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an. 8 (Bloomberg) — Indian stocks may decline in 2010 after their best year since 1991 on prospects for higher interest rates, reduced stimulus measures and an outflow of investment from emerging markets, Ambit Capital Pvt. Said.

The benchmark Sensitive index may trade in a range of 15,000 to 19,000 this year, said Andrew Holland, chief executive officer of equities at Ambit Capital. That’s a decline of as much as 15 percent from yesterday’s close of 17,615.72. The Sensex rose 81 percent in 2009, its best year since 1991.

“It’s not going to be a great year for stock market performance and I would have a defensive portfolio in the first half as global headwinds are a cause for concern,” Holland, the former managing director for equity proprietary trading at Merrill Lynch in India, said in an interview in Mumbai yesterday. “Rising bond yields and stimulus measures being pulled out from the system is worrying.”

The rise in India’s food prices to an 11-year high is adding pressure on the central bank to lift borrowing costs after reductions between October 2008 and April 2009 helped shield Asia’s third-largest economy from the global recession. Finance Secretary Ashok Chawla said this week the extension of stimulus measures isn’t “good” for the economy and that the central bank will decide on interest rates on Jan. 29.

Fund raising by Indian companies and the government’s divestment program may total $25 billion this year and divert funds from existing stocks, Holland said. Indian companies raised $15 billion from share sales in the country last year.

 Source: http://www.businessweek.com

MUMBAI: Equity benchmarks closed flat on Thursday in a choppy trade as investors hesitated to buy at higher levels ahead of the extended weekend. 
The market will stay closed on Friday on account of Gandhi Jayanti.

On Thursday, the 30-share Sensex, which breached the 17000-point mark on Wednesday, added over 7 points to close at 17134.55 points. The 50-share Nifty tested the crucial 5100-point level, but settled lower to close at 5083.40, up 0.55 points. In the broader market, declining shares outnumbered advancing shares in the ratio 1663:1123 on BSE.

“There is not really too much left in terms of the pure recovery trade because valuations have surged almost 100% and the upgrade to earnings has been marginal,” said Vetri Subramaniam, head — equity funds at Religare Mutual Fund.

“I think there is perhaps a little bit of upside surprise to come through on these but even if you factor that in, that markets are really trading close to almost around 19 times FY10 earnings and that really does not leave you with too much room for comfort in terms of valuations,” he added.

According to technical analysts, if Nifty manages to break 5100 on good volumes next week, the index could surge to 5200 levels. As per NSE provisional figures, foreign portfolio investors were net buyers of shares worth Rs 976 crore. Domestic institutions net sold shares worth Rs 332 crore.  source - ET
 

MUMBAI: Indian markets defied expectations of continuation of bull-run as investors who were stuck holding stocks at higher levels utilised the opportunity to reduce their portfolio by booking handsome profits.

While a group of investors cashed in profits, others bought on dips sensing revival in economic growth on hopes of a stable government. This resulted in a huge volatility in early session.

Market gave a thumbs-up to the UPA’s victory in 2009 general elections. The new government is expected to carry forward economic reforms more aggressively as it will not be bogged down by the Left parties or other regional parties. Trade halted on Monday after the benchmarks surged around 20 per cent triggering to two-upper circuits for the first time ever.

“We believe investors should use this opportunity to exit from the market as we anticipate a descent to levels of 13,500–13,750. While we recommend that every dip should be used as opportunity to enter into the market, it would be prudent to book profits at 14,800–15,000 levels. For the day we are positive on the market but advice profit booking at higher levels,” said Religare Securities report.

At 10:45 am, Bombay Stock Exchange’s Sensex was at 14386.81, up 102.60 points or 0.72 per cent. The 30-share index witnessed sharp volatility of over 900 points in early trade. The index touched an intra-day high of 14757.82 and low of 13834.13.

National Stock Exchange’s Nifty was at 4328.80, up 5.65 points or 0.13 per cent. The index swung 300 points early in the day between intra-day high of 4464.90 and low of 4167.65.
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The Bombay Stock Exchange scaled to a three-month high at midsession on Thursday by adding over 475 points ahead of a gathering of world leaders in London to consider an agenda aimed at ending the global economic slump.

After a better start, the Sensex surged 475.47 points at 10,377.46 at 1245 hours, a level last seen on January 6, as funds indulged in buying heavy-weight stocks led by interest-sensitive realty and banking sectors on expectations of interest rate cuts.

The National Stock Exchange index Nifty spurted by 141.80 points at 3,202.15 at the same time.
Marketmen said the buoyancy was based on expectations that the G-20 summit of world leaders is likely to ease the worst economic crisis since the 1930s.

They said low inflation may induce rate cuts by the RBI, somethingg which would boost sales of homes and consumer durables.

 Feb. 6 (Bloomberg) — Satyam Computer Services Ltd., the Indian software provider at the center of the country’s biggest fraud investigation, rose in Mumbai trading after it named a chief executive officer ending four weeks of leadership vacuum.

Satyam rose 5.5 percent to 49 rupees at 10:01 a.m. local time, the most since Feb. 2. The benchmark Sensitive Index rose 1 percent.

A. S. Murty, a 15-year Satyam veteran, was yesterday named CEO and tasked to help reassure clients, creditors and employees that the Hyderabad-based provider can survive, while the board evaluates bids from Larsen & Toubro Ltd. and other suitors. The company has been run by state-appointed directors since its founder and former chairman Ramalinga Raju said he falsified accounts.

The 50-year-old electrical engineer who oversaw global delivery of the company’s services in his previous role as chief delivery officer may have his task cut out trying to keep customers from joining State Farm Mutual Automobile Insurance Co. in canceling contracts.

“The stock should react positively because one part of the work is over,” Tarun Sisodia, a Mumbai-based analyst at Anand Rathi Financial Services Ltd. said yesterday. “The uncertainty over the company’s future, however, will remain in investors’ minds as long as there isn’t clarity about the financials.”

Satyam said on Jan. 23 that selecting a CEO and finance chief was critical for the company and its investors after the scandal wiped out about 80 percent of market value in less than three weeks.

Source

MUMBAI: Beleaguered IT major Satyam Computer today surged over 31% on country’s two main bourses, amid software company iGate expressing interest n acquiring parts of the company.

Shares of Satyam surged 31.25% to settle at Rs 38.85 on the BSE. During the trade the scrip had surged to a high of Rs 39.30, on the BSE.

Analysts said that the gain in Satyam scrip was mainly due to acquisition rumours doing rounds about the IT firm.

iGate CEO Phaneesh Murthy today said that the company was interested in initiating talks for a possible acquisition of some businesses of Satyam.

“We are interested in a dialogue with Satyam and currently are quite keen and comfortable to acquire selective portions of the business,” Murthy said.

On the National Stock Exchange, the scrip closed with a gain of Rs 38.85, up 31.25 per cent after touching an intra-day high of Rs 39.35 on the NSE.

Over 20.26 crore shares got traded on the NSE, while 11.14 crore shares changed hands on the BSE.

Satyam’s director Tarun Das had earlier said that the company had been approached by Indian and international IT companies and that the board would decide on it.

Murthy said that, “We have to wait for the new board at Satyam to evaluate all strategic options and based on that evaluation, set the direction for the company, before we disclose what our strategic plan is.”    - Source: TOI

MUMBAI: The Bombay Stock Exchange benchmark Sensex tumbled nearly 300 points on Monday, the third time in a row, on aggressive selling by funds,
weak opening in European stock markets , and the World Bank debarring more software companies, including Wipro, till 2011.

The Sensex, which had been falling in the last two trading sessions after the Satyam Computer fraud came to light, fell further by 296.42 points at 9,110.05. It touched the day’s low of 9,024.45 and a high of 9,331.13 points.

The 50-share National Stock Exchange index Nifty fell 99.90 points at 2,773.10, after touching a low of 2,748.55.

Wipro, the third software producer and a component of the key index, fell 12 per cent soon after the World Bank barred the company from direct contracts until 2011, citing a conflict of interest. The stock ended with a fall of Rs 23.30 at Rs 227.35.

The government’s moves to put the beleaguered software firm back on track failed to lift the broader markets, as negative global cues weighed on the investor sentiments.

The government’s moves to put the beleaguered software firm back on track failed to lift the broader markets, as negative global cues weighed on the markets. Asian stock markets
retreated on Monday as a jump in US unemployment intensified concerns the global economy is facing a prolonged slump.

The Sensex is down 135 points to 9,271 while Nifty has shed 50 points to 2,822 level.

“Markets still remain in a bearish trend,” said Ajay Bagga, chairman of Financial Planning Standards Board of India. On Satyam, he said that the IT company’s brand image has been tarnished and the extent of liabilities needs to be figured out. However, the stock has rallied over 50 per cent after the government appointed three members to Satyam Computer’s board.

In a setback to another IT stock, Wipro, it is down nearly 4 per cent after Wipro disclosed that it can’t contest World Bank contracts for 2007-11.

Source  /courtesy: NDTV profit 

All about Satyam scandal / scam at www.ghotala.in

MUMBAI (Reuters) - The BSE Sensex is expected to start lower on Monday, tracking weaker regional markets, but Satyam Computer Services Ltd could bounce after the government appointed a three-man board to restore confidence in the scandal-hit outsourcer.

“Whatever shares had to be sold have already been sold and now with the old board out and a new board in, foreign investors will feel encouraged to invest in the stock and in the Indian market,” said Arun Kejriwal, director of Kris Brokerage.

An accounting fraud, revealed by chairman and founder Ramalinga Raju last Wednesday in a stunning resignation letter, has battered Satyam shares, with its market value plunging to $330 million at Friday’s close, against more than $7 billion just six months ago.

Bigger rivals Infosys Technologies, which reports December quarter result on Tuesday, Tata Consultancy Services and Wipro are expected to be in focus on a

perception they could benefit from problems in Satyam.

However, the main BSE index, which fell 5.5 percent last week to 9,406.47, could ease on concerns the Satyam scandal could trigger tighter regulations. Foreign funds sold $262 million worth of Indian equities on Wednesday following Satyam’s revelations.

Read  about satyam scandal at www.ghotala.in

Satyam was - one of the favourite large-cap stocks for investors. I am left wondering - if such things happen in a large-cap company, which is one of India’s top…What is going on in others? But there is one thing - this further makes us understand what risk of Equity investing actually is… No company is safe.

This could be just the tip of the iceberg, god knows who else in Satyam is involved and its the investors who take the grunt.

Read full story>

Also Read Satyam actual letter from Mr. Ramalinga Raju to its board directors admitting fraud

For the second time last week, the Sensex on Friday stood at above the 10K mark. The closing level of 10,099.91 points marked a gain of 4.2 per cent over the previous week’s close. Some positive momentum emerged in the markets last week after a lower Inflation figure of 6.8 per cent was announced (for the week ended December 6). This figure was 1.2 percentage points lower than the previous week’s figure.

Net investment by foreign institutional investors (FIIs) for last week stood at Rs 330.9 crore. The price of crude Oil stood at $40.98 per barrel at the end of last week, falling nearly 7.6 per cent during the week.

NEW DELHI: Underwriting could become mandatory for the initial public offers (IPOs). The proposal is part of the initiatives which are under consideration of the market regulator to discipline the primary market and ensure quality paper.

An underwritten issue, it is understood, would also give confidence to investors that the issue has been vetted by domain experts after considering the risk factors. It could help obtain better pricing as institutions would not want to underwrite issues that are over-aggressively priced and run the risk of devolving substantially. The move comes in the backdrop of some of the big IPOs - Emmar MGF, Wockhardt etc - being called off. In February, these issues were called off by the promoters after failing to woo investors following cut in price band and extension of deadline.

The proposal has already been given an in-principle go-ahead by the Primary Market Advisory Committee, which is at present discussing the issue of making the IPO process more efficient and transparent. The nitty-gritty of its implementation, however, is yet to be firmed up, sources told ET. However, the proposal will finally have to be cleared by the SEBI board before it is implemented.

Source

Reliance Power on Sunday announced it would offer non-promoter shareholders three bonus shares for every five held on the record date.

The move to issue the bonus is being projected as an attempt to compensate RelPower shareholders for losses suffered after the stock listed below the offer price on February 11.

Retail buyers were offered the stock at Rs 430 per share while others had the option to buy it at Rs 450. On Friday, five sessions after the announcement of the bonus proposal, the stock closed at Rs 417, still 7.3% off its IPO price of Rs 450.

After the bonus issue, the cost of holding each share will go down to Rs 269 for retail investors while for others, it will be Rs 281. This, the company said, would cut investors’ losses by 40%. However when Friday’s closing stock price is compared with the post-bonus price, the gain for retail shareholders is Rs 148 while for others it is Rs 190.

India’s benchmark stock index tumbled the most in two weeks, led by Reliance Industries Ltd., after the government forecast economic growth would slow as higher interest rates curb consumer spending. Reliance Industries, the nation’s most valuable company, and Larsen & Toubro Ltd., the country’s largest engineering company, fell to two-week lows. Oil companies declined after Minister Murli Deora declined to say when the Cabinet would discuss retail pump prices for gasoline and diesel.

India, Asia’s third-largest economy, is expected to expand 8.7 percent in the year to March 31, the weakest pace since 2005, according to India’s statistics office. Growth was 9.6 percent in the last financial year. The central bank has raised interest rates nine times since October 2004 to contain inflation.

Reliance Infratel IPO is the next big public issue from the Anil Dirubhai Ambani led ADAG group.  Reliance Infratel IPO will issue over 8.91 crore equity shares of Rs. 5 each, with the price band to be decided later.The company has filed its Draft prospectus with SEBI for Reliance Infratel IPO which is engaged in the tower business and plans to raise around Rs. 5000 to 6000 crore through the public issue by selling only 10% of its post-issue paid capital which puts the overall company valuations around Rs. 60000 crore. It is previously known that the company has sold 5 percent stake in the Reliance Telcom Infrastructure valued at Rs. 1400 crore to a group of institutional investors.

Reliance Infratel IPO Analysis : Company is engaged in the business of Building and operating the telecommunication towers and has over 14,000 towers across India when its was last valued, and the company has set a target to reach 40,000 towers by the end of March 2008. Reliance Infratel is the single largest tower company in India with aggressive expansion plans to add more than 20000 towers in the coming financial year.

Reliance Infratel is the demerged tower business company of Reliance Communications which holds 95 per cent stake in the company . With the upcoming Reliance Infratel IPO, Reliance Communication share holders will get value unlocking of around Rs. 250 to Rs 300 per share. Based on this news the stock price of Reliance Communications soared up to close at Rs. 685 per share up by 11 per cent.

Post Reliance Infratel IPO , the company plans to use the funds raised through the issue for financing the passive infrastructure development of tower sites. Reliance Infratel IPO is to be listed on the BSE and NSE and the company has appointed

More information on the Reliance Infratel IPO Subscription dates and analysis and review of the Reliance Infratel IPO will be posted here soon. Do check back for updates on the Reliance Infratel IPO

Reliance Power IPO Listing Date has been announced by the company and the issue is all set to list on the BSE and NSE exchanges on Monday, 11th of February, 2008. Reliance Power IPO Allotment has been recently completed in record time and the Refunds have already started coming in to the bank accounts as per the registrar. Reliance Power IPO Listing price is expected around Rs. 600 according to most of the analysts. Grey Market Premium for the issue is also quoting around Rs. 180, which indicates that the listing is expected at over Rs. 625. Investors can stay invested in the Reliance Power IPO with medium to long term horizon, as the company is expected to do well in the buzzing power space in the coming years. Good luck for all and can definitely expect that the listing of Reliance Power IPO will bring more joys to the markets. Reliance Power IPO stock code will be updated soon. Do visit us back for Reliance Power IOP listing Details.

Mumbai (PTI): The Bombay Stock Exchange benchmark Sensex moved up by 253.45 points in early trade on Friday on emergence of buying by funds at existing lower level.

The 30-share index, Sensex, which lost 110 points on Thursday, bounced back by 253.45 points to 17,902.16 in the first five minutes of trade.

Similarly, the wide-based National Stock Exchange’s index Nifty also rose by 77.90 points to 5,215.35 as most of the heavy-weight stocks like Reliance Industries and Infosys Technology gained substantial ground.

Anil Dhirubahi Ambani group (ADAG) is likely to refund the excess money of Reliance Power IPO from February 1, as the working of share allocation may likely to complete today as per market sources assumes.

The market sources has spread the notion that 4.3 million investors out of 5.0 million will get only 15PO shares each who has applied for more than 225 shares.

No share would be allotted to those who have applied less then 225 shares.

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SENSEX CRASHES…

Sensex, Nifty see largest-ever fall

It was nightmare on Dalal Street today as the market saw its second biggest fall since 2006.

Sensex closed at 17605.35, down 1408.35 points and Nifty at 5208.80, down 496.50 points from the previous close.

Source : Rediff