Takeover of Weaker Banks

The Reserve Bank of India appears inclined to encourage takeover of weak/sick urban co-operative banks (UCBs) by domestic scheduled commercial banks (SCBs).

According to the central bank, where proposals for amalgamation within the UCB sector (i.e. amalgamation of weak/ sick UCBs with strong UCBs) are not forthcoming, it is proposed to provide Deposit Insurance and Credit Guarantee Corporation support to the amalgamation scheme involving transfer of assets and liabilities (including branches) of legacy cases of UCBs to domestic SCBs.

Takeover legacy

The takeover of legacy cases of UCBs – UCBs having negative networth as on March-end 2007 – by domestic SCBs will be allowed provided the amalgamation scheme ensures 100 per cent protection to depositors, the RBI said in the second quarter review of its monetary policy for 2009-10.

The prospect of acquiring a readymade infrastructure and business could prompt SCBs, especially from the private sector, to pursue acquisition of weak UCBs, said Dr Vinayak Tarale, Secretary, Mahahrashtra State Co-operative Banks’ Association.

In case the amalgamation scheme provides for each depositor (of a weak UCB) being paid or credited with, on the date on which the scheme comes into force, an amount which is less than the original amount and also the specified amount, the Corporation, according to the provisions of the DICGC Act, will pay to depositors the difference between original amount and the amount so paid or credited/ the specified amount, whichever is less.

Guidelines

The central bank said it will be issuing detailed guidelines on DICGC supported transfer of assets and liabilities of UCBs to SCBs in legacy cases.

According to the RBI’s latest report on Trends and Progress of Banking in India, out of 1,721 UCBs in India, 23 per cent or 392 UCBs fell in the weak and sick banks category as of March-end 2009

Indiabulls Power, a subsidiary of Indiabulls Realty has fixed its initial public offering (IPO) price band at Rs 40-45 per share. The minimum bid lot will be 150 equity shares.

The IPO of 390, 700,000 equity shares, including a green shoe option of retaining 50,900,000 equity shares will open for subscription on October 12, 2009 and close on October 15.

Updates on Stocks

UTV Software Communications Ltd has informed BSE that the Hon'ble High Court of Judicature at Bombay by an Order made on the September 11, 2009, has directed that a meeting of the equity shareholders of the Company be convened to consider and approve the Scheme of Arrangement relating to UMP Plc, UTV Motion Pictures (Mauritius) Ltd. and the Company. The said meeting will be held on October 14, 2009.

Jindal Cotex to List on 22 September 2009

Acrylic and polyester yarn maker Jindal Cotex will list on the Bombay Stock Exchange and the National Stock Exchange on 22 September 2009.

The Ludhiana-based company had fixed issue price at the top end of the Rs 70 - Rs 75 a share price band set for the initial public offer (IPO).

The issue price of Rs 75 discounts the company's year ended March 2009 earnings per share (EPS) of Rs 1.7 by a price earning (PE) multiple of 44.11.

The public issue, which closed on 1 September 2009, was subscribed 2.20 times. The company got bids for 2.47 crore shares as against 1.12 crore shares offered.

Market Today

trong response to the initial public offer of Oil India, an
improvement in business confidence of India Inc and revival of
monsoon rains helped key benchmark indices extend gains for the
second running day. The Sensex surged 327.20 points or 2.09% to
16,016.32, up 223.05 points from the day's low and off just 19.18
points from the day's high. The barometer index BSE Sensex surged
past the psychological 16,000 mark in late trade. Both the
frontline indices - the BSE Sensex and the 50-unit S&P CNX Nifty
settled at their highest level in more than 15 months. Global
stocks surged after the G20 leaders pledged to maintain stimulus
measures.

Today's rally came on the back of higher turnover. The BSE clocked
a turnover of Rs 6,055 crore as compared with Rs 5,722.02 crore on
Friday, 4 September 2009. The market breadth indicating the overall
health of the market was strong. Realty, banking and metal stocks
were at the forefront of today's rally. The BSE FMCG index was the
lone loser among the sectoral indices on BSE. In stock-specific
activity Tata Motors surged almost 13%. ICICI Bank jumped around 7%
and Sterlite Industries gained around 6.5%

L&T Finance Ltd. NCD

L&T Finance Ltd., has come out with an IPO of Secured Redeemable NCD for Rs.1000 Crs ( Rs.500 Crs. with an option to retain oversubscription upto Rs.500 Crs. ).

IPO opens on 18/08/09.

Tenor - 60, 88 & 120 months.

Very attractive interest rates - 10.24% for 120 months ( against the prevailing interest rates of around 8% in the market for other instruments)

Minimum investment Rs.10,000/- & Maximum investment under retail category Rs.1 Lac.

Retail Category restricted ONLY to Individuals & HUFs.

NO TDS - whatever may be the investment amount.

CARE AA+ rating by CARE & LAA+ rating by ICRA.

Demat account is mandatory as allotment is only on electronic mode.

Allotment on "First Come First Serve" basis.

Listing in NSE - to ensure any time liquidity.

ADANI POWER LIMITED IPO
Symbol - Series
APL EQ
Issue Period
July 28, 2009 to July 31, 2009
Issue Size
301,652,031 EQUITY SHARES [including Anchor investor portion upto 52,857,366 equity shares]
Issue Type
100% Book Building
Face Value
Rs. 10/-
Price Range
Rs. 90 To Rs. 100.
Tick Size
Re. 1/-
Market Lot
65 Equity Shares
Minimum Order Quantity
65 Equity Shares
Maximum Subscription Amount for Retail Investor
Rs.100000
IPO Market Timings
10.00 a.m. to 5.00 p.m.
IPO Grading
IPO Grade 3
Rating Agency
ICRA Limited
Global Co-ordinator and Book Running Lead Manager
DSP Merrill Lynch Ltd,
Book Running Lead Manager
Enam Securities Private Limited, IDFC - SSKI Limited, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, ICICI Securities Limited and SBI Capital Markets Limited
Syndicate Member
Enam Securities Private Limited, Edelweiss Securities Limited, India Infoline Limited, JM Financial Services Private Limited, Kotak Securities Limited,SBICAP Securities Limited, Sharekhan Limited and UBS Securities India Private Limited
Categories
FI, IC, VC, MF, FII, FVCI, SIDC, PF, PEF, MLA, BDFI, NIF, CO, IND, HUF, NRI , OTH EMP and DIR
No. of Cities with Bidding Centers
58
Name of the registrar
Karvy Computershare Private Limited
Address of the registrar
Karvy House, 46, Avenue 4 Street No. 1, Banjara Hills, Hyderabad 500 034.
Contact person name number and Email id
Contact Person: M. Murali Krishna Toll free no: 1-800-345-4001 Tel: (91 40) 2342 0815-28 Fax: (91 40) 2343 1551Email: adanipower.ipo@karvy.com Investor Grievance Email: adanipower.ipo@karvy.com
Prospectus
Click Here
Application Form
Click Here
Trading Member List
Click Here
IPO Grading
Click Here

Market Today

The market recovered today after last two days' slide. The BSE Sensex had lost 347.89 points or 2.29% in the previous two trading sessions. Inflation measured by the wholesale price index (WPI) declined 1.17% in the 12 months to 11 July 2009, as compared with previous week's annual decline of 1.21%, government data showed today, 23 July 2009. Inflation has been declining for the sixth straight time in the 12 months to 11 July 2009 In a move that my boost sentiment, foreign institutional investors (FIIs) and the non-resident Indians (NRIs) have been allowed to invest in Indian Depository Receipts (IDR), according to the operational guidelines issued by the Reserve Bank of India on Wednesday, 22 July 2009. FIIs, including the Securities & Exchange Board of India (Sebi) approved sub-accounts of the FIIs registered with Sebi and NRIs may invest, purchase, hold and transfer IDRs of eligible companies resident outside India and issued in the Indian capital market, subject to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000. India's infrastructure sector output grew 6.5% in June 2009 from a year earlier, higher than an unrevised 2.8% in May 2009, government data released today, 23 July 2009 showed. During April-June 2009 period, the output rose 4.8%, compared with 3.5% in the same period last year. The infrastructure sector accounts for 26.7% of India's industrial output.

Market Up

BSE 30-share Sensex was up 383.99 points or 2.69%. Finance
Secretary Ashok Chawla's comments that the government's record
market borrowing programme would not pressure bond yields and
interest rates further bolstered bulls. Revival of the annual
monsoon this month also underpinned sentiment.

Auto, IT, power, FMCG, healthcare stocks rose. But Index
heavyweight Reliance Industries pared gains. India's largest IT
firm by sales TCS rose ahead of Q1 June 2009 result. The market
breadth, indicating the overall health of the market, was strong.
All the sectoral indices on BSE were in green.

India's monsoon has revived this month after a dismal start last
month. Rainfall in the week to 10 July was 6% more than the
long-term average. For the 1 June-15 July period it was 27% below
normal, improving from a deficit of 36% up to 8 July.

The weather office has also forecast widespread rainfall in the
next five days in most regions of India where more than two-thirds
of the people live in villages and 60% of the farm land depends on
the annual rains. The weak start to the vital June-September
monsoon rains had stoked fears of crop failure, encouraging the
government to ban wheat exports and prepare contingency plans.
While the monsoon rains have picked up, progress has been uneven,
causing floods in some areas and drought in some districts which
are not major crop producers.

AXIS Bank Ltd has announced the following Unaudited results for the quarter ended June 30, 2009:

The results for the Quarter ended June 30, 2009

The Bank has posted a net profit of Rs 5620.40 million for the quarter ended June 30, 2009 as compared to Rs 3301.40 million for the quarter ended June 30, 2008. Total Income has increased from Rs 28912.40 million for the quarter ended June 30, 2008 to Rs 38641.30 million for the quarter ended June 30, 2009.

Stocks To buy in current Market Condition

1. IndiaBulls Financial -- cmp 162 Target 180
2. RCom -- cmp -- 255 Target 290
3. Aban offshore -- cmp 705 Target 800
4. Voltas -- cmp 120 Target 130
5. Tata Motors -- cmp 270 Target 300
   

Market down more than 400 Points

Media reports that the government will have a disinvestment road
map in place in about three months to bridge the high fiscal
deficit, may cap the fall.

Asian stocks fell for a sixth day today, led by finance and mining
companies, as an unexpected drop in Japanese machinery orders
fanned concern a global economic recovery will falter. Key
benchmark indices in China, Hong Kong, South Korea, Singapore and
Taiwan were down by between 1.16% to 2.17%.

Japan's Nikkei fell 2.45% after the latest data showed Japanese
core machinery orders fell 3% from a month earlier in May 2009.

Trading in the US index futures indicated Dow could fall 20 points
at the opening bell today, 8 July 2009.

US markets closed deep in the red yesterday, 7 July 2009 as stocks
fell to their lowest level in 10 weeks amid growing doubts about an
economic recovery. The Dow slipped 161.27 points, or 1.9%, to
8,163.60. The S&P 500 index fell 17.69 points, or 2%, to 881.03.
The Nasdaq Composite Index lost 41.23 points, or 2.3%, to 1,746.17.


Back home, the Indian government is reportedly planning to sell
about 10-20% stake in listed blue chip companies. Among those
likely to be targeted are ONGC, Indian Oil Corporation (IOC), NTPC,
Bharat Heavy Electrical (Bhel) and Steel Authority of India (Sail).
Considering that these companies are profitable, selling stakes at
the opportune time could fetch the government a neat revenue that
could help bridge the fiscal deficit.

The government set an very small target of Rs 1120 crore from
divestment for the financial year ending March 2010 in the Union
Budget 2009-2010 which it unveiled on Monday, 6 July 2009.

BUDGET 2009

Finance Minister Pranab Mukherjee set a sharply higher fiscal
deficit target to 6.8% for the financial year ending March 2010.

Volatility was immense. The market surged in choppy trade ahead of
the Union Budget in early trade. The Sensex crossed the
psychological 15,000 mark in early trade. The market extended gains
gains after the Finance Minister Pranab Mukherjee said there is
need to return to 9% growth at the earliest. A sell-off gripped the
market later. The market cut losses after a sharp intraday fall in
early afternoon trade.

The market was expecting some announcement on decontrol on fuel
prices but the FM only said that a panel will be set up to look
into the pricing of petrol and diesel. The market was also
surprised the FM keeping quiet on Foreign Direct Investment policy.


The projected FY 2010 fiscal deficit is much higher than the 5.5%
deficit forecast by Mukherjee in an interim budget in February
2009, and also higher than the 6.2% deficit recorded by the
government in the previous year ended 31 March 2009.

The finance minister has forecast an increase in plan expenditure
by 34% and non-plan expenditure by 37%. The total projected
budgetary spending in 2009-10 stands at Rs 10.23 lakh crore. The
government has proposed an increase in the allocation for
government welfare schemes by 45%. Expenditure on Bharat Nirman has
been hiked by 45%. The government has allocated Rs 3,91,000 crore
under the National Rural Employment Guarantee Scheme this year. The
allocation for rural roads scheme has been raised by 59% in
2009-10.

FM has increased personal income tax exemption by Rs 15,000 for
senior citizens and by Rs 10000 for others. The 10% surcharge on
personal income tax has been scrapped. The FM minister has scrapped
the Fringe Benefit Tax and also suggested removal for the
Commodities Transaction Tax (CTT). He has proposed no changes in
corporate tax structure. He said states agreed on basic structure
of goods and services tax. He said the government will pursue
structural changes in direct and indirect taxes and committed for
further tax reforms. He said fiscal expansion to go a long way in
reviving growth.

The Minimum Alternate Tax (MAT) has been hiked to 15% of book
profit from 10% of boom profit

The Finance Minister (FM) said the plan it to a return to a path of
9% at the earliest and to deepen and broaden the agenda for
inclusive development. The FM forecast a 6.7% GDP growth for FY
2010.

The government has extended agriculture debt waiver by 6 months and
provided additional Rs 1000 crore over interim budget for
irrigation. Budget will provide additional subvention of 1% to
farmers who pay short term farm loans on schedule and target for
agriculture credit is set at Rs 3,25,000 crore. He said government
will develop long distance gas pipelines to develop national grid
and LNG infrastructure in the country.

The government has restored 8% excise duty on manmade fibres. It
has meanwhile, scrapped the excise duty on branded jewellery. With
regards to the customs duty, the duty on LCD panels has been cut to
5% from 10%. The government has imposed a 5% customs duty on set
top boxes. The customs duty on wind power equipment has been cut to
5% from 7.5%.

The finance minister said fiscal deficit target will be closer to
3% of GDP by FY 2011-12 assuming a global economic recovery. He has
assumed GDP growth of 8% in FY 2011 and 9% in FY 2012.

Hike in Petrol and Diesel Prices from Midnight

The government has hiked prices of petrol and diesel prices by Rs 4 per litre and Rs 2 per litre respectively. The government though decided to leave prices of kerosene and liquefied petroleum gas (LPG) untouched. The hike comes into effect from midnight

Particulars	Mahindra Holidays & Resorts India Limited
Planning to Offer	92,65,275 no. of equity shares
Face value	Rs.10/- each at a price to be discovered through book building process
Price band announced	Rs.275/- to Rs.325/- per equity share
Issue is scheduled to pen	23.06.2009
Issue is scheduled to close	26.06.2009
Managers to the Issue	HSBC Securities and Capital Markets (India) Private Ltd,Kotak Mahindra Capital Company Ltd, SBI Capital Markets Ltd
We find from our records that you are one of the regular investors in IPOs/equity shares. We thought it appropriate to bring to your notice the following:
SEBI has recently introduced a new process applicable to retail individual investors popularly referred to as ASBA (Application Supported by Blocked amount) process. Under this process, the bid amount is blocked in your account at the time of bidding. If and when an allotment is made against your application to the extent of money due on the shares allotted, your account will be debited and the money will be remitted to the company. Therefore, the bid amount remains in your account earning interest during the whole process period. Your account will be debited only to the extent of shares allotted, if any,and the remaining amount will be unblocked. There will be no refund as such and therefore the problems related to non-receipt of refund will not be encountered by you. This is a facility extended by some self certified syndicate bankers (SCSBs) who have registered as such with SEBI. Currently the following banks have been identified as SCSB banks.
1.Corporation Bank 2.Union Bank of India 3.HDFC Bank 4.State Bank of India 5.ICICI Bank Ltd 6.IDBI Bank 7.AXIS Bank 8.Kotak Mahindra Bank Ltd 9.State Bank of Bikaner & Jaipur 10.Bank of Baroda		11.State Bank of Hyderabad 12.Punjab National Bank 13.Bank of India 14.Yes Bank Ltd 15.Citibank 16.HSBC Ltd 17.Vijaya Bank 18.State Bank of Travancore 19.Bank of Maharastra
SEBI may register more SCSB (Self Certified Syndicate Bank) banks as and when they undergo the self certification process. In case your bank is not one of the SCSB as on date/you are not dealing with any of the bank listed above, you are requested to verify with them as to whether they have got subsequently registered as SCSB.
In case you are the client of any of the above banks and you wish to apply under the retail individual investors category, we strongly advise you to consider making an application under the ASBA process. Should you require more details on this, please do write to us.
In case your bank is not an SCSB bank, you may participate in the IPO through the normal conventional process. Here again, we request you to ensure the following:
The application form is filled in all respects and duly signed by the applicants. The demat account details provided therein pertain to the applicants. The bank account details registered with the depository are correct. In case you have not provided the 9 (nine) digit MICR code to the depository participant, please do the same, so that refunds, if any, can be sent through electronic means wherever possible. Please retain the photocopy of the entire application for your future reference. Please ensure that your application is submitted to one of the bidding centers listed in the inner pages of the application booklet. We find that a large number of banks, particularly in the nationalized sector, have brought their branches under total computerization / core bank solution. In the process, account numbers of their clients have under gone changes. Please ensure that the account number registered with your DP is the current new number allotted, by the bank.

Volatile Market Today

Volatility was high. After an initial slide, the market soon
bounced back and moved into the green on reports the key government
departments have drawn up a slew of proposals to populate an
ambitious reform agenda for the first 100 days of Dr Manmohan
Singh's second term as the Prime Minister of India. The market once
again slipped into the red shortly. The market bounced back with
the Sensex surging to the day's high in mid-morning trade as Asian
stocks rose. But the rally was short-lived as the market slipped in
the red once again in early afternoon trade.

Dr Singh was renominated as Congress Parliamentary Party leader on
Tuesday (19 May 2009) and is expected to stake claim today to head
the new Government of the UPA which saw BSP and SP scramble to give
it unexpected support to have 44 seats more than the required
majority. The 76-year-old economist-turned-politician is likely to
be sworn in as Prime Minster of India for the second term on Friday
22 May 2009, a day after the 18th death anniversary of Rajiv
Gandhi.

Singh may stake claim to be the Prime Minister (PM) for a second
term after meeting of the leaders of the UPA today where he is
likely to get a formal backing of the ruling Congress-led alliance.

Today's Market

Key benchmark indices surged to day's high, reversing early losses,
mirroring firm Asian indices. Volatility was high. The BSE 30-share
Sensex was up 82.73 points, or 0.68%, up 173.07 points from the
day's low. The Sensex hit its highest level in six months. The
broader based 50-shares S&P CNX Nifty index surged past the 3,700
mark for the first time in nearly six months

The market was volatile. It drifted lower in early trade amid
concern US banks are short of capital. The market cut losses later.
It moved between positive and negative zone in early afternoon
trade. The market surged in afternoon trade as Asian stocks rose.

Recovery in the Indian economy triggered a solid rally on the
domestic bourses in the past few days. The rally was also a part of
a sharp surge in global equities triggered by hopes the worst of
the global economic recession may be over. From a 3-year closing
low of 8,160.40 on 9 March 2009, the Sensex jumped 3970.68 points
or 48.65% to 12,131.08 on 5 May 2009.

Sensex goes past 12,000 Mark

Key benchmark indices settled near day's high, striking 7-month
highs, mirroring strong global cues. The barometer index BSE Sensex
gained 731.50 points, or 6.41%, outperforming its global peers.
Strong domestic and global economic data and aggressive build-up of
fresh derivatives positions in May 2009 series triggered a solid
rally on the bourses today, 4 May 2009. The barometer index BSE
Sensex surpassed the psychological 12,000 level.

Activity in Indian factories expanded for the first time in five
months in April 2009 as a swelling orders pipeline pointed to a
tentative recovery, a survey showed on Monday, 4 May 2009. The ABN
AMRO Bank purchasing managers' index (PMI) based on a survey of 500
companies, rose to 53.3 in April 2009 from 49.5 in March 2009,
climbing above the threshold of 50 that separates expansion from
contraction. The latest reading is the highest in seven months and
it has steadily risen after hitting a trough of 44.4 in December
20089.

Manufacturing makes up about 16% of India's gross domestic product.
The boost in manufacturing index came from a surge in new orders.
The new orders index rose to 54.9 in April 2009 from 49.5 in March
2009. Several research notes in the past few days have pointed to
improvement in economic activity in the months ahead.

Financial stocks led gains in European markets today, 4 May 2009,
on improved economic data in the euro-zone. Germany's DAX gained
1.80% and France's CAC 40 index rose 1.16%. The stock market in UK
was shut for a public holiday

Pre Market Report

Key benchmark indices are seen opening strong on the back of
positive Asian indices. The SGX Nifty futures for April 2009 expiry
surged 52.50 points in Singapore. However volatility may hit roof
with derivatives contracts for April 2009 series expiring today, 29
April 2009.

Aggregate results of 475 firms showed 3.6% fall in net profit on
4.5% rise in sales in Q4 March 2009 over Q4 March 2008.

Expiry of derivatives contracts today, 29 April 2009 may heighten
volatility on the bourses. As per reports, rollover of Nifty
positions from April 2009 series to May 2009 series stood at 61%
while those of stock futures were 54%, as on Tuesday, 28 April
2009.

Political uncertainty, with polling for India's 15th Lok Sabha
underway, may also prop volatility. The month-long parliamentary
elections that began on 16 April 2009 will conclude on 13 May 2009
with results due on 16 May 2009. Poll estimates point to a
fractured mandate.

Meanwhile, turnover on the bourses may take a hit with traders
refraining to take freh positions ahead of a long weekend. The
stock market will remain shut on Thursday, 30 April 2009 as voting
takes place in Mumbai for the parliamentary elections and also on
Friday, 1 May 2009 on account of Maharashtra Day.

Today Market Report

BSE 30-share Sensex was almost unchanged at 11,330.58, off close to
50 points from the day's high and up close to 150 points from the
day's low.

Banking stocks extended gains as bond prices rose. Index
heavyweight Reliance Industries recovered. IT stocks remained weak
even as cement stocks gained.

After a weak opening caused by weakness in Asian stocks, Indian
stocks had bounced back shortly.

The expiry of the near-month derivatives contracts has been
advanced to 20 April 2009 from 30 April 2009 as the stock market
remains closed on 30 April 2009 on account of voting for the
parliamentary elections in Mumbai on 30 April 2009. Rollover of
Nifty positions from April 2009 series to May 2009 series stood at
38% while those of stock futures were 26%, as on Friday, 24 April
2009.

Political uncertainty may lead to volatile swings on the bourses in
the next few weeks with polling underway for India's 15th Lok
Sabha. The month-long parliamentary elections that began on 16
April 2009 will conclude on 13 May 2009 with results due on 16 May
2009. Poll estimates point to a fractured mandate.

Asian stocks slipped on Monday as the outbreak of swine flu in
North America hurt shares of airlines and transport companies. Key
benchmark indices in China, Hong Kong, Taiwan, South Korea, and
Singapore fell by between 0.62% and 2.99%. But Japan's Nikkei rose
0.02%.

Trading in US index futures showed the Dow could fall 119 points at
the opening bell on Monday, 27 April 2009.

Target Achieved of the Stocks Recommended

• Target of all the recommended stock posted on 27th Feb
• Check out the previous post of apnapaisa.blogspot.com here
• http://apnapaisa.blogspot.com/2009/02/stocks-for-next-week-indiabulls.html
• The target achieved are more than the expected.
• Happy Investing

For latest stock tips of NSE and BSE keep visiting apnapaisa.blogspot.com

Dividends Updates

• Reliance Industrial Infrastructure Ltd recommended a Dividend of
  Rs 3.50 per Equity Share of Rs 10/- each on the Paid-up Capital of Rs 15.10 crores.
• Bank of Rajasthan Ltd recommend the dividend on equity shares for the financial year 2008-2009 in the meeting to be held on May 09, 2009.
• Tata Sponge Iron Ltd has recommended a dividend of 80% (i.e. Rs 8 per equity share) for the year ended March 31, 2009. The cash outflow on account of dividend will be Rs 1,232 lakh and for tax on distributed profit including Education Cess will be Rs 209.38 lakh.
• Can Fin Homes Ltd has a dividend at 20% for the financial year 2008-09, to be declared at the 22nd Annual General Meeting of the company convened to be held on or before September 30, 2009.
• GTL Ltd has Recommended a Dividend @ 30% (Rupees 3.00 only per share) on the Equity Share Capital of the Company for the financial year ended March 31, 2009.

For Regular Dividend update on the listed companies on the Indian Stock Exchage of BSE and NSE keep visiting the website apnapaisa.blogspot.com

RBI CUTS KEY RATES

The RBI today cut its key short-term rates by 25 basis points each
to shore up faltering growth in the face of the global economic
slowdown. The repo rate, at which the Reserve Bank of India (RBI)
infuses cash into the banking system, will be cut to 4.75%, and the
reverse repo rate, at which it absorbs excess cash from banks, will
be reduced to 3.25%, effective immediately.

The Reserve Bank also repeated a call for banks to pass on its rate
cuts to customers and said deposit rates should also fall. "There
is scope for the overall interest rate structure to move down
within the policy rate easing already effected by the Reserve
bank," it said, adding its latest rate cut reinforced the case.

The central bank cut is growth estimate for the year ended March
2009 (FY 2009) to 6.5% to 6.7%, from 7% projected earlier. It has
forecast growth of around 6% for the year ending March 2010 (FY
2010).

Market UP in Green Today

Realty, banking and metal sector led a solid surge on the bourses
in mid-morning trade. All the sectoral indices on the BSE were in
green. Mid- and small-cap shares surged after a sharp correction on
Thursday, 16 April 2009.

Investor sentiment was strong also because foreign funds were net
buyers in Thursday's trade despite a near 3% fall in the barometer
index BSE Sensex on that day. As per the provisional data released
by the stock exchange, foreign funds bought shares worth a net Rs
479.09 crore on Thursday. FIIs have made heavy buying in the past
few weeks after heavy sales in the first two months of calendar
2009. There was a huge outflow of Rs 1124.24 crore by domestic
institutional investors (DIIs) on Thursday.

Asian shares were mostly higher on Thursday led by technology
stocks after their US peers gained on hopes for better demand and
some stability in the economy there. Key benchmark indices in Hong
Kong, Indonesia, and Singapore were up by 0.08% to 1.49%. But key
indices in South Korea and Taiwan were down 0.58% to 4.03%.

Japan's Nikkei 225 was up 1.49% after consumer confidence in Japan
climbed in March 2009

China's Shanghai Composite was up 0.08% after Chinese industrial
production expanded by 8.3% in March 2009 from a year earlier, up
from 3.8% in the first two months. The data was released by the
statistics bureau yesterday, 16 April 2009, in Beijing.

Trading in US index futures showed the Dow could fall 38 points at



the opening bell on Friday.

TCS Enters IPL
For More Tips and Investment options keep visiting Apnapaisa.blogspot.com regularly

SENSEX CROSSES 10,000 AGAIN

Fall in headline inflation to a record low and short covering in the derivatives segment ahead of the expiry of the near-month March 2009 contracts lifted the barometer index BSE Sensex above the psychological 10,000 mark in mid-afternoon trade. The Sensex had last had hit the 10,000 mark on 7 January 2009, the day Satyam Computer unveiled India's biggest corporate fraud and triggered a market slide. The S&P CNX Nifty breached the psychological 3,000 mark.

Sterlite buying of Arsco
(Source : hindubusinessline)

Start Picking Banking Stocks
IN today market session bankex hit the one yr low and most of the banking stocks also hit 52 yr low be it be ICICI or AXIS or IOB or SBI they are below their October low also.
With interest coming down and general election dates already announced there is high chance that these banking stocks will start to become the flavour of the season in coming days hence why not be wise and buy them when they are available at fairly cheap price.

Following banking stocks should be in ones radar :

• ICICI Bank (270)
• Axis (295)
• IOB (40)
• HDFC Bank (800)
• PNB (305)
• Bank of Rajasthan
• City Union Bank

Sensex at 3-year closing low

A surprise cut in policy rates by the Reserve Bank of India (RBI) failed to lift spirits on the bourses with the Sensex tumbling to 3-year closing low. Sustained selling by foreign funds, weak rupee and weak European markets weighed on the sentiment. Bond prices gave up initial gains which also weighed on equities. The BSE 30-share Sensex was down 248.57 points, or 2.94%, off close to 340 points from the day's high.
Index heavyweight Reliance Industries (RIL) led the decline. FMCG, banking and capital goods stocks also declined.
After opening on a positive note on higher Asian stocks and the Reserve Bank of India's latest effort to boost liquidity, the market soon slipped into red as sustained selling by foreign funds and a weak rupee weighed on the sentiment. A sharp slide was witnessed in morning trade as some Asian markets came off the day's peak as there was no announcement of an additional stimulus package by China which the investors were expecting.
The market extended losses in early afternoon trade. It came off the day's low in afternoon trade. The market tanked to the fresh day's low in mid-afternoon trade as European shares dropped in early trade. A bout of volatility was witnessed in the last 40 minutes of trade as day trades squared positions. (Source : Capitalmarket)

Cut in Repo and Rerverse Repo Rates

Sending a strong signal to banks to lower lending rates, the Reserve Bank of India on Wednesday cut repo and reverse repo rates by half a percentage point each with immediate effect. Though market has been speculating a rate cut, the mid-week announcement took bankers and marketmen by surprise.
With the latest cut, the repo, the rate at which the RBI lends short-term funds to banks, now stands at 5 per cent and the reverse repo, the rate at which the RBI borrows from banks, at 3.5 per cent.
Banks are expected to cut both lending and deposit rates. Though the central bank had cut its key rates earlier in January, some banks, particularly those in the private sector, were reluctant to reduce their lending rates. This is the second rate cut by the RBI this calendar year.
With inflation rate falling to 3.36 per cent for the week ended February 14, 2009 and GDP growth falling to 5.3 per cent for the third quarter, it was widely expected that the RBI would cut rates
Bankers, however, said reduction in lending rates will depend on their cost of funds.
Mr V. Santhana Raman, Executive Director, Bank of Baroda, said, “With the rate cuts now, the cost of funds could become cheaper and liquidity ample. Even if banks don’t cut rates immediately, in a few days time, they will have to revisit their lending rates. We will evaluate the situation and take a decision shortly.” In the Third Quarter Review of the Monetary Policy, announced in January, the RBI had left key rates unchanged, but had indicated that banks must cut lending and borrowing rates.
The same concern is reflected in today’s announcement. “It is expected that the reduction in the policy interest rates will further encourage banks to provide credit for productive purposes at viable interest rates. The Reserve Bank, on its part, would continue to maintain ample liquidity in the system,” said the RBI.
It has also cautioned banks to monitor their assets and take timely action to prevent defaults.
The average PLR for most public sector banks is now 12.5 per cent.
According to Mr Keki Mistry, Managing Director, HDFC, the RBI move is aimed at creating confidence among banks so that they can lend further.
Asked if HDFC is likely to cut rates, Mr Mistry said, “The cut in the rates will have no direct impact on our cost of funds. When interest rates in the system go down, and our cost of funds comes down, we will pass them on to our customers.”
(Source : Businessline)

Stocks for next week

1. Indiabulls ... cmp 96 target 115
2. HDFC........... cmp 1274 target 1400
3. RIL............... cmp 1266 targer 1400
4. IBSEC...........cmp 22.65 targert 24
5. Nandan Exim..cmp 0.95 target 1.1o

Special Package for Export Sector

A special package of Rs 325 crore for the employment-intensive leather and textiles export sector, fast settlement of duty credit scrips for duty paid in export production and extension of such scrips for import of even restricted items after payment of duty are the key features of the trade facilitation measures the UPA Government unveiled on Thursday.

The procedural simplifications would help prune high transaction costs to trade and industry.

Announcing the final stimulus to the slowdown-hit export sector, the Union Commerce and Industry Minister, Mr Kamal Nath, said the special package for the twin sectors would be given for exports to be undertaken from April 1.

The threshold slab for premier trading houses has been reduced to Rs 7,500 crore from the current Rs 10,000 crore. The Director General of Foreign Trade, Mr R.S. Gujral, clarified later that this would help seven to 10 companies by way of relief to boost their exports. He said under the DEPB/duty credit scrip, import of restricted items such as HR coil could be done after payment of duty.

Under the Export Promotion Capital Goods (EPCG) scheme, the obligation for all exporters where the decline of the export of the products was by more than 5 per cent, would be reduced proportionately. This has been done for 2009-10 for exports executed during 2008-09, while the export obligation period against advance authorisations has been extended up to 36 months from the current 24 months.

Electronic message and transfer facilities for advance authorisation and EPCG schemes would be available for shipments from Electronic Data Interchange (EDI) ports from April 1.

For import of precious metals, STCL, Diamond India, MSTC and Gem and Jewellery Export Promotion Council and Star Trading House (only for gem and jewellery sector) have been added to the list of designated agencies. Import restrictions on worked corals have been abolished. Authorised persons of gems and jewellery units in Export-Oriented Units would be allowed personal carriage of gold in primary form up to 10 kg in a financial year, subject to RBI and customs guidelines.

To boost agricultural and rural exports, a re-credit of 4 per cent special additional duty, in case of payment of duty by incentive scheme scrips such as Vishesh Krishi and Gram Udyog Yojana, Focus Product Scheme and Focus Market Scheme would now be allowed.

The Minister said Bhilwara for textiles and Surat for diamonds have been recognised as towns under export excellence so that all the benefits for such clusters of export activity would accrue to them. For advance licence issued prior to April 1, 2002 the requirements of modvat/cenvat certifications would be dispensed with in case of customs notification prescribed for payment of countervailing duty.

While the procedural formalities for claiming duty drawback refund and refund of terminal excise duty for deemed exports have been further simplified, Mr Kamal Nath said that reimbursement of additional excise duty levied on fuel would also be admissible for EOUs. (source : businessline )

Satyam Case to be handed to CBI

The investigation into the Rs 7,136-crore financial fraud at Satyam Computer Services was today handed over to the Central Bureau of Investigation (CBI). The CBI has come into the picture 40 days after the former Chairman, Mr B. Ramalinga Raju, made disclosures about fudging the numbers. The central agency will probe the scam from different angles and has powers to have special courts to examine the accused. The other agencies – SEBI, SFIO, Income-Tax Department – will continue with their line of investigation. The Andhra Pradesh Government has issued the necessary order facilitating CBI probe, the State Home Minister, Mr K. Jana Reddy, told newspersons here on Monday. The CB-CID of Andhra Pradesh Police has been investigating the fraud so far

F&O Tips for the day

1. Buy NIFTY Put Option Strike Price 2700 expring 26th Feb @ 37 and sell around 60
2. Buy WWIL Stock Option strike price 15 expiring 26th Feb @ 1.50 and target of 3

Pledging of Shares by TATA Group

Tata group firms Tata Teleservices (Maharashtra) Ltd, Tata Power Ltd and Tata Steel Ltd were among companies which disclosed on Monday that their founders had pledged shares to raise money, even as it became clear that at least some of the lenders have securitized the debt.

That would mean the shares may be sold in the market if the promoters default on payments or offer more shares as collateral, or so-called margin, to make up for the sharp fall in share prices.

Tata Teleservices (Maharashtra) revealed that its promoters had pledged 942.8 million shares, or 49.7% of its equity. The shares were worth Rs2,173.9 crore at Monday’s closing price on the Bombay Stock Exchange. Tata Steel said its founders had pledged 96.4 million shares, or 13.19% of the equity. The shares were worth Rs1,922.93 crore at Monday’s closing price. And Tata Power disclosed that its promoter Tata Sons Ltd, the holding company of the Tata group, had pledged 32.3 million shares, or 14.59% of the total equity. This was worth Rs2,173.23 crore at Monday’s prices. Several Tata firms have taken on debt to pay for overseas acquisitions.

The three Tata firms are among at least 100, many of them small and mid-sized, that have thus far declared that their founders or promoters have pledged their shares.

The disclosures are in line with a recent instruction from regulator Securities and Exchange Board of India (Sebi). Firms were continuing to make the disclosure till late Monday. At last count, the value of the pledged shares was Rs10,367.74 crore.

Typically, all such loans are given against collateral and, in a falling market, promoters need to pledge more shares to keep this intact.

In one such case, a mutual fund participating in a securitization programme sold part of the promoter’s stake in a large Indian drug maker in the open market, pulling down the stock significantly, an investment banker, who did not want to be identified, said. The promoter had originally taken loans from two lenders, pledging shares. The lenders, in turn, securitized the debt.

According to at least six investment bankers and mutual fund managers, none of whom wanted to be identified given the sensitive and confidential nature of such transactions, a few banks have securitized loans against shares through debentures and so-called pass through certificates (PTCs). Mutual funds cannot lend but can invest in debentures or PTCs, which are nothing but fixed-income securities.

“Typically banks do this (securitization) through creation of a special purpose vehicle and in case of a default, the shares can be sold,” said the CEO of a Mumbai-based mutual fund who did not want to be identified. Unlike lenders, who often have a long-term business relationship with the promoters, mutual funds can immediately sell the shares in case of a default.

Banks are also syndicating such loans to promoters. In a loan syndication, one bank issues the loan against shares in the first stage. In the second stage, it sells part of its exposure to other banks. Banks securitize and syndicate loans to free up their capital.

Under banking norms, for every Rs100 worth of loans, banks need Rs9 of capital. So, when the amount of loan that a bank takes on its own book goes down, the capital requirement too comes down.

Apart from Tata Steel and Tata Power, the only constituent of the National Stock Exchange’s 50-stock Nifty index to have revealed till late Monday that its promoters had pledged shares was Dr Reddy’s Laboratories Ltd. Promoters of the Hyderabad-based drug firm have pledged 6.9% of their shares. At Monday’s closing price, the value of this stake is Rs481 crore.

“Promoters of large firms, including one of India’s biggest conglomerates, have actively pledged shares but they may not make public announcements immediately,” said a senior executive at large foreign brokerage, a little before the Tata firms made their disclosure.

In a circular last week, Sebi made it mandatory for companies to disclose details of shares that had been pledged by promoters.

Sensecx Jumps 283

The benchmark stock indices gained close to three per cent on Monday following higher domestic GDP growth of 7.1 per cent forecast for the current fiscal. The Sensex closed 283 points up at 9,584 while the Nifty closed 77 points higher at 2,919.

“The revised GDP growth rate and the optimism in the overseas markets about the Obama package led to short covering of positions here by the financial institutions,” said Mr Amitabh Chakraborty, President (Equity), Religare Securities.

Expectations of concessions in the vote-on-account later this month also boosted sentiment. Reliance Industries gained more than 3 per cent, on expectations of tax concessions for the gas production from the KG basin.

FIIs were net buyers of equities for Rs 285 crore, and domestic institutional investors net sellers for Rs 46 crore.

The metal index gained the most – 4.41 per cent on expectations of a recovery in the Chinese economy.

EDSERV SOFTSYSTEMS LIMITED IPO
Symbol - Series
EDSERV EQ
Issue Period
Feb 05, 2009 to Feb 09, 2009
Issue Size
39,73,908 EQUITY SHARES
Issue Type
100% Book Building
Face Value
Rs. 10/-
Price Range
Rs. 55 To Rs. 60
Tick Size
Re. 1/-
Market Lot
100 Equity Shares
Minimum Order Quantity
100 Equity Shares
Maximum Subscription Amount for Retail Investor
Rs.100000
IPO Market Timings
10.00 a.m. to 5.00 p.m.
Book Running Lead Manager
Keynote Corporate Services Limited
Co Book Running Lead Manager
Ashika Capital Limited
Syndicate Member
Keynote Capitals Limited, Ashika Stock Broking Limited
Categories
FI, IC, VC, MF, FII, FVCI, SIDC, PF, PEF, MLA, BDFI, NIF, BC, IND, HUF, NRI ,EMP and OTH
No. of Cities with Bidding Centers
42
Name of the registrar
Karvy Computershare Private Limited
Address of the registrar
Karvy House,46, Avenue 4, Street No.1,Banjara Hills, Hyderabad - 500 034.
Contact person name number and Email id
Mr. M. Murali krishna, Tel: 91-040- 23312454,Fax: :91-040 -23311968,E-mail: edserv.ipo@karvy.com.

LIC hikes stake in banks

Banking stocks were a favoured investment option for insurance companies, especially Life Insurance Corporation of India, during the December quarter.

LIC’s stake in PSU and private banks moved up by one to four per cent during the last quarter, as the State-owned insurance company reduced stake in several other sectors, a study of BSE data showed.

Its stake in some PSU banks rose by between two and four per cent. The banks were Allahabad Bank (up 4.60 per cent), Oriental Bank of Commerce (2.60 per cent), Syndicate Bank (2.32 per cent) and Union Bank of India (2.18 per cent).

In some PSU banks, LIC’s stake rose by between one per cent and two per cent. These institutions were Bank of India (1.63 per cent), Indian Overseas Bank (1.59 per cent), Bank of Baroda (1.53 per cent), SBI (1.33 per cent), Canara Bank (1.21 per cent) and Punjab National Bank (0.38 per cent).

Some of these banks saw LIC’s stake exceed two digits. The insurance company’s holding rose to 16.02 per cent in Oriental Bank of Commerce and to 10.99 per cent in Allahabad Bank.

LIC’s investment in Corporation Bank, the bank in which LIC holds the most, remained unchanged at 26.32 per cent during the period.

The insurer’s stake went up in private sector banks also. In HDFC Bank, the holding rose by 0.37 per cent to 5.07 per cent and in ICICI Bank, it went up by 0.35 per cent to 8.80 per cent.

Private sector insurance companies, too, have shown interest in banking stocks.

ICICI Prudential Life Insurance Company has raised its stake in Bank of India (1.61 per cent), SBI (from less than a per cent to 1.54 per cent), HDFC Bank (0.15 per cent) and Axis Bank (0.14 per cent). However, it reduced holding in Punjab National Bank by 0.65 per cent.

Reliance Life Insurance raised its stake in Dena Bank by 1.08 per cent.

LIC also raised stake in Sensex power stocks Reliance Infrastructure and Tata Power, by more than one per cent in each. In the same quarter it reduced stake by between one and three per cent in some blue-chips in FMCG, automobile, metals and pharmaceuticals.

LIC has reduced stake by 2.43 per cent in Hindalco to 8.80 per cent, and pruned holdings in Hindustan Unilever and ITC by less than one per cent each, to 5.89 per cent and 13.98 per cent, respectively. In Ranbaxy, too, LIC reduced stake by 0.79 per cent to 7.28 per cent.

LIC’s holds more than 10 per cent in 10 companies on the Sensex. Some time ago, the IRDA had indicated that LIC reduce stakes in listedfirms to less than 10 per cent.

The insurer holds more than 10 per cent stake in M&M (17.61 per cent), ACC (17.48 per cent), L&T (17.38 per cent), Maruti (14.36 per cent), Reliance Infra (12.99 per cent), Tata Motors (10.27 per cent), Tata Power (11.44 per cent) and Tata Steel (11.56).

( source : Hindubusinessline )

Hence for a medium to long term view to have excellent return one can really take huge positions in banking stocks especially banking stocks as.

• Bank of India
• IOB
• Union Bank
• Bank of Rajasthan
• City Union Bank
• Axis Bank
  

Highest bid may be benchmark for Satyam open offer price

3 The highest quote in any competitive bid for Satyam Computer could be used as a benchmark for determining the open offer price for the company. It is reliably learnt that this is one of the possibilities being considered by SEBI, which is revising its takeover regulations to accommodate abnormal cases such as Satyam.

This methodology is being seen as a safe and transparent solution to arriving at an open offer price, said sources.

The Government-appointed Satyam Board had sought exemptions from the takeover code, as the six-month average market price for an open offer under the current regulations would deter suitors from bidding for that company. Satyam prices have plunged since promoter Mr Ramalinga Raju’s admission in early January of a fraud in the company.

On Monday, the SEBI Chairman, Mr C.B. Bhave, said the regulator saw merit in the argument that the Satyam’s market price until January may not make for a credible benchmark, being based on the company’s financials that have been disowned by the auditors themselves.

The counter argument this set off among legal experts was that the current market price itself is equally rootless, since everyone is still in the dark about Satyam numbers, which need restatement.

Using the highest competitive bid price to arrive at the open offer price frees the entire process from taking into account the market price.

Some market experts feel the entire exercise only serves to pave the way for easy acquisition of Satyam by other corporate hawks. “If the pre-January Satyam price was higher than it should have been, assuming it was based on false financials, then post the scandal the loss of credibility has certainly brought the price lower than it should have been,” said a broker. “The idea of a six-month average is exactly that, to iron out the volatility in the stock price.”

Many companies, including Larsen & Toubro and the Spice Group, have shown interest in acquiring Satyam. L&T, which acquired a 4 per cent stake in Satyam in December, raised its stake to 12 per cent a week ago.

(source : hindubusineesline)

*Interesting BSE Sensex figures*

· As at January 8 2009, the BSE Sensex closed at 9071, a far cry from 20873
on January 8, 2008.

· Now, even if it took 5 years (Jan 2014) for the Sensex to reach
its previous high, the return would be *18.14% (CAGR) *.

· If it took *7 years (Jan 2016) *, it would be *12.64% *.

· And even if the Sensex reached that figure in *Jan 2019 (10
years) *, the returns would be *8.69% *.

· The surprise is that even for a *15 year time frame (January 2024)
* the Sensex would generate a CAGR of *5.71% *.

*Not bad at all when you consider that the 10 year Government Security
yields 5.65% (as on January 21, 2009 ) and that the long term
capital gains tax on equities is presently NIL

Where is Satyam headed ???

The most hot stock in the market today everybody knows is Satyam Computers which hit all time low recently of 10 and now trading around 45.

With every news and views the stock takes jump either ways so right now the question is where is it heading in coming days can one get benefit by taking position in the stock currently and my answer is yes even if you buy it today you will make huge gains in the days to come.

The board members and directors are already formed and now hunt for the ceo has begun and with every passing day one is hearing better news from the newly formed board of Satyam computers, hence that days is not far away when we see the stock again crossing 100.

Bank of India -- Buy

Fresh investments can be considered in Bank of India stock as it has continued to deliver better-than-expected earnings growth on a consistent basis.

Its superior return ratios (Return on Assets of 1.52 per cent and Return on Equity of 30.1 per cent), efficient operations due to controlled costs, diversified-high quality loan book and sustainable growth in its core operating revenues are the key positives for the bank. At current market price of Rs 230, the stock is trading at 4.1 times its trailing one year earnings and 1.1 times its December 2008 book value. Though profit growth may moderate from current levels, it is likely to remain well above peers in PSU space.

In the nine months ended December 2008, Bank of India posted a 75 per cent profit growth. The bank’s global advances have grown at 31 per cent while global deposits grew at 26 per cent year-on-year. Advances growth was driven by growth in corporate advances (72 per cent), even as retail credit stayed almost flat. The bank has a high credit-deposit ratio which boosted growth in net interest income to 40 per cent.

Net Interest Margin for first 9 months improved to 3.14 per cent from 2.97 per cent, due to a higher yield on advances. Going forward, as the bank trims lending rates, margins may moderate from this level. However, the fall may be contained as recent relaxations in CRR, SLR and repo rates bring down the cost of deposits.

On the cost side, employee expenses and provisions have risen as the AS-15 transition liability carries higher costs due to a fall in discount rates. But complete rollout of the Core Banking Solution, may help offset this over the next year.

While treasury gains aided profits this quarter, mark-to-market provision on overseas credit linked notes, higher taxes and provision for NPAs partially offset this. If not for these provisions, net profit would have grown at a higher rate. Asset quality, a key concern surrounding bank stocks, improved year-on-year, but showed slippage sequentially. The net NPA/advances for the bank has increased from 0.48 per cent to 0.52 per cent, but remains at manageable levels. The loan book is divided into Corporate (48 per cent), SME (21 per cent), retail (17 per cent), Agriculture (14 per cent).

Going forward, apart from its diversified loan book and focus on corporate advances, a high provision cover of 77 per cent will also shield asset quality.

The concerns over the service tax on deposit insurance premium appear to be overdone as the bank may take a hit of around 6 per cent of current quarter profit in worst case scenario (assuming all its deposits are below Rs 1 lakh).

( source -- hindubusinessline )

Metal Index Jumps

Metal stocks witnessed a sharp rise on Monday with BSE Metal index gaining maximum among all the sectoral indices on the back of the second stimulus package announced by the Government.

The BSE Metal index gained 5.54 per cent. Top gainers among the steel stocks were Tata Steel (6.73 per cent), SAIL (6.97 per cent), Jindal Steel (5.50 per cent).

Meanwhile, according to a report, there was a sudden rise in demand for long structural products by 30 to 40 per cent while the prices have come down from an average of Rs 48,000-49,000 a tonne in August to Rs 32,000-33,000 a tonne. The good news for steel manufacturers is that the production cost of steel has also come down with fall in prices of raw material, including iron ore, which has also been favourable for steel stocks.