Brokerage Recommenations 27th July 2009

Buy Tata Steel with a target of Rs 465 and then it can go to Rs 530, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 457, up 3.3% on the BSE.

Buy NIIT Ltd. with a target of Rs 75-90 and stop loss of Rs 57, says Hitendra Vasudeo, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 63, down 1.9% on the BSE.

Buy JK Paper with a target of Rs 35 and stop loss of Rs 28, says Neera Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 31, up 7.8% on the BSE.

Sell Nifty futures with a target of 4450 and stop loss of 4620, says Ashwani Gujral, technical analyst, on CNBC TV18, as closing market strategy.

Buy Mahindra Satyam with a target of Rs 110 and stop loss of Rs 96, says Salil Kapoor, technical analyst, on CNBC Awaaz, as closing market strategy.

Buy Neyvelli Lignite with a target of Rs 160 and stop loss of Rs 130, says Nitin Murarka, technical analyst, on Zee Business, as closing market strategy.

Buy GMR Infra with a target of Rs 155 and stop loss of Rs 144, says Prakash Gaba, technical analyst, on CNBC Awaaz, as closing market strategy.

Maintain Nifty longs with a target of 4640 and stop loss of 4530, says Rahul Mohindar, technical analyst, on CNBC TV18, as closing market strategy.

Buy Nifty futures with a target of 4640 and stop loss of 4540, says Salil Kapoor, technical analyst, on CNBC Awaaz, as closing market strategy.

In an F&O call, buy Nifty July futures with a target of 4590-4630 and stop loss of 4510, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. Till Nifty is above 4510 the momentum is intact and after a pause the market is likely to head upward, he says.

In an F&O call, buy Nifty July futures with a target of 4590-4650 and stop loss of 4480, says Salil Kapoor, technical analyst, on CNBC Awaaz.

In an F&O call, buy Nifty July futures with a target of 4700 and stop loss of 4387, says Anuj Dixit, technical analyst, on CNBC Awaaz. In the short term, the market may move sideways but the medium term trend is up, he says.

In an F&O call, sell Nifty July futures with a target of 4450 and stop loss of 4600, says Ashwani Gujral, technical analyst, on CNBC Awaaz. In the near term, if there is global weakness, the market may correct but then it is headed upwards, he says. Close to Nifty 4600 book part profits, he adds.

Buy Welspun Gujarat with a target of Rs 225 after which it can go to Rs 350, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 210, down 1.36% on the BSE.

Citi maintains hold on ICICI Bank with a medium-term target price of Rs 830 and Credit Suisse maintains underperform with a target of Rs 538, reports NDTV Profit. ICICI Bank is currently trading at Rs 754, down 1.75% on the BSE.

Buy Suzlon with a target of Rs 117-130 and stop loss of Rs 90, says Hitendra Vasudeo, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 105, up 1.64% on the BSE.

Buy L&T on dips and in staggered fashion, says Ashish Kapur of Invest Shoppe on CNBC Awaaz. It is the best infrastructure stock to be invested in, he adds. The stock is currently trading at Rs 1492, down 0.40% on the BSE.

Buy Biocon with a target of Rs 240 and stop loss of Rs 210, says Neera Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 219, down 1.37% on the BSE.

Buy DLF with a target of Rs 441-480 and stop loss of Rs 333, says Hitendra Vasudeo, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 413, up 5.04% on the BSE.

Post the disappointing RIL results, JP Morgan reduces its target price to Rs 2200 and Credit Suisse cuts its down to Rs 1494, reports NDTV Profit. RIL is currently trading at Rs 1923, down 4.5% on the BSE.

Buy Tata Steel with a target of Rs 490 and stop loss of Rs 400, says Neera Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 456, up 3.7% on the BSE.

Buy Jindal Steel with a target of Rs 3100 and stop loss of Rs 2600, says Rajesh Jain of SMC Global Securities on Zee Business. The stock is currently trading at Rs 3091, up 2.8% on the BSE.

Hold Gujarat Ambuja Export and exit at Rs 25, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 14, he adds. The stock is currently trading at Rs 20, up 2.7% on the BSE.

Buy Oracle Finance with a short-term target of Rs 1380, medium-term target of Rs 1450 and stop loss of Rs 1230, says Rajesh Jain of SMC Global Securities on Zee Business. The stock is currently trading at Rs 1340, up 0.38% on the BSE.

Hold GMR Infrastructure with target of Rs 180, says Prakash Gaba, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 125, he adds. The stock is currently trading at Rs 142.65, up 0.9% on the BSE.

Buy Tech Mahindra with target of Rs 860, says Hitendra Vasudev, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 784, he adds. The stock is currently trading at Rs 787, down 1.1% on the BSE.

Hold Reliance Power with target of Rs 190-210, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 160, he adds. The stock is currently trading at Rs 173, up 0.2% on the BSE.

Sell RPL with target of Rs 110-113, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 120.40, down 4.1% on the BSE.

Hold Tata Motors with target of Rs 411, says Hemen Kapadia, technical analyst, on NDTV Profit. It has support at Rs 357 and resistance at Rs 380, he adds. The stock is currently trading at Rs 367.20, down 1.7% on the BSE.

Hold ICICI Bank with targets of Rs 800 and then 950, says Hitendra Vasudeo, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 750, he adds. The stock is currently trading at Rs 758.80, down 1.1% on the BSE.

Buy Maruti with target of Rs 1500, says Ashwani Gujral, technical analyst, on CNBC TV18. It has support at Rs 1250, he adds. The stock is currently trading at Rs 1359.85, down 1.3% on the BSE.

Hold Videocon Industries with targets of Rs 190 and then 230, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 170, he adds. The stock is currently trading at Rs 182.95, down 1.7% on the BSE.

Hold Hanung Toys with target of Rs 90, says Pankaj Jain of Satguru Capital on Zee Business. Keep stop loss of Rs 63, he adds. It has resistance at Rs 83, he says. The stock is currently trading at Rs 74.25, up 1% on the BSE.

At noon, the market comes off the day's highs, slipping into the red. Sensex is trading at 15370, down 8 points from its previous close, and Nifty is at 4565, down 2 points. CNX Midcap index is up 1.2% and BSE Smallcap index is up 1.2%.

Buy Ashok Leyland with targets of Rs 38.50 and then 47, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 34.70, down 3.1% on the BSE.

Buy Monnet Ispat with target of Rs 300 in 3-6 months, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 240, he adds. The stock is currently trading at Rs 257, up 0.3% on the BSE.

Hold Jaiprakash Associates with short-to-medium target of Rs 270-300, says Hitendra Vasudeo, technical analyst, on CNBC Awaaz. Keep short-term stop loss of Rs 235 or long-term stop loss of Rs 214, he adds. The stock is currently trading at Rs 245.45, up 1.6% on the BSE.

Buy Gail with target of Rs 450 in four quarters, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 348, down 1.2% on the BSE.

The RIL (Reliance Industries) results are below estimates and a knee-jerk reaction is possible, says Raamdeo Agrawal of Motilal Oswal Securities on CNBC TV18. He believes that RIL is not likely to be a big outperformer for the next 2-3 quarters. Watch out for commodity plays, especially the cement companies, he adds. He expects no change in the Credit Policy tomorrow.

Buy Suzlon Energy with target of Rs 140, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 95, he adds. The stock is currently trading at Rs 105.70, up 2.2% on the BSE.

Hold Jaiprakash Associates with stop loss of Rs 228, says Prakash Gaba, technical analyst, on CNBC Awaaz. It is showing a good upmove, he adds. The stock is currently trading at Rs 246, up 1.9% on the BSE.

Hold Tata Motors with target of Rs 446, says Pankaj Jain of Satguru Capital on Zee Business. It has resistance at Rs 390, he adds. The stock is currently trading at Rs 369.10, down 1.2% on the BSE.

Hold Canara Bank with targets of Rs 290 and then 295, says Nitin Murarka of SMC Global on Zee Business. Keep short-term stop loss of Rs 260, he adds. The stock is currently trading at Rs 275.45, up 0.3% on the BSE.

Buy Tata Motors with targets of Rs 400 and then 450, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 367.20, down 1.7% on the BSE.

Buy Sesa Goa with target of Rs 270, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 218, he adds. The stock is currently trading at Rs 234.10, up 0.3% on the BSE.

Buy Tata Steel with target of Rs 465, says Rahul Mohinder, technical analyst, on CNBC TV18. The stock is currently trading at Rs 453.10, up 3% on the BSE.

Buy Jaiprakash Associates with target of Rs 260, says Rahul Mohinder, technical analyst, on CNBC TV18. The stock is currently trading at Rs 249.50, up 3.3% on the BSE.

Buy Escorts with intra-day target of Rs 70, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 62, he adds. The stock is currently trading at Rs 66.60, up 2% on the BSE.

Buy Balrampur Chini with intra-day target of Rs 115, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 105, he adds. The stock is currently trading at Rs 109.20, up 1.5% on the BSE.

Buy Ceat with intra-day target of Rs 135, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 127, he adds. The stock is currently trading at Rs 130.50, up 1% on the BSE.

Buy TCS at Rs 482 with intra-day target of Rs 491, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 475, she adds. The stock last traded at Rs 481.85, up 1.3% on the BSE.

Buy Emco with intra-day target of Rs 90, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 85, he adds. The stock last traded at Rs 86.50, down 1.8% on the BSE.

Buy Suzlon Energy at Rs 103 with intra-day target of Rs 108, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 100, she adds. The stock last traded at Rs 103.40, up 7.2% on the BSE.

RIL may see a 3-4% knee jerk reaction on disappointing results, says Deven Choksey of KR Choksey Securities on CNBC TV18. We have downgraded its FY10 EPS estimates by 4%, he adds. He believes that the market is likely to be range-bound with the upside capped around 4660 on the Nifty and says to watch out for bank stocks ahead of the Credit Policy tomorrow.

Buy Gail at Rs 353 with intra-day target of Rs 361, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 347, she adds. The stock last traded at Rs 352.20, up 1.9% on the BSE.

Closing Bell 24 July 2009

Closing Bell 24 July 2009

The Indian benchmark indices began the day's proceeding on a volatile note, but ended the day well above dotted line on account of intense buying activity witnessed in post noon session. The BSE-Sensex ended the day higher by around 145 points, while the NSE-Nifty closed higher by about 44 points. Stocks from the mid-cap and small-cap spaces also closed in the green, recording gains of 1.6% and 1.8% respectively. While buying activity was witnessed across sectors, stocks from the banking sector were at the receiving end. The advance to decline ratio was poised at 2.4 to 1 on the NSE.

Other Asian markets also ended the day in the positive. The European indices are currently trading firm. Rupee was trading at 48.34 against the US dollar at the time of writing.

As per a leading business daily, Shriram Transport Finance company (STFC), one of the largest asset financing NBFCs in India is raising Rs 10 bn with yield-on-redemption of up to 11.5% annually. The company is coming out with an issue of non-convertible debentures (NCDs) of Rs 5 bn. The company will have an option to retain over-subscription of up to Rs 5 bn. The commercial vehicle financer has raised funds in order to support the incremental growth in its loan book. The company is also looking to enter the equipment financing business with a focus on retail borrowers. The company's capital adequacy ratio stood at 16.35%. The stock of STFC closed in the red.

Ambuja Cements announced its results late last evening. The company reported a topline growth of 19.9% YoY during 2QCY09 led by higher volumes and realisations. The sales volumes were higher by 9.1% YoY, while the growth in realisations stood at 9.9% YoY. The growth in demand was sustained on account of the delayed monsoon, ongoing construction activity in rural and semi urban areas along with infrastructure activity. Operating profits growth was capped at 9.9% YoY as cost of operations continued to grow at a faster rate as compared to the topline. While power and fuel costs were moderate, the overall cost of operation was pushed upwards by higher raw material costs. Net profit declined by 43.7% YoY on account of an absence of extraordinary income which was present in 2QCY08. Growth in profits excluding extraordinary income stood at 7.1% YoY, which is equal to the growth in profit before tax. The board declared an interim dividend of 1.2 per equity share. Cement sector stocks closed mixed.

Total rainfall in India was 15% above normal in the week to 22 July, but was still 19% below normal for the 1st June to 22nd July period. Weak monsoons especially in the state of Bihar, the country's leading corn producer, and Uttar Pradesh, which produces more than half of India's sugarcane is likely to impact sowing of the crops adversely. Sugar output in UP is likely to fall by at least 500,000 tonnes, or 11%, in the new season that begins in October because of poor rains. The sugar production in the current year is expected to be the lowest in the last three years. During the sugar season 2007-08, the sugar production in the country fell to 26 million tons (MT) from 28 million tons in 2007-08. As against that, the production in the current year is estimated to be only 16.5 MT. From being an exporter, India's shift to importer is widely seen as one of the most important dynamics affecting the global sugar market. Expectations are growing that it will need substantial imports again in the new season to satisfy its domestic needs. This has pushed the sugar prices up. In fact, in the last one year sugar prices have registered a 70% increase.

The Indian markets gained ground during the previous two hours of trade led by heavy buying activity across sectors. Buying activity is led by stocks from the auto, realty and metal sectors, while select banking and energy stocks are trading weak. The overall market breadth is positive, with total gainers outnumbering the losers in the ratio of 1.9 to 1 on the BSE.

The BSE-Sensex and NSE-Nifty are trading firm, up by around 130 points and 50 points respectively. The BSE-Midcap and the BSE-Smallcap indices are also trading higher, up by around 1.5% and 1.7% respectively. The Rupee is trading at 48.33 to the Dollar.

Energy stocks are trading mixed. While ONGC is trading firm, Reliance Industries is in the red. ONGC announced its 1QFY10 results yesterday. The company's standalone topline declined by 26% YoY in 1QFY10. This was mainly on account of discontinuance of trading of MRPL products during the quarter as compared to Rs 25 bn from the same in 1QFY09. However, on a like to like basis, ONGC's topline declined by 15% YoY in 1QFY10. Operating margins increased from 58% to 64% as trading of MRPL products were stopped during the quarter. However, on a like to like basis operating margins showed a decline of 3% during the quarter. The standalone bottomline declined by 27% YoY, despite lower subsidy during the quarter. The impact of subsidies on the topline stood at Rs 4 bn in 1QFY10 as compared to Rs 98 bn in 1QFY09, while the impact on the bottomline stood at Rs 2 bn as compared to Rs 55 bn in 1QFY09.

Power stocks are trading firm led by Reliance Infrastructure and NTPC. As per a leading business daily, Reliance Infrastructure has invited bids to procure 1,500 MW of power in order to meet the demand for its Mumbai distribution license area. As per the tender document floated by the company, power will be procured for a period of 25 years. The company has already received the approval for inviting the bids for power procurement. Currently, Reliance Infrastructure distributes around 1,400 MW power in the suburbs of Mumbai for which 500 MW of power is procured from its own plant in Dahanu and 500 MW comes from Tata Power, while the remaining is purchased from the open markets. It may be noted that Tata Power has informed the company that it will not be supplying power from 2010 onwards. As a matter of fact, the company had purchased 11% more electricity from external sources during FY09. Also, its cost of electricity purchased had risen from Rs 5.1 per unit in FY08 to Rs 7.9 per unit in FY09 which had adversely impacted its margins during the fiscal. While, the procurement through tender will not solve the company's immediate power requirement, it would certainly help it increase the power supply in the future.

The Indian markets moved into the negative territory during the previous two hours of trade on account of selling activity among the index heavyweights. Currently, stocks from the energy and banking sectors are leading the pack of losers, while select auto and IT stocks are trading firm. The overall market breadth is positive, with total gainers outnumbering the losers in the ratio of 1.4 to 1 on the BSE.

The BSE-Sensex and NSE-Nifty are trading weak, down by around 10 points and 5 points respectively. However, the BSE-Midcap and the BSE-Smallcap indices are trading higher, up by around 0.9% and 0.7% respectively. The Rupee is trading at 48.40 to the Dollar.

Hotel stocks are trading mixed. Oriental Hotels is trading weak, while both Hotel Leelaventure and Indian Hotels are trading marginally higher. Oriental Hotels announced its 1QFY09 results yesterday. The company's topline has declined by 30% YoY during the period, mainly on account of the global economic slowdown that led to lower tourist arrivals. The company mainly caters to business and leisure travellers and both the segments were affected on account of the slowdown. This resulted in lower room rates and occupancy levels for the company. In fact, the industry occupancy rates have declined by 30% YoY during the first two months of the quarter in all major cities, which resulted in 10% to 15% fall in the room rates. While fixed costs remained intact on account of lower realisations and occupancy levels, overall it led to a fall in operating margins by 18% YoY to 16.2% during the quarter. All the cost heads rose during the quarter (on a % of sales basis) as compared to the corresponding quarter in the previous year. Lower sales, decline in operating profits along with higher depreciation and interest expenses resulted in a 94% YoY decline in net profits.

The competition in the IT outsourcing space is getting stiffer by the day. According to a leading business daily, Indian IT majors like Infosys, TCS, Wipro, Tech Mahindra etc. are vying with global players like Accenture and IBM in gaining a share in the US$ 1 bn IT outsourcing deal from British Petroleum (BP). BP's IT outsourcing contracts pertains to application development, system integration and infrastructure management across its different business units, which are fragmented between 30 different IT service providers, resulting in increased costs and complexity. BP seeks to cut its IT cost by 30% by consolidating its outsourcing between fewer vendors, for catering to more work at a lower rate. While the company has not disclosed the consolidated number of vendors, this will definitely benefit those who emerge as winners of the competition. It goes without saying that prospects are better for firms like Tech Mahindra and Infosys, which already work with the European oil major. The stocks from the IT space are trading in the green led by Infosys.

Tracking its global counterparts, the Indian indices have opened the day's trade on a buoyant note. While telecom, FMCG and energy stocks are witnessing selling pressure, power, construction and metal stocks are in favour. The overall advance to decline ratio is poised at 3.5:1 on the NSE. As regards global markets, the US and the European markets ended higher yesterday. The Asian markets are trading firm currently.

The BSE Sensex is trading higher by around 110 points. The NSE Nifty is up 20 points. The BSE Midcap and the BSE Smallcap indices are trading higher by more than 1% each. The rupee is trading at 48.32 to the dollar.

ITC announced its first quarter results yesterday. The net sales increased by 5% YoY on account of 23% YoY growth in sale of cigarettes and 16% YoY growth in sales from the paperboard, paper and packaging business. Price hike, volume growth and product mix improvement led to the strong growth by the cigarette division. However, this was offset by a decline of 49% YoY and 28% YoY in sales from the agri and hotels businesses respectively. For hotels, the cutting back on corporate travel along with the steep reduction in international travel as a fallout of the global financial crisis triggered a significant slide in occupancies and average room rates at ITC hotels. The FMCG segment saw a 10% YoY growth. The operating margins increased to 34% in 1QFY10, from 30% for 1QFY09. This improvement comes due to a drop in cost of goods sold which fell from 46% of sales in 1QFY09 to 39% this quarter. Net profits grew by 17% YoY. While the growth in the cigarette segment is positive, performance of the FMCG and hotel segment would continue to be under pressure. FMCG stocks are trading mixed.

Italian auto giant Fiat and Tata Motors are in talks for a joint marketing project to sell Ferraris and Maseratis in India. Both Ferrari and Maserati brands are under Fiat's control. Tata Motors with the acquisition of Jaguar and Land Rover for US$ 2.3 bn last year had marked its entry in the luxury segment. In India, Tata Motors and Fiat have a 50:50 joint venture Fiat Automobiles India Ltd, which manufactures engines, among others. Further, the two auto majors are also planning to introduce Nano in the Latin America market. Fiat has a strong presence in this region with Brazil being its second-biggest market after Italy. Tata Motors has plans to export Nano to Europe, South America and Southeast Asia. The Nano has passed the European "crash test" safety standard allowing it to be sold in the European market and a launch can be foreseen at the end of 2011. Identifying exports as a major growth area, over the past few years, Tata Motors has given a significant thrust on increasing its geographical presence. The revenues from exports accounted for 18% of the consolidated revenues in FY08. The management aims to increase this share to 25%. This will help the company to reduce its dependence on the domestic region. Auto stocks are in the green currently.

If the financial meltdown was truly global in scale, it also brought out a unified response from governments and central bankers worldwide, including Asia. And there was a broad consensus on the solution to the crisis - economic stimulus. Now that a few months have passed since the stimulus packages were announced, it is perhaps time to look around to see if the results are starting to show.

The results in Asia at least seem to be positive. For example, as per government data released yesterday, India's core industrial sector i.e., crude oil, oil products, coal, electricity, cement and steel has registered a growth of 4.8% YoY in the April-June quarter of this fiscal. This is as compared to 3.5% YoY growth that was recorded during the corresponding period last year.

Countries like South Korea are also doing well. As per Bloomberg, its economy in the last quarter grew at the fastest pace in almost six years. China and Singapore are also participating in a regional turnaround. In fact, the Asian Development Bank says that the East Asian economies (i.e., excluding Japan, South Asia and Central Asia) will rebound from the global economic crisis in a 'V-shaped' fashion.

It would seem that the stock markets have presaged this development as can be seen from the rise in the benchmark indices of India, China and South Korea since the start of this fiscal. Investors who kept their faith at a time when there was no cheer from economic data would be reaping rich rewards now. This opportunity was also available to long term investors in India.

BSE NSE Market Report 24 July 2009

BSE NSE Market Report 24 July 2009

Key benchmark indices surged, extending Thursday (23 July 2009)'s 2.61% rally as encouraging Q1 June 2009 results, signs of pick up in the economy, revival of monsoon and firm global markets, lifted sentiment. The BSE 30-share Sensex gained 147.92 points or 0.97% to 15,378.96, off 39.65 points from the day's high, and 210.44 up points from the day's low. The barometer index today struck its highest level in more than a month. But volatility was high.

The BSE Sensex advanced 634.04 points or 4.3% in the week ended Friday, 24 July 2009 extending previous week's 9.19% surge.

Coming back to today's trade, auto, realty and metal shares logged smart gains. However banking shares faltered ahead of quarterly monetary policy review meet on Tuesday, 27 July 2009. Among stock specific action, auto pivotals Tata Motors and Maruti Suzuki surged. ONGC and Infosys also logged decent gains.

Volatility was high. The market slipped into the red soon after an early surge triggered by rally in US stocks on Thursday, 23 July 2009. The market regained positive zone shortly. The market lost ground once again with the Sensex hitting intraday low in early afternoon trade. It once again regained positive zone later. The market surged in mid-afternoon trade as European stocks rose.

A string of robust corporate earnings along with rallying global markets had helped the BSE Sensex regain the 15,000 mark on Thursday with a 2.61% surge.

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 473 companies rose 17.40% to Rs 30972 crore on 5.4% growth in sales to Rs 206373 crore in Q1 June 2009 over Q1 June 2008.

European markets advanced today, 24 July 2009, reversed initial losses on improved economic data in the euro zone. Key benchmark indices in UK, Germany and France were up by between 0.08% and 0.63%.

The Markit euro-zone composite purchasing managers index rose to a 10-month high of 46.8 in July 2009, up form 44.6 in June 2009, according to data released Friday, 24 July 2009. Economists had expected a more modest rise to 45.3. A reading of less than 50 means a majority of managers saw a contraction in activity, while a reading of more than 50 signals expansion.

The Ifo Institute's German business climate index rose to 87.3 in July 2009, up from 85.9 in June 2009. That was better than the 86.5 reading that economists had forecast.

But data in UK was weak. Britain's economy shrank in the second quarter to register its biggest annual decline since comparable records began in 1955, official data showed on Friday, 24 July 2009. The Office for National Statistics said GDP fell by 0.8% on the quarter, taking the annual decline to 5.6%. GDP dropped 2.4% in the first quarter.

Asian markets extended gains for the ninth straight session today, 24 July 2009 on overnight gain in US stocks and after South Korea's economy grew at the fastest pace in almost six years. Key benchmark indices in Hong Kong, China, Singapore, South Korea and Japan rose by between 0.41% and 1.95%. However Taiwan's Taiwan Weighted index slipped 0.11%.

South Korea's economy grew at the fastest pace in more than five years in the second quarter from the previous quarter, adding to hopes that the recovery in Asia's fourth-largest economy is sustainable. Gross domestic product in the three months ended June 2009 rose a seasonally adjusted 2.3%, accelerating from a revised 0.1% gain in gross domestic product in the first quarter, a central bank estimate showed on Friday, 24 July 2009.

Meanwhile, the Asian Development Bank (ADB) said on Thursday, 23 July 2009 that emerging East Asia has entered the transition from recession to a possible V-shaped recovery, but policymakers must maintain monetary expansionary policies as risks remain. Growth could dip sharply in 2009 before regaining last year's pace in 2010, ADB said.

Trading in US index futures showed the Dow could rise 21 points at the opening bell on Friday, 24 July 2009. Dow futures were in red earlier in the day.

US markets surged on Thursday, 23 July 2009 sending the Dow Industrials above the key 9,000 mark for the first time in seven months as strong corporate profits and rebounding home sales spurred optimism about the economy.

The Dow gained 188.03 points, or 2.12%, to 9,069.29. The S&P 500 index rose 22.22 points, or 2.33%, to 976.29. The Nasdaq Composite Index rose 47.22 points, or 2.45%, to 1,973.60.

In economic data, sales of US existing homes rose for the third consecutive month in June 2009 by 3.6% to an annual rate of 4.89 million, up from 4.77 million in May 2009, the National Association of Realtors (NAR) said on Thursday, 23 July 2009.

New claims for US unemployment benefits jumped last week, as employers cut payrolls to cope with the severe recession, government data showed Thursday, 23 July 2009. The Labor Department said first-time claims for unemployment insurance benefits rose to a seasonally adjusted 554,000 in the week ended 18 July 2009, after a revised 524,000 in the preceding week.

Closer home, annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on on Thursday, 23 July 2009.

More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

In a move that my boost sentiment, foreign institutional investors (FIIs) and the non-resident Indians (NRIs) were allowed to invest in Indian Depository Receipts (IDR), according to the operational guidelines issued by the Reserve Bank of India on Wednesday, 22 July 2009. FIIs, including the Securities & Exchange Board of India (Sebi) approved sub-accounts of the FIIs registered with Sebi and NRIs may invest, purchase, hold and transfer IDRs of eligible companies resident outside India and issued in the Indian capital market, subject to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000.

Meanwhile, the latest economic data indicated improving economic activity. The six infrastructure industries -- crude oil, refining, coal, electricity, cement and steel -- together grew at an annual rate of 6.5% in June 2009, faster than the previous month's rise of 2.8%, data showed on Thursday, 23 July 2009. The infrastructure sector accounts for 26.7% of India's industrial output.

Inflation measured by the wholesale price index (WPI) declined 1.17% in the 12 months to 11 July 2009, as compared with previous week's annual decline of 1.21%, government data showed on Thursday, 23 July 2009.

Meanwhile, bankers expect the Reserve Bank of India (RBI) to maintain a status-quo in its key rates in its quarterly policy meet on Tuesday, 28 July 2009 following surplus liquidity in the banking system and low demand for credit. The central bank is also likely to lay out a more clear roadmap to conduct the government borrowing programme in a smooth manner and may hike the GDP and inflation forecast for the year ending March 2010 (FY 2010).

Earlier, the Reserve Bank of India (RBI) had cut the repo rate, or its key short-term lending rate, by 425 basis points to 4.75% in six steps since October 2008 as it tried to guard a slowing economy against the global financial crisis. The central bank also slashed the reverse-repo rate by 275 basis points since early December 2008 and brought down the cash reserve requirement by 400 basis points to 5% since early October 2008 to keep credit flowing.

The BSE 30-share Sensex was up 147.92 points or 0.97% to 15,378.96, its highest close since 11 June 2009. The Sensex opened 40.97 points higher at 15,272.01. The Sensex rose 187.57 points at the day's high of 15,418.61 in early trade, its highest level since 12 June 2009. The Sensex lost 62.52 points at the day's low of 15,168.52 in early afternoon trade.

The S&P CNX Nifty was up 44.80 points or 0.99% to 4,568.55, its highest closing since 12 June 2009. Nifty July 2009 futures were at 4578, at a premium of 9.45 points as compared to the spot closing.

The Sensex is up 5,731.65 points or 59.41% in calendar year 2009 as on 24 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,218.56 points or 88.45% as on 24 July 2009.

Coming back to today's trade, turnover in NSE's futures & options (F&O) segment was Rs 72,581.23 crore, lower than Rs 74,885.56 crore on Thursday, 23 July 2009. The BSE clocked a turnover of Rs 6815 crore, much lower than Rs 8078 crore on Thursday, 23 July 2009

The market breadth, indicating the overall health of the market, was strong. On BSE, 1773 shares advanced as compared with 923 that declined. 89 shares remained unchanged.

The BSE Mid-cap index gained 1.67% to 5,381.81 and BSE Small-cap index rose 1.81% to 6,050.20. Both these indices outperformed the Sensex

The BSE Realty index (up 4.26%), the BSE Consumer Durables index (up 2.37%), the BSE Auto index (up 5.14%), BSE Capital Goods index (up 1.49%), the BSE Power index (up 1.66%), the BSE IT index (up 1.93%), the BSE TECk index (up 1.87%), the BSE FMCG index (up 1.28%), the BSE Metal index (up 2.39%), outperformed the Sensex.

The BSE PSU index (up 0.42%), the BSE Healthcare index (up 0.53%), the BSE Oil & Gas index (up 0.06%), the BSE Bankex (down 0.88%), underperformed the Sensex.

Among the 30-member Sensex pack, 23 gained while the rest slipped

Auto stocks were the star performers of the day, with the BSE Auto index gaining over 5%, the most among sectoral indices on BSE, helped by a better-than-expected Q1 results from auto major Maruti Suzuki India during trading hours on Thursday. Shares of India's top small car maker by sales shot up 6.38% to Rs 1378 after striking a record high of Rs 1397.50 in intra-day today, 24 July 2009. The stock extended yesterday's 6.71% surge. Net profit jumped 25.26% to Rs 583.54 crore on a 31.01% increase in total income to Rs 6709.53 crore in Q1 June 2009 over Q1 June 2008.

Strong Maruti results boosted sentiment for other auto shares. India's top truck marker by sales Tata Motors soared 8.65% to Rs 369.80 after its American depository receipt (ADR) advanced 3.49% on Thursday, 23 July 2009. Meanwhile Tata Motors is reportedly conducting a feasibility study to sell its cars in Indonesia. It was the top gainer from the Sensex pack. The company will unveil its Q1 June 2009 results on 27 July 2009.

India's top tractor maker by sales Mahindra & Mahindra gained 3.64% ahead of its Q1 results on 30 July 2009. India's second largest bike manufacturer by sales Bajaj Auto rose 1.28% and India's largest bike manufacturer by sales Hero Honda Motors rose 3.86%

Ashok Leyland climbed 8.48% ahead of its Q1 June 2009 results to be announced on Monday, 27 July 2009.

Rally in auto counters spilled over to auto components manufacturers as their fortunes are closely linked to the performance of auto companies. Rico India (up 19.89%), Munjal Auto (up 13.36%), Munjal Showa (up 8.41%), Automotive Axles (up 10.71%), Bosch (up 2.97%), Amtek Auto (up 13.78%), and Subros (up 6.13%) edged higher.

Bharat Forge jumped 13.59% after the company expressed positive outlook for the future at the time of announcing Q1 June 2009 results. Bharat Forge's net profit tumbled 96.39% to Rs 0.96 crore on 43.98% fall in total income to Rs 363.82 crore in Q1 June 2009 over Q1 June 2008. The company announced the results before trading hours today, 24 July 2009.

Commenting on the results, Mr B N Kalyani chairman and managing director (CMD) of the company said the automotive industry in India has started showing early signs of recovery which is likely to strengthen in the coming quarters while the volumes in the US and European market are starting to stabilize at lower levels. Going forward, the company expects, this would translate into improved off-take for components, he added.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) lost 1.38% to Rs 2010. The stock moved in a band of Rs 2064.90 and 1985.20 in the day. The company's net profit fell 11.53% to Rs Rs 3636 crore on 21.64% decline in total income to Rs 32757 crore in Q1 June 2009 over Q1 June 2008. The results were unveiled after market hours today, 24 July 2009.

India's largest state-run oil explorer by market capitalisation ONGC galloped 3.41% to Rs 1130.10, rebounding sharply from day's low of Rs 1073.10. The company reported a 26.9% fall in net profit to Rs 4847.92 crore on a 25.8% decline in sales to Rs 14879.27 crore in Q1 June 2009 over Q1 June 2008. The results unveiled after market hours on Thursday, 23 July 2009, beat market expectations.

Deep Industries gained 4.95% after net profit rose 33.13% to Rs 2.17 crore on 83.09% rise in net sales to Rs 11.15 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after market hours on Thursday, 23 July 2009.

Gujarat State Petronet galloped 4.28% after net profit surged 146.6% to Rs 80.49 crore on a 76.4% rise in sales to Rs 210.82 crore in Q1 June 2009 over Q1 June 2008. The results were announced after market hours yesterday, 23 July 2009.

Metal stocks extended gains for the second day as LMEX, a gauge of six metals traded on the London Metal Exchange rose 1.29% on Thursday, 23 July 2009. Hindalco Industries (up 3.75%), JSW Steel (up 1.40%), Tata Steel (up 6.15%), Hindustan Zinc (up 0.30%) rose.

India's largest private sector copper marker by sales Sterlite Industries surged 2.77% after a near 7% rally in its American depository receipt (ADR) on Thursday, 23 July 2009.

National Alumnium Company rose 1.52% on reports it has hiked aluminium prices by Rs 5,000 a tonne or 5%.

Realty stocks rose on the government's thrust on the housing sector in the Union Budget 2009-10. DLF (up 6.53%), Unitech (up 2.78%), Housing Development & Infrastructure (up 4.30%), Parsvnath Developers (up 7.61%), Omaxe (up 6.04%), and Ackruti City (up 4.15%), advanced.

IT stocks rose on reports British Petroleum is likely to award outsourcing contracts worth up to $1 billion in August 2009. India's second largest IT firm by sales Infosys shot up 2%. India's third largest IT exporter by sales Wipro rose 0.60%. On 22 July 2009, Wipro announced better-than-expected Q1 results. India's largest IT exporter by sales TCS gained 1.51%. On 17 July 2009, TCS announced Q1 results that beat market expectations.

India's largest pharma company by sales Ranbaxy Laboratories rose 1.68%. The company's net profit jumped 2747.59% to Rs 675.45 crore on 12.98% fall in total income to Rs 1121.58 crore in Q2 June 2009 over Q2 June 2008. The results were declared after market hours today, 24 July 2009

India's largest pharma company by market capitalisation Sun Pharma shed 1.89% to Rs 1250. On Wednesday, 22 July 2009 investors in the US initiated a lawsuit seeking class action status against Sun Pharma's US subsidiary Caraco Pharmaceutical in the United States District Court. It was the top loser from the Sensex pack

On June 25, the US FDA had announced seizure of drug products from the company's three facilities in Michigan at Detroit, Farmington Hills and Wixom. Upto 33 different drugs were seized and the US FDA banned Caraco from manufacturing and selling these drugs in the US until there is assurance that the firm complies with manufacturing standards. The action followed Caraco's continued failure to meet the US FDA's current good manufacturing practices (cGMP) requirements

India's top cigarette maker by sales ITC rose 0.33% extending yesterday's 5.39% surge after its net profit rose 17.38% to Rs 878.80 crore on 5.14% rise in total income rose to Rs 4220.49 crore in Q1 June 2009 over Q1 June 2008. The results were unveiled during trading hours today, 23 July 2009

Banking shares were subdued ahead of the Reserve Bank of India's (RBI) quarterly monetary policy review meet on Tuesday, 28 July 2009. India's largest private sector bank by net profit ICICI Bank slipped 1.28% to Rs 765, after touching day's high of Rs 794.80. India's second largest private sector bank in terms of operating income HDFC Bank lost 0.55% to Rs 1448, off day's high of Rs 1470.50

India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.50% to Rs 1699.95 after striking day's high of Rs 1749.80. Finance secretary Ashok Chawla said on 22 July 2009 that the Centre will seek Cabinet approval to dilute government stake in the state-run bank.

India's largest dedicated housing finance company by sales, HDFC shed 1.36% to Rs 2402.20 on profit booking after recent strong gains. The finance firm reported 20.68% rise in net profit to Rs 564.92 crore on 22.86% rise total income to Rs 2,849.07 crore in Q1 June 2009 over Q1 June 2008. The lender announced its result during late trade on Wednesday, 22 July 2009.

Expectations about financial sector reforms remain. Chawla on 17 July 2009, said the government will introduce seven bills in parliament, including proposals for pension and banking reforms and efforts to raise the foreign investment limit in insurance companies

Infrastructure stocks rose on the government's thrust on the infrastructure sector in the Union Budget 2009-2010. Larsen & Toubro (up 0.17%), Bharat Heavy Electricals (up 1.32%), Lanco Infratech (up 5.49%), GMR Infrastructure (up 0.14%), and IVRCL Infrastructure (up 2.09%), rose

Road construction stocks were in action after the government on Thursday, 23 July 2009 cleared 15 highway projects totaling Rs 15,560 crore to be built under the public private partnership (PPP) mode in eleven states. Nagarjuna Construction Company (up 0.13%), Gammon India (up 0.52%), J Kumar Infraprojects (up 2.31%), IRB Infrastructure (up 4.80%), and Unity Infraprojects (up 0.25%) gained.

Telecom shares rose after the government on Thursday, 23 July 2009 imposed a three-year lock-in clause on stake sales by the owners of telecom companies, which were granted telecom licences last year.

India's second largest cellular services provider by sales Reliance Communications rose 0.46%.

Idea Cellular Services jumped 4.88% after net profit rose 14.7% to Rs 309.21 crore on a 29.7% increase in sales to Rs 2817.94 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours yesterday, 23 July 2009.

India's largest listed cellular services provider by sales Bharti Airtel settled at Rs 415.90 after the company's shares turned ex-split from Rs 10 per share to Rs 5 per share. The stock had settled at Rs 813.90 on Thursday, 23 July 2009.

Select FMCG stocks gained on fresh buying after revival in monsoon. Nestle India jumped 4.46% to Rs 2093 after a bulk deal of 51115 shares was struck on the counter at Rs 2015 per share on the BSE at 10:48 IST.

Godrej Consumer Products (up 6.47%), United Spirits (up 2.13%), Britannia Industries (up 2.03%), and Nirma (up 1.01%), gained. FMCG companies derive substantial revenue from rural sales.

Mahindra Satyam was the top traded counter on BSE with turnover of Rs 359.47 crore followed by Suzlon Energy (Rs 330.74 crore), Reliance Industries (Rs 266.48 crore), Tata Steel (Rs 231.14 crore), and DLF (Rs 227.32 crore).

Mahindra Satyam was also the volume topper on BSE clocking volume of 3.38 crore shares followed by Suzlon Energy (3.27 crore shares), Cals Refineries (2.55 crore shares), Unitech (2.29 crore shares), and Ispat Industries (2.23 crore shares).

Apar Industries surged 6.41% after net profit rose 27.57% to Rs 24.48 crore on 6.76% fall in net sales to Rs 503.25 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after market hours on Thursday, 23 July 2009.

Ambuja Cements declined 1.91% after net profit fell 43.74% to Rs 324.65 crore on 18.16% rise in net sales to Rs 1,847.41 crore in Q2 June 2009 over Q2 June 2008. The company declared its results after market hours on Thursday, 23 July 2009.

Shoppers Stop galloped 16.05% after Reliance Capital acquired 5.38 lakh shares in the retailer at an average price of Rs 162.01 a share in a bulk deal on the BSE on Thursday, 23 July 2009.

Essel Propack was locked at upper limit of 5% after the company posted net profit of Rs 5.24 crore in Q2 June 2009 as against net loss of Rs 9.75 crore in Q2 June 2008, on a consolidated basis. The company announced the results after market hours yesterday, 23 July 2009.

BSE NSE Market Voices 24 July 2009

BSE NSE Market Voices 24 July 2009

Thanks to frenzied buying in realty, auto, metal and information technology stocks, the market ended on a high note today. Firm global trend, fairly buoyant quarterly results and optimism about global economic recovery lifted the market up today. After some listless movements, the Sensex ended the session at 15,374.59 (provisional) with a gain of 143.55 points or 0.94%. Earlier, after vaulting to 15,418.61 in opening trades, the Sensex had tumbled to 15,168.52. The Nifty closed at 4569.05, up 45.30 points or 1% over its previous close. In intra-day trades, the Nifty hit a high of 4578.75 and a low of 4504.85.

Tata Motors shot up by over 8% today. Maruti, Hero Honda and M&M also closed on a high note, gaining between 3.5% and 6.5%. DLF ended stronger by around 6.5%.

Tata Steel, JP Associates, HUL, Hindalco, ONGC, Tata Power and Sterlite gained 2.5% - 6.5%. Infosys, Grasim, NTPC, TCS and BHEL also rose sharply. Suzlon, Idea Cellular, HCL Tech, ABB and Unitech moved up by 3% - 8%. Cairn, Jindal Steel, RPower, Ranbaxy, GAIL, Reliance Capital and Nalco also closed with strong gains. Midcap and smallcap stocks too had a good outing today.

RIL ended a per cent down on cautious trades ahead of results. Bharti, Sun Pharma, SBI, HDFC, ICICI Bank and ACC were subdued. The market breadth was strong right through the session.

Essar Oil touched an intraday high of Rs 142 and an intraday low of Rs 139. At 2:12 pm, the share was quoting at Rs 140.65, up Rs 3.30, or 2.40%.

Ranbaxy Laboratories touched an intraday high of Rs 284.35 and an intraday low of Rs 275.55. At 1:55 pm, the share was quoting at Rs 280.25, up Rs 5.85, or 2.13%

Dr Reddys Laboratories touched an intraday high of Rs 820.85 and an intraday low of Rs 789. At 1:52 pm, the share was quoting at Rs 816, up Rs 29.60, or 3.76%.

DLF touched an intraday high of Rs 385.70 and an intraday low of Rs 372. At 1:54 pm, the share was quoting at Rs 385.30, up Rs 15.35, or 4.15%.

HDIL (Rs 263) has come a long way from a dismal low of Rs 63 it had touched early March this year.

The stock can move up further. A rise to Rs 320, and in the event of a strong breakout there, a surge to Rs 360 -375 is possible.

Eveready Industries has near term target of Rs 50, says SP Tulsian, Investment Advisor, on CNBC-TV18

Investors with some appetite for risk can pick up realty stocks at slight declines. Though a sustained upmove may remain elusive, a few sharp rallies are likely in select stocks in the realty space.

One has to be selective and choose stocks of firms with a fairly good track record.

Shriram Transport Finance Company Limited has reported a decent surge in net profit. The Company has posted a profit after tax of Rs 164.41 crore for the quarter ended June 30, 2009 on a total income of Rs 1034.96 crore. For the corresponding quarter last fiscal, the company had posted a net profit of Rs 143.61 crore.

The stock, which tumbled to Rs 291 following the announcement of results, is trading nearly 2% down at Rs 301 now.

Havells India touched an intraday high of Rs 315.65 and an intraday low of Rs 287.05. At 12:52 pm, the share was quoting at Rs 310.50, up Rs 25.15, or 8.81%

Mangalore Refinery and Petrochemicals, MRPL touched an intraday high of Rs 84.50 and an intraday low of Rs 82.80. At 12:47 pm, the share was quoting at Rs 83.55, up Rs 1.25, or 1.52%.

Sterlite Industries was among the major gainers on the Sensex. It touched an intraday high of Rs 658.85 and an intraday low of Rs 637. The share was quoting at Rs 655.50, up Rs 22.80, or 3.60%.

With crude oil prices surging higher on hopes of a rise in demand, there is a likelihood of Cairn India rising sharply from current levels. One holding the stock can stay invested in the counter and look at buying more at dips.

Firstsource Solutions touched an intraday high of Rs 25.55 and an intraday low of Rs 23.10. At 1:18 pm, the share was quoting at Rs 25.45, up Rs 2.40, or 10.41%.

Bharti Airtel has touched an intraday high of Rs 440 and an intraday low of Rs 410. At 12:39 pm, the share was quoting at Rs 420.20, up Rs 13.25, or 3.26%.

RComm (cmp Rs 276) can move on to Rs 282 - 285 this afternoon if the market's recovery gathers a bit of momentum. One holding the stock with a short or medium term view can continue to stay invested.

Bosch Limited's net profit slipped to Rs 1882.70 million for the quarter ended June 30, 2009 from Rs 2197.20 million for the quarter ended June 30, 2008. Total income decreased from Rs 13356.70 million for the quarter ended June 30, 2008 to Rs 13113.30 million for the quarter ended June 30, 2009. The thinly traded stock is up 2.85% at Rs 3536 now.

Tulip Telecom touched an intraday high of Rs 982.15 and an intraday low of Rs 920. At 12:36 pm, the share was quoting at Rs 968, up Rs 57.80, or 6.35%...

Mahindra Lifespace Developers touched an intraday high of Rs 294.95 and an intraday low of Rs 287. At 12:27 pm, the share was quoting at Rs 290.80, up Rs 5.40, or 1.89%.

S Kumars Nationwide touched an intraday high of Rs 42.10 and an intraday low of Rs 39.25. At 12:19 pm, the share was quoting at Rs 40.80, up Rs 1.85, or 4.75%.

Most of the markets in the Asian region are trading sharply higher today on strong earnings and some better than expected economic reports. However, the mood on the Indian bourses remains a bit cautious ahead of some key results, including that of Reliance Industries. Though a rebound from lower levels is not ruled out, the undertone is likely to remain somewhat cautious right through the session today.

CESC Limited has posted a net profit of Rs 105 crore for the quarter ended June 30, 2009 as compared to Rs 94 crore for the quarter ended June 30, 2008. The stock is up with a modest gain at Rs 292. Long term investors can hold the stock with a stop loss near Rs 165, its 52-week low.

Avoid DLF, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Expect higher level in Punj Lloyd, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

One holding capital goods heavyweights L&T and BHEL can stay invested in them for long term.

There may be a few weak spells for these stocks in the near term and one can use sharp dips to increase exposure to the counters.

Avoid India Cements, Ambuja Cements, says Sanju Verma, CEO-Institutional Business, Proactive Universal Group, on CNBC-TV18

SBI (cmp Rs 1703) can be bought for intra-day if it recovers to Rs 1722 and stays firm for a while. One holding the stock with a long term view can stay invested and buy more of it at sharp declines. The stock is likely to face resistance around Rs 1810. A breach there could lift the stock past Rs 1900.

GMR Infrastructure (cmp Rs 141) can move up to Rs 155 and a strong breakout there could result in a surge to Rs 170 or even higher. The stock can be retained with a stop loss at Rs 115 - 120 levels.

Buy Idea Cellular on dip, says Sukhani, Technical Analyst, on CNBC-TV18

Tata Steel looks cheap, says Sanju Verma, CEO-Institutional Business, Proactive Universal Group, on CNBC-TV18

Gujarat State Petronet, GSPL touched a 52-week high of Rs 67.60. At 10:26 am, the share was quoting at Rs 67.20, up Rs 4.10, or 6.50% It was trading with volumes of 2,078,818 shares. Yesterday the share closed up 3.10% or Rs 1.90 at Rs 63.10.

Ambuja Cements has posted a net profit for the period of Rs 324.65 crore for the quarter ended June 30, 2009 as compared to Rs 577.02 crore for the quarter ended June 30, 2008. Total Income has increased from Rs 1610.57 crore for the quarter ended June 30, 2008 to Rs 1916.58 crore for the quarter ended June 30, 2009. The stock, currently trading at Rs 95, can be picked up at slightly lower levels for long term.

Indian Oil Corporation - Sell below 527 with a stop loss of 531

Bharat Forge has posted a net profit of Rs 9.60 million for the quarter ended June 30, 2009 as compared to Rs 265.60 million for the quarter ended June 30, 2008. Total Income has decreased from Rs 6494.50 million for the quarter ended June 30, 2008 to Rs 3638.20 million for the quarter ended June 30, 2009. Despite the fall in earnings, the Bharat Forge stock is up by 3.6% at Rs 165. One holding the stock with a long term view can stay invested for now. Fresh buying can be considered at sharp dips.

Axis Bank - Buy above 898 for the targets of 912 / 918 / Higher with a stop loss of 890

Hindalco - Buy above 89 for the target of 91 / 93 / Higher with a stop loss of 88

The market opened on a positive note this morning on strong global cues. The Sensex opened 41 points up at 15,272 and vaulted to 15,418.61 in a flash and is up by 117 points or 0.77% at 15,348 at present.

The Nifty has gained 33 points or 0.75% at 4556.75.

Idea Cellular, Suzlon, Infosys, Unitech, RPower, Cairn, DLF, Nalco, Sterlite and Tata Steel are the top gainers.

Suzlon Energy: Buy above 97.30 for the target of 99 / 101 / higher with a stop loss of 96.30

Brokerage Recommendations 24 July 2009

Brokerage Recommendations 24 July 2009

If one wants to invest Rs 1 lakh in the market now, spread out the portfolio and accumulate GAIL, HUL, PNB, BoB, NTPC and Alstom Projects, says Salil Kapoor of Kapoor & Sharma Company on Zee Business.

Buy Unitech with a target of Rs 100-120, says Alok Nanavati, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 87, up 3% on the BSE.

Buy Shree Cements with a target of Rs 1550, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1446, up 2.5% on the BSE.

Buy Kotak Mahindra Bank with a target of Rs 685 where one can exit, says Salil Kapoor of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 635, down 0.79% on the BSE.

Buy Sesa Goa with a target of Rs 275, says Alok Nanavati, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 233, down 0.41% on the BSE.

Buy Kesoram with a target of Rs 450, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 369, down 0.91% on the BSE.

Buy GAIL with a target of Rs 500 in 24 months, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 352, up 1.92% on the BSE.

Buy Unitech with a target of Rs 93 and stop loss of Rs 85, says Prakash Gaba, technical analyst, on CNBC Awaaz, as closing market strategy.

Buy Mahindra & Mahindra with a target of Rs 920 and stop loss of Rs 790, says Ashwani Gujral, technical analyst, on CNBC Awaaz, as closing market strategy.

Buy Suzlon with a target of Rs 109 on Monday and stop loss of Rs 99, says Nitin Murarka of SMC Global Securities on Zee Business as closing market strategy.

Buy Axis Bank with a target of Rs 975 and then Rs 1000, says Alok Nanavati, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 892, up 0.2% on the BSE.

Buy Bank of Rajasthan with a target of Rs 68 and support at Rs 35, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 59, up 19.9% on the BSE.

Buy Mahindra Satyam with a target of Rs 120-122 where one can exit, says Mitesh Thakkar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 104, up 0.8% on the BSE.

In an F&O call, buy Nifty July futures with a target of 4770 and stop loss of 4450, says Prasad Kushe, technical analyst, on CNBC Awaaz. This target is likely to be met by next week, he says. A cash closing of Nifty above 4557 and futures closing for Nifty above 4578 will mean it is headed higher, he says.

In an F&O call, buy Nifty July futures with a target of 5000 and stop loss of 4387, says Rakesh Bansal, technical analyst, on CNBC Awaaz.

In an F&O call, buy Nifty July futures with a target of 4700 and stop loss of 4350, says Hardik Jain, technical analyst, on CNBC Awaaz. Go long on every correction, he adds.

Buy Alston Projects with a target of Rs 525-565 and stop loss of Rs 505, says Salil Kapoor of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 523, up 0.66% on the BSE.

Buy Unitech with a target of Rs 90-108, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 87, up 3.7% on the BSE.

Hold DLF with a target of Rs 410-415 after which it can go to Rs 480 where one can exit, says Salil Kapoor of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 384, up 4.1% on the BSE.

Buy DLF with a target of Rs 390, says Mitesh Thakkar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 384, up 4.1% on the BSE.

Traders can buy Ranbaxy on dips with target of Rs 296, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 279, up 2% on the BSE.

Buy Ranbaxy with a target of Rs 290 and stop loss of Rs 267, says Salil Kapoor of Kapoor & Sharma Company on Zee Business. The stock is currently trading at Rs 279, up 2% on the BSE.

Our market is in sync with global markets and will continue to move with them, says Anu Jain of India Infoline, on CNBC TV18. Nifty has support at 4510 and resistance at 4613 after which it will go higher, she adds. Nifty resistance zone is 4650-4710 where one will see profit booking but buying will emerge at dips too, she says.

Buy Sterlite Industries with a target of Rs 725, says Mitesh Thakkar, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 656, up 3.7% on the BSE.

Sell RIL on rally at Rs 2120-2376, says Ashu Baggri, technical analyst, on NDTV Profit. It is in a downtrend now, he adds. The stock is currently trading at Rs 2013, down 1.27% on the BSE.

Buy GAIL with a target of Rs 365 where one can book profits and stop loss of Rs 336, says Salil Kapoor of Kapoor & Sharma Company, on Zee Business. The stock is currently trading at Rs 351, up 1.87% on the BSE.

Buy Birla Corporation with a target of Rs 360, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 298, down 0.17% on the BSE.

Hold Binani Cement with a target of Rs 63 where one can exit and stop loss of Rs 55, says Hormuz Maloo, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 59, up 1.19% on the BSE.

Buy Welspun Gujarat with a target of Rs 245-269 and it has support at Rs 185, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 211, up 1.34% on the BSE.

Hold Satyam with target of Rs 150 in 12-18 months, says DD Sharma of Anand Rathi Securities on NDTV Profit. The stock is currently trading at Rs 106.45, up 2.3% on the BSE.

Book profits in Satyam at Rs 114 and buy again when it goes down to Rs 80, says Ashu Baggri, technical analyst, on NDTV Profit. The stock is currently trading at Rs 106.25, up 2.1% on the BSE. » Send to friends

12:50 PM - Hold HDIL with long-term targets of Rs 325 and then 350 plus, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. Buy more at Rs 220, he adds. The stock is currently trading at Rs 255.85, up 1.8% on the BSE. » Send to friends

12:44 PM - Hold Gitanjali Gems with stop loss of Rs 90, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 110 crossing which it can go to Rs 125, he adds. The stock is currently trading at Rs 100, up 1.1% on the BSE.

Hold Hindalco with target of Rs 108, says Ashu Baggri, technical analyst, on NDTV Profit. Keep stop loss of Rs 78, he adds. The stock is currently trading at Rs 92.80, up 2.3% on the BSE.

Hold RIL for 30-40% returns in 12-18 months, says P Phani Sekhar of Angel Broking on CNBC Awaaz. The stock is currently trading at Rs 1992.55, down 2.2% on the BSE.

The most reachable target for the markets would be about 4760 to 4700, says Sudarshan Sukhani, technical analyst, on CNBC TV18. According to him, markets were becoming fairly over-bought in the short term and so rallies should be used to take profits rather than enter.

Hold Shree Cements and exit at Rs 1550, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. It is in overbought territory and on correction it can show very low levels, she adds. The stock is currently trading at Rs 1452.15, up 2.9% on the BSE.

Hold IDFC with short-term stop loss of Rs 125 and long-term stop loss of Rs 115, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 133 crossing which it can go to Rs 150, he adds. The stock is currently trading at Rs 131.55, up 0.6% on the BSE.

Hold Aban Offshore with short-to-medium target of Rs 1065, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. The stock is currently trading at Rs 975, up 0.9% on the BSE. » Send to friends

11:52 AM - Hold HCC with target of Rs 129 in 2-3 months, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. It has support at Rs 105, she adds. The stock is currently trading at Rs 111.80, up 0.3% on the BSE.

China and India look like the strongest economies in the region both this year and the next, says Daniel McCormack of Macquarie Securities on CNBC TV18. There have been broad-based upward revisions to earnings in June, but at over 16x forward price to earnings, India is too expensive for us to be overweight currently, he adds.

Hold BHEL with long-term targets of Rs 2400-2500, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. The stock is currently trading at Rs 2203, up 1.6% on the BSE.

Hold Jaiprakash Associates with stop loss of Rs 222, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 235 crossing which it can go to Rs 255-260, he adds. The stock is currently trading at Rs 233.45, up 1.7% on the BSE.

Buy RIL only if it closes above Rs 2100, says Hardik Jain, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2033.70, down 0.2% on the BSE.

Hold ITC with targets of Rs 246 and then 265, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. Keep trailing stop loss of Rs 216-218, he adds. The stock is currently trading at Rs 225, down 2.2% on the BSE.

Hold GMR Infra with short-term stop loss of Rs 136 and long-term stop loss of Rs 115, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 148 crossing which it can go to Rs 170, he adds. The stock is currently trading at Rs 142.75, up 1.6% on the BSE.

Buy Mahindra & Mahindra with target of Rs 880, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 750, he adds. The stock is currently trading at Rs 822, up 2.5% on the BSE.

Buy DLF with long-term view, says Deepak Mohoni, technical analyst, on CNBC Awaaz. The downside volatility is less in this stock, he adds. The stock is currently trading at Rs 377, up 2% on the BSE.

Hold JSW Steel with stop loss of Rs 570, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 640 crossing which it can go to Rs 710, he adds. The stock is currently trading at Rs 630.40, up 1.7% on the BSE.

Buy ONGC on dips, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. The stock is currently trading at Rs 1080.90, down 1.1% on the BSE.

Nifty can go up to 4700 and so one should buy at lower levels, says Hardik Jain, technical analyst, on CNBC Awaaz. He sees support at 4350-4300.

Hold DLF with stop loss of Rs 355, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 378 crossing which it can go to Rs 420, he adds. The stock is currently trading at Rs 376.70, up 1.9% on the BSE.

Buy Ispat with intra-day target of Rs 24.50, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 21, he adds. The stock is currently trading at Rs 22.25, up 0.7% on the BSE.

Buy JK Lakshmi Cement with intra-day target of Rs 138, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 122, he adds. The stock is currently trading at Rs 131.70, up 3.2% on the BSE.

Buy Essar Oil with intra-day target of Rs 146, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 135, he adds. The stock is currently trading at Rs 140.10, up 2% on the BSE.

The market opens on a good but quiet note, in the steps of positive global cues. Earlier, the US markets rallied to their best levels in months and the Dow and S&P 500 closed at their 2009 high. Asia is trading firm. Sensex is trading at 15338, up 113 points from its previous close, and Nifty is at 4558, up 34 points. CNX Midcap index is up 1.2% and BSE Smallcap index is up 1.1%. The market breadth is positive with advances at 575 against declines of 66 on the NSE.

Buy Aban Offshore at Rs 966 with intra-day target of Rs 1020, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 946, she adds. The stock last traded at Rs 966.15, up 8.2% on the BSE.

Buy Eveready Industries with intra-day target of Rs 46, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 41, he adds. The stock last traded at Rs 42.15, up 17.9% on the BSE.

Buy Sterlite Industries at Rs 633 with intra-day target of Rs 649, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 620, she adds. The stock last traded at Rs 632.70, up 5.2% on the BSE.

Reliance is likely to surprise the street as I expect the company to report profits between Rs 4350-4375 crore in Q1, says Deven Choksey of KR Choksey Securities on CNBC TV18. He believes that the undertone in the market is positive on the back of strong global cues. I expect the Nifty range to shift above 4750 in the short-term, he adds.

Buy ACC at Rs 854 with intra-day target of Rs 876, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 840, she adds. The stock last traded at Rs 854.65, up 5.8% on the BSE.

BSE / NSE Market Report 23 July 2009

Market Report 23 July 2009

Key benchmark indices rallied, snapping losses in the preceding two trading sessions, on stellar Q1 June 2009 earnings from some Sensex stocks and positive economic data. Maruti Suzuki, ITC and ACC unveiled forecast beating earnings today, 23 July 2009. The BSE 30-share Sensex jumped 387.92 points or 2.61% to 15,231.04. The barometer index today regained the psychological 15,000 mark and the 50 unit S&P CNX Nifty surged past 4,500 level.

Shares of Sun Pharma gained 1.62% in highly volatile trade after plunging as much as 7.70% in early trade. Maruti Suzuki, ITC and ACC logged smart gains on strong Q1 June 2009. However Bharti Airtel faltered as average revenue per user dipped.

Today's market rally was accompanied by higher volume. BSE's cash market turnover amounted to Rs 8030 crore as compared with Rs 6672 crore on Wednesday, 22 July 2009. Apart from upbeat Q1 results, positive infrastructure data and strong Asian stocks also bolstered bulls. All the sectoral indices on BSE logged gains.

After a firm opening triggered by higher Asian stocks, the market soon came off the higher level. A bout of volatility was witnessed later. The Sensex climbed to a fresh intraday high in mid-afternoon trade.

The market recovered today after last two days' slide. The BSE Sensex had lost 347.89 points or 2.29% in the previous two trading sessions.

In a move that my boost sentiment, foreign institutional investors (FIIs) and the non-resident Indians (NRIs) have been allowed to invest in Indian Depository Receipts (IDR), according to the operational guidelines issued by the Reserve Bank of India on Wednesday, 22 July 2009. FIIs, including the Securities & Exchange Board of India (Sebi) approved sub-accounts of the FIIs registered with Sebi and NRIs may invest, purchase, hold and transfer IDRs of eligible companies resident outside India and issued in the Indian capital market, subject to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000.

The six infrastructure industries -- crude oil, refining, coal, electricity, cement and steel -- together grew at an annual rate of 6.5% in June 2009, faster than the previous month's rise of 2.8%, data showed on Thursday, 23 July 2009. The data indicated improving economic activity. The infrastructure sector accounts for 26.7% of India's industrial output.

Inflation measured by the wholesale price index (WPI) declined 1.17% in the 12 months to 11 July 2009, as compared with previous week's annual decline of 1.21%, government data showed today, 23 July 2009.

Meanwhile, annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. The cumulative seasonal rainfall for the country as a whole during this year's monsoon has so far been 24% below the Long Period Average (LPA), the India Meteorological Department said on its website in a press release dated 17 July 2009. Out of 36 meteorological sub-divisions, rainfall was excess/normal in 13 and deficient/scanty in 23 meteorological sub-divisions

More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 354 companies rose 35.10% Rs 22352 crore on 9.2% growth in sales to Rs 159099 crore in Q1 June 2009 over Q1 June 2008.

European markets were trading subdued today, 23 July 2009. Key benchmark indices in UK, France and DAX were down by between 0.09% and 0.45%

Asian stocks climbed to a 10-month high today, 23 July 2009 led by energy shares. Key benchmark indices in Hong Kong, Singapore, South Korea and Japan were up by between 0.16% and 2.96%. However Taiwan's Taiwan Weighted index slipped 0.06%

China's Shanghai Composite rose 0.97% after the Chinese Foreign Minister Yang Jiechi today, 23 July 2009 expressed confidence that his country's economy could reach an 8% growth target this year buoyed by stimulus package.

Yang Jiechi added that giving developing nations more weight in global financial bodies would be a key element of the G20 summit in Pittsburgh in September 2009.

US markets ended mixed on Wednesday, 22 July 2009 as both the Dow Jones and the S&P 500 ended the session in the red after poor quarterly results by financial giants Morgan Stanley and Wells Fargo. However, the tech heavy Nasdaq Composite index successfully logged its eleventh straight advance on robust earnings from Apple Inc and Starbucks Corp.

The Dow slipped 34.68 points, or 0.39%, to 8,881.26 and the S&P 500 slipped 0.51 points, or 0.05%, to 954.07. However the Nasdaq Composite index rose 10.18 points, or 0.53%, to 1,926.38.

US President, Barack Obama said on Wednesday, 22 July 2009 said that the country has seen a stabilisation in the financial system.

Trading in the US index futures indicated the Dow could rise 25 points at the opening bell today, 23 July 2009.

The BSE 30-share Sensex jumped 387.92 points or 2.61% to 15,231.04, its highest closing since 12 June 2009. The Sensex opened 165.66 points higher at 15,008.78. At the day's high of 15,264.84, the Sensex advanced 421.72 points in mid-afternoon trade. The Sensex rose 154.63 points at the day's low of 14,997.75 in early trade.

The S&P CNX Nifty was up 124.85 points or 2.84% to 4,523.75, its highest closing since 12 June 2009. Nifty July 2009 futures were at 4539.95, at a premium of 16.20 points as compared to the spot closing.

The Sensex is up 5583.73 points or 57.87% in calendar year 2009 as on 22 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7070.64 points or 86.64% as on 23 July 2009.

Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. On BSE, 1797 shares advanced as compared with 856 that declined. 87 shares remained unchanged.

The BSE Mid-cap index gained 2.29% to 5,293.37 and BSE Small-cap index rose 2.16% to 5,942.85. However, both these indices underperformed the Sensex

All the sectoral indices on BSE logged gains. The BSE Realty index (up 5.08%), the BSE Consumer Durables index (up 4.47%), the BSE Auto index (up 3.87%), the BSE FMCG index (up 3.95%), the BSE Healthcare index (up 2.85%), the BSE Metal index (up 4.32%), outperformed the Sensex.

The BSE PSU index (up 1.37%), the BSE Oil & Gas index (up 2.39%), the BSE Bankex (up 1.73%), BSE Capital Goods index (up 2.08%), the BSE Power index (up 2.59%), the BSE IT index (up 1.99%), the BSE TECk index (up 1.55%), underperformed the Sensex.

Among the 30-member Sensex pack, 28 advanced while only 2 of them declined.

Realty stocks rose on the government's thrust on the housing sector in the Union Budget 2009-10 tabled in the Parliament on 6 July 2009. India's largest real estate developer by sales DLF jumped 7.60% to Rs 372.50 and was the top gainer from the Sensex pack.

Unitech (up 5.72%), Housing Development & Infrastructure (up 5.73%), Indiabulls Real Estate (up 3.49%), and Ackruti City (up 1.80%), advanced.

Infrastructure stocks rose on the government's thrust on the infrastructure sector in the Union Budget 2009-2010. Larsen & Toubro (up 2.95%), Reliance Infrastructure (up 7.21%), Lanco Infratech (up 3.54%), GMR Infrastructure (up 2.66%), and GVK Power Infrastructure (up 1.42%), rose

India's biggest power equipment maker by sales Bharat Heavy Electricals gained 0.66% after net profit rose 22.41% to Rs 470.59 crore on 27.64% rise in total income to Rs 5,898.51 crore in Q1 June 2009 over Q1 June 2008. Bhel outstanding order book stood at Rs 1,24,000 crore. The company announced the result during market hours on Wednesday, 22 July 2009.

Power stocks rose after strong response to India's second largest private sector power generation company by sales Tata Power Company's global depository receipt (GDR) on Wednesday. Tata Power Company rose 2.64% to Rs 1150. Among other power stocks, Reliance Power (up 5.66%), NTPC (up 1.97%), CESC (up 2.67%), gained.

Tata Power Company during trading hours on Wednesday 22 July 2009, said strong response for its GDR issue helped it raise $335 million as compared with an earlier announced plan to raise $250 million. The company will use the funds for its ongoing capital expenditure plans. Tata Power issued 14.8-million GDRs priced at $22.58 a piece, with each GDR representing one equity share, Tata Power said.

KEC International soared 9.56% after the company bagged four orders totaling Rs 471 crore. The company announced the fresh orders during the trading hours today, 23 July 2009.

Metal stocks gained after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 1.72% on Wednesday, 22 July 2009. Hindalco Industries (up 6.20%), Hindustan Zinc (up 5.67%), Nalco (up 2.66%), JSW Steel (up 4.63%), Tata Steel (up 4.10%), edged higher.

India's largest private sector copper marker by sales Sterlite Industries surged 5.27%. The company said on 18 July 2009 it has raised $1.5 billion though an American Depositary Shares (ADS) issue. Parent Vedanta Resources participated in the offering with an allocation of $500 million either directly or through a subsidiary. On allotment, Vedanta's shareholding in Sterlite will drop to 57.5% from 61.7%, assuming no exercise of over-allotment option

Maharashtra Seamless rose 1.87% after net profit rose 8.2% to Rs 65.22 crore on 20.1% rise in net sales to Rs 422.51 crore in Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Wednesday, 22 July 2009.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) advanced 3.19% to Rs 2040.40, a day ahead of its Q1 June 2009 results on Friday, 24 July 2009. The stock shrugged off reports that the petroleum ministry is considering issuing a notice to Reliance Industries (RIL) for allegedly violating the production sharing contract (PSC) governing supply and production of gas from the Krishna Godawari (KG) basin.

The government may even cancel the contract as it claims that the secret family agreement to divide the gas was signed without informing the government. The family agreement in question refers to a memorandum of understanding (MoU) drawn up in 2005, which forms the basis for the division of RIL and parts of which refer to gas supply by RIL to Reliance Natural Resources (RNRL).

Earlier, the Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.

RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.

In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row. The government, however, has said that the country's interest must be taken into consideration first and that cannot be held to ransom by a dispute between two industrialists or a previous, private pact between them.

India's largest oil exploration firm by revenue ONGC was down 0.44% ahead of its Q1 June 2009 results today, 23 July 2009. The stock gyrated in a band of Rs 1080 and Rs 1118 in the day.

Mangalore Refinery and Petrochemicals declined 2.66% after net profit slumped 50.31% to Rs 420.07 crore on 41.53% fall in total income to Rs 6,298.97 crore in Q1 June 2009 over Q1 June 2008. The company announced the results during trading hours today, 23 July 2009.

India's top small car maker by sales Maruti Suzuki India shot up 6.67% to Rs 1298.30 after the net profit rose 25.26% to Rs 583.54 crore on a 31.01% increase in total income to Rs 6709.53 crore in Q1 June 2009 over Q1 June 2008. The stock hit a record high of Rs 1305.50 in intra-day today, 23 July 2009. The result was announced during trading hours today, 23 July 2009.

Strong Maruti results boosted sentiment for other auto shares. Mahindra & Mahindra (up 4.82%), Tata Motors (up 4.62%), bajaj Auto (up 0.94%), and Ashok Leyland (up 1.85%), advanced.

India's largest cement manufacturer by sales ACC vaulted 5.84% after net profit soared 79% to Rs 485.61 crore on a 15.32% increase in total income to Rs 2138.24 crore in Q2 June 2009 over Q2 June 2008. The results were declared during trading hours today, 23 July 2009

India's top cigarette maker by sales ITC gained 5.88% after net profit rose 17.38% to Rs 878.80 crore on 5.14% rise in total income rose to Rs 4220.49 crore in Q1 June 2009 over Q1 June 2008. The results were unveiled during trading hours today, 23 July 2009

India's largest listed cellular services provider by sales Bharti Airtel reversed early gains and was down 1.20% to Rs 813 after the company average monthly revenue per user dropped to Rs 278 in Q1 June 2009 from Rs 305 in Q1 June 2008. Average monthly minutes of use by user -- another key metric used by analysts to gauge performance -- fell 2% to 478 minutes in Q1 June 2009 over Q4 March 2009. The decline in these parameters hurt investor sentiment. It was the top loser from the Sensex pack

Bharti's net profit net profit jumped 31.3% to Rs 2687.51 crore on a 13.88% rise in total income to Rs 9056.29 crore in Q1 June 2009 over Q1 June 2008. The results were declared before trading hours today, 23 July 2009.

India's second largest listed cellular services provider by sales Reliance Communications (RCom) gained 5.79% after it bagged a Rs 10,000-crore telecom infrastructure outsourcing deal from new entrant Etisalat DB Telecom (formerly Swan Telecom). The deal, which includes both towers and transmission, is spread over a 10-year period. The company made this announcement during market hours on Wednesday, 22 July 2009.

India's largest pharma company by market capitalisation Sun Pharma rose 1.62% to Rs 1275, rebounding sharply from day's low of Rs 1158. The early plunge was triggered on reports investors have initiated a lawsuit seeking class action status against its US subsidiary Caraco Pharmaceutical in the United States District Court.

On June 25, the US FDA had announced seizure of drug products from the company's three facilities in Michigan at Detroit, Farmington Hills and Wixom. Upto 33 different drugs were seized and the US FDA banned Caraco from manufacturing and selling these drugs in the US until there is assurance that the firm complies with manufacturing standards. The action followed Caraco's continued failure to meet the US FDA's current good manufacturing practices (cGMP) requirements.

Biocon spurted 3.13% after net profit jumped 283.55% to Rs 57.55 crore on 96% surge in net sales to Rs 71.40 crore in Q1 June 2009 over Q1 June 2008.

Banking shares eased from the day's high after inflation data. India's largest private sector bank by net profit ICICI Bank was up 1.33% to Rs 771, off the day's high of Rs 787.75. India's second largest private sector bank in terms of operating income HDFC Bank rose 0.33% to Rs 1451, off day's high of Rs 1470

India's biggest bank in terms of branch network State Bank of India (SBI) rose 1.73% to Rs 1722.90, off the day's high of Rs 1241. Finance secretary Ashok Chawla said on 22 July 2009 that the Centre will seek Cabinet approval to dilute government stake in the state-run bank.

Indian Bank rose 7.51% after net profit surged 52.40% to Rs 331.66 crore 27.82% rise in total income to Rs 2,230.39 crore in Q1 June 2009 over Q1 June 2008. The bank declared its results during the trading hours today, 23 July 2009.

Union Bank of India tumbled 4.60% after the Reserve Bank India said foreign institutional investors (FIIs) will have to get its approval to purchase equity shares as FII investment in the public sector bank has reached 18% against its permissible limit of 20%.

Union Bank of India's net profit rose 93.70% to Rs 442.19 crore on 34.45% rise in total income to Rs 3704 crore in Q1 June 2009 over Q1 June 2008. The state-run bank announced the results during trading hours today, 23 July 2009.

Chawla on 17 July 2009, said the government will introduce seven bills in parliament, including proposals for pension and banking reforms and efforts to raise the foreign investment limit in insurance companies.

India's largest dedicated housing finance company by sales, HDFC rose 2.23%. The finance firm reported 20.68% rise in net profit to Rs 564.92 crore on 22.86% rise total income to Rs 2,849.07 crore in Q1 June 2009 over Q1 June 2008. The lender announced its result during late trade on Wednesday, 22 July 2009.

IT stocks rose on fresh buying following upbeat Q1 June 2009 results from frontline IT companies in the past few days.

India's third largest IT exporter by sales Wipro advanced 0.99% after consolidated net profit as per Indian accounting rules rose 0.54% to Rs 1015.50 crore on 2.5% fall in sales to Rs 6289.10 crore in Q1 June 2009 over Q4 March 2009. The company announced the results before trading hours on Wednesday, 22 July 2009.

India's largest IT exporter by sales TCS gained 2.19% after net profit rose 15.27% to Rs 1276.44 crore on 0.12% fall in sales to Rs 5609.60 crore in Q1 June 2009 over Q4 March 2009. The company announced the result after trading hours on 17 July 2009.

India's largest IT firm by sales Infosys shot up 2.75%. The government has launched a Government-to-Business (G2B) services e-biz project with Infosys as the technology partner. The project is among the 27 Central, State and Integrated Mission Mode Projects (MMPs) under the National E-Governance Plan (NEGP).

Tech Mahindra rose 1.95% even as net profit dropped 43% to Rs 131.6 crore on 6% rise in total revenues to Rs 1,113 crore in Q1 June 2009 over Q4 March 2009. The company attributed fall in net profit to surge in interest costs on debt it took to buy Mahindra Satyam, the erstwhile Satyam Computer Services. The results were declared after market hours on Wednesday, 22 July 2009. Shares of Mahindra Satyam surged 15.09% to Rs 104.90

Mahindra Satyam was the top traded counter on BSE with turnover of Rs 556.941 crore followed by Reliance Industries (Rs 438.71 crore), ICICI Bank (Rs 281.22 crore), Aban Offshore (Rs 189.99 crore), and Infosys Technologies (Rs 189.80 crore).

Mahindra Satyam, too, led the volume charts on BSE clocking volume of 5.53 crore shares followed by IFCI (1.89 crore shares), Ispat Industries (1.80 crore shares), Suzlon Energy (1.53 crore shares) and Unitech (1.47 crore shares) were the other volume toppers in that order.

Century Enka was locked at 10% upper limit after net profit galloped 489.40% to Rs 28.35 crore in Q1 June 2009 over Q1 June 2008. The company announced the fresh orders during the trading hours today, 23 July 2009.

Zee News jumped 4.93% after net profit rose 24.85% to Rs 11.91 crore on a 21.35% increase in total income to Rs 132.98 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours today, 23 July 2009

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Closing Bell 23 July 2009

Closing Bell 23 July 2009

Buying activity during the final hour of trade further strengthened gains in the Indian indices as they ended the day well above the dotted line. The BSE-Sensex ended the day higher by around 380 points, while the NSE-Nifty closed higher by about 125 points. Stocks from the mid-cap and small-cap spaces ended the day on a strong note as well, recording gains of 2.3% and 2.2% respectively. While buying was witnessed across sectors, Bharti Airtel and ONGC emerged as the losers on both the indices. The advance to decline ratio was poised at 3.7 to 1 on the NSE.

Other Asian markets also ended the day on a firm note. The European indices are currently trading mixed. Rupee was trading at 48.44 against the US dollar at the time of writing.

India Cements, through its subsidiary, ICL Financial Services, recently acquired a 53% stake in a Rajasthan based Indo Zinc company at a valuation of Rs 53 m. Upon finding difficulties in going ahead with its proposed greenfield expansion of 1.5 million tonnes (MT) in the state of Rajasthan, India Cements proposes expand its capacity in Rajasthan through the acquisition route. Along with the 1.5 MT cement plant, the company had also announced a 20 MW captive power plant within the state. For this project, Indian Cements has outlined capex of Rs 6 bn, which would be funded by a mix of debt to equity in the ratio of 50:50. The plant is expected to commence operations by FY11. It will now be set up by Indo Zinc, which owns limestone mining leases. The move is a positive one from a long term perspective as it would lead to diversification of revenues across geographies (access to Rajasthan, Madhya Pradesh and Gujarat) and provide access to secured source of the key raw material namely limestone. As India Cements raised its capital holding in the company from 13% to 53%, as per SEBI law it has come out with an open offer to acquire another 20% shares (900,000 equity shares) of Indo Zinc Ltd at a price of Rs 22.5 per share. Cement sector stocks closed firm.

Automobile sector stocks ended in the positive with the major gainers being TVS Motors, Maruti Suzuki and M&M. Maruti Suzuki announced its 1QFY10 results today. The company reported a topline growth of 34% YoY during 1QFY10. This was led by a stellar performance on the exports front which saw a volume growth of 135% YoY. The domestic volumes grew by 10% YoY. During the quarter, Maruti saw a 17% YoY growth in the A2 segment and 25% YoY increase in the A3 segment primarily driven by new launches. On the operating margin front, the company saw a marginal improvement of 0.5% YoY. While raw material costs saw an increase, staff and other expenses decreased as a percent of sales. The net profits reported a growth of 25% YoY during 1QFY10. A 39% YoY growth in operating profits coupled with lower interest costs (down 63% YoY) led to the higher profits.

Inflation numbers for the week ended 11th of July rose marginally to -1.17% during the period as compared to -1.21% a week earlier. It may be noted that this is the sixth consecutive week when the inflation rate is in the negative. For the corresponding week a year earlier inflation stood at 12.13%. The marginal rise in inflation was attributed to growth in the price of primary food articles mainly marine fish, fruits and vegetables. The rise in the price of aviation turbine fuel also contributed to the increase.

The Indian markets continued to push farther into the positive territory during the previous two hours of trade on account of sustained buying activity. Currently, stocks from metals, power and auto sectors are trading higher, while select stocks from telecom, pharma and engineering sectors are trading lower. The overall advance to decline ratio is poised at on 1.8 to 1 the BSE.

The BSE-Sensex and NSE-Nifty are trading firm, up by around 200 points and 70 points respectively. The BSE-Midcap and the BSE-Smallcap indices are also trading higher, up by around 1.7% and 1.6% respectively. The Rupee is trading at 48.46 to the Dollar.

Software stocks are trading mixed. While TCS and Tech Mahindra are trading higher, Mindtree and Financial Technologies are trading lower. Tech Mahindra announced its 1QFY10 results yesterday. The topline of the company grew by 6% QoQ in 1QFY10 led by improved volumes across business segments. Operating margins declined by 1.8% QoQ to 25.2% in 1QFY10, despite cost containment measures and appreciation of the Rupee. This was mainly on account of high base effect as margins improved significantly in the last quarter due to a policy change pertaining to employee cost. Net profits declined by 43% QoQ mainly due to significant rise in interest cost on account of interest outlay on debt raised for funding the acquisition of Satyam during the quarter. Tech Mahindra added 510 employees during the 1QFY10.

Telecom stocks are trading mixed. While Reliance Communications and Idea Cellular are trading higher, Bharti Airtel is trading lower. As per a leading business daily, Reliance Infratel, a subsidiary company of Reliance Communications (RCom) has received Rs 100 bn tower sharing contract from Etisalat Dynamix Balwas. Reliance Infratel will provide the entire tower and related infrastructure along with transmission connectivity to Etisalat for its 15 circles. It may be noted that revenues from tower sharing are considered lucrative as incremental capex on the part of the provider is minimal. Etisalat plans to roll out GSM services in 15 circles in India in next 2 years and will use around 30,000 towers of Reliance Infratel. It is estimated that this contract will generate Reliance Infratel revenues of over Rs 10 bn per year in the form of rentals, which will add to the stability of RCom's revenues.

The Indian markets pared some of their early gains during the previous two hours of trade as selling activity was witnessed at the higher levels. Currently, stocks from the metal, FMCG and IT sector are leading the pack of gainers, while select stocks from the pharma and telecom sectors are trading weak. The overall market breadth is positive, with total gainers outnumbering the losers in ratio of 1.8 to 1 on the BSE.

The BSE-Sensex and NSE-Nifty are trading firm, up by around 170 points and 60 points respectively. The BSE-Midcap and the BSE-Smallcap indices are also trading higher, up by around 1.2% and 1.1% respectively. The Rupee is trading at 48.45 to the Dollar.

Telecom major, Bharti Airtel, announced its 1QFY10 results this morning. The company reported a topline growth of around 23% YoY during the period. This growth was led by mobile service business, which grew by 19% YoY in 1QFY10. In the mobile service business, the growth was led by a strong addition to the subscriber base, while the average revenues per user (ARPU) remained under pressure. The company added 8.4 m subscribers during the quarter. At the end of the quarter, the company's subscriber base stood at 102 m. ARPU declined by 20% YoY, mainly on account of aggressive competitive pricing by new telecom players along with the existing ones. The operating margins remained stable at 40.6% during this period. Stable margins along with the higher interest income helped bottomline grow by 22% YoY. The stock is trading weak, while its peer, RCOM is in the green.

Automobile stocks are trading firm led by Tata Motors and M&M. As per a leading business daily, utility vehicle major, M&M plans to increase its rural presence in order to garner higher revenues from that market category. The company plans a rural push for its latest launch of a pickup truck - the Mahindra Bolero Maxi Truck. The company is a market leader in the pickup range with a market share of 85%, of which 80% comes from the rural markets. It may be noted that rural markets have shown resilience during the economic slowdown. The company plans to increase its reach to 600 dealers from the current 450 and it also plans to use the vast network of Mahindra Group companies in order to provide service at a range of every 50 km. During the current fiscal, the company expects the segment to grow by 15% YoY as compared to industry growth of 12% YoY.

In line with its Asian peers, the Indian markets have opened the day's proceedings on a positive note. Buying is being witnessed across sectors with metal, power and telecom stocks leading the pack of gainers. The overall advance to decline ratio stood at 6:1 on the NSE. As regards global markets, the US and the European markets ended mixed yesterday. The Asian markets are trading firm currently.

The BSE Sensex is trading higher by around 285 points. The NSE Nifty is up 80 points. The BSE Midcap and the BSE Smallcap indices are trading higher by more than 1% each. The rupee is trading at 48.42 to the dollar.

Piramal Healthcare announced its 1QFY10 results yesterday. The revenues grew by 16% YoY in 1QFY10 driven by the domestic branded formulations, pathlabs and global critical care businesses. While the domestic formulations business grew by a healthy 26% YoY, revenues from custom manufacturing fell by 16% YoY. The operating margins reduced by 1.1% to 19% due to increase in raw material costs and other expenditure (as percentage of sales). While net profits registered a growth of 25% YoY, the same was largely due to the extraordinary expenses and forex loss reported last quarter. Thus, excluding this impact, net profits declined by 15% YoY. While the performance of the custom manufacturing business has been subdued in the last three quarters, the management expects revenues to pick up in the latter half of the year. Pharma stocks are trading mixed currently.

As per a leading business daily, Tata Power has raised US$ 335 m through issue of securities in international markets. The Global Depository Receipts (GDRs) were priced at US$ 22.6 each. The company plans to use the proceeds to fund capital expenditure of its existing power plants, projects under implementation and other future projects. The company had already tied up Rs 181 bn as debt and other loans from various financial institutions. In all, Tata Power has outlined a capex of Rs 500 bn to set up additional generation capacities of around 10,500 MW over the next 5-6 years. This shall take the company's capacity to 12,861 MW by 2013, from the current levels of 2,368 MW. It is also planning to strengthen its power transmission and distribution systems in Maharashtra with an investment of over Rs 10 bn in a few years. With India facing a demand supply gap in the power sector, the expansion plans would aid the company in meeting the growing needs. The government is planning to add 68,000 MW of generation capacity over the next 5 years. However, challenges with respect to shortage of coal, implementation and execution remain. Power stocks are trading firm.

Although Indian equities had reached very attractive valuations earlier this year, no one really expected the recovery to be this strong and this quick. However, there are some who prepared for this rally and have reaped rich dividends. One of them is Sanjiv Duggal, who manages about US$ 6 bn in Indian stocks at HSBC Holdings Plc's Halbis Capital Management in London.

As per Bloomberg, Duggal's US$ 4.6 bn Indian Equity Fund, which targets overseas investors, rose a whopping 78% this year, the best-performing Indian equity fund with assets of more than US$ 500 m.

He continues to believe that the Indian economy's inherent growth potential remains intact. He expects FY10 results for India Inc. to grow by less than 10% but FY11 to witness a growth of 15% to 20%. These earnings are now made more attractive due to stability the new government will provide. As a result, as he says, "One could argue that India's trading multiple could be higher." In fact, valuations are in line with 10 year averages and lower than 5 year ones.

Also, as Mr. Ajit Dayal, Director at Quantum Advisors Pvt. Ltd. also adds - "India is neither a US (a big borrower and consumer) nor is it a China (a big producer of goods for export that created jobs and boosted China`s economic growth). So, while I remain nervous about where the world is, I continue to believe that India has a good chance of being less impacted than most other countries in the world. And while the market has reacted very negatively to the budget (silly, in my opinion) and is nervous about the monsoon (we should be), the trend of India`s GDP remains upward."

But despite all these positive vibes that emanate for India, it is pertinent that you do not lose sight of the fact that the world is still a very uncertain place to invest in. And given that, as Ajit says, "India is still hostage to flows of short term money from hedge funds," it is important that you do not give in to the greed that might lead the markets to high levels in the short term.

In such a scenario, what should you do? Invest in companies with strong business models and visionary managements, but only after you have kept aside enough cash for emergencies and to live comfortably.

Is Indian IT looking at better times?

India's four major IT companies - TCS, Infosys, Wipro, and Tech Mahindra - have already announced their June quarter results. And to say the least, the performance has been good, especially given the continued weakness in worldwide technology spending. These companies' combined sales and profits have grown by 9% YoY and 12% YoY respectively during the quarter.