Some scrip buckled the trend in the Friday's fall: My recently recommended Chandra Prabhu International Ltd, Simmonds Marshall Ltd and Sree Rayalaseema Alkalies & Allied Chemicals Ltd closed with minor losses when the markets were down by more than 500 points: Srinivasa Hatcheries Ltd recommended at Rs.62 to the Premium Group members, infact marched ahead to Rs.71.85:Southern Online Bio Technologies Ltd also closed with gains of 3.11% at 19.37:Sree Rayalaseema Alkalies & Allied Chemicals Ltd with good book value and Power Generation capacity of 37.5 MW for both captive and commercial use, is the best bet at the present conditions. The stock is heading towards Rs.50 mark. One time its average price was Rs.40 and that too with less encouraging fundamentals, then now...Now with the improving fundamentals and with it getting a readymade customer to sell electricity woth more than 30 MW to Banagalore State Electricity Board alone, the stock should cross Rs.50 soon. The demand for its products are increading throughout India and the globle.

A leading producer of Chlor-Alkali products, Sree Rayalaseema Alkalies and Allied Chemicals Ltd. is the flagship company of the reputed TVG Group. The company also manufactures Castor Derivatives and Fatty Acids. It has the unique distinction of being the pioneer of the Bipolar Membrane Cell Technology from Denora, Spa, Italy, in India. The company uses only state-of-the-art equipment and up-to-the minute technologies including the Costruzioni Meccaniche Bernardini (CMB) technology from Italy for its fatty acids division. A captive power plant assures uninterrupted and cost-effective power supply to the manufacturing plant.

Consistent overseas demand for its products have made the company a recognised export house today. The ISO 9002, ISO 14001 and IS-2888 certifications talk for the company's obsession with quality. The international class quality of the company's produce and the intricate marketing network spanning continents have found for it an assured place in the export markets ever since its inception. Canada, China, Dubai, France, Georgia, Germany, Greece, Iran, Italy, Japan, Jordan, Kenya, Korea, Kuwait, Malaysia, Netherlands, Poland, Russia, Singapore, Spain, Sri Lanka, Saudi Arabia, Thailand, USA, UK and a host of other countries prefer Sree Rayalaseema Alkalies and Allied Chemicals Ltd. over other players in the field. The soaps division exports its products to Sri Lanka, Malaysia, Kuwait, Sharjah, Bahrain, Dubai and other countries in the Gulf. The most encouraing fact is that its products are used across the sector,starting from Paper Industry to FMCG, besides being an active power producer. The companies in the power production space enjoy high P/Es like CESE,VBC Ferro Alloys etc. If we consider this case alone, its target should be Rs.70--Rs.80, in one year time frame. Grab the stock before it hits the circuits:

Moving away from the trend of mayhem in the markets, some select stocks, however, rose : Venky’s (India) (up 16% to Rs 175.25), Timex Watches (up 10% to Rs 29.70), Triveni Engineering (up 9.7% to Rs 57.15), Assam Company (up 6.5% to Rs 17.80), JK Tyres (up 5% to Rs 147.95), Ballarpur Industries (up 7% to Rs 131.65), and Alok Industries (up 5.5% to Rs 67.65).

However continuing with the trend Tele Data Informatics (down 10.8% to Rs 61.45), NIIT Technologies (down 9.7% to Rs 491.10), Wire & Wireless India (down 8.2% to Rs 57.50), Emkay Share & Stock Brokers (down 9.5% to Rs 99), KS Oils (down 8.9% to Rs 52.70), Energy Development Corporation (down 7.9% to Rs 58.20) alll closed with losses. Turnover surged on BSE to Rs 6,593 crore compared to Thursday’s Rs 5,758 crore The key event next week is the review of the monetary policy by RBI on Tuesday, 31 July 2007. RBI is likely to keep rates steady. However, it remains to be seen whether the central bank will raise CRR to suck out excess liquidity in the banking system. Data released today, 27 July 2007, showed India's wholesale price index rose 4.41% in the 12 months to 14 July 2007, higher than the previous week's 4.27% due to increase in food prices Meanwhile, a development that could increase domestic liquidity is the approval given by the Cabinet Committee on Economic Affairs on Thursday, 26 July 2007, to public sector companies enjoying Navratna and Miniratna status to invest up 30% of their surplus funds in equity mutual funds. The total surplus of central PSUs in 2005-06 was estimated at about Rs 2,39,500 crore, according to public enterprises survey. This means that about Rs 70,000 crore may flow to equity mutual funds. However, investments would be allowed only in public sector mutual funds.

Note: The introductory offer for the Premium(Paid) Membership, expires on or before 15th August, 2007. After that there will be a serious price revision of the package. To know the details of the Premium Membership please mail me at suman2005s@rediffmail.com.