Decline in Indian stock market benchmark index continued for the third week in a row now. BSE Sensex declined 2.29% to close at 19,137 and NSE Nifty 2.35% to close at 5,752 in the past week. The Sensex dropped 4 out of 5 working days. On Monday market was up on Irish rescue deal. Then next four days saw the sharp falls as bribery scandal involving the officials of PSU banks and financial institution unearthed.
My portfolio’s return in the past week was -2.74% and the year to date return stands at 6.66%. Shares of 11 companies in my portfolio declined more than 5% while 4 companies gained more than 2% in the past week. Amara Raja Batteries was biggest saver with 6.36% gain.
Good buys in my watch list
|Script||Sector||3 Years Target||Current Price||Expected Margin|
|Tata Sponge Iron||Metal||700.00||347.95||101%|
|Ess Dee Aluminium||Packaging||942.00||487.05||93%|
|Swaraj Engines||Auto Ancil||850.00||470.35||81%|
|Tractors India Ltd||Construction||1,150.00||680.00||69%|
|Amara Raja Batteries||Auto Ancil||301.60||184.00||64%|
Dr Reddy’s Laboratories Limited has signed an agreement with GlaxoSmithKline (GSK), one of the world’s leading research-based pharmaceutical and healthcare companies, to buy the latter’s oral penicillin manufacturing facility at Tennessee in the US. The financial terms of the acquisition were not disclosed. The transaction is expected to be closed within the first half of calendar 2011.- Business Standard , 28 Nov. 10
Land acquisition for second phase of National Thermal Power Corporation (NTPC) power plant coming up near Mouda may run into trouble as farmers have scaled up their demand for compensation. They are now asking for Rs 25 lakh per acre compensation and job for one member of their family. – Times of India, 26 NOV 2010
The National Thermal Power Corporation (NTPC), India’s largest power producer, has added a 500 MW coal-fired unit at Korba in Chhattisgarh, a company statement said Friday. ‘The new 500-MW unit of NTPC’s Korba super thermal power station in Chhattisgarh has been synchronised with the grid,’ the statement said. – Sify
NTPC has set up a joint venture with the Asian Development Bank and Japan’s Kyuden International Corporation to develop renewable energy projects with a capacity of 500 Mw over the next three years. NTPC will have 50 per cent stake in the JV, while ADB and Kyuden International will contribute 25 per cent each towards the equity share capital of the company, the power company said in a statement. The initial authorised share capital will be Rs 6.5 crore and the paid-up share capital Rs 1 crore. – Sify, Nov 25, 2010
Bharti Airtel Ltd.’s Kenyan mobile- phone unit will begin rolling out 3G services in the first quarter of 2011 as part of a push for more customers and a return to profit at its unprofitable African operations. New products will include e-mail and e-commerce services, Rene Meza, managing director of Airtel Networks Kenya Ltd., said in an interview yesterday in Nairobi, the capital. Airtel is considering subsidizing laptops and Internet-enabled handsets to drive data use in East Africa’s biggest economy, he said. – Bloomberg 23 Nov 2010
IT company Mphasis said its consolidated net profit rose by 20 per cent to Rs 1,090.75 crore for the year ended October 31, 2010, over the same period last year. Revenues rose to Rs 5,036.52 crore during the year ended October 31, against Rs 4,263.88 crore in the same period last year. – The Economic Times, 22 NOV 2010
Mahindra & Mahindra today said it has signed a definitive agreement with Ssangyong Motor Company Limited (SYMC) to acquire 70 per cent stake in the ailing South Korean auto maker at a total cost of USD 463 million (about Rs 2,105 crore). The company said in a statement that it expected the deal to be concluded by March 2011. – Times of India, 23 NOV 2010
Bharat Heavy Electricals Ltd. (BHEL) and GE India Industrial Pvt. Ltd. (GEIIPL), a 100% owned subsidiary of GE, USA, have joined hands for cooperation on Water Treatment Equipment. As per the agreement, BHEL and GEIIPL will jointly engineer and supply water treatment solutions for the Indian market. Over the term of the agreement, through joint working, BHEL will acquire the capability to address large water treatment systems based on GE Products, on its own. – Indiainfoline.com 22 NOV 2010
Eurocor GmbH, wholly-owned subsidiary of Opto Circuits India, announced today the launch of FREEWAY, the latest second-generation, percutaneous transluminal angioplasty (PTA) balloon technology designed for the treatment of critical limb ischaemia associated with peripheral arterial disease (PAD). – Indiainfoline.com 22 NOV 2010
Dr Reddy’s expands horizon
Acquistion of GSK’s facility in the US marks entry into a new therapeutic segment. Already having a deal with GlaxoSmithKline (GSK) for marketing its products in various emerging markets, Dr Reddy’s Laboratories (DRL) had this week inked an agreement to buy the latter’s oral penicillin manufacturing facility at Tennessee in the US. Though the financial terms were not disclosed, the transaction is expected to be closed within the first half of calendar 2011.
DoT gearing up to penalise telcos over network roll-out delays
Even as the government contemplates the imposition of penalties worth over Rs 135 crore on old telcos that have not completed network roll-out in circles allotted to them, the Telecom Ministry is likely to issue showcause notices to new operators for similar lapses. As per the revised figures, Bharti Airtel faces a penalty of Rs 31 crore, while the Tatas (CDMA operations) are likely to be asked to be paid liquidated damages of over Rs 40 crore.
Rural FMGC markets ready to go premium
Market research firm Nielsen has sounded out premium goods marketers to take country roads, saying the rural FMCG market will grow 10 times to $100 billion by 2025 and that the rural consumer is increasingly buying premium and convenience-oriented products.
MphasiS joins billion dollar club
Indian IT and BPO services company MphasiS, which is majority-owned by HP, has achieved the milestone of $1 billion in revenues during the accounting year-ended October 31, 2010. The company posted revenues of Rs 5,037 crore ($1.09 billion) during the period with a growth of 18.1 per cent over the previous accounting year. The Bangalore-based company took about 12 years to achieve this. With sight on the next phase of growth and bring in better alignment in its business, MphasiS has also initiated a restructuring process in partnership with global consulting firm, Boston Consulting Group.
Bharti Airtel: An emperor sized operation
Bharti Airtel is an emperor sized operation in every sense of the term, starting with the standalone gross revenues of Rs 356 bn that it recorded, to its gross fixed asset base of Rs 442 bn (that makes it all possible), to its investment portfolio base of Rs 157 bn, to its gross working capital base of Rs 93 bn, to the humungous net cash flow of Rs 127 bn that it generated, to its 22 subsidiaries and fellow subsidiaries, 2 associates, 3 joint ventures and 18 companies where the management exercises control of some sort, to the Rs 8 bn in cash and bank balances, to the 43 companies that it had related party transactions with in FY10, and the Rs 7 bn in services that it rendered to these related parties and the Rs 41 bn in services that it received in return from these related parties.
|My Portfolio||BSE Sensex||NSE Nifty|
Top 5 holding in my equity portfolio
|Company||Sector||% of Total Value||Average Holding Period||Absolute Return %|
|Tata Global Beverages||FMCG||5||2 Years||111|
|KSB Pumps||Engineering||5||3 Months||-11|
|Mangalam Cements||Cements||5||2 Months||-20|
|Maharashtra Seamless||Metal||5||4 Months||-3|
Shares I bought this month
|Ess Dee Aluminium||490.76|
|Tractors India Ltd||710.47|
|Amara Raja Batteries||190.03|
|Tata Sponge Iron||372.62|
Shares I sold this month
Top 5 most gain (absolute)
|Company||Return %||Average Holding Period|
|Gujarat Gas||202||2.5 Years|
|Dabur India||137||4.5 Years|
|Tata Global Beverages||111||2.0 Years|
|Berger Paints||113||3.7 Years|
Top 5 most loss (absolute)
|Company||Return %||Average Holding Period|
|Tech Mahindra||-18||1 month|
|Tata Communication||-23||10 months|
|Mangalam Cement||-20||2 months|
|Divi’s Laboratories||-15||2 months|