NSE/BSE STOCK MARKET TIPS

DLF buys back 2.5 lakh shares on opening of offer
19 Oct, 2008.

NEW DELHI: Country's largest real estate firm DLF bought about 2.5 lakh shares worth about Rs 7.6 crore on the first day on Friday from the open
market under the buyback offer.

The company purchased 2.5 lakh shares at an average price of Rs 304.19 per share, DLF said in a communique to the National Stock Exchange.

The company has bought back about 1.5 lakh shares from the NSE, while it purchased one lakh shares from the BSE, it added.

DLF today kicked off its Rs 1,100 crore offer to buyback 2.2 crore shares at a face value of Rs 2 each from the open market.

The company has appointed JM Financial Services and DSP Merrill Lynch as its brokers for placing orders on the bourses.
However, the offer failed to boost the company's share prices as the scrip fell by 10.34 per cent to close at Rs 291.30. It had closed at Rs 324.90 per share yesterday.

In July, the company had announced its plan to buy back shares from open market at a price not exceeding Rs 600 a share. Post-buy back, the shareholding of the promoters would increase from 88.16 per cent to 89.32 per cent.

The offer would end on July 9 next year. However, the board in its absolute discretion may decide to close the buy back at an earlier date, if the minimum offer shares have been purchased under the buy back, even if the maximum offer size has not been reached or the maximum offer shares have not been bought back.

Top 10 cos lose Rs 94kcr in a week; SBI defies trend
19 Oct, 2008.

MUMBAI: With stock markets continuing their downslide, the country's elite club of most valued firms lost over Rs 94,000 crore in a week, though S
BI defied the trend and added nearly Rs 4,000 crore to its market capitalisation.

The combined market capitalisation of the country's top 10 firms saw an erosion of Rs 94,448 crore in the past week, dropping to Rs 10,44,245 crore at the end of trading on Friday last week from the previous week's Rs 11,38,734 crore.

Country's largest lender State Bank of India defied trend in the falling market and gained Rs 3,923 crore to Rs 89,768 crore. Last week witnessed banking stocks mostly trading in the negative territory, while SBI outperformed its peers and managed to increase its market capitalisation.

Analysts believe SBI's strong fundamentals support the better performance of its shares amid the bearish market conditions.

However, country's largest private sector lender ICICI Bank, which slipped from the top-20 club last week and lost its position to the HDFC Bank, has regained its position.

While ICICI Bank's market capitalisation rose to Rs 43,606 crore last week from Rs 40,532 crore previously, HDFC Bank's valuation took a marginal dip to Rs 43,533.39 crore.

Country's most valued firm Reliance Industries suffered the highest fall in its market capitalisation of Rs 34,898 crore during the past week. However, the Mukesh Ambani-led firm retained its numero-uno position with a valuation of Rs 2,05,418 crore last week.

Top 10 cos lose Rs 94kcr in a week; SBI defies trend
19 Oct, 2008.

MUMBAI: With stock markets continuing their downslide, the country's elite club of most valued firms lost over Rs 94,000 crore in a week, though S
BI defied the trend and added nearly Rs 4,000 crore to its market capitalisation.

The combined market capitalisation of the country's top 10 firms saw an erosion of Rs 94,448 crore in the past week, dropping to Rs 10,44,245 crore at the end of trading on Friday last week from the previous week's Rs 11,38,734 crore.

Country's largest lender State Bank of India defied trend in the falling market and gained Rs 3,923 crore to Rs 89,768 crore. Last week witnessed banking stocks mostly trading in the negative territory, while SBI outperformed its peers and managed to increase its market capitalisation.

Analysts believe SBI's strong fundamentals support the better performance of its shares amid the bearish market conditions.

However, country's largest private sector lender ICICI Bank, which slipped from the top-20 club last week and lost its position to the HDFC Bank, has regained its position.

While ICICI Bank's market capitalisation rose to Rs 43,606 crore last week from Rs 40,532 crore previously, HDFC Bank's valuation took a marginal dip to Rs 43,533.39 crore.

Country's most valued firm Reliance Industries suffered the highest fall in its market capitalisation of Rs 34,898 crore during the past week. However, the Mukesh Ambani-led firm retained its numero-uno position with a valuation of Rs 2,05,418 crore last week.

India's Subbarao Is Ready for `Swift' Steps to Boost Liquidity

By Shobhana Chandra

Oct. 11 (Bloomberg) -- Indian central bank Governor Duvvuri Subbarao said he's prepared to take ``effective'' steps to maintain liquidity in the nation's credit markets and repeated the bank's policy of smoothing swings in the currency.

We ``stand ready to take appropriate, effective and swift action'' to provide liquidity, he told reporters yesterday in Washington, where he was attending a meeting of Group of 20 finance ministers and central bankers. He said India's economy is ``strong'' and its banks are ``sound'' and ``well capitalized.''

India yesterday made the steepest cut since 2001 in the amount of cash lenders must set aside as reserves to kick-start the $1.2 trillion economy, as the rupee plunged to an all-time low and overseas investors dumped emerging-market stocks. The drop in the cash-reserve ratio followed a reduction on Oct. 6.

Subbarao, 59, declined to comment on interest-rate policy, saying that ``all variables are up for review'' at the Reserve Bank of India's Oct. 24 policy meeting. While the latest figures on inflation are ``quite comforting,'' it is ``still too early to let the vigil slip'' on prices, he said.

India's inflation has slowed to a 15-week low of 11.8 percent, according to the latest government figures, though it is still more than double the central bank's target.

Steps taken so far to improve liquidity in the Indian financial system amount to as much as $22 billion, Subbarao said.

The governor also said that in the medium term, India's rupee ``should be determined by market fundamentals.'' The RBI's policy, to ``manage exchange-rate volatility'' rather than take a view on its level, ``should continue to serve us well,'' he said.

`Knock-On Effect'

Indian markets are experiencing a ``knock-on effect'' from the global financial crisis, because the country's banks have no direct exposure to U.S. sub-prime mortgages, Subbarao said. The RBI's priorities include ``managing inflation while maintaining the growth momentum,'' and financial stability has become another objective over the last three months, he said.

Subbarao this week rushed to free up cash after money-market rates surged to an 18-month high and financial stocks slumped. ICICI Bank Ltd., the Indian lender with the biggest losses on overseas investments, dropped by a record on Oct. 10, forcing the bank to reiterate it had sufficient funds.

Some economists predict the RBI may follow central banks worldwide and cut interest rates as inflation pressures ease and the worsening global crisis begins to weaken economic growth.

``India has been cautious in its reaction until now,'' Swaminathan Aiyar, a Cato Institute research fellow with a focus on Asia, said in Washington. ``Subbarao clearly believes in balance'' between the policy objectives of growth and inflation. ``A rate cut is coming.''

Rescue Plans

Subbarao, who took over as RBI governor a month ago, said the problems and perspectives of countries directly affected by the global financial crisis are ``quite different'' from those of nations like India that are affected indirectly.

Relief and rescue plans announced by advanced countries so far don't include components in which peripheral countries such as India could participate, he said.

Still, India would ``hope to be included and involved in the design and implementation'' of such an effort, should there be a need, he said.

To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net
Last Updated: October 11, 2008

India's Subbarao Is Ready for `Swift' Steps to Boost Liquidity

By Shobhana Chandra

Oct. 11 (Bloomberg) -- Indian central bank Governor Duvvuri Subbarao said he's prepared to take ``effective'' steps to maintain liquidity in the nation's credit markets and repeated the bank's policy of smoothing swings in the currency.

We ``stand ready to take appropriate, effective and swift action'' to provide liquidity, he told reporters yesterday in Washington, where he was attending a meeting of Group of 20 finance ministers and central bankers. He said India's economy is ``strong'' and its banks are ``sound'' and ``well capitalized.''

India yesterday made the steepest cut since 2001 in the amount of cash lenders must set aside as reserves to kick-start the $1.2 trillion economy, as the rupee plunged to an all-time low and overseas investors dumped emerging-market stocks. The drop in the cash-reserve ratio followed a reduction on Oct. 6.

Subbarao, 59, declined to comment on interest-rate policy, saying that ``all variables are up for review'' at the Reserve Bank of India's Oct. 24 policy meeting. While the latest figures on inflation are ``quite comforting,'' it is ``still too early to let the vigil slip'' on prices, he said.

India's inflation has slowed to a 15-week low of 11.8 percent, according to the latest government figures, though it is still more than double the central bank's target.

Steps taken so far to improve liquidity in the Indian financial system amount to as much as $22 billion, Subbarao said.

The governor also said that in the medium term, India's rupee ``should be determined by market fundamentals.'' The RBI's policy, to ``manage exchange-rate volatility'' rather than take a view on its level, ``should continue to serve us well,'' he said.

`Knock-On Effect'

Indian markets are experiencing a ``knock-on effect'' from the global financial crisis, because the country's banks have no direct exposure to U.S. sub-prime mortgages, Subbarao said. The RBI's priorities include ``managing inflation while maintaining the growth momentum,'' and financial stability has become another objective over the last three months, he said.

Subbarao this week rushed to free up cash after money-market rates surged to an 18-month high and financial stocks slumped. ICICI Bank Ltd., the Indian lender with the biggest losses on overseas investments, dropped by a record on Oct. 10, forcing the bank to reiterate it had sufficient funds.

Some economists predict the RBI may follow central banks worldwide and cut interest rates as inflation pressures ease and the worsening global crisis begins to weaken economic growth.

``India has been cautious in its reaction until now,'' Swaminathan Aiyar, a Cato Institute research fellow with a focus on Asia, said in Washington. ``Subbarao clearly believes in balance'' between the policy objectives of growth and inflation. ``A rate cut is coming.''

Rescue Plans

Subbarao, who took over as RBI governor a month ago, said the problems and perspectives of countries directly affected by the global financial crisis are ``quite different'' from those of nations like India that are affected indirectly.

Relief and rescue plans announced by advanced countries so far don't include components in which peripheral countries such as India could participate, he said.

Still, India would ``hope to be included and involved in the design and implementation'' of such an effort, should there be a need, he said.

To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net
Last Updated: October 11, 2008

India's Subbarao Is Ready for `Swift' Steps to Boost Liquidity

By Shobhana Chandra

Oct. 11 (Bloomberg) -- Indian central bank Governor Duvvuri Subbarao said he's prepared to take ``effective'' steps to maintain liquidity in the nation's credit markets and repeated the bank's policy of smoothing swings in the currency.

We ``stand ready to take appropriate, effective and swift action'' to provide liquidity, he told reporters yesterday in Washington, where he was attending a meeting of Group of 20 finance ministers and central bankers. He said India's economy is ``strong'' and its banks are ``sound'' and ``well capitalized.''

India yesterday made the steepest cut since 2001 in the amount of cash lenders must set aside as reserves to kick-start the $1.2 trillion economy, as the rupee plunged to an all-time low and overseas investors dumped emerging-market stocks. The drop in the cash-reserve ratio followed a reduction on Oct. 6.

Subbarao, 59, declined to comment on interest-rate policy, saying that ``all variables are up for review'' at the Reserve Bank of India's Oct. 24 policy meeting. While the latest figures on inflation are ``quite comforting,'' it is ``still too early to let the vigil slip'' on prices, he said.

India's inflation has slowed to a 15-week low of 11.8 percent, according to the latest government figures, though it is still more than double the central bank's target.

Steps taken so far to improve liquidity in the Indian financial system amount to as much as $22 billion, Subbarao said.

The governor also said that in the medium term, India's rupee ``should be determined by market fundamentals.'' The RBI's policy, to ``manage exchange-rate volatility'' rather than take a view on its level, ``should continue to serve us well,'' he said.

`Knock-On Effect'

Indian markets are experiencing a ``knock-on effect'' from the global financial crisis, because the country's banks have no direct exposure to U.S. sub-prime mortgages, Subbarao said. The RBI's priorities include ``managing inflation while maintaining the growth momentum,'' and financial stability has become another objective over the last three months, he said.

Subbarao this week rushed to free up cash after money-market rates surged to an 18-month high and financial stocks slumped. ICICI Bank Ltd., the Indian lender with the biggest losses on overseas investments, dropped by a record on Oct. 10, forcing the bank to reiterate it had sufficient funds.

Some economists predict the RBI may follow central banks worldwide and cut interest rates as inflation pressures ease and the worsening global crisis begins to weaken economic growth.

``India has been cautious in its reaction until now,'' Swaminathan Aiyar, a Cato Institute research fellow with a focus on Asia, said in Washington. ``Subbarao clearly believes in balance'' between the policy objectives of growth and inflation. ``A rate cut is coming.''

Rescue Plans

Subbarao, who took over as RBI governor a month ago, said the problems and perspectives of countries directly affected by the global financial crisis are ``quite different'' from those of nations like India that are affected indirectly.

Relief and rescue plans announced by advanced countries so far don't include components in which peripheral countries such as India could participate, he said.

Still, India would ``hope to be included and involved in the design and implementation'' of such an effort, should there be a need, he said.

To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net
Last Updated: October 11, 2008

Analysts' picks: NTPC
4 Oct, 2008.

CMP: Rs 171.85
Target price: Rs 208

Goldman Sachs Research has initiated coverage on the stock with a ‘buy’ rating, saying NTPC’s business model entails a high degree of earnings visibility with core business consistently yielding 20% plus return on equity (RoE).

“NTPC scores well as a defensive growth option. It has the lowest risk to funding amongst its peers, competitive cost of generation, RBI guarantee for payment realisation from its customers (financially-constrained SEBs) up to FY2016 and inexpensive valuations,” said Goldman Sachs Research in a note to its clients.

The firm expects the company’s net profit to grow at a compounded annual rate of 7.3% between FY2008 and FY2011E (estimated) on the back of a 30% growth in wholly-owned commercial generation capacity over this period.

“Net income growth would rise progressively over the next three years, as we expect around 45% of the 7,760MW of commercial capacity addition over this period only in FY2011E,” the note said.

Analysts' pick: IVRCL
4,Oct, 2008

IVRCL
CMP: Rs 235.05
Target price: Rs 308

Broking house Prabhudas Lilladher has maintained its ‘buy’ rating on the stock saying the stock is attractively valued at 14.5 times FY09 (estimated) earnings and 11.2 times FY10E earnings at the current market price.

“We expect the company to register a CAGR (compound annual growth rate) of 32% and 25% in revenues and PAT (profit after tax), respectively, for FY08-10(estimated),” said the broking house in a note to its clients.

According to the broking outfit, a substantial order book growth would be the primary driver of revenues for the company.

“The order book as on May 2008 stood at Rs 12,200 crore (year on year growth of 71%) as against Rs 7,100 crore. On account of focus on cash contracts, IVRCL enjoys a healthy order book position amongst the peers,” the note said.

IVRCL has improved upon its Sales/WC (working capital) ratio at 1.9 times as against 1.7 times in FY07 and is expected to maintain the same, says the broking house. “We believe that NWC (net working capital) position in future will depend upon order intake and projects reaching revenue reorganisation level,” the note added.