Wednesday, March 5, 2008

NOT MUCH DOWNSIDE RECOVERY

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Indian Markets yet again proved to be the weakest among the Emerging markets and most importantly the Asian pack. Sensex tumbled to a 5 month low yesterday after a private TV channel tried to expose the subprime link of ICICI Bank, which the bank later denied. However ICICI Bank and its overseas banking subsidiaries have an aggregate exposure of USD 2.2 billion in credit derivatives.As of January 31, 2008, the mark-to-market negative on this portfolio due to movement of credit spreads was about US$ 155 million. The current declines should be used by long term investors to buy the stock. With ICICI Securities IPO coming up and demerger of many of the subsidaries will unlock the value in the stock.

Tata Motors is setting ambitious targets for Nano. The company is looking aggressively to export Nano to US and European markets. The stock is likely to outperform the market in the coming years on exports.

SEBI will meet today under the chairmanship of Mr.CB Bhave. SEBI is likely to slash all regulatory charges and approve realty Mutual Funds. FM remarked on Tuesday that FII's are not behind the recent market crash and there was no proposal to ban them.

It is high time for a bounce in the Indian Markets but technically we have no supports in place till 15,880 levels. Stay away from the markets till normalcy returns. There will not be any run away rallies this time

Stock in news - PNB, IRB Infra, Essar Oil, Deccan Aviation, Tata Communications, Hindalco and many more stocks hit the headlines today.

Tata Motors is looking out for the possibility of global licencing Nano.

Reports suggest Hindalco Industries has raised aluminium prices by Rs 5,000 a tonne on rising global aluminium prices.

Essar Oil has bagged an offshore gas block in Vietnam's prolific Song Hong basin. The company also plans to invest $60 million in hydrocarbon prospecting.

Arun Jain, CEO of Polaris in an interview with NewsWire18 acknowledged that banks in the US east coast are holding back projects aftermath subprime.

Tata Communications(VSNL) is planning to invest $500 million in Wimax.

BS reports that Vijay Mallya is planning to dilute 15-20 per cent of his 76 per cent holding in the merged airline (Kingfisher-Deccan).

IRB Infra was awarded the maintenance and operating contract of the entire road infrastructure in Kolhapur city, Maharashtra.

ET reports that Punjab National Bank is planning to sell a 26% stake in its primary dealership subsidiary, PNB Gilts.


The following notable stocks created nightmares for the investors in the last one week.


Stock Name Percent Lost Current Price (Rs.)
Suzlon Energy 23.5 240.25
Reliance Capital 22.3 1,521.20
Global Broadcast 22.3 170.45
Adlabs Films 21.1 709.15
Bombay Rayon 19.2 269.40
First Source 19.1 43.75
DLF Limited 18.9 676.45
India Infoline 18.9 909.95
Kotak Bank 18.6 685.95
Motilal Oswal 16.6 815.35
Jaiprakash Asso 16.6 225.10
Unitech 16.5 326.50
Nagarjuna Fert 16.3 45.15