Intraday Calls 30 Apr. 2010

• YESTERDAY RECOMMENDATION: BUY HDIL MAY FUT 270.25 STOPLOSS 265.25 TARGET 274.95/280.65(1ST TARGET ACHIEVED)
• SELL UNITECH FUT 84.45 STOPLOSS 85.25 TARGET 83.95/82.90(1ST TARGET ACHIEVED)
• SELL TITAN FUT 2142 STOPLOSS 2160 TARGET 2113.30/2106.65
• OPTION STRATERGY : SELL 1 LOT RELIANCE 1120 CA AT RS 8 AND SELL 1 LOT RELIANCE 960 PA AT RS 8.50 "HOLD ON EXPIRY"
• SELL MCDOWELL FUT 1246 STOPLOSS 1258 TARGET 1236/1228(SL TRIG)
• BTST : BUY SAIL FUT 218 STOPLOSS 214 TARGET 221/225

Intraday Call 29 Apr. 2010

• STRATGEY CALL: SELL NIFTY 1 LOT 5400 CE AT 43.80 AND SELL NIFTY 1 LOT 5000 PE AT 44"HOLD ON EXPIRY"
• SELL JSWSTEEL FUT 1209 STOPLOSS 1217 TARGET 1202.15/1194(SL TRIG)
• BUY HEROHONDA MAY FUT 1843 NO STOPLOSS TARGET 1860/1890(1ST TARGET ACHIEVED)
• BUY HDIL MAY FUT 270.25 STOPLOSS 265.25 TARGET 274.95/280.65

Intraday Calls 28 Apr. 2010

• BUY JSWSTEEL FUT 1180 STOPLOSS 1176.15 TARGET 1191.05( BOOK PROFIT AT 1185 AND MADE NEW HIGH 1189.95)
• BUY BHEL FUT 2466 STOPLOSS 2457 TARGET 2486.80/2497.90

THIS RECOMMENDATION GAVE ON 26 APR.2010

• SELL AXISBANK FUT 1270 STOPLOSS 1285 TARGET 1251/1224(1ST TARGET ACHIEVED)

Maruti’s royalty to Suzuki rises 47% as it introduces new models

Maruti paid Rs1,000.93 cr in royalties to the Japanese firm in 2009-10, against Rs679 cr a year earlier. Mumbai: The royalty payments of Maruti Suzuki India Ltd to its Japanese parent have surged as India’s biggest car maker has stepped up the introduction of new models such as the Ritz and Eeco as it fights off competition to hold on to its top ranking. In the fiscal ended 31 March, royalty payments to Suzuki Motor Corp. rose 47% to Rs1,000.93 crore from Rs679 crore a year earlier. Maruti has been introducing at least one new model every year since 2003. Royalties are typically calculated as a percentage of net sales and derived from the use of an asset or a fixed price per unit sold of an item. Royalty as a percentage of net sales rose marginally to 3.5% from 3.3% a year ago. The upper limit on royalty as a percentage of net sales has been capped at 5% by the Reserve Bank of India. It’s factored in after reducing the value of the imported content. According to Ajay Seth, chief financial officer at Maruti, the company paid royalty on 86% of its total unit sales, 5% more than a year ago. In fiscal 2009-10, the company sold 1.18 million units in the domestic and export markets. While the number may rise in the next few years, analysts aren’t too perturbed by the increased payout. “In order to ensure that market share does not taper off, new model launches are a necessity and not a choice,” said Joseph George, analyst at BNP Paribas Securities India Pvt. Ltd. Royalty payments are a proxy for research and development expenses, he said. While Maruti launched eight new models in a span of 20 years from 1983 to 2003, it has introduced a similar number since that time, George said. Maruti needs to introduce new models as rivals try to capture market share with releases such as Ford India Pvt. Ltd’s Figo, Volkswagen India Pvt. Ltd’s Polo and General Motors India Ltd’s Beat. Meanwhile, the spiralling royalty costs may be reined in once Maruti’s in-house research and development centre at Rohtak in Haryana is set up. The company wants to produce a car designed and developed indigenously from this facility by 2012. “The India designed and developed car will help the company reduce their royalty bill gradually,” said Mahantesh Sabarad, analyst at Fortune Equity Brokers Pvt. Ltd. Royalty payments in the years ahead will be a function of a host of factors, said Maruti’s Seth. “It will depend on the kind of work we do there, and the use of technology,” he said. While there may be a reduction in the outgo, it’s premature to put a number to that, he said. Typically, new models attract a higher technical fee. As the model matures in its life cycle and the investment on fixed costs is amortized, royalty on the model diminishes, eventually exempting it from the fee. Seth said the Omni, 800 and Gypsy models do not attract any royalty. Maruti currently sells the 800 only in tier II and tier III cities, and will eventually discontinue its entry-level model. The phasing out of the 800, sales of which have been averaging 1,500-2,000 a month, will not have much impact on the royalty outgo. If the company phases out the Omni, which has been averaging 8,000 units a month or 10% of total sales, overall royalty outgo may rise as buyers switch to a new model. Maruti’s shares dropped 3.88% to close at Rs1,283.15 each on the Bombay Stock Exchange. A report released on Tuesday by Prabhudas Lilladher Pvt. Ltd showed that Ebidta (earnings before interest, taxes, depreciation and amortization) margins per car decreased to Rs34,000 in the fourth quarter of last fiscal compared with Rs39,000 in the previous quarter. “The aggressive pricing of the recently launched Wagon R and price cuts by other manufacturers make us believe that the industry’s profitability is in for a decline,” the report said. Sources : Live mint

Markets turn red as Greece, Portugal are downgraded

NEW YORK (AP) — U.S. stocks are following European markets lower after Portugal’s debt was downgraded, deepening fears that Europe’s debt problems are spreading. Standard & Poor’s slashed Portugal’s credit rating Tuesday, sending stocks sharply lower across Europe. S&P also downgraded Greece’s debt. Investors have been on edge about Greece’s fiscal crisis, and have worried that Portugal could be the next weak European economy to require help. That has undermined confidence in Europe’s shared currency, the euro. The Dow Jones industrial average is down 145.86, or 1.3 percent, at 11,059.17. The Standard & Poor’s 500 index is down 19.79, or 1.6 percent, at 1,192.26, while the Nasdaq composite index is down 35.91, or 1.4 percent, at 2,487.04. Stocks fell early in the day after European shares tumbled on new concerns about Greece’s ability to tap a bailout package to help relieve its debt troubles. Greece has to make a new round of payments on debt on May 19 and there are now questions about whether the country will get access to bailout money before then. The dollar rose against the euro as investors worry that debt problems in Greece and some of the 15 other countries that use the currency will upend an economic rebound on the continent. Most Asian markets fell on concerns that Chinese regulators will try to slow the country’s supercharged economic growth. The government has been trying to slow the country’s real estate market in hopes of avoiding a speculative bubble. source: Yahoo Finance

Core sector grows 7.2% in March

NEW DELHI: Core sector industries expanded by 7.2% in March, indicating strong industrial growth for the month and a pickup in investment activity. The six industries — crude production, petroleum refinery products, coal, electricity, cement and finished steel — have a combined weight of 26.7% in the index of industrial production. The core sectors had grown by 3.3% in March 2009. “I expect it (core sector growth) to reflect in the IIP figures for March,” said Suresh Tendulkar, former chairman of Prime Minister’s Economic Advisory Council. The data comes almost 15 days ahead of the industrial production numbers. The strong performance, however , failed to cheer the stock market . On Tuesday, the Bombay Stock Exchange’s benchmark 30-share index closed 0.31% down at 17,690.62, breaking a five-day winning streak. The core sector registered a 5.5% growth for the 2009-10 fiscal year against 3% last year, an official statement said on Tuesday. The sectors had grown 4.7% in February. The overall industrial growth in that month came in at a strong 15.1%. Industrial production had risen at a 16-year high of 16.8% in December 2009. The strong performance was led by a 9.2% growth by the steel sector, indicating strong demand in the user industries such as cars and white goods. Robust demand has pushed steel prices sharply in the last few months, prompting the government to step in persuade the major producers not to hike prices in view of high inflation. The Reserve Bank of India has hiked policy rates in its April 20 monetary policy review. Interest rates are likely to move up in reaction to the RBI’s action but this happens with a lag. Higher interest rates could depress both demand for goods and also investment activity, which has a bearing on both the core sector and the industrial production. Sources : Economic Times

Intraday Calls 27 Apr. 2010

• SELL RELCAPITAL FUT 741 STOPLOSS 748 TARGET 739.40/733.80(1ST TARGET ACHIEVED)
• BUY MCDOWELL FUT 1228 STOPLOSS 1218.75 TARGET 1239/1249(SL TRIG)
• BUY MARUTI FUT 1286 STOPLOSS 1270 TARGET 1304/1320

Intraday Call 26 Apr. 2010

• DELIVERY CALL: BUY SUNPHARMA 1613 STOPLOSS 1571 TARGET 1720/1755
• SELL AXISBANK FUT 1270 STOPLOSS 1285 TARGET 1251/1224

Jaypee Infratech IPO to open on Apr 29

Jaypee Infratech, a part of Jaypee Group, is entering capital market with a public issue on April 29, 2010. It is aiming to raise a maximum of Rs 23.5 billion (USD 530 million). Infrastructure development company has fixed the price band for issue at Rs 102-117 a share and the issue will close on May 4. Retail investors will get shares at 5% discount to issue price. The company is engaged in the development of the Yamuna Expressway, which is a 165-kilometre access-controlled six-lane concrete pavement expressway along the Yamuna river, with the potential to be widened to an eight-lane expressway, and related real estate projects. Jaypee Group incorporated this company on April 5, 2007 as a special purpose company to implement the concession. This concession also included the right to develop 25 million square metres (approximately 6,175 acres) of land along the Yamuna Expressway at five locations for residential, commercial, amusement, industrial and institutional purposes. The project is being developed at a cost of Rs 97.39 billion (USD 2 billion) and includes setting up townships at five locations along the highway. The issue consists of fresh issue aggregating up to Rs 1650 crore and an offer for sale of 6 crore equity shares by Jaiprakash Associates (JAL). JAL owns 99.1% of equity shares of company. Proceeds raised from the fresh issue will be partially used for financing the Yamuna Expressway Project while money from offer for sale will be received by JAL. The book running lead managers to the issue are Morgan Stanley India Company Private Limited, DSP Merrill Lynch Limited, Axis Bank Limited, Enam Securities Private Limited, ICICI Securities Limited, IDFC – SSKI Limited, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited. Karvy Computershare Private Limited is the registrar. ICRA has assigned the IPO Grade 3 indicating average fundamentals. CARE has assigned the CARE IPO Grade 3 indicating average fundamentals. The equity shares offered through the RHP of the company are proposed to be listed on the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE).

Reliance Industries Q4 net up 30% at Rs 4,710 cr; lags forecast

MUMBAI: Energy major Reliance Industries posted a 30 percent rise in quarterly profit but lagged estimates as lower-than-expected refining marginsTop gainers, losers & recos Q4 Earnings Stock Quote: RIL offset gains from higher gas output off India's east coast. India's largest listed conglomerate, controlled by billionaire Mukesh Ambani, has been scouting for acquisitions overseas, and progress on that front will determine its outlook. ( Watch ) "We continue to seek growth opportunities within India and globally to accelerate further value creation," Ambani said in a statement. Reliance, with interests in petrochemicals, refining, oil and gas exploration, and retail, posted January-March net profit of Rs 4,710 crore ($1.1 billion) versus 36.3 billion rupees a year earlier. The year-ago results were restated to include figures from Reliance Petroleum, which it absorbed last year. Margins at Reliance's flagship refining business stood at $7.5 a barrel for the quarter, but lagged market estimates of $8.3 a barrel. Analysts expect margins to rise as the global economy recovers. The company recently said it would pay $1.7 billion to form a joint venture with Atlas Energy at one of the most promising natural gas deposit regions in the United States. The outcome of a long-running gas dispute with Reliance Natural, led by Mukesh's younger brother Anil, will also have a bearing on the company's outlook. Reliance is unable to hit peak gas production of 80 million standard cubic metres a day (mmscmd) at its D6 block in the vast Krishna Godavari basin in the Bay of Bengal due to customers not buying allocated volumes, and a lack of pipelines. But analysts say current production of 60 mmscmd is still enough to boost results. Reliance began pumping gas from the block in April last year. Shares in Reliance, India's biggest listed firm with a market value of about $78 billion, have dropped 8 percent in the past two weeks, while the broader Mumbai market is down 2.6 percent.

Intraday Calls 23 Apr. 2010

• BUY SUNPHARMA FUT 1692 STOPLOSS 1680 TARGET 1707.05/1727.10(1ST TARGET ACHIEVED)
• BUY TATAPOWER FUT 1332 STOPLOSS 1324 TARGET 1341(TARGET ACHIEVED)

Intraday Calls 21 Apr. 2010

• Buy Great Eastern Shipping Company Ltd at 332.75, target:342. Stoploss: 326
• Buy Supreme Petrochem Ltd at 44.90, target: 47. Stoploss: 42.50

Intraday Call 20 Apr. 2010

• SELL ABAN FUT 1208 STOPLOSS 1215.30 TARGET 1199.90/1187.95
• SELL BANKNIFTY FUT 9450 STOPLOSS 9505.05 TARGET 9405.10/9365.05

Intarday Calls 19 Apr. 2010

• SELL AXIS BANK FUT 1136 STOPLOSS 1140.25 TARGET 1128/1116(SL TRIG)
• BUY HEROHONDA FUT 1907 STOPLOSS 1891 TARGET 1929/1935/1957
• BUY STER FUT 814.50 STOPLOSS 810 TARGET 826

Intraday Calls 16 Apr. 2010

• BUY SBIN FUT 2036 STOPLOSS 2020.20 TARGET 2050.35/2071.20(1ST TARGET ACHIEVED)
• SELL DIVIS LAB FUT 722 STOPLOSS 725.75 TARGET 719/713.90(1ST TARGET ACHIEVED)
• SELL SUNPHARMA FUT 1815 STOPLOSS 1825 TARGET 1803.20/1790.45(1ST TARGET ACHIEVED)

Intraday calls 15 Apr. 2010

• SELL JSWSTEEL FUT 1281.50 STOPLOSS 1287.70 TARGET 1276/1267(BOTH TARGET ACHIEVED)
• SELL TATAPOWER FUT 1360 STOPLOSS 1365 TARGET 1353/1349(BOTH TARGET ACHIEVED)
• SELL RELINFRA FUT 1146 STOPLOSS 1152 TARGET 1137(TARGET ACHIEVED)

Satyam will take two years to compete against TCS, Infy & Cognizant: CEO

HYDERABAD: Beleaguered Satyam Computer, which was taken over by the Mahindras a year ago and renamed as Mahindra Satyam, is still facing major operational challenges, said CEO CP Gurnani. He said the company will take two more years to rejoin the race against erstwhile peers TCS, Infosys and Cognizant. “At the time of acquisition, we had presented a three-year transformation plan. The company still needs another two years to level out on some scorecards. It has been structurally reorganised to reduce the management layers between the CEO and a trainee engineer from 14 to seven. These changes have happened for transparency, collaboration among teams and for better customer centricity,” he said. Mahindra Group vice-chairman Anand Mahindra and Tech Mahindra CEO Vineet Nayyar, along with corporate affairs minister Salman Khurshid, flew down to Hyderabad on Monday to mark the first anniversary of Satyam’s takeover by the Mahindras. The toughest challenge facing Mahindra Satyam is attrition. Analysts say while the industry average attrition is 13-14%, the company’s attrition rate could be higher at 30%. While there has been some client issues, the firm said it has been able to retain almost all customers post takeover. Mahindra Satyam is, however, hopeful of meeting the financial restatement deadline, slated for June-end. “There are other aspects related to the recovery of Mahindra Satyam that we have to tackle with either our law or that of another country. Whatever could be constructively done, and in collaboration with whichever wing of the government, has been done. We are trying to ensure things can move fast,” said Union corporate affairs minister Salman Khurshid. Anand Mahindra is more bullish. “I don’t see any reason why we should not aim for the top. We started with a handicap. While we were working on recovering ground, people were building their companies. But we also have a secret weapon that is the mission orientation of people at Mahindra Satyam.” Vice-Chairman and Managing Director, Mahindra group, Anand Mahindra said Mahindra Satyam can be in No.1 position if the support and cooperation of employees continues in the same way. "Nobody is going to dispute the fact that why we should not be able to become number one. First, we started with a handicap, we came out of the crisis with a secret weapon, which is mission orientation of Mahindra Satyam," Mahindra said. Praising showers on employees, he described them as unsung heroes as they stuck to the company even when it was sailing in rough weathers. The Mahindra Satyam SEZ, which is spread across in 26 acres, will have 4,00,000 sq ft built up area. the first phase of the campus will be ready for occupation in six months and will have seating capacity of 5,000 employees

Sources: Economictimes

Infosys net profit grows 2.21 pct in quarter four results

Infosys Technologies, a software services exporter posted 2.21 percent growth in net profit at rupees 16.17 million for the fourth quarter ending March 31, 2010. S D Shibulal, Chief Operating Officer, Infosys, Bangalore disclosed this at a press conference here on Tuesday. "The quarter has done very well. We have grown 5.2 percent in volume terms. Our top 25 clients have grown 7.6 percent, so it has been a very good quarter for us," said Shibulal. Infosys, sector leader Tata Consultancy Services, and the third-ranked Wipro have revived hiring, signalling improving demand for the outsourcing sector. Infosys added 47 clients during the period between January and March, its strongest pace of additions in seven quarters, taking the total tally to 575. Over 1.8 million of Infosys shares were traded on the BSE, while over 17 times the daily average over the last 30 days. "At the beginning of the year, we had said that our operating margin would down by about 300 basis points. We are ending the year with an operating margin increase of 90 basis points. So, clearly again our initiatives towards controlling costs, our initiatives to manage our expenses have worked. We have also been able to take advantage of the growth," said Chris Gopalkrishnan, Chief Executive Officer and Managing Director, Infosys Technologies, Bangalore. Infosys, which counts Goldman Sachs, BT Group and BP among its customers, expects its dollar revenue to rise 16-18 percent in the year that started on April 1. Most brokerages were expecting growth of 12-15 percent. Bangalore-based Infosys, set up in 1981 with 250 dollars borrowed from the spouses of their seven founders, expects its earnings per share to rise 4.3-8.6 percent for the full year. Sources: Sify (ANI)

Intraday Calls 12 Apr. 2010

• SELL SUNPHARMA FUT 1817 TARGET 1805.45/1793.95(BOTH Target Achieved)
• SELL MARUTI FUT 1390 STOPLOSS 1397 TARGET 1379.20(Target Achieved)

RPT-UPDATE 5-Reliance to pay Atlas $1.7 bln for Marcellus stake

(Repeats story issued late on Friday)

* Reliance to pick up 40 pct in Atlas Energy's acreage

* Co to pay $340 mln cash, $1.36 bln as JV development

* Atlas to be development operator for the joint venture

* Atlas shares jump 20 pct, Reliance up 1.8 pct (Adds details about Exco, updates share price)

By Pratish Narayanan and Michael Erman

MUMBAI/NEW YORK, April 9 (Reuters) - Indian energy giant Reliance Industries (RELI.BO: Quote, Profile, Research) will pay $1.7 billion to form a joint venture at one of the most promising natural gas deposit regions in the U.S. with Atlas Energy (ATLS.O: Quote, Profile, Research), becoming the latest foreign company to invest in shale plays that are expected to be very lucrative.

Reliance, controlled by billionaire Mukesh Ambani, has been working hard to expand its presence outside India, break into new markets and broaden its various businesses including refining, oil and gas exploration and petrochemicals.

India's largest listed firm will pick up a 40 percent stake in Atlas's operations in the booming Marcellus Shale -- a gas project that spans parts of Pennsylvania, West Virginia and New York in the United States and which, according to some geologists, could hold enough natural gas to satisfy U.S. demand for a decade.

With this move it joins a number of international oil companies including BP Plc (BP.L: Quote, Profile, Research), Total (TOTF.PA: Quote, Profile,Research), Statoil (STL.OL: Quote, Profile, Research) and Mitsui & Co (8031.T: Quote, Profile, Research) (MITSY.O: Quote, Profile, Research) who have bought into shales, rock formations that could hold vast amounts of natural gas.

While the shale formations have proven to be lucrative, they are also very expensive to develop and environmentally sensitive. The joint ventures have given the independent oil companies who own much of the acreage in these areas access to capital and should allow foreign oil companies to pick up expertise in new drilling techniques developed for the shales.

"This marks Reliance's foray into a totally new venture altogether. Reliance is going to generate a lot of cash flows going ahead and investments in shale gas could be a good growth opportunity," said Deepak Pareek, oil and gas analyst with Angel Broking.

Reliance Chairman Ambani, who according to Forbes is the world's fourth-richest man with a net worth of $29 billion, has made no secret of the firm's overseas ambitions as the company has raised a war chest of $2 billion by selling stock in recent months.

But Reliance, founded by Ambani's father Dhirubhai, a school teacher's son, had not met with much success until now in its foreign takeover attempts.

Bankrupt petrochemicals firm LyondellBasell [ACCEIN.UL] recently rejected a bid from Reliance that valued the target at about $14.5 billion, and the Indian firm also lost a race for Canadian oil sands firm Value Creation, in which it wanted to take a majority stake for $2 billion. [ID:nSGE6270CQ] [ID:nSGE62F090]

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For a NEWSMAKER on Mukesh Ambani, click [ID:nSGE62304N]

For a FACTBOX on Reliance, click [ID:nBOM516811]

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Shares in Reliance closed up 1.8 percent on Friday, while the Mumbai market .BSESN rose 1.2 percent.

Atlas Energy shares jumped $6.44, or 20.3 percent, to $38.25 on the Nasdaq on Friday.

Shares of other companies with acreage in the Marcellus Shale, including Exco Resources (XCO.N: Quote, Profile, Research) and Range Resources (RRC.N: Quote, Profile, Research), were also boosted by the news.

More joint ventures in the region can be expected to follow, bankers said. Exco, in particular, should be closely watched. Chief Executive Doug Miller said in February that the company was in discussions for a potential joint venture with its acreage there.

JOINT VENTURE

Atlas's core Marcellus position consists of about 300,000 acres, largely in southwestern Pennsylvania, out of which about 120,000 acres will go to Reliance, the companies said.

Upon closing Reliance will pay about $340 million in cash and must also contribute $1.36 billion to the joint venture to develop the shale project, Atlas said in a statement. [ID:nBw095331a]

Reliance is paying around $14,000 an acre for its share of the Marcellus acreage, which is in line with what Japan's Mitsui paid for its joint venture with Anadarko Petroleum Corp (APC.N: Quote, Profile, Research) announced in February [ID:nN16229402]. Still, the price is more expensive than most of the previously announced deals.

The members of Atlas's management team have a background in finance and are known for their deal making skills, said Marshall Carver, energy analyst at Capital One Southcoast in New Orleans.

Atlas Energy Chairman Edward Cohen is also chairman of Resource America Inc (REXI.O: Quote, Profile, Research), a publicly traded asset management company, and Chief Operating Officer Richard Weber was head of energy investment banking at KeyBanc Capital Markets from June 1997 to March 2006.

"This deal was certainly done at a good price" for Atlas, Carver said.

Atlas will serve as the development operator for the joint venture, and will retain a 60 percent undivided interest in the acreage.

Reliance will have the option to buy 40 percent in all new acreages, and also has the right to first offer for potential future sales by Atlas of about 280,000 additional Appalachian acres controlled by the U.S. firm.

Debate over drilling in the region has sharpened in recent months. Environmentalists claim the drilling fluids needed to crack the rock and free the gas can contaminate drinking water, an assertion the industry hotly disputes.

Jefferies & Co was the lead financial advisor, while J.P. Morgan Securities (JPM.N: Quote, Profile, Research) was another advisor to Atlas.

Barclays (BARC.L: Quote, Profile, Research) advised Reliance on the deal, which is expected to close by the end of April.

(Additional reporting by Indulal P.M. in Mumbai and Anna Driver in Houston; Editing by Rupert Winchester, Phil Berlowitz and Bernard Orr)

Sources: Reuters

ULIP spat unlikely to impact equity mkt: Analysts

NEW DELHI: The turf war between two sectoral regulators SEBI and IRDA over equity-linked insurance scheme (ULIPs) is unlikely to impact the stock market in a big way even as insurance companies would not hardsell the products, analysts said. "There will not be any big impact on markets due to this controversy as April is considered as lean month for insurance companies," Bonanza Portfolio Vice President (Equities) R L Narayanan said. ULIPs -- one of the most common insurance plans sold by life insurers, where the money collected from consumers is invested into equity and debt markets and returns are linked to the same -- have become a bone of contention between the two financial sector regulators, with both claiming authority to regulate these schemes. On Friday, capital markets regulator SEBI had banned 14 life insurance companies from selling ULIPs, without its approval. The companies which come under the ban include Reliance Life, SBI Life, ICICI Prudential, Tata AIG and HDFC Standard Life, "The market has got enough time to digest the development in the ULIP issue and there are less possibility of any impact in coming trading sessions," SMC Capitals Equity head Jagannadham Thunuguntla said.

Marketmen said the spat between the two regulators for control of ULIP is not new and investment in equity market would not be affected largely because of this. "We expect the issue to be sorted out in a week's time. there is no concern of insufficient liquidity in stocks even if ULIPs are not the main driver of Dalal Street," Narayanan said. Meanwhile, Insurance Regulatory and Development Authority (IRDA) has asked the 14 insurance companies to ignore the ban imposed by SEBI, and asked the companies to continue their business as usual. ULIPs account for over 50 per cent of the total life insurance business in the country.

SEBI bans 14 insurance company’s from selling ULIPs

Market regulator SEBI has banned 14 major insurance companies from raising money from the public for any unit-linked insurance products (ULIPs), fueling a fresh war between SEBI and insurance watchdog IRDA, reports CNBC-TV18’s Avni Raja.

The 14 companies are SBI Life, ICICI Prudential, TATA AIG, Aegon Religare Life, Aviva Life, Bajaj Allianz, Bharti AXA, Birla Sunlife, HDFC Standard Life, ING Vysya Life, Kotak Mahindra old mutual life, Max New York Life, Metlife India and Reliance Life.

While passing the order late last night, the Securities and Exchange Board of India said the entities have not obtained any registration from the regulator though the ULIPs launched by them had an investment component in the nature of mutual funds. The order is to come into force with immediate effect.

SEBI had issued show cause notices to all these companies in January.

Commenting on the same, IRDA Head said it would approach the court to decide ULIP regulatory jurisdiction, reports CNBC-TV18 quoting NewsWire18. Further he said they were awaiting a copy of SEBI’s order banning ULIP sale and was not aware of any such move.

Unsure about when the court would decide on the ULIP regulator, he said over Rs 1 lakh crore in the products was a fair estimate.

Today's Event & Intraday Calls 09-Apr.-2010

• SELL RELIANCE FUT 1125 STOPLOSS 1130 TARGET 1119/1115/1104(1ST AND 2ND TARGET ACHIEVED)
• SELL AXISBANK FUT 1164 STOPLOSS 1172 TARGET 1152.40/1149.65
• SELL HDFC FUT 2816 STOPLOSS 2835 TARGET 2793/2764

09-Apr-2010

Key Events :

• Bafna Spinning to consider stock split

Bafna Spinning Mills & Exports has informed that a meeting of the board of directors of the company will be held on April 09, 2010, to consider regarding sub division (stock split) of face value of equity shares of the company from Rs5 to Re1 each.

Corporate Actions :

1. CASTROL,BONUS 1:1,Ex Dt: Apr 9 2010,Rcd Dt: Apr 12 2010

2. CLNINDIA,DIVIDEND-RS.15 PER SHARE,Ex Dt: Apr 9 2010,St Dt: Apr 13 2010 End Dt: Apr 23 2010

3. GSKCONS,AGM/DIV-RS.18/- PER SHARE,Ex Dt: Apr 9 2010,St Dt: Apr 13 2010 End Dt: Apr 23 2010

Today's Event & Intraday Calls 08-Apr.-2010

• SELL MCDOWELL FUT 1370 STOPLOSS 1382.15 TARGET 1355.35/1330.30(BOTH TARGET ACHIEVED)
• SELL UNITECH 77.45 STOPLOSS 78.95 TARGET 76.85/75.66(IN CASH ONLY)(1ST TARGET ACHIEVED)
• OUR INVESTMENT RECOMMENDATION: " EVEREST IND " TARGET ACHIEVED AT 205 TODAY N GIVEN US BY AT 174
• BUY JUBLIEE FOOD 384.50 STOPLOSS 380.50 TARGET 391/405(1ST TARGET ACHIEVED)
• BUY SAIL FUT 237 STOPLOSS 232 TARGET 242/249

08-Apr-2010

Corporate Actions :

1. COLPAL,3RD INT DIV-RS.5/- PR SHR,Ex Dt: Apr 8 2010,Rcd Dt: Apr 9 2010

2. SRF,2ND INT DIV-RS.7/- PR SHR,Ex Dt: Apr 8 2010,Rcd Dt: Apr 9 2010

3. THINKSOFT,INT DIV-RE.1/- PER SHARE,Ex Dt: Apr 8 2010,Rcd Dt: Apr 9 2010

RBI needs to take monetary action: Report

NEW DELHI: The Reserve Bank of India (RBI) will have to further tighten monetary policy on April 20 if prices continue to rise, as expected, from 9.89 percent headline inflation in February, the chief statistician said on Wednesday. "If RBI is signaling a concern about inflation, and if inflation continues to accelerate, they will certainly do something," Pronab Sen told Reuters in an interview on Wednesday. He also said the WPI inflation rate in March is likely to be higher than in the previous month, partly due to base effect. Sen also said the Reserve Bank of India's decision in March to raise the repo rate and reverse repo rate by 25 basis points each have had no major impact on inflation.

Today's Event & Intraday Calls 07-Apr.-2010

1. SELL JSWSTEEL FUT 1284.50 STOPLOSS 1287 TARGET 1277/1274(BOTH TARGET ACHIEVED)
2. SELL BAJAJAUTO FUT & CASH 2091 STOPLOSS 2110 TARGET 2074/2036(1ST TARGET ACHIEVED)

07-Apr-2010

Corporate Actions :

1. AVENTIS,AGM/DIV-RS.16.50 PR SHARE,Ex Dt: Apr 7 2010,St Dt: Apr 9 2010 End Dt: Apr 27 2010

2. UNITY,FV SPLIT RS.10 TO RS.2,Ex Dt: Apr 7 2010,Rcd Dt: Apr 8 2010

Today's Event & Intraday Calls 06-Apr.-2010

06-Apr-2010

Corporate Actions :

1. ARSSINFRA,INT DIV-RS.2/- PER SHARE,Ex Dt: Apr 6 2010,Rcd Dt: Apr 7 2010

2. WYETH,AGM/DIV-RS.20/- PER SHARE,Ex Dt: Apr 6 2010,St Dt: Apr 8 2010 End Dt: Apr 21 2010

Today's Event & Intraday Calls 05-Apr.-2010

Commodity Update:

• SELL MCX GOLD JUN 16542 STOPLOSS 16579 TARGET 16505/16458(BOTH TARGET ACHIEVED)
• SELL NCDEX CHANNA APR 2318 STOPLOSS 2329 TARGET 2300/2271
• BUY MCX SILVER MAY 27276 STOPLOSS 27200 TARGET 27388/27561(1ST TARGET ACHIEVED)

Equity Update :

• SELL BHEL FUT 2426 STOPLOSS 2438 TARGET 2414/2402(1ST TARGET ACHIEVED
• SELL RELINFRA FUT 1043 STOPLOSS 1051 TARGET 1032/1018(SL TRIG)
• SELL SESAGOA FUT 466.50 STOPLOSS 471.45 TARGET 460/454
• Our Last Recommendation of 01 Apr. 2010

HEROHONDA Fut AT 1904 & 1923 ( Both Target Achieved )

05-Apr-2010

Corporate Actions :

1. CADILAHC,BONUS 1: 2,Ex Dt: Apr 5 2010,Rcd Dt: Apr 6 2010

2. FOSECOIND,FINAL DIV-RS.7/- PR SHARE,Ex Dt: Apr 5 2010,St Dt: Apr 7 2010 End Dt: Apr 16 2010

3. SEINVEST,FV SPLIT RS.10 TO RS.2,Ex Dt: Apr 5 2010,Rcd Dt: Apr 6 2010

4. SKFINDIA,AGM/DIV-RS.4/- PER SHARE,Ex Dt: Apr 5 2010,St Dt: Apr 7 2010 End Dt: Apr 13 2010

Events 05 Apr. - 10 Apr.2010

05-Apr-2010

Corporate Actions :

1. CADILAHC,BONUS 1: 2,Ex Dt: Apr 5 2010,Rcd Dt: Apr 6 2010

2. FOSECOIND,FINAL DIV-RS.7/- PR SHARE,Ex Dt: Apr 5 2010,St Dt: Apr 7 2010 End Dt: Apr 16 2010

3. SEINVEST,FV SPLIT RS.10 TO RS.2,Ex Dt: Apr 5 2010,Rcd Dt: Apr 6 2010

4. SKFINDIA,AGM/DIV-RS.4/- PER SHARE,Ex Dt: Apr 5 2010,St Dt: Apr 7 2010 End Dt: Apr 13 2010

06-Apr-2010

Corporate Actions :

1. ARSSINFRA,INT DIV-RS.2/- PER SHARE,Ex Dt: Apr 6 2010,Rcd Dt: Apr 7 2010

2. WYETH,AGM/DIV-RS.20/- PER SHARE,Ex Dt: Apr 6 2010,St Dt: Apr 8 2010 End Dt: Apr 21 2010

07-Apr-2010

Corporate Actions :

1. AVENTIS,AGM/DIV-RS.16.50 PR SHARE,Ex Dt: Apr 7 2010,St Dt: Apr 9 2010 End Dt: Apr 27 2010

2. UNITY,FV SPLIT RS.10 TO RS.2,Ex Dt: Apr 7 2010,Rcd Dt: Apr 8 2010

08-Apr-2010

Corporate Actions :

1. COLPAL,3RD INT DIV-RS.5/- PR SHR,Ex Dt: Apr 8 2010,Rcd Dt: Apr 9 2010

2. SRF,2ND INT DIV-RS.7/- PR SHR,Ex Dt: Apr 8 2010,Rcd Dt: Apr 9 2010

3. THINKSOFT,INT DIV-RE.1/- PER SHARE,Ex Dt: Apr 8 2010,Rcd Dt: Apr 9 2010

09-Apr-2010

Key Events :

• Bafna Spinning to consider stock split

Bafna Spinning Mills & Exports has informed that a meeting of the board of directors of the company will be held on April 09, 2010, to consider regarding sub division (stock split) of face value of equity shares of the company from Rs5 to Re1 each.

Corporate Actions :

1. CASTROL,BONUS 1:1,Ex Dt: Apr 9 2010,Rcd Dt: Apr 12 2010

2. CLNINDIA,DIVIDEND-RS.15 PER SHARE,Ex Dt: Apr 9 2010,St Dt: Apr 13 2010 End Dt: Apr 23 2010

3. GSKCONS,AGM/DIV-RS.18/- PER SHARE,Ex Dt: Apr 9 2010,St Dt: Apr 13 2010 End Dt: Apr 23 2010

10-Apr-2010

No Events Scheduled for the Day

11-Apr-2010

No Events Scheduled for the Day

Intraday Calls 01-04-2010

• SELL HDFC FUT 2745 STOPLOSS 2751 TARGET 2735/2730/2715(SL TRIG)
• SELL RELINFRA FUT 1027 STOPLOSS 1040 TARGET 1013.60/995.20
• BUY HEROHONDA FUT 1884 STOPLOSS 1868 TARGET 1904/1923