Market Mantra SUZLON ENERGY is planning to raise $300 mln-$500 mln through an overseas bond issue to repay debt. The stock is one way up today............Cheers!! Today it touched Rs.23.15. Now buy State Bank of India Ltd at Rs.2142-2155, T--Rs.2180-2200 SL-Rs.2134 Market continued to trade within a range yesterday. Nifty made an intraday low of 5196 and a high of 5216 in Saturday’s special trading session. However, the undertone was positive and Nifty closed at the high of the day with a net gain of 19 odd points. Market is moving extremely range bound within a small range of 75 points between 5160-5225 since last five trading sessions. It appears that the market waiting for a trigger. In such a scenario, it may continue to be volatile and unpredictable within this range unless breaks either side. However, till the mid-afternoon the Nifty is trading with a positive bias today and is trying hard to break the stiff resistance at 5270---5295 range. I think with virtually no marked ...
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Prajay Engineers Syndicate Ltd: Ready to Blast off Prajay Engineers Syndicate Ltd which hit the buyer freeze last week, should start hitting some more buyer freezes. The company has huge pieces of land in Hyderabad and even in Vizag. The total land valuation would not be less than Rs.500 Cr as against this the market cap is only Rs.47.10 Cr. Now what about the business of the company? It is coming almost free at the current price of around Rs.6.76. The company would start working on an IT park from the 1st week of August, 2012 according to an unconfirmed source. The repo rate cut has already, improved the sentiments of Real Estate Counters. Its 3-star hotel would be money spinner in the coming days. Prajay is one of the largest real estate developers in Hyderabad, offering differentiated real estate and hospitality products. The company has made significant capital gains on the back of its well located land bank. Prajay Engineers Syndicate Ltd has strong project pipeline.
WINNING STROKES: THINK DIFFERENT Hindalco Industries Ltd recommended around Rs.118--119, moved to Rs.120.20 before closing Rs.119.80. The prospects of aluminum sector looks bright in the coming years. Why? This portion is only for the Paid Service Members. Sanguine Media Services Ltd hit another buyer freeze on the opening trade. I think some of the things which I heard from unconfirmed sources, seems to be correct. The company is talking lot of measures and is set to change a bit of the business model. Jai Balaji Industries Ltd, closed in the Green today. Any turnaround in the steel cycle will be positive for the company. Also, note that it is also a power producer---this much for today, the rest of the details can be disclosed at the end of next week, as I need to confirm some of the information, I received from my close sources. Of course, Paid Members will get any further information much earlier. At last Suzlon Energy Ltd moved to Rs.21.80, after it touched...
Downside in Steel Stocks Already Priced In ~~By Elliott Gue An improvement in the outlook for global growth has helped drive a modest uptick in global steel prices and a similarly modest rally in the prices of global steel producing stocks. But to truly understand the dynamics now driving the stock prices of steelmakers, investors must first understand the dynamics of making steel. Steel isn’t a metal but an alloy that’s composed primarily of iron mixed with one or more additional elements that act as hardening agents, making steel far stronger than raw iron. While the earliest steel artifacts are more than 4,000 years old, ancient production methods were inefficient and produced generally lower grades of steel than are possible today. Steel also was extremely expensive to manufacture and used only in applications where no cheaper alternative existed, such as in the production of swords and cutting tools. However, a series of technological advancements starting in the mid-19th cent...
Global apparent steel consumption to rise by 3.6% in 2012, worldsteel says Global apparent steel consumption is due to increase by 3.6% in 2012, as signs of stability start to emerge and recovery is expected to resume in the second half of the year, the World Steel Assn (worldsteel) said on Friday April 27. Steel use is likely to reach 1.42 billion tonnes in 2012, up from 1.37 billion tonnes a year earlier, worldsteel said in its short-range outlook. This is supported by growth of 4% in China to 648.8 million tonnes of apparent consumption, a rise of 6.9% in India to 72.5 million tonnes and 5.7% growth in the USA. Central and South American consumption is set to grow by 6.8% in 2012 to 49.1 million tonnes, a “historical high,” according to worldsteel, with Brazil returning to positive growth of more than 5% in 2012.
Suzlon charts out debt repayment plan Suzlon is also in talks with banks and financial institutions for debt consolidation and refinancing its existing debt ~~Deepti Chaudhary Mumbai, Sun, Mar 4 2012: Wind power firm Suzlon Energy Ltd, which needs to repay Rs. 3,000 crore debt between June and October, is hopeful of meeting its obligations by selling non-core assets, comprising wind farms and land; increasing order inflow; and recovering dues from a customer. Analysts, however, are not sure whether Suzlon will be able to generate enough cash and they expect the company to seek additional sources of funding, including selling a stake in its wholly owned subsidiary REpower Systems SE. The first tranche of Suzlon’s foreign currency convertible bonds (FCCBs) are due for redemption in June. “Given the company’s improving performance, impressive order inflow, potential collection of funds from a specific customer, and the progress we are making with the sale of non-core assets, ...
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Jai Balaji Industries Ltd: Banking on the Coke Oven Plant & Mines I am going to increase the price of my Paid Packages from 1st May, 2012. Also, if anyone is joining my brokerage house then he would get 2 years subscription free of charge and then discounts too in future subscriptions. If one is going for Profit Sharing Arrangement with my brokerage house, then the Paid Subscription is free till the investors continues with my firm. The brokerage and other things will be at par with ICICI Securities. The Company has high hopes on 0.35 million tons Coke Oven Plant along with waste heat recovery boiler of 80 TPH at its unit at Durgapur, West Bengal. The Company has already envisaged to set up 5 million tonne integrated Steel Plant, 3 million tonne Cement Plant and 1,215 MW Power Plant in Raghunathpur, in the District of Purulia in West Bengal and the Company has received adequate financial assistance from various quarters for the 1st phase. Recently, there...
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HINDALCO INDUSTRIES: LOOKING EXPLOSIVE ON THE CHART Hindalco Industries Ltd, one of whose plants is expected to go on steam in this quarter, is looking explosive on the charts and could outperform both the Sensex and Nifty in the coming days. The stock has been beaten down too much in the last few days, and now a short covering is expected to take it past Rs.122-123 in the coming days. My bullishness is based on both the Chartical and Fundamental Factors. Some of the fundamental factors which could affect positively are: (i) Base metals finished sharply higher on Thursday, as the lingering after-effects of Chairman Bernanke’s comments continued to pressure the dollar, forcing it to slide to $1.3263 against the euro – a three-week low. (ii) "Growing deregulation will lead to an explosion of interest in global commodity markets from small and medium-sized companies in China and will facilitate western companies’ access to liquidity from the country that is the worl...
Kaiser Aluminum 1st-qtr beats Street estimates Thursday, Apr 26, 2012 Kaiser Aluminum Corp's first-quarter results beat analysts' expectations, driven by higher volume and improved pricing. January-March profit rose to $27 million, or $1.38 per share, from $11 million, or 57 cents per share, a year ago. Excluding items, the company earned $1.09 cents per share. Net sales rose 34 percent to $365 million. Analysts had expected the company to earn 75 cents per share, on revenue of $352.9 million, according to Thomson Reuters I/B/E/S. Shares of the Foothill Ranch, California-based company, which has a market value of $922.4 million, closed at $49.20 on Wednesday on the Nasdaq. Courtesy : Worldal.com
Government may re-introduce sops for wind farms Offshore Wind Power Installations MUMBAI: The renewable energy ministry is planning to re-introduce incentives for the wind energy sector to allay fears that capacity addition could fall after the sops were withdrawn from April 1. The government rolled back two key incentives for the sector this year: accelerated depreciation and generation-based incentive. Industry players say the withdrawal of these sops will keep power producers at bay and could reduce annual capacity addition to less than 1,000 mw in 2012-13, against the target of 3,000 mw. "We have requested the finance ministry again to reconsider introducing the incentives for the current financial year. They see the merit in our request and we have comfort that we should be able to reinstate it," a senior ministry official said. Sources said there was consensus within the ministry for extension of the two incentives ahead of the Union Budget, but the government...
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Suzlon Ltd: Might have bottomed out today Suzlon Energy Ltd might have bottomed out today at Rs.21.85--22.10 ranges. The next target seems to be Rs.26.5--27.10, considering the chart pattern. However, on its way up the scrip might find some resistance at around Rs.23.70-24.40 ranges. Also, it seems at around Rs.26.60--27.10, the first phase of the rally would be complete, after which a fresh cycle might start taking the scrip a little higher, may be to around Rs.29.30--31. The 10 DEMA is placed at Rs.23.31 while 10 DSMA is placed at Rs.23.41. I have already said that according to my sources, the company (Suzlon Energy Ltd) would do much better in FY13 and FY14, with an order back log of around (massive), Rs.39, 000 Cr. Moreover, the company is also looking for setting up offshore wind mills for the steady generation of power, and which could be ready within the next couple of years. The company has also the sought government's attention in this direction. Moreov...
Chinese manufacturing picks up in April: HSBC Buy Reliance Industries Ltd at Rs.736-739, T--Rs.775, SL-Rs.720. China's manufacturing activity gained momentum in April but remains below the boom-or-bust level, according to a reading of the manufacturing purchasing manager's index (PMI) released by HSBC on Monday. China "flash" manufacturing PMI — an early estimate of the measure, which estimates the manufacturing sector's overall health — hit a two-month high of 49.1 in April, up slightly from 48.3 in March, according to HSBC. A reading above 50 suggests expansion, while a reading below 50 indicates contraction. "Since the April flash PMI ticked higher, this suggests that previous easing measures have started to work and should therefore ease concerns of a sharp growth slowdown," said Qu Hongbin, chief economist at HSBC China and co-head of Asian Economic Research at HSBC. "In an historical context, the pace of both output and demand growth h...
Moody's confirms China Aa3 rating, outlook positive This gives a positive outlook for the commodities, especially Copper, Iron Ore, Crude Oil, Steel and Aluminum China's sovereign rating outlook remains positive, supported by favourable medium-term growth prospects and strong government debt dynamics, Moody's Investors Service said in a report on Thursday. The ratings agency made no change to its Aa3 foreign and local currency bond ratings in the report, but said Beijing must retain tight control over local government finances and make reforms in the financial system to ensure rapid and stable economic growth for the rest of the decade. "Rapid economic growth, coupled with low deficits and debt of the central government, have provided ample fiscal headroom to manage contingent risks in local government finances, or in the banking system," Moody's said in a statement accompanying the report. Moody's said it expects China's real economic growth ra...
Moody's slams Gandhi family for failing India New Delhi : The Congress' first family has come under criticism by Moody's Analytics for failing to restart the legislative process for reforms, accusing it of blowing their chance in the recent state elections including UP. "The real power behind the government, the Gandhi family, blew their chance to restart the legislative process at the recent state elections in which family scion Rahul Gandhi invested countless hours and money touring the rural backwaters of Uttar Pradesh," Moody's Analytics Senior Economist Glenn Levine said. He noted that the Congress party was drubbed by Mulayam Yadav's Samajwadi Party and "Gandhi has barely been heard from since then". The remarks preceded its contentions that the UPA government, weighed down by corruption and funding scandals, has passed no notable bills. "The government has lost all momentum and progress is unlikely on existing ...
SEBI eyes greater fund flows from abroad Easier norms on anvil for qualified foreign investors Samie Modak / Mumbai Apr 26, 2012 To improve the framework for qualified foreign investors (QFIs) and facilitate broad-based participation, the Securities and Exchange Board of India (Sebi) is working on large-scale changes to the framework notified earlier this year. It has convened an informal forum with key market participants, such as custodians, qualified depository participants (QDPs), brokers and tax consultants. Representations on an ongoing basis have been made to Sebi and the finance ministry by various entities to iron out issues. Market players have also sought clarity on certain issues related to taxation and qualification of investors. The market regulator, in January, had issued guidelines for direct entry of QFIs. However, flows have not started to come through this route, which experts say is due to lack of clarity on the subject. According to sources, QD...
Don't Panic: Reforms coming: the discredited FM, Pranab Mukherjee Finance minister Pranab Mukherjee said there was "no need for panic" after rating agency Standard & Poor's downgraded the country's outlook from stable to negative on Wednesday. India is likely to pass some financial reforms in the current session of Parliament, which started on Monday, he added. "There is no need for panic," Mukherjee told reporters. "The situation may be difficult, but we will be surely able to overcome (it)."
The PM and his former boss, the current FM should be sacked after S&P downgrade & poor economic management of Indian Economy However, I feel that S&P has only put their stamp on to what is obvious and the markets should not fall too much further from here (SENSEX is now down 150 points), as it has already been discounted. Probably the markets have bottomed out today and in future the markets could move up. I think 5180 (Last time, it pulled back from the level of 5180 showing buying interest at lower level) in case of Nifty (Spot) would hold and therefore, traders (this was the call to the Premium/Paid Members some minutes back) can buy MINI_Nifty above 5170, T-5230, SL--5150 (the corresponding SPOT price is 5180).....!! The BSE Sensex and NSE Nifty plunged around 1% each after the overseas rating agency S&P cut India outlook to negative, citing investment & economic growth slowed and CAD widened. Rating agency expects Indian government to face headwind in implement...
Norms eased for setting up power units in SEZs Arun S. & Richa Mishra Please Click on the Photo to Enlarge In a boost to power firms with plans to set up units in Special Economic Zones (SEZ), the Government has exempted them from the positive net foreign exchange (NFE) obligation applicable to regular units in such enclaves. The decision will help power companies such as Torrent Energy, Welspun Energy and AES. Most power firms have been reluctant to set up plants in SEZs due to feasibility concerns arising from the positive NFE norm. The positive net NFE norm stipulates that foreign exchange earned from exports should exceed foreign exchange spent on imports. According to the new guidelines, power plants can be set up by developers and co-developers in the processing area (where export units are present) as well as in the non-processing area with social infrastructure, including houses, schools and hospitals. Power plants in the processing area can also avail themselv...
Sun shines over renewable energy N. Ramakrishnan If you remember, Kohinoor Broadcasting Corporation Ltd has now ventured into Solar Power, the 1st phase of which will be ready by the end of FY13. Wind energy continues to be the single largest component of the RE portfolio, accounting for nearly 70 per cent of all Green power. The Indian renewable energy industry has never had it so good. Wind power installations in 2011-12 were the highest in a single financial year, at 3,163 MW, taking the total installed capacity to 17,320 MW. The Centre has announced an ambitious national solar mission under which 20,000 MW of solar power capacity will be added in the next decade. The first phase of the solar mission envisages 1,000 MW of capacity, both solar thermal and solar photovoltaic. The installed renewable energy capacity in the country at the end of March 2012 stood at 24,500 MW, about 12 per cent of the total installed power capacity of 2,00,287 MW. Over the years, the share of Green ...
Suzlon Energy, & Regen Powertech lead the market M. Ramesh In 2011-12, which saw the addition of 3,163.43 MW of wind power capacity to the country, two home-grown companies — Suzlon and Regen Powertech — came among the top five suppliers, occupying No.1 and No.3 slots, according to information available with Business Line. Regen Powertech's performance is noteworthy because it is just a four-year-old company. Regen produces gearless, permanent magnet-based wind turbines from its plant near Chennai, with technology from Vensys of Germany. The addition of the 3,163.43-MW came across seven States, with Tamil Nadu retaining its top position. Gujarat followed with 790 MW (24.98 per cent), Rajasthan 545.65 MW (17.25 per cent), Maharashtra 408 MW (12.90 per cent), Karnataka 178.65 MW (5.65 per cent), Madhya Pradesh 100.40 MW (3.17 per cent) and Andhra Pradesh 54 MW (1.71 per cent). Courtesy : The Hindu Business Line
FIIs raise Sensex exposure, buy shares worth $5 bn Enamoured by the large blue-chip stocks of Indian market, the foreign institutional investors (FIIs) have raised their exposure to five out of every six Sensex companies with purchase of shares worth an estimated $5 billion so far in 2012. Even as the concerns are being raised about some changes in India's policy concerning overseas investors, the market data suggests a rather bullish stance adopted by the FIIs in their stock market dealings this year. Most of the foreign entities sell or purchase Indian stocks through FII route and the data shows that only five out of 30 Sensex companies have witnessed a decline in their FII holding since January 2012— that too of a modest level. On the other hand, the FII holding has increased in 24 Sensex companies during this period, while comparable data is not available for one entity, HDFC Bank. Together, the FIIs are estimated to have purchased shares worth about Rs 27,000 crore (over $...
Wall Street edges up early NEW YORK--Wall Street edged higher at the open on Tuesday although continued concerns about Europe's debt crisis capped gains as earnings from AT&T and 3M boosted the Dow. The Dutch state successfully completed a bond auction a day after the government collapsed in a crisis over budget cuts, but investors demanded a slightly higher risk premium as euro zone yields have edged higher. "Today is all about earnings and Europe," said Paul Nolte, managing director at Dearborn Partners in Chicago. Nolte said investors would look especially to Apple Inc's (AAPL.O) results after the market close. Earnings from the world's most valuable company could be a stabilizing factor for the Nasdaq and will be dissected after a share swoon raised concerns a gravity-defying rally was over. Apple, down over 10 percent from its closing peak this year, fell 1.2 percent to $564.38. AT&T Inc's (T.N) profit rose, driven by a rise in wireless margin...
WINNING STROKES: THINK DIFFERENT Suzlon Energy Ltd as expected moved up today to Rs.23.20, though cooling down a bit during the dying minutes. I had yesterday, tried to draw the attention of the authorities through this blog, so that they inquire for a probable price rigging in the counter, through synchronized selling from various terminal points; following a motivated research report by a brokerage house. My highly placed sources refused to comment on that brokerage report. So, is it a work of fiction or created for the purpose of manipulation of the share price of Suzlon Energy Ltd? I think the surveillance authorities should be more pro-active in stopping such price rigging of counters, post presentation of brokerage reports; to save the small investors, from the clutches of predators. The stock is expected to move towards Rs.29-30, in the coming days, as the company's fundamentals are improving. A company which has an order position of around Rs.39, 000 crore cannot trade at t...
Market Mantra Yesterday, buy call on Nifty proves to be correct as the Nifty reverses trends and threatens to break 5270--5300 mark once again. Those who have bought Nifty yesterday on my recommendations, congratulations to them.Today is "Akshaya Trithiya", an auspicious day to buy GOLD. On this occasion the Indian Stock Exchanges have waived off the transaction charges for all trades in GOLD ETFs. One can purchase GOLDBEES, KOTAKGOLD, RELGOLD etc... in secure Demat format. Also, On the auspicious occasion of "Akshaya Trithiya", Extended Trading in GOLD ETFs would be taking place between 4.30 PM & 8.00 PM today. Happy Akshyaya Trithiya" to all of you and your families/friends. Heavy buying is seen in Suzlon Energy Ltd today as the scrip is moving up with good volumes. It is now trading at Rs.22.65, with a positive bias. The company which has an order book of around Rs.39, 000 crore cannot trade at such dismal price. Moreover, this huge back-log of orders a...
China’s banks posted their fastest profit growth in at least four years [The Indian iron and steel plants having capacity of 0.5 mln tn per year and above are likely to get 'green' environmental rating, post a survey by the non-government organization, Centre for Science and Environment. The survey included plants of STEEL AUTHORITY of INDIA, JSW STEEL, TATA STEEL, MONNET ISPAT and VISA STEEL. Yesterday, SAIL was recommended by a well known brokerage house. However, I am much bullish on the Aluminium sector due to expected increased use of the metal in the coming days] China’s banks posted their fastest profit growth in at least four years for 2011 as income from loans and fee-based financial services outpaced an increase in defaults triggered by a slowing economy. Financial institutions in China including policy banks, commercial lenders, rural credit cooperatives and foreign banks, earned a combined net income of 1.25 trillion yuan ($198 billion) last year, a gain of 39 ...
SBI slashes retail deposit rate, may not cut lending rates soon Now the money which ought to have gone to Bank Fixed Deposits would find its way into India Capital Market. Great News for the BULLS The State Bank of India (SBI) has cut retail deposit rates by 25-100 basis points, following the changed policy stance of the Reserve Bank of India. The lender may not cut lending rates in the near term as costs of deposits continue to be high, Chairman Pratip Chaudhuri said after the bank lowered its deposit rates. Scores of private and state-owned banks, saddled with high-cost long-term deposits, narrow profit margins and the threat from a rising volume of bad debts, are hard-pressed to follow the Reserve Bank of India with a cut in lending rates.