Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-JUN-2008,ARCHIES,Archies Limited,MUDRA SECURITIES,BUY,36174,113.75,-
05-JUN-2008,BRABOURNE,Brabourne Enterprises Ltd,THE SURAT SAFE DEPOSIT VAULT PVT LTD,BUY,86123,24.63,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,313959,184.68,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,B K SHAH CO KETAN BHAILAL SHAH,BUY,134596,186.01,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,CHHATISGARH INVESTMENTS LTD,BUY,204000,184.88,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,DINESH MUNJAL,BUY,330899,183.72,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,161725,189.66,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,NAMAN SECURITIES & FINANCE PVT LTD,BUY,144429,196.74,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,PACIFIC CORPORATE SERVICES LTD ,BUY,45518,206.33,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,PRASHANT JAYANTILAL PATEL,BUY,373853,192.72,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,R.M. SHARE TRADING PVT LTD,BUY,306549,187.87,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,SANJAY BHANWARLAL JAIN,BUY,262728,182.55,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,SMC GLOBAL SECURITIES LTD.,BUY,132488,187.54,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,TRANSGLOBAL SECURITIES LTD.,BUY,235404,186.17,-
05-JUN-2008,GRABALALK,Grabal Alok Impex Limited,MAHESH CHIMANLAL DALAL,BUY,125000,119.72,-
05-JUN-2008,PTL,PTL Enterprises Limited,APURVA COMMODITIES PRIVATE LIM,BUY,500000,27.10,-
05-JUN-2008,ARCHIES,Archies Limited,AATMAN INNOVATIONS PRIVATE LTD,SELL,48395,115.25,-
05-JUN-2008,BRABOURNE,Brabourne Enterprises Ltd,THE SURAT SAFE DEPOSIT VAULT PVT LTD,SELL,56905,24.20,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,311959,184.81,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,B K SHAH CO KETAN BHAILAL SHAH,SELL,142043,182.36,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,DINESH MUNJAL,SELL,330899,184.71,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,159725,189.93,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,NAMAN SECURITIES & FINANCE PVT LTD,SELL,123929,196.40,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,PACIFIC CORPORATE SERVICES LTD ,SELL,168221,206.88,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,PRASHANT JAYANTILAL PATEL,SELL,373853,192.96,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,R.M. SHARE TRADING PVT LTD,SELL,306549,188.38,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,SANJAY BHANWARLAL JAIN,SELL,262728,182.74,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,SMC GLOBAL SECURITIES LTD.,SELL,132488,187.56,-
05-JUN-2008,GOKUL,Gokul Refoils and Solvent,TRANSGLOBAL SECURITIES LTD.,SELL,235404,186.76,-
05-JUN-2008,GRABALALK,Grabal Alok Impex Limited,INDEX EQUITIES PVT. LTD.,SELL,124151,119.74,-
05-JUN-2008,MASTEK,Mastek Ltd,ALLIANZ BAJAJ LIFE INSURANCE CO.LTD.,SELL,150000,400.00,-
05-JUN-2008,PTL,PTL Enterprises Limited,APURVA COMMODITIES PRIVATE LIM,SELL,534815,27.09,-
05-JUN-2008,RENUKA,Shree Renuka Sugars Limit,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,2416796,99.86,-
Thursday, June 5, 2008
NSE Bulk Deals to Watch - June 5 2008
BSE Bulk Deals to Watch - June 5 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
5/6/2008 532981 ANU LABS VIDHYA TEXTURISERS PVT LTD B 100000 287.00
5/6/2008 532981 ANU LABS SHAILESH M. NISSAR B 163002 277.80
5/6/2008 532981 ANU LABS N D NISSAR B 99994 279.09
5/6/2008 532981 ANU LABS DIPAK R RATHOD B 65101 280.62
5/6/2008 532981 ANU LABS BUNIYAD CHEMICALS LIMITED B 166360 288.87
5/6/2008 532981 ANU LABS PINKY POPATLAL JAIN B 119311 282.54
5/6/2008 532981 ANU LABS SHAILESH M. NISSAR S 163002 278.00
5/6/2008 532981 ANU LABS N D NISSAR S 99994 279.28
5/6/2008 532981 ANU LABS DIPAK R RATHOD S 65101 286.49
5/6/2008 532981 ANU LABS SUMIT BAJLA S 100000 279.85
5/6/2008 532981 ANU LABS BUNIYAD CHEMICALS LIMITED S 166360 290.99
5/6/2008 532981 ANU LABS PINKY POPATLAL JAIN S 119311 279.69
5/6/2008 531733 BAFNA SPINNI DE RADHAMANI B 100000 4.48
5/6/2008 532946 BANG MARUTI SECURITIES LTD B 80000 244.75
5/6/2008 524663 BHARAT IMUNO NANDITA MIHIR MEHTA B 205320 23.10
5/6/2008 524663 BHARAT IMUNO B R INTERNATIONAL S 204970 23.10
5/6/2008 524388 CRAZY INFOTE MANOJ DAGA B 330669 4.39
5/6/2008 532876 EVERONN SYS NANDITA MIHIR MEHTA B 185850 611.91
5/6/2008 532876 EVERONN SYS B R INTERNATIONAL S 185850 611.91
5/6/2008 532980 GOKUL REFOIL N D NISSAR B 190558 185.61
5/6/2008 532980 GOKUL REFOIL SAM GLOBAL SECURITIES LTD B 198897 187.88
5/6/2008 532980 GOKUL REFOIL H.J.SECURITIES PVT.LTD. B 193180 190.94
5/6/2008 532980 GOKUL REFOIL N D NISSAR S 190558 185.60
5/6/2008 532980 GOKUL REFOIL SAM GLOBAL SECURITIES LTD S 198897 188.15
5/6/2008 532980 GOKUL REFOIL H.J.SECURITIES PVT.LTD. S 193180 191.35
5/6/2008 501209 MAST MEDI SY BAKLIWAL INVESTMENT B 30000 39.50
5/6/2008 531996 ODYSSEY CORP SMITA MANOJ TURKHIA S 35000 30.24
5/6/2008 531769 PFL INFOTECH BABULAL RANARAM GHANCHY S 45900 13.06
5/6/2008 532884 REFEX REFRIG HIMAT PARSHOTTAMBHAI JATANIA B 93000 229.35
5/6/2008 526407 RIT PRO IND SHREE ATAM VALLABH POLYPLSTI S 51102 135.20
5/6/2008 531324 ROSELABS FIN YASH MANAGEMENT AND SATELLITE LTD B 150100 13.95
5/6/2008 590048 TYCHE PERIPH RAAJRATNA STOCKHOLDING PVT LTD B 58657 79.94
Post Session Commentary - June 5 2008
The Indian market made a smart turnaround after the mid session to close on an optimistic note. The favoring cues from the European markets also gave a boost to the domestic market. The market breaks its last three days losing trend to close on an optimistic note. Though the market faced the volatility throughout the trading session due to concern of rising inflation backed by hike in domestic fuel prices. From the sectoral front, the IT stocks, Bankex and Metal stocks shine as most buying was witnessed from these baskets. The market breadth was weak as 1397 stocks closed in red while 1240 stocks closed in green.
The BSE Sensex closed higher by 254.93 points at 15,769.72 and NSE Nifty closed up by 91.35 points at 4,676.95. The BSE Mid Cap and Small Cap grew by 2.92 points and 15.33 points to close 6,400.29 and 7,735.59 respectively.
The IT index closed up by 220.09 points at 4,617.44. Gainers are Niit Techno 9.13%, Tech Mahindra 7.52%, Wipro 6.25%, Infosys 5.86%, HCL Tech 5.80%, Satyam Comp 5.47%, NIIt 4.90% and I-Flex 2.19%.
The Metal index closed higher by 291.44 points at 15,714.59. Major gainers are Jindal Steel 5.09%, Nalco 4.90%, Tata Steel 3.10%, Ispat Inds 2.43%, SAIL 2.21%, JSW Steel 1.92% and Welspun Guj 1.49%.
The Bankex index grew by 138.21 points at 7,348.58. Scrips that gained are Yes bank 4.27%, Axis bank 4.19%, ICICI bank 3.09%, HDFC bank 2.22%, SBI 1.70%, Kotak bank 1.29%, IOB 0.80%.
The Power index advanced by 76.12 points at 2,708.49 as Suzlon Energy 8.66%, Tata Power 7.79%, Reliance Infra 5.68%, NTPC 5.57%, Crompton Greaves 4.63%, GMR Infra 2.63% and ABB 0.76% closed in green.
From the Oil and Gas basket, ONGC 7.46%, Gail India 7.39%, Essar Oil 4.15%, RNRL 2.92%, Aban Offshore 2.41%, Cairn India 0.71% and RPL .75% closed higher.
Market pulls back after three-session slump
The market put a halt to its three straight session losses and bounced back sharply on the second last day of the current trading week, as battered heavyweights and sectoral stocks found substantial buying support today. The sharp upmove in the Sensex and Nifty was in line with strong global indices. The Sensex, after dropping over 900 points in the last three sessions, witnessed sharp volatility till mid-morning trades. After a week opening at 15,480, the index tumbled to the day's low of 15,314 and gyrated between zones till mid-morning trades. The market soon recouped its lost ground and rallied sharply in the noon trades as gains in IT, Teck, power, FMCG and metal stocks propelled the index to an intra-day high of 15,815. The Sensex finally wrapped the session with gains of 1.62% or 255 points at 15,770, while Nifty advanced 91 points at 4,677.
Surprisingly the market breadth was weak. Of the 2,711 stocks traded on the BSE 1,392 stocks declined, 1,243 stocks advanced and 76 stocks ended unchanged. All the sectoral indices ended positive, except the BSE CD, BSE Realty, BSE Auto and BSE CG. The BSE IT index led the pack and rose 5.01% followed by the BSE Teck index (up 3.45%), the BSE Power index (up 2.89%), the BSE FMCG index (up 2.48%) and the BSE Bankex (up 1.92%).
Reversing the recent downward trend, 23 Sensex stocks advanced with DLF. Reliance Industries, Ambuja Cement, Tata Motors, BHEL, Larsen & Toubro and Mahindra & Mahindra failed to end in the green. Among the other major Sensex gainers, ONGC scaled up 7.46% at Rs953.20, Reliance Infra shot up by 5.68% at Rs1,130.85, NTPC vaulted 5.57% at Rs166.65, JP Associates jumped 3.68% at Rs205.60, Hindustan Unilever flared up 3.23% at Rs230.40, Grasim Industries rose 3.19% at Rs2,246.30, Tata Steel moved up by 3.10% at Rs840.90 and ICICI Bank spurted 3.09% at Rs781.25. ITC, TCS, HDFC Bank, Maruti, Hindalco, SBI, Bharti Airtel, Reliance Communications and Cipla gained around 1-2% each.
IT stocks hogged the limelight. NIIT Technology scaled up 9.13% at Rs141, Tech Mahindra surged 7.52% at Rs788.55 and Wipro edged higher by 6.25% at Rs528.40. Infosys, HCL Technologies, Satyam Computer Services and NIIT gained 5% each. Among the Teck stocks, Patni Computer zoomed by 3.71% at Rs276.40, Tanla flared up 3.34% at Rs267.40, Tata Communications added 2.78% at Rs489.95 and Moser Baer firmed up 2.72% at Rs169.90.
Over 1.90 crore IFCI share changed hands on the BSE followed by Anu Lab (1.25 crore shares), Ispat Industries (1.21 crore shares), Chambal Fertiliser (1.14 crore shares), Reliance Natural Resources (1.12 crores shares), Gokul Refoil (1.11 crore shares) and Reliance Petroleum (1.11 crore shares).
Bulls emerge victorious after three days of setback
Frenzied buying coupled with short covering after three straight day's of fall triggered a solid rally in late trade. Reports of Prime Minister's resignation had spooked a sell-off in mid-morning trade. Despite the rally, the market breadth remained negative. The market witnessed choppy swings throughtout the day. Global cues were mixed.
Earlier today, the market saw firm start despite weak global cues, but slipped in red shortly on fresh selling. The market breadth was weak. Shares from oil, realty, declined while those from IT, FMCG and power rallied.
The 30-share BSE Sensex ended up 254.93 points or 1.64% at 15,769.72. Sensex gained 300.01 points at its high of 15814.80 touched during late trade. It lost 200.72 points at day's low of 15,314.02, touched in mid-morning trade.
The BSE Sensex had eroded 900.78 points or 5.48% from 16,415.57 in past three trading days to 15,514.79 on 4 June 2008. Fears of early election, uncertainity over fuel price hike and weak global markets played the spoilsport.
The broader based S&P CNX Nifty was up 91.35 points or 1.99% to 4,676.95. Nifty June 2008 futures were at 4671, at a discount of 5.95 points as compared to spot closing.
The market breadth was negative on BSE with 1240 shares advancing as compared to 1397 that declined. 77 remained unchanged.
The BSE Mid-Cap index rose 0.05% to 6400.29 and BSE Small-Cap index rose 0.2% to 7,735.5961. Both these indices underperformed the Sensex.
BSE clocked a turnover of Rs 5578 crore today as compared to a turnover of Rs 6461.80 crore on 4 June 2008.
The NSE futures & options (F&O) segment turnover was Rs 51017.9 crore, which was higher than Rs 48,378.31 crore on Wednesday, 4 June 2008.
Among the sectoral indices on BSE, the BSE Consumer Durables index (down 1.42% to 4,031.72), BSE Realty index (down 0.99% at 6,326.05), BSE Auto (down 0.08% at 4,222.01), The BSE Oil & Gas index (up 0.02% to 10,061.83), BSE Capital Goods index (down 0.03% at 12,111.63), underperformed Sensex.
However the BSE IT index (up 5.01% to 4,617.44), BSE TecK index (up 3.45% to 3,525.65), BSE Power (up 2.89% to 2,708.49), BSE FMCG index (up 2.48% to 2,426.16), BSE Bankex (up 1.92% at 7,348.58), BSE Health Care index (up 1.9% at 4,345.89), BSE Metal index (up 1.89% to 15,714.59), BSE PSU index (up 1.84% to 6,719.54), outperformed the Sensex.
Among the 30-member Sensex pack, 22 advanced while the rest slipped.
IT stocks were the stars of the day's trading session, boosted by firm US dollar against Indian rupee. Wipro (up 6.25% to Rs 528.40), Satyam Computer Services (up 5.47% to Rs 512.20) and TCS (up 2.57% to Rs 982.75) edged higher.
India's second largest software services exporter Infosys jumped 5.86% to Rs 1979.70 on reports the firm is eyeing acquisitions in Europe to reaccelerate its growth. However the target company's name and size was not disclosed in the report.
Sahara Housing Finance Corporation was locked at 5% lower circuit filter at Rs 178 after the Reserve Bank of India banned a group financial firm Sahara India Financial Corporation from accepting public deposits after it was found guilty in violating various regulatory norms.
Mercator Lines soared 12.70% to Rs 118.50 after its Singapore-based unit bagged a renewed 4-year contract from Tata Power worth $320 million.
National Aluminium Company advanced 4.90% at Rs 501.75 on BSE on reports the firms plans massive investment of around Rs 40,000 crore in next five years in its various expansion projects.
Shares of upstream companies rallied after the subsidy burden that they have to bear became clear post fuel price hike announced yesterday, 4 June 2008, which had remained uncertain until now.
Oil and Natural Gas Corporation soared 7.46% to Rs 953.20 and Gail India jumped 7.39% to Rs 398.30.
Upstream oil companies ONGC and GAIL India absorb most of subsidy burden arising in the form of under-recoveries of oil marketing companies. The duo will now have to bear Rs 45,000 crore in subsidy burden, which is at historically high levels.
However the public sector oil-marketing companies extended losses today after yesterday’s fuel price hike. HPCL (down 6.26% to Rs 226.30), Indian Oil Corporation (down 6.29% to Rs 391.90) and BPCL (down 7.01% to Rs 301.35) edged lower.
Power stocks advanced on fresh buying. Tata Power Company (up 7.79% to Rs 1256.65), NTPC (up 5.57% to Rs 166.65), Reliance Infrastructure (up 5.68% to Rs 1130.85) edged higher.
FMCG stocks rose. Tata Tea (up 5.02% to Rs 816.30), Hindustan Unilever (up 3.23% to Rs 237.85), ITC (up 2.89% to Rs 222.35) edged higher.
Jaiprakash Associates (up 3.68% to Rs 205.60), Grasim Industries (up 3.19% to Rs 2,246.30), Tata Steel (up 3.1% to Rs 840.90), ICICI Bank (up 3.09% to Rs 781.25), HDFC Bank (up 2.22% to Rs 1,243), were the top gainers from Sensex pack.
Tata Motors (down 1.82% to Rs 532.60), Larsen & Toubro (down 1.6% to Rs 2,721.20), Ambuja Cements (down 1.89% to Rs 85.85), Reliance Industries (down 2.58% to Rs 2247.65), were the top losers from Sensex pack.
Interest rate sensitive realty sector declined on fears of hike in interest rates or CRR after inflation may rally to double-digit post fuel price hike announced yesterday, 4 June 2008.
Indiabulls Real Estate (down 1.6% to Rs 405.45), Phoenix Mills (down 3.99% to Rs 319) and DLF (down 3 % to Rs 538.45) edged lower from realty pack.
India’s largest maker of utility vehicles, Mahindra and Mahindra (M&M) declined 0.92% to Rs 562.75. It announced signing an agreement to acquire 100% stake in Italy based Engines Engineering. Engines Engineering is in the business of two wheels design and developing of motorcycle prototype.
India’s second largest telecom services provider Reliance Communications rose 1.3% to Rs 547.15. As per reports Reliance Communications and South Africa's MTN have begun due diligence as they inch closer to creating a global top-10 telecoms firm. Reliance Communications has also engaged Deutsche Bank for the possibility of roping in private equity firms for part of the deal, the source said. Blackstone Group Carlyle Group and Apax were interested to put in $4 billion to $5 billion, reports added.
India’s largest cement maker by sales ACC rose 1.09% to Rs 639.70. Its cement shipments in May 2008 fell to 1.8 million tonnes from 1.82 million tonnes a year earlier. Production fell to 1.79 million tonnes from 1.82 million tonnes during the similar period.
IFCI clocked the highest volume of 1.9 crore shares on BSE. Anu’s Laboratories (1.25 crore shares), Ispat Industries (1.21 crore shares), Chambal Fertilisers and Chemicals (1.14 crore shares) and Reliance Natural Resources (1.14 crore shares) are among other gainers in that order.
Reliance Industries clocked the highest turnover of Rs 418.91 crore on BSE. Anu’s Laboratories (Rs 353.59 crore), Reliance Capital (Rs 266.36 crore), Gokul Refoils and Solvent (Rs 210.66 crore) and ONGC(Rs 204.36 crore) are among other turnover toppers in that order.
India's largest wind turbine maker Suzlon Energy soared 8.66% to Rs 268.60. The stock moved up on reports that REpower Systems, in which Suzlon holds 33.6% stake, has bagged an order to supply 100 wind turbines to US-based enXco.
Tech Mahindra rose 7.52% to 847.85. The stock galloped after the firm said it signed a multi-million dollar deal with Botswana Telecommunications. The company sees revenues of upto $10 million over the next 3-5 years from the deal.
In a crucial development, government yesterday, 4 June 2008 agreed to raise its petrol and diesel prices by about 10% in an attempt to curb mounting losses of state-owned refiners thereby stoking inflation and risking a political backlash. After 10 days of debate over the price increase, the Cabinet also agreed to cut the import duty on crude oil to support state run refining and retailing firms. Customs duty on crude was also reduced to nil from 5%. The duty cuts would amount to Rs 22,660 crore in revenue loss, the Revenue Secretary said.
Meanwhile, the ruling Left Front in West Bengal has called a 12-hour general strike today, 5 June 2008 in protest against the 'anti-people' decision of the Centre to raise the prices of petrol, diesel and cooking gas.
Analysts opine that higher inflationary expectations immediately gave rise to fears of a cash reserve ratio (CRR) or interest rate hike, which is a negative for markets.
European markets were trading mixed. Key benchmark indices from France, and Germany were up between 0.08% to 0.11%. While UK's FTSE 100down 0.26%.
Asian markets were mixed today, 5 June 2008. Japan's Nikkei Singapore's Straits Times, South Korea's Seoul Composite, and China's Shanghai Composite, were down by between 0.08% to 0.65%. Hong Kong's Hang Seng and Taiwan's Taiwan Weighted were up between 0.55% to 1.28%.
US markets ended mixed in volatile session yesterday, 4 June 2008. Banks fell to their lowest level in eight years on Fed Chairman Ben Bernanke's warning that inflation is still a concern. Financials tumbled on rumors that Moody's May Put bond insurers AMBAC and MBIA on review for a possible credit rating downgrade.
The Dow Jones industrial average slipped 12.37 points, or 0.10%, to 12,390.48. The Standard & Poor's 500 index was down 0.45 points, or 0.03%, to 1,377.20, while the Nasdaq advanced 22.66 points, or 0.91%, to 2,503.14.
It's gonna be 9 in the near term
| |
Inflation may go beyond a 13-year high of 9 per cent as a result of the steepest-ever hike in petroleum prices, analysts said on Wednesday.
"It (inflation) could cross 9 per cent in the near term owing to the hike in petrol and diesel prices," HDFC bank chief economist Abheek Barua told a news agency.
Government today hiked petrol price by Rs 5 per litre, diesel by Rs 3 a litre and cooking gas by Rs 50 a cylinder.
ICICI bank CEO and MD K V Kamath said, "a 10 per cent sustained rise, if passed through, can add as much as 1.3 per cent to inflation."
Inflation was over 9 per cent nearly 13 years back in September 1995.
Petroleum Secretary M S Srinivasan said the hike could lead to an about 0.5-0.6 per cent rise in inflation rate.
Petrol and diesel prices, which have gone up by 11 per cent and 8.5 per cent respectively, will increase the inflation rate by about 0.3 per cent, while LPG cylinder would add 0.2-0.3 per cent to the rate.
Besides, there would be cascading effect of diesel price rise on commodities in due course of time by way of higher transportation cost, adding to the inflation.
A study by CRISIL said the petroleum price hike would push up inflation by 95 basis points through both direct and indirect impacts.
Last week, Finance Minister P Chidambaram had said any increase in administered prices of petrol would have moderate inflationary impact in the short term, but its effect on prices in the long term could not be predicted as there would be a cut in expenditure under some heads as well.
The hike in prices would be reflected in official inflation data slated to be released on June 20.
PM's Official Speech
My Fellow Citizens,
It has been some time since I have had the opportunity to speak to you. In the time that has gone by, our country has marched forward as one of the world’s fastest growing economies. This has enabled us to generate revenues that have been invested for the welfare of our people - in employment generating programmes, in farmer’s welfare and in building our social and economic infrastructure.
As I speak to you today, I feel confident that the people of India will continue to demonstrate their creativity and potential for high growth. I assure you that our Government will continue to pursue policies that will make our growth process more socially inclusive; more meaningful to all sections of society; more beneficial to our farmers, artisans, and industrial workers.
In the past four years, we have vastly expanded programmes which directly affect the poor and marginalized sections of society. We now have a universal rural employment guarantee of 100 days which is a unique social safety net for the rural poor. Farmers and agriculture are getting attention unprecedented in the last two decades.
The result is that agricultural production is rising much faster now than a decade ago. The education system has been has been expanded at all levels and we have tried to ensure that the nutritional status of our children improves through a universal mid-day meal programme. Bharat Nirman and the National Rural Health Mission and the Jawaharlal Nehru Urban Renewal Mission aim to provide better infrastructure and health care facilities in rural and urban areas. I am sure that all these efforts have started to bear fruit and no one can deny that we are moving in the right direction to eliminate poverty, ignorance and disease.
My Fellow Citizens,
However, I fully share with all of you your concern that in recent months, higher growth has been accompanied by higher inflation. Our government has taken several measures to insulate the less privileged in our society from the full impact of higher inflation.
You are all aware that two important external factors have been responsible for higher inflation. First, rising food and commodity prices around the world and second, rising world oil prices.
Our government has taken many steps to increase food production and procurement, limit food exports and strengthen the Public Distribution System. All these steps, along with positive expectations of a normal monsoon, have already had a positive impact on food price inflation. I am confident that in months to come there will be further stabilisation in food prices.
Our economy is largely self-sufficient in food. We produce enough to meet our needs. For this, we salute our farming community. Our government will continue to empower our farmers and enhance their welfare. We will continue to give a fair price to our farmers for their produce. This will certainly lead to some rise in prices of foodgrains but this is the only way in which we can incentivise higher production and assure the food security of our people.
However, in the case of oil, nature has not blessed us in the same manner. We remain dependent on imports. We are, therefore, vulnerable to global trends in oil prices. When our government came to power in May 2004, we faced a price of $ 39 per barrel for crude oil. Today, that price has gone up to over $ 130 per barrel – an increase of over three times.
This global Oil Shock has imposed a huge burden on our finances and on the financial resources of our Oil Companies. In the past year alone, as oil prices doubled, our Government did not make any adjustments in the price of petrol and other petroleum products. Kerosene prices have not been touched in four years.
Our Government is committed to ensuring that the impact of this global Oil Shock is minimal. We wish to protect as large a section of our society as possible from its effects. This has been at great cost to government finances and to the economy as a whole.
However, business cannot go on like this for ever. We need to learn to adjust to this new international scenario. We need to be efficient and economical in our use of energy. And we need to pay the economic cost of petroleum products. There are limits to which we can keep consumer prices unaffected by rising import costs. Our oil companies cannot go on incurring losses. This way, they will have no money to import crude oil from abroad.
To compensate them, the Central Government has reduced taxation of petroleum products to the extent possible. But given the commitments of the government for vital development and non-development expenditure, taxes on petroleum products cannot be completely eliminated. Thus a rise in prices is inevitable.
However, it has been our endeavour to raise the prices only by a moderate amount. Price of petrol has been raised by Rs 5 per litre, of diesel by Rs 3 per litre and of an LPG cylinder by Rs 50. Prices of kerosene, a vital fuel for the poor, remain unchanged. We continue to bear a subsidy of Rs 250 per cylinder of LPG and almost Rs 20 per litre of kerosene. It must be appreciated that what has been done is the bare minimum, with a substantial burden being borne by the government and the oil companies.
The Central Government, oil companies and consumers are bearing a part of this immense burden. It is therefore incumbent upon state governments, many of whom tax petroleum products substantially, to also contribute to this national effort by suitably reducing state taxes and levies.
My Fellow Citizens,
Taken together, this entire effort will only bridge a tenth of the uncovered gap of over Rs. 200,000 crores. There is still a gap of almost 90% which has to be bridged. This 90%, amounting to almost Rs 180,000 crores, is being bridged by the government. The cuts in excise and customs duties will cost Rs 22,000 crores to the government. The remaining gap of Rs. 150,000 crores will be met by a combination of lower profits for oil companies and compensation to them by the government in the form of oil bonds.
My Fellow Citizens,
I know that the price increases we have had to announce today will not be popular, even though they are only modest. You must remember that the Government is bearing the burden of issuing Oil Bonds. Our oil companies are making a large sacrifice and are under severe stress.
However, I would like the nation to remember that issuing bonds and loading deficits on oil companies is not a permanent solution to this problem. We are only passing on our burden to our children who will have to repay this debt. Cutting down on the returns of our oil companies will choke a sector vital for the growth of the economy. We need more corrective measures in future on many fronts. In the long term, our country must have a sound strategy for energy security.
To begin with, each one of us can conserve energy and contribute to national security. I urge every citizen to conserve energy at every step, every minute of the day. Be it petrol, diesel, kerosene, LPG, electricity or even water – let us learn to save and use efficiently. Let us reduce wasteful consumption of petrol.
Finally, we have to develop alternative sources of energy, whatever be the source. We cannot remain captive to uncertain markets and unsure sources of supply. We have to develop renewable sources of energy, including nuclear energy.
My Fellow Citizens,
Today more and more of our people are enjoying the fruits of development. It is the responsibility of the Government to ensure a secure future for all our people and for future generations. We cannot think only for ourselves, for the present, for the here and now. We must think about what is good for future generations - for the welfare and security of our children, grand children and their children. It is our duty to ensure their food security and energy security.
The steps taken today are part of that process. I hope each one of you will strengthen our hands in building a strong, secure and caring India. An India where the aam aadmi feels safe, secure and hopeful about the future.
Sensex plummets 448 points
Weakness across global indices took heavy toll on the market and the Sensex lost 4.72% on across-the-board selling.
The downward journey of the market continued for the third straight session, as slump in global indices and concerns of hike in petro products made investors nervous, thereby triggering
a major sell off. Resuming on a bullish note at 15,993, 30 points above its last close of 15,963, the Sensex during mid afternoon accumulated losses of more than 521 points on across-the-board selling to touch the day's low of 15,442. The index however managed to erase its losses a bit and trade above 15,500 at the end of the session. After registering losses of 450 points in the last two sessions, the Sensex dropped 2.81% or 448 points to close at 15,515. The Nifty shed 130 points at 4,586.
All the sectoral indices were mauled and each declined by more than 1-5%. The BSE Realty index was the major loser and crashed by 5.01%, followed by the BSE Metal (down 4.98%), the BSE Power index (down
4.42%), the BSE Oil & Gas index (down 3.39%), the BSE Auto index (down 3.31%) and the BSE CG index (down 3.14%). The BSE second-rung benchmark indices the BSE mid-cap index and the BSE small-cap index tanked over 2% each.
The breadth of the market was heavily skewed in favour of losers. Of the 2,719 stocks traded on the BSE, 1,967 stocks declined, 676 stocks advanced and 76 stocks ended unchanged.
Except ONGC all the stocks in the Sensex basket ended at lower levels. Among the major losers Ambuja Cement crashed 5.46% at Rs87, Tata Steel plunged 5.36% at Rs812, HDFC Bank slumped 5.19% at Rs1,200, Maruti Suzuki crumbled 5.07% at Rs735, BHEL plummeted 4.99% at Rs1,456, Reliance Infra dropped 4.89% at Rs1,063.50, Tata Motors shed 4.87% at Rs537.95, DLF tanked 4.70% at Rs551.10 and Reliance Industries lost 4.14% at Rs2,285.10. Other heavyweight stocks also came under sustained selling pressure and lost around 2-3% each.
Realty stocks were battered. Akruti City tanked nearly 7.57% at Rs901, India Bulls plummeted 7.29% at Rs412.05, Omaxe slumped 5.61% at Rs185.95, Unitech dropped 5.52% at Rs207.20, HDFC lost 5.50% at Rs637.75 and Ansal Properties slipped by 4.86% at Rs118.55. Sobha Developers, DLF, Mahindra Life,
and Peninsula Land declined over 4-5% each.
Over 2.11 crore Gokul Refoils shares changed hands on the BSE followed by IFCI (1.78 crore shares), Anus Lab (1.64 crore shares), RPL (1.56 crore shares) and Ispat Industries (1.38 crore shares).
It's terrorism - says BJP, Left plans to stop traffic to reduce consumption
BJP lashed out at the Government for hiking the prices of petroleum products saying a “directionless” UPA has unleashed “economic terror” on the nation. At the same time, the Left has also called for nation-wide protests and stir against the price hike.
“This action is disastrous for the economy and all the claims made by the Prime Minister so far on the front on inflation has been proved to be a hoax,” BJP spokesperson Rajiv Pratap Rudy told PTI.
On the other hand, senior Left party leaders termed the fuel price hike as a “slap on the face” of the common man and said it revealed the “anti-people” policies of the Congress-led coalition. The supporters of the four Left parties -- CPI(M), CPI, RSP and Forward Bloc -- will hit the streets from tomorrow morning to force the government to roll-back the hike, senior Left leaders Abani Roy (RSP) and G Devarajan (Forward Bloc) said.
BJP’s Rudy said the Government, which has run out of ideas, has now unleashed this economic terror on the nation by increasing the prices of petrol, diesel and cooking gas. “This decision is the last straw for the UPA government and the last nail on the coffin of the common man, whose interests it claim to champion,” he added.
Asked whether the hike would lead to a discussion among Left parties on withdrawing support to the government, he said, “The Left parties will discuss about withdrawing support in a meeting scheduled later this month. RSP alone can’t take a decision,” Roy said.
Rudy ridiculed the Left parties opposition to the petrol price hike, saying the remarks of the Communists are “hypocritical” as they are part and parcel of this decision
via Mint
Company Background - Essar Oil
Essar Oil Limited (EOL), a company incorporated as a Public Limited Company during the year 1989, engaged in preliminary activities relating to bidding for Oil & Gas fields as well as advising the Energy. EOL deals with its three segments of business, such as Exploration & production, the Refinery and Marketing - Retail Business. The Exploration and Production (E&P) business of the company has participating interests in several hydrocarbon blocks for exploration and production of Oil & Gas, namely in Mehsana in Gujarat, and Cachar in Assam (all in India). Essar's oil refinery at Vadinar in Jamnagar, Gujarat is ideally located in India's West Coast in close proximity to the crude rich Gulf States. Vadinar is an all-weather deep-draft natural port. The refinery is configured to produce Euro II and Euro III grades of Petrol and Diesel with capacity of 10.5 million tonnes per annum (MTPA) and also fully integrated with its own dedicated 120 MW co-generation power plant, port and terminal facilities. EOL is one of the few private companies permitted to market petroleum products in India. To serve retail customers under the brand 'Essar Oil', EOL has a modern, large countrywide distribution network of Retail Outlets.
The Exploration and Production Division was set up for the purpose of Oil & Gas exploration activities in the year 1990. The company became a wholly owned subsidiary of Essar Gujarat Limited in March of the year 1992 and entered into an MOU for operation and maintenance services for the Refinery with an affiliate company, Essar Refineries Limited. In the year 1993, EOL secured international drilling contracts against international competitive bidding; it was the first drilling Company in India to. EOL has signed a Memorandum of Understanding with UOP Inter Americana, USA (UOP), for providing major process technologies. Essar Gujarat Limited proposed to transfer the entire shareholding of Essar Oil Limited in the year 1994 to Essar Investments Limited. EOL has entered into an MOU with Essar Gulf for the supply of Crude Oil. In the year 1995 EOL has entered into a contract with Essar Gulf FZE (Essar Gulf), a company based in UAE for supply of imported equipment and also has entered into a contract with Essar Projects Limited a group company, for supply of indigenous Equipment and Materials and for construction and erection of all Equipment at site.
The Company entered into an MOU with Government owned public sector oil company, Indian Oil Corporation Limited for marketing and distribution of its products. The energy division has made entry into Qatar in the year 1996 with a three-year contract from Qatar General Petroleum Corporation for our deep Rig. A Marketing division has been set up to source, handle and market petroleum products for the group in line with the Government's policy from time to time. During the year 1997, Essar Oil has joined the National Securities Depository Limited (NSDL). Essar Oil Ltd has decided to hike its petroleum refinery capacity at Vadinar in Gujarat from nine million tonnes to 10.5 million tonnes. The Exploration and production (E&P) division of the company has also signed production sharing contracts for three more exploration blocks-two onshore blocks in Rajasthan and one offshore in the Mumbai offshore basin. Essar Oil Ltd and Reliance Petroleum Ltd have sought 13 per cent equity each in a proposed pipeline joint venture. During the year 1998, EOL has forged alliances with three foreign oil companies and Hindustan Oil Exploration Company (HOEC) for joint exploration activities in the country.
EOL has initiated a marketing agreement with the public sector Indian Oil Corporation (IOC), according to which, 50 per cent of the offtake from the refinery would be through IOC, and the balance through BPCL. Essar Oil and Bharat Petroleum Corporation (BPCL) have hired Price Waterhouse Coopers in the year 1999 and SBI Caps to independently evaluate the Ruias-promoted refinery and expedite the process of the latter buying an equity stake in the company. EOL proposed to hive off its drilling division into a separate entity in the year 2000 activated as the same. During the year 2002, the company received the authorisation from government to sell petrol and diesel. Negotiates with PSU refineries to source products for its entry into retail marketing of petro products. In 2003, the company sold its Energy Division to Bin Jabr group Ltd, an oil and gas service provider based in Abu Dhabi with total consideration of $0.6m. In the same year EOL started marketing imported products. The first consignment of imported HSD already arrived. Sets up its first retail outlet at Devrukh in Ratnagiri District of Maharashtra and divided its Petromarketing Business into two entities called 'retail' and 'institutional'. The company has bagged a tender for diesel supplies to the Bangalore Metropolitan Transport Corporation (BMTC), EOL and Castrol India Ltd signed an agreement for sale of Castrol lubricants through Essar Oil fuel outlets throughout the country during the year 2004.
In the year 2005, the Company had entered into an agreement with the Myanmar Government for exploration and production of two oil blocks there. The company had resumed work on the refinery in March 2005. Essar Oil is all set to commission its USD 2.2-billion 10.5-million-tonne (mt) refinery at Vadinar in Gujarat in the year 2006. EOL has started supplying Liquefied Petroleum Gas (LPG) and Kerosene during the year 2007 to PSUs for sale through the Public Distribution System. The Company has begun the implementation of the up-gradation of base refinery by addition of the following units i.e. Delayed Coker, VGO Hydrotreater, second Diesel Hydrotreater (High Pressure), ATF Hydrotreater and three small units Amine Regeneration Unit, Sour Water Stripper Unit and ATF Merox Units. This will enable the Refinery to process very heavy and sour crudes to produce products meeting exacting current international standards. In petroleum terminology this would translate into increasing the 'Nelson's complexity index from 6 to 12'. Simultaneously, the Company would also be de-bottlenecking the primary units (CDU/VDU), which will increase the refining capacity to 16 MMTPA.
World renowned Technology providers and consultants, UOP have completed the configuration study with the objective of processing heavy, sour crudes to produce international quality petroleum products while expanding minimum energy and protecting and preserving our environment. The Company has already executed contracts with key process licensors (UOP, Jacobs and ABB) who have made significant strides in completing the Basic Engineering work for these Units. Contracts have also been executed for Detailed Engineering, Procurement of Equipment and Construction of the Refinery, and the Contractors have received firm bids for equipment with long lead delivery periods. The cost of the proposed expansion and up-gradation of the company is estimated at USD1.2 billion. The Company has targeted to complete the expansion project by December 2009.
Oil to the rescue - may fall below 100 - prediction
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There may be some good news for oil companies which are still reeling under losses. A Mecklai Financial report has forecast that West Texas Intermediate, a benchmark in global oil pricing, will fall to under $100 a barrel, compared to around $124 a barrel at present.
However, the relief may be temporary since prices are expected to return to over $120 a barrel level by December 2009.
A dip in oil prices by the end of 2008 will come along with an overall decline in agricultural commodity prices, which have been giving a tough time to policymakers due to their impact on inflation. Mecklai's analysis of data since 1970 shows that a bull run in farm commodities lasts between one and two years.
So the current run in crop prices, which started in 2005, with one commodity after another taking turns in rising, will be over by July. In addition, the report said, that the analysis also coincides with the view that there is a negative co-relation between commodity prices and dollar, which will strengthen.
But what may not be good news for Indian policymakers who are trying to combat inflation are the projections on the rupee. According to the analysis, at the end of December 2008, the rupee is expected to range between 41.75 and 43.25 against the dollar. But it is likely to appreciate to 38.05-40.10 against the US currency in December 2009, the report prepared in May said.
"The sentiment will be rocky. Inflows will come back since people are looking to invest in India," said Jamal Mecklai, chief executive officer of Mecklai Financial. At the same time inflation, trade deficit and politics will weigh on the markets, he said, while predicting that the Indian currency will trade in the 39-43 range against the dollar.
via BS
Chidambaram - sorry, I am clueless
The government on Friday conceded that it could do little to tame inflation that has already breached the 8 per cent mark on the back of a persistent rise in global commodity prices.
"There is yet no sign of a decline in the inflation rate. We do not know if we have peaked yet," Finance Minister P Chidambaram said, after latest price data showed the provisional rate of inflation for the week ended May 17 stood at 8.1 per cent, up from 7.8 per cent a week earlier.
The minister’s comments contrast his earlier stance a couple of weeks of ago when he said that the inflation rate could already be tapering off.
Worse, actual estimates that follow with a time lag have been turning out to be much higher, and going by the trend so far, the inflation rate might have already crossed 9 per cent.
The spike in prices not only squeezes people’s real incomes, but for million of middle class Indians it points to increased financial hardship as a rising inflation rate forces interest rates to move up and add to the repayment burden on their housing and other consumer loans.
The inflation numbers overshadowed news that the Indian economy grew faster than the government’s own forecast for the fiscal year ended March 2008. Latest government statistics on national income showed the gross domestic product grew 9 per cent — compared with an earlier forecast of 8.7 per cent — helped by robust growth in agriculture.
The GDP numbers, however, pointed to a sharper slowdown in manufacturing that has been hemmed by hardening interest rates.
Chidambaram described the price situation as worrisome and attributed a part of it to persistent rise in global crude prices, which are hovering over $130 a barrel.
Pressure is mounting on the government to revise retail prices of petrol, diesel and LPG, currently sold at highly subsidized rates — a practice threatening to bankrupt state-owned oil firms. The government is debating how to protect oil firms, while minimising the impact of any price rise on consumers.
The impact of any hike in retail fuel prices will have impact going beyond the inflation rate. "Higher oil prices look set to weaken growth by squeezing profits, widening trade deficit and reducing consumer purchasing power as a result of higher inflation," said Sonal Varma, analyst at Lehman Brothers.
via HT
One class of citizens can remain happy - Farmers
Finance Minister P. Chidambaram on Wednesday asked three state-run banks in West Bengal to expedite the process of cancelling farm loans.
His directions came during a video conference with the officials of the United Bank of India, Allahabad Bank and UCO Bank. He asked them to finalise the list of farmers eligible for loan waiver by June 20.
More than 40 million farmers across the country are expected to benefit from the scheme for which the central government has set aside over Rs.700 billion.
According to a UCO Bank official who attended the video conference, Chidambaram asked the banks to complete the whole process soon so that new loans could be given to those farmers from July 1.
Nifty June 2008 futures at discount
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Turnover in F&O segment surges
Nifty June 2008 futures were at 4580.50, at a discount of 5.10 points as compared to spot closing of 4585.60.
The NSE futures & options (F&O) segment turnover was Rs 48,378.31 crore, which was higher than Rs 40,448.71 crore on Tuesday, 3 June 2008.
Oil & Natural Gas Corporation June 2008 futures were at discount at 878.10 compared to the spot closing of 886.20.
Tata Steel June 2008 futures were at premium at 820 compared to the spot closing of 813.75.
Infosys Technology June 2008 futures were at premium at 1884.90 compared to the spot closing of 1870.70.
In the cash market, the S&P CNX Nifty lost 130.30 points or 2.76% at 4585.60.
BSE Bulk Deals to Watch - June 4 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
4/6/2008 523269 ADVANI HOT R AAYUSH KABRA B 365000 99.35
4/6/2008 523269 ADVANI HOT R KAMAL KABRA S 237500 99.35
4/6/2008 532975 AISHWARYA TE MUKUL R. TIBREWALA B 66350 78.83
4/6/2008 532975 AISHWARYA TE SHAILESH M. NISSAR B 151554 83.34
4/6/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. B 83595 84.00
4/6/2008 532975 AISHWARYA TE MUKUL R. TIBREWALA S 66350 78.21
4/6/2008 532975 AISHWARYA TE SHAILESH M. NISSAR S 151554 83.44
4/6/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. S 83595 84.05
4/6/2008 532975 AISHWARYA TE ASIAN FINANCIAL SERVICES LTD S 100000 82.84
4/6/2008 532975 AISHWARYA TE AMPOULES AND AUTO PVT LTD S 102703 84.64
4/6/2008 532981 ANU LABS H.K.STOCK SERVICES PVT. LTD. B 146867 276.57
4/6/2008 532981 ANU LABS KASHISH FINSTOCK B 95000 270.77
4/6/2008 532981 ANU LABS PUJA TAPARIA B 65000 276.71
4/6/2008 532981 ANU LABS PRABHUDAS LILLADHER PVT. LTD. B 95008 273.59
4/6/2008 532981 ANU LABS N D NISSAR B 98247 273.84
4/6/2008 532981 ANU LABS VIVEK STOCK BROKERS PVT LTD B 82981 275.37
4/6/2008 532981 ANU LABS AMPOULES AND AUTO PVT LTD B 110500 279.19
4/6/2008 532981 ANU LABS PINKEY POPATLAL JAIN B 97537 276.34
4/6/2008 532981 ANU LABS H.K.STOCK SERVICES PVT. LTD. S 86867 280.91
4/6/2008 532981 ANU LABS PUJA TAPARIA S 65000 278.39
4/6/2008 532981 ANU LABS PRABHUDAS LILLADHER PVT. LTD. S 95008 274.12
4/6/2008 532981 ANU LABS N D NISSAR S 98247 273.98
4/6/2008 532981 ANU LABS SBI MUTUAL FUND AC STAF 1 SCHEME 159 S 75000 276.23
4/6/2008 532981 ANU LABS VIVEK STOCK BROKERS PVT LTD S 82981 277.67
4/6/2008 532981 ANU LABS SBI MUTUAL FUND MAGNUM MIDCAP FUND S 233678 264.11
4/6/2008 532981 ANU LABS SOPHIA GROWTH A SHARE CLASS S 125000 274.47
4/6/2008 532981 ANU LABS SBI MUTUAL FUND STAF 1 S 75000 268.22
4/6/2008 532981 ANU LABS PINKEY POPATLAL JAIN S 97537 275.37
4/6/2008 509728 BHURUKA GAS SATAYANARAYAN AGARWAL S 130000 20.92
4/6/2008 531137 GEMSTONE INV PREM M PARIKH B 25000 22.50
4/6/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI S 45026 22.44
4/6/2008 532980 GOKUL REFOIL MANSUKH STOCK BROKERS LTD B 209156 206.96
4/6/2008 532980 GOKUL REFOIL R M SHARES TRADING PVT LTD B 385939 210.28
4/6/2008 532980 GOKUL REFOIL SAM GLOBAL SECURITIES LTD B 320734 206.81
4/6/2008 532980 GOKUL REFOIL B K SHAH CO B 172575 200.88
4/6/2008 532980 GOKUL REFOIL ASHOK FINSTOCK LTD B 333909 215.30
4/6/2008 532980 GOKUL REFOIL MANSUKH STOCK BROKERS LTD S 209156 206.19
4/6/2008 532980 GOKUL REFOIL R M SHARES TRADING PVT LTD S 385939 210.18
4/6/2008 532980 GOKUL REFOIL SAM GLOBAL SECURITIES LTD S 320734 206.53
4/6/2008 532980 GOKUL REFOIL B K SHAH CO S 143168 200.47
4/6/2008 532980 GOKUL REFOIL ASHOK FINSTOCK LTD S 333909 217.85
4/6/2008 532909 GRABAL ALOK INDEX EQUITIES P.LTD. S 124500 120.02
4/6/2008 532187 INDUS IND BK LOTUS GLOBAL INVESTMENTS LTD B 1784700 72.15
4/6/2008 501209 MAST MEDI SY BAKLIWAL INVESTMENT B 30000 40.00
4/6/2008 512047 NATRAJ FIN NILESH RASIKLAL PANDYA B 30500 65.63
4/6/2008 532884 REFEX REFRIG HIMAT PARSHOTTAMBHAI JATANIA B 100000 224.25
4/6/2008 531324 ROSELABS FIN RAMBHABA HLDG. TRDG. CO.PVT. B 50000 14.00
4/6/2008 531324 ROSELABS FIN YASH MANAGEMENT AND SATELLITE LTD B 255300 13.98
4/6/2008 531324 ROSELABS FIN MADHUDEVI SUNILKUMAR PODDAR S 180000 13.97
4/6/2008 514304 S. KUMARS NAT ICG Q LIMITED B 6319379 104.50
4/6/2008 514304 S. KUMARS NAT HSBC FINANCIAL SERVICES MIDDLEEAST LIMITED S 6319379 104.50
4/6/2008 531898 SANGUINE MD CHINTAN BHAIDANI S 42674 26.43
4/6/2008 513216 UTTAM GALVA KSHITIJ RAJKUMAR SUREKA B 732861 43.29
NSE Bulk Deals to Watch - June 4 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
04-JUN-2008,BBL,BHARAT BIJLEE LTD,ARISAIG PARTNERS (ASIA) PTE LTD. A/C ARISAIG INDIA FUND LTD.,BUY,69434,1822.00,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,AMBIT SECURITIES BROKING PVT. LTD.,BUY,195471,205.76,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,ASHOKA FINSTOCK LTD,BUY,174673,216.77,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,243308,205.17,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,B K SHAH CO KETAN BHAILAL SHAH,BUY,187829,196.77,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,CPR CAPITAL SERVICES LTD.,BUY,218229,207.32,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,DIPAK RAMANBHAI RATHOD,BUY,186722,211.82,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,DYNAMIC STCOK BROKING (I) PVT LTD,BUY,165808,205.82,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,232785,194.91,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,144803,210.92,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,283130,200.11,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,MANIPUT INVESTMENTS PVT LTD,BUY,136887,202.73,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,MANSUKH SECURITIES & FINANCE LTD,BUY,137992,206.96,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NAMAN SECURITIES & FINANCE PVT LTD,BUY,281940,206.65,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NIMIT JAYENDRA SHAH,BUY,190635,201.20,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NISSAR BROTHERS,BUY,191171,200.80,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,PACIFIC CORPORATE SERVICES LTD,BUY,1025000,210.51,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,PAN EMAMI COSMED LTD,BUY,171362,198.63,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,PRASHANT JAYANTILAL PATEL,BUY,550922,202.68,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,R APPALA RAJU,BUY,351000,212.02,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,R.M. SHARE TRADING PVT LTD,BUY,417078,209.13,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SANJAY BHANWARLAL JAIN,BUY,375580,211.50,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SMC GLOBAL SECURITIES LTD.,BUY,216936,208.29,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SUMIT BAJLA,BUY,200000,216.87,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SURESH U.TREVADIA,BUY,149190,210.68,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TASNEEM K. MASTER,BUY,170858,204.06,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TIRUPATI ONLINE,BUY,475488,205.36,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TRANSGLOBAL SECURITIES LTD.,BUY,506006,202.72,-
04-JUN-2008,MAXWELL,Maxwell Industries Ltd.,JAIKUMAR K PATHARE HUF,BUY,1261991,16.60,-
04-JUN-2008,PTL,PTL Enterprises Limited,APURVA COMMODITIES PRIVATE LIM,BUY,384834,27.31,-
04-JUN-2008,PTL,PTL Enterprises Limited,KUBERSWAMY ASHUTOSH GONSULTANTS PVT LTD,BUY,50000,25.69,-
04-JUN-2008,UTTAMSTL,Uttam Galva Steels Limite,KSHITIJ RAJKUMAR SUREKA,BUY,800045,43.32,-
04-JUN-2008,BBL,BHARAT BIJLEE LTD,DSP MERRILL LYNCH MUTUAL FUND,SELL,69175,1822.00,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,AMBIT SECURITIES BROKING PVT. LTD.,SELL,195471,206.12,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,ASHOKA FINSTOCK LTD,SELL,174673,218.58,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,243308,205.52,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,B K SHAH CO KETAN BHAILAL SHAH,SELL,248810,198.19,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,CPR CAPITAL SERVICES LTD.,SELL,218229,207.39,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,DIPAK RAMANBHAI RATHOD,SELL,186722,212.44,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,DYNAMIC STCOK BROKING (I) PVT LTD,SELL,165808,206.08,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,232785,194.74,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,INDIA MAX INVESTMENT FUND LTD,SELL,200665,210.79,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,144803,212.06,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,283130,200.45,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,MANIPUT INVESTMENTS PVT LTD,SELL,136887,203.02,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,MANSUKH SECURITIES & FINANCE LTD,SELL,137992,208.43,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NAMAN SECURITIES & FINANCE PVT LTD,SELL,281940,206.71,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NIMIT JAYENDRA SHAH,SELL,190635,200.05,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NISSAR BROTHERS,SELL,191171,201.04,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,PAN EMAMI COSMED LTD,SELL,50000,181.78,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,PRASHANT JAYANTILAL PATEL,SELL,550922,202.58,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,R APPALA RAJU,SELL,351000,211.06,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,R.M. SHARE TRADING PVT LTD,SELL,417078,209.57,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SANJAY BHANWARLAL JAIN,SELL,375580,211.71,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SMC GLOBAL SECURITIES LTD.,SELL,216936,209.05,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SUMIT BAJLA,SELL,200000,214.39,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SURESH U.TREVADIA,SELL,149190,210.18,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TASNEEM K. MASTER,SELL,170858,204.12,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TIRUPATI ONLINE,SELL,475488,207.50,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TRANSGLOBAL SECURITIES LTD.,SELL,506006,203.54,-
04-JUN-2008,KOHINOOR,Kohinoor Foods Limited,DEUTSCHE BANK AG, LONDON,SELL,300000,81.00,-
04-JUN-2008,MAXWELL,Maxwell Industries Ltd.,VINAY JAIPAL REDDY,SELL,1261991,16.60,-
04-JUN-2008,PTL,PTL Enterprises Limited,APURVA COMMODITIES PRIVATE LIM,SELL,100000,25.80,-
04-JUN-2008,PTL,PTL Enterprises Limited,KUBERSWAMY ASHUTOSH GONSULTANTS PVT LTD,SELL,371979,27.24,-
Fuel price hike punctures the market
The stock markets fell like ninepins on Wednesday after the government increased the fuel prices with the benchmark Sensex shedding over 440 points, the biggest fall in two months, on heavy selling pressure across counters which was aided by weak European bourses as well.
The 30-share index of the Bombay Stock Exchange ended the day at 15,514.79, lower by 447.77 points, or 2.81 per cent, from its previous close. The biggest fall of the BSE barometer before this was on April 4 when it registered a loss of 489.43 points.
The 50-share S&P CNX Nifty of the National Stock Exchange slumped by 130.30 points or 2.76 per cent to close at 4,585.60 from its last close.
The government today announced a hike petrol and diesel prices by Rs 5 and Rs 3 a litre respectively and initiated a slew of measures in a bid to offset any negative impact of soaring global crude prices on national oil companies.
Marketmen said the hike were higher than expected and the investors feared that the increase would may lead to further inflationary pressures.
The markets were resilient for a while after the announcement of hike in fuel prices but later tumbled as investors resorted to frantic selling pressure as European markets fell sharply in their early trade.
Bourses in Germany, France and London were down by 1.30 per cent to 1.89 per cent.
Foreign institutional investors (FIIs) too were sustained net sellers in equity.
As per provisional figures, FIIs sold shares worth Rs 1,020.70 crore in equity on June 3.
Post Session Commentary - June 4 2008
The market faced the bloodbath during the trading session on the concern of rally of inflation above 10% mark due to the hike in fuel prices by the Union government. The Union Cabinet on Wednesday raised the prices of petrol by Rs5 and diesel by Rs3 due to rising crude oil prices. The price of the domestic cooking gas was also hiked by Rs50 a cylinder. The excise duty on petrol was cut Re1 a litre. Kerosene was exempted. The customs duty on crude was also reduced to nil from 5%. Though the market gained some grounds to pare its losses in the mid session but all of a sudden lost the grip due to fear of inflationary pressures as well as negative cues from the global markets. The market showed no sign of recovery till the close due to heavy selling pressures across the sectoral indices. From the sectoral front, the metal, capital goods, oil & gas and realty stocks faced heavy selling across the counters. The market breadth was weak as 1967 stocks closed in red while 676 stocks closed in green.
The BSE Sensex closed lower by 447.77 points at 15,514.79 and NSE Nifty fell by 130.3 points to close at 4,585.60. The BSE Mid Cap and Small Cap also fell by 149.33 points and 162.03 points to close 6,397.37 and 7,720.26 respectively.
The Metal index fell by 808.93 points to close 15,423.15. Major losers are Sesa Goa (8.83%), Sterlite Inds (6.71%), Jindal Steel (6.25%), Ispat (5.42%), Tata Steel (5.36%), JSW Steel (5.08%), Jindal Saw (4.50%) and Jindal Stainless (4.24%).
The Capital Goods index dropped by 405.43 points at 12,115.82. Losers are Elecon Eng (5.22%), Bhel (4.99%), Suzlon Energy (4.33%), Havells India (4.16%), Lakshmi Machines (4.03%), L&T (2.93%), BEML (2.76%) and ABB (2.73%).
The Oil and Gas index fell by 352.98 points to close at 10,059.51. Scrips that slipped are BPCL (7.84%), Essar Oil (7.24%), Cairn India (7.12%), RNRL (5.38%), Aban Offshore (4.60%), Reliance Industries (4.14%), Gail India (3.75%), IOCL (3.61%) and HPCL (2.90%).
The Realty index declined by 337.05 points to close 6,389.20 as Akruti City (7.57%), Indbul Real (7.29%), Omaxe (5.61%), Unitech (5.52%), Ansal Infra (4.86%) and Sobha Dev (4.78%) closed in red.
From the IT baskets, Mosear Baer (7.10%), I-Flex (6.40%), Niit Techno (5.97%), Aptech (4.58%), Tech Mahindra (4%), Finance Tech (2.91%), HCL Tech (1.68%), Wipro (1.27%).
The Auto index slipped by 144.46 points at 4,225.59 as Maruti Suzuki (5.07%), Tata Motors (4.87%), Ashok Leyland (4.73%), Escorts (4.66%), Bharat Forge (3.43%), Apollo Tyres (2.52%) and MRF (1.64%) closed in negative.
Market stays under pressure for third straight day
Local benchmarks stayed under pressure for third straight day today marred by fears of further spike in inflation to a multiyear high post fuel price hike announced during the day. Weak global markets also played the spoilsport. The market witnessed choppy swings throughout the day. Stocks across the board were hammered brutally with all sectoral indices on BSE suffering losses.
The market had witnessed a short lived recovery in early afternoon trade soon after the Cabinet Committee on Political Affairs (CCPA) approved the long awaited hike in fuel prices.
The 30-share BSE Sensex tumbled 447.77 points or 2.81% at 15,514.79. The barometer index swung wildly in a range of 550.56 points between the day's high and low of 15,992.90 and 15,442.34 respectively.
The BSE Sensex has now eroded 900.78 points or 5.48% from 16,415.57 in just three trading days.
The Sensex has now slumped 5691.98 points or 26.84% from its all time high of 21,206.77, struck on 10 January 2008. However it is still up 705.3 points or 4.76% from its recent low of 14,809.49 touched on 17 March 2008.
The broader based S&P CNX Nifty was down 130.3 points or 2.76% at 4,585.60. Nifty June 2008 futures were at 4580.50, a discount of 5.10 points as compared to spot closing.
The BSE Mid-Cap index down 2.29% to 6397.37 and BSE Small-Cap index down 2.06% to 7,720.26. Both these indices outperformed Sensex.
The market breadth was weak on BSE with 676 shares advancing as compared to 1967 that declined. 76 remained unchanged.
The BSE clocked the turnover of Rs 5,551 crore today as compared to Rs 5,252.69 crore on 3 Jun 2008.
The NSE futures & options (F&O) segment turnover was Rs 48,378.31 crore, which was higher than Rs 40,448.71 crore on Tuesday, 3 June 2008.
Among the sectoral indices on BSE, the BSE Realty index (down 5.01% at 6,389.20), BSE Metal index (down 4.98% to 15,423.15), BSE Power (down 4.42% to 2,632.37), The BSE Oil & Gas index (down 3.39% to 10,059.51), BSE Auto (down 3.31% at 4,225.59), BSE Capital Goods index (down 3.24% at 12,115.82), BSE Consumer Durables index (down 3.14% to 4,089.71) underperformed Sensex.
However the BSE FMCG index (down 1.5% to 2,367.45), BSE PSU index (down 1.93% to 6,598.43), BSE Health Care index (down 2.19% at 4,264.93), BSE Bankex (down 2.53% at 7,210.37), BSE IT ndex (down 2.54% to 4,397.35), BSE TecK index (down 2.67% to 3,407.94), outperformed the Sensex.
In a crucial development, government today agreed to raise its petrol and diesel prices by about 10% in an attempt to curb mounting losses of state-owned refiners thereby stoking inflation and risking a political backlash. After 10 days of debate over the price increase, the Cabinet also agreed to cut the import duty on crude oil to support state run refining and retailing firms.
Customs duty on crude was also reduced to nil from 5%. The duty cuts would amount to Rs 22,660 crore in revenue loss, the Revenue Secretary said.
Among the 30-member Sensex pack, 29 declined while India's largest oil exploration company in terms of market capitalisation ONGC was the lone gainer. The stock surged 5.31% to Rs 887.05 on speculation that it may have to absorb lower subsidy burden after today's fuel price hike.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) sumped 4.14% to Rs 2296.70.
India's largest real estate developer in terms of market capitalisation DLF shed 4.7% to Rs 555.10. The company’s net profit rose 536.6% to Rs 2590.28 crore on 388.1% rise in sales to Rs 5532.88 crore in FY 2008 over FY 2007.
Metal stocks declined. Sterlite Industries (down 6.71% to Rs 841.40), Sesa Goa (down 8.83% to Rs 3568.70), National Aluminium Company (down 1.71% to Rs 478.30), Tata Steel (down 5.36% to Rs 815.60), Hindalco Industries (down 3.09% to Rs 178.60), Steel Authority of India (down 1.69% to Rs 153.75), edged lower.
Power stocks declined. Reliance Power (down 7.31% to Rs 202.80), Tata Power Company (down 7.06% to Rs 1,165.85), Reliance Infrstructure (down 4.89% to Rs 1070.10), Powergrid Corporation of India (down 2.97% to Rs 88.30) edged lower.
Realty stocks slumped. Lanco Infratech (down 12.27% to Rs 416.50), Indiabulls Real Estate (down 7.29% to Rs 412.05) and Unitech (down 5.52% to Rs 207.20) edged lower.
State run oil & gas stocks erased early gains to post losses despite fuel price hike. BPCL (down 7.84% to Rs 324.05, off day's high of Rs 371.60), Indian Oil Corporation (down 3.61% to Rs 418.20, off day's high of Rs 452.90), HPCL (down 2.9% to Rs 241.40, off day's high of Rs 259.90) edged lower.
The OMCs have so far reported losses of over Rs 2.25-lakh crore due to the high crude prices and in the absence of revision in the domestic retail prices. They have said they will run out of cash to import crude if the government fails to bail them out.
Auto stocks were subdued post oil price hike announcement. Hero Honda Motors (down 4.26% to Rs 764), Mahindra & Mahindra (down 3.2% to Rs 571.50), Tata Motors (down 4.87% to Rs 542.50), Maruti Suzuki India (down 5.07% to Rs 746.55), and Bajaj Auto (down 4.91% to Rs 551.60) edged lower.
Ambuja Cements (down 5.46% to Rs 87.50), HDFC Bank (down 5.19% to Rs 1,215.95), Bharat Heavy Electricals (down 4.99% to Rs 1471.25), DLF (down 3.85% to Rs 560), edged lower from Sensex pack.
IFCI clocked the highest volume of 1.78 crore shares on BSE. Reliance Petroleum (1.56 crore shares), Ispat Industries (1.38 crore shares), Reliance Natural Resources (95.34 lakh shares) and Essar Oil (91.05 lakh shares) are among other volume toppers in that order.
ONGC clocked the highest turnover of Rs 313.48 crore on BSE. Reliance Industries (Rs 308.80 crore), Reliance Petroleum (Rs 268.68 crore), Essar Oil (Rs 220.61 crore) and Reliance Capital (Rs 216.73 crore) are among other turnover toppers in that order.
Anu’s Laboratories settled at a premium of 27.64% at Rs 268.05 on its debut on BSE. It had fixed the offer price of Rs 210.
Gokul Refoils and Solvent settled at a discount of 7.15% to Rs 181.05 on its debut on BSE. It had fixed the offer price of Rs 195.
European markets which opened after Indian markets were weak. Key benchmark indices in France, Germany and UK were down by between 1.42% to 2.16%.
Asian markets were trading mixed today, 4 June 2008. Key Asian indices - Nikkei 225 index, Taiwan's Taiwan Weighted, South Korea's Seoul Composite rose between 0.56% to 1.59%.
However, Singapore's Straits Times, Hang Seng and China's Shanghai Composite were down by between 0.83% to 1.93%.
US markets declined in volatile session yesterday, 3 June 2008 led by growing speculation that Lehman Brothers will be forced to raise more capital and a drop in oil prices pushed down energy companies. The Dow Jones industrial average declined 100.97 points, or 0.81%, to 12,402.85. The S&P 500 index slipped 8.02 points, or 0.58%, to 1,377.65, while the Nasdaq Composite index was down 11.05 points, or 0.44%, to 2,480.48.
US light crude for July delivery fell 34 cents to $123.97 a barrel today, 4 June 2008, triggered by a rallying dollar as traders awaited U.S. data expected to show rising oil stocks. London Brent crude for July delivery fell 38 cents to $124.20 a barrel.
Meanwhile, mutual funds have reportedly managed to increase their assets under management (AUM) by 5.36% in May 2008, helped by fresh investments in fixed income funds. The collective AUM rose by 30,576.72 crore in May 2008, according to the data released by the Associations of Mutual Fund in India (AMFI).
Monday, June 2, 2008
Sensex extends loss
The 30-share index lost 234.07 points, or 1.40%, to 16,415.57 in the week ended May 30, whereas the broad based NSE Nifty declined 76.45 points, or 1.54%, to 4,870.10 in the same period.
However, Sensex has shown some signs of recovery on Friday by gaining 99.31 points, or 0.61% to settle at 16,415.57, while the broad-based Nifty 34.80 points, or 0.72% to end at 4,870.10.
Broad-based rally in the market was led by metal, consumer durable, and IT shares.
BSE mid-caps and small-caps declined 2.54% and 4.51% respectively over the week.
The whole price index, inflation climbed to 8.1% for the week ended May 17, as compared with 7.82% in the previous week, fuelled by high prices of all essential commodities.
Tata Motors fell 9.56% over the week after the India`s largest automobile company announced it will raise Rs 72 billion via Rights issues to fund the acquisition of Jaguar.
Leading utility vehicles maker, Mahindra & Mahindra slipped 9.11% during the week after the company posted lower than forecasted fourth quarter earnings which missed analysts estimate.
However, Larsen & Toubro rallied 4.80% after the engineering and construction giant pleased investors by announcing bonus issue of shares, dividend and excellent financial performance, which beaten analysts forecast.
Indian Oil Corporation, the nation`s biggest oil marketing company, posted net loss of Rs 4.14 billion due to soaring crude oil prices and its inability to pass on the same to the end users.
The government is likely to announce the fuel price hike in next couple of days to rescue oil marketing companies.
Company Background - Reliance Power
The company was part of the Reliance ADA group and established to develop, construct and operate power projects domestically and internationally. The prevailing and expected electricity demand and supply imbalance in India presents significant opportunities in the power generation sector. To capitalize on this opportunity, the company has currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW, one of the largest portfolios of power generation assets under development in India.
The companies 13 power projects are planned to be diverse in geographic location, fuel type, fuel source and off-take, and each project is planned to be strategically located near an available fuel supply or load center. The identified project sites are located in western India (12,220 MW), northern India (9,080 MW) northeastern India (2,900 MW) and southern India (4,000 MW). They include seven coal-fired projects (14,620 MW) to be fueled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin (the "KG Basin") off the east coast of India, and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand. The company has intend to sell the power generated by these projects under a combination of long-term and short-term Power Purchase Agreements to state-owned and private distribution companies and industrial consumers.
Reliance Power - dumped post bonus
"This was a really disappointing performance, we were actually expecting the stock to close between Rs330-360," Anurag Purohit, research analyst with Religare Securities Ltd, said.
Reliance Power had announced in February it would give three bonus shares for every five held.
"Certain selling was expected, especially because of the run up the stock had witnessed post the announcement of the bonus issue, but it was certainly not expected that the stock will fall to the levels it did. Even in a worst-case scenario, we were expecting a closing of about the Rs280 mark," Purohit added.
"This will certainly trigger a panic among retail investors, and going forward, we can expect profit booking at every rise."
The stock closed at Rs235.85 on Bombay Stock Exchange (BSE), below the post-bonus cost of shares.
The bonus issue of three shares for every five held had brought down the cost of each Reliance Power share held to Rs269 for retail investors and Rs281 for institutions. The company had offered the shares at a discount of Rs20 to retail investors at Rs230 a share, as against a price of Rs250 for institutional investors.
The founder-promoters of the company, including Reliance Anil Dhirubhai Ambani Group (R-Adag) chairman Anil Ambani and Reliance Energy Ltd, who together held 90% of Reliance Power's equity, were not issued any bonus shares. The promoters, however, had acquired shares in Reliance Power at Rs17 each.
The company had set 30 May as the ex-date. Investors holding Reliance Power stock at the end of trading on 2 June will be given the bonus shares, the company said in a statement to BSE on 5 May.
The share sale of Reliance Power, India's biggest domestic initial public offering (IPO) thus far raising Rs11,700 crore, was sold out in less than a minute. But on the listing day, 11 February, the shares plunged and closed at 17.22% below the issue price of Rs450.
Meanwhile, R-Adag has another initial public offering in the pipeline. The group plans to offload a 10.05% stake in Reliance Infratel to raise Rs5,000-6,000 crore through the IPO.
"Raising money in the Reliance Infratel IPO, given the current market price of the Reliance Power share, is going to be challenging for the group as it has lost a lot of investor confidence since the listing of Reliance Power," said Arun Kejriwal, director, Kejriwal Research and Investment Services, a Mumbai-based advisory firm.
"He (Anil Ambani) has tried everything possible to regain investor confidence since. He will have to pull another rabbit out of the hat to make the Reliance Infratel offering successful."
Reliance Power plans to set up 13 plants with 28,200MW of generating capacity. Seven of these will start operating in the first five years, with the first plant in the line-up starting production in 2009.
"There are no fundamentals to judge the performance of the company as of now, so it is very difficult to know how the stock will react going forward," said an analyst with a domestic brokerage, who did not wish to be identified.
Weekly Newsletter - June 1 2008
Govt partially withdraws export ban on cement
The Ministry of Commerce & Industry partially withdrew the ban imposed on the export of cement. Cement exports have now been allowed from the ports situated in Gujarat. Similarly, cement exports have also been allowed to the units in SEZ and to Nepal. "The existing ban on export of cement and cement clinker shall not be applicable to export from ports of Gujarat," the Directorate General of Foreign Trade (DGFT) said in a notification. The Government had banned export of cement on April 11 to increase availability of the construction material in the domestic market and keep a lid on spiraling prices. "As much as two million tons of cement would be exported annually from the Gujarat ports," Commerce Secretary Gopal Pillai said.
SBI hikes rates on select deposits
Tight liquidity conditions forced State Bank of India (SBI) to revise interest rates on domestic term deposit rates by 25-50 basis points with effect from June 1. The country's biggest bank raised the interest rate on 3-5 year deposits by 35 basis points to 8.85%, while on 5-10 year deposits the rate was hiked by 50 basis points to 9%. On 2-3 year deposits, the interest rate was increased by 25 bps to 8.75%. For senior citizens, SBI carved out two new deposit schemes. Instead of the 2-10 year deposit, the bank announced two new schemes i.e. 3-5 years and 5-10 years. The interest rate on these two schemes will be 9.35% and 9.5%. "We have a fair size of long-term loan portfolio in housing and infrastructure projects. We need funds for these projects. This marginal hike is to enable us to raise funds for such projects," said Ashok Mukand, Deputy MD and CFO, SBI. But other public sector players ruled out an immediate hike, saying margins will come under pressure.
Monsoon yet to reach Kerala
India's June-September monsoon is expected to reach Kerala in the next 3-4 days, missing the previous forecast of May 29, the India Meteorological Department (IMD) said. "There is no indication that it has hit the Kerala coast," R.C. Bhatia, director general of IMD was quoted as saying. "The onset forecast model suggests that the monsoon onset over Kerala in is likely to be on May 29 with a model error of ± 4 days," the IMD says on its web site. In 2007, IMD predicted May 24 as the date of monsoon onset over Kerala. Actual monsoon onset took place 4 days later. The mean monsoon onset date over Kerala is 1 June, according to the weather bureau. With strengthening and deepening of monsoon winds and widespread rainfall activity, southwest monsoon advanced into southeast Bay of Bengal, Andaman and Nicobar Islands , and north Andaman Sea on 12 May, almost 8 days in advance, the IMD says.
RCOM to acquire UK's Vanco
Reliance Globalcom, subsidiary of Reliance Communications (RCOM), announced signing of an agreement to acquire the London-headquartered Global Managed Network Services, VANCO Group through one of its wholly-owned subsidiary. The acquisition of VANCO would add US$365mn (Rs15.50bn) to the annual revenue of Reliance Globalcom through secure Long-term contracts with largest enterprise customers. Among the most valuable companies in Managed Network Services Vanco's peak market capitalisation was over US$750mn (Rs30bn). Under the acquisition agreement, Reliance Globalcom would pay US$76.9mn (Rs3.27bn) to acquire 100% equity of VANCO Group free of debt. VANCO Managed Network services are currently available in over 40,000 locations across 163 countries. 90% of VANCO's revenue is from developed markets of UK, US, France and Germany.
Tata Motors to raise Rs72bn via 3 Rights Issues
Tata Motors said it would raise about Rs72bn through three simultaneous but unlinked Rights Issues. The company will raise up to Rs22bn from the first Rights Issue of equity shares. It will mop up a further Rs20bn from the second Rights Issue of 'A' shares carrying differential voting rights (1 vote for every 10 'A' shares). The third Rights Issue will raise up to Rs30bn from 5-year 0.5% Convertible Preference Shares (CCPs), optionally convertible into 'A' shares after three years but before five years from the date of allotment. The precise terms of the issues will be decided when they are ready to be made. On completion of the Rights Issues, Tata Motors will also, as already announced earlier, raise about US$500-600mn through an appropriate issue of securities in the foreign markets. The fund raising will be mainly used for financing the Jaguar-Land Rover acquisition which is expected to be completed shortly at an acquisition price of US$2.3bn. Though the initial acquisition cost will be financed through bridge loans provided by a syndicate of banks, these banks would be fully repaid through the above mentioned capital raising schemes.
Israel's Taro Pharma said it was terminating a merger agreement with Sun Pharma, saying that the deal is no longer in the best interests of the company. The Indian company responded by saying that Taro is not entitled to terminate the merger as per the original agreement. In a letter addressed to Barrie Levitt, Chairman of Taro, Sun Pharma chief Dilip Shanghvi said the proposed merger is in the best interests of all Taro shareholders. "We remain skeptical of Taro's turnaround. Taro has only US$47mn in cash as of March 31, 2008. This means that, if not for Sun's cash injections of about US$60mn last year, Taro would have virtually negative cash - hardly the dramatic improvement of which Taro has boasted," Shanghvi said. He also said that while Sun has made every effort to fulfill its obligations under the merger agreement, Taro has failed to honor its side of the bargain and take all necessary action to consummate the merger. "Further, Taro has ignored Sun's attempts to discuss, and put forward to it's shareholders, an increase in the merger consideration in order to complete the transaction," Shanghvi said. Shanghvi also noted that in light of Taro's actions, Sun will now consider all of its options, including legal proceedings.
Oil India, IOC to acquire 4 blocks in Libya
Oil India signed Exploration and Production Sharing Agreement with the National Oil Corporation of Libya, along with its consortium partners - Sonatrach (the national oil company of Algeria) and Indian Oil Corp. (IOC). The consortium will acquire four exploration blocks in Libya. These blocks have a total area of 6,934 sq kms in the south western part of Libya, around 700 kms from Tripoli, adjoining the Algeria border. Estimated reserves from the identified prospects indicated more than 2.0 TCF gas and 95 mmbbl condensate with possible oil considered as an upside. The consortium is committed to a minimum work program of 2000 km of 2D, 2600 km of 3D and 8 exploration wells, at an estimate cost of US$152mn.
IBull Realty arm may raise up to US$286mn in Singapore
Indiabulls Properties Investment Trust could raise up to S$388.3mn (US$286mn) selling units in a real estate investment trust (REIT) in Singapore, according to reports. The trust, part of Indiabulls Real Estate Ltd., plans to sell 353mn units of Indiabulls Properties Investment Trust at between S$1 and S$1.10. This will be the first such sale by an Indian real estate company. Lakshmi Mittal, the world's fourth-richest man, has reportedly agreed to buy 91mn units. Mittal was among the initial investors in Indiabulls Financial Services Ltd., which last year spun off Indiabulls Real Estate as a separate company. The projected yield for the trust is 4.66-5.12% based on forecast income for the year ending March 2009. Deutsche Bank and Merrill Lynch are handling the issue, which will see Indiabulls inject into the trust two projects with a total of 3.4mn square feet of space.
Bajaj Auto, Bajaj Finserve cool off on listing
Auto major Bajaj Auto got listed on the bourses after the company's demerger into three separate companies. The stock started trading at Rs784. The stock ended the week at Rs574 after hitting a high of Rs945 on listing day and a low of Rs543. Bajaj Finserve, the group's financial services arm, also got listed. The stock got listed at Rs530 and ended the week at Rs645 after touching a high of Rs999 on listing day and a low of Rs490. Bajaj Finserve comprises financial services and wind farm businesses of Bajaj Auto and has major presence in insurance, consumer finance and distribution space. Apart for this, Bajaj Finserve is considering a foray into the MF business. Bajaj Auto was de-merged into three new entities - Bajaj Holdings & Investments, Bajaj Auto and Bajaj Finserv. Bajaj Holdings, formerly Bajaj Auto, now functions as an investment company and focuses on new business opportunities. The new Bajaj Auto focuses on the auto business, while Bajaj Finserv is engaged in wind energy generation, insurance and finance.
Thermax
At the current market price of Rs 427, the stock trades at a modest valuation of about 15 times its likely FY-09 per share earnings.
While concerns over slowdown in growth may continue to mar Thermax's prospects over the next one year, its entry into utility boilers space and the expected commissioning of new capacities this year are likely to provide the much-needed growth momentum over the long-term. Investors with a two-year perspective can buy this stock.
Financials
For the financial year-ended March 2008, Thermax reported a 50 per cent growth in both revenues and profits, on a consolidated basis. Operating margins also expanded marginally to about 12.3 per cent.
Segment-wise, energy (constituting process heat, boilers and heater, absorption cooling and power businesses) continued to be the largest contributor.
The division, whose revenues grew by over 56 per cent during the year, contributed 81 per cent of the total revenues, up from last year's 77 per cent. With the likely addition of utility boilers business by next year, this division is likely to remain Thermax's leading revenue contributor.
The company's environment division, which comprises waste water solutions, air pollution controls and chemicals businesses, contributed to about 18 per cent of the total revenues.
However, the division clocked a modest growth of about 24 per cent during the year.
Tempered growth ahead
Notwithstanding the strong growth numbers, the management has guided a moderate growth rate for the current year. This restrained guidance comes on the back of slowing accretion to order book.
On a consolidated basis, the company's order backlog was down 15 per cent on a year-on-year basis. The group's order book stood at Rs 2,637 crore as on March 31, 2008 compared to Rs 3,100 crore in the previous year. Hardening interest rates, besides high coal prices and capital equipment cost, which led to postponement of order finalisation by some of Thermax's clients, could have limited the order inflows.
Also, margin pressures loom large for Thermax. Despite the management working towards maintaining operating margins at the current levels, any further rise in input prices may hurt Thermax's margins considerably. This is so because most of Thermax's orders are contracted on a fixed price basis only.
Although the management has said that it tries to include price escalation at the project costing stage itself or insists on a higher advance in projects where steel intensity is high, these efforts may not be sufficient to protect its margins. Given the current input price inflation scenario, the company's margins could come under pressure.
The silver lining
However, there is hope for Thermax. The company's entry into utility boilers space and the expected commissioning of its new capacities hold significant earnings potential over the long-term. Thermax had recently signed a 15-year technical transfer licence agreement with the US-based Babcock and Wilcox (B&W) for manufacturing and selling sub-critical B&W utility boilers (up to 800MW capacity) in India. This marks Thermax's entry into both sub-critical utility power projects and the high capacity captive power plants in India, a segment now dominated by BHEL. While the entry into utility boilers space will definitely expand Thermax's addressable market, it will also pit the company directly against the market leader.
However, Thermax's plans to target small independent power producers (250 MW) initially and BHEL's shift in focus to super critical boilers may provide the company an opportunity to gain foothold in this market.
Given the significant demand expected for power equipment, Thermax may well be able to build on its presence without cutting into BHEL's market share.
The utility boilers will be manufactured in the company's Vadodara facility. The facility, which is currently under expansion, is expected to become operational by January 2009.
This means, any meaningful contribution from this initiative can be expected from the next financial year only. While this is subject to Thermax receiving the relevant pre-qualifications on time, the management has indicated that it has already completed prospecting with a few large Indian power producers. And, given Thermax's track record, we do not foresee any hiccups in it getting the pre-qualifications on time.
Future growth triggers
The management has indicated at a strengthening of order flow in the fourth quarter. On a sequential basis, the company saw a healthy uptick in both order inflows and enquiries. The quarter saw more firm enquiries as against the mere budgetary enquiries earlier.
Order inflows may also be helped by the inclusion of the smaller captive power projects under the new coal distribution policy. Besides power sector, tender enquiries from companies in the steel and cement sector also firmed up last quarter.
Further, Thermax's presence in the environment business also holds tremendous growth potential. Unlike the energy division, revenues from this division are less prone to a cyclical slowdown and are driven primarily by government's mandatory environment-related guidelines.
Thermax's presence in air pollution control projects in West Asia and the Middle-East, combined with the home-grown need for water treatment projects in both commercial (SEZs) and municipal space are likely to help this division scale growth.
Moreover, since Thermax is slowly increasing focus on its waste water solutions segment (has set up a separate office to deal with municipal corporations), the potential growth opportunities from this space, to some extent, may also compensate for a slowdown in the energy division.
Gemini Communications
At Rs 209 (pre-split), the stock trades at 15 times its FY-08 earnings and 13 times its likely current year earnings, based on conservative growth estimates. At this level, though not exactly comparable, the stock commands valuation of the more integrated players such as CMC. But the momentum in deal wins, such as in e-governance and those from BSNL, hold promise for Gemini. The company is a system integrator and provides networking solutions to clients in the telecom wireless, wireline and IT infrastructure segments.
Gemini also has acquired two companies which are now its subsidiaries — Point Red Telecom and Traze RFID — players which have managed to help the company cater to WiMax and RFiD requirements of clients. Though IT infrastructure-related deals have gathered considerable momentum, the telecom and wireless vertical (contributing 35 per cent of the revenues) also holds potential.
Government IT deals hold the key
Gemini has been able to win many key deals over the past year and has been able to sustain the momentum in recent times. These are deals won from IT-enabling initiatives of various State governments. Two key deals that need to be highlighted are those from the Tamil Nadu Electricity Board and BSNL.
The TNEB deal envisages computerising and connecting all collection centres. The Rs 260-crore worth BSNL deal was won in partnership with Midas Communication and entails Gemini providing broadband connectivity to Tamil Nadu, Karnataka and Haryana.
The nature of these deals is such that there may be one-time receipts followed by annuity and upgrade/update related revenues, providing reasonably long-term revenue visibility. There are other deals too, won from government clients. These include computerisation of schools in many States. Such deals have seen Gemini partner with players such as Everonn Systems and, thus, enhance its client base as well.
With the Budget indicating sizeable outlays on e-governance and computerisation of citizen services, Gemini, with its existing clientele, appears well-placed to tap opportunities.
Wireless and Telecom Vertical shines
The company also provides solutions in the telecom and wireless space with a greater focus on 'last-mile' connectivity. This aspect being critical for voice and data communication, especially for Internet service providers, Gemini may tap impending opportunities. The company, after the acquisition of Point Red, was able to tap newer opportunities in technologies such as WiMax. The government's impending announcement of WiMax policy may hold positives for Gemini.
Through Point Red, Gemini has been able to win deals from international clients such as China Mobile and Botswana internet. It also has domestic clients such as Sify and Bharti.
The company also offers solutions relating to network planning, site surveys and infrastructure rollout and has inked deals with strong players such as Ericsson and Huawei. The number of cell-sites is set to expand sharply due to existing operators' expansion plans and newly-licensed players and the requirement of a rural reach. This suggests considerable potential in this segment. Gemini, even if it taps a small part of this market, could see a scaling up of revenues.
Other services foray
The company, through the acquisition of Traze RFID, has been able to tap into opportunities in this area. The company hopes to benefit by tapping retail majors in the US. Gemini also hopes to explore opportunities in the RFID space by providing 'smart tags' for tracking vehicles and goods for manufacturing, retail and logistics companies. The benefits from such forays remain to be seen.
Risks
With the increase in government clientele, the receivable days could increase, creating pressure on working-capital requirements. The company's interest costs have been increasing steadily on the back of outlays to implement deals.
Competition from integrated IT infrastructure players such as CMC, HCL Infosystems, Tulip Telecom and Wipro Infotech is a threat. Segments such as RFiD feature competitors such as Bartronics.
