Inflation figures stood at 4.07 % at the end of this week compared with 4.11% last week.
The yield on the 10-year G – Sec has remained flat at 6.93%.
Crude oil price stood at US$95.5 per barrel by the end of the week. Over the week crude oil prices
hovering around US$92.78 - 95.5 per barrel.
Rs per US$ exchange rate closed at 39.67 by the end of the week. Exchange rate Rs/US$ continued to
trade around Rs.39.60to 39.74.
Saturday, February 16, 2008
Monday, February 11, 2008
Market Commentary 11/02/2008
Sensex tanks 834 points
Huge selling pressure was witnessed across the counters today as investors fretted over the dismal debut of Reliance Power. Weak global cues, too, weighed on bourses.
After a sharp slump, the market had witnessed recovery from lower level in mid-afternoon trade after State Bank of India, India's biggest commercial bank announced a cut in price lending rate by 25 basis points. However, the recovery proved short-lived and the market plunged again in late trade.
Reliance Energy plummeted. All the sectoral indices on BSE, barring IT index, were in the red. 26 out of 30 stocks from the Sensex pack were in the red. The market breadth was poor.
European markets, which opened after Indian markets, were subdued. Asian markets, which opened before Indian markets, were trading lower.
The 30-share BSE Sensex fell 833.98 points or 4.78% at 16,630.91. Sensex shed 1007.15 points at the day's low of 16,457.74, hit in afternoon trade
Huge selling pressure was witnessed across the counters today as investors fretted over the dismal debut of Reliance Power. Weak global cues, too, weighed on bourses.
After a sharp slump, the market had witnessed recovery from lower level in mid-afternoon trade after State Bank of India, India's biggest commercial bank announced a cut in price lending rate by 25 basis points. However, the recovery proved short-lived and the market plunged again in late trade.
Reliance Energy plummeted. All the sectoral indices on BSE, barring IT index, were in the red. 26 out of 30 stocks from the Sensex pack were in the red. The market breadth was poor.
European markets, which opened after Indian markets, were subdued. Asian markets, which opened before Indian markets, were trading lower.
The 30-share BSE Sensex fell 833.98 points or 4.78% at 16,630.91. Sensex shed 1007.15 points at the day's low of 16,457.74, hit in afternoon trade
Reliance Power Crashes on Debut
Reliance Power Ltd., which raised $3 billion in India's biggest initial public offering, fell as much as 14 percent on debut as a global equities sell-off dried up appetite for new share offerings.
If you look at Reliance Power, I would say valuations were just too rich,'' said P. Phani Sekhar, who manages $25 million at Angel Broking Ltd. ``The valuations have gone beyond themselves. This should have been the valuation five years later.''
Ambani, who will use the money to fund his $28 billion plan to build capacity, became the second-richest man in India after his Reliance Energy, India's second-biggest utility by market value, quadrupled in value last year.
If you look at Reliance Power, I would say valuations were just too rich,'' said P. Phani Sekhar, who manages $25 million at Angel Broking Ltd. ``The valuations have gone beyond themselves. This should have been the valuation five years later.''
Ambani, who will use the money to fund his $28 billion plan to build capacity, became the second-richest man in India after his Reliance Energy, India's second-biggest utility by market value, quadrupled in value last year.
Govt may consider FDI in specific retail sectors: Kamal Nath
PTI
New Delhi: The government may allow Foreign Direct Investment for specific sectors such as electronic and sports goods in retail if an expert study going into the issue foresees no impact on the neighbourhood mom and pop stores.
“We are expecting the ICRIER report on retail by the end of February. Certainly, we can be more flexible in areas of retail like electronics and sports goods. But, I want to see the whole report and make sure what I believe is correct and is backed by a report,” said Kamal Nath, Commerce and Industry Minister.
Nath said he had commissioned the Indian Council of Research in International Economic Relations (ICRIER) to come out with a study on retail to understand the impact of big retail on the small shops.
“Until I have the ICRIER report, I cannot do (open) retail. I have got to ensure these basic things. The point is that the neighbourhood store should not be hit,” he said, adding that the retail has to be seen in a totally India- specific context and not in a general sense.
“Retail in India is not like retail in Malaysia or Thailand,” he said.
However, opening sectors like electronics, sports goods, pharmacy and confectionery to FDI would not have an impact on the neighbourhood stores but would instead drive the Indian industry, Nath said.
Nath said the country’s ”prime concern is that our small retailers are not dislocated. ...I want to find a job for the sons and daughters, nephews and nieces,“ and added that FDI in specific sectors would create additional jobs.
He said said an international sports goods brand entering India would not be competing with a kirana store, since that is a different type of retail.
Barring defence equipment, retail and the financial sector, FDI norms for all other key sectors have been liberalised, he said.
The government liberalised on January 30 FDI norms in areas such as civil aviation, petroleum refining, credit information companies, industrial parks and commodity exchanges. However, retail was kept out of the FDI policy review since there were concerns that opening the sector would adversely impact the small retailers across the country.
Yahoo board to turn down Microsoft’s unsolicited $44.6 bn bid
Yahoo Inc.’s board will reject Microsoft Corp.’s $44.6 billion 30.7 bn takeover bid after concluding that the unsolicited offer undervalues the slumping Internet pioneer, a person familiar with the situation said.
The decision could provoke a showdown between two of the world’s most prominent technology companies with Internet search leader Google Inc. looming in the background. Leery of Microsoft expanding its turf on the Internet, Google already has offered to help Yahoo avert a takeover and urged antitrust regulators to take a hard look at the proposed deal.
If the world’s largest software maker wants Yahoo badly enough, Microsoft could try to override Yahoo’s board by taking its offer that was originally valued at $31 per share directly to the shareholders. Pursuing that risky route probably will require Microsoft to attempt to oust Yahoo’s current 10-member board.
The decision could provoke a showdown between two of the world’s most prominent technology companies with Internet search leader Google Inc. looming in the background. Leery of Microsoft expanding its turf on the Internet, Google already has offered to help Yahoo avert a takeover and urged antitrust regulators to take a hard look at the proposed deal.
If the world’s largest software maker wants Yahoo badly enough, Microsoft could try to override Yahoo’s board by taking its offer that was originally valued at $31 per share directly to the shareholders. Pursuing that risky route probably will require Microsoft to attempt to oust Yahoo’s current 10-member board.
V-Guard IPO Subscription open Feb 18
V-Guard IPO Subscription is scheduled to open on Monday, February 18, 2008:
V-Guard IPO price band has been fixed at Rs 80 to Rs 85 per share. V-Guard Industries Limited is one of the leading companies in India manufacturing electrical and electronic products. The registrar for the V-Guard IPO is Intime Spectrum while Anand Rathi Securities is the lead manager for the IPO. V-Guard IPO listing will be both on the NSE and the BSE. V-Guard IPO closes for subscription on Thursday, February 21, 2008
V-Guard IPO price band has been fixed at Rs 80 to Rs 85 per share. V-Guard Industries Limited is one of the leading companies in India manufacturing electrical and electronic products. The registrar for the V-Guard IPO is Intime Spectrum while Anand Rathi Securities is the lead manager for the IPO. V-Guard IPO listing will be both on the NSE and the BSE. V-Guard IPO closes for subscription on Thursday, February 21, 2008
Rural Electrification Corp IPO Details
REC IPO will opens for subscription on Monday, February 19, 2008. Rural Electrification Corp IPO might help improve the sentiments of the IPO market which is going through a bad phase at the moment. Rural Electrification Corporation IPO price band has been fixed at Rs. Rs. 90 to Rs. 105 per share. With another recent PSU power sector IPO, Power Grid IPO, providing excellent returns for investors, the REC IPO is likely to get a good response from investors. The government of India will dilute about 19% stake in Rural Electrification Corporation (REC) through the IPO. At present 100% stake of REC is owned by the government. Rural Electrification Corporation is a mini ratna company. REC IPO Subscription closes on Friday, February 22, 2008.
SVEC Constructions IPO Price Band revised
SVEC Constructions IPO seems to be the IPO next in line to get victimised due to poor market sentiments. The IPO failed to subscribe even by 50% with the institutional investors showing a thumbs down. Institutional investors category has not even been subscribed by 1%. As of now there seems to be only one bid made in this category by a Domestic Financial Institution. Clear signs that the SVEC Constructions IPO might get cancelled as well. SVEC Constructions IPO Price Band has been lowered from Rs. 85 to Rs. 95 to Rs. 80 to Rs. 90 per share.
Emaar MGF IPO / Wockhardt IPO cancelled
Emaar MGF IPO Subscription as well as Wockhardt IPO Subscription have been cancelled. The reason for the IPO subscription being revoked, even after futile attempts to make the IPO attractive by reducing the price band, is two pronged. The most important reason is that the IPO market seemed sub dued due to the stock market crash in almost all major world markets affecting the sentiment of investors in India. This is made evident from the fact that even the Reliance Power IPO received a large number of stop payments after the IPO closed for subscription. The second reason for the Emaar MGF IPO Subscription and Wockhardt IPO failing was that promoters and lead managers had priced the IPO issues very aggressively since the IPO market in India was looking great until the time both these IPO’s opened for subscription. A fall-off due to the twin IPO failures would be the Reliance Power IPO listing which is likely to provide much lower listing gains than anticipated before. This is evident from the grey market premium of Reliance Power IPO which has been continuously going southwards for the past week or so. Emaar MGF IPO refund and Wockhardt IPO refund will be made by the fourth week of February 2008.
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