| FAVOURING BULLS | | | | Liquidity on account of the recent profit booking | | | FAVOURING BEARS | | | | Uncertainty before the Budget and Weak global markets | | | | | | | STOCKS TO LOOKOUT FOR | | | | Sanwaria Agro Oils Ltd (Rs.49.50, Buy) will acquire two solvent extraction plants that will double its capacity to 2000MT and will boost its bottom line.
| | | Garnet Construction Ltd (Rs.71.85, Buy) has signed a first-of-its-kind global marketing alliance with the Dubai based Sternon Group to globally market its projects. | | |
| MARKET - WHAT TO EXPECT? |
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The Sensex witnessed yet another day of lack lustre trade on back of sustained selling by operators ahead of the expiry of February futures. Investors opted to unwind their positions pulling the Sensex by 65 points. The Sensex opened weak at 14,199.07 to touch intraday high and low of 14,312.88 and 14,157.72 respectively before settling at 14,188.49. Global markets gave no cues with the Asian markets remaining mixed today. The Bank of Japan (BoJ) raised its key short-term interest rate from 0.25 percent to 0.5 percent. Japan''s economy has recorded stronger-than-expected growth during October-December 2006. Wild intraday gyrations have made mid-cap stocks too risky. Short covering in heavyweights might pace up the index. However, we expect nervousness on account of volatility associated with the F & O expiry.
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| US MARKET |
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| The US markets dipped as the latest inflation report ended hopes of lower interest rates in the near term. The market got a jolt when the 0.2 percent rise in consumer prices in January exceeded most analysts'' estimates. The Dow Jones Industrial Average closed at 12738.41 down by 0.38 percent or 48.23 points. |
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| MARKET PERFORMANCE |
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| Index | Country | Current Value | Change | Change
(in %) | | Indian Market | | Sensex | India | 14188.49 | (64.89) | (0.46) | | Nifty | India | 4096.20 | (10.75) | (0.26) | | US Markets | | Dow Jones Industrial Average | America | 12738.41 | (48.23) | (0.38) | | Nasdaq Composite | America | 2518.42 | 5.38 | 0.21 | | Nasdaq 100 | America | 1839.13 | 5.42 | 0.30 | | S & P 500 | America | 1457.63 | (2.05) | (0.14) | | European Markets | | CAC 40 | France | 5694.56 | (18.89) | (0.33) | | DAX | Germany | 6941.66 | (41.25) | (0.59) | | FTSE 100 | United Kingdom | 6357.10 | (55.20) | (0.86) | | Asian Markets | | Jakarta Composite | Indonesia | 1816.57 | 10.08 | 0.56 | | Nikkei 225 | Japan | 17913.21 | (25.91) | (0.14) | | Straits Times | Singapore | 3293.61 | 56.68 | 1.75 | | KOSPI | South Korea | 1451.38 | (1.58) | (0.11) | | Taiwan Weighted | Taiwan | 7809.45 | 0.00 | 0.00 | | SET Composite | Thailand | 692.38 | 1.71 | 0.25 | |
| Source: Bloomberg |
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| Market | Advances | Advance % to Total | Declines | Decline % to Total | Unchanged | Unchanged % to Total | Total | | BSE | 1079 | 40.8 | 1514 | 57.2 | 54 | 2.0 | 2647 | | NSE | 424 | 40.8 | 588 | 56.6 | 26 | 2.5 | 1038 | |
| Source: BSE & NSE |
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| FII Investment
(In Rs. Crore) | Gross Purchases | Gross Sales | Net Investment | | 21-Feb-07 | 2,091.5 | 2,289.1 | (197.7) | |
| Source: NSE |
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| Indian ADRs Company | ADR Price
(US $)
| Change (In %) | Issue Price (US $) | | DR REDDY (RDY) | 16.95 | (1.8) | 10.00 | | HDFC BANK (HDB) | 71.53 | (0.7) | 13.80 | | ICICI BANK (IBN) | 45.32 | 1.7 | 11.00 | | INFOSYS TECH. (INFY) | 119.62 | (1.1) | 17.00 | | MTNL (MTE) | 6.41 | (1.7) | 7.50 | | PATNI COMPUTERS (PTI) | 22.91 | 1.0 | 20.30 | | REDIFF.COM (REDF) | 19.50 | (0.1) | 12.00 | | SATYAM COMP (SAY) | 46.62 | (1.0) | 9.70 | | SATYAM INFOWAY (SIFY) | 9.41 | 0.0 | 4.50 | | TATA MOTORS (TTM) | 19.74 | 0.2 | 8.70 | | VSNL (VSL) | 19.21 | 0.1 | 17.90 | | WIPRO (WIT) | 18.25 | (0.4) | 41.20 | |
| Source: Nasdaq |
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| NEWS |
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| • | Yokogawa India Ltd’s delisting offer of 8.10 lakh equity shares has been accepted by parent company, Yokogawa Electric Corporation, Japan. Yokogawa Electric Corporation will acquire the shares at a price of up to Rs.478 per share.
| | • | Syschem India Ltd (Rs.2.06) has plans for expansion that involve an investment of $12-15 million spread over the next two years. The company had recently announced plans to enter the pharma business with its own active pharmaceutical ingredients. The existing manufacturing and R&D facilities will be upgraded at an investment of $5 million for launching new molecules. A new facility will also be put up for capacity expansion and launching four new molecules at an investment of $8-$10 million.
| | • | Sanwaria Agro Oils Ltd (Rs.49.50) has planed to acquire two solvent Extraction Plants in Madhya Pradesh at a cost of Rs.15 Crore. The Market for refined Soyabean oil in India is estimated to be worth Rs.7500 crore. The acquisitions and further investment will double the Company''s capacity 2000MT.
| | • | Vipul Ltd’s (Rs.2546) board of directors have authorised the company to raise as much as Rs.351 crore through issue of equity to foreign institutional investors, on a preferential basis.
| | • | Nucleus Software Exports Ltd (Rs.1037.95) has bagged an order from Dubai Islamic Bank for its flagship product ''FinnOne'' for retail operations. With this order, the company has forayed into the Islamic banking industry space. The product will be implemented across 40 branches. | |
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| BOARD MEETINGS |
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| Scrip Name | Meeting Date | Purpose | | Core Projects & Technologies Ltd | 22-Feb-2007 | Miscellaneous | | Database Finance Ltd | 22-Feb-2007 | Results | | Wockhardt Ltd | 22-Feb-2007 | Results | | Krebs Biochemicals & Industries Ltd | 22-Feb-2007 | Miscellaneous | |
| Source: BSE |
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| DERIVATIVES |
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The Nifty February futures were at a premium of 4.90 points at 4,101.10 over the spot closing of 4,096.20 before the expiry of the contracts today. The March futures are trading at a marginal discount of 2.75 pints over yesterday’s spot closing.
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| Nifty Futures as on 21-Feb-2007 | | Expiry Date | High Price | Low Price | Prev Close | Close | Number of contracts traded | Turnover
(In Rs. crores) | | 22-Feb-07 | 4152.80 | 4096.00 | 4108.85 | 4108.85 | 261,993 | 10,800 | | 29-Mar-07 | 4149.00 | 4090.00 | 4100.70 | 4100.70 | 120,045 | 4,942 | | 26-Apr-07 | 4150.00 | 4095.00 | 4101.55 | 4101.55 | 956 | 39 | |
| Source: NSE |
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| TRADE STATISTICS FOR 21-Feb-2007 | | Product | No. of contracts | Turnover
(In Crores)* | | Index Futures | 383,753 | 15,821 | | Stock Futures | 692,126 | 25,694 | | Index Options | 139,692 | 5,800 | | Stock Options | 21,278 | 837 | | Interest Futures | 0 | 0 | | F&O Total | 1,236,849 | 48,153 | | *Notional Turnover in case of options | |
| Source: NSE |
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| FII DERIVATIVES STATISTICS FOR 21-Feb-2007 | | Product | Net Investment
(In Crores) | Open Interest
(In Crores) | | Index Futures | (385) | 13,153 | | Index Options | (16) | 8,044 | | Stock Futures | (175) | 18,565 | | Stock Options | (4) | 54 | | Total | (581) | 39,816 | | *Notional Turnover in case of options | |
| Source: NSE |
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RESULTS
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| Sr.
No | Company Name | Scrip
Code | Net Sales (Rs in Crore) | PAT(Rs in Crore) | | Q3FY
O7 | Q3FY
06 | Change
% | Q3FY
O7 | Q3FY
06 | Change
% | | 1 | SKF India Ltd | 500472 | 379.26 | 249.10 | 52.3 | 31.73 | 14.32 | 121.6 | | 2 | Blue Dart Express Ltd | 526612 | 182.20 | 148.50 | 22.7 | 12.20 | 15.40 | (20.8) | | 3 | KRONE Communications Ltd | 523411 | 24.22 | 19.60 | 23.6 | 0.67 | 2.36 | (71.6) | | NA = Not Applicable | | | Source – BSE & CMIE | |
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| TECHNICAL ANALYSIS |
| Volatility and weak market breadth continued to dominate yesterday’s proceedings. We expect volatility to continue as the February contracts expire. The Sensex should see support at 14,126 on the downside, while it could face resistance at 14,281.67 on the upside.
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| Note The above recommendations are valid only for the day and have no correlation to our medium/long term perspective. Disclaimer: This report is prepared exclusively for Reliance Money by SAANS. The information and opinions contained in the document have been compiled from sources believed to be reliable. SAANS does not warrant its accuracy, completeness and correctness. Use of data and information contained in this report is at your own risk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any securities. SAANS and its affiliates and/or their officers, directors and employees may have positions in any companies/shares mentioned in this document (or in any related investment) and may from time to time add to or dispose of any such companies/shares (or investment).
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| Reliance Disclaimer |
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