Friends,
FIIs are reported to have increased their holding in leading IT companies like Insosys, TCS and Wipro etc. during qtr ended Dec07. After having suffered fall in values in 2007 by about 30% to 40% from their peak levels, thse stocks offer good values to FIIs as they now have pretty reasonable discounting while their future prospects are not all that bleak. Who then is supplying tock is the qustion that comes to mind. As earlier mention on these columns , the promoters are selling as also the ESOP holders. I recommend regularly buyig in to Indian IT sector aand would you believe that I have for the first time since 1998 have had the courage to recommend IT stock buying in general.
Muthuraman of Tata Steel is a worried man. he expects the steel imports of % m/t this year. According to him the raw material sources of the country are just enough to give 10M/T o steel per capita to Indians and India is wrongly perceived to be raw material rich country. He sid Brazil and Australia have the capacity to ofer 333 tonnes and 2000 tonnes to their citizens on per capita basis. This is an interesting peice of information and suggests that before long India will have to import iron ore and other raw material and minerals.
Nagpur and Kunnur Arports have been given green signal by govt to commence work . Nagpur Airport will be international passenger and cargo hub.
A new reserch by Institute of International Finance says that the assets of gulf countries will rise to $2000 bn in 2008 which added $215 bn in 2007 and would dd $250 bn in 2008. these assets are mostly managed by sovereign wealth funds.
Reliance Energy has just 1000 mw capacity at presnt nd its 50% subsidery will set up projects of 28000 mw capacity for which the IPO has just been brought out.
SBI would offer right shares at a price of 1590/- each to shareholders on in the ratio of one to five, the proceeds of Rs16500 crs will raise its tier I capital to 11% by march 08.
Natipnal Housing Board has suggested to govt to give 5% subsidy on interest for five years to urban poor on loans for purchase of houses. It has also suggested to provide houses of 25 sq mtrs plinth area in cities to poors at Rs one lac cost. These ideas are in right direction and reflect my thinking too.
HariOm,
krsnaKhandelwal
