Closing Bell 28 July 2009

Closing Bell 28 July 2009

Today’s trading session was marked by considerable volatility. While the Indian markets began the day’s proceedings on a positive note, in the subsequent trading sessions alternate bouts of buying and selling led the indices to oscillate on either side of yesterday’s close. Profit booking in the final hour of trade led the indices to wipe out their gains and end the day into the negative territory. The BSE-Sensex closed lower by around 50 points, while the NSE-Nifty ended the day with marginal losses. However, midcap and smallcap stocks closed on a firm note. The BSE-Midcap and BSE-Smallcap indices ended higher by about 1% and 1.7% respectively. While stocks from the realty and auto sectors emerged as the top gainers, stocks from the banking and FMCG space led the pack of losers. At the time of writing, the overall advance to decline ratio stood at 1.9 to 1 on the NSE.

Most of the other Asian markets ended the day on a positive note today. The European indices are witnessing a mixed trend currently. Rupee was trading at 48.18 against the US dollar at the time of writing.

Grasim Industries announced its 1QFY10 results few hours back. On a standalone basis, the topline grew by 17.6% YoY led by growth in two of its core business segments viz. cement and VSF. During the quarter, the cement segment reported 31.8% YoY growth in revenues, while the VSF business reported 11.1% YoY growth in the topline. The EBITDA margins witnessed marginal expansion of 0.1% as costs grew a tad lower than the topline. While profit before tax grew by 9.1% YoY, the bottomline reported a whopping 68.5% YoY growth. The robust growth in net profits came in on account of extraordinary income that includes profit on sale of the sponge iron business. The stock of Grasim Industries closed lower.

As per a leading business daily, HT Media plans to invest around Rs 800 m during the current fiscal. Of this, Rs 400 m will be spent towards the company’s general capital expenditure plans, while the other half will be invested in its Burda joint venture. It may be noted that the company has recently expanded the reach of its English daily, ‘Mint’ in Chennai. It plans to further expand the daily’s reach in other states as well. Further, it also plans to invest in its radio and the internet businesses, which have yet to break-even. The company had witnessed sales growth of 2% YoY in its recent 1QFY10 results. The stock of HT Media ended in the red during the day’s trading session, while Deccan Chronicle ended firm.

The Reserve Bank of India in its 2009-10 monetary policy review today has indicated a wait and watch stance given that the Indian economy has still not shown clear signs of stability. It plans to maintain a soft interest rate regime until there are definite and robust signs of recovery and hence has left all key rates - repo, reverse repo, CRR - unchanged. The central bank has pegged India's GDP for FY10 at 6.5%, higher than the 5.7% expected in its earlier survey in March. It has also revised inflation target for the end of March 2010 to about 5%, higher than the 4% projection it made during its annual policy in April. This is keeping in view the global trend in commodity prices and domestic supply constraints, especially on the foodgrains front.

The Indian markets moved into the positive territory and recouped their earlier losses during the previous two hours of trade on account of sustained buying activity. Currently, stocks from the auto, construction and power sectors are trading higher, while select stocks from the energy, steel and banking are trading lower. The overall advance to decline ratio is poised at 2 to 1 on the BSE.

The BSE-Sensex and NSE-Nifty are trading firm, up by around 80 points and 15 points respectively. The BSE-Midcap and the BSE-Smallcap indices are trading higher, up by around 1.4% and 2.1% respectively. The Rupee is trading at 48.17 to the Dollar.

Steel stocks are trading mixed. While Tata Steel and SAIL are trading higher, JSW Steel is trading lower. As per a leading business daily, India’s largest steel producer SAIL plans to raise long term debt of up to Rs 65 bn in FY10 in order to fund its capex plans. In fact, it has already raised around Rs 30 bn at an average interest rate of below 9%. It may be noted that SAIL is enhancing its production capacity from the current 14 m tonnes to 26 m tonnes annually by 2014 at an estimated investment of Rs 780 bn. It plans to spend a capex of around Rs 103 bn in FY10 for the same. The remaining amount of the capex during the fiscal is most likely to be funded through internal accruals. SAIL’s debt to equity ratio stood at 0.3 in FY09.

Auto stocks are trading mixed. Tata Motors and Ashok Leyland are trading higher, while Maruti is trading lower. Ashok Leyland announced its 1QFY10 results last evening. The company’s topline declined by 52% YoY in 1QFY10 led by a significant fall in volumes during the quarter. The volumes declined by 58%YoY during the quarter. Operating profits declined by 90% YoY mainly on account of higher staff and other expenses (as % of sales) during the quarter. Operating margins declined by 5.2% to 1.3% in 1QFY10. The company’s net profits declined by 84.6% YoY, lower as compared to operating profits mainly due to an eight fold jump in other income during the period.

The Indian markets moved further into the negative territory during the previous two hours of trade on account of continuous selling activity among the index heavyweights. However, the overall market breadth is positive, with total gainers outnumbering the losers in the ratio of 1.6 to 1 on the BSE. Selling activity is led by stocks from the banking and software sectors, while select realty and auto stocks are trading firm.

The BSE-Sensex and NSE-Nifty are trading weak, down by around 90 points and 30 points respectively. However, the BSE-Midcap and the BSE-Smallcap indices are trading higher, up by around 0.5% and 1.2% respectively. The Rupee is trading at 48.19 to the Dollar.

Automobile stocks are trading mixed. While Tata Motors is trading firm, Ashok Leyland and Maruti Suzuki are in the red. Tata Motors announced its standalone 1QFY10 results yesterday. The company's topline declined by 8% YoY during the quarter, on the back of lower volumes and realisations. Volumes were down by 4% YoY during the period. The total domestic volumes were lower by a mere 1.4% YoY, while the export sales were hit by a 43% YoY decline. The company's domestic market share in the commercial vehicle segment has increased to 67.4% (from 61% in 1QFY09) during the quarter as sales improved by 1.1% YoY. Operating margins improved sharply by 3.2% YoY to 11.2% on account of lower raw material costs as a percentage of sales. Despite higher operating margins, net profit growth was lower at 7% YoY (excluding the extraordinary items for both periods) on account of higher interest (up 126% YoY) and tax expenses (up 81% YoY).

As per a leading business daily, the hotel industry, which was struggling of late on account of lower occupancies, plans to increase room rates in the range of 5% to 10% before the start of peak season-beginning in September. The companies expect demand in corporate travel to increase on the back of encouraging financial performance of most companies. For instance, ITC Hotels and Hotel Leelaventure expect room volumes in the corporate travel sector to show signs of improvement. It may be noted that the economic slowdown has impacted the industry, pressuring them to lower rates in the range of 30% to 40% in the first half of this calendar year. The pickup in demand is a positive sign for the hospitality industry as it will increase their occupancy levels. Hotel stocks are trading weak led by Taj GVK and EIH.

The Indian markets have opened the day's trade on a cautious note. Buying is being witnessed across metal, energy, engineering and select auto stocks. However, banking, FMCG and pharma stocks are trading in the red. The overall advance to decline ratio is poised at 2.2:1 on the NSE. As regards the global markets, the US and the European markets ended in the positive yesterday. The Asian markets are trading firm currently.

The BSE Sensex is trading lower by around 20 points. The NSE Nifty is down 15 points. The BSE Midcap and the BSE Smallcap indices are trading flat. The rupee is trading at 48.23 to the dollar.

FMCG major Dabur announced its 1QFY10 results yesterday. The consolidated net sales grew by 22% YoY during 1QFY10 on the back of strong performance in the consumer product division, where sales grew by 25% YoY. The overseas business division recorded an impressive growth of 52.9%, led by a robust performance in GCC, Egypt, North Africa and South Asia. The Consumer Healthcare division saw a 12.5% YoY growth, while the foods segment witnessed a 22% YoY increase. The operating (EBITDA) margins improved to 16% due to the impact of lower raw material prices (as a percentage of sales). However, the consolidated ad spends as a percent of sales increased by 180 basis points to 15.3%. Net profits grew by 29% YoY while net profit margins expanded by 0.8%. Growth was aided largely by higher sales and improved operating margins. The company has completed the Fem Care acquisition during the quarter. According to the management, despite the overall gloomy scenario in the economy, the consumer spending on FMCG continues to remain strong. Further, the entire growth reported by Dabur is volume driven. The company expects the growth to continue, both from rural and urban areas. FMCG stocks are trading mixed.

GAIL is planning to invest Rs 80 bn to expand its pipeline network. Of this, Rs 76 bn would be invested in constructing a 2,050-km pipeline from Jagdishpur to Haldia. The project will be executed in two phases, with Part-IA of Phase-I of the project scheduled to be completed by December 2011, while Part-IB will be completed by March 2011. The second phase of the project is expected to be completed by December 2013. The company aims to raise Rs 20 bn from the domestic market this fiscal. The company would raise another Rs 150 bn in the next couple of years through external commercial borrowings. The company had a debt-equity ratio of 0.12:1 and it could leverage its balance sheet further. GAIL owns and operates a network of over 7,100 km of natural gas high-pressure trunk pipelines with a capacity to carry 155 metric million standard cubic metres a day (mmscmd) of natural gas across the country. During the 11th Plan period, GAIL plans to build 5,000 km of pipelines at an estimated investment of Rs 280 bn. Following this expansion, GAIL would have a capacity to carry 300 mmscmd of gas. This will help the company to meet the gas demand which is slated to increase by 12% on a compounded basis to reach 283 mmscmd by FY12 from the current demand of about 179 mmscmd. Energy stocks are trading firm.

Today, the RBI will be releasing its first quarter review of the 2009-10 monetary policy and it will be interesting to know what the central bank will focus on and whether interest rates will remain unchanged. With FY09 being one of the worst years for the global economy and also having impacted the Indian economy significantly, the RBI had to resort to various stimulus packages to ward off any slack in demand and consumption and ease up liquidity. One such move was the reduction in the repo rate by 425 basis points to 4.75% in 6 moves since October 2008. This time around it appears more likely that the RBI will keep its rate unchanged. What it means is that the possibility of rates being lowered could be low as the economic situation has not worsened further than what it had in the previous year. At the same time, the RBI may not want to increase the rates either unless a more consistent picture of a recovery emerges.

But inflation will continue to remain on the RBI's radar and as reported in leading business dailies, Goldman Sachs expects the RBI to raise its inflation target for the end of March 2010 from 4%. This is hardly surprising given that with money beginning to slosh around in the financial system, inflation was bound to gradually rear its head. Readers would do well to recall that inflation which had touched a high of 12% in August 2008 cooled off considerably since then to dip into the negative as the economy slowed down. But this has been at the wholesale level. At the consumer level, high prices continue to pinch hard . The errant monsoons have not helped either and the RBI will be kept on its toes when it comes to making a decision. Over to you, Mr. Subbarao!

Problems being faced by the shipping industry

While the economic slowdown in India has had an impact on almost all industries, the shipping industry in particular has been in even more trouble. As reported in a leading business daily, the main problem being faced by this industry is shortage of funds to purchase new vessels despite both new and second-hand ships being available in the global shipping market. Problems have been further compounded by the fact that nearly half the shipping fleet needs to be replaced in the next three years, as it would have exceeded the international age norms. The sorry state of finances in the global markets means that getting access to cheap funds is no longer easy as it was before the crisis erupted.

Also, the softening freight rates have further undermined the revenue potential for this industry. At the end of the day, shipping is a global industry and its prospects are closely tied to the level of economic activity in the world. This means that the fortunes of this industry will start to appear brighter once signs of a sustainable recovery surface in the global economy. Till such time then Indian shipping companies will have to find various ways of riding out the storm. It certainly won't be easy.

BSE NSE Share Market Voices 28 July 2009

BSE NSE Share Market Voices 28 July 2009

After a positive start, the market slipped into the red this mornin RBI's decision to leave key rates unchanged did not make any impact on the market's direction today.

The Sensex, which fell to 15,240.53 rallied to 15,463.46 past mid afternoon but failed to sustain gains and ended in the red. The barometer ended at 15,334.95 (provisional) with a loss of 40.09 points or 0.26%. The Nifty closed at 4559.20, recording a loss of 13.10 points or 0.29%. It touched a high of 4599.90 and a low of 4529.15 today.

Realty stocks had a good outing once again on hopes of increased demand for homes. The finance minister's statement that the government would provide a 1% interest subsidy on home loans up to Rs 10 lakh for one year buoyed up sentiment towards the sector.

Automobile major Tata Motors ended with a hefty gain of 10%. Select metal, power and PSU stocks rallied sharply. FMCG major HUL fell on weak results. Bank, oil and IT stocks were seen struggling for a major part of the session today. Midcap and smallcap stocks had a good session.

PTC India touched an intraday high of Rs 90.90 and an intraday low of Rs 86.20. At 3:20 pm, the share was quoting at Rs 90.60, up Rs 4.15, or 4.80%. It was trading with volumes of 1,655,476 shares, compared to its five-day average of 707,721 shares, an increase of 133.92%. Yesterday the share closed up 2.25% or Rs 1.90 at Rs 86.45.

Bajaj Hindusthan is up by around 5.5% at Rs 192 on strong quarterly results. The company posted a net profit of Rs 60.08 crore for the quarter ended June 2009 as against a net loss of Rs 35.41 crore in the quarter ended June 2008. Investors holding the stock can stay invested and buy more of it at sharp declines.

Bajaj Hindusthan touched an intraday high of Rs 191.50 and an intraday low of Rs 175. At 3:06 pm, the share was quoting at Rs 191.05, up Rs 8.80, or 4.83%. It was trading with volumes of 3,934,930 shares, compared to its five-day average of 1,218,619 shares, an increase of 222.90%. Yesterday the share closed up 1.65% or Rs 2.95 at Rs 182.25.

Glenmark Pharmaceuticals is a good pick from the healthcare space.

The stock, currently traded at Rs 257, can rise to Rs 290 - 300 and a strong breakout there can lift the stock to around Rs 325 or even higher. One can hold the stock with a stop loss near Rs 215.

Grasim Industries has reported strong numbers for the April - June 2009 quarter. The stock, currently trading at Rs 2905, looks poised to test higher levels in the near to medium term. One holding the stock can stay invested. More quantities can be picked up in a staggered way.

FMCG major Hindustan Unilever Limited has posted a net profit of Rs 5431.90 million for the quarter ended June 30, 2009 as compared to Rs 5581.80 million for the quarter ended June 30, 2008. The total income of the company increased from Rs 43175.10 million for the quarter ended June 30, 2008 to Rs 45361.70 million for the quarter ended June 30, 2009. The stock has lost nearly 4% at Rs 287 following the announcement of results.

Reliance Infrastructure was among major gainers on the Sensex at 2:09 pm. It touched an intraday high of Rs 1,223.65 and an intraday low of Rs 1,157. The share was quoting at Rs 1,214, up Rs 49.55, or 4.26%.

It was trading with volumes of 808,621 shares. Yesterday the share closed down 0.56% or Rs 6.55 at Rs 1,164.45.

Indiabulls Financial Services touched an intraday high of Rs 215.50 and an intraday low of Rs 199. At 1:56 pm, the share was quoting at Rs 214.75, up Rs 13.05, or 6.47%. It was trading with volumes of 515,220 shares. Yesterday the share closed up 6.69% or Rs 12.65 at Rs 201.70.

KEC International has posted a net profit of Rs 38.40 crores, a rise of over 50% on a net profit of Rs 25.52 crores the company had recorded in the corresponding quarter last year. The company's order book stands at Rs 5155 crore. Around 58% of it is from the South Asia market and the balance 42% is from the international market.

Buy Maruti Suzuki with a target of Rs 1,550-1,600, says Ashwani Gujral, Technical Analyst on CNBC-TV18 2:10 PM: NHPC IPO price band set at Rs 30-36/sh. The IPO issue to open on August 7 and closes on August 11.

Tata Steel (Rs 463) can be bought for short to medium term. The stock can rise to Rs 530 if it manages a strong breakout at Rs 490 levels.

A stop loss can be placed near Rs 410.

CESC touched an intraday high of Rs 334.80 and an intraday low of Rs 310.90. At 12:54 pm, the share was quoting at Rs 333.45, up Rs 25.00, or 8.11%. It was trading with volumes of 264,725 shares. Yesterday the share closed up 5.67% or Rs 16.55 at Rs 308.45.

Investors looking at medium term can go in for IVRCL Infrastructure, IRB Infrastructure, Punj Lloyd and KEC International. These stocks can be accumulated in small quantities in a staggered way.

Bombay Dyeing and Manufacturing Company touched an intraday high of Rs 365.40 and an intraday low of Rs 303.90. At 12:56 pm, the share was quoting at Rs 358.20, up Rs 22.25, or 6.62%. It was trading with volumes of 354,951 shares. Yesterday the share closed up 9% or Rs 27.75 at Rs 335.95.

Kalyani Steels touched an intraday high of Rs 101.50 and an intraday low of Rs 97. At 12:58 pm, the share was quoting at Rs 97.05, down Rs 4.35, or 4.29%. It was trading with volumes of 9,679 shares. Yesterday the share closed up 0.05% or Rs 0.05 at Rs 101.40.

Cement stocks are likely to see some upside in the near term. One can keep picking up Ambuja Cements, Ultratech, ACC, Birla Corporation and Shree Cements at declines.

Automobile stocks Tata Motors, Mahindra & Mahindra and Maruti Suzuki can be picked up in small quantities at declines. Though some profit taking is likely in these stocks after recent sharp rallies, their medium to long term prospects continue to remain quite bright.

RIL is an underperformer, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Gammon India touched an intraday high of Rs 146.45 and an intraday low of Rs 121.25. At 12:18 pm, the share was quoting at Rs 122.25, down Rs 20, or 14.06%. It was trading with volumes of 149,320 shares. Yesterday the share closed down 2% or Rs 2.90 at Rs 142.25.

FMCG companies will do well, says Anand Tandon, Director Equities, Brics Securities, on CNBC-TV18

Tata Motors looks expensive, says Anand Tandon, Director Equities, Brics Securities, on CNBC-TV18

Do not invest in real estate stocks, says Sudarshan Sukhani on CNBC-TV18

Phoenix Mills has recommended a final dividend of 50% (Re 1 per share for every one fully paid share of Rs 2- each) for the financial year 2008-2009

Kotak Bank has posted a net profit of Rs 903.111 million for the quarter ended June 30, 2009 as compared to Rs 545.316 million for the quarter ended June 30, 2008. The stock, which was trading higher earlier in the day, declined on announcement of results and is down by 1.5% at Rs 659 now. One can consider fresh buying at sharp dips.

Global markets have run up sharply over the past few weeks on hopes of an economic revival.

A few encouraging reports on the economic front and some better than expected quarterly numbers from big companies are driving the market up these days. FIIs have been picking up stocks almost consistently. Still, one cannot rule out a few rounds of profit taking in the very short run. It is better to stay cautious and remain stock specific in the near term.

Buy JSW Steel on dips, says Sudarshan Sukhani, Technical Analyst, on CNBC-TV18

Banking space can outperform, says Sudarshan Sukhani on CNBC-TV18

Buy sugar stocks on dips, says Sudarshan Sukhani on CNBC-TV18

The Reserve Bank of India has left CRR, Repo and Reverse Repo rates unchanged at 5%, 4.7% and 3.25% respectively.

The Apex bank has revised GDP growth at 6% with an upward bias and targets inflation at 5% for fiscal 2010.

Bank stocks, which had declined sharply earlier this morning, have edged up from their lows following RBI's monetary policy statement.

Bharti Airtel (cmp Rs 426) can be retained with a long term plan. One can have a stop loss near Rs 400 for now. The stock can give a return of 30 - 40% over a medium term.

Escorts touched an intraday high of Rs 71.90 and an intraday low of Rs 69. At 10:26 am, the share was quoting at Rs 70.90, up Rs 3.40, or 5.04%.

It was trading with volumes of 581,480 shares. Yesterday the share closed up 3.37% or Rs 2.20 at Rs 67.50.

SBI (Rs 1687) can be picked up at dips for long term. Intra-day traders with a good appetite for risk can consider going long in SBI at current levels. The stock can rise to Rs 1725 - 1730 or even higher later on in the day.

Punj Lloyd: Sell below 246 with a stop loss of 248

HDFC: Sell below 2365 with a stop loss of 2380

NTPC's net profit rose over 27% to Rs 2193.62 crore in the quarter ended June 2009 as against Rs 1726.53 crore during the previous quarter ended June 2008. The company has reported a near 26% jump in sales during the quarter. The stock, currently trading at Rs 215, can be retained for long term. sharp declines can be used to increase exposure to the counter.

NTPC: Buy above 214.50 for the target of 218 / 220 / higher with a stop loss of 212.50

GMR Infra: Buy above 148.80 for the target of 150.50 / 152 / higher with a stop loss of 147.50

Rashtriya Chemicals & Fertilizers Limited has posted a net profit of Rs 315.50 million for the quarter ended June 30, 2009 as compared to Rs 190.60 million for the quarter ended June 30, 2008. Total income has decreased from Rs 15735.80 million for the quarter ended June 30, 2008 to Rs 8545.60 million for the quarter ended June 30, 2009. The stock is up by 4.2% at Rs 68.35. Investors long at the counter can stay invested and look at buying more at declines. Fairly strong returns are likely over a medium term.

Trading got off to a cautious start on the major Indian bourses this morning amid somewhat mixed global cues.

The Sensex opened more than 50 points up at 15,428.50 and edged up to 14,455 before drifting down to 15,416 netting a gain of 40.55 points or 0.26%.

The Nifty is up by 12.80 points or 0.28% at 4585.10.

Tata Motors has rallied 4.7% on strong results.

DLF, Unitech, Tata Comm, Tata Power, RPower, BPCL, NTPC, HDFC and ABB have also posted notable gains. stocks to watch: Petronet LNG, after Papua New Guinea Trade Minister Samuel Abal said the Indian firm was in talks to buy liquefied natural gas (LNG) from InterOil's project in the island nation.

Glenmark Pharmaceuticals Ltd after its board approved raising up to '250 million.

Ashok Leyland, after the truck and bus maker posted an 85 per cent decline in net profit in April-June.

Quarterly Results: Hindustan Unilever Ltd, Kotak Mahindra Bank Ltd, Tata Tea Ltd, Grasim Industries Ltd.8

Brokerage Recommendations 28 July 2009

Brokerage Recommendations 28 July 2009

Buy Sesa Goa with a target of Rs 255 and stop loss of Rs 234, says an expert of Trade Swift Broking, on CNBC Awaaz. The stock is currently trading at Rs 245, up 7.6% on the BSE.

Sell PFC with a target of Rs 235 and stop loss of Rs 220, says an expert of Bonanza Portfolio, on Zee Business. The stock is currently trading at Rs 225, up 3.4% on the BSE.

Sell Nifty with target of 4400 and stop loss of 4620, says Ashwani Gujral, technical analyst, on CNBC Awaaz, as closing market strategy.

Buy Nagarjuna Constructions with a target of Rs 180 and stop loss of Rs 140, says Nitin Murarka, technical analyst, on Zee Business, as closing market strategy.

Sell Lanco Infratech with a target of Rs 410 and stop loss of Rs 440, says Trade Swift Broking, on CNBC Awaaz, as closing market strategy.

Buy Sesa Goa with a target of Rs 280 and stop loss of Rs 230, says Ashwani Gujral, technical analyst, on CNBC Awaaz, as closing market strategy.

Hold Suzlon with a target of Rs 116, says Salil Kapoor, technical analyst, on Zee Business. The stock is currently trading at Rs 107, up 0.56% on the BSE.

Buy Punj Lloyd with a target of Rs 270, says Rajat Bose, technical analyst, on CNBC TV18. The stock is currently trading at Rs 240, down 1.38% on the BSE.

RIL has dishonoured the gas supply contract and shown dishonourable conduct, says Anil Ambani chairman, ADAG Group, at the RNRL AGM, reports NDTV Profit. The oil ministry's performance is biased towards RIL, he says. RIL's stand hurting both NTPC and RNRL, he adds. RNRL is currently trading at Rs 83, up 2.5% on the BSE.

Buy Suzlon with a target of Rs 120-125 with a stop loss of Rs 99, says Rahul Mohindar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 108, up 2.21% on the BSE.

Hold Praj Industries with a target of Rs 103 and stop loss of Rs 71, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 92, up 4.8% on the BSE.

Hold IRB Infrastructure with a target of Rs 197-222 and stop loss of Rs 176, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 193, down 0.39% on the BSE.

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 220, up 5.36% on the BSE.

Hold MTNL with a target of Rs 109-121 and stop loss of Rs 95, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 106, up 0.33% on the BSE.

Buy Tata Steel with a target of Rs 469-472 and then it can go to Rs 500 with a stop loss of Rs 445, says Rahul Mohindar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 463, up 1.24% on the BSE.

Credit Suisse maintains outperform on Glenmark Pharma, raises target price by 11.5% to Rs 290, reports NDTV Profit. The stock is currently trading at Rs 258, down 2.27% on the BSE.

The market has recovered and in now trading firmly. Sensex is trading at 15456, up 81 points and Nifty is at 4597, up 25 points from the previous close. CNX Midcap index is up 1.30% and BSE Smallcap index is up 2.19%. The market breadth is positive with advances at 912 against declines of 313 on the BSE.

Hold RIL with a target of Rs 2020 and then it can go to Rs 2120-2140, says Mitesh Thakkar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 1910, down 1.45% on the BSE.

Hold Fortis Healthcare with a target of Rs 111-120 and stop loss of Rs 84, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 102, down 0.68% on the BSE.

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 461, up 0.92% on the BSE.

Hold Purvankara Projects with a target of Rs 106-123 and stop loss of Rs 80, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 101, up 2.2% on the BSE.

Buy Great Offshore with a target of Rs 455 and stop loss of Rs 420, says Neera Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 441, up 1.37% on the BSE.

Hold Voltas with target of Rs 160-165, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 125, he adds. The stock is currently trading at Rs 140.65, down 0.04% on the BSE.

Hold Unitech with target of Rs 100, says Simi Bhaumik, technical analyst, on Zee Business. Keep trailing stop loss below Rs 85, she adds. The stock is currently trading at Rs 93, up 5.7% on the BSE.

Buy JSW Steel on dips, says Sudarshan Sukhani, technical analyst, on CNBC TV18. It is a stock you can add to your portfolio because it is excellent on the charts, he adds. The stock is currently trading at Rs 688, up 0.6% on the BSE.

Buy Nagarjuna Constructions at current levels with target of Rs 160, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 128, he adds. The stock is currently trading at Rs 143.30, up 1.9% on the BSE.

Hold Gujarat NRE Coke with target of Rs 72, says Simi Bhaumik, technical analyst, on Zee Business. Keep trailing stop loss Rs 55, she adds. The stock is currently trading at Rs 59.55, up 0.4% on the BSE.

Buy Maruti at Rs 1200-1250 with target of Rs 1550-1600, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 1359, down 0.8% on the BSE.

Hold Gitanjali Gems with target of Rs 140-145, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 90, he adds. The stock is currently trading at Rs 106.10, up 2.5% on the BSE.

Buy an August Call on ITC and hold on to it, says Sudarshan Sukhani, technical analyst, on CNBC TV18. It could become a Nifty heavyweight again, he adds. The stock is currently trading at Rs 236.25, down 1% on the BSE.

Buy YES Bank with target of Rs 180, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 150, he adds. The stock is currently trading at Rs 164, up 1.5% on the BSE.

Buy sugar stocks on dips, says Sudarshan Sukhani, technical analyst, on CNBC TV18. Shree Renuka Sugar is touching all-time highs so that is certainly the leader in this pack, he adds. The stock is currently trading at Rs 154.10, up 0.4% on the BSE.

Buy PFC at current levels with target of Rs 240, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 205, he adds. The stock is currently trading at Rs 219.60, up 0.7% on the BSE.

Credit Policy: RBI says it will respond to inflation changes via policy adjustments and adds that banks have cut rates and there is scope to cut further, reports CNBC TV18.

Hold Sterlite Industries with target of Rs 720, says Simi Bhaumik, technical analyst, on Zee Business. Keep trailing stop loss of Rs 640, she adds. The stock is currently trading at Rs 650.50, down 0.3% on the BSE.

Credit Policy: RBI ups inflation projection to 5% from 4%, reports CNBC TV18. M3 target has been raised to 18% versus the earlier figure of 17%, it adds.

Credit Policy: The RBI leaves CRR, Repo Rate and Reverse Repo Rate unchanged, reports CNBC TV18.

Book partial profits in HUL and hold the rest with target of Rs 325, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss below Rs 280, he adds. The stock is currently trading at Rs 300, up 0.4% on the BSE.

Buy Rolta India at current levels with target of Rs 170, says Rajesh Jain of SMC Global Securities on Zee Business. Keep stop loss of Rs 120, he adds. The stock is currently trading at Rs 137.80, up 0.9% on the BSE.

Hold NTPC with target of Rs 230, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss below Rs 208, she adds. The stock is currently trading at Rs 216.20, up 0.8% on the BSE.

Sell EIH with intra-day target of Rs 110, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 119, he adds. The stock is currently trading at Rs 114.30, down 2.4% on the BSE.

Buy Bharti Airtel with stop loss of Rs 400, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. It will give good gains, he adds. The stock is currently trading at Rs 423.90, up 0.1% on the BSE.

Hold GVK Power with targets of Rs 48-50 and then 56, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss below Rs 40, she adds. The stock is currently trading at Rs 44.80, up 0.8% on the BSE.

Buy PSL with intra-day target of Rs 130, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 118, he adds. The stock is currently trading at Rs 124.45, up 3.8% on the BSE.

Buy Shree Cements with target of Rs 1695, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 1365, he adds. The stock is currently trading at Rs 1560, up 1.3% on the BSE.

Buy Godrej Industries with intra-day target of Rs 160, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 150, he adds. The stock is currently trading at Rs 155, up 1.3% on the BSE.

Sell Ashok Leyland with intra-day target of Rs 33, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 36, he adds. The stock last traded at Rs 34.95, down 2.4% on the BSE.

Sell Ranbaxy Futures at Rs 275 with intra-day target of Rs 267, says Hemen Kapadia, technical analyst, on CNBC TV18. Keep stop loss of Rs 279, he adds. The stock last traded at Rs 273.95, down 2% on the BSE.

Buy JK Paper with intra-day target of Rs 34.50, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 29.75, he adds. The stock last traded at Rs 31.55, up 7.9% on the BSE.

Nifty has strong resistance at 4600-4620, says Ashwani Gujral, technical analyst, on CNBC TV18. He advises going short on the Nifty till about 4450 levels.

Buy 4500 Nifty Call Option at Rs 95 Premium with target of Rs 115, says Hemen Kapadia, technical analyst, on CNBC TV18. Keep stop loss of Rs 85, he adds.

Nifty is trading in a range of 4400-4600 and has strong resistance at 4600, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. Once we cross 4650 then we could see a good rally, he adds. He feels that the market is waiting for a positive trigger in order to move ahead and today's Credit Policy could be it.

BSE / NSE Indian Stock Markets Weekly Review 27-31 July 09

With the Q1 June 2009 earnings season over, the domestic bourses may track global markets in the coming days. A strong global risk appetite has boosted stocks across the globe in the past few days. The BSE Sensex struck its highest level in more than 13 months.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1792 companies rose 23% to Rs 69263 crore on 5.2% fall in sales to Rs 651371 crore in Q1 June 2009 over Q1 June 2008.

Brokerages are likely to revise their earnings estimates upwards for the Sensex after most companies forming the part of the index reported results that beat analysts' expectations.

The BSE Sensex gained 1.89% to 15,670.31 in the week ended 31 July 2009. It was the Sensex's highest closing since 17 June 2008. The S&P CNX Nifty rose 1.48% to 4636.45 in the week.

Foreign institutional investor (FII) bought shares worth a net Rs 9,653.60 crore in July 2009 (till 29 July 2009). FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. Their inflow in calendar year 2009 totaled Rs 34,197.80 crore

Investors will closely watch the progress of the annal monsoon as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains. The southwest monsoon rains, running between June to September, were 18% below normal in the week to 29 July 2009, having been above normal for the previous two weeks, the India Meteorological Department said on its website on Thursday, 30 July 2009. Total rainfall since the beginning of June was 19% below average, the weather bureau said.

Meanwhile, investor focus is likely to shift from secondary market to the primary market with the Adani Power's initial public offer seeing spectacular response. The public issue of 30.16 crore shares in the price band Rs 90-100 which opened for subscription from 28 July 2009 was oversubscribed 18.24 times by 15:00 IST on Friday, 31 July 2009, the last of the bidding. The company will raise up to Rs 3,016 crore at the upper end of the price band, making it the second-biggest issue after Reliance Power.

Close on the heels of Adani Power, state-run power company NHPC will hit the primary market to raise upto Rs 6048 crore through sale of shares in a price-band of Rs 30-36 in an IPO. The issue will open on 7 August 2009 and close on 11 August 2009. The company would sell 168 crore shares comprising of 5% stake divestment of the government and infusion of 10% fresh equity.

Globally the sentiment has been buoyant with the US equity indices surging to nine-month highs, with the Dow Jones above the psychological 9,000 mark on better-than-estimated results from frontline companies. Asian markets, too, struck 11-month high, as better-than-expected earnings of companies from Japan and US reinforced hopes of stronger global growth.

World equity funds garnered $9.5 billion in the week ending 29 July 2009, according to data the latest data from global fund tracker EPFR Global. The inflow was the highest since June 2008.

Emerging markets continued to be the darling of investors, with dedicated BRIC (Brazil, Russia, India and China) equity funds seeing net inflows for a 19th straight week. India equity funds took in a year-to-date high of $211 million in the most recent week, while China and Greater China stock funds saw $711 million in fresh money.

Meanwhile, investors will closely watch the preliminary second-quarter US GDP data about to be released by the Commerce Department on Friday, 31 July 2009. Economists forecast a 1.5% annualised pace of contraction in the second quarter, following a 5.5% drop in the first three months of 2009.

BSE NSE Indian Share Market Report 27 July 2009

BSE NSE Indian Share Market Report 27 July 2009

Key benchmark ended almost unchanged after gyrating either side throughout the day. Global cues were positive with Asian and European markets trading higher. The BSE 30-share Sensex slipped 3.92 points or 0.03% to 15,375.04, off 88.05 points from the day's high, but up 146.58 points from the day's low. The BSE small and mid-cap indices outperformed the Sensex

The market opened on a subdued note as index heavyweight Reliance Industries (RIL) fell on weak Q1 June 2009 results it announced after trading hours on Friday, 24 July 2009. The market firmed up soon on buying in banking and IT pivotals. The Sensex hit its highest level in 1-1/2 months. However, the rally proved short-lived. The Sensex once again slipped into the red. The Sensex dropped to intraday low in afternoon trade before cutting losses. Rally in FMCG, metal and realty shares aided further recovery on the bourses in late trade

The market may remain volatile this week as investors rollover positions from July 2009 contacts to August 2009 contracts ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009.

With some initial public offers (IP)) lined up in the next few days starting with Adani Power's IPO on Tuesday, 28 July 2009, investor focus may shift to primary market from secondary market. Close on the heels of Adani Power, state-run NHPC is ready to hit the primary market in August to raise Rs 1,680 crore. Besides, Oil India and Pipavav Shipyard collectively plan to raise over Rs 2000 crore

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 698 companies rose 15.7% to Rs 42183 crore on 2% growth in sales to Rs 321044 crore in Q1 June 2009 over Q1 June 2008.

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.

On the flip side, India's exports declined by 29.7% in June 2009 from a year earlier, R.S. Gujaral, Director General of Foreign Trade, said Friday, 24 July 2009. The declining trend in exports is expected to continue for some more time, he said.

European markets were trading firm today, 27 July 2009, extending a 2-week rally, on gains in bank stocks. Key benchmark indices in UK, Germany and France were up by between 0.23% and 1.2%.

Asian markets were trading firm today, 27 July 2009 on upbeat corporate earnings. Key benchmark indices in Hong Kong, China, Taiwan, Singapore, South Korea and Japan rose by between 0.79% and 1.86%.

Wall Street ended on a mixed note on Friday, 24 July 2009. The Nasdaq Composite index fell, snapping a 12-day winning streak, following Microsoft Corp's disappointing quarterly results. But gains in pharmaceutical and energy shares lifted the Dow and the S&P 500 to fresh 8-month closing highs. The Dow rose 23.95 points, or 0.26%, to 9,093.24. The Standard & Poor's 500 Index rose 2.97 points, or 0.30%, to 979.26. But the Nasdaq Composite Index declined 7.64 points, or 0.39%, to 1,965.96.

Trading in US index futures showed the Dow could rise 32 points at the opening bell on Monday, 27 July 2009.

The BSE 30-share Sensex was down 3.92 points or 0.03% to 15,375.04. The Sensex opened 28.07 points lower at 15,350.89. The Sensex rose 84.13 points at the day's high of 15,463.09, its level since 12 June 2009, in early trade. The Sensex lost 150.50 points at the day's low of 15,228.46 in afternoon trade.

The S&P CNX Nifty was up 3.75 points or 0.08% to 4,572.30. Nifty July 2009 futures were at 4576.30, at a premium of 4 points as compared to the spot closing.

The Sensex is up 5727.73 points or 59.31% in calendar year 2009 as on 27 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,214.64 points or 88.41% as on 27 July 2009.

Coming back to today's trade, turnover on NSE's futures & options (F&O) segment was Rs 50,488.19 crore, sharply lower than Rs 72,581.23 crore on Friday, 24 July 2009. The BSE clocked a turnover of Rs 6036 crore, lower than Rs 6,846.64 crore on Friday, 24 July 2009

The market breadth, indicating the overall health of the market, was strong. On BSE, 1672 shares advanced as compared with 985 that declined. 87 shares remained unchanged.

The BSE Mid-Cap index gained 1.63% to 5,469.50 and BSE Small-Cap index rose 1.53% to 6,142.74. Both these indices outperformed the Sensex

The BSE Realty index (up 3.11%), the BSE Consumer Durables index (up 1.66%), BSE Capital Goods index (up 0.69%), the BSE Power index (up 2.29%), the BSE IT index (up 0.61%), the BSE TECk index (up 0.88%), the BSE FMCG index (up 3.64%), the BSE Metal index (up 1.93%), BSE PSU index (up 0.33%), the BSE Healthcare index (up 0.27%), outperformed the Sensex.

The BSE Auto index (down 0.51%), the BSE Oil & Gas index (down 3.09%), the BSE Bankex (down 0.07%), underperformed the Sensex.

Among the 30-member Sensex pack, 16 declined while the rest gained

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) lost 3.81% to Rs 1937 after the company reported disappointing Q1 June 2009 results after trading hours on Friday, 24 July 2009. But the stock came off the day's low of Rs 1908. RIL has a 14.12% weightage in the Sensex.

RIL's net profit fell 11.5% to Rs 3636 crore on a 22.9% decline in sales to Rs 32055 crore in Q1 June 2009 over Q1 June 2008. RIL saw its net profit dip for the third straight quarter, as margins from its refining business halved and the global recession reduced fuel demand. RIL's gross refining margins (GRMs) - the difference between cost of crude oil and the price of refined petroleum products - came down 52.22% to $7.5 per barrel in Q1 June 2009 compared with $15.7 per barrel in Q1 June 2008.

India's largest state-run oil explorer by market capitalisation ONGC slumped 2.99% on reports the company is delaying the development of as many as 66 small discoveries because production from the fields may not be enough to recover costs.

GAIL India slumped 3.61% after net profit fell 26.9% to Rs 655.84 crore on 5.1% rise in net sales to Rs 6021.42 crore in Q1 June 2009 over Q1 June 2008. The company declared its results on Saturday, 25 July 2009.

Shares of state run oil marketing companies slipped on rise in crude oil prices. HPCL (down 1.42%), and Indian Oil Corporation (down 0.74%), edged lower. However, BPCL rose 0.14%. Higher oil prices will results in increase underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Castrol India galloped 9.38% after net profit rose 55% to Rs 128.40 crore on a 2.56% rise in total income to Rs 646.80 crore in Q2 June 2009 over Q2 June 2008. The result was announced during trading hours today, 27 July 2009.

India's largest truck market by sales Tata Motors gained 3.76% to Rs 387.55, rebounding sharply from day's low of Rs 356.80 after net profit rose 57.54% to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008. Analysts had expected a steep fall in net profit due to lower sales volume. The result was announced at the fag end of the trading sessions today, 27 July 2009.

Tata Motors attributed the strong results to continued focus on cost efficiencies, decline in raw material prices and improvement in sales realization

But other auto stocks dropped on profit taking after a recent sharp surge. India's top small car maker by sales Maruti Suzuki India declined 0.79%. The stock had stuck a record high of Rs 1397.50 in intra-day trade on Friday, 24 July 2009 buoyed by better than expected results announced during market hours on Thursday, 23 July 2009.

India's largest bike manufacturer by sales Hero Honda Motors lost 2.81% ahead of its Q1 June 2009 results on 29 July 2009. India's biggest tractor maker by sales Mahindra & Mahindra dropped 1.92% ahead of its Q1 June 2009 results on 30 July 2009

India's largest private sector bank by net profit ICICI Bank slipped 1.75% to Rs 753.40, off day's high of Rs 784.80 on profit taking. The bank's net profit rose 20.63% to Rs 878.22 crore on a 2.2% decline in operating income to Rs 9223.32 crore in Q1 June 2009 over Q1 June 2008. The bank, which reported its earnings on Saturday, 25 July 2009, has a 7.61% weightage in Sensex.

Cost-cutting measures and treasury profits enabled the country's largest private lender, ICICI Bank, beat market estimates in Q1 June 2009. ICICI Bank recorded a treasury income of Rs 714 crore in Q1 June 2009 as against a loss of Rs 594 crore in Q1 June 2008.

India's biggest bank in terms of branch network State Bank of India (SBI) rose 0.44% after the state-run bank reduced interest rates on deposits by 25-50 basis points (a basis point equals one-hundredth of a percentage point) with effect from today, 27 July 2009.

Bank of Baroda lost 3.53% despite reporting a 84.80% rise in net profit to Rs 685.38 crore on 24.4% rise in total income to Rs 3806.37 crore Rs 4735.15 crore in Q1 June 2009 over Q1 June 2008.

Andhra Bank rose 1.29% after net profit jumped 230.10% to Rs 256.22 crore on 37.9% rise in total income rose to Rs 1,745.92 crore in Q1 June 2009 over Q1 June 2008. The bank declared results on Saturday, 25 July 2009.

Bank of India (BOI) lost 4.21% after the bank's net non-performing assets jumped 96.41% to Rs 1234.43 crore in Q1 June 2009 over Q1 June 2008. BoI's net profit rose 3.98% to Rs 584.32 crore on 22.09% rise in total income to Rs 5,023.61 crore in Q1 June 2009 over Q1 June 2008. The state-run declared its results during trading hours today, 27 July 2009.

Analysts expect the Reserve Bank of India (RBI) to maintain a status-quo on key policy 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.

India's largest FMCG company by sales Hindustan Unilever surged 6.70% to Rs 301 after striking a 52-week high of Rs 305.40 on BSE in intra-day trade today, 27 July 2009. The stock advanced ahead of its Q1 June 2009 results on Tuesday, 28 July 2009. It was the top gainer from the Sensex pack.

Other FMCG stocks also logged gains on fresh buying after revival in monsoon. Nestle India (up 3.98%), Marico (up 2.62%), Britannia Industries (up 1.72%), Tata Tea (up 3.35%) and Dabur India (up 2.46%), gained. FMCG companies derive substantial revenue from rural sales.

Godrej Consumer Products surged 9.57% to Rs 227.30 after net profit jumped 75.9% to Rs 60.29 crore in Q1 June 2009 over Q1 June 2008. The stock hit a record high of Rs 235 today, 27 July 2009.

Asian Paints jumped 2.96% after net profit rose 67.8% to Rs 164.45 crore on a 17% rise in sales to Rs 1164.82 crore in Q1 June 2009 over Q1 June 2008.

India's second largest private sector power generation company by sales Tata Power Company surged 5.82%. The company during trading hours on 22 July 2009, said strong response for its global depository receipt (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.

India's largest power generation firm by sales NTPC gained 1.33%. The company reported 27.05% rise in net profit to Rs 2193.62 crore on 24.59% rise in total income to Rs 12778.96 crore in Q1 June 2009 over Q1 June 2008. The results were declared by the company after market hours today, 27 July 2009

Realty stocks gained on the government's thrust on the housing sector in the Union Budget 2009-10. DLF (up 4.64%), Unitech (up 0.80%), Housing Development & Infrastructure (up 4.50%), Parsvnath Developers (up 5.72%), Omaxe (up 13.66%), and Indiabulls Real Estate (up 2.15%), advanced.

Telecom pivotals held firm of the first meet of group of ministers (GoM) to decide on the base price for 3G spectrum on 31 July 2009.

India's second largest cellular services provider by sales Reliance Communications rose 2.32%. India's largest listed cellular services provider by sales Bharti Airtel advanced 1.93%.

The GoM is set up to look into matters relating to pricing of spectrum and number of operators to be allowed in each telecom circle. The finance ministry had proposed a base price of Rs 4,040 crore for 3G spectrum, whereas the Department of Telecom (DoT) suggested a price of Rs 3,540 crore. While presenting the Union Budget, the finance minister, Mr Pranab Mukherjee, said Rs 35,000 crore was expected to be raised from the auction.

Metal stocks extended recent gains on firm base metal prices. LMEX, a gauge of six metals traded on the London Metal Exchange rose 0.43% on Friday, 24 July 2009. National Aluminium Company (up 0.62%), JSW Steel (up 6.21%), Tata Steel (up 3.93%), rose. India's largest private sector copper marker by sales Sterlite Industries India ended unchanged at Rs 652.80

Copper and aluminum jumped to the highest in nine months in Shanghai after China reiterated its commitment to sustain economic growth in the world's largest consumer of industrial metals. Zinc climbed to a 10-month high.

Infrastructure stocks rose on the government's thrust on the infrastructure sector in the Union Budget 2009-2010. Bharat Heavy Electricals (up 2.48%), Lanco Infratech (up 5.46%), GMR Infrastructure (up 3.99%), IVRCL Infrastructure (up 0.74%), GVK Power Infrastructure (up 6.40%), rose. However India's largest engineering & construction company by sales Larsen & Toubro was down 0.33%

India's largest dam builder by sales Jaiprakash Associates slipped 0.58% to Rs 240.10 on profit booking. The stock surged to day's high of Rs 254 after reporting 292.28% spurt in net profit to Rs 491.18 crore on a 77.19% spurt in total income to Rs 2116.86 crore in Q1 June 2009 over Q1 June 2008. The results were announced on Saturday, 25 July 2009.

IT stocks ended mixed on recent reports that the third largest global energy company 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 rose 0.92%. However, India's largest IT exporter by sales TCS fell 0.72%. On 17 July 2009, TCS announced Q1 results that beat market expectations. India's third largest IT exporter by sales Wipro slipped 0.10%. On 22 July 2009, Wipro announced better-than-expected Q1 results.

Reliance Industries was the top traded counter on BSE with turnover of Rs 330.04 crore followed by DLF (Rs 280.43 crore), HDIL (Rs 222.42 crore), ICICI Bank (Rs 188.96 crore) and Jaiprakash Associates (Rs 188.20 crore).

Ispat Industries was the top traded counter on BSE with volume of 1.90 crore shares followed by Suzlon Energy (1.76 crore shares), Mahindra Satyam (1.70 crore shares), IFCI (1.59 crore shares) and Cals (1.50 crore shares).

Tyre shares gained on fresh buying following robust earnings reported by Apollo Tyres and JK Tyre. MRF (up 16.85%), Goodyear India (up 9.10%), and Apollo Tyres (up 4.56%), gained.

MRF today reported a 294% jump in net profit to Rs 125.70 crore on 12.4% rise in net sales to Rs 1433.55 crore in Q3 June 2009 over Q3 June 2008. JK Tyre reported a two fold spurt in net profit, while Apollo Tyres posted a 95% jump in net profit in Q1 June 2009 over Q1 June 2008.

Bharat Electronics surged 4.58% after net profit galloped 2785.3% to Rs 72.71 crore on 134.7% spurt in net sales to Rs 900.98 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after market hours on Friday, 24 July 2009.

Gujarat NRE Coke spurted 9.11%. The company had on 20 July 2009, forfeited 4.55 crore convertible warrants and application money totaling Rs 39 crore held by promoter group consequent to expiry period of these warrants. The forfeiture of convertible warrants has eased concerns of equity dilution.

Godrej Industries soared 10% ahead of its Q1 June 2009 results on Wednesday, 29 July 2009.

Fortis Healthcare rose 8.82%. The company, during market hours on Friday, 24 July 2009, had reported 8.3% fall in net profit to Rs 1.56 crore on a 26.5% increase in sales to Rs 48.59 crore in Q1 June 2009 over Q1 June 2008.

Closing Bell 27 July 2009

Closing Bell 27 July 2009

The Indian markets remained volatile during the day. Although they opened in the positive, intense selling activity at higher levels led the markets to languish in the red for the rest of day. However, in the final hour of trading session renewed buying activity at lower levels led markets to recoup some of its losses. While the BSE BSE-Sensex closed lower by 12 points, the NSE-Nifty managed to close just above dotted line recording gains of around 2 points. However, stocks from the mid-cap and small-cap spaces ended the day on a strong note, recording gains of 1.4% each. Stocks from the banking, auto and energy sectors were at the receiving end, while stocks from the FMCG and realty sectors garnered investors’ interest. The advance to decline ratio was poised at 1.9 to 1 on the NSE.

Other Asian markets ended the day on a firm note. The European indices are currently trading mixed. Rupee was trading at 48.20 against the US dollar at the time of writing.

Asian Paints announced its 1QFY10 last Saturday. The company has reported an 18% YoY growth led by the decorative paints business. The company has witnessed a 5% expansion in operating margins during the quarter largely due to a fall in raw material costs and other expenditure (as percentage of sales). Net profits clock a robust 66% YoY growth led by 60% YoY growth in operating profits and higher other income. The stock of Asian Paints ended on a firm note.

Energy stocks ended the day lower led by Reliance Industries and ONGC. As per a leading business daily, ONGC has kept on hold the development of its six prospective discoveries that were made in the recent years due to the lack of sufficient infrastructure for development. In fact, three of these six assets lie in isolated areas where there is no infrastructure availability. The company has also not found customers for these discoveries. However, the company plans to develop infrastructure in a gradual manner for these projects going forward. These six discoveries are part of the 66 assets which the company has found in the recent years. The remaining finds are under various stages like production, development, delineation, appraisal and ongoing study. It may be noted that over the last 6 years, ONGC has made around 111 discoveries of which 45 have been put into production. For FY09, ONGC's crude oil production was 6.1 m tonnes, while the natural gas production was 5.75 bn cubic meters. The stock of ONGC closed in the negative.

As per estimates, India has to generate an incremental 10,000 MW capacity per year for the next 10 years to plug the demand supply gap. There is a need to shift the policy goal from energy conservation to energy efficiency and from energy inputs to the effectiveness of energy use and energy services. The Bureau of Energy Efficiency (BEE), which functions under the Ministry of Power, through its star campaign has saved 6,528 m units of power. This is roughly equivalent to three days of national consumption. The government's star campaign urged households to go for star-studded certified energy-saving appliances products and made industries adopt new technologies, helping save electricity worth 1,500 mw in FY09. BEE has set a target of saving 10,000 mw of power during the 11th Five Year Plan. Out of this, 2,100 mw has been achieved so far. It has set a target of 2,600 mw for FY10 and 3,000 mw for FY11.

The Indian markets continued to languish in the red during the previous two hours of trade. However, the overall market breadth remained positive as the total numbers of gainers outnumbered the total numbers of losers by 1.5 to 1 on the BSE. While buying activity is being witnessed in stocks from the realty, FMCG and metal sectors, stocks from the oil & gas and auto spaces are trading weak.

The BSE-Sensex and NSE-Nifty are trading weak, down by around 25 points and 10 points respectively. The BSE-Midcap and the BSE-Smallcap indices are however trading higher, up by around 1% each. The Rupee is trading at 48.23 to the Dollar.

Energy stocks are currently trading weak led by Reliance Industries, GAIL and ONGC. Castrol India announced its results today. During 2QCY09, the company reported a muted 3% YoY increase in revenues. However, on account of an 11% YoY decrease in costs, the company's operating profits increased by a whopping 57% YoY. The reduction in operating costs was largely on account of 12% YoY decline in raw material costs (as a percentage of sales). During the quarter, the company's operating margins expanded by 10.6% YoY to 31%. On account of a strong operating performance, Castrol recorded a 55% YoY increase in profits. As for its 1HCY09 performance, the company recorded a 3% YoY increase in revenues and a 32% YoY increase in profits as compared to the corresponding period in the previous year. It may be noted that during the quarter, the company was able to achieve such a strong operating performance as it held on to its product prices in spite of the sharp decline in input costs. The numbers speak immensely for the brand value attached to the company and its products.

Pharma companies are currently trading firm led by Wockhardt, Cadila Healthcare and Lupin. As part of its corporate debt restructure (CDR) program, pharmaceutical major, Wockhardt had eatlier decided to divest stake in its non-core businesses. However, a leading business daily today has reported that the company has decided to go slow as it has already secured the required funds for payments that are due in the current year. Under the CDR, Wockhardt has to divest its non-core assets at an estimated value of almost Rs 8 bn but the company has been given six years to complete the transaction. It is believed that the company is waiting for higher valuations before it puts such assets on the block. Some of the divestments include a few of its brands in the consumer health division, a 32-acre dairy and milk processing unit in Punjab and part of the 250 acres of land in Aurangabad. In addition, the company's promoter is also planning to divest less than 26% stake in Wockhardt Hospitals. It must be noted that Wockhardt's debt equity ratio is as high as 2.3:1 and the company had already sold its German generics business to raise funds to retire some of its debt.

Heavy selling activity among the index heavyweights led the Indian markets to trade below the dotted line during the previous two hours of trade. Buying activity is being led by stocks from the realty and FMCG sectors, while select energy and auto stocks are trading in the red. The overall market breadth is positive, with total gainers outnumbering the losers in the ratio of 1.8 to 1 on the BSE.

While the BSE-Sensex is trading lower, down by around 10 points, the NSE-Nifty is trading flat. However, the BSE-Midcap and the BSE-Smallcap indices are trading higher, up by around 1.0% and 1.2% respectively. The Rupee is trading at 48.21 to the Dollar.

As per a leading business daily, ITC plans to focus on its high margin agri business in order to increase its margins and net profits. It may be noted that earlier the company had been contemplating exiting its non profitable divisions. Subsequently, it exited from the some commodity relates businesses which were not profitable namely those with products like non-basmati rice, course cereals and pulses. It currently plans to focus on the sourcing of raw materials for the high margin commodity segment. For this, the company is leveraging its e-Choupal network, set up in rural India to source the raw materials and sell finished products in the markets. Currently, the company has 6,500 e-Choupals and plans to increase the number to 20,000 by 2012. During 1QFY10, ITC's revenues from the agri business declined by 49% YoY, while the net profits reported a growth of 31% YoY on account of its continuous effort of increasing profitability from the segment. The segment contributes around 10% to ITC's total consolidated revenues. The stock is trading marginally higher.

Pharma stocks are trading mixed. While Fresenius Kabi is trading firm, Ranbaxy and Glenmark Pharma are in the red. Ranbaxy had announced its 2QCY09 results last Friday. The revenues declined by 1% YoY due to the adverse impact on its US business (that declined 41% YoY in dollar terms) on the back of the ongoing issues with the US FDA. The European markets were also impacted and declined by 12% YoY on account of price regulation and currency devaluation in the Romanian markets. However, the emerging markets performed well during the quarter. Operating margins tanked to 3% during the quarter on the back of a substantial increase in raw material and staff costs as a percentage of sales. This resulted in a net loss for the quarter to the tune of Rs 1 bn (excluding extraordinary profits on account of reversal of the forex loss reported in 1QCY09). Going forward, Ranbaxy expects the branded and emerging markets to continue to help it offset difficult conditions in the developed markets. However, solving the issues with the US FDA will be the key in getting the company's growth back on track.

In line with its Asian peers, the Indian markets too have opened the day's proceedings on a positive note. Buying is being witnessed across sectors with FMCG, engineering and telecom stocks leading the pack of gainers. The overall advance to decline ratio is poised at 2.7:1 on the NSE. As regards global markets, while the US markets ended higher led by better-than-expected corporate results, the European markets ended in the red last Friday. The Asian markets are trading firm currently.

The BSE Sensex is trading higher by around 40 points. The NSE Nifty is up 5 points. The BSE Midcap and the BSE Smallcap indices are trading higher by 1%. The rupee is trading at 48.12 to the dollar.

Bharat Forge announced its 1QFY10 results last Friday. The topline reported a drop of 44% YoY led by decline in both, the domestic and the export business. Exports saw a 52% YoY decline, while the domestic sales saw a drop of 38% YoY. However, on a sequential basis, some improvement was seen. The topline did improve to report a 23% QoQ growth. On the operating margins front, the company witnessed a decline by 3.6% YoY due to higher staff costs as a percent of sales. Excluding the exchange loss, the net profit declined by 84% YoY led by a 52% YoY fall in the operating profits and lower other income. The company is witnessing some recovery in the US and the European markets. It also has plans for restructuring its subsidiaries and rationalisation of manpower costs. While on a year to year basis, the performance was impacted due to the unprecedented downturn, with auto sales now seeing an improvement the management expects the scenario to improve. Auto ancillaries stocks are trading higher.

Godrej Consumer Products (GCPL) is planning to acquire a 100% stake in Godrej Sara Lee (GSL). Godrej Sara Lee, is a 49:51 joint venture company between two wholly-owned subsidiaries of Godrej & Boyce and Sara Lee Corp. GSL is the market leader in household insecticides, air care and hair cream in India. It has popular brands like GoodKnight, JET, HIT, AmbiPur, Brylcreem and KIWI. Globally, Sara Lee has announced that it would like to sell off its household and body care division. GCPL had earlier decided to acquire a 49% holding in GSL by merger of Godrej ConsumerBiz Private (GCBPL) and Godrej Hygiene Care Private (GHCPL) into itself. The company now plans to acquire the remaining 51% stake. The deal size is estimated to be around Rs 8.5 to 9 bn. The proposed consolidation would strengthen the position of GCPL in the FMCG market and give it the strategic flexibility and scale to pursue growth opportunities. It will also provide cost and operational synergies and widen the brand portfolio considerably. FMCG stocks are trading in the positive territory.

The next few quarters are likely to be a tough period for the Reserve Bank of India (RBI) when it comes to maintaining a balance in its monetary policy. With India's fiscal deficit widening to 6.8% of gross domestic product (GDP) and government borrowings likely to rise to Rs 4.5 trillion, the central bank is in for a challenge on how to gravitate within its interest rate spectrum.

As you know, maintain the right level of interest rates to propel growth and at the same time keep inflation under control is the prerogative of the RBI. And how successful will it be in doing this balancing act remains to be seen.

Most economists expect the RBI to maintain a status quo on interest rates (and not increase rates) given that we still remain unclear about the sustainability of an economic recovery. Further, factors such as poor monsoons and slow credit growth cannot be ignored.

During the month of June, the monsoon deficit figure stood as high as a 48%, the lowest in nearly 15 years. As for data related to the credit growth, the same is believed to have come down to 16% YoY in the month of June, which is again the slowest in a few years.

Proponents of a cut in interest rates further cite the declining inflation as a major reason. As a matter of fact, the wholesale price index (WPI) inflation rate has been in the negative zone for about six weeks and as per the latest available data, it stands at a negative 1.17% (or deflation). The central bank is thus expected by some to cut rates further to help revive demand and bring the country out of deflation, which is considered even worse than inflation.

So, how will RBI do a balancing act? We will not hazard a guess here. There are, in fact, too many variable factors that the bank needs to take into account before announcing its next policy action.

BSE NSE Indian Share Market Voices 27 July 2009

BSE NSE Indian Share Market Voices 27 July 2009

Notwithstanding a bright spell in the positive territory in morning trade, it was a flat close for the Indian stock market today as investors chose to tread a cautious path amid a slew of earnings reports.

Global markets were firm but investors back home appeared none too keen on building up positions ahead of the monetary policy statment of the Apex bank.

The Sensex ended the day at 15,367.47 (provisional) with a marginal loss of 11.49 points. In intra-day trades, the Sensex hit a high of 15,463 and a low of 15,228.

Select IT and capital goods moved higher. Midcap and smallcap stocks found good support. The market breadth was strong once again.

HUL, Tata Power, DLF, Tata Steel, Tata Motors, ITC, BHEL and RComm rallied sharply. Grasim, Bharti Airtel, NTPC and Infosys also closed on a firm note.

RIL fell on weak results and ended nearly 4% down.

ONGC, Hero Honda, M&M, ICICI Bank, HDFC and Hindalco also closed on a weak note.

Axis Bank, Jindal Steel, Suzlon, SAIL, Power Grid, HCL Technologies and PNB ended with notable gains.

GAIL, Idea Cellular, Ranbaxy and Tata Comm declined sharply.

Zee Entertainment Enterprises touched an intraday high of Rs 185.85 and an intraday low of Rs 174. At 2:31 pm, the share was quoting at Rs 176.40, down Rs 7.5, or 4.08%.

It was trading with volumes of 288,954 shares. On Friday the share closed down 0.03% or Rs 0.05 at Rs 183.90.

The market is likely to remain volatile over the next few sessions due to expiry of July series derivatives contracts.

With global economy showing signs of a revival, a fair amount of short covering is likely in the F&O segment over the next couple of sessions.

Short term traders can take advantage of rallies and book some profits.

Cipla touched an intraday high of Rs 289 and an intraday low of Rs 279.50. At 2:35 pm, the share was quoting at Rs 280, down Rs 3.45, or 1.22%. The company has board meet on July 29 on QIP/NCD/FCCB issue, reports CNBC-TV18. It was trading with volumes of 77,351 shares. Yesterday the share closed down 0.28% or Rs 0.80 at Rs 283.45.

Zee Entertainment Enterprises touched an intraday high of Rs 185.85 and an intraday low of Rs 174. At 2:31 pm, the share was quoting at Rs 176.40, down Rs 7.5, or 4.08%. It was trading with volumes of 288,954 shares. On Friday the share closed down 0.03% or Rs 0.05 at Rs 183.90.

Titan Industries has posted a net profit of Rs 46.04 crore for the quarter ended June 2009, a rise of 41% over the figure recorded in the corresponding quarter last year. The stock, which had touched a high of Rs 1375 this morning, is currently trading at Rs 1335 with a gain of 1.6%. Over 37,000 shares have changed hands at the Titan Industries counter today. The average daily volume at the counter over the past couple of weeks is around 5200 shares.

Mehraboon Irani, Senior VP-Equity, Centrum Broking is of the view that CESC can appreciate about 25-30% from here over the next six months

"Despite the 3% increase in the topline, CESC's operating profit was sharply higher but interest cost possibly took up some of the chunk from the bottomline. The bottomline was up around 12%. But having said that the fact is that we need to understand that CESC has worked very hard. One crore a day they are saving on transmission and distribution (T&D) cost that is number one. Secondly, their plant load factor (PLF) for the four operational plants is around 90-95% which is also a good thing. Thirdly, it is working on a 600 megawatt (MW) plant at Haldia for which they need only 40 acres of land. Once they are able to get that particular land there should be financial closure for this particular plant also". - Mehraboon Irani told CNBC-TV18

GAIL India touched an intraday high of Rs 364.70 and an intraday low of Rs 339.05. At 2:03 pm, the share was quoting at Rs 339.15, down Rs 13.05, or 3.71%. It was trading with volumes of 356,644 shares. On Friday the share closed up 1.92% or Rs 6.65 at Rs 352.20. Global economy appears to be recovering gradually.

Still, it is not the right time to go on a buying spree in the market.

Quarterly numbers have mostly been good this time around with some top notch companies even beating forecasts.

Since the market has run up pretty fast over the past few months, a few strong corrective spells are not ruled out. Blue chips can be picked up in a staggered manner.

MIC Electronics touched an intraday high of Rs 45.50 and an intraday low of Rs 41.30. At 2 pm, the share was quoting at Rs 41.40, down Rs 3.35, or 7.49%.

It was trading with volumes of 840,529 shares. On Friday the share closed up 9.41% or Rs 3.85 at Rs 44.75.

Bata India has target of Rs 220-225: Mehraboon Irani "I personally feel that markets have not understood well Bata's numbers. I think 8% increase in sales; around 20% increase in profit before interest depreciation in tax and the bottomline increase of 13%, which has failed to cheer the market as of now. What impresses me about Bata which we have tracked quite closely is that the earnings per share of 2.88 is a definite increase over Q1. Let us understand that Bata's yearend is in December. March quarter was around 2.52, this 2.88; if we put it together it works around Rs 5.3 EPS for the first half of the year." - Mehraboon Irani told CNBC-TV18

Balrampur Chini has posted a net profit after extraordinary items of Rs 662.90 million for the quarter ended June 30, 2009 as compared to Rs 168.50 million for the quarter ended June 30, 2008.

The stock is up 1.25% at Rs 109.20. One looking at long term can pick up more of this stock at dips.

Lanco Infratech (Rs 440) can be retained for long term.

Though a correction looks likely after recent strong gains, one can use sharp dips to add more quantities.

Technical Analyst, Vijay Bhambwani is of the view that one can invest in Shree Cements with be 2 or 3 quarter time frame.

"In Grasim you can take a positional punt rather than an intraday punt. Shree Cements would be 2 or 3 quarter time frame kind of an investment at the present levels because this stock has been showing a huge amount of relative strength comparative vis-a-vis the Nifty Fifty. On Ambuja Cement one could take a punt intraday with Rs 1-2 kind of a target objective because of all the three Ambuja Cemenst would be the shortest term perspective because this stock actually has been lagging off late and Grasim for the medium term and Shree Cements for the long term. - Bhambwani told CNBC-TV18

Investment Advisor SP Tulsian is of the view that Ranbaxy Laboratories can add Rs 10-12 from current level.

"The performance of Ranbaxy has definitely been better because in fact we have sent the EBITDA of about 7% and I am not going by the bottomline, which has mainly got a boost because of the reversal of the derivative losses and the forex losses to the extent of about Rs 800 crore. But atleast they have EBITDA positive to the extent of about 7% EBITDA margin. The management has hinted that they will be able to achieve a topline of close to Rs 7000 crore with net loss of about Rs 800 crore for the calendar year 09 but the drop or the problem which they have been facing continuously to be the US market. If they can improve on that front in the next two quarters for the calendar year 09 I do not think that you have any fear on the stock." - Tulsian told CNBC-TV18

Technical Analyst, Vijay Bhambwani is bullish on ICICI Bank.

"I am bullish on ICICI Bank because I feel that the banking stocks are actually under pressure in the absolute short term. But over a period of 2-3 quarters I do expect ICICI Bank once it sustains above the Rs 810 levels over the next 3-4 quarters to actually go into four digits and along with HDFC Bank, which would be the first choice in the private sector bank. ICICI Bank could actually lead the surge. - Bhambwani told CNBC-TV18

Due to heavy selling in some blue chip stocks, the market has plunged deeper into the red this afternoon.

The Sensex is down by nearly 125 points at 15,254 and the Nifty has lost around 33 points at 4535.60.

Oil and auto stocks are down sharply in the red. Some key stocks from banking, PSU and capital goods sectors have also declined sharply on selling pressure.

Bank of Baroda touched an intraday high of Rs 454 and an intraday low of Rs 414.50. At 12:48 pm, the share was quoting at Rs 418.80, down Rs 14.4, or 3.32%. It has declared its Q1FY10 numbers. Its standalone net profit was up 84.89% to Rs 685.38 crore from Rs 370.86 crore, YoY.

Technical Analyst, Ashwani Gujral is of the view that Bank of Rajasthan has resistance at Rs 79.

"Bank of Rajasthan has support around Rs 52 and has got resistance around Rs 73 and then Rs 79. But banks overall are not showing the same kind of strength that they were doing earlier on." - Gujral told CNBC-TV18

Bank of India has posted a net profit of Rs 5843.20 million for the quarter ended June 30, 2009 as compared to Rs 5619.50 million for the quarter ended June 30, 2008. The stock is down by around half a per cent at Rs 345.75. Fresh buying can be considered at Rs 310 - 320 levels.

Omaxe touched an intraday high of Rs 117.70 and an intraday low of Rs 101. At 12:32 pm, the share was quoting at Rs 113.20, up Rs 12.55, or 12.47%. It was trading with volumes of 581,860 shares, compared to its five-day average of 180,779 shares, an increase of 221.86%. Yesterday the share closed up 5.67% or Rs 5.40 at Rs 100.65. - CNBC-TV18

Centrum Broking is of the view that there is much room for an upside for Shree Cements because valuation wise it is attractive and performance wise it is simply superb. - Mehraboon Irani told CNBC-TV18

Manishi Raychaudhuri, MD & HOR, BNP Paribas Securities has reduced rating on Tata Motors.

"The structural problem with Tata Motors is if one looks at the, if one leave out this short term things that is just the quarterly numbers etc, the structural problem is 65-70% of the revenues still come from United States and Western Europe and these markets are not really reviving. So we currently have a reduced recommendation on Tata Motors and we really do not see the possibility of any significant reversal to that atleast in the medium term." - Raychaudhuri told CNBC-TV18

Mahindra & Mahindra (cmp Rs 827) can be tried for intra-day if the stock rises to Rs 832 and stays firm for a while. A rise to Rs 840 - 845 is possible in intra-day trades. A stop loss can be placed at Rs 820.

Godrej Industries was locked at 10% upper circuit. It touched an intraday high of Rs 153.05 and an intraday low of Rs 140 at 12:06 pm. The share was quoting at Rs 153.05, up Rs 13.90.

There were pending buy orders of 57,590 shares, with no sellers available.

It was trading with volumes of 549,441 shares, compared to its five-day average of 251,854 shares, an increase of 118.16%.

On Friday the share closed up 0.32% or Rs 0.45 at Rs 139.15.

Investors long in GAIL India can stay invested and buy more at declines.

The stock can rise to Rs 410 - 415 and in the event of a strong breakout there, a rise to Rs 450 or even higher is possible.

A stop loss can be placed around Rs 280.

United Phosphorous touched an intraday high of Rs 169.70 and an intraday low of Rs 161.60. At 10:47 am, the share was quoting at Rs 166.10, up Rs 5.65, or 3.52%.

The company is eyeing Gharda Chem, reports DNA.

It was trading with volumes of 202,985 shares. On Friday the share closed up 7.04% or Rs 10.55 at Rs 160.45.

Bank of Baroda's net profit rose to Rs 6853.80 million for the quarter ended June 30, 2009 from Rs 3708.60 million for the quarter ended June 30, 2008. The bank's total income increased from Rs 38063.70 million for the quarter ended June 30, 2008 to Rs 47351.50 million for the quarter ended June 30, 2009.

The stock, which was up in the positive territory earlier in the day, has slipped into the red on announcement of results. At present, it is down with a marginal loss at Rs 430. One holding the stock with a long term plan can stay invested.

Fresh buying can be considered at sharp declines.

Manishi Raychaudhuri, MD & HOR, BNP Paribas Securities feels that there is a lot of steam left in Gujarat State Petronet, GSPL.

"In general power I think has not really been a big outperformer or underperformer. If you look at slightly broader space, the utility space in general we have liked GSPL. Those numbers clearly surprised positively and we think there is a lot of steam left in that stock purely on a fundamental basis. Apart from that I think on the pure power utility side we have not been very bullish. In fact in our model portfolio we do not have exposures to the power front liners like NTPC or Tata Power for that matter. - Raychaudhuri told CNBC-TV18

Castrol India has posted a net profit after tax of Rs 1284.00 million for the quarter ended June 30, 2009 as compared to Rs 828.00 million for the quarter ended June 30, 2008.

Total income has increased from Rs 6306.00 million for the quarter ended June 30, 2008 to Rs 6468.00 million for the quarter ended June 30, 2009.

The stock is up by 5.2% at Rs 425. On BSE, the Castrol counter has clocked a volume of 37,800 shares today, much higher than the average daily volume of around 18,700 shares.

Sell Union Bank of India at below 234 : ICICI Direct

Technical Analyst, Ashwani Gujral is of the view that one can buy Reliance Industries on declines.

"When this sort of news comes in, you let Reliance Industries for couple of days like on Sterlite, on the second day you got about Rs 560 and that was basically the low. So probably one more day and all the pent up selling, everybody who wants to get out gets out and then you get around that Rs 1,840-1,850 if you get there. So Reliance clearly is a buy on these bad results and even the market the reaction it is showing, is clearly showing strength and if Reliance tends to pick up in the later half of the day, then you will see further short-covering which could take out key levels later on in the day." - Gujral told CNBC-TV18

Divi's Laboratories Buy above at 1125 : ICICI Direct

The Nifty (4585) will find support at 4570 but a strong breach there could result in a fall to 4550 or even lower.

On the upmove, the benchmark can rise sharply if a decisive breakout happens at 4595.

Buy Bajaj Hindustan with stop loss at 181 : ICICI Direct

HCL Technologies has entered into a strategic alliance with eBaoTech Corporation, a leading provider or new generation software and services for life and general insurance industry.

HCL Tech will work with eBaoTech to identify fitment of eBaoTech products in select geographies and customers will now have access to a single integrated entity that can help them modernize their cor business managment systems and have a global reach through cost effective solutions.

Buy Nifty above 4568 : ICICI Direct

S Kumars Nationwide touched an intraday high of Rs 43.55 and an intraday low of Rs 41.10. At 10:18 am, the share was quoting at Rs 42.85, up Rs 1.75, or 4.26%.

The company board has approved issue of 1.24 crore warrants to promoters on preferential basis, reports CNBC-TV18. It was trading with volumes of 362,921 shares. On Friday the share closed up 5.52% or Rs 2.15 at Rs 41.10.

Nucleus Software Exports Ltd has informed that one of the major customers of an overseas subsidiary of the company, has on July 25, 2009 given notice to this subsidiary of partial cancellation of contracts, on a date one month from receipt of notice.

As per legal opinion received, and an assessment by management, there is no liability on the Parent Company, and there is no impact on the financial results of the Company for this quarter.

The Nucelus Software stock has declind sharply to Rs 86, netting a loss of 4.25%.

Sell Nagarjuna Construction at below 136 : ICICI Direct

ICICI Bank has beat forecast once again and posted strong results for the April - June 2009 quarter.

The numbers, however, have not triggered any significant buying at the counter till now. The stock is currently trading with a modest gain of 0.45% at 770. One holding the stock can stay invested and look to add more quantities at sharp dips.

Nifty has strong support at 4380-4350 levels, unless we see a break below this point markets are safe and healthy and every fall is a buying opportunity.

Major breakout will be only if nifty sustains above 4600 in the near future, till then we see the markets remaining in the range of 4140-4600. Going forward the focus should be in the midcap space as the large caps will remain sideline. - Nirmal Bang

Stocks to watch

Gail (India) Ltd, after the state-run gas transporter posted a 27 per cent fall in June quarter net profit.

Reliance Petroleum, after it posted net profit of Rs 105 crore ($22 million) for the June quarter on net sales of Rs 7639 crore.

Godrej Consumer Products Ltd after the personal care products maker posted a 78 per cent rise in June quarter net profit, beating forecasts.

Quarterly Results: Areva T & D India Ltd, Ashok Leyland Ltd, Punj Llyod, Tata Motors Ltd and Tata Teleservices (Maharashtra) Ltd