Brokerage Report: With Edition:

Cement price set to decline:

The first sign of oversupply in India's Southern region and its impact on cement prices post incremental capacity addition of 20mn tones during FY09 and Q1FY10 in the region, have been witnessed.

On pan India basis, industry have added around 30mn tones in FY09 and 15mn tones in Q1FY10 and is expected to further add 30mn tones in H2FY10 which will exert downward pressure on cement prices, most likely from Q4FY10.

While we can expect overall capacity utilization for the industry to drop from 95% in FY07 to 75% by FY10 and cement price would correct around 4% in Q4FY10 and 7% in FY11.

We can thus expect the impending oversupply coupled with declining trend in cement price would have a negative effect on the stocks, and hence we maintain our underperformer rating for the sector.

Over-supply in southern region: Cement industry has increased the price by around Rs. 20/bag across regions except for southern region where price has gone down by around Rs 15-20/bag in last six months. This could be the first sign of impact of oversupply (20mn tones of incremental capacity in last fifteen months) in the region which has resulted into cement price decline despite demand growth at moderate rate.

We can also expect the situation of southern India would spread out to across region in next six months and would lead to sharp price correction.

The additional capacity to bring down utilization to 75% in FY10 and 74% in FY11, can be expected an a sharp correction in cement prices is inevitable. Apart from that focus towards retaining market share would also fuel the price war in the industry. It can be safely assumed that cement prices could fall around 11% over the next two years due to a glut of supply and lower capacity utilization.

We have factored a 4% drop in Q4FY10, followed by a 7% decline in FY11 in our earning model.

Input cost has bottomed out: Most of the key raw material for cement production have bottomed out and have started moving upward (~ coal up by around 20%, crude oil price increased by 80%, baltic dry index up by ~50%). Apart from that government has recently increased royalty on limestone by Rs. 18/tone which has increased the cost of cement production by Rs. 22/tones. Coal India has proposed to increase the coal price by 11%, which will increase the cost of production by around Rs. 26/tones.

On one side cost of production is increasing and the other side cement price has started going down which will be a double whammy for the decline in sectors profitability.

This will also going to have some NEGATIVE effect on companies which have some bearing on the cement industry, like Premier Explosives Ltd, AIA Engineering Ltd, etc.

WINNING STROKES: THINK DIFFERENT:

[Updated]

The morning call on U B Engineering Ltd, given yesterday, first to the Paid Groups and then to the Free Groups (Those who are there on my Yahoo Messenger list), hit the buyer freeze in the late trade with good volume. This happened when the Sensex tanked by more than 600 points.The company is becoming debt free in this quarter and it came out with outstanding results in Q1FY10. The company would benefit immensely from the fall in the price of metals. It is from the high pedigree, Vijay Mallya Pack (U B Group). The stock should be crossing Rs.100 within the next few weeks.

Premier Explosives Ltd came out of the circuits after profit booking was advised for the Paid Groups. The company though is doing well, but is unable to clear the zone of Rs.42-Rs.45, since a long time--hence the sell call given. Yesterday's initial price movement was more or less due to operator based activities.

There is no stopping of Sicagen India Ltd as the stock hit another buyer freeze. The company came out with superb results for the Q1FY10. Also, almost all the wings of the company are doing excellently well. With the expected EPS of Rs.5--Rs.6, in FY10, the stock has a long way to go.

Those who are holding my recommended Vision Corporation Ltd (BSE Code: 531668) should not worry too much. The company came out with superb set of numbers for the Q1FY10, though the topline was a little subdued. The net profit of the company for Q1FY10, came out to be Rs.4.02 Cr as against Rs.64.05 lakhs in the same period previous year. The EPS of the company for Q1FY10 came out to be Rs.2.01 as against Rs.0.32 in the same period previous year. This miracle happened when there is a world-wide slowdown. Moreover, the company is also venturing into television broadcasting, which would give it a solid footing going forward. The company in a statement sent to BSE said, "It has also been decided how to make the Company a fully integrated entertainment Company having the plus points that the Company has its own contents to run on the channel having more than 200 films, 1000 music albums and various other serials in different languages and now very soon Company is going to start its own channel and the board has decided to set up an fully well equipped studio to make the Company a total integrated Company." For more on the company please visit: http://www.visioncorpltd.com/.

Axtel Industries Ltd (BSE Code: 523850) recommended in the Sunday Report to the Paid Groups became only buyer (don't get deceived by seeing flat closing....what I meant is that: was there were no sellers after it made a volume of 3400). The stock also clocked good volumes. AXTEL Industries Ltd is the leading supplier of process engineering equipment to the food, pharmaceutical and chemical industries. The company's fundamentals look good to me at the CMP of Rs.9.05, especially considering the case that the company is an indirect play both on the food processing and pharmaceutical industies The EPS of the company for FY09 was Rs.1.92 against Rs.1.78 in FY08. The June, 2009 quarter results were also better considering Y-o-Y figures. For more on the company you can visit: http://www.axtelindia.com

So how will the markets behave today and what should be done as regards investments in other scrips??!! Where are the next supports for the Nifty??!! Will the markets recover in this week??!! Why did the market fell yesterday???!! These portions are only for the PAID GROUPS.

WINNING STROKES: THINK DIFFERENT:

[Updated]

My recommended CHD Developers Ltd (BSE Code: 526917) hit the buyer freeze. It launched a project named as CHD Lifestyle Independent Floors as part of its mega integrated township project CHD City at Karnal. Lifestyle Floors are "Stylish, Comfortable and Affordable" and further step to show Company's commitment to provide affordable housing.

Sicagen India Ltd hit the buyer freeeze in the afternoon trade before cooling down a bit. The company came out with superb bottomline on Q-o-Q basis, beating market expectations. The future results will be good as the sector in which the company is performing (Auto and Construction or Building Materials), has started to look up. The company's drum making venture will also give good returns. A stock which will give you multi-bagger returns going forward.

My recommended Varun Industries Ltd have become more than double in just 3 months time frame. Yesterday, also it hit the buyer freeze.

XL Telecom and Energy, Ennore Coke Ltd and Glory Polyfilms Ltd are expected to come up with results today. If the results are good then all these stocks could start hitting the buyer freezes. In case of Ennore Coke Ltd, the topline would be good but I am a little apprehensive about the bottomline.

Phoenix International Ltd hit the buyer freeze before cooling down a bit. The company has leased its 5 lakh sq. ft of land to a reputed company and hence now there is no problem of bounced cheques. Besides the fact that its group company Focus Energy Ltd is starting gas production from FY10, augurs well for the company. The company has huge land holding in Chennai (Madras)which will be used a shoe park.

Northgate Technologies Ltd, Shreyas Shipping and Logistics Ltd (CMP: Rs.31.15), Sunil High Tech (CMP: Rs.150.95), etc should do well going forward and hence try to accumulate them on declines for 12-18 months time frame. Sunil High Tech Engineers Ltd was earlier recommended around Rs.55-56 ranges and asked to accumulate when it was going down.

Northgate Technologies Ltd is the owner of http://www.bharatstudent.com/, which is ranked 3rd (third) after http://www.orkut.com/ and http://www.facebook.com/ among the Indians. For more on the company please visit: http://www.northgatetech.com.

My old favourite Premier Explosives Ltd (CMP: Rs.36) came out with superb results for the Q1FY10. The total income of the company for Q1FY10 came out to be Rs.23.45 Cr as against Rs.15.14 Cr in Q1FY09. The net profit of the company for Q1FY10 came out to be whooping, Rs.1.42 Cr as against Rs.64.8 lakhs in the same period previous year. The EPS of the company for Q1FY10 alone is Rs.1.75. Moreover while the operating profit margin remained flat, the net profit margin increased in Q1FY10 to 6.16% as against 4.28% in the same period previous year. The cash EPS is now a whooping Rs.2.13 as against Rs..1.16 in the same period previous year. The company's overseas ventures are going great guns . The company get substantial amount of revenues from the Cement Companies and since the cement sector is looking great Premier Explosives Ltd is expected to cross Rs.100 in the near future; more so because its equity capital is only Rs.8.12 Cr. The company is also into defence deals and has good order book position as of 30th June, 2009. The allocation of more funds in the defence budget (Union Budget, FY10) is positive for the company.

For more on Premier Explosives Ltd, please visit: http://www.pelgel.com

Ritesh Properties and Industries Ltd is now into real estate sector apart from being a garment exporter (Textile sector). Recently the company has marked its foray in realty sector by entering into a joint venture agreement with developers Ansal Properties and Infrastructure (API) for developing a premium housing project and a business park in Ludhiana. The land is located at a prime location on Ludhiana-Chandigarh state highway. The total projected revenue will be about Rs.800 crs. The project, christened as Hampton Court spreads across 42 acres on the Ludhiana-Chandigarh road, well within the municipal limits of Ludhiana city. Initial work on the project has already started. A multi-bagger in the making. For more on it please visit: http://www.riteshindustries.us

Strong Q1 June 2009 earnings from State Bank of India (SBI) and Mahindra & Mahindra (M&M) and firm global stocks helped the key benchmark indices snap a three day losing streak. A recovery in Chinese shares after Wednesday's (29 July 2009)'s 5% slide helped soothe investors' nerves. The BSE 30-share Sensex jumped 214.50 points or 1.41%, up close to 320 points from the day's low. The Sensex attained its highest closing since 11 June 2009. IT, realty, banking and FMCG stocks led gains. But index heavyweight Reliance Industries (RIL) slipped. The market breadth was strong.

As per the provisional figures on BSE, foreign funds bought shares worth Rs 366.81 crore and domestic funds sold shares worth Rs 286.67 crore today, 30 July 2009.

Volatility was high as traders rolled over positions from July 2009 contracts to August 2009 contracts in the futures & options segment ahead of the expiry of July 2009 contracts today, 30 July 2009. Rollover of Nifty positions from July 2009 contracts to August 2009 contracts was about 60% at the end of Wednesday's (29 July 2009) trading. Rollover in Mini Nifty futures was about 43%.

The key benchmark indices slipped in early trade tracking losses in Asian stocks. After an initial slide the market moved to positive zone for a brief period before slipping into the red again. It recovered sharply in mid-morning trade tracking recovery in Chinese stocks. The market extended gains in early afternoon trade as the latest data showed inflation remained in the negative territory for a seventh week in a row. The market pared gains after surging to a fresh intraday high in mid-afternoon trade. The market extended gains in late trade on strong Q1 results from SBI and M&M.

The market today snapped last three days' losing streak. From a recent high of 15,378.96 on 24 July 2009, the Sensex had lost 205.50 points or 1.33% to 15,173.46 on Wednesday, 29 July 2009.

The wholesale price index (WPI) fell 1.54% in 12 months to 18 July 2009 compared to previous week's fall of 1.17% the government data showed at 11:50 IST. But the government revised upwards inflation for the week ended 23 May 2009 to 1.34% from 0.48%.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1438 companies rose 25.8% to Rs 67307 crore on 5.6% fall in sales to Rs 622730 crore in Q1 June 2009 over Q1 June 2008.

Finance Minister Pranab Mukherjee told the parliament on Wednesday that economic growth was showing certain signs of improvement, and trade minister Anand Sharma said efforts were being made to reduce the trade deficit. The economy grew by 6.7% in 2008/09 (April/March), and Mukherjee said India will able to maintain that level of growth. On Tuesday, 28 July 2009, the Reserve Bank of India (RBI) projected growth in 2009/10 at 6% with an upward bias.

A weak monsoon remains a cause of concern. India's monsoon rains were 18% below normal in the week to 29 July 2009, having been above normal in the preceding two weeks. Total rainfall since the beginning of June was 19% below average, the India Meteorological Department said on Thursday. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Meanwhile, foreign direct investments (FDI) in India declined 43% to $2.2 billion in May 2009 over May 2008.

European shares rose on Thursday, as investors digested a raft of earnings, which continue to be mostly positive. Key benchmark indices in France, Germany and UK were up by between 0.53% to 1.2%.

Asian stocks rose, recovering from early losses. China's Shanghai Composite ended 1.69% higher, recovering from an initial fall. The index had declined 5% on Wednesday amid concern the government will curb inflows into a market that had more than doubled from last year's low.

Meanwhile, a statement on the People's Bank of China Web site late Wednesday cited a senior official as saying the central bank will emphasize market-based forces, rather than administrative controls in setting credit growth. The statement suggested the government isn't planning to set loan curbs at this time.

Key benchmark indices in Hong Kong, Singapore, South Korea and rose by between 0.49% to 1.23%.

Japan's Nikkei rose 0.51% in volatile trade as Japanese manufacturers increased production for a fourth month in June 2009, capping the fastest quarterly output expansion in more than half a century and helping the economy rebound from its deepest post-war recession.

Trading in US index futures indicated Dow could rise 66 points at the opening bell today, 30 July 2009.

US stocks fell on Wednesday, 29 July 2009 as investors worried that China might be ready to hit the brakes on lending, a move that could curb demand and hinder the global economic recovery.

The Dow Jones Industrial Average was down 26 points, or 0.3%, to 9,070.72. The S&P 500 index fell 4.47 points, or 0.5%, to 975.15, while the Nasdaq Composite Index was down 7.75 points, or 0.4%, to 1,967.76.

In economic news, orders for durable goods fell 2.5% in June 2009, much more than expected. Meanwhile mortgage applications fell for the first time in four weeks.

The BSE 30-share Sensex rose 214.50 points or 1.41% to 15,387.96, its highest closing since 11 June 2009. The Sensex rose 236.45 points at the day's high of 15,409.91 in late trade. The Sensex lost 107.98 points at the day's low of 15,065.48 in early trade.

The S&P CNX Nifty was up 57.95 points or 1.28% to 4,571.45. Nifty August 2009 futures were at 4578, at a premium of 6.55 points as compared to the spot closing of 4571.45. Turnover in NSE's futures & options (F&O) was Rs 94,477.38 crore, much lower than Rs 1,16,508.34 crore on Wednesday, 29 July 2009. BSE clocked a turnover of Rs 6,027 crore, lower than Rs 7,534.13 crore on Wednesday, 29 July 2009.

The Sensex is up 5,740.65 points or 59.5% in calendar year 2009 as on 30 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,227.56 points or 88.56% as on 30 July 2009.

Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. On BSE, 1,499 shares advanced as compared with 1,167 that declined. A total of 85 shares remained unchanged.

Among the 30-member Sensex pack, 23 rose while the rest declined.

The BSE Mid-Cap index was up 0.54% and the BSE Small-Cap index was up 0.8%. Both the indices underperformed Sensex.

The BSE IT index (up 2.8%), the BSE FMCG index (up 2.7%), the BSE Bankex (up 2.2%), the BSE TECk index (up 1.57%), outperformed the Sensex.

The BSE Oil & Gas index (down 0.19%), the BSE Power index (down 0.03%), the BSE Metal index (down 0.02%), the BSE Healthcare index (up 0.09%), the BSE Consumer Durables index (up 0.13%), the BSE Capital Goods index (up 0.2%), the BSE Auto index (up 0.86%), the BSE PSU index (up 0.89%), the BSE Realty index (up 1.3%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.37% to Rs 1,899.90 after Anil Ambani said he will approach the Supreme Court on Thursday, 30 July 2009, seeking a final hearing on the two-year-old gas supply dispute on 1 September 2009. According to him the gas supply dispute between RIL and Reliance Natural Resources (RNRL) vitally affects public interest. The matter concerns power projects of national importance representing a capacity of 12,000 megawatt (MW) and an investment of over Rs 50,000 crore and affects the interests of over 10 million shareholders, he said.

The Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.

RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.

In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row.

Oil exploration pivotals were mixed after crude futures tumbled almost 6% Wednesday as US oil inventories unexpectedly rose, raising fresh concerns of weak demand. India's largest exploration firm by sales ONGC rose 0.12%. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.

Cairn India fell 0.58% as consolidated net profit fell 67.2% to Rs 45.44 crore on 49.2% fall in sales to Rs 204.95 crore in Q2 June 2009 over Q2 June 2008. The company declared the results after trading hours on Wednesday.

PSU OMCs rose on fall in crude oil prices. BPCL and HPCL rose by between 4.3% to 8.01%. Lower oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Indian Oil Corporation rose 4.08% as its net profit jumped 787.15% to Rs 3682.83 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during market hours today.

Auto stocks rose after posting strong Q1 June 2009 results in the past few days. India's largest truck market by sales Tata Motors rose 0.44%. The company on Tuesday, 28 July 2009 reported 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008.

India's largest tractor maker by sales Mahindra & Mahindra rose 1.22% after net profit rose 151.63% to Rs 400.80 crore on 28.04 % rise in total income to Rs 426.61 crore in Q1 June 2009 over Q1 June 2008. The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings and Finance and Punjab Tractors which were merged with the company. Hence, the figures of the current quarter are not comparable with those of the previous year's quarter. The results hit the market just a while back.

India's top small car maker by sales Maruti Suzuki India was flat at Rs 1,397.70.

India's largest bike maker by sales Hero Honda Motors was flat at Rs 1,639.60. The company posted 83% jump in net profit to Rs 500 crore on 34% rise in total revenue to Rs 3865 crore in Q1 June 2009 over Q1 June 2008. The company announced the Q1 result after market hours on Wednesday, 29 July 2009.

Rate sensitive realty shares reversed early losses as inflation remained in the negative zone. Investors are concerned that the central bank may start reversing its interest-rate cuts in early 2010 as food and energy prices fan inflation. Rising interest rates may dent property demand as most of the commercial and housing deals are driven by finance.

India's largest real estate developer by sales DLF rose 1.02% ahead of its Q1 June 2009 result today. Unitech, Indiabulls Real Estate, Phoenix Mills and Omaxe rose by between 0.95% to 3.31%.

IT stocks rose on weak rupee. Better-than-expected Q1 June 2009 results by IT pivotals Infosys, Wipro and TCS also underpinned sentiment for IT stocks. TCS, Infosys and Wipro rose by between 1.34% to 6.04%.

The rupee recovered against the dollar after hitting a one-week low in early trade. The partially convertible rupee was hovering at 48.33/48.34, firmer than Wednesday's close of 48.42/48.43. A weak rupee boosts revenues of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

Patni Computer Systems rose 12.55% after the company said it will scout for acquisitions in the range of $50 million-$200 million in Europe and the Asia-Pacific to help lower its dependence on the US market.

Bank stocks rose on strong Q1 results from State Bank of India, India's biggest commercial bank in terms of branch network. State Bank of India (SBI) rose 4.37% as its net profit jumped 42.02% to Rs 2330.37 crore on 29.86% rise in total income to Rs 21041.51 crore in Q1 June 2009 over Q1 June 2008. The results hit the market during trading hours today.

India's second largest private sector bank in terms of operating income HDFC Bank rose 2.95%. India's largest private sector bank in terms of operating income ICICI Bank rose 3.14%.

Some FMCG stocks rose on improvement in India's annual monsoon in July 2009 after a dry spell in June 2009. FMCG firms derive substantial revenue from rural sector. Britannia Industries, ITC, Dabur India, Nestle India, United Spirits, Tata Tea, rose by between 0.65% to 2.79%.

India's largest FMCG company by sales Hindustan Unilever rose 5.15%. The company reported a 2.68% fall in net profit to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared during trade hours on Tuesday, 28 July 2009. India's largest private sector steel maker by sales Tata Steel rose 2.53% even as net profit fell 47% to Rs 789.83 crore on a 8.16% decline in total income to Rs 5661.89 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on Wednesday, 29 July 2009.

India's second largest steel maker by sales Steel Authority of India rose 3.26% even as net profit fell 27.74% to Rs 1326.09 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during trading hours today.

India's largest copper market by sales Sterlite Industries rose 0.89%. The company's net profit fell 68.5% to Rs 112.70 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on 29 July 2009.

Construction stocks rose on government's thrust on infrastructure sector in Union Budget 2009-2010. Era Infra Engineering, Gayatri Projects and IVRCL Infrastructure & Projects rose by between 1.56% to 3.14%.

But capital goods stocks fell on profit taking after a recent surge triggered by government's thrust on the infrastructure sector in Union budget 2009-2010. Bharat Heavy Electricals, Punj Lloyd, ABB, Praj Industries, Siemens fell by between 0.06% to 1.86%.

Cement stocks rose on posting good Q1 June 2009 results. Grasim Industries, ACC, Ambuja Cements and Ultratech Cements rose by between 0.78% to 4.1%. Some power stocks rose after a strong response to the Adani Power initial public offer which opened for subscription on Tuesday, 28 July 2009. NTPC, Power Grid Corporation Of India, Torrent Power rose by between 1.45% to 2.96%. Reliance Infrastructure rose 1.8% ahead of its Q1 June 2009 result today.

Sun Pharmaceuticals Industries tumbled 3.62% after net profit fell 56.7% to Rs 121.51 crore on a 39.5% decline in sales to Rs 405.88 crore in Q1 June 2009 over Q1 June 2008. The company announced the results during trading hours on Wednesday, 29 July 2009.

Other healthcare stocks, Cadila HealthCare, Piramal HealthCare, Lupin fell by between 0.02% to 3.7%.

Unitech clocked highest volume of 1.54 crore shares on BSE. Suzlon Energy (1.47 crore shares), Mahindra Satyam (1.14 crore shares), Ispat Industries (1.1 crore shares) and Ruchi Soya Industries (1.08 crore shares) were the other volume toppers in that order.

Tata Steel clocked the highest turnover of Rs 255.38 crore on BSE. Housing Development & Infrastructure (Rs 185.26 crore), DLF (Rs 171.59 crore), Suzlon Energy (Rs 145.94 crore) and State Bank of India (Rs 144.07 crore) were the other turnover toppers in that order.

India commits Rs 180k cr to Nuclear Trade:

Good News for Premier Explosives Ltd, Astra Micro Ltd, Rolta Ltd, Areva T & D Ltd, etc.

Jyoti Malhotra

India is committing Rs 1,80,000 crore for the production of 30,000 Mw of nuclear power by three countries — Russia, France and the US — a significant bait that New Delhi has cast in the interests of gaining access to sensitive Enrichment and Reprocessing technologies (ENR) and stabilising its fears over energy insecurity.

Meanwhile, the government is aiming to hand over its separation plan of safeguarded nuclear facilities to the International Atomic Energy Agency towards the end of this month, to assuage US concerns that these plants will only use sensitive ENR technologies to reprocess spent fuel from these plants.

After a five-day visit to India, US Secretary of State Hillary Clinton is flying to Thailand to participate in meetings with the Association of the South-East Asian Nations (Asean), with Prime Minister Manmohan Singh’s commitment to buy 10,000 Mw of civil nuclear power from US companies ringing in her ears.

While the two sites in Gujarat and Andhra Pradesh that are being allocated to the US companies have not been named, they are expected to be based in Saurashtra in Gujarat and either Kowada or Pulivendula in Andhra Pradesh.

Meanwhile, according to a Nikkei newspaper report from Tokyo, Westinghouse Electric Co, owned by Toshiba Corp, and the joint venture GE-Hitachi, are likely to win the US contracts.

Since the US companies are significantly Japanese-owned, and the Japanese public remains enormously sensitive to nuclear matters, the issue of reprocessing spent fuel will have to be addressed before the US-Japanese companies can set up shop in India.

India’s civil nuclear market was thrown open after the Nuclear Suppliers Group (NSG) gave India a “clean exemption” to conduct nuclear trade worldwide last September. But despite a G-8 statement in Italy last week preventing countries who have not signed the Nuclear Non-Proliferation Treaty (NPT) — like India — from accessing sensitive ENR technologies, Finance Minister Pranab Mukherjee stated that India was not unduly concerned since it was going ahead with separate agreements with countries like France and Russia. So far, India has committed to buy 10,000 Mw each from India, Russia and France and hopes that the nuclear reactors will materialise in the next 25 years.

Besides the deals with Russia and France, framework nuclear agreements with Canada and the UK are on the cards. A pact with Kazakshtan, on the supply of nuclear fuel and technology was signed when Kazakh president Nursultan Nazarbayev came to Delhi as chief guest for the Republic Day celebrations.

All three nuclear trade pacts, including the one with the US, have varying degrees of private participation, with the state-owned Nuclear Power Corporation of India (NPCIL) being the end-user in each case.

The Indo-Russian inter-governmental agreement, signed when Russian president Dmitry Medvedev came to Delhi in December 2008, commits Atomstroi, a fully state-owned undertaking, to manufacture four reactors of 1,200 Mw each (in addition to the two that were already being built) in Kudankulam, Tamil Nadu.

The Indo-Russian agreement also talks of a “future site” for additional reactors that has not been identified so far.

With France, Areva, a French company with an overall government stake of about 84 per cent, will first build two European Pressurised Reactors nuclear reactors of 1,650 Mw each, going up to six reactors, at Jaitapur in Maharashtra. Areva has also promised a lifetime of fuel supply for the reactors.

Areva chairman Arthur de Montalembert, in an email, refused to answer questions relating to income, profit and revenue, citing a confidentiality clause with NPCIL.

In February, India also promised to buy 2,000 tonnes of nuclear fuel worth $700 million from Russia to power its fuel-starved indigenous reactors, of which the first instalment has arrived last week. Last December, India also committed to buy 300 tonnes of nuclear fuel from France.

WINNING STROKES: THINK DIFFERENT:

Crest Animation Studios Ltd hits the 2nd consecutive buyer freeze after it was recommended both to the Paid Group and also in this Blog. The stock which was once available around Rs.250 plus is now available at one-tenth that price.

Refex Refrigerants Ltd would get benefit of the monopoly/ future generation products, products that are used in Summer Seasons. Moreover, a positive thrust on Refrigeration related companies in the railway budget and a Carbon Credits story would further add colour to the stock. The stock is heading for Rs.55-60, in the next few months. Please visit: http://www.refex.co.in/ for more on the company.

My recommended Ritesh Properties and Industries Ltd (BSE Code: 527407, CMP: Rs.16.5), which is into Real Estate apart from Garment Export, hit the 2nd consecutive buyer freeze. Recently the company has marked its foray in realty sector by entering into a joint venture agreement with developers Ansal Properties and Infrastructure (API) for developing a premium housing project and a business park in Ludhiana. The land is located at a prime location on Ludhiana-Chandigarh state highway. The total projected revenue will be about Rs.800 Cr. The project, christened as Hampton Court spreads across 42 acres on the Ludhiana-Chandigarh road, well within the municipal limits of Ludhiana city. The company last year launched its retail brand called "Femella", a women ethnic wear and inaugurated its 1st store in Gurgaon and 4th in the NCR region. Inauguration of the first "Femella" store in Gurgaon was in sync with "Femella's" aggressive retail expansion plans across the country. The company is planning to make operational total of 100, "Femella" Exclusive Brand Outlets in the next few months. "Femella" plans to take this tally to over 500 (five hundred) across the length and breadth of India, in the next 5 years time frame. In order to strengthen its overseas retail operations, RPIL has acquired a major sports brand in the US, Catalina Bay. This brand acquisition is helping the company in marketing its apparel in the US market. RPIL is marketing corporate casuals in the US, and is getting higher margins on account of elimination of distributors and wholesalers. This stock will also give massive returns going forward.

Shreyas Shipping and Logistics Ltd will get benefit from from the recent provisions of the budget. Also, this company has an interesting story on coastal shipping where the government has made a comprehensive plan to boost the sector. I had earlier put up an article on coastal shipping on this blog; you can search the blog for the same. In a similar fashion Glory Polyfilms Ltd (BSE Code: 532857) could also be accumulated at the CMP of Rs.21.25 for some good targets in the days to come. The company has completed the 1st phase of expansion and the next phase is about to be completed in by December, 2009. The company will install 3-layer machine, in this month.

Ennore Coke Ltd hit its 2nd consecutive buyer freeze after it was recommended in the Sunday Report to the Paid Groups. All eyes of the investors are on the Q1FY10 results. The company is producing coke from a number of manufacturing centres including the the recently inaugurated Haldia Plant. The company has also purchased a number of overseas coal mines.

Prajay Engineers Syndicate Ltd hit the buyer freeze before cooling down a bit. The company would well in the days to come. The company has huge land holdings and also it is coming up with 5-star hotel. It is already having a 3 star hotel and a resort. The stock would also give massive returns going forward.

CHD Developers Ltd could be accumulated at the CMP of Rs.4.81 for a target of Rs.9-10 in the 3 to 4 months time frame. The company is into real estate sector. CHD Developers Ltd has recently launched a project named as CHD Lifestyle Independent Floors as part of its mega integrated township project CHD City at Karnal. Lifestyle Floors are "Stylish, Comfortable and Affordable" and further step to show Companies commitment to provide affordable housing. This stock is earlier gave good return to the shareholders. The market cap of the company is only Rs.46.64 Cr. The stock is near its 52-week low price of Rs.3.25 and hence has minimum downside.

Paid Members were asked to accumulate Northgate Technologies Ltd today at Rs.37.80, the stock hit the upper freeze. Social Media India Ltd ('SMIL') India based step down wholly owned subsidiary of Northgate Technologies Ltd has formed partnership with Jawaharlal Nehru Technological University, Kakinada, ('JNTU K') Andhra Pradesh, India. The Company has over recent months received a number of approaches from interested parties in relation to the leading Indian student Social Media Portal - "Bharatstudent.com" and world's leading video/images/audio/document sharing portal- "Ziddu.com".The company's share is moving toward Rs.51--Rs.55 mark before moving up further. The stock of the company which was once looking cheap at Rs.1500 is now now available at disgusting price of Rs.37.70.

Those who have bought Atlanta Ltd and Entegra Ltd could book some profits at the current price and again wait for the dips to enter the scrips. Entegra Ltd is trading near its 52-week high price and hence fresh investment at this stage could be a bit dicy.

Sicagen India Ltd hit the buyer freeze after the morning mail to the Paid and then to the Free Group, SumanSpeaks. Sicagen India Ltd will get benefit from the rural Focus of the government, increase in infrastructure spending, new drum making venture, etc. The selling of commercial vehicles is directly dependent on the rural economy as most of the fuits, vegetables, pulses, grain, live stock, etc, come from the rural India. Moreover, in the Union Budget the government has decided to cut excise duty on petrol-run Lorries/Truck/Truck-Chassis to 8% from 20%. Specific component of excise duty applicable to large cars/utility vehicles of engine capacity 2000 cc and above has also been reduced from Rs. 20,000 per vehicle to Rs.15,000 per vehicle. Also an increase in defence spend to Rs.1.4 trillion will further increase the sell of commercial vehicles to the defence forces. Increase in defence spend is not only positive for defence related companies like Premier Explosives or Astra Micro Ltd or Rolta Ltd, but also positive for the companies which sells commercial vehicles directly or indirectly, like Tata Motors, Sicagen India Ltd, Ashok Leyland, etc.

One of my old favourites in the telecom sector would be recommended tomorrow to the Paid Groups as the company according to my sources is expected to come up with good results for the Q1FY10. One of the projects of the company is about to go on stream.

More coming...............Keep watch......

WINNING STROKES: Think different:

Galada Power and Telecom Ltd recommended to the Paid Group in the morning hit the buyer freeze. There is a great story brewing in the company.

Alchemist Realty Ltd recommended in the morning as a substitute for earlier recommended Vipul Ltd hit the buyer freeze.

VLS Finance Ltd hits another buyer freeze in the opening trade. The stock is nowhere near the target price.

Premier Explosives Ltd recommended in the morning to the Paid Groups hit the buyer freeze. My sources in Bombay are still of the view that it could cross Rs.55-56, within a very short time.

Ram Informatics Ltd in which Kajal Devgan holds position hit the buyer freeze in the opening trade. The stock is expected to do well going forward.

SAAG RR Infra Ltd (BSE Code: 531374) which has a massive order book position hit the buyer freeze in the initial trade. The stock would benefit immensely from the government's thrust on infrastructure development.

One can buy Atlanta Ltd (BSE Code: 532759) at Rs.95--Rs.98, for a target of Rs.175--200. It is a construction company (mostly BOT projects) and is having land in Thane. All time high for the scrip is around Rs.1400, but the stock is now available at around Rs.94--96, at time when the government is going for massive construction programme.

Sanguine Media Services Ltd hit another buyer freeze with 30 lakhs pending order. Also my recommended, Kohinoor Broadcasting Corporation Ltd and Fame India Ltd hit respective buyer freezes.

Prajay Engineers Syndicate Ltd hit another buyer freeze in the opening trade. There is no stopping of the company. The company is into construction and hospitality business.

More coming.................

WINNING STROKES: THINK DIFFERENT:

Vipul Ltd recommended in the morning to the Paid Group (Premium and Quickie) through SMS hits the buyer freeze. The company is into construction business.

CHD Developers Ltd recommended in the morning to the Paid Groups through SMS hits the buyer freeze. The stock was later recommended to the Free Groups as well. The company is also into real estate development.

Some good news is coming in case of Glory Polyfilms Ltd. Hence those who have already bought the scrip earlier are requested to keep holding or add on declines. The fact that the scrip is near its 52-week low price, makes it look attractive.

BSEL Infrastructure Realty Ltd recommended around Rs.11, is almost near its first target. Its overseas operations are doing well.

Northgate Technologies Ltd recommended yesterday, on some specific news hits the buyer freeze on opening trade. Northgate Technologies Ltd (Northgate) earlier informed the BSE that the Company has over recent months received a number of approaches from interested parties in relation to the leading Indian student Social Media Portal - "Bharatstudent.com" and world's leading video/images/audio/document sharing portal- "Ziddu.com.

Ennore Coke Ltd as mentioned yesterday, hit the buyer freeze in the opening trade. Yesterday, in this blog I mentioned that a Bombay based big bull has suddenly turned bullish on Ennore Coke Ltd and Premier Explosives Ltd.

WINNING STROKES: THINK DIFFERENT:

Northgate Technologies Ltd (BSE Code: 590057) recommended today (28th May, 2009) morning through SMS to Paid Members hit the buyer freeze with huge volume. What is the story in the company??

Sanguine Media Ltd hit 5th consecutive buyer freeze in the opening trade. The stock has a long way to go.

Pyramid Saimira Theatres Ltd hit the buyer freeze before cooling down a bit. The stock which was once trading above Rs.500 is now available at around Rs.25.5.

SAAG RR Infra Ltd recommended yesterday to both the free and Paid Group members hit another buyer freeze today. The stock is still trading at a dirt cheap price.

Prajay Engineers Syndicate Ltd hit another buyer freeze. The company derives a good amount of revenue from the Hospitality Business (it has hotels and resorts) as well. The stock according to many analysts should not trade below Rs.150.

There are rumours floating in the market that suddenly a big bull has turned positive on Ennore Coke Ltd and Premier Explosives Ltd.

Glory Polyfilms Ltd (a Packaging Company) should move up from here, due to some positive development in the company. Can we imagine a life without packaging industry??!! Those who could not buy earlier due to high price, should slowly accumulate the scrip, as the current price cannot be the price of the scrip who came up with an IPO as Rs.60 per share. The stock which was available at around Rs.208, is now available around Rs.27--28.

All major industries create wealth but if there is one industry that plays a unique role by way of both creation of wealth through a wide range of manufacturing activities and also by way of preserving the wealth or value created by many, many other industries, it is packaging (Glory Polyfilms Ltd). Once considered an appendage to the manufacturing value chain and not a core activity, packaging (with its elder cousin, packing) increasingly is acknowledged as a crucial segment of any economy in proportion to the growth -- in terms of both technological sophistication and size -- achieved by that economy. In this respect, its history is similar to that of sectors like climate control/air-conditioning or painting, whose immense value to any economy is understood at the popular level only with the march of time.

Apart from the huge value addition and employment involved in these activities, packaging serves the economy by helping preservation of the quality and lengthening the shelf life of innumerable products - ranging from milk and biscuits, to drugs and medicines, processed and semi-processed foods, fruits and vegetables, edible oils, electronic goods etc, besides domestic appliances and industrial machinery and other hardware needing transportation. With water becoming a consumer product, polymer material-based bottles are becoming a universal presence.Packaging, as distinct from mere “packing”, plays its most visible - and catalytic - role in a modern economy with the widespread adoption of branding of products and development of consumer preferences. To the extent that any consumer product is packaged in a manner that meets the criteria of safety, convenience and attractiveness, it gains market share. In the aggregate, packaging as a sectoral activity boosts consumption and economic growth.

Heightened competition in all product sectors within the country as also the increasing need to look for export markets have contributed to the rising demand for appropriate, and at the same time cost-effective, packaging material and technologies.The packaging industry’s growth has led to greater specialisation and sophistication from the point of view of health (in the case of packaged foods and medicines) and environment-friendliness of packing material. The demands on the packaging industry are challenging, given the increasing environmental awareness among communities. The World Packaging Organisation’ s (WPO) slogan, “Better Quality of Life Through Better Packaging”, sumps up the important place that packaging occupies in a modern economy. .

The morning recommended calls to the Paid Groups, Alps Industries and Pioneer Embroideries Ltd hit the buyer freeze in the opening trade.

Phoenix International Ltd which was recommended repeatedly in this blog, hit 5th consecutive buyer freeze.

MORE COMING...............

WINNING STROKES: THINK DIFFERENT:

Sanguine Media Ltd recommended in the morning first to the Paid Groups and then to the free members who are on my Yahoo Messenger, through SMS hit the buyer freeze. The stock has a long way to go....as you have bought elephant at the price of a goat.....

Buy Visa Steel Ltd at the CMP of Rs.28--Rs.29 for a target of Rs.42. The fact that most of the steel stocks are doing well will augur well for Visa Steel Ltd. Moreover there is some good news on Visa Steel Ltd which is coming within a short time. The stock probably broke out of its current trade pattern....

Asian Oilfields Ltd crossed Rs.56 today with good volume. However, the stock came down as profit booking was advised to the Paid Groups.

Prajay Engineers Syndicate Ltd hit another buyer freeze. There were some good news on the company, recently.

One can also buy Power Grid Ltd at the CMP of Rs.118 for a target of Rs.132 in the next few days.

Southern Online Bio Tech Ltd recommended yesterday to the Paid Group hit the upper circuits also, before cooling down a bit.

Phoenix International Ltd hit another buyer freeze on the news of the rental of its 5 lakhs sq.ft area in North India. There were rumours that the company has struck a deal with a reputed company, from either Tata Group or Reliance Group (Please check ur sources). I have been repeatedly recommending the stock but then some people seems to know everything better than me. This group is now desperately trying to buy this scrip from the market, when it is already htting continuous upper circuits.

Ranklin Solutions Ltd touched Rs.25.90 before cooling down a bit. The stock came down from its all time high of Rs.224.80. There are some good news coming in the counter within a short time. The stock seems to have broken out of its price range.....Ranklin Solutions Ltd earlier informed BSE that the Board of Directors of the Company at its meeting held on March 06, 2009, has proposed to enter into Gold and Jewelery Business by amending the main object clause of Memorandum of Association of the Company subject to the approval of shareholders, Ministry of Corporate Affairs under the Companies Act, 1956 and other requisite authorities. The market cap of Ranklin Solutions Ltd is Rs.12.63 Cr only.

Indowind Energy Ltd could be a multi-bagger going forward, considering the number of projects it is doing at present. One can buy the scrip at Rs.23 for a target of Rs.45--Rs.47 in the short time.

Ennore Coke Ltd hit the buyer freeze in the opening trade. The stock has a long way to go..........

Premier Explosives Ltd hit the upper freeze today with good volumes. The stock was repeatedly recommended to the Paid and Free Groups.

Stratergy to be followed: Buy on all declines.....profit from the selling of large caps are entering in a big way in small and mid cap counters. But how long should it continue (This portion to the Paid Groups Only)...

MORE COMING...........

WINNING STROKES: THINK DIFFERENT:

Valecha Engineering Ltd hit the uppper circuits in the mid-day trade. The stock was recommended last week in this blog.

Pratibha Industries Ltd recommended to the Paid Groups, hit the buyer freeze with good voulume. The company is into unique business space.

Rolta Ltd recommended around Rs.42--43, gave more than 3 times return in less than 60 days. This is a miracle isn' it?? I think both the Free and Paid Members got benefitted.

Phoenix International Ltd hit the buyer freeze today. The stock was recommended repeatedly in the last few months.

Ennore Coke Ltd hit the buyer freeze, as expected on some Superb POSITIVE Development. The related news has been sent to the Paid Groups. But what is the news??

XL Telecom and Energy Ltd hit the 5% buyer freeze. The stock has been hitting the circuits since a long time and time has come to book some profits and keep holding the rest with a SL of Rs.38.8.

Indowind Energy Ltd recommended last month moved up by more than 12% today. The stock has a long way to go, as it has recently completed a project and is going to lauch another project very soon.

Kohinoor Broadcasting Corporation Ltd hit the 7th consecutive buyer freeze. The stock was recommended to the Paid Groups a couple of weeks back.

The Intra-day call on Era Infrastructure Ltd reached its target. The company is expected to do well going forward.

English India Clays Ltd hit the buyer freeze. The company is coming up with a rights issue at Rs.1000 per share.

BSEL Infrastructure Realty Ltd hit 9th consecutive buyer freeze after it was recommended around Rs.9.7--Rs.10, a couple of weeks back.

Pyramid Saimira Theatres Ltd hit 8th consecutive buyer freeze. The stock was strongly recommended around Rs.14--Rs.15, range when most of the analysts were investing canards on the company. This is what happens if you start believing every analyst in the media.There are some terrific news coming on the company..

One can have a look at Dolat Investments Ltd (BSE Code: 505526) at Rs.3.99. The Group's principal activity is to involve in investment and trading activities. Hence the movemement of share market is directly proportional to the share price.

Prajay Engineering Syndicate Ltd hit the 7th consecutive buyer freeze. The stock has still a long way to go. Can you imagine buying this stock at Rs.18--Rs.19, when at one time it was available at around Rs.300 plus.....

Reliance Industrial Infrastrucutre Ltd moved up to Rs.844 before cooling down a bit. According to a noted analyst: "Reliance Group is trying to make Reliance Industrial Infrastrucutre Ltd, a full-fledged gas carrier because the Krishna Godavari (KG) Gas basin production has started. The Reliance Group is the promoter and the Ambani family has set up the gas pipeline from Kakinada to Baruch of 1,400 km with a capital outlay of close to Rs 3,500 crore. That pipeline is not owned by Reliance Industries or by listed company but by a closely held company, so the idea was that this company will get merged or this project will be taken over by Reliance Industrial Infrastructure and becomes a full-fledged gas carrier company.

He further added, the present turnover of Reliance Industrial Infrastructure is at about Rs.60-70 crore on which they make a profit of close to Rs.20 crore. Suppose, once they takeover this project their topline can balloon, maybe to about Rs.600-700 crore with bottomline of about Rs.200-300 crore, so that will give a very good jump.

Presently, 45% stake of Reliance Industrial Infrastructure is held by Reliance Industries Limited suppose there is a chance or if one presumes that this pipeline company gets merged with this Reliance Industrial Infrastructure, this company will come to its size having a very good presence. Then in future because the group is planning to lay pipeline across the country maybe from Kakinada to the Central part of the country to the southern part of the country, as well as the city gas distribution project can be taken up by this Reliance Industrial Infrastructure.

So they will be taking a reasonable size of this company, which translates into a market capitalization of close to USD 2-3 billion and those argument or those expectations seems feasible the gas production started from KG basin, this 1,400 km pipeline can get merged into this company. If that happens then this will vastly change the fundamentals or vastly re-rate the Reliance Industrial Infrastructure from hereon.

And if the plant gets moved on or gets advanced on these fronts the share price can even cross four-digits".

He further states, " Reliance Industrial Infrastrucutre Ltd (RIIL) is is a closely held company, the shareholding is not owned by Reliance Industries or any of the listed arms. For sake of argument if it gets merged and they issue the shares the effective shareholding of the Reliance Industrial Infrastructure post merger will be held by the Ambani family, maybe to the extent of 45% by Reliance Industries which is held by them now. But thereafter the additional or the new shares will get issued to the Ambani family in their personal capacity."

What I feel is that at the current market cap, the stock is still looking cheap considering the potential of the company going forward. Moreover, the fact that it is associated with Reliance Industries Ltd, who is holding 45.43% of the shares of the company, adds further value for the shareholders. Also, Reliance Capital Ltd is also holding position in the company. So both the "Ambani Brother" are having holdings in the company, which further adds to the value.

Now if Anil Bhai Ambani, wants to further increase his stake in the company, from the present paltry state to have further say in the company's activies, I cannot imagine to what price the share can shoot to.....May be Rs.5000 or may be more; considering the topline of Reliance Industrial Infrastructure Ltd of about Rs.600-700 crore and bottomline of about Rs.200-300 crore. ...Therefore, remain invested and keep a strict watch on the counter.

Premier Explosives Ltd recommended to the Paid Groups around Rs.17--Rs.18, a couple of weeks back moved to Rs.23.40 today with good volume. There is a hidden value in the shares of the company even at this price.

Vikash Metal and Power Ltd hit the 12th consecutive buyer freeze after it was recommended to the Paid Groups. There is now a power story in the company including a carbon credit story.

Tata Steel Recommended to the Paid Groups, around Rs.150--Rs.160, moved to Rs.297, today giving more than 60% return in less than 30 days.

How will the markets behave in future and what are the stocks to be purchased....these are only for the Paid Groups. Upto what level the Nifty will move in the next few trading sessions??

WINNING STROKES: THINK DIFFERENT:

Marathon Nextgen Realty Ltd (BSE Code: 503101, CMP: Rs.116.45), recommended in the morning to the Paid Groups at Rs.116.45, hit the buyer freeze in the early trade.

Havells India Ltd, moved up to Rs.157 today with good volumes. The following message is sent to Paid Groups in the morning: "HAVELLS INDIA has bagged $200 million export order from the West European countries to supply motors and compact fluorescent lamps over a period of five years."

Akruti City Ltd, which was touted as a real estate play tanked 55.06% after the expiry of F & O. The following message was sent to the Paid Groups today, "Don't Buy Akruti City Ltd. If anyone of the Paid members is holding the stock please exit today, in the first hour of trading. The stock as per market sources could be placed in the T-group and will be out of F & O from tomorrow." So, these members are saved from falling into the hands of the operators. The stock might now start hitting continuous Lower Circuits.

RDB Industries Ltd hit 3rd consecutive buyer freeze before cooling down a bit. The company has a hidden real estate story.

Pyramid Saimira Theatres Ltd closed flat today with good volume. The current news flow is positive for the company and hence I would not be surprised if the stock starts hitting continuous buyer freezes.

Unitech Ltd recommended at Rs.26, as a multi-bagger touched Rs.37.15, before closing a tad below this price. I am told that this stock was recommended by a brokerage house.

Premier Explosives Ltd moved up by 4.30% before cooling down a bit. This is going to be another multi-bagger going forward and is my old favourite.

BSEL Infrastrucutre Realty Ltd was recommended today to the Paid Groups, as the company has come out with good results for the Q3FY09 and also due to the fact that the company is doing a number of overseas projects. I have also recommended Kolte Patil Developers Ltd today to the Paid Groups.

Crompton Greaves Ltd moved to Rs.122.35 from yesterday's closing price of Rs.106, stunning all the investors. The company has recently acquired a group company, which generated a bit of controversy.

Reliance Industries Ltd (RIL) which was recommended in this blog and to the Paid Groups around Rs.1150, last week touched Rs.1575 today. Where is the stock heading now?? Reliance Industrial Infrastructure Ltd which gets a majority of its projects from RIL should do well going forward-a potential multi-bagger.

CESC Ltd recommended in this blog a couple of days back and also to the Paid Groups touched Rs.217 today. The stock is going to give high return to the investors.

Tata Steel Ltd recommended to the Paid Groups and also in this blog, at around Rs.155, touched Rs.204, in less than 15 days time frame.

HDIL recommended in the morning mail to the Paid Groups touched Rs.87.50. The company is doing a massive project in Mumbai (Bombay).

The following message was sent to the Paid Groups today, in the morning mail: Since the crude oil prices are moving up, the alternative energy companies would also do well---XL Telecom and Energy Ltd, Praj Industries Ltd, Suzlon Ltd (now I have put it in the buy list upgrading from my ealier sell call), Indowind Energy Ltd (is better than Suzlon Energy Ltd), NEPC India Ltd, Southern Online Bio Technologies Ltd, etc.

Fall in headline inflation to a record low and short covering in the derivatives segment ahead of the expiry of the near-month March 2009 contracts lifted the barometer index BSE Sensex above the psychological 10,000 mark in mid-afternoon trade. The Sensex had last had hit the 10,000 mark on 7 January 2009, the day Satyam Computer unveiled India's biggest corporate fraud and triggered a market slide. The S&P CNX Nifty breached the psychological 3,000 mark.

A slide in inflation to near zero reinforced expectations of a further easing of the monetary policy by the Reserve Bank of India (RBI). Stepping up of buying by foreign funds, overnight gains in US stocks, higher Asian markets and higher US index futures also bolstered sentiment.

However, the market came off the higher level in late trade soon after a steep surge took the Sensex past 10,000 mark in mid-afternoon trade. market slide. The BSE 30-share jumped 335.20 points, or 3.47%, off close to 60 points from the day's high.

Auto, capital goods, banking, IT and metal stocks surged. But index heavyweight Reliance Industries (RIL) came off the day's high in late trade.

Reserve Bank of India Governor D Subbarao today said the slowdown in India's economic expansion has been steeper than previously estimated and the challenge will be to arrest the moderation in growth. He said a painful adjustment was inevitable until the economy recovered and stimulus measures were the right step in the current extraordinary situation.

The RBI governor said there is a cost to further fiscal stimulus and more borrowings will put pressure on credit markets. The RBI governor said 2009/10 will be a challenging year unless business confidence and investment revived, and said earlier cuts in policy rates needed to flow through to the economy. "We set the policy rates but policy rates have to transmit through the banks," Subbarao said.

Inflation based on the wholesale prices rose 0.27% in the 12 months to 14 March 2009, a record low and below the previous week's annual rise of 0.44%, data released by the government in mid-morning trade showed. The fall in headline inflation to a record low has raised expectations of further easing of the monetary policy by the Reserve Bank of India (RBI) to boost demand in the economy.

Retail inflation is, however, ruling firm even as the whole sale price inflation has touched a record low. Retail inflation as measured by the Consumer Price Index for farm labourer (CPI-AL) and rural labourers (CPI-RL) eased to 10.79% in February 2009, a marginal dip from 11.62% and 11.35% respectively in January 2009. CPI-AL and CPI-RL were at 6.38% and 6.11% in corresponding period last year.

Annual inflation for food articles remains high even though it has eased from the 10 year high of 11.64% witnessed in first week of January 2009. Inflation for food articles stood at 7.35% for first week of March 2009 with double-digit price rise for many items including sugar and gur, pulses and cereals. At the time of announcing a reduction in key short-term interest rates, the RBI said early this month that though consumer price inflation has remained at elevated level due to increase in primary articles prices, it is expected to decline with a lag effect due to sharp fall in the wholesale price inflation.

Prime Minister Manmohan Singh on Tuesday, 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.

Meanwhile, there are sings that the credit flow to businesses is improving. During the fortnight ended 13 March 2009, loans sanctioned by scheduled commercial banks (SCBs), including regional rural banks, went up by Rs 22423 crore. This was the third fortnight in a row when credit flow went up. Earlier, an extreme risk aversion by banks had chocked credit flow to the industry - the lifeline of business.

European shares moved in and out of positive zone after a five-day rally as investors remained worried about the health of the financial sector even as recent US data raised hope for a recovery. Key benchmark indices in UK and Germany were up by between 0.01% to 0.49%. But France's CAC 40 fell 0.08%.

Asian stocks rose today, 26 March 2009 lifting the region's benchmark index to a two-month high, as better-than- expected US economic reports fueled optimism that global growth is responding to government stimulus measures. Key benchmark indices in Hong Kong, Japan, Singapore, South Korea and Taiwan were up by between 0.75% and 3.78%. Trading in US index futures indicated the Dow could rise 50 points at the opening bell on Thursday, 26 March 2009. US stocks advanced in a volatile session on Wednesday, 25 March 2009 as unexpected growth in durable-goods orders and new-home sales stimulated confidence the economy is improving. The Dow Jones industrial average rose 89.84 points, or 1.17%, to 7,749.81. The Standard & Poor`s 500 index rose 7.63 points, or 0.95%, to 813.88, while the Nasdaq Composite index rose 12.43 points, or 0.82%, to 1,528.95.

The US February 2009 new home sales increased by 4.7% to 337,000 compared with January 2009, as against an expected decline of 2.9%. Commerce Department's report showed durable goods orders rose 3.4% in February 2009 over the previous month to $165.6 billion, as against an estimated 2.5% fall.

Closer home, traders and brokers can now have a higher exposure in the currency futures market after the market regulator Sebi on Tuesday, 24 March 2009, doubled the gross outstanding limit to $10 million for small traders, $50 million for brokers. However, the limits for banks - the biggest participants in the market so far - have been left untouched at $100 million.

Earlier the global financial crisis ends and sooner the risk appetite of global investors and global companies improves, better it will be for India Inc. An increase in risk appetite of global investors/global companies will help Indian firms raise overseas funds required for business expansion. The global financial crisis has chocked the overseas funding route for Indian firms.

Raising funds could become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into practice from 1 April 2009. All business units, irrespective of their size, will need to take ratings for their enterprises to secure working capital, loans, and other funds from banks.

Lack of funding has hit a slew of long-gestation infrastructure projects in India. World Bank Chief Economist & Senior Vice-President, Dr Justin Yifu Lin, on 13 March 2009, said if India can improve its infrastructure such as electricity, power, transportation and port facilities, it will be well on its path to achieve a 9-10% growth.

Meanwhile, foreign institutional investors have stepped up buying of Indian stocks which follows easing of FII selling vigour in the past few days. FIIs bought shares worth a net Rs 2,494.70 crore in nine trading sessions from 13 March 2009 to 25 March 2009. According to provisional data on NSE, foreign institutional investors (FIIs) were net buyers worth Rs 348.65 crore while mutual funds bought shares worth Rs 8.92 crore on Wednesday, 25 March 2009.

Foreign funds can take solace in the recent sharp rebound in the rupee against the dollar. However, the currency has been volatile. A recent sharp slide in the rupee to a record low had resulted in a depreciation in the value of FIIs equity portfolio to the extent of the fall in rupee. The rupee hit a record low beyond 52 per dollar early this month.

The Indian currency rose in early trade on Thursday 26 March 2009 helped by gains in other Asian currencies but month-end demand for the US unit from refiners and importers could limit gains. The partially convertible rupee was at 50.72 per dollar, higher than its Wednesday's close of 50.74/75.

Domestic institutional investors have been absorbing heavy selling by foreign funds in calendar year 2009. Mutual funds are likely give support to prices to prop-up year end net asset values (NAVs). The financial year ends on 31 March 2009.

The recent steep volatility in the currency does not augur well for corporate India as it may result in hedging losses for some firms.

Meanwhile, the National Advisory Committee on Accounting Standards (Nacas), has reportedly favoured suspending for two years a key rule that requires firms to mark-to-market (MTM) foreign exchange assets and liabilities, a decision which is favourable for corporate India.

Accounting Standard-11 mandates MTM provisioning in the P&L a/cs for forex-related gains and losses. It requires that forex assets & liabilities be recorded at a fair value on the date of preparation of the balance sheet. The demand to suspend this rule, known in accounting circles as AS-11, was made by the Confederation of Indian Industry (CII) on grounds that it could severely distort the earnings of many companies. It was contended that this accounting standard, designed to address normal conditions, should be suspended for the time being, as the present market conditions were not normal.

The upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009. More so at a time when it is highly unlikely that either Congress or BJP will come to power on its own, i.e., without the support of other small/regional parties. Early estimates point a fractured mandate. An alliance led by the Congress party is ahead in pre-poll surveys carried out by several polls.

But in a move which could undermine the chances of a Congress-led alliance getting more seats in the election, RJD supremo Lalu Prasad has announced candidates for 28 of the 40 constituencies in Bihar including from the three seats where Congress has sitting MPs. RJD is one of the key constituents of the current Congress-led UPA government at the Centre.

The Congress, meanwhile, has reported sealed a seat-sharing pact with the Nationalist Congress Party (NCP) in the populous Maharashtra state. Relations between the two parties have been prickly as the NCP negotiated with opposition parties to undercut Congress and boost its leader's prime ministerial ambitions. Congress will stand for 26 seats in the state and the NCP for 22. The allies are weighing up their options for a similar deal outside the state.

The Congress party on Tuesday 24 March 2009 said it would extend interest relief to farmers and build on the national job guarantee scheme. The focus on populist measures by Congress may weigh on the stock market sentiment especially at a time when the fiscal deficit has risen sharply. Releasing the party manifesto for the election, the Congress party on Tuesday said it would maintain government control over state-run firms in the manufacturing and finance sectors.

As per reports, BJP's manifesto is likely to be even more populist than that of the Congress party. The BJP looks set to sell rice to families below the poverty line at the hugely subsidised price of Rs 2 a kilo. Congress has already promised to sell 25 kilos of wheat or rice per month at Rs 3 a kilo.

A group of smaller political parties, including the communists, have formally launched a Third Front in a bid to provide an alternative to the two main parties viz. the Congress and the BJP.

A latest jolt to the Congress party came from a decision of the regional party in Tamil Nadu viz. the PMK on Thursday, 26 March 2009, to join hands with the All India Anna Dravida Munnetra Kazhagam (AIADMK). PMK is a part of the ruling Congress-led United Progressive Alliance at the centre. The PMK's decision to join AIADMK could give impetus to the Third Front if the PMK and AIADMK join it.

The BSE 30-share Sensex advanced 335.20 points, or 3.47%, to 10,003.10, its highest closing since 6 January 2009. At the day's high of 10,061.36, the Sensex rose 393.46 points in late trade. At the day's low of 9,739.93, the Sensex rose 72.03 points in early trade.

The BSE Sensex has risen 1,842.70 points or 22.58% in eleven trading sessions from a three-year closing low of 8,160.40 on 9 March 2009

The S&P CNX Nifty was up 97.90 points or 3.28% to 3,082.25.

The market breadth, indicating the overall health of the market, was strong on BSE with 1,394 shares advancing as compared with 1,163 that declined. A total of 56 shares remained unchanged.

The BSE clocked a turnover of Rs 4,607 crore, higher than Rs 4,097.44 crore on Wednesday, 25 March 2009.

Nifty April 2009 futures were at 3075.50, at a discount of 6.75 points as compared to the spot closing of 3082.25. Turnover in NSE's futures & options (F&O) segment increased to Rs 76,957.01 crore from Rs 74,456.63 crore on Wednesday, 25 March 2009.

The BSE Mid-Cap index was up 0.75% and BSE Small-Cap index rose 0.32%. Both the indices underperformed the Sensex.

The BSE Capital Goods index (up 5.42%), the BSE Power index (up 4.02%), the BSE Metal index (up 3.97%) outperformed the Sensex.

The BSE Realty index (down 4.54%), the BSE Healthcare index (up 1.21%), the BSE Consumer Durables index (up 2.26%), the BSE Oil & Gas index (up 2.42%), the BSE FMCG index (up 2.67%), the BSE PSU index (up 2.74%), the BSE Auto index (up 3.03%), the BSE TECk index (up 3.25%), the BSE IT index (up 3.29%), the BSE Bankex (up 3.38%) underperfomed the Sensex.

From the 30 share from the Sensex pack 27 stocks gained while rest fell. Reliance Infrastructure, ONGC, Tata Power Company, Bharti Airtel rose by between 4.91% to 5.57%. India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 2.16% to Rs 1,566.55. The company is reportedly expected to start natural gas production from its Krishna Godavari (KG) basin field in early April 2009.

RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.

Shares of oil marketing companies rose for the third straight day in a row after the government issued oil bonds worth Rs 10,000 crore to compensate them for under-recoveries on sale of petroleum products at a controlled price during the current financial year. BPCL and HPCL rose by between 2.6% and 2.31% respectively.

But Indian Oil Corporation fell 0.85% after company said on Wednesday, 25 March 2009 the government has approved a proposal to absorb its subsidiary Bongaigaon Refinery & Petrochemicals (BRPL). Indian Oil will issue four shares for every 37 shares in BRPL.

Indian Oil Corporation has been issued oil bonds worth Rs 5,817.27 crore, while Bharat Petroleum Corporation has been issued bonds worth Rs 2,144.32 crore. Hindustan Petroleum Corporation has got bonds worth Rs 2,038.41 crore.

Rate sensitive real estate shares fell on recent reports falling interest rates have failed to revive housing demand. DLF, Indiabulls Real Estate, Akruti City fell by between 0.31% to 55.06%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.

Some healthcare stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Matrix Laboratories, Lupin, Dr Reddy's Laboratories, Lupin Pfizer, Cipla rose by between 0.22% to 4.29%.

Outsourcing focussed IT stocks rose on hopes of a revival in the US economy, the biggest market for IT firms. India's largest software services exporter by sales TCS jumped 5.94%. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.

India's second largest software services exporter Infosys Technologies rose 3.06%. Its ADR rose 2.25% on Wednesday. Recent reports said it may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.

India's third largest software services exporter, Wipro rose 5.03%. Its ADR gained 0.54% on Wednesday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).

The Indian rupee surged on Thursday helped by gains in other Asian currencies but month-end demand for the US unit from refiners and importers could limit gains. A stronger rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.

Metal stocks gained on a recent solid surge in metal prices on the London Metal Exchange and on imposition of a safeguard duty by the Indian government recently on import of some aluminium products. Steel Authority of India, National Aluminum Company, Tata Steel, Hindustan Zinc and Hindalco Industries rose by between 1.06% to 5.46%.

Rate sensitive auto shares gained on hopes lower interest rates and fall in fuel prices would spur demand for vehicles which is mainly driven by finance. India's largest commercial vehicle maker by sales Tata Motors rose 7.94%. The world's cheapest car Tata Nano was unveiled in Mumbai by Tata Group Chairman Ratan Tata on Monday 23 March 2009. Bookings for the Nano are expected to soothe the company's funding woes.

India's largest car maker by sales Maruti Suzuki India rose 5.07% on recent report firm is working towards launching new cars and improvising the existing ones to counter attack Tata Motors' recently unveiled world's cheapest car Tata Nano. In a tussle to capture the Indian passenger car market, Maruti is likely to launch Maruti Splash or Ritz in the second week of May 2009. Ritz will mount a 1.2 litre (KB series) petrol or 1.3-litre diesel engine and will be priced at around Rs 4-5.5 lakh.

India's largest motorbike maker by sales Hero Honda Motors rose 1.79%. India's largest tractor maker by sales Mahindra & Mahindra rose 1.58%.

Banking stocks gained after Reserve Bank of India (RBI) on Wednesday 25 March 2009 issued fresh norms for the treatment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), a move that will help improve the financial health of banks. India's largest bank in terms of assets and branch network State Bank of India rose 4.17%. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.

India's largest private sector bank by net profit ICICI Bank rose 2.31% to Rs 374.20. But the stock was off the day's high of Rs 376.70. Its American depository receipts (ADR) remained flat on Wednesday 25 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.

India's second largest private sector bank by operating income HDFC Bank rose 1.37%. Its ADR rose 4.65% on Wednesday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.

India's biggest dedicated housing finance firm by operating income HDFC rose 3.51%, extending gain for the second straight day after it announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.

The new RBI norms are expected to improve capital adequacy and bring down the level of net NPAs. Under the revised norms, the banks can use the provisions made for decline in the fair value of restructured advances (standard assets and NPAs) for netting from relative assets.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 6.1%. As per recent reports L&T and Grasim Industries are on the verge of settling their 7-year old legal dispute over Grasim`s 0.62% stake in L&T and the latter`s 11.49% stake in Ultratech, the Birla group cement firm. Grasim Industries and Ultratech Cement are Aditya Birla group companies. Other capital goods stocks Bharat Heavy Electricals, Crompton Greaves, Punj Lloyd, Praj Industries, ABB, rose by between 0.49% to 14.1%. Some FMCG stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Nestle India, Britannia Industries, Marico, Tata Tea, ITC, United Breweries rose by between 0.52% to 4.23%. India's largest FMCG firm by sales Hindustan Unilever rose 1.85%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008. Unitech clocked the highest volume of 3.7 crore shares on BSE. Motherson Sumi (3.42 crore shares), Cals Refineries (1.74 crore shares), GVK Power Infrastructure (1.09 crore shares) and IFCI (95.77 lakh shares) were the other volume toppers I that order. Akruti City clocked the highest turnover of Rs 545.49 crore on BSE. Reliance Industries (Rs 370.53 crore), Motherson Sumi (Rs 206.66 crore), ICICI Bank (Rs 163.49 crore) and Reliance Infrastructure (Rs 135.79 crore) were the other turnover toppers in that order.