31 Dec 2009 22:37
Market closed on the Top on the last session of this decade :
Sensex closed at 17464.81 ; Nifty closed at 5201.05
On 31st Dec,2008 Sensex was 9647.31 and Nifty was 2959.15. Sensex grew 81.03 % and similarly Nifty gained 75.76%.
Year 2009 was the strongest year for the markets since 1999. The Sensex closed the session at a new 19-month high and rallied over 81% in 2009. This was beyond expectations of analysts because the markets saw big correction in the second half of 2008 due to US housing and financial bubble.
If anyone goes back to the ending of 2008, I don’t think anyone in the market would have thought about 15,000,everybody is talking about 6000 mark,etc. Market gave a positive breakout on 13th March,2009. I consider that was the Golden day of this year.
Today, the markets witnessed volatility throughout the day due to F&O expiry. The Nifty managed to close above the psychological 5,200 mark for the first time since May 02, 2008 and shot up 75.90% in 2009.
Oil & gas, power, capital goods, and select auto, banking & technology stocks helped the indices to remain on the higher side. However, selling in the last couple of hours in pharma & realty stocks along with Reliance Communications, JSPL, ICICI Bank, PNB, HUL, Idea & Reliance Infrastructure limited the gains to some extent.
Indices Closing Value Chg (%)
BSE Metal 17399.22 233.7
BSE Auto 7435.83 204.2
BSE IT 5186.35 132.8
BSE-SMALLCAP 8357.62 126.9
BSE-MIDCAP 6717.82 107.7
BSE CAPITAL GOODS 14116.69 104.3
BSE BANKEX 10030.8 83.9
BSE SENSEX 17464.81 81.03
S&P CNX NIFTY 5201.05 75.9
BSE POWER 3188.55 74.3
BSE Oil & Gas 10470.97 73.1
BSE REALTY 3855.78 69.5
BSE HEALTHCARE 5018.33 69.2
BSE TECk 3277.04 68.3
BSE FMCG SECTOR 2791.55 40.5
In the F&O market, we saw marketwide rollovers, which were almost in line with what we have seen over the last 3-4 expiries. There were some concerns over the rollovers but the Nifty ended with a 65-70% rollovers, which is quite decent.
Here is a verbatim transcript of Anuj Singhal's comments on CNBC-TV18. Also watch the accompanying video.
In the F&O market, we saw marketwide rollovers, which were almost in line with what we have seen over the last 3-4 expiries. The stock futures were a bit higher than what we have seen. The Nifty futures were almost in line with what we saw last time. There were some concerns over the rollovers but we ended with a 65-70% for Nifty, which is quite decent.
On the option side, 5300 Call and 5200 Put were the two strikes were we saw maximum open interest build-up. So maybe these two become the goal post for January series going forward.
Stock Specific Action:
JP Associates, which was up 3%, saw decent build-up over there. Praj Industries, which was up 5%, saw huge build-up. Kingfisher Airlines, which was up 3%, there we saw decent build-up open interest.
Stock/ Symbol Closing on 31-12-2008 LTP on 31-12-2009 % Gain / Loss
ABB 453.8 769.55 69.58
ACC 480.15 875.1 82.26
AMBUJACEM 70.05 104.95 49.82
AXISBANK 504.7 988.2 95.80
BHARTIARTL 357.75 330.9 -7.51
BHEL 1362.6 2400 76.13
BPCL 376.1 635.5 68.97
CAIRN 172.05 282.5 64.20
CIPLA 186.8 336 79.87
DLF 282.15 362.05 28.32
GAIL 206.25 414.3 100.87
GRASIM 1219.85 2465.55 102.12
HCLTECH 115.3 371.05 221.81
HDFC 1486.4 2688 80.84
HDFCBANK 998.35 1705.2 70.80
HEROHONDA 803.65 1723.7 114.48
HINDALCO 51.4 161.2 213.62
HINDUNILEVR 250.3 264.85 5.81
ICICIBANK 448.1 880 96.38
IDEA 52.65 58 10.16
IDFC 66.8 154.85 131.81
INFOSYSTCH 1115.45 2604.7 133.51
ITC 171.7 251.35 46.39
JINDALSTEL 151 705.8 367.42
JPASSOCIATE 82.95 147.3 77.58
LT 773.75 1677.25 116.77
M&M 274.5 1085 295.26
MARUTI 520.2 1567.2 201.27
NTPC 180.6 236.55 30.98
ONGC 667.1 1182 77.18
PNB 526.7 907.7 72.34
POWERGRID 83.15 110.45 32.83
RANBAXY 252.35 517.1 104.91
RCOM 227.2 172.45 -24.10
RELCAPITAL 541.75 858.7 58.50
RELIANCE 616.25 1093.35 77.42
RELINFRA 579.5 1150 98.45
RPOWER 119.95 155.65 29.76
SAIL 77.5 240 209.68
SBIN 1288.8 2270.05 76.14
SIEMENS 286.95 581 102.47
STER 260.1 863.1 231.83
SUNPHARMA 1064.15 1522 43.02
SUZLON 62.3 90.45 45.18
TATAMOTORS 159.85 782 389.21
TATAPOWER 749.15 1381.1 84.36
TATASTEEL 217.2 617 184.07
TCS 477.9 748.8 56.69
UNITECH 40.65 82.5 102.95
WIPRO 233.4 681.15 191.84
Thursday, December 31, 2009
31 Dec 2009 9:45
31 Dec 2009 09:35
Asian Updates :
SGX Nifty : +36 (5205)
Hang Seng : +265.17 (21761.79)
Nikkei : -91.62 (10546.44)
STI : +6.32 (2886.08
SSE : +9.78 (3272.38)
Recommendations :
Buy Hindoilexp 282 321 (Positional)
Buy Oilcountub 125 140 (Positional)
Buy Dskulkarni 69 80 at 72
Buy MLL 55 64
Buy Videoind 223 237 Positional
Buy Finantech 1348 1400 Abv 1362
Buy Provogue 56.5
Buy Aptecht Watch abv 186
Buy Ktkbank Watch abv 131
Karurvysya Watch
Buy Jisljaleqs 839 865
Buy Axisbank 976 1025 Abv 987
Buy LITL 561 584 Abv 572
Buy Jindalswhl 1798 1888
Buy Maruti 1566 1594 Abv 1577
Punjlloyd Watch abv 210
Sell GTOffshore 511 482 Below 499
Sell Techm 995 940 Below 982, Positional
Stocks in News :
MTNL: from Sources
MTNL to offer VRS to increase efficiency
MTNL wants govt to foot Pension Bill; Pension bill went up to Rs 2,200 crore in last fiscal
Board meets today:
Himadri Chemical to consider fund raising
Lloyds Steel: issue of warrants to promoters
LML (FY09 September ending)
Net sales at Rs 156.1 crore versus Rs 106.6 crore
Net loss at Rs 51.6 crore versus loss of Rs 57.5 crore
Punjab & Haryana HC dismisses scheme of arrangement between Amtek Auto, Amtek India, Ahmednagar forging on valuation
DLF restructuring could see company turn into holding firm; 5 sub entities planned – FE
Taro AGM today, will see vote of shareholders on indemnification of directors and re-election of management
NTPC to foray into solar energy operations; plans to generate 301 MW via solar energy by March 2014
Kingfisher still in NSE F&O curb, Aban out
Panacia Biotec board approves buyback at a maximum price of Rs 189 (CMP: 211)
Ban on futures trading in sugar extended till September – PTI
3G auction likely by February 13; last date to apply January 25 – BL
ONGC draws a blank in Kerela Konkan basin; Drilling project cost pegged at more than Rs 400 crore BL
Export duty on iron ore to push back dispatches by 4.5% or 6 MT – BL
Tata Steel, SAIL hike prices on soaring input costs; JSW Steel, Essar, Bhushan to take hikes in January.
Emami offloads 19.6% in Zandu Realty @ Rs 6545/share; Emami stake down to 53.2%, values Zandu at over Rs 500 crore.
Shipping ministry identifies 17 new port projects on PPP basis.
JSL to hike production capacity to 2.5 MT from current 1.6 MT.
Hotel Leela successfully cancels $25 million of FCCB’s this month; Exposure reduced to $ 66.6 million.
JSPL (Jindal Steel & Power) may raise Rocklands Richfield offer to $ 176 million.
FIIs Net :
NSE F&O Dec series expiry today
FIIs net buy USD 82.3 million in equities on December 29
FIIs net buy Rs 113 crore in cash markets on December 30 (prov)
DIIs net buy Rs 69 crore in cash markets on December 30 (prov)
FIIs net sell Rs 278 crore in F&O on December 30
Rollover Scenario :
The Nifty January 5300 Call added 4 lakh shares in Open Interest and Nifty Jan 5000 Put added 4 lakh shares in Open Interest. Highest outstanding Open Interest was seen at December 5200 Call.
Marketwide rollover was at 67% versus 65% last series and Nifty rollover at 58% as against 64% last series. Low rollovers were seen in PSU banks and oil marketing companies.
Over 60% rollovers were seen in IFCI, Unitech and Suzlon. Stock futures shed 2.5 crore shares in Open Interest.
The Nifty January Open Interest PCR (put-call ratio) was at 1.25. The Nifty January 5300 Call added 4 lakh shares in Open Interest and Nifty Jan 5000 Put added 4 lakh shares in Open Interest. Highest outstanding Open Interest was seen at December 5200 Call.
Indian Hotels gained 4%. Its cost of carry (CoC) was up and its futures Open Interest rose 15%. Same trend was seen in Hotel Leela.
Fresh long positions were seen in Tata Chemical. The stock rose 3.5% and its futures Open Interest was up 22%.
Marketwide rollover at 67% versus 65% last series
Nifty rollover at 58% versus 64% last series
Over 80% rollovers in Cairn, Rel Power, Maruti
Over 70% rollovers in M&M, Bharti, Idea
Over 70% rollovers in cement stks
Low rollovers in PSU banks, OMCs
Long build-up in hotel stocks
Over 60% rollovers in IFCI, Unitech, Suzlon
Stock Futures shed 2.5 crore shares in Open Int
Nifty Jan Open Int PCR at 1.25
Nifty Jan 5300 Call adds 4 lakh shares in Open Int
Nifty Jan 5000 Put adds 4 lakh shares in Open Int
Nifty Dec 5200 Put sheds 21 lakh shares in Open Int
Highest outstanding Open Int in Dec 5200 Call
Nifty Dec 5200 Call adds 6 lakh shares in Open Int
FIIs in F&O on December 30
Net buy Rs 44 crore in Nifty Futures
Net sell Rs 224 crore in Nifty Options
US Markets :
the Dow and the Nasdaq eked out fresh highs for the year. The Standard & Poor's benchmark index is up 25% for 2009, putting it on track for its best year since 2003. Most of the advance is the result of the nine-month rally the market has seen as investors turned bullish on prospects for the economic recovery. The S&P 500 is up a whopping 66.5% since its March 9 closing low.
The US stocks spent almost the entire session trading with moderate losses until some late support helped the major indices improve their position. However, lift came on light volume and without leadership. Better-than-expected report on Midwest manufacturing helped sentiment.
The Dow Jones industrial average added 3.10 points, or 0.03%, at 10,548.51. The Standard & Poor's 500 Index was up 0.22 point, or 0.02%, to finish at 1,126.42. The Nasdaq Composite Index gained 2.88 points, or 0.13%, to close at 2,291.28.
Encouraging economic data provided support to the market. The Chicago purchasing-manager's index jumped to 60 in December from 56.1 in November, the highest since January 2006 and well above expectations. The employment gauge also rose, hitting its highest since November 2007.
The dollar continued to see volatile movement. The dollar index gained 0.5% but eventually pulled back to settle with a gain of just 0.1%. It is right now trading close to the 78 mark. Meanwhile, the greenback is at a 3-month high against the yen and on track for its best monthly gain against the euro.
Crude prices were fairly volatile following a slightly less-than-expected draw in inventory data. Prices eventually rose above USD 79.
Indian ADR :
Indian ADRs: Infosys, Wipro, Patni, Tata Comm, MTNL, ICICI Bank, Sterlite and Dr Reddys gained, while Satyam, HDFC Bank and Tata Motors was down.
Govt extends sugar futures suspension till Sep '10 :
The government has decided to extend a ban on the trade of sugar futures till September end, 2010, as domestic output has fallen substantially, the commodities market regulator said on Wednesday.
Mkts see record FII inflows in '09 so far
Buying by foreign institutional investors (FIIs) into Indian stocks reached a record high in 2009 as stocks markets in the countries saw a phenomenal rally.
So far, for 2009, FIIs have remained net buyers of equities to the tune of Rs 83,070 crore. Gross purchase stood at Rs 6,22,820.40 crore while gross sales were at Rs 5,39,750.30 crore. During the same period — between January and December — the Sensex rose 78%. There is every possibility that as data for trading for the last three days of the year turns in, 2009 will go down as the year for the highest-ever FII inflows.
Data suggest FII inflows also bettered the 2007 record — when the BSE Sensex was nearing the all-time 21,000 mark that it reached in January 2008.
Indian stock markets outperformed almost every other index in the world and rose by more than 100% between March, when equities bottomed out during the global financial crisis, and December.
Earlier, in 2007, FIIs remained net buyers to the tune of Rs 71,486.50 crore — the previous record — while the Sensex climbed 47% that year. (See table below)
Contrast this with 2008, FIIs discriminately pulled out money from Indian stocks, which was one reason why the Sensex plunged from record 21,000 levels to a low of 8,000.
The latest data prove Indian companies are the latest hub of growth in a world still battling the financial crisis and among investor hot spots. The Indian economy grew at 7.9% this quarter even as most economies in the developed world struggle to get out of negative growth.
Year Equity (Rs. Crore) Sensex % Chg
Purchase Sales Net
2009 622820.40 539750.30 83070.09 78%
2008 721606.00 774593.10 -52987.10 -52%
2007 814877.00 743390.70 71486.50 47%
Disclaimer at www.integrity.org.in
Asian Updates :
SGX Nifty : +36 (5205)
Hang Seng : +265.17 (21761.79)
Nikkei : -91.62 (10546.44)
STI : +6.32 (2886.08
SSE : +9.78 (3272.38)
Recommendations :
Buy Hindoilexp 282 321 (Positional)
Buy Oilcountub 125 140 (Positional)
Buy Dskulkarni 69 80 at 72
Buy MLL 55 64
Buy Videoind 223 237 Positional
Buy Finantech 1348 1400 Abv 1362
Buy Provogue 56.5
Buy Aptecht Watch abv 186
Buy Ktkbank Watch abv 131
Karurvysya Watch
Buy Jisljaleqs 839 865
Buy Axisbank 976 1025 Abv 987
Buy LITL 561 584 Abv 572
Buy Jindalswhl 1798 1888
Buy Maruti 1566 1594 Abv 1577
Punjlloyd Watch abv 210
Sell GTOffshore 511 482 Below 499
Sell Techm 995 940 Below 982, Positional
Stocks in News :
MTNL: from Sources
MTNL to offer VRS to increase efficiency
MTNL wants govt to foot Pension Bill; Pension bill went up to Rs 2,200 crore in last fiscal
Board meets today:
Himadri Chemical to consider fund raising
Lloyds Steel: issue of warrants to promoters
LML (FY09 September ending)
Net sales at Rs 156.1 crore versus Rs 106.6 crore
Net loss at Rs 51.6 crore versus loss of Rs 57.5 crore
Punjab & Haryana HC dismisses scheme of arrangement between Amtek Auto, Amtek India, Ahmednagar forging on valuation
DLF restructuring could see company turn into holding firm; 5 sub entities planned – FE
Taro AGM today, will see vote of shareholders on indemnification of directors and re-election of management
NTPC to foray into solar energy operations; plans to generate 301 MW via solar energy by March 2014
Kingfisher still in NSE F&O curb, Aban out
Panacia Biotec board approves buyback at a maximum price of Rs 189 (CMP: 211)
Ban on futures trading in sugar extended till September – PTI
3G auction likely by February 13; last date to apply January 25 – BL
ONGC draws a blank in Kerela Konkan basin; Drilling project cost pegged at more than Rs 400 crore BL
Export duty on iron ore to push back dispatches by 4.5% or 6 MT – BL
Tata Steel, SAIL hike prices on soaring input costs; JSW Steel, Essar, Bhushan to take hikes in January.
Emami offloads 19.6% in Zandu Realty @ Rs 6545/share; Emami stake down to 53.2%, values Zandu at over Rs 500 crore.
Shipping ministry identifies 17 new port projects on PPP basis.
JSL to hike production capacity to 2.5 MT from current 1.6 MT.
Hotel Leela successfully cancels $25 million of FCCB’s this month; Exposure reduced to $ 66.6 million.
JSPL (Jindal Steel & Power) may raise Rocklands Richfield offer to $ 176 million.
FIIs Net :
NSE F&O Dec series expiry today
FIIs net buy USD 82.3 million in equities on December 29
FIIs net buy Rs 113 crore in cash markets on December 30 (prov)
DIIs net buy Rs 69 crore in cash markets on December 30 (prov)
FIIs net sell Rs 278 crore in F&O on December 30
Rollover Scenario :
The Nifty January 5300 Call added 4 lakh shares in Open Interest and Nifty Jan 5000 Put added 4 lakh shares in Open Interest. Highest outstanding Open Interest was seen at December 5200 Call.
Marketwide rollover was at 67% versus 65% last series and Nifty rollover at 58% as against 64% last series. Low rollovers were seen in PSU banks and oil marketing companies.
Over 60% rollovers were seen in IFCI, Unitech and Suzlon. Stock futures shed 2.5 crore shares in Open Interest.
The Nifty January Open Interest PCR (put-call ratio) was at 1.25. The Nifty January 5300 Call added 4 lakh shares in Open Interest and Nifty Jan 5000 Put added 4 lakh shares in Open Interest. Highest outstanding Open Interest was seen at December 5200 Call.
Indian Hotels gained 4%. Its cost of carry (CoC) was up and its futures Open Interest rose 15%. Same trend was seen in Hotel Leela.
Fresh long positions were seen in Tata Chemical. The stock rose 3.5% and its futures Open Interest was up 22%.
Marketwide rollover at 67% versus 65% last series
Nifty rollover at 58% versus 64% last series
Over 80% rollovers in Cairn, Rel Power, Maruti
Over 70% rollovers in M&M, Bharti, Idea
Over 70% rollovers in cement stks
Low rollovers in PSU banks, OMCs
Long build-up in hotel stocks
Over 60% rollovers in IFCI, Unitech, Suzlon
Stock Futures shed 2.5 crore shares in Open Int
Nifty Jan Open Int PCR at 1.25
Nifty Jan 5300 Call adds 4 lakh shares in Open Int
Nifty Jan 5000 Put adds 4 lakh shares in Open Int
Nifty Dec 5200 Put sheds 21 lakh shares in Open Int
Highest outstanding Open Int in Dec 5200 Call
Nifty Dec 5200 Call adds 6 lakh shares in Open Int
FIIs in F&O on December 30
Net buy Rs 44 crore in Nifty Futures
Net sell Rs 224 crore in Nifty Options
US Markets :
the Dow and the Nasdaq eked out fresh highs for the year. The Standard & Poor's benchmark index is up 25% for 2009, putting it on track for its best year since 2003. Most of the advance is the result of the nine-month rally the market has seen as investors turned bullish on prospects for the economic recovery. The S&P 500 is up a whopping 66.5% since its March 9 closing low.
The US stocks spent almost the entire session trading with moderate losses until some late support helped the major indices improve their position. However, lift came on light volume and without leadership. Better-than-expected report on Midwest manufacturing helped sentiment.
The Dow Jones industrial average added 3.10 points, or 0.03%, at 10,548.51. The Standard & Poor's 500 Index was up 0.22 point, or 0.02%, to finish at 1,126.42. The Nasdaq Composite Index gained 2.88 points, or 0.13%, to close at 2,291.28.
Encouraging economic data provided support to the market. The Chicago purchasing-manager's index jumped to 60 in December from 56.1 in November, the highest since January 2006 and well above expectations. The employment gauge also rose, hitting its highest since November 2007.
The dollar continued to see volatile movement. The dollar index gained 0.5% but eventually pulled back to settle with a gain of just 0.1%. It is right now trading close to the 78 mark. Meanwhile, the greenback is at a 3-month high against the yen and on track for its best monthly gain against the euro.
Crude prices were fairly volatile following a slightly less-than-expected draw in inventory data. Prices eventually rose above USD 79.
Indian ADR :
Indian ADRs: Infosys, Wipro, Patni, Tata Comm, MTNL, ICICI Bank, Sterlite and Dr Reddys gained, while Satyam, HDFC Bank and Tata Motors was down.
Govt extends sugar futures suspension till Sep '10 :
The government has decided to extend a ban on the trade of sugar futures till September end, 2010, as domestic output has fallen substantially, the commodities market regulator said on Wednesday.
Mkts see record FII inflows in '09 so far
Buying by foreign institutional investors (FIIs) into Indian stocks reached a record high in 2009 as stocks markets in the countries saw a phenomenal rally.
So far, for 2009, FIIs have remained net buyers of equities to the tune of Rs 83,070 crore. Gross purchase stood at Rs 6,22,820.40 crore while gross sales were at Rs 5,39,750.30 crore. During the same period — between January and December — the Sensex rose 78%. There is every possibility that as data for trading for the last three days of the year turns in, 2009 will go down as the year for the highest-ever FII inflows.
Data suggest FII inflows also bettered the 2007 record — when the BSE Sensex was nearing the all-time 21,000 mark that it reached in January 2008.
Indian stock markets outperformed almost every other index in the world and rose by more than 100% between March, when equities bottomed out during the global financial crisis, and December.
Earlier, in 2007, FIIs remained net buyers to the tune of Rs 71,486.50 crore — the previous record — while the Sensex climbed 47% that year. (See table below)
Contrast this with 2008, FIIs discriminately pulled out money from Indian stocks, which was one reason why the Sensex plunged from record 21,000 levels to a low of 8,000.
The latest data prove Indian companies are the latest hub of growth in a world still battling the financial crisis and among investor hot spots. The Indian economy grew at 7.9% this quarter even as most economies in the developed world struggle to get out of negative growth.
Year Equity (Rs. Crore) Sensex % Chg
Purchase Sales Net
2009 622820.40 539750.30 83070.09 78%
2008 721606.00 774593.10 -52987.10 -52%
2007 814877.00 743390.70 71486.50 47%
Disclaimer at www.integrity.org.in
Tuesday, December 29, 2009
29 Dec 2009
29 Dec 2009 09:20
Asian Markets :
SGX Nifty : +6.50 (5183.50)
Hangseng : -55.87 (21424.35)
Nikkei : -19.91 (10614.32)
SSE : -14.27 (3174.51)
STI : +3.22 (2858.90)
Stocks to Watch & Buy :
Our market may open flat on the basis of flat Asian markets. Nifty’s level to watch is 5210-5220 similarly on the lower side, support level of 5150 should not be breached on closing basis. Nifty weekly pivot comes at the level of 5110, so it will also act as a crucial level to hold the bullishness of the market.
Stock Recommendations :
Buy Aban Abv 1254 close
Buy DLF Abv 376 close
Buy ICICIBank Abv 872 close
Buy ITC Abv 160 close
Buy Jindalshwl Abv 1840 close
Buy Lichsgfin Abv 806 close
Buy Mcdowell-n sl 1275, Trg 1345
Buy Bankindia around 370 sl 365 Trg384,
Buy Relcapital Abv 859 close
Buy Relinfra sl 1080,Trg 1138
Watch SBIN to Buy
Buy STER sl 848, Trg 884
Buy Tatapower sl 1340, Trg 1370
Buy Videoind sl 218, Trg 238 Abv 229 close
Sell Cipla Sell on rise
Stocks in News :
Reliance Ind :
RIL (Reliance Industries) updates non binding proposal for LB (LyondellBasells)
RIL updated proposal has higher cash component;
Offers cash of $ 5-6 billion versus previous cash offer was for approximately $ 2 billion
Reliance Power :
Reliance Power’s 1200 MW Rosa Project commences generation
Stage I: 600 MW power to be supplied to UP, project investment at Rs 6,000 crore
Stage II: 600 MW expansion underway
Iron Ore export duty
Government doubles export duty on Iron Ore Lumps
Export duty on Iron Ore Lumps hiked to 10% (from 5%)
5% export duty imposed on Iron Ore Fines versus nil
Steel Ministry wants 10% export duty on all grades
Max India : Goldman to pick up 9.4% stake in Max India for Rs 540 crore via subscribing to compulsory convertible debentures which will be converted into shares in 15 months
Advertisers may have to pay 10-15% premium to DTH from January, premium may go up later – BS
UTV, Sun TV in talks for a Tamil movie channel – BS
Maruti expects December sales to jump 30% - BS
3G winners may have to pay bid amount upfront, to get spectrum only in August – BL
Ranbaxy arm gets FDA warning, USFDA warning to Ohm Lab for manufacturing norm violation
Board meets today - Zee Entertainment & ETC Networks on detailed composite Scheme of amalgamation
Aban Offshore still in NSE F&O curb
US Markets :
Yesterday, It was a flat close on Wall Street after a choppy session. Modest gains in the early trade turned into modest losses during afternoon action, but some late support from the dollar and retail sales helped the stock market settle higher for the sixth straight session.The Dow Jones Industrial Average added 26.98 points, or 0.3%, to 10,547.08. The Standard & Poor's 500 Index rose 1.30 points, or 0.1%, to 1,127.78, and the Nasdaq Composite Index added 5.39 points, or 0.2%, to 2,291.08. The volatility index traded around the 20 mark.
The dollar's marginal weakness supported gains on Wall Street early on it continued trading close to the 78 mark after 0.1% decline yesterday.
Energy prices gained on the back of modest weakness in the dollar. Crude settled at the highest level since mid-November in New York trade yesterday. It is trading close to the USD 79 levels.
Last Week :
After being in doldrums for most of the month, the Indian market suddenly sprung back to life thanks largely to the short covering ahead of the F&O expiry. The key indices made a new high for 2009 on the eve of Christmas, rekindling the festive spirit. Two extended weekends and the derivative settlement could mean that the market will be volatile. The Nifty could surpass 5200 but further advance could hit speed breakers as valuations are not cheap and a few concerns are still in place. At the same time, a big slump is not on the cards. The Nifty is likely to find support at 5100 and 5000.
Global markets could see choppy, inconclusive trade as many are expected to have opted for a long year-end weekend. Also, a few markets could even be shut till the start of the new year. After having made a spectacular comeback, the bulls are unlikely to take any undue risks. The best thing to do next week would be to keep away from the markets and take a long hard look next year. Enjoy the holidays and begin afresh in 2010.
NSE FUTURES & OPTIONS(F&O) Report
(24/12/2009)
NIFTY FUTURES DETAILS
SYMBOL EXDATE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT C'O'INT
(%)
NIFTY 31-Dec-2009 5,159.95 5,209.95 5,136.4 5,185.4 439,519 18,898,050 -1,704,300 -8.27
NIFTY 28-Jan-2010 5,167.0 5,214.0 5,144.0 5,194.6 106,489 10,223,150 2,621,050 34.48
NIFTY 25-Feb-2010 5,178.6 5,220.0 5,148.9 5,197.35 1,969 256,700 25,200 10.89
________________________________________
TOP TRADED FUTURES
SYMBOL EXDATE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT C'O'INT
(%)
NIFTY 31-Dec-2009 5,159.95 5,209.95 5,136.4 5,185.4 439,519 18,898,050 -1,704,300 -8.27
NIFTY 28-Jan-2010 5,167.0 5,214.0 5,144.0 5,194.6 106,489 10,223,150 2,621,050 34.48
MINIFTY 31-Dec-2009 5,166.0 5,209.5 5,136.6 5,185.3 44,006 873,100 -49,200 -5.33
BANKNIFTY 31-Dec-2009 8,935.0 9,014.0 8,892.5 8,970.5 23,077 1,011,100 -123,550 -10.89
TATASTEEL 31-Dec-2009 607.9 619.0 598.2 616.25 22,569 9,763,156 -636,412 -6.12
________________________________________
TOP TRADED OPTIONS
SYMBOL INST. OPT EXDATE STRIKE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT
NIFTY OPTIDX CE 31-Dec-2009 5,200.0 31.9 49.5 22.05 39.05 329,919 6,234,050 -146,000
NIFTY OPTIDX PE 31-Dec-2009 5,100.0 26.0 33.0 11.05 16.95 221,353 5,080,550 288,850
NIFTY OPTIDX CE 31-Dec-2009 5,100.0 85.0 116.0 66.8 103.9 201,692 3,413,750 -666,950
NIFTY OPTIDX PE 31-Dec-2009 5,200.0 64.0 83.45 36.4 47.65 163,732 4,326,050 1,528,900
NIFTY OPTIDX PE 31-Dec-2009 5,000.0 10.0 14.0 5.15 6.5 153,936 6,350,850 891,700
________________________________________
TOP OPEN INTEREST
SYMBOL INST. OPT EXDATE STRIKE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT
IFCI FUTSTK XX 31-Dec-2009 0.0 53.0 55.9 52.7 55.1 9,853 58,973,920 -7,525,400
UNITECH FUTSTK XX 31-Dec-2009 0.0 82.95 83.7 81.45 82.25 10,303 55,494,000 -5,148,000
ISPATIND FUTSTK XX 31-Dec-2009 0.0 20.7 20.85 20.45 20.75 2,637 54,593,250 -7,208,550
SUZLON FUTSTK XX 31-Dec-2009 0.0 89.0 89.8 87.05 88.5 15,323 43,980,000 -2,010,000
ISPATIND FUTSTK XX 28-Jan-2010 0.0 20.9 20.9 20.55 20.8 2,036 31,971,600 9,897,750
________________________________________
TOP INCREASE IN OPEN INTEREST
SYMBOL INST. OPT EXDATE STRIKE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT
IFCI FUTSTK XX 28-Jan-2010 0.0 53.0 56.0 53.0 55.3 3,886 30,763,520 17,406,920
ISPATIND FUTSTK XX 28-Jan-2010 0.0 20.9 20.9 20.55 20.8 2,036 31,971,600 9,897,750
UNITECH FUTSTK XX 28-Jan-2010 0.0 82.75 83.9 81.65 82.55 3,430 24,583,500 7,213,500
SUZLON FUTSTK XX 28-Jan-2010 0.0 89.2 90.0 87.35 88.75 4,876 23,775,000 5,799,000
FSL FUTSTK XX 28-Jan-2010 0.0 34.75 35.45 34.3 34.55 766 12,711,000 4,132,500
________________________________________
TOP DECREASE IN OPEN INTEREST
SYMBOL INST. OPT EXDATE STRIKE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT
IFCI FUTSTK XX 31-Dec-2009 0.0 53.0 55.9 52.7 55.1 9,853 58,973,920 -7,525,400
ISPATIND FUTSTK XX 31-Dec-2009 0.0 20.7 20.85 20.45 20.75 2,637 54,593,250 -7,208,550
UNITECH FUTSTK XX 31-Dec-2009 0.0 82.95 83.7 81.45 82.25 10,303 55,494,000 -5,148,000
GTLINFRA FUTSTK XX 31-Dec-2009 0.0 37.2 37.65 36.2 36.5 1,908 26,097,850 -4,753,000
RNRL FUTSTK XX 31-Dec-2009 0.0 70.5 71.5 70.1 70.35 3,803 22,807,728 -3,114,696
________________________________________
India Property Valuation :
Valu ati o n pr e miu m of DLF/Unit e c h lo o k s u nju stifi e d. DLF, Unitech and BSE Sensex
universe are quoting at FY2011E P/B of 2.2X, 1.6X and 2.4X with FY2011E RoE’s of 10.6%,
9.3% and 16%, respectively. Thus these stocks are pricing in earnings upgrade while there has
been 5% downgrade for Unitech FY2011E EPS since June 2009. We retain our SELL rating on
DLF and Unitech with target price of Rs320 and Rs65, respectively. HDIL has seen
earnings upgrade, which we believe is largely on account of better TDR pricing.
Valuation premium of Unitech not in sync with earnings movement
DLF and Unitech continue to be expensive as they are trading at FY2011 P/E’s of 22X and 19X,
respectively, compared to Sensex P/E of 16X. DLF, Unitech and BSE Sensex universe are quoting at
FY2011E P/B of 2.2X, 1.6X and 2.4X with FY2011E RoE’s of 10.6%, 9.3% and 16%, respectively.
Cash accretion has significantly lagged PAT for DLF/Unitech and this should result in these
companies quoting at lower valuations compared to BSE Sensex. Thus these stocks are pricing in
either sharp earnings upgrades or faster relative growth beyond FY2011E. Against expectation of
earnings upgrades, there has been FY2011E earnings downgrade of 4.8% for Unitech while DLF
has seen upgrade of 21% on expectation of revival in commercial real estate (Exhibit 1). In the
same period, earnings profile for BSE Sensex Universe has remained flattish.
We believe earnings movement is not in sync with premium valuations of DLF/Unitech. We retain
our SELL rating on DLF and Unitech with target price of Rs320 and Rs65, respectively. These stocks
have underperformed over the last six months and we believe this will continue on account of
potential earnings disappointment (Exhibit 4).
Earning upgrades in DLF and HDIL, downgrades in Unitech
We see a divergence in trajectory of consensus earnings with upgrades in DLF, HDIL and
downgrades in Unitech since June 2009. Exhibit 1 shows that FY2011E earnings for DLF and HDIL
have increased by 21% and 12%, respectively, and declined for Unitech by 5%. We believe that
key drivers for direction of earnings are trend of new launches, pricing movements and progress
on execution.
DLF. DLF’s consensus earnings for FY2010E and FY2011E have seen upgrades of 7% and 21%,
respectively. Earning upgrades in DLF is largely on account of pickup in launches in 2HFY10 and
good construction progress at project sites. Comfort on earnings has also increased on account of
steady rental income and the sale of Capital Greens (SBM, Delhi) project. DLF has also increased its
construction run rate by approximately 6.5 mn sq. ft in 2QFY10.
Unitech. We observe consensus earnings for FY2010E and FY2011E have declined by 15% and
5%, respectively, since June 2009. We believe consensus was anticipating more new launches or
better execution and there has been disappointment, especially on the execution front. Unitech
has launched 21 mn sq. ft of projects in FYTD10 and most projects have just started
preconstruction activities or have yet to break ground. We believe consensus upgrades are possible
only if there is significant progress on the execution front.
HDIL. HDIL’s consensus earnings for FY2010E and FY2011E have seen upgrades of 17% and
12%, respectively. We believe the earning upgrades for HDIL is largely on account of pickup in
TDR prices which impact near-term earnings. Our market sources indicate that recent TDR
transactions have taken place in the range of Rs2,300-2,500/sq. ft. HDIL has already sold 3.5 mn
sq. ft of TDRs in 1HFY09. HDIL has also launched 4.6 mn sq. ft of residential projects since January
2009 but these would contribute to earnings post-FY2011 as HDIL books revenue on project
completion basis.
Company Name Land Bank (Mn Sq.Ft.)
DLF 432
Unitech 400
Indiabulls Real Estate 225
HDIL 125
Phoenix Mills 34
Purvankara Projects 125
Sobha Developers 138
Mahindra Lifespaces 67
Disclaimer :
This document has been prepared by the Research Division of Integrity Financial Consultants Pvt. Ltd.,Pune, India and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of iNTEGRITY. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security.
The information contained in this report has been obtained from sources that are considered to be reliable. However, iNTEGRITY has not independently verified the accuracy or completeness of the same. Neither iNTEGRITY nor any of its affiliates, its directors or its employees accept any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor.
Either iNTEGRITY or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication.
Asian Markets :
SGX Nifty : +6.50 (5183.50)
Hangseng : -55.87 (21424.35)
Nikkei : -19.91 (10614.32)
SSE : -14.27 (3174.51)
STI : +3.22 (2858.90)
Stocks to Watch & Buy :
Our market may open flat on the basis of flat Asian markets. Nifty’s level to watch is 5210-5220 similarly on the lower side, support level of 5150 should not be breached on closing basis. Nifty weekly pivot comes at the level of 5110, so it will also act as a crucial level to hold the bullishness of the market.
Stock Recommendations :
Buy Aban Abv 1254 close
Buy DLF Abv 376 close
Buy ICICIBank Abv 872 close
Buy ITC Abv 160 close
Buy Jindalshwl Abv 1840 close
Buy Lichsgfin Abv 806 close
Buy Mcdowell-n sl 1275, Trg 1345
Buy Bankindia around 370 sl 365 Trg384,
Buy Relcapital Abv 859 close
Buy Relinfra sl 1080,Trg 1138
Watch SBIN to Buy
Buy STER sl 848, Trg 884
Buy Tatapower sl 1340, Trg 1370
Buy Videoind sl 218, Trg 238 Abv 229 close
Sell Cipla Sell on rise
Stocks in News :
Reliance Ind :
RIL (Reliance Industries) updates non binding proposal for LB (LyondellBasells)
RIL updated proposal has higher cash component;
Offers cash of $ 5-6 billion versus previous cash offer was for approximately $ 2 billion
Reliance Power :
Reliance Power’s 1200 MW Rosa Project commences generation
Stage I: 600 MW power to be supplied to UP, project investment at Rs 6,000 crore
Stage II: 600 MW expansion underway
Iron Ore export duty
Government doubles export duty on Iron Ore Lumps
Export duty on Iron Ore Lumps hiked to 10% (from 5%)
5% export duty imposed on Iron Ore Fines versus nil
Steel Ministry wants 10% export duty on all grades
Max India : Goldman to pick up 9.4% stake in Max India for Rs 540 crore via subscribing to compulsory convertible debentures which will be converted into shares in 15 months
Advertisers may have to pay 10-15% premium to DTH from January, premium may go up later – BS
UTV, Sun TV in talks for a Tamil movie channel – BS
Maruti expects December sales to jump 30% - BS
3G winners may have to pay bid amount upfront, to get spectrum only in August – BL
Ranbaxy arm gets FDA warning, USFDA warning to Ohm Lab for manufacturing norm violation
Board meets today - Zee Entertainment & ETC Networks on detailed composite Scheme of amalgamation
Aban Offshore still in NSE F&O curb
US Markets :
Yesterday, It was a flat close on Wall Street after a choppy session. Modest gains in the early trade turned into modest losses during afternoon action, but some late support from the dollar and retail sales helped the stock market settle higher for the sixth straight session.The Dow Jones Industrial Average added 26.98 points, or 0.3%, to 10,547.08. The Standard & Poor's 500 Index rose 1.30 points, or 0.1%, to 1,127.78, and the Nasdaq Composite Index added 5.39 points, or 0.2%, to 2,291.08. The volatility index traded around the 20 mark.
The dollar's marginal weakness supported gains on Wall Street early on it continued trading close to the 78 mark after 0.1% decline yesterday.
Energy prices gained on the back of modest weakness in the dollar. Crude settled at the highest level since mid-November in New York trade yesterday. It is trading close to the USD 79 levels.
Last Week :
After being in doldrums for most of the month, the Indian market suddenly sprung back to life thanks largely to the short covering ahead of the F&O expiry. The key indices made a new high for 2009 on the eve of Christmas, rekindling the festive spirit. Two extended weekends and the derivative settlement could mean that the market will be volatile. The Nifty could surpass 5200 but further advance could hit speed breakers as valuations are not cheap and a few concerns are still in place. At the same time, a big slump is not on the cards. The Nifty is likely to find support at 5100 and 5000.
Global markets could see choppy, inconclusive trade as many are expected to have opted for a long year-end weekend. Also, a few markets could even be shut till the start of the new year. After having made a spectacular comeback, the bulls are unlikely to take any undue risks. The best thing to do next week would be to keep away from the markets and take a long hard look next year. Enjoy the holidays and begin afresh in 2010.
NSE FUTURES & OPTIONS(F&O) Report
(24/12/2009)
NIFTY FUTURES DETAILS
SYMBOL EXDATE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT C'O'INT
(%)
NIFTY 31-Dec-2009 5,159.95 5,209.95 5,136.4 5,185.4 439,519 18,898,050 -1,704,300 -8.27
NIFTY 28-Jan-2010 5,167.0 5,214.0 5,144.0 5,194.6 106,489 10,223,150 2,621,050 34.48
NIFTY 25-Feb-2010 5,178.6 5,220.0 5,148.9 5,197.35 1,969 256,700 25,200 10.89
________________________________________
TOP TRADED FUTURES
SYMBOL EXDATE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT C'O'INT
(%)
NIFTY 31-Dec-2009 5,159.95 5,209.95 5,136.4 5,185.4 439,519 18,898,050 -1,704,300 -8.27
NIFTY 28-Jan-2010 5,167.0 5,214.0 5,144.0 5,194.6 106,489 10,223,150 2,621,050 34.48
MINIFTY 31-Dec-2009 5,166.0 5,209.5 5,136.6 5,185.3 44,006 873,100 -49,200 -5.33
BANKNIFTY 31-Dec-2009 8,935.0 9,014.0 8,892.5 8,970.5 23,077 1,011,100 -123,550 -10.89
TATASTEEL 31-Dec-2009 607.9 619.0 598.2 616.25 22,569 9,763,156 -636,412 -6.12
________________________________________
TOP TRADED OPTIONS
SYMBOL INST. OPT EXDATE STRIKE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT
NIFTY OPTIDX CE 31-Dec-2009 5,200.0 31.9 49.5 22.05 39.05 329,919 6,234,050 -146,000
NIFTY OPTIDX PE 31-Dec-2009 5,100.0 26.0 33.0 11.05 16.95 221,353 5,080,550 288,850
NIFTY OPTIDX CE 31-Dec-2009 5,100.0 85.0 116.0 66.8 103.9 201,692 3,413,750 -666,950
NIFTY OPTIDX PE 31-Dec-2009 5,200.0 64.0 83.45 36.4 47.65 163,732 4,326,050 1,528,900
NIFTY OPTIDX PE 31-Dec-2009 5,000.0 10.0 14.0 5.15 6.5 153,936 6,350,850 891,700
________________________________________
TOP OPEN INTEREST
SYMBOL INST. OPT EXDATE STRIKE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT
IFCI FUTSTK XX 31-Dec-2009 0.0 53.0 55.9 52.7 55.1 9,853 58,973,920 -7,525,400
UNITECH FUTSTK XX 31-Dec-2009 0.0 82.95 83.7 81.45 82.25 10,303 55,494,000 -5,148,000
ISPATIND FUTSTK XX 31-Dec-2009 0.0 20.7 20.85 20.45 20.75 2,637 54,593,250 -7,208,550
SUZLON FUTSTK XX 31-Dec-2009 0.0 89.0 89.8 87.05 88.5 15,323 43,980,000 -2,010,000
ISPATIND FUTSTK XX 28-Jan-2010 0.0 20.9 20.9 20.55 20.8 2,036 31,971,600 9,897,750
________________________________________
TOP INCREASE IN OPEN INTEREST
SYMBOL INST. OPT EXDATE STRIKE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT
IFCI FUTSTK XX 28-Jan-2010 0.0 53.0 56.0 53.0 55.3 3,886 30,763,520 17,406,920
ISPATIND FUTSTK XX 28-Jan-2010 0.0 20.9 20.9 20.55 20.8 2,036 31,971,600 9,897,750
UNITECH FUTSTK XX 28-Jan-2010 0.0 82.75 83.9 81.65 82.55 3,430 24,583,500 7,213,500
SUZLON FUTSTK XX 28-Jan-2010 0.0 89.2 90.0 87.35 88.75 4,876 23,775,000 5,799,000
FSL FUTSTK XX 28-Jan-2010 0.0 34.75 35.45 34.3 34.55 766 12,711,000 4,132,500
________________________________________
TOP DECREASE IN OPEN INTEREST
SYMBOL INST. OPT EXDATE STRIKE OPEN HIGH LOW CLOSE CONTS. OPENINT C'O'INT
IFCI FUTSTK XX 31-Dec-2009 0.0 53.0 55.9 52.7 55.1 9,853 58,973,920 -7,525,400
ISPATIND FUTSTK XX 31-Dec-2009 0.0 20.7 20.85 20.45 20.75 2,637 54,593,250 -7,208,550
UNITECH FUTSTK XX 31-Dec-2009 0.0 82.95 83.7 81.45 82.25 10,303 55,494,000 -5,148,000
GTLINFRA FUTSTK XX 31-Dec-2009 0.0 37.2 37.65 36.2 36.5 1,908 26,097,850 -4,753,000
RNRL FUTSTK XX 31-Dec-2009 0.0 70.5 71.5 70.1 70.35 3,803 22,807,728 -3,114,696
________________________________________
India Property Valuation :
Valu ati o n pr e miu m of DLF/Unit e c h lo o k s u nju stifi e d. DLF, Unitech and BSE Sensex
universe are quoting at FY2011E P/B of 2.2X, 1.6X and 2.4X with FY2011E RoE’s of 10.6%,
9.3% and 16%, respectively. Thus these stocks are pricing in earnings upgrade while there has
been 5% downgrade for Unitech FY2011E EPS since June 2009. We retain our SELL rating on
DLF and Unitech with target price of Rs320 and Rs65, respectively. HDIL has seen
earnings upgrade, which we believe is largely on account of better TDR pricing.
Valuation premium of Unitech not in sync with earnings movement
DLF and Unitech continue to be expensive as they are trading at FY2011 P/E’s of 22X and 19X,
respectively, compared to Sensex P/E of 16X. DLF, Unitech and BSE Sensex universe are quoting at
FY2011E P/B of 2.2X, 1.6X and 2.4X with FY2011E RoE’s of 10.6%, 9.3% and 16%, respectively.
Cash accretion has significantly lagged PAT for DLF/Unitech and this should result in these
companies quoting at lower valuations compared to BSE Sensex. Thus these stocks are pricing in
either sharp earnings upgrades or faster relative growth beyond FY2011E. Against expectation of
earnings upgrades, there has been FY2011E earnings downgrade of 4.8% for Unitech while DLF
has seen upgrade of 21% on expectation of revival in commercial real estate (Exhibit 1). In the
same period, earnings profile for BSE Sensex Universe has remained flattish.
We believe earnings movement is not in sync with premium valuations of DLF/Unitech. We retain
our SELL rating on DLF and Unitech with target price of Rs320 and Rs65, respectively. These stocks
have underperformed over the last six months and we believe this will continue on account of
potential earnings disappointment (Exhibit 4).
Earning upgrades in DLF and HDIL, downgrades in Unitech
We see a divergence in trajectory of consensus earnings with upgrades in DLF, HDIL and
downgrades in Unitech since June 2009. Exhibit 1 shows that FY2011E earnings for DLF and HDIL
have increased by 21% and 12%, respectively, and declined for Unitech by 5%. We believe that
key drivers for direction of earnings are trend of new launches, pricing movements and progress
on execution.
DLF. DLF’s consensus earnings for FY2010E and FY2011E have seen upgrades of 7% and 21%,
respectively. Earning upgrades in DLF is largely on account of pickup in launches in 2HFY10 and
good construction progress at project sites. Comfort on earnings has also increased on account of
steady rental income and the sale of Capital Greens (SBM, Delhi) project. DLF has also increased its
construction run rate by approximately 6.5 mn sq. ft in 2QFY10.
Unitech. We observe consensus earnings for FY2010E and FY2011E have declined by 15% and
5%, respectively, since June 2009. We believe consensus was anticipating more new launches or
better execution and there has been disappointment, especially on the execution front. Unitech
has launched 21 mn sq. ft of projects in FYTD10 and most projects have just started
preconstruction activities or have yet to break ground. We believe consensus upgrades are possible
only if there is significant progress on the execution front.
HDIL. HDIL’s consensus earnings for FY2010E and FY2011E have seen upgrades of 17% and
12%, respectively. We believe the earning upgrades for HDIL is largely on account of pickup in
TDR prices which impact near-term earnings. Our market sources indicate that recent TDR
transactions have taken place in the range of Rs2,300-2,500/sq. ft. HDIL has already sold 3.5 mn
sq. ft of TDRs in 1HFY09. HDIL has also launched 4.6 mn sq. ft of residential projects since January
2009 but these would contribute to earnings post-FY2011 as HDIL books revenue on project
completion basis.
Company Name Land Bank (Mn Sq.Ft.)
DLF 432
Unitech 400
Indiabulls Real Estate 225
HDIL 125
Phoenix Mills 34
Purvankara Projects 125
Sobha Developers 138
Mahindra Lifespaces 67
Disclaimer :
This document has been prepared by the Research Division of Integrity Financial Consultants Pvt. Ltd.,Pune, India and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of iNTEGRITY. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security.
The information contained in this report has been obtained from sources that are considered to be reliable. However, iNTEGRITY has not independently verified the accuracy or completeness of the same. Neither iNTEGRITY nor any of its affiliates, its directors or its employees accept any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor.
Either iNTEGRITY or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication.
Friday, December 25, 2009
Our Christmas 2009 Celebration
Merry Christmas !
The Christmas have an opportunity to make the love of Savior real to anyone infected or affected by HIV and AIDS. We can offer hope not found anywhere else – hope for acceptance and grace, hope for spiritual and physical healing, hope for a rich spiritual community where no one is alone, hope for making a meaningful contribution to others in spite of living with HIV, hope for the orphaned and vulnerable children left behind, and most of all, hope for the reality of heaven!
Under the name of Emanuel Fellowship, family of Integrity have cherished few moments of the children who are affected by HIV.
Ms.Nicole Bakker & Mr.Frank Bakker are the whole and sole(also soul) of the charitable institution, "The House of Hopes". We have been there today, enjoyed the children drama of "The Birth of Jesus" , had cakes n chocolates with them over there.Also donated in terms of foodgrain on the occasion of Christmas.Really this is a great satisfaction !
For more details, please open the following website :
http://www.123people.com/s/nicole+bakker
scroll down and on the left hand side you will find the heading, Weblinks. Then select the weblink,
India House of Hope-Pune,India
Uploading here some photographs :
Regards,
Director,
Integrity Financial Consultants Pvt. Ltd.
The Christmas have an opportunity to make the love of Savior real to anyone infected or affected by HIV and AIDS. We can offer hope not found anywhere else – hope for acceptance and grace, hope for spiritual and physical healing, hope for a rich spiritual community where no one is alone, hope for making a meaningful contribution to others in spite of living with HIV, hope for the orphaned and vulnerable children left behind, and most of all, hope for the reality of heaven!
Under the name of Emanuel Fellowship, family of Integrity have cherished few moments of the children who are affected by HIV.
Ms.Nicole Bakker & Mr.Frank Bakker are the whole and sole(also soul) of the charitable institution, "The House of Hopes". We have been there today, enjoyed the children drama of "The Birth of Jesus" , had cakes n chocolates with them over there.Also donated in terms of foodgrain on the occasion of Christmas.Really this is a great satisfaction !
For more details, please open the following website :
http://www.123people.com/s/nicole+bakker
scroll down and on the left hand side you will find the heading, Weblinks. Then select the weblink,
India House of Hope-Pune,India
Uploading here some photographs :
So we have another occasion of New Year celebration with these children.
Regards,
Director,
Integrity Financial Consultants Pvt. Ltd.
Thursday, December 24, 2009
24 Dec 2009
24 Dec 2009
Asian Markets :
SGX Nifty : +8 pts
Hang Seng : +237.01pts
Nikkei : +171.10 pts
Nifty resistance around 5180-5200.
Stocks to Buy :
Buy Adhunik 104 114
Buy Jindalswhl 1788 1840 / 1876
Buy Relcapital
Buy NHPC 32.5 36
Buy Chennpetro 216 227
Buy Selan 324 340 / 348 Positional
Buy LT 1649 1700
Buy Bajajhind 210 224
Buy HCC 140 148 Abv 142
Buy Onmobile 375 400 Positional
Buy Mcdowell-n
Buy Zylog 350 380 Positional
Tatapower
Sell Syndibank Sell on rise
Sell PFC Sell on rise
The Nifty Open Interest PCR (put-call ratio) increased to 1.40 versus 1.15. Nifty 5000 Call shed 41 lakh shares in OI while Nifty 5000 Put added 12 lakh shares in OI. Stock futures added 4 crore shares in Open Interest.
FIIs net bought Rs 977 crore in Nifty futures. FIIs’ Nifty OI (open interest) was down 11,000 contracts. FIIs net bought Rs 611 crore in Nifty options.
The Nifty futures ended with 12-point premium. The Nifty Open Interest PCR (put-call ratio) increased to 1.40 versus 1.15.
Nifty 5000 Call shed 41 lakh shares in OI while Nifty 5000 Put added 12 lakh shares in OI. Stock futures added 4 crore shares in Open Interest.
Huge long build-up was seen in NTPC. The stock rose 7%. Its CoC (cost of carry) was also up and futures Open Interest was up 28%.
Fresh long build-up was seen in Hindalco, Tata Steel, HCL Tech and HDIL; their CoC was also up. Hindalco shot up 7.7% and its futures Open Interest was up 16%.
Tata Steel rose 4.6% and its futures Open Interest was up 16%. HCL Tech went up 3.5% and its futures Open Interest was up 14%. HDIL surged 4% and its futures Open Interest was up 18%.
Stocks in News :
Diageo Radico :
Diageo Radico Distilleries JV (joint venture) FIPB (Foreign Investment Promotion Board) nod to induct 100% FDI
Proposes to induct 100% foreign investment from Diageo Highlands BV
Diageo Highlands BV & Radico Khaitan have 50:50 stake in JV
Transaction by way of preferential allotment of 1.75 crore FCPS (Fully Convertible Preferential Shares)
Bharati Shipyard:
Bharati unlikely to make open offer unless directed by SEBI
Bharati gets 44.16% & proportionate represenation on board
Question before SEBI - Does 44.16% & proportionate board seats constitute control?
Radico Khaitan Says
Enabling approval to induct funds into JV
Shareholding pattern not to be altered
Funding by way of preferential share allotment
Mcleod Russel
To acquire Rwenzori Tea, Uganda for $25 million
To make further payment of $5 million to vendors as inter corporate debt
Uganda Company buy likely to be completed January 15: NW18
India Infoline under MCA scanner:
RoC (Registrars of Companies) seeks MCA (Ministry of Corporate Affairs) nod to inspect India Infoline & India Infoline Investment Services
RoC seeks inspection of books of A/c under Sec209(A), companies Act
RoC has conducted technical scrutiny of both companies based on risk parameters
ITI: Sources
Cabinet to mull ITI reservation extension for PSU procurement today
Proposal to extend ITI quota of BSNL, MTNL purchases by 1 year
BSNL, MTNL reserve 30% of equipment procurement for ITI
Board meets:
Indage Vintners – results
Diamant Investment to consider bonus issue
SpiceJet says
Prices likely to firm up next year
Will continue to focus on cost cuts
Product can't suffer due to cost cuts
Other stocks that are in news today:
Aban Offshore still in NSE F&O curb, IFCI out
Bank of India offers 8% home loan offer
Sai Ind & Sai Capital to start trading on BSE today, no circuit filter
Indian ADRs: Sterlite up 5.6%
Fund Action witnessed in Zandu Pharma, Sunil Hitech
Fund Action witnessed in Zandu Pharma, Sunil Hitech, Unichem Labs, Vishal InfoTech and SNL Bearings.
Fund Action:
Zandu Pharma
Emami sells 38,400 shares at Rs 6,310.90 per share
Emami sells 72,700 shares at Rs 6391.50 per share
Sunil Hitech
Kotak Mah UK buys 1.05 lakh shares at Rs 193.25 per share
Unichem Labs
Bajaj Allianz Life Ins buys 2 lakh shares at Rs 306.11 per share
Vishal InfoTech
Amas India Invst sells 2.2 lakh shares at Rs 12.05 per share
SNL Bearings
Sharekhan buys 37,000 shares at Rs 18.50 per share
Wall Street ends flat
Disappointing new home sales lead to a decline on Wall Street. But a weaker dollar helped drive stocks back into the green. However, the rebound was resisted at intra-session highs.
The Dow Jones Industrial Average was up 1.51 points, or 0.01%, to 10,466.44. The Standard & Poor's 500 index rose 2.57 points, or 0.2%, to 1,120.59, while the Nasdaq Composite Index added 16.97 points, or 0.8%, to 2,269.64.
In key economic data, new home sales tumbled 11.3% in November, raising the specter that previous positive signs in the industry were the result of government stimulus and not sustainable.
The dollar meanwhile continued to trade weak after hitting new 3-month highs in the previous session. The dollar index slipped below the 78 mark.
While a retreat by the dollar helped commodities, oil got an added benefit from a larger-than-expected weekly inventory draw of 4.84 million barrels. Oil prices surged nearly 3% at over USD 76 per barrel.
Asian Markets :
SGX Nifty : +8 pts
Hang Seng : +237.01pts
Nikkei : +171.10 pts
Nifty resistance around 5180-5200.
Stocks to Buy :
Buy Adhunik 104 114
Buy Jindalswhl 1788 1840 / 1876
Buy Relcapital
Buy NHPC 32.5 36
Buy Chennpetro 216 227
Buy Selan 324 340 / 348 Positional
Buy LT 1649 1700
Buy Bajajhind 210 224
Buy HCC 140 148 Abv 142
Buy Onmobile 375 400 Positional
Buy Mcdowell-n
Buy Zylog 350 380 Positional
Tatapower
Sell Syndibank Sell on rise
Sell PFC Sell on rise
The Nifty Open Interest PCR (put-call ratio) increased to 1.40 versus 1.15. Nifty 5000 Call shed 41 lakh shares in OI while Nifty 5000 Put added 12 lakh shares in OI. Stock futures added 4 crore shares in Open Interest.
FIIs net bought Rs 977 crore in Nifty futures. FIIs’ Nifty OI (open interest) was down 11,000 contracts. FIIs net bought Rs 611 crore in Nifty options.
The Nifty futures ended with 12-point premium. The Nifty Open Interest PCR (put-call ratio) increased to 1.40 versus 1.15.
Nifty 5000 Call shed 41 lakh shares in OI while Nifty 5000 Put added 12 lakh shares in OI. Stock futures added 4 crore shares in Open Interest.
Huge long build-up was seen in NTPC. The stock rose 7%. Its CoC (cost of carry) was also up and futures Open Interest was up 28%.
Fresh long build-up was seen in Hindalco, Tata Steel, HCL Tech and HDIL; their CoC was also up. Hindalco shot up 7.7% and its futures Open Interest was up 16%.
Tata Steel rose 4.6% and its futures Open Interest was up 16%. HCL Tech went up 3.5% and its futures Open Interest was up 14%. HDIL surged 4% and its futures Open Interest was up 18%.
Stocks in News :
Diageo Radico :
Diageo Radico Distilleries JV (joint venture) FIPB (Foreign Investment Promotion Board) nod to induct 100% FDI
Proposes to induct 100% foreign investment from Diageo Highlands BV
Diageo Highlands BV & Radico Khaitan have 50:50 stake in JV
Transaction by way of preferential allotment of 1.75 crore FCPS (Fully Convertible Preferential Shares)
Bharati Shipyard:
Bharati unlikely to make open offer unless directed by SEBI
Bharati gets 44.16% & proportionate represenation on board
Question before SEBI - Does 44.16% & proportionate board seats constitute control?
Radico Khaitan Says
Enabling approval to induct funds into JV
Shareholding pattern not to be altered
Funding by way of preferential share allotment
Mcleod Russel
To acquire Rwenzori Tea, Uganda for $25 million
To make further payment of $5 million to vendors as inter corporate debt
Uganda Company buy likely to be completed January 15: NW18
India Infoline under MCA scanner:
RoC (Registrars of Companies) seeks MCA (Ministry of Corporate Affairs) nod to inspect India Infoline & India Infoline Investment Services
RoC seeks inspection of books of A/c under Sec209(A), companies Act
RoC has conducted technical scrutiny of both companies based on risk parameters
ITI: Sources
Cabinet to mull ITI reservation extension for PSU procurement today
Proposal to extend ITI quota of BSNL, MTNL purchases by 1 year
BSNL, MTNL reserve 30% of equipment procurement for ITI
Board meets:
Indage Vintners – results
Diamant Investment to consider bonus issue
SpiceJet says
Prices likely to firm up next year
Will continue to focus on cost cuts
Product can't suffer due to cost cuts
Other stocks that are in news today:
Aban Offshore still in NSE F&O curb, IFCI out
Bank of India offers 8% home loan offer
Sai Ind & Sai Capital to start trading on BSE today, no circuit filter
Indian ADRs: Sterlite up 5.6%
Fund Action witnessed in Zandu Pharma, Sunil Hitech
Fund Action witnessed in Zandu Pharma, Sunil Hitech, Unichem Labs, Vishal InfoTech and SNL Bearings.
Fund Action:
Zandu Pharma
Emami sells 38,400 shares at Rs 6,310.90 per share
Emami sells 72,700 shares at Rs 6391.50 per share
Sunil Hitech
Kotak Mah UK buys 1.05 lakh shares at Rs 193.25 per share
Unichem Labs
Bajaj Allianz Life Ins buys 2 lakh shares at Rs 306.11 per share
Vishal InfoTech
Amas India Invst sells 2.2 lakh shares at Rs 12.05 per share
SNL Bearings
Sharekhan buys 37,000 shares at Rs 18.50 per share
Wall Street ends flat
Disappointing new home sales lead to a decline on Wall Street. But a weaker dollar helped drive stocks back into the green. However, the rebound was resisted at intra-session highs.
The Dow Jones Industrial Average was up 1.51 points, or 0.01%, to 10,466.44. The Standard & Poor's 500 index rose 2.57 points, or 0.2%, to 1,120.59, while the Nasdaq Composite Index added 16.97 points, or 0.8%, to 2,269.64.
In key economic data, new home sales tumbled 11.3% in November, raising the specter that previous positive signs in the industry were the result of government stimulus and not sustainable.
The dollar meanwhile continued to trade weak after hitting new 3-month highs in the previous session. The dollar index slipped below the 78 mark.
While a retreat by the dollar helped commodities, oil got an added benefit from a larger-than-expected weekly inventory draw of 4.84 million barrels. Oil prices surged nearly 3% at over USD 76 per barrel.
Wednesday, December 23, 2009
Diwali crackers on the eve of Carol
23 December 2009 16:00
Diwali crackers on the eve of Carol :
What was the market today! All round buying seen in the Indian stock market. Market opened flat and perfectly seen bullish trend with higher tops and higher bottoms. In addition, Finance Minister's commented on GDP growth. The Sensex surged 540 points while the Nifty rallied over 150 points in trade today. Positive discussions about divestment programmes in today's Cabinet meeting also added to this upsurge. Good global cues helped the indices to start on a positive note and supported the markets throughout the session.
Buying was seen across all the sectors, which supported the markets to post biggest gains in the month of December. BankNifty was up by 2.38%, CNXIT up by nearly 2.8%, MidCap was up 1.5%, Metal was up by 4%, Autoindex was up by 2%, Oil&Gas index was up with 3.50%, PSU was up by 2.28%, Realty was up by 2.4% and the power index was up by 3.32%.
In Nifty, NTPC was the major gainer with 6.5%. followed by Ster(5.05%), Tatasteel(4.76%), ICICIBank(4.71%) and SAIL(4.64%).
Hope in coming session, Nifty will cross its strong resistance level of 5180-5200.
KEC International bags order worth Rs 401 cr :
IDFC fund to invest Rs 250 cr in Adhunik Power
Diwali crackers on the eve of Carol :
What was the market today! All round buying seen in the Indian stock market. Market opened flat and perfectly seen bullish trend with higher tops and higher bottoms. In addition, Finance Minister's commented on GDP growth. The Sensex surged 540 points while the Nifty rallied over 150 points in trade today. Positive discussions about divestment programmes in today's Cabinet meeting also added to this upsurge. Good global cues helped the indices to start on a positive note and supported the markets throughout the session.
Buying was seen across all the sectors, which supported the markets to post biggest gains in the month of December. BankNifty was up by 2.38%, CNXIT up by nearly 2.8%, MidCap was up 1.5%, Metal was up by 4%, Autoindex was up by 2%, Oil&Gas index was up with 3.50%, PSU was up by 2.28%, Realty was up by 2.4% and the power index was up by 3.32%.
In Nifty, NTPC was the major gainer with 6.5%. followed by Ster(5.05%), Tatasteel(4.76%), ICICIBank(4.71%) and SAIL(4.64%).
Hope in coming session, Nifty will cross its strong resistance level of 5180-5200.
KEC International bags order worth Rs 401 cr :
IDFC fund to invest Rs 250 cr in Adhunik Power
23 Dec 2009
23 Dec 2009
Asian Updates :
SGX Nifty: +2 points
Hangseng: -3.12 points
Nifty will open flat on mixed Asians. Nifty will resist around 4992-5000 levels. Furthermore resistance is at 5040-5050. Whether support is showing at 4950-40 for the day.
In positive bias, Buy STCIndia,3IInfotech,NTPC,Yesbank alongwith weekly calls.
The markets were a bit quiet yesterday. The volumes were on the lower side as has been the trend over last couple of days. But if you look at yesterday’s trade, it largely looks like the high beta was back in action – the real estate stocks, the banking stocks and some of the metal stocks were back in limelight. CNBC-TV18's Nimesh Shah reports.
There is a question mark on whether the risk is returning and maybe that’s something to watch out for – whether there will be weak flows coming from the larger institutions. At least the morning flows are not suggestive that there is big appetite coming in from the larger institutions on another sideway movement is more or less expected. But for the last many days we are seeing the breadth slightly on the positive side with the midcap and the smallcap outperforming. So that may continue couple.
A couple of divestment related stocks is what I understand is going to be back in focus, so what out for those particular stocks and some of the defensive pharmaceutical names.
Great Offshore open offer: CNBC-TV18 Exclusive from sources
Bharati receives 1.02 crore shares in open offer
Bharati receives 27.56% equity in open offer
CNBC-TV18 Alert: Bharati holds 23.17% stake in Great Offshore, will accept 20% from open offer
Bharati’s stake will go up to 43%
Sun Pharma says:
Glass Lewis advises Taro shareholders to hold board accountable for its failures
Earlier PROXY Governance Inc recommended against Taro Board
Alert: Glass, Lewis & Co & PROXY Governance are leading independent proxy advisory firm
Lupin update
Settles litigation with Hatch - Waxman regarding Memantine Tabs
Alert : Memantine Is Lupins Generic version of Forest Labs NamendaA
NamendaA had sales worth USD 949 million In FY09; contributing 26% of Forests revenues in FY09
Other stocks that are in news today:
Indian ADRs: ICICI Bank up 4%
Board meets : Zee Entertainment and ETC Networks on restructuring
Reliance's Lyondell buy seen unlikely in 2009: Reuters
Max India board meet on January 13 to consider fund raising
IFCI and Aban in NSE F&O curb
ONGC agrees to a special oil tax if the subsidy burden regime is rationalized – FE
GVK in talks with Siemens for BIAL stake – Mint
Hotel Leela Venture promoters raising stake in company to 55% via creeping acquisition – BL (ITC holds 5.1% stake in Hotel Leela)
HDFC Property funds holds back funds on adverse market conditions and unrealistic valuations sought by developers
F&O Updates :
Total Futures Open Int up by Rs 543 crore, Total Options Open Int up by Rs 527 crore
Nifty up 0.7%, Futures Open Int down by 1.5%
Nifty Dec futures trading at 5 pt premium versus 4 pt discount
Nifty Open Int PCR at 1.15 versus 1.12
Nifty Calls shed 4.8 lakh shares, Nifty Puts add 13.8 lakh shares
Nifty 4900 Dec Put adds 8.5 lakh shares
Nifty 5000 Dec Call adds 3.8 lakh shares
Nifty 5000 Dec Put adds 3.9 lakh shares in Open Int ( Had shed 9.2 lakh shares on Monday)
Nifty 5700 March Call adds 2 lakh shares
Stock futures add 2 crore shares in Open Int
FIIs net buy Rs 421 crore in Nifty Futures on December 22
Nifty Futures Open Int down by 3688 contracts on December 22
FIIs net buy Rs 234 crore in Nifty Options on December 22
Nifty Options Open Int up by 1715 contracts on December 22
FIIs net buy Rs 542 crore in Stock futures on December 22
Stock Futures Open Int down by 1283 contracts on December 22
FIIs net sell Rs 1 crore in Stock Options on December 22
FII contribution to total F&O turnover at 22.1% versus 16.8% on Friday
Wall St advances on optimism about housing sector :
The S&P 500 logged another 14-month high on Tuesday as stocks rallied on a surge in existing home sales, which indicated more stabilization in housing and boosted optimism about the economic recovery.
The Nasdaq hit a 15-month high, buoyed by technology bellwethers. International Business Machines Corp shot up 1% to $129.93 on the NYSE after the blue-chip company scored a 10-year outsourcing deal valued at $83 million. Among the Nasdaq's main advancers, Microsoft Corp was up 1% at $30.82.
The Dow Jones industrial average rose 50.79 points, or 0.49%, to end at 10,464.93. The Standard & Poor's 500 Index added 3.97 points, or 0.36%, to 1,118.02. The Nasdaq Composite Index gained 15.01 points, or 0.67%, to close at 2,252.67.
Housing stocks led the way up with the Dow Jones US home construction index up 3.9% following data that showed US existing home sales rose in November at the fastest pace since February 2007.
Shares of DR Horton Inc rose 3.8% to $11.15, while Toll Brothers Inc gained 4.5% to $19.21.
Indian ADR :
Indian ADRs ended mixed on Tuesday. In the banking space, ICICI Bank was up 4.03% at $ 36.11 and HDFC Bank was up 1.27% at $ 126.46. In the telecom space, Tata Communication was up 0.21% at $ 14.53 and MTNL was up 0.99% at $ 3.05.
In the IT space, Infosys was up 0.68% at $ 54.45, Satyam Computers was up 0.41% at $ 4.88 while Wipro was down 0.45% at $ 21.92 and Patni Computers was down 0.48% at $ 19.795.
In other sectors, Sterlite Industries was up 1.41% at $ 17.22 while Dr Reddy’s Labs was down 0.15% at $ 26.09 and Tata Motors was down 0.19% at $ 15.7.
Asian Updates :
SGX Nifty: +2 points
Hangseng: -3.12 points
Nifty will open flat on mixed Asians. Nifty will resist around 4992-5000 levels. Furthermore resistance is at 5040-5050. Whether support is showing at 4950-40 for the day.
In positive bias, Buy STCIndia,3IInfotech,NTPC,Yesbank alongwith weekly calls.
The markets were a bit quiet yesterday. The volumes were on the lower side as has been the trend over last couple of days. But if you look at yesterday’s trade, it largely looks like the high beta was back in action – the real estate stocks, the banking stocks and some of the metal stocks were back in limelight. CNBC-TV18's Nimesh Shah reports.
There is a question mark on whether the risk is returning and maybe that’s something to watch out for – whether there will be weak flows coming from the larger institutions. At least the morning flows are not suggestive that there is big appetite coming in from the larger institutions on another sideway movement is more or less expected. But for the last many days we are seeing the breadth slightly on the positive side with the midcap and the smallcap outperforming. So that may continue couple.
A couple of divestment related stocks is what I understand is going to be back in focus, so what out for those particular stocks and some of the defensive pharmaceutical names.
Great Offshore open offer: CNBC-TV18 Exclusive from sources
Bharati receives 1.02 crore shares in open offer
Bharati receives 27.56% equity in open offer
CNBC-TV18 Alert: Bharati holds 23.17% stake in Great Offshore, will accept 20% from open offer
Bharati’s stake will go up to 43%
Sun Pharma says:
Glass Lewis advises Taro shareholders to hold board accountable for its failures
Earlier PROXY Governance Inc recommended against Taro Board
Alert: Glass, Lewis & Co & PROXY Governance are leading independent proxy advisory firm
Lupin update
Settles litigation with Hatch - Waxman regarding Memantine Tabs
Alert : Memantine Is Lupins Generic version of Forest Labs NamendaA
NamendaA had sales worth USD 949 million In FY09; contributing 26% of Forests revenues in FY09
Other stocks that are in news today:
Indian ADRs: ICICI Bank up 4%
Board meets : Zee Entertainment and ETC Networks on restructuring
Reliance's Lyondell buy seen unlikely in 2009: Reuters
Max India board meet on January 13 to consider fund raising
IFCI and Aban in NSE F&O curb
ONGC agrees to a special oil tax if the subsidy burden regime is rationalized – FE
GVK in talks with Siemens for BIAL stake – Mint
Hotel Leela Venture promoters raising stake in company to 55% via creeping acquisition – BL (ITC holds 5.1% stake in Hotel Leela)
HDFC Property funds holds back funds on adverse market conditions and unrealistic valuations sought by developers
F&O Updates :
Total Futures Open Int up by Rs 543 crore, Total Options Open Int up by Rs 527 crore
Nifty up 0.7%, Futures Open Int down by 1.5%
Nifty Dec futures trading at 5 pt premium versus 4 pt discount
Nifty Open Int PCR at 1.15 versus 1.12
Nifty Calls shed 4.8 lakh shares, Nifty Puts add 13.8 lakh shares
Nifty 4900 Dec Put adds 8.5 lakh shares
Nifty 5000 Dec Call adds 3.8 lakh shares
Nifty 5000 Dec Put adds 3.9 lakh shares in Open Int ( Had shed 9.2 lakh shares on Monday)
Nifty 5700 March Call adds 2 lakh shares
Stock futures add 2 crore shares in Open Int
FIIs net buy Rs 421 crore in Nifty Futures on December 22
Nifty Futures Open Int down by 3688 contracts on December 22
FIIs net buy Rs 234 crore in Nifty Options on December 22
Nifty Options Open Int up by 1715 contracts on December 22
FIIs net buy Rs 542 crore in Stock futures on December 22
Stock Futures Open Int down by 1283 contracts on December 22
FIIs net sell Rs 1 crore in Stock Options on December 22
FII contribution to total F&O turnover at 22.1% versus 16.8% on Friday
Wall St advances on optimism about housing sector :
The S&P 500 logged another 14-month high on Tuesday as stocks rallied on a surge in existing home sales, which indicated more stabilization in housing and boosted optimism about the economic recovery.
The Nasdaq hit a 15-month high, buoyed by technology bellwethers. International Business Machines Corp shot up 1% to $129.93 on the NYSE after the blue-chip company scored a 10-year outsourcing deal valued at $83 million. Among the Nasdaq's main advancers, Microsoft Corp was up 1% at $30.82.
The Dow Jones industrial average rose 50.79 points, or 0.49%, to end at 10,464.93. The Standard & Poor's 500 Index added 3.97 points, or 0.36%, to 1,118.02. The Nasdaq Composite Index gained 15.01 points, or 0.67%, to close at 2,252.67.
Housing stocks led the way up with the Dow Jones US home construction index up 3.9% following data that showed US existing home sales rose in November at the fastest pace since February 2007.
Shares of DR Horton Inc rose 3.8% to $11.15, while Toll Brothers Inc gained 4.5% to $19.21.
Indian ADR :
Indian ADRs ended mixed on Tuesday. In the banking space, ICICI Bank was up 4.03% at $ 36.11 and HDFC Bank was up 1.27% at $ 126.46. In the telecom space, Tata Communication was up 0.21% at $ 14.53 and MTNL was up 0.99% at $ 3.05.
In the IT space, Infosys was up 0.68% at $ 54.45, Satyam Computers was up 0.41% at $ 4.88 while Wipro was down 0.45% at $ 21.92 and Patni Computers was down 0.48% at $ 19.795.
In other sectors, Sterlite Industries was up 1.41% at $ 17.22 while Dr Reddy’s Labs was down 0.15% at $ 26.09 and Tata Motors was down 0.19% at $ 15.7.
Tuesday, December 22, 2009
22 Dec 2009 Morning Call :
22 Dec 2009 09:27
22 Dec 2009 09:27
Asian Market Updates :
SGX Nifty : 4973 (+33 points)
Hang Seng : 21201 (+253.79 points)
Nikkei : 10329 (+146.31)
On strong global cues our market will open strong.Nifty support at 4940-50 and will resist at 4992/5050 levels.
Banking will give smart recovery especially ICICIBank,HDFCBank & HDFC
Buy BankNifty abv 8610 with a sl of 8570 for Trgt 8750 (positional)
Titan 1350 Trg 1400-1412
Jindal Saw
DishTv
NSE may consider 9-5 trading in index futures.
F&O Updates :
Total Futures Open Interest up by Rs 165 crore, Total Options Open Interest up by Rs 1674 crore
Niftty down 0.7%, Futures Open Interest up by 2.3%
Niftty Dec futures trading at 4 pt discount versus 2 pt discount
Niftty Open Interest PCR at 1.12 versus 1.16
Niftty Calls add 25.9 lakh shares, Niftty Puts add 5.5 lakh shares
Niftty 5000 Dec Call adds 22.4 lakh shares
Niftty 4900 Dec Call adds 4.4 lakh shares
Niftty 4900 Jan Put adds 7.5 lakh shares
Niftty 5000 Jan Call adds 3.4 lakh shares
Niftty 5000 Dec Put sheds 9.2 lakh shares
Stock futures add 70.2 lakh shares in Open Interest
FIIs net sell Rs 600 crore in Niftty Futures on December 21
Niftty Futures Open Interest up by 7153 contracts on December 21
FIIs net buy Rs 376 crore in Niftty Options on December 21
Niftty Options Open Interest up by 35,610 contracts on December 21
FIIs net buy Rs 146 crore in Stock Futures on December 21
Stock Futures Open Interest up by 17,023 contracts on December 21
FIIs net buy Rs 27 crore in Stock Options on December 21
Total F&O Turnover FII contribution at 22.1% versus 16.8% on Friday
FIIs Fig :
FIIs net sell USD 17.8 million on December 16
Total F&O Open Interest up by Rs 1840 crore at Rs 1,15,839 crore
FIIs net sell Rs 292 crore in cash on December 21 (prov)
DIIs net buy Rs 354 crore in cash on December 21 (prov)
FIIs net sell Rs 52 crore in F&O on December 21
Stocks in News :
RIL – Llyondell Basell (LB) update: Sources
Working on revised binding proposal for stake in LB
May look at higher cash payout for strategic stake
Alternatively a restructuring plan to increase cash flow
Final offer may be combination of both
Proposal has to be attractive for creditors to gain support
Revised valuation for LB still not finalised
CNBC-TV18 ALERT: LB's own revised proposal is for approximately $8 billion
RIL – SEBI letter :
MCA orders scrutiny by Registrar Of Co’s after Sebi letter: Sources
Non-invasive scrutiny to be conducted by RoC;
Scrutiny on basis of info available in public domain & govt records: Srcs
MCA to ask for substantial evidence from Sebi & keen on proactive action by Sebi: Srcs
Alert: RIL issued 1,87,000 NCD’s worth Rs 300 crore in 1994 & 120 million equity shares in January 2000 on exercise of option warrants
Alert: Sebi asked MCA to look into share allotment, RIL board role & funding
Ispat Debt recast :
Lenders give final nod to Ispat Industries debt recast: Srcs
Total debt of Rs 6,500 crore across 14 lenders
Lenders approve Ispat Industries 1 MTPA coke oven plant in Raigad
Promoters asked to pledge 95% shareholding against 100%
Company to hedge interest risk of its Rs 2000 crore FX loan
Lenders approve company's Rs 500 crore QIP
Company aims to complete coke oven plant project by December 2011
CNBC-TV18 ALERT:
Coke Oven Plant an SPV, in JV with Stemcor
IDBI Bank, ICICI Bank & IFCI lead arrangers
A Raja Says :
4 slots of 3G to be auctioned
Slots to be allocated by August 2010
All slots to be given at same time
3G Auction to be conducted as per schedule; scheduled for January 14
Great Offshore open offer closes today
Russian Billionaire Len Blavathik says RIL bid of LB too low – ET
Golden Tobacco board approves developing its Vile Parle Property
Govt likely to ban FDI in tobacco – ET
Wadhwa group buy LBS plot for Rs 570 crore from Hindustan Composite – (Hindustan Composite is BSE listed Co – CMP Rs 358)
Joint house committee has recommending blacklisting Siemens, L&T and Zurich Airport for faulty design of Bengaluru International Airport – TOI (JHC also indicted Narayan Murthy, Rajeev Chandrashekar and others)
TVS Motors plans 200cc Motorcycle – BS
Ansal API plans to raise Rs 650 crore via QIP in February – FE (Management says cant comment on speculation)
Airlines to break even for first time in Seven quarters, Jet likely to break even, Spice may scoop a profit – DNA
Cement prices hiked by Rs 5/bag in Mumbai from Monday – DNA
Unity Infra raises Rs 73 crore via QIP at an issue price of Rs 506
Aegis Logistics board approves acquisition of 100% Equity Capital of Shell Gas
No circuit filter on Zandu Pharmaceuticals
Asian Oilfield board meet today to consider additional funding
IFCI in NSE F&O curb
Celebrations on Wall Street :
US markets climb on health bill.
Nasdaq at new 15-month high; Gold slips below $ 1100/oz
The Wall Street gained with the Nasdaq closing at a new 15-month high. Positive earnings, upgrades for Alcoa and Intel and the senate health-care bill advancing triggered gains despite the dollar index gradually gaining traction.
The Dow Jones Industrial Average was up 85.25 points, or 0.83% at 10,414.14. The Standard & Poor's 500 Index gained 11.58 points, or 1.05%, to 1,114.05. The Nasdaq composite Index rose 25.97 points, or 1.17, to end at 2,237.66, its highest close since September, 2008.
The dollar bounced back against the euro and yen after initial losses. The greenback gradually turned its 0.3% loss into a 0.4% gain. That marked the fifth straight advance for the dollar index.
Crude sold off in the face of the strong dollar. The move lower comes ahead of a much anticipated OPEC meeting later today where the Cartel is expected to leave production levels unchanged.
Precious metals hit intra-session lows in New York trade on the back of a strong dollar. February gold broke down through the 1100 dollar per ounce level without hesitation. It fell over 1% around 1096 dollar per ounce.
Base metals, apart from lead, rose comfortably on recovery hopes amidst a low-volume session heartened. The dollar's strength did not dampen sentiment too much either.
Healthcare stocks rose after a bill to overhaul the US healthcare system, which is perceived as less damaging to industry profits than expected, passed a crucial test in the US Senate early Monday.
Retail stocks also gained as investors were optimistic about the rest of the holiday shopping season even after a heavy snowstorm hit the East Coast over the weekend, which may have deprived retailers of profits.
Legislation to overhaul the US healthcare system passed a crucial test early Monday as backers cleared a procedural hurdle to approving the bill, which is President Barack Obama's top legislative priority.
Following the vote, the Morgan Stanley Health Payor index climbed 3 percent. Health insurers Aetna Inc added 4.7% to USD 34.04 and Cigna Corp rose 3.9% to USD 37.19.
The S&P 500 closed within a hair of a new 14-month high, while the Nasdaq ended at a 15-month high. In contrast, the Dow ended considerably below its 2009 closing high at 10,501.05, which it reached on Dec. 14.
Intel Corp gained 2.3% to $20.09 on Nasdaq after Barclays upgraded the stock to "overweight" from "equal weight", citing solid "end-market" conditions. Alcoa Inc gave the Dow its biggest boost after it announced a joint venture to build a $10.8 billion aluminum complex in Saudi Arabia.
Morgan Stanley raised its recommendation on Alcoa's stock to "buy," expecting the company to report increased profitability in its alumina and downstream divisions. Alcoa jumped 7.9% to USD 15.73 and helped lift the materials sector 1.2%.
Sentiment also brightened after several acquisition deals, including an agreement by Sanofi-Aventis to buy consumer healthcare company Chattem Inc for about USD 1.9 billion, driving Chattem's stock up 33.1% to USD 93.14.
TAKE TWO SLIDES AFTER THE BALL
Shares of Take Two Interactive Software Inc lost 5.1% toUSD 8.95 in extended trade after the company revised its outlook lower, citing the impact of the sale of its distribution business Jack of All Games.
Volume was light on the New York Stock Exchange, with only 1.01 billion shares changing hands, well below last year's estimated daily average of 1.49 billion. On the Nasdaq, about 1.84 billion shares traded, well below last year's daily average of 2.28 billion.
Advancing stocks outnumbered declining ones on the NYSE by about 11 to 4, while on the Nasdaq, two stocks rose for every one that fell.
Indian ADRs :
Indian ADRs ended mixed on Monday. In the IT space, Wipro was down 3.51% at $ 22.02, Infosys was down 1.02% at $ 54.08, Satyam Computers was down 2.21% at $ 4.86 and Patni Computers was down 1.97% at $ 19.89.
In the telecom space, Tata Communication was down 5.54% at $ 14.5 while MTNL was up 0.67% at $ 3.02. In the banking space, HDFC Bank was up 1.77% at $ 124.87 and ICICI Bank was up 1.31% at $ 34.71.
In other sectors, Dr Reddy’s Labs was up 0.73% at $ 26.13, Tata Motors was up 0.06% at $ 15.73 while Sterlite Industries was down 3.03% at $ 16.98.
Dubai World to meet creditors, offer no proposal :
Dubai World will not make any concrete proposals to delay $22 billion in debt when it meets creditors on Monday, a move that is likely to dismay investors who have been left in the dark for weeks.
Saddled with debts and in need of restructuring, Dubai's flagship company had been expected to formalise a request for a payment standstill when it meets some 90 creditors at Dubai's World Trade Center complex from 0930 GMT on Monday.
But Dubai World moved to temper expectations, saying its two-hour presentation would only offer a look at its financial situation.
Dubai, which faces more debt maturities in 2010, may receive more aid from either the United Arab Emirates federal government or wealthy fellow member, Abu Dhabi, the UAE's economy minister said on Monday.
Asked whether the UAE government will extend more financial support to Dubai next year, Sultan bin Saeed al-Mansouri said the situation would be evaluated.
"This issue has to be studied in a proper manner, evaluated and based on that, an answer will be provided on the federal level or the local level because the way we see this is one economy not separated from each other," he told reporters on the sidelines of a conference.
The United Arab Emirates will not change economic forecasts for 2010 as a result of Dubai's debt crisis, which will not have a "huge reflection" on the Gulf Arab state, the economy minister said on Monday.
Dubai sent shockwaves through global markets on Nov. 25 when it requested a standstill on USD26 billion of debts linked to Dubai World and its two property units Nakheel and Limitless. The emirate's total debt has been estimated at USD100 billion.
Asked whether the UAE would need to lower its forecasts for next year, Sultan al-Mansouri said: "I don't think so because of the size of the issue."
http://www.integrity.org.in/
22 Dec 2009 09:27
Asian Market Updates :
SGX Nifty : 4973 (+33 points)
Hang Seng : 21201 (+253.79 points)
Nikkei : 10329 (+146.31)
On strong global cues our market will open strong.Nifty support at 4940-50 and will resist at 4992/5050 levels.
Banking will give smart recovery especially ICICIBank,HDFCBank & HDFC
Buy BankNifty abv 8610 with a sl of 8570 for Trgt 8750 (positional)
Titan 1350 Trg 1400-1412
Jindal Saw
DishTv
NSE may consider 9-5 trading in index futures.
F&O Updates :
Total Futures Open Interest up by Rs 165 crore, Total Options Open Interest up by Rs 1674 crore
Niftty down 0.7%, Futures Open Interest up by 2.3%
Niftty Dec futures trading at 4 pt discount versus 2 pt discount
Niftty Open Interest PCR at 1.12 versus 1.16
Niftty Calls add 25.9 lakh shares, Niftty Puts add 5.5 lakh shares
Niftty 5000 Dec Call adds 22.4 lakh shares
Niftty 4900 Dec Call adds 4.4 lakh shares
Niftty 4900 Jan Put adds 7.5 lakh shares
Niftty 5000 Jan Call adds 3.4 lakh shares
Niftty 5000 Dec Put sheds 9.2 lakh shares
Stock futures add 70.2 lakh shares in Open Interest
FIIs net sell Rs 600 crore in Niftty Futures on December 21
Niftty Futures Open Interest up by 7153 contracts on December 21
FIIs net buy Rs 376 crore in Niftty Options on December 21
Niftty Options Open Interest up by 35,610 contracts on December 21
FIIs net buy Rs 146 crore in Stock Futures on December 21
Stock Futures Open Interest up by 17,023 contracts on December 21
FIIs net buy Rs 27 crore in Stock Options on December 21
Total F&O Turnover FII contribution at 22.1% versus 16.8% on Friday
FIIs Fig :
FIIs net sell USD 17.8 million on December 16
Total F&O Open Interest up by Rs 1840 crore at Rs 1,15,839 crore
FIIs net sell Rs 292 crore in cash on December 21 (prov)
DIIs net buy Rs 354 crore in cash on December 21 (prov)
FIIs net sell Rs 52 crore in F&O on December 21
Stocks in News :
RIL – Llyondell Basell (LB) update: Sources
Working on revised binding proposal for stake in LB
May look at higher cash payout for strategic stake
Alternatively a restructuring plan to increase cash flow
Final offer may be combination of both
Proposal has to be attractive for creditors to gain support
Revised valuation for LB still not finalised
CNBC-TV18 ALERT: LB's own revised proposal is for approximately $8 billion
RIL – SEBI letter :
MCA orders scrutiny by Registrar Of Co’s after Sebi letter: Sources
Non-invasive scrutiny to be conducted by RoC;
Scrutiny on basis of info available in public domain & govt records: Srcs
MCA to ask for substantial evidence from Sebi & keen on proactive action by Sebi: Srcs
Alert: RIL issued 1,87,000 NCD’s worth Rs 300 crore in 1994 & 120 million equity shares in January 2000 on exercise of option warrants
Alert: Sebi asked MCA to look into share allotment, RIL board role & funding
Ispat Debt recast :
Lenders give final nod to Ispat Industries debt recast: Srcs
Total debt of Rs 6,500 crore across 14 lenders
Lenders approve Ispat Industries 1 MTPA coke oven plant in Raigad
Promoters asked to pledge 95% shareholding against 100%
Company to hedge interest risk of its Rs 2000 crore FX loan
Lenders approve company's Rs 500 crore QIP
Company aims to complete coke oven plant project by December 2011
CNBC-TV18 ALERT:
Coke Oven Plant an SPV, in JV with Stemcor
IDBI Bank, ICICI Bank & IFCI lead arrangers
A Raja Says :
4 slots of 3G to be auctioned
Slots to be allocated by August 2010
All slots to be given at same time
3G Auction to be conducted as per schedule; scheduled for January 14
Great Offshore open offer closes today
Russian Billionaire Len Blavathik says RIL bid of LB too low – ET
Golden Tobacco board approves developing its Vile Parle Property
Govt likely to ban FDI in tobacco – ET
Wadhwa group buy LBS plot for Rs 570 crore from Hindustan Composite – (Hindustan Composite is BSE listed Co – CMP Rs 358)
Joint house committee has recommending blacklisting Siemens, L&T and Zurich Airport for faulty design of Bengaluru International Airport – TOI (JHC also indicted Narayan Murthy, Rajeev Chandrashekar and others)
TVS Motors plans 200cc Motorcycle – BS
Ansal API plans to raise Rs 650 crore via QIP in February – FE (Management says cant comment on speculation)
Airlines to break even for first time in Seven quarters, Jet likely to break even, Spice may scoop a profit – DNA
Cement prices hiked by Rs 5/bag in Mumbai from Monday – DNA
Unity Infra raises Rs 73 crore via QIP at an issue price of Rs 506
Aegis Logistics board approves acquisition of 100% Equity Capital of Shell Gas
No circuit filter on Zandu Pharmaceuticals
Asian Oilfield board meet today to consider additional funding
IFCI in NSE F&O curb
Celebrations on Wall Street :
US markets climb on health bill.
Nasdaq at new 15-month high; Gold slips below $ 1100/oz
The Wall Street gained with the Nasdaq closing at a new 15-month high. Positive earnings, upgrades for Alcoa and Intel and the senate health-care bill advancing triggered gains despite the dollar index gradually gaining traction.
The Dow Jones Industrial Average was up 85.25 points, or 0.83% at 10,414.14. The Standard & Poor's 500 Index gained 11.58 points, or 1.05%, to 1,114.05. The Nasdaq composite Index rose 25.97 points, or 1.17, to end at 2,237.66, its highest close since September, 2008.
The dollar bounced back against the euro and yen after initial losses. The greenback gradually turned its 0.3% loss into a 0.4% gain. That marked the fifth straight advance for the dollar index.
Crude sold off in the face of the strong dollar. The move lower comes ahead of a much anticipated OPEC meeting later today where the Cartel is expected to leave production levels unchanged.
Precious metals hit intra-session lows in New York trade on the back of a strong dollar. February gold broke down through the 1100 dollar per ounce level without hesitation. It fell over 1% around 1096 dollar per ounce.
Base metals, apart from lead, rose comfortably on recovery hopes amidst a low-volume session heartened. The dollar's strength did not dampen sentiment too much either.
Healthcare stocks rose after a bill to overhaul the US healthcare system, which is perceived as less damaging to industry profits than expected, passed a crucial test in the US Senate early Monday.
Retail stocks also gained as investors were optimistic about the rest of the holiday shopping season even after a heavy snowstorm hit the East Coast over the weekend, which may have deprived retailers of profits.
Legislation to overhaul the US healthcare system passed a crucial test early Monday as backers cleared a procedural hurdle to approving the bill, which is President Barack Obama's top legislative priority.
Following the vote, the Morgan Stanley Health Payor index climbed 3 percent. Health insurers Aetna Inc added 4.7% to USD 34.04 and Cigna Corp rose 3.9% to USD 37.19.
The S&P 500 closed within a hair of a new 14-month high, while the Nasdaq ended at a 15-month high. In contrast, the Dow ended considerably below its 2009 closing high at 10,501.05, which it reached on Dec. 14.
Intel Corp gained 2.3% to $20.09 on Nasdaq after Barclays upgraded the stock to "overweight" from "equal weight", citing solid "end-market" conditions. Alcoa Inc gave the Dow its biggest boost after it announced a joint venture to build a $10.8 billion aluminum complex in Saudi Arabia.
Morgan Stanley raised its recommendation on Alcoa's stock to "buy," expecting the company to report increased profitability in its alumina and downstream divisions. Alcoa jumped 7.9% to USD 15.73 and helped lift the materials sector 1.2%.
Sentiment also brightened after several acquisition deals, including an agreement by Sanofi-Aventis to buy consumer healthcare company Chattem Inc for about USD 1.9 billion, driving Chattem's stock up 33.1% to USD 93.14.
TAKE TWO SLIDES AFTER THE BALL
Shares of Take Two Interactive Software Inc lost 5.1% toUSD 8.95 in extended trade after the company revised its outlook lower, citing the impact of the sale of its distribution business Jack of All Games.
Volume was light on the New York Stock Exchange, with only 1.01 billion shares changing hands, well below last year's estimated daily average of 1.49 billion. On the Nasdaq, about 1.84 billion shares traded, well below last year's daily average of 2.28 billion.
Advancing stocks outnumbered declining ones on the NYSE by about 11 to 4, while on the Nasdaq, two stocks rose for every one that fell.
Indian ADRs :
Indian ADRs ended mixed on Monday. In the IT space, Wipro was down 3.51% at $ 22.02, Infosys was down 1.02% at $ 54.08, Satyam Computers was down 2.21% at $ 4.86 and Patni Computers was down 1.97% at $ 19.89.
In the telecom space, Tata Communication was down 5.54% at $ 14.5 while MTNL was up 0.67% at $ 3.02. In the banking space, HDFC Bank was up 1.77% at $ 124.87 and ICICI Bank was up 1.31% at $ 34.71.
In other sectors, Dr Reddy’s Labs was up 0.73% at $ 26.13, Tata Motors was up 0.06% at $ 15.73 while Sterlite Industries was down 3.03% at $ 16.98.
Dubai World to meet creditors, offer no proposal :
Dubai World will not make any concrete proposals to delay $22 billion in debt when it meets creditors on Monday, a move that is likely to dismay investors who have been left in the dark for weeks.
Saddled with debts and in need of restructuring, Dubai's flagship company had been expected to formalise a request for a payment standstill when it meets some 90 creditors at Dubai's World Trade Center complex from 0930 GMT on Monday.
But Dubai World moved to temper expectations, saying its two-hour presentation would only offer a look at its financial situation.
Dubai, which faces more debt maturities in 2010, may receive more aid from either the United Arab Emirates federal government or wealthy fellow member, Abu Dhabi, the UAE's economy minister said on Monday.
Asked whether the UAE government will extend more financial support to Dubai next year, Sultan bin Saeed al-Mansouri said the situation would be evaluated.
"This issue has to be studied in a proper manner, evaluated and based on that, an answer will be provided on the federal level or the local level because the way we see this is one economy not separated from each other," he told reporters on the sidelines of a conference.
The United Arab Emirates will not change economic forecasts for 2010 as a result of Dubai's debt crisis, which will not have a "huge reflection" on the Gulf Arab state, the economy minister said on Monday.
Dubai sent shockwaves through global markets on Nov. 25 when it requested a standstill on USD26 billion of debts linked to Dubai World and its two property units Nakheel and Limitless. The emirate's total debt has been estimated at USD100 billion.
Asked whether the UAE would need to lower its forecasts for next year, Sultan al-Mansouri said: "I don't think so because of the size of the issue."
http://www.integrity.org.in/
Monday, December 21, 2009
21 Dec 2009 16:25
21 Dec 2009 16:25
The selling in almost all the sectors hammered the Sensex. It lost over 100 points in the last half an hour of trade. Capital goods, metal, auto and realty stocks were the major losers. The Nifty also touched 4950 during the day but managed to close above that level.
Among the largecaps, Reliance Industries, TCS, NTPC, Wipro, Cairn, ICICI Bank and Idea Cellular were the only gainers. Overall, the markets witnessed consolidation in today's trade as well.
Laurence Balanco, Asian Technical Research at CLSA said, "As long as we can consolidate between this 4400 and 5200 area, I still think that would be a positive foundation that is formed for the break to the upside."
The 50-share NSE Nifty fell 0.7% or 35.10 points, to settle at 4,952.60, after hitting an intraday low of 4,943.95.
Reliance Industries slipped over 1% in early trade but it clawed back in the green and closed 0.9% higher. There were reports that SEBI asked government to consider action against the company for allegedly routing funds to dummy companies for buying large quantity of its shares in 2000.
The BSE Capital Goods, Metal, Realty and Auto indices declined 1.2-1.6%. Capital goods was the major losing sector; L&T fell 2.38%. BHEL, ABB and Punj Lloyd were down over 1%. Siemens was down 0.27%.
Metal stocks like NALCO and Hindalco tumbled 4% each. Sterlite Industries, Jindal Steel, JSW Steel, Tata Steel, Sesa Goa and SAIL lost 0.6-2%.
Among the auto stocks, M&M, Bajaj Auto, Ashok Leyland, Maruti Suzuki and Apollo Tyres slipped 1.5-3%. Bharat Forge, Tata Motors, Amtek Auto and Hero Honda were down 0.3-1%.
DLF and Unitech fell over 2% in the realty space.
Nava Bharat Ventures surged 5.6% with 750% jump in volumes, as its subsidiary Nava Bharat Singapore has acquired 65% equity stake in Maamba Collieries Limited.
Zee Entertainment Enterprises gained 4%, it will consider a proposal for restructuring of the businesses of ETC Networks Ltd, a Subsidiary of the company. ETC Networks rallied 5% and its volumes surged 1,061%.
Prime Focus rose 3% but volumes jumped 1,063%, as it earned $18 million for providing visual effects in Avatar Movie.
MRF plunged nearly 7% though its FY09 numbers were good. It has reported 75% growth in its FY09 consolidated net profit of Rs 250.8 crore as against Rs 143.4 crore in previous year. Consolidated net sales increased 12.32% to Rs 5,668.3 crore versus Rs 5,046.4 crore.
The F&O segment is not looking good today. We have seen constant selling by FIIs. Last week they sold around Rs 3000 crore in the F&O put together. The discount is still maintained around 4-5 points and we are seeing addition of 20 lakh shares in the futures.
The important thing in options is that we were seeing call writing happening at 5,200-5,100 last week but today we have started to see is that people are writing calls at the 5,000 level as well.
In the 5,000 call we have seen an addition of 17.5 lakh shares in open interest, which is huge on this base, and the premium has come down by 27%. So we are not seeing good signs coming from there.
The selling in almost all the sectors hammered the Sensex. It lost over 100 points in the last half an hour of trade. Capital goods, metal, auto and realty stocks were the major losers. The Nifty also touched 4950 during the day but managed to close above that level.
Among the largecaps, Reliance Industries, TCS, NTPC, Wipro, Cairn, ICICI Bank and Idea Cellular were the only gainers. Overall, the markets witnessed consolidation in today's trade as well.
Laurence Balanco, Asian Technical Research at CLSA said, "As long as we can consolidate between this 4400 and 5200 area, I still think that would be a positive foundation that is formed for the break to the upside."
The 50-share NSE Nifty fell 0.7% or 35.10 points, to settle at 4,952.60, after hitting an intraday low of 4,943.95.
Reliance Industries slipped over 1% in early trade but it clawed back in the green and closed 0.9% higher. There were reports that SEBI asked government to consider action against the company for allegedly routing funds to dummy companies for buying large quantity of its shares in 2000.
The BSE Capital Goods, Metal, Realty and Auto indices declined 1.2-1.6%. Capital goods was the major losing sector; L&T fell 2.38%. BHEL, ABB and Punj Lloyd were down over 1%. Siemens was down 0.27%.
Metal stocks like NALCO and Hindalco tumbled 4% each. Sterlite Industries, Jindal Steel, JSW Steel, Tata Steel, Sesa Goa and SAIL lost 0.6-2%.
Among the auto stocks, M&M, Bajaj Auto, Ashok Leyland, Maruti Suzuki and Apollo Tyres slipped 1.5-3%. Bharat Forge, Tata Motors, Amtek Auto and Hero Honda were down 0.3-1%.
DLF and Unitech fell over 2% in the realty space.
Nava Bharat Ventures surged 5.6% with 750% jump in volumes, as its subsidiary Nava Bharat Singapore has acquired 65% equity stake in Maamba Collieries Limited.
Zee Entertainment Enterprises gained 4%, it will consider a proposal for restructuring of the businesses of ETC Networks Ltd, a Subsidiary of the company. ETC Networks rallied 5% and its volumes surged 1,061%.
Prime Focus rose 3% but volumes jumped 1,063%, as it earned $18 million for providing visual effects in Avatar Movie.
MRF plunged nearly 7% though its FY09 numbers were good. It has reported 75% growth in its FY09 consolidated net profit of Rs 250.8 crore as against Rs 143.4 crore in previous year. Consolidated net sales increased 12.32% to Rs 5,668.3 crore versus Rs 5,046.4 crore.
The F&O segment is not looking good today. We have seen constant selling by FIIs. Last week they sold around Rs 3000 crore in the F&O put together. The discount is still maintained around 4-5 points and we are seeing addition of 20 lakh shares in the futures.
The important thing in options is that we were seeing call writing happening at 5,200-5,100 last week but today we have started to see is that people are writing calls at the 5,000 level as well.
In the 5,000 call we have seen an addition of 17.5 lakh shares in open interest, which is huge on this base, and the premium has come down by 27%. So we are not seeing good signs coming from there.
21 December 2009
December 21st 2009 09:25
Today market may open flat as mixed and flat Asian cues.
SGX Nifty :
Hangseng : -61.42 21114.46
Nikkei : +56.38 10198.43
SSE : -19.30 3094.59
STI : 2800.18 -2.41
Stocks in News :
RIL – RNRL update
Arguments in RIL-RNRL D6 gas case conclude at SC (Supreme Court)
Solicitor General Says:
Government property being used for mergers-demergers
EGoM (Empowered Group of Minister) decided pricing, allocation can't be challenged
Govt has been subject to trial by ambush
Surprised that RIL claimed RNRL allocated gas by EGoM
RIL no more than an agent for selling gas
SEBI asks govt to mull action against RIL for allegedly routing funds to dummy cos for buying large quantity of its shares in 2000: PTI
MRF : FY09 results today
IFCI : NSE F&O curb
Drreddy : KCR warns that illegal lands acquired by Dr.Reddy and IMAX will be confiscated once Telengan is formed.
REC : FPO to hit markets in January-February 2010: Power Ministry
ONGC : declares 2 gas finds, Rs 18 per share dividend.
Bright Brothers : Open offer at Rs 50 (CMP 43)
Golden Tobacco board meet to consider development of properties.
Indiabulls Financials, Societe General sever ties for life insurance JV – FE
Petroleum Ministry has asked Finance Ministry to give infra status to E&P, also extend subsidy of LPG and Kerosene beyond March 2010 – FE
Welspun to merge 3 investment firms to unlock value, raise funds – Mint
Prime Focus earned $18 million for providing visual effects in Avatar – BS
Tata Communications ADR up 6.4%
Weekly Technical View:
Now the next crucial support is at 4940-4950 levels. Consistently close below these levels will change the market sentiments and we can expect Nifty to come till 4916 and more bold upto 4811.The weekly resistance for the Niffty is at 5040-5065 levels. Consolidation with down trend still persists. Stay cautious till breakouts either.
After making Doji candlestick previous week, Nifty showed selling pressure, which shows Bears are having control at the moment. However, Nifty is still trading above its important support at 4940 levels. As long as 4940 levels are intact, volatility and range bound scenario in 4940-5050 may take place. On breakdown of 4940 levels, selling pressure may accelerate. On short term basis, Nifty is trading below 4990 levels, which shows short term down trend is on.
For trading during the coming trading sessions, trend deciding level is 4990. If Nifty shows strength above 4990 levels then we may see rally to 5050/5090/5150.If Nifty doesn’t sustain above 4990 then decline to /4950/4850/4790 may be seen.
Recommendation for Monday- Intra Day Trading
Scrip (LTP) Action At Price For Target of Stop Loss Duration
MPHASIS (725.60) BUY ABOVE 726 742 716 1 day
DLF (357.40) SELL BELOW 357 350 363 1 day
Positional Views :
Buy:( Symbol /sl / Target / Specifications)
Sintex 238 258
Strtech 315 Abv 322
Essaroil 138 152 / 158 Abv 144
Jaysreetea 332 355
Thermax 573 598
Amarajabat 156 177 Buy at 161-163
MSKProj 94 101 / 105
HDFC* 2517 2676 Bounceback expected, buy abv 2618
HDFCBank* 1615 Bounce back exp
ICICIBank* Watch
IDFC 144 Buy at dips
ITC 239 Buy at dips
Sell :
IDBI 128 118
Jisljaleqs 848 780
Mcdowell-n 1260 1171
HDIL 344 333 / 320 Below 332
CMC 1340 1287 / 1260 Below 1287
IOC 303 291 Below 297
Dabur 166 157
DLF 366 351
Gail 405 384 Below 397
Grasim Range 2440-2370
Jpassociat 151 137 Sell below 144, Po
LT 1572 Sell 1640
Sesagoa 368 351 Below 365
Technical View: NIFTY Future
In last week, Nifty December Future opened at 5105, touched the high of 5167.50 and then due to profit taking at higher levels tested the low of 4972.10 & closed at 4986.80. The main point to be noted is that Nifty future is making lower bottoms & lower tops. Even nifty future failed to cross the high of previous week. Nifty future is broadly range bound in 5150-4950 levels. If Nifty future decline below 4950 levels then selling pressure till 4870 -4820-4770 levels may also be seen.
Trading strategy for Medium term Traders : On Medium term basis, Nifty has resistance zone of 5180-5200.
Medium term support zone is 4750-4800. Selling on rallies may be considered around 5050-5100 level with the short term SL of 5150 for the target of 4980-4920-4850.
Trading strategy for Short term Traders: Short term trend of Nifty is range bound & selling on rallies may be considered around 5035-5070 level with the SL of 5110 for the target of 4950-4920-4880. If Nifty trades below 4950 in coming few sessions, then it may test the levels of 4920-4880-4850.
Market Indices
SECTORAL INDICES
INDICES 11-Dec-09 18-Dec-09 Change
(%)
Difference
BSE
Sensex 17119.03 16719.83 -2.33% -399.2
Bankex 10106.17 9542.94 -5.57% -563.23
IT Index 4900.47 5046.65 2.98% 146.18
Metal Index 16419.26 16226.29 -1.18% -192.97
FMCG Index 2848.82 2755.94 -3.26% -92.88
Cap. Goods Index 13877.95 13686.33 -1.38% -191.62
Realty Index 3922.62 3708.76 -5.45% -213.86
Consumer Durables Index 3549.43 3530.78 -0.53% -18.65
Healthcare Index 4932.29 5117.57 3.76% 185.28
PSU Index 9306.83 9083.13 -2.40% -223.7
Mid-Cap Index 6574.49 6470.58 -1.58% -103.91
NSE
S&P CNX Nifty 5117.30 4987.70 -2.53% -129.60
Bank Nifty 9097.20 8599.95 -5.47% -497.25
CNX IT Index 5521.05 5682.80 2.93% 161.75
S&P CNX 500 4242.90 4153.05 -2.12% -89.85
GLOBAL INDICES 11-Dec-09 18-Dec-09 Change
(%)
Difference
US Market
NASDAQ 2190.31 2211.69 0.98 21.38
Dow Jones 10471.50 10328.89 -1.36 -142.61
S & P 500 1106.41 1102.47 -0.36 -3.94
European Market
FTSE 100 5261.57 5196.81 -1.23 -64.76
CAC 40 3803.72 3794.44 -0.24 -9.28
Asian Market*
Nikkei 10107.87 10142.05 0.34 34.18
Strait Times 2800.75 2802.59 0.07 1.84
Hang seng 21902.11 21175.88 -3.32 -726.23
Shanghai Comp. 3247.32 3113.89 -4.11 -133.43
Institutional Activity (Equity)
(Rs. In Cr)
Day Wise Purchase Sale Net
FII Activity
Friday 2167.80 1825.70 342.10
Monday 1830.10 1655.60 174.50
Tuesday 2295.40 2181.40 114.00
Wednesday 2215.10 2354.40 -139.30
Thursday 2534.60 2045.50 489.10
Friday (provisional) 2227.95 2434.80 -206.85
Total 13,270.95 12,497.40 773.55
DII Activity
Friday 1523.92 1531.09 -7.17
Monday 1212.42 1103.50 108.92
Tuesday 1273.19 1234.50 38.69
Wednesday 1381.57 1106.65 274.92
Thursday 1225.62 1092.34 133.28
Friday (provisional) 1391.31 1060.36 330.95
Total 8008.03 7128.44 879.59
Weekly Sectoral Roundup
Out performer Under performer Neutral
HEALTHCARE (+3.76%) BANK (-5.57%)
IT (+2.98%) REALTY (-5.45%)
AUTO (+0.21%) OIL&GAS (-4.08%)
CAPITALGOODS (-1.38%) FMCG (-3.26%)
METAL (-1.18%)
Weekly Top Gainers
Name close Last Week close %change
DR.REDDY 1207.05 1103.05 9.43
RANBAXY LAB. 530.35 497.75 6.55
A.C.C. 861.65 816.75 5.50
ASIAN PAINT 1800.05 1707.35 5.43
HCL TECHNOLO 365.30 347.50 5.12
Weekly Top Losers
Name close Last Week close %change
ICSA 166.10 184.80 ‐10.12
ANDHRA BANK 102.45 113.85 ‐10.01
MCDOWELL 1227.35 1358.90 ‐9.68
LITL 536.40 586.90 ‐8.60
BALRAMPUR C. 132.80 144.80 ‐8.29
Outlook for the Week
Nifty opened the week on a negative note at 5117.45 levels and after making initial high at 5156.70, showed selling pressure during the week. Nifty made low of 4979.05 levels and closed the week in red at 4987.70 levels with 2.53% loss. Volumes were at par with previous session. After making Doji candlestick previous week, Nifty showed selling pressure, which shows Bears are having control at the moment. However, Nifty is still trading above its important support at 4940 levels. As long as 4940 levels is intact, volatility and range bound scenario in 4940-5050 may take place. On breakdown of 4940 levels, selling
pressure may accelerate. On short term basis, Nifty is trading below 4990 levels, which shows short term down trend is on.
For trading during the coming trading sessions, trend deciding level is 4990. If Nifty shows strength above 4990 levels then we may see rally to 5050/5090/5150. If Nifty doesn’t sustain above 4990 then decline to 4950/4850/4790 may be seen.
NIFTY Futures View :
Nifty December Future opened at 5105, touched the high of 5167.50 and then due to profit taking at higher levels tested the low of 4972.10 & closed at 4986.80.
The main point to be noted is that Nifty future is making lower bottoms & lower tops. Even nifty future failed to cross the high of previous week. Nifty future is broadly range bound in 5150-4950 levels. If Nifty future decline below 4950 levels then selling pressure till 4870 -4820-4770 levels may also be seen.
Trading strategy for Medium term Traders: On
Medium term basis, Nifty has resistance zone of 5165-5200. Medium term support zone is 4700-4800.
Selling on rallies may be considered around 5050-5100 level with the short term SL of 5150 for the target of 4980-4920-4850.
Trading strategy for Short term Traders: Short term trend of Nifty is range bound & selling on rallies may be considered around 5035-5070 level with the SL of 5110 for the target of 4950-4920-4880. If Nifty trades below 4950 in coming few sessions, then it may test the levels of 4920-4880-4850.
Note : On a regular daily basis confirm the bias of the market which may give pull backs depend upon the Global markets.
Corporate Updates:
• IVRCL to develop terminal in Pardip Refinery worth Rs30bn
• Gammon India wins 220KV transmission line order from
Algeria worth Rs$22.5mn
• Pratibha Industries wins Rs1.04bn order from Delhi..
• Mcnally Bharat wins order worth Rs3.3bn from SAIL
• KEC International wins six orders worth Rs5.50bn..
• Pratibha Industries wins order worth Rs1.3bn..
• HCC wins order worth Rs3.18bn from Kolkata
News:
• ONGC to pay dividend at Rs18 per share
• Supreme Court today said it will give its verdict on the gas
dispute between Reliance Industries and Reliance Natural
Resources at a later date after both the parties concluded
their oral arguments.
• Essar Oil won three coal-bed methane blocks after an Indian
government panel rejected bids by a group led by Deep
Industries - PTI reported
Fundamental Calls:(Source)
Lloyd Electric & Engineering Ltd. : Buy
Company background
Lloyd Electric and Engineering Ltd (LEEL) is engaged in the business of condenser coils and evaporator coils. The products of the company are used as original equipment in window, package, automotive and split air Conditioners.
It also supplies to OEMs such as Samsung, LG Electronics, Carrier, Haier, Voltas, Blue Star and Indian Railways, etc. The company has five plants, three domestic and two international:-
1. Bhiwadi Distt. Alwar,Rajasthan.
2. Sirmour, Nahan Himachal Pradesh.
3. Selakui Dehradun,Uttranchal.
4. Radotin Vrazaska, Prague, Chez republic (Owned by Subsidiary).
5. Ras Al Khaimah United Arab Emirates (Owned by Subsidiary).
Installed Capacity
Type Capacity
Condensing & Evaporator Coil Set (Tonne) 12,25,000
Fan coil units /Cooling Unit 10,000
All types of air conditioners up to 15 ton capacity 4,02,000
Sheet Metal (for mfg. coil) 3,00,000
Parts of air conditioner/cooling 10,000
Investment Rationale
Sales on the re-bound: - The Company had reported a drop in sales in FY09 over FY08. The drop was nearly
12%. This was primarily due to the melt down global market. In H1FY10; the company has reported an increase
in sales by 12%. Its PAT has also increased by 10% over HIFY09.Going forward, we expect the company to post
increase in revenue for H2FY10 too. The company would be able to maintain its PAT for H2FY10 too.
Demand for products also picking up: - The year 2008-09 was a challenging year with global recession casting its shadow on the Indian economy, resulting in sharp contraction of demand, pressures on liquidity and adverse consumer sentiments. India remains a growth economy with demand for consumer durable robust.
Increase in Urbanization across the cities would result in increase in demand for Luxury goods such as Airconditioning.
Demand for AC from transport segment is also picking up. The analysis sales for the company for products indicates that the company had witnessed drop in volume and price for its products in FY09 over FY08, however, we believe that the situation is reversing as the company has reported better sales and profits in the last two quarters.
Stabilizing Operating Profits: - The Company has reported an improvement of 126 Bps in PBDIT margins QoQ and 240 Bps YoY for the Q2FY10. We expect the company to maintain these margins in the coming quarters.
Growing organically and inorganically: -In FY09, the company acquired Luvata Czech s.r.o., a manufacturer of customized finned pack heat exchangers coils in Prague, Czech Republic through its special purpose vehicle (SPV) namely Lloyd Coils Europe s.r.o, a subsidiary company. The company has recently acquired the assets of
Janka Radotin, manufacturer of the products in the field of Air Handling Units, major components of HVAC system (Heating, Venting, and Air Conditioning systems). It is well positioned to cater to European markets and significant upside in its top line and bottom-line can be expected in the coming years.
Lloyd Coils Europe, a subsidiary of LEEL, has reported losses in tunes of Rs 19 Cr in FY09. The global economic conditions last year resulted in tough economic conditions for manufacturers across the globe. The company had acquired Luvata Czech s.r.o. through debt and GDR route and the financing cost resulted the company in reporting a loss of Rs 19cr (TCZK 7.44 Cr), although the operating loss for the company was at Rs
1.04 Cr. (TCZK 44 Lakh). We expect the subsidiary to do well in the current financial year and limit the losses in bottom-line.
The company had not given dividend last year on account of slowdown. But with improving profitability the company can re-commence dividend payment to its shareholders. We have projected that the company can pay 10% dividend to its shareholders in FY10. However, the quantum of dividend would be influenced by losses of subsidiaries and acquisitions.
The current order-book for the company is at Rs 400-500 Cr that is executable over the next twelve months.
Peer-set Comparison
FY09(Rs Cr) Blue Star Hitachi Home Lloyd Electric
Net Sales 2552.29 466.64 585.32
Total Income 2574.03 477.13 587.9
Total Expenditure 2296.38 439.74 537.81
PBIDT 277.65 37.39 50.09
APAT 180.29 21.07 20.37
EPS 20.04 9.18 6.57
Equity (FV) 17.99(2) 22.96(10) 31(10)
PBIDTM (%) 10.88 8.01 8.56
PATM (%) 7.06 4.52 3.48
Cmp (Rs) 359.2 136.3 61.7
P.E(x) 17.92 14.85 9.39
The peer set is not strictly comparable
Risk and Concern
The company’s raw material cost constitutes a high percentage of its expenditure. Copper is the chief raw material for the company. Any increase in raw material cost would adversely affect its profitability.
Sharp increase in interest rates, dwindling demand for various products impacting inventory levels and higher credit risks for the company also exist.
Economic condition and its consequent impact on customer’s demand can affect Lloyd Electric’s sales and profitability.
The company has been growing inorganically and acquired assets recently too. We have considered that the subsidiary of the company would be limiting its losses in this financial year. But incase this does not happen our projections can be skewed downwards.
Valuation and Recommendation
The company is rebounding from a tepid FY09 and has posted good results in H1FY10. The company reported improvement in sales by 12% in H1FY10 versus HIFY09. We expect the company to report good result in the coming quarters that would be a marked improvement over H2FY09. We have projected that the company would report an EPS of 11.88 for FY10. At CMP the scrip is trading at earnings multiple of 5.22x.We have not taken into account the
losses at company’s subsidiary, incase the subsidiary accrues similar losses the company’s bottom-line can be skewed downwards. We recommend investors to buy the stock at Rs 60 with a medium term target of Rs 70. However, due to market volatility a potential downside of 10-15% cannot be ruled out.
Mumbai based Mukand was started in 1937 by prominent industrialist of Pre-Independent era, Late Sh. Jamlal Bajaj.
He founded the Bajaj group of companies. The group now has 24 companies. Besides Bajaj Auto Ltd, the other major companies in the group include Bajaj Finserv Ltd, Bajaj Electricals Ltd , Mukand Engineers Ltd and Bajaj Hindustan Ltd (Bajaj Hindustan has separated from the group).
The major activities of the company include:
Steel Alloys
It manufactures a wide variety of steel and steel alloys like Carbon alloy steel, free-cutting steel, semi free-cutting steel, cold heading quality steel including boron steel, austenitic, ferritic and martens tic stainless steel, spring steel including chrome vanadium steel, high carbon steel, electrode quality steel, boiler quality steel etc.
It products meet various international specifications like Japanese (JIS), German (DIN) American (AISI/SAE) and Indian standards (BIS) etc.
Its products are used by a host of industries like surgical instruments, stainless steel for industrial applications, in passenger cars and commercial vehicles, seamless tubes, consumer durables, bearings, making springs for railway freight cars, components for textile machinery, components for military hardware etc.
Engineering & Machinery (E&M)
It makes engineering products like Electric Overhead Travelling (EOT) cranes, Electrical Level Luffing crane, Gantry crane, container handling crane. Bulk Material Handling Equipment, Process Plant equipments etc. used in Steel plants, Cement plants, Aluminum plants, Copper plants, Power plants, Defense, Textile etc.
Infrastructure & Trunkey Projects
Company is also constructing roads, highways, building civil, structural and mechanical work at steel plants, power plants, service structure for assembly of augmented satellite launching vehicle (ASLV) for Indian Space Research Organization (ISRO) etc.
The sales break-up of the company stands as:
Investment Rationale
• After sharp slow down during the H2 FY09 and early part of H1 FY10, there is good revival in global economies, from the mid of FY10.
• Indian economy is also back on its long term growth trajectory.
• India is emerging as a major hub for a host of global industries like Automobile, which would create demand for steel.
• The Govt is spending good funds for infrastructure development of the country, Roads, City Transportation, Power, Oil & Gas etc.
• Indian railways and Defense are also spending huge amount on hardware.
• After slow down in past 1 years, reality sector is also witnessing demand revival.
• Besides, it also provides Engineering services and products for diverse applications.
• Infrastructure division has very small share in overall business, good order inflows can be expected as Govt is giving more orders for infra projects.
• The company in JV with Vini Iron has been allotted a Coal block of 10.05 Million Tonnes. Mukand has 48.8% stake in JV Mukand Vini Minerals (P) Ltd.
• The company has expanded capacity of its plants at Kalwe-Thane and Gimigeria(Karnataka).
• It has an order book of Rs.580 Crore for Engineering & Machinery division as on 30 Sept 2009.
• It has hiked prices of alloy steel products by 5%-7% in October.
• The joint venture of the company with M/s Bekaert, Belgium (74% stake) for the manufacture of stainless steel wires has already commenced production in the month of July 2009. Mukand has 26% stake in 6000
Tonnes a year capacity, which is being further expanded to 12000 Tonnes/Year.
• There was sharp increase in Commodities prices in FY09, followed by slump in demand for finished products, which resulted in losses to the company. The company has shown good turn around after showing losses in
FY09. It is able to improve its PBIT margins in H1 FY10, compared to FY09.
Comment on Finances of the Company
• The company was incurring losses and was declared sick in FY 2003.
• It returned to profitability in 2004 and showed profits till FY 2008.
• It paid dividend in FY 2007 & 2008.
• The company ran into losses in FY2009 and had to skip dividend.
• It has reported profits in Q1 & Q2 FY 2010.
• Company is able to meet its interest costs out of current income from operations.
• The company’s Debt Equity Ratio as on 31 March 2009 was 0.8:1. The ratio had improved due to addition of Rs.12 Billion in Networth and Fixed Assets due to revaluation of land. Without revaluation, Debt-Equity Ratio is 2.73:1.
• Company plans to sell a part of the land at Deghe, Thane for Rs.700 Crore and utilize the proceeds to retire debt. A net realization of Rs.500 crore is assumed in FY2011..
• The Debt , which stood at Rs. 1471 Crore on 31 March 2009, is likely to be reduced by Rs.500 Crore.
• Its interest cost can be reduced by Rs.60 Crore due to the reduction of Debt by Rs.500 Crore. In FY2010, interest cost is estimated to be Rs.153 Crore.
• We expect the company to shown good results and return to dividend list in FY2011.
Note: In FY09, there was loss of Rs.22 Crore due to Forex Transaction. Tax Liability is likely to be Nil in FY10, as
Company has accumulated losses of last Year to set-off.
Peerset Comparison
Rs. Crore Mukand MUSCO Uttam Galva
FY 09 Total Sales 1949 1075 4372
FY 09 PBDIT ‐54 32 359
FY 09 Net ‐189 ‐19 106
H1 FY10 Total Sales 965 493 2176
H1 FY 10 PBDIT 135 32 208
H1 FY 10 Net 31 ‐3 51
Equity (FV 10) 73 32 120
H1 FY 10 PBDIT (%) 14 6.49 9.56
H1 FY 10 NPM (%) 3.21 ‐0.61 2.34
H1 FY 10 EPS
(Anlzd) 8.49 ‐1.88 8.50
CMP (Rs.) 61 52 118
PE X H1 EPS 7.18 13.88
Risks
• There is cyclicality in business. Company has suffered losses during down cycle.
• Production from company’s ore mines stopped during FY09, it has to acquire Iron ore from the market. The
production from this mine has not yet started. The ability of the management to acquire Iron Ore at
appropriate prices will impact margins of the company.
• Company’s new capacities will take some time, before they start yielding results.
• The company suffered Cash losses in FY09. It has tight Cash in hand situation.
• It is not a consistent dividend payer. During late 1990s, it became sick with the down turn in steel cycle. It
recovered by 2004-05. It paid dividend in FY2007 & FY 2008, again skipped dividend in FY2009 as it went
into losses.
Valuation & Recommendation: High Risk Long Term Investors may BUY.
Mukand Ltd is witnessing a turn around in performance in FY10, after dismal FY09. It is likely to report an EPS of
Rs.8/Share and cash EPS of Rs.16/Share in FY10. At CMP Rs. 61/Share, it trades at 7.6 PE and 3.8 Cash PE on FY
10 estimates. We expect company to reduce its Debt burden significantly in FY11, by selling a part of land. High risk
investors can BUY at CMP Rs.60, for a target of Rs.72 i.e. 9 PE and 4.5 Cash PE on FY 10 estimates. If Debt cost is
reduced, it can show an EPS of Rs. 15 in FY 2011. At CMP Rs.61, it trades at just 4 PE on FY 2011 estimates post
restructuring.
Derivatives Statistics
PCR December. 2009 OPEN INTEREST
SYMBOL PREV.WEEK
CURR.
WEEK %CHG PREV. WEEK CURR. WEEK %CHG
ALL INDEX 0.8649 0.859 -0.68 28781056 26690264 -7.26
ALL STOCK 0.1526 0.1777 16.45 1369208140 1296697185 -5.30
NIFTY 0.8649 0.8591 -0.67 27458756 24984814 -9.01
RELIANCE 0.1669 0.1816 8.81 10536600 10078800 -4.34
SBIN 0.1954 0.1693 -13.40 3375372 3459456 2.49
ICICIBANK 0.1276 0.1923 50.71 12197850 9697450 -20.50
TATASTEEL 0.1606 0.1858 15.69 14014052 11873324 -15.30
BHARTIARTL 0.2603 0.2903 11.53 16780500 15346500 -8.55
DLF 0.1376 0.1784 29.65 10465600 11361600 8.56
SUZLON 0.1028 0.132 28.40 53730000 50487000 -6.04
UNITECH 0.1036 0.1558 50.39 56349000 59665500 5.89
IFCI 0.0799 0.1042 30.41 89721680 81944120 -8.67
RCOM 0.1276 0.1371 7.45 23067800 21071400 -8.65
INFOSYSTCH 0.3174 0.6519 105.40 2403800 2638800 9.78
SAIL 0.2962 0.3705 25.08 9069300 6836400 -24.60
TATAMOTORS 0.1842 0.248 34.64 14359050 11622050 -19.10
RNRL 0.0330 0.039 18.18 30696384 28246824 -7.98
IDBI 0.0540 0.0738 36.67 14704800 13833600 -5.92
IDFC 0.0389 0.0777 99.74 14269150 14929950 4.63
HINDALCO 0.1943 0.2408 23.93 24056084 20703430 -13.90
HDIL 0.0742 0.0882 18.87 6390918 6309648 -1.27
HINDUNILVR 0.1215 0.1834 50.95 13081000 7846000 -40.00
ORCHIDCHEM 0.0174 0.0573 229.30 7652400 7274400 -4.94
IDEA 0.2050 0.2483 21.12 28139400 31986900 13.67
JPASSOCIAT 0.0724 0.1267 75.00 10148625 13740320 35.39
ONGC 0.0841 0.0604 -28.20 1662525 1377225 -17.20
NTPC 0.0712 0.1235 73.46 14036750 11285625 -19.60
JINDALSTEL 0.0541 0.0528 -2.40 7107840 6360960 -10.50
BALRAMCHIN 0.0326 0.0416 27.61 18237600 18703200 2.55
ESSAROIL 0.0039 0.0063 61.54 18172440 18183736 0.06
ISPATIND 0.0589 0.0989 67.91 74774700 71575050 -4.28
LT 0.1205 0.2528 109.80 3799400 3639600 -4.21
RANBAXY 0.1207 0.1337 10.77 3584000 3040800 -15.20
Nifty Stock Level (Cash)
SCRIPS LTP R1 R2 S1 S2 trend
ABB LTD. 762.70 770.00 778.00 751.00 739.00 Uptrend
A.C.C. 861.65 885.00 908.00 828.00 793.00 Uptrend
AMBUJACEM 98.30 101.00 104.00 96.00 93.00 Uptrend
AXISBANK 934.3 993.00 1053.00 895.00 856.00 Downtrend
BHARTIARTL 317.85 337.00 357.00 299.00 280.00 Downtrend
BHEL 2318.70 2399.00 2480.00 2269.00 2219.00 Downtrend
BHARAT PETRO 595.40 623.00 651.00 579.00 562.00 Downtrend
CAIRN 270.05 274.00 278.00 266.00 262.00 Uptrend
CIPLA 356.55 368.00 379.00 342.00 326.00 Uptrend
DLF 357.40 379.00 400.00 346.00 333.00 Downtrend
GAIL 401.50 420.00 438.00 390.00 377.00 Downtrend
GRASIM IND. 2402.00 2478.00 2554.00 2349.00 2295.00 Uptrend
HCL TECHNOLO 365.30 392.00 419.00 336.00 306.00 Uptrend
HDFC BANK 1664.10 1761.00 1858.00 1607.00 1549.00 Downtrend
HERO HONDA 1672.9 1701.00 1730.00 1642.00 1611.00 Downtrend
HINDALCO 142.85 147.00 152.00 139.00 135.00 Uptrend
HINDUNILVR 263.35 271.00 280.00 258.00 253.00 Downtrend
ICICI BANK 809.35 851.00 893.00 786.00 762.00 Downtrend
IDEA 56.95 60.00 63.00 54.00 50.00 Downtrend
IDFC 153.2 473.00 510.00 416.00 395.00 Downtrend
INFOSYS TECH 2525.95 2582.00 2638.00 2460.00 2393.00 Uptrend
ITC 247 253.00 260.00 243.00 239.00 Downtrend
JINDL STL&PO 707.65 735.00 762.00 693.00 677.00 Downtrend
JPASSOCIATEQ 147.40 154.00 161.00 142.00 136.00 Downtrend
LT EQ 1650.05 1700.00 1750.00 1622.00 1593.00 Downtrend
MAH & MAH 1054.65 1084.00 1113.00 1017.00 978.00 Uptrend
MARUTI 1548.80 1605.00 1662.00 1513.00 1477.00 Downtrend
NTPC EQ 207.30 210.00 213.00 205.00 202.00 Downtrend
ONGC CORP. 1185.25 1209.00 1233.00 1171.00 1156.00 Downtrend
PNB 887.7 918.00 949.00 864.00 840.00 Downtrend
POWERGRID 104.55 106.00 108.00 103.00 101.00 Downtrend
RANBAXY LAB. 530.35 545.00 560.00 505.00 479.00 Uptrend
RCOM 172 182.00 193.00 166.00 160.00 Downtrend
REL.CAPITAL 818.7 847.00 876.00 803.00 787.00 Downtrend
RELIANCE 1007.65 1060.00 1113.00 980.00 952.00 Downtrend
RELINFRA 1029 1080.00 1131.00 983.00 936.00 Downtrend
RPOWER 143.8 149.00 154.00 140.00 135.00 Downtrend
SAIL 213.1 219.00 225.00 207.00 200.00 Uptrend
STATE BANK 2145.35 2246.00 2347.00 2085.00 2024.00 Downtrend
SIEMENS 553.55 571.00 590.00 537.00 521.00 Uptrend
STEEL AUTHOR 213.1 219.00 225.00 207.00 200.00 Uptrend
STER EQ 818 846.00 875.00 795.00 772.00 Downtrend
SUN PHARMA. 1504.75 1538.00 1571.00 1457.00 1408.00 Uptrend
SUZLON 82.25 86.00 90.00 78.00 73.00 Downtrend
TATAMOTORSEQ 733.95 755.00 777.00 698.00 662.00 Uptrend
TATA POWER 1318.5 1360.00 1401.00 1293.00 1266.00 Downtrend
TATASTEEL 563.25 578.00 593.00 544.00 524.00 Uptrend
TCS EQ 727.5 741.00 755.00 704.00 681.00 Uptrend
UNITECH LTD 80.2 86.00 92.00 77.00 73.00 Downtrend
WIPRO 674.7 698.00 723.00 647.00 620.00 Uptrend
Updates :
BSE revises transaction charges in derivatives segment
The Bombay Stock Exchange (BSE) is introducing revised transaction charges in the equity derivatives segment with effect from Tuesday, December 29, 2009. The targeted reduction in effective spreads and impact costs, along with the innovative fee structure, can potentially result in substantially lower transaction costs for all market participants.
This new pricing scheme is designed to improve depth and liquidity in the BSE equity derivatives segment. It will help shrink quoted spreads and thus reduce impact cost. The proposed structure is a transparent and equitable way to attract liquidity to the BSE platform.
When combined with mid-month expiration design, the BSE index and single stock futures and options markets now provide a whole new range of hedging, investment and trading opportunities to Exchange members and their retail and institutional clients.
The following transaction charges will apply with effect from Tuesday, December 29, 2009 in BSE’s derivatives segment:
Futures & Options Transaction charges applicable for Passive orders inclusive of IPF and TGF charges Transaction charges applicable for Active orders inclusive of IPF and TGF charges
Stock Futures and Index futures (on execution) (Rs.1 per lakh) # Rs.1.5 per lakh
Stock Options and Index options (on execution) (Rs.15 per lakh)## Rs.20 per lakh
IPF: Investor Protection Fund TGF: Trade Guarantee Fund
# (Rs 1 per lakh) will mean that the Exchange will pay Rs. 1 per lakh of transaction value to the member who has placed passive order in the order book which has matched in Stock Futures or Index Futures.
## (Rs. 15 per lakh) will mean that the Exchange will pay Rs. 15 per lakh of the total premium paid to the member who has placed passive order in the order book which has matched in Stock Options or Index Options.
The above transaction charges will be applicable uniformly across all valid orders executed in the Exchange’s Equity Derivatives segment. Executed orders will be identified as passive or active on the basis of their respective time stamps assigned by the BSE system. As per the Exchange trading system design, two orders cannot have the same time stamp.
Passive Orders: Passive orders are defined as the orders that already exist in the order book at the time of matching (order taking place).
Active Orders: Active orders are defined as the orders that are matched against the orders already existing in the order book at the time of matching (trade taking place).
Disclaimer: The recommendation made herein does not constitute an offer to sell or a solicitation to buy any of the securities mentioned. Readers using the information contained herein are solely responsible for their actions. The information and views contained herein are believed to be reliable but no responsibility or liability is accepted for errors of fact or opinion. Integrity, its directors, employees and associates may or may not have trading or investment positions in the securities mentioned herein.
www.integrity.org.in
Today market may open flat as mixed and flat Asian cues.
SGX Nifty :
Hangseng : -61.42 21114.46
Nikkei : +56.38 10198.43
SSE : -19.30 3094.59
STI : 2800.18 -2.41
Stocks in News :
RIL – RNRL update
Arguments in RIL-RNRL D6 gas case conclude at SC (Supreme Court)
Solicitor General Says:
Government property being used for mergers-demergers
EGoM (Empowered Group of Minister) decided pricing, allocation can't be challenged
Govt has been subject to trial by ambush
Surprised that RIL claimed RNRL allocated gas by EGoM
RIL no more than an agent for selling gas
SEBI asks govt to mull action against RIL for allegedly routing funds to dummy cos for buying large quantity of its shares in 2000: PTI
MRF : FY09 results today
IFCI : NSE F&O curb
Drreddy : KCR warns that illegal lands acquired by Dr.Reddy and IMAX will be confiscated once Telengan is formed.
REC : FPO to hit markets in January-February 2010: Power Ministry
ONGC : declares 2 gas finds, Rs 18 per share dividend.
Bright Brothers : Open offer at Rs 50 (CMP 43)
Golden Tobacco board meet to consider development of properties.
Indiabulls Financials, Societe General sever ties for life insurance JV – FE
Petroleum Ministry has asked Finance Ministry to give infra status to E&P, also extend subsidy of LPG and Kerosene beyond March 2010 – FE
Welspun to merge 3 investment firms to unlock value, raise funds – Mint
Prime Focus earned $18 million for providing visual effects in Avatar – BS
Tata Communications ADR up 6.4%
Weekly Technical View:
Now the next crucial support is at 4940-4950 levels. Consistently close below these levels will change the market sentiments and we can expect Nifty to come till 4916 and more bold upto 4811.The weekly resistance for the Niffty is at 5040-5065 levels. Consolidation with down trend still persists. Stay cautious till breakouts either.
After making Doji candlestick previous week, Nifty showed selling pressure, which shows Bears are having control at the moment. However, Nifty is still trading above its important support at 4940 levels. As long as 4940 levels are intact, volatility and range bound scenario in 4940-5050 may take place. On breakdown of 4940 levels, selling pressure may accelerate. On short term basis, Nifty is trading below 4990 levels, which shows short term down trend is on.
For trading during the coming trading sessions, trend deciding level is 4990. If Nifty shows strength above 4990 levels then we may see rally to 5050/5090/5150.If Nifty doesn’t sustain above 4990 then decline to /4950/4850/4790 may be seen.
Recommendation for Monday- Intra Day Trading
Scrip (LTP) Action At Price For Target of Stop Loss Duration
MPHASIS (725.60) BUY ABOVE 726 742 716 1 day
DLF (357.40) SELL BELOW 357 350 363 1 day
Positional Views :
Buy:( Symbol /sl / Target / Specifications)
Sintex 238 258
Strtech 315 Abv 322
Essaroil 138 152 / 158 Abv 144
Jaysreetea 332 355
Thermax 573 598
Amarajabat 156 177 Buy at 161-163
MSKProj 94 101 / 105
HDFC* 2517 2676 Bounceback expected, buy abv 2618
HDFCBank* 1615 Bounce back exp
ICICIBank* Watch
IDFC 144 Buy at dips
ITC 239 Buy at dips
Sell :
IDBI 128 118
Jisljaleqs 848 780
Mcdowell-n 1260 1171
HDIL 344 333 / 320 Below 332
CMC 1340 1287 / 1260 Below 1287
IOC 303 291 Below 297
Dabur 166 157
DLF 366 351
Gail 405 384 Below 397
Grasim Range 2440-2370
Jpassociat 151 137 Sell below 144, Po
LT 1572 Sell 1640
Sesagoa 368 351 Below 365
Technical View: NIFTY Future
In last week, Nifty December Future opened at 5105, touched the high of 5167.50 and then due to profit taking at higher levels tested the low of 4972.10 & closed at 4986.80. The main point to be noted is that Nifty future is making lower bottoms & lower tops. Even nifty future failed to cross the high of previous week. Nifty future is broadly range bound in 5150-4950 levels. If Nifty future decline below 4950 levels then selling pressure till 4870 -4820-4770 levels may also be seen.
Trading strategy for Medium term Traders : On Medium term basis, Nifty has resistance zone of 5180-5200.
Medium term support zone is 4750-4800. Selling on rallies may be considered around 5050-5100 level with the short term SL of 5150 for the target of 4980-4920-4850.
Trading strategy for Short term Traders: Short term trend of Nifty is range bound & selling on rallies may be considered around 5035-5070 level with the SL of 5110 for the target of 4950-4920-4880. If Nifty trades below 4950 in coming few sessions, then it may test the levels of 4920-4880-4850.
Market Indices
SECTORAL INDICES
INDICES 11-Dec-09 18-Dec-09 Change
(%)
Difference
BSE
Sensex 17119.03 16719.83 -2.33% -399.2
Bankex 10106.17 9542.94 -5.57% -563.23
IT Index 4900.47 5046.65 2.98% 146.18
Metal Index 16419.26 16226.29 -1.18% -192.97
FMCG Index 2848.82 2755.94 -3.26% -92.88
Cap. Goods Index 13877.95 13686.33 -1.38% -191.62
Realty Index 3922.62 3708.76 -5.45% -213.86
Consumer Durables Index 3549.43 3530.78 -0.53% -18.65
Healthcare Index 4932.29 5117.57 3.76% 185.28
PSU Index 9306.83 9083.13 -2.40% -223.7
Mid-Cap Index 6574.49 6470.58 -1.58% -103.91
NSE
S&P CNX Nifty 5117.30 4987.70 -2.53% -129.60
Bank Nifty 9097.20 8599.95 -5.47% -497.25
CNX IT Index 5521.05 5682.80 2.93% 161.75
S&P CNX 500 4242.90 4153.05 -2.12% -89.85
GLOBAL INDICES 11-Dec-09 18-Dec-09 Change
(%)
Difference
US Market
NASDAQ 2190.31 2211.69 0.98 21.38
Dow Jones 10471.50 10328.89 -1.36 -142.61
S & P 500 1106.41 1102.47 -0.36 -3.94
European Market
FTSE 100 5261.57 5196.81 -1.23 -64.76
CAC 40 3803.72 3794.44 -0.24 -9.28
Asian Market*
Nikkei 10107.87 10142.05 0.34 34.18
Strait Times 2800.75 2802.59 0.07 1.84
Hang seng 21902.11 21175.88 -3.32 -726.23
Shanghai Comp. 3247.32 3113.89 -4.11 -133.43
Institutional Activity (Equity)
(Rs. In Cr)
Day Wise Purchase Sale Net
FII Activity
Friday 2167.80 1825.70 342.10
Monday 1830.10 1655.60 174.50
Tuesday 2295.40 2181.40 114.00
Wednesday 2215.10 2354.40 -139.30
Thursday 2534.60 2045.50 489.10
Friday (provisional) 2227.95 2434.80 -206.85
Total 13,270.95 12,497.40 773.55
DII Activity
Friday 1523.92 1531.09 -7.17
Monday 1212.42 1103.50 108.92
Tuesday 1273.19 1234.50 38.69
Wednesday 1381.57 1106.65 274.92
Thursday 1225.62 1092.34 133.28
Friday (provisional) 1391.31 1060.36 330.95
Total 8008.03 7128.44 879.59
Weekly Sectoral Roundup
Out performer Under performer Neutral
HEALTHCARE (+3.76%) BANK (-5.57%)
IT (+2.98%) REALTY (-5.45%)
AUTO (+0.21%) OIL&GAS (-4.08%)
CAPITALGOODS (-1.38%) FMCG (-3.26%)
METAL (-1.18%)
Weekly Top Gainers
Name close Last Week close %change
DR.REDDY 1207.05 1103.05 9.43
RANBAXY LAB. 530.35 497.75 6.55
A.C.C. 861.65 816.75 5.50
ASIAN PAINT 1800.05 1707.35 5.43
HCL TECHNOLO 365.30 347.50 5.12
Weekly Top Losers
Name close Last Week close %change
ICSA 166.10 184.80 ‐10.12
ANDHRA BANK 102.45 113.85 ‐10.01
MCDOWELL 1227.35 1358.90 ‐9.68
LITL 536.40 586.90 ‐8.60
BALRAMPUR C. 132.80 144.80 ‐8.29
Outlook for the Week
Nifty opened the week on a negative note at 5117.45 levels and after making initial high at 5156.70, showed selling pressure during the week. Nifty made low of 4979.05 levels and closed the week in red at 4987.70 levels with 2.53% loss. Volumes were at par with previous session. After making Doji candlestick previous week, Nifty showed selling pressure, which shows Bears are having control at the moment. However, Nifty is still trading above its important support at 4940 levels. As long as 4940 levels is intact, volatility and range bound scenario in 4940-5050 may take place. On breakdown of 4940 levels, selling
pressure may accelerate. On short term basis, Nifty is trading below 4990 levels, which shows short term down trend is on.
For trading during the coming trading sessions, trend deciding level is 4990. If Nifty shows strength above 4990 levels then we may see rally to 5050/5090/5150. If Nifty doesn’t sustain above 4990 then decline to 4950/4850/4790 may be seen.
NIFTY Futures View :
Nifty December Future opened at 5105, touched the high of 5167.50 and then due to profit taking at higher levels tested the low of 4972.10 & closed at 4986.80.
The main point to be noted is that Nifty future is making lower bottoms & lower tops. Even nifty future failed to cross the high of previous week. Nifty future is broadly range bound in 5150-4950 levels. If Nifty future decline below 4950 levels then selling pressure till 4870 -4820-4770 levels may also be seen.
Trading strategy for Medium term Traders: On
Medium term basis, Nifty has resistance zone of 5165-5200. Medium term support zone is 4700-4800.
Selling on rallies may be considered around 5050-5100 level with the short term SL of 5150 for the target of 4980-4920-4850.
Trading strategy for Short term Traders: Short term trend of Nifty is range bound & selling on rallies may be considered around 5035-5070 level with the SL of 5110 for the target of 4950-4920-4880. If Nifty trades below 4950 in coming few sessions, then it may test the levels of 4920-4880-4850.
Note : On a regular daily basis confirm the bias of the market which may give pull backs depend upon the Global markets.
Corporate Updates:
• IVRCL to develop terminal in Pardip Refinery worth Rs30bn
• Gammon India wins 220KV transmission line order from
Algeria worth Rs$22.5mn
• Pratibha Industries wins Rs1.04bn order from Delhi..
• Mcnally Bharat wins order worth Rs3.3bn from SAIL
• KEC International wins six orders worth Rs5.50bn..
• Pratibha Industries wins order worth Rs1.3bn..
• HCC wins order worth Rs3.18bn from Kolkata
News:
• ONGC to pay dividend at Rs18 per share
• Supreme Court today said it will give its verdict on the gas
dispute between Reliance Industries and Reliance Natural
Resources at a later date after both the parties concluded
their oral arguments.
• Essar Oil won three coal-bed methane blocks after an Indian
government panel rejected bids by a group led by Deep
Industries - PTI reported
Fundamental Calls:(Source)
Lloyd Electric & Engineering Ltd. : Buy
Company background
Lloyd Electric and Engineering Ltd (LEEL) is engaged in the business of condenser coils and evaporator coils. The products of the company are used as original equipment in window, package, automotive and split air Conditioners.
It also supplies to OEMs such as Samsung, LG Electronics, Carrier, Haier, Voltas, Blue Star and Indian Railways, etc. The company has five plants, three domestic and two international:-
1. Bhiwadi Distt. Alwar,Rajasthan.
2. Sirmour, Nahan Himachal Pradesh.
3. Selakui Dehradun,Uttranchal.
4. Radotin Vrazaska, Prague, Chez republic (Owned by Subsidiary).
5. Ras Al Khaimah United Arab Emirates (Owned by Subsidiary).
Installed Capacity
Type Capacity
Condensing & Evaporator Coil Set (Tonne) 12,25,000
Fan coil units /Cooling Unit 10,000
All types of air conditioners up to 15 ton capacity 4,02,000
Sheet Metal (for mfg. coil) 3,00,000
Parts of air conditioner/cooling 10,000
Investment Rationale
Sales on the re-bound: - The Company had reported a drop in sales in FY09 over FY08. The drop was nearly
12%. This was primarily due to the melt down global market. In H1FY10; the company has reported an increase
in sales by 12%. Its PAT has also increased by 10% over HIFY09.Going forward, we expect the company to post
increase in revenue for H2FY10 too. The company would be able to maintain its PAT for H2FY10 too.
Demand for products also picking up: - The year 2008-09 was a challenging year with global recession casting its shadow on the Indian economy, resulting in sharp contraction of demand, pressures on liquidity and adverse consumer sentiments. India remains a growth economy with demand for consumer durable robust.
Increase in Urbanization across the cities would result in increase in demand for Luxury goods such as Airconditioning.
Demand for AC from transport segment is also picking up. The analysis sales for the company for products indicates that the company had witnessed drop in volume and price for its products in FY09 over FY08, however, we believe that the situation is reversing as the company has reported better sales and profits in the last two quarters.
Stabilizing Operating Profits: - The Company has reported an improvement of 126 Bps in PBDIT margins QoQ and 240 Bps YoY for the Q2FY10. We expect the company to maintain these margins in the coming quarters.
Growing organically and inorganically: -In FY09, the company acquired Luvata Czech s.r.o., a manufacturer of customized finned pack heat exchangers coils in Prague, Czech Republic through its special purpose vehicle (SPV) namely Lloyd Coils Europe s.r.o, a subsidiary company. The company has recently acquired the assets of
Janka Radotin, manufacturer of the products in the field of Air Handling Units, major components of HVAC system (Heating, Venting, and Air Conditioning systems). It is well positioned to cater to European markets and significant upside in its top line and bottom-line can be expected in the coming years.
Lloyd Coils Europe, a subsidiary of LEEL, has reported losses in tunes of Rs 19 Cr in FY09. The global economic conditions last year resulted in tough economic conditions for manufacturers across the globe. The company had acquired Luvata Czech s.r.o. through debt and GDR route and the financing cost resulted the company in reporting a loss of Rs 19cr (TCZK 7.44 Cr), although the operating loss for the company was at Rs
1.04 Cr. (TCZK 44 Lakh). We expect the subsidiary to do well in the current financial year and limit the losses in bottom-line.
The company had not given dividend last year on account of slowdown. But with improving profitability the company can re-commence dividend payment to its shareholders. We have projected that the company can pay 10% dividend to its shareholders in FY10. However, the quantum of dividend would be influenced by losses of subsidiaries and acquisitions.
The current order-book for the company is at Rs 400-500 Cr that is executable over the next twelve months.
Peer-set Comparison
FY09(Rs Cr) Blue Star Hitachi Home Lloyd Electric
Net Sales 2552.29 466.64 585.32
Total Income 2574.03 477.13 587.9
Total Expenditure 2296.38 439.74 537.81
PBIDT 277.65 37.39 50.09
APAT 180.29 21.07 20.37
EPS 20.04 9.18 6.57
Equity (FV) 17.99(2) 22.96(10) 31(10)
PBIDTM (%) 10.88 8.01 8.56
PATM (%) 7.06 4.52 3.48
Cmp (Rs) 359.2 136.3 61.7
P.E(x) 17.92 14.85 9.39
The peer set is not strictly comparable
Risk and Concern
The company’s raw material cost constitutes a high percentage of its expenditure. Copper is the chief raw material for the company. Any increase in raw material cost would adversely affect its profitability.
Sharp increase in interest rates, dwindling demand for various products impacting inventory levels and higher credit risks for the company also exist.
Economic condition and its consequent impact on customer’s demand can affect Lloyd Electric’s sales and profitability.
The company has been growing inorganically and acquired assets recently too. We have considered that the subsidiary of the company would be limiting its losses in this financial year. But incase this does not happen our projections can be skewed downwards.
Valuation and Recommendation
The company is rebounding from a tepid FY09 and has posted good results in H1FY10. The company reported improvement in sales by 12% in H1FY10 versus HIFY09. We expect the company to report good result in the coming quarters that would be a marked improvement over H2FY09. We have projected that the company would report an EPS of 11.88 for FY10. At CMP the scrip is trading at earnings multiple of 5.22x.We have not taken into account the
losses at company’s subsidiary, incase the subsidiary accrues similar losses the company’s bottom-line can be skewed downwards. We recommend investors to buy the stock at Rs 60 with a medium term target of Rs 70. However, due to market volatility a potential downside of 10-15% cannot be ruled out.
Mumbai based Mukand was started in 1937 by prominent industrialist of Pre-Independent era, Late Sh. Jamlal Bajaj.
He founded the Bajaj group of companies. The group now has 24 companies. Besides Bajaj Auto Ltd, the other major companies in the group include Bajaj Finserv Ltd, Bajaj Electricals Ltd , Mukand Engineers Ltd and Bajaj Hindustan Ltd (Bajaj Hindustan has separated from the group).
The major activities of the company include:
Steel Alloys
It manufactures a wide variety of steel and steel alloys like Carbon alloy steel, free-cutting steel, semi free-cutting steel, cold heading quality steel including boron steel, austenitic, ferritic and martens tic stainless steel, spring steel including chrome vanadium steel, high carbon steel, electrode quality steel, boiler quality steel etc.
It products meet various international specifications like Japanese (JIS), German (DIN) American (AISI/SAE) and Indian standards (BIS) etc.
Its products are used by a host of industries like surgical instruments, stainless steel for industrial applications, in passenger cars and commercial vehicles, seamless tubes, consumer durables, bearings, making springs for railway freight cars, components for textile machinery, components for military hardware etc.
Engineering & Machinery (E&M)
It makes engineering products like Electric Overhead Travelling (EOT) cranes, Electrical Level Luffing crane, Gantry crane, container handling crane. Bulk Material Handling Equipment, Process Plant equipments etc. used in Steel plants, Cement plants, Aluminum plants, Copper plants, Power plants, Defense, Textile etc.
Infrastructure & Trunkey Projects
Company is also constructing roads, highways, building civil, structural and mechanical work at steel plants, power plants, service structure for assembly of augmented satellite launching vehicle (ASLV) for Indian Space Research Organization (ISRO) etc.
The sales break-up of the company stands as:
Investment Rationale
• After sharp slow down during the H2 FY09 and early part of H1 FY10, there is good revival in global economies, from the mid of FY10.
• Indian economy is also back on its long term growth trajectory.
• India is emerging as a major hub for a host of global industries like Automobile, which would create demand for steel.
• The Govt is spending good funds for infrastructure development of the country, Roads, City Transportation, Power, Oil & Gas etc.
• Indian railways and Defense are also spending huge amount on hardware.
• After slow down in past 1 years, reality sector is also witnessing demand revival.
• Besides, it also provides Engineering services and products for diverse applications.
• Infrastructure division has very small share in overall business, good order inflows can be expected as Govt is giving more orders for infra projects.
• The company in JV with Vini Iron has been allotted a Coal block of 10.05 Million Tonnes. Mukand has 48.8% stake in JV Mukand Vini Minerals (P) Ltd.
• The company has expanded capacity of its plants at Kalwe-Thane and Gimigeria(Karnataka).
• It has an order book of Rs.580 Crore for Engineering & Machinery division as on 30 Sept 2009.
• It has hiked prices of alloy steel products by 5%-7% in October.
• The joint venture of the company with M/s Bekaert, Belgium (74% stake) for the manufacture of stainless steel wires has already commenced production in the month of July 2009. Mukand has 26% stake in 6000
Tonnes a year capacity, which is being further expanded to 12000 Tonnes/Year.
• There was sharp increase in Commodities prices in FY09, followed by slump in demand for finished products, which resulted in losses to the company. The company has shown good turn around after showing losses in
FY09. It is able to improve its PBIT margins in H1 FY10, compared to FY09.
Comment on Finances of the Company
• The company was incurring losses and was declared sick in FY 2003.
• It returned to profitability in 2004 and showed profits till FY 2008.
• It paid dividend in FY 2007 & 2008.
• The company ran into losses in FY2009 and had to skip dividend.
• It has reported profits in Q1 & Q2 FY 2010.
• Company is able to meet its interest costs out of current income from operations.
• The company’s Debt Equity Ratio as on 31 March 2009 was 0.8:1. The ratio had improved due to addition of Rs.12 Billion in Networth and Fixed Assets due to revaluation of land. Without revaluation, Debt-Equity Ratio is 2.73:1.
• Company plans to sell a part of the land at Deghe, Thane for Rs.700 Crore and utilize the proceeds to retire debt. A net realization of Rs.500 crore is assumed in FY2011..
• The Debt , which stood at Rs. 1471 Crore on 31 March 2009, is likely to be reduced by Rs.500 Crore.
• Its interest cost can be reduced by Rs.60 Crore due to the reduction of Debt by Rs.500 Crore. In FY2010, interest cost is estimated to be Rs.153 Crore.
• We expect the company to shown good results and return to dividend list in FY2011.
Note: In FY09, there was loss of Rs.22 Crore due to Forex Transaction. Tax Liability is likely to be Nil in FY10, as
Company has accumulated losses of last Year to set-off.
Peerset Comparison
Rs. Crore Mukand MUSCO Uttam Galva
FY 09 Total Sales 1949 1075 4372
FY 09 PBDIT ‐54 32 359
FY 09 Net ‐189 ‐19 106
H1 FY10 Total Sales 965 493 2176
H1 FY 10 PBDIT 135 32 208
H1 FY 10 Net 31 ‐3 51
Equity (FV 10) 73 32 120
H1 FY 10 PBDIT (%) 14 6.49 9.56
H1 FY 10 NPM (%) 3.21 ‐0.61 2.34
H1 FY 10 EPS
(Anlzd) 8.49 ‐1.88 8.50
CMP (Rs.) 61 52 118
PE X H1 EPS 7.18 13.88
Risks
• There is cyclicality in business. Company has suffered losses during down cycle.
• Production from company’s ore mines stopped during FY09, it has to acquire Iron ore from the market. The
production from this mine has not yet started. The ability of the management to acquire Iron Ore at
appropriate prices will impact margins of the company.
• Company’s new capacities will take some time, before they start yielding results.
• The company suffered Cash losses in FY09. It has tight Cash in hand situation.
• It is not a consistent dividend payer. During late 1990s, it became sick with the down turn in steel cycle. It
recovered by 2004-05. It paid dividend in FY2007 & FY 2008, again skipped dividend in FY2009 as it went
into losses.
Valuation & Recommendation: High Risk Long Term Investors may BUY.
Mukand Ltd is witnessing a turn around in performance in FY10, after dismal FY09. It is likely to report an EPS of
Rs.8/Share and cash EPS of Rs.16/Share in FY10. At CMP Rs. 61/Share, it trades at 7.6 PE and 3.8 Cash PE on FY
10 estimates. We expect company to reduce its Debt burden significantly in FY11, by selling a part of land. High risk
investors can BUY at CMP Rs.60, for a target of Rs.72 i.e. 9 PE and 4.5 Cash PE on FY 10 estimates. If Debt cost is
reduced, it can show an EPS of Rs. 15 in FY 2011. At CMP Rs.61, it trades at just 4 PE on FY 2011 estimates post
restructuring.
Derivatives Statistics
PCR December. 2009 OPEN INTEREST
SYMBOL PREV.WEEK
CURR.
WEEK %CHG PREV. WEEK CURR. WEEK %CHG
ALL INDEX 0.8649 0.859 -0.68 28781056 26690264 -7.26
ALL STOCK 0.1526 0.1777 16.45 1369208140 1296697185 -5.30
NIFTY 0.8649 0.8591 -0.67 27458756 24984814 -9.01
RELIANCE 0.1669 0.1816 8.81 10536600 10078800 -4.34
SBIN 0.1954 0.1693 -13.40 3375372 3459456 2.49
ICICIBANK 0.1276 0.1923 50.71 12197850 9697450 -20.50
TATASTEEL 0.1606 0.1858 15.69 14014052 11873324 -15.30
BHARTIARTL 0.2603 0.2903 11.53 16780500 15346500 -8.55
DLF 0.1376 0.1784 29.65 10465600 11361600 8.56
SUZLON 0.1028 0.132 28.40 53730000 50487000 -6.04
UNITECH 0.1036 0.1558 50.39 56349000 59665500 5.89
IFCI 0.0799 0.1042 30.41 89721680 81944120 -8.67
RCOM 0.1276 0.1371 7.45 23067800 21071400 -8.65
INFOSYSTCH 0.3174 0.6519 105.40 2403800 2638800 9.78
SAIL 0.2962 0.3705 25.08 9069300 6836400 -24.60
TATAMOTORS 0.1842 0.248 34.64 14359050 11622050 -19.10
RNRL 0.0330 0.039 18.18 30696384 28246824 -7.98
IDBI 0.0540 0.0738 36.67 14704800 13833600 -5.92
IDFC 0.0389 0.0777 99.74 14269150 14929950 4.63
HINDALCO 0.1943 0.2408 23.93 24056084 20703430 -13.90
HDIL 0.0742 0.0882 18.87 6390918 6309648 -1.27
HINDUNILVR 0.1215 0.1834 50.95 13081000 7846000 -40.00
ORCHIDCHEM 0.0174 0.0573 229.30 7652400 7274400 -4.94
IDEA 0.2050 0.2483 21.12 28139400 31986900 13.67
JPASSOCIAT 0.0724 0.1267 75.00 10148625 13740320 35.39
ONGC 0.0841 0.0604 -28.20 1662525 1377225 -17.20
NTPC 0.0712 0.1235 73.46 14036750 11285625 -19.60
JINDALSTEL 0.0541 0.0528 -2.40 7107840 6360960 -10.50
BALRAMCHIN 0.0326 0.0416 27.61 18237600 18703200 2.55
ESSAROIL 0.0039 0.0063 61.54 18172440 18183736 0.06
ISPATIND 0.0589 0.0989 67.91 74774700 71575050 -4.28
LT 0.1205 0.2528 109.80 3799400 3639600 -4.21
RANBAXY 0.1207 0.1337 10.77 3584000 3040800 -15.20
Nifty Stock Level (Cash)
SCRIPS LTP R1 R2 S1 S2 trend
ABB LTD. 762.70 770.00 778.00 751.00 739.00 Uptrend
A.C.C. 861.65 885.00 908.00 828.00 793.00 Uptrend
AMBUJACEM 98.30 101.00 104.00 96.00 93.00 Uptrend
AXISBANK 934.3 993.00 1053.00 895.00 856.00 Downtrend
BHARTIARTL 317.85 337.00 357.00 299.00 280.00 Downtrend
BHEL 2318.70 2399.00 2480.00 2269.00 2219.00 Downtrend
BHARAT PETRO 595.40 623.00 651.00 579.00 562.00 Downtrend
CAIRN 270.05 274.00 278.00 266.00 262.00 Uptrend
CIPLA 356.55 368.00 379.00 342.00 326.00 Uptrend
DLF 357.40 379.00 400.00 346.00 333.00 Downtrend
GAIL 401.50 420.00 438.00 390.00 377.00 Downtrend
GRASIM IND. 2402.00 2478.00 2554.00 2349.00 2295.00 Uptrend
HCL TECHNOLO 365.30 392.00 419.00 336.00 306.00 Uptrend
HDFC BANK 1664.10 1761.00 1858.00 1607.00 1549.00 Downtrend
HERO HONDA 1672.9 1701.00 1730.00 1642.00 1611.00 Downtrend
HINDALCO 142.85 147.00 152.00 139.00 135.00 Uptrend
HINDUNILVR 263.35 271.00 280.00 258.00 253.00 Downtrend
ICICI BANK 809.35 851.00 893.00 786.00 762.00 Downtrend
IDEA 56.95 60.00 63.00 54.00 50.00 Downtrend
IDFC 153.2 473.00 510.00 416.00 395.00 Downtrend
INFOSYS TECH 2525.95 2582.00 2638.00 2460.00 2393.00 Uptrend
ITC 247 253.00 260.00 243.00 239.00 Downtrend
JINDL STL&PO 707.65 735.00 762.00 693.00 677.00 Downtrend
JPASSOCIATEQ 147.40 154.00 161.00 142.00 136.00 Downtrend
LT EQ 1650.05 1700.00 1750.00 1622.00 1593.00 Downtrend
MAH & MAH 1054.65 1084.00 1113.00 1017.00 978.00 Uptrend
MARUTI 1548.80 1605.00 1662.00 1513.00 1477.00 Downtrend
NTPC EQ 207.30 210.00 213.00 205.00 202.00 Downtrend
ONGC CORP. 1185.25 1209.00 1233.00 1171.00 1156.00 Downtrend
PNB 887.7 918.00 949.00 864.00 840.00 Downtrend
POWERGRID 104.55 106.00 108.00 103.00 101.00 Downtrend
RANBAXY LAB. 530.35 545.00 560.00 505.00 479.00 Uptrend
RCOM 172 182.00 193.00 166.00 160.00 Downtrend
REL.CAPITAL 818.7 847.00 876.00 803.00 787.00 Downtrend
RELIANCE 1007.65 1060.00 1113.00 980.00 952.00 Downtrend
RELINFRA 1029 1080.00 1131.00 983.00 936.00 Downtrend
RPOWER 143.8 149.00 154.00 140.00 135.00 Downtrend
SAIL 213.1 219.00 225.00 207.00 200.00 Uptrend
STATE BANK 2145.35 2246.00 2347.00 2085.00 2024.00 Downtrend
SIEMENS 553.55 571.00 590.00 537.00 521.00 Uptrend
STEEL AUTHOR 213.1 219.00 225.00 207.00 200.00 Uptrend
STER EQ 818 846.00 875.00 795.00 772.00 Downtrend
SUN PHARMA. 1504.75 1538.00 1571.00 1457.00 1408.00 Uptrend
SUZLON 82.25 86.00 90.00 78.00 73.00 Downtrend
TATAMOTORSEQ 733.95 755.00 777.00 698.00 662.00 Uptrend
TATA POWER 1318.5 1360.00 1401.00 1293.00 1266.00 Downtrend
TATASTEEL 563.25 578.00 593.00 544.00 524.00 Uptrend
TCS EQ 727.5 741.00 755.00 704.00 681.00 Uptrend
UNITECH LTD 80.2 86.00 92.00 77.00 73.00 Downtrend
WIPRO 674.7 698.00 723.00 647.00 620.00 Uptrend
Updates :
BSE revises transaction charges in derivatives segment
The Bombay Stock Exchange (BSE) is introducing revised transaction charges in the equity derivatives segment with effect from Tuesday, December 29, 2009. The targeted reduction in effective spreads and impact costs, along with the innovative fee structure, can potentially result in substantially lower transaction costs for all market participants.
This new pricing scheme is designed to improve depth and liquidity in the BSE equity derivatives segment. It will help shrink quoted spreads and thus reduce impact cost. The proposed structure is a transparent and equitable way to attract liquidity to the BSE platform.
When combined with mid-month expiration design, the BSE index and single stock futures and options markets now provide a whole new range of hedging, investment and trading opportunities to Exchange members and their retail and institutional clients.
The following transaction charges will apply with effect from Tuesday, December 29, 2009 in BSE’s derivatives segment:
Futures & Options Transaction charges applicable for Passive orders inclusive of IPF and TGF charges Transaction charges applicable for Active orders inclusive of IPF and TGF charges
Stock Futures and Index futures (on execution) (Rs.1 per lakh) # Rs.1.5 per lakh
Stock Options and Index options (on execution) (Rs.15 per lakh)## Rs.20 per lakh
IPF: Investor Protection Fund TGF: Trade Guarantee Fund
# (Rs 1 per lakh) will mean that the Exchange will pay Rs. 1 per lakh of transaction value to the member who has placed passive order in the order book which has matched in Stock Futures or Index Futures.
## (Rs. 15 per lakh) will mean that the Exchange will pay Rs. 15 per lakh of the total premium paid to the member who has placed passive order in the order book which has matched in Stock Options or Index Options.
The above transaction charges will be applicable uniformly across all valid orders executed in the Exchange’s Equity Derivatives segment. Executed orders will be identified as passive or active on the basis of their respective time stamps assigned by the BSE system. As per the Exchange trading system design, two orders cannot have the same time stamp.
Passive Orders: Passive orders are defined as the orders that already exist in the order book at the time of matching (order taking place).
Active Orders: Active orders are defined as the orders that are matched against the orders already existing in the order book at the time of matching (trade taking place).
Disclaimer: The recommendation made herein does not constitute an offer to sell or a solicitation to buy any of the securities mentioned. Readers using the information contained herein are solely responsible for their actions. The information and views contained herein are believed to be reliable but no responsibility or liability is accepted for errors of fact or opinion. Integrity, its directors, employees and associates may or may not have trading or investment positions in the securities mentioned herein.
www.integrity.org.in
Subscribe to:
Posts (Atom)
