial AGM on December 31, 2009.

Of Dalmia’s a 18.26% stake in GHCL, 9% is already pledged with Indiabulls against an on-demand loan. The shares pledged with Indiabulls, however, may not be a threat after the two parties agreed to an out-of-court-settlement

on December 14 over Dalmia’s default to a Indiabulls loan of Rs 225 crore.

Responding to an email query by ET NOW, Sanjay Dalmia said, “We, the promoters along with our friends, have comfortable levels of shareholding.” Sanjay Dalmia has a financial obligation of close to Rs 250 crore towards the settlement of dispute with Indiabulls Financial Services. Pramod Jain had said that he made the open offer for GTC shares to stop promoters from transferring the GTC-owned land in Mumbai as part of the payment to Indiabulls.

MFs’ asset base shrinks as cos redeem debt funds

Mutual funds are realising their worst fears with companies redeeming their investments from debt mutual fund schemes to make advance tax payments. According to fund industry sources, debt schemes — as a category alone — could see outflows to the tune of thousands of crores in December. Fund houses like ‘Bull-head MF’ ‘Real Care MF’, ‘Icy-Icy MF’, ‘Moon Life MF’ and ‘Reliable MF’ are said to have lost sizeable chunks of assets from their debt portfolios.

Advance tax payments by companies have risen over 30% in the third quarter of current fiscal, market experts opine. Prominent institutional investors

like banks, manufacturing and service-related businesses have all paid higher advance tax than previous quarters. Come January, fund houses will compete with each other to coerce corporate treasury heads to reinvest in their debt schemes, in their bid to increase asset bases.

(Contributed by Nisha Poddar & Shailesh Menon)

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Strategy - Dec 17 2009

Morning Note - Dec 17 2009

Natco Pharma

Jain Irrigation Systems


Src: Economictimes, DP BLog

Cos yielding better returns

Cos yielding better returns


Until recently, investment advisors were apprehensive of investing money in companies with low free-float (non-promoter holding). However, model investment portfolios of investors are changing structurally, as companies with high promoter holdings are yielding better than companies with low promoter holding and government undertakings.

In the past three years, A-group companies (with high promoter holding) like Sesa Goa, Shree Renuka Sugar, Jindal Steel, Bhushan Steel, Shriram Transport, Welspun Gujarat have returned 180-845%. Index stocks and sector frontliners, where promoters hold equity stake between 30% and 80%, like Tata Steel, TCS, M&M, Wipro, Bharti Airtel, Hindalco, Grasim Industries, Tata Motors and ACC have averaged a 20% compunded return over the past three years. Read Full Article

Click next to see companies that are yielding better returns.

JSW Steel Ltd 16 Dec 2009, 0232 hrs IST

Print Save EMail Write to Editor

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Promoter (%): 45.02 % change in 5 years: 5528.77 % change in 3 years: 146.30

Jai Corp Ltd 16 Dec 2009, 0232 hrs IST

Print Save EMail Write to Editor

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Promoter (%): 72.99 % change in 5 years: 3578.77 % change in 3 years: 46.45

Jindal Steel & Power Ltd 16 Dec 2009, 0232 hrs IST

Print Save EMail Write to Editor

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Promoter (%): 58.58 % change in 5 years: 2281.72 % change in 3 years: 843.05

MOre @ Cos yielding better returns

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Heard on the Street

MFs see value in Ambuja Cements on demand rise
After underperforming the broader market during the recent bull run, cement pivotal Ambuja Cements shares have been seeing good action despite generally sluggish market conditions in the past few weeks. According to market sources, institutional investors, mostly local mutual funds, have been accumulating the stock on easing of concerns over excess capacity in the industry, cement prices and margins.

Sentiment has improved on hopes of a rise in cement demand amid rapid infrastructure and housing development in the country, according to analysts. Last month, Genesis Asset Managers, a foreign fund, bought a few lakh shares to raise its stake beyond 5% of the company’s equity capital. Ambuja Cements shares have risen 13% against 0.2% rise in the Sensex in a month.

Flurry of bulk deals lift Thinksoft
Despite sagging performance of high-profile issues post-listing, investors in some mid-, and small-sized IPO continue to receive outsized returns. For instance, Thinksoft Global Services has more than doubled over its issue price of Rs 125. The stock closed at Rs 285 on Tuesday, up 2% from previous close. According to brokers, the company, which is into the niche segment of software testing services, has been attracting buyers in anticipation of some corporate development.

The interest can be gauged by the flurry of bulk deals in the past couple of weeks. Asenior company official, however, declined to comment. Similarly, others like Jindal Cotex and Astec Lifesciences have also offered them much better returns than many other relatively large-sized issues, currently languishing below their respective offer prices.

Investors bet on strong earnings of sugar firms
Even as the broad market is struggling for direction, some of the savvy players are busy loading up on sugar stocks. One of the closely-watched developments is whether the Balrampur Chini management will eventually capitulate to either Bajaj Hindusthan or Shree Renuka Sugars. Traders tracking the counter say a deal is unlikely before 3-4 months at least, as it is the peak season for the sector, and that influences valuations. Even otherwise, traders are betting that strong earnings for the current quarter as well as the next will keep shares of sugar companies in demand. Shares of Shree Renuka rose 3.4% to close at Rs 215.60. Bajaj Hindusthan rose 1%.

Contributed by Vijay Gurav, Apurv Gupta & Santosh Nair

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DB Corp Oversubscription Allotment Details

Heritage Foods

Reliance Communications

Bank of Baroda, Property Sector

Geodesic Ltd

Src: Economictimes, DP Blog

Heard on the Street

Heard on the Street

Domestic institutions lap up Mangalam Cement
Rajasthan-based Mangalam Cement is said to have caught the fancy of a few domestic institutions of late. The stock was the star performer on Monday, rising 9% to close at Rs 138, despite the overall trend being sluggish. With Monday’s gains, the stock has climbed around 20% over the past one month. Buzz is that a private insurance company is leading the pack of domestic buyers. This insurer is said to have mopped up close to 4%. Analysts tracking say Mangalam is one of the safer bets among small-cap cement stocks.

Short-sellers in JSW Energy may lose
Traders, who have gone short on the JSW Energy issue in the grey market, could find themselves in a spot of bother. Talk is that the issue is likely to be priced closer to the lower end of the price band of Rs 100-115. The issue, which has been subscribed 1.7 times, received a moderate response from investors. The company may have decided against pricing the issue aggressively.

A leading investment bank, which failed to find a place in the syndicate of lead managers to the issue, is said to have heavily short sold through grey market punters. The punters pushed the price down to a discount of around Rs 4 to the top end of the price band. Now, that the issue is likely to be priced even lower than that, the punters could be in for a nasty surprise. But they may still end up making a tidy profit, if the stock lists at a discount to the issue price.

Market sees delay in SME trading platform
The launch of the trading platform for SMEs by existing bourses is likely to be delayed, according to market participants, pointing to the statement made by finance minister Pranab Mukherjee on Monday in Rajya Sabha. “The need and criteria of listing at SME exchange/platform are different from those for listing on BSE and NSE. Therefore, it is felt that separate SME exchange/platform of existing stock exchanges are required,” said Pranab Mukherjee in Rajya Sabha.


Rs 100-cr fund for investor awareness
Sebi is planning a Rs 100-crore investor awareness fund that will be used to spread awareness about mutual fund investments. Industry sources said the regulator is working out a plan to pool in money for the fund from AMCs. The regulator may advise fund houses to forego a small portion of the expense ratio they collect from investors. Expense ratio is an income for MFs, as it covers fund management fee and administrative costs.

As per Sebi regulations, a MF can charge a maximum expense of 2.5% for equity funds, 2.25% for debt funds and 1.5% for index funds

and 0.75% for fund of funds. MFs, on their part, maintain a small corpus of fund (also termed investor awareness fund) to educate investors. “Contributing for one more fund will further cripple the industry. As such, most fund houses are logging huge losses operating in the current environment,” said the CEO of a domestic fund house.

Contributed by Apurv Gupta, Santosh Nair, Reena Zachariah & Shailesh Menon


Src: Economictimes

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RIL woos Lyondell creditors as mgmt fights back

Bearish triple top at 5180

Bearish triple top at 5,180

The market trended through a narrow range during most of the week and touched a new 2009 high before sliding on Friday. The Nifty hit a high of 5,182 before dropping to close at 5,117 points for a nominal 0.2 per cent week-on-week gain.

The Sensex was also practically unchanged at 17,119 points. The Defty lost 0.5 per cent as the rupee slid.

Breadth signals were poor. Declines slightly outnumbered advances and volumes were low. FIIs were moderate buyers while domestic institutions were moderate sellers. The BSE-500 lost marginal ground and so did the BSE-Midcaps. The BankNifty and Nifty Junior lost more than the overall market while the CNXIT gained.

Outlook: The market is in a short-term downtrend and it should find support between 5,000 and 5,050 in the next couple of sessions. Most likely, it will range trade between 5,000 and 5,180. Volumes and carryover patterns are bearish but the intermediate trend still appears to be up.

Rationale: There is heavy resistance at 5,180- the market has hit that level thrice since late October and turned South each time. The intermediate trend should be up since we have seen higher lows followed by multiple-tops at 5,180. The double top of the past two peaks has bearish short-term implications. On the downside, the intermediate trend would remain bullish or neutral if the market stays above 4,806 (last low).

Counter-view: Low volumes are always a sign of lack of demand and often translate into bearishness. The next two-three weeks are unlikely to see volumes climb since this is year-ending for most FIIs, who will stay clear of the market. So, a deeper correction that shades into an intermediate downtrend is possible with 4,806 being a key pivot. On the upside, a breakout past 5,180 and close above that point would be positive but unlikely without volume expansion.

Bulls and Bears: The reaction on Friday saw selloffs in banking and real estate and other interest rate-sensitive stocks. The BankNifty lost 1.6 per cent over the week with other finance sector stocks dropping as well. PSU banks got hit harder than private sector banks. The CNXIT gained around 1.6 per cent, which was an outperformance compared to wider indices but it saw corrections by the weekend.

Engineering majors like BHEL, Greaves and ABB looked strong. So did a couple of auto sector companies like Bajaj and Bharat Forge. Cement shares looked to have the potential to buck a possible downtrend with Grasim and ACC both doing well. Sail and Jindal Steel & Power were other gainers against the trend on Friday. Quite a few big guns like HUL, Reliance Industries and L&T held their ground.

MICRO TECHNICALS

BAJAJ AUTO
Current price: Rs 1,725
Target price: Rs 1,765

The stock has hit a new high on very good volumes. It is in a new zone so target projection will have a high error factor. However, the pattern suggests that Rs 1,765 is a reasonable target. Keep a stop at Rs 1,710 and go long. Be prepared for high volatility.

THERMAX
Current price: Rs 579.75
Target price: Rs 550

The stock has broken a key support and it could continue to travel down until it hits good support in the Rs 550-555 region. Keep a stop at Rs 590 and go short. Partially cover at Rs 560. Start clearing the rest of the position between Rs 550 and Rs 555.

BERGER PAINTS
Current price: Rs 63.5
Target price: Rs 72

The stock has seen sharp volume expansion and it has completed a bullish pattern. It faces some resistance at Rs 66 but it has a target projection of about Rs 72. Keep a stop at Rs 61 and go long. Add to the position above Rs 66 and clear the position above Rs 71.

ORIENTAL BANK OF COMMERCE
Current price: Rs 264.5
Target price: Rs 245

The stock broke a key support on high volumes. It is likely to drop till around the Rs 245 level if the pattern projections are fulfilled. Keep a stop at Rs 270 and short. Partially cover at Rs 255 and hold the rest of the position with a stop loss at Rs 260.

UNITECH
Current price: Rs 86.65
Target price: Rs 75

The stock has seen the start of a correction in the last two sessions. It is poised on an important support. If it falls below Rs 84, it could slide till around Rs 75. Keep a stop at Rs 89 and short. Increase the position below Rs 85. Start booking profits below Rs 77.

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F&O OUTLOOK: Breakout may swing both ways

Analysts' corner 14-DEC-09 Crude oil prices have declined by $6.6 per barrel (or 8.3 per cent) since December 1, 2009 led by rise in crude inventories in the US, strengthening of the dollar and financial crisis in Dubai, which have increased concerns on the pace of the global economic recovery.

Markets at a glance 14-DEC-09 The RBI governor’s statement that capital inflows are manageable perked up investor sentiments.

Strangles could be lucrative 14-DEC-09 The most probable directional movement in the rest of the settlement appears to be sideways.

Bearish triple top at 5,180 14-DEC-09 The market trended through a narrow range during most of the week and touched a new 2009 high before sliding on Friday.

Keeping it simple 14-DEC-09 When price movement bothers you while you sleep and causes you dreams of paradise or nightmares, you are suffering from the real capital market crisis.

Regional advantage 14-DEC-09 A leadership position in its business, a good track-record and better growth opportunities in smaller towns augur well for DB Corp.

Seeking quality managers 14-DEC-09 K N Sivasubramanian, vice president and portfolio manager at Franklin Templeton AMC has been riding the growth wave along with the rise in the markets over the last one year.

A perfect brew 14-DEC-09 The win-win deal between United Breweries and Heineken opens up a window of growth opportunities for the duo.

Still in rough seas 14-DEC-09 Without a strong global economic recovery, the maritime sector will find it tough to overcome the demand-supply mismatch.

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Analysts' Picks: IVRCL Infra, Infy, Essar Oil, Cadila, Marico, Maruti

Top 5 picks | Mid-term picks | Top Banking stocks | About Nifty

• Morgan Stanley rates Maruti Suzuki as 'overweight'
• Motilal Oswal puts 'buy' on Marico
• CLSA puts 'buy' on Cadila Healthcare

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SKF india, Kalpataru Power

JSW Energy IPO, Godrej Properties IPO

Weekly Newsletter - Dec 14 2009

Weekly Watch - Dec 13 2009

Weekly Newsletters - Dec 13 2009

India Strategy

Kajaria Ceramics

Src: Economictimes, DP Blog, Business-Standard.com