Temperament... The bear attack continued. But the fact remains is that market was extremely oversold yesterday on the back of huge short selling. The buzz on the street was downward circuit and hence selling short. The reason for lower circuit is probably inflation which is expected to climb further this week end for sure on the back of rising prices. But the real concern of traders is inflation would touch 9% or may be 10% if petrol prices are allowed to hike. Both the events are inevitable. Inflation will climb to as high as 10% on petrol hike of Rs 3 per liter. It is very much true but what is important is that the same is already priced. Though Nifty touched 4660 today for me it is already all time low because Sensex rose by IT stocks for a while. If you take IT stocks valuations of FEB or March and then revisit Nifty nos you will get the answer. It is also true that the buying depth is not immerging from FII but it can’t be ignored that the selling depth is being absorbed by the market maker. I am not to the fact that market will rise one way to 6000 because it is still few more events has pass for happening the same. But at the same time market will oscillate now onwards. I am seeing value buying to start very soon from every nook and corner. So far we have resisted from generating buy calls in A gr because we knew that B gr was on fire. Now it is A gr will remain on fire and lead the show form the front. All A gr shares which are available at throw away prices such as IDBI at Rs 80, Punj at 275 will find takes come what it may. I am sure market will find its bottom very soon and start regaining its lost glory. Nifty will first test 4830 again because most of the punters have been trapped short in Nifty, RIL, J P, IFCI, etc. I think we will solve the complaints of few traders who were really not happy with B gr calls but friends it was market. We are not very much comfortable with A gr where sheer value is now available. Only one gurumantra must be kept in mind is that keep on trading fast. Keep on reducing your cost faster and if possible try to transfer the trading profits into portfolio delivery so that your exposure remains constant. Excess leveraging is always dangerous. We generated 5 trading calls today Jeyswal Neco, J P Associates, Bombay Dyeing, Reliance and Nifty. All met with huge success with profit ranging from 2% to 5%. There is no personal charm so great as the charm of a cheerful temperament.

Govt hikes prices of petrol by Rs 5/L and diesel Rs 3/L Wednesday, June 04, 2008 Amid growing consumer concern, the Cabinet on Wednesday raised prices of petrol by Rs 5 and diesel by Rs 3 to bail out state-run oil firms that have been reeling under unprecedented high crude prices. Prices of domestic cooking gas was hiked by Rs 50 a cylinder effective midnight tonight. The excise duty on petrol was cut by Rs 1 a litre and diesel and customs duty on crude was abolished. Poor man's fuel kerosene was exempted from the hike. Petroleum Minister Murli Deora told reporters. With the hikes, India joins other Asian nations like Indonesia and Malaysia that are raising regulated domestic fuel prices as they find they can no longer afford to shield their consumers from the full effect of record global prices. The Cabinet Committee on Political Affairs today met to deliberate on the need of raising fuel prices in view of spurt in global oil prices. Prime Minster Manmohan Singh was expected to address the nation later in the evening to tell the people why the government increased prices of fuel at this point when inflation is also high. The meeting was chaired by Prime Minister Manmohan Singh and attended by External Affairs Minister Pranab Mukherjee, Defence Minister A K Antony, Finance Minister P Chidambaram, Petroleum Minister Murli Deora, Railway Minister Lalu Prasad and Road Transport Minister T R Baalu. Petrol and diesel prices were last raised in February when the Indian basket of crude oil was at 67 dollars per barrel. Today it is at 124 dollars per barrel. State-run Indian Oil, Bharat Petroleum and Hindustan Petroleum were together projected to lose Rs 2,46,600 crore on sale of petrol, diesel, domestic LPG and PDS kerosene in 2008-09 in absence of any price hike or duty cut.

Tata Motors completes JLR buy Tata Motors on Monday acquired the Jaguar Land Rover (JLR) businesses from Ford Motor for a net consideration of $2.3 billion. The luxury brands are part of a line-up that includes the low-cost Nano, which will be rolled out this year. Ford has contributed about $600 million to the JLR pension plans. The all-cash deal, which was signed in March 2008, has come to symbolise India Inc’s coming of age and its global ambitions. Despite tight credit markets, Tata Motors has been able to achieve financial closure for the $2.3-billion deal. The transaction includes the necessary intellectual property rights, manufacturing plants, two advanced design centres in the UK and a worldwide network of sales companies, Tata Motors said in a statement. The fund-raising involved a consortium of 15 banks, including banking majors from Asia, the UK and Singapore, sources said. Tata Motors confirmed that David Smith, the acting JLR CEO, would be the new CEO of the business. Mr Smith has 25 years’ experience with JLR and Ford. Before recently returning to JLR as CFO, he was director of finance and business strategy at Premier Automotive and Ford of Europe. The bridge loan, amounting to $3 billion, is being underwritten by eight banks — State Bank of India, Citibank, JP Morgan, Standard Chartered, BNP Paribas, Tokyo Mitsubishi, Mizuho Financial Group and ING. The bridge loan covers the $2.3-billon acquisition and other funding requirements. The rest will fund working capital requirements of JLR and could even fund some of Tata Motors’ own expansion plans, though there is no confirmation of the latter. Ratan N Tata, chairman of Tata Sons and Tata Motors, along with Don Leclair, the executive vice-president & CFO and Lewis Booth, EVP of Ford Motor company were present at the handing over ceremony at the UK-based Gaydon head quarters of JLR. “We will extend our full support to the JLR team to realise their competitive potential. JLR will retain their distinctive identities and continue to pursue their respective business plans as before,” Mr Tata said in a statement. “While we recognise the significant improvement in the performance of the two brands, we are looking forward to this trend continuing in the coming years,” added Tata. “We look forward to a sustained bright future for the company and its stakeholders,” Mr Smith said. Tata Motors is quite certain it can bring the brands back to profitability after it recently saw the new model lines and planned product cycles. Last week, Tata Motors said it would raise up to Rs 7,200 crore from three rights issues to help fund the acquisition. This would replace the bridge loans. On completion of these issues, it would also raise a further $500-$600 million from overseas equity issues. Long-term agreements have been entered into for supply of engines, stampings and other components to Jaguar Land Rover. Other areas of transition support from Ford include IT, accounting and access to test facilities. The two companies will continue to co-operate in areas such as design and development through sharing of platforms and joint development of hybrid technologies and power train engineering. The Ford Motor Credit Company will continue to provide financing for Jaguar Land Rover dealers and customers for a transition period. Tata Motors is in advanced stage of negotiations with leading auto finance providers to support the Jaguar Land Rover business in the UK, Europe and the US, and is expected to select financial services partners shortly.

Cabinet Committee to decide on fuel hike on Wednesday The Cabinet will meet on Wednesday to decide on raising fuel prices that have been necessitated by the relentless rise in international crude oil prices. "We are still discussing the issue and a Cabinet meeting is scheduled for tomorrow," External Affairs Minister Pranab Mukherjee told reporters on the sidelines of an industry event here today. He, however, refused to comment any further on the Cabinet agenda. With consensus on raising petrol, diesel and domestic LPG prices still eluding, the Cabinet Committee on Political Affairs (CCPA) will meet early tomorrow morning. If a consensus is hammered at the CCPA meeting, the Cabinet Committee on Economic Affairs (CCEA) may be convened, Government sources said. Prime Minister Manmohan Singh yesterday indicated of an imminent fuel price hike when he said consumers cannot be fully insulated from the impact of rising global oil prices. With the surge in global oil prices leaving a Rs 2,25,040 crore revenue deficit with oil companies, Singh has over the past one week held several rounds of consultations with senior ministers and UPA Chairperson Sonia Gandhi but a consensus has eluded the government. Petroleum Minister Murli Deora, who has been pushing for a Rs 10 a litre hike in petrol, Rs 5 per litre increase in diesel and Rs 50 per cylinder raise in LPG prices, has readied a note for consideration of the Cabinet. However, the hike may be moderated to Rs 3, 5 or 7 a litre on petrol and Rs 2, 3 or 4 a litre on diesel. LPG prices may be raised by Rs 20 per 14.2-kg cylinder, sources said.

Videocon ups investment to Rs 12,000 cr in telecom Videocon promoted Datacom will invite bids next week for rolling out 70 million GSM mobile lines across the country, envisaging an investment of over Rs 12,000 crore in the next four years. "We shall be releasing Request for Proposal (RFP) from telecom vendors for 70 million GSM lines. Our plan is to start rolling out network by August this year," Ravi Sharma, Managing Director of Datacom, a company led by Group Chairman Venugopal Dhoot, told media. Videocon, which has a majority stake in Datacom, had earlier announced Rs 6,000 crore investment in the telecom business and it has now been doubled to Rs 12,000 crore. Besides huge investment in the domestic telecom sector, Datacom is also looking for a footprint in the global market through a mix of stake acquisition in existing telecom companies or through greenfield projects. The company is talking to a host of players globally through its international arm Thompson, Sharma said, adding that talks are in the initial stage and fructification of the deal may take some time. Datacom was awarded licenses in 22 circles recently and the government has already started allocating spectrum (radio frequency) in some of the circles. The company has been given start-up 4.4 MHz spectrum in states of Kerala, Tamil Nadu, Andhra Pradesh and Karnataka and may also get frequency in Orissa and Kolkata soon.

R Comm, MTN may begin due diligence in 2 days Reliance Communications and MTN are likely to begin due diligence over the next two days. The two companies may be looking at a share swap that would give MTN a majority stake in Reliance Communications and make the latter's Chairman, Anil Ambani, the largest shareholder in the South African company.

RIL's Hazira unit bags award Reliance Industries' Hazira manufacturing division has won the "Golden Peacock Award for Combating Climate Change — 2008". The award was presented to Reliance at an awards event at the Global Convention on Climate Change by Himachal Pradesh Chief Minister Premkumar Dhumal and former Prime Minister of Sweden, Ola Ulsten. The Golden Peacock Awards jury is chaired by former Chief Justice of India and Member, UN Human Rights Commission, Justice P N Bhagwati, a press release issued here today stated.