Concentrate on Small and Mid cap counters: The Oveall Markets looks strong for the days ahead as large FII-inflows are expected to continue:

[Updated at 1615 hours,with the latest, from the Markets]

The markets are expected to move in sideways directions for some more time and hence it will be prudent if one concentrates his attention to those stocks which are undervalued at the current price and which are expected to declare good results or which have a great future ahead, even if they have declared bad resultss. Also, one can focus on stocks which posted good results and have not moved till date. I have already recommended some of those stocks:

1.Premier Explosives Ltd

2. Southern Online Bio Technologies Ltd

3.Sanjivani Parenterals Ltd

4. KEI Industries Ltd

5. Agro Dutch Industries Ltd

6. Noida Toll Bridge Ltd

8. Sanguine Media Ltd at Rs.27 and Rs.34.................I will be recommending some more good stocks in future in small and mid cap areana, as this space has not moved at all even as the Sensex and Nifty touched new highs!!!

Today's latest Market Update: Liquidity concerns pull pivotals lower as the market breath continued to remain weak:KEI Industries Ltd continues it upward journey:Vamshi Rubber Ltd closes, with compartively good volume: Southen Online Bio Technologies Ltd and Premier Explosives Ltd consolidates around the current price as the results' date for both the companies approaches near:The market shouild remain in the sideways mood for some more time: The market was facing intense selling pressure ever since it opened on a bearish note, as profit booking continued at higher levels for the second straight day following a late sell-off of 92 points yesterday, Wednesday, 23 May 2007. Global cues are not very encouraging either. The Asian markets were trading weak, while all the European market declined. The Hang Seng index lost 0.22% while the Nikkei 225 index slipped 0.05%. The Shanghai Composite lost 0.54%. At 14:22 IST, the BSE 30-share Sensex was down 81.42 points to 14,281.84. It opened slightly lower at 14,344.70 and kept on hitting fresh intra-day low as fresh selling is emerging at every small rise, with the latest low being 14,233.03. Its high so far is 14,389.66 The market, was going great guns in the past five trading sessions (from 16 –22 May), took a breather on 23 May 2007, as anxious bulls started liquidating positions in the last hour of trade on the benchmark Sensex's inability to hit a new all-time high. The 30-share Sensex had rallied a sharp 525 points, or 3.75%, from 13,929.33 on 15 May 2007 to 14,453.72 on 22 May 2007. The market is worried about big IPO’s lined up for the month of June onwards. It is believed to be the highest ever capital mobilisation. They opine a lot of liquidity to be sucked-off the secondary markets to make good for primary markets. Although the exact size and date of the initial public offering (IPO) of DLF and the follow-on issue of ICICI Bank are yet to be announced, marketmen expect these offers will compete head to head for investors’ fund of over Rs 24,000 crore next month. Real estate major DLF, which took four months to receive market regulator Sebi’s clearance for its public issue, is expected to hit the market by the end of June with an over Rs 13,000 crore issue. The country’s second largest bank, ICICI Bank, has sought approval from Sebi to sell Rs 17,500 crore of shares to local and overseas investors. The bank has set a target of launching the issue in June. The offer may be raised to Rs 20,100 crore depending on demand, the sale document said. The total turnover on BSE amounted to Rs 3,211 crore, which was muted as compared to Rs 2,703 crore by 13:30 IST. The market breadth, which reflects the overall health of the market, stayed weak as selling continued in small- and mid-cap stocks. On BSE, 1,480 shares declined compared to 1015 that advanced, while 89 remained unchanged. At 10:30 IST, the breadth was positive with 878 shares advancing as compared to 734 that declined. Among the Sensex pack, 23 declined while the rest advanced. Tata Steel was the top loser, down 3.84% to Rs 633.60 on 10.37 lakh shares. It also touched a low of Rs 630.15 in intra-day trade. RBI today (24 May 2007) stopped the purchase of Tata Steel shares by foreign institutional investors (FII) as the foreign investment in the world's sixth largest steel maker reached the permissible limit of 22%. Increasing interest of foreign investors in Tata Steel, following acquisition of Anglo-Dutch steel maker Corus, had pushed up the FII stake in the company by more than 4% in the last one-and-half month. The FII interest has continued to increase in the steel giant, though large number of retail investors exited the company following the dip in share prices of Tata Steel after the acquisition of Corus. According to data available on the Bombay Stock Exchange, the FII stake in the company was 17.24% end March 2007. Telecom pivotals Reliance Communications (RCom) and Bharti Airtel declined for the second straight day following massive cut in tariff, which may impact their profitability. RCom slashed roaming tariffs for outgoing calls by upto 70% to Rs 0.40 per minute on select plans. As a result, the stock suffered a loss of 2.76% to Rs 496.40. The RCom counter saw high volumes of 15.23 lakh shares changing hands on BSE Bharti Airtel also declined 0.93% to Rs 841.30 on reports that it would also announce price cuts within the next couple of days. On BSE, 1.82 lakh shares were traded in the counter. Shares from the banking and financial space saw profit booking after seeing a steady rally for the past few sessions. SBI (down 1.46% to Rs 1286.75), HDFC Bank (down 2% to Rs 1090) and HDFC (down 1.46% to Rs 1775) declined. However ICICI Bank held firm and was up 0.26% to Rs 917, after market speculation that the Reserve Bank of India (RBI) will allow Temasek and Government of Singapore Investment Corporation (GIC) to acquire 10% equity each in the country’s largest private sector lender ICICI Bank as a “one-off case”. State run power generation major NTPC was the top gainer, up 2.70% to Rs 159.85 on 10.57 lakh shares. It is planning a foray into wind power with an investment of over Rs 12000 crore, reports said. The company will have wind energy projects with a total capacity of 200-250 MW. Besides this, the state-run company is working on hydroelectric projects and a few biomass plants. The company is also said to be working with Asian Development Bank, and is planning to rope in a private partner for the new venture. FMCG major Hindustan UniLever (HUL) advanced 1.62% to Rs 201.65 on 4.11 lakh shares. Mumbai-based Temptation Foods (TFL), a frozen food marketer, is understood to be inking a deal with HUL to acquire its marine product business division for around Rs 100-120 crore. The deal would also include transfer of the people managing the marine business in HUL to TFL. HUL’s marine division exports products like crabsticks, shrimps and fish fillets among others. The company had earlier short-listed four bidders for the sale After staying weak for the past few weeks, IT pivotals bounced back and outperformed the market as the rupee traded in a tight range, just off a nine-year high, on Thursday, 24 May 2007, reined in by dealers wary of provoking the Reserve Bank of India (RBI) after it was suspected of intervening to block the currency's gains this week. At 9:45 a.m, the partially convertible rupee was at 40.56/57 per dollar, largely steady with Wednesday's closing 40.550/565 and just off Monday's (21 May 2007) peak of 40.50 -- its highest since May 1998. The market is expecting $4 billion to $5 billion of foreign money to flow into Indian IPOs and equities by the end of June, which should add to the rupee's strength. The RBI bought $2.3 billion in March 2007 in a bid to stem the rupee's rise. While intervention seemed have to have been less aggressive since mid-March, the central bank has been active this week, specially as the rupee approached 40.50. The rupee was also came under pressure after oil rose above $70 today on worries over Iran's nuclear dispute with the West and thin gasoline stockpiles in the United States ahead of peak summer demand. Infosys (up 0.82% to Rs 1942), Satyam Computers (up 1.05% to Rs 457) advanced. A rise in the rupee directly impacts revenue and profit of IT firms, which derive a lion’s share of revenue from exports to the US. Sterlite group zinc producer Hindustan Zinc rose 0.25% to Rs 668 after it raised lead prices by 2.1%, or Rs 2,000 to Rs 96,600 rupees ($2,379) per tonne, effective immediately. The company, however kept zinc prices unchanged at Rs 177,900 a tonne. Technically, the Sensex has strong support at 14,000 level and on the upside faces a stiff resistance at 14,600 level. Similarly, the Nifty has support of 4,180 on the downside, while on the upside there is a near term resistance at 4,300. The annual monsoon is predicted to strike the Kerala coast Sunday, 27 May 2007, four days ahead of its normally scheduled date of arrival on 1 June 2007. From Kerala the monsoon travels upwards to the parched central Indian plans and is expected to bring rains to New Delhi by the end of June. US indices slipped on Wednesday, 23 May 2007,giving back earlier gains as investors showed some caution after the Dow industrials and S&P 500 index briefly touched record territory. While the Dow Jones shed 14 points at 13,526, the Nasdaq Composite was down 11 points to close at 2,577. Oil prices inched higher after a U.S. government report showed gasoline stocks rose unexpectedly, but still not enough to dispel supply fears at the kick-off of the summer driving season. Light, sweet crude for July delivery rose 26 cents to settle at $65.77 a barrel on the New York Mercantile Exchange. Brent crude for July delivery climbed $1.08 to settle at $70.60 a barrel on the ICE Futures exchange in London, while gasoline futures slid 0.41 cent to $2.3104 a gallon. Gold inched up in thin trade on Thursday, while Tokyo futures hardly moved ahead of the release of U.S. data, which should offer new leads to the dollar and precious metals. Spot gold edged up to $661.70/662.20 an ounce from $660.60/662.10 late in New York on Wednesday. The key April 2008 gold futures contract on the Tokyo Commodity Exchange was unchanged at 2,611 yen a gram despite gains in New York's COMEX market. Silver inched up to $13.05/13.08 an ounce from $12.99/13.03 an ounce on Wednesday.[With Inputs from the Internet]

Best wishes,

Suman Mukherjee

India.

www.sumanspeaksplus.blogspot.com

www.eindiabrokers.com

www.bcozindia.com ( Bcozmoney to be precise).