Market Outlook 29th July 2009

Intraday Calls 29th Jul 2009
Buy ACC-865 for a target 879-888-899 stop loss 857
Buy APIL-534 for a target 546-557 stop loss 525

Buy Mahlife-300 for a target 318-321 stop loss 294
Buy Welguj-227 for a target 234-245 stop loss 221

Buy Sobha-221 above 226 for a target 236-245 stop loss 220

 

Index changes from July 31:
-PTC India to replace Adlab Films in BSE 200
-Dhanalakshmi Bank to replace Adlab Films in BSE 500
-Adlab Films to be removed from BSE midcap, tech indices

stocks that are in news today:
Wockhardt to divest nutrition businesses to Abbott for $130 million ((includes Farex, Protinex brands))
L&T unit files prospectus for bond issue up to Rs 1000 crore
Gujarat Gas board approves bonus issue ((quantum not given))
3i Infotech board approves issue of securities ((quantum not given))

 

NIFTY FUTURES LEVELS

SUPPORT

4551

4544

4523

4514

4486

RESISTANCE

4576

4582

4612

4639

4648

4676

SHR RENUKA SUGARS;NAGAR CONSTRUCTI

 

Strong & Weak  futures 
 This is list of 10 strong futures:

DLF, Bharat Forg, Tata Motors, Jindal Steel, Maruti, Purva, HCL Tech, LILT, Jindal Steel & GSPL. 

And this is list of 10 Weak futures:

IOC, Chambal Fert, RPL, Nagar Fert, Essar Oil, LIC, India Cemt, Reliance, Bank of India & ZEEL.
 Nifty is in Up Trend. 

 

NIFTY FUTURES (F & O):  
Below 4551-4553 zone, selling may continue up to 4544 level and thereafter slide may continue up to 4523-4525 zone by non-stop.

Hurdles at 4576 & 4582 levels. Above these levels, expect short covering up to 4610-4612 zone and thereafter expect a jump up to 4637-4639 zone by non-stop.

Sell if touches 4646-4648 zone. Stop Loss at 4674-4676 zone.

On Negative Side, break below 4514-4516 zone can create panic up to 4486-4488 zone by non-stop. If breaks & sustains this zone then downtrend may continue.
 
Short-Term Investors:  
Bullish Trend. 3 closes above 3906 level, it can zoom up to 4600 level by non-stop.
3 closes above 4600 level, it can zoom up to 4947 level by non-stop.
 
BSE SENSEX:  
Lower opening expected. Recovery should start.
Correction: We made a mistake yesterday. It should have been typed as "Higher opening expected. Profit Booking should start."

We left it blank. Error is regretted.
 
Short-Term Investors: 
 Short-Term trend is Bullish and target at around 15379 level on upper side.
Maintain a Stop Loss at 13220 level for your long positions too.

3 closes above 15379 level, it can zoom up to 16459 level by non-stop.

Correction: We made a mistake yesterday. It should have been typed as "Short-Term trend is Bullish and target at around 15379 level on upper side.

Maintain a Stop Loss at 13220 level for your long positions too.

3 closes above 15379 level, it can zoom up to 16459 level by non-stop."

We typed as "Higher opening expected. Profit Booking should start.".  Error is regretted.

 

POSTIONAL BUY:
Buy SHR RENUKA SUGARS (NSE Cash) 
Uptrend to continue.

Mild sell-off up to 163 level can be used to buy. If uptrend continues, then it may continue up to 173 level for time being. 

If crosses & sustains at above 179 level then uptrend may continue.

Keep a Stop Loss at 157 level for your long positions too.
 
Buy NAGAR CONSTRUCTI (NSE Cash) 
Uptrend to continue.

Mild sell-off up to 145 level can be used to buy. If uptrend continues, then it may continue up to 156 level for time being. 

If crosses & sustains at above 161 level then uptrend may continue.

Keep a Stop Loss at 138 level for your long positions too.

 

 

FII DATA

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	28-Jul-2009	3459.31	3518.07	-58.76

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	28-Jul-2009	1682.61	1234.39	+448.22

 

SPOT LEVELS TODAY

	4564.10	( -0.18 %)	-8.20
		1	2	3
Resistance		4599.62	4635.13	4670.37
Support		4528.87	4493.63	4458.12

	15331.94		( -0.28 %)	-43.10
			1	2	3
Resistance			15450.09	15568.24	15673.02
Support			15227.16	15122.38	15004.23

 Global Cues & Rupee 
 The Dow Jones Industrial Average closed at 9,096.72. Down by 11.79 points.
The Broader S&P 500 closed at 979.62. Down by 2.56 points.

The Nasdaq Composite Index closed at 1,975.51. Up by 7.62 points.

The partially convertible rupee INR=IN ended at 48.21/22 per dollar on yesterday, weaker than Monday's close of 48.16/17.

Correction: We made a mistake yesterday. It should have been typed as "The Dow Jones Industrial Average closed at 9,108.51. Up by 15.27 points.

The Broader S&P 500 closed at 982.18. Up by 2.92 points.

The Nasdaq Composite Index closed at 1,967.89. Up by 2.92 points.

The partially convertible rupee INR=IN closed at 48.16/17 per dollar on yesterday, stronger than its Friday's close of 48.22/23."

We typed as "Short-Term trend is Bullish and target at around 15379 level on upper side.

Maintain a Stop Loss at 13220 level for your long positions too.

3 closes above 15379 level, it can zoom up to 16459 level by non-stop."

Error is regretted.
 
 Interesting findings on web:
The Dow Jones industrial average lost 12 points, or 0.1%, to 9,097 and the S&P 500 fell 3 points, or 0.3%, to 980 after losing as much as 1.2% during the session. The Nasdaq rallied mid-afternoon to finish with an 8-point gain, up 0.4% at 1,976.

An economic reality check is cooling the stock market's rally.

Two-week rally left the index trading at 16.23 times its companies' earnings from the past year, the most expensive valuation since September.

"My concern is that the valuations aren't justified," said Charles Knott, chief investment officer at Knott Capital Management in Exton, Pennsylvania, who oversees about $500 million. "The market has come a long way in the last month and while earnings have generally exceeded expectations, the expectations were probably set too low."

The U.S. consumer confidence index declined more than expected in July, a second consecutive monthly fall, as a sluggish labor market continued to worry consumers, the Conference Board said.

Countering the latest whiff of recovery on housing, the Conference Board's reading on consumer sentiment fell to 46.6 this month from June's 49.3, surprising economists who expected a more modest decline to 49 as high unemployment and mounting foreclosures weigh on American shoppers. The SPDR S&P Retail ETF ( XRT - news - people ), which tracks retailer stocks, fell 20 cents, or 0.7%, to $29.95.

If consumers don't step up spending, companies will find it hard to chalk up the revenue gains they need to truly recover. The recent string of stronger corporate profits have come from deep cost-cutting, which can only lift earnings for so long.

U.S. single-family home prices rose in May from April, the first monthly increase in nearly three years, the Standard & Poor's/Case-Shiller home price indexes showed.

The S&P/Case-Shiller index showed home prices inched up in May, the first monthly gain since the real estate heyday of 2006. However, prices are still down 17% from 2008 and off by a third in three years.

Real estate has been in the spotlight recently with higher sales of new homes reported Monday.

Highlights of U S Markets:

Consumer confidence slips.

Oil prices hit energy shares.

Healthcare sector leads late recovery.

Losses were limited as technology and health-care stocks gained.

Amgen beats Wall St's estimates, bolsters biotech shares.

The health insurance sector also rose after Coventry Health Care's (CVH.N) earnings topped Wall Street's estimates.

Afternoon recovery was linked to a poor U.S. Treasury auction, as money shifted from bonds into the stock market.

Shorter-dated U.S. Treasury debt fell after weak results in an auction of a record $42 billion of two-year notes had some analysts wondering if the global appetite for U.S. government debt might be waning.

Boeing, Bank of America and General Electric were the best performers on the Dow. Bank of America CEO Kenneth Lewis told investors last week he is planning to shrink the company's 6,100-branch network by about 10%, according to the Wall Street Journal. Techs were helped by gains for Microsoft.

The Dow Jones biotechnology index .DJUSBT gained 1.8 percent.

Coventry Health Care (CVH.N) shares rose 12.7 percent to $22.59 on the New York Stock Exchange after the company's earnings topped Wall Street's estimates and it lifted its full-year earnings forecast.

Aetna (AET.N) jumped 12.6 percent to $28.96 after at least three brokerages said the insurer's recently slashed 2009 earnings forecast is achievable. Aetna and Coventry helped push the Morgan Stanley Healthcare Payors index .HMO up 6.5 percent.

But the energy sector's shares weighed on the broader market as the weak consumer confidence data took a toll on oil prices, which had risen on optimism about the economic recovery. U.S. front-month crude futures CLc1 dropped $1.15, or 1.7 percent, to settle at $67.23 a barrel.

Exxon Mobil Corp (XOM.N), down 1.2 percent at $71.89, was the top drag on the Dow industrials. The S&P energy index .GSPE slid 1.5 percent.

Coach, the biggest U.S. maker of luxury leather handbags, lost 1.3 percent.

Office Depot (ODP.N), the No. 2 U.S. office supply retailer, reported a bigger-than-expected quarterly loss as the recession bit into demand from corporate customers. The stock tumbled 18.1 percent to $4.38.

U.S. Steel Corp (X.N) shares fell 2.2 percent to $40.35 after the company reported a quarterly loss and said it expected all of its business sectors to operate in the red in the third quarter.

Back on the companies front, media firm Viacom saw its second-quarter profit tumble 32% to $277m due to weak advertising markets and slower video game sales. Theatrical revenue, the group owns Paramount Pictures, also performed poorly, with revenue falling 27% to $584m.

IBM, meanwhile, has agreed to buy Chicago-based business software maker SPSS in an all-cash deal worth $50 per share or $1.2bn. 

S&P 500 - Risers

Aetna Inc. (AET) $29.09 +13.10%

Coventry Hlth Care (CVH) $22.66 +13.02%

Masco Corp. (MAS) $13.04 +12.93%

Tenet Hlthcre Corp. (THC) $4.05 +12.50%

Citigroup Inc. (C) $2.97 +10.41% 

S&P 500 - Fallers

Office Depot Inc. (ODP) $4.38 -18.13%

Interpublic Group (IPG) $5.41 -12.60%

Manitowoc Co. (MTW) $5.89 -10.35%

Plum Creek Tim Reit (PCL) $30.50 -8.05%

Hartford Fin Svc (HIG) $14.76 -7.34% 

Dow Jones I.A - Risers

Boeing Co. (BA) $43.25 +2.39%

Bank Of America Corp. (BAC) $13.34 +1.91%

General Electric Co. (GE) $12.55 +1.87%

Microsoft Corp. (MSFT) $23.50 +1.69%

Home Depot Inc. (HD) $25.39 +0.91% 

Dow Jones I.A - Fallers

Pfizer Inc. (PFE) $16.04 -3.49%

Merck & Co. Inc. (MRK) $29.98 -2.56%

American Express Inc. (AXP) $27.67 -2.50%

AT&T Inc. (T) $25.40 -1.28%

Du Pont E I De Nemours and Co. (DD) $29.99 -1.21%

Among the S&P industry groups leading the market lower Tuesday: oil & gas equipment & services (-3.88%), gold miners (-3.15%), industrial REITs (-3.15%), advertising (-2.86%), and agricultural products (-2.83%).

Groups on the upswing included building products (+5.75%), health care facilities (+3.84%), reinsurance (+2.16%), biotechnology (+1.71%), and electronic equipment & instruments (+1.29%).

Commodities and Treasuries dropped, and the dollar rose.

What to expect in coming days?

Sprint Nextel (S, Fortune 500), Time Warner (TWX, Fortune 500), Aetna (AET, Fortune 500) and ConocoPhillips (COP, Fortune 500) are all due to report results Wednesday morning.

The June durable goods orders report is also due Wednesday morning, along with the weekly crude oil inventories report from the Energy Information Administration. In the afternoon, the Federal Reserve releases its periodic "Beige Book" report on economic activity in its 12 districts.

This week is the biggest for corporate results, with 146 of the S&P 500 due to release reports. So far, 77% of reported earnings have topped forecasts, versus the long-term average of 61%, according to earnings tracker Thomson Reuters.

Oil:

Crude oil tumbled and gasoline fell for the first time in 11 days as U.S. consumer confidence slipped, bolstering concern energy demand may be slow to recover.

Futures also retreated after companies posted lower-than- estimated second-quarter earnings. BP Plc Chief Executive Officer Tony Hayward said that there is "little evidence" of a recovery in consumption. U.S. fuel inventories have climbed for six consecutive weeks as the economic contraction curbed demand.

Treasury

Treasury two-year notes fell for a second day as the securities drew a higher-than-forecast yield at today's $42 billion sale, spurring concern the $115 billion of notes slated for auction this week will overwhelm demand.

The notes sold at a yield of 1.08 percent, above the 1.058 forecast in a Bloomberg News survey of bond dealers. The government is scheduled to offer $39 billion of five-year debt tomorrow and $28 billion of seven-year securities on July 30.

The yield on the existing 1.125 percent note maturing in June 2011 rose three basis points, or 0.03 percentage point, to 1.06 percent at 2:20 p.m. in New York, according to BGCantor Market Data. The price of the security fell 3/32, or 94 cents per $1,000 face amount, to 100 2/32.

10-Year Notes

Ten-year notes gained for the first time in five days. The difference between 2- and 10-year notes, known as the yield curve, fell 3 basis points to 2.60 percentage points after touching 2.71 percentage points yesterday, the most since June 5.

Today's two-year sale was the biggest offering of the notes since the Treasury began monthly auctions of them in the mid- 1970s.

Currencies:

The dollar rose from the lowest level this year against the currencies of six major U.S. trading partners on revived demand for the safety of the world's main reserve currency.

The dollar depreciated 0.5 percent to 94.67 yen, extending its drop this month to 1.9 percent. The euro decreased 0.4 percent to $1.4171 from $1.4232, erasing gains as equities declined. The 16-nation currency traded in July in a range of $1.3833 to today's high of $1.4304, the strongest level since June 3.

The yen advanced versus the euro for the first time in four days as a bigger-than-forecast drop in U.S. consumer confidence this month discouraged Japanese investors from buying higher- yielding assets overseas.

Gold fell the most in almost three weeks as the dollar rebounded against the euro, eroding demand for the metal as an alternative investment. Silver also declined.

Fed:

Fed's Yellen Sees First 'Solid' Signs of End to Slump

Federal Reserve Bank of San Francisco President Janet Yellen said the U.S. economy is showing the "first solid signs" of emerging from the recession and should resume growth later this year.

Other News:

House Panel Approves Bill Letting Regulators Ban Incentive Pay

The U.S. House Financial Services Committee approved legislation that would let regulators ban incentive pay at banks and give shareholders a vote on bonuses in response to public outrage over Wall Street pay.

Ross Says 'Never Again' on Banks Purchases Under FDIC Rules

Wilbur Ross, the billionaire private-equity investor, said the Federal Deposit Insurance Corp.'s proposed guidelines for bank takeovers are onerous and will deter buyout firms from making offers for lenders.

Bernanke Lost Money as Decline in Stock Markets Trimmed Assets

Federal Reserve Chairman Ben S. Bernanke lost money in the stock market last year as his holdings in annuities and other assets tumbled by as much as 29 percent, according to his annual financial disclosure forms.

Vale Says Chinese Mills Accepting Ore Prices, Estado Reports

Vale SA said some Chinese mills are accepting contract prices for iron ore at the same level as those negotiated with steelmakers in other countries, O Estado de Sao Paulo said, citing Ferrous Director Jose Carlos Martins.

Nomura's Asia Chairman Jasjit Bhattal to Resign, WSJ Reports

Nomura Holdings Inc.'s Asia chairman, Jasjit Bhattal, will resign, the Wall Street Journal said, citing unidentified people. Bhattal, the former chief executive of Lehman Brothers Holdings Inc. in Asia, would become the most senior person to leave since Nomura acquired Lehman's operations last year, the newspaper said.

Nissan to Make 2-Liter Gasoline Engine in U.K., Nikkei Reports

Nissan Motor Co. plans to start manufacturing a 2-liter gasoline engine next May in the U.K., Nikkei English News reported, without saying how it obtained the information.

ASIA:

Japan's Nikkei average rose 0.2 percent on Wednesday as Canon (7751.T) gained after the digital camera maker nudged up its profit outlook, but trade generally lacked direction as investors awaited more corporate earnings reports.

Japan's bonds rose for a second day after a government report showed retail sales declined for a 10th month, spurring demand for the relative safety of government debt.

Benchmark 10-year yields fell from the highest level this month after the Trade Ministry said sales extended their losing streak to the longest since 2003, suggesting the recession in the world's second-largest economy may be prolonged. Demand for bonds also increased after a U.S. report yesterday showed consumer confidence fell more than economists forecast following an increase in unemployment.

Japan's retail sales fall 3 percent in June from a year earlier, after dropping a revised 2.7 percent the previous month, the Trade Ministry said. Economists expected a 2.5 percent decline, according to a Bloomberg News survey.

Shares of Canon Inc. rose sharply, gaining as much as 70 yen to hit 3,440 yen, following the firm raising its guidance for the company's group operating profit for the year through December. The upgrade was due to a 5% increase in the sales forecast for digital single-lens reflex cameras.

Among other stocks in the electric machinery space, Advantest, Taiyo Yuden, Hitachi and Mitsubishi Electric Corp. are trading with notable gains.

Steel and non-ferrous metals stocks are mostly trading in the red. Automobile stocks are exhibiting weakness. Machinery stocks are also seen struggling for support. 

HSI 20469.1 -155.44 -0.75% . (08.36 AM IST).

Hong Kong shares dropped early Wednesday, as an overnight retreat in crude-oil prices and a broad decline on Wall Street triggered profit-taking after sharp recent gains. The Hang Seng Index dropped 1.1% to 20,405.81, and the Hang Seng China Enterprises Index lost 1.3% to 12,269.03. However, shares of cement maker BBMG Corp. /quotes/comstock/22h!2009 (HK:2009 0.00, 0.00, 0.00%) surged on its debut, opening trade at 10.20 Hong Kong dollars($1.32) compared with an initial public offering price of 6.38 Hong Kong dollars. Trading was heavy after the $763 million issue was oversubscribed several times over, with 282 million shares having changed hands in the first few minutes of trade.

China State Construction Engineering Corp. soared on its first trading day in Shanghai after the builder sold stock in the world's largest initial public offering in 16 months.

Shares of Beijing-based State Construction, China's largest housing contractor, jumped as much as 90 percent to 7.96 yuan and traded at 7.12 yuan at 10:21 a.m. local time, valuing the company at 213.6 billion yuan ($31 billion).

Chinese listed banks, which have lent record high amounts in the first half, are likely to report lower profit growth in the period due to narrowing interest spreads and higher provisioning requirements, industry analysts said.

"We are expecting a 7 to 8 percent year-on-year profit fall among the 14 listed banks in the first half-year," said Wang Liwen, banking analyst with Shanghai-based Guotai Junan Securities Co, citing stretched interest spreads as the major reason.

In 2008, the net interest rate spread for banks ranged from 2.45 percentage points to 3.62 percentage points, with the average figure hovering around 3 percentage points. This year, as the government cut interest rates several times to spur economic growth amid the global financial crisis, the net interest rate spread is expected to be lower, at around 2.36 percentage points.

"A drop of 0.7 percentage points in the average net interest rate spread could mean some 7-billion-yuan decrease in the interest yield for each trillion yuan of new loans," said Wang.

Chinese banks extended a record 7.37 trillion yuan of new loans in the first half, triple the amount offered in the same period a year earlier and 47 percent more than the government's full-year target, after lending restrictions were eased in November to stem an economic slowdown.

However, most securities firms' reports said the country's 14 listed banks might post an average profit decrease ranging from 6 percent to 10 percent year-on-year in the first six months.

According to Wind Info, a financial data provider, the 14 listed banks reported a net profit of 232.7 billion yuan in the first half of 2008, an increase of 73 percent year-on-year. But this year, the net profit could probably stand at 210 billion yuan, down 10 percent on a yearly basis.

Bank of Ningbo, for instance, on July 14 announced no more than a 5-percent decease in net profit in its pre-released semi-annual report to the Shenzhen bourse. It is the first Chinese listed bank to report a profit fall in the first half.

Wang Yifeng, an analyst at TX Investment Consulting, said the improved provision coverage ratio requirement might also cripple profits at listed banks.

To prevent potential risks arising from the lending spree, China Banking Regulatory Commission raised the minimum provision coverage ratio requirement to 150 percent from 130 percent earlier this year.

"The increase will mainly eat into the profits of several large State-controlled banks as they are still not up to the new requirements," said Wang.

But as the squeezed spreads bottom out in the second half, most analysts said listed banks would still post positive growth for the whole year.

"Thanks to the widened interest rate spreads and lower loan cost in the following months, we are expecting a 10-percent growth in profits overall this year," said Liu Yinghua, an analyst with Shenzhen-based Ping An Securities.

Shares in BBMG Corp, which begin formal trading today, are tipped to gain heavily on their debut after the Beijing cement maker surged more than 60 per cent in the grey market yesterday.

Mainland air traffic accelerated at the fastest pace in more than three years last month, lifted by Beijing's stimulus package, a rare bright spot for the debt-laden aviation industry.

The central government will cut mainland petrol and diesel prices by about 3 per cent from today, in the latest round of adjustments to keep in line with global crude oil prices.

Bank of China, which doled out the most loans among Chinese banks in the first half, plans to keep expanding credit unless the government clamps down on the mainland's record lending boom.

Shares of Bossini International Holdings surged 46.48 per cent yesterday after the casual-wear maker and retailer said its controlling shareholder was in the process of selling his stake.

Mainland developers are hoarding sites bought at the market peak in 2007, despite the recent rise in property prices.

Privately owned Geely Automobile Holdings (SEHK: 0175) is preparing to launch its first car specially designed for the Western European market, ramping up ambitions to become the Toyota Motor Corp of the coming decade.

Hanison Construction Holdings, the investment and construction arm of HKR International, has turned active in the property market with its plan to launch four development projects this year.

A 20 per cent rebound in average property prices in Hong Kong since the beginning of the year has triggered concerns a price bubble may be forming, and similar alarm bells have begun ringing on the mainland, where regulators have started expressing concerns that prices are rising too fast.

Hong Kong stocks gained nearly 400 points yesterday, hitting a new 10-month high, as hot money continued to flow into the market to chase the promise of China's economic growth.

China will work with the United States to resolve their remaining differences on trade and foreign-exchange rates, Vice Premier Wang Qishan said yesterday.

Macau's residential market is showing signs of improvement because of low borrowing costs and surges in the stock market, according to property consultant Jones Lang LaSalle.

CC Land Holdings (1224) is raising up to HK$2.05 billion through a top-up placement, riding on a wave of upbeat market sentiment and liquidity.

Shares in casual clothing retailer Bossini International (0592) surged by 46.5 percent yesterday on reports that its controlling shareholder is negotiating to sell his stake.

China Unicom (0762) has reached a deal with Apple to become the only operator in the mainland to offer the third-generation iPhone for the next three years, according to mainland media reports. 

Latest News:

Microsoft, Yahoo search deal imminent: reports

The long-anticipated search and advertising partnership between Microsoft Corp. and Yahoo Inc. is imminent, and a related announcement is expected as soon as Wednesday, according to reports published late Tuesday.
 
INVESTMENT VIEW
Essar Shipping: A Play On The Revival Of Global Economic Growth
BSE 500630; CMP Rs 65.00
  
Essar Shipping is a multi-pronged play on shipping, ports, gas terminals and oil drilling that only a multitude of corporates can offer. With just the coal trade between India and Indonesia expected to rise up to 100 mn tpa from 2013 onwards, and burgeoning bulk imports from Australia, China and Liquid cargoes from the Gulf- Essar Shipping's fleet of bulk carriers, tankers and VLCCs will be straining on the leash to take part in this intra-Austral-Asia trade. 

Add to this Essar's fleet of oil drilling rigs and we have an entity that not only will handle iron ore and coal imports for captive usage at Hazira (destined for Essar Steel), crude oil imports at Vadinar (for Essar Oil) and Oil Rigs that will sooner or later dot the sea shelves across the Indian coastline.

The corporate has been hit hard by the economic down turn of the past two years, but there is an equal probability that this downturn will reverse over the next 2 years. The stock too has fallen from Rs 250 about 18 months ago to just Rs 65, giving investors an opportunity to re-enter a sector for which they would otherwise have to buy 4-5 stocks for a similar exposure.

The Equity of Essar Shipping is tightly controlled with the Ruia entities holding 84 per cent of the stock, and FIIs holding another 8 per cent. The public float is just 8 per cent. The marquee names that own Essar Shipping include CLSA with 74.81 lakh shares (1.22 per cent), TIE 88.46 lakh (1.44 per cent), ABN 1.14 crore (1.85 per cent) and Matterhorn Ventures 2.13 crore (3.46 per cent). 

It may be a far-fetched idea but the Ruia's may also go for a de-listing of Essar Shipping's shares just as they did with Essar Steel some time back. All in all, the stock offers a good entry point.

(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