Tuesday, December 29, 2009

Indian Stock Market Weekly review 24 Dec 2009


Bulls have reason to celebrate as last minute shopping before Christmas has taken the Nifty to a new high this week. The Finance Minister's comments on GDP growth coincided with the gains. Positive discussions about divestment programmes in Cabinet meeting, better cues from global markets also added to the upsurge. Finally, both the BSE 30-share Sensex and Nifty added 3.8% each. The BSE Sensex hit an intra-week high of 17,361 and low of 16,578 while NSE Nifty hit an intra-week high of 5798 and low of 4,943. The top gainers: The top gainers in the Sensex were NTPC (up 10.7%), Tata Motors (up 9.5%), Tata Steel (up 9.1%), Hindalco Inds (up 9%) and Reliance Infrastructure (up 6.7%). The Top Losers: The top losers in the Sensex were Cipla (down 2.5%), Hindustan Unilever (down 1.2%), Bharti Airtel (down 1%), Ranbaxy Labs (down 0.9%) and ACC (down 0.6%). The BSE IT Index (up 2.6%): The top gainers in the IT sector were Sasken Communication (up 11.1%), HCL Tech (up 4.7%), TCS (up 3.7%), Wipro (up 3.4%) and Mphasis (up 3%). The top losers were Oracle Financial (down 0.4%) and Financial Tech (down 0.2%). The BSE Consumer Index: The top gainers in the Consumer Durables sector were Whirlpool (up 8.5%), Titan (up 7%), Samtel Color (up 4.5%), Videocon Industries (up 2.5%) and Blue Star (up 0.6%). The BSE Healthcare Index (down 0.1%): The top gainer in the Pharma space was Glenmark Pharma. The stock rose over 8.8% during the week. Glenmark Generics received a tentative approval from the USFDA for two drugs. The estimated market size of one of the drugs Pramipexole Dihydrochloride, the generic version of Boehringer Ingelheim's Mirapex tablets, is estimated at US$487mn. Sun Pharma surged over 5% during the week. The company’s attempts to acquire Taro Pharma received a major boost with the Israeli company’s second-largest minority shareholder, Templeton Asset Management, asking the shareholders not to support the existing management, to vote against their decisions and to demand audited financial statements Panacea Biotec (up 4.6%), Glaxosmithkline (up 4.1%) and Strides Arcolab (up 3.7%) were among the other notable gainers. The top losers in were Suven Life Science (down 4%), Natco Pharma (down 3.5%), Piramal Healthcare (down 3%), Cipla (down 2.5%) and Orchid Chem (down 1.9%). The BSE Banking Index (up 4%): The top gainers in the banking space were Yes Bank (up 7.5%), Axis Bank (up 4.8%), Canara Bank (up 4.4%) and OBC (up 4.2%). ICICI Bank surged 5% during the week. According to reports, the bank plans to raise up to Rs12bn via bonds. The BSE Auto Index (up 2%): The top gainers in the auto space were Tata Motors (up 9.5%), Hero Honda (up 4.3%), Eicher Motors (up 3.4%), Hindustan Motors (up 2%) and Swaraj Mazda (up 1.6%). Bajaj Auto was the top loser. The stock fell 1.4% during the week. The BSE Oil & Gas Index (up 4.8%): The top gainers in the oil & gas space were Gujarat NRE Coke (up 15.8%), Great Offshore (up 13%), Essar Oil (up 4.9%) and HPCL (up 4%). Reliance Industries surged 4% during the week. The company made a gas discovery in one of its exploration blocks in the Krishna Godavari basin off the country's east coast. Great Offshore surged over 13% during the week. Bharati Shipyard concluded its open offer for an additional 20% shares in the company. Following the open offer, Bharati holds 43.17% in Great Offshore. The top losers in the oil & gas space were Hindustan Oil (down 1.1%) and ONGC (down 0.3%). The BSE Capital Goods Index (up 2.4%):The top gainers in the Capital Goods space were Dredging Corp (up 8.5%), BEML (up 8.4%), HEG (up 8.3%), Praj Industries (up 7%) and Jyoti Structures (up 6.6%). The top losers in the Capital Goods space were Gammon India (down 2.7%), ELGI Equipments (down 2.4%), SKF India (down 2.3%), Alfa Laval India (down 0.8%) and Carborundum Universal (down 0.3%). The Cement Sector: The top gainers in the cement sector were Mangalam Cement (up 16.1%), Binani Indus (up 7.3%), Dalmia Cement (up 4.8%), India Cements (up 3.6%) and Prism Cement (up 3%) The top losers were Kakatiya Cement (down 2.2%), Madras Cements (down 1.9%), Birla Corp (down 1.6%), Ultratech Cement (down 1.6%) and JK Cements (down 1.1%). Shares of Ambuja Cement gained 2.7% during the week. According to report released by IIFL during the week stated, “We retain our positive view on Ambuja Cements (ACL) post our recent management visit. We expect ACL’s realisation to be the least negatively affected in the months ahead among the large cement players in India, thanks to the company’s better regional sales mix. ACL’s capacity expansion projects are nearing completion, so we expect volume growth to accelerate in CY10. Benefits from the company stopping clinker purchase from 2QCY10, higher captive power generation and improved volume growth will negate the negative impact of decline in realisation, in our view. At a PER of 11x, EV/EBIDTA of 6x and EV/tonne of US$124 on CY10ii estimates, ACL is trading at reasonable valuations, in our view. We retain ADD on the stock”. The Telecom Sector: The top losers in the telecom were Gemini Comm (down 5.4%), Shyam Telecom (down 2.3%), WWIL (down 2.3%) and Bharti Airtel (down 1%). The top gainers in the telecom space were Himachal Futuristic (up 1.9%), Tata Comm (up 0.8%), MTNL (up 0.8%) and RCom (up 0.5%). The Realty Sector (up 4%): The top gainers in the real estate space were Akruti City (up 12.5%), Parsvnath (up 4.6%), HDIL (up 4.5%), Sobha Developers (up 4.2%) and Ansal Props (up 2.3%). The top losers were Anant Raj Indus (down 2.7%), Mahindra Lifespace (down 1.8%) and Unitech (down 0.7%). The Metals sector (up 6.8%): The top gainer in the metals sector was Adhunik Metaliks. The stock rose over 12% during the week. IDFC Project Equity Company will invest Rs2.5bn through its India Infrastructure Fund in a 540MW plant being built by Adhunik Power & Natural Resources in Jamshedpur. SAIL (up 11.3%), Tata Steel (up 9.1%), Tata Sponge (up 8.7%) and Tata Metaliks (up 8.6%) were among the other top gainers. The top losers were Monnet Ispat (down 2.2%) and Jindal Stainless (down 0.7%). Source : IIFL Bought to you by Ingenious Investor Equity Research Division Ravina Consulting No.429 Mahavir Tuscan Near Hoodi Circle, Whitefield Mahadevapura Post BANGALORE 560048 Read - www.ingeniousinvestor.blogspot.com Follow us - www.twitter.com/smartinvestor