INTRADAY calls for 12th Nov 2009
Buy Cipla-304 for 310-317+ with sl 300
Buy STER-857 for 880-899+ with sl 845
Buy EIDparry-333 for 345+ with sl 329
Buy Voltas-167 for 180+ with sl 163
Buy SCI-149 for 155-161+ with sl 145
Positional
Buy TTML-26.75 for 31.50+ with sl 25.15
Breakout
Buy Wipro-616 for 647+ with sl 608
Strong & Weak futures
This is list of 10 strong futures:
Ashok Ley, Yes Bank, Neyveli Lignite, Sesa Goa, Mphasis, Dr Reddy, India Hotels, M&M, Crompton Greaves & Lic house.
And this is list of 10 Weak futures:
RCom, Adlabs Film, EKC, Tata Comm, Idea, Suzlon, Aban Off shore, GMR Infra, TTML & Bharti Airtel.
Nifty is in Down trend
NIFTY FUTURES (F & O):
Rally may continue up to 5034-5036 zone for time being.
Rally may continue up to 5034-5036 zone for time being.
Support at 4975 & 5000 levels. Below these levels, expect profit booking up to 4914-4916 zone and thereafter slide may continue up to 4855-4857 zone by non-stop.
Buy if touches 4797-4799 zone. Stop Loss at 4738-4740 zone.
On Positive Side, cross above 5093-5095 zone can take it up to 5151-5153 zone by non-stop. If crosses & sustains this zone then uptrend may continue.
Short-Term Investors:
1 Week: Bullish with a SL of 4918.10. Target at 5165.00.
1 Month: Bullish with a SL of 4620.00. Target at 6289.00.
3 Months: Bearish with a SL of 5080.00. Target at 2951.00.
1 Year: Bullish with a SL of 2575.00. Target at 6201.65.
BSE SENSEX:
Buy with a SL of 16583.56. Target at 17210.06.
Buy with a SL of 16583.56. Target at 17210.06.
Short-Term Investors:
1 Week: Bullish with a SL of 16606.95. Target at 17493.17.
1 Month: Bullish with a SL of 14937.03. Target at 18381.96.
3 Months: Bearish with a SL of 17361.47. Target at 12425.52.
1 Year: Bullish with a SL of 15197.60. Target at 18289.88.
Tata Steel
-Okays exchange offer of new FCCB for $875 million CARS Programme
-Alert: Company raised $875 million via convertible alternative reference securities
-Alert: CARS were due in 2012; convertible into ordinary shares
-New FCCBs convertible in 2014, have coupon of 4.5%
-New FCCB issue to help lengthen debt maturity, reduce cost
-New FCCB issue to help reduce future repayment obligations
-FCCB convertible at Rs 605.53/share at Rs 46.36/$
-FCCB conversion at 15% premium to current market price
MTNL - From Sources
-Google in talks with MTNL To Jointly Bid For WiMax spectrum
-Google keen on holding 50% in JV with MTNL: Sources
Essar Steel completes Shree Precoated steel assets buy
-Pramod Jain and Pranidhi Holdings make voluntary open offer for 20% in Golden Tobacco at Rs 101/sh ((CMP Rs 104)) ((Golden Tobacco is Sanjay Dalmia promoted company))
-Tata Power to continue to sell stake in telecos to fund expansion – Mint
-PM endorses big reforms for Railways – Mint ((major changes to include creation of independent tariff regulator))
-Edelweiss looking to acquire Anagram Capital to mark its presence in retail broking – DNA ((Both managements denied any such plans))
-Highway toll set to be slashed, govt may also review annual toll revisions – DNA ((Noida Toll Bridge, IRB Infra, Roman Tarmat in focus))
Solar draft policy to be unveiled on Saturday, several MNC & Indian companies eyeing opportunity, which World Bank estimates to be over $42 billion in 10 years – DNA
-Peninsula Land plans to sell office unit, also considering Rs 200 crore QIP – DNA
-IDBI Bank to cut deposit rates by 25-50 bps from November 16
-Board meets: Usha Martin on fund raising
-Ex-rights: City Union Bank 1:4 @ Rs 6
-Ex-split: Hindusthan National Glass from Rs 10 to Rs 2
BUY:
Buy GRAVITY (I) (BSE Cash & BSE Code: 532015):
Buy with a Stop Loss of 7.25. Above 9.43, it will zoom.
Buy GRAVITY (I) (BSE Cash & BSE Code: 532015):
Buy with a Stop Loss of 7.25. Above 9.43, it will zoom.
Today: Expect Profit Booking.
1 Week: Bearish, surprisingly going up.
1 Month: Bullish, as per current market conditions.
3 Months: Bearish, surprisingly going up.
1 Year: Bullish, as per current market conditions.
Buy BRAWN PHARMACEUT (BSE Cash & BSE Code: 530207)
Buy with a Stop Loss of 18.80. Above 27.00, it will zoom.
Today: May hold on gains.
1 Week: Bearish, surprisingly going up.
1 Month: Bullish, as per current market conditions.
3 Months: Bullish, as per current market conditions.
1 Year: Bullish, as per current market conditions.
FUNDS DA
| FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| FII | 11-Nov-2009 | 3034.51 | 2172.67 | 861.84 |
| DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores) | ||||
| Category | Date | Buy Value | Sell Value | Net Value |
| DII | 11-Nov-2009 | 1458.97 | 1368.45 | 90.52 |
SPOT LEVELS
 | 4973.95 | ( -0.60 %) | -30.00 |  |
| 1 | 2 | 3 | ||
| Resistance | 5057.08 | 5110.22 | 5203.73 | |
| Support | 4910.43 | 4816.92 | 4763.78 | |
 | 16800.34 | ( -0.29 %) | -49.26 | | |
| 1 | 2 | 3 | |||
| Resistance | 17023.20 | 17196.81 | 17505.81 | ||
| Support | 16540.59 | 16231.59 | 16057.98 | ||
Interesting findings on web:
U.S. stocks extended a global advance, sending the Standard & Poor's 500 Index to a 13-month high, as China's industrial production surged and Federal Reserve policy makers signaled interest rates will remain at a record low. Gold climbed to an all-time high.
U.S. stocks extended a global advance, sending the Standard & Poor's 500 Index to a 13-month high, as China's industrial production surged and Federal Reserve policy makers signaled interest rates will remain at a record low. Gold climbed to an all-time high.
Stocks ended higher Wednesday, with the Dow industrials finishing at a 13-month high for third straight day, after investor optimism rose on the expectation that interest rates would remain low for some time.
The Dow and the Standard & Poor's 500 index closed at 13-month highs on Wednesday as an upbeat forecast from a top homebuilder and data from China pointed to a strengthening global economy.
The Dow's advance was its sixth straight as comments from top Federal Reserve officials suggesting low interest rates will stay for some time added to the positive tone.
The Dow Jones industrial average .DJI was up 44.29 points, or 0.43 percent, at 10,291.26. The Standard & Poor's 500 Index .SPX was up 5.50 points, or 0.50 percent, at 1,098.51. The Nasdaq Composite Index .IXIC was up 15.82 points, or 0.74 percent, at 2,166.90.
RUSSELL592.715.74+0.98%
TRAN3988.071.09+1.81%
UTIL375.99-1.21-0.32%
S&P 100509.922.65+0.52%
S&P 400701.985.23+0.75%
NYSE7155.3628.94+0.41%
NAS 1001782.959.78
Bank of America Corp. and Home Depot Inc. led the Dow Jones Industrial Average to its highest close since October 2008. Toll Brothers Inc. jumped 16 percent, the most in 17 years, to lead a rally in homebuilders after orders surged and cancellations slowed. Benchmark equity indexes pared gains as a rebound in the dollar snuffed out most of an advance in commodities.
The Dow has gained more than 500 points in the past six sessions but some market pros say it may be maxing out.
"The rally in the markets is a faux rally—there's nothing that is substantiating the recent run-up. It's based on pure emotion and momentum, and it's triggered by a 'herd mentality' that people are going to miss out on future gains if they don't jump in now—regardless of the fundamentals, or lack thereof," said Todd Schoenberger, managing director of LandColt Trading in San Antonio. "Until spending increases, stock valuations will continue to be vulnerable."
"You got people out there saying the bear market rally's over," said Jeffrey Saut, chief investment strategist at Raymond James & Associates in St. Petersburg, Florida, which manages $214 billion. "They're smoking dope."
Robert Brusca, chief economist at Fact and Opinion Economics, said investor optimism seemed to be overriding negative sentiment, noting that "the markets were able to shake off a somewhat disappointing jobs number last week."
Most investors "are more optimistic than the pessimists that are making all the news," Brusca said. "I think the health of the market is better than a lot of the technicians give it credit for."
Data before the open showed Chinese factory output rose to a 19-month high in October. Investors bet the data heralded growing demand in the world's third-largest economy.
"There was fairly bullish news coming from China with respect to its industrial production, which has exerted upward pressure on commodities and commodity-related stocks," said Matt Kaufler, portfolio manager and equity analyst at Clover Capital Management in Rochester, New York.
Eighty percent of S&P 500 companies that released results have exceeded the average analyst estimate for third quarter earnings, a record in Bloomberg data going back to 1993, even as profits slumped for a record ninth straight quarter.
Federal Reserve Bank of Dallas President Richard Fisher said yesterday that economic growth and inflation may persist below ideal levels into 2011, making the central bank's current interest-rate stance "appropriate." San Francisco Fed President Janet Yellen raised the prospect of a "jobless recovery" in a speech in Phoenix, while Dennis Lockhart, who heads the Atlanta Fed, predicted a "relatively subdued pace of growth" this quarter and beyond.
Fed officials last week reiterated a pledge to keep the benchmark interest rate near zero for an "extended period."
"The Fed continues to believe that the biggest economy in the world can't handle rates above 0.25 percent," Peter Boockvar, an equity strategist with Miller Tabak & Co., wrote in an e-mail to clients. "'Damn the torpedoes, full speed ahead' will remain policy."
"People are comfortable with the Fed, that they won't do anything stupid," said Harry Clark of Clark Capital Management. "They've said the same thing many times during this recession, and I don't see them making waves anytime soon."
Clark said he expects that the Fed won't change its policy until the second quarter of 2010, but the record-low rates should support the market until then.
Clark agreed, saying investors "are realizing things aren't as bad as the headlines sound, with people pooh-poohing the green shoots. They're accepting that the fundamentals are coming along."
Clark is bullish for the short term -- he said he expects the market to sustain gains through January.
"I think we'll have one more decent [market dip] next year, maybe for a couple quarters, when the Fed moves up the interest rate," Clark said. "Then we'll have a correction and that should largely end the big swings, beginning a steady increase."
With interest rates expected to remain low, corporate earnings season behind us and commodity prices rising, Clark said he can't "see a reason for a stumble" barring major unexpected news.
Steven Rogé, portfolio manager at R. W. Rogé & Company, is more cautious.
"Some investors are forward-looking, saying the picture is not as dire as it was," Rogé said. "But at the same time a lot of money managers are still looking in the rearview mirror at lagging indicators like unemployment."
But Rogé noted "every post-World War II recession has been a 'jobless recovery,'" and he expects the turnaround to follow historical patterns.
The trend will be upward throughout the year, with "some bumps in the road," he said.
The MSCI Asia-Pacific Index rose for a fourth day, adding 0.6 percent. Production in China rose 16.1 percent from a year before, the most since March 2008, the statistics bureau said today. The trade surplus almost doubled from September, to $24 billion, as a drop in exports eased.
Separately, Japanese machinery orders, an indicator of business investment in three to six months, climbed 10.5 percent from a month earlier, according to the Cabinet Office in Tokyo. The median estimate of 25 economists surveyed by Bloomberg was for a 4.1 percent increase.
"This rally has legs," said Howard Ward, who helps oversee $21.3 billion as chief investment officer for growth equities at the Gamco Global Growth Fund in Rye, New York. "The data, after the laundry list of positive things that we learned last week about the economy, really reinforces the notion that the recovery is for real. Investors who have been sitting on the sideline are getting nervous and putting money to work."
Financial shares in the S&P 500 climbed 1.4 percent as a group, the steepest gain among 10 industries.
Financial, material and IT stocks were the biggest gainers.
Goldman Sachs Group Inc. added 1.9 percent to $179.85, Bank of America rallied 2.5 percent to $16.43, the top gain in the Dow, and Wells Fargo & Co. climbed 2.5 percent to $28.80.
All 12 shares in a gauge of homebuilders advanced, sending the index up 6.9 percent for its biggest gain since May.
Toll Brothers, the nation's largest luxury homebuilder, rallied $3.02 to $21.41 after saying orders surged 42 percent in the fiscal fourth quarter and adjusted earnings and sales topped analysts' estimates.
Pulte Homes Inc., KB Home, Lennar Corp. and D.R. Horton Inc. each rose at least 5.7 percent for four of the top five gains in the S&P 500. Home Depot, the largest home-improvement retailer, climbed 1.8 percent.
Newmont Mining Corp., the largest U.S. gold producer, added 1.6 percent to $51.24. The precious metal rose to a record $1,119.10 an ounce on demand for a hedge against further weakness in the U.S. dollar.
Regeneron Pharmaceuticals Inc. rose 20 percent to $18.95. The drugmaker said it expanded its existing agreement with Paris-based Sanofi-Aventis SA to develop drugs to treat pain, cancer and arthritis in a deal worth up to $1.28 billion.
Smithfield Foods Inc. gained 9.5 percent to $17.12. The world's biggest pork processor was raised to "buy" from "hold" at Deutsche Bank AG, which cited a reduction of breeding herd in the U.S. and Canada as well as improving demand from overseas.
Flowers Foods Inc. dropped 5.9 percent to $22.45. The baker with brands such as Nature's Own reported third-quarter earnings that trailed the average analyst estimate. The company forecast adjusted earnings for 2009 of at most $1.40 a share, lower than the average analyst estimate of $1.43.
Macy's Inc. fell 8.1 percent to $17.86. The second-biggest U.S. department-store reported a third-quarter loss and forecast full-year earnings that trailed analyst estimates as sales fell.
Priceline.com Inc. fell 3.6 percent to $196.80, the first decline in eight days. Credit Suisse AG downgraded the online travel agency to "neutral" from "outperform."
Clearwire Corp. dropped 15 percent to $6.14. The U.S. wireless carrier building out a high-speed network will have to raise $2 billion to $3 billion over the next two years as the company's cash consumption picks up, Bank of America analysts said.
AIG's (AIG, Fortune 500) Robert Benmosche threatened to step down as CEO of the bailed-out insurer, telling the company board that he's "done" because of government restraints, according to the Wall Street Journal, which cited unidentified people familiar with the matter.
Wal-Mart [WMT 52.95 0.64 (+1.22%) ] shares rose 1.3 percent after the discount giant said it will offer a $100 gift card to shoppers who buy BlackBerrys and an assortment of devices that go with the smartphones. Shares of Research In Motion [RIMM 64.72 1.05 (+1.65%) ], which makes the BlackBerry, rose 1.7 percent.
Garmin shares [GRMN 29.51 0.68 (+2.36%) ], which have been hammered in recent weeks over the Droid phone's free navigation system, have started to crawl back in the past few days, up 2.4 percent today.
Among other reasons for renewed optimism: upbeat comments by executives of both FedEx [FDX 82.47 0.34 (+0.41%) ] and UPS [UPS 58.08 1.23 (+2.16%) ] about the upcoming holiday season.
In deal news, United Technologies [UTT Unavailable () ] reportedly is close to purchasing a unit of General Electric [GE 15.81 0.03 (+0.19%) ] for $1.8 billion, Bloomberg reported.
GE, the parent of CNBC, is currently in talks with Comcast [CMCSA 15.10 0.25 (+1.68%) ], to sell its stake in NBC Universal to the cable company.
Ford [F 8.34 0.10 (+1.21%) ] was back in the spotlight after China's Zhejiang Geely Holding Group, vying to buy Ford Motor's loss-making Volvo unit, said it has developed a turnaround plan under which it hopes to double Volvo's sales to near 1 million vehicles a year.
After the closing bell, shares of network equipment maker 3Com Corp (COMS.O) rose 34 percent to $7.64 after Hewlett-Packard Co (HPQ.N) said it agreed to buy 3Com for $2.7 billion.
The Hewlett-Packard announcement could give investors reason to extend the stock market's gains.
The technology sector is "where the concentration of deal flow is, and it seems to me that might be supportive of the market at this juncture," Rob Stein, managing partner of Astor Asset Management in Chicago, said.
Also after the close shares of Applied Materials (AMAT.O) rose 2.1 percent to $13.53 after the company reported quarterly results.
The Dollar Index, which tracks the currency against major U.S. trading partners, added 0.1 percent after earlier touching a 15-month low as signs of a global recovery and bets that the Fed will keep borrowing costs low spurred demand for higher- yielding assets.
The Chicago Board Options Exchange Volatility Index ended its seven-day losing streak even as stocks rose. The gauge, which measures the cost of using options as insurance against declines in the S&P 500, climbed 0.9 percent to 23.04.
Oil,Gold & Currencies:
The price of crude oil rose 23 cents to settle at $79.28 a barrel.
December gold rose $12.10 to settle at $1,114.60 an ounce, after climbing to a record $1,118.50 an ounce earlier in the session.
The dollar was higher against the euro, British pound and Japanese yen, rising off 15-month lows against major international currencies.
Bonds:
U.S. bond markets and government offices were closed Wednesday for Veterans Day, but stock and commodity markets were open as usual.
What to expect:
THURSDAY: FDA meeting on Internet advertising starts; Buffett/Gates/CNBC Town Hall meeting; Geithner at APEC meeting in Singapore; weekly mortgage applications; weekly jobless claims; weekly crude inventories; Treasury budget; Earnings from Wal-Mart, Disney
FRIDAY: NY Fed conference on financial intermediation; international trade; import/export prices; consumer sentiment; Nicholas Cosmo court appearance; Fed's Evans speaks; Earnings from JCPenney, Abercrombie
Other Headlines:
Australian Employers Unexpectedly Hire 24,500; Currency Jumps on Rate Bets
Hewlett-Packard to Acquire 3Com for $2.7 Billion as Hurd Takes On Cisco
Japan Credit Default Swaps Seen Unraveling as Aiful Defers Payment on Debt
Geithner Presses for Market-Set Exchange Rates as APEC Finance Chiefs Meet
Japan Producer Prices Fall More-Than-Estimated 6.7%, 10th Monthly Decline
Lehman Trustee Seeks Part of $18 Billion Raised by Firm to Repay Customers
Obama, Security Advisers Meet as Decision on Afghanistan Troops Draws Near
Kidnapped Irish Priest Is Freed by Muslim Rebels in Southern Philippines
Fort Hood probe spotlights Web-savvy preacher
AIG's Benmosche "totally committed" to company
Motorola eyes $4.5 billion home/networks unit sale: sources
Lou Dobbs announces last broadcast on CNN
Northeastern cities perform best in job growth
Dollar Trouble, Oil's Bubble Could Derail Recovery
Why Stronger Chinese Yuan Would Benefit US Investors
How the Droid and Google Threaten the GPS Makers
Abbas resists U.S. pressure to resume peace talks
Hyosung Withdraws Bid for South Korea's Hynix Semiconductor; Shares Surge
Citic Pacific Signs China Mill Sales Accords for $4 Billion Iron Ore Mine
Brazil's Integrated Power Grid Vulnerable to Massive Outages, Agency Says
Asia:
Nikkei 225 9,915.25 +43.57 ( +0.44%). (07.57 AM IST)
HSI 22566.5 -60.71 -0.27%. (07.58 AM IST)
SSE Composite 3185.00 + 0.31. (07.59 AM IST)
Asian stocks rose for a fifth day, led by banks and automakers, on speculation central banks will support the economic recovery by keeping borrowing costs down.
Mitsubishi UFJ Financial Group Inc., Japan's largest bank by market value, gained 1.2 percent as Federal Reserve policy makers signaled interest rates will remain at a record low. Rio Tinto Group, the world's No. 3 mining company, climbed 1.6 percent in Sydney as metal prices advanced. Honda Motor Co., Japan's second-biggest carmaker, jumped 2.3 percent after Goldman Sachs Group Inc. recommended buying the stock.
"Excess liquidity supported by low interest rates should be an encouraging factor for the stock market," said Mitsushige Akino, who oversees the equivalent of $450 million in assets in Tokyo at Ichiyoshi Investment Management Co.
The MSCI Asia Pacific Index rose 0.4 percent to 119.25 as of 9:51 a.m. in Tokyo, extending its five-day increase to 4 percent. The gauge has surged 69 percent from a more than five- year low on March 9 on signs stimulus policies around the world are helping to revive the global economy.
Japan's Nikkei 225 Stock Average gained 0.6 percent to 9,923.73 in Tokyo. New Zealand's NZX 50 Index rose 0.4 percent. Australia's S&P/ASX 200 Index added 0.3 percent as the government reported an unexpected increase in jobs last month.
The Kospi Index climbed 0.8 percent in South Korea, where the nation's central bank is expected to leave its benchmark interest rate unchanged following a meeting today.
Policy Makers
Futures on the Standard & Poor's 500 Index added 0.1 percent. The measures advanced 0.5 percent to a 13-month high in New York yesterday, as China's industrial production surged and after comments by Fed policy makers.
Federal Reserve Bank of Dallas President Richard Fisher said Nov. 10 that economic growth and inflation may persist below ideal levels into 2011, making the central bank's current interest-rate stance "appropriate."
San Francisco Fed Bank President Janet Yellen raised the prospect of a "jobless recovery" in a speech in Phoenix, while Dennis Lockhart, who heads the Atlanta Fed, predicted a "relatively subdued pace of growth" this quarter and beyond.
Mitsubishi UFJ gained 1.2 percent to 516 yen. National Australia Bank Ltd., the country's biggest lender to businesses, added 1.1 percent to A$30.60.
Rio Tinto gained 1.6 percent to A$69.72. Mitsui & Co., which gets 30 percent of sales from commodities, climbed 2.2 percent to 1,205 yen in Tokyo.
Record Gold Price
Gold added 0.4 percent in New York to $1,119.50 an ounce today, after surging earlier to a record $1,120.90. It was the ninth day of gains for the precious metal's futures. The London Metals Index, a measure of six metals including copper and zinc, added 0.2 percent yesterday.
The MSCI Asia Pacific Index's rally since March has driven the average price of stocks in the gauge to 22 times estimated profit, compared with 17 times for the S&P 500 and 15 times for the Dow Jones Stoxx 600 Index.
Honda Motor climbed 2.3 percent to 2,920 yen as Goldman added the stock to its "conviction buy" list. The company said yesterday it is developing a small car for India, which prefers compact cars.
FamilyMart Co., a Japanese convenience-store operator, advanced 4.4 percent to 2,595 yen. The Nikkei newspaper said the company and its top shareholder, Itochu Corp., plan to purchase Am/pm Japan Co., a competitor, for about 10 billion yen ($111 million).
Rupee:
The partially convertible rupee INR=IN closed at 46.29/30 per dollar, its highest since Oct. 20 and 0.5 percent stronger than the previous close of 46.50/51.
INDIA:
India's benchmark stock index rose to a three-week high, led by metals producers after commodity prices rallied on hopes of a stronger global economic recovery.
Sterlite Industries (India) Ltd., the nation's No. 1 copper and zinc producer, surged 6.5 percent after copper climbed to the highest level this month. Tata Motors Ltd., the No. 1 truckmaker, increased 4.7 percent after car sales in India rose 34 percent in October from a year earlier.
"There are signs of stabilization in the global markets," said Vaibhav Sanghavi, a director at Ambit Capital Ltd. in Mumbai, who manages funds for wealthy individuals. "We hope that India's industrial production numbers, which will be released tomorrow, will be better than forecast."
The Bombay Stock Exchange's Sensitive Index, or Sensex, added 409.04, or 2.5 percent, to 16,849.6. The S&P CNX Nifty Index on the National Stock Exchange climbed 2.5 percent to 5,003.95. The BSE 200 Index rose 2.4 percent to 2,099.24.
Sterlite jumped 6.5 percent to 857.65 rupees. Copper for three-month delivery rose 2 percent to $6,660 a metric ton on the London Metal Exchange, the highest price since Oct. 30. December-delivery copper gained 1.9 percent to $3.0185 a pound on the New York Mercantile Exchange's Comex division.
Tata Steel Ltd., the biggest producer of the alloy, advanced 4.3 percent to 526.55 rupees. Steel Authority of India Ltd., the No. 2 producer, added 1.9 percent to 179 rupees.
The Dollar Index, a six-currency gauge of the greenback's performance, fell as much as 0.3 percent to its lowest level since August last year. A weaker U.S. currency makes dollar- priced metals cheaper to those with other monies.
Metal Prices
Hindalco Industries Ltd., the biggest aluminum producer, gained 4.2 percent to 131.85 rupee. Aluminum gained 0.8 percent to $1,975 a ton on the LME.
China's industrial production climbed 16.1 percent in October, the most since March 2008, the statistics bureau said today. Japanese orders gained more than twice the pace economists estimated in September, signaling that a recovery in the world's second-largest economy may be sustained.
India's industrial output rose 7 percent in October from a year earlier, according to the median estimate of 23 economists surveyed by Bloomberg News. That compares with a 10.4 percent pace in the previous month.
Car Sales
Tata Motors gained 4.7 percent to 621.6 rupees after domestic car sales increased 34 percent to 132,615 vehicles in October, the Society of Indian Automobile Manufacturers said in New Delhi today. Companies sold 42,562 buses and trucks last month, compared with 28,019 a year ago, while two-wheeler sales jumped to 750,229 from 678,245. Mahindra & Mahindra Ltd., India's largest maker of sport-utility vehicles and tractors, rose 3 percent to 1,032.9 rupees. Hero Honda Motors Ltd., India biggest motorcycle maker, climbed 1.1 percent to 1,513.7 rupees.
NMDC Ltd., India's largest iron-ore producer, extended gains for the sixth day in Mumbai after the steel ministry said it will next month initiate a plan to sell a stake in the company. The shares jumped 6.8 percent to 461.7 rupees, extending yesterday's 20 percent gain.
"NMDC is on the radar for disinvestment, which may be one of the government's largest," said Sejal Jhunjhunwala, an analyst at Way2Wealth Brokers Pvt. in Mumbai.
The stake sale in Hyderabad-based NMDC will fetch as much as 130 billion rupees ($2.8 billion) at current prices, the steel ministry said on Nov. 9. The government owns 98.38 percent of the company.
Developing Drugs
Jubilant Organosys Ltd., a maker of drugs and chemicals, surged the most in more than 9 1/2 years after saying it plans to research and develop drugs with Duke University in the U.S.
The shares climbed 20 percent to 273.55 rupees, the most since May 4, 2000, making it today's best performer on the Bombay Stock Exchange BSE500 index.
Jubilant and Durham, North Carolina-based Duke University "intend to monetize successful technologies by licensing or partnering," and will get milestone and royalty payments from a five-year collaboration to develop four to five technologies, according to a joint statement posted on Jubilant's Web site yesterday.
Overseas funds bought a net 6.5 billion rupees of Indian stocks Nov. 9, the regulator said on its Web site. The funds have bought 697.6 billion rupees of the nation's equities this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.
Pyramid Saimira Theatre Ltd. sank 9.8 percent to 19.75 rupees after the Securities and Exchange Board of India yesterday barred the entertainment company from dealing in the securities market for seven years.
Optimism about world economy underpins rise
Weaker dollar pushing funds to Indian stocks - trader
Indian shares rallied 2.5 percent on Wednesday, led by Reliance Industries Ltd (RELI.BO: Quote, Profile, Research) and Infosys Technologies (INFY.BO: Quote, Profile, Research), on renewed optimism about the world economy. Firmer global markets on hopes U.S. interest rates will remain near zero for some time and robust Chinese factory output data helped set the ground for the rise, traders said.
Energy giant Reliance Industries, which has the heaviest weight on the main index, climbed 2.7 percent to 2,107.95 rupees, taking its gains so far this month to 9.1 percent. The stock had shed 12.3 percent in October. The 30-share BSE index .BSESN closed up 2.49 percent, or 409.04 points, at 16,849.60, taking its gains so far in November to 6 percent. All of its components gained.
Foreign funds have moved a net $14.5 billion into Indian stocks so far this year, propelling the benchmark index up nearly three-quarters in the period.
Software companies rose after the Economic Times quoted the president of industry body Nasscom as saying the industry was expected to grow 4-7 percent in the current fiscal year and return to growth of more than 10 percent next year. Top outsourcer Tata Consultancy (TCS.BO: Quote, Profile, Research) rose 3.3 percent, second-ranked Infosys climbed 4.1 and third-ranked Wipro gained 3.9 percent.
Auto companies firmed after October car sales rose the fastest in over two years, bolstering hopes the industry was back on track for robust growth.
Top vehicles maker Tata Motors (TAMO.BO: Quote, Profile, Research) raced 4.7 percent to 621.55 rupees while rival Mahindra & Mahindra (MAHM.BO: Quote, Profile, Research) closed 2.9 percent higher at 1,032.20 rupees.
ICICI Bank (ICBK.BO: Quote, Profile, Research) firmed 3.4 percent to 924.65 rupees, a day after its chief executive said bad loans had peaked and loan quality should improve.
Metals stocks rose on improving outlook for base metal prices, Choksey said. Sterlite Industries (STRL.BO: Quote, Profile, Research) rose 6.5 percent to 858.05 rupees, while Tata Steel (TISC.BO: Quote, Profile, Research) and Hindalco (HALC.BO: Quote, Profile, Research)climbed 4.3 percent and 3.9 percent respectively.
In the broader market, gainers outnumbered losers in a ratio of 1.7:1 on better volume of 425 million shares. The 50-share NSE index .NSEI closed 2.5 percent higher at 5,003.95. It closed above 5,000 for the first time since Oct. 21.
Rural Electrification Corp (RURL.BO: Quote, Profile, Research) rose 5.5 percent to 228.80 rupees after the power sector lender said it received the federal nod for its follow-on public offer of 171.73 million shares.
The other contenders for follow-on offers Steel Authority of India (SAIL.BO: Quote, Profile, Research), NMDC (NMDC.BO: Quote, Profile, Research) and Shipping Corp of India (SCI.BO: Quote, Profile, Research) rose 1.7 percent to 8.2 percent. * State-run oil marketing companies Hindustan Petroleum (HPCL.BO: Quote, Profile, Research), Bharat Petroleum (BPCL.BO: Quote, Profile, Research) and Indian Oil Corp (IOC.BO: Quote, Profile, Research) edged 0.5-1.9 percent lower as oil prices rose above $79 a barrel, which would hurt them as they are forced to sell products at mandated discounts.
Total market turnover (BSE+NSE) was over Rs 1,10,800 crore.
Metals and the IT stocks were among the top gainers. The telecom stocks which were beaten down badly were seen attracting some value buying at lower levels. While, the high beta Realty stocks which were heavily offloaded in the previous session were back in demand. Even the Mid-Cap and the Small-Cap stock participated the upswing.
Shares of Renuka Sugars gained by 2% to end at Rs218.4 after the company announced that it acquired Brazilian co VDI. The company plans to pay US$82mn for 100% stake in VDI. Balance assumed as debt to be paid over 8 years. Enterprise value of VDI is US$240mn.
The stock opened at Rs216 and made an intra-day high of Rs221 and a low of Rs212. Total traded volumes stood at 1.2mn shares.
Shares of Cipla gained 1.5% to end at Rs305 after the manufacturer of fine chemicals and pharmaceuticals preparation announced that it has launched Anti-flu to combat flu pandemic. This is the only medicine from India to be Pre-qualified by WHO. The drug will be sold under schedule X category.
The stock opened at Rs299 and made an intra-day high of Rs308 and a low of Rs299. Total traded volumes stood at 5.2mn shares.
Shares of Reliance Industries gained by 2.7% to end at Rs2107 as the company is reportedly scouting to acquire couple of overseas companies for over US$25bn. Bankrupt chemical company LyondellBasell, Holland is one on the company's radar whose US and Europe assets are estimated to be valued at US$10-12bn.
Other global proposals may include ConocoPhilips' refining assets, US, Volero, and assets of British Petroleum, added reports.
Reliance may be scouting for diamonds in Madhya Pradesh. But, shares of leading Diamond Company Shrenug & Company shot up by over 30% in the past two trading session hitting its new 52-week high of Rs40.25. The rally was seen on the back of huge volumes.
Such huge volumes were seen in the stock in March 2008 when it hit all time high of Rs86.6. On Wednesday, the stock rose over 14% to end at Rs40.55.
The company has achieved 6% increase in sales revenue (consolidated) in H1-FY10 to Rs7.22bn while the net profit registered a growth of 16.7% to Rs230.3mn up from Rs197.3mn (H1-FY09). EPS stood at Rs3.32 as against Rs2.85 in the corresponding period last year.
For the quarter ended September 30, 2009, Shrenug posted a PAT of Rs129.7mn, recording an increase of 120% over corresponding period last year. Net Sales in the same period recorded an increase of 16 %, from Rs3.42bn to Rs3.96bn.
In the domestic arena, the indirect tax receipts for the period between April-October dropped 21.6% to Rs. 1,27,000 crore. According to Trade Secretary Rahul Khullar the exports declined 11.4% to $12.5 bn in October 2009 as compared to October 2008. Moreover, the exports for the period between April and October stood at $90.4 billion, down 26.5% from the year ago period. Apart from this, the state government is considering introducing a dual structure for goods and services tax (GST) with two rates for goods and a single rate for services which would be levied both by the Centre and the states though the time frame for the implementation of the same has not been clarified yet. Other than the fact that the Centre and states have agreed to keep crude, petrol, ATF and diesel outside GST''s ambit, there are no surprises on the goods and service tax (GST) and there will be no change on the taxes at state and central level on these products. However, no decision has been taken on natural gas as yet and GST will not apply to alcoholic beverages while the state excise duties will continue, in addition, tobacco will be subjected to GST.
Among the Sensex pack all the 30 stocks ended in positive territory. The market breadth indicating the overall health of the market remained strong as 1,726 stocks closed in green while 1,004 stocks closed in red and 87 stocks remained unchanged in BSE.
Gainers from the BSE Sensex pack are Sterlite Inds (6.50%), JP Associates (6.27%), Reliance Infra (5.31%), Tata Motors (4.68%), Tata Steel (4.28%), Infosys (4.08%), Wipro (3.88%) and Hindalco (3.86%).
BSE METAL index was at 15,699.97 up by 643.17 points or by (4.27%) The main gainers were Gujara Nre C up by (7.32%) at Rs.66.7, Sesa Goa Ltd up by (7.23%) at Rs.353.8, Sterlite In up by (6.5%) at Rs.858.05, Nmdc Ltd up by (6.34%) at Rs.461.2, Tata Stl up by (4.28%) at Rs.526.35.
BSE IT index was at 4,635.22 up by 175.86 points or by (3.94%) The main gainers were Oracle Fin up by (6.08%) at Rs.2283.95, Tech Mah up by (5.62%) at Rs.1053.3, Niit Ltd up by (5.47%) at Rs.64.55, Hcl Techno up by (5.18%) at Rs.321.7, Mphasis Ltd up by (4.89%) at Rs.771.35.
BSE TECk index was at 2,970.17 up by 96.46 points or by (3.36%) The main gainers were Mahanag Tele up by (7.69%) at Rs.78.45, Oracle Fin up by (6.08%) at Rs.2283.95, Tech Mah up by (5.62%) at Rs.1053.3, Niit Ltd up by (5.47%) at Rs.64.55, Hcl Techno up by (5.18%) at Rs.321.7.
BSE REALTY indexwas at 4,061.24 up by 92.90 points or by (2.34%) The main gainers were Parsvnath up by (4.62%) at Rs.119, Housing Dev up by (4.46%) at Rs.374.75, Phoenix Mill up by (3.23%) at Rs.191.65, Unitech Ltd up by (3.07%) at Rs.88.9, Ansal Infras up by (2.77%) at Rs.68.65.
BSE BANKEX index was at 10,391.28 up by 207.28 points or by (2.04%) The main gainers were Bank Of Baroda-Pari Passu up by (3.94%) at Rs.556.2, Icici Bank L up by (3.35%) at Rs.924.65, Kotak Bank up by (3.04%) at Rs.812.4, Punjab Natbk up by (2.97%) at Rs.930.3, Idbi Bank L up by (2.5%) at Rs.125.
Pyramid Samira declined 9.86% to close at Rs. 19.65 on the back of reports that Securities and Exchange Board of India (SEBI) barred the company from accessing the market directly or indirectly for seven years.
HCL Technologies Ltd. (HCL) surged 5.18% to close at Rs. 321.70. The company announced that it has been recognized as a 2009 Most Admired Knowledge Enterprise (MAKE) in India for maximizing Enterprise Intellectual Capital. The winners were announced during a special awards ceremony at the Confederation of Indian Industry''''s ''''KM India 2009'''' Conference in Chennai.
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FIIs to set trend: ICICI Pru
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Air India FY09 loss at Rs 5,550cr
Mobile firms add 1cr users in Oct
BOE Has 'Open Mind' on bond purchases
Montek for phasing out stimulus
Govt to report on financial stability
MF minnows outpace bigger players
Nokia, ITC to offer agri-content
India Inc cut costs to mitigate effect
Tata Elxsi betting on healthcare
Exports demand picking up...
Pepsico to focus on Indian consumers
Gold @ new high of $1,117/oz
RBI might raise interest rates by yr end
India potential and interesting market
RCom may sign Rs 200-cr mobile mail deal
Adobe to cut 680 full time jobs
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Fx inflows no cause for worry: FinMin
AdMob purchase to expand iPhone ads
MNCs working against Indian drug firms
Yahoo offers help in UID project
Bear managers acquittal hampers case
BRIC nations to lead IPO recovery: E&Y
Nakheel talks with Dubai World
BOE lifts forecasts for inflation, GDP
Enrollment of graduate students drop
I-T's warning to Koda aides to turn up
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Glaxo to donate swine flu vaccine to WHO
'World economy faces bank, bubble risks'
China production, trade surplus climb
India Investigates Accounts Linked to UBS Case, FT Reports
India is investigating the past management of private banking accounts, including two linked to billionaire Anil Ambani, the Financial Times reported, without saying where it got the information.
The Indian government's Enforcement Directorate has been probing whether "unspecified parties" violated foreign exchange transactions by misusing UBS AG accounts in London held by Ambani's Reliance Natural Resources Ltd. and Reliance Energy Ltd., the FT said.
Reliance ADA said it had maintained the UBS London accounts "in full compliance with all applicable laws, rules and regulations," the FT said. There is no suggestion of wrongdoing by Ambani or Reliance, according to the report.
Karina Byrne, a spokeswoman for UBS in New York, said the company had no comment on the India investigation.
MSCI Increases Brazil, China Stocks in Indexes Amid Stock Rally
MSCI Inc. is increasing the number of Brazilian and Chinese stocks in its global standard indexes following a semi-annual review, reflecting a rally in the world's two largest developing markets.
China's Nine Dragons Paper Holdings Ltd. and Brazil's Lojas Renner SA and PDG Realty SA Empreendimentos e Participacoes are the biggest additions to its emerging-markets index, MSCI said in a statement. U.S.-based Genworth Financial Inc., the U.K.'s Inmarsat Plc and Petrobank Energy & Resources Ltd. of Canada will be the largest inclusions to the MSCI World Index of developed shares, it added.
Adjustments in the MSCI indexes may cause shares that are chosen for inclusion to advance and those slated for deletion to drop as funds designed to mirror the benchmarks buy and sell stocks in accordance with those changes. The New York-based company estimates more than $3 trillion in funds are benchmarked against its indexes globally.
"Emerging markets' contribution to global GDP has been increasing substantially in recent years but from an indexes point of view, they still have a very small weighting overall," Nader Naeimi, a Sydney-based strategist at AMP Capital Markets, which holds $75 billion in assets. "That's a trend that we're likely to see over the coming years."
China, Brazil's Growth
China's gross domestic product expanded 8.9 percent in the third quarter, underscoring the nation's role as the world's fastest-growing major economy. Brazil exited its first recession since 2003 in the second quarter, and the growth may accelerate to at least 5 percent next year, President Luiz Inacio Lula da Silva said last week.
Naeimi said he favors stocks that benefit from China's growth as well as commodity producers in Latin America. He didn't name any companies.
The MSCI Emerging Markets Index, a gauge of 22 developing nations, has surged 71 percent this year as signs the worst of the global recession is over spurred demand for higher-yielding assets and bolstered the outlook for commodity producers. That outpaced a 26 percent increase in the MSCI World Index of 23 developed countries. The changes will occur after the close of trading Nov. 30.
Brazil had the most net additions, with 11 companies included and none removed. Both Lojas Renner, Brazil's biggest publicly traded clothing retailer, and PDG Realty, a homebuilder that last month said it was selling stock together with its shareholders, have more than doubled this year in Sao Paulo trading.
Brazil's Additions
The two will be joined by BR Malls Participacoes SA, Gafisa SA, Gol Linhas Aereas Inteligentes SA, Hypermarcas SA, LLX Logistica SA, Localiza Rent a Car SA, Multiplan Empreendimentos Imobiliarios SA, Rossi Residencial SA, and Tam SA.
China will have seven additions, while only one stock, Guangshen Railway Co., will be deleted. Nine Dragons, the country's biggest maker of containerboard paper for packaging, has gained more than fivefold in Hong Kong trading this year.
The MSCI China Index, which tracks mainly the so-called H shares of Chinese companies traded in Hong Kong, will also include Anta Sports Products Ltd., BBMG Corp., Golden Eagle Retail Group Ltd., Greentown China Holdings Ltd., Poly (Hong Kong) Investment Ltd. and Xinao Gas Holdings Ltd.
Russia, India
In Russia, MSCI added OAO Inter RAO UES, the country's largest electricity exporter, as well as preferred shares of OAO Sberbank, the largest lender. Common shares of OAO Rostelecom, the nation's dominant long-distance operator, and preferred shares of OAO Transneft, Russia's pipeline operator, were deleted, MSCI said.
Indian developer Housing Development & Infrastructure Ltd. and Suzlon Energy Ltd., the nation's biggest maker of wind turbines, will replace Glenmark Pharmaceuticals Ltd. and Power Grid Corp. of India on the MSCI India Index.
Taiwan will be the biggest loser from the review, with six stocks including Sincere Navigation Corp. and Via Technologies Inc. set to be removed from MSCI's indexes. No companies will be added.
Turk Hava Yollari AO, the carrier known as Turkish Airlines, replaced Petkim Petrokimya Holding AS and Tekfen Holding AS on the MSCI Turkey Index.
The index provider will also set up a country gauge for Bangladesh, whose Dhaka Stock Exchange General Index has gained 22 percent this year.
MSCI makes decisions on membership and weightings based on a company's market value, the average number of shares traded and the free float, or the percentage of shares available to investors. It also takes into account the representation of a company's industry group and country in the indexes.
Housing Development, Reliance, Tata Steel: India Stock Preview
The following companies may have unusual price changes in India trading. Stock symbols are in parentheses and share prices are from the last close, unless stated otherwise.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 409.04, or 2.5 percent, to 16,849.60. The S&P CNX Nifty Index on the National Stock Exchange added 2.5 percent to 5,003.95. The BSE 200 Index climbed 2.4 percent to 2,099.24.
Overseas funds have bought 697.6 billion rupees ($15.1 billion) of Indian stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008, the Securities and Exchange Board of India said on its Web site.
MSCI Changes: Housing Development & Infrastructure Ltd. (HDIL IN) and Suzlon Energy Ltd. (SUEL IN) were added to the MSCI India Index. Glenmark Pharmaceuticals Ltd. (GNP IN) and Power Grid Corp. of India (PWGR IN) were deleted.
Housing Development, an Indian developer, climbed 4.6 percent to 374.70 rupees. Suzlon Energy, the nation's biggest maker of wind turbines, added 4.1 percent to 67.70 rupees. Glenmark Pharmaceuticals, a drugmaker, rose 2.4 percent to 231.15, while Power Grid, the country's biggest electricity transmission company, increased 3.2 percent to 108.55.
Development Credit Bank Ltd. (DEVB IN): The Indian lender plans to raise as much as 1 billion rupees selling shares to institutional investors, according to a sale document. The lender will sell the shares for a minimum price of 34.14 rupees each, the sale document showed. The shares gained 7.3 percent to 39 rupees.
Reliance Industries Ltd. (RIL IN): India's most valuable company said it may sell its stake in some overseas oil and gas exploration areas. Reliance rose 2.9 percent to 2,114 rupees.
Reliance Communications Ltd. (RCOM IN): India's second- largest mobile-phone operator is in discussions with Canada's Iseemedia Inc. to introduce low-cost e-mail services on phones, the Hindu BusinessLine reported on its Web site yesterday, without saying where it got the information. Reliance Communications advanced 1.3 percent to 170.9 rupees.
Tata Steel Ltd. (TATA IN): India's biggest producer said it offered to swap its $875 million of 1 percent convertible alternative reference securities due 2012 for new convertible bonds maturing 2014. Tata gained 4.3 percent to 526.55 rupees.
INVESTMENT VIEW
Ganesh Housing-Buy Back Proposal Lapses
INVESTMENT VIEW
Ganesh Housing-Buy Back Proposal Lapses
BSE 526367
The crash of Jan 2008 and the low point of March 2009 confirm the view that few corporates have the credibility or the understanding of capital markets. While in 2008 most promoters were issuing themselves warrants convertible into Equity, later in the same year they were taking out resolutions to Buy-Back Equity.
A case in point is Ganesh Housing-from a March low of Rs 30, the stock now trades at Rs 117.75. The promoters had announced late in 2008 that they would Buy-Back close to 20 lakh shares at a price not exceeding Rs 101 per share.
Even though the stock has moved up from Rs 30 to Rs 117.75, the management has bought not a single share from the market, defeating the very purpose of announcing a Buy-Back.
That is, unless both issue of Warrants and Buy-Back proposals are fraudulent and malafide in nature, as they only seek to play up company stock, without ever having the intent to either put in more money into their companies or to Buy Back Equities.
It is a fair instance for Sebi/NSE/BSE to examine the role played by each management that has announced an issuance of warrant and/or a buy-back proposal and then letting them lapse, without spending dime.
To a very large extent investors would realise that most of these entities are either tainted or have poor corporate governance that does not shy away from old tricks to manipulate markets and stock prices.
(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.)
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Arvind Parekh
+ 91 98432 32381
