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Showing posts from February 10, 2008

Worse than a bear marke tin indian stock masrrket

SMARTSHAREVinod K Sharma / New Delhi February 16, 2008Last week we wondered whether we were in a bear market. Now I don't think there is any need to find answers for that question. Not that the street has reached a firm conclusion, but the kind of drubbing that stocks have seen in the last fortnight, the losses are almost equal to what one can have in a sustained bear market. Hectic investors' counselling at the beginning of the week brought home the extent of the loss suffered in this January-February slide. That made us go back to our desks and compare the dents received during this period to a full-fledged bear market from 14 February, 2000 to 28 September, 2001. 

On February 14, 2000, our Sensex made a new high of 6,151 and the markets tanked thereafter. The bottom was formed by the Sensex on September 21, 2001 at 2,594. The Sensex fell 3,340 points or 54.3 per cent in the 19.5 months of the bear m…

Sugar stocks sweeten in choppy trade

Bajaj Hindustan rose 2.83% to Rs 237.80, Balrampur Chinin Mills gained 3.43% to Rs 88.90 and Shree Renuka Sugars advanced 7.89% to Rs 891.30, in volatile trade on fresh buying Meanwhile the BSE Sensex was up 253.90 points or 1.43% to 18,020.36, as Asian stocks recovered from early fall. Bajaj Hindustan saw volumes of 22.74 lakh shares, Balrampur Chinin Mills witnessed volumes of 25.62 lakh shares and Shree Renuka Sugars clocked volumes of 1.53 lakh shares. Sugar stocks witnessed high volatility in afternoon trade. After hitting an intra-day high of Rs 243.90 in early afternoon trade, Bajaj Hindustan declined sharply to touch an intra-day low of Rs 223. From here it staged some recovery. At the day's high, the stock rose 5.47%. At the day's low, it fell 3.56%. Balrampur Chinin Mills also slipped sharply from Rs 87.70 in afternoon trade to touch an intra-day low of Rs 81.50. From here it staged a sharp recovery to strike an intra-day high of Rs 90.50 in mid-afterno…

Bhushan Steel strengthens on diversification

Bhushan Steel was down 0.65% to Rs 1032 at 12:03 IST on BSE, having recovered from session's low of Rs 988, on signing a memorandum of understanding with the Madhya Pradesh state government for investing Rs 4000 crore in the state. The company made this announcement during market hours today, 15 February 2008. Meanwhile, BSE Sensex was down 131.36 points or 0.74% to 17,635.27, on weak cues from the global markets. US stocks dropped on Thursday, 14 February 2008, as the credit crunch surfaced unexpectedly in the municipal bond market and after the Federal Reserve Chairman Ben Bernanke said that he sees sluggish economic growth ahead. On BSE, 16,579 shares were traded in the counter. The scrip had an average daily volume of 53,861 shares in the past one quarter. The stock hit a high of Rs 1035 so far during the day. The stock had a 52-week high of Rs 1730 on 7 January 2008 and a 52-week low of Rs 383.60 on 14 February 2007. The mid-cap scrip had underperformed the mar…

MFs accumulate more large caps in January

Mutual funds, which diluted their holdings in index heavyweights in favour of mid and small-cap stocks a few months ago, appear to be returning to large cap stocks. An analysis of the January portfolio (latest available) disclosed by mutual funds shows that more than half of the top 50 stocks were drawn from the large caps. Fund houses may have used the sharp meltdown in indices that began in mid-January to add to their holdings in frontline stocks. Recently listed Future Capital was accumulated by 115 schemes along with Reliance Petroleum, Tata Chemicals, Thermax, Sintex Industries and Cairn that moved into the top 50 slots. Seven stocks moved out of the top fifty between December and January and a new set moved in. Reliance Industries continues to be at top of the list. Taking the correction in their stride, fund houses added the stock to their portfolio. Stocks such as BGR Energy, Power Grid Corporation and Bharat Electronics have slipped out of the top 50. While Jindal …

DLF hits a Sixer on IPL sponsorship buzz

DLF jumped 6.50% to Rs 868 at 12:00 IST on BSE, on reports the company has bagged the Indian Premier League title sponsorship rights for Rs 200 crore for five years with a first-year commitment of Rs 40 crore. Meanwhile, BSE Sensex was up 703.76 points or 4.15% to 17,652.90, on strong cues from the global markets. Stocks rose across the globe as a surprise increase in US retail sales in January 2008 helped ease recession worries in the world's largest economy. On BSE, 3.95 lakh shares were traded in the counter. The scrip had an average daily volume of 5.80 lakh shares in the past one quarter. The stock hit a high of Rs 877 and a low of Rs 825 so far during the day. The stock had a 52-week high of Rs 1225 on 15 January 2008 and a 52-week low of Rs 505.60 on 5 July 2007. The mid-cap scrip had underperformed the market over the past one month till 13 February 2008, declining 30.70% compared to the Sensex's decline of 16.31%. It had outperformed the market in the pa…

Steel Authority of India shines

Steel Authority of India advanced 4% to Rs 206.70 at 10:03 IST on BSE on reports that the stock is one among eight Asian stocks chosen by MSCI Inc. to join its global indices in February 2008. Meanwhile, BSE Sensex was up 606.73 points or 3.58% to 17,555.61 On BSE, 1.08 lakh shares were traded in the counter. The stock had an average daily volume of 18.55 lakh shares in the past one quarter. The stock hit a high of Rs 210 and a low of Rs 202 so far during the day. The stock had hit a 52 week high of Rs 292.50 on 13 December 2007 and a 52 week low of Rs 91.50 on 6 March 2007. The large-cap scrip had underperformed the market over the past one month till 13 February 2008, declining 20.54% compared to the Sensex's decline of 16.31%. It had also underperformed the market in the past one quarter, declining 20.44% compared to Sensex's decline of 14.33%. The company's current equity is Rs 4,130.40 crore. Face value per share is Rs 10. The current market price of Rs …

Reliance Industries advances on natural gas discovery

Reliance Industries rose 2.40% to Rs 2,382 at 14:28 IST on BSE after it discovered natural gas reserves in an exploration block in the Krishna Godavari basin, Andhra Pradesh Meanwhile, BSE Sensex was up 227.07 points or 1.37% to 16,835.05 On BSE, 11.06 lakh shares were traded in the counter. The stock had an average daily volume of 7.90 lakh shares in the past one quarter. The stock hit a high of Rs 2,467 and a low of Rs 2,340 so far during the day. The stock had hit a 52 week high of Rs 3,252.10 on 15 January 2008 and a 52 week low of Rs 1,250 on 5 March 2007. India's largest private sector entity by market capitalisation and oil refiner had underperformed the market over the past one month till 12 February 2008, declining 25.70% compared to the Sensex's decline of 20.26%. It underperformed the market in the past one quarter, declining 13.18% compared to Sensex's fall of 11.36%. The company's current equity is Rs 1,453.65 crore. Face value per share is R…

Steel shares extend rally

Tata Steel surged 7.26% to Rs 762 and Steel Authority of India advanced 6.64% to Rs 200 extend Tuesday's gains on fresh buying Tata Steel saw volumes of 8.92 lakh shares while Steel Authority of India witnessed volumes of 19.02 lakh shares on BSE. Steel shares had gained on Tuesday, 12 February 2008 after reports that steel companies will not roll back prices despite Government intervention. The representatives of the steel ministry had met with steel producers yesterday, 12 February 2008, to seek justification of price hike from the producers. It may be recalled that steel producers had hiked prices by Rs 500 to Rs 1,500 per tonne across various products in early February 2008 following increase in raw material prices. Meanwhile, the Government will be holding a meeting with major steel producers in the next two to three days again to discuss the issue of increase in prices. The Government had termed the price hike by steel companies as unreasonable. A rollback if …

Crompton Greaves gains on acquisition

Crompton Greaves rose 1.27% to Rs 280 at 14:56 IST on BSE after it acquired its joint venture partner's 40% voting share capital in PT Pauwels Trafo Asia, Indonesia, for a sum of $10.70 million The company made this announcement during trading hours today, 13 February 2008. Meanwhile, BSE Sensex was up 203.59 points or 1.23% to 16,811.60. On BSE, 67,267 shares were traded in the counter. The scrip had an average daily volume of 1.77 lakh shares in the past one quarter. The stock hit a high of Rs 293.30 and a low of Rs 276.50 so far during the day. The stock had a 52-week high of Rs 454 on 20 November 2007 and a 52-week low of Rs 172.05 on 28 February 2007. The mid-cap scrip had underperformed the market over the past one month till 12 February 2008, declining 24.46% compared to the Sensex's decline of 19.88%. It had also underperformed the market in the past one quarter, declining 35.62% compared to Sensex's decline of 16.66%. The company's current equit…

Bharat Heavy Electricals towers on Russian foray buzz

Bharat Heavy Electricals surged 4.10% to Rs 1955 at 11:17 IST on BSE on reports that the company is in discussions with a few Russian construction companies for tapping Russia's booming power market Meanwhile, the BSE Sensex was up 451.71 points, or 2.73%, to 17,062.19 tracking firm global markets. On BSE, 49020 shares of the scrip were traded. The stock had an average daily volume of 1.35 lakh shares on BSE in past one quarter. The scrip had touched a high of Rs 1976.70 and a low of Rs 1900 so far during the day. The stock had hit a 52-week high of Rs 2925 on 7 November 2007 and a 52-week low of Rs 970 on 16 March 2007. The scrip had underperformed the market over the past one month till 12 February 2008, declining 22.88% compared to the Sensex's decline of 19.88%. It also underperformed the market in the past one quarter, declining 31.19% compared to Sensex's fall of 16.66%. India's biggest power-equipment maker by sales has an equity capital of Rs 489…

Reliance Money launches UAE operations

DUBAI: Looking to create a customer base of over one lakh customers in the Middle-East, Anil Ambani Group's financial products distribution arm Reliance Money announced the launch of its broking and portfolio management services in the United Arab Emirat es. "This is our first initiative to offer financial services outside India and we plan to tap over 20 million NRIs and resident Indians in Middle-East with this initiative. Our business model is to offer cost-effective, secure products and services to a lar ger section of population and we replicate that model in UAE as well, '' Reliance Money Director and CEO Sudip Bandyopadhyay told reporters here. The brokering firm announced it would start offering its brokering services at 'competitive rates', which could start off a rate war in the UAE financial market. Reliance Money, which had launched its services in India in April last year, had triggered a brokerage rate war by charging a flat fee as a…

Apar Industries spurts on acquisition

Apar Industries jumped 6.81% to Rs 261.05 at 15:08 IST on BSE, after the company said on Monday, 11 February 2008 its board has approved a proposal to acquire a majority stake in Uniflex Cables. The company made this announcement during trading hours yesterday, 11 February 2008, when the stock declined 6.74% to Rs 244.40. Meanwhile, BSE Sensex was down 16.45 points or 0.10% to 16,614.46. On BSE, 2,587 shares were traded in the counter. The scrip had an average daily volume of 13,263 shares in the past one quarter. The stock hit a high of Rs 268.95 and a low of Rs 254 so far during the day. The stock had a 52-week high of Rs 449.80 on 3 January 2008 and a 52-week low of Rs 121.10 on 20 March 2007. The small-cap scrip had underperformed the market over the past one month till 11 February 2008, declining 27.54% compared to the Sensex's decline of 20.15%. It had outperformed the market in the past one quarter, declining 1.71% compared to Sensex's decline of 12.63%. …

Steel stocks strengthen

Shares of three steel producers advanced between 1.37% to 3.48% on reports that they will not roll back prices. Tata Steel (up 1.37% to Rs 736), Steel Authority of India (up 2.65% to Rs 190.75) and JSW Steel (up 3.48% to Rs 1138), advanced. Tata Steel saw volumes of 1.79 lakh shares while Steel Authority of India and JSW Steel witnessed volumes of 6.71 lakh and 1.06 lakh shares respectively on BSE. Meanwhile the BSE Sensex was up 115.85 points or 0.68% to 16,743.80 on positive cues from global markets. The representatives of the steel ministry has reportedly scheduled a meeting with steel producers today 12 February 2008 to seek justification of price hike from the producers. Steel producers had hiked prices by Rs 500 to Rs 1,500 per tonne across various products in early February 2008 following increase in raw material prices. A rollback if it happens after today's meeting would be the second in this financial year. In March 2007, at the behest of the government, t…

Indian Stock Markets Crash - Good Time to Invest

The market fall has been described in many words in papers/websites - freefall, crash, saare zameen par, etc. etc.

Is this a good time to invest?

Firstly, why have the markets fallen so much in 2008? It is due to a combination of factors, the key ones being
the negative global sentiment that is prevailing recent IPO of Reliance Power (which had an overwhelming response) selloffs by FIIs aggressive positions built up in the futures marketOnce a selloff starts and goes beyond a point, then it begins to have a catastrophic effect on the market. Why? Simply because the aggressive positions built up are leveraged positions. Which means that the positions have been built up by borrowing money. There is a margin put up (usually a % of total value) and this margin needs to be maintained by the investor. And this margin is tracked real time.

Beyond a point, the margins become insufficient and further margin calls are made on the investor (by the broker) and also on the broker by…

RURAL ELECRIFICATION CORP IPO DETAILS

REC IPO will opens for subscription on Monday, February 19, 2008. Rural Electrification Corp IPO might help improve the sentiments of the IPO market which is going through a bad phase at the moment. Rural Electrification Corporation IPO price band has been fixed at Rs. Rs. 90 to Rs. 105 per share. With another recent PSU power sector IPO, Power Grid IPO, providing excellent returns for investors, the REC IPO is likely to get a good response from investors. The government of India will dilute about 19% stake in Rural Electrification Corporation (REC) through the IPO. At present 100% stake of REC is owned by the government. Rural Electrification Corporation is a mini ratna company. REC IPO Subscription closes on Friday, February 22, 2008. REC IPO subscription details and REC IPO allotment status will be updated here.

Reliance Power slips into the red despite listing at 21% premium

Mumbai: Choppy market conditions appear to have got better of billionaire Anil Ambani as his Group firm Reliance Power on Monday slipped into negative within minutes of listing at Rs547.80, a premium of 21% over its issue price. The issue had created a phenomenal demand of Rs7,50,000 crore at the close of the IPO last month, thereafter being quoted at the grey market at a premium of Rs450-550 per share, against an issue price of Rs450 each. However, analysts said that it was commendable for the company to hold onto a price of over Rs400 in a turbulent market, that has already seen shelving of two major IPOs -- EmmarMGF and Wockhardt Hospitals last week. Touted as the biggest ever IPO to hit the Indian market, the issue failed to hold on to the investors' interest and the hype that saw the scrip touching a high of up to Rs1,000 a share in the grey market, soon after the listing at the BSE with Anil ringing the customary bell to signal commencement of trade. After touching a l…

India Reliance Power Shares Fall Below IPO Price On Debut

HONG KONG -- Shares of Reliance Power Monday fell below their initial public offering price on debut in Mumbai, although the company's 117 billion rupee-offering ($3 billion), India's largest to date, was subscribed more than 70 times last month. The shares were recently quoted at 418.70 rupees, compared with the IPO price of 450 rupees. Nearly 35 million shares changed hands on the Bombay Stock Exchange

Dividend yield indicates investment value

Dividend yield is an important determinant for investment decisions and stock prices. Generally, an investor has two objectives for investing - one is income from capital appreciation and the other is income from dividends. It is the ability of any stock to give both these incomes, which really determines its market prices on the stock market floor.

Dividend yield refers to the dividend payout with reference to the market price of the stock. It is equivalent to the return on the stock by way of dividends. Dividends are always paid as a percentage of the face value of the share. When the dividend is received, it is computed as a percentage of the current market value of the share and is termed as the dividend yield.

The dividend yield also specifies how much an investor is willing to pay for the expected dividend stream generated by a single share of stock. One may use the expected dividend values over a time period or one may use the historic or past dividend values to ma…

Punj Lloyd: strong buy

An investment can be considered in the stock of infrastructure company Punj Lloyd. A healthy order-book, qualification to bid for larger and complex orders, and steady profit margins excluding one-off expenses suggest strong earnings prospect for the company. The stock is trading at 20 times its expected consolidated earnings for FY 2009. Investors can consider holding the stock with a 2-3 year perspective to benefit from the extended capabilities arising from the acquisition of Sembawang Engineering & Constructions (Semb E&C). Consider buying in lots to take advantage of any weakness linked to the broad markets.Punj Lloyd's consolidated earnings for the quarter ended December 2007 disappointed and led to a sharp reversal in the stock. The company's subsidiary had executed some low-margin legacy orders that resulted in losses of Rs 68 crore being booked due to delays and design changes. The management has stated that the provisions have been made for the en…

15 BEST stocks to add after correction

1. BHEL---AROUND RS1900 2.L&T----RS3400 3.CUBEX TUBING--RS65 4.ECE INDUSTRIES--RS 400 5.GRAUR&WEIL ---RS110 6.IDBI--RS110 7. IFCI--RS50 8.MUDRA PORT&SEZ---RS 750 9.PARSVNATH DEVEOPERS--RS250 10.POWER GRID--RS100 11.RAJESH EXPORTS--RS120 12.CCS INFOTECH--RS 8.50 13.SOUTHERN ONLINE BIO---RS25 14.NTPC--RS190 15.Kohinoor Broadband below 12.00 (21/5) BUY ALL THE SHARES IN TWO OR THREE INSALMENTS