News to watch

Monsoon progress halted again over west coast, An itinerant western disturbance with associated dry north-westerlies was seen interfering with the progress of the monsoon along the west coast on Thursday.  http://www.thehindubusinessline.com/2010/06/18/stories/2010061852661900.htm

http://www.thehindubusinessline.com/2010/06/18/stories/2010061853491100.htm  Cement sector hit by excess capacity    The sharp fall in demand on the back of excess capacity and onset of south-west monsoon may hamper the profitability of cement manufactures for the next few quarters.

Reliance Industries Ltd. should cede its rights to a petroleum exploration block off India’s eastern coast, the Mint newspaper reported, citing a recommendation to the government by the Directorate of Hydrocarbons. The advise was given after the company missed a deadline to declare the block commercial viable, the newspaper reported, without saying where it got the information.

The Securities and Exchange Board of India (SEBI) has banned an equities dealer of HDFC Asset Management from stock market transactions for allegedly leaking information of its trades to three market participants in advance. The trio, too, have been barred from stock market transactions until further notice. In its order late Thursday, the market regulator revealed instances where investors Rajiv Ramniklal Sanghvi, Chandrakant P Mehta and Dipti Paras Mehta placed orders in the same set of stocks, just before those were traded by dealer Nilesh Kapadia on HDFC AMC’s behalf.

Option data highest ever

Option data shows that FIIs Outstanding position in Nifty option alone is Rs.50, 924crs while total Option Outstanding position is Rs.89,549 crs and futures position is Rs.56, 418crs which clearly indicate that majority have built position in option as market has been range bound for than 8months now, sooner than latter major move can upset the market calculation as many traders and investor have built strategy in this. PCR above 1.50 indicates excess positions in Puts and if crucial support levels get broken panic selling can be high. Distribution below shows 5300 would be crucial resistance, failure to move past that can bring selling once again into markets and 5000 can act as strong support as per derivative data below which panic up to 4800 and lower also can be seen.

Impact of 25% public holding & newslink

This is very positive move which would improve liquidity in stocks and avoid price rigging. But the time it has come would give a chance for long term investor to buy big company stocks @ cheaper value in my view. As this move can bring close to 2lac crore of issue (as per reports) when Global liquidity and local liquidity is waning. While major proportion of the impact will come from PSU sector and anyway this will help government to reduce fiscal deficit, if needed one more stimulus package can also be announced if globally if Double recession take place.

http://www.thehindubusinessline.com/2010/06/05/stories/2010060552730100.htm  


The Bombay Stock Exchange (BSE) moved over 600 stocks — nearly one-fifth of the total stocks listed on the bourse — to the trade-to-trade, or ‘T’ group, last month, to curb speculative activity. http://economictimes.indiatimes.com/markets/analysis/BSE-T-group-stocks-soar-as-punters-ramp-up-prices/articleshow/6005503.cms  

Some of these stocks have gained anywhere between 350% and 1350% since the beginning of this calendar. For instance, Shree Nath Commercial has gained 1346%, Veritas has rose 700%, Capital Trust has jumped 570% and Tirupati Sarjan 450%, while others like Insutech, ACE India, Jaihind Synthetics, among others, have gained between 400% to 300%.