Have you been seeing red lately? Well, what else would you see with Valentine’s Day upon us floating on a crimson tide? In great Indian assimilation mode, we have taken to this day bf romance in the unique manner in which we have taken to all sorts of days like Halloween’s Day, Friendship Day, Groundhog’s Day and so on. And in direct proportion to our desire to revel in Valentine’s Day comes the ire of our friendly neighborhood Shiv Sena moral police who are lurking behind bushes to snuff out any attempts by couples to canoodle. Indeed, the valiant Sena vows each year to smash shops selling Valentine’s Day cards and gifts. But will all this stop us from plunging into Valentine’s Day festivities with gusto? Not on your love life. But while we will defend to our death the right to celebrate love and take on the Sena on the beaches in trenches and in shopping malls, many of us seem to have forgotten exactly what the day is all about. So you can imagine how disconcerting it is to receive tender Valentine’s Day messages from one’s female friends and male friends, please note those one is not romantically attached to. While reading a few such messages, I happen to mention to the spouse how peculiar it sounded to me. Fearing that I was fishing for gifts, and seeing a heart-shaped hole in his bank balance, he denounced the whole thing as a clever marketing gimmick of which he would have no part. While the messages come thick and fast from odd quarters, I could not help but think of the origins of Valentine’s Day. Though there are differing versions, St. Valentine as he later become known, was put to death by the Romans in 269 AD for refusing to give up Christianity. Before he pegged off, he apparently wrote a letter to his jailer’s daughter with whom he had become friendly and signed it ‘from your Valentine.’ Now here we really take all this to heart. So for those who do not wish to stop at roses and candlelight, a spa experience may be in order. Or, a meal at an up market restaurant. Very much like the shakahari burger at McDonald’s, we have added our own bells and whistles to this day. Be sure, that come Valentine’s Day next year, we will have added [...]
Archive for February 23rd, 2008
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NOD TO PUBLIC ISSUE
February 23rd, 2008 
krishna Oil India Limited (OIL) has received nod from the Government of India to make an initial public offer (IPO) to mobilise resources to fund its growth plans in exploration and production of crude oil and natural gas. The IPO, which is awaiting SEBI approval, will be part of the year-long golden jubilee celebrations of the second largest oil company in the country that begins on February 18. Wire money online to India with Xoom.com for as low as $4.99. Chairman and managing director, OIL, M.R. Pasrija informed that the government, which holds 98.13 per cent stake in the company has approved OIL’s proposal to issue IPO that will constitute 11 per cent of the fully diluted post-issue paid up capital of the company. Out of these, one per cent will be on the offer for the OIL employees. “OIL will offer an IPO of 2,64,49,982 equity shares of Rs 10 each for cash at a price to be decided through book-building process. The shares that will be offered are proposed to be listed on the NSE and the BSE,” Pasrija informed. Moreover, the government will also disinvest another IO per cent of its holding in OIL to the Indian Oil Corporation (IOC) and Hindustan Petro-Chemicals Limited (HPC). This will leave the government with 78.5 per cent of stake after the issue of shares and disinvestment. Opening up of shares to public and disinvestment are aimed at mobilising OIL’s plan outlay of Rs 4,575 crore for two years to fund its ambitious ventures in exploration and production activities. OIL was incorporated on February 18, 1959, and subsequently transformed into a wholly owned the Government of India enterprise in 1981. It is now pursuing its aspiration to become a global exploration and production player on the strength of its core competency in exploration, production and transportation of crude oil and natural gas. The company now produces 10 per cent of the total crude oil produced in the country and 7 per cent of the country’s total natural gas production. It has a presence in seven countries -Libya, Nigeria, Gabon, Iran, Yemen, Sudan and East Timor – in joint venture projects in areas of exploration, production and transportation. It won highest six blocks offered under the sixth round of bidding offered’ by the Government of India under NELP. Out of these two blocks are located in Assam, two in Rajasthan, one [...]
Look beyond sentiment to fundamentals
February 23rd, 2008 krishna Since the disastrous January derivatives expiry, the technicals of the Indian market would appear to have improved considerably, at least in a relative sense. The froth in the futures market has been washed away with the stock futures position standing at only Rs 30,000 crore, a fraction of what it had risen to last month. The other ostensible reason for the January crash–constricted money supply because of IPO subscription–has also been corrected. IPO refunds are in from both Reliance Power and Future Capital. In fact, even the listings are done so the flippers have had an opportunity to book out. Curiously, none of this has led to any visible relief for the market, contrary to general expectations. Despite improved technicals, the trend remains southward, volumes are pathetic and every rally is getting sold into. Wire money online to India with Xoom.com for as low as $4.99. The obvious culprit is sentiment. Local sentiment has been crippled by the savage January sell-off and more recently by the dismal events of the IPO market. Global sentiment is not much better with investors getting into a shell fearing the onset of a recession-fuelled bear market. The not-so-visible and talked-about reason is core fundamentals. One wonders though whether the market, in its wisdom, is bracing itself for disappointment on the fundamental front. So far, the market is assuming 18-20 percent earnings growth this year. Given that, the current price-earnings ratio of 16 times 200809 seems comfortable. However, as this growth–led by sectors like metals, realty and power—slows down, valuations will need to be revisited. Particularly so, if other emerging markets see a contraction in valuations led by bearish global constraints. Could that be the reason for stocks getting de-rated in many sectors? I hope that is not the case but am inclined not to close my mind to that possibility. Analysts are often in denial when the rot first starts seeping in. Stocks move first, headlines follow later. Hopefully, it is just sentiment, not fundamentals, where the problem lies.
