SumanSpeaks: The Information Super Highway

Sensex spared a steep drop:Select side-counters were in demand due to their strong Q4 results: Southern Online Bio Technologies Ltd moves up: Aptech Ltd recommended to select/ few investors, hits the buyer freeze:Lok Housing Ltd hits the buyer freeze: Sanguine Media Ltd hits the buyer freeze: Pratibha Industries Ltd and Flat Products Equipments Ltd hits consecutive buyer Freezes:Some Finance & Investment Companies like IL & FS, Shriram Asset Management, MB Parikh Finance, Dhanprayog Investment, GDL Leasing, Kshitz Leasing, Indian Bank Housing, Rose Investment, Sita Enterprise, Rajdhani Leasing, JK Investment, etc. did well on the bourses. But Housing finance major HDFC lost 1.8% to Rs 1655: FMCG giant Hindustan Lever (HLL) plunged 5% to Rs 199.05, soon after its Q1 results hit the market in early afternoon trade:Brent crude oil prices hovered above $68 a barrel following sharp gains at the end of last week, with investors still on the edge over a foiled plot to attack oil fa...

Recovery nipped in the bud; Market Breadth turns Positive: The market may remain range bound today as traders may refrain from taking fresh positions ahead of holidays. The market remains closed on Tuesday (1 May) and Wednesday (2 May) for public holidays. Southern Online Bio Technologies Ltd, doing well: There is a meeting of the executive committee gpoing on at present in Premier Explosives Ltd, to thrash out future course of action, about the date of declaration of Results and also for making the smooth arrival of the new Company Secretary. The directors have come from their overseas Joint Venture Spots and detials are awaited:Sanguine Media hits the Buyer Freeze: --:UPDATED:-- The market was off the higher level reached after a recovery from the lower level from an initial sharp fall. IT stocks rose even as banking stocks fell after ICICI Bank reported disappointing Q4 results along with plans for a large equity issue. An easing rupee also aided the recovery in IT stocks, while...

Weekly Technical Update from Kotak Securities Limited: The week past and expected: According to daily and weekly chart the market has pause the trend nearing the major resistance of 14300/4200. It was quite obvious that the market would halt at major resistance as the run up was huge and uninterrupted. The correction of Friday was the biggest correction of the entire rally between 12425 and 14238 (3617 and 4217 nifty). Though it was severe it was highly needed as the rally was backed by only 15 stocks out of the basket of 50 stocks on Nifty (On the Sensex just 9 stocks out of the basket of 30 stocks) if compare the data of last three months. The sectors who have taken lead in the current rise were mainly Oil & Gas, Telecom, Metals and Power equipment. The momentum sectors like Technology, Auto and Cement stocks completely failed to participate and were underperformer to Sensex/Nifty by more than 10 %. This has resulted into total underperformance of Traders and Investors/MFs in...

Reliance Energy: Regulatory impact on margins: Performance summary: Reliance Energy has announced mixed results for the fourth quarter and year ended March 2007. For FY07, the topline has grown by 42% YoY. The company has taken a significant hit on its profitability on account of a MERC order in October 2006, whereby it has written off an amount of around Rs 1 bn from its electricity business profits. Consequently, the operating margins have declined from 17.8% in FY06 to 8.4% in FY07. However, the company has managed to pare this impact on its bottomline, duly aided by lower depreciation and tax expenses. Consequently, net profits have grown by 23% YoY during the fiscal. The board has recommended a dividend of Rs 5.3 per share (dividend yield of 1%). What is the company’s business? Reliance Energy is a leading private sector power company in the country and has presence in generation, transmission and distribution in Mumbai, Delhi, Orissa and Goa. The company has an installed gener...

Pharma: The year so far ... The Indian stockmarkets have exhibited a volatile trend from the start of the year till the present date influenced by a host of domestic and global factors. This includes global factors such as the likely slowdown in the US market, unwinding of the yen carry trade and domestic factors such as rising inflation and CRR hikes by the RBI in a bid to curb liquidity. In this scenario, the Sensex has lost marginal ground (0.1%) during the period January 2007 to April 2007. While the healthcare index lost 2% during the same period, some pharma stocks have managed to outperform both the Sensex and the BSE Healthcare index by a wide margin. In this article, we shall take a look at some of these stocks. Biocon: Biocon has been the top performer in this four-month period with gains of 29% largely due to the strong results announced by the company both in the third and the fourth quarter of the fiscal year FY07. The two statins 'Pravastatin' and 'Simva...

Monetary Policy: Steps towards convertibility: It is wonderful how we Indians take big steps when push comes to shove. We do not know whether it is a bid to reduce the need for Reserve Bank’s intervention in the foreign currency markets to keep the Rupee from appreciating or if it is the confidence in the nest egg of US$ 203 bn that the RBI has amassed over the last few months. But finally in its annual policy statement released, the RBI is allowing Indians and Indian entities to have freer access to dollars and overseas financial markets. Thankfully, the RBI seems to have woken up to the perils of containing the Rupee appreciation at the cost of the domestic economy. It has tried to reduce pressures exerted by the NRI deposits (US$ 3.2 bn between April and December 2006 as compared to US$ 0.3 bn in the same period in 2005), by reducing the ceiling on FCNR (B) deposits as well as on the NR(E)RA deposits by 50 basis points each. Instead of itself buying the excess of dollars in the fo...

Banking: Treasury misnomers... A spurt in interest rates over the past year raised concerns over Indian banks' balance sheets. These banks took a substantial hit on their investment portfolios on account of the marked-to-market (MTM) provisioning of investments in the available-for-sale (AFS) category. Most banks transferred long-dated G-Secs to the held-to-maturity (HTM) category by taking big one-time provisioning hits over the last two years. This helped to insulate their income statements to an extent. Banks have also been gradually reducing the tenor (duration) of their investments to de-risk their investment portfolios against interest rate volatility. Those that still hold a large proportion of their investments in the AFS category have taken hits in 4QFY07, though lower than that in 4QFY06. In 4QFY07, the rise in shorter-end paper (2-year) has been steep compared with longer-tenor paper (10-year G-Sec). PSU banks that have a relatively high proportion of their books in AFS...

Move to check rupee rise New Delhi/Mumbai, April 27: Policy-makers are weighing options to limit the fallout of huge dollar inflows on the economy. Opinions within the government and the RBI are veering towards market stabilisation schemes and curbs on external commercial borrowings (ECBs) to negate the impact of the dollar deluge. To begin with, the Reserve Bank of India today raised the ceiling of the market stabilisation scheme (MSS) to Rs 1.10 lakh crore for 2007-08 from Rs 80,000 crore at present. The government, in consultation with the RBI, increased the ceiling for the outstandings by Rs 30,000 crore for the year 2007-08, the central bank said. Market stabilisation schemes are RBI interventions to suck out excess money from the system through bonds. Under the scheme, the RBI conducts periodic auctions of dated government securities and treasury bills. The interest on the money raised under the MSS, which is kept in a separate account with the RBI, is paid by the government. ...

Economy Crawls, Raising Recession Fears: Economy Crawling at Slowest Pace in 4 Years, Raising Fears of Recession: The worst economic growth in four years is raising concern that troubles in the U.S. housing market will spread and throw the country into a recession before the year is out. The economy practically crawled at a 1.3 percent pace in the opening quarter of 2007, the Commerce Department reported Friday. That was even weaker than the sluggish 2.5 percent rate in the closing quarter of last year. The main culprit in the slowdown: the housing slump, which made some businesses act cautiously. The bloated trade deficit also played a role. Consumers largely carried the economy in the first quarter. But will they stay resilient in light of the troubled housing market, fallout from risky mortgages and rising energy prices? "The No. 1 question is can the consumer continue to play Atlas while the housing market crumbles around him?" said Richard Yamarone, economist at Argus R...

House Prices Slide as Property Glut Grows: Buyers Gain Bargaining Power in Busy Spring Selling Season; Auctions in Palm Springs Tighter credit and a growing glut of properties are depressing an already weak U.S. housing market, wrecking the industry's hopes for an early rebound. That leaves buyers in a strong position to negotiate for bargains during the spring home-shopping season, the busiest time of the year for housing sales. On April 24, the National Association of Realtors reported that sales of previously occupied homes in March dropped 8.4% from the prior month to a seasonally adjusted annual rate of 6.12 million units -- the largest monthly drop since 1989. The trade group said the median price for homes was $217,000 in March, down 0.3% from a year earlier. The data reflect sales that closed in March; most of those were negotiated in January and February. The Realtors said bad weather in February hurt March sales. The drop in March followed three months when home sales i...

Drop knows no respite: Gateway Distripark Ltd(recommended at Rs.167)remains firm in a bad day. Keep buying on all declines: BSEL Infrastructure Realty Ltd shruggs off initial losses: Southern Online Bio Technologies Ltd closes flat when the Sensex drops more than 300 points. Buy as much as you and hold on for 45-60 days to see the magic: Regallia Realty Ltd which recently changed its name to Sudsun Housing Ltd to fool the investors is again rising, inspite of company making constant losses; just on the news of preference issue at Rs.24.5:Speculative positions are built up in Peerless Abasan Ltd:Teledata Infosystem, a companpy having no focus and going acquisition after acquisiton falls flat on the nose, after I gave a sell call yesterday. Lot of operators were active on the counter. It will go straightway down to around Rs.54, before falling further. Just keep watch:Flat Products Equipments Ltd(recommended at Rs.94 and Rs.105) hits another Buyer freeze on a day when the markets tanks:...

Sensex retracts from two-month high, earns a handful of points: Buy Southern Online Bio Technologies Ltd as much as you can and keep holding for at least 45-60 days:Keep buying Premier Explosives Ltd:As mentioned earlier, the real estate prices have now started to correct in the economy and medium segments also:So lighten your positions in the real estate sector:Keep holding Paramount communications Ltd for some wonderful gains later: Flat Products Equipments Ltd(Recommended at Rs.94 and Rs.103) hits another buyuer freeze: Dhoot Industrial Finance and Kakatiya Cement Sugar Ltd hits the buyer freeze: Bharti Airtel Ltd still looks strong on the charts(not fundamental view) and hence keep holding with a SL of 5% from the CMP: [Updated] The market ended a shade higher today in volatile trade. Volatility worsened in the last one hour of trades due to the scheduled expiry of the April 2007 derivative contracts. Sensex heavyweights, Reliance Industries (RIL) and ICICI Bank, weakened in mid...

Sensex surges; RIL sets record:There are strong rumours of starting of commerical production in Southen Online Bio Technologies Ltd. The production had already started in the fourth quarter of the last year, albeit not for commerical use: The market surged in early trade tracking firm global markets, and on good rollover of the April futures contracts to the May 2007 series and on data showing strong FII inflow. At 10:16 IST the Sensex was up 120 points, at 14,338. It had struck 14,383.72, at the onset of the session, which is also its highest in more than two months, since 20 February 2007. The market-breadth was strong. Against 1,178 stocks that rose on BSE, 338 declined. A total of 40 shares also remained unchanged. Gainers outpaced losers by a ratio of 3.48:1. The BSE clocked a turnover of Rs 608 crore. Grasim surged 3% to Rs 2520. The Aditya Birla group company reported robust Q4 results after trading hours on Wednesday. Grasim reported 80.5% growth in net profit in Q4 March 200...

Saudi Kidnap, Rape Victim Faces Lashing for 'Crime' of Being Alone With Man Not Related to Her: See the way the law is being interpreted: I do now know how people live in those countries!!!!???: A 19-year-old Saudi woman who was kidnapped, beaten and gang raped by seven men who then took photos of their victim and threatened to kill her, was sentenced under the country's Islamic-based law to 90 lashes for the "crime" of being alone with a man not related to her.The woman is appealing to Saudi King Abdullah to intervene in the controversial case."I ask the king to consider me as one of his own daughters and have mercy on me and set me free from the 90 lashes," the woman said in an emotional interview published Monday in the Saudi Gazette."I was shocked at the verdict. I couldn't believe my ears. Ninety lashes! Ninety lashes!" the woman, identified only as "G," told the English-language newspaper. Five months after the harsh jud...

Racist German army simulates blacks for target practice : Of course, such racism is the worst kind of stupidity and evil, but in case you missed the real point here, they are training their soldiers to come over here to the US to be EU/UN “peacekeepers” and we should ALL be upset about that. That is the whole reason for this type of training, to get the European “Rapid Reaction” troops ready to pounce on America once the New World Order is in full swing, to enforce the global government system. If you don’t like it, then stop supporting any aspect of the New World Order, period. That includes the Perpetual War, the torture, the CFR and UN globalism, the surveillance society, the cashless society, the National ID (global actually), biometrics, FEMA camps, gun control, the North American Union (SPP), the open borders, the GM crops, water fluoridation, the electronic voting machines, exporting jobs and manufacturing abroad, the child-takeover, the toxic vaccines, the microchip implants a...

Dow Closes Above 13,000 on Earnings Data:Dow Ends Above 13,000 As Earnings Reports Push Stock Market to Historic Heights: Wednesday April 25, 2007: It looks like cause for celebration: The Dow Jones industrial average surged from 12,000 to 13,000 in just six months. But appearances can be deceiving, and there may be more reason to worry than rejoice about Wall Street's latest accomplishment. Stronger-than-expected profits from several large companies helped push the stock market to historical heights. But many big corporations, including the Dow components, made a chunk of that money overseas, where economies are growing faster than in the United States. And many of the same worries that weighed on investors earlier in the year remain: rising energy costs, a slumping housing market and a possible credit crunch. Still, the stock market's best-known indicator swept past its latest milestone shortly after trading began Wednesday, and even made it past 13,100, rising as high as 13...