Live Chart 18

Strong Buy : Balrampur Chini

The Sensex today recorded a fresh 2009 high on the back of strong earnings, positive global cues and renewed buying interest at the start of the August derivatives series.

The BSE index today opened with a positive gap of 61 points at 15,449. The index surged thereafter to the calendar year's high of 15,733 - up 345 points. Towards the end of the day, the index slipped for a brief while but managed to recover sharply.

The Sensex finally ended the day with a gain of 282 points (2%) at 15,670.

The BSE Oil & Gas and FMCG indices gained 3% each to 2,738 and 9,480, respectively.

The NSE Nifty, meanwhile, ended at 4,636, up 65 points. Ealier in the day the index touched a high of 4,670 - up 99 points.

US markets had closed with big gains yesterday. Asian markets today had closed at their 11-month high.

This has taken the Sensex up 291 points (2%) this week. The Nifty has added 68 points (1.5%) at the same time.

The market breadth today was positive. Out of 2,801 stocks traded, 1,401 advanced while 1,299 declined.

INDEX MOVERS...

Hindalco and Tata Motors have surged 6.5% each to Rs 100 and Rs 422, respectively. ONGC has rallied 6% to Rs 1,165.

SBI has gained 5% at Rs 1,814. Hindustan Unilever added 3% to Rs 291.

Reliance, ITC, Sterlite moved up 3% each. HDFC Bank, HDFC, Infosys, Sun Pharma, Tata Steel, Reliance Infrastructure and BHEL also moved up 1-3% each.

Among the Nifty stocks, Nalco surged 5% to Rs 306. Ambuja Cements and Idea Cellular added 4% each to Rs 109 and Rs 79, respectively.

ABB, Cairn India and Siemens also moved up.

...AND THE SHAKERS

Bharti Airtel traded in red through teh day and finally ended at Rs 411, down 3%. Reliance Communications and Hero Honda dropped 2% each to Rs 276 and Rs 1,606, respectively.

DLF also slipped 1% to Rs 396.

In Nifty, Jindal Steel, BPCL, HCL Technologies, Cipla and PowerGrid Corporation dropped 1-3% each.

VALUE & VOLUME TOPPERS...

Reliance topped the combined value chart with a turnover of Rs 875.43 crore, followed SBI (Rs 864.31 crore), DLF (Rs 776.88 crore), Tata Steel (Rs 752.48 crore) and Suzlon (Rs 660.45 crore).

The combined volume chart was led by Unitech with trades of 81.45 million shares, followed by Suzlon (65.09 million), Mahindra Satyam (52.11 million), Ispat Industries (50.2 million) and IFCI (42.47 million).

Bharti Airtel and MTN Group are likely to update the market on Monday on exclusive talks aimed at merging their operations, two sources with direct knowledge of the development said.

The exclusive talks over the deal, which would see each firm pay cash and stock for a stake in the other, were due to lapse on Friday. Last week, sources told Reuters the talks were likely to be extended by at least two to three weeks.

MTN's second-largest investor also said earlier this week the South African firm was likely to reach an agreement with Bharti by the end of August.

"Probably it will be issued on Monday," said one source, of a possible company statement.

"You won't probably get anything until Monday," said the other source.

Both the sources declined to be named due to the sensitivity of the matter.

A spokeswoman for MTN declined to comment.

A spokeswoman for Bharti Airtel, when asked when the company would give an update on its talks with MTN, said, "when I can say some something to you, I will issue a statement."

Shares of three state-run oil marketing companies fell by 0.05% to 2.64% on BSE after crude oil prices jumped above $67 a barrel today, 31 July 2009, extending a big rally in the previous day.

Bhushan Steel rose 4.19% to Rs 779 at 11:59 IST after net profit surged 29.5% to Rs 171.87 crore on a 1.1% decline in sales to Rs 1304.70 crore in Q1 June 2009 over Q1 June 2008.

The result was announced during trading hours yesterday, 30 July 2009, when the stock had ended 4.64% higher at Rs 747.70.

Meanwhile, the BSE Sensex was 316.51 points, or 2.06%, to 15704.47.

On BSE, 1.39 lakh shares were traded in the counter as against an average daily volume of 2.78 lakh shares in the past one quarter.

The stock hit a high of Rs 803.70 and a low of Rs 760 so far during the day. The stock had hit a 52-week high of Rs 974 on 1 August 2008 and a 52-week low of Rs 260.05 on 9 January 2009.

The stock had outperformed the market over the past one month till 30 July 2009, rising 13.80% as compared to the Sensex's 6.17% rise. It had also outperformed the market in the past one quarter, soaring 79.95% as against the Sensex rise of 34.94%.

The mid-cap steel maker has an equity capital of Rs 42.47 crore. Face value per share is Rs 10.

The current price of Rs 779 discounts the company's Q1 June 2009 annualised EPS of Rs 161.87, by a PE multiple of 4.81.

The decent rise in net profit was backed by a steep drop in raw material prices. Bhushan Steel director (finance) Nitin Johari was quoted by the media as saying the company managed to book hot rolled coils (HRCs), a key input in cold-rolled steel making, before prices started firming up. It helped the firm in controlling input costs.

The price of HRC have dropped almost 40% in the last one year. He said the demand for steel is growing across sectors and going forward, the company may look at increasing prices marginally.

Bhushan Steel is a mid-sized secondary steel producer, which makes products largely for automobile and consumer durable sectors. It witnessed 33% rise in production in Q1 June 2009 over Q1 June 2008

Delhi-based Bhushan Steel has also increased the production capacity of its integrated steel plant based in Orissa five times to 2.5 million tonnes. The plant, which mainly produces HRC, will operate at the enhanced capacity from December onwards this year.

The firm is reportedly eyeing around 15% growth in revenues to reach Rs 6,000 crore this fiscal as against Rs 5,400 crore in 2008-09.

Bhushan Steel makes cold rolled, galvanized and special steel and strips. It also produces angles and wire rods. The company's plants are located in Uttar Pradesh, Maharashtra and Orissa.

Metal shares in demand as metal prices shine on LME (31/7/2009)
Eleven metal shares rose 1% to 6.55% on BSE after LMEX, a gauge of six metals traded on the London Metal Exchange, advanced 4% to 2,686.70 on Thursday, 30 July 2009.

Buy Suzlon Energy only if it crosses Rs 105, says Hardik Jain, technical analyst. The stock is currently trading at Rs 102.35, up 3.2% on the BSE.

DLF rose 2.66% to Rs 412.80 at 9:58 IST as net profit surged 236.23% to Rs 100.40 crore on a 652.69% spurt in sales to Rs 417.97 crore in Q1 June 2009 over Q4 March 2009.

The Intercontinental Exchange (ICE) said on Wednesday it rarely sees participants in Europe's main oil market with excessive positions and it has no plans to publish figures on short and long positions on its contracts.(Reuter)

Buy Hero Honda on dips with targets of Rs 2000 and then 2500, says Prasad Kushe, technical analyst. Keep stop loss of Rs 1400 or 1500, he adds.

Buy Hero Honda on dips, says Ashish Kapur of Invest Shoppe. It is a stock one must have in their portfolio, he adds. The stock is currently trading at Rs 1633.

"Corporation Bank has reported a healthy set of numbers for Q1FY2010. The performance is well ahead of our estimates (on both top line and bottom line fronts) and was led by robust treasury gains, sequentially stable margins and a healthy business growth during the quarter. We maintain our Buy recommendation on the stock," says Sharekhan's research report.

SBI has announced its Q1 results with net profit at Rs 2330 crore versus Rs 1640 crore (YOY). NII is at Rs 5026 crore versus RS 4818 crore, it adds. The stock is currently trading at Rs 1696, up 2.4% on the BSE

Pricing in next few years' growth

Wants to factor in the perfect execution of its plans to commission 6600MW in various phases by April 2012


CM RATING 45/100
Adani Power (APL), part of Adani Group and subsidiary of Adani Enterprises (AEL), is into power generation. The company is setting up power generation project both on its own and through special-purpose-vehicle (SPV) subsidiaries. Currently, it is gradually building two power generation projects with an aggregate capacity of 6,600 MW at an estimated cost of Rs 28369 crore at Mundra in Gujarat and Tiroda in Maharasthra. Post issue, the stake of AEL will be 70.25% compared with pre-issue holding of 81.53%.

The 4,620-MW Mundra Power Project (MPP) is to come up in four phases. It will be shown in the books of APL. However, the 1,980-MW Tiroda Power Project (TPP) is to be constructed by Adani Power Maharashtra (APML), a SPV and subsidiary of the company. Both the projects are to be fully completed by April 2012. The first and second unit of MPP involves setting up of four units of 330 MW each. The first 330-MW unit of phase I was recently synchronized with the grid. The remaining three units are expected to start operations shortly as phases I and II are scheduled to be fully commissioned by February 2010. Though the first two phases of MPP comprise smaller units with sub-critical parameters, phases III and IV are planned as supercritical units. While the 2X 660-MW phase III is to be fully completed by June 2011, the 3X660-MW phase IV is to be fully completed by April 2012. Earlier planned as a sector-specific special economic zone(SEZ), the MPP was later combined with the two-multi product SEZs developed by group company Mundra Port & SEZ (MPSEZL). The company has been notified as co-developer for the combined SEZ at Mundra, with MPSEZL as the developer.

The first phase of the TPP envisages setting up of two units of 660 MW each. The third 660-MW unit is being set up in the second phase. The Tiroda Power Project is to be fully completed by April 2012.

APL is to source its coal requirement for the MPP from group company AEL, one of the largest traders of coal in India. PT Adani Global, a wholly owned subsidiary of AEL, has entered into agreements to exclusively mine coal in Bunyu Island, Indonesia. For MPP, AEL proposes to procure coal from these mines in Indonesia. Under the coal supply agreement, AEL will supply 4.60 million tonnes of the requirement of 3.68 million tonnes for MPP's phase I and II, 4.04 million tones of the requirement of 4.06 million tonnes for MPP's phase III and 6.50 million tonnes of the requirement of 5.81 million tonnes for MPP's phase IV, with an average Gross Calofic Value (GCV) of 5,200 kilo calories per kg per annum for 15 years from the date of commencement of operation of the power project at USD 36 per tonne Cost, Insurance & Freight (cif) Mundra. In addition, the company received a letter from Mahanadi Coalfields (MCL) on 25 June 2009, provisionally agreeing to supply approximately 6.4 million tones of grade F coal to MPP's phase IV. However, as the TPP is not a coastal project, it is to be fired on domestic coal. The ministry of coal has allotted two coal blocks to the company so as to meet coal requirement of up to 1,000 MW of power generation. For the balance requirement, the SPV for TPP (i.e., APML) received letters from South Eastern Coalfields and Western Coalfields on 6 June 2009 and 1 June 2009 to provisionally supply approximately 2.5 million tonnes of grade F coal and 2.2 million tonnes of grade E coal for the Tiroda Power Project, respectively. The coal quantity to be supplied is conditional on APL achieving certain milestones over the next 24 months and signing of fuel supply agreements.

APL is to sell electricity from the proposed projects under a combination of long-term power purchase agreements (PPAs) and on merchant basis. The company has signed two long-term PPAs with Gujarat Urja Vikas Nigam (GUVNL), with the first being for the supply of 1,000 MW of power produced from the MPP's phase I and II, and the second for the supply of 1,000 MW of power produced from the MPP's phase III. Similarly, it has entered into two off-take agreements with Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam for the sale of 1,424-MW power produced from MPP's phase IV. Another off-take arrangement is with Maharashtra State Electricity Distribution Company (MSEDCL) for supply of 1,320-MW power generated from the TPP. The surplus power in excess to off-take agreements will be sold on merchant basis and an agreement has been entered with AEL for selling up to 221 MW of surplus power from MPP's phase III on merchant basis. In addition, it may supply surplus power to various units within the MPSEZL.

APL is tapping the capital market to part finance the construction and development of the 1,980- MW MPP's phase IV to fund the equity requirement of subsidiary Adani Power Maharashtra that is setting up a 1,980-MW power plant at Tiroda, Maharashtra, and for general corporate purpose.

Strengths

Synchronized the first of the four units of MPP's (4X330 MW) phases I and II on 23 May 2009. The balance three units of MPP phases I and II are scheduled to be fully operational by February 2010.

Off-take risk mitigated as 72% of proposed generation capacity of its two power projects tied up under long term PPAs with state utilities. The balance surplus power is to be sold on merchant basis.

Proposes to sell about 1,856 MW, or 28%,of generation capacity under execution on merchant basis. After all the projects get commissioned, even at a plant load factor (PLF) of 85%, there will be a surplus of little over 850 MW. Given the current demand supply gap in the country, especially in the western region of the country, it is not difficult to sell this surplus at a higher price than the current PPAs. Agreement has been signed with AEL for selling up to 221 MW of surplus power from MPP's phase III on merchant basis. The balance might be sold to various units in MPSEZL.

Secured fuel linkage/ supply agreement for all phase of both MPP and TPP. Similarly, has made financial closure for all except TPP's phase II.

Being a co-developer of MPSEZL, entitled for tax benefits such as tax exemption under Section 80IA of the Income Tax Act, 1961, and complete exemption from minimum alternate tax (MAT) for MPP.

Except MPP phases I and II, all other units are based on supercritical technology and are eligible for clean development mechanism benefits. So far, has received host-country approval from the ministry of external affairs for MPP phase III and TPP's phase I.

Weaknesses

Core equipment of all power plants under execution is of Chinese origin, except MPP phase II, for which the core Boiler, Turbine and Generator (BTG) order has been placed with Kowa Company of Japan. Given the poor performance track record of Chinese power plant equipment in the country, the efficient and smooth operation of the power plant could be a cause for concern. If the power plant's availability falls below 75%, penalty has be paid under PPA. Also, power plants with Chinese equipment work better with imported coal compared to domestic coal. But the TPP is based on domestic coal. Hence, its operating and maintenance could turn out to be a cause for worry.

Lack of experience in executing large power projects is a major concern. While the fuel cost is a pass through, the fixed cost (captive cost) is not pass through in a competitive bid tariff system. Hence, unless capital cost is controlled and the project is executed well in time and within budget, profit will be impacted.

The New Indonesian Mineral and Coal Mining Law, approved by the Indonesian parliament in December 208 and signed by president on 12 January 2009, requires existing contracts to comply with the new mining law within one year with suitable modification even while allowing them to be valid until their expiry. The law is still at the drafting stage, awaiting presidential approval. Details are sketchy, and conditions such as specified percentage of coal mined should be set aside for domestic use could make the supply of coal for MPP uncertain. Though AEL could source from alternate sources, whether it will succeed in sourcing at US$ 36 per tonne is doubtful.

The TPP is yet to get the mega power project status and also environmental clearance.

Ability to sell surplus power, especially that generated by MPP's phases I and II, on merchant basis is subject to the right of first refusal by GUVNL, which has a firm off-take agreement for 1,000 MW of the total generation capacity of 1,320 MW of MPP's phases I and II. Under the firm off-take agreement, GUVNL has a right of first refusal on any additional or surplus capacity from the power project, provided the price for such power is equal to or less than the contracted price in the PPA with GUVNL. The right of first refusal will also not apply if (a) such surplus capacity is for own consumption or consumption by an Adani group company, or (b) the surplus capacity is contracted to be sold on a long-term basis to a government-controlled distribution licensee or to a government-controlled entity responsible for supplying bulk power to distribution licensees in Gujarat. This right of first refusal provided to GUVNL even prevents selling of surplus power to the units at MPSEZL so as to take advantage of better market price due to short-term demand-supply gap in the market.

Valuation

Currently, APL has no operational power plant except the modest 330-MW unit I of MPP's phase I, synchronized in May 2009. All others are either under execution or on the drawing board. This Unit I of MPP is expected to go on stream in July 2009, and the revenue generation is expected beyond July 2009. Given this background, the company has priced its offer in a price band of Rs 90 to Rs 100.

At the upper price band, APL will have a market capitalization of Rs 21800.35 crore compared with the current market capitalization of Rs 167053 and Rs 39475 crore of NTPC and Reliance Power (RPL). The market cap works out to Rs 3.30 crore per MW at the asking price of Rs 100. This is close to the level of NTPC, which commands a per MW valuation of Rs 3.35 crore with its proven track record in execution as well as operation of power plants. On the other hand, RPL, a player comparable with APL with all power plants under execution or on the drawing board, commands a valuation of Rs 1.23 crore per MW of project under execution. One should have experienced by now how market sensitive RPL, Tata Power and other power generation stocks with lofty plans are. In comparison, NTPC remains solid even in any big market gyrations. Till APL's plans are properly executed over the next few years, the stock will end up tracking the market and company-specific news.

The inflation figure for week ended July 18 has been announced at -1.54% versus the earlier figure of -1.17% for week ended July 11.

At 11 am, the Instanex FII Index was up 0.27% at 321.19 (+0.10% at 10 am) and the Instanex DII 15 Portfolio was down 0.15% (-0.11% at 10 am). Nifty was down 0.14% (-0.28% at 10 am) and Sensex was down just 0.05% (-0.16% at 10 am). The other Instanex Owner Indexes were also down – the Instanex Promoter 15 portfolio was down 0.17% (-0.07% at 10 am), the Instanex Top 15 portfolio was down 0.09% (-0.08% at 10 am) and the Instanex Retail 15 portfolio was down 0.06% (-0.09% at 10 am). Asian markets were mixed – Nikkei 225 was up 0.29% (-0.06% at 10 am), SET Composite was down 0.44% (-0.85% at 10 am) and Taiwan Weighted closed 0.84% lower (-1.14% at 10 am).

Of the 15 components of the Instanex FII Index eight were down and seven were up. The main losers were Sun Pharma (-2.28%; weight 1.49%), ITC (-1.03%; weight 4.06%) and ONGC (-0.99%; weight 4.30%) and the main gainers were HUL (+2.16%; weight 2.92%) and HDFC (+1.91%; weight 13.29%).

Sobha Developers declined 1.64% on BSE, after net profit plunged 74.9% to Rs 12.70 crore in Q1 June 2009 over Q1 June 2008

Tulip Telecom galloped 3.12% to Rs 975 ,after net profit rose 63.2% to Rs 75.07 crore on a 33.2% increase in sales to Rs 442.92 crore in Q1 June 2009 over Q1 June 2008.

The government counsel has said the government supported an early hearing of RIL-RNRL case. The matter will come up for mentioning in the Supreme Court today, Mohan Parasaran, the Additional Solicitor General and the lead attorney on behalf of the government in this case told CNBC-TV18.
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In a late night response to CNBC-TV18, Anil Ambani said that he welcomed the government's move to give RNRL an early hearing, and that this move would help quicken the resolution of the gas dispute. “We are not claiming any rights to ownership of the KG basin gas fields. Our claims to gas supply are based entirely on RIL’s lawful ownership and entitlement of a participating share in gas production under the PSC, which it is free to sell.”, he said
He also said that he hoped RIL would not engage in dilatory tactics. Anil added that resolving this dispute was necessary for creating new power capacities.
The Ambani brothers' gas dispute echoed in the Lok Sabha yesterday with some members demanding the resignation of Petroleum Minister Murli Deora, forcing the speaker to adjourn proceedings. The prime minister has expressed concern over Anil Ambani's allegations about the oil ministry.
Infact, the man in the line of fire, Murli Deora is likely to make a statement in on the RIL-RNRL gas row in the Lok Ssabha on Monday and has declined to comment before that.
Murli Deora, Petroleum Minister said, “The matter is in court right now, it is sub-judiced. So I cannot comment on it now.”
Meanwhile, there was a bit of dilly-dallying today on the part of the government on whether it will amend the special leave petition filed in the supreme court.

Buy DLF with target of Rs 450, says Rahul Mohinder, technical analyst, on CNBC TV18. Keep stop loss of Rs 392, he adds. The stock is currently trading at Rs 392.40, down 1.4% on the BSE.

Great Offshore rose 4.11% to Rs 455 at 10:58 IST after 16.65 lakh shares, or 4.48% equity, changed hands in two block deals on the BSE and the NSE

Religare Enterprises rose 3.04% to Rs 402 at 10:11 IST after reporting a net profit of Rs 3.17 crore in Q1 June 2009 as against a net loss of Rs 8.42 crore in Q1 June 2008.

Sell Tata Tea with intra-day target of Rs 775, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 811, he adds. The stock is currently trading at Rs 795.10, down 0.6% on the BSE.

Initiate long positions only if the Nifty sustains 4575 level with target of 4600-4620, says Vijay Bhambwani, technical analyst, on CNBC TV18, in a market opening call. If the Nifty goes below 4515 then he advises booking profits.

Go short if the Nifty trades below 4500, says Sudarshan Sukhani, technical analyst, on CNBC TV18, in a market opening call. He advises going long above 4600 which, he adds, will see the Nifty rally to 4700 and higher.

Buy Punj Lloyd with a target of Rs 270, says Rajat Bose, technical analyst, on CNBC TV18. The stock is currently trading at Rs 240, down 1.38% on the BSE.

The market is likely to be volatile with F&O expiry on Thursday, says Gaurang Shah of Geojit BNP Paribas, on Zee Business. Till Nifty is able to cross 4620 decisively it will be ranged, he says. This a buy on dips market, as once 4630 is crossed, then market is headed higher and may return to pre-budget levels of 4700 soon

RIL has dishonoured the gas supply contract and shown dishonourable conduct, says Anil Ambani chairman, ADAG Group, at the RNRL AGM, reports NDTV Profit. The oil ministry's performance is biased towards RIL, he says. RIL's stand hurting both NTPC and RNRL, he adds. RNRL is currently trading at Rs 83, up 2.5% on the BSE.

Buying in realty and select auto shares helped key benchmark indices regain positive zone in afternoon trade after the Reserve Bank of India kept key policy rates unchanged at their historically lowest levels at a quarterly monetary policy review today, 28 July 2009. The BSE 30-share Sensex was up 13.33 points or 0.09%, up 148.36 points from the day's low and off 65.47 points from the day's high. European markets opened on a firm note and most Asian stocks were in green today, 28 July 2009.

The market breadth, indicating the overall health of the market, was strong. The BSE Mid-Cap and BSE Small-Cap indices outperforming the Sensex.

The Securities and Exchange Board of India (Sebi) on Monday, 27 July 2009 introduced some new norms for the comprehensive risk management system for the equity markets in the cash segment, in a move which would now reduce the margin burden on brokers. Sebi said that in case of a buy transaction in cash market, value at risk (VaR) margins, extreme loss margins and mark to market losses together will not exceed the purchase value of the transaction.

The market was volatile. After a firm start triggered by government sops to stimulate the economy announced after trading hours on Monday, 27 July 2009, the market soon slipped into the red. It cut losses after the RBI's policy announcement at about 11:15 IST. However the intraday recovery proved short lived. The market weakened again. The market bounced back one again in afternoon trade as the RBI kept policy rates at record low levels.

The RBI has kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%. The repo rate, at which the central bank lends cash to banks, stays at 4.75%, and the reverse repo rate, at which it absorbs surplus cash from the banking system, stays at 3.25%. Both these rates are at record low level. The statutory liquidity ratio (SLR) was also kept unchanged at 24%.

The RBI also kept the cash reserve ratio (CRR), the amount of funds banks have to keep on deposit with it, unchanged at 5%. The RBI said the deposit growth is seen at 19% adding that there is scope for the banks to cut interest rates. The GDP is expected to grow at 6% in FY 2010, with an upward bias, the central bank said

RBI said it will maintain an accommodative monetary stance until robust signs of recovery in the economy are visible. The central bank will be ready with a roadmap to reverse the expansionary stance quickly and effectively thereafter. The Reserve Bank of India will have to reverse the expansionary measures to anchor inflation expectations and subdue inflationary pressures while preserving the growth momentum The exit strategy will be modulated in accordance with the evolving macroeconomic developments, the RBI said.

The conduct of monetary policy will continue to condition and contain perception of inflation in the range of 4% to 4.5%. This will be in line with the medium-term objective of 3% inflation consistent with India's broader integration with the global economy, the RBI said.

The central bank said it will actively manage liquidity to avoid government borrowing crowding out private credit demand. RBI also said that government will need to return to a path of fiscal consolidation

Finance Minister Pranab Mukherjee after trading hours on Monday, 28 July 2009 announced tax breaks for industrial park schemes and developers of real estate and road projects to stimulate the economy and lift growth to 8-9 percent by the end of 2010. He announced a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh.

In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.

The government has also extended tax holiday to developers of industrial parks by two years until March 2011. A tax holiday for firms engaged in food processing has also been extended. Producers of natural gas from coal-bed methane blocks would also be extended tax breaks.

Annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on Thursday, 23 July 2009.

More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Meanwhile investor focus may shift from secondary market to the primary market as Adani Power's initial public offer of 30.16 crore shares in the price band Rs 90-100 opened for subscription from today, 28 July 2009. The issue received strong investors response and was subscribed 3.87 times by 13:00 IST. Adani said institutions including T. Rowe Price International Inc. demanded twice as many shares as offered in the so-called anchor investor portion of its initial sale.

The company will raise up to Rs 3,016 crore at the upper end of the price band, making it the second-biggest issue after Reliance Power.

Close on the heels of Adani Power, state-run NHPC is ready to hit the primary market in August to raise Rs 1,680 crore. Besides, Oil India and Pipavav Shipyard collectively plan to raise over Rs 2000 crore. Earlier, on 17 July 2009 the government said it is considering a part sale of its shareholding in the telecom monolith Bharat Sanchar Nigam (BSNL) to the public. Currently, the government fully owns BSNL.

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 858 companies rose 16.5% to Rs 45747 crore on 2.1% growth in sales to Rs 355857 crore in Q1 June 2009 over Q1 June 2008.

But equities may remain volatile ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009. As per reports, rollover of Nifty positions from July 2009 contacts to August 2009 contracts stood at 30%, as of Monday, 27 July 2009.

European markets were firm in opening trade led by pharma stocks. Key benchmark indices in UK, Germany and France were up by between 0.35% and 0.63%

Asian markets were were in green today, 28 July 2009. Key benchmark indices in Hong Kong, Taiwan, Singapore, South Korea rose by between 0.13% and 1.62%. However indices in China, and Japan were down 0.68% and 0.01% respectively, pausing after a week-long rally

US markets ended modestly higher on Monday, 27 July 2009 led by gains in banking shares after a bout of profit taking in early trade. The Dow Jones industrial average rose 15.27 points, or 0.17%, to 9,108.51. The S&P 500 index rose 2.92 points, or 030%, to 982.18, while the Nasdaq Composite Index rose 1.93 points, or 0.10%, to 1,967.89.

On the economic front, the new home sales in June 2009 rose the most in more than eight years. Sales spiked 11% to hit a better-than-expected annualised rate of 3.84 lakh units.

Trading in US index futures showed the Dow could rise 0 points at the opening bell on Tuesday, 28 July 2009.

At 12:25 IST, the BSE 30-share Sensex was up 13.33 points or 0.09% to 15,388.89. The Sensex opened 47.53 points higher at 15,422.57. The Sensex rose 79.32 points at the day's high of 15,454.36 in early trade. The Sensex lost 134.51 points at the day's low of 15,240.53 in mid-morning trade.

The S&P CNX Nifty was up 3.90 points or 0.09% to 4,576.20

The BSE clocked a turnover of Rs 4050 crore at 13:25 IST as compared with Rs 3171 crore by 12:25 IST

The market breadth, indicating the overall health of the market, was strong. On BSE, 1589 shares advanced as compared with 925 that declined. 75 shares remained unchanged.

The BSE Mid-Cap index was up 0.92% to 5,519.79 and the BSE Small-Cap index rose 1.59% to 6,240.67. Both these indices outperformed the Sense.

Among the 30-member Sensex pack, 22 advanced while the rest declined

Some auto stocks rose after the Reserve Bank of India (RBI) kept key policy rates unchanged at their historical low at its quarterly monetary policy review today, 28 July 2009.

India's largest truck market by sales Tata Motors jumped 7.47% to Rs 402.95 after a 3.76% jump in its ADR on Monday, 27 July 2009. It was the top gainer from the Sensex pack. The company reported 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008. Analysts had expected a steep fall in net profit due to lower sales volume. The result was announced at the fag end of the trading sessions today, 27 July 2009.

Tata Motors attributed the strong results to continued focus on cost efficiencies, decline in raw material prices and improvement in sales realization

India's largest tractor maker by sales Mahindra & Mahindra advanced 1.82% to Rs 831.10, rebounding from day's low of Rs 812.50. The company will unveil its Q1 June 2009 earnings on 30 July 2009.

India's top small car maker by sales Maruti Suzuki India declined 0.87%. The stock had stuck a record high of Rs 1397.50 in intra-day trade on Friday, 24 July 2009 buoyed by better than expected results announced during market hours on Thursday, 23 July 2009.

India's largest bike manufacturer by sales Hero Honda Motors lost 0.39% ahead of its Q1 June 2009 results on 29 July 2009.

Realty stocks gained after the Reserve Bank of India (RBI) kept key policy rates unchanged at their historical low at its quarterly monetary policy review today, 28 July 2009.

DLF (up 3.83%), Unitech (up 6.82%), Housing Development & Infrastructure (up 4.65%), Parsvnath Developers (up 1.51%), Omaxe (up 1.56%), and Indiabulls Real Estate (up 1.49%), advanced.

In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.

India's largest power generation company by sales NTPC rose 1.52% after net profit jumped 27.1% to Rs 2193.62 crore on a 25.8% increase in sales to Rs 12002.68 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours yesterday, 27 July 2009.

Bank stocks were subdued after the Reserve Bank of India's (RBI) in its quarterly monetary policy review today, 28 July 2009, raised inflation forecast. India's largest private sector bank by net profit ICICI Bank was down 2.12% to Rs 741.70 and was the top loser from the Sensex pack. The bank's net profit rose 20.63% to Rs 878.22 crore on a 9.61% decline in total income to Rs 7133.44 crore in Q1 June 2009 over Q1 June 2008. The bank reported its earnings on Saturday, 25 July 2009.

India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.23%. The state-run bank reduced interest rates on deposits by 25-50 basis points (a basis point equals one-hundredth of a percentage point) with effect from Monday, 27 July 2009.

India's second largest private sector bank in terms of operating income HDFC Bank slipped 1.09% mirroring a 1.9% fall in its American depository receipt (ADR) on Monday, 27 July 2009.

IT stocks were mixed, recovering from early lows. India's second largest IT firm by sales Infosys lost 2.03% to Rs 1981.50, off day's low of Rs 1968.25. India's largest IT exporter by sales TCS rose 0.12% to Rs 481, after slipping to day's low of Rs 472. On 17 July 2009, TCS announced Q1 results that beat market expectations. India's third largest IT exporter by sales Wipro gained 0.82% to Rs 463.50, after touching day's low of Rs 452. On 22 July 2009, Wipro announced better-than-expected Q1 results.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.21% to Rs 1915.80, extending yesterday's over 3.78% fall. The fall in the stock materialised after the company posted disappointing Q1 June 2009 results after trading hours on Friday, 24 July 2009. Nevertheless, the stock recovered from day's low of Rs 1891

RIL's net profit fell 11.5% to Rs 3636 crore on a 22.9% decline in sales to Rs 32055 crore in Q1 June 2009 over Q1 June 2008. Reliance Industries (RIL) saw its net profit dip for the third straight quarter, as margins from its refining business halved and the global recession reduced fuel demand. RIL's gross refining margins (GRMs) - the difference between cost of crude oil and the price of refined petroleum products - came down 52.22% to $7.5 per barrel in Q1 June 2009 compared with $15.7 per barrel in Q1 June 2008.

Telecom pivotals held firm ahead of meeting of a Group of Ministers (GoM) to decide on the base price for 3G spectrum on 31 July 2009.

India's largest cellular services provider by sales Bharti Airtel rose 1.07%. As per reports, Bharti Airtel and South Africa's MTN may extend by about four weeks their 31 July 2009 deadline for talks to agree on a merger.

Bharti and MTN have been in exclusive talks that could lead to a merger creating the world's No. 3 wireless group with more than 200 million subscribers and combined revenue of $20 billion.

India's second largest cellular services provider by sales Reliance Communications rose 2.06%.

The GoM is set up to look into matters relating to pricing of spectrum and number of operators to be allowed in each telecom circle. The finance ministry had proposed a base price of Rs 4,040 crore for 3G spectrum, whereas the Department of Telecom (DoT) suggested a price of Rs 3,540 crore. While presenting the Union Budget, the finance minister, Mr Pranab Mukherjee, said Rs 35,000 crore was expected to be raised from the auction.

India's largest FMCG company by sales Hindustan Unilever was unchanged at Rs 299 ahead of its Q1 June 2009 results today, 28 July 2009.

Diversified major Grasim Industries was up 0.90% ahead of its Q1 June 2009 results today, 28 July 2009. The stock moved in a range of Rs 2870 and Rs 2938 so far in the day.

Other Stories
4 Sensex off 163 points from the day's high (28-Jul 12:29 Hrs IST)
4 Bank stocks cut losses as RBI leaves key policy rates unchanged (28-Jul 11:31 Hrs IST)
4 Sensex slips after positive start as banking stocks decline (28-Jul 10:31 Hrs IST)
4 Hindustan Unilever jumps 7% as market cuts losses (27-Jul 14:33 Hrs IST)
4 Market recovers after hitting intraday low (27-Jul 13:31 Hrs IST)
4 Market slips into the red as RIL, ICICI Bank extend losses (27-Jul 12:32 Hrs IST)
4 HUL strikes 52-week high in firm market (27-Jul 11:33 Hrs IST)
4 Market recovers after a muted start; RIL drops over 3% (27-Jul 10:30 Hrs IST)
4 ONGC, Tata Motors hog limelight (24-Jul 14:35 Hrs IST)
4 Small, mid-cap indices outperform Sensex (24-Jul 13:32 Hrs IST)
Next4

Twelve real estate stocks rose 1.13% to 7.78% after the Reserve Bank of India kept key policy rates unchanged at their historically lowest levels at a quarterly monetary policy review today, 28 July 2009.

Currently, the reverse repo rate is at a historical low of 3.25% and the repo rate is at a record low of 4.75%
At 13:13 IST, the BSE Realty index was up 4.06% at 4,067.38. It outperformed the Sensex, which was up just 0.05% at 15,382.49.

Mahindra Lifespace Developers (up 7.78%), Unitech (up 5.80%), Housing Development and Infrastructure (up 4.72%), Phoenix Mills (up 4.07%), Anant Raj Industries (up 3.79%), DLF (up 3.49%), Ansal Properties & Infrastructure (up 3.05%), Sobha Developers (up 3.03%), Ackruti City (up 2.76%), Omaxe (up 1.56%), Orbit Corporation (up 1.34%), and Indiabulls Real Estate (up 1.13%), rose

The BSE Realty had outperformed the market over the past one month till 27 July 2009, soaring 16.12% as compared to the Sensex's 4.13% rise. It had also outperformed the market in the past one quarter, spurting 77.50% as against the Sensex rise of 35.20%.

The realty shares were also in demand as Finance Minister Pranab Mukherjee announced sops for the housing sector after trading hours on Monday, 27 July 2009.

To provide stimulus to the housing sector, tax holiday has been extended to real estate developers on profits derived from housing projects approved between 1 April 2007 and 31 March 2008, if such projects are completed on or before 31 March 2012.

Mukherjee also proposed an interest subsidy of 1% for home loans of upto Rs 10 lakh availed for houses worth upto Rs 20 lakh. The minister earmarked Rs 1,000 crore for this purpose and said it will also benefit the lower and middle income housing sector. The interest subsidy will be routed through scheduled commercial banks and housing finance companies registered with the National Housing Bank.

The market is likely to be in Sensex range of 14500-17000 for some months, says Sandeep Bhatia of Kotak Securities, on CNBC TV18. Unless there is a big global recovery, our market is unlikely to sustain higher levels, he feels. Corporate earnings have been a positive surprise but disappointing numbers from RIL and ICICI Bank have dragged the market down, he adds

Buy JSW Steel on dips, says Sudarshan Sukhani, technical analyst, on CNBC TV18. It is a stock you can add to your portfolio because it is excellent on the charts, he adds. The stock is currently trading at Rs 688, up 0.6% on the BSE.

At noon the market continues to trade choppy, unaffected by the Credit Policy announcement of key rates being unchanged. Sensex is trading at 15276, down 98 points from its previous close, and Nifty is at 4542, down 30 points. CNX Midcap index is up 0.7% and BSE Smallcap index is up 1.3%. The market breadth is positive with advances at 757 against declines of 439 on the NSE.

Buy YES Bank with target of Rs 180, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 150, he adds. The stock is currently trading at Rs 164, up 1.5% on the BSE.

Buy PFC at current levels with target of Rs 240, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 205, he adds. The stock is currently trading at Rs 219.60, up 0.7% on the BSE.

-er

28 Jul 2009,
MUMBAI: According to Angel Broking, the initial public offering of Adani Power is fairly priced. The brokerage has a neutral view on the

IPO.

“Adani Power has drawn up ambitious expansion plans, which, when complete, will catapult it into the ivy league of power generating companies in India. In fact, the company also has the vision of having 20,000 MW of installed capacity by 2020. The company’s plants are located strategically and with adequate fuel supply. However, the company’s lack of a significant operating history casts a shadow over its ability to execute projects of such mammothscale.

To add to the skepticism, the company has decided to use only Chinese equipment at all its plants, which have been dogged by a host of technical issues when used for operating Indian plants in the past. On the project financing front too, the company has over-leveraged itself with a Debt-to-Equity ratio of 80%. We have valued all upcoming projects of the company individually and arrived at a fair value of Rs 82/share, while strictly adhering to the execution timeline given in the RHP. We have assumed the Cost of Debt and Cost of Equity at 11.25% and 14%, respectively. We believe that the IPO is fairly priced and keep a Neutral view on it,” the report said.

Adani Power is coming out with a initial public offering of 29.40 crore shares of face value Rs 10. The issue represent 13.5 per cent of the post-issue paid up capital of the company.

The company has fixed the price band in the range of Rs 90-100 per share, resulting in a post money valuation of Rs 196 billion to Rs 218 billion respectively. At the indicated IPO price band, Adani Power will raise Rs 26.4 billion to Rs 29.4 billion. The issue opens for subscription today.

Adani Power plans to use the proceeds to part finance construction and development of Mundra Phase IV, Gujarat power project for 1,980 MW. It will fund equity contribution in subsidiary Adani Power Maharashtra to part finance construction and development cost of power project for 1,980 MW at Tiroda, Maharashtra.

TORRENT POWER
VOLUME INCREASE

NOCIL INCREASE VOLUME 19 LAKH

NOIDA TOLL INCREASE VOLUME 12 LAKH

BUY GMR INFRA STOPLOSS 144 TARGET 155 --- PRAKASH GABA
BUY MAHINDRA SATYAM STOPLOSS 96 TARGET 110 -- KAAPUR SHARMA & CO.
BUY NIFTY FUTURE STOP LOSS 4540 TARGET 4640 -- KAAPUR SHARMA
BUY NEYVELI LIGNITE STOP LOSS 130 TARGET 160 -- NITIN MURARIKA

Motilal Oswal has maintained its buy rating on Reliance Industries in its July 24, 2009 research report.

"Reliance Industries (RIL) reported 1QFY10 PAT of Rs 36.4 billion (versus our est of Rs 36.5 billion), down 11.5% YoY and 6% QoQ. We believe that apart from its ability to maintain petchem margins, key issues to watch in the near term would be: (1) resolution of its court case with RNRL and (2) ramp-up of KG-D6 gas supplies. RIL currently trades at 16x FY10 EPS of Rs 125.5 and 12.7x FY11 EPS of Rs 158.5. We are rolling over our valuation basis from FY10 to FY11. Our revised base SOTP target price for RIL is Rs 1,638 per share. Further, we believe there’s potential E&P upside of Rs 516 per share. Maintain 'Buy'," says Motilal Oswal's research report.

MUMBAI (Reuters) - The Reserve Bank of India (RBI) is expected to hold key rates steady at its policy review next week as growth begins to show some signs of revival and concerns about rising prices are seen deterring further cuts, a Reuters poll shows.

Idea Cellular fell 2.39% to Rs 79.60 at 14:01 IST on profit booking after rising 8.87% in the preceding two trading sessions, boosted by stronger-than-expected Q1 results.

Johannesburg, July 27 (IANS) Chinese drugs with Indian labels are flooding West Africa, seriously impacting attempts by Indian pharmaceutical companies to enter the African market, according to the Pharmaceutical Export Promotion Council of India (Pharmexcil).

Technical Analyst, Vijay Bhambwani is of the view that one can invest in Shree Cements with be 2 or 3 quarter time frame.

Bhambwani told CNBC-TV18, "In Grasim you can take a positional punt rather than an intraday punt. Shree Cements would be 2 or 3 quarter time frame kind of an investment at the present levels because this stock has been showing a huge amount of relative strength comparative vis-à-vis the Nifty Fifty. On Ambuja Cement one could take a punt intraday with Rs 1-2 kind of a target objective because of all the three Ambuja Cemenst would be the shortest term perspective because this stock actually has been lagging off late and Grasim for the medium term and Shree Cements for the long term.”

Lanco Infratech surged 5.81% to Rs 439.65 at 13:18 IST on BSE, after the company achieved financial closure for its 76 megawatt hydro electric project in Uttarakhand.

Reuters
Global equity markets will consolidate gains this summer with chartists predicting that a sharp rise since March has run its course for now, but technical signals have set the stage for another rally into year-end.

NEW DELHI (Reuters) - India's export situation hasn't yet improved though stimulus measures have helped the capital goods sector, trade minister Anand Sharma said on Monday.

"Stimulus measures have helped the capital goods sector and the domestic manufacturing industry is seeing a turnaround," Sharma told Parliament on Monday.

Tata Motors fell 2.14% to Rs 365.50 at 12:24 IST ahead of its Q1 June 2009 results due today, 27 July 2009

Castrol India galloped 3.95% to Rs 420.05 at 11:56 IST after net profit rose 55% to Rs 128.40 crore on a 2.56% rise in total income to Rs 646.80 crore in Q2 June 2009 over Q2 June 2008.

FOR 1 YEAR TGT
RELIANCE AMBAREESH BALINGA TGT 2400
ONGC AMBAREESH BALINGA TGT 1400
NTPC AMBAREESH BALINGA TGT 290
DABUR ANIL MANGHNANI TGT 170
REC ANIL MANGHNANI TGT 300
BOI ANIL MANGHNANI TGT 500
GSPL V.K. SHARMA
BARTRONICS V.K. SHARMA
GENESYS INTL V.K. SHARMA
WELSPUN GUJ ZEE BUSINESS

Asian Paints jumped 3.91% to Rs 1359 at 11:31 IST after net profit rose 67.8% to Rs 164.45 crore on a 17% rise in sales to Rs 1164.82 crore in Q1 June 2009 over Q1 June 2008.

Jaiprakash Associates rose 3.15% to Rs 249.10 at 10:59 IST after net profit surged 292.3% to Rs 491.18 crore on a 78.3% increase in sales to Rs 2067.08 crore in Q1 June 2009 over Q1 June 2008.

(Versus the same period a year earlier, in billion rupees
unless stated)
Net profit 3.85 vs 2.10
Total Income 21.52 vs 13.45
NOTE: Jaiprakash Associates Ltd (JAIA.BO) is an engineering
and construction firm and also makes cement.
A Reuters survey of eight brokerages had forecast quarterly
net profit at 1.76 billion rupees on net sales of 14.8 billion
rupees.
(Reporting by Devidutta Tripathy in NEW DELHI)

Reuters - 02:21 PM
The sharp trade contraction during the economic crisis, closely matching the trend in the 1930s, has triggered widespread fears that the world could suffer a re-run of the destructive protectionism of that era.

By Narayanan Somasundaram & Bharghavi Nagaraju

MUMBAI (Reuters) - ICICI Bank Ltd, India's No.2 lender, on Saturday beat forecast with a 20.6 percent rise in net profit helped by higher trading income.

ICICI said net profit rose to 8.78 billion rupees ($182 million) in its fiscal first quarter ending in June, from 7.28 billion rupees reported a year ago.

A Reuters poll of analysts had forecast net profit to rise to 7.7 billion rupees.

A senior company official said loan growth was likely to resume in the second half of the year.

New York-listed ICICI saw its total loan book fall by 11.6 percent in the quarter to $41.4 billion as it curbed lending to rein in bad debts.

"We should see a net loan growth from the second half when the rise in corporate, housing and auto loans overtake the reduction in unsecured advances," Chanda Kochhar, who took over in May as Managing Director said in a conference call.

ICICI, which grew loans by a third in the past few years by boosting retail, personal loans and credits, has changed tack to concentrate on the safer corporate and housing loans.

Analysts expect the bank to see a full fledged revival in loan growth in the year to March 2011 only.

"I see their FY10 loan growth at about 5 percent," said Angel Broking analyst Vaibhav Agrawal. "I see muted core operating performance for the full year. Their strategy to cut costs and curb lending is helping them reach a stronger wicket when the environment improves next fiscal year."

India bank loan growth has slid to 16 percent in June from nearly double that in the year to March 2008 as demand for credit fell in a slowing economy.

TRADING INCOME

Profits were primarily boosted by treasury income, trading in bonds and currencies that recorded a pre-tax profit of 10.97 billion rupees from a loss of 4.09 billion rupees a year ago.

Most Indian banks have gained from trading income but rising bond yields on concerns of record government borrowing of $93 billion could dent gains in the coming quarters. Bond prices move inversely to price.

The bank said operating expenses slid by a fifth to 14.94 billion rupees in the quarter as it cut employee costs and loan marketing expenses.

But bad debts as a percentage of gross advances rose to 4.63 percent from 3.72 percent a year ago and analysts said defaults appear to be plateauing. Bad debts slipped marginally from the previous quarter though it increased on year.

Retail loans, which account for nearly half the loan book, posted a loss in the quarter but Kochhar said falling costs should reverse the course.

Larger rival State Bank of India is expected to say on July 30 its quarterly net rose 22.5 pct.

Net interest income, the difference between interest earned and paid, fell 5 percent to 19.85 billion rupees, ICICI said.

It plans to add 580 more branches to its 1,471-strong network to tap low cost deposits that reached 30.4 percent of total from 27.6 in the year ago.

Shares in ICICI, which has a market value of about $17.6 billion, rose 117 percent in the June quarter, compared to an 83 percent rise in the sector index and 49.3 percent rise in the benchmark index.

The stock closed 1.4 percent lower at 766.85 rupees on Friday in a Mumbai market that climbed almost 1 percent.

Operating income rises 11.86% to Rs 1301.01 crore

Vijaya Bank reported net profit of Rs 143.38 crore in the quarter ended June 2009 as against net loss of Rs 76.64 crore during the previous quarter ended June 2008. Total operating income rose 11.86% to Rs 1301.01 crore in the quarter ended June 2009 as against Rs 1163.02 crore during the previous quarter ended June 2008.

28 JULY 2009 - ------------ RBI POLILY ANNOUNCE

28 JULY 2009 ---------------ADANI POWER IPO OPEN

27 JULY 2009 ---------------NTPC, TATA MOTOR RESULTS

29 JULY 2009 ---------------HERO HONDA, JINDAL STEEL RESULTS

30 JULY 2009 ---------------SBI RESULT
31 JULY 2009 ---------------UNITECH RESULT

U.S .
27 JULY 2009 ---------------US HOME DATA
31 JULY 2009 ---------------US GDP DATA

Chairman and managing director Mukesh Ambani was quoted as saying in a statement: "Timely completion with safe and stable start up of the new SEZ refinery and the deep water, oil and gas KG D-6 block are noteworthy accomplishments. These projects will not only play a significant role in shaping the future growth at RIL but, more importantly, will help change the landscape of India and the industry globally."

Tata Motors, Ashok Leyland, Videocon Industries, and Suzlon Energy are among the other gainers.

Auto components maker Bharat Forge soared 14.06% to Rs 181.70. It topped the gainers in the BSE's A group. The stock rose after sales rose 24% in Q1 June 2009 over Q4 March 2009 and operating margins widened to 15.07% in Q1 June 2009 from 14.6% in Q4 March 2009.

However, Bharat Forge's net profit tumbled 96.39% to Rs 0.96 crore on a 43.3% fall in sales to Rs 351.58 crore in Q1 June 2009 over Q1 June 2008.

India's largest truck maker by sales Tata Motors spurted 9.72% to Rs 373.50 ahead of its Q1 June 2009 results to be announced on Monday, 27 July 2009. It was the second biggest gainer in 'A' group. Rally in Tata Motors' American depository receipt (ADR) also got the stock soaring in the domestic market. The Tata Motors ADR rose 3.49% to $9.48 on Thursday, 23 July 2009.

Commercial vehicle maker Ashok Leyland climbed 8.48% to Rs 35.80 ahead of its Q1 June 2009 results to be announced on Monday, 27 July 2009. It was the third biggest gainer in 'A' group.

Diversified company Videocon Industries galloped 7.26% to Rs 186.05. It was the fourth biggest gainer in 'A' group. The company will announce Q1 June 2009 results on 31 July 2009.

Wind turbine maker Suzlon Energy rose 7.21% to Rs 103.40. It was the fifth biggest gainer in 'A' group. The company will announce Q1 June 2009 results on 31 July 2009.

JOHANNESBURG: South Africa's Treasury said on Friday it was broadly supportive of a tie-up between mobile phone operator MTN and Bharti Airtel but that the "devil is in the detail".

Children getting drenched in waves that hit the shore during high tide in the Arabian sea at the Gateway of India, Mumbai.

Markets gain ahead of Reliance results
- FIIs net buy Rs 663cr, DIIs net sell Rs 207cr
- Microsoft Q4 net down 29%; hit by weak PC sales globally
- CEAT Q1 net profit at Rs 60 cr
- Jet Airways India posts net loss of Rs 225 cr for Q1
- Govt fixes price band for NHPC IPO slightly over mkt buzz

1- AKRUTI CITY
2- SUZLON
3- EVERONN
4- MAHINDRA SATYAM
5- NTPC

1- RELIANCE INDUSTRIES
2- ONGC
3- BHEL
4- STATE BANK OF INDIA
5- HDFC
6- AIRTEL

22 Jul 2009,

MUMBAI: In times of volatile market conditions, select pharmaceutical stocks are seen as good investment bets, with analysts seeing 20-25 CAGR in Volatility in the stock markets
Measuring market volatility
Ten hot money-spinners in India
Long term plan for better returns
Should you sell your stocks?

12-15 months.

Analysts are looking at companies into Contract Research & Manufacturing Services (CRAMS) and makers of generic drugs. Stocks falling in the former category are preferred over the latter, due to recent concerns raised by the US FDA.

The share price of Sun Pharmaceutical tanked by 12 per cent after US authorities stopped production at its US subsidiary, Caraco Pharmaceuticals, for violation of current good manufacturing practices (cGMP). In 2008, the FDA also banned 29 Ranbaxy drugs for manufacturing problems at two of its plants while holding the company responsible for manipulating the data submitted to the regulator.

Analysts feel the overall outlook for the sector is now positive. Effective measures have been taken by pharma companies to check foreign exchange losses due to depreciating rupee. Further, valuations are quite attractive after sharp corrections. The September quarter results are expected to be much better.

The outlook and valuations for the sector are good, with some company specific risks. However, US FDA concerns continue to weigh on the sector. In the domestic and emerging markets, growth continues though somewhat subdued due to restructuring sales forces or cautious approach to avoid riskier sales, mentions a study report by ING Investment Management.

Said Madhumita Ghosh, vice president, Research & PMS, Unicon Investment Solutions, “Pharmaceutical sector is currently trading at PE of 21x. Going forward, companies would encourage employment generation. Companies which are in joint venture with foreign counterparts will recruit cheap but quality staff from India to boost product marketing.”

Sarabjit Kour Nangra, vice president-research, Angel Broking, said, “There is no downside risk involved in the sector unless market heavily corrects, which is unlikely. In a turbulent time, an investor can allocate 15% of his total equity investment to pharma sector stocks.”

In the CRAMS segment, analysts recommend Jubilant Organosys, Cadila and Piramal Healthcare, wherein they foresee huge future opportunities. In generic drug segment, there are some stocks with good potential viz Lupin, Sun Pharma and Cipla.

Jubilant Organosys was in high debt but it got discounted by its recent acquisition of a Canadian firm called Draxis Speciality Pharmaceuticals Inc. for $253 million using a combination of proceeds from a previous FCCB issue and debt amounting to $160 million. Similarly, Lupin is trading at an attractive PE of 18x. Despite all odds, Sun Pharma has highest domestic margin of 70 per cent and zero debt on balance sheet.

Market will remain in consolidation mode over the next 3-4 months. Before the growth ride begins, it is right time to take exposure to select pharma stocks to reap the benefit of the next bull run, feels Angel’s Nangra.

The stocks future added 4 crore shares. Punj Lloyd ended up nearly 5%, with an open interest (OI) build up of nearly 15 lakh shares.

Infosys wins 10-year eBiz project by C & I minstry
Economic Times - ‎1 hour ago‎
21 Jul 2009, 1847 hrs IST, PTI BANGALORE: Infosys Technologies Limited on Tuesday announced it has been awarded a 10 year eBiz project by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India.

NO.1 COMPANY
Industry: Conglomerate

U.S.

Ranked second last year, General Electric is now the world’s largest company, based on its composite score for sales, profits, assets and market value.

His $258 million Avahan project on AIDS in India got lost between B-school and brothel.
Says one critic of Bill Gates' Avahan: 'There is too much money and too many really smart people, with too little coming out.'

Madras Cement, Mangalore Refinery and Petrochemicals, Voltas and Tata Steel are among the other gainers.

Drug maker Glenmark Pharmaceuticals spurted 7.47% to Rs 264.85. The scrip topped the gainers in the BSE's 'A' group. The company will declare its Q1 June 2009 results on 27 July 2009.

Madras Cement surged 7.10% to Rs 117.70. The stock was the second biggest gainer in 'A' group. The company will declare its Q1 June 2009 results on 23 July 2009.

Mangalore Refinery and Petrochemicals climbed 6.76% to Rs 85.30. It was the third biggest gainer in 'A' group.

Voltas jumped 6.67% to Rs 140.70. It was the fourth biggest gainer in 'A' group. The company will declare its Q1 June 2009 results on 30 July 2009.

The world's sixth largest steel maker Tata Steel jumped 5.28% to Rs 411.75 after the company launched an issue of issue global depository receipts. Tata Steel said it will raise $500 million and priced each global depository receipts (GDR) at $7.644. The company will use the funds for expansion projects. The stock was the fifth biggest gainer in 'A' group.

SESAGOA
VOLTAS
IDFC
CANARA BANK
UNITECH
BALRAMPUR CHINI
ICSA
GUJRAT NRE COKE

4430 to 4570

BELOW @ 4517 level, it will be in BEARISH TREND. SELLING is suggested with SL of 4521 level for the target @ 4488 to 4473 levels; Regarding BULLISH TREND, BUYING is suggested @ the level of 4521 with SL of 4517 Target @ 4545 to 4570 levels.....!!!

RELIANCE FO CLOSED @ RS. 2030

POSITIVE TREND @ Rs. 2016 with SL @ Rs 2009 for the target of Rs. 2051 to 2057 levels.

MARUTI FO POSITIVE TREND @ RS. 1212

POSITIVE TREND @ Rs. 1197 with SL @ Rs 1186 for the target of Rs. 1237 to 1247 levels.

HDFC FO CLOSED @ RS. 2506

POSITIVE TREND @ Rs. 2488 with SL @ Rs 2478 for the target of Rs. 2531 to 2537 levels.

Oil India IPO Opens on 7th Sep. 2009


DIRECTION of the INDIAN STOCK MARKET 20.07.2009
4307 to 4490
BELOW @ 4409 level, it will be in BEARISH TREND. SELLING is suggested with SL of 4417 level for the target @ 4330 to 4307 levels;

Regarding BULLISH TREND, BUYING is suggested @ the level of 4417 with SL of 4409 Target @ 4473 to 4490 levels.....!!!

TATA STEEL FO CLOSED @ RS. 390
POSITIVE TREND @ Rs. 381 with SL @ Rs 373 for the target of Rs. 403 to 413 levels...!!!

AXIS BANK FO CLOSED @ RS. 857
POSITIVE TREND @ Rs. 847 with SL @ Rs 834 for the target of Rs. 878 to 881 levels...!!!

SAIL FO CLOSED @ RS. 168
POSITIVE TREND @ Rs. 163 with SL @ Rs 159 for the target of Rs. 179 to 181 levels...!!!

The strong upward momentum is likely to continue.

But Crossing and Closing above the 15000-15100 will be challenging.

Sensex Resistance 14856-14955-15097-15257. Support 14630-14439-14179-14016.

Nifty Resistance 4406-4439-4479-4509. Support 4333-4285-4249-4205.

UK asks Tatas to accept revised JLR proposal

The UK Government has asked Indian conglomerate Tatas to accept a revised proposal to guarantee hundreds of millions of pounds of short-term funding for luxury brands Jaguar Land Rover or risk the plan being taken off, says a media report.

UK Business Secretary Lord Mandelson has warned Tatas -- the owner of Jaguar Land Rover -- to accept a revised proposal to guarantee hundreds of millions of pounds in short-term funding or risk seeing it taken off the table, The Telegraph has reported.

Quoting people close to the situation, the report said,

"Ministers were surprised that Tatas had not yet provided a response to the latest proposal".

"The warning is understood to have been delivered by Lord Mandelson to Tata Motors (TATAMOTORS.BO : 296.2 +7.55) in recent days following a fresh funding proposal that was made by the Government earlier this month," the publication said in a report published online on Saturday.

According to the newspaper, at stake is a Government guarantee for 340 million euros (290 million pounds) of European Investment Bank loans.

Further, a separate short-term commercial loan of up to 200 million pounds is also understood to be being negotiated by the company before a longer-term financing structure is established, it added.

Essar talks with Dhabi Gp. on Africa telecom deal


MUMBAI (Reuters) - India's Essar Group may invest into Dhabi Group's telecommunication business in Africa to expand operations in the region, the Indian energy-to-steel conglomerate said in a statement on Sunday.

Dhabi, a group of investors based in the UAE, and Essar agreed to enter exclusive talks for the latter to put equity into the African businesses of the middle eastern group for growth capital, Essar said.

The investment "will be the basis of a partnership to create a significant presence in Africa," Essar said.

Dhabi's telecom assets in Africa include Warid Telecom Uganda and Warid Congo SA, the group's website showed.

The Indian group already offers mobile services in Kenya under the 'yu' brand through its unit, Essar Telecom Kenya.

Essar Group is Vodafone's partner in India's No.3 mobile firm, Vodafone Essar. It holds a 33 percent stake in Vodafone Essar and holds a stake of less than 10 percent in Loop Telecom's parent, Loop Mobile.

Standard Chartered Bank is acting as exclusive financial advisor to the Dhabi Group, the Essar statement said.

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MUMBAI (Reuters) - U.S. Secretary of State Hillary Clinton met survivors of the Mumbai attacks, talked climate change with Indian industrialists and was serenaded by village women as she visited India's financial capital on Saturday.

On a trip aimed at deepening U.S.-Indian ties, Clinton's first act was to attend a commemoration of the victims of the Nov. 26-29 militant attacks in Mumbai that killed 166 people.

In a sign of solidarity, she stayed at the Taj Mahal Palace and Tower Hotel, one of two luxury landmarks, along with the Trident/Oberoi, which were the primary targets of the Islamist gunmen who besieged India's financial and entertainment hub.

"I wanted to send a message that I personally and our country is in sympathy and solidarity with the employees and the guests of the Taj who lost their lives ... with the people of Mumbai," Clinton told India's Times Now in an interview.

She also wanted to give "a rebuke to the terrorists who may have tragically taken lives but did not destroy the spirit (and) resilience of the people of this city or nation."

Speaking earlier, Clinton said the bombings of two Jakarta luxury hotels that killed nine people on Friday were a "painful reminder" that the threat of "violent extremism" still lurks.

"It is global, it is ruthless, it is nihilistic and it must be stopped."

India blames Pakistani militants for the violence and has paused five-year-old peace talks with its nuclear-armed rival until it is satisfied with Pakistan's action against militants and commitment not to let its soil be used to launch attacks.

Prime Minister Manmohan Singh and his Pakistani counterpart Yusuf Raza Gilani agreed on Thursday to fight terrorism jointly, but Singh insisted Pakistan must punish those responsible for the Mumbai attacks if it wants formal talks.

While saying it was up to the two sides how to proceed in their talks, Clinton said Pakistan had begun to show much greater determination "to take on the terrorists," apparently referring to its military campaign against Taliban insurgents.


CLIMATE CHANGE, GROWTH

The U.S. secretary of state also met some of India's business titans, including Reliance Industries Ltd. Chairman Mukesh Ambani and Tata Group Chairman Ratan Tata.

Clinton's agenda encompasses everything from reining in climate change and promoting economic growth to advancing nuclear and defence deals potentially worth tens of billions of dollars to U.S. companies.

She said she was "optimistic" that the two sides would be able to conclude a defence pact allowing Washington to monitor whether U.S. arms sold are used for their intended purposes and to ensure the technology does not spread to other countries.

Such a pact is necessary under U.S. law for U.S. firms to bid for India's plan to buy 126 multi-role fighters, one of the largest arms deals in the world at $10.4 billion and a potential boon to Lockheed Martin Corp and Boeing Co.

The United States also hopes that during Clinton's trip, which takes her to New Delhi on Sunday, the Indian government will announce two sites where U.S. firms would have the exclusive right to build nuclear power plants.

During a visit to a handicrafts shop, Clinton carried out an Internet video call with village women and later beamed as she was surrounded by a group of women who sang for her.