Re: {LONGTERMINVESTORS} Market buzz, Whispers, Rumours, Heard on the street...Thread.

[RAJESH DESAI]

Pantaloon Retail, which had been on a losing spree for the past two days is suddenly back in the green. It is the biggest gainer in the midcap index, up almost 3% at Rs.202.25. It had hit an intra day high at Rs.206. There remain more sellers than buyers currently on the counter.

Along with Pantaloon, almost all the other retail stocks are up. Shoppers Stop is the second biggest gainer. Retail stocks are up after the PM yesterday, fighting off demands for a U-turn on allowing foreign investment in supermarkets,  said that the policy would bring jobs and technology to farmers and said that there was no question of a roll back. Yet, there prevails a sense of unease as traders do not know if the UPA will be able to get this through, which is why there are more sellers as stock price rises.

On Wed, Nov 30, 2011 at 10:15 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Spot power rates zoom as coal stations face dwindling stocks.

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CA. Rajesh Desai

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CA. Rajesh Desai

[RAJESH DESAI]

Q2 GDP at 6.9% v/s 7.7% (QoQ)

On Wed, Nov 30, 2011 at 11:07 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Titan is being shorted in huge qty.

HNI selling seen in Bajaj Holdings.

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CA. Rajesh Desai

[RAJESH DESAI]

Agro Tech Foods is up 6.3% at Rs.435.90 and it had hit an intra day high at Rs.449.95. Volumes are unbelievable at over 1.30 lakh shares changing hands compared to over 9,300 shares over past two weeks.

The stock is booming today after ConAgro Foods, a promoter of the company hiked its stake by almost 3.67% through off-market purchase. It bought the shares on 29^th Nov from ITC at a price of Rs 580 per share. Post this acquisition, promoters stake stands increased to 51.77% from 48.11% earlier.

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CA. Rajesh Desai

[RAJESH DESAI]

Titan is being shorted in huge qty.

HNI selling seen in Bajaj Holdings.

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CA. Rajesh Desai

[RAJESH DESAI]

[RAJESH DESAI]

Metal stocks declined after LMEX, a gauge of six metals traded on the London Metal Exchange fell 0.98% on Thursday, 1 December 2011.

On Fri, Dec 2, 2011 at 9:55 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Shares of Kingfisher Airlines slipped 5% to 22.80 on news that the carrier has been put on cash-and-carry basis by Mumbai International Airport Ltd (MIAL).

Hence, from tomorrow, the airline will have to start clearing the dues it owes to the Mumbai airport operator if it wants to continue landing and parking its aircraft here.

Kingfisher will now have to pay Rs 60 lakh each day towards parking and landing fee and other airport infrastructure.

The Vijay Mallya-led airline has lost the privilege of enjoying a credit cycle of one month like other airlines, as it has several times defaulted on its payments to the airport operator.

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Manmohan Tandan

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CA. Rajesh Desai

[RAJESH DESAI]

CRR CUT – DO AS THY NEIGHBOUR?

By RumaDubey China, like always, took everyone by surprise and yesterday, reduced its bank reserve ratio by 50 bps. We in India recognize this rate as the CRR or Cash Reserve Ratio.  Following the rate reduction by China, there is now huge expectation that RBI in its Credit Policy on 16th December will announce, if nothing else, a reduction in CRR. With no reduction in interest rates likely, the market wants at least a cut in CRR. And if China could do it, India can also do it, right? To get the basics right, CRR in simple parlance is the money which banks will have to keep with RBI. If the CRR is high, it means, banks will have to keep more money and if the rate is lowered, banks will have to keep lesser money with RBI. And CRR is hiked when there is excess liquidity in the market and the central bank wants to suck out that money. That is usually the scene when the economy is doing well and growth rates are on the ascent. But we are currently in the exact opposite scenario –growth is on the descent and there isn’t enough liquidity in the market. Thus, CRR cut tohbantahai! Currently, banks keep 6% of deposits in cash without earning interest. More importantly, the last CRR cut was in January 2009.  It is almost a certainty now that RBI will not hike rates, will take the much needed pause. And to compensate for that pause, there is great expectation that RBI, following China will cut CRR by 1%, which will infuse liquidity to the tune of at least Rs.60,000crore into the system. There is the Euro crisis and inflation is showing signs of ebbing, so pressure is mounting on RBI to ease liquidity by cutting CRR. But are these reasons enough? Why did China cut its rate now? Its Manufacturing Purchasing Managers’ Index (PMI) for November fell to a 32-month low of 47.7 and inflation is showing signs of cooling off. Thus now it is shifting its focus from inflation to growth and cutting the bank reserve ratio is the first step in that direction. This PMI reading is compiled by HSBC and any reading below 50 is a sign of growth rates coming off. India’s November PMI was at 51. So India is not yet in that ‘red’ zone as marked out by HSBC. So that is one box which will remain unchecked when tallying up for a CRR cut. The other point is inflation. Yes, food inflation, the main cause for worry is showing signs of coming down. For week ended 19th Nov, it was at 8% v/s 9.01% on a WoW. On the other hand, HSBC India Manufacturing PMI for Nov, the output price index at 55.4 which is around the same levels as in Oct and Sept. So as per the HSBC, if that is the basis on which China cut its rates, in India, manufacturing prices continue to rule high and remains a cause for worry. Thus for India to take a stance of going slack now, when prices are finally showing signs of coming down, might not be the best thing to do. Just because a neighbor cut rates, it does not mean we too should follow suit. In economics, ‘keeping up with the Joneses ‘ policy will just not work. RBI is trying to infuse liquidity into the market by buying government bonds through open market operations. Currently, the market is borrowing over Rs 1,25,000crore from the RBI and to bring down this borrowing, RBI will have to buy government bonds worth Rs 60,000 crore in coming weeks. This, in a nutshell means, RBI will be buying bonds to finance around 15% of Govt’s borrowing. And the Govt is borrowing like there is no tomorrow. Other than raising the borrowing limit from Rs 1.67 lakh crore to Rs2.2 lakh crore in H2FY12, it has sought Parliament's approval to spend Rs 63,000 crore more than budgeted. So how much bonds will RBI buy to infuse liquidity? Undoubtedly, these are tough times for RBI and any decision is not going to be easy. A pause, in all likelihood is what RBI will take. It might choose to wait and watch rather than do things just because a neighbor did it. Yes, cutting CRR might currently be the best way to infuse liquidity but Subburao is known to follow his own mind. Well, the suspense on Credit Policy continues. There is no rate hike expected so now hopes are being built on CRR cut. Such is the human mind, hope springs eternal.

On Fri, Dec 2, 2011 at 5:04 PM, kuch kuch kehna hai <kuchkuch...@gmail.com> wrote:

 Number of factors has resulted in the sharp move in the market. Though the market moved in a narrow range in the first session, stronger European opening helped the Indian market changed gears and help it close  near the day’s high. European markets are trading nearly 2 percent higher as Italian bonds yield moved down sharply.

BSE Sensex closed 363 points higher at 16,846 while Nifty closed the day at 5050, up 113 points.

Banking stocks led the rally from the front, with the banking index rising 3.26 percent. SBIclosed the day at Rs 1898, up 4 percent, while ICICI closed 3.64 percent higher at Rs 789.90. A series of news flow affected the sharp move in the banking stock. India’s bond yields have touched an 8 week low of 8.7 percent. There were news in the market of a possible CRR cut by the central bank. Further, rupee too has strengthened further and nears the 51 mark. IRDA rules for IPO by insurance companies also helped banking stocks as most of the bigger banks have present in this sector.

Auto stocks, buoyed by good sales figure for the month of November also traded higher. Tata Motors closed nearly 4.86 percent higher at Rs 191.90, while Maruti closed nearly 2.88 percent higher at Rs 989.

Metal stocks led by Tata Steel were the other major contributor to the market. The stock closed 4.18 percent higher at Rs 419.50. Hindalco closed up by 3.16 percent  at Rs 135.40.

Cement major Ambuja Cement closed over 8 percent at Rs 161 on higher sales and better realisation expectation.

Apollo Hospital touched an all time high level of Rs 709.95, but closed lower at Rs 676, up by 11.4 percent, on expectation of value unlocking of its insurance business.

 

On Fri, Dec 2, 2011 at 3:09 PM, karishma suvarna <karishma...@gmail.com> wrote:

Supreme Court (SC) has asked NMDC to fix price consolidation variables. The supreme court allowed company to fix Bellary iron ore floor price

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Karishma Suvarna

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CA. Rajesh Desai

[RAJESH DESAI]

Caustic soda prices rose by Rs 50 per 50 kg in the national capital today, on account of firm demand from consuming industries amid restricted supply from producing belts.

Caustic soda flake rose by Rs 50 to Rs 1,600-1,700 per 50 kg.

Marketmen said apart from good demand from detergent manufacturers, tight supplies from producing belts also pushed up caustic soda prices on the wholesale chemical market here.

Elsewhere, prices of other chemicals ruled steady on scattered deals.

The following are today's quotations:

Ammonium chloride (50 kg) Rs 850-2,200, acetic acid (1 kg) Rs 42-52, ammonia bicarb (25 kg) Rs 450-500, boric acid technical (50 kg) Rs 3,200-3,600, borex granular (50 kg) Rs 1,800-1,900.

Caustic soda flake (50 kg) Rs 1,600-1,700, citric acid (50 kg) (China) Rs 3,000-3,600, citric acid deshi (50 kg) Rs 3,000-3,700, camphor slab (1 kg) Rs 390, camphor powder (1kg) Rs 370, glycerine (1 kg) Rs 90-115, hexamine (1kg) Rs 85, hydrogen peroxide (1 kg) Rs 40-45, menthol bold crystal (per kg) Rs 1,660, menthol flake (1kg) Rs 1,605 and mentha oil (1kg) Rs 1,520.

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CA. Rajesh Desai

[RAJESH DESAI]

Category	Buy	Sell	Net
	Value	Value	Value
FII	2588.37	1991.48	596.89
DII	838.13	945.66	-107.53

 
activity on friday

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CA. Rajesh Desai

[RAJESH DESAI]

HDFC is being shorted by HNI
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CA. Rajesh Desai

[RAJESH DESAI]

Bank of India rose after the state-run bank said agreed to buy 51% stake in Bharti AXA Mutual Fund for an undisclosed amount.

On Mon, Dec 5, 2011 at 9:40 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Ashok Leyland gains on robust sales in November

Ashok Leyland advanced  after the company's commercial vehicle sales reportedly jumped 53.36% to 7,878 units in November 2011 over November 2010.  

On Sun, Dec 4, 2011 at 10:11 AM, Heena <ca.hee...@gmail.com> wrote:

Market volatility likely to continue in forthcoming week

The market is likely to exhibit high degree of volatility in the
forthcoming week. Lacking a clear direction, the market will dance to
the tunes of pace of reforms, foreign fund flows and global cues.

The week ahead is a truncated one as the stock market remains closed
on Tuesday, 6 December 2011 on account of Moharum.

The pace of reforms from the UPA-II will be closely watched as both
the houses of Parliament were adjourned till Wednesday, 7 December
2011 with Monday, 5 December 2011 and Tuesday, 6 December 2011 being
holidays. The deadlock in Parliament over foreign direct investment
(FDI) and several other issues continued for the ninth day on Friday,
2 December 2011. The adjournment came after Opposition and certain UPA
allies created a ruckus in both houses over FDI in retail. The Winter
Session began on 22 November 2011 and is slated to conclude on 22
December 2011.

World stocks saw action after the U.S. Federal Reserve, the European
Central Bank and the central banks of Canada, Britain, Japan and
Switzerland said on 30 November 2011 they would lower the cost of
existing dollar swap lines by 50 basis points from 5 December 2011,
and arrange bilateral swaps to provide liquidity for other currencies.
Investor focus has moved to a key European meeting on 9 December 2011
to see whether euro zone policymakers will follow through.

Market players will also track US employment figures and a key speech
on Friday, 2 December 2011 by German Chancellor Angela Merkel in hopes
she might unveil new steps to stanch Europe's escalating debt crisis.

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Manmohan Tandan

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CA. Rajesh Desai

[RAJESH DESAI]

Category Buy Sell Net Value Value Value

FII 1506.92 1360.19 146.73 DII 650.91 613.24 37.67

todays activity

On Mon, Dec 5, 2011 at 6:42 PM, karishma suvarna <karishma...@gmail.com> wrote:

tower talk from money times

* Deccan Chronicle has bought back 3.45 crore shares at an average price of Rs.66 utilizing Rs.228 crore. As per market grapevine, it plans to demerge its sports venture business. Keep a close watch. * Even though Vikram Akula has stepped down from the board, investors should stay away from SKS Microfinance. Scrip may see some pull back recovery in near future. * Hindustan Dorr-Oliver has bagged a Rs.170 order for effluent treatment system from an ONGC group company for its grassroot mega petrochemical project at Dahej. This may bring in some interest in the counter. Buy for short-term gains. * In the current turbulent times, institutional investors are betting on their old time favourite Hindustan Unilever. Despite rising inflation, this FMCG major continues to make new highs. * Arshiya International, a logistics player, is faring extremely well and is expected to post an EPS of Rs.20 in FY12 and Rs.28 in FY13. The share can be accumulated for medium-term gain with a target price of Rs.225. * IFB Agro Industries, a liquor player is all set to post an EPS of Rs.45 in FY12. The share may cross Rs.300 mark in one year on the back of its major expansion plans. * Munjal Auto Industries belonging to the Hero Group is expected to clock an EPS of Rs.40, which would take its price to Rs.250. * With a likely consolidated EPS of Rs.20 in FY12, the shares of Manaksia are going cheap. * Persons in the know are accumulating the shares of Ajanta Pharma. Sources expect the company to post an EPS of Rs.60 in FY12. The share is poised to touch Rs.45 mark. * Surya Pharma is available cheap at a forward P/E of just 2 on expected EPS of Rs.5.5. The share can appreciate by over 50% in one year. * Shiv-Vani Oil is all set to garner an EPS of Rs.50 in FY12 and Rs.55 in FY13. With a P/E multiplier of 3.8 and 3.4, the share is likely to appreciate by over 60% in the medium-term. * Simplex Castings with a low equity of Rs.6 crore is expected to clock an EPS of Rs.22 in FY12. The share is sure to cross the Rs.100 mark.

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Karishma Suvarna

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CA. Rajesh Desai

[RAJESH DESAI]

Source: Business Standard FIIs predict further downside for equities Where are the equity markets in India headed for 2012? Ask top foreign investors and their tone seems negative. UBS Securities, broking arm of the largest Swiss bank, and Australia’s Macquarie Equities Research are the most bearish. They have predicted a 20 per cent fall in the Bombay Stock Exchange benchmark index from its current level. The Sensex last traded at 16,800 on Monday. While UBS believes Indian markets are in the midst of a cyclical slowdown and a large outflow of foreign money could be a catalyst, Macquaire does not expect interest rates to ease for at least the next two to three quarters. This has led them to lower India’s growth targets. OUTLOOK FOR 2012 Citi Market outlook: Sensex at 18,400 by December 2012 Top buys: Axis Bank, SBI, Tata Motors, Jindal Steel & Power and Dr Reddy’s Overweight: Banks and autos. Underweight: Materials, IT, utilities and consumer. BofA-Merrill Lynch Market outlook: Sensex at 14,500 in six months Top buys (large-cap): Sun Pharma, Lupin, Maruti, HDFC Bank, ICICI Bank Top buys (mid-cap): Apollo Tyres, Havells, Exide, Dish TV, Manappuram UBS Securities Market outlook: 20 per cent further downside, Nifty target 6,500 by March 2013 Top buys: Bharti Airtel, Coal India, Federal Bank, Idea Cellular and M&M Least preferred: Bank of India, HCL Technologies, LIC Housing Finance and Tata Motors Macquarie Market outlook: Sensex at 14,000 by December 2012 Strategy: Defensive, at least over the next three months Nomura Market outlook: No significant short-term upswing Strategy: Correction as buying opportunity Then there is Japanese major Nomura, which does not see any upswing in the short term “due to global macro concerns and volatile risk sentiment”. The brokerage, however, has avoided putting a target on the Sensex. All the three brokerages, however, say the downside should be used as buying opportunity. Bank of America Merrill Lynch (BofA ML), the US financial major, is expecting a 14 per cent fall in the Sensex in the next six months. “We continue to expect a tough market and expect a correction of the Sensex to 14,500, as growth concerns take centre-stage," BofaML has sad in its report. It adds that peaking inflation and a consequent pause in RBI rates are a positive, which will likely help the traditional December rally. Citi, meanwhile, has set a 18,400-target for the Sensex by December 2012. Based on current levels, this implies a little under 10 per cent gain for the benchmark 30-share index. Citi’s 2012 target is based on a one-year forward price to earnings (PE) multiple of 14 times,also a 10 per cent discount to the long-term average as India has fundamentally de-rated. Citi, which has pegged the Nifty at 5,520 for next year-end, expects “positive market movements to be more upfront than back-ended (cyclical gains with structural caps from slower growth and forex vulnerability), and have tweaked (its) model portfolio to continue to position relatively aggressively.” Interestingly, UBS has set a March 2013 target for the Nifty at 6,500, based on a 12-month forward PE of 15 times and a base case FY14E earnings per share of Rs 430. Currently, the Nifty is trading at about 12.5 times forward PE, below the 10-year average.

On Tue, Dec 6, 2011 at 9:35 AM, kuku manmohan <manmoh...@gmail.com> wrote:

The government seems to be pushing ahead with its plan to open up the aviation sector. Sources informed that the finance ministry has given its nod for foreign airlines to buy up to 26% stake in Indian carriers, reports CNBC-TV18's Aakanksha Sethi.

The finance ministry was contemplating allowing foreign carriers to buy 49% stake in Indian carriers, but the finance minister has gone in for 26%. He also said that the SEBI takeover code will have to be tweaked to allow for this. There is a trigger point of acquiring stake of 25%, after which the company has to make a mandatory open offer of 26%.

If foreign airlines are allowed to buy 26%, then they would have to do another mandatory open offer of 26% that will take their total stake to 52%, whereas the sectoral cap in aviation is only 51%, which will be breached.

The takeover code will be tweaked to say that the mandatory open offer size will have to be inline with the sectoral cap for aviation sector in specific, which means it will have to be within 49%.

So, this change will also have to be made for this proposal to go forth. It remains to be seen what the other ministries, especially home ministry, has to say on this proposal

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Manmohan Tandan

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CA. Rajesh Desai

[RAJESH DESAI]

Eros International Media advanced after the company joined hands with Dharma Productions to release ‘Agneepath' movie in the international markets on 26 January 2012.

On Wed, Dec 7, 2011 at 9:56 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Sanghvi Movers falls after 0.46% equity changed hands in three bulk deals executed on the BSE today, 7 December 2011.


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CA. Rajesh Desai

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CA. Rajesh Desai

[RAJESH DESAI]

[RAJESH DESAI]

Mutual funds are buying Zensar

On Wed, Dec 7, 2011 at 12:50 PM, taiyeb ali <taiyebal...@gmail.com> wrote:

Mcnally Bharat Engineering has bagged orders worth Rs 144 crore.
 
The share has touched an intraday high of Rs 106.70 and an intraday low of Rs 98.60. At 12:11 hrs the share was quoting at Rs 102.70, up Rs 3.70, or 3.74%.
 
It was trading with volumes of 91,572 shares, compared to its 5-day average of 31,667 shares, an increase of 189.18%.

On Wed, Dec 7, 2011 at 11:37 AM, yamini chopra <chopra...@gmail.com> wrote:

Japan manufacturing mood turns negative for the first time in six months, a Reuters poll showed. Manufacturers are struggling to cope with the yen’s prolonged strength, global slowdown, slump in demand for electronics and Thai floods.
 
Australia’s economy grew faster than estimated last quarter on consumer spending and business investment. GDP increased 1% from July-September compared to the median estimate of 0.8%. Compared to the previous year, the economy expanded 2.5% in 3Q.

 

On Wed, Dec 7, 2011 at 11:09 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Indiabulls Real Estate hit a new low today at Rs.40.10 but soon bounced back from those levels. It is currently at Rs.55, down 13%. Yet, there now remain over 2.4 lakh buyers on the counter compared to over 1.6 lakh sellers.

The stock is down due to the post demerger trading of its power business. The company has fixed 8th Dec as the record date and as per the scheme of arrangement investors will 3 shares of Indiabulls Power for 1 share held in Indiabull Real Estate. The equity shares of Indiabulls Infrastructure and Power, issued as aforesaid, would get listed with the stock exchanges as per the terms of the scheme.

On Wed, Dec 7, 2011 at 11:03 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Dewan Housing in news

Dewan Housing up 4.5% at Rs.198.45 with huge volumes at over 23,000 shares being traded today morning alone vis-à-vis around 8900 shares traded over past two weeks. The stock is up on news news that ArthVeda Fund Management, a unit of Dewan Housing Finance Corp plans to raise Rs 2 billion to invest in greenfield real estate projects.   The company plans to invest funds in middle income housing projects, ranging Rs.15 lakh to Rs.40 lakh per unit, in Tier II and Tier III cities and metro outskirts across India.  The investment duration is stated to be 24-36 months.

On Wed, Dec 7, 2011 at 10:14 AM, karishma suvarna <karishma...@gmail.com> wrote:

The share of Future Capital Holdings rose 6% to Rs 143.40 on the buzz that Mr Kishore Biyani has sold Future Capital to Deccan Chronicle for Rs 700 crore and also selling its 26% stake in insurance JV to IITL, reports The Economic Times.

Meanwhile, Deccan Chronicle denies the news and Mr Biyani is not available for comments.

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Karishma Suvarna

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CA. Rajesh Desai

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CA. Rajesh Desai

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Best Regards,

Taiyeb Ali
786

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CA. Rajesh Desai

[RAJESH DESAI]

Dubai faces refinancing risks, says Moody's

US$10b of debt due to mature next year of which 3 firms account for US$3.8b


(DUBAI) Dubai, which has restructured US$41 billion of debt related to its flagship conglomerate and has about US$10 billion due next year, faces refinancing risks related to some upcoming maturities, Moody's said yesterday.

It said the main risk relates to three firms - Dubai Holding Commercial Operations Group, part of the ruler's private holding company, DIFC Investments (DIFCI) and Jebel Ali Free Zone - which have US$3.8 billion due next year.

The rating agency anticipated less government support now than Dubai World received two years ago.

The Dubai government, backed by wealthy Abu Dhabi, supported Dubai World and its property arm Nakheel through the debt crisis but has since made clear it will only deploy its limited resources to back strategic entities.

'We believe it is DIFCI that is most likely to rely on direct government support in conjunction with refinancing its maturing debt obligations in 2012,' Moody's said, noting the Dubai government is directly exposed to DIFCI, which runs the city's financial freezone, having given it two loans.

The Financial Times said yesterday that Dubai had raised the prospect of restructuring some bonds and is pursuing other options to help state-related entities meet their obligations. Those include raising US$2 billion in funds from liquid local banks, it said.

'We are working hard to meet all our liabilities but times are different. We are more confident we can negotiate a commercial deal with bondholders,' a senior government official is quoted as saying.

In addition to the Dubai World restructuring, Dubai entities have been refinancing loans over the past two years but there has been no default on a public bond.

Although 'significant progress' has been made by the government and state-owned companies to tackle maturing debt, the rating company said in a report yesterday that it remains concerned about the emirate's maturing debt.

'Moody's has seen very few real signs of material and voluntary deleveraging,' said David Staples, managing director for GCC Corporate ratings at Moody's. - Reuters, Bloomberg

On Wed, Dec 7, 2011 at 9:35 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Ranbaxy Laboratories rose after the company said it has launched authorised generic version of Caduet in the United States.

On Tue, Dec 6, 2011 at 2:55 PM, karishma suvarna <karishma...@gmail.com> wrote:

Dalal Street’s Rumor-mill

• Abnormal movement on the counter of One Life Capital warranting

watch dog body inspection. Will it materialize soon?

• The month of December 2011 is crucial for the bourses as it is the final

month of exit from FIIs. Any fall hereafter will provide golden opportunity

to part medium term funds, opine seasoned operators.

• Informed buying is witnessed on the counter of Tree House. According

to punters, scrip is set to scale new highs in coming months.

• Although MRF posted good numbers for the concluded quarter, but will

it consider bonus is a million dollar question.

• Colgate Palmolive is worth considering on declined level for medium

term rewards, opine bulls from Mumbai.

• Investment brokers recommend Varun Ind. to their HNI clients. Scrip

is set to northward on bulls chase.

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CA. Rajesh Desai

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CA. Rajesh Desai

[RAJESH DESAI]

Indiabulls Real Estate hit a new low today at Rs.40.10 but soon bounced back from those levels. It is currently at Rs.55, down 13%. Yet, there now remain over 2.4 lakh buyers on the counter compared to over 1.6 lakh sellers.

The stock is down due to the post demerger trading of its power business. The company has fixed 8th Dec as the record date and as per the scheme of arrangement investors will 3 shares of Indiabulls Power for 1 share held in Indiabull Real Estate. The equity shares of Indiabulls Infrastructure and Power, issued as aforesaid, would get listed with the stock exchanges as per the terms of the scheme.

On Wed, Dec 7, 2011 at 11:03 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Dewan Housing in news

Dewan Housing up 4.5% at Rs.198.45 with huge volumes at over 23,000 shares being traded today morning alone vis-à-vis around 8900 shares traded over past two weeks. The stock is up on news news that ArthVeda Fund Management, a unit of Dewan Housing Finance Corp plans to raise Rs 2 billion to invest in greenfield real estate projects.   The company plans to invest funds in middle income housing projects, ranging Rs.15 lakh to Rs.40 lakh per unit, in Tier II and Tier III cities and metro outskirts across India.  The investment duration is stated to be 24-36 months.

On Wed, Dec 7, 2011 at 10:14 AM, karishma suvarna <karishma...@gmail.com> wrote:

The share of Future Capital Holdings rose 6% to Rs 143.40 on the buzz that Mr Kishore Biyani has sold Future Capital to Deccan Chronicle for Rs 700 crore and also selling its 26% stake in insurance JV to IITL, reports The Economic Times.

Meanwhile, Deccan Chronicle denies the news and Mr Biyani is not available for comments.

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Karishma Suvarna

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CA. Rajesh Desai

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CA. Rajesh Desai

[RAJESH DESAI]

[RAJESH DESAI]

RETAIL FDI – ON HOLD; PARLIAMENT – FINALLY OFF HOLD!

By Ruma Dubey

The 'breaking news' headline screams – FDI in retail suspended; Parliament logjam ends.

This is like good and bad news together. Should one feel completely crushed and defeated by news of the Govt bowing down to the Opposition and putting FDI in retail on a backburner or should one feel relieved that finally the Parliament will get to work and the policy paralysis will hopefully come to an end?

FIIs have not been too kind with their words on this backtrack by the Govt on FDI. J im O'Neill, chairman of Goldman Sachs Asset Management stated that India's record on productivity, FDI and reform has been the most disappointing of the four BRIC economies. He said, “"India has the risk of ... if they're not careful, a balance of payments crisis. They shouldn't raise people's hopes of FDI and then in a week say, 'we're only joking."

Is this how the entire FDI fiasco is being viewed by the world? Yes, it is a reform which should have ushered in more FDI but the entire way in which the floundering UPA Govt handled the issue, led to this withdrawal. Any idea, even if it is good, needs to be a presented right and that is where UPA made the big mistake. And now, it is too late to correct that. Undoubtedly, the image has been hit. But can we look at this issue from another angle?

FDI in retail was one issue but was it worth holding up the entire Winter session of the Parliament? There are so many more important policy decisions which have to go through and those probably have far more significance. Was one FDI worth holding all that up?

Important Bills for Consideration and Passing:

·            The Lokpal bill

·            The Pension Fund Regulatory and Development Authority Bill, 2011 

·            The Seeds Bill, 2004 

·            The Judicial Accountability Bill

·            Direct taxes Bill

·            Good and services Bill

·            The Nuclear Regulatory Authority Bill, 2011.

·            The Cable Television Networks (Regulation) Amendment Bill, 2011 

·            The National Food Security Bill, 2011

·            The Prevention of Money Laundering (Amendment) Bill, 2011

·            The Companies Bill, 2011

·            The Mines and Minerals (Development and Regulation) Bill, 2011

It would mean that we might not be able to go to some more new malls, maybe not a Carrefour or a Wal Mart but surely, that’s ok. The Govt needs to now build on working out a consensus and get back to the work of governance.  Yes, what we are indeed losing out is on the backend retail infrastructure buildup which India needs desperately.  And the issue of kiranas and mom-and-pop shops closing down? Nah! That is not going to happen. It did not happen now when already cities are teeming with malls. How can some more malls affect their business?  The Opposition just did not like the authoritarian way in which UPA handled this retail FDI issue. If the govt had shown some maturity, this could have worked.

Maybe it is time for the Govt to also look at how it makes decisions. FDI in retail is just put back on the shelf; it is not an expired product. When the Govt starts the process of building a consensus, it probably needs to use the very same social media and electronics media to come to a decision. Using the media and the internet smartly, building up the need for FDI in retail, making it into a mass movement will make it seem that it is what the people want and not the govt. Maybe a few marketing and PR lessons from Anna might help.

One does not now know whether, for now, in the Winter session, FDI in itself, be it for any sector has become a bad word, a taboo. Now that would be tragic as FDI for India’s economy is essential.  As per data put out by United Nations, India received less than $20 billion in FDI in Jan to June 2011. This is the lowest in the BRIC countries, with Brazil FDI at $23 billion, China at $60 billion and Russia at $33 billion.

Does this one ‘abeyance’ in retail mean that FIIs and FDI will stop coming to India? Not likely. They need India just as we need them. So to say that this one decision will stop them looking at India as a land of opportunities would be naïve. It is also equally important that hereafter the Govt treads very carefully. Or else, yes, the entire fruit basket could get toppled.

On Wed, Dec 7, 2011 at 3:01 PM, MIHIR DESAI <mihirra...@gmail.com> wrote:

Owing to fall in iron ore price on the Chinese index, steel stocks in
India are rallying today with Tata Steel and JSW Steel among the
gainers.

--
CA. Rajesh Desai

[RAJESH DESAI]

Coal India down over 3%

Coal India is down almost 3% at Rs.315.40, close to its intra day low at Rs.314.55.

The stock is down after the company announced on its own accord that it is willing to lend Rs.15,000 crore to the Govt, provided it is paid an interest to tide over the current divestment crisis. The company stated that it would be having cash reserves of about Rs60,000 crore by March 2012 and was willing to spare Rs15,000 crore for the government. This has not gone down too well with the market as naturally, it means parting with its own reserves and one does not know whether the Govt will be willing to pay interest though it now knows that Coal India surely has Rs.15,000 crore to spare. 

On Thu, Dec 8, 2011 at 11:06 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Moser Baer up over 4%

Moser Baer which had hit a new 52-week low at Rs.18.15 is today at Rs.19, up 4.38%. Volumes are almost at 3.5 lakh shares traded as against around 1.77 lakh shares traded over past two weeks. Market cap stands at Rs.320 crore.

The stock is up on news that its renewable energy vertical, Moser Baer Clean Energy is investing $1 billion (Rs 5,100 crore)for setting up solar projects with accumulative capacity of 300 megawatt in the country and abroad in the next nine months. Half of the total projects would be set up in Gujarat, Orissa, West Bengal and Rajasthan in India, while the other half in countries like Germany, Italy and the UK. 

On Thu, Dec 8, 2011 at 10:16 AM, RAJESH DESAI <stock...@gmail.com> wrote:

The Sensex is likely to rule between 13,200 and 14,400 points and the rupee may touch Rs 54-55 by June next, Credit Suisse India has said in a report. "We remain bearish on the overall market, with downside risks to both multiples as well as earnings. The Sensex is likely to fall in the range between 13,200 and 14,400 points and the rupee may touch Rs 54-55 by June 2012," Credit Suisse India equity strategy head Neelkanth Mishra told reporters.

The market is not trading at its face value and possibility of downtrend is most likely, he said while releasing the Credit Suisse India 2012 Outlook report here. The trend is already clear, he said and pointed out that "Q2 was the first quarter in two years to see a YoY decline in profits for companies in the Nifty.

More worrying is that this happened despite a 20% annual sales growth, thus indicating continuing margin depletion, which is already at a three-year low. "We fear that a potential slowdown could impact sales and could put further pressure on operating profit growth due to negative operating leverage," the report said.

The rupee has been one of the weakest currencies globally in 2011 and the weakest in Asia, falling 17% since August alone. Credit Suisse believes the rupee would continue to be weaker. Mishra pointed out that the rupee is likely to continue to weaken over the next three-to-six months, putting more pressure on inflation, delaying rate cuts and hurting foreign- investor returns.

"We expect the rupee to touch Rs 54-55 by June next, but it is unlikely to touch Rs 60," Mishra said, adding only debt flows can potentially support the rupee.

On Thu, Dec 8, 2011 at 10:03 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Gujarat Fluorochemicals rose after the company entered into a joint venture agreement with Gujarat Mineral Development Corporation and Navin Fluorine International to undertake a Fluorspar Beneficiation Project.

On Thu, Dec 8, 2011 at 10:01 AM, RAJESH DESAI <stock...@gmail.com> wrote:

UTV Software spurts as Govt clears buyout by Walt Disney

A release published after market hours on Wednesday, 7 December 2011 showed the Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Walt Disney Company (Southeast Asia) Pte, Singapore for increasing its stake in UTV Software Communications pursuant to the Foreign Investment Promotion Board recommendation in its meeting held on 15 November 2011. This approval is expected to result in foreign direct investment inflows amounting to Rs 8250 crore, the CCEA release said.

Foreign promoter Walt Disney Company plans acquire 100% stake in UTV Software Communications and delist the latter's shares from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Walt Disney Company held 50.28% stake in UTV Software Communications while 19.75% is held by other promoters--Rohinton Screwvala, Unilazer Exports and Management Consultants, Unilazer (Hong Kong) and Zarine Mehta. The total promoter holding in UTV Software Communications is 70.04% as at end September 2011. The delisting proposal has been approved by UTV Software Communications' board of directors at a board meeting held on 25 July 2011.

UTV Software said the acquisition of shares from the public shareholders may be made at a price not exceeding Rs 1,000 per share and the delisting will be carried out in accordance with Sebi delisting norms.

--
CA. Rajesh Desai

--
Manmohan Tandan

--
CA. Rajesh Desai

--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

Food inflation falls to 6.6% for week ended Nov 26

NEW DELHI: India's food inflation plunged sharply to 6.6 per cent for the week ended Novmber 26 as compared to 8 per cent in the previous week as onions, potatos and wheat became cheaper and the rise in the prices of other items moderated on the back of a good monsoon, official data showed Thursday. 

Food inflation has dropped sharply in the last four weeks. It had come down in single digit for the week ended November 12 from 10.63 per cent in the previous week. The headline inflation based on the wholesale price index was recorded at 9.73 per cent in October, according to the latest official data. 

The Reserve Bank of India (RBI) has hiked key policy rates 13 times since the beginning of 2010 to control the price rise. 

On Thu, Dec 8, 2011 at 12:51 PM, yamini chopra <chopra...@gmail.com> wrote:

Key benchmark indices slumped to hit their lowest level in nearly one week in mid-morning trade after a court today, 8 December 2011, accepted a plea seeking a probe into the role of Home Minister P. Chidambaram in the alleged rigging of mobile-phone license allocations in 2008. A newspaper report that industrial output declined by 7% in October 2011 also weighed on sentiment as the 50-unit S&P CNX Nifty fell below the psychological 5,000 mark. The barometer index, BSE Sensex, was down 314.12 points or 1.86%, off close to 285 points from the day's high and up about 15 points from he day's low. The The market breadth was weak.

On Thu, Dec 8, 2011 at 12:31 PM, yamini chopra <chopra...@gmail.com> wrote:

Coal India drops on reports of slashing FY 2012 production target

Coal India falls after the company reportedly lowered its production target for the ongoing financial year ending March 2012 to at least 440 million tonne from the estimate of 452 million tonne.

As per reports, Coal India's downward revision in the annual production target was due to heavy rainfall, strike and delays in the grant of forestry and environmental clearances to coal projects. The public sector firm is planning to mine between 556 million tonne and 615 million tonne of coal in the terminal year of the 12th Five-Year Plan (2012-2017), reports added. As per business as usual scenario, it would be 556 million tonne in the terminal year of 12th Plan while based on the other scenario it would be is 615 million tonne.

Coal India had lowered its production target to 440.20 million tonne from 460.50 million tonne in the year ended March 2011 as well. However, CIL, which accounts for 80% of domestic coal production in the country, missed its revised production target last fiscal too, recording an output of just 431 million tonne.

On Thu, Dec 8, 2011 at 12:27 PM, yamini chopra <chopra...@gmail.com> wrote:

Zensar Technologies said that it would provide Google Apps solutions in Asia Pacific (APAC) region, and to large retail and manufacturing customers in India. Zensar Technologies is also adopting Google Apps on a company-wide basis for enhanced communication, collaboration and efficiency.

Google Apps is a web-based suite of applications that include Gmail, Google calendar and integrated chat along with Google Docs, Google sites and Google's word processing, spread sheet, presentation and website creation tools.

These applications will enable Zensar associates to collaborate on web based documents in real time, without the hassle of mailing attachments back and forth and keeping track of various versions allowing these tools to together serve as a "communication hub".

Additionally using Google Apps Marketplace and Google App Engine, Zensar will be able to access third party applications and build their own customized applications for external and internal use on top of Google's platform, Zensar said in a statement.

Commenting on the partnership, Dr Ganesh Natarajan, Vice Chairman and CEO, Zensar Technologies said, Zensar is committed to building the next generation of collaboration infrastructure for the benefit of all its Indian and global customers. Google Apps takes us one step closer to that goal. Zensar has a geographically dispersed, highly mobile and skilled workforce which needs to operate on a 24 by 7 basis. We expect that Google Apps will not only enhance collaboration but these tools will empower them, providing more choice and flexibility in where, when and how they choose to do their work. We plan to use the reseller relationship to bring benefits of Google Apps to more businesses in India focusing on retail and manufacturing verticals”.

On Thu, Dec 8, 2011 at 12:15 PM, karishma suvarna <karishma...@gmail.com> wrote:

In a press release, Nectar Lifesciences said the approval for Cephalosporin will facilitate its foray into lucrative 27 European Union member states, EEU, South Africa and Middle East markets on account of mutual recognition.

After receiving EU cGMP for API facility in October 2011, Nectar Lifesciences has received the European cGMP compliance certification for its Cephalosporin formulations facility in Baddi for injectables Cephalosporins. This approval was granted following the successful inspection by the Hungarian authority – National Institute for Quality and Organizational Development in Healthcare and Medicines, National Institute of Pharmacy - in June 2011, the company release said.

On Thu, Dec 8, 2011 at 11:55 AM, investor world <investo...@gmail.com> wrote:

Chakry comment....
Fear Vs Wisdom.....

Wednesday, December 07, 2011

End of the day……

The rally in the first half an hour was not really convincing but it seems it was there to eat the stop loss of bears at 5110. Market gave up some gains and bears started shorting again at 5090 with target 5040. However I believe that Nifty will rise now to 5180, 5250 and 5320 in this settlement though many factors do not suggest the rally is warranted. The fact remains that market is still oversold.

This is really stupid and non senses thing in life to trade for 50 odd points.

Germany trigger may spark rally in global markets on Friday as indicators are there it will be through.

Fitch has reported that China may cut another CRR rate. This if happens then India will compelled to cut CRR and this could happen on 16th Dec as per many experts and fund managers.

Settlement end is still far away and hence the drama will start after 20th Dec but one has to keep in mind that stocks may rally even though Nifty many not rise that much simply because of NAV game in Dec. Hence shorting in this month should be avoided.

Secondly as told you time and again because of cash settlement the stocks which rise in first half keep on rising and vice a versa. Accordingly I believe that SBI, Hindalco, Tisco, RIL, SAIL, Jindal Steel IFCI B dyeing and JSW could rise one way and see new highs on settlement day whereas stocks like pantaloon and Jet could be the victims of cash settlement and will be dragged still lower.

SAIL could be real star performer as some funds have started cutting their short positions in this counter as Q3 could be better for this co. Merger of Maharashtra Elctrosmelt, acquisitions of coking coal mines in Australia and oversold status could make this stock darling of the market once again. This stock had fallen from 260 to 80 whereas the B V is Rs 90 and Govt has now cancelled its FPO suggest stock is for run an d is a great buy at current market price. It is also likely announce some other steel (unlisted PSU) merger in steel to make SAIL a very strong company.

On Thu, Dec 8, 2011 at 10:16 AM, RAJESH DESAI <stock...@gmail.com> wrote:

The Sensex is likely to rule between 13,200 and 14,400 points and the rupee may touch Rs 54-55 by June next, Credit Suisse India has said in a report. "We remain bearish on the overall market, with downside risks to both multiples as well as earnings. The Sensex is likely to fall in the range between 13,200 and 14,400 points and the rupee may touch Rs 54-55 by June 2012," Credit Suisse India equity strategy head Neelkanth Mishra told reporters.

The market is not trading at its face value and possibility of downtrend is most likely, he said while releasing the Credit Suisse India 2012 Outlook report here. The trend is already clear, he said and pointed out that "Q2 was the first quarter in two years to see a YoY decline in profits for companies in the Nifty.

More worrying is that this happened despite a 20% annual sales growth, thus indicating continuing margin depletion, which is already at a three-year low. "We fear that a potential slowdown could impact sales and could put further pressure on operating profit growth due to negative operating leverage," the report said.

The rupee has been one of the weakest currencies globally in 2011 and the weakest in Asia, falling 17% since August alone. Credit Suisse believes the rupee would continue to be weaker. Mishra pointed out that the rupee is likely to continue to weaken over the next three-to-six months, putting more pressure on inflation, delaying rate cuts and hurting foreign- investor returns.

"We expect the rupee to touch Rs 54-55 by June next, but it is unlikely to touch Rs 60," Mishra said, adding only debt flows can potentially support the rupee.

On Thu, Dec 8, 2011 at 10:03 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Gujarat Fluorochemicals rose after the company entered into a joint venture agreement with Gujarat Mineral Development Corporation and Navin Fluorine International to undertake a Fluorspar Beneficiation Project.

On Thu, Dec 8, 2011 at 10:01 AM, RAJESH DESAI <stock...@gmail.com> wrote:

UTV Software spurts as Govt clears buyout by Walt Disney

A release published after market hours on Wednesday, 7 December 2011 showed the Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Walt Disney Company (Southeast Asia) Pte, Singapore for increasing its stake in UTV Software Communications pursuant to the Foreign Investment Promotion Board recommendation in its meeting held on 15 November 2011. This approval is expected to result in foreign direct investment inflows amounting to Rs 8250 crore, the CCEA release said.

Foreign promoter Walt Disney Company plans acquire 100% stake in UTV Software Communications and delist the latter's shares from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Walt Disney Company held 50.28% stake in UTV Software Communications while 19.75% is held by other promoters--Rohinton Screwvala, Unilazer Exports and Management Consultants, Unilazer (Hong Kong) and Zarine Mehta. The total promoter holding in UTV Software Communications is 70.04% as at end September 2011. The delisting proposal has been approved by UTV Software Communications' board of directors at a board meeting held on 25 July 2011.

UTV Software said the acquisition of shares from the public shareholders may be made at a price not exceeding Rs 1,000 per share and the delisting will be carried out in accordance with Sebi delisting norms.

--
CA. Rajesh Desai

--
Manmohan Tandan

--
CA. Rajesh Desai

--
JAI JINENDRA

Sarju Shah

--



Karishma Suvarna

--
CA. Rajesh Desai

[RAJESH DESAI]

Moser Baer up over 4%

Moser Baer which had hit a new 52-week low at Rs.18.15 is today at Rs.19, up 4.38%. Volumes are almost at 3.5 lakh shares traded as against around 1.77 lakh shares traded over past two weeks. Market cap stands at Rs.320 crore.

The stock is up on news that its renewable energy vertical, Moser Baer Clean Energy is investing $1 billion (Rs 5,100 crore)for setting up solar projects with accumulative capacity of 300 megawatt in the country and abroad in the next nine months. Half of the total projects would be set up in Gujarat, Orissa, West Bengal and Rajasthan in India, while the other half in countries like Germany, Italy and the UK. 

On Thu, Dec 8, 2011 at 10:16 AM, RAJESH DESAI <stock...@gmail.com> wrote:

The Sensex is likely to rule between 13,200 and 14,400 points and the rupee may touch Rs 54-55 by June next, Credit Suisse India has said in a report. "We remain bearish on the overall market, with downside risks to both multiples as well as earnings. The Sensex is likely to fall in the range between 13,200 and 14,400 points and the rupee may touch Rs 54-55 by June 2012," Credit Suisse India equity strategy head Neelkanth Mishra told reporters.

The market is not trading at its face value and possibility of downtrend is most likely, he said while releasing the Credit Suisse India 2012 Outlook report here. The trend is already clear, he said and pointed out that "Q2 was the first quarter in two years to see a YoY decline in profits for companies in the Nifty.

More worrying is that this happened despite a 20% annual sales growth, thus indicating continuing margin depletion, which is already at a three-year low. "We fear that a potential slowdown could impact sales and could put further pressure on operating profit growth due to negative operating leverage," the report said.

The rupee has been one of the weakest currencies globally in 2011 and the weakest in Asia, falling 17% since August alone. Credit Suisse believes the rupee would continue to be weaker. Mishra pointed out that the rupee is likely to continue to weaken over the next three-to-six months, putting more pressure on inflation, delaying rate cuts and hurting foreign- investor returns.

"We expect the rupee to touch Rs 54-55 by June next, but it is unlikely to touch Rs 60," Mishra said, adding only debt flows can potentially support the rupee.

On Thu, Dec 8, 2011 at 10:03 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Gujarat Fluorochemicals rose after the company entered into a joint venture agreement with Gujarat Mineral Development Corporation and Navin Fluorine International to undertake a Fluorspar Beneficiation Project.

On Thu, Dec 8, 2011 at 10:01 AM, RAJESH DESAI <stock...@gmail.com> wrote:

UTV Software spurts as Govt clears buyout by Walt Disney

A release published after market hours on Wednesday, 7 December 2011 showed the Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Walt Disney Company (Southeast Asia) Pte, Singapore for increasing its stake in UTV Software Communications pursuant to the Foreign Investment Promotion Board recommendation in its meeting held on 15 November 2011. This approval is expected to result in foreign direct investment inflows amounting to Rs 8250 crore, the CCEA release said.

Foreign promoter Walt Disney Company plans acquire 100% stake in UTV Software Communications and delist the latter's shares from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Walt Disney Company held 50.28% stake in UTV Software Communications while 19.75% is held by other promoters--Rohinton Screwvala, Unilazer Exports and Management Consultants, Unilazer (Hong Kong) and Zarine Mehta. The total promoter holding in UTV Software Communications is 70.04% as at end September 2011. The delisting proposal has been approved by UTV Software Communications' board of directors at a board meeting held on 25 July 2011.

UTV Software said the acquisition of shares from the public shareholders may be made at a price not exceeding Rs 1,000 per share and the delisting will be carried out in accordance with Sebi delisting norms.

--
CA. Rajesh Desai

--
Manmohan Tandan

--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

Yesterday Natco Pharma has raised Rs 67.5 crore via QIP. They issued 3 million shares at Rs 225 per share, reports CNBC-TV18.

Sun Pharma promoter Dilip Shanghvi has bought 3.7% stake in Natco Pharma. He acquired 10.45 lakh shares in 2 block deals this week.

In an exclsuive interview to CNBC-TV18 the company said, "Dilip Shanghvi's stake buy in Natco is at a personal level. The stake buy is not a matter of concern. There is no dialogue with Dilip Sanghvi yet."

The QIP issue was oversubscribed. The issue pricing was as per SEBI determined formula. The QIP funds will be used for capex."

On Thu, Dec 8, 2011 at 11:24 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Lok Sabha adjourned till noon:opposition demands resignation of HM...lungi,

--
CA. Rajesh Desai

[RAJESH DESAI]

MUMBAI: HDFC Bank, the lender with the highest proportion of low-cost deposits to total, has raised charges on closure of savings bank accounts and other services as it attempts to ring fence customers from flocking to rivals who offer higher rates on these deposits. 

It is the first lender to raise such charges probably to save its profitability after the Reserve Bank of India freed up the rates that banks pay their customers in their savings bank accounts, said two bankers who did not want to be identified. 

For closure of savings account, an HDFC Bank customer, depending on the nature and tenure of the account, will have to pay a fee of Rs 500 and if the average monthly balance falls below Rs 20,000 in nonurban centres, it will charge Rs 500 a month, according to its website listing various charges effective January 2012.



--
CA. Rajesh Desai

[RAJESH DESAI]

EU SUMMIT – HO-HUM….ERRR… WELL…

By Ruma Dubey The biggest expectation from the much hyped EU Summit was announcement of a large scale purchase of bonds by the European Central Bank (ECB). Well that did not happen. The summit did not come out with immediate ‘fire dousing’ kind of measures but what it came out with instead are measures which will at least henceforth reduce risks of another similar debt crisis in the EU zone. Yes, the summit, as expected was more hype and less action. Why were Asian and Indian markets so hung up about this summit? Maybe because as this point of time, we have nothing much to cheer about and thus, anything, anywhere which has even a semblance of some good news was enough. The summit was more of a palliative care – it brought forth measures to alleviate symptoms, whether or not there is hope of a cure by other means. The European Union leaders agreed on measures to address the region's sovereign debt crisis, and significant amongst those was stricter budget rules for the euro zone, which they believe will cure reduce if not cure structural problems behind the bloc's debt crisis.  The summit could not bring about changes to the EU treaty among all the member countries.  The summit was more about how to avoid such risks in the future and had nothing or very little to talk about the overcoming crisis in Greece, Italy and the European banking system. The EU Summit, as was expected, did nothing to bring down the interest costs for Italy and Spain and despite the summit, we still do not know how EU Govts and banks will finance themselves over the next three months. The EU leaders announced on Friday that an intergovernmental agreement will go ahead and be written by March, but without the full, immediate support of all 27 members. U.K. said it will not take part in any new deal. Sweden, the Czech Republic and Hungary initially did not commit themselves to an agreement. All countries, which are the remaining 23, that commit to the new EU treaty cannot allow their annual deficits to exceed 0.5% of economic output in normal times. The cap is set at 3% if there is a recession or other exceptional circumstances. And there will be automatic penalties for countries whose deficits exceed 3% of GDP. As the Economist magazine rightly puts it - Whether the agreement does anything to stabilise the euro is moot. The agreement is heavily tilted towards budget discipline and austerity. It does little to generate money in the short term to arrest the run on sovereigns, nor does it provide a longer-term perspective of jointly-issued bonds. Much will depend on how the European Central Bank responds in the coming days and weeks. Now that we kind of know that the EU summit is not going to be like the Santa Claus, handing out ‘gifts’ to bring cheer and reduce misery, the next big question is – will this cause downgrades? Like the doomsday predictor, S&P had warned earlier this week that it would decide whether to downgrade 15 euro zone countries, including Germany and France, depending on whether an EU summit in Brussels on Thursday and Friday produced a convincing response to the debt crisis. Well, we now know that nothing much has come out of the summit. Does that mean that we are staring ahead at a downgrade? And the consequence of downgrade on the markets would not exactly be very kind. Well, the US markets ended on a happy note despite the not-so-firecracker results from the summit. For us in India, well, we have to move on and deal with the gaffe which the Govt has admitted to on the export front - goof-up in export data inflated the figure by $9 b in April-Oct 2011.  And then we have the IIP data too on Monday, which, expectedly, may not be too palatable. Enjoy the weekend before the tough week ahead.

On Sat, Dec 10, 2011 at 3:14 PM, karishma suvarna <karishma...@gmail.com> wrote:

Chief Market Strategist, ashwanigujral. talks to ET Now on the market outlook and trades to get into. 

What is the call on markets right now? 

It is possible that we will start underperforming global markets and even when we see a lot of green overnight, chances are that we will start well but in the second half of the day, we will start slackening out. So it is possible that the next couple of days, next week could be a bit positive but if at higher levels you are unable to cross 5000, then chances are that finally the market will start declining and this time, the decline will go past 4850. 

Today, a trading bottom of sorts may have been formed but the rallies from there will be extremely weak like we saw it happen today. Right now, Europe looks positive, maybe US also has a 150-piont rally. So you will see our market gap up 60-70 points but that would not get sustained at a higher level. 

We will underperform global markets, not go up when they go up and when they come down, we will go down much more than those markets. That is the sense we are getting because at 5100, this market the way it has turned does not show a lot of strength. 

How bad could it get for stocks like BHEL from hereon and is it still time to initiate fresh shorts? 

They have been in deep downtrends and last 8-10 days was a good pullback rally and we have seen that high pedigree stocks have also come down a lot. People should tend to buy these stocks only when they go up consistently and right now, it is not the right time. 

Maybe these stocks are basing out, that time will tell but as of now there is no evidence. BHEL could easily get down to 250 and maybe on a bad day even go lower. Similarly with L&T, it has completed its pullback. It is now moving down again and chances are that could as well test 1200-1220. 

So capital goods should not be your first choice, the first choices have to be the non-rate sensitive type defensive style consumption stories because consumption probably has not been affected as much as these investment group stocks have been. They would rally once RBI actually starts reducing rates. 

Your thoughts on stocks like Wipro and Infy and whether come next week we can still see sustainable gains in these stocks? 

The keyword here is sustainable. Yes as long as the global markets remain positive, tech would do better than other stocks but it is difficult to say that they will sustain these gains and keep moving higher. 

Wipro, targets of 435 to about 440 in a stable market are easily possible. On the downside, it should find support around 385. The only reason it is going up is because it got beaten up and was underperforming and now it is just catching up with the other stocks in the large cap IT. 

What is the call on Pantaloon? 

That is also going into an avoid category. You need the stock to cool off. You need all of this kind of news flow to die down and then see if the stock moves up. There is no chance that from 180 it moves up to 220 and then it goes back again because the news flow expected did not happen. 

It was in a downtrend earlier and that downtrend has just restarted. Most of these retail stocks should get it back to their lows because I do not see if over the next 2 years how any kind of FDI can happen and these will only move higher only once this kind of news actually happens. So retail also is going to go down with the rest of the market. 

Come Monday morning, what are the kind of traders you would undertake? 

You can look to buy something like an HPCL with a stop of about 288, target of about 305. Crompton Greaves post the pullback can be sold again with a stop of about 130, target of about 115 and Educomp has also had a bit of a rally. That can be sold with a stop of about 220, target of about 180. 

Some of the consumption names, you have been very bearish on VIP, does the call still remain a sell come Monday morning as well? 

That is what happens, that is what is happening with the Bank Nifty. Last year everybody was extremely bullish on banks and now when an overbought over-owned sector or a stock starts coming down, there may not be bad news but just that everybody has it and there are some big sellers trying to unload, levels of 90 are the next support. 

But I would not be surprised if it goes even lower and below 90 there is a straight plunge towards levels of 65-70. That is also possible but clearly there is no sign of any respite here.

On Sat, Dec 10, 2011 at 1:44 PM, kuch kuch kehna hai <kuchkuch...@gmail.com> wrote:

Merrill Lynch has upgraded Wipro to a Buy from Neutral and upped its target to Rs 470. This is triggered by its forecast of a rebound in earnings growth to 20% over the next 3 years

--



Karishma Suvarna

--
CA. Rajesh Desai

[RAJESH DESAI]

Jain Irrigation Systems fell  after the company said that a major fire broke out in its plastic pipe stocking yard situated in Jalgaon, Maharashtra on Saturday, 10 December 2011, evening.

On Mon, Dec 12, 2011 at 10:06 AM, kuku manmohan <manmoh...@gmail.com> wrote:

GAIL India has signed 20-year LNG sale, purchase agreement with Cheniere, USA.

On Mon, Dec 12, 2011 at 9:59 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Sun Pharmaceutical Industries rose after a subsidiary of the firm secured approval from US Food and Drug Administration to market a generic version of Ultram ER, Tramadol hydrochloride extended release tablets.

On Mon, Dec 12, 2011 at 9:49 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Tata Motors rose after the company's American depository receipt, or ADR rose 2.68% to settle at $18.04 on the New York Stock Exchange on 9 December 2011.

--
CA. Rajesh Desai

--
CA. Rajesh Desai

--
Manmohan Tandan

--
CA. Rajesh Desai

[RAJESH DESAI]

Sun Pharmaceutical Industries rose after a subsidiary of the firm secured approval from US Food and Drug Administration to market a generic version of Ultram ER, Tramadol hydrochloride extended release tablets.

On Mon, Dec 12, 2011 at 9:49 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Tata Motors rose after the company's American depository receipt, or ADR rose 2.68% to settle at $18.04 on the New York Stock Exchange on 9 December 2011.

--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

The rupee tanked by 56 paise to a historic low of Rs 53.40 per US dollar in early trade today due to persistent demand for the American currency from
banks and importers on the back of a higher dollar in overseas markets and weak domestic equity markets.

Andrew Middleton/Flickr

The rupee resumed lower at Rs 53.10/11 per dollar on the
Interbank Foreign Exchange, as against its previous close of
Rs 52.84/85 per dollar, and dropped further to an all-time low
of Rs 53.40 per dollar before quoting at Rs 53.27/28 per dollar at 1030 hours.

Sustained dollar demand from banks and importers in view of a stronger dollar in overseas markets and foreign capital outflows affected the rupee value against the dollar, a forex dealer said.

Dollar gains against other currencies overseas amid eurozone debt concerns also put pressure on the Indian rupee. The domestic currency had tumbled by 81 paise to close at a record low of Rs 52.84/85 per dollar in the previous session on strong demand for the American currency and strengthening
of the dollar against its rivals overseas.

During trade on Monday it had hit 52.87 after the industrial output index for October plunged 5.1 percent from the same month a year earlier, far worse than expected.

Dollar remained a safe haven amid a spate of bad news,  Brijen Puri of JP Morgan told CNBC TV 18 in an interview.

The rupee is the worst performing currency against the dollar among major Asian peers this year. Investors continue to remain bearish on the rupee, a Reuters poll last week showed.

Agencies

--
CA. Rajesh Desai

[RAJESH DESAI]

All the Essar group stocks are down but the worst hit seems to be Essar Shipping, which today morning hit a new 52-week low at Rs.20.35 and it currently at Rs.22. There remain around three time more sellers than buyers on the counter.

The stock is battered down, long with other Essar group stocks following news that the CBI has filed a charge-sheet in the 2G spectrum case against eight persons and entities, including the vice-chairman of Essar Group, Ravi Ruia, Anshuman Ruia and Director for strategy and planning, Vikas Saraf.

On Tue, Dec 13, 2011 at 10:05 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Rupee hits record low of 53.21 per dollar on worries over Euro debt crisis

On Tue, Dec 13, 2011 at 10:03 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Gati board has opened FCCB issue and plans to raise up to USD 22 million, reports CNBC-TV18.

The share touched an intraday high of Rs 30.80 and an intraday low of Rs 29.65. At 09:42 hrs the share was quoting at Rs 30.65, up Rs 1.15, or 3.90%.
 
It was trading with volumes of 44,463 shares. In the previous trading session, the share closed down 0.51% or Rs 0.15 at Rs 29.50. 

--
Manmohan Tandan

--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

OCT IIP – A DIRTY PICTURE!

By Ruma Dubey Circa Oct 2010: There was immense festive cheer and that was amply reflected in the IIP numbers. It had grown at its fastest pace in three months in October 2010, beating economists' estimates and driving away concerns over a slowdown in economic activity. Oct 2011: There entire IIP report card is painted red and there is only contraction all around, with only electricity in the green. What happened to the festivities this year? Infact consumer durables, which is usually good in Oct has also contracted. A shocker of a number indeed! PARTICULARS Oct’11 Sept’11 Aug ‘11 YoY IIP -5.1% 1.9% 4.1% 11.3% Consumer Durable -0.3% 8.7% 4.6% 14.2% Manufacturing -6% 2.1% 4.5% 12.3% Capital Goods -25.5% -6.8% 3.9% 21.1% Basic Goods -0.1% 4.5% 5.4% 9.8% Mining -7.2% -5.6% -3.4% 6.1% Electricity 5.6% 9% 9.5% 8.8% Consumer Non Durable -1.3% -1.3% 2.9% 5% Intermediate Goods -4.7% 1.5% 1.3% 9.7%                     Manufacturing output contracted to -6% and Oct is usually the best month for mining but given the issues faced by the sector today, it comes as no surprise to know that it has contracted to  -7.2%. Capital goods sector contracted to -25.5%. The only positive was electricity which grew at 5.6%. Clearly, we cannot expect the industry to run now without any policy action.  This is very disappointing and though one expected a decline, it was not expected to be so low.  The moment the numbers came in the index slipped into the red and the capital good stocks – L&T, BHEL, BEML, Punj Lloyd and entire bandwagon plunged.   What will RBI do now? Its primary concern remains inflation and data is expected to come in on 14th Dec. That number could decide the policy decision which RBI could make on 16th Dec. Interest rates going up is ruled out but given the all-round contraction, there is expectation that maybe a CRR cut is now fully justified. But it is not as much about money supply as it is about lack of any policy action.  Banks are holding excess SLR to the tune of 29%. CRR cut is not expected to come. Thus at this juncture, RBI will take a pause, a full pause. So the only good news is that we do not see any more rate hikes; the rate hike cycle is done with!  The bad news – growth is pretty precarious and unless action is seen - on mining, on coal, on bringing about a mood of optimism in the country, unless structural issues are cleared, we could continue slowing down further.  The negative growth in all goods – basic, intermediate, consumer durable, consumer non durables, all indicate a breakdown in consumer confidence. Thus apart from tackling structural issues, the Govt needs to work on building up confidence of the people, which if could be measured today, would have been at a negative too.

--
CA. Rajesh Desai

[RAJESH DESAI]

Rico Auto was at a 52-week low yesterday at Rs.9.26 and today, it is up 5.4% at Rs.10, with an intra day high at Rs.10.55. Volumes are pretty robust at over 79,000 shares being traded compared to around 37,000 shares traded over past two weeks.

The stock has bounced back today after it announced that it has sold its entire 475680 fully paid-up equity shares of Rs. 100/-each of the JV and subsidiary company, KRP Auto Industries to the other JV partner, Kailash Royal for a total consideration of Rs.20.30 crore. For Q2FY12, the company had done well, with a net profit of Rs.3.6 crore on a net sales of Rs.272 crore. Its net margins remain wafer thin at around 1%.


--
CA. Rajesh Desai

[RAJESH DESAI]

Excel Crop Care had hit a new 52-week low yesterday at Rs.126 and today, currently it is up almost 11.5% at Rs.143. There are over 8 times more buyers than sellers on the counter. Volumes are mammoth at over 11,000 shares being traded compared to around 2100 shares traded over past two weeks.

The stock literally shot through the roof today after news came in that the Supreme Court has allowed  export of unused stock of Endolsufan insecticide manufactured in the country. On September 30, SC had allowed the company manufacturing Endosulfan to export nearly 1,100 tonnes of the pesticide to meet their contractual obligations while maintaining the ban on its use and production. And this removal of ban brings relief to Excel which is India’s largest endosulfan manufacturing company. All companies around the world are evnetually expected to phase out use of endosulfan gradually and in the next year or two, we could see a complete phase out.

--
CA. Rajesh Desai

[RAJESH DESAI]

Larsen and Toubro has bagged road project order worth Rs 2164 crore,


--
CA. Rajesh Desai

[RAJESH DESAI]

A likely increase of import duty to 14 percent for power equipment has resulted in a smart move in BHEL



--
CA. Rajesh Desai

[RAJESH DESAI]

Petronet LNG board approved the expansion of Dahej terminal to 15 million metric tonnes per annum from 10 million metric tonnes per annum.

--
CA. Rajesh Desai

[RAJESH DESAI]

FII DERIVATIVES STATISTICS FOR 12-Dec-2011
	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores
INDEX FUTURES	68057	1628.72	78835	1864.03	488081	11451.28	-235.31
INDEX OPTIONS	892916	21571.47	948740	23038.00	1990885	47424.53	-1466.53
STOCK FUTURES	62790	1468.69	58890	1346.12	1119283	24512.36	122.57
STOCK OPTIONS	22760	506.37	22831	507.15	38323	833.38	-0.78
						Total	-1580.05

 

On Mon, Dec 12, 2011 at 5:05 PM, taiyeb ali <taiyebal...@gmail.com> wrote:

CBI books Ruias, Khaitans for cheating, conspiracy in 2G case

12 Dec 2011 | 04:07 PM

This is the third chargesheet in the case that has ripped through corporate and political India with vicious force, sending luminaries from both worlds to prison. The CBI alleges that in 2008, Loop was used as a front by Essar to collect more licenses and spectrum than was legally allowed. The licenses for Loop - 21 circles for about 1450 crores - were granted by A Raja, who was arrested in February for using his post as Telecom Minister to gift licenses to ineligible companies.

--
Best Regards,

Taiyeb Ali
786

--
CA. Rajesh Desai

[RAJESH DESAI]

Glenmark Pharmaceuticals said on Tuesday it has sought an arbitration in the US as Napo Pharmaceuticals has no basis for terminating a collaboration agreement with it to develop and market an HIV-associated diarrhoea drug.

Napo Pharma had terminated the pact on November 10, according to a press release posted the US-based firm’s website.

The move is a fresh hurdle to Glenmark's ambitious plans to exclusively market the drug, Crofelemer, in 140 countries. Reuters

The move is a fresh hurdle to Glenmark’s ambitious plans to exclusively market the drug, Crofelemer, in 140 countries.

Reacting to the news, shares of Glenmark declined more than 6 percent in early trade in a volatile Mumbai market. At 11:31 a.m, the stock was down 5.2 percent at 291 rupees.

Glenmark, along with US-based partners Napo and Salix Pharmaceuticals  has developed Crofelemer, the first ever drug developed by an Indian firm.

According to the licencing agreement, Glenmark holds the exclusive rights to distribute Crofelemer in 140 countries while Salix would sell it in regulated markets such as North America, Japan and Europe.

Napo Pharma was the initial developer of the molecule who licensed it out to Glenmark and Salix.

Glenmark, in a press release on Tuesday, vehemently denied Napo had any basis to terminate the agreement and that it was seeking a declaration from an arbitration panel that Napo’s claims of breach were unfounded.

The Mumbai-based firm, in August, had filed for arbitration claims against Napo Pharma to prevent the latter from distributing Crofelemer in Glenmark’s territories through relief agencies.

“We believe that the licensing fees and other payments received by Glenmark need not be paid back in case the development process for Crofelemer is terminated,” Nomura said in a note.

Glenmark in July received $15 million from Salix Pharma towards upgrading the manufacturing facility for Crofelemer and is expected to get $6.6 million in five equal instalment.

Reuters

--
CA. Rajesh Desai

[RAJESH DESAI]

With the Finance Minister saying that fiscal deficit is expected to be at least 5.25 percent markets have given back the lead it managed after European markets opened.



--
CA. Rajesh Desai

[RAJESH DESAI]

Markets have recovered sharply led by a swift move in banking counters. Sensex trades 180 points higher at 16051 while Nifty trades 50 points higher at 4819.

Banking counters have moved sharply higher with SBI currently trading at Rs 1790, up 1 percent, while Axis Bank has recovered to Rs 963 from the day’s low of Rs 940.35. Expectations of a CRR cut is resulting in short covering in the banking counters, as the central bank is expected to make the announcement on Friday.

Reliance is trading 2 percent higher as the Directorate of Hydrocarbon has submitted a compromise formula to the oil ministry. The stock trades at Rs 743.85.

--
CA. Rajesh Desai

[RAJESH DESAI]

Oil counters have fallen sharply after a finance minister comment. Finance minister rejecting additional subsidy to oil companies is expected to impact the financials of oil companies very severely. Oil companies have been prevented from increasing prices of subsidised diesel, kerosene and LPG thus adding to their losses. Companies had earlier said that they will not be able to produce beyond December, if they are not funded for their losses on account of selling subsidised products.

On Wed, Dec 14, 2011 at 1:09 PM, RAJESH DESAI <stock...@gmail.com> wrote:

FII selling seen in Sintex & Titan.FII are buying Crisil & Colgate.

--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

Arvind gets going

Last year, on 14th Dec, exactly a year ago, Arvind had hit a new 52-week low at Rs.46.05 and today, the stock is up almost 2.5% at Rs.81.75. Its 52-week high is at Rs.111.15, hit on 1st Nov 2011. The buzz is on account of the announcement of a JV with German firm, PD Fibre Glass Group, to manufacture glass fabrics for the industries in wind power, shipbuilding and auto sector. The JV company, Arvind PD Glass Composites, has been set up with 51% equity partnership of Arvind and 49% of PD Group. It will be a two phased project, costing Rs.80 crore over the next 5 years to manufacture 30,000 tonnes of glass fabrics. It hopes to generate revenue of Rs.500 crore in the first phase which it hopes to double on the second phase.

On Wed, Dec 14, 2011 at 10:56 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Areva T&D at new low

Areva T&D hit a new 52-week low today at Rs.140.90 and it currently remains over 20% down at Rs.157.60 with sellers outnumbering the buyers.  It opened at Rs.186.90, which remains its intra day high. The stock is facing relentless selling  on demerger on demerging its distribution (medium voltage) business operations into wholly-owned subsidiary, Smartgrid Automation.  Tomorrow, 15th Dec is the record date for determining shareholders of the company who would be entitled to receive on a proportionate basis, for every one fully paid-up equity share of Rs 2 each held in Areva T&D India, one fully paid-up equity shares of Rs 2 each of Smartgrid Automation.The stock is likely to be around Rs.145 levels on ex-basis.

--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

ICICI Bank may reduce Firstsource stake to 10%; stocks down

ICICI Bank may reduce its stake in Firstsource to 10% post new norms announced by RBI, reports CNBC-TV18.

Currently ICICI Bank is holding 18% stake.

On Wed, Dec 14, 2011 at 9:49 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Persistent weakness in rupee may boost IT shares. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. However, weak rupee will negatively impact shares of air carriers, public sector oil marketing companies and some automobile firms.

On Wed, Dec 14, 2011 at 9:32 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Pantaloon sees more exits, now Tibrewal resigns

The exodus of top talent at India’s largest retailer Future group continues with tough times taking a toll on its leadership. In the latest development Pankaj Tibrewal, chief operating officer (COO) of debt-laden Pantaloon Retail (PRIL), has resigned, reports Financial Chronicle.

On Wed, Dec 14, 2011 at 9:28 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Morning Market Commentary - 14 Dec 2011

The STI fell 0.6% to 2685, Euro Stoxx 50 fell 0.37%, the S&P500 fell 0.87% to 1225.

US retail sales advanced 0.2%mm, below the consensus 0.6%. We remain skeptical of the consensus verdict that the US will post 3% growth next year as we see the gradual withdrawal of fiscal supports being a drag on disposable incomes, and a rapidly slowing global economy as headwinds to US mfg. This month, capex incentives, payroll tax cut, extended unemployment benefit, are all up for renewal, so expect volatility in the coming weeks as these measures get debated. If they do not get renewed, expect a strong selloff.

Crude Oil is starting to be a worry for us, as threatened sanctions on Iran due to their supposed pursuit of nuclear capability risks the closing of the Straits of Hormuz, and an attack by Israel. Crude advanced by over 2% last night and hovers at the $100 mark, and has been trending quite the opposite from industrials and agris, which is to us a red flag for geopolitical risk as commodities tend to be led by economic growth, supply constraints notwithstanding.

We remain bears on the larger trend for the STI and S&P500 unless (1) the Eurozone has fiscal union that addresses risks to growth, and (2) lead econ indicators globally flip positive.

Phillip Securities Research

--
Manmohan Tandan

--
Manmohan Tandan

--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

[RAJESH DESAI]

Welspun Corp up almost 4%

Welspun Corp is up today almost 4% at Rs.82.05, closer to its intra day low of Rs.82.60. With over 1.65 lakh buyers on the counter, volumes are robust at almost 4 lakh shares changing hands since morning. The stock is up after the company announced having repaid Foreign Convertible Bonds of $150 million, which were due in 2014,  this is seen as a big  positive by the market and it can rise to Rs.88-90 in this series.

--
CA. Rajesh Desai

[RAJESH DESAI]

Two UBS bankers tried to create an offshore vehicle through which one of India’s most powerful businessmen could illegally invest in securities at home, according to evidence heard in a London tribunal.

Anil Ambani, whom bank executives described as a “mega-client”, was the ultimate owner behind a Mauritius-based vehicle called Pleuri, the tribunal heard.

Pleuri was established with the specific objective of investing in Indian stocks, according to evidence presented by the UK’s financial regulator in a case against the former head of UBS’ London-based India desk. Indian nationals and companies are not permitted to invest in Indian securities through foreign institutional investors.

Details of the controversial structure have emerged in the case of Sachin Karpe, former head of the desk that managed Indian client portfolios at UBS’s wealth management division in London. Mr Karpe is challenging a £1.25m fine from the Financial Services Authority.

Mr Karpe and the other UBS banker, who cannot be named for legal reasons, have since left the Swiss bank. They allegedly misled UBS’s compliance team by maintaining that Pleuri was owned by a wealthy French couple. UBS ultimately refused to sanction the structure.

“The source of funds [...] was plainly the Ambani family,” Jonathan Crow QC for the FSA told the tribunal on Tuesday.

“[Mr Ambani] asked for a transaction and Sachin Karpe enabled it,” said Michael Blair QC, Mr Karpe’s barrister. “There was no suggestion that the client himself was damaged. The most that can be thrown at [Mr Karpe’s] door was that he probably ought to have told the client that the bank would not deal with him because the transaction was not legal in India.” Mr Blair described the FSA’s case as “fat and splurgy”.

Mr Ambani, who is not represented at Mr Karpe’s tribunal hearing, has not been accused by the FSA of any wrongdoing. After the hearing, phone calls and emails to his spokesmen were not immediately returned.

The FSA alleges that in addition to trying to establish the offshore structure for Mr Ambani, Mr Karpe made unauthorised trades on other clients’ accounts. To hide losses, Mr Karpe allegedly arranged loans from other clients, falsely promising them that the loans would be guaranteed by UBS at an above-market rate.

Mr Karpe is not appearing at the tribunal and not contesting an FSA ban. He claims he did not know that the Pleuri structure would be illegal. Mr Karpe is arguing against the size of the fine, and maintains the FSA overreached its powers.

After an investigation by the FSA, UBS paid a £8m fine in 2009 for not preventing the unauthorised trades. It also paid $42m in compensation to clients. UBS is supporting the FSA’s case against Mr Karpe and two other ex-employees. Indian authorities have also launched their own investigations.

Mr Ambani entered into a settlement with the Securities and Exchange Board of India in January over allegations that his group misrepresented its end-of-year financial statements and violated overseas borrowing rules, without admitting any liability. As part of the Rs500m (£6.1m) settlement, the billionaire and his Reliance Infrastructure and Reliance Natural Resources companies cannot trade stocks on Indian exchanges through December 2012.

On Wed, Dec 14, 2011 at 2:52 PM, taiyeb ali <taiyebal...@gmail.com> wrote:

Retail counters Pantaloon and Provogue have touched new 52 week lows, below their price from where they moved when the retail FDI clearance was announced.

On Wed, Dec 14, 2011 at 2:45 PM, yamini chopra <chopra...@gmail.com> wrote:

Tata Steel trades 3.3 percent lower at Rs 379.6 after Moody’s said that the steel company is the most vulnerable among the Tata group of companies as rupee depreciates.

On Wed, Dec 14, 2011 at 2:44 PM, yamini chopra <chopra...@gmail.com> wrote:

On Wed, Dec 14, 2011 at 2:37 PM, s s <san...@gmail.com> wrote:

BUT - if rupee depreciates without much outflow right now, what will happen when fccb & other related outflows start from march till next 15 months !!!

On Wed, Dec 14, 2011 at 2:30 PM, yamini chopra <chopra...@gmail.com> wrote:

Credit rating agency Moody's Investors Service today, 14 December 2011, said that the sharp decline in the value of the Indian rupee against the dollar is generally exerting only a moderate impact on rated Indian companies. Risks for companies holding large amounts of dollar denominated debt are also manageable in the near term, given that debt maturities are limited for this time frame, Moody's said in a new report. This means Indian companies rated by Moody's do not have a significant dollar outflow at a time when the Indian rupee is losing ground. Moody's latest assessment comes even as the local currency continued its recent steep slide, recording a new all-time low against the dollar for a third straight day today, 14 December 2011.

On Wed, Dec 14, 2011 at 1:43 PM, kuku manmohan <manmoh...@gmail.com> wrote:

Pennar Industries clocked volume of 44.14 lakh shares by 13:30 IST on BSE, a 59-times surge over two-week average daily volume of 75,000 shares. The stock rose 4.04% to Rs 39.95.

--
Manmohan Tandan

--
Best Regards,

Taiyeb Ali
786

--
CA. Rajesh Desai

[RAJESH DESAI]

Excel Crop Care slides as court says ban on production of endosulfan continues

Excel Crop Care tumbled 5.74%  profit booking, following Tuesday's 12.6% rally that had materialized ahead of a Supreme Court ruling on export of endosulfan formulation.

On Wed, Dec 14, 2011 at 1:27 PM, kuku manmohan <manmoh...@gmail.com> wrote:

Tata Communications rose on reports the Department of Telecom has circulated a Cabinet note to various ministries for their comments in 15 days for selling 770 acres of surplus land of VSNL.

On Wed, Dec 14, 2011 at 1:23 PM, Manish Joshi <indianequi...@gmail.com> wrote:

All these ministers must be shorting the oil counters before announcement. But be careful they can change their statements easily and people can get trapped in shorts. Such things are common in sugar sector as well.

--
Manmohan Tandan

--
CA. Rajesh Desai

[RAJESH DESAI]

CASH IS KING?

By Ruma Dubey Defending the contraction in Oct IIP numbers, our Finance Minister, Pranab Mukherjee stated in the Parliament today that there was no policy paralysis and what we were experiencing was more to do with the turmoil around the world, especially Europe. So the current weakness in the Indian economy is directly attributed to the recession in Europe. Without giving much credence to these utterances of the FM, what comes forth is more ominous – the recession in Europe is now a reality? India did just fine when USA was into recession but today, with Europe into recession, though not yet ‘officially’ declared, we are having major issues. When USA was in recession and Europe was lackluster, India was clocking a GDP over 9%. At that time, we were told that India is domestically strong and hence not affected. What happened this time around? Domestic and global weakness, double whammy? Most of the analysts who have come on TV have seemingly predicted doomsday and bulls are nowhere in sight. Many have stated that Europe is already into recession while some say it is getting into recession. Difficult times are expected to continue either till first half of 2012 or entire of 2012. Defaltion is another scary word, constantly raising its head. The underlying truth through all – Europe and recession are currently inseparable. But if Europe gets into recession, what does it mean for India, for the world? Recession means slowdown in overall demand and that affects exports. As per 2010 data, Russia’s exports to Europe were to the tune of 12.5% of its GDP. China comes second at 5.3%, followed by Brazil at 2.1%. US exports are at just 1.7% and Japan at 1.6%.  Europe accounts for 26% of India’s total exports but most hit could be the IT sector, which shifted focus to Europe when USA fell in 2008. Today, Indian IT services and BPO companies earn around 30% of their total export revenues from Europe. The Big 3 - TCS, Infosys and Wipro earn anywhere between 23 to 26% of their total revenues from Europe. Tech Mahindra is worst placed with European exposure to the extent of 59% of its revenues.  But IT firms feel that the fallout in Europe could be made up by demand from USA and also the weaker rupee vis-à-vis the US dollar. Overall, at least a 10% fall in exports to Europe from India is estimated. Apparel makers, who also share a large bite of the European pie with IT, are having serious bouts of starvation. Though many have changed focus to domestic markets, it is not enough to cover the deficit. Engineering, leather goods and electronics are the other sectors which could be affected by European recession. And this hullaballoo about deflation? Deflation in simple economics means falling prices; so isn’t that a good thing? After all everyone loves it when prices fall. But deflation in recessionary times is not good. Just as inflation reduces the value of money, deflation increases the value and thus people do not want to spend it, prefer to sit on the cash. People feel that prices could come down further and hence wait. Companies are also likely to sit on cash as they feel it is less profitable to produce as it gives them lower real returns. They cut down on production and new investments and spike up unemployment. Thus deflation feeds recession which is what led to the Great Depression. Well, we are not getting into a deep recession like that, that’s for sure. But yes, the road ahead over the next 2-3 quarters looks extremely uphill. Things are so lucid, we do not know which way things will head. And in such times, it is best to sit on the cash. Yes, cash is the king. India has its own set of problems, notwithstanding Europe. Sentiments are rock bottom. In 2008, despite the collapse, moods were robust and we could tide over everything. But today, moods are pessimistic and that first needs to be corrected. Getting a few infra projects completed, showing people things are moving is probably what will help. But who will do that?

--
CA. Rajesh Desai

[RAJESH DESAI]

Electrotherm gets “hot”

Electrotherm (India) is up 3% at Rs.156, closer to its intra day high at Rs.158. Volumes are extremely robust at over 85,000 shares being traded today compared to 16,000 shares over past two weeks. The stock is up in the green after it announced that unit of France's Saint Gobain will pay Rs.950 crore to buy Electrotherm (India)'s ductile iron pipes business. It will also buy 100 percent of Electrotherm's unit that runs the pipes business and pay additional value of working capital at the time of deal closure. The transaction will enable Electrotherm to focus on its core businesses of engineering and steel and also reduce debt.

On Thu, Dec 15, 2011 at 10:08 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Rupee dropped to another record low of 54.30 per dollar as concerns heightened slowing domestic growth will spur further capital outflows.

On Thu, Dec 15, 2011 at 10:07 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Shares of three public sector oil marketing cos are firm as crude oil traded near the lowest price in more than five weeks in Asian electronic trading today.

On Thu, Dec 15, 2011 at 9:56 AM, RAJESH DESAI <stock...@gmail.com> wrote:

FII DERIVATIVES STATISTICS FOR 14-Dec-2011

	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores

INDEX FUTURES	66968	1583.25	80377	1894.00	518478	12118.21	-310.75
INDEX OPTIONS	803090	19188.52	794249	19061.38	2038596	48546.31	127.14
STOCK FUTURES	64908	1499.53	67049	1522.64	1136185	24783.98	-23.10
STOCK OPTIONS	24465	551.77	24015	535.14	41454	920.23	16.63
						Total	-190.08

On Wed, Dec 14, 2011 at 5:59 PM, kuku manmohan <manmoh...@gmail.com> wrote:

A news agency today, 14 December 2011, quoted an unnamed senior finance ministry official as saying that the government does not intend to curb capital outflow to help arrest the rupee's slide. The comments come even as Finance Minister Pranab Mukherjee today, 14 December 2011, admitted that capital outflows are a matter of concern. Reserve Bank of India Deputy Governor Subir Gokarn recently said the central bank will use all possible measures, including strategic capital controls, if the risk of the rupee depreciating escalates. The RBI has said it will issue a "definitive statement" on the rupee at its mid-quarter monetary policy review on Friday, 16 December 2011.

--
Manmohan Tandan

--
CA. Rajesh Desai

--
CA. Rajesh Desai

--
Manmohan Tandan

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CA. Rajesh Desai

[RAJESH DESAI]

No new toy!

Every Christmas , there is always a new toy or a new gadget in the USA. It is touted to be the ‘hottest’ gift for Christmas and has become almost a part of tradition. But this time around, this tradition could be broken. There is simply no new toy for Christmas shoppers! Shopkeepers are stocking less, leaning on classic items rather than new ones and possibly discounting less in the final days before Christmas. More than half of parents recently surveyed by UBS and America’s Research Group said they felt there was no must-have toy this year, and more than one-third said it was hard to find toys and gifts because nothing was new. Why no news toys? Retailers are blamed for this, fair and square. After loading up on toys in 2010, major stores like Wal-Mart had loads of unsold stock that had to be liquidated in the January time frame. The hit toys currently comprises of an ‘ageless’ list – Legos, Hot Wheels, Barbie. The news is that stock with most retailers has come down sharply and that could mean toys this Christmas could get even more expensive, with no discounts expected.

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CA. Rajesh Desai

[RAJESH DESAI]

Domestic mutual funds have sold Fortis Health, Sintex, GSFC, 3iinfo, Deepak fert. in the past few days in large qty. to meet redemption pressure.


--
CA. Rajesh Desai

[RAJESH DESAI]

FII selling huge lots in Mcleod Russel.

On Thu, Dec 15, 2011 at 2:22 PM, RAJESH DESAI <stock...@gmail.com> wrote:

Titan Industries fell 5.% on concerns that a slide in gold prices will reduce valuation of gold inventory that the company holds.

--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

In line with expectations, Sanjeev Prasad, executive director and co head, Kotak Institutional Equities also expects Reserve Bank of India (RBI) to keep policy rates unchanged today. Speaking to CNBC-TV18, he said that it is unlikely for RBI to cut CRR today.

“As far as the immediate short-term policy announcement today goes, we are not expecting much. From an economic perspective, I don’t see really much of an impact of this, he added.

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CA. Rajesh Desai

[RAJESH DESAI]

FII DERIVATIVES STATISTICS FOR 15-Dec-2011

	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores

INDEX FUTURES	65656	1532.48	95566	2230.45	549992	12829.16	-697.98
INDEX OPTIONS	963372	22741.94	945240	22364.27	2066372	49004.97	377.67
STOCK FUTURES	80926	1855.77	83687	1862.25	1158442	25228.50	-6.48
STOCK OPTIONS	23921	535.44	23223	515.17	43492	942.62	20.27
						Total	-306.52

 

On Thu, Dec 15, 2011 at 3:30 PM, kuku manmohan <manmoh...@gmail.com> wrote:

Switzerland has reaffirmed that it will maintain the peg of its currency Franc at 1.2 times that of Euro. PMI and manufacturing data coming out of Germany and France too has been encouraging.

--
Manmohan Tandan

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CA. Rajesh Desai

[RAJESH DESAI]

The RBI sold dollars through public sector banks and announced steps to curb speculation in the foreign exchange market by banks and corporates.



--
CA. Rajesh Desai

[RAJESH DESAI]

HMT seeks good times

HMT had hit a new 52-week low yesterday at Rs.28.20 and today it is currently up 8.27% at Rs.30.75, with an intra day high at Rs.31.35 and low at Rs.29.50. Its market cap stands at Rs.2330 crore. It is presently the top gainer on the mid cap index. The stock is in news today after the company submitted at Rs.981 crore revival plan to the Govt.  It plans to use Rs.320 crore for capex, Rs.135 crore for clearance of old liabilities, Rs.22 crore for 2 years as bridge loan. It has also asked for Rs.365 crore for paying off old debts and Rs.135 crore as interest waiver. It is also seeking a pay hike and wants to extend retirement age to 60 years from the present 58 years. And yes, it also hopes to increase tractor production from 10,000 units to 30,000 in 5 years.

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CA. Rajesh Desai

[RAJESH DESAI]

Titan Industries fell 5.% on concerns that a slide in gold prices will reduce valuation of gold inventory that the company holds.

--
CA. Rajesh Desai

[RAJESH DESAI]

On Fri, Dec 16, 2011 at 9:34 AM, RAJESH DESAI <stock...@gmail.com> wrote:

PSU OMCs, however, did not raise petrol price as they failed to muster clearance from the oil ministry. According to reports, the companies are expected to take another shot at getting political clearance today (16 December 2011).

On Fri, Dec 16, 2011 at 9:24 AM, kuku manmohan <manmoh...@gmail.com> wrote:

The STI fell 1.4% to 2635, Euro Stoxx 50 rose 0.86%, the S&P500 rose 0.32% to 1215.

On the bright side of data, US unemployment claims may have decisively trended below the 400k mark to 366k, indicating much reduced pace of firings. But global output surveys and data continue to be weak: Flash PMI readings for manufacturing indicate that China sees its second straight month of contraction, albeit at a slower pace, while flash readings for Eurozone manufacturing and services were for their fifth and fourth month of contraction respectively, also at a slower pace. US industrial production for Nov declined 0.2%m-m with manufacturing declining 0.4%m-m.

Although pace of declines are weakening, these could very well strengthen again given: collective austerity by the Eurozone; a rapidly cooling China; and a US fraught with policy risk. We are looking for a synchronised upturn in new order data to challenge this view.

We remain bears on the larger trend for the STI and S&P500 unless (1) the Eurozone process for fiscal integration actually addresses decisively its suboptimal growth path, and (2) lead econ indicators globally flip positive.

Phillip Securities Research

--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

 Apollo Hospitalsrises after the company clarified that one of the promoters has been given shares at a discounted price as compared to the current market price on account of an old warrant issue.

On Fri, Dec 16, 2011 at 10:16 AM, RAJESH DESAI <stock...@gmail.com> wrote:

R Systems 'locked' again!

R Systems continues to hit the roof even today. The stock was locked at the 5% upper circuit yesterday at Rs.119.20 and today, the moment it opened for trade, it was once again locked on the upper circuit at Rs.125.15, up 5%. The stock is up after one of its major stake holders, Bhavook Tripathi, holding 23.82% stake in the company, made an open offer to acquire an additional 26% of the expanded paid up equity share capital of the company, at Rs.122 per share.

On Fri, Dec 16, 2011 at 10:13 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Jet Airways soars on ATF cut

Jet Airways is up 2.3% at Rs.222.75, with an intra day high and low at Rs.225 and Rs.218.60 respectively. There are currently more buyers than sellers on the counter. The stock is soaring on revision of the jet fuel prices. HPCL, BPCL and IOC revise aviation turbine fuel (ATF) every 1st and 16th of the month. The price of ATF in Delhi was cut by Rs 833 per kilolitre (kl), to Rs 63,739 per kl with effect from midnight 15 Dec. With ATF making for over 50% of the total operating cost of the airlines, this is good news for the aviation stocks, even if temporary.

On Fri, Dec 16, 2011 at 10:08 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Spanco jumped 10%  after the company said its business process outsourcing arm has been granted a 5-year tax holiday by the Nigerean government for outsourcing activities.


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CA. Rajesh Desai

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CA. Rajesh Desai

--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

Shares of software services exporters turned negative on Friday after sharp appreciation in the rupee since yesterday. Intervention of the Reserve Bank of India drove the rupee higher.

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CA. Rajesh Desai

[RAJESH DESAI]

Reliance Capital (R-Cap) is reportedly in talks with UTV founder-promoter Ronnie Screwvala to scale up its stake in UTV News much beyond the 18% it holds at present. UTV News runs English business channel Bloomberg UTV. R-Cap, part of the Reliance Anil Dhirubhai Ambani (ADA) group, may get a controlling stake in the venture if the negotiations fructify. According to reports, the company is also open to buying out the entire 66% stake held by Screwvala.



--
CA. Rajesh Desai

[RAJESH DESAI]

Dunlop India is up after the company announced that it has put its one acre Dunlop House property at Worli for sale. Property market sources said the company was looking at a price of around Rs 400 crore. The building located in a prime area, near Podar hospital, was put on the block two months ago. The one acre plot is said to have a development potential of close to 80,000 sq ft. The company had tried to sell this plot earlier too, hopefully it will be successful this time around.

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CA. Rajesh Desai

[RAJESH DESAI]

FII DERIVATIVES STATISTICS FOR 16-Dec-2011

	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores

INDEX FUTURES	140331	3287.78	114623	2676.63	551768	12555.30	611.14
INDEX OPTIONS	1124092	26760.90	1181358	28191.76	2069050	48084.04	-1430.86
STOCK FUTURES	107335	2376.84	113292	2559.66	1169139	24807.63	-182.83
STOCK OPTIONS	39452	862.94	40724	913.27	46508	1002.31	-50.33
						Total	-1052.88

On Sat, Dec 17, 2011 at 11:55 AM, RAJESH DESAI <stock...@gmail.com> wrote:

FDI in retail: Rahul Gandhi says it's pro-farmer

LUCKNOW: Congress party scion Rahul Gandhi has broken his silence to give an unequivocal backing for allowing foreign companies into India's supermarket sector, brightening hopes the government will revive the proposal from its present comatose state soon after the Uttar Pradesh elections.

Addressing farmers in the potato belt of Farrukhabad on Friday, Rahul called the proposal to allow 51% foreign direct investment in multi-brand retail as a "pro-farmer" measure and termed parties, especially regional rivals such as the Bahujan Samaj Party and Samajwadi Party, that had opposed it as "anti-farmer".

His intervention, 10 days after the government was forced to freeze the move after it ran into a storm of protests, scotches speculation of a possible rift on the issue between the government and the party. It could also provide a much-needed shot in the arm for Prime Minister Manmohan Singh by forcing opponents within the Congress to fall in line when the government plans to revive the proposal next year.

Earlier this week, the PM had said in an interview with Bloomberg that the government would revive the move after the state polls. Rahul's comments on Friday were music to the ears of several industry players, some of whom had been hoping for the measure to rope in foreign partners and pare debt. "It's a very big thing, considering both Rahul Gandhi as well as farmers are keen for FDI," said Kishore Biyani, CEO at Future Group.

"It shows more and more endorsement of key people for opening up (retail) FDI and the political will to open it." Farrukhabad appeared well-chosen because local farmers in this region, just as in Punjab, which also goes to polls early next year, are faced with a glut and are incensed at receiving just a tenth of the retail price of the crop.

Many farmers have reportedly dumped their produce as they don't find it feasible to bear the transport cost to mandis, where the crop fails to fetch remunerative prices anyway. Rahul reminded the farmers that had FDI been allowed, they would have got better prices.

He said while potato chips sell for Rs 10 a packet, farmers are not even gettingRs 1 for their produce. Moreover, he said, farmers wouldn't have to see 60% of the crop go waste just because they fail to sell it in time.

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CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

[RAJESH DESAI]

RBI TAKES A BREAK, FINALLY!

By Ruma Dubey There was a buildup of expectation that RBI will reduce the repo rates and the CRR. This, though economically made no sense, was expected to be done by RBI to build up a sense of optimism in the markets. There was a murmur that ‘political factors’ would overrule economics and RBI will start reducing rates. But RBI stuck to its stance. The pause is the perfect balance between growth and inflation at this juncture. Rate cut was just not going to happen. For the market to build-up on an unlikely wish and then fall after it does not come true, just does not make sense. To then mouth “not as per expectations” is being immature; too naïve. RBI taking the much needed pause is the perfect policy action.  Food inflation on a MoM has fallen 2% and that has happened for the first time. Finally after a spate of 13 rate hikes, food inflation did let up. Seasonally too, this is the time when vegetables and fruits cost lower. But after 13 rate hikes, assuming it was RBI’s rate cuts finally at work, if the food inflation has come down, how does it then justify lowering of rates now? When a house is on fire, water has been bombarded on one portion of the house and the fire, on that portion alone is showing signs of dissipating; does that mean rescue operations should be abandoned? RBI did the perfect economic thing. The market, as expected, fell after this pause but a statement in the policy stating that it would now be looking at a reversal of policy stance in the coming days gave some comfort. This means that rate cut did not happen now but it will start happening soon. There is light showing at the end of the tunnel and yes, we just need to get over this dark patch for now, good days lie ahead! RBI too has started looking at the growth rates coming off and that is good news. This means that RBI will now start shifting its focus to growth rates and that is good news for the market.  We are over the peak of the high interest rate cycle and soon, we could start seeing some easing.  CRR really did not warrant a rate cut as the liquidity situation remains good; companies have the money but nowhere to deploy it! RBI has stated that it does not want to speculate on when the rate cuts will start happening. This is a good statement as inflation, on fuel and manufacturing front remains high. So one does not know if inflation will indeed moderate. There is real concern of fiscal deficit overshooting and this could also push up costs as borrowings will go up. Liquidity might be comfortable now but going ahead, that might soon change. So a CRR reduction in January seems imminent. RBI has given the signal that rate cuts will happen but it will go slow, continuing to keep a hawkish eye on inflation. After so many months of taking action to cut inflation, it will not just let go. Yes, this is an explicit change in stance – from inflation to growth. YoY inflation rates will be lower due to lower base effect. RBI will ease rates if growth continues to fall off but it will not be premature.  And it could do that mainly through CRR cut but might not be in a hurry to cut rates. At this juncture, talking about rate cuts would be like shooting in the dark. We need to look at the IIP and inflation numbers in the coming months, and that is what could give us an indication about where RBI will go in January. For now, taking a pause was the best thing to do. It is heartening to know that RBI did not allow political pressures to interfere with its policy stance and that, in today’s time, is extremely credible.

--
CA. Rajesh Desai

[RAJESH DESAI]

Wockhardt down over 4%

Wockhardt is down over 4% at Rs.321.50, with an intra day high and low at Rs.333.60 and Rs.317 respectively. Over 31,000 shares have changed hands since morning, valued at Rs.99 lakh. The stock is down today after the Bombay HC granted bondholders time to reply to Wockhardt's anti-suit injunction. The company had challenged the trustees' move to approach another jurisdiction in the case since the same case had been filed at the Bombay court. The trustees had filed a similar suit related to FCCB default in a UK court in October.  The company owes Rs 421 crore to bond holders, including interest and redemption premium.

--
CA. Rajesh Desai

[RAJESH DESAI]

Chetan Ahya of Morgan Stanley expects fiscal deficit for FY12 to come in at 6%. Speaking to CNBC-TV18, he says, “Including off-budget expenses, the figure could be nearly 9% of GDP.”

Ahya thinks that RBI’s move to deregulate NRE deposit rate is a positive and that should reduce fiscal deficit going ahead.

The rupee however is likely to see some pressure. “Currencies of all emerging markets that have high current account deficit are under pressure now,” he says. According to Ahya, the direction of rupee will nonetheless depend on global risk appetite

On Mon, Dec 19, 2011 at 11:09 AM, RAJESH DESAI <stock...@gmail.com> wrote:

Shriram EPC buzzing

Shriram EPC opened the day high at Rs.93.20 and though it sustained at those levels for some time, it has since then slipped to Rs.91, which is the day’s low point and also the 52-week low it had scaled on 16th Dec. But at these levels, there are over 4300 buyers versus 378 sellers. The stock is buzzing today after it announced that a consortium led by the company has won an order worth Rs 488 crore from NMDC.  The order entails installation of a by-product complex, including effluent treatment plant, associated to NMDC's steel plant in Chhattisgarh. The project is scheduled to be completed in 30 months.

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CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

[RAJESH DESAI]

Orchid Chemicals and Pharmaceuticals has touched a 52-week low of Rs 113.65.

Orchid Chemicals has raised USD 100 million via ECB for FCCB redemption


--
CA. Rajesh Desai

[RAJESH DESAI]

HCL Tech hardens on outsourcing pact with AstraZeneca

As per the contract, HCL Technologies (HCL) will be responsible for the provision, management and transformation of AstraZeneca's global Hosting and Collaboration environment. As part of the five-year engagement, HCL will be responsible for managing AstraZeneca's entire Data Centre environment across over 60 locations globally, including hosting and migration of some of the existing large Data Centers into state-of-the-art facilities. In addition, HCL will manage AstraZeneca's global Collaboration environment, including Email, Messaging and Collaboration Services for users worldwide. HCL will also deliver transformational projects including Server Virtualisation, Storage and Backup transformation and implementation of the hybrid cloud, HCL said in a statement.

Commenting on the development, Mr R Srikrishna, Executive Vice President and Head - Global Infrastructure services, HCL ISD, HCL Technologies said, "In today's economic environment, organizations across the world are facing unique challenges of rising operational and input costs, demanding customers and changing regulatory environment. More than ever, organizations are looking at partners who create value while managing these challenges. We are delighted to partner with AstraZeneca in their technology transformation journey. This win is a testimony to HCL's leadership in Global infrastructure services market and its critical investments in developing next generation Intellectual properties such as myCloud™ and MTaaS™. We continue with our commitment to Infrastructure outsourcing market and focus on large, complex & transformational engagements."

On Mon, Dec 19, 2011 at 9:45 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Indian 10-year sovereign notes denominated in rupee yielded215 basis points more than similar  maturity Indonesian rupiah debt on Dec. 16, after touching an unprecedented 277 basis points on  Nov. 14.

On Sun, Dec 18, 2011 at 10:10 AM, karishma suvarna <karishma...@gmail.com> wrote:

Traders will start building positions based on Q3 December 2011 results which will start trickling from the second week of January 2012. As per reports, advance taxes for the third quarter from corporates headquartered in Mumbai have risen 10%. Cements and pharma companies have reported surge in advance tax payment for the third quarter.

On Sun, Dec 18, 2011 at 9:58 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Last week 3iInfotech's rating was downgraded by CRISIL to junk status, barely four months after it had re-affirmed AAA rating in August. How can this happen? Rating upgrades or downgrades are in steps, not in jumps.  

On Sat, Dec 17, 2011 at 4:31 PM, karishma suvarna <karishma...@gmail.com> wrote:

Tulsian told CNBC-TV18, “All NBFCs have been giving a scheme of Monday to Friday to the traders that you can buy the stocks on Monday and you have to square it off by Friday and the kind of stocks which we have seen corrections again maybe Delta Corp , Arvind , Axis Bank , L&T , Educomp , these are generally the darling of the traders or of the short-term investors because there is always been feeling that these stocks will bounce back on a weekly basis and they will be able to make some money. So because NBFCs risk management system has become very cautious and they need to square off all the trade, so probably that could also be one of the reason apart from the concentrated selling by the European fund or something which just while back you have said. So those could may have added fuel to the fire.”

On Sat, Dec 17, 2011 at 2:07 PM, kuku manmohan <manmoh...@gmail.com> wrote:

Market Outlook: "Weakness to persist"-Edel

• At the current level of 15,500, the Sensex trades at a PE of 14.03x FY12E earnings estimate and 11.74x FY13E earnings estimate.
  
  

• At 14.03x, we trade below average valuations of 15.4x 1 year forward earnings.
  
  

• The recent round of EPS downgrades have more severe in India as compared to global peers.
  
  

• Growth slowdown has intensified with Q2 GDP growth coming in at 6.9% and IIP numbers also point to slowdown ahead
  
  

• Although valuations are apparently cheap, the major driver in the short term would be global and local macros.                    

--
Manmohan Tandan

--



Karishma Suvarna

--
Manmohan Tandan

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Karishma Suvarna

--
Manmohan Tandan

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CA. Rajesh Desai

[RAJESH DESAI]

Borosil Glass up on buyback

Borosil Glass Works is up 6.3% at Rs.820 after having scaled an intra day high at Rs.823.90. It opened at Rs.793, which was the day’s low point. At this point, there are over 20,000 sellers on the counter vis-à-vis around 1400 buyers. The stock is up in the news today as it has commenced buy back of its shares at maximum buy back price of Rs 850 per equity share. The last date for the proposed buy back would be November 10, 2012 or when the company completes the buy back to the extent of 9,63,928 equity shares, whichever is earlier.

On Mon, Dec 19, 2011 at 10:12 AM, karishma suvarna <karishma...@gmail.com> wrote:

The Union Cabinet on Sunday approved the draft of the path-breaking National Food Security Bill which seeks to provide subsidised foodgrains to over half of India's 1.2 billion population. The bill was a part of the Congress manifesto for the 2009 general elections and seeks to combat widespread hunger in the country. The bill is likely to cost Rs 2 lakh crore annually for the government.

--



Karishma Suvarna

--
CA. Rajesh Desai

[RAJESH DESAI]

Mahindra Satyam reboots

Mahindra Satyam, which despite the name change, on the BSE goes under its old name of Satyam Computer, is up in the news today. The stock is up over 3.2% at Rs.65.25. It has cooled off a bit from the day’s high point at Rs.68.10. More sellers than buyers currently dot the counter. The stock is up on news that Mahindra Satyam and Tech Mahindra, are close to appointing merchant bankers and accounting firms to value the two businesses for an eventual merger. Post the merger, the new entity will emerge as the sixth largest software exporter of India, with a combined revenue of $2 billion.

--
CA. Rajesh Desai

[RAJESH DESAI]

In an interview to CNBC-TV18, Nirmal Jain of IIFL warned that the Sensex may tank to 12000 to 13000 levels. He is worried that buying interest is quite low as there are very few positives to cheer market while the foreign investors are troubled about the government’s populist measures.

As an investment strategy, Jain prefers exposure to defensives like consumers, pharma and IT stocks. He advises to avoid rate sensitives including capital goods.

--
CA. Rajesh Desai

[RAJESH DESAI]

HNI Investors are selling Aditya Birla Nuvo since last week.
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CA. Rajesh Desai

[RAJESH DESAI]

Sharad Kantilal is again active in Tata Cofee as a bull.

On Tue, Dec 20, 2011 at 10:12 AM, RAJESH DESAI <stock...@gmail.com> wrote:

KNR Constructions rises after the company said it won a highway road project worth Rs 620 crore from GMR Projects and GMR Kishangarh Udaipur Ahmedabad Expressways.


--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

FII DERIVATIVES STATISTICS FOR 19-Dec-2011

	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores

INDEX FUTURES	93596	2125.27	138233	3132.07	545939	12322.98	-1006.80
INDEX OPTIONS	906329	20995.84	905047	21048.91	2083888	48018.10	-53.07
STOCK FUTURES	91353	2021.53	94550	2049.03	1183716	24946.39	-27.51
STOCK OPTIONS	24574	509.02	23917	498.81	48549	1029.35	10.22
						Total	-1077.16

On Tue, Dec 20, 2011 at 9:47 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Hong Kong Stocks Advance on Optimism China Will Loosen Policy
2011-12-20 02:02:08.530 GMT By Kana Nishizawa

   Dec. 20 (Bloomberg) -- Hong Kong stocks rose, paring
yesterday’s drop, as property developers and banks gained on
speculation China’s government will ease monetary policy.

On Mon, Dec 19, 2011 at 7:41 PM, Siddanth Gupta <siddan...@gmail.com> wrote:

IIFCL to set up $1-bn infra debt fund


ndia Infrastructure Finance Company (IIFCL) plans to launch a USD 1
billion infrastructure debt fund by the end of February, the firm's
chairman and managing director told reporters on Monday.

HSBC, the Asian Development Bank and local lenders Life Insurance Corp
of India and IDBI Bank will be co-sponsors of the fund, S.K. Goel
said.

India has targeted USD 1 trillion to overhaul the country's clogged
roads, railways and ports over the five years to 2017, and has called
on private cash to fund half of that figure.


Source: Moneycontrol

--
Manmohan Tandan

--
CA. Rajesh Desai

[RAJESH DESAI]

Network18 zooms up

Network 18 had hit a 52-week low yesterday at Rs.35.65 and today, it is up over 12% at Rs.40.50. The stock opened at Rs.38.50, which is also its current intra day low. Volumes are robust at over 1.3 lakh shares being traded today compared to 19,000 shares over the past two weeks. The stock is buzzing loud and clear today on news that Mukesh Ambani is seeking to purchase a stake in the company. At the end of Q2FY12, RIL's cash reserves stood at US$14 billion and by the end of the fiscal, it is expected to be around $25 billion on account of the payment of remaining stake-sale proceeds from BP and its strong operational cash flow. It is well known that RIL is scouting around for buy-ups and in that rift, almost any and every company is stated to being eyed by RIL. Neither Network nor RIL have yet to either confirm or deny the news.

--
CA. Rajesh Desai

[RAJESH DESAI]

[RAJESH DESAI]

Ranbaxy Laboratories said it has reached a settlement with the US drug regulator while setting aside $500 million to address its potential liability from a separate US Justice Department investigation.

The new consent decree with the US Food and Drug Administration (FDA), which is subject to approval by the US District Court in Maryland, comes after the regulator banned the company in 2008 from importing more than 30 of its generic drugs because of violations of manufacturing practices at two plants -- at Dewas in central India and Paonta Sahib in northern India. The FDA also halted review of drug applications from Paonta Sahib in 2009, alleging Ranbaxy had falsified data.

Ranbaxy said the agreement with the FDA would strengthen its procedures on data integrity and comply with current good manufacturing practices. The generic drug maker also said its new $500 million reserve would cover all potential civil and criminal liability.

"While we were disappointed by the conduct that led to the FDA's investigation, we are proud of the systematic corrective steps we have taken to upgrade and enhance the quality of our business and manufacturing processes," Ranbaxy Chief Executive Arun Sawhney said.

Sawhney continued, "With greater clarity around the outlook for our business in the US, we look forward to continuing to serve the U.S. market with safe, effective and affordable products, including our recent launches of Atorvastatin (brand Lipitor) and Atorvastatin-Amlodipine besylate (brand Caduet). Importantly, these developments bring greater predictability to Ranbaxy's U.S. operations and allow us to focus all of our efforts on bringing high quality products to market for the benefit of consumers."

On Tue, Dec 20, 2011 at 10:05 PM, sagar bhandari <hotm...@gmail.com> wrote:

US stocks: Wall Street rallies as euro zone worries ease

Reuters | Dec 20, 2011, 09.21PM IST

NEW YORK: US stocks rebounded sharply on Tuesday as a drop in Spain's borrowing costs and unexpectedly strong economic data from Germany eased euro zone debt worries. 

Short-term financing costs for struggling Spain more than halved as banks lapped up debt at an auction, apparently coming via cut-rate loans from the European Central Bank. 

The successful auction helped alleviate investor worry about Europe's debt crisis and fueled the broad rally in equities, with each of the 10 major S&P indexes up more than 1 percent. 

"It's not just a question of just a bounce back off of what happened yesterday, which is part of it, but you are also seeing to a large degree some fear alleviated particularly because of the appetite for Spanish debt that was showcased in the overnight," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey. 

"The US is the relative darling for world markets and we get an inordinate amount of attention on the upside, when things in Europe stabilize, even if it's only momentarily." 

Headlines and fluctuating European bond prices continued to spark high volatility. Stocks will be prone to large swings this week on expected low volume due to the upcoming Christmas holiday. 

The Dow Jones industrial average surged 257.10 points, or 2.19%, at 12,023.36. The Standard & Poor's 500 Index was up 28.98 points, or 2.40%, at 1,234.33. The Nasdaq Composite Index jumped 64.03 points, or 2.54%, at 2,587.17. 

The S&P fell more than 1% on Monday, coming close to a key technical support level. 

Networking stocks rose after AT&T Inc dropped its controversial bid for T-Mobile USA, the Deutsche Telekom 

unit as investors anticipate spending on wireless equipment would accelerate. 

US-listed shares of Alcatel-Lucent surged 10.8% to $1.54 and Juniper Networks Inc climbed nearly 10 percent to $19.86. The NYSEArca Networking index jumped 5.4%. AT&T shares edged up nearly 1 percent to $28.99. 

On the economic front, US housing starts and permits for future construction surged to a 1-1/2 year high in November as demand for rental apartments rose. 

The Munich-based Ifo think-tank said German business sentiment rose sharply in December, defying expectations it would decline and underscoring the resilience of Europe's biggest economy. 

The first-ever offer of three-year loans to banks from the European Central Bank on Wednesday is expected to be a strong indicator of whether debt-loaded countries get some relief or endure more pain.

On Tue, Dec 20, 2011 at 10:01 PM, sagar bhandari <hotm...@gmail.com> wrote:

OIL FUTURES: Crude Rises On Housing Data, Foreign Worries
Date:	12/20/2011 @ 8:58PM
Source:	Dow Jones News
<< Back

Oil futures jumped in early trading Tuesday along with equity markets after the latest report on U.S. housing starts showed home building surging well past expectations, in a positive sign for the U.S. economic recovery. The market was also watching news of unrest in an oil-producing province of Kazakhstan and a meeting of world leaders in Rome to consider sanctions on Iran's oil exports. Light, sweet crude for January delivery was up $2.92, or 3.1%, to $96.80 a barrel on the New York Mercantile Exchange. Brent crude on the ICE Futures Europe exchange was up $2.92, or 2.8%, to $106.56 a barrel. Volume was far below average because of the holiday season. The January Nymex contract expires at the end of trading Tuesday. Analysts and traders said the market was bouncing back from an oversold condition earlier in the week as market sentiment has improved about Europe's financial stability and the U.S. economic recovery. "It does seem that the fears that bubbled up to the surface last week have subsided a bit," said Gene McGillian, a broker and analyst with Tradition Energy. The Commerce Department said housing starts increased 9.3% to a seasonally adjusted annual rate of 685,000, the highest level in 19 months. Economists expected a rise of 0.3%. Stocks rose as the market opened, with the Dow Jones Industrial Average rocketing 149 points in the first minute of trading. In Kazakhstan, the government declared a state of emergency in the Caspian oil town of Zhanaozen after clashes between laid-off oil workers and security forces during an anti-government protest. Kazakhstan exported 1.5 million barrels of oil a day in 2010. In Rome, leaders of 11 nations including the U.S. and Sa

On Tue, Dec 20, 2011 at 9:59 PM, RAJESH DESAI <stock...@gmail.com> wrote:

Category	Buy	Sell	Net
	Value	Value	Value
FII	1976.14	2502.4	-526.26
DII	1053.82	867.1	186.72

FII & DII trading activity across NSE and BSE 20-12-2011

--
CA. Rajesh Desai

--
Regards

Sagar B

--
Regards

Sagar B

--
CA. Rajesh Desai

[RAJESH DESAI]

WHO WILL RUN THE WORLD IN 2012?

By Ruma Dubey When politics takes center stage, naturally economy suffers the most. Who else can vouch for this more than us Indians! But it looks like 2012, a year which ideally should see a slew of economic policies and reforms across the world, to spur on economic growth, will be year of politics and economics might get relegated to the backburner. One can argue and debate till the cows come home about China being the new powerhouse but the fact remains that America, continues to rule the world. What happens there, affects the whole world. Or should we say, what will not happen in 2012? Next year (11 days away) USA braces itself for a Presidential elections and that pretty much means that economics will pretty much come to a standstill and the policy paralysis which we accuse India of suffering, might ail USA too. The US elections are not due before November and that means, till then, we will see only politics playing out. That’s not all. A change of leadership is expected in China too. President Hu Jintao and the prime minister, Wen Jiabao are, well, know better. But by end of 2012, they will be handing over the reins to the new President, Xi Jinping and Prime Minister, Li Keqiang. Around 70% of China’s top leadership is likely to change during 2012. The fear rising is that the new crop of leaders coming up are more nationalists and that is sure to cause some amount of nervousness. Unlike USA, there will be any policy paralysis in China but nervousness will set in as one does not the mindset of the new leadership. Will the new power toe the line of the old or will exert power to change the course? Till the world gets a sense of what lies ahead, it would be wait-and-watch with trepidation. Power politics in two of the largest economies of the world; that in itself should have been enough. But there is more. France, which is today significant for holding up Europe from falling into the abyss of depression, is also slated to go to the polls in 2012. The French Presidential elections, till date might not have mattered so much but today, in the Europe debt crisis, it is a matter of great significance. Nicholas Sarkozy is currently not too high on the popularity charts and there is nervousness that to keep his seat intact, he might announce measures to merely play it up to the gallery. Import tariffs, tougher immigration laws are some of the populist measures he could resort to. Thus French Presidential elections in these tough times could be, as the French would say, ‘delicat’. And to make things all the more interesting, even Russia is going to the polls in 2012. No major changes are expected here, with Vladamir Putin expected to return as the Russian President. Dmitry Medvedev, the current president, who is Mr Putin’s protégé is more pro-USA and thus pro-international. Putin on the other hand tends to get prickly when it comes to international policies. Maybe given the changed circumstances, even Putin might come forth as a liberal. Well, if wishes were horses, then beggars would ride. In 2012, four of the five permanent members of the UN Security Council will undergo leadership change. Internal politics will be the theme and these changes are sure to have profound effects on international relations.

On Wed, Dec 21, 2011 at 10:02 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Talks with Anna were a mistake: Mani Shankar Aiyar

The battlelines have hardened between Team Anna and the Government and a major confrontation looks imminent as the Cabinet cleared the Lokpal Bill draft on Tuesday evening, but has kept the CBI out of its ambit.

The lower bureaucracy has also been kept out and will come under the Chief Vigilance Commissioner (CVC) with the Lokpal only providing oversight.

Reacting from Ralegaon Siddhi, Anna Hazare rejected the bill and has decided to go on another fast and launch a jail bharo agitation.

The Lokpal Bill is expected to be tabled in Parliament on Thursday. Former Attorney General Soli Sorabjee has called for restraint on the part of Team Anna while Senior Congress leader Mani Shankar Aiyar said it was a mistake to have ever held talks with Anna Hazare in the first place.

"We made a huge mistake in converting this Team Anna into a Frankenstein's monster. Now they have had their say, we have thought about it," he said.

"It is my job as a Parliamentarian to legislate. I had plenty of time to legislate and I hope that we get through this Lokpal Bill and can tell Team Anna to go back to flogging drunkards in Ralegaon Siddhi," he added.

Soli Sorabjee appealed to Anna and his team to be patient. He said, "Please be patient. Don't be suspicious of government's intentions. Have a little trust. See the government has given in on certain matters as the Prime Minister, the CBI, may be you have a point. If you had waited for so long, why this deadline?"

--
Manmohan Tandan

--
CA. Rajesh Desai

[RAJESH DESAI]

Food inflation eases to 1.81% week-on-week on December 10

--
CA. Rajesh Desai

[RAJESH DESAI]

Mahindra Holidays spurts on expansion in Goa  

 Mahindra Holidays & Resorts India (MHRIL) announced the launch of its new acquisition in Goa, the Club Mahindra Emerald Palms. With this acquisition, MHRIL has added another 106 rooms in Goa.

Club Mahindra now has the largest resort operations in South Goa taking its tally to 336 rooms with this acquisition. With the changes in the urban lifestyle reflecting in the increased holiday pattern of families, Club Mahindra also plans to keep up with this upward trend in India's holidaying habits. This is the first of a series of launches that Club Mahindra will have in the next six months, whereby several new destinations will be added along with a significant increase in its room count.

Speaking on the occasion, Rajiv Sawhney, managing director said, "While discovering new destinations and placing them on the holidayer's map has been a strong tradition at Mahindra Holidays, we always aim to ensure that our members can holiday where they want. This launch will significantly augment our capacity in Goa which is one of our most preferred destinations."

The charming. Club Mahindra Emerald Palms resort, located close to the Varca Beach has all the amenities that a Club Mahindra Resort offers. The Portuguese villa style apartment blocks are clustered around garden courtyards with patios and pergolas, providing both cozy comfort and privacy.

--
CA. Rajesh Desai

[RAJESH DESAI]

IVRCL up as it 'banks' on land

IVRCL which had hit a new 52-week on 19th Dec is today back in the reckoning. The stock is up over 3% at Rs.30.20, closer to its current intra day high at Rs.30.35. There are over 2.25 lakh buyers v/s 1.75 sellers on the counter.  Market cap stands at Rs.806 crore. The stock is up on news that is planning to sell as much as 1,600 acres out its land bank that it had secured for its real estate development. The land spans across five cities: Bangalore, Pune, Chennai, Hyderabad and Visakhapatnam. Its total land bank is at 2300 acres and it plans to retain only 700 acres which it is already developing at Sriperumbudur in Chennai. Proceeds from the sale of land is to be used as capital for future projects in its bid to reduce debt requirement.

--
CA. Rajesh Desai

[RAJESH DESAI]

Ramco Systems has decided not to proceed with the proposed rights issue on account of unfavorable market conditions



--
CA. Rajesh Desai

[RAJESH DESAI]

Bharati Shipyard gains on buzz its lenders may rejig loan

Acccording to reports, Bharati Shipyard is weighed down by mounting debt after its acquisition of Great Offshore two years ago and a dismal order book position.

Reports suggest that banks led by the State Bank of India referred the company to the corporate debt restructuring forum where lenders and borrowers agree to restructure the terms of a loan to prevent the loan from being classified as a bad loan.

Bharati Shipyard is a shipbuilding firm. The product range includes highly maneuverable and power packed offshore vessels including AHTS, PSV's and MSV's of varying bollard pulls, Tractor and ASD tugs, state of the art dredgers, deep sea fishing vessels, cargo and container ships, tankers and Ro- Ro Vessels. The shipbuilding activities of the company are presently carried out at Ghodbunder, Ratnagiri, Goa, Mangalore, Kolkata and Dabhol.

--
CA. Rajesh Desai

[RAJESH DESAI]

Yes Bank today (22 December 2011) hiked its deposit interest rates for resident and non-resident customers. The interest rate for resident savings accounts, with balances over Rs 1 lakh, has been raised by 100 basis points (bps), to 7%. This is in addition to the existing 6% interest offered to customers for balances below Rs 1 lakh.

For the non resident savings accounts (NRE & NRO), Yes Bank has raised the interest rates by 200 bps to 6% for balance up to Rs. 1 lakh and by 300 bps to 7% for over Rs 1 lakh balance.

Further, the interest rates on NRE fixed deposits, which were earlier regulated and linked to LIBOR, has also been increased to mirror the resident term deposit rates of 1 year and above, with a peak rate of 9.60% currently. This is in response to the recent development where Reserve Bank of India (RBI) deregulated the non resident deposit rates.

Speaking on the announcement, Dr. Rana Kapoor, founder, managing director & CEO, Yes Bank said, "In light of the current volatile global economic situation, we believe that the new Yes Bank deposit rates will be a highly beneficial and an attractive source of returns for our customers."

The bank said the latest announcement provides a significant opportunity for the bank to leverage its 325 plus branch network to accelerate mobilisation of granular retail deposits, one of the key objectives of its strategy for building its retail banking franchise with unprecedented service and innovative experience.

On Thu, Dec 22, 2011 at 11:32 AM, karishma suvarna <karishma...@gmail.com> wrote:

Morgan Stanley lists the ‘Cs’ that made headlines in 2011

C - Central bank tightening – Rates at multi-year highs
C - Crisis in Europe
C - Corruption scandals occupy headlines
C - Costs rise faster than revenues – Corporate earnings hurt as margins drop 
C - Compression in multiples causes equities to deliver negative returns
C - Cold Storage for policy action
C - Cost of living rises – inflation proves too stubborn
C - Consumer stocks outperform
C - Currency slides to all-time lows
C - Capex tumbles along with corporate confidence
C - Cut in earnings and growth is sharp and consistent

On Thu, Dec 22, 2011 at 11:23 AM, kuku manmohan <manmoh...@gmail.com> wrote:

Against the backdrop of a global economic slowdown and drawn-out Eurozone debt crisis, many investors are bracing themselves for the possibility of a quiet 2012 for the stock market. Other than overall depressed valuations, there will be a direct impact on trading volume and business activities for bourses and stockbrokers

--
Manmohan Tandan

--



Karishma Suvarna

--
CA. Rajesh Desai

[RAJESH DESAI]

Shree Renuka gets sweet again

Shree Renuka Sugar is up 4% at Rs.26. It has hit a new 52-week low on 19th Dec at Rs.22.80. With more buyers than sellers on the counter, the stock is witnessing some action. Almost all sugar stocks are up today along with Shree Renuka on news that there is a possibility that the Govt might consider the partial decontrol of the sector after the winter session of the Parliament gets over. It also plans to consider further export of sugar, which would be favourable for the industry. Last month, an export of one million tonnes was allowed under Open General Licence.

--
CA. Rajesh Desai

[RAJESH DESAI]

Thinksoft Global Services has been chosen by the Reserve Bank of India to deliver comprehensive end-to-end user acceptance testing, the company said. The deal is valued at Rs 50 million



--
CA. Rajesh Desai

[RAJESH DESAI]

Cargo volumes decline moderates after two successive months of +5% de-growth
In November 2011, cargo traffic at major ports was 45.7m tons, down just 0.5% y-o-y, after two successive months of 5-6% y-o-y decline. Cargo volumes for YTD FY12 have grown 1.3% y-o-y to 370.7m tons. Motilal Oswal believes the marginal volume decline during the month is due to the ban on iron exports as a result of which iron ore declined 35.4% y-o-y to 4.8m tons.

Marginal pick-up in coal and POL cargo in November; fertilizer cargo up 53% y-o-y
After two sucessive month of decline, POL and Coal cargo volumes are picking up. POL cargo volumes grew 1.4% y-o-y to 14.6m tons in November, led by resumption of Essar Refinery after a shutdown and growing contribution from the new refineries in Bina and Bathinda. Traffic at the Kandla Port improved from 2m tons in October 2011 to 3.9m tons in November 2011. Coal cargo grew 3.7% y-o-y in November to 5.9m tons. Fertilizer cargo grew 53% y-o-y.

Container cargo traffic at JNPT down ~2% y-o-y; all-India container traffic up 9.5% y-o-y
Container cargo volumes at JNPT declined 2% y-o-y to 4.8m tons for the month of November, while all-India container traffic grew 9.5% y-o-y to 10m tons. In YTD FY12, all-India container cargo (up 8.2%) was boosted by JNPT (up 3.8% to 38.3m tons) and Chennai port (up 4.5% to 20.3m tons).

Coking coal imports declined 12% and non-coking coal imports grew 34% YTD FY12 (till September 2011)
In YTD FY12, coking coal imports declined 12%, but non-coking coal imports grew 34%. Vizag port accounted for 36% of the coking coal imports to India, followed by Mormugao (20%) and Kolkata (19.5%). Mundra port accounted for 30% of non-coking coal imports, followed by Vizag (14.5%) and Paradip (12.3%).

Eight ports posted cargo traffic growth in November; Ennore posted highest growth of 86.3%
In November 2011, eight major ports posted positive cargo growth. Cargo traffic grew 86.3% at Ennore and 20% at Cochin. At these ports, volumes were boosted by coal cargo. At Kolkata, volumes grew 11% y-o-y to 1.1m tons, driven by POL and container cargo. Paradip port reported the highest de-growth in cargo volumes at 24.4% y-o-y.

On Thu, Dec 22, 2011 at 4:13 PM, kuch kuch kehna hai <kuchkuch...@gmail.com> wrote:

Piramal Healthcare may see 30% upside, says PN Vijay, Portfolio Manager, pnvijay.com.

Vijay told CNBC-TV18, “Piramal Healthcare is an old company they hit the news in a big way when they sold their legacy formulations business to Abbott made a pile, they are still getting part payments and incidentally the last one that came in this quarter they made a forex gain of more than Rs 100 crore because the market had factored in a rupee price for the terms action.”

He further added, “ Piramal Life Sciences is left with mainly its Contract Research and Manufacturing services (CRAMS) business which is 57% of its topline. It is also in some Over the Counter (OTCs) and in some criticals. It made peace with the US pharma giant Baxter and they have a generic called Desflurane which they would be introducing the US market as it goes off-patent. The interesting thing about Piramal is it has got a lot of cash, they took 5.5% stake in Vodafone - Essar some time ago for USD 640 million and their current assets actually on the books is more than market cap of the company. Imagine you are getting Piramal’s operating business free. They are guiding for a 20% CAGR on the topline, the businesses are steady and Piramal’s are strong investors in other businesses for profit. Some of their investments are very good in my view. And they on lucky position that they are getting dollar earnings through the balance three payments they have to get from Abbott.”

“The stock is trading around Rs 375, it is fallen of the high it reached about Rs 600 when the Abbott deal was announced but we see a 30% upside to the stock to about Rs 500 or so in the next 12-15 months driven by good businesses and a strong cash flow which gives them inorganic growth opportunities.”

--
CA. Rajesh Desai

[RAJESH DESAI]

Spicejet soars high

Spicejet is soaring high. The stock is up over 5.21% at Rs.17.15. The stock had hit a new 52-week low yesterday at Rs.15.35. But more sellers than buyers remain on the counter. The stock is zooming up today on market grapevine that Govt will allow aviation companies to directly import fuel. The airline companies buy their ATF from PSU OMCs which inturn import, due to airline companies pay a hefty states sales tax. But if allowed to import directly, they will not have pay this tax, and this could help airlines save at least Rs 2500 crore annually of their total ATF bill of Rs.10000 crore.

--
CA. Rajesh Desai

[RAJESH DESAI]

RJ_ Elephant has made a huge sum in Punj Lloyd futures and recovered his losses in metals.

On Fri, Dec 23, 2011 at 10:05 AM, RAJESH DESAI <stock...@gmail.com> wrote:

ABB rises after the ABB group booked an order worth more than Rs 4000 crore from Power Grid Corporation of India to deliver an ultrahigh-voltage direct current transmission system in India.



--
CA. Rajesh Desai

--
CA. Rajesh Desai

[RAJESH DESAI]

As recession tightens its grips on the US, the country appears to be increasingly adopting protectionist measures. From hiking visa fees to strong rhetoric, the politicians have resorted to several measures to prevent US companies from off shoring work to countries like India. The latest on the cards is the bipartisan bill that is aimed at punishing those American companies who outsource their telephone call centers to countries like India and Philippines. Such companies would be banned from grants or guaranteed loans from the federal government. And the ban would extend up to five years.

The Bill would also allow US consumers to demand an American representative when they make a call to a call center. If passed, this bill would substantially reduce the off shoring of such call center work by US companies. This in turn would hurt the growth of the BPO (Business Process Outsourcing) centers in India. Though Indian IT companies have been raising their voices against such protectionist practices adopted by the US, they have not been very successful at reversing any of the past decisions as of now. The latest bill would just add to their already growing woes as they are seeing demand slowing down from their biggest markets - the US and Europe.

source- eqm
--
CA. Rajesh Desai

[RAJESH DESAI]

Mutual Fund selling seen in Aditya Birla Nuvo.

On Thu, Dec 22, 2011 at 2:09 PM, taiyeb ali <taiyebal...@gmail.com> wrote:

Going the Fixed Income Way
Fixed income investors should understand that RBI’s shift on interest rate hikes will make longer-term debt more valuable…

I can’t really say how the stirring inflation vs growth fight that the Reserve Bank is fighting will turn out, but its impact on different types of debt mutual funds will certainly be important. When the general direction of interest rates shifts, then fixed income investors and the fund managers who run these funds change their approach to investing. This shift is happening right now and anyone interested in fixed income investing should understand what is happening and why.

The RBI has clearly said that interest rates are now on their way down, even though they haven’t yet started doing so. This has led to a redrawing of the basic landscape of fixed-income investing. At this juncture, the response of fixed income issuers and investment managers is driven by two parallel effects. One, there is an expectation that existing, longer-term debt will become more valuable. And two, those who need to raise long-term debt will much prefer to wait till interest rates have fallen.

As far as the impact on various types of mutual funds goes, the broad impact will be that investors can expect bond funds to do better. Within bond funds, better returns will migrate towards funds that invest in longer periods’ debt. For quite a while now, the interest of bond fund investors had been concentrated in short-term funds and in FMPs. Short-term funds always find favour when interest rates are high, or they are tending higher, or if the direction is uncertain. Under all these circumstances, shorter-term investments offer good returns coupled with safety. The safety aspect is important because when interest rates move up, longer-term debt loses value while shorter-term debt doesn’t do so, or does so to a much smaller degree. India has been in this situation of rising or uncertain situation for a while now and shorter-term funds have been the focus. That phase is over now and investors will shift to longer-duration bond funds. The other big shift that is possible is that in Fixed Maturity Plans (FMPs). FMPs are closed-end funds that are issued for a fixed period. In the immediate future, FMPs will be less in favour than longer duration bond funds. In fact, currently, fund managers are not favouring FMPs because they are unable to deploy the funds in FMPs at the kind of rates that investors expect. In anticipation of the fall in rates, debt issuers are loath to commit to FMPs and get locked into higher rates or in the current economic environment they are not confident of borrowing at high rates.

However, it’s highly doubtful that a huge and sustained shift downwards is something that debt investors can count on. The central bank hasn’t actually done anything yet. They’ve said that they will bring down interest rates but in the same breath they have also said that they’ll keep a close eye on inflation. Given the declining rupee and the variety of deficits that the country is running, inflation is hardly likely to become a thing of the past. Therefore, India is a long way from a significant shift in interest rates and can certainly not be said to be heading that way either.

The effects discussed above are the kind that serious debt investors should be concerned with. From the broader perspective of a small investor who wants to know about a general equity-vs-debt view, we are very much in a time when fixed-income options make more sense and only very long-term money should be deployed into equity and that too gradually.

The high rates of returns that are available to retail investors in bank fixed deposits as well as other sources like the Senior Citizens Scheme, post office schemes and NSC are here to stay. We are a long way from a fundamental shift in the attractiveness of these savings instruments.

--Dhirendra Kumar

--
Best Regards,

Taiyeb Ali
786

--
CA. Rajesh Desai

[RAJESH DESAI]

FII DERIVATIVES STATISTICS FOR 22-Dec-2011

	BUY		SELL		OPEN INTEREST AT THE END OF THE DAY
	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores	No. of contracts	Amt in Crores

INDEX FUTURES	114691	2646.31	101461	2348.12	479490	11193.73	298.19
INDEX OPTIONS	996214	23361.92	1003936	23477.96	2082072	49240.95	-116.04
STOCK FUTURES	206504	4414.03	213332	4745.96	1231824	26929.68	-331.92
STOCK OPTIONS	25169	533.07	24193	517.03	51634	1126.65	16.04
						Total	-133.74

--
CA. Rajesh Desai

[RAJESH DESAI]

Tilaknagar in high spirits

Tilaknagar Industries is up 8% at Rs.35.50, closer to its intra day high at Rs.36.30. There are more buyers than sellers, at this point, on the counter. Market cap stands at Rs.409 crore. The stock is buzzing on news that the company, after having won a legal battle against Dutch spirits company UTO over trademark, will now be able to retain its flagship brand Mansion House Brandy. This brand sells over 6 million cases annually and is recognized as one of the best Indian spirits.

[RAJESH DESAI]

[RAJESH DESAI]

Current account deficit may widen more: RBI

India's current account deficit is expected to widen further on the back of higher oil prices and sharp increase in imports of bullion, machinery and electronics, the Reserve Bank said on Thursday.

Inflation risks remain high and a slowdown in revenue collections and higher spending on subsidies may make it challenging to achieve the fiscal deficit target of 4.6% of gross domestic product in the fiscal year ending March, the Reserve Bank of India said in its Financial Stability Report.

India's current account deficit (CAD) swelled to USD 14.1 billion in its fiscal first quarter, nearly triple the previous quarter's tally. The full-year gap is expected to be around USD 54 billion.

"Recent data indicate further widening of the trade balance. Consequently, CAD which increased during Q1 of 2011/12 is expected to widen further," the report said.

The trade deficit for 2011/12 is expected to widen sharply to between USD 155 billion and USD 160 billion from USD 104.4 billion a year ago, posing further downside risks to the rupee, which hit a record low last week.

The sovereign debt problems in Europe and global slowdown were also impacting India's growth, the RBI said.
Higher government borrowings could crowd out private sector demand for funds and investment, it said, adding domestic demand was showing weakness.

Government data released earlier this month showed India's industrial output fell in October for the first time in more than two years.

On Thu, Dec 22, 2011 at 1:31 PM, yamini chopra <chopra...@gmail.com> wrote:

SINTEX

Brokerage: JPMorgan

Rating: OVERWEIGHT

Target: Cut its target to Rs 115 from Rs 208.

Rationale: Sintex is likely to cut capex and slow down execution of its working-capital-intensive monolithic business. JPMorgan has cut their monolithic business growth assumption from 30% to 5%.

But as per ET NOW Indian brokers are advising to sell

On Thu, Dec 22, 2011 at 1:27 PM, yamini chopra <chopra...@gmail.com> wrote:

 Praj Industries has announced to buyback e 6,207,100 equity shares of face value of Rs 2 for Rs 90 per share.

On Thu, Dec 22, 2011 at 1:09 PM, kuku manmohan <manmoh...@gmail.com> wrote:

Financial Technologies has repaid the entire outstanding amount and premium on the FCCBs it had raised in December 2006.

--
Manmohan Tandan

--
CA. Rajesh Desai

[RAJESH DESAI]

Mega hotch-potch of companies - Outside View by Luke Verghese

http://www.equitymaster.com/outsideview/detail.asp?date=12/22/2011&story=2&title=Network-18-Mega-hotch-potch-of-companies

--
CA. Rajesh Desai

[RAJESH DESAI]

telecom stocks fell on reports the Telecom Ministry has asked service providers to discontinue their 3G roaming agreements and is also contemplating imposing penalty on them.

According to reports, the decision came after the unanimous view of telecom regulator Telecom Regulatory Authority of India (TRAI), Law Ministry and Department of Telecommunications (DoT) that such roaming agreement was in violation of the telecom licences.

Leading operators like Bharti, Vodafone and Idea had entered into agreement with one another to offer 3G mobile services in circles in which they could not succeed in getting spectrum in the auction held last year.

Telecom Secretary R Chandrasekhar was quoted by media as saying that 3G roaming pacts were in violation of terms and conditions of the licence. The Ministry will be issuing notices asking operators to stop their service with immediate effect. But on penalty, no decision has been taken yet, he added.

The issue pertains to the pact among major service providers, including Bharti Airtel, Vodafone Essar and Idea Cellular, for providing 3G roaming network on a pan-India basis.

Other service providers like Tata Teleservices and Aircel had also entered into similar agreements to offer services in six circles. However, they have already discontinued the arrangement, reports suggested.

According to reports, the DoT had sought a legal opinion on this matter and the Law Ministry had supported the DoT's view. In an internal note, the DoT had reportedly said the roaming agreement among telecom companies for 3G services would lead to a significant loss of revenue to the government.

--
CA. Rajesh Desai

[RAJESH DESAI]

NTPC rose after the company said during market hours today that the unit 2 of 660 megawatts (MW) of Sipat Super Thermal Power Project has been commissioned on 24 December 2011. With this, the total capacity of NTPC group has become 36,014 MW. With the commissioning of this unit, the total installed capacity of Sipat Super Thermal Power Project has become 2,320 MW.

On Mon, Dec 26, 2011 at 1:03 PM, RAJESH DESAI <stock...@gmail.com> wrote:

Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms such as Cairn India. US crude oil futures for February 2012 delivery jumped 6.6% last week to settle at $99.68 a barrel on Friday 23 December 2011 on the New York Mercantile Exchange, the highest settlement since 13 December 2011.

On Mon, Dec 26, 2011 at 12:43 PM, kuku manmohan <manmoh...@gmail.com> wrote:

Telecom stocks rose after Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Saturday, 24 December 2011, asked the government not to take any "coercive" action over an order to ban 3G roaming pacts among firms until the next hearing of the case following an appeal filed by telecom firm with the telecom tribunal

On Mon, Dec 26, 2011 at 12:10 PM, karishma suvarna <karishma...@gmail.com> wrote:

Pranab Mukherjee on Sunday said he did not think there was any problem in presenting the Budget for 2012-13 on schedule in the wake of the announcement of Assembly elections in five states.

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Karishma Suvarna

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Manmohan Tandan

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CA. Rajesh Desai

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CA. Rajesh Desai