BSEIndia: All Stock Market News: 01/27/08

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A TIME COMMUNICATIONS PUBLICATION

VOL. XVII No. 11 Monday, Jan. 28 – Feb. 3, 2008 Pages 19

Markets can stabilise

only if FIIs turn net buyers

By Sanjay R. Bhatia

Carnage and blood bath was witnessed on Dalal Street as markets collapsed on the back of weak global cues and lack of

liquidity in the system. Traders and speculators were seen unwinding their positions in frontline index heavyweights and

mid-cap and small cap stocks. Incidentally, FIIs remained net sellers in the cash segment but were net buyers in the

derivatives segment. Moreover, domestic institutional

investors were net buyers. The volumes recorded have been

lower while the breadth of the market has remained weak

during the course of the week.

Global cues have remained negative with weak US economic

data and fears of the US reeling under a recession. However,

the U.S. Federal Reserve's decision to reduce interest rates

by 75 bps has helped in improving the global sentiment.

Crude oil remained range bound on news of the US

economic slowdown. Lack of liquidity continued to be the

bane of the markets. With IPOs sucking out liquidity and

FIIs remaining net sellers, the marketmen faced a tough time

paying for the margins, which triggered a sell-off on the

domestic bourses.

The earnings season continued to meet market expectations.

However, it has taken a back seat due to the continuing liquidity pressure, which is likely to improve from the first week

of next month, as IPO refunds begin. Now it is important that FIIs also turn net buyers for the markets to stabilise and a

sustainable rally to unfold. In the meanwhile, the markets would continue to take cues from global markets, crude prices

and the monetary policy to be announced next week. Stock specific action will be witnessed amidst occasional bouts of

volatility and choppiness.

Technically, the Sensex has support at the 16,545 and 15,699 levels. On the upside, if the Sensex can sustain above 17,475,

it is likely to test the 18,526 and 18,715 levels. The 4482 is an important support level for the Nifty. On the upside, if the

Nifty manages to sustain above 5156, it is likely to test the 5519 and 5575 levels.

Traders and speculators can buy Apollo Tyres with a target price of Rs.70-75 and a stop loss of 39.

What a blow-up!

BAZAR.COM

By Fakhri H. Sabuwala

Last week shall go down in the annals of the world financial markets as the most chaotic week ever. A meltdown, a blow-

up, a blood bath…call it what you may. But the fact remains that nothing like this was ever anticipated or seen before. It

was not only with the Sensex or the Nifty. Every benchmark index felt the quake and volatility. Actually, Friday, 18

January 2008, itself, had signaled the looming fear of the US recession and the gravity of the sub prime crisis. Selling by

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FIIs was the single trigger that prompted the cartel of large Indian operators to follow suit and turn into bears almost

overnight. Suddenly all values evaporated and the F&O scrips just sank! So massive was the sell off that scrips like Ispat,

Nagarjuna Fertilisers, IFCI, JP Hydro lost more than 60% of their value in just two days.

The large caps and benchmark heavyweights, too, melted and disabled the market after hitting the 10% lower circuit filter

in a matter of minutes after opening on Tuesday.

A payment crisis loomed large and brokers and their risk managers spent sleepless nights in arranging for monies for the

mark to market margin payments and for recovery of losses suffered by the punters. Mayhem it was with brokers and

margin funders just selling off the client's collaterals in a bid to recover whatever they could. The crisis was of such a

dimension that no share broker could give fresh buying limits to his client and add to the pressure of his pay-in.

The sad story was of the disarray among brokers and genuine investors' wealth unable to participate and enter at such

attractive levels. The anger was at its peak when marketmen battered the recently installed bronze statue of a bull which

had supposedly brought in the bad luck to the Indian capital markets!

The market, in all probability, will come back to Tuesday's low level once again and the large caps, mid-caps or even

small caps may test last Tuesday's low individually to create a double bottom, before they exhibit a slow but sure rise in

coming months. The pain may persist for months and the recovery of funds lost by speculators will be the only agenda for

most intermediaries.

The coming days may also reveal the making of this crisis and its genesis. What role could SEBI have played to avert this

crisis? The crisis may take a political turn and uncover some embarrassing skeletons form cupboards. Many heads may

roll and a commission may be set to inquire into it. But it may be of no avail as the fault lies nowhere but in human

emotions. It's the weakness of making a quick buck and mainly greed.

The world markets witness a go slow on future and options game on individual scrips. But Indian bourses admit scrips to

F&O segment from day one! Look at the newly listed scrips like DLF, RNRL, RPL or scrips with lesser credentials like

Ispat or Nagarjuna Fertilizers or IFCI. When such blatant recklessness is displayed, a collapse is inevitable.

One may argue that a larger number of F&O scrips add to the liquidity on the bourses. Yes, but they simultaneously offer

new avenues to FIIs to hedge their positions and make a fast buck at our cost. It is, therefore, time to reconsider the whole

F&O approach, prune the list and place sound risk management systems in place. Else, await another such crisis again

and again.

The loss of money, trust, confidence is the price we paid to discover how brittle our system is. It will take long for the

blood to dry up and clean Dalal Street. Till then, keep your fingers crossed and pray to God to save the genuine investors.

Sustaining at higher levels can be an issue

By Hitendra Vasudeo

In last week's update, we had indicated that the market had surrendered to a correction. The headline was apt for the

situation witnessed last week. The bulls were at the complete mercy of the bears as the market collapsed until the bulls

stood on their feet later to regain some lost ground. Thanks to the bears who got tired of earning money that they gave a

chance to the bulls to survive. The bears took full revenge

of the last six months on the bulls.

The moral of the story is that the exhaustion of any one

side creates an opportunity for the opponent. Bulls at a

point got overloaded and did not have the power to pull it

off further were exhausted. The bears took advantage of

the opportunity to pounce on the heavy bulls and bring

them to their knees until the bears were tired and

exhausted after overhauling the bulls. This story of bulls &

bears would continue forever each one takes advantage of

the other's weakness from time to time. Most of the time,

the king survives but the soldiers die or get wounded. The

large players motivate the retail traders every time like the

soldiers who die in a war!

Last week, the Sensex opened with a gap down from its

previous Friday closing. The previous Friday's closing on

18/01/08 was at 19013.70 and the Sensex opened with the gap at 18919.57 and maintained the same as the high of the

week. It collapsed to a low of 15332.42 like a pack of cards. Further, it took support of the long term trend line taken from

4277(May'04) and 8799(June'06). The trend line value was at 15561 and the low registered was 15332 and recovered

sharply. Further, it pull back to close the week ended on 25/01/08 at 18361.66 showed a net fall of 655 points. At one

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point, the week to week fall had maximized to 3686 points. It was a perfect follow to the terminal pattern breakdown of

the trend lines of

18182 and 18886. The

breakdown was with

1795 points for the

week

ended

18/01/08. The follow

up fall at one point

was to the extent of

3686 points.

WEEKLY UP TREND STOCKS

In last week's update,

we had mentioned

that the 50 day

average was violated

and

the

Sensex

would move towards

the 200 day EMA and

SMA. Last week, we

saw the same happening. What was surprising is the time that it took to complete and test the 200 day EMA and SMA.

The fall towards the averages was expected but could have been attained gradually in a fortnight or a month against

which it took just 2-3 trading sessions. Recovery with bullish candlestick pattern was expected and at the end of the week

we got a Hammer candlestick pattern on weekly charts, which has bullish implications. How far the Sensex can go up and

sustain at higher level is the question, which will also determine the effect of the Hammer candlestick pattern this time.

Let the price move below Center Point or Level 2 and when it move back above Center Point or Level 2 then buy with

what ever low registered below Center Point or Level 2 as the stop loss. After buying if the price moves to Level 3 or

above then look to book profits as the opportunity arises. If the close is below Weekly Reversal Value then the trend will

change from Up Trend to Down Trend. Check on Friday after 3.pm to confirm weekly reversal of the up Trend.

Last

Center

Relative

Weekly

Close

Point

Strength Reversal Trend

Scrips

Level 1 Level 2

Level 3 Level 4

Value

Date

Stop

Loss

Buy

Price

Buy

Price

Book

Profit

Book

Profit

WELSPUN-GUJARAT

496.60 192.4

381.4

455.2

570.4

759.4

80.1

477.7

09/11/07

REI AGRO

970.00 680.3

857.3

921.7

1034.3

1211.3

77.7

928.8

28/12/07

AKRUTI NIRMAN

1204.40 480.9

953.9

1176.5

1426.9

1899.9

72.9

1216.1

28/12/07

EXIDE INDUSTRIES

80.15 43.4

65.8

73.9

88.2

110.6

67.9

79.6

14/12/07

HERO HONDA MOTORS

693.00 463.7

602.7

651.3

741.7

880.7

48.8

686.5

25/01/08

The Sensex did well to pull back from the low of 15332 to close the week at 18361. The pull back levels of the fall from

21206 to

15332

were placed at

17586-18278-18970.

Against these pull

back levels, the

Sensex

has

managed to cross

the first two pull

back level of 17586

and 18278 as the

week closed at

18361.

WEEKLY DOWN TREND STOCKS

Expect the Sensex

now possibly to

test the third pull

back level of 18970

in days to come.

Initial resistance during the week will be at 18900-19100. In case if it sustained then expect the pull back to get extended to

19743.

Let the price move above Center Point or Level 3 and when it move back below Center Point or Level 3 then sell with

what ever high registered above Center Point or Level 3 as the stop loss. After selling if the prices moves to Level 2 or

below then look to cover short positions as the opportunity arises. If the close is above Weekly Reversal Value then the

trend will change from Down Trend to Up Trend. Check on Friday after 3.pm to confirm weekly reversal of the Down

Trend.

Last

Center

Relative

Weekly

Down

Close

Point

Strength Reversal Trend

Scrips

Level 1 Level 2

Level 3 Level 4

Value

Date

Cover

Short

Cover

Short

Sell

Price

Sell

Price

Stop

Loss

MATRIX LABS

161.90

35.4

121.1

166.1

206.9

292.6

20.54

211.54

18/01/08

I-FLEX SOLUTIONS

1125.00 350.0

875.0

1150.0

1400.0

1925.0

21.22

1369.25 20/12/07

TECH MAHINDRA

728.25

303.8

593.8

749.4

883.8

1173.8

25.86

942.69

28/12/07

SPICE COMMUNICATIONS 39.65

7.9

27.6

35.3

47.3

67.0

26.22

49.52

11/01/08

PATNI COMPUTERS SERV 268.60

123.4

211.4

242.2

299.4

387.4

28.56

289.16

20/12/07

Support during the week will be at 17537-16516-15332. Weekly resistance will be at 19100 and 19743.

Sensex Wave Analysis

Wave I-2594 to 3758

Wave II-3758 to 2904

Wave III- Internals as follows:

Wave 1- 2904 to 6249

Wave 2-6249 to 4227

Wave 3-4227 to 12671

Wave IV- 12671 to 8799

Wave V- Internals as follows:

Wave 1-8799 to 14724

Wave 2-14724 to 12316

Wave 3-12316 to 21206.

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Wave 4-21206 to 15532 (current ongoing move)

Internal of Wave 4

Wave A-21206 to15532 (Current ongoing move)

Wave i-21206 to 2505

Wave ii-2505 to 20985

Wave iii-20985 to 15332

Wave iv-15332 to 18406 (current ongoing move)

When Wave iv gets completed then expect a slide down to either create Wave v failure or test the low of 15332 to create

the double bottom or violate 15532 to move down towards 14700.

The pull-back levels of the Wave iv will be the retracement of the fall of Wave iii, which is the fall from 20985 to 15332.

The 0.618, 0.750 and 0.875 pull back levels are placed at 18823-19569-20275. Wave iv can get into further micro internals

before confirming a completion of Wave iv to move down to Wav iv

Alternative count:

Wave I-2594 to 3758

Wave II-3758 to 2904

Wave III- Internals are as follows:

Wave 1- 2904 to 6249

Wave 2-6249 to 4227

Wave 3-4227 to 12671

Wave IV- 12671 to 8799

Wave V- Internals are as follows:

Wave 1-8799 to 14724

Wave 2-14724 to 12316

Wave 3-12316 to 21206.

Wave 4-21206 to 15532

Wave 5-15532 to 18406 (Current rise and move in progress)

The alternate count stands because the Sensex has tested the correction level of 15712 and recovered to close higher. If the

Sensex is able to maintain and sustain above resistance of 18800-19100, then the alternate count will have a strong footing

to test back the top. Subsequent fall can create a higher bottom before moving up further. A sustained move above 19100

and a fall thereafter below 18800 can create a higher bottom to test back the top.

Broad Market Review

None of the sectors or indices have shown significant recovery even though the Sensex made a significant pull-back. BSE

Bankex has pull-back to almost 0.618 levels as the other indices struggled to pull back to 0.500 retracement levels. The

strength has emerged on the BSE Bankex and the Bank Nifty. Both these indices need to maintain at a higher range and

not collapse from hereon. Stock wise strength in the banking sector has been witnessed. It now depends on how banking

stocks stand collectively to trigger the market further towards the highs.

In terms of weekly relative strength, which is based on the strength for the last 13 weeks, the strongest at this point are the

Banking indices, followed by BSE Realty and BSE Oil& Gas. These indices have gathered strength because on the slide

their fall was less sharp on relation to the overall Nifty/Sensex fall. On a recovery, banking, realty and oil & gas recovered

sharply to support the Sensex/Nifty on the pull-back.

Strategy for the week

Overall strategy would be to book profit or exit long positions in loss on rally to the pull-back level of 18823-19569-20275.

* The current crisis started when authorities turned a blind eye to the runaway share prices of RPL, RNRL and Ispat

Industries not even caring to enquire how it was happening or who was playing.

TOWER TALK

* Such a fall out at commodity exchanges is not ruled out as the attention of the fast buck makers shifts there.

* The risk management systems of the NSE are under the scanner and the government may clip the wings of this high-

flyer exchange.

* You may have heard that 'F&O is poison'. But are the brokers not prudent enough to manage risks? Everything is rosy

when the going is good but when the wheel punctures, it's just suicidal!

* Reliance Powers grey market premium beaten down. Massive withdrawal of applications speaks of the fear gripping

IPO investors.

* IPOs opening this week will fund the going tough and give sleepless nights to promoters and lead managers as the fears

of undersubscription are very real.

* The bright side to the recent crash is that one can find many value buys once again. Investors shouldn't miss this chance

and start accumulating scrips of their choice.

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* Blue Bird, Ind-Swift Labs, Jupiter Biosciences, Micro Tech, Stone India, Lokesh Machines, Accurate Transformers,

International Combustion, Hind Rectifiers, Ansal Housing are some fundamentally sound scrips that have been beaten

down by around 50%. Grab them before they shoot back to their normal multiples.

* If the grapevine is to be believed, even the big bull has faced huge losses in this carnage.

* The recent massacre has once again proved that Indian markets haven't yet matured. It reacted the sharpest compared

to other global markets eroding most companies market cap by 30%-50%.

* Bhagyanagar India is allotting warrants at Rs.90 while the market price is Rs.48.There is a good upside possibility in the

stock.

* Speciality Papers has announced its intention of a bonus issue but not the ratio. Stock is good to accumulate at current

levels.

* Jetking India has spread its wings across the country. With a strong brand name and growth, the scrip is a good buy at

current levels. It is an investor friendly company with a good dividend payout.

* Sanra Capital a Citibank offshoot holds over 14% Asian Oilfield Services. The stock has reacted sharply and can be

accumulated for the long-term.

* Zenith Birla will soon declare interim dividend, bonus and subdivision of shares. It is also merging Tungabadra

Holdings, a steel pipe manufacturing company with over Rs.50 cr. turnover and profit of Rs.2.5 cr. A risk-free buy for the

medium-term.

* DIC India, Lanxess ABS, Bodal Chemicals are considered good to accumulate at current levels for the medium-term.

* Clelestial Labs is under consolidation. Circles close to the management have already bought a good chunk of shares in

the recent downtrend and it may bounce back to Rs.70.

* The grey market premium on IPOs weakened last week with Reliance Power at Rs.180/190, Future Capital at

Rs.360/370, On Mobile at Rs.75/80 and Emaar MGF at Rs.150/160.

By Saarthi

BEST BETS

Lok Housing & Constructions Ltd. (Code: 500256)

Rs.235.60

Incorporated in 1986, Lok Housing & Constructions Ltd. (LHCL) is the flagship company of the Mumbai based Lok

group, which specializes in mass housing and primarily caters to the needs of the middle-income group. It has

contributed significantly to the development of Mumbai and its adjoining suburbs with over 40 mini and mega residential

complexes, commercial centres, from single storey bungalows to multi storey towers, simple flats to penthouses and

plush condominiums comprising 17,000 units spread across 9 million sq. ft. area. Lok Nagari (Ambernath), Lok Terraces

(Vashi), Lok Upvan (Thane), Lok Vatika (Kalyan), Lok Nisarg & Lok Kailsah (Mulund), Lok Vihar (Powai), Lok Darshan

(Andheri) etc. are few of its popular and big projects. It is among the first few real estate players to develop an estimated

1.2 million sq. ft. of land in a single year way back in 1994. It boasts of being the first to start an SRA (Slum Rehabilitation

Authority) project in 1994. Notably, it is also among the very few construction companies in India to have instituted six

sigma quality system for operational excellence, timely delivery and seamless execution of large scale projects. Presently,

it has several residential projects under

construction including Lok Everest (Mulund),

Lok Amber (Ambernath), Lok Nirman (Khar),

Lok Prabhat (Virar) and few others at Thane,

Kalyan, Marol etc.

Importantly, LHCL has a land bank of

whopping 1222 acres across Mumbai, Pune

and Bangalore with a development potential

of 62.5 million sq. ft. Of these, 356 acres under

the company's belt on merger with group

companies. Most of the land has been

acquired long back at very low cost and is

located at Ambernath (80 acres), Kalyan (92

acres), Vasai (136 acres), Turbhe (180 acres),

Pune (425 acres), Bangalore(240 acres) and the

balance 69 acres spread across Andheri,

Malad, Khar, Thane & Virar in Mumbai. In

order to consolidate and emerge as a bigger player, the group recently merged Lok Shelter involved in urban

rehabilitation and reconstruction projects, Lok Global- involved in diverse infrastructure projects and Lok Holding - key

vehicle to acquire land with LHCL. Thus, the company has now got into two new promising business segments –

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infrastructure development and rehabilitation project. Although both have a huge potential, the company is betting high

on the latter and is looking to participate in the National Urban Renewal Projects comprising slum eradication projects

and demolition & reconstruction of old and dilapidated buildings. It has already submitted a proposal to the state

government to rehabilitate tenants of about 300 unsafe cessed buildings in Mumbai and simultaneously develop 6 million

sq. ft. in the heart of the city in association with MHADA. The government may cross subsidize the cost of redevelopment

through sanction of Floor Space Index (FSIs). Hence it's a win-win situation for either of them.

LHCL is holding nearly 180 acres as a salt pan land in Turbhe, which it intends to develop into a top quality township on

getting clearance. The company also plans to come up with a grand project on 125-150 acres of land and to be called as

'The Lok International City', which will be a landmark mega township resembling a small independent civilization and

possibly a first of its kind in the country.

Fundamentally, its equity stands enhanced to Rs.42.88 cr. against Rs.11.70 cr. due to merger of group companies/warrant

conversion. At the same time, the promoters' holding has increased to 51% against 23% last year. To fund its upcoming

projects, the company is seeking to raise more than Rs.800 cr. through QIB/FCCB/GDR/private placement etc.

Accordingly, it made a preferential allotment of 7,62,200 shares to Bennett & Coleman at Rs.197 and is planning to allot 50

lakh warrants to promoters at Rs.354 per share. Considering LHCL's huge land bank position in metros like Mumbai,

Bangalore and Pune coupled with rising property prices, this company is available fairly cheap at a market cap of Rs.800-

850 cr. The scrip hit a new 52-week high of Rs.390 on 1

January 2008 but collapsed 50% in the recent carnage. Although it

can go down further, investors can still expect 50% return from hereon in 12-15 months.

Look beyond the volatility and prepare for the rise

THE OTHER VIEW

By Suryadevara

"Prepare for the rise when the chips are down". This wise saying is very much relevant at the market place at this

juncture.

Massive sales pressed by the FIIs in the last two weeks sent shock waves into the market, which are yet to subside for real.

Since most investors had forgotten the impact of 'corrections' of earlier bull markets, heavily leveraged positions and high

levels of margin-funding were created in the hope of quick gains, ignoring the risk factors.

Merchant Bankers (just like average investors) seem to have forgotten the lessons of the past and supported massive IPOs

at unjustifiable premium, selling stories about the Sensex racing towards the 30000 level. Investors simply rushed towards

the IPOs irrespective of their pricing and size. The Reliance Power IPO which had targeted Rs.11,000 cr. collected record

funds of about Rs.2,50,000 cr. within just four days.

Sale by FIIs not only brought around 28% correction at the market place but also induced 'fear' in place of 'hope'. Amidst

this, now some analysts even started talking about an imminent bear phase. However, the market has recovered in the

last two days. Is this latest recovery, a trap and is this the time to dump equities and run for safer avenues?

The situation may not be that alarming. In fact, the movement of the past two weeks can be treated as a corrective phase

of the major trend of the bull market. Although the swift recent correction was painful, such corrections are healthy for

the major bull trend. It reminds one of the legendary Warren Buffet who said "Futures & Options are the weapons of

mass destruction". Traders who were in the F&O segment have now realized this after losing heavily in the last two

weeks.

Recent IPOs sucked huge funds (to the extent of around Rs.3,00,000 cr.) from the Indian market. FIIs, too, started to book

profits from the Sensex level of 21000. As is well known, sub-prime housing finance was sending ripples for the last few

quarters. When the simmering sub-prime problem turned worse, an emergency FED rate cut of 75 basis points was

announced. FIIs who got big hits in U.S.A (tens of billions of dollars) started booking profits across the globe to fund their

US losses. Moreover, global funds who wanted to take advantage of the potential gains from the US Bonds market (in

view of another expected FED Rate cut by the month end) started pulling out of Asian markets. All these factors created a

temporary liquidity crunch in the market place. This resulted in a panic-like situation. Though investors were not

prepared for a fall of this magnitude, it may be better for them to prepare for a rise instead of getting immobilised by the

recent fall.

Expected impressive growth of GDP of above 8% for the next few years ensures that the 'Indian Growth Story' remains

intact. Japanese Reserve Bank's decision not to opt for a rate hike should remove fears of capital flight out of India. Not

only the USA recession factor, but also the negligible growth rates in Canada, European countries and even Japan limit

the investment options for global funds. The recent rate cut by 25 basis point in Canada also confirms the trend. The

investment rush towards US Bonds may not last beyond the next week. Hence, FIIs may find it difficult to find a better

economy given the dismal growth rates recorded by developed nations. Since market bottoms cannot be declared with

precision, it may be wiser to prepare for the rise from the current levels. Moreover, if the FIIs realise the fact that India

Page 7

continues to be an attractive place for investments (especially after the required correction), the recent fall can turn out to

be a small valley before the next big mountain which can evolve in due course on the Indian bourses.

The Sensex fall from its peak level of 21206.77 (on 10-01-2008) to the low of 15332.42 (on 22-01-2008) does not reflect the

reality of the carnage that took place in the market. Some mid-cap scrips with high growth potential and tremendous

intrinsic values melted beyond recognition as investors simply lost their senses alarmed by the market fall, for example,

Jupiter Biosciences Ltd. which was trading at Rs.171.00 on 31-12-2003. At the Sensex level of 5839.00 is toady available for

a mere Rs.139.00 at the current Sensex level of 18361.00. This analyst believes that grabbing such scrips in the current

market offers huge upside potential with the least downside danger because they can go down further only if the

promoters, too, join the selling spree, which is most unlikely.

In fact, if investors want solid gains to recoup their recent losses, they must look at investments in beaten down scrips

of a promising sector which will not be adversely effected by the US problems. Pharma sector at present offers such an

impressive choice. Even with the globe-threatening problem of the impending US recession, medical spending in USA

and the developed countries is expected to increase. Indian pharma companies, which are taking full advantage of their

competencies, are expected to benefit from generics, bio-similar and crams segments of the global pharma pie. It really

pays to realize this fact and invest in the beaten down pharma scrips at current levels.

Indian Pharma companies like Nicholas Piramal, Orchid Chemicals, Jupiter Biosciences Ltd., Divi's Laboratories Ltd, Ind-

Swift Ltd. provide an impressive upside potential from their current levels.

Nicholas Piramal: It can turn out to be a wealth creator given its large basket of brands acquired as well as its global

business acquisitions, which will have a telling effect on its performance.

Orchids Chemicals: The growth rate recorded in its recent quarterly results indicates of things to come in the next few

quarters. It is bound to give good returns from the current levels.

Divi's Laboratories Ltd.: This young pharma company from Hyderabad is taking full advantage of CRAMS segment and

it can give even around 100% return to the investors from the current levels.

Ind-Swift Ltd.: With its new plants that were designed on a global scale, this company is expected to record impressive

growth rates in the next couple of years. It is currently available at a low of around Rs.32 only against Rs34.80 at which

price it was traded at the Sensex level of 5839 on 31-12-2003.

Jupiter Biosciences: It, too, seems to be under priced looking at the potential for its products in the post-patent regime.

However, in view of many angry responses from ardent readers (on its underperformance on the bourses for the last four

years), I do not wish to say more on this company at present and would like to keep my fingers crossed.

Picking such value stocks of high growth potential will be certainly more profitable than worrying about the market

fluctuations.

The market sentiment is still cautious

MARKET REVIEW

By Ashok D. Singh

The BSE Sensex lost 652.04 points or 3.42% to 18,361.66 for the week ended Friday, 25 January 2008. The NSE Nifty fell

321.95 points or 5.64% to 5,383.35. The Sensex gained on 2 out of the 5 trading sessions in the week, which proved to be as

the most eventful week on the stock markets. What started as a bloodbath on the street ended with a strong recovery.

Credit crisis in the USA and fears of a recession led to the bloodbath on domestic bourses at the onset of the week with

share prices falling like nine pins. Margin calls created havoc leading to a steep decline in share prices, which was initially

triggered by a setback in global markets and

selling by FIIs.

The US Federal Reserve came to the rescue of

the stock markets, cutting key US interest

rates by a steep 75 basis points to 3.5% late on

Tuesday, 22 January 2008, after Indian

markets had closed. The US central bank's

move followed two days of steep losses in

Asian and European equities on worries that a

deteriorating US economy that would drag

other regions down with it. The US economy

has been hit hard by rising defaults in the sub-

prime mortgages in which Americans with

bad credit records are struggling hard to pay

back housing loans. But a strong rebound on

the Indian bourses on Wednesday proved

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shortlived as the market lost ground again on Thursday. The market struck back with vengeance with the Sensex

registering a record gain and the first-ever four-digit single day gain on a closing basis.

The BSE Mid-Cap index plunged 872.59 points or 9.81% to 8,021.12 in the week. The BSE Small-Cap index lost 1,739.55

points or 14.3% to 10.420.90.

The market extended losses in highly volatile trades led by setback in stocks across the globe with Sensex declining

1408.35 points or 7.41% to 17,605.35, its biggest single-day point fall on a closing basis on Monday, 21 January 2008. The

Sensex hit a low of 16,951.50 in late-afternoon trade. At the day's low, the Sensex had declined 2062.22 points. Metal, Oil&

Gas and realty stocks were battered severely.

Market wide circuit filters were applied after an intra-day 10% fall occurred in key benchmark indices in minutes of

commencement of trade on Tuesday, 22 January 2008. Trading on the bourses was halted for one hour as the 10% market

wide circuit filters were applied after the sharp fall. Volatility was high after trading began at 10:55 IST. Sensex lost 875.41

points or 4.97% to 16,729.94 as margin calls created havoc on the bourses.

The market surged after a two-day rout with Sensex galloping 864.13 points or 5.17% to 17,594.07 on Wednesday, 23

January 2008 on speculation that more funds will move to emerging markets after an emergency 75 basis points

announced by the US Federal Reserve on Tuesday, 22 January 2008, after the Indian markets had closed. Despite the

sharp spurt, the market breadth was negative on BSE. Trading was choppy throughout the day. The market opened with

a spurt but immediately pared gains. It firmed up again in mid-morning trade supported by firm Asian markets. Banking

and financial shares surged on hopes of a rate cut from the Reserve Bank of India following the US Fed rate cut.

The market tumbled with BSE Sensex declining 372.33 points or 2.12% to 17,221.74 on Thursday, 24 January 2008 as

selling pressure emerged for index pivotals in the second half of the day. Nonetheless, it recovered some ground after a

massive fall in afternoon trade. The market breadth was weak. Earlier, the market had surged in opening trade tracking

rally in the Asian markets. The market breadth was quite weak. European markets were strong while majority of Asian

markets were trading higher.

Taking their cue from firm global markets, share prices surged with the Sensex registering its biggest ever single day rise

in absolute terms on a closing basis on Friday, 25 January 2008. The 30-share BSE Sensex rose 1158.85 points or 6.73% to

18380.59, its biggest gain in absolute terms on a closing basis. It was also the first-ever, four-digit single day gain for the

index. Stocks across the globe were buoyed by several factors including strong corporate sentiment in Germany and a

return of some confidence in the US economy after solid employment data and a congressional fiscal package. The Bush

administration's fiscal package includes $150 billion of tax rebates and business incentives meant to prevent a slowdown

in the country's economy.

Sensex lost 652.04 points to close at 18,361.66 last week. The market may further fall down from the current level. The

Q3FY08 results announced by corporate India, so far, have been more or less in line with market expectations. Any bad

news from US markets could mar the sentiment of investors after the recent slur on domestic markets. Market would be

closely looking at Q3 results of Maruti Suzuki India, SAIL, Mahindra & Mahindra, Bajaj Auto, Hindalco Industries and

ACC which are due this week.

The ongoing liquidity crunch in the secondary market caused by huge funds tied to the recently concluded mega Rs.11000

cr. IPO of Reliance Industries will continue till the time of allotment. Meanwhile, another mega IPO that of Emaar MGF

Land about 40% owned Dubai's Emaar Properties opens for bidding on 1 February 2008. The company will raise about

$1.8 billion from the IPO.

SEBI must investigate into market failure last week

MARKET

By G. S. Roongta

The mourning of Moharram on Saturday, 19

January 2008 seemed to continue last week as the market opened with a

downside gap of over 700 points on the Sensex on Monday, 21

January 2008 leaving investors, traders,

brokers, analysts and fund managers equally aghast. The fall of 1408.35 points on that day was the

highest ever recorded for a single day

G.S. Roongta

and earned it the sobriquet of 'Black Monday' replacing the earlier 'Black Monday', which now paled

into insignificance.

As if this was not enough, Tuesday, 22

January 2008 proved to be worse as the market crashed by over

10% in the opening few minutes and trading had to be suspended for an hour. Thus the bloodbath on the

first two days was nothing short of 'Khoon Ki Holi' as investors and traders were slain ruthlessly and

had no recourse to help whatsoever.

While corrections and consolidations are a natural outcome of any trading activity in a market, this kind of bloodbath is

extremely rare and never ever witnessed before on the bourses. Perhaps, its time that the stock exchange authorities

Page 9

perform some puja on both the exchanges to rid them of the demon 'Holika' that is symbolically burnt every Holi before

the festival of colour is celebrated.

On Monday, 21

January 2008, the Sensex tanked by over 2000 points from its previous close at 19,013.70 on Friday, 18

January 2008 and touched a low of 16,951.50 to close at 17,605.35 taking a toll of 1408 points creating history of the highest

ever loss on a single day, which is more than double the loss recorded on the previous 'Black Monday'. The slaughter, the

next day was nothing short of barbaric as stock prices continued to be battered leading to a 10% fall in the very first

minute of opening. Such was the scare that the Finance Minister, P. Chidambaram, could not inject any hope or

confidence by his comments on a TV channel that the Indian growth story was intact with a likely 8.5% growth in GDP on

the back of good tax collections in the third quarter encouraging performance in all sectors of the economy. As if to spite

him, the Sensex plunged 2273 points in intra-day trade that created a panic of a kind never witnessed before. All

marketmen ranging from small investors and day traders from large brokerages found themselves in trouble trying to

meet the demand for margin money.

Investors trading on brokerage terminals against the stock limits and overdraft facilities with banks against their shares

were found running from pillar to post to save their precious stock holding from being liquidated in the face of the

ruthless selling that had surfaced. But the brokers or the banks sold off their stocks to square up their positions to recover

the deficit in margin money. Not only did this hurt investors more but also brought down stocks to their bottoms.

There is not law in the country that can prevent such forceful squaring up of investors' wealth in stocks so suddenly and

ruthlessly without any notice. It worked like an earthquake or a cyclone that hit the unsuspecting investors and traders

who were forced to suffer and take a huge hit overnight. There seems to be no remedy to this situation and it can become

a vicious circle everytime the market suffers a sharp setback and investors are at the mercy of brokers, who in turn are at

the mercy of the banks or stocks exchanges while the banks remain at the mercy of the RBI and the stock exchanges at the

mercy of SEBI or the Ministry of Finance. Thus only the RBI or the Ministry of Finance could have helped investors face

this large scale payment problem to avoid any kind of default but there was no major help extended.

Payment problems and defaults occur in every business but it is for the regulatory bodies and governing authorities to

develop a mechanism to sort out such aberrations without dismantling the system or bringing trading to a halt. Only

when they fail to take a realistic view or remain indifferent the penalty is severe. The case is very similar to the farmers in

Maharashtra who were forced to commit suicide as they could not meet their financial commitment to their banks and

other creditors. It would be no surprise if a similar situation develops and investors/traders or brokers take this extreme

step. There are already reports of some marketmen suffering heart attacks after the shake out last week.

Readers may remember my strong observations about the madness for the Reliance Power issue and the equally

expensive issue of Future Capital Holdings both of which were sold on media hype than merit. But they cornered more

than Rs.2000 cr. most of which was sucked out of the secondary market as investors liquidated their holdings to apply for

these IPOs. This drying up of liquidity in the markets was one of the reasons for this big fall.

Taking a cue, FIIs, big operators and the bears seized the opportunity to offload stocks and take advantage of the

situation. It was a well devised gameplan to destabilize the market by the bears who were waiting for a favourable signal

for long. The global markets turning weak was the cue that they were seeking and the lack of liquidity with marketmen,

thanks to these two IPOs, provided the perfect opportunity. As a result, large baskets of stocks were unloaded without

any price limit to pull the market down to such levels that even the bulls cannot save their skins and the bears took charge

thereafter.

The US Federal Rate cut by 75 bps at one stroke also could not save the market as it fell back on Thursday, 24

January

2008 after witnessing a small recovery of about 500 points at the opening only to lose out later and fall by over 500 points

before closing at 17,221 with a loss of 372 points. On that day, the CNX Nifty lost 168 points to close at 5034.

Thus both the popular indices lost heavily over the past two weeks with the BSE shedding 4000 points and the Nifty 1323

points till Thursday, 24

January 2008. The recovery of 1139.92 points on the Sensex and 349.9 points on the Nifty on

Friday, 25

January 2008 was not very convincing as it was on very thin volumes. Most marketmen suspect another sharp

downward correction this week.

The episode of last week has once again proved that our markets cannot withstand the rigours of trading and can come to

a halt on severe trading pressure and leave thousands of common investors and traders helpless and totally at the mercy

of sharks often disguised as brokers who acquire these stocks at throwaway prices. SEBI and the exchange authorities

must examine and investigate the carnage last week and take to task the real culprits who were responsible for this

mayhem.

"The Budget has ceased to be the defining tool to wield economic policy"

FROM THE FUND MANAGER'S DESK

says Mr. Tushar Pradhan, Fund Manager, AIG Global Asset Management Company (India) Pvt. Ltd., in an exclusive

interview with Money Times (MT)

MT: What is your view on the market in the medium term?

Page 10

A: Predicting markets is always perilous and especially so for the short-term. However, a broad case can be made to say

that the benchmark index, the Sensex, is currently trading at about 19.5 times one year forward estimates of earnings on a

consensus basis. This does make it slightly higher in valuation than its historical average over the past 15 years. But is also

pertinent to point out that the economic scenario has much improved over what prevailed over the past 15 years. With

strong earnings momentum expected to continue, we believe that valuations while not cheap are not overly expensive on

an average. There are, of course, pockets of over-valuation; but the opportunities in the Indian markets are not restricted

to these. We do see considerable opportunities in the market beyond these handful expensive of stocks.

MT: This scheme focus is on the infrastructure sector as one of its core investment area? What is your view on the

prospects of this sector?

A: India has embarked upon an ambitious path of economic reform and has drawn out impressive plans of massive

infrastructure spend. The AIG Infrastructure and Economic Reform Fund is an open ended equity scheme that will invest

in companies that may benefit from potential investments in infrastructure and unfolding economic reform without

having any bias towards any sector or market capitalization range. The scheme will attempt to take advantage of the

opportunity in infrastructure by investing in companies that will either be recipients of orders into the infrastructure

spend or will be better positioned to take advantage of indirect opportunities as a fallout of the infrastructure spend. The

scheme will also invest in companies that will be beneficiaries of the reform process unleashed in recent years. Examples

of companies that have already benefited from the economic reforms process abound in the market such as in banking,

real estate, telecom etc. The scheme will try to focus on opportunities where such benefit is yet to flow through to such

companies, or on companies that may take advantage of further reforms as and when they occur in the economy.

MT: The other focus area of this scheme is companies in sectors that will benefit from the ongoing liberalisation in the

Indian economy including relaxation in foreign exchange controls, FDI in banking and financial services and any other

industry or sector where there is a trend to moving toward a freer market based model like retail, media and

entertainment, mining, etc. Kindly comment, briefly, on these five.

A: Banking – has already seen the first

phase of sweeping liberalization and has

already given us the first batch of

beneficiaries

adoption

the

Narasimhan

Committee

report

recommendations. Further adoption of

international best practices such as the

Basel II norms will throw up further

opportunities in this field. We believe that

the opening up of this sector in the near

future will lead to good investing

opportunities.

April – June 2007

EBG Quarterly Performance:

100% once again

During April – June 2007, which is the third quarter of the fourth year of

'Early Bird Gains' (EBG) – the investment newsletter that spots multi-

baggers, it has scored 100% success with all 15 recommendations

recording an appreciation.

EBG has, therefore, consistently, maintained quality while the bonus

issues in excess of 30% highlight the confidence of its recommendations.

Retail – With ownership rules having been

liberalized, the entire market in organised

retail is undergoing a significant change. As

time goes by, these retail chains will define

the way India shops. There will be a host of

companies that will take advantage of this

ongoing phase in the markets.

Issue

Dated

Scrip

Buy

Price

Highest

price since

recom.

Growth

04/04/07

Panama Petrochem

129.00

270

109

11/04/07

Rolta India

335.90

780

132

18/04/07

Metalman Industries

18.19

158

25/04/07

Media & entertainment – The ongoing

liberalisation will increase avenues to

exploit the nascent market in India for

media & entertainment services. Market

capitalisation

media

entertainment companies in India is a small

percentage compared to more developed

markets and this trend appears inexorable

in the longer term.

Mining – Award of mining leases, royalty

arrangements and linkages have opened up

great opportunities in this area.

MT: What is the risk reward ratio for

investors entering the sectors your scheme

is focusing on?

Indag Rubber

31.00

113

264

02/05/07

Paradyne Infotech

116.45

440

279

09/05/07

Pochiraju Inds. Ltd.

22.60

183

16/05/07

Asian Oilfield Services

73.95

446

503

23/05/07

Hanung Toys & Textiles

165.50

300

23/05/07

XL Telecom & Energy

119.30

595

400

30/05/07

Bharat Gears

73.00

06/06/07

Kanpur Plastipack

22.75

13/06/07

Deepak Fertilisers

89.30

178

13/06/07

MSP Steel & Power Ltd.

19.15

365

20/06/07

Bihar Tubes Ltd.

103.65

222

114

27/06/07

Astral Poly Technik Ltd.

105.00

235

123

EBG for sure profits

Page 11

A: With the visibility of spends in the infrastructure area a longer term allocation to these sectors will provide a

reasonable risk:reward scenario.

MT: What are your expectations from the budget and how do you think it will augur for the sectors your scheme is

focusing on?

A: Due to ongoing reforms in the country, the Budget has ceased to be the defining tool in the hands of the government to

wield economic policy. In many ways, the budget now is a statement of continuing commitment to reform than consisting

of dramatic statements of new intent. We believe that the economic agenda of the government will remain supportive of

the sectors that the scheme focuses on.

MT: Anything else that you may like to highlight for the investors?

A: We believe that a country goes through extraordinary growth once in its lifetime as is the case with India now as it

embarks on this journey in the near future. Investors should allocate a portion of their savings to participate in this

ongoing trend. However, each investor should understand that equity mutual funds are variable return products and that

they understand the longer term horizon implicit in the product. I would strongly advise investors to seek the advice of

qualified financial planners to build a comprehensive financial plan in accordance with their individual goals to decide on

the optimal allocation to mutual funds in general and equity mutual funds in particular.

- Devangi Bhuta

Mutual Funds & Market Mayhem

MUTUAL FUNDS

By Devangi Bhuta

Big ticket IPOs followed by unfavourable global cues saw the Indian markets in a free fall as the BSE Sensex plummeted

by 12.6% last week.

The free fall among the mutual funds has been more severe with Index funds correcting by around 15% while some of the

diversified equity schemes saw 20% erosion in NAV in the last one week. However, a few schemes that were

outperformers have managed to stay afloat i.e. fall lesser than the markets or their peers.

Standard Chartered Premier Equity Fund is one such scheme that has fallen by 11% in the last one month. Its objective is

to seek to generate long-term capital growth from an actively managed portfolio of predominantly equity and equity

related instruments. Its strategy is to acquire, small and medium size businesses with good long term potential that are

available at cheap valuations. At present, the company's portfolio is overweight on finance and industrial capital goods.

Its strategy appears to be buy and hold because of which the scheme is holding onto Exide Industries, Educomp

Solutions, Pantaloon India Retail and Suzlon Energy. Further, it appears to pick up good new companies that enter the

markets like Maytas Infrastructure and Jyothy Labs. With this strategy and a good track record, its prospects appear

promising although in view of the current market conditions, partial profit booking may be prudent.

Surprisingly, Reliance Regular Savings Fund- Equity option, where the objective is to earn capital appreciation and/or to

generate consistent returns by actively investing in equity and equity-related securities has also outperformed the

markets in the last one week. However, the scheme's strategy appears to play the momentum game as many stocks have

been bought and sold on short-term basis, which is not very inspiring.

On the other side, Sundaram BNP Paribas (SBNP) schemes have taken a severe beating in the last one week as many of its

schemes like Sundaram BNP Paribas India Leadership Fund, Sundaram BNP Paribas Rural India Fund, Sundaram BNP

Paribas Growth Fund and Sundaram BNP Paribas Select Focus, Sundaram BNP Paribas Select Midcap etc have dropped

by over 18% over the last one week, highlighting the higher risk these schemes entail.

So, what does this mean? Well, this highlights the risk of investing in Mutual Fund schemes.

• Schemes which have a consistent track record and have outperformed the markets may be considered.

• Sectors and stock concentration in mutual fund schemes should be carefully studied while investing.

• There may be some schemes that may have outperformed the markets only when it is on an uptrend but turned

and fallen more than the markets during a downturn. These are schemes where the risk is higher and investors

need to understand the downside before investing.

• Last but not the least, overall asset allocation holds the key to successful investing and by dividing one's portfolio

carefully amongst equity, debt and balanced schemes, the downside can be limited. Along with this, investments

in gold and Debt market instruments have to be given fair weightage. Momentary and monetary temptations

should not override diversification while asset allocations are made as it saves one from a week like the last one.

At present, investors may be better off booking partial profits in high risk schemes and wait on the sidelines till the

market turmoil settles down.

By Saarthi

STOCK WATCH

Page 12

KLG Systel Ltd. (Code: 531269) (Rs.789.25) specialises in providing technological solution for the entire business life cycle

i.e. right from concept and creation, through plant design, project execution and management operations and from

optimisation to expansion/revamp. It also provides on-line IT solutions to distribution utilities, using its self-developed

software Vidushi, SG61 Technology and solution for determining the transmission & distribution losses, fixing the areas

of power theft, on-the spot billing & cheque collection, increasing revenue collection efficiency of utilities and addressing

consumer grievances. It already serves 16 of the 44 power distribution companies across the country, which will

constitute more than 75% of its sales in a couple of years from 50% currently. On the other hand, to capitalise on its the

Engineering Services Outsourcing (ESO) potential, the company has gained engineering design domain-expertise in

various industry verticals and has ventured into planning, design and erection of large scale infrastructure projects in

India. Hence, it is aggressively bidding for EPC (Engineering procurement and commissioning) contracts and has recently

acquired 51% stake in Atlantis Lab Pvt. Ltd., a dedicated engineering solutions company. Further, it is looking for other

companies in aerospace for acquisition. For FY08, it may report a topline and bottomline of more than Rs.300 cr. and Rs.55

cr. respectively. This works out to an EPS of Rs.42 on its diluted equity (post FCCB conversion) of Rs.13.20 cr. For FY09,

however, it may register an EPS of Rs.55 on its fully diluted (post warrants conversion & ESOP) of Rs.14.50 cr.

Accumulate only at sharp declines.

*****

Selan Explorations Technology Ltd. (Code: 530075) (Rs.169.95) is involved in onshore drilling for exploration of oil and

gas and presently boasts of owning four oil fields Bakrol, Indrora, Lohar, Ognaj and one gas field Karjisan – all in and

around Ahmedabad, Gujarat. Incidentally, the company has been producing crude oil from three oilfields as the mining

lease for Ognaj oilfield is still awaited from the government of Gujarat. But its Bakrol field alone is stated to have oil/gas

reserves of around 45 million barrels, which is huge by any standard. However, due to limited funds and not so

aggressive management, the company produced only 1 lakh barrels of crude in FY07 and is expected to produce 140,000

barrels in FY08, which may move up to 2,00,000 barrels in FY09. With assured off-take of the entire oil & gas production

by the government, there is zero marketing risk. Secondly, with international crude oil prices expected to remain high, its

future earnings appear very encouraging. Although the company may report an EPS of Rs.11 for FY08, considering its oil

reserve, it is available at a fairly cheap valuation.

*****

KEI Industries Ltd. (Code: 517569) (Rs.89.10), the second largest power cable company in India is engaged in

manufacturing of high and low tension cables (HT and LT), control and instrumentation cables, house wires and stainless

steel wires. In the near future, it plans to manufacture Extra High Tension cables that will serve the modern power

transmission segment. It is also contemplating to move up the value chain from manufacturing and supplying cables to

executing EPC contracts and manufacturing and supplying transformers. Last week, the company started commercial

production at its new 100% EOU unit in Alwar - Rajasthan for manufacturing HT and LT power cables. Thus it has

increased its capacity by 10,000 kms taking its total cable manufacturing capacity to 50,000 kms per annum. The company

has already registered excellent performance for H1FY08 and may clock a turnover of Rs.900 cr. and PAT of Rs.58 cr. for

FY08. This translates into an EPS of Rs.7 on its fully diluted equity (post conversion of all FCCB) of around Rs.15.75 cr.

Considering its recent expansion and future growth plans, it is estimated to report an EPS of more than Rs.10 for FY09.

Despite the company having huge debt of Rs.310 cr., investors are advised to accumulate at sharp declines.

*****

Although small, Ram Informatics Ltd. (Code: 530951) (Rs.16.10) is a budding company in the e-governance space. It has

completed various IT projects for different divisions of the Government of Andhra Pradesh like computerized

administration of sales tax, tourism, state road transport corporation, AP Housing Board etc. Besides, the company has

designed, developed and maintains several government portals like BangaloreOne (Karnataka), eSuvidha (UP), iSetu

(Maharashtra), Eseva, Sales Tax and Fire Service (AP) etc. Recently, it got an order from the Karnataka Government for

executing 'Karnataka One' project, which is on BOOT model for a period of 7 years and the revenue model is based on a

transaction basis. Of late, it has also won a contract to implement and manage the `Bus Pass' automation system in the city

of Visakhapatnam, A.P. on a Build, Operate and Transfer (BOT) model for a period of 5 years. Few months back, the

company launched an insurance portal through which it intends to tap 2% - 5% of the agents of LIC for subscription to its

portal for a nominal price per year apart from generating income via hosting ads. On the other hand, it has developed

smart software products for automation in banking, insurance & retail. It is also into education & training and offers

courses for call centre training, corporate training etc. On the flip side, it has invested whopping Rs.32 cr. in its US

subsidiary called Aravali Technologies Inc., which has not yielded much returns.

By Kukku

FIFTY FIFTY

Note: (1) Most of the stocks discussed in this investment column are good on fundamentals. Investors are advised to stay

invested in all such stocks or even add the reactions for good long-term growth.

Page 13

(2) Market has fallen sharply due to the following reasons:

a) On FII selling for covering up sub prime losses.

b) Big IPOs, which sucked liquidity out of the market.

c) Traders & punters with high leveraged positions could not pay margins in time and most of brokers squared off their

positions. Since the leveraged positions were very high, the fall too was equally sharp and these traders have suffered

huge losses. It is understood that most gains that they had made in the last few years has been wiped out in no time.

The market is likely to remain volatile & may see better times if there is good reduction in interest rates and after the

refund of the Reliance Power oversubscription amount.

The market is likely to witness a better trend from the 2

week February 2008.

* In May 2006, the Sensex came down to 8900 from a high of 14500 and the Dow was 12000. Now we are at 18000 from a

high of 21000 but the Dow is still at 12000. This shows that we have outperformed the Dow Jones. It is very likely that we

may outperform it in future too.

* Weaker hands are out on this sharp reaction and stocks are to go into stronger hands. Stay invested in all good stocks.

* GTL Ltd.'s (Rs.268.05) net profit has flared up by 242.34% to Rs.33.72 cr. in Q3FY08 as against Rs.9.85 cr. during

Q3FY07. Sales rose 67.05% to Rs.362.23 cr. in Q3FY08 from against Rs.216.84 cr. during Q3FY07. Profit on sale of business

of Rs.142 million is also included in QE 31/12/07.

Investors are advised to stay invested in this stock for good targets over the next one year.

* PNB Gilts (Rs.34.75) is a safe bet on reaction at Rs.32.85 level as interest rates are expected to soften. The company has

reported encouraging results for the first three quarters of FY08. Net profit rose 67.88% to Rs.19.91 cr. for Q3FY08 as

against Rs.11.86 cr. in Q3FY07. Sales rose 62.35% to Rs.57.13 cr. in Q3FY08 from Rs.35.19 cr. in Q3FY07.

EPS for the first 9 months was Rs.3.8 and is likely to be around Rs.5.5 for full FY08. The company paid a good dividend of

25% for FY04, which was almost 33% of the average net profit. Going by this trend, it may declare around 18%-20% for

the current year, which is a very attractive dividend yield. Investors can keep accumulating this stock for good long term

growth. There is also a possibility of merger with PNB Bank.

The stock has reacted from a high of Rs.54 to the current level where the downside seems to be very limited.

* Indian Hume Pipes (Rs.879.10) - The Central and State governments are emphasising on infrastructure development

and water supply is a very important infrastructure activity for any populous location. For urban & rural water supply

projects the Public Health Engineering departments have always been the main customers of various State Governments

followed by Corporations, Municipalities, Water & Sewerage Boards, etc. There is huge potential for water supply,

sewage disposal, head works, treatment plants etc. Investors should stay invested. The company has 30 manufacturing

units some of which are closed but have huge real estate worth, which is a good trigger for the company.

The stock has reacted from its high of Rs.1489 to the current level of Rs.900 and looks attractive for long-term investment.

* Patel Integrated Logistics (Rs.74.65) has set a goal to be among the top 3 logistics providers in India. In line with its

strategy to capitalise on long-term growth, the company has embarked on a major growth plan to expand its fleet, add

warehouses, upgrade technology and improve on customer service. It has transformed itself from a mere trucking &

transportation company to becoming an 'Express Delivery' logistics Company by carving a niche for itself in the Express

Delivery Business under the Brand name

'Patel Retail'. Investors can add this stock

for a target price of Rs.175 over the next 18

months.

* Sterling Tools (Rs.80.60) has reported an

encouraging Q3FY08 results. Sales moved

up from Rs.37.4 cr. to Rs.41.6 cr. while net

profit improved to Rs.3 cr. from against

Rs.2.1 cr. Operating profit margin improved

in this quarter from 13.84% to Rs.17.2, which

is a very encouraging. Investors can

continue to hold this stock even add on

reactions.

FOR WEEKLY GAINS

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* MTNL (Rs.133.05) - On reaction, this stock

is available at almost its 52-week low. A

strong book value of Rs.184, good dividend

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around 12 compared to the industry average

P/E ratio of 37, makes it an attractive buy

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Page 14

* Gammon India (Rs.564.50) is attracting the attention of fund managers and large investors. Add it on reaction for good

long-term growth.

* Madhucon Projects (Rs.722.90) - New developments are said to be taking place. Stay invested for better targets.

* Gujarat Apollo Industries (Rs.259.75) is another company that is into machinery & equipments for road construction

and mining where the outlook is said to be very encouraging. Smart money is said to be accumulating this stock. The

stock has reacted from high of Rs.400 to Rs.235 now.

* The recent rights issue of Hind Oil Exploration (Rs.112.60) was at Rs.125 whereas the stock is quoting lower which

makes it is an attractive buy.

* Pratibha Industries (Rs.382.65) may see a good upside over the long run. Stay invested.

* Yuken (India) Ltd. (Rs.235) Q3 dispatches are less and it is expected that Q4 shall be much better. If the stock if reacts to

Rs.225/240 level, it is a good long-term buy. In this sector, investors should not compare quarter to quarter results.

* IFCI (Rs.62), Oswal Chemicals (Rs.42), Ion Exchange (Rs.234), Khoday India (Rs.212), Shreeram Mills (Rs.275),

Sharyans Resources (Rs.304), Nile Ltd. (Rs.220) are the other stocks attractively placed after the sharp reactions.

Investors can add or keep holding them.

By Nayan Patel

TECHNO FUNDA

Gandhi Special Tubes

BSE Code: 513108

Traded at NSE also as: GANDHITUBE

Last Close: Rs.227.60

This week's special is Gandhi Special Tubes (GST). This project was set up by the Gandhi group in Gujarat in April 1998

in technical collaboration with Benteler of Germany. Its association with GST has grown up in all directions.

Gandhi Special Tubes have also started producing tubular components like condenser coils & wires and have recently set

up a unit in Pune. This company has a manufacturing unit for cold formed tube nuts for fuel injection tube assemblies. It

has also given due importance to developing reliable quality systems and has been certified ISO\TS 16949: 2002 by M\S

TUV.

Company also is making small diameter welded steel nuts and cold drawn seamless steel tubes. Customers for both these

items are Godrej, Voltas, Electrolux, Carrier, TELCO, Ashok Leyland, M&M, TISCO, HMT, L&T, WIPRO, SAIL, BEML,

BHEL, Bajaj Auto, Maruti etc.

GST has a small equity of just Rs.7.35 cr., wherein the promoters' holding is 72%. Last year, the company made a profit of

Rs.12.87 cr. whereas the profit of the first nine month's of FY08 is Rs.14.02 cr.

Recently, it announced mind blowing December'07 quarterly results. Net sales jumped more then 50.28% in the

December'07 quarter while net profit jumped more then 97%. For the first nine months of the current year it recorded an

EPS of Rs.19.09 and declared 50% dividend and stock spilt into Rs.5 face value.

In the earlier week, the stock closed at Rs.231 but in the horrible last week it closed at Rs.227.60. Buy for short to long term

investment with stop loss of Rs.198. On the upper side, it will zoom to Rs.245, Rs.270 in the short-term and can go up to

Rs.350+ levels in the next 15 months. It is a great investment stock at current levels.

Steel Strips Wheels Ltd.

BSE Code: 513262

Traded at NSE also as: SSWL

Last Close: Rs.180

Mohali bases Steel Strips Wheels is engaged in auto ancillary. It has a small equity of just Rs.11.30 cr. wherein the

promoter's holding is 59%. Only 16.05% shares are with the public. GIC holds 3.54%, United Insurance holds 2.15% and

Merryl Lynch holds 4.48% stake in the company.

Recently, the company got an order to supply 13,75,000 steel wheel rims worth about $75 million from Europe's number 2

car company, PSA PE UGEOT CITROEN.

In the September'07 quarter, company's sales went up 39.21% and profit jumped 45.09%. Tata Steel's investment

company, Kalimati Investments has purchased 12 lakh shares of this company at Rs.170. The company's board will also

allot 3,47,663 warrants to its 1company's managing director at Rs.170.

Company's future looks very bright. In the previous week, the stock closed at Rs.188.70 and last week closed at Rs.180,

which may be the bottom level for this stock. Buy for investment with a stop loss of Rs.165. On the upper side, it will go

up to Rs.201 in short time and Rs.260 level in the next 4-5 months.

Wockhardt Hospitals IPO opens on 31

January

MONEY FOLIO

Page 15

Wockhardt Hospitals Ltd., one of the largest private healthcare services companies is entering the capital market with its

IPO of 25,087,097 equity shares of Rs.10 each through a 100% book-building process in the price band of Rs.280 and Rs.310

per equity share. The issue will open on Thursday, 31

January and close on Tuesday, 5

February 2008. This issue will be

listed in the BSE and NSE.

Part of the Wockhardt group, a Pharmaceutical and Biotechnology company, Wockhardt Hospitals Ltd. has a super-

specialty focus on areas such as cardiology and cardiac surgery, orthopedics, neurology, neuro-surgery, urology &

nephrology and critical care, it specializes in minimally invasive surgery. It has pan-India presence with a network of ten

super-specialty hospitals and five regional specialty intensive care unit (ICU) hospitals providing healthcare services in

western, southern and eastern India. These ICU hospitals act as referral centres and the first point of critical care for the

larger super-specialty hospitals and are also self-sustaining as they are strategically located to fulfill the demand for basic

tertiary care and higher secondary care.

Wockhardt Hospitals is the only private hospital group associate of Harvard Medical International, a self-supporting not-

for-profit subsidiary of Harvard Medical School and its super-specialty hospital in Mumbai has received international

accreditation from Joint Commission International, the largest accreditor of healthcare organisations in the United States.

The company intends to utilize the proceeds from the issue to meet the cost of development and construction of

greenfield and brownfield hospitals of the company, prepay some of the short-term loans and to meet general corporate

expenses.

SVEC Constructions plans IPO

Hyderabad based SVEC Constructions Ltd., which is engaged in civil and related electrical and mechanical construction

works with the government, semi-government and private bodies, plans to issue 40,00,000 equity shares of Rs.10 each

through the book-building process in the price band of Rs.85 to Rs.95 per share.

The issue will be open for subscription between Monday, 4

February and Friday, 8

February 2008 and is being made to

help fund the company's purchase capital equipment worth Rs.15.32 cr. and to meet its requirement of Rs.23.86 cr. long-

term working capital apart from meeting the IPO expenses.

Emaar MGF Land IPO opens on 1

February

Emaar MGF Land Ltd., a joint venture between a global real estate company, Emaar Properties PJSC of Dubai, and MGF

Development Ltd. from India, is entering the capital market with an IPO of 102,570,623 equity shares of face value Rs.10

each for cash at a price to be determined through a 100% book building issue in the price band of Rs.610 and Rs.690 per

equity share. The Bid/Issue will open for subscription on Friday, 1

February and will close on Wednesday, 6

February

2008. The Issue has been assigned an IPO grading of 4/5 by CARE, a credit rating agency, which indicates it 'Above

Average' fundamentals.

Emaar MGF commenced in India in February 2005. Its primary business is the development of properties in the

residential, commercial, retail and hospitality sectors. In addition, it has also identified healthcare, education and

infrastructure as business lines for future growth. Its operations span across various aspects of real estate development,

such as land identification and acquisition, project planning, designing, marketing and execution.

As of 31

December 2007, the company had land reserves across India admeasuring to approximately 13,024 acres out of

which it has development plans for approximately 12,028 acres, which in turn, is expected to provide it with a proposed

saleable area of approximately 566 million sq. ft. The company estimates that its land reserves will provide it with a

proposed saleable area of approximately 136.5 million sq. ft. of plotted residential development (including built up villas);

318.8 million sq. ft. of built up residential properties; 88.9 million sq. ft. of commercial properties; 18.0 million sq. ft. of

retail properties; and 4,960 keys in hospitality properties as of 31

December 2007.

The issue proceeds will be used for part payment towards the acquisition of land and land development rights and

related approvals for its ongoing and planned projects. The Issue proceeds will also be used for the development and

construction costs for project Palm Drive in Gurgaon. Palm Drive is a high quality residential development designed for

contemporary living in a green sanctuary setting and is expected to include amenities such as a clubhouse, health club

and parks. The development is within 20 kilometres of Delhi's international airport.

For H1FY08, its consolidated total income was Rs.501.74 cr. with consolidated net profit was Rs.129.83 cr.

IRB Infrastructure Developers IPO opens on 31

January

IRB Infrastructure Developers Ltd. (IRB), an infrastructure and construction company with extensive experience in the

roads and highways sector and currently involved in 12 BOT projects in this sector, proposes to enter the capital markets

with an IPO of 5,10,57,666 equity shares of Rs.10 each through 100% book building process in the price band of Rs.185 to

Rs.220 per equity share. The issue will open on Thursday, 31

January and close on Tuesday, 5

January 2008 and will be

Page 16

listed on the BSE and NSE. The IPO has been graded 4/5 by Fitch Ratings, a credit rating agency, indicating that the

fundamentals of the issue are above average.

IRB is currently involved in 12 BOT projects in the roads and highways sector. Out of these projects, 11 projects are in the

operational phase, i.e., engineering, procurement and construction phases have been completed on these projects and the

project SPVs are currently earning revenues from toll collection under the relevant concession agreements.

IRB has recently diversified into the real estate development sector and it is in the process of acquiring land in the Pune

district in Maharashtra on which it proposes to develop an integrated township. The proposed township project is in its

preliminary stages of planning and development and will be its first real estate development project. Currently, the

company's land reserves consist of approximately 925 acres of land in the Mauje Taje and Mauje Pimploli Taluka in Pune

district, and it intends to acquire an additional approximately 475 acres of land for its proposed township project.

The company proposes to utilize the net proceeds of the Issue for investment in subsidiary IDAA; prepayment and

repayment of existing loans of the company and the subsidiaries Aryan Toll Road Pvt. Ltd, Modern Road Makers Pvt.

Ltd, Thane Ghodbunder Toll Road Pvt. Ltd, NKT Road & Toll Pvt. Ltd and Mhaiskar Infrastructure Pvt. Ltd.

For FY07, its consolidated total income was Rs.325.08 cr. with consolidated net profit of Rs.29.96 cr. In the 5 months ended

August 2007, consolidated total income was Rs.285.26 cr. with net profit of Rs.36.38 cr.

Bang Overseas IPO opens on 28

January

Bang Overseas Ltd. (BOL), a provider of fashion fabrics and ready-to-wear requirements in apparel, textile and retail

segment, is entering the capital market with an IPO of 3,500,000 equity shares of Rs.10 each at a price to be decided

through a 100% book-building process in the price band of Rs.200 and Rs.207 per equity share. The Bid/Issue will open

for subscription on Monday, 28

January and close on Thursday, 31

January 2008. The issue has been graded 2/5 by

CARE indicating below average fundamentals.

Incorporated in 1992, BOL has two apparel manufacturing units in Bangalore. Its ready-to-wear men's garments are sold

under the brand name 'Thomas Scott' since 2002. It has an installed capacity of 720,000 and 540,000 pieces per annum at

its two units namely Reunion Clothing Company and Formal Clothing Company respectively. Its products are presently

retailed through 157 points of sale comprising its own retail outlets large format stores and multi-brand outlets.

The proceeds from the proposed issue are to be deployed for setting up retail outlets across India; brand building; a new

apparel manufacturing unit of 6 lakh pieces per month; warehousing and logistics facilities; general and corporate

purposes and to meet issue expenses.

For FY07, it reported an income of Rs.996 cr. with PAT of Rs.107 cr. and for H1FY08 its income was Rs.651 cr. with PAT of

Rs.70 cr.

Manjushree Extrusion FPO opens on 31

January

Manjushree Extrusion's Ltd. (MEL) is entering the capital market with a Rights-cum-Follow on Public Offer of equity

shares at Rs.30 per share aggregating to Rs.35.70 cr. The Rights Issue has already opened on 7

January 2008, while the

Follow on Public Offer will open on Thursday, 31

January and both the issues will simultaneously close on Wednesday,

February 2008.

The 1:1 Rights Issue comprises of 42,10,800 equity shares of Rs.10 each for cash at a premium of Rs.20 per share

aggregating to Rs.12.63 cr. offered to the existing equity shareholders the Follow on Public Offer will comprise of

51,26,100 equity shares of Rs10 each for cash at a premium of Rs.35 per share aggregating to Rs.23.07 cr. The IPO has been

graded 2/5 indicating its below average fundamentals.

The fund being raised through the composite issue has proposed to utilize to part finance the company's expansion cum

diversification project at a cost of Rs.53.70 cr., which is presently under implementation. A term loan of Rs.18 cr. has been

sanctioned by SBI for the project.

MEL provides packaging solutions through manufacture of Speciality Plastic Packaging products for MNCs in FMCG,

Pharma, Food Processing and Agrochemical sectors with whom it enjoys 'preferred supplier' status. The products include

injection/Blow moulded PET/PP and multilayer plastic containers that are being manufactured by employing Japanese

and European technologies. The major clients of the company include Hindustan Unilever, Nestle, Cadbury, Britannia,

Glaxo SmithKline, P&G, Coca Cola, Tata Tea, Godrej, Wrigley's, Hershey's, Heinz, Pepsi, UB Group, Henkel etc. besides

exports to customers in South Africa and Middle East countries.

Manjushree registered 22% higher turnover of Rs.80 cr. for FY07 with PAT of Rs.2.82 cr. and an EPS of Rs.6.70. For

H1FY08, it registered a turnover of Rs.38 cr. with PAT of Rs.1.86 cr. The EPS after exceptional items for H1FY08 stood at

Rs.4.42.

Manjushree is currently listed on Ahmedabad, Calcutta and Guhati stock exchanges and now proposes to list the existing

shares as well as the new shares under the issue on the BSE and NSE.

Page 17

MCX to support computer literacy in rural Maharashtra

Multi Commodity Exchange of India Ltd. (MCX) has announced its support to an ongoing computer literacy programme

of Microsoft and Indian Society of Agribusiness Professionals (ISAP) in rural Maharashtra.

This marks the launch of MCX's Corporate Social Responsibility (CSR) initiative aimed at empowering the youth and

women of rural areas of the state with technology skills. Till now, over 15,500 people have been trained and over 24,000

people are using this service across 16 districts by understanding the futures markets prices of the area specific

commodities.

KKCL Q3 net up by 41%

Kewal Kiran Clothing Ltd. (KKCL), promoters of K-Lounge Stores and Killer, Pg3 Lawman, Integriti and Easies brand of

apparel has reported an impressive quarter. Total revenue for the quarter was 35% higher at Rs.42.75 cr. (Rs.31.56 cr.) and

PAT was 41% higher at Rs.5.09 cr. (Rs.3.62 cr.). EBITDA margin for the quarter was higher at 22.04% (19.90%) while the

net profit margin improved to 11.91% (11.47%) leading to a Basic & Diluted EPS for the quarter of Rs.4.13 and Cash EPS of

Rs.4.98.

During the quarter under review, KKCL manufactured about 0.82 million pieces and sold about 0.72 million garments.

For the nine months period ending December 31, 2007, it manufactured 2.18 million pieces and sold about 2.17 million

garments.

Net realization per garment for the nine months period on a wholesale basis was Rs.572 (Rs.551) & retail realization per

garment was Rs.978 (Rs.932) - an increase in realization of 3.81% on wholesale and 4.94% on retail basis respectively.

BoI Q3 net up by 101%

For Q3FT08, Bank of India (BoI) recorded deposit growth of 27.40% on YoY basis to touch Rs.1,35,835 cr. Advances grew

by 29.90% to Rs.1,03,657 cr. and the business mix was up by 28.50% and touched Rs.2,40,0000 cr. on YoY basis.

The operating profit for the quarter was up by 75.6% to Rs.971 cr. Core operating profit (net of treasury) went up by

71.70% from Rs.498 cr. to Rs.855 cr. while the net profit shot up by 101% from Rs.255 cr. to over Rs.512 cr.

The bank's NIM improved from 3% to 3.14% while net interest income increased by 25.61%. Non-interest income

(including treasury) was up 72% from Rs.322 cr. to Rs.554 cr. Non-interest income (net of treasury) was up 64% from

Rs.267 cr. to Rs.438 cr. and fee based income increased 46% from Rs.187 cr. to Rs.273 cr.

The bank's gross NPA has come down from 2.74% to 1.90% and net NPA is reduced from 1.14% to 0.62% during the year.

EPS for 9 months (not annualized) is up 85% at Rs.25.69 from Rs.13.86.

Bank of Maharashtra's Q3 net up by 35%

Q3FY08 net profit of Bank of Maharashtra increased 35% to Rs.100.38. cr. as against Rs.74.32 cr. Q3FY07.

Operating profit was flat at Rs.172.51 cr. against Rs.171.34 cr. in Q3FY07 despite additional outgo on IT expenditure, an

initiative taken by the Bank last year by introducing core banking solution.

Total income for the quarter increased by 28.83% to Rs.985.97 cr. from Rs.765.30 cr. during Q3FY07. The interest spread

increased from Rs.268.74 cr. to Rs.300.61 cr. registering growth of 11.86%.

Its total business grew 27% to Rs.65,690 cr. As on 31

December 2007, total deposits stood at Rs.38,275 cr. as against

Rs.30,766 cr. as on 31

December 2006 recording a growth of 24.41%. During the quarter, the bank has added 2.07 lakh

new accounts to its fold.

Dena Bank Q3 net up by 43%

Dena Bank reported 43.3% higher Net Profit at Rs.101.70 cr. for Q3FY08 with 19 bps at 1.17% higher Return on Assets

(annualized) and Rs.3.52 (not annualized) EPS.

Its Capital Adequacy Ratio was 11.26%. Deposits grew by 20.80% to Rs.30,389 cr. while Gross Credit was up by 23.53% at

Rs.21,255 cr. leading to 21.90% growth of Business Mix at Rs.52,095 cr.

Net Interest Income (NII) was up by 5.18% while the Gross NPA Ratio was down by 190 bps at 3.09% and the Net NPA

Ratio was down by 106 bps at 1.41%.

Union Bank net up by 42.6%

Union Bank of India reported 36.5% higher Operating Profit at Rs.636 cr. for Q3FY08 from Rs.466 cr. in Q3FY07. Net Profit

was up by 42.6% to Rs.365 cr. for Q3FY08 from Rs.256 cr. in Q3FY07.

Net Interest Income was up by 15% at Rs.789 cr. for the quarter from Rs.686 cr. in Q3FY07 while Non-Interest Income

grew 109% to Rs.347 cr. in Q3FY08 from Rs.166 cr. in Q3FY07.

Page 18

The Business Mix of the bank grew by 27.94% (YoY) to Rs.1,73,478 cr. as on 31

December 2007 from Rs.1,35,595 cr. on 31

December 2006 and despite rising cost of raising resources, Net Interest Margin (NIM) for the 9 months ended 31

December 2007 has been maintained at 2.89%. Capital Adequacy Ratio stood at 13.03% as against 13.21% in the previous

year. Net Worth of the bank posted a smart rise to Rs.5592 cr. as of 31

December 2007 from Rs.4616 cr. of 31

December

2006 due to plough back of profits while the Return on Average Assets improved from 1.12% in December 2006 to 1.31%

in December 2007 (QoQ) indicating more efficient utilization of assets.

Its asset quality improved significantly with a steep reduction in Net NPAs from 1.12% in December 2006 to 0.35% in

December 2007.

Quantum MF launches Quantum Gold Fund

Quantum Mutual Fund has launched Quantum Gold Fund is an open ended Exchange Traded Fund, which is proposed

to be listed on the NSE, closely tracking the domestic prices of gold.

The Fund seeks to offer investors an innovative, cost-efficient and secure way to invest in gold. Quantum Gold Fund

enables investors to buy gold without the hassles of holding and storing physical gold. It will closely track, before

expenses, the movement in the price of the underlying asset - physical gold of 0.995 fineness.

It would be the first Gold ETF in the country without any entry load during the NFO. The NFO opened on Thursday, 24

January and will close on Friday, 8

February 2008.

HSBC Investments launches HSBC Emerging Markets Fund

HSBC Investments has launched HSBC Emerging Markets Fund (HEMF), an open-ended scheme that seeks to provide

long-term capital growth by investing in emerging economies, which offer high growth rates, increasing profitability,

reduced risks and attractive valuations.

The fund would invest both within and outside India. Examples of some countries that the fund may seek to invest in are

China, Russia, Indonesia, South Korea, Brazil, Mexico and many more. Indian investors can thus not only capture growth

opportunities outside the country but may also spread their risk by diversifying their investments across geographical

markets instead of staying invested in one particular country.

HEMF can invest up to 100% of its assets in overseas markets. The fund may also invest a limited proportion in domestic

debt and money market instruments in case equity markets are considered unfavourable.

Emerging markets are expected to be drivers of the world economy in the years to come. Emerging markets are backed by

continuing improvement in economic fundamentals and abundant human & natural resources and also display a great

degree of diversity.

PLASTINDIA 2009 on 4

to 9

February

PLASTINDIA 2009, the 7

International Plastics Exhibition will be held from 4

to 9

February 2009 at Pragati Maidan,

New Delhi. PLASTINDIA Foundation is the apex body of major associations, organizations and institutions, including

Government & semi government organizations associated with plastics. The Foundation's main objective is to promote

the development and growth of the Indian Plastics Industry in India and is dedicated to national progress through

plastics.

PLASTINDIA 2009 may surpass the splendour and achievements of its previous version said Shri Bhavarlal Jain, the

industrialist who pioneered drip water irrigation revolution in India.

Piaggio to enter two-wheeler market

The Piaggio Group plans to enter into two-wheeler production and marketing in India by end 2009 or 2010.

The group would begin the European marketing of thermo-electric hybrid scooters by the end of 2008 – the world's first

large-scale application of this technology in the scooter industry.

Disclaimer: Investment recommendations made in Money Times are for information purposes only and derived from sources

that are deemed to be reliable but their accuracy and completeness are not guaranteed. Money Times or the analyst/writer does

not accept any liability for the use of this column for the buying or selling of securities. Readers of this column who buy or sell

securities based on the information in this column are solely responsible for their actions. The author, his company or his

acquaintances may/may not have positions in the above mentioned scrip.

Page 19

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Money Times Jan. 28 – Feb. 3, 2008

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