MARKET COMMENTARY FOR THE DAY 14 JUNE 2010

Today was yet another day of celebration for the bulls as the Sensex continued its upward spiral to touch 17338.17, up by 273.22. The Nifty magnified the intensity of the celebration by rising to touch 5197.70, up by 78.35 points. The market breadth as reflected by Nifty stocks was quite positive – 31 advances and 19 declines. Reliance Capital, Reliance Power and Infosys were the top three gainers registering gains of 5.99, 5.53 and 4.40 respectively. Bharti Airtel, Idea and Tata Motors lost 1.61, 1.01 and 0.61 per cent respectively.

On the macro front, our forex reserves stood at US $ 271 billion out of which roughly 19 billion plus is in the form of Gold reserves. I often pray that none of my country folks should ever sleep on an empty/half empty stomach and I hope my prayer is being answered by Providence everyday by default, since my country is indeed rich! Is our FM listening and will our politicians ever care to look into paradox of such type.

SKS Microfinance is proposing to launch IPO by July 2010. The company plans to sell 16.79 million shares during its IPO thereby diluting 12-12 per cent of its share capital. And the price band? Well, keep guessing. By the way, some time back Vikram Akula sold a part of his stake to Tree Line Asia at Rs.637 per share

Spice Mobility [ earlier Spice Mobiles ] is planning to invest Rs.1.2 billion for marketing and promotion this fiscal as it focuses on building its brand in the Metros and Tier-I cities. Watch this stock and just think about how successfully Spice will be able play the cell game with companies like Nokia. This year, on 29 January there weren’t many to take a shot at this one when it was quoting at a low of Rs.32.50/share. Today the stock is quoting at Rs.70.10 per share. Going forward, I guess Spice Mobility is going to go places!

Shareholders of Tata Teleservices have reason to celebrate as the company has put on a brave fight in a fierce competitive landscape and the company is slated to reach 100 million subscriber mark this year.

In corporate news, Kalanithi Maran of Sun TV fame, made the mandatory open offer to buy another 20 per cent from the public at Rs.57.76/share.

Kansai Nerolac Paints Ltd has rewarded its shareholders with 1:1 bonus issue.


Kishor S. Khot, [Kishor@hbjcapital.com], Equity Strategist, HBJ Capital Services Pvt Ltd