Markets Today

The markets ended the day on a strong note with buying seen in scrips across sectors. Capital goods, banking, IT, cement and sugar stocks were among the top gainers. The broader markets did extremely well during the day as well as week giving markets an excellent breadth. The turnover was brisk. Except for metal, all the sectoral indices closed in green.
Sensex was up 145.94 points or 1.01% at 14650.51, and the Nifty up 36.30 points or 0.85% at 4318.3.
About 1452 shares have advanced, 1091 shares declined, and 89 shares are unchanged.
On a weekly basis, Sensex was up nearly 1.2% and Nifty was up 1.5%. Even on a weekly basis banking index gave a standout performance.
RPL was up 15%, ACC was up 9% and Suzlon was up 8% were among the top gainers during the week.
The BSE Midcap Index ended at 6,527.03 up 69.03 points or 1.07%.
The BSE Smallcap Index ended at 7,730.40 up 68.30 points or 0.9%.
The BSE Bankex was up 2.9% at 8,009.94. Oriental Bank, PNB, Kotak Mahindra, Andhra Bank, HDFC Bank, UTI Bank moved upwards.
The BSE Capital Goods Index was up 1.9% at 12,299.36. Triveni Engg, ABB, Kirloskar Oil, BHEL, Punj Lloyd, Larsen, Praj Industries closed higher.
The BSE Health Care Index was up 1% at 3,805.70. Nicholas Pirama, Cipla, Panacea Biotech, Aurobindo Pharm, Sterling Bio closed higher.
The BSE Auto Index closed at 4,739.57up 0.5%. Exide Industrie, Mah and Mah, Bajaj Auto, Escorts.
The BSE FMCG Index gained 0.35% at 1,829.33. United Spirits, Godrej Consumer, Tata Tea, Britannia closed higher.
BSE Oil and Gas Index closed at 7,626.66 up 0.4%. Reliance Natura, Essar Oil, Petronet LNG, HPCL ended in green.
The BSE IT Index closed at 4,870.73 up 0.6%. Financial Tech, I-Flex Solution, Mphasis, Patni Computer closed higher.
The BSE Metal Index closed at 10,605.00 down 0.3%.
The NSE cash turnover was at Rs 10661.63 crore and the NSE F&O turnover was at Rs 35463.65 crore. The BSE cash turnover was Rs 4820.88 crore. Total market wide turnover was at Rs 50946.16 crore.

Source: moneycontrol.com

Intraday Calls for 29th June

Nifty: Supports are 4260, 4230 and Resistance are 4292, 4300
Sensex: Supports is 14400 and Resistance are 14550, 14575.

Market opens flat to positive, some profit booking can be seen but remain flat.

Buy Eastern Silk @ Rs. 300/- Target Rs. 310+ SL Rs. 294/-
Buy Premier Explosive @ Rs. 55/- Target Rs. 58-60/- SL Rs. 52/-
Buy Moser Baer @ Rs. 455/- Target Rs. 465-470/- SL Rs. 450/-
Buy NDTV @ Rs. 420/- Target Rs. 430+ SL Rs. 415/-
Buy Mysore Cement @ Rs. 53/- Target Rs. 60/- SL Rs. 50/-

Others Are RNRL (36), Lok Housing (147), Unitech (495), Subhash Projects (232), Ceturty Textiles (676),

Markets Today

The markets closed in the positive terrain on the triple witching day on high turnover. It was trading flat for major part of the day but gained some strength in the last leg. In terms of cues Asia ended strong and Europe was trading with good gains.
Cement stocks were the star performers in today's trading session. Power, banking and telecom stocks ended higher. However select auto, metal, and heavyweight ONGC ended weak. Nifty June series ended flat. Broader markets were trading strong and held out their gains.
New listing Meghmani Organics ended up 39% at Rs 26.40 versus issue price of Rs 19.
Sensex was up 73.51 points or 0.51% at 14504.57, and the Nifty up 18.05 points or 0.42% at 4282.
About 1406 shares have advanced, 1125 shares declined, and 73 shares are unchanged.
Major gainers in the midcap space were Kesoram up 8.95%, JK Cement up 8.26%, India Cements up 7.83%, Hind Constr up 7.59%, Alembic up 6.72%, Alstom Projects up 6.23%, IndusInd Bank up 5.52%.
Cement stocks saw good rollover, aggregate of around 75%. Kesoram saw rollover of 80%, followed by India Cement and Ambuja Cement.
Top gainers on the Sensex were ACC up 8.7%, Ambuja Cements up 8% and HDFC up 5.4%.
The BSE Midcap Index ended at 6,458.00 up 33 points or 0.53%.
The BSE Smallcap Index ended at 7,662.10 up 48.26 points or 0.6%.
The BSE Bankex was up 0.4% at 7,786.72. Canara Bank, Bank of India, Centurion BoP, SBI, Kotak Mahindra moved upwards.
The BSE Capital Goods Index was up 0.7% at 12,071.55. ABB, Alstom Projects, Areva T&D, AIA Engineering, Kirloskar Oil closed higher.
The BSE Health Care Index was down 0.4% at 3,765.87.Sterling Bio, Novartis India, Divis Labs, Cadila Health, Wockhardt, Nicholas Pirama closed lower.
The BSE Auto Index closed at 4,714.18 down 0.7%. Punj Tractors, Hind Motors, Escorts, Mah and Mah, Bajaj Auto declined.
The BSE Metal Index closed at 10,634.50 down 0.5%. Shree Precoated, Jindal Steel, JindalStainless, Sterlite Ind advanced lower.
The BSE FMCG Index gained 0.35% at 1,822.70. Godrej Consumer, Tata Tea, Dabur India, ITC closed higher.
BSE Oil and Gas Index closed lower at 7,599.15 down 0.2%. ONGC, Essar Oil, Petronet LNG, Reliance ended in red.
The BSE IT Index closed flat at 4,841.62. I-Flex Solution, Infosys, Tech Mahindra closed lower.
The NSE cash turnover was at Rs 12159.15 crore and the NSE F&O turnover was at Rs 60499.6 crore. The BSE cash turnover was Rs 4818.73 crore. Total market wide turnover was at Rs 77477.48 crore.
Source: moneycontrol.com

Intraday Calls for 28th June

Nifty: Supports are 4250, 4230 and Resistance are 4275, 4290.
Sensex: Supports are 14400, 14330 and Resistance is 14500.

Market should open positive and remain positive.

Buy Prithvi Info @ Rs. 302/- Target Rs. 315-320/- SL Rs. 295/-
Buy Nelcast @ Rs. 208/- Target Rs. 220/- SL Rs. 204/-
Buy Bajaj Hindustan @ Rs. 152-155/- Target Rs. 160/- SL Rs. 148/-
Buy BOB @ Rs. 260/- Target Rs. 265/- SL Rs. 256/-
Buy Sasken Communication @ Rs. 465/- Target Rs. 475-480/- SL Rs. 460/-
Buy Orbit Corp @ Rs. 280/- Target Rs. 285-290/- SL Rs. 275/-

Others are: RNRL(35), Reliance (1698), Euro Ceramics (161), XL Telecom (124), Solar Explosive (175), Avery India (70).

Important

I will not post intraday calls for 7 days because today I am going to Mumbai for a week.
Yesterday was my son's first birthday so I couldn't post.
Sorry for that.
Thanks.

Markets Today

It was a strong seesion for markets and they closed near the highest point of the day. Sensex ended with gains of around 200 points above 14,200 and the Nifty was up over 55 points above 4,150 levels.

The gain was inline with global markets. Asia ended strong most of the Asia ended up 1% and even Europe opened strong. Buying was seen in scrips across sectors. The midcaps and the smallcap outperformed the frontline indices. Nifty discount futures had widened at around 14 points. The market breadth was positive but the volume was relatively low.

There was lot of stock specific action. Nicholas Piramal ended up 6% on the back of news that it is examining possibility of hiving off R&D biz

HDFC, Tata Steel, Bharti Airtel, ACC, SAIL and Siemens are among the top gainers.

In the midcap space Aarti Ind up 20%, Mic Electronics up 15%, Hilton Metal up 13%, ICRA 11%.

Infosys, Reliance, Icra, Time Techno, Sun Pharma and Unitech are among the most active stocks on indices.

9.9 lakh TVS Motor shares change hands on NSE at Rs 65/share and the stock is up 4%.

DLF IPO has closed and it was subscribed 2.57 times till now, 87% bids at Rs 550/sh.

Sensex was up 200.69 points or 1.43% at 14203.72, and the Nifty up 56.95 points or 1.38% at 4170.
About 1662 shares have advanced, 763 shares declined, and 88 shares are unchanged.
The BSE Midcap Index ended at 6,161.61 up 96 points or 1.6%.

The BSE Smallcap Index ended at 7,320.91 up 97 points or 1.34%.

The BSE Bankex was up 0.7% at 7,417.66. Andhra Bank, Bank of Baroda, Bank of India, Federal Bank moved upwards.

The BSE Capital Goods Index was up 2.3% at 10,972.02.Alstom Projects, Astra Microwave, AIA Engineering, Siemens, Areva T&D, L&T closed higher.

The BSE Health Care Index was up 1.2% at 3,793.43. Nicholas Piramal, Aurobindo Pharm, Biocon, Ranbaxy Labs, Novartis India, Cadila Health closed higher.

The BSE Auto Index closed at 4,667.35 up 0.8%. TVS Motor, Ashok Leyland, Escorts, MICO, Amtek Auto surged.

The BSE Metal Index closed at 10,567.54 up 2.8%. JSW Steel, SAIL, Sesa Goa, Mah Seamless, Tata Steel advanced higher.

The BSE FMCG Index gained 0.4% at 1,780.67. United Brewerie, United Spirits, Bata India, Colgate, Tata Tea closed higher.

BSE Oil and Gas Index closed higher at 7,492.62 up 1.3%. Petronet LNG, Reliance Natura, ONGC, Reliance Petro ended in green.

The BSE IT Index gained 1.4% at 5,033.76. Patni Computer, I-Flex Solution, Infosys, Mphasis closed higher.

The NSE cash turnover was at Rs 8370.04 crore and the NSE F&O turnover was at Rs 28760.54 crore. The BSE cash turnover was Rs 4407.78 crore. Total market wide turnover was at Rs 41538.36 crore.

Source: moneycontrol.com

Intraday Calls for 14th June

Nifty: Support is 4100 and Resistance are 4150, 4200.
Sensex: Supports are 14000, 13970 and Resistance are 14120, 14200

Market opens Positive, Remain Positive and Close with nice gain.

Buy Reliance Industries @ 1675/- Target Rs. 1700-1720/- SL Rs. 1670/-
Buy RCOM @ Rs. 486/- Target Rs. 500/- SL Rs. 482/-
Buy BRFL @ Rs. 212/- Target Rs. 220-225/- SL Rs. 208/-
Buy Indiabulls @ Rs. 522/- Target Rs. 530-540/- SL Rs. 518/-
Buy Rain Calsning @ Rs. 42/- Target Rs. 45/- SL Rs. 39/-
Buy Wyeth Ltd. @ Rs. 560/- Target Rs. 575-580/- SL Rs. 552/- (300% Dividend)
Buy Carborundum Universal Ltd. @ Rs. 170/- Target Rs. 180+ SL Rs. 165/-

Others are: Infosys (1982), Bank of Baroda (248), IFCI (47), IDEA (111), IDBI (98), GTL (222), Nitin Fire (380), Renuka (613).

Good Luck.

Markets Today

The markets closed on an extremely weak note near the lowest point of the day. Sensex slipped below the 14,000 mark and the Nifty was hovering around the 4,100 levels. In terms of cues Asia was subdued except for China's Shanghai Composite which ended up around 2.5%.
Smallcap & midcaps which were holding out their gains till noon ended in red giving market an extremely negative breadth.
Oil marketing companies, telecom, banking stocks took it on their chin.However select pharma, IT and real estate stocks were relative ouperformers.
Time Technoplst closed with 56% premium despite weak markets.
The BSE Small Cap Index closed at 7,224.27 down 0.06%.
The BSE Midcap Index ended at 6,065.63 down 0.31%.
The BSE FMCG Index closed at 1,772.80 down 1%. Tata Tea, Britannia, HLL, United Spirits closed in red.
The BSE Metal Index was down 0.8% to close at 10,275.27. Shree Precoated, SAIL,Tata Steel, Hind Zinc, Jindal Saw were among the losers.
The BSE Health Care Index was up 0.23% at 3,739.84. Wyeth, Orchid Chemical, Dr Reddys Labs, Nicholas Pirama, Sun Pharma closed higher.
The BSE Capital Goods Index was down 1.22% at 10,724.38. ABB, Suzlon Energy, Triveni Engg, Alstom Projects, L&T, Reliance Infra ended lower.
The BSE Auto Index closed at 4,628.54 down 0.30%. Amtek Auto, Bharat Forge, Escorts, TVS Motor, Hero Honda among the losers
The BSE IT Index closed at 4,966.87 down 0.2%. Patni Computer, Wipro, Tech Mahindra, TCS, Infosys ended weak.
The BSE Bankex was down 1.14% at 7,453.52. SBI, Bank of India, Oriental Bank, Kotak Mahindra, Bank of Baroda closed lower
The BSE Oil and Gas Index closed at 7,397.36 down 1.3%. BPCL, GAIL, HPCL, Reliance, IOC closed in red.
The NSE cash turnover was at Rs 8086.05 crore and the NSE F&O turnover was at Rs 34009.31 crore. The BSE cash turnover was Rs 4169.31 crore. Total market wide turnover was at Rs 46264.67 crore.

Source: moneycontrol.com

Intraday Calls for 13th June

Nifty: Supports are 4140, 14100 and Resistance are 4175, 4190.
Sensex: Support is 14000 and Resistance are 14150, 14200.

Today Market will looks weak in 1st half but some recovery can be seen in second half and may close flat. High volatility contineous.

New Listing: TIME Technoplast, Super listing around 400-450. Buy for target of Rs. 500+.

Buy Reliance around 1700/- Target Rs. 1720-1725/- SL Rs. 1690/- (Ultimate Target Rs. 1800/-)
Buy Nitin Fire around Rs. 390/- Target Rs. 410-415/- SL Rs. 380/-
Buy MIC Electronic around Rs. 330/- Target Rs. 345/- SL Rs. 322/-
Buy Rolta around Rs. 410/- Target Rs. 425/- SL Rs. 400/-
Buy Cummins around Rs. 315/- Target Rs. 325-330/- SL Rs. 308/-
Buy Indiabulls around Rs. 515/- Target Rs. 522-530/- SL Rs. 505/- (Resistance @ 522/-)

Others are: Riddhi Siddhi Gluco (280), Renuka (625), Bajajhind (170), Grindwell (145), Panasonic Battery (72), Tata Steel (600).

Buys on decline as market can open weak today.

Good Luck.

Markets Today

After opening with a positive gap of 39 points at 14,122, the Sensex exhibited lacklustre movement in morning trades. A fresh round of selling in noon trades saw the index break the psychological level of 14,000, and drop to a low of 13,947.

However, renewed buying interest mainly in heavyweights Tata Steel, Reliance and ICICI Bank helped the index recover losses and rebound into the positive zone. Aggressive buying with some short-covering saw the index rally to a high of 14,153 - up 206 points from the day's low.

The Sensex finally ended with a gain of 48 points at 14,131.

The market breadth is negative - out of 2,581 stocks traded, 1,678 declined, 823 advanced and 80 were unchanged today.

MOVERS & SHAKERS

ACC zoomed 5.5% to Rs 807. Grasim surged 2% to Rs 2,395, and Gujarat Ambuja was up nearly 1% at Rs 110.
Tata Steel rallied 4% to Rs 603. ICICI Bank and Reliance advanced 2% each to Rs 919 and Rs 1,700, respectively.

HDFC and Hero Honda were up 1% each at Rs 1,781 and Rs 706, respectively.Satyam plunged nearly 4% to Rs 478. Dr.Reddy's and Maruti slipped around 2% each to Rs 611 and Rs 719, respectively.

Tata Motors, Reliance Communications and Cipla declined around 1.5% each to Rs 641, Rs 498 and Rs 208, respectively.NTPC, HDFC Bank and Hindalco were down 1% each at Rs 153, Rs 1,087 and Rs 159, respectively.

VALUE & VOLUME TOPPERS

Reliance topped the value chart with a turnover of Rs 176.65 crore followed by Nitin Fire (Rs 130 crore), Reliance Communications (Rs 99.40 crore), SBI (Rs 94.75 crore) and Tata Steel (Rs 82.70 crore).

G V Films led the volume chart with trades of around 1.25 crore shares followed by Reliance Natural (93.30 lakh), S.Kumars (66.65 lakh), IFCI (62.20 lakh) and IKF Technologies (55.90 lakh). (from Business Standard)

DLF IPO:

The mega initial public offer of realty giant DLF, through which the developer is expecting to garner Rs 9,625 crore, on Tuesday got fully subscribed. The IPO got subscribed 1.04 times on its second day of offer, receiving 18.27 crore bids for 17.5 crore equity shares on offer, latest data available on the stock exchanges shows. Besides, 23,13,020 bids were received at cut-off price, the data shows. The issue had received bids for 78 per cent shares yesterday, when the IPO opened for subscription. The Qualified Institutional Buyers (QIB) portion constituting of Foreign Institutional Investors, domestic financial institutions and Mutual Funds was subscribed 1.28 times the shares reserved for them on the first day itself.

Vishal Retail IPO:

The initial public offering of Vishal Retail Ltd. has received a lukewarm response with the issue subscribed just 0.07 times. As per the National Stock Exchange web site, out of the total issue of 47,82,609 shares, bids for 3,25,375 shares have been received and of this 2,79,150 shares are at cut-off price. (Economic Times)

Intraday Calls for 12th June

Nifty: Supports are 4140, 4100 Resistance are: 4190, 4200
Sensex: Supports is 14000 and Resistance are 14100, 14200

Market looking weak, but I think some recovery expected after weak opening and may ends flat to positive. Highly volatile market, be carefull.

Buy NTPC (155) Target Rs. 158-160/- SL Rs. 152/-
Buy Bank Of Baroda (260) Target Rs. 265-270/- SL Rs. 255/-
Buy Asahi India (104) Target Rs. 108-110/- SL Rs. 100/-
Buy Nitin Fire (414) Target Rs. 420-430/- SL Rs. 405/-
Buy Hindalco (160) Target Rs. 164-165/- SL Rs. 157/-
Buy KPIT (148) Target Rs. 152-155/- SL Rs. 145/-

Others are: Sesha Paper (170), NR Agrawal (31), MIC Electronics (337), Crest Animation (120), Evinix (84), Reliance (1666), Unichem Labs (275).

All buys are on decline.

Good Luck.

DLF V/s Vishal Retail

Vishal Retail will probably deliver better on listing gains than DLF atleast that could be a reasonable expectation. Retail might be quite excited by this opportunity, said CNBC-TV18’s stocks editor, Udayan Mukherjee.

Vishal Retail is a much more exciting play for the pop offer. It is not as sexy as DLF but we have seen in the past that the biggest issues might take up a lot of headline space but they don’t often generate the biggest returns on listing and it was a fair bet to say that Vishal will probably deliver better on listing gains than DLF atleast that could be a reasonable expectation.

You don’t see too much of Vishal where we stay. They don’t have big glass buildings in downtown city but they are very strong in some of the up country places. They are value retailers, they are not one of your big brand retailers. They have their own brands which they sell pretty successfully and in doing that they have better margin profile than many of the other listed players. So I think 11% operating margin retail player cannot be overlooked specially as it comes at a 13 kind of PE multiple for this year. If our expectations for their FY08 EPS are met then the stock is being offered at 13 times at the higher end of the band.

I don’t think you found anything in this country in the retail space ever in that kind of valuations spectrum. So you can justify much more upside on Vishal. It will almost certainly get done at the higher end of the band and then I think it is much easier to justify a 40-50% upside on listing or shortly after listing on Vishal than it is on DLF. So retail might be quite excited by this opportunity.

Source: moneycontrol.com

IPO Talk: DLF

DLF, a leading real estate company, is open for subscription with an initial public offer, IPO of 175,000,000 equity shares of Rs 2 each through a 100% book building process.
The issue would constitute 10.27% of the fully diluted post-issue capital of the Company.
Keynote Capitals report on DLF IPO:

Recommendation - Subscribe with a medium term view
DLF is the largest real estate development company in India in terms of area of completed residential and commercial developments.
Land bank of 10,255 acres, of which developable area comes to 574mn sqft. The major portion of land bank (51%) is located in the NCR region.
DLF also has interests in developing SEZs, multiplex theaters and hotels and has entered into JVs, which will enter the insurance and capital markets segments. Though these projects are at nascent stages, they have a huge potential over the long term.
The proceeds of the IPO will be used in acquiring new land and funding existing projects. DLF will also prepay part of its long term debt.
We compared DLF with Unitech, its nearest competitor. The IPO is priced at 1.1x price to NPV, which is at a small discount to Unitech (whose land bank is almost equivalent to that of DLF) which trades at 1.2x, though the quality of Unitech's bank is not as good as that of DLF's. The high EV/sqft in case of DLF reflects better quality of the latter's land reserves and its high leverage.
The company has aggressive plans for the development of 44mn sqft area over the next 3 years.
While development of 44mn sqft in 3 years may be a tall order in itself, we believe DLF will continue to have a strong order book in the foreseeable future, given the sheer size of its huge land bank.
On the flip side, the scenario of hardening interest rates is the main concern from the industry point of view. We expect DLF to continue to generate negative cash flows during the next 3 years. Also, around 50% of its projects are to be completed only beyond FY10. The presence of 58 subsidiary companies makes it a complex corporate structure. In our view, the IPO can be subscribed to with a medium term view.
Concerns:
Hardening interest rates
60% of the developable area of 574mn sqft is still agricultural
High concentration on one region (51% of land is located in NCR region)
52.2% of residential, 72% of commercial and 57.3% of retail projects are likely to completed by FY10; therefore significant revenues likely flow in only by FY10 and FY11.
Some of the businesses like SEZs, Cinemas, Hotels and tourism are at nascent stages and will require investments going forward. In our view, a significant part of DLF's cash flows will go into these subsidiaries and joint ventures.
Also investments in long gestation period businesses like insurance may further pressurize cash flows.

Source:moneycontrol.com

IPO Talk: Vishal Retail

Vishal Retail is entering capital market with an initial public offering, IPO of equity shares aggregating Rs 110 crore.

The price band for the 100% book built issue has been fixed between Rs 230 - Rs 270 per equity share of Rs 10 each.

Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts said apply.

R S Iyer (KR Choksey) : Apply
Vishal Retail is a good issue. The price band is very reasonable and the company is consumer and investor oriented. People can go for it; they can earn money on listing. It should list above Rs 400.

Manish Bhatt (Prabhudas Lilladher): Apply
Vishal Retail is a good issue. Looking at current P/E of 20x and peers PEx of more than 60-80, the issue looks to be attractive. So investors can apply for the issue.

SP Tulsian (Investment Advisor): Apply
Vishal Retail is a very good issue. The company's fundamentals, past performance and brand are also good. The price band is very reasonable. Investors should subscribe the issue.

The issue opens on June 11, 2007 and closes on June 13.
The proceeds from the IPO will be used to meet the expenses of establishing new retail stores and to meet the expenses of the issue.
The company proposes to invest the proceeds of the issue to establish new retail stores. Of the total 32 stores to be set up this year, the IPO will fund for the establishment of 22 stores. The company will deploy Rs 104.15 crore of the net issue proceeds for setting up the stores in the current year. The setting up of the remaining stores will be funded through internal accruals.
The company will lease the real estate space for the stores and not buy the property.

The company reported total income at Rs 771.15 crore for the year ended March 2007 and net profit at Rs 24.98 crore.

The company currently operates 50 retail stores including two stores operated by franchisees located in 18 states across the country. It sells garments, apparels and FMCG products. It focuses on tier II and tier III cities and follows the value retail strategy.

Enam Financial Consultants Pvt. Ltd is the book running lead manager for the issue and Intime Spectrum registry Ltd. is the registrar to the issue.

Source:moneycontrol.com

Markets Today

It was a disappointing close for the markets as it closed flat despite good global cues. It ended flat after opening strong and trading higher for better part of the day. Profit booking set in at the final hour of trade and the midcap and smallcap index deeper cut. Sensex was off 170 points from day's high and Nifty was off 60 points.Select banking, telecom, auto stocks were among the losers.
Top losers on the indices were Rel Comm, Grasim, SBI, Zee Entertainment, Nalco and Reliance Petro.
However, oil & gas, IT and FMCG stocks were among the gainers. Hero Honda, Hindalco, ITC, GAIL, HPCL closed in green.
The much awaited DLF IPO opened today and its QIB portion was subscribed 1.05 times; overall 0.65 times and most of the bids have come at the higher level of the band of Rs 550.
The BSE Midcap Index ended at 6,129.48 down 27 points or 0.43%.
The BSE Smallcap Index ended at 7,320.01 down 23 points or 0.3%.
The BSE Capital Goods Index was up 0.2% at 10,863.00. Gammon India, Bharat Elec, Punj Lloyd, Alfa Laval, Lakshmi Machine closed higher.
The BSE Health Care Index was up 0.3% at 3,751.64. Divis Labs, GlaxoSmithKline, Sterling Bio, Nicholas Pirama closed higher.
The BSE Auto Index closed closed flat at 4,703.93. Exide Industrie, Hero Honda, Ashok Leyland closed in the green.
The BSE Metal Index closed at 10,258.74 up 0.2%. Shree Precoated, Hindalco, Jindal Saw, SAIL advanced.
The BSE FMCG Index gained 0.6% at 1,790.19. Godrej Consumer, ITC, Nestle, Marico closed higher.
BSE Oil and Gas Index closed higher at 7,413.97 up 0.6%. GAIL, HPCL, BPCL, IOC ended in green.
The BSE IT Index gained 0.6% at 5,015.10. Infosys, Financial Tech, Satyam closed higher.
The BSE Bankex was down 0.2% at 7,427.55.

Source: moneycontrol.com

Intraday Calls for 11th June

Nifty: Support is 4140 and resistance are 4175, 4190.
Sensex: Support is 14000 and Resistance are 14150, 14200.

Market will open with gap up but can see resistance in 2nd half, market should be remain positive today.

Buy Nitin Fire @ Rs. 415-420/- Target Rs. 430-445/- SL Rs. 408/-
Buy Crompton Greave @ Rs. 243/- Target Rs. 250-255- SL Rs. 238/-
Buy Unitech @ Rs. 505-510/- Target Rs. 525-535/- SL Rs. 500/-
Buy Tata Steel above Rs. 590/- Target Rs. 600-610/- SL Rs. 582/-
Buy IDBI @ Rs. 101/- Target Rs. 105-107/- SL Rs. 99/-
Buy GTL @ Rs. 220/- Target Rs. 225-230/- SL Rs. 216/-

Others are: RNRL (34), Moser Baer (454), Mphasis BFL (325), Indiabulls (500), Indiainfoline (624), Paramount Communication (35.5).

Good Luck.

Markets Today

The markets closed with a sharp cut amid a highly volatile session. It opened in red and throughout the day made attempts to move in the positive terrain but saw a heavy sell off in the final hour of trade. The fall was inline with equity markets across Asia. Although the inflation numbers came in as a good news but failed to keep markets up.
Inflation numbers for week ended May 26 at 4.85% versus 5.06%; market estimated 5.05%. It is much below market expectation and has dropped to 43 week low.
The broader also closed in red but the cut was not as deep as it was in the frontline indices. Selling pressure was seen in scrips across sectors. Metal, auto and FMCG stocks were among the major losers.
The only index to close in green was BSE IT index, it was up over 0.5%.
Even on weekly basis the markets had a bumpy ride with Sensex down 3.5% or 500 points and Nifty down 3.5% or 150 points.
Sensex was down 122.37 points or 0.86% at 14063.81, and the Nifty down 34.50 points or 0.83% at 4145.
About 931 shares have advanced, 1450 shares declined, and 73 shares are unchanged.
The BSE Small Cap Index closed at 7,342.59 down 48 points or 0.7%.
The BSE Midcap Index ended at 6,156.22 down 32 points or 0.51%.
The BSE FMCG Index wad down 1.8% at 1,779.10. ITC, Bata India, Godrej Consumer, United Spirits, Tata Tea closed in red.
The BSE Metal Index closed at 10,242.72 down 1.8%. Tata Steel, SAIL, Shree Precoated, JindalStainless, Jindal Steel were among the losers.
The BSE Bankex was down 1% at 7,441.25. Oriental Bank, Federal Bank, Kotak Mahindra, Centurion BoP, HDFC Bank, Bank of India moved downwards.
The BSE Health Care Index ended lower by 0.8% at 3,741.15. Dr Reddys Labs, Ranbaxy Labs, Aventis Pharma, Glenmark, Novartis India closed lower.
The BSE Capital Goods Index was down 1.1 at 10,841.37. SKF India, Gammon India, Suzlon Energy, BHEL, AIA Engineering ended lower
The BSE Auto Index closed at 4,700.71 down 2.3%. MICO, Maruti Udyog, TVS Motor, Tata Motors, Escorts were among the losers.
The BSE IT Index closed at 4,986.81 up 0.6%. Satyam, Financial Tech, TCS, HCL Tech, Wipro were among the gainers.
The BSE Oil and Gas Index closed at 7,372.05 down 0.3%. BPCL, HPCL, IOC, Reliance Natura ended in red.
The NSE cash turnover was at Rs 10558.93 crore and the NSE F&O turnover was at Rs 41842.93 crore. The BSE cash turnover was Rs 4599.09 crore. Total market wide turnover was at Rs 57000.95 crore.

Intraday Calls for 8th June

Nifty: Supports are 4150, 4140 and Resistance are 4190, 4220.
Sensex: Supports are 14100, 14075 and Resistance are 14200, 14250.

Market will opens weak, remain weak. But IT sector should support the market as Dollar going strong today.

Buy Indiabulls around Rs. 510/- Target Rs. 520/- SL Rs. 505/- (Strong support at 490)
Buy Cummins India around Rs. 320/- Target Rs. 330/- SL Rs. 315/- (Short term target Rs. 345/-)
Buy Elecon Engineering Rs. 455/- Target Rs. 465-470/- SL Rs. 445/-
Buy Paramount Communication @ Rs. 34-35/- Target Rs. 38-40/- SL Rs. 32/- (Short Term Target Rs. 45-50/-)
Buy Balaji Telefilms @ Rs. 210/- Target Rs. 215-220/- SL Rs. 205/-.

Others are : Cambridge Solution (132), KPIT (139), Sesa Goa (1690),

Above buys are only at declines.

Good Luck

Delivery Pick for Short Term

Paramount Communication (530555)
CMP Rs. 35/-
Very Strong Fundamentals. EPS around Rs. 5/- (After Stock Split)
Good accumulation is going on.
A bounce expected above Rs. 35, which can take the stock price higher to Rs 45 or Rs 50.
Results on 23rd June. Hope is that results will be great.
So Buy it at CMP and every decline for very short term target Rs. 45-50/-

Markets Today

It was an extremely volatile day with markets moving in the positive and negative terrain. The markets ended in red with moderate losses. Heavy selling pressure was seen in auto, banking and FMCG stocks. The only index to close in green was IT with rupee stabiling aroung 40.65 levels against the dollar.
Asian markets ended flat to positive. Nikkie closed in green and Shanghai was up 3%.
After hovering around the 4200 mark, Nifty slipped and closed below the 4200 level and the Sensex closed below the 14,200 level.
The turnover has been huge, especially in the F&O segment of over Rs 40,000. The BSE Midcap and smallcap indices outperformed the fronline indices and closed flat.
Sensex was down 69.75 points or 0.49% at 14186.18, and the Nifty down 18.75 points or 0.45% at 4179.5.
About 1010 shares have advanced, 1443 shares declined, and 75 shares are unchanged.
The BSE Small Cap Index closed flat at 7,391.02.
The BSE Midcap Index ended at 6,187.97 down 6.06 points or 0.10%.
The BSE FMCG Index wad down 1.7% at 1,811.60. United Brewerie, P and G, Bata India, ITC, Godrej Consumer closed in red.
The BSE Metal Index closed flat at 10,427.05. JindalStainless, Hind Zinc, SAIL, Shree Precoated were among the losers.
The BSE Bankex was down 1.1% at 7,512.09. Allahabad Bank, Bank of Baroda, Oriental Bank, Bank of India moved downwards.
The BSE Health Care Index ended lower by 0.4% at 3,771.89. Biocon, Lupin, Wockhardt, Sun Pharma closed lower.
The BSE Capital Goods Index was down 0.2% at 10,958.41. Crompton Greave, Carborundum, Siemens, BEML, L&T and Jyoti Structure ended lower
The BSE Auto Index closed at 4,812.08 down 1.2%. Escorts, Bajaj Auto, Hero Honda, Ashok Leyland, Maruti Udyog were among the losers.
The BSE IT Index closed at 4,957.57 up 1.7%. Financial Tech, Mphasis, Patni Computer, Satyam ended weak.
The BSE Oil and Gas Index closed at 7,393.11 down 1%. HPCL, Reliance, IOC, ONGC, Essar Oil ended in red.
The NSE cash turnover was at Rs 9081.35 crore and the NSE F&O turnover was at Rs 42284.84 crore. The BSE cash turnover was Rs 4272.41 crore. Total market wide turnover was at Rs 55638.6 crore.

Source:moneycontrol.com

Intraday Calls for 07th June

Nifty: Strong supports are 4150, 4140 and Resistance are 4220, 4230
Sensex: Strong Supports are 14150, 14110 and Resistance are 14300, 14320

Today Market will take support (4150-4140 and 141450-14100) after weak opening and may bouce back from oversold zone. Smart Recovery expected in second half.

Buy Sail @ decline below Rs. 130/- Target Rs. 135/- SL Rs. 128/-
Buy Helios & Matheson @ Rs. 172-175/- Target Rs. 180-185/- SL Rs. 170/-
Buy Mphasis BFL @ Rs. 310/- Target Rs. 320-325/- SL Rs. 305/-
Buy Cranes Software @ Rs. 120/- Target Rs. 125/- SL Rs. 117/-
Buy KPIT Cummins @ Rs. 141-143/- Target Rs. 145-148/- SL Rs. 138/-
Buy Cinemax @ below Rs. 160/- Target Rs. 165-168/- SL Rs. 155/-

Others are: Reliance Ind (1687), NTPC (155), SesaGoa (1645), Suzlon (1310), BILT (115), ISMT Ltd. (95) Ispat Ind (15).

All buys are on decline as market will opens weak and corrects more at firts half, Recovers later.

News:

• Suzlon Energy's subsidiary signs contract with Edison Mission Group of Irvine, California
• Alstom bags contract worth Rs 255 crore
• Voltas' FII shareholding reaches 29.96% of paid-up capital
• Indiabulls Real Estate's subsidiaries receive approval from Department of Commerce
• Sunil Hitech Engineers bags Rs 15.24- crore order
• Cyber Media (India) net profit dips 74.22% in the March 2007 quarter
• BASF India net profit dips 26.31% in the March 2007 quarter
• Netlink Solutions (India) net profit dips 73.08% in the March 2007 quarter
• NESCO net profit rises 364.18% in the March 2007 quarter
• Cyber Media India recommends dividend

Good Luck.

Markets Today

After last few sessions of sluggish trade the markets saw a deep crack today and ended with some hefty losses. It was trading flat for major part of the day but saw a heavy sell off during the later part of the day. On the F&O side there were concerns of discount widening, Nifty closed with 27 points discount.
Selling was seen in scrips across indices. All the BSE sector indices closed in red, banking and oil & gas led the downtrend. Steel majors Tata Steel and SAIL closed in deep red. It was a bad day for European markets as well but most of the Asian markets ended flat.
The broader markets also ended with deep cut but the frontliners underperformed the midcap and smallcap indices. The market breadth was extremely negative and this fall has been huge volumes.
IT index which was holding in green for better part of the day gave up its gains and closed in red with moderate losses.
Sensex is down 279.08 points or 1.92% at 14255.93, and the Nifty down 86.40 points or 2.02% at 4198.25.
About 813 shares have advanced, 1688 shares declined, and 65 shares are unchanged.
The BSE Small Cap Index closed at 7,389.76 down 1.3%.
The BSE Midcap Index ended at 6,181.91 down 1.3%.
The BSE FMCG Index down 1.5% at 1,842.20. Tata Tea, Bata India, United Brewerie, ITC, Nestle closed in red.
The BSE Metal Index was down 2.2% to close at 10,414.47. Shree Precoated, SAIL, JSW Steel, Tata Steel, Sterlite Ind were among the losers.
The BSE Health Care Index was down 1.6% at 3,785.41. Glenmark, Ranbaxy Labs, Biocon, Lupin, Novartis India closed lower.
The BSE Capital Goods Index was down 1.6% at 10,981.01. Carborundum, Reliance Infra, Suzlon Energy, AIA Engineering, BHEL, BEML ended lower.
The BSE Auto Index closed at 4,868.44 down 1.9%. MICO, TVS Motor, Tata Motors, MRF, Maruti Udyog among the losers
The BSE IT Index closed at 4,872.64 down 0.3%. I-Flex Solution, Financial Tech, HCL Tech, Wipro ended weak.
The BSE Bankex was up 2.9% at 7,594.85. Oriental Bank, PNB, Canara Bank, Union Bank, Bank of India closed higher.
The BSE Oil and Gas Index closed at 7,468.53 down 3.2%. Reliance Natura, GAIL, Petronet LNG, Reliance, ONGC closed in red.
The NSE cash turnover was at Rs 10213.5 crore and the NSE F&O turnover was at Rs 40345.37 crore. The BSE cash turnover was Rs 5265.34 crore. Total market wide turnover was at Rs 55824.21 crore.

Source:moneycontrol.com

Markets Today

It was another sluggish and flat session for markets with Sensex and Nifty ending marginally in green. The Asian cues were largely positive, Shanghai saw some wild swings but ended in green. Rest of Asia also did well for itself. Selective buying was seen in telecom, technology, capital goods and banking stocks.The BSE midcap index ended marginally higher than the frontline indices and the BSE smallcap index ended inline with Sensex.
In the telecom sector MTNL and VSNL ended higher. Capital goods stocks like Suzlon, BEML, Crompton ended strong.
The IPO space was on fire with Nitin Fire Protection had a bumper opening with 75% premium and closed up 163% at Rs 501.
NIIT declared its FY07 numbers, bonus issue and stock split. The stock ended up over 8.6%.
Sensex is up 39.24 points or 0.27% at 14535.01, and the Nifty up 17.60 points or 0.41% at 4284.65.
About 1295 shares have advanced, 1260 shares declined, and 71 shares are unchanged.
The BSE Midcap Index ended at 6,261.02 up 27.44 points or 0.44%.
The BSE Smallcap Index ended at 7,486.67 up 19.90 points or 0.27%.
The BSE Bankex was up 1.06% at 7,823.97. Kotak Mahindra, Oriental Bank, Federal Bank, Canara Bank and Bank of Baroda moved upwards.
The BSE Capital Goods Index was up 0.5% at 11,154.27. BEML, Crompton Greave, Praj Industries, SKF India and HEG closed higher.
The BSE Health Care Index was up 0.2% at 3,847.99. Nicholas Piramal, Wyeth, Ranbaxy Labs, Novartis India and Sun Pharma closed higher.
The BSE Auto Index closed at 4,960.25 up 0.2%. TVS Motor, Cummins, Bajaj Auto, Escorts, Ashok Leyland and Amtek Auto surged.
The BSE Metal Index closed at 10,648.83 up 0.1%. Sterlite Ind, NALCO, Mah Seamless, Tata Steel and Hind Zincadvanced higher.
The BSE FMCG Index lost 1.3% at 1,869.87. United Breweries, United Spirits, Tata Tea, ITC and Marico closed lower.
BSE Oil and Gas Index closed higher at 7,712.08 up 0.3%. Reliance Natural, Petronet LNG, MRPL, GAIL and IOC ended in green.
The BSE IT Index gained 0.8% at 4,884.93. I-Flex Solution, Infosys, Mphasis, Patni Computer and Wipro closed higher.
The NSE cash turnover was at Rs 9175.93 crore and the NSE F&O turnover was at Rs 31210.07 crore. The BSE cash turnover was Rs 4371.22 crore. Total market wide turnover was at Rs 44757.22 crore.

Intraday Calls for 5th June

Nifty: Supports are 4230, 4200 and Resistance are 4295, 4310
Sensex: Supports are 14400, 14450 and Resistance are 14540, 14575
Market is likely to open with flat to nagetive but a bit recovery can be seen later and may close flat to positive.

Keep Eye on new listing of NITIN FIRE (532854) if it available arround Rs. 300/- then buy it for the target of Rs. 350-375-400+.

Buy GMDC (Gujarat Mineral Dev.) @ Rs. 720/- Target Rs. 735-745/- SL Rs. 710/-
Buy PSTL @ Rs. 370/- Target Rs. 385-390/- SL Rs. 360/-
Buy Ray-Ban @ Rs. 116/- Target Rs. 120-122/- SL Rs. 114/-
Buy Sadbhav Engineering @ Rs. 530/- Target Rs. 545/- SL Rs. 525/-
Buy Bajaj Hind @ Rs. 165/- Target Rs. 170-175/- SL Rs. 162/- (oversold, Technical recovery expected)

Others are HindZinc(676), Asahi Songwon (90), NTPC (160).

Good Luck.

Technical Analysis

Ashok Leyland- Buy (Rs.38)- The stock is in consolidation phase and can be bought at this level with stoploss at Rs. 36 for a short term Tgt of Rs. 42-44.

Monthly Review Report

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Markets Today

The markets opened positive but could not hold their gains at the higher level and slipped in red. It closed near the lowest point of the day with negative market breadth. Most of the Asia ended flat, but China was down over 8%.
Sensex is down 74.98 points or 0.51% at 14495.77, and the Nifty down 30.00 points or 0.70% at 4267.05.
About 1149 shares have advanced, 1371 shares declined, and 83 shares are unchanged.
Auto, IT and capital goods were among the major losers. In the auto sector Tata Motors slipped as it came out with disappointing set of monthly May sales. The IT stocks continue to reel under pressure as the rupee is seen trading at 40.52 levels against the dollar. Sugar sector was a major underperformer in today's session. Bajaj Hindustan, Balrampur Chini, Renuka were among the major losers.
However, metal index outperformed the markets with gains of over 1.2%. Hindalco surged and ended up over 4% on reports that Sterlite with Alcan is looking to buy stake in Hindalco.
FMCG stocks ITC and Dabur India were also among the top gainers.
The BSE Small Cap Index closed at 7,466.77 down 0.01%.
The BSE Midcap Index ended at 6,233.58 down 0.5%.
The BSE FMCG Index up 0.2% at 1,881.32. Dabur India, ITC, Nestle, Bata India closed in green.
The BSE Metal Index was up 1.6% to close at 10,634.17. Jindal Steel, Hind Zinc, Hindalco, Jindal Saw, Tata Steel were among the gainers.
The BSE Health Care Index was down 0.3% at 3,840.59. Panacea Biotech, Cipla, Wockhardt, Divis Labs closed lower.
The BSE Capital Goods Index was down 1.2% at 11,102.87. Bharat Elec, BHEL, Thermax, Praj Industries, HEG ended lower.
The BSE Auto Index closed at 4,948.37 down 1.6%. Tata Motors, TVS Motor, Escorts, Bharat Forge, Cummins among the losers
The BSE IT Index closed at 4,846.50 down 1.3%. Patni Computer, Satyam, I-Flex Solution, Wipro ended weak.
The BSE Bankex was up 0.8% at 7,741.56. Union Bank, SBI, Federal Bank, Bank of Baroda, IOB closed higher.
The BSE Oil and Gas Index closed at 7,691.14 down 1.1%. GAIL, HPCL, IOC, Reliance Natura closed in red.
The NSE cash turnover was at Rs 8533.08 crore and the NSE F&O turnover was at Rs 28727.23 crore. The BSE cash turnover was Rs 3682.8 crore. Total market wide turnover was at Rs 40943.11 crore.

Source:moneycontrol.com

Intraday Calls for 4th June

Nifty: Supports are 4280, 4255 and resistance are 4320, 4345
Sensex: Supports are 14500, 14400 and resistance are 14600, 14655
Market positve with high volatility and may close with some gain.

Buy Ashok Layland @ Rs. 38-39/- Target Rs. 44+/- SL Rs. 36/- (Positional Call for 5-10 days)
Buy Mahindra & Mahindra @ Rs. 762/- Target Rs. 775/- SL Rs. 755/-
Buy Prime Securities @ Rs. 67 Target Rs. 70-72-75/- SL Rs. 65/-
Buy Bajaj Hind @ Rs. 175/- Target Rs. 180-185/- SL Rs. 172/-
Buy Albert David Ltd. @ Rs. 107/- Target Rs. 112-115/- SL Rs. 102/-
Buy Sasken Communication @ Rs. 560/- Target Rs. 575/- SL Rs. 555/-
Buy Fortis Healthcare @ Rs. 88/- Target Rs. 92-95/- SL Rs. 85/- (DLF - Fortis JV)

Others are MTNL (162), Penland (503), Balrampur Chini (77), Renuka (640), ITI Ltd. (48), Rain Calcining (35).

Good Luck.

IPO Talk: Meghmani Organics

Dear friends, Investors with an appetite for risk can subscribe to the initial public offering (IPO) from Meghmani Organics being made in the price band of Rs 17-19 per share (face value Re 1). A consistent track record of financial performance and a well-diversified client base for pigments and agrochemicals suggest that the company can deliver secular earnings growth over the next few years. At the higher end of the price band, the offer is priced at about 9 times the likely earnings for FY-08. Despite reasonable earnings prospects, the lack of market fancy for stocks in this sector may curtail the scope for listing gains on this offer.

Meghmani Organics is raising Rs 102 crore through this offer to fund its working capital requirements, set up new manufacturing units for High Performance Pigments and agrochemical formulations, and invest in a subsidiary to finance a 3MW wind power plant. The company's current revenues are derived mainly from domestic as well as export sales of pigments (green and blue) and generic agrochemicals. Exports accounted for about three-fourths of sales in the latest financial year. The key clients for the pigments business are ink, paint and plastic manufacturers both in India and abroad. The company counts global majors such as the Flint Group and Paramount Colors among its clients for pigments and Micro Flo, Valent and FMC Corp as its agrochem clients.

Diversified revenue base:

Though Meghmani is only a mid-size player in the pigments and agrochemicals market, the company's revenue base appears well diversified both geographically as well as in terms of customers. The diversified client base ensures low reliance on individual customers (though some are large global players) and the geographic spread of sales reduces market- and currency-related risks.

The outlook for the pigments business appears strong in the light of the improving growth prospects for the paints and inks industry in the domestic as well as the global context.

Entry barriers to this business are relatively high by virtue of the company's specialisation and the customisation involved in the manufacturing process. The outlook for the generic agrochemicals business is less bright. Though the business offers scope for strong volume growth (India being a low-cost manufacturing base), it is subject to persistent pricing pressures. Generic products such as acephate, cypermethrin and imidachloprid, which are the key product lines for the company, have seen steady price declines in recent years.

Meghmani Organics on its part, has managed strong volume and sales growth over the past three years (sales have grown at a compounded annual rate of 23 per cent), despite the pricing pressures. The company's ability to sustain high revenue growth amidst rather sluggish market conditions and fairly intense competition in its businesses, suggests cost competitiveness. At the same time, operating profit margins have hovered at healthy 23-25 per cent levels. The profit growth has however lagged sales expansion, at 11 per cent annualised growth over three years. Though the company has managed strong volume growth, higher raw material costs (several inputs are linked to the crude oil basket) and declines in realisations in the agrochem business have tempered the profit rise.

From here, the company appears well-placed to deliver a 15 per cent earnings growth over the next couple of years, with the help of new manufacturing facilities, an improved product mix, a strong new product pipeline and reduced tax incidence. In the pigments business, it has 12 products at various stages of development. In the agrochemicals business, where the time and regulatory procedures involved in obtaining registrations are the key entry barrier, Meghmani already holds 90 registrations across 50 countries, with over 415 pending registrations. Expansion in the product portfolio would help the company sustain revenue growth and offset pricing pressures in its key businesses.

For the year ended March 2007, the company has managed net profits of Rs 40.7 crore (15 per cent growth) on net sales of Rs 470 crore (21 per cent). This translates into per share earnings of Rs 2.02 on the current equity base and Rs 1.60 on the fully diluted equity base (assuming pricing at the upper end of the band). The offer price, at Rs 19, dilutes trailing 12-month earnings by about 12 times. Despite the reasonable earnings prospects, the low valuation accorded to stocks of specialty chemical and agrochemical majors could be a constraint to significant price gains on this stock.(from Business Line)

IPO Talk: Nelcast

Dear friends, Investors with a two/three-year perspective can consider investing in the initial public offering (IPO) of Nelcast. In the Rs 195-219 band, the offer is priced at 11-13 times the likely FY-08 per-share earnings on the post-offer equity base. In the business of manufacturing casting components, Nelcast is likely to scale up its growth, given the increased demand for castings in both the domestic and foreign markets. It is also likely to benefit from its proposed increase in focus on exports and machined casts. This apart, its set of established clients such as Ashok Leyland, TAFE and TATA Cummins also lends confidence to its earnings growth prospects.

Investment rationale:

Nelcast, which derives more than 50 per cent of its revenues the commercial vehicles segment, could witness increased demand on the back of an expected growth in freight traffic and the proposed introduction of emission and loading norms. However, any slump in the growth of the interest rate-sensitive commercial vehicles industry may mute Nelcast's earnings.

In this context, Nelcast's decision to widen its product base towards small castings to cater to passenger cars and light commercial vehicles is a positive. This apart, the proposed increase in the manufacture of machined casts, aimed at 20-25 per cent of total production by the next fiscal year, could give a further fillip to the bottomline, as these products enjoy better pricing and margins.

On the export front, outsourcing of casting components is likely to remain buoyant, given the strict environmental norms, rising labour costs and shortage of skilled labour in markets such as the US and Europe.

Encouraged by this rising demand scenario, Nelcast proposes to dedicate about 25 per cent of its capacity (post-expansion) for exports. While Nelcast already has a presence in US through its subsidiary and supplies to Volvo Sweden through its Tier-I supplier, Arvin Meritor, the increased thrust on exports is likely to help it strengthen its presence in the global arena. Further, as exports enjoy better realisation, revenues should rise.For the financial year ended March 2007, the company reported a revenue growth of about 30 per cent to about Rs 350 crore. The earnings recorded a 182 per cent increase to about Rs 7 crore.On the operational front, margins expanded by about 5 percentage points to 25 per cent on the back of increased sales realisation and pruning of costs.The earnings per share on a fully diluted basis stood at about Rs 11 for FY-07.

Objects of the issue:

The issue proceeds will be used to fund the expansion and modernisation of production facilities at both the units of Nelcast. The company plans to increase capacities from about 102,000 tonnes to about 120,000 tonnes by FY-08 and an additional 30,000 tonnes by FY-09.

Concerns:

While Nelcast's decision to increase its focus on exports is a positive, its ability to source orders from global players could be crucial. Our concern stems from the increased competition in the export market from both the domestic and Chinese players. This apart, since most of the existing players in the domestic market are on an expansion mode, it could lead to an excess supply scenario, which could cap Nelcast's earnings.

Offer details:

The offer is open from June 4 to June 8. The company seeks to raise about Rs 95 crore through this offer. Karvy Investor Services and Bigshare Services Private Limited are the lead manager and registrar to the issue respectively.(from Business Line)

Market This Week

Sensex up 1.6%;
Nifty up 1.1%,
CNX Nifty Junior up 2%
CNX Midcap Index up 1.8%;
BSE Small Cap Index up 3%
BSE Cap Goods Index up 6.8%; L&T up 15%, ABB up 4.5%, BHEL up 4%
BSE Auto Index up 3.4%; Hero Honda up 5.5%,M&M up 4%,Bajaj Auto up 3%
BSE Healthcare, Bank Indices up 2.7% Each
Index Gainers: Cipla up 9%, HDFC Bank up 7.5%,Jet,MTNL up 7% Each
BSE FMCG Index Down 1.5%;
BSE IT Index Down 1%
Index Losers: Suzlon Down 7%, SAIL~Dn 6%, ITC Dn 3.3%, Infy Dn 2.4%

Markets Today

Markets shed early gains in late trade
Sensex up 26 points at 14570; down over 110 points from days high
Nifty ends flat at 4297; down over 25 points from days high
MTNL up 6.8%; gains on talks of Noida land investment plans in 10 days
BSE IT Index up 1.17%, BSE Bank Index up 1%
Index Gainers; GAIL up 3.4%, Cipla up 2.9%, ABB up 2%, SBI up 1.8%
Profit booking in FMCG & Oil & Gas stocks
Index Losers; Hero Honda down 2.15%, ITC down 1.7%, ONGC down 1.2%
CNX Midcap Index up 0.78%, CNX Nifty Junior up 1.38%, BSE Small-cap Index up 0.82%
Sugar & construction/ real estate stocks gain
Shree Renuka Sugar up 9%, Simbhaoli Sugar up 5%, Balrampur Chini up 3.4%
Lanco Infratech up 15%, Bata up 7.7%, Indiabulls Real Estate up 4.6%
NSE Advance Decline at 4:3
Total market turnover at Rs 41523.26 cr on 1st day of June series

Intraday Calls for 01st June

Nifty supports are 4275, 4240 and resistance are 4325, 4340.
Sensex Support is 14500 and resistance is 14625.
Market positive but I think it will be flat trading today.

Buy Unitech @ Rs. 575/- Target Rs. 585-590/- SL Rs. 570/-
Buy Hanung Toys @ Rs. 155/- Target Rs. 158-160/- SL Rs. 152/-
Buy Jet Airways @ Rs. 770/- Target Rs. 785-790/- SL Rs. 765/-
Buy Sintex Ind Above Rs. 228/- Target Rs. 232-235/- SL Rs. 222/-
Buy Indiabulls @ Rs. 532/- Target Rs. 545/- SL Rs. 525/-

Others buy are Patni (532), Riddhi Siddhi Gluco (256), SesaGoa (1680), BOB (175), ICICI (918)Wipro (542), Rolta (460).

Short Sell (High Risk) Punjllyod (217), Orbitcorp (248).

Good Luck