Indian firms get invite to list on HK bourse

Hong Kong on Wednesday initiated a process to attract Indian companies to list on its stock exchange, saying ample liquidity in that market will help local companies raise resources.

A delegation led by Hong Kong financial secretary John C Tsang discussed with a dozen Indian companies, most of them big corporate houses, the possibility of listings on the Hong Kong Stock Exchange (HKSE).

Tsang and his officers also visited the Bombay Stock Exchange (BSE) to “understand and discuss” the matter with its CEO Rajinkant Patel and other senior executives.

The delegation is also looking to encourage the derivatives trading on Indian benchmark stock indices – Sensex and Nifty – on HKSE.

Speaking to the media, Tsang said at present, nearly 40 per cent of the stocks listed on HKSE were from the mainland China and that the number of foreign companies was very small.

An Exchange Traded Fund (ETF) on BSE’s Sensex is listed on HKSE but no Indian company has explored a Hong Kong listing as yet. There are over 40,000 Indians in Hong Kong. There are also 1,500 Indians’ promoted companies in the region.

“Hong Kong can be a good platform for Indian companies to tap the mainland,” he said. A dual-listing (India-listed companies going for listing on an overseas bourse) was also welcome, Tsang said.

Securities in ban period for trade date December 13, 2007- F&O segment

Securities in ban period for trade date December 13, 2007- F&O segment

The derivative contracts in the underlying ESSAROIL, MRPL, GITANJALI, BINDALAGRO, NAGARFERT, PARSVNATH, IFCI, HOTELEELA, BONGAIREFN, ADLABSFILM, GMRINFRA, JPHYDRO & ARVINDMILL have crossed 95% of the market-wide position limit and are currently in the ban period.

It is hereby informed that all clients/ members shall trade in derivative contracts of ESSAROIL, MRPL, GITANJALI, BINDALAGRO, NAGARFERT, PARSVNATH, IFCI, HOTELEELA, BONGAIREFN, ADLABSFILM, GMRINFRA, JPHYDRO & ARVINDMILL only to decrease their positions through offsetting positions. Any increase in open positions shall attract appropriate penal and disciplinary action in accordance with the Circular No. NSCC/F&O/C&S/365 dated August 26, 2004.

HOT STOCKS for 13-12-07

STATISTICS :

Nifty is now trading in highs. so nifty will be rangebound and volatile and stock specific action can be seen. Nifty has a support level @ 6095 and a resistance @ 6198, once nifty trades above these levels with high volumes can see new highs and nifty touching to 6240 levels. Below 6095 levels nifty will be very volatile can tend to 6020 levels.

DELIVERY :

Can hold these stocks for medium term

EDUCOMP : buy for a tgt of 4800+ :: tgt can be achieved by february

Nagarjuna Fertilizer : buy for a tgt of 140+ levels :: tgt is for 6 months time frame

MCLEODRUSSEL : buy for a tgt of 125+ levels now@ 78 :: 3 months time frame.

INTRADAY :

Tips for intraday will be updated during market hours

FUTURES :

SATYAM : buy below 428 levels for a tgt of 440+

WIPRO : sell above 508 for a tgt of 500 , sl @ 515

RPL : buy for a tgt of 235+, sl @ 226

HINDALCO : buy for a tgt of 213+, sl @ 204.5

BEL : buy for a tgt of 1880+, sl @ 1818

OPTIONS :

HINDALCO : buy call 205 for a tgt of 13+ , sl @ 6

Heard on the street

Taking the law at the face value

It’s the classic case of a law being honoured in letter, but not in spirit. Manaksia, a metal products company, is coming out with a public issue, constituting 22.29% of the post-issue capital of the company with a price band of Rs 140-160 per share. No issues with that, but dig a little deeper and one finds the face value of the share is Rs 2. Indian Securities Law states that any IPO where the face value of a share is less than Rs 10, then shares should be priced at above Rs 500. Now the merchant banker to the issue, ICICI Securities says since the company is already listed on the Calcutta Stock Exchange, this is not exactly an “initial public offer,” and hence the rules of face value do not apply. But the issue has been marketed just like an IPO and the investors who are buying shares (that will be listed on BSE and NSE) are treating the issue like one. Manaksia plans to raise Rs 250 crore at the upper-end of the price band. Issue is on from December 17 to 19.


Investors in Apollo Tyres see road to growth

Shares of Apollo Tyres have risen 25% in a week amid speculation the company may raise tyre prices soon. However, an analyst tracking the company said the price hike is unlikely to be significant, as the industry has already raised prices by 15-20% so far this year. The analyst believes the recent run-up in its share price to Rs 52.3 factors in expectations of a much higher price hike, than what is likely. Apollo Tyres enjoys the market leader’s position in the truck and bus tyre segment. Analysts estimate the company’s earnings per share in 2007-08 at Rs 3.1, as against Rs 2.5 in 2006-07. In 2008-09, it is estimated at Rs 4.1.


Sugar stocks spring a sweet surprise

Until some weeks ago, sugar stocks were not so sweet an investment. The counters were under pressure on fears that the sector is likely to witness a situation of plenty for the next two seasons. However, the perception has seen a turnaround over the past one week on expectations that the central government is to announce subsidies/exemptions to the ailing sector. According to market sources, domestic funds houses and a handful of operators have been shoring up on sugar stocks in large numbers. This is evident in the surge in stock prices of key sugar companies like Bannari Amman Sugar (up 6% over the past one week to close at Rs 890), Dwarikesh Sugar (up 28% over the past one week to close at Rs 75), Simbhaoli Sugar (up 21% over the past one week to close at Rs 49) and Shree Renuka Sugars (up 21% over the past one week to close at Rs 841).

(Contributed by Gaurav Pai, Nishanth Vasudevan & Shailesh Menon)

SBI cuts deposit rates again

Peak rates slashed by 25 basis points to 8.5 per cent.

State Bank of India (SBI) has cut the peak term deposit rate by 25 basis points (bps) to 8.5 per cent for the second time in just over a month.

It has also slashed rates on short-term deposits of less than a year by an identical margin to improve asset-liability management and reduce the cost of funds. The new rates are effective from December 12.

SBI would now offer 8.5 per cent on 550-day deposits against 8.75 per cent earlier. The peak deposit rate is down from 9.50 per cent about nine months ago.

The interest rate for 15-45 days’ deposits is 4.75 per cent against 5 per cent earlier, for 46-270 days 5.25 per cent against 5.5 per cent earlier and for 271 days to less than a year 6.5 per cent, down from 6.75 per cent.

However, the country’s largest bank commercial bank raised the rate for deposits in the 1 year to 549 days category to 8.25 per cent from 8 per cent.

It has kept the rate for 2 years to less than 3 years at 8.25 per cent. The rate for long-term deposits (3-10 years) has been maintained at 8.5 per cent.

A senior SBI official said, “The bank wants to calibrate (increase) the average tenure of deposits and this is reflected in the rate revision. The asset side duration, say for home and auto loans, is long, but the liabilities ( resources) show a relatively short maturity.”

The cost of deposits has increased to 5.48 per cent from 4.51 per cent due to higher term deposits mobilisation and higher interest rates. The share of low-cost depoists (current account and savings accounts) fell to 39.45 per cent by the end of September 2007 due to focus on raising resources through term deposits by offering attractive rates.

The bank’s deposits grew by 23.31 per cent to Rs 4,84,114 crore at the end of September 2007 from Rs 3,92,615 crore a year ago.

The present conditions in the financial market signal that rates have peaked out. Thus reducing the rate for deposits should help cut the cost of funds. The effects will only be seen after 3-6 months.

The benefit is to improve and protect the net interest margin, which stood at 2.84 per cent after deducting amortisation premium by end-September 2007.

“Eventually, we would like to revise (reduce) lending rates also,” he added.