WINNING STROKES: THINK DIFFERENT:

Allied Digital Services Ltd hits another buyer freeze in the opening trade. The company has ventured in a new line of business, viz. cloud computing.  However, I feel that at this stage some profit booking should be done, as the market has become very unpredictable these days. 

My recommended Prakash Industries Ltd (please see report at: http://sumanspeaksplus.blogspot.com) moved to Rs.53.55 before cooling down a bit. The company has superb fundamentals and all those fuss about being investigated is ending up in a smoke-just talk with your sources if you do not believe in me. Media likes to make noise of very small  things to get the TRP and my research proves that it was simply a HOAX, created by a section of the media in collusion with some parties or competitors of the company. I am expecting the stock to sprint past Rs.100 within the next couple of months time frame. The company works in a multiple domain and hence has a steady revenue. “Indian Steel Industry Outlook to 2012” says that the, Indian crude steel production will grow at a CAGR of around 10% during 2010-2013. Moreover, with the government proactive incentive plans to boost economic growth by injecting funds in various industries, such as construction, infrastructure, automobile, and power will drive the steel industry in future. The report also reveals that, steel consumption in India is expected to grow significantly in coming years as per capita finished steel consumption is far less than its regional counterparts.

Tata Motors Ltd recommended on 5th September, 2011, at Rs.720, T--Rs.825, SL--Rs.690, reached Rs.792.40 today. Even in tiring times the company managed to eke out some good numbers. However, its EPS decreased due to expansion of the equity.

Surprisingly Country Club India Ltd inspite of having great fundamentals is not moving up. But I think ultimately it should move up, as it cannot trade at this price of around Rs.9-10 for too long. Meanwhile, today, Country Club India Ltd has informed BSE that the Register of Members & Share Transfer Books of the Company will remain closed from September 26, 2011 to September 30, 2011 (both days inclusive) for the purpose of Payment of Final Dividend & 20th Annual General Meeting (AGM) of the Company to be held on September 30, 2011. The stock is moving towards Rs.25-26 in the coming days. 

Shree Asthavinayak Cine Vision Ltd tanked to Rs.5.46, with a volume as high as 60.80 lakh shares, after profit booking was advised to the Paid Groups. However, the long term picture of the scrip is good. 

Resumption of buying by foreign funds this month, gains in world stocks and good monsoon rains helped Indian shares extend recent strong gains. The BSE Sensex jumped 100.54 points or 0.59%, up close to 180 points from the day's low and off about 45 points from the day's high. Intraday volatility was high. The market breadth was strong. Index heavyweight Reliance Industries (RIL) rose more than 2.5%, reversing initial losses, after the firm said it has set a global benchmark for effective and efficient project completion and capital cost competitiveness in KG D6 gas production block under the most trying circumstances. Another index heavyweight ICICI Bank rose 2.5%.
The market has staged a strong rebound after a steep setback in August 2011. The Sensex has jumped 1,316.71 points or 8.3% in seven trading session from 18-1/2-month closing low of 15,848.83 on 26 August 2011.
Foreign institutional investors (FIIs) bought shares worth net Rs 374.20 crore on Wednesday, 7 September 2011, compared with an inflow of Rs 568.80 crore on Tuesday, 6 September 2011, the latest data released by the Securities & Exchange Board of India (Sebi) showed. FII inflow totaled Rs 1985.53 crore in the first few days this month, till 7 September 2011, as per data from the stock exchanges.
Good rains this year will help boost farm output and rural incomes. Higher rural consumption may ease concerns of a likely slowdown in corporate earnings caused by higher interest rates and higher input costs. Good rains may also help bring food inflation down. Data on second quarter September 2011 corporate advance tax payment due on 15 September 2011 may provide cues on Q2 September 2011 results.
Coming back to today's trade, capital goods stocks edged higher. Software stocks gained on positive economic data in US and on a weak rupee. Defensive FMCG stocks edged lower in a firm market.
Intraday volatility was high. The market slipped into the red soon after a positive opening. The market soon regained positive zone. The market pared gains shortly thereafter. Volatility continued as key benchmark indices recovered after hitting fresh intraday lows in morning trade. The barometer index BSE Sensex regained the psychological 17,000 mark after falling below that mark for a short while. The market retained positive zone in mid-morning trade.
Key benchmark indices trimmed loses after reversing gains in early afternoon trade as volatility continued. Volatility ruled the roost as key benchmark indices once again slipped into the red after regaining positive for a brief period in afternoon trade. The market surged to fresh intraday high in mid-afternoon trade as European shares reversed initial losses.
The BSE Sensex was up 100.54 points or 0.59% to 17,165.54, its highest closing level since 5 August 2011. The index rose 144.66 points at the day's high of 17,209.66 in mid-afternoon trade. The index fell 77.63 points at the day's low of 16,987.37 in early trade.
The S&P CNX Nifty was 28.60 points or 0.56% to 5,153.25, its highest closing level since 10 August 2011. The Nifty hit a high of 5,169.25 in intraday trade. The Nifty hit a low of 5,098.25 in intraday trade.
The BSE Mid-Cap index rose 0.26% and underperformed the Sensex. The BSE Small-Cap index gained 0.72%. and outperformed the Sensex.
BSE clocked turnover of Rs 2361 crore, lower than Rs 2757.35 crore on Wednesday, 7 September 2011.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,740 shares rose and 1,110 shares declined. A total of 101 shares remained unchanged.
Among the 30-share Sensex pack, 15 fell while rest of them rose.
Index heavyweight Reliance Industries (RIL) gained 2.62% to Rs 853.50, off the day's low of Rs 814, after the firm said it has set a global benchmark for effective and efficient project completion and capital cost competitiveness in KG D6 gas production block under the most trying circumstances. RIL issued a statement after the Comptroller and Auditor General of India or CAG said in its final report submitted to the parliament today, 8 September 2011, that RIL initially estimated capital expenditure of D-1 and D-3 gas discovery at $2.4 billion, which it later revised to $8.8 billion.
The report said that RIL started implementing the revised capex plans even before they were approved by the government. The report also found that RIL didn't relinquish some least-priority areas in the KG D6 block, which the government could have given to other companies for further exploration.
RIL said it is unable to comment on the final CAG report as the company has not seen the contents of the final report. RIL said it had already provided its detailed comments along with the views of international experts on the draft CAG report to Ministry of Petroleum and Natural Gas (MOPNG), Directorate General of Hydrocarbons (DGH) and CAG. RIL said it hopes that its detailed responses and the views of industry experts have been duly considered in finalising the audit report by CAG.
RIL said it reiterates that, as a contractor, it remains committed to complying with the PSC (Production Sharing Contract) provisions and procedures, including adopting Good International Petroleum Industry Practices (GIPIP) in its operations. Since many of the comments in the draft report had referred to issues that were technical in nature, the firm had offered to CAG a complete and thorough interaction with subject matter specialists, RIL said. RIL also said it remains open to such interaction at all times. RIL also said that it will continue to co-operate with the Government of India for audit as per the provisions of PSC.
Europe's second largest oil company BP Plc, last month, completed the acquisition of a 30% stake in 21 oil and gas blocks that RIL operates in India. BP will pay RIL an aggregate consideration of $7.2 billion subject to completion adjustments for the interests to be acquired in the 21 production sharing contracts, the two companies said in a joint statement late last month. Further performance payments of up to $1.8 billion could be paid based on exploration success that results in development of commercial discoveries, the two companies said.
Index heavyweight ICICI Bank rose 2.51% to Rs 919.30. The stock came off the day's low of Rs 883.85.
Pharma stocks edged higher. Biocon, Lupin, Cipla, Dr Reddy's Laboratories rose by between 0.29% to 2.94%. Ranbaxy Laboratories jumped 4.37% on reports the company will release a generic version of the blockbuster cholesterol-lowering drug Lipitor in the US at the end of November 2011 as planned.
Interest rate sensitive realty stocks edged higher on bargain hunting after heavy losses over the past few months triggered by worries that higher interest rates will dent demand for residential and commercial property. Purchases of both residential and commercial property are largely driven by finance. DLF, HDIL, and Unitech gained by between 0.42% to 1.94%.
Consumer durables stocks gained. Blue Star, Videocon Industries, Rajesh Exports, Gitanjali Gems and Titan Industries gained by between 0.08% to 2.93%.
Defensive FMCG stocks edged lower in a firm market. Nestle India, Marico, ITC and United Spirits dropped by between 0.6% to 1.59%.
Capital goods stocks edged higher. Thermax, Larsen & Toubro, Praj Industries, ABB, Siemens and Punj Lloyd rose by between 0.81% to 3.4%.
ONGC fell 0.55%. The company has filed prospectus for about Rs 11000-crore follow-on public offer with the Securities and Exchange Board of India. The government will sell a 5% stake in ONGC through the offer as a part of its plan to raise Rs 40000 crore through sale of shares in state-run companies in the current financial year through March to fund social-sector programs.
Software stocks gained on positive economic data in US and on a weak rupee. US is the biggest market for the Indian IT firms. India's third largest software services exporter Wipro jumped 2.58%.
India's second largest software services exporter Infosys gained 2.07%. The chief executive of Infosys said last month that the economic worries in the US and Europe were delaying decisions and clients may not spend all of their information-technology budgets for this year.
India's largest software services exporter TCS rose 0.49%. TCS early this week said that Westpac has selected TCS' BaNCS Insurance to assist the financial institution to upgrade and transform the life insurance software platform to drive growth in New Zealand.
A weak rupee also supported IT stocks. The rupee today, 8 September 2011, fell to a near one-year low against the dollar dragged by dollar demand from domestic oil companies and weak Asian currencies. The partially convertible rupee ended at 46.19/20 to a dollar, 0.04% lower than Wednesday's (7 September 2011) close of 46.1670/1750 after dipping to 46.2750--a level not seen since 16 September 2010. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Reliance Communications, India's No 2 mobile phone carrier by subscribers, rose 0.73% on reports that the company has received an order worth Rs 1400 crore for building and maintaining a data centre for HDFC Bank. The contract with HDFC Bank, the country's No. 3 lender, is for 15 years.
Fertiliser shares rose across the board. National Fertilizer, GSFC, Tata Chemicals and Chambal Fertiliser & Chemicals rose by between 0.37% to 5.23%.
Diversified Jaiprakash Associates fell 0.56% after the firm denied a report that it is in talks to sell up to 26% stake in its cement business to a strategic partner.
Metal stocks were mixed after LMEX, a gauge of six metals traded on the London Metal Exchange rose 1.97% on Wednesday, 7 September 2011. Sterlite Industries, Nalco and Hindustan Zinc rose by between 0.95% to 1.59%. Jindal Steel & Power, Hindalco Industries, Bhushan Steel, JSW Steel, Tata Steel, and Sail shed by between 0.44% to 2.47%.
Most auto shares gained. India's largest small car maker by sales Maruti Suzuki India advanced 0.39% after the chairman of the country's largest auto maker by sales R.C. Bhargava said that the company is considering building a new factory in Gujarat and may take a final decision in the next two to three months. Bhargava also said that a delegation from Maruti Suzuki, comprising Osamu Suzuki, chairman and chief executive of Maruti's parent Suzuki Motor Corp., will meet Gujarat Chief Minister Narendra Modi and other senior state government officials later Thursday to hold discussions about the proposed factory. This is still at an exploratory stage, Mr. Bhargava said. He said the auto maker is also considering other locations in India for the new factory, but he declined to give details.
Maruti's sales declined 13% to 91,442 vehicles in August 2011 over August 2010 hurt by disruption in production at Manesar plant caused by the labour unrest in end-August.
India's largest truck maker by sales Tata Motors rose 2.59%. Tata Motors sold 64,078 vehicles in August 2011, 3% down on last year. Car sales fell 33% to 16,829 vehicles but sales of trucks and buses grew 21% to 43,045 units. Tata Motors sold 1,202 units of its Nano minicar in August 2011, down 85% on year, as its Gujarat factory remained shut for two weeks for routine maintenance. Exports also fell 18% to 4,204 vehicles.
India's largest tractor maker by sales Mahindra and Mahindra (M&M) rose 0.53%. As per recent reports, the company raised prices by up to 2% for its entire range of products last month to offset the impact of high raw material costs. The company's sales rose 30.38% to 37,684 units in August 2011 over August 2010. The maker of the Xylo, Scorpio and Bolero models exported 1,928 autos, up 18% on year.
India's largest two wheeler maker by sales Hero MotoCorp rose 0.14% to Rs 2170.60. The stock had scaled a record high of Rs 2206 in intraday trade on 6 September 2011. The company's sales rose 19% to 5.03 lakh units in August 2011 over August 2010.
India's second largest two wheeler maker by sales Bajaj Auto fell 0.88% to Rs 1625.60. The stock had hit a record peak of Rs 1694.90 in intraday trade on 6 September 2011. The company's total sales rose 16% to a record 3.82 lakh units in August 2011 over August 2010. Motorcycle sales jumped 17% to a record 3.38 lakh units in August 2011 over August 2010.
Offshore oil services providers rose as crude oil prices surged. Aban Offshore, Deep Industries, Jindal Drilling, SEAMEC gained by between 0.5% to 4.79%.
State-run oil marketing companies (PSU OMCs) were mixed as crude oil prices surged. Indian Oil Corporation and BPCL rose by between 0.13% to 0.55%. HPCL fell 4.56% as the stock turned ex-divided today for dividend of Rs 14 a share for the year ended March 2011. Higher crude oil prices will result in increase in under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.
Shares of Oil exploration firms were also mixed. Higher crude oil prices will result in higher realization from crude sales. Cairn India rose 3.07%. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) fell 0.55%. India's second biggest oil and gas exploration firm by revenue, Oil India, rose 1.42%.
Airline stocks fell as a surge in crude oil prices and a weak rupee heightened concerns about the impact of high jet fuel prices on operating costs. Kingfisher Airlines, Jet Airways and SpiceJet shed by between 0.71% to 4.14%. Aviation turbine fuel, or jet fuel constitutes more than 50% of operating cost for airliners. Prices of jet fuel are directly linked to crude oil prices. State-run oil marketing companies--Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation revise jet fuel prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight.
Oil traded near the highest close in more than a month in New York on speculation a storm building in the Gulf of Mexico poses a threat to supplies in the US, which were reduced last week by an earlier cyclone. US crude futures for October 2011 delivery were down 9 cents or 0.1% at 89.25 a barrel.
Cals Refineries clocked highest volume of 5.97 crore shares on BSE. TD Power Systems (1.16 crore shares), K S Oils (67.10 lakh shares), Unitech (63.70 lakh shares) and Shree Ashtavinayak Cine Vision (60.80 lakh shares) were the other volume toppers in that order.
TD Power Systems clocked highest turnover of Rs 320.76 crore on BSE. RIL (Rs 133.12 crore), VIP Industries (Rs 105.93 crore), SBI (Rs 99.48 crore) and Delta Corp (Rs 62.23 crore) were the other turnover toppers in that order.
Foreign institutional investors (FIIs) bought shares worth Rs 262.43 crore on Wednesday, 7 September 2011, as per provisional data from the stock exchanges. FIIs bought shares worth a net Rs 2972.63 crore during six trading sessions from 29 August 2011 to 7 September 2011, as per data from the stock exchanges.
The government moved a step closer to an overhaul of century-old land acquisition laws on Wednesday by introducing a long-delayed bill in parliament that aims to draw infrastructure investment while compensating farmers and land-owners. The current parliamentary session ends on Friday, 9 September 2011 and the bill is unlikely to be passed before parliament reconvenes later this year. Compulsory land acquisition for the public good is a contentious issue as crowded India seeks to industrialize, with major factories, housing and transport projects held up by conflicts over land.
Annual inflation in the Food Articles group fell to 9.55% in the week ended 27 August 2011, from 10.05% in the previous week, the Commerce & Industry Ministry said in a statement. It was at 14.76% in the corresponding period of last year. However, inflation in the Primary Articles group climbed to 13.34% in the week under review, from 12.93% in the week ended 20 August 2011. It was at 15.24% in the year-ago period. Inflation in the Fuel & Power group was at 12.55% in the week ended 27 August, unchanged from the previous week, the latest data showed. It was at 12.61% in the comparable week of the previous year.
Good rains this year will help boost farm output which in turn could help cool food prices. The country has received 3% above-average monsoon rain so far, till 7 September 2011.
The Reserve Bank of India (RBI) has said that a change in anti-inflationary monetary stance will be motivated by signs of a sustainable downturn in inflation. Data on 12 September 2011 on industrial production for July 2011 and on 14 September 2011 on headline inflation for August 2011 will provide cues on the central bank's likely policy stance at its mid-quarter monetary policy review on 16 September 2011. The Reserve Bank of India has raised its key policy rate 11 times in the past 18 month to tame high inflation.
Montek Singh Ahluwalia, deputy chairman of the Planning Commission, today, 8 September 2011, said that he agrees with the finance minister's view on pausing India's tight monetary stance.
Moody's Investors Services affirmed its Baa3 rating for India's foreign currency government debt and its Ba1 rating for local currency debt in an annual credit analysis released early this week. The ratings firm assigned a positive outlook to India's rupee-denominated bonds, saying it will consider a unified Baa3 rating for all bonds if India improves its fiscal position and its commitment to strengthening the domestic market. The outlook for foreign-currency debt is stable.
The report was upbeat about India's ability to weather a global economic downturn. While it is not immune to an international growth slowdown, the strength of domestic demand and the diversity of the economy provides a buffer against a deceleration in globally exposed sectors, the report said. It noted that India's foreign currency reserves equal four times its foreign debt obligations.
A debt-to-GDP ratio of 71% is cause for concern, as interest on this debt eats up 25% of India's revenues annually. However, Moody's expects that continued GDP growth and incremental fiscal consolidation efforts will continue to lower the government debt/GDP ratio, the report said.
India's services sector grew at its slowest pace in more than two years in August 2011, throttled by feeble expansion in new business as a faltering global economy and tight domestic monetary conditions weighed, a survey showed on Monday, 5 September 2011. The HSBC Markit Business Activity Index, based on a survey of around 400 companies, slumped to 53.8 in August from 58.2 in July, the index's biggest one-month decline since January 2009. It was also the weakest growth since June 2009, but the index has stayed above the 50 mark that separates growth from contraction for 28 consecutive months.
The new business sub-index fell to its lowest level in three months in August, at 54.9 from July's 59.3, as dampening global economic conditions knocked orders. Expectations for new business were also scaled back in August. The survey also showed a reduction in service sector employment levels for the second consecutive month as new business growth slowed while input costs and output prices continued to march ahead.
India's manufacturing activity in August 2011 slowed to a 29-month low as exports took a beating amid the lingering uncertainty in the global economic environment, a survey showed last week. The seasonally adjusted HSBC Purchasing Managers' Index, prepared by Markit, fell to 52.6 in August from 53.6 in July. The pace of new order flows in August decelerated to the slowest in 29 months as export orders contracted at the sharpest rate since the series was started, HSBC said.
Production backlogs fell for the first time since March 2010 as pressure on operating capacity subsided. Also, inflationary pressures intensified as both input and output prices rose.
Exports surged 81.79% to $29.3 billion while imports jumped 51.5% to $40.4 billion in July 2011 over July 2010, leaving a trade deficit of $11 billion, data showed last week.
European stock markets edged higher in volatile trade on Thursday. Key benchmark indices in UK, France and Germany were up 0.05% to 0.22%. The European Central Bank (ECB) is expected to keep its key interest rate unchanged at 1.5% at its monthly policy meeting on interest rates today, 8 September 2011. Britain's central bank--Bank of England left interest rates at 0.5% on Thursday, leaving open the option of restarting its quantitative easing programme should the economy weaken further.
Most Asian stocks gained on Thursday, 8 September 2011, ahead of key policy statements due out of the US and Europe. The key benchmark indices in South Korea, Singapore, Taiwan, Japan, and Indonesia were up by between 0.1% to 0.87%. The key benchmark indices in Hong Kong and China fell by between 0.67% to 0.68%.
The Bank of Korea held off from raising borrowing costs today, amid mounting risks that the global recovery will stall.
China will unleash a host of economic data on Friday, 9 September 2011, with the focus squarely on inflation. Any upside surprise, especially a number above the July inflation, would be negative for stocks in China, and would likely also hurt equities elsewhere in Asia. With food and fuel prices spiking, Chinese inflation hit a three-year high of 6.5% in July 2011, prompting some monetary tightening moves from the People's Bank of China.
US index futures were volatile. Trading in US index futures indicated that the Dow could fall 23 points at the opening bell on Thursday, 8 September 2011.
Federal Reserve Chairman Ben Bernanke is due to speak on Thursday, 8 September 2011, on the outlook for the US economy and the possibility of further quantitative easing, his last scheduled speech ahead of the Federal Open Market Committee's two-day meeting on 20 and 21 September 2011. Bernanke on 26 August 2011 refrained from stating that the Federal Reserve will immediately introduce new measures to support the US economy, saying instead that options would be discussed at the Fed's meeting in September 2011.
Global stock markets put in a strong performance on Wednesday, 7 September 2011, after a German court ruled in favor of proposed euro-zone bailouts, the Federal Reserve's Beige Book indicated that the US economy is still growing, and as details emerged on the US president's job-creation proposals to be unveiled later on Thursday, 8 September 2011. In an address to a joint session of Congress Thursday night, US president Barack Obama plans to propose bolstering employment by injecting more than $300 billion into the economy next year, mainly through tax cuts, infrastructure spending and aid to state and local governments.

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Winning Strokes: Think Different

Future Enterprises Ltd (Rs.46.15) recommended around Rs.18.20, made a fresh 52-week high yesterday, as it touched my target of Rs.47, intra-day. What to do now? Join my Premium Service or trade through my recommended brokerage house, to stay ahead  of others.

After superb performance of my recommended Tata Steel from  Rs.217 to above Rs.635, I feel  soon other steel stocks will also join the bandwagon. Considering such case, I have already recommended a buy on Jai Balaji Industries Ltd at around Rs.12-12.50.

Unitech Ltd (Rs.765) seems to have never ending problems and also the management is not bothered about the plight of the shareholders. In such cases, I would suggest you to exit the stock and enter HDIL at Rs.62.

Prakash Industries Ltd (Rs.122), was recommended by me several times at around Rs.43-44, after I somehow came to know of its BJP linkage. However, considering the current scenario it would be better if you exit the scrip on rallies.

Mandhana Industries Ltd (Rs.6.12) hit another buyer freeze yesterday. Those who have still not entered the counter or want to average, can do the same.

WINNING STROKES: THINK DIFFERENT

I am going to increase the price of Paid Service from 1st May, 2012 and  hence those who want to enroll should do that before the specified period. Also, those who will join my brokerage house, will get one year FREE SUBSCRIPTION of the Paid Service. Get AFTER MARKET OPENING STRATEGIES AND CONSTANT SUPPORT IN YAHOO MESSENGER/GOOGLE TALK during the market hours. Moreover, if you put a minimum balance of Rs.2 lakhs (Rs.5 lakhs for other brokerage accounts), in my brokerage account, then you can go for profit sharing arrangement.....

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Reliance Industries Ltd recommended to the Paid Service members, a couple of days back around Rs.728, reached its first target of Rs.745, as it touched Rs.750.80, intraday. The 2nd target of the scrip is Rs.760. 

Central Bank Ltd recommended at Rs96, reached its 1st target of Rs.100, as it crossed Rs.101, intra-day. I think most of the Paid Service members made profit on the counter. 

IFCI Ltd recommended aggressively at around Rs.39.50, only a couple of days back touched Rs.42, and is now threatening to cross Rs.47-49, in the coming days. It has one of the best fundamentals in the financial sector. 

Voltas Ltd recommended to the Paid Groups, around Rs.111, in view of ensuring summer season, when the demand for air-conditioners and coolers increase, touched Rs.12.90, intra-day. The stock is expected to touch the 1st target with the next few days. 
What is the latest on Country Club India Ltd, Jai Balaji Industries Ltd, Kohinoor Broadcasting Corporation Ltd, Allied Digital Services Ltd, Prakash Industries Ltd, Prajay Engineers Syndicate Ltd and on....??!! Make money by getting advanced information on the scrips. Stop investing blindly or just depending on tips. Get market research reports.....much more. Join Paid Service.

Market Mantra

I have recommended a buy on Sintex Industries Ltd for the very short term, at Rs.94.5--96, T--Rs.99, SL--Rs.91. The stock probably gave a break out today. 

Jai Balaji Industries Ltd hit another buyer freeze today. The stock is moving up everyday.  The company's new plant would be in operation soon and the rally in the scrip is probably to incorporate this good news. 

Those who are holding Prakash Industries Ltd can book some profits and wait for the scrip to cross Rs.63 and close above it, before taking fresh positions. 
Please accumulate KSK Energy Ventures Ltd at Rs.67 today. It is a giant in its space, and may be in future you would not be able to get such a high-voltage company at such a price.

Today Ashok Leyland Ltd is on fire as the scrip touched Rs.27.80. This stock is expected to make new 52-week high this time. Those who are holding the scrip from Rs.26.50, can continue to hold and add the scrip on all declines. It is one of the cheapest stocks in the automotive space.

Sensex regains 15,000: Karuturi Networks Ltd mentioned(along with a brief report) in the last Sunday Report to Premium Group Members of SumanSpeaksPremium, hit the buyer freeze yesterday, after it became the worlds largest supplier of Roses. Now keep watch on Pochiraju Industries Ltd which is also in the same fields, having much better fundamentals than the former: Kanishk Steel Industries Ltd recommended at Rs.43 and Rs.44, hit the buyer freeze: Oscar Investments Ltd recommended at Rs.198, a Ranbaxy Group company hit third consecutive buyer freeze: One can try Refex Refrigerants Ltd today at Rs.64--Rs.65 range for some decent appreciation in 8-12 months time frame. The company is into making of eco-friendly refrigerants(HFCs) gases for refrigerator and air-conditioners. The company's order book is bursting at the seams, a case akin to AIA Engineering Ltd when it was at Rs.450. Its peer group companies are Navin Fluro and Gujarat Flurochemicals Ltd, which are trading at rich valuations. A carbon credit story could also be spun out for the company as it makes eco-friendly gases, which are non-Ozone depleting. In Summer months, the demand for its products reaches peak and hence the catch: The market settled with gains for the fourth straight session on continued buying demand for index pivotals as US stocks rallied overnight on expectation that the US Federal Reserve would cut rates in September 2007 to cushion the impact of the subprime crisis on the broader US economy. A bout of volatility was witnessed towards the fag end of the trading session ahead of expiry of August 2007 derivatives contracts. The BSE Sensex settled above the 15,000 mark while the S&P CNX Nifty ended above the 4,400 level. Turnover surged. The BSE 30-share Sensex up 128.70 points or 0.86% at 15,121.74. It opened with a 175.65-point upward gap at 15,168.69 and advanced further to hit a high of 15,200.81. The index touched a low of 15,053.98. It oscillated in a range of 114.71 points for the day It has now surged 957 points in four trading sessions, from its close of 14,163.98 on 23 August 2007. The S&P CNX Nifty was up 53 points or 1.22% at 4,412.30. August 2007 futures & options (F&O) contracts expired yesterday The Nifty September 2007 futures settled at 4350, a sharp discount of 62.30 points as compared to spot closing. The total turnover on BSE spiked to Rs 5,378 crore as against Rs 4,815 crore yesterday, 29 August 2007. The NSE’s F&O turnover also surged to Rs 71,282.94 crore as compared to Rs 76,510.22 crore yesterday, 29 August 2007. The market breadth was strong on BSE, with 1,578 shares advancing as compared to 1112 that declined, while 84 remained unchanged. The BSE Mid-Cap Index rose 0.54% to 6,485.44, the BSE Small-Cap Index gained 1.06% to 7,957.96 All the sectoral indices on BSE settled with gains, except the BSE Realty index, which lost 1.28% to 7,116.08 BSE Auto Index (up 1.38% at 4,776.70), BSE IT Index (up 1.06% at 4,552.30), BSE Consumer Durables index (up 0.93% to 4,271.85), BSE TecK index (up 1.06% to 3,592.90) and BSE Bankex (up 1.29% at 7,751.50), outperformed the Sensex. However, BSE Capital Goods Index (up 0.45% at 13,306.72), BSE Health Care Index (up 0.43% at 3,501.17), BSE Metal Index (up 0.83% at 11,297.31), BSE FMCG Index (up 0.67% at 1,949.32), BSE Oil and Gas Index (up 0.50% at 7,976.43) ,BSE PSU index (up 0.28% to 6,949.07), and BSE Realty index (down 1.28% to 7,116.08) underperformed the Sensex. Among the 30-member Sensex pack, 21 advanced while the rest declined. Mahindra & Mahindra, the country’s top tractor maker by sales, rose 2.47% to Rs 672 on 1.15 lakh shares. It was the top gainer from Sensex pack. The stock rose on reports that it is conducting due diligence on Jaguar and Land Rover, put up for sale by Ford. Other potential bidders include private equity groups TPG Capital, Cerberus Capital Management, Ripplewood Holdings, One Equity Partners and Tata Motors. India's top truck maker Tata Motors rose 0.59% to Rs 679, off its day’s high of Rs 699. Banking shares advanced on fresh buying on a view that interest rates have peaked. ICICI Bank (up 1.46% to Rs 869.50), HDFC Bank (up 2.02% to Rs 1180), Syndicate Bank (up 2.77% to Rs 76), Allahabad Bank (up 3.41% to Rs 88), Canara Bank (up 1.54% to Rs 240) and Andhra Bank (up 2.11% to Rs 82.35), advanced. Market expectations peg inflation rate at 3.94% for 12 month to 18 August 2007 compared to previous week’s 4.1%. The data will be released by the government tomorrow, 31 August 2007, afternoon. India’s largest pharma company by sales Ranbaxy Laboratories rose 1.60% to Rs 378. Recently, US Food and Drug Administration gave approval to the company to make and market two drugs hydrocodone bitartrate and acetaminophen prescribed for pain relief. Total annual market sales of the drugs were $391 million. India's largest firm by market capitalisation and oil refiner Reliance Industries (RIL) slipped sharply just before closing bell. It was up marginally by 0.11% to Rs 1891.80 on 8.96 lakh shares, after surging to a high of Rs 1924. A newspaper reported on Wednesday, 29 August 2007, the government is likely to approve a pricing formula for the company's natural gas within a few days. The stock had hit an all- time high of Rs 1948 on 26 July 2007. India’s second largest software services exporter Infosys Technologies rose 1.42% to Rs 1860. As per report, Infosys Technologies plans to increase billing rates for new customers by 3-4% due to the sharp appreciation of the rupee against the dollar. The billing rates for existing contracts could increase by 2-3%. Infosys gets about 60% of its revenue from the United States. Tata Consultancy Services (TCS), the country’s leading software services exporter rose 0.80% to Rs 1040 after it won a deal worth Rs 574 crore ($ 140 million) over a multi period from BSNL to provide comprehensive range of telecom services. The rupee was hovering at 41.13, slightly weaker than Wednesday (29 August 2007)’s close of 41.10/41.11 Cipla, the country’s third largest pharma company by sales lost 2.50% to Rs 165.50 on 8.71 lakh shares. It was the top loser from the Sensex pack. Reliance Energy (down 1.80% to Rs 768.10), State Bank of India (down 0.74% to Rs 1563.25) and Bharti Airtel (down 0.53% to Rs 875) were the other losers from the Sensex pack. India’s largest power equipment maker by sales Bhel declined 0.87% to Rs 1835.30, off the session’s high of Rs 1884, after the company won a Rs 1990-crore order for supply and installation of power equipment to a project in southern India. Tata Steel, the world's sixth largest steel manufacturer lost 0.51% to Rs 656.50. It came off sharply from day’s high of Rs 679.80. It had surged 9.2% to Rs 659.85 yesterday, 29 August 2007 after it recorded a consolidated net turnover of Rs 31,155 crore for Q1 June 2007, an increase of 442% over the same period last year, on the back of Corus acquisition. Its consolidated operating profit surged 186% to Rs 4,904 crore in Q1 June 2007 over Q1 June 2006. The results also include an extraordinary item of Rs 4,121 crore primarily representing actuarial gains due to increase in yield rates on bonds held by various pension funds of Corus. Three block deals of 18.85 lakh shares each were struck in Axis bank counter at an average rate of Rs 614 per share on BSE in opening trade. The stock rose 2.44% to Rs 627 on high volume of 82.33 lakh shares. Sugar shares surged for the second consecutive day on reports that a group of ministers (GoM) had recommended mandatory blending of 10% ethanol with petrol by October 2008 to deal with the massive oversupply of sugar. Dwarikesh Sugar (up 10.26% to Rs 56.40), Sakthi Sugar (up 8.93% to Rs 78.70), Triveni Sugar & Industries (up 11.19% to Rs 80), Balrampur Chini Mills (up 2.68% to Rs 61.35), Shree Renuka Sugars (up 0.45% to Rs 534.50), Dhampur Sugar Mills (up 5.17% to Rs 54.90) and Bajaj Hindustan (up 2.54% to Rs 137.50) gained. In a related move, the GoM has also suggested that the import duty on imported industrial ethanol be reduced from 7.5% to 5%. Puravankara Projects settled at Rs 361.75 on BSE, a discount of 9.56% over the IPO price of Rs 400. On BSE, 71.23 lakh shares of the scrip were traded. The stock debuted at Rs 399 on BSE, a discount of 0.25% over the IPO price of Rs 400. It hit a high of Rs 399 and a low of Rs 357.55. The IPO had ended on 8 August 2007 with 1.91 times subscription. Among the side counters, Kemrock Industries (up 10.63% to Rs 342), Rasoya Proteins (up 15.88% to Rs 63.50), Aristocrat (up 10% to Rs 57.20), Kirloskar Electric (up 10% to Rs 231) and Aarvee Denim (up 10% to Rs 88.60) gained. Cambridge Solutions (down 8.64% to Rs 111), Jindal Worldwide (down 7.87% to Rs 117), Fortis Healthcare (down 7.22% to Rs 81), Khaitan Industries (down 6.63% to Rs 50) and TCI Industries (down 5% to Rs 3691) declined. VSNL surged 5.59% to Rs 403 after its ADR gained 3.65% to $18.47 overnight on New York Stock Exchange (NYSE) on Wednesday, 29 August 2007. ICSA (India) surged 5.60% to Rs 1752.10 after its board approved 5-for-1 stock split. Bartronics India rose 2.57% to Rs 197.95 after its board approved the issue of foreign currency convertible bonds (FCCB),Global depository receipts (GDRs) and/or American depository receipts (ADRs) of $ 50 million. Real estate major DLF slipped 0.80% to Rs 591. It will develop a 250-room super luxury five-star hotel with premium brand Four Seasons Hotels and Resorts in Gurgaon at an investment of Rs 600 crore. The hotel project will be developed in around 10 acre land at DLF Golf Link in Gurgaon by DLF Hotels - the hospitality arm of DLF. Escorts gained 4.45% to Rs 89.25. Yesterday, 29 August 2007, National Stock Exchange banned building fresh positions in the company’s derivatives contracts as the open interest crossed 95% of the position limit. GlaxoSmithKline Pharma rose 3.35% to Rs 1162. The company, recently launched anti-cervical cancer vaccine Cervarix in Southeast Asia. The drug combats the virus that is responsible for over 70% of cervical cancer cases worldwide. Andhra Cement jumped 7.10% to Rs 37 after a block deal of 66 lakh shares at Rs 40 per share on BSE in opening trade. At the strike price of Rs 40 per share, the total deal size works out to Rs 26.40 crore. Sun TV Network rose 5.47% to Rs 329 after it said during trading hours yesterday, 30 August 2007, its unit has bought 48.9% stake in Red FM to expand its radio FM business to the north, west and east Indian markets. Karuturi Networks advanced 3.80% to Rs 194 on reports that it has acquired Dutch floriculture firm Sher Agencies in a deal worth $69 million to become the world's largest rose producer. Vijaya Bank surged 5.36% to Rs 56 after its chairman and managing director Prakash P. Mallya said on Wednesday, 29 August 2007, the bank plans to sell its stake in Principal Pnb Asset Management Company. Software services firm 3i Infotech slipped 0.15% to Rs 138.85. It said after trading hours on Wednesday, 29 August 2007, it had acquired 51% in back-office services firm HCCA Business Services Dry-cell battery maker Eveready Industries lost 4.12% to Rs 52.40 after it said during trading hours yesterday, 30 August 2007, its board would meet on 6 September 2007 to consider raising funds through issue of shares and warrants to promoters and other investors. For the second day India Foils gained on reports yesterday that Ess Dee Aluminium was in the final stages of negotiations to acquire it. The stock surged 5% to Rs 11.13 yesterday. Reportedly, Ess Dee would use the Rs 81.08 crore that it raised by selling a 5% stake to Morgan Stanley for the acquisition. It had surged 5% yesterday, 29 August 2007. New Delhi Television vaulted 3.47% to Rs 351.95 on reports that UB group may announce 5-year advertisement commitment of Rs 100 crore to company’s forthcoming lifestyle channel, NDTV Good Times. Construction firm Gammon India rose 2.06% to Rs 455. It entered the hospitality sector by forming an alliance with the US-based Wyndham Hotel Group International, Inc., to develop affordable or budget hotels. The Wyndham Group, which runs more than 6,500 hotels under 10 brands in six continents, is one of the largest hospitality companies in the world. Most of the Europe markets were trading higher yesterday, 30 August 2007. Key benchmark indices from France (up 0.26% to 5,534.56) and United Kingdom (up 0.21% to 6,145) advanced. Germany’s DAX slipped 0.09% to 7,432.69 All Asian markets were trading higher yesterday, 30 August 2007, except Singapore's Straits Times (down 0.41% at 3,321.15). Hang Seng (up 2.02% at 23,486.29), Shanghai Composite (up 1.14% to 5,167.57), Japan's Nikkei (up 0.88% at 16,153.82), Taiwan Weighted (up 1.48% at 8,772.20), and South Korea's Seoul Composite (up 0.85% at 1,841.70) edged higher. US stocks rallied across the board on Wednesday, 29 August 2007 boosted by strong gains in technology and energy shares. The Dow Jones Industrial Average surged 247 points, or 1.9%, to 13,289. The S&P 500 index rose 31 points, or 2.2%, to 1,463 and the technology-laden Nasdaq Composite rallied 62 points, or 2.5%, to 2,563 points. Crude oil prices steadied on Thursday, 30 August 2007. US crude inched up 2 cents to $73.53 a barrel. The government has decided to form a panel to study a controversial nuclear deal with the United States, taking into account objections from communist parties. The announcement came after a meeting between senior government leaders and their communist allies who have demanded the deal be put on hold. Foreign Minister Pranab Mukherjee said the operationalisation of the deal will take into account the committee's findings. The announcement came after trading hours yesterday, 30 August 2007. The Communist Party of India (CPI) on Tuesday, 28 August 2007, said it had no intention of destabilising the government and force an immediate election on the contentious Indo-US nuclear deal issue. The party, however, wanted its concerns on the deal to be addressed by the ruling coalition by a mechanism, like a committee at the political level, to clarify all doubts on 123 agreement and allied matters like the Hyde Act. The UPA government and the Left parties, on Monday 27 August 2007, agreed to formalise a joint mechanism to address the latter's objections on the civil nuclear deal with the US. But the Left's main demand of not proceeding with International Atomic Energy Agency (IAEA) negotiations remaineds unresolved. In a meeting of government with the Left party leaders held on Monday, 27 August 2007, Left parties had reiterated their that they would agree to participate in the mechanism, but the government shouldn't go ahead with next round of IAEA negotiations. The Left Front's opposition to the nuclear deal with US had stoked concerns over the past few days that if the Communist allies of the ruling coalition government at the Centre decide to pull their support, the government will be reduced to a minority, triggering fresh elections. [From Internet]

Note: The last date for enrolling for the Premium (Paid) Group Membership, with Introductory Offer expires today (31st August, 2007). My congrats!! to all those who have availed of this offer before the expiry and made money. From tomorrow the price of this package will be revised and some additional features will be included into it within a short time. If anyone still wants to enroll today, then he/she should send a mail at suman_2004s@yahoo.co.uk or suman2005s@rediffmail.com.

Market Mantra: Uptrend like to gather steam

Market was dominated by the bull on Friday. A gap up opening was followed by sustained buying in stocks across the board. Opening of 5206 remained as low of the day. Nifty made an intra-day high of 5307 and settling at 5295 with a superb gain of 116 points on the table.
Once again the level of 5150-5200 provided strong support to Nifty. Strong bounce back from a low of 5135 to a high of 5307 within two trading sessions clearly shows path ahead. Today's trading pattern also confirms a strong bull action. Correction seems over and uptrend is very likely to get resumed. Long positions should be taken for a target of 5500-5600 keeping a stop of 5100. Nifty is now trading at 5317 and it should improve as the day ends, because there is as such very little negative news in the markets. 

Dish TV Ltd today reached the 2nd target of Rs.65 in the late afternoon trade. Those who are holding can book some profits in the counter. Also, IFCI Ltd touched Rs.42.75 in the morning trade. This is a massive company and I hope to see the stock price cross Rs.49-50 soon, as the RBI will have no option but to cut rates,  because keeping the interest rates at elevated levels is not helping anyone any more. The capex of the companies are getting stalled and there is already scarcity of the products leading to artificial demand pull. Look at the real estate market in Mumbai, where the prices of properties  have not come down, inspite of having a high interest rate regime for more than one and half years. Why? Because the high interest rate has  been passed on to the customers, effortlessly, adding to the inflation. Moreover, in absence of any viable investment option, except those old and boring bank FDs, all the money (Black/White/Red/Green......) is flowing into the real estate market, creating problems of housing for the common man. This is also creating unnecessary bubble like situations in the real estate markets all over India, especially in Metros like Mumbai, Kolkata, Hyderabad, etc. In order to stop this, the interest rates should come down.....Therefore, RBI has no option but to cut rates immediately, as one cannot run a modern and sophisticated economy with 1930s economic policies. Buy all the bank stocks and keep them holding--all will give huge returns going forward.  

Also, we need to remove the current backdated FM (and the blind Prime Minister) and almost all the office bearers of RBI, who have destroyed a growing economy gifted from the NDA!! The current FM interestingly talks and talks and talks of global economic crisis and "Coalition Dharma" while he fails to come up with policies that can stimulate growth. The questions is: who has asked him or his ministry not to come up with policies that can bring prosperity to Indians? Really Hilarious isn't it...??!! He should be given some comedy roles in a Bollywood flick, as he is not fit for the job. Does, the FM know that during (almost) last 4-5 years, the equities have given very little income, except may be some drops here and there......!! Does he want to kill the market participants? Can't we have a market friendly Finance Minister of this great country? These fools in the government want to bleed the gems like Coal India Ltd, Indian Railways, etc, tax companies retrospectively.......swindle money in the form of 2G spectrum........Keep high interest rates for years to help the companies like Reliance Industries Ltd (who has huge unused cash in the books) and pensioners (inflation control is just a lip service--the real intention is elsewhere).....What is going on in India,.....except preparing grounds for something like French Revolution!! If this goes on, then I would not be surprised if some of heads of the ruling regime are rolled under guillotine. We have already seen how that rogue, Mr.Sharad Pawer, tasted a slap on his face.....and Baba Ramdev (Ram Krishna Yadav)/Anna Hazare has shown what people can do, if their energies are synchronized to form a mass movement........!! This UPA government has only brought shame to India and Indians.The UPA government should resign and go for a fresh mandate!!

BTST given to the Paid Members today: 

(i) Buy Escorts Ltd at Rs.71.5-73, T--Rs.75-78, SL-Rs.70.5.

(ii) Buy Hindustan Oil Exploration Ltd at Rs.116-119, T-Rs.123-128, SL--Rs.114.
(ii) STBT (F & O): Sell Aurobindo Pharma_April at Rs.114.5-117, T-Rs.111-107, SL-Rs.119.

Today Prakash Industries Ltd hit the 2nd consecutive buyer freezes also  have a look at Jai Balaji Industries Ltd, which also could start  hitting buyer freezes due to some positive developments in the sector and in the counter.  

Market Pulse

Key benchmark indices witnessed a downward trend in early trade. The Sensex is now trading at 33,379.02 down 76.77 points or 0.23%. The Nifty is now trading at 10,291.20 down 31.05 points or 0.30%.

The S&P BSE Mid-Cap index fell 0.1%. The S&P BSE Small-Cap index declined 0.04%. Both the indices outperformed the Sensex.

Overseas, Asian stocks edged higher following a strong lead from Wall Street overnight. US equities closed higher yesterday, 11 December 2017, reversing earlier weakness following a terror incident near New York City's Times Square. The Dow Jones Industrial Average and the S&P 500 notched record closing highs.

The US Federal Reserve's Federal Open Market Committee (FOMC) starts its two-day meeting on interest rates later in global day today, 12 December 2017. The US Federal Reserve will announce its interest rate decision tomorrow, 13 December 2017. The Federal Reserve left the target range for its federal funds rate unchanged at 1% to 1.25% during its November 2017 meeting as widely expected.

Closer home, the breadth, indicating the overall health of the market, was positive. On the BSE, 634 shares rose and 588 shares declined. A total of 47 shares were unchanged.

Asian Paints fell 1.91% at Rs 1,106.50. The company said that it purchased the balance 49% stake in the kitchen solution provider company, Sleek International, from Ahuja Family and the shareholders agreement dated 8 August 2013 with the Ahuja Family has been terminated. Sleek has now become a wholly-owned subsidiary of the company. The announcement was made after market hours yesterday, 11 December 2017.

On 8 August 2013, Asian Paints had announced that it acquired 51% stake in Sleek from the Ahuja family by entering into a shareholders agreement with the Ahuja family and Sleek.

On macro front, the government will announce industrial production data for October today, 12 December 2017. India's industrial production increased by 3.8% year-on-year in September, following an upwardly revised 4.5% gain in the previous month in August.

The government will announce today, 12 December 2017, inflation data based on consumer price index (CPI) for November. Consumer prices increased 3.58% year-on-year in October, above 3.28% in September.

Today's Calls:

#Intraday Sell Indian Bank Ltd at around Rs.385.5, SL:N Rs.389, T: Rs.378.

#Intraday Sell Pidilite Industries Ltd at around Rs.893, SL: Rs.901, T: Rs.878-872. Book Partial Profit around Rs.885.
1st target of Rs.878, almost achieved--made a low of Rs.878.60, till now. Book Full Profit at around Rs.874.80.

#Suzlon Energy Ltd (Rs.13.85) is consolidating around the price range of Rs.13.85-13.80. Suzlon Energy had in June, '17 approved allotment of 79.70 lakh shares on conversion of 2,046 foreign currency convertible bonds, maturing in July 2019, at ₹15.46 each. The conversion rate for the equity share allotment is ₹60.225 per dollar. Following the allotment, the paid-up capital of the company has increased to ₹1,038.41 crore.
Meanwhile, the auction in the Wind and Solar Energy space has commenced. Moreover, due to less capacity addition in FY18, there are chances of energy prices firming-up in the coming days. Moreover, India has an ambitious target of 175,000 megawatt (MW) of renewable power by 2022. India, at present, has an installed capacity of 60,157 MW renewable power and a rapid development is expected in the next five years.
Besides, aiming to address the quality issues in India’s rapidly growing renewable energy sector, the union ministry of new and renewable energy (MNRE) has come out with a new policy for “testing, standardisation and certification” of products in the renewable energy sector. The policy also aims to develop standards for all renewable energy equipment in line with the international practices.The concerns of the government are not ill-founded as voices have been raised about poor quality Chinese solar modules— rejected by developers—being sold in the Indian market at a discount. This is likely to help the reputed players in this space, like Suzlon Energy Ltd. I am looking for targets of Rs.19-22, by March, '18.
Most of its non-auction based order book has power purchasing agreements (PPAs) and is executing them. The rest of the orders are in the process of obtaining PPAs. So, the whole 1,562-megawatt (MW) order book (231MW solar and 1,331MW wind) is intact and executable.
In terms of commissioning volumes, the market is expected to see slower growth in the current fiscal, compared with the year gone by. But Suzlon expects to continue to gain market share—it aims to increase it from 32% in 2016-17 to 40% in the current fiscal—helping it outdo industry performance. In another development, Brent crude oil prices have climbed past $65 a barrel on Forties pipeline shutdown. This has pushed the shares of my recommended Aban Offshore Ltd to around Rs.207 today. This development is likely to give a positive movement to the shares of Renewable Energy companies like Suzlon Energy Ltd.
Anyway, the FCCBs has been priced at around Rs.15.46 and hence in any case the share should move above Rs.15. Or in the current scenario, the share price should invariably trade above Rs.15, the 1st resistance coming at Rs.15.20. Yesterday, the percentage of  Deliverable Quantity to Traded Quantity
in Suzlon Energy Ltd was whooping 38.51% -- this shows that large scale accumulation is going in the scrip by the informed investors.

#Jai Balaji Industries Ltd today hit the Upper Circuits at around Rs.22.05 and is now trading at around Rs.21. The scrip which was recommended around Rs.12-14, gave good returns to the investors in the short term. However, I would suggest non-risk taking investors to book full profits in Jai Balaji Industries Ltd at around Rs.21-22 and shift to Uttam Galva Steels Ltd at around Rs.23.50-24, which has a similar story, but has not moved up. Having said that, if you are thinking of taking too much risk in Jai Balaji Industries Ltd, then you can hold the scrip with a SL of Rs.18.6 -- there is a very strong resistance at Rs.24.
Meanwhile, the Billionaire Lakshmi Mittal’s ArcelorMittal recently said that its 29% equity stake in Uttam Galva Steels Ltd will not impede them from participating in bidding for stressed steel assets in India. 

#Today Shilpi Cable Technologies Ltd tanked to around Rs.13, but according to my close sources the company is functioning normally. In case if you are too apprehensive after buying the share, then please do put at SL at Rs.12.50. I on the contrary feel that the downside is limited, and it has huge upside, especially when the Sensex is above 33k.

#Today Unitech Ltd touched Rs.8.30, due to sustained buying, however, I feel for the time being you should book complete profit and let the stock to stabilize before it again jumps above Rs.8.30. I think you have read the media reports that Unitech Ltd's management has moved the honouable Supreme Court after NCLT recently invoked the provisions of the Companies Act, allowed the central government to take over the Unitech Limited and appoint its nominee directors in the Board of the firm.

#P C Jewellers Ltd recommended at around Rs.396, last Thursday, today touched Rs.450.90. I feel most of you by now have booked profit in the counter. If you remember, I have recommended this stock several times in this blog. If I can recollect correctly, I started recommending this stock from around Rs.82-84, in this blog.

#Those who are still holding the shares of SKM Egg Products Ltd (Rs.90), should keep a SL at Rs.86. The poultry is expected to do well in the coming days, with the rise in population. But I am not too bullish in this scrip, as of now.

#The shares of Prakash Industries Ltd, an integrated steel player with mines, today touched Rs.154.80. I  had recommended this stock several times in this blog starting from Rs.41-42; during the last few years. The steel sector is showing a turnaround and most of players is expected to do well in the coming few months.

#Energy Development Ltd (Rs.28) is on fire today. You can hold the stock with a strict stop loss of Rs.26. This is Amar Singh and Jaya Prada company. In stock market you need to buy and hold a scrip with appropriate stop losses in place, to make money on a consistent basis.

~~with inputs from Capital Market - Live News

Jaiprakash Power Ventures win Amelia North coal mine

[Editor: Apart from this news, you must have seen the recent media reports that Jaiprakash Power Ventures Ltd’s second unit of 660 MW of (2 x 660 MW = 1320 MW) Jaypee Nigrie Super Themal Power Project (JNSTPP), has started commercial operation with effect from February 21, 2015. Thus, 1320 MW JNSTPP of the company stands fully operational. Jaiprakash Power Ventures is part of India’s leading Infrastructure conglomerate - Jaypee Group. Currently the company operates the largest hydroelectric power plant in the private sector in India. Its power projects which are in different stages of implementation include Hydro, Thermal and Transmission. Therefore, it is one best times to invest in the shares of Jaiprakash Power Ventures Ltd (Rs.11.50), with all the positive developments in its stride. Buy at around Rs.11.50, for a short term target of around Rs.14-15]

NEW DELHI, February 17, 2015, : Jaiprakash Power Ventures today bagged the Amelia (North) mine in Madhya Pradesh quoting Rs 712 per tonne, the highest among 11 firms including Adani Power, BALCO and Essar Power.

Bids are underway on the fourth day of auction for another two coal blocks - Ardhagram in West Bengal and Chotia in Chhattisgarh to be given to firms in non power sector.

"Jaiprakash Power the highest bidder at (Rs) 712 (a tonne) for Amelia North," Coal Secretary Anil Swarup tweeted.

The ten companies in the race for Amelia (North) mine apart from Jaiprakash Power Ventrues Ltd were - Adani Power, Bharat Aluminium Co Ltd (BALCO), Essar Power M P Ltd, GMR Chhattisgarh Energy Ltd, GVK Power Goindwal Sahib Ltd, Jindal Power Ltd, JSW Energy Ltd, KSK Mahanadi Power Company, RattanIndia Power Ltd and Reliance Geothermal Power Pvt Ltd.

The mine has extractable reserves of 70.28 million tonne (MT).

The other two mines - Ardhagram and Chotia for which bidding is on, have extractable reserves of 19.29 MT and 13.57 MT respectively.

Earlier tweeting on auctions, Swarup said "coal block auction gets underway on the fourth day adding that poor states will reap benefits of coal block auctions."

The five companies vying for Ardhagram coal mine are Easternrange Coal Mining Pvt Ltd, Monnet Ispat and Energy Ltd, OCL Iron & Steel Ltd, SS Natural Resources Pvt Ltd and Visa Steel Ltd.

The technically qualified bidders for Chotia mines are Balco, Godawari Power & Ispat Ltd, Hindalco Industries, Prakash Industries, Rungta Mines and Ultratech Cement Ltd.

Yesterday, Jai Prakash Associates, Durgapur Projects and B S Ispat -- had bagged one mine each, even as the government said that it expects more aggressive bidding for blocks as the mines were already producing.

After the Supreme Court cancelled allocation of 204 mines in September, the government decided to auction the blocks. It has put 19 blocks on sale in the first tranche. The last day for the auction of first lot of mine is February 22.

Courtesy: The Economic Times

WINNING STROKES

The stock market registered modest gains as bargain hunting emerged on the bourses after seven straight sessions of losses. The barometer index, the S&P BSE Sensex, rose 330.45 points or 0.97% at 34,413.16. The Nifty 50 index advanced 100.15 points or 0.96% at 10,576.85. Pharma stocks advanced. Cement major ACC surged after reporting strong Q4 results. Bhel advanced after strong Q3 earnings.

Key indices opened higher and extended gains in mid-morning trade. Later, indices traded within a narrow range with strong gains till afternoon trade. Indices trimmed some gains in mid-afternoon trade and closed with modest gains with a bit of volatility seen in the last hour of trading.

Stocks advanced as bargain hunting emerged after seven straight sessions of sell-off in the domestic equities in the wake of a combination of domestic and global factors. Lesser hawkish tone of the Reserve Bank of India (RBI) in its monetary policy meeting concluded yesterday, 7 February 2018, also supported the gains on the bourses. The central bank had kept key policy rates on hold, reiterating its intention to keep an eye on the inflation figures going forward and to support growth.

Earlier, the key indices had declined for seven sessions in a row after the Government announced re-introduction of long term capital gains (LTCG) tax on equities exceeding Rs 1 lakh at 10% in Budget 2018, surging interest rates on sovereign debt in US, and amid rising global crude oil and commodity prices.

Overseas, European stocks edged lower as investors waded through the latest batch of corporate earnings, ahead of a central bank decision in the UK. Asian stocks ended on a mixed note. China's trade surplus shrank in January on huge imports surge, data released today, 8 February 2018 showed. Trade surplus for January, in Yuan terms, came in at CNY 135.80 billion.

US stocks declined yesterday, 7 February 2018, after trading in a wide range again, as interest rates climbed back toward multi-year highs.

Among secondary indices, the S&P BSE Mid-Cap index rose 1.82%. The S&P BSE Small-Cap index advanced 2.25%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was quite strong. There were more than three gainers for every loser on BSE. 2,172 shares advanced and 640 shares declined. A total of 118 shares were unchanged.

The total turnover on BSE amounted to Rs 5547.07 crore, compared with the turnover of Rs 4395.53 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 2.91%), the S&P BSE Realty index (up 2.51%), the S&P BSE Basic Materials index (up 2.48%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.63%), the S&P BSE Industrials index (up 1.45%), the S&P BSE Telecom index (up 1.45%), the S&P BSE Capital Goods index (up 1.44%), the S&P BSE Teck index (up 1.41%), the S&P BSE IT index (up 1.40%), the S&P BSE Metal index (up 1.35%), the S&P BSE Consumer Durables index (up 1.32%), the S&P BSE Finance index (up 1.28%), the S&P BSE Auto index (up 1.17%) and the S&P BSE Bankex (up 1.12%), outperformed the Sensex. The S&P BSE Energy index (up 0.45%), the S&P BSE FMCG index (up 0.36%), the S&P BSE Power index (up 0.31%), the S&P BSE Utilities index (up 0.30%) and the S&P BSE Oil & Gas index (down 0.25%), underperformed the Sensex.

Banks stocks advanced. Among public sector banks, IDBI Bank (up 6.31%), Indian Bank (up 3.18%), State Bank of India (up 2.97%), Canara Bank (up 2.96%), Allahabad Bank (up 2.42%), Andhra Bank (up 2.27%), Syndicate Bank (up 2.19%), Corporation Bank (up 2.12%), Bank of Baroda (up 1.56%), Punjab National Bank (up 1.50%), Union Bank of India (up 1.50%), Bank of India (up 1.21%), United Bank of India (up 0.98%), Bank of Maharashtra (up 0.79%) and Dena Bank (up 0.66%), edged higher. UCO Bank (down 0.17%), Central Bank of India (down 0.52%), Vijaya Bank (down 1.15%) and Punjab & Sind Bank (down 2.01%), edged lower.

Among private banks, City Union Bank (up 3.95%), Axis Bank (up 1.75%), Federal Bank (up 1.39%), Kotak Mahindra Bank (up 1.33%), RBL Bank (up 1.08%), ICICI Bank (up 0.69%), IndusInd Bank (up 0.68%), Yes Bank (up 0.56%) and HDFC Bank (up 0.46%), edged higher.

Pharma stocks advanced. Cipla (up 7.83%), Sun Pharmaceutical Industries (up 6.32%), Dr Reddy's Laboratories (up 3.18%), Wockhardt (up 2.93%), Strides Shasun (up 2.80%), IPCA Laboratories (up 2.59%), Piramal Enterprises (up 2.49%), Divi's Laboratories (up 2.19%), Cadila Healthcare (up 2.13%), Glenmark Pharmaceuticals (up 1.47%), Alkem Laboratories (up 1.41%) and GlaxoSmithKline Pharmaceuticals (up 0.49%), edged higher.

On the macro front, the Reserve Bank of India (RBI), in a notification dated 7 February 2018, announced relief measures for micro, small and medium enterprises (MSMEs) registered under Goods and Services Tax (GST). Presently, banks and non-banking finance companies (NBFCs) in India generally classify a loan account as non-performing asset (NPA) based on 90 day and 120 day delinquency norms, respectively. The formalisation of business through registration under GST had adversely impacted the cash flows of the smaller entities during the transition phase with consequent difficulties in meeting their repayment obligations to banks and NBFCs.

As a measure of support to these entities in their transition to a formalised business environment, it has been decided that the exposure of banks and NBFCs to a borrower classified as MSME under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, shall continue to be classified as a standard asset in the books of banks and NBFCs, subject to a set of conditions, the central bank said.

#As expected the Indian markets bounced back, after a long hiatus. Nifty did got support around 10400 througout the day. The next targets for the Nifty spot comes around 10630 and 107286 on the upside. However, I feel the action will now be seen in the badly beaten small and mid cap sectors. Remain invested and average wherever necessary; but don't average every scrip.

#NDTV Ltd today hit the BUYER FREEZE in the mid afternoon trade at Rs.45. Yesterday, the traders and investors were suggested a buy on the counter on view of increasing chances of UPA returning  to power in 2019. However, the stock has some resistance around Rs.45-46.5 ranges which it needs to cross with good volume for the next target of Rs.51.

#The stock of 3i Infotech Ltd (Rs.6.35) today moved up with good volume, with rising RSI, indicating further bullishness in the counter. The investors should do well to accumulate the scrip in every decline and buy with long term targets of Rs.50 and Rs.100. You need to just buy and hold, like your fixed deposits. 

#The scrip of HDIL today moved up from the oversold positions with reasonable volume to close just below the resistance zone of Rs.52.60-52.70. The next targets for the scrip are Rs.59 and Rs.65, which it will easily reach during the next few trading sessions. HDIL is not a company but a Real Estate Empire, with a land bank of around 20 crore sq.ft in Mumbai Metropolitan Region, where the land cost is a major part of the total cost of construction. Even if we take a modest value of Rs.1500 per sq.ft of land in MMR, the land bank valuation comes to around Rs.30,000 crore, which will always give some cushion against debt. 

#The share of Urja Global Ltd today hit another lower circuits to close at Rs.7.45 in the BSE. The stock has been hitting the Lower Circuits, since my sell call at around Rs.11.30. I feel any price of this Re.1 face value scrip, above Rs.2-3 is unjustifiable. 

#The stock of GVK Power & Infrastructure Ltd today hit the buyer freeze at Rs.196.50 (on Rs.10 face value), probably due to "Hero Worship" formula, when the company has over the years amassed ~Rs.25,000 crore debt, raising its debt-to-market cap to as high as 13. I am not understanding the reasons to buy this Re.1 face value scrip at around Rs.19.6, when there are 100s of stocks, which  are looking screaming buys. 

In its annual report, the company said it had delayed payment of loan and interest and certain loan accounts have been classified non-performing assets by banks. 

Anyway good luck to those who buys JUNKS at such a high price because a fund manager has bought the same. Will the fund manager tell you when he exits the scrip, distributing the shares of the company on to your hands? 

Did Rakesh Jhunjhunwala ever whisper into your ears......before EXITING the companies like Orchid Chemicals and Pharmaceutical Ltd (now Orchid Pharma Ltd; CMP: Rs.17.85) or Hindustan Oil Exploration Ltd (Rs.121.30)? 

Moreover, the Financial/Business TV  Channels will never inform you why Rakesh Jhunjhunwala's Viceroy Hotels Ltd (Rs.16.15) failed to perform in the bourses, but will generally shout, about his investments in Prakash Industries Ltd (Rs.205.60) or Titan Company Ltd (Rs.800.65)....
This is how the whole system of stock market works, in collusion with media......Huh!! As a parting note, I would  like to point out that: I also recommended Prakash Industries Ltd at around Rs.41-42, but the media will always attribute the gains in the scrip price to RJ only......LOL!!

#My recommended Energy Development Ltd, an Amar Singh-Jaya Prada venture, at around Rs,17-18, today hit the upper circuits at around Rs.24.55.  The immediate targets for the scrip are Rs.27-29, which I feel will be achieved very shortly. 

#I have few scrips which could give good returns over a period. These are the scrips which are infront of your eyes but you might not find the reasons to invest in them, till they start hitting the upper circuits, due to hidden valuations. If anyone is willing to invest around Rs.3-5 lakhs in those scrips please do let me know. You will get the 1st mover advantage and naturally the gains will be higher. This is different from the Premium Service, which I run..

Also, small investors/traders can join my information service at a discounted rate or my associated brokerage house: BMA Wealth Creators Ltd to stay ahead of others. Exiting a stock is always very difficult than buying a scrip and hence expert opinion matters.

~~with inputs from Capital Market - Live News..

My latest Sunday Report (24th March, 2008), Recommended scrip Electrotherm Ltd (BSE Code-->Rs.375) moved up today with good volume in late trade. The Scrip rose more than 12% today. Yesterday it was mentioned as a must buy scrip in the Sunday Report: As mentioned in the Sunday Report, the market rallied more than 250 points to close at an important level. I am again back with a baaaaaaaaang!!!! The markets also somewhat rhymed with what Mr.Sudarshan Sukhani said some days back and today: Has Nifty Given a breakout today from .......levels? Which scrips are looking attractive again and when will the rally start in the mid and small cap space? My earlier Recommended KEW Industries Ltd, Southern Ispat Ltd, RDB Industries Ltd, Yes Bank, D S Kulkarni Developers Ltd, Rajoo Engineers Ltd, Modern Steel Ltd did well today: So what will be the trading strategies for tomorrow and the rest of the week?? This section is for the Paid Group Members: Please take Part in the voting, in this blog, which will some represent a section of the prevailing sentiments of the market participants. To vote please scroll down the page, as there are quite a few VOTING MACHINES, to record your opionions: Blue chips edged higher in volatile trading session today. After an initial surge, the market had pared gains in afternoon trade. The S&P CNX Nifty, had in fact, slipped into the red. A strong rebound was witnessed in late trade. Positive cues from the global markets supported the domestic bourses which opened after a long weekend. However, the market breadth was weak indicating that confidence is low among investors. Mid-cap and small-cap stocks slumped, which was clearly reflected in the poor market breadth. Banking and IT stocks were in demand. Metal and power stocks declined. 22 out of 30 stocks from the Sensex pack ended in green. The market sentiment remained edgy on reports Monsoon Capital LLC, a $1.20 billion hedge fund firm run by Gautam Prakash, has been hit hard by a slump in Indian stocks this year. The news may trigger more redemptions from hedge funds with higher exposure to India, reports suggest. Asian markets which opened before Indian market, were mostly in the green. European markets were closed on account of Easter holiday. The 30-share BSE Sensex rose 294.57 points or 1.96% at 15,289.40. The index gained 356.48 points at the session’s high of 15,351.31, hit at the fag end of the trading session. Sensex rose 61.26 points at the day's low of 15,056.09 hit in the afternoon trade. The broader CNX S&P Nifty rose 35.9 points or 0.78% at 4609.85. The BSE Mid-cap index fell 2.66% at 5,805.53. The BSE small-cap index was down 3.77% at 6,950.12. Both these indices underperformed the Sensex. As per provisional data, foreign funds bought shares worth a net Rs 376.13 crore today. Domestic funds sold shares worth a net Rs 253.27 crore. The market breadth, which was negative in early trade, turned poor as the session progressed. On BSE, 535 stocks advanced, 2149 declined and 33 stocks were unchanged. Concerns of marked-to-market losses for firms on their foreign exchange derivatives exposure, meltdown in global markets, lower-than-expected industrial production data for January 2008 and a surge in inflation created havoc on the bourses recently. Hike in short-term capital gains tax and alteration of tax treatment of the Securities Transaction Tax (STT) in Union Budget 2008-09 announced on 29 February 2008 had dented the sentiment earlier. The BSE clocked a turnover of Rs 4663 crore today as against Rs 5,796.91 crore on Wednesday, 19 March 2008. Nifty March 2008 futures were at 4642, at a premium of 32.15 points as compared to spot closing of 4609.85. The NSE futures & options (F&O) segment turnover was Rs 42,610.26 crore, which was lower than Rs 46,365.04 crore on Wednesday, 19 March 2008. India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.93% to Rs 2200.80. India’s largest private sector bank by assets ICICI Bank rose 4.98% to Rs 804.55. India’s largest engineering and construction firm by revenue Larsen & Toubro gained 3.46% to Rs 2937.20. Among the other Sensex gainers were, Housing Development Finance Corporation (up 7.73% at Rs 2384.05), Wipro (up 5.88% at Rs 398.75), HDFC Bank (up 5.31% at Rs 1337.45), Hindustan Unilever (up 4.31% at Rs 235), and ACC (up 3.76% at 805.15). Among the Sensex losers were, Tata Steel (down 7.04% at Rs 592.45), Reliance Energy (down 4.61% at Rs 1150.90), DLF (down 4% at Rs 598.10), Jaiprakash Associates (down 1.81% at Rs 200.30), Maruti Suzuki (down 1.34% at Rs 811.70), and Ranbaxy Laboratories (down 0.88% at Rs 446.25). The BSE Bankex outperformed the Sensex, rising 3.32% to 7,744.35. Punjab National Bank (up 5.58% at Rs 485.45), Centurion Bank of Punjab (up 4.46% at Rs 42.15), Yes Bank (up 4.08% at Rs 142.75), Bank of India (up 2.83% at Rs 245.05) and State Bank of India (up 2.67% at Rs 1,645.65), gained. The BSE IT index underperformed the Sensex, rising 1.55% to 3,421.96. HCL Technologies (up 7.45% at 274.05), TCS (up 1.66% at Rs 823.45), Infosys Technologies (up 1.45% at Rs 1,361.35), and Satyam Computer (up 0.29% at Rs 391.10), gained. The BSE Metal index underperformed the Sensex, falling 5.27% to 12,787.61. Gujarat NRE Coke (down 16.95% at Rs 103.40), JSW Steel (down 11.98% at Rs 788.25), Welspun Gujarat Stahl Rohren (down 7.71% at Rs 294.30), Jindal Stainless (down 7.44% at Rs 133.15), Sesa Goa (down 4.40% at Rs 3,021.80), and Sterlite Industries (down 4.12% at Rs 680.25), slumped. The BSE Realty index underperformed the Sensex, falling 3.97% to 6,806.18. Puravankara Projects (down 16.20% at Rs 171.45), Parsvnath Developers (down 9.69% at Rs 173.85), Omaxe (down 5.59% at Rs 182.35), Indiabulls Real Estate (down 4.57% at Rs 423), Mahindra Lifespace Developers (down 1.63% at Rs 377) and Sobha Developers (down 1.25% at Rs 597.05), fell. Among the side counters, IOL Netcom (down 20% at Rs 155.65), Indusfila (down 20% at Rs 90.25), Orbit Corporation (down 20% at Rs 321.82), Brigade Enterprise (down 16.07% at Rs 154.30), Aban Offshore (down 16% at Rs 2,642.10), Bajaj Hindustan (down 10.85% at Rs 166.40), tumbled. India's second biggest real estate developer by market capitalisation Unitech declined 5.24% to Rs 253.30, off session’s high of Rs 279.70. Lehman Brothers and Deutsche Bank are reportedly set to make a combined investment of $500 million in Unitech's special purpose vehicle formed to execute two commercial projects in Mumbai. Refrigerant gases maker Gujarat Fluorochemicals jumped 3.35% to Rs 185 after its board approved the proposal to buyback equity at a ceiling price of Rs 300 per share. Drug maker Sun Pharmaceutical Industries gained 1.48% to Rs 1279.10 after it received an approval from US Food and Drug Administration for the abbreviated new drug application to market a generic of Parke Davis's Cerebyx, fosphenytoin sodium injection. Textiles firm S.Kumars Nationwide slumped 26.74% to 83.70 after 7.10 lakh shares changed hands on BSE at Rs 110 and 5.02 lakh shares changed hands on NSE at Rs 88.50 each. Sujana Towers, manufacturer of galvanized steel towers, slumped 9.33% at Rs 86.05 after the firm said Morgan Stanley & Co International Mauritius acquired a further 3.85% stake in the company to raise its total holding to 7.04%. FMCG products maker Dabur Pharma rose 15.76% to Rs 56.50 after 3.75 million shares or 2.4% of the company's equity capital changed hands on the NSE in a block deal at Rs 50.75 each. Edible oils maker KS Oils fell 2.83% to Rs 61.90 even as some reports suggested that the firm sees revenue rising to Rs 3200 crore and expects net profit of Rs 200 crore in full year (FY) 2009 due to a rise in demand, following import duty cuts in mustard oil. Indian government on Thursday, 20 March 2008 announced a cut in import duty on some edible oils to improve supplies and rein in inflation that touched a 10-month high. Most Asian markets were trading higher today, 24 March 2008. Key indices in Taiwan, Singapore, and South Korea were up 0.58% to 3.99%. However, China’s Shanghai Composite index was down 4.49% and Japan’s Nikkei was down 0.02%. Stock market in Hong Kong was closed for public holiday. US stocks soared on Thursday, 20 March 2008 as declining commodity prices helped offset worries about the economic slowdown. Financial stocks rallied on analyst expectations that more mortgage purchases by Fannie Mae and Freddie Mac may help stabilize the home loan market. The Dow Jones industrial average jumped 261.66 points, or 2.16%, to 12,361.32. The Standard & Poor's 500 index added 31.09 points, or 2.39%, to 1,329.51, and the Nasdaq Composite index advanced 48.15 points, or 2.18%, to 2,258.11. As per data released on Thursday, 20 March 2008, India's inflation surged to over 11-month high of 5.92% for the week ended 8 March 2008 as essential items like fruits and vegetables and pulses as well as some manufactured items turned expensive. [From Internet]

WINNING STROKES: THINK DIFFERENT:

The History of Sugar

Prakash Industries Ltd moved to Rs.56.20 before cooling down a  bit and closed at Rs.55.50, up 2.97%. The shares of the company are grossly undervalued and it is only time that it will move up.

Shree Renuka Sugars Ltd surprisingly came down today, reflecting probably the broader sentiment in the markets. However, though some analysts have expressed their apprehensions regarding sugar counters, I am bullish on them for the short term considering the festive season (where its demands increases) has already kicked off and also due to the fact that, Cane growers in Brazil’s Center South, the world’s largest producing region, will reap the smallest crop in four years after plants were hurt by dryness and frost. Earlier, similar problems occurred in Australia too which I mentioned in my earlier write-up. Hence, the price of sugar is expected to increase going forward. Moreover, Shree Renuka has  co-generation (Carbon Credits) and Rupee DE-valuation story to boot. Hence, investors are suggested to buy this A-group company, in the sugar space and keep holding for some time, to get good and steady returns on your investments.

Shree Renuka Sugars

Key benchmark indices snapped three-day winning streak as world stocks fell after a meeting of European finance ministers over the weekend made no progress toward resolving the euro zone debt crisis. The cost of insuring Greek government debt against default rose, with the market showing investors nearly 100% certain Greece will eventually default. The BSE Sensex was down 188.48 points or 1.11%, up close to 35 points from the day's low and off close to 120 points from the day's high. The market breadth was negative. Index heavyweight Reliance Industries (RIL) edged lower.

The market has been volatile off late. From a recent low of 16,467.44 on 13 September 2011, the Sensex had jumped 466.39 points or 2.83% in three trading sessions to one-week closing high of 16,933.83 on Friday, 16 September 2011. Before the three-day rebound, euro-zone debt worries had pulled Indian shares lower. From a 5-week closing high of 17,165.54 on 8 September 2011, the Sensex had tumbled 698.10 points or 4.06% in three trading sessions to 2-week closing low of 16,467.44 on 13 September 2011. Earlier, the market had staged a strong rebound after a steep setback in August 2011.

Coming back to today's trade, capital goods stocks fell on worries higher interest rates could affect capital expenditure plans of Indian firms, with power-equipment major Bhel hitting 52-week low. Interest rate sensitive banking stocks fell on worries that higher lending rates will crimp loan growth. Metal stocks fell as LMEX, a gauge of six metals traded on the London Metal Exchange dropped 0.39% on Friday, 16 September 2011. FMCG stocks too, declined. Some consumer durables stocks bucked the weak market. Cement stocks also edged higher.

The market opened on a weak note as euro-zone debt worries resurfaced. The market weakened once again after recovering from intraday lows in morning trade. The market moved in a tight range in the negative terrain in mid-morning trade. The market extended losses to hit fresh intraday low in early afternoon trade. Weakness prevailed in afternoon trade as European stocks opened on a weak note. Weakness continued in mid-afternoon trade. The market trimmed losses after hitting fresh intraday low in late trade.

With Q2 September 2011 drawing towards a close, focus may shift to expectations of Q2 results of individual firms. Advance tax payments made by the top 100 companies based in the country's financial capital Mumbai reportedly rose 18% in Q2 September 2011. The tax collections are not uniformly good or bad across companies and sectors, except for oil marketing companies, which saw a decline in levies paid.

The BSE Sensex was down 188.48 points or 1.11% to settle at 16,745.35, its lowest closing level since 14 September 2011. The index fell 67.90 points at the day's high of 16,865.93 in early trade. The index declined 224.42 points at the day's low of 16,709.41 in mid-afternoon trade.

The S&P CNX Nifty was down 52.30 points or 1.03% to 5,031.95, its lowest closing level since 14 September 2011. The Nifty hit a low of 5,019.25 in intraday trade. The Nifty hit a high of 5,068.40 in intraday trade.

The BSE Mid-Cap index fell 0.29% and the BSE Small-Cap index declined 0.02%. Both these indices outperformed the Sensex.

BSE clocked turnover of Rs 2279 crore, lower than Rs 2786.52 crore on Friday, 16 September 2011.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,434 shares fell and 1,350 shares rose. A total of 103 shares remained unchanged. The breadth had become positive from negative in early trade.

Among the 30-share Sensex pack, 21 fell and the rest rose.

Cement stocks edged higher on hopes of improved demand as monsoon nears end. ACC, Ambuja Cements, UltraTech Cement, Jaiprakash Associates and India Cements rose by between 0.17% to 2.96%.

Index heavyweight Reliance Industries (RIL) fell 0.8%, with the stock falling for the second straight day. The company's advance tax payment reportedly jumped 67% to about Rs 2000 crore in Q2 September 2011 over Q2 September 2010.

BP PLC will be able to start work on jointly developing RIL's oil and gas blocks in India only after a revised production-sharing contract is drafted and signed by the stakeholders, the upstream regulator said on Thursday, 15 September 2011. The amendment to the production-sharing contract is yet to be signed. BP will come in only when the amendment is signed, S.K. Srivastava, Director at the Directorate General of Hydrocarbons, told reporters on the sidelines of an industry conference. In the production-sharing contract, the explorers agree with the government to bear risks, production and development costs in return for a share of production.

Srivastava said that RIL is yet to approach the regulator with a new draft of the contract. RIL on 30 August 2011 closed a deal with BP to sell a 30% stake in its 21 oil and gas exploration blocks in India to the UK-based explorer.

RIL had, recently denied inflating costs on its D6 gas field in the Krishna-Godavari (KG) basin. RIL made the clarification after CAG said in its final report submitted to the parliament on Thursday, 8 September 2011, that RIL initially estimated capital expenditure of D-1 and D-3 gas discovery at $2.4 billion, which it later revised to $8.8 billion.

Oil exploration stocks fell as crude oil prices declined. Cairn India dropped 0.38%. India's second biggest oil and gas exploration firm by revenue, Oil India, fell 2.84%. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms.

State-run ONGC declined 1.95% on profit taking. The stock surged 5.61% on Friday, 16 September 2011, boosted by a hike in petrol price announced by state-run oil marketing companies (PSU OMCs). The petrol price hike could help reduce the subsidy sharing burden of the state-run oil exploration major which is required to share under-recoveries at PSU OMCs on selling diesel and cooking fuels at government-set prices.

Meanwhile, the government on Friday, 16 September 2011, deferred the about Rs 11000-crore follow-on public offer (FPO) of ONGC. ONGC said in a statement that the government has decided not to proceed with the FPO of ONGC as per the timeline mentioned in the Red Herring Prospectus dated 5 September 2011 and it will evaluate its decision in relation to the FPO in due course. The FPO was scheduled to open on 20 September 2011 and close on 23 September 2011.

PSU OMCs declined as a ministerial panel's meeting to consider limiting the sale of cooking-gas cylinders at subsidized rates which was scheduled on Friday, 16 September 2011, was deferred due to opposition from allies of the Congress-led United Progressive Alliance government. Indian Oil Corporation and HPCL fell by between 0.35% to 1.7%. BPCL rose 0.48%, reversing initial losses. PSU OMCs sell cooking gas, diesel and kerosene at state-set discounted prices to help the government control inflation. They get cash subsidy from the government to help trim their losses.

PSU OMCs are currently losing Rs 267 a cylinder. The government is considering to restrict the number of subsidized gas cylinders to help retailers cut their losses and reduce the government's subsidy burden. It is also working on a proposal to directly transfer fuel subsidies to the poor.

IT stocks were mixed on a weak rupee against the dollar. The Indian rupee fell more than 1% on Monday, 19 September 2011, as mounting fears Europe's sovereign debt troubles could trigger a full blown banking crisis curtailed risk appetite and sent shares and the euro lower. A weak rupee boosts revenue of IT companies in rupee terms as the sector derives a lion's share of revenue from exports.

HCL Technologies rose 0.95% after company during market hours today announced that its business transformation division HCL AXON has undertaken a major implementation of the SAP® Customer Relationship Management (SAP CRM) application and an upgrade of SAP® for Utilities solutions at Sacramento Municipal Utility District (SMUD), a community-owned electric utility serving more than 1.4 million people. This is the 25th utility transformation program HCL has executed during the years in North America.

India's largest software services exporter Wipro rose 0.52%. The company recently entered into a strategic alliance with Saab AB to develop and market protective software for the Swedish major's Land Electronic Defence System (LEDS). LEDS provides protection to light and medium combat vehicles and main battle tanks against rocket-propelled grenades, anti-tank missiles, mortars and artillery shells.

India's largest software services exporter TCS declined 1.11%. The company said during market hours today that Deutsche Bank has selected the company as a strategic partner for its production management transformation initiative within their capital market business unit. TCS's advance tax payment reportedly jumped 111.11% to Rs 570 crore in Q2 September 2011 over Q2 September 2010.

India's second largest software services exporter Infosys declined 1.33%. The company is reportedly close to acquiring the health care business of Thomson Reuters in a $700-750 million deal. If the deal goes through, it will be the largest acquisition by Infosys. Thomson Reuters' health care business provides data, analytics and performance benchmarking solutions and services to companies, government agencies and health care professionals.

Sun Pharmaceutical Industries fell 2.65%. The company said before market hours today, 19 September 2011, that one of its US units has successfully resolved an issue arising from a US Food and Drug Administration (USFDA) warning to its manufacturing facility in Cranbury, New Jersey, over regulatory violations. Sun Pharmaceutical Industries Inc.'s facility has been found to have an acceptable regulatory status after the FDA re-inspected it in June, the Indian generic drug maker said in a statement.

The FDA had issued a warning letter to the facility on 25 August 2010, after identifying violations of good manufacturing practice regulations during an inspection. Sun Pharma also said that Caraco, a wholly owned subsidiary of company, continues to work with consultants to resolve the issues raised by the USFDA at its Detroit plant.

Tata Motors, India's biggest auto maker by revenue, fell 0.22%, reversing initial gains. The stock had jumped 7.02% on Friday. Tata Motors today, 19 September 2011, said its Jaguar Land Rover luxury car unit will invest 355 million British pounds to build a new engine plant in the UK. The facility will produce a new range of four-cylinder gasoline and diesel engines with lower emissions that will power the future of Jaguar Land Rover, the Mumbai-based auto maker said. The plant at i54 South Staffordshire, a business park near Wolverhampton in the UK's Midlands, is expected to create up to 750 direct jobs at Jaguar Land Rover and thousands more indirectly, it said.

Tata Motors' global vehicle sales in August rose 3% from a year earlier to 87,459 units. Sales at its UK-based luxury car unit, Jaguar Land Rover, jumped 31% to 21,242 vehicles during the month. Sales of Land Rover sport-utility vehicles surged 43% to 17,833 units, but Jaguar sedan sales fell 10% to 3,409 autos. Global sales of all trucks and buses rose 17% to 48,023 units, the company said. Tata Motors' advance tax payment reportedly remained unchanged at Rs 90 crore in Q2 September 2011 over Q2 September 2010.

Maruti Suzuki India jumped 3.09%, on reports production at its two plants in Haryana resumed on Sunday, 18 September 2011. It may be recalled that strike by about 1,900 workers at Suzuki Powertrain India and Suzuki Castings led to a shortage of critical parts, including diesel engines and transmissions for some gasoline car models of Maruti which had forced Maruti to halt production on Friday, 16 September 2011, at its factories in Manesar and Gurgaon in Haryana.

The workers at Suzuki Powertrain and Suzuki Castings had gone on strike to express solidarity with workers at Maruti's Manesar plant. Maruti on 29 August asked 950 regular workers in Manesar to sign a good conduct bond before they could enter the factory after the company said it discovered serious and deliberate quality problems and suspended and dismissed 21 employees.

Mahindra & Mahindra rose 0.25%. The company's board last week approved divestment of up to 8.09% stake in its subsidiary Mahindra Holidays & Resorts India (MHRIL) in one or more tranches at the best available price through a recognised stock exchange by June 2013 to enable increase of MHRIL's public shareholding and free float in the stock market. M&M currently holds 83.09% of the equity of MHRIL. Shares of MHRIL jumped 4.97%. M&M's advance tax payment rose 6.25% to Rs 170 crore in Q2 September 2011 over Q2 September 2010.

Shares of bike makers were mixed amid fears the latest petrol price hike may adversely impact sales during the festive season. India's second largest two wheeler maker by sales Bajaj Auto fell 1.48% to Rs 1601.50. The stock had hit a record peak of Rs 1694.90 in intraday trade on 6 September 2011. The company's advance tax payment reportedly rose 4.17% to Rs 250 crore in Q2 September 2011 over Q2 September 2010. The company's total sales rose 16% to a record 3.82 lakh units in August 2011 over August 2010. Motorcycle sales jumped 17% to a record 3.38 lakh units in August 2011 over August 2010.

India's largest two-wheeler maker by sales Hero MotoCorp rose 0.39% to Rs 2210. The stock had scaled a record high of Rs 2,231.70 in intraday trade on 9 September 2011. The company's sales rose 19% to 5.03 lakh units in August 2011 over August 2010.

The timing of the latest petrol price hike has been bad for two-wheeler makers. The festive season started early this month and it will last until Diwali, the festival of lights, at the end of October 2011. Sales normally pick up during the festive season every year.

Realty stocks fell on worries higher interest rates could dent demand for residential and commercial properties. Purchases of both residential and commercial property are largely driven by finance. DLF, Indiabulls Real Estate, Phoenix Mills and Ackruti City shed by between 1.26% to 3.3%.

Capital goods stocks fell on worries higher interest rates could affect capital expenditure plans of Indian firms. BEML, Praj Industries, Crompton Greaves, Punj Lloyd and Siemens fell by between 0.91% to 2.38%.

Bhel declined 1.73% to Rs 1657.35. The stock hit 52-week low of Rs 1651.10 today.

Larsen & Toubro dropped 3.02%. The company announced during market hours today that it has bagged orders worth Rs 1015 crore in building and factories segment in Q2 September 2011.

ABB fell 2.06% after the company's Managing Director Bazmi Husain said high interest rates have led to several customers putting off large capital investments, slowing down new business. This, coupled with rising raw material costs, has led to pressure on its profit margins, Husain said. He said, however, that the company is confident of continued growth in its India business on the back of its strong order book.

Interest rate sensitive banking stocks declined on worries that higher lending rates will crimp loan growth. India's largest private sector bank by net profit ICICI Bank declined 2.42%. ICICI Bank's advance tax payment reportedly remained unchanged at Rs 600 crore in Q2 September 2011 over Q2 September 2010.

India's largest bank by branch network and net profit State Bank of India (SBI) fell 1.49% to Rs 1916.60. The stock had hit a 52-week low of Rs 1,812.90 in intraday trade on 14 September 2011. SBI's advance tax payment reportedly fell 10% at Rs 1700 crore in Q2 September 2011 over Q2 September 2010.

Punjab National Bank, Bank of India and Bank of Baroda dropped by between 0.52% to 3.43%.

India's second largest private sector bank by net profit HDFC Bank rose 0.24% to Rs 484.80, off the day's low of Rs 477.10. HDFC Bank's advance tax payment reportedly rose 33% to Rs 800 crore in Q2 September 2011 over Q2 September 2010.

Axis Bank fell 2.2%. The private sector bank said on Friday, 16 September 2011, that its board has considered and unanimously approved the transfer of the financial services business of Enam Securities whereby the Enam Financial Services business will be demerged from Enam into the bank under a Scheme of Arrangement. Enam shareholders will get 5.7 equity shares of Axis Bank for every one equity share of Enam. Upon completion aforesaid transaction, the bank will sell the Enam Financial Services business to ASSL, its wholly owned subsidiary. ASSL will pay the bank a cash consideration of approximately Rs 274 crore, which represents the book value of the Enam Financial Services Business, Axis Bank said. A total of 1.37 crore shares of Axis Bank will be issued to Enam shareholders.

Metal stocks fell as LMEX, a gauge of six metals traded on the London Metal Exchange dropped 0.39% on Friday, 16 September 2011. Sterlite Industries, Sesa Goa, Hindustan Zinc, Bhushan Steel, Sail, Hindalco Industries and Nalco shed by between 0.69% to 3.49%.

Tata Steel fell 1.27%. The company's advance tax payment reportedly rose 19.23% to Rs 620 crore in Q2 September 2011 over Q2 September 2010.

Tata Steel, last week, announced a major five-year improvement programme at its IJmuiden steelworks in the Netherlands. The five-year programme with investment of euro 800 million is designed to sustain the plant's potential to be a world-class steelmaker, Tata Steel said in a statement. After the investment, the plant's annual capacity will rise to 7.7 million liquid steel by 2015-16, from current 7.2 million.

The total number of full-time jobs will reduce by 1,000 over the next four years. There will also be investment of staff training and development and enable the plant to meet the demand of the current complex market situation, the company statement said. The IJmuiden works enjoys the great advantages of an ideal location with its own port for bringing in raw materials and close proximity to the market, excellent lay-out, an ability to be flexible in the use of raw materials, and a high level of technology and craftsmanship, said Dr Karl-Ulrich Köhler, MD & CEO, Tata Steel Europe.

JSW Steel rose 0.64%, with the stock gaining for the second straight day. The company, last week, said that a cut in its steel production is expected to continue till the resumption of iron ore supplies from e-auction by 'Monitoring Committee' in terms of a Supreme Court order.

Some consumer durables stocks bucked the weak market. Blue Star, Videocon Industries, Gitanjali Gems and Titan Industries shed by between 0.51% to 1.27%.

FMCG stocks declined in a weak market. Marico, Hindustan Unilever, ITC and United Spirits dropped by 0.39% to 2.93%.

India Securities clocked highest volume of 4.78 crore shares on BSE. SRS (1.06 crore shares), GTL (70.58 lakh shares), GVK Power & Infrastructure (65.35 lakh shares) and Unitech (51.82 lakh shares) were the other volume toppers in that order.

India Securities clocked highest turnover of Rs 274.98 crore on BSE. SBI (Rs 80.70 crore), Delta Corp (Rs 51.59 crore), GTL (Rs 48.52 crore) and Larsen & Toubro (Rs 47.85 crore) were the other turnover toppers in that order.

A recent India investor survey report prepared by J P Morgan Asset Management-ValueNotes expects benchmark Sensex to trade between 20,000 and 22,000 by end of this year. According to the report, the investment sentiment is affected by concerns such as recession, frequent hikes in interest rates and volatility in the domestic investment environment. Despite witnessing a 4.2-point decline from the last quarter, the 'Retail Investor Confidence Index' ranks the highest at 137.5 points. Retail investors' activity in mutual funds has improved 11% since the last quarter, the survey said. The survey was carried out from 22 July to 4 August 2011.

The survey also shows that investors are becoming cautious as preserving capital emerges as a popular investment strategy among retail investors (40%). However, 40% of investors, in comparison to 57% in March 2011, are expected to turn somewhat aggressive about their investment strategy over the coming six months.

At the time of announcing a 25 basis points rate hike, the Reserve Bank of India (RBI) on Friday, 16 September 2011, said that it is imperative to persist with the current anti-inflationary stance because a premature change in the policy stance could harden inflationary expectations, thereby diluting the impact of past policy actions.

In recent weeks, as a result of global risk aversion, the rupee has depreciated, which may have adverse implications for inflation, the RBI said. Inflation remains high, generalised and much above the comfort zone of the Reserve Bank of India, it said. The central bank said that Friday (16 September 2011)'s repo rate hike is expected to reinforce the impact of past policy actions to contain inflation and anchor inflationary expectations. As monetary policy operates with a lag, the cumulative impact of policy actions should now be increasingly felt in further moderation in demand and reversal of the inflation trajectory towards the later part of 2011-12, RBI said.

Going forward, the stance of the monetary will be influenced by signs of downward movement in the inflation trajectory, to which the moderation in demand is expected to contribute, and the implications of global developments, RBI said.

Although India's exports have performed extremely well in the recent period, this trend is unlikely to be sustained in the face of weakening global demand, RBI said. This, combined with the slowing down of domestic demand, to which the monetary policy stance is also contributing, suggests that risks to the growth projection for 2011-12 made in the July 2011 monetary policy review are on the downside, RBI said.

Corporate margins in Q1 June 2011 moderated across several sectors compared to levels in Q4 March 2011. However, barring a few sectors, significant pass-through of rising input costs is still visible, RBI said.

The central government's fiscal imbalances widened during April-July of 2011 reflecting, primarily, the impact of decline in revenue receipts coupled with pressures from non-plan revenue expenditures on account of higher petroleum and fertiliser subsidies. Fiscal deficit at 55.4% of the budget estimates in the first four months of the current fiscal was significantly higher than that of 42.5% during the corresponding period last year (when adjusted for the more than budgeted spectrum proceeds).

Reacting to the RBI's latest rate hike, Navneet Munot, Chief Investment Office (CIO), SBI Mutual Fund said, The lag effect of past actions and global environment would moderate the domestic demand and inflation trajectory going forward, in our view. Our sense is that RBI is likely to take a pause after today's rate action. This should be viewed positively by bond and equity markets. Sentiments in equity markets should improve on evident signs of peaking of rate cycle. Markets would closely watch global developments and movement in commodity prices.

Bank of America Merrill Lynch said in a research note after the RBI's latest hike that it continues to believe that the Indian rate cycle is peaking with growth likely to slip below 7.5% during the second half of 2011 and inflation set to come off to 7% in Q1 2012. The RBI will pause after a final 25 basis points (bps) policy rate hike on 25 October 2011 and cut rates by 100 bps from April 2012 onwards, it said.

Reacting to RBI's latest rate hike, Dhawal Dalal, Senior Vice President and Head Fixed Income, DSP Black Rock Mutual Fund, said the RBI is likely to increase the repo rate by another 25 bps at its next policy review on 25 October 2011. We expect the RBI to pay a lot more attention to the inflation trajectory going forward with focus on core inflation. The RBI has not been unduly worried about the prospective slowdown in the GDP numbers and is confident of the resilient nature of economy, Dalal said.

Economic Affairs Secretary R. Gopalan on Thursday, 15 September 2011, said that the government has raised the limit of overseas borrowing for companies to $750 million from $500 million. Indian companies can also now raise loans up to $1 billion in Chinese yuan, Mr. Gopalan added. The relaxation of overseas borrowing rules will help Indian companies tap cheaper cash abroad amid rising credit costs in the local market. US and European countries have near-zero interest rates in a bid to support weak economic growth.

The government on Thursday, 15 September 2011, cleared the ambitious $90-billion Delhi-Mumbai industrial corridor. The Delihi-Mumbai industrial corridor project will set up nine mega industrial zones of about 200-250 square kilometre (km) along with a 1,500 km high speed freight line connecting the two cities. It will include three ports and six airports, as well as a six-lane intersection-free expressway connecting the two cities and a 4,000 megawatts (MW) power plant and also set up seven new cities.

The public private partnership (PPP) approval committee approved projects worth Rs 18000 crore on Thursday, 15 September 2011, that include a housing project for para-military forces and a road project among others.

Finance Minister Pranab Mukherjee on Tuesday, 13 September 2011, said central banks in emerging economies have been forced to raise interest rates repeatedly as they battle high inflation, exposing them to volatile capital flows. An issue of immediate concern for emerging economies is managing large capital flows, he said. Large and volatile capital flows to emerging markets can be destabilizing as they lead to high exchange rate volatility and in some cases make it incumbent to maintain high levels of foreign exchange reserves as an insurance against sudden and large-scale flight of international capital.

Given the lackluster initial FII response to the government's sharply raising the ceiling of FII investment in long-term corporate bonds issued by the companies in the infrastructure sector in March 2011, the government on Monday, 12 September 2011, further relaxed the norms on FII investment in such bonds. The Finance Ministry said in a statement that FIIs can now invest in long-term infra bonds, subject a ceiling of $5 billion limit, which have an initial maturity of five years or more at the time of issue and residual maturity of one year at the time of first purchase by FIIs. These investments are subject to a lock-in period of one year. FIIs can trade amongst themselves in these bonds but cannot sell to domestic investors during the lock-in period of one year.

FIIs can also now invest, subject to a ceiling of $17 billion, in long-term infra bonds which have an initial maturity of five years or more at the time of issue and residual maturity of three years at the time of first purchase by FIIs. These investments are subject to a lock-in period of three years. During the three-year lock-in period, FIIs can trade amongst themselves but cannot sell to domestic investors. The Securities & Exchange Board of India (Sebi) is expected to issue notifications incorporating these changes in the scheme by 15 October 2011.

Sebi had in early August 2011 allowed Qualified Foreign Investors (QFIs) to subscribe to Mutual Fund Debt Schemes which invest in the infrastructure sector subject to a total overall ceiling of $3 billion within the total ceiling of $25 billion.

Planning Commission deputy chairman Montek Singh Ahluwalia on Monday, 12 September 2011, said at a conference that private funding has to make up half of the infrastructure investment of $1 trillion planned for in the five years during 2012-2017. Prime Minister Manmohan Singh said at the conference that to overcome the fund crunch for infrastructure projects, the government has proposed to set up a $11 billion fund to help finance infrastructure projects. We have also constituted a high-level committee to suggest measures necessary for financing our ambitious program in infrastructure development, Mr. Singh said.

Prolonged rainfall in the latter part of the season has helped ease concerns that this year's monsoon might drop below the long-term average after a brief lull in July, when the country usually receives a third of its monsoon rains. The first advance estimates for the 2011-12 kharif season point to a record production of rice, oilseeds and cotton, while the output of pulses may decline.

A good monsoon season can typically boost rural farm incomes and have an impact on the wider economy through increased spending on consumer goods as well as reduced prices of food items. But food prices may not necessarily fall if delayed and excess rains in some regions affect crop yields.

Moody's Investors Services affirmed its Baa3 rating for India's foreign currency government debt and its Ba1 rating for local currency debt in an annual credit analysis released early this month. The ratings firm assigned a positive outlook to India's rupee-denominated bonds, saying it will consider a unified Baa3 rating for all bonds if India improves its fiscal position and its commitment to strengthening the domestic market. The outlook for foreign-currency debt is stable.

The report was upbeat about India's ability to weather a global economic downturn. While it is not immune to an international growth slowdown, the strength of domestic demand and the diversity of the economy provides a buffer against a deceleration in globally exposed sectors, the report said. It noted that India's foreign currency reserves equal four times its foreign debt obligations.

A debt-to-GDP ratio of 71% is cause for concern, as interest on this debt eats up 25% of India's revenues annually. However, Moody's expects that continued GDP growth and incremental fiscal consolidation efforts will continue to lower the government debt/GDP ratio, the report said.

European stock markets traded lower on Monday, 19 September 2011, led by banks like Royal Bank of Scotland Group PLC and Societe General SA, as worries about euro-zone debt issues took center stage following an inconclusive weekend meeting of European Union finance ministers. Key benchmark indices in UK, France and Germany were down by 2% to 2.87%.

European stocks had risen last week amid optimism going into the EU finance ministers meeting in Poland. But that gathering failed to announce any new measures to combat the region's debt crisis, with fears that Greece won't get its next tranche of bailout funds again on the rise. Without more money, Greece is expected to run out of funds next month, according to reports.

The Greece cabinet of Prime Minister George Papandreou met on Sunday to discuss growing concerns over the nation's ability to meet fiscal targets. International lenders are withholding the next disbursement of aid to Greece until the government comes up with a credible plan to meet its deficit-reduction commitments.

In a sharply worded statement released after the cabinet meeting Greece Finance Minister Evangelos Venizelos said the government takes full responsibility for the implementation of the agreed program, but also warned that Greece shouldn't be the scapegoat used by European institutions to hide their inability to manage the euro-zone crisis. Venizelos is due to hold a teleconference today, 19 September 2011, with representatives from the the European Commission, the International Monetary Fund and the European Central Bank.

The cost of insuring European bank and sovereign government debt against default rose on Monday, 19 September 2011, after the meeting of European finance ministers over the weekend made no progress toward resolving the euro zone's debt crisis. The cost of insuring Greek government debt against default rose, with the market showing investors nearly 100% certain Greece will eventually default.

In Germany, the party of German Chancellor Angela Merkel on Sunday, 18 September 2011, reportedly suffered another regional election loss, this time in Berlin.

Asian stocks fell on Monday, 19 September 2011, as concerns about a Greek default came back to the fore amid indications that Europe is losing patience with the country's efforts to cut its debt pile. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, South Korea and Taiwan fell by between 1.04% to 2.76%. Japanese equity markets were closed for a holiday.

Trading in US index futures indicated that the Dow could fall 137 points at the opening bell on Monday, 19 September 2011.

US stocks rose for a fifth day in a row on Friday and the S&P 500 scored its best week since early July on signs euro zone leaders were acting together to limit any damage from its sovereign debt crisis. US economic data showed consumer sentiment inched up in early September, but Americans were gloomy about the future. A gauge of expectations fell to its lowest level since 1980.

The Federal Open Market Committee (FOMC) is scheduled to undertake a two-day policy review on US interest rates on 20 and 21 September 2011. It remains to be seen if the Federal Reserve announces further measures to revive the US economy. Among the options that the Fed may consider include another round of quantitative easing or QE3, the Operation Twist which is the purchase of long-term verses selling short-term bonds so as to lower long-term yields, and lowering the rate on excess reserves held by banks at the Fed in order to increase the monetary aggregates.