Turnover declines

Nifty December 2009 futures at premium
Nifty December 2009 futures were at 5195, a premium of 7.05 points compared with the spot closing of 5187.95. Turnover in NSE's futures & options (F&O) segment was Rs 74334.74 crore, lower than Rs 84665.29 crore on Thursday, 24 December 2009.
Sesa Goa December 2009 futures were near spot price at 405, compared with the spot closing of 404.85.
Tata Motors December 2009 futures were near spot price at 787.90, compared with the spot closing of 786.
Reliance Industries December 2009 futures were near spot price at 1079.60, compared with the spot closing of 1080.
In the cash market, the S&P CNX Nifty rose 9.55 points or 0.18% at 5187.95.

Jindal Power files draft prospectus to raise Rs 7200 crore

The Jindal Power's issue proceeds to part finance the construction and development of various thermal power projects, besides for general corporate purpose.
Jindal Power today said it has filed a draft prospectus with market regulator Securities and Exchange Board of India (SEBI) to raise Rs 7,200 crore through its maiden public issue.
Jindal Power, which has set up the country's first mega power project, the 1,000 mega watt (MW) O P Jindal Super Thermal Power Plant at Raigarh in Chhattisgarh, is a subsidiary of Jindal Steel and Power (JSPL).
The company would utilise the issue proceeds to part finance the construction and development of various thermal power projects, besides for general corporate purpose.
Earlier this month the board of JSPL had decided to go for Jindal Power's initial public offer (IPO) for raising up to Rs 10,000 crore.
JSPL is part of the $ 12 billion (over Rs 60,000 crore) steel-to-energy conglomerate O P Jindal Group, led by Naveen Jindal
Jindal Power has invested around Rs 4,500 crore for setting up the Raigarh plant, which was commissioned in record time of less than one year.
JPL is also expanding the capacity of its existing power plant at Tamnar, Uttar Pradesh by setting up a 2400 MW super thermal power plant at an estimated cost of $ 2.40 billion (Rs 12,000 crore).

Sensex closes flat, remains choppy

Today's major news
Reliance Power starts production from Rosa plant; the stock jumps 4.94%.
Patels Airtemp receives a Rs3.2 crore order; the stock shots up 9.27%.
Gujarat NRE gives Rs4,200 crore investment push; the stock rises 3.33%.
Goldman Sachs takes 9.4% in Max India; the stock closed the day 1.96% higher.
Tantia Constructions receives project worth Rs34.62 crore; the stock surged 6.11%.
Click here for more stories
Post-market summary
Global signals
European stocks extended its rally on Tuesday ahead of key US consumer confidence data. At the time of writing this report FTSE 100 was trading 0.48% higher.
Among Asian indices bar Kospi all other indices closes in green. SGX Nifty ended 27 points higher.
US stock futures opens marginally higher on Tuesday ahead of US Consumer Confidence data to be announced today.
Indian indices
Sensex ended the choppy day with marginal gains of 41 points or 0.24% higher. On the back of mixed performance by Asian indices and marginally higher opening in European markets. The Sensex that opened 28 points higher, stayed in green for entire session owing to consistent buying in consumer durable and power stocks that helped the sensex to touch the intra-day high of 17486. The day’s low was 17373. Nifty touched the 5200 levels before ended the session at 5188, up by 10 points.
Sensex sentiment
The number of advancing shares was almost twice that of declining shares. Of the 2,902 stocks traded on the BSE, 1,859 stocks advanced, whereas 964 stocks declined. Seventy nine stocks closed unchanged.
Sectoral & stock screening
Of the 13 sector indices on the BSE, BSE CD leads the char of toppers with gains of 0.99% followed by BSE Metal that surged 0.92%. On the other hand BSE HC fell the most with loss of 1.37% followed by BSE IT that declined 0.65%.
On stocks’ front, Apollo Hospitals was the star stock of the day posting gains of 11.86% for the day followed by Ispat Industries that surged by 7.75% and Castrol India that rose by 6.19%. Among losers, Dr Reddy’s Laboratories slid the most by 3.34%, followed by Glaxosmitkline Pharmaceuticals that fell by 3.17% and Cipla that shed 3.04%.
Viewing volumes
Ispat Industries was the most actively traded share with over 1.62 crore shares changing hands on the BSE followed by wind turbine maker Suzlon Energy (1.15 crore shares), realtor company Unitech (0.44 crore shares), industrial finance company IFCI (0.40 crore shares) and ADAG group company Reliance Natural Resources (0.35 crore shares).

BSE Bulk Deals - Dec 29 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
29/12/2009 524412 Aarey Drugs VASANTKUMAR DAXABEN SHAH B 59000 43.60
29/12/2009 524412 Aarey Drugs NITA BANKESH BHAVSAR S 25000 43.60
29/12/2009 524412 Aarey Drugs JIPAL PINESHKUMAR SHAH S 25000 43.60
29/12/2009 590076 Camson Bio STANDARD CHARTERED BANK (MAURITIUS) LIMITED A/C EMERGING IND B 150000 105.00
29/12/2009 590076 Camson Bio SANATAN HERBAL AND NATURALS LIMITED S 150000 105.00
29/12/2009 532413 Cerebra Integ D VENKATESAN S 97282 14.06
29/12/2009 532413 Cerebra Integ VALUE SOURCE IT PRIVATE LIMITED S 100000 13.88
29/12/2009 531327 Charms Inds SHIVKUMAR RAGHUNANDAN CHAUHAN S 65000 5.32
29/12/2009 508860 Diamant Invest NARESH MANEKCHAND JAIN S 21872 120.36
29/12/2009 517973 DMC Intl NAVDEEP GUPTA B 42191 22.29
29/12/2009 517973 DMC Intl HARISH GUPTA B 77200 22.29
29/12/2009 517973 DMC Intl CENTENARY SOFTWARE PVT LTD B 57632 21.98
29/12/2009 517973 DMC Intl HITESH SHASHIKANT JHAVERI B 60804 22.30
29/12/2009 517973 DMC Intl KAPIL GUPTA B 45800 22.11
29/12/2009 517973 DMC Intl ATUL MITTAL S 57687 21.90
29/12/2009 517973 DMC Intl CENTENARY SOFTWARE PVT LTD S 58600 22.23
29/12/2009 517973 DMC Intl HITESH SHASHIKANT JHAVERI S 52915 22.30
29/12/2009 517973 DMC Intl SHARK COMMUNICATION PVT LIMITED S 66000 22.30
29/12/2009 504351 Empower Inds JIGNESH CHANDRAKANT SHAH B 186121 33.04
29/12/2009 532823 Euro Ceramics UMESH O KEDIA S 126612 53.10
29/12/2009 530337 Exelon Infra KAMALA KANTA GUPTA B 45849 57.75
29/12/2009 530337 Exelon Infra AMIT SARAOGI B 63100 56.69
29/12/2009 530337 Exelon Infra GANESH KUMAR DHANUKA B 37500 57.45
29/12/2009 530337 Exelon Infra MADHU CHHAPARIA B 25000 57.26
29/12/2009 530337 Exelon Infra KAMALA KANTA GUPTA S 74804 57.49
29/12/2009 530337 Exelon Infra VADLAMUDI SRI KRISHNA S 50000 56.50
29/12/2009 530337 Exelon Infra AMIT SARAOGI S 30000 58.00
29/12/2009 532959 Gammon Infra AMIF I LTD S 15119425 19.51
29/12/2009 590043 Harita Seat AMITAN THAKKAR B 20084 71.96
29/12/2009 590043 Harita Seat MADHUKANTA D MEHTA S 20000 68.00
29/12/2009 532658 Indo Asian Fuse REEFER GEN INFOTECH PVT LTD S 200000 59.15
29/12/2009 532658 Indo Asian Fuse KANCHENCHUNGA METAL MFG. COMPANY PRIVATE LIMITED S 300000 59.15
29/12/2009 532658 Indo Asian Fuse BP FINTRADE PRIVATE LIMITED S 90006 59.15
29/12/2009 532894 Indowind Ener DHIRAJLAL V SANGHVI HUF B 260750 60.04
29/12/2009 522259 Kalindi Rail SMART EQUITY BROKERS PRIVATE LIMITED B 98054 208.02
29/12/2009 522259 Kalindi Rail MBL & Co. LTD. B 120701 204.99
29/12/2009 522259 Kalindi Rail OPG SECURITIES P LTD B 129151 211.58
29/12/2009 522259 Kalindi Rail HITESH SHASHIKANT JHAVERI B 91673 216.72
29/12/2009 522259 Kalindi Rail SMART EQUITY BROKERS PRIVATE LIMITED S 98054 208.40
29/12/2009 522259 Kalindi Rail MBL & Co. LTD. S 120701 205.14
29/12/2009 522259 Kalindi Rail OPG SECURITIES P LTD S 129151 211.85
29/12/2009 522259 Kalindi Rail HITESH SHASHIKANT JHAVERI S 88305 216.36
29/12/2009 530255 KAY Power KAUSHALYA GARG B 60000 11.70
29/12/2009 530255 KAY Power KAILASHCHAND GUPTA S 61200 11.69
29/12/2009 532950 Manjushree Techno SURESH KUMAR RAM SISARIA S 131716 40.08
29/12/2009 532950 Manjushree Techno RAM AWTAR RAM SISARIA S 126488 39.68
29/12/2009 506867 Master Chem SAHASTRA HOLDING P. LTD., B 2400 28.11
29/12/2009 506867 Master Chem ASHOK JHAWAR & CO. S 2400 28.11
29/12/2009 531272 Nikki Global SUBHAM GUPTA HUF S 17471 63.67
29/12/2009 531496 Omkar Overseas PRAKASHKUMAR DEVSHILAL SHETH S 25000 42.24
29/12/2009 523483 Pacific Inds AMIT BUSINESS LTD B 8000 252.00
29/12/2009 523483 Pacific Inds ASHOKA FINSTOCK LTD B 8092 247.88
29/12/2009 523483 Pacific Inds ASHOKA FINSTOCK LTD S 8526 251.90
29/12/2009 509839 Punjab Wool DHARAM ARORA S 60528 5.10
29/12/2009 590077 Ranklin Sol PARVATHANENI MOUNISHA B 30001 50.23
29/12/2009 590077 Ranklin Sol GOVINDJI GUPTA B 40000 49.26
29/12/2009 590077 Ranklin Sol R O BART S 32001 49.28
29/12/2009 511585 Regency Trust MUKESH JINDAL B 25000 21.11
29/12/2009 511585 Regency Trust SUNIL KAJARIA & ORS S 35000 21.11
29/12/2009 519031 Shah Foods PRADEEP PORWAL B 7360 33.49
29/12/2009 532638 Shoppers Stop ZODIAC PRIVATE LIMITED B 360000 380.00
29/12/2009 532638 Shoppers Stop METROPOLITAN TRADING COMPANY S 360000 380.00
29/12/2009 532143 SKM Egg Products ABHISHEK VIJAYKUMAR SHAH B 475588 25.81
29/12/2009 532143 SKM Egg Products ABHISHEK VIJAYKUMAR SHAH S 402141 26.28
29/12/2009 531645 Southern Ispat AMITKUMAR BHUWANIA B 64614 37.17
29/12/2009 531645 Southern Ispat SAMIR GUPTA S 75000 37.20
29/12/2009 512413 Spectacle Inds HEMANT MADHUSADAN SHETH S 266000 75.00
29/12/2009 526827 Spice Islands DHEERAJ LOHIA B 24019 17.61
29/12/2009 526827 Spice Islands SNEHALATHA SINGHI S 25000 17.00
29/12/2009 531841 Subuthi Finance DHIRAJLAL V SANGHVI HUF B 25000 22.45
29/12/2009 531841 Subuthi Finance WIND ENERGY DEVELOPMENT COMPANY PRIVATE LIMITED S 75000 22.45
29/12/2009 526133 Supertex Inds KETAN MEHTA B 613266 3.05
29/12/2009 526133 Supertex Inds DANISH MANDMOHAMED ALIMERCHANT S 500000 3.00
29/12/2009 533121 THINKSOFT PRAKASHBHAI NARSINHBHAI PATEL B 80557 306.27
29/12/2009 533121 THINKSOFT KARVY STOCKBROKING LIMITED B 60000 309.40
29/12/2009 533121 THINKSOFT REGENT FINANCE CORPORATION PVT. LTD. B 76313 310.70
29/12/2009 533121 THINKSOFT REGENT FINANCE CORPORATION PVT. LTD. S 76313 307.56
29/12/2009 533121 THINKSOFT PRAKASHBHAI NARSINHBHAI PATEL S 94683 308.44
29/12/2009 532966 Titagarh Wag OPG SECURITIES P LTD B 228266 450.74
29/12/2009 532966 Titagarh Wag OPG SECURITIES P LTD S 228266 450.95
29/12/2009 526139 Transgene Bio T K DUGAR AND CO (PROP: TULSI KUMAR DUG B 76174 61.36
29/12/2009 531874 Venus Ventures SUMAN GUPTA B 34775 13.73
29/12/2009 531874 Venus Ventures ANITHA YARLA GADDA S 82070 13.79
29/12/2009 531249 Well Pack Papers SHOBHNABEN R PARMAR B 34375 349.94
29/12/2009 531249 Well Pack Papers SHOBHNABEN R PARMAR S 31001 349.77
29/12/2009 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 26612 350.87
29/12/2009 514470 Winsome Tex VENKATESWARA CAPITAL MANAGEMEN S 500000 3.95

NSE Bulk Deals - Dec 29 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
29-DEC-2009,AMTEKAUTO,AmtekAuto-Roll Sett,LIC (SCHEME-49),BUY,1000000,167.50,-
29-DEC-2009,AMTEKAUTO,AmtekAuto-Roll Sett,LIFE INSURANCE CORPORATION OF INDIA,BUY,1400000,167.50,-
29-DEC-2009,AUSTRAL,Austral Coke & Projects L,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,1481231,9.51,-
29-DEC-2009,BHARTISHIP,Bharati Shipyard Limited,CREDIT SUISSE (SINGAPORE) LIMITED A/C CREDIT SUISSE (SINGAP,BUY,308004,230.17,-
29-DEC-2009,CENTENKA,Century Enka Ltd,SHARAD SHAH,BUY,133653,283.31,-
29-DEC-2009,GLOBUSSPR,Globus Spirits Limited,SATYEN KANORIA,BUY,384828,100.38,-
29-DEC-2009,INDOASIFU,Indo Asian Fusegear Limit,INNOVATE DERIVATIVES PRIVATE LTD,BUY,200000,59.45,-
29-DEC-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,8764669,21.80,-
29-DEC-2009,ITI,ITI Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,272347,49.52,-
29-DEC-2009,ITI,ITI Ltd.,BABULAL SERMAL JAIN HUF,BUY,90617,49.51,-
29-DEC-2009,ITI,ITI Ltd.,SHRI VIDYASAGAR INVESTMENT ARPIT PATODI,BUY,113286,49.50,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,AJAY ASSET MANAGEMENT PRIVATE LIMITED,BUY,95821,214.37,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,ANGEL INFIN PRIVATE LIMITED,BUY,84031,211.22,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,BUY,77222,212.49,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,MBL & COMPANY LTD.,BUY,192107,204.80,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,66750,212.24,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,OM INVESTMENTS,BUY,193685,209.64,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,RAHUL DOSHI,BUY,85014,212.09,-
29-DEC-2009,MAGMA,Magma Fincorp Limited,NAMOKAR COMMERCIAL PVT LTD.,BUY,109400,155.17,-
29-DEC-2009,RPGLIFE,RPG Life Sciences Limited,RPG CELLULAR INVESTMENTS & HOL.P.LTD,BUY,80466,74.00,-
29-DEC-2009,SUNFLAG,Sunflag Iron And Steel Co,SUHRIT R BHARDWAJ,BUY,1480299,27.30,-
29-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,53471,306.10,-
29-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,BUY,77836,306.71,-
29-DEC-2009,ZENSARTECH,Zensar Technologies -Depo,RPG CELLULAR INVESTMENTS & HOL.P.LTD,BUY,400000,326.55,-
29-DEC-2009,AMTEKAUTO,AmtekAuto-Roll Sett,MAVI INVESTMENTS FUND LIMITED,SELL,3349134,167.87,-
29-DEC-2009,ASIANELEC,Asian Electronics Ltd,SHAH INVESTMENTS FINANCIAL DEV & CON PRIVATE LIMIT,SELL,190000,39.28,-
29-DEC-2009,AUSTRAL,Austral Coke & Projects L,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,1443790,9.51,-
29-DEC-2009,AUSTRAL,Austral Coke & Projects L,RATANLALBRIJLALTAMAKHUWALA,SELL,1550000,9.66,-
29-DEC-2009,BARTRONICS,Bartronics India Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A SV FCCB,SELL,183890,146.21,-
29-DEC-2009,CENTENKA,Century Enka Ltd,SHARAD SHAH,SELL,1594,280.77,-
29-DEC-2009,GLOBUSSPR,Globus Spirits Limited,SATYEN KANORIA,SELL,316125,100.58,-
29-DEC-2009,INDOASIFU,Indo Asian Fusegear Limit,KANCHENCHUNGA METAL MFG.COMPANY PVT.LTD,SELL,100000,59.45,-
29-DEC-2009,INDOASIFU,Indo Asian Fusegear Limit,REFERGEN INFOTECH PRIVATE LTD.,SELL,406003,59.45,-
29-DEC-2009,INGVYSYABK,ING Vysya Bank Limited,WINTERFALL LIMITED,SELL,2095982,300.00,-
29-DEC-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8354048,21.82,-
29-DEC-2009,ITI,ITI Ltd.,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,302065,49.60,-
29-DEC-2009,ITI,ITI Ltd.,BABULAL SERMAL JAIN HUF,SELL,103819,49.60,-
29-DEC-2009,ITI,ITI Ltd.,SHRI VIDYASAGAR INVESTMENT ARPIT PATODI,SELL,125917,49.33,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,AJAY ASSET MANAGEMENT PRIVATE LIMITED,SELL,81841,213.84,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,ANGEL INFIN PRIVATE LIMITED,SELL,67972,209.07,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,SELL,74394,212.31,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,MBL & COMPANY LTD.,SELL,192107,204.89,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,63610,210.86,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,OM INVESTMENTS,SELL,193686,209.79,-
29-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,RAHUL DOSHI,SELL,55034,210.17,-
29-DEC-2009,RPGLIFE,RPG Life Sciences Limited,OFFSHORE INDIA LTD.,SELL,80466,74.00,-
29-DEC-2009,SUNFLAG,Sunflag Iron And Steel Co,CHARANJIV DHAWAN,SELL,1480299,27.30,-
29-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,53452,306.22,-
29-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,REGENT FINANCE CORPORATION PVT. LTD.,SELL,77836,305.20,-
29-DEC-2009,VISASTEEL,Visa Steel Limited,HSBC GLOBAL INVESTMENT FUNDS A/C (HSBC GLOBAL BRICS STY),SELL,1154000,36.32,-
29-DEC-2009,ZENSARTECH,Zensar Technologies -Depo,PEDRIANO INVESTMENTS LTD,SELL,400000,326.50,-

Best PSU Stocks of 2009

2009 has been an eventful year for the equity markets, across the globe, particularly for markets like India, which are still emerging.
India`s benchmark 30-share index, the BSE Sensex is been amongst the best performers across key world markets during the current year, gaining more than 75% so far.
The Public Sector Undertakings (PSUs) too have displayed spectacular performance. PSUs which represent 30% of total market cap of listed companies in India, are in news these days with government announcing plans to divest stakes in profitable state run companies in order to finance ballooning fiscal deficit.
Let`s have a look at of 5 excellent performers among the PSUs` stocks in 2009 which have managed to make a mark.
Central Bank of India
Among the Public Sector Banks, Central Bank of India can be truly described as an all India bank, due to distribution of its large network in 27 out of 28 States as also in 4 out of 7 Union Territories in India. Central Bank of India holds a very prominent place among the Public Sector Banks on account of its network of 3,541 branches and 218 extension counters at various centres throughout the length and breadth of the country. Stock price of the company zoomed 240.40% to stand at Rs 144.5 a share as on Dec. 23, 2009 as against Rs 42.45 as on Dec. 31, 2008.
Rural Electrification Corporation (RECL)
RECL, a public sector enterprise, is engaged in financing and promoting transmission, distribution and generation projects across the country. Stock price of the company zoomed 229.65% to stand at Rs 240.65 a share as on Dec. 23, 2009 as against Rs 73 as on Dec. 31, 2008.
Bharat Earth Movers (BEML)
BEML is a premier ISO 9001-2000 company in India and the second largest manufacturer of earth moving equipment in Asia. BEML has vital applications in diverse sectors of economy such as coal, mining, steel, cement, power, irrigation, construction, road building and railway. Stock price of the company jumped 212.24% to stand at Rs 1050.25 a share as on Dec. 23, 2009 as against Rs 336.35 as on Dec. 31, 2008.
Engineers India (EIL)
EIL was established in 1965 by Govt. of India, its core area of work is to provide engineering and related technical services for petroleum refineries and other industrial projects. Stock price of the company zoomed 209.31% to stand at Rs 1510.25 a share as on Dec. 23, 2009 as against Rs 488.25 as on Dec. 31, 2008.
Steel Authority of India (SAIL)
SAIL is a giant among the steel majors in India, it is one of the largest steel conglomerates in the country. The government of India owns about 86% of SAIL`s equity and retains voting control of the company. Stock price of the company zoomed 204.84% to stand at Rs 236.1 a share as on Dec. 23, 2009 as against Rs 77.45 as on Dec. 31, 2008.
via IRIS

Maruti Suzuki to showcase an array of 17 vehicles at Auto Expo

Maruti Suzuki will showcase an astonishing array of 17 vehicles at the forthcoming Auto Expo in January 2010 The country's largest car maker, has adopted 'Joys of Life' as the theme for the Auto Expo.
The display will include new launches, and cars such as the Suzuki Kizashi and SX4 hatchback. The Kizashi is Suzuki Motor Corporation's flagship model in the D-segment. Kizashi is the sixth World Strategic Model from the Suzuki stable.
Kizashi in Japanese means 'a sign of great things to come'. Kizashi is powered by a 2.4-litre VVT petrol engine equipped with Continuously Variable Transmission or six-speed manual transmission. The engine delivers a huge peak output of 131kW @ 6,500rpm.
Maruti plans to showcase a hatchback version of its popular SX4. The Prussian Blue Pearl SX4 hatchback on display will be a 2.0 litre machine that has been exclusively imported for display at the auto show.
The SX4 hatchback is one of the most popular hatchbacks in European markets. In Europe the SX4 hatchback is available in multiple engine options that include a 2.0 litre, a 1.6 litre and an 1.5 litre petrol engines.
The stock is currently trading at Rs1565.50 up by 0.03% with a volume of over 69k shares on the BSE.
via News

Market pares gains in late trade

Key benchmark indices retraced from 19-month highs as profit booking emerged in late trade. Nevertheless, the market extended their gains for fourth straight session on sustained buying demand for pivotals. Global cues were positive with European stocks and most Asian markets trading firm. Volatility rose as trading progressed. The BSE 30-share Sensex was provisionally up 34.91 points or 0.20%, off 90.53 points from the day's high but up 22.89 points from the day's low. The BSE Sensex and the S&P CNX Nifty today, 29 December 2009, hit their highest level in 19 months.
The market breadth was strong. Power generation stocks witnessed an across the board rally on fresh buying. Telecom shares gained. However, software pivotals also declined on profit booking after a recent strong upmove which had propelled some of the counters to a 52-week high. Auto stocks were mixed. Two index viz. heavyweights Reliance Industries and ICICI Bank rose.
The BSE Sensex hit its highest in 19 months in early trade, as the market played a catch-up with to gains in Asian stocks on Monday, 28 December 2009 when the Indian markets were closed. A bout of volatility was witnessed in early trade as Sensex pared gains after an initial rally. The market firmed up again in early trade. The Sensex dipped to an intra-day low in mid-morning trade only to rebound thereafter. The Sensex and Nifty hit fresh 19-month highs in afternoon trade. The market extended gains in mid-afternoon trade tracking higher European markets and further recovery in Asian stocks. A sell-off pulled the market off the higher level in late trade.
Trading resumed today after a four-day break. The market had remained closed on Friday, 25 December 2009 for Christmas holiday and on Monday, 28 December 2009 on account of Moharram
Trading volumes are likely to remain low this week as most foreign fund managers are on year-end vacation. The market is closed on Friday, 1 January 2010 for the New Year holiday.
Volatility may zoom as traders roll positions in the derivative segment from December 2009 series to January 2010 series ahead of the expiry of the near-month December 2009 contracts on Thursday, 31 December 2009. Rollover in Nifty futures was about 36% at the end of Thursday's trading (24 December 2009). Rollover in Mini Nifty futures was about 41%.
The focus of India's monetary policy is shifting to managing recovery and containing inflation from one concentrated on fostering growth after the global downturn, Reserve Bank of India deputy governor Shyamala Gopinath. She said rising food prices were fuelling concerns of broader price pressures in India and the policy challenge was to address the supply-side constraints.
She said effective assessment of the inflation process and using monetary policy actions at the right time would be critical. Gopinath's comments follow those from fellow Deputy Governor Subir Gokarn on Thursday, 24 December 2009, who said the January 2010 policy review would focus both on growth and inflation, instead of the previous policy focus on growth.
Meanwhile, reacting to media report, petroleum secretary R S Pandey today said the government has no immediate plans to raise fuel prices. A recent media report had indicated that auto fuel prices could increase anytime early next year.
Prime Minister Manmohan Singh said on 28 December 2009 that the economy will grow at 7% or a little more in 2009-10. Inaugurating the 92nd annual conference of Indian Economic Association (IEA), Manmohan Singh put a strong defence saying in post-liberalisation the economy all along looked up till the global meltdown hit the growth pace.
India's infrastructure sector grew an annual 5.3% in November 2009, Trade Minister Anand Sharma said on Thursday. Infrastructure sector output grew 3.5% in October 2009 from a year earlier. The sector accounts for 26.7% of the country's industrial output.
Food price index rose 18.65% in the 12 months to 12 December 2009, data released by the government on 24 December 2009, showed. The primary article index jumped 14.66% and the fuel price index rose 3.95%. The worst monsoon in nearly four decades and flooding in some parts of the country have pushed up food prices.
Finance Minister Pranab Mukherjee said last week that containing inflation and cutting fiscal deficit are the major challenges for the government in the short-to-medium term. Mukherjee added that the government is open to altering the proposed draft direct tax code further informing that sustaining high economic growth remains a priority for the government. The draft code has proposed various reform measures, including cutting in corporate tax rate to 25% and streamlining tax laws.
The Indian economy can grow at 7.75% in the fiscal year ending March 2010, the Finance Minister said. He also told an industry conference in New Delhi that agriculture output must grow 4% for the economy to expand 9-10% annually. The government will wait until the February 2010 budget to consider withdrawing some of the fiscal stimulus measures, the Finance Minister said.
The latest data showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal. Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter. The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.
Coming back to stocks, record fund raising plans by Indian firms could suck liquidity from the secondary market. As per one report, Indian companies have lined up equity raising plans of Rs 150000 crore in calendar 2010, close to two-and-a-half times of what they raised through share sales in the year about to end on 31 December 2009.
Emerging-market equity funds inflows tripled last week as the outlook improved for developing-nation exporters, EPFR Global said on Monday. The funds attracted $1.7 billion in the week ended 23 December 2009 from $571.4 million in the previous week, EPFR said in a statement. That added to a record $80.3 billion of investments in emerging-market stock funds so far this year, compared with outflows of $48 billion in the same period in 2008, EPFR said.
Asia ex-Japan Equity Funds also posted modest inflows of $179 million for the week, with investors in this region rotating some exposure from smaller markets like Taiwan and Singapore to bigger ones such as China. China Equity Funds took in another $153 million, maintaining their record-setting pace, and dedicated BRIC Equity Funds also remain on track for a record setting year after absorbing another $451 million.
Meanwhile, India and Japan signed two important agreements on Monday for implementing the ambitious Rs 3.6 lakh crore Delhi-Mumbai Industrial Corridor (DMIC) project which seeks to create integrated investment regions and industrial areas across six states.
The agreements include collaborating in the development of eco cities that are environmentally and ecologically sustainable along the corridor and setting up of a project development fund to undertake activities like master planning & feasibility studies, preparing project reports and obtaining approvals and bid process management for projects.
European markets were trading firm led by mining and oil stocks. Key benchmark indices in Germany, France and UK were up by between 0.08and 0.44
Asian shares had advanced on Monday after China raised its economic growth forecast and Japan's industrial production increased. Chinese Premier Wen Jiabao indicated on Sunday, 27 December 2009 that the government is unlikely to withdraw its stimulus package until a recovery is well cemented.
Most Asian indices rebounded in positive zone on Tuesday, recovering from an early decline, helped by higher oil and metal prices. Key benchmark indices in Singapore, Japan and China were up by between 0.04% and 0.72%. However indices in South Korea and Taiwan were down 0.05% and 0.78% respectively.
Japanese industrial production rose for the ninth straight month in November on increased output of cars for foreign customers, but the nation's retail sales continued to fall, signaling that Japan's economic recovery remains fragile.
Data released Monday by the Ministry of Economy, Trade and Industry showed that output at Japanese factories and mines gained a seasonally adjusted 2.6% last month from October.
Hong Kong's exports rose for the first time in more than a year, helped by the global economic recovery, the government said Monday. Exports rose 1.3% in November 2009 from a year earlier to HK$234.1 billion, the government said, the first increase since October 2008. Imports in November also increased 6.5% from a year earlier to HK$254.8 billion.
Trading in US index futures indicated the Dow could rise 13 points at the opening bell on Tuesday, 29 December 2009.
US markets logged modest gains on Monday, 28 December 2009, with better holiday sales and rising commodities prices pushing US stocks to their sixth straight gain and new highs for 2009. US markets were closed on 25 December 2009 for Christmas holiday.
The Dow Jones industrial average rose 26.98, or 0.3%, to 10,547.08, its highest close since 1 October 2008. The Standard & Poor's 500 index rose 5.39, or 0.2%, to 1,127.78, while the Nasdaq composite index advanced 5.39, or 0.2%, to 2,291.08.
Figures from MasterCard Advisors' SpendingPulse, which track all forms of payment, show retail sales rose 3.6% from 1 November 2009 to 24 December 2009, compared with a 2.3% drop a year ago. Consumer spending is one of the biggest drivers of economic growth and is vital to a sustained recovery.
Data on US house prices from October and December consumer confidence are due later on Tuesday.
Short-term US interest rate futures prices fell Monday, continuing a trend from before Christmas that had the market participants believing that an improving economy will require higher rates. The July 2010 fed-funds contract, at Monday's settlement, priced in a 76% chance for the Fed to raise the Fed funds rate to 0.5% at its late June 2010 policy meeting, from the current historically low range of 0% to 0.25%. The same contract priced in a 64% chance for a 0.5% rate, as factored into the Christmas Eve settlement price, and a 50% chance as priced into Wednesday's (23 December 2009) settlement.
Even the May 2010 fed-funds contract is not ruling out the possibility of a rate increase as soon as the late April 2010 Federal Open Market Committee (FOMC) meeting. May 2010 fed funds, at Monday's settlement, priced in a 14% chance for a 0.5% rate, up from only a 6% chance on Christmas Eve.
The US Federal Reserve on Monday pressed ahead toward the creation of a new mechanism it says could be used to withdraw money from the banking system once policymakers decide to tighten monetary policy. The program, called the term deposit facility, would allow financial institutions to earn interest on loans of longer maturities to the central bank. The Fed already pays interest on banks' overnight reserves.
Back home, the BSE 30-share Sensex was up 34.91 points or 0.20% to 17,395.52, as per provisional closing. The Sensex opened 28.06 points higher at 17,388.67. It gained 125.44 points at the day's high of 17,486.05 in mid-afternoon trade, its highest level since 16 May 2008. The Sensex rose 12.02 points at the day's low of 17,372.63 in mid-morning trade
The S&P CNX Nifty was up 7.90 points or 0.15% to 5186.30 as per provisional closing. Nifty struck an intra-day high of 5214.60, its highest level since 5 May 2008.
The market breadth, indicating the overall health of the market was strong. On BSE, 1866 shares advanced as compared with 984 that declined. A total of 85 shares remained unchanged.
The total turnover on BSE amounted to Rs 3924 crore, lower than Rs 4,908.86 crore on Thursday, 24 December 2009.
Among the 30-member Sensex pack, 19 advanced while the rest declined.
Power generation stocks were in demand on renewed buying. India's second largest private sector power generation firm by net profit Reliance Infrastructure jumped 3.49% to Rs 1138.50 on reports its subsidiary Reliance Power Transmission has bagged two transmission projects worth Rs 4100 crore. It was the top gainer from the Sensex pack.
India's largest power generation firm by capacity NTPC advanced 1.13%. As per reports, NTPC has entered into a preliminary agreement with Bhutan government to construct a 600 megawatt reservoir-based hydel project on the Amo Chhu river in the neighboring country as part of its plans to expand into hydel sector.
Reliance Power jumped 4.97% on reports the first unit of the firm's 1,200 megawatt Rosa power plant in Uttar Pradesh started supplying electricity to UP Power Corporation, ahead of schedule.
India's largest private sector bank by net profit ICICI Bank gained 1.59% following a 0.81% rise in its American depository receipt on Monday. Reportedly the lender is raising up to Rs 1200 crore by selling bonds.
India's largest bank by net profit and branch network State Bank of India (SBI) was up 0.18%. SBI chairman O.P. Bhatt on 28 December 2009 said the bank does not foresee any immediate change in lending rates in the next six months. He claimed there was enough liquidity in the market and added that the banks are not facing any difficulties in providing credit to customers at this point of time.
India's largest private sector firm by market capitalisation Reliance Industries (RIL) rose 0.17% to Rs 1077. The stock moved in a narrow band of Rs 1075.20 and Rs 1088.70 during the day. RIL has successfully tested the design capacity of its massive eastern offshore Krishna-Godavari basin D6 field production facilities. A flow rate of 80 million standard cubic meters was achieved through the KG-D6 facilities and delivered to the pipeline, the company said in a statement released before market hours today.
Meanwhile, RIL during market hours today said that R. Ravimohan, an executive director who joined the company's board in August 2009, died at the age of 52 on Monday evening due to cardiac arrest. Ravimohan was involved in RIL's bid for the petrochemicals company LyondellBasell, media reports said.
India's largest oil exploration firm by sales Oil & Natural Gas Corporation dropped 1.04%. As per reports the company will lend Rs 4000 crore to its overseas unit ONGC Videsh for investing in a gas field off Myanmar's coast and a pipeline to carry the fuel to China.
Telecom shares gained on fresh buying, shrugging off reports that the auction of spectrum for third generation (3G) mobile services would be delayed by over a month and is likely to start by the end of February 2010.
India's largest listed cellular services provider by subscribers Bharti Airtel advanced 1.82%. The company on Monday said it had launched wholesale data services for the Middle East.
India's second largest listed cellular services provider by subscribers Reliance Communications gained 0.29%. India's third largest listed cellular services provider by subscribers Idea Cellular Services rose 0.51%.
Meanwhile as per a report, the Indian telecom industry had an awesome run in 2009, adding some 170 million phone connections to take the subscriber base to nearly 550 million. The country's tele-density went up to an impressive 46.32% at the end of November 2009, against 32.34% a year ago.
Select auto stocks erased early gains on profit booking after a recent advance on the back of strong sales in the month of November 2009 and higher advance tax payment in the third quarter. India's top small car marker by sales Maruti Suzuki India was unchanged Rs 1565.15 after striking day's high of Rs 1583.75.
India's largest tractor marker by sales Mahindra & Mahindra (M&M) was down 0.62% to Rs 1055.25, retracing from day's high of Rs 1074.
However India's top truck maker by sales Tata Motors advanced 0.90% to Rs 787. The stock hit a 52-week high of Rs 792.75 in intra-day trade.
Software pivotals declined on profit booking after a recent strong upmove which had propelled some of the pivotals to 52-week highs.
India's third largest software services exporter Wipro lost 1.74%. The stock had struck a 52-week high of Rs 699 on 24 December 2009.
India's second largest software services exporter Infosys fell 0.40%. The stock retraced from a lifetime high of Rs 2600 in intra-day trade today, 29 December 2009. India's largest software services exporter TCS declined 0.75%.
The rupee was trading at 46.67/68 against the dollar, slightly weaker than 45.65/66 on Thursday, 24 December 2009. A weak rupee boosts revenues of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Ranbaxy Laboratories rose 0.10% to Rs 520.55. The stock had declined to day's low of Rs 499 after a plant in Gloversville, New York, run by its unit Ohm Laboratories Inc. received a warning letter from the US drug regulator for manufacturing problems. The Food and Drug Administration cited violations of Good Manufacturing Practices between July and August at the plant's liquid manufacturing facility, Ranbaxy said.
India's largest pharma firm by market capitalisation Sun Pharmaceuticals lost 2.15% to Rs 1530 on selling pressure. It was the top loser from the Sensex pack.

Sensex at its 19 month’s high

Today, Sensex mange to close at 17401.56, ending at its 19th month’s high. Nifty on the other side, touched 5214, ending 9.55 points higher, making a its new 2009 high.

The day began on a strong note, with the NSE Nifty touching a new high for the year early in the morning. However, shortly the key indices lost steam and hit the day’s low. Indices made several attempts to go higher, but it go hold of some resistance every time. Markets saw some profit booking in its last half an hour, Nifty felt nearly 30 points from its days high before closing.

Financial stocks led gainers, with investors keen on the sector’s outlook in a growing economy despite the hurdle of expected tightenings in monetary policy from next month.

Top private lender ICICI Bank rose 1.7 per cent to Rs 877.65 and top lender State Bank of India rose 0.1 per cent to Rs 2,220.85. Mortgage lender Housing Development Finance Corp rose 1.25 per cent to Rs 2,685.10.

NMDC gained 2.8 per cent to Rs 425.75. The government said it planned to sell an 8.4 per cent stake in a follow-on offer in the state-run miner before the end of March, which would raise about $3 billion based on current market values.

Among the BSE sectoral indices, Consumer Durables, Power and Metal indices were up 0.6-1%. BSE Banking, Capital Goods and PSU indices posted moderate gains. Pharma was a big loser after reports that top drugmakers will be asked to pay hefty sums for overcharging. IT and Realty shares were also soft.

JSW Energy IPO Listing date details

JSW Energy IPO to list on 4th Jan’ 2010. JSW Energy will opened its Initial Public Offer (IPO) on December 7, to raise Rs 2,700 crore. The issue will close on December 10.

SW Energy has 860 Mw of operational generating capacity and 2,790 Mw of generating capacity in the construction or implementation stage. In addition, it has power generation projects at an early stage under development, with a proposed combined installed capacity of 7,740 Mw.

IPO Listing Detail’s :

Listing Date: 4th January 2010, (Monday)
NSE Symbol: JSWENERGY
ISIN: INE121E01018
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 100 Per Equity Share (Rs 95 for Retail)

The equity shares are proposed to be listed on Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. The book-running lead managers included JM Financial Consultants, Kotak Mahindra, ICICI Securities, IDFC-SSKI, JP Morgan, SBI Capital, Morgan Stanley and IDBI Capital.

In the recent IPOs, power sector companies like Adani Power had raised Rs 3,020 crore and Indiabulls Power raised Rs 1,700 crore. India is facing a shortage of about 25,000 Mw power during peak time. Plans are to add close to 78,000 Mw of power during the current five-year plan.

What analysts expect in 2010

Notwithstanding the huge gains seen in 2009 and despite some challenges going ahead, analysts expect the overall trend to remain positive in the next year as well

After a stellar performance in 2009, the Indian stock market is set to move higher in 2010 believe most research houses and brokerages. The performance, however, may not be as good as in 2009, due to last year’s strong gains and the challenges in 2010 in terms of withdrawal of stimulus packages, higher interest rates and so. However, the brokerages expect the overall trend to be positive, and they have a target for the BSE Sensex, which ranges 19,000-21,000 by end-December 2010 and March 2011. To know what some of the prominent brokerages feel about the outlook for 2010, read the below extracts:

MORGAN STANLEY (MS)

The key debate is that investors are looking at several headwinds for equity markets in 2010. A lot of the coming growth acceleration seems to be priced in, inflation is likely to rise and cause tightening, whereas equity valuations appear middling. Amidst these concerns, and since leading indices have more than doubled in less than nine months, where is alpha going to come from in 2010? In a report last month, the brokerage has identified seven themes as its highest conviction ideas for 2010.

Buy state-owned banks: RBI is likely to start raising rates in January 2010. Rising rates favour Indian banks as they run a maturity mismatch on their balance sheets (liabilities have a longer maturity). Thus, NIMs will rise, which coupled with acceleration in loan growth (which trails IIP growth), will help earnings. The stocks of state-owned banks trade at better valuations than their private counterparts and, will also be helped by a declining fiscal deficit, which will likely cap long bond yields. MS’ favourite stock is SBI.

Avoid Technology: Tightening by RBI will put upward pressure on the rupee with negative consequences for technology stocks, which have a negative correlation with the rupee’s movement. Tech stocks have done particularly well over the past six months and also suffer on a relative basis in an accelerating domestic growth environment.

Buy Energy: Energy, especially Reliance Industries, has delivered its worst relative performance ever on a trailing-six-months basis. The sector correlates positively with crude oil, short-term yields (read: local inflation) and industrial production. Thus, it provides a hedge against a spike up in crude oil prices.

Buy Industrials: Acceleration in industrial growth will help close the output gap faster than what is possibly in the price right now. This will help a new private capex cycle to start in 2010 and further boost performance of industrials. MS’ favourite stock: Larsen & Toubro.

Shift bias from Rural to Urban plays: No doubt rural growth remains very strong, helped by rising food prices and government spending. Yet at the margin, urban growth will close the gap v/s rural growth as industrial activity picks up. Two-wheeler and large cap staple stocks tend to correlate negatively with industrial growth and should be avoided in 2010. In contrast, media and niche mid-cap staples may still perform well.

Buy mid-caps: The broader market is likely to generate faster earnings growth of around 25 per cent in 2010, and trades at better valuations than the narrow market. Accordingly, it could outperform the narrow market.

Stock picking could be in vogue in 2010, market to be driven by earnings: A high market effect, high sector correlation and middling micro factors such as valuation, fundamental and return dispersion sets us up for a better stock picking environment in 2010. Most of the market returns in 2009 have come from a PE re-rating and as the key driver of returns shifts to earnings in 2010, so will the key driver of stock prices from macro to idiosyncratic stock related factors.

Sector portfolio changes: MS has added 100 basis points each to Financials and Energy, and reduced Consumer Discretionary and Technology by similar amounts. Consumer Discretionary has been the best performing sector over the past two years; most of the growth story is in the price. MS is now overweight Energy, Financials and Industrials and underweight Healthcare, Materials, Technology and Utilities.

UBS INVESTMENT RESEARCH

Indian markets will continue to gain in 2010 due to: 1) the strong economic growth outlook (GDP growth estimated at 9 per cent for 2010-11) and 2) strong outlook for earnings growth (forecast to grow 21 per cent in 2010-11), which are likely to attract institutional inflows.

What are the likely key themes for 2010?

* A pickup in infrastructure spending (L&T, Nagarjuna, Lanco)

* Continued momentum in consumer spending (Maruti, Indiabulls Real Estate)

* The banking sector to benefit from higher credit growth, and a slowdown in NPA accretion

* Capital raising to kick-start the capex cycle, driving demand for intermediate goods (Ambuja) and services (L&T, Tata Power)

* Reforms in banking and insurance (Union Bank, ABNL)

What may surprise on the upside or downside?

Upside surprises are likely if the government delivers on reforms. Downside risks could come from a significant rise in global commodity prices or if the government fails to deliver on expected reforms.

Market valuation and targets, highlighted stocks and sectors

UBS’ March 2011 Sensex target is 20,000. It is bullish on India in the long term given:

* Its real GDP growth expectation of 8-9 per cent per annum for the next 10-20 years

* Attractive demographics with a rapidly falling dependency ratio

* Low penetration of products and services

* A stable government.

Key overweight sectors: Auto, Telecom, Cement, Real estate and Pharmaceutical

CREDIT SUISSE (CS)

2009 was one of the strongest years for Indian equities: CS’ cautious optimism of a recovery in second half of 2009 for India has been vindicated. The economy remained resilient and saw a strong rebound, in spite of the poor monsoon season. The equity market rebound in India played out in three phases. Initially led by shoots of recovery in global markets in March, the rally was fueled mid-year by a PE re-rating caused by the surprise positive political outcome. The up move continued into the year-end, supported by the earnings upgrade cycle. In retrospect, it turned out to be one of the best equity years ever.

The key question now for equity investors post this euphoric rally in 2009 is whether 2010 will continue to be a year of equities. Is the world likely to face a double dip? What will the market repercussions be of central banks gradually exiting stimulus and sucking out excess liquidity?

CS expects 2010 to be a positive year for Indian equities (though the move will not be as linear as in 2009), driven by improving GDP and earnings growth and supportive government action on the reform front. It expects Q1 2010 to be choppy, with domestic exit of monetary and fiscal stimulus and intermittent concerns on liquidity-driven global asset bubbles weighing on investor sentiment. But, it would use these volatilities to add equity exposure as it remains confident of macro change-driven growth prospects for India.

It expects 2010 to be the year of execution and implementation of some key long-awaited reforms by the government. And, its base case December 2010 scenario for the Sensex is 19,000. It believes that sustained earnings acceleration can take the market to an optimistic scenario of 22,000.

CLSA

Notwithstanding the strong rise in the Sensex in 2009, CLSA see a 14 per cent return for the market in 2010, as pick-up in the investment cycle and global recovery drive the next leg of earnings upgrades. However, Q1 2010 will be choppy, on revival of macro concerns like inflation, monetary and fiscal tightening and the large pipeline of pending equity issuances; autos, property and power look most vulnerable. ICICI Bank, IDFC, Infosys, Sun Pharma and Tata Steel are CLSA’s top ‘buys’.

A super 2009 doesn’t preclude a healthy return in 2010

* Of the six instances of over 50 per cent annual return during the past three decades, only two - 1986 (minus 0.9 per cent) and 2000 (minus 21 per cent) saw negative returns in the following year.

* Accelerating GDP growth and earnings recovery can offset pressures from monetary tightening, as seen in 2004.

* Capital goods, Banks, Healthcare are seen to be late cycle outperformers; autos and consumers tend to underperform.

2010 SENSEX TARGETS
Brokerage	Sensex target	EPS (Rs) FY10E	FY11E
UBS *	20,000.0	928.0	1,123.0
BNP Paribas	21,000.0	868.0	1,109.0
CLSA	19,250.0	828.0	1,033.0
Credit Suisse	19,000.0	NA	NA
* Target is for 12 months ending December 2010, except for UBS wherein the target is for March 2011                        E: Estimates

Q1 2010 looks set to be volatile…

* With the revival of macro concerns on inflation, monetary and fiscal tightening and a lull in the earnings upgrade cycle markets can be quite volatile in the January-March quarter.

* Analysis of previous bouts of inflation reveals that markets can withstand inflation during a recovery phase; cost push inflation in a phase of weak growth hurts.

* CLSA sees rising WPI inflation in Q1 leading to CRR and reverse repo rate hikes.

* While the market is anticipating tightening in monetary policy, surprises on the degree and timing of policy actions could be a source of volatility.

* An over $10 billion equity pipeline, excluding targeted $3 billion of government disinvestment, will also weigh on performance in Q1.…but the next leg of recovery will also unfold

* The recovery in consumption is on track and will be supported by improving hiring trends. Investment growth has, however, lagged.

* Capex intentions are rising and project starts in roads, power should get the cycle going. RBI’s recent measures will help reduce cost of financing infrastructure.

* With over 70 per cent of Sensex earnings linked to investment upturn and global recovery, the earnings upgrade cycle should resume in 2010-11.

Sector stance and top picks

* CLSA’s 12 month target for the Sensex is 19,250; with the expected rise in risk-free rates, it does not see prospects for re-rating of the current P/B multiple.

* Industrials, IT and materials which play into the second leg of the recovery are key over-weights; Consumer discretionary (autos), Power and Energy are key under-weights.

* CLSA’s top buys are ICICI Bank, IDFC, Infosys, Sun Pharma and Tata Steel.

* Its biggest under-perform/sells are DLF, NHPC, Ambuja Cement and Tech Mahindra.

Top 100 Stocks with the Highest P/E

Following is the list of stocks having the maximum P/E (PE). For people who don’t know what P/E is about I recommend them to check it out here.

The list is generated as on 20th December 2009

But at the same time it should be remembered that P/E is not only a single factor that should be checked or considered while purchasing a stock, there are other factors involved too such as the YoY profits of the company, EPS, etc..

1 Shree Global Tr P/E 13,825.00
2 Kailash Ficom P/E 7,175.00
3 Dalal Street In P/E 7,103.27
4 Intra Infotech P/E 4,185.00
5 Prraneta Ind P/E 2,565.00
6 Pace Textiles P/E 3,008.00
7 KGN Industries P/E 2,502.86
8 Sterlite Projec P/E 2,094.17
9 Dhruv Estates P/E 2,000.00
10 Kartik Invest P/E 1,879.58
11 Padam Cotton P/E 1,802.50
12 Simplex Trading P/E 1,652.19
13 Bio Whitegold P/E 1,393.00
14 Geefcee Fin P/E 1,288.44
15 Nikki Global Fi P/E 2,003.33
16 MMTC Ltd P/E 1,125.87
17 Sterling Inter P/E 7,625.00
18 Beta-Kappa Inve P/E 873
19 JMD Telefilms P/E 875
20 Dil Vikas P/E 997.14
21 Shricon Ind P/E 777.78
22 Cairn India P/E 684.88
23 Mavens Biotech P/E 658.82
24 Int Housing Fin P/E 532.5
25 GMR Infra P/E 516.92
26 Indiabulls Real P/E 589.19
27 Citi Port Fin P/E 997.5
28 Comfort P/E 451.25
29 Spectacle Ind P/E 435.88
30 GVK Power P/E 432.27
31 Wheel & Axle Te P/E 431.82
32 Global Cap Mkts P/E 1,648.00
33 Religare Enterp P/E 425.88
34 Kapil Cotex Ltd P/E 372.86
35 Indcap Financia P/E 367.5
36 Sunteck Realty P/E 329.21
37 Supreme Holding P/E 977.5
38 BF Utilities P/E 466.89
39 Indo Green P/E 303.33
40 Jaybharat Texti P/E 492.47
41 Visisth Merc P/E 256.4
42 Kadamb Construc P/E 254.72
43 Tatia Global P/E 253.85
44 Amani Trading & P/E 226.49
45 Pharmasia P/E 667.38
46 Standard Cables P/E 256.43
47 Devine Impex P/E 255.5
48 Jindal Online P/E 194
49 Vantage Corp P/E 222
50 JSW Holdings P/E 174.84
51 MVL P/E 171.71
52 Reliance Natura P/E 159.32
53 Oregon Commerci P/E 168.81
54 CNI Research P/E 155.77
55 Sapan Chemicals P/E 309
56 Transgene Biote P/E 355
57 Kwality Dairy P/E 162.47
58 Landmark Prop P/E 147.5
59 Jhunjhunu Inv P/E 147
60 Take Solutions P/E 229.29
61 JM Financial P/E 145.89
62 Deltron P/E 144.57
63 Integra Switchg P/E 143.67
64 Titan Secu P/E 238
65 Linear Poly P/E 141.6
66 Sanket Internat P/E 139.58
67 DLF P/E 183.32
68 JPT Securities P/E 136.54
69 IRB Infra P/E 132.32
70 Neemtek Organic P/E 166.36
71 Rotam Comm P/E 167
72 Sarthak Global P/E 176.88
73 RIDS Securities P/E 173.18
74 Jai Corp P/E 236.51
75 KLG Capital P/E 115.61
76 Vishvaprabha P/E 111.9
77 Asian Indep Net P/E 111.25
78 Reliance Power P/E 110.45
79 Jindal Capital P/E 136.18
80 Jalgaon Re-Roll P/E 109.85
81 Modella Woollen P/E 194.44
82 Bombay Paints P/E 148.41
83 Gammon Infra P/E 121.25
84 Trade Wings P/E 208.61
85 Alchemist Real P/E 125
86 Avance Tech P/E 104
87 Kinetic Trust P/E 137.5
88 Andrew Yule P/E 129.15
89 Softpro Sys P/E 168.97
90 Advanta P/E 1,528.38
91 Principal Ca P/E 102.99
92 Edelweiss Cap P/E 115.24
93 Integra Capital P/E 220.6
94 SP Capital Fin P/E 164.71
95 Media Matrix P/E 165
96 Aries Agro P/E 3,602.50
97 IND-AGIV Commer P/E 130.45
98 Nirlon P/E 227.8
99 M-Touch Finance P/E 116
100 Lee and Nee Sof P/E 92

Daily News Roundup - Dec 29 2009

Reliance Industries has updated its non-binding proposal to acquire LyondellBasell, as per media reports; RIL’s new offer has a higher cash component of US$5-6bn from the earlier offer of US$2bn. (FE)
SAIL and Tata Steel have hiked steel prices by up to Rs 2,000/ton with immediate effect on the back of rising demand. (ET)
Reliance Power has started power generation at its 1,200MW Rosa Power Project in Shahjahanpur district of Uttar Pradesh. (BS)
SBI to set up wind power projects in three states with a combined capacity of 15.5 Mw for captive consumption at various offices and branches. (BS)
Bajaj Auto has phased out two more models thereby phasing out four bike models in four months. (BS)
Reliance Power Transmission Ltd, a subsidiary of Reliance Infrastructure, is believed to have bagged two transmission projects worth Rs 41bn connecting six states. (BS)
Idea secures Rs95bn credit line for 3G push. (ET)
Dr Reddy’s Labs plans to launch new generic drugs in various therapeutic segments to push domestic operations. (BS)
US FDA has issued a warning letter to Ranbaxy’s American subsidiary, OHM Laboratories, for violating current good manufacturing practice. (ET)
Dabur India’s shareholders to meet in the first week of February to discuss merger proposal of Fern Care Pharma with the company. (ET)
OBC plans to expand its footprint in South India by acquiring a bank. (BS)
Glenmark Generics receives tentative approval from US FDA for generic pramipexole dihydrochloride tablets used in the treatment of parkinson disease. (ET)
ICICI Bank plans to raise Rs40bn of capital through Upper Tier-II and Tier-I perpetual bonds to support business growth. (BS)
ONGC has awarded US$162mn engineering and construction contract for an oil well platform project at the Mumbai High Field to Abu Dhabi-based National Petroleum Construction Company. (BS)
Goldman Sachs is poised to invest US$115mn in Max India which will be used by the company to fund its insurance, healthcare and specialty plastics businesses. (BS)
Jet Airways has received the Cabinet Committee on Economic Affairs approval to raise up to US$400mn. (FE)
PowerGrid plans 7 transmission corridors at an investment of Rs500bn to wheel power from new projects to North, West regions. (BL)
Thermax is designing and building a 250KW solar power plant at Shive village, near Pune. (BL)
Infosys Technologies has been selected to implement a Rs3.9bn IT project for Karnataka's power distribution utilities. (FE)
Fortis Hospitals plans to invest Rs2.5bn to expand its facilities pan-India. (FE)
Promoters of GMR Group are looking to exit their sugar business. (TOI)
Tata Motors says all existing bookings of the Nano will be delivered at current prices, notwithstanding the rising input costs. (TOI)
Government hopes to raise over Rs230bn from the disinvestment of NMDC; the follow-on offering for the PSU is likely to take place in Mar’ 10. (TOI)
Generation Corp. of AP has secured the State Government nod to go ahead with the first phase of 2,100MW gas-based power project planned at Karimnagar district of the State. (BL)
Hansen Transmissions sees opportunities in the Chinese market after Suzlon Energy sold its controlling stake. (DNA)
Domestic airlines such as Jet Airways, Air India, Kingfisher Airlines and low cost carriers are considering raising air fares by up to 25% in January. (ET)
The government to appoint a global consultant to evolve a pricing formula for crude produced at RIL’s Krishna-Godavari basin fields and Cairn India’s barmer oil fields. (ET)
Unitech plans to raise US$700mn through FCCBs has run into trouble with the finance ministry and the RBI objecting to exempt it from a three-year lock-in clause applicable to such investments in construction. (ET)
Ansal API will raise around Rs6.5bn through QIP. (FE)
Infosys and Patni Computers amongst 14 firms eligible to bid for India’s almost US$10bn technology-led power sector modernisation programme. (ET)
L&T and Lanco Infratech are developing two key hydropower projects in the hilly Rudraprayag district of Uttarakhand to face the heat of the ‘save river campaign’. (BS)
BoI to offer home loans at 8%. (ET)
Andhra Bank has raised funds to the tune of Rs6bn by issuing bonds. (ET)
Rolta India has bought back FCCBs worth US$15mn from the international market at a discount rate. (ET)
Binani Cement has signed long-term supply agreements with shipping companies to save on logistical costs. (ET)
Lingaraj open cast coal mines under the command area of Mahanadi Coalfields Limited (MCL), linked to the 3,000MW NTPC Kaniha plant, the second largest power plant in the country, is facing closure due to problems in land availability. (BS)
UTV and Sun are in talks for Tamil movie channel under which UTV will dub movies from Hindi, English and other languages. (BS)
Ennore Coke plans to raise Rs1.3bn through PE. (BS)
The auction of spectrum for third generation (3G) mobile services would be delayed by over a month and is likely to start by the end of February. (BS)
Mobile operators winning the auction for third generation (3G) mobile spectrum may be asked to pay the entire bid amount upfront within 20 days after the bidding process is completed. (BL)
Foreign exchange reserves fall by US$2.1bn to US$284bn, for the week ended December 18. (BL)
RBI’s recent diktat to augment their loan loss coverage ratio to 70% by Sep’ 10 has prompted some banks to put a part of their bad loans portfolio on the block. (BL)
Finance Ministry to raise the export duty on iron lumps from the current 5% to 10%; government also imposes a 5% export duty on iron ore fines. (BL)
Food Inflation eases to 18.65% for the week ended December 12, from 19.95% in the previous week. (ET)
Six core industries grew at a three-month high annual rate of 5.3% in November 2009. (ET)
SEBI may hike open offer size to 100% from 20%. (TOI)
India to grow at 7% this fiscal, says PM. (TOI)
GST introduction may be delayed by a year. (TOI)
Petroleum ministry plans to build in-competition principles in the functioning of the proposed regulator for long-distance gas pipeline networks so as to reduce natural monopolies in the gas distribution sector. (FE)
Foreign direct investment for the month of November surged by 60% to US$1.7bn. (FE)
The Railways has decided to link freight rates for different commodities to their respective price index or other benchmarks including prices on the derivatives exchanges. (ET)
The date for rolling out the Goods and Services Tax could be announced on January 8, 2010. (ET)
The government may modify the draft direct tax code to retain tax shelters on interest and principal repayments for home loans to make the proposed new code more attractive. (ET)
RBI has hiked the daily ceiling for mobile banking to Rs50,000 from Rs15,000. (ET)
Private fuel retailers may also get subsidies. (ET)
Government clarified that manufacturers that carry out production as well as repackaging activity in the tax-free zone of Himachal Pradesh and Uttarakhand will be able to enjoy tax exemption. (ET)
Government approves a plan to develop 352km of highways with an investment of Rs297mn. (ET)
Government extended for the third time the ban on import of dairy products, including chocolates, from China for another six months. (ET)
FDI policy to be updated every six months. (ET)
Peak customs duty unlikely to be lashed this year. (ET)

New high in the offing

Reach high, for stars lie hidden in your soul. Dream deep, for every dream precedes the goal.

After a really long weekend, the market could be headed for a new high before bidding farewell to the year 2009. However, with only three trading sessions and F&O expiry one will have to brace for a volatile week. Trading might be thin, both here as well as overseas, as many players would have opted for an extended year-end holiday. As for today, we see a modestly higher opening for the key indices and sideways movement. We would urge some caution at this juncture, as the market has already had a spectacular rally this year.

The headroom for further advance is limited. One will have to be extremely choosy and careful. Factors like rising inflation, an impending hike in interest rates and high fiscal deficit could weigh on the sentiment. There are also worries as to how different nations go about withdrawing the emergency stimulus measures, and how it may affect the economic recovery. On the corporate front, future earnings growth will have to reflect pick-up in demand rather than just cost cutting.

US stocks were higher at the open on Monday, with all three major stock indicators extending their year highs, thanks to gains across Asia and much of Europe. Investors continued to seek out yield in currencies markets on Monday, as the year-end rally in risk appetite continued. Investors made the best of thin trading conditions to extend the end-of-year rally which has pushed global stocks to within a fraction of year highs. Strong economic data from Japan helped ease fears that the country would suffer a double-dip recession and pushed the stock market to a 14-month high.

FIIs were net buyers in the cash segment on Thursday at Rs7.07bn on a provisional basis. The local funds were net sellers of Rs1.1bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs8.99bn. FIIs were net buyers of Rs13.53bn in the cash segment on Thursday. Mutual Funds were net sellers of Rs1.01bn on the same day.

US stocks ended a choppy session higher on Monday, with the Dow, S&P 500 and Nasdaq managing fresh 2009 highs on some optimism about a recovery in retail sales and gains in select sectors.

The Dow Jones Industrial Average rose 27 points, or 0.3%, ending at the highest point since Oct. 1, 2008. The S&P 500 index finished almost flat, and ended at the highest level since Oct. 1, 2008. The Nasdaq rose 5 points, or 0.2%, ending at the highest point since Sept. 3, 2008.

Stocks had risen in the morning as investors welcomed a report showing some improvement in holiday retail sales, lost steam in the afternoon and then recharged by the close. Stocks have now risen for six straight sessions. All financial markets were closed early on Christmas Eve and were closed for Christmas.

The market is back to levels not seen since the fall of 2008, around the time of the collapse of Lehman Brothers. Year-to-date, as of Monday's close, the Dow is up just over 20%, the S&P 500 is up 25% and the Nasdaq is up 45%. But all three major indexes are up even more substantially since hitting multi-year lows on March 9 amid the height of the financial crisis.

All financial markets are open on Thursday ahead of New Year's Eve, but are closed Friday for New Year's Day.

Sales at US retailers look to have risen in the all-important holiday shopping period. Early estimates from the National Retail Federation suggest sales in November and December fell 1%, an improvement from a 3.4% drop for the same period a year ago.

Sales at US retailers rose 3.6% between November 1 and Christmas Eve, according to a report released by SpendingPulse, a unit of MasterCard, Reuters reported.

Shares of Fannie Mae and Freddie Mac rallied after the Treasury Department removed its $400 billion cap on the amount of money it will spend to keep the companies afloat. Treasury said that it will now increase support depending on how much each company loses per quarter.

Fannie and Freddie are government-run mortgage lenders that own or guarantee about half the mortgages in the country. But the two stocks were an exception in an otherwise weak bank sector.

COMEX gold for February delivery rose $3.10 to settle at $1,107.90 an ounce. Gold closed at an all-time high of $1,218.30 an ounce earlier this month.

US light crude oil for February delivery rose 72 cents to settle at $78.77 a barrel on the New York Mercantile Exchange.

The dollar gained versus the euro and against the yen.

Treasury prices fell, raising the yield on the 10-year note to 3.84% from 3.80% late on Thursday. Prices had been even lower ahead of the latest auction of two-year note, which saw lighter demand than in recent months.

European stock markets hit fresh 14-month highs, with Greek stocks firming after the government passed a budget for 2010, and with utilities and financials ranking among the strongest sectors. Equity volumes were thin, however, with London closed for a holiday.

European stock indexes last week climbed to highs last seen in October 2008 ahead of the Christmas holiday, and the markets went on to surpass those levels at the start of the final week of 2009.

The pan-European Dow Jones Stoxx 600 index rose 0.5% to 253.17, its loftiest in 14 months. In Paris, the CAC-40 rose 0.9% to 3,947.15, eclipsing the previous 14-month closing high of 3,912.73 set Dec. 24. The German DAX index climbed 0.8%, breaking through the 6,000 barrier for the first time since September 2008.

The BSE Sensex gained 130 points to end at 17,360 after touching a high of 17,413 and a low of 17,197. The NSE Nifty advanced 34 points to end at 5,178.

In Asia, the Nikkei in Japan was up 1.5%, while Australia's S&P/ASX ended higher by 1%. However, the Shanghai SE Composite fell 2.5% and Hang Seng index in Hong Kong was up 0.9%.

In Europe, stocks were trading in the green. The DAX in Germany was up 0.5% and the CAC 40 index in France was up 0.2%. The FTSE in the UK was up 0.3%.

Coming back to India, all the BSE sectoral indices ended in the green, the Auto index was the top gainer, adding 1.4%, followed by the Metal index that was up 1.1% and the BSE Consumer Durables index was up 1%. Even the BSE Mid-Cap index gained 0.7% while the BSE Small-Cap index was up 0.5%.

Among the 30-components of Sensex, 25 stocks ended in the positive terrain and 7 ended in the red. Tata Motors, Hindalco, Reliance Infra, Tata Steel and Hero Honda were among the top gainers.

On the other hand, among the major losers were JP Associates, Bharti Airtel, RCom and ICICI Bank.

Outside the frontline indices, the big gainers in the broader market were Shriram Transport Fin, HCC, BEML, Fortis Health and Apollo Hosp. On the other hand, losers included REI Agro, Idea, REC and KSK Energy.

BL Kashyap and Sons

We recommend a buy in the stock of BL Kashyap and Sons from a short-term horizon. It is evident from the charts of the stock that on December 24 it made an upward break through of a narrow sideways consolidation band between Rs 375 and Rs 420 that had been in place since early November. The stock appears to have resumed its intermediate-term uptrend which has been in motion from March low of Rs 86 (52-week low). The recent surge in stock price breached its 21- and 50-day moving averages conclusively. We observe that there is an increase in volumes over the past three trading sessions. Reinforcing the bullish momentum, the daily relative strength index (RSI) has entered in to the bullish zone and weekly RSI is on the verge of entering this zone from the neutral region. The daily moving average convergence and divergence (MACD) indicator has signalled a buy and is likely to make an entry in to the positive territory and the weekly MACD is featuring in this territory. Our short-term outlook is bullish for the stock. We expect it to move up further until it hits our price short-term price target of Rs 495. Traders with short-term perspective can consider buying the stock while maintaining a stop-loss at Rs 425.
via BL

Precious metals add some more shine

Prices rise as dollar continues to slip
Bullion metal prices went up on Monday, 28 December 2009. Prices rose as the dollar fell and due to rising geo political tensions in the Middle East.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Monday, gold for February delivery ended at $1,107.9 an ounce, higher by $3.1 (0.3%) an ounce on the New York Mercantile Exchange. Earlier during the day, gold was trading lower. Last week, it had dropped below the $1,100 level for first time in more than one and half months. Last week, gold shed 0.6%. The metal fell for four straight weeks.
Gold ended November 2009 higher by 13%. Before that, for the third quarter it ended higher by 8.7%. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year. On a year to date basis, gold price is higher by 26.4%.
Gold has come under pressure since early December, with the dollar having risen steadily on expectations that the Federal Reserve will next year pull back on measures to support the economy.
On Monday, December Comex silver futures ended higher by 12 cents (0.7%) at $17.56 an ounce. Last week, silver registered 0.7% gain. The metal has gained 54.3% this year until date.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.4%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.

Party mood at Wall Street

Jobless claims drop more than expected pushing stocks to fresh fifty-two week high
A deeper-than-expected drop in initial jobless claims bringing it to the lowest level since September 2008, helped push the U.S. stock indices higher for the fifth straight session of gains on Thursday, 24 December, 2009. Wall Street witnessed half a day of trading on that day because of Christmas Eve. With Thursday's gains, indices managed good gains for the week. Wall Street was closed on Friday, 25 December 2009, due to Christmas Day celebration.
For the week, the Dow Jones Industrial Average ended higher by 191.21 (1.9%) points at 10,520.1. Nasdaq ended higher by 74 (3.3%) points at 2285.69. S&P 500 ended higher by 24 points (2.2%) at 1126.48. All ten economic sectors ended higher for the week led by the materials, technology, and energy sectors. The utilities sector was one of laggard.
The week's other corporate developments did not have much to lend support to the market. In the earning area, Walgreen and ConAgra Foods posted slightly better than expected quarterly earnings. Economic data were mixed in nature.
In the earlier part of the week, it was reported that existing home sales rose by a stronger-than-expected rate of 7.4% month-over-month to an annualized rate of 6.54 million units exceeding market estimates of 6.25 million units. The news helped lift the stock market. But later in the week, November new home sales disappointed with an 11.3% month-over-month drop to an annualized rate of 355,000, well below the forecast of 438,000. Still, the data had a limited impact on the market.
Also, the third quarter GDP did not grow as strongly as originally thought. It was reported during the middle of the week that third quarter GDP grew at a 2.2% annual rate, down from the second revision figure of 2.8% and missing the consensus of 2.8%. The lower reading was due to revisions to personal consumption expenditures, gross private domestic investment, change in private inventories, imports and government spending.
The stock market on Thursday, 24 December, 2009, marked an extremely slow session, as expected, as many market participants were off their desks as they took an extended weekend ahead of Christmas. But the economic data of the day managed to push stocks higher.
On Thursday, The Dow Jones Industrial Average ended higher by 54.03 points at 10,520.1. The Nasdaq ended higher by 16.05 points at 2285.69. S&P 500 ended higher by 5.86 points at 1126.48.
The Labor Department in US reported on Thursday, 24 December, 2009 that the first-time claims for state unemployment benefits fell a seasonally adjusted 28,000 to 452,000 in the week ended 19 December, 2009, hitting the lowest level since September 2008. The figure was lower than expectation. The four-week average of new claims fell 2,750 to 465,250, which also hit the lowest level since September 2008.
Initial claims represent job destruction, while continuing claims represent job creation. Benefits are generally available for those who lose their full-time job through no fault of their own. The four-week average smoothes out distortions in the week-to-week data.
Separately, the Commerce Department in US reported on Thursday, 24 December, 2009 that orders for durable goods rose a seasonally adjusted 0.2% in November, 2009.
As per the report, a big drop in volatile aircraft orders was the main reason for the marginal rise in orders. There was a massive 32.6% drop in aircraft bookings. Excluding transportation goods, orders rose 2%. Orders in the latest report were stronger in every major industrial category outside of transportation. Orders for core capital equipment goods, a gauge of business capital investment, jumped 2.9%.
Crude prices shot up considerably higher once again on Thursday, 24 December 2009. Prices continued to rise as energy department reported a more than expected drop in crude supplies for last week a day before. Prices also rose as the dollar fell following couple of economic data.
On Thursday, crude-oil futures for light sweet crude for February delivery closed at $78.05/barrel (higher by $1.38 or 1.8%). Prices crossed $78 mark for the first time in December. Earlier during the day, it fell to a low of $76.17. For the week, crude ended higher by 4.9%.
In the currency market on Thursday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.1%. The dollar was weak against most of its counterparts following better than expected economic data.
Indian ADRs ended mixed on Thursday. Barring Dr Reddys, Wipro Technologies and Rediff.com, all other ADRs registered gains. Tata Motors was the largest gainer soaring 6.6%.
Trading volume is expected to remain low due to the ongoing holiday mood for next week.
For the year, Dow, Nasdaq and S&P 500 are higher by 19.9%, 44.9% and 24.7% respectively.

Market Trading Holidays - 2010 - NSE - BSE

01-Jan-10 Friday New Year
26-Jan-10 Tuesday Republic Day
12-Feb-10 Friday Mahashivratri
01-Mar-10 Monday Holi
16-Mar-10 Tuesday Gudi Padwa
24-Mar-10 Wednesday Ram Navmi
01-Apr-10 Thursday Annual Closing of Banks
02-Apr-10 Friday Good Friday
14-Apr-10 Wednesday Ambedkar Jayanti
27-May-10 Thursday Buddha Pournima
19-Aug-10 Thursday Parsi New Year
10-Sep-10 Friday Ramzan ID
30-Sep-10 Thursday Half Yearly Closing of Banks
05-Nov-10 Friday Diwali / LaxmiPuja*
17-Nov-10 Wednesday Bakri ID
17-Dec-10 Friday Moharram

The holidays falling on Saturday / Sunday are as follows:
27-Feb-10 Saturday Id-e-Milad
28-Mar-10 Sunday Mahavir Jayanti
01-May-10 Saturday May Day
15-Aug-10 Sunday Independence Day
11-Sep-10 Saturday Ganesh Chaturthi
02-Oct-10 Saturday Gandhi Jayanti
17-Oct-10 Sunday Dussera-Vijaya Dashami
07-Nov-10 Sunday Bhau Bhij
21-Nov-10 Sunday Gurunanak Jayanti
25-Dec-10 Saturday Christmas

Crude extends gains

Prices cross $78 mark for first time in December
Crude prices shot up considerably higher once again on Thursday, 24 December 2009. Prices continued to rise as energy department reported a more than expected drop in crude supplies for last week a day before. Prices also rose as the dollar fell following couple of economic data.
On Thursday, crude-oil futures for light sweet crude for February delivery closed at $78.05/barrel (higher by $1.38 or 1.8%). Prices crossed $78 mark for the first time in December. Earlier during the day, it fell to a low of $76.17. For the week, crude ended higher by 4.9%.
Crude ended month of November, higher by 0.4%. It reached a high of $82 earlier in October this year.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 44% since then.
In the currency market on Thursday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.1%. The dollar was weak against most of its counterparts following better than expected economic data.
The Labor Department in US reported on Thursday, 24 December, 2009 that the first-time claims for state unemployment benefits fell a seasonally adjusted 28,000 to 452,000 in the week ended 19 December, 2009, hitting the lowest level since September 2008. The figure was lower than expectation.
EIA reported earlier during the week that crude inventories fell 4.9 million barrels in the week ended 18 December 2009. The EIA also reported that gasoline inventories fell 900,000 barrels, and distillate stockpiles, which include diesel and heating oil, fell by 3.1 million barrels. Market was expecting a drop of 2 million and 1.3 million of crude and gasoline inventories respectively. Inventories dropped as net crude imports fell 0.8% to 7.68 million barrels a day.
In the latest meet at Angola yesterday, members of the OPEC oil cartel decided to make no changes to current production quotas. The decision was in line with market expectations. In keeping its quotas unchanged, OPEC cited "shrinking industrial production, low private consumption and high unemployment" in the global economy.
Among other energy products on Thursday, January gasoline added 0.8% to $1.9820 a gallon, January heating oil rose 1.2% to $2.0356 a gallon.
Also on Thursday, January natural gas lost 2.9% to $5.655 per million British thermal units
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
Future exchanges were closed on Friday, 25 December 2009 due to Christmas Day holiday.

Precious metals end higher for second straight day

Prices rise as dollar continues to stay weak
Bullion metal prices went up on Thursday, 24 December 2009. Prices rose as the dollar fell following couple of economic data. Nevertheless, yellow metal prices witnessed losses for the week. However, silver gained for the week.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Thursday, gold for February delivery ended at $1,104.8 an ounce, higher by $10.8 (1%) an ounce on the New York Mercantile Exchange. Earlier during the week, gold had dropped below the $1,100 level for first time in more than one and half months. For the week, gold shed 0.6%. The metal fell for four straight weeks.
Gold ended November 2009 higher by 13%. Before that, for the third quarter it ended higher by 8.7%. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year. On a year to date basis, gold price is higher by 26.1%.
On Thursday, December Comex silver futures ended higher by 25 cents (1.4%) at $17.44 an ounce. For the week, silver registered 0.7% gain. The metal has gained 53.6% this year until date.
In the currency market on Thursday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.1%. The dollar was weak against most of its counterparts following better than expected economic data.
The Labor Department in US reported on Thursday, 24 December, 2009 that the first-time claims for state unemployment benefits fell a seasonally adjusted 28,000 to 452,000 in the week ended 19 December, 2009, hitting the lowest level since September 2008. The figure was lower than expectation.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Market was closed on Friday, 25 December, 2009 due to Christmas Day holiday.

Copper goes up

Falling dollar increases the appeal of red metal
Copper prices rose higher at Comex on Thursday, 24 December 2009. Prices rose as the dollar fell following couple of economic data increasing the appeal of metals as an alternate source of investment.
At USA, copper futures for March delivery ended higher by 8.9 cents (2.8%) to 3.2925 a pound. For the week, copper ended higher by 2.3%. Copper ended November 2009 higher by 6.6%. On a year to date basis, copper has climbed 120%.
In the currency market on Thursday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.1%. The dollar was weak against most of its counterparts following better than expected economic data.
The Labor Department in US reported on Thursday, 24 December, 2009 that the first-time claims for state unemployment benefits fell a seasonally adjusted 28,000 to 452,000 in the week ended 19 December, 2009, hitting the lowest level since September 2008. The figure was lower than expectation.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.

Firstsource Solutions

Investors can retain their share holdings in Firstsource Solutions, a BPO player, considering the company's healthy vertical and geographic mix, the revival in the deal momentum and benefits that accrue from macro trends such as vendor rationalisation by clients.
At Rs 34, the share trades at 17 times its likely 2009-10 per share earnings. This is at a premium to most mid-tier IT companies, but at a steep discount to peers such as WNS and EXL Services. These two companies are listed in the US and trade at over 43 times earnings. Firstsource generates revenues at higher operating margins (close to 15 per cent) than these players.
With operations stabilising in verticals such as banking and financial services and client ramp-ups witnessed over the next two years, there may be sufficient room for capital appreciation.
The company had a challenging 2008, with pricing cuts and declining volumes and losses due to FCCB borrowings on the back of a depreciating rupee, but seems to have witnessed significant revival in volumes and stable pricing over the last three quarters. FCCB losses have also come down significantly.
For the first half of this fiscal, the company's revenues grew 16.8 per cent to Rs 973.2 crore, while from a loss in the first half of last fiscal, the company posted net profits of Rs 67.1 crore this time around.
In FY-09, Firstsource had seen its revenues grow by 33 per cent over FY-08 to Rs 1,749.4 crore, while net profits fell by 77 per cent to Rs 30.7 crore.
Client ramp ups
Firstsource derives its revenues from three verticals — healthcare, telecom and media and BFSI — by providing voice and transaction processing services. From excessive dependence on BFSI two-three years ago, the company now has a fairly healthy mix of revenues generated from verticals. Healthcare accounts for 37.6 per cent of revenues, while telecom and BFSI contribute 38.1 per cent and 22.4 per cent respectively. MedAssist, the US- based revenue cycle management company in the healthcare sector, that it acquired a couple of years ago, has enabled it to tap and expand its client base.
With the healthcare reform legislation on the anvil in the US, there is expected to be an expansion of Medicaid, a healthcare programme for low-income groups that would require high enrolment services, an area which is Firstsource's key competency.
The company has witnessed a ramp up in revenues from its top five customers over the last three quarters, suggesting that volumes are starting to revive. Reinforcing this fact is the momentum in new deal wins by Firstsource such as that signed with a large telecom player in the UK and domestically with Idea Cellular.
Macro benefits
In the UK, the highly successful iPhone, with its high-end features and value-added services, is being used as key means by players to drive realisations.
With Vodafone, a leading player there, also recently joining the race, the subscriber base is set to ramp up. With its existing presence and association with key telecom players in the UK market, Firstsource appears well set to benefit from increase in back-end work volumes.
This apart, vendor consolidation undertaken by large clients in the US and the UK has been favourable to Firstsource, giving it more business.
In its BFSI vertical, which is stabilising, there is ramp up in volumes in the key collections segment as a result of delinquencies of the US- and UK-based customers. The company has won a new client which gives it entry into the relatively safer prepaid cards segment.
The company also derives over 12 per cent of its revenues from India, a key growth market for BFSI and telecom verticals. The deal signed with Idea Cellular reiterates this point. With many new players coming into the market and looking to rollout services quickly, outsourcing of back-end work would be a strategy, resulting in opportunities that players such as Firsrsource are well-placed to tap into.
A recent IDC report states that India's domestic BPO market is set to grow at 33.3 per cent annually from $1.62 billion recorded in 2008 to revenues of $6.82 billion by 2013. This is expected to be led by BFSI, telecom, utilities, travel and hospitality segments.
Rupee appreciation against the dollar beyond the levels of Rs 45, at which the company is hedged, could pressure realisations. Although most Tier-1 IT companies have indicated that pricing pressures have abated, the situation with mid-Tier IT and BPO companies is still unclear.
via BL

Jaiprakash Power Ventures

Investors with high-risk appetite and long-term investment horizon should hold on to the Jaiprakash Power Ventures (JPVL, until recently named Jaiprakash Hydro Power) stock.
The merger of the group's power assets into the company may give it access to new capacity additions of about 1000 MW of hydro power in 15 months time, with further additions thereafter which could contribute immensely to the bottomline.
Despite the earnings dilution and high valuation premium being paid compared to peers, the increase in merchant power off-take from its capacity additions may more than compensate for the dilution beyond the next fiscal — FY-12. The benefits of the amalgamation may, however, accrue over the long term and carry challenges such as timely execution and adequate funding.
The recently renamed Jaiprakash Power Ventures has been created through the merger of the former Jaiprakash Power Ventures with Jaiprakash Hydro Power in the swap ratio of 1:3 (three shares of Jaiprakash Hydro for one of JPVL). The record date is set on January 04, 2010. As a precursor to this merger, Jaiprakash Hydro Power has already been renamed Jaiprakash Power Ventures.
The stock already appears to have factored in the near-term impact of the merger. The current market price of Rs 74.25, for Jaiprakash Power Ventures discounts its estimated FY-10 earnings by 65 times; but that works out to 16.5 times its estimated FY-12 earnings. This earnings/share also assumes dilution for the Rs 1500 crore of capital raising which is expected to be done over next few months.
Merger effects
JPVL (Jaiprakash Hyrdo) currently operates only a 300 MW run-of-the-river Baspa-II project in Himachal Pradesh . The merger of the former JPVL would mean that its total hydro generation capacity would reach 700 MW, post-merger. The merged entity would also have 12,770 MW of capacity added over the next nine years.
The merging company has a huge portfolio of power projects in the pipeline with good mix of hydro and thermal projects. High gestation period for the hydro projects under development may put pressure on the return on equity (ROE) of the company over the next few years, limiting the benefits from merchant power ROE (greater then 40 per cent).
The company will also benefit from CDM and certified emissions reductions on its hydro projects as well as due to the adoption of super-critical technologies for the thermal projects.
At the given swap ratio, the merging company's business has been valued at Rs 7.7 crore/MW (based on Mcap/MW for the projects which attained financial closure), expensive compared to the likes of NHPC and Tata Power (trading at Rs 4 crore/MW).
However, the valuation may be justified as the company may realise higher returns from merchant power sale for the company. The ROE for the merchant power will be higher and, during the initial years, this would compensate for the regulated ROEs of the long-term power purchase agreement. This would also allow the company to plough back higher profits into future projects.
As there are too many players in the power sector, we expect only the early movers in merchant power to take advantage of the power deficit scenario in the country. In this context, JPVL with a high proportion of hydro projects (which carry no fuel risks) may be able to capitalise well on the merchant power opportunity and could sell around 40 per cent of it as merchant power.
On the thermal facilities, too the company has managed to get captive coal mines for the Nigrie thermal project.
However, the other thermal projects are yet to get fuel linkages, which poses a significant risk. According to a CEA document, coal linkages of Bina TPP, which is expected to be commissioned by FY-12, is under consideration.
Funding
JPVL's earlier plans to come up with an IPO in 2008 were stalled due to weak equity market conditions. Though this merger may add scale, the funding of the power projects remains an area of concern.
The company now has plans to come up with a scaled-down Rs 1,500 crore follow-on offer or a private placement to take care of the future funding needs. As the projects are staggered over next nine years the company may not find it hard to fund equity of other projects with internal accruals.
The near-term funding for Nigrie thermal power project and Karcham Wangtoo hydro project is secured by discounting Rs 2,750 crore of future receivables and internal accruals.
The securitised receivables will be for a tenure of 14 years and may reduce the revenue base in the first two years. Once the new capacity additions kick in, the steep increase in revenue base may reduce the impact of this outgo.
Financials
The earnings of Jaiprakash Hydro were volatile in the last few years. As the company now operates only a 300 MW plant, the net revenues would depend on the output generated from the power projects and the pre-determined tariff which will moderate over the years. Over the next two years, investors in the merged entity have to budget, not only for limited earnings due to the regulated tariffs on current projects, but also for possible downside given that further securitization of revenues may put pressure on the topline.
However, beyond FY-12 with more than 1,500 MW coming up, the bottomline may see a sharp spike. By October, 2011 Karcham Wangtoo hydro project (55 per cent stake) and Bina Phase-I thermal power plants are the projects that may come on stream.
Outlook
Jaiprakash Associates' expertise in EPC and BOP contracts in hydro project would reduce the execution risk to some extent. The company, in joint-venture with Power Grid, has also forayed into transmission. The key risks that apply to hydro-projects pertaining to natural disasters are relevant here. Rivers over which the company has projects are perennial and inconsistent water flow may lead to temporary plant disruptions.
According to the new hydro policy, if the projects get delayed, the proportion of power that can be sold through the merchant route will fall.
via BL