Wednesday, May 20, 2009

Market Voices 20 May 2009

It was a day of volatile trade with profit booking in the large caps and major buying in midcaps and smallcaps today. Sensex shut shop at 14060, down 241 points and Nifty at 4270, down 48 points from the previous close. CNX Midcap index was up 5.77% and BSE Smallcap index was up 8.86%. The market breadth was positive with advances at 1171 against declines of 104 on the NSE. Top Nifty gainers included Tata Motors, Tata Steel and Hindalco while losers were Reliance Capital, HDFC and DLF. In the midcaps space, buy Marico and Godrej Industries (in FMCG); buy India Cements, Madras Cement, Orient Paper (in cement sector) and Nagarjuna Constructions and IRB Infrastructure (infra space), says Hemang Jani of Sharekhan, on NDTV Profit. The Indian market could move higher by another 10-15%, says March Faber, investment guru, on NDTV Profit. The market may see some consolidation and investments are likely to return post correction in July, he feels. India and China may emerge major investment destinations for the long term, he adds. Nifty support is seen around 4110-4200 and target at 4460, says Anu Jain of India Infoline on CNBC TV18. This is a good opportunity to buy large cap stocks for the long term in any correction, she adds. Nifty range for the May series could be 4200-4550, she feels. Hold Reliance Communications with a target of Rs 450 and stop loss of Rs 260, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 308, down 2.3% on the BSE. The broader market outperformed the benchmark indices today as midcaps and smallcaps rallied to play catchup. Sensex closed at 14041, down 260 points (provisional) and Nifty at 4259, down 58 points (provisional) from the previous close. CNX Midcap index was up 6.07% and BSE Smallcap index was up 9.02%. The market breadth was positive with advances at 1177 against declines of 100 on the NSE. Hold Shiv Vani Oil with a target of Rs 400 where one can book 50% profit and ride on till the next target of Rs 520, says Ashwani Gujral, tehnical analyst, on CNBC Awaaz. Keep a stop loss of Rs 200, he adds. The stock is currently trading at Rs 281, up 11% on the BSE. When the market moves the first momentum is seen in largecaps and today the midcaps and smallcaps are playing catch up, says Deven Choksey of KR Choksey, on CNBC-TV18. Since investors are feeling left out, they are now getting into the market, he adds. Nifty short-term range is 4150-4500, he adds. The market continues to see a good show from the midcaps and smallcaps space. Sensex is trading at 14058, down 243 points and Nifty is at 4274, down 43 points from the previous close. CNX Midcap index is up 5.34% and BSE Smallcap index is up 8.45%. The market breadth is positive with advances at 1164 against declines of 106 on the NSE. Buy Reliance Communications with a target of Rs 320 and stop loss of Rs 298, says Tejas Nandu of Unicorn Investment, on CNBC Awaaz. The stock is currently trading at Rs 307, down 2.5% on the BSE. Hold Reliance Power with a target of Rs 190 where one can book 50% profit and ride on till the next target of Rs 250, says Ashwani Gujral, tehnical analyst, on CNBC Awaaz. The stock is currently trading at Rs 171, up 6% on the BSE. Buy NDTV with a target of Rs 135 and stop loss of Rs 121, says Tejas Nandu of Unicorn Investment, on CNBC Awaaz. The stock is currently trading at Rs 129, up 9.7% on the BSE. Buy Tata Chemicals with a target of Rs 236 in 12 months, says Sumant Kumar of Karvy Stock Broking, on CNBC Awaaz. The stock is currently trading at Rs 217, up 8.6% on the BSE. Buy PFC with a target of Rs 224 and stop loss of Rs 205, says Tejas Nandu of Unicorn Investment, on CNBC Awaaz. The stock is currently trading at Rs 211, up 6.2% on the BSE. Hold Power Grid with a stop loss of Rs 100, says Simi Bhaumik, technical analyst, on Zee Business. The stock is currently trading at Rs 114, up 0.4% on the BSE. Buy SAIL with a target of Rs 178 and stop loss of Rs 163, says Tejas Nandu of Unicorn Investment, on CNBC Awaaz. The stock is currently trading at Rs 164, up 2% on the BSE. Global markets are trading quiet. Our market is trading weak but midcaps and smallcaps continue to outperform. Sensex is trading at 14050, down 251 points and Nifty is at 4262, down 55 points from the previous close. CNX Midcap index is up 4.77% and BSE Smallcap index is up 7.51%. The market breadth is positive with advances at 1154 against declines of 116 on the NSE. Hold Aban Offshore with target of Rs 1000 after which there would be a fresh move, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 840, she adds. The stock is currently trading at Rs 912, up 0.5% on the BSE. Karvy Stock Broking maintains a buy call on Nitin Fire with a target of Rs 360, reports CNBC Awaaz. The stock is currently trading at Rs 271, up 14% on the BSE. Hold Suzlon with target of Rs 120-125, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 80, she adds. The stock is currently trading at Rs 93, up 4% on the BSE. SMC Global Securities maintains a buy call on Hindustan Motors with a target of Rs 25 and stop loss of Rs 15, reports CNBC Awaaz. The stock is currently trading at Rs 19, up 8% on the BSE. Hold HCC with target of Rs 110, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 86, she adds. The stock is currently trading at Rs 99, up 18.23% on the BSE. Short-term traders exit Ranbaxy and invest elsewhere, says Ashish Kapur of Invest Shoppe on NDTV Profit. Long-term investors may hold, he adds. The stock is currently trading at Rs 219.10, up 4.5% on the BSE. The market has moved into weak territory after a morning of choppy trade. But midcap and smallcap stocks continue to outperform. The Asian markets are trading mixed and European markets have opened weak. Sensex is trading at 14107, down 205 points from its previous close, and Nifty is at 4280 down 38 points. CNX Midcap index is up 4.4% and BSE Smallcap index is up 6.8%. The market breadth is positive with advances at 1127 against declines of 127 on the NSE. Exit DLF and buy again when it comes down to Rs 280-290, says V Sundar Raja, technical analyst, on NDTV Profit. The stock is currently trading at Rs 357.60, down 7% on the BSE. Buy TCS on decline, says E Mathew, technical analyst, on CNBC TV18. On the charts, this stock is looking strong, he adds. The stock is currently trading at Rs 692.80, up 3.1% on the BSE. Buy Cairn India with long-term view, says Ashish Kapur of Invest Shoppe on NDTV Profit. The downside risk in this stock is minimum and the fundamentals of the company are good, he adds. The stock is currently trading at Rs 220.40, up 1.1% on the BSE. Buy Walchandnagar with long-term target of Rs 300-350, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 157.65, up 9.9% on the BSE. Hold Nalco with target of Rs 400, says V Sundar Raja, technical analyst, on NDTV Profit. It has support at Rs 320, he adds. The stock is currently trading at Rs 365.70, up 1.7% on the BSE. Buy IVRCL Infra on dips with targets of Rs 296 and then 330, says E Mathew, technical analyst, on CNBC TV18. Keep strict stop loss of Rs 225, he adds. The stock is currently trading at Rs 268.55, up 5.6% on the BSE. The market may stay in a 4000-4800 band till the budget, says Vibhav Kapoor of IL&FS on CNBC TV18. He believes that there is still one more leg-down to go for global markets when the Nifty could hit 3500 levels. He advises investors to adopt a strategy of 'buy and hold'. One could go stock-specific, sector-specific on midcaps and wait for a correction to accumulate largecaps, he adds. Hold ONGC with long-term view for good returns, says Ashish Kapur of Invest Shoppe on NDTV Profit. Buy more if it comes down to Rs 800-850 during a correction in the market, he adds. The stock is currently trading at Rs 1000, up 0.6% on the BSE. Buy Godrej with target of Rs 200 in the coming months, says MB Singh, technical analyst, on Zee Business. Keep stop loss of Rs 90, he adds. The stock is currently trading at Rs 157.95, down 1.6% on the BSE. At noon, the market is trading flat, seeing some bit of profit taking. Sensex is trading at 14296, down 10 points from its previous close, and Nifty is at 4330, up 12 points. CNX Midcap index is up 4.9% and BSE Smallcap index is up 7%. The market breadth is positive with advances at 1130 against declines of 106 on the NSE. Buy DCB with target of Rs 48, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 28, he adds. The stock is currently trading at Rs 36.70, up 9.1% on the BSE. Buy Suzlon Energy at Rs 80-90 with targets of Rs 118 and then Rs 150, says MB Singh, technical analyst, on Zee Business. Keep stop loss of Rs 71, he adds. The stock is currently trading at Rs 94.50, up 5.2% on the BSE. IVs (Implied Volatility) jumped yesterday on back of protection buying at 4000 and 4100 strikes, says Atul Badkar of Edelweiss Securities on CNBC TV18. He thinks that an intermediate correction to 4150 is likely, but medium-term uptrend remains intact. Large caps may correct, while midcaps may catch up, he adds. He likes HDIL and Hindustan Oil Exploration. Hold JSL with target of Rs 85-90 in one year, says Rajesh Agarwal of CD Equisearch on CNBC Awaaz. The fundamentals of this stock are good, he adds. The stock is currently trading at Rs 71, up 6.3% on the BSE. Hold Reliance Power with target of Rs 190, says Prakash Gaba, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 165, he adds. The stock is currently trading at Rs 173.50, up 6.8% on the BSE. Buy IDBI at Rs 80 with targets of Rs 95 and then 110, says MB Singh, technical analyst, on Zee Business. Keep stop loss of Rs 69, he adds. The stock is currently trading at Rs 88.20, up 4.8% on the BSE. The market can rally further ahead of the budget, says Devesh Kumar of Centrum Broking on CNBC TV18. He believes that the Sensex can go up to 15000 in the near term. Buy Jet Airways at Rs 230-260 in staggered fashion with target of Rs 350, says MB Singh, technical analyst, on Zee Business. Keep stop loss of Rs 215, he adds. The stock is currently trading at Rs 272, up 11.3% on the BSE. Buy Maharashtra Seamless at Rs 203-220, says E Mathew, technical analyst, on CNBC TV18. Keep target of Rs 305-316, he adds. The stock is currently trading at Rs 240, up 5.9% on the BSE. Hold HDIL with targets of Rs 330 and then Rs 400, says MB Singh, technical analyst, on Zee Business. Keep stop loss of Rs 265, he adds. The stock is currently trading at Rs 298.75, up 4.6% on the BSE. Buy Indiabulls Real Estate with target of Rs 252, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 214.35, up 7.3% on the BSE. Buy Kingfisher Airlines only for trading purpose, says P Phani Sekhar of Angel Broking on CNBC Awaaz. Investors should away from this stock, he adds. It is currently trading at Rs 50.35, up 13.4% on the BSE. Buy Sterlite Industries with short-term stop loss of Rs 530, says Pradeep Surekha, technical analyst, on Zee Business. Buy more when it comes down to Rs 450, he adds. The stock is currently trading at Rs 560, up 1.5% on the BSE. Buy IVRCL with target of Rs 320, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 269, up 5.8% on the BSE. Buy HCC with target of Rs 115-120, says Ashish Chaturmotha of Anand Rathi Securities on NDTV Profit. The stock is currently trading at Rs 99.10, up 18.1% on the BSE. Buy Tata Tea at Rs 690, says Sudarshan Sukhani, technical analyst, on CNBC TV18. Keep a stop loss of Rs 20 below the buying price, he adds. The stock is currently trading at Rs 698.50, up 1.2% on the BSE. Buy Kirloskar Ferrous with intra-day target of Rs 23, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 18, he adds. The stock is currently trading at Rs 21.35, up 12.2% on the BSE. Buy YES Bank with intra-day target of Rs 145, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 125, he adds. The stock is currently trading at Rs 131.30, up 1.6% on the BSE. The market opens expectedly on a negative note today. Earlier, the US markets closed mixed and the Asian markets are trading mixed, too. Sensex is trading at 14226, down 76 points from its previous close, and Nifty is at 4302, down 16 points. CNX Midcap index is up 1.3% and BSE Smallcap index is up 1.4%. The market breadth is positive with advances at 498 against declines of 175 on the NSE. Sell HDFC at Rs 2370 with target of Rs 2315, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 2410, she adds. The stock is at Rs 2344.30, down 1.9% on the BSE. Intelligent Investor Bangalore - India For paid services - intellinvestor@gmail.com follow - www.twitter.com/SmartInvestor --------- BSE / NSE Shares analysis 20th May 2009 The Sensex ended a highly volatile session with a big loss today as investors chose to book profits in heavyweight stocks.There were some smart gainers in the Sensex, but losses posted by some blue chips turned out to be far more pronounced. Global cues were mixed today. The statement from the Prime Minister elect Dr Singh did trigger some buying but investors appeared keen on booking profits at certain counters. The Sensex ended the day at 14,041.34 (provisional) with a loss of 260.69 points or 1.82%. In intra-day trades, the barometer hit a high of 14,405.51 and a low of 13,976.49. The Nifty moved in a range of nearly 120 points and closed at 4259.70, down 58.75 points or 1.36%. Oil, bank, telecom majors and select IT and realty stocks closed sharply lower. Consumer durables stocks had a bright session today. Metal, auto, pharma, capital goods and power stocks attracted attention. ICICI Bank, DLF, Bharti Airtel, HDFC, BHEL, Sun Pharma, RIL, HDFC Bank, RComm, Infosys and ITC ended sharply lower today. Tata Motors went on a long trip up north and gained over 19%. M&M and Maruti Suzuki also closed with strong gains. Tata Steel spurted nearly 13%. Hindalco, JP Associates, Ranbaxy, Reliance Infra, ACC and Wipro ended with handsome gains. HUL, SBI, NTPC and L&T also closed on a firm note. Ambuja Cements, ABB, RPower, Siemens, HCL Tech, Suzlon Energy, Unitech, SAIL and Cairn India closed with sharp gains. Reliance Capital, Axis Bank, Hero Honda, Idea Cellular and RPL declined sharply. Tata Motors has had a splendid run today. The stock (cmp Rs 362) has come a long way from a dismal low of Rs 122 it had touched in mid November 2008. Though some weak spells are not ruled over the next few sessions, investors holding the stock for long term can stay invested. Fresh buying can be considered at 30 - 35% down from current levels. 3:10 PM: Crompton Greaves Limited has posted a net profit after tax of Rs 1308.80 million for the quarter ended March 31, 2009 as compared to Rs 1030.70 million for the quarter ended March 31, 2008. Current year figures include the results of the subsidiaries acquired during the year. Consequently, the figures for the current year are not comparable with the figures of the previous year. The Crompton Greaves stock is a good one for long term. The stock, traded at Rs 240 at present, can be picked up in small lots at lower levels. Bharat Forge has posted a net profit of Rs 611.30 million for the quarter ended March 31, 2009 as compared to Rs 828.50 million for the quarter ended March 31, 2008. Total income has decreased from Rs 5923.10 million for the quarter ended March 31, 2008 to Rs 3068.40 million for the quarter ended March 31, 2009. Despite a fall in net profit, the stock is trading in the positive territory at Rs 176 (up 5.6%). Shipping industry stocks have surged higher today on higher freight rates. SCI, Bharati Shipyard, Mercators Lines, ABG Shipyard, GE Shipping and Essar Shipping are in demand. One holding these stocks can stay invested for now. However, one should avoid building up heavy positions at current levels. Hindustan Construction Company (Rs 99) is having a nice run. The stock has vaulted nearly 19% today and a further upside looks likely in the near term. The stock may face some stiff resistance near Rs 120. One can stay invested in the stock with a stop loss near Rs 60. Small quantites can be picked up at declines from here. HCL Technologies (Rs 165) can be retained for long term. One willing to wait patiently for good returns from the stock, can pick up small quantities at declines from here. A correction of 15 - 20% looks very likely in the near run. One can look at buying Cairn India (Rs 220) at declines. The stock is likely to give fairly good returns over a medium term as crude oil prices are expected to move up sharply once the economy sees some strong signs of recovery. Investors with a fairly good appetite for risk can try this stock at 10 - 15% down from current levels. Short term or medium term investors having long positions in realty, capital goods and metal stocks can book some profits at current levels. Power Grid Corporation, NTPC and Areva look good from a long term point of view. These stocks are likely to see some weak spells over the next few sessions and sharp dips can be treated as opportunities to accumulate for long term. Four Soft's web based software solution 4S eCustoms SAGITTA has been certified by the Netherlands Customs Authorities for Sagitta Import and Export compliance. Sagitta is an automated declaration platform for handling custom affairs for Import and Export shipments in the Netherlands. All the modules of the solution are designed to meet the national and local proactive regulatory customs filing, compliance and documentation requirements of freight forwarders, logistics providers, and customs brokerage companies. The stock is trading 3.2% up at Rs 20.20. One holding the stock can stay invested. Fresh buying can be considered at Rs 16 - 17 levels. Metal, cement and infrastructure stocks can be picked up at sharp declines if one is looking for some solid gains over a medium to long term. The government is likely to give a strong boost to infrastructure sector and once that happens, stocks from these sectors are likely to move up sharply. One should stay tuned to the market and lap up quality stocks from these sectors at sharp dips. Intra-day traders with a fair appetite for risk can try Yes Bank (cmp Rs 135) if it crosses 137 and stays firm for a while. The stock can then move on to Rs 146 - 148. A stop loss can be placed near Rs 130. Jain Irrigation Systems has bagged the Rs 65.1 crore order of Balh Valley Irrigation Project in Himachal Pradesh from the Department of Irrigation and Public Health, HP. The Jain Irrigation stock spurted to Rs 598 this morning and is currently trading at Rs 586, up nearly 6% over its previous close. One holding the stock can stay invested. The mood is likely to remain cautious for a major part of the session today. There may be some strong buying in a few blue chips but the upside looks somewhat limited today amid mixed global cues. Sector Watch Realty, bank and capital goods stocks that posted strong gains over the past couple of sessions, are likely to attract some profit taking. IT stocks may rebound and regain a bit of lost ground. Select metal and pharma stocks may edge higher. Scrip Watch Tata Steel may see action on reports that the company has secured a Rs 2000 crore loan from Life Insurance Corporation. The funds will help the steel maker make additional equity infusions into its UK subsidiary. Pharma major Dr Reddy's Laboratories is likely to be in focus as the company plans to spend around Rs 750 crore for establishing two special economic zones in Andhra Pradesh. JSW Steel has announced that it may close down its US mills for three months from June due to poor demand but carry out up gradation & modernization works in the interim in anticipation of better times ahead. The company, however, has ruled out any job cuts because of this closure. The Uttar Pradesh Power Corporation and its Kanpur arm Kanpur Electricity Supply Company have executed the long-awaited privatization of power distribution in the city. In this regard, Kesco inked the memorandum of understanding with Torrent Power, which has already undertaken the work of power distribution in Agra. The Torrent Power counter is likely to be in focus today. Bajaj Auto Finance, Adani Enterprises, Bharat Forge, Pidilite Industries, Punjab National Bank, Crompton Greaves, Mundra Port, LMW and MphasiS will be announcing their quarterly results today. Macro and Market Factors The Wall Street ended flat yesterday and the mood in most of the Asian markets is somewhat cautious today. With no significant cues from global markets, investors back home may have to look for local triggers. On expectations the new government will soon come out with some measures to boost growth, a section of market participants may build up long positions. Even as FIIs pumped in funds, domestic mutual funds were seen booking profits yesterday. For the market to gain some upside momentum, institutional investors will have to stay tuned with their buy orders. Intelligent Investor Bangalore - India For paid services - intellinvestor@gmail.com follow - www.twitter.com/SmartInvestor ----- Closing Bell 20th May 2009 The Indian markets continued their downward trend during the final hour of trade as profit booking amongst the index heavyweights led the BSE-Sensex to end the day with losses of around 240 points. The NSE-Nifty closed lower by about 50 points. However, stocks from the mid-cap and small-cap space ended higher by 6.3% and 9.1% respectively. Buying activity was witnessed in stocks from the metals and auto sectors, while stocks from the banking and energy spaces ended the day on a weak note. Other Asian markets ended the day on a mixed note. The European indices are currently trading in the green. Rupee was trading at 47.6 against the US dollar at the time of writing. Capital goods stocks ended the day on a firm note led by Praj Industries, Punj Lloyd and Areva T&D. Crompton Greaves announced its FY09 results today. The company recorded a topline growth of about 28% YoY, while its operating profits grew by 33% YoY. The company witnessed an operating margin expansion of 0.5% YoY (to 11.5%), mainly on account of lower cost of traded goods (as a percentage of sales). Raw material cost, on the other hand, increased by 0.3% YoY (as a percentage of sales). Profits for the year grew by 38% YoY. Apart from a good performance at the operating level, lower depreciation and interest costs helped the company accounted for the growth in earnings. Steel stocks ended the day on a firm note led by Tata Steel, JSW Steel and SAIL. Tata steel ended the day on a strong note on the back of news that it has secured loans to the tune of Rs 20 bn from the Life Insurance Corporation of India (LIC). As such, LIC will subscribe to a portion of Tata Steel’s non-convertible debentures (NCDs). It is believed that the issue carries an interest rate of 10.5% per annum. It may be noted that Tata Steel has plans to raise a total of Rs 30 bn through the issue of NCDs. The company plans to utilise a portion of the proceeds to prepay its debt obligation and the balance will be retained to enhance the capital base of its UK subsidiary. The Centre for Monitoring Indian Economy (CMIE) expects the WPI inflation rate to remain at 0.1% during FY10. Inflation for FY09 stood at about 8.3%. CMIE has predicted that the price of fuel products and manufactured goods are set to fall during the year, while those of primary articles will remain higher. In addition, it has projected that a lower money supply growth and an increase in capacity expansions during FY10 will keep inflation at a lower level. The markets continued their southward journey during the previous two hours of trade on account of sustained selling activity witnessed across large cap stocks. However, midcap and smallcap stocks remained firmly in the green. Stocks from the auto, steel and power sectors are leading the pack of gainers, while select stocks from the banking, telecom and engineering sectors are trading weak. The overall advance to decline ratio is posed at 7 to 1 on the BSE. The BSE-Sensex and NSE-Nifty are trading weak, down by around 200 points and 40 points respectively. However, the BSE-Midcap and BSE-Smallcap indices are trading higher, up by around 6% and 8% respectively. The rupee is trading at 47.58 to the dollar. Energy stocks are trading mixed. While HPCL and BPCL are trading lower, ONGC and Indian Oil are trading higher. As per a leading business daily, the government has issued bonds worth Rs 103 bn to the three public sector oil marketing companies (OMCs) Indian Oil, HPCL and BPCL in order to partially compensate for their revenue losses in FY09 due to government determined prices. Indian Oil received bonds of around Rs 62 bn, whereas BPCL and HPCL were allotted bonds worth Rs 20.3 bn and 20.7 bn respectively. It may be noted that the government controls the prices of four petroleum products petrol, diesel, kerosene and cooking gas. The prices for these products have often been below the cost, resulting in a revenue loss of around Rs 1 trillion during the fiscal. The government has so far issued oil bonds worth Rs 610 bn to the OMCs. Furthermore, the OMCs have also received a discount of Rs 320 bn from the upstream companies like GAIL and ONGC. Automobile stocks are trading mixed. While Tata Motors and Maruti are trading higher, Bajaj Auto and Hero Honda are trading lower. As per a leading business daily, Tata Motors has raised around Rs 12.5 bn (US$ 260 m) by selling non convertible debentures (NCDS) to LIC in order to partly fund the refinancing of bridge loan taken for the Jaguar Land Rover (JLR) acquisition. The NCDs bear a coupon rate of 10% and have a maturity of seven years. It may be noted that Tata Motors raised a bridge loan of around US$ 3 bn for the JLR acquisition in FY09. The company had already repaid bridge loan of around US$ 1.12 bn through funds raised from the rights issue and sale of stakes in subsidiaries. The company has plans of raising around Rs 40 bn (US$ 840 m) through NCDs, having multiple tenures ranging from 2 to 7 years. The Indian markets traded below the dotted line during the previous two hours of trade on the back of intense selling activity among the index heavyweights. Stocks from the engineering, metals and auto space are trading firm, while select banking and pharma stocks are trading weak. The overall advance to decline ratio is poised at 6.1 to 1 on the BSE. The BSE-Sensex and NSE-Nifty are trading weak, down by around 150 points and 35 points respectively. However, the BSE-Midcap and BSE-Smallcap indices are trading higher, up by around 5% and 6% respectively. The rupee is trading at 47.71 to the dollar. Engineering stocks are trading firm, led by Thermax, Punj Lloyd and L&T. As per a leading business daily, Punj Lloyd plans to exit its joint venture in the real estate business by selling its entire 50% interest to its equal partner, Ramprastha group. It may be noted that, the company had made initial investments to the tune of Rs 1.8 bn in the joint venture. The joint venture was supposed to develop residential projects on 29 acre of land in Ghaziabad. Punj Lloyd was supposed to do the entire construction work for the project. However, considering the state of the real estate scenario in the country today, the management has shelved its plans. As per a leading business daily, Britannia plans to consolidate its manufacturing facilities and realign operations. The company will also rework its distribution strategy. This will help the company to bring in operating efficiencies in necessary areas. As such, it will also help the company review its transportation costs. With company facing intense competition in the business along with an increase in the input costs, these measures will help it least maintain its margins going forward. The stock is trading firm, while Dabur is in the red. The Indian markets have started the day's proceedings on a volatile note. While engineering and metal stocks are trading higher, telecom stocks are leading the pack of losers. The overall advance to decline ratio is poised at 5.7 to 1 on the NSE. As regards global markets, while the US markets ended mixed on account of a 13% drop in homebuilding starts, the European markets closed higher yesterday. The Asian indices are currently showing mixed vibes. The BSE Sensex and the NSE Nifty are trading higher by around 25 points and 7 points respectively. The BSE Midcap and BSE Smallcap index are both trading higher by 3%. The rupee is trading at 47.91 to the dollar. Grasim announced its FY09 results yesterday. On a standalone basis, the topline grew by 5.8% YoY during FY09, supported by growth in cement business. The cement segment reported a 17% YoY growth in sales led by 6% YoY growth in volumes. The operating profits were lower by 18% YoY as costs continued to grow at a double digit rate. 18% fall in operating profits and higher depreciation and finance charges led to a 24% YoY decline in profit before taxes. On a consolidated basis, topline growth stood at 8.4% YoY, while the net profits fell by 24% YoY. The company's subsidiary - UltraTech reported a 16% YoY growth in topline, while bottomline declined by 3% YoY. The board has recommended a dividend of Rs 30 per share. The same translates into a dividend yield of 1.3% at current levels. Cement stocks are trading higher currently. Intelligent Investor Bangalore - India For paid services - intellinvestor@gmail.com follow - www.twitter.com/SmartInvestor