About Me
- Jagruti Fadia
- Mumbai, Maharashtra, India
- Besides being a CHARTERED ACCOUNTANT from Institute of Chartered Accountants of India,SAP certified consultant(FICO) and A Director in an advertising Company,I am a BSE certified stock analyst(technical) and I trade regularly on Bombay stock exchange.Do you like to have some free reliable stock trading tips ??? Visit my blog daily and follow my research.
Tuesday, June 30, 2009
SESA GOA
WEEKLY CHART OF SESA GOA SHOWS A NICE FLAG PATTERN AND IT MAY RISE TO RS.255 IN SHORT TERM, BUY ON DIPS.
GOOD MORNING
FRIENDS,
MARKET OPENED IN GREEN AND LOOKS GOOD, BUT VERY VOLATILE. VOLUME AND BREADTH IS ALSO GOOD. DONT ENTER INTRA DAY TRADE, TRADE WITH 3-4 DAYS POSITION.BOOK PROFITS EVENTUALLY.
BUY:
ABAN
TULIP TELE
REL CAP
IFCI
UNITECH
MARKET OPENED IN GREEN AND LOOKS GOOD, BUT VERY VOLATILE. VOLUME AND BREADTH IS ALSO GOOD. DONT ENTER INTRA DAY TRADE, TRADE WITH 3-4 DAYS POSITION.BOOK PROFITS EVENTUALLY.
BUY:
ABAN
TULIP TELE
REL CAP
IFCI
UNITECH
Monday, June 29, 2009
Good Morning
Hello,
Good Morning FRIENDS,
Morning is rainy and beautiful in the city. It will be beautiful on our stock exchanges too. Lets give you wonderful pick for short term trade,
UNITY INFRA
APPOLLO HOSPITAL
CADILA HEALTHCARE
MPHASIS
STER TECH
CENTRAL BANK
IL & FS INVEST
BARTRONICS
Trading tips for the day will come to you during the market hours,
Have a nice day,
Jagruti.
THOUGHT OF THE DAY : THE FULL USE OF TODAY IS THE BEST PREPARATION FOR TOMORROW.
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Good Morning FRIENDS,
Morning is rainy and beautiful in the city. It will be beautiful on our stock exchanges too. Lets give you wonderful pick for short term trade,
Image by Getty Images via Daylife
UNITY INFRA
APPOLLO HOSPITAL
CADILA HEALTHCARE
MPHASIS
STER TECH
CENTRAL BANK
IL & FS INVEST
BARTRONICS
Trading tips for the day will come to you during the market hours,
Have a nice day,
Jagruti.
THOUGHT OF THE DAY : THE FULL USE OF TODAY IS THE BEST PREPARATION FOR TOMORROW.
Sunday, June 28, 2009
Unitech
Unitech Said to Raise $575 Million in Sale to Institutions
June 27 (Bloomberg) -- Unitech Ltd., India's second-biggest real-estate developer, sold $575 million of stock to institutional investors, two people familiar with the sale said.
The Gurgaon, New Delhi-based company sold the shares yesterday at 81 rupees ($1.68) each, said the people, who declined to be identified before an announcement. A Unitech spokesman declined to comment.
Unitech sold assets and stock this year to reduce debt and fund projects. In April, the developer raised 16.2 billion rupees in a share offering and disposed of 10 billion rupees of property. Shareholders last week approved the sale of 11.55 billion rupees of warrants to Unitech's founders and as many as 1 billion shares to investors.
Credit Suisse Group AG, IDFC-SSKI Securities Pvt., Morgan Stanley and UBS AG are advising Unitech, the people familiar said.
To contact the reporters on this story: Pratik Parija in New Delhi at pparija@bloomberg.net Sumit Sharma in Mumbai at sumitsharma@bloomberg.net
June 27 (Bloomberg) -- Unitech Ltd., India's second-biggest real-estate developer, sold $575 million of stock to institutional investors, two people familiar with the sale said.
The Gurgaon, New Delhi-based company sold the shares yesterday at 81 rupees ($1.68) each, said the people, who declined to be identified before an announcement. A Unitech spokesman declined to comment.
Unitech sold assets and stock this year to reduce debt and fund projects. In April, the developer raised 16.2 billion rupees in a share offering and disposed of 10 billion rupees of property. Shareholders last week approved the sale of 11.55 billion rupees of warrants to Unitech's founders and as many as 1 billion shares to investors.
Credit Suisse Group AG, IDFC-SSKI Securities Pvt., Morgan Stanley and UBS AG are advising Unitech, the people familiar said.
To contact the reporters on this story: Pratik Parija in New Delhi at pparija@bloomberg.net Sumit Sharma in Mumbai at sumitsharma@bloomberg.net
Friday, June 26, 2009
India Stocks, Fairly Valued, May Still Rise 14% in 12 Months, Nomura Says
India's Sensex to Rise 14% in 12 Months, Nomura Says
June 26 (Bloomberg) -- Indian stocks are "fairly valued" after a 49 percent advance this year and further gains depend on government policies to boost economic growth and pare a budget deficit, Nomura Holdings Inc. said.
The benchmark Bombay Stock Exchange Sensitive Index may rise to 16,400 in the next 12 months, a "muted" 14 percent gain from yesterday's close, Nomura analysts led by Prabhat Awasthi said in a report today. Investors should own a mix of so-called defensive and domestic cyclical shares, they added.
The rally this year has helped India post the fifth-best performance among the 89 markets tracked by Bloomberg News globally. Valuations have also climbed, with the Sensex now valued at 16 times reported earnings, double November's low of 8.1 times.
"The relative outperformance and the strong move in the market post the elections have now priced in improving economic fundamentals," the analysts wrote in the report. "The upcoming budget next month will be very important for the overall direction of the market."
The Sensex advanced 1.7 percent to 14,590.18, the highest in more than a week, as of 1:23 p.m. in Mumbai.
India has announced three stimulus packages since December, lowering retail fuel prices, cutting taxes on consumer products and injecting capital into state-run banks, to shield the economy from the global crisis.
Finance Minister Pranab Mukherjee will disclose the projected fiscal deficit for the year ending March 31 in his budget on July 6. The government in February said the deficit may be 5.5 percent of gross domestic product.
Nomura recommends that investors buy shares in industries including automobiles, financials, so-called fast-moving consumer goods, technology services, media, pharmaceuticals and power. Its recommended portfolio is "underweight" in energy, metals and cement companies following a jump in their valuations, according to the report.
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net
June 26 (Bloomberg) -- Indian stocks are "fairly valued" after a 49 percent advance this year and further gains depend on government policies to boost economic growth and pare a budget deficit, Nomura Holdings Inc. said.
The benchmark Bombay Stock Exchange Sensitive Index may rise to 16,400 in the next 12 months, a "muted" 14 percent gain from yesterday's close, Nomura analysts led by Prabhat Awasthi said in a report today. Investors should own a mix of so-called defensive and domestic cyclical shares, they added.
The rally this year has helped India post the fifth-best performance among the 89 markets tracked by Bloomberg News globally. Valuations have also climbed, with the Sensex now valued at 16 times reported earnings, double November's low of 8.1 times.
"The relative outperformance and the strong move in the market post the elections have now priced in improving economic fundamentals," the analysts wrote in the report. "The upcoming budget next month will be very important for the overall direction of the market."
The Sensex advanced 1.7 percent to 14,590.18, the highest in more than a week, as of 1:23 p.m. in Mumbai.
India has announced three stimulus packages since December, lowering retail fuel prices, cutting taxes on consumer products and injecting capital into state-run banks, to shield the economy from the global crisis.
Finance Minister Pranab Mukherjee will disclose the projected fiscal deficit for the year ending March 31 in his budget on July 6. The government in February said the deficit may be 5.5 percent of gross domestic product.
Nomura recommends that investors buy shares in industries including automobiles, financials, so-called fast-moving consumer goods, technology services, media, pharmaceuticals and power. Its recommended portfolio is "underweight" in energy, metals and cement companies following a jump in their valuations, according to the report.
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net
Sensex Rises
Indian Stocks Rise, Led by Metal Producers; Sun Pharma Plunges
June 26 (Bloomberg) -- Indian stocks rose, paring the benchmark index's second weekly decline since early March. Sterlite Industries (India) Ltd. led gains by metal producers on optimism economic recovery may spur demand.
Sterlite, the nation's biggest copper producer, added 3 percent as the price of the metal used in power cables rallied and a government report showed the U.S. economy shrank less than expected in the first quarter. Hindalco Industries Ltd., the largest aluminum producer, climbed 0.8 percent.
"Things are definitely improving," said Apurva Shah, head of research at Prabhudas Liladher Pvt. in Mumbai. "Positive retail sales data, ample short-term liquidity and home prices have leveled off; all point towards stabilization of the economy."
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 181, or 1.3 percent, to 14,527 at 12:49 p.m. in Mumbai. The S&P CNX Nifty Index on the National Stock Exchange added 1.6 percent to 4,310. The BSE 200 Index increased 1.5 percent to 1,775.25.
Sun Pharmaceutical Industries Ltd., India's biggest drugmaker by market value, plunged 11 percent after generic drugs made by its unit Caraco Pharmaceutical Laboratories Ltd. were seized by U.S. authorities, who cited violations of manufacturing standards.
Sterlite advanced 3 percent to 593.50 rupees. Hindalco climbed 0.8 percent to 85.15 rupees. Reliance Industries Ltd., India's most valuable company, gained 1.2 percent to 1,982.50 rupees. ICICI Bank Ltd., the second-biggest lender, rose 2.9 percent to 720.55 rupees. Infosys Technologies Ltd., the second- biggest software services provider, added 0.6 percent to 1,768.80 rupees.
Tata Steel
Tata Steel Ltd. fell 4.3 percent to 382.80 rupees. India's biggest producer swung to a loss in its fourth quarter after production halved at its U.K. unit Corus and it incurred costs to reorganize its European operations.
The Sensex has risen 50 percent this year on speculation government stimulus spending worldwide will help to end the first global recession since World War II. Shares on the Sensex are valued at 16.3 times reported earnings, almost double the 8.8 times they fetched in March.
Asian stocks rose as Bridgestone Corp. narrowed its loss forecast and commodity prices jumped. The MSCI Asia Pacific Index gained 1.5 percent to 103.32, taking its advance this week to 1.9 percent. The gauge has jumped 46 percent from a more than five-year low on March 9.
Indian stocks are "fairly valued" after a 49 percent advance this year and further gains depend on government policies to boost economic growth and pare a budget deficit, Nomura Holdings Inc. said.
Defensive Stocks
The Sensex may rise to 16,400 in the next 12 months, a "muted" 14 percent gain from yesterday's close, Nomura analysts led by Prabhat Awasthi said in a report. Investors should own a mix of so-called defensive and domestic cyclical shares, they added.
Sun Pharmaceutical tumbled 11 percent to 1,143.35 rupees. Shares of Caraco, which is 76 percent owned by Sun Pharmaceutical, dropped the most in 15 years after the U.S. Food and Drug Administration said in a statement yesterday it confiscated drugs and raw ingredients for medications. Corrective actions had been taken and "continual improvements" are being made while Caraco works to resolve the agency's concerns, the company said in a statement. Mira Desai, a spokeswoman for Sun Pharmaceutical, declined to comment.
Sun's earnings in fiscal year 2011 may decline by about 8 percent if Caraco has to shut its plant, Prashant Vaishampayan, an analyst at Kotak Securities Ltd., who tracks Sun Pharmaceutical, said in a note to clients yesterday.
Tata Motors Ltd., India's biggest truckmaker and owner of Jaguar and Land Rover, fell 1 percent to 333.90 rupees. The company is expected to declare its consolidated earnings later today.
Suzlon Energy Ltd., India's biggest maker of wind-turbine generators, rose 2.6 percent to 120.60 rupees after it said it will pay $1.87 million incentive fee to bondholders, as part of a plan to pare debt.
To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
June 26 (Bloomberg) -- Indian stocks rose, paring the benchmark index's second weekly decline since early March. Sterlite Industries (India) Ltd. led gains by metal producers on optimism economic recovery may spur demand.
Sterlite, the nation's biggest copper producer, added 3 percent as the price of the metal used in power cables rallied and a government report showed the U.S. economy shrank less than expected in the first quarter. Hindalco Industries Ltd., the largest aluminum producer, climbed 0.8 percent.
"Things are definitely improving," said Apurva Shah, head of research at Prabhudas Liladher Pvt. in Mumbai. "Positive retail sales data, ample short-term liquidity and home prices have leveled off; all point towards stabilization of the economy."
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 181, or 1.3 percent, to 14,527 at 12:49 p.m. in Mumbai. The S&P CNX Nifty Index on the National Stock Exchange added 1.6 percent to 4,310. The BSE 200 Index increased 1.5 percent to 1,775.25.
Sun Pharmaceutical Industries Ltd., India's biggest drugmaker by market value, plunged 11 percent after generic drugs made by its unit Caraco Pharmaceutical Laboratories Ltd. were seized by U.S. authorities, who cited violations of manufacturing standards.
Sterlite advanced 3 percent to 593.50 rupees. Hindalco climbed 0.8 percent to 85.15 rupees. Reliance Industries Ltd., India's most valuable company, gained 1.2 percent to 1,982.50 rupees. ICICI Bank Ltd., the second-biggest lender, rose 2.9 percent to 720.55 rupees. Infosys Technologies Ltd., the second- biggest software services provider, added 0.6 percent to 1,768.80 rupees.
Tata Steel
Tata Steel Ltd. fell 4.3 percent to 382.80 rupees. India's biggest producer swung to a loss in its fourth quarter after production halved at its U.K. unit Corus and it incurred costs to reorganize its European operations.
The Sensex has risen 50 percent this year on speculation government stimulus spending worldwide will help to end the first global recession since World War II. Shares on the Sensex are valued at 16.3 times reported earnings, almost double the 8.8 times they fetched in March.
Asian stocks rose as Bridgestone Corp. narrowed its loss forecast and commodity prices jumped. The MSCI Asia Pacific Index gained 1.5 percent to 103.32, taking its advance this week to 1.9 percent. The gauge has jumped 46 percent from a more than five-year low on March 9.
Indian stocks are "fairly valued" after a 49 percent advance this year and further gains depend on government policies to boost economic growth and pare a budget deficit, Nomura Holdings Inc. said.
Defensive Stocks
The Sensex may rise to 16,400 in the next 12 months, a "muted" 14 percent gain from yesterday's close, Nomura analysts led by Prabhat Awasthi said in a report. Investors should own a mix of so-called defensive and domestic cyclical shares, they added.
Sun Pharmaceutical tumbled 11 percent to 1,143.35 rupees. Shares of Caraco, which is 76 percent owned by Sun Pharmaceutical, dropped the most in 15 years after the U.S. Food and Drug Administration said in a statement yesterday it confiscated drugs and raw ingredients for medications. Corrective actions had been taken and "continual improvements" are being made while Caraco works to resolve the agency's concerns, the company said in a statement. Mira Desai, a spokeswoman for Sun Pharmaceutical, declined to comment.
Sun's earnings in fiscal year 2011 may decline by about 8 percent if Caraco has to shut its plant, Prashant Vaishampayan, an analyst at Kotak Securities Ltd., who tracks Sun Pharmaceutical, said in a note to clients yesterday.
Tata Motors Ltd., India's biggest truckmaker and owner of Jaguar and Land Rover, fell 1 percent to 333.90 rupees. The company is expected to declare its consolidated earnings later today.
Suzlon Energy Ltd., India's biggest maker of wind-turbine generators, rose 2.6 percent to 120.60 rupees after it said it will pay $1.87 million incentive fee to bondholders, as part of a plan to pare debt.
To contact the reporters on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net
Thursday, June 25, 2009
GOOD NIGHT
Image by G a r r y via Flickr
Another choppy session today, very volatile. Tomorrow being the week end , we do not expect much in the market. From Monday we will see some stability as there will be new series of future and options with lot of changes in the lot size , weights in nifty and 50 scrips out of F & O trade.
How did you find trading without my prompts ? One more day you will have to excuse me , I will be writing the blog from Monday.
Tomorrow's picks:
LIC HSG FIN
IVRCL INFRA
HDFC
UNITED SPIRITS
Good Night,
Jagruti.
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Wednesday, June 24, 2009
GOOD NIGHT
Image via Wikipedia
Have you seen the volatility of the market now a days? Our market looks good as I always keep on saying. Tomorrow is the expiry of June F & O series. Market should go up till budget. Up to rail budget , the stocks related to rail industry will rise, don't forget to book profit as event occurs i.e. budget is presented.
I am extremely thankful to my fans who have signed up in Fan club on my blog and I am also thankful to my readers who have remained shy and not signed up. Thanks guys , your interest in the blog keep it alive and me busy with the research work. Have you ever checked back after market hours, how were the picks given by me? Most of the time if you check they will appear in top gainers for that day or the next day. Stock market always tests our patience. Have you ever felt that as soon as you sell the scripe it rises, as if your being holding it was like a paper weight !! :) Don't get frustrated at that time, but understand the fact that seller and buyer of the scripe are parteners and they must share the profit occured by price difference !! You will not feel bad then.
Tomorrow, for some personal reason , I will not be writing the blog but for your information , I am giving you the stock picks for tomorrow:
Great offshore
Sesa Goa
Aban Offshore
Uflex
Suzlon
Education and rail related stocks also sugar stocks like Balrampur chini, triveni engg., bajaj hindustan.
Bye for now and let us wait for US markets opening,
Good night,
Jagruti.
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IMPORTANT
BE STOCK SPECIFIC, DONT TRADE IN INDEX.
KEEP EYE ON THE 50 STOCKS WHICH ARE GOING OUT OF F & O TRADING FROM NEXT SERIES. THEY MAY GO UP FOR TODAY AND TOMORROW BUT THEN MAY LOSE STEAM.
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KEEP EYE ON THE 50 STOCKS WHICH ARE GOING OUT OF F & O TRADING FROM NEXT SERIES. THEY MAY GO UP FOR TODAY AND TOMORROW BUT THEN MAY LOSE STEAM.
BUY
AVOID TRADING INTRA DAY. TAKE POSITION FOR 2-3 DAYS VIEW.
GOOD:
LIC
GIC
LT
EDUCOMP
SPICE TELE
GATEWAY DISRIPARK
CLOSE TRADE AS DESIRED PROFIT OF 10-15% IS RECVD.
GOOD:
LIC
GIC
LT
EDUCOMP
SPICE TELE
GATEWAY DISRIPARK
CLOSE TRADE AS DESIRED PROFIT OF 10-15% IS RECVD.
market now
Market opened in green but selling off seen and market giving up gains, let it settle down to start trading.
Great Offshore - ABG Shipyard- Bharti
Bharati to Raise Great Offshore Offer, Countering ABG
June 23 (Bloomberg) -- Bharati Shipyard Ltd., locked in a bidding war with ABG Shipyard Ltd. for Great Offshore Ltd., said it will top its rival's offer for the Indian drilling company.
Bharati, which holds 14.89 percent of Great Offshore after buying the stock pledged with it last month, will revise its offer price to more than 403 rupees ($8.3) a share, Managing Director P.C. Kapoor told reporters in Mumbai today, without giving the new price. Bharati bought 4.58 percent of Great Offshore from the founders today at that price, he said.
Both ABG, India's biggest non-state yard, and Bharati, the second-biggest, want to buy Great Offshore as demand increases for drill ships and other offshore structures. Depleting crude reserves are prompting oil companies to search for resources in deeper and unexplored waters.
"We have raised our equity share holding as we feel it is a strategic long-term investment," Kapoor said. "Irrespective of the ABG Shipyard offer, we will stay invested."
Great Offshore rose to its highest in almost nine months to 413.85 rupees at close in Mumbai today. ABG rose 1.8 percent to 214.15 rupees, while Bharati fell 5.1 percent to 162.3 rupees. The key Sensitive Index was little changed.
Bharati must revise its offer for Great Offshore within 14 days, as per rules set by India's stock market regulator. The company may need as much as 3 billion rupees to enhance its offer and will use its own cash, Kapoor said.
"We hold 1 billion rupees cash in fixed deposit," he said.
Bharati has no plans to place any officials on the board of Great Offshore, Kapoor said.
'Good Friends'
"The present management is doing well under Vijay Sheth and that will continue," he said. "Sheth family is good friends of ours. This is not a hostile takeover situation."
ABG, which owns about 2.5 percent of Great Offshore, offered to pay 375 rupees a share for an additional 33.85 percent stake, it said in an advertisement today. ABG will use its own funds and debt to buy the stake, Chairman Rishi Agarwal said today at a press conference.
SBI Capital Markets Ltd. is managing Bharati's offer, while Kotak Mahindra Capital Co. is advising ABG.
Bharati offered to acquire an additional 20 percent stake in Great Offshore on June 3 for 344 rupees a share. A 15 percent stake purchase in a company triggers a mandatory open offer by the acquirer, according to Indian guidelines.
To contact the reporters on this story: Paresh Jatakia in Mumbai at pareshj@bloomberg.net Debarati Roy in Mumbai at droy5@bloomberg.net
June 23 (Bloomberg) -- Bharati Shipyard Ltd., locked in a bidding war with ABG Shipyard Ltd. for Great Offshore Ltd., said it will top its rival's offer for the Indian drilling company.
Bharati, which holds 14.89 percent of Great Offshore after buying the stock pledged with it last month, will revise its offer price to more than 403 rupees ($8.3) a share, Managing Director P.C. Kapoor told reporters in Mumbai today, without giving the new price. Bharati bought 4.58 percent of Great Offshore from the founders today at that price, he said.
Both ABG, India's biggest non-state yard, and Bharati, the second-biggest, want to buy Great Offshore as demand increases for drill ships and other offshore structures. Depleting crude reserves are prompting oil companies to search for resources in deeper and unexplored waters.
"We have raised our equity share holding as we feel it is a strategic long-term investment," Kapoor said. "Irrespective of the ABG Shipyard offer, we will stay invested."
Great Offshore rose to its highest in almost nine months to 413.85 rupees at close in Mumbai today. ABG rose 1.8 percent to 214.15 rupees, while Bharati fell 5.1 percent to 162.3 rupees. The key Sensitive Index was little changed.
Bharati must revise its offer for Great Offshore within 14 days, as per rules set by India's stock market regulator. The company may need as much as 3 billion rupees to enhance its offer and will use its own cash, Kapoor said.
"We hold 1 billion rupees cash in fixed deposit," he said.
Bharati has no plans to place any officials on the board of Great Offshore, Kapoor said.
'Good Friends'
"The present management is doing well under Vijay Sheth and that will continue," he said. "Sheth family is good friends of ours. This is not a hostile takeover situation."
ABG, which owns about 2.5 percent of Great Offshore, offered to pay 375 rupees a share for an additional 33.85 percent stake, it said in an advertisement today. ABG will use its own funds and debt to buy the stake, Chairman Rishi Agarwal said today at a press conference.
SBI Capital Markets Ltd. is managing Bharati's offer, while Kotak Mahindra Capital Co. is advising ABG.
Bharati offered to acquire an additional 20 percent stake in Great Offshore on June 3 for 344 rupees a share. A 15 percent stake purchase in a company triggers a mandatory open offer by the acquirer, according to Indian guidelines.
To contact the reporters on this story: Paresh Jatakia in Mumbai at pareshj@bloomberg.net Debarati Roy in Mumbai at droy5@bloomberg.net
Satyam- Tech mahindra
Satyam Names Gurnani Chief to Help Rebuild Company After Fraud
June 24 (Bloomberg) -- Satyam Computer Services Ltd. named Chander Prakash Gurnani chief executive officer as new owner Tech Mahindra Ltd. starts to reorganize the company at the center of India's biggest corporate fraud probe.
Gurnani, who headed the international operations at Satyam's parent, replaced A.S. Murty yesterday. Subramaniam Durgashankar, formerly senior vice president of mergers and acquisitions at Tech Mahindra's largest shareholder, was appointed chief financial officer. Gurnani said he plans to announce a reorganization of Satyam by tomorrow.
Gurnani, 50, aims to revive Satyam after a stock collapse prompted by former chairman Ramalinga Raju's admission in January that he overstated assets by $1 billion. The new chief executive pledged he will improve the company's corporate governance and customer ties as he tries to regain market share lost to rivals such as Infosys Technologies Ltd.
"Substantial changes needed to be made in the company's organizational structure," Kevin Trindade, a Mumbai-based analyst at KR Choksey Shares & Securities Pvt., said by telephone. Gurnani's experience will make him "one of the most valuable assets" to Satyam, he said.
Satyam's American depositary receipts gained 4.3 percent to $3.40 at 9:41 a.m. in New York trading. The stock has declined 59 percent in Mumbai trading since Raju's disclosure on Jan. 7, while the benchmark Sensitive Index has advanced 39 percent.
Outbidding Wilbur Ross
Tech Mahindra Chairman Anand Mahindra, who outbid billionaire Wilbur Ross and Larsen & Toubro Ltd. with a $579 million offer in April, has said he's taking a "calculated risk" in buying Satyam before the company restates accounts and without clarity on liabilities from lawsuits in the U.S.
The 54-year-old Harvard University graduate is also trying to keep Satyam's clients from joining State Farm Automobile Insurance Co. in canceling orders.
"Attrition has been practically zero since April," Gurnani, a chemical engineer from the Rourkela, India-based National Institute of Technology, said.
Tech Mahindra may be merged with Satyam in the next one or two years, he said. On June 21, Satyam, once India's fourth- largest software-services provider, said it rebranded itself to Mahindra Satyam.
Gurnani, a former chief operating officer and founder of the Indian unit of Perot Systems Corp. said adding the Mahindra name to Satyam would help restore customer confidence.
Satyam lost contracts from about 46 customers to rivals such as International Business Machines Corp. and Tata Consultancy Services Ltd., the Economic Times reported in March. Applied Materials Inc., Nissan Motor Co., Sony Corp. and Telstra Corp. are among companies that have moved or are in the process of seeking out other vendors, the newspaper said at the time.
'65-Year-Old Brand'
"Mahindra has lent their 65-year-old brand to the company and that has given Satyam a huge advantage," Gurnani said. "The fraud that happened at Satyam was localized and by a few people. The Mahindra name has washed that away."
Satyam, which maintains computer systems and provides back- office support for Cisco Systems Inc., Nestle SA and other clients, was put on sale by a state-appointed board to prevent an exodus of clients and employees after Raju's disclosure.
"Tech Mahindra's buyout of Satyam has had a positive impact on customer sentiment," JPMorgan Chase & Co.'s Mumbai- based analyst Manoj Singla wrote in a note to clients earlier this month. Satyam will probably see a "sharp turnaround" in revenues and profits as early as this year, he wrote, assigning an "outperform" rating on the stock in new coverage.
Satyam on June 9 said unaudited profit for the quarter ended Dec. 31 was 1.6 billion rupees ($33 million), its first public disclosure of earnings estimates since Raju's statement.
Tech Mahindra rose 0.8 percent to close at 747.35 rupees yesterday. The stock has surged 133 percent since it won a bid on April 13 to acquire control of Satyam.
Excess Employees
Still, Satyam, which said it had about 48,000 employees at the time Tech Mahindra agreed to buy it, has 8,500 employees on a "virtual bench" because of a lack of orders, Gurnani said.
Employee numbers had been padded to siphon off cash, public prosecutor K. Ajay Kumar said at a court hearing for Raju in Hyderabad in January. Satyam had 40,000 employees, short of the 53,000 claimed by the company, he said. Raju's lawyer S. Bharat Kumar and Satyam denied the charge at the time.
"The business is determined not by the CEO; there are business segment heads," who acquire clients, Tarun Sisodia, a Mumbai-based analyst at Anand Rathi Financial Services Ltd., said by phone before the announcement. "Now the question is, when will they announce their plan for integration."
The Pune-based Tech Mahindra, partly owned by BT Group Plc, is the smaller of the two companies and had 25,429 employees at the end of December.
Set up as a venture between BT Group and India's largest utility-vehicle maker, Mahindra & Mahindra Ltd., in 1986, Tech Mahindra counts the British telecommunications company as its largest client and mainly serves phone companies in Europe.
"Right now we have to roll up our sleeves and get this car back on track," said Mahindra.
To contact the reporters on this story: Vipin Nair in Mumbai at vnair12@bloomberg.net Harichandan Arakali in Bangalore at harakali@bloomberg.net .
June 24 (Bloomberg) -- Satyam Computer Services Ltd. named Chander Prakash Gurnani chief executive officer as new owner Tech Mahindra Ltd. starts to reorganize the company at the center of India's biggest corporate fraud probe.
Gurnani, who headed the international operations at Satyam's parent, replaced A.S. Murty yesterday. Subramaniam Durgashankar, formerly senior vice president of mergers and acquisitions at Tech Mahindra's largest shareholder, was appointed chief financial officer. Gurnani said he plans to announce a reorganization of Satyam by tomorrow.
Gurnani, 50, aims to revive Satyam after a stock collapse prompted by former chairman Ramalinga Raju's admission in January that he overstated assets by $1 billion. The new chief executive pledged he will improve the company's corporate governance and customer ties as he tries to regain market share lost to rivals such as Infosys Technologies Ltd.
"Substantial changes needed to be made in the company's organizational structure," Kevin Trindade, a Mumbai-based analyst at KR Choksey Shares & Securities Pvt., said by telephone. Gurnani's experience will make him "one of the most valuable assets" to Satyam, he said.
Satyam's American depositary receipts gained 4.3 percent to $3.40 at 9:41 a.m. in New York trading. The stock has declined 59 percent in Mumbai trading since Raju's disclosure on Jan. 7, while the benchmark Sensitive Index has advanced 39 percent.
Outbidding Wilbur Ross
Tech Mahindra Chairman Anand Mahindra, who outbid billionaire Wilbur Ross and Larsen & Toubro Ltd. with a $579 million offer in April, has said he's taking a "calculated risk" in buying Satyam before the company restates accounts and without clarity on liabilities from lawsuits in the U.S.
The 54-year-old Harvard University graduate is also trying to keep Satyam's clients from joining State Farm Automobile Insurance Co. in canceling orders.
"Attrition has been practically zero since April," Gurnani, a chemical engineer from the Rourkela, India-based National Institute of Technology, said.
Tech Mahindra may be merged with Satyam in the next one or two years, he said. On June 21, Satyam, once India's fourth- largest software-services provider, said it rebranded itself to Mahindra Satyam.
Gurnani, a former chief operating officer and founder of the Indian unit of Perot Systems Corp. said adding the Mahindra name to Satyam would help restore customer confidence.
Satyam lost contracts from about 46 customers to rivals such as International Business Machines Corp. and Tata Consultancy Services Ltd., the Economic Times reported in March. Applied Materials Inc., Nissan Motor Co., Sony Corp. and Telstra Corp. are among companies that have moved or are in the process of seeking out other vendors, the newspaper said at the time.
'65-Year-Old Brand'
"Mahindra has lent their 65-year-old brand to the company and that has given Satyam a huge advantage," Gurnani said. "The fraud that happened at Satyam was localized and by a few people. The Mahindra name has washed that away."
Satyam, which maintains computer systems and provides back- office support for Cisco Systems Inc., Nestle SA and other clients, was put on sale by a state-appointed board to prevent an exodus of clients and employees after Raju's disclosure.
"Tech Mahindra's buyout of Satyam has had a positive impact on customer sentiment," JPMorgan Chase & Co.'s Mumbai- based analyst Manoj Singla wrote in a note to clients earlier this month. Satyam will probably see a "sharp turnaround" in revenues and profits as early as this year, he wrote, assigning an "outperform" rating on the stock in new coverage.
Satyam on June 9 said unaudited profit for the quarter ended Dec. 31 was 1.6 billion rupees ($33 million), its first public disclosure of earnings estimates since Raju's statement.
Tech Mahindra rose 0.8 percent to close at 747.35 rupees yesterday. The stock has surged 133 percent since it won a bid on April 13 to acquire control of Satyam.
Excess Employees
Still, Satyam, which said it had about 48,000 employees at the time Tech Mahindra agreed to buy it, has 8,500 employees on a "virtual bench" because of a lack of orders, Gurnani said.
Employee numbers had been padded to siphon off cash, public prosecutor K. Ajay Kumar said at a court hearing for Raju in Hyderabad in January. Satyam had 40,000 employees, short of the 53,000 claimed by the company, he said. Raju's lawyer S. Bharat Kumar and Satyam denied the charge at the time.
"The business is determined not by the CEO; there are business segment heads," who acquire clients, Tarun Sisodia, a Mumbai-based analyst at Anand Rathi Financial Services Ltd., said by phone before the announcement. "Now the question is, when will they announce their plan for integration."
The Pune-based Tech Mahindra, partly owned by BT Group Plc, is the smaller of the two companies and had 25,429 employees at the end of December.
Set up as a venture between BT Group and India's largest utility-vehicle maker, Mahindra & Mahindra Ltd., in 1986, Tech Mahindra counts the British telecommunications company as its largest client and mainly serves phone companies in Europe.
"Right now we have to roll up our sleeves and get this car back on track," said Mahindra.
To contact the reporters on this story: Vipin Nair in Mumbai at vnair12@bloomberg.net Harichandan Arakali in Bangalore at harakali@bloomberg.net .
Tuesday, June 23, 2009
GOOD NIGHT
HELLO,
MARKET ENDED ALMOST FLAT. IT COVERED UP AND FROM AROUND 250 MINUS IT WENT UP TO JUST 57 MINUS. IT WIL BE SIDEWISE OR RISE BUT THERE IS NOT MUCH DOWNSIDE. HENCE, GO LONG ON EACH FALL INSTEAD OF SHORT ON RISE. MARKET REMAINS VOLATILE DURING THE DAY SO 3-4 DAYS POSITION SHOULD BE BUILT AND INTRA DAY SHOULD BE AVOIDED.
TOMORROW'S PICK :
TATA ELXI
ABAN OFFSHORE
JAYSHREE TEA
MCLEOD RUSSEL
LIC HSNG FIN
ESSAR OIL
GMDC
LANCO INFRA
PUNJ LLOYD
RELIANCE
SEE YOU ON MARKET OPENING,
GOOD NIGHT,
BYE,
JAGRUTI.
MARKET ENDED ALMOST FLAT. IT COVERED UP AND FROM AROUND 250 MINUS IT WENT UP TO JUST 57 MINUS. IT WIL BE SIDEWISE OR RISE BUT THERE IS NOT MUCH DOWNSIDE. HENCE, GO LONG ON EACH FALL INSTEAD OF SHORT ON RISE. MARKET REMAINS VOLATILE DURING THE DAY SO 3-4 DAYS POSITION SHOULD BE BUILT AND INTRA DAY SHOULD BE AVOIDED.
TOMORROW'S PICK :
TATA ELXI
ABAN OFFSHORE
JAYSHREE TEA
MCLEOD RUSSEL
LIC HSNG FIN
ESSAR OIL
GMDC
LANCO INFRA
PUNJ LLOYD
RELIANCE
SEE YOU ON MARKET OPENING,
GOOD NIGHT,
BYE,
JAGRUTI.
INDUSTRY CONNECTED WITH RAIL
Image via Wikipedia
TITAGARH WAGON
KALINDEE RAIL
BEML
ETC. PRE RAIL BUDGET, WILL GET GOOD RISE IN A FEW DAYS.
MARKET HEADING TOWARDS SHARP RISE IN A FEW DAYS BUY AT DIPS.
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IMPORTANT
DO NOT ENTER TRADE FOR INTRA DAY , AS VOLATILITY WILL BE VERY HIGH AND IT WILL BE PURE SPECULATION. BUY FOR SHORT TERM OR MEDIUM TERM AND RETURN WILL BE REALLY GOOD.
MARKET OPENED GAP DOWN
MARKET RECOVERING ON SHORT COVERING AND FRESH BUYING. BUY ON DIPS.
BUY:
ABAN
ICICI
BUY:
ABAN
ICICI
Stocks, Commodities Fall
U.S., Europe Stocks Fall, Commodities Drop on Recession Concern
June 22 (Bloomberg) -- U.S. and European stocks tumbled, sending the Standard & Poor's 500 Index down the most in two months, as the World Bank said the recession will be deeper than previously forecast. Treasuries rose, while oil fell below $67 a barrel and metals slumped.
Freeport-McMoRan Copper & Gold Inc. and Alcoa Inc. sank at least 8.9 percent, while BP Plc and Occidental Petroleum Corp. lost more than 3.8 percent amid the biggest retreat in the Reuters/Jefferies CRB Index of 19 raw materials in almost three weeks. Bank of America Corp. dropped 9.7 percent as two board members resigned. Both the S&P 500 and Dow Jones Industrial Average erased their gains for the year.
"The worries are still out there," said John Wilson, who helps oversee $120 billion as chief market technician at Morgan Keegan & Co. in Memphis, Tennessee. "Nobody is ready to get the trumpets out and herald the end of the recession."
The S&P 500 slid 3.1 percent to 893.04 at 4:05 p.m. in New York following last week's 2.6 percent slump. The Dow average sank 200.72 points, or 2.4 percent, to 8,339.01. Europe's Dow Jones Stoxx 600 fell 2.8 percent and the MSCI World Index decreased 2.7 percent. Almost 14 stocks fell for each rising on the New York Stock Exchange, the broadest sell-off since May 13.
Stocks and commodities slid as the World Bank said unemployment and poverty will rise in developing nations and predicted a 2.9 percent contraction in the global economy this year. That compares with a prior estimate of a 1.7 percent decline. Growth is expected to return in 2010 at 2 percent, less than the 2.3 percent forecast about three months ago.
Rebound Pared
While the S&P 500 is still up 32 percent from a 12-year low on March 9, the index has fallen 5.6 percent since June 12. Executives at U.S. companies are taking advantage of the biggest stock-market rally in 71 years to sell their shares at the fastest pace since credit markets started to seize up two years ago. Insiders of S&P 500 companies were net sellers for 14 straight weeks as the market rallied, according to data compiled by InsiderScmaore.com.
The S&P 500 today slid below 900.77, its average level over the past 200 days, in a bearish signal to analysts who study charts to predict market movements.
Nouriel Roubini, the New York University economics professor who predicted the financial crisis, said the global economy may suffer another slump due to higher oil prices and widening budget deficits.
"I see the worry of a double whammy" from energy costs and fiscal burdens, increasing the risk of a setback in the economic recovery, Roubini told a conference in Paris today. Oil may rise to $100 a barrel, he said.
Commodities Slump
Freeport-McMoRan, the world's largest publicly traded copper producer, plunged 11 percent to $45.18 for the biggest decline since March 2. U.S. Steel sank 9.2 percent to $34.12. Alcoa decreased 8.9 percent to $10.02. The strengthening dollar dulled the appeal of commodities as an alternative investment, helping send copper, gasoline and oil prices lower.
Exxon Mobil Corp. retreated the most in three months, losing 3.1 percent to $68.84. BP, Europe's second-largest oil company, lost 3.8 percent to 478 pence in London. Crude oil fell for a second straight day in New York, sliding 3.8 percent to $66.93, on concern that fuel demand will remain depressed.
Commodity shares declined even as Anglo American Plc rallied 4.6 percent in London after Xstrata Plc proposed a "merger of equals" with the mining company.
Banks Slide
Bank of America tumbled 9.7 percent to $11.94, the steepest decline in more than a month. The lender that took $45 billion in U.S. aid said board members Tommy Franks and Joseph Prueher resigned, pushing the total of departing directors to seven since April.
Wells Fargo & Co. and JPMorgan Chase & Co. lost more than 6 percent, dragging a measure of financial stocks down 6.2 percent for the biggest slump among the 10 industry groups.
Mortgage originations in the U.S. may total $2.03 trillion this year, 27 percent less than earlier forecast, as rising interest rates reduce home refinancings, the Mortgage Bankers Association said.
Walgreen Co. lost 5.7 percent to $29.64. The company reported profit of 53 cents a share, missing the average analyst estimate by 6 percent, according to Bloomberg data.
CarMax Inc. declined 8.3 percent to $14.04. The biggest U.S. used-car dealer was cut to "hold" from "buy" at Deutsche Bank AG, which said the risk-reward ratio for the company's stock is more balanced after its recent rally.
'Remain Weak'
Federal Reserve officials on June 24, at the conclusion of their two-day meeting, may say the U.S. is showing signs of emerging from the worst recession in a half century. Following their last meeting in April, policy makers said the economy will "remain weak for a time." The central bankers will also keep the benchmark interest rate in the range of zero to 0.25 percent, economists said.
Apple Inc. slipped 1.5 percent to $137.37. Apple Chief Executive Officer Steve Jobs had a liver transplant about two months ago, a person familiar with the matter said. Jobs, a cancer survivor, went on medical leave in January after saying he wanted to take himself out of the limelight and focus on his health. Apple should disclose whether he had a liver transplant if he returns to work this month in the role of CEO, corporate governance experts said.
Apple slipped even after saying it sold more than 1 million iPhone 3G S units in the device's opening weekend. Piper Jaffray & Co. predicted sales of about 750,000 after initially forecasting 500,000 in the debut weekend. Apple also said 6 million people have downloaded its new iPhone 3.0 software in the five days it's been out.
Bonds Gain
Treasuries advanced for a second day as the World Bank forecast made it more likely the Fed will keep interest rates near zero for longer. Traders reduced bets the central bank will raise borrowing costs by the end of the year, according to futures on the Chicago Board of Trade.
Today's slide extended losses from the S&P 500's 2.6 percent drop last week, its first weekly decline in more than a month. Last week's retreat came as lower crude oil hurt fuel producers and S&P downgraded the credit ratings of 18 banks.
The benchmark index for U.S. stock options jumped the most since April 20 today. The VIX, as the Chicago Board Options Exchange Volatility Index is known, increased 11 percent to 31.17. The index, which measures the cost of using options as insurance against declines in the S&P 500, is down from a record 80.86 in November yet above its 20 average over its 19-year history.
The S&P 500 has risen or fallen by more than 3 percent on 23 trading days this year, the third-most in the benchmark's 81- year history after 1932 and 1933, according to Howard Silverblatt, the senior index analyst at S&P in New York.
To contact the reporter on this story: Lynn Thomasson in New York at lthomasson@bloomberg.net .
June 22 (Bloomberg) -- U.S. and European stocks tumbled, sending the Standard & Poor's 500 Index down the most in two months, as the World Bank said the recession will be deeper than previously forecast. Treasuries rose, while oil fell below $67 a barrel and metals slumped.
Freeport-McMoRan Copper & Gold Inc. and Alcoa Inc. sank at least 8.9 percent, while BP Plc and Occidental Petroleum Corp. lost more than 3.8 percent amid the biggest retreat in the Reuters/Jefferies CRB Index of 19 raw materials in almost three weeks. Bank of America Corp. dropped 9.7 percent as two board members resigned. Both the S&P 500 and Dow Jones Industrial Average erased their gains for the year.
"The worries are still out there," said John Wilson, who helps oversee $120 billion as chief market technician at Morgan Keegan & Co. in Memphis, Tennessee. "Nobody is ready to get the trumpets out and herald the end of the recession."
The S&P 500 slid 3.1 percent to 893.04 at 4:05 p.m. in New York following last week's 2.6 percent slump. The Dow average sank 200.72 points, or 2.4 percent, to 8,339.01. Europe's Dow Jones Stoxx 600 fell 2.8 percent and the MSCI World Index decreased 2.7 percent. Almost 14 stocks fell for each rising on the New York Stock Exchange, the broadest sell-off since May 13.
Stocks and commodities slid as the World Bank said unemployment and poverty will rise in developing nations and predicted a 2.9 percent contraction in the global economy this year. That compares with a prior estimate of a 1.7 percent decline. Growth is expected to return in 2010 at 2 percent, less than the 2.3 percent forecast about three months ago.
Rebound Pared
While the S&P 500 is still up 32 percent from a 12-year low on March 9, the index has fallen 5.6 percent since June 12. Executives at U.S. companies are taking advantage of the biggest stock-market rally in 71 years to sell their shares at the fastest pace since credit markets started to seize up two years ago. Insiders of S&P 500 companies were net sellers for 14 straight weeks as the market rallied, according to data compiled by InsiderScmaore.com.
The S&P 500 today slid below 900.77, its average level over the past 200 days, in a bearish signal to analysts who study charts to predict market movements.
Nouriel Roubini, the New York University economics professor who predicted the financial crisis, said the global economy may suffer another slump due to higher oil prices and widening budget deficits.
"I see the worry of a double whammy" from energy costs and fiscal burdens, increasing the risk of a setback in the economic recovery, Roubini told a conference in Paris today. Oil may rise to $100 a barrel, he said.
Commodities Slump
Freeport-McMoRan, the world's largest publicly traded copper producer, plunged 11 percent to $45.18 for the biggest decline since March 2. U.S. Steel sank 9.2 percent to $34.12. Alcoa decreased 8.9 percent to $10.02. The strengthening dollar dulled the appeal of commodities as an alternative investment, helping send copper, gasoline and oil prices lower.
Exxon Mobil Corp. retreated the most in three months, losing 3.1 percent to $68.84. BP, Europe's second-largest oil company, lost 3.8 percent to 478 pence in London. Crude oil fell for a second straight day in New York, sliding 3.8 percent to $66.93, on concern that fuel demand will remain depressed.
Commodity shares declined even as Anglo American Plc rallied 4.6 percent in London after Xstrata Plc proposed a "merger of equals" with the mining company.
Banks Slide
Bank of America tumbled 9.7 percent to $11.94, the steepest decline in more than a month. The lender that took $45 billion in U.S. aid said board members Tommy Franks and Joseph Prueher resigned, pushing the total of departing directors to seven since April.
Wells Fargo & Co. and JPMorgan Chase & Co. lost more than 6 percent, dragging a measure of financial stocks down 6.2 percent for the biggest slump among the 10 industry groups.
Mortgage originations in the U.S. may total $2.03 trillion this year, 27 percent less than earlier forecast, as rising interest rates reduce home refinancings, the Mortgage Bankers Association said.
Walgreen Co. lost 5.7 percent to $29.64. The company reported profit of 53 cents a share, missing the average analyst estimate by 6 percent, according to Bloomberg data.
CarMax Inc. declined 8.3 percent to $14.04. The biggest U.S. used-car dealer was cut to "hold" from "buy" at Deutsche Bank AG, which said the risk-reward ratio for the company's stock is more balanced after its recent rally.
'Remain Weak'
Federal Reserve officials on June 24, at the conclusion of their two-day meeting, may say the U.S. is showing signs of emerging from the worst recession in a half century. Following their last meeting in April, policy makers said the economy will "remain weak for a time." The central bankers will also keep the benchmark interest rate in the range of zero to 0.25 percent, economists said.
Apple Inc. slipped 1.5 percent to $137.37. Apple Chief Executive Officer Steve Jobs had a liver transplant about two months ago, a person familiar with the matter said. Jobs, a cancer survivor, went on medical leave in January after saying he wanted to take himself out of the limelight and focus on his health. Apple should disclose whether he had a liver transplant if he returns to work this month in the role of CEO, corporate governance experts said.
Apple slipped even after saying it sold more than 1 million iPhone 3G S units in the device's opening weekend. Piper Jaffray & Co. predicted sales of about 750,000 after initially forecasting 500,000 in the debut weekend. Apple also said 6 million people have downloaded its new iPhone 3.0 software in the five days it's been out.
Bonds Gain
Treasuries advanced for a second day as the World Bank forecast made it more likely the Fed will keep interest rates near zero for longer. Traders reduced bets the central bank will raise borrowing costs by the end of the year, according to futures on the Chicago Board of Trade.
Today's slide extended losses from the S&P 500's 2.6 percent drop last week, its first weekly decline in more than a month. Last week's retreat came as lower crude oil hurt fuel producers and S&P downgraded the credit ratings of 18 banks.
The benchmark index for U.S. stock options jumped the most since April 20 today. The VIX, as the Chicago Board Options Exchange Volatility Index is known, increased 11 percent to 31.17. The index, which measures the cost of using options as insurance against declines in the S&P 500, is down from a record 80.86 in November yet above its 20 average over its 19-year history.
The S&P 500 has risen or fallen by more than 3 percent on 23 trading days this year, the third-most in the benchmark's 81- year history after 1932 and 1933, according to Howard Silverblatt, the senior index analyst at S&P in New York.
To contact the reporter on this story: Lynn Thomasson in New York at lthomasson@bloomberg.net .
Good Morning
Hi there,
Good morning friends. Us market last night was very bad , our market yesterday too. Market may not give proper indication on its future trends now as it will be biased with the expiry of f & o june series. US markets have important events to watch today and we have our budgets ahead. Market looks range bound now and range has been shifted lower.
Ahead of budget, Kalindee Rail, BEML looks good.Mphasis Ltd. is still good. All infrastructure shares are cheaper now. Buy on dips for longer period view. Intra day volatility is killing and hence avoid intra day trading. In medium term market is promising.
More on market opening,
Have a nice day,
Jagruti
THOUGHT OF THE DAY : THE MAN WITH IMAGINATION IS NEVER ALONE.
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Good morning friends. Us market last night was very bad , our market yesterday too. Market may not give proper indication on its future trends now as it will be biased with the expiry of f & o june series. US markets have important events to watch today and we have our budgets ahead. Market looks range bound now and range has been shifted lower.
Ahead of budget, Kalindee Rail, BEML looks good.Mphasis Ltd. is still good. All infrastructure shares are cheaper now. Buy on dips for longer period view. Intra day volatility is killing and hence avoid intra day trading. In medium term market is promising.
More on market opening,
Have a nice day,
Jagruti
THOUGHT OF THE DAY : THE MAN WITH IMAGINATION IS NEVER ALONE.
Monday, June 22, 2009
IMPORTANT
TODAY'S CALLS CAN BE ENTERED FOR INTRA DAY OR TILL 3-4 DAYS. MARKET LOOKS POSITIVE ATLEAST IN SHORT TERM.
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Good Morning
Hi Frenz,
Market looks good on globaltrend and also our country specific cues. But it will remain volatile during the day.
Stock to watch :
Mphasis Ltd.
Il&fs Invst.
Central Bank
Cipla
Nicholas Piramal
Reliance
Have a good trading day,
Regards,
Jagruti
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Market looks good on globaltrend and also our country specific cues. But it will remain volatile during the day.
Stock to watch :
Mphasis Ltd.
Il&fs Invst.
Central Bank
Cipla
Nicholas Piramal
Reliance
Have a good trading day,
Regards,
Jagruti
Friday, June 19, 2009
WEEK ENDS......with happy note !!
Image via Wikipedia
Hi.
Wow, amazing volatility today !! Session ends in green and that too so high !! Within no time from red it rallied and in 40 minutes it was in 260 point up !! Have you calculated intra day volatility ? It was expected to be volatile but not so much ! The reason was short covering. The shorts which were built in last 3-4 sessions were covered as it was end of the week today and the traders did not want to carry the position over the week end. As such the market was oversold and it has risen at the close, the stochastic indicators suggest the sharp rise again , may be till the recent top of 15,580. It will rise beyond that if it crosses and stays above this top convincingly for 3-4 day, as I had said earlier too. Now bulls will dare to trade.
Beaten down stocks of worth are good buy. Shorts must be closed at this point.
Many of my fans several times convey me that they find trading such a high volatility very tough. They say that it is difficult to get my worthy stock tips in time as they have to keep the blog open and keep refreshing it or they get tips only when they open my blog. Many a times they want to ask me something they can not do that during the trading hours. They want my personal advise. Unhhh...it is hard as I am also busy trading for myself. But, surely I will think over it and we will work it out if we can be in touch through msn chat where at a time I can address many people. The timely action according to the market can be taken, then. Timing the market is very very important.
It is like running in the dark , trading this market without real time data and softwares. These things work as a torch and I will be with you holding your hand alongwith the knowledge of how to use them. Having a torch and holding somebody's hand , don't you think it is simpler to trade and gives more confidence too ? Yes, we will beat the darkness.
Let me know if you are interested,
Happy days are here again,
Wish you a happy week end,
Jagruti.
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MARKET
SENSEX SLIDING , ADVANCE DECLINE RATIO WORSENING. BUY LATE HOURS TODAY TO CARRY ON THE TRADE, NEXT WEEK MARKET WILL RISE WITH MOMENTUM.
SINCERE ADVISE
DO NOT TRADE INTRA DAY AS MARKET WILL BE VERY VOLATILE AND MAY END IN RED. BUY IN DIPS THE RECOMMENDED SHARES AND HOLD FOR MINIMUM 3-4 DAYS. RATE OF RETURN WILL BE GOOD AS IN 2-3 DAYS ONLY MARKET HAS GIVEN AWAY MANY POINTS.
Good Morning
Image by Thai Jasmine via Flickr
A very good morning.
Global cues are better. Asian markets good. Lets hope we do not slide more today. Though our market has now very limited downside, it may remain flat today being the last trading day of the week and show rise on Monday. Yesterday the market was very volatile, making very hard for the traders to trade. FII sell and DIIs buy but net effect is sell. Hence, market decline but it is near support level. Shorts should not be built at this level. Buying at this level for 10-15 days will give good return.
Today's pick :
Tech Mahindra
Mphasis for short term.
More on the opening bell,
Have a nice day,
Regards,
Jagruti.
THOUGHT OF THE DAY : A good deed is never lost.
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Asian Stocks Advance
Asian Stocks Advance on U.S. Economic Reports, Weakening Yen
June 19 (Bloomberg) -- Asian stocks rose, paring the MSCI Asia Pacific Index's biggest weekly decline since March, as better-than-estimated U.S. economic reports boosted the dollar.
Canon Inc., which gets 28 percent of its sales from the Americas, jumped 3.6 percent as a weaker yen lifted prospects for overseas earnings. WorleyParsons Ltd. climbed 5.5 percent, leading energy stocks higher, after forecasting "good growth" for fiscal 2009. Mitsubishi Corp., a trading company that gets more than half its earnings from commodities, added 1.5 percent as copper prices rose in New York.
The MSCI Asia Pacific Index gained 0.4 percent to 100.97 as of 11:35 a.m. in Tokyo, with five stocks rising for every four that fell. The gauge has lost 4 percent this week, paring its rally from a five-year low on March 9 to 43 percent.
"It's a tug of war between the bulls and bears," said Matt Riordan, who helps manage about $3.2 billion at Paradice Investment Management in Sydney. "There's the belief that this is the start of the upturn and that things will keep improving, and on the flip side that things have come too far too fast."
Japan's Nikkei 225 Stock Average rose 0.6 percent, led by industrial-plant builder Chiyoda Corp., which climbed 5.6 percent after the Nikkei newspaper said the company won an order in Saudi Arabia. Elpida Memory Inc., Japan's biggest maker of memory chips, jumped 3.7 percent after the Nikkei said the company may apply for funding from the Development Bank of Japan.
Hong Kong's Hang Seng Index gained 0.4 percent, while Australia's S&P/ASX 200 Index added 0.2 percent.
Futures on the Standard & Poor's 500 Index rose 0.1 percent, while Treasuries advanced as yields near the highest level in a week lured some investors.
Leading Index
The S&P 500 climbed 0.8 percent yesterday as the New York- based Conference Board said its leading economic index rose 1.2 percent last month, exceeding the 1 percent gain estimated by economists. The Federal Reserve Bank of Philadelphia's general economic index jumped to the highest level in nine months.
The reports are the latest in a string of figures that have boosted optimism that the global economy is recovering, helping drive the MSCI World Index's 39 percent rally from a 13-year low on March 9. The World Bank yesterday raised its forecast for Chinese economic growth, while Japan's central bank upgraded its assessment of the country's economy on June 17.
"Some positive reinforcing pieces of economic data are helping things up," said Paradice's Riordan.
Rising Valuations
The MSCI Asia Pacific Index's decline this week, the first in five, came amid concern the rally since March had made stocks expensive relative to outlooks for profit. The average valuation of companies in the gauge rose to 1.5 times the net value of assets as of the end of last week, the highest level since Sept. 26, according to Bloomberg data.
Companies the measure trade at 23 times estimated net income, higher than 15.5 times for the S&P 500 Index and 12.8 times for Europe's Dow Jones Stoxx 600 Index.
Canon jumped 3.6 percent to 3,210 yen as the yen depreciated to as weak as 96.62 per dollar today from 95.88 at the 3 p.m. close of stock trading in Tokyo yesterday. A weaker yen boosts the value of overseas sales at Japanese companies.
Sony Corp., an electronics maker that gets a quarter of its sales from the U.S., gained 1.6 percent to 2,515 yen. Howard Stringer, the company's chief executive officer, told shareholders today that the company is "seeing steady progress" on a cost-cutting plan.
Best Performers
Mitsubishi Corp. gained 1.5 percent to 1,820 yen. BHP Billiton Ltd., the world's largest mining company, added 0.4 percent to A$34.82. Copper futures in New York and an index of six metals traded in London gained 0.6 percent yesterday.
Materials producers are the best performing of the MSCI Asia Pacific Index's 10 industry groups in the past month amid optimism a global economic recovery will spur commodities demand.
WorleyParsons rose 5.3 percent to A$24.20 after forecasting growth in fiscal 2009 and said contracts it won recently will support earnings in the 2010 financial year. The company also said it signed two nuclear power plant contracts in Egypt.
Chiyoda rose 5.6 percent to 808 yen in Tokyo after the Nikkei reported the company won a 100 billion yen ($1 billion) order in Saudi Arabia with Samsung Engineering Co. Seoul-based Samsung Engineering lost 0.6 percent to 84,500 won.
Elpida climbed 3.7 percent to 1,073 yen. The company may seek as much as 40 billion yen ($416 million) by selling up to 30 billion yen in preferred shares and borrowing a maximum of 10 billion yen, Nikkei said, without saying how it got the information.
The report isn't based on any announcement from Elpida, the Tokyo-based company said in a statement today. The company said earlier this year that it was considering applying for public funds.
To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net .
June 19 (Bloomberg) -- Asian stocks rose, paring the MSCI Asia Pacific Index's biggest weekly decline since March, as better-than-estimated U.S. economic reports boosted the dollar.
Canon Inc., which gets 28 percent of its sales from the Americas, jumped 3.6 percent as a weaker yen lifted prospects for overseas earnings. WorleyParsons Ltd. climbed 5.5 percent, leading energy stocks higher, after forecasting "good growth" for fiscal 2009. Mitsubishi Corp., a trading company that gets more than half its earnings from commodities, added 1.5 percent as copper prices rose in New York.
The MSCI Asia Pacific Index gained 0.4 percent to 100.97 as of 11:35 a.m. in Tokyo, with five stocks rising for every four that fell. The gauge has lost 4 percent this week, paring its rally from a five-year low on March 9 to 43 percent.
"It's a tug of war between the bulls and bears," said Matt Riordan, who helps manage about $3.2 billion at Paradice Investment Management in Sydney. "There's the belief that this is the start of the upturn and that things will keep improving, and on the flip side that things have come too far too fast."
Japan's Nikkei 225 Stock Average rose 0.6 percent, led by industrial-plant builder Chiyoda Corp., which climbed 5.6 percent after the Nikkei newspaper said the company won an order in Saudi Arabia. Elpida Memory Inc., Japan's biggest maker of memory chips, jumped 3.7 percent after the Nikkei said the company may apply for funding from the Development Bank of Japan.
Hong Kong's Hang Seng Index gained 0.4 percent, while Australia's S&P/ASX 200 Index added 0.2 percent.
Futures on the Standard & Poor's 500 Index rose 0.1 percent, while Treasuries advanced as yields near the highest level in a week lured some investors.
Leading Index
The S&P 500 climbed 0.8 percent yesterday as the New York- based Conference Board said its leading economic index rose 1.2 percent last month, exceeding the 1 percent gain estimated by economists. The Federal Reserve Bank of Philadelphia's general economic index jumped to the highest level in nine months.
The reports are the latest in a string of figures that have boosted optimism that the global economy is recovering, helping drive the MSCI World Index's 39 percent rally from a 13-year low on March 9. The World Bank yesterday raised its forecast for Chinese economic growth, while Japan's central bank upgraded its assessment of the country's economy on June 17.
"Some positive reinforcing pieces of economic data are helping things up," said Paradice's Riordan.
Rising Valuations
The MSCI Asia Pacific Index's decline this week, the first in five, came amid concern the rally since March had made stocks expensive relative to outlooks for profit. The average valuation of companies in the gauge rose to 1.5 times the net value of assets as of the end of last week, the highest level since Sept. 26, according to Bloomberg data.
Companies the measure trade at 23 times estimated net income, higher than 15.5 times for the S&P 500 Index and 12.8 times for Europe's Dow Jones Stoxx 600 Index.
Canon jumped 3.6 percent to 3,210 yen as the yen depreciated to as weak as 96.62 per dollar today from 95.88 at the 3 p.m. close of stock trading in Tokyo yesterday. A weaker yen boosts the value of overseas sales at Japanese companies.
Sony Corp., an electronics maker that gets a quarter of its sales from the U.S., gained 1.6 percent to 2,515 yen. Howard Stringer, the company's chief executive officer, told shareholders today that the company is "seeing steady progress" on a cost-cutting plan.
Best Performers
Mitsubishi Corp. gained 1.5 percent to 1,820 yen. BHP Billiton Ltd., the world's largest mining company, added 0.4 percent to A$34.82. Copper futures in New York and an index of six metals traded in London gained 0.6 percent yesterday.
Materials producers are the best performing of the MSCI Asia Pacific Index's 10 industry groups in the past month amid optimism a global economic recovery will spur commodities demand.
WorleyParsons rose 5.3 percent to A$24.20 after forecasting growth in fiscal 2009 and said contracts it won recently will support earnings in the 2010 financial year. The company also said it signed two nuclear power plant contracts in Egypt.
Chiyoda rose 5.6 percent to 808 yen in Tokyo after the Nikkei reported the company won a 100 billion yen ($1 billion) order in Saudi Arabia with Samsung Engineering Co. Seoul-based Samsung Engineering lost 0.6 percent to 84,500 won.
Elpida climbed 3.7 percent to 1,073 yen. The company may seek as much as 40 billion yen ($416 million) by selling up to 30 billion yen in preferred shares and borrowing a maximum of 10 billion yen, Nikkei said, without saying how it got the information.
The report isn't based on any announcement from Elpida, the Tokyo-based company said in a statement today. The company said earlier this year that it was considering applying for public funds.
To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net .
Thursday, June 18, 2009
IMPORTANT
ALL BUY CALLS ARE STRICTLY INTRA DAY. MARKET IS AT VERY CRUCIAL LEVEL AND SHORT TERM TREND IS NOT KNOWN YET.
Market Now
Market is very volatile, stay on sideline and wait the intra day trend to settle. Buying at lower level is witnessed.
Looking good:
Rel Cap
Jet Airways
Looking good:
Rel Cap
Jet Airways
Good Morning
Image by wallyg via Flickr
Market does not look too good today. Heavy selling by FIIs, built up of new shorts in the market, profit booking and little nervousness due to global trends market will remain weak at least this week and further trends will be decided later.
For the time being, traders should be stock specific and investors should not panic.
More on market opening,
Regards,
Jagruti.
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THOUGHT OF THE DAY : There is no road to success but through a clear strong will power .Wednesday, June 17, 2009
MARKET NOW
ADVANCE DECLINE RATIO GOOD, WILL PULL MARKET UP. MORE BUYING WITNESSED THAN SELLING.
GOOD:
BOMBAY DYEING
CENTURY TEXTILES
JAYSHREE TEA
GOOD:
BOMBAY DYEING
CENTURY TEXTILES
JAYSHREE TEA
Jagruti's Research on BSE/NSE
I found this fascinating quote today:
Have you noticed from following this blog, that when share picks appear, after some days of run in that scrip, the news in that also arrive. e.g. Mahindra and Mahindra was recommended since many days and today is the news. Sesa Goa, JSW steel were recommended and then after their run up news arrived of import duty on steel. This is the worth of technical analysis, it gives you pick before the market gets the news. You can buy before actual demand comes and before the price rises too much. Thus, you can get the advantage of the price difference and earn more. Jagruti Fadia, Jagruti's Research on BSE/NSE, Jun 2009
You should read the whole article.
Jagruti's Research on BSE/NSE
I found this fascinating quote today:
Have you noticed from following this blog, that when share picks appear, after some days of run in that scrip, the news in that also arrive. e.g. Mahindra and Mahindra was recommended since many days and today is the news. Sesa Goa, JSW steel were recommended and then after their run up news arrived of import duty on steel. This is the worth of technical analysis, it gives you pick before the market gets the news. You can buy before actual demand comes and before the price rises too much. Thus, you can get the advantage of the price difference and earn more. Jagruti Fadia, Jagruti's Research on BSE/NSE, Jun 2009
You should read the whole article.
Good Morning
Hello Friends,
How are you all doing ?
Have you noticed from following this blog, that when share picks appear, after some days of run in that scrip, the news in that also arrive. e.g. Mahindra and Mahindra was recommended since many days and today is the news. Sesa Goa, JSW steel were recommended and then after their run up news arrived of import duty on steel. This is the worth of technical analysis, it gives you pick before the market gets the news. You can buy before actual demand comes and before the price rises too much. Thus, you can get the advantage of the price difference and earn more.
Today, market does not look very good based on weak global cues and continuous selling by FIIs.
Market intermittant trend looks weak and downward and one should be stock specific.
Lets meet again on the opening bell,
Wish you a very happy trading day,
Jagruti.
Thought of the day : It is not hard to make decisions, when you know what your values are.
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How are you all doing ?
Have you noticed from following this blog, that when share picks appear, after some days of run in that scrip, the news in that also arrive. e.g. Mahindra and Mahindra was recommended since many days and today is the news. Sesa Goa, JSW steel were recommended and then after their run up news arrived of import duty on steel. This is the worth of technical analysis, it gives you pick before the market gets the news. You can buy before actual demand comes and before the price rises too much. Thus, you can get the advantage of the price difference and earn more.
Today, market does not look very good based on weak global cues and continuous selling by FIIs.
Market intermittant trend looks weak and downward and one should be stock specific.
Lets meet again on the opening bell,
Wish you a very happy trading day,
Jagruti.
Thought of the day : It is not hard to make decisions, when you know what your values are.
Mahindra n mahindra
Mahindra's Pickups to Help India Beat China Into U.S. Market
June 17 (Bloomberg) -- Mahindra & Mahindra Ltd., India's largest maker of sport-utility vehicles, is betting its diesel pickup trucks can beat the Chinese to the U.S. market.
Early next year, Mumbai-based Mahindra plans to start selling small 2- and 4-door pickups with a diesel engine that meets California's strict exhaust rules. U.S. plans for Chinese brands such as Chery Automobile Co. and Geely Automobile Holdings Ltd. have yet to materialize, five years into their announcements.
"Once you establish the brand, volumes will come," Pawan Goenka, Mahindra's president in charge of the automotive business, said in a June 16 interview. "There is a hole available to us which is not populated."
Mahindra's trucks will arrive in the U.S. even as recession and job losses have pushed auto sales to the lowest in three decades, triggering bankruptcy filings for General Motors Corp. and Chrysler LLC. A weak economy and cheaper diesel prices may help the Indian automaker win buyers seeking a bargain, said industry analyst Eric Noble.
"It's not a bad time to launch a durable, value-oriented brand," said Noble, president of Car Lab, an Orange, California-based consulting firm for automakers. "There's no real competition in compact trucks with a diesel powertrain."
"Totally Unknown"
With a brand that's "totally unknown" to U.S. customers, an Indian automaker will face the same challenges Hyundai Motor Co., Toyota Motor Corp. and Honda Motor Co. faced when they entered the world's largest economy, said Puneet Gupta, a New Delhi-based analyst at CSM Worldwide Inc. In India, Mahindra makes Scorpio and Bolero SUVs.
"It's a big challenge," Gupta said. "Selling a very cheap vehicle may not work. Selling in a matured market may also spoil your reputation if your product is not up-to-the expectations of customers there."
The vehicles will be "competitive" with similar vehicles in the range of $20,000 to less than $30,000, Goenka said, without giving a specific price. The company has spent between $60 million and $70 million in reworking its Scorpio SUV into a pickup for the U.S. market. Mahindra has set up a network of 336 dealers throughout the country.
Fuel Economy
Mahindra expects the pickups to get at least 30 miles per gallon in highway driving and carry a payload of at least 2,600 pounds. By comparison, Toyota's gasoline-engine Tacoma, the best-selling small pickup in the U.S. gets 26 mpg on the highway and can carry 1,570 pounds in its bed. Diesel engines are generally at least 20 percent more fuel efficient than gasoline engines.
Key to Mahindra's starting sales on schedule will be completing U.S. crash and safety tests by August, said Larry Daniel, senior vice president of sales and marketing at Global Vehicles U.S.A. Inc., Mahindra's distributor.
"We're cutting it close, but are confident the trucks will do well in the tests," Daniel said in a June 12 interview.
Chery, Geely
Plans for U.S. models from China's Chery, first announced in late 2004, failed because of disagreements with its U.S. distribution partner Visionary Vehicles LLC. Chrysler LLC also abandoned plans to sell Chery-made cars in the U.S. Geely, China's biggest privately owned carmaker, hasn't met its initial goal of selling cars in the U.S. by 2008 amid talks with Ford Motor Co. on buying its Volvo Car unit.
Last month, GM agreed with a United Auto Workers request to build small cars at an unnamed U.S. assembly plant instead of importing them from overseas. Detroit-based GM's initial plan was to sell a U.S. version of a car built by Chinese venture partner SAIC Motor Corp., according to the Associated Press.
The first highway-legal Chinese car in the U.S. may be the Coda sedan, a battery-powered model that Santa Monica, California-based Miles Electric Vehicles plans to retail in California in late 2010. The model will be supplied by China's Hafei Motor Co.
Mahindra was set up in 1945 as a franchise to assemble Jeeps of Willys, according to its Web site. The automaker later had a partnership with Ford Motor Co. and now makes the Logan sedan with Renault SA in India.
While China's auto market has drawn more attention, India's experience in the industry is longer, broader and more sophisticated, said Noble. China is the world's largest auto market in the first five months of the year, ahead of the U.S.
"Probably half the global vehicle structural analysis for automakers gets done overnight in India," Noble said. "Indian engineers have been part of the fabric of the automotive industry for 15 years. China's engineering capabilities are much more nascent."
Honda, which entered the U.S. pickup market four years ago with the midsize Ridgeline model, said Mahindra should be viewed as a serious competitor.
"We discount any new entrants at our own peril," said John Mendel, Honda's U.S. executive vice president, in a June 11 interview. "I think they can get it right."
To contact the reporters on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net Vipin V. Nair in Mumbai at vnair12@bloomberg.net .
June 17 (Bloomberg) -- Mahindra & Mahindra Ltd., India's largest maker of sport-utility vehicles, is betting its diesel pickup trucks can beat the Chinese to the U.S. market.
Early next year, Mumbai-based Mahindra plans to start selling small 2- and 4-door pickups with a diesel engine that meets California's strict exhaust rules. U.S. plans for Chinese brands such as Chery Automobile Co. and Geely Automobile Holdings Ltd. have yet to materialize, five years into their announcements.
"Once you establish the brand, volumes will come," Pawan Goenka, Mahindra's president in charge of the automotive business, said in a June 16 interview. "There is a hole available to us which is not populated."
Mahindra's trucks will arrive in the U.S. even as recession and job losses have pushed auto sales to the lowest in three decades, triggering bankruptcy filings for General Motors Corp. and Chrysler LLC. A weak economy and cheaper diesel prices may help the Indian automaker win buyers seeking a bargain, said industry analyst Eric Noble.
"It's not a bad time to launch a durable, value-oriented brand," said Noble, president of Car Lab, an Orange, California-based consulting firm for automakers. "There's no real competition in compact trucks with a diesel powertrain."
"Totally Unknown"
With a brand that's "totally unknown" to U.S. customers, an Indian automaker will face the same challenges Hyundai Motor Co., Toyota Motor Corp. and Honda Motor Co. faced when they entered the world's largest economy, said Puneet Gupta, a New Delhi-based analyst at CSM Worldwide Inc. In India, Mahindra makes Scorpio and Bolero SUVs.
"It's a big challenge," Gupta said. "Selling a very cheap vehicle may not work. Selling in a matured market may also spoil your reputation if your product is not up-to-the expectations of customers there."
The vehicles will be "competitive" with similar vehicles in the range of $20,000 to less than $30,000, Goenka said, without giving a specific price. The company has spent between $60 million and $70 million in reworking its Scorpio SUV into a pickup for the U.S. market. Mahindra has set up a network of 336 dealers throughout the country.
Fuel Economy
Mahindra expects the pickups to get at least 30 miles per gallon in highway driving and carry a payload of at least 2,600 pounds. By comparison, Toyota's gasoline-engine Tacoma, the best-selling small pickup in the U.S. gets 26 mpg on the highway and can carry 1,570 pounds in its bed. Diesel engines are generally at least 20 percent more fuel efficient than gasoline engines.
Key to Mahindra's starting sales on schedule will be completing U.S. crash and safety tests by August, said Larry Daniel, senior vice president of sales and marketing at Global Vehicles U.S.A. Inc., Mahindra's distributor.
"We're cutting it close, but are confident the trucks will do well in the tests," Daniel said in a June 12 interview.
Chery, Geely
Plans for U.S. models from China's Chery, first announced in late 2004, failed because of disagreements with its U.S. distribution partner Visionary Vehicles LLC. Chrysler LLC also abandoned plans to sell Chery-made cars in the U.S. Geely, China's biggest privately owned carmaker, hasn't met its initial goal of selling cars in the U.S. by 2008 amid talks with Ford Motor Co. on buying its Volvo Car unit.
Last month, GM agreed with a United Auto Workers request to build small cars at an unnamed U.S. assembly plant instead of importing them from overseas. Detroit-based GM's initial plan was to sell a U.S. version of a car built by Chinese venture partner SAIC Motor Corp., according to the Associated Press.
The first highway-legal Chinese car in the U.S. may be the Coda sedan, a battery-powered model that Santa Monica, California-based Miles Electric Vehicles plans to retail in California in late 2010. The model will be supplied by China's Hafei Motor Co.
Mahindra was set up in 1945 as a franchise to assemble Jeeps of Willys, according to its Web site. The automaker later had a partnership with Ford Motor Co. and now makes the Logan sedan with Renault SA in India.
While China's auto market has drawn more attention, India's experience in the industry is longer, broader and more sophisticated, said Noble. China is the world's largest auto market in the first five months of the year, ahead of the U.S.
"Probably half the global vehicle structural analysis for automakers gets done overnight in India," Noble said. "Indian engineers have been part of the fabric of the automotive industry for 15 years. China's engineering capabilities are much more nascent."
Honda, which entered the U.S. pickup market four years ago with the midsize Ridgeline model, said Mahindra should be viewed as a serious competitor.
"We discount any new entrants at our own peril," said John Mendel, Honda's U.S. executive vice president, in a June 11 interview. "I think they can get it right."
To contact the reporters on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net Vipin V. Nair in Mumbai at vnair12@bloomberg.net .
Tuesday, June 16, 2009
Sensitive Index Rises
Indian Stocks Rise for First Day in Four; State Bank Gains
June 16 (Bloomberg) -- Indian stocks rose, with the benchmark Sensitive Index snapping a three-day, 3.8 percent decline. Financial companies gained after Goldman, Sachs and Co. raised its ratings of State Bank of India and other lenders.
State Bank, the nation's biggest, gained 4.4 percent. Indian Overseas Bank leapt 4.6 percent and Punjab National Bank advanced 3.2 percent. Goldman Sachs said the lenders would benefit from a rebound in the economy.
"The Indian economy and the financial sector are returning back to a potential growth path, post a period of adjustment to the intense dislocation in the global economic environment," analysts led by Sampath S.K. Kumar at Goldman Sachs said in a note to clients today.
Reliance Industries Ltd., the nation's most valuable company, fell 1.6 percent, extending yesterday's 7.8 percent drop, after its stock rating was downgraded by Kotak Securities Ltd., saying a court ruling yesterday could dent earnings.
The Bombay Stock Exchange's Sensitive Index, or Sensex, added 82.39, or 0.6 percent, to 14,957.91. It had fallen as much as 1.7 percent earlier. The S&P CNX Nifty Index on the National Stock Exchange gained 0.8 percent to 4,517.80. The BSE 200 Index rose 1.2 percent to 1,829.27.
State Bank rose 4.4 percent to 1,714.35 rupees, Indian Overseas surged 4.6 percent to 85.65 rupees and Punjab National jumped 3.2 percent to 630.85 rupees.
State Bank and Indian Overseas were raised to "buy" from "neutral," while Punjab National was upgraded to "buy" from "sell," Goldman Sachs said in a report today. State Bank was also added to the brokerage's "Conviction List," while Bank of Baroda was raised to "neutral" from "sell."
Gas-Price Ruling
Reliance fell for a second day, losing 1.6 percent to 2,143.35 rupees. The stock's rating was cut to "sell" at Kotak Securities, which cited an "unfavorable" gas-price ruling by the Bombay High Court. Reliance's price estimate was cut 5.7 percent to 1,650 rupees. An Indian court yesterday ordered the fuels explorer to sell natural gas at 44 percent less than the government-set price.
"We are seeing a rotation in sectors with investors now moving out of the commodity space and into areas like financial services again," said Shashank Khade, who helps manage $300 million in assets at Kotak Securities in Mumbai.
Overseas funds bought a net 5.19 billion rupees ($109 million) of Indian stocks on June 12, according to the nation's stock-market regulator.
The following shares were among the most active on the exchange:
Airlines: Jet Airways (India) Ltd. (JETIN IN), the nation's second-biggest domestic airline, fell 5.3 percent to 262.65 rupees. Kingfisher Airlines Ltd. (KAIR IN), India's largest domestic airline, declined 1.7 percent to 57.15 rupees.
Indian Oil Corp. (IOCL IN), the nation's largest refiner, increased jet-fuel prices 12 percent with effect from today, a company official said yesterday. The price in Mumbai, home to the country's busiest airport, was raised by 4,106 rupees to 37,367 rupees a kiloliter, the official said in a mobile-phone text message, asking not to be identified until the figures are posted on Indian Oil's Web site.
Ansal Properties & Infrastructure Ltd. (APIL IN) rose 4.9 percent to 63.30 rupees. The Indian developer will seek shareholders' approval to raise as much as 40 billion rupees selling securities to funds and by public offers.
Dr. Reddy's Laboratories (DRRD IN) gained 1 percent to 712.90 rupees. India's second-biggest drugmaker said it is planning a venture with GlaxoSmithKline Plc to market its products in emerging markets outside the South Asian country.
Sterlite Industries (India) Ltd. (STLT IN) fell 4.5 percent to 634.30 rupees. The nation's largest copper and zinc producer plans to raise funds equivalent to as much as 25 percent of the company's paid-up capital, Sterlite said yesterday. The company may increase its offer for bankrupt copper miner Asarco LLC, raising the bid to $1.87 billion from $1.7 billion, the Telegraph newspaper reported today, without saying where it obtained the information.
Mount Everest Mineral Water Ltd. (MEM IN) added 1.6 percent to 84 rupees. Tata Tea Ltd. (TT IN), the Indian company that owns brands such as Tetley, bought a further 2.05 percent stake in Mount Everest Mineral Water for 57.4 million rupees, according to a filing on the Bombay Stock Exchange.
Unitech Ltd. (UT IN) advanced 2.2 percent to 88.90 rupees. India's second-biggest developer said it has no immediate plans to offer shares after demand for homes exceeded estimates and it sold properties including hotels for 10 billion rupees.
To contact the reporter on this story: Pooja Thakur in Mumbai at 9032 or pthakur@bloomberg.net
June 16 (Bloomberg) -- Indian stocks rose, with the benchmark Sensitive Index snapping a three-day, 3.8 percent decline. Financial companies gained after Goldman, Sachs and Co. raised its ratings of State Bank of India and other lenders.
State Bank, the nation's biggest, gained 4.4 percent. Indian Overseas Bank leapt 4.6 percent and Punjab National Bank advanced 3.2 percent. Goldman Sachs said the lenders would benefit from a rebound in the economy.
"The Indian economy and the financial sector are returning back to a potential growth path, post a period of adjustment to the intense dislocation in the global economic environment," analysts led by Sampath S.K. Kumar at Goldman Sachs said in a note to clients today.
Reliance Industries Ltd., the nation's most valuable company, fell 1.6 percent, extending yesterday's 7.8 percent drop, after its stock rating was downgraded by Kotak Securities Ltd., saying a court ruling yesterday could dent earnings.
The Bombay Stock Exchange's Sensitive Index, or Sensex, added 82.39, or 0.6 percent, to 14,957.91. It had fallen as much as 1.7 percent earlier. The S&P CNX Nifty Index on the National Stock Exchange gained 0.8 percent to 4,517.80. The BSE 200 Index rose 1.2 percent to 1,829.27.
State Bank rose 4.4 percent to 1,714.35 rupees, Indian Overseas surged 4.6 percent to 85.65 rupees and Punjab National jumped 3.2 percent to 630.85 rupees.
State Bank and Indian Overseas were raised to "buy" from "neutral," while Punjab National was upgraded to "buy" from "sell," Goldman Sachs said in a report today. State Bank was also added to the brokerage's "Conviction List," while Bank of Baroda was raised to "neutral" from "sell."
Gas-Price Ruling
Reliance fell for a second day, losing 1.6 percent to 2,143.35 rupees. The stock's rating was cut to "sell" at Kotak Securities, which cited an "unfavorable" gas-price ruling by the Bombay High Court. Reliance's price estimate was cut 5.7 percent to 1,650 rupees. An Indian court yesterday ordered the fuels explorer to sell natural gas at 44 percent less than the government-set price.
"We are seeing a rotation in sectors with investors now moving out of the commodity space and into areas like financial services again," said Shashank Khade, who helps manage $300 million in assets at Kotak Securities in Mumbai.
Overseas funds bought a net 5.19 billion rupees ($109 million) of Indian stocks on June 12, according to the nation's stock-market regulator.
The following shares were among the most active on the exchange:
Airlines: Jet Airways (India) Ltd. (JETIN IN), the nation's second-biggest domestic airline, fell 5.3 percent to 262.65 rupees. Kingfisher Airlines Ltd. (KAIR IN), India's largest domestic airline, declined 1.7 percent to 57.15 rupees.
Indian Oil Corp. (IOCL IN), the nation's largest refiner, increased jet-fuel prices 12 percent with effect from today, a company official said yesterday. The price in Mumbai, home to the country's busiest airport, was raised by 4,106 rupees to 37,367 rupees a kiloliter, the official said in a mobile-phone text message, asking not to be identified until the figures are posted on Indian Oil's Web site.
Ansal Properties & Infrastructure Ltd. (APIL IN) rose 4.9 percent to 63.30 rupees. The Indian developer will seek shareholders' approval to raise as much as 40 billion rupees selling securities to funds and by public offers.
Dr. Reddy's Laboratories (DRRD IN) gained 1 percent to 712.90 rupees. India's second-biggest drugmaker said it is planning a venture with GlaxoSmithKline Plc to market its products in emerging markets outside the South Asian country.
Sterlite Industries (India) Ltd. (STLT IN) fell 4.5 percent to 634.30 rupees. The nation's largest copper and zinc producer plans to raise funds equivalent to as much as 25 percent of the company's paid-up capital, Sterlite said yesterday. The company may increase its offer for bankrupt copper miner Asarco LLC, raising the bid to $1.87 billion from $1.7 billion, the Telegraph newspaper reported today, without saying where it obtained the information.
Mount Everest Mineral Water Ltd. (MEM IN) added 1.6 percent to 84 rupees. Tata Tea Ltd. (TT IN), the Indian company that owns brands such as Tetley, bought a further 2.05 percent stake in Mount Everest Mineral Water for 57.4 million rupees, according to a filing on the Bombay Stock Exchange.
Unitech Ltd. (UT IN) advanced 2.2 percent to 88.90 rupees. India's second-biggest developer said it has no immediate plans to offer shares after demand for homes exceeded estimates and it sold properties including hotels for 10 billion rupees.
To contact the reporter on this story: Pooja Thakur in Mumbai at 9032 or pthakur@bloomberg.net
India's Steel Ministry Proposes Additional Tax on Cheap Imports
June 16 (Bloomberg) -- India's steel ministry proposed imposing a temporary additional tax on cheap imports, accepting local steelmakers' demand to curb dumping.
"We would certainly like to see that our steel industry flourishes and not face any unfair competition," Steel Minister Virbhadra Singh told reporters in New Delhi today. "We have made some proposals" to the finance ministry.
Imports of steel rose 21 percent to 528,000 metric tons last month from a year earlier, Steel Secretary Pramod Rastogi said last week, citing ministry figures. Some countries are offering prices lower than those in India, which is leading to the spurt in imports, he said, without identifying the nations.
Producers from Ukraine and Russia are willing to sell in India at below-market prices, Seshagiri Rao, chief financial officer at India's third-largest producer, JSW Steel Ltd., said in an interview on June 11. China's move to offer a rebate on steel exports will also hinder the Indian steelmakers, he said.
The government had last month rejected a plea by JSW Steel, Steel Authority of India and rivals that a 25 percent duty be imposed in addition to the existing 5 percent import tax.
"We are watching the data," Rastogi said on June 11.
To contact the reporters on this story: Debarati Roy in Mumbai at droy5@bloomberg.net Pratik Parija in New Delhi at pparija@bloomberg.net .
June 16 (Bloomberg) -- India's steel ministry proposed imposing a temporary additional tax on cheap imports, accepting local steelmakers' demand to curb dumping.
"We would certainly like to see that our steel industry flourishes and not face any unfair competition," Steel Minister Virbhadra Singh told reporters in New Delhi today. "We have made some proposals" to the finance ministry.
Imports of steel rose 21 percent to 528,000 metric tons last month from a year earlier, Steel Secretary Pramod Rastogi said last week, citing ministry figures. Some countries are offering prices lower than those in India, which is leading to the spurt in imports, he said, without identifying the nations.
Producers from Ukraine and Russia are willing to sell in India at below-market prices, Seshagiri Rao, chief financial officer at India's third-largest producer, JSW Steel Ltd., said in an interview on June 11. China's move to offer a rebate on steel exports will also hinder the Indian steelmakers, he said.
The government had last month rejected a plea by JSW Steel, Steel Authority of India and rivals that a 25 percent duty be imposed in addition to the existing 5 percent import tax.
"We are watching the data," Rastogi said on June 11.
To contact the reporters on this story: Debarati Roy in Mumbai at droy5@bloomberg.net Pratik Parija in New Delhi at pparija@bloomberg.net .
Market very volatile
Short term trend is downward. Momentum weak.
Buy TRF Ltd for medium term.
Buy TRF Ltd for medium term.
Buy tech mah
Aban
Jsw steel
Important
Today's buying calls are strictly Intraday and position must be closed
at day end.
Buy:
LT
Rcap
Bhel
Mundra port
Ivrcl
at day end.
Buy:
LT
Rcap
Bhel
Mundra port
Ivrcl
Good morning
Hi friends,
Today may not be a very good morning on our market too. Global cues
are negative. Commodities drop, dollar rise.
We are at very crucial level and market is not crossing easily the
sensex level of 15600.
Infra shares and shares to be affected by rail budget like titagarh
wagon etc can be bought on decline before the budget.
More on opening,
Have a great trading day,
Jagruti.
THOUGHT OF THE DAY:
It is always darkness just before the day dawneth.
Monday, June 15, 2009
Reliance Natural Wins Gas Ruling Against Reliance Industries
Anil Ambani Wins Court Contest With Mukesh Over Gas
June 15 (Bloomberg) -- Mukesh Ambani's Reliance Industries Ltd., India's most valuable company, was ordered to sell natural gas to a company owned by his younger brother Anil for 44 percent less than the government-set price, lawyers said.
The Bombay High Court ruled the company honor a 2005 agreement to supply 28 million cubic meters of gas per day at $2.34 per million British thermal units for 17 years, Mukul Rohatgi, counsel for Anil Ambani's Reliance Natural Resources Ltd., said by telephone today. Reliance Industries will decide on its "future course of action based on legal advice," it said in an e-mailed statement today.
Reliance Industries fell the most in five months, while Anil Ambani's company jumped 24 percent after the ruling on the dispute sparked by the splitting of the family empire in 2005.
The decision may lower the value of the gas from the Krishna-Godavari block, Reliance's largest field, by as much as $3 billion to $13 billion, according to Nomura Financial Advisory & Securities India Pvt.
"The Reliance Industries share price has factored in a gas price of $4.20," said Vinay Nair, an analyst with Khandwala Securities Ltd. in Mumbai. Much of the company's "future earnings depend on gas sales from the Krishna-Godavari basin."
The ruling may cost the energy explorer as much as $800 million a year at a peak output rate, said Angel Broking Ltd. analyst Deepak Pareek in Mumbai.
Power Plants
"Reliance Natural still needs to set up power plants which can use the gas," Pareek said by telephone today. "Cash flows will fall for Reliance Industries but it may not be immediate."
Reliance Natural's affiliates "will set up a power plant with a capacity of more than 7,000 megawatts in the next three to four years," Rohatgi said today. He didn't say if the company will take gas from Reliance Industries before the plant comes up.
The court has not allowed trading in the gas, D.J. Kakalia, one of the lawyers for Reliance Natural, said at the court house.
Reliance Industries fell 7.8 percent to 2,178.80 rupees in Mumbai, the biggest decline since Jan. 7. The stock has climbed 77 percent this year compared with the 54 percent gain in the benchmark Sensitive Index.
Reliance Natural rose 24 percent to 108.35 rupees, the highest since May 22, 2008, and has surged 89 percent this year.
Reach Agreement
The companies are required to reach an agreement based on the terms of the memorandum of understanding signed in June 2005, according to Reliance Natural's lawyers.
The Bombay High Court said "the two companies should negotiate a new agreement within a month, with price, quantity and tenure as a must," Kakalia said. "These three parameters, as per the existing MoU, must be in the new agreement."
Reliance Natural procures fuel for the Anil Dhirubhai Ambani Group's power projects. Reliance Infrastructure Ltd. operates six power plants in India and plans to build another seven, according to data compiled by Bloomberg, while Reliance Power Ltd. is building at least three large stations.
Shares of Reliance Power rose 4 percent to 200.20 rupees while Reliance Infrastructure gained 1.4 percent to 1,196.90 rupees.
Reliance Industries had signed gas sale contracts with fertilizer makers and power producers before it began producing gas from the KG-D6 field in the Bay of Bengal on April 2.
Court Restraint
The court had in a verdict in June last year restrained the company from selling gas to companies other than Reliance Natural and state-owned NTPC Ltd., customers that had signed contracts for the fuel.
The ban was temporarily lifted in January, paving the way for supplies to fuel-starved fertilizer and power companies. India, the world's second-fastest growing major economy, imports 75 percent of its energy needs.
NTPC was little changed at 221.20 rupees. Deepna Mehta, a spokeswoman for the state-owned company, declined to comment.
"The verdict wouldn't necessarily mean the case will be resolved as the parties may even appeal in a higher court," Khandwala's Nair said.
The government set the price of natural gas from the Krishna Godavari field at $4.20 per million British thermal units when the price for crude oil is equal to or more than $60 a barrel, less than the $4.5 Reliance Industries had sought.
To contact the reporters on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net M.C. Govardhana Rangan in Mumbai at grangan@bloomberg.net
June 15 (Bloomberg) -- Mukesh Ambani's Reliance Industries Ltd., India's most valuable company, was ordered to sell natural gas to a company owned by his younger brother Anil for 44 percent less than the government-set price, lawyers said.
The Bombay High Court ruled the company honor a 2005 agreement to supply 28 million cubic meters of gas per day at $2.34 per million British thermal units for 17 years, Mukul Rohatgi, counsel for Anil Ambani's Reliance Natural Resources Ltd., said by telephone today. Reliance Industries will decide on its "future course of action based on legal advice," it said in an e-mailed statement today.
Reliance Industries fell the most in five months, while Anil Ambani's company jumped 24 percent after the ruling on the dispute sparked by the splitting of the family empire in 2005.
The decision may lower the value of the gas from the Krishna-Godavari block, Reliance's largest field, by as much as $3 billion to $13 billion, according to Nomura Financial Advisory & Securities India Pvt.
"The Reliance Industries share price has factored in a gas price of $4.20," said Vinay Nair, an analyst with Khandwala Securities Ltd. in Mumbai. Much of the company's "future earnings depend on gas sales from the Krishna-Godavari basin."
The ruling may cost the energy explorer as much as $800 million a year at a peak output rate, said Angel Broking Ltd. analyst Deepak Pareek in Mumbai.
Power Plants
"Reliance Natural still needs to set up power plants which can use the gas," Pareek said by telephone today. "Cash flows will fall for Reliance Industries but it may not be immediate."
Reliance Natural's affiliates "will set up a power plant with a capacity of more than 7,000 megawatts in the next three to four years," Rohatgi said today. He didn't say if the company will take gas from Reliance Industries before the plant comes up.
The court has not allowed trading in the gas, D.J. Kakalia, one of the lawyers for Reliance Natural, said at the court house.
Reliance Industries fell 7.8 percent to 2,178.80 rupees in Mumbai, the biggest decline since Jan. 7. The stock has climbed 77 percent this year compared with the 54 percent gain in the benchmark Sensitive Index.
Reliance Natural rose 24 percent to 108.35 rupees, the highest since May 22, 2008, and has surged 89 percent this year.
Reach Agreement
The companies are required to reach an agreement based on the terms of the memorandum of understanding signed in June 2005, according to Reliance Natural's lawyers.
The Bombay High Court said "the two companies should negotiate a new agreement within a month, with price, quantity and tenure as a must," Kakalia said. "These three parameters, as per the existing MoU, must be in the new agreement."
Reliance Natural procures fuel for the Anil Dhirubhai Ambani Group's power projects. Reliance Infrastructure Ltd. operates six power plants in India and plans to build another seven, according to data compiled by Bloomberg, while Reliance Power Ltd. is building at least three large stations.
Shares of Reliance Power rose 4 percent to 200.20 rupees while Reliance Infrastructure gained 1.4 percent to 1,196.90 rupees.
Reliance Industries had signed gas sale contracts with fertilizer makers and power producers before it began producing gas from the KG-D6 field in the Bay of Bengal on April 2.
Court Restraint
The court had in a verdict in June last year restrained the company from selling gas to companies other than Reliance Natural and state-owned NTPC Ltd., customers that had signed contracts for the fuel.
The ban was temporarily lifted in January, paving the way for supplies to fuel-starved fertilizer and power companies. India, the world's second-fastest growing major economy, imports 75 percent of its energy needs.
NTPC was little changed at 221.20 rupees. Deepna Mehta, a spokeswoman for the state-owned company, declined to comment.
"The verdict wouldn't necessarily mean the case will be resolved as the parties may even appeal in a higher court," Khandwala's Nair said.
The government set the price of natural gas from the Krishna Godavari field at $4.20 per million British thermal units when the price for crude oil is equal to or more than $60 a barrel, less than the $4.5 Reliance Industries had sought.
To contact the reporters on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net M.C. Govardhana Rangan in Mumbai at grangan@bloomberg.net
Reliance power
India to Start Process for Building 3 Power Projects
June 15 (Bloomberg) -- India will start the process for building three power projects with a capacity to generate 4,000 megawatts each by July as the South Asian nation rushes to raise its generation capacity, Power Secretary H.S. Brahma said.
The coal-fired projects will be located in the states of Andhra Pradesh, Tamil Nadu and Orissa, Brahma said in an interview in New Delhi today. The state governments will choose the locations for the coastal power plants, he said.
"We want to go very fast on building these projects," Brahma said. "We want to start work on six of these projects this year."
India plans to boost its electricity generation capacity to end blackouts in the world's second fastest-growing major economy where peak hour shortages may rise to 12.6 percent, according to a report on the Web site of the Central Electricity Authority. The nation plans to add 13,000 megawatts of capacity every year, President Pratibha Patil said in Parliament June 4.
The federal and state governments get the mandatory clearances and acquire land for the so called "ultra-mega power projects" before auctioning them to private sector companies to speed up construction. The government plans to build 14 of these projects near coal mines, or along the country's coast, to enable use of imported fuel.
Power Finance Corp., a state-run lender to utilities, handles the bidding process for the federal government.
"Once we decide on the projects, Power Finance will start work on acquiring land, water, environment and forest and other clearances," Brahma said.
Reliance Power Ltd. won the contract to build three of these projects at Sasan, Krishnapatnam and Tilaiya, and Tata Power Ltd. is building a plant at Mundra on the western coast.
To contact the reporter on this story: Gaurav Singh in New Delhi at +91-11-4179-2019 or gsingh31@bloomberg.net
June 15 (Bloomberg) -- India will start the process for building three power projects with a capacity to generate 4,000 megawatts each by July as the South Asian nation rushes to raise its generation capacity, Power Secretary H.S. Brahma said.
The coal-fired projects will be located in the states of Andhra Pradesh, Tamil Nadu and Orissa, Brahma said in an interview in New Delhi today. The state governments will choose the locations for the coastal power plants, he said.
"We want to go very fast on building these projects," Brahma said. "We want to start work on six of these projects this year."
India plans to boost its electricity generation capacity to end blackouts in the world's second fastest-growing major economy where peak hour shortages may rise to 12.6 percent, according to a report on the Web site of the Central Electricity Authority. The nation plans to add 13,000 megawatts of capacity every year, President Pratibha Patil said in Parliament June 4.
The federal and state governments get the mandatory clearances and acquire land for the so called "ultra-mega power projects" before auctioning them to private sector companies to speed up construction. The government plans to build 14 of these projects near coal mines, or along the country's coast, to enable use of imported fuel.
Power Finance Corp., a state-run lender to utilities, handles the bidding process for the federal government.
"Once we decide on the projects, Power Finance will start work on acquiring land, water, environment and forest and other clearances," Brahma said.
Reliance Power Ltd. won the contract to build three of these projects at Sasan, Krishnapatnam and Tilaiya, and Tata Power Ltd. is building a plant at Mundra on the western coast.
To contact the reporter on this story: Gaurav Singh in New Delhi at +91-11-4179-2019 or gsingh31@bloomberg.net
Book profit
Market is finding hard to breach 15600 and go high one must book
profit as sensex may go upto 13500 before rising again.
profit as sensex may go upto 13500 before rising again.
Good Morning
Hello Friends,
Sorry i am delayed for some personal reasons.
Today's Pick :
ICICI
AXIS BANK
TULIP TELE
JSW STEEL
TECH MAHINDRA
Sorry i am delayed for some personal reasons.
Today's Pick :
ICICI
AXIS BANK
TULIP TELE
JSW STEEL
TECH MAHINDRA
Friday, June 12, 2009
India Industrial Output Unexpectedly Rises as Rate, Tax Cuts Revive Demand
June 12 (Bloomberg) -- India's industrial production unexpectedly rose for the first time in three months, suggesting interest-rate cuts and government stimulus measures are helping resuscitate demand in Asia's third-biggest economy.
Output at factories, utilities and mines advanced 1.4 percent from a year earlier after a revised 0.75 percent drop in March, the statistics agency said in New Delhi today. Economists expected a contraction of 0.1 percent.
Six interest-rate cuts since mid-October and three fiscal stimulus packages are giving India a boost worth almost 7 percent of gross domestic product, the central bank estimates. Prime Minister Manmohan Singh's government will increase spending and plans to allow greater overseas investment to revive an economy growing at the slowest pace since 2003.
"I think we have now passed the bottom," said Robert Prior-Wandesforde, an economist at HSBC Holdings Plc in Singapore. "Although the output growth is unlikely to go vertical, improving external and domestic demand will" help production grow between 5 percent and 8 percent by the end of 2009, he said.
Lower interest rates, tax cuts on consumer products and higher spending by the government are already bolstering demand even as exports plunge. Coal production in April rose 13.2 percent, more than twice the pace in March, while the growth in cement output accelerated to 11.7 percent.
Manufacturing expanded at the fastest pace in eight months in May, helped by domestic demand, according to Markit Economic's Purchasing Managers' Index. India's exports fell 33.2 percent from a year earlier in April as the global recession cut demand for the nation's goods.
Budget Plan
Governments the world over are relying on higher spending to expand "opportunities for growth of output and employment," Prime Minister Singh told parliament in New Delhi on June 9. "That is what we should do" without worrying about the widening fiscal deficit, he said.
Finance Minister Pranab Mukherjee will unveil Singh's economic plans when he presents the budget in the first week of July. The Reserve Bank of India cut its repurchase rate by 4.25 percentage points to 4.75 percent from Oct. 20 to April 21. It also reduced the reverse repurchase rate to 3.25 percent to reduce the cost of lending and stimulate domestic demand.
India's benchmark stock index has risen 27 percent since the May 16 re-election of Singh's Congress-party-led alliance on optimism higher government spending will boost company profits. The $1.2 trillion economy stabilized in the three months to March, maintaining the 5.8 percent pace of expansion recorded in the preceding three months.
The central bank expects the economy to grow 6 percent in the fiscal year that started April 1, the slowest pace of expansion since 2003. Annual growth averaged 8.5 percent in the previous five years.
To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net .
Output at factories, utilities and mines advanced 1.4 percent from a year earlier after a revised 0.75 percent drop in March, the statistics agency said in New Delhi today. Economists expected a contraction of 0.1 percent.
Six interest-rate cuts since mid-October and three fiscal stimulus packages are giving India a boost worth almost 7 percent of gross domestic product, the central bank estimates. Prime Minister Manmohan Singh's government will increase spending and plans to allow greater overseas investment to revive an economy growing at the slowest pace since 2003.
"I think we have now passed the bottom," said Robert Prior-Wandesforde, an economist at HSBC Holdings Plc in Singapore. "Although the output growth is unlikely to go vertical, improving external and domestic demand will" help production grow between 5 percent and 8 percent by the end of 2009, he said.
Lower interest rates, tax cuts on consumer products and higher spending by the government are already bolstering demand even as exports plunge. Coal production in April rose 13.2 percent, more than twice the pace in March, while the growth in cement output accelerated to 11.7 percent.
Manufacturing expanded at the fastest pace in eight months in May, helped by domestic demand, according to Markit Economic's Purchasing Managers' Index. India's exports fell 33.2 percent from a year earlier in April as the global recession cut demand for the nation's goods.
Budget Plan
Governments the world over are relying on higher spending to expand "opportunities for growth of output and employment," Prime Minister Singh told parliament in New Delhi on June 9. "That is what we should do" without worrying about the widening fiscal deficit, he said.
Finance Minister Pranab Mukherjee will unveil Singh's economic plans when he presents the budget in the first week of July. The Reserve Bank of India cut its repurchase rate by 4.25 percentage points to 4.75 percent from Oct. 20 to April 21. It also reduced the reverse repurchase rate to 3.25 percent to reduce the cost of lending and stimulate domestic demand.
India's benchmark stock index has risen 27 percent since the May 16 re-election of Singh's Congress-party-led alliance on optimism higher government spending will boost company profits. The $1.2 trillion economy stabilized in the three months to March, maintaining the 5.8 percent pace of expansion recorded in the preceding three months.
The central bank expects the economy to grow 6 percent in the fiscal year that started April 1, the slowest pace of expansion since 2003. Annual growth averaged 8.5 percent in the previous five years.
To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net .
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