Railway budget was not so welcomed by the companies related to Railways like Texmaco, Kalindee, TWL, Kernex etc. But at current levels these companies are very attractive for those who are looking at minimum 6 months investments.

Automobile, Power, Banking and Metal stocks are very active with good volume and appreciation. My list of Stocks to watch in the coming week are NBVentures, Suzlon and Karnataka Bank.

In the coming months, Market is expecting foreign companies to get listed in Indian Share Markets as IDR (Indian Depository Receipts). It will be a great opportunity for Indian Investors to buy global companies in Indian Market. Standard Charted Bank is planning to come out with IDR issue during 1st Quarter of 2010.

SEBI is planning to permit Stock Exchanges to have different expiry contracts for Stock Options. This will give good arbitrage opportunity between the Stock Exchanges. As of today all Stock Options expire on the last Thursday of every month

The procedures involved in investing through Non Repatriation basis is very limited. All the Investor has to do is to open a Demat account with a Depository Participant, Trading account with the Share Broker and to open a NRO account with the bank.

To invest in the secondary market using Repatriation basis, the Investor is expected to acquire permission from RBI. On completion of certain checks RBI gives blanket permission for investment which will be valid for few years. After receiving this permission the Investor has to open a Demat account with the Depository Participant, Trading Account with the Broker and a NRE account with the bank.

In case of Primary market, issuing company will take permission for investment on behalf of NRI Investors

We at LKS MURTHY & CO PVT LTD provide facilities for interested NRI Investors to trade in the Secondary Market. The facilities provided range from

1) Opening of Trading Account

2) Obtaining permission from RBI to invest on Repatriation Basis

3) Equity Market Advice

Interested NRI investors can feel free to contact us.

One of the reasons for the huge bearish sentiments in the market, is the winding up of one of the biggest hedge fund in USA. The Galleon group has liquidated most of their holdings in the share markets through out the world and brought about a selling spree amongst most of the FII’s.

SEBI has recently given permission to increase the trading hours in the Stock Exchange. This has resulted in arguments both for and against the decision. The extension of timings is the effect of globalization and this effect cannot be avoided as traders depend on the movement of scripts in International Markets like USA, HongKong, Singapore, Japan and UK to get a clue about market trends.

The extension in trading hours in going to give tremendous pressure to complete back office work for dealers and mutual fund industries. Hopefully this will lead to instant settlement instead of the current Trading days + 2 days settlement process. It should also create more coordination amongst Stock Exchange clearance house and Bankers. Also the appointment of Market Makers as prevailing in other advanced Stock Exchanges.

SEBI is also finalizing the Power of Attorney (POA) documentation between the Brokers and Investors to avoid misuse of POA by the brokers, which is a very welcome move.

PSU DIVESTMENT

Government took a great decision of allowing healthy PSU’s to divest upto 10% of their holding and link it to the Share Market. This gives a good opportunity for the investors to add these companies to their portfolio’s. Particular companies like MMTC, NMDC, BSNL and SBI are very good

When LKS started his firm he had a vision, a burning desire to be one of the leading brokers of India. But as the saying goes,” Every start is always met with a formidable obstacle”, LKS too had his share of problems. During those days, getting a membership in the Bangalore Stock Exchange, required a start capital of merge Rs 5000, which LKS was falling short off. It was during this time that his honesty, integrity and diligence while working in Lokkur Stocks and Shares came off help. While working in his earlier company, few of the industrialists and high net investors were impressed with his work and more than readily came to his help when he wanted to start a new organization. Prominent names likes V T Velu -Industrialist and Senior Steward of Bangalore Turf Club, Mr M R Srikanth – High networth investor and Mr Chandra Shekar of Poornima Silk House were among the few people who helped us start our organization.

: After few years when LKS went to return the money, they promptly declined it and to this day few of the documents given to us by these well wishers lie safely locked as a rememberence for the selflessness of these individuals

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Market

• Sensex reached 17k and is holding on well, thanks to good industrial output and reconciliatory approach of Anil Ambani.
• Infosys results and Reliance industries bonus did not give the anticipated impetus to the Market

Policy Reforms

SEBI announced some policy changes regarding Indian Depository Reciepts (IDR). Making it compulsory for international companies to be listed in their respective countries stock exchange before being eligible to trade in the Indian Share Market.

Bangalore Stock Exchange

BGSE financials subsidiary of Bangalore Stock Exchange, a leading Brokerage House and Depository Participant in Karnataka, has got a full fledged back office facilities and team of dedicated professionals, who are in a position to offer excellent facilities to other medium and small brokers across the country. They are offering periodically various innovative services to retail investors.Few of the services being,

• Sending SMS and Email alerts to investors who trade through them, the details about their debit and credit on day to day basis.
• Online IPO
• Internet Trading

IPO

India Bull Power issue which opened for public subscription this week received moderate support from retail investors. Support from anchor investors were excellent and so far the issue is over subscribed by 5.5 times

New Listing

Pipev ShipYard got listed in the secondary markets this week and opened at a premium to the issue price and at the end of the week it is currently being traded below the issue price of 58 RS

Market Activity

• Good activity was seen in realty stocks like HDIL, India Bull Real Estate and UniTech.
• Banking stocks like SBI, Axis bank and Dena Bank were doing very well in the market
• Bank Stocks were firm, Telecommunication sector was picking up and appears good to buy at the current rate. Reliance Industries will head northwards in the coming days

For any specific queries you can contact me at my Email ID, lkscapital@yahoo.co.in

or on 080-41125523/24

Market is expected to open firmly in the coming week. One of the major factor will be the new F&O opening. Also because of the importance given to the developing economies in the G20 summit and the valuable contribution by our shrewd economist PM Manmohan Singh.

In this coming week I expect the market to be Bullish in all the segments. Watch out for Eviron industries, NB ventures, 20 microns, TV18, NMDC , Kalindee Railways and Dredging Corporation.