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Reliance Equity Advantage bets on banking, auto
2008-02-09 16:12:02
Reliance Equity Advantage increased its weightage to the banking, auto, telecom, and FMCG sectors. However, it pared exposure to oil & gas, utilities and cement stocks. (See more - What is Reliance Equity Advantage buying/selling?)

The analysis of the scheme for January 2008 shows that in the banking sector, it bought ICICI Bank and HDFC. In the auto pack, it introduced Tata Motors and purchased Maruti Suzuki.

In the telecom sector, it bought Reliance Communication, while sold Bharti Airtel. In the consumer non-durable pack, it introduced Hindustan Unilever.

The scheme purchased Cairn India, ONGC, Reliance, but sold BPCL. In the utilities pack, it bought Reliance Energy, NTPC, Tata Power. It purchased Unitech in cement and construction pack.

Reliance, ONGC and Reliance Communication were the top stocks held by the scheme in January. Oil & Gas (21.04%), Banking (11.83%) and Telecom(10.30%) were the top invested sectors in the scheme's portfolio. (Check out - Top stocks held by Reliance Equity Advantage).

The equity exposure of the scheme has increased from 80.92% to 89.49%. The total assets managed by the scheme over the month were Rs 2285.64 crore as on January 31, 2007.

Over the last six months, Reliance Equity Advantage has yielded 12.5% returns as against 22.59% yielded by its benchmark S&P CNX Nifty as on February 7, 2008

Idea Cellular not a cheap stock
2007-04-23 18:49:27

Anand Tandon, Gryffon Investment Advisors is of the view that Idea Cellular is not a cheap stock.

Tandon told CNBC-TV18, “The best that can be said for Idea is that they have the largest footprint to increase therefore on an existing operation to new operation space; they can probably grow the fastest because they have just got some new licenses and their current footprint is fairly small.”

He further added, “On the valuation parameters, of course, they are not cheap compared to any other large players but the overall space still seems to be growing and some of the other companies also including the market leaders are growing at a very breakneck speed, so far without any signs of exertion. So, so long as the growth continues, the overall space will continue to look attractive and being one of the smallest companies in the area now well funded as well as with the regulatory permissions required, they have the potential to grow among one of the fastest points in the sector.”

“It is not cheap, as I mentioned, it is probably more expensive compared to some of the others, so you can take a call but this sector still continues to attract a lot of investment interest.”

What experts say about Reliance Power listing?
2008-02-08 21:58:07
Reliance Power listing is a big awaiting event for every investors on the street, who have got allotment of it shares as well as for market as it was the biggest issue in Indian Capital Market history. It is going to list on Monday, February 11, 2008.

During the issue time, experts were expecting the premium for Reliance Power nearly Rs 400-450. Everyone was very optimistic about this listing. But as the market's turmoil has been started post issue, the premium also start declining. It reduced to Rs 120-150 as per experts quote. So we will check what experts are expecting on listing?

Manisha Bhatt of Prabhudas Lilladher says, "Reliance Power is expected to list with Rs 120-130 premium. One can book partial profits during the day. The stock can go below issue price of Rs 450 if market remains subdued."

According to R S Iyer of K R Choksey Securities, "The stock is likely to list at around Rs 450-500 after looking at negative sentiment and low volumes in the market. It will not slip below issue price. People should not sell the stock due to panic, they should wait for better price. The stock will see the price of Rs 650 in near term but not on listing day. So once this sentiment would get improved in near term, investors can sell the stock at that price, till that time wait."

"It is presumed that share will list at around Rs 600 per share, on 11th February. In that situation, it is likely that majority of HNI Category investors would come to sell in the market and this category is holding about 2.28 crore shares. Since, majority investors of this category had gone for margin funding, purely from trading angle, this liquidation is likely to happen", Investment Advisor, S P Tulsian said.

He also said, "Retail Category is holding about 6.84 crore shares and since, returns to them are quite high, as compared to HNI Category, good amount of profit booking is expected by these investors as well. While talking about QIB Category, they are always smart to take the side, where wind is blowing. Since, investment of only Rs 45 per share, having made by this category of investors, interest cost to them is low at around Rs 27 per share. Hence, they will be too eager to book profit on the listing day at a price levels of Rs.600 per share."

"Hence, it is likely that selling of close to 5 crore share, may get witnessed on the listing day, from all categories of investors, put together. Due to dull sentiments now prevailing in the secondary market, matching buying may not emerge, which could keep share price soft on the listing day. Profit booking is advised in the counter upto Rs.575 level, as prices are likely to fall below this level, in the next 15 to 20 days and may get settled at around Rs.500 levels. Buying is not advised above Rs.550, for first couple of days, as lot of volatility is likely", he added.

The issue price has been fixed at Rs 450. The stock will be part of NSE F&O, the lot size is of 450 shares and options strike priced between Rs 10-1350.

Reliance Power IPO was oversubscribed approximately 70 times. Portion reserved for qualified institutional buyers was oversubscribed 82.5 times, 10% of the net issue reserved for non institutional investors was oversubscribed 159.6 times and 30% of the net issue reserved for retail investors was oversubscribed 13.6 times.

With approximately 42 lakh shareholders Reliance Power will be the largest shareholder base company among the companies listed on the Stock Exchanges.

Reliance Power is the flagship company of the Reliance ADA Group to develop, construct and operate power generation projects. The company is currently developing 12 power projects with a combined planned installed capacity of 28,000 MW, one of the largest portfolios of power generation assets under developments.

UCO Bank defers public issue plan due to volatile mkts
2008-02-08 13:39:32
UCO Bank had planned follow on public offer of 9 crore shares before March 2008. But the bank deferred public issue plan due to volatile markets,

SVEC IPO extends to Feb 13, revises price band at Rs 80-90
2008-02-08 21:40:44
Market turmoil has also forced a Hyderabad based company, SVEC Constructions to rethink on its price band as the company has revised its price band to Rs 80-90 from earlier Rs 85-95 and extended the closing date to February 13 from February 8.

The company has entered capital market with an initial public offering of 40 lakh equity shares of Rs 10 each on February 4. The issue got subscribed just 0.20 times.

The company, which has experience in the areas of building and irrigation works, plans to raise between Rs 34 crore-Rs 38 crore.

The company plans to deploy funds for the purchase of capital equipment worth Rs 15.32 crore and for meeting the long-term working capital requirements estimated at Rs 23.86 crore.

The company’s order book position as on November 30, 2008 stands at Rs 521.91 crore.

The book running lead managers to the issue are Karvy Investor Services Ltd and Centrum Capital Ltd.

Chrysler in deal to source seats from India - report




Click to enlarge photo
MUMBAI (Reuters) - U.S. car maker Chrysler LLC's Indian unit has signed a 4 billion rupee contract with a New Delhi-based car seat maker to source seats for its Jeep Wrangler, an Indian newspaper reported on Sunday.

This was just the beginning of Chrysler's strategy to outsource automobile parts from Southeast Asia and negotiations were on for more such contracts, the Business Line paper said, citing an unnamed senior company official.

"We buy $40 billion worth of supplies each year. We would like to procure as much as possible from South-East Asia," the official said in the report.

The seats will be fitted in the Wrangler vehicles being made at Chrysler's Toledo unit in the United States, the report added.

Private equity firm Cerberus bought an 80 percent stake in Chrysler from Daimler last year.

Sunday February 10, 01:08 AM ***** to reject Microsoft bid -



NEW YORK (Reuters) - ***** Inc. is set to reject Microsoft Corp.'s offer, initially worth $44.6 billion, as undervaluing the business, a source familiar with the situation said on Saturday.

The Internet media giant is expected to reject Microsoft's offer on Monday, the source said.

Thursday July 5, 11:45 AM 5 common investment mistakes
By Personalfn.com



If you are an investor who believes that getting invested is a simple 3-step process i.e. getting hold of an investment agent, filling up an application form and signing a cheque; then you got it all wrong. Investing is a lot more 'sophisticated' than that. It is an important activity that involves systematically short-listing your most important investment objectives and preparing an investment plan to realise them in the best possible manner. Although this may sound a little difficult, it can be achieved simply by avoiding some very common investment mistakes. Investors must note that since the list of mistakes one must avoid is endless; we have highlighted the five most common mistakes.

1. Investing without a plan
The first and most critical step while investing is to outline your investment objectives. Setting an investment objective simply means prioritising your needs into short, medium and long-term investment goals. For instance, planning for vacation (short-term), planning to buy property (medium to long-term), planning for retirement (long-term). Often investors stumble at the starting point while defining investment objectives; this in turn gets their financial plan in a tizzy.

2. Not diversifying well enough
Diversification is one of the basic tenets of investing. At Personalfn, we regularly meet clients who have invested a large portion of their monies in a single asset (like real estate for instance) or a single investment (like a stock). While such investors may do well during a runup in that asset/market (like real estate or stocks), it takes a downturn to underline how important it is to spread your eggs in more than one basket. Investors, depending on their risk profile should diversify their portfolios across asset classes like equities, fixed income, gold and real estate, among others. Similarly, within an asset class, they should diversify across various avenues, for instance within fixed income they should invest in fixed deposits, fixed maturity plans and small savings schemes. More than anything else, diversification helps to minimise/spread risk particularly during a downturn, as one investment can be a backup for another.

3. Ignoring risk
Often investors select an investment avenue/scheme simply because it provides better returns or is recommended by a friend, family member or investment advisor. Investment decisions should not be influenced merely on the basis of performance or a strong recommendation. Investors should understand that various investments have varying risk profiles. For instance, stocks/equity funds have a higher risk profile, while debt is relatively low risk. You must select an investment based on whether it suits your risk profile. For instance, a 55-Yr old who is headed for retirement must avoid technology stocks, which can prove apt for a 30-Yr old.

4. Getting married to your investments
Often investors have 'pet' investments and they can get attached to the same. So despite a dismal show, some 'pet' investments manage to hold their ground in the portfolio. Getting attached to your investments can prove detrimental to your investment plan. Is that house/car/vacation more important or a non-performing investment? The answer is obvious to any rational investor. Ensure that you review your portfolio regularly and weed out the duds. If an investment is no longer contributing to your investment objective, it has no business being in your portfolio.

5. Timing the markets
Some investors often delude themselves into believing that they are experts. So more than investing, they are often engaged in 'pastimes' like timing the markets. To be sure, even when market-timing works (which is rare since no one can predict stock market movements accurately and consistently), it does not do significantly better than regular investing regardless of market movements. Studies have shown that even if an investor called the market bottom consistently and accurately over a period of time, he would have done only slightly better than the investor who invests (the same amount) regularly over the same time period. This is no magic; this is the result of cost averaging and compounding (which incidentally Albert Einstein called 'the greatest mathematical discovery of all time').

Put simply, this implies that risk-taking investors must abandon the temptation to get caught up with stock market highs and lows. Instead, they must work at regularly setting aside a sum of money and investing the same in line with their risk profiles regardless of stock market fluctuations.

Thursday February 7, 02:00 PM ONGC Mittal eyeing contracts in Iraq - Mittal Exec



MUMBAI (Reuters) - ONGC Mittal Energy Ltd, a joint venture between India's Oil and Natural Gas Corp and Mittal Investments Sarl, is eyeing for opportunities in exploration and production in Iraq, Sudhir Maheshwari vice-president for finance at ArcelorMittal told Reuters.

He declined to comment if ONGC Mittal would seek registration with the Iraqi government for exploration.

RPT-Europe's equity bull has left the building
Sun Feb 10, 2008 5:00am EST Email | Print | Share| Reprints | Single Page | Recommend (3) [-] Text [+]

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¥ € $ - Learn. Practice. Trade.(Repeats with no change to text)

By Amanda Cooper

LONDON, Feb 10 (Reuters) - As much of Asia rings in the year of the rat, European equity investors are bidding farewell to the bull run that has finally drawn to a close after several years of double-digit gains.

European equity investors have enjoyed a prolonged period of chunky returns, thanks to record merger activity and robust economic growth driven by low interest rates and easy credit.

But the worst liquidity squeeze in decades has left the shadow of a contagious U.S. recession that could threaten earnings growth beyond Wall Street. As a result, European corporates have suffered for their exposure to the ills of their transatlantic counterparts.

By most measures, the broader European stock market, as reflected by the DJ Stoxx index of the top 600 companies in the region , has entered bear territory, having fallen by more than 20 percent since hitting 6-1/2 year highs last July.

Entry into a bear trend is often characterised by a drop of 20 percent or more from a peak, along with a shift in certain chart patterns. Rallies can ensue, but these tend to be short lived, marking successively lower peaks and troughs until the market finally hits a bottom.

"We're going into a bear market, and that will mean faux-rallies and short term pick-ups that people will be willing to trade in and out of, which could be exciting but could also be potentially lethal," said Justin Urquhart Stewart, a director at 7 Investment Management.

Continued...