MOIL IPO Pricing attractive pricing band of Rs 340-Rs 375 ….but Allotment will be quite poor…Check out the Choice between MOIL and IFCI !

Government got Gold with Coal India’s IPO last month…It was a Win Win Situation all around…as Issue Size was huge the Retail Segment was oversubscribed 2.3 times and also benefited from the rollover of the unsubscribed Employee Quota …so allotments were good…max 199 shares at Rs 245 less 5% discount

And Now we have the IPO of MOIL….attractive Pricing Band of Rs 340-Rs 375….However the Issue Size is Small and the Retail Segment will be oversubscribed 20 times…..therefore the allotment will not be generous

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Sensex up 376 Points at 20445….Pre Diwali Fireworks fuelled by Coal and Wholesale Buying by FIIs….. while we Retail Indians await Diwali !

Sensex continues to seduce….is up 376 points today at 20445…Pre Diwali Fireworks fuelled by Coal perhaps !….a not so subtle reference to the Mega IPO of Coal India that opens on October 18….sentiment has to be kept sizzling

….and FIIs have already started celebrating Diwali a month or two early by intensifying wholesale buying of ‘Phatakas’ (stocks) and torching the Sensex past 20000 !…..while we Retail Indians yet await Diwali

….just think the Indian Sensex Torch has been carried by the FIIs in the relay past 20000…while most Indians have hardly participated in the Run and have just been cynical and wary spectators!….we are allowing the FIIs to ‘carpetbag’ us !

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What a Tuesday !..some Tales of it…..

Tuesday Tale No 1

Have you ever been extended an invitation on Sunday evening for a Tuesday Dinner by Close Friends?…and you land up at their Residence on Tuesday and find the Hosts had simply forgotten about their Invite ! ?

It happened to us yesterday…My Wife and I were invited by really close friends for Dinner…just the four of us at their Residence…..we were told to come by 9.30 pm…Social Etiquette meant we reach by 9.45 pm…we did with our small Gift..a Box of Chocolate Cookies …only to find the Hostess in her Night Gown and simply no trace of the Host….she was so embarrased….we could either have got mad or laugh it off……we chose to do the latter…we gave the Cookies and quickly exited !…The Hostess told us that she had told her Husband Host to remind her in the Morning for the Dinner and he had forgotten and so had she !

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IFCI at Rs 58…..Interest Reviving yet again…Rs 100 + inside a year ?

Several Times I had strongly recommended IFCI as a multibagger….. starting at Rs 16 in December 2006….It raced to Rs 130 levels as the Government called for bids to sell a Strategic Stake in it….A Joint Bid by Sterlite and Morgan fell through as the Government was not transparent on Conversion of Institutional Debt to Equity ……this would significantly have affected the Shareholding Break Up and diluted the Winning Bidders Holding…there was also Government reluctance to transfer Management Control

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You got to be Stock Selective at 15500 Sensex Levels…Markets again beginning to run ahead of Fundamentals

This is what I had blogged on October 27,2008

Some Pundits called Sensex of 12000 irrational…some saw irrationality at 10000…So what would they call 7500 ! ? …Begin to slide in now

We saw the Sensex again collapse to 8000 levels in March 2009 after reviving from October end 2008 lows…Then we had the Elections and the Budget and Sensex has crossed 15000 on good momentum….Just be cautious at these levels of 15500….It’s now at an 18 Multiple on FY 10 Sensex EPS…Market ,driven by Liquidity,is yet again living up to it’s reputation of displaying extremes…now it’s beginning to look like exuberance on future growth prospects and the feeling that the worst is behind us….Buoyed by encouraging Q1 FY 10 results so far,the Markets seem to have begun to run a trifle ahead of Fundamentals…that’s what I sense and how I feel….Expect Volatility…Be very Stock Selective  

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