Monday, December 15, 2008

Sensex gains 142 pts, realty, metal stocks soar

MUMBAI: The benchmark Sensex on the Bombay Stock Exchange closed at one-month high of 9,832.39 points on Monday on a sharp rally in realty and metal counters after trimming the handsome gains it made in early trading.

The market got a boost on anticipation of a second tranche of fiscal incentives from the government soon and the central bank cutting the key policy rates further.

The Bombay Stock Exchange 30-share barometer ended the day at 9,832.39, up by 143.32 points, or 1.47%, higher from previous close. It was only nearly 50 points short of the psychologically important 10,000 level at intra-day high of 9,948.33.

The 50-share Nifty of the National Stock Exchange also improved by 59.85 points, or 2.05%, to 2,981.20.

Brokers aid another round of rate cut by the US Federal Reserve in its forthcoming meeting helped the market to regain some of its lost ground. Expectations of US government reconsidering the bailout plan for the troubled auto industry also helps, they added.

Strong cues in Asian bourses also bolstered the sentiment here. While Asian indices ended up by about 0.5% to 5.2% on the back of some recovery on Wall Street last weekend, European markets showed signs of stability and were quoted in the green this morning.

Marketmen, however, said concerns over the sharp decline in industrial production by 0.4% in October persisted and hence some investors preferred to play safe by booking profits at every rise.

Realty stocks netted handsome gains with the sectoral index closing higher by 5.53%, followed by metal index at 5.19%. However, IT scrips continued their weakness and the index ended lower by a negligible 0.22%.

Source: http://timesofindia.indiatimes.com/Business/Sensex_ends_higher_realty_metal_soar/articleshow/3839940.cms

Wikipedia needs more contributors from India

CHENNAI: In a bid to bolster user interface, the sixth most popular website in India and the fifth most popular in the world, Wikipedia is ushering in WikiAcademy, a connect between Wiki and its users. The aim: Garner as much contributions for the site from users.

With close to 277 million users visiting it every month, Wikipedia needs more contributors or participants from India, and also the world. Sue Gardner and Jimmy Wales, founder of Wikipedia, were in the city to promote the WikiAcademy, started recently by Kiruba, founder of the Knowledge foundation.

WikiAcademy is a community driven initiative that can be started by anyone. It focuses on teaching people how to edit Wikipedia and all other issues related to the site. Volunteers teach and attend various sessions. This is the only such academy across Asia. Some of the issues raised were regulatory in nature and referred to course of action incase of false information or biased articles.

Wales also said that 'western bias' in the articles (most articles are put up by others) could be controlled only through the creation of a diversity of contributors. He equated the neutrality or balance in the entries in Wikipedia to journalists having to keep a neutral view while writing.

Though Wikipedia needs more participants, a majority of the contributions for it's regional pages like Tamil comes from non-resident Indians. This, Wales says, is due to the fact that they are tech-savvy and have access to broadband internet.

"The core concept behind the WikiAcademy is sharing knowledge, India values education, free speech and Wiki is the definition of free speech, simply because information is available to all," Gardner said. The fact that India values education, knowledge and free speech makes an enormously opportunity for us, said Gardner. The understanding that Wikipedia is not merely for consumption and contributions should be made was the motive behind this WikiAcademy.

"Currently, to edit, a wiki syntax similar to HTML needs to be used which inhibits some people from editing or even bothering. We received a grant of $9,00,000 from the Stanton foundation to make the wiki interface easier," Gardner said.

"We would like to see one billion people on Wikipedia, our aim is to get information to people who don't have access to the internet," said Sue Gardner, executive director of the Wikimedia Foundation. A third of the population should have access to Wikipedia and one out of ten of those users should move to becoming active participants in the process of editing the articles.

Source: http://timesofindia.indiatimes.com/Business/India_Business/Wikipedia_needs_more_contributors_from_India/articleshow/3837038.cms

RIL regains Rs 2 trillion market capitalisation

MUMBAI: The recovery on bourses last week has added over Rs 52,600 crore to market valuations of country's 10 most valued firms, with Reliance Industries gaining the most and regaining the crucial Rs 2 trillion mark.

The combined market capitalisation of the country's top 10 firms-- comprising five pubic sector and five private sector entities-- gained Rs 52,621.06 crore last week at Rs 9,98,374.84 crore at the end of Friday's trading. The combined valuation of the elite club stood at Rs 9,45,753.78 crore a week ago.

After dabbling below the psychological Rs 2 trillion mark for six consecutive weeks, the country's most valued firm Reliance Industries regained its lost turf by adding Rs 29,524 crore to its valuation last week.

Mukesh Ambani-led RIL saw its market capitalisation rising to Rs 2,05,568 crore at the end of Friday's trade against a valuation of Rs 1,76,044 crore a week ago.

The shares of RIL gained nearly 17 per cent in the week to settle at Rs 1,306.20 on last Friday. Since October 24, when the firm had first slipped below the Rs 2,00,000 crore mark, it has gained about 29 per cent to its share price.

Leading cellular operator Bharti Airtel rose to the third place, adding Rs 10,820 crore in a week to its valuation. However, state-run NTPC dropped to the fourth spot despite a gain of Rs 3,092 crore last week.

Public sector ONGC and IT bellwether Infosys Technologies bucked the trend and lost a combined over Rs 3,400 crore. ONGC lost Rs 1,797 crore but kept in tact its second position with a valuation of Rs 138,267 crore.

Infosys' valuation eroded by Rs 1,620 crore and the IT major lost out the seventh slot to ITC.

The Bombay Stock Exchange benchmark Sensex gained 527.45 points last week at 9,690.07 points at the end of Friday's trade.

In the coveted top 10 club, the PSU firms added Rs 11,627 crore last week while the private sector entities witnessed an addition of Rs 40,994 crore.

Country's largest lender State Bank of India added Rs 5,019 crore and retained the fifth slot with its market valuation at Rs 77,116 crore. Mining giant NMDC gained Rs 4,302 crore in the week.

On other hand, the biggest private sector lender ICICI Bank saw its valuation rising Rs 45,805 crore, up by Rs 5,900 crore. Also HDFC Bank saw its valuation rising to Rs 45,805.08 crore, thereby adding Rs 1,331.58 crore during the week.

RIL, the numero-uno in the list of the most valued firm, is followed by ONGC (Rs 2,05,568 crore), Bharti Airtel (Rs 1,37,107 crore), NTPC (Rs 1,36,050.09 crore), SBI (Rs 77,115.70 crore), BHEL (Rs 66,557.59 crore), ITC (Rs 65, 027.45 crore), Infosys (Rs 63,398.65 crore), NMDC (Rs 56,318.56 crore) and HUL (Rs 52,964.11 crore).

Source: http://timesofindia.indiatimes.com/Business/India_Business/Crisis-hit_Yamaha_recalls_India_CEO_Mabuchi/articleshow/3837039.cms

Gain-loss ratio of IPOs in last 5 years at 1:4

Date : Dec-15-2008 Initial public offerings (IPOs) ratio of gain-loss stood at 1:4 in last 5 years as analysis of 257 IPOs, which were launched during the last five years, showed that investors have lost money in the 204, while in balance 53 investors are still in the profit. This is despite the current turmoil in the market, which has shaved about 55% off the BSE Sensex in the last 11 months.
The IPOs showing profit are Educomp Solutions and Indiabulls Financial Services, which have given over 1,000% return since their respective IPOs, after adjusting for bonus, split, demerger of businesses etc. Apart from these two, there are nine stocks, which have at least doubled investors' money since IPO.

ICICI Prudential Income Plan announces change

Date : Dec-15-2008
ICICI Prudential Mutual Fund has declared changes in the institutional plan of ICICI Prudential Income Plan. The fund house announced changes in the minimum application amount under the institutional plan of the scheme. The minimum application amount for all fresh purchases/switches under the scheme will be 25 lacs and in multiples of Re 1 thereafter, effective from 16 December 2008. However the minimum additional purchase amount under the scheme remains unchanged. ICICI Prudential Income Plan (IPIP) is an open-ended debt fund with an object to generate income through investments in debt securities.

Insurance growth may moderate to 20-25%

Date : Dec-15-2008 10:51 Economic slowdown has resulted murkiness over insurance sector too as most of the life insurance players are expecting moderate growth in new business premium collection in the remaining fiscal. According to Max New York Life Insurance Senior Director and CFO Sunil Kakar, the growth in first premium income collection in the remaining five months would moderate on account of negative sentiment across the market.

According to Mr Kakar, most of the insurers receive about 60-70% of the total business in the second half of the year. As a result, the private sector is expected to wrap the year with a growth of somewhere around 20-25% against 40% in the first 7 months of 2008-09.

Presenting the same view SBI Life Insurance Managing Director and CEO has told, the first premium income till November has gone up by 100%. In the remaining months it is likely to moderate. The reason behind this moderate growth according to Kakar is sentiment which is affecting the insurance business. Most of the prospective clients are delaying their buying decision. However, he added that, the insurance is long-term investment and the current crisis would have no impact on the returns on assets. Explaining about the current market situation, th bearish mood of market is expected to be continue for 6-9 months more and it is temporary phase which would be fine in the coming year.

ADAG group Reliance Life Insurance also expects the same growth in new business premium to be around 100% as compared to 200% registered last fiscal. Further, the new business premium of the company has grown over 200% at Rs 2,751 crore (USD 625 million) for the fiscal ended March. Besides, all the private companies'' growth percentages so far are ahead of the estimates for the full year. Nevertheless, in order to meet the current estimates for FY09, private insurance players would have to book residual new premiums (over the period November 2008 to March 2009) which are about 105-150% of new premiums booked year-to-date October 2008. About 40 of annual insurance sales occur in last quarter (January-March) of every year and first half of the year accounts for less than about 40% of annual sales for Indian insurance industry.

Market extended gains on firm Asian Stocks. Sensex hovering around 9,800 mark

Date : Dec-15-2008 13:41 Indian bourses indices continue extending last weeks gains on firm Asian stocks. Expectation of second phase of stimulus package from the government and additional interest rate cuts by the central bank to support the domestic economy from the global economic recession, boosting moral of the investors. On account of weak industrial output data for Oct’08 has raised expectations of new policy from the government and RBI to shield the domestic economy. In addition to this, firm Asian Stocks movement and buying by foreign funds paved support to domestic bourses.

Moreover, the White House said that, the administration would consider using part of the Treasury''s USD 700 billion bailout package for financial institutions to keep the Big 3 automakers afloat after an autos bailout bill failed in the Senate.

On the sectoral front, all indices are trading in green. Banking stocks gained on hopes of further rate cuts by the central bank in order to sustain the growth momentum of the economy. Further, IT stocks grew as a rally in ADRs was seen on December 12, 2008. Realty stocks rose on hopes housing demand will improve on expectation of special home loan package from the state-owned banks. In line with this, Consumer Durables stocks grew on hopes of further rare cuts that will in turn boost the demand for goods.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of 2,371 stocks traded so far, 1,785 shares advanced while 507 shares declined. Nearly 79 shares are unchanged.

At 1.30PM, the BSE Sensex is trading higher by 125.13 points at 9,815.20 and NSE Nifty is up by 55.80 points at 2,977.15.

The BSE Mid Cap is trading higher by 101.44 points at 3,151.92 and Small cap is trading up by 108.32 points at 3,639.28.

Gainers from the BSE Sensex Pack are Hindalco higher by (7.56%) at Rs.56.90 along with Tata Steel by (7.39%) at Rs.234.00, Grasim Industries Ltd by (6.93%) at Rs.1,148.00, Sterlite Ind by (5.17%) at Rs.308.00, ONGC by (3.95%) at Rs.672.00, Mahindra & Mahindra by (3.77%) at Rs.304.00 and Bharti Airtel by (2.54%) at Rs.740.65 among others.

The BSE Metal index is higher by 278.23 points or (5.28%) at 5,543.36. Stocks trading higher are Welspun Gujarat up by (12.05%) at Rs.110.65, Steel Authority of India by (9.81%) at Rs.87.85, Hindalco by (7.56%) at Rs.56.90, Tata Steel by (7.39%) at Rs.234.00 and Sesa Goa by (7.28%) at Rs.84.00 among others.

The BSE Realty index is higher by 96.23 points or (4.52%) at 2,224.41. Stocks trading higher are Ansal Infra up by (14.52%) at Rs.34.70, Orbitco by (13.23%) at Rs.61.20, Housing Dev by (13.03%) at Rs.123.20, Unitech by (10.79%) at Rs.38.00 and Indiabulls Realty by (9.43%) at Rs.138.15 among others.

The BSE Bankex index is higher by 115.63 points or (2.28%) at 5,178.88. Stocks trading higher are Indus Ind by (13.57%) at Rs.38.50 along with Indian Overseas by (4.58%) at Rs.71.90, Federal Bank by (3.89%) at Rs.144.20, Kotak Bank by (3.83%) at Rs.387.35 and Yes Bank by (3.25%) at Rs.76.15 among others.