Buy AXIS Bank for Long Term

AT FIRST glance, the deal between Axis bank and Enam Securities appears very expensive,
considering that the bank is paying nearly 16 times Enam's annualized FY11 profit before
tax (PBT). However, given Enam's major strengths in the investment banking and
institutional broking business and higher profitability compared to its peers, the deal should
pay off for Axis bank in the long term.
The acquisition would enable Axis Bank to enter the league of one-stop-shop financial
institutions, currently dominated by ICICI Bank and HDFC Bank. For Axis Bank's
shareholders, earnings upside following the deal will be limited in the short run, given the
bank's much bigger balance sheet size. But the deal fills in the strategic gap in the bank's
service offerings.
While the deal appears to be on the expensive side, it needs to be noted that it is purely
stock based, which means no cash will change hands. This also means Enam's promoters
would hold on to the equity of Axis Bank for at least one year. Given this restriction and the
recent volatility in stock markets, it is perhaps appropriate that Enam has managed to
attract a premium valuation.
For instance, Enam's closest peer Edelweiss Capital trades at over 12 times its annualized
FY11 PBT. Compared to this, Enam's valuation seems way high. But in the event of a further
decline in emerging stock markets, Axis Bank's stock price may also slide, going forward.
Assuming that it declines by over 10%, Enam's valuations would come in line with those of
its peers.
Another compelling factor is Enam's operations are yielding far superior margins at over
40% compared to 25-30% margins of its peers. Axis Bank would also get access to Enam's
experienced team, which includes over 400 professionals. This is crucial since the
investment banking business is purely relationship driven.
One concern for Axis Bank is the duplication of services. A few analysts point out that the
bank already has an investment banking licence and a broking subsidiary. Given this, it will
be critical to see how well the bank identifies synergies with Enam's acquired operations.
As part of the deal, the bank would issue fresh equity to Enam's promoters, which would
form over 3.3% of the enlarged equity base, post deal. The resulting dilution in the bank's
earnings per share in the short term would be less than 0.5%, which need not stoke
concerns. The bank has most of its fundamentals in place with a healthy growth in the loan
book and a robust asset quality. Its current stock price is 3.4 times its book value, lower
compared to HDFC Bank's 4.7. The bank's stock might see a small dip in the near term,
given the market's perception of steeper valuation of Enam. However, the valuations would
be justified once the acquired businesses start contributing to the bottom-line.

trading calls on wealthsec blog

Top Picks - Fundamental

PTC India Ltd (PTCIND)
CMP - 120
Target - 180

Bajaj Holdings & Investments Ltd (BAJHOL)
CMP - 858
Target - 1182

Shiv-Vani Oil & Gas (SHIOIL)
CMP - 404
Target - 525


Top Picks - Technical

Karnataka Bank Ltd (KARBAN)
CMP – 164.9
Time Horizon - 1 Month
Target - 181.3

Aban Offshore Ltd (ABAOFF)
CMP – 695.5
Time Horizon - 1 Month
Target - 750

Neyveli Lignite Corporation Ltd (NEYLIG)
CMP – 130
Time Horizon - 1 Month
Target - 145

Upcoming results...

October 13, 2010
ARROW TEX	Goldcrest Fin	Jindal Poly	Riddhi Siddhi	Tata Metaliks
Elpro Intl	Honeywell Auto	Marsons	Stone India
October 14, 2010
Axis Bank	Geojit Bnp	Kernex Micro	Midas Pharma	UTV Software
Dynacons Sys	Gruh Finance	LIC Housing Fin	Rallis India	VST Inds
EUROFINMART	Infotech Enter	Mastek	Shirpur Gold
October 15, 2010
Alpha Hitech	Dhanprayog	Jay Bharat Marut	Manappuram Gen	Sarthak Inds
Betala Global	Eskay Knit	Karnataka Bank	Nu Tek India	SURYAMBA SP
DB Intl Stock	Heidelbergcement	Krishna Life	Orbit Exports	Vardhman Poly
Dev Credit Bank	Infosys	Maharashtra Scoot	Polyspin Expo	Venus Remedies
October 16, 2010
Asahi Fibres	Jaybharat Tex	KSL Inds	Sudarshan Chem
Associated Ston	Key Corp	Reliance Indl Infra	Suryalakshmi
Godrej Prop	Kilpest India	Sanghi Corp	Unichem Lab

Buy GVK Power & Infrastructure, short term

Buy GVK Power & Infrastructure BSE Code- 532708 @ 47 with the target of 59 (short to medium term)
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Stock is also in Futures and Options
One can buy in Options Call of Strike Rate 50 for the month of Oct2010

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Delivery Call: Buy Adani Power for the target of 160

Delivery Call: Buy Adani Power for the target of 160- 165 Rs. in very short term

our yesterdays call of Cosmo Films touched Rs. 165 (from 140 in just 1 day)

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For opening Demat and Trading account in Vasai based Wealth Securities call us on 09321318382

Buy cosmo films for few days with target of 170

Looking at the Charts of Last 2 days trading and all the volumes at 150Rs. Level

We are bullish on Cosmo Films with short term target of 168-17o Rs.

One can also watch and buy any other Films stocks like-Polyplex or a Uflex

Analysts see bullish days ahead for Sensex

With the BSE benchmark Sensex breaching the 19,000-level and still going strong, analysts believe that Indian markets have entered a bull phase and persistent FII inflows may push the index past the 20,000-mark in the coming days.

"Investors are sitting on huge cash piles and as the market is rising, they cannot sit sideways for long. A large chunk of cash is coming in the market and in such a scenario, hitting the 20,000-mark seems easy," CNI Research CMD Kishore Ostwal said.

"By October the Sensex is likely to cross the 20,000-mark and by November, I see it at the 21,000-level," Ostwal added.

The Sensex had touched an all-time high level of 21,206 in January, 2008, a year that saw the benchmark index of the Bombay Stock Exchange record an over 80 per cent jump.

Echoing a similar opinion, Network Stock Brokings Head of Institutional Sales & Strategy Prakash Diwan said hitting the 20,000-level would not be a big deal in the coming days.

"The market is driven by strong liquidity and FII inflows are expected to continue in the local stock market. Hitting the 20,000-level by Sensex would not be a big deal. Soon the Sensex will be able to reach that level," he said.

On Monday, the Sensex zoomed by more than 408 points to cross the 19,000-level for the first time in 32 months.

"Investors have faith in the India growth story and in the coming days, the Sensex will touch new highs," Diwan added.

The index has risen 122.3 percent so far this year, from a low of 8,701.07 in October, 2008, on account of the global economic crisis.

"I do not see any reason why markets should not move up. It is a liquidity-supported rally and unabated FII inflows would further push local markets," SMC Global Securities Equity Head Jagannadham Thunuguntla said.

"India is one of the hot spots for overseas investors and those fund houses, which were still watching the situation, now are interested to pick up local stocks as global equities are rebounding," Thunuguntla added.
The Sensex took just five days to reach the 19,000-level from the 18,221.43 mark. On September 3, the index had settled at 18,221.43.

Three banking stocks -- SBI, ICICI Bank and HDFC -- accounted for about 70 per cent of the Sensex's rise from 18,000 to 19,000.

"Banks are on a rising streak on optimism that lending will pick up in a fast-growing Indian economy and that they are well capitalised," IIFL Vice-President (Research) Amar Ambani said.

"Banking stocks jumped as regulators gave firms more time than expected to meet capital requirements (the Basel norms)," another analyst added.

However, equity analysts did not rule out a correction in the markets, as they felt stocks are overvalued.

"Investors should take cautious approach about the market this time. A fall from this high cannot be ruled out," Unicon Financial CEO Gajendra Nagpal said.

The BSE benchmark Sensex was up by 153.39 points at 19,361.72 Tuesday, with just an hour left before the close of trade.

IFGL Refractories: Stock that gained 16% in buoyant trade

IFGL Refractories gained 15.83% or Rs 8.15 to close at Rs 59.65. It touched an intraday high of Rs 61.80 and an intraday low of Rs 54.10. There were pending sell orders of 496 shares, with no buyers available.

Why the run up?
The company has acquired two US based companies EI Ceramics LLC and CUSC International Ltd for a total of USD 13 million. The acquisitions will be partly funded by equity and partly debt with the major portion being debt. The deal is expected to help the refractories manufacturer expand its capacity.
EIC designs, manufactures and supplies isostatically pressed continuous casting refractory to several major steel-makers in North America, which would provide the Indian refractory firm with a lot of synergies.
In an interview, KamalSarda, COO, IFGL Refractories said,"At the current level, at half year, the two companies had about USD 6.5 million. We expect to add about USD 13 million to USD 14 million this year. We hope it would substantially increase after we have absorbed everything." The company sees a 15-20% growth on current operations in the current fiscal.
The company is engaged in the manufacture of specialised refractories and requisite operating systems for the steel industry. The IFGL Group of companies is focused on the global markets and sells in European Community, Americas, South East Asia, Oceania, Middle-East, South Africa, Egypt, Algeria, Nigeria, Russia, Kazakisthan, Singapore, Japan, Taiwan and Phillipines.

Govt moots relaxation in FDI rules on JVs

The government on Friday proposed a major relaxation in FDI rules to allow foreign firms to bring in new technology and set up new independent business without clearance from their existing local partners.

The move is aimed at attracting foreign direct investment (FDI) into the country, which has recently slowed down.

Under the present dispensation, a foreign player who had set up a joint venture (JV) in India before January 12, 2005 but now wants to open a new business independent of the existing domestic partner faces barriers.

The foreign player not only needs the government approval but also a 'no-objection certificate' from the domestic partner to the effect that the new forays would not "jeopardise" interest of the existing JV.

"The proposal is a welcome move it will attract more and more FDI and will also bring in high quality products for Indian consumers at competitive price," Naresh Makhijani, Executive Director, KPMG said.

The FDI rules proposed to be relaxed were not applicable to the joint ventures entered after January 12, 2005. Thus, the changes would help foreign investors who entered JVs before this date.

Suggesting abolition of this rule, the Department of Industrial Policy and Promotion (DIPP) said in a discussion paper, "There is a need to examine whether such a conditionality continues to be relevant in the present day context."

Alternatively, it has suggested that the stipulation of no-objection from the domestic partner should not be applicable to JVs which are 10-year old.

It has invited comments from the stakeholders till October 15.

The move follows representations from foreign investors pointing out that their domestic partners were using a string of press notes since 1998 "as a means of extracting unreasonable prices/commercial advantage. These press notes had become a stumbling block for further FDI coming into the country."

The DIPP, the nodal agency for FDI related matters, said India has entered into a number of free trade agreements and several others are under negotiations.

"In such a scenario if an industry (FDI) is discouraged from being set up in India, it could be set up in a neighbouring country with whom a trade agreement exists or is being negotiated," it said.

India received USD 25.8 billion FDI in 2009-10.

After a pick up in the first two months of the current fiscal, the inflows have slowed down for June and July.

KRBL: Stock that gained 54% in 5 days

The catastrophic floods which have destroyed Pakistan's rice crop seem to have opened doors for India's Basmati rice producers. One of the beneficiaries has been Basmati rice exporter KRBL. Its stock price gained 54% over the last five days. Today, however, it managed just 1.80% or Rs 0.65 to end at Rs 36.80. It touched an intraday high of Rs 38.50 and an intraday low of Rs 36.05 and touched a 52-week high of Rs 38.50.

Why the run-up?

The most devastating floods in Pakistan’s history has destroyed crops and damaged infrastructure severely. A rice exporters’ group in Pakistan has forecast that exports may plunge significantly for the year.

In an interview, Anil Mittal, CMD, KRBL said, "The rice prices have increased by about USD 100 in the last 10-15 days. This is primarily because Pakistan floods have helped India to boost their prices. Since Pakistani prices have also increased by USD 100-150 in the last one month, that is the reason Indian prices have been boosted by USD 150 per tonne.

India, the second largesst producer of rice, had put into practice a trade ban on non-Basmati rice in April 2008 to increase the country's domestic supplies. The drought in 2009 further compounded issues for the government with a double-digit fall in rice production forcing it to continue with its restrictions in 2009.

Mittal however expects relaxations on export parameters for non-Basmati rice any time soon. "Looking at the monsoons and looking at the prospects of non-Basmati crop, I am quite confident that by October, the government will take the position of the crop and will definitely open the exports of non-Basmati rice."

As compared to about 2.8 million tonne of the total Indian export, KRBL's export this year is about 140,000 tonne. "We are expecting a 20% rise overall. The Indian exports of Basmati will jump by 20% this year because of the Pakistani floods," said Mittal.

What experts said during the week:

Rahul Mohindar, viratechindia.com told, "KRBL is pretty good from a long term count. But the stock has obviously run up to a good degree. It had a significant price and volume breakout over the last couple of weeks, which certainly makes this very potential longer run. But again if you are worried about the short term, Rs 36 to Rs 38 is a resistance area. We are still sitting in that zone where we might knock off 8% or 10%. So unless you are really worked out about the very short term I would still recommend holding on to the stock. We see this as a candidate for about Rs 52 and one has to be prepared that the stock can correct to something like Rs 31–32. So keeping that downside cushion, one should continue holding on to KRBL. It has made a case with the kind of volumes and price breakouts that we have seen over the last week where it shows that there is a lot more potential to come."

He added,"I am obviously looking at a timeframe of about 6 months plus. It’s a stock which can give you one of those sudden momentum moves. But again one should keep a timeframe of approximately 6 months in mind."

Mitesh Thacker, Technical Analyst, miteshthacker.com said, "We have seen a strong run-up in all the rice stocks. KRBL though it is difficult to give a price target on it, because it has broken into all time highs, but if we look at the momentum and the technical setup, there is at least a 15% upside, and Rs 40-42 should be easily tested probably even higher."

Bull of the Day: Stock that gained 10% in a muted mkt

The stock of Suven Lifesciences got a shot in the arm after the pharmaceutical firm announced its eighth product patent in Australia and Mexico for its new chemical entities. The stock gained 9.56% or Rs 2.80 to close at Rs 32.10. It touched an intraday high of Rs 32.75 and an intraday low of Rs 29. There were pending buy orders of 1,128 shares, with no sellers available.

Why the run-up?

The company secured two product patents, one each in Australia and Mexico, for a new chemical entity to treat disorders associated with neuro-degenerative diseases. The patents in Australia and Mexico will be valid till 2023 and 2025 respectively.

The company with its pipeline of molecules that it is developing in the central nervous system arena for cognitive disorders is eyeing an estimated USD 30 billion potential global market.

Back in May, the company had received a patent for new neuro molecules, from Canada and Eurasia. The contract reserach and manufacturing services provider received the Canadian and Eurasian patents for new chemical compounds with the potential to treat several neurodegenerative diseases including Alzheimer's.

In April, Suven Life’s investigative 5-HT compounds won patents from New Zealand and India, while in March, it secured another patent from the European Patent Office for a lead molecule with the potential to treat neurodegenerative diseases.

The company is looking to raise USD 20 million by the end of fiscal year 2011 to fund its research activities and could consider diluting stake. Speaking on the company's fund raising plans, Venkat Jasti, CEO of Suven Life Sciences had told on August 27, "We have brought 13 molecules to the table. But when it comes to development and clinical trials, and this is for SUVN-502, we need to spend about USD 20 million, for which we don’t have cash on hand. We will be raising that at the end of the year."

Also read: Will raise $20 million by year-end: Suven Life Sciences

The company had signed an agreement with Eli Lilly back in 2008, according to which the company would receive research funding as well as potential discovery and development milestone payments in the range of USD 19 million to USD 23 million per candidate and potential royalties on net sales of any products that may be successfully commercialized from the collaboration.

Gujarat Gas: Stock that surged 10% in a strong mkt

Ahmedabad based leading private gas distributor, Gujarat Gas Company Limited's stock rose over 10% on the back of an increase in compressed natural gas (CNG) prices by the company to Rs 32.45 per kg. The stock surged 10.21%, or Rs 36.05 to end at Rs 389. It touched a 52-week high and an intraday high of Rs 403.40 and an intraday low of Rs 352.95. There were pending sell orders of 26 shares, with no buyers available.

Why the run-up?

Following a supply crunch from its conventional sources, and an increase in input costs, the company hiked the price of CNG effective September 5, 2010 to Rs 32.45 per kg, an 8% increase over the existing price of Rs 29.96 per kg in Bharuch, Ankleshwar and Surat in Gujarat.

In 2009, the company had raised CNG prices following a weak rupee and revised electricity tariffs in the state. Over 100,000 vehicles in these towns run on CNG.

The company has been a part of the British Gas Group, a global leader in natural gas, since 1997. BG Group has a 65.12% controlling stake in GGCL. FIs, FIIs and public hold the remaining 34.88% of shares.

Since January of this year, gas prices for industrial units have gone up almost 10%. A growing demand for natural gas has put the company in a sweet spot.

It has a strong presence in Gujarat, which offers good potential for natural gas across industries. As gas supply in India increases, natural gas could become a cheaper and a superior alternative to industrial fuels like naphtha, used in power, steel and fertiliser industries.

Also, the number of vehicles using CNG is expected to rise significantly over the next five years, according to estimates of the Petroleum and Natural Gas Regulatory Board. Gujarat Gas is strategically well placed to take advantage of this growing demand, combined with its focus on the industrial market on the retail side. The company also has long-term contracts with domestic suppliers which provides it good revenue visibility.

Bull of the week: Stock that rallied 62% in 5 days

EIH Associated Hotels gained 9.98% or Rs 20.95 to close at Rs 230.85. It touched a 52-week high of Rs 230.85. There were pending buy orders of 43,187 shares, with no sellers available.

Why the run up?

On August 30, 2010, Energy major Reliance Industries controlled by billionaire Mukesh Ambani, announced its foray into the hospitality sector by acquiring a 14.12% in EIH for a total cost of Rs 1021 crore. The stake buy worked out to Rs 184 per share. The acquisition at Rs 184 per share represented almost a 20% premium to its price of Rs 151 on the day. EIH holds 75% controlling stake in EIH Associated Hotels.

On September 01, 2010 , Reliance, bought an additional 0.68% in EIH Ltd, raising its holding to 14.8% in the hotel chain.

Reliance's 14.8% stake in EIH, just shy of the 15% level that triggers a mandatory open offer to buy an additional 20%, could mean the company is not keen to take management control of the hotel chain.

ITC, which holds 14.98% stake in EIH, reiterated that it would not make a hostile bid for EIH.

Analajit Singh, Chairman of Max India, who also holds under 5% stake in EIH, was also interested in hiking his stake in the company. However, talks failed over differences in valuations.

FDI dips 18% during Jan-June 2010

New Delhi: Foreign direct investment in India declined by 18.3 percent to USD 10.77 billion during the first half of 2010.

During January-June 2009, the country received USD 13.19 billion foreign direct investment (FDI), according to the data of the Industry Ministry.

"The main reason for the decline in FDI is slump in the major western economies like the US and Europe..., international trade expert with India's prestigious Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said.

Joshi said that the flow of foreign investments depends particularly on the on the revival of the western countries.

The sectors which attracted maximum overseas investments include services, telecommunication, construction activities, housing and real estate, power and automobile.

The country received maximum investments from countries like Mauritius, the US, UK, Singapore, the Netherlands and Japan.

The government is making sustained efforts to make the FDI policy regime more attractive and investor friendly, with a view to attract investments from all major investing countries.

The government had floated discussion papers for public comments to liberalise FDI in multi-brand retail and defence sector.

FDI for 2009-10 at USD 25.88 billion was lower by five percent from USD 27.33 billion in the previous fiscal.

Auto sales beat monsoon blues; Maruti posts record numbers

New Delhi: Increasing spending power and excitement created by model launches helped major automakers report robust growth in August sales Wednesday with market leader Maruti Suzuki witnessing best ever monthly dispatches.

Automobile sales, which are usually down in the rainy season, continued to cruise with major firms, including Hyundai, Tata Motors and Hero Honda posting healthy sales in August, due to increased consumer confidence on the booming economy.

During the month, Maruti Suzuki posted its highest ever monthly sales at 1,04,791 units, a 23.56 percent increase from 84,808 units in August 2009.

The company also posted its best figure so far for the domestic market at 92,674 units, a 32.47 percent increase from 69,961 units in August 2009.

"With economic activities going strong, consumers' spending powers have increased. It has helped boosting auto sales," IDFC securities director (research) Ramnath S said.

New models by the companies have also created excitement in the market and many of these have witnessed long-waiting periods for delivery, he added.

The country's second largest carmaker Hyundai Motor India also reported 17.21 percent jump in its domestic sales at 28,601 units as against 24,401 units in August 2009.

Commenting on the sales, Hyundai Motor India director
(marketing and sales) Arvind Saxena said the market continues to be positive and the company expects the trend to continue with the onset of the festive season.

Homegrown auto major Tata Motors reported a 45.10 percent increase in its domestic passenger vehicle sales at 25,196 units compared to 17,364 units in the year-ago month.

Another manufacturer Mahindra & Mahindra's sales in domestic market jumped by 27.39 percent last month at 27,275 units as against 21,410 units in the same month last year.

Carmaker General Motors India saw its sales climbing 33.71 percent to 7,941 units in August compared to 5,939 units in the same month last year. Honda Siel Cars' sales stood at 5,532 units, registering 38.75 percent jump over 3,987 units in the corresponding month last year.

Another auto maker Toyota Kirloskar Motor reported 26.09 percent jump in its sales at 6,361 units compared to 5,045 units in the corresponding month last year.

Ramnath said the growth momentum is expected to continue in future up to the festive season.

"There is a spill-over of demand... The festive season will be very good this time," he added.

On the two-wheelers front, market leader Hero Honda reported a jump of 2.28 percent in its sales at 4,24,617 units in August 2010 against 4,15,137 units in the same month last year. It was the 4th consecutive time, the company posted over four lakh dispatch sales in a single month.

Chennai-based TVS Motor Company's two-wheeler sales in last month grew 31.75 percent to 1,67,109 units from 1,26,842 units in August 2009.

Another two-wheeler maker India Yamaha Motor reported 29.76 percent increase in its total sales at 30,450 units. It had sold 23,466 units in the same month last year. Suzuki Motorcycle India's sales jumped 50.78 per cent to 19,314 units from 12,809 units in August last year.

Good US macro data crucial for markets this week: David Bowers

The sell-off across globe weighed on the markets; European markets like France's CAC, Germany's DAX and Britain's FTSE went down around 1% each. Even US index futures were down 0.5%.

The benchmark Nifty closed with modest losses, after showing smart recovery in the last half an hour of trade, led by FMCG, auto, select telecom, healthcare and technology companies' shares. The Sensex recouped more than 150 points despite weak global cues and a 3% fall in RIL.

The Sensex closed at 17,971.12, down 60.99 points or 0.34% and the Nifty fell 13.05 points or 0.24% to settle at 5,402.40, after seeing a recovery of 151.13 points and 53.5 points from their day's respective lows.

Kingfisher board okays raising up to Rs 5000cr

The board of private carrier Kingfisher Airlines met on Tuesday and approved a resolution to raise up to Rs 5,000 crore in order to retire massive debt, which currently stands at Rs 6,000 crore. The company now seeks shareholders’ nod for fund raising and also to hike authorised share capital, which after the board’s approval has gone up to 4,250 crore from Rs 1,000 crore.

The company says that fund raising will be done via various instruments which could include preferential shares, GDRs, rights and even equity shares. It also says that it will immediately be raising up to USD 250 million by way of GDR and about Rs 500 crore will come in via domestic offering.

The process, company says will get completed within the next three to four months.

The aviation major will also convert Rs 650 crore of UB loans into preferential shares. It will also seek shareholders’ approval to increase the authorized share capital from the Rs 1,000 crore that they have to Rs 4,250 crore. This translates into hiking authorized equity capital from Rs 900 crore to Rs 1,650 crore and Rs 100 crore share authorized preferential share capital to Rs 2,600 crore

Liberty Shoes keen on breaking into telecom equipment space

CEO of Liberty Shoes, Adesh Gupta said, they hope to foray into the telecom space soon. However, he declined to confirm whether they have bid for ITI Limited, which manufactures and supplies telephone and communications equipment and parts. "It is a sensitive issue. We would prefer not to add any comments at this point in time. At an appropriate time we will come back to you," he said.

He however mentioned that any such bid would most likely be through the promoter entity and not the listed Liberty Shoes.

See Sensex at 22000 by year end: Deutsche Bank

Today, the Sensex closed at 18038.25 up 39.84 points or 0.22% and the Nifty ended up 6.75 points or 0.12% at 5415.45.

Ashwani Gujral, Technical Analyst says, 5,470 was a key level while the markets were coming down. “Today, we have kind of tested that level again and confirmed that this market now has downside momentum. So, in case 5,400 gets taken out, which is about the 50-day moving average, then the next level here should be 5,250 to 5,270. Clearly, we are in a correction and it’s likely that we underperform global markets in this period.”

However, Ajay Bagga, Head of Private Wealth Management (PWM) India, Deutsche Bank doesn’t expect a major correction. He sees Sensex at 22,000 by the end of the year. “We remain bullish on the Indian markets.”

SEBI allows trading using cellphones, laptops etc

Mumbai: Putting an end to a long wait, trading in the stock exchange can be done through cellphones and laptops now, a Securities and Exchange Board of India circular released Friday said.

“It has been decided that SEBI registered brokers who provide Internet Based Trading as shall be eligible to provide securities trading using wireless technology. All relevant requirements applicable to internet based trading shall also be applicable to securities trading using wireless technology”, the circular said.

The investor with a wireless device will be able to download the facility provided by his broker to the device and can buy or sell shares on the move.

The encryption and security of access will governed by the DoT regulations. The circular also calls for putting in place alternative means o communication if there is a failure in the network. A unique identification number like in internet based trading shall be made applicable.

India with its high level of cellphone penetration, could witness a revolution in trade volume. India’s cellphone subscriber base stands at 636 million as on June 2010.

Many large broking houses like Geojith BNP Financial Services, Motilal Oswal Financial Services already have the system in place. They are waiting for approvals from the stock exchanges, which are responsible for overseeing the broker’s adherence to SEBI guidelines.