Monday, June 1, 2009

BSE / NSE Shares analysis 1st June 2009

BSE / NSE Shares analysis 1st June 2009

The board of directors of AXIS Bank has approved borrowing / raising funds to the extent of Rs 3,000 crores in FY 2009-10 by issue of Debt instruments. The bank plans to raise Rs 500 crore or equivalent amount in Indian / foreign currency by issue of debt instruments in domestic and / or overseas market, eligible for inclusion in tier I capital and Rs 2,500 crore or equivalent amount in Indian / foreign currency by issue of debt instruments in domestic and / or overseas market, eligible for inclusion in tier II capital.

TVS Motor has reported a decent growth in vehicles sales in May 2009. TVS Motor Company's domestic motorcycle sales clocked a 3% growth in May 2009 over May 2008. Total motorcycle sales, however, slipped 2.23% to 53,495 units in May 2009 over May 2008. The stock is trading at Rs 46.30 at present. One looking at long term can stay invested in the stock and pick up more of it at declines.

Glenmark Pharmaceuticals has received ANDA approval from U.S. FDA for Hydralazine Hydrochloride Tablets. The product has been approved in the active strengths of 10 mg, 50 mg and 100 mg as the AB rated generic Pliva's equivalent Hydralzine Hydrochloride. The tablets are indicated for the treatment of essential hypertension.

Parsvnath Developers Limited has got the approval for its 'Parsvnath La Tropicana' project. The Premium luxury project in the heart of Delhi, is estimated to be worth arond Rs 1300 crore.
The Parsvanath Developers stock is up 1.25% at Rs 98 now. One looking at long term can try this stock at declines. Last message received on 6/1/2009 at 11:19 AM balakumar subramanian:

Religare Enterprises and Swiss Reinsurance Company have signed a non-binding agreement to develop a joint venture health insurance company in India. The proposed JV will further strengthen Religare's diversified portfolio and bolster it presence in the insurance domain.

One seeing some good profits in Cairn India (cmp Rs 248) can book some at current levels. The stock is likely to face some resistance at these levels. Though a further rise is not ruled out, some profit taking here is not a bad idea. The stock is a good buy at Rs 220 - 225 levels.

Hero Honda Motors has reported a sharp 22.5% jump in vehicle sales for the month of May 2009.
Vehicle sales rose 22.5% to 3.82 lakh units in May 2009 over May 2008. The company plans to launch a 100 cubic centimetre (CC) motorcycle in the price band of Rs. 40,000-45,000. The bike in the entry-level category will be launched by the end of the current fiscal. At Rs 1353, the stock is up by nearly 1.25% now. Long term investors can continue to hold the stock.

One looking for some solid gains over a short to medium term can try Suzlon Energy (cmp Rs 106) at Rs 95 levels. The stock is likely to face some resistance near Rs 115 but a strong breakout there can result in a surge to Rs 130 - 135. One looking at long term can have a stop loss at Rs 70 - 75 levels.

RComm, DLF, Sun Pharma, HDFC, Tata Steel and ACC are up y 3% - 7%.
Reliance Infra, ICICI Bank, Tata Motors, Sterlite, Bharti Airtel, ITC, Grasim, L&T, BHEL, Tata Power and Ranbaxy have also risen sharply. RIL, Infosys and Wipro have also posted strong gains.

Market Outlook

The market is expected to open on a firm note and remain positive for a major part of the session. Some profit taking is likely at higher levels.

Sector Watch

Realty, bank and automobile stocks are likely to attract attention. IT stocks are expected to rebound and regain some lost ground. Capital goods and metal stocks may edge higher. A fair amout of buying is seen in infrastructure space.

Scrip Watch

Sun Pharmaceutical may attract attention. The pharma major has posted a rise of 22.24% in net profit after minority interest of Rs 18,177.30 million for the year ended Mar. 31, 2009 as compared to Rs 14,869 million for the year ended Mar. 31, 2008.

Unitech is likely to be in focus on reports that the company is looking at repaying about Rs 20 billion of its debt and bring it below Rs 60 billion level by the end of this fiscal.

Macro and Market Factors

The Wall Street closed on a firm note on Friday as investor sentiment remained fairly buoyant. Asian markets are trading firm with an expansion in Chinese manufacturing for a third month raising hopes of a global economic recovery.

Strong GDP numbers has sent stock prices soaring higher on the Indian bourses last week and the mood is likely to remain quite upbeat this morning with strong global cues aiding the sentiment further.