Stone India Ltd:

CMP: Rs.50.50
Market Cap: Rs.39.62

EPS (TTM): Rs.6.65

Price/Book:1.20

 P/E:7.84

Industry P/E: 20.88
Website: http://www.stoneindia.co.in

Introduction: Stone India is a multi-product engineering company located in Kolkata, has been serving the Indian rail road industry for over seven decades.
Shareholding Pattern: The promoters hold 38.58% while the general public  holds 61.42%. Among the general public National Insurance Company holds 1.39% of the shares of the company. 
Financials: Stone India Ltd came out with flat set of numbers for the Q3FY11, when compared on Q-o-Q basis. The total income of the company came out to be Rs.23.46 Cr as against Rs.23.47 Cr in the same period previous year. The net profit of the company came out to be Rs.1.13 cr in Q3FY11 as against Rs.1.03 Cr in the same period previous year. The EPS of the company for Q3FY11 came out to be Rs.1.49 in Q3FY11 as against Rs.1.35 in the same period previous year. 
Triggers: 
(i)  In the railway budget to be presented in this week (25th February, 2011 to be precise), there are chances of introduction of few more "DURONTO TRAINS',  by the present Railway Minister, Dr.Mamata Banerjee. The following "Duronto Trains" have been proposed:
(a) Howrah - Chennai Central Duronto Express (Fully A.C)
(b) Howrah - Secunderabad Duronto Express (Fully A.C)
(c) Chennai - Mumbai Duronto Express
(d) Bangalore - Mumbai Duronto Express (Fully A.C)
(e)  Sealdah - Guwahati Duronto Express (Fully A.C)
(f)  Mumbai - New Delhi Duronto Express (Fully A.C)

Stone India Limited earlier entered into an understanding with Sumitomo Electric Industries of Japan to form a JV in phases to locally manufacture air springs for the railways. This will help the company to provide complete end to end solution of pneumatic suspension system to the Railways through supply of primary, secondary suspension products and pneumatic control system with in built failure detection device. Stone India will now start exporting metal parts of air springs to Sumitomo Electric Industries.
(ii) Stone India is gradually switching over to high speed trains requiring the use of suspension systems---a beginning had already been made with "Duronto trains" which were using advanced suspension system instead of the conventional suspension system.
(iii) Its factory at Nalagarh, Himachal Pradesh has already started commercial production of Distributor Valve and Panel Mounted Brake System. The approval for other products are expected soon. The expansion plan is in progress at site for new products which will add to its production capacity. As was reported earlier Stone India Ltd has started manufacturing Air Springs and then supplying to Railway. The business of Air Springs is expected to grow substantially in the coming years as Indian Railways have decided to turnout all EMU as well as Main Line Coaches duly assembled with AIR Springs to improve passenger comfort. The enhancement of sales of Air Spring will further contribute to increase the turnover. 
(iv) The Company established a Railway Electronic Division to undertake design and development of Different Electronic equipments required for railway in order to improve the performance and safety of railway wagon and coaches and also to improve the control and information system. As a part of this it has already come up with new products which are being tested and approved by RDSO.
(v) The company has received the first development orders for FDCS from Railways Chittaranjan Locomotive Works which will ensure better safety features. The company has achieved a major break through in Bio Toilet and controlled discharge Toilets and already some of the Toilets has been fitted in some Trains for Trial runs. The products are running successfully for the last one year. It has also got orders for Controlled Discharge Toilet to be supplied to Railways. Moreover, electronic Brake System for Diesel Locomotive is being pursued. For Electric Locomotive it has been recommended for the placement of the first developmental order by Railways. 
(vi) Stone India Ltd recently informed BSE that it has entered into an exclusive co-operation with NRT Co. of Korea to undertake Platform Screen Projects for Metros. This co-operation comes into immediate effect and will serve different Metro Projects across the country.
Thus investors can buy the scrip of Stone India Ltd at the CMP of Rs.50-51, for a target of Rs.71-72, in the short term. The scrip trading at a P/E of 7.71 againt the industry P/E of 20.88. Now giving a suitable discounting and considering a fair P/E of 15, the scrip can have a target of Rs.85.90, in the medium term, especially in the view of the new JV with NRT Co. of Korea to undertake Platform Screen Projects for Metros.

Stone India Ltd

BSE Code: 522085

Investors can buy the shares of Stone India Ltd at the price range of Rs.57.80--Rs.58 for the short term. The stock is looking good on the daily charts.

Stone India Limited earlier received the first bulk order valued at Rs.49 Million from Rashtriya Coach Factory, Kapurthala for the supply of Air Spring for 123 coach sets.

It is manufacturing this product in collaboration with Sumitomo Electric Industries, Japan - the leading supplier of such products for Bullet Trains in Japan. This product will be supplied both from Kolkata as well as from its new plant in Nalagarh, Himachal Pradesh. The company expects to receive more orders for Air Spring during the year.

The company would get benefitted from the introduction of few more "Duranto Express Train"  by the railway minister, Ms.Mamata Banerjee. 

"Duranta Express" will use a 'new generation' pneumatic suspension system manufactured by Stone India, which will provide superior air cushion ride for passengers for trains running at a higher speed. Its uniqueness lies in its rubber & metal design which holds a large column of air.

Stone India, a multi-product engineering company located in Kolkata, has been serving the Indian rail road industry for over seven decades.

It was also recommended earlier in my blog: SumanSpeaksPlus.

RAILWAY BUDGET 2011: 

I think  you have bought Kernex Micro Systems Ltd earlier, now buy Stone India Ltd (www.stoneindia.co.in), before the railway budget. This time lot of emphasis is expected to be given on laying of new tracks and the safety of railways. Some more prestigious "Duronto Trains" could be introduced, which would give clear advantage to the shareholders of Kernex Micro Systems Ltd (Rs.118.50) , Stone India Ltd (Rs.51.50) and to some extent to Titagarh Wagons Ltd (Rs.440.45). 

The 2011-2012 Budget session will begin on February 21. The date for the presentation of the Union Budget is February 28 and the Railway Budget will also be presented soon after that. Usually the railway budget is presented two days before the Union Budget.

The 2011-2012 Budget session will begin with a joint sitting of the two Houses that will be addressed by President Pratibha Patil.

Due to the numerous calamities and mishaps that took place in the year 2010 the railway department is expecting two times the budget allotted in the previous year. 

Currently the railway budget is undergoing a financial crisis and in order to overcome it; the department would require an increase in the budgetary support from the Finance Ministry of India.

The railway department has requested for Rs.39,600 crore as gross budgetary support in 2011 as compared to the Rs.15,875 crore that it received in the 2010 budget. This whooping expectation is not only to repair the damages but also for the ongoing and upcoming railway projects. The railway department also aims at further expanding and modernizing the railway infrastructure of the country.

The 2011 railway budget aims at increasing the production of wagons, coaches and locos, gauge conversion and doubling of tracks and laying of 1000 km of railway tracks. There will also be an increase in the number of trains and freight carriers. All these augurs well for the shareholders of Kernex Micro System, Stone India, Titagarh Wagons Ltd, etc. 

The target of the department is to increase the number of coaches from 3700 in the previous year to 4000 coaches in 2011-12. In the wagon manufacturing segment the department plans to churn out 18,000 wagons and as far as locomotives are concerned they are expected to increase by another 5000.

The 2011 railway budget will also give importance to safety and security issues like improving the signaling system, train protection warning system (TPWS) and installing safety related technology like Anti-collision devices (ACD).  

WINNING STROKES: THINK DIFFERENT

Jai Balaji Industries Ltd hit the buyer freeze in the late afternoon trade. The reasons are best known to all. 

As expected Sintex Industries Ltd moved to Rs.86, before cooling a bit. 

Country Club India Ltd, is doing absolutely fine. According to my close sources, all the FCCB related issues will be solved by 31st March, 2012. Moreover, the company is expanding not only in India but also in overseas.
Key benchmark indices edged higher for the second day in a row as bank stocks rose after the Reserve Bank of India (RBI) announced a reduction of 75 basis points in banks' cash reserve ratio (CRR) requirement to ease liquidity situation in the banking system. The 50-unit S&P CNX Nifty attained its highest closing level in more than a week and half. The barometer index, BSE Sensex, scaled its highest closing level in more than one week. Index heavyweight Reliance Industries (RIL) edged higher. The Sensex advanced 84.43 points or 0.48%, up close to 90 points from the day's low and off about 185 points from the day's high.
Auto and IT stocks were mixed. Engineering and construction major L&T rose for the second day in a row after naming a new CEO and MD. GAIL (India) rose after twin bulk deals. The market breadth was positive. BSE Small-Cap and Mid-Cap indices outperformed the Sensex.
From a recent low of 17,145.52 on 7 March 2012, the BSE Sensex has gained 442.15 points or 2.57% in two trading sessions. The barometer index has lost 161.02 points or 0.9% in March 2012 so far (till 12 March 2012). The index has surged 2,132.75 points or 13.79% in calendar 2012 so far (till 12 March 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2,451.81 points or 16.19%. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 2,223.47 points or 11.22%.
Coming back to today's trade, the market pared gains after a firm start triggered by the Reserve Bank of India's announcement after markets hours on Friday, 9 March 2012, of a reduction in cash reserve ratio (CRR) of banks by 75 basis points to ease liquidity situation in the banking system. The market came off lows in morning trade. Key benchmark indices regained positive zone after slipping into the red in mid-morning trade. The market regained strength in afternoon trade. The market held positive zone in mid-afternoon trade.
The BSE Sensex advanced 84.43 points or 0.48% to settle at 17,587.67, its highest closing level since 3 March 2012. The index jumped 268.86 points at the day's high of 17,772.10 in opening trade, its highest level since 29 February 2012. The index fell 8.59 points at the day's low of 17,494.65 in early afternoon trade.
The S&P CNX Nifty advanced 26 points or 0.49% to 5,359.55, its highest closing level since 29 February 2012. The index hit a high of 5,421.90 and a low of 5,327.30 in intraday trade.
The BSE Mid-Cap index gained 1.06% and the BSE Small-Cap index rose 0.7%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2339 crore, lower than Rs 3475.67 crore clocked on Friday, 9 March 2012.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,599 shares rose and 1,246 shares fell. A total of 121 shares were unchanged.
Among the 30-share Sensex pack, 17 gained while the rest declined.
Index heavyweight Reliance Industries (RIL) advanced 3.02% to Rs 796.95 in volatile trade. The stock hit a high of Rs 802.80 and low of Rs 781. RIL along with BP PLC will reportedly submit a joint plan to the government to develop the D6 natural gas block and its satellite fields as an integrated unit. The proposal is significant in that it will seek approval to develop an entire block as one unit, rather than follow the current practice of getting clearance for one oil or natural gas field at a time.
In 2011, BP purchased a 30% stake in 21 RIL's oil and gas blocks across India, including D6, which is India's biggest gas discovery so far. RIL is facing declining output at D6 due to reservoir complexity, a natural decline in reserves and delays in developing satellite fields. Output at the D1, D3 and MA fields in the D6 block has plunged to about 38 million metric standard cubic meters a day (MMSCMD) from 60 MMSCMD in June 2010. It is estimated that output will fall further to 27.60 MMSCMD in the next financial year starting April, and to 22.60 MMSCMD in the year after that.
GAIL (India) rose 1.59% to Rs 354.30 on volume of 17.3 lakh shares. A bulk deal of 8 lakh shares at Rs 351.75 per share was executed in the counter on BSE in morning trade. Another bulk deal of 7 lakh shares at Rs 352 per share was also struck on the counter on the BSE.
India's largest engineering and construction major L&T advanced 3.54%, with the stock extending Friday's 5.27% gain. During market hours on Friday, 9 March 2012, the company said K. Venkataramanan will take over as the Chief Executive Officer and Managing Director of L&T from 1 April 2012. He will succeed A. M. Naik who will step down as Managing Director, but continue as Executive Chairman of the group, the company added. The decision was taken by the board of directors to bifurcate the position of Chairman & Managing Director.
Most bank stocks rose after the Reserve Bank of India (RBI) announced a reduction of 75 basis points in banks' cash reserve ratio (CRR) requirement to ease liquidity situation in the banking system. The announcement was made after trading hours on Friday, 9 March 2012.
India's largest bank by branch network State Bank of India jumped 3.96% and was the top gainer from the Sensex pack. The bank's chairman Pratip Chaudhuri was quoted by the media as saying on Sunday, 11 March 2012, that the bank may go in for a follow-on-public-offer (FPO) or institutional placement of shares next fiscal to fund its business growth.
India's biggest private sector bank in terms of branch network, ICICI Bank gained 1.63%. India's second largest bank by net profit HDFC Bank shed 0.57%.
Interest rate sensitive auto stocks were mixed. India's largest commercial vehicles maker by sales Tata Motors gained 1.54%, with the stock extending two-day 4.96% gain.
India's largest utility vehicles maker Mahindra & Mahindra (M&M) declined 1.88%. During market hours Friday, 9 March 2012, M&M said, as part of its ongoing rationalisation of finished stocks, it would be observing no production days up to 2 days per week for the remaining period of March 2012 at the company's tractor plants located at Rudrapur, Nagpur and Jaipur. The management does not envisage any material adverse impact on availability of tractors in the market due to adequacy of tractor stocks to serve the market requirements, the company said.
India's largest car maker by sales Maruti Suzuki India slipped 0.32%.
India's largest bike maker by sales Hero MotoCorp rose 0.96% on reports the company is building in-house capabilities to make its own engines by teaming up with the world's largest privately-owned engine developer AVL of Austria.
India's second largest bike maker by sales Bajaj Auto rose 2.31%.
The Budget announcement by Finance Minister Pranab Mukherjee on 16 March 2012 is expected to bring bad news for the automobile sector, with a likelihood of more taxes, especially on diesel vehicles, which will lead to price hikes and further slowdown in demand.
IT pivotals were mixed. India's third largest software services exporter by revenues Wipro rose 1.16%. India's second largest software services exporter by revenue Infosys declined 1.51%. India's largest software services exporter by revenue TCS fell 1.35%.
Shares of companies whose fortunes are linked to orders from Indian Railways jumped ahead of the railway budget this week. Kernex Microsystems, Kalindee Rail Nirman, Titagarh Wagons, BEML, and Stone India rose by between 1.15% to 3.78%. The Railway Budget will be presented on Wednesday, 14 March 2012.
Given the financial condition of railways, this Rail Budget is likely to seek a two-year moratorium on paying dividend to the government.
Textile stocks were mostly lower after trade secretary Rahul Khullar told reporters on Monday a panel of ministers will likely review a halt on fresh cotton exports from India in two weeks. Arvind Mills, Patspin India, Jindal Cotex, Jindal Worldwide, Alok Industries and Ruby Mills fell by between 0.94% to 3.23%. The government has flip-flopped on the issue of banning cotton exports. After saying it was lifting a ban on overseas sales of the fibre on the weekend, Khullar said on Monday no fresh exports would be allowed and only the quantity permitted to be sold before the ban will be allowed to be shipped.
Realty stocks gained. DLF, HDIL and D B Realty rose by between 0.29% to 8.02%. Unitech was flat. Property consultants and real estate developers have reportedly demanded industry status to the realty sector in the forthcoming Budget. They have also sought incentives to promote affordable housing and an increase in the tax exemption on home loans. To boost supply, they have also asked for a single-window clearance for real estate development projects and foreign direct investment (FDI) in multi-brand retail to create demand for retail space in shopping malls.
Metal stocks rose as LMEX, a gauge of six metals traded on the London Metal Exchange gained 1.86% on Friday, 9 March 2012. Bhushan steel, Sterlite Industries, Hindalco Industries, Tata Steel, Nalco, and Jindal Steel & Power rose by between 0.09% to 2.69%.
JSW Steel rose 2.27% after the company said it is foraying into the manufacture of electrical steel in line with the company's strategy of increasing its portfolio of value added products.
Coal India rose 0.39%. The company announced after market hours today that the board of directors of the company at its meeting held on today, 12 March 2012, has approved payment of interim dividend for the financial year 2011-12 of Rs 9.50 per share as recommended by the Audit Committee of the company.
Avance Technologies clocked highest volume of 1.98 crore shares on BSE. Dazzel Confindiv (89.67 lakh shares), Cals Refineries (79.11 lakh shares), Lanco Infratech (71.38 lakh shares) and SpiceJet (55.65 lakh shares) were the other volume toppers in that order.
SBI clocked highest turnover of Rs 159.19 crore on BSE. Multi Commodities Exchange of India (MCX) (Rs 152.21 crore), GAIL (India) (Rs 61.30 crore), L&T (Rs 53.41 crore) and Reliance Power (Rs 50.51 crore) were the other turnover toppers in that order.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1284.65 crore on Friday, 9 March 2012, as per provisional data from the stock exchanges.
Industrial production grew 6.8% in January 2012 from a year earlier, sharply higher than a revised 2.5% rise in December 2011, helped by a strong rebound in manufacturing output. Manufacturing output, which has a 75.5% weight in the index of industrial production, rose 8.5% from a year earlier in January. It had risen a revised 2.6% on year in December. Electricity production increased 3.2% from a year earlier in January while capital goods output shrank 1.5%.
The Reserve Bank of India (RBI) after market hours on Friday, 9 March 2012, surprised the markets by slashing the cash reserve ratio (CRR) by 75 basis points to 4.75% from 5.5% to ease liquidity situation. The CRR cut, effective the fortnight beginning 10 March 2012, will inject around Rs 48000 crore of primary liquidity into the banking system. At the 3rd quarter policy review in late January 2012, RBI had announced a cut of 50 basis points in CRR, thereby injecting Rs 32000 crore into the cash-strapped system.
The government will release data on inflation based on the wholesale price index (WPI) for February 2012 on Wednesday, 14 March 2012. WPI inflation for February 2012 is projected at 6.7% as per the median estimate of a poll of economists carried out by Capital Market. WPI inflation stood at 6.55% in January 2012.
Meanwhile, data on advance tax for the last installment of 15 March 2012 may provide cues on Q4 March 2012 corporate earnings.
The Reserve Bank of India (RBI) is slated to announce a mid-quarter review of the monetary policy on Thursday, 15 March 2012, a day before the presentation of the Union Budget 2012/13.
The government is working with state governments for early implementation of a goods and services tax (GST), Finance Minister Pranab Mukherjee said on 22 February 2012.
Stating that the United Progressive Alliance (UPA) was committed to honest and efficient governance, President Pratibha Patil on Monday said the country would soon be back on the high growth path of eight to nine percent from the seven percent estimated for the current fiscal. Addressing the joint session of Parliament on first day of the budget session, the President said the long-term fundamentals of the Indian economy remain robust. The government plans to achieve a 9% annual growth target in the five-year plan period ending on 31 March 2017.
Mukherjee will present the annual budget for 2012/13 on Friday, 16 March 2012, while the railways budget will be presented on Wednesday, 14 March 2012. The government will present on Thursday, 15 March 2012 the Economic Survey for 2011/12, a document on the state of economy prepared by the economic division in the ministry of finance. The annual budget is usually presented on the last working day of February. However, the budget has been delayed this time due to the assembly polls.
Reports indicate that the finance ministry is considering a proposal to increase excise duty from 10% to 12%, although still lower than the level before the 2008 financial crisis. The move is aimed at helping the government improve its fiscal situation but it is expected to push up the cost of almost all manufactured goods from food products to consumer durables and automobiles.
Meanwhile, the parliamentary standing committee on finance has given its approval to a revised version of the proposed Direct Taxes Code (DTC) Bill, 2010. The committee has recommended a more progressive tax regime, which entails widening of the income-tax slabs, increasing the exemption limit for savings and raising the ceiling for wealth tax. If accepted, these recommendations will increase disposable incomes in the hands of taxpayers, encourage savings and levy a higher tax on the rich, besides reducing compliance costs for the income-tax department.
The DTC Bill, 2010, consolidates and integrates all the direct tax laws and replaces both the Income Tax Act, 1961, and the Wealth Tax Act, 1957. The committee headed by Bharatiya Janata Party leader Yashwant Sinha, which submitted its report to the Lok Sabha speaker on Friday, 9 March 2012, has also recommended abolition of the securities transaction tax that is levied on the trading of equity shares and some other instruments.
European markets were mixed in volatile trade on Monday as China posted larger-than-expected trade deficit for February. Key benchmark indices in UK, and France were down by between 0.06% to 0.11%. Germany's DAX was up 0.16%.
Asian markets were trading lower on Monday, 12 March 2012, as sentiment sagged after China reported a much bigger than expected trade deficit of $31.48 billion in February, turning around sharply from a $27.28 billion surplus in January. Key benchmark indices in China, Japan, Indonesia, Singapore, South Korea and Taiwan were down by between 0.03% to 1.1%. Hong Kong's Hang Seng rose 0.23%.
China's exports rose less than expected while imports climbed more than anticipated by economists, with the country importing record volumes of crude-oil in February 2012.
Trading of US index futures indicated a flat opening of US stocks on Monday, 12 March 2012. US stocks advanced on Friday, 9 March 2012 as investors brushed off the technical default by Greece and focused instead on another strong monthly jobs report. The Dow Jones Industrial Average advanced 14.08 points, or 0.11%, to 12,922.02. The Standard & Poor's 500 Index rose 4.96 points, or 0.36%, to 1,370.87. The Nasdaq Composite index gained 17.92 points, or 0.60%, to 2,988.34.
In economic data, US employers added 227,000 jobs to their payrolls in February 2012, government data showed, while the unemployment rate held at a three-year low of 8.3%.

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End-Session: IT stocks nudge higher

19-Jun-14: Key benchmark indices declined in choppy trade as macroeconomic worries resurfaced along with increase in crude oil prices. India imports majority of its crude oil requirements. The barometer index, the S&P BSE Sensex, shed 44.45 points or 0.18%, off 224.05 points from the day's high and up 132.14 points from the day's low. The market breadth indicating the overall health of the market was negative.

IT stocks gained after the US Federal Reserve on Wednesday, 18 June 2014, gave a positive assessment of the world's largest economy and committed to retaining its accommodative monetary policy. 

Index heavyweight and cigarette major ITC gained after a block deal was executed on the counter on BSE today, 19 June 2014. Shares of PSU OMCs and state-run upstream oil firms dropped after international crude oil prices firmed up. Another trigger for the slide in the shares of ONGC and Oil India was reports that oil ministry has proposed that gas price hike should be restricted to incremental production rather than the entire production. Those reports also weighed on the shares of another gas producer Reliance Industries. Many PSU stocks declined after market regulator the Securities and Exchange Board of India (Sebi) at its board meeting today, 19 June 2014, recommended that all listed companies including PSUs should have at least 25% public shareholding in three years.

Shares of United Spirits dropped as the open offer made by Diageo, the world's largest liquor maker, to acquire additional stake in the company ends today, 19 June 2014. Shares of companies whose fortunes are linked to orders from Indian Railways rose on reports the government is moving swiftly to allow foreign direct investment in railways. Among FMCG stocks, Colgate Palmolive (India) scaled record high. VIP Industries and D B Realty hit 52-week high. Rallis India and MindTree scaled record high. Shares of Bharat Electronics hit 52-week high. ALSTOM India also scaled 52-week high. Metal and mining stocks were mixed. Sugar stocks edged lower.

The S&P BSE Sensex shed 44.45 points or 0.18% to settle at 25,201.80, its lowest closing level since 16 June 2014. The index lost 176.59 points at the day's low of 25,069.66 in early afternoon trade. The index jumped 179.60 points at the day's high of 25,425.85 in early trade.

The CNX Nifty shed 17.50 points or 0.23% to settle at 7,540.70, its lowest closing level since 16 June 2014. The index hit a low of 7,502.55 and a high of 7,606.45 in intraday trade.

The market breadth indicating the overall health of the market was negative. On BSE, 1,586 shares declined and 1,406 shares gained. A total of 93 shares were unchanged.

The BSE Mid-Cap index shed 37.90 points or 0.42% to settle at 8,997.35. The BSE Small-Cap index lost 30.66 points or 0.31% to settle at 9,842.98. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 3710 crore, lower than Rs 4288.99 crore on Wednesday, 18 June 2014.

Among the 30-share Sensex pack, 17 stocks declined and the rest of them gained.

Index heavyweight and cigarette major ITC rose 0.99% to Rs 336.35 on volume of 14.40 lakh shares. A block deal of 12.61 lakh shares was executed on the counter at Rs 336.35 per share at 14:55 IST on BSE today, 19 June 2014.

United Spirits dropped 7.88% as the open offer made by Diageo, the world's largest liquor maker, to acquire additional stake in the company ends today, 19 June 2014.

Diageo made an open offer to public shareholders of United Spirits to acquire an additional 26% stake at Rs 3,030 per share. The offer opened on 6 June 2014 and ends today, 19 June 2014.

Diageo, through a subsidiary Relay B V, is the largest shareholder of USL, with a 28.78% stake (as on 31 March 2014).

United Spirits is yet to announce its Q4 and year ended 31 March 2014 results.

Colgate Palmolive (India) rose 3.9% to Rs 1,584.80, also its record high.

Mahindra & Mahindra rose 1.6% to Rs 1178, with the stock recovering on bargain hunting after recent slide. Shares of Mahindra & Mahindra (M&M) had declined 5.7% in three trading sessions to settle at Rs 1,159.40 on Wednesday, 18 June 2014, from a recent high of Rs 1,229.50 on 13 June 2014.

Oil and gas stocks dropped. State-run GAIL (India) declined 1.88%. Private sector oil explorer Cairn India fell 1.36%.

Shares of PSU OMCs dropped after international crude oil prices firmed up. BPCL (down 4.79%), HPCL (down 3.9%) and Indian Oil Corporation (down 2.88%), edged lower.

Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.

Shares of state-run upsteam oil firms dropped on concerns their subsidy burden will rise along with increase in crude oil prices. ONGC lost 4.95% at Rs 421.25. Oil India shed 6.24% at Rs 561. ONGC and Oil India share part of the under-recoveries of state-run oil refining-cum-marketing firms (PSU OMCs ) arising from the government-imposed price caps on prices three key fuels -- diesel, LPG for domestic use and kerosene.

ONGC and Oil India also slipped after media reports suggested that the petroleum ministry has proposed that higher gas price as per the Rangarajan formula could be allowed only for incremental production over and above the current levels. This is an alternative to applying the formula unconditionally from 1 July 2014. Restricting the higher price to additional output, the ministry feels, would incentivise production while also protecting the interests of consuming industries like power and fertilisers, reports said.

Private sector oil major Reliance Industries was down 2.51% to Rs 1,040.05. The stock hit a high of Rs 1,076 and a low of Rs 1,031.85.

IT stocks gained after the US Federal Reserve on Wednesday, 18 June 2014, gave a positive assessment of the world's largest economy and committed to retaining its accommodative monetary policy. US is the biggest outsourcing market for the Indian IT firms.

Tata Consultancy Services (TCS) (up 2.36%), Infosys (up 1.83%), HCL Technologies (up 1.57%), Wipro (up 1.22%) and Tech Mahindra (up 0.49%) gained.

MindTree advanced 3.82% to Rs 862 after hitting a record high of Rs 872 in intraday trade.

Dr Reddy's Laboratories rose 0.79%. The US Food and Drug Administration has reportedly announced that Dr Reddy's Laboratories is recalling 13,560 bottles of the high blood pressure drug metoprolol succinate in the United States after it failed a dissolution test. Metoprolol succinate extended release is a cheaper generic form of AstraZeneca Plc's Toprol XL. The recall was voluntarily started by Dr Reddy's on 23 May 2014, reports suggest.

Maruti Suzuki India fell 3.4%. Maruti Suzuki India during market hours today, 19 June 2014, said that the company has commissioned a 1 megawatts photovoltaic solar power plant at Manesar this month. Built with an investment of Rs 10.30 crore, the solar power plant will help the company offset CO2 emissions to the tune of over 1200 tonnes annually, Maruti Suzuki India said. The power generated from the solar plant at Manesar is synchronized with the natural gas based captive power plant and is used to complement the power requirement in the facility, Maruti said.

Kotak Mahindra Bank fell 3.96% as the Reserve Bank of India after market hours on Wednesday, 18 June 2014, notified that the foreign share holding in the private sector bank by Foreign Institutional Investors (FIIs) under Portfolio Investment Scheme (PIS) has reached the trigger limit. Hence, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the Reserve Bank of India.

Many PSU stocks declined after market regulator the Securities and Exchange Board of India (Sebi) at its board meeting today, 19 June 2014, recommended that all listed companies including PSUs should have at least 25% public shareholding in three years. Under the current rule, while non-PSUs are required to have minimum 25% public shareholding, PSUs are required to have only 10% minimum public shareholding.

Coal India (down 2.07%), Steel Authority of India (Sail) (down 4.41%), National Aluminium Company (Nalco) (down 3.55%) and NHPC (down 0.76%) declined. MMTC (up 2.38%) and NMDC (up 0.71%) rose. The government holds a stake of 80% or more in these state-run companies.

Zee Entertainment Enterprises was down marginally by 0.02% to Rs 276. A block deal of 10.79 lakh shares was executed on the counter at Rs 276.20 per share at 14:57 IST on BSE today, 19 June 2014.

Zee Media Corporation shed 0.25%. Zee Entertainment Enterprises after market hours on Wednesday, 18 June 2014, said its subsidiary Taj Television India will now distribute all the channels of Zee Entertainment Enterprises and Zee Media Corporation while also representing Turner channels as its authorized agent. Taj Television is India's largest distribution agency and has a repertoire of over 45 leading television channels.

Shares of companies whose fortunes are linked to orders from Indian Railways rose on reports the government is moving swiftly to allow foreign direct investment in railways. Simplex Casting (up 5%), Stone India (up 4.91%), Kalindee Rail Nirman (Engineers) (up 4.98%), Titagarh Wagons (up 4.99%), Kernex Microsystems (India) (up 1.52%), BEML (up 1.26%) edged higher.

As per reports, the commerce and industry ministry has initiated the exercise to allow 100% foreign direct investment (FDI) in several segments of railways, moving beyond its earlier plan to open select sectors such as high-speed train systems, dedicated freight lines built through the public-private partnership route and in certain areas of suburban rail networks. Currently, there is a complete ban on any kind of FDI in railways, except mass rapid transport systems.

Crompton Greaves fell 2.09%. Crompton Greaves today, 19 June 2014, said that the company is currently not negotiating any offer for sale of its land at Kanjurmarg in Mumbai. The company issued this clarification after news reports suggested the company has put up a part of its land parcel in the eastern suburbs of Mumbai for sale.

VIP Industries jumped 4.81% to Rs 114.45 after hitting a 52-week high of Rs 118.50 in intraday trade.

Rallis India gained 3.66% to Rs 212.40 after hitting a record high of Rs 217.70 in intraday trade.

D B Realty surged 4.35% to Rs 106.70 after hitting a 52-week high of Rs 116.20 in intraday trade.

Bharat Electronics gained 6.93% to Rs 1,946.80 after scaling a 52-week high of Rs 1,989.70 in intraday trade.

ALSTOM India surged 6.12% to Rs 579.90, also its 52-week high.

Sugar stocks edged lower. Simbhaoli Sugar Mills (down 4.97%), Shree Renuka Sugars (down 3.1%), Dhampur Sugar Mills (down 2.13%), Sakthi Sugars (down 2.11%), Triveni Engineering & Industries (down 2.06%), Bajaj Hindusthan (down 1.24%), Balrampur Chini Mills (down 0.98%) and Dwarikesh Sugar Industries (down 0.38%) declined.

Indian stocks witnessed high intraday volatility today, 19 June 2014. Key benchmark indices edged higher in early trade as Asian stocks rose after the US Federal Reserve after a monetary policy review on Wednesday, 18 June 2014, said a highly accommodative stance of monetary policy for the US economy remains appropriate at this juncture. Volatility struck the bourses in morning trade as the key benchmark indices retreated from intraday high hit in early trade only to regain strength later. The 50-unit CNX Nifty regained positive zone soon after reversing intraday gain to briefly turn negative. Volatility continued in mid-morning trade as the key benchmark indices regained positive zone after hitting fresh intraday low in negative zone. Key benchmark indices extended fall and hit fresh intraday low in early afternoon trade. Key benchmark indices recovered from the day's low in afternoon trade as European stocks rose in early trade there. Key benchmark indices rebounded from intraday low to regain positive zone in mid-afternoon trade. Intraday volatility continued in late trade.

Brent crude rose as investors worried about exports from Iraq as militant violence in the country continues. Brent crude futures for August delivery were up 27 cents at $114.53 a barrel. The contract had risen 81 cents to settle at $114.26 a barrel on Wednesday, 18 June 2014, the highest level since 6 September 2013.

Increase in oil prices has triggered macroeconomic worries for India which imports majority of its crude oil requirements. Increase in crude oil prices have raised concerns of increase in fuel price inflation and increase in India's current account deficit and fiscal deficit.

European shares edged higher on Thursday, 19 June 2014, as investor sentiment received a boost from the Federal Reserve which said the US economy is rebounding and that US interest rates would stay low for some time. Key benchmark indices in UK, France and Germany were up 0.82% to 0.87%.

Asian markets edged lower on Thursday, 19 June 2014, as crude rose as investors worried about exports from Iraq as militant violence in the country continues. Key benchmark indices in Singapore, Hong Kong, Indonesia and China fell by 0.06% to 1.55%. Key benchmark indices in Taiwan, South Korea and Japan rose by 0.13% to 1.62%.

Chinese Premier Li Keqiang vowed that his nation's economy will not suffer a so-called hard landing, a report said.

Trading in US index futures indicated a flat opening of US stocks on on Thursday, 19 June 2014. US stocks rallied on Wednesday, 18 June 2014, gaining the most in four weeks, after the Federal Reserve chief signaled no hurry to raise rates.

The Federal Reserve said growth is bouncing back and the job market is improving as it continued to reduce the monthly pace of asset purchases. The Federal Open Market Committee trimmed bond-buying by $10 billion for a fifth straight meeting, to $35 billion, keeping it on pace to end the program late this year.

In a statement, the Federal Open Market Committee (FOMC) said that if the incoming information broadly supports the committee's expectation of ongoing improvement in US labor market conditions and inflation moving back toward its longer-run objective, the committee will likely reduce the pace of asset purchases in further measured steps at future meetings. However, asset purchases are not on a preset course, and the committee's decisions about their pace will remain contingent on the committee's outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of such purchases. To support continued progress toward maximum employment and price stability, a highly accommodative stance of monetary policy remains appropriate at this juncture, the FOMC said. The committee was of the view that it will be appropriate to maintain the current zero to 1/4 percent target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the committee's 2% longer-run goal, and provided that longer-term inflation expectations remain well anchored.

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Winning Strokes:

My Morning Call on Acrysil Ltd (BSE Code-->524091) and BNK Capital Markets Ltd saw them hit the buyer freeze in the early trade. But why is the sudden optimism in BNK Capital Markets Ltd.....Is it an Indirect Play on some counters!!?? Hahaha...Keep Guessing!!! Tech Mahindra Ltd crossed an important resistance levels today. The scrip was recommended to the Paid Members around Rs.902--Rs.4 range. The scrip is all set to move up to Rs.1100 in the next few trading sessions: Kamanwala Housing Construction Ltd, hit its 3rd consecutive buyer freeze, the Paid members were asked to enter the scrip a couple of days back: K Sera Sera Productions Ltd does it in style today also, the stock closed up almost 3%: Relaxo Footwear Ltd jumped up 5.62% today, the stock is now all set to cross Rs.50 mark: There are some news coming in DMC International Ltd. The company has recently gone for some acquisitions (Konichiva Builders, Swen Realty & Media Ltd etc). It is worth noting that Swen Realty & Media Ltd (a company in the process of merger with the company) entered into an agreement with Traditional Karate Federation of India (TKFI), a national governing body of Karate in India, to solely market, manage and execute "2008 Euro Karate Championship" which was held on April 26 and 27, 2008 in Delhi. Sixteen countries, eight each from Europe and Asia participated in the event, which includes "International Workshop on Martial Art for Better Management". The revenue from both the events are expected to be around Rs 10 crore by way of sponsorship fees, workshop participation fees etc. This could give positive triggers to the company. Besides there are also some encouraging news on Jatropha front: Moreover, my earlier recommended Gandhi Special Tubes Ltd, BF Utilities Ltd, Radhe Developers Ltd, Associated Alcohol and Breweries Ltd, Kanishk Steel Ltd, SAAG RR Infra Ltd etc. did well today: Keep accumulating Ennore Coke Ltd on all declines due to some positive news happening on the counter:

The market surged in late trade to end close to the day’s high. It held firm despite the latest data showing a rise in inflation to highest level in more than three years. Firm global markets supported domestic bourses. The market had pared gains in mid-morning trade after a strong start ahead of the inflation data. It had surged in early trade on positive cues from global equities. Gains in banking, realty, IT, capital goods, and auto stocks powered today's rally on the bourses. Except BSE Metal index all the sectoral indices on BSE were trading in green. Metal stocks declined as global base metal prices retreated. The market breadth was positive. European markets which opened after Indian market, were strong. Asian markets which opened before Indian market, were firm. US stocks rose on Thursday, 1 May 2008, as a rebound in the dollar and retreating oil prices calmed fears about inflation, renewing investors' appetite for riskier assets, including undervalued technology shares. India's wholesale price index rose 7.57% in 12 months to 19 April 2008, accelerating from the previous week's annual rise of 7.33%, government data released today showed. The rate was the highest since a reading of 7.68% on 13 November 2004. The 30-share BSE Sensex provisionally ended up 323.96 points or 1.87% at 17,611.27. Sensex was up 158.62 points at the day's low of 17,445.93 hit in mid-morning trade. Sensex hit a high of 17,621.24 in early trade, its highest level since 29 February 2008. At the day’s high, Sensex rose 333.93 points. The broader based S&P CNX Nifty was up 59.5 points or 1.15% at 5,225.40. The BSE clocked a turnover of Rs 6549 crore today compared to a turnover of Rs 6909.57 crore on Wednesday, 30 April 2008. The market was closed on Thursday, 1 May 2008, for a public holiday. The market breadth was positive with 1,393 shares advancing as compared to 1306 that declined on BSE. 74 remained unchanged. The BSE Mid-Cap index rose 1.36% to 7,236.14 and BSE Small-Cap index rose 0.47% to 8,814.64. India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 2.49% to Rs 2,680.05 after the company said it had signed an agreement to buy a 90% stake in an exploration block in Peru. Banking stocks rose across the board despite surge in inflation. HDFC Bank (up rose 1.33% to Rs 1,535), ICICI Bank (up 6.55% to Rs 937), edged higher. India’s largest commercial bank State Bank of India rose 2.86% to Rs 1,827.10. The bank today reported 26% rise in net profit to Rs 1883 crore in Q4 March 2008 over Q4 March 2007. The results hit the market at the fag end of the trading session. Bank of India rose 5.36% to Rs 361 after it posted 70% rise in net profit to Rs 757 crore in Q4 March 2008 over Q4 March 2007. Finance Minister (FM) P Chidambaram on Thursday, 1 May 2008, said state-run banks are unlikely to hike interest rates in the near future. FM said banks were quite happy that only the CRR (cash reserve ratio) has been raised by the Reserve Bank of India and policy rates have been untouched. RBI on Tuesday, 29 April 2008, hike CRR by 25 basis points to 8.25% in its annual monetary policy review. Auto stock rose on strong monthly sales. India’s largest car maker by sales Maruti Suzuki India rose 6.6% to Rs 790.90. Maruti Suzuki India has recorded a 22.4% growth in domestic sales in April 2008 compared with April 2007. The company's exports grew 64.5% during the month compared with the year-ago period. In April Maruti Suzuki sold 59,539 units in the domestic market compared with 48,652 units in April 2007. Bajaj Holdings rose 3.38% to Rs 733.15. Erstwhile Bajaj Auto reported a 23.60% growth in motorcycle sales during April 2008 at 2,03,081 units against 1,64,304 units in the same month last year. The company's total two-wheeler sales also rose 23.08% during the month at 2,03,930 units as compared to 1,65,692 units in April last year. India’s largest motorbike maker by sales Hero Honda Motors declined 0.79% to Rs 844. Hero Honda Motors reported a 9.03% jump in motorcycle sales during April 2008 at 2,86,252 units against 2,62,544 units in the same month last year. India’s largest tractor maker by sales Mahindra & Mahindra rose 2.95% to Rs 690.15 on reports the company is exploring buying stake in Pune-based two-wheeler maker Kinetic Motor. India’s largest truck maker by sales Tata Motors rose 3.68% to Rs 685.05. Realty stocks rose. Housing Development and Infrastructure (up 10.8% to Rs 855.35), Indiabulls Real Estate (up 3.51% to Rs 567) and Unitech (up 3.03% to Rs 319.80) edged higher. India’s largest real estate player by market capitalisation DLF rose 2.11% to Rs 720.15. DLF reported a net profit of Rs 638.55 crore on a sales of Rs 1613.32 crore in Q4 March 2008. Capital goods stocks rose. Larsen & Toubro (up 4.58% to Rs 3,141.05), Bharat Heavy Electricals (up 0.65% to Rs 1,909.25), Suzlon Energy (up 0.63% to Rs 288.95) edged higher. IT stocks rose. Wipro (up 2.78% to Rs 502.20), Tata Consultancy Services (up 2.31% to Rs 940.75), Satyam Computer services (up 2.47% to Rs 494.10) and Infosys (up 2.04% t o Rs 1,789.50) edged higher. Metal stocks declined as global base metal prices retreated. Sterlite Industries (down 4.24% to Rs 825.60), Hindalco Industries (down 4% to Rs 185.85) and Tata Steel (down 2.52% to Rs 797) National aluminium Company (down 2.42% to Rs 438.40) and Steel Authority of India (down 1% to Rs 183.20) edged lower. Jaiprakash Associates (up 5.77% to Rs 286.95), ONGC (up 0.56% to Rs 1,039.20), ITC (up 0.43% to Rs 220.75) edged higher from Sensex pack. HDFC (down 1.11% to Rs 2,773.75), ACC (down 0.67% to Rs 753.55), Ambuja Cement (down 0.88% to Rs 112.90) edged lower from Sensex pack. India’s largest telecom services provider by sales Reliance Communications declined 3.2% to Rs 561.20. Reliance Communications is reportedly looking to bid for South African telecom major MTN. Reliance Communications is talking to leading global banks to raise resources and be ready, in case MTN's management decides to invite bids, the reports added. Indian Bank rose 2.23% to Rs 142.15. It has signed an agreement with Reliance Capital Asset Management to act as a corporate agent to sell the mutual fund products of Reliance Mutual Fund. Adani Enterprises rose 2.7% to Rs 868. The company's subsidiary, Adani Power, has filed a draft red herring form (DRHF) on 2 May 2008 with the Securities & Exchange Board of India for offering 29.69 crore equity shares (including employee reservation) to the public on 100% book building basis. The Dow Jones industrial average shot up 189.87 points, or 1.48 percent, to 13,010 on Thursday, 1 May 2008. The Standard & Poor's 500 Index surged 23.75 points, or 1.71 percent, to 1,409.34. The Nasdaq Composite Index climbed 67.91 points, or 2.81 percent, to 2,480.71. All these three major indexes closed at the highest level since the first half of January 2008 as equities extended a rally started in mid-March 2008 on optimism that credit markets and the economy have begun to stabilize. European markets opened strong. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 were up by between 1.02% to 1.19%. In Asia, key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were up by between 0.49% to 2.53%. China's markets remained shut for its two-day Labour Day holiday and will resume trading on Monday, 5 May 2008. Earlier, the US Federal Reserve on Wednesday, 30 April 2008, cut Fed Funds rate by 25 basis points to 2% and hinted at a pause in its recent campaign to lower borrowing costs. Inflation remains the biggest concern for the Indian stock market. The measures taken by the Union government to control inflation have also added to uncertainty on corporate profit. Finance Minister P Chidambaram on Tuesday, 29 April 2008, said government will impose export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. He said the measures were being taken to improve domestic supplies and to moderate prices. The government has already banned export of cement and non-basmati rice. Given that parliamentary elections are scheduled next year (in May 2009), the government may leave no stone unturned in its attempt to rein in inflation. This is bad news for commodity scrips like cement, steel etc. In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review. While the central bank has mentioned price stability as its key priority, the overall undertone of the policy is not as hawkish as market had feared. That in turn boosted the bourses with Sensex jumping 362.50 points or 2.13% on that day (29 April 2008) to settle at 17,378.46. The RBI governor Y V Reddy expects inflation to moderate in the next 2-3 months. Good Q4 results March 2008 results and firm global markets, triggered a solid rebound in the Indian market over the past few days. Buying by domestic institutions has supported the market. The structural growth drivers of the Indian economy remain intact – India’s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India’s economy. Rating agency CRISIL in its latest outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver. Another pointer to the fact that the long term India growth story remains intact is the outcome of the latest 2008 US-India Business Council (USIBC) survey, according to which, India is, and will continue to be, a premier destination for investment by US firms, with a large number of respondents rating future economic growth in India as highly sustainable.

Stone India Ltd makes a new 52-week high

Photo: Moneycontrol.com

The Stone India Ltd which was recommended around Rs.50.50 on February, 23, 2011, made a fresh 52-week high today at Rs.72.10. However, many of the investors, have accumulated the scrip when it fell to around Rs.14 last year. Congratulations to all of them.....

Stone India Limited (SIL) is engaged in manufacturing of Railway brake systems and various electro-mechanical products. The new innovative segment of Bio-toilets introduced for the Indian Railways has performed quite well. 

WINNING STROKES: THINK DIFFERENT:

My today's call ASM Technologies Ltd (BSE Code-->526433) hit the buyer freeze, in otherwise dull market. Most of the IT companies as expected will do well in the days to come due to improvement in the US economy and also due to due to appreciation of the INR against dollar. Today many IT companies were in fire, apart from ASM Technologies Ltd whose solutions partners are Microsoft, SAP, ORACLE etc. It could get indirect benefit from the Nuclear Deal because it has Bharat Heavy Electricals Limited and Bharat Electronics Limited, as its customers.

KEC International Ltd rose today to Rs.437 before going for meaningless correction. The company yesterday bagged two orders worth Rs.217 Cr taking the total order book as Rs.4700 Cr.

Ram Informatics Ltd rose to Rs.14.7 today in the early trade. The company has a whooping book value of Rs.49. Also Kajol Devgan Holds substantial stake in the company. The company is expected to get good benefits from the Rupee depreciation against the dollar which is going to increase in the days to come as, INR according to some analysts could slip to Rs.47, a dollar as the US economy strengthens and the price of Oil Cools down.

BGR Energy Systems Ltd moved up today before cooling down a bit. The company has a huge order book of Rs.11, 000 Cr, which the share is trading at a dismal price of Rs.325.

Kamanwala Housing Construction Ltd and Vijay Shanti Builders Ltd hit the buyer freeze today, as the US housing market is set to improve due to taking over of the two ailing mortgage giants in the US. Besides Kamanwala Housing Construction Ltd is coming up with a bonus issue date shortly. At the CMP both the scrip are available at dirt cheap price.

Stone India Ltd hit the buyer freeze on the news that the Company has executed a MOU with RailRunner Inc., USA to introduce the latest intermodal freight cars and transportation technology & system in India. Such a system will allow seamless point to point movement of containerized goods between road and railway in a very cost effective & environment friendly manner allowing container trains to run at passenger train speeds

The stocks in the IT, Defence, Banking, Construction, Real Estate, and those related to the Nuclear Deal are looking attractive.

Today's Intra-day Calls Clariant Chemicals India Ltd and Adani Enterprise Ltd hit the Intra-day targets.

More to the Paid Clients.........

Key benchmark indices ended a choppy session lower weighed down by weak Asian markets. The BSE 30-share Sensex declined 44.21 points. Firm European markets triggered a sharp recovery in afternoon trade, lifting the Sensex to positive zone but the market once again slipped into the red on fresh selling at higher level. The market breadth was negative.

Sterlite Industries tumbled 8%. Tata Motors was under pressure throughout the day, sliding around 4%. On the positive side Bharti Airtel and Maruti Suzuki India added over 2% each. Telecom pivotals were in demand. Capital goods heavyweights saw divergent trend. Refinery and sugar stocks bucked weak market trend.

European markets, which opened after Indian markets were trading higher. Key benchmark indices in UK, Germany and France rose between 0.39% and 1.24%.

Asian stocks dropped. Key benchmark indices in Japan, Hong Kong, Taiwan, Singapore, South Korea were down by between 0.93% and 3.51%. However China’s Shanghai Composite rose 0.11%.

The BSE 30-share Sensex declined 44.21 points or 0.3%, to settle at 14,900.76. It opened 130.64 points lower at 14,814.33. At the day’s high of 14,998.32 hit in mid-afternoon trade, the Sensex gained 53.35 points. At the day’s low of 14,714.92 hit in early trade, the Sensex lost 230.05 points.

The S&P CNX Nifty slipped 13.6 points or 0.3%, to end at 4468.70. Nifty September 2008 futures were at 4481, at a premium of 12.30 points as compared to spot closing.

The BSE Sensex is down 5386.23 points or 26.55% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6306.01 points or 29.73% away from its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth was negative on BSE with 1464 shares declining as compared to 1181 that advanced. 69 remained unchanged.

The BSE Mid-cap index fell 0.72% at 5,778.20 and BSE Small-cap index declined 0.26% to 6,964.61

The total turnover on BSE amounted to Rs 4550 crore as compared to Rs 4,505.75 crore yesterday, 8 September 2008. NSE's futures & options (F&O) segment turnover was Rs 43,958.71 crore, which was lower than Rs 45,977.53 crore on Monday, 8 September 2008. Among the 30-member Sensex pack, 20 declined while the rest gained.

Metal stocks suffered the most among the sectoral indices on BSE led by Sterlite Industries. India’s largest aluminium and copper maker by sales plunged 8.07% to Rs 572.15 on 23.05 lakh shares. It was the top loser from Sensex pack. Sterlite Industries today said its parent company, Vedanta Resources PLC approved a restructuring program of the group's businesses. Under the scheme, Sterlite will demerge its aluminium and energy businesses to Madras Aluminium which will be later renamed Sterlite Aluminum. Sterlite Industries shareholders would get seven shares in Madras Aluminium for every four shares held as part of a restructuring. The BSE Metal index lost 1.78% to 11,801.18.

Madras Aluminium jumped 20% to Rs 219 on high volumes of 49.41 lakh shares.

India’s top truck maker by sales Tata Motors lost 3.80% to Rs 419.90. The stock slipped after the company said on Monday, 8 September 2008, that the suspension of work at the Nano plant will continue due to limited clarity on the outcome of Sunday’s talks between the State government and the leadership of the just ended Trinamool Congress-led agitation outside the Singur site.

Ranbaxy, India’s top drug maker by sales fell 2.91% to Rs 450.90, after striking day’s high of Rs 480. The Japanese drug maker Daiichi Sankyo’s open offer to acquire an additional 20% stake at Rs 737 a share in the company ended on 4 September 2008.

\Capital goods heavyweights saw divergent trend. The BSE Capital Goods index fell 0.46% to 12,366.39. India’s largest power equipment maker by sales, Bharat Heavy Electricals declined 2.49% to Rs 1746 despite reports the company has won a contract worth Rs 2,200 crore for setting up a combined cycle power plant in Tripura on turnkey basis.

India’s largest engineering & construction firm by outstanding order book position Larsen & Toubro rose 0.09% to Rs 2739.85, after touching day’s low of Rs 2691.25

Real estate shares were subdued. The BSE Realty index fell 1.16% at 5,077.16. DLF, the country’s largest realty company by market capitalisation fell 1.36% to Rs 505.10. On Monday, 8 September 2008, the company received a clearance from the Securities and Exchange Board of India (Sebi) to go ahead with a buyback plan. In July 2008, DLF had announced its Rs 1,100-crore plan to buy back shares from existing shareholders at a price not exceeding Rs 600 a share.

Unitech, the country’s largest listed realty company, fell 0.46% to Rs 162.50.India’s largest private sector bank by net profit ICICI Bank shed 0.74% to Rs 715.45. Other banking shares State Bank of India (down 2.16% to Rs 1557.10), and HDFC Bank (down 0.67% to Rs 1292), slipped. The Bankex lost 1.28% to 7,368.33.

India’s second largest software services exporter Infosys Technologies fell 0.08% to Rs 1747.10. The stock came off day’s low of Rs 1700. HCL Technologies may reportedly counter bid Infosys for acquiring the UK-based SAP consultant Axon. According to reports, HCL may make an offer in the range of 690 pence per share for Axon compared to Infosys’ offer of 600 pence per share Tata Power Company (down 1.69% to Rs 1082.30), and Mahindra & Mahindra (down 1.42% to Rs 582), edged lower from the Sensex pack.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) was down 0.11% to Rs 2129.70 on 8.11 lakh shares. The stock moved in a range of Rs 2086.15 and Rs 2156.40 during the day.

India’s top small car maker by sales Maruti Suzuki India gained 2.36% to Rs 710 on 1.79 lakh shares. It was the top gainer from Sensex pack.

Telecom shares were in demand. India’s second largest cellular services provider in terms of market capitalisation Reliance Communications (RCom) advanced 1.57% to Rs 404.80. As per recent reports, RCom’s subsidiary Reliance Big Entertainment has acquired a majority stake in the US-based cricket webcasting portal, Willow TV, for an undisclosed amount.

Bharti Airtel, the country’s largest cellular services provider in terms of market capitalisation rose 2.15% to Rs 837.

India’s largest oil exploration company by market capitalisation Oil and Natural Gas Corporation (ONGC) rose 0.25% to Rs 1102. As per reports the company’s wholly-owned subsidiary ONGC Videsh (OVL) has bid for a 20% stake in the Angolan Block 32, which is owned by a consortium of firms led by French firm Total Exploration and Production Angola. The Angolan Block 32 reportedly has 1.5 billion barrels of oil reserves, the production of which is slated to start in 2012.

Reliance Infrastructure (up 1.24% to Rs 1071.50), Grasim (up 0.41% to Rs 2020) and TCS (up 1.40% to Rs 866.90) gained from Sensex pack.

Resurgere Mines & Minerals was the top traded counter on BSE with turnover of Rs Rs 262.80 crore followed by Austral Coke & Projects (Rs 239.50 crore), Reliance Industries (Rs 172.35 crore), Reliance Capital (Rs 155.25 crore) and Gokul Refoils (Rs 153.85 crore), in that order.

IFCI led the volumes chart on BSE notching volumes of 2.15 crore shares followed by Austral Coke & Projects (1.06 crore shares), Resurgere Mines & Minerals (86.50 lakh shares), Reliance Natural Resources (74.15 lakh shares) and Reliance Power (58 lakh shares), in that order.

Refinery stocks gained on drop in oil prices. Hindustan Petroleum Corporation (up 5.70% to Rs 245.55), Bharat Petroleum Corporation (up 2.26% to Rs 353), and Indian Oil Corporation (up 0.10% to Rs 432.90), rose. US crude for October 2008 delivery fell $1.18 to $105.16 a barrel today, 9 September 2008. It hit a five-month low of $104.70 a barrel yesterday, 8 September 2008.

Sugar stocks were in demand after the Supreme Court in an interim order on Monday, 8 September 2008, asked sugar mills in Uttar Pradesh (UP) to pay yo all outstanding cane arrears to growers for the 2007-08 crushing season at the rate of Rs 110 for a quintal within the next four weeks. Balrampur Chini Mills (up 3.31% to Rs 95.10), Shree Renuka Sugars (up 1.33% to Rs 121.75), and Bajaj Hindustan (up 0.91% to Rs 172.30), gained.

This is lower than the State Advised price of Rs 125 for a quintal fixed by the UP government for the current season.

Tech Mahindra rose 2.84% at Rs 796.10 on reports the firm bagged a $250 million, 7-year contract from a North Amercian telecom services firm. It has also won a smaller, 3-year deal from a Kuwait-based telecom firm for under $10 million. Revenues from both contracts will start flowing in from the last quarter of the current financial year, the reports added.

Idea Cellular rose 2.72% to Rs 85.10. The company has fixed 6 October 2008, as the closing date for its open offer for an additional 20% stake in Spice Communications. The offer opens on 17 September 2008.

Punj Lloyd slipped 1.36% to Rs 304.50. The company said its Singapore unit Punj Lloyd Pte has bagged an order worth Rs 167 crore from FWP, Singapore to carry out select mechanical work on Jurong Island, Singapore. The company made this announcement during trading hours today, 9 September 2008.

Ramco Systems jumped 6.80% to Rs 106 after the company said on Monday, 8 September 2008, its board will meet on 11 September 2008 to consider certain changes in the proposed rights issue to raise up to Rs 173 crore.

US stocks surged on Monday, 8 September 2008 as investors bet Washington's bailout of mortgage finance giants Fannie Mae and Freddie Mac would stabilize the US housing sector and calm jittery world financial markets. The Dow Jones industrial average advanced 289.78 points, or 2.58%, to 11,510.74. The S&P 500 index rose 25.48 points, or 2.05%, to 1,267.79, and the Nasdaq Composite index gained 13.88 points, or 0.62%, to 2,269.76.

My Very Recently (on Thursday & Friday mornings) recommended picks to the Paid Groups like Reliance Energy Ltd, Hindustan Oil Exploration Ltd, Dena Bank, Indian Bank, etc. did well Yesterday: Most of my earlier recommended picks like Hindustan Dorr Olive, Tips Industries Ltd, Noida Toll Bridge, Kamanwala Housing Construction Ltd, Goldiam International (Quickie Call),Paramount Communications, Southern Ispat (It was recommended at Rs.9 in 2006 with a target of Rs.35 in 18 months--24 months), Ansal Buildwell, MSK Projects, KEW Industries Ltd, BSEL Infrastructure Realty, SPL Industries Ltd, Sree Rayalaseema Alkalies, Pondy Oxides and Chemicals, Walchandnagar Industries, GTL Infrastructure, Stone India (Quickie Call), NCL Industries Ltd, W S Industries Ltd, Pritish Nandy, Gandhi Special Tubes, KRBL Ltd, Gayatri Projects, GMDC Ltd (Quickie Call), Rasoi Ltd, Rohit Ferro Tech, H B Portfolio Ltd, Assam Company etc. did well: Also NEPC India Ltd, Premier Explosives Ltd, BNK Capital Markets Ltd, etc. came out of the sellers freeze, which is encouraging:

Foreign institutional investors (FIIs) were net buyers of Rs 208.48 crore (provisional) on Friday, according to data released by BSE. While FIIs made gross purchases of Rs 4,689.63 crore, gross sales totalled Rs 4,481.15 crore. Domestic institutional investors (DIIs) were net buyers of Rs 248.35 crore on Friday. While DIIs made gross purchases of Rs 1,475.88 crore, gross sales totalled Rs 1,227.53 crore.FIIs were net sellers of Rs 1351.20 crore on Thursday, January 24, according to data released by SEBI on Friday. While FIIs made gross purchases of Rs 5,347.20 crore, gross sales totalled Rs 6,698.40 crore.Mutual funds (MFs) were net buyers of Rs 346.50 crore on Thursday. MFs made purchases of Rs 1,298 crore and sales of Rs 951.50 crore: But what will be the strategy from Monday? How will be the markets on Monday? What are sector one should watch from the next? Is the market on a uptrend or a corrective uptrend? What are the next Target? How long will Sanguine Media rise? What will be the Monday's recommended scrip in this extreme Volatile situation: What is the real story of behind my extreme bullishness in Kohinoor Broadcasting Corporation Ltd, Clutch Auto Ltd, Ennore Coke Ltd or Madhav Marbles & Granites Ltd? These questions will be answered in the Paid (Premium and Quickie) Groups:

Sensex soars 1,140 points in record-breaking rally:

In what has been a dramatic recovery, the market spurted today with the Sensex recording its biggest ever-single day rise in absolute terms on a closing basis. The rebound was solid coming in the backdrop of carnage on the street witnessed earlier in the week. Rally in global markets aided the sharp surge. Stocks across the globe were buoyed today by several factors including strong corporate sentiment in Germany and a return of some confidence in the US economy after solid employment data and a congressional fiscal package. The Bush administration's fiscal package includes $150 billion of tax rebates and business incentives meant to prevent a slowdown in the country's economy. Hindalco, Reliance Energy and ICICI Bank spurted. All the sectoral indices in BSE were in green. Realty stocks surged. Market breadth was strong. However, volumes were low. India's wholesale price index rose 3.83% in the 12 months to 12 January 2008 marginally higher than the previous week's rise of 3.79%, government data showed on Friday, 25 January 2008. The annual inflation rate was 6.15% during the corresponding week of the previous year. Meanwhile, all-India bank strike has prompted stock exchanges, BSE and NSE, to cancel clearing and settlement of trades, scheduled to be held today. Settlement of trades done on Wednesday, 23 January 2008, will be now done on Monday, 28 January 2008. The 30-share BSE Sensex soared 1,139.92 points or 6.62% to 18,361.66, its biggest ever singe day rise in absolute terms on a closing basis. It is also the first-ever, four-digit single day gain for the index. The Sensex had opened with a positive gap of 262.26 points. Continual buying in index pivotals led the index gain 1184.51 points at the day's high of 18,406.25 touched at the fag end of the trading session. The broader CNX S&P Nifty jumped 349.90 points or 6.95% to 5383.35. The BSE Mid-Cap index rose 6.41% to 8,021.12, while the BSE Small-Cap index rose 4.06% to 10,420.90. Both these indices underperformed the Sensex. BSE clocked a turnover of Rs 5199 crore compared to Rs 6,379.33 crore on 24 January 2008. Nifty January 2008 futures were at 5405, at premium of 21.65 points compared with spot closing of 5383.35. The NSE futures & options (F&O) segment turnover was Rs 39,007.70 crore, which was lower than Rs 39,442 crore on Thursday, 24 January 2008. The market breadth, which was weak till the mid-afternoon, turned strong in the last one hour of the trading session. On BSE, 1558 shares advanced as compared to 1164 that declined. 36 remained unchanged. India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 4.78% to Rs 2609.55. Among the Sensex gainers, Hindalco Industries surged 14.01% to Rs 173.35, Reliance Energy soared 11.81% to Rs 2030.25, Larsen & Toubro jumped 9.95% to Rs 3890.40, NTPC spurted 9.11% to Rs 222.25, Bajaj Auto sprout 9.02% to Rs 2300 and Mahindra & Mahindra jumped 7.76% to Rs 674.20. Banking stocks were in demand as sharp cut in US interest rates this week has reportely increased the possibility of a 25 basis points repo rate cut by Reserve Bank of India. The BSE Bankex rose 7.53% to 11,379.77. It outperform the Sensex. India’s largest private sector bank by assets ICICI Bank rose 11.16% to Rs 1259.25. Axis Bank soared 9.20% to Rs 1098.30, Andhra Bank moved up 8.94% to Rs 95.05, Bank of India spurted 8.44% to Rs 395.20, Oriental Bank of Commerce jumped 8.38% to Rs 272.80 and Allahabad Bank gained 7.76% to Rs 119.40. The Indian central bank will unveil quarterly review of its monetary policy on Tuesday, 29 January 2008. The BSE Bankex was up 7.87% at 11,416.03. India’s largest commercial bank State Bank of India rose 2.52% to Rs 2405. The bank on 24 January 2008 reported 69.82% rise in net profit to Rs 1808.64 crore 33.10% increase in operating income to Rs 15364 crore in Q3 December 2007 over Q3 December 2006. The BSE Realty index rose 10.41% to 11,198.06. It outperform the Sensex. Unitech surged 17.79% to Rs 439, Indiabulls Real Estate soared 13.75% to Rs 661.15, Parsvnath Developers spurted 8.95% to Rs 296.50, Omaxe jumped 6.53% to Rs 322 and DLF rose 5.89% to Rs 945.10. The BSE Metal index jumped 9.73% to 15,603.79. It outperform the Sensex. Steel Authority of India surged 15.03% to Rs 230.30, Hindalco Industries soared 14.01% to Rs 173.35, National Aluminum Company (Nalco) jumped 13.75% to Rs 436.40, Tata Steel moved up 6.37% to Rs 714.10 and Sterlite Industries rose 4.87% to Rs 786.75. FMCG stocks lagged behind in today’s rally. The BSE FMCG index rose merely 4.73% to 2,160.03. It underperform the Sensex. Tata Tea soared 10.24% to Rs 793.40, United Breweries spurted 6.82% to Rs 309.25, Hindustan Unilever jumped 6.24% to Rs 199.30, ITC gained 5.15% to Rs 198.20 and Rei Agro moved up 5% to Rs 985.65. Engineering & construction firm GMR Infrastructure soared 19.34% to Rs 194.40. The firm on 24 January 2008 reported 2750.91% surge in net profit to Rs 15.68 crore. Software services firm Patni Computer Systems rose 15.68% to Rs 268.60 after it said its board would consider a share buyback next month. Liquor maker United Spirits jumped 1.70% to Rs 1719.15. The company reportedly plans to acquire three more distilleries as well as enter into third-party contracts with six more as it aims to increase its volumes 33% to 100 million cases between two-three years. The company currently has a total of 67 distilleries, which includes 29 owned, 24 on contract and 14 associates. Offshore logistics provider Sical Logistics was locked at upper limit of 5% at Rs 214.75. The company is reportedly close to acquiring a freight forwarding company. According to reports, three companies are being evaluated for taking over and a talk with one of them is at an advanced stage. While not disclosing the name of this company, reports suggested that the target firm was a 25-year-old freight forwarding company, with a good clientele. Reliance Capital clocked the highest turnover of Rs 255.68 crore on BSE. Reliance Energy (Rs 207.85 crore), Reliance Natural Resources (Rs 199.77 crore), GMR Infrastructure (Rs 179.20 crore) and Reliance Industries (Rs 158.78 crore), were the other turnover toppers on BSE in that order. Ispat Industries reported the highest volume of 1.41 crore shares on BSE. GMR Infrastructure (99.65 lakh shares), Reliance Petroleum (90.56 lakh shares), Indusind Bank (69.90 lakh shares) and NTPC (34.25 lakh shares), were the other volume toppers on BSE inthat order. In Europe, key indices in UK, France and Germany were up by 1.01% to 1.60%. In Asia, key indices in Hong Kong, South Korea, Taiwan, Singapore, and Japan were up by 0.93% to 6.73%. The US stocks finished higher overnight after the Bush administration and lawmakers announced details of an economic stimulus plan aimed at stemming mortgage market losses. Dow closed up 108.44 points or 0.88% at 12,378.61, the Nasdaq climbed 44.51 points or 1.92% to 2,360.92 and the S&P 500 added 13.47 points or 1.01% to 1,352.07. Crude oil prices rose in Asian trade Friday as stock markets around the world firmed, China revealed strong growth and on expectations that OPEC will not increase crude output next week. In Asian deals Thursday, crude was trading at $89.77 a barrel. Light, sweet crude for March delivery jumped $2.42 to settle at $89.41 a barrel on the New York Mercantile Exchange on Thursday. It was a dramatic recovery on the bourses today coming in the backdrop of carnage on the street witnessed earlier in the week. Sensex had plummeted 2,283.76 points in just two days on Monday, 21 January 2008 and Tuesday, 22 January 2008. Market wide circuit filters were applied after an intra-day 10% fall occurred in key benchmark indices in minutes of commencement of trade on Tuesday, 22 January 2008. Margin calls created havoc on the bourses in causing the steep decline in share prices that was initially triggered by a setback in global markets and selling by foreign institutional investors. Credit crisis in the United State and fears of a US recession has hit global markets hard earlier in the week.

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