Sunday, July 12, 2009

Brokerage Recommendations 6 July 2009

The market is excessively reactionary and India is in good shape compared to the world, says Uday Kotak of Kotak Securities, on CNBC TV18. The budget has provided stimulus for spurring domestic demand, he adds. This is comforting as the world situation is expected to worsen, he feels.

The real economy continues to stay strong and funds will get deployed systematically, says Deven Choksey of KR Choksey on Zee Business. Therefore, this is a good time to buy quality fundamental stocks and look beyond one year, he adds.

This budget is not negative but merely looking negative because of high expectations from it, says Anand Rathi of Anand Rathi Securities on Zee Business. Social spending in rural and agriculture will definitely give a boost to growth, he adds.

This budget has a lot for the average tax payer, says C Jayram, market expert, on Zee Business. From growth perspective there is a fair amount in it and so I am optimistic, he adds. This clearly is a correction that many investors were waiting for, he says. So, these levels would make a good entry point for retail investors to get into the market, he adds. There were no clear numbers or game plans announced as far as disinvestment goes and this was disappointing from the market's perspective, he adds. He believes there was disappointment on the fiscal deficit front because of too much expectations.

It was the worst market performance on a budget day today. The market slid on heavy volumes on lack of major announcements in the budget. Sensex closed at 14035, down 877 points (down) and Nifty at 4162, down 258 points (down) from the previous close. CNX Midcap index is down 4.77% and BSE Smallcap index is down 4.41%.

The market has given back the pre-budget rally, says Dheeraj Agarwal, market expert, on CNBC TV18. Our market was rallying when global markets had corrected, he says. Valuations were stretched and a cool off is fine, he adds.

The policy displayed in the budget was short of expectations therefore there is nervousness in the market, says Jigar Pandit of Sharekhan on Zee Business. We need to give some time to the Government because the intent is there, he adds.

Over-arching challenge for the government is to return to high growth, says Ashok Chawla, finance secretary, on CNBC TV18. FY10 growth is seen at 7% and government is trying to reconcile short-term objectives, he adds. The removal of surcharge will put more money in the hand of people, thus boost consumption, he adds.

Hold Nagarjuna Fertilisers with short-term target of Rs 46, says Pankaj Jain of Satguru Capital on Zee Business. It is moving in the range of Rs 25-45, he adds. The stock is currently trading at Rs 38, down 8.9% on the BSE.

This is a pragmatic budget and market expectations were too high, says MV Kamath of ICICIC Bank, on CNBC TV18. No increase in corporate tax, removal of FBT and cut in surcharge are positives, he adds. The greater flexibility to IIFCL with Rs 100,000 crore outlay is a big window of opportunity and that is a substantial boost for the infrastructure space, he says. The government tone is of increase in private and public partnership, now it will be time for the private sector to step forward, he adds.

Overall, this is a good budget, says Sajjan Jindal of JSW Steel, on CNBC TV18. The increase in MAT to

The 9% growth as predicted in this budget is very possible in the next few years, says Surjit Bhalla of O(x)US Research on NDTV Profit. This government does appear to have a very clear road map, he adds.

Nifty will now find it difficult to go past 4500, says Ramesh Damani, market expert, on CNBC TV18. The market was looking at the budget as a trigger but now that has been overcome, he says. Increase in MAT rate is a negative for the market, he feels.

The market continues to trade weak post the budget. Sensex is trading at 14191, down 721 points and Nifty is at 4207, down 217 points from the previous close. CNX Midcap index is down 3.26% and BSE Smallcap index is down 2.53%. The market breadth is negative with advances at 226 against declines of 987 on the NSE.

This is a good prudent budget and the finance minister has done a fine balancing act, says Ness Wadia of the Wadia Group on Zee Business. The budget has talked of a more long-term growth picture, he says. The increase in rural consumption is a big positive, he adds. The benefits for Mumbai trains is also a fine move, he says.

Hold CESC with target of Rs 310, says Pankaj Jain of Satguru Capital on Zee Business. Keep stop loss of Rs 270, he adds. The stock is currently trading at Rs 282, down 2.7% on the BSE.

There are certain indications of bold steps in this budget, says Chanda Kochchar, MD & CEO of ICICI Bank, on NDTV Profit. The target of 9% GDP growth and no increase in corporate tax are big positives, she adds.

Hold IFCI with target of Rs 65-70, says Pankaj Jain of Satguru Capital on Zee Business. Keep stop loss of Rs 49, he adds. The stock is currently trading at Rs 50, down 7% on the BSE.

Indian Union Budget 2009-2010: I expected strong steps to control fiscal deficit but this did not happen, says former Finance Minister Yashwant Sinha, reports Zee Business. I am concerned about this deficit which has gone up but the Finance Minister has just postponed it, he adds. He thinks that the common man will not benefit from this budget.

These are extraordinary global times and the market was expecting too much from the budget, says Kalpana Morparia of JP Morgan India, on NDTV Profit. So long as there is a roadmap in the budget it is still a positive, he adds.

This is a clear-cut budget which brings together Bharat and India, says Prime Minister Dr Manmohan Singh commenting on the Union budget, reports Zee Business. There is focus on infrastructure and increase in investment into social sectors should benefit the poor, he adds.

Indian Union Budget 2009-2010: I am happy with the budget but the market has not understood it and expected too much, says Deepak Parekh, market expert, on CNBC TV18. The market expected reduction in corporate tax, he adds. He thinks hike in FDI was not key agenda of the budget.

The market slides and is trading weak on lack of major announcements in the budget. Sensex is trading at 14336, down 576 points and Nifty is at 4248, down 175 points from the previous close. CNX Midcap index is down 2.47% and BSE Smallcap index is down 1.94%.

Indian Union Budget 2009-2010: The Finance Minister has not packaged the budget very well, says Samir Arora of Helios Capital on CNBC TV18. But the market will forget about the budget in 4-5 days, he adds.

Indian Union Budget 2009-2010: The market was running ahead of realty and so there is some disappointment for corporate Indian from the budget, says Uday Kotak of Kotak Securities on CNBC TV18. But this is a great time for medium-term investors who were left out to get into the market now, he adds.

Indian Union Budget 2009-2010: Unified excise duty for cars is positive news for Tata Motors and Mahndra & Mahindra, says CNBC TV18

Indian Union Budget 2009-2010: SEC 801B benfit extended to natural gas is positive news for RIL and Cairn India, reports CNBC TV18. Custom duty hike on gold and silver is negative news for Vaibhav Gems, it adds. Extension of tax holiday for exporters is good news for gems and textile industry, it says.

Indian Union Budget 2009-2010: Custom duty on LCD panels cut from 10% to 5%, says the Finance Minister, reports CNBC TV18. There will be an imposition of 5% custom duty on set top boxes, he adds. This is negative news for Dish TV, Sun TV, Airtel, Videocon and WWIL, says the channel.

Aggressive investors should buy into textile stocks which are now available at dirt cheap prices, says PN Vijay, portfolio manager, on CNBC Awaaz. This sector could become as powerful as the IT sector five years down the line, he adds.

Indian Union Budget 2009-2010: FBT and Commodity Transaction Tax are to be abolished and MAT (minimum alternative tax) rate to be increased to 15% versus 10% of book profit, says the Finance Minister, reports CNBC TV18. Propose to extend sunset clause by one year and tax holidays for exporters is extended to 2011, he adds.

Indian Union Budget 2009-2010: New direct tax code is to be released in 45 days, says the Finance Minister, reports CNBC TV18. GST is to be introduced from April 1, 2010, and states have agreed for basic structure of GST, he adds. There is no change in corporate tax and there will be removal of surcharge of 10% on personal income tax, he says.

Indian Union Budget 2009-2010: Spending on higher education to be increased and allocation of Rs 2130 crore to set up more IIT and NIITs. A central university has been proposed in each state, says the FM, on NDTV Profit. This higher spend to benefit companies like Edcuomp, Everonn Systems and NIIT.

The market at noon has plunged, in an initial reaction to the Union budget even as the Finance Minister is in the midst of presenting it in Parliament. Sensex is trading at 14660, down 252 points from its previous close, and Nifty is at 4338, down 85 points. CNX Midcap index is down 0.9% and BSE Smallcap index is down 0.8%.

Indian Union Budget 2009-2010: Gram Sadak Yojana allocation has been hiked up 59% to Rs 12000 crore, says the Finance Minister, reports CNBC TV18. UID project allocation is Rs 120 crore and Rs 2000 crore will be allocated to rural housing fund, says the Minister.

Indian Union Budget 2009-2010: The JNNURM hike is positive news for Tata Motors, says CNBC TV18. The market development assistance scheme will benefit textiles and gems sectors, it adds.

Indian Union Budget 2009-2010: NREGA allocation has been upped by 144%, says the Finance Minister, reports CNBC TV18. This news is positive for auto companies with rural presence, such as Hero Honda and Eicher Motors, says the channel. Bharat Nirman allocation for FY10 has been upped by 45%, it adds.

Indian Union Budget 2009-2010: To develop national gas grid, says Finance Minister on NDTV Profit. On exports, the export credit guarantee scheme extended to March 2010.

Indian Union Budget 2009-2010: Government plans to move towards nutrient-based subsidy regime for fertilisers, says Pranab Mukherjee, reports CNBC TV18. There are plans to hike allocation to irrigation projects, he adds. This is positive news for Patel Engineeing,Nagarjuna Fertilisers, Chambal Fertiliser, GSFC, EID Parry, says the channel. »

Indian Union Budget 2009-2010: IIFCL to finance 60% of commercial bank loans for PPP. JNNURM allocation increased 80% to Rs 12887 crore and Urban Poor Housing allocation increased to Rs 3973 crore, reports NDTV Profit.

Indian Union Budget 2009-2010: The allocation to NHAI will be 23% higher, says Pranab Mukherjee, reports CNBC TV18. Increased allotment for highways is a positive news for GMR Infrastructure, L&T, IVRCL Infrastructure and IRB Development, Maytas Infra, says the channel.

Indian Union Budget 2009-2010: IIFCL is to be given greater flexibility, says Pranab Mukherjee, reports CNBC TV18. Gross capital flows rose to 9% in 2008, 2009, he adds. Further stimulus to economy is needed, he says, reports the channel.

Indian Union Budget 2009-2010: The policy target is to revive industry and agricultural growth, says the Indian Finance Minister, Pranab Mukherjee, as he begins his budget speech in Parliament, reports CNBC TV18. Infrastructure investment is to exceed 9% of GDP by 2014, he adds and says that the aim is to ensure 4% growth for Indian agriculture.

An hour into opening. the market is looking positive, just a few minutes away before the Indian Finance Minister places the Union budget in Parliament. Sensex is trading at 15013, up 100 points from its previous close, and Nifty is at 4454, up 30 points. CNX Midcap index is up 0.7% and BSE Smallcap index is up 1.5%.

Markets may gain 5-10% post-budget, says Shankar Sharma, market expert, on CNBC TV18. He believes that the Sensex can go up to 15400 this week. He does not think STT should be cut but is in favour of a phased-out hiking. I would be a seller in any near-term rally, he adds.

Any increase in excise duty would send wrong signals, says Pankaj Vaish, market expert, on CNBC TV18, speaking on the Union budget to be announced shortly. He does not expect excise duty to be hiked but believes that concrete steps of intent for power are needed.

Buy HDIL with intra-day target of Rs 250, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 238, he adds. The stock is currently trading at Rs 246, up 2.5% on the BSE.

Buy Prakash Industries with intra-day target of Rs 120, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 115, he adds. The stock is currently trading at Rs 117.25, up 2.1% on the BSE.

I don't expect the STT to be phased out, says Ramesh Damani, member BSE, on CNBC TV18. He thinks that the STT is fine and the levels are unviable. The market would be happy if STT is treated as advance tax, he adds. He believes that airlines and OMCs could gain from the budget.
Buy Bayer Cropscience with intra-day target of Rs 330, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 298, he adds. The stock is currently trading at Rs 300.95, up 0.3% on the BSE.

Buy IDFC with target of Rs 154, says Hemen Kapadia, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 142, he adds. The stock is currently trading at Rs 146.50, up 1.1% on the BSE.

The market appears to be in a mood to take everything positively, says Vibhav Kapoor of IL&FS on CNBC TV18. The sentiment is positive and the market can only go up, he adds. He thinks that if the budget is positive then Nifty could test levels of 4600 and even 4800 in the next week. But after that, the Indian market will follow global trends but, in case of a good budget, will continue to outperform.

Buy fertilizer shares, says Anil Manghnani, technical analyst, in a budget buy call on Zee Business.

Buy Tata Motors with target of Rs 309, says Hemen Kapadia, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 294, he adds. The stock is currently trading at Rs 304.25, up 1.3% on the BSE.

Buy IDFC with intra-day target of Rs 152, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 144, he adds. The stock is currently trading at Rs 146.15, up 0.9% on the BSE.

Buy ICSA with target of Rs 179, says Hemen Kapadia, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 167, he adds. The stock is currently trading at Rs 172.90, up 0.4% on the BSE.

Buy SAIL at Rs 161 with target of Rs 165, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 157, she adds. The stock is at Rs 161.50, up 1.3% on the BSE.

I expect FBT to be scrapped says Ashok Wadhwa of Ambit Holdings on CNBC TV18, speaking on the general budget to be announced shortly. He does not see any other reductions in the corporate side.

Buy NTPC at Rs 204 with targets of Rs 208 and then 211, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 200, she adds. The stock is at Rs 204.35, up 2.3% on the BSE.

Buy Nagarjuna Fertilisers, JP Hydro and SAIL, says Simi Bhaumik, technical analyst, in a budget buy call on Zee Business.

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