SumanSpeaks: The Information Super Highway

Telecom: The rising! The great Indian telecom story surged ahead during 2006, with even more vigour than what was seen in 2005. The base fuel for the growth of the industry in 2006 was the swelling subscriber base. The targets for mobile subscribers were met ahead of deadlines. Encouragingly enough, a larger share of these numbers was seen coming from non-metros. And in October 2006, when the India mobile telecom industry set a world record for the maximum number of monthly addition (6.6 m), the maximum growth was recorded in circles ‘B’ and ‘C’ (78% of the new GSM subscribers were from these circles). This vindicated our stand on the sector as was outlined by our view at the end of 2005. The impressive performance in 2006 would not have been as superb, but for the efforts of the regulatory authority and the drive of telecom operators. The year saw the roll out of a host of regulations that built up healthy competitive markets. The private players, on their part, left no stone untur...

Software: Growing strength by strength… Indian software industry continued its strong growth momentum during 2006, as the ‘global delivery model’ gained greater traction among the outsourcers. While volume growth for tech majors remained robust throughout the year, we were also witness to a host of companies spreading their wings wide into the global marketplace. However, relative to the benchmark BSE Sensex, the BSE InfoTech’s performance was a bit subdued. While the performance of top players (Infosys, TCS and Satyam) was above par, the laggards of 2005, like MphasiS and NIIT were amongst the picks of the lot. Our 2006 assumptions Vs reality. Increasing global clout: At the end of the previous year, we had expected Indian software companies to increase their clout in the global technology industry. Our assumptions were backed by Indian companies’ inherent advantages like low cost and highly skilled labour, time zone differential, enabling regulatory environment, mastery of the art ...

India Inc.: We are the world: The dictum of ‘the world is flat’ is not being practiced anywhere better than in the emerging markets of India and China, which are churning out companies that are vying for top spot in global markets and industries. As we have gathered from the managements of some large corporates, the decision of most of the Indian companies to globalise is driven by their need to create competitive advantage and sustainable stakeholder value over the long-term. While their growth models might not factor in the quantum of prospects from global endeavours, we believe that overseas markets might bring them higher revenues as well as strong volumes. The global attempts are also likely to provide them with opportunities for growth enhancing acquisitions. The Indian companies who are charting a global growth path are not only gaining global market share or making major acquisitions, they are also emerging as business partners and competitors for the world’s largest corporati...

The Execution of the former Iraqi dictator by the US backed government in Iraq, is a disappointing news before the New Year's Eve: Carrying out Capital Punishment for any form of crime will only brutalise the society : Capital Punishment has never been a deterrant: Saddam Hussian Still looked defiant before his execution after a "Sham" trial by the US: I salute the courage of this man who stood against the US imperialism: But then every regime throughout the world had committed mistakes; but how many dictators have been put to gallows??? Why is the US silent on Pakistan, which is indirectly commiting henious crimes or genocides in Kashmir (against the Kashmiri Pandits)??!!! The 69-year-old former President Saddam Hussein, a staunch friend of India(who support India on Kashmir issue), who ruled Iraq with an iron fist for over quarter of a century, was taken to the gallows and executed at 6 am local time on Saturday, three years after he was deposed from power by the US;...

Market Ends flat on the F & O Settlement day: Mid Caps rise 21.50 points Small caps end flat at 6836.41: The markets should sustain the current rise with occassional profit booking as Nifty Gets 92 % rolloover: RIL gets 91% of rollover: I am extremely bullish on the overall market: Harrisons Malayalam Ltd and Williamson Magor & Company Ltd mentioned in one my recent mails, Rose on the good prospects of Tea Industry in the coming quarters: Play in select Mid, Small and Micro-Cap Counters: Textile stocks look attractive in the short to medium term as winter demand migh pick: In the US Dow Ends Down 9 points, Nasdaq Drops 6points after a battery of reports indicated the economy is stronger than expected and raised concerns that the Federal Reserve might be more aggressive about interest rates next year:[Updated]: Buy: Hanil Era Textiles Ltd (BSE Code: 500177) CMP: Rs.18.1. Book Value: Rs.36.71 EPS: Rs.2.36 Face Value: Rs.10 Target: Rs.90--Rs.120 in 12--18 months time frame Pe...

Tomorrow's Market Mantra: The markets are expected to remain positive tomorrow with both the Sensex and Nifty to Open and Close in the Green. Since the oil is now trading at $60.94/ barrel, and overall factors of the India economy looking positive, I do not foresee any correction in the markets in the near future. At best the Large cap Indices could remain range bound for some days after a major rally yesterday. Yesterday Kamal Nath hinted, that a $3 billion FDI kitty,is in the pipeline; ready to enter India. Out of this $1.5 billion will be in the telecom and financial services sectors and the remaining in the Auto Sector. According to the Commerce minister the FDI investment in India could move past $15 billion dollar in the next 12 months. So this is a super bullish statement from the Kamal Nath. But then Marxists could spoil the sport as they might oppose the move. My Recommended picks MRO TECH (Hit the 20% buyer freeze), Landmarc Leisure (hit the 4.6 % buyer freeze), Ess...

California Software Company Ltd ---Updates: California Software Company Ltd (Calsoft) has announced the launch of their "Center of Excellence" in Data and Telecom Solutions at Bangalore. As a product solutions Company, the Company is scaling up to the next level of services. The "Center of Excellence" will help the Company meet the increasing requirements of the customers, who are mainly network equipment vendors, besides working on next generation products & services, including network management the lab will focus on R&D in 3G, Packet Cable, wireless networks and IP based wire line networks.This 'state-of-the-art' facility spread over 30,000 square feet is housed on an exclusive building at Bannerghatta Road, Bangalore. With dedicated networking labs, this will enable the Company service global clients. World's leading network equipment vendors are using some of the products developed by the Bangalore Lab. The Company till date has over 80 IP...

Recommendations of the last week: 1. Ricoh India Ltd( BSE CODE--->517496) at Rs.30: A pioneer in digital office equipment, Ricoh offers a broad range of office solutions with world class support and services, including MFPs, printers, fax machines, and digital cameras. With 394 consolidated subsidiaries worldwide, employing approximately 75,000 people, the Ricoh Group posted consolidated total sales of $17 billion US for the fiscal year ended March 31, 2005 . A global leader, the Ricoh Group currently enjoys No.1 market share for plain paper copiers in Europe, Japan and No.2 share in the USA . In India the company recently amalgamated M/s Gestetner (India) Ltd with itself. Ricoh Company Ltd, Japan, a global leader in office solutions with consolidated revenues of more than US $ 17 bn, completed the merger of its two Indian subsidiaries, Gestetner India Ltd and Ricoh India Ltd. Post merger of two strong brands with proven profitability, Ricoh India Ltd is providing the Indian office...

Security Council slaps sanctions on Iran: UNITED NATIONS - The U.N. Security Council voted unanimously Saturday to impose sanctions on Iran for refusing to suspend uranium enrichment, increasing international pressure on the government to prove that it is not trying to make nuclear weapons. Iran immediately rejected the resolution. The result of two months of tough negotiation, the resolution orders all countries to stop supplying Iran with materials and technology that could contribute to its nuclear and missile programs. It also freezes Iranian assets of 10 key companies and 12 individuals related to those programs. If Iran refuses to comply, the council warned it would adopt further nonmilitary sanctions, but the resolution emphasized the importance of diplomacy in seeking guarantees "that Iran's nuclear program is exclusively for peaceful purposes." Iran insists its nuclear program is intended to produce energy, but the Americans and Europeans suspect its ultimate g...

Mid-cap IT stocks rise high, on the back of Indo-US nuclear Co-operation: Four out of the top 10 gainers from BSE’s A group today were from the mid-cap IT segment viz. VisualSoft, Mastek, iGate and Rolta. My recently recommended Scrips MRO TECH Ltd & California Software Company Ltd closed with decent gains: Agro Dutch Industries Ltd closed in the Postive after the news came out that the company is on the verger of completion of the Can Making plant by March 2007: Mid caps close at 5017.30 up 43.7 and Small caps rise to 6717.28 up 51.84 points: Crude at 62.38 per barrel: My recommended picks Nova Petro, Landmarc Leisure Ltd and Nagpur Power & Industries Ltd hit the buyer freeze today: A host of mid-sized IT firms surged today. The top gainers were Orient Info (up 20% to Rs 22.25), Zensar Tech (up 13% to Rs 237), VisualSoft Tech (up 11% to Rs 77.75), Aztec Software (up 8% to Rs 174.50), Infotech Enterprises (up 7% to Rs 328.50), 3i Infotech (up 6.6% to Rs 185), Helios & Ma...

Vamshi Rubber Industries Ltd: (Update): The company will use the 4 acres of land for expansion of operations. The company is expected to generate sizeable revenue of at least 25% in excess of the present capacity through this expansion. The said expansion will be completed by the end of this fiscal . The company's retail networks are doing excellently well and it is thinking of expansion the sales work force. The marketing department of the company has been revamped and the sales will increase in the coming quarters . The most striking part of the company is that it is able to passs on the increased cost of raw material to the end users. Since the rubber prices are going down it will increase both its top and bottomline in a large way. But even if the rubber prices rises it will not affect the company bottomline in a large way as it is able to pass on the increased cost of raw materials to the end users as mentioned earlier. This is amply reflected in the last quarter results w...

Immense volatility on the bourses pushes the Sensex in the Red: Mid Caps Close at 4922.85: Small Caps Close at 6612.72 down 22.08 points: Keep buying good small and mid cap counters: Crude inches higher to $63.94 per barrel, up 48 cents: Vamshi Rubber Industries Ltd Recommended , yesterday morning Hits the 20% Buyer Freeze & Relaxo Footwear recommended some days back hits the 20% Buyer Freeze; while Agro Dutch Industries Ltd refused to go down below Rs.22.5: The market settled in the red after witnessing high volatility throughout the yesterday's trading session, moving between positive and negative zone. However, metal stocks were in demand led by Tata Steel. The Sensex settled 41.80 points lower at 13,340.21. It swung sharp 335 points for the day from an intra-day low of 13232.56 and intra-day high of 13568.09. The S&P CNX Nifty lost 16.45 points to 3815.55 The total turnover on BSE amounted to Rs 3672 crore which was lower than Tuesday's Rs 4183 crore The market...