Showing posts with label BSE Recommendations. Show all posts
Showing posts with label BSE Recommendations. Show all posts

Wednesday, February 12, 2014

Technical Calls - JP Associates

JP Associates Limited - Sell

The stock has been trading below its long term 200 day WEMA (73) since fourth week of January 2013. Moreover, the stock is trading within bearish price channel on the monthly chart. This indicating long term trend on JPASSOCIATES is likely to remain weak. On weekly chart, the stock has given a breakdown from the upward price channel indicates selling pressure cannot be ruled out and we might see a decline till 42/39 levels on downside. We expect selling pressure in the coming trading sessions with immediate support placed at 42. If the stock is able to give a sustained close below this level then we would see the stock testing 34.50 levels in the short term to medium term scenario. The stock is expected to find resistance at 50.30/52.70 levels.

Strategy: 

Sell JP Associate below 46.50 (Spot) with a stop loss of 50.30, for a potential target of 39/34.


Options Strategy

Traders could consider a short strangle on JP Associates. Short strangle is a strategy involving simultaneous selling of call and put options.  This strategy is best suited when one expects the underlying stock to move in a narrow range.

Traders could consider selling ₹35-put option and ₹45-call option. They closed with a premium of ₹1.15 and ₹0.75 respectively.

This will entail an initial income of ₹15,200 , as the market lot is 8,000 a contract. The maximum profit in this strategy will be the initial income. This strategy is for traders who can bear the risk, as loss will be unlimited.

For maximum profit, JP Associates has to settle between the strike price at the time of expiry.  However, if the stock breaks free in any one of the directions, that is either up or down, then this strategy will result in a huge loss. Any close above ₹47 or below ₹37 will impact the position.

It is better to hold on to the strategy till the expiry, as traders could capture the full potential of time value. We advise traders to exit from this strategy, if the loss touches ₹3,500.

Ingenious Investor
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Sunday, January 19, 2014

BSE & NSE Weekly Review 17th Jan 2013

The market rose last week after a government data showed that inflation based on the wholesale price index (WPI) eased to five-month low at 6.16% in December 2013. Easing inflation provides legroom for the central bank to cut interest rates in its next policy meet in order to bolster growth. Firm global stocks also boosted sentiments. Weaker-than-estimated US employment data released last Friday, 10 January 2014, cheered financial markets, as global investors feel the US Federal Reserve may not accelerate the pace of reduction in its monthly bond purchases.
The S&P BSE Sensex rose 305.13 points or 1.47% to 21,063.62. The 50-unit CNX Nifty rose 90.20 points or 1.46% to 6,261.65.
The BSE Mid-Cap index fell 1.43% and the BSE Small-Cap index fell 1.42%. Both these indices underperformed the Sensex.
Key benchmark indices surged on Monday, 13 January 2014, as a weaker-than-estimated US jobs report eased concern that the US Federal Reserve may accelerate the pace of stimulus cuts. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets in recent years. India has been one of the biggest beneficiaries of foreign capital flows. The S&P BSE Sensex garnered 375.72 points or 1.81% to settle at 21,134.21. The CNX Nifty garnered 101.30 points or 1.64% to settle at 6,272.75.
Key benchmark indices edged lower on Tuesday, 14 January 2014, as world stocks fell after Federal Reserve Bank of Atlanta President Dennis Lockhart on Monday, 13 January 2014, said that the US economy is on solid footing and he would support continued cuts to stimulus. The S&P BSE Sensex shed 101.33 points or 0.48% to settle at 21,032.88. The CNX Nifty lost 30.90 points or 0.49% to 6,241.85.
Key benchmark indices flared up on Wednesday, 15 January 2014, after a government data showed that inflation based on the wholesale price index (WPI) eased to five-month low at 6.16% in December 2013. Easing inflation provided legroom for the central bank to cut interest rates in its next policy meet in order to bolster growth. Firmness in Asian and European stocks also boosted sentiment. The S&P BSE Sensex rose 256.61 points or 1.22% to 21,289.49. The CNX Nifty rose 79.05 points or 1.27% to 6,320.90.
Key benchmark indices edged lower in choppy trade Thursday, 16 January 2014, as European stocks declined. The S&P BSE Sensex lost 24.31 points or 0.11% to settle at 21,265.18. The CNX Nifty shed 2 points or 0.03% to settle at 6,318.90.
Key benchmark indices edged lower in a choppy trading session on Friday, 17 January 2014. The S&P BSE Sensex was down 201.56 points or 0.95% to 21,063.62. The CNX Nifty was down 57.25 points or 0.91% to 6,261.65.
Infosys rose 5.05% to Rs 3,728.05. The company raised its revenue growth guidance for the year ending 31 March 2014. The stock hit record high of Rs 3,759.90 in intraday trade on Friday, 17 January 2014. At the time of announcement of Q3 December 2013 earnings, Infosys, on 10 January 2014, raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014. The company expects consolidated revenue in rupee terms to grow 24.4% to 24.9% for the year ending 31 March 2014 (FY 2014). This guidance is based on rupee dollar conversion rate of 61.81 for the rest of the financial year. The company expects consolidated revenue in dollar terms to grow 11.5% to 12% in FY 2014.
TCS fell 2.90% to Rs 2,215.65 as the company's third quarter results fell short of market expectations. The company's consolidated net profit rose 15.1% to Rs 5333 crore on 1.5% increase in revenue to Rs 21294 crore in Q3 December 2013 over Q2 September 2013. Operating profit grew 0.5% to Rs 6337 crore in Q3 December 2013 over Q2 September 2013. Operating margin was reported at 29.8% in Q3 December 2013. TCS announced the third quarter results after trading hours on Thursday, 16 January 2014.
TCS said growth in Q3 December 2013 was driven by industries like Life Science & Healthcare, Manufacturing, Media, Travel & Hospitality and Telecom. The company's broad based presence across markets and services helped overcome seasonal weakness in some markets. Europe led growth, driven by the continuous investments being made in that market, while North America and UK also grew during the quarter, TCS said in a statement. Among growth markets, Latin America, APAC and MEA registered strong growth. India business suffered from volatility and declined sequentially, TCS said. Among service lines, Business Process Services, Enterprise Solutions, Global Consulting were the leaders.
Wipro fell 0.38% to Rs 552.45. On a consolidated basis, the company's net profit rose 4.28% to Rs 2014.70 crore on 3.06% increase in total income from operations (net) to Rs 11,327.40 crore in Q3 December 2013 over Q2 September 2013. The result was announced after market hours on Friday, 17 January 2014
In dollar terms, IT services revenue were reported at $1,678.4 million in Q3 December 2013, an increase of 2.9% over Q2 September 2013 and an increase of 6.4% over Q3 December 2012.
IT services revenues in rupee terms was Rs 10330 crore in Q3 December 2013, an increase of 20% over Q3 December 2012.
IT services earnings before interest and tax (EBIT) was Rs 2380 crore in Q3 December 2013, an increase of 33% over Q3 December 2012.
Wipro expects revenues from IT services business to be in the range of $1,712 million to $1,745 million including the revenues from its acquisition. (The guidance is based on the following exchange rates: GBP/USD at 1.63, Euro/USD at 1.37, AUD/USD at 0.92, USD/INR at 62.0).
Engineering and construction major Larsen & Toubro rose 4.72% to Rs 1,001.15. The company will announce Q3 results on 22 January 2014.  L&T announced during trading hours on Thursday, 16 January 2014, that it has recently secured new orders of Rs 1000 crore from the domestic market in its offshore and onshore hydrocarbon business segment.
Index heavyweight Reliance Industries (RIL) rose 3.23% to Rs 884.55. The company after market hours on Friday, 17 January, announced that its net profit rose 0.16% to Rs 5511 crore on 10.67% increase in total income to Rs 105826 crore in Q3 December 2013 over Q3 December 2012.
Meanwhile, a media report suggested that RIL is eyeing Petronas' 11% stake in $20-billion Venezuela project. RIL clarified to the stock exchanges during trading hours on Friday, 17 January 2014, that it continues to look for opportunities to grow its business internationally and cannot make any specific comment on the media report.
State-run GAIL (India) rose 1.45% to Rs 351. 
Index heavyweight and cigarette maker ITC rose 0.74% at Rs 324.85. The company's net profit rose 16.25% to Rs 2385.34 crore on 13.4% increase in total income to Rs 9117.91 crore in Q3 December 2013 over Q3 December 2012. The company announced the results during market hours on Friday, 17 January 2014.
ITC said gross revenue grew by 12.9% to Rs 12223.44 crore in Q3 December 2013 over Q3 December 2012, driven by the new FMCG businesses and the Paperboards, Paper and Packaging segment. Within the FMCG segment, ITC said that the branded packaged foods businesses posted robust growth in revenues and enhanced market standing across categories by leveraging a portfolio of differentiated and innovative products.
ITC said its hotels business recorded a significant improvement in profitability aided by superior performance by ITC Grand Chola.  ITC said that its agri business profits rose 19% in Q3 December 2013, driven by higher realisation and superior mix.
Two-wheeler maker Bajaj Auto rose 1.73% to Rs 1,934. The company's net profit rose 10.48% to a record Rs 904.55 crore on 4.67% decline in total income to Rs 5353.08 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours on Thursday, 16 January 2014.
Exports rose 23.5% to Rs 2123 crore in Q3 December 2013 over Q3 December 2012.
Operating earnings before interest, taxation, depreciation and amortization (EBITDA) before mark-to-market gain/loss rose 0.64% to Rs 1092 crore in Q3 December 2013 over Q3 December 2012. Operating EBITDA margin before mark-to-market gain/loss, edged up to 21.1% in Q3 December 2013, from 19.8% in Q3 December 2012.
Total automobile sales fell 11.88% to 9.93 lakh units in Q3 December 2013 over Q3 December 2012. Bajaj Auto said that sales during festive period, though reasonable, were not robust. Subsequently, in November and December, industry sales continued to remain sluggish, Bajaj Auto said.
Bajaj Auto said that the quarter witnessed a marked increase in input costs of steel, aluminium and other imported components.
Cash and cash equivalents as on 31 December 2013 stood at Rs 6920 crore, higher than Rs 6516 crore as on 30 September 2013, Bajaj Auto said in a statement.
Two-wheeler major Hero MotoCorp rose 1.71% to Rs 2,069.95.
Cipla (up 4.80%), HDFC (up 4.75%), Sesa Sterlite (up 2.09%), edged higher.
Telecom stocks tumbled as a surprise decision of Reliance Industries (RIL) to join the bidding for upcoming telecom spectrum auction slated for 3 February 2014 raised concerns of aggressive bidding in the auction which in turn could have an adverse impact on balance sheet of telecom firms.  Bharti Airtel declined 5.87% to Rs 311.20. 
The notes attracted huge investor interest with an order-book aggregating circa euro 600 million from high quality investor accounts. The success of tap on the existing bond emphasizes the continuing and strong belief of the investor community in Bharti's credit, Bharti Airtel said in a statement. Bharti had earlier in December 2013 raised euro 750 million in an inaugural benchmark euro issuance.
The notes have been priced at 275 basis points over the curve adjusted 5-year EUR Mid Swap with a fixed coupon of 4% per annum. Bharti will fully apply the net proceeds to refinance its existing debt.
RIL's entry could result in increase in competition in the telecom sector.
RIL will join Bharti Airtel, Idea Cellular as well as the local units of Vodafone Group PLC and Telenor ASA in bidding for bandwidth in the auction in February. The government aims to raise at least Rs 11000 crore through two sets of auctions, one for a national service and another for a portion of bandwidth in Delhi, Mumbai or Kolkata, collectively home to over 32 million Indians.
RIL will bid to operate both nationally and in the three cities. A successful bid would mark the company's re-entry into the phone business after spinning-off its cellphone unit Reliance Communications in 2005, to brother Anil Ambani, as part of the division of the business empire built by their late father, Dhirubhai Ambani.
The auctions are crucial for Bharti and Vodafone India, whose bandwidth usage rights are set to expire in Delhi, Mumbai and Kolkata. Reliance Communications also has permits up for renewal in some regions in November this year. The companies will have to bid successfully in the upcoming auction to continue operations. The rights to use bandwidth last for 20 years. Idea Cellular and the Indian unit of Telenor, are also bidding in the hopes of expanding their services.
The Department of Telecommunications, which will conduct the auctions, will scrutinize the bids and announce the final list of bidders on 20 January 2014.
Coal India dropped 5.52% to Rs 272.75. The stock turned ex-dividend on Friday, 17 January 2014, for dividend of Rs 29 per share for the year ending March 2014. Before turning ex-dividend, the stock offered a dividend yield of 9.58% based on the closing price of Rs 302.70 on Thursday, 16 January 2014.

Source : Capitalmarket.com

Sowmya

Smart Investor
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Monday, January 11, 2010

BSE NSE Outlook for 11-15 Jan 10

Market mood indicates horizontal or downward move in the next week on likely impact of rupee appreciation on future earnings of some of the major IT players

Despite buoyant trend in the international market, the Indian market continued to look southward for straight second day on concerns of appreciation rupee that could have a significant bearing on the realizations of the Indian IT sector. Thus IT stocks, besides the metal and the banking stocks edged lower during Friday 8th January 2010. The S&P CNX Nifty corrected 18.35 points during the day to close at 5244.75. Although for the full week under review the benchmark underlying rose by 43.70 points. All throughout the previous week the nifty future closed at a premium to the underlying. The average volume in the futures and options (F&O) segment during the week under review was Rs 51350.80 crore, thus being insignificant despite the extended trading hours since the start of the new calendar year.

The nifty future started the week with excellent long built-up however during the past 2 days it shed some of its open interest (OI) due to profit booking. For the full week though the nifty January 2010 series added 21.54 lakh shares in OI to take the total OI as on 8thJanuary 2010 to 2.42 crore shares. Similar was the trend in some of the frontline stock futures as well. Reliance January series for e.g. added 26.24 lakh shares in OI to take its total OI to 1.13 crore shares, while Tata Motors and Unitech added 15.12 lakh shares and 63.27 lakh shares in OI. Tata Steel during the week though shed its OI by 6.87 lakh shares. Sail, Bharti and Rcom also added OI by 12.18 lakh shares, 14.99 lakh shares and 14.32 lakh shares respectively during the week under review. Maruti also added 10.62 lakh shares in OI during the week ended 8th January 2010.

Although the week started on a positive note, there was evident profit booking to wards the end of the week. Besides there were some negative indicators in the nifty option front as there was aggressive call writing at the 5200 and the 5300 strikes. Similarly there was some covering of put earlier wrote at the 5000 and 5100 strikes. Besides there was fresh put buying at the 5200 strike put. Thus the indications are clear negative.

Volume in the Futures & Options segment of the NSE (Turnover (Rs. Crore.)
DateIndex FuturesStock FuturesIndex OptionsStock OptionsTotal
4-Jan-1074111501918075205442559
5-Jan-10104992235923829291359599
6-Jan-1096362119919377249052702
7-Jan-10100292038220455254653412
8-Jan-1085681950317843256748482
Source: NSE

Overall the market wide OI on Friday stood at 185.26 crore shares. Of these major additions in OI was witnessed in the stock options segment, while there was fair addition in index options and stock futures front as well. (See table OI breakup).

Open Interest (OI) break-up as on 8th January 2010
Open Interest (OI)*Change**
Market wide185.263.21
Index Future2.77-0.02
Stock Future149.390.84
Index Options9.150.23
Stock options23.942.16
* No of shares in crores
** Change is vis-à-vis previous day
Source: NSE

The most active options in the January series were the 5200 to 5400 strike calls and 4900 to 5200 puts. Call strike witnessed addition of OI due to fresh call writing at the above mentioned strikes, while the puts witnessed fresh buying. The OI in 5200, 5300 and 5400 strikes increased by 1.04 lakh shares, 4.56 lakh shares and 0.74 lakh shares to 29.49 lakh shares, 48.09 lakh shares and 43.67 lakh shares respectively. The OI in 5000 and 5100 strike puts decreased by 0.28 lakh shares and 0.47 lakh shares to 52.49 lakh shares and 37.17 lakh shares respectively. The 5200 put witnessed fresh buying to take its total OI to 45.40 lakh shares as on Friday. (See most active Nifty options table).

Most active Nifty options (January 2010 series)
OI
Call
Nifty 52002948750
Nifty 53004808500
Nifty 54004367200
Nifty 56001380200
Put
Nifty 49002906350
Nifty 50005248900
Nifty 51003717250
Nifty 52004540350
Source: NSE

Top 10 Open Interest (OI) gainers in January series stock futures on 8th January 2010
Scrip NameOI*Change*% Change
BOSCHLTD118006300115
TECHM71880018120034
CUMMINSIND2109005225033
HCLTECH219180041470023
MOSERBAER5516775102960023
SUNTV1660003000022
CROMPGREAV5130007000016
TCS500400057200013
PFC8232008640012
HDIL970363898917211
* No of shares
Source: NSE

Top 10 Open Interest (OI) losers in January series stock futures on 8th January 2010
Scrip NameOI*Change*% Change
BHUSANSTL406000-100000-20
APIL465000-84000-15
HINDZINC518500-73500-12
KSOILS10507900-1345200-11
TULIP140000-13000-8
IVRCLINFRA2989000-268000-8
RANBAXY2795200-231200-8
SAIL7844850-610200-7
CHENNPETRO1492200-95400-6
ABB1126500-72000-6
* No of shares
Source: NSE

Besides the global action the quarter result of some of the major market players that could be declared in the proceeding weeks will provide either directional trigger. The mood indicates horizontal or downward move in the next week, as the rupee appreciation concerns would impact the future earnings of some of the major IT players, which could have a dent on the index.

Source : Capitalmarket.com

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Market Khabar 11 Jan 2010

The first week of 2010 started off nicely for the markets with indices closing near 22-month-high.
On the BSE, the Sensex ended 0.43 per cent or 75 points higher at 17,540 and the Nifty on the NSE inched up by 0.84 per cent or 44 points to 5,245. However, the real action was in midcap and smallcap stocks, both the BSE Midcap and smallcap indices moved up by 3.4 per cent and 4.1 per cent.

Strong FII buying and positive comments from the Prime Minister that India will return to 9-10 per cent growth rate kept the sentiment positive. Whether the market can sustain and bui-ld on last year’s gains will depend on corporate earnings, the government’s willingness to keep reforms on fast track and no negative surprises from global markets. Near-term direction of markets will depend on third quarter earnings season. For the week ahead, chartists predict a trading band of 17,160-18,000 for the Sensex and 5,080-5500 for the Nifty. Immediate supports exist at 17,320 and 17,080 and 5,160 and 5,080.
Expect resistance to the indices on upside at 17,740 and 17,960 and 5,330 and 5,420. The directional movement could be negative in short term, if the indices fall below 17,200 and 5,175. The movement of indices in narrow range clearly indicates that individual stocks would do better than the indices.

Knowing what stocks to avoid can be as important as knowing what to buy. No stock is perfect; every stock will have some drawback.

FUTURES & OPTIONS
The January series has started on a quiet note marked by low volumes and low volatility. Sentiment indicators like implied volatility, put/call ratio, open interest and VIX indicate possible increase in volatility again.
Punters advice strangle strategy — Buy Nifty5300 strike call option and Nifty5200 strike put option to take advantage of directional breakout after the onset of results season.

A strong rupee triggered selling pressure in IT stocks. However, the results of Infosys will set the tone for the sector in the week ahead. Savvy players are buying into Wipro, OFSS, Tech Mahindra, Moser Baer and Mphasis. Buy Mphasis for a target price of Rs 825.

The profit booking in auto stocks likely to be short lived. Use sharp declines to accumulate Ashok Leyland and M&M. Metal and cement stocks are likely to continue their upward journey after a mild sell off.

Ahead of RBI’s credit policy review, heightened activity indicated in banking counters. Buy private banks like Axis Bank and Kotak Bank for short term gains. Realty stocks are beginning to show good strength. Hold Unitech, IBREL and DLF for gains.
Among the side counters, India Infoline, Petronet LNG, Sun TV, Nagarjuna Const. and HCC are good for a target of Rs 175, Rs 90, Rs 390, Rs 195 and Rs 185. Sebi’s plan to standardise lot sizes for F&O stocks would make it convenient for the traders to remember lot sizes and improve volumes in the derivative segment.

STOCK SCAN
Mundra Port and SEZ runs India’s largest private port, whose cargo traffic is gro-wing at four times the speed of other major ports. The real trump card is the 100 sq km industrial zone, where Mundra is attracting factories such as Alstom-Bharat Forge JV for power equipment and others that will provide the port’s future traffic. Buy on declines for a target price of Rs 900 in next few months.

Escorts is tur-ning out to be a good turnaround candidate after it focused on tractor and construction machinery segments. To tap good opportunities from railways, the company has introduced four new railway products for coaches and wagons. Buy for a target price of Rs 225.

Minda Industries designs, develops and manufactures switches and batteries for 2/3/4 wheelers and off-road vehicles. It enjoys more than 70 per cent market share for switches in the two- and three-wheeler segment and is amongst the top few globally. Buy only on declines to Rs 240 for a target price of Rs 400.

Autoline Industries supplies sheet metal components, sub-assemblies and assemblies for large OEMs in the automobile industry. Buy for target price of Rs 200.

ZF Steering manufactures, and assembles mechanical steering gears, hydraulic power steering gears and other gear assemblies. A sharp increase in exports and a robust demand from domestic original equipment manufacturers (OEMs) augur well for the company. Buy for a long term target price of Rs 500.

Shrewd market players are accumulating BGR Energy, Sunil Hitech, Ramkrishna Forgings, Solectron EM and Indian Hume Pipes. Sharp gains indicated from current levels in next few months.

C. Kutumba Rao is a Hyderabad-based stock market analyst. The views expressed and the recommendations made are those of the author. Readers are strongly recommended to consult their financial advisors before making any financial investments. This newspaper is not liable for investment decisions made on the basis of recommendations in these columns.

Source : deccan.com

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Monday, December 14, 2009

Market Outlook 14-18 Dec 2009

Spooked by a lower than expected IIP number and concerns over rising food
inflation, markets shed intra-week gains to close on a flat note during the week
ended.

On the Bombay Stock Exchange (BSE), the Sensex gained marginally by 17 points to
close at 17,119 and the Nifty on the National Stock Exchange (NSE) ended just
eight points higher at 5,117.
However, heightened trader interest was seen in the midcap and smallcap
segments. Lack of liquidity on account of advance tax payments for third quarter
and weak FII inflows were dampeners.

Indication from the RBI that there are no plans to curb foreign fund flows
failed to improve sentiment.

Post-Dubai crisis, global markets continue to be on the edge due to not too
encouraging news of the downgrading of sovereign ratings of countries like
Greece and Spain, raising fears of `false' recovery in many countries.

However, weekend news of extension of TARP till October 2010 and better than
expected reading consumer spending and sentiment propelled Dow Jones to 2009
high.
Following fresh triggers from news flow, markets may break out from the present
trading range in the next couple of weeks. Roller coaster ride on cards for the
short term players. For the week ahead, chartists indicate a trading range of
16,800-17,490 for the Sensex and 4,940-5,300 for the Nifty.

Immediate supports for the indices are at 16,960 and 16,800 and 5,040 and 4,980.
Failure to sustain the support level 5,000-5,050 may trigger sharp selloff for
near term.

Expect strong resistance to the indices at previous week's highs yet again.

Never get out of the market just because you have lost patience or get into the
market because you are anxious from waiting. When in doubt, get out, and don't
get in when in doubt.

FUTURES & OPTIONS
Lacklustre trading was seen in the derivatives segment during the week ended.
With many market players preferring to play safe, open interest rose sharply in
opt-ion segment. Profit booking was seen in both index and stock futures.
Barring capital goods, IT and power, nearly all the sectoral indices ended in
red.

Among the stock futures, accumulation of longs seen in ABB, APIL, Bharat Forge,
BHEL, Balrampur Chini, Triveni, Cummins, Indian Hotels, JSPL, Hotel Leela,
Lupin, Prajay Industries, MTNL, REC and SAIL. Hotel stocks are witnessing good
buying interest. Buy on declines Hotel Leela and Indian Hotels for further gains
from current levels.
From infra stocks, Reliance Infra and JP Associates may see burst of activity.
Buy at current levels.

With non-ferrous metals shining on LME, expect bump up in Hindalco and Nalco.
Weakness in dollar may give fillip to steel stocks. As expected, capital goods
counters led by BHEL rallied smartly. Further gains indicated in engineering
stocks. Profit booking in banking stocks likely to be short lived. Accumulate
smaller PSU banks like Vijaya, Andhra, Syndicate, Dena and others in the current
downtrend for strong gains in next month. Relief rally in telecom. Realty stocks
are facing resistance at higher levels.

Avoid fresh buying for now. After the recent correction, pharma stocks look good
for fresh uptrend. Buy Biocon, Orc-hid and Aurobindo for sharp gains. While
range bound activity is indicated in IT bluechips, midcap counters may continue
to witness buying interest. Sudden spurt is not ruled out in Pantaloon, Educomp,
MTNL, Triveni and Bharat Forge.

STOCK SCAN
Ambika Cotton Mills has expanded its captive power plant to overcome power
shortage and is setting up another 6 MW biomass power unit. It has posted good
results in Q1 and Q2. Buy at current levels for a target price of Rs 200.

Turnaround performance of RSWM Ltd in Q2 has triggered renewed buying interest
in the counter. Restructuring by demerger of some divisions helped RSWMto
improve its operating margins. Buy on declines for a target price of Rs 150.

APW President is a leading designer, manufacturer and supplier of enclosure
systems for IT and telecom infrastructure. Buy at current levels for short term
gains.

After long consolidation, the stock price of Indrapra-stha Gas Ltd is on the
fast track due to expected gains from the recent expansion of the company's CNG
outlets in the NCR region. Stay invested for target price of Rs 225 in near
term.

Steady buying seen from FIIs in hospital stocks. Stay invested in Apollo
Hospitals for a target price of Rs 675 in next few weeks.
After stock split, volumes in Hindustan National Glass are on the rise. It is
expected give an EPS of Rs 24. Buy for target price of Rs 225 in medium term.

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Sunday, July 26, 2009

BSE / NSE Share Market Voices 15 July 2009

Market Voices

With strong global markets aiding them no end, the bulls called the shots and drove stock prices up sharply for the second successive session today.

Stocks cutting across sectors and size moved higher on sustained buying support. Expectations of more rains during the current monsoon and hopes of an economic revival kept investors busy right through the session.

The Sensex, which moved past the 14,000 mark in style, ended at 14,253.24 (provisional) with a massive gain of 399.54 points or 2.88%. It touched a high of 14,299.54 today. The Nifty closed at 4245.25, near the day's high of 4249.55, with a gain of 133.85 points or 3.26%.

Realty, metal, power, capital goods and PSU stocks sparkled. Oil, auto, bank, consumer durables and pharma stocks too had a nice ride up the charts. FMCG stocks rallied in late trades while IT stocks remained somewhat subdued today.

Midcap and smallcap stocks had another splendid session. The market breadth was pretty strong today.

Hindalco, JP Associates, DLF, Hero Honda, BHEL, Tata Steel, Tata Motors, RComm, Reliance Infra, L&T, Tata Power and Sterlite gained 4% - 8.5%. RIL, TCS, ONGC, Sun Pharma, Wipro, HDFC, SBI and ICICI Bank also closed on a high note.

Realty stocks have flared up today. Though a further upmove in some of the stocks in the realty space is not ruled out, one has to stay cautious with regard to fresh exposure to these stocks. Those running in profits would do well to book some at rallies rather than building up further positions.

Stocks of realty firms with a proven track record can be picked up in small quantities at sharp falls.

Aban Offshore (Rs 814) looks headed for further upmove. One willing to take some chances can buy the stock now. Others can look at buying the scrip at dips.

Investors looking at medium to long term can try infrastrutructure stocks. Reliance Infra, Reliance Industrial Infra, GMR Infrastructure, IVRCL Infrastructure and Gammon can be tried at falls.

Infosys Technologies (Rs 1777) is likely to edge higher this afternoon. If the current momentum at the counter sustains for a while, a rise to Rs 1795 - 1800 looks very likely. A fall to Rs 1765 could result in a slide to 1755 or even lower.

IDBI Bank has posted a net profit of Rs 171.83 crore for the quarter ended June 30, 2009 as compared to Rs 159.76 crore for the quarter ended June 30, 2008. The bank's total income increased from Rs 2756.15 crore for the quarter ended June 30, 2008 to Rs 4218.91 crore for the quarter ended June 30, 2009.

The stock has spurted following the announcement of results. At Rs 101.60, it is up by nearly 7.5% at present. One holding the stock can stay invested and buy more at dips.

It is better to have a stock specific approach during the reporting season. Though the market has taken global cues and surged higher today, one will have to stay extremely cautious ahead of announcement of results. Bad results can send a stock tumbling down sharply even if the broad market remains highly bullish.

Realty stocks are moving up sharply today. Besides bargain hunting after recent losses, expectations of a rise in demand for homes appear to be driving these stocks up north today. Still, considering the possibility of some strong rounds of correction in the near run, one would do well to lighten commitments at higher levels.

Investors with some appetite for risk can try IFCI (cmp Rs 43.85) at declines. The stock can rise to Rs 55 - 57 over a short run. However, it is advisable to have a strict stop loss in place.

One can go in for capital goods stocks Thermax, ABB, BEML and Bharat Electronics for solid gains over a medium term. L&T and BHEL can be picked up at declines in a staggered way.

3i Infotech has entered into an Agreement with Yucheng Technologies Ltd to acquire the 49% stake from Yucheng in order to make Elegon Technologies Ltd a wholly owned subsidiary of the Company in China.
The 3i Infotech stock is trading nearly 5% up at Rs 72.35 now. One holding the stock with a long term view can stay invested for now.

The stock has come a long way from a low of Rs 25 it had touched in early March this year. Though a fall to those levels is unlikely, a few weak spells could push the stock down to around Rs 60 in the near term.

HDFC Bank (Rs 1348) can be tried for intra-day if it makes a breakout at Rs 1360. The stock can then move on to 1377 - 1380 or even higher.
A stop loss can be placed near Rs 1340.

PSU stocks are likely to remain in focus as the government will be going in for some stake sale in MMTC, Hindustan Copper and NMDC among others. Though a sustained upmove looks unlikely, a few sharp rallies look very much on the cards for stocks in the PSU space.

Ashapura Minechem Ltd has informed that Ashapura Minechem (UAE) FZE, the wholly Owned Subsidiary of the Company in UAE, that it has divested its entire shareholding and consequently withdrawn from 'Ashapura Zawawi Minerals LLC' a Joint Venture Company incorporated in the Sultanate of Oman. Hence, Ashapura Minechem (UAE) FZE is no longer associated with the said Joint Venture in Oman nor the Joint Venture Partners - M/s. Alawi Enterprises LLC.

Suzlon Energy (Rs 93) can move on to Rs 135 - 140 if it rises to Rs 105 and displays strength for a few sessions. The stock will find support around Rs 80 and short term investors can hold the stock with a stop loss near that level.

Reliance Power has announced that it has achieved financial closure for its prestigious 1,200 MW Rosa power project in Uttar Pradesh. The stock is up nearly 3% at Rs 156 now. A further upmove looks very likely in the short run. One can hold the stock and look at increasing exposure at dips.

Power Finance Corporation has posted a net profit of Rs 5549.145 million for the quarter ended June 30, 2009 as compared to Rs 2962.971 million for the quarter ended June 30, 2008. The stock is up by around a per cent at Rs 206.65. One holding the stock can stay invested for solid returns over a medium to long run. More quantities can be added at declines.

BSE / NSE Closing Bell 15 July 2009


Closing Bell 15 July 2009

The Indian markets put up a strong show today as persistent buying activity led the indices to gain momentum right from the opening session of trade. The BSE-Sensex ended the day higher by around 400 points, while the NSE-Nifty ended with gains of about 130 points. The BSE-Midcap and BSE-Smallcap indices ended the day higher by about 4.2% and 4.6% respectively. Buying activity was witnessed in stocks across the board with the pack of gainers led by stocks from the realty, metal and capital goods space. At the time of writing, the overall advance to decline ratio stood at 3.7 to 1 on the BSE.

Most of the other Asian markets ended the day on a firm note today. The European indices are currently trading in the green as well. Rupee was trading at 48.7 against the US dollar at the time of writing.

Steel stocks ended the day on a firm note led by Bhushan Steel, Ispat Industries and JSW Steel. Steel consumption numbers for the first quarter were recently announced. As per a leading business daily, the consumption of finished steel rose by 5.2% YoY to 12.8 m tonnes (MT) during the first quarter. In addition, the steel ministry also mentioned in its report that finished steel production went up by 3.4 YoY to almost 14 MT during the quarter. However, the situation for the commodity’s export figures is quite the opposite. It is believed that steel exports dropped by 38% YoY during the quarter to 0.6 MT from a little over 1 MT in the same period last year. On the other hand, imports dropped by over 5% YoY during the period. It may be noted that as per the World Steel Association reports, while steel consumption in India is projected to grow by around 2% in 2009, the global steel consumption is projected to decline by around 14.9%.

Telecom stocks ended the day on a firm note led by Spice Communications, Idea Cellular and Reliance Communications. Mobile number portability (MNP), a service which allows subscribers to switch networks without changing their numbers, was slated to be rolled out by September this year. However, it is now believed that the implementation of MNP is likely to get delayed further as various telecom service providers informed Department of Telecommunications that the phased roll out is not possible. A leading business daily has now reported that the launch of MNP is likely to be delayed by another few months. It may be noted that the launch of MNP is likely to benefit the well established telecom service providers as it would allow them to capture subscribers using services of other operators. While India has been growing its subscriber base at a significant pace, the launch of MNP would mainly allow the larger players to eat into the share of the smaller players.

In a recent announcement, India’s Finance Minister stated that the government is making efforts to bring the fiscal deficit rates down. Giving his assurance, the FM mentioned that the country’s fiscal deficit will be brought down from 6.8% to 5.5% next year and 4% in the following year. The FM also mentioned that the government is identifying PSUs for disinvestment. He added that the amount raised from stake sales would be used for modernisation, upgradation and expansion of these units. However, he also made it clear that the government will retain ownership of these units by keeping 51% equity to itself.

The markets continued to scale higher during the previous two hours of trade on account of sustained buying activity witnessed across the index heavyweights. Stocks from the telecom, construction and power sectors are leading the pack of gainers, while select stocks from the cement, FMCG and software sectors are trading lower. The overall advance to decline ratio is poised at 3.5 to 1 on the BSE.

The BSE-Sensex and NSE-Nifty are trading firm, up by around 280 points and 90 points respectively. The BSE-Midcap and the BSE-Smallcap indices are also trading higher, up by around 3.7% and 3.9% respectively. The Rupee is trading at 48.70 to the Dollar.

Banking stocks are trading higher led by ICICI Bank, HDFC Bank and Axis Bank. HDFC Bank announced its 1QFY10 results yesterday. The interest income grew by 13% YoY on account of lower growth in consolidated advances. Consolidated advances (including Centurion Bank of Punjab’s (CBoP) loans) grew by 8% YoY during the quarter. This was primarily on account of shedding of some erstwhile CBoP loans - particularly those on two wheeler loans and credit cards during the quarter. While the CASA (current and savings account) level improved to 45% of total deposits in 1QFY10, net interest margins remained stable at 4.2% due to downward re-pricing of loans. Fee income base grew by 27% YoY in 1QFY10, thus the proportion of fee to total income improved to 22% during the quarter as against 20% in 1QFY09. The net profits grew by 30.5% YoY during the quarter. While due to the merger with CBoP the quality of HDFC Bank's asset book was impacted in FY09, the bank successfully contained further slippages and the net NPA to advances ratio remained at 0.6% in 1QFY10.

Power stocks are trading higher led by Reliance Power and Tata Power. As per a leading business daily, the Power Ministry is leaving no stone unturned in order to overcome the power deficiency and meet the rising demand in the country. As per the power ministry, the target for the 11th five year plan of adding 78,750 MW is on track and is likely to be completed by March 2012. The Power ministry is also mulling over a capacity addition target of 100,000 MW for the 12th five year plan. It may be noted that as per reports around 80,000 MW capacities are under construction and the government would be able to deliver 65,000 MW capacity additions. The government is encouraging contribution from private capital goods companies in order to meet the increasing demand for power equipments. In fact, as per reports four new indigenous factories are being set up to ensure there is no shortage of power equipments. The ministry has also set up a committee to look into the problems faced by independent power producers in executing the projects. It has also instructed Power Finance Corporation and Rural Electrification Corporation to increase lending for the projects. Currently, India has an installed generation capacity of 149,391 MW and faces a peak hour deficit of 12%.

The Indian markets remained firm during the previous two hours of trade on the back of persistent buying activity. Gains are being seen in stocks from the realty, metal and engineering sectors, while select stocks from the software and FMCG spaces are trading weak. The overall market breadth is positive, with gainers outnumbering losers in the ratio of 3 to 1 on the BSE.

The BSE-Sensex and NSE-Nifty are trading firm, up by around 150 points and 40 points respectively. The BSE-Midcap and the BSE-Smallcap indices are also trading higher, up by around 2.7% and 3.1% respectively. The Rupee is trading at 48.71 to the Dollar.

Sintex Industries announced its consolidated 1QFY10 results yesterday. The company's topline declined by 9% YoY during the quarter. The fall in sales was attributed to both the plastic and textile divisions. While the revenues from the plastic division, which contributes around 84% to total sales, witnessed a decline of 9% YoY during the quarter, the revenues from the textile division declined by 8% YoY (contributes 11% to total sales). Since the growth in expenses was proportionately lower, operating margins grew by 0.5% YoY to 13.2% in 1QFY10. Subsequently, higher other income and lower interest charges helped the bottomline in logging a growth of 7.3% YoY during the period. The stock is currently trading higher.

As per a leading business daily, the FMCG sector is expected to witness a modest double digit growth during the quarter ended June 2009. This is on account of various discounts offered by the FMCG companies on account of fall in input costs. Hence, the growth will primarily be volume driven rather than a value led growth. However, on account of down trading, regional players may see higher growth. It may be noted that as per the AC Nielsen report, the sector had witnessed a growth of 16.2% YoY during April to May 2009. This is lower than the 19% YoY growth reported last year. During the period of April to May 2009, we believe that the growth was lower due to lower inflation which led to price cuts. But, volume growth remained robust. Again most of the categories witnessed strong demand except for the soap and detergent segments. Companies like HUL and Marico had taken price cuts in some categories at the start of the year as down trading was seen. The FMCG stocks are currently trading lower led by HUL and Dabur India.

Continuing from where they left off yesterday, the Indian markets have opened the day's proceedings on a positive note. Engineering, metal and power stocks are leading the pack of gainers. However, select FMCG stocks are trading lower. The overall advance to decline ratio stood at 4.6: 1 on the NSE. As regards global markets, the US markets ended marginally higher yesterday led by Goldman Sachs' better-than-expected results. The European markets ended in the green, while the Asian markets are also trading higher currently.

The BSE Sensex is trading higher by around 120 points. The NSE Nifty is up 25 points. The BSE Midcap and the BSE Smallcap indices are trading higher by 2% each. The rupee is trading at 48.78 to the dollar.

Tata Steel is planning to go in for another round of layoffs at its European subsidiary, Corus, to overcome the slump in global demand. The news of layoffs comes barely 15 days after the company had announced the sacking of 2,045 employees. Tata Steel has already retrenched 5,500 employees across Europe since the beginning of the year. As per Worldsteel, an international trade body, steel consumption is expected to fall by 15% YoY in 2009. However, on the domestic front, the situation is improving. The company is raising the capacity of its Jamshedpur plant from 7 million tonne (MT) to 10 MT. The work will be completed by the middle of FY12. Further, as per the company's management, it does not foresee any problems related to demand in the company's domestic operations. While Indian steel demand is expected to go up by 6%-7% this year, Tata Steel's Indian operations is expected to sell about 25% more than what it did last year. Steel stocks are trading firm.

As per a leading business daily, cement consumption has increased 11% YoY during 1QFY10. The cement consumption during 1QFY10 was supported by delayed monsoon, at least in the western and northern regions. Also, large infrastructure projects were taking off across the country coupled with stimulus packages announced by the government which supported rural housing demand. In FY09, about 23 million tonnes (MT) of cement capacity went on stream, taking the total installed capacity in the country to 212 MT. As per the industry players, the additional cement capacity that came on stream in FY09 has been absorbed by the market, indicating that demand continues to be robust. The companies expect demand growth to sustain as government spending on infrastructure projects, as outlined in the Budget, gathers momentum. While this is a positive from a long-term perspective, however, in the medium term the upcoming capacities are expected to exert downward pressure on cement prices. Cement stocks are trading firm.

The stock markets had given thumbs down to the budget, as it lacked any clear signals for economic reforms. In what seems like a damage control exercise, the Finance Minster Pranab Mukherjee assured everyone yesterday that the reforms are definitely on. He has also promised return to fiscal prudence as soon as the crisis is over and a roadmap for disinvestment.

Mr. Mukherjee has said that while the government's borrowing programme was vital to supporting growth, the debt would not be monetised. He said that monetisation (refers to the printing of banknotes by central banks) occurs when the RBI lends to the government directly. As of now, the central bank will support the government through its open market operations. As for disinvestment, the Finance Minster has said that he is in talks with other ministries for finalising the list of public sector units for divesting the government's stake.

The government has so far signaled a great deal of emphasis on the aam aadmi. While the minister's assurances are welcome, it is finally action that counts. We have nothing against the 'aam aadmi' stand, but we hope it is not used as an excuse for stalling genuine reforms that are critical to improving the standard of living of the same 'aam aadmi'.

Recovery has begun slowly, says Roubini
Nouriel Roubini, the man who famously foresaw the global financial meltdown, says that the economy is beginning to make a recovery. He writes in his blog - "After the sharp contraction in economic activity in 2009, growth will reenter positive territory only in 2010."

However, he warns GDP growth is not the only metric to measure recessions. "Unemployment, industrial production, real manufacturing, wholesale retail trade sales and real personal income (less transfer) are all considered", he says.

As such, while the GDP will stop shrinking at the end of 2009, it will not be at least till mid 2010 before the other indicators turn positive.

Talking of recessions, we are reminded of what Warren Buffett had to say about stock picking during bad times - "You don't want to not buy stocks just because business is lousy at the time. That may be the very best time to buy stocks. In 1954, the Dow was up 50% and the country was in a recession. It was the best year I ever had in my life. And I've had other good years in recessions, so you don't want to say, it's a big mistake to say business is bad therefore I shouldn't buy stocks. That usually is the time to buy stocks."

BSE / NSE Share Market Report 15 July 2009

BSE / NSE Share Market Report 15 July 2009

The key benchmark indices rose for the second straight day as firm global markets boosted sentiment. The BSE 30-share Sensex jumped 399.54 points or 2.88%. The barometer index today, 15 July 2009, crossed the psychological 14,000 mark. Metal, power, capital goods and power stocks rose. Index heavyweight Reliance Industries (RIL) surged. The market breadth, indicating the overall health of the market, was strong.

Equities recovered in last two days after a recent steep slide. The Sensex has risen 852.92 points or 6.36% in last two trading sessions. The barometer index had 13.36% to 13,400.32 on Monday, 13 July 2009 from a high of 15,466.81 on 10 July 2009.

The Sensex is up 4,605.93 points or 47.74% in calendar year 2009, as on 15 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6,092.84 points or 74.66% as on 15 July 2009.

Finance Minister Pranab Mukherjee's statement on Tuesday that country aims to return to a path of fiscal prudence to ensure moderate interest rates helped soothe investor nerves. Higher fiscal deficit has been a major cause of concern for investors.

The market rose in early trade, extending Tuesday's (14 July 2009) 3.4% rally, on firm global stocks. It pared gains in mid-morning trade before recovering later. The market extended gains later. It soared in the last one hour of trade.

Finance Minister Pranab Mukherjee said on Tuesday that the government aims to return to a path of fiscal prudence at the earliest. He said the government intends to cut the deficit to 5.5% of GDP by the end of 2010/11, and further to 4 % in 2011/12, he said. About the stake sales in government firms he said Finance Ministry has initiated discussion with other ministries for identifying the public sector undertakings where a portion of government shareholding can be sold. This will be along with issue of fresh equity by the public sector undertakings to meet their fund requirements. The details are being worked out and would be announced in due course he added.

The Finance Minister also sought cooperation from political parties ruling different states for the introduction of Goods and Services Tax from 1 April 2010, saying it will lead to a sustained rise in tax revenue.

Finance Secretary Ashok Chawla today said the government is likely to continue front-loading its borrowing for the April-September 2009 period. He also said other ministries have been asked to send their stake sale plans in state-run firms to the finance ministry by the end of July 2009. The government will announce plans for stake sales in state firms in 3-4 weeks. There will be small stake sale in state firms and it will not be a strategic sale, he said. The Reserve Bank of India will support government's borrowing through bond buyback in open market operations.

Officials from India's central bank and the finance ministry will meet on Thursday to finalise the government's revised borrowing schedule for the April-September period, the Finance Secretary said.

Meanwhile, stock market investors will closely watch the progress of the monsoon. On Tuesday, 14 July 2009, the Jharkhand state government declared four of its 22 districts drought-hit. On the same day, the Assam government declared 14 out of its 27 districts drought-hit. Manipur has already declared all of its nine districts drought-hit. However, the meteorological department expects rains to pick up in the near-term, and is sticking to its forecast of a cumulative shortfall of only 7% from the long-period average for this year's South-West monsoon.

The government continues to be cautiously optimistic, its mood buttressed by accumulated food stocks of nearly 48 million tonne. Industry, too, reflects the mood, and believes that there is cause to worry only if the cumulative rainfall drops more than a fifth below normal. India depends heavily on monsoon rains as only 40% of its farmland has access to irrigation facilities.

The stock market has entered a crucial period of earnings. The market expectations are that in Q1 June 2009, the 30 stocks that comprise Mumbai's benchmark Sensex index could see an annual fall in sales of 4-8% and fall in profit at between 9-13%.

Indian investors continue to be the most optimistic lot in Asia and as much as 84% of those surveyed expect the stock market to rise in the third quarter of 2009, according to global financial services group ING.

Firm global stocks boosted the domestic bourses today. European stocks rose to a two-week high on Wednesday, as forecast-beating earnings from Intel, and Goldman Sachs reassured investors on the outlook for corporate profits. Key benchmark indices in France, Germany and UK were up by between 1.62% to 1.76%.

Asian stocks gained for a second day today, led by technology and mining companies, after US chip maker Intel Corporation's sales forecast exceeded analyst estimates and metal prices rose. Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan were up by between 0.08% to 3.41%.

The Bank of Japan left its overnight call rate unchanged at 0.1% at the conclusion of its two-day policy meeting Wednesday, as widely expected. The central bank said Japan's economy has stopped worsening and that business sentiment has stopped deteriorating, but to support the recovery, it said it would maintain its outright purchases of corporate bonds and commercial paper through the end of the year. The special liquidity-boosting measures had been scheduled to expire in September 2009.

Trading in US index futures indicated the Dow could rise 82 points at the opening bell today, 15 July 2009.

US markets closed slightly higher on Tuesday, 14 July 2009 as a positive start to earnings season was offset by a decline in banking stocks. The Dow gained 27.81 points, or 0.3%, to 8,359.49. The S&P 500 index added 4.79 points, or 0.5%, to 905.84. The Nasdaq Composite Index rose 6.52 points, or 0.4%, to 1,799.73.

In economic data, US retail sales rose in June 2009 for the second consecutive month, increasing 0.6%, the Commerce Department said. Separate figures from the Labor Department showed that US wholesale prices increased in June 2009.

Goldman Sachs also bettered analyst forecasts by reporting a 33% rise in quarterly earnings. Wall Street's largest surviving investment bank reported revenue of 13.6 billion against an estimate of 10.6 billion. Meanwhile in earnings, Intel reported a profit, excluding one-time items, of 18 cents a share in the second quarter, way ahead of analyst estimates.

The BSE 30-share Sensex was up 399.54 points or 2.88% at 14,253.24. At the day's high of 14,299.54, the Sensex rose 445.84 points in late trade. At the day's low of 13,891.04, the Sensex rose 37.34 points in mid-morning trade.

The S&P CNX Nifty was up 122.10 points or 2.97% to 4,233.50. Nifty July 2009 futures were at 4240.10, at a premium of 6.60 points as compared to the spot closing of 4233.50. Turnover in NSE's futures & options (F&O) segment surged to Rs 57,969 crore from Rs 54,305.52 crore on Tuesday, 14 July 2009.

BSE clocked a turnover of Rs 5431 crore, much higher than Rs 4323.61 crore on Tuesday, 14 July 2009.

The market breadth, indicating the overall health of the market, was strong. On BSE, 2,029 shares rose as compared with 559 that fell. A total of 88 shares remained unchanged.

From the 30 shares Sensex pack, 29 rose and 1 fell.

The BSE Mid-Cap index was up 4.15% and the BSE Small-Cap index was up 4.56%. Both the indices outperformed the Sensex.

The BSE Realty index (up 7.98%), the BSE Metal index (up 5.67%), the BSE Power index (up 4.77%), the BSE Capital Goods index (up 4.72%), the BSE PSU index (up 4.66%), the BSE Auto index (up 3.47%), the BSE Oil & Gas index (up 3.47%), the BSE Consumer Durables index (up 2.92%), outperformed the Sensex.

The BSE IT index (up 0.62%), the BSE FMCG index (up 1.38%), BSE TECk index (up 1.41%), the BSE Healthcare index (up 2.33%), the BSE Bankex (up 2.56%), underperformed the Sensex.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) rose 3.52% to Rs 1,875 on bargain hunting after a recent sharp fall. Recent reports suggest that the government is open to allowing private-sector refiners such as RIL and Essar Oil to access subsidy on domestic fuel sales. From a recent high of 2,084.95 on 29 June 2009 the stock had lost 13.12% to Rs 1,811.20 on 14 July 2009.

The Supreme Court, last week, declined to stay the Bombay High Court's verdict in a dispute over the sale of natural gas by Reliance Industries (RIL) to Reliance Natural Resources (RNRL). The Supreme Court didn't grant RIL' plea to stay the order of the Bombay High Court until the resolution of the case and issued notices to the companies and the Centre. Both companies have to reply to appeals filed by each other by 20 July 2009, when the matter is scheduled to be heard. The government must also respond by then, the court said.

RIL had moved the Supreme court, challenging the Bombay High Court judgment asking it to supply gas to the former at a price that is 44% lower than fixed by the government. In its appeal filed in the Supreme Court on Saturday 4 July 2009, Reliance Industries contended that the high court had erred in deciding the three terms - quantity, tenure and price of gas supply to power plants of Reliance Natural Resources (RNRL) affiliates.

Shares of oil exploration firms rose as crude oil rose snapping three days of declines, as stocks advanced and an industry report showed a decline in gasoline inventories in the US, the world's largest energy consumer. Cairn India rose 5.12%.

India's largest state-run oil exploration firm by revenue ONGC rose 3.33%. Crude oil for August delivery gained as much as 60 cents, or 1% to $60.12 a barrel on the New York Mercantile Exchange. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

PSU OMCs rose after a recent steep slide in crude oil prices. HPCL, BPCL and Indian Oil Corporation rose by between 0.94% to 2.24%. The recent steep fall in crude oil prices will reduce under-recoveries for PSU OMCs on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

But oil minister Murli Deora on Thursday, 9 July 2009 said that the government will roll back the Rs 4 a litre hike in petrol prices and the Rs 2 a litre increase in diesel rates if international crude oil prices stabilize between $50 and $60 a barrel. At the beginning of this month, the Government had raised petrol and diesel prices citing spike in international crude oil prices to $70 a barrel.

Contrary to market expectations, the Union Budget 2009-2010 did not include a roadmap for decontrol of fuel prices in the country even as the finance minister said an expert panel will be set up to look into the matter of fuel pricing.

Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 3.44% on Tuesday, 14 July 2009. Steel Authority of India, Hindalco Industries, Tata Steel, National Aluminum Company, Hindustan Zinc rose by between 5.03% to 8.22%.

India's largest copper maker by sales Sterlite Industries rose 4.1% on reports company is planning to raise up to $1 billion through a fresh issue of shares.

Realty stocks rose on bargain hunting after a recent steep slide. The government has provided a strong thrust to housing sector in the Union Budget 2009-2010. Unitech, Housing Development & Infrastructure, Indiabulls Real Estate, Omaxe, Ackruti City rose by between 4.96% to 13.14%.

India's largest realty player by market capitalization DLF jumped 7.18% on reports the company plans to raise Rs 1,900 crore by the end of this fiscal year for reducing debt through the sale hotel plots and its wind power business.

Capital goods stocks rose on a thrust on infrastructure development in last week's Union Budget 2009-2010. BEML, Crompton Greaves, Punj Lloyd, Siemens, Larsen & Toubro, Praj Industries rose by between 3.95% to 6.63%.

Finance Minister Pranab Mukherjee on 6 July 2009, provided a thrust on various infrastructure projects in the Budget which may benefit capital goods and construction firms in the form of increased orders. The government announced more spending for urban, water and road projects. The allocation to National Highway development program allocation was increased 23% to Rs 15948 crore.

India's largest electric equipment maker by sales Bharat Heavy Electricals rose 6.31% after Power Minister Sushil Kumar Shinde in a television interview said the 11th Plan target of adding 78,750 megawatt (MW) of power capacity was on track and that he was confident of achieving it by March 2012, when the 11th Plan ends. About 80,000 MW capacity is under construction currently, he said, adding that at the least, the government would be able to deliver 65,000 MW capacity addition. The stock had risen 4.34% on Tuesday.

Cement stocks rose as a thrust on infrastructure development in the Union Budget 2009-2010 may boost cement demand. ACC, Birla Corporation of India, Grasim Industries, Ultratech Cements, rose by between 1.79% to 5%.

Construction stocks extended Tuesday's gains after the road transport minister Kamal Nath on Tuesday said the government is looking to set up an organization to develop and manage expressways in the country. Era Infra Engineering, Hindustan Construction Company, IVRCL Infrstructure &Projects and Nagarjuna Construction Company rose by between 2.95% to 5.5%.

Power stocks rose on bargain hunting after a recent fall triggered by disappointment from the Budget. There was lack of any major sops in the Budget for the power sector. NTPC, Tata Power Company, Power Grid Corporation of India rose by between 1.68% to 6.63%.

Reliance Power rose 8.51% after company on Tuesday announced that it had achieved financial closure for its prestigious 1,200 MW Rosa power project in Uttar Pradesh.

India's largest energy distributor by sales and construction firm Reliance Infrastructure rose 4.79% extending yesterday's more than 9% gains on reports the company may win the order for Hyderabad metro rail project.

Auto stocks rose on hopes of good Q1 June 2009 results. Mahindra & Mahindra, Hero Honda Motors, Bajaj Auto, Ashok Leyland, TVS Motor Company, Maruti Suzuki India and Tata Motors rose by between 1.86% to 6.44%.

Auto stocks rose on hopes the rising auto sales is likely to be reflected in the results of these companies. Analysts expect good Q1 June 2009 results from auto firms on softening commodity prices and buoyant demand from rural India. Auto sales have been rising in the first six months of 2009 after seeing a steep decline in the second half of last year. New models, discounts and easing retail finance aided 14% rise in automobile sales to 9.17 lakh units in June 2009 over June 2008, the Society of Indian Automobile Manufacturers (SIAM) data showed earlier during the month.

IT stocks rose for the fourth straight day on positive sentiment for tech stocks globally after the world's biggest chipmaker, Intel reported better-than-expected Q2 earnings and gave an outlook that blew past forecasts. India's largest IT exporter by sales TCS rose 3.43%. India's third largest IT exporter by sales Wipro rose 3.15%.

But, Infosys fell 0.85% on profit taking after the recent strong gains triggered by the company raising the lower end of its annual forecast in dollar terms at the time of announcing Q1 June 2009 results before trading hours on Friday, 10 July 2009.

Shares of drug makers rose after the Finance Minister Pranab Mukherjee reduced customs duty on life saving drugs in the Budget. Ranbaxy Laboratories, Pfizer, Cipla, Lupin, Piramal Healthcare, Biocon, Sun Pharmaceutical Industries rose by between 0.02% to 5.62%.

Finance minister on 6 July 2009, reduced basic customs duty on influenza vaccine and nine other specified life-saving drugs used for treating breast cancer, hepatitis-B, rheumatic arthritis, etc.

The government has also reduced basic customs duty for two bulk drugs used in manufacturing these medicines from 10% to 5%. Bulk drugs are processed raw materials used in manufacturing the final doses of medicines.

Bank stocks rose after the Finance Minster on Tuesday said the government is committed to financial sector reforms. The minister's articulation of commitment to financial sector reforms suggests that greater foreign direct investment in insurance and pension reforms, issue that had been put in cold storage because of Left opposition during the UPA's last term, would now be expedited.

India's largest private sector bank by net profit ICICI Bank rose 2.45% after its American depository receipt (ADR) rose 3.52% on Tuesday, 14 July 2009.

India's biggest bank in terms of branch network State Bank of India (SBI) rose 3.24% after Chairman O P Bhatt said on Monday the bank's net interest margin may be over 2.5% in the year ending March 2010.

Axis Bank rose 3.41% extending gains for the third straight day after net profit rose 70.24% to Rs 562.04 crore on 33.64% rise in total income to Rs 3864.13 crore in Q1 June 2009 over Q1 June 2008. The bank announced the result during market hours on Monday 13 July 2009.

India's second largest private sector bank bank in terms of operating income HDFC Bank rose 1.54%. HDFC Bank's net profit rose 30.52% to Rs 606.11 crore on 21.86% rise in total income to Rs 5136.75 crore in Q1 June 2009 over Q1 June 2008. Other income jumped 75.9% to Rs 1043.70 crore in Q1 June 2009 over Q1 June 2008, due to spurt in fees and commissions. The bank announced the result during the market hours on Tuesday, 14 July 2009.

Shipping stocks rose after the Baltic Dry Index which measures changes in the cost of shipping commodities, jumped 4.1% on Tuesday, its first winning session this month, as concerns over a slow global economic recovery eased. Essar Shipping, Mercator Lines and Shipping Corporation of India rose by between 5.83% to 15.7%.

Some state-run firms gained on hopes the government may divest some of its holding. Hindustan Copper, MMTC, NMDC and Central Bank rose by between 2.16% to 9.99%.

Cals Refineries clocked highest volume of 3.11 crore shares on BSE. Reliance Natural Resources (1.92 crore shares), Suzlon Energy (1.83 crore shares), Unitech (1.46 crore shares) and Mahindra Satyam (1.41 crore shares) were the other volume toppers in that order.

Aban Offshore clocked the highest turnover of Rs 226.79 crore on BSE. Educomp Solutions (Rs 182.38 crore), ICICI Bank (Rs 172.65 crore), Suzlon Energy (Rs 172.11 crore) and Reliance Industries (Rs 166.75 crore) were the other turnover toppers in that order