Indian Equity Research and Investment Strategy
The BSE Sensex is down 645 points to 15,896.63 at 2:05 IST. Weak global cues are pulling the market down very badly.
Out of 758 stocks that were locked in lower circuit filter, 93.13% or 706 are from BSE ‘B’ and BSE ‘S’ group.
Lower circuit is the day’s minimum possible level to which stock can fall with no buyers available at that point.
Citigroup in a report released just minutes ago has pushed the “EXIT” button on the stock. Citi analyst underestimated the cost that Suzlon would have to pay in executing its strategy to become the top 3 WTG manufacturers in each market it operates and the pressures that it would put on management bandwidth in managing so many moving parts of a complex supply chain.
Adding to Suzlon’s woes are – (1) Supply delays, (2) tower shortages, (3) key component shortages, (4) negative forex movements, and (5) nacelle custom duty changes in the US. (more…)
The basis of allotment of Rural Electrification Corporation – REC is out. All retail applications for Rs 94,500 / 900 shares have been alloted 900 shares. We had a subscribe recommendation for REC IPO. The stock is expected to be listed in the week of March-17th. See the complete basis of allotment here. (more…)
The US sub-prime crisis has hit ICICI Bank. The bank did provide US$75m in 4QFY08 for marked-to-market (MTM) losses on its CDO exposure and the UK subsidiary’s investment portfolio. However, the bank concealed further losses it is facing until Minister of State for Finance Pawan Kumar Bansal said in the parliament that ICICI Bank’s cumulative MTM losses on its international business are $264m (Rs10.5b), as at Jan end.
CLSA has cut earnings estimate of ICICI by 5-7% for FY08. The bank is still not very clear on its stand about USD 2.2 bn exposure to CDO/CDS. Further MTM losses can be expected.
HSBC in a report released just a while ago has downgraded Television Eighteen to Neutral from OVERWEIGHT. TV18 runs India’s worst Business News Channel – CNBC TV18. Revenues have grown at a steady clip, expenses have grown in line. HSBC expected operating expenses to increase by 20% y-o-y but while staff costs and other production expenses have increased by 23% and 21% respectively, increase in marketing expenses by 373% has resulted in the overall expenditure increasing in line with revenues. (more…)
The Securities and Exchange Board of India, the highest regulating authority of the Indian capital market under its new Chairman, C.B.Bhave has started a crackdown operation Insider Trading to expose dirty CEOs and Chairmans in corporate India.
The first Axe has fallen on MCX’s Jignesh Shah reports LiveMint. Jignesh Shah appears to be under investigation by the market regulator for alleged violation of insider trading regulations, according to a draft offer document filed by MCX with the stock market regulator.
Jignesh Shah owns 45% in Financial Technologies, which was the darling of speculators on exchanges. SEBI is investigating the case since Nov-07 but under C.B.Bhave, it is very unlikely that Jignesh Shah will go unpunished. Incidentally, their are rumors that Jignesh Shah is backed by Mukesh Ambani who also held close to 1% stake in the company in 2004.