Sunday, July 26, 2009

Share Market Voices 13 July 2009

Share Market Voices 13 July 2009

Cipla, Sun Pharma, Biocon, Aurobindo Pharma and Dr Reddy's Laboratories look good in the healthcare space. These stocks can be picked up in a staggered way at declines. One can also try Glenmark Pharma,Divis Laboratories, Ranbaxy and Lupin at sharp falls.

Axis Bank has posted a net profit of Rs 5620.40 million for the quarter ended June 30, 2009 as compared to Rs 3301.40 million for the quarter ended June 30, 2008. The bank's total income increased from Rs 28912.40 million for the quarter ended June 30, 2008 to Rs 38641.30 million for the quarter ended June 30, 2009.

The stock is down with a small loss at Rs 735 now. An hour before the announcment of results, the stock had drifted down to around Rs 705.

Maytas Infrastructure has announced that the company is on fast track revival mode with the government appointed nominees reaching out to top management of leading banks and getting the CDR pacage approved. The company's liquidity crunch is likely to significantly ease and a faster execution of projects on hand is on the cards. The company has a healthy order book of Rs 7525 crores.

One can stay invested in IT majors Infosys, Wipro and TCS with a medium term view. Though some weakness is not ruled out in the near term, these stocks can give fairly solid returns over the next 9 - 12 months. Sharp dips can be used to increase exposure to these stocks.Long term investors can continue to hold the stock and look at increasing exposure at sharp declines.

With hopes of a rapid economic recovery fading once again, markets across the Asian region have taken a severe beating today.
On concerns over a possible fall in demand, oil prices have been declining over the past few days.

If the mood continues to remain bearish, then one can see the premier Indian indices losing another 8 - 10% from their current levels, if not more.

Omaxe Ltd has informed its subsidiary Pancham Realcon Pvt. Ltd has entered into an MOU with Allahabad Development Authority for development of Hi-Tech Township at Allahabad on the banks of River Ganga near to Sangam. The township, to come out at an estimated cost of around Rs 1,800 crores, is to be completed in phases over a period of 5 to 7 years. The estimated revenue from the project will be in the range of Rs 2200 crores.

Sterlite Industries (Rs 564) can rise to Rs 578 or further higher if it manages a breakout at Rs 568. On the downside, the stock has support at Rs 560 and weakness there can result in a fall to Rs 554 or even lower.
Punj Lloyd (Rs 173) can be picked up at declines for long term. The stock is likely to face strong resistance at Rs 215 -220 where one can book profits and exit. Long term investors can hold the stock with a stop loss at Rs 130.

Cipla (Rs 268) can be retained for decent gains over a medium term. The stock has support at Rs 245 and one can have a stop loss there for now.

Dabur India (cmp Rs 131) is near its 52-week high now. The stock can rise to Rs 138 - 140 if the current momentum at the counter sustains for a session or two. On the downside, the stock has support at Rs 110 -115. A breach there could result in a fall to Rs 93 or even lower.

Sterlite Technologies has won a contract valued Rs 372 crore from BSNL for enabling a Fiber-to-the-Home Network based on Gigabit Passive Optical Network technology. The company won this contract amid competiton from global players. The stock is currenly down by 4.75% at Rs 162.50.

BGR Energy has been awarded the Chandrapur Mega Project contract worth around Rs 1632 crore. The contract is for design, engineering, supply, erection, testing and commissioning of mechanical, electrical and civil & structural works for the main plant package of the coal-based Chandrpur Super Thermal Power Station Expansion Project. The stock is up 3.7% at Rs 275.

Trading got off to a highly negative start on the major Indian bourses this morning due to weak global cues. The Sensex is down by 185 points or 1.37% at 13,319, a few points off a low of 13,287.

Stocks to watch

Power equipment maker Bharat Heavy Electricals after it said it was close to finalising a European partner for an existing joint venture with Nuclear Power Corp of India.

IL&FS Investment Managers Ltd after it said its board would meet on July 15 to consider a stock split.

IDBI Bank after a top official said it expected April-June loans would have risen 15 percent and deposits by a fifth from a year earlier.

Hindustan Construction Co Ltd after it said IndusInd Bank had invested 500 million rupees in its unit Lavasa Corp Ltd in the form of convertible debentures.