Pan-India BWA bid at Rs12,257 crore

The pan-India bid license for broadband wireless access (BWA) spectrum touched Rs12,257 crore on Wednesday (June 09, 2010), after two weeks of auction, which translates into a revenue of Rs36,772 crore for the government from the sale of three slots.

At this bid price, the total revenue for the government from the third generation (3G) and BWA auctions will amount to Rs1.12 lakh crore. The reserve price for the BWA all-India licence was fixed at Rs1,750 crore. The government got Rs67,719 crore from the sale of 3G spectrum.
Among the individual circles, bids for Delhi and Mumbai were at Rs2,101.02 crore and Rs2,152.95 crore respectively. Tamil Nadu garnered a bid of Rs1,931.06 crore, while the Karnataka bid touched Rs1,527.98 crore. Except Delhi, Kerala, Himachal Pradesh and Mumbai, all other circles saw either negative bidding or no bidding.

Auto, telecom stocks lead 1.6% Sensex surge

A rebound in European stocks aided a rally on the domestic bourses, which extended gains for the second consecutive session. All the sectoral indices on BSE rose, with auto, metals and realty indices at the forefront of the rally. Telecom stocks also rose across the board. The BSE 30-share Sensex jumped 264.19 points or 1.59%.

The Bank of England made no monetary policy changes today, leaving its key lending rate at a record low 0.5% for the fifteenth month and maintaining a pause in its money-printing, quantitative-easing program.
Back home, the market edged higher in early trade, tracking gains in Asian shares. Stocks extended gains in morning trade. The market pared gains later. Stocks regained strength in mid-morning trade. The key benchmark indices pared gains in early afternoon trade soon after hitting fresh intraday highs. A bout of volatility was witnessed once again as the market rebounded from lower level in afternoon trade. The market surged to fresh intraday high in mid-afternoon trade as European stocks recovered. The market extended gains in late trade.
Stocks have been on a roller coaster ride recently. The Sensex had lost 500.59 points or 2.9% in two trading sessions to 16,617.10 on Tuesday, 8 June 2010 from a recent high of 17,117.69 on 4 June 2010. Earlier, the market had witnessed a strong rebound from lower level. The Sensex had risen 1,095.21 points or 6.83% in eight trading sessions to 17,117.69 on 4 June 2010, from a low of 16,022.48 on 25 May 2010.
Stocks are off recent highs. The Sensex has lost 1,047.94 points or 5.83% from a recent peak of 17,970.02 on 7 April 2010. The barometer index has lost 3.1% in calendar 2010 so far after jumping 81% in 2009.
Coming back to today's trade, NSE's volatility index India VIX, which is a gauge of traders' perception of near-term risks in the market based on options prices, declined 5.89% to 26.50. The index had lost 2.12% to 28.16 on Wednesday, 9 June 2010. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
On the macro front, the food price index rose 16.74% in the year to 29 May 2010, higher than the previous week's annual reading of 16.55% as fruits and potato prices rose, data released by the government today showed. The fuel price index climbed 14.23% compared with an annual rise of 14.14% in the previous week.
The Union Cabinet reportedly did not discuss any proposal to raise fuel prices or reform the sector at a meeting held on Thursday, 10 June 2010. On Tuesday, Finance Minister Pranab Mukherjee had said he would meet other cabinet ministers on Thursday to decide on the date for the next meeting to discuss the issue of fuel deregulation which was deferred on Monday.
The Indian government early this week deferred a decision on raising fuel prices, the second time in a year it has tripped on pushing politically-sensitive reform measures that could help trim a budget deficit. An empowered group of ministers (EGoM) was to discuss on Monday, 7 June 2010, a report by an experts' committee headed by Planing Commission member Kirit Parikh, which had recommended freeing petrol and diesel prices and a steep Rs 100 per cylinder hike in LPG rates and a Rs 6 per litre increase in kerosene prices.
Meanwhile, the Union Cabinet on Thursday deferred a decision to sell stake in state-run Coal India and miner Hindustan Copper.
European shares turned positive on Thursday morning as Novartis rose ahead of a US vote on its multiple sclerosis pill, offsetting falls in BP which slipped on concerns over costs of the oil spill. The key benchmark indices in UK, France and Germany were up by between 0.30% to 1.04%.
Interest rate decision from the European Central Bank (ECB) is awaited today, with no change expected. Investors are also watching if the ECB announces any fresh steps to help debt-stricken euro zone countries.
Asian stocks rose on Thursday on better-than-expected Chinese exports and assurances from Federal Reserve Chairman Ben Bernanke that the US economic recovery was on solid footing. The key benchmark indices in Japan, South Korea, Hong Kong, Taiwan and Singapore rose by between 0.06% to 1.56%. But, Indonesia's Jakarta Composite fell 0.63%.
China's Shanghai Composite fell 0.82% even as its exports jumped 48.5% in May 2010 from a year earlier, the biggest gain in more than six years. Stocks were weighed by concerns further tightening measures may emerge after property prices in 70 of China's large and medium-sized cities rose for a 12th consecutive month in May 2010, climbing 12.4% from a year earlier.
Meanwhile, South Korea's central bank left its key interest rate at a record low of 2% on Thursday as the country's recovery strengthens and worries persist over the health of the global economy amid Europe's debt woes.
US index futures pared gains. Trading in US index futures indicated that the Dow could gain 51 points at the opening bell on Thursday, 10 June 2010. The Dow futures had risen as much as 100 points earlier.
US stocks fell on Wednesday in another late-day roller-coaster ride, dragged lower by BP and other energy shares as the US probe of the oil spill in the Gulf of Mexico deepened. The Dow Jones industrial average dropped 40.73 points, or 0.41% to 9,899.25. The Standard & Poor's 500 Index fell 6.31 points, or 0.59% to 1,055.69. The Nasdaq Composite Index lost 11.72 points, or 0.54% to 2,158.85.
Federal Reserve Chairman Ben Bernanke said on Wednesday the US economic recovery was on a solid footing but cautioned it could be years before the jobs lost during the deep recession of 2008-2009 are restored.
The World Bank on Wednesday said a double-dip recession could not be ruled out in some countries if investors lose faith in efforts in Europe and elsewhere to tackle rising debt levels. The World Bank's Global Economic Prospects 2010 report said slower growth in developed economies would deprive developing countries of healthy markets for their goods and would cut into investment.
For the moment, worries that Greece's fiscal woes could spread to other highly-indebted countries, such as Spain and Portugal, has not affected growth in developing countries, the World Bank said. The World Bank forecast that developing economies would expand at between 5.7% and 6.2% each year from 2010 to 2012 -- more than twice the growth rate of advanced economies.
Back home, India's monsoon delivered normal rainfall in the past week, the India Meteorological Department (IMD) said today, 10 June 2010. Rainfall in the seven days to 9 June 2010 recovered to normal after an initial hiccup when cyclone Phet hindered the advance of the June-September monsoon, which irrigates 60% of farms in India.
The June-September monsoon rains hit Kerala on 31 May 2010, a day ahead of schedule. The south-west monsoon usually covers the entire country by mid-July. The weather office late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
Last month, Australia's weather bureau said the El Nino weather pattern was over. El Nino is caused by an abnormal warming of the eastern Pacific Ocean and can play havoc with weather patterns across the Asia-Pacific region.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
Data last week showed business activity remained strong for India's vast services sector in May 2010, with a key gauge growing for a 13th consecutive month even as some momentum was lost over the previous month. The HSBC-Markit Business Activity Index stood at 58.2 in May 2010 from a 21-month high of 62.1 in April 2010. A reading above 50 indicates expansion. Services make up about 55% of India's $1.2 trillion economy.
HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 Indian firms, surged to a 27-month high of 59 in May 2010 from 57.2 in April 2010, bolstered by steady growth in output, new orders and employment. The rate of growth had slowed in March 2010 and April 2010.
India's economy grew at 8.6% in the March 2010 quarter driven by robust manufacturing sector on the back of government and consumer spending, data released by the government on Monday, 31 May 2010, showed. The growth was significantly higher than the revised 6.5% expansion in Q3 December 2009 and a 5.8% growth in Q4 March 2009. The manufacturing sector grew 16.3%, farm output rose 0.7%, mining sector expanded 14% and services increased by 8.4% in January-March 2010 quarter from a year earlier. For the full year to March 2010, the economy expanded 7.4%, above a government forecast of 7.2%. Economic growth had slowed down to 6.7% in year ended March 2009.
Investors will eye the first installment of the corporate advance tax payment which will give some clue about Q1 June 2010 corporate results. The first installment of corporate advance tax falls due on 15 June.
The BSE 30-share Sensex rose 264.19 points or 1.59% to 16,922.08. The Sensex rose 284.71 points at the day's high of 16,942.60 in late trade. The Sensex rose 11.02 points at the day's low of 16,668.91 in early trade.
The S&P CNX Nifty rose 78.30 points or 1.57% to 5078.60.
The BSE Mid-Cap index rose 1.10%. The BSE Small-Cap index rose 1.26%. Both the indices underperformed the Sensex.
BSE clocked turnover of Rs 3582 crore, lower than Rs 3896.75 crore on Wednesday, 9 June 2010.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1878 shares advanced as compared with 901 that declined. A total of 135 shares were unchanged.
All sectoral indices on BSE rose. BSE Auto index (up 2.98%), Metal index (up 2.12%), Realty index (up 1.80%), Teck index (up 1.76%), Healthcare index (up 1.63%), outperformed the Sensex.
Power index (up 1.50%), Capital Goods index (up 1.43%), Consumer Durables index (up 1.11%), IT index (up 1.09%), Banking sector index Bankex (up 1.06%), FMCG index (up 0.65%), Oil & Gas index (up 0.62%) and PSU index (up 0.58%), underperformed the Sensex.
From the 30 share Sensex pack, 29 rose and just one fell.
Index heavyweight Reliance Industries (RIL) rose 0.85%, with the stock gaining for the second straight day. Reliance Industries (RIL) reportedly plans to enter the telecommunications sector when the opportunity arises. RIL is expected to go for only the lucrative corporate bandwidth market, or the business of selling telecom and internet services to companies rather than individuals. In May this year, the two Ambani brothers, Mukesh and Anil called off their non-compete agreements on all businesses other than gas-based power, enabling Mukesh Ambani to enter the telecom sphere.
Earlier reports had suggested RIL may foray into nuclear energy and may make its first big-ticket investment in coal-fired power plants after being freed from a non-compete agreement with the Anil Dhirubhai Ambani Group (ADAG) that barred it from investing in some businesses, including power.
Reliance Infrastructure rose 5% and was the top gainer from the Sensex pack. Reliance Power's wholly owned unit Reliance Coal Resources has entered into share purchase agreements to acquire the entire stake in the two coal companies in Indonesia. The two Indonesian companies own three coal-mines in Indonesia. The coal from these mines will be used in the Krishnapatnam ultra mega power project and other power projects of the group, Reliance Power said on Thursday. Reliance Infrastructure holds 44.96% stake in Reliance Power (as on 31 March 2010).
Telecom stocks rose across the board. India's largest listed mobile telecom services provider by sales Bharti Airtel rose 4.81%, extending Wednesday's 5.57% gains. The company recently announced the competition of the acquisition of Zain Group's (Zain) mobile operations in 15 countries across Africa for an enterprise valuation of $10.7 billion.
India's second largest listed mobile telecom services provider by sales Reliance Communications rose 2.47%. India's third largest listed mobile telecom services provider by sales Idea Cellular rose 3.56%
Capital goods stocks rose on expectations of continued order flows. Bharat Heavy Electricals, Usha Martin, Jyoti Structures, Crompton Greaves, Havells India, Praj Industries, SKF India and Punj Lloyd rose by 0.47% to 2.21%.
India's largest engineering and construction firm by sales Larsen & Toubro rose 1.76% after company announced during market hours today it won orders worth Rs 747 crore for metallurgical and material handling projects.
Auto stocks extended recent gains on robust vehicle sales in the month of May 2010. India's largest tractor maker by sales Mahindra & Mahindra (M&M) rose 2.55%, with the stock gaining for the second straight day. M&M's auto sales rose 69% to 28,486 units in May 2010 over May 2009.
India's largest small car maker by sales Maruti Suzuki India rose 3.33%, with the stock gaining for the second straight day. Maruti's total sales rose 27.90% to 102,175 units in May 2010 over May 2009. The company's domestic sales rose 27.2% to 90,041 units in May 2010 over May 2009. This is highest ever monthly domestic sales. Exports increased 33.5% to 12,134 units in May 2010 over May 2009. The company announced the sales figures on 1 June 2010.
India's top truck maker by sales Tata Motors rose 4.31%. The company reported 41% growth in vehicle sales in May 2010 over May 2009. The company sold 56,779 units in May 2010 as against 40,196 units sold in May 2009. The company unveiled the monthly sales data on 1 June 2010.
Car sales rose an annual 30.4% in May 2010, an industry body said on Wednesday. Domestic firms sold 1,48,481 cars in the month, compared with 1,13,810 units a year ago, data from the Society of Indian Automobile Manufacturers (Siam) showed. Sales of trucks and buses, a barometer of economic activity, rose 58% to 48,580 units in May 2010, Siam said.
India's largest bike maker by sales Hero Honda Motors rose 4.14%. The company recently raised prices of its products by up to Rs 1,000 due to rising input costs.
High beta realty stocks rose on bargain hunting. Sobha Developers, Indiabulls Real Estate, Peninsula Land, Unitech, DLF, Orbit Corporation, Housing Development & Infrastructure (HDIL), Ackruti City and D B Realty rose by 0.68% to 3.56%
Banking stocks rose on pick up in credit offtake. India's second largest private sector bank by sales HDFC Bank rose 1.71%, with the stock gaining for the second straight day. The stock today turned ex-dividend for a dividend of Rs 12 per share.
India's largest bank in terms of branch network State Bank of India rose 2.38%. SBI is likely to launch a Rs 20000-crore rights issue in the second half of 2010/11, Chairman O.P. Bhatt said on Wednesday. Among other PSU stocks, Bank of India, Bank of Baroda and Punjab National Bank rose by between 0.25% to 0.68%.
India's largest private sector bank by sales ICICI Bank rose 0.28%, reversing initial losses. The stock today turned ex-dividend for a dividend of Rs 12 per share.
Bank credit to businesses and individuals has seen a pick-up of around Rs 5,600 crore while deposits with banks have fallen by nearly Rs 5,000 crore during the fortnight ended 21 May 2010.
Metal and mining stocks rose as LMEX, a gauge of six metals traded on the London Metal Exchange rose 2.38% on Wednesday, 9 June 2010. Steel Authority of India, Hindustan Zinc, JSW Steel, Jindal Steel & Power, Jindal Saw, Sterlite Industries, Sesa Goa and NMDC rose by 0.41% to 2.89%.
India's largest steel maker by sales Tata Steel rose 1.85%, with the stock gaining for the second straight day. A subsidiary of Tata Steel recently raised stake in Canadian mining firm New Millennium Capital Corp (NML) to 27.4%.
Hindalco Industries rose 4.14%, with the stock gaining for the second straight day on reports the company plans to borrow about Rs 14000 crore in the next couple of years to build two new plants that will treble its aluminium making capacity.
Hindustan Copper declined 0.56% on reports the Union Cabinet has deferred a decision on 20% stake sale in the state-run miner.
JSW Energy gained 2.35%, after the company entered into a memorandum of understanding to acquire 70% stake in Indian Ocean Mining, South Africa.
Assam Company slumped 5.33% after 0.18% of the company's equity changed hands in a two bulk deals on BSE.
Dish TV India shot up 5.35% after the company scheduled a board meeting on 11 June 2010 to consider a proposal for internal business restructuring between the company and its wholly owned subsidiaries.
State Bank of India clocked a highest turnover of Rs 179.09 crore on BSE. Tata Steel (Rs 117.49 crore), ARSS Infrastructure Projects (Rs 114.38 crore), Tata Motors (Rs 93.55 crore) and Sesa Goa (Rs 90.54 crore), were the other turnover toppers on BSE.
Cals Refineries reported a highest volume of 1.40 crore shares. Karuturi Global (1.04 crore shares), IFCI (94.25 lakh shares), Pipavav Shipyard (76.18 lakh shares) and Unitech (67.72 lakh), were the other volume toppers on BSE.

NSE Bulk Deals to Watch - June 10 2010

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
10-JUN-2010,ARSSINFRA,ARSS Infra Proj. Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,94015,1203.67,-
10-JUN-2010,AUSTRAL,Austral Coke & Projects L,SAAKSHI SHARES PVT.LTD.,BUY,3019678,7.37,-
10-JUN-2010,GLORY,Glory Polyfilms Limited,HANSABEN HASMUKHBHAI AMIN,BUY,399024,16.21,-
10-JUN-2010,INSECTICID,Insecticides (India) Limi,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,121275,182.16,-

10-JUN-2010,INSECTICID,Insecticides (India) Limi,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,70287,177.70,-
10-JUN-2010,TATAMETALI,Tata Metaliks Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,196531,144.40,-
10-JUN-2010,TATAMETALI,Tata Metaliks Ltd,JMP SECURITIES PVT LTD,BUY,419357,150.79,-
10-JUN-2010,TATAMETALI,Tata Metaliks Ltd,OM INVESTMENTS,BUY,221817,143.86,-
10-JUN-2010,ARSSINFRA,ARSS Infra Proj. Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,94015,1204.01,-
10-JUN-2010,AUSTRAL,Austral Coke & Projects L,SAAKSHI SHARES PVT.LTD.,SELL,3014562,7.41,-
10-JUN-2010,GLORY,Glory Polyfilms Limited,HANSABEN HASMUKHBHAI AMIN,SELL,362876,15.81,-
10-JUN-2010,INSECTICID,Insecticides (India) Limi,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,121275,182.34,-
10-JUN-2010,TATAMETALI,Tata Metaliks Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,196972,144.43,-
10-JUN-2010,TATAMETALI,Tata Metaliks Ltd,JMP SECURITIES PVT LTD,SELL,216851,150.66,-
10-JUN-2010,TATAMETALI,Tata Metaliks Ltd,OM INVESTMENTS,SELL,221820,143.99,-

BSE Bulk Deals to Watch - June 10 2010

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
10/6/2010 532975 Aishwarya Tele APARNA NARAYAN S 115000 28.25
10/6/2010 532166 Alka Securities KAUSHIK S SHAH S 569461 4.09
10/6/2010 531179 Arman Fin Serv KIRITKUMAR VRAJRATAN PARIKH S 30000 27.95
10/6/2010 533163 Arss Infra Proj SMART EQUITY BROKERS PRIVATE LIMITED B 77695 1194.93

10/6/2010 533163 Arss Infra Proj OPG SECURITIES P LTD B 141164 1187.35
10/6/2010 533163 Arss Infra Proj SMART EQUITY BROKERS PRIVATE LIMITED S 77695 1195.58
10/6/2010 533163 Arss Infra Proj OPG SECURITIES P LTD S 141164 1187.80
10/6/2010 512247 Ashirwad Cap SWASTI VINAYAKA INVESTECH LIMITED S 200000 2.70
10/6/2010 531591 Bampsl Sec BHAGWAN SAHAI KHANDELWAL S 502946 1.34
10/6/2010 511607 Birla Shloka APURVA COMMODITIES PRIVATE LIMITED B 76000 72.13
10/6/2010 511607 Birla Shloka NIDHI JALAN S 76000 72.09
10/6/2010 531337 Channel Guide AMISH DINESH SHAH B 30000 16.43
10/6/2010 533026 Chemcel Bio ACME FURNITURE PRIVATE LIMITED B 210000 8.58
10/6/2010 533026 Chemcel Bio SUNIL BHANDARI S 287325 8.96
10/6/2010 530495 Chhattisgarh Inds SUNIL GARG S 79955 9.19
10/6/2010 530495 Chhattisgarh Inds ASIAN CAPITAL MARKET LIMITED S 115021 9.10
10/6/2010 531739 Gennex Lab BASICS SOFTSOLUTIONS PRIVATE LIMITED B 1311000 1.70
10/6/2010 531739 Gennex Lab HARVINDER KAUR KAPOOR S 1311000 1.70
10/6/2010 505250 GG Dandekar TIRATH PRADYUMAN PARIKH B 29401 97.98
10/6/2010 505250 GG Dandekar KASAMBHAI U SHEKH B 66710 98.40
10/6/2010 505250 GG Dandekar TIRATH PRADYUMAN PARIKH S 33401 97.14
10/6/2010 505250 GG Dandekar KASAMBHAI U SHEKH S 66710 98.51
10/6/2010 523840 Innovative Tech RAJ FINVEST B 40378 13.24
10/6/2010 523840 Innovative Tech CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 39551 13.71
10/6/2010 523840 Innovative Tech RAJ FINVEST S 40378 13.06
10/6/2010 523840 Innovative Tech KANAKA DURGA KETINENI S 61731 13.57
10/6/2010 532851 Insecticides India SMART EQUITY BROKERS PRIVATE LIMITED B 80019 182.49
10/6/2010 532851 Insecticides India CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 121303 182.10
10/6/2010 532851 Insecticides India OPG SECURITIES P LTD B 66889 183.20
10/6/2010 532851 Insecticides India SMART EQUITY BROKERS PRIVATE LIMITED S 80019 182.45
10/6/2010 532851 Insecticides India CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 121303 182.15
10/6/2010 532851 Insecticides India OPG SECURITIES P LTD S 66889 183.22
10/6/2010 514312 Jaihind Syn PRASHAM DINISHBHAI DOSHI B 32292 11.68
10/6/2010 514312 Jaihind Syn DEENA RASIK AJMERA S 33901 11.25
10/6/2010 530255 KAY Power PRAKASHCHAND GUPTA B 61250 15.37
10/6/2010 511760 Kosian Inds DHEERAJ KUMAR LOHIA B 20547 5.61
10/6/2010 511760 Kosian Inds VENILAXMI INVESTMENT PRIVATE LIMITED S 21200 5.61
10/6/2010 500267 Majestic Auto SURBHI INVESTMENTS & TRADING COMPANY PRIVATE LTD B 120480 105.88
10/6/2010 502250 Marathwada Refrac ESHA KEDIA B 19800 446.51
10/6/2010 502250 Marathwada Refrac ABHA DALMIA S 21000 446.73
10/6/2010 590111 MASTER MEDEPUDI NAGENDRA BABU B 38150 31.67
10/6/2010 590111 MASTER RAMA VENKAT BALA ATMURI S 29289 31.70
10/6/2010 590060 MK Exim DATTA CHANDRAVADAN PARIKH S 24000 54.32
10/6/2010 532986 Niraj Cement SUNDEEP AMRUTLAL SHAH B 53700 50.28
10/6/2010 531496 Omkar Overseas JYOTIBEN OMPRAKASH PUNJABI B 26010 83.71
10/6/2010 531496 Omkar Overseas KARAN DIPAKBHAI SHAH S 26000 83.18
10/6/2010 514324 Omnitex Inds CHARLIE FINANCE PVT LTD B 80000 7.40
10/6/2010 514324 Omnitex Inds PIRAMAL SONS PVT LTD S 80000 7.40
10/6/2010 512097 Oregon Comm VIPUL VIRENDRAKUMAR PATEL B 5000 356.60
10/6/2010 512097 Oregon Comm RAKESH RASIKLAL KHARSANI B 5000 356.58
10/6/2010 512097 Oregon Comm NILESH SURESHBHAI SHAH B 10000 356.65
10/6/2010 512097 Oregon Comm SANJAY JETHALAL SONI B 5000 356.65
10/6/2010 512097 Oregon Comm NILESH RASIKLAL PANDYA B 20000 356.58
10/6/2010 531467 Polypro Fibrils AJAY RAVINDRA SHAH B 27365 30.70
10/6/2010 590077 Ranklin Sol SESHA GIRIRAO GUMMADI B 26400 86.86
10/6/2010 590077 Ranklin Sol GOPALA KRISHNA BONAM B 35200 86.83
10/6/2010 590077 Ranklin Sol RAMA VENKAT BALA ATMURI S 41703 86.76
10/6/2010 512359 Rotam Comm KRUPA SANJAY SONI B 5300 89.95
10/6/2010 512359 Rotam Comm RASIKLAL BHAGWANJI PANDYA S 6400 90.00
10/6/2010 526843 Seax Global YOGESH JESHINGBHAI SHAH S 93658 42.85
10/6/2010 526510 Shakti Metdor GLOBE CAPITAL MARKET LIMITED B 17150 204.75
10/6/2010 526510 Shakti Metdor ANIL KUMAR GOEL S 20700 204.75
10/6/2010 526133 Supertex Inds FALGUNIBEN MAHAVIRBHAI GOHIL B 1000000 2.24
10/6/2010 526133 Supertex Inds PARAMESHWAR EXPORTS PRIVATE LIMITED S 931127 2.24
10/6/2010 526133 Supertex Inds AMRIT LAXMICHAND GANDHI S 1068873 2.24
10/6/2010 526133 Supertex Inds RONAK ASHWIN CHOKSI S 1196513 2.24
10/6/2010 513434 Tata Metaliks SMART EQUITY BROKERS PRIVATE LIMITED B 138221 143.15
10/6/2010 513434 Tata Metaliks CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 195864 144.22
10/6/2010 513434 Tata Metaliks OPG SECURITIES P LTD B 414476 143.69
10/6/2010 513434 Tata Metaliks JMP SECURITIES PVT LTD B 233872 149.78
10/6/2010 513434 Tata Metaliks SMART EQUITY BROKERS PRIVATE LIMITED S 138221 143.16
10/6/2010 513434 Tata Metaliks CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 196137 144.47
10/6/2010 513434 Tata Metaliks OPG SECURITIES P LTD S 414776 143.76
* B - Buy, S - Sell

Sensex marches towards 17K

Today's major news
Larsen & Toubro bags Rs747-crore orders; the stock ends 1.76% higher
Food inflation rises to 16.74%
JSW Energy enters MoU with Osho, IOM; the stock closes 2.35% higher

Global signals
European stocks edge higher on Thursday ahead of interest rate decisions by the European Central Bank and Bank of England. As of writing this report, FTSE 100 was trading at 0.24% higher.
All the major Asian indices closed in the positive territory except Shanghai Composite and Jakarta Composite. SGX Nifty closed 79 points higher.
The US stock index futures signal higher opening on the Wall Street on Thursday. Investors will watch the latest weekly initial jobless claims numbers and April international trade data, while May's US Federal Budget will also be announced later through the day.
Indian indices
Domestic bourses extended their gains on the second consecutive day. As noticed in the past few trading sessions, the market pared its gains in late afternoon. But the case was different today as the indices managed to hold its early gains to close the session on a strong note. Positive Asian markets coupled with robust buying in auto, metal and realty sectors powered the key benchmark indices to surge over 1.5%, brushing aside the rising inflation (food inflation rose to 16.74% for week ended May 29, 2010 from 16.55% previous week) worries.
The bellwether Sensex started the session on a positive note, 11 points up at 16669. The indices gathered momentum as the session progressed. The market spent time in consolidation mode throughout the morning session. It remained firm in afternoon session despite of negative opening in the European markets and rise in food inflation. However, the Sensex rallied further in late afternoon, with no hiccups as the European indices turned positive. At closing bell, the Sensex quoted at 16922, higher by 264 points and the Nifty signed off with gains of 78 points at 5079.
Market sentiment
The market breadth was highly constructive as advancing shares outdid the declining stocks twice. Of the 2,914 stocks traded on the BSE, 1,877 stocks advanced, whereas 902 stocks declined. Hundred and thirty five stocks traded unchanged.
Sectoral & stock screening
With the bulls charging ahead all through the day, it was all green on the sector indices front. The BSE Auto topped the chart with gains of 2.98%, followed by the BSE Metal that gained 2.12% and the BSE Realty that surged 1.80%.
In ‘A’ group stocks, Pantaloon Retail surged the most by 6.90%, followed by Sun TV Network that rose 5.78% and Reliance Infrastructure that jumped 5%. On the losers’ list, Bajaj Holdings lost the most by 2.52%, followed by Apollo Hospital Enterprises that slid 1.64% and Petronet LNG that fell 1.51%.
Viewing volumes
Industrial finance company - IFCI saw highest trading with over 0.94 crore shares changing hands on the BSE, India’s second largest developer - Unitech (0.67 crore shares), wind turbine major - Suzlon Energy (0.59 crore shares), aluminum major - Hindalco Industries (0.45 crore shares) and India's second largest listed cellular services provider by sales - Reliance Communications (0.30 crore share).

Markets up, autos and metals lead the show

Indian equities continued to rally for the second day on Thursday. The Sensex wrapped the day on a buoyant note on the back of strong European market. All sectoral indices were in green. Auto and metal stocks rallied followed by realty, teck, healthcare and power. Moreover, Japan`s GDP rose at an annualized 5% rate in the three months ended March 31 faster than the 4.9% reported last month. Further positively trading US index futures aided our markets to remain in green.

It opened flat at 16,668.91 on mixed Asian shares. The Sensex traded in a range for sometime and later gained strength as buying intensified across board due to good European cues to finally close on a pleasant note after touching a high of 16,942.60.
Meanwhile, Food Inflation rose marginally to 16.74% for the week ended May 29 on high prices of pulses, milk and fruits. Inflation increased by 0.19 percentage point from 16.55% in the previous week.
European market opened flat with negative bias, but later on gained strength. UK`s FTSE 100 moved up 13.35 points, or 0.26%, to trade at 5,099.21. France`s CAC 40 gained 36.82 points or 1.07% to trade at 3,483.59. Germay`s DAX edged higher by 34.92 points or 0.58% to trade at 6019.67. (4.15 p.m., IST)
Most Asian stocks rose, led by energy producers, and Standard & Poor`s 500 index futures gained after economic reports from the U.S. to Japan to Australia showed accelerating growth.
At the close, the benchmark 30-share index, BSE Sensex added 264.19 points or 1.59% at 16,922.08. Meanwhile, the broad based NSE Nifty climbed by 78.30 points or 1.57% at 5,078.60.
Sensex Movers
Bharti Airtel contributed rise of 22.16 points in the Sensex. It was followed by Larsen & Toubro (20.2 points), State Bank Of India (20.14 points), Reliance Industries (20.08 points) and H D F C Bank (15.21 points).
However, Oil & Natural Gas Corporation contributed fall of 1.9 points in the Sensex. It was followed by Grasim Industries (0.67 points), Sun Pharmaceutical Industries (1.17 points), ACC (1.55 points) and NTPC (1.71 points).
Biggest gainers in the 30-share index were Reliance Infrastructure (5.00%), Bharti Airtel (4.81%), Tata Motors (4.31%), Hero Honda Motors (4.14%), Hindalco Industries (4.14%), and Cipla (3.36%).
On the other hand, and Oil & Natural Gas Corporation (0.29%) were the biggest losers in the Sensex.
Mid & Small-cap Space
The Midcap and Smallcap index rose 1.10% and 1.26% respectively.
Sectors in Limelight
The Auto index was at 7,940.31, up by 230.08 points or by 2.98%. The major gainers were Bharat Forge (3.64%), Bajaj Auto (2.28%), Ashok Leyland (2.19%), Amtek Auto (1.02%) and Exide Industries (0.74%).
The Metal index was at 14,400.09, up by 298.26 points or by 2.12%. The major gainers were Hindalco Industries (4.14%), Hindustan Zinc (2.36%), JSW Steel (2.29%), Jindal Steel & Power (2.05%) and National Aluminium Company (0.02%).
The Realty index was at 2,983.41, up by 52.89 points or by 1.80%. The major gainers were Indiabulls Real Estate (3.42%), D L F (1.78%), Housing Development and Infrastructure (0.75%), Ackruti City (0.7%) and D B Realty (0.68%).
The TECk index was at 3,193.56, up by 55.37 points or by 1.76%. The major gainers were Dish TV India (5.35%), Bharti Airtel (4.81%), Idea Cellular (3.56%), Reliance MediaWorks (2.37%) and Mphasis (0.16%).
Market Breadth
Market breadth was positive with 1,909 advances against 941 declines.
Value and Volume Toppers
State Bank Of India topped the value chart on the BSE with a turnover of Rs. 1,798.43 million. It was followed by Tata Steel (Rs. 1,188.56 million), ARSS Infrastructure Projects (Rs. 1,168.91 million) and Tata Motors (Rs. 952.73 million).
The volume chart was led by I F C I with trades of over 9.43 million shares. It was followed by Pipavav Shipyard (7.62 million), Hindalco Industries (4.55 million) and Shree Ashtavinayak Cine Vision (4.44 million).

Asian stocks rise amid upbeat data

Bearing China, most of the regional benchmarks add decent gains
The Asian stocks recorded decent gains today as strong economic data along with a modest retreat in the US dollar pepped up the sentiments. Positive trade data from China supported the sentiments, notwithstanding the weak closing in Wall Street in the overnight trades. The commodity prices were mostly higher. Markets also eyed an impressive undertone in the Dow futures, which gained more than 100 points in the electronic session, indicating that the US markets might record some smart gains at the open today. However, the dollar rose in the late trades as the central banking action in Europe drew closer.

The Japanese stocks surged on better-than-expected GDP data for the first quarter. The country's Cabinet Office announced that the gross domestic product expanded by an annualized 5.0% in the first quarter of 2010. That was better than last month's preliminary reading for a 4.90% gain. On quarter as well, GDP was unrevised at 1.2% higher, shrugging off forecasts for a 1.0% increase. This, clubbed with a slight weakening in Japanese Yen made the benchmark Nikkei 225 Index advanced 103.52 points, or 1.10%, to 9,543, while the broader Topix index of all First Section issues was up 6.42 points, or 0.75%, to 857.
Further on the economic front, the Cabinet Office revealed that consumer sentiment in the country improved for the fifth consecutive month in May. The consumer confidence index rose to 42.7 from 42.1 in April. Households' consumer confidence also improved in May to 42.8 from 42 in April. Economists had expected the index to remain unchanged at 42. The survey was carried out on May 15 among 6,720 households. Within the households' sentiment index, the gauge for overall livelihood rose to 43 from 42.4. Income growth stood at 41.1, up from 40.4 in April.
The Australian market also jumped in tune with the overall rise in risk appetite and positive Chinese trade data, which augured well for commodities. The benchmark S&P/ASX200 Index rose 50.00 points, or 1.14% and closed at 4,435, while the All-Ordinaries Index ended at 4,448, representing a gain of 45.80 points, or 1.04%.
On the economic front, a report released by the Australian Bureau of Statistics revealed that unemployment rate in the country unexpectedly declined in May to a seasonally adjusted 5.2% from 5.4% reported for the previous month. A year ago, the unemployment rate stood at 5.8%. As per the report, the unemployment rate among males fell to 5% from 5.3%, while that among females slid to 5.3% from 5.5%. Some 600,900 Australians were unemployed by the end of May, a decrease of 25,400 from April.
In China, stocks fell though, not being able to surpass the 2600-mark for the benchmark index as banking and property shares skidded lower on concerns about tightening measures from the country's central bank. The Shanghai Composite Index dropped 21.29 points or 0.82 %, to close at 2,562.58 points. The Shenzhen Component Index fell 124.05 points, or 1.2 %, to end at 10,222.22.
China's exports surged by 48.5 % year on year in May, while the imports climbed 48.3 %, the General Administration of Customs (GAC) announced today. The growth rate for exports was 18.1% points up from the figure for April, and the import growth rate dipped slightly from 49.7 % reported in April.
Experts said the strong growth of exports eased concerns that the European sovereign debt crisis would dent China's economic growth.
Total foreign trade value rose 48.4 % from a year earlier to 243.99 billion U.S. dollars in May. The figure was 10.2 % higher than May 2008 before the global financial crisis began, the statement said.
Further, home prices in 70 large and medium-sized Chinese cities rose by 12.4 % year on year in May, the National Bureau of Statistics (NBS) said in a statement Thursday. The growth rate was 0.4 %age points lower than that of April, as property sales in first-tier cities, including, Beijing, Shanghai and Shenzhen, contracted following a string of government measures to rein in price rises. However, the present levels are still worrisome and some more measures to tame them look on cards in the near term.
In Mumbai, the key benchmark indices extended gains for the second straight day as global markets rose. All the sectoral indices on BSE were in green and good buying was visible in auto, metal, realty and capital goods stocks. As per provisional figures, the BSE 30-share Sensex was up 276.12 points or 1.66% to 16,934.01. The S&P CNX Nifty was up 82.05 points or 1.64% to 5,082.35 as per provisional figures.
In other markets, Hang Seng rose 0.06% while Straits Times surged 1.23% and TSEC added1.56%.
The dollar slipped against the Euro to trade near 1.2100 at one stage but quickly reversed the losses ahead of the interest rate decisions at ECB and BOE. Crude oil continued to ride higher though, breaking above $75 per barrel. Gold slipped as equities went up initially but found a very a good support at $1220 per ounce and moved up.

Nifty June 2010 futures at premium

Turnover declines
Nifty June 2010 futures were at 5,090, at a premium of 11.40 points compared to the spot closing of 5078.60. Turnover in NSE's futures & options (F&O) segment was Rs 87,922.32, lower than Rs 93,058.52 crore on Wednesday, 9 June 2010.
Hindalco Industries June 2010 futures were at a slight premium at 139.60 compared to the spot closing of 139.
Tata Steel June 2010 futures were at a slight premium at 473.50 compared to the spot closing of 472.95.
State Bank of India June 2010 futures were at discount at 2323 compared to the spot closing of 2329.60.
In the cash market, the S&P CNX Nifty rose 78.30 points or 1.57% at 5,078.60.

Stocks shifted to T2T

AFL Accel Frontline Limited
BEPL Bhansali Engineering Polymers Limited
BHARATRAS Bharat Rasayan Limited
CINEVISTA Cinevistaas Limited
DCMFINSERV DCM Financial Services Limited
FOURSOFT Four Soft Limited
PDUMJEPULP Pudumjee Pulp & Paper Mills Limited
SABTN Sri Adhikari Brothers Television Network Limited
SAKSOFT Saksoft Limited
TCPLTD TCP Limited
WHIRLPOOL Whirlpool of India Limited

Market will remain volatile - what to watch out for ?

The market may edge higher in early trade tracking gains in Asian stocks. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicated a flat opening on the domestic bourses.
In stock specific action, Hindalco Industries reportedly plans to borrow about Rs 14000 crore in the next couple of years to build two new plants that will treble its aluminium making capacity as increased production of cars and aircraft, fuel demand for the white metal.
To read the full article - click on the read more link below

In global markets, Asian stock markets edged higher in volatile trade on Wednesday, tracking overnight gains on Wall Street. The key benchmark indices in China, South Korea, Indonesia, Hong Kong, Taiwan and Singapore rose by between 0.02% to 0.52%. But, Japan's Nikkei Average fell 0.98%.
US Stocks mostly rose in volatile trading on Tuesday 8 June 2010 led by materials and financial shares, but investors shied away from big-cap technology shares on concerns about their European exposure. The Dow Jones Industrial Average gained 123.49 points, or 1.26% to 9,939.98. The Standard & Poor's 500 Index rose 11.53 points, or 1.10% to 1,062.00. But, the Nasdaq Composite Index dropped 3.33 points, or 0.15% to 2,170.57.
Federal Reserve Chairman Ben Bernanke said the US economy seemed to have enough momentum to avoid a double-dip recession, giving support to domestic-oriented companies.
Back home, the Indian government on Monday deferred a decision on raising fuel prices, the second time in a year it has tripped on pushing politically-sensitive reform measures that could help trim a budget deficit. The Congress-led government held off the decision after two powerful ministers from coalition parties stayed away from a ministerial panel meeting, signalling opposition to the move on fears of voter backlash ahead of local polls over the next year.
The panel was to review the possibility of freeing up petrol prices and cutting subsidies on diesel, kerosene and cooking gas which could help reduce the fiscal deficit from the projected 5.5% of 2010/11 GDP and free up revenues for other programmes.
On the monsoon front, the southwest monsoon rains have revived after being stalled by a cyclone last week. According to the India Meteorological Department (IMD), the monsoon has advanced to some parts of the central Arabian Sea, most parts of coastal Karnataka and some parts of south interior Karnataka. It said conditions are favourable for further advance of southwest monsoon over some parts of Konkan & Goa and Madhya Maharashtra and some more parts of Karnataka and Andhra Pradesh during next 2-3 days.
The monsoon rains were 11% below normal in the week to 2 June 2010, the weather office said on Thursday, 3 June 2010. The June-September monsoon rains hit Kerala on 31 May 2010, a day ahead of schedule. The south-west monsoon usually covers the entire country by mid-July. The weather office late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
Last month, Australia's weather bureau said the El Nino weather pattern was over. El Nino is caused by an abnormal warming of the eastern Pacific Ocean and can play havoc with weather patterns across the Asia-Pacific region.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
Data last week showed business activity remained strong for India's vast services sector in May 2010, with a key gauge growing for a 13th consecutive month even as some momentum was lost over the previous month. The HSBC-Markit Business Activity Index stood at 58.2 in May 2010 from a 21-month high of 62.1 in April 2010. A reading above 50 indicates expansion. Services make up about 55% of India's $1.2 trillion economy.
HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 Indian firms, surged to a 27-month high of 59 in May 2010 from 57.2 in April 2010, bolstered by steady growth in output, new orders and employment. The rate of growth had slowed in March 2010 and April 2010.
On a flip side, another data showed that the food articles index rose 16.55% in the year to 22 May 2010, accelerating from previous week's rise of 16.23%. The primary articles index, which also includes food articles, rose 16.89%, higher than previous week's 15.90% rise. The fuel price index increased to 14.14 % versus 12.08% rise in the previous week.
India's economy grew at 8.6% in the March 2010 quarter driven by robust manufacturing sector on the back of government and consumer spending, data released by the government on Monday, 31 May 2010, showed. The growth was significantly higher than the revised 6.5% expansion in Q3 December 2009 and a 5.8% growth in Q4 March 2009. The manufacturing sector grew 16.3%, farm output rose 0.7%, mining sector expanded 14% and services increased by 8.4% in January-March 2010 quarter from a year earlier.
For the full year to March 2010, the economy expanded 7.4%, above a government forecast of 7.2%. Economic growth had slowed down to 6.7% in year ended March 2009.
Investors will eye the first installment of the corporate advance tax payment which will give some clue about Q1 June 2010 corporate results. The first installment of corporate advance tax falls due on 15 June. The combined net profit of a total of 3,610 companies rose 13.7% to Rs 87,214 crore on 24.70% rise in sales to Rs 9,27,583 crore in the quarter ended March 2010 over the quarter ended March 2009.
The key benchmark indices declined for the second straight day on Tuesday, 8 June 2010 as European shares faltered. The BSE 30-share Sensex fell 163.97 points or 0.98% to 16,617.10on Tuesday.
As per provisional figures on NSE, foreign funds sold shares worth Rs 242.91 crore and domestic funds bought shares worth Rs 41.09 crore on Tuesday.
Euro zone debt worries caused massive outflow of foreign funds from India recently as investors shunned risk. Foreign funds sold shares worth a net Rs 832.21 crore in the first six trading sessions this month, as per data from the stock exchanges. Foreign institutional investors (FIIs) had dumped shares worth a net Rs 12071.14 crore in May 2010.
Domestic funds have absorbed part of the selling by FIIs. Domestic funds bought stocks worth a net Rs 166.75 crore in the first six days this month. Domestic funds bought stocks worth a net Rs 6361.17 crore in May 2010.

BSE Bulk Deals to Watch - June 8 2010

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
8/6/2010 517356 ACI Infocom ALLWELL INVESTMENTS PVT LTD S 60000 22.23
8/6/2010 532975 Aishwarya Tele RAMYA PENDRU B 150000 29.06
8/6/2010 512247 Ashirwad Cap SWASTI VINAYAKA INVESTECH LIMITED S 200000 2.50
8/6/2010 531591 Bampsl Sec PRAKASHCHAND GUPTA B 416500 1.38
8/6/2010 511607 Birla Shloka PARAM COMMODITIES PRIVATE LIMITED B 96500 72.83

8/6/2010 511607 Birla Shloka BELA JALAN S 96500 72.83
8/6/2010 533026 Chemcel Bio ASHU AGRAWAL B 140000 7.99
8/6/2010 533026 Chemcel Bio REKHA BHANDARI S 141631 7.99
8/6/2010 530495 Chhattisgarh Inds SUNIL KUMAR AGARWAL B 50000 7.72
8/6/2010 530495 Chhattisgarh Inds SANGITA AGARWAL B 50000 7.72
8/6/2010 530495 Chhattisgarh Inds ROHIT AGARWAL B 50000 7.71
8/6/2010 530495 Chhattisgarh Inds RAMA AGARWAL B 50000 7.71
8/6/2010 530495 Chhattisgarh Inds PAWAN KUMAR AGARWAL HUF B 50000 7.71
8/6/2010 530495 Chhattisgarh Inds PAWANKUMAR AGARWAL B 50000 7.71
8/6/2010 530495 Chhattisgarh Inds NEHA AGARWAL B 50000 7.71
8/6/2010 530495 Chhattisgarh Inds GAYATRI AGARWAL B 50000 7.71
8/6/2010 530495 Chhattisgarh Inds ANIL KUMAR AGARWAL HUF B 50000 7.71
8/6/2010 530495 Chhattisgarh Inds ANILKUMAR AGARWAL B 50000 7.64
8/6/2010 530495 Chhattisgarh Inds ASIAN CAPITAL MARKET LIMITED S 126679 7.72
8/6/2010 530495 Chhattisgarh Inds GREENOL LABORATORIES PRIVATE LIMITED S 353130 7.71
8/6/2010 526546 Choksi Lab SUNIL BHANDARI B 63000 19.41
8/6/2010 526546 Choksi Lab SNEH GANGWAL B 24500 19.50
8/6/2010 526546 Choksi Lab REKHA BHANDARI S 100000 19.42
8/6/2010 531270 Dazzel Conf KAMLA BHANDARI B 130000 21.70
8/6/2010 530237 Gandhinagar Hot PRASHANT MAHADEV KAMBLE S 33485 117.60
8/6/2010 531601 Gujarat Capital SWAGATAM MARKETING PRIVATE LIMITED B 100000 70.83
8/6/2010 531601 Gujarat Capital SIDHANT FINANCIAL SERVICES PVT LTD B 100000 70.06
8/6/2010 524494 IPCA Lab NEW WORLD FUND, INC S 1052635 275.28
8/6/2010 514312 Jaihind Syn RAJESH DINESH SHAH S 24500 11.20
8/6/2010 531363 Karur KCP HITESH SHASHIKANT JHAVERI B 118457 64.87
8/6/2010 531363 Karur KCP DYNAMIC STOCK BROKING INDIA PVT LTD B 52740 63.12
8/6/2010 531363 Karur KCP DYNAMIC STOCK BROKING INDIA PVT LTD S 52929 63.33
8/6/2010 531363 Karur KCP SAR AUTO PRODUCTS LIMITED S 55580 56.03
8/6/2010 531363 Karur KCP HITESH SHASHIKANT JHAVERI S 112615 64.94
8/6/2010 590111 MASTER MALLIKHARJUNARAO V B 78657 31.17
8/6/2010 590111 MASTER SREE LAKSHMI MIKKILINENI S 40000 31.13
8/6/2010 590060 MK Exim LALIT J KACHHADIA B 20200 55.00
8/6/2010 590060 MK Exim BHARTIPARAG SHETH S 20000 55.00
8/6/2010 523160 Morganite Cruc KAMAL KUMAR DUGAR AND CO B 21627 253.83
8/6/2010 531496 Omkar Overseas PANKAJ B KOTECHA HUF B 58000 84.25
8/6/2010 512626 Orbit Exports IMMORTAL FINANCIAL SERV P LTD S 55355 33.46
8/6/2010 512097 Oregon Comm PATEL VIPUL B 5000 352.60
8/6/2010 531157 Organic Coat SONAL SHIVRAMANGNE B 50000 23.55
8/6/2010 531157 Organic Coat BHAGYASHREE SHIVRAMANGNE B 50000 23.55
8/6/2010 531157 Organic Coat DHAVAL JANARDAN NANAVATI S 100000 23.55
8/6/2010 530331 Premco Glob HEMANT RAJENDRABHAI SHAH B 17000 23.30
8/6/2010 530331 Premco Glob JITENDRA RAMESHCHANDRA SONI S 17000 23.30
8/6/2010 511016 Premier Cap OMPRAKASH KHANDELWAL B 5500 71.00
8/6/2010 511016 Premier Cap SHASHI BHUSHAN KHANDEWAL B 5500 71.00
8/6/2010 511016 Premier Cap SNEHLATA KHANDELWAL B 5500 71.00
8/6/2010 511016 Premier Cap SWETA KHANDELWAL B 5550 71.00
8/6/2010 511016 Premier Cap YUKTI INVESTMENT PRIVATE LIMITED S 22000 71.00
8/6/2010 507490 Rana Sugars EDELWEISS ESTATES P LTD B 1426358 12.05
8/6/2010 507490 Rana Sugars EDELWEISS ESTATES P LTD S 888358 12.16
8/6/2010 590077 Ranklin Sol SREE LAKSHMI MIKKILINENI B 28503 87.75
8/6/2010 526753 Roselabs Inds SPLENDOR VANIJYA PRIVATE LIMITED B 100000 71.98
8/6/2010 512359 Rotam Comm NAGAVENI K B 8000 92.50
8/6/2010 519566 Simran Farms PORINJUV VELIYATH B 33000 30.00
8/6/2010 519566 Simran Farms LITTY THOMAS S 33000 30.00
8/6/2010 531645 Southern Ispat SANJEEV VINOD SHAH S 66541 14.45
8/6/2010 531373 Suave Hotels JYOTI FOODSTUFF LIMITED S 90500 31.86
8/6/2010 531249 Well Pack Papers AMAR PREMCHAND WALMIKI B 437000 43.51
* B - Buy, S - Sell

Nifty below 5K on Euro zone worries

Today's major news
Bharti closes Zain deal; the stock closes 3.77% lower
Punj Lloyd bags Rs179.90-crore order; the stock ends 0.60% down
JSW Steel May crude steel production up 23%; the stock closes 1.88% lower

Global signals
European stocks fell on third straight day as worries about debt level in Europe persist and German utilities down after the government announcement to impose a tax on nuclear fuel. As of writing this report, FTSE 100 was trading at 0.83% lower.
All the major Asian indices closed in the positive territory except Straits times that closed marginally lower. SGX Nifty closed 78.50 points lower.
The US stock index futures signal mixed opening at the Wall Street on Tuesday as persistent fears over Europe's debt crisis hit the region's stocks and overshadow soothing comments from Federal Reserve’s Chairman Ben Bernanke.
Indian indices
Bears continued to act together on the second consecutive day. Despite of firm Asian cues, the Indian indices wiped out its morning gains to close in the negative territory. The bourses witnessed losses of around 1% on the back of weak European markets as Euro zone debt worries persist and German governments’ announcement to impose a tax on nuclear fuel.
The Sensex opened 20 points lower at 16761, trading in the red briefly and soon turning positive on firm Asian markets. The markets remained choppy throughout the session. The markets trimmed gains in mid-morning trade on profit taking. The key benchmark indices regained strength in early afternoon trade to touch the day’s high of 16896. Post lunch, the European markets turning negative dragged the domestic market lower. A sell-off gripped the market in mid-afternoon trade as the Sensex hit the day’s low of 16560 while Nifty breached the crucial 5000 levels. Finally, the Sensex ended the session 164 points down at 16617. The Nifty signed off below 5000, at 4987, 47 points lower.
Market sentiment
The market breadth was negative as trailing shares outpaced the advancing stocks. Of the 2,927 stocks traded on the BSE, 1,672 stocks declined, whereas 1,126 stocks gained. Hundred and twenty nine stocks traded unchanged.
Sectoral & stock screening
All the 13 sector indices on the BSE closed in the red except BSE fast moving consumer goods (FMCG) that closed higher by 0.69%. Sectors that were hit the worst were - BSE Realty down by 2.57% and BSE Metal declined by 2.19%. Rest of the sectors fell in the range of 0.25%-1.38%.
Among 'A' group stocks, Mahindra & Mahindra Financial was the star stock of the day posting gains of 8.72%, followed by Procter & Gamble that surged by 4.38% and Hindustan Copper that rose by 3.07%. Among losers, REI Agro slid the most by 9.05%, followed by Hindalco Industries that fell by 5.81% and GTL Infrastructures that shed 5.01%.
Viewing volumes
India's second largest listed cellular services provider by sales - Reliance Communications saw highest trading with over 0.70 crore shares changing hands on the BSE, India’s second largest developer - Unitech (0.50 crore shares), aluminum major - Hindalco Industries (0.49 crore shares), industrial finance company - IFCI (0.37 crore shares) and followed by wind turbine major - Suzlon Energy (0.32 crore share).

Nifty June 2010 futures below 5,000

Turnover rises
Nifty June 2010 futures were at 4,963, at a discount of 24.10 points compared to spot closing of 4,987.10. Turnover in NSE's futures & options (F&O) segment increased to Rs 86,540.16 crore from Rs 80,625.72 crore on Monday, 7 June 2010.

JSW Steel June 2010 futures were at discount at 1009 compared to the spot closing of 1014.
Hindalco Industries June 2010 futures were near spot price at 133 compared to the spot closing of 132.50.
Tata Steel June 2010 futures were at premium at 452.95 compared to the spot closing of 451.25.
In the cash market, the S&P CNX Nifty fell 46.90 points or 0.93% at 4,987.10

Sensex ends lower on European woes

Indian equities continued to drop for the second day on Tuesday. At the close, the benchmark 30-share index, BSE Sensex lost 163.97 points or 0.98% at 16,617.10. Meanwhile, the broad based NSE Nifty fell by 46.90 points or 0.93% at 4,987.10.
Sensex Movers
ICICI Bank contributed fall of 36.54 points in the Sensex. It was followed by Reliance Industries (30.24 points), Bharti Airtel (16.54 points), Hindalco Industries (14.76 points) and Infosys Technologies (10.53 points).

However, Housing Development Finance Corporation contributed rise of 7.83 points in the Sensex. It was followed by ITC (7.45 points), Tata Power Company (3.82 points), NTPC (2.1 points) and Hindustan Unilever (0.84 points).
Biggest gainers in the 30-share index were Tata Power Company (1.43%), Cipla (0.89%), Housing Development Finance Corporation (0.86%), ITC (0.78%), NTPC (0.50%), and Hindustan Unilever (0.26%).
On the other hand, Hindalco Industries (5.81%), Reliance Communications (4.69%), Bharti Airtel (3.77%), ICICI Bank (3.00%), DLF (2.57%), and Reliance Infrastructure (2.50%) were the major losers in the Sensex.
Mid & Small-cap Space
The BSE Mid and small caps outperformed their larger counterparts declining 0.55% and 0.55% respectively.
The major losers in the BSE Midcap were Aban Offshore (2.33%), Core Projects and Technologies (1.42%), Ackruti City (0.94%), A I A Engineering (0.57%) and Allahabad Bank (0.12%).
The major losers in the BSE Smallcap were Abhishek Industries (4.18%), Action Construction Equipment (3.52%), A B G Shipyard (1.95%), Aarti Industries (0.96%) and A B G Infralogistics (0.92%).
The BSE Smallcap index was at 8468.3 down by 47.06 points or by 0.55%.
The major losers were Abhishek Industries (4.18%), Action Construction Equipment (3.52%), A B G Shipyard (1.95%), Aarti Industries (0.96%) and A B G Infralogistics (0.92%).
Sectors in Limelight
The Realty index was at 2,903.78, down by 76.6 points or by 2.57%. The major losers were Indiabulls Real Estate (3.97%), Housing Development and Infrastructure (3.27%), D L F (2.57%), Ackruti City (0.94%) and Sunteck Realty (0.86%).
The Metal index was at 13,888.55, down by 311.18 points or by 2.19%. The major losers were Hindalco Industries (5.81%), Hindustan Zinc (1.96%), JSW Steel (1.88%), National Aluminium Company (0.99%) and Jindal Steel & Power (0.2%).
The Oil & Gas index was at 9,817.22, down by 137.74 points or by 1.38%. The major losers were Essar Oil (4.12%), Bharat Petroleum Corporation (3.29%), Aban Offshore (2.33%), Cairn India (1.06%) and G A I L (India) (0.78%).
On the other hand, the FMCG index was at 3,067.04, up by 21.04 points or by 0.69%. The major gainers were Godrej Consumer Products (1.91%), Dabur India (1.21%), Colgate-Palmolive (India) (0.87%), I T C (0.78%) and Hindustan Unilever (0.26%).
Market Breadth
Market breadth was negative with 1,151 advances against 1,699 declines.
Value and Volume Toppers
Tata Steel topped the value chart on the BSE with a turnover of Rs. 1,326.12 million. It was followed by Reliance Communications (Rs. 1,176.55 million), State Bank Of India (Rs. 953.45 million) and Sesa Goa (Rs. 934.90 million).
The volume chart was led by Cals Refineries with trades of over 11.38 million shares. It was followed by Spicejet (10.92 million), Rana Sugars (9.28 million) and Reliance Communications (7.02 million).

Stock Picks and Recommendations

Stocks with Buy rating:
Mahindra & Mahindra
Current market price: Rs 545
Target price: Rs 725
Upside: 33.02%
Brokerage: Emkay
Recommendation: Buy

The broking house said that M&M`s 4QFY10 standalone net profit at Rs 5.7 billion was above our estimates of Rs 4.6 billion driven by higher net sales (Rs 53 billion vs estimate of Rs 51 billion) and higher EBIDTA margins (15.9% vs estimate of 14.6%). Higher net sales are largely due to sharp increase in sales of FES (QoQ avg realization are up by 4%). Balance sheet surprised positively with strong cash balance Rs 17.5 billion vs estimate of Rs 13 billion).
The broking house has upgraded their FY11 volume estimates by 2% to 468,618 units but lower our EPS to Rs 33.9. They are factoring in EBIDTA margin compression of 130 bps to 13.4% in FY11, the most in their auto universe; we introduce our FY12 estimates with volume growth of 7.4% and EPS of Rs 37.7. They have upgraded their SOTP based target to Rs 725 (from Rs 630). They have upgraded the standalone business value to Rs 575 (from Rs 470) and lowered value of subsidiaries to Rs 150 (from Rs 160). They have upgraded their rating from Accumulate to Buy.
SAIL
Current market price: Rs 202
Target price: Rs 235
Upside: 16.33%
Brokerage: ICICI Sec
Recommendation: Buy
The broking firm says that at this point they have not changed their estimates for FY11E and FY12E, as there has been no major development on that front so far. They believe steel prices could fall slightly on growing concern over China. International prices have also fallen during the past two or three weeks.
With SAIL (Q,N,C,F)* being an integrated player with increasing focus on the value added segment, they feel it would be least affected in any negative scenario. The domestic presence would also continue to help the company to maintain its sales volume.
At the current market price (CMP) of Rs 202, the stock is discounting its FY12E earnings by 9.3x and FY12E EV/EBITDA by 5.7x. They value the stock at 6.5x FY12E EV/EBITDA, which translates to a fair value of Rs 232. They continue to maintain their target price of Rs 235 and assign a `Buy` rating to the stock.
Jaiprakash Associates
Current market price: Rs 120
Target price: Rs 173
Upside: 44.16%
Brokerage: Sharekhan
Recommendation: Buy
The broking house said that they have fine-tuned our earnings estimates downward to incorporate a lower than expected Q4FY2010 performance. Consequently, their revised EPS for FY2011 and FY2012 on diluted equity works out to Rs 5.2 and Rs 6.5 respectively.
They continue to value the stock using SOTP valuation methodology. They have valued the cement business at 6x FY2011 enterprise value (EV)/earnings before interest, tax, depreciation and amortization (EBITDA), which they continue to value the real estate business at 1x of its net asset value.
For power projects, they have considered those projects in their valuation that are either operational or financially closed. In terms of the hotel business, they have valued the same at 7x FY2011 EV/EBITDA. The fair value based on SOTP works out to Rs 173 per share. They maintain our Buy recommendation on stock with a revised price target of Rs 173. At the current market price, the stock is trading at 23.1x FY2011 and 18.6x FY2012 earnings estimate.
Stocks with Sell rating:
Hindustan Unilever (HUL)
Current market price: Rs 235
Target price: Rs 204
Downside: 13.19%
Brokerage: Anand Rathi
Recommendation: Sell
Hindustan Unilever (HUL) reported a weak 4QFY10, with net profit declining 12%. the broking house expect it to post mere 3% earnings CAGR over FY10-12, given market share loss and lower margins. They retain our Sell rating and target price of Rs 204. Revenue grew a lacklustre 8% y-o-y, single-digit growth for the fifth straight quarter. Volumes grew 11%, but the price cuts of major brands led to revenue growth of 8%.
Soap and Detergent revenue fell 1.9%, mainly due to price cuts. Personal products revenue grew 18.9%, maintaining its growth momentum. EBIT margin in Soaps and Detergents and Personal products declined 377 bp and 86 bp because of price cuts and higher media costs. EBITDA margin was down 90 bp, with adspend as percent of net sales rising 320bp. The effective higher income tax rate led to a 12% fall in net profit.
The broking house has reduced FY11/12 earnings estimates 2.6% and 7.6%, respectively, to factor in higher raw material costs, media costs and higher taxes. They retain their target price of Rs 204, at 20x 12-month forward earnings. Their target PE is at a 25% premium to the Nifty, compared with its 10-year average premium of 87%. Given the lower margins and earnings, we expect the premium to fall.
ITC
Current market price: Rs 282
Target price: Rs 251
Downside: 10.99%
Brokerage: Anand Rathi
Recommendation: Sell
The broking firm said that despite good 4QFY10 results, they reiterate Sell as they expect cigarette volume to drop 4% in FY11. With its largest cash generator cigarette business under pressure, its premium valuations are unjustified, in their view. They reiterate their Sell rating, but raise the target price to Rs 251. In 4Q, ITC`s (Q,N,C,F)* revenue grew 29.9% y-o-y. All divisions did well: cigarette revenue rose 14%, other FMCG 34%, agri 88% (in 4Q09 revenue declined 51%), paper 12% and hotels 14% (after five quarters of decline).
EBITDA margin fell 200 bps y-o-y, mainly because of the rise in the low-margin agri-business. Higher other income and a lower tax rate helped the company post net profit growth of 27%. Given the excise and VAT hike of almost 19% in Budget 2010, the broking house expects cigarette volume to drop 4% in FY11. A weak performance by cigarettes is likely to crimp ITC`s profitability. They estimate revenue and net profit CAGR of 9% and 7%, respectively, over FY10-12.
Their revised target price to Rs 251 (from Rs 209) is at 20x FY12e earnings. Our target PE is at a 25% premium to the Nifty PE, compared with an average premium of 16% over the past 10 years. They expect the premium valuation to fall from the current 60% to the Nifty given our view of lower cigarette volume growth.
Hero Honda
Current market price: Rs 1,918
Target price: Rs 1,800
Downside: 6.15%
Brokerage: Anand Rathi
Recommendation: Sell
The broking firm said that Hero Honda`s (HH) May `10 volumes grew 13.9% yoy (17.3% mom), to 435,933 units. The month-over-month sales growth came on the lower Apr `10 base when HH faced an acute battery shortage for two weeks, and led to nearly 50,000 fewer units being dispatched. May `10 volumes were its highest ever. Pleasure was the best performing model for HH in May, with 65% yoy growth to over 24,000 units.The past four months have seen HH sustaining scooter volumes of over 22,000 units per month.
HH introduced two new models in April - the refreshed Glamour and Glamour FI. It plans to continue to build on its strategy of innovation and technology focus by introducing new products and product refreshes. HH recently crossed a significant milestone by covering 100,000 villages under its rural initiative: ``Har Gaaon Har Angan``. This umbrella platform for all rural initiatives has helped in steadily widening its presence in rural and upcountry markets, taking its contribution to sales to 42% of the total. Mounting competition and new launches from Bajaj Auto have resulted in HH`s market share coming under pressure. At present valuations of 16x FY11, the stock is fairly valued. Re-iterate Sell.

NSE Bulk Deals to Watch - June 8 2010

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
08-JUN-2010,EVERONN,Everonn Education Limited,GRANTHAM MAYO VAN OTTERLOO AND CO LLC A/C TRESURER OF THE S,BUY,110000,388.17,-
08-JUN-2010,KARURKCP,Karur K.C.P. Packkagings,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,88415,63.10,-
08-JUN-2010,KARURKCP,Karur K.C.P. Packkagings,SAR AUTO PRODUCTS LIMITED,BUY,49673,64.14,-
08-JUN-2010,RANASUG,RANA SUGARS LTD,EDELWEISS ESTATES P LTD,BUY,1717515,12.03,-
08-JUN-2010,TARAPUR,Tarapur Transformers Ltd,RAINDROP FINANCIAL SERVICES PVT LTD,BUY,104386,38.75,-
08-JUN-2010,IPCALAB,Ipca Laboratories Ltd.,CAPITAL RESEARCH & MANAGEMENT COMPANY A/C NEW WORLD FUND IN,SELL,1078838,275.42,-
08-JUN-2010,KARURKCP,Karur K.C.P. Packkagings,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,96435,62.59,-
08-JUN-2010,KARURKCP,Karur K.C.P. Packkagings,SAR AUTO PRODUCTS LIMITED,SELL,142370,57.18,-
08-JUN-2010,PROVOGUE,Provogue (India) Limited,INDIANIVESH SECURITIES PRIVATE LIMITED,SELL,592059,49.25,-
08-JUN-2010,RANASUG,RANA SUGARS LTD,EDELWEISS ESTATES P LTD,SELL,1067853,12.15,-
08-JUN-2010,RANASUG,RANA SUGARS LTD,KII DR.,SELL,795000,12.03,-
08-JUN-2010,RANASUG,RANA SUGARS LTD,KII LTD DR,SELL,1040000,12.00,-
08-JUN-2010,TARAPUR,Tarapur Transformers Ltd,RAINDROP FINANCIAL SERVICES PVT LTD,SELL,104386,38.26,-

Yellow metal sets new record high

Prices set fresh record prices in multiple currencies
Bullion metal prices shot up on Tuesday, 08 June 2010 at Comex. Concerns regarding global economic health pushed prices higher. US stocks slipped considerably earlier during the day thereby pushing bullion metals higher as they once again showed their resilience to trying times as they are often viewed as better investment alternates.

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. Recently, the embattled euro has played stronger role in moving prices rather than dollar fluctuation. Bullion metals have registered increase in prices despite strong dollar in recent times.
On Tuesday, gold for August delivery ended at $1,243.1 an ounce, higher by $4.8 (0.4%) an ounce on the New York Mercantile Exchange. Gold did trade to a new all time high, at $1254.40 in the overnight session, but quickly pulled back from those levels and never retested them in pit trade. Last week, gold ended higher by 0.3%. Before today, prices had touched an all time high of $1,249.7 on 14 May 2010. Today, once again, it fell a little short of the same.
Gold also has set fresh record prices in euros, the British pound, the Indian rupee, the South African rand and the Chinese yuan, among others.
Gold for June delivery had settled above $1,200 in early December 2009, only to pull back to $1,172 area and dip as much as the $1,050 vicinity in early February 2010. Gold ended May higher by 3%. For the month of April, gold ended higher by 6%. For the first quarter of this year, gold rose by 1.7%, its sixth quarterly rise. On a year to date basis, gold is higher by 13.2%.
On Tuesday, July Comex silver futures ended higher by 32 cents (1.7%) at $18.47 an ounce. Last week, silver ended lower by 6%. For May, silver shed 1.1%. For the month of April, silver ended higher by 4.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 6.5%.
In the currency market on Tuesday, the euro was able to rebound and net a gain of roughly 0.3% at $1.196 after oscillating for most of the session. The dollar index fell marginally today.
U.S. stocks traded in a choppy pattern Tuesday, initially drawing support from comments made late Monday by Federal Reserve chief Ben Bernanke before gains faded into losses. Bernanke said he didn't expect to see a double-dip recession in the U.S. That was tempered, however, by more concerns about Europe's economic health as Fitch Ratings warned that the U.K. faces enormous budget problems. But US stocks managed to recover at the end.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.
At the MCX, gold prices for August delivery closed higher by Rs 30 (0.16%) at Rs 18,991 per ten grams. Prices rose to a high of Rs 19,198 per 10 grams and fell to a low of Rs 18,907 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 255 (0.87%) higher at Rs 29,422/Kg. Prices opened at Rs 29,157/kg and rose to a high of Rs 29,563/Kg during the day's trading.

Cautious start likely on Euro woes

Headlines for the day:
Bharti buys Zain Africa for $10 bn
Hindalco eyes double-digit growth in domestic demand
RIL's Haryana, Navi Mumbai SEZs get extension

Events for the day:
Major corporate action
Fatpipe Networks India IPO closes today
Ex-date for right issue of Suzlon Energy
Ex-date for dividend of State Bank of India, ITC
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares fell on Tuesday, hitting a near two-week closing low, with investors jittery after Fitch Ratings said the UK faced a formidable fiscal challenge and British Petroleum sinking on fresh oil spill worries.
The US stocks mostly rose in volatile trading on Tuesday, led by materials and financial shares, but investors shied away from big-cap technology shares on concerns about their European exposure.
In today's trade, the Asian markets were trading slightly lower on account of Euro-zone worries. SGX Nifty was trading merely one point lower.
Indian Indices
Yesterday, after holding stable for most part of the day, the markets fell sharply in the last hour, which led the Nifty to close below its psychological 5000 levels.
Asian markets fell for the third time in four days as the stronger yen dragged down Japanese exporters and on concern that the Europe’s debt crisis will worsen after Fitch Ratings called the U.K.’s fiscal challenge formidable.
Today, the Indian indices are likely to start on a cautious note. Scrip specific action can be seen from companies like Bharti Airtel as Bharti closed its deal with Zain Africa for $10 billion and in commercial vehicle stocks as their sales are expected to rise 15-25% in 2010-11. Oil & gas stocks will also be in focus ahead of its empowered group of ministers (EGoM) meet, which is scheduled to be held tomorrow (June 10, 2010)
The stocks will likely trade directionless until investors get a clearer picture on the impact of the European debt crisis to the global economy.
Commodity cues
In the commodity space, the crude oil prices edged higher Tuesday, ahead of an industry group's weekly inventory report and other supply and demand data slated for later in the week, with the Nymex light crude oil for the July series rose by $0.55 per barrel, whereas in the metals space, the Comex Gold for the July series surged by $4.70 to a troy ounce and the Comex Silver for the July series was up by $0.32 to a troy ounce.
Daily trend of FII/MF investment in equities
On June 08, 2010, the foreign institutional investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs215.90 crore, whereas the domestic mutual, on June 07, 2010, were the net sellers of the stocks to the tune of Rs290.50 crore.

Kindly Adjust

The art of life lies in a constant readjustment to our surroundings. - Okakura Kakuzo
The market seems to be in no mood to adjust to investor’s expectations. Just when some semblance seems to have been restored on Tuesday, some dumping of stocks, reportedly ‘basket selling’ took the sheen of the indices and send them tumbling.
Expect a flat start and subdued action for the first half of the day. No domestic trigger seems strong enough to guide the market for now. As we remain at the mercy of the global indices, keep a close eye on your portfolio rather than swaying to the overall beat.

Asian markets are flat to negative. The stronger yen seems to be pulling Japanese exporters. The dollar lost against most currencies falling 0.1% against the yen. The euro rose 0.1% against the dollar and the rupee closed stronger at 46.95 against the dollar.
The Dow Jones added 123 points while the Nasdaq wiped out its gains and closed marginally lower. Concerns continue on the European crisis. Fitch said that "following an unprecedented economic and financial shock, the scale of (Britain's) ... fiscal challenge is formidable and warrants a strong medium term consolidation strategy -- including a faster pace of deficit reduction than set out" in April by the previous Labour government. "
The Bank of England is set to keep its key interest rate at a record-low 0.50% on Thursday. Reports state that BoE will stay away from any quantitative easing policy.
British Prime Minister David Cameron had said ‘the state of Britain's finances was even worse than we thought’ and warned of "painful" and unavoidable cuts to tackle the record deficit.
Meanwhile, the IMF has said that risks to the global economic outlook have "risen significantly" and policy makers have limited room to provide support to growth.
Most advanced economies are experiencing a "subdued" recovery, International Monetary Fund Deputy Managing Director Naoyuki Shinohara said.
Gold prices hit an all-time high of Rs 19,140/10 grams on Tuesday.
On the weather front, the monsoon is set to further advance over some parts of Konkan, Goa, Madhya Maharashtra, Karnataka and Andhra Pradesh during the next three days, an India Meteorological Department (IMD) update stated.
The direction of the euro tends to be taken as a proxy for worries about the European debt crisis and its impact on the global economy
The Indian markets ended in the red on Tuesday extending losing streak to second straight trading session. Markets opened on a flat note and stayed in a narrow range for the first half of the day. However, markets fell sharply in the second half amid doubts over the sustainability of the global recovery after credit ratings agency Fitch warned that United Kingdom faces a "formidable" fiscal challenge.
The Realty, Banking, Oil & Gas and the Metal stocks were heavily pounded Even the second rung stocks were under pressure. "While, the equity markets ended in deep red for second day, spot gold was seen hitting a high of US$1,252 a troy ounce on safe haven buying", says Amar Ambani Vice President Research IIFL.
Coming back to domestic developments, the much awaited Empowered Group of Ministers on petroleum pricing was deferred, in other words, the government failed to reach a decision of freeing auto fuel prices from government control. However, stocks like HPCL, BPCL and IOC ended with gains after media reports stated that the EGOM would meet on in the coming days.
Finally, the BSE 30-share Sensex fell 167 points at 16,617 and NSE Nifty lost 47 points at 4,987.
Markets in Asia ended marginally in the green; the Nikkei in Japan edged higher by 0.2%, Australia's S&P/ASX gained 1.3% while the Hang Seng index in Hong Kong was up 0.6% and Shanghai index in China ended flat.
European indices however were trading in the negative terrain, the DAX in Germany was down 1%, the CAC 40 index in France was down 1% and the FTSE in the UK was down 1%.
Barring the BSE FMCG index all the other BSE sectoral indices ended in the negative terrain. Among the major losers were, BSE Realty index, it fell 2.5%, followed by BSE Metal index down 2.1% and BSE Oil & Gas index down 1.4%. Even the BSE Mid-Cap index and the BSE Small-Cap index fell by 0.4% each.
Outside the frontline indices, the big losers in the broader market were REI Agro, GTL Infra, KSK Energy and Essar Oil. On the other hand, gainers included M&M Fin, P&G, Hindustan Copper, GMDC and Thermax.

Daily News Roundup - June 9 2010

Bharti Airtel announced the completion of its deal to acquire the African assets of Zain, at an enterprise value of US$10.7bn. (BS)
US-based Georgia Institute of Technology (Georgia Tech) and Infosys Technologies announced to partner on potential research and educational opportunities. (ET)
The Inter-connected Stock Exchange of India has selected TCS to install and manage its integrated trading, clearing and surveillance platform. (FE)

Reliance Industries got a year’s extension for its SEZs in Haryana and Navi Mumbai. (BS)
Hindustan Unilever intends to dramatically increase its rural distribution reach. (BL)
Tata Steel said its subsidiary, Tata Steel Global Mineral Holdings, has raised its stake to 27.4% from 19.9% in Canada's iron ore explorer New Millennium Capital Corp. (FE)
Hindalco expects domestic demand to post a double-digit growth in the current financial year. (BS)
Hindalco Industries plans to borrow about Rs140bn in the next couple of years to build two new plants. (ET)
Tata Power plans to add 750MW during 2010-11. (BS)
JSW Steel registered a 23% rise in crude steel production in May to 0.56mt compared to the corresponding period in the previous year. (FE)
The government has allowed DLF to revive its plan for a SEZ in Kolkata. (ET)
Yes Bank plans to open 100 new branches in a year. (ET)
GMR Group is planning to re-design and revive its plans to set up a SEZ in Tamil Nadu from an IT & ITeS based SEZ to a solar energy based manufacturing zone. (BS)
HCC Infrastructure, a 100% subsidiary of HCC, inked a MoU with Orascom Construction Industries for bidding and developing large NHAI projects in India. (BS)
NMDC is forming a 51:49 joint venture with Monnet Ispat & Energy to acquire and develop coal blocks in India. (ET)
Ranbaxy Laboratories launched the generic version of Lipitor in South Africa. (BL)
Glenmark Pharmaceutical has scored in its patent tussle with Sanofi Aventis and Abbott after the New Jersey district court upheld the challenge by the Indian company for a hyper-tension drug. (ET)
Aurobindo Pharma said it has allotted 0.16mn shares worth US$20mn to some of the company's FCCB holders. (FE)
KSK Energy has entered into a power purchase agreement with the Gujarat Urja Vikas Nigam Ltd for supply of 1,010MW of power from its power plant coming up at Nariyara in Chhattisgarh. (BL)
Goldman Sachs Investment Partners Mauritius picked up 6% stake in SpiceJet by converting the 150mn warrants it had purchased from the airline in December 2008 into equity. (ET)
Japan's JR Kyushu Group and Patni Computer Systems announced a 51:49 JV to provide IT and product engineering services to the Japanese enterprise market. (BL)
Neyveli Lignite Corporation (NLC) has swapped a loan taken from REC at 11.1% with borrowings at 9.7% from a consortium of 12 banks, headed by public sector lender Bank of Baroda. (FE)
Andhra Bank has tied up with UAE Exchange Centre WLL, Kuwait for speedy remittance of funds from Kuwait to its customers. (BL)
Dish TV plans to launch Conditional Access Module, a device that allows subscribers to switch over to a new operator using the same set-top box. (BL)
Punj Lloyd won a contract worth Rs1.8bn from the Rajiv Gandhi Institute of Petroleum Technology to construct their technical institute at Jais in Rae Bareli, Uttar Pradesh. (BL)
Consolidated Construction Consortium bagged Rs2bn order from the Airports Authority of India for development works at the Goa Airport. (FE)
Apollo Tyres plans to spend Rs11bn for increasing production capacity at its facilities in India and overseas during the 2010-11. (BL)
South Korean company Doosan Heavy Industries and Construction Co Ltd is planning to set up a power equipment manufacturing facility in India. (BL)
Jindal Infrastructure Limited, a JSW Group Company, which proposed to up Rs22.4bn captive deep sea port at Bichitrapur in Orissa's Balsore district, targets to achieve a cargo throughput of 10mtpa in the first phase. (BS)
A meeting called by the Chief Labour Commissioner failed to resolve the workers' strike which began on Sunday night at Hyundai Motor India Ltd's factory at Sriperumbudur, Chennai. (BS)
Lodha Developers will invest Rs20bn to develop the world’s tallest residential tower in Mumbai. (ET)
The power ministry is likely to change the location of the proposed 4,000MW UMPP at Sarguja in Chhattisgarh. (BS)
The Drugs & Pharmaceuticals Manufacturers Association has received in-principle approval for its proposed SEZ for pharmaceuticals, bulk drugs, active pharmaceutical ingredients and formulations to be located at Nakkapalli mandal in Visakhapatnam district. (BS)
The government has asked CNG retailers in the national capital and Mumbai to defer by a week the increase in CNG prices that had become necessary after doubling of natural gas prices. (BS)
The steel ministry has proposed to introduce stricter norms for iron ore exports by way of a grading system for duties and consider eligibility criteria for exporters or companies engaged in the activity. (BS)
The government is considering radical changes in its policy for appointment of heads of blue-chip PSUs. (BS)
The Board of Approval for Special Economic Zones granted approvals to six new SEZs with a total proposed investment of over Rs80bn. (BL)
The Ministry of Environment and Forests has given permission for continuation of survey and investigations for three mega power projects in North Sikkim that had been put on hold following adverse reports submitted by Centre of Inter-Disciplinary Studies of Mountains and Hill Environment (CISME) last year. (BL)
The Deepak Parekh Committee on India Infrastructure Debt Fund has recommended a slew of regulatory changes to pave the way for foreign insurance and pension funds to invest in the proposed Debt Fund. (BL)
The government’s ambitious UID project will get a big boost, with country’s largest insurer Life Insurance Corporation of India agreeing to share its database of more than 200mn policyholders with the Unique Identification Authority of India. (ET)
The government’s revenue from sale of 3G and broadband wireless airwaves (BWA) crossed Rs 1tn on Monday. (ET)
State governments stuck to their demands of higher threshold for central Goods and Services Tax and keeping local body taxes and electricity duty out of it. (ET)
The government may allow export of 10,000 tons of sugar to the European Union. (ET)

Annual Report - Ranbaxy - 2009-2010

RANBAXY LABORATORIES LIMITED
ANNUAL REPORT 2009
DIRECTOR'S REPORT
Your Directors have pleasure in presenting the 49th Annual Report and
Audited Accounts for the year ended December 31, 2009.

STANDALONE WORKING RESULTS (UNDER INDIAN GAAP)
Rs. in Million
Year ended Year ended
December 31, December 31,
2009 2008
Net Sales 45,359.09 43,393.63
Profit/(Loss) before Interest,
Exchange (Gain)/ Loss (Net) 11,002.73 (5,713.32)
on Loans, Depreciation, Amortization,
Impairment and Tax
Interest 394.66 1,458.28
Exchange (Gain)/ Loss on Loans (1,493.13) 7,474.52
Depreciation, Amortization and Impairment 1,482.03 1,544.69
Profit/(Loss) before Tax 10,619.17 (16,190.81)
Tax charge/ (Benefit) 4,899.33 (5,742.79)
Profit/(Loss) after Tax 5,719.84 (10,448.02)
Balance as per last Balance Sheet (8,265.83) 2,162.69
Transfer from Foreign Projects Reserve 13.76 19.50
Surplus/(Deficit) carried forward (2,532.23) (8,265.83)
CONSOLIDATED WORKING RESULTS
(UNDER INDIAN GAAP)
Net Sales 73,441.32 72,555.23
Profit/(Loss) before Interest, Exchange
(Gain)/ Loss (Net) on Loans, Depreciation, 11,991.04 (2,626.26)
Amortization, Impairment and Tax
Interest 710.43 2,055.01
Exchange (Gain)/ Loss on Loans (1,493.13) 7,494.35
Depreciation, Amortization and Impairment 2,676.12 2,824.69
Profit/(Loss) before Tax 10,097.62 (15,000.31)
Tax charge / (Benefit) 6,990.87 (5,650.84)
Profit/(Loss) after Tax 3,106.75 (9,349.47)
Share in (Loss)/Profit of Associates(Net) (32.38) (78.21)
Minority Interest (109.45) (84.37)
Profit/(Loss) for the year 2,964.92 (9,512.05)
Balance as per last Balance Sheet (4,009.92) 5,482.63
Transfer from Foreign Projects Reserve 13.76 19.50
Surplus /(Deficit) carried forward (1,031.24) (4,009.92)
CONSOLIDATED FINANCIAL STATEMENTS:
Consolidated Financial Statements for the year ended December 31, 2009,
under Indian GAAP form part of the Annual Report.
OPERATIONS:
The Company recorded net consolidated sales of Rs. 73,441 Mn against
Rs.72,555 Mn in the previous year. Profit before Tax stood at Rs.10,098 Mn
against a loss of Rs. 15,000 Mn for the previous year. Profit after Tax for
the year stood at Rs. 3,107 Mn against a loss of Rs. 9,349 Mn for the
previous year. The turnaround in profits from operations was primarily on
account of revenues from First to File products in the US market, cost
optimization and higher gross margin due to changes in product mix. The
strengthening of rupee versus dollar also contributed towards increased
earnings. The Company continues to focus on cost optimization and efficient
working capital management. The Company has started pursuing Hybrid
Business Model with Daiichi Sankyo Company, Limited (DS), its Holding
Company, to leverage the strengths of both the organizations. During the
year the Company launched a DS branded product in India and another
Innovator product in Romania. The Company intends to launch such products
in Africa as well in other countries. In addition, the Company and DS are
working on various initiatives to leverage cost synergies arising from
back-end functions such as IT and manufacturing.
In regard to Application Integrity Policy, warning letters to its
manufacturing facilities at Poanta Sahib (India) and Gloversville (USA) and
import alert issued by USFDA, the Company is continuously making sincere
efforts for early resolution of the issues raised by the USFDA and the
Department of Justice and is fully co-operating with the said authorities.
DIVIDEND:
In view of the carry forward losses, no dividend has been declared for the
year.
CHANGES IN CAPITAL STRUCTURE:
Allotment of shares on exercise of Employees' Stock Options:
During the year, the Company allotted Equity Shares (on pari-passu basis)
pursuant to exercise of Stock Options by the eligible employees, as
summarized below:
Date of Allotment No. of Shares
July 13, 2009 2,160
October 12, 2009 45,445
SUBSIDIARIES AND JOINT VENTURES:
Japan:
Japan, as the second largest Pharmaceutical market in the world, offers
significant opportunity in the generic arena due to low generic penetration
and the Ministry of Health, Labor and Welfare's target of 30%
genericization in Japan by 2012. With a view to have a larger participation
in growth in the generic filing opportunities in Japan, the Company set up
a wholly-owned subsidiary in Japan under the name of Ranbaxy Japan K. K.
and divested its stake in Nihon Pharmaceutical Industry Co. Limited, a
joint venture in Japan with Nippon Chemiphar Co., Limited.
China and Vietnam:
As a part of consolidating its operations, the Company has divested its
stake in its subsidiaries in Vietnam and China, having manufacturing
operations. However, the Company continues to have marketing presence in
Vietnam and China as these are important pharmaceutical markets.
A statement pursuant to Section 212 of the Companies Act, 1956 ('Act'),
relating to subsidiary companies is attached to the accounts. In terms of
the approval granted by the Central Government vide letter no. 47/708/2009-
CL-III dated December 8, 2009, under Section 212(8) of the Act, the audited
accounts and Reports of Board of Directors and Auditors of the Company's
subsidiaries have not been annexed to this Annual Report. The consolidated
financial statements prepared in accordance with Accounting Standard - 21
issued by the Institute of Chartered Accountants of India presented in this
Annual Report include the financial information of the subsidiary
companies.
ACQUISITIONS:
The Company has acquired:
(a) Marketing rights for dermatological and lifestyle products from Ochoa
Laboratories Limited, to complement the Company's existing derma portfolio;
and
(b) Business and manufacturing facility in Bangalore from Biovel Life
Sciences Private Limited. This will provide a platform to the Company to
manufacture vaccines as well as bio-therapeutics.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management Discussion and Analysis Report, as required under the Listing
Agreements with the Stock Exchanges, is enclosed at Annexure 'A'.
EMPLOYEES' STOCK OPTION SCHEME:
Information regarding the Employees' Stock Option Scheme is enclosed at
Annexure 'B'.
LISTING AT STOCK EXCHANGES:
The Equity Shares of the Company continue to be listed on Bombay Stock
Exchange Ltd. and The National Stock Exchange of India Ltd. Global
Depository Shares are listed on the Stock Exchange at Luxembourg and
Foreign Currency Convertible Bonds are listed on the Singapore Exchange
Securities Trading Ltd. The annual listing fees for the year 2009-2010 have
been paid to these Exchanges.
DISCLOSURE OF PARTICULARS:
As required by the Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988, the relevant information and data is given
at Annexure 'C'.
FIXED DEPOSITS:
The Company has not invited / received any fixed deposits during the year.
DIRECTORS' RESPONSIBILITY STATEMENT:
In terms of provisions of Section 217(2AA) of the Companies Act, 1956,
('Act'), your Directors confirm that:
(i) In the preparation of the annual accounts, the applicable accounting
standards have been followed, along with proper explanation relating to
material departures, wherever applicable.
(ii) The Directors have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company, as at the end of the accounting year and of the profit of the
Company for the year.
(iii) The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
(iv) The Directors have prepared the annual accounts on a going concern
basis.
DIRECTORS:
On May 24, 2009, Mr. Malvinder Mohan Singh stepped down as Chairman, CEO &
Managing Director, Dr. Tsutomu Une was elected as the non - executive
Chairman of the Board of Directors and Mr. Atul Sobti was appointed as the
CEO & Managing Director of the Company. The shareholders of the Company
vide their resolution dated September 22, 2009, passed through postal
ballot, approved the appointment of Mr. Sobti as CEO & Managing Director of
the Company for a period of 3 years. Mr. Sunil Godhwani and Mr. Balinder
Singh Dhillon resigned from the Directorship of the Company effective May
24, 2009. The Directors place on record their appreciation for valuable
contributions made by the outgoing Directors.
Dr. Tsutomu Une and Mr. Atul Sobti who were appointed as Directors of the
Company in the casual vacancies caused by resignations of Mr. V.K. Kaul and
Mr. Vivek Mehra respectively, hold office upto the date of this Annual
General Meeting. The Company has received Notice(s) along with requisite
deposit from member(s) under Section 257 of the Companies Act, 1956,
proposing the candidature of Dr. Tsutomu Une and Mr. Atul Sobti as
Directors of the Company. Mr. Atul Sobti being the Managing Director will
not be liable to retire by rotation in terms of the Articles of Association
of the Company.
Mr. Percy Shroff was appointed as a Director of the Company on March 27,
2009 against the casual vacancy caused by resignation of Mr. Harpal Singh.
CORPORATE GOVERNANCE:
Report on Corporate Governance along with the Certificate of the Auditors,
M/s. BSR & Co. Chartered Accountants, confirming compliance of conditions
of Corporate Governance as stipulated under Clause 49 of the Listing
Agreements with the stock exchanges forms part of the Annual Report.
COST AUDIT:
The reports of M/s. R.J. Goel & Co., Cost Accountants, in respect of audit
of the cost accounts relating to formulations and bulk drugs for the year
ended December 31, 2009, will be submitted to the Central Government in due
course.
AUDITORS:
M/s. BSR & Co., Chartered Accountants, retire as Auditors of the Company at
the conclusion of ensuing Annual General Meeting and have confirmed their
eligibility and willingness to accept the office of the Auditors, if re-
appointed.
STATEMENT OF EMPLOYEES:
Statement of particulars of employees as required under Section 217(2A) of
the Companies Act, 1956 ('Act') and Rules framed thereunder forms part of
this Report. However, in terms of the provisions of Section 219(1)(b)(iv)
of the Act, this Report and Accounts are being sent to all the shareholders
excluding the statement of particulars of employees under Section 217(2A)
of the Act. Any shareholder interested in obtaining a copy of the statement
may write to the Company Secretary at the Corporate Office of the Company.
ACKNOWLEDGEMENTS:
The Directors wish to place on record their appreciation of the significant
contribution made by each and every employee of the Company. The Directors
also thank all other stakeholders for their support and encouragement. Your
Directors look forward to your continued support in the years to come.
On behalf of the Board of Directors
Place: Gurgaon Dr. Tsutomu Une
Date : March 25, 2010 Chairman
ANNEXURE A
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE & DEVELOPMENTS:
The global pharmaceuticals market sales grew by approximately 5.7% (at
constant exchange rate), to reach US$ 727 Bn in 2009. North America, Europe
and Japan remained the key markets accounting for about 86% of the
worldwide pharmaceutical sales in 2009.
Developed Markets (US, Japan, UK, Spain, Germany, France, Italy and Canada)
grew by 4% during the year. The 'Pharmerging' markets (Brazil, Russia,
India, China, Turkey, Mexico and South Korea) continued to strengthen their
position in the global landscape and grew by 17% in 2009. Global
pharmaceutical market is projected to grow at a cumulative average growth
rate (CAGR) of 4-7% for the 2008-2013 period. Forecasted CAGR for the
Developed Market ranges between 2-5%, while the Pharmerging markets are
expected to have a CAGR between 13-16%, for the same period1.
Significant factors that have resulted in a slowdown in the pharmaceutical
market are (a) lower consumer spend due to the economic downturn, (b)
increased volume for generic drugs leading to a decrease in the total value
for the industry, and (c) lesser number of new patent protected products in
the market.
Pharmaceutical sales in North America, the world's largest market, were US$
316 Bn, a growth of 4.0%, constituting 43% of the global sales in 2009; of
these sales in the United States accounted for US$ 298 Bn and grew by 3.9%.
Europe clocked sales of US$ 226 Bn, a growth of 4.7%, and contributed 31%
to the global pharmaceutical industry. Sales in Latin America, led by key
markets of Brazil and Mexico, grew by 11.9%, to reach US$ 33 Bn. Asia,
Africa and Australia combined, grew by 9.6%, to US$ 152 Bn; Japan, the
world's second largest market, recorded sales of US$ 80 Bn, and grew by
6.1%.
The industry, especially in the generics market, has become highly
competitive. This, coupled with the drying up of pipelines of innovator
companies is leading to consolidation in the generics and innovator
industry, as a consequence, new hybrid models between innovator and generic
companies are evolving. Thus, the pharmaceutical industry is witnessing
adoption of new business models, where innovator and generic companies work
together to leverage each other's strengths. The new business model will
help innovator companies get access to emerging markets, lower
manufacturing and R&D cost base; while generics companies will gain from
higher R&D capabilities of innovators and access to innovator drugs.
Generics2:
The global generics market grew by 7.7% in 2009 to US$ 83 Bn, with the top
eight markets (US, Germany, UK, Canada, France, Spain, Italy and Japan)
contributing 76%. Growth in the generics segment in top eight markets was
8%, surpassing the 3% growth witnessed in the branded segment in the same
countries. In Japan, while generics accounted for only 14% of the market by
volume, growth during the year was a promising 12%.
Ranbaxy's collaboration with Daiichi Sankyo Co. Ltd. (DS) gives the Company
opportunity to tap the large genericizing Japanese market.
Growth in emerging markets is driven by increasing domestic consumption due
to strengthening of healthcare infrastructure, greater awareness and
improving economic conditions. Generics segment in emerging markets is
predominantly branded, which further improves attractiveness.
With over US$ 80 Bn of drugs going off patent in the next two years, and a
higher generic penetration across developed and emerging markets, the
generics market will continue to provide attractive growth opportunities.
Ranbaxy, with its diversified geographic reach across developed and
emerging markets, is well positioned to capitalise on opportunities in both
segments of the market.
1Source: IMS 31st Edition, January 2010
2Based on IMS MAT Nov 2009
The collaborative business model, as mentioned earlier, will also leverage
lower R&D cost and reach of the generics companies, especially in emerging
markets, for the innovator companies. With competitive advantages in R&D,
manufacturing and marketing, Indian companies today stand at the forefront
to partner with innovator pharmaceutical organizations.
The prevailing market environment in these geographies is discussed below:
USA: Generics market grew by 7% to US$ 34 Bn in 2009. Generics continued to
play an increasingly prominent role in the US healthcare market and
accounted for 72% of total US pharmaceutical market volume, reaching an all
time high in 2009. A major growth driver for generics is the upcoming
patent expiries for many blockbuster pharmaceutical products, which will
become open to generic competition.
According to the baseline forecast by IMS Health, the US generics market is
expected to deliver a CAGR in excess of 14% in value terms, over the period
2005 to 2010.
Europe: Generics market in Europe grew by 6.2% in value terms, up from 4.7%
growth reported in the last year, and accounted for 37.4% of the market in
volume terms, up from 36.4% in previous year.
The key markets in Western Europe were under pressure from price erosion.
While the volumes remained at a peak during the year, lower prices affected
growth. Generics market in Germany grew by 8%, in France and Spain by 7%,
while in the UK, growth was 5% during 2009. Romania, a key market in
Central Europe, was impacted due to healthcare reforms, and the market was
also under pressure from unprecedented currency fluctuation. Central,
Eastern & Southern Europe, continued to experience buoyant growth, led by a
higher per capita pharmaceutical expenditure, and an increasing utilization
of generic drugs, driven by the government's efforts to reduce healthcare
spend.
India: The Indian pharmaceutical market grew at a robust 16.9% in 2009 to
Rs. 401 Bn (ORG IMS MAT Dec 2009). Acute therapy dominated the market with
a value contribution of 71%. The acute segment grew 16.3% during the year
as against 18.7% growth witnessed in the chronic segment. Of the overall
market growth, existing products contributed 10.3%, New products (launched
in the last two years) contributed 5.7%, while price changes contributed
0.9%.
The Indian pharmaceutical sector continues to demonstrate strong growth
despite the global economic slowdown, due to inherent strength of the
Indian domestic market, economic growth, healthcare infrastructure
expansion, rising incidence of chronic diseases and increase in healthcare
access in the extra urban and rural markets. The potential of the Indian
pharmaceutical market is recognized by most of the major players, which is
manifested in diverse strategies being adopted by various organizations.
Such strategies include sales force and geographical expansion and new
products launches, etc. In order to gain market penetration, companies are
increasing their reach into the extra-urban and rural markets as well.
At present, USA, Europe and India are the three largest markets for
Ranbaxy.
OUTLOOK ON OPPORTUNITIES:
Outlook for the global generics industry continued to be positive and the
segment is expected to witness significant growth based on (a)
opportunities arising from the US$ 80 Bn drugs going off patent in the next
two years, (b) increasing healthcare burden in developed economies, leading
to higher genericization, (c) room for more genericization in some major
markets such as Japan, Australia and France, and (d) increasing healthcare
costs in developing economies, where generic pharmaceuticals generally have
an edge over the innovator companies, due to lower price structure and
better reach.
Ranbaxy, with ground operations in 46 countries, and presence in 125, is
among the top 10 generics pharmaceutical companies globally. With its
exclusive First-to-File (FTF) marketing opportunities in the United States,
including some of the world's highest selling drugs (e.g. Atorvastatin and
Esomeprazole), Ranbaxy has a balanced revenue-mix, with high growth
emerging markets contributing 56% to sales, and developed markets
contributing 44%, including revenue from the Active Pharmaceutical
Ingredients (API) business.
Collaborating with DS, our Holding Company, Ranbaxy has adopted a unique
Hybrid Business model. During the year, Ranbaxy began to leverage its
global marketing presence to market DS's innovator products. In this
context, Ranbaxy launched Olmesartan, an innovative product of DS in India.
Raloxifene, another DS innovation, was launched in Romania by Ranbaxy's
subsidiary, Terapia Ranbaxy. The Company plans to launch such products in
Africa as well as some other countries. A new business division was
established within Ranbaxy's subsidiary in Mexico, to market DS's innovator
products. Ranbaxy and DS aim to harness synergies in other diverse areas
such as R&D, manufacturing, distribution, IT, etc., as we continue to
engage together.
In order to consolidate its operations, optimize cost and improve
efficiency Ranbaxy undertook a change in the business model of its global
manufacturing operations, divesting its manufacturing facilities in China
and Vietnam. It also restructured its business operations in Europe.
USA: USA remains a key market for the Company, and will be the catalyst of
future revenue growth, on the back of a strong product pipeline. As on
December 31, 2009, the Company had 204 ANDAs filed with the USFDA, of which
138 have been approved. Market size of pipeline of the Company's pending
ANDAs, at innovator prices, is about US$ 45 Bn. Of these, the Company
believes that it has a Paragraph-IV / FTF status on 13 applications, with
sales of close to US$ 24 Bn, at current innovator prices.
The Company launched three products with exclusivity during the year, viz.,
Sumatriptan in February, Valacyclovir in November, and Oxcarbazepine
suspension in December.
Europe: Business in Europe remained under pressure during the year.
Competition among generic companies continued to increase, putting pressure
on prices. Romania, the Company's largest market in Europe, is witnessing a
liquidity crunch in the distribution channel, and also expected to undergo
multiple healthcare reforms, which is adversely affecting the market
growth. Despite the many challenges, Ranbaxy has maintained its leadership
position in generics+OTC segment in this market. The Company is
variabalizing its cost structure in Europe to counter the difficult market
conditions.
India: The Indian pharmaceutical market is expected to grow at 11-12% per
annum to reach US$ 20 Bn by 2015 and US$ 30Bn by 2020, which will place it
among the world's 10 largest pharmaceutical markets. The key catalysts for
this will be strong economic growth, increasing health awareness,
healthcare infrastructure expansion, rising incidence of chronic disease,
and increase in healthcare access in the extra urban & rural markets.
The emergence of an organized pharmaceutical retail segment and the fast
growing area of medical insurance are likely to be other important factors
that would positively impact the sector in the coming years.
OUTLOOK ON THREATS, RISKS AND CONCERNS:
The global generics business has risks associated with patent litigation,
regulatory issues and product liability, particularly in developed markets.
Innovator pharmaceutical companies also continuously develop ways to
enhance lifecycle of their patented drugs, to delay entry of alternate
generics. Further, emerging markets are becoming more competitive, with
entry of new players. Ranbaxy, as a global generic Company, faces all such
regulatory, compliance, and market risks.
Manufacturing of pharmaceutical products heavily regulated and controlled
by regulatory and government authorities across the world. Failure to fully
comply with such regulations, could lead to stringent actions from the
authorities/ government, revocation of drug approvals, failure or delay in
obtaining approvals for new products, product recalls of existing drugs
sold in the market, prohibition on the sale or import of non-complying
products, and criminal proceedings against non-complying manufacturers.
Regulators across the world, including the USFDA, have become stricter with
the pharmaceutical industry. Regulatory requirements and consequences for
non-compliance are also getting more severe.
The USFDA invoked its Application Integrity Policy (AIP) against Ranbaxy's
Poanta Sahib manufacturing facility in February 2009. Further, in December
2009, the Company received a warning letter from the USFDA for its liquid
manufacturing facility located in Gloversville, New York, USA, for certain
cGMP violations. The Company continues to co-operate fully with the
concerned authorities, towards a speedy resolution of the USFDA and
Department of Justice related issues. As regards the warning letter, the
Company has retained the services of a global consulting firm to provide
expertise and advice on issues cited by the USFDA. The above-mentioned
issues may have a negative impact on Company.
In the Indian pharmaceutical market, pricing for certain pharmaceutical
products is governed by the Drug Pricing Policy, through the Drug Price
Control Order, 1995 (DPCO). Ranbaxy has some pending legal cases, and may
face negative consequences on this account. Further, adverse changes in
DPCO / Drug Policy may affect the Company's performance.
Overseas business contributes 77% of Ranbaxy's total turnover. Sharp
movement in foreign exchange rates can, therefore, have significant impact
on the Company's financial results.
SEGMENT-WISE PERFORMANCE:
Ranbaxy recorded global consolidated sales of US$ 1,519 Mn in 2009, with
emerging and developed markets contributing 54% and 38% respectively, to
sales. Dosage form sales constituted 92% of global sales during the year,
balance being the API business. Overseas markets constituted 77% of the
total dosage form sales of the Company.
INTERNAL CONTROL SYSTEMS AND ADEQUACY:
With the objective of safeguarding the Company's assets and ensuring
financial compliance, there are documented and well established operating
procedures in the Company and its subsidiaries, in India and overseas. The
Internal Audit function at Ranbaxy reports directly to the CEO & MD and the
Audit Committee. The Internal Audit function is headed by a Vice President,
and the team comprises of well qualified, experienced professionals who
conduct regular audits across the Company's global operations. The matters
brought up by the Internal Audit team are periodically communicated to the
CEO & MD and the Audit Committee, in the form of Internal Audit reports /
comments.
On the financial operations, the Finance function of the Company is
adequately staffed with professionally qualified and experienced personnel.
FINANCIAL PERFORMANCE:
During the year, the Company recorded consolidated Global sales of
Rs.73,441 Mn (US$ 1,519 Mn). Operating margins improved significantly
primarily due to the launch of Valacyclovir (FTF) in USA, favourable forex
movement, and close management of costs during the year. Earnings before
tax were at Rs. 10,098 Mn (US$ 209 Mn), and Earnings after tax were at
Rs.3,107 Mn (US$ 64 Mn), representing 4% margin to sales.
HUMAN RESOURCES:
Human resources are the most valuable asset for the Company, and Ranbaxy
continues to seek, retain and enrich the best available talent. The Company
provides an environment which encourages initiative, innovative thinking,
and rewards performance. The Company ensures training and development of
its personnel through succession planning, job rotation, on-the-job
training, and various training programs and workshops.
The total number of employees of the Company and its subsidiaries as on
December 31, 2009 stood at 12,995.
CAUTIONARY STATEMENT:
Statements in the 'Management Discussion and Analysis' describing the
Company's objectives, estimates, expectations or projections may be
'forward looking statements' within the meaning of applicable laws and
regulations. Actual results could differ materially from those expressed or
implied. Important factors that could make a difference to the Company's
operations, include Government regulations, patent laws, tax regimes,
economic developments within India and countries in which the Company
conducts business, litigation and other allied factors.
Note: Market size and growth rate for 2009 are based on IMS MAT Sep 2009
data unless otherwise indicated.
ANNEXURE B
Information regarding the Employees' Stock Option Scheme
(As on December 31, 2009)
Details Nos.
1. Total No. of Options in force at the beginning
of the year 7,272,849
2. Options granted in the year 2009 1,472,725
3. No. of Options vested during the year 1,257,680
4. No. of Options exercised during the year 36,825
5. No. of shares arising as a result of exercise
of options during the year (including additional
shares allotted on account of bonus shares as
explained in Note 2 below) 47,605
6. No. of Options lapsed and forfeited during the
year 1,295,733
7. Variance in terms of options N.A.
8. Money realized by exercise of options during
the year Rs. 11,490,128
9. Total No. of Options in force at the end of
the year 7,413,016
Notes :
1. The Grant/ Exercise and number of Stock Options outstanding as on June
30, 2005, have been proportionately adjusted in view of the sub-division of
equity shares of the Company from the face value of Rs. 10 each into 2
equity shares of Rs. 5 each.
2. Options granted upto October 3, 2002, are entitled for additional shares
on account of bonus shares in the ratio of 3 for 5.
Pricing formula: Closing price of the Equity Shares of the Company prior to
the date of meeting of the Compensation Committee (CC) in which stock
options are granted on the stock exchange on which the shares of the
Company are listed. The closing price of the shares of the Company at the
National Stock Exchange of India Limited on January 20, 2009 was Rs. 215.15
per share. Accordingly, exercise price of the options granted by the CC at
the meeting held on January 21, 2009 was fixed at Rs. 216 per share of Rs.5
each.
(i) Options granted in the year 2009 to senior managerial personnel*:
Name Designation (Present) No. of
Options
granted
Mr. Atul Sobti CEO & Managing Director 50,000
Mr. Arun Sawhney President - Global
Pharmaceuticals Business 15,000
Mr. Omesh Sethi President & Chief
Financial Officer 10,000
Dr. Sudershan K. Arora President - Research &
Development 17,500
Mr. Dipak Chattraj President - Corporate
Development 10,000
Mr. Ramesh L. Adige President - Corporate
Affairs & Global Corporate
Communications 15,000
Dr. Pradip Kumar Bhatnagar Senior Vice President -
New Drug Discovery Research 12,500
Mr. Sanjeev I. Dani Senior Vice President &
Regional Director - Asia,
CIS & Africa 12,500
Mr. Satish Kumar Chawla Vice President - Global
Internal Audit 10,000
Mr. Ranjan Chakravarti Vice President - Global
Therapy and Alliance
Management 7,500
Dr. T.G. Chandrashekhar Vice President -Quality 10,000
Mr. K. Venkatachalam Senior Vice President &
Regional Director - North
America & LATAM 15,000
Mr. Debashish Dasgupta Vice President & Regional
Director - Europe 5,000
* Excludes the Senior Managerial personnel who ceased to be in employment
with the Company.
(ii) Employees who have
been granted 5% of more : Nil
of the options granted
during the year
(iii) Employees who have
been granted options : Nil
during any one year equal
to or exceeding 1% of the
issued capital of the
Company at the time of grant
(iv) Diluted earnings per
share (EPS) : Rs. 10.74
(v) (a) Method of calculation
of employee : The Company has calculated the
employee compensation cost
compensation cost using the
Intrinsic value of the stock options.
(b) Difference between the
employee compensation : Rs. 105.99 Mn
cost so computed at (a)
above and the employee
compensation cost that
shall have been recognized
if it had used the fair value
of the options
(c) The impact of this
employee compensation : Rs. 105.99 Mn
difference on profits and : Profit/(Loss) : Rs. 5,719.84 Mn
on EPS of the Company after tax
Less: additional
employee
compensation
cost based on
fair value : Rs. 105.99 Mn
Adjusted PAT : Rs. 5,613.85 Mn
Adjusted EPS
(diluted) : Rs. 10.51
(vi) Weighted-average exercise price and fair value of Stock Options
granted : (Post split adjusted price)
Stock Options Weighted average Weighted average Closing market price
granted on exercise price Fair value at NSE on the date of
(in Rs.) (in Rs.) grant (in Rs.)
12.01.2001 336.50 145.00 324.15
03.12.2001 297.50 188.50 369.48
01.04.2002 372.50 226.00 449.48
07.02.2003 283.50 132.50 317.45
22.01.2004 496.00 212.50 503.10
17.01.2005 538.50 215.68 534.33
17.01.2006 392.00 194.07 391.15
17.01.2007 430.00 232.57 429.65
16.01.2008 391.00 107.06 390.75
11.06.2008 561.00 172.89 560.75
19.12.2008 219.00 63.31 218.60
21.01.2009 216.00 92.97 215.15
(vii) Description of the : The Black Scholes option pricing model was
method and significant developed for estimating fair value of
assumptions used during traded options that have no vesting
the year to estimate the restrictions and are fully transferable.
fair value of the options, Since Option pricing models require use of
including the following substantive assumptions, changes therein
weighted average information can materially affect fair value of
Options. The option pricing models do not
necessarily provide a reliable measure of
fair value of options.
The main assumptions used in the Black-Scholes option pricing model during
the year were as follows :
Particulars Options
granted on
21.01.2009
Dividend yield 1.49%
Expected life of options from the date(s) of grant 6.5 years
Risk free interest rate 6.22%
Expected volatility 38.60%
ANNEXURE C
Information pursuant to Companies (Disclosure of Particulars in Report of
Board of Directors) Rules, 1988 forming part of the Report of the Directors
1. CONSERVATION OF ENERGY AND ITS IMPACT:
Measures for Conservation of Energy Impact resulting
into saving
(in Rs. Million)
Power Factor maintained UNITY & Load Factor maintained
above 50% concession for Load Factor received 19.80
Reduction of steam high pressure header from 8.2 to
7.4 Kg / CM2 0.02
KGK chiller's replaced by trane chiller and Brine
facility modified from central generation to user areas 7.70
Combining the Cooling tower Pump Discharge lines for
Utilities & 3X60KL Fermentation Plant thereby Running
only one 110 KW pump instead of 2 Nos. being run
separately for 2 different streams 6.60
55KW Nitrogen Plant Air compressor is stopped by
looping the Instrument Air compressor supply to inlet
of Nitrogen plant resulting in substantial saving as
well as optimum utilization of Instrument Air Compressor 4.84
Re-engineering of Brine system in old utility.
Re-engineering has improved flow rate resulting in
efficiency improvement. This has resulted in stoppage of
one compressor 3.62
Rebate in power tariff by maintaining unity power factor
through automatic and manual controls. 3.60
Air flow optimization in Air Washers and VAHUs. Two nos.
inefficient AHUs and Air Washer replaced in MP-01 2.91
500 KVA Diesel Generation installed and running during
weekly off days and Peak load restriction hours instead
of running of 1500KVA Generator earlier 2.50
Chilled Water facility modifications from central
generation to users areas, energy saving of 90KW 2.10
5 KW (35CFM) Air compressor is installed and running
for purified water plant during 2nd and 3rd shifts
instead of 97 KW Air compressors 2.00
Integration of two cooling water & Chilled water
headers of Mohali-3 & Mohali-2 1.26
Power saving by auto switching (Motion Sensor). Running
time of light fixtures reduced from 24 hours to 10 hours. 1.11
Replacement of steam traps and recovery of Hot condensate
back to boiler house 1.0
Looped the raw water header with the process water line
thereby using Bore well pressure for Process water
circulation , this stopped 7.5 KW pump operation for
process water, this also has led to substantial energy
saving 0.66
Optimization of pump head in New Utility Cooling tower. 0.64
Replacement of Fan Type cooling towers with Jet type
cooling towers 0.41
Increase in condensate recovery from 20% to 40% from 7011
Tons of steam production. The additional automatic
condensate recovery systems installed in two plants 0.30
Replacement of old lamp type indicators (Each 5 watt)
with LED type indicators(0.8 watt) total number 550 0.10
2. RESEARCH & DEVELOPMENT:
a) Specific areas in which R&D is carried out:
- Develop technology for Active Pharmaceutical Ingredients (APIs),
conventional & value added innovative dosage forms - complying with
international quality & regulatory norms
- Develop 'Platform Technologies' and 'Products' in the area of Novel Drug
Delivery Systems
- Discovery and Development of new drug molecules in select areas:
Infectious Diseases, Metabolic Diseases, Inflammatory/Respiratory Diseases
and Oncology
- GLP/cGCP complying Bioavailability/Bioequivalence, Toxicology and
Clinical Studies (Phase - I, II & III)
- Innovation in packaging for improved patient convenience & compliance
- Up-gradation of existing technologies / products on ongoing basis
b) Benefits derived as result of R&D activities
- Technology to manufacture APIs and Dosage Forms
- Oral Controlled Release Dosage Forms leading to better patient
convenience and compliance
- Improved productivity / process efficiencies
- Internationally competitive prices and product quality
- Safe and environment friendly processes
- Generation of Intellectual wealth for the Company in key potential
markets
- Grant of process patents for Active Pharmaceutical Ingredients (APIs) as
well as dosage forms (both conventional & novel drug delivery systems)
- Product patents in the areas of drug discovery research
- Self reliance and import substitution for conservation of Foreign
Exchange
- Foreign exchange earnings / savings
- Speed to marketplace
- Enhanced business through Licensing arrangements and strategic alliances
- Enhanced Global presence / visibility
c) Future plan of action
- Continue augmenting R&D capabilities & productivity through technological
innovations, use of modern scientific and technological techniques,
training and development, benchmarking and global networking
- Greater thrust in the areas of Novel Drug Delivery Systems
- Continue developing innovative, commercially viable process know-how for
both Active Pharmaceutical Ingredients (APIs) and dosage forms
- Continue strengthening the Clinical Research infrastructure and
capabilities complying international GLP/ cGCP norms
- Continue improvements in packaging for pharmaceuticals to ensure shelf-
life/stability, quality and, better patient convenience and compliance
- Enhance national and international research networking and strategic
alliances
d) Expenditure on R&D Rs. Million
Year ended Year ended
December 31, December 31,
2009 2008
- Capital 221.98 558.28
- Revenue 4,721.84 4,155.46
- Total 4,943.82 4,713.74
- % to turnover 10.90% 10.86%
3. TECHNOLOGY, ABSORPTION, ADAPTATION AND INNOVATION:
a) Efforts in brief, made towards technology absorption and innovation
- As per 2(a) above
b) Benefit derived as a result of the above efforts, e.g. product
improvement, cost reduction, product development.
- As per 2(b) above
Future course of action
a) To continue developing innovative and commercially viable process know-
how for APIs and Dosage Forms (Conventional and Noval Drug Delivery System)
b) Information in case of imported technology (imports during the last five
years)
- Not applicable
4. FOREIGN EXCHANGE EARNINGS AND OUTGO:
Activities relating to exports, initatives taken to increase exports;
development of new export markets of products and export plans -
- Overseas sales (excluding sales to Nepal) were Rs 28,258.24 Mn for the
financial year December 31, 2009.
- Drug Master Files (DMFs) for API were filed with the regulatory
authorities in several markets.
- Continued to receive income by way of royalty, technical and management
service fee and dividend from overseas subsidiaries / affiliates.
- Initiatives were taken for development of new export markets. These
include setting up a new division to co-market Daiichi Sankyo's innovator
products.
- Also launched differentiated branded products of Originator in Romania
through Terapia Ranbaxy
- Japan export market was also tapped for API.
- In the year under review the Company launched Dosage Formulations of
Valacyclovir,Oxycodone & Sumatreptan in the International markets.
- Ranbaxy plans to further leverage its association with Daiichi Sankyo
(DS), its Holding Company, to launch DS's products in other export markets
including 6 African countries for which plans are already underway.
Rs. Million
Year ended Year ended
December 31, December 31,
2009 2008
Earnings 31,364.51 28,537.83
Outgo 13,100.41 14,403.56
FORM - A
Form for disclosure of particulars with respect to conservation of energy:
Current Year Previous Year
2009 2008
A. Electricity and Fuel Consumption
1. Electricity
(a) Purchased Units (KWH) 132,372,169 127,981,552
Total Amount (Rs. Million) 561.87 521.70
Rate/Unit (Rs.) Rs. 4.24 Rs. 4.08
(b) Own Generation
i) Through Diesel Generator Unit (KWH) 12,308,322 8,070,600
Unit per Ltr. of Diesel Oil 3.48 3.61
Cost/Unit Rs. 8.29 Rs. 8.94
ii) Through Steam Turbine/Generator Not Applicable Not Applicable
2. Coal (Specify quality and where used) Not Applicable Not Applicable
3. Furnace Oil Qty. (K. Ltrs.) 16,364 16,188
Total Amount (Rs Million) 378.90 476.62
Average Rate (Rs. per Ltr.) Rs. 23.15 Rs. 29.44
4. Others/internal generation Not Applicable Not Applicable
B. Consumption per unit of production
Units Standards Current Year Previous Year
(if any)
Electricity
Active
Pharmaceutical
Ingredients (kwh per kg) No specific 91.36 70.55
Dosage Forms (kwh per standards - 105.78 91.73
1000 packs) consumption
per unit
depends on
product mix
Furnace Oil
Active
Pharmaceutical
Ingredients (Ltrs per Kg) 11.05 8.95
Dosage Forms K.Ltrs per 0.01 0.01
1000 packs)
Coal Not Applicable Not Applicable
Others Not Applicable Not Applicable