China GDP Expands 11.2%

Thursday, January 24, 2008

China's economy expanded more than 11 percent for the fourth straight quarter, supporting global growth as a recession looms in the U.S.

Ispat, JSW line up plans for carbon business

Thursday, January 24, 2008

Steelmakers like Ispat Industries and JSW Steel are planning to cash in on carbon credit incentives, by recycling waste gases into energy fuels.

Ispat Energy, the wholly owned subsidiary of Ispat Industries, is targeting a generation of 6-8 lakh carbon credits from its 110 mega watt captive power plant at Dolvi, which will be fired by waste gases from its blast furnace. JSW, on the other hand, will derive 7.6 million carbon credits over the next ten years. Both the companies have major plans which include setting up more power plants running on such fuels.

Ispat's Dolvi power project is expected to be operational by the end of this calendar year. The company is hopeful that this project will be registered with the United Nations Framework Convention on Climate Change (UNFCCC) as a clean development mechanism (CDM) project, and thus generate carbon credits.

"Carbon credits will be generated after the plant is operational. We hope to sell them in the market to earn an income," said Ispat Industries executive director (finance), Anil Sureka said. Ispat Energy has already tied up finances for the Dolvi captive power plant and project activities have commenced.

Seshagiri Rao, director finance at JSW Steel, said, "We have already registered one of our units with the UNFCCC. As and when we firm up our plans for the other project, we will apply for those as well." JSW has already sold 7.6 lakh carbon credits to record an additional income of around Rs 111 crore in the second quarter of the current financial year.

Iron and steel comprise around 15% to the overall GHGs emitted globally. India, which produces over 38 million tonne of steel, forms merely 3% of the total world production. However, given the high economic growth rate of the country, it is an important part of the global steel industry. With the rise in global concern about climate change, the International Iron and Steel Institute, for the world steel industry, has drawn a routemap for carbon emission reductions as part of post-Kyoto regime.

The objective is to continue research and development efforts towards breakthrough technologies, draft legislations or regulations to legally implement and enforce commitments in individual member countries, and engage individual member countries in negotiations.

Going forward, the plan will also identify with projected carbon reduction expected by entire global steel industry by 2020 or beyond.

Promoters' Day Out.....

Market is giving volatile run which it would continue for next 3 weeks and hence we request all members not to dare out for trading. This is contrary to my calls in similar situations earlier. The reason that the vitamin M is absent from the market which will resurface after 2 to 3 weeks.

I am sure the money which is blocked for 3 weeks is sufficient to counter the bear attack. Bears which must have planned this attack in their drawing room is nothing less than a conspiracy at war room on INDIA CHINA border and a foreign hand can’t be ruled out in this entire massacre.

This was not blood bath but this was a powerful missile on the state like HIROSHIMA and NAGASAKI the only difference is that this happened in the financial world. Govt is doing their best. As the citizens of financial world if every citizen stands up this occasion and buy share of 2 to 5 lacs of his choice market will find stabilizing leave apart the MF money to flow back in next 3 weeks.

At 21 K I had suggested remove money from MF but now I am strong advocate of re investing in M F because the returns from these levels will be very smarter. All ideal money should travel to MF instead of run on the MF. Another important message for all the promoters are that they should step out in the middle and start using their VETO power to buy their own shares which have corrected by 50%. This is a MUST exercise because those who are supporting market today on Govt instructions may also come for profit booking whereas promoter’s shares will never come and liquidity will be sucked to that extent from the market. e g If Pashwanath was thinking to place their shares at 650 to QIP it makes sense for them to allow their stock stabilise at 400 very fast which can happen if they come out and buy at least 4 to 5%. Even 1% buying in this market will work as much required tonic and give effect of buying 5%.

No overnight change has taken place in INDIA fundamentals. However technically we are at 9000 Sensex which pitch it for a smart on road rally. The question remains who will bail the cat first…..? Almost all funds head’s have lost very heavily due to F R which has dented the system to some extent. To best of my knowledge market will test 5800 as soon as the RELP refunds are granted.

To that extent I think. ADAG gr has to shoulder the responsibility with Govt intervention if required and see that allotments are processed as early as possible and refunds are granted online which can help restore the normalcy back in the system.

End of the day I would ask all small investors to stay invested fearlessly as we reiterate our target of 30 K in 2008 and 38 K in 2009 which will see the stocks talking once again with smiles on your face. For traders, avoid trading for 3 weeks. For position traders, have control and select one stock at a time; earn and then leverage on other stocks. For die hard speculators who bet their houses on F & O it is time to understand the real meaning of F & O and our slogan nobody on the earth can make money in F & O. Earn 100 times lose one time all equal….

Yet we are destined to do our job to the best of our ability though there might be critics as usual. We can sail through only those who can still trust us and ready to follow the broader guidelines.

Three things work in LIFE…. WORK WILL and SUCCESS. Will makes human existence to open the doors to success. Work passes these doors brilliantly and happily. At the end of the tunnel success comes to crown one’s efforts.

Courage Courage and Courage....
Is this the end of the Bull market or unfolding a new Bull market…?

Market had reached open interest of Rs 56000 crs in May 06 which was that time thought to be of highest order of overbought condition and market collapsed on the day RPL stock got listed. It crashed from 12600 to 8900 which was sizable erosion in the market capitalisation and industry felt that it was an end of a BULL ERA….

No way, market stood back and entered into a new Bull orbit. New big ticket IPO’s came and got listed directly in the F & O segment plus regulator felt the need of expanding volumes which made them double the size of futures. All set and started roaring and slowly the O I went to Rs 132000 crs.

On plain reading, even above Rs 100000 crs market was looking overbought where some entities started building short positions but market was not ready to budge. The single most factors which was responsible to hold the markets was RELP issue of 3 bn USD. Though it was known to market at first place that huge funds will get transferred to RELP issue the crash was never destined in the normal circumstances.

The reasoning is very clear because India which was a clear case of de coupling of US sub prime effect which in fact had happened in July 2007 ( market reacted in Aug 2007) and hence by and large it was considered as fully factored in. In fact, most of the industry captains went on record that India is the only market where the mitigated losses could be covered by the global players. Then what went wrong……?

The Indian MF has come of age and become a matured industry with its size rising close to 100 bn USD plus was sitting on comfortable cash. However comfortable were they, they could not avoid the temptation of subscribing for the pie of RELP issue. For the first 3 days the issue was subscribed to the extent of 25 times which went on to 80 times which also signifies that ADAG gr too has left any stone unturned to make this a big success and in the process their excess liquidity which was generally used for treasury operations seems got stuck with the wind.

It seems, the situation was very closely watched by BEAR camp who had lost huge money when the gets going became tougher for them and was just waiting for this kind of opportunity. Suddenly global clues went wrong which otherwise could have been controlled by BULLS with a volatility of 1000 to 1500 points which is being seen in every vallan close to rollover session. They themselves use some international trigger and make us aware that no de coupling has taken place.

They started the game as usual but this time the BEARS waiting in wing had different ideas. They broke the back of bulls and allowed the system virtually fail by triggering stop losses of Hedge Funds to begin with, operators and retail off course without saying. This was implanted in the biggest ever drop in O I from Rs 132000 crs to Rs 62000 crs in matter of 4 trading sessions and crash of 5000 plus points.

The attack was in futures this time hence the figures of FII selling Rs 3000 crs or 9000 crs did not attract notice of many. It seems bears had done huge homework where the Bulls can go wrong and planned the affairs in such a manner. It could also be true that some big name must have taken hit of couple of bn USD to create such havoc which could be used for his long term plans.

Nothing is impossible in India. If Pak terrorist can reach PARLIAMENT of India, market terrorist can break the system too.

The only concern on hand is that whether this is the beginning of the bear phases or unfolding of a new bull market….?

The Hon’ble PM and FM and reiterated that there is no change in economic fundaments and the current crisis is due to global clues clearly suggest that this is certainly not a beginning of a bear market. It is for sure an unfolding of a WAVE V of the Bull market with a new SENSEX target of 38000 by Dec 2009.

The views expressed is just a thought process of Mr Chakry and has no conclusion of a bear scam or evidence of such a scam. Logically you may find confirmation only when Nifty crosses 6600 in next 2 months.

Every deep correction has unfolded a new BULL market and this time it is not an exception. This is because the commodity Bull run will last till 2012 and so the equity bull run and if you look at it from other angle FII may sell 3 to 5 bn USD stocks but they are not here to make complete exit. Eventually they want to raise they share in Sensex market capitalisation to close to 60% no matter if they have to invest another 100 bn USD for that.

Market may test lower levels before 31^st JAN in volatile moves and investors will do well by not going aggressively long in F & O whereas for cash stocks this is the best time because you can’t make the top and you can’t make the bottom.

Courage is what it takes to stand up and speak. Courage is also what it takes to sit down and listen.

Reliance SEZ proposal among a dozen cleared

Board of Approval for Special Economic Zones (SEZ) today gave its nod for a dozen proposals including one in-principle approval for a multi-product SEZ by Reliance in Jhaijar district, Haryana.

The BoA, which was to meet on January 18, met here on Monday under the Chairmanship of the Commerce Secretary, Mr Gopal K. Pillai. He informed the board that so far 428 SEZs have been granted formal approvals out of which 194 have been notified as on date. A sum of Rs 52,193 crore had been invested in these notified units.

Arvind Mills to invest Rs 400cr in retail biz

Textile firm Arvind Mills today said it would invest Rs 400 crore to expand its retail business in the next four years, to reach the target of being a billion-dollar mark company.

The company would be investing Rs 300 crore in large-format retail centres and Rs 100 crore in small stores by opening 30 large retail centres (Megamart outlet) and 200 small format stores (Megamart) across 100 cities in the country by 2012.

Around Rs 8-10 crore would be invested in each outlet and the funding would be through the company's internal accruals.

Noting that the value of retail market in India was worth about Rs 11,000 crore and was estimated to grow at the rate of 30-40%, he said the company was targeting a turnover of Rs 2,000 crore by 2012 in the retail sector.

The company today launched its first 'Megamart Outlet Centre' and was expecting the second Megamart outlet at Pune by May, followed by Hyderabad and Bangalore.

About 8 outlet centres and 125 small format stores would be opened by the end of next financial year. The company, presently, has 75 stores across the country.

Stating that Megamart would now move to tier-II and III cities, he said stores would soon be opened in Nagercoil, Tirunelveli, Vellore and Trichy in Tamil Nadu.

Arvind Mills managing director Sanjay Lalbhai said though the retail division's contribution to the company's turnover was presently only around 8%, it was expected to touch 50% by 2012.

Kesar Enterprises - Updates

Kesar Enterprises Ltd has informed that a new Company with the name "Kesar Terminals & Infrastructure Ltd" has been incorporated w.e.f. January 21, 2008 by the Company as its Wholly-Owned Subsidiary having its Main Object to operate storage terminals etc and to carry on the business of tanking, warehousing, storage of liquid or solid goods and all types of infrastructural activities and energy generation.

Domestic Funds net buyers Rs.1998 crs

Gross buyers Rs.3058.50 crs

Gross sellers Rs.1060.20 crs

Net buyers Rs.1998.20 crs

Domestic Funds net buyers Rs.2779 crs (P)

Provisional figures for the day :

Gross buyers Rs.4375.64 crs

Gross sellers Rs.1596.93 crs

Net buyers Rs.2778.71 crs

Fed has announced a 75bps rate cut......

FM says liquidity will not be an

Finance Minister P Chidambaram today said the fundamentals of the economy are strong and liquidity will not be a problem. Chidambaram said there was no reason at all to allow the worries of the Western world to overwhelm us. Our economy is very different from some developed economies which are facing some stress, he said.

The finance minister further stated that Reserve Bank of India as well as banks will provide enough liquidity to brokers and other market players, adding that liquidity will not be an issue.

FM urges calm amid stock market falls

Indian investors should stay calm in the face of sharp stock market falls as the fundamentals of the economy are strong, Finance Minister Palaniappan Chidambaram said on Tuesday.

Indian shares fell more than 11 percent in the first few minutes of trade on Tuesday as panic-stricken investors dumped stocks, setting off circuit breakers that automatically halted trade for an hour. "We had anticipated the market to open on a downward trend and hit the circuit breaker. My advice to investors is to stay calm," Chidambaram told reporters.

"The economy will grow this year at close to 9.0 percent and even according to Dr. Rangarajan's committee report it will grow 8.5 percent next year." Rangarajan heads the prime minister's Economic Advisory Counci

Capital market growth is priority concern: PM

Reacting to the stock market crash, the Prime Minister, Dr Manmohan Singh, today said that corrections do happen in the market and the orderly growth of the stock market was a priority concern for the Government.

Dr Singh told presspersons here that the fundamentals of the economy were eminently strong and the market would grow in an orderly fashion.

“I would like to assure the Indian public that sustaining growth in the capital market is a priority concern of the Government,” he added.