Away till 2007

Note: Please note that this blog will not be updated till January 2, 2007 as i will be away on holidays. In the meanwhile, happy investing & wish you a new year full of returns!!

Indian Stock Market Technical Analysis: Recommendation for shareholders

Sensex has been on a bouncy ride since last few days. The trend has been volatile with large fluctuations seen in intraday trading. It would make a interesting reading to see he technical charts.

As we see the charts, the last downturn occured during the May June period of this year & the index has been marching upwards since. There has been a recent blip but still the markets are on quite a high. If we see the MACD signal, it is clear that currently it is in SELL mode.

As against that W%R & RSI seem to give mixed signal. They are more of less in HOLD range with indication that buying should be done in selected good scripts.

Our advice to investors is that they should SELL the stocks for which they have good returns & only hold those which have good short term prospects. For the rest of scripts, it would be wise to keep money liquid & wait for the next downturn which should come in near future.

Sensex up 45 points

The market witnessed high volatility for the second day in a row today as the Sensex moved between positive and negative zone.

The 30-share BSE Sensex settled with gain of 44.65 points, at 13,384.86. It had opened lower, and slipped to an intra-day low of 13,182.35 shortly after the commencement of trading. It kept on recovering as the day progressed and struck an intra-day high of 13,441.36. It moved 259.01 points in this range.

The S&P CNX Nifty rose 17.95 points (0.47%) to 3833.50

The market breadth was strong on BSE, as buying resumed for small-cap and mid-cap stocks. Against 1,430 shares that advanced on BSE, 1126 declined. 70 remained unchanged.

The total turnover on BSE amounted to Rs 4050 crore as compared to Wednesday’s turnover of Rs 4417 crore.

Among the Sensex pack, 19 advanced while the rest declined.

Reliance Communication was the top gainer, up 3.54% to Rs 463.40, on a volume of 22.67 lakh shares. It moved in a broad range of Rs 439 – 466.

Reliance Energy (up 2.52% to Rs 527), Tata Motors (up 3.13% to Rs 862.10) and Bajaj Auto (up 2.22% to Rs 2565) edged higher.

Index heavyweight Reliance Industries (RIL) gained 1.06% to Rs 1,261.80 on a volume of 7.38 lakh shares. Recently, RIL and its partner Niko Resources, discovered oil in the hydrocarbon rich Krishna-Godavari basin. The two have discovered a column of gas condensate of 170 m and 24 m of oil-bearing hydrocarbons. RIL has 90% stake in the block and Niko 10%. It moved in a range of Rs 1243.15 – 1270.

Maruti Udyog rose 0.43% to Rs 927 after reports that the Cabinet Committee on Economic Affairs (CCEA) approved the sale of the government's residual 10.2% stake. Japanese car giant Suzuki has a majority 54.2% stake in the company. The government's stake in Maruti is valued at Rs 2,800 crore at the current market price.

Gujarat Ambuja Cements was the top loser, down 1.25% to Rs 132.55, on a volume of 3.50 lakh shares.

PSU oil exploration major ONGC lost 0.91% to Rs 851. Reports say it has struck gas in Mahanandi, which may contain 3 - 4 trillion cubic feet natural gas.

Banking stocks witnessed selling pressure. ICICI Bank (down 0.72% to Rs 853), State Bank of India (down 0.52% to Rs 1210), and HDFC Bank (down 0.75% to Rs 1010) edged lower.

Tech Mahindra was the most active counter on BSE with total turnover of Rs 358.36 crore followed by Indiabulls Financial Services (Rs 335.05 crore) and United Spirits (Rs 290.54 crore).

A huge block deal of 30.28 lakh shares was struck on United Spirits counter at Rs 880 per share by 11:37 IST. The counter was up 1.30% to Rs 885.20 on total volume of 32.98 lakh shares.

The Nikkei average rose 0.22% on Thursday, edging higher above 17,000 as exporters rose on a softer yen and steel stocks such as Sumitomo Metal Industries Ltd. gained on hopes for a further industry shake-up. The Nikkei was up 36.79 points at 17,047.83.

Hang Seng index was down 0.09% at 19,222.84. European markets were trading on a mixed note.

US stocks edged lower on Wednesday in light trading as a disappointing outlook from FedEx Corp pulled down transport stocks and off set the positive influence of the latest round of proposed takeovers. The Dow Jones industrial average dipped 7.45 points, or 0.06%, to end at 12,463.87, while the Standard & Poor's 500 Index edged down 2.02 points, or 0.14%, to finish at 1,423.53. The Nasdaq Composite Index fell 1.94 points, or 0.08%, to close at 2,427.61.

As per provisional data, FIIs were net sellers to the tune of Rs 354 crore on Wednesday (20 December). They were net buyers to the tune of Rs 270 crore in index-based futures and Rs 152 crore in individual stock futures on that day.

Crude oil climbed to a three-month high in New York after a government report showed that US inventories dropped more than expected and imports fell, signaling that OPEC is acting on its pledge to trim output. Crude oil for February delivery rose 26 cents, or 0.4%, to $63.72 a barrel on the New York Mercantile Exchange, the highest close for the contract nearest expiration since 18 September

Update 1: Markets Flat!

The BSE Sensex stayed range-bound in the afternoon, after a bout of volatility earlier.

At 12:28 IST the Sensex was up 5.57 points, at 13,345.73. It had opened lower, and slipped to an intra-day low of 13,182.35 as selling continued. Here, the benchmark index found support, and struck an intra-day high of 13,361.30 by 11:07 IST.

The market-breadth was strong on BSE, as buying for small-cap and midcap stocks continued. Against 1,343 shares that advanced on BSE, 996 declined. As many as 89 remained unchanged. Gainers outpaced losers by a ratio of 1.3:1.

The total turnover on BSE amounted to Rs 2,066 crore.

Among the 30-Sensex pack, 17 decline while the rest advanced.

Reliance Communication was the top gainer, up 2.15% to Rs 457.15, on a volume of 9.42 lakh shares.

Reliance Energy (up 1.75% to Rs 523), Tata Motors (up 1.63% to Rs 849.55) and Bajaj Auto (up 0.71% to Rs 2,527) followed.

Index heavyweight Reliance Industries (RIL) gained 0.56% to Rs 1,255.65 on a volume of 3.16 lakh shares. Recently, RIL and its partner Niko Resources, discovered oil in the hydrocarbon rich Krishna-Godavari basin. The two have discovered a column of gas condensate of 170 m and 24 m of oil-bearing hydrocarbons. RIL has 90% stake in the block and Niko 10%.

State-run engineering firm Bharat Heavy Electricals (Bhel) rose 0.30% to Rs 2,285, after it bagged an order worth Rs 165 crore from Indian Oil Corporation for a power generation unit.

ONGC was the top loser, down 1.02% to Rs 850, on a volume of 1.08 lakh shares. Reports say, it has struck gas in Mahanandi, which may contain 3 - 4 trillion cubic feet natural gas.

Satyam Computers (down 0.96% to Rs 454) and L&T (down 0.78% to Rs 1397.90) were the other losers.

Telecom software firm Tech Mahindra jumped 20% to Rs 1,492.55, on high volumes of 19.93 lakh shares, with pending buy order of 47,309 shares on BSE. It has also signed a $ 1 billion contract with British Telecoms (BT), the validity of which is for over five years.

Power transmission equipment firm KEC International rose 3% to Rs 357, a day after it secured orders worth Rs 151 crore. Three of these are for setting up transmission lines in the United Arab Emirates, and one for transmission lines in Ghana, the company said in a statement.

Dishman Pharmaceuticals & Chemicals rose 3.30% to Rs 232.50, after it announced a joint venture in Saudi Arabia with Takamul Investments Holding Company (Takamul), a group company of Capital Advisory Group for manufacturing hospital disinfectant formulations, anti-cancer drug formulations and dry powder inhaler (DPI).

Asian markets were mostly subdued, as they took a breather after a strong rebound in the previous session.

US stocks edged lower on Wednesday in light trading as a disappointing outlook from FedEx Corp pulled down transport stocks and offset the positive influence of the latest round of proposed takeovers. The Dow Jones industrial average dipped 7.45 points, or 0.06%, to end at 12,463.87, while the Standard & Poor's 500 Index edged down 2.02 points, or 0.14%, to finish at 1,423.53. The Nasdaq Composite Index fell 1.94 points, or 0.08%, to close at 2,427.61.

As per provisional data, FIIs were net sellers to the tune of Rs 354 crore on Wednesday (20 December). They were net buyers to the tune of Rs 270 crore in index-based futures and Rs 152 crore in individual stock futures on that day.

Crude oil climbed to a three-month high in New York after a government report showed that US inventories dropped more than expected and imports fell, signalling that OPEC is acting on its pledge to trim output. Crude oil for February delivery rose 26 cents, or 0.4%, to $63.72 a barrel on the New York Mercantile Exchange, the highest close for the contract nearest expiration since 18 September.

Soros Speak

According to Economic Times, George Soros, world’s most successful speculator, said that steps should be taken to ensure that Indian markets do not get overheated. “Markets clearly are heated, but I can’t say if it’s overheated or not. India is the flavour of the month, but flavours are not everlasting,” he said.

How true it is. Though Indian scene is good, it is definitely overheated & it is our advice to our readers to make sure that they keep on booking gains. Stay invested in the market but pick solid scripts & keep on booking gains.

Volatility checks in

The market settled in the red after witnessing high volatility throughout the day’s trading session, moving between positive and negative zone.

The Sensex settled 41.80 points lower at 13,340.21. It swung sharp 335 points for the day from an intra-day low of 13232.56 and intra-day high of 13568.09.

The S&P CNX Nifty lost 16.45 points to 3815.55

The total turnover on BSE amounted to Rs 3672 crore.

The market breadth was negative on BSE, as selling emerged for small-cap and mid-cap stocks. On BSE with 1465 shares declined as compared to 1094 that advanced. 83 remained unchanged.

Among the Sensex pack, 21 advanced while the rest declined.

Tata Steel was the top gainer, up 2.30% to Rs 465 on 15.75 lakh shares. It recovered from low of Rs 450.10. The stock advanced after Britain's takeover watchdog set a 30 January deadline on Tuesday for India's Tata Steel and Brazil's CSN to make revised offers for Anglo-Dutch steelmaker Corus Group.

Cipla (up 1.24% to Rs 244), Maruti Udyog (up 1.73% to Rs 925) and HDFC (up 1.97% to Rs 1580) followed.

Diversified conglomerate, ITC rose 1.13% to Rs 170.25 on 15.09 lakh shares after reports that it will expand its fruit and vegetable retail and wholesale business by opening 54 new outlets in select metros in next three years. The company would target metropolitan cities for these wholesale-cum-retail stores. Currently, there are 6,500 e-Choupal kiosks in over 38,000 villages in nine states.

PSU engineering company Bhel settled 0.46% lower at Rs 2276.10 on volume of 3.28 lakh shares after touching a low of Rs 2232. It had lost close to 10% in the past two trading sessions.

Tata Motors was the top loser, down 3.22% to Rs 835.10 on 5.46 lakh shares. It had hit a high of Rs 880.40 in early trade

HLL (down 3.14% to Rs 217.70), Grasim (down 2.29% to Rs 2655) and HDFC Bank (down 1.82% to Rs 1019) edged lower.

Index heavyweight Reliance Industries (RIL) finished 0.24% lower at Rs 1250.10 on high volumes of 13.29 lakh shares. It had recovered from low of Rs 1231.15.

Volatility is expected to remain high in the next few days ahead of expiry of December 2006 derivatives contracts next Thursday (28 January).

The near term trigger for domestic bourses is Q3 December 2006 results. Market men expect December 2006 quarter to be another strong quarter in terms of earnings growth. The Q3 results would start trickling in from about 12 January 2007.

Thailand will exclude equities investments from a central bank measure aimed at curbing speculation in the Baht, Thailand’s Finance Minister Pridiyathorn Devakula said on Tuesday after the stock market suffered its worst fall in 16 years.

Asian markets were trading with gains. The Nikkei share average topped 17,000 for the first time in seven months on Wednesday as shares of Toyota Motor Corp. and other exporters gained after the yen fell to a record low against the euro and neared a one-month low against the dollar. The Nikkei 225 index was up 1.40% at 17,011.04, breaking above 17,000 for the first time since 11 May.

Hang Seng index was up 1.45% to 19,240.12

European markets also opened positive, with Spain’s Madrid General being exception. The FTSE 100 index gained 0.44%.

FIIs were net sellers in three out of four trading sessions from 13 December to 18 December and that weighed on market sentiment. Their net outflow was Rs 182.70 crore on 18 December. As per provisional data, FIIs were net sellers to the tune of Rs 823 crore on Tuesday (19 December). They were also net sellers to the tune of Rs 831 crore in index-based futures on that day.

The Dow Jones industrial average finished at a record high on Tuesday, spurred by a rise in oil prices that boosted shares of Exxon Mobil Corp. But the Nasdaq fell as technology stocks dropped after disappointing financial results from industry bellwether Oracle Corp. The Dow Jones industrial average rose 30.05 points, or 0.24%, to end at a record 12,471.32. The Standard & Poor`s 500 Index advanced 3.07 points, or 0.22%, to finish at 1,425.55. But the Nasdaq Composite Index slipped 6.02 points, or 0.25%, to close at 2,429.55.

Oil continued to trade above $63 a barrel Wednesday with slight fluctuations as traders awaited a weekly report that was expected to show a drop in U.S. oil inventories. Light sweet crude for February delivery was down 15 cents at $63.31 a barrel in electronic trading on the New York Mercantile Exchange. At London's ICE Futures exchange, oil prices also moved slightly lower, with Brent crude for February delivery down 17 cents to $62.64 a barrel.

Holding firm!

The market held firm in afternoon trade. At 13:39 IST, Sensex was up 111 points at 13,493.01. It had slipped to an intra-day low of 13232.56, while its intra-day high is at 13568.09. It has swung sharp 335 points for the day.

The market is witnessing high volatility today, swinging wildly either ways.

The total turnover on BSE amounted to Rs 2136 crore.

The market breadth turned positive on BSE, after the initial weakness as buying resumed for small-cap and mid-cap stocks. On BSE with 1250 shares advancing as compared to 1135 that declined. 108 remained unchanged.

Among the Sensex pack, 20 advanced while the rest declined.

Tata Steel was the top gainer, up 2.34% to Rs 465.20 on 8.28 lakh shares. It recovered from low of Rs 450.10. The stock advanced after Britain's takeover watchdog set a 30 January deadline on Tuesday for India's Tata Steel and Brazil's CSN to make revised offers for Anglo-Dutch steelmaker Corus Group.

PSU oil exploration major ONGC advanced 2.20% to Rs 865.15 on 3.08 lakh shares.

ACC (up 2.06% to Rs 1038.75), ITC (up 1.72% to Rs 171.25) and Infosys (up 1.57% to Rs 2189) followed.

PSU engineering company Bhel recovered smartly from a low of Rs 2232 and was up 1.05% to Rs 2310 on 2.38 lakh shares. It had lost close to 10% in the past two trading sessions.

HDFC Bank was the top loser, down 1.72% to Rs 1020 on 43851 shares. It had hit a high of Rs 1047 in early trade

Hero Honda (down 1.32% to Rs 742.90), Tata Motors (down 1.14% to Rs 853) and HLL (down 1% to Rs 222.50) edged lower.

Index heavyweight Reliance Industries (RIL) recovered from low of Rs 1231.15 and was now up 0.32% to Rs 1257.05 on 7.80 lakh shares.

Four Soft jumped 6.53% to Rs 72.60 on high volumes of 11.24 lakh shares on reports that it has acquired Denmark's Transaciom Holdings for $10 million.

Peninsula Land dropped 5.30% to Rs 647 after the company priced placement of shares with qualified institutional buyers at Rs 600 a share, a discount of 12% to Tuesday's closing price of Rs 683.05.

Volatility is expected to remain high in the next few days ahead of expiry of December 2006 derivatives contracts next Thursday (28 January).

The near term trigger for domestic bourses is Q3 December 2006 results. Market men expect December 2006 quarter to be another strong quarter in terms of earnings growth. The Q3 results would start trickling in from about 12 January 2007.

Thailand will exclude equities investments from a central bank measure aimed at curbing speculation in the Baht, Thailand’s Finance Minister Pridiyathorn Devakula said on Tuesday after the stock market suffered its worst fall in 16 years. The news sent Thailand’s stock market up 8.8% at the open on Wednesday.

All the Asian markets were trading with gains. The Nikkei share average topped 17,000 for the first time in seven months on Wednesday as shares of Toyota Motor Corp. and other exporters gained after the yen fell to a record low against the euro and neared a one-month low against the dollar. The Nikkei 225 index was up 1.40% at 17,011.04, breaking above 17,000 for the first time since 11 May.

Hang Seng index was up 1.23% to 19,198.05

FIIs were net sellers in three out of four trading sessions from 13 December to 18 December and that weighed on market sentiment. Their net outflow was Rs 182.70 crore on 18 December. As per provisional data, FIIs were net sellers to the tune of Rs 823 crore on Tuesday (19 December). They were also net sellers to the tune of Rs 831 crore in index-based futures on that day.

The Dow Jones industrial average finished at a record high on Tuesday, spurred by a rise in oil prices that boosted shares of Exxon Mobil Corp. But the Nasdaq fell as technology stocks dropped after disappointing financial results from industry bellwether Oracle Corp. The Dow Jones industrial average rose 30.05 points, or 0.24%, to end at a record 12,471.32. The Standard & Poor`s 500 Index advanced 3.07 points, or 0.22%, to finish at 1,425.55. But the Nasdaq Composite Index slipped 6.02 points, or 0.25%, to close at 2,429.55.

US crude oil for January delivery rose 94 cents, or 1.5 percent, to settle at $63.15 a barrel on the New York Mercantile Exchange on Tuesday. The rise in oil prices was attributed to expectations that US crude inventories fell in the past week due to shipping delays along the coast of the Gulf of Mexico. US oil inventory data will be released on Wednesday

ITC plans 54 Choupal Fresh horticulture stores

Diversified conglomerate, ITC on Tuesday said it will expand its fruit and vegetable retail and wholesale business by opening 54 new outlets in select metros in next three years.

"We will set up 54 Choupal Fresh stores in next three years," ITC Chairman Y C Deveshwar said here.The company would target metropolitan cities for these wholesale-cum-retail stores.ITC has 3-4 Choupal Fresh operating in Hyderabad and Pune. The first one opened in August this year in Hyderabad.

ITC's urban warehousing and cold chain infrastructure focuses on stocking fresh horticulture produce like fresh fruits and vegetables. The company has also set up a complete cold chain for ensuring the availability of fresh products in the market, besides direct linkages with farmers for sourcing farm fresh produce.

The emphasis of the stores is on improving the quality and productivity of domestic horticulture products through ITC good agricultural practices as opposed to relying on importer products.

Moreover, the company plans to increase the number of its rural malls 'Choupal Saagars' by nine in next six months.'Choupal Saagars' are rural hypermarkets, which provides multiple services under one roof. It creates a platform for the farmers to sell their produce directly and get immediate payment.

Farmers can also buy quality product for their farm and household consumption from 'Choupal Saagars' and have services of soil testing, banking, insurance, medical facilities and restaurants. Currently the company has 11 such rural malls in Maharashtra, Uttar Pradesh and Madhya Pradesh.

The company plans to set up one 'Choupal Saagar' for 40 e-Choupals in synergistic combination to serve as the core infrastructure to support ITC's rural distribution strategy.

E-Choupal, are internet-kiosks, from where the farmers can download information in their local language on weather, market prices and scientific farm practices. They can also facilitate sale of farm inputs and purchase farm produce at these kiosks.
The nine 'Choupal Saagars' are supposed to spread to other e-Choupal states of Haryana, Uttaranchal, Karnataka, Kerala, Rajasthan and Andhra Pradesh.Currently, there are 6,500 e-Choupal kiosks in over 38,000 villages in nine states.

Thai currency control measures to have limited impact on domestic bourses

The market plunged today in a broad based decline in Asian markets after Thai central bank's currency controls heightened concern about emerging markets but market men see limited impact of the development for the domestic bourses.

The Thai situation is very localized and all the Asian markets would recover to levels that their fundamentals command individually and this shouldn’t take a long time, said Shaheena Mukadamm, head of research, IDBI Capital Market.

The Thai development came at a time when the market sentiment was cautious after the provisional data showed substantial FII sales of Rs 369 crore on Monday (18 December), the day when Sensex had risen 116 points in volatile trade.

The current fall, in fact, offers a buying opportunity for medium term and long term investors, Mukadamm reckons. Sensex plunged 349 points or 2.5% today to settle at 13,382.01. Thailand’s central bank said international investors will have to pay a 10% penalty on funds withdrawn out of the country within a year.

The near term trigger for domestic bourses is Q3 December 2006 results. Market men expect December 2006 quarter to be another strong quarter in terms of earnings growth. The Q3 results would start trickling in from about 12 January 2007.

But volatility may remain high in the next few days ahead of expiry of December 2006 derivatives contracts next Thursday (28 January). At the beginning of today’s trading session, the market wide open interest in derivatives was about Rs 52500 crore.

FII activity is likely to be muted till the end of this month, as foreign fund managers will be on vacation for Christmas and New Year.Technical analysts feel that the Nifty has a strong support at 3,700 and Sensex at 12,800-12,900.

Topsy turvy

The BSE Sensex settled with sharp losses after rallying for the past four consecutive sessions, on intense selling pressure.

It had plunged around 500 points in mid afternoon trades on intense selling pressure to touch an intra-day low of 13237.39, but recovered as value buying emerged at lower levels.

The 30-shares BSE Sensex ended with sharp 349.08-point (2.54%) fall at 13,382.01. Its high for the day was at 13748.62. It oscillated sharp 511.23 points during the day, with high volatility.

The S&P CNX Nifty lost 96.75 points (2.46%) to 3832.

Thai stocks plunged the most in 16 years, triggering declines across Asia's emerging markets, after the central bank said international investors will have to pay a 10% penalty on funds withdrawn out of the country within a year. The new rules, announced yesterday by central bank Governor Tarisa Watanagase, are aimed at stemming a 16% gain in the Baht this year. The Thai currency had its biggest two-day decline since April 2005. Stocks from Malaysia, Indonesia and the Philippines also declined after the Thai central bank's currency controls heightened concern about emerging markets.

Back home, the data showing substantial FII sales on Monday (18 December) also dampened the sentiment today.

The total turnover on BSE amounted to Rs 4114 crore.

Market breadth was negative on BSE, with 1.8 losers for every gainer, as selling pressure emerged for small-cap and mid-cap stocks. On BSE, 1641 shares declined as compared to 919 that advanced. 69 remained unchanged.

All the Asian markets were trading with losses except China’s Shanghai Composite, which was up 1.36%. Japanese stocks declined for the first time in seven days, led by brokerages such as Daiwa Securities Group Inc., after the nation's securities watchdog recommended Nikko Cordial Corp. be fined because of false earnings statements. The Japanese Nikkei 225 index was down 1.09% while the Hang Seng index lost 1.19%. The Bank of Japan today kept interest rates unchanged at 0.25%.

Among the 30-member Sensex pack, 29 declined while Hero Honda (up 0.89% to Rs 757) was the lone gainer.

PSU engineering major Bhel was the top loser, down 5.39% to Rs 2262.35 on 6.40 lakh shares. It had lost 4.21% on Monday (18 December). Market men attribute this fall to likely loss of equipment orders for the upcoming ultra mega power projects the bids for which were opened on Monday. According a report by domestic brokerage, Bhel’s cost competitiveness for supercritical equipment comes under question given the large disparity in bid prices between the lowest bidder, Lanco (at Rs 1.19 per unit) and NTPC (at Rs 2.1/unit). Reports suggest that Lanco had tied up with Chinese equipment supplier Dongfang, while NTPC had tied up with Bhel for ultra mega power project.

NTPC slumped 5.05% to Rs 133.60 on high volumes of 26.17 lakh shares. The stock moved in a range of Rs 132.70 –142.

Reliance Communications (down 4.80% to Rs 445.45), L&T (down 4.21% to Rs 1410) and ACC (down 3.82% to Rs 1013) were the other losers.

Index heavyweight Reliance industries (RIL) was down 3.20% to Rs 1248 on 17.42 lakh shares notwithstanding reports that Reliance Industries and its partner Niko Resources have discovered huge oil in the hydrocarbon rich Krishna-Godavari basin. It had slipped to a low of Rs 1231.

Tata Steel lost 3.23% to Rs 452.30 on 13.02 lakh shares. It had advanced to a high of Rs 475 following reports the UK Takeover Panel is putting the Corus deal on the fast track by planning to auction Anglo-Dutch steel company to the two rival suitors Tata Steel and Brazil’s CSN.

Reliance Industries (RIL) was the most active counter on BSE with turnover of Rs 219.19 crore followed by Bhel (Rs 147.55 crore) and Tech Mahindra (Rs 128.12 crore).

Madhucon Projects was down 6.81% to Rs 294 on high volumes of 12.07 lakh shares. The counter saw three block deals which were (3.54 lakh shares at Rs 320 per share), (4.42 lakh shares at Rs 305 per share) and (2.98 lakh shares at Rs 303 per share).

As per provisional data, FIIs were net sellers to the tune of Rs 369 crore on Monday (18 December), the day when Sensex had risen 116 points in volatile trade. Their net outflow was Rs 46 crore on Friday 15 December, the day when Sensex had risen 127 points.

FIIs were net buyers to the tune of Rs 307 crore in index-based futures on Monday. They were net sellers to the tune of Rs 26 crore in individual stock futures on that day.

US stocks fell on Monday as investors locked in profits after tumbling oil prices hurt energy shares such as Exxon Mobil Corp., overshadowing gains earlier in the session on news of at least $82 billion in corporate takeovers. The Dow Jones industrial average was down 4.25 points, or 0.03 percent, to end at 12,441.27. The Nasdaq Composite Index was down 21.63 points, or 0.88 percent, to close at 2,435.57.

Oil prices were steady on Tuesday as the market gauged the impact of its biggest slide in a month the day before. On Monday, prices dropped 1.9% as forecasts about warmer-than-normal U.S. weather countered last week's gains. It was the biggest dollar and percentage drop for the front-month contract since 16 November.

Tuesday, light sweet crude for January delivery dropped a penny to US$62.20 a barrel in midday Asian electronic trading on the New York Mercantile Exchange.

Update 3

Sensex down about 200 points
The Sensex remained weak and was down close to 200 points as selling pressure continued after the market had rallied for four consecutive sessions.

At 12:43 IST, Sensex was down 195.90 points at 13,535.19. It hit a fresh low of 13,480.23, a little while ago as selling intensified. It opened weak on Tuesday and started slipping till it touched a low of 13,600.21. It’s high for the day is at 13748.62. The latest data showing substantial FII sales on Monday (18 December) also dampened the sentiment.The total turnover on BSE amounted to Rs 1910 crore.

Market breadth was negative on BSE as selling pressure emerged for small-cap and mid-cap stocks. On BSE, 1284 shares declined as compared to 1101 that advanced. 65 remained unchanged.Among the Sensex pack, 26 declined while the rest advanced.

All the Asian markets were trading with losses except China’s Shanghai Composite which was up 0.98%. The Japanese Nikkei 225 index was down 1.09% while the Hang Seng index was 1.24%. The Bank of Japan today kept interest rates unchanged at 0.25%. Trading on the stock market in Thailand was halted today after the key benchmark index plunged 10%.

Lupin gains on US FDA nod for blood pressure drug
Lupin rose 2.4% to Rs 595 after the drug maker said it had received tentative approval from the US Food and Drug Administration for trandolapril, used in treating high blood pressure.16,897 shares changed hands in the counter on BSE.

The stock had surged over the past few days. From a recent low of Rs 530.80 on 12 December, it gained 9.3% in just 4 trading sessions to Rs 580.65 on 18 December.
The current price of Rs 595 discounts its Q2 September 2006 annualized EPS of Rs 29, by a PE multiple of 20.5.The company reported strong Q2 September 2006 results. It clocked 29% growth in net profit to Rs 58.30 crore for the quarter ended September 30, 2006, compared with Rs 45.19 crore in the corresponding period for the previous year. Net sales rose 21% to Rs 491.07 crore.

In late-2005, Lupin had forged a spate of alliances with Ranbaxy, GlaxoSmithKline (Philippines) and Aspen Pharma, respectively, to market its tuberculosis drugs

Lupin, which has established direct presence in the US with a wholly-owned subsidiary and a number of marketing alliances, has so far not explored the European markets in a big way.A few months back, Lupin decided not to pursue a memorandum of understanding (MoU) with Belgium's Artifex Finance CVA, to acquire a 51% stake in the latter.Lupin is a leading player in anti-TB, cephalosporins (anti-infectives) and cardiovascular drugs (prils and statins), and has a strong presence in diabetology and asthma. It has a programme for developing NCEs (new chemical entities) at its research and development centre in Pune.

Bhel trips
PSU power equipment major Bhel lost 4.4% to Rs 2285 due to likely loss of equipment orders for the upcoming ultra mega power projects the bids for which were opened on Monday.3.4 lakh shares changed hands in the counter on BSE.

According a report by domestic brokerage, Bhel’s cost competitiveness for supercritical equipment comes under question given the large disparity in bid prices between the lowest bidder, Lanco (at Rs 1.19 per unit) and NTPC (at Rs 2.1/unit) Sasan ultra mega power project. Reports suggest that Lanco had tied up with Chinese equipment supplier Dongfang, while NTPC had tied up with Bhel for ultra mega power project.

Lanco Power has won the financial bid through the international competitive bid (ICB) route for the Sasan Ultra Mega Power Project of 4000 MW capacity. In the fray were Tata Power, L&T, Reliance Energy, Essar Power and Sterlite Industries, NTPC, Torrent Power, Jindal Steel & Power, Jaiprakash Associates and Lanco.

Bhel scrip had lost 4.2% to Rs 2391.25 on Monday (18 December) following the news of NTPC not getting the Sasan ultra mega power projects order.

Analysts also feel that Chinese equipment suppliers will become a stronger force to reckon with in Indian market following Lanco’s winning of the bid for one of the ultra mega power projects.Bhel is a market leader in co-generation and captive power plants. As per recent reports, Bhel has readied Rs 10000 crore for takeovers in the US and Europe.Bhel reported a 38.3% growth in net profit for Q2 September 2006 to Rs 360.01 crore (Rs 260.16 crore). Total income (net of excise) rose 34% to Rs 3,511.04 crore (Rs 2,615.95 crore).

News

Hutch buy to jingle all the way for RCL
There are enough operational synergies between Reliance Communications (RCL) and Hutchison Essar (HEL), and the department of telecom’s merger guidelines also seem to favour this entity, an ET study shows. RCL has applied for licences to be a pan-India GSM player.

If it is able to buy Hutch, it will get an instant entry into 16 circles where Hutch operates and where it doesn’t offer services. This will help it cut down on the time needed to enter the market.As per the guidelines, the combined entity can’t hold more than 15 MHz of spectrum in Metro and A category circles and 12.4 MHz spectrum in B & C circles. RCL faces the spectrum regulatory issues only in two circles.

RCL’s GSM arm, Reliance Telecom, offers services in eight circles, of which it overlaps with HEL in West Bengal and Kolkata. HEL is not present in RCL’s other GSM circles — MP, North-East, HP, Bihar, Orissa and Assam.

The scenario will be different if another Indian player like Bharti Airtel enters the fray for Hutch. There are no indications that the New Delhi-based player is planning such a move. Bharti Airtel chairman Sunil Mittal has refuted talk that his company may bid for Hutchison Essar.

The DoT guidelines also stipulate that if an existing player (like Bharti or RCL) buys another operator in the same circle, it will have to limit ownership at 10% or buy the entire 100%. So, if Essar decides not to sell its stake despite a very good offer, then there’s nothing that the two can do.

Also, the market share of the combined entity should not exceed 67% in any circle. However, this will not be the case in any of the 23 circles for RCL.

Idea likely to make pre-IPO placement of Rs 375 crore
Idea Cellular, which is in the process of floating an initial public offer (IPO) is expected to make a pre-IPO placement of shares to promoters, employees of AV Birla group companies and high net worth individuals (HNIs). The private placement could be up to Rs 375 crore, which would be about 15% of the new equity to be issued for raising funds.

The price at which the placement would be done would be at par or higher than the maximum price of the price band for the IPO. The pre-IPO shares will have a lock-in period of one year from the date of allotment. Sources say that the pre-IPO placement would be done to ensure that the shareholding of the promoters is kept at a certain level, following the post-IPO dilution and to also issue shares of Idea Cellular to employees of other AV Birla companies.

Idea Cellular is raising Rs 2,500 crore for meeting its expansion needs. This would be scooped up through issue of new equity shares of the company. The equity would be issued though an IPO and may include a pre-IPO placement.

The fourth largest national GSM mobile service provider, has an authorised share capital of Rs 4,275 crore. Its paid-up share capital of Rs 2,742.5 crore comprises 225.9 crore equity shares of Rs 10 each and preference share capital of 483 redeemable cumulative non-convertible preference shares of Rs 1 crore each.

Idea Cellular is also in the process of raising the total foreign investment limit in the company to 74%. As per the FDI policy for telecom 74% is the maximum equity investment allowed for foreign investors in a telecom company, which includes both direct as well as indirect foreign investment through domestic investment entities.

As of mid-November, 2006 Idea Cellular had a direct foreign investment of 34.85% in the company. However, the total foreign investment including the indirect holding through its shareholders — Grasim Industries, Aditya Birla Nuvo and Hindalco Industries stood at 47.55%. The promoters — Aditya Birla group, which holds 65.15% stake in the company, would continue to be the majority shareholder after the IPO with more than 51% of the equity. Therein the single largest investor Aditya Birla Nuvo, a publicly-listed company, would hold more than 30% stake.

NASA, Google partner for cutting-edge research
NASA's Ames Research Center and Google have signed a Space Act agreement that formally establishes a relationship to work together on a variety of challenging technical problems ranging from large-scale data management and massively distributed computing to human-computer interfaces.
Click Here For Full Article

Update 2

Sensex extends fall
The BSE Sensex extended fall from opening session as selling pressure continued after the market had rallied for four consecutive sessions.

At 11:44 IST, Sensex was down 165.26 points at 13,565.83. It hit a fresh low of 13,550.51. It opened weak on Tuesday and started slipping till it touched a low of 13,600.21. It’s high for the day is at 13748.62. The latest data showing substantial FII sales on Monday (18 December) also dampened the sentiment.

The total turnover on BSE amounted to Rs 1303 crore.Market breadth was positive on BSE as buying continued for small-cap and mid-cap stocks. On BSE, 1227 share advanced as compared to 1010 that declined. 62 remained unchanged.Among the Sensex pack, 22 declined while the rest advanced.PSU engineering major Bhel was the top loser, down 3.84% to Rs 2299.50 on 2.04 lakh shares.

Tata Steel strengthens
Tata Steel rose 1.4% to Rs 473.95 following reports the UK Takeover Panel is putting the Corus deal on the fast track by planning to auction Anglo-Dutch steel company to the two rival suitors Tata Steel and Brazil’s CSN.3.3 lakh shares changed hands in the counter on BSE.

After witnessing a heavy battering due to concerns arising from the bidding war for Corus, the Tata Steel scrip had staged a rebound from lower level on market talks it may pull out of the bid for Corus. From Rs 435.65 on 13 December 2006, the stock surged to Rs 467.40 by 18 December. Earlier, the scrip had tumble to Rs 435.65 on 13 December from a recent high of Rs 492.90 on 5 December.

The reason why the UK Takeover Panel is mulling an early end to the Corus battle is because it reckons that a long drawn battle will impact Corus’ business and shareholders, reports suggest. Recently, Brazil's CSN offered 515 pence-a-share cash-bid to counter Tata Steel's revised bid of 500 pence per share. At the time of revising the Corus bid, Tata Steel had said that Standard Chartered Bank and Standard Chartered First Bank Korea would provide for additional funding for its new offer of 500 pence

Tata Steel produced more than five million tonne in 2005-06, while Corus produced around 18 million tonne. Tata Steel is already one of the lowest cost producers of steel in the world.

Crew BOS Products gains on preferential issue
Crew BOS Products gained 3.74% to Rs 238.50, as buying continued for the second day in a row today.2.03 lakh shares changed hands on the counter on BSE.

The stock had surged 10% to Rs 229.90 on Monday (18 December) after it scheduled an extraordinary general meeting (EGM) on 8 January 2007, to consider allotment of up to 12.50 lakh convertible warrants, on a preferential basis, to promoters and investors, with an option to convert them into equity shares of Rs 10 each against one warrant at the exercise price of Rs 178.

The board will also seek shareholders’ consent for raising $ 25 million in domestic/international markets through various routes.The stock witnessed a steady rise over the past few days - from Rs 197.70 on 12 December to Rs 229.90 on 18 December, ahead of the announcement.Recently, RBI raised FII-ceiling to 49% in Crew BOS Products. FII-holding in the company was 21.4% at end September 2006.

ABG Shipyard extends gain on new order win
Private shipyard ABG Shipyard rose 3.5% to Rs 238.25 as the stock rose for the second day in a row after it secured an order for construction of a vessel at a price of euro 16.54 million (about Rs 100 crore) from Vroon Offshore, The Netherlands.1.09 lakh shares changed hands in the counter on BSE.

The announcement of the order win from the Dutch firm had lifted the scrip 2.6% on Monday (18 December) to Rs 230.10. Earlier, the scrip had witnessed a sustained fall since mid-November 2006. From Rs 272.35 on 13 November, the stock had declined to a low of Rs 211.15 on 12 December. From that low, it had recovered to Rs 224.25 by 15 December.

With the latest order win, the company’s total order book has risen to about Rs 2400 crore. This is the highest amongst the private sector shipyards in India. These orders are expected to be executed by the end of FY 2009.

ABG Shipyard’s new facility at Dahej is expected to be commissioned in FY 2009. The facility will consist of two dry docks capable of accommodating eight bulk carriers up to a maximum weight of 1,20,000 Dead Weight Tonne (DWT). The company is also expected to leverage this facility to build jack up rigs as there is demand in E&P activities worldwide, reports suggest.

Update 1

Sensex drifts lower on weak Asian markets
The market drifted lower in early volatile trade tracking weak Asian markets and data showing substantial FII sales on Monday (18 December).At 10:20 IST, Sensex was down 121 points at 13,609. It hit a low of 13,600.21.BSE clocked a turnover of Rs 528 crore.

IT stocks edged lower following overnight fall in tech laden Nasdaq composite index. Infosys shed 1.5% to Rs 2188.95, Satyam Computer lost 1.2% to Rs 473, TCS shed 0.5% to Rs 1175 and Wipro lost 0.5% to Rs 579. Infosys ADR lost 2% on Monday to $53.64, Satyam Computer ADR shed 2.4% to $23.50 and Wipro ADR lost 0.7% to $15.65.

Reliance Industries lost 0.4% to Rs 1282.90 notwithstanding reports that Reliance Industries and its partner Niko Resources have discovered huge oil in the hydrocarbon rich Krishna-Godavari basin.

ONGC shed 0.5% to Rs 850 after Monday’s surge triggered by new of huge gas find by the company.

Sugar scrips have a ball on partial lifting of export ban
Sugar scrips surged after the Union Cabinet on Monday decided to allow sugar companies with export obligation under the Advance License (AL) scheme to undertake exports.However, it is not known when the companies can start their shipments. A notification to this effect is expected shortly

Venus Sugar jumped 15% to Rs 7.50, Sakthi Sugar rose 12% to Rs 115, Ugar Sugar Works rose 14% to Rs 19, Dharani Sugar rose 9% to Rs 36, Balrampur Chini Mills added 9% to Rs 89.90, Dhampur Sugar rose 10% to Rs 98, Bajaj Hindustan gained 8% to Rs 245, Triveni Engineering rose 8% to Rs 55, and EID Parry added 6% to Rs 143.

Under AL scheme, companies have to re-export one tonne of white sugar against every 1.05 tonne of raw sugar imported within a period of two years.

On 4 July, the government had banned export of sugar till 31 March 2007 after the recommendation of the Cabinet Committee on Prices.

Fourth straight day of gains

Market extended its rally for the fourth straight day today, as buying momentum continued.

The BSE Sensex staged a smart recovery after plunging to an intra-day low of 13416.40, on strong buying demand for index pivotals, especially index heavyweight Reliance Industries (RIL). The buying interest intensified during the later half of the day’s trading session, taking the Sensex to a fresh intra-day high of 13744.17.

The 30-shares BSE Sensex settled 116.57 points higher at 13,731.09. It had opened 81.08 points higher at 13,695.60 as buying continued following 127-point rally on Friday (15 December).

The S&P CNX Nifty rose 40.10 points (1.03%) to 3928.75.The total turnover on BSE amounted to Rs 3772 crore compared to Friday’s Rs 4174 crore.

Market breadth turned positive, after initial weakness, as buying resumed for small-cap and mid-cap stocks. On BSE, 1321 shares advanced as compared to 1213 that declined. 79 shares remained unchanged. The BSE Small-Cap index closed 38 points higher (0.60%) to 6,706.62 while the BSE Mid-Cap index ended flat at 5,664.23.

The BSE Sensex has gained 736 points (5.66%) in four trading sessions from 12995.02 on 12 December as buying resumed after a sharp fall.Among the Sensex pack, 19 advanced while the rest declined.

PSU oil exploration major ONGC was the top gainer, up 4.44% to Rs 852.60 on high volumes of 9.30 lakh shares, following reports that it has made a huge gas find in the Bay of Bengal, with initial estimates suggesting reserves of about 21 trillion cubic feet. The stock had surged to a high of Rs 867.70 in early trade.

Pharma major Ranbaxy Laboratories advanced 4.27% to Rs 390.80 on 7.03 lakh shares. Ranbaxy Laboratories entered into a collaborative agreement with the Department of Science & Technology (DST), Government of India, New Delhi, in the area of New Drug Discovery Research (NDDR). Under the agreement, DST will provide financial support by way of soft loans to the company, to undertake NDDR activity.

Tata Motors gained 3.74% to Rs 889.90 after it said on Monday it had entered a joint venture with Thailand's Thonburi to make pick-up trucks. The joint venture will go on stream in a year's time. The joint venture will facilitate it to access the Thailand market, which is the 2nd largest pickup market in the world after the US. Both partners will jointly manage the operation.

Wipro (up 3.85% to Rs 586), TCS (up 2.41% to Rs 1184) and Hero Honda (up 1.74% to Rs 743.30) advanced.

PSU engineering major Bhel was the top loser, down 4.54% to Rs 2383 on 2.07 lakh shares. It moved in a broad range of Rs 2374–Rs 2523.

Reliance Energy (down 1.30% to Rs 533), ACC (down 0.83% to Rs 1050) and NTPC (down 1.82% to Rs 140.50) edged lower.

Index heavyweight Reliance Industries (RIL) surged 3.29% to Rs 1294.80 on 8.10 lakh shares. It had surged to a high of Rs 1297. It has paid advance tax of Rs 444 crore for the third installment taking its total remittance this fiscal to Rs 1102 crore compared to Rs 848 crore paid in the same period last year. There are reports that RIL is talking to Russian government officials to enter the country’s downstream oil sector by investing in the refinery and petrochemical industry. There are also unconfirmed reports that it had acquired Orient Craft, which is a leading garment exporter.

Zee Telefilms, settled at Rs 272.40 on volumes of 34.41 lakh shares. It listed on BSE after its restructuring at Rs 249. It moved in a broad range of Rs 249 – 297.80. It was last traded at Rs 341 on Friday (15 December). There are reports that Zee plans to raise Rs 900 crore via equity sale in Dish TV, WWIL once they are listed. According to the scheme of demerger approved by Bombay High Court, Zee Telefilms has demerged its cable undertaking into Wire & Wireless India (WWIL) and the regional and news broadcasting undertaking into Zee News (ZNL). Shareholders of ZTL would receive 45 shares of ZNL and 50 shares of WWIL for every 100 shares held in ZTL. Both companies would be listed independently. The listing is likely to take place in January 2007.

L.T. Overseas settled at slight discount at Rs 55 on high volumes of 54.13 lakh shares, compared to its IPO price of Rs 56 per share. The stock listed on BSE at 7.14% premium at Rs 60 and hit an intra-day high of Rs 62.90. Its intra-day low was Rs 51

The BSE Oil and Gas Index advanced 3% to settle at 6,151.24. GAIL (up 4.70% to Rs 258.65), IOC (up 1.08% to Rs 440.10) and BPCL (up 1.06% to Rs 328.70) advanced.

Tata Power Company jumped 6.73% to Rs 595.25 after reports that it had won a bid for building a 4,000 megawatt coal-fired plant at Mundra in western India.

Lanco Infratech added nearly 7% to Rs 261.70 following reports it had won the bid for a 4,000-megawatt power plant at Sasan in central India.

Glenmark Pharmaceuticals rose 2.89% to Rs 599.10 following reports it had received 25 million euros in up-front payment from Germany's Merck KGaA for development of a diabetes drug.

Ashok Leyland rose 1.55% to Rs 42.65 after it signed an agreement with Australia's Brehon Energy Plc for technology for use of hythane gas in its compressed natural gas engines. The technology would enable Ashok Leyland, to operate its 6-cylinder 'H' series of engines on hythane, a prepared blend of hydrogen and natural gas which cuts emissions further than CNG.

Hindustan Zinc lost 4.69% to Rs 852 after it cut zinc and lead prices by 0.35% and 0.22% respectively.

ABG Shipyard gained 2.74% to Rs 230.40 after the company bagged a Rs 100 crore order from Vroon Offshore for construction of a diving support vessel from Vroon Offshore B.V., With the latest order win, the company’s total order book has risen to about Rs 2400 crore, the company said.

UltraTech Cement jumped 5.20% to Rs 1075 on reports it had paid advance tax of Rs 96 crore for the third installment of 15 December 2006. The company’s tax provision in Q3 December 2005 was just Rs 20.35 crore.

Yokogawa India surged 7.24% to Rs 408, even as its Japanese parent said it is ready to offer a maximum Rs 380 per shares for its delisting. Yokogawa Electric Corp. Japan has 83.19% stake in Yokogawa India. On 16 December 2006, the board of Yokogawa India agreed the proposal received from the Japanese parent to delist its shares from the stock exchanges. The floor price for reverse book building is set at Rs 320 which is the average price of past 26 weeks.

Most Asian markets were little moved on Monday as traders awaited a Bank of Japan policy decision for clearer signals on the direction of Japanese interest rates. The central bank is expected to leave its key interest rate unchanged at 0.25%, so the focus will be on clues on future policy direction. The Bank of Japan's two-day meeting that ends on Tuesday.

Japan's Nikkei gained 0.28% or 47.80 points at 16,962.11 with investors buying exporters such as Honda Motor Co. Ltd. on a softer yen.

The Hang Seng index gained 0.43% or 81.70 points to 19,192.35

As per provisional figures, FIIs were net buyers to the tune of Rs 374 crore on Friday 15 December, the day when Sensex had risen 127 points.

FIIs were net buyers to the tune of Rs 128 crore in index-based futures and Rs 175 crore in individual stock futures on 15 December.

Meanwhile, RBI on 15 December came out with new capital market exposure norms for banks which would come into force from April 2007. In terms of the new guidelines, the exposure of a bank to the capital market cannot exceed 40% of its net worth as on 31 March of the previous year.

US stocks rose in heavy volume on Friday, pushing the Dow to a record as tame consumer prices reassured investors inflation was under control and economic growth was still strong enough to support profits. The Dow Jones industrial average gained 28.76 points, or 0.23%, to end at 12,445.52. The Standard & Poor's 500 Index added 1.60 points, or 0.11%, to finish at 1,427.09. The Nasdaq Composite Index rose 3.35 points, or 0.14%, to close at 2,457.20.

Oil prices fell in Asian trade on profit-taking after significant gains last week following OPEC's move to cut production further. New York's main contract, light sweet crude for January delivery, was down 26 cents to $63.17 a barrel from $63.43 in the United States on Friday.

Update 5

Polaris Software tops 'A' group
Polaris Software surged 8% to Rs 159.10 and it was the top gainer from BSE’s A group.
Software shares are attracting renewed buying after Oracle Corporation recently raised the open offer price for i-flex from Rs 1,475 per share to Rs 2,100 per share.

In October 2006, Polaris had reported strong Q2 September 2006 results. The company also has a strong order book. The company has transformed itself from being a pure software services provider to a hybrid model focussed on product-cum-services catering to the banking, financial services and insurance (BFSI) industry. Polaris Software’s consolidated net profit for quarter ended September 2006 jumped 104.3% to Rs 27.10 crore from Rs 13.26 crore during quarter ended September 2005. Total income rose 17.7% to Rs 253.95 crore (Rs 215.62 crore).

J&K Bank surged 7.7% to Rs 619 and it was the second biggest gainer from BSE’s A group. Recently RBI had raised FII investment ceiling in this private sector bank to 40% from 33%.

Lanco Infratech added nearly 7% to Rs 261.70 following reports it had won the bid for a 4,000-megawatt power plant at Sasan in central India. It was third biggest gainer from BSE’s A group.

Private sector utility Tata Power Company rose nearly 6% to Rs 591 following reports it had won a bid for building a 4,000 megawatts coal-fired plant at Mundra in western India. It was the fourth top gainer from A group.

Higher advance tax payment boosts RIL
Reliance Industries rose 3.2% to Rs 1294.80 following reports that it paid advance tax of Rs 444 crore for the third installment taking its total remittance this fiscal to Rs 1102 crore compared to Rs 848 crore paid in the same period last year.The higher advance tax payment raised expectations regarding its financial performance in for Q3 December 2006.8.1 lakh shares changed hands in the counter on BSE.

Reliance Industries (RIL) has a huge 11% weightage in Sensex. The barometer index rose 116.57 points today.The stock is now within striking distance of its lifetime closing high of Rs 1306.05 of 6 November 2006.

Last week, the government approved RIL’s plan for a $5.2 billion deep-sea gas field, which will pump 80 million cubic metres per day. The development plan envisages commencement of delivery of gas by second half of 2008/09. RIL had earlier planned to produce only 40 million cubic metres a day, but in November doubled the estimated output saying new discoveries and expectations of a surge in demand had encouraged the revision.

Lanco Infratech powers ahead on winning bid for 4000 MW power plant
Lanco Infratech surged 6% to Rs 260.70 following reports it had won the bid for a 4,000-megawatt power plant at Sasan in central India.This is one of the two ultra-mega power plants, the financial bids for which were opened today.The stock rose on heavy volume of 24.6 lakh shares on BSE.The scrip had debuted at Rs 241.40 on 27 November (closing price on BSE on that day) compared to IPO price of Rs 240. It moved between Rs 229 to Rs 266 since then. The IPO of Lanco Infratech was subscribed nearly 12 times.

Lanco Infratech is an infrastructure development company with interests in power, construction and property development. The company currently owns 11 power projects, of which five are in operation and six are under development. Its construction division had an order book of Rs 1611.83 crore on 30 September 2006. This includes contracts worth Rs 1229.95 crore with affiliates of Lanco Infratech. The entire order book will be executed by 2010.

Lanco Infratech is also obtaining approvals for a large integrated IT park and township on a 100-acre plot on which it proposes to develop 18.5 million square feet of saleable area in Manikonda, Hyderabad. The company also owns land banks, aggregating about 21.8 acres, close to Ocean Park in Hyderabad, where it intends to develop a residential housing project with one million square feet of saleable area. In addition, it has won a bid to develop an IT park and township on a 10.7-acre plot, on which it proposes to develop two million square feet of saleable area, in Vishakhapatnam, Andhra Pradesh.

Due to the nature of the business, Lanco Infratech’s projects typically require a long gestation period and substantial capital outlay before completion. It may be months or years before positive cash flows can be generated. Further, power, property development, and infrastructure and construction projects are capital intensive and will require high levels of debt financing. They will also lead to continuous dilution of equity.

Contingent liabilities of Lanco Infratech amounted to Rs 755.92 crore on 30 September 2006. Apart from these, the offtake of the Kodapalli power plant has resulted in court proceeding related to Rs 224-crore charges paid by the offtaker to Lanco Kodapalli Power (LKPPL). Lanco Infratech is in the process of raising its stake in LKPPL to 59% from current 33.9%.

Update 4

Sensex crosses 13,650
The BSE Sensex staged a smart recovery of about 260-points from its day’s low of 13416.40 on strong buying demand for index pivotals, especially index heavyweight Reliance Industries (RIL). Sensex is now trading above the 13,650 mark.

At 14:53 IST, Sensex was up 60.72 points at 13,674.40. It opened 81.08 points higher at 13,695.60 and advanced to hit an intra-day high of 13,725.67. But soon from here, it started declining, on intense selling pressure.The total turnover on BSE amounted to Rs 2912 crore.

Market breadth was negative, thought it had recovered sharply from initial weakness, as buying resumed for small-cap and mid-cap stocks. On BSE, 1266 shares declined as compared to 1227 that advanced. 69 shares remained unchanged. The BSE Mid-cap index was down 0.29% while the BSE Small-cap index was up 0.37%.Among the Sensex pack, 18 advanced while the rest declined.

US FDA nod for a generics drug boosts Ranbaxy
Ranbaxy gained 4.5% to Rs 392 after the company got the US Food and Drug Administration approved to sell Cefprozil in 250 mg and 500 mg tablets.5.5 lakh shares changed hands in the counter on BSE. The news had lifted the scrip 1.1% on Friday (15 December) to Rs 375.10.

Ranbaxy had drifted lower since late September 2006. From Rs 439.85 on 29 September, the stock had slipped to a low of Rs 359.65 on 12 December. It had recovered to Rs 375.10 by 15 December.

Earlier, the stock had staged a rebound from lower level between mid-July 2006 to late September 2006. From Rs 320.40 on 17 July, the stock had surged to Rs 439.85 on 29 September 2006. Ranbaxy Pharmaceuticals will manufacture and market the tablet form of a drug used to treat infections associated with bronchitis and tonsillitis. The Food and Drug Administration approved Ranbaxy's plans to sell Cefprozil in 250 mg and 500 mg tablets. In June, the FDA approved Ranbaxy's plans to manufacture and market Cefprozil in liquid form.

The drug is the equivalent of Bristol Myers Squibb's Cefzil. The market for Cefzil and Cefprozil tablets is estimated at $77 million annually. The tablets will be manufactured at Ranbaxy's plant in Dewas, India. "Our plans are to bring this product to the market in early 2007 during the height of the respiratory season," said Jim Meehan, vice president of sales and marketing for Ranbaxy.

UltraTech Cement cements gains
UltraTech Cement jumped 5% to Rs 1075.50 on reports it had paid advance tax of Rs 96 crore for the third installment of 15 December 2006.The company’s tax provision in Q3 December 2005 was just Rs 20.35 crore.50,839 shares changed hands in the counter on BSE.The news of large advance tax payment by the company which hit the market during trading hours on Friday (15 December) had lifted the scrip nearly 3% on that day.

For about two months between late September to late November, the stock was quite range bound. It moved between Rs 865 to Rs 919 during that period. It had firmed up to Rs 958.30 on 7 December from Rs 887.45 on 28 November. It had slipped to a low of Rs 923.60 on 13 December, before bouncing back to Rs 1021.95 by 15 December.

UltraTech Cement's strategies in captive power investment and various efficiency improvement programmes including de-bottlenecking and ready mix concrete plants could drive operating profit margins by the end of this financial year, analysts reckon.

The company has marked capital expenditure of Rs.2698 crore to be spent over the next three years. This includes setting up of captive power plants aggregating to 192 MW at its units in Gujarat, Chhattisgarh, Andhra Pradesh and a brownfield expansion of four million tones per annum at Andhra Pradesh.

Update 3

Sensex crawls to positive zone
The BSE Sensex staged a smart recovery of close to 200-points from its day’s low of 13416.40 on strong buying demand, and is now back in the positive territory.

At 13:33 IST, Sensex was up 10.81 points at 13,625.33. It opened 81.08 points higher at 13,695.60 and advanced to hit an intra-day high of 13,725.67. But soon from here, it started declining, on intense selling pressure.

The total turnover on BSE amounted to Rs 2307 crore.Market breadth was negative, thought it had recovered from initial weakness, as buying resumed for small-cap and mid-cap stocks. On BSE, 1251 shares declined as compared to 1172 that advanced. 74 shares remained unchanged.Among the Sensex pack, 16 declined while the rest advanced.

PSU oil exploration major ONGC was the top gainer, up 4.30% to Rs 851.45 on high volumes of 6.95 lakh shares, following reports that it has made a huge gas find in the Bay of Bengal, with initial estimates suggesting reserves of about 21 trillion cubic feet. The stock had surged to a high of Rs 867.70 in early trade.

Zee Telefilms begins new inning
Demerged Zee Telefilms was trading at Rs 271.50 in afternoon trade, under a new name Zee Entertainment Enterprises, compared to Friday’s closing price of the combined entity at Rs 341.29.9 lakh shares changed hands in the counter on BSE.

The stock had surged ahead of the demerger. From Rs 292.05 on 16 October 2006, the scrip had surged to Rs 378.30 on 1 December. It had slipped to Rs 341 by 15 December – the last day of trading of the combined entity.

Zee Telefilms (ZTL) has formally demerged the company into three entities effective December 18, after it received Bombay High Court approval for the split. ZTL demerged its cable distribution subsidiary into Wire & Wireless India (WWIL) and its regional and news broadcasting undertaking into Zee News (ZNL). The company is also demerging its direct consumer business undertaking. Shareholders of ZTL would receive 45 shares of ZNL and 50 shares of WWIL for every 100 shares they hold in ZTL. Both companies would be listed independently. The listing is likely to take place in January 2007.

The company had earlier announced the book closure date from December 24 to 28, 2006, for determining eligibility for issuance of equity shares of demerged entities ZNL and WWIL. The company will announce a separate record date for the demerger of its direct consumer business into ASC Enterprises, which will be renamed as Dish TV India.Zee’s demerger scheme is aimed at unlocking shareholders’ value.

News

Reliance Comm dials banks for Hutch deal
Reliance Communications (RCL) is believed to have initiated moves to strike exclusivity agreements with leading foreign banks as part of its efforts to buy 100% of Hutch-Essar, India’s thirdlargest GSM operator, people close to the development told ET.
Click Here To Read Full Article

RIL may tie up with Gazprom for Russia
Private sector energy major Reliance Industries (RIL) is considering expanding its oil business to the land of the Volga and Vodka. It is talking to Russian government officials to enter the country’s downstream oil sector by investing in the refinery and petrochemical industry.
Click Here To Read Full Article

Zee to grow five times at Rs 11,000 cr in 4 years
Media and entertainment giant Zee group would grow over five times to Rs 11,000 crore in four years ending March 2011 as a result of restructuring of the flagship company Zee Telefilms, Chairman Subhash Chandra said on Sunday.
Click Here To Read Full Article

IVRCL Infra raises Rs 555cr for expansion
IVRCL Infrastructures & Projects has raised about Rs 555 crore via a private placement to qualified institutional buyers (QIB), by offering 150 lakh new equity shares at Rs 370 per share.

Update 2

Sensex regains further ground
The BSE Sensex staged a smart recovery on strong buying support for the index pivotals at lower level and is now above the 13550 mark. Earlier during the day, it had plunged close to 200 points to touch an intra-day low of 13416.40

At 12:39 IST, Sensex was up down 47.06 points at 13,567.46. It opened 81.08 points higher at 13,695.60 and advanced to hit an intra-day high of 13,725.67. But soon from here, it started declining, on intense selling pressure.

The total turnover on BSE amounted to Rs 1765 crore.Market breadth was negative, thought it had recovered from initial weakness, as buying resumed for small-cap and mid-cap stocks. On BSE, 1304 shares declined as compared to 1025 that advanced. 74 shares remained unchanged.Among the Sensex pack, 18 declined while the rest advanced.

Tata Motors revs up
Tata Motors rose 1.6% to Rs 871.80 after the company said on Monday it had entered a joint venture with Thailand's Thonburi to make pick-up trucks.1.6 lakh shares changed hands in the counter on BSE.The stock had recovered from lower level in the past three days following a broad market recovery. From Rs 820.50 on 12 December, the scrip had surged 4.5% to Rs 857.80 by 15 December. Earlier, the stock had lost 8% in three days when Sensex had plunged 977 points.

Tata Motors will hold 70 percent of the venture with Thonburi, which assembles automobiles. The pick-up trucks will be made at Thonburi's facility in Thailand and will be sold locally and exported to other markets in the region. Production will start in a year's time, Tata Motors said in a statement. No financial details were disclosed. "The joint venture will enable the company to address the Thailand market, the second-largest pick-up market in the world after the US," Tata Motors said.

Last week Tata Motors said its joint venture with Fiat will invest Rs 4,000 crore in a car and engine making facility at Ranjangaon, Pune. The Tata Motors-Fiat JV will have an annual capacity in excess of 1,00,000 cars and 200,000 engines and transmissions, and production will start from the beginning of 2008.

Tata Motors also said it will continue discussions with Fiat for cooperation in Latin America. Fiat in November said, it would make Tata Motors' new 1-tonne pick-up truck at its plant in Argentina, from the second half of fiscal 2008.

KPIT Cummins Infosystems to announce bonus
KPIT Cummins Infosystems has decided to have a board meeting on Dec. 26, 2006 to fix and announce the record date for sub-division of shares from Rs 5 each to Rs 2 each.
The meeting will also consider the announcement of bonus equity shares in the ratio of one bonus share for one equity share of the company.

KPIT Cummins Infosystems was established in 2002 following the merger of KPIT Infosystems with Cummins Infotech, a subsidiary of Cummins, USA. It has development centers in India, with global subsidiaries in USA, UK, Asia Pacific and the Middle East.

The company is engaged in providing advanced technology solutions, business IT & intelligence and outsourcing services in the verticals of manufacturing and diversified financial services. It has strategic partnerships with Cummins, Lehman Brothers, SAP, Oracle, Microsoft and SH Mobile.

Shares of the company were last trading up Rs 10.70, or 1.80% at Rs 604.90 at BSE. (11.42 am, Monday). The volume of the shares trading at BSE is 41,749.

Update 1

Sensex off lower level
The market remained weak, but it came off lower level.At 11:32 IST, Sensex was up down 100.16 points at 13,514.36. It opened 81.08 points higher at 13,695.60 and advanced to hit an intra-day high of 13,725.67. But soon from here, it started declining, on intense selling pressure. This selling continued till it slipped to an intra-day low of 13416.40

The total turnover on BSE amounted to Rs 1302 crore.Market breadth was weak on BSE, with 1308 shares declining as compared to 866 that advanced. 72 shares remained unchanged.Among the Sensex pack, 26 declined while the rest advanced.

Huge gas find fuels rally in ONGC
Oil exploration major ONGC surged rose 5.4% to Rs 861 following reports that it has made a huge gas find in the Bay of Bengal, with initial estimates suggesting reserves of about 21 trillion cubic feet.

Last week, reports suggested that ONGC Mittal Energy (OMEL), the joint venture between ONGC and Mittal group, is eyeing opportunities in Kazakhstan, Azerbaijan and Indonesia. OMEL has also bagged two blocks in Nigeria and the production-sharing contracts are expected to be signed shortly. The joint venture recently bid for an offshore block in Trinidad & Tobago.

Meanwhile, ONGC’s overseas investment arm ONGC Videsh proposes to undertake joint exploration and production activities in Iraq with Reliance Industries (RIL). ONGC and RIL are likely to rope in Angolan oil firm Sonatrach to take up joint exploration of a discovered block - touted to have a production capacity of 1,50,000 barrels a day - in south Iraq, reports suggest.

Analysts say, ONGC is one of the less expensive frontliners. The current price of Rs 861 discounts its trailing 12-months September 2006 EPS of Rs 69.40, by a PE multiple of 12.4.The company has also set up a board meeting on 23 December 2006, to consider an interim dividend.

L.T. Overseas trades at discount to IPO price
L.T. Overseas was trading at Rs 54.75 in early trade compared to IPO price of Rs 56
The stock listed on BSE at 7.14% premium at Rs 60 and hit an intra-day high of Rs 62.90. Its intra-day low is Rs 54.10.The counter saw high volumes of 23.04 lakh shares in early trade.

L.T. Overseas is engaged in the business of milling, processing and marketing of branded & non-branded basmati rice and manufacturing of rice food products in the domestic and overseas market. The company’s 'Daawat' brand is among the top-three basmati rice brands in India.

The net proceeds from the IPO will be used for setting up a new parboiled rice processing and milling capacity of 6 TPH of paddy input amounting to Rs 7.02 crore, for setting up a new milling line for producing value added rice (increase of capacity of 5 TPH) amounting to Rs 4.10 crore, to add balancing equipments and automation of existing facility amounting to Rs 3.13 crore, to set up silos and flat storage facility amounting to Rs 12.42 crore, for generating power up to 2 MW for captive consumption amounting to Rs 5.05 crore and for general corporate purpose and public issue expenses.

The company’s post issue equity share capital is Rs 22.27 crore, while post-issue promoter stake is 63.87%.L.T. Overseas had posted to net profit of Rs 11.13 crore on net sales of Rs 400.83 crore for the year ended March 2006.

Smooth sailing for ABG Shipyard on new order win
ABG Shipyard gained 2.5% to Rs 229.85 after the company bagged a Rs 100 crore order from Vroon Offshore.1.9 lakh shares changed hands in the counter on BSE.The stock had witnessed a sustained fall since mid-November 2006. From Rs 272.35 on 13 November, the stock had declined to a low of Rs 211.15 on 12 December. From that low, it had recovered to Rs 224.25 by 15 December.

ABG Shipyard has secured an order worth about Rs 100 crore for construction of a diving support vessel from Vroon Offshore B.V., The Netherlands. The company said it already building two vessels for Vroon Offshore.

With the latest order win, the company’s total order book has risen to about Rs 2400 crore, the company said.

ABG Shipyard’s net profit rose 42.8% to Rs 27.1 crore in Q2 September 2006 compared to Rs 18.9 crore in the corresponding period a year ago. During the quarter, the company's income was Rs 167.9 crore, against Rs 113.9 crore in the same period last fiscal, representing an increase of 47.45 per cent.

Cairn plays it safe, prices IPO at Rs 160

Cairn India today settled on a price of Rs 160 for its initial public offering of 328.8 million shares. This was at the lower end of the price band of Rs 160-190 at which it had offered the shares. The company has raised Rs 5260 crore through the IPO that closed yesterday.

This also means that the company may have to revise the price of the shares it had sold in private placements to Malaysian state owned oil company Petronas and others before the public float.

It had sold 209.67 million shares to Petronas, Videocon and Blackrock-Merrill Lynch, at Rs 176.48 per share at a 10 per cent premium at the bottom of the band. It had raised Rs 3700 crore through the pre-IPO placement.

At the time of its pre-IPO placement, Cairn had said in a statement that if the shares to the public are issued at a price less than that of the pre-placement, it will revise the price. At an issue price of Rs 160, Cairn India may have to refund at least Rs 335.47 crore to its private investors.

International Finance Corporation, the private investment arm of the World Bank, had also announced that it will invest up to $45 million in the company. Cairn Energy PLC, the UK based parent company has diluted 30.5 per cent of its holdings in Cairn India through the IPO.

Cairn India has known assets of 754 million barrels oil equivalent (MMBOE) in Rajasthan of which it owns 472 MMBOE. It also estimates that there are additional reserves of 414 MMBOE in Rajasthan fields. It also estimates that there are estimated reserves of 157 MMBOE in fields outside Rajasthan much of which is in deepwater block K6-dwn-982.

Cairn owns 13 exploration blocks in the country of which two - Ravva off shore on the east coast and Cambay Basin on the Gujarat coast. The Rajasthan blocks where oil was discovered by the company are expected to begin production by 2009.

Cairn India will own 10 of the 13 assets of the parent company and the three blocks on the Himalayan fold will be jointly owned by the two companies.

Once the Rajasthan blocks begin production, the company would be producing 150,000 barrels per day, which would be around 20 per cent of the country's domestic production. Cairn is also investing $90 million in the Ravva off shore to maintain production levels at 50,000 barrels per day.

Sebi to make grading of maiden floats mandatory

The Securities and Exchange Board of India is planning to make IPO grading mandatory from the next fiscal. Sebi chairman M Damodaran told reporters here today that the board would decide on the proposal by April 15.

According to him, the primary market advisory committee, headed by HDFC chairman Deepak Parekh, had given a recommendation recently to make the IPO grading mandatory. “They feel that the grading should not be optional rather it should be mandatory because it will lead to better disclosure and is good for small investors,” he said.

Damodaran said the committee felt that the grading could be funded from the investor protection fund of exchanges as well Sebi.

“Our board has yet to take a view on this, but I feel that it will be discussed in our board meeting in March-April,” he added.

Damodaran said grading of an IPO usually costs around Rs 3-4 lakh and could be easily funded by the exchanges. “We are now working on a pilot project as far as IPO grading is concerned and Crisil, Care and ICRA are the agencies involved in this,” he added. Damodaran informed that since the introduction of optional IPO grading, 11 companies had availed the facility.

“We feel that if the process is funded by the exchanges then the companies coming for IPO do not have to incur extra cost. Besides, the exchanges can use the data on their website. In case of dual listing, both the exchanges have to share costs,” he added. UIN may return

Sebi is contemplating to reintroduce a unique identification number for investors. It may be noted that the regulator discontinued MAPIN (market participants identification number) around six months back after introducing it last year. However, Damodaran made it clear that MAPIN project was suspended not abandoned. “This time we will have 3-4 agencies instead of one agency for the identification number,” he added. Sebi mulls unified SRO

Sebi is contemplating a super self-regulatory organisation (SRO), which will look into the ground level control aspects of capital market, mutual funds and merchant bankers.

At an interactive session, Sebi Chairman M Damodaran said the market regulator was working on the idea of a unified SRO rather than separate SROs for mutual funds, capital market and merchant bankers.

“We have already spoken to organisations like Association of Mutual Funds in India (AMFI) and Association of NSE Members of India (ANMI) for SRO. But we feel that rather than multiple SROs a unified SRO will be a better option,” he said.

According to Damodaran, the independent SRO may be a combined body of AMFI, ANMI, representatives of merchant bankers and a few financial market experts.

Sensex gains over 100 points

Firm global markets have helped domestic bourses from the mayhem they witnessed early this week, when the Sensex had plunged 800 points in just two trading sessions, on 11 December and 12 December. With a strong rebound, technical analysts are now eyeing key resistance levels for the key indices and fundamental analysts the corporate advance tax figures for the third installment due on 15 December.

A decline in inflation and provisional data showing heavy FII buying on Thursday, also assisted the recovery today besides firm global markets. However, the market failed to sustain the higher level as it approached a key resistance level.

The 30-share BSE Sensex jumped 127.36 points (0.9%), to settle at 13,614.52. The S&P CNX Nifty rose 45.6 points (1.1%), to settle at 3,888.65. Nifty pared gains after scaling 3,908.45 in mid-afternoon trade. Technical analysts feel that 3,900-3,920 is a key resistance level for Nifty. Only a decision close to that level will indicate resumption of uptrend, they say. Nifty also has strong support at 3,700 level, market participants feel.

The Sensex pared gains after gaining as much as 182.49 points to a high of 13,669.65 in mid-afternoon trade. It remained in the green throughout.

The market-breadth was strong. For 1,549 shares rising on BSE, 1,007 declined. A total of 71 shares were unchanged. Gainers outpaced losers by a ratio of 1.53:1.

The BSE clocked a turnover of Rs 4,150 crore compared to Thursday’s Rs 4,415 crore.

Asian and European markets were steady-to-firm. Key benchmark indices in Hong Kong, Japan and London were up 0.3 - 1%. US stocks surged on Thursday, driving the Dow industrials to a record close on strong earnings from companies such as investment bank, Bear Stearns Company, and an improving outlook for the US economy. The Dow Jones industrial average gained 99.26 points, or 0.81%, while the Standard & Poor's 500 Index jumped 12.28 points, or 0.87%, to end at 1,425.49. The Nasdaq Composite Index finished up 21.44 points, or 0.88%, at 2,453.85.

Nymex crude rose 27 cents, to $62.78 a barrel, extending Thursday’s near 2% surge due to an OPEC decision to cut production once again.

The market has seen sharp movements in the past few days. A near 1,000-point fall in the Sensex in three trading sessions, between 8 December 2006 and 12 December 2006, was followed by a recovery of about 620 points in the last two trading sessions.

After the latest industrial data, which spread fear of an economic slowdown, market men will now be closely eyeing third installment of advance tax paid by corporates. The third installment is due on 15 December 2006. The corporate advance tax payment will provide a broad outline of Q3 corporate results.

Market men will also be watching FII allocations for India for calendar year 2007.

As per provisional data, FIIs were net buyers to the tune of Rs 480 crore on Thursday (14 December), the day when the Sensex had surged 306 points. They were net sellers to the tune of Rs 96.90 crore on 13 December, the day when the Sensex had gained 186 points.

FIIs were seen cutting cash-futures arbitrage positions in the recent market fall. On top of it, they pressed heavy sales in index-based futures. Their net sales in index-based futures in four trading sessions, between 8 December and 13 December, aggregated Rs 3,036 crore.

Mutual funds have pressed heavy sales recently. Their net outflow in three trading sessions, between 11 December and 13 December, aggrregated Rs 1,439 crore.

A section of the market expects sideways movement on the bourses in the coming days as, it is felt, FII-participation will be limited on account of “year end” factor, taking its toll on volumes. Foreign fund managers will be on a holiday for Christmas and year-end from about 20 December.

In today’s trade, PSU banks surged after data released at 12:00 IST revealed that inflation eased to 5.16% for the 12 months to 2 December, compared to 5.3% in the previous week. Canara Bank surged 9.9% to Rs 291.90, Bank of Baroda rose 4.7% to Rs 246 and Bank of India gained 4.4% to Rs 193.25.

State Bank of India gained 3% to Rs 1,261. The Standing Committee on Finance has endorsed the proposed legislative amendment to reduce State Bank of India’s shareholding in subsidiaries from 55% to 51%.

Reliance Industries (RIL) declined in volatile trade. The stock shed 0.7% to Rs 1,252.55. Reports today suggest, RIL has paid Rs 444 crore towards the third installment of advance tax due 15 December 2006. CLSA, a brokerage, while issuing an outperform rating on the scrip with a 12-month price target of Rs 1,265, recently stated that RIL's scrip performance over the next year will hinge on news flow.

Battered Tata Steel surged 5.5% to Rs 460. A strong 27.3 lakh shares changed hands in the counter on BSE. The stock rose on bargain-hunting, after a steep fall arising from concerns about its bidding war with Brazil’s CSN. Both are locked in a deadly duel over European steel maker Corus Group.

Reliance Communications surged 4% to Rs 466, extending its rebound of the last two days, amid reports of the company chasing Hutchison's India operations.

Hindalco surged nearly 4% to Rs 177.95, tracking firm global copper prices. The stock rose on a huge volume of 38.2 lakh shares on BSE.

Select IT pivotals gained, tracking overnight gains in their ADRs. Satyam Computer rose 3% to Rs 481.70, after its ADR rose 3.6% to $23.79. Infosys rose 1.8% to Rs 2,239; its ADR rose 2.1% to $55.20.

But Wipro lost 1.2% to Rs 563.25, even as its ADR rose 3.2% to $15.60 overnight.

ACC (up 2.2% to Rs 1,055) held firm. The board of ACC has approved an expenditure of about Rs 1,480 crore to raise the capacity of the New Wadi plant, by about 3 million tonnes per annum.

Grasim gained 2.9% to Rs 2,741, extending its recent surge.

Gujarat Ambuja Cements rose 0.6% to Rs 139.50 in volatile trade. Gujarat Ambuja Cements said on Friday, its board approved Rs 1,520 crore to raise cement capacity by 3 million tonnes per annum.

Cigarette major ITC shed 1.7% to Rs 173.85, and power generation giant NTPC shed 1.3% to Rs 143.55.

Bajaj Auto lost 0.1% to Rs 2,579. As per reports, the company will hike prices across the product range, except for the Pulsar, by about Rs 500 from next month.

Tata Motors rose 0.5% to Rs 857.60, after it decided to jointly invest Rs 4,000 crore with Fiat, in a car and engine making facility at Ranjangaon, Pune.

IDBI rose 0.8% to Rs 75.80. International Finance Corp (IFC) has tied up with IDBI to fund lower carbon emission processes by Indian companies.

Bombay Burmah Trading Corporation rose nearly 1% to Rs 338, after its wholly-owned subsidiary, AFCO Industrial & Chemicals, acquired an auto electrical components firm, Electromags Automotive Products.

Federal-Mogul Goetze (India) gained 5.2% to Rs 420, after the auto parts maker said its board will meet on 21 December 2006, to consider a rights issue of up to Rs 115 crore.

Pacific Cotspin jumped nearly 6% to Rs 6.24. The company announced that its board will meet on 22 December 2006 to discuss a preferential issue of equity shares for promoters.

Unichem Laboratories gained nearly 3% to Rs 262, after the company said it has acquired the residual 40% stake in Niche Generics, thus making it a 100% subsidiary. Niche Generics is into product development, dossier filing and manufacturing pharmaceutical formulations in the European markets.

Update 4

Thai expansion buzz turns on Tata Steel
Tata Steel jumped 5.64% to Rs 460.50, on reports that it will invest Rs 450 crore for setting up an iron ore smelting plant in Thailand.The iron ore smelter unit will be part of Millennium Steel, Tata Steel's Thai subsidiary.The stock slipped sharply from Rs 492.90 on 5 December to Rs 435.90 by 14 December, due to sustained selling.The stock clocked a very high volume of 26.87 lakh shares on BSE.

Millennium Steel, in which the Indian steel major bought 40% (majority) stake for about Rs 600 crore last year, has been renamed Tata Steel (Thailand).

The investment comes when doubts are raised in Indian markets that the company’s expansion plans could be pushed to the background, what with the private steel behemoth raising about $7 billion in debt to fund the acquisition of Corus. Construction of the smelting plant, with a capacity of 5,00,000 tonne per annum, is expected to begin in early 2007 and will be ready for commissioning in about 15 months.

Suzlon Energy eases, a wee bit
Suzlon Energy was down 0.70% to Rs 1,302, even after three block deals in the counter on BSE.Each of the three block deals involved 5.82 lakh shares and were struck at an average Rs 1,316 per share in opening trade.The counter clocked a cumulative volume of 19.86 lakh shares on BSE, compared to average yearly volume of 3.05 lakh shares on a daily basis.

As part of its expansion timetable, Suzlon Energy will set up a 1,500-Mw wind turbine factory in Karnataka, while simultaneously expanding its existing unit in Vadodara. The capital expenditure will be funded through internal accruals and debt.

Suzlon Energy currently has over 30 wind farms located across eight states.

Suzlon is constructing a wind resource study in West Bengal, Orissa, Chhattisgarh and Bihar. The company's rotor blade unit in Minnesota, USA, and its factory in Tianjin, China, started operations this year.

Crompton Greaves makes the most of impending bonus issue
Crompton Greaves surged 7.56% to Rs 208.40, the most among BSE ‘A’ group stocks.

Crompton Greaves has been advancing as buying continues on the back of a robust order-book. Investors are lapping it up for bonus shares. The company had earlier fixed 15 December 2006, as the record-date for an issue of bonus shares in ratio of 2 bonus shares for every 5 already held.

MphasiS BFL jumped 7.39% to Rs 273.10, as market men expect it to bag a large $2.4 billion contract in association with American promoter, Electronic Data Systems (EDS) Corporation, US. EDS had bought 52% stake in the company, and made an open offer for approximately 32.95 million shares. The offer opens on November 27 and closes on December 18. As a result, EDS' holding in MphasiS BFL will increase to 70.4%.

Jindal Steel and Power advanced 6.86% to Rs 2,167.35, on strong buying demand, tracking firm metal prices on the LME.

India Cements rose 6.20% to Rs 228.15 on high volumes, as analysts expect demand for cement to last due to expanding infrastructure and housing activity.

Canara Bank gained 5.91% to Rs 281.25, as buying resumed after a few state-run banks informed that the latest hike in CRR will have only a marginal impact on profitability.

Update 3

Sensex hovers above 13,600
The market moved in a range in mid-afternoon trade. At 14:39 IST, Sensex was up 154 points at 13,641. Sensex moved between 13,584 to 13,650 since 13:45 IST.The S&P CNX Nifty was up 1.3% at 3,896.50. It had hit a high of 3,908.45 in mid-afternoon trade.The market remained in the green throughout the day today.The market breadth was strong. 1632 shares rose on BSE as compared to 875 shares that declined. 79 shares were unchanged. Gainers outpaced losers by a ratio of 1.8:1.BSE clocked a turnover of Rs 3329 crore.

Reliance Industries (RIL) (down 0.2% to Rs 1258.80) moved between positive and negative zone. But the stock remained off its low of Rs 1244 of early trade. Reports today suggest that RIL has paid an advance tax of Rs 444 crore in the third installment due 15 December. Meanwhile, CLSA, a brokerage, while issuing an outperform rating on the scrip with a 12-month price target of Rs 1,265, recently stated that RIL's scrip performance over the next year will hinge on news flow.

Gujarat Ambuja Cements (down 0.04% to Rs 138.50) slipped into the red soon after the reports filtered in about its major expansion plans. Gujarat Ambuja Cements said on Friday its board approved a capital expenditure plan of Rs 1520 crore to raise its cement capacity by three million tonnes per annum.

Block deals spice up RPG Transmission
RPG Transmission surged 8.81% to Rs 170.40, as two block deals were struck in the counter.Two block deals, of 2.25 and 3.75 lakh shares, were struck in the counter at Rs 159.05 and Rs 163.75, respectively, by 11:06 IST.The stock witnessed a cumulative volume of 7.51 lakh shares on BSE.The stock declined from Rs 171.95 on 8 December to Rs 151.40 on 12 December, in line with an overall market crash. Here, it found support and rose to Rs 156.60 by 14 December, as buying resumed.

In late March, RPG Transmission bagged a new order worth Rs 119 crore from Power Grid Corporation of India (PGCIL) for a transmission project funded by Asian Development Bank (ADB). The current order book of the company stands at around Rs 430 crore.

The company's scope of work was supply and construction of 35 km long 400 kv Multi Circuit Transmission Line from Tenakasi to Edamon, which is a part of Tirunelveli-Edamon Transmission Line associated with Grid strengthening of Kerala. The line, which involves two circuits of 400 KV Quad Bundle conductors on the same tower, is a first for the country and is scheduled to be completed by March 2008.

Block deal facilitates Hindalco upmove
Hindalco advanced 3.47% to Rs 177.50, helped by a block deal on BSE.The mass deal for 25.90 lakh shares was executed in the counter on BSE at Rs 176 per share, by 13:12 IST. It jumped after the block deal was struck.The counter clocked a cumulative volume of 34.43 lakh shares on BSE.It has firmed up in the past two sessions; from Rs 167.40 on 12 December 2006 to Rs 171.55 on 14 December 2006, as buying resumed after a sharp fall. The stock also got a fillip from firm metal prices on LME. Hindalco Industries has is into copper and aluminium businesses.

In late November, Hindalco Industries bid for rights to develop Afghanistan's Aynak copper deposits, with proven reserves of 240 million tonnes. The project, which will require investments of $1billion over five years, is part of the government's plan to revive the mining industry in post-Taliban Afghanistan.

Federal-Mogul Goetze (India) jumps as rights issue likely
Federal-Mogul Goetze (India) spurted 4.71% to Rs 418, after its board decided to meet on 21 Dec 2006 to consider a rights issue worth Rs 115 crore.The board will also fix a price band for the rights issue at the same meeting.The counter clocked 17,913 shares on BSE. The stock had also surged to an intra-day high of Rs 432 in opening trade.The stock rallied sharply in the past few weeks. From Rs 343.20 by 28 November 2006, it surged to Rs 401.70 by 13 December, on sustained buying. Here, it began sliding to Rs 399.20 by 14 December 2006, on profit-booking.

Recently, Federal-Mogul acquired the Indian promoters’ stake, raising its holding to 50.11%, to take control of the company. Federal Mogul is a leading auto-ancillary company with a very strong presence in the diesel vehicles segment. It supplies ancillaries to auto majors like General Motors and Daimler Chrysler.

Update 2

Nifty comes closer to 3,900
The market held firm after the latest data showed inflation eased to 5.16% for the 12 months to 2 December, compared to 5.3% in the previous week. Firm global markets supported the domestic bourses.

At 12:24 IST the Sensex was up 129 points, at 13,616. The barometer index fluctuated between 13,616 and 13,659.65 since 11:30 IST.The Sensex had recovered from a lower level in mid-morning trade, after having pared early gains.The Sensex has also dipped to a low of 13,545.60 and scaled a high of 13,659.65.

The S&P CNX Nifty was up 1% at 3,883.25, down from an intra-day high of 3,898.05.

Technical analysts feel that 3,900-3,920 is a key resistance level for Nifty. Only a decision close to that level will indicate resumption of uptrend, they say. Nifty also has a strong support at 3,700 level, market participants feel.

The market-breadth was strong. For 1,688 shares rising on BSE, 697 declined. Just 61 shares were unchanged. Gainers outpaced losers by a ratio of 2.4:1.The BSE clocked Rs 2,068 crore in turnover.

TCS gains marginally on securing order and GDC expansion plans
The shares of TCS are trading higher by 0.82% at BSE (11.38 a.m) on news of securing order and GDC expansion plans.Currently, the shares are trading at Rs 1,158.05 at BSE compared to the previous day`s close of Rs 1,148.6 (Thursday). A total of 36,258 shares have changed hands at the bourses so far.

Tata Consultancy Services (TCS) has secured a contract to implement end-to-end solutions for national flag carrier, Shipping Corporation of India.The contract, including automisation, is for 22 months. The deal size of the contract is not yet disclosed.

Tata Consultancy Services (TCS) is also expanding its global delivery center in Uruguay to host over 250 personnel.The company undertook this investment to support the rapid expansion of its Latin American business and to pro-actively lower the risk for its clients by providing an alternative back-up site in Uruguay. TCS already provides services to over 40 clients across Latin America & United States, using its existing global delivery center in Uruguay.

The stock has shown a fall of 1.54% over the week and a rise of 5.72% over the month.

Tata Steel surges 3.56% on capex plans worth Rs 4.5 bn
The shares of Tata Steel are trading higher by 3.56% at BSE (11.06 a.m) on news of capex plans worth Rs 4.5 billion.Currently, the shares are trading at Rs 451.4 at BSE compared to the previous day`s close of Rs 435.9 (Thursday). A total of 732,520 shares have changed hands at the bourses so far.

Tata Steel plans to invest Rs 4.5 billion in its Thai subsidiary, Millennium Steel. The investment is for the purpose of setting up an iron ore smelting plant, which will make the company`s production line in the country fully integrated.

Construction of the smelting plant is expected to begin in early 2007. The capacity of plant is likely to be around 5,00,000 tonne per annum, and will be ready for commission in about 15 months.

The stock has shown a fall of 6.43% over the week and 7.09% over the month.

Marico trading high on Bangladesh buy
Shares of Marico are trading 3.07% higher, at Rs 560, compared with their previous close of Rs 543.30 (Thursday). A total of 1589 shares have changed hands at the bourses (11.10 am).

Marico is close to finalising a deal to buy a personal care company in Bangladesh for USD 35.1 million (Rs 1560 million), payable in two tranches. The company has paid the first installment of USD 17.6 million.

The move is a part of the company`s overall strategy to push growth beyond the Indian subcontinent and build a global franchisee for the company`s branded products and services. It is expected to establish a significant presence in the market. Marico expects this to translate into greater disposable income. In Bangladesh, Marico operates through Marico Bangladesh, a wholly-owned subsidiary with a manufacturing facility at Mouchak, near Gazipur.

The company had raised Rs 1513.8 million through an equity issue to qualified institutional buyers (QIBs).The stock of Marico had a 52-week high of Rs 586, while its 52-week low was Rs 321.