WINNING STROKES: THINK DIFFERENT:

My today's Jackpot call to the Paid Members (Yahoo Messenger and SMS), K Sera Sera Productions Ltd hit the buyer freeze. The company came out with superb results today.

Manjushree Technopack Ltd  recommended to the Paid Groups on 2nd May, 2010 and to the Free Groups on 9th May, 2010, touched Rs.74.45 today, as the scrip made a new high.

Sanguine Media Services Ltd recommended today again for an aggressive buy to the Paid Groups (Yahoo Messenger and SMS), after the new of some tie-up reached my desk--the scrip hit the buyer freeze within few minutes of my recommendation. Moreover, the scrip generated good volume today. Investors should accumulate as much as they can during the next few days for a target of Rs.18-20, in the short to medium term perspective. Please consider this as your Fixed Deposit and keep holding like you did for Ennore Coke and Premier Explosives or VLS Finance Ltd. Patience is necessary in stock market--those who have makes maximum money.

Reliance Industries Ltd told to buy in the last week moved to Rs.993, before cooling down a bit. If the economy improves then the demand for Oil will also increase and hence RIL will be the biggest beneficiary. Moreover, yesterday I mentioned that, RIL and PUNJ LLOYD are among five companies that submitted bids to set up a solar project that would power the country’s Parliament Annex building which invited bids for the 80-kilowatt solar photovoltaic project last month. So solar energy projects are hotting up throughout the world......Also, RIL has re-opened its fuel retail network across Gujarat.....!!
My recommended VLS Finance Ltd hit another buyer freeze. The scrip has been hitting non-stop buyer freezes since the last few days.
Note: The discount scheme for the Paid Services has been extended till 31st August, 2010, after which cost of services might increase.
Those who wants to join the Paid Scheme should send me a mail at:
(i) mailto:msuman2005s@rediffmail.com
(i) sumanm2007s@gmail.com

Also those who are yet to renew their Paid Subscriptions are requested to do the same at the earliest; taking the advantage of the discount schemes. 

Northgate Technologies Ltd:

A short treatise, of otherwise a very sad story of mis-management of the company and depletion of the wealth of small investors:
[Updated]

Northgate Technologies Ltd's principal business is online advertising services, through which the company aggregates, positions and tracks internet ads for online advertising agencies and other advertisers.

It also operates file hosting and sharing portal - Ziddu.com, social networking portal - Bharatstudent.com, Globe7.com which provides online communication and infotainment services and a gaming portal - Egglad.com.

Earlier in the year, the company entered a new business segment of providing algorithmic trading, global electronic communication network, direct market access and order management system network services for securities trading by entering into a strategic alliance with Stampede Holdings Pvt. Ltd.

The company announced a loss of Rs 35 lacs on revenues of 1.69 Cr for the quarter ended Dec'09.

The company is in a midst of restructuring exercise and is closing sales and marketing offices as well as reducing the sales force in Hong Kong, Singapore, Europe and USA after a number of contracts were terminated after the financial crises.
The company these days neither updates its web-site nor sends proper information regarding its other portals to the stock exchanges, which they said would be sold--don't know why when they are generating business (according to the company)....
Is it another Essar Shipping case where the management is rumoured to have sold the Vadinar Terminal at around Rs.1000 Cr but showed its value less than Rs.300 Cr on the books, with promoters rumoured to have pocketed the remaining amount...!!
I think the shareholders need to unite to take on the management of the Northgate Technologies Ltd, who can pay salary and other benefits to their staffs but cannot reward the shareholders....!!
Is the company hiding something against the backdrop of economic crisis or giving economic crisis as excuse for selling its properties at the price of water (as mentioned on the books) and showing loss on the balance sheet...?? SEBI should enquire if the Northgate really sold the properites at a loss or something else...or it deliberately showed less figure on the books with the management pocketing the remaining amount...When the CMD of a company wants to resign showing some frivolous reasons....the shareholders can speculate many things....!!
If a company neither updates its web-sites nor gives any or proper information to the Bombay Stock Exchange, then from where will the shareholders get information everytime about its present state.......except with the help of independent sources who might fool them time and again....leading to the depeletion of small investors' wealth...!!
Sometimes the company says some names (last time they said three names) have been shortlisted for probable buyer of its web-properties...sometimes the company says it will not sell its web-properties.....sometimes it says, it has got a viable business model from its web-properties....sometimes it says, the selling of web-properties is on the priority list..sometimes it says it will sell only some of its properties....sometimes it says, it will sell all....sometimes it says it will raise funds to expand its business (when the company is having financial crunch, how can it talk of expansion).....sometimes there are rumours that Reliance Media Works Ltd is eyeing the company's web-properties ......sometimes it is Zee TV Ltd.....WHAT TO BELIEVE and everytime the small investors are the greatest victims.....!!
Securities and Exchange Board of India (SEBI) should take these grievances of the shareholders very seriously and force the company go for voluntary disclosures of its present business model, which is too nebulous....SO THAT ANOTHER BIGGER SCAM DOES NOT TAKE PLACE.....
The rumour in the market is that the company is expected to present a better balance sheet in Q1FY11, but rumour o ka kya bharosa....!!
One of the best known and very efficient faces in the Company Mr.Ghouse, the earlier company secretary, has already left, for better prospects elsewhere....don't know whether there will be further exodus of good people from the company or not.....!!
It is worth mentioning here that PSTL tanked severly and its problems increased when Mr.Sahu, the earlier very efficient Company Secretary left the company to join another.....!!
BUT EXACTLY, OPPOSITE HAPPENED WHEN ITS EARLIER COMPANY SECRETARY LEFT FOR THE NEW ONE TO TAKE HIS PLACE IN CASE OF PREMIER EXPLOSIVES LTD...
I am disgusted with the current management and want strong action against them for misleading the small investors........I really feel for the shareholders who put their money in the shares of the company seeing their big advertisements and mud-filled balance sheets (which many now say were probably FAKE or SYNTHETIC) and is now in a pitiable state....!!
The management seems to have no shame and even now talks with a very loud voice.....Someone should catch hold of their ears and teach them  how to behave with the shareholders, so that such kinds of companies do not play with the small investors' wealth....!!
Therefore the time has come for the shareholders to unite and show the doors to the incompetent persons mentioned in the company's pay-rolls....The shareholders should seek SEBI's timely protection in such cases.....or else it could be another case of Kolar Biotech Ltd or IFSL Ltd...!!

Sanguine Media Services comes up with an Impressive Chart Pattern: 

Did we really spot Island Reversal Pattern??!!

Sanguine Media Services Ltd is a turnaround story to boast of.....Now if you study turnaround companies, you would see that after the event they rise rapidly, eg. Ennore Coke, Premier Explosives, Sakhti Sugar, Chandra Prabhu International Ltd and so on. Moreover, Sanguine Media Services Ltd is likely to improve its fundamentals rapidly due to lot of restructuring done in the last couple of years. It is presently working on four main verticals:  Media, Events, Rural Marketing and Film advertising. The company is already doing well in the Media and Events management space. In the days to come we would see good business coming from the Rural Market (once company's strong USP)  and Film advertising. Its customers include, who's who of Industry, like HUL, ICICI Bank Ltd, Jyoti Laboratories Ltd,  GTC, Airtel, Coca Cola India, Cognizant Technologies Ltd, Dabur India Limited, ITC Ltd,  Lintas Media Group, Madison Media, Nerolac Paints, Ogilvy & Mather, Pepsico, Reliance Web World, Siemens, Starcom Worldwide, TCS, Turner International Asia, TVS Group, Wipro, Wipro Consumer Care, etc, to name a few. Moreover, Sanguine Media Services Ltd has a very efficient and multi-talented person named Mr. M. Varadharajan in its board, who is not only a Post Graduate in Business Admininstration but has a vast Experience in Rural & Media Marketing. Having already found its edge in the media and event management space, the company is now mainly focussing in the Rural Marketing Space. It is to be noted that For 3 (three) decades, Sanguine has been providing value added services to well known brands to penetrate the competitive and complex rural Indian market. A well experienced manpower having a thorough knowledge about the topography as well as the local values and traditions, have helped to create customized concepts for various sales promotion activities.
Services:

•     Rural Van Operation / Video on wheels
•     Shandy Market Promotion
•     Consumer Contact / Promotion
•     Promotional Selling
•     Promotional Distribution
•     Market Research
•     Rural Festivals

Moreover I was looking at its daily and weekly charts, which were looking excellent. I think Sanguine Media Services Ltd has formed a rock solid bottom which will be difficult to break on the down side, at least in the short term.

The Candle Stick Chart Patterns today gave an excellent break out pattern which will be confirmed after the scrip breaks another resistance level of Rs.3.8-3.90 on the daily charts. I think you know that: A major advantage of Candlestick formations is that they can identify dramatic changes in investor sentiment. One of the highest profit potentials for making money on big stock market trades is being able to analyze the investor sentiment upon a stock "breakout" situation. Utilizing the Candlestick formations to interpret the results of a breakout situation provides a huge advantage to the Candlestick investor.Now in case of Sanguine Media Services Ltd after a long time we have seen Long white candlesticks in chart patterns, indicating strong buying pressure in the counter. It is to be noted that the longer the white candlestick is, the further the close is above the open.

This indicates that prices advanced significantly from open to close and buyers were aggressive. If you look at the chart of Sanguine Media Services Ltd, a little minutely you will see that after some extended declines (or black bodies), long white candlesticks was formed, which
suggest that it could be a potential turning point or support level. If buying gets too aggressive after a long advance, it can lead to excessive bullishness. Moreover, long white candlesticks indicate that the Bulls controlled the ball (trading) for most of the game.

But then a slightly longer upper shadow indicates that the Bulls controlled the ball for most part of the game, but lost a little control by the end as the Bears made an impressive comeback but could not defeat the bull army. Also I am spotting something like Island Reversal Pattern on the Candle Stick Chart Pattern---but I not sure. Some Candle Stick expert can confirm the same for me....

SO WHAT I FEEL IS THAT SANGUINE MEDIA SERVICES LTD WILL NOW MOVE UP IN TOP SPEED....Above IS ONE SUCH CANDLE STICK CHART PATTERN (Island Reversal)....

Bulls Roar in Dalal Street: Fools Roar in Vain Pursuits:

The Paid members were asked to accumulate the scrips, a couple of days back, when everybody were in selling mood or were predicting 4500 on Nifty. Most of my RECOMMENDED SCRIPS MOVED NORTHWARDS  today much to the displeasure of my critics, who only see Northgate Tech, Glory Poly and Sanguine Media as my only recommended scrips. Let someone give a little good advices to these blinds and ignorants or in simple terms--Idiots.

Anyway, what I feel is that the market has found a bottom and the next stage of rally has started with the beginning of monsoon in the whole of India. Good monsoon is expected to reduce food inflation which has somewhat took away the night's sleep of our Finance Minister..

In my view, the markets are in the early stages of a significant rally that could last for several months; although the economy may grapple with debt-strapped consumers and other factors that led to economic collapse.
However, it should be remembered that significant market rallies have historically taken place during times of economic rebuilding.

Moreover, though the problems that led to the financial collapse were significant, but no one should underestimate the power of the massive governmental interventions deployed to re-ignite growth around the world. Monetary stimulus supposedly acts with a lag of about 12-18 months and the effect of some of it are being seen in the US and much of it we are expected to seen in Europe in the days to come. 
Throughout much of 2008, the Federal Reserve undertook unprecedented efforts to jump-start the economy, and in the fall, countries around the world followed. While the continuing problems within the U.S. the economics crisis has now crossed its shores to land in Europe. However, we are beginning to see the signs of stabilization in the United States and Europe will also soon go the US way. Asian and Latin American economies have nothing to fear as of now---so the conclusion is that: we are probably at the beginning of a massive Bull Market.

REMEMBER A BULL MARKET ALWAYS BUILDS UP ON SKEPTICISM.....

Refex Refrigerants Ltd recommended a number of times in this blog and also to the Paid Groups only some days back, almost hit the buyer freeze, before the start of the renewal energy projects. The company has applied for carbon credits to the international bodies as it is into the making of eco-friendly gases. Refex Refrigerants Ltd is a potential multi-bagger for future. You can visit its web-site: www.refex.co.in for more details on the company.  

Sterlite Industries Ltd recommended a couple of days back to the Paid Groups, reached it intermediate target of Rs.632 as the stock crossed Rs.644 today. United Phosphorous Ltd recommended to the Paid Clients around Rs.173--178, touches Rs.187 today in the late trade.

Sicagen India Ltd recommended a couple of days back, moves up by 4.81 %..... 

Sanguine Media Services Ltd touched Rs.3.69 before closing flat but generating good volume. Just buy the shares of the company in bulk  (at least 50, 000) and keep it holding till 2012-13 (or may be earlier). This is one of the scrips where I can assure you return over a period, like Ennore Coke Ltd or Premier Explosives Ltd.

April 2010, property prices in India showed a marginal decline of 2%.

This decline in National MPI can be attributed to drop of property

index in key cities - Mumbai (-9.6%), Hyderabad (-3.4%),

Chennai (-3%) & Pune (-1.8%). Bucking the trend Delhi, Ahmedabad

& Bangalore indexes gained 10%, 8.2% & 2% respectively whereas

Kolkata index remained stable. I have been saying about the expected fall in the property prices in Mumbai (Bombay) since the last couple of months and now see what happened. But a group of market-men are recommending property stocks to clients, with the slogan, "We have said when the others will sell we will buy" as if  this is a rule.....Huh!!

.

In another significant development, a marketmen, who himself forwards a number of weekly magazines to the clients illegally (showing his thumb to the copyright acts of Indian Union) apart from forwarding the calls of some well-known web-sites (or advisory services) wrote a long letter in some Yahoo Groups talking about forwarding his calls and the great crimes involved in it...

Agreed, that forwarding of the calls of other Paid Groups  (without even mentioning their name) to earn money is faulty and should be stopped....Even I am a victim of such blatant flouting of law and need something to stop these cheats......

But what about the person who himself is involved in this crime but would like to present himself as "“Holier Than Thou” ??!!...When one is staying in a glass house he should not point figures at others...Isn't it ??!! A thief calling others a thief...!!!  This is not fair boss....!!

This fellow used to do the same thing with my Paid Group calls which he used to get Free from me due to good relation. After, I heard that he is forwarding my calls to his Paid Groups,  I stopped service to him and removed his name from list; though he pleaded many times to include him in the list, swearing in: not to repeat the  same fault again. But Suman Mukherjee is very strict in certain matters.....

Now the things have gone to such an extent that he has started playing God, saying he can give exact levels of buying and selling of scrips!!  And gullible investors fall prey to such attractive slogans. 

What I feel is that someone should patent his great formula (or should we say "Winning Formula") and could possibly sell it to the likes of Rakesh Jhunjhuwala or Warren Buffet, the two greats, who till today could not device such a magic formula. This might give them some insight as how to buy scrips at exact prices and sell them at exact prices!! Huh!!

I wonder why he does not himself take loans of few billions (1 Billion= Rs.100 Cr), from banks or NBFCs, invest in scrips and then become the richest man in the world in matter of few days; instead of opening a Paid Service, giving calls and taking all the hassles??!! This would have been much simpler isn't it....I need to talk with my friends like Vikram Solanki, Ashish Chugh, Vijay Bombawani, etc. if they knew how to predict exact bottom and top of scrips. I urgently need to talk with the ace investor from Kolkata, Mr.Siddhartha Chatterjee, CA & CS, if he knew about such magic formulas!!

In this context I remember a line of Amir Khan from the movie: Three Idiots: "Tu andar rahe bhai, bahar mat aa....bahar bohut circus hai" ..... Indeed this world is so much full of circus including the stock market, that I sometimes feel that William Shakespeare said the correct thing in  As You Like It: 

"All the world's a stage,
And all the men and women merely Players;
They have their Exits and their Entrances,
And one man in his time playes many parts…"

What I feel is that, there should be a limit to bluffs and caricatures----building castles with sand does not last long.  There is one joker (who says he is an engineer--did not SEE such headless  fools in my life nor did I see such models among my classmates) named Amit Aurora of Delhi, who thinks Suman Mukherjee only represented Northgate Technologies Ltd and it is the worst stock in the world, inspite of lot of developments in the company off late. He fails to understand that stock market is sometimes driven by sentiments alone, phoo phooing the fundamentals. I do not know how to deal with the donkeys like Rajeev Ranjan (who was first given free service and then given heavy discount on the Paid Service, when he begged for the same), a Bihari (who are called Bhiaiyas in Bombay and were the worst sufferers in the last Raj Thakrey episode) who says he works for RBI---don't know how morons started getting entry into the  Premier Institutes like Reserve Bank of India or is this just another case of bluff....Huh!! 

Bhai I am into the market for more a decade and hence don't think you can escape my eyes committing crime or distributing crap against me or my well-wishers like my brother, Arun Mukherjee----my sources will catch you from, under the sea and nail you in a small time. 

Hence don't think that you have become too smart to outsmart me.....Suman Mukherjee is not a  fluke or a canteen boy who could be bought by giving him a cup of tea. Lot of hardworks  put me in this position. Hence try to remain where you are and stop these nonsenses. There should be a level of tolerance......after that bubble is sure to blast....!! Keep your craps away from my eyes or else you will be made naked in this blog....

Some News for Use:

1. Ambalal Sarabhai Enterprise Ltd will start production in two of its plants in Gujarat within the next 15 days time frame. One of the plants is in Boroda and another one is a little far off from Baroda. The company hopes to turn to black by Q2FY10. But since the stock market reacts in advance and hence we could see some movement of the stock before actually it turns black. The company is also taking other restructuring measures to quickly turnaround. A good and safe stock to accumulate at the CMP of around Rs.11--12.
2. In case of Kohinoor Broadcasting Corporation Ltd, Deutsche Bank Trust Co Americas holds 28,777,540 or 26.11% shares of the company in the form of GDR issue. Also it is seen that Institutions has been constantly increasing their holdings from 17.95% in September, 2009 quarter to 21.47% in December, 2009 quarter to 25.01% in March, 2010 quarter. Also we find that the promoters' holding in Kohinoor Broadcasting Corporation Ltd has slightly increased from 0.23% in September, 2009 quarter to 0.36% in March, 2010 quarter. These are all positive developments for the shareholders. Moreover, both the FY10 results and Q4FY10 results of the company are good.
3. Those who have entered Premier Explosives Ltd and Ennore Coke Ltd should book some profits and take position in Hilton Metal and Forging Ltd at the CMP of Rs.25--25.5.
4. Hospitality chain Country Club India Ltd (CCIL) plans to invest around Rs 100 crore this fiscal on its latest venture -- Country Club Grand Fractional Ownership Club (CCGFOC), a top company official said. Country Club will also start operations of 11 more clubs this year in Tier I and II cities. With over 2.25 lakh members worldwide, the BSE-listed hospitality firm has for the first time in India launched a concept that offers members fractional ownership of holiday apartments at diverse locations across the country. The four properties, under this new scheme, would be coming up at Bandipur in Mysore, Medchal near Hyderabad, Tumkur near Bangalore and Kolad near Mumbai. 
The fractional ownership concept, which is quite popular in the West, enables a member to co-own and use a holiday home by paying a fraction of amount. Those who are holding the scrip should continue to hold the scrip as the next target seems to be Rs.32.

5. Northgate Technologies Ltd has informed hat the Board of Directors of the Company at its meeting held on April 15, 2010, has considered and approved the plan of fund raising through equity offerings and/or borrowings, up to an amount of Rs. 25 Crores (Rupees Twenty Five Crores only) subject to shareholders and other approvals. So the company is now thinking of raising money--a Good Sign. 

The equity offerings can come in the form of Preference Issue according to the sources close to me. This is a good way to sell a part of the stake of a company and get the strategic  help. Seems the company is moving in the right direction. I have received news from the sources close to me that the company has started to do well. With no more massive write offs coming we could see some positive developments on the balance sheet--though the revenue will be much less considering Q-o-Q., figures Investors can start averaging the counter for the medium term outlook. 

6. Those investors who have invested in Refex Refrigerants Ltd around Rs.23--24 range a couple of weeks back should book profits and wait for the company to declare the results. 

I do not think the that Q4FY10, results will be too excellent considering that the company still has some problem with the working capital requirements. But then the season of the company has started and soon we could see better performance for the company. The company has also ventured into Renewable Energy Sector, which will start generating revenues probably from Q2DY11. 

7. Merchant Tariffs up 72% since March, 2010: The Merchant Power rates has started to surge since March, 2010, as the summer heat has perked up the refrigerator, AC and Fan bills. Moreover, severe shortages witnessed across India, particularly in Southern India have resulted in increase in Merchant Tariff. The southern region has been  affected due to grid congestion as well as the fall in the wind power generation in Tamil Nadu. The delay in the commencement of the new power plants has affected the supply across the country pushing up the merchant rates.

The merchant rates are currently at their highest level since August, 2009 and have touched day-high rates at 10/unit. Companies like Jindal Power, Tata Power, Energy Development Company Ltd, etc. are likely to be key beneficiaries of this  high Merchant Tariffs. So those who are holding these shares can continue to hold or take fresh positions on declines. Energy Development Company Ltd is all set to cross Rs.100 within the next couple of months time frame. According to a number of analysts the Merchant Tariff are expected to remain high till June, 2010 (i.e Q2FY11), due to strong demand arising out of the increased industrial activity and heavy demand from the summer months

8. The Indian Markets are likely to remain subdued next week as the investors could maintain a cautious stand ahead of RBI's policy meet on next Tuesday. Hero Honda is expected to report better net profit growth. 

The stocks of major automobile companies could be moving in line with the broader market with the results of Hero Honda and Maruti setting the tone for the sector. 

Moreover, the Banks are likely to trade in a narrow range ahead of any release of 2010-11, Annual Monetary Policy by the RBI on Tuesday. 

RBI could hike reverse Repo and Repo rate by 25 basis points and CRR by 50 basis points which has already been factored by the markets. Any hike in policy rates will lead to a further rise in government bond yields, which may bring down banks' treasury gains and profits. 
Note: I am still out of station and hence your Instant Forex (www.instantforex.biz) needs will be solved only when I am in station, once again. 
Those who are sending me repeated mail inspite of reminding them a number of times about my absence from work-place should use their brains a bit.....I shall be highly obliged if they do that.....

The March, 2010 quarter results of Kohinoor Broadcasting Corporation Ltd:

The consolidated results of Kohinoor Broadcasting Corporation Ltd are good if not excellent.Let me sum up the consolidated results for you below:

The total sales for Q4FY10: Rs.156.01 Cr (Rs.44.65 Cr)

Net Profit for Q4FY10: Rs.18.44 (Rs.15.9 Cr)

EPS for Q4FY10:  Rs.1.67 (Rs.1.44)

For FY10:.

The total sales: Rs.508.96 Cr

Net Profits: Rs.56.27 Cr (Rs.33.64 Cr)

EPS: Rs.5.11 (Rs.3.05).

So the consolidated results are excellent and needs to be looked at, considering the present downturn.

From the BSE data I find that there was a block deal of 46508 shares on 13th March, 2010. Moreover, on 5th March, 2010, there was also another block deal of 470018 shares on the expectation of better results, which happened ultimately.

The company has invested lot of money for the upcoming project and has got the license for 2 channels---but it is still strange why the shares of Kohinoor Broadcasting Corporation Ltd are trading below its book value.....

I think the long term holders of the shares of Kohinoor Broadcasting will be rewarded like Premier Explosives Ltd, Ennore Coke Ltd, Rolta Ltd, Sunil High Tech, Pratibha Industries Ltd, etc. I have added some before the results and will keep holding till late December, 2010 or early  January, 2011, with occasional buying and selling.

  I have taken some Northgate Technologies Ltd yesterday after the market rumour that the company got the license for the Securities Trading, which is expected to generate good amount of revenues for the shareholders.

Now with no more write off coming in the following quarters, we could expect a little better for the company in the Q4FY10. 

 Keep adding Hilton Metal and Forgings Ltd before the board meeting for the starting of the new business. The company should come up with good results in Q4FY10, due to improvement in the business environment.

Note: I am still out of station but is having access to internet, some time and hence is able to send you some information. It will take some more time to reach the destination because of heavy work schedule.

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.