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L&T in pact with GE Energy

Mumbai, May 16: Engineering and construction major Larsen & Toubro on Friday said it has entered into a strategic partnership with GE Energy for focusing on the Indian power generation market.

"L&T was looking to provide reliable control systems offering for the rapidly developing power generation sector in order to complete its electrical and automation suite," L&T president operations and member of the board R N Mukhija said.

As per the partnership agreement, GE Energy would provide its power plant main control system products to L&T, the company said in a filing to the Bombay Stock Exchange.

While, L&T would leverage its strengths in engineering and project execution as well as experience in the Indian market to deliver comprehensive power plant automation solution to customers.

"This agreement with GE for the OC4000 series DCs, fulfills this need and is an important step in serving the power plant automation space," Mukhija added.

GE Energy is a global supplier of power generation and energy delivery technologies.

Reliance finalises 69 films for production in next two years
17 May, 2008, 0821 hrs IST,

MUMBAI: Reliance BIG Entertainment,the media and entertainment arm of the Anil Dhirubhai Ambani (ADA) group has finalised a slate of 69 films in nine languages for production and distribution over the next two years.

The films include those in collaboration with India's leading production houses and Reliance's own in-house films. Amongst the prominent deals include -two film deal with Vidhu Vinod Chopra including a mainstream English language film "Broken Horses", a six film deal with Excel entertainment promoted by Farhan Akhtar and Ritesh Sidhwani including Shah Rukh Khan starrer "Don II".

There is also a two film deal with director Shyam Benegal, four film deal with Madhur Bhandarkar, three film deal with Vivek Agnihotri and two film deal with Sudhir Mishra, Amit Khanna, chairman of Reliance BIG Entertainment said in a statement issued here today.

Khanna said Reliance ADA group has 106 operating cinema screens at present and it is expected to go up to 400 by the end of the calender year 2009. Earlier this year, the group made its foray into the US exhibition market and has expanded its film exhibition presence across India,Malaysia and Mauritius.

Out of the total films, those in post production stage are "Rock On", "Sarkar Raj", "Love Story 2050", "Pathshala", Tamil film "Yaavaram Nallam", "Hulla", "Summer 2007", Punjabi film "Mera Pind", "Shabri".

Films in production stage are "Luck By Chance","Daddy Cool", "Singh is King", "Sultan-the Warrior", "Dulha Mil Gaya", "Sikander" and animation film "Hey Krishna".

Investors should use the current rally to exit
16 May, 2008, 1107 hrs IST,

Last week started on a strong note with good participation from IT stocks, following the appreciation in the dollar against the rupee. But as the week proceeded, concerns over rising inflation due to high commodity prices dampened the mood. The market failed to hold on to its early gains and ended the week on a bearish note.

The Sensex had corrected around 31% in the fall from 21,206 to 14,677 between January and March, and then made a high of 17,735 on May 5. Since then, the market has been rolling downhill. This time, however, the selling was not accompanied by heavy volumes.

Much of the damage has been caused by a lack of buying interest. The Sensex
finally closed the week below its 200-day moving average (DMA) at 16,737, down 5% over previous Friday’s close.

On the weekly chart, the Sensex has made an “engulfing bearish” pattern and the stochastic oscillator has also given a ‘sell’ signal. Thus, we may see further weakness in the market. In the coming days, it can test 16,567 and 16,206, which are 38.20% and 50% retracement levels of the recent bounceback from 14,677 to 17,735. At higher levels, the range between 17,650 and 17,750 will act as a strong resistance in the short term. On the daily chart, the stochastic oscillator has entered the oversold territory.

Thus, some bounce may be witnessed in the next few trading sessions, and the Sensex can rise to 17,000 -17,050. But the strategy should be to exit from long positions and take fresh long positions only if Sensex crosses the upper band.

For longer term, one should not forget that the Sensex had made an “engulfing bearish” pattern on the quarterly chart and the stochastic as well as the RSI oscillators are still giving sell signals. The market is not sustaining comfortably above its 200 DMAs, and most of the sectoral indices like realty, bankex, auto, capital goods and PSU, are also facing heavy resistance near their 200 DMAs like.

Over the past two weeks, many stocks are giving false breakouts, indicating a lack of follow-up buying. This is not a good sign for the market. We are still in the bear market phase and one should consider the recent rally as a bear market rally. Long-term investors should use such rallies as an exit opportunity.


Sector to ‘watch’

The BSE Metal index is showing a lot of strength on the charts. In the coming days, this index can outperform the broader markets and can rise by 8-10%.

Stocks to ‘buy’

Tata Steel: (Rs 841)

Last week, it broke its resistance range of Rs 835-845 with good volumes. We recommend a ‘buy’ with the price target of Rs 950 and a stop-loss of Rs 785.

Sesa Goa : (Rs 4,010)

This is another stock, which can give decent returns from the current levels. Last week, it broke its all-time high of Rs 3,969 and touched Rs 4,400. The target would be around Rs 4,600.

Stocks to ‘sell’

Reliance Industries: (Rs 2,534)

It has broken the support level of Rs 2,556 on Friday. On a bounceback, one can go short in the range of Rs 2,575 to Rs 2,600, with a price target of Rs 2,375 and a stop-loss of Rs 2,701.

Sobha Developers: (Rs 567)

The overall realty sector is looking weak; Sobha has broken its all-time low of Rs 575. This stock can come down to Rs 450. We recommend a ‘sell’ with a stop-loss of Rs 626.

Manas Jaiswal,

Senior Technical Analyst, Emkay Shares & Stock Brokers

SAIL Q4 net rises 25% to Rs 2,377 crore
17 May, 2008, 0301 hrs IST,

NEW DELHI: Steel Authority of India (SAIL) posted 25% increase in net profit to Rs 2,377 crore for the Q4 ended March 31, 2008 as against Rs 1,902 crore during the same quarter an year ago.

Net sales of the public sector steel major stood at Rs 13,551 crore during the quarter as against Rs 9,984 crore in the corresponding period a year ago, an increase of 35.7%.

“Increased production of value-added and special steel, along with measures taken to reduce water and energy consumption, contributed close to 72% of the overall profits. Rest came from price rise,” said SAIL chairman SK Roongta on Friday. He added that the company managed to save Rs 300 crore owing to various cost-cutting measures during the year.

For the fiscal year, the company reported a 21.5% increase in net profit to Rs 7,537 crore as against Rs 6,202 during the previous year. Net sales increased 16.4% to Rs 39,508 crore compared to Rs 33,923 crore in 2006-07.

On the issue of demand-supply gap of steel, Mr Roongta said: “We are conscious of the growing demand-supply mismatch in the sector and have decided to produce additional one million tonne (mt) of steel.” SAIL’s annual saleable steel production is close to 13 mt currently.

The SAIL scrip closed at Rs 185.90, up 7.33%, on BSE on Friday.

While the company’s EBITDA increased by 23.6% to Rs 4,034 crore during the quarter over the previous year, EBITDA margin dipped to 29.7% for the quarter as against 32.6% an year ago.

Despite the fact that prices of cooking coal and iron ore have almost tripled in the last six months, the company’s raw material costs have increased only marginally during the year. SAIL’s raw material costs increased by mere 3% to Rs 12,629 crore during the year as against Rs 12,261 crore in the previous year.

Texmaco Q4 net at Rs 30.48 cr, up 195%
16 May, 2008, 1837 hrs IST, PTI

KOLKATA: K K Birla group company Texmaco Ltd on Friday reported a net profit of Rs 30.48 crore in the quarter ended March, 2008, showing a growth of 195 per cent over the corresponding period last year.

The sales were worth Rs 213.07 crore during the period under review, against Rs 109.85 crore last year.
However, net profit for the entire year 2007-08 was Rs 69.09 crore for the year ended 2007-08, up by 143 per cent over the previous year.

The net sales also scaled up by 81.5 per cent to Rs 693.47 crore during the year. The company recommended a dividend of 75 per cent. Texmaco board also approved stock-spilt of equity share of Rs 10 each into 10 shares of Re 1 each.

US Market
May 20, 2008 3:02PM ET
NASDAQ 2484.66 -31.43 -1.25%
DJIA 12812.8 -215.36 -1.65%

Tata Teleservices Q4 net loss at Rs 20.59 cr

Mumbai, May 21: Telecom company Tata Teleservices (Maharashtra) today posted a net loss of Rs 20.59 crore for the fourth quarter ended March 31.

The company had a net loss of Rs 45.90 crore in the corresponding period a year ago.

Its total income rose to Rs 491.19 crore during the quarter as compared with Rs 390.79 crore in the corresponding period a year ago.

Tata Teleservices reported a net loss of Rs 125.74 crore for the year ended March 31, while it had a net loss of Rs 310.61 crore in the previous fiscal.

The firm`s total income stood at Rs 1,789.60 crore for Financial Year 2007-08 as compared to Rs 1,424.42 crore in Financial Year 2006-07.

Shares of the company closed at Rs 35.95, up 0.28 per cent on the BSE.

Sensex down 188 points in early trade

Mumbai, May 21: The Bombay Stock Exchange benchmark sensex today lost 188 points in early trade on funds selling in heavy-weight stocks, triggered by weak global markets.

The 30-share index, which had lost 204.76 points yesterday, fell further by 188.55 points to 17,041.63 in the first five minutes of trade.

The wide-based national stock exchange index`s nifty moved down by 35.10 points to 5,069.85.

Marketmen said reports of weakening trends in global stock markets after oil prices spiked to a new record of more than 129 dollar a barrel and worries of rising inflation, mainly dampened the trading sentiments here.

At the US stock markets, Dow Jones industrial average plunged 199.48 points, or 1.53 per cent while the tech-heavy Nasdaq composite fell 23.83 points.

Major losers, which dragged the sensex down were Reliance Industries, BHEL, Sterlite Industries, ACC, HDFC Bank, SAIL, State Bank of India, Wipro and Tata Consultancy.

GMR Infrastructure`s board approves amalgamation proposal

Mumbai, May 21: GMR Infrastructure today said the company`s board has approved the amalgamation of GMR Aviation Pvt Ltd with itself.

The Board of Directors have approved the proposal to widen the objects clause of memorandum of association of the company by including the aviation and other businesses, GMR Infrastructure said in a filing to the Bombay Stock Exchange.

These proposals were approved by the Board of Directors during their meeting held today. Shares of the firm closed at Rs 150.95, down 0.72 per cent on the BSE.