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Showing posts from April 13, 2008

Cash reserve ratio hiked by 50 basis points

Reserve Bank move likely to suck out Rs 18,500 crore "There will definitely be an upward pressure on interest rates. We have to take a call on what the impact of this CRR hike would be on our funding cost as well as deposit rates." Our Bureau Mumbai, April 17 Ending days of speculation, the Reserve Bank of India on Thursday hiked the cash reserve ratio by 50 basis points or 0.5 percentage point to eight per cent, as a measure to contain inflation which has been ruling above seven per cent in the past few weeks. Cash reserve ratio or CRR is the portion of deposit banks are required to keep with the RBI. The RBI action, which was expected, could see an upward pressure on interest rates, said analysts. The hike which has come nearly a fortnight ahead of the RBI's annual monetary policy announcement scheduled on April 29, is expected to suck out Rs 18,500 crore from the system. The increase will be in two stages (25 basis points each); the first from April 26 an…

Reliance Petroleum speeds up

Reliance Petroleum rose 1.54% to Rs 187.60 after the company said its 5.80 lakh barrel a day export-oriented refinery at Jamnagar, Gujarat would be completed ahead of its schedule start of December 2008. OnThe stock hit a high of Rs 190 and low of Rs 186.05 so far during the day. The stock had a 52-week high of Rs 295 on 1 November 2007 and a 52-week low of Rs 73.90 on 16 April 2007. The large-cap scrip had has outperformed the market over the past one month till 16 April 2008, gaining 22.29% compared to the Sensex's return of 9.51%. It also outperformed the market in the past one quarter, declining 14.10% compared to Sensex's decline of 17.55%. From a recent low of Rs 156.25 on 31 March 2008, the stock has gained 18.30% to Rs 184.85 on 16 April 2008, ahead of the news The company's current equity is Rs 4500 crore. Face value per share is Rs 10. Promoters held 75.38% stake in the company (as at end December 2007). In an announcement made after trading hours y…

Reliance Petroleum - Media Release

Reliance Petroleum Ltd (RPL) has announced that the Company has marched ahead rapidly during the quarter and achieved 90% overall progress in implementation of its complex refinery, coming up in a Special Economic Zone at Jamnagar. RPL has mobilised sufficient site infrastructure to sustain construction on fast track even in the coming quarters. RPL expects to complete the refinery ahead of schedule. During the quarter, RPL surpassed several significant milestones, including completion of engineering, procurement and contracting activities, near completion of equipment deliveries and rapid progress on equipment installations at site. The significant milestones achieved during the quarter include the following:• Overall procurement progress at 99%; Activity in the close-out mode already.• Deliveries and installation of over dimensional cargos (ODC) and super ODCs completed.• Overall construction progress nearing 80% mark for the complex.• Start-up planning and operations p…

corporate news

Punj Lloyd (Rs 331.15): Buy

We recommend a buy in Punj Lloyd from a short-term perspective. It is evident form the charts of Punj Lloyd that it had been on a medium-term downtrend from its January 2008 high of Rs 589 to its March low of Rs 286. The stock's medium-term downtrend got arrested recently at Rs 300.Gradually, the stock breached the medium-term down trendline and began to move up. On April 11, the stock jumped 4 per cent penetrating the 21-day moving average, accompanied with good volumes. The daily momentum indicator is rising towards the bullish zone in the neutral region. The weekly momentum indicator appears to have found support at 40 levels and has begun to move upwards. We are bullish on the stock from a short-term point of view. We expect the stock to move up to our price target of Rs 380 in the short-term. Investor with short-term perspective can buy the stock while keeping the stop-loss at Rs 310.

hyderabad real estate is slow down

Please read the headline today in Eenadu(04/15/2008) saying about the realestate market slowdown. I would say this slowdown is well anticipated and expected as the growth was some what unbelievable.

In addition to all the causes explained in the article, lifting the urban land ceiling might also be one of the reasons. As I have been writing from past 2 years, that realestate market will slowdown and prices will come down during the election time as there is uncertainity in the politiclal situation, big shots may want to cash out to fight elections/finish the irrigation projects etc.

How ever, I believe that if some one is investing for long term, they should consider this as opportunity than getting scared away as one will be finding good bargains. Please follow the link or find 04/15/2008's Eenadu to read the article in detail.

http://eenadu.net/panelhtml.asp?qrystr=htm/panel1.htm

This article lists the following reasons for the current slowdown in Hyderabad.
Real estate s…

Stock split proposal generates interest in Motilal Oswal Financial Services

Motilal Oswal Financial Services jumped 5.71% to Rs 695.05 at 10:18 IST on BSE after the company scheduled a board meet on 21 April 2008 to consider stock split proposal. The company made this announcement after market hours on Friday, 11 April 2008. Meanwhile the BSE Sensex was down 39.98 points or 0.25% to 15,774.53 On BSE, 12751 shares were traded in the counter. The scrip had an average daily volume of 22344 shares in the past one quarter. Motilal Oswal Financial Services (MOFSL) scrip had scaled a 52-week high of Rs 2270 on 4 January 2008. The scrip had touched a 52-week low of Rs 515 on 24 March 2008. The mid-cap scrip had outperformed the market over the past one month till 11 April 2008, gaining 5.05% compared to the Sensex's return of 2.93%. However it underperformed the market in the past one quarter, declining 66.02% compared to Sensex's decline of 24.10%. The company's current equity is Rs 14.20 crore. Face value per share is Rs 5. MOFSL report…

Enhancing value--buyback of shares

Priya Kansara / Mumbai April 14, 2008A host of companies have announced share buyback plans to improve shareholder value. The Smart Investor takes a look at these offers and what they mean for companies and their shareholders. While the markets may seem trapped in a quagmire after tanking nearly 25 per cent since the peak in mid-January, many stocks have lost as much as 50 per cent of their values during this period. Participation from investors, large or small, domestic or foreign, has also reduced substantially. Thus, considering the grim scenario, a large number of companies, irrespective of their scale or size, have announced buybacks since the beginning of 2008. While the biggest motive is to support their respective stock price and avoid hostile takeovers, another reason could be to pep up shareholder sentiments and utilise the surplus cash or investments. The current trend is perhaps more to do with the downt…

2008 will be a great year for Indian market: Macquarie

MUMBAI: Unfazed by the stock market volatility, leading financial institution Macquarie says 2008 could still turn out to be a great year for the Indian investors, who should stay put.

"India is now too important a market to ignore and we recommend investors to stay invested in the market. We think that 2008 has the possibility of being a great year for the Indian market," Macquarie said in its first edition of Asia Equity Guide 2008.

The Bombay Stock Exchange's benchmark, Sensex, has slipped 4,000 points within a gap of two months taking global cues. Rise in crude prices, a fear of recession in the US and large-scale selling by FIIs had contributed to the fall.

Analysing top 300 Asian stocks, the report does not see threats emanating from global fears that may possibly impact the growth story of India.

"We believe that India will be in a sweet spot in 2008, with strong growth accompanied by falling interest rates. India is also a strong relative pl…

Experts see mkts at 18k in medium-term

SV Prasad of Schroders said the markets can move higher from here. "The worst may be behind us. The liquidity position has improved, especially in the money market." Investors need to look at extent of forex losses in Q4 results, he said. Gautam Shah of JM Financial Services said the Sensex could go beyond the 18,000 levels over the medium-term. "Emerging markets, Dow Jones looking very good on charts, which is a positive for India. The markets are likely to come out of consolidation range in 2-3 weeks. The Nifty is likely to cross 5,000 in the near-term and then go up to 5,300." He feels it is a good time to buy. "The Sensex and Nifty may have seen the worst at 14,700 and 4,450 respectively." Excerpts from CNBC-TV18's exclusive interview with SV Prasad and Gautam Shah:Q: We have had a bad inflation number and decent IIP number, do you think we can digest all this and move further higher in the near-term?Prasad: I think so. Perhaps the wo…

BHEL Ranipet eyes Rs 2,000 crore turnover this fiscal

Bharat Heavy Electricals Limited (BHEL), Ranipet in Vellore district, has projected a turnover of Rs 2,000 crore during the current financial year 2008-09.AV Krishnan, general manager, in charge of the boiler auxiliaries plant, said the PSU had been logging 30 per cent growth and was targeting a profit before tax of Rs 300 crore this year.The Ranipet unit has undertaken a Rs 117.42-crore modernisation and expansion, which would be completed by December 2009.Post modernisation, the company's installed capacity would increase to 15,000 Mw from 10,000 Mw now.It currently has about 300 sub-contractors. Krishnan said a few entrepreneurs from Krishnagiri, Dharmapuri and Salem had evinced interest in supplying components.Earlier, addressing the media he said Ranipet's operations reported an all-time high turnover of Rs 1,415.25 crore in the year 2007-08, up 13 per cent over last y…