All round Rally in Dalal Street to begin shortly: Look for actions in Large, Mid and Small Cap counters: Cheers!!

Today the markets are set to factor in escalatioin of the crude prices and also the rate increase by the Chinese Central Bank.

China's central bank raised interest rates Friday evening, the latest in a series of moves by the Chinese government to choke off a speculative lending and investment binge that threatens to saddle the country's banks with more bad loans if the economy slows down.

The People's Bank of China raised interest rates for one-year bank loans and bank deposits by 0.27 of a percentage point each. Economists had been predicting an interest rate increase, China's second this year, after government statisticians announced last month that economic growth reached a torrid 11.3 % annual rate in the second quarter. The government has already increased restrictions on bank lending policies, raised bank reserve requirements and even reprimanded regional officials who pursue speculative construction schemes in defiance of Beijing's instructions. Chinese officials have hinted at further brakes on the economy in the months to come.

The People's Bank of China said in a statement that the rate increases were intended to "curb demand for long-term loans and the overly rapid expansion in fixed-asset investment." The interest rate increase came despite announcements in the past week that consumer prices had fallen in each of the last three months and that growth slowed last month for industrial production and for investments in factories and other fixed assets. The latest data lessened somewhat the pressure on Chinese central bankers to act. The People's Bank of China has been much slower than the U.S. Federal Reserve to raise interest rates over the past two years. Keeping rates low has made it a little less attractive to invest in China. This has slowed a flood of speculative money that had poured into the country last year and threatened to force China to allow its currency to rise more quickly against the dollar. But relatively low interest rates have also reignited a frenzy of construction of apartment buildings and factories. Investors have borrowed heavily from state-owned banks in the hope of reaping large profits if the economy continues to expand rapidly. If growth falters, these loans could be added to the banks' already large portfolios of bad debts. While industrial and price statistics for July gave some signs that problems were under control this year, bank lending and the money supply continued to rise last month. That prompted many analysts to predict that China could face higher inflation and loan defaults in the future if not enough is done to tackle the investment boom now. HERE IN LIES THE CATCH IF THE CHINESE ECONOMY SLOWS DOWN THEN the Chinese government might resort to what is potentially its biggest weapon for slowing the economy: allowing faster appreciation of the Yuan. This would make Chinese goods more expensive overseas, slowing demand for them and curbing the growth of China's enormous export sector, steps that the United States, the European Union and Japan have periodically requested.

This wouls also make Indian Metal and Textiles sector look more attractive. Hence today we might see a rally in the metal and textiles counter.

Though there has been a slight escalation in the crude prices I do not think it will affect the Indian stock markets in a large way. The Indian markets are expected to open in a subdued manner taking cue from the Asian markets but is expected to close in the green. The Indian economy is very little dependent on the Chinese economy, but if both the USA and the China slows down there might be some concerns if the domestic demand is unable to lift the supplies. [With inputs from the Internet]

On Last Friday, all must have enjoyed the late call on:

Helios & Matheson Information Technology Ltd (BSE Code--->532347), which closed at Rs.155.55 up 6.58%. This software company has recently acquied a software company in US( refer to the report presented in the blog some days back).

The stock still looks very attractive and could be purchased for targets of Rs.170, Rs.335 & Rs.500.

This is one of the highly undervaled stock considering that it has an P/E of ONLY Rs.8.1 whereas almost all the large caps software companies starting from Infosys to Satyam all trade at a P/E not less than 25. The software stocks are generally insulated from the high crude prices.

The stocks which are looking hot are: 1. California Software Company Ltd at Rs.73.75 with targets of Rs.180 and Rs.250 The shares of the company are just not moving inspite of the company coming up with a rights issue at Rs.66 and the company having purchased a Japanese company, CODEX, which is into making of software for commodity exchanges in Japan. The acqusition of CODEX reminds us of another Indian Company, viz. Financial Technologies Ltd, which rose from Rs.50 to more than Rs.1800 in less than 2 years. Good promoter holding and also good growth of the company should attract investors to go for the kill. It should cross Rs.100 within a short time as it is one of the cheapest stock in the Software sector.

2. Tips Industries Ltd at Rs.22.65 (BSE Code-->532375), with targets of Rs.37 and Rs.55.

The company went up with huge volume on last Friday. The company is into entertainment and media business. It is basically into movie making, Music and Artist Management.

Tips today owns more than 3,500 titles of which a minimum of 10 have been 10 million sellers, and over 15 have grossed more than 5 millions in sales and another 20 have bagged sales of about a million. Since the year 1981, Tips has the highest number of gold and platinum discs to their credit in comparison with any other record label in India. Tips also holds soundtrack copyrights of at least 50 Hindi movies, while the soundtrack copyright of each movie costs about a million dollars and another million dollars is spent on promotion.

Similarly, Tips boasts of its own distribution system. It possesses a set of distributors handling only Tips products, an exceptional phenomenon in the Indian music industry as mostly distributors are found dabbling in the product of more than one record label. This team of distributors serve more than 1000 wholesalers across the length and breadth of the country who, in turn, serve more than 4,00,000 retailers.Tips also owns two factories which use internationally recognized, state of the art machines specially imported from Italy and Denmark, such as Otari, Lyrec and Tapematics. These factories incorporate digital bin mastering facilities, work on just-in-time inventory management system and use in-house logistics facilities to deliver more than 1,50,000 cassettes per day to the Indian market.

The company is coming up with a Preferential issue at a price of Rs.45 per share. The company is undergoing massive restructuring exercise. The company should do well in view of Star Coming up with a DTH platform and government going for the implementation of CAS within a short time. This is a turnaround case......the net profit for the FY-05-06 shot up to 63.52 Lakh in place of a net loss of Rs.62. 77 Cr in the same period previous year. The EPS of the company shot from (-) Rs.5.56 to (+) Rs.0.50.

In the June quarter sequentially speaking the company did exceptionally well. The net profit for the company was at Rs.14.3 lakh compared to a net loss of Rs.88 lakh in the March quarter, 2005-06. In Q0Q basis the net profit dropped marginally to Rs.14.3 lakh compared to Rs.16.3 lakh in the same period previous year.

This is a major achievement for the company. The company in the past released the music of some of the hit films including, Coolie No1( 1995), Raja Hindustani( 1996), Soldier( 1998), Jab Pya Kissise Hota Hai( 1998), Raaz(2002), The Legend of Bhagat Singh( 2002), Fida( 2004) and Hari Om( 2005).

The company in the last month released the music of its maiden Punjabi venture "Dil Apna Punjabi" with the live performances by the cast - Harbhajan Mann, Mahek Chahel & Neeru Bajwa.

3. Garnet Construction Ltd at Rs.45.10 with a target of Rs.75 and Rs.130.

The company is selling plots in Lonavala and eslwere to domestic as well as overseas clients which is expected to give them huge returns in the days to come. The company is in construction work in an around Mumbai and is expanding its operations elsewhere. The share price of the company is highly undervalued considering its peers.

P/E Ratios of some of the major construction/engineering companies:

1.Unitech Ltd---->406.00

2. Mahindra Gesco---> 209.0

3. Gammon India--->27

4. IVRCL Infrastructure-->26.4

5. Simplex Construction-->26.1

6. Nagarjuna COnstruction-->24.1

7. Patel Engineering---------> 23.6

8. Madhucon Projects--->22.0

9. Hindustan Construction---> 19.3

9. Garnet Construction--->10.7 at Rs.44.3. Hence it has a chance of 100% appreciation from this price within a short time.

4. E....S.......at Rs.25 with a target of Rs.35 and Rs.50.

5. S...K....I....at Rs.62 with a target of Rs.125.

6. Oriental Carbon and Chemicals Ltd at Rs.32 with a target of Rs.40 and Rs.75.

The company is one of the leading producers of Carbon Black. It has commissioned a 100% Insoluble Sulphur Export Oriented Unit in September 2005 .

Considering the existing capacity of 5000 MTPA of Insoluble Sulphur also at Dharuhera the total installed capacity for the Company for Insoluable Sulphur is now 10000 MTPA making it one of the major manufacturers of Insoluble Sulphur in the world. The capacity utilization of the 100% EOU shall increase progressively during the coming months and the real impact of the new unit on the performance of the company should be apparent in this fiscal i.e. 2006-2007. The names of other two will be given during the market hours tomorrow so keep watch.

Punter's picks-->

1.Buy Chandra Prabhu International Ltd (BSE Code--->530309) at Rs.8 with a target of Rs.20 and Rs.35. I am running short of time today and hence will post other details later.

2. Ledo Tea company( BSE Code--->508306) at Rs.51.2, with a price target of Rs.70, Rs.85 and Rs.108. Resistance-->Rs.60. SL-->42.

Remember punter's picks carry high risk and high gain and hence those who are averse to risk taking please stay from these picks. I am very happy today as SumanSpeaks has crossed a great milestone in its march ahead. It has crossed the membership figure of the Original SumanSpeaks (848 members) which is now known as KukkuSpeaks and whose name has been changed without my consent and keeping me in dark. I had also built that group by my blood but you can see the result of such sacrifice…Leaving that piquant story, Our group now has 849 members which has been achieved in less than 6 months time after formation of this group.....I thank all the members of my group who have stood by me in the thick and thin. I would be doing injustice if I do not congratulate, Abdul Ahad, Gaurav Gandhi, Gaurav Varsheney, Swapna Srivastava, Nazim Manaswala, Ashad Seikh, Rahul Sharma, Sashi Kant and M B Mahesh Bheema for their wonderful and high-voltage support to for the betterment of this group. Last but not the least I would thank the members of Blackbird Money Club, StockGold, NSEMUMBAIBULL , foresightstocks and the members of a host of other Google and Yahoo groups, for providing me unflinching support and keeping faith on me and my recommendations. I hope to get such co-operation in the days to come. This is a wonderful family I must admit without any pretence and prejudice. Jai Hind, Best wishes, Suman Mukherjee India. http://finance.groups.yahoo.com/group/SumanSpeaks www.bcozindia.com

www.myiris.com

http://stockstorm.wordpress.com/ Note: This Google blog is creating lot of troubles and hence I am in search of another good blog to shift from here. If u cannot access this blog thorough normal route, please use this Pakistani Blog www.pkblogs.com/sumanspeaks, to access my blog.

Also please think 100 times before joining AIII( Association of Individual Investors Group), if u need to save ur name, fame or reputation. Also be careful of a jocker of the Indian Stock market named Bob Singh and also the moderator Rajib Mundra of that group. Look how the group moderator is giving pirated e-books to all without the written consent of the authorities.

The moderator also gave consent to the release of a letter in that group in which Bob's comments about a high appreciated analysts was "He has Raped the markets, with bullshit theories". He also did not spare me....so be careful of that urchin. If that joker, continues with this practise with others also, please don't hesitate to consult me...I will help you so that he is punished or stern action could be taken so that in future these people never play with the seniors or respected analysts.