Saturday, 15 December 2007

Precision Pipes IPO

Precision Pipes and Profiles Company, a Delhi-based OEM supplier to the automobile industry, is entering the capital market with an initial public offering (IPO) of 50-lakh shares on December 17, 2007.

The price band of the issue has been fixed between Rs 140 and Rs 150 per equity share of face value of Rs 10 each. The bids will close on December 20.

"Subscribe" has been the general view on this IPO.

Mahindra Holidays IPO to open in Jan

Mahindra Holidays said on Friday that it is considering a pre-IPO sale of 2.5 million shares by January 2008.

Brigade Enterprise IPO subscribed 11.46 times

The initial public offer of Brigade Enterprise was subscribed 11.46 times at close Thursday, as per NSE website

BEL IPO over-subscribed nearly 13 times

The initial public offering of real estate firm Brigade Enterprises Ltd today got over-subscribed by nearly 13 times.

Investors flock to mid-cap counters

Mid and small-cap shares remained in focus on Friday, as investors continued to mine the broader market in search of value bets. With the valuations of frontline shares perceived to be stretched, investors restricted activity in this segment to a few, resulting in equity benchmarks closing marginally lower in a listless trade on Friday.

The Sensex closed at 20,030.83, down 73.56 points, or 0.37%. Nifty ended at 6,047.70, down 10.4 points, or 0.17%. In the broader market, the small and mid-cap indices rose 1-2%. Gainers led losers at 2,082:830 on BSE, indicating that the bullish streak is intact. Analysts and fund managers said investors are lapping up mid- and small-cap shares because many of them trade at a discount in valuation to their frontline counterparts.

“Mid-caps are now trading at a 20-25% discount to large caps, the highest over the past 4 years. Therefore, the trend witnessed in November, where benchmark indices declined while the broader market indices outperformed, may continue for next few weeks,” Merrill Lynch said in a recent note.

Experts feel that the frontline shares, which constitute the benchmark indices, are unlikely to rally in the near term, unless foreign institutions return to India in a big way. The Sensex is trading at roughly 20 times the 2008-09 estimated earnings.

Many foreign institutions prefer to stick their bets to frontline shares due to higher liquidity and that
these companies are perceived to follow better corporate governance standards.

Foreign institutional investors (FIIs), according to provisional data on NSE, on Friday net sold Indian shares worth Rs 647.1 crore, while domestic financial institutions net bought to the tune of Rs 105.18 crore.

Since the US Federal rate cut on Tuesday, selling by foreign institutions have risen, while domestic institutional buying has been fading. So far this year, FIIs have net bought Indian shares worth Rs 70,421, according to Sebi data.

Elsewhere in Asia, markets extended losses on Friday, with Japan’s Nikkei and Topix indices falling close to a percentage each. Hong Kong’s Hang Seng dropped 0.6% and Singapore’s Straits Times ended roughly 0.4% lower.
Back home, the inflation index rose to a three-month high mainly due to the statistical effect of a lower base. The whole price index (WPI) rose to 3.75%, in the week ended December 1 from the same period last year, up from the previous week’s 3.01%.

Source: Economic Times

Tuesday, 20 November 2007

Status Report

GMR Infra is currently trading at Rs 253. I recommended this stock when it was at Rs 176. This is an increase of almost 45% !!!

Sudarshan Sukhani is of the view that GMR Infrastructure has more headroom left compared to JP Associates. Sukhani told CNBC-TV18, "JP Associates is the better chart but GMR is a better buying opportunity as of now so because there is more headroom. I would feel GMR probably is now ready to breakout and do what JP Associates has already done."

Thursday, 15 November 2007

Edelweiss IPO subscribed nearly 6 times

The initial public offer (IPO) of brokerage firm Edelweiss Capital of Thursday got subscribed by nearly six times on the very first day of its issue.

The issue received bids for 4.87 crore shares as against 83.86 lakh shares on offer, latest data available on the Bombay Stock Exchange show.

The price band for the issue, which was subscribed 5.81 times, has been fixed between Rs 725-825 per share. The offer would close on November 20.

The issue got robust response from investors with Qualified Institutional Investors subscribing 8.39 times and the Non-Institutional investors subscribing 8.49 times.

The company is planing to raise about Rs 700 crore of which for Rs 378 crore would be utilised for strengthening operations of its unlisted securities arm Edelweiss Securities Ltd (ESL) and Rs 57 crore would be used in its own operations.

The company proposes to fix issue price on November 27 and the listing would take place in the second week of December.

Kotak Mahindra Capital, Citigroup and Lehman Brothers are the book running lead managers to the issue.

Source: Economic Times

Rocketing rentals: India’s 4 costliest markets in Delhi

At a whopping rental of Rs 950 per sq ft, Delhi’s Khan Market has emerged as the country’s most expensive retail location, far ahead of its pricey Mumbai counterparts. To top that, it is also the 16th most expensive shopping location in the world.

The top four expensive locations in India are Khan Market, Connaught Place, South Extension and Greater Kailash, according to a report — Main Streets Across the World — by global real estate consultancy firm Cushman and Wakefield. These are followed by Mumbai’s Linking Road, Kemps Corner and Colaba Causeway.

Khan Market, whose rentals have gone up by 35.7% from Rs 700 per sq ft per month in 2006 to Rs 950 in the quarter ended June 2007, became the 16th most expensive shopping location in the world — ahead of Tverskaya in Moscow and Wanfujing in Beijing. That’s a jump of eight places for the market that ranked 24th on the list in 2006. In India, it continues to be the most expensive market.


Delhi’s Khan Market, CP, South Ex and GK are the top 4 most expensive retail locations in India. Khan Market is now 16th costliest shopping location in the world in terms of rentals. CP, with 87.5% increase over last year, registered the highest rise in rentals anywhere in India.

Source: Economic Times

Stock Tips: Buy Bharti Airtel

Bharti Airtel looks like a good buy at current price. Short term target is around Rs 1000.

CMP: RS 900

Sunday, 11 November 2007

Bulls fail to stir some bluechips

The stock market is breathing octane these days. The Sensex has clocked new records as the indices attained new heights, but amidst the fireworks there still exist some losers — which remained untouched by the great euphoria witnessed in the Indian stock markets over the last 20 months.

Yes, you are right. We are talking about the laggards who remained bearish even as the bull raced ahead on Dalal Street from February 8, 2006 when Sensex for the first time touched 10K to October 29, 2007 when it touched the historic figure of 20K.

The majors from the BSE 100 which ended up gasping during the period include Hindustan Petroleum (HPCL, -23% ), Glaxosmithkline Pharmaceuticals (-19%), Hero Honda Motors (-16%), Cipla (-14%), Bharat Forge (-13%), Indian Oil Corporation (- 13%), Patni Computer Systems (-11%), Tata Tea (-3%) and Bharat Petroleum Corporation Limited (-2%).

Analysts believe that there isn’t just a singular justification for why they didn’t click when every other companies set the Sensex ablaze. But yes, they’ve been left far behind in the marathon rally at Dalal street. SundayET takes a snapshot of the top laggards during the great Indian stock run.

The following are some of the bluechip companies that didn’t get impacted by the bull run. Hindustan Petroleum Corporation: It is not surprising that HPCL figures at the top of the list, dipping by 23% in that time period. The petroleum sector has always been at the mercy of government policies, which is primarily the reason for its downfall.

“Ever since the disinvestment of these stocks backfired four years back, they were never part of the Sensex rally. Crude prices going over the roof didn’t help much either. The oil marketing companies are falling on the fundamentals too, which don’t look very rosy,” says Ashu Madan, national head, Religare, a broking company. Another reason for the underperformance was the lower subsidy provisioning.

Glaxosmithkline Pharmaceuticals: Next on the list comes Glaxosmithkline, which declined by 19% in the same period. Research analysts believe that the pharma sector has been traditionally lying low and its hey days are still to come. “Globally, the pharma sector has been underperforming. So, it doesn’t comes as a surprise that Glaxosmithkline hasn’t done well. Another reason for lagging behind is the strengthening rupee, since their profits are directly related to it,” says Shriram Iyer, head of research, Edelweiss Capital.

Source: Economic Times

Shares set to rise further in 2008: JPMorgan

Stock markets in India are expected to rise further next year but at a slower pace as high valuations and a fall in corporate profit growth limit gains, analysts at JPMorgan said. The Mumbai market's benchmark index is expected to rise to 22,500 points by the end of next year, up 16 per cent from Tuesday's close of 19,400.67.

The index has gained nearly 15 per cent in October, its biggest monthly gain in almost four years, taking its rise this year to 40 per cent. It had gained 47 per cent last year and 42 per cent in 2005.

Bharat Iyer, head of research at JPMorgan in India, said corporate profits, which had grown 25-30 a year for the past three years, would slow from a high base.

"You have challenges in the form of rupee appreciation, volatility in interest rates, etc. So you expect earnings growth to structurally slow down.

"It's still very attractive in absolute terms at 19-20 percent, but the fact of the matter is that you are coming down from 30 percent to 19-20 per cent, which is a step down."

He said infrastructure, engineering and construction and steel sectors were likely to perform well, while drug makers and telecoms were not expected to be as strong as they have been.

Source: Economic Times

Thursday, 8 November 2007

Re-enter IFCI

Both Sudarshan Sukhani and PN Vijay are of the opinion that this stock can be reentered at the current price for short term. I had given this recommendation when the price of this stock had fallen to Rs 77.

CMP: 83.60

Shiv-Vani Oil

Sharekhan has maintained a buy rating on Shiv-Vani Oil and Gas Exploration Services. They have given a target of Rs 480. This is an extract out of their report ."Shiv-Vani Oil & Gas Q3CY2007 results were ahead of our expectations. The order inflow was also healthy as the company has received orders of around Rs400 crore over the last three months and the order backlog has grown to over Rs 3,000 crore. The outlook for Q4 is encouraging with the commencement of the much-awaited Rs650-crore coal bed methane (CBM) project awarded by Oil & Natural Gas Corporation (ONGC). At the current market price the stock trades at 11.1x CY2008 and 8.7x CY2009 estimated earnings. We maintain our Buy call on the stock with a price target of Rs 480.”

CMP: Rs 380

Tuesday, 6 November 2007

Buy Reliance Petroleum

Reliance Petroleum is a good buy at this time. It has corrected a bit today and touched a low of Rs 205 today. You can buy this on declines with short term target of Rs 230-245. Keep a Stop loss of Rs 184.

CMP: 216

Status report: Neyveli Ligite

Neyveli Ligite touched an intra day high of Rs 180 today!! That is almost 35% increase from its recommended price of Rs 133. Congrats to those who bought this one!!!

BTW I am on my vacation and that’s the reason for infrequent posts :-)Will be back soon!!

Monday, 29 October 2007

Tata Teleservices

TTML looks like a good buy right now and can go upto 55-60. It moved smartly today and was up 9.83%.

CMP: 47.50.

Sunday, 21 October 2007

What is Short Selling?

What is short-selling?

Short-selling, in the context of the stock market, is the practice where an investor sells shares that he does not own at the time of selling them. He sells them in the hope that the price of those shares will decline, and he will profit by buying back those shares at a lower price. In India, there is no prohibition on short-selling by retail investors. Institutional investors —domestic mutual funds and foreign institutional investors registered with the Securities and Exchange Board of India (Sebi), banks and insurance companies — are prohibited from short-selling and are mandatorily required to settle on the basis of deliveries of securities owned and held by them.

How is short-selling beneficial?

Short-selling is considered an essential feature of the securities market not just for providing liquidity, but also for helping price corrections in over valued stocks. Supporters of short-selling claim its absence distort efficient price discovery, gives promoters the unfettered freedom to manipulate prices and favours manipulators than rational investors. Securities market regulators in most countries, and in particular, all developed securities markets, recognise short-selling as a legitimate investment activity. The International Organisation of Securities Commissions (IOSCO) has also reviewed short-selling and securities lending practices across markets and has recommended transparency of short-selling, rather than prohibit it.

Are there any drawbacks of short-selling?

Critics of short-selling feel selling, directly or indirectly, poses potential risks and can easily destabilise the market. They believe that short-selling can exacerbate declining trend in share prices, increase share price volatility, and force the price of individual stocks down to levels that might not otherwise be reached. They also argue that declining trend in the share prices of a company can even impact its fund raising capability and undermine the commercial confidence of the company. In a bear market in particular, short-selling can contribute to disorderly trading, give rise to heightened short-term price volatility and could be used in manipulative trading strategies.

Will institutional investors in India be allowed to short-sell securities?

Sebi is working on a proposal to introduce a stock borrowing and lending mechanism. This will allow institutional investors to short-sell by borrowing shares. Under this arrangement, an investor A, who feels that a certain stock is overpriced, borrows those shares for a charge from investor B, who is willing to lend those shares. Investor A then sells those shares in the market, hoping that the price declines so that he can buy cheap and return them to investor B.

What is the difference between covered short sales and naked short sales?

Covered short sales are those in which the seller arranges for the delivery of shares he has sold by borrowing them. Naked short sales are those in which the seller does not intend to provide for the delivery of shares he has sold. Most international securities market regulators have prohibited naked short-selling and require the client to have documentary evidence of borrowing/tie-up with lenders before executing the sale transaction. This is because naked short sales in huge quantities can destabilise the market.

How does the stock lending and borrowing mechanism function in other markets?

World over, securities lending and borrowing transactions are, by and large, over-the-counter (OTC) contractual obligations executed between lenders and borrowers. International securities market regulators do not directly regulate the lending and borrowing transactions. In many international markets, entities like custodians and depositories run the lending and borrowing scheme and have their own screens for meeting the demand and supply of securities from their clients.

Source: Economic Times

Bottomfish in this market?

Should you be lapping up good stocks at the current levels? Markets have corrected by almost 8% in the last 4 trading sessions. Most of the good stocks have been down between 10-20%. Should you then buy in the current market? Indiabulls Securities’ CEO Divyesh Shah says, “If you are holding a good stock in your portfolio, keep it. It is not advisable to bottomfish in these markets. From what we see now, volatility is so high, it wouldn’t take even five minutes to wipe out a sizeable portfolio. Maintain status quo would be my advice to clients,” Mr Shah added. I agree with this sentiment completely. Unless the FM gives some clarity on the P-Notes issue the uncertainty might continue with FII selling off majorly. But there is a strong argument against this as well. Since the fundamentals are still the same this is only a short term blip and investors can use this opportunity to pick up stocks from a long term perspective.

Saturday, 20 October 2007

Stocks plunge on economic fears

DOW has its biggest sell off of the year.

Udayan Mukherjee's Analysis of the P-Notes Issue

"The stock market reaction to the P-note draft is unambiguous. The Finance Minister may wish it away by ascribing it to rumours but all of us know the real reason for this selloff. Every investor fears that our market could be robbed of the big dollar trigger if this draft were to become law. The fears are not unfounded. While the regulator and the Finance Minister have been glibly proclaiming that P-notes have not been banned, the product has essentially been killed. Sure, small shuffles and marginal flows can happen but the P-note is history, if this draft were to come through.

The genesis of this whole move is the rupee. On that score the Finance ministry should have all our sympathy. The rupee is a problem for the country. At this rate it will kill many industries, render lakhs jobless and may have deep economic ramifications. No Finance minister can want that. Yet, this is an inevitable fallout of a rapidly growing economy. The solution cannot lie in controlling flows of global capital into the stock market. It starves the engine of growth and sends out the most regressive signal to the world. Even if it is done, as in this case, under the guise of seeking more transparency.

If it had to be done, the more elegant way of doing it would have been to decide a sunset period and allow P-note investors to register themselves during this period and transition. Instead, they are seeking to bring the product to a dead halt before forcing global funds to register. This is perhaps reflective of the desperation to cut flows now and stem the rupee's rise. The ministry is aware that India is very hot now and if the window is left open for another six months, the seasonally strong October to February period, the market could be inundated with flows. The dollar rupee could go for a toss, with it, exporters. So, the more reasonable expectation is that the draft becomes law, BUT with important modifications. Maybe the 40% of AUC clause is revisited, hedges allowed for P-note investors in stocks, relaxations made for IPO applications through P-notes etc. The sting needs to be taken out but even so the world of P-notes and hedge funds will perhaps never be the same again.

The trillion-dollar question is how the stock market digests this and moves on. Of course, that depends a lot on the final contours of the draft. If it is implemented in its current form we may have a difficult six-month period for the market. No new flows will come in through a window which accounted for over half of all FII flows and the constant threat of eventual and gradual unwinding will hang like a Damocles’ sword over the markets' head. Not conducive conditions for outperformance. This is a medium-term technical handicap which the market will get over but it may take a while. Technical constraints may restrain bull markets but don't generally alter their course altogether. We are still in a very strong bull market; make no mistake about that. The emerging market dream run has just begun; it is nowhere near peaking out. In such an environment, new highs will come again for our market. If this P-note business works out to a reasonable conclusion, then we will probably have it soon, if not we will have to wait till the technicals improve. This is not to undermine the importance of the current draft; it may deal us a structural technical blow for a few months, something which may even spark off a deeper correction and relative underperformance. Let’s hope the regulators will not push us beyond a point. Sense should prevail."

Source: Moneycontrol

Thursday, 18 October 2007

Stock Markets Today

Almost 1000 points down in a day!! As per a report investors have lost over Rs 2.7 trillion in the last 2 days!!! Almost all the major stocks have corrected in the range of 10-18% from their day's highs. This has mostly been on account of funds selling off on account of uncertainly on political front. Now we can only wait and watch and see what happens tomorrow. Let's hope for the best!

Stock Tip: Neyveli Lignite

This stock looks like a good long term bet. Ashwani Gujral has given a target of Rs 150 for this stock in the short term. Analyst Sudarshan Sukhani is also of the view that this stock should be accumulated on dips and should be kept for long term.

CMP: Rs 133

Stock Markets today

Markets are up today on account of heavy buying seen in sectors like Telecom, Capital goods, oil and gas, reality stocks etc. The markets have not only recovered yesterday’s losses but touched new highs today.

Tuesday, 16 October 2007

Investment pick: Punj Lloyd

I gave recommendation of Punj Lloyd on 10th of August when the CMP of this stock was around Rs 275. Currently the stock is trading at Rs 390 levels i.e. almost 42% return on investment in 2 months!!!

Now a number of analysts have given a buy rating to this stock including Mr Sudarshan Sukhani. India Infoline has also come out with a buy recommendation on this stock on 15th October.

Monday, 15 October 2007

Sensex at 19K: What to do now??

Who would have believed if somebody said that sensex would close at 19K 4 days ago. But that is exactly what has happened. Sensex closed above 19K today to close at 19058.67!! But what should people like you and me do at this point? Should we invest more in
stock markets at this point or sell or adopt a wait and watch policy. I think it is a good time to take a long and hard look at your portfolio. Stocks that have given you consistent returns need to seperated from the ones that have been rolling just in this bull market. Now the risks are a lot higher so you need to careful and not over invest. I think profit booking to some extent, atleast the trading bets, would be a good idea. Who said stock trading or investment was easy?

Sunday, 14 October 2007

Friday, 12 October 2007

Stock Tips: Infosys

I think you can buy Infosys at the current levels (CMP Rs 1929) for a target of Rs 2250-2350. This stock is a good investment option at the current price.


Mastek was up almost 25% on the news of board approving the buyback of shares from the open market. The maximum buyback price would be Rs 750. Currently the share is trading at Rs 380. I had given this tip when the share was trading at Rs 291. More than 30% profit in 15 days for those who had invested in this stock.

Thursday, 11 October 2007

Sharekhan Recommendations

Sharekhan has given buy ratings on the following stocks

SBI with a target of Rs 2282. CMP is Rs 1944
Sun Pharma with a target rating of Rs 1287. CMP is Rs 969

Idea Cellular

I had given recommendation for Idea cellular when it was trading at Rs129. The CMP of this stock is Rs 143. Today Rajesh Jain of SMC Global securities and Mehraboon Irani of Darashaw & Company have given a target of Rs 155-160. The general advice is to remain invested in this stock from a long term perspective.

Bad day for IT

Infosys results for this quarter have generally disappointed the markets resulting in a bad day for IT stocks in general. Infosys crashed by almost 7% today and closed at Rs 1976. Satyam lost about 8.5 % today and closed at Rs 448. All the sectors were up today except for IT. The major factor contributing towards this downfall is obviously the rising rupee. In this calendar year rupee has appreciated by almost 11%. Considering that you can imagine the kind of impact it will have on the IT Company’s financial numbers. Infosys alone has lost almost Rs 2000 cr because of this appreciation.

Wednesday, 10 October 2007


Some market experts have given a target of Rs 2300 for Infosys. What becomes of this stock in the short term will become clear tomorrow when Infosys comes out with its quarterly results. Technology sector is looking quite positive in general, more so becase almost all of them had hit their 52 week lows. I personally like Satyam quite a lot. It has risen quite smartly from almost Rs 300 levels a few days back to Rs 370 today. BTW, I had given a tip for Satyam ... :-)

Reliance Petroleum

Anil Manghnani hold the view that Reliance Petroleum can touch Rs 189 if it goes above Rs 176. This does not come as a surprise to me considering the pace at which Reliance stocks have been moving in the very recent past. Reliance Energy touched its 52 week high again (no surprise there again!) at Rs 1624 on reports that its subsidiary Reliance Energy Transmission has bagged a project worth Rs 2000 cr. Anybody investing in stock market should at least have one Reliance stock in their portfolio otherwise its not worth it!!

Stock Tips: 3i Infotech

Stock market trading tip: 3i Infotech is a very good stock investment option in the mid-cap IT space. They have very good growth prospects. The financial year 2008 guidance is at Rs 1000-1100 cr in revenues which means 53-68% yoy growth and profits of Rs 145-155 cr i.e 39-48% yoy growth.

Tuesday, 9 October 2007

Air India IPO

Air India is reported to be coming out with an IPO to offload 15% of its stake after completion of its merger with Indian Airlines. The parent company will be called National Aviation Company of India Ltd (NACIL).

World’s Richest

The combined wealth of Mukesh and Anil Ambani is about $ 91 billion, making them the richest in the world, as reported by Economic Times. They have taken over the Walton family, who controls 39% stake in Wal-Mart and is valued at about $71 billion. And all this is thanks to the booming stock markets of India.

Yatra Online IPO

Yatra Online, the online travel services company may file for an IPO next year.


Ashwani Gujral has given a target of Rs2750 for Reliance. All Reliance stocks are currently touching their 52 week highs!! He also thinks that Reliance Energy can touch 1600-1650

Sensex above 18K!!!

Today was a historic day for India stock markets where the Sensex closed for the very first time above 18K mark. Bulls were not marred at all by the political uncertainty making one of the biggest intra day gains. It took market a total of 8 days to move from 17K to 18K.

Power Grid Corporation

As per S P Tulsian, Power Grid can touch Rs 115-120. He is quite bullish on this stock. As per him this is a good investment stock and puts it in the league of NTPC and IDFC which can give you a 20-25% returns very year.

Monday, 8 October 2007

Official Apple iPhone Commercial - How To

I Just like this phone :-)

Consolidated Construction IPO (CCCL IPO) Allotment Status

You can check CCCL IPO allotment status here here

Koutons Retail IPO Allotment status

You can check your application status here


CMP: Rs 77. This is a good price to buy this stock. This stock has fallen almost 25% from its peak of Rs 105 in the last few days. Once the news of bid formalises I think this will again be in the front liners.


Satyam has been doing well since last 3-4 trading sessions. It has gone up by almost 7-8% in that period.

Anil Padia is of the view that from the current levels it has a target of Rs 520 if it crosses Rs 460 and maintains that for at least a couple of days.

Opportunity to buy stocks?

Is this an opportunity to buy stocks 5-10% cheaper? Yes, as per Market expert Gul Teckchandani. He says "Do not stay off because people like us will use this volatility to our advantage. A lot of people have been saying that this is because of the political environment. But then you have to also explain why in the morning the market was up about 200 points. I think the momentum counters are taking a hit. You have to select where you want to be invested, hunt for your own companies, and use this kind of a downslide where you are getting stocks on an average between 5-10% cheaper, if you believe in the companies," he added.

Anil Padia, Director, Kedia Shares & Stock Brokers, feels investors should use this correction to buy. "Since we are in such a big strong bull market, I am not expecting the markets to correct much although it may come down to 16,650 and that would be a good level to buy. The markets could remain in a 16,650 to 18,000 range this month," he added.

IT stocks

Heavy selling has been witnessed across the board today but IT stocks seem to be doing well. Satyam gained 2.62 % today, TCS was up 2.04%. iGate solutions was a star performer today. It touched a high of Rs 273, up almost 9% today. Technical Analyst, Vijay Bhambwani is of the view that IT stocks are likely to move up from the current levels.

Markets today

Sensex was down today majorly on account of political uncertainly with the ruling party hinting at mid-term elections. About 561 shares have advanced, 2435 shares declined and 45 shares have remained unchanged. Metals, banks and reality stocks have been hard hit. At one point market was down nearly 400 points or over 2%.


It was another bad day for IFCI. It lost almost 9% today. It has gone done my about 20% in the last few trading sessions. Many analysts still hold the view that IFCI is a good long term buy.

Sunday, 7 October 2007

Stock Investment: KS Oils

KS Oils at the CMP of Rs 72.50 is a very good investment option. The recommendation has been given by Mr. Deven Choksey. His advice has been based on the company's future growth potential, both organic and inorganic, change in business practices and strategies and on future business plans.

Stock Market Trading Tip

E Mathew has given the following short term targets for GMR Infra and Cairn India

GMR Infra: Target of Rs 230 with a stop loss of Rs 170. CMP Rs 173.

Cairn India: Target of Rs 202 with a stop loss of Rs 175. CMP: Rs 180.

Saturday, 6 October 2007


Birlasoft, the software division of the C K Birla group, is planning to come up with its IPO mid next year.

Birlasoft used to be higly dependent on GE for its business which was about 80% 2 years ago of its total revenue. Currently it is about 48%.

Oil India IPO in offing

Oil India is planning to come out with an IPO early next year in January-Feburary to raise upto Rs 2000 crore by off-loading 10%

Sops for Exporters

Government has announced relief measures for exporters who have been hit hard by the appreciating rupee including refund of service tax on three additional services, provision to pay interest on exchange earners foreign currency accounts (EEFC) and an additional Rs 300 crore for Vishesh Krishi and Gram Udyog Yojana.

Rekindled optimism

A very positive employment report pushes US stocks up. US employers added 110,000 new jobs last month.

Friday, 5 October 2007


Larsen and Toubro (L&T), the largest engineering company in India has floated a new arm, L&T Power Projects (L&T PPL)

L&T Power Projects (L&T PPL), a new venture of Larsen and Toubro (L&T), the largest engineering company in India was launched recently. This allows them to foray into the booming Power generation business. This is a JV between L&T PPL and Japanese electrical giant Toshiba shortly for setting up a turbine manufacturing facility.

L&T closed at Rs3090 today which about 6.7% higher from yesterday’s closing price.

Market review

Ashwani Gujral is of the view that there will be no deep correction in the markets. This is a “pause” and markets are moving in a range. Each dip in the market is couple with aggressive buying. So there is nothing to suggest that markets are heading for heavy corrections.


IFCI has corrected quite a bit in the last few trading sessions and i think 90 and below is a very good price to enter this stock.

CMP: 88.65

Power Grid: Good stock for Long term

PN Vijay, Portfolio Manager believes that Power Grid is a good stock for long term investors. Even at the current price of over Rs 100 he recommends a hold.

Listing of Power Grid Corporation

As I had said before that Power grid was expected to list around Rs 80 and above, it opened today at Rs 85!!! Currently it is quoting at about Rs 104.95.

Power Grid Corp. handles about 45% of power generation in India, making it the largest central transmission utility.

Thursday, 4 October 2007


Ashwani Gujral has given a buy tip for this stock today. He has recommended a target of Rs 625 with a stop loss of Rs 490.

There has been a block deal of this stock on BSE - 10 lakh shares at Rs 578 per share. It is currently quoting at Rs 557.95, 3.11% higher than yesterday's closing price. It had jumped by about 6.5% in yesterday's rally.

Suzlon Energy

Suzlon Energy is quoting at its 52-week high of Rs 1636 right now at 13:19. This is on account of the news yesterday which was reported on this blog.

New Fund Offer (NFO)

Tata Indo Global Infrastructure Fund - a NFO from the house of Tatas is open for subscription. It is a 3 years close ended equity scheme, which will be converted to open-ended scheme after maturity. This looks like a good investment option as the currently running Tata Infrastructure fund is doing pretty well and they have experience in this sector.

The offer closes on 16th October 2007.

Wednesday, 3 October 2007


Ashwani Gujral is of the view that one should buy IFCI on dips. He has given support levels of Rs 85-88 and target of Rs 120.

IFCI closed today at Rs 96.35, down by almost 4%.

Suzlon Energy

Suzlon Energy has bagged a 150MW order from DLF. The stock was up 3% today on account of this news and closed at Rs 1548.

Reliance Power IPO

Reliance Power IPO

Reliance Energy has finally filed the DRHP (Draft Red herring Prospectus) for Reliance Power’s IPO with SEBI.

Ashwani Gujral on DLF

Ashwani Gujral holds the view that DLF might hit the 4-figure mark soon. This has been the strongest stock in its category. With interest rates softening reality sector can lead the rally!!

Markets Today

Today has been quite a dramatic day for the markets. Markets opened on highly positive note and almost touched 18K levels and then suddenly nose dived, going below 17200 levels. It then peaked again and finally closed at 17873.41. Sensex is surely heading towards 18K but with huge amounts of volatility. Next few days are certainly going to be very interesting!!!


Mastek touched day high of 325 today, up Rs 31 i.e. 10% from its yesterday's closing price.

Tuesday, 2 October 2007

Stock Tips: Buy Mastek

Mastek Ltd is in the process of a major restructuring exercise. This is in order to bring their costs in control and, if all their plans fit together, is due to take off in a big way. I think this is a good time to invest in this stock.

CMP: 291

Apply for Maytas Infra IPO??

The general view is that this issue is expensive. As per S P Tulsian, it is better to avoid this IPO. But experts also agree that it is a good bet for long term investment. So don’t expect fireworks on listing!!

Power Grid Corporation

BSE Script Code: 532898

IPO Listing Date: Friday, October 5, 2007
Issue Price: Rs 52/-

This is expected to list around 75-80 and above.

Monday, 1 October 2007

Chennai gearing for one of its biggest land deal

Stocks dip at quarter's end

Watch this video on how US stocks and economy is doing.

Telecom Licences

It seems to be a boom time for Telecom!! Omaxe, Hinduja TMT and HTMT have all applied for a telecom licence for all the 22 circles.

Reliance Energy

Price of this share has increased by almost 18% in the last two trading sessions. This has mostly been on account of the upcoming IPO news of Reliance Power, a 51% subsidary of Relaince Enenrgy.

Hotel Leela

Ashish Kapoor, CEO of Investshoppe has given a target of Rs 75 for Hotel Leela Venture. I gave this recommendation when the price of this share was Rs 44.

CMP: 51.70

Reliance Natural

Ashwani Gujral has given a buy recommendation on RNRL for a target of Rs 135. Stop loss Rs 75.

CMP: 93.70


Sharekhan has maintained its BUY rating on Marico. They have given a target of Rs70.

CMP: 60.90

Sunday, 30 September 2007

Reliance Energy

The news of upcoming IPO of Reliance Power, a 51% subsidary of Reliance Energy has sparked a new interest in this stock. The stock was up 7.9% on Friday and closed at 1205.50. Sudarshan Sukhani is still bullish on this stock from Investment perspective and suggests a target of Rs 2500 for long term investors.

Infosys Technologies

CLSA has maintained its BUY rating on Infosys technologies. The stock price of Infosys had a good day after the news and closed 5% higer.

Friday, 28 September 2007

Arvind Mills

Technical Analyst, Sudarshan Sukhani holds the view that Arvind Mills can be accumulated on dips. He thinks that it has had a breakout from its range and is on definite upward tread. This is a good opportunity to buy.

CMP: 61.90

Reliance Power

It is speculated that Reliance power is going to raise around $2.5-3 billion through IPO. Reliance Power is a 51% Subsidiary of Reliance Energy.

Stock Tip: Kesoram Industires

Kesoram Industries is looking quite good with a target of Rs 680-700. Keep a stop loss of Rs 515-520

CMP: Rs 578

Thursday, 27 September 2007


Ashwani Gujral holds the view that Unitech may consolidate in the short term but should go back to about Rs 400.

CMP: 314.25


As per Technical Analyst Sudarshan Sukhani, one should book profits in Reliance Petroleum and Reliance Natural Resources

Markets today

SENSEX finally closed above the 17K mark today. Technology and Metal stocks were the start performers today. Infosys was up 5% today, while Sterlite Ind was up by 9%. Reliance Petro was among the major losers today.

Technical Analysts Ashwani Gujral is of the view that the long term fundamentals are still positive but the markets may consolidate in the near future.

Stock Tip: Omaxe

Omaxe looks like a good buying opportunity at this point. Keep a stop loss of 325-330 for a target of 45-455

CMP: 339.10

Tech Stocks

Frontline technology stocks have been doing well since the last two trading sessions. If you also compare their prices most of them were very close to their 52 week lows. This could be a good opportunity to buy frontline stocks.

Broker recommendation: ITC

Sharekhan is still quite bullish on ITC. They have maintained a buy recommendation on ITC with a target of Rs 200.

Wednesday, 26 September 2007


IFCI is still very positive. Wait for correction and buy IFCI on dips.

CMP: 97.85

Nagarjuna Construction

Nagarjuna Construction has bagged 3 new orders work Rs 243 crores, which includes consruction of "Embassay of India complex" at Kathmandu.

Block Deal

50 lakh TTML shares changed hands today on NSE and BSE over a number of deals.

Stock News

- Tata Sons has acquired 14.68% stake in Praj Industries worth Rs 338.24 crore.

- Videocon is about to foray into the domestic mobile telephony business. They have applied for licences in all 22 telecom circles in the country.

Tata Teleservices

Tata Teleservices gained smartly today. It closed at 43.55 which is 7.00% higher than yesterday. I gave this recommendation when the price of this stock was 28.40. A cool 53% increase!!!

IPO News: Supreme Infrastructure India

Supreme Infrastructure India (SIIL) has been oversubscribed by almost 3 times on the third day of its issue. The offer will close on September 26th. The feedback for this has mostly been positive and investors can subscribe for listing gains as well as for investment.

Stock Markets today

Markets ended relatively flat today after a rather dramatic day!! SENSEX touched 17000 mark but closed at 16921.39, 21.85 points up from yesterday. It took 6 days for SENSEX to reach 17K from 16K!!

Although Technology shares have being lagging behind for quite some time now but they were the major propellers today. Satyam gained 4.81% while Wipro closed 4.33% higher than yesterday. Banking shares also had a relatively good day today.

Stock idea: Idea Cellular

Idea cellular looks like a good buy from a long term perspective.

CMP: 129.70

Hot Stock: GMR Infra

You can buy GMR Infrastructure with a stop loss of 760-770 for a target of 990-1015.

CMP: 855

Tuesday, 25 September 2007

Ashwani Gujral's Views

Ashwani Gujral has given a buy recommendation for Oswal Chemical with a stop loss of Rs 40 for a target of Rs 62.

I had given this call when it was 36.15 :-)

CMP: 50.40

Monday, 24 September 2007


RNRL was up 21% again today and closed at 93.60!! NSE posted record turnover today thanks to anything named Reliance!!!

Rate cut

HDFC has cut the floating home loan rates by 0.5%, FIxed home loan however remains at 13.25%.

Stock Tips: Unitech

Unitech has the momentum to touch Rs 400 levels.

CMP: Rs 350.25

Friday, 21 September 2007

Buzzing stocks: Reliance

RNRL soared by almost 38% on friday on reports of Anil Ambani group having applied for a licence to foray into gas distribution business. It touched Rs 76.60, up almost 35% on BSE. Over the last one week it has gained almost 50%!!

Stock Tips: Cairn India

Cairn India is looking very positive and may touch 200

CMP: 178

Thursday, 20 September 2007

Good news for Rupee...

Rupee finally breached the psychological mork of 40 to touch 39.85 against the dollar, a nine year high!!! It closed today at 39.89. Rupee a better bet than the stock markets then??

IPO News

CCCL and Koutons have been subscribed almost 4 times their size on the third day of the issue.

Tuesday, 18 September 2007

Koutons Retail IPO: Subscribe

Investors can subscribe to the Koutons Retail IPO for listing as well as long term gains.

Saturday, 15 September 2007

Stock Tips : Buy Aptech

Aptech is looking quite positive with a long term target of 490-500

CMP: 374.35

Wednesday, 12 September 2007

Stock Tips: CEAT

Buy CEAT for a target of 225-235

CMP: 184

Monday, 10 September 2007

Stock Tips: Everest Kanto

Everest Kanto is looking good for a target of 285-300

CMP: 233.10

Saturday, 8 September 2007

Stock Tip: Buy Hotel Leela

Hotel Leela has prospects to touch 70-75 in the next 6-12 months

CMP: 44.95

Stock Tip: Buy Praj Industries

Praj Industries is a good investment option

CMP: 216.10

Wednesday, 5 September 2007

Mysore Cements

This stock has shown steady performace and has good prospects in future.

CMP: 55.15

Tuesday, 4 September 2007

Kernex Microsystems

Kernex microsystems is rumoured to have bagged a Rs 2000 order from Railways. Stock is locked at 5% upper circuit since the last 2 days.

Monday, 3 September 2007

Stocks to Buy

TTML and IDBI are good buys right now

Thursday, 30 August 2007

Stock Tips: GMR Infra

GMR Infra still has some upside left.

Tuesday, 28 August 2007

Tata Teleservices

Tata teleservices looks like a good buy at this point

Thursday, 23 August 2007

Buy Sujana Metal

Sujana Metal

This is a good buy at the current levels for a target of 40-45.

CMP: 33.50
Stop loss - 26-29

Tuesday, 21 August 2007

DCM Shriram

DCM Shriram Consolidated is a fundamentally strong company with very good return prospects at the current levels.

CMP: 75.20

Sunday, 19 August 2007


IFCI looks like a good buy

CMP: 64.35
Target: 80-85
Stop Loss: 57-60

Friday, 17 August 2007



Torrent is going pretty strong and has a target of 95-100.

CMP: 82.40

Thursday, 16 August 2007


KERNEX MICROSYSTEMS was locked today as well at 5% upper circuit. CMP is 312.

Markets today

The US Subprime problem has caused tremors across the globe. This obviously had impact on the Indian markets as well which saw its single biggest fall since 18th May 2006. But this is seen by many analysts as healthy correction and a good buying opportunity. Nifty closed at 4178 points down 191 points while SENSEX closed at 14358 points, down 642 points. Metals was the sector that took the maximum beating.

Tuesday, 14 August 2007

Stock News

KERNEX MICROSYSTEMS is locked at upper circuit of 5% today. CMP is 296.95

IPO News

Omnitech Info IPO has done pretty well on its first day of listing. It listed today at Rs 183.75, which is at about 75% premium against its issue price of Rs 105.


Gayatri Projects

CMP: 287
Stop loss: 271-275
Target: 355-360

Monday, 13 August 2007

Trading call

RNRL has a target of 57-60.

CMP: 47.20
Stop loss: 40-42

Investment advice

Oswal Chemicals and fertilizers

CMP: 36.15

This is a good investment option.

Stock tips

Buy Valecha Engineering

CMP: 280.80
Stop loss: 250-255
Target: 320-325

Saturday, 11 August 2007

Low cost Airlines dying an early death?

Jet and Kingfisher are set to increase their fares by about 10%. With kingfisher already a substantial shareholder of Air Deccan the future of cheap air travel is in limbo. The blame will be squarely laid on the rising oil prices which to a certain extent is responsible but shouldn't the airlines be more innovative in keeping the costs down rather than simply transferring it straight to the consumers?

Markets - 10/08/2007

Friday was bad for markets worldwide. At one point Sensex was down by nearly 500 points but recovered later during the day thanks to IT stocks. It was one of the few sectors that ended positive on Friday, the biggest loser being Reality stocks.

Sensex 14868.25 -231.90
NIFTY 4333.35 -69.85

Friday, 10 August 2007

Punj Lloyd

CMP: 275/-
Target: 470-490

This is a long term investment advice.

Ashwani's Gujral's views

Here’s how Ashwani Gujral views the stocks on board:

On IFCI, Orbit and RNRL:

It is just brave buying. People are hoping against hope that the bottom has been formed and they are trying to get into those stronger stocks. But all this buying will go away once more selling comes in on spikes. Unless we can sustain 4,530, there is no sense buying a lot in this market.

United Phosphorous

Merrill Lynch has put a buy rating on United Phosphorous

CMP: 323
Target: 410


Kotak Equities has maintained buy rating on Wipro. But they have also reduced the target to 560 from 610.


In the short-term sensex has strong support at 14700 (according to P-Sec Market Preview report)

Thursday, 9 August 2007

Tech Stocks

Tech stocks had a good day yesterday where they were the frontunners in the rally. The ECB curb to control the appreciating rupee is good news for IT companies in general but a lot of experts are still skeptical. They have been underperformers for quite some time now and this sudden rally seems like a relief-rally. Things should get more clear when the rupee starts to stabalize.

Trading Tip:

JaiprakashHydro looks like a good buy at CMT of 45. Target is 57-60. Keep a stop loss of 40

Trading tip:

Gayatri Projects is a good buy at CMP of 305 for a target of 350-355. Keep a stop loss of 280-285

Wednesday, 8 August 2007

More tips ...

Buy Satyam
CMP - 479.30
stop loss - 455
Target - 500-511

Buy Sujan Metal
CMP - 34.60
stop loss - 28
Target - 65-70

IPO of Simplex Projects

Hindu BusinessLine Recommendation is to avoid this one!

IPO of Everonn Systems

Hindu Business Line recommends Investment at cutoff

NIIT Technologies

IDBI has given a buy rating

CMP: 460.40/-

Buy given on Andhra Bank

Target of 146 given by Karvy

Buy recommendation on IVRCL

Traget of 460 by FinQuest Securities

Buy Wipro

Target of 648 given by Sharekhan

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.