Market Buzz, Gossips

[rajeshn2007]

Elnet Tech hits bulls eye on order-win talk.

SHARES of Chennai-based Elnet Technologies have been riding high in recent weeks on buzz that the companys subsidiary ETL Infrastructure Services may bag a few contracts in the construction of the 45-km twin corridor metro rail corridor project.

The estimated cost of this project is Rs 14,600 crore including escalation, central taxes and interest during the period of construction, but excluding state taxes and value of vacant state government land. Because of its experience in such projects, market players are expecting the company to bag the order for at least one corridor.

 

[rajeshn2007]

THE Sebi is planning to introduce lot sizes for equity derivatives contracts, based on the price range of the underlying stock.
Currently, the value of derivatives contracts, except mini-contracts, cannot be less than Rs 2 lakh. Value of the contract is computed by multiplying the stock price with the number of shares, so that it amounts to Rs 2 lakh.
For instance, if the price of stock X is Rs 50, then one futures contract of X will comprise of 4,000 shares. While the stock price keeps fluctuating on a regular basis, there is no standard procedure for reviewing the lot size, at present. For instance, if the stock price of X doubles to Rs 100, and the lot size for the futures contract remains at 4,000 shares, an investor wanting to buy one futures contract will now have to shell out Rs 4 lakh.

According to an official familiar with the development, there will be different lot sizes 100, 200, 400, 800, 1,600 and so on. Take for instance, if the price band is Rs 50-100, then all the stocks falling under this band would have a lot size of 2,000 or 4,000.

Currently, there are over 100 different denominations of lot sizes, which is confusing for traders.

 

[vijayvaliya]

hi rajesh,

good work, thank you, expecting more such pieces of information from you.

vijay

 

[rajeshn2007]

Hi vijayvalia,
thanks. as you have said these are just 'pieces of information', gathered here and there.
let us make 'some' use of it

 

[rajeshn2007]

The finance ministry has asked the steel ministry to give by November 5 its views on the proposed 15% disinvestment in mining PSU NMDC, which could fetch the government over Rs 18,000 crore.

At present, the steel ministry is studying the proposal sent by the disinvestment department and will forward its suggestions, if any, before the stipulated time, he added.

Another official in the ministry ruled out a follow-on public offer (FPO) by the company along with the proposed disinvestment. NMDC does not need money at present, so a FPO is ruled out, he added.

Going by NMDCs current share price, the government could raise around Rs 18,000 crore through disinvestment, which may well be the largest stake sale this fiscal, in terms of revenue to the exchequer, and would aid in financing partly its social sector programmes.

With the disinvestment department recommending 15% stake sale in NMDC, the governments equity in the company is set to fall from 98.38% to 83.38%. Currently, institutional investors hold 1.62% stake in the firm.

 

[vijayvaliya]

Hi vijayvalia,
thanks. as you have said these are just 'pieces of information', gathered here and there.
let us make 'some' use of it

hi rajeshji,

It is not 'some', sometimes we can make 'most' of it

 

[rajeshn2007]

DESPITE posting poor numbers for the September quarter, shares of Jet Airways were in demand on Wednesday. The stock was the best performer in the A group, rising 9% to close at Rs 398, supported by heavy volumes. In the last one month, the stock has gained around 22%. Players tracking the counter say that earnings for the current quarter are expected to be good because of the vacation season.

Also, most of the negatives are already reflecting in the current price, they say. Buzz is that one of the domestic mutual funds, which already has a stake in the company, has been adding to its position over the past few sessions. In addition, a South-based mutual fund too has begun accumulating the stock.

The company is awaiting approval the FIPB to raise up to $400 million through an equity offering to domestic and foreign investors.

the stock was up 7% today, despite the market crash of 500 points

 

[AW10]

THE Sebi is planning to introduce lot sizes for equity derivatives contracts, based on the price range of the underlying stock.
Currently, the value of derivatives contracts, except mini-contracts, cannot be less than Rs 2 lakh. Value of the contract is computed by multiplying the stock price with the number of shares, so that it amounts to Rs 2 lakh.
For instance, if the price of stock X is Rs 50, then one futures contract of X will comprise of 4,000 shares. While the stock price keeps fluctuating on a regular basis, there is no standard procedure for reviewing the lot size, at present. For instance, if the stock price of X doubles to Rs 100, and the lot size for the futures contract remains at 4,000 shares, an investor wanting to buy one futures contract will now have to shell out Rs 4 lakh.

According to an official familiar with the development, there will be different lot sizes 100, 200, 400, 800, 1,600 and so on. Take for instance, if the price band is Rs 50-100, then all the stocks falling under this band would have a lot size of 2,000 or 4,000.

Currently, there are over 100 different denominations of lot sizes, which is confusing for traders.

I think, NSE / BSE do perform periodic review of the lot size.
It is not going to be as simple as determining the band based on stocks daily price.
What if during the month, stock price jumps to next higher band, will it invalidate all contracts bought at the start of the month ?
When dealing with F&O, we are dealing in a contract.. and the contents of contract have to be fronzen for the term of contract.

And we also have contracts expiring in 3 months, to make things a bit more complicated.

I think, even in other mkt, the value of contract does not dependent on current mkt price. I haven't come across news that says Oil contract has been changed because price fell from 147 to 30 $. Or S&P Emini lot has changed cause index came down by 50%.

Anyway, lets wait for the details.

 

[rajeshn2007]

Hi AW10,
i think sebi is trying to bring in mini lot sizes for stock futures, like the mini nifty.
buzz is they may have more than one lot size per stock future. let us wait and see.

 

[rajeshn2007]

BEARS are said to be readying for another attack on Suzlon. In March this year, they had almost driven the company to bankruptcy by wrecking the stock price. The disappointing earnings performance of the company during the September quarter appears to have emboldened the bears for a renewed offensive.

The buzz is that short-sellers are not counting on weak earnings alone. They appear to be convinced that there is some other news as well in the offing. Suzlon shares closed at Rs 58.25 on Tuesday, down 13% over the previous close. The stock is already down nearly 60% from its high of Rs 145 seen in June this year.