Arvind - Buy on declines and Add to Portfolio

Company Back Ground

Arvind Limited is an India-based textile company. The Company operates in three segments: Textiles segment, which includes products, such as, fabric, yarn and garments; Brands and Retail segment, includes branded garments and apparels, and Others segment includes electronic private automatic branch exchange (EPABX) Systems (Electronics), construction and project activity.

The Company operates in divisions, such as denim, woven fabrics, knits fabrics, garment exports, advanced materials, Arvind Brands, Mega Mart retail, The Arvind Store, engineering, telecom, and real estate. The Company’s weaving capabilities include Airjet looms and Rapier looms. Its finishing capabilities include continuous bleaching and dying ranges, caustic mercerization, and machinery for various chemical and mechanical finishes.

The brands sold in MegaMart include RUGGERS - SKINN - ELITUS - DONUTS - KARIGARI - MEA CASA - AUBURN HILL - BAY ISLAND - COLT - LEISHA- EDGE.   Arvind has sealed a deal to purchase a 49% interest in Calvin Klein India, the finalized deal will help Arvind strengthen this partnership. The transaction will also help propel Arvind into international growth through deals with overseas brands, the report stated.

Despite the fallout of recession, Arvind`s brands business grew by 25% in the last ninemonth period to Rs 1,412 crore. The company`s profit before tax and interest from brands business grew by 17% to Rs 34.7 crore in the last nine months. The company`s brands include Excalibur, Flying Machine, Colt and Newport. In addition to this, it owns the right to market brands such as Polo, Arrow, Cherokee, Next, Club America and Megamart. The premium end of the apparel market has been growing at a rapid 16-18% as aspirational customers are looking to buy better brands

Market Performance :

The stock has been on an uptrend, and has gained as much as 75% out performing both Sensex, and Nifty returns during the same period. In the last 3 months the stock has moved sharply and had high and low Rs.159 and Rs.124 giving returns in excess of 20%

Investment Strategy :

The company is likely to post robust results for the Q4 of current year making it an attractive buy around Rs.137 to Rs.140.  Depending on investment horizon we could expect decent 20% return in next few months, while long term portfolio should continue to hold to stock for a target price of Rs.200/- and keep adding on declines.

Raghav
Equity Research Analyst

Smart Investor
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Sail - Avoid for 2011

Company: SAIL

Broking House: Angel Rating: Accumulate

Price Target: `182

SAIL reported a second quarter net profit of `1,107 crore — below forecasts. A negative surprise during the quarter was the fall in the realization per tonne of steel, Angel says. SAIL’s management has indicated that the fall was a one time item — because of liquidation of some defective inventory. Compared to the last year, operating margins were lower as raw material costs have increased substantially.

At its current price, SAIL’s stock is trading at 8.6 times the estimated FY11 earnings. Going ahead, Angel Broking sees the firm benefitting from strong domestic demand. Based on these factors, it has kept an ‘accumulate’ rating on the stock, but has cut the price target from the earlier level of `198

Our Recommendation :

Avoid this stock for this year 2011. With the FPO the floating stock increasing there are more investors likely to book profits at every rise ! Utilize steep corrections to buy the share for long term and build a portfolio with a view to hold the stock for 3-5 years horizon for a decent profit.

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Coal India Buy

Company: Coal India

Broking House: Motilal Oswal Rating: Buy

Price Target: `325

Coal India’s production is expected to be hit by environment protection norms — by 16 million tonnes in FY11 and 39 million tonnes in FY12. Meanwhile, it is also expected to increase sales via the e-auction route, where profits are much better.

For the first half of this year, prices via e-auction have been 73 per cent higher than the general price. The management sees the e-auction volume of FY11 at around 50 million tonnes, up from 45 million tonnes for the previous year.

On the cost front, staff costs are expected to go up 10 per cent during the year. However, Motilal Oswal expects Coal India to post a 15 per cent jump in profits for FY11.

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Bank of Baroda - Buy

Company: Bank of Baroda
Broking House: Edelweiss Rating: Buy
Price Target: `951

Edelwiess recently met the top management of Bank of Baroda which reaffirmed its faith in the bank’s fundamentals. The management reiterated that it will be able to achieve 23-24 per cent growth in FY11. It also doesn’t expect margins to fall by more than 0.25 per cent from their current levels, as banks still enjoy pricing power. The past few months have seen the bank raise deposit rates as well as its base rate/PLR. On the whole, this action should help preseve margins. The bank’s asset quality is also strong. For instance, the exposure to the microfinance sector is just Rs 160 crore, and is primarily in West Bengal. Based on these factors, Edelweiss has rated the stock a ‘buy’.

Readers are recommended to consult their financial advisers before making any investment. This newspaper is not liable for investment decisions made on the basis of recommendations in these columns

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Buy REC

REC has consistently delivered healthy core performance with strong loan growth coupled with high NIMs and improved asset quality. A strong sanction pipeline of nearly Rs 80,000 crore built over the last few years provides strong visibility on its disbursement growth outlook for the coming years. REC has also received approval from GoI for its Follow-on Public Offer (FPO).

“GoI will divest 5% of its stake and 15% fresh equity dilution which will further provide fillip to the stock. Huge demand – supply gap in power is bound to result in a continuous demand for rural electrification projects. With decades of experience and expertise, REC is in a strong position to capture this forthcoming boom,” says Kapur.

Source : et

Bajaj Auto’s August total volumes grew by 6% YoY (~10.5% MoM) to 213,072 units (v/s est 205,000), with improvement in both domestic (~6% growth) and exports (~5.7% growth). Bajaj's domestic sales were at 137,908 units, whereas exports were at 75,164 units. Bajaj Auto 1QFY10 results are above estimates, driven by higher export realizations and higher operating leverage. EBITDA margins were at 19.5% and adjusted PAT of Rs3.1b volumes improved by 24% QoQ (but 11.7% YoY decline), driven by 29% QoQ growth (~13.8% YoY decline) in 2W and 2.5% QoQ decline (~8.8% YoY growth) in 3W. Realizations improved by 14.6% YoY (flat QoQ due to product mix change) due to higher forex rate. With encouraging response for new Discover 100, the company is planning to increase sales of Discover brand (incl Discover 135) to ~80,000/month for next two months (v/s 65,000 in Aug-09). Including new Pulsar, the company expects to sell ~500,000 motorcycles cumulative over the next two months.

Buy GVK Power

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Since January 2009, there have been several positive developments that improved returns on project SPVs and addressed liquidity issues. The developments include: - 10% rise in aero revenue at Mumbai International Airport Ltd (MIAL) - The levy of ADF to mobilize Rs15.4bn over FY10-FY13 towards MIAL's development costs - Relaxations of land use (~20m square feet development) at MIAL, including commercial development - Availability of gas from the KG basin, leading to commissioning of 694MW power capacity - Raising Rs 7.2bn through a recent QIP, which provides growth capital - GVK expected to report consolidated net profit CAGR of 72% over FY09-FY11, from Rs 1.1b in FY09 to Rs 3.2bn in FY11. This will be driven largely by power, given commissioning of JP II and Gautami projects in 1QFY10

Buy - Bharti Airtel

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Bharti Airtel Ltd is India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) -- Mobile Services, Airtel Telemedia Services & Enterprise Services. For 1Q FY10, the company’s total revenue grew to Rs 99.4 bn, EBITDA grew 18% YoY and 3.8% QoQ to Rs 41.5bn, while earnings grew 24% YoY and 12.4% QoQ to Rs 25.2 bn. ARPU declined 20.6% YoY and 8.9% QoQ to Rs 278/sub/month. MOU was 478 minutes, down 1.4% QoQ. However, overall mobile minutes grew 33.7% YoY and 7.7% QoQ to 140.7b. Rural market remains attractive: Bharti remains sanguine about the rural markets and believes that economic growth in rural India would continue unabated. ARPU in rural markets remains attractive at ~2/3rd of the overall Indian market ARPU. Low tariffs (high affordability) is the safety net against competition: Bharti believes that very low tariffs prevailing in the Indian market are the biggest safety net for incumbents against increasing competition. Bharti's significant coverage advantage would ensure that incremental margins are in line with the current margin profile. Bharti MTN Deal: Bharti and the MTN group are in talks to discuss exclusively a potential transaction. The MTN group is present in 21 countries of Africa and the Middle East. High tariffs and relatively low penetration in Africa makes it an attractive market for Bharti. The scope for cost and tariff reductions could trigger significant volume growth opportunity in the African markets. Bharti, thus, remains best-placed, given low capex intensity, un-leveraged balance sheet, and scale advantage. Bharti trades at an EV of 8x FY11E EBITDA and 14.1 x FY11E EPS. Bharti is well positioned with strong incumbency advantage and healthy balance sheet.

Buy Axis Bank

We believe Axis Bank’s planned equity dilution of about 17% is a precursor to marketshare gains at a faster growth rate of 8-10 percentage points above the industry over the next few years, strongly positioning the bank for the imminent revival in GDP growth from early FY2011E onwards. This dilution will result in book value accretion of about Rs 94 per share (25% increase over pre-dilution estimates), with a reasonable post-dilution leverage of 12x, average RoEs of about 16% over FY2010-11E and EPS dilution of about 7.5% in FY2011E. Amongst factors that drive competitive advantage, steady branch expansion, comprehensive product range and channel presence are driving consistent CASA marketshare gains (increased fourfold since FY2003). Moreover, diverse fee income streams, including cash management, syndication, bond underwriting, wealth management and cards, apart from the traditional CEB and Fx income, contribute a meaningful 2% of average assets. At the CMP, the stock is trading at attractive valuations of 2.0x FY2011E ABV (post-dilution). Post-dilution valuations imply an almost 30% discount to HDFC Bank, despite similar return ratios over FY2010-11E. We maintain a Buy on the stock with a 12-month Target Price of Rs 1,106.

Buy - Bayer CropScience

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Bayer CropScience (BCS), a subsidiary of Bayer AG Group, which is a world leader in agrichemicals, enjoys 23% market share in the Indian market. We believe that there exists substantial opportunity for company to grow its domestic business considering that India consumes an average 0.48kg of pesticides per hectare (ha) compared to 4.5kg/ha in the US and 10.7kg/ha in Japan. For FY2010E, we estimate BCS to register muted sales owing to the prevailing drought-like conditions though exports would be stable. On exports front, around 80% of BCS's export revenues come from Bayer AG’s group companies. If Bayer AG outsources 10% of its requirements from its global subsidiaries, BCS stands to benefit immensely. Pertinently, BCS registered strong 20.5% CAGR in export revenues during CY2005-FY2008. On financials, we estimate BCS to improve its EBITDA margins in FY2011E to 13.1% from 11.1% in FY2009 while registering robust RoE of 24% on the back of its ongoing restructuring exercise. BCS has shut its Thane plant (around 108 acres), which could come up for sale. At Rs 349, the stock is quoting at 9.5x FY2011E EPS. Our SOTP Target Price is Rs 501 with a Target P/E of 10x for its core business and 50% discounted value of the Thane land (Rs101/share post tax). We recommend a Buy on the stock.

Buy Ipca Laboratories

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Ipca Laboratories (Ipca), a market leader in anti-malarials and rheumatoid arthritis segment, has grown at steady pace in the past, posting a CAGR of 15.7% in net sales and a CAGR of 24.1% in net profit over FY2005-08 primarily driven by its domestic formulations segment. Going forward, we expect the next leg of growth for the company to come from the export segment as it leverages its API capabilities to create a sturdy business in the regulated and emerging formulations market. We estimate Ipca’s net sales to post a CAGR of 17.7% and adjusted net profit to register CAGR of 40.1% over FY2009-11E. At Rs740, the stock is trading at 10.8x FY2010E and 8.7x FY2011E Earnings. We believe the stock is at attractive valuation compared to its historical trading band of 5-15x. We recommend Buy on the stock with a Target price of Rs 855.

Buy Apollo Typres

Apollo Tyres (ATL), India’s premier tyre company which is currently ramping up its capacities to 1,000TPD from 744TPD in India (through both green and brown-field additions, entailing an investment of Rs 1, 000cr) is well-positioned to take advantage of the revival in the domestic and global auto industries. Further, the substantial decline in the prices of natural rubber and other crude related raw materials from their peak levels in 1HFY2009 is expected to boost ATL’s profitability going ahead. Also, we expect ATL stands to benefit on account of a demand-supply mismatch in the cross-ply segment on account of the existing players concentrating on building new radial facilities which would lead to better realisations in cross-ply segment thereby improving its margins and profitability in the long term. Further, in May 2009, Apollo acquired 100% shareholding of Vredestein Banden (VBBV), a Dutch tyre manufacturing company, with a production capacity of 5.5mn tyres and enjoying a market share of 1.67% in the European market. This acquisition is expected to add further impetus to the company’s growth in overseas markets. At Rs 42, the stock is currently trading at 6.4xFY2011E Earnings. We recommend a Buy on the stock with a Target Price of Rs 53.

Buy Madhucon Projects

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Madhucon Projects (MPL) has a good mix of assets, which yield consistent returns and cash flows and which we believe will facilitate it to continue investing in the high-growth businesses of real estate, power and coal going ahead. We prefer MPL on account of the following: 1) Cooling commodity prices, which we believe would benefit MPL as it has orders with fixed price contracts; 2) Despite the recent run up in the stock, there exists a substantial valuation arbitrage between MPL and its peers; 3) MPL is one of the biggest beneficiaries of the improving liquidity scenario as it has an attractive portfolio of offerings; and 4) Certain catalyst/triggers (power and coal business) are still not priced in. We have assigned a PE of 8x FY2011E EPS of Rs 25.7 for its core construction business, 1x FY2011E P/BV for its BOT business at a value of Rs 270 cr (Rs73/share). On the real estate front, we have valued the land, at Rs 18.9 cr (Rs 5.1/share). At Rs 227, the stock is trading at attractive valuations, 6.7x and 5.0x on FY2010E and FY2011E Earnings respectively, after adjusting for BOT projects, power and real estate. Therefore, we recommend a Buy on the stock with a SOTP Target price of Rs 305.

Buy - Usha Martin

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History The company is the world’s second largest steel wire rope manufacturer. It is integrated as it has coal and iron ore mines. Steel volumes are expected to be higher sequentially in 2QFY10. The company has started exporting iron ore again as it becomes economically viable at current prices and has already sold ~100,000 tonnes till now in FY10. It produces its own power. Here also it is increasing the capacity so that it will reach about 114 MW by FY11. Hence it is a company which is going to have a huge saving on cost going ahead. The stock currently trades at 10.0x and 7.7x of its FY10E and FY11E earnings, respectively. We recommend buying the stock with price target of Rs 90. (10x of FY11E EPS)

Buy Allied Digital

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Allied Digital Services (ADSL) is riding on high-growth domestic markets of system integration (SI); IT infrastructure management services (IMS) and remote infrastructure management (RIM). RIM is expected to be $13-15bn opportunity for the Indian IT industry by ’13 from the current $3.6bn, as per the latest Nasscom and McKinsey report. Recent acquisition of EnPointe Global Services (EGS), the US-based IMS provider, marks ADSL’s foray into international markets. Strong revenue visibility, changing business mix, improving margins and higher return ratio make it a good investment bet. We expect 60%-70% CAGR in EPS over next 3 years. At the current market price of Rs 470, stock trades at 7.8x and 6.5x of FY10E and FY10E earnings, respectively. This makes it quite an attractive investment bet.

Buy Cairn India

The company is set to emerge as one of India’s leading petroleum producer - and possibly the largest onshore producer - once its oilfields in Rajasthan reach peak production in coming years. Higher production will boost revenue in the coming quarters. Going ahead, the profits are likely to show astonishing returns on year on year basis, assuming that the company would be able to meet its production targets and there would not be any major negative movement in crude prices and no substantial appreciation in rupee from current levels. So, we recommend to buy this stock and hold for a period of 1-2 years with target price of Rs 375.

Buy Reliance Industries

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Considering it has successfully executed its two mega ventures, viz. KG basin gas and the RPL refinery, we expect them to be the key drivers of profitability over the next few years. We remain positive on RIL’s future growth prospects. At current market price of Rs 2060, RIL is currently trading at 16.8x and 12.5x of FY10E and FY11E earnings respectively. We expect RIL to deliver 30.8% CAGR in earnings over next two years (FY09 – FY11E). Historically the stock trades at an average of 15x its 1 year forward earnings. Considering this our target price for the stock stands at Rs 2,475 (15x of FY11E earnings of Rs 165), providing an upside potential of 20% from current levels. We recommend a Buy on RIL.

Buy Punjab National Bank

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History Apart from robust growth in fund-based income, the bank’s other income (which includes more stable fee-based income) has grown at a healthy pace. While an extensive branch network should continue to aid PNB to deliver robust business growth, the relatively high CASA ratio should ensure better NIMs, compared to its peers. The technology initiatives (100% CBS implementation) along with prudent lending practices would also help towards keeping costs under check and maintain asset quality. While PNB also holds 74 per cent in PNB Gilts and 30 per cent in Principal PNB Mutual Fund, any progress over the IPO of UTI AMC (PNB holds 25 per cent stake) could rub off positively on the stock.

Buy Tulip Telecom

Strong technical advantages in its segment of operations, continuing engagements with high-value clientele with big technology spends and bright prospects for new business segments give Tulip IT an edge in the domestic market. At the current market price of Rs 1030, the stock trades at around 10.6x and 9.1x of its FY10E and FY11E earnings which is quite attractive. So, we recommend to Buy this stock with a price target of Rs 1375 (12.5x of FY11E earnings) with a one year time horizon.

BSE NSE Market Report 31 July 2009

BSE NSE Market Report 31 July 2009

The key benchmark indices surged for the second straight day as gains in Asian stocks, higher US index futures and better-than-expected Q1 June 2009 earnings of India Inc boosted sentiment. The BSE 30-share Sensex rose 282.35 points or 1.83%. The barometer index today struck its highest closing level in more than 13 months. Banking, oil & gas, IT and FMCG stocks rose. But realty stocks fell in volatile trade. The market breadth, indicating the overall health of the market weakened in the second half of the trading session compared to earlier strong breadth.

The Sensex is up 6023 points or 62.43% in calendar year 2009 as on 31 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,509.91 points or 92.02% as on 31 July 2009.

Coming back to today's trade, a bout of intraday volatility was witnessed. After surging in morning trade on firm Asian stocks, the market pared gains in early afternoon trade. The market firmed up again later. The market once again pared gains in mid-afternoon trade. The market surged in late trade on rally in RIL.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1921 companies rose 20.5% to Rs 71437 crore on 5.1% fall in sales to Rs 673497 crore in Q1 June 2009 over Q1 June 2008. The earnings season gets over today, 31 July 2009.

But a weak monsoon remains a cause of concern. India's monsoon rains were 18% below normal in the week to 29 July 2009, having been above normal in the preceding two weeks. Total rainfall since the beginning of June was 19% below average, the India Meteorological Department said on Thursday. On the flip side, water levels in India's 81 main reservoirs rose to 35% of capacity in the week to 30 July 2009, up from 23% a week earlier and 31% a year ago, government data showed. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Farm Minister Sharad Pawar on Friday, 31 July 2009, said that summer-sown crops such as sugarcane, oilseeds and cotton have covered more than half the normal area, and sowing is likely to rise. He also said weak monsoon rains would have a marginal impact on inflation.

World equity funds garnered $9.5 billion in the week ending 29 July 2009, according to data the latest data from global fund tracker EPFR Global. The inflow was the highest since June 2008.

Emerging markets continued to be the darling of investors, with dedicated BRIC (Brazil, Russia, India and China) equity funds seeing net inflows for a 19th straight week. India equity funds took in a year-to-date high of $211 million in the most recent week, while China and Greater China stock funds saw $711 million in fresh money.

European equities were flat after moving between gains and losses in intraday trade. Key benchmark indices in France and UK were up by between 0.01% to 0.09%. Germany's DAX fell 0.07%.

Asian stocks climbed today as better-than- expected earnings and a rally in commodities lifted confidence the global economy is headed towards recovery. Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.72% to 2.72%.

Trading in the US index futures indicated Dow could rise 36 points at the opening bell today, 31 July 2009.

US markets rallied on Thursday, 30 July 2009, logging the highest close since November 2008, despite a late-afternoon pullback. It was the highest close for the Dow and S&P since November 2008, and for the Nasdaq, since October 2008.

The Dow Jones Industrial Average rose 83.74 points to close at 9154.46. The S&P jumped 1.2% to close near the 1,000 mark and the Nasdaq added 0.84% to finish near the 2,000 mark. In economic news, the number of US workers staying on jobless rolls fell to the lowest level in three months while the four week moving average for new claims dropped by 8250 to 559000, the lowest level since late January 2009.

The BSE 30-share Sensex was up 282.35 points or 1.83% to 15,670.31 its highest closing since 17 June 2008. The Sensex rose 344.85 points at the day's high of 15,732.81 in morning trade. The Sensex rose 61.51 points at the day's low of 15,449.47 in early trade.

The S&P CNX Nifty was up 65 points or 1.42% to 4,636.45 its highest closing since 11 June 2009. Nifty August 2009 futures were at 4636.05 at almost the same level as the spot closing of 4636.45.Turnover on NSE's futures & options (F&O) segment was Rs 57151.46 crore, much lower than Rs 94477.38 crore on Thursday, 30 July 2009.

BSE clocked a turnover of Rs 6,249 crore, higher than Rs 6,065.04 crore on Thursday, 30 July 2009.

The market breadth, indicating the overall health of the market, was positive. But the breadth weakened when compared to a strong breadth earlier in the day. On BSE, 1401 shares advanced as compared with 1,299 that declined. A total of 101 shares remained unchanged.

Among the 30-member Sensex pack, 23 rose while rest declined.

The BSE Mid-Cap index was up 1.17% and the BSE Small-Cap index was up 0.03%. Both these indices underperformed the Sensex.

The BSE FMCG index (up 3.17%), the BSE Oil & Gas index (up 2.65%), the BSE Bankex (up 1.92%), outperformed the Sensex.

The BSE Realty index (down 1.36%), the BSE Healthcare index (up 0.39%), the BSE Power index (up 0.47%), the BSE TECk index (up 0.49%), the BSE Capital Goods index (up 1.05%), the BSE PSU index (up 1.19%), the BSE Auto index (up 1.24%), the BSE Metal index (up 1.47%), the BSE Consumer Durables index (up 1.6%), the BSE IT index (up 1.81%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 3.01% to Rs 1,957.10 on bargain hunting after a recent sharp fall. The Supreme Court on Thursday said, it will give a date on 1 September 2009 to expedite the decision pertaining to the Krishna-Godavari basin gas dispute between Mukesh Ambani's Reliance Industries (RIL) and Anil's Ambani's Reliance Natural Resources (RNRL). RNRL counsels Mukul Rohatgi and Mahesh Agrawal sought an early decision in the case.

RNRL chairman Anil Ambani has said the gas supply dispute between RIL and Reliance Natural Resources (RNRL) vitally affects public interest and will seek an early judgment in the case. The matter concerns power projects of national importance representing a capacity of 12,000 megawatt (MW) and an investment of over Rs 50,000 crore and affects the interests of over 10 million shareholders, he said.

The Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.

RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.

In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row.

Oil exploration pivotals rose after US crude futures bounced back on Thursday, ending nearly 6.4% higher to reverse losses suffered in the previous session as Wall Street sizzled and the dollar edged lower. India's largest state-run oil exploration firm by sales ONGC rose 5.91%. Cairn India rose 1.33%. On the New York Mercantile Exchange, September crude settled up $3.59, or 5.67%, at $66.94 a barrel. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

FMCG stocks rose on improvement in India's annual monsoon in July 2009 after a dry spell in June 2009. FMCG firms derive substantial revenue from rural sector. Britannia Industries, ITC, Dabur India, REI Agro, United Spirits, Tata Tea, rose by between 0.84% to 3.27%.

India's largest FMCG company by sales Hindustan Unilever rose 3.32%. The company reported a 2.68% fall in net profit to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared during trade hours on Tuesday, 28 July 2009.

Bank stocks rose on strong Q1 results from State Bank of India, India's biggest commercial bank in terms of branch network. State Bank of India (SBI) rose 5.29% extending Thursday's 4.37% gains as its net profit jumped 42.02% to Rs 2330.37 crore on 29.86% rise in total income to Rs 21041.51 crore in Q1 June 2009 over Q1 June 2008. The results hit the market during trading hours on Thursday 30 July 2009.

India's second largest private sector bank in terms of operating income HDFC Bank rose 2.73% as its ADR rose 3.93% on Thursday. India's largest private sector bank in terms of operating income ICICI Bank rose 0.49% as its ADR rose 4.47% on Thursday.

Rate sensitive realty shares fell on profit taking after a recent rally. Investors are concerned that the central bank may start reversing its interest-rate cuts in early 2010 as food and energy prices fan inflation. Rising interest rates may dent property demand as most of the commercial and housing deals are driven by finance.

India's largest real estate developer by sales DLF fell 1.48% even as net profit surged 236.23% to Rs 100.40 crore on a 652.69% spurt in sales to Rs 417.97 crore in Q1 June 2009 over Q4 March 2009. The company announced the result after market hours on Thursday. 30 July 2009. Unitech, Indiabulls Real Estate, Phoenix Mills and Omaxe fell by between 1.35% to 3.57%.

India's largest mobile telecom player by sales Bharti Airtel fell 3.06% on reports the merger deal between Bharti Airtel and South Africa's MTN is likely to extended to September this year. The two companies could extend the exclusivity period for discussion by a few weeks. The original timeline for discussions expires on 31 July 2009. In the event of the deal going through, the Bharti-MTN combined entity will be the third-largest wireless group globally.

India's second largest mobile services provider by sales Reliance Communications fell 2.11%, reversing early gains, ahead of its Q1 June 2009 results. The consolidated net profit rose 8.3% to Rs 1637 crore in Q1 June 2009 over Q1 June 2008. The results were announced after market hours today.

IT stocks rose on better-than-expected Q1 June 2009 results by IT pivotals in the past few days. India's second largest IT exporter by sales Infosys rose 2.66% as its American depository receipt (ADR) rose 1.56% on Thursday. India's thirds largest IT exporter by sales Wipro rose 0.43% as its ADR rose 1.77% on Thursday. But India's largest IT exporter by sales TCS fell 0.68%.

Capital goods and construction stocks rose on government's thrust on infrastructure sector in Union Budget 2009-2010. Nagarjuna Construction Company, Hindustan Construction Company, Era Infra Engineering, Gayatri Projects and IVRCL Infrastructure & Projects rose by between 1.95% to 5%.

From capital goods space, Bharat Heavy Electricals, Larsen & Toubro, Punj Lloyd, ABB, BEML, Siemens rose by between 0.57% to 1.55%.

Some power stocks fell on profit taking even after a strong response to the Adani Power initial public offer (IPO) which opened for subscription on Tuesday, 28 July 2009. Reliance Power, Power Grid Corporation Of India, NTPC, CESC fell by between 0.47% to 3.24%.

By 16:00 IST on final day of the bidding today, 31 July 2009, the Adani Power IPO was subscribed 21.37 times.

Reliance Infrastructure rose 1.69% after net profit rose 25.35% to Rs 316.57 crore in Q1 June 2009 over Q1 June 2008. The company announced result after market hours on Thursday, 30 July 2009.

Tata Power Company rose 0.63% after its net profit rose 144.19% to Rs 396.97 crore in Q1 June 2009 over Q1 June 2008. The result hit the market at the fag end of the trading session

Auto stocks rose after posting strong Q1 June 2009 results in the past few days. India's largest truck market by sales Tata Motors rose 6.61%. The company on Tuesday, 28 July 2009, reported 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008.

India's largest tractor maker by sales Mahindra & Mahindra rose 0.56% extending Thursday's gains after net profit rose 151.63% to Rs 400.80 crore on 28.04 % rise in total income to Rs 426.61 crore in Q1 June 2009 over Q1 June 2008. The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings and Finance and Punjab Tractors which were merged with the company. Hence, the figures of the current quarter are not comparable with those of the previous year's quarter. The results hit the market during trading hours on Thursday, 30 July 2009.

India's top small car maker by sales Maruti Suzuki India rose 1.11%.

But, India's largest bike maker by sales Hero Honda Motors fell 2.08%. The company posted 83% jump in net profit to Rs 500 crore on 34% rise in total revenue to Rs 3865 crore in Q1 June 2009 over Q1 June 2008. The company announced the Q1 result after market hours on Wednesday, 29 July 2009.

Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 4.02% on Thursday, 30 July 2009.

India's largest private sector steel maker by sales Tata Steel rose 2.12%. The company's net profit fell 47% to Rs 789.83 crore on a 8.16% decline in total income to Rs 5661.89 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on Wednesday, 29 July 2009.

But, India's second largest steel maker by sales Steel Authority of India fell 0.11%. Net profit fell 27.74% to Rs 1326.09 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during trading hours on Thursday.

India's largest copper market by sales Sterlite Industries rose 2.91%. Net profit fell 68.5% to Rs 112.70 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on Wednesday, 29 July 2009.

India's largest aluminum maker by sales Hindalco Industries rose 6.65% after the company reported lesser-than-expected 31% fall in net profit to Rs 480.56 crore in Q1 June 2009 over Q1 June 2008. The result hit the market in mid-afternoon trade.

India's second largest aluminum maker by sales National Aluminum Company rose 5.15% even as net profit fell 75.92% to Rs 126.45 crore in Q1 June 2009 over Q1 June 2008.

Sugar stocks fell on concerns sugar prices will fall on higher supplies after the government extended duty-free imports of both raw and refined sugar beyond 31 July 2009. Bajaj Hindusthan, Shree Renuka Sugars and Dhampur Sugars fell by between 0.89% to 3.88%.

Mahindra Satyam clocked highest volume of 1.73 crore shares on BSE. Unitech (1.65 crore shares), Suzlon Energy (1.62 crore shares), Ispat Industries (1.36 crore shares) and Cals Refineries (1.27 crore shares) were the other volume toppers in that order.

Reliance Industries clocked highest turnover of Rs 198.55 crore on BSE. State Bank of India (Rs 193.77 crore), Mahindra Satyam (Rs 181.9 crore), DLF (Rs 176.71 crore) and Aban Offshore (Rs 164.20 crore) were the other turnover toppers in that order.