Sunday, July 26, 2009

BSE / NSE Market Voices 14 July 2009


Market Voices 14 July 2009

Trading firm right till the end, the Sensex ended almost at the day's high, at 13,902.55 (provisional) with a thumping gain of 502.23 points or 3.75%. The Nifty closed at 4128.30, up 154.25 points or 3.88%.

Realty stocks sparkled today. Stocks from metal, consumer durables, power and capital goods sectors too ended on a high note. Bank, oil, PSU, IT, telecom, auto and pharma stocks rallied higher. FMCG stocks moved up on late buying. It was a bright outing for midcap and smallcap stocks as well.

DLF moved up by over 12%. Reliance Infra gained more than 9%. ICICI Bank and JP Associated gained around 8.5%. HDFC, ACC, Tata Steel, RComm, Hindalco, Grasim, M&M, Tata Motors, RIL, L&T, Wipro, BHEL and Sterlite gained 3% - 8%. TCS, SBI, HUL,

Infosys, ITC, Sun Pharma and ONGC also ended on a firm note. Suzlon shot up by nearly 14%. Unitech, Reliance Capital, SAIL, Ambuja Cements, RPower, Idea Cellular and HCL Tech gained 6% - 11%. PNB, Power Grid, Nalco, ABB, Siemens, GAIL, Cipla, BPCL and Ranbaxy also closed sharply higher.

Jubilant Organosys Limited has posted a net profit after tax of Rs 1450.30 million for the quarter ended June 30, 2009 as compared to Rs 145.10 million for the quarter ended June 30, 2008. Total Income has decreased from Rs 6191.30 million for the quarter ended June 30, 2008 to Rs 6116.90 million for the quarter ended June 30, 2009. The stock is up 6.5% at Rs 160 now. Investors with a medium term view can hold the stock for now.

Blue Dart Express Limited has posted a net profit of Rs 114.35 million for the quarter ended June 30, 2009. The company had posted a net profit of Rs 206.3 million in the corresponding quarter last year. The Blue Dart stock is down by around a per cent at Rs 499. One holding the stock with a long term plan can stay invested.

Reliance Infrastructure has moved up sharply on speculation that the company stands a chance of bagging the Hyderabad metro rail project. The AP Government is expected to call fresh bids on a global tender basis for the prestigious metro rail project following the cancellation of the earlier award given to the Maytas Infra led consortium. At Rs 1044, Reliance Infrastructure is up nearly 8% over its previous closing price.

Positive global cues are aiding sentiment today. One will have to wait and see if the rally sustains for a considerable length of time. With several top firms to announce their earnings over the next few days, one would do well to stay cautious. Those running in profits can book some and lighten commitments to an extent.

Sintex Industries has posted a net profit of Rs 482.216 million for the quarter ended June 30, 2009 as compared to Rs 437.156 million for the quarter ended June 30, 2008.

Shree Ashtavinayak Cine Vision Ltd will have an EGM on August 8, 2009, to consider the change in denomination of equity share from Rs 10/- each to Re 1/- each. The stock is up 1.35% at Rs 552.40 now. It had touched a high of Rs 645 in early June this year.

DLF (Rs 287) can move on to Rs 335 - 340. The stock is likely to face some stiff resistance there. A strong breakout could result in a rise of another Rs 30 - 40. Traders with a good appetite for risk can try the stock with a stop loss near Rs 250.

According to reports, the government is likely to sell a stake in Coal India to raise about Rs 6,000 crore. The sale is likely to take place in the next few weeks. 12:45 PM: ABB Limited has won orders worth Rs 1410 million from Maharashtra State Electricity Transmission Company Limited for substations to help improve the efficiency and reliability of the state's network. The project is scheduled for completion in 2010.

The ABB stock is up 3.5% at Rs 682. Investors holding the stock with a long term view can stay invested. Fresh buying can be considered at sharp declines.

HDFC Bank has posted a net profit of Rs 6061.10 million for the quarter ended June 30, 2009 as compared to Rs 4643.50 million for the quarter ended June 30, 2008. The bank's total income has increased from Rs 42151.50 million for the quarter ended

June 30, 2008 to Rs 51367.50 million for the quarter ended June 30, 2009. The stock is up nearly 2% at Rs 1401. One can stay invested in it and look at buying more at dips.

Infosys Technologies (Rs 1763) can be tried for intra-day. The stock is likely to move up sharply if a decisive breach happens at 1770. One can have a stop loss near Rs 1750, around the day's low.

Oracle Financial Services has announced that International Bank of Azerbaijan has gone live on Oracle FLEXCUBE Universal Banking. The IT stock is up 3.35% at Rs 1149 now. The stock, which had touched a high of Rs 1474 in early August 2008, plunged to a low of Rs 405 in late October that year.

The market has moved up sharply on strong global cues today. With top notch firms slated to announce their results over the next few days, investors are likely to tread a cautious path at higher levels. There is a possibility of the market finding it tough to sustain gains. A good participation from institutional investors could keep the momentum going for the market.

IndusInd Bank has moved up by nearly 6% to Rs 82.40 this morning on fairly large volumes. The bank has announced that it has tied up with Maruti Suzuki for financing Maruti Vehicles on an all India basis as part of the bank's expansion strategy in the consumer finance segment.

Gitanjali Gems Ltd 's wholly owned subsidiary Gitanjali USA Inc. has acquired 51% stake in Diamlink Inc. (Diamlink) New York based corporation. Diamlink Inc. is engaged in the business of diamond and diamonds studded Jewellery. By virtue of this acquisition Diamlink Inc. has become a step down subsidiary of the Gitanjali Gems Limited. The stock is up by over 5% at Rs 97.35 at present.

Stocks to watch

Motilal Oswal Financial Services Ltd after the company said late on Monday its net profit for the quarter to June rose 30 percent from year ago.

Oil & Natural Gas Corp after the petroleum minister said on Monday it has negative present value on its investment in Cairn India's Rajasthan block under the revised field development plan.

Jewellery maker Gitanjali Gems after the company said late on Monday its U.S. unit had acquired a 51 per cent stake in New
York-based diamond jewellery maker Diamlink Inc.