· Unitech is planning to raise Rs. 50 bn through issue of securities. (BS)
· Cairn India has made oil and gas discovery near its existing field in Rajasthan. (BS)
· ONGC, BHP-Billiton-GVK Power combine, and the Reliance Industries-BP Plc joint venture signed contracts for exploring for oil and gas in 44 areas, committing USD 1.5 bn in investment. (BS)
· BHEL bagged a Rs. 11.75 bn contract for setting up a 500 MW thermal power plant at Bina in Madhya Pradesh. (BS)
· IVRCL Infrastructures & Projects issued 2,000 secured redeemable non-convertible debentures of Rs. 10 lakh aggregating Rs. 2 bn to LIC. (BS)
· Parsvnath Developers is in the process of acquiring land for SEZ at 11 locations across India. (ET)
Economic and Political Headlines:
· The insurance reforms bill is represented with a proposal to increase the cap on FDI in private companies in the sector from 26% to 49% and allowing state-owned general insurance companies to raise funds from capital markets. (BS)
· The trade ministry said that India has lifted a ban on cement exports, as price pressures eased and domestic demand is depressed due to a slowdown in construction activity. (Live mint)
International News Headlines:
· China reduced the one-year lending rate to 5.31% and the deposit rate to 2.25% from 23 December, 2008 after trade growth collapsed because of recessions in the US, Europe,
and Japan. (Bloomberg)
· The Japanese government lowered its assessment of the economy for a third month, describing conditions as the most severe since 2002. (Bloomberg)
· European industrial orders plunged by 15.1% in October as the global recession deepened, eroding demand for machinery and equipment. (Bloomberg)
 | 3039.30 | ( -1.24 %) | -38.20 |  |
| 1 | 2 | 3 | ||
| Resistance | 3090.57 | 3141.83 | 3173.22 | |
| Support | 3007.92 | 2976.53 | 2925.27 | |
 | 9928.35 | ( -1.70 %) | -171.56 | | |
| 1 | 2 | 3 | |||
| Resistance | 10103.12 | 10277.90 | 10382.45 | ||
| Support | 9823.79 | 9719.24 | 9544.46 | ||
FII DATA 22-12-08
FII -191.49
DII +207.55
Strong & Weak futures
This is list of 10 strong futures:
HDIL,DLF,Matrix Lab,Patel Eng,Purva,Unitech,Educomp,Bindal Agro, Aptech & Suzlon.
And this is list of 10 Weak Futures:
J Stainless,Satyam Comp,Bhusan Stl,Birla Jute,Rolta,Redington,Jindal Saw,Nucleus,Sterlinbio & Gt Offshore.
Nifty is in Up Trend.
NIFTY FUTURES (F & O)
Below 3025-3027 zone, selling may continue up to 3015 level and thereafter slide may continue up to 2990-2992 zone.
Hurdles at 3049 & 3059 levels. Above these levels, expect short covering up to 3093-3095 zone and thereafter expect a jump up to 3128-3130 zone.
Above 3140-3142 zone, it can zoom up to 3174-3176 zone and supply expected at around this zone and this supply should get absorbed too.
On Negative Side, rebound expected at around 2979-2981 zone. Stop Loss at 2944-2946 zone.
Short-Term Investors:
Short-Term trend is Bullish and target at around 3202 level on upper side.
On Negative Side, corrections up to 2821 level can be used to buy. Maintain a Stop Loss at 2694 level for your long positions too.
BSE SENSEX
Technically Recovery should happen.
Short-Term Investors:
Trend is Bullish & Technical target at around 10443 level on upper side. Corrections up to 9297 level can be used to buy. SL at 8914 level.
GLOBAL CUES & RUPEE
The Dow Jones Industrial Average closed at 8,519.69. Down by 59.42 points.
The Broader S&P 500 closed at 871.63. Down by 16.25 points.
The Nasdaq Composite Index closed at 1,532.35. Down by 31.97 points.
The partially convertible rupee <INR=IN> ended at 48.01/48.03 per dollar on yesterday, weaker than Friday's close of 47.25/26.
IT SECTOR Stocks May Fall.
Trading Calls 23rd Dec 08
+ve sectors & scripts : Aptech, Balramchin, Castrol, Gtoffshore,
Buy YesBank-80 above 82 for 89 with sl 80 [Trading]
Buy Petronet-39 for 44.60 with sl 37
Buy Sintex-191 for 197 with sl 188
IFCI: Multi-Bagger
The deal to privatise IFCI has been truncated twice during CY08. However, with the PM now heading the Finance Ministry decks are being cleared for a politically acceptable solution. The solution cobbled together by North Block is to divest 26 per cent of the GOI stake to IDFC and then proceed with a massive effort to bring IFCI back to its feet.
Those in the know claims that the Assets held by IFCI including sizeable stakes in many organisations like the NSE and shares held either as investments or as collateral for loans granted to Indian Industry, substantially exceed the market capitalisation of IFCI. What is needed however, is the will to make IFCI realise the value on its books and bring back the venerable institution back to a stage where it can play a meaningful role in the rapid industrialisation of the country.
Here the extraordinary record of IDFC will come to the fore as would the fact, that IDFC is a pseudo GOI entity and its management control of IFCI would be acceptable to politicians of all hues and the labour unions. Investors would recall that IDFC had competed earlier in the year with the likes of Blackstone Group LP and General Electric Capital Corp. for a stake in the state-run project financier.
The bidders had included Blackstone, US billionaire Wilbur Ross and Vedanta owner Anil Agarwal. The deal had failed at the last moment on the issue of pricing and management control and a final phase-out of the GOI holding in IFCI over a period of time. These issues are now believed to have been resolved. The winner of the 26 percent IFCI stake will gain access to a market where lending grew 28 percent last year, and where the central bank limits foreign banks' ownership of local private rivals to 5 percent. IFCI, was bailed out by
the government in 2003 because of bad debts, in July announced plans to sell a stake to a local or overseas investor to bolster its capital.
Other bidders including a group led by billionaire Wilbur Ross and comprising Goldman Sachs Group Inc., Standard Chartered Plc and India's Housing Development Finance Corp., alongside Cargill Financial Services Corp., Natixis SA and Newbridge Asia for the stake. However, most bidders had dropped out by the time the final bids were to be opened.
In the wake of the cancellation of the bidding process IFCI had seen its stock plunge from a high of Rs 140 early on in CY08 to a low of Rs 15.25. On last Friday it closed slightly higher at Rs 23.20, still down 84 per cent from the peak. GOI which has been grappling with means to finance a projected $ 550 bn in infra spend over the next 5 years needs all resources at its disposal to work so as to maintain a 8 per cent plus annual GDP growth, in an environment that has plunged from Euphoria to Gloom.
Analysts however claim that funds are available to the right projects and to the right institutions, only the GOI has to show its resolve and some form of urgency. Some of the $ 550 billion of roads, ports and power stations the government wants built by 2012 could take off in the coming months and years. The potential returns in India spurred Blackstone, Citigroup Inc. and 3i Group Plc to start infrastructure funds this year. Infrastructure Development is partnering Blackstone and Citigroup for a $5 billion infrastructure fund in India and its taking over IFCI will further the aims of the GOI. The IFCI stock can be a multi-bagger of CY09.
(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
--
Arvind Parekh
+ 91 98432 32381
