Pulses futures hit due to ban on exports
Mumbai: The Government's move to ban exports of pulses and allow private sector companies to import wheat, have driven prices of wheat and pulses futures down on the national exchanges. Futures prices of pulses on the Multi-Commodity Exchange of India Ltd (MCX) and the National Commodity and Derivatives Exchange Ltd (NCDEX) softened by nearly 4-5 per cent on Thursday on panic selling by operators.

Chana and tur July contracts on MCX and NCDEX hit the 4 per cent lower circuit on speculative selling following the Government's decision to halt exports of pulses with immediate effect. Chana July contracts on MCX opened at Rs2,570 a quintal and touched a day's low of Rs2,460. The contract finally ended lower at Rs2,462, down by Rs 108 over the day's opening rate, while the same contracts on NCDEX also fell Rs 125 to end at Rs2,503. Similarly, tur July contracts prices fell by about Rs50-70 per quintal on both the platform.

The immediate reaction is bearish for wheat as imports will result in increased supplies which will dampen prices. As sentiment is bearish, analysts said prices are expected to soften further in the near term and wheat prices could even test levels of Rs820-830 a quintal.
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Oppenheimer lowers India exposure
Mumbai: Oppenheimer & Company runs a large pool of money in global emerging markets, including India, where they have fairly a significant stake. The company has lowered its exposure to India.

Michael Metz the chief investment strategist of the company said he believes that the Indian market may not test new highs now and will trade in a rangebound manner and does not see Indian market as a good bargain right now. According to Metz the market was moving mostly due to leveraged participants, who were momentum-oriented.

He said the correct entry levels in the Indian markets exist at lower levels than at present as the fundamentals are still good.
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Blue Bird files IPO prospectus with SEBI
Mumbai: Blue Bird (India), which manufactures notebooks, office stationery and print publications, has filed its draft red herring prospectus with the SEBI for its initial public offering of equity shares.

The company proposes to offer one crore equity shares of Rs10 each for cash at a premium to be decided through the book-building process. Of the shares on offer, 50 per cent is being reserved for allotment to qualified institutional bidders and 15 per cent to non-institutional investors.

The remaining 35 per cent is reserved for allotment to retail investors on a proportionate basis. The issue will constitute 28.57 per cent of the fully diluted post-issue equity capital of the company.

The company plans to develop facilities in south India during fiscal 2007 and 2008, and increase marketing efforts and penetration in sub-Saharan Africa.

DSP Merrill Lynch is the sole book running lead manager to the issue.
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