SumanSpeaks: The Information Super Highway

India world’s 4th largest steel maker at 62.41 MT in Jan-Sept October 26, 2014: With 62.41 million tonnes output, India remains the world’s fourth largest steel producer in the first nine months of the current year, preceded by China, Japan and the US. World Steel Association (WSA) data showed India’s steel production grew by 1.8 per cent, the second highest among the top four steel producing nations, during the January-September period from 61.27 MT in the same period last year. India has been the world’s fourth largest steel maker for the last four years. The order is likely to remain unchanged in current year too, an industry expert said. During the first nine months, China produced 618 MT steel which is a little more than half of world’s total production at 1,231 MT. China logged 2.3 per cent growth during the period. But its steel production remained static in September, as per data revealed by WSA, at 67.5 MT when compared with the same month last year. ...

Shake-out of ferrochrome industry overdue [ Editor :  The demand for ferro alloys is driven by steel production, which in turn depends on growth from the infrastructure, housing, automobile and consumer durable industries. The ferro-alloy industry is at cross-roads now, with the new NDA government coming in New Delhi. I have already recommended Rohit Ferro Tech Ltd  (Rs.9.63) pivoted on the source based information that the company's  Captive Power Plant of 67.5 MW and 33 MVA Furnace are about to start operation within a very short time] October 27, 2014:  India's ferroalloys producers have built capacity of 5.25 million tonnes (mt), including 3.2 mt of manganese alloys and 1.75 mt of chrome alloys, anticipating much faster growth in domestic production of carbon, alloys and stainless steel than is actually the case. As a result, every segment of the ferroalloys sector has considerable idle capacity. The sector's attempt to beat overcapacity blues through exp...

Steel exports soar as domestic demand weakens Photo : The Telgraph 30 October, 2014: Steel exports soared 39.3 percent year-on-year to 65.34 million metric tons in the first nine months of 2014 as domestic demand remained soft and prices fell, the China Iron and Steel Association announced on Wednesday. In comparison, China imported 11 million tons of steel, up 5 percent year-on-year. "The Chinese government has never encouraged domestic steel companies to export since the industry is a large energy consumer and its priority is to meet domestic demand," said Zhang Changfu, vice-chairman of the association. China exported 8.52 million tons of steel products in September, up 9.8 percent month-on-month. For the first three quarters, the average steel export price was $783 a ton, down $74 a ton compared with the same period of last year. Exports are mostly going to Asian countries, which account for about 70 percent of the total. China also exports hig...

MARKET MANTRA Today my recommended Suzlon Energy Ltd at around Rs.11.99-12.10 touched Rs.13.60, intra-day. However, profit booking was suggested in the counter at around Rs.13.25-13.20, for the Paid Group Members and to those who trade through my brokerage terminal.  Buy Rohit Ferro Tech Ltd at the CMP of Rs.9.65.9.70, for a target of Rs.12-13, in the short term. The short term traders can book some profits in Suzlon Energy Ltd at Rs.13.25 and enter Rohit Ferro.  Rohit Ferro-Tech Limited was incorporated on 7th April, 2000 and is amongst India’s largest Ferro-Chrome manufacturing Company. The Company is engaged in manufacturing of chromium and manganese-based ferro alloys, such as High Carbon Ferro Chrome (H.C.FeCr), Silico Manganese (SiMn) and Ferro Manganese (FeMn) through Submerged Arc Furnace (SAF) route. The Company has three manufacturing facilities located at Bishnupur in West Bengal, Jajpur in Orissa and Haldia in West Bengal. The Company has commenced its com...

WINNING STROKES: THINK DIFFERENT As expected, Sulon Energy Ltd hit the buyer freeze today at around Rs.12.70. The stock was yesterday recommended to the PAID GROUPS at around Rs.11.99-12.10. The  company has a massive order book of around Rs.43, 000 Cr and now less problem, for meeting its working capital needs. Meanwhile, the Hindu, on 27 October, 2014 writes: " The restoration of benefits such as accelerated depreciation (AD) and generation-based incentive (GBI) is expected to invigorate the domestic wind power sector.   Crisil Research estimates that 10,000 MW of capacity will be added during 2015-18, entailing investments of Rs.65,000 crore compared with 7,000 MW over the previous three years.GBI and AD (which expired in March, 2012) enable a quantum improvement in the economics of power projects, so it is understandable why capacity additions will go up with their restoration. Crisil Research estimates suggest that projects availing of AD (80 per cent depreciation a...

India’s Suzlon Energy Secures Orders For Wind Turbines Worth $200 Million [ Editor : There were earlier media reports that Indian government is planing to rapidly accelerate wind energy generation, adding an ambitious 10,000 MW every year, or five times the total new capacity that came up in the last fiscal. Wind energy, which had been overshadowed by solar projects in recent years, got a big boost in the current fiscal, as the government of India has restored key tax incentives that had helped India emerge as one of the top countries in the world in generating electricity from wind. The government feels that tax incentives coupled with conducive environment will rapidly accelerate wind energy. All these augurs well for the shares of Suzlon Energy Ltd (Rs.12.10)] October 27th, 2014:  The reintroduction of financial incentives for the Indian wind energy sector has led to a significant increase in the orders for wind turbines. India’s leading wind turbine manufacturers,...

Fresh surge of wind power Photo : The Economic Times October 27, 2014: The restoration of benefits such as accelerated depreciation (AD) and generation-based incentive (GBI) is expected to invigorate the domestic wind power sector. Crisil Research estimates that 10,000 MW of capacity will be added during 2015-18, entailing investments of Rs.65,000 crore compared with 7,000 MW over the previous three years. GBI and AD (which expired in March, 2012) enable a quantum improvement in the economics of power projects, so it is understandable why capacity additions will go up with their restoration. Crisil Research estimates suggest that projects availing of AD (80 per cent depreciation allowed in the first year of operations) are economically viable at only Rs.3.80 a unit. In comparison, States such as Maharashtra, Rajasthan, Andhra Pradesh and Madhya Pradesh offer preferential tariffs ranging from Rs.3.90 to Rs.5.90 a unit, which make wind power attractive for developers in the...

WINNING STROKES: THINK DIFFERENT The bulls took a breather today amid the news of the disclosure of names of the alleged BLACK MONEY HOLDERS in the Honourable Supreme Court of India. Also, the uncertainity regarding the formation of the goverenment in Maharashtra, took its toll on the markets. However, as long as the level of 8000-7980 is held the bulls can still hope for a continuation of this rally. The focus is now expected to shift towards the small and mid cap counters as the broader market is likely to trade in a range till the F&O expiry on this Thursday. The traders are therefore, suggested to buy the scrips which has a story to tell and hold for few days to get some good returns,  as NOVEMBER-EFFECT draws closer.  Glodyne Technoserve Ltd today hit another buyer freeze in the opening trade at Rs.4.11. The company came out with a slightly better Q1FY15 results, speaking sequentially.  Today, the shares of Suzlon Energy Ltd were recomme...

India could allow commercial coal mining by foreign companies Mr. Vikram Merchant, Manager India Representative office Rio Tinto Diamonds with Brand Ambassador Yaami Gautam at Nazraana Season Awards 2014 NEW DELHI, Oct 22  - India could allow commercial coal mining by foreign companies if they set up units in the country, opening the door for global giants like Rio Tinto to access the world's fifth-largest coal reserves, a source familiar with the matter said. Prime Minister Narendra Modi's decision to open commercial coal mining to private players is a key step towards bringing order to the country's chaotic power industry and ending the chronic blackouts that impede its economic rise. Nearly a quarter of a century after India embraced economic liberalisation, many businesses still rely on costly back-up generators for round-the-clock power and a third of its 1.2 billion people are still not connected to the grid. As of now, only Indian power, steel and...

PE investors bullish on organised jewellery chains [ Editor : Gitanjali Gems Ltd was already recommended around Rs.63, but those who are not holding the scrip can buy it at the CMP of Rs.58.15, for a target of Rs.71-72, in the short term. Recently, there were some media reports that, Imports of cut and polished diamonds trebled in August, 2014 on concerns on export markets. Traders are importing more for local sales if export demand doesn't match up. Meanwhile, the  Diamond ornaments has become costlier by at least five per cent this festive season, on Indian diamantaires’ decision to pass on the rise in prices of rough diamonds (‘roughs’ in trade parlance) to consumers.  Gold sales in India during the festivals of Diwali and Dhanteras celebrated this week rose by about a fifth, a senior official at the country's biggest gold trade group said on Friday ] On October 20, US private equity (PE) major Warburg Pincus announced its Rs 1,200-crore investment in Kerala-...

JAYPEE SPORTS INTERNATIONAL LIMITED (JSIL) Photo :  Land of Krishna Jaypee Sports International Limited (JSIL) was incorporated on 20th October, 2007. It was allotted around 1100 Ha. of land for development of Special Development Zone (SDZ) with sports as a core activity  by Yamuna Expressway Industrial Development  Authority (YEA). This area is inclusive of 100 Ha of land to be used for Abadi Development. Its core activities are Motor Race Track, suitable for Holding Formula One race and setting up a Cricket stadium of International Standard to accommodate above 1,00,000 spectators and others. The Motor Race Track known as Buddh International Circuit (BIC) was completed well in time and JSIL successfully hosted the three Indian Grand Prix held in October, 2011, October, 2012 & October, 2013. The success of the event was acknowledged by winning of many awards and accolades. JSIL is trying its best to generate revenue by placing Buddh International Circ...

Jaiprakash Associates Merger  [ Editor : Recently, there were media reports, that  Aditya Birla group firm Ultratech Cement is believed to be looking at possible acquisition of Jaypee Group's three cement plants in Madhya Pradesh in a deal that couldbe worth about Rs.5,500-6,000 crore. Meanwile, the Economic Times reported on 21st October, 2014, that  Eighty-eight infrastructure and industrial projects, involving investment of nearly Rs 3 lakh crore - which is more than the Centre's budgeted income tax collections for the current financial year - have become operational over the past few months.  Therefore, the share of Jaiprakash Associates Ltd, which is now trading at around Rs.30.10, is one of the best scrips to be bought, as of  now] New Delhi,  October 24, 2014: Jaiprakash Associates' proposed merger of subsidiary Jaypee Sports International Ltd with itself has got approved from National Stock Exchange (NSE). Jaypee Sports International L...

Winning Strokes: Think Different Photo : The Economic Times Yesterday, J P Power Ventures Ltd recommended around Rs.12.05--12.28, touched Rs.12.77 intra-day. The Indian government on 20th October, 2014, announced that it will auction 74 coal-mining licenses to private companies in the next three to four months after the Supreme Court last month canceled 214 coal licenses issued to private and public companies since 1993. The move came after the government freed diesel from price controls and increased natural-gas tariffs over the weekend to curb subsidies and cut the fiscal deficit. Moreover, the coal block auctions will reduce uncertainty regarding power generation companies that depend on the dry fuel--this augurs well for the shares of J P Power Ltd.  Tata Steel Ltd which was recommended around Rs.450, some days back, yesterday touched Rs.461.90 intra-day. The company is scheduled to come up with Q2FY15 results on November 1, 2014. My recommended Country Club (I) Ltd, ...

MARKET MANTRA Today's call : Buy J P Associates Ltd at the CMP of Rs.29.70, for a target of Rs.35. The company is looking at the possibilities to reduce its huge debts. It seems the scrip has formed a bottom of sorts around Rs.29.  A couple of days ago, a call was given on Tata Steel Ltd at Rs.450, today the scrip touched Rs.462.60, intra-day. The target for the scrip given to the Paid Members is Rs.480. Resurgere Mines and Minerals Ltd, hit another upper circuits on the opening trade. The  Resurgere Mines & Minerals Ltd (Rs.1.57), in 2011 decided to acquire an iron ore mine, at Satarda in Sindhudurg district of Maharashtra, having area of 96 acre. The Fe content in the ore body ranged from 54% to 60%. The estimated total reserve is 47.59 million tonne. But even after almost 3-yeas of UPA RULE under Dr.M M Singh and around 5 months of NDA Rule under Narendra Modi, the company is yet to get approval, for the same.  In the process, not only the promoters and i...

MARKET MANTRA Nifty's bounce back to 7900 again, after a brief correction is a sign of strength. The breakdown below 7800 proved to be short lived. The Nifty has currently broken its immediate resistance at 3925 and is now trading at 7934, which tells volumes of the commencement of a pre-Diwali rally. What should the traders do at this time? Join the PAID SERVICE to get regular updates on the markets.  My call on Jindal Saw Ltd yesterday touched its first target of Rs.82, as the scrip cross Rs.83, intra-day. The Paid Members were suggested to book profits yesterday.  Yesterday's strongly recommended call J P Power Ltd is doing well, as the scrip is up more than 2 percent intra-day and is  now trading at Rs.12.25. The scrip is expected to touch Rs.17-18, very soon and hence this is a must buy scrip for every investor. 

Mumbai CCTV project attracts two bids [ Editor : Who will get this lucrative project (worth Rs. 1,000 crore),  in Mumbai is a big question. What about Allied Digital Services Ltd ? Is it still in the loop or has withdrawn from the same? Allied Digital Services Ltd, is implementing a similar project (installation of CCTV Cameras) in Pune (Poona), Maharashtra. To get answers to such questions, you can either join the Paid Service or you can trade through my recommended brokerage house/s] Photo : DNA India MUMBAI, Sep 25, 2014: After three false starts, there are two new offers from technology majors to set up over 6,000 CCTV cameras across the city. "L&T and Trimax have submitted bids and their technical evaluation is done," a home department official said. "Once the report of the technical scrutiny committee arrives, the financial bid will be opened by the high-powered committee led by chief secretary Swadheen Kshatriya." IIT-Bombay professors ...

PM Narendra Modi Launches Major Labour Reform Schemes: Top 10 Developments [ Editor : Narendra Modi says,   "Shramev Jayate (labour triumphs) has the same power as Satyamev Jayate (truth triumphs) does for the development of our nation."Labour problems, "he said, must be seen through the eyes of the shramik (worker) not industrialists." So, are we talking of Narendra Modi suddenly becoming a COMMUNIST? Or he is totally confused, in this case too, like in many earlier instances? A person who is only interested in winning elections and getting votes by hook and crook, is bound to make this kind of one-sided comment. Meanwhile, FIIs have turned BEARISH on the Indian markets---today, i.e. on  16-Oct-2014, they were net sellers to the tune of Rs.1128.37 Cr. In fact the policies of Narendra Modi has been a total flop show, till now.  After a series of overseas tours that took him to Japan and the U.S., he was was seen working overtime to canvass for his party in the s...

Infrastructure bars India’s growth path [ Editor : Narendra Modi is an over-inflated balloon, waiting to burst at any time. If it was not for Rahul Gandhi (...someone said his speech comes in POGO Channel) and the RSS (or say in short, "Sangh Parivar"), demagogues like Narendra Modi, would have NEVER reached Delhi. India should have a new Prime Minister and a Finance Minister, as both of them are totally flop till now. However as long as sycophants and blind fans are there, he could be assured of victory in  elections]  Whenever Air India cancels its flight to Delhi from Kullu Manali in the foothills of the Himalayas – as it often does – it leaves passengers facing a 600km journey over monsoon-damaged but unrepaired roads, which takes 14 hours. There are many conspiracy theories as to why Air India cancels the flight so often – and why a successful air taxi service from Chandigarh, halfway between the two points, failed to get its licence renewed. Most o...