Headlines (08 October 2009)

Date: 08 October 2009

Thought for the day

“One person with a commitment is worth more than 100 people who have only an interest.”

–Mary Crowley

GENERAL

1)Buoyed by the surge in its trade with the United Arab Emirates (UAE), which has touched an astounding $44.5 billion, New Delhi is looking at substantiating its ties with Abu Dhabi to cover areas such as defence and nuclear energy.
 
Hindu

ECONOMY

 2)THE Indian economy would grow at least 7% in the current financial year, according to Suresh Tendulkar, former chairman of the Prime Minister’s Economic Advisory Council (PMEAC). “Clearly, there is a problem about monsoon. But other sectors, services and manufactu- ring, are showing signs of improvement. I think, we should be able to clock at least 7%,” he said on the sidelines of a function hosted by the SME Chamber of India.

ET

CORPORATE / INDUSTRY

 3)THE stage is set for yet another bidding war for ownership of an overseas resource company. Essar Group’s Essar Minerals and the Delhi-based Jindal Steel & Power, are in race to acquire Perth-based coal and coke producer Rocklands Richfield, that will increase their ownership of key resources and lower production costs in their businesses.

ET

4)Government-owned Bharat Heavy Electricals Ltd(BHEL) is looking at Africa for setting up its first manufacturing facility abroad. The company had earlier zeroed in on the UAE, but decided to locate the plant in Africa.

BS

5)Tata Steel has reported a 19% rise in sales in the second quarter ended September 2009, in line with improved steel consumption across the country. One of the country’s largest private steel producers saw sales cross 1,456,000 tonne in the second quarter of 2009-10 compared to 12,20,000 tonne in the previous corresponding period.

ET

 6)APPAREL major Raymond which had recently restructured its 50:50 JV with Belgian denim major UCO NV, due to the global recession, is now seeing a revival of fortunes. The joint venture – Raymond UCO Denim – is hopeful the Christmas-New Year sales will further boost performance.

ET

MONEY & BANKING

 7)The rupee extended its gains for the fourth consecutive trading session, appreciating by 22 paise against the dollar on Wednesday. The domestic currency opened at 46.84 and strengthened to touch an intra-day high of 46.49. It gave up some of its gains to close at 46.66 as against the previous close of 46.88. The rupee had last touched 46.65 levels in the first week of June this year.

BL

8)Credit offtake continues to be a matter of disappointment for the domestic banking industry. There has been a further slackening in the demands of credit growth, according to a data released by the Reserve Bank of India(RBI) on Wednesday. Credit growth has further dipped to 12.62% for the fortnight ending September 25,2009, as against 13.24% recorded on September 11, 2009. At the same time, deposit growth has also witnessed a drop to 19.79% during the period from 20.19% recorded on the previous fortnight.

FE

9)The turnover in the currency futures segment in the MCX’SX touched a record high of Rs 10,798 crore on Wednesday. Currency dealers attributed this sharp spike in volume to high amount of volatility in over-the-counter (OTC) market. On the other hand, the NSE currency futures segment clocked a turnover of Rs 7,985 crore with a total volume of 16.92 lakh contracts.

FE

MARKETS

 10)Equity indices witnessed huge volatility throughout trading session and ended the day on negative terrain, on the back of intense selling in the technology stocks. The 30-share Sensex of the Bombay Stock Exchange lost 151.88 points or 0.90% to close at 16,806.66 points. The Nifty of the National Stock Exchange was down by 41.65 points. or 0.83% and ended the day below the 5,000 mark at 4,985.75 points.

FE

IPO / FPO

 11)NTPC, the country’s largest power producer, is all set to hit the market with its follow on public offer in January 2010. The offer involve government offering 5% of its equity in the company into the market. The move is part of the United Progressive Alliance(UPA) government’s disinvestment programme, under which it intends to sell minority stake in select public sector undertakings.

ET

 12)Private sector insurer Reliance Life insurance on Wednesday said it is planning to file draft prospectus for initial public offer with the market regulator Sebi in the last quarter of the current fiscal subject to regulatory approval.

FE

 13)Indiabulls Power, a subsidiary of Indiabulls Real Estate, plans an initial public offering of Rs 1,758 crore which will include a green shoe option of Rs 229 crore. In terms of total shares, this will mean offloading 39.07 crore shares at a price band of Rs 40-45. The green shoe component comprises 5.09 crore shares. The issue will open on October 12 and close on October 15 and is being lead managed by Morgan Stanley India.

BL

BONUS SHARE

14)In a big Diwali gift for its shareholders, the Reliance Industries board today recommended one bonus share for every share held and a dividend of Rs 13 a share. The announcements are subject to share- holders’ approval. The last time India’s largest private sector company gave bonus shares to its shareholders was 12 years ago. This year, 39 companies have so far announced bonus shares. Before RIL, Indian Corporation had announced a 1:1 bonus issue last month.

BS

MUTUAL FUNDS

 15)Fidelity Mutual Fund is launching a new feature Auto Switch for its funds which allows investors to automatically switch in to and switch out of Fidelity’s equity funds based on pre-set entry and exit trigger levels. With the Auto Switch – Entry Facility, investors can invest in any of Fidelity’s fixed income funds and switch in to any Fidelity’s equity funds at pre-set BSE Sensex levels. Conversely, the new facility allows investors to switch in to fixed income funds, the appreciation of their investments in equity funds or the appreciation plus the principal at pre-set NAV levels.
 
Indian Express

COMMODITIES

 16)Gold shot to a record high on Wednesday, topping the previous day’s gains, as dollar weakness and mounting worries about potential inflation enticed more investors toward the precious metal. Spot gold hit a historic $1,048.20 an ounce and was at $1,041.95 an ounce by 1200 GMT, versus $1,040.85 quoted late in New York on Tuesday.

BL

17)Gold prices on Wednesday spurted by Rs 160 per 10 gm on the bullion market in New Delhi, while silver touched one-year high of Rs 27,000 a kg on strong global cues as dollar continued to fall against major currencies, boosting the appeal of the metals as safer investment option.

BS

REAL ESTATE

 18)DELHI-based Ansal Properties and Infrastructure (API) is in talks with at least two private equity firms – Red Fort India Real Estate Fund and Bahrain-based Investate Realty – to raise up to $100 million(Rs 475 crore) through equity stake sales in two projects, two people close to the situation said.

ET

COMMUNICATIONS

19)Barely a week after talks with South Africa’s MTN failed, the country’s largest telecom operator Bharti Airtel on Wednesday said it may bid to acquire Luxembourg-based telecom firm Millicom’s operations in Sri Lanka. “We are considering it… that much I can say,” Bharti Airtel’s CEO Manoj Kohli said on the sidelines of a seminar.

FE

INFORMATION TECHNOLOGY

20)INDIA’S largest software services exporter Tata Consultancy Ser vices(TCS) is evaluating its currency hedging strategy as the rupee has appreciated sharply against the dollar in the past two days, a top company executive said on Wednesday. Domestic IT companies are mostly dependent on export earnings in dollar terms. Any weakness in the US dollar against the rupee leads to an adverse impact on their revenues.

ET

21)IT services firm Mahindra Satyam is stitching a joint-go-to-market strategy with Vision Solutions, a world-wide provider of disaster recovery(DR) and other solutions, to bolster revenues. The company on Wednesday announced that it has entered into a global alliance with Vision Solutions, hoping to tap the multi-million dollar business in disaster recovery other solutions meant to ensure non-stop operations of systems on an IBM platform. The value-added-services will be on offer to Mahindra Satyam’s clients which include Fortune 500 firms to help them save potential business losses of over a million dollars an hour in the event of any major disaster like a Tsunami.

ET

INTERNATIONAL

22)Indian-origin scientist Dr Venkatraman Ramakrishnan shares the Nobel Prize in Chemistry this year with Dr Thomas A. Steitz and Dr Ada E.Yonath, it was announced in Stockholm on Wednesday. The Royal Swedish Academy of Sciences said the Nobel Prize in Chemistry for 2009 awards studies of one of life’s core processes: The ribosome’s translation of DNA information into life. Ribosome produces proteins, which in turn control the chemistry in all living organisms. As ribosomes are crucial to life, they are also a major target for new antibiotics.

BL

23)Oil prices rose for the third straight day on Wednesday, to about $71 a barrel, after an industry report showed a drawdown in US crude inventories and gave support to the view that demand was recovering.

BS

24)Mammoth IPOs by the Brazilian unit of Spanish bank Banco Santander and the US risk specialist Verisk Analytics Inc raised nearly $10 billion on Tuesday, almost twice the amount raised by US-listed IPOs in 2009. Banco Santander (Brasil) SA raised $8.05 billion, after selling 600 million units for 23.5 reais each, within the estimated range.

BS

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
Business Standard www.business-standard.com
The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com

Today’s Levels (08-10-2009)

(Last Close : Sensex 16807 : Nifty 4986)

Today’s Levels

Trade long if Sensex sustains above 16807 (Nifty 4986)
[Upper targets/resistances at 16865(5000)/16972(5031) or higher]

Trade short if Sensex fails to sustain above 16865 (Nifty 5000)
[Lower targets/supports at 16807(4986)/16700(4950) or lower]

FOR THE DAY (08-10-2009)

FOR THE DAY:

The indices are expected to open on a flat to positive note tracking mixed global indices.

Trade short if Nifty fails to sustain 5030 levels, stop loss placed at 5050 for the targets of 5000-4950.

Alternatively, trade long if Nifty holds 5050 levels with stop loss placed at 5030 levels targeting 5080 and 5100.

Pivot Point (08-10-2009)

08/10/2009 Pivot Point NSE
Symbol   LTP S3 S2 S1 Pivot Point R1 R2 R3
ABB 790.20 744.97 766.87 778.53 788.77 800.43 810.67 832.57
ACC 790.55 751.18 772.98 781.77 794.78 803.57 816.58 838.38
AMBUJACEM 97.70 93.90 95.90 96.80 97.90 98.80 99.90 101.90
AXISBANK 980.65 913.82 951.72 966.18 989.62 1004.08 1027.52 1065.42
BHARTIARTL 358.75 324.12 341.42 350.08 358.72 367.38 376.02 393.32
BHEL 2453.55 2283.18 2375.98 2414.77 2468.78 2507.57 2561.58 2654.38
BPCL 553.95 511.55 535.45 544.70 559.35 568.60 583.25 607.15
CAIRN 260.65 250.20 255.95 258.30 261.70 264.05 267.45 273.20
CIPLA 281.75 265.75 273.25 277.50 280.75 285.00 288.25 295.75
DLF 413.90 385.13 400.83 407.37 416.53 423.07 432.23 447.93
GAIL 364.05 340.63 354.08 359.07 367.53 372.52 380.98 394.43
GRASIM 2452.00 2234.57 2355.47 2403.73 2476.37 2524.63 2597.27 2718.17
HCLTECH 309.20 277.10 294.80 302.00 312.50 319.70 330.20 347.90
HDFC 2727.50 2570.25 2647.30 2687.40 2724.35 2764.45 2801.40 2878.45
HDFCBANK 1677.70 1605.90 1645.90 1661.80 1685.90 1701.80 1725.90 1765.90
HEROHONDA 1639.70 1371.18 1524.83 1582.27 1678.48 1735.92 1832.13 1985.78
HINDALCO 127.05 119.77 123.72 125.38 127.67 129.33 131.62 135.57
HINDUNILVR 280.20 262.55 271.20 275.70 279.85 284.35 288.50 297.15
ICICIBANK 918.40 848.40 888.60 903.50 928.80 943.70 969.00 1009.20
IDEA 63.95 57.92 61.32 62.63 64.72 66.03 68.12 71.52
IDFC* 152.00 139.48 146.53 149.27 153.58 156.32 160.63 167.68
INFOSYSTCH 2252.75 2067.08 2168.18 2210.47 2269.28 2311.57 2370.38 2471.48
ITC 244.95 230.38 238.78 241.87 247.18 250.27 255.58 263.98
JINDALSTEL 598.80 575.27 588.27 593.53 601.27 606.53 614.27 627.27
JPASSOCIAT* 238.00 218.72 227.97 232.98 237.22 242.23 246.47 255.72
LT 1677.25 1568.75 1630.15 1653.70 1691.55 1715.10 1752.95 1814.35
M&M 892.30 820.68 861.23 876.77 901.78 917.32 942.33 982.88
MARUTI 1540.60 1399.93 1481.33 1510.97 1562.73 1592.37 1644.13 1725.53
NATIONALUM^ 340.30 315.43 328.83 334.57 342.23 347.97 355.63 369.03
NTPC 209.00 204.77 207.07 208.03 209.37 210.33 211.67 213.97
ONGC 1183.05 1135.18 1161.88 1172.47 1188.58 1199.17 1215.28 1241.98
PNB 827.80 750.10 788.00 807.90 825.90 845.80 863.80 901.70
POWERGRID 108.80 104.85 107.00 107.90 109.15 110.05 111.30 113.45
RANBAXY 399.30 357.93 381.43 390.37 404.93 413.87 428.43 451.93
RCOM 261.40 238.80 251.80 256.60 264.80 269.60 277.80 290.80
RELCAPITAL 908.90 861.13 887.03 897.97 912.93 923.87 938.83 964.73
RELIANCE 2101.30 1966.67 2040.57 2070.93 2114.47 2144.83 2188.37 2262.27
RELINFRA 1268.90 1167.55 1225.30 1247.10 1283.05 1304.85 1340.80 1398.55
RPOWER 161.05 151.85 157.15 159.10 162.45 164.40 167.75 173.05
SAIL 171.50 156.02 163.37 167.43 170.72 174.78 178.07 185.42
SBIN 2101.70 1918.73 2022.23 2061.97 2125.73 2165.47 2229.23 2332.73
SIEMENS 555.85 523.75 541.55 548.70 559.35 566.50 577.15 594.95
STER 815.70 717.23 762.03 788.87 806.83 833.67 851.63 896.43
SUNPHARMA 1414.40 1343.37 1382.27 1398.33 1421.17 1437.23 1460.07 1498.97
SUZLON 85.30 76.80 81.70 83.50 86.60 88.40 91.50 96.40
TATACOMM^ 471.10 441.18 455.63 463.37 470.08 477.82 484.53 498.98
TATAMOTORS 558.30 523.27 542.77 550.53 562.27 570.03 581.77 601.27
TATAPOWER 1293.00 1248.33 1270.73 1281.87 1293.13 1304.27 1315.53 1337.93
TATASTEEL 516.90 488.37 503.37 510.13 518.37 525.13 533.37 548.37
TCS 591.70 539.25 569.50 580.60 599.75 610.85 630.00 660.25
UNITECH 98.65 90.72 95.22 96.93 99.72 101.43 104.22 108.72
WIPRO 572.20 515.70 549.20 560.70 582.70 594.20 616.20 649.70
                 
* NEW ENTRY FROM 20 OCT 2009
^ TO BE REPLACED FROM 20 OCT 2009

Support & Resistances for 08-10-2009

Support & Resistances for 08-10-2009
 
    SENSEX NIFTY FUTURE (Oct 2009)
    BANKNIFTY NIFTY
08/10/2009 Open  17069.42 5031.70 8890.00 5070.00
High 17120.56 5077.00 8963.00 5080.00
Low 16764.07 4972.95 8710.00 4964.30
Close 16806.66 4985.75 8738.95 4975.90
LTP 16806.66 4985.75 8720.10 4974.85
Range 356.49 104.05 253.00 115.70
07/10/2009 R3 17610.08 5220.00 9309.98 5238.13
R2 17253.59 5115.95 9056.98 5122.43
R1 17030.12 5050.85 8897.97 5049.17
PP 16897.10 5011.90 8803.98 5006.73
S1 16673.63 4946.80 8644.97 4933.47
S2 16540.61 4907.85 8550.98 4891.03
S3 16184.12 4803.80 8297.98 4775.33
 
R1/R2/R3: Resistance
PP: Pivot Point
S1/S2/S3: Supports