Markets Today

Domestic market witnessed extremely weak session with the benchmark index BSE Sensex plunging to a 6-month low. Markets across the globe suffered severe setback amid concerns about the effectiveness of the Federal Reserve's efforts to aid strained credit markets. European markets, which opened after Indian market, slipped in early trade. Asian markets, which opened before Indian market, settled weak.
28 shares among the 30-member Sensex pack finished with losses. The market breadth was extremely weak. Turnover was dull. Stocks from across the board witnessed sharp cut with those of real estate, metal and capital goods sector among worst hit.
The 30-share BSE Sensex slumped 782.04 points or 4.85% at 15,345.94, as per provisional closing. Sensex hit a low of 15,228.99 in late trade, its lowest level since early September 2007. At the days low, the Sensex lost 898.99 points.
The broader based S&P CNX Nifty was down 248.65 points or 5.06% at 4,625.35 as per provisional closing.
The market breadth was weak. On BSE 2,331 shares declined as compared to 359 that advanced. 43 shares remained unchanged.
The BSE Mid-Cap index was down 5.46% to 6,532.74 while the BSE Small-Cap index slipped 5.17% to 8,090.78. Both these indices underperformed the Sensex
The total turnover amounted to Rs 5952 crore as compared to Rs 4828 crore by 15:45 IST on BSE.
Real estate shares were hammered brutally, with the BSE Realty index tumbling 10.59% to 7,445.96. Indias largest real estate developer by market capitalisation DLF slipped 13.29% to Rs 618. It was the top loser from Sensex pack. As per reports, the firm may delay a planned initial public offering to raise $1.5 billion from a real estate investment trust in Singapore.
Unitech (down 9.62% to Rs 266.20), Parsvnath Developers (down 8.45% to Rs 207), Indiabulls Real Estate (down 10.23% to Rs 510), were the other losers from real estate sector
Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries slumped 5.23% to Rs 2252 on 12.49 lakh shares. The stock moved in a range of Rs 2201 and Rs 2355 during the day
Metal shares slumped on profit booking. Hindalco Industries (down 9.72% to Rs 173.15), Tata Steel (down 9.06% to Rs 697), Steel Authority of India (down 11.64% to Rs 192.80), and JSW Steel (down 5.44% to Rs 888.25), slipped
IT pivotals slumped on concerns of a US recession. TCS (down 7.25% to Rs 765), Satyam Computers (down 5.10% to Rs 359.90), Wipro (down 6.75% to Rs 363.55), and Infosys (down 4.63% to Rs 1320), edged lower. Indian IT firms derive more than half of their revenue from exports to US.
Banking shares slipped on selling pressure. Indias largest private sector bank in terms of net profit ICICI Bank slipped 5.67% to Rs 830 tracking weak ADR which declined 5% on the NYSE yesterday, 12 March 2008. State Bank of India (down 6.80% to Rs 1685), and HDFC Bank (down 4.37% to Rs 1308), also slipped.
Reliance Energy (down 10.95% to Rs 1183), Reliance Communications (down 7.82% to Rs 497.50), and Bharat Heavy Electricals (down 6.52% to Rs 1885), slipped from Sensex pack.
Bajaj Auto, the countrys second largest two wheeler maker in terms of sales, gained 1.49% to Rs 2124 in volatile trade. The stock moved in a wild range of Rs 1976.05 and Rs 2175. All existing futures & options contracts on the counter expired today and new contracts will be introduced on, 14 March 2008, as a demerger scheme takes effect from tomorrow, 14 March 2008.
As per the demerger scheme, the company's various businesses including auto manufacturing and other strategic businesses such as wind energy, insurance and financial services, would be demerged into two newly incorporated subsidiaries: Bajaj Holdings and Investment (BHIL) and Bajaj Finserv (BFL).
Hindustan Unilever, the countrys largest FMCG company in terms of sales, rose 0.20% to Rs 222.20
The next trigger for the market would come from the figures of advance tax payment by corporates for the fourth installment, which falls due on 15 March 2008.
Another major trigger for the market is outcome of the US Federal Reserve meeting on 18 March 2008 to review interest rates. A cut in interest rate, as expected by the street may provide some support to the markets. Fed Chairman Ben Bernanke had signaled a readiness to cut interest rates again to prevent further damage to the weak US economy, even as he took note of rising inflation risks.
European markets were weak. Key benchmark indices from United Kingdom (down 2.12% to 5,654), Germany (down 2.55% to 6,431.88), and France (down 2.31% to 4,588.44), slipped
Asian markets settled on a weak note today, 13 March 2008. Japan's Nikkei (down 3.33% at 12,433.34), Hong Kong's Hang Seng (down 4.79% at 22,301.46), Taiwan's Taiwan Weighted (down 2.66% at 8,210.99), Chinas Shanghai Composite (down 2.43% to 3,971.27), Straits Times (down 3.85% at 2,805.55) and South Korea's Seoul Composite (down 2.60% at 1,615.92), edged lower.
US markets slipped on Wednesday, 12 March 2008, on concerns that the US Federal Reserve will fail to prevent a recession and global crude oil prices surged above $110 a barrel raising fears of further strain on corporate profits.
The Dow Jones industrial average was down 46.57 points, or 0.38%, to 12,110.24. The Standard & Poor's 500 index plunged 11.88 points, or 0.90%, to 1,308.77, and the Nasdaq Composite index declined 11.89 points, or 0.53%, to 2,243.87.
Back home, the 30-share BSE Sensex was up marginally by 4.83 points or 0.03% at 16,127.98 on Wednesday, 12 March 2008. The broader based S&P CNX Nifty rose 6.10 points or 0.13% at 4,872 on that day.
As per data released by the government yesterday, 12 March 2008, growth in index of industrial production (IIP) slipped to 5.3% in January 2008 as compared with 11.6% in January 2007, the lowest since October 2006, when it stood at 4.51%. Growth in the manufacturing sector declined to 5.9% in January 2008 as against 12.3% in January 2007.
As per provisional data, foreign institutional investors (FIIs) purchased shares worth Rs 127.94 crore on Wednesday, 12 March 2008. Domestic institutional investors (DIIs) were net sellers of shares worth Rs 528.06 crore on that day.
FIIs were net buyers of Rs 1,898.64 crore in the futures & options segment on Wednesday, 12 March 2008. They were net buyers of index futures to the tune of Rs 1,386.07 crore and bought index options worth Rs 287.57 crore. They were net buyers of stock futures to the tune of Rs 200.50 crore and bought stock options worth Rs 24.50 crore.
Crude oil hovered near Wednesday (12 March 2008)'s record high of $110.20 per barrel.
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Intraday Calls for 13th March

Gap Down opening of about 2-3% expected today in Indian Stock Markets as very poor IIP data and Weak Global Cues. Remains nagetive for the day today.

Today's Intraday Picks:
Tata Steel
Bank of India
Orchid Chemical
Unitech
RCOM
For levels and targets download the file by Click Here

Keep an Eye on Videocon Industries, REC, Suven Lifescience can recovers from intraday lows.

Good Luck

Tata Teleservices Maharashtra Ltd

A part of the Tata Group of companies, it runs the brand name Tata Indicom and another Tata company,Tata Teleservices, holds a 38% stake in the company. It was formed after acquisition of the erstwhile Hughes Telecom (India), and was then renamed as Tata Teleservices (Maharashtra) and offers telecom services using CDMA technology. It is licensed to provide telecommunication services in the states of Maharashtra (including Mumbai) and Goa. It has invested about Rs.3,000 crore in state-of-the-art infrastructure in these states.
It has over 1.29 million customers in Maharashtra and Goa and offers telephony and ISP services in the cities of Mumbai and Navi Mumbai, and 137 towns across Maharashtra.
The financial performance has been consistently bad. The only saving grace being the factor of “consistency”. What is suprising is that the compnay, despite operating in such lucrative states, Maharashtra and Goa, is unable to make profits.
For the third quarter ended 31st December 2007, on a QoQ basis, the net sales of the company rose 5% at Rs.439.76 crore. Operating expenses rose 3% and the company’s EBIDTA was at Rs.128.33 crore, up by 20%. OPM improved from 25.45% to 29.18%.
The total expenditure stood at Rs.444.88 crore of which 26% was on account of depreciation, another 25% was due to interconnect and access costs. The company, in Q3 FY08, spent Rs.76.13 crore on marketing and promotional costs.
Even after the interest outgo of Rs.41.92 crore, the company managed to stay in the positive zone but it was only after this that company slipped into the red. The main culprit being the big bill of Rs.113.71 crore on account of depreciation. This ate away most of the margins and dragged the company into losses. This has always been the trend, that’s the “consistency” factor at work here. So at the end of it all, the company reported a loss before tax of Rs.27.30 crore as against a loss of Rs.49.04 crore in Q2. Net loss was at Rs.27.43 crore as against Rs.49.31 crore in Q2 and Rs.59.17 crore in Q3 FY07. So the only solace being that at least the losses are coming down!
During the nine month ended December 31, 2007, Foreign Currency Convertible Bond(FCCB) holders holding bonds of the value aggregating to $46.18 million exercised their option to convert their holding to equity thus resulting in an increase in the paid up equity share capital by Rs.83.75 crore.
The DoT had allowed telecom service providers to use alternate technology under their existing Unified Access Service Licences after obtaining DoT approval and on payment of the prescribed fee. Accordingly, the company had applied for GSM spectrum for the Telecom Circles of Maharashtra and Goa, and had paid non-refundable fee of Rs.393 crore. Since then it has received the ‘in principal approval’ from the DoT.
The stock is currently quoted at Rs.33 and this has certainly come down from a high of Rs.65 it had touched in January, which was in anticipation that the company might manage to turnaround.
The company might take some time to come out of the woods fully. Stay invested only if you have the patience and have money, which you don’t mind lying idle for some time now.

Source: sptulsian.com