The R-factor of a surface determines how quickly heat is conducted across it.
For the markets, the R-factors include Reliance and Randomness. Both will come into play. Over the weekend, Reliance disclosed that it has sold RPL shares to broad base the shareholding. Reports caution that when an 'insider', quietly offloads shares it's time to think whether the share price has become over-valued. The real story may be its just a move to get it off the F&O curb and increase the floating stock. Then there is the other R, which is Reliance Power. Reports say Anil Ambani group has sought SEBI's nod to float Reliance Power's IPO at a face value of Rs 10 a share instead of Rs 2. This may be yet another attempt to speed up the IPO process.
The outlook for today is a positive open on the back of buying witnessed on Friday. With F&O expiry this week wild swings could set in anytime. While FIIs have been covering their shorts, they were net sellers in the cash segment. Domestic Mutual Funds on the other hand turned net buyers.
Expect some action in Hexaware today. R-Com could gain on reports of further stake sale in its tower business. Videocon is another counter which could see gains in the near term. Besides buzz of a placement at higher levels, reports say the company is in the fray to acquire London-based Burren Energy. UCO Bank could remain in action on reports that it plans to raise Rs4.5bn through a follow on public offer. Kalindee Rail could gain on reports that the company could bag some major orders soon. Nucleus Software could be in action on reports that it could benefit from the subprime crisis thanks to its loan originating software.
Following are reports from the various media:
Indian companies raised US$12bn through external borrowings in first five months of fiscal 2008.
Inflation falls to 3.01% on decline in food prices for week ended November 10th.
Government plans to reduce assured return on equity on negotiated projects for power generation companies.
Container train operators request railway ministry to lower the access fee charged for usage of container terminals by 10-15%.
Government approves 22 FDI proposals worth Rs5.1bn.
Investments to the tune of Rs380bn planned in the cement sector over the next three to five years.
Government likely to reduce 16% central excise duty on ethanol and classify it as a declared good in a move to impose a uniform levy on the product across the country.
Bulls look to continue momentum!
Markets ended their six day losing streak as bulls were back on bourses led by gains in the index frontrunners like Reliance Induatries, L&T, HDFC and Reliance Energy. Key indices almost lost their gains as markets reacted sharply to blast which took place in the U.P. region. But showed strong resilience as benchmark Sensex recovered almost 300 points from its day's low finally closing at 18,852 and the Nifty closed 89 points higher at 5,608.
DS Kulkarni gained 2% to Rs276 after the company announced that it would develop 250Acre of SEZ along with GTC Real Estate. The scrip touched an intra-day high of Rs300 and a low of Rs268 and recorded volumes of over 99,000 shares on NSE.
Reliance Industries surged by 3% to Rs2811 after reports stated that the company completed the purchase of the assets of Hualon Corp. of
NTPC advanced 4.5% to Rs236 after the company announced that it formed a subsidiary Company under the name and style of "Bhartiya Rail Bijlee Company Ltd" on November 22, 2007 for setting up a captive power plant of 1000 MW (2X250MW) at Nabinagar,
The company would be establishing and operating 2X660 MW coal based thermal power project at Meja Tehsil or any other suitable site in
Siemens advanced over 2.5% to Rs1978 after the local unit of
Hindustan Copper was locked at 5% lower circuit to Rs475.2. The company announced that it was considering entering into two joint ventures with overseas partners, according to reports.
The reports added that the company applied for licences of prospecting and have decided to look for foreign partners to enter into copper prospecting and exploration in
XL Telecom slipped 2% to Rs335. The company declared that the company secured Rs658mn export order. The scrip touched an intra-day high of Rs357 and a low of Rs330 and recorded volumes of over 46,000 shares on NSE.
ICRA was marginally up by 0.5% down 939. The company announced that the company signed MoU with United Bank of
PTC India is frozen at 10% upper circuit to Rs149.05 following reports that the company's arm would sell 40% stake to two FIIs. The scrip touched an intra-day high of Rs149.05 and a low of Rs135 and recorded volumes of over 15,00,000 shares on NSE.
Simplex Infrastructure dropped by over 2% to Rs601. The company declared that they secured a contract worth Rs5.87bn from DP World. The scrip touched an intra-day high of Rs647 and a low of Rs583 and recorded volumes of over 68,000 shares on NSE.
The markets may have bounced back on Friday in yet another volatile session dominated much by 3 blasts in UP. However, for the week, Sensex closed at 18853, down by 4.3% or 845 points and Nifty fell by 5% or 298 points to shut shop at 5609. One needs to understand, that much will depend on movement of the overseas market as the trouble in the subprime mortgages and credit market is far from over. So, one should not get carried away by Friday's rebound as there could be some more bad news in the offing in days to come. We also have expiry of the derivatives of the current month next week, which will contribute further to the current volatility. Short-term traders will continue to be the worst hit if the current situation doesn't change much while long-term players should grab this opportunity with both hands, as most of the index heavyweight stocks are available at attractive price.
Stocks in News:
Supreme Court has denied approval to the Rs40bn alumina refinery project of Sterlite Industries and Vedanta Alumina in Orissa.
BEML to buy government owned mining equipment plant for Rs1bn.
Power Grid Corp, in a JV with Reliance Energy, would set up 300km of transmission lines.
PTC India to float offshore arm, jointly with strategic partners, to acquire coal assets abroad.
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<!--[endif]--> Tata Chemicals has lined up a capital expenditure of Rs10bn for expanding capacities at its facilities in India, Kenya and the UK.
Vodafone Essar to raise US$500mn overseas to roll out network infrastructure and expansions into newer towns.
Air India incurs loss of Rs4.5bn in year ended March 2007 on rising fuel costs and wage arrears.
PTC India would sell 40% stake in its newly-formed financial services arm for Rs1.5bn to Goldman Sachs and Macquarie, Singapore.
Zydus Cadilla plans to launch 100 generic drugs that are expected to go off patent in the next five years in US and Europe
Future Group, Future Logistics Solutions will invest Rs4bn in next three years to operate additional mega merchandising hubs and warehouses.
SBI seeks government approval for merger of State Bank of Saurashtra with itself.
UCO Bank plans to raise Rs4.5bn through a follow on public offer; may approach SEBI by end of December
Balaji Telefilms may offload 15% stake in its wholly owned motion pictures arm
Kamat Hotels is working on a plan to set up 50 hotel properties in five-star, four-star and fort segments by 2012 at an investment of Rs5bn.
Upper Circuit
Walchand Industries, PTC India, Usha Martin, GTC Industries, Kothari Products, Marg Construction, Prakash Industries, Mukta Arts.
Lower Circuit
National Fertilizer, MMTC, Marathon Nextgen
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