Bulls on the Rampage, Reliance Rules, IPO magic continues

Sensex Strikes life time high of 16616, up 2555 pts. in just 23 days
Looks like India is going through a very good phase. On one hand our cricketers are showering fours and sixes and delivering amazing performance at the world cup, on the other hand the stock markets are flaring up with sensex hitting all time high of 16616 with superstars like Reliance hitting every ball for a six !!! whatever, the game has taken an intresting turn, be it cricket or the sensex. So what's next ? Will our cricketers win over the australians ? will sensex post a new high on monday ?

We should all thank Mr. bernanke , the US Fed chief for a 50 basis point rate cut which brought cheers to markets across the globe. Markets are now expecting RBI to announce a rate cut ! Fed's decision is being seen as a helping hand to the ongoing subprime crisis. On the Indian markets, this would ensure flow of funds to indian markets and hence liquidity would continue to be a driving factor for the markets.

Reliance stocks in the thick of action
The person who been benefitted most from the upturn in the stock market is undoubtedly the Ambani brothers and of course the Reliance Shareholders. Share of all reliance group companies posted impressive gains.

I remember giving the Investment idea on Reliance Industry @978 in May last year (See the post Here) with a One year target of 1800 and since then the stock has lived up to the expectation of the investors. I would recommend invetsors to keep a hold on the stock as it unfolds it journey to new horizons. Reliance has recently announced its foray in highly lucrative shipbuilding and dredging sector.The company has anoounced oil finds in D4 block in Krishna Godavari basin. Company Infrastructure arm Reliance Industrial Infrastructure has been in the limelight for last few session and has moved to 1043 backed by continous buying support.

Reliance group stocks were in continous demand in the market. Reliance Natural Resources surged 35% to end at Rs. 76. It has applied for a license to undertake city gas distribution business in Delhi, Mumbai, Gurgaon and Noida. Reliance petroleum was up 11 % on huge demand. Punters are putting a target of Rs. 200 on the stock within 6 Months.

Kuotons and CCCL gets huge subscription

Both the IPO's were considered to be aggressively priced and see the subcription numbers ! Kuotons was subscribed 45 times while CCCL was subscribed whooping 81 times. This shows the craze to earn listing gains among the investors and why not , if a stock like Magnum Ventures can give 85% return on lsiting day, Kuotons and CCCL will follow suit and going by the trails they may also have a blasting debut on the bourses. As per unconfirmed sources, Kuotons is commanding a premium of Rs. 100 in the Grey market and CCCL is commanding a premium of Rs. 250 The figures may go further up after the news of oversubscription. Another IPO on the block is Supreme Infrastructure. An update on this IPO will be posted shortly on the blog.

1 comments:

John said...

Rajesh,
Though I am not a big fan of Reliance, I must admit that the stock has rewarded the invetsors very well. I would like to know your views on TCS. Is it a promising stock from long term perspective ?

John