Sensex Index Advances

Indian Stocks Gain as GDP Growth Quickens, Dubai Concern Eases

Nov. 30 (Bloomberg) -- India's benchmark stock index rose, snapping a two-day 3.3 percent decline, as the nation's economy grew at the fastest pace in 1 1/2 years last quarter, beating economists' estimates.

Larsen & Toubro Ltd., India's biggest engineering company, gained 1.9 percent. ICICI Bank Ltd., India's second-largest lender, climbed 2.6 percent. Stocks also rebounded as concerns of losses from Dubai World's possible default eased.

"GDP numbers could continue to surprise positively," said Kenneth Andrade, head of investments at IDFC Asset Management Co., who manages assets worth $5.5 billion in Mumbai. "Investors over-reacted to the problems in Dubai which are quite localized."

The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 296.91, or 1.8 percent, to 16,928.92 as of 11:57 a.m. local time, the most since Nov. 11. All 30 stocks in the measure advanced. The S&P CNX Nifty Index on the National Stock Exchange rose 1.9 percent to 5,036.2. The BSE 200 Index added 1.9 percent to 2,107.58.

The United Arab Emirates pledged support for its banks, easing concerns that losses from Dubai World will spread. Central Bank of the U.A.E. said lenders will be able to borrow money for half a percentage point above the three-month local benchmark interest rate.

India's economy expanded by 7.9 percent last quarter from a year earlier, exceeding all estimates in a Bloomberg News survey of 22 economists, where the median forecast was for a 6.3 percent gain.

'Positive Surprise'

"It's definitely a positive surprise," said Navneet Munot, who oversees about $8.2 billion of assets as chief investment officer at SBI Asset Management Co. in Mumbai. "India's growth rate is more significant in comparison with the rest of the world and investors are able to see this differentiation."

ICICI added 2.6 percent to 873.05 rupees. Larsen gained 1.9 percent to 1,620 rupees. Larsen has formed a venture with Nuclear Power Corp. of India Ltd. to build a forging plant at Hazira, the companies said in a joint statement today. Reliance Industries Ltd., the nation's most valuable company, advanced 2 percent to 1,066.80 rupees.

Tata Motors Ltd., the Indian truckmaker that owns Jaguar Land Rover, gained 3.6 percent to 651.85 rupees after it turned to a profit in the second-quarter and Citigroup Inc. raised the stock's rating to "buy" from "hold," citing the earnings outlook.

Indiabulls Real Estate Ltd. rose 3.5 percent to 208.70 rupees after it was upgraded to "buy" from "sell" at Citigroup Inc., which said concerns on leasing delays and the company's "low execution visibility" are factored into the stock's valuation.

Wockhardt Ltd., an Indian drugmaker, rose 6.6 percent to 182.80 rupees. Wockhardt and DBS Bank Ltd. reached an out-of- court settlement over repayment of a 440 million rupee ($9.5 million) loan, Mint newspaper reported, citing a person familiar with the development. N. S. Rajan, a Wockhardt spokesman, declined to comment on the report when contacted by telephone today.

To contact the reporter on this story: Pooja Thakur at pthakur@bloomberg.net

India's Economic Growth

India's Economy Expands 7.9%; Fastest in Six Quarters

Nov. 30 (Bloomberg) -- India's economy expanded at the fastest pace in 1 1/2 years as manufacturing jumped, giving the central bank room to withdraw more stimulus measures.

Gross domestic product grew 7.9 percent in the three months to Sept. 30 from a year earlier after gaining 6.1 percent in the previous quarter, the statistics bureau said in New Delhi today. That was more than all estimates in a Bloomberg News survey of 22 economists, where the median forecast was 6.3 percent.

Shares and the rupee extended gains as the report signaled the economy may be strong enough to withstand the removal of pro-growth polices, as advocated by central bank Governor Duvvuri Subbarao last week. Manufacturing increased 9.2 percent last quarter, the most since June 2007, as companies including Mahindra & Mahindra Ltd. reported stronger sales.

"The recovery is gaining momentum," said Sonal Varma, a Mumbai-based economist at Nomura Securities Co., Japan's largest brokerage. "Today's data strengthens the case for the Reserve Bank of India to exit from its very easy policy settings."

To steer India's $1.2 trillion economy through the worst global financial crisis since the 1930s, Subbarao has kept the central bank's key reverse repurchase rate at a record-low 3.25 percent since April. Government spending and tax cuts took the value of stimulus measures to 12 percent of GDP.

Stocks Gain

That's helped the economy recover and the benchmark Sensitive index on the Bombay Stock Exchange to climb about 76 percent this year. The Sensitive index increased 2.2 percent to 17,001.37 at 1:30 p.m. in Mumbai, while the yield on the benchmark 10-year bond rose to 7.23 percent from 7.19 percent yesterday. The rupee gained to 46.42 per dollar from 46.65 during the period.

Trade, transport and communication services grew 8.5 percent, the fastest pace in a year, according to today's report. Agriculture gained 0.9 percent, the least since December 2008.

Inflation pressures are building as economic growth quickens and after the weakest monsoon rains since 1972 hurt farm output, pushing up food costs. The central bank forecasts inflation of 6.5 percent by March 31 from 1.34 percent in October and 0.5 percent in September. During 2008, the rate rose to almost 13 percent.

Tighter Policy

"Given the magnitude of easing and the speed at which inflation has bounced back, monetary policy will need to be tightened fairly soon," the Paris-based Organization for Economic Cooperation and Development said Nov. 19.

In a debate in parliament on Nov. 26, Finance Minister Pranab Mukherjee said policy makers are balancing the need to create jobs against inflation concerns. The central bank started to withdraw monetary stimulus on Oct. 27 by ordering lenders to keep more money in government bonds.

"We see inflation risks emerging and expect interest-rate hikes from January 2010," said Ramya Suryanarayanan, an economist at DBS Group Holdings Ltd. in Singapore.

Food inflation, which has climbed to 15.58 percent, is a politically sensitive issue in a nation where the World Bank estimates that three-quarters of the population live on less than $2 a day. Opposition lawmakers said last week that the government is obsessed with growth, allowing prices to spiral to the detriment of the poor.

New Factories

By sustaining the second-fastest growth of any major economy, trailing only China, India is drawing investment from companies including South Korea's Samsung Electronics Co. and French tiremaker Michelin & Cie, which said this month that it will add a factory in the southern state of Tamil Nadu.

The Chinese economy expanded 8.9 percent in the third quarter from a year earlier, the biggest gain in a year. Other Asian economies including Taiwan, South Korea and Singapore are performing better than expected as the region leads the world out of the global recession.

Prime Minister Manmohan Singh said this month that returning to the 9 percent growth pace that India averaged between 2004 and 2008 is "eminently feasible" in the medium term because a high national savings rate will aid investment.

Car sales climbed at a 33.9 percent annual pace in October and cellular operators, led by Tata Teleservices Ltd., added 16.6 million new subscribers. Lodha Developers Ltd., an Indian property company planning an initial share sale, said its home sales may climb about threefold this fiscal year as low interest rates encourage spending.

Mahindra, India's largest maker of sport-utility vehicles and tractors, last month reported net income in the three months ended Sept. 30 almost tripled to 7.03 billion rupees ($151 million) from 2.47 billion rupees a year earlier.

Rolls-Royce Motor Cars Ltd., which introduced the super- luxury "Ghost" model in India this month, said it has already received 25 orders for the model from New Delhi alone, equal to expected sales in Australia in a year.

"We are seeing strong expression of spending power in India," said Brenda Pak, general manager, South and East Asia Pacific at Rolls-Royce. "India will be a very strong market for us in the years to come."

To contact the reporters on this story: Cherian Thomas in New Delhi at Cthomas1@bloomberg.net Kartik Goyal in New Delhi at kgoyal@bloomberg.net

No updates

Hi friends,

Please excuse me, there will be no blog updates on Monday due to
unavoidable circumstances.

Regards,
Jagruti.

Sensex , nifty falls

Indian Stocks, Rupee, Bonds Decline on Dubai Default Concern

Nov. 27 (Bloomberg) -- India's stocks, currency and bonds fell on concern investors may shy away from riskier emerging market assets over losses stemming from Dubai's attempt to reschedule its debt.

The benchmark Bombay Stock Exchange's Sensitive Index, or Sensex, lost 501.77, or 3 percent, to 16,353.16 as of 1:55 p.m. local time, led by declines in Reliance Industries Ltd. and DLF Ltd. The rupee and bonds retreated, with the currency joining stocks in posting its biggest drop in more than three months.

"The Dubai debacle reinforced the view that any sort of recovery in the global economy is far away," said Devendra Das, fixed-income dealer at Development Credit Bank Ltd. in Mumbai.

Reliance, the nation's most valuable company, declined 3.6 percent. DLF, the largest developer, slid 3.4 percent to 342.2 rupees.

Dubai World, the government investment company, with $59 billion of liabilities, has sought a "standstill" agreement from creditors. The Dubai government's attempt to reschedule debt from creditors, triggering losses in stocks worldwide.

Dubai, which borrowed $80 billion in a four-year construction boom to transform its economy into a regional tourism and financial hub, suffered the world's steepest property slump in the global recession. Home prices fell 50 percent from their 2008 peak, according to Deutsche Bank AG.

Rupee, Bonds

Larsen & Toubro Ltd., the largest engineering company, fell 4 percent to 1,566 rupees. Larsen has as much as $25 million invested in Dubai, ET Now television channel reported earlier. Larsen's investments in Dubai are "not significant," Chairman and Managing Director A. M. Naik said in a telephone interview today.

The rupee weakened 1.3 percent to 47.035 against the U.S. dollar, the biggest drop since Aug. 17. The yield on the 6.9 percent note due July 2019 rose 2 basis points, or 0.02 percentage point, to 7.18 percent, according to the central bank's trading system. The price fell 0.12, or 12 paise per 100 rupee face amount, to 98.03.

"A sharp fall in equity markets in Asia has put pressure on the Indian rupee," said Harish Galipelli, vice president at Kochi-based JRG Wealth Management, which advises traders. "It's happening because of the crisis in Dubai."

To contact the reporters on this story: Pooja Thakur at pthakur@bloomberg.net

BTST SUZLON CMP73.35, KPIT INFO CMP 113

REL CAP, JSW STEEL

SHORT AT CURRENT OR HIGHER LEVELS.

TATA STEEL, LT, RELIANCE, ICICI

CREATE SHORT POSITION ON THE HIGH OF THE DAY TODAY. WORSE IS STILL TO COME.

Market recovering

But worse is not over yet, buying is due to squarring off of the intra day short positions. Do not create longs now.

HUL, INFOSYS, HINDALCO, TATA STEEL, SESA GOA

SHORT DEC FUTURES AT EVERY RISE TODAY.

BUY RICO AUTO CMP 28

BUY KPIT INFO, MAX INDIA,THINKSOFT

DO NOT BUY , SHORT AT HIGHER LEVELS TODAY EXCEPT STOCKS MENTIONED AS GOOD STOCKS IN EARLIER POST. BUY RANBAXY.

GOOD EVEN IN FALLING MARKETS

IFCI
RANBAXY
SUZLON
SPICEJET

MARKET FALLS....

OVER THE GLOBAL ISSUES , MARKET SLIPPED , IT WILL SLIP MORE ALSO. SUPPORT MAY COME AT 15900 LEVEL.
LONG TERM INVESTORS NEED NOT PANIC. BUYING OPPORTUNITY YET TO COME. DO NOT SHORT AT THIS LEVEL.
WAIT AND WATCH.....

Good Night

Image by Brooklyn Museum via Flickr

Hi Friends,

Today was a bad day for the market, it slipped by over 300 points as expected !! Tomorrow will be worse. Market finds it very hard to sustain convincingly above 17500 mark. With the market falling it suddenly came to my mind to tell you.....

Many a times, it is observed that when we are stuck with some stock which is consistingly falling, we think of averaging at lower levels by investing more in the same stock when market falls. The logic applied here is our average cost is reduced and stock will reach the lower cost soon when market rises and we will have solace that we did not make loss on that trade or lesser amount of loss per share,whereas actually we are incurring more loss if we count total loss in the transaction as the number of shares and the total amount invested increases. Many traders must have averaged BHARTI,IDEA,RELIANCE COMMUNICATIONS at different levels and it is still falling is the best example. But, in contrast to such belief, I have to advise those believers that in that case you may convince yourself of not making losses but in fact you are losing opportunity to make profit !! How ?? Look, in averaging the cost you are investing the spare fund again in the bad choice. Instead, if you bought another rising stock with that fund you would have generated more profit than the loss of earlier trade! Why is it so that we must generate money out of that one stock only ? That is why I always say that 'do not marry a stock', switch over to other good stock and count your total revenue of all trades at the end of the period and not revenue per trade .

If we have made wrong choice why should our ego not allow us to close the trade ? The winner in this market is one who also knows to book the loss, stop the loss !!

With this piece of my mind I wish you good night see you at the opening bell,

Regards,
Jagruti.

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• Bright lights at night 'making us more depressed' (telegraph.co.uk)

ONGC

ONGC to Meet Iran Oil Officials Seeking Opportunities

Nov. 26 (Bloomberg) -- Oil & Natural Gas Corp., India's biggest energy producer, plans to discuss "specific opportunities" with executives from National Iranian Oil Co. next week, said Chairman and Managing Director R.S. Sharma.

"In import-dependent countries like ours, we have to see where are the future sources of energy supplies," Sharma said in an interview in his office in New Delhi. "Iran, they have the second-largest crude oil and gas reserves and they are not very well exploited."

India is competing with countries including China and South Korea for natural resources overseas as output from domestic fields declines and requirements increase in the world's second- fastest growing major economy. Domestic demand for oil may grow at as much as 4 percent in 2010, Sharma said. ONGC's plans to develop projects in Iran have been delayed by the ongoing attempts to halt the Middle Eastern nation's nuclear program.

"It's always good to have your own oil assets when prices and supply are volatile," said Vaibhav Sanghavi, a director at Ambit Capital Ltd. in Mumbai who manages funds for wealthy individuals. "You just go wherever you have to."

ONGC, which completed the acquisition of U.K.-based Imperial Energy Plc this year, is targeting production of 60 million metric tons of oil and gas overseas by 2025, almost double India's output in the year ended March 31. Crude prices have declined 48 percent since reaching a record in July 2008.

The state-run explorer is also looking to bid in Iraq's second round of oil-area auctions and buying fields in countries such as Russia, Sharma, 58, said.

Easier Access

"We have to see where we have comparatively easier access," Sharma said. "Being a national oil company, we can leverage our position to get access to these opportunities."

ONGC shares were little changed at 1,179.90 rupees at 11:00 a.m. in Mumbai trading. The stock has gained 77 percent this year, tracking the benchmark Sensitive Index of the Bombay Stock Exchange. The meeting with the Iranian delegation is scheduled for Nov. 30, Sharma said.

ONGC is in talks with state-owned Petropars Ltd. to buy a stake in South Pars, Iran's largest natural gas field, R.S. Butola, managing director of ONGC Videsh Ltd., the overseas unit, said Oct. 6. The company discovered gas in Iran's Farsi block in partnership with refiner Indian Oil Corp. and Oil India Ltd.

The explorer may bid for blocks in Venezuela's Orinoco Belt, according to Butola. The South American country plans to open bids on Jan. 28 to pump 400,000 barrels a day from the Carabobo blocks.

Refinancing Debt

ONGC, which bought Imperial for 1.4 billion pounds ($2.3 billion), produces about 15,000 to 16,000 barrels a day from its fields in Siberia, less than potential, because prices are low, Sharma said.

The explorer is looking to refinance about $1 billion in debt raised to buy Imperial, Sharma said. ONGC may issue bonds or borrow in the domestic or overseas market before the debt matures in January.

ONGC is betting on higher crude oil prices to make its planned acquisitions viable. The explorer bid for Imperial in August 2008, after crude prices started declining from the all- time high of $147.27 a barrel on July 11 last year.

"We had done due diligence at $85, when crude was trading at $120," Sharma said. "We know prices are not going to remain soft and energy security is a major issue."

Oil prices may rise because of speculation by traders and world supply being unable to keep up with demand, Sharma said. "As of end October, 129 vessels, big and small, loaded with crude, are on the high seas. These market players have turned speculators and now hoarders," he said.

Both oil producers and refiners are happiest when prices of crude range from $60 to $80 a barrel, Sharma said.

To contact the reporter on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net .

buy jet airways cmp 465

TATA MOTORS

SHORT DEC FUTURES ON RISE TODAY CMP639 APPROX.

TATA STEEL

SHORT DEC FUTURE CMP APPROX.550

buy spice jet cmp 46.40 time 11:57am

buy WHIRLPOOL, ATLANTA

Good morning

Image by Loci Lenar via Flickr

Hi friends,

Good morning.

Welcome Sudhanshu and Mehraz. Have a happy trading through my blog.

Today , one year to Mumbai attack on 26/11 is over, lets pray for the soul of victims before startingthe business.

Market looks weak, today is last day of November Futures, market will remain very volatile. It may decline sharply today at the nd , intra day traders beware.

More later,
regards,

jagruti.

Global trends
26/11/09:Glbl Mkt@9AM,Dow(C):10464(+0.3%),Nasdaq(C):2176(+0.3%),Nikkei:
9354(-0.9%),HangSang:22567(-0.19%),SGXNifty:5081(-0.5%)

Essar Oil, IDBI Bank, Infosys, ITC and Oil & Natural: India Equity Preview

Nov. 26 (Bloomberg) -- The following companies may have unusual price changes in India trading. Stock symbols are in parentheses and share prices are from the last close, unless stated otherwise.

The Bombay Stock Exchange's Sensitive Index, or Sensex, gained 67.87, or 0.4 percent, to 17,198.95. The S&P CNX Nifty Index on the National Stock Exchange rose 0.4 percent to 5,108.15. The BSE 200 Index added 0.4 percent to 2,133.01.

Essar Oil Ltd. (ESOIL IN): The operator of India's second- largest non-state, crude-oil refinery will likely acquire three refiners from Royal Dutch Shell in a month, the Business Standard reported, citing sources it didn't identify. Essar Oil fell 1.1 percent to 135.05 rupees.

IDBI Bank Ltd. (IDBI IN): The Mumbai-based bank has identified two Indian lenders as potential targets for acquisition, the Press Trust of India reported, citing Chairman Yogesh Agarwal. IDBI Bank is holding talks with the two banks, the news agency said. IDBI fell 0.9 percent to 125.15.

Infosys Technologies Ltd. (INFO IN): The nation's biggest software maker by market value is considering acquiring companies in the consulting and health-care industries for as much as $500 million, the Business Standard reported yesterday citing V. Balakrishnan, the company's chief financial officer.

Separately, the Press Trust of India said the company plans to recruit about 20,000 workers this year as the global economy recovers. Infosys gained 0.2 percent to 2,438.55.

ITC Ltd. (ITC IN): India's biggest cigarette maker may rethink its approach on hostile takeovers if there is a new development in EIH Ltd., in which it hold 14.98 percent, Chairman Y.C. Deveshwar told reporters in New Delhi. ITC is generally averse to hostile approaches for takeovers, Deveshwar said. ITC gained 1.9 percent to 268.9.

Oil & Natural Gas Corp. (ONGC IN): India's biggest energy producer plans to discuss "specific opportunities" with executives from National Iranian Oil Co. next week, said Chairman and Managing Director R.S. Sharma. The stock rose 0.6 percent to 1,180 rupees.

Pantaloon Retail Ltd. (PF IN): Overseas funds must seek permission from the central bank before buying shares of the Indian retailer, the Reserve Bank of India said on its Web site. Overseas funds have reached a limit of 22 percent and need approval of the central bank before buying any more shares, it said. Pantaloon gained 3.1 percent to 341.85 rupees.

To contact the reporters on this story: Sumit Sharma in Mumbai at sumitsharma@bloomberg.net .

BUY ATLANTA CMP146

MARKET BOOK PROFIT, SENSEX FALLING....

BUY ZICOM CMP 102

BUY TATA POWER CMP 1345

BUY ACC CMP 799

BUY SINTEX IND CMP 257.30

BUY INDO BORAX CMP 80

buy kpit info cmp 110.75

buy zensar techno cmp 305

buy swan mills cmp 155

buy hoec cmp 292

Buy bajaj hind cmp 221 time 10.17am

Buy areva cmp 295, sail.

earlier post about good morning was posted at 10:11am but shows wrong timing.

Good morning

Image by swisscan via Flickr

Hi friends,

Good Morning. Welcome sonika to the blog.
Again I am late today. Market opened good and trading in green.

Today's pick:
GMDC
SESA GOA
KALYANI STEEL
DENA BANK
PRATIBHA IND

Have a great trading day,
jagruti.

BUY SWAN MILLS CMP 151 , ESCORTS 116, HINADLCO 136

BTST JET AIRWAYS, LITL

BTST PIDILITE CMP 206

NAG FERT CMP 32 , BUY

SINTEX IND BUY

CMP 243 TRGT 260

HARRISON MALAYAL

BUY CMP 122 TRGT 126, 138

BUY GMDC 131

SHORT BHEL CMP 2226

BEST BUY

PRATIBHA IND 372
SESA GOA 289
JSWSTEEL 1005

WATCH DENA BANK !! CMPABOVE 84 !!

SHORT WELSPUN GUJ CMP 272

MCLEOD RUSSEL

ANY TERM BEST BUY BE IT LONG , MEDIUM, SHORT, CMP 260

BUY GUJ IND POWER CMP 124, J KUMAR INFRA CMP 184

IVR PRIME, KALYANI STEEL ALSO GOOD BUY.

BUY VALECHA ENGG CMP 118

BUY GHCL CMP 43.30

MAX INDIA

BEST LONG TERM BUY : BUY ON DECLINES, CMP 223, TRGT 350 IN A FEW MONTHS.

MARKET MAY SELL OFF AT DAY END BUT ALL STOCKS RECOMMENDED HERE CAN BE BOUGHT ON DECLINE

BUY ZEEL CMP 266

BUY VIJAYA BANK, DENA BANK, UCO BANK

BUY RAMCO SYSTEMS CMP 118

BUY EVEREDY CMP 60

BUY RISHI LASER, GEOD LTD.

BUY MAX INDIA, UCO BANK, ELECON ENGG.

BUY GODREJ IND

BUY GODREJ IND

BUY DENA BANK, NIRAJ CEMENT

BUY PRAKASH IND CMP 152

Good Morning

Image by joiseyshowaa via Flickr

Hi friends,

Good Morning.

Warm welcome to Mr.Praveen to my blog. Have a happy using this blog.

Sorry, I am late today.

The market is good and you must have noticed all yesterday's picks were amazing !!

26th nov , Thursday is expiry of November FNO series. Hence, it is better not to judge the market trend now. December series is trading in Premium and so can be assumed that market will remain bullish in the next month. But as you are aware now, correction will also happen to give buying opportunity. Market has strong resistance at sensex 17490. If it crosses it convincingly it will touch higher levels.

TODAY'S PICK:
GINDWELL NORTON
WHIRLPOOL
OIL COUNTRY

Have a nice day,

Jagruti.

BTST ITC CMP 269

BTST GULF OIL, OIL COUNTRY, GMDC

BUY GMDC NOW OR ON DECLINE TODAY.CMP 127

BUY NIIT TECH CMP 158, GODREJ IND CMP 199

BUY NIIT TECH CMP 158, GODREJ IND CMP 199

buy NIRLON, ATUL LTD., INDO BORAX

BUY CORE PROJECTS CMP 172.95, TRGT 181, 192

ANANT RAJ IND

BUY CMP 144
TRGT 174

BTST TITAGARH WAGON CMP 325

DENA BANK

BUY CMP 80 TRGT 100

ACKRUTI

BUY CMP 536
TRGT 590, 627

JUBILIANT ORG CMP 302 BUY TRGT 321

JAIPRAKASH ASSOCIATES

BUY
CMP 230
TRGT 270, 300.

BUY IVR PRIME CMP 158

BUY THINKSOFT CMP281, PRATIBHA IND CMP 270

Good morning

Hi friends,

Global trends:

20/11/09:Glbl Mkt@9AM, Dow(C):10332(-0.9%), Nasdaq(C):2156(-1.6%),
Nikkei:9460(-0.9%), HangSang:22482(-0.7%), SGXNifty:4952(-0.6%)

Our market will give up sharply today. Opportunity to create shorts in
high beta stocks. Book profit on longs.

More on market opening,

Regards,
Jagruti.

SHORT SELL : SESA GOA, JSW STEEL SUZLON, JPASSOCIATE

MAX INDIA

CMP 203 A VERY GOOD LONG TERM BUY, ADD ON EVERY DECLINE.

BUY MAHINDRA FORGING, ITI

Good Morning

Image by ஐ★ღ§wêê†Båbίί®åєღ★ஐ via Flickr

Hi Friends,

Good Morning.

Global cues are not supportive today and we are also trading in overbought zone hence it is very likely that our market slips sharply during today and tomorrow. Traders trading intraday should be cautious.Pick for short term or long term. Buy on fall. Though sensex declines, it is seen that sideline shares perform good.

Today's picks:

OIL COUNTRY
AJMERA
RELIANCE POWER
ELECON ENGG
REDINGTON
CMC
SESAGOA
KALYANI STEEL
MAHARASTRA SEAMLESS
IDFC

Have a nice trading day,
Jagruti.

BTST RAJESH EXPORTS, ADHUNIK METAL

BTST KALINDEE RAIL, GITANJLI GEMS, IBULL REALTY

BTST REL CAP, AJMERA, BF UTILITY, ORIENT PAPER

buy

sintex
ajmera
iti
voltas

AMTEK AUTO BUY CMP 205

BEST BUY REL COM CMP 181

Global market

17/11/09:Glbl Mkt@9AM,Dow(C):10406(+1.3%),Nasdaq(C):2197(+1.3%),Nikkei:
9834(+0.4%),HangSang:22917(-0.1%),SGXNifty:5074(+0.3%)

Image by cobalt123 via Flickr

Hi friends,

Good morning.

Warm welcome to Yashigara and Nandkumarji.

Global cues are good today, our market will open good but let us watch how far it goes up, before giving some correction.

Today's picks:

HT MEDIA
AMAR RAJA BATTERIES
MCLEOD RUSSEL
IPCA LAB
FINANCE TECHNO
SUNDARAM FAST
SPICEJET
ZEE ENT
EXIDE

See you on opening bell,

Regards,
Jagruti.

BUY ORBIT CMP 311

BTST ANSAL INFRA, STERLITE, NIIT TECH

MARKET SLIPPING........

BUY REC LTD. CMP 240

BUY RUCHI SOYA CMP 86.50

BUY VARUN IND CMP 180, SPICEJET CMP 47, ONGC CMP 1200

buy

LIBERTY SHOES CMP 100
SWAN MILLS CMP 153
GRASIM CMP 2349

GOOD MORNING

Hi friends,

Market is trading at a strong resistance point and also on overbought zone. Traders should be careful buying at this level.More later,

Jagruti.

DIVESTMENT POLICY

MARKET SELLING OFF AFTER DIVESTMENT POLICY DISCUSSED BY THE CONCERNED MINISTER.

BUY

S KUMAR NATIONWIDE
MCLEOD RUSSEL

EXIDE IND

BUY CMP 115

MARKET IS SELLING OFF, AVOID BUYING NOW

BUY

THOMAS COOK
HANUNG TOYS
LYKA LAB

BUY

NEYVELLI LIGNITE CMP 159
SPICEJET CMP 44
FSL CMP 39.30

Global markets

13/11/09:Glbl Mkt@9AM,Dow(C):10197(-0.9%),Nasdaq(C):2149(-0.8%),Nikkei:
9793(-0.1%),HangSang:22409(+0.05%),SGXNifty:4954(-0.3%)

GOOD MORNING

Image by Astrid Photography. via Flickr

Hi Friends,

A very good morning. Its a bright and sunny morning here in Mumbai but the day will not be as bright on BSE. Global cues are weak. Our market will decline sharply today. In the next week it will trade in the range of 15600 -17000.
Today's pick :

UNITY INFRA CMP 579
KSK ENERGY CMP 203
TITAGARH WAGON CMP 314
LARSEN CMP 1640

Have a nice day,

Regards,

Jagruti.

BTST

BARTRONICS CMP 157

KSK ENERGY

CMP 205

BAJAJ HINDUSTAN

SHORT SELL CMP 219

HDIL

SHORT SELL CMP 365

WIRE N WIRELESS

BUY CMP 18.55

PRAJ INDUSTRY

CMP 93

PIDILITE IND

BUY CMP 176

J KUMAR INFRA

BUY CMP 185 BEST BUY FOR INTRA, SHORT AND MED TERM.

ANDHRA CEMENT

BUY CMP 25.40

ZYDUS

BUY CMP 195

BUY

MAX INDIA CMP 194
JUBILANT ORG CMP 297

KPIT INFO

BUY CMP 107
TRGT 116, 140 SHORT TO MEDIUM TERM. BUY AT DAY END ON DECLINE.

Good Morning

Market booking profit, it will go down today and tomorrow. wait for new buying and book profit.

DEEP IND

CMP 115
TRGT 135 SHORT TERM

EDUCOMP

SHORT SELL ON EVERY RISE CMP 754

BUY PTC INDIA, NEYVELLI CMP 153, TATA STEEL, SESA GOA

Good morning

Friends,

Morning started on a weak note. Market is selling off now and before taking any view on the market, the next two-three days working of the market needs to be seen. If the days remain weak, market may go down up to 14800 level slowly making lower tops and lower bottoms, in a few months time.

More as market progresses,

Have a nice day,
Jagruti.

Global trends

11/11/09:Glbl Mkt@9AM,Dow(C):10246(+0.1%),Nasdaq(C):2151(-0.%),Nikkei:
9890(+0.1%),HangSang:22486(+0.9%),SGXNifty:4895(+0.4%)

BUY GVK POWER CMP 50, ITI, EXIDE IND

buy CIPLA CMP300

buy HIND MOTORS, HIND ORG. CHEM.,SUZLON, MARG LTD.

Global trends

10/11/09:Glbl Mkt@9AM,Dow(C):10226(+2.03%),Nasdaq(C):2154
(+1.9%),Nikkei:9904(+0.9%),HangSang:22545(+1.5%),SGXNifty:4943(+0.8%)

market booking profit , wait for buying new , book some profit

GOOD MORNING

Image by ZedZap(Nick) via Flickr

Hi friends,

Good Morning,

Market looks to be good today, but will approach a strong resistance point soon. Hence, traders need to be very careful. Avoid intra day trading.

TODAY'S PICK:

IRB INFRA
LIC HSNG
TECH MAHINDRA
KPIT INFO
MPHASIS
GULF OIL CORP
GILLETTE
MAH & MAH

Have a nice day,

Jagruti.

BTST GIC HSNG CMP 93, SATYAM CMP 113

BTST GMR INFRA CMP 68

BUY S KUMAR CMP 42.50

BUY IRB CMP 261

buy CENTRAL BANK CMP 151

BUY WALCHANDNAGAR CMP 211

BUY JAI CORP, WHIRLPOOL

BUY SPICE JET CMP42.50, THINK SOFT CMP 221, CENTRAL BANK CMP 147

BUY IDFC CMP 160, BALRAMPUR CHINI, ORCHID CHEM

BUY HOTEL LEELA CMP 39

BUY : OIL COUNTRY CMP 113

Global cues

09/11/09:Glbl Mkt@9AM,Dow(C):10023(+0.1%),Nasdaq(C):2112(+0.3%),Nikkei:
9777(-0.1%),HangSang:21941(+0.5%),SGXNifty:4803

Good morning

Image via Wikipedia

Hi friends,

A very good morning to all of you and a special welcome to Hemant Modi.

Market has positive trends in short time but still little weakness is seen in medium term.

Today's pick:

TORRENT POWER
TORRENT PHARMA
ADANI ENT
EMPHASIS
NALCO
ASHOK LLND
GATEWAY DISTRIPARK
JAIN IRRIGATION
GLAXO

See you on the market opening,

Have a great trading day,

Jagruti.

Global trends

06/11/09:Glbl Mkt@9AM,Dow(C):10005(+2.08%),Nasdaq(C):2105
(+2.4%),Nikkei:9812(+1.0%),HangSang:21930(+2.0%),SGXNifty:4823(+0.96%)

Good morning

Hi friends,

Good morning.

Welcome Jawaharlalji and Varun. Wish you make profitable use of the
blog.

Golbal cues are positive. Our markets will open in green too. However,
it seems that the rally will fizzle out at the end. Be careful trading
intraday. Market will be very volatile.

Stocks of the day.:

IFCI
Reliance group of both brothers.

Please note that there will not be be blog updates during the market
hours for some personal reasons. Please excuse me.

Have a nice day,
Jagruti.

Dow Average

U.S. Markets Wrap: Dow Rises Most Since July, Gold Advances

Nov. 5 (Bloomberg) -- The Dow Jones Industrial Average rose the most since July after U.S. jobless claims and productivity beat economists' estimates. Gold rallied for a fourth day, while the dollar and Treasuries were little changed.

"We've actually seen more good news than bad across a broad spectrum of economic data," said Art Hogan, the chief market analyst at New York-based Jefferies & Co. "We look at the initial jobless claims as another piece of economic data we're pretty happy with."

The Dow increased 203.82 points, or 2.1 percent, to 10,005.96 at 4:01 p.m. in New York for the biggest advance since July 23. The Standard & Poor's 500 Index rose for a fourth day, adding 20.13 points, or 1.9 percent, to 1,066.63. More than nine stocks gained for each that fell on the New York Stock Exchange.

Cisco Systems Inc. advanced after earnings topped analysts' estimates. IMS Health Inc. surged 23 percent after agreeing to be acquired. All 30 stocks in the Dow gained, led by American Express Co.

All 10 industry groups in the S&P 500 advanced at least 0.6 percent as the Labor Department said initial unemployment claims fell to 512,000 last week and productivity surged at the fastest pace in six years. The department's measure of worker efficiency jumped at a 9.5 percent annual rate, topping the highest estimate of economists surveyed by Bloomberg.

Cisco Beats Estimates

Cisco, the biggest maker of networking equipment, added 2.8 percent to $23.93. The company's net income fell 19 percent to $1.79 billion, or 30 cents a share, in the first quarter, which ended Oct. 24. Excluding stock compensation and some other costs, profit was 36 cents, beating the 31-cent average estimate in a survey of analysts.

Cisco Chairman and Chief Executive Officer John Chambers, one of the first technology leaders to herald the recession two years ago, said he now sees a global economic recovery, fueling a rebound in his company's sales this quarter.

"Cisco is talking about a recovery around the world, Chambers is being very optimistic and people listen to him," said William Dwyer, chief investment officer at Baltimore-based MTB Investment Advisors, which oversees $13 billion. "People are a little cautious, they like what they're seeing, but there's an awful lot built into the market."

IMS Health Inc. surged 23 percent to $20.73 for the top gain in the S&P 500. The provider of prescription data to drugmakers and analysts agreed to sell itself to investment funds managed by TPG Capital and the CPP Investment Board for $22 a share, or about $5.2 billion. IMS shareholders will receive $22 a share in cash, the company said.

Bullion Rally

Gold futures for December delivery rose $2, or 0.2 percent, to $1,089.30 an ounce. Bullion climbed to a record $1,098.50 an ounce yesterday.

Crude oil for December delivery fell 78 cents, or 1 percent, to $79.62 a barrel on speculation that a government report tomorrow will show that the U.S. unemployment rate climbed last month, depressing demand for commodities.

"The employment figure tomorrow will be the granddaddy of them all," said Jim Ritterbusch, president of Ritterbusch & Associates, a Galena, Illinois, consultant. "There's just an unwillingness to get in until then."

U.S. employers cut 175,000 jobs last month, according to the median of estimates in a Bloomberg News survey before tomorrow's Labor Department report. The jobless rate probably climbed to 9.9 percent, the highest since 1983, according to the survey.

Risk Aversion

The dollar traded at $1.4877 per euro compared with $1.4861 yesterday. It touched $1.4917, the weakest level since Oct. 27. The euro gained 0.1 percent to 135.03 yen, from 134.85. The dollar was little changed at 90.76 yen, compared with 90.72.

Over the past few months, the dollar tended to depreciate against the euro on positive U.S. economic reports as demand declined for the safety of the world's main reserve currency. Investors are worried about a disappointing payroll report tomorrow, said Boris Schlossberg, director of currency research with online currency trader GFT Forex, in New York.

"There's a big fear the number could be negative, which would create a lot of risk aversion," Schlossberg said. "People are afraid to put on long euro positions ahead of the number. But if the number proves to be positive they'll be a lot more confident in putting on risk trades."

The difference between 2- and 10-year Treasury note yields steepened to 265 basis points, the widest amount since Sept. 17, as the U.S. prepared to sell a record $81 billion of notes and bonds next week.

The 10-year note yield rose one basis point, or 0.01 percentage point, to 3.53 percent, according to BGCantor Market Data. The 3.625 percent security maturing in August 2019 fell 2/32, or 63 cents per $1,000 face amount, to 100 3/4.

To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.net

Sensex Index Rises

India's Sensex Index Gains for Second Day; Bharti Advances

Nov. 5 (Bloomberg) -- India's stocks rose for a second day after the nation's tax collection increased, raising optimism the economy is recovering. Bharti Airtel Ltd. gained on reports that fees may be lowered.

Maruti Suzuki India Ltd., the maker of half the cars sold in India, advanced to the highest in almost two weeks after the government said personal income tax increased 2.9 percent. Bharti Airtel, the biggest mobile-phone service operator, jumped the most in more than two months after the Economic Times reported that the government may reduce annual license fees.

"The tax data shows that the recovery is under way," said Manish Sonthalia, a fund manager who helps oversee the equivalent of $162 million of equities at Motilal Oswal Securities Ltd. in Mumbai. "There is no doubt about it."

The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 151.77, or 1 percent, to 16,063.90. The gauge had earlier declined as much as 2.2 percent. The S&P CNX Nifty Index on the National Stock Exchange gained 1.2 percent to 4,765.55. The BSE 200 Index advanced 1.4 percent to 1,989.90.

Maruti gained 1.6 percent to 1,485.7 rupees, the highest since Oct. 26. India's direct tax collection in the April- October period rose 3.9 percent to 1.7 trillion rupees ($36 billion) from a year earlier, while taxes from companies climbed 4.6 percent to 1.09 trillion, the Central Board of Direct Taxes said in a statement in New Delhi. Personal income taxes increased to 632 billion rupees.

ICICI, Mahindra

ICICI Bank Ltd., the nation's second-biggest lender, rose 2 percent to 844.65 rupees, while Mahindra & Mahindra Ltd., the largest maker of sport-utility vehicles and tractors, added 3.6 percent to 960.85 rupees.

Bharti gained 4.5 percent to 319.3 rupees. Reliance Communications, the second-biggest mobile-phone service operator, added 5 percent to 178.2 rupees. India's Communications Minister Andimuthu Raja couldn't be immediately reached for a comment in his office on the report on lower fees.

Both Bharti and Reliance Communications were the worst performers on the Sensex this year.

"The telecom stocks are a great buying opportunity as they are trading at discount valuations," Sonthalia added.

DLF Ltd., the biggest developer, advanced 2 percent to 372.4 rupees after it said it sees no danger of a housing "bubble," a week after the central bank increased efforts to curb home prices.

Indian stocks may gain as much as 32 percent by the end of next year as a recovery in companies' industrial output and capacity utilization helps boost growth, BNP Paribas said.

Investment Themes

Investment themes for next year will revolve around the acceleration in infrastructure spending along with resilient urban and rural incomes, BNP strategist Manishi Raychaudhuri wrote in a report to clients today. The nation's central bank may choose to exit its accommodative policy by ordering banks to set aside more cash in government bonds instead of increasing borrowing costs in the first quarter of 2010, he said.

Indian stocks entered "attractive territory" after the retreat from this year's high, Nomura Holdings Inc. added.

The following stocks are among the most active in Indian trade. Stock codes are in brackets:

IRB Infrastructure Developers Ltd. (IRB IN), fell 0.6 percent to 243.15 rupees after it was cut to "reduce" from "neutral" at Nomura Holdings, which said the stock's valuations are "rich" given expectations for returns and the company's "constraints" in adding new projects.

Rashtriya Chemicals & Fertilisers Ltd. (RCF IN), India's second-biggest maker by market capitalization of products used to grow crops, climbed 12 percent to 65.8 rupees, the most since May 18. State-controlled Rashtriya Chemicals is negotiating with seven cement companies to provide clearing and forwarding services through its marketing and dealership chain in India, BusinessLine reported today, citing Managing Director U.S. Jha.

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net .

BTST REL CAP, REL INFRA, RNRL, RIL, KFA

BUY GVK POWER CMP 48.40

BUY IVRCL INFRA CMP 365

BUY ELECON ENGG CMP 82, ARTSON ENGG CMP 57

BUY EXCEL INFO CMP 80

BUY ESSAR OIL CMP132

BUY TATA STEEL CMP 471

BUY UNITECH CMP83

BUY HDIL CMP 324

CALLS TODAY

ALL CALLS WILL BE SHORT TERM, DO NOT PICK FOR INTRA DAY. MARKET WILL BE VERY VOLATILE AND IT WILL BE HARD TO FIND OUT INTRA DAY TRENDS.

BUY: IFCI CMP 45, REL COM CMP 176

BUY BHARTI, PTC INDIA

Globaj market

05/11/09:Glbl Mkt@9AM,Dow(C):9802(+0.31%),Nasdaq(C):2055(-0.1%),Nikkei:
9803(-0.4%),HangSang:21458(-0.7%),SGXNifty:4686(-0.6%)

Good Morning

Image via Wikipedia

Hi friends,

Good morning. Welcome Harsha to my blog. Hope this blog serves your purpose.

Amazed at yesterday's rise in the market ? It was expected. Today market may remain flat and volatile. Its real trend can be judged on Monday. Though it rose yesterday, it is trending downward still. Winter is setting on in Bombay, let us wait and watch to find out BSE remains hot or setting on coldness there too !!

Today's sector to watch:

Communication
Banking
Sugar

Let's meet on the market opening.

Have a nice day,

Jagruti.

BUY BHARAT FORGE, SHORT TERM TRADE CMP263, ICICI CMP 825

SHORT SELL BAJAJ HINUSTAN AND BOOK PROFIT ON INTRA DAY LONGS

STRONG RESISTANCE AT 15900-16000 LEVEL.

BUY : TATA MOTORS, TEA STOCKS LIKE MCLEOD RUSSEL

INTRA DAY BUY HDIL CMP 305

BUY THINKSOFT CMP232 STRICTLY INTRA DAY

Global markets

04/11/09:Glbl Mkt@9AM,Dow(C):9771(-0.17%),Nasdaq(C):2057(+0.4%),Nikkei:
9785(-0.18%),HangSang:21452(+0.99%),SGXNifty:4609(+1.64)

CLOSING BELL

Hi friends,

Market lost more than 500 points in one sesion today !! Amazing !! The market was expected to go down but not in such a high speed. At this juncture the investor should deploy some of their fund as it is hard to catch the bottom of the market.It may go down further by 500 points and take support or may not take support, it depends on market sentiment. Market is trading in the oversold zone and any time it can rise sharply too.

Traders should not short at this level and wait for market to rise for buying.

Good buys at this level:

RNRL

Very weak at this level:

ABAN OFFSHORE
SUZLON

More on the opening bell tomorrow,

Good night,

Jagruti.

SHORT SELL INDIABULL REALTY

SHORT SELL BALRAMPUR CHINI ON EVERY RISE

Global market

03/11/09:Glbl Mkt@9AM,Dow(C):9789(+0.7%),Nasdaq(C):2049(+0.1%),Nikkei:
9903(-1.3%),HangSang:21624(+0.02%),SGXNifty:4672(-0.5%)

MARKET SLIDING FAST N IS VERY VOLATILE

Asian Stocks Decline

Asian Stocks Decline on Commodity Prices, U.S. Consumer Report

Nov. 2 (Bloomberg) -- Asian stocks fell, extending the MSCI Asia Pacific Index's first monthly decline since February, as weaker commodity prices and a drop in U.S. consumer spending fueled concern corporate earnings growth will falter.

Mitsubishi Corp., a Japanese trading company that gets 39 percent of its sales from commodities, sank 3.1 percent. Sony Corp. slumped 5.8 percent even after narrowing a loss forecast as the yen climbed to a three-week high against the dollar earlier today. Daiwa Securities Group Inc., Japan's No. 2 brokerage, slid 4.5 percent on lower-than-estimated earnings.

The MSCI Asia Pacific Index slumped 1.1 percent to 115.13 as of 5:14 p.m. in Tokyo. The gauge has surged 63 percent from a more than five-year low on March 9 amid signs lower borrowing costs and spending packages are reviving the global economy. The index lost 1.3 percent in October.

"I can't expect government stimulus measures to continue to shore up company earnings," said Hiroshi Morikawa, a senior strategist at MU Investments Co., which manages the equivalent of $14 billion. "Doubt is rapidly growing that corporate profits will continue to improve next year."

Japan's Nikkei 225 Stock Average lost 2.3 percent, while Australia's S&P/ASX 200 Index dropped 2.2 percent. The Hang Seng Index in Hong Kong dipped 0.6 percent.

China's Shanghai Composite Index rose 2.7 percent after a report showed the nation's manufacturing industry expanded at the fastest pace in 18 months. Shanghai Lujiazui Finance & Trade Zone Development Co. climbed 8.9 percent after the South China Morning Post said the government had approved a Walt Disney Co. theme park for the city.

U.S. Futures, Treasuries

Consumer lenders Aiful Corp. and Takefuji Corp. soared at least 17 percent in Tokyo after the Nikkei newspaper said tighter regulations on lenders may be postponed.

Futures on the U.S. Standard & Poor's 500 Index added 0.4 percent and Treasuries fell as economists said an industry report today will show the country's manufacturing industry expanded last month. The yield on 10-year Treasuries rose three basis points to 3.41 percent, according to BGCantor Market Data.

The U.S. stock gauge fell 2.8 percent on Oct. 30, the most since July 2, as a Commerce Department report showed spending by American consumers dropped 0.5 percent in September, the first decline in five months. New-York based commercial lender CIT Group Inc. filed for bankruptcy on Nov. 1.

James Hardie Industries NV, the biggest seller of home siding in the U.S., retreated 2.2 percent to A$7.05 in Sydney. Toyota Motor Corp., which gets 31 percent of its revenue from North America, fell 2.5 percent to 3,570 yen and was the single biggest drag on the MSCI Asia Pacific Index.

Sony Forecast

Sony, which generates 24 percent of its sales in the U.S., slid 5.8 percent to 2,625 yen even after narrowing its annual net loss forecast by 21 percent.

The yen appreciated to as much as 89.20 per dollar today, the strongest since Oct. 14, compared with 91.02 against the dollar at the close of stock trading in Tokyo on Oct. 30. It was at 90.03 recently. Against the euro, the yen strengthened to as high as 131.01 from 135.01. The stronger yen reduces income when overseas revenue is converted into local currency.

"Sony's shares are adversely affected by the strong yen," said Ryosuke Katsura, an analyst at Mizuho Securities　Co. in Tokyo. "Macroeconomic factors have a larger influence over the stock than the company's fundamentals."

The MSCI Asia Pacific Index has fallen 5 percent from this year's high on Oct. 20 as earnings from PetroChina Co. to National Australia Bank Ltd. missed analyst forecasts and investor concern grew about the end of stimulus policies. Stocks on the MSCI gauge trade at an average 22 times estimated profit, the lowest level since May 18, according to Bloomberg data.

'End to Recovery'

The measure lost 1.3 percent last month, the first drop since February. Australia on Oct. 6 became the first Group of 20 nation to raise interest rates amid signs of strength in its economy, while the Bank of Japan said last week it will let its programs of buying corporate debt expire at the end of the year.

"The global economy can't stand on its feet yet without government support," said MU's Morikawa. "An end to stimulus is an end to a recovery."

Mitsubishi, Japan's biggest trading house, sank 3.1 percent to 1,915 yen, while closest rival Mitsui & Co. slid 3.1 percent to 1,185 yen. BHP Billiton Ltd., the world's biggest mining company, retreated 2 percent to A$36.71 in Sydney.

Crude oil futures in New York tumbled the most in a month, dropping 3.6 percent to $77 a barrel, on Oct. 30. The London Metals Index, a measure of six metals including copper and zinc, dropped 2.8 percent.

Daiwa fell 4.5 percent to 469 yen after posting second- quarter net income that was 72 percent lower than the average analyst estimate from a Bloomberg survey.

Disney Theme Park

HSBC Holdings Plc lost 1 percent to HK$86.35 in Hong Kong. Apple Daily said the bank's provision for bad debts in the U.S. may stay at a high level for the near future, citing Sandy Flockhart, who heads HSBC's Asia-Pacific unit.

In Shanghai, Lujiazui rose 8.9 percent to 30.47 yuan, while Shanghai Jielong Industry Corp. jumped by the 10 percent daily limit to 18.57 yuan.

The Disney park project has been approved by China's top economic planning body, the National Development and Reform Commission, the South China Morning Post reported today, citing an unidentified official with direct knowledge of the matter. An official at the Beijing-based NDRC who wouldn't give her name declined to comment today.

China's Manufacturing

A purchasing managers' index released by HSBC today rose to a seasonally adjusted 55.4 in October from the previous month. Yesterday, the Federation of Logistics and Purchasing said its Purchasing Managers' Index advanced to 55.2.

Aiful, Japan's No. 2 consumer-finance company by assets, jumped 17 percent to 156 yen, and Takefuji soared 23 percent to 427 yen. A gauge of consumer lenders posted the steepest advance among the Topix index's 33 industry groups.

The government may freeze the implementation of new regulations that limit lending to a customer to a third of the borrower's annual income and caps interest charges at 20 percent, the Nikkei newspaper reported, citing a government official it didn't name.

Lopro Corp., an Osaka-based corporate lender, was suspended from trading after the company filed for bankruptcy today amid swelling interest repayments.

To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net .

CIT Files for Bankruptcy

CIT Group Files Bankruptcy, Seeks to Cut $10 Billion in Debt 

Nov. 2 (Bloomberg) -- CIT Group Inc., the 101-year-old commercial lender that saw its funding dry up in the credit crunch, filed for bankruptcy in an effort to cut $10 billion in debt following a failed debt exchange and U.S. taxpayer bailout.

CIT listed $71 billion in assets and $64.9 billion in liabilities in a Chapter 11 petition yesterday in U.S. Bankruptcy Court in Manhattan. The Treasury Department said the government probably won't recover much, if any, of the $2.3 billion in taxpayer money that went to CIT.

The lender, which funds about 1 million businesses such as Dunkin' Brands Inc. and Eddie Bauer Holdings Inc., said it plans to exit court protection quickly due to support from bondholders, who voted for a "prepackaged" plan. None of CIT's operating subsidiaries, including Utah-based CIT Bank, were included in the filing, and operations will proceed as normal, CIT said in a statement.

"Short term, it's going to cause some difficulties for startups and smaller borrowers," said Jean Everett, a partner at Hiscock & Barclay LLP focusing on financial institutions and lending. "CIT lent across so many sectors it's sort of difficult to predict how it'll affect each sector."

The bankruptcy, the fifth-largest by assets, "will allow CIT to continue to provide funding to our small business and middle-market customers," Chief Executive Officer Jeffrey Peek said yesterday in a statement. CIT said it will attempt to emerge from court protection by the end of the year. Shareholders may be wiped out as common and preferred stock is likely to be canceled when the company ends its reorganization.

Carl Icahn

CIT has $1 billion from investor Carl Icahn to fund operations while it reorganizes. The credit line, to be drawn on until Dec. 31, will be a so-called debtor-in-possession loan. It also expanded its $3 billion credit facility by another $4.5 billion on Oct. 28.

The company had asked bondholders to exchange $30 billion in debt for new securities and equity. Icahn made a competing offer.

After New York-based CIT's offer expired at midnight on Oct. 29, the company said it was tallying 150,000 ballots. Debt holders rejected the exchange offer, with 90 percent of holders who voted opting for the company's prepackaged bankruptcy plan.

"We've been arguing for this type of result all along, whereby the bondholders can control the company's fate and where management can't just squander the company's resources," said Egan-Jones Ratings Co. President Sean Egan. "I think this outcome is absolutely fantastic."

Holding Companies

The failure of CIT's bank-holding company is the biggest measured by assets since regulators seized Washington Mutual Inc.'s banking unit in September 2008. Washington Mutual and IndyMac Bancorp Inc. are other banks with unmanageable debt that sought court protection to wind down their holding companies. Both put their retail banking units in the hands of the Federal Deposit Insurance Corp. CIT became a bank-holding company in December to qualify for a Treasury bailout.

"Disruptions in the credit markets coupled with the global economic deterioration that began in 2007, and downgrades in the company's credit ratings" hindered CIT's ability to obtain financing, according to an Oct. 2 filing with the U.S. Securities and Exchange Commission.

According to the petition, CIT's largest unsecured claim holders were Bank of America Corp., as collateral agent for a $7.5 billion claim, and Bank of New York Mellon Corp., as a trustee for retail bonds with a claim of $3.2 billion. Canadian senior unsecured notes have a claim for $2.1 billion, and Citigroup Inc. also has a $2.1 billion claim as an administrative agent to bank debt due 2010.

Plan Outline

CIT had said in its Oct. 2 outline of a prepackaged plan that it would give most noteholders new notes at 70 cents on the dollar plus new common stock, compared with the range of 70 cents to 90 cents and new preferred stock proposed in the exchange offer.

The lender, which reported $3 billion of losses in the past eight quarters, received $2.3 billion from the Treasury on Dec. 31, giving the U.S. preferred stock and warrants. The company wasn't given access to the FDIC's debt-guarantee program.

"We will be following developments very closely with an eye towards protecting taxpayers during the bankruptcy proceeding," Treasury spokesman Andrew Williams said yesterday in an e-mailed statement. "But as the company's disclosure on the prepackaged bankruptcy makes clear, with debt holders receiving less than face value of their instruments, recovery to preferred and common equity holders will be minimal."

CIT said the debt exchange would have given it a quicker reorganization without the cost of defaulting on loans, unwinding derivatives or fees for bankruptcy lawyers.

Largest Bondholder

Icahn, who said he's the largest bondholder with $2 billion of debt, had initially sought to block CIT's prepackaged plan, saying bondholders would get a better deal if the company went into a "free-fall bankruptcy." He offered to buy bonds for 60 cents on the dollar.

The company tried to stave off bankruptcy with a $3 billion rescue loan from bondholders in July to see it through a cash crunch. Bondholders stepped in after CIT failed to get another U.S. government bailout or enough loans to permit an out-of- court restructuring.

CIT's $3 billion facility, arranged by Barclays Plc, included investors led by Newport Beach, California-based Pacific Investment Management Co. and Centerbridge Partners LP in New York. Also providing financing were Oaktree Capital Management LLC and Capital Research & Management Co., both in Los Angeles, and Boston-based hedge fund Baupost Group LLC and Silver Point Capital LP in Greenwich, Connecticut.

Finances Trade

CIT has said it's the third-largest U.S. railcar-leasing firm and the world's third-biggest aircraft financier. It also finances trade in Canada, Europe and Asia by lending to small manufacturers that sell to retailers.

CIT accounts for about 70 percent of all short-term U.S. financing known as factoring, worth about $40 billion a year, according to Ray Ecke, president of Credit Management Resource in Oakland, New Jersey.

In factoring, suppliers and manufacturers sell payments owed for goods and services to companies such as CIT because they need immediate cash. The process gives vendors money to produce goods retailers have ordered. Retailers typically make payments within 90 days. After they do, a factor keeps a fee based on a percentage of the total order.

Subprime Mortgages

Peek, 62, who joined CIT in 2003 after failing to land the top job at Merrill Lynch & Co., moved the lender into subprime mortgages and student loans to pump up growth.

Assets at CIT jumped 77 percent from 2004 to the end of 2007 as it acquired companies that focused on vendor finance, education lending and medical, construction and industrial equipment loans. Net income surpassed $1 billion in 2006, a 39 percent increase over two years.

CIT's $500 million of notes due Nov. 3 fell to 68 cents on the dollar as of Oct. 29 from 80 cents at the beginning of the month, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

The lender's bankruptcy filing was made by Skadden, Arps, Slate, Meagher & Flom LLP, which the company said on July 11 it had hired as a legal adviser.

The case is In re CIT Group Inc., 09-16565, U.S. Bankruptcy Court for the Southern District of New York (Manhattan).

To contact the reporters on this story: Tiffany Kary in U.S. Bankruptcy Court for the Southern District of New York in Manhattan at tkary@bloomberg.net and; Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net .

AFTER A LONG WEEK END

Image via Wikipedia

Hi friends,

Hope your long week end was full of fun and happiness.

Global trend of the market is not good and our market also does not look good. Market is trending downwards and it is very critical to find where it will take support. However, followings are good buys for trading :

CROMPTON GREAVES
IPCA LAB
UNITED SPIRITS
SUNDARAM FASTENERS

Investors should wait or deploy just part of their funds. Market is still going to go down more. Adventurous traders can yet go short in followings:

EDUCOMP
HOEC
REL COM
REL INFRA

More on opening bell tomorrow,

Regards,
Jagruti.