NUCLEAR DEAL IMPACT

After a long political fight and numerous issues Nuclear deal is executed. Investors and traders are updating with the news but in fact mass public is unaware about the real impact of Nuclear deal.

1. Atomic Energy Act under which all activities in the nuclear field remain the domain of government entities need to be amended to allow pvt. sector participation, Currently, the private sector can supply equipment, even those as crucial as the nuclear reactor vessel, but the power plant can be operated only by a Government-controlled entity such as the Nuclear Power Corporation.

2. India target of 60,000 MW, with investment of Rs 600,000 crore, since each MW of nuclear power costs about Rs.10 crore could be achieved by active participation from the private sector so the Atomic Energy need to be amended.

3. India is to emerge as the “nuclear hub” for the world, where local companies would form alliances with global companies for supply of various nuclear components and reactors provided there is low cost of production in India, as the other developed countries,

4. The deal will enable India to get nuclear fuel for its reactors, which have been running at almost half their capacity

5. The biggest opportunity could come from the US but for this to happen, US based nuclear firms would have to wait for the clearance of the deal by the US Congress to commence trade with India. And once that happens, GE would be one of the biggest gainers as it already has a JV with Hitachi and it would be using this JV to enter India. It would also look for tie-ups with Indian companies as its strength lies in technology.

6. Currently in India, all nuclear power, which comes under the Government of India is run by Nuclear Power Corporation of India Ltd (NPCIL). It means it has a monopoly in India and it has already identified four reactor manufacturers — Westinghouse Electric Company, GE-Hitachi, Areva and the Russia’s atomic energy agency Rosatom. This is based on “suitability” of technical parameters for placement of orders that will form the first phase of the Centre’s plan to build 40,000 MW of nuclear capacity by 2020.

7.NPCIL hopes to set up “Nuclear Parks” or reactor clusters, which would house around 8 reactors of 1,000MW each. The orders would initially be placed for around two reactors of 1,000 MW at each of the locations, following which more reactors could be added. It has identified four coastal sites across Gujarat, Andhra Pradesh, Orissa and West Bengal.

8.Foreign reactor suppliers are unlikely to be allowed to own equity in the projects in the first phase.

9.This entry of India into the nuclear club bodes well not just for the country but also for other countries. Russia has offered India to invest in its upcoming international uranium enrichment centre in, Siberia, in lieu of paying for nuclear fuel to be supplied to the Koodankulam nuclear station. French company Areva NP (a JV between Areva and Siemens), Russian company Rosatom, USA’s GE, Toshiba Corporation, Westinghouse Electric Co would soon start queuing up for a bite into the succulent nuclear pie of India. Then there are the uranium supplying countries – Kazakh and Canada which are also eager to do business with India. Australia will supply uranium to India only if it signs the NPT.

BUZZING STOCKS OF THE DAY 08/09/2008

Aban Offshore surged by 3.19 per cent to close at Rs 2285.69 a share after the companys step-down overseas unit Venture Drilling AS won an 18-month contract from Maersk Oil Angola


Hindustan Petroleum Corporation (HPCL) flared up on Tuesday to close 12.09 per cent higher over the previous closing at Rs 225.80 after crude oil prices slipped below $106 a barrel.


GAIL India stock rose by 3.7 per cent to close at Rs 420.55 as the companys shareholders at a meeting, on Thursday, approved the issue of bonus shares (one share for every two shares.


Bilcare stocks rose 1.32 per cent to Rs 744.60 a share on reports that the firm has tied up with US largest medicine retail chain Wal-Mart to provide innovative packaging solutions


Swaraj Mazda (SML) shot up by 13.85 per cent to Rs 295.95 a share on reports that Mahindra & Mahindra (M&M) is likely to sell its 14.04 per cent stake

RESULT ANALYSIS OF " GMDC "

Gujarat Mineral Development Corporation is a Gujarat State government undertaking engaged in the business of lignite, bauxite and fluorspar mining as also power generation units based on lignite.The company is presently producing about 80 lakh MT of lignite at its three mines. New mines have been developed at the various locations at Surat to cater to South Gujarat where estimated annual production would be 10 lakh MT. 10 lakh MT of lignite production at Amod near Bharuch would fully contribute in FY09. 30 lakh tonne of lignite production is estimated from Bhavnagar mines to cater to Saurashtra region and Central Gujarat. So, in FY 09, the production of lignite would rise by about 40%. The company also has 250 MW power plant in operation based on lignite.Lignite is as brown gold, is an alternative for coal, which is in great demand, as natural resources are becoming scarce all over the world.

Net sales is down 15%, and though it managed to reduce its operating expenses, by 25% which itself is a feat given the rising costs in Q1. Despite that EBITDA dropped 3% and then interest outgo rose 215 and depreciation by 4% and this pushed down the PBT growth by 19%. And then it added back the expenses provided for overburden removal and loading of lignite and this was to the tune of Rs.38.88 crore. This boosted the PAT by 14% at Rs.72.35 crore. The company might have managed to show an increase in the last leg but the profit margins indicate the pressure. OPM slipped down from 55.08% to 48.15% and NPM from 26.53% to 19.75%.The fourth quarter of FY08 had been its best and in comparison, all else.Its income from mining fell from Rs.292.45 crore to Rs.239.40 crore. The income from power also fell, from Rs.50.91 crore to Rs.40,52 crore.

YoY, the company has done well and that to a large extent is very reassuring. The company continues to remain on a good wicket, it’s just that Q4FY08 was its best and expecting Q1CY09 to match up or exceed would be unfair, especially with many companies showing a slower growth.

The stock went ex-bonus from 1^st September and on 5^thSeptember it touched a new low at Rs.192. Currently it is quoted at Rs.195.
As the stock is fundamentally good stock and is under pressure due to bad market sentiment so one may hold on the position in the stock for short - medium - long term prospective.

ASTROLOGICAL FIGURES FOR NIFTY THIS WEEK

Astrological prediction regarding Nifty Range for the week 08/09/2008 to12/09/2008 are assumed as below :

The market to remain volatile during with the week with a target of 4050 on lower end while 4600 on the upper end.

DISCLIAMER

Contents have been given in good faith and purely with an astrological and independent view. Readers are strictly advised to use this information at their own risk. It is not an offer to act on this information or buy, sell or hold securities. Author would not be liable for any loss or profit arising out of readers acting on the information provided herein.

IPO : "20 MICRON" -A BAD INVESTMENT IDEA

With a public issue of 43.51 lakh equity shares of Rs.10 each, in the band of Rs.50 to 55 per share , 20 Microns is entering the capital market on 8^th Sep 2008, with offer for sale of 26.76 lakh shares.

The company is into mining and mineral business with its plants located at Rajasthan , Gujarat & Tamil Nadu. Financial Year 2008 topline of the company was at Rs.108 crores, which includes trading turnover of Rs.38 crores. Net profit for the year was at Rs.4.59 crores, with an EPS of Rs.3.69 (Appx).

Issue of 16.75 lakh shares even at the upper band of R.55, it would be able to accumultae Rs.9.20 crores . This would be used to finance the ongoing expansion at five places, estimated to have an outlay of Rs.19.20 crores, including issue expenses and general corporate purposes. Rs.10 crores is being mobilized as a term loan from IDBI.

Financial situation as at 31.03-08 has not been very good. Inspite of gross block of Rs.76 crores as at 31-03-08, the turnover of the company for FY 08 was just Rs.69 crores. Debt of the company was at Rs.46.51 crores on a net worth of Rs.28.20 crores, resulting in a Debt equity ratio of 1.65 to 1. Even expansion is being carried out on an estimated debt equity of over 1:1. Post issue, equity of the company, will rise to Rs.14.12 crores with promoters stake of 43% only.

Present issue, even if considered at the lower band of Rs.50, is being made at a PE ratio in double digit, which is definitely very high.

It Could be finally concluded that investment in this stock would be a bad idea.

MAJOR CORPORATE ANNOUNCEMENTS OF 08/09/2008

Aban Offshore Ltd has informed BSE that a Contract has been signed for the deployment of the new build jack-up rig Deep Driller 7 offshore Thailand, for a firm period of 3 months, extendable up to 6 months. The estimated revenue from the contract is USD 18 million (equivalent to INR 79.20 Crores) for the firm period. The rig is likely to start mobilizing to the location during the second week of September, 2008.

Sterlite Industries India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on September 09, 2008, to consider proposal for restructuring of the businesses of the Company.

Anant Raj Industries Ltd has informed BSE that the Central Government vide its notification No S O 2148(E) in the gazette of India, has notified the Company's project for setting up an IT Park as SEZ for information technology / information technology enabled services Sector in respect of 10 Hectare of plot owned by the Company at Rai, Sonepat, Haryana.

BROKERAGE HOUSES VIEWS

ICICI DIRECT.COM

1. The festive season starting next month would help bolster Auto sales. Demand is expected to increase owing to the planned newer launches and upcoming festive season, which generally sees an increase in vehicle sales.


2 . The recent volatility on the stock markets is posing challenges to investors looking for safe returns. High dividend yield stocks offer a safe haven to investors where safety is more of a priority than high returns. So even if the market remains volatile, going ahead, an investor can still get a decent return on investment , thanks to good dividend yielding stocks. The dividends are paid no matter what direction the stocks move and can provide a higher yield on investment a weak market.


RELIANCE MONEY

Weekly Technical Watch, levels of 4220 and then 4000 on weekly charts will continue to act as a strong support while on higher side levels of 4420 and then levels of 4600 will act as strong hurdle going forward.


NETWORTH STOCK BROKING

Long term valuation of Ranbaxy labs is very attractive. Networth has considered 2 scenarios, in scenario 1 it has assumed that 100% comes in for Tender and in scenario 2 it has assumed that 75% comes in for Tender. Under both the scenarios it has come to the conclusion that the long term valuation of the stock very attractive.


ANGEL BROKING

To accumulate TATA MOTORS from neutral with a target price of Rs 445 in its September 2, 2008 research report. "At current levels, we believe substantial portion of the concerns are now reflected in the TML stock price. Further, after considering the risks applicable to the consolidated entity, effects of the dilution owing to the Rights issue and conservatively assuming USD 100 million Profit in CY2009E for J&LR at 0.8% NPM (global peers have NPM in the range of 2-3%), we assign a target multiple of 9x FY2010E consolidated Earnings to the stock. Thus, considering limited downside from current levels, we upgrade the stock to Accumulate from Neutral, with a target price of Rs 445

MARKET MOOD AHEAD

FROM EXTERNAL SOURCE :

" It is heard from some external sources that a bad news is ahead to drive in to market by week end or in the upcoming week. An American based bank (Specific name has been intentionally kept hidden) is going to reveal a major bank scam , thereby to make negative effect on International market and as a result Indian markets are not going to remain apart".


Though markets are running on a choppy mood and are trading in a range thereby searching for solid news or backing to jump and break the strong resistance level. As soon as market start to recover the selling pressure is so high that it get drowned again. We need a multiple strong positive news one after another to give strong support thereby creating a scene where investor start accumulating and seller pause there action.

Though the government of the country has almost stabilized but yet a long term stabilization will be after the due elections ahead.The major events could be as Crude under normal range ,Inflation figures under control, Metal under control , Mutual fund buying , FII funds rush in and selling pressure by big houses to a halt. All these factors could help to drive away the market

FREE TIPS AVAILABLE ,YET MULTIBAGGER STOCK ADVISOR REQUIRED ?

No doubt there are uncountable advisor and stock experts in the market. Some are technical analyst while some are fundamentalist . Lots of rumors and market tips and news are upcoming in the market every second . right from day trading to short term , medium term and long term trading and also multi bagger picks are available in the market free of cost. It is a general factor that all those could not be perfect but some are authentic , if received from reliable high end source but it has an associated negative point which we generally overlook and that lead us to be beaten up.

First , why all news are not perfect but only selective news are authentic , why rumors are spread? the answer is very simple because if some investor or trader are stuck in a particular stock and the stock is beaten up in any correction and they want to get out of the stock they generally spread the rumors that the stock is good and multi bagger o that demand generates and the price goes up and as soon as the price goes up the operators get out of the counter.

Now , why even after getting authentic tips from reliable source people fail to earns????????

This is very interesting to answer this question as , some investor are so over intelligent and smart that they could afford to invest lacs of rupees in equity market which is 100% risky but they can hardly manage to spend a negligible fee of an investor with a view that if they could manage to get the news at free of cost then why they should join under any experts and that concept lead them to get drowned.
This is so because they get in to the stocks for which they get the tips but remain invested in to them , no doubt the stock spurts and start soaring making a generous feeling of proud in investor 's mind with handsome increment in there portfolio on daily basis. But one fine morning when the stock market crashes all of a sudden the entire profit accumulated in the period are drained away along with there principal investment leading them to a feeling of apologize that they would have exited the position before hand. But as they had no direction so they keep waiting for multiplying there money day after day.

Without joining an expert advisor you could make profit but that profit would be always deemed or accrued profit which could be viewed in electronic form of your portfolio value but you could never ever manage to take away the profit to your home and make utilization of that earned money instead on the contrary you will not only loose a part of your principal investment but also be stuck with the balance investment as you can't sell your stocks at losses so your entire investment is ultimately in vain without earning a penny and that too for an indefinite period.

WHY MULTIBAGGER STOCK ADVISOR IS REQUIRED?

No doubt there are uncountable advisor and stock experts in the market. Some are technical analyst while some are fundamentalist . Lots of rumours and market tips and news are upcoming in the market every second . right from day trading to short term , medium term and long term trading and also multibagger picks are available in the market free of cost. It is a general factor that all those could not be perfect but some are authentic , if received from reliable high end source but it has an associated negative point which we generally overlook and that lead us to be beaten up.

First , why all hnews are not perfect but only selective news are authentic , why rumours are spread? the naswer is very simple because if some investor or trader are stuck in a particular stock and the stock is beaten up in any correction and they want to get out of the stok they generally spread the rumours that the stock is good and multibagger o that demand generates and the price goes up and as soon as the price goes up the curropt traders get out of the counter.

Now , why even after getting authentic tips from reliable source people fail to earns????????

This is very interesting to answer this question as , some investor are so over intelligent and smart that they could afford to invest lacs of ruppes in equity market which is 100% risky but they can hardly manage to spend a negligible fee of an investor with a view that if they could manage to get the news at free of cost then why they should join under any experts and that concept lead them to get drowned.
This is so because they get in to the stocks for which they get the tips but reamin invested in to them , no doubt the stock spurts and start soaring making a generous feeling of proud in investor 's mind with handsome increment in there portfolio on daily basis. But one fine morning when the stock market crashes all of a sudden the entire profit accumulatd in the period are drained away along with there principal investment leading them to a feeling of apologise that they would have exited the position beofre hand. But as they had no direction so they keep waiting for multipying there money day after day.

Without joining an expert advisor you could make profit but that profit would be always deemd or accrued profit which could be viewed in electronic form of your portfolio value but you could never ever manage to take away the profit to your home and make utilisation of that earned money instead on the contarary you will not only loose a part of your principal investment but laso be stuck with the balance investment as you can'tsll your stocks at losses so your entire investment is ultimately in vain without earning a peny and that too for an indefinate period.