CASH available...????

Govt makes 2010 record year for public floats BS Reporter / Mumbai December 25, 2010, 0:40 IST 59 firms launch IPOs in 2010 to raise a total of Rs 36,017 crore. With the government tapping the capital market at regular intervals, 2010 proved to be a record year in terms of money mobilised through initial public offers (IPOs) and follow-on offers (FPOs).The year saw Rs 67,595 crore being raised from the primary market, the highest ever in a calendar year. According to PRIME Database, 59 companies launched IPOs in 2010 to raise a total of Rs 36,017.4 crore, more than the earlier record of Rs 34,179.1 crore in 2007. The year saw 100 unlisted companies entering the capital market. Investment bankers said the mood was buoyant as a number of fundamentally good companies entered the market and there was enough demand from investors. “Investors are always ready to back good quality companies that are appropriately priced,” says A Murugappan, executive director, ICICI Securities. “If an issue is fundamentally driven and backed by a good story, there are enough takers. One needs to remember that investors are sensitive to valuations. I also expect India allocations (of foreign institutional investors) to go up in the coming year.” The year also saw India’s largest-ever IPO hit the market. Public sector heavyweight Coal India raised Rs 15,199.44 crore through a primary offering in October. In all, there were 14 issues (IPOs and FPOs) with a size of more than Rs 1,000 crore each. The year was also witness to the country’s first issue of Indian Depository Receipts, when Standard Chartered Plc entered the market with an issue of nearly Rs 2,500 crore. Between all the mega issues, there were 19 offerings with an issue size of less than Rs 100 crore. Gravita India, Sea TV Networks, Talwalkar Fitness, Technofab Engineering, Bedmutha Industries and Thangamayil Jewellery were among the smaller companies that listed on the bourses. FPO high While IPOs touched a new high, FPOs created a record too. The year saw eight FPOs collectively mopping up a record Rs 31,577.25 crore, nearly twice the earlier record. It is also more than the cumulative amount raised through FPOs in the previous five years. The earlier record was Rs 17,389.4 crore raised in 2004. Six government-owned companies and a couple of private entities launched their FPOs this year. The two largest FPOs during the year, of NTPC and REC, were also those that experimented with the auction mechanism approved by the market regulator early this year. In this system, an issuer has to announce only a floor price (instead of a price band) and institutional investors can bid at any price above this. Retail investors can bid at the floor price. THANKS TO BUSINESS-STANDARD ------------------------------------------------------------------------------------------ So long as the Govt. makes the IPO or FPO on regular basis, the markets likely to float above 5800 level.The major follow-up action at the high value profit generating stocks on block, the FII and the investors maintains the premium in the market. The only concern of the market players and the possible threat to the Govt is the SURVIVAL. The scams and rising of bare minimum food prices like Aloo and Onions and unveiling sugar price rise. The essential commodity price rise in BJP regime gave power to Congress and now it is likely that the developments are favouring the opposition.

THE POSITIVE SIGNS....

 THE POSITIVE NEWS IS THE HOPE TO THE BULLS AS THE ECONOMY IS DOING GOOD AND THE GOING ALSO GOOD........THE NIFTY 20% RISE FROM THESE LEVELS IS 7200+...EVERY THING NOW LOOKS ROSY AS WE ARE LOOKING THE POSITIVE SIDE.......????????

BSE Sensex seen rising 20 percent by end-2011 - poll

On Friday 24 December 2010, 11:44 PM

By Sumeet Chatterjee and Devidutta Tripathy

MUMBAI (Reuters) - The BSE Sensex is likely to rise nearly 20 percent by the end of next year, as a fast-growing economy and strong corporate earnings boost overseas portfolio inflows, a Reuters poll found.

The main 30-share Bombay Stock Exchange index will rise to 23,350 by end-2011 from close of 19,696.48 on December 8, according to the median response from 18 market participants, which include investment banks and brokerage firms.

The index in Asia's third-largest economy should rise 12 percent by mid-2011 to 22,000, the poll taken over the past week showed, higher than the 21,500 level seen in a September poll.

"The optimism on economic growth forecast, hopes of good earnings would continue to attract investors to India," said Neeraj Dewan, a director at brokerage Quantum Securities in New Delhi.

India, a member of the BRIC group of rapidly developing countries, is forecast to see economic growth of almost 9 percent in this fiscal year to March, with it accelerating further in following years, levels rivalled only by China.

Hopes of strong economic growth in India have led foreign funds to pump more than $29 billion into Indian equities so far in 2010, the highest ever, on top of the $17.5 billion purchased last year.

The overseas inflows have driven the main index almost 13 percent higher this year. Russia 's benchmark RTS index is up 11 percent this year, while Brazil is up about 1 percent and China is down 13 percent.

"They have poured in huge money this year. They might not match the same inflow next year, but a pullout is not likely," Quantum Securities Dewan said, referring to foreign institutional investors.

Analysts said that foreign investments in Indian shares were unlikely to be severely impacted by a string of corruption scandals that the government is currently mired in, though it could impact sentiment in the near term.

"The scandals will have a short-term sentiment impact and there will be greater scrutiny of corporate governance issues, but in the long run investors will focus on economy and company earnings," R.K. Gupta, fund manager at Taurus Mutual Fund, said.

Seven out of eight respondents in the poll said they did not think the current scandals would tarnish India's image as an investment destination.

PREMIUM VALUATION

Surging interest rates and global economic uncertainties as Europe struggles to contain its debt crisis are likely to be the main concerns for the Indian markets in the year ahead, analysts said.

The Mumbai stock index rose 81 percent in 2009 after the economy was spared the worst of the global economic downturn. It had posted its worst yearly loss in 2008, when it slumped by more than half.

The forecast for the BSE's Sensex index at the end of 2011 ranged from 17,500 to 26,600.

The index trades at 18.9 times forward earnings, higher than China's Shanghai Composite Index that trades at 15.4 times and Japan 's 16.9 percent.

(Additional reporting by Ami Shah; Polling by Bangalore Polling Unit; Editing by Jon Loades-Carter)

THANKS TO THE TEAM ......