Japanese Exporter Stocks Gain on U.S. Economic Data, Yen's Drop:Indian Markets set to consolidate at this levels: Play on the undervalued Mid, Small & Micro-cap counters as all factors look positive:[Updated] Nov. 21, 2006:

Japanese exporter stocks advanced after an index of leading U.S. economic indicators rose for a second month in October and the yen weakened to a record low against the euro. Canon Inc. and Fanuc Ltd. rose. ``Large technology companies and other exporter shares may gain today with help from better-than-expected U.S. economic data and a cheaper yen,'' said Yutaka Miura, market analyst at Shinko Securities Co. in Tokyo. Limiting gains, Toyota Motor Corp. declined after saying 296 billion yen ($2.5 billion) of its shares will be offered to investors at a 2.01 percent discount to yesterday's price. The Nikkei 225 Stock Average added 24.57, or 0.2 percent, to 15,750.15 as of 9:37 a.m. in Tokyo. The broader Topix index fell 1.27, or 0.1 percent, to 1532.67. Nikkei futures expiring in December increased 0.2 percent to 15,750 in Osaka and 0.1 percent to 15,755 in Singapore. Mizuho Financial Group Inc. fell after reporting a 2.1 percent drop in its second-quarter net income while Mitsubishi UFJ Financial Inc. rose after it raised its annual profit forecast by 16 percent. Both banks increased their dividends. Canon, the world's largest digital camera maker, gained 50 yen, or 0.8 percent, to 6,170. The company made almost three-fourths of its total sales overseas last year. Fanuc, the world's biggest factory robot maker which made half of its sales outside Japan, climbed 220 yen, or 2.2 percent, to 10,550.

Leading Indicators:

The Conference Board's index of leading U.S. economic indicators increased 0.2 percent in October, pointing to a gradual strengthening of the expansion early next year. The gain followed a revised 0.4 percent September increase that was bigger than initially reported, the New York-based group said yesterday. The index points to the direction of the economy over the next three to six months. The yen declined to 151.29 per euro at 5:14 p.m. in New York, from 151.05 on Nov. 17. It earlier reached 151.67, the weakest since the euro's January 1999 debut. The Japanese currency slid to 118.07 per dollar from 117.75. It recently traded at 118 yen. Toyota, the world's second-largest automaker, fell 70 yen, or 1 percent, to 6,890, following yesterday's 4.1 percent drop. The company said 296 billion yen of its shares will be offered to investors at 6,820 yen a piece. Mizuho, Japan's second-largest bank by assets, dropped 10,000 yen, or 1.2 percent, to 813,000. It reported a 2.1 percent decline in its second-quarter net income as higher interest rates stalled demand for loans. The company left its full-year profit forecast unchanged at 720 billion yen. By contrast, Mitsubishi UFJ, Japan's biggest bank, advanced 20,000 yen, or 1.5 percent to 1.4 million after increasing its annual profit forecast to 870 billion yen yesterday for the year ending March 31. Net income for the six months ended Sept. 30 dropped 29 percent from a year earlier to 507.3 billion yen, lower than its preliminary estimate of 520 billion yen. Mizuho increased its dividend to 7,000 yen from 4,000 yen, while Mitsubishi UFJ raised its payout to 10,000 yen from 7,000 yen. [From internet]

Market view for today: Oil is trading at $59.08/barrel up 0.30 cents, as OPEC threatens to cut production, but a rise in production by the Non-OPEC Countries & Compartively warm winter in the days ahead should stem the tide:

The market is expected to consolidate today after miraculous pull back by the Pivotals yesterday. Most mid and small caps which are undervalued will give better returns in the long term. So keep holding some of them.....The Asian markets doing well. Yesterday Nasdaq closed in the Green. With Oil still below $60 per barrel and hence I do not forsee any big correction in the markets. I have said yesterday that it was just a minor profit booking and not a correction. Exit all the metal counters and invest in companies which uses metal as raw material. Yesterday RTS Power Corporation Ltd spurted on late buying due to its good order book position and starting of trial run in the new plant. Some canards are being spread by some persons on this company, please ignore them.

One of the person who is sending all such messages had himself recommended the scrip last year when it crossed Rs.140. Now that he has sold it is trying to spread wrong messages across, to corner the stock and enter it. This is the same person who recommended a junk stock called Peerless Abasan Finance Ltd, which posted almost nil income with net profit sinking to (-) Rs.14.5 Lakhs[ Rs.3 lakh loss in the same period previous year] inspite of his projecting it as a "Great" company. Peerless Abasan Finance Ltd is a Kolkata Based company and I do not have to learn from him about the management details. Exit the stock on any rally and enter some companies which has a growth story in place. One of my recommended stock Avon Organics Ltd is not doing well because the company came out with "bad" results for the September quarter . The Sales, operations and profitability of the company was affected due to steep fall in selling prices, increase in Raw material prices in Diketene division and delay in getting permission for sales from regulatory authorities in Bio-tech Division. The overheads could not be obsorbed on reduced sales resulting in huge loss in the last quarter.

Steps taken to stem the loss and increase the profitabilty:

To overcome the present crisis, the company is adding a few more high value new products which will add to sales and bottom line substantially in the quarters to come. The back ward integration benefits, which has already been undertaken, will also be added in the coming quarters. The Company is also working towards new marketing arrangements which is expected to result in favorable opportunities. I hope in the following quarters due to expected fall in the molasses prices[due to fall in sugar prices in the days ahead] the company's margins will increase considerably. When I recommend as scrip it is normally for 8 months to 18 months time. Hence unnecessary spending of time on a scrip if it goes down temporarily should not be done. Most of the scrips are very well researched and will give u benefit in the long run. Rolta Ltd recommended at Rs.139 is going great guns so also Cummins (I) Ltd( recommended at Rs.167, Rs.173 and Rs.193]. Coral India Finance Ltd is also doing well. Please avoid entering Tata Steel Ltd(TISCO) at this levels. Keep holding Rolta with a target of Rs.282--Rs.300(its ultimate target). Solar Explosives Ltd is also a good company Keep watch....

Also a new IPO of Infoedge (India) Ltd, the promoter company of Naukri.com, Jeevansaathi.com, 99acres.com and executive search firm Quardangle[equity shares at a price band of Rs 290 - 320 per share which is 29 - 32 times of the par value of the share], should open in the postive today. If its goes above Rs.400 then book profits[at least partial] on the counter. Naukri.com was started in 1997 and then had a phenomenal rise in the following years. The IPO got oversubscribed more than 55 times.

Keep watch on Conart Engineers Ltd. Please avoid playing on scrips in which u have no idea or knowledge. It is better to play on seclect counters rather than play on 100s of them on some news. Please keep holding ur positions as the stocks are now gradually getting transferred to strong hands. The markets generally remain "Quiet" in the late November and early December. The markets now looking attractive from technical point of view. Keep watch at 13, 380 level of sensex. Yesterday there was a strong rally on IT counters led by Infosys Ltd after the company's ADS got subscribed a multiple times. The promoter's stake in the company is getting reduced--please note this point. The ADS price of Insosys Technology Ltd has been determined and today the stock might show some weakness on the bourses.

Keep close watch on another good company named Mphasis BFL Ltd. at the current price.

Also take a look on State Bank of India Ltd as there is hardly any chance to get the Reserve Bank of India (RBI's) draft circular on exposure to capital market by banks to be made a full law. It is to be noted that Yesterday The Bankex suffered a steep fall as banking stocks were hammered following that announcement from the RBI.

Stay away from the Sugar Companies except Balrampur Chini Ltd or Rana Sugars Ltd which have another story to tell. More in the following mails........ Best wishes, Suman Mukherjee India. www.sumanspeaks.blogspot.com www.eindiabrokers.com