Gold may hit Rs 15k ahead of Diwali

1 Oct, 2008, 0600 hrs IST, ET Bureau
MUMBAI: Gold, it seems, would be the only silver lining to the dark cloud of the global financial crisis. Most investors are flocking to the asset, with equities, currency markets and even commodities in doldrums.

This would mean a more expensive yellow metal for Indian consumers this festival season. The weaker rupee, would only add to the expense. Analysts expect that gold could touch historical levels of Rs 15,000 for 10 gm ahead of Diwali.

“Outlook for gold price is certainly bullish owing to several factors that include safe-haven buying in the period of uncertainty, seasonal demand in Asian markets and increased buying by Gold ETF across the globe. Bullion prices could witness dramatic incentives in coming weeks and possibly breach their previous highs,” said Debjyoti Chatterjee of MAPE Admisi Commodity Research.

Besides, the rupee has depreciated by over 17% this year, which would make gold more expensive for the Indian consumer. Krishna Nathani MD of Chennai-based India Bullion Investor Services believes that gold could touch $950-980 per ounce levels in the next couple of weeks. “Gold has been extremely volatile. On Monday, it ranged between $860 to $925 levels,” he said.

He estimates that if gold crosses $950, given the rupee weakness, it would be well above Rs 15,000 per 10 gm. That would mean, gold would be trading at record levels in India even if it doesn’t touch the March 2008 record levels in the international market.
Gold price had touched levels near Rs 13,700 in July last. It closed at Rs 13,410 per 10 gm in Mumbai. With the festival of Navaratri having begun, retail sales are expected to pick up. Ahead of Diwali which falls on October 28, traders are not sure how consumers would react to the high price. Unless the price falls retail sales are expected to be dim.

via: E.T

Global crisis will impact India: PM

Press Trust Of India /Marseilles October 01, 2008, 0:16 IST

Hinting that India cannot be untouched by the financial turmoil in the US, Prime Minister Manmohan Singh said the nation’s capacity to finance development would be affected and exports compromised if major economies went into recession.

In an interview to leading French daily Le Figaro, Singh, who is on a two-day visit to France, said he wanted India and China to be part of solution-finding exercise to the global financial turmoil.

“We live in an interdependent world and the fate of all countries is related to the international financial system. Our value markets are opened to the world and, if they are affected, this will affect our capacity to finance our development,” he said.

“The proposal of President Nicolas Sarkozy (for a summit to examine the consequences of the financial crisis) is fundamental,” Singh said adding India was a potentially significant player but not a decisive actor.

20 Microns to list on Oct 6

Shares of 20 Microns Ltd will list on the exchanges on Monday, October 6, 2008.
The public issue of 20 Microns was open between Sep 4 and Sep 11. The IPO was for 43,50,632 equity shares of Rs 10 each in the price band Rs 50-55 per share. The company had fixed the issue price at the upper band.

The company is a pioneer and leader in micronised minerals and trend setter in the market for usage of ultrafine minerals for the paints and plastic industries.

Kingfisher Airlines (Deccan Aviation ) opting private equity investment

Kingfisher Airlines (CMP=Rs 59 ) reports private equity fund TPG Capital is among several suitors lined up to invest over $400 million for a substantial stake in the company.
Deccan Aviation has changed its name to Kingfisher Airlines following a reverse merger of Kingfisher Airlines with Deccan Aviation.

The stock had a 52-week high of Rs 335 on 19 December 2007 and a 52-week low of Rs 52.25 on 29 September 2008.
The mid-cap air carrier has an equity capital of Rs 265.91 crore. Face value per share is Rs 10.
According to reports, TPG has been in talks with Kingfisher for a few months now, and there is no certainty that a deal would happen. Kingfisher Airlines, following its reverse merger with Deccan Aviation, is looking at a valuation of over $1 billion in a market ravaged by the global credit crisis, the reports added.
Kingfisher Airlines reported a net loss of Rs 199.65 crore in Q3 March 2008 as against a net loss of Rs 213.17 crore in Q3 March 2007. Sales rose 25.8% to Rs 557.61 in Q3 March 2008 over Q3 March 2007.
The company's board at a meeting held on 29 September 2008 decided that it will present one single financial statement to the shareholders commencing 1 April to 31 March every year in line with the uniform financial year of other companies in the UB Group. Hence, the company's accounting period for the financial year 2007-2008 will be for a period of nine months i.e. from 1 July 2007 to 31 March 2008 instead of a 12 month period i.e. 1 July 2007 to 30 June 2008 and that, the subsequent financial years shall be from 1 April to 31 March.
Kingfisher Airlines provides commercial passenger airline and a private helicopter and airplane chartering services in India.

Tube Investments stake sale in its joint venture company

Tube Investments of India (CMP=Rs 37.65 ) has sold 26% stake in its joint venture company BorgWarner Morse Teo Murugappa for Rs 20.40 crore.

The stock has a 52-week high of Rs 97.80 on 2 January 2008. The stock hit a low of Rs 33.50 so far during the day, which is a 52-week low.

The company’s current equity is Rs 36.95 crore. Face value per share is Rs 2.
The current price of Rs 37.65 discounts Q1 June 2008 annualized EPS of Rs 10.46, a PE multiple of 3.60.
Tube Investments of India (TII)’s net profit surged 242.7% to Rs 48.29 crore on 24.2% increase in net sales to Rs 538.16 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing cycles, steel tubes, steel strips and metal-formed products. The group provides general insurance services. The group operates in five segments, namely, engineering, cycle components, metal forming, insurance and other. The group operates in India, North America, Europe and other countries.

SCI setting 31 October 2008 as record date for 1:2 bonus issue.

Shipping Corporation of India (CMP=149) fixed 31 October 2008 as record date for 1:2 bonus issue.

The stock hit a high of Rs 149 and 148 so far during the day. The stock has a 52-week high of Rs 332 on 3 January 2008 and a 52-week low of Rs 132 on 29 September 2008.
The company’s current equity is Rs 282.30 crore. Face value per share is Rs 10.
The current price of Rs 149 discounts Q1 June 2008 annualized EPS of Rs 39.62, a PE multiple of 3.76.

Shipping Corporation of India (SCI)’s net profit rose 35.6% to Rs 279.60 crore on 19.9% increase in net sales to Rs 1061.91 crore in Q1 June 2008 over Q1 June 2007.
SCI, a state-run shipping company, operates and manages a fleet of line vessels, tankers, and bulk carriers, passenger vessels and off shore vessels.
The Government of India holds 80.12% stake in the firm.

Sensex bounces back from 2-year low. Tuesday, September 30, 2008

Sensex jumped 264.58 points or 2.1% to 12,860.43.

Nifty was up 71.15 points or 1.85% to 3,921.20.

The BSE Sensex is down 7,426.56 points or 36.6% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 8,346.34 points or 39.35% below its all-time high of 21,206.77 struck on 10 January 2008.

Bailout bill in danger of being defeated in House

29 Sep, 2008, 2337 hrs IST, AGENCIES
WASHINGTON: Massive legislation to bail out the stressed financial industry is hanging near defeat on the floor of the House.

More than enough members of the House had cast votes to defeat the Bush administration-pushed bill, and the vote was being held open, apparently as efforts were under way to persuade people to change their vote.

On Wall Street, stocks plummeted as investors followed the developments in Congress.

Via:E.T

Markets feel credit crunch; Sensex support 12400

MUMBAI: The worst credit crisis facing the world’s central banks saw markets take a beating on Monday, even as the US readied a $700 billion bailout plan.

Indian stocks were no different, as the benchmark Sensex and Nifty breached key supports.
Players battered the markets on fears there will be more corporate failures and the US bailout plan may fail to resolve the credit crisis.

National Stock Exchange's 50-share Nifty closed the day 3.39 per cent lower at 3850.05 and Bombay Stock Exchange’s Sensex fell 3.87 per cent to 12595.75. Intraday, Nifty touched a low of 3777.30 and Sensex took support at 12402.84.

Said Ashok Jainani, Vice-President (Research & Market Strategy) Khandwala Securities, “The past week's trend continues as the two major events -- modified Wall Street rescue plan and Indo-US nuke deal -- still remain on the table and the crisis situation has yet not been resolved. Market sentiments are mostly being driven by news and short-term technical charts at present.”
At current levels, Sensex could find a lower support near 12,400 level and Nifty near 3,750. Many of the frontline stocks look attractive for a medium-term perspective, on hopes that they would report good Q2 results, Jainani said.

“Unwinding of FII liquidity, which had caused Sensex underperforming, and multiple contraction might ebb, with new initiatives being considered by SEBI next week,” he added. Thus, investors could buy front-line stocks at their lower levels.

“Market is reacting on the weak global sentiments that have spread across from US to European and Asian markets, weighed by liquidity crisis. Real investors are scared of weak fundamentals ahead and fear that efforts being made by the major global economies are not enough,” said DD Sharma, head retail research, Anandrathi Securities Ltd.

Sharma believes that in India, most of the potential institutional investors are keeping away due to global uncertainty, even though the fundamentals are comfortable and it is the right time to enter the market.

Mirae Asset Global Investment Management says, “The present downtrend is due to big uncertainty on liquidity side and de-leveraging by institutional investors, domestic as well as foreign, even though the fundamentals are still positive of the country.”

Both, Anandrathi and Mirae expect Nifty to find support between 3,750 and 3,800 and after that a bounce back is possible.

Nifty had hit below the 3,800 level for the third time and then recovered this year.

via:E.T

Another bearish day: September 29, 2008,

Sensex sheds 4%, ICICI drags

The Sensex opened almost flat at 13,110 - up eight points, touched a high of 13,114, and soon slipped into the negative zone owing to weak global cues.

banking, realty and technology stocks bore the brunt of the selling, as the index tumbled to a new calender year low of 12,403 - down 699 points from the previous close.

However, some buying towards the end helped the Sensex recoup some of its losses, and finally end at 12,596 - down 506 (3.9%) points. In the process, the index has now shed 8% (1,097 points) in the last three trading sessions.

INDEX SHAKERS...

ICICI Bank and Jaiprakash Associates slumped around 12% each to Rs 493 and Rs 107, respectively.

Satyam plunged over 9% to Rs 293, and TCS tumbled 8.4% to Rs 620.

Tata Power shed 7% at Rs 918. Mahindra & Mahindra and Reliance Infrastructure slipped over 6.5% each to Rs 495 and Rs 794, respectively.

Reliance Communications and Ranbaxy declined over 6% each to Rs 326 and Rs 256, respectively.

DLF and Larsen & Toubro dropped around 5% each to Rs 351 and Rs 2,345, respectively.

Tata Motors and NTPC slipped over 4.5% each to Rs 356 and Rs 166, respectively.

Infosys, Bharti Airtel and HDFC Bank were down nearly 4% each to Rs 1,392, Rs 747 and Rs 1,200, respectively.

VALUE & VOLUME TOPPERS

Reliance Capital topped the value chart with a turnover of Rs 309 crore followed by Reliance (Rs 299.80 crore), ICICI Bank (Rs 295.40 crore), Axis Bank (Rs 157.20 crore) and Larsen & Toubro (Rs 134.70 crore).

Reliance Natural Resources led the volume chart with trades of around 1.42 crore shares followed by IFCI (89.90 lakh), Chambal Fertilisers (71.70 lakh), Jaiprakash Associates (63.80 lakh) and ICICI Bank (58.40 lakh).

Investors wonder if $700 bn is the right number for US crisis bailout

27 Sep, 2008, 1202 hrs IST, REUTERS

NEW YORK: As the US Congress works to reach a deal on the proposed $700 billion rescue for the US financial system, investors want to know if $700 billion is a magic or arbitrary number.

While investors and other experts at the Reuters Restructuring Summit this week felt the $700 billion bailout, crafted by US Treasury Secretary Henry Paulson and Federal reserve Chairman Ben Bernanke, was necessary to support the financial system, they wondered what the number would ultimately mean to investors seeking to buy distressed assets.

"Secretary Paulson has not really come with any explanation why $700 billion is the right number," Wilbur Ross, the billionaire investor who is Chairman and CEO of WL Ross and Co, said at the Reuters Restructuring Summit in New York this week. "Why not $500 billion or $1 trillion?"

Banks have written off more than $400 billion since the subprime crisis took hold last summer, but $700 billion seemed a very large number, practically pulled out of thin air, some said.

"We talk about a $700 billion bailout, but that number is, I think, almost meaningless," said Ed Altman, a professor at New York University's Stern School of Business said at the summit.
"$700 billion is what is going to be potentially purchased, but these are not valueless assets," Altman said.

If the government buys the assets from financial firms, then later sells them back to the market, it could spend much less than $700 billion, or use the sale proceeds to perpetually go back and invest more in the market, Altman explained.

Others say a big number, whatever it is, is needed to inject confidence back into the market.

"You need a big number for the bailout to have credibility in this market," St. Louis Federal Reserve President James Bullard said on Friday, noting that the market showed a sense of "panic" after the collapse of Lehman Brothers Holdings Inc and the government's rescue of insurer AIG.

But as the government becomes a player in the market for these assets, investors who specialize in purchasing distressed assets also wondered how it would interact with their investment plans.

"It sort of competes with the distressed investors that would otherwise be buyers," Michael Fineman, a portfolio manager at Third Avenue said at the summit.

"If the government is willing to step in and pay a higher price, it will initially squeeze out the distressed investor from buying these assets," Fineman said, noting the government could also find likely buyers to resell assets to in the distressed community.

Distressed investors in the United States, such as those speaking at the Reuters Restructuring Summit, have raised billions to buy up troubled mortgage loans, companies and other distressed assets.

But many have been sitting on the sidelines for now, worried that if they act too early they would "catch a falling knife," as Michael Psaros, co-founder and managing partner at firm KPS Capital Partners, termed it at the summit.

Members of Congress on Friday were reviewing draft legislative language agreed by negotiators for House and Senate Democrats and Senate Republicans on modifications to the Bush administration's $700 billion Wall Street bailout plan. Part of the draft called for the $700 billion to be granted in $250 billion installments.

How the government chooses to value the billions in assets it purchases is also a concern, the investors said.

In a survey of more than 3,000 investors on Thursday from the CFA Institute, 74 percent of those polled felt the government should pay fair value, or mark-to-market value, for the illiquid subprime, mortgage and derivatives securities it plans to purchase rather than any other value.

"The first thing they are really going to have to grapple with is how do you value assets coming in?" Ross said at the summit.

"I think a lot of us suspect that the institutions that own them probably tend to carry them on the generous side. So how do you parse the difference between what some third-party adviser might think is the right price and where they are carried? That's going to be a very critical part of the whole equation."


via:E.T

US's sixth largest bank Wachovia looking for buyers

Press Trust Of India / New York/ London September 27, 2008, 16:04 IST

Financial turbulence in the US took yet another toll with America's sixth largest bank, Wachovia, starting preliminary talks with potential buyers including Citigroup, Wells Fargo and Spain's Banco Santander, media reports say.
The reports about Wachovia looking for a bailout buyer appeared in media a day after the collapse of Washington Mutual, the biggest bank failure of US history.
According to reports, Wachovia has assimilated distressed assets worth $122 billion on account of its exposure in the housing mortgage.
Wachovia, according to its website, has assets of over $800 billion and its brokerage operations manage $1.1 trillion of client assets.
"Wachovia approached potential buyers, including Citigroup, Wells Fargo and Spain's Banco Santander, on Friday after a 27 per cent plunge in its shares deepened fears over the future of the sixth-largest US bank," UK daily Financial Times reported.
After assessing the fallout situation of its shares, Wachovia executives led by its CEO Robert Steel contacted Citi, Wells and Santander, the report said.
These three financial majors - Citi, Wells and Santander- were also interested to buy Washington Mutual Inc but ultimately JP Morgan acquired most of the WaMu.
However, US financial daily Wall Street Journal reported that, "Wachovia officials don't believe they need to rush into a deal, and the bank isn't feeling immediate pressure on its financial condition," quoting people familiar with the company.

Man Industries secured new orders worth Rs 1100 crore

Man Industries India galloped 13.56% to Rs 63.65 at 15:40 IST on BSE, after the company said it has secured new orders worth Rs 1100 crore in longitudinal submerged arc welded and helical submerged arc welded segments in the current quarter.
The company made this announcement during trading hours today, 25 September 2008.
The stock hit a high of Rs 64.80 and a low of Rs 55.95 so far during the day. The stock has a 52-week high of Rs 177 on 2 January 2008 and hit a 52-week low of Rs 53.55 on 23 September 2008.
The company’s current equity is Rs 26.64 crore. Face value per share is Rs 5.
The current price of Rs 63.65 discounts Q1 June 2008 annualized EPS of Rs 10.90, a PE multiple of 5.84.
With these orders, Man Industries’ order book has crossed Rs 1500 crore.
Man Industries has also announced the commissioning of its 3rd helical submerged arc welded (HSAW) production line at Anjar in Gujarat.
The company also acquired 155 acres of land in Little Rock, Arkansas USA for setting up a state of the art HSAW pipe manufacturing plant having capacity of 3 lakh metric tonne at an approximate project cost of $100 million.
Man Industries India’s net profit fell 16.3% to Rs 14.52 crore on 1.3% fall in net sales to Rs 316.88 crore in Q1 June 2008 over Q1 June 2007.
The company makes oil and gas pipelines.

Golden Tobacco on de-merger plan

Golden Tobacco surged 9.01% to Rs 139.25 at 13:02 IST on BSE after the company's board approved spinning off its tobacco and realty businesses into two separate companies.

The stock hit a high of Rs 145.60 and a low of Rs 132 so far during the day. The stock has a 52-week high of Rs 750 on 11 December 2007 and hit a 52-week low of Rs 100.50 on 16 September 2008.
The stock had surged 19.96% to Rs 127.70 on Wednesday, 24 September 2008, before the announcement.
The company’s current equity is Rs 17.60 crore. Face value per share is Rs 10.
The current price of Rs 139.25 discounts Q1 June 2008 annualized EPS of Rs 20.15, a PE multiple of 6.91.
The board has also approved issuing one share in each of the new companies, for every share held.
Erstwhile GTC Industries, Golden Tobacco's net profit rose 126.6% to Rs 8.86 crore on 66.1% decline in sales to Rs 15.87 crore in Q1 June 2008 over Q1 June 2007.
Golden Tobacco is a cigarette manufacturer. Its main brands are Panama, Flair, Chancellor, Esquire, Legend (a low tar and nicotine cigarette), Burton, CHL (Chancellor Harward Luxury, premium king-size cigarettes). The company was also the first in India to launch Ms Special Filter, a unique cigarette for women.

Tata Steel two block deals on BSE at an average price of Rs 486.50.

Tata Steel (CMP= Rs 482.80 ) around 1 crore shares, or 1.37% of the company's equity changed hands in two block deals on BSE at a weighted average price of Rs 486.50.

The stock hit a high of Rs 492.80 and a low of Rs 481.55 so far during the day. The stock has a 52-week high of Rs 969.80 on 29 October 2007 and hit a 52-week low of Rs 440.10 on 18 September 2008.
The company’s current equity is Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 482.80 discounts Q1 June 2008 annualized EPS of Rs 80.47, a PE multiple of 6.
As per recent reports, Tata Steel through its indirect subsidiary TS Global Minerals Holdings, has bought a 7.3% stake in Riversdale Mining, which has a coking coal project in Mozambique.
In August 2008 Tata Steel announced that its overseas unit formed a joint venture with Vietnam Steel Corporation and Vietnam Cement Industries Corporation for a steel complex in Ha Tinh province in Vietnam.
Tata Steel’s net profit rose 21.8% to Rs 1,488.40 crore on 46.9% rise in sales to Rs 6,165.03 crore in Q1 June 2008 over Q1 June 2007.
Tata Steel is an integrated steel producer which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.

Areva T&D fixed 29 October 2008 as record date for a 5-for-1 stock split.

Areva T&D India (CMP=Rs:1517)has fixed 29 October 2008 as record date for a 5-for-1 stock split.

The stock hit a high of Rs 1530 and a low of Rs 1500 so far during the day. The stock has a 52-week high of Rs 3280 on 13 November 2007 and hit a 52-week low of Rs 1199 on 1 July 2008.
The company’s current equity is Rs 47.82 crore. Face value per share is Rs 10.
The current price of Rs 1517.25 discounts Q2 June 2008 annualized EPS of Rs 54.09, a PE multiple of 28.05.
On 9 April 2008, Areva T&D India secured an order worth Rs 418 crore from Essar Constructions to provide equipments for power project in Gujarat and Madhya Pradesh.
Areva T&D India’s net profit surged 39.1% to Rs 64.66 crore on 44.5% increase in net sales to Rs 621.75 crore in Q2 June 2008 over Q2 June 2007.
The company's products and systems serve to transmit and distribute electricity, ensure the reliability, quality and safety of energy flows.

Post-Market Commentary. Thursday, September 25, 2008

Expiry of September 2008 derivatives contracts put down Market 145.34 points.


BSE 30-share Sensex lost 145.34 points to 13,547.18.

Nifty was down 50.70 points to 4110.55.

As per provisional data released by the stock exchanges after trading hours, foreign funds today, 25 September 2008, sold shares worth a net Rs 1050.38 crore. Domestic funds bought shares worth a net Rs 605.59 crore.

Emco block deal

Emco slipped 3.81% to Rs 89.60 at 16:14 IST on BSE, after 18.50 lakh shares or 3.14% equity of the firm, changed hands in a block deal on NSE at Rs 93.75 each.
The stock hit a high of Rs 99 and a low of Rs 88.20 so far during the day. The stock has a 52-week high of Rs 330 on 17 January 2008 and hit a 52-week low of Rs 86 on 18 September 2008.
The company’s current equity is Rs 11.76 crore. Face value per share is Rs 2.
The current price of Rs 89.60 discounts Q1 June 2008 annualized EPS of Rs 23.17, a PE multiple of 42.83.
In May 2008, Emco secured an order worth Rs 126-crore from Delhi Transco for new substation at Mundka, Delhi.
Emco’s net profit rose 11.5% to Rs 10.05 crore on 18.8% increase in net sales to Rs 183.35 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing and marketing furnace and rectifier transformers and electronic energy meters.

Prakash Industries Large block deal

Prakash Industries declined 1.37% to Rs 118.40 at 15:55 IST on BSE, after 59.40 lakh shares or 5.14% of the company's equity changed hands in a block deal on NSE at Rs 121.95 each.
The stock hit a high of Rs 127 and a low of Rs 116.15 so far during the day. The stock has a 52-week high of Rs 354.60 on 1 January 2008 and hit a 52-week low of Rs 109 on 18 September 2008.
The company’s current equity is Rs 115.47 crore. Face value per share is Rs 10.
The current price of Rs 118.40 discounts Q1 June 2008 annualized EPS of Rs 23.17, a PE multiple of 42.83.
Prakash Industries’ net profit rose 33.4% to Rs 66.88 crore on 43.6% increase in net sales to Rs 392.07 crore in Q1 June 2008 over Q1 June 2007.
The principal activity of Prakash Industries is to manufacture sponge iron, steel billets, wire rod and rigid PVC pipes and generation of power.

Sterlite Industries spurts on canceling restructuring plan

Sterlite Industries India galloped 11.69% to Rs 502.55 at 12:18 IST on BSE, after the company said on Wednesday, 24 September 2008, its board has decided not to pursue a proposed restructuring scheme.
The company made this announcement during trading hours today, 24 September 2008.
The stock hit a high of Rs 517.70 and a low of Rs 447 so far during the day. The stock has a 52-week high of Rs 1140 on 7 December 2007 and hit a 52-week low of Rs 405 on 18 September 2008.
The company’s current equity is Rs 141.74 crore. Face value per share is Rs 2.
The current price of Rs 502.55 discounts Q1 June 2008 annualized EPS of Rs 20.21, a PE multiple of 24.87.
In view of the recent changes in global financial markets and investor feedback, Vedanta has decided not to pursue the proposed group restructuring, it said. Sterlite is part of the Vedanta group. The company is committed to simplifying and streamlining the group corporate structure in the interest of all shareholders, Sterlite said.
On 9 September 2008, the Vedanta group had announced a revamp of the group. The restructuring was planned to result in three units focused on commodities produced by the group: copper, zinc and lead; aluminium and energy; and iron ore. The restructuring plan involved transfer of Sterlite's aluminium and energy businesses to Madras Aluminium Company, another company belonging to the Vedanta group.
Sterlite Industries India's net profit rose 77.7% to Rs 357.93 crore on a 4.8% decline in net sales to Rs 2964.43 crore in Q1 June 2008 over Q1 June 2007.
Sterlite Industries is a leading producer of copper in India. It is a part of Vedanta Resources, a London listed metals and mining major, with aluminum, copper and zinc operations in India and Australia.

Provogue India fixed 13 October 2008 as record date for a 5-for-1 stock split.

Provogue India (CMP=Rs 700 ) has fixed 13 October 2008 as record date for a 5-for-1 stock split.

The stock hit a high of Rs 716.95 and a low of Rs 699 so far during the day. The stock has a 52-week high of Rs 1460 on 14 January 2008 and hit a 52-week low of Rs 660 on 25 August 2008.
The company’s current equity is Rs 23.28 crore. Face value per share is Rs 10.
The current price of Rs 700 discounts Q1 June 2008 annualized EPS of Rs 10.59, a PE multiple of 5.99.
Provogue India’s net profit rose 27.6% to Rs 6.05 crore on 31.1% increase in net sales to Rs 67.78 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in designing, manufacturing and selling ready-made garments and other accessories under the brand Provogue. The group's products include shirts, trousers, t-shirts, sweaters, shorts, pajamas, suits, jackets, ties, socks, handkerchiefs, belts, wallets, sunglasses, bags and caps. The group distributes its products through branded stores and a network of national chain stores and multi brand outlets.

Akruti City on new projects

Akruti City plans to set up 17 warehousing facilities for National Commodity and Derivatives Exchange of India across the country.
The stock hit a high of Rs 1020.50 and a low of Rs 960 so far during the day. The stock had a 52-week high of Rs 1399 on 23 January 2008 and a 52-week low of Rs 607 on 1 July 2008.
The company has an equity capital of Rs 66.70 crore. Face value per share is Rs 10. The company has high promoter holding of 89.96% (as at end June 2008).
The current price of Rs 992 discounts its Q1 June 2008 annualised EPS of Rs 102.79, by a PE multiple of 9.65.
Meanwhile, the derivatives contracts in Akruti City have crossed 95% of the market-wide position limit and are currently in the ban period from today, 24 September 2008.
Besides setting up warehousing facilities for National Commodity and Derivatives Exchange of India (NCDEX), Akruti City also plans to redevelop bus terminals in Gujarat for a project of Gujarat government. The bus terminals will be converted into bus stations-cum-commercial and retail hubs. In the first phase, Akruti City will redevelop 5-7 bus terminals in towns such as Baroda, Surat and Mehsana in Gujarat.
Akruti City reported 272.87% surge in net profit to Rs 171.41 crore on 236.79% increase in total income to Rs 241.01 in Q1 June 2008 over Q1 June 2007.
Akruti City’s principal activity is to develop real estate. It includes commercial and residential properties and acquisition of land and land development. Currently, the company has 107 million square feet of developable land bank spread across Mumbai, Panvel, Pune and Baroda. Akruti, in association with TCG Realty, is developing a biotech park on 700 acres at Savli near Vadodara.

Post-Market Commentary .Wednesday, September 24, 2008

Sensex Up 122-points

Sensex ended up 122.21 points or 0.9% to 13,692.52.

Nifty rose 34.35 points or 0.83% to 4,161.25.


US stock futures rose boosted by Warren Buffett's Berkshire Hathaway's announcment of an infusion of $5 billion in Goldman Sachs Group. Goldman will sell $5 billion of preferred stock to Berkshire Hathaway, which will also receive warrants to purchase $5 billion of common stock with a strike price of $115 per share. Berkshire has five years to exercise the warrants. The Dow futures were up 83 points and the Nasdaq futures were up 14 points.

US-India civilian nuclear cooperation agreement moved closer to approval by Congress on Tuesday, 23 September 2008, when a key Senate Committee passed the deal with a landslide majority. However, the historic agreement is yet to clear a few hurdles in its final lap. The bill now goes to the floor of the Senate for the final ratification.

RNRL mulls Rs 12,000 cr capex for cement, shipping foray

23 Sep, 2008, 2052 hrs IST, PTI

MUMBAI: Anil Ambani-controlled Reliance Natural Resources plans to enter cement manufacturing and shipping activities with an investment of Rs 12,000 crore.

"We will invest Rs 10,000 crore in cement business and Rs 2,000 crore in shipping," RNRL Vice-Chairman Anil Singhvi said on the sidelines of the company's annual general meeting here today.

"Our foray into cement and shipping will take 3-4 years period," Singhvi said.

Earlier at the meeting, RNRL Chairman Anil Ambani said that "we are actively considering entering into cement manufacturing with 20-million tonnes capacity".

For supporting its ambitious cement business, RNRL is looking to run a shipping service. It will help the company in transporting raw materials and finished products. At present, RNRL is engaged in sourcing, supply and transportation of various fuels along with exploration, production and distribution of gas.

"We will foray into shipping business with six ships to start with. It will operate between Indonesia and Krishnapatnam (in Andhra Pradesh), carrying coal from Indonesia," Ambani said.

"We re-positioned RNRL as a complete fuel management company, covering exploration, development and production, sourcing and supply, transportation and distribution activities," he said.

"We are now equipped not just to meet the fuel requirements of our group companies but of a wider market."

Global financial crisis on banking stocks

BSE fears: local banks may reportedly suffer losses on their exposure to the US financial giants that collapsed recently.

As per reports, nine of the country's largest commercial banks including State Bank of India (SBI), ICICI Bank and HDFC Bank reportedly have exposure of $420 million (Rs 2,000 crore) in the US financial giants. As per the government, banks other than SBI would suffer losses of Rs 600 crore due to the crisis. SBI alone has exposure of $170 million in Freddie Mac and Fannie Mae. The public sector giant’s exposure in Lehman Brothers is estimated at $17 million.

The estimated losses are due to their ownership of securities sold by Fannie Mae, Freddie Mac, Merrill Lynch & Co., and Lehman Brothers Holding Inc, which have declined in value leading to marked-to-market losses, the report said.

Post-Market Commentary. Tuesday, September 23, 2008

Sensex slips 425pts; Ranbaxy tanks over 11%

All BSE sectoral indices suffered losses with IT, realty and banking leading the fall. However state-run oil marketing firms bucket weak market trend. The market breadth was weak. Ranbaxy Labs slumped over 11%.

The BSE 30-share Sensex was down 424.65 points or 3.03% to 13,570.31.

Nifty was down 96.15 points or 2.28% to 4,126.90.

Ranbaxy Laboratories declined 11.05% at Rs 308.85 on reports the Canadian drug regulator, Health Canada, issued a notice to Ranbaxy saying it will be particularly cautious about drug marketing applications from Ranbaxy after the US drug regulator blocked the sale of more than 30 generic medicines made in two factories by the company. The stock had declined 2.70% in the previous session.

Hindalco Industries fell 1.59% at 108.10 after hitting a 52-week low of Rs 106.20 on BSE. The company's Rs 5,050 crore rights share offering for subscription Monday, 22 September 2008. The sale in a ratio of three shares for every seven held at Rs 96 a share will close on 10 October 2008. The company aims to use the funds to repay a bridge loan it had taken to buy Canada's Novelis in 2007.

Software shares tumbled on growing worries about outsourcing prospects amid a global financial turmoil. Satyam Computer (down 5.98% at Rs 331.65), TCS (down 5.91% at Rs 720.75), Wipro (down 5.77% at Rs 390.45), and Infosys Technologies (down 5.19% at Rs 1,543.35), slipped. The BSE IT index underperformed the Sensex, falling 5.07% at 3,455.05. Export-driven Indian software firms earn more than half of their revenue in dollar terms.

Realty shares extended previous session's fall. Indiabulls Real Estate (down 6.93% at Rs 209.50), Housing Development & Infrastructure (down 5.97% at Rs 209.60), and Unitech (down 3.66% at Rs 123.80), slumped.

DLF fell 6.25% at Rs 394.60. As per recent reports, the company is retrenching around 300 employees across all its centres and subsidiaries as it decides to slow down its project execution, especially in Tier II cities, in the face of shrinking demand and expensive borrowing.

Goldman, Morgan woes could trigger more FII exit

23 Sep, 2008, 0345 hrs IST,Pradeep Pandey, ET Bureau
MUMBAI: With the US Federal Reserve approving the conversion of two major global investment firms into bank holding companies, Indian market is likely to witness more pullouts by foreign institutional investors (FIIs), fear BSE traders. The conversion of Goldman Sachs and Morgan Stanley into banks may see more winding down of structured investments vehicles which these entities had built in India and other Asian countries. Now, there could be a curb on their investment portfolios with much tighter regulatory norms, traders said.
Goldman Sachs and Morgan Stanley will now be regulated like any other bank and will have to follow strict ‘dos and don’ts’ of the regulation. P-Notes, exotic structured investments and other such derivatives-based instruments would have to be wound down, a senior official with a leading private securities firm said.

“As such, investments would be required to be shifted to some other subsidiaries of the proposed banks. However, on the positive side, they would be able to access public deposits,” he said. Airing a similar view, a financial market specialist with a global financial institution told ET that these entities would now be placed under much tighter regulation by the Fed, including tough capital requirements for investments. In addition, they will have to follow sectoral and group limits under overall banking norms as they will be controlled by the banking regulator, he asserted.

In the backdrop of the global turmoil of the past two weeks, FIIs have been pulling out drastically from the Indian market and have been on a continuous selling mode. In this calendar year so far, FIIs have sold a net of about $ 8.2 billion (Rs 37,000 crore) and have been net sellers for every month since May, according Sebi data.

“It is for the first time since 1994, that FIIs are net sellers for such a long sustained period,” said a technical analyst. Goldman Sachs and Morgan Stanley were granted approval on Sunday to become bank holding companies regulated by the US Federal Reserve.

Under the new set-up, the Federal Reserve becomes the primary regulator of the parent companies though the Securities Exchange Commission (SEC) continues to regulate their US securities businesses. The Federal Reserve’s control over banks is much tighter though Goldman and Morgan would gain long-term access to the Fed’s discount window and be able to access bank deposits insured by the Federal Deposit Insurance Corp.

via:E.T

Corporate bankruptcies rise, more on way

Corporate bankruptcies rise, more on way

The number of US businesses filing for bankruptcy has soared 42 percent from a year ago, according to the Administrative Office for US Courts.

Already this year, more public companies have filed for Chapter 11 and Chapter 7 bankruptcy than during all of 2007, according to BankruptcyData.com.

The credit crisis has also complicated things for struggling companies, by hurting their ability to refinance their debts or even gain financing to exit bankruptcy protection.

Auto parts maker Delphi Corp, for example, has been struggling to get financing to exit bankruptcy protection for most of the year.

For more details visit: BankruptcyData.com

Goldman, Morgan under Fed control , give up i-bank status

WASHINGTON: Global financial services provider Goldman Sachs and Morgan Stanley will now become bank holding companies, and come directly under the purview of the Federal Reserve, a move that will entail stricter regulations for the previously lightly regulated investment banks.
“The Federal Reserve Board on Sunday approved, pending a statutory five-day antitrust waiting period, the applications of Goldman Sachs and Morgan Stanley to become bank holding companies,” the central bank of the U.S. said in a statement.
This move was pursuant to the bankruptcy of Lehman Brothers and the acquisition of Merrill Lynch by Bank of America.
The transition of Goldman Sachs and Morgan Stanley from the investment banks status to a Federal Bank Holding Company would provide ongoing access to the Federal Reserve Bank discount window and expanded opportunities for funding.
“We believe that Goldman Sachs, under Federal Reserve supervision, will be regarded as an even more secure institution with an exceptionally clean balance sheet and a greater diversity of funding sources,” Goldman Sachs Chairman and Chief Executive Officer Lloyd C. Blankfein said in a statement.
Meanwhile, Morgan Stanley Chairman and Chief Executive Officer John J Mack said, “this new bank holding structure will ensure that Morgan Stanley is in the strongest possible position with the stability and flexibility to seize opportunities in the rapidly changing financial marketplace.”
In order to provide liquidity support to these banks during their transition from investment banks to regulated banks, the Federal Reserve Board has authorised the Federal Reserve Bank of New York to extend credit to the U.S. broker-dealer subsidiaries of Goldman Sachs and Morgan Stanley, the statement added.
“We view regulation by the Federal Reserve Board as appropriate and in the best interests of protecting and growing our franchise across our diverse range of businesses,” Goldman Sachs added.
These credits can be provided against all types of collateral that may be pledged at the Federal Reserve’s primary credit facility or at the existing Primary Dealer Credit Facility. — PTI
Mitsubishi UFJ to buy stake in Morgan
AP reports from Tokyo:
Mitsubishi UFJ Financial Group Inc. on Monday said it had reached an agreement to buy 10-20 per cent stake in Morgan Stanley, one of the last two major U.S. investment banks.

Chinese Banks exposure to Lehman

Two more Chinese banks have reported holding Lehman Brothers bonds, raising total Lehman debt disclosed by Chinese lenders to USD 634.8 million.

China Construction Bank Corp, the country's second-largest commercial lender by assets, said in a statement issued through the Hong Kong Stock Exchange that it holds USD 191.4 million in Lehman bonds. That was the biggest exposure reported so far for a Chinese bank to the failed Wall Street house.

A midsize lender, China CITIC Bank Corp said in a separate statement it has USD 76 million in Lehman bonds.

Analysts say the impact of Lehman's failure on Chinese banks should be limited.

Other state-owned banks have reported holding Lehman debt but say it accounts for only a tiny fraction of their assets.

China's biggest lender, Industrial & Commercial Bank of China Ltd., says it owns Lehman bonds worth USD 151.8 million.

Construction Bank's Lehman holdings are 0.29 percent of net assets and should have no effect on its financial position, the bank said. It said the bank would make allowances for possible losses.

Bank of China Ltd., the country's No. 3 lender by assets, says it owns Lehman bonds worth USD 75.6 million. Bank of Communications Ltd, the country's fifth-largest commercial lender, says it has USD 70 million in Lehman bonds.

Another midsize lender, China Merchants Bank Ltd., says its Lehman bonds are valued at USD 70 million.

Last week, China's Hua An Fund Management Co, warned of possible heavy losses due to Lehman's failure. Hua An said its International Balanced Fund is invested in notes provided by Lehman that are linked to stocks, bonds and other assets.

Taken from another Blog:

Shri Lakshmi Cotsyn soars on fund raising plan

Shri Lakshmi Cotsyn spurted 7.07% to Rs 64.35 at 14:58 IST on BSE after the company said it would consider raising funds overseas as well as from private equity players.
The company made the announcement during market hours today, 19 September 2008.
The stock hit a high of Rs 65.90 and a low of Rs 63 so far during the day. The stock had a 52-week high of Rs 203.50 on 31 December 2007 and a 52-week low of Rs 56.75 on 18 September 2008.
The small-cap textiles firm has an equity capital of Rs 14.80 crore. Face value per share is Rs 10.
The current price of Rs 64.35 discounts its Q4 June 2008 annualised EPS of Rs 52.05, by a PE multiple of 1.23.
The company also said it would increase its stake in a joint venture with UK-based Armet Armoured Vehicles to 75% from 49%.
The net profit of Shri Lakshmi Cotsyn rose 36.2% to Rs 19.26 crore on a 0.7% decline in sales to Rs 223.27 crore in Q4 June 2008 over Q4 June 2007.
Shiri Lakshmi Cotsyn manufactures and processes cotton fabrics. The company offers a wide variety of embroided fabrics, towels, denim, shirtings, and safety garments for the Army.

Himadri Chemicals spurts on overseas deal

Himadri Chemicals & Industries rose 9.80% to Rs 361.80 at 14:27 IST on BSE, after the company said its unit Himadri Global Investment has formed a joint venture with Chinese company to takeover existing coal tar distillation plant in Xiaoyi, Shanxi.
The company made this announcement during trading hours today, 19 September 2008.
The stock hit a high of Rs 362 and a low of Rs 329.95 so far during the day. The stock has a 52-week high of Rs 800 on 8 January 2008 and a 52-week low of Rs 281.50 on 1 September 2008.
The company’s current equity is Rs 31.85 crore. Face value per share is Rs 10.
The current price of Rs 361.80 discounts Q1 June 2008 annualized EPS of Rs 26.39, a PE multiple of 8.35.
Himadri Global Investment (HGIL) will hold 90% equity interest in the joint venture company (JVC) and the Chinese company will hold the balance 10%.
Himadri Chemicals & Industries’ net profit rose 13.4% to Rs 21.01 crore on 20.70% increase in net sales to Rs 91.50 crore in Q1 June 2008 over Q1 June 2007.
Himadri Chemicals & Industries’ principal activities are to manufacture and export coal tar distillation products including coal tar pitch, naphthalene, oils and corrosion protection products like coal tar.

Richa Industries on diversification buzz

Richa Industries spurted 6.56% to Rs 104.70 at 12:05 IST on BSE, on reports the company plans to invest Rs 125 crore on an infrastructure project in Uttarakhand to make steel structures.
The stock hit a high of Rs 105 and a low of Rs 99.50 so far during the day. The stock has a 52-week high of Rs 106 on 11 August 2008 and a 52-week low of Rs 16.50 on 24 September 2007.
The company’s current equity is Rs 16.93 crore. Face value per share is Rs 10.
The current price of Rs 104.70 discounts Q1 June 2008 annualized EPS of Rs 10.32, by a PE multiple of 10.15.
As per reports, the plant, which is expected to be operational by April 2009, would have a capacity of 54,000 metric tonnes per annum (MTPA).
Richa Industries’ net profit surged 273.50% to Rs 4.37 crore on 169.50% increase in net sales to Rs 41.78 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in fabric knitting, knitted fabric dyeing, finishing, garment dyeing and garment manufacturing. The company's products include knitted and processing of fabrics, cotton spinning and weaving in mills, bleaching and painting of cloth & clothing accessories.

Natco Pharma gains on new drug launch

Natco Pharma gained 2.36% to Rs 71.45 at 11:35 IST on BSE, after the company said on Friday, 19 September 2008, it has launched its nano technology drug Albupax, which is used for the treatment of breast cancer.
The company made this announcement during trading hours today, 19 September 2008.
The stock hit a high of Rs 71.85 and a low of Rs 69.70 so far during the day. The stock has a 52-week high of Rs 179.40 on 1 January 2008 and a 52-week low of Rs 61.05 on 21 July 2008.
The company’s current equity is Rs 28.04 crore. Face value per share is Rs 10.
The current price of Rs 71.45 discounts Q1 June 2008 annualized EPS of Rs 10.96, by a PE multiple of 6.52.
Albupax is the first generic version of the international brand Abraxnae of Abraxis Bio sciences, USA.
Each 100 miligram (mg) vial of Albupax bas been affordably priced at Rs 11,500. The estimated annual Indian market for this product is Rs 150 crore.
In July 2008, Natco Pharma signed a licence and supply agreement with US-based Mylan Inc for the global sale of generic version of Israeli rival Teva's patented drug Copaxone.
Natco Pharma’s net profit 8.6% to Rs 7.68 crore on 5% increase in net sales to Rs 56.51 crore in Q1 June 2008 over Q1 June 2007.
Natco Pharma manufactures generic dosage forms, bulk actives and intermediates for the Indian and international markets.

Videocon Industries Overseas acquisition

Videocon Industries surged 4.90% to Rs 228 at 10:56 IST on BSE, after the company said on Friday, 19 September 2008, its overseas unit VB (Brasil) Petroleo has acquired 100% stake in EnCana Brasil Petroleo of Brazil for consideration of $165 million.
The company made this announcement during trading hours today, 19 September 2008.
The stock hit a high of Rs 233.20 and a low of Rs 222 so far during the day. The stock has a 52-week high of Rs 868.65 on 1 January 2008 and a 52-week low of Rs 207 on 18 September 2008.
The company’s current equity is Rs 229.45 crore. Face value per share is Rs 10.
The current price of Rs 228 discounts Q3 June 2008 annualized EPS of Rs 44.49, by a PE multiple of 5.12.
VB (Brasil) Petroleo is a joint venture company incorporated in Brazil equally by Videocon Industries and Bharat PetroResources, which is a wholly owned subsidiary of Bharat Petroleum Corporation.
EnCana Brasil Petroleo assets include ten deep-water offshore petroleum exploration blocks in four concessions in Brazil.
In August 2008, Videocon Industries’ overseas unit Videocon Energy Ventures acquired 10% stake in Mozambique’s Rovuma Offshore Area 1 block from US firm Anadarko Petroleum Corporation.
Videocon Industries’ net profit rose 4.1% to Rs 255.07 crore on 18.5% increase in net sales to Rs 2612.90 crore in Q3 June 2008 over Q3 June 2007.
Videocon Industries' principal activity is to manufacture and market consumer electronics and home appliances. The company also has interest in segments like crude oil and natural gas.

Garware Offshore on new order wins

Garware Offshore Services rose 2.73% to Rs 175.25 at 10:15 IST on BSE, after the company said it has secured a firm contract for upto 3 years for its new anchor handling tug-cum-supply vessel MV Meghna.
The company made this announcement before trading hours today, 19 September 2008.
The stock hit a high of Rs 181.40 and a low of Rs 175.25 so far during the day. The stock has a 52-week high of Rs 310 on 6 December 2007 and a 52-week low of Rs 134.90 on 4 July 2008.
The company’s current equity is Rs 23.82 crore. Face value per share is Rs 10.
The annual revenue from this contract is expected to be in the region of Rs 22 crore.
In April 2008, Garware Offshore secured a contract for upto three years for its new anchor-handling tug cum supply vessel
Garware Offshore reported net loss of Rs 5.52 crore in Q1 June 2008 as compared to net profit of Rs 5.19 crore in Q1 June 2007. Net sales rose 51.6% to Rs 29.43 crore in Q1 June 2008 over Q1 June 2007.
The company's principal activity is to support drilling and oil exploration activities.

Godawari Power & Ispat Expansion plan

Godawari Power & Ispat galloped 5.30% to Rs 160 at 9:55 IST on BSE, after the company said it has signed a memorandum of understanding with the state government of Chhattisgarh for setting-up a 1000 megawatt thermal power project.
The company made this announcement after trading hours on Thursday, 18 September 2008.
The stock hit a high of Rs 160 and a low of Rs 160 so far during the day. The stock has a 52-week high of Rs 376.50 on 1 January 2008 and a 52-week low of Rs 149.05 on 24 March 2008.
The company’s current equity is Rs 28.07 crore. Face value per share is Rs 10.
The current price of Rs 160 discounts Q1 June 2008 annualized EPS of Rs 54.22, by a PE multiple of 2.95.
In July 2008, Godawari Power & Ispat signed a memorandum of understanding with the government of Chhattisgarh for setting up cement plants and power plant in the state at a total cost of Rs 628 crore.
Godawari Power & Ispat’s net profit rose 81.7% to Rs 38.05 crore on 88.3% rise in sales to Rs 320.44 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing steel intermediate products like sponge iron and ferro alloys and finished long steel products like billets, wire rods and mild steel wires, which find application in the construction and infrastructure sectors. The group operates in three segments namely steel, electricity and others.

Iam Taking Leave till 23rd Sept-08- bye

For AIG, $85 billion might not be enough

18 Sep, 2008, 1535 hrs IST, REUTERS
NEW YORK: American International Group's deal with the government is a bankruptcy liquidation in all but name, and the $85 billion it has borrowed may not be enough extra money to pay off all its obligations, particularly in its derivatives books.

AIG had $971.7 billion of liabilities at the end of June, but a subsidiary also has about $447 billion of credit derivatives on its books. That compares with a little more than $1 trillion of assets. There is a real question mark around the credit derivatives.

The $447 billion is the amount of principal the company has protected, but how that translates to actual losses is difficult to forecast without detail about the real risk. But even if AIG does not ultimately make payouts on the credit default contracts, it could have to post more collateral and write down the derivatives as markets gyrate. Financial companies have continually underestimated their potential risk during the credit crisis, and this time may not be different.

"There is substantial risk in that credit derivatives book," said Sean Egan, co-founder of rating agency Egan-Jones Rating Co. AIG declined to comment. The government has a major role in AIG's operations now - it essentially named a new chief executive, Edward Liddy, and owns nearly 80 percent of the company's stock.

But the government is widely expected to sell off AIG's assets to get its money back, rather than aggressively pursue new business, because the United States' main priority is to get its money back, rather than to maximize profit for shareholders, experts said.

"I can't imagine they'll be in business creation mode," said Dan Alpert, a banker at Westwood Capital in New York. Customers, meanwhile, are likely to try to reduce their business with AIG. Worried clients in Singapore thronged the office of an AIG unit earlier this week to try to redeem their policies. Press reports said the same happened elsewhere in Asia, one of AIG's most important markets.

"To say that confidence has been shaken is an understatement. In the insurance business, trust is of the utmost importance," said Walter Todd, portfolio manager at Greenwood Capital Associates in Greenwood, South Carolina. In other words, AIG can't grow out of its problems, and will in fact likely be forced to shrink.

But selling off assets to meet obligations is difficult when most other financial institutions around the world are reducing the assets, depressing valuations. When it's all said and done, AIG might not have enough assets to meet its obligations, which is why the company's corporate bonds are trading at less than 50 cents on the dollar, analysts said.

"Attorneys will spend the next five years sorting through this mess," said Egan-Jones' Egan.

via:E.T

Autoline Industries Overseas acquisition

Autoline Industries declined 2.08% to Rs 157.60 at 12:19 IST on BSE, even as the company said on Wednesday, 17 September 2008, its board has approved the acquisition of Cyprus-based Koderat Investments.
The company made this announcement after trading hours on Wednesday, 17 September 2008.
The stock hit a low of Rs 150 so far during the day, which is a 52-week low. The stock hit a high of Rs 157.80 so far during the day. The stock has a 52-week high of Rs 283.50 on 7 May 2008.
The company’s current equity is Rs 12.20 crore. Face value per share is Rs 10.
The current price of Rs 157.60 discounts Q1 June 2008 annualized EPS of Rs 4.39, by a PE multiple of 35.90.
Koderat Investments, a company incorporated and existing under the laws of Cyprus, will act as a special purpose vehicle (SPV) for the purpose of further investment into an Italian S.r.l. which will be in automotive design sector in Italy, Autoline said. The company is engaged in the business of medium sized engineering and auto ancillary, it added.
Autoline Industries’ net profit fell 61.6% to Rs 1.34 crore on 2.1% increase in net sales to Rs 67.33 crore in Q1 June 2008 over Q1 June 2007.
Autoline is engaged in manufacturing and designing of auto components, sheet metal components, sub assemblies and assemblies.

Pratibha Industries secured Delhi Jal Board order for water supply scheme.

Pratibha Industries declined 6.31% to Rs 228.10 at 10:29 IST on BSE, even as the company said on Thursday, 18 September 2008, it has secured an order worth Rs 156 crore from Delhi Jal Board for design and construction of water supply scheme.
The company made this announcement before trading hours today, 18 September 2008.
The stock hit a high of Rs 235 and a low of Rs 228.10 so far during the day. The stock has a 52-week high of Rs 469.80 on 2 January 2008 and a 52-week low of Rs 180.10 on 17 July 2008.
The company’s current equity is Rs 16.69 crore. Face value per share is Rs 10.
The current price of Rs 228.10 discounts Q1 June 2008 annualized EPS of Rs 27.83, by a PE multiple of 8.20.
The project is to be executed within 21 months.
On 8 September 2008, Pratibha Industries secured a contract worth Rs 44.75 crore from Delhi Jal Board for water transmission program.
In June 2008, Pratibha Industries bagged an order worth Rs 179.72 crore from Lanco Hills Technology Park for construction of a mall podium.
Pratibha Industries’ net profit surged 93.8% to Rs 11.61 crore on 169.7% rise in net sales to Rs 177.81 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in the business of infrastructure and manufacture of submerged arc welded pipes.

Post-Market Commentary. Thursday, September 18, 2008

Stocks rebound powered by banks, oil & gas
18 Sep, 2008, 1545 hrs IST, ECONOMICTIMES
Equities staged a smart recovery to close in the positive terrain Thursday following bounce back in banks and oil&gas heavyweights.

Bombay Stock Exchange’s Sensex closed at 13,326.51, up 63.61 points or 0.48 per cent. The 30-share index touched a high of 13,346.79 and low of 12,558.14 in the day.

National Stock Exchange’s Nifty ended at 4,043.95, up 35.70 points or 0.89 per cent. The broader index touched a high of 4,050.10 and low of 3,799.55 in intra-day trade.
BSE Midcap Index closed at 5083.38 down 1.09 per cent and BSE Smallcap Index ended 2.24 per cent lower at 6,075.46.

NTPC (3.79%), HDFC Bank (3.60%), Sterlite Industries (3.41%), Reliance Industries (3.06%) and ICICI Bank (2.98%) were the major Sensex gainers.

Ranbaxy Laboratories (-9.81%), Jaiprakash Associates (-7.76%), Infosys Technologies (-3.64%), DLF (-3.60%) and Tata Steel (-3.16%) were amongst the top losers.

Market breadth was negative on the BSE with 1,927 losers and 693 gainers.

(All figures are provisional)

PI Drugs & Pharmaceuticals spurts on acquisition

PI Drugs & Pharmaceuticals jumped 14.02% to Rs 37 at 12:41 IST on BSE, after the company said on Tuesday, 16 September 2008, it is acquiring the bio-pharmaceutical business of Strides Italia s.r.l known by its trademark Diaspa from Strides Arcolab.
The company made this announcement after trading hours on Tuesday, 16 September 2008.
The stock hit a high of Rs 38 and a low of Rs 30.60 so far during the day. The stock has a 52-week high of Rs 92 on 2 January 2008 and a 52-week low of Rs 26.50 on 16 September 2008.
The company’s current equity is Rs 11.09 crore. Face value per share is Rs 10.
The current price of Rs 37 discounts Q1 June 2008 annualized EPS of Rs 1.48, by a PE multiple of 25.
Diaspa's site has been inspected and qualified by the European and US Food & Drug Administration (USFDA) authorities for good manufacturing products (GMP).
PI Drugs & Pharmaceuticals’ net profit fell 64.7% to Rs 0.41 crore on 109% increase in net sales to Rs 23.28 crore in Q1 June 2008 over Q1 June 2007.
PI Drugs & Pharmaceuticals is a manufacturer exporter of specialized quality formulations having an objective of fulfilling the diverse demands of pharmaceutical industry.

ICICI Bank tumbled

ICICI Bank tumbled 4.57% to Rs 564.35 at 10:36 IST on BSE on reports the bank’s wholly owned UK unit may have to provide an additional $28 million against its investment of around $80 million in senior bonds of Lehman Brothers Inc.
The stock hit a high of Rs 600 and a low of Rs 556.35 so far during the day. The stock had a 52-week high of Rs 1465 on 14 January 2008 and a 52-week low of Rs 515.10 on 16 July 2008.
The ICICI Bank stock tanked 17.66% in eight session to Rs 591.35 on 16 September 2008 from Rs 718.25 on 4 September 2008.
India’s largest private sector bank by market capitalisation has an equity capital of Rs 1113.19 crore. Face value per share is Rs 10.
The current price of Rs 564.35 discounts its Q1 June 2008 annualised EPS of Rs 26.16, by a PE multiple of 21.56.
According to reports, ICICI Bank UK Plc, the wholly owned unit of the bank, has already made a provision of close to $12 million against investment in these bonds. Assuming a recovery of 50% of these investments, the additional provision required would be about $28 million.
ICICI Bank UK Plc.'s $80 million investment in Lehman Brothers' bonds constitutes less than 1% of its assets, and less than 0.1% of the consolidated total assets of the ICICI Group, the reports said.
Brokerage Edelweiss Capital expects ICICI Bank to record about $200 million in losses on bonds, including debt issued by Lehman.
ICICI Bank's net profit fell 6.1% to Rs 728.01 crore on a 1.6% rise in operating income to Rs 9429.98 crore in Q1 June 2008 over Q1 June 2007.
ICICI Bank provides retail-banking, corporate banking, cash management and treasury management services.

Hydro S&S Industries spurts on nod for buyback

Hydro S&S Industries galloped 7.93% to Rs 44.25 at 10:14 IST on BSE, after the company said on Wednesday, 17 September 2008, its board has approved buyback of equity shares of the company for an amount not exceeding Rs 2.63 crore.
The company made this announcement before trading hours today, 17 September 2008.
The stock hit a high of Rs 46.75 and a low of Rs 43.50 so far during the day. The stock has a 52-week high of Rs 81.60 on 1 January 2008 and a 52-week low of Rs 30.10 on 4 September 2008.
The company’s current equity is Rs 6.53 crore. Face value per share is Rs 10.
The current price of Rs 44.25 discounts Q1 June 2008 annualized EPS of Rs 0.25, by a PE multiple of 177.
The buyback will be through open market purchases at a price not exceeding Rs 60 per share, company said.
Hydro S&S Industries’ net profit fell 97.40% to Rs 0.04 crore on 36.90% increase in net sales to Rs 35.09 crore in Q1 June 2008 over Q1 June 2007.
The company is engaged in manufacturing reinforced polypropylene compounds. Its products include polymer compounds.

Ranbaxy slumps on US ban

Ranbaxy Laboratories slumped 8.15% to Rs 372.30 at 10:09 IST on BSE on reports the US government has banned more than 30 generic drugs made by the company citing poor quality in two of its Indian factories.
The stock hit a high of Rs 390 and a low of Rs 363.10 so far during the day. The stock had a 52-week high of Rs 613.70 on 19 June 2008 and a 52-week low of Rs 299.90 on 22 January 2008.
India’s largest drug maker by sales has an equity capital of Rs 187.03 crore. Face value per share is Rs 5.
The current price of Rs 372.30 discounts its Q1 June 2008 annualised EPS of Rs 2.54, by a PE multiple of 146.57.
According to reports, the US Food and Drug Administration (US FDA) would block more than 30 generic drugs from entering the United States following ongoing procedural violations in manufacturing at Ranbaxy's Dewas and Paonta Sahib plants in India.
It also will not approve any new drugs made at the plants until the problems are resolved. The violations pertained to the manufacturing process and not the drugs themselves, the reports added, urging patients not to stop taking any medications and to talk to their doctors. A sampling of products made at the two plants showed no concerns, the reports added.
India has become one of the world's leading suppliers of generic drugs, and concern about Ranbaxy has been growing since FDA inspectors uncovered quality problems at one of its factories in 2006.
Ranbaxy Laboratories’ net profit declined 91.8% to Rs 23.73 crore on a 19.9% increase in net sales to Rs 1216.92 crore in Q2 June 2008 over Q2 June 2007.
Ranbaxy Laboratories manufactures and markets, generic pharmaceuticals, value added generic pharmaceuticals, branded generics, active pharmaceuticals and intermediates.

Post-Market Commentary .Wednesday, September 17, 2008

Sensex tanks 1682 points in seven trading sessions on US financial turmoil
Intense selling pressure in key index pivotals dragged the key benchmark indices lower in volatile trade. The BSE 30-share Sensex, extended losses for the seventh straight day today, 17 September 2008, declining 255.90 points. The S&P CNX Nifty settled just above the psychological 4,000 level.
ICICI Bank shed over 4.5% and Reliance Industries shed over 3%. Sterlite Industries tumbled a little under 9% and ITC lost over 5%. The market breadth was weak. All BSE sectoral indices ended in red.
The US Federal Reserve in a meeting on Tuesday, 16 September 2008 announced a $85 billion rescue plan to help American International Group in exchange for a 79.9% stake. The deal would avoid the biggest corporate bankruptcy ever and follows a government bailout of mortgage lenders Freddie Mac and Fannie Mae earlier this month
Meanwhile, the US Federal Reserve at its policy meet on Tuesday, 16 September 2008, kept its target for the federal funds rate at 2%. Fed said that the strains in financial markets have increased significantly and labour markets have weakened further. Economic growth appears to have slowed recently, partly reflecting a softening of household spending.
National Stock Exchange (NSE) on Tuesday, 16 September 2008, said there are no outstanding open positions/settlement obligations of Lehman Brothers Securities currently in the cash market segment and derivatives segment of NSE. Lehman Brothers Securities can operate only in the cash market segment on pre-funding of their trades, NSE said.
The Reserve Bank of India (RBI) on late Tuesday, 16 September 2008 stepped in with measures to support the rupee — which has been battered to almost 47 against the dollar — and supply cash in the money market. The move will increase dollar supply and lower banks’ borrowing cost in the overnight call money market. RBI has hiked the maximum interest that banks can pay on NRI deposits by 50 basis points for dollar as well as rupee deposits.
India's largest private sector bank in terms of net profit ICICI Bank plunged 4.75% to Rs 563.25, off day’s low of Rs 530. The sell-off was on reports the bank will have to take a hit of $28 million on account of the additional provisioning that ICICI Bank's UK subsidiary will have to make after Lehman Brothers Holdings, the fourth-largest investment bank filing for bankruptcy.
Meanwhile, the bank denied rumours of top management selling shares over the last few days.
Ranbaxy Laboratories, India’s top drug maker by sales slumped 4.41% to Rs 388. The stock tumbled on reports the US government has banned more than 30 generic drugs made by the company citing poor quality in two of its Indian factories. The stock was already on a sustained downtrend ever since 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.

FOREX RATES-16-09-08

BULLION RATES-16-09-08

RBI asks Lehman Brothers' arms not to remit money

16 Sep, 2008, 2152 hrs IST, PTI
MUMBAI: The Reserve Bank today asked US investment bank Lehman Brothers' NBFC and primary dealer arms not to remit money in forex without its approval.

The central bank also stopped the Lehman Brothers Fixed Income Securities, the primary dealer arm, to deal in government securities.

Lehman Brothers has succumbed to the financial turbulence and has filed for the world's biggest ever bankruptcy protection.

"RBI is keeping a close watch on the developments of filing of Chapter 11 bankruptcy petition by Lehman Brothers Holding in the US and is in constant touch with banks and other market participants to manage any fallout of these developments in the Indian markets in an orderly manner," the central bank said in a notification.

"Lehman Brothers Fixed Income Securities has been advised not to undertake transactions in Government securities as a primary dealer in the primary market," RBI said.

The central bank also asked the primary dealer arm not to declare any interim dividend without its approval.

Besides, RBI asked Lehman Brothers Capital Ltd, the NBFC arm, to seek its approval before reducing its direct or indirect liability in any institution in India or overseas.

The primary dealer arm was also advised not to remit any amount to its holding company or any other group company without approval of RBI.

In a separate move, RBI today announced measures to inject liquidity in the system, coping the crisis thrown out by meltdown of two US financial institutions and advance tax payments by corporates.

IRDA seeks status report from Tata AIG

16 Sep, 2008, 2255 hrs IST, PTI
NEW DELHI: Insurance regulator IRDA today asked insurance provider Tata AIG to clarify if it was solvent in the wake of reports that the venture's American partner AIG was in deep financial trouble.

The venture was conspicuously silent and no comments could be obtained till late this evening, with the company hedging the queries throughout the day by saying it would come out with a statement soon.

"Having regard to the developments reported in USA, the IRDA has asked for the reports of the companies in the matter," the regulator said in a statement.

AIG holds 26 per cent and Tatas 74 per cent in the JV business that offers both life as well as general insurance.
The IRDA statement said that the recent developments in the New York Financial Markets have caused concern in the financial markets in India.
Certain newspapers have reported that AIG, which is a leading insurance group of the USA, has sought financial support from the Fed Reserve and have voiced concerns about the impact the developments in AIG would have on the general and life insurance companies in India, it said.

IRDA also noted that the accounts of these two companies as on March 31, 2008 indicate that both companies have satisfactory solvency margins which are adequate to meet their liabilities.

Both the companies are registered under the Indian Companies Act and are bound by the provisions of the Insurance Act and other Regulations, it said. AIG Group, operating in the country for more than five year, has 12,000 employees.

Goldman Sachs 3rd-quarter net plunges 70 percent

16 Sep, 2008, 1801 hrs IST, REUTERS
NEW YORK: Goldman Sachs Group Inc said on Tuesday third-quarter earnings plunged 70 percent as one of the worst market slumps ever weighed on banking and trading results. The largest U.S. investment bank reported net income of $845 million, or $1.81 a share, for the quarter ended August 29, down from $2.85 billion, or $6.13 a share, a year earlier.

Net revenue fell by half to $6.04 billion from $12.3 billion. "This was a challenging quarter as we saw a marked decrease in client activity and declining asset valuations," Lloyd Blankfein, Goldman's chief executive, said in a statement. The results come as the year-long credit crunch gains steam.

Six months after Bear Stearns collapsed and was acquired by JPMorgan Chase , Lehman Brothers Holdings Inc on Monday filed for bankruptcy protection while Merrill Lynch & Co rushed into the arms of Bank of America Corp.

Lehman last week reported a third-quarter loss of $3.9 billion -- on the heels of a $2.8 billion second-quarter loss -- fueled by nearly $8 billion in write-downs as well as steep declines in banking, underwriting and trading revenue.

Rupee posts biggest fall in a decade

16 Sep, 2008, 1821 hrs IST, REUTERS
MUMBAI: The rupee posted its biggest fall in a decade on Tuesday, hit by risk aversion and banks arbitraging a weaker offshore rate, although suspected central bank intervention stopped the slide just short of 47 per dollar.

The partially convertible rupee ended at 46.89/90 per dollar, off a trough of 46.99 which was its lowest since July 24, 2006.

"The rupee may test 47.20-25 levels in the near term," he added. Dealers said the central bank was seen selling dollars to halt the rupee's sharp decline, but sales were offset by demand for the US currency. At its low on Tuesday, the rupee was down 6.5 percent in September and more than 16 percent in 2008. Dealers estimated the central bank had sold $1.5-$2 billion to put a floor under the rupee on Tuesday.

Indian shares pulled out from a nosedive to end almost level on Tuesday after they had opened down 3.5 percent. Capital outflows from the local shares so far in 2008 total a net $8.4 billion, including $1 billion in September, a sharp turnaround from a record net inflows of $17.4 billion in 2007.

Traders said broad strength in the dollar versus other currencies overseas was also hurting sentiment on the rupee. The dollar steadied near 4-month lows versus the yen on Tuesday, but held gains against high yielders as investors took refuge in safe-haven assets following the collapse of Lehman Brothers.

Jetking Infotrain fixed 26 September 2008 as the record date for 1:2 bonus issue.

Jetking Infotrain rose 0.39% to Rs 325 at 11:51 IST on BSE, after the company said on Tuesday, 16 September 2008, its board has fixed 26 September 2008 as the record date for 1:2 bonus issue.
The stock hit a high of Rs 335.40 and a low of Rs 320 so far during the day. The stock has a 52-week high of Rs 433.70 on 6 November 2007 and a 52-week low of Rs 251 on 2 June 2008.
The company’s current equity is Rs 3.93 crore. Face value per share is Rs 10.
The current price of Rs 325 discounts Q1 June 2008 annualized EPS of Rs 35.74, by a PE multiple of 9.09.
Jetking Infotrain’s net profit surged 117.28% to Rs 3.52 crore on 9.94% increase in net sales to Rs 10.95 crore in Q1 June 2008 over Q1 March 2008.
Jetking Infotrain provides training in the field of computer hardware and networking and relevant courses. The institute operates through 85 training centers with 2500 faculty members.

Bliss GVS Pharma setting 30 September 2008 as record date for 3:5 Bonus

Bliss GVS Pharma slipped 1.62% to Rs 39.50 at 11:33 IST on BSE, even as the company said on Tuesday, 16 September 2008, its board has fixed 30 September 2008 as record date for 3:5 bonus issue.
The company fixed record date during trading hours today, 16 September 2008.
The stock hit a high of Rs 42.50 and a low of Rs 39.50 so far during the day. The stock has a 52-week high of Rs 78.59 on 18 January 2008 and a 52-week low of Rs 23.50 on 17 September 2007.
The company’s current equity is Rs 6.45 crore. Face value per share is Rs 1.
The current price of Rs 39.50 discounts Q1 June 2008 annualized EPS of Rs 4.14, by a PE multiple of 9.45.
Bliss GVS Pharma’s net profit surged 52.3% to Rs 6.67 crore on 60.1% increase in net sales to Rs 22.56 crore in Q1 June 2008 over Q1 June 2007.
The company operates in two segments, healthcare products and pharma products.

Mather & Platt Pumps Delisting

Mather & Platt Pumps was locked at upper limit of 20% to Rs 140.50 at 10:37 IST on BSE after the company said its promoter proposes voluntary delisting of the company from all the stock exchanges.
The company made the announcement before market hours today, 16 September 2008.
The stock had a 52-week high of Rs 239.75 on 20 November 2007 and a 52-week low of Rs 90 on 17 July 2008.
The small-cap motor pumps maker has an equity capital of Rs 9.23 crore. Face value per share is Rs 10.
The current price of Rs 140.50 discounts its Q2 June 2008 annualised EPS of Rs 13.04, by a PE multiple of 10.77.
The company said in a release that its promoter WILO SE proposed to voluntary delist the company from all the stock exchanges where it is presently listed, i.e. Bombay Stock Exchange and Pune Stock Exchange. The promoter has also proposed Rs 150 as the delisting price. The promoter WILO AG holds 62.84% in the company (as on 30 June 2008).
The net profit of Mather & Platt Pumps rose 2910% to Rs 3.01 crore on a 100.5% rise in sales to Rs 63.65 crore in Q2 June 2008 over Q2 June 2007.
Mather & Platt Pumps manufactures pumps and valves to all core industries. The company renders services like installation and commissioning of pumping plants, training, preventive maintenance, supply of spare parts , retrofit, field services and repairs.

Post-Market Commentary. Tuesday, September 16, 2008

Sensex slipped 12.47 points or 0.09% at 13,518.80. The Sensex opened with a downward gap of 479.54 at 13,051.73.

Nifty rose 2 points or 0.05%, to 4074.90. Nifty recovered from a low of 3919.35.


As per provisional data released by the stock exchanges after trading hours, foreign funds today, 16 September 2008, sold shares worth a net Rs 1303.41 crore. Domestic funds bought shares worth a net Rs 612.36 crore.

India's largest private sector bank in terms of net profit ICICI Bank plunged 5.23% to Rs 595.05 on 55.56 lakh shares on concerns it may incur losses tied to the US credit market turmoil. ICICI Bank said on Tuesday, 16 September 2008, it had exposure to 57 million euros ($81 million) of Lehman Brothers senior bonds, adding the potential losses were not material.
Among side counters, Hercules Hoists (up 20% to Rs 3040.30), IVP (up 15.44% to Rs 31.40), Simplex Castings (up 11.98% to Rs 52.80), and Century Enka (up 11.41% to Rs 103.95), surged.

KSK Energy Ventures surged 17.13% to Rs 202.05. The company said in a statement today, 16 September 2008, the shareholding of Lehman Brothers and its units in the company was locked in for a year. Lehman affiliates hold 28.41% in the company, which they had acquired as a part of a pre-initial public offer (IPO) transaction.