Market Commentary-11/03/2008

Sensex regains 16,100; realty, capital goods shares rally

Local markets managed to post decent gains in choppy trade boosted by steady buying demand for index pivotals and short covering at lower level after the recent fall. Firm global markets also lifted the sentiment. The total turnover on BSE crossed Rs 7000 core. It had opened lower tracking weak US markets. European markets extended early gains. Asian markets also reversed early losses to post gains.

17 shares from the 30-member Sensex pack advanced. The market breadth was strong after initial weakness. Shares from real estate, capital goods, sugar and oil & gas rallied on fresh buying.

The 30-share BSE Sensex gained 199.43 points or 1.25% at 16,123.15. It opened slightly lower at 15,778.27 and slipped further to touch a low of 15,739.05 in early trade. At the day’s low, the Sensex lost 184.67 points. It gained 244.41 points at day’s high of 16,168.13 hit in early afternoon trade.

China's trade surplus shrinks

China's trade surplus has shrunk to roughly a third of the level in the same month a year ago.

Customs authorities in China have put the figure at US$8.56 billion dollars in February.

Economists had been expecting a weakening of export performance, due to economic woes in the US, which have made consumers less likely to but Chinese-made goods.

They have also warned that China's exports are under threat from a variety of factors, including a strengthening of the yuan, the local currency.

Market News-11/03/2008

L&T takes a hit on bad hedge call disclosure
Engineering major Larsen & Toubro’s one of its subsidiaries in West Asia may incur a loss of Rs 200 crore on commodity-hedging bets gone wrong, erasing last year's profit at that unit. L&T International FZE, a Sharjah (United Arab Emirates)-based arm of L&T, may post a loss of Rs 200 crore because it bet against a decline in prices of zinc and other commodities.
L&T has a large exposure to commodities. It has an order book of $6 billion of which 30 to 40 per cent relates to the commodities. However the company has maintained that it has currently reduced exposure to a considerable extent. Further it has maintained its guidance on order booking, sales and operating margins for the year with an emphasis on improvement in the operating margins.

Rupee depreciates at an accelerated rate
After almost a year of sharp appreciation against major currencies, Indian rupee has actually depreciated in the last seven sessions between 27th February and 10th March 2008. During this period, Indian rupee depreciated by 6.9% against Japanese Yen, 4.7% against Euro, 3.7% against Great Britain Pounds and by 2.3% against US dollars. This has come as welcome breather for the exporters (particularly IT & textiles companies), provided they had not taken otherwise call and hedged their positions.

Government expects fall in spectrum charges
Indian telecom subscriber base grew by 28.5% in FY 2004-05, but the growth leaped to 44.4% in FY 2005-06, and to 44.9% in FY 2006-07. The growth continues, but at a decelerated pace on the higher base, at 36.8% in the ten months ended January 2008. The spectrum charges collected by the Government from the mobile operators were around Rs 1,957 crore in FY 2006-07, but have zoomed by over 74% on annualized basis to about Rs 2,845 crore in the ten months ended January 2008

Market Commentaries-10/03/2008

The two niche indices, BSE Sensex and S&P CNX Nifty, saw divergent trend with the later posting gains helped by spurt in non-Sensex constituents viz. Reliance Petroleum and Cairn India. But a key reason for the divergence of the two indices was a sharp fall in L&T. L&T has a much higher weightage of 7.18% in Sensex compared to the stock's 3.16% weightage in Nifty.

The market staged a solid rebound in second half after suffering a sharp fall earlier in the day as Hong Kong's Hang Seng index moved into green from red. The market had tumbled earlier in the day after a surprisingly weak US employment data on Friday, 7 March 2008, heightened fears of a US recession.

Reliance Industries staged a strong comeback. Heavyweights from the capital goods sector regained some ground after early sell-off. The market breadth, however, remained weak. 16 shares from the 30-member Sensex pack advanced.

The next trigger for the market would come from the figures of advance tax payment by corporates for the fourth installment, which falls due on 15 March 2008.

Wall Street banks making big margin calls

A rolling margin call is being made on US investment firms.

JPMorgan Chase have revealed in a report that more default notices and margin calls are likely.

JPMorgan, which sent a default notice to Thornburg Mortgage after the lender missed a $28 million margin call, said the Carlyle Group had also missed a $37 million margin call.

In the report, the banks analysts said the credit crisis that began about a year ago would most likely intensify after Friday's weak February US employment report.

The JPMorgan report included a revised bleaker forecast for subprime-related home prices.

The bank now sees prices falling 30 percent, from its prior 25 percent forecast.

Market News-10/03/2008

SBI cashes in on realty boom, to beef up Tier II capital

Rising property prices have prompted State Bank of India, the country’s largest lender, to reassess its fixed assets, including some of the palatial office buildings that have been assessed at just Re 1 since the days of the Raj. The first-time move is aimed at unlocking value and strengthening its balance sheet. About half the gains post-revaluation will be added to the bank’s capital. Sources said nearly Rs 1,800 crore would be added to tier II capital.

RIL to surrender 3 blocks in Kerala-Konkan basin
On Government deciding against granting special status to the three blocks of RIL, it has decided to surrender these blocks in the Kerala-Konkan (KK) basin. Both RIL and ONGC had sought special R&D status for their blocks in region, which would have given them five additional years for undertaking exploration and production activities

Patel Engineering sets sights on expansion overseas
Patel Engineering, a leading player in the construction of dams, hydropower and sewage projects, is aiming to ramp up its presence in export markets such as US and Africa. Towards this end, the company plans to invest nearly $100 million (about Rs 400 crore) over the next two years, in equipment and allied areas. Patel Engineering aims to earn about 25 per cent of its turnover from foreign markets over the next two years, against about 10 per cent of its Rs 1132.87 turnover earned from foreign markets in the first nine months of fiscal 2007-08. The company’s total order book at the end of the December 2007 quarter was worth nearly Rs 5,500 crore.

Job losses hit Wall St, Dow ends down 147, Nasdaq 8

U.S. stocks were hit with more bad news Friday, adding weight to the view the United States is heading for a recession.

The Labor department reported a loss of 63,000 jobs in the economy last month, far worse than expected, and well ahead of the 22,000 jobs lost in January.

At the close of trading the Dow Jones Industrials were down 146.70 points or 1.22% at 11,893.69.

The Nasdaq Composite was off only modestly, down 8.01 points or 36% at 2,212.49.

The Standard and Poor's 500 was down 10.97 points or 0.84% at 1,293.37.

The White House, confronting a falling economy, loss of confidence in financial markets, tumbling stock prices, and a collapsing dollar, was conceding an economic "slowdown," but taking issue with the term, "recession."

"This quarter's going to be a difficult quarter for the U.S. economy. We are in a low growth period in the economy," White House spokesman Tony Fratto said.

"Recession is a technical term," he said. "Regardless of what you call it, we are clearly in a period of a slowdown in economic growth."

"The question isn't what do you call it, the important thing is what are you doing about it? And we have been aggressively dealing with the slowdown with the stimulus package," the White House spokesman said.

Meantime the global equity market gloom continued with London's FTSE 100 losing another 1.15% Friday. The German DAX closed 1.17% lighter, and the Swiss SMI 1.32%. The Paris-based CAC 40 fell 1.26%.

In Asia, Japan's Nikkei 225 was down 3.27%. The Shanghai Composite lost 1.37%. The Australian All Ordinaries was down 2.95%. The Hong Kong Hang Seng shed 3.60%, while the Indian bourse, the BSE 30 fell 3.42%.

The U.S. dollar fell sharply in European trading breaking through crucial levels in European currencies and the Japanese yen.

Around the close in New York the rout had stabilized. The euro was quoted at 1.5346, the yen at 102.80, and the British pound at 2.0143. The Swiss franc was changing hands at 1.0252. The Australian dollar fell to .9277, and the Canadian dollar to .9892.

Market Commentaries-08/03/2008

Sensex at 6-month closing low

A surge in inflation, weak global cues and political concerns dampened the investor sentiments today as share prices declined sharply. All the sectoral indices on BSE were in the red. Reliance Energy was the biggest loser from the Sensex pack. Banking stocks tumbled. European markets, which opened after Indian market, were weak.

The 30-share BSE Sensex plunged 566.56 points or 3.42% at 15,975.52, its lowest closing since 18 September 2007. The index had shaved off 852.16 points at the session’s low of 15,689.92, hit in afternoon trade.

The broader CNX S&P Nifty was down 149.80 points or 3.04% at 4771.60.

Market News-07/03/2008

Steel prices hiked by 10%
Steel producers have pushed up prices yet again by almost 10% — despite the government’s call against price hikes. Integrated steel makers increased the price of benchmark hot rolled coils (HR coils) between Rs 1,500 per tonne and Rs 3,500 per tonne (5%-10%) on account of rising iron ore, coking coal and energy prices. The hike would take the domestic HR prices to over Rs 33,000 per tonne.
KEC to acquire US power firm
The RPG group-promoted KEC International, one of the largest power sector erection, procurement and construction (EPC) majors in the world, will soon acquire a mid-sized power sector EPC player in the US. The company has identified a few targets and hopes to complete the transaction in a few months, according to Ramesh Chandak, managing director and CEO, KEC International. He added that the targeted company would be a transmission line construction
company.
BPCL may process 9.5 pct less crude in 08/09
Bharat Petroleum Corp's is likely to process 9.5 percent less crude at its two key refineries in the next fiscal year beginning April compared with this year, due to planned shutdowns. Shutdown at Kochi refinery would be to raise capacity and at Mumbai will be a maintenance shutdown. BPCL runs a 240,000-bpd refinery in Mumbai, and another 150,000-bpd refinery in Kochi in the southern state of Kerala. Its subsidiary, Numaligarh Refinery Ltd, runs a 60,000-bpd refinery in northeast India, where processing depends on crude availability.

U.S. stocks shatter, Dow loses 215 points, Nasdaq 52

Traders on Wall Street continued to sell stocks Thursday, driving the major indices to major new lows.

Adding heat to the fire was a report by the U.S. Mortgage Bankers Association released on Thursday, which showed home foreclosures at their highest level in more than twenty years.

At the close of trading the Dow Jones Industrials were down a hefty 214.60 points or 1.75% at 12,040.39.

The tech-laden Nasdaq Composite was off 52.31 points or 2.30% at 2,220.50.

The Standard and Poor's 500 was down 29.35 points or 2.20% at 1,304.35.

U.S. home foreclosures rose to record highs in the December quarter, the Mortgage Bankers Association said Thursday. The number of foreclosures was higher than at any time since 1985.

The Labor Department also released data Thursday indicating the number of workers on jobless benefits remains at a two-and-a-half year high.

The U.S. dollar meantime sold off again. The euro reached new highs Thursday. At last call it was trading at 1.5388 around the New York close.

The British pound rallied to 2.0108, while the Swiss franc climbed to a three-year-high of 1.0216.

The Japanese yen rose to 102.57, while the Australian dollar was off sharply at .9252.

The Canadian dollar was little changed at .9868.

U.S. stocks turn corner, Dow ends up 41, Nasdaq 13

Traders remained hesitant Wednesday, keeping U.S. indices on the defensive.

Stocks were mainly in the red most of the day, but turned up towards the close

The U.S. dollar meantime dived again.

At the end of trading the Dow Jones Industrials were down 41.90 points or 0.34% to 12,254.99.

The Nasdaq Composite was up 12.53 points or 0.55% at 2,272.81.

The Standard and Poor's 500 at 1,333.70 was up 6.95 points or 0.52%.

The euro rose to a new record high against the dollar at 1.5275. Around the New York close it was quoted at 1.5264.

The Swiss franc climbed to 1.0364, and sterling to 1.9910.

The Australian dollar moved up modestly to .9336, while the Canadian dollar, recovered from the Bank of Canada 50 basis points rate cut earlier this week. It was quoted at .9852.

The Japanese yen was a touch weaker at 104.04.

Foreign exchange traders have sold the already beleagured dollar off sharply, following a string of Fed rate cuts since September last year, which has seen official interest rates reduced from 5.25% to 3%. Federal Reserve Chairman Ben Bernanke has hinted rates will be cut further if conditions warrant it.

Market Commentaries- 05/03/2008

Market snaps four-day slide; Sensex garners 202 points

Snapping a four-day losing streak, the key benchmark indices surged in late trade today. Volatility was high. Index heavyweight Reliance Industries witnessed an upward momentum at the fag end of the trade. Software stocks were the flavor of the day. Banking, realty and power stocks dropped

19 out of 30 stocks from the Sensex pack were in the green. The market breadth was weak. European markets, which opened after Indian market, were in the green. Asian markets, which open before the Indian markets, were mixed.

The market remains close tomorrow, 6 March 2008 on account of Mahashivratri.

Market News 05/03/2008

Levels

16754 –16924 – 17150 􀂃 Above 16754, we have daily resistance of 16924 – 17150 -- 17515 with down gaps resistance at 17227 -- 17258. Above 17515 we have 18137.
16387– 16304 Buy area. If strong, markets will not break 16304.
If 16304 is not broken then we have a chance of crossing Tuesday’s high of 16754.
16164 – 16457 – 15332 􀂃 If 16387 is broken then we have support at 16164 Tuesday’s low
Below 16164 we have daily swing support at 16457. If 16457 is broken then we have
weekly swing support at 15332 and then we have monthly swing support at 13779

ICICI Bank takes $264-m hit on overseas credit exposure

ICICI Bank has suffered marked to market losses of $264.3 million (about Rs 1,056 crore) on account of exposure to overseas credit derivatives and investments in fixed income assets. These losses are as on January 31, 2008. Marked to market losses happen when the current market value of an asset is lower than its acquisition value, requiring the holder of the asset to make a provision equivalent to the difference.

ESAB India reports 31% rise in net profit
Esab India recorded 31% rise in net profit to Rs 13.3 crore on 12% rise in net sales to Rs 87.8 crore. Its margins have been easing sequentially from 24.8% in the quarter ended June 2007 to 22.5% in the quarter ended September 2007, which has further eased to 21.9% in the quarter ended December 2007. But they are higher by 350 basis points from 18.4% in the quarter ended December 2006. On annual basis, its margins grew by 110 basis points to 23.3% in 2007 after modest 20 basis points rise to 22.6% in 2006 over the previous year.

Nestle India Q4 net up 50%, FY07 net up 31%
Nestle India, has reported a 49.9% increase in net profits at Rs 93.6 crore for the quarter ended December 31, 2007 when compared with Rs 62.5 crore for the quarter ended December 31, 2006. Total income increased to Rs 905.3 crore from Rs 743.6 crore for the quarter under review, a growth of 21.7%.
Essar wins oil block in Vietnam
Essar Exploration & Production (EEPL), Mauritius, a subsidiary of Essar Oil, has been awarded an offshore block in Vietnam’s Song Hong basin. The block is measuring approximately 5,925 sq km. The company will start exploration soon. Exploration phase is estimated to last five years with an investment of ~ $ 60 million. Essar Oil will consolidate its upstream exploration & production activities under EEPL. This will help build a strong, fully integrated oil company with upstream, refining and downstream marketing activities.

Market Commentaries - 04/03/2008

Sensex plunges 1485 points in three days on Budget blues

The key indices drifted lower for a third consecutive session hit by Budget blues. Banking and realty stocks were worst hit in today’s trade. Auto stocks bucked the bearish trend. 19 out of 30 stocks from the Sensex pack were in the red. The market breadth was extremely weak.

European markets, which were positive in early trades, turned negative as day proceeded. Asian markets, which opened before Indian market, ended on a mixed note.

The 30-share BSE Sensex lost 337.99 points or 2.03% at 16,339.89. The Sensex lost 513.31 points at the day’s low of 16,164.57, hit in afternoon trade. The index gained 76.18 points at the day’s high of 16,754.06, hit in early trade.

The broader CNX S&P Nifty was down 88.75 points or 1.79% at 4864.25.

Market News -04/03/2008

Jain Irrigation acquires controlling stake in Switzerland based Thomas Machines S.A
Jain Irrigation Systems Ltd (JISL), through its multi generation subsidiary, has acquired controlling stake (69.75%) in Thomas Machines S.A. of Switzerland (THE) with full management and operational control. JISL has additionally entered into Shareholders Agreement with holder of the 30.25% shares of THE, with call option which can be exercised over the next 3 years.

ACC records spurt in cement dispatches on low base
ACC recorded impressive 15% rise in production to 1.69 million tonne, while dispatches grew at an accelerated 17.4% to 1.69 million tonne in February 2008. The spurt in production was partly due to low base of February 2007, when its production and dispatches were affected due to planned stoppages on account of certain technical modifications carried out at three of its plants.

Oil imports surge
India’s Oil imports have surged by 60.8% to US$ 7,711.8 million in January 2008, up from US$ 4,795.5 million in January 2007. In the ten months ended January 2008, the country’s oil imports grew by 16.5% to US$ 57,023.3 million. Non oil imports were not behind, and they too surged by 65.1% to US$ 14,792.6 million in January 2008 and by 36.1% to US$ 134,580.8 million in the ten months ended January 2008.

Market Commentary-03/03/2008

Sensex tanks 901 points in global sell-off, Budget blues

The key benchmark indices witnessed an unabated selling pressure across sectors, mirroring weakness in the global stock markets. 26 out of 30 stocks from the Sensex pack were in the red. Even the mid-and small-cap stocks tumbled, as reflected in the poor market breadth.

Asian markets, which opened before Indian markets, ended on a weak note. European markets, which opened after Indian markets, were trading lower. A global sell-off was triggered today after weak US data on Friday, 29 February 2008 and a record loss of insurer American International Group Inc fuelled worries that there are more write-downs to come.

The BSE Sensex tumbled 900.84 points or 5.12% to 16,677.88 registering its second biggest single day point loss on a closing basis. It was also Sensex’s second biggest single day fall in percentage terms. BSE Sensex’s fall of 1,408.35 points or 7.41% to 17,605.35 on 21 January 2008 is its biggest ever fall in record.

Daily News -03/02/2008

Two wheelers sales dip

The two leading bike makers in the country, Bajaj Auto and Hero Honda, have reported a dip in February sales on the back of falling demand for the entry-level models and restricted finance availability. Bajaj Auto saw a decline of 8 per cent in motorcycles sales at 158,662 units in February as against 171,780 units sold in February 2007. A de-growth of about 13 per cent in the 100cc segment has offset stable sales in the 125cc plus segment, resulting in an overall de-growth for the company.
Hero Honda had its biggest fall in monthly sales in FY08, as it slipped by more than 5 per cent at 265,431 units as against 280,515 units in the corresponding month of the previous year. The company has blamed lack of finances as the reason for diminishing growth in the two-wheeler market. Hero Honda sells 13 models in the market compared with 9 models of Bajaj Auto including scooters.
Maruti posts a meagre 0.4% growth in Feb sales
India’s largest car maker, Maruti Suzuki (MSIL) registered a paltry rise in the domestic sales at 0.4 per cent at 59,311 units in February. The company had sold 59,095 units in the same month of the previous year. The growth driving A2 segment, comprising cars such as Swift and Alto, grew by a mere 2.7 per cent during the month. The total sales in the segment stood at 44,059 units. The SX4 segment grew by 8.9 per cent at 1,958 units compared with the corresponding month of the previous year. Exports grew by a healthy 15.5 per cent at 4511 units during the reporting period.

Shipping Corporation in talks with Korea’s STX for shipbuilding JV
State-run Shipping Corp. of India Ltd (SCI), the county’s biggest shipping firm by fleet size and revenues, is in talks with South Korean shipbuilder STX Shipbuilding Co. Ltd for a joint venture even as India looks to scale up its shipbuilding capacity to tap the global shipbuilding boom.

Ruchi Soya in tech deal with US company
Edible oil and soya foods maker Ruchi Soya Industries (RSIL) is planning to expand its flagship brand Nutrela to functional foods and beverages. As part of its growth strategy, it has signed an exclusive technology licensing agreement with NutriJoy, a US-based firm with key business of commercialisation of patented research technology for functional foods and beverages.
Ruchi Soya has drawn up business plans to introduce a new product range of food enriched with vital nutritional additives and cooking oils in the premium segment. This product range will provide consumers health benefits through foods beyond basic nutrition. The health food space in India is still at a very nascent stage. Hence, we will be looking into the specific needs of the Indian consumer before going ahead with the development for the products.

GTC set to demerge realty business, list it separately

Cigarette manufacturer GTC Industries in the board meeting has granted an in-principle approval to demerge the tobacco and the real estate business into two separate entities. The de-merged entities would be listed separately on the stock exchanges in India.
GTC Industries will demerge its real estate assets spread across Mumbai, Baroda and Hyderabad into a separate company. The demerged entity would then become a real estate development company while GTC would remain the cigarette manufacturer with brands
like Panama and Chancellor. The de-merged company would form joint ventures and develop real estate assets.

140 Indian companies in Russian trade fair

IANS

Moscow, March 2 (RIA Novosti) Around 140 Indian companies will be in the spotlight when they showcase their products at the international trade fair being organised in St. Petersburg March 11-14.

Companies from 17 countries, including India, Germany, Denmark, Britain and China, will participate in the four-day event.

'The first day of the fair will be devoted to Indian industry to commemorate the Year of Russia, which is now under way in India,' said Igor Kirsanov, director general of the Restek Company and organiser of the event.

The latest innovations in the fields of engineering, metalworking, metallurgical products and car parts will be displayed at the four pavilions of the Lenexpo exhibition complex.

The huge Indian delegation to the fair in St Petersburg is a clear indication that Indian companies are interested in cooperation with their Russian counterparts.

The biggest draw will be the new Indian car Tata Nano, the world's cheapest car, tagged at just $2,500. According to the organisers, the Russians are eager to see the car, though it is not clear whether the car will be brought here.

The Indian companies are keen on supplying car parts for the automobile assembly plants here. Toyota launched its assembly plant in 2007 and General Motors in February this year. Nissan, Suzuki and Hyundai will also set up their ventures soon. Ford has its plant in the Leningrad region.

According to Mikhail Oseyevsky, deputy governor of St Petersburg, besides the automotive industry, Indian businessmen are also interested in cooperation in the information technology and metallurgical sectors.

Alongside the Indian delegation, companies from the Czech Republic, Finland, Germany, Denmark, Britain, China, Turkey, South Korea, Austria, Croatia, Belarus and Ukraine will participate in the fair.

Global giants such as General Motors, Ford, Electrolux, Siemens and Bosch will showcase their products in the exhibition.

India's Sharp Tools and Russia's Elslar are likely to sign an agreement for a joint venture company - named Esweld - that will manufacture components for welding operations in the Elektrostal region near Moscow.

Weekly Report - 01/03/2008

MACRO ECONOMIC FACTORS

Inflation figures stood at 4.89 % at the end of this week compared with 4.35% last week.

The yield on the 10-year G – Sec has remained flat at 7.04%.

Crude oil price stood at US$101.84 per barrel by the end of the week. Over the week crude oil

prices hovering around US$99.23 – 102.59 per barrel.

Rs per US$ exchange rate closed at 40.02 by the end of the week. Exchange rate Rs/US$
continued to trade around Rs.39.75to 40.02.

Dow Jones crashes 314 points, Nasdaq 60

Big News Network.com Friday 29th February, 2008

Bulls were on their pants as Wall Street Friday as bears remained firmly in control of equity markets. The relentless fall in the U.S. dollar, and lingering fears of a recession, was the talk of the town. Sellers sent the Dow Jones Industrials down 314.32 points or 2.50% by the close of trading to 12,267.86. The Nasdaq Composite shed 60.09 points or 2.58% to 2,271.48. The Standard and Poor's 500 lost 37.05 points or 2.71% to 1,330.63. The National Association of Purchasing Managers-Chicago reported its index of regional business conditions fell to 44.5, its lowest reading in more than six years, from 51.5 in January. "It looks like there's been a reversal of fortune for the manufacturing sector from last month and the economy appears to have fallen off a cliff," Chris Rupkey, senior financial economist, Bank of Tokyo/Mitsubishi, New York, in referring to the Chicago PMI report, told Reuters newsagency. "This is just the latest piece of evidence that the U.S. economy is teetering on the edge of recession," he said. The dollar on Friday hit new record lows against the euro and Swiss franc, and dived to a three-year low against the Japanese yen.

Market Commentary

The barometer index BSE Sensex ended flat ahead of presentation of Union Budget 2008-09 by the Finance Minister P Chidambaram in Parliament. However, Nifty recorded gains against a flat closing for Sensex. Normally, the rise or fall in Sensex in a day is about three times that of Nifty.

The market had recovered from lower level in early afternoon trade after the finance ministry tabled Economic Survey - a report card on the economy during this fiscal in partliament at about 12:00 IST, the recovery was short lived. Derivatives contracts for February 2008 series expired today, 28 February 2008.

Auto, metal, healthcare stocks rose. Realty stocks fell. Reliance Industries slipped. The market breadth was weak. European markets which opened after Indian market were subdued in early trade. Asian markets, which opened before Indian market, were mixed.

Market News-28/02/2008

Supreme Court comes to UP Sugar mills rescue

Supreme Court has passed an interim order fixing the cane price for Sugar Season (SS) 06-07 at Rs 123 / quintal for early maturing variety and Rs 118 / quintal for late maturing variety. The same stood at Rs 130 / quintal and Rs 125 / quintal as per the SAP declared by the UP state government earlier. The Supreme Court had indicated that the sugarcane dues, based on the above prices, have to be paid by the mills within six weeks.
This news is negative for Bajaj Hindustan, which had accounted for cane cost at ~Rs89 /
quintal (based on SMP). Assuming cane cost at ~Rs120 / quintal and 12.6 million tonne of
cane crushing in SS 06-07, Bajaj Hindustan will have to account for a write off of Rs 39
crore as per the higher cane costs. However, the order will have a positive financial
impact on companies like Balrampur Chini Mills (BCML), Triveni Engg, Dwarikesh, etc,
which had accounted for cane cost at SAP rate of Rs125 / quintal. BCML, which crushed
9.2 million tonne in SS 06-07 will be able to write back ~Rs 46.2 crore (9.2 X Rs
50/tonne).

Impact of revised cane prices on UP Based Sugar Companies
Company Name Cane Crushed in SS 06-07 Net Benefit (Rs crore)
(million tonne) (@ Rs120 / quintal)
Bajaj Hindustan* 12.6 -39.0
Balrampur Chini* 9.2 46.2
Triveni Eng. 6.3 31.6
Simbholi Sugars 2.5 12.3
Dwarikesh 1.7 8.6
* on standalone basis

BGR Energy bags BOP contract worth Rs 793 crore from APGENCO
BGR Energy Systems has won a BOP contract worth Rs 793 crore from the Andhra Pradesh Power Generation Corporation for a 500-MW coal-based project in Kothagudam. This order was at a bidding stage when the company came out with its initial public offering. With this, BGR Energy has four BOP projects in its portfolio taking the total order book to Rs 3,715 crore.
Two unique strategies of BGR Energy in its BOP contracts — backward integration and direct bids to generation companies — provide it an edge over others in the business. BOP contracts not only involve providing services but also supplying materials. Of the products required to execute a BOP contract, BGR can manufacture up to 40-50 per cent in-house, given its backward integration. Such in-house production facilitates cost reduction.


Alfa Laval consolidates gains

Alfa Laval is a leading global provider of specialized products and engineering solutions based on its key technologies in heat transfer, separation and fluid handling. The Sweden based group’s listed 76.7% Indian subsidiary Alfa Laval (India) reported 112% surge in net profit to Rs 23.5 crore on 25% rise in net sales to Rs 203.1 crore in the quarter ended December 2007.
The company’s margins have improved for the second year in succession from 16.7% in Calendar Year 2005 to 17.3% in 2006, which has further hardened to 18.1% in 2007. But on a sequential basis, its margins have eased by 50 basis points from 18.1% in the quarter ended September 2007 to 17.6% in the quarter ended December 2007. It has maintained dividend at 250% for the fifth year in succession (including interim dividend of 100% paid in November 2007) since 2003 to 2007.

Market Commentary -26/12/2008

he market firmed up in mid-afternoon trade after Rail Minister Lalu Prasad Yadav provided thrust on modernising rail infrastructure in Railway Budget which he presented to parliament today. The market had opened on a firm note today tracking steady to firm trend in Asian stocks. Metal, capital goods, banking, realty and power stocks rose.

The market breadth was strong. Mid-cap and small-cap indices outperformed Sensex. 21 stocks from 30-member Sensex pack were in the green.

Railway Minister Lalu Prasad today announced a cut in freight rates by 5% on petrol and diesel in the Railway Budget for 2008/09. He also announced a reduction of 5% in fares for second class sleeper-class passengers. Yadav cut the fare of air conditioned (AC) I-tier by 7%, AC II-tier by 4%, and AC III-tier by 3%. The Indian railways will offer discounts on charges for freight booked during lean seasons Yadav told parliament in his budget speech

The Railway Minister said Indian Railways will report a cash surplus of Rs 25,000 crore in FY 2008-09. Railways will invest Rs 75,000 crore to upgrade infrastructure over the next seven years and also to start making steel coaches from FY 2009 and introduce them from FY 2010. There will be no peak season surcharge on cement transport.

Daily Coorporate News-26/02/2008

L&T to set up power equipment manufacturing plant in Hazira

Larsen & Toubro has zeroed in on Hazira, Gujarat, to set up its Rs 1,500-crore power equipment manufacturing plant. The engineering major would make turbines and boilers at the Hazira plant, For this purpose, it has floated two companies, L&T Turbines and L&T Boilers. Last year, L&T had signed a joint venture agreement with Japan's Mitsubishi Heavy Industries for setting up a manufacturing facility for super-critical boilers, super steam turbine and generator.

W.S. Ind Vizag plant to go on stream by June 08

The second plant of the Chennai-based W.S. Industries Ltd (WSIL), coming up in the multi-product special economic zone in Visakhapatnam at a cost of Rs 107 crore, will be production-ready by June. The plant will add 10,000 tonnes to W.S. Industries’ present capacity of 16,000 tonnes. The company will then be among the world’s top 10
manufacturers of insulators for power transmission

: Market Commentary - 25/12/2008

The key benchmark indices, which opened with a positive gap but soon turned weak amid high volatility in eary trade, bounced back strongly in afternoon trade on account of sustained buying in oil & gas and information technology stocks.

Market breadth was weak. Cement pivotals spurted. Oil & Gas, IT stocks rose. Consumer durables stocks declined. The market breadth was weak. 25 stocks from 30-member Sensex pack were in the green.

Daily News-25/02/2008

R-Power sets bonus at 3:5

Anil Ambani’s Reliance Power (R-Power) will offer three bonus shares for every five held in order to reduce the cost of acquisition for investors who had bought at the time of its record Rs 12,000-crore IPO. The bonus shares will be issued to all shareholders, except the promoter groups, Reliance Energy (REL) and Anil Ambani’s personal investment vehicles. Mr Ambani also announced that he will transfer 2.6% of his personal stake in R-Power worth Rs 4,700 crore to REL in order to compensate the company for the dilution of its stake in R-Power. The move is to ensure that REL’s shareholding remains unchanged at 45% in R-Power even though it has declined to accept the bonus issue.The dual move is expected to reduce the cost of acquisition of R-Power stock substantially — 40% for retail shareholders to Rs 269 per share and 37% to Rs 281 for others. It will also bring down Mr Ambani’s shareholding in R-Power by 5% to 40%.

BHEL, NPCIL plan JV for nuclear power plants

Power equipment major Bharat Heavy Electricals Ltd (BHEL) and Nuclear Power Corporation of India (NPCIL) are planning to float a joint venture to take up construction activities for nuclear power plants. The plan is to have a special company for undertaking equipment, procurement and construction (EPC) business for power plants. However details of the new company’s operations have not been finalised. At present, NPCIL generates about 3,900 MW of electricity from its 16 power plants. The company plans to more than double its capacity to 10,000 MW over the next six years. NPCIL plans to add 2,660 MW over the next two years, taking the total number of reactors to 23 with a capacity of 7,280 MW.

Microsoft email prepares workers for Yahoo takeover

TOI Monday 25th February, 2008
SAN FRANCISCO: A Microsoft executive on Friday sent workers an upbeat email outlining a vision of how the software giant expects to take over Yahoo and merge the companies’ cultures and resources.

Yahoo spurned Microsoft’s $44.6-billion bid for the veteran internet firm on February 11. Microsoft is reportedly planning a hostile takeover bid if Yahoo’s board of directors doesn’t change its mind. In a message to employees, Microsoft platform and services division president Kevin Johnson shared “a perspective of the process going forward.” “We look forward to a constructive dialogue with Yahoo’s board, management, shareholders, and employees on the value of this combination and its strategic and financial merits,” Johnson wrote.

“Once Yahoo and Microsoft agree on a transaction, we can begin the integration planning process in parallel with the regulatory review.” If Yahoo capitulates, the transaction would likely close in the second half of this year, according to Johnson

Weekly Report-23/02/2008

Inflation figures stood at 4.35 % at the end of this week compared with 4.07% last week.
The yield on the 10-year G – Sec has remained flat at 7.17%.

Crude oil price stood at US$98.81 per barrel by the end of the week. Over the week crude oil prices
hovering around US$98.23 – 99.7 per barrel.

Rs per US$ exchange rate closed at 40.03 by the end of the week. Exchange rate Rs/US$ continued to trade around Rs.39.78to 40.03.

Market Commentary -22/12/2008

The market tumbled today as blue chips came under renewed selling pressure. Weakness in Asian stocks triggered the latest round of selling on the domestic bourses. Banking, IT and auto were the worst hit in today’s fall.

The 30-share BSE Sensex was down 435.98 points or 2.46% at 17,298.70, as per provisional closing. Sensex hit a low of 17,294.73 at the fag end of the trading session. At the day’s low, the Sensex lost 439.95 points. Sensex hit a high of 17,526.80 in early trade. At the day’s high, the Sensex lost 207.88 points.

The broader based S&P CNX Nifty was down 97.50 points or 1.88% at 5,094.30 as per provisional closing.

Daily News - 22/02/2008

RCom goes global, buys Uganda co

Reliance Communication’ (RCom), the country’s second largest wireless operator, has acquired Anupam Global Soft Ltd a telecom firm in Uganda and will spend Rs 2,000 crore($500 million) over the next five years in establishing a high quality, fully-IP enabled integrated telecom network to capture the significant growth potential in this emerging African market. This marks RCom’s foray in the international mobile services market. RCom, through the target firm’s licences, would offer mobile, fixed line, Internet, long distance, Wimax and Wi-Fi services in Uganda. Financial details were not provided as of now, but, according to industry sources, the total deal size is likely to be higher than the $211 million for FLAG and $300 million for Yipes.

Alstom Projects India Ltd (APIL), a subsidiary of Alstom SA France, has bagged exports orders worth Rs 592 crore. The company has received two orders -- a Rs 242-crore order for Fujairah independent water and power plant, Fujairah, UAE, and Rs 350-crore order for Bujagali hydro electric power station at Jinja in Uganda. Alstom Projects will supply heat recovery steam generator (HRSG) for Fujairah plant, one of the largest desalination plants in the world.

Larsen and Toubro Ltd has been awarded an engineering, procurement and construction (EPC) services contract by Cairn India for crude oil insulated pipeline and gas pipeline from Barmer (Rajasthan) to Salaya (Gujarat). The work involves laying across-country 24-inch skin heat traced pipeline from the Mangala terminal at Barmer (Rajasthan) to Salaya Oil Export terminal, near Jamnagar. However the amount of order could not be ascertained. • Simplex Infrastructures Ltd has bagged orders worth Rs 302 crore for the construction of six flyovers on Seeb Corniche Road in Muscat. The project is to be completed in 24 months. The company after spreading its wings to construction business in Qatar and the UAE has now bagged its first order from Oman. The order book now stands at Rs 9,500 crore.

Market Commentary - 21/02/2008

The market staged a strong rebound in late trade to wipe-off losses and post modest gains for the day. Firm European markets, which opened after Indian markets and good response to Rural Electrification Corporation public issue helped the recovery.

Volatility on the bourses was high today. The market had slipped into the red in afternoon trade after opening on a strong note. A firm opening was due to strength in Asian markets. The market breadth was positive after turning negative in afternoon trade. 21 shares from the 30-member Sensex pack rose.

The 30-share BSE Sensex was up 117.08 points or 0.66% at 17,734.68. It slipped to a low of 17,482.31 in mid-afternoon trade. At the day’s low, the Sensex lost 135.29 points. Sensex had opened 265.42 points higher at 17,883.02 and rose further to touch a high of 17,887.21 in early trade. At the day’s high, the Sensex rose 269.61 points. The Sensex oscillated in a range of 404.90 points for the day.

At current 17,734.68, Sensex trades at a PE multiple of 16.90 to 17.73, based on projected FY 2009 EPS of Rs 1000-to-Rs 1050 for 30 Sensex companies.

The broader based S&P CNX Nifty gained 37.35 points or 0.72% at 5,191.80. Nifty February 2008 futures were at 5201, a premium of 9.20 points as compared to spot closing.

Daily News-21/12/2008

41% rise in net direct tax collections

The Centre’s direct tax revenues continued to be buoyant, with collections during the period April 1, 2007 to February 15, 2008 recording 41.4% increase to Rs 228,745 crore. This collection level constituted 85% of the budgeted direct tax target of Rs 267,490 crore for 2007-08. The strong growth in direct tax collections so far in the current fiscal has raised hope among taxpayers that the Finance Minister, Mr P Chidambaram, would moderate direct tax rates in the forthcoming budget. While corporate tax collections grew 38.8% for the period under review at Rs 138,073 crore, up from Rs 99,488 crore in the same period during the previous fiscal, personal income tax (including FBT, STT and BCTT) grew by 45.6% at Rs 90,356 crore, up fromRs 62,040 crore. Securities transaction tax (STT) collections recorded 84.6% growth to Rs 7,878 crore (Rs 4,267 crore). Fringe benefit tax (FBT) collections were up 29.8% to Rs 5,216 crore (Rs 4,020 crore). Banking cash transaction tax (BCTT) collections grew 16.8 per cent to Rs 478 crore (Rs 409 crore)

REL gets Mumbai trans-harbour project.

A consortium of Anil Dhirubhai Ambani Group (ADAG) company Reliance Energy has bagged the construction contract for the Mumbai trans-harbour link between Sewri in Mumbai and Nava-Sheva across the creek in Navi Mumbai. Anil Amabni group company outbid elder brother Mukesh's consortium to win the prestigious Rs 6,000 crore trans harbour link project.
The REL-Hyundai combine quoted a lower concession period for the build, operate and transfer (BOT) project of nine years and 11 months as against 75 years quoted by the Mukesh Ambani-controlled Sea King Infrastructure. Phase-I of the project will comprise a six-lane dual carriageway linking Nhava to Sewri and Phase-II, which is expected to be added in 2015 -18, will consist of a double track rail link that will run parallel to the road link on the north side. The project cost has been revised to Rs 6,000 crore with a construction period of five years. The REL-led consortium can charge Rs 250 per heavy vehicle and Rs 120 for cars and light commercial vehicles as toll charges. About 50,000 vehicles are expected to use the bridge every day. The toll will be subject to revision after every four years.

RCom to consolidate overseas business.

Anil Ambani controlled Reliance Communications (RCom), the country’s second-largest wireless operator, is consolidating its overseas business under one umbrella — Reliance Globalcom with a vision to create one of the top five global communications Companies in the world. It will be headquartered in London. The new entity brings under its fold Flag Telecom, Yipes Communications and RCom’s international business.
It will soon come up with an initial public offer. About $2 billion has been earmarked for capital expenditure over the next three years by the unit, which would be spun off shortly. The consolidation process will get over in the next 2-3 months. Reliance Globalcom would leverage the world class fully IP-enabled Global Infrastructure of Reliance Communications, and its subsidiaries, including 175,000 km of optic fibre and 20,000 km of Ethernet backbone in the US. Reliance Globalcom will have presence in over 50 countries including the top twenty financial centers in the world.

Market Commentary -20/02/2008

The domestic bourses tumbled today on negative cues from the global markets. Asian markets, which opened before Indian markets, suffered setback as oil prices hit a record high above $100 a barrel on Tuesday, 19 February 2008. European markets, which opened after Indian markets, declined. The market breadth was weak. 26 stocks from the 30-share Sensex pack declined. Shares from auto, banking and real estate were the hit the most in today's market fall.

Crude oil slipped on Wednesday, 20 February 2008 after surging nearly 5% to a record above $100.10 a barrel a day ago amid an influx of fresh investor capital into the commodities sector and concerns that Organization of Petroleum Exporting Countries (OPEC) will not hike output next month. US crude slipped 61 cents to $99.40 a barrel. London Brent crude fell 68 cents to $97.88 a barrel.

Market News -20/12/2008

Ranbaxy board okays de-merger of R&D unit

Pharmaceutical major Ranbaxy Laboratories Ltd has approved the hiving off of its research and development unit New Drug Discovery Research (NDDR) into a new subsidiary called Ranbaxy Life Science Research Ltd (RLSRL). As per the de-merger scheme shareholders will get one share of the new entity for every four shares held by them at present. The company said that the spin off will result in cost savings of about $25 million in the current year

ABB net up on robust order inflows
Buoyed by robust order inflows and a strong showing by power and automation businesses, ABB Ltd has reported a 34% jump in net profit at Rs 180.8 crore for the quarter ended December 31, 2007. The total income rose 30% to Rs 1,864.8 crore during the quarter. For the year ended December 31,2007, the company reported a 44% jump in net profit at Rs 491.7 crore, with total income rising 38% to Rs 6,001.4 crore. It has declared a dividend of 110 per cent (Rs 2.20 on each share with face value of Rs 2).

Biz jets on rent, next big play from Indian Hotels
Indian hotels, which is already in the business of private jet space with a company called Taj Air is now investing in BJets, a business jet operator, which intends to start services in May 2008. However this deal of BJets is independent of Taj Air. According to sources, Indian Hotels will be investing 36 to 37%, in a newly floated company, BJETS, in partnership with Singapore-based Briley Group. Briley, which has interests in aviation, hospitality and BPO around the globe, will be the majority owner in the company.

Market News

Everest Kanto Cylinders (EKC) is close to acquiring a US company for about $70 million.
Like EKC, the US Company also manufactures
compressed natural gas (CNG) and industrial gas cylinders. In October 2007, the
company raised $35 million through foreign currency convertible bond (FCCB) issue and
followed it up with a rupee funding worth $20-25 million. EKC could use these funds to
meet the acquisition cost.
On its way to become a leading CNG cylinder manufacturer with global scale, Everest
Kanto is on an ambitious expansion mode. It is building capacities at plants in India, China
and Dubai, and is currently seeing a $60 million capex plan.

Apollo, Ceat, MRF rev up to take on MNCs
Domestic tyre makers – Apollo, Ceat, MRF and JK Tyres – are expanding capacity, which
will take their combined capacity to 4.4 million units by 2010. This will help them to defend
their market share from the onslaught of global majors like Bridgestone, Michelin,
Yokohama, Goodyear and Pirelli, who are making inroads into the country’s Rs 19,000
crore tyre market.
Apollo Tyres is investing Rs 320 crore to increase the output. The company is
setting up a greenfield radial facility in Tamil Nadu for trucks, buses and cars.Besides, it has planned an off-the-road tyre facility in Gujarat.
Ceat Tyres, the country’s fourth largest tyre maker, will pump in Rs 800 crore to set up two facilities of 230 tonne/per day capacity.
JK Tyres, which has reportedly bagged the order for Tatas’ much-awaited Nano,
will invest Rs 150 crore in a new plant.
India’s largest tyre producer MRF is planning a new facility in Tamil Nadu.

Global Iron ore prices surge by 65%
Steel companies including Japan based Nippon Steel Corporation, JFE Holdings Inc and South Korea’s Posco have agreed to pay 65% .The world steel market is quite confident that it can protect its margins by passing on the rise in cost of inputs, including iron ore and steel. Given the decent demand growth, better pricing power due to consolidation, the steel sector has become more resilient in the past couple of years.
integrated steel companies like SAIL & Tisco which would not be affected by the surge in iron ore prices and in turn would command a better pricing as compared to its peers.

Market Commentary -18/02/2008

Breaking a three-day winning streak, the market edged lower today on profit taking. The market failed to sustain higher levels after a firm start. A firm opening was triggered by Reliance Power's surprise announcement on Sunday, 17 February 2008, that it would consider bonus issue. The market was down sharply in afternoon trade but managed to cut losses tracking firm European markets, which opened after Indian markets. The benchmark index, BSE Sensex, dipped below 18,000 mark only to regain that level in mid-afternoon trade.

Reliance Power soared on high volumes. Despite the market fall, the breadth was positive on buying in small-cap and mid-cap stocks. Asian markets were mixed.

Message for Retail Investors on MarginTrading

Why should there be margins?

Just as we are faced with day to day uncertainties pertaining to weather, health, traffic etc and take steps to minimize the uncertainties, so also in the stock markets, there is uncertainty in the movement of share prices. This uncertainty leading to risk is sought to be addressed by margining systems by stock markets.Suppose an investor, purchases 1000 shares of 'xyz' company at Rs.100/- on January 1,2008. Investor has to give the purchase amount of Rs. 1,00,000/- (1000X100) to his broker on or before January 2, 2008. Broker, in turn, has to give this money to stock Exchange on January 3, 2008.

There is always a small chance that the investor may not be able to bring the required money by required date. As an advance for buying the shares, investor is required to pay a portion of the total amount of Rs. 1,00,000/- to the broker at the time of placing the buy order. Stock Exchange in turn collects similar amount from the broker upon execution of the order. This initial token payment is called margin.
Remember, for every buyer there is a seller and if the buyer does not bring the money, seller may not get his/her money. Margin is levied on the seller also to ensure that he/she gives the 100 shares sold to the broker who in turn gives it to the Stock Exchange. Margin payments ensure that each investor is serious about buying or selling shares.

In the above example, assume that margin was 15%. that is investor has to give Rs. 15,000/- (15% of Rs. 1,00,000/-) to the broker before buying. Now suppose that investor bought the shares at 11 am on January 1.2008. Assume that by the end of the day price of the share falls by Rs. 25/-. That is total value of the shares has come down to Rs. 75,000/-. That is buyer has suffered a notional loss of Rs. 25,000/-. In our example buyer has paid Rs. 15,000/- as margin
but the notional loss, because of fall in price, is Rs. 25,000/-.. That is notional loss is more than the margin given.

In such a situation, the buyers may not want to pay Rs. 1,00,000/- for the share whose value has come down to Rs. 75,000/-. Similarly, if the price has gone up by Rs. 25/-, the seller may not want to give the share at Rs. 1,00,000/-. To ensure that both buyers and sellers fulfill their obligations irrespective of prices movements, notional losses are also need to be collected. Prices of shares may keep on moving everyday. Margins ensure that buyers bring money and sellers bring shares to complete their obligations even though the prices have moved down or up.

Reliance power to Issue Bonus

In a staggering move to cut the cost of the acquisition value of shareholders, Reliance power board will be meeting on 24th Feb 2008 to consider Bonus of shares excluding Promoters.
Promoters will be accepting to Dilute their holding.
the ratio will be decided in the board meeting scheduled for Feb24 2008

Weekly Report-16/02/2008

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.

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

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.

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.

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

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.

Weekly Report 08/02/2008

MACRO ECONOMIC FACTORS
Inflation figures stood at 4.11 % at the end of this week compared with 3.93% last week.
The yield on the 10-year G – Sec has remained flat at 6.83%.
Crude oil price stood at US$89.08 per barrel by the end of the week. Over the week crude oil prices hovering around US$87.14 - 90.02 per barrel.
Rs per US$ exchange rate closed at 39.62 by the end of the week. Exchange rate Rs/US$ continued to trade around Rs.39.44to 39.62.

Cox & Kings IPO

Cox and Kings Limited is all set to tap the Indian capital markets with an IPO in the near future. Cox and Kings IPO draft red herring prospectus has been filed with SEBI last week. Once the DRHP of Cox and Kings IPO is approved by SEBI, the IPO can open for subscription anytime withing 6 months from the date of SEBI approval. If the Indian stock markets are buyoyant, then Cox and Kings IPO is likely to hit the markets in March 2008.but looking at the recent withdrawls of Emar and Wockhardt Hosp it seems unlikely C&k will come with an IPO unless market stablises

Market commentary 08/07/2008

Market drifts lower in choppy trade Emaar MGF Land withdraws IPO

Volatility was the hallmark for the day as the market swung like pendulum in negative and positive terrain throughout the day. The market recovered from lower level in mid-afternoon trade on positive cues from European markets. The market had swung between positive and negative zone in mid-morning trade after undergoing high initial volatility. Sensex fell below 17,500 mark. Most of the Asian markets were closed today.

Market Commentary 07/02/2008

Sensex sheds 613

The market plunged for a second day in a row today weighed down by weak sentiment in global markets. A strong GDP growth forecast for the current fiscal and a surge in domestic liquidity, failed to provide any respite for the markets.

The 30-share BSE Sensex slumped 612.56 points or 3.38% at 17,526.93. Sensex shed 647.21 points at the day's low of 17,492.28, hit in late trade. Sensex touched a high of 18,198.68 in the initial trade. At day's high it rose 59.19 points.

The broader CNX S&P Nifty was down 189.3 points or 3.59% at 5,133.25.

Market Commentary 06/02/2008

Weak Asian markets cast their shadow on the Indian bourses today. Selling pressure was witnessed in consumer durables, IT, metal and auto stocks.
An unexpected contraction in the service sector in the US once again sparked fears the economy may sink into recession, hitting Asian stocks.
The 30-share BSE Sensex declined 523.67 points or 2.81% at 18,139.49. Sensex hit a high of 18,274.15 in mid-morning trade. At the day's high, Sensex was down 389.01 points. Sensex touched a low of 17,936.01 in initial trade. At day’s low it shed 727.15 points.

Market Commentary

The market surged for the second straight day in volatile trade on continued buying support in index pivotals. The market had soared in afternoon trade extending early gains as Asian stocks rose with sentiment boosted by Microsoft Corp's bid for Yahoo Inc and following China's buy of a large stake in takeover target Rio Tinto. However, it turned volatile in mid-afternoon trade and pared some gains as two index heavyweights Reliance Industries and ICICI Bank eased from day’s highs.

The market breadth was strong. 26 from the 30-member Sensex pack were in the green.

Maruti Suzuki raises prices

Maruti Suzuki raises prices by 1,000-11,000 rupees :
India's top car maker, Maruti Suzuki India Ltd, said on Saturday it had raised prices of many of its models by 1,000-11,000 rupees, mostly due to higher raw material prices.
Maruti is a unit of Japan's Suzuki Motor Corp and its models include the Alto and Swift hatchback."

France's Sarkozy marries Bruni at the Elysee

French President Nicolas Sarkozy has married supermodel-turned-singer Carla Bruni at the Elysee Palace on Saturday, after three long months their dating, French officials and family said.
The pair tied the knot at a low-key, civil ceremony conducted by the mayor of the Paris district that houses the president's grandiose official residence.

'I married two voters ... who live at 55 Rue du Faubourg St Honore,' Mayor Francois Lebel told Europe 1 radio, giving the official address of the Elysee.

'The bride was wearing white and was ravishing, as usual,' he said, adding: 'The bridegroom wasn't bad either.'
Sarkozy and Bruni indicated last month that had plans of marriage he made it clear that it would be a private affair, far from the crouching eyes of the press.
Their courtship has been splashed across the media and Sarkozy's popularity ratings had plunged in recent weeks, with voters complaining that the president was focusing too much on his private life and not enough on the country's many problems.

Budget your Money

The most important financial decisions we will ever make is to understand & learning how to make a personal budget. why is it so important because it gives us control of our money and tells us what needs to be done so If we are living on constant struggle with one paycheck to another paycheck, our money is not working for us, it's working for all our creditors and making them rich. It won't be bad for us if it turn its head make ourselves Rich instead.
Personal Budget helps us to track our income & expenses and shows us where our expenses are more then they need be. This allows us to Judge our decisions about how we spend our money and what you need to do to ensure that your future is financially sound.

1. one will need their last five months of pay bills. Add the total net pay and divide by five. This will give us your average income per month. Write that in the income column. Be sure to include all our income sources.

2. This same formula applies to our monthly expenses. Gather up our last five months of bills, credit card statements, and any other expenses we have. It is also a good idea to go through our cheque books's so we don't miss anything. Get an average for each category and then add them all up and write that number down at the bottom. This will give us a good are to start thinking.
3. Subtract the total expenses from the total income and see we stand. If our expenses are greater then our income than we have some work to do.

4. Look over our budget closely and start targeting expenses that we think are belligerent . our budget should allow us to start freeing up money that can be put for a better use.

5. we can also start prioritizing which expenses and debts need to be paid first.

6. As our budget evolves we can start using it for further refining our financial position. Retirement plans, and investments,Savings accounts can all be managed from that.

7. We have to be patient when we start. our first budget will be more of a sketched idea or a draft for future budgets. It normally takes a good three months before you will start to get your budgeting process dialed in.

The most important a Personal Budget will do is help us to take control of our money by making us to take disciplinary action towards money.
as they say money saved is money earned.

India's exports up 21.7% in three quarters

India's merchandise exports were up 21.7 per cent during the first three quarters of fiscal 2007-08, growing to $111.05 billion from $91.20 billion in the corresponding period of last fiscal.

Official trade data released on Friday, however, showed that in rupee terms the growth was significantly lower at 7.74 per cent during the period under review, indicating the sharp appreciation of the Indian currency this fiscal.

Imports were up 25.97 per cent during the first three quarters, growing to $168.87 billion from $134.05 billion. In rupee terms, the imports were up 11.54 per cent, the data showed.

While oil imports grew 11.68 per cent in dollar terms, non-oil imports were up 32.99 per cent, showed the data released by the commerce ministry.

The trade deficit accordingly for the April-December period was estimated at $57.82 billion, against $42.85 billion in the corresponding period of last fiscal.

Weekly Report

Inflation figures stood at 3.93 % at the end of this week compared with 3.83% last week.

The yield on the 10-year G – Sec has remained flat at 6.81%.

Crude oil price stood at US$88.96 per barrel by the end of the week. Over the week
crude oil priceshovering around US$88.96-92.33 per barrel.

Rs per US$ exchange rate closed at 39.36 by the end of the week. Exchange rate Rs/US$ continued totrade around Rs.39.36 to 39.39.

Microsoft Makes a Open Offer to Yahoo

Microsoft has targeted the slumping Internet icon Yahoo
with an hostile takeover offer of $44.6 billion in its boldest bid yet to challenge Google Inc.'s dominance of the lucrative online search and advertising markets.
With profits steadily on decline, Yahoo's stock slipped to a four-year low earlier this week and a new management team has been trying to steer a turnaround but sees more difficult times through 2008.

The announcement sent Yahoo's share price buzzing up 60% in premarket trading, while Google fell 8%, weighted down by a fourth-quarter earnings report that missed Wall Street expectations.

In a letter to Yahoo's board of directors, Microsoft Chief Executive Steve Ballmer indicated that the world's largest software maker is determined to bring the two companies together.

Asiana Housing Fixes Record Date for Bonus

Asiana Housing: Record Date for the issied of Bnus shares has been fixed. Earlier today, Asiana Housing Limited informed the stock exchanges that the board of directors of Asiana Housing have fixed the Record Date for the Bonus Issue as Friday, February 22, 2008. Shareholders of Asiana Housing who’s names appear in the shareholders register of Asiana Housing on the record date for the bonus issue, will be eligible for the issue of bonus shares.

Container Corporation may Issue a Bonus

Container Corporation:

Bonus has been recommended by the company in yesterday’s Board meeting.
The CONCORD Bonus Issue is subject to the approval of the shareholders in the forthcoming AGM. The Board has recommended Bonus Issue 1:1, which means shareholders of Container Corporation Limited who’s names appear in the shareholders register of CONCORD as on the record date of the bonus issue, will get 1 bonus share for every 1 share that they hold in CONCORD. Container Corporation Bonus issue record date is yet to be announced.

Fed Cuts Rate

The US markets came down after making initial rally after Fed Rate cut of .25 %
It wasn not a surprise as that the market pulled back, having suffered months of losses and having driven the Dow Jones industrials up more than 470 points so far this week ahead of the late-day downturn, The central bank's rate-setting Federal Open Market Committee trimmed the target for the federal funds rate, which banks charge one another for overnight loans, to 4.25% from 4.5%. The Fed has now cut that rate a full percentage point since it began its current round of reductions in September.
Dow Jones which had been up more than 200 points after the Fed's decision, finished down 37.47, or 0.30 percent, at 12,442.83

Wockhardt IPO opens 31 jan close Feb5

It seems due to the uncertainites in the market has led Wockhardt Hospital to change its mind.
Wockhhardt Hospitals has lowered the price band from to Rs225-260 from Rs280-310
This is one of the instances were the companies tries to take advantage of the bulls market.

Future Capital IPO Allotment Status

Future Capital IPO Allotment Status is out. The Future Capital IPO was heavily oversubscribed under all categories. It was over subscribed such heavly to the extent that many investors gave a stop payement as they were unsure about the allotment.

Reliance Power IPO Allotment Status

Reliance Power IPO Allotment Status is expected to be finalised by tomorrow. Reliance Power IPO Allotment will be made on the basis for investors who had applied for the maximum quantity under the Retail Investors category.
All other investors will get allotment in Reliance Power IPO on a lottery basis.

3 LAKH APPLICANTS DISQUALIFIED
43 lakh applicatns get 15 shares each
entire process to ve over in thursday
4 lakh investor applying for less than 225 shares not to get allotmenent

Globus Spirits IPO opens Feb 07

Globus Spirits IPO Subscription opens on Thursday, February 07, 2008. Globus Spirits IPO Price Band has been fixed at Rs. 140 to 160 per share of face value Rs. 10 each. SREI Capital Markets is the lead manager for the Globus Spirits IPO. Post IPO, the shares of Globus Spirits Limited will get listed on both the NSE and the BSE. Being in the fast going alcohol industry, the Globus IPO is likely to get heavily subscribed due to high subscription interest from institutional investors in the IPO. Globus Spirits IPO closes for public subscription on Tuesday, February 12, 2008.

Manjushree Extrusions IPO opens on 31 Jan

Manjushree Extrusions IPO opens on Thursday, January 31, 2008. Manjushree Extrusions IPO price band has been fixed at Rs.45 per share of face value Rs. 10 each. The shares of Manjushree Extrusions Limited are already listed and actively traded on the Indian stock markets. Manjushree Extrusions IPO will close for subscription on Wednesday, February 06, 2008.

Future Capital IPO Listing Feb 01

Future Capital IPO Listing Date has been fixed. In an announcement made with the stock exchanges, the registrar to the IPO has informed that the Future Capital IPO Listing Date has been fixed as Friday, February 01, 2008. Future Capital IPO Listing is expected at a huge premium to the IPO issue price of Future Capital Limited because of very heavy oversubscribing of the IPO. The exact listing price of Future Capital IPO will be updated here on Friday, February 01, 2008.

Weekly Report

MACRO ECONOMIC FACTORS

Inflation figures stood at 3.83 % at the end of this week compared with 3.79% last week.
The yield on the 10-year G – Sec has dropped down to 6.67%.

Crude oil price stood at US$90.22 per barrel by the end of the week. Over the week crude oil prices hovering around US$86.99-90.22 per barrel.

Rs per US$ exchange rate closed at 39.36 by the end of the week. Exchange rate Rs/US$ continued to trade around Rs.39.36 to 39.58

SVEC Constructions IPO Subscription opens Feb 04

SVEC Constructions IPO Subscription starts on Monday, February 04, 2008. SVEC Constructions IPO price band has been fixed at Rs. 85 to Rs. 95 per share. SVEC Constructions Limited is based out of Hyderabad and has a lot in common with IVRCL infrastructure. Both these companies specialise in irrigation related projects. SVEC Constructions IPO Subscription closes on Friday, February 08, 2008. The funds raised from the IPO will be used by SVEC Constructions for expansion purposes as well as regular business purposes.

Wockhardt Hospitals IPO

Wockhardt Hospitals IPO Subscription opens on Thursday, January 31, 2008. Wockhardt Hospitals IPO price band has been fixed at Rs. 280 to 310 per share. Wockhardt Hospitals is likely to emerge as the market leader since its much bigger in sheer balance sheet size when compared to Apollo Hospitals and Fortis Healthcare. Wockhardt Hospitals Limited is a part of the Wockhardt Group which already has two group companies listed and traded on the Indian stock markets. Wockhardt Hospitals IPO Subscription closes on Tuesday, February 05, 2008. Post IPO, Wockhardt Hospitals Limited will be listed on both the NSE and the BSE.

Earning Growth VS Earning Value

One of the most important Ideas in investing is diversification. one should have balance between a growth stocks and value stocks. I mean a balance of different types of investments, as well as investments in different types of sectors and companies. In order to have a diversified investment portfolio, it is important to have a mix of growth stocks and value stocks. This is also true if you include stock investments in your retirement plan. Growth stocks and value stocks differ, and so it is a good idea to understand the basic differences between the two.

Growth stocks

Growth stocks are those that represent rapid growth . They generally offer higher returns on the stock investments made. However, with those higher returns also come higher risks. A stock's value with growth stocks is usually determined on potential. Growth for small companies is general a yearly return of at least 10%, and for larger companies, it should be around 7%. Some stocks have even higher returns in sectors that have higher potential. When incorporating growth stocks in your portfolio, it might be a good idea to set a reasonable level at which you will sell. This can help you earn a profit and get out before a bear market destroys the value of the stock.

Value stocks

Despite what the name may lead you to believe, value stocks are not usually cheap. They are, however, considered to be good deals. They are solid, steady companies. Their growth is slower, but their strong fundamentals make them more likely to survive a bear market. While losses occur, they are usually less dramatic than price drops of growth stocks. However, by the same token, you won't experience as dramatic profits. A good strategy for value stocks is to look for the 52-week low and try to buy stock at that level. That way you are more likely to make a profit down the road.

In general, growth stocks are compatible with a more short-term investment plan (and an investment strategy based on technical analysis), and value stocks are compatible with a long-term plan (and an investment strategy based on fundamental analysis). It is important to evaluate your stock investments every few months to make sure that properly diversified in your stock holdings. Too many growth stocks can pose great risk to your investment portfolio. And too many value stocks may prevent your portfolio from reaching its potential.
As always, it is important to thoroughly research your investments. No matter the advice you get, you can still lose money. Any investment represents a certain amount of risk.

Earning Growth and Earning Value

One of the most important Ideas in investing is diversification. one should have balance between a growth stocks and value stocks. I mean a balance of different types of investments, as well as investments in different types of sectors and companies. In order to have a diversified investment portfolio, it is important to have a mix of growth stocks and value stocks. This is also true if you include stock investments in your retirement plan. Growth stocks and value stocks differ, and so it is a good idea to understand the basic differences between the two.

Growth stocks

Growth stocks are those that represent rapid growth . They generally offer higher returns on the stock investments made. However, with those higher returns also come higher risks. A stock's value with growth stocks is usually determined on potential. Growth for small companies is general a yearly return of at least 10%, and for larger companies, it should be around 7%. Some stocks have even higher returns in sectors that have higher potential. When incorporating growth stocks in your portfolio, it might be a good idea to set a reasonable level at which you will sell. This can help you earn a profit and get out before a bear market destroys the value of the stock.

Trading on Margin

Trading on margin can be risky but an excellent tool for creating wealth.

However, one word of advice.Do not let the compulsory trader in you burn your chances for winning.

Trading on margin is not for the weak hearted but when a well designed system for trading includes proper money management strategy then it need to be considered.

Money management is an essential component for trading in the stock.There can be no excuse for remaining absent minded about your money management skills. Educate yourself and move into your trading positions with an understanding and preset strategy for capital distribution. Each trader should recognize the importance of knowing how much to buy and sell and how many positions to hold at any one time.

Go into each trade with absolute confidence. Find a trading strategy that makes sense for your personality and always take a winning mindset into the game of high stakes money. Your financial education will be your greatest lever. As a well trained investor you can gain far higher returns with far less risk and much less money.

Is Stock Trading Full Time Profession ?

Trading should be profitable and time efficient. Enjoy the endless news and different opinions from so called analysis. P.E ratio, eps, roe and all other complex teerms to understand the potential of the company company management structure, expansion plans, product developement, etc. are all pieces in a complex and often very puzzling profile for any company you may be studying.

Stock trading full time kya ? Market analyzation can take the stress out of over indulging in market babble and deliver a far more profitable time/ROI ratio.
The bottom line is that there are an plenty of market forces that will move the price of a stock. Market forces can be measured, represented, and evaluated using indicators so the trader can move with advantage in any market trend.

Therein lies the importance of mathematical based systems for trading that objectify the evaluation of stock choices, quantify the historic patterning of an individual stock pick, and remove the traders anxiety over what forces may be playing the most significant role in their stock portfolio's movement.

Here are a few that can be used for purposeful trading.

Fibonacci Numbers and the Golden Ratio

Fibonacci numbers were originally developed well before the world even knew what publicly traded stocks were. The application of Fibonacci numbers and the Golden Ratio to stock prices revealed that stock markets trends tended to be more geometric than most researchers first realized. The premise is that human nature is predictable, and that the resulting changes in the stock prices are attributable to this expected behavior.

This is an interesting concept, but it was adapted to the stock market, not developed for it. Some stock trading systems may incorporate portions of this tool, but there are other indicators that should be accounted for in order to successfully predict future trends.

Elliot Wave

Elliot waves were developed to classify price fluctuations as either impulse waves or corrective waves. They are a simplified way of graphing actual stock price fluctuations. Elliot waves can help you identify trends and predict stages of a stock cycle. Just like any other investing tool, they are not always correct, but they can improve your ability to forecast market fluctuations.

Investors can benefit by using this tool, but it should be supplemented with additional tools to provide a more complete picture of expected stock price trends. Elliot wave charts are useful, but they do not fill the need for stock trading systems.

Bollinger Bands

Bollinger Bands were developed by John Bollinger as a way for measuring volatility in stock prices. One moving average serves as a baseline average. A higher band serves as the upper range of stock price, while a lower band likewise serves as a lower range. The greater the range between the bands, the more volatile the stock price is.

Bollinger Bands are a simple way for identifying risks and opportunities within stocks by giving a somewhat clearer indication of what the likely ranges for change will be in the future. This system has had some successes and provides a simple method for predicting stock price behavior.

my view

the whole stock market as turned down not only for dowjones, nasdaq. but the other asian economies have turned back, the shanghai market which was booming for the last 2 yrs have started the fall, in the last few quarters the emerging markets have out performed. the indian markets have cleary made a top on both short & medium term.
its better to buy a stock when a buy signal comes rather than jump into for bottom fishing.

Weekly Report

MACRO ECONOMIC FACTORS
Inflation figures stood at 3.79 % at the end of this week compared with 3.50% last week.
The yield on the 10-year G – Sec has dropped down to 6.77%.
Crude oil price stood at US$90.57 per barrel by the end of the week. Over the week crude oil prices
hovering around US$90.13-94.2 per barrel.
Rs per US$ exchange rate closed at 39.30 by the end of the week. Exchange rate Rs/US$ continued to
trade around Rs.39.26 to 39.31.

Nifty
Market closed weak on a weekly basis. On weekly charts we have a bearish pattern in place indicating the
bearish trend in the market. The market opened the week on a strong selling pressure at higher level. Market failed
to show any strength of bounce back. Market is likely to remain volatile this week and is likely to oscillate in a range
of 5575 on the down side and 5865 on the upper side. Major support for Nifty is at 5575, 5395and 5101. And major
resistances are at 5865, 6050 and 6340.

The Lovers

Reliance Power premium slips in grey market

Shrinking grey market premium in the Reliance Power issue, as a result of the bearish mood in the market in the past two sessions, is prompting investors in the non-institutional category to reduce their exposure to the issue. According to market sources, the grey market premium has now slipped to Rs 280, compared to Rs 320 on Tuesday and is way below the price of Rs 400 it had been commanding last week.

Many HNIs are said to have informed non-banking finance companies that they will not be requiring the entire lot of funds that they had initially committed to borrow. If the premium in the grey market narrows down, it would mean lower gains on the day of listing.

ICICI Bank aims to be among world's top 10 within 5 years

NEW DELHI: ICICI Bank, the country's biggest private lender, expects overseas business to account for at least one-fourth of its balance sheet in 2008 and is targeting a place among the world's top ten banks within five years.