Ambani’s gambit this time?

Mukesh Ambani is a grand master in strategy. So when something happens at flagship Reliance Industries Ltd (RIL), it’s time to sit up and take notice. It is also a good time to ask: what’s his gambit this time?

In recent weeks, RIL has done its best to confuse everyone about what is really going on at its Krishna-Godavari (KG-D6) offshore gasfield. Is it a gusher, or it is about to go phut for a while, with output declining in the short-term, due to “technical problems”? Read Full story Ambani’s gambit this time?

* Source from Moneycontrol

Mahindra Satyam disappoint the market

The index Nifty slumped in red on global concerns pertaining to Greece debt woes. Mahindra Satyam disappoints street in terms of bottomline and continues to bleed in red. Rate sensitives like banks and auto were major laggards in trade today. Fall in commodity prices was reflected in metal stocks today. The broader markets too were reeling under losses.

At 10.41 hrs IST, the Sensex was down 158.31 points or 0.86% at 18167.78, and the Nifty was down 52.05 points or 0.95% at 5434.30. About 859 shares advanced, 1360 shares declined, and 1423 shares remain unchanged.

Nifty below 5450

The Indian markets opened on a weak note ahead of expiry this week. Asian markets shed in the range of 1-2%. Rally in dollar and concerns over Greece debt were two culprits for gap down opening. Results announced during the weekend were reflecting in stocks like Rei Agro and MOIL.

Banks, auto, metal and IT stocks were leading the bears from the front. All BSE Sectoral indices were trading in red barring FMCG.

At 09.21 hrs, the Sensex was down 156.91 points or 0.86% at 18169.18, and the Nifty was down 54.75 points or 1.00% at 5431.60. About 343 shares advanced, 600 shares declined, and 2699 shares remain unchanged.

Index heavyweight Reliance was trading at Rs 913.45 down 0.86% from its previous close of Rs 921.40. Refinery major HPCL was trading at Rs 357.60 down 0.91% from its previous close of Rs 360.90. Tech major Infosys was trading at Rs 2,843.90 down 0.23% from its previous close of Rs 2,850.55.

Why invest in an IPO?

Consider this, in 2009 the market saw almost Rs 50,000 crore raised from the primary market. In the year after that, that number actually doubled. But this year, the market has seen a paltry Rs 8000-9000 raised from the market. Many of them have been issues that are so small that often it is difficult to understand what the business are about and how exactly these companies should be valued.

CNBC-TV18’s special show Informed Investor, talks in more detail about the primary markets space and how to approach the potential initial public offerings (IPOs). It discusses which one is worth a subscription and which one looks like a skip.Why invest in an IPO?

Recommendations This Week (May 23 - May 27, 2011)

Company	Recommendation	CMP (Rs.)	Target Price (Rs.)	Stop Loss (Rs.)
ALOIND	Buy	24.9	27.0	23.9
DIVLAB	Buy	727.4	780.0	700.0
MAHMAH	Buy	690.9	750.0	655.8

Source from Edelweiss.in