| Thursday, August 24, 2006 |
| INDIAN FOOD PROCESSING SECTOR |
THE MINISTRY OF FOOD PROCESSING ESTIMATES THE SIZE OF FOOD PROCESSING AT RS 3150BN.THE FOOD PROCESSING INDUSTRY IS EXPECTED TO GROW AT 9-12% ON THE BASIS
OF ESTIMATED G.D.P GROWTH RATE OF 6-8% DURING THE TENTH PLAN PERIOD,VALUE
ADDITION OF FOOD PRODUCTS IS EXPECTED TO INCREASE FROM CURRENT 8-35% BY THE
END OF 2025.THE INDUSTRY EMPLOYS 1.6MILLION WORKERS DIRECTLY.THE NUMBER OF
PEOPLE EMPLOYED BY INDUSTRY IS PROJECTED TO GROW TO 37MN DIRECT AND INDIRECT
JOB WORKERS BY 2025.THE TOTAL EXPORTS OF FOOD PROCESSING INDUSTRY IN 2001-2002
WERE RS 136BN AND THE TARGET EXPORT IN 2002-2003 WAS AT RS 146BN,MARINE
PRODUCT WAS SINGLE LARGEST CONSTITUENT OF THE TOTAL EXPORTS OF PROCESSED
FOOD CONTRIBUTING OVER 40% OF TOTAL FOOD PROCESSED EXPORTS
FIVE YEAR TAX BENEFITS FOR NEW FOOD PROCESSING UNITS IN FRUITS AND VEGETABLES
PROCESSING ALONG WITH OTHER BENEFITS IN THE BUDGET 2004 2005 HAS BOLSTERED
GOVERNMENT RESOLUTION OF ENCOURAGING GROWTH IN THIS SECTOR
INDIA IS THE LARGEST PRODUCER OF MILK IN THE WORLD WITH ESTIMATED PRODUCTION
OF 91MN TONS IN THE YEAR 2002-2003,MILK AND MILK PRODUCTS ACCOUNT FOR SIGNIFICANT 17% OF INDIAS TOTAL EXPENDITURE ON FOOD AND POPULAR MILK PRODUCTS ARE CHEESE ,BUTTER,GHEE,DAIRY WHITENERS AND ICE-CREAM
THE INDIAN SNACK MARKET COMPRISING OF BAKERY PRODUCTS,READY TO MIXES,CURRY,CHIPS,NAMKEEN AND OTHER PROCESSED FOODS IS LARGE DIVERSIFIED
AND DOMINATED BY UNORGANIZED SECTOR.THE TOTAL SIZE OF INDIAN SNACK MARKET
IS ESTIMATED OVER 400000 TONS IN VOLUME TERMS AND R.S100BN IN VALUE TERMS AND
GROWING OVER 10% FOR LAST THREE YEARS.THE THREE LARGEST CATEGORIES OF PACKED FOODS ARE BISCUITS,SOFT-DRINKS AND PACKED TEA. |
posted by KIRAN RAJUSTH @ 8:30 PM   |
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| TOURISM SECTOR |
Starting with slow growth at the start of millennium, the indian tourism industry has performed quite well in last few years. The tourism industry has out-performed global tourism industry both in terms of volume growth and revenue.
India along with china have been rated as one of the fastest growing tourist destination for next 10 years. The main reason for rapid growth in tourism is indias fast growing economy, despite lagging behind in basic infrastructure, Indian tourism has been showing double digit growth, Inorder to sustain this growth it is essential for government of india to invest in basic infrastructure such as transport system.
The expected growth of the industry in future has provided its players with an opportunity to invest in new technology and latest security system. The indian tourism sector should also try and venture into other segments like cruise tourism where india has negligible presence when compared with other countries. On the flip side the growth in indian tourism sector is accompanied by imminent destruction of local ecology and increase in pollution which in the long run is going to negatively impact this sector. |
| posted by KIRAN RAJUSTH @ 6:15 PM |
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| Wednesday, August 23, 2006 |
| TEXTILE AND HANDLOOM SECTOR |
Indian handloom sector provides jobs to more than 50 lac weavers, handloom sector is the back bone of indian economy, second only to agriculture. Despite the presence of powerloom sector in big way along with all its advantages, the handloom sector has been able to with stand the competition.
with the help of centres financial assistance and implementation of various schemes has brought about more than ten fold increase in the production of handloom fabrics.This sector contributes nearly 30% of total cloth produced in the country.
The handloom act passed by parliament in 1985 aims to shield handloom weavers against powerloom and textile mill operators by reserving certain textile article for exclusive production by handloom.
Handlooms are part of indian heritage, they indicate the richness and diversify of culture. The indian textile sector is also foreign export earner, accounting for 40% of gross export
earnings in trade. Trade restriction had kept textile industry from rising to dizzy heights. but all has changed from january 2005.
Quota based restriction for textile exports to U.S and other EUROPEAN countries were lifted from january 1st 2005. The indian textile industry now has got opportunity to realise its full potential and the sector can achieve exports to the tune of $70 billion by 2012.
Since the quota has been removed and globalisation in full swing, the market is now exposed to global competition. Indian exporters have now to compete with global players and face tariff and non-tariff barriers, with good quality and cheap labour this industry can reach to new highs. |
| posted by KIRAN RAJUSTH @ 8:00 PM |
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| PHARMACEUTICAL SECTOR |
It is often said that pharma sector has no cyclical factor attached to it, irrespective of whether economy is in upmove or downmove, the general belief is that the demand for
drugs is going to increase.
India with huge population is largely untapped market per capita expenditure on health care in india is US$ 98, while the same for countries like Brazil it is US$470.
Indian manufacturers are lowest cost producers of drugs in the world. The sector has got
excellent chemistry, this adds to competitive advantage of indian companies.The strength
in chemistry skill help indian companies to develop processes which are cost effective.
Indian pharma sector has been marred by lack of product patent, which prevents global
pharma companies to introduce new drugs in the country, but this has provided upper hand to the companies.
Indian pharma market is one of the least penetrated in the world, indian majors are depending on exports for the growth.
Indian pharma sector is highly fragmented with about 400 large manufacturing units and
about 20000 small units spread across the country, this makes indian pharma sector
competitive.
The migration into product patent regime is likely to transform industry fortunes in long
term.The new product patent regime will bring with it new innovation drugs, this will
increase the margin of MNC pharma companies and will force domestic pharma companies to focus on R&D, this would result in consolidation as well.
large number of drugs going off patent in europe and u.s.a between 2005 and 2009 offer
big opportunity for indian companies to tap this market.
Opening up of health insurance sector and expected growth in per capita income are key
growth drivers from long term perspective.
Being lowest cost producer of drugs along with FDA approved plants, indian companies
can become global out-sourcing hub for pharmaceutical products. |
| posted by KIRAN RAJUSTH @ 11:50 AM |
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| Sunday, August 20, 2006 |
| BATA INDIA L.T.D |
 BATA INDIA:
CURRENT PRICE: 207 R.s
TECHNICAL VIEW: SCRIPT SUGGESTED FOR INVESTMENT IS BATA INDIA . THE UPTREND STARTED FROM 14 TH JUNE IS INTACT, ANY SHORT TERM DECLINE SHOULD BE USED FOR ENTRY PURPOSE. THE UPTREND WILL TERMINATE ONLY IF IT CLOSES BELOW 175 .THE MOVING AVERAGES ARE RISING AND SHOULD PROVIDE SUPPORT INCASE OF DECLINE.THE 200-DAY MOVING AVERAGE IS AT 195, DAILY MACD HAS MOVED ABOVE ITS TRIGGER LINE GENERATING BUY SIGNAL. THE %D ON WEEKLY GRAPH HAS GIVEN BUY SIGNAL, ON DAILY GRAPH SCRIPT HAS FORMED INVERSE HEAD AND SHOULDER PATTERN, WEEKLY R.S.I HAS ALSO GIVEN BUY SIGNAL. THIS SCRIPT IS FOR LONG TERM INVESTORS.
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| posted by KIRAN RAJUSTH @ 7:15 PM |
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| Saturday, August 19, 2006 |
| MAY MAYHEM |
THE RECENT MARKET CRASH IN THE MONTH OF MAY HAD RESULTED IN SUBSTANTIAL WEALTH EROSION OF SMALL RETAIL INVESTORS.THE MARKET FELL FROM ALL TIME HIGH OF 12,500 PTS TO LOW OF 8800 PTS.THE FOREIGN INVESTORS (FII) STARTED BOOKING PROFITS AND WERE BY AND LARGE RESPONSIBLE FOR MARKET CRASH,WHILE FOREIGN INVESTORS MADE HUGE PROFITS OUR RETAIL INVESTORS LOST HEAVILY,SOME OF THEM HAD TO SELL THEIR PROPERTIES.THE UNWINDING OF BIG OUT STANDING POSITION IN FUTURE AND OPTION MARKET TO THE TUNE OF 50000 CRORES WAS ONE MORE REASON FOR FREE FALL AS POSITION TRADERS WERE UNABLE TO PAY MARKED TO MARKET LOSSES.THE
MARKET TANKED PRACTICALLY BY 4000 PTS IN A PERIOD OF JUST 1 MONTH.THE FOREIGN INVESTORS STARTED SHORT SELLING IN FUTURE MARKET WHICH IMPACTED CASH MARKET
PRICES,SINCE THE FALL IN THE MARKET WAS ARTIFICIAL THE SEBI IN CONSULTATION WITH FINANCE MINISTRY SHOULD HAVE TAKEN STERN ACTION BY BANNING SHORT SELL AS THE PRICES WERE FALLING LIKE NINE PIN DAILY.EACH AND EVERY DAY THE MARKET USED TO OPEN WITH THE GAP ON THE LOWER SIDE WITH MOST OF MID-CAPS OPENING DOWN ON LOWER CIRCUIT INDICATING THEIR WERE ONLY SELLERS AND NO BUYERS IN THE MARKET AS A RESULT OF WHICH RETAIL INVESTORS WERE UNABLE TO MAKE EXIT,MOST OF RETAIL-INVESTORS WHO HAD TAKEN LOANS FROM THE BANK AND HAD INVESTED IN MID-CAP SAW AN EROSION OF 50% IN THEIR PORTFOLIO AND MANY OF THEM HAD BOOKED LOSSES ANTICIPATING FURTHER FALL IN THE PRICES,WHILE OUR FINANCE MINISTER WAS HIGH LIGHTING THE FUNDAMENTALS OF INDIAN ECONOMY NO PROMPT ACTION WAS TAKEN ON BANNING SHORT SELL( SHORT SELLING MEANS SELLINGS SHARES WI TH OUT HOLDING THEM PRACTICALLY) IN BOTH CASH AND FUTURE
MARKET.THIS MOVE COULD HAVE STOPPED MARKET FROM FREE FALL AS RESULT OF WHICH BOTH FOREIGN INVESTORS AND INTRA DAY TRADERS STARTED SHORTING THE MARKET BRINGING THE PRICES FURTHER DOWN,JUST TO REMIND THE READERS THAT SUCH TYPE OF ACTION HAD BEEN TAKEN IN PAST ALSO TO PROTECT THE MAJORITY OF INVESTORS INTEREST WHO WERE ON LONG SIDE,WHILE IN OTHER COUNTRIES THEY LOOK INTO THE INTEREST OF SMALL INVESTORS BUT UNFORTUNATELY IN OUR COUNTRY RETAIL INVESTORS ALWAYS LOOSE MONEY,WHAT EVER PEOPLE HAD EARNED IN LAST 3 YEARS BULL MARKET GOT COMPLETELY VANISHED IN ONE MONTH.THE BIG LOT SIZE OF SHARES IN FUTURE AND OPTION MARKET IS ANOTHER POINT OF CONCERN,THE SEBI SHOULD DOWN THE CONTRACT SIZE SO THAT MORE RETAIL INVESTOR CAN PARTICIPATE IN FUTURE AND OPTION MARKET AS IT WAS IN THE DAYS OF BADLA WHERE WE COULD PURCHASE EVEN 100 SHARES.THE GOVERNMENT SHOULD TIGHTEN THE NORMS FOR FOREIGN INVESTORS AS THEY DONOT HAVE ANY PERMANENT ESTABLISHMENT IN OUR COUNTRY,FINALLY MY ADVICE TO THE GOVERNMENT WOULD BE NOT TO KILL RETAIL INVESTORS,AS REATAIL PARTICIPATION IS MUST FOR ANY FINANCIAL MARKET AND IT IS RETAIL MONEY THAT WILL DRIVE UP THIS MARKET.MY SUGGESTION TO INVESTORS WOULD BE TO KEEP ON BOOKING PROFITS,REMEMBER AS MENTIONED IN DOW THEORY PEOPLE LOOSE MONEY BECAUSE OF TWO REASONS (1) GREED: THAT PRICES WOULD MOVE UP FURTHER (2) FEAR: THAT PRICES WOULD FALL SHARPLY,BOTH OF THEM ARE EQUALLY BAD .IN OUR OWN COUNTRY FOREIGN INVESTORS ARE MAKING MONEY WHERE AS WE BEING CITIZEN LOOSE HEAVILY IN EACH AND EVERY FALL. |
| posted by KIRAN RAJUSTH @ 11:30 AM |
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| Wednesday, August 16, 2006 |
| FUTURE OF INDIAN ENGINEERING AND CONSTRUCTION SECTOR |
| POWER BUSINESS CONTRIBUTES TO LARGE PART OF ENGINEERING SECTORS ORDER BOOK AND WITH GOVERNMENT CLEARING THE BLUE PRINT TO ADD 100000 M.W OF ELECTRICITY GENERATION CAPACITY BY 2012 ENGINEERING SECTOR WILL BE MAJOR BENEFICIARY ,ALSO AS PART OF GOVERNMENTS APDRP PROGRAM,THE STATES HAVE TO UNBUNDLE GENERATION,TRANSMISSION AND DISTRIBUTION AND INVEST IN T&D INFRASTRUCTURE.THIS WILL FURTHER BOOST THE PERFORMANCE OF ENGINEERING SECTOR.INVESTMENT IN CORE INFRASTRUCTURE LIKE ROADS,PORTS ,AIR-PORTS,HOUSING SHALL ALSO BOLSTER THE GROWTH FOR THE SECTOR.WORLD CLASS INFRASTRUCTURE HAS EMERGED AS ONE OF THE MOST IMPORTANT NECESSITIES FOR SUSTAINED GROWTH AND REMOVAL OF POVERTY IN ANY ECONOMY AND WITH POOR INFRASTRUCTURE TO SUPPORT OTHER GROWTH INITIATIVES,THE INDIAN ECONOMY CONTINUES TO BE LAGGARD WHEN COMPARED WITH DEVELOPING PEERS.APART FROM HIGH-WAY DEVELOPMENT,CONSTRUCTIONS AND MODERNISATION OF AIR-PORTS,THE POTENTIAL OF SECTOR LIES IN OIL AND GAS SPACE,WHERE HIGH GLOBAL-DEMAND HAS LED TO INCREASE ACTION IN EXPLORATION AND PRODUCTION ACTIVITIES. |
| posted by KIRAN RAJUSTH @ 1:40 PM |
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| STERLITE OPTICAL |
 STERLITE OPTICAL
CURRENT PRICE :139RS
TECHNICAL VIEW:SCRIPT SUGGESTED FOR INVESTMENT IS
STERLITE OPTICAL.THE SCRIPT HAS STARTED INTERMEDIATE
UPTREND.THE SCRIPT HAS GOT
STRONG SUPPORT AT THE LEVEL
OF 100 R.S,TODAY IT HAS GIVEN
POWERFUL BREAK-OUT ON DAILY GRAPH,ANY DECLINE SHOULD BE USED FOR ENTRY
PURPOSE,ON MONTHLY GRAPH
IT IS MAKING HIGHER TOPS AND
BOTTOM WHICH IS BULLISH SIGN.THE POSITION OF AVERAGES IS STRONG INDICATING BULLISHNESS IN NEAR FUTURE.
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| posted by KIRAN RAJUSTH @ 6:25 AM |
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| Monday, August 14, 2006 |
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| OUR EARLIER SUGGESTION ON SCRIPTS LIKE ABAN-LOYD,DECCAN CHRONICLE HAVE SHOWN POSITIVE RESULTS.ABAN-LOYD HAS MOVED UP FROM 1120 R.S TO CURRENT PRICE OF 1180 R.S,DECCAN CHRONICLE HAS MOVED UP FROM 410 R.S TO 500 R.S,AS TECHNICAL POSITION OF MARKET AND INDIVIDUAL SCRIPTS KEEP CHANGING ON DAILY BASIS,VISIT THE SITE FREQUENTLY FOR REGULAR UPDATES ON STOCKS AND LATEST ADVERTISEMENT FOR YOUR BENEFIT IN MAKING INVESTMENT DECISIONS |
| posted by KIRAN RAJUSTH @ 10:30 PM |
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| Friday, August 11, 2006 |
| ABAN LOYD |
CURRENT PRICE: 1120 R.S
TECHNICAL VIEW: THIS COMPANY IS LOOKING QUITE STRONG.THE INTERMEDIATE UPTREND OF THE SCRIPT STARTED FROM 14TH JUNE AT 700 R.S WHICH IS STILL INTACT.THE MAJOR TREND OF THE COMPANY IS UP AND STRONG,THEREFORE ANY SHORT TERM DECLINE SHOULD BE USED FOR ENTRY PURPOSE.THE INTERMEDIATE UPTREND WILL TERMINATE ONLY IF SCRIPT CLOSES BELOW 925 R.S.THE SCRIPT IS MOVING UP WITH GOOD VOLUME.THE MOVING AVERAGES 13S+21S+34S ARE STRONG AND RISING INDICATING BULLISHNESS IN THE SCRIPT.THESE RISING AVERAGES SHOULD PROVIDE SUPPORT TO SCRIPT IN CASE OF DECLINE.THE 200-DAY MOVING AVERAGE IS AT 900 R.S,THEREFORE WE ARE PUTTING BUY CALL ON THE SCRIPT INCASE OF ANY DECLINE.
COMPANY BACKGROUND: ABAN WAS ESTABLISHED IN 1966 AS SMALL ENGINEERING COMPANY IN CHENNAI (SOUTH INDIA),ABAN GREW RAPIDLY FROM STRENGTH TO STRENGTH AND QUICKLY DIVERSIFIED INTO NEW FIELDS,TODAY THE GROUP IS MULTI-DIMENSIONAL CORPORATRE ENTITY WITH WELL ESTABLISHED EXPERTISE IN THE FIELD OF CONSTRUCTION ,OFFSHORE AND ONSHORE DRILLING,WIND ENERGY AND POWER GENERATION,IT ENABLED SERVICES,HOTELS,RESORTS AND TEA PLANTATION |
| posted by KIRAN RAJUSTH @ 6:15 PM |
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| About Me |
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Name: Kiran Rajusth
Home:mumbai, India
About Me: I am Professional Technical Analyst giving Share
Consultancy in Indian Stock Market Since Last 10 Years...
See my complete profile
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