Sothern Online Biotech -Allotment

Click here to check Allotment Status

Finally, the allotments have come. The listing strategy should be to sell on the listing day.The stock is expected to list in the band of Rs.14-18 on BSE which should be a decent gain for the investors on the issue price.

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Bears take Bulls by horn, Sensex down 80 Pts.

Markets witness huge volatility in intraday trade

The last hour of the trading today proved that bears were in strong hands. The sensex which opened on a positive note and went on to a high of 100 points in the intra day from its previous close finally slipped to the red and closed down 80 pts.

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The market breadth turned weak in the latter part of the trading session. 1,621 stocks declined on BSE as compared to 773 stocks that rose. 42 scrips were unchanged. Losers outpaced gainers by a ratio of 2:1.

Ranbaxy emerged as Top loser and the scrip closed at Rs.412 with volumes of around 7 Lac shares. Other pharma scrips followed suit.

In metals , TISCO lost 5% to close at Rs.346. Same was the case with tech stocks. Stalwarts like Reliance and Gujarat Ambuja closed with losses.

Outlook for Wednesday
Tuesday's fall is significant with the perspective of the market sentiments. With markets rising in the morning, investors were expecting a sort of turnaround for the stocks. However, that proved to be elusive in the last hour of the trade.

The market breadth has turned quite negative. The only solace is that the volumes were not so high as compared to Monday.
However, alot depends on how the markets move on Wednesday. The outlook for wednesday is weak and the selling is expected to continue. Investors are advised to stay cautious.
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Sensex melts on selling spree; down 289 pts.

FII's play spoilsports, mutual funds save the day
The Indian Stock markets witnessed a selling spree this week resulting in the Sensex melting by 289 points. Heavy selling was seen from FII's who chosed to book pofits in the month of October to inflate their books and bank on good bonuses for the year-end party.
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What has changed for the markets ?
Few new scenarios have come into picture. First and foremost is the talk about reallocation of FII funds to the emerging markets in the month of January. The street is aloud with the news that FII may reduce their allocation in the Indian markets and move some money to other markets such as Japan.
However, from the fundamental perspective, nothing has changed in the Indian story. The Q2 earning season started on a good note with Infosys increasing its guidance and outperforming the street expectations. However, the judgement in Lipitor case went against Ranbaxy and bought doom to the pharma scrips.

Mutual Funds: What are they doing ?

Mutual funds remained net buyers and helped the sensex to save itself from further meltdown. The reason being that some of the mutual funds have garnered huge subscription from their recent offerings and they have to invest the same in the Indian equities. Mutual funds are using these dips to enter at better levels.

Who are worst effected?
Those investors who have invested in equity markets in last two months are the worst effected from this meltdown. However those who are invested since last 6 months are quite better off though they too had dint in their profits

Has the long term outlook on India Changed ?
Absolutely not. Though the markets may see some more downfall before moving up, the long term scenario of strong bullish sentiment still remain intact.

Advice to small Investors
Investment Guru advice the investors not to panic under these situations. This is an outcome of the liquidity movements and hence will not impact the long term investors. When the FII's do the reallocation in Janaury, Indian markets will again see huge buying from them.
Investors are advised to have a long term outlook while buying stocks. Those who are sitting in cash are advised to use such dips to slowly start buying in stocks which have good fundamentals but are battered by this meltdown.
Investment Guru blog will continue to guide you in your journey to Investing.

Happy Investing !
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IPO Update: Paradyne Infotech

Apply for listing Gains

Paradyne infotech has entered the capital markets with a offer of 33 Lakh shares at a fixed price of Rs. 42 per share.

The object of the public offer is to expand the existing operations, product upgrades and setting up data and support center.

Paradyne is an existing profit making, dividend paying Company engaged in the business of computer software, system integration and managed services. The system integration stream contributes around 70% to the topline.
For FY05, the company posted net profit of Rs.5 crores on a turnover of Rs.69 Crores.
The EPS of the company for FY05 stood at Rs. 6.60 which translates into P/E of 6.36 at the offer price of Rs. 42

Investment Guru is of the opinion that in view of the bullish market sentiments and strong IPO listing patterns, one can consider investing in the IPO with a view to encash the listing gains.
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