Tuesday, April 28, 2009

BSE / NSE Shares analysis 28 April 2009


Bears on a rampage and pushed the benchmark Indian indices Sensex and Nifty down to a dismal close today.  The Sensex went crashing down to 10,961.76 and ended the day at 10,996.28 (provisional) with a huge loss of 375.57 points or 3.3%. The Nifty closed at 3360.10, down 109.90 points or 3.17%.  On concerns over the damage the swine flu could cause on global economy, investors across Asian and European markets were seen pressing heavy sales today.

Realty, metal, bank and capital goods stocks tumbled.Power, telecom, oil, FMCG and pharma stocks also suffered sharp losses.
It was a weak outing for several auto and IT stocks as well.  Midcap and smallcap stocks went sliding down on sustained selling pressure.  The market breadth was very weak at close.

DLF, Reliance Infra, Sterlite, Tata Steel and RComm lost 7% - 8%.  HDFC, ICICI Bank, Tata Motors, BHEL, Hindalco, L&T, SBI, Wipro, HDFC Bank, Tata Power, Bharti Airtel, ITC, RIL, HUL and ACC also declined sharply.  PNB, Reliance Capital, Suzlon, Power Grid, Axis Bank, Siemens, SAIL, Cairn India, ABB, Nalco, RPL, Ambuja Cements and Tata Comm finished with sharp losses.
BPCL bucked the trend and posted a sharp gain.

Syndicate Bank has posted a net profit of Rs 2066.40 million for the quarter ended March 31, 2009 as compared to Rs 1262.60 million for the quarter ended March 31, 2008. Total Income has increased from Rs 23764.00 million for the quarter ended March 31, 2008 to Rs 28756.70 million for the quarter ended March 31, 2009.  At Rs 56, the Syndicate Bank stock does look attractive. But a fall from this level looks likely in the very near term. One holding the stock can stay invested and look to buy more at sharp declines from here.

After running high for seven weeks at a stretch, the market appears to be facing some real pressure now.  There may be a recovery of sorts over the next few sessions, but it is advisable to stay cautious and refrain from taking big chances for the near run.  Long term investors, holding quality stocks, can stay invested with proper stop loss triggers in place.

The World Health Organization, acknowledging the growing threat of swine flu, raised its global pandemic alert, saying the disease is no longer containable.  The alarm level, increased to 4 from 3, is at its highest since the warning system was adopted in 2005, and the virus has been confirmed in the U.K., Mexico, the U.S., Canada and Spain.  With concerns over the impact of the deadly virus on the economy taking front seat now, markets across the globe have suffered sharp losses today. It is advisable to refrain from building up big positions for the time being.

Aditya Birla Nuvo's net profit for the January - March 2009 quarter has come down sharply.  The Company has posted a net profit of Rs 263.90 million for the quarter ended March 31, 2009 as compared to Rs 704.80 million for the quarter ended March 31, 2008. Total Income has increased from Rs 11569.50 million for the quarter ended March 31, 2008 to Rs 11937.40 million for the quarter ended March 31, 2009.  The stock has plunged 8.65% to Rs 535 on heavy selling at the counter.

ABB, the power and automation technology firm, has won substation orders worth around Rs 425 crore from Power Grid Corporation, to boost capacity and help improve grid reliability.  At Rs 490, ABB looks good for long term. One can take a modest exposure now and go in for more at sharp declines.  The stock had touched a low of Rs 344 in early March this year. For now, a stop loss can be placed near that level.

Jubilant Organosys has slipped by over 3% to Rs 116 on weak quarterly results.  The stock is likely to drift further down in the near term.  One holding the stock for long term, can stay invested with a stop loss near Rs 85, its 52-week low.
Fresh buying can be considered later.

Jaiprakash Associates (Rs 132) looks to be a good long term option.  Investors holding the stock can stay invested with a stop loss near Rs 90.  Fresh exposure can be considered if one is looking at long term. More can be bought at declines.

Dena Bank (Rs 38.90) can give fairly good returns over a medium run.  One can go in for this stock at current levels and add more of it at declines.  Vijaya Bank, Indian Bank, Andhra Bank, UCO Bank and Syndicate Bank can also be bought at declines.

Asian markets have suffered sharp losses today.  Earlier, after opening on a weak note, most of the Asian markets had rebounded sharply into the positive zone.  On fears the impact of swine flu will hamper global economic recovery, investors are seen pressing sales in global markets today.

Accumulate cement stocks in small quantites at sharp declines.  Ambuja Cements, Ultratech, Rain Commodities, ACC and Dalmia Cement can give fairly solid returns over a medium to long run.

One holding L&T can stay invested but fresh buying can be avoided for now.  The stock, currently traded at Rs 897, is likely to see a few weak spells in the near run.  Sharp declines can be treated as opportunities to buy this quality stock. However, buying in a staggered manner is advisable.

Pharma major Glaxo Smithkline Pharmaceuticals Limited has posted a net profit of Rs 1432.70 million for the quarter ended March 31, 2009 as compared to Rs 1212.70 million for the quarter ended March 31, 2008.  Total Income has increased from Rs 4342.50 million for the quarter ended March 31, 2008 to Rs 4609.80 million for the quarter ended March 31, 2009.  The stock is up nearly 2% at Rs 1190 now. One holding the stock with a long term view, can stay invested with a stop loss near its 52-week low of Rs 930.

KPIT Cummins has hit the 10% upper circuit at Rs 44.25 today.  The company has reported strong results for the quarter ended 31 March 2009.  A further upmove looks very likely and one willing to wait patiently can go in for the stock at current levels or slightly lower.

Biocon Limited has posted a net profit of Rs 241.40 million for the quarter ended March 31, 2009 as compared to Rs 620.30 million for the quarter ended March 31, 2008. Total Income has increased from Rs 2367.10 million for the quarter ended March 31, 2008 to Rs 2398.40 million for the quarter ended March 31, 2009.  The stock, up 3.4% at Rs 151 at present, is likley to see some weakness in the near run.  One looking at fresh exposure to the stock can wait for now. Investors holding the stock with a long term plan can stay invested with a stop loss near Rs 110.

Compiled and Brought to you by 

Equity Research Team

Intelligent Investor -
Invest Advisory Arm of

Ravina Consulting
Bangalore India

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