2008-Budget Highlights

Budget Highlights

Direct tax proposals to be revenue neutral. Indirect tax proposals to result in loss of Rs 5,000 crore.

Banking cash transaction tax withdrawn from April 1, 2009.

Commodities Transaction Tax to be introduced on the lines of Securities Transaction Tax.

Short-term capital gains increases to 15 per cent.

Five year tax holiday for promoting cultural tourism.

Five year tax holiday for setting up hospitals in tier II and tier III regions for providing healthcare in rural areas from April 1, 2008.

Fresh facilities, encouragement to sports and guest houses exempted from Fringe Benefit Tax.

For women, the income tax limit goes up from Rs 1.45 lakh to Rs 1.80 lakh. In case of senior women citizens, it increases from Rs 1.95 lakh to Rs 2.25 lakh. No change in corporate income tax.

New tax slabs will be: 10 per cent for 1,50,000 to 3,00,000, 20 per cent for 3,00,000 to 5,00,000 and 30 per cent above 5,00,000.

No change in rate of surcharge.

Every income tax assessees to get relief of minimum of Rs 4,000.

Changes in IT slab. Threshold of exemption for all Income Tax assesses raised from from 1,10,000 to 1,50,000.

Threshold for small service providers raised from Rs. eight lakh to Rs 10 lakh.

Asset management service under mutual funds, services by stock exchanges to be brought under Services Tax net.

Excise duty reduced from 16 to 8 per cent on water purification items.

Excise duty on small cars reduced to 12 per cent from 16 per cent and hybrid cars to 14 per cent.

General Centvat on all goods to be reduced from 16 per cent to 14 per cent. Excise duty reduced from 16 per cent to eight per cent on all pharmaceutical goods manufacture.

Duty on crude and unrefined sulphur reduced from five to 2 per cent to help raise domestic fertiliser production.

Duty withdrawn on naptha for production of polymers.

Customs duty on specified sports goods machinery down from 7.5 per cent to five per cent

Special Countervailing Duty on power imports.

Customs duty on specified life saving drugs reduced from ten per cent to five per cent. No change in peak rate of customs duty for non agriculture imports.

Tax to GDP ratio increased from 9.2 per cent in 2004-05 to 12.5 per cent 2007-08.

Fiscal deficit pegged at 3.1 per cent and revenue deficit at 1.4 per cent.

Plan expenditure fixed at Rs 2,43,000 crore and non plan expenditure at 5,74,000 crore.

To protect tigers, Rs 50 crore for National Tiger Conservation Programme. Bulk of it to be used to raise Tiger Protection Force.

Rs 624 crore allocated for Commonwealth Games.

Sixth central pay commission to submit report by March 31, 2008.

Allocation for defence to be increased by 10 per cent from Rs 96,000 crore to Rs 1,05,600 crore.

Three schemes to be introduced for providing social security to unorganised sector workers.

Rs 32,676 crore as subsidy to Public Distribution System.

Rs 750 crore for upgradation of 300 ITIs in 25 districts.

PAN requirement to be extended to all transactions in capital market subject to a threshold.

Risk Capital Fund to be set up in SIDBI.

Micro, small and medium enterprises to continue to get special attention. 75 lakh people to be covered by health insurance scheme. Allocation for Textile Upgradation Fund to be more than doubled.

Foreign investment of 3.5 to 8 billion dollars expected for exploration and development of new oil blocks.

The loan waiver scheme will benefit three crore small and medium farmers and cover loans totalling Rs 50,000 crore. One crore other farmers will benefit to the tune of Rs 10,000 crore in the waiver.

National Fund for Transmission and Distribution Reforms to be launched. Rs 800 crore for accelerated power reforms programme.

More reforms needed in coal and electricity sectors to ensure double digit growth in manufacturing sector.

The corpus of rural infrastructure development fund to be raised to Rs 14,000 crore.

By loan waiver scheme, the country is discharging a deep debt and sense of gratitude to farmers, says Chidambaram.

Loan waiver scheme to involve loans liability of Rs 60,000 crore and to benefit four crore farmers.

Allocation for Minority Affairs Ministry to be doubled from Rs 500 crore to Rs 1,000 crore.

Rs 540 crore for multi-sectoral development plan for minority concentration districts.

288 public sector bank branches to be opened in districts having minority community concentration.

Rs 7,200 crore to be allocated to the Ministry of Women and Child Development, marking an increase of 24 per cent

Rs 500 crore for corpus fund to subsidise all women Self Helf Groups for LIC cover for permanent disability.

A target of Rs 2.80 lakh crore for agriculture credit set for the coming year.

Rs 20,000 crore for irrigation projects under AIPB, showing an increase of Rs 9,000 crore over last year.

National Horticulture Mission to be given Rs 1,100 crore in 2008-09 with special focus on coconut cultivation.

Rs 75 crore to be given to Agriculture Ministry for providing mobile soil testing laboratories in 250 districts.

Rs 644 crore for National Agriculture Insurance Scheme, which will be continued pending evolving an alternative crop insurance scheme.

National Plant Protection Training Institute at Hyderabad to be made autonomous body and Rs.29 crore will be allocated to it

A scheme of debt waiver and relief for small and marginal farmers announced.

Complete waiver of loans for marginal farmers owning land up to one hectare and small farmers owning land up to 1 and 2 hectares.

Agricultural loans given by scheduled commericial banks, regional rural banks and cooperative credit institutions up to March 31, 2007 and due for December 31 that year will be covered under the waiver scheme to address the problem of indebtedness.

One time settlement of loans for other farmers.

Agriculture loans restructured and rescheduled by banks from 2004-06 and other loans normally rescheduled under RBI guidelines will also be eligible under the waiver scheme.

Implementation of debt waiver and debt relief will be completed by June 30 this year.

GDP growth slows down to 8.4 per cent during quarter ended December 31, 2007 as compared to 9.1 per cent a year ago.

Economy grew over eight per cent over 12 successive quarters since 2005, says Finance Minister P Chidambaram.

Keeping inflation under check is one of the cornerstones of the Government's policy.

Rice production estimiated at 94.08 million tonnes, maize 16.78 mt, soya bean 9.45 mt and cotton 23.38 million bales.

Agriculture credit doubled in the first two years of the government to reach Rs.2.40 lakh crore by March 2008.

Eleventh Plan started on a robust growth.

Gross budgetary support to be raised to Rs 2,43,386 crore, an increase of more than Rs 38,000 crore from the current level.

Allocation for Bharat Nirman to be raised to Rs 31,280 crore

Twenty per cent hike in education budget this year from Rs 28,674 crore to Rs 34,400 crore.

Sarva Shiksha Abhiyan will be provided Rs 13,100 crore, Mid Day Meal scheme Rs 8,000 crore, Secondary education Scheme Rs 4,554 crore.

410 additional Kasturba Gandhi Vidyalaya to be set up in backward blocks

Navodaya Vidyalayas to be opened in 20 districts with special focus on regions having SC/ST concentration. Allocation of Rs 130 crore for this purpose.

Rs.750 crore more to be given for merit scholarship to students up to 10th and 12th class.

Mid day Meal scheme extended to upper primary level in 3479 schools.

16 central universities to be opened in 2008-09.

Three IITs to be set up in Andhra Pradesh, Bihar and Rajasthan.

Schools of architecture and planning in Bhopal and Vijaywada. More institutes of higher education to be opened.

Rs 100 crore to be given to Information Technology Ministry to set up national knowledge centres.

Allocation for NRHM increased to Rs 12,050 crore.

Rs 992 crore for national AIDS programme.

A national programme for the elderly to be started at a cost of Rs. 400 crore.

Rashtra Swasthya Beema Yojana to start from April one in Delhi and Haryana. Rs 30,000 for each family belonging to unorganised sector.

Allocation for ICDS increased to Rs 6300 crore.

Rs 85 crore sanctioned for scholarships to students pursuing science education.

Indian Institutes of Science Education and Research to be set up at Bhopal and Thiruvananthapuram

NREGA scheme to be rolled out in all the 596 rural districts in the country in 2008-09.

Jawaharlal Nehru Urban Renewal Mission to get Rs 6,865 crore this year against Rs 5,482 crore past year.

Allocation for Rajiv Gandhi Drinking Water Mission to be increased to Rs 7,300 crore. Rs 200 crore for potable water in schools.

Rs 300 crore to be set aside for desalination plant in Chennai for drinking water.

Rs 500 crore for identifying urgent needs of development programmes of border areas like Arunachal Pradesh.

SC, ST and minority students to continue to get special attention.

Allocation for several schemes in North East raised from Rs 14,365 crore to Rs 16,400 crore.

Rs 75 crore sanctioned for Rajiv Gandhi National Fellowship Programme for SC/ST students pursuing M.Phil.

Rs 230 crore will be extended as additional equity to developmental organisations looking after the welfare of SC, ST, socially and economically backward classes and minorities.

SOURCE: BUSINESS LINE

Budget 2008 Analysis:

Budget 2008 Analysis: Ernst & Young
29 Feb, 2008, 1928 hrs IST,

Indirect tax:

General CENVAT rate reduced from 16 to 14 per cent and CST rate reduction announced, step in the right direction for introduction of GST by the year 2010. Mixed reaction expected from the software industry with increase in excise duty from 8 to 12 per cent on packaged software and similar announcement of levy of service tax at 12 per cent on customized software, silver lining of neutralizing input CENVAT and possible refund to exporters. Key focus appears to be on service tax, with several changes proposed. Threshold limit of exemption increased from Rs 8 to 10 lacs per year, likely to be a welcome move for small and medium service providers.

Adoption of PAN as uniform identification:

Adopting PAN as a uniform identification document in all financial markets will remove the unnecessary bother that different KYC identification documents created for constituents. However, it is essential that issuance and post-issue monitoring of PAN cards be strengthened to ensure identification of persons carrying multiple PANs.

waiver of loans to farmers:

The aggregate profits of all scheduled commercial banks in India for FY2005-06 and FY2006-07 was in the range Rs.24 thousand crore and Rs.31 thousand crore, respectively. Therefore, it should considered as a foregone conclusion that the Government will provide support for the debt relief. Whether this is in terms of hard cash or some other mechanism and over what period would the support be provided is something that requires clarity. Unless addressed clearly, this matter could result in accounting and financial reporting blips.

Oil & Gas:

Removal of tax holiday for refining activities would adversely impact downstream activities although reduction in customs duty on project imports will encourage infrastructure development in the oil and gas sector e.g. pipelines, LNG terminals etc. As regards upstream, service tax continues to apply on exploration services in spite of the widespread need to boost exploration for oil and gas. Lastly, there is a positive step forward as regards transparency on oil bonds.

Auto Industry:

▪ FM accelerates the growth in Auto Industry by further reduction and rationalization of duties

▪ Small cars, two/three-wheelers & buses become cheaper due to reduction of excise duty from 16% to 12%

▪ A strong boost to Hybrid & Electric car segment by reduction (24% to 14%) & elimination of excise duty (8% to nil) respectively

▪ Weighted deduction of 125% to significantly benefit the outsourcing of R&D in the automobile sector

Pharmaceuticals and Biotechnology Industry:

Impetus provided to the industry by reducing excise duty to 8% on all drugs, customs duty concession on life saving drugs and tax holiday for new hospitals.

Aviation Industry:

Budget 2008 has not brought much cheer to the aviation industry, except exempting import of helicopter simulators from basic customs duty. On the other hand, leasing of aircraft could be liable to service tax where VAT is not applicable.

Telecom Industry:

The telecom industry would surely be disappointed with the budget proposals. Non of their demands have been met. There is neither any reduction/rationalization in the tax incidence nor has the demand for tax holiday for new entrants and facilitation of tax neutral reorganization/consolidation by permitting tax holiday on transfer of a telecom undertaking through mergers/demergers, been met. Instead the cost of owning a mobile phone may marginally go up with the levy of 1 percent NCCD on mobile phones.

Power Sector:

▪ Sector to benefit from National Fund proposed for transmission and distribution reform projects

▪ 4th UMPP to be awarded shortly and bidding urged for 5 more UMPPs is a positive

▪ Withdrawal of exemption of special CVD of 4% on imports for non-mega power projects and high voltage transmission projects would increase project costs

▪ Enhanced outlay on following initiatives is a positive

▪ Rs 800 crores for Accelerated Power Development and Reforms projects

▪ Rs 5500 crores for Rajiv Gandhi Gramin Vidyutikaran Yojana

▪ Increase in the composition scheme service tax rate from 2 percent to 4 percent likely would increase construction costs

Retail Sector:

Supply Chain: Excise duty has been proposed to be fully exempted on specified refrigeration equipment for the installation of cold storage, cold room, or refrigerated vehicle on end use basis.

Packaging: Excise duty reduced from 16% to 8% on packaging material in open top sanitary (OTS) cans, aseptic packaging paper and aseptic bags

Food industry: Excise duty on specified prepared food items reduced from 16% to 8%

Shop in Shop - Service tax: Clarification on permitting use of space in any immovable property to qualify as renting of property liable to service tax

General:

1. General rate of excise duty has been reduced from 16% to 14%

2. Proposed amendment in section 35D seeks to extend the benefit of amortization of preliminary expenses to players in FMCG

3. Proposed amendment in section 115O seeks to abolish double taxation of dividend. However, this is beneficial only for companies having one tier structure.

4. Fringe Benefit tax provisions relaxed for certain expenses

5. New service category under service tax - Information Technology Software Services - this will have an impact on customized software

Mining:

Appointment of coal regulator is a welcome step. Custom duty has been reduced from 5% to 0% for iron, steel and aluminum scrap. Further, increase in export duty on chrome ore (from Rs 2000 per mt to Rs 3000 per mt) will increase its availability for domestic users.

Hospitality Industry:

▪ 100% tax holiday for five years provided in respect of new hotels (2, 3 & 4* category) located in specified district with a world heritage site (total 22 district to benefit) during 5 year period between April 1, 2008 and March31, 2013.

▪ Avoidance of double taxation of dividend income, though limited to only one tier structure only.

▪ Service tax hiked from 2% to 4% in respect of Works Contract under the Composition Scheme.

▪ Services of a travel agent, located outside India to an international tourist staying outside India for booking a hotel accommodation in India is now exempted from service tax.

▪ The use of gensets, cars, dumpers, any other equipment taken hire and not attracting VAT would now attract service tax.

Real Estate:

Overall, the Budget is positive for real estate industry with measures such as tax exemption on reverse mortgage income, tax incentives to hospitals and hotels, elimination of double dividend taxation in case of holding companies. The much awaited REIT taxation seems to have escaped the radar of the Finance Minister.

source: E.T

Gold Price Target Rs 4625 per gram By The End Of The Decade - CLSA

CLSA

Gold: Taking Off, End Of Decade Target $ 3700 an Ounce maintained

Christopher Wood, Dr. Jim Walker

Gold exhibiting little of its own characteristics in the past 2 years, moving in one direction just like any other commodity. But things are ready to change as debased currencies, dwindling Gold Supplies, unwinding of Gold Futures by Gold miners, low to negative interest rates, rising inflation and falling Stocks and Bonds force investors to shift as much as a fourth of their savings into Gold.

Buy Gold. As a panic stricken Ben demonstrated last night, the Central Bank has no answer to the problems they have created over the last 5 years but to debase their paper currencies even more. The yellow metal is the safest store of value we can all own.

The growing evidence of slowing growth is also why it is wrong to be increasing equity weightings and reducing bond allocations as a result of applying Fed model methodology. The current environment of falling bond yields and rising credit spreads is negative for equities as it is deflationary market action.

A long only asset portfolio for US dollar pension funds now includes 15 per cent in Unhedged Gold-Mining stocks and 10 per cent in Gold Bullion.

Gold Price Target By The End Of The Decade Maintained at $ 3700 per ounce equivalent to roughly Rs 4625 per gram, against the current MCX Gold at Rs 1225 per gram.

BUDGET & MARKETS-3

Will the market move to Budget tunes?
28 Feb, 2008, 2007 hrs IST, INDIATIMES NEWS NETWORK

MUMBAI: As the nation looks forward to tax benefits by the finance minister in United Progressive Alliance government's last budget, market pundits feel that the capital market will have little to cheer as the budget is likely to be a populist one, focusing on inclusive growth.

Empirical data suggests that there is no thumb rule to conclude what course the market takes pre- and post-budget. On the eve of this year's Budget, equities erased most gains to end flat as positive economic data was overshadowed by poor global cues. Ahead of the Budget, investors were unwilling to take fresh bets waiting for some news to improve the mundane sentiment in the market. Bombay Stock Exchange's Sensex ended flat at 17,824.48, after rising to a high of 17,921.51 and slipping to a low of 17,690.16, intra day.

Let's see how the market has responded to the budget presented by the UPA government since it came into power.

Formation of UPA government in May 2004-05

The BJP lost the elections in May 2004 and the Indian stock market witnessed one of the worst day in its history termed as "Black Monday." Spooked that the new Congress government and its Left allies could reverse some of the market-friendly policies of the NDA, including disinvestment, foreign hedge funds began their exit early on May 17.

As a result, in just 22 minutes of trading, the Sensex managed to freefall 842 points or 17 per cent, its biggest intra-day fall then. By the time the new UPA government intervened, the Sensex had fallen an astronomical 565 points (11 per cent) to close at 4,505. The carnage had left investors poorer by Rs 1.33 lakh crore in just a few hours. The benchmarks had hit circuit filters twice that day.

First budget by Finance Minister P Chidambaram

July 8, 2004

A day before the Budget:

The indices ended flat ahead of the budget awaiting finance minister's proposal for the next year. The BSE Sensex ended 28 points or 0.55 per cent up at 4955.97.

Budget day:

Though no long term capital gain tax on investments in securities for over one year came as a positive move, 0.15 per cent transaction tax on purchases of securities on stock exchanges resulted in selling across the board. There were widespread protests by the broking community at various centres opposing the new levy. The Sensex shed 112 points or 2 per cent to close at 4,843.84.

A day after:

The market witnessed buying Friday led by foreign institutional investors and domestic financial institutions. The Sensex was up 102 points or 2 per cent to close at 4,945.48.

Year 2005:

A day before the Budget:

Investors were on a profit-booking spree, selling blue chip shares ahead of Union Budget '05-06. They, however, bought selectively, targeting shares of sectors/companies that were likely to gain from the government's liberal foreign direct investment (FDI) policy. The session just before the Budget, Friday 25 February, saw the Sensex settle at 6570, down 4.5 points. Over the weekend, the market also had to digest the Railway Budget was well as election results in the three state Assemblies on Sunday.

Budget day:

The Sensex ended at an all-time high of 6,714 as institutions and investors who were on a wait-and-watch mode bought stocks after the FM announced a slew of measures to boost investment in the capital market and a cut in corporate and personal income tax. Thought this Budget saw an uptick in securities transaction tax, it was inline with market expectations.

The FM also accepted the long-standing demand for keeping futures and options outside the purview of the taxes on speculative transactions. He also said that Sebi may allow FIIs to use shares as collateral for margin payments while trading in derivatives. Rough estimates show that the proposal could bring down trading rates by nearly 30% for FIIs.

A day after:

The euphoria over P Chidambaram's Budget proved short-lived as investors were quick to get into profit-booking mode. The Sensex ended at 6,651, down 63 points or 0.9%.


Year 2006

A day before the Budget:

Sentiment remained firm as investors chose to buy into the market a day before the Budget in anticipation of continuation of economic reforms and tax sops for routing small savings into the capital markets. The 30-share index closed 0.8 per cent or 81 points higher at 10,282.

Budget Day:

Soon after the FM announced the 25% hike in STT rates across the board, the market reacted sharply to plunge into the red but recovered smartly. Sensex swung wildly to finally end up 88 points or 0.8% at 10370.

Investors discovered benefits for FMCG, auto and some consumer sectors, but were miffed that he did not dismantle the Fringe Benefit Tax - and instead hiked Securities Transaction Tax.

A day after:

The 30-share Sensex surged to its biggest one-day rise on the back of huge infrastructure investments, which the finance minister announced in the Budget speech. The sensex rose 195.2 points or 1.8% to end at 10565.47 - an all-time high.

The finance minister announced major initiatives for the power and roads sectors in a bid to boost the country's infrastructure. He said the government plans to increase power generation by about 40,000 MW in three years.

Year 2007

A day before the Budget:

Poor performance of the Congress party in state polls, concerns that the budget may disappoint and weakness in Asian markets caused the BSE benchmark Sensex trip 170 points or 1.25 per cent to close at 13,478.83. The index was more prone to the overseas developments than domestic cues.

Budget day:

It was a "market neutral" budget according to stock market analysts. However jittery global markets and hike in dividend distribution tax and educational cess, spooked the market badly. The Sensex plunged 541 points or 4 per cent to close at 12,938.

A day after:

Benchmarks staged a comeback bucking the weak trend in Asian markets. The Sensex closed at 13,159.55, up 221.46 points, or 1.71 per cent. Both indices, which started on an uncertain note after the 4 per cent fall on Wednesday, rebounded sharply mid-way through the session on Thursday on short-covering in the derivatives segment.

For the market:

The finance minister showed the green light for delivery-based short-selling by institutions. Permitting institutions to short-sell was seen as paving the way for the development of a vibrant stock lending and borrowing mechanism.

The step to hike dividend distribution tax from 12.5 per cent to 15 per cent and the hike in the educational cess didn't go well with the traders who went on further liquidating their positions.

SOURCE: Economic Times

Aries Agro Ltd (CMP - Rs 173.85)

The company manufacturing plant nutritional products, is planning to set up four new manufacturing facilities at Panvel (Maharashtra), Ahmedabad, Hyderabad and Lucknow at an investment of Rs 400 mn. The new facilities would enhance the company’s production capacity by fivefold to 100,000 tonnes per annum, from the current 21,000 tonnes. Besides, it also plans to increase its retailer network to 100,000 from 65,000 spread across 20 states. Currently the company has four manufacturing facilities at Mumbai, Hyderabad, Kolkata and Bangalore. Its new Hyderabad facility will commence operations by March 08, while the remaining will be operational by September 08. The stock is trading at 10x its FY08 estimated EPS of Rs 17.3. We recommend ‘Accumulate’ on the stock.

nw

'Buy' Fame India (SHRINGAR CINEMA), Target Rs 105

Religare puts 'buy' on Fame India, target Rs 105
28 Feb, 2008, 1725 hrs IST, INDIATIMES NEWS NETWORK

MUMBAI: Religare Securities has downgraded the target price of Fame India (formerly Shringar Cinema) to Rs 105 from Rs 147 and has maintained ‘buy’ rating on the stock.

Fame India has tied up with HDIL through its subsidiary Shringar Films, for programming content for the realty major's upcoming multiplexes. Shringar Films has also signed up four more properties in Pune for programming.

Fame has opened a 4-screen property in Bangalore with 993-seats. It plans to launch three more properties in Kolkata, Mumbai and Bangalore by March 2008 with a total of eight screens and 2,058 seats. Fame also proposes to foray into film production with an investment of Rs 10 crore, says Religare.

The company has posted a 41 per cent year on year growth in revenue during October-December 2007-08 with a flat net profit of Rs 3.6 crore, mainly due to higher operating costs. The occupancy level for the quarter has been below Religare’s expectations and the company has rescheduled or cancelled some property launches. Consequently, the brokerage has reduced their estimate for 2007-08 and 2008-09.

The brokerage expects Fame to register 53 per cent CAGR in its consolidated revenue over FY07-FY09. Also, as the number of multiplexes rise, fixed overheads will be diluted, giving rise to higher operating margins, says Religare.

Religare have not considered the theatre programming ventures through Fame's subsidiary and the planned film venture in their projections due to lack of clarity.

Govt issues 22 more telecom licenses

Govt issues 22 more telecom licenses
28 Feb, 2008, 1825 hrs IST, PTI

NEW DELHI: The government on Thursday issued 22 more licenses to new players, including Idea Cellular and realty major Unitech, a move that would bring in competition and lower mobile tariffs.

Unitech Developers has been given licenses for 12 circles including in Andhra Pradesh, Gujarat, Haryana, Punjab, Rajasthan and Bihar.

Birlas-owned Idea Cellular got licenses for eight circles. This would make Idea a pan-India operator. Idea was given license in Punjab yesterday on a day when the government issued a total of 22 permits.

Datacom Solutions, in which Videocon has a majority stake, has been awarded licenses for two more circles in addition to 19 given yesterday, a senior official in the Department of Telecom (DoT) said.

On spectrum (radio frequency), officials said that no final decision has been taken as yet as to when the process of allocation would begin. The DoT is assessing the availability in each circle, besides continuing negotiations with the Defence ministry to get spectrum vacated at the earliest.

Meanwhile, on a petition filed by Idea and Spice communications, the telecom tribunal TDSAT today passed an interim order that the date of application of new players be considered for issuance of licenses and spectrum.

The officials said application date has no meaning as most players are being issued permits simultaneously, and in all probability, spectrum would also be alloted in a similar fashion. Spice Communications, which was given LoI last month for five circles, is likely to get licenses along with Unitech tomorrow for the remaining 10 circles.

As of now, licenses are being issued on the basis of first-come-first-served as per the payment of license fees.

E.T

NIIT Technologies drops after German acquisition

NIIT Technologies declined 1.15% to Rs 133.45 at 14:26 IST on BSE after the company said it has signed an agreement to buy out Germany's Softec GmbH for an undisclosed amount.

The company made this announcement during trading hours today, 28 February 2008.

Meanwhile, BSE Sensex was down 79.35 points or 0.45% to 17,746.64, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 1.73 lakh shares were traded in the counter. The scrip had an average daily volume of 1.74 lakh shares in the past one quarter.

The stock hit a high of Rs 134.75 and a low of Rs 132.18 so far during the day. The stock had a 52-week high of Rs 425.34 on 28 May 2007 and a 52-week low of Rs 90 on 22 January 2008.

The small-cap scrip had underperformed the market over the past one month till 27 February 2008, declining 10.09% compared to the Sensex’s decline of 1.47%. It had also underperformed the market in the past one quarter, declining 37.67% compared to Sensex’s decline of 6.20%.

The company’s current equity is Rs 58.70 crore. Face value per share is Rs 10.

The current price of Rs 133.45 discounts its Q3 December 2007 annualized EPS of Rs 18.03, by a PE multiple of 7.40.

Softec GmbH focuses on providing information technology (IT) solutions and services worldwide in the airline revenue accounting and operations space.

NIIT Technologies’ net profit declined 8.32% to Rs 28.54 crore on 0.76% growth in net sales to Rs 118.37 crore in Q3 December 2007 over Q2 September 2007.

The Delhi-based IT company services customers in North America, Europe, Asia and Australia and focuses on specific industry verticals, including banking, financial services and insurance, travel & transportation and retail & manufacturing.

Bharat Forge revvs up on fund raising plan

Bharat Forge gained 1.72% to Rs 290.50 at 15:01 IST on BSE after the company said on Wednesday, 27 February 2008 it has approved a proposal to raise debt of upto Rs 400 crore by way of external commercial borrowings or a bank loan.

The company made this announcement after trading hours on Wednesday, 27 February 2008.

Meanwhile, BSE Sensex was down 43.70 points or 0.25% to 17,782.29, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 31,166 shares were traded in the counter. The scrip had an average daily volume of 1.10 lakh shares in the past one quarter.

The stock hit a high of Rs 294.95 and a low of Rs 280 so far during the day. The stock had a 52-week high of Rs 389.75 on 4 January 2008 and a 52-week low of Rs 254 on 24 August 2007.

The mid-cap scrip had outperformed the market over the past one month till 27 February 2008, declining 0.82% compared to the Sensex’s decline of 1.47%. It had underperformed the market in the past one quarter, declining 9.73% compared to Sensex’s decline of 6.20%.

The company’s current equity is Rs 44.53 crore. Face value per share is Rs 2.

The current price of Rs 290.50 discounts its Q3 December 2007 annualized EPS of Rs 10.45, by a PE multiple of 27.80.

The company also approved an issue of convertible warrants to the founders totaling Rs 300 crore to help fund its expansion in to the non-auto goods sector, it said in a statement.

Bharat Forge’s net profit declined 7.6% to Rs 58.18 crore on 16.7% growth in net sales to Rs 556.73 crore in Q3 December 2007 over Q2 September 2007.

Bharat Forge the flagship of Kalyani group is a today among the largest and technologically most advanced manufacturers of forged & machined components. The company has manufacturing operations across nine locations and six countries 2 in India, 3 in Germany and one each in Sweden, Scotland UK, USA and China.

India Cements strengthens

India Cements gained 2.32% to Rs 215.75 at 14:02 IST on BSE after the company said on Thursday, 28 February 2008 it has acquired a second bulk cargo carrier with capacity of 38,002 deadweight tonnage from Essar Shipping, Mumbai.

The company made this announcement during trading hours today, 28 February 2008.

Meanwhile, BSE Sensex was down 37.40 points or 0.21% to 17,788.59, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 1.55 lakh shares were traded in the counter. The scrip had an average daily volume of 4.12 lakh shares in the past one quarter.

The stock hit a high of Rs 217.20 and a low of Rs 210.10 so far during the day. The stock had a 52-week high of Rs 333 on 14 December 2007 and a 52-week low of Rs 145 on 8 March 2007.

The mid-cap scrip had outperformed the market over the past one month till 27 February 2008, gaining 1.66% compared to the Sensex’s decline of 1.47%. It had underperformed the market in the past one quarter, declining 27.28% compared to Sensex’s decline of 6.20%.

The company’s current equity is Rs 281.87 crore. Face value per share is Rs 10.

The current price of Rs 215.75 discounts its Q3 December 2007 annualized EPS of Rs 18.03, by a PE multiple of 11.97.

India Cements’ net profit rose 59.3% to Rs 127.05 crore on 56.2% growth in net sales to Rs 737.85 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and marketing cement.

Godrej Industries banks on IPO of unit

Godrej Industries was locked at upper limit of 5% at Rs 278.10 at 13:43 IST on BSE extending gains for third consecutive day on reports it plans to list its real estate arm.

The stock has gained 10.22% from Rs 252.30 on Tuesday, 26 February 2008, boosted by the media reports.

Meanwhile, the BSE Sensex was down 47.49 points, or 0.27%, to 17,778.50, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 2.74 lakh shares of the scrip were traded. The stock had an average daily volume of 2.04 lakh shares on BSE in past one quarter.

The scrip had touched a low of Rs 274 so far during the day. The stock had hit a 52-week high of Rs 504.50 on 18 December 2007 and a 52-week low of Rs 138 on 8 March 2007.

The scrip had underperformed the market in the one month to 27 February 2008, sliding 14.19% as against the Sensex's 1.47% decline. It had, however, outperformed the market in the past three months, falling 1.34% against the Sensex's 6.20% slide.

The mid-cap diversified firm has an equity capital of Rs 31.98 crore. Face value per share is Rs 1.

At the current price of Rs 278.10, the scrip trades at a PE multiple of 67.14, based on Q3 December 2007 annualised EPS of Rs 4.14.

Godrej Properties, will file papers for an initial public offer with the markets regulator, Securities and Exchange Board of India in a few days, reports suggest. Godrej Industries currently holds 81.69% in the real estate unit, of which 10% will be diluted, the reports added.

Godrej Properties is currently developing about 20 million square feet in Mumbai, Pune, Kolkata, Bangalore and Hyderabad.

The net profit of Godrej Industries rose 2.5% to Rs 33.06 crore on 24.8% rise in sales to Rs 190.97 crore in Q3 December 2007 over Q3 December 2006.

Godrej Industries is India's leading manufacturer of oleochemicals and makes more than a hundred chemicals for use in over two dozen industries. It also manufactures edible oils, vanaspati and bakery fats. Besides, it operates businesses in medical diagnostics and real estate.

US tie-up boosts Astra Microwave Products

Astra Microwave Products moved up 5.29% to Rs 107.40 at 13:26 IST on BSE after the company said it had tied-up with a US firm to make and supply combat aircraft to the Indian defence ministry.

The stock has risen 14.31% from Rs 93.95 on Tuesday, 26 February 2008, when it announced the deal.

Meanwhile, the BSE Sensex was down 86.02 points, or 0.48%, to 17,739.97, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 2.18 lakh shares of the scrip were traded. The stock had an average daily volume of 89,604 shares on BSE in past one quarter.

The scrip had touched a high of Rs 109.70 and a low of Rs 102 so far during the day. The stock had hit a 52-week high of Rs 187 on 18 July 2007 and a 52-week low of Rs 73.50 on 15 February 2008.

The scrip had underperformed the market in the one month to 27 February 2008, falling 2.06% as against the Sensex's 1.47% decline. It had also underperformed the market in the past three months, sliding 17.97% against the Sensex's 6.20% slide.

The small-cap electronics equipment maker has an equity capital of Rs 10.75 crore. Face value per share is Rs 2.

At the current price of Rs 107.40, the scrip trades at a PE multiple of 32.25, based on Q3 December 2007 annualised EPS of Rs 3.33.

Astra Microwave Products’ net profit declined 45% to Rs 4.48 crore on 22.4% growth in net sales to Rs 26.47 crore in Q3 December 2007 Q3 December 2006.

The company is engaged in designing and manufacturing high value added RF and microwave super components and sub systems. The products are widely used in VSAT operations, radars, navigational equipment, public mobile trunk radio, WLL, cellular GSM/DCS or PCS networks.

Jain Irrigation extends gains as budget seen focussing on farm sector

Jain Irrigation Systems moved up 2.81% to Rs 728.40 at 12:19 IST on BSE, on expectations that the Union Budget 2008-09 is likely to increase spending in agriculture sector, which may boost demand for the company’s products.

Meanwhile, the BSE Sensex was down 72.38 points, or 0.41%, to 17,753.61, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 62,837 shares of the scrip were traded. The stock had an average daily volume of 43,478 shares on BSE in past one quarter.

The scrip had touched a high of Rs 730 and a low of Rs 706 so far during the day. The stock had hit a 52-week high of Rs 765.95 on 4 December 2007 and a 52-week low of Rs 399 on 28 February 2007.

The scrip had outperformed the market in the one month to 27 February 2008, adding 10.05% as against the Sensex's 1.47% decline. It had also outperformed the market in the past three months, soaring 18.03% against the Sensex's 6.20% slide.

The mid-cap farm products maker has an equity capital of Rs 68.07 crore. Face value per share is Rs 10.

At the current price of Rs 728.40, the scrip trades at a PE multiple of 27.46, based on Q3 December 2007 annualised EPS of Rs 26.52.

With India's farm sector expansion seen slowing, the Budget is expected to focus heavily on raising agricultural productivity and improving the lives of farmers. Jain Irrigation Systems manufactures micro-irrigation systems. It also makes plastic sheets plastic pipes, high-tech agriculture, processed fruits and vegetables.

Jain Irrigation Systems’ net profit rose 43.3% to Rs 44.85 crore on 36.2% growth in net sales to Rs 411.72 in Q3 December 2007 over Q3 December 2006.

Advani Hotels soars ahead of stake sale

Advani Hotels & Resorts (India) was locked at upper limit of 5% at Rs 62.65 at 11:36 IST on BSE after textile accessories maker Arrow Webtex announced plans to acquire 20% in the hotel firm.

Meanwhile, the BSE Sensex was down 70.63 points, or 0.40%, to 17,755.36, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 9370 shares of the scrip were traded. The stock had an average daily volume of 61,236 shares on BSE in past one quarter.

The stock had hit a 52-week high of Rs 106 on 20 December 2007 and a 52-week low of Rs 29.65 on 7 March 2007.

The scrip had underperformed the market in the one month to 27 February 2008, falling 11.09% as against the Sensex's 1.47% decline. It had also underperformed the market in the past three months, sliding 28.07% against the Sensex's 6.20% slide.

The small-cap hotel firm has an equity capital of Rs 9.24 crore. Face value per share is Rs 2.

At the current price of Rs 62.65, the scrip trades at a PE multiple of 49.33, based on Q3 December 2007 annualised EPS of Rs 1.27.

Textile accessory maker Arrow Webtex said on Wednesday, 27 February 2008 its subsidiary, Fasttrack Impex would make an announcement on 29 February 2008 for acquiring 20% of the capital of Advani Hotels & Resorts.

Meanwhile, shares of Arrow Webtex was down 2.26% to Rs 60.55

The net profit of Advani Hotels & Resorts fell 20.1% to Rs 1.47 crore on 16.4% rise in sales to Rs 13.38 crore in Q3 December 2007 over Q3 December 2006.

The company operates hotel and resort in Goa, India. The firm operates in two segments namely hotel and casino operation. The hotel offers banquet halls, restaurants, swimming pools, golf and health clubs, sports, amusement and meditation centers.

Varun Industries shines on new orders

Varun Industries soared 8.91% to Rs 96 at 11:09 IST on BSE after the company said on Wednesday, 27 February 2008 it has secured two contracts worth Rs 55 crore from Oil and Natural Gas Corporation for drilling rig for a period of three years.

The company made this announcement after trading hours on Wednesday, 27 February 2008.

Meanwhile, BSE Sensex was down 100.19 points or 0.56% to 17,725.80, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 1.20 lakh shares were traded in the counter. The scrip had an average daily volume of 4.18 lakh shares in the past one quarter.

The stock hit a high of Rs 100.90 and a low of Rs 90.20 so far during the day. The stock had a 52-week high of Rs 165 on 8 January 2008 and a 52-week low of Rs 75 on 13 February 2008.

The small-cap scrip had underperformed the market over the past one month till 27 February 2008, declining 17.42% compared to the Sensex’s decline of 1.47%. It had outperformed the market in the past one quarter, declining 0.62% compared to Sensex’s decline of 6.20%.

The company’s current equity is Rs 22.11 crore. Face value per share is Rs 10.

The current price of Rs 96 discounts its Q3 December 2007 annualized EPS of Rs 7.76, by a PE multiple of 12.37.

One of the two contracts is valued at Rs 50 crore. The other contract is valued at Rs 5 crore for operations and maintenance (O&M) services of a rig in Karaikal for a period of three years.

Varun Industries reported a net profit of Rs 4.29 crore on net sales of Rs 248.59 crore in Q3 December 2007. Figures of the previous corresponding year period were not available.

Mumbai-based Varun Industries is an exporter of stainless steel kitchenware, tableware, pet ware and other utility items. The company has its manufacturing plant and warehouse at Vasai, near Mumbai.

Sundram Fasteners slips after acquisition

Sundram Fasteners dropped 0.50% to Rs 39.45 at 10:41 IST on BSE after the company said it has acquired 100% capital of Sundram Fasteners (Zhejiang), China, from Sundram Fasteners Investments, a wholly owned subsidiary of the company.

The company made this announcement after trading hours on Wednesday, 27 February 2008.

Meanwhile, BSE Sensex was down 52.90 points or 0.30% to 17,773.09, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 3,987 shares were traded in the counter. The scrip had an average daily volume of 2.05 lakh shares in the past one quarter.

The stock hit a high of Rs 39.90 and a low of Rs 39 so far during the day. The stock had a 52-week high of Rs 73 on 14 May 2007 and a 52-week low of Rs 35.65 on 22 January 2008.

The small-cap scrip had underperformed the market over the past one month till 27 February 2008, declining 1.98% compared to the Sensex’s decline of 1.47%. It had also underperformed the market in the past one quarter, declining 19.90% compared to Sensex’s decline of 6.20%.

The company’s current equity is Rs 21.01 crore. Face value per share is Rs 1.

The current price of Rs 39.45 discounts its Q3 December 2007 annualized EPS of Rs 3.43, by a PE multiple of 11.50.

Sundram Fasteners (Zhejiang), China (SFZL) has now become a wholly owned subsidiary of Sundram Fasteners.

Sundram Fastener’s net profit declined 13.8% to Rs 18.04 crore on 2.4% fall in net sales to Rs 297.51 crore in Q3 December 2007 over Q3 December 2006.

Sundram Fasteners is engaged in manufacturing high tensile fasteners, cold forgings/extrusions including precision formed gears, powder metal parts, oil pumps/water pumps and engine parts, radiator caps, hot and warm forgings, auto components and iron powder.

Sun Pharma gains new drug approval in US

Sun Pharmaceutical Industries moved up 2.71% to Rs 1225 at 10:36 IST on BSE after the firm received approval from the US Food and Drug Administration for torsemide tablets in multiple strengths.

The company made the announcement before market hours on Thursday, 28 February 2008.

Meanwhile, the BSE Sensex was down 46.27 points, or 0.26%, to 17,779.72, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 6115 shares of the scrip were traded. The stock had an average daily volume of 25,926 shares on BSE in past one quarter.

The scrip had touched a high of Rs 1236 and a low of Rs 1190 so far during the day. The stock had hit a 52-week high of Rs 1265 on 24 December 2007 and a 52-week low of Rs 886 on 16 August 2007.

The scrip had outperformed the market in the one month to 27 February 2008, adding 12.61% as against the Sensex's 1.47% decline. It had also outperformed the market in the past three months, soaring 8.55% against the Sensex's 6.20% slide.

The mid-cap drug maker has an equity capital of Rs 100.74 crore. Face value per share is Rs 5.

At the current price of Rs 1225, the scrip trades at a PE multiple of 17.83, based on Q3 December 2007 annualised EPS of Rs 68.69.

The 5 mili gram (mg), 10 mg, 20 mg and 100 mg dosages for which it has received approval had annual sales of about $35 million, the company said in a statement.

The net profit of Sun Pharmaceuticals Industries rose 109.5% to Rs 345.93 crore on 75.9% rise in sales to Rs 733.91 crore in Q3 December 2007 over Q3 December 2006.

Sun Pharmaceuticals Industries’ activity is to formulate, manufacture and distribute pharmaceuticals.

Jindal Saw gains on good Q4 numbers

Jindal Saw rose 0.66% to Rs 910 at 10:14 IST on BSE, on reporting 854.4% surge in net profit to Rs 573.88 crore in Q4 December 2007 over Q4 December 2006.

The results were announced after market hours on Tuesday, 26 February 2008. The stock rose 1.69% to Rs 904 on Wednesday, 27 February 2008.

Meanwhile, BSE Sensex was down 14.25 points or 0.08% to 17,811.74, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 2,792 shares were traded in the counter. The scrip had an average daily volume of 67,394 shares in the past one quarter.

The stock hit a high of Rs 914.75 and a low of Rs 907 so far during the day. The stock had a 52-week high of Rs 1224.90 on 4 January 2008 and a 52-week low of Rs 447 on 5 March 2007.

The mid-cap scrip had outperformed the market over the past one month till 27 February 2008, declining 0.68% compared to the Sensex’s decline of 1.47%. It had also outperformed the market in the past one quarter, gaining 5.32% compared to Sensex’s decline of 6.20%.

The company’s current equity is Rs 52.12 crore. Face value per share is Rs 10. The current price of Rs 910 discounts its Q4 December 2007 annualized EPS of Rs 448.87, by a PE multiple of 2.03.

Jindal Saw’s net sales rose 35.1% to Rs 1611.69 crore in Q4 December 2007 over Q4 December 2006.

On 26 February 2008, the company proposed three-fold business initiatives in infrastructure, transportation and fabrication and firmed up plans to set up three distinct lines of businesses. With this objective in view, a company Jindal ITF has been incorporated which as a subsidiary of Jindal Saw. On 29 January 2008, Jindal Saw received letter of award from Cairn Energy India for supply of line pipes, tracer tube, insulation and bends for Barmer Salaya Pipe Line project.

On 3 January 2008, Jindal Saw received orders aggregating to $250 million for supply of spiral pipes/longitudinal submerged arc welded pipes and seamless pipes.

Jindal Saw manufactures and markets submerged arc welded (SAW) pipes. The company's products include large diameter submerged arc welded pipes and spiral pipes and bends which are used in the energy sector for transportation of oil and gas, carbon, alloy. Its plants are located at Maharashtra, Uttar Pradesh and Gujarat. The group operates in India and United States.

Alfa Laval surges on strong Q4 show

Alfa Laval India surged 4.11% to Rs 949 at 9:56 IST on BSE, on reporting 112.4% surge in net profit to Rs 23.49 crore in Q4 December 2007 over Q4 December 2006.

The company announced the results after trading hours on Wednesday, 27 February 2008.

Meanwhile, BSE Sensex was up 63.88 points or 0.36% to 17,889.87.

On BSE, 55 shares were traded in the counter. The scrip had an average daily volume of 1,777 shares in the past one quarter.

The stock hit a high of Rs 949 and a low of Rs 930 so far during the day. The stock had a 52-week high of Rs 1380 on 31 May 2007 and a 52-week low of Rs 750 on 22 January 2008.

The mid-cap scrip had outperformed the market over the past one month till 27 February 2008, gaining 2.04% compared to the Sensex’s decline of 1.47%. It had underperformed the market in the past one quarter, declining 9.27% compared to Sensex’s decline of 6.20%.

The company’s current equity is Rs 18.16 crore. Face value per share is Rs 10.

The current price of Rs 949 discounts its Q4 December 2007 annualized EPS of Rs 52.74, by a PE multiple of 17.99.

Alfa Laval India’s total income rose 24.4% to Rs 205.30 crore in Q4 December 2007 over Q4 December 2006.

The company is engaged in manufacturing and marketing oil separators and vacuum units. The group operates in three segments: process technology, equipment and others.

BUDGET EXPECTATIONS:

With general elections due in 2009, Union Budget 2008-09 to be presented on 29 February 2008 will be the last full-fledged budget of the Congress-led United Progressive Alliance government and it is therefore likely to be a populist budget. Thus, the Finance Minister (FM) is likely to provide higher allocations to several social initiatives like rural upliftment, employment, education, agricultural growth and public health.

Though populist measures will dominate the budget, FM is also expected to take steps to stimulate investment and consumption demand at a time when the economy is witnessing moderation from a solid growth last year. A reduction in personal income tax, if any, will result in increase in disposable incomes which in turn may boost demand for consumer goods.

Expectations are that the corporate income tax rate may be cut or the 10% surcharge on corporate tax may be abolished. The surcharge is 10% on a tax rate of 30%, making the

effective corporate tax rate 33%. Another possibility is that of a cut in dividend distribution tax from 15% to 12.5%.

Meanwhile, FM may raise the Securities Transaction Tax (STT) slightly. STT is currently at 0.125% on delivery trades. STT is 0.025% on non-delivery trades on sell transactions. STT is 0.017 % in futures & options segment on sell trasactions.

It is also expected that the FM would announce some relief packages for troubled export sensitive sectors like textiles, rubber, jewelry, leather and IT services. These sectors have been hit by rupee’s surge in the past one year.

Economic Survey - Report (in Brief)

Finance ministry tabled Economic Survey - a report card on the economy during this fiscal in parliament at about 12:00 IST, 28^th February 2008

Maintaining economic growth at about 9% a year will be a challenge due to inflation and infrastructure constraints, and raising the rate to double digits will be even harder, the Economic Survey for 2007-08 said. Agricultural sector growth is estimated to slow to 2.6% in the year ending March 2008, from 3.8% the year before, it said. Development of adequate infrastructure is a critical prerequisite for sustaining the economic growth momentum, the survey said.

It said containing inflation was a priority, because rising prices hurt the poor, and putting pressure on interest rates hit both savings and investment. The survey said Inflation should remain moderate in the coming months due to policy measures taken over the last year.

A surge in capital inflows, including foreign direct investment, would continue in the medium term although short-term inflows may moderate due to slightly slower growth, the survey said. Any reduction in excess capital flows from the high levels of 2007 may affect the equity markets in the short term but will make the task of monetary management easier, the survey said.

Finance Minister (FM) P Chidambaram today said that he was confident of achieving 11th Plan target of 9% growth.

Post Market Commentary - Feb 28 2008

Nifty was up 16.7 points or 0.32% at 5,285.1.

BSE Sensex ended down 1.51 points or 0.01% at 17,824.48

The market had recovered from lower level in early afternoon trade after the finance ministry tabled Economic Survey - a report card on the economy during this fiscal in partliament at about 12:00 IST, the recovery was short lived. Derivatives contracts for February 2008 series expired today, 28 February 2008.

National Alluminium Company (up 7.96% to Rs 482.70), Tata Communications (up 7.84% to Rs 525.25), Dr. Reddy’s Labooratories (up 5.66% to Rs 572.35), Sun Pharmaceutical Industries (up 4.46% to Rs 1,254.20) and Hindalco Industries (up 4.26% to Rs 204.30) were top five gainers from Nifty pack. These five scrips have a combined weightage of 3.3% in Nifty. Four of these five stocks are not a part of Sensex. Hindalco which is a Sensex stock has a 1.38% weightage in the barometer index.

India’s largest engineering & construction firm by revenue Larsen & Toubro rose 0.28% to Rs 3,641.20. It recovered from its lows of Rs 3,600.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries declined 1.97% at Rs 2,536.70. The company said on Tuesday, 26 January 2008 it had discovered more gas in an exploration block off India's east coast.

Realty stocks fell. India’s largest real estate player by market cap DLF declined 2.37% to Rs 805.35. DLF will reportedly invest about $5 billion or Rs 20,000 crore to build and operate more than 25,000 hotel rooms in the next 7-8 years. The New Delhi-based real estate major is also in talks to set up nine super luxury hotels across India, the reports added. Indiabulls Real Estate (down 1.02% to Rs 647.30) and Unitech (down 1.56% to Rs 376.45) edged lower.

Auto stocks rose. Hero Honda Motors (up 3.73% to Rs 747.30), Mahindra & Mahindra (up 3.26% to Rs 680.15), Bajaj Auto (up 3.61% to Rs 2,255) and Maruti Suzuki India (up 0.34% to Rs 834.95) edged higher. India's largest truck maker by sales Tata Motors rose 0.4% to Rs 710.25.

Metal stocks rose. Sterlite Industries (up 3.93% to Rs 853.70), Steel Authority of India (up 3.88% to Rs 252.80) and Tata Steel (up 1.56% to Rs 823.70) edged higher.

Healthcare stocks edged higher. Cipla rose 2.23% to Rs 206.05 and Ranbaxy Laboratories rose 1.88% at Rs 444.55.

NTPC, India's biggest power generation firm by revenue, rose 0.79% to Rs 203.95. NTPC has signed a loan agreement for 68.56 million euros with Nordic Investment Bank to part fund its capital expenditure. The 12-year loan carries a floating interest rate linked to EURIBOR, and is without a sovereign guarantee, the company said after market hours on Wednesday, 27 February 2008.

HDFC (up 3.39% to Rs 2,775.35) and Bharat Heavy Electricals (up 2.68% to Rs 2,323.60) edged higher from the Sensex pack.

Ambuja Cements (down 1.38% to Rs 121.20) and Reliance Energy (down 1.88% to Rs 1,600.70) edged lower from the Sensex pack.

Tulsi Extrusions clocked highest volume of 1.27 crore shares on BSE. Reliance Natural Resources (1.09 crore shares), Nagarjuna Fertilisers and Chemicals (1.07 crore shares), Ispat Industries (80.83 lakh shares) and Centurion Bank of Punjab (76.62 lakh shares) were other vlume toppers in that order.

OnMobile Global clocked highest turnover of Rs 271.36 crore on BSE. Reliance Capital (Rs 186.13 crore), Reliance Industries (Rs 149.63 crore), Reliance Energy (Rs 147.68 crore) and Reliance Natural Resources (Rs 146.13 crore) were other turnover toppers in that order.

As per provisional data on NSE.Foreign institutional investoes (FIIs) sold shares worth Rs 809.1 crore today, 28 February 2008 . Domestic funds bought shares worth Rs 732.38 crore.

IDBI Ltd, BUY

IDBI Ltd, BUY

CMP: Rs 117 Target Price: Rs 161

Valuation
IDBI is on course to register a strong operational performance led by geographic expansion and improving profitability. We expect a re-rating in the bank’s valuation, as it steps up its core business and also starts reaping benefits from its equity portfolio. At the CMP of Rs 117, the stock is attractively trading at 1.2x FY2009E Adj. Book Value of Rs 94.1 and 1.1x FY2010E Adj. Book Value of Rs 107.5. We initiate coverage on the stock with a BUY rating and a 12-month target price of Rs 161.

FINQST,February 27, 2008

Anantraj Industries-Can't Kamal Nath Declare India As A SEZ?

Anantraj Industries is buidling up a SEZ in Haryana at Rai, this adjoins the Unitech and Reliance SEZ's, So shouldn't the GOI help land grab by Notifying the Entire Nation as a SEZ?-After all, then your and my house too will get classified as a SEZ?

What a farce in the name of land grab.

Anant Raj Industries Ltd has informed BSE that the Board of approvals, Ministry of Commerce, Government of India has granted approval to the Company's proposal for development of an IT Special Economic Zone (SEZ) of 25 acres at Rai, Haryana.

maverick

BUDGET & MARKETS-2

The next major trigger for the market is the Union Budget 2008-09. With general elections due in 2009, Union Budget 2008-09 to be presented on 29 February 2008 will be the last full-fledged budget of the Congress-led United Progressive Alliance government and it is therefore likely to be a populist budget. Thus, the Finance Minister (FM) is likely to provide higher allocations to several social initiatives like rural upliftment, employment, education, agricultural growth and public health.

Though populist measures will dominate the budget, FM is also expected to take steps to stimulate investment and consumption demand at a time when the economy is witnessing moderation from a solid growth last year. A reduction in personal income tax, if any, will result in increase in disposable incomes which in turn may boost demand for consumer goods.

Expectations are that the corporate income tax rate may be cut or the 10% surcharge on corporate tax may be abolished. The surcharge is 10% on a tax rate of 30%, making the effective corporate tax rate 33%. Another possibility is that of a cut in dividend distribution tax from 15% to 12.5%.

Meanwhile, FM may raise the Securities Transaction Tax (STT) slightly. STT is currently at 0.125% on delivery trades. STT is 0.025% on non-delivery trades on sell transactions. STT is 0.017 % in futures & options segment on sell trasactions.

It is also expected that the FM would announce some relief packages for troubled export sensitive sectors like textiles, rubber, jewelry, leather and IT services. These sectors have been hit by rupee’s surge in the past one year.

Pre-budget rally in capital goods stocks

Six stocks from the capital goods sector rose between 3.11% to 4.34% on expectation that the government will lay thrust on infrastructure sector in Union Budget 2008-09 to be announced on Friday, 29 February 2008.

The BSE Capital Goods index was up 498 points or 3.09% at 16,622.36.

Top gainers from the Capital Goods index were: Siemens (up 4.34% to Rs 1,679.80), Crompton & Greaves (up 4.11% to 324.60), Larsen & Toubro (up 3.83% to Rs 3,653.15), Bharat Heavy Electricals (up 3.55% to 2,258) and Punj Lloyd (up 3.11% to Rs 396).

Some of the key expectation for capital goods sector from the Union Budget 2008-09 include, reduction in exise duty on power equipments. Currently the duty is 16%.

Reduction in custom duty on project imports is also expected so as to provide a boost to infrastructure investments. Currently the maximum duty is at 10%.

The government may also likely to provide subsidy on shipbuilding. The previous subsidy of 30% had expired on August 2007.

Tractor makers in top gear as budget may focus on agriculture

Shares of the four tractor makers rose between 1.69% to 12.66% on hopes that the Union Budget 2008-09 may include provisions for increased spending in agricultural sector.

Punjab Tractors (up 12.66% to Rs 277.15), HMT (up 5% to Rs 96.25), Mahindra & Mahindra (up 4.90% to Rs 661) and Escorts (up 1.69% to Rs 108), edged higher.

As per reports, Union Budget 2008-09 to be announced on Friday, 29 February 2008, may include measures to help heavily indebted farmers.

Rise in agricultural spending is positive for tractor manufacturing firms, as it would lead to additional demand for farm products, including tractors.

STOCKS BENIFITTED BY RAILWAY BUDGET

Select stocks rise as rail budget signals new initiatives

Stocks of the companies that cater to Indian railways gained after Indian Railways Minister Lalu Prased Yadav on 26 February 2008 announced some new initiative towards easing infrastructure bottlenecks in the Railways.

Train wagon manufacturing companies Texmaco (up 5% to Rs 1712) and BEML (up 2.70% to Rs 1180), rose after the Railway Budget laid down plans to procure a record 22,000 train locomotives for the coming year. These two companies derive sizable portion of their revenues from from the manufacture of of wagons for the Railways.

Kalindee Rail Nirman (up 1.11% to Rs 475), rose on expectations that the firm may benefit significantly from the setting up of dedicated freight corridors by the Railways. This may translate into topline growth for the company from the next financial year. Kalindee Rail Nirman is a frontrunner in railway related infrastructure works such as construction of new line and gauge conversion.

Kernex Microsystems India rose 5% to Rs 230.30 on expectations that they may benefit from the Government’s focus to strengthen railway safety through automatic devices such as anti-collision device (ACD).

Nitin Fire Protection Industries (up 5.64% to Rs 509.05) rose on Railways' proposal to increase anti-fire security measures inside trains. Nitin Fire Protection manufactures fire protection equipments.

Bartronics India (up 5.18% to Rs 235.50) rose on Railways’ proposal to extend the usage of smart cards from Western Railways to other rail divisions. Bartronics is a leading provider of smart card-based technology.

MIC Electronics (up 4.72% to Rs 820) rose on Railways’ plan to introduce estimated time of arrival (ETA) display on the coaches of long-run trains. MIC Electronics make light-emitting diode (LED) display systems.

Zicom Electronic Security Systems (up 5% to Rs 170.20) rose on Railways' plan to install close circuit television at all important stations. Zicom is a market leader in the electronic security equipment space.

Mundra Port and Special Economic Zone (up 3.11% to Rs 758.50) rose on Railways' proposal to float special purpose vehicle for rail links to Mundra, Kandla and Krishnapatnam ports.

HDIL in demand

Housing Development & Infrastructure gained 2% to Rs 853.10 at 15:30 IST on BSE, on reports international hedge fund D E Shaw Composite Investments (Mauritius) has invested $250 million in Mack Star Marketing - a group company..

Meanwhile, BSE Sensex was down 33.03 points or 0.19% to 17,773.16.

On BSE, 3.26 lakh shares were traded in the counter. The scrip had an average daily volume of 4.24 lakh shares in the past one quarter.

The stock hit a high of Rs 878 and a low of Rs 845 so far during the day. The stock had a 52-week high of Rs 1432 on 10 January 2008 and a 52-week low of Rs 473.50 on 24 June 2007.

The mid-cap scrip had underperformed the market over the past one month till 26 February 2008, declining 16.56% compared to the Sensex’s decline of 1.91%. It had outperformed the market in the past one quarter, gaining 10.31% compared to Sensex’s decline of 5.98%.

The company’s current equity is Rs 214.27 crore. Face value per share is Rs 10.

The current price of Rs 853.10 discounts its Q3 December 2007 annualized EPS of Rs 50.45, by a PE multiple of 16.91.

Mack Star Marketing is developing a commercial complex of about 54,000 square meters in Andheri, Mumbai. The development rights were granted by Housing Development & Infrastructure (HDIL).

Earlier this year, HDIL bagged a slum rehabilitation project from the Maharashtra government aimed at rehabilitating slums in or around Mumbai airport spread over an area of 276 acres.

HDIL reported a net profit of Rs 270.23 crore on net sales of Rs 496.62 crore in Q3 December 2007. Figures of the corresponding previous year period were not available.

The Wadhawan group realty firm HDIL has significant operations in the Mumbai metropolitan region.

Shasun Chemicals soars on deal with US firm

Shasun Chemicals & Drugs soared 12.04% to Rs 63.30 at 14:50 IST on BSE after it signed a non-exclusive deal with Merck & Co to allow the US firm the use of its proprietary technology to make bulk drugs..

The company made this announcement during market hours today, 27 February 2008.

Meanwhile, BSE Sensex was up 128.58 points or 0.72% to 17,934.77, on positive cues from Asian markets. Asian stocks surged today after weak US economic data and comments from a Federal Reserve official signaled that US interest rates will continue to head lower. Fed Vice Chairman Donald Kohn said on Tuesday, 26 February 2008, that a weak US economy was a bigger worry than higher inflation risks.

On BSE, 5.41 lakh shares were traded in the counter. The scrip had an average daily volume of 1.18 lakh shares in the past one quarter.

The stock hit a high of Rs 67.40 and a low of Rs 56.70 so far during the day. The stock had a 52-week high of Rs 157 on 22 June 2007 and a 52-week low of Rs 49.35 on 22 January 2008.

The small-cap scrip had underperformed the market over the past one month till 26 February 2008, declining 2.16% compared to the Sensex’s decline of 1.91%. It had also underperformed the market in the past one quarter, declining 16.85% compared to Sensex’s decline of 5.98%.

The company’s current equity is Rs 9.65 crore. Face value per share is Rs 2.

The current price of Rs 63.30 discounts its Q3 December 2007 annualized EPS of Rs 4.86, by a PE multiple of 13.03.

New Jersey headquartered Merck & Co., Inc. is a global research-driven pharmaceutical company dedicated to putting patients first. Merck discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs.

Shasun Chemicals & Drugs’ net profit declined 41.5% to Rs 5.86 crore on 25.5% growth in net sales in Q3 December 2007 over Q3 December 2006.

The company manufactures and supplies active pharmaceutical ingredients, intermediaries and formulations

Gandhi Special Tubes >record date for stock split

Gandhi Special Tubes declined 4.13% to Rs 195 at 14:05 IST on BSE after the company fixed record date for a 2-for-1 stock split.

Meanwhile, BSE Sensex was up 200.67 points or 1.13% to 18,006.86, on positive cues from the global markets. Asian stocks surged today after weak US economic data and comments from a Federal Reserve official signaled that US interest rates will continue to head lower. Fed Vice Chairman Donald Kohn said on Tuesday, 26 February 2008, that a weak US economy was a bigger worry than higher inflation risks.

On BSE, 790 shares were traded in the counter. The scrip had an average daily volume of 4,838 shares in the past one quarter.

The stock hit a high of Rs 203 and a low of Rs 195 so far during the day. The stock had a 52-week high of Rs 270 on 31 December 2007 and a 52-week low of Rs 121.15 on 16 June 2007.

The small-cap scrip had underperformed the market over the past one month till 26 February 2008, declining 7.76% compared to the Sensex’s decline of 1.91%. It had outperformed the market in the past one quarter, gaining 19.65% compared to Sensex’s decline of 5.98%.

The company’s current equity is Rs 7.35 crore. Face value per share is Rs 10.

The current price of Rs 195 discounts its Q3 December 2007 annualized EPS of Rs 29.82, by a PE multiple of 6.54.

The company has fixed 26 March 2008 as the record date for a 2-for-1 stock split. The company made the announcement of the record date during market hours today, 27 February 2008.

Gandhi Special Tubes’ net profit rose 97.8% to Rs 5.48 crore on 50.3% growth in net sales to Rs 21.61 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and marketing seamless and welded steel tubes. The company operates in three segments namely steel tubes, wind power and others.

Smooth sailing for GE Shipping

Great Eastern Shipping Company surged 3.37% to Rs 438.50 at 13:00 IST on BSE, after the company said it has contracted to sell two double hull medium range product tankers, Jag Panna and Jag Payal.

The company made this announcement during market hours today, 27 February 2008.

Meanwhile, BSE Sensex was up 228.80 points or 1.28% to 18,034.99, on positive cues from the global markets. Asian stocks surged today after weak US economic data and comments from a Federal Reserve official signaled that US interest rates will continue to head lower. Fed Vice Chairman Donald Kohn said on Tuesday, 26 February 2008, that a weak US economy was a bigger worry than higher inflation risks.

On BSE, 1.04 lakh shares were traded in the counter. The scrip had an average daily volume of 1.15 lakh shares in the past one quarter.

The stock hit a high of Rs 440 and a low of Rs 425 so far during the day. The stock had a 52-week high of Rs 572 on 31 December 2007 and a 52-week low of Rs 185 on 19 March 2007.

The mid-cap scrip had outperformed the market over the past one month till 26 February 2008, gaining 4.42% compared to the Sensex’s decline of 1.91%. It had underperformed the market in the past one quarter, declining 13.06% compared to Sensex’s decline of 5.98%.

The company’s current equity is Rs 152.27 crore. Face value per share is Rs 10.

The current price of Rs 438.50 discounts its Q3 December 2007 annualized EPS of Rs 77.12, by a PE multiple of 5.69.

The company’s current fleet stands at 47 vessels, comprising 34 tankers and 13 dry bulk carriers with an average age of 10.7 years aggregating 3.14 million deadweight tonnage (DWT).

In January 2008, GE Shipping Company signed a contract to sell Jag Akshay, a Panamax dry bulk carrier.

On 18 December 2007, the company signed a contract with SPP Shipbuilding Co, Korea for acquiring two new Kamsarmax dry bulk carriers.

On 6 November 2007, the company’s subsidiary signed a contract for 2 multi purpose platform supply and support vessels.

Great Eastern Shipping Company’s net profit rose 77% to Rs 293.57 crore on 23.3% growth in net sales to Rs 604.29 crore in Q3 December 2007 over Q3 December 2006.

The company has two main businesses, shipping and offshore. The shipping business is involved in transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business services to the oil companies in carrying out offshore exploration and production activities, through its wholly owned subsidiary Greatship (India).

Large order win powers BGR Energy

BGR Energy rose 2.84% to Rs 586.90 at 12:31 IST on BSE, on bagging an order worth Rs 793 crore from Andhra Pradesh Power Generation Corporation for supply of power generation equipment.

The company made this announcement during market hours today, 27 February 2008.

Meanwhile, BSE Sensex was up 227.70 points or 1.28% to 18,033.89, on positive cues from the global markets. Asian stocks surged today after weak US economic data and comments from a Federal Reserve official signaled that US interest rates will continue to head lower. Fed Vice Chairman Donald Kohn said on Tuesday, 26 February 2008, that a weak US economy was a bigger worry than higher inflation risks.

On BSE, 96,411 shares were traded in the counter. The scrip had an average daily volume of 3.26 lakh shares in the past one quarter.

The stock hit a high of Rs 603.80 and a low of Rs 572 so far during the day. The stock had a 52-week high of Rs 988 on 4 January 2008 and a 52-week low of Rs 525 on 23 January 2008.

The mid-cap scrip had underperformed the market over the past one month till 26 February 2008, declining 7.53% compared to the Sensex’s decline of 1.91%.

The company’s current equity is Rs 72 crore. Face value per share is Rs 10.

The current price of Rs 586.90 discounts its Q3 December 2007 annualized EPS of Rs 12.12, by a PE multiple of 48.42.

The contract is to be executed within a period of 26 months.

BGR Energy reported a net profit of Rs 21.82 crore on net sales of Rs 382.76 crore in Q3 December 2007.

BGR Energy Systems is a supplier of systems and equipment for the power, oil and gas, petrochemical and process industries.

Ispat Industries preferred on preferential issue to promoters

Ispat Industries jumped 3.73% to Rs 44.55 at 12:16 IST on BSE after the company's board approved issuing preferential warrants to promoters.

The company made the announcement after market hours on Tuesday, 26 February 2008

Meanwhile, the BSE Sensex was up 233.41 points, or 1.31%, to 18,039.60, tracking advances in Asian markets after weak US economic data and comments from a Federal Reserve official signalled that US interest rates will continue to head lower.

On BSE, 62.30 lakh shares of the scrip were traded. The stock had an average daily volume of 2.07 crore shares shares on BSE in past one quarter.

The scrip had touched a high of Rs 44.90 and a low of Rs 43.50 so far during the day. The stock had hit a 52-week high of Rs 87.40 on 20 December 2007 and a 52-week low of Rs 12.60 on 8 March 2007.

The scrip had underperformed the market in the one month to 26 February 2008, falling 5.08% as against the Sensex's 1.91% decline. It had also underperformed the market in the past three months, falling 2.16% against the Sensex's 5.98% slide.

The mid-cap steel maker has an equity capital of Rs 1222.44 crore. Face value per share is Rs 10.

The company will hold an extraordinary general meeting on 29 March 2008 for obtaining shareholders' approval for the proposed issue of preferential warrants to eligible promoters.

Ispat Industries reported net loss of Rs 36 crore in Q3 December 2007 as against net profit of Rs 17.52 crore in Q3 December 2006. Sales rose 18.5% to Rs 2166.23 crore in Q3 December 2007 over Q3 December 2006.

Ispat Industries, promoted by the Mittals group, is into manufacture of all types of galvanized plain/corrugated steel sheets/strips, coils and sponge iron.

"Allcargo Global Logistics" >ties-up with "Concor"

Concor tie-up lifts Allcargo Global Logistics

Allcargo Global Logistics gained 1.57% to Rs 813.80 at 11:51 IST on BSE, after the company said it has entered into a joint venture agreement with Container Corporation of India to set up a container freight station and inland container depot in UP.

The company made this announcement after market hours on Tuesday, 26 February 2008.

Meanwhile, BSE Sensex was up 288.83 points or 1.62% to 18,095.02, on positive cues from the global markets. Asian stocks surged today after weak US economic data and comments from a Federal Reserve official signaled that US interest rates will continue to head lower. Fed Vice Chairman Donald Kohn said on Tuesday, 26 February 2008, that a weak US economy was a bigger worry than higher inflation risks.

On BSE, 1,056 shares were traded in the counter. The scrip had an average daily volume of 33,089 shares in the past one quarter.

The stock hit a high of Rs 814 and a low of Rs 805 so far during the day. The stock had a 52-week high of Rs 1145 on 27 February 2007 and a 52-week low of Rs 609.80 on 22 January 2008.

The mid-cap scrip had outperformed the market over the past one month till 26 February 2008, gaining 0.93% compared to the Sensex’s decline of 1.91%. It had underperformed the market in the past one quarter, declining 12.20% compared to Sensex’s decline of 5.98%.

The company’s current equity is Rs 20.26 crore. Face value per share is Rs 10.

The current price of Rs 813.80 discounts its Q4 December 2007 annualized EPS of Rs 20.32, by a PE multiple of 34.90.

The joint venture is expected to commence operations by January 2009.

Container Corporation of India (Concor), a central government public sector undertaking under Ministry of Railways is primarily engaged in container rail transportation business, inland container depot (ICD) operations, warehousing and road transportation. Concor also provides transit warehousing for Exim (export and import) cargo, bonded warehousing and provides air cargo facilities.

Allcargo provides logistics service in India. Its present operations are in five key areas of the logistics business: multi-modal transport operations, container freight stations, project cargo handling, airfreight and transport logistics.

Allcargo Global Logistics’ net profit declined 24.9% to Rs 10.29 crore on 0.8% growth in net sales to Rs 85.85 crore in Q4 December 2007 over Q3 December 2006.

Moser Baer India in demand

Moser Baer India moved up 4.23% to Rs 179.85 at 11:41 IST on BSE on reports that Orange Business Services has finalised a joint venture partnership with the company to foray into long distant telephony.

Meanwhile, the BSE Sensex was up 281.93 points, or 1.58%, to 18,088.12, tracking advances in Asian markets after weak US economic data and comments from a Federal Reserve official signalled that US interest rates will continue to head lower.

On BSE, 42,948 shares of the scrip were traded. The stock had an average daily volume of 1.32 lakh shares on BSE in past one quarter.

The scrip had touched a high of Rs 180 and a low of Rs 174.80 so far during the day. The stock had hit a 52-week high of Rs 344.80 on 3 January 2008 and a 52-week low of Rs 164 on 13 February 2008.

The scrip had underperformed the market in the one month to 26 February 2008, falling 23.31% as against the Sensex's 1.91% decline. It had also underperformed the market in the past three months, skidding 31.39% against the Sensex's 5.98% slide.

The mid-cap storage devices manufacturer has an equity capital of Rs 168.23 crore. Face value per share is Rs 10.

Moser Baer is reportedly awaiting clearance from the Department of Telecom (DoT) for obtaining the licence. The company is not expected to foray into the retail long distance telephony segment, reports added.

France Telecom-owned Orange Business Services has been offering enterprise communication solutions to large multinationals in India. However, it has now applied for a licence after the Government made it mandatory for companies to obtain a national long distance licence for offering IP-based services such as virtual private network, the reports suggested.

Moser Baer India reported a net loss of Rs 20.45 crore in Q3 December 2007 as compared to net profit of Rs 37.62 crore in Q3 December 2006. Net sales rose 2% to Rs 511.66 crore in Q3 December 2007 over Q3 December 2006.

The company manufactures storage media for data applications and audio/video applications. It is India's second largest manufacturer of IT & entertainment peripherals in terms of sales.

Kernex Microsystems speeds up

Kernex Microsystems India was locked at 5% upper limit of Rs 230.30 at 11:12 IST on BSE, after the company said its anti-collision device project will be extended to cover entire Indian Railway network in a phased manner and in the next two years.

The company made this announcement during market hours today, 27 February 2008.

Meanwhile, BSE Sensex was up 309.09 points or 1.74% to 18,115.28, on positive cues from the global markets. Asian stocks surged today after weak US economic data and comments from a Federal Reserve official signaled that US interest rates will continue to head lower. Fed Vice Chairman Donald Kohn said on Tuesday, 26 February 2008, that a weak US economy was a bigger worry than higher inflation risks.

On BSE, 5,541 shares were traded in the counter. The scrip had an average daily volume of 16,065 shares in the past one quarter.

The stock hit a high of Rs 230.30 and a low of Rs 230.30 so far during the day. The stock had a 52-week high of Rs 339.91 on 7 September 2007 and a 52-week low of Rs 111.82 on 3 April 2007.

The small-cap scrip had outperformed the market over the past one month till 26 February 2008, gaining 13.80% compared to the Sensex’s decline of 1.91%. It had underperformed the market in the past one quarter, declining 15.11% compared to Sensex’s decline of 5.98%.

The company’s current equity is Rs 12.50 crore. Face value per share is Rs 10.

The current price of Rs 230.30 discounts its Q3 December 2007 annualized EPS of Rs 4.48, by a PE multiple of 51.41.

Railway Minister Lalu Prasad announced in parliament on 26 February 2008 while presenting the railway budget that, the anti-collision device (ACD) project will be extended to cover entire Indian Railway network in a phased manner over next two years. ACD system will be installed and commissioned in southern, south central and southwestern railways.

Kernex Microsystems India’s net profit rose 6.06% to Rs 1.40 crore on 17.33% growth in net sale to Rs 5.89 crore in Q3 December 2007 over Q2 September 2007.

Kernex Microsystems is engaged in the business of manufacturing, installing and maintaining of anti collision systems as well as developing certain railway safety and signal systems.