ONGC Q4 net profit up 71% at Rs 3776 cr

Oil and Natural Gas Corporation

(ONGC) has announced its fourth quarter results of FY10. It has reported net profit of Rs 3,776 crore as against Rs 2,207 crore, a growth of 71.09% on year-on-year basis (YoY).

Net sales rose 7.36% to Rs 14,713 crore from Rs 13,704 crore (YoY).

Other operating income rose to Rs 1,289 crore from Rs 430 crore (YoY).

Subsidy payout in the fourth quarter was at Rs 4,999 crore as against Rs 852 crore in same period of last year.

Total costs declined to Rs 11,032 crore from Rs 12,168 crore.

Net realisation increased to USD 51.42 a barrel versus USD 43.40/bbl (YoY).

For FY10, the company has reported consolidated net profit of Rs 19,403.5 crore as against Rs 19,795.3 crore and net sales at Rs 1.01 lakh crore versus Rs 1.04 lakh crore.

In a press conference, the management said:

The company paid subsidy of USD 27.74 a barrel in Q4 as against USD 4.45/bbl (YoY).

FY10 net realisation also jumped to USD 55.94/bbl versus USD 47.70/bbl.

Intraday Calls 28 May 2010

• SELL SESAGOA FUT 354 STOPLOSS 360 TARGET 346/335(SL TRIG)
• SELL INFOSYSTCH FUT 2656 STOPLOSS 2670 TARGET 2641/2636(BOTH TAREGT ACHIEVED)
• POSITIONAL CALL: SELL HDFC FUT 2782 STOPLOSS 2820 TARGET 2740/2710
• POSITIONAL CALL: SELL RELIANCE FUT 1036 STOPLOSS 1060 TARGET 1025/1008(1ST TRAGET ACHIEVED)
• POSITIONAL CALL: SELL IBREALEST FUT 156.25 STOPLOSS 162 TARGET 150/148
• POSITIONAL CALL: SELL ONGC FUT 1138 STOPLOSS 1155 TARGET 1118/1091
• POSITIONAL CALL: SELL SBIN FUT 2214 STOPLOSS 2246.35 TARGET 2183/2164

Intraday Calls 27 May 2010

• BUY INFOSYSTCH JUNE FUT 2619 STOPLOSS 2605 TARGET 2633/2653(BOTH TARGET ACHIEVED)
• BUY SAIL JUNE FUT 194.50 STOPLOSS 191.55 TARGET 196.40/200.55(BOTH TARGET ACHIEVED)
• BUY AXIS BANK JUNE FUT 1164 STOPLOSS 1158 TARGET 1174/1190 (CASH & FUT BOTH)(BOTH TARGET ACHIEVED)
• SELL TATAMOTORS JUNE FUT 725 STOPLOSS 730 TARGET 715/701(SL TRIG)
• SELL SBIN JUNE FUT 2184 STOPLOSS 2200 TARGET 2175/2160/2142(SL TRIG)

Factory orders and new-home sales rise in April- IN USA

WASHINGTON (AP) -- The economic recovery got a lift in April as orders for large manufactured goods surged while sales of new homes benefited from homebuyer tax credits. Manufacturing is helping drive the rebound. But some economists worry about the threat posed to U.S. exports from the widening debt crisis in Europe. And some fear that home sales will falter in coming months because the tax breaks for buyers have expired. Still, economists found the two Commerce Department reports released Wednesday generally encouraging. "These are very strong numbers which suggests that the second quarter started off on a very solid note," said Mark Zandi, chief economist at Moody's Analytics. Demand for commercial aircraft lifted orders for durable goods 2.9 percent last month. That was the best showing in three months. Excluding transportation, orders fell 1 percent in April. But that came after the March figures were revised to show a 4.8 percent jump. A separate report showed sales of new single-family homes jumped 14.8 percent in April. That gain followed a 29.8 percent surge in March, the biggest monthly increase in 47 years. Home sales have surged this spring as buyers rushed to sign sales contracts before tax credits expired on April 30. Historically low mortgage rates also helped fuel purchases. But sales are expected to slump in the coming months as households deal with slow job growth and tight credit. Even with sales rising, the median price of a new home tumbled last month: It dropped 9.6 percent to $198,400. That indicates continued stress in the housing market. Manufacturing has held steady during the recovery. U.S. companies are benefiting from rising demand at home and in major export markets. But some fear the debt crisis in Europe could derail the global recovery and depress U.S. exports. The overall economy, as measured by the gross domestic product, grew at an annual rate of 3.2 percent in the January-March quarter. Economists thinks that figure will be revised slightly higher to 3.4 percent on Thursday. Zandi said he expected GDP growth to dip slightly to just below 3 percent in the second quarter, partly because he thinks Europe's debt problems will weigh on U.S. exports. Growth may slow further in the second half of the year to around 2.5 percent, he said. "I believe our recovery will be strong enough to weather the storm coming from Europe, but it will be a test," Zandi said. The rise in April orders was led by a 228 percent surge in demand for commercial aircraft, a volatile category. Boeing Co. booked orders for 34 new 777 planes, minus four cancellations. The orders included four freighters for FedEx, which has said it sees the economy improving. Last year, Boeing cut production rates. Now, with demand rising, Boeing has said it will speed up production of the 777 as well as its large 747 next year. It will also accelerate production of the smaller 737 in 2012. Orders for motor vehicles climbed 1.6 percent in April. Total transportation orders rose 16.1 percent. The 1 percent drop in orders excluding transportation resulted from declines in some sectors, such as heavy machinery, that had seen big gains in March. Analysts said the slight dip is a momentary pause and not a sign of weakness. The two months of big increases in new-home sales pushed activity to the highest level since May 2008. Sales remain well below the peaks set at the height of the housing boom. Still, luxury homebuilder Toll Brothers Inc. posted a narrower loss in its latest quarter and saw a surge in orders for new homes. Toll's new-home contracts jumped 41 percent in the February-April period. And the value of the builder's backlog increased for the first time in years, the company said. CEO Robert Toll said customers are becoming more confident in their job security, their ability to sell previous homes and the outlook for home prices. But he expects only a gradual recovery as homebuyers grapple with high unemployment and volatility in the financial markets. There are indications that the surge in overall home sales has slowed this month. The number of buyers applying for a mortgage last week fell to its lowest level in 13 years, the Mortgage Bankers Association said Wednesday. The trade group's purchase index dropped 3.3 percent even as rates on 30-year fixed loans hit their lowest point of this year. New-home sales showed strength in all areas of the country in April except the Northeast, where activity was unchanged. Sales rose 31.6 percent in the Midwest, 21.7 percent in the West and 10.8 percent in the South. AP Airlines Writer Joshua Freed in Minneapolis and AP Real Estate Writers J.W. Elphinstone in New York and Alex Veiga in Los Angeles contributed to this report. ("Factory orders and new-home sales rise in April"); Sources : yahoofinance.com

Intraday Calls 26 May 2010

OUR LAST RECOMMENDATION ON 25 MAY 2010: (ROCK WITH MARKET)

• BUY HDFC 2615 STOPLOSS 2590 TARGET 2642/2680(CASH ONLY)(BOTH TARGET ACHIEVED)
• POSITIONAL CALL : BUY SESAGOA JUNE FUT 311 STOPLOSS 300 TARGET 323/338(1ST TARGET ACHIEVED)
• BUY TATAMOTORS JUNE FUT 688 STOPLOSS 679 TARGET 694/708(1ST TARGET ACHIEVED)

Today's Calls 26 May 2010

• POSITIONAL RECOMMENDATION : BUY ICICIBANK JUNE FUT 827 STOPLOSS 815 TARGET 856/893 BUY IN CASH ICICIBANK 838 STOPLOSS 825 TARGET 866/903

Intraday Calls 25 May 2010

• BUY HDFC 2615 STOPLOSS 2590 TARGET 2642/2680(CASH ONLY)
• POSITIONAL CALL : BUY SESAGOA JUNE FUT 311 STOPLOSS 300 TARGET 323/338
• BUY TATAMOTORS JUNE FUT 688 STOPLOSS 679 TARGET 694/708

Intraday Calls 24 May 2010

• SELL AXIS BANK FUT 1226 STOPLOSS 1240 TARGET 1214/1197(1ST TARGET ACHIEVED)
• POSITIONAL CALL :SELL SBIN FUT 2285 STOPLOSS 2317 TARGET 2255/2212(1ST TARGET ACHIEVED AND MADE NEW LOW 2225 BOOK PROFIT)

BoR approves swap ratio at 1:4.72

The Board of Bank of Rajasthan (BoR) today approved the swap ratio of 1:4.72 as offered by ICICI Bank to merge the two entities. "The swap ratio of 1:4.72 has been approved by the board today," BoR's Director K N Bhandari told reporters here after the board meeting. ICICI Bank board also met today to discuss the merger proposal. With BoR board approving the swap ratio the proposal will now go to the Extraordinary General Meeting (EGM) slated on June 21, he said. Asked whether the merger will adversely impact BoR employees, Bhandari said, "All BoR employees will be retained and there will no job losses."

Intraday Calls 21 May 2010

OUR LAST RECOMMENDATION ON 20 MAY 2010:

• SELL ONGC FUT 1116 STOPLOSS 1154 TARGET 1090/1077(1ST TARGET ACHIEVED)

RECOMMENDATION ON 21 MAY 2010:

• BUY SESAGOA FUT 336 STOPLOSS 331 TARGET 349(BOOK PROFIT AT 341.75)
• POSITIONAL CALL : BUY RELIANCE FUT 985 STOPLOSS 970 TARGET 1016/1050
• BUY BHUSHAN STEEL 1378 STOPLOSS 1362 TARGET 1397/1420(CASH OR FUT BOTH)(BOTH TARGET ACHIEVED)
• BUY JSWSTEEL FUT 1043 STOPLOSS 1038 TARGET 1072(TARGET ACHIEVED)
• DO NOT MISS THIS RECOMMENDATION: BUY HDFC FUT 2690 STOPLOSS 2674 TARGET 2723/2740/2790 (CASH OR FUT BOTH)(1ST & 2ND TARGET ACHIEVED)
• SELL SAIL FUT 201 STOPLOSS 203 TARGET 196(SL TRIG)

Fed says Europe crisis threatens economy - Wall Street

By Pedro Nicolaci da Costa WASHINGTON (Reuters) - Europe’s debt crisis poses a “potentially serious” risk to the U.S. economic recovery because it threatens global credit markets and large American banks, a top Federal Reserve official said on Thursday. Fed Governor Daniel Tarullo said Europe’s debt woes, if not contained, could cause financial markets to freeze and spark a global crisis akin to the market meltdown of late 2008. Until last week, Fed officials had been playing down the possible impact to the United States from Europe’s turmoil. “The European sovereign debt problems are a potentially serious setback,” Tarullo said in testimony prepared for deliver to two congressional subcommittees. Thursday marked another turbulent day in global financial markets. U.S. stocks plunged about 2.5 percent and investors fled from risky assets around the world. The euro, which this week hit a four-year low, was again under pressure. Investors’ anxiety still centers on Greece, but fears have grown that even the roughly $1 trillion emergency fund put together by the Europe Union and the International Monetary will not be enough to solve Europe’s debt problems. “Investors are aware that this package cannot ultimately relieve the need for real, and likely painful, fiscal reforms in the euro area,” said Tarullo. The remarks were an unusually detailed pronouncement on economic matters from a Fed governor who tends to focus on regulatory issues. “If sovereign problems in peripheral Europe were to spill over to cause difficulties more broadly throughout Europe, U.S. banks would face larger losses on their considerable overall credit exposures,” Tarullo said. “In addition to imposing direct losses on U.S. institutions, a heightening of financial stresses in Europe could be transmitted to financial markets globally.” To some extent, financial markets are already showing signs of increased strain, buttressing the view of those who believe the Fed will likely leave U.S. interest rates near zero percent until sometime next year. The U.S. economy has been recovering relatively quickly since hitting a bottom in the summer of 2009. Gross domestic product, the broadest measure of total economic output, jumped at a 3.2 percent annual rate in the first quarter. But that recovery could be pressured by a reduction in global trade if the European outlook worsens, Tarullo said. Ted Truman, a former Treasury official who is now a senior fellow at the Peterson Institute, and who will testify to the congressional subcommittees following Tarullo, said the threat is very real. “The risk is that the European situation will spiral out of control, spread within Europe beyond Greece and push Europe back into recession, and further damage the U.S. and global economy and financial system,” he said in his prepared testimony. Sources: Yahoo finance

Intraday Calls 20 May 2010

• SELL ONGC FUT 1116 STOPLOSS 1154 TARGET 1090/1077
• SELL IBREALEST FUT 158 STOPLOSS 161.50 TARGET 155.30/152.75(1ST TARGET AVHIEVED)
• SELL GAIL 450 STOPLOSS 456 TARGET 444/440(IN CASH ONLY)(BOTH TARGET ACHIEVED)
• BUY TATAMOTORS FUT 720 STOPLOSS 716.10 TARGET 734.70(SL TRIG)

Intraday Calls 19 May 2010

• BUY SESAGOA FUT 364 STOPLOSS 359.65 TARGET 369/371(1ST TARGET ACHIEVED)
• BUY TATAMOTORS 750 STOPLOSS 744.50 TARGET 759/762(CASH & FUTURE)

Intraday Calls 18 May 2010

• SELL IBREALEST FUT 169.50 NO STOPLOSS TARGET 166/165(BOTH TARGET ACHIEVED)
• BUY BHEL 2292 STOPLOSS 2275 TARGET 2315/2350 (IN CASH ONLY)(1ST TARGET ACHIEVED&BOOK PROFIT 2332)
• POSITIONAL CALL : BUY ABAN 795 STOPLOSS 750 TARGET 874.50/914.25
• POSITIONAL CALL : SELL SBIN FUT 2267 STOPLOSS 2293 TARGET 2245/2220(SL TRIG)
• BUY SAIL FUT 208 STOPLOSS 205 TARGET 211.75/213.10(BOTH TARGET ACHIEVED)
• SELL LT FUT 1643 STOPLOSS 1659 TARGET 1632/1621(SL TRIG)

Intraday Calls 17 May 2010

• BUY SESAGOA FUT 368 STOPLOSS 363 TARGET 375/378/390(ALL TARGET ACHIEVED)
• BUY ULTRATECH CEMENT 912 STOPLOSS 905 TARGET 922/938 (IN CASH ONLY) (BOTH ACHIEVED AT 921)
• BUY BANKNIFTY FUT 9355 STOPLOSS 9300 TARGET 9455/9470(BOTH TARGET ACHIEVED)

Intraday Calls 14 May 2010

• OUR POSITIONAL CALL ON 11 MAY 2010 : SELL SESAGOA FUT 401 STOPLOSS 416 TARGET 377(BOOK PROFIT 385)
• OUR LAST RECOMMENDATION ON 13 MAY 2010: SELL MARUTI FUT 1280 STOPLOSS 1292 TARGET 1264/1260(1ST TARGET ACHIEVED)
• SELL ONGC FUT 1054 STOPLOSS 1062 TARGET 1042.40(TARGET ACHIEVED)

Live Trading Session on Sunday May 16, 2010 : Sources Nse India

This is with reference to circular no. 090 (Download Ref No.NSE/CMTR/14775) dated May 13, 2010 regarding the Special live trading session on Sunday May 16, 2010. In this regard, members may please note that the timings for files uploaded and downloaded by Clearing Corporation on May 16, 2010 will be the same as on a normal trading day. It may also be noted that the cut-off time for reporting/modifying institutional trades done on May 14, 2010 and May 16, 2010 will be 9:30 a.m on May 17, 2010. Kindly note that the Early Pay–in and Collateral Updation facility will not be available on May 16, 2010. Please read this CIRCULAR on NSEINDIA

Food inflation inches up to 16.44%

The annual food articles inflation inched up marginally to 16.44 per cent for the the week ended May 1 against 16.04 per cent in the previous week. The index for primary articles that also include food articles rose by 2.9 per cent to 299.5 (provisional) from 291.2 (provisional) for the previous week. The annual rate of inflation for primary articles, calculated on point to point basis, stood at 16.76 per cent (provisional) for the week ended 01/05/2010 over (02/05/2009) as compared to 13.93 percent (provisional) for the previous week (ended 24/04/2010) and 6.39 per cent during the corresponding week (ended 02/05/2009) of the previous year. The index for food articles group rose by 0.6 per cent to 294.0 (provisional) from 292.3 (provisional) for the previous week due to higher prices of tea (5%), fruits & vegetables and fish-inland (2% each) and urad, arhar, masur and condiments & spices (1% each). However, the prices of barley (2%) and maize, ragi and jowar (1% each) declined. The index for non-food articles group rose by 9.9 per cent to 283.1 (provisional) from 257.5 (provisional) for the previous week due to higher prices of sugarcane (50%), raw cotton (2%) and copra, sunflower, castor seed and linseed (1% each). However, the prices of raw rubber (2%) and tobacco (1%) declined. The index for the fuel group rose by 0.1 per cent to 365.3 (provisional) from 365.1 (provisional) for the previous week due to higher prices of lubricants (3%) and furnace oil (1%).

Intraday Calls 13 May 2010

• SELL SBIN FUT 2335 STOPLOSS 2352 TARGET 2318/2300(1ST TAREGT ACHIEVED)
• SELL LT FUT 1578 STOPLOSS 1589.50 TARGET 1557/1551(BOTH TARGET ACHIEVED)
• SELL MARUTI FUT 1280 STOPLOSS 1292 TARGET 1264/1260

Intraday Call 11 May 2010

• POSITIONAL CALL: SELL GRASIM FUT 2627 STOPLOSS 2680 TARGET 2580/2560(1ST TARGET ACHIEVED)
• POSITIONAL CALL: SELL SBIN FUT 2327 STOPLOSS 2358 TARGET 2296/2280(BOTH TARGET ACHIEVED)
• POSITIONAL CALL: SELL SESAGOA FUT 401 STOPLOSS 416 TARGET 377

Intraday calls 10 May 2010

• SELL NIFTY FUT 5090 STOPLOSS 5120 TARGET 5044/5019(SL TRIG)
• SELL BHUSHAN STEEL FUT 1621 STOPLOSS 1631 TARGET 1600/1590

Intraday Calls 07 May 2010

• BUY CNXIT FUT 5780 STOPLOSS 5746 TARGET 5808/5846.40

Verdict in Reliance gas dispute case tomorrow

The Supreme Court will pronounce on Friday its verdict on the nation’s most talked corporate battle over gas supply, outcome of which will shape the future of flagship energy firms run by brothers Mukesh and Anil Ambani. A three-judge bench headed by Chief Justice K G Balakrishnan, who demits office on Tuesday, will give its judgement on the gas pricing and supply dispute between Reliance Industries (RIL) and Reliance Natural Resources (RNRL) . The apex court will decide if RNRL is entitled to get 28 million cubic meters a day from RIL’s eastern offshore KG-D6 fields, at $2.34 per mmBtu, a price 44 per cent lower than government approved rates. RNRL claims at least one-third of the peak output from KG-D6 flows citing a 2005 family agreement that divided the Dhirubhai Ambani empire between the two brothers. RIL, already India’s largest firm by market cap, is on the verge of becoming the nation’s biggest firm by profit this year, but for a judgement where it would have to sell gas at lower rate while paying royalty and taxes at $4.2 per mmBtu. On the other hand, Anil, may have to rework plans for the ambitious 7,800 MW planned power project at Dadri in Uttar Pradesh if the apex court refuses to give it preferential treatment in supplies and price. Chief Justice K.G. Balakrishnan, who had after 26 days of hearing, reserved a judgement on lawsuits fought by high profile lawyers Harish Salve (for RIL) and Ram Jethmalani (for RNRL) on December 18, is due to demit office on May 11. Before coming to the Supreme Court, the Bombay High Court had ruled that RNRL was entitled to get gas at concessional rates as had been decided in the family agreement. However in the apex court, the government, through the Oil Ministry, impleaded in the case asserting that natural gas was a national property and it cannot be surreptitiously divided through private agreements. If the three-judge panel upholds the Bombay High Court verdict, RIL will have to supply gas to Anil Ambani group’s proposed Dadri power plant at $2.34 per mmBtu, 44 per cent lower than the government set price. That may not be a problem for RIL unless the court says the government fixed price of $4.2 per mmBtu for KG-D6 should be used for calculation for taxes and royalty. In such a scenario, RIL stands to lose huge revenues over the 17 year contract period. Also, RIL will have to find new source of gas to meet its obligation as KG-D6 field may not be producing 28 mmcmd for 17 year from the date Dadri is commissioned, which may be at least three years from now. If, however, the RIL contention that it cannot sell gas at price less than $4.20 per million British thermal unit as set by the government and to customers other than those identified in accordance with the Gas Utilisation Policy, is upheld, the Anil Ambani Group will have to rework plans for the 7,800 MW Dadri plant. RIL says it was robbed of its freedom to market gas after RNRL, in the run-up for fixation of price of KG-D6 in 2007, sought a GUP. The apex court heard the case for 26 days since it commenced on October 20. It also witnessed the recusal of Justice R.V. Raveendran from the Bench after hearing the matter for six days on the ground that he held shares of both RIL and RNRL Sources: THE HINDU

Intraday Call 06 May 2010

• SELL TATAMOTORS FUT 824 STOPLOSS 832 TARGET 809(TARGET ACHIEVED)
• SELL UNITECH FUT 77.60 STOPLOSS 78 TARGET 77.05/76.15(BOTH TARGET ACHIEVED)
• BUY HDFCBANK FUT 1899 STOPLOSS 1880 TARGET 1909.65/1926.95
• BUY LT FUT 1515 STOPLOSS 1503 TARGET 1525/1544(SL TRIG)

Temasek gets approval to buy 5 pc in NSE

Singapore’s state-owned investment house Temasek Holdings (Private) Ltd today said that it has received regulatory approvals to buy 5 per cent stake in the National Stock Exchange of India (NSE). Temasek is paying between USD 150 million and USD 180 million for the stake to be acquired from NYSE Euronext, according to financial experts. “Temasek continues to focus on investments in India and believes in its long—term potential,” said Manish Kejriwal, a senior managing director at Temasek, which manages some USD172 billion worth of assets. “We see our investment in NSE as a good proxy to India’s economic growth and the development of its capital markets,” Kajriwal said. This is Temasek’s second investment in India within the past month. It had reached an agreement to invest USD 200 million in India’s GMR Energy. In 2007, NYSE Euronext, together with General Atlantic and Softbank’s Asian infrastructure fund, had paid USD 490 million for a 20 per cent stake in NSE. NYSE Euronext share was USD 115 million. NSE is India’s leading multi—asset class exchange. Its current shareholders include Indian and global banks, insurance companies and investors. As at March 2010, there were 1,470 companies listed on the exchange with a combined market capitalisation of Rs 6,009,173 crores (approximately USD 1.3 trillion). In March 2010, the average daily trading turnover on the exchange was Rs 88,305 crores or approximately USD 19.6 billion, of which Rs 13,631 crores or approximately USD 3 billion is in cash equities and Rs 74,674 crores or approximately USD16.6 billion in derivatives.

Sources : THE HINDU

Greece debt fears push euro to 13-month low

The euro has continued its slide against the dollar, reflecting the continued loss of investor confidence in some European economies. The euro has fallen to $1.2954 - its lowest level for more than a year. Share markets in Asia also dropped after heavy falls in Europe on Tuesday. The Singapore market was down 1.5% and Hong Kong's Hang Seng index fell 2.1%. Investors remain concerned over the debt crisis in Greece, and the fear that it may spread to other economies. On Tuesday, the Spanish Prime Minister Luis Rodriguez Zapatero was forced to deny rumours that Spain would be next to seek financial rescue, following the agreement of a 110bn-euro ($143bn; £95bn) bail-out package for Greece over the weekend. Investors have cited Spain, along with Portugal, Ireland and Italy, as the eurozone economies with the most worrying debt problems next to Greece. Spain and Portugal's cost of borrowing on the bond markets rose again on Tuesday, reflecting investors' fears of default. There is also scepticism over the chances of success of the Greek rescue plan, with the necessary cost-cutting measures in Greece proving domestically unpopular. Wednesday sees the beginning of a huge general strike in Greece in protest at public sector cuts. Sources : BBC News

Intraday Calls 05 May 2010

• BUY ACC FUT 867.50 STOPLOSS 856.50 TARGET 875./881(1ST TARGET ACHIEVED)
• BUY RELIANCE FUT 1011.50 STOPLOSS 1000 TARGET 1019/1030(1ST TARGET ACHIEVED)
• BUY SESAGOA FUT 377 STOPLOSS 372.90 TARGET 383.55/390.45(BOTH TARGET ACHIEVED)
• BUY CNXIT 5800 STOPLOSS 5780 TARGET 5820/5852(BOTH TARGET ACHIEVED)
• BUY GRASIM IN CASH ONLY 2552 STOPLOSS 2527.85 TARGET 2597/2605.60(BOTH TARGET ACHIEVED)
• BUY BHUSHANSTEEL FUT 1588 STOPLOSS 1570 TARGET 1617(BOOK PROFIT AT 1613)
• SELL BANKNIFTY FUT 9475 STOPLOSS 9525 TARGET 9430/9390(STOPLOSS TRIG)
• BUY TATAPOWER FUT 1310 STOPLOSS 1299 TARGET 1334/1345(BOOK PROFIT AT 1319)
• BUY STER IN CASH ONLY 739 STOPLOSS 730 TARGET 752(TARGET ACHIEVED)

JSW Steel posts Rs 1,598-crore profit in FY10

MUMBAI: JSW Steel, India’s third-biggest steelmaker, on Monday said its board has agreed to allot warrants to promoters to reduce debts and part finance capex plans. The issue of the 1.75 crore warrants convertible into equity shares, will raise about Rs 2,100 crore, according to the pricing based on Sebi’s norms, said people connected with the development. The warrants will be convertible into equity shares within 18 months and will raise the promoter holding to 49.7% from the current 45%, said a JSW statement. The company said it has identified coking coal assets in the US, along with railway load out and barge facility. The company board has approved the acquisition of these assets which have resources totalling 123 million tonne. “While one of these mines is operating, the rest can be made operational over 24 months. The business plan envisages to commence production of coking coal of 1 million tonne in the first year, to be ramped up to 3 million tonne in the third year,” said the JSW statement. The company said increased demand from construction and automobile companies has helped it post a net profit of Rs 611 crore for the fourth quarter, while the sales stood at Rs 5,844 crore. For the full year, JSW Steel’s net profit stood at Rs 1,598 crore, with a revenue totalled Rs 20,211 crore. JSW Steel said its fourth quarter performance was aided by higher volumes and firm prices. The company’s crude steel volumes grew 66%, while saleable steel was up 43%, compared to the same period last year. The board has proposed a dividend of Rs 9.50 per share for the year ended March 31, 2010.

NYSE sells 5% stake in NSE to Temasek

MUMBAI: US-based stock exchange NYSE today announced selling its five per cent stake in India’s top bourse NSE to Singapore government’s investment arm Temasek. The deal marks exit of New York Stock Exchange from National Stock Exchange and Temasek’s entry as shareholder. The transaction has received the necessary regulatory approvals, NSE and Temasek said in a joint statement, but did not elaborate on the financial details.. NYSE had acquired 5 per cent of NSE in 2007 for 115 million dollars, valuing the bourse at about 2.3 billion dollars. However, in June last year, private equity firm Norwest Venture Partners bought a little over two per cent stake from IL&FS Securities Services in a secondary transaction for Rs 250 crore, thus valuing NSE at about 2.5 billion dollars. NSE’s current shareholders include Indian and global banks, insurance companies as also investment companies from India and abroad. Shares of close to 1,500 companies are traded on NSE with a combined market capitalisation of over Rs 60,00,000 crore. The average daily turnover at the exchange is close to 20 billion dollars (about Rs 88,000 crore). Commenting on the deal, NSE Managing Director Ravi Narain said: “Temasek is a well-respected investor and we welcome them as a shareholder.” Temasek Senior MD Manish Kejriwal said that the company sees its investment in NSE as a “good proxy” to India’s economic growth and development of its capital markets. source: Economictimes

Intraday calls 03 May 2010

• BTST : BUY SAIL FUT 218 STOPLOSS 214 TARGET 221/225( 1ST TARGET ACHIEVED)
• OUR LAST DAY RECOMMENDATION :SELL TITAN FUT 2142 STOPLOSS 2160 TARGET 2113.30/2106.65( 1ST TARGET ACHIEVED AND TODAY'S LOW 2110)
• BUY CNXIT FUT 5912 STOPLOSS 5890 TARGET 5940/5963(1ST TARGET ACHIEVED)
• BUY BHUSANSTEEL FUT 1750 STOPLOSS 1734.80 TARGET 1763.40/1773.65
• BUY SESAGOA FUT OR CASH 398 STOPLOSS 387.75 TARGET 405.20/413.60/431.05 ( U CAN HOLD ALSO)

Stocks turn lower after weaker-than-expected GDP - Wall Street

Disappointment over two economic reports and worries about a criminal investigation of Goldman Sachs sent stocks falling sharply. Investors lost some of their optimism about the economy Friday after the government’s weaker-than-expected gross domestic product report and news of a drop in consumer sentiment. Concerns surrounding financial regulation contributed to the selling, which took the Dow Jones industrial average down more than 100 points. “The market may just be a little bit tired,” said Michael Sheldon, chief market strategist at RDM Financial Group in Westport, Conn. “A lot of good news is priced into the market.” Many analysts have said the stock market was poised for a pullback after it climbed steadily for nearly three months. In the last trading session of April, the Dow is still set to post its third straight monthly gain. However it looks like it will snap an eight-week winning streak. Friday’s pullback began after the Commerce Department said the GDP rose at a 3.2 percent annual pace in the January-March period. That was below the 3.4 percent rate economists polled by Thomson Reuters had forecast. While the GDP was up for the third straight quarter, it was down from the fourth quarter’s 5.6 percent, a rate that was inflated by government stimulus spending and companies restocking their depleted inventories. For the economy to show healthy growth, it would have to grow at a faster pace than it did the first three months of the year. Growth would have to equal 5 percent for all of 2010 just to lower the average jobless rate for the year by 1 percentage point. The Labor Department will release its April employment report next week. Economists predict the unemployment rate held steady at 9.7 percent. Analysts were relatively upbeat that the first-quarter growth rate, though slow, probably was good enough to help avoid a “double-dip” recession. “GDP was slightly lower than expectations, but shows the economic recovery is probably sustainable,” said Peter Cardillo, chief market economist at Avalon Partners Inc. in New York. Investors were disappointed by a separate report from Reuters and the University of Michigan that showed consumer sentiment rose to 72.2 in April from a preliminary April reading of 69.5. However, it was still lower than March’s 73.6. Economists had forecast a reading of 71. The consumer sentiment report shows the “consumer isn’t fully recovered,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. Investors want to see data that shows month-over-month improvement, Luschini added. Financial stocks were pulled down by Goldman Sachs Group Inc., which is now facing a criminal investigation for its dealings in subprime mortgage securities. A Standard & Poor’s equity analyst downgraded Goldman Sachs’s stock to a “sell” rating Friday morning. Its shares dropped more than 9 percent. In afternoon trading, the Dow fell 106.33, or 1 percent, to 11,060.99. The Standard & Poor’s 500 index fell 15.03, or 1.3 percent, to 1,191.75, while the Nasdaq composite index fell 37.11, or 1.5 percent, to 2,474.81. The Chicago Purchasing Managers Index rose this month, further evidence of a recovery in the manufacturing sector. The index, which reflects economic activity in the Midwest, jumped to 63.8 in April, from 58.8 last month. Economists expected the index to rise to 60. Investors were keeping an eye on the European debt problems. The biggest concerns are in Greece, where the country faces loan repayments in a couple of weeks. If it is unable to tap a joint European Union and International Monetary Fund bailout package before May 19, the country could default on its debt. Analysts fear that debt problems will spread across the continent and stunt a global economic recovery. Greece, Portugal and Spain all saw their debt ratings slashed by Standard & Poor’s earlier this week. Greece’s was cut to junk status. Lower ratings make it more expensive to borrow money, which would only add to debt burdens already facing some European nations. European markets fell. Britain’s FTSE 100 dropped 1.2 percent, Germany’s DAX index fell 0.2 percent, and France’s CAC-40 fell 0.8 percent. The euro rose against the dollar, but analysts remain cautious about its long-term future. Some have said that the debt problems could further drive down its value or lead to a split among the 16 countries that share the currency. Meanwhile, Goldman Sachs is again contending with negative headlines. The big Wall Street bank — which is already facing civil fraud charges for misrepresenting details about subprime mortgage securities — is now also facing a criminal investigation. “They’re really going after Goldman pretty hard,” said Ryan Detrick, senior technical analyst at Schaeffer’s Investment Research. “That’s got people on edge.” The Justice Department has opened a criminal investigation against the bank over mortgage securities deals it arranged. Many blame the credit crisis on the collapse of similar securities which were traded by many banks around the world. Detrick said that after all asset bubbles, regulators and politicians look for companies or executives to blame and Goldman is currently at the top of that list. Goldman shares tumbled $15.31, or 9.5 percent, to $144.93. Other big banks with trading operations like Morgan Stanley and JPMorgan Chase & Co. fell more than 3 percent. About two stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1 billion shares. Bond prices rose as stocks dipped. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.67 percent from 3.73 percent late Thursday. Gold and oil prices both rose. The Russell 2000 index of smaller companies fell 15.92, or 2.1 percent, to 721.82.