Kotak Predicts Revival in a year:

Samsung Electronics Co. said third-quarter net profit tripled to a record amid increased sales of flat screen TVs and mobile phones and higher prices for computer memory chips. The Crude are now moving towards $82 per barrel mark once again.

Oil prices hovered above $80 a barrel Friday in Asia after the U.S. economy snapped four straight quarters of contraction, suggesting demand for crude will improve.

With the US economy coming out of recession, there should be no looking back for the bulls--a strong rally in the global and domestic markets is in the offing. I had earlier mentioned of an winter rally rally starting from 1st or 2nd Week of November, 2009. Yesterday, the US Commerce Department, said the U.S. economy grew at a 3.5 percent annual pace in the third quarter, the best showing in two years and breaking four straight quarters of declines. This should be the music to all those who have bought shares in the last few days...Just Enjoy!!

Today Sanguine Media Services Ltd, Northgate Technologies Ltd are coming up with results and according to the sources close to me, Q2FY10, will be a little better than Q1FY10, showing smart improvemement on their fundamentals. Country Club India Ltd recommended yesterday, is looking good for the short to medium term play. Yesterday's buy call on Rolta Ltd almost hits the buyer freeze. Moreover, Accentia Technologies Ltd, Energy Development Ltd, XL Telecom and Energy Ltd, Sanguine Media Services Ltd, JVL Agro Ltd, Cords Cable Industries Ltd and Faze Three Ltd, etc,. are also looking good for the short term play.

MUMBAI: Mergers and acquisitions in India may accelerate within 12 months, after the slowest year in five, as tightening competition leads to “intense pain,” said Uday Kotak, head of the nation’s top-ranked takeover adviser.

Telecommunications companies and airlines are among industries that may lead the wave of consolidation because multiple operators are competing in the same sectors, he said.

“The phase of companies making a choice between mortality and consolidation is about a year or so away,” Kotak, 50, said in an interview at his Mumbai office yesterday, without identifying any companies.

“We will see a very significant pickup in M&A activity sometime nine to 12 months from now.”

The steepest rally in Indian equities in six years helped companies, including some of

the nation’s family-controlled businesses, raise funds and delay consolidation, Kotak said. The value of takeovers in India declined to $14 billion this year from $49.3 billion in 2008, according to data compiled by Bloomberg.

“The last six months in the capital markets have enabled some of the companies which may have had issues down the road, even of bankruptcy, getting equity,” Kotak said. Still, as investors become more discerning, “it’ll force consolidation.”

SpiceJet Ltd. Chief Executive Officer Sanjay Aggarwal said Oct. 28 consolidation in the airline industry is “inevitable” because too many carriers are competing for too few fliers. The airline, backed by billionaire Wilbur Ross, may raise as much as $50 million to fund expansion, he said.

Reliance, Satyam Deals:

Kotak Mahindra Capital Co. advised Mukesh Ambani’s Reliance Industries Ltd. on increasing a stake in its petroleum unit in a stock transaction. It also counseled Tech Mahindra Ltd. on its $352 million purchase of a controlling stake in fraud-hit Satyam Computer Services Ltd.

Those transactions helped vault Kotak Mahindra Capital past Citigroup Inc. and Barclays Capital, giving the Mumbai-based investment bank a market share of 21% with mergers and acquisitions worth $2.85 billion, according to Bloomberg data.

In the market for managing share sales, Kotak is ranked fourth behind New York-based Citigroup. Indian companies sold 582 billion rupees of stock in rights offers, private placements and new and secondary sales. The benchmark Sensitive Index advanced 62% this year, fueled by $14.4 billion of purchases by overseas funds.

“Capital markets will be more discerning in terms of the kinds of companies which will be able to raise capital,” Kotak said. “The companies have rightly taken advantage to make sure their balance sheets get stronger.”