Having emerged as one of the top performers in the equity markets in 2007, India became the fourth worst performer among all the emerging markets in the first month of 2008, with a loss of close to 16 per cent, according to financial market data provider Standard and Poor's.
"If investors thought the market could only go up, January's wake-up call pulled them back into reality," S&P said in its monthly update on world equity markets. The global stock markets lost a whopping US$5.2 billion as bearish sentiment prevailed across both emerging and developed markets to mark one of the worst ever starts to a new year, S&P said.
"There were few safe havens in January as 50 of the 52 global equity markets ended the month in negative territory, with 25 of them posting double-digit losses," S&P's Senior Index Analyst Howard Sliverblatt said.
While developed markets registered a loss of 7.83 per cent, the loss was even bigger at 12.44 per cent in emerging markets during the month. All the 26 developed markets posted negative returns, with 16 of them losing over 10 per cent. The overall trend in emerging markets was also disappointing despite gains seen by Morocco (10.17 per cent) and Jordan (3.11 per cent).
Among emerging markets, Turkey was hit the hardest losing 22.70 per cent followed by China at 21.40 per cent. Russia lost 16.12 per cent, while India lost close to 16 per cent, S&P said.
"High volatility, quick turnarounds in both the market and investor sentiment, and drastically lower stock prices prevailed throughout the month." Silverblatt said. Among developed markets, the US and UK lost 6.07 and 8.85 per cent respectively.
Public Issue Open: February 04, 2008 to February 07, 2008. Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO). Public Issue Size: 117,389,914 Equity Shares of Rs. 10/-»» Face Value: Rs. 10/-. Public Issue Price: Rs. 725/- to Rs. 850/- Per Equity Share . Maximum Subscription Amount for Retail Investor: Rs 100,000/-. Listing: BSE, NSE.
Analysts say that RPower will have a market capitalisation of Rs 101700 crore compared with NTPCs current market capitalisation of Rs 221630 cr. While RPower has plans to implement 28,200-MW capacity BY 2016 with no assured returns in many projects and little experience in large project execution, NTPC already has 27,904-MW capacity with plans to set up additional 22,100 MW. Most of NTPCs projects enjoy assured returns and it has one of the best track records of power-project execution. From this what do we study??? If Rpower is more than 400 on listing day NTPC should also be more than 400. This is a minimum assumption, so buy NTPC as much as you can and be ready to enjoy high profits within short time.
