EMPLOYEES OF TARA JEWELS HAVE NO FAITH IN ITS IPO

Tara Jewels IPO managed to sail through on the last day. Over all it got 1.98 times subscription. However out of the 79777 shares reserved for the employees, the company received bid for just 11000 shares or 14% of the shares reserved.

IPO ANALYSIS: TARA JEWELS LIMITED – OVER PRICED – AVOID

Tara Jewels IPO in the price band of Rs 225-230 closes today.  The issue comprises of offer for sale for Rs 70cr and fresh issue of equity shares with premium to the extent of Rs 150 cr.  The company intends to utilize Rs 50 cr for repayment of loans, Rs 34cr for general corporate expenses and the balance amount of Rs 64cr for establishing new retail stores. The IPO carries grade 3 awarded by CARE. Enam and ICICI Securities are the BRLM s to the issue. Although the company has reported consistent growth in revenue and profitability in the past, the premium sought for the shares are on the very high side. The fair value for the IPO shares is around Rs 150. 

   

AVOID SUBSCRIPTION TO THE IPO.

JP MORGAN AND CREDIT SUISSE SETTLE CHARGES WITH SEC

For misleading the investors, JP Morgan Chase and Credit Suisse have agreed to pay $417m to settle charges, in residential mortgage-backed securities offerings.

Both banks agreed to settle without admitting or denying the charges.The SEC will distribute the money to harmed investors.

STOCK WATCH : UNITED SPIRITS - SELL CMP RS 1850.

United Spirits is the only stock that is trading beyond 100 PE multiple among the NIFTY Junior. The stock has risen more than 40% in the last couple of trading sessions, after Diageo deal was concluded. For the latest quarter the company reported a net of Rs 39cr on an equity of Rs 131Cr, giving an EPS of Rs 3. Although stake sale and subsequent open offer by Diageo group to acquire further 26% makes qualitative difference, the stock has risen mostly because of speculative interest. The stock has already surpassed the one year re rating target in just 4 trading sessions. That is something unusual. This kind of spurt in price is unlikely to sustain for long. More over the open offer price at Rs 1440. Investors can sell at current level and can re enter later.

MARKET TO DEFY GLOBAL TREND

Our market is expected to defy the global trend. Indices across globe yesterday closed in the negative territory. Cooling oil prices in international market has made the OMCs to reduce the petrol prices by Rs 0.95 from last midnight. CRISIL too opined that central bank may go rate cut in its Jan policy review as the WPI has started sliding down. RIL which has second highest weight-age after ITC in the indices has received approval from DCH for drilling oil wells in D-19. The stock which was beaten down recently for political reasons may see re rating by brokerage houses. Most importantly FIIs have not lost faith in our market despite some slow down. All these factors may help the indices to close in green today defying the global trend.

DELL'S REVENUE DIPS

World's third-largest maker of personal computers Dell saw overall revenues dip 11% for the July-Sept quarter. Dell's consumer revenues fell 23% to $2.5bn, while corporate sales declined by 8% to $4.2bn.
The group made a net profit of $475m  in July to September, compared with $893m a year earlier.
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WAL-MART SALES, PROFIT RAISES MARGINALLY

World's biggest and largest retailer net sales in the three months to 31 October rose 3.4% from a year earlier to $113bn. Sales in Japan and China fell as expected.

Despite this, net profits were $3.6bn, up 9%, meeting expectations.

DGH APPROVES RIL'S D-19 GAS FIELD, STOCK TO BOUNCE BACK TOMORROW

Director General of Hydrocarbons has given nod to Reliance Industries to drill a well as part of the Rs 8000cr plan to develop four satellite gas fields around the now flagging main fields in the eastern offshore KG-D6 block.

D-19 is one of the four satellite gas field whose optimized field development plan was approved in January this year. RIL has till date made 18 gas and one oil find in the KG-DWN-98/3 or KG-D6 block in the Bay of Bengal. Of these, Dhirubhai 1 and 3, the largest of the 18 gas finds were put on production in April 2009. RIL stock closed at Rs 786, down Rs 3 in today's trading. Out of the 35 lacs shares traded today, 73 percent are marked for delivery, indicates a strong bounce back by the stock in the next trading sessions.

SELLING BY DOMESTIC INSTITUTIONS PULLS DOWN INDICES

Indices are down for the fifth consecutive day. NIFTY has lost 36 points today and 129 points in the last five trading days. Today's fall was fueled by global cues and selling by domestic financial institutions. They have net sold to the extent of Rs382Cr in cash market. Negative growth / contraction in euro zone and U S fiscal cliff challenges are weighing heavily on the markets. A kind of pessimism has set in. Although there is slowdown in some specific segments in India overall  growth prospects and fundamentals remain strong. But in the short term sentiments and news flows that dictate directions to markets. Metals, cement, auto, real estate, FMCG and Pharma stocks dragged the indices today. Irrespective of global trend our markets are likely to open and close in green tomorrow.

DLF TO SELL OFF HOTEL AND POWER ASSETS

DLF is likely to garner Rs 2700 Cr from selling off its hotel chain Aman Resorts and wind power assets. The funds so generated will be used for reducing the debt which is in excess of Rs 20000Cr.

INFLATION EASES IN OCTOBER

Some good news for stock market and banking stocks. The WPI Inflation for the month of October stood at 7.45 percent compared to 7.96 percent in September and 8.01 percent in August. The declining numbers may force the central bank to cut policy  rates in its policy review meet in January next year. Markets will take this news positively today.

INTEREST COST INCREASES GMR'S LOSS

With  around Rs 35000cr debt GMR Infrastructure could be the next big ticket CDR candidate. The infrastructure developer, has posted a close to three times increase in net loss at Rs 179 crore for the second quarter ended September 30, 2012, as compared to net loss of Rs 62.5 crore for the corresponding period of last fiscal. Income from operations moved up marginally at Rs 2,398 crore.

The company, which has been in the red for the past many quarters, has said that the loss during the current quarter is due to the fact that there was a onetime foreign exchange gain of Rs 51 crore during the corresponding previous quarter. The loss of such a gain was compounded by the increase in expenditure and interest cost.

RIL BUYS BACK SHARES WORTH RS 3080CR

RIL has bought back  4,26,25,768 equity shares amounting to Rs 3080cr as on 12-11-12. Citigroup Global Markets and DSP Merill Lynch are the managers to the buy back programme.

L&T FINANACE HOLDINGS DAZZLES IN MUHURAT TRADING

L&T Finance Holdings stock has dazzled in Muhurat trading. The stock gained Rs11.60 to close at Rs 83.15. We have been recommending this stock from Rs 44 level. This stock will out perform the indices in the next one year, even from today's level. It will cross Rs 100 level shortly.

HERO SELLS 1LAC BIKES ON DHANTERAS

HeroMotoCorp has sold 1,00,000 bikes on the auspicious Dhantera day. For the whole month of October 2012 the company had sold 5.29lac bikes.

APPLE MOST INNOVATIVE COMPANY, THIRD TIME IN A ROW

Apple was named number one in a new annual survey of the top 10 most innovative companies, third time in a row according to survey conducted by management consulting firm Booz & Company.
 
Google, which took the second spot overall, ahead of 3M, which is at top three. Samsung is at number four on the list.

DLF POSTS LOSS IN Q2 OF FY13

The controversy  ridden real estate major DLF has posted a net loss (stand alone)of Rs19cr for the quarter ended September 30, 2012 as compared to net profit of Rs. 303cr for the quarter ended September 30, 2011. Total Income has decreased from Rs. 1242cr for the quarter ended September 30, 2011 to Rs. 607cr for the quarter ended September 30, 2012.

However on consolidated basis the Group has posted a net profit of Rs. 138cr for the quarter as compared to Rs. 372cr in the same quarter last year. Total Income has decreased from Rs. 2577cr for the quarter ended September 30, 2011 to Rs. 2157cr for the quarter ended September 30, 2012. The stock closed at Rs 205, down Rs 5 in yesterday's trading.

OPTO CIRCUITS POSTS FLAT NET, DESPITE REVENUE INCREASE

Opto Circuits has posted a consolidated net profit of Rs. 16cr for the quarter ended September 30, 2012 as compared to Rs. 121cr for the quarter ended September 30, 2011 despite increase in total income.  Total income for the quarter stood at Rs 604cr as compared to Rs 557 in the same quarter last year. The stock closed at Rs 121, down Rs 3 in today's trading.

DIAGEO DEAL KEEPS MALLYA'S COMPANY IN HIGH SPIRITS

The shares of United Spirits jumped as much as 35 percent today to touch two-year high after many brokerages upgraded the stock, implying that Mallya has sold a stake to Diageo at a higher-than-expected price.

Morgan Stanley raised its rating on United Spirits to 'overweight' from 'equal-weight', saying the $2.1 billion deal priced the company "significantly higher" than its base case value and raised the stock target to Rs 1905.

Diageo last week agreed to buy a 53.4 percent stake in the liquor maker controlled Vijay Mallya by first acquiring 27.4 percent percent from its founders at 1,440 rupees per share, and then launching a mandatory offer for the remainder.

United Spirits shares closed at Rs 1832, up Rs 472 and touched intra day 104 week high of Rs 1875. The trading volumes too was very high.

IIP DATA PARES EARLY GAINS

IIP data which indicated slower recovery made metals, auto, cement and infra stocks to lose grounds. Benchmark indices NIFTY and Sensex were up in early trade snapping last week end's downward trend. However IIP data, particularly inflation numbers were not well taken by the market. NIFTY closed flat at 5684. Metal stocks Tata Steel, Jindal and Hindalco all closed in red. In spite of good October sales number auto stocks ended in red on negative sentiments. Hero, M&M and Maruti closed in negative territory where as Tata Motors closed flat and Bajaj Auto gained Rs8. ACC, Ambuja and L&T closed with minor losses. FIIs net bought to the extent of Rs230cr where as DIIs have net sold for Rs 130cr in cash market.

JAIPRAKASH ASSOCIATES NET NOSE DIVES

JP Associates has posted a net profit of Rs. 128cr for the quarter ended September 30, 2012 as compared to Rs. 249cr for the quarter ended September 30, 2011. Total Income has increased from Rs. 2982cr for the quarter ended September 30, 2011 to Rs. 3027cr for the quarter ended September 30, 2012. The stock closed at Rs 93, up 2% in today's trade.

INDICES TO OPEN AND CLOSE IN GREEN

Festive spirit, FIIs net investing in excess of Rs 3000cr in cash market in the month of November so far, robust auto sales number for October and better numbers for the month of September for industrial and inflation figures will keep the bank, auto and metal stocks busy this week. The negative sentiments that prevailed in U S and Europe markets after Obama's win has also been waned. Hence the I T stocks too are likely to stage smart recovery this week. These factors will help the benchmark indices BSE and NIFTY to open and close in green today and gain substantially over the week.

SUZLON DEBT TO GO FOR CDR, BANKS HAVE TO ULTIMATELY WRITE OFF

Consortium of banks led by SBI is working on a package to restructure the debt of Suzlon which is around Rs 13000cr. 

Suzlon recently manged to get 45 days extension from bond holders from immediate payment. It also failed to redeem FCCB amounting to $220 million last month.

According to our analysis the money lent to Suzlon has almost gone with the wind. It is ironical that company is in to wind energy equipments manufacturing. A debt restructure is warranted when due to external reasons the cash flow of the company has been temporarily affected, wherein the company has cash generating assets and  sound business model. In case of Suzlon we do not see none of this. Hence for all practical purposes the money lent to Suzlon is gone with the wind.

LANCO INFRA LOSS WIDENS

Power to EPC to real estate to infra diversified Lanco Infratech has reported a consolidated loss of Rs 260 crore(stand alone) for the September quarter.

The entity, whose debt may go for CDR( Rs 32,700-crore debt) has been struggling for the last few quarters with low revenue generation from real estate & infra and sub optimal operating performance from power plants. The rupee one face value stock closed at Rs 12 on the exchanges on Friday. The stock has lost more than 50% in the last one year.

AUTO SALES ZOOM IN OCTOBER

Demand for all types of vehicles has been picked up in October 2012. Sales in October was the highest since Jan 2011, according to SIAM. Due to sluggish demand auto stocks were subdued in the last two months. October sales figures are likely to get re rating and buying recommendations from brokerage and investment houses.

	OCTOBER 2012 (NO. UNITS SOLD)	SEPTEMBER        2012	VARIATION (PERCENTAGE)
PASSENGER CARS	172459	140105	23
TWO WHEELERS	1285015	1144716	12
THREE WHEELERS	55241	49069	13
TOTAL PASSENGERS VEHICLES	246725	184611	34
TOTAL COMMERCIAL VEHICLES	66722	62013	8
EXPORTS	234638	230153	2
TOTAL PRODUCTION (ALL VEHICLES)	1829490	1596500	14

SOURCE- SIAM

COAL INDIA'S REVNUE, NET UP IN Q2

Coal India has reported a 18.7 per cent jump in consolidated net profit at Rs 3,078cr for the second quarter ended September 30. The figures for the same period last fiscal stood at Rs 2,593cr..

Net sales were up by 10 per cent at Rs 14,572.54 crore during the period.

MCX AT NEW HIGH

MCX which will start trading in equities shortly has hit 52 week high of Rs 1515. The company came public in Feb this at a price of Rs 1032. First Choice IPO had strongly recommended to the IPO and accumulation after listing.

UNITED BREWERIES NET UP, STOCK AT 52 WEEK HIGH

United Breweries has posted a net profit of Rs. 34cr for the quarter ended September 30, 2012 where as the same was at Rs. 20cr for the quarter ended September 30, 2011. Total Income is Rs. 875cr for the quarter ended September 30, 2012 where as the same was at Rs. 751cr for the quarter ended September 30, 2011. The stock hit 52 week high of Rs 820 and now trading around Rs 800.

SBI NET UP, STOCK DOWN 4%

SBI has posted a net profit of Rs. 3658cr for the quarter ended September 30, 2012 as compared to Rs. 2810cr for the quarter ended September 30, 2011. Total Income has increased from Rs. 29394cr for the quarter ended September 30, 2011 to Rs. 32953cr for the quarter ended September 30, 2012. However the stock is down 4% and trading at Rs 2155.

CORP BANK POSTS FLAT PROFIT

Mangalore based public sector Corporation Bank has posted a net profit of Rs. 405cr million for the quarter ended September 30, 2012 as compared to Rs. 401cr for the quarter ended September 30, 2011. Total Income has increased from Rs. 3480cr for the quarter ended September 30, 2011 to Rs. 4070cr for the quarter ended September 30, 2012. The stock is up Rs 1.50 and trading around Rs 406, where as the bench mark indices Sensex is down 80 odd points, as of now.

INFLATION EASES IN CHINA

Inflation in the world's second-biggest economy has been eased to its slowest pace in nearly three years in October, giving policymakers scope to further loosen monetary policy if needed to support growth.

RIL SELECTS FOSTER WHEELER

Reliance Industries has Selected Foster Wheeler For Its Para xylene Project In Jamnagar in Gujarat.   Foster Wheeler is a global engineering and construction company and power equipment supplier, with a reputation for delivering high quality, technically advanced, reliable facilities and equipment on time.

MARKET TO OPEN WITH MINOR LOSS, RECOVER BY CLOSE

Global cues, sentiments may lead to weak opening. However indices are likely to recover by close.   Auto, I T and private sector bank stocks will be in limelight. Due to strong sales  numbers in October and in the current month Hero nad Bajaj Auto may scale to higher level. Since both FIIs and DIIs have net bought in cash market yesterday, bench mark indices may post reasonable gains by close.

FORTHCOMING IPO : SMC GLOBAL SECURITIES

NAME OF THE  COMPANY	SMC GLOBAL SECURITIES LIMITED
PROMOTERS	SUBHASH CHAND AGGARWAL, MAHESH CHAND GUPTA, SUSHMA GUPTA AND DAMODAR KRISHAN AGGARWAL
ISSUE SIZE	PUBLIC ISSUE OF 1,58,67,380 EQUITY SHARES OF FACE VALUE OF RS 2 EACH
BRLM	TATA SECURITIES, IL&FS CAPITAL ADVISORS
REGISTRAR	LINK  INTIME

IKEA'S RS 10,500CR FDI PROPOSAL MAY GET NOD

The government is likely to clear the proposal of Swedish home furnishing major IKEA, which has sought approval to invest Rs 10,500 crore to set up single- brand retail stores in the country.

KFA LOSS AT RS 754CR, AUDITORS SAYS IT COULD BE MORE

KFA has posted a net loss of Rs 754 crore for the quarter ended September 30, 2012 compared to Rs 469 crore for the same period last year and Rs 650 crore in the first quarter ended June 20, 2012.However the auditors to KFA says that the loss could be more than Rs 1000cr if they company had followed standard accounting practices.

DIAGEO STRIKE DEAL WITH UNITED SPIRITS

The world's largest spirit maker Diageo  has struck a deal with  Mallya controlled United Spirits to pick up 51% stake. The deal is valued around Rs 6000cr.

FIIs,DIIs NET BUY IN CASH MARKET

As expected market opened weak. NIFTY had lost 50 odd points in the morning. Indices recovered by close due to net buying by both FIIs and DIIs. They have net bought to the extent of Rs 346cr in cash market. Today's fall is led by infra, bank, auto and I T stocks. Asian Paints hit hew 52 week high of Rs 4199 and closed at Rs 4175, up Rs 54. L&T lost Rs 33 to close at Rs 1636. However L&T Finance Holdings was up more than 5% second consecutive day and closed at Rs 62.30. First Choice IPO had recommended the stock recently at Rs 44. Indices are expected stage a smart come back tomorrow.

MARKET TO OPEN IN RED, CLOSE IN GREEN

Global cues may force our market to open in red. However our benchmark indices Sensex and NIFTY will recover by close with substantial gains. Sensex may touch 19000 and NIFTY 5800 level today or tomorrow.

ASIAN MARKETS CHEERS OBAMA VICTORY, U S AND EUROPE MARKETS PLUNGES

Obama’s victory has brought cheers in Asian markets. However major indices in U S and Europe have lost around 2%. The weaker sentiments prevailed in these markets because of renewed worries about economic troubles in Europe, a key market for many US companies. The euro zone economy will barely grow next year but pick up in 2014. The region's economy would grow only 0.1% in 2013.

COGNIZANT REVENUES, NET UP

Cognizant Technology has posted 22 per cent jump in consolidated net profit at $ 276.9 million for the September quarter. The growth has come from newer service offerings in consulting, BPO and IT infrastructure services. The company’s net profit stood at $227.1 million in the same period last year.

Cognizant’s revenues grew 18.2 per cent in the quarter under review to $1.892 billion.

NSE NEWS : REVISION IN MUHURAT TRADING SESSION TIMINGS

NSE, in partial modification  to circular no.028/2012 dated October 31, 2012,  hereby notifies the revised timings of Muhurat trading session on account of Diwali, on
 
Tuesday, November 13, 2012 as follows:
 
Tuesday, November 13, 2012  Time
 
Normal Market open   15:30 hrs.
 
Normal Market close  17:00 hrs.
 
Set up cut off time for Position Limit / Collateral value  17:15 hrs.
 
Trade modification end time   17:15 hrs.

U S ELECTION 2012: OBAMA WINS

Obama has been re elected as the U S president for the second term.

U S PRESIDENTIAL ELECTIONS : ROMNEY TAKES EARLY LEAD

Romney is ahead in the electoral college vote count. He's got 163 votes as against 157 got by Obama. Out of the 51 states (including District of Columbia),  results for 34 states have been declared.

TBZ RESULTS TODAY

TBZ shares are on upswing in the last couple of weeks after the company announced its major expansion plans. The came public in the month of May this year at a price of Rs 120 a share. Shares were listed at discount and in the initial months it was hovering around Rs 100. From Aug  onwards the stock is on the upward move and has given more than 90% return on its IPO price. The stock closed at Rs 227 in the exchanges yesterday. We expect the company to report 25% growth in revenue and as well as in net profits for the quarter ended Sept 2012.

BMW SHIFTS GEAR

World's largest luxury car maker BMW has reported good numbers for July-Sept, largely due to booming sales in Asia. Sales in China rose by 33% and in Japan by 22%. This helped to post a 17.6% rise in pre-tax profit to $2.5bn for the period between July and September.

INDICES CLOSE ON POSITIVE NOTE, RIL & INFY TO SIZZLE TOMORROW

NIFTY gained 20 points led by pharma,infra and cement stocks. Cipla, Ranbaxy among pharma, ACC, Ambuja from cements and DLF and JP Associate among infra stocks gained maximum. IDFC, Maruti, Hindalco and Relinfra were the main losing stocks. FIIs net bought in cash market to the extent of Rs 175cr.  NIFTY 5800 call options  added maximum open interest indicating imminent bull run, for at least 100 NIFTY points. RIL and Infosys are likely to sizzle tomorrow.

BOSCH Q2 RESULTS DISAPPOINTS

BOSCH  has posted a net profit of Rs. 203cr for the quarter ended September 30, 2012 as compared to Rs. 288cr in the same quarter of  2011. Total Income has increased from Rs. 2076cr for the quarter ended September 30, 2011 to Rs. 2155cr for the quarter ended September 30, 2012. The stock is unmoved and trading around yesterday's level.
 

ODHISHA GOVT ALLEGES OF ILLEGAL MINING BY TATAS

Odisha government  has alleged that Tata Steel has illegally mined in the state.
Deputy Director of Mines of Joda mining circle has slapped the fine on the steelmaker and on several other iron ore producers on charges of "illegal and excess mining","Tata Steel has been fined about Rs 6,000 crore," according to sources.

RESULTS TODAY : CANARA, CENTRAL, DENA BANK AND BOSCH

Three public sector banks of different size will announce their Q2 results today. So far the trend for PSU banks have not been encouraging. They have been bogged by slow growth rate, raising NPAs and falling margins. We expect the similar trend in the results to be announced by Canara, Dena and Central bank. Auto ancillary major Bosch too will announce its results for Sept quarter. Since the auto sales were sluggish in the last quarter, Bosch results may not be that exciting.

NIFTY TO TOUCH 5800 LEVEL THIS WEEK

Benchmark indices Sensex and NIFTY closed flat yesterday. Metal, auto, oil&gas and I T stocks are appears to be in consolidating mode. FIIs have stepped up the buying, however DIIs have aggressively net sold yesterday which forced indices to stay put where they are. China's manufacturing growth rate has improved in October compared to previous months. This news may keep metal stocks busy. Falling oil and gold prices are good news for our economy and consumer goods sector. Hence auto and FMCG stocks may sizzle before Diwali. Austerity measures announced by euro zone countries is good news for policy makers across the world in general and in particular for U S and U K. Recent reforms initiatives announced by the government has sent a strong signal to international rating agencies who are harping on further down grade. Most importantly corporate results  announced by most of the companies for Q2 of FY13 are good. Only PSU banks results are not encouraging due to slow down in economy and how they are being managed. Overall there is feel good sentiment. This may take the NIFTY to 5800 level this week, barring unforeseen incidents that has bearing on the markets.

OMDC Q2 RESULTS ON 14-NOV-12

One of the highest quoted share on the exchanges - OMDC will announce its result for Q2 on 14-11-12. The company has a very small equity base(Rs0.60lacs). The one rupee face value  shares are trading around Rs 4200 as of now. In the first quarter the company reported a net profit of Rs 2.81cr. In this quarter it may report profit around Rs 4.00cr.

MARKET TO OPEN IN RED, CLOSE IN GREEN

Benchmark indices Sensex and NIFTY will open in red. Asian markets in the early trade have lost modestly. Last Friday Europe closed on strong note. However Dow Jones, NYSE and NASDAQ all closed in red. Our market here is expected to open in red as indicated by other Asian markets. FIIs have net bought to the extent of Rs 382cr in cash markets on Friday. FIIs are shuffling the portfolios and increasing their investments auto, new gen private sector bank, pharma, FMCG and mid cap I T stocks. Retail investors sentiments too have been improved in the last two months. We expect the indices to close in green.

TECHMAHINDRA Q2 RESULTS TODAY

Software services major TechMahindra will announce its Q2 results today. The stock closed at Rs 954, up Rs 11 on last Friday. In the first quarter the company had posted a net profit of Rs 167cr. The net profit for Q2 may be around Rs 190cr, as per our estimate.

DIVI'S LAB Q2 NET PROFIT UP

Divis lab has posted a net profit of Rs.118cr for the quarter ended September 30, 2012 as compared to Rs. 106cr for the quarter ended September 30, 2011. However the net profit has down drastically as compared to the profit in the first quarter of FY13. Rs Total Income has increased from Rs. 377cr for the quarter ended September 30, 2011 to Rs. 482cr for the quarter ended September 30, 2012. The stock closed at Rs 1193, down Rs 7 on last Friday.

Special Live trading session on November 11, 2012

The Exchanges will be conducting a special live trading session on Sunday, November 11, 2012 on the auspicious  occasion  of  Dhanteras  for  trading  in  Gold  Exchange  Traded  Fund  (Gold  ETF) securities in the Capital Market segment.

SAHARA FACES FORCED CLOSURE

SEBI has filed a contempt petition against the Sahara Group in the Supreme Court for not complying with the apex court’s directions relating to refund of around Rs 24,000 crore raised by two of the Group’s firms from investors through optionally fully convertible debentures. SC may direct SEBI to use police force to seize the properties of Sahara.

Sahara India Real Estate Corporation and Sahara Housing Investment Corporation  have not followed the court’s direction to furnish within 10 days the information about the investors. The petition has been filed two weeks after the apex court asked Sebi to take action as per the law for not following its directions to refund around Rs 24,000 crore to investors within three months.

AUTO, BANK AND INFRA STOCKS SHINE

NIFTY is up 40 odd points in the morning trade led by auto, infra and bank stocks. Among infra L&T, JP Associate, Relinfra and BHEL are the top gainers. In bank Axis and ICICI are active. And among auto M&M, Hero and Bajaj are in top gear.

YERRAN NAIDU DIES IN AN ACCIDENT

Senior TDP leader Yarran Naidu has died in road accident near Srikakulam in Andhra Pradesh.

MARKET TO OPEN AND STAY IN POSITVE TERRITORY

Markets across globe closed in green. There were two big positive news. First America's consumer confidence has jumped to five year high and secondly China's manufacturing growth expanded in the last three months and the country is on the path of recovery. In the last three years China's manufacturing activities were subdued. Dow Jones, yesterday was up by 136 and NASDAQ by 43 points. Automobile manufacturers are likely to report very robust numbers for the month of October. Bank stocks are slowly recovering from rate cut blues and will lead the indices surge.

SWAMI ACCUSES SONIA, RAHUL THREATEN WITH DEFAMATION CASE

Janata Party president Subramanian Swamy has accused UPA president Sonia Gandhi and her son Rahul Gandhi of converting a public trust into a private property. He also alleged that the two acquired a Rs. 1600 crore estate called 'Herald House'owned by associated journals ltd, for just Rs. 50 lakh. Rahul Gandhi has threatened with defamation case against Swamy for making baseless allegations.

BOSTON BASED DOCTOR GETS RAJYOTSAVA AWARD

Dr Sagar Dugani practicing doctor in Boston has been awarded Rajyotsava award by Karnataka government for the year 2012. He has been chosen under Social Service category.

ICRA, WIPRO Q2 RESULTS TOMORROW

Rating agency ICRA will announce its Q2 results tomorrow. The company had posted a net profit Rs 8cr in the first quarter. In this quarter its results may be a shade better. The stock closed at Rs 1360, up Rs 4.

Wipro had recorded a net profit of Rs 1158cr in the first quarter. This time the profit may be around Rs 1300cr. Wipro will also be demerging its non core business to a separate entity.

WIPRO WILL BE CORE I T COMPANY

It is never too late. Wipro should have done this a decade ago. The I T to consumer care to infra to medical diagnostic company has decided to de-merge its non core I T business into a separate company.  In the exchanges, in the last one decade Wipro's performance has been lackluster. Now the company has decided to de-merge its three non-IT business divisions, including consumer products segment, into a privately-held company to be named Wipro Enterprises Ltd.

The new unlisted firm will include Wipro Consumer Care & Lighting (including furniture business), Wipro Infrastructure Engineering (hydraulics and water businesses) and Medical Diagnostic Product & Services business. The stock today was 3% and closed at Rs 361 at BSE.

TATA MOTORS SPARKLES, NIFTY UP 25 POINTS

Negative sentiments prevailed in the exchanges for few hours in the morning. Led by RIL, NIFTY had lost slipped below 5600 level. Trend was reversed after auto stocks surged. Tata Motors was the top gainer. It closed at Rs 266, up Rs11.  Maruti numbers for October has beaten the street estimate. The stock gained Rs 27 and hit 52 week new high. Similarly Bajaj, Hero and M&M, all closed with substantial gains. Bajaj auto and M&M too hit 52 week high. Bank stocks recovered from rate cut dilemma and ended the day in green territory. The biggest reversal of the trend came from RIL. The stock due to negative news had lost Rs 17 in the early trade but recovered to close in green. ONGC, HUL,ITC,GAIL and HDFC Bank were the main losers among NIFTY stock. FIIs net bought to the extent of Rs 335cr in cash market. Market is expected to be positive territory tomorrow also.

CANARA BANK Q2 RESULTS ON 06-11-12

Bangalore based public sector Canara Bank will announce its Q2 results on 06-11-12. The bank had posted a net profit of Rs 775cr. Bank's NPM had taken a beating in the last two quarters. We expect a dismal performance by the bank in this quarter too. The stock closed at Rs 409, up Rs 7 in the exchanges today.

IAC ALLEGATIONS MAKES NO IMPACT ON RIL STOCK

The allegations made by IAC against Reliance Industries had no impact on its shares in the exchanges. The stock which was down Rs 17 in the morning recovered to close at Rs 807, up by Rs 1.50. Compared to previous day the volume too picked up.

RCOM, ADANI IN NIFTY MIDCAP 50 INDEX

Rcom was once favourate of the investors and part of Sensex, NIFTY. Failed business model lost the confidence of the investors. Market cap of the company also nose dived. It was removed from the NIFTY and Sensex last year. Now NSE will include Reliance Communications to its Nifty Midcap 50 index. Also making to the list is another yesterday's darling Adani Enterprises . These two companies will replace Mphasis and Piramal Enterprises. The changes will come into effect from November 30, 2012.

IPO NEWS : VIDEOCON D2H PLANS TO RAISE RS 750CR

The satellite TV broadcast services  provider Videocon D2H has plans to raise funds from IPO to the extent of Rs 750cr. Swiss bank UBS,Enam Securities and ICICI Securities are likely to be the BRLMs to the proposed IPO.

IAC TURNS HEAT ON RELIANCE INDUSTRIES

After making allegation against Robert Vadra, DLF, Gadkari, IRB Infra, Hooda Government, India Against Corruption has turned heat on the country's largest enterprise by market cap - RIL. IAC alleges that rules are changed to favour RIL, during the BJP led NDA government at center and subsequently by UPA. RIL has denied the allegations. We at First Choice IPO feel although the intentions of the IAC are good, its members are immature, impracticable, publicity crazy and  they think that except themselves all others are dishonest.

ARECELOR MITTAL REPORTS LOSS IN EXCESS OF$700 MILLION IN Q3

World's largest steel maker ArecelorMittal has reported net loss of $ 709 million for the third quarter as against profit of $659 million during the same period last year.

The company had recorded profit of $ 959 million in the second quarter of 2012.

The sales during the July-September quarter stood at $19.72 billion as against $24.21 billion during the same period in 2011.