Learn2trade and Gain BSE / NSE

Ingeniouis Investor –
Investment Advisory Division of Ravina Consulting.
Intelligent Investment Ideas for Indian Investors has been helping Investors for the last 2 decades having extensive knowledge about the Indian Capital markets.

Ravina Consulting
Ravina Consulting is a Management Consulting firm engaged in providing professional advise to the clients. Intelligent Investor is a Division of Ravina Consulting exclusively focused on providing research based support to enable Intelligent Investors to make wealth from the Financial markets in India. This program is designed with a view to help the Indian investor keen on making money in the market

The operations have started since the boom of 1984 and with our experience of more than 25 years we have perfected the art of giving the best Portfolio Management / Investment Advisory Services.

www.ingeniousinvestor.blogspot.com
Follow us – www.twitter.com/SmartInvestor

COURSE TITLE : ABCs of Stock Market Investing

OBJECTIVES
• Understanding Indian Financial Markets
• BSE – How it functions
• NSE – How it functions
• Commodities Exchange – How it functions
• Foreign Exchange - Basics
• Sectoral Indices
• Global Indices to track
• Technical Analysis
• Long term / Short term investing
• Day traders delight how to win and time the market 1
. Portfolio - Creating & tracking

PROGRAMME CONTENTS
The course has 1 modules consisting of 30 sessions each conducted online of 30 lectures / sessions followed by an assessment. Out of which 15 are theoretical in nature and 15 are practical applications.

TOOLS & TECHNIQUES :
We provide you with tools and explain the techniques to track the market and make money. We have the following investment options :
1. Long term investment – with holding of more than 12 Months
2. Short term investment – with holding of more than 1 month
3. Weekly investment – mostly BTST with holding of 1 week
4. Day trading – how to trade and make money


PARTICIPANTS' PROFILE
This program is designed for everyone who is keen to enter the Indian Stock
markets – B S E or N S E

Qualification :
A candidate wishing to undergo this program should be conversant with English and able to understand the program contents. Candidate should have basic knowledge of working on computers and is work with MS office and familiar with internet browsing.

Method of Delivery
Web-based / Online / telephone one hour for each session. The online sessions will be based on the presentations / study material sent to the candidates at
the time of registration.

Study Material
A well researched and informative set of study material is given to the students. A simple and easy to understand style of reports makes it easy even for the novices to know about the nuances of the Indian Share Market. The Study Material will be sent by hard copy / soft copy.

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
No.429 Mahavir Tuscan
Near Hoodi Circle, Whitefield
Mahadevapura Post
BANGALORE 560048

For Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor

Learn2trade and Gain BSE / NSE

Ravina Consulting
Ravina Consulting is a Management Consulting firm engaged in providing professional advise to the clients. Intelligent Investor is a Division of Ravina Consulting exclusively focused on providing research based support to enable Intelligent Investors to make wealth from the Financial markets in India. This program is designed with a view to help the Indian investor keen on making money
in the markets

Intelligent Investor –
Investment Advisory Division of Ravina Consulting.
Intelligent Investment Ideas for Indian Investors has been helping Investors for the last 2 decades having extensive knowledge about the Indian Capital markets.

The operations have started since the boom of 1984 and with our experience of more than 25 years we have perfected the art of giving the best Portfolio Management / Investment Advisory Services.

www.ingeniousinvestor.blogspot.com
Follow us – www.twitter.com/SmartInvestor

COURSE TITLE : ABCs of Stock Market Investing

OBJECTIVES
• Understanding Indian Financial Markets
• BSE – How it functions
• NSE – How it functions
• Commodities Exchange – How it functions
• Foreign Exchange - Basics
• Sectoral Indices
• Global Indices to track
• Technical Analysis
• Long term / Short term investing
• Day traders delight how to win and time the market 1
. Portfolio - Creating & tracking

PROGRAMME CONTENTS
The course has 1 modules consisting of 30 sessions each conducted online of 30 lectures / sessions followed by an assessment. Out of which 15 are theoretical in nature and 15 are practical applications.

TOOLS & TECHNIQUES :
We provide you with tools and explain the techniques to track the market and make money. We have the following investment options :
1. Long term investment – with holding of more than 12 Months
2. Short term investment – with holding of more than 1 month
3. Weekly investment – mostly BTST with holding of 1 week
4. Day trading – how to trade and make money


PARTICIPANTS' PROFILE
This program is designed for everyone who is keen to enter the Indian Stock
markets – B S E or N S E

Qualification :
A candidate wishing to undergo this program should be conversant with English and able to understand the program contents. Candidate should have basic knowledge of working on computers and is work with MS office and familiar with internet browsing.

Method of Delivery
Web-based / Online / telephone one hour for each session. The online sessions will be based on the presentations / study material sent to the candidates at
the time of registration.

Study Material
A well researched and informative set of study material is given to the students. A simple and easy to understand style of reports makes it easy even for the novices to know about the nuances of the Indian Share Market. The Study Material will be sent by hard copy / soft copy.

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

No.429 Mahavir Tuscan

Near Hoodi Circle, Whitefield

Mahadevapura Post

BANGALORE 560048

For Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor

Closing Bell 3rd June 2009

Closing Bell 3rd June 2009

After falling into the red during the afternoon session, persistent buying activity during the second half of trade led the indices to end the day on a flat note. The BSE-Sensex ended the day lower by around 5 points, while the NSE-Nifty closed higher by about 5 points. Stocks from the mid-cap and small-cap spaces continued their upsurge as they ended the day with gains of around 1.5% and 2.1% respectively. While buying activity was witnessed in stocks from the FMCG, consumer durables and healthcare spaces, stocks from the banking and IT space ended the day on a negative note.

Most of the other Asian markets ended the day on a positive note. The European indices are currently trading in the red. Rupee was trading at 46.97 against the US dollar at the time of writing.

Aluminium stocks ended the day on a firm note led by Hindalco and Nalco. As per a leading business daily, the government is likely to impose a 10% safeguard duty on the imports of key aluminium products that are used in the automobile and machinery sector. It may be noted that of late, the aluminium industry has been under pressure due to cheaper imports from China, South Korea, Oman and Iran. This move by the government can be viewed as a step to support the domestic aluminium producers.

Cement stocks ended the day on a firm note led by Ambuja Cements and ACC. The month of May 2009, was a strong one for the cement industry as it recorded high volumes sales on account of higher demand. A leading business daily reported that Ambuja Cements increased its shipments by around 8.3% YoY, while that of Grasim Industries and UltraTech Cements grew by around 20% YoY each. As for Shree Cement, the company has recorded an increase of 32% YoY during the month. However, this is mainly on account of new capacity additions. It may be noted that the period before the monsoon season is usually the peak season for the construction sector.

In a recent meeting between the Finance Minister and exporters, issues and possible measures to tackle the falling exports were discussed. A leading business daily reported that the exporters have asked for an exemption from fringe benefit tax as well as faster refunds of service tax. In addition, they have also called for an interest rate of 7% for exports-related credit. In addition to all this, they proposed a Rs 50 bn fund which would allow them to market their products in emerging overseas markets like East Europe, Latin America or Africa. It may be noted that exports have been falling continuously for the past seven months on account of the falling demand from markets such as the US and Europe.

Profit booking at higher levels led the indices to move into the negative region during the previous two hours of trade. However, the overall advance to decline ratio continues to remain in favour of the former at 2.2 to 1 on the BSE. Currently, stocks from the IT and banking spaces are leading the pack of losers, while stocks from the consumer durables, FMCG and healthcare sectors are trading firm.

Two-wheeler stocks are currently trading mixed with Bajaj Auto trading firm, while Hero Honda and TVS Motor are trading in the red. In a move to safeguard itself from declining domestic volumes growth in addition to boosting sales, Bajaj Auto is looking to expand its business in markets such as Africa and Europe. As per a leading business daily, the company is looking at exploring these regions for marketing and selling its motorcycles particularly models such as the Boxer, CT 100 and Pulsar. While the company did witness a fall in volumes sales (even in export markets) during the month of May 2009, it may be noted that during FY09, nearly 29% of its total unit sales (including other two-wheelers and three-wheelers) comprised of motorbikes sold in the export markets. In fact, exports (as a whole) witnessed a 25% YoY growth in over all volumes over the previous year.

FMCG stocks are trading firm led by Dabur, Marico and HUL. As per a leading business daily, FMCG companies continued to witness high volume growth in the key products like detergents, soaps, biscuits and toothpastes. The industry volumes have grown by 20% YoY during the month of April and May 2009, mainly attributed to lower raw material costs and excise benefits that companies passed on to the customers. The growth was witnessed both, in the urban and rural areas. In fact, the industry expects volume growth of around 30% YoY for the entire FY10 led by strong demand in the rural areas. Further higher brand promotions and new launches (variants and price points) by the company are also expected to drive growth.

The Indian markets continued to trade in the positive territory on account of sustained buying activity witnessed during the previous two hours of trade. Stocks from the auto, telecom and aluminium sectors are leading the pack of gainers, while select stocks from the banking, software and energy sector are trading weak. The overall advance to decline ratio is poised at 4.2 to 1 on the BSE.

Pharma stocks are trading mixed. While Dishman Pharma and Ranbaxy are trading higher, Wockhardt is trading lower. As per a leading business daily, Dishman Pharma is likely to start its operations in China by August-September of 2009. The company is setting up a facility at Shanghai which will produce quaternary salts and medicine intermediates for international clients. It may be noted that Dishman Pharma is a leading player in the contract research and manufacturing services (CRAMS) space. It has invested around US$ 10 m in the Chinese facility. The management expects the facility to generate revenues of around US$ 10 m in first year of operation and US$ 20 m to US$ 25 m annually thereafter. While the company imports around 20% of active pharmaceutical ingredients (API) from China, the new facility in Shanghai is likely to reduce the cost of raw materials for it. Also, it plans to invest around Rs 1 bn in FY10 in order to boost the capacities at the Shanghai facility and the oncology facility at Ahmedabad.

Steel stocks are trading mixed. While Tata Steel and JSW Steel are trading higher, SAIL is trading lower. As per a leading business daily, India’s largest steel producer, SAIL managed to grow its domestic sales by 12% in May 2009 as compared to same period last year. It sold around 1 m tonnes (MT) during the period, which is the highest ever monthly sale recorded by it. It may be noted that the saleable steel production grew by 5% to 1.1 MT during the same period. SAIL’s domestic sales in the first two months of the current fiscal now stand at around 1.9 MT. The management of the company has planned a target of selling around 13 MT of steel in FY10. As per reports, demand for steel is likely to fall across the world except for India where it will likely grow by 6% to 7%.

BSE / NSE Shares analysis 3rd June 2009

BSE / NSE Shares analysis 3rd June 2009

Despite a heady start and subsequent firm display, the market slipped on profit taking and ended on a flat note today. Asian markets mostly ended higher. European markets opened weak and U.S. index futures edged lower, rendering the mood a bit cautious on the Indian bourses in afternoon trade.

The Sensex, which breached the 15,000 mark for the first time in 9 months, failed to retain gains and ended in negative territory today. The barometer provisionally settled at 14,845.56, down 29.35 points or 0.2%. It rose to a high of 15,046.43 in morning trade but fell to 14,733.59 around mid afternoon. The Nifty closed at 4520.90, down 4.35 points. It touched a high of 4574.90 and a low of 4478.60 today.

Consumer durables, FMCG, pharma and metal stocks had a good outing today. Bank, oil and IT stocks declined. Select realty, auto, capital goods and power stocks surged higher.

Hindalco, ITC, Grasim, ACC, RComm, JP Associates, Sun Pharma, Tata Motors, HUL, Tata Steel, Maruti, Sterlite and Ranbaxy ended with sharp gains. Mahindra & Mahindra, SBI, Infosys, ICICI Bank, RIL and HDFC Bank closed lower. Suzlon Energy flared up by over 14%.

Power Grid, Cipla, Ambuja Cements, Unitech, Tata Comm, PNB, Nalco, Siemens and RPower moved up sharply. Cairn India, HCL Tech, SAIL, ABB, BPCL, RPL, Hero Honda and GAIL closed with sharp losses.

Cranes Software (Rs 62) can be tried at Rs 50 - 53 levels for long term. Though a sharp fall from current levels looks unlikely, a modest decline is not ruled out in the near run. Long term investors can hold the stock with a stop loss near Rs 40.

Tech Mahindra (up 18.75% at Rs 663.50) is on a roll today. The stock, which had slipped to Rs 203.70 in late January this year, had hit a high of Rs 865 in early June 2008. The stock can well re-test that high over the next 3 - 6 months. One can stay invested in the stock and look at buying more in small quantities at declines.

Jaihind Projects Ltd has informed BSE that the Company in consortium has been awarded order of Rs 230.81 crore from Gujarat State Petronet Ltd for E.P.C. Project for Darod - Jafrabad Gas Pipeline Project - Section A. Earlier in the day, the company had bagged an order worth Rs 14.84 crore from Gujarat State Petronet Ltd for Laying of Olpad-Utran Gas Pipeline Project. The stock is up 5% at Rs 85.90 now.

European markets have opened on a weak note today with bank stocks drifting down sharply. U.S. index futures too are down in the red now. Back home, profit taking has wiped off early gains and a few heavyweights are seen struggling for support at present. Markets the world over are awaiting some key economic data from the U.S. today.

GMR Infrastructure (Rs 168) can rise to Rs 200 over a short run. Long term investors can hold the stock with a stoop loss near Rs 130. One can take some modest exposure in the counter now and go in for more at declines.

After recent strong gains, Mahindra & Mahindra is facing some pressure on profit taking. The stock is down by 4.2% at Rs 695 and a further fall from here is not ruled out. One looking at long term can stay invested and add more quantities at sharp dips. Fresh buying can be considered at Rs 600 - 610 levels.

Asian markets ended on a firm note today amid hopes of a global economic recovery. Strong economic data from U.S. and Australia aided sentiment in the region today. Indian markets are off their highs and are up just marginally at present.

Infrastructure firm MARG has signed an MoU with BSNL, India's leading telecommunication company, to provide world class telecommunication facilities in the upcoming mega infrastructure project, MARG Swarnabhoomi. As part of the MoU, BSNL will provide complete telecom solutions, including voice, data, WiFi hotspots, video and audio conferencing facility, broadband, leased lines and wireless services at MARG Swarnabhoomi.

One can buy ITC (Rs 202) for short to medium term. The stock can rise to Rs 220 - 225 where it is likely to face some stiff resistance. Short term traders can book some profits there and re-enter again at declines.

Balrampur Chini (Rs 95) looks set for a rise to around Rs 105 - 110. Investors with a reasonably good appetite for risk can try this stock now with a stop loss at Rs 85 - 87. Bajaj Hindustan, Renuka Sugars and Dwarikesh Sugars can also be tried at slight declines.

One looking for some sharp gains over a medium term can try Syndicate Bank (Rs 84) at current levels or slightly lower. The stock, which hit a new high at Rs 86 today, can move on to Rs 110 or even higher over a medium run. A stop loss can be placed near Rs 65.

Nucleus Software Limited has announced that it has further strengthened its six-year long relationship with United Finance Company SAOG (UFC), the largest finance company of Oman. Nucleus' FinnOne will now power UFC with its Lead Management System and Customer Service Module, to be implemented across 7 branches of the company. Buoyed up by the announcement, the Nucleus Software stock has jumped 6.5% to Rs 100 this morning.

Market Outlook

The market is likely to open on a positive note this morning. Though profit taking may cap gains, the undertone is likely to remain fairly bullish. A few volatile spells are not ruled out.

Sector Watch

Cement stocks are likely to remain in focus with most of the cement manufacturers reporting fairly strong shipment figures for May 2009. Steel, capital goods and infrastructure stocks are likely to attract attention.

Buying is expected to remain stock specific in information technology, FMCG and pharma sectors.

Scrip Watch

Hindustan Petroleum Corporation Limited has posted a net profit of Rs 51040.40 million for the quarter ended March 31, 2009 as compared to Rs 3845.10 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 317794.90 million for the quarter ended March 31, 2008 to Rs 255804.60 million for the quarter ended March 31, 2009. The HPCL counter is likely to see some buying today.

SAIL may surge higher following an announcement from the company that its domestic sales increased by 12% to about a million tons for May over the year-ago period.

BHEL is likely to see action following the company successfully commissioning two grid-interactive solar power plants of 100 KWP each in Lakshadweep. With this, BHEL has commissioned a total of eleven solar power plants in the Lakshadweep islands, adding over 1 MW of solar power to the power generating capacity of the coral islands in the Arabian Sea.

McLeod Russel, DCM Shriram and Nalco will be announcing their quarterly results today.

Macro and Market Factors

The Wall Street ended on a positive note despite a choppy ride yesterday. Better than expected pending homes sales data buoyed up sentiment there. Asian markets are also trading firm after initial weakness.

With economy showing signs of improving and expectations from the newly formed government increasing by the day, investors are likely to stay invested and look at falls as opportunities to increase exposure.

Brokerage recommendations 3rd June 2009

Brokerage recommendations 3rd June 2009

Buy ICICI Bank on any correction around Rs 650 for excellent long-term returns, says Prasad Kushe, technical analyst, on NDTV Profit. It has a target of Rs 5000-8000 in 5-7 years, he adds. The stock is currently trading at Rs 717, down 2.1% on the BSE.

Buy Reliance Communications with a target of Rs 430 and keep a stop loss of Rs 280, says Amarjeet Singh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 332, up 4% on the BSE.

Buy Essar Oil with a target of Rs 185-225-240 and keep a stop loss of Rs 145, says Prasad Kushe, technical analyst, on NDTV Profit. The stock is currently trading at Rs 181, up 8.4% on the BSE.

Buy JP Hydro with a target of Rs 93 and keep a stop loss of Rs 64, says Amarjeet Singh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 73, up 0.2% on the BSE.

Hold Alok Industries with a target of Rs 28-38-55, says Prasad Kushe, technical analyst, on NDTV Profit. The stock is currently trading at Rs 27, up 14% on the BSE.

Buy JP Associates with a target of Rs 380 and keep a stop loss of Rs 207, says Amarjeet Singh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 225, up 4% on the BSE.

Buy Sobha Developers with a target of Rs 250-290 and keep a stop loss of Rs 195, says Jatindra Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 224, up 10% on the BSE.

Buy FDC with a target of Rs 82-83 and keep a stop loss of Rs 38, says Amarjeet Singh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 46, up 3.2% on the BSE.

Buy Max India with a target of Rs 230, says Jatindra Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 204, up 4.2% on the BSE.

The market is now in a euphoric state and people need to book 10% profits every day, says Ashwani Gujral, technical analyst, on CNBC TV18. People should reduce their exposure as a dip could come any time now, he adds.

The market ends flat amid choppy trade and weak global cues. Midcaps and smallcaps outperform. Sensex closed at 14845, down 29 points (provisional) and Nifty is at 4520, down 4 points (provisional) from the previous close. CNX Midcap index was up 1.37% and BSE Smallcap index was up 1.99%. The market breadth was positive with advances at 888 against declines of 383 on the NSE.

Buy Aban Offshore with a target of Rs 1140 after which it can go to Rs 1450 and keep a stop loss of Rs 900, says Jatindra Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1110, up 15% on the BSE.

All bull markets normally see a correction so if there is a pause in this rally it would be healthy, says Prasad Kushe, technical analyst, on NDTV Profit. Sensex could correct to 14000 and Nifty to 4400-4300 where fresh buying would emerge, he says. Then the rally could go up again to 16150 on the Sensex and 4650 on the Nifty, he adds.

Buy REC International with a target of Rs 165 and stop loss of Rs 139, says Husseini Wadharia of Techno Shares, on CNBC Awaaz. The stock is currently trading at Rs 148, up 2.3% on the BSE.

Buy Chambal Fertilisers with a short-term target of Rs 76-80 and keep a stop loss of Rs 64, says Simi Bhaumik, technical analyst, on Zee Business. The stock is currently trading at Rs 67, down 2.3% on the BSE.

Buy GNFC with a target of Rs 112 and stop loss of Rs 94, says Husseini Wadharia of Techno Shares, on CNBC Awaaz. The stock is currently trading at Rs 99, up 1.3% on the BSE.

Buy Bartronics with a short-term target of Rs 168, medium-term target of Rs 175 and keep a stop loss of Rs 138, says Simi Bhaumik, technical analyst, on Zee Business. The stock is currently trading at Rs 158, up 1.7% on the BSE.

Buy Cipla with a target of Rs 245 and stop loss of Rs 217, says Husseini Wadharia of Techno Shares, on CNBC Awaaz. The stock is currently trading at Rs 229, up 3% on the BSE.

Buy TTML with a target of Rs 40-46 and keep a stop loss of Rs 32, says Simi Bhaumik, technical analyst, on Zee Business. The stock is currently trading at Rs 35, down 0.8% on the BSE.

Buy Tata Steel with support at 340, target of Rs 525-580 and stop loss of Rs 385, says Mandar Jamsandekar, technical analyst, on NDTV Profit. The stock is currently trading at Rs 482, up 1.8% on the BSE. » Send to friends

1:48 PM - Buy Tata Steel with a target of Rs 550 and stop loss of Rs 450, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 482, up 1.8% on the BSE.

Buy RPL on dips with a target of Rs 150 after which it will see fresh upside and keep a stop loss of Rs 130, says Simi Bhaumik, technical analyst, on Zee Business. The stock is currently trading at Rs 142, down 0.8% on the BSE.

Buy DLF with support at 380, target of Rs 422-555-580 and stop loss of Rs 320, says Mandar Jamsandekar, technical analyst, on NDTV Profit. The stock is currently trading at Rs 412, up 2% on the BSE.

Buy GMR Infra with a target of Rs 190-250 and stop loss of Rs 115, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 175, up 1.3% on the BSE.

The market has run ahead of itself and is a liquidity driven rally, says Aditya Samant of ING Financial Planning, on NDTV Profit. The current rally could end in sideways consolidation which would be healthier for the market, he adds.

Buy ICICI Bank with support at 650-700, target of Rs 760-792 and stop loss of Rs 640, says Mandar Jamsandekar, technical analyst, on NDTV Profit. The stock is currently trading at Rs 735, up 0.48% on the BSE.

Buy Rolta with a target of Rs 190-200 and stop loss of Rs 120, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 144, down 0.6% on the BSE.

Buy Ashok Leyland with support at 32-28, target of Rs 44 and stop loss of Rs 30, says Mandar Jamsandekar, technical analyst, on NDTV Profit. The stock is currently trading at Rs 37, up 1.8% on the BSE.

Buy Satyam around Rs 60 with a target of Rs 100-115 and stop loss of Rs 52, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 67, up 6.8% on the BSE.

Buy Godrej Consumer with a target of Rs 211 in the long term, says Hitesh Agarwal of Angel Broking on CNBC TV18. The stock is currently trading at Rs 183, up 1.13% on the BSE.

BHEL has bagged order worth Rs 375 crore from Oman, reports CNBC TV18. The stock is currently trading at Rs 2134, up 1.27% on the BSE.

Buy Everest Kanto around Rs 200 with a short-term target of Rs 250, medium-term target of Rs 300 and stop loss of Rs 180, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 215, up 5.7% on the BSE.

he market continues to look good and trade higher. Sensex is trading at 15001, up 127 points and Nifty is at 4561, up 36 points from the previous close. CNX Midcap index is up 2.10% and BSE Smallcap index is up 3.06%. The market breadth is positive with advances at 1062 against declines of 193 on the NSE.

Buy Mindtree with a target of Rs 540 and keep a stop loss of Rs 370, says Neera Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 462, up 3.5% on the BSE.

Buy CESC with a target of Rs 448 in 12 months, says Hitesh Agarwal of Angel Broking on CNBC TV18. The stock is currently trading at Rs 367, down 0.8% on the BSE.

There is a large liquidity push in emerging markets and a weak $ is keeping markets higher, says Amisha Vora of Prabhudas Liladhar on NDTV Profit. Market could see some profit booking after recent rally, she adds. Expect Sensex to breach 21000 on the upside by December 2010, she says.

Trying to make situation conducive for companies like FACT to improve production, says fertilizer secretary Atul Chaturvedi on CNBC TV18. Fertiliser subsidy to come down by Rs 60,000 crore this fiscal, he says. To save Rs 2500-3000 crore in FY10 on gas availability, he adds. Targetting re-opening of 4 plants, he says.

The momentum in the market to continue and take Nifty to 4700-4800, says Ambareesh Baliga of Karvy Stock Broking, on CNBC Awaaz. Not comfortable with valuations at current levels, he advises booking profits.

Buy Tata Tea with a target of Rs 790 and keep a stop loss of Rs 680, says Neera Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 767, up 6.3% on the BSE.

Buy Sasken Communications with a target of Rs 130, says Prakash Gaba, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 122, up 5% on the BSE.

Buy Hindustan Zinc with a target of Rs 710 and keep a stop loss of Rs 560, says Neera Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 663, up 2.42% on the BSE.

Sell Power Grid with a target of Rs 110 and keep a stop loss of Rs 122, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 120, up 0.8% on the BSE.

Buy Balrampur Chini with a target of Rs 110 and keep a stop loss of Rs 80, says Neera Jain of crnindia.com, on CNBC Awaaz. The stock is currently trading at Rs 94, up 1.02% on the BSE.

Buy Bajaj Holding with a target of Rs 500 and stop loss of Rs 440, says Anil Singhvi, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 495, up 9% on the BSE.

Buy Syndicate Bank with a target of Rs 100 and stop loss of Rs 76, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 83, up 2% on the BSE.

Market has run ahead of its fundamentals, says Ajay Srivastava of Dimensions Consulting, on CNBC TV18. He advises booking profits in IT and banking sectors.

Brokerage Recommendations 2 June 2009

Buy Adlabs on dips with a target of Rs 450-500 in 10-12 months, says Ashish Kukreja, market expert, on CNBC Awaaz. The stock is currently trading at Rs 388, down 1% on the BSE.

Sell DLF with a target of Rs 397 and keep a stop loss of Rs 427, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 404, down 2.4% on the BSE.

Hold Aban Offshore with a target of Rs 970 then it could go to Rs 1200-1300 and keep a stop loss of Rs 825, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 955, up 2.3% on the BSE.

Sell Power Grid with a target of Rs 110 and keep a stop loss of Rs 122, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 119, down 0.21% on the BSE.

Nifty has resistance at 4600-4680 and maintain a stop loss below 4570, says Rajat Bose, technical analyst, on CNBC TV18.

Sell SBI with a target of Rs 1795 and keep a stop loss of Rs 1855, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1901, up 1.1% on the BSE.

Hold DLF with a target of Rs 515-520 where one can exit, says Akshita Deshmukh, technical analyst, on Zee Business. The stock is currently trading at Rs 407, down 1.7% on the BSE.

Hold SAIL with a target of Rs 220-240 and keep a stop loss of Rs 150, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 178, up 1.84% on the BSE.

Hold Unitech with a target of Rs 115-120 where one can exit, says Akshita Deshmukh, technical analyst, on Zee Business. The stock is currently trading at Rs 89, down 2.6% on the BSE.

Hold Praj Industries with a target of Rs 140-145 and keep a stop loss of Rs 105, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 114, down 4% on the BSE.

Hold JK Cements with a target of Rs 125 and keep a stop loss of Rs 110, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 112, up 6% on the BSE.

Hold IRB Infra with a target of Rs 180-190 and keep a stop loss of Rs 135, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 140, down 6% on the BSE.

Hold JP Associates with a target of Rs 229 and then it could go to Rs 280 where one can exit, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 215, down 2.3% on the BSE.

Hold Neyveli Lignite with a target of Rs 160 where one can book 50% profits and keep a stop loss of Rs 125, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 138, down 3.9% on the BSE.

Hold Suzlon with a target of Rs 125 and keep a stop loss of Rs 90, says Neera Jain of crnindia.com on NDTV Profit. The stock is currently trading at Rs 110, down 1.7% on the BSE.

Buy NTPC with a target of Rs 240-250 and keep a stop loss of Rs 210, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 222, down 2.4% on the BSE.

Hold Bharti Airtel with a target of Rs 1000-1200 and keep a stop loss of Rs 750, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 799, down 0.7% on the BSE.

Buy BHEL, Reliance Capital and Suzlon and hold in portfolio for good long-term gains, says Gajendra Nagpal of Unicon Finance on NDTV Profit.

The Asian markets closed muted while European markets have opened in the negative. After a gap up start today our market is taking a pause. Sensex is trading at 14615, down 224 points and Nifty is at 4455, down 74 points from the previous close. CNX Midcap index is down 0.72% and BSE Smallcap index is down 0.43%. The market breadth is negative with advances at 455 against declines of 812 on the NSE.

Hold Ambuja Cements with a target of Rs 120, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 100, up 2.2% on the BSE.

Buy BHEL with a target of Rs 2770 where one can exit and keep a stop loss of Rs 1900, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2119, down 0.3% on the BSE.

Hold Voltas with a target of Rs 140, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 125, up 4.9% on the BSE.

The market had run up too fast and was getting ahead of fundamentals, says Gajendra Nagpal of Unicon Finance, on NDTV Profit. A correction in the market is welcome and post this correction the market will be on a firmer footing, he feels.

Hold Unitech with a target of Rs 116 where one can exit, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 92, up 0.5% on the BSE.

Hold Tata Motors with a target of Rs 360 where one can exit and keep a stop loss of Rs 325, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 346, up 2.4% on the BSE.

Buy ENIL with a target of Rs 240 and then it could see a fresh upmove and keep a stop loss of Rs 190, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 230, up 3% on the BSE.

Buy Balaji Telefims around Rs 98 with a short-term target of Rs 120, medium-term target of Rs 140 and stop loss of Rs 90, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 70, up 6.2% on the BSE.

Buy Reliance Communications with a target of Rs 350 and keep a stop loss of Rs 300, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 315, down 1.7% on the BSE.

Buy Ambuja Cement around Rs 98 with a short-term target of Rs 120, medium-term target of Rs 140 and stop loss of Rs 90, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 100, up 2.5% on the BSE.

Buy Bombay Dyeing with a target of Rs 385 and keep a stop loss of Rs 345, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 362, down 1.6% on the BSE.

Buy Maharashtra Seamless around Rs 265 with a short-term target of Rs 295, medium-term target of Rs 330 and stop loss of Rs 240, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 252, down 4.7% on the BSE.

Buy Strides Arcolab with a target of Rs 155 and keep a stop loss of Rs 135, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 131, down 5.6% on the BSE. » Send to friends

10:43 AM - Sell Unitech as it will see profit booking around Rs 95 and then it could go down to Rs 87, says Rajat Bose, technical analyst, on CNBC TV18. The stock is currently trading at Rs 93, up 0.9% on the BSE.

Buy Mahindra & Mahindra with a target of Rs 820, says Ashwani Gujral, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 733, up 3.3% on the BSE.

Buy Moser Baer with a target of Rs 125 and keep a stop loss of Rs 93, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 101, up 0.4% on the BSE.

Buy Voltas with a target of Rs 135, says Rajat Bose, technical analyst, on CNBC TV18. The stock is currently trading at Rs 125, up 6.18% on the BSE.

Buy Rolta with a target of Rs 155 and keep a stop loss of Rs 120, says Rajesh Jain of SMC Global Securities on CNBC Awaaz. The stock is currently trading at Rs 133, up 2.1% on the BSE.

Buy Opto Circuits with a target of Rs 200 and stop loss of Rs 175, says a technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 186, up 5.1% on the BSE.

BSE / NSE Shares analysis 2nd June 2009

BSE / NSE Shares analysis

It was a buoyant start for the market this morning with strong global cues buoying up sentiment and lifting stock prices up sharply. Due to heavy profit taking across the board, the Sensex plunged sharply into the red in afternoon trade.

Tata Steel shot up by nearly 11% today. Tata Motors, HDFC, Sterlite, SBI, ICICI Bank, M&M, Grasim and L&T also ended on a firm note. ACC, Ranbaxy, Reliance Infra, Tata Power, DLF, HDFC Bank, Wipro, NTPC, JP Associates and ONGC declined sharply.

Siemens, Axis Bank, Suzlon Energy, Idea, PNB, RPower, Nalco and Tata Comm ended with sharp losses. HCL Tech, SAIL, ABB, Cairn India, Cipla, Ambuja Cements and Hero Honda closed with notable gains.

As midcap and smallcap stocks bounced back after a weak spell, the market breadth turned positive in afternoon trade.

One can accumulate low priced bank stocks UCO Bank, Vijaya Bank, Syndicate Bank and Dena Bank for long term. Among other bank stocks, Federal Bank, Bank of India, BOB and Canara Bank look good. One can go in for these stocks at declines.

Rolta India (Rs 145) has come a long way from a dismal low of Rs 40.70 it had touched on March 12 this year. The stock can rise to Rs 170 - 180 where it is likely to face some strong resistance. One can exit the counter there and re-enter later at dips. For now, medium and long term investors can place a stop loss at Rs 110 - 115.

Bajaj Hindustan has announced that it has repurchased (buy-back) FCCBs aggregating to face value of US$ 17.928 million, for cash at a discount. After purchase and cancellation of FCCBs of face value US$ 17.928 million, the total outstanding FCCBs stands at 101.572 million.
The stock is up 4.3% at Rs 156 now. One looking at long term can stay invested at the counter.

JP Associates (cmp Rs 212) is likely to face strong resistance at Rs 225- 230 levels. One looking at short term can exit the counter at those levels and re-enter later at sharp declines. The stock has good support at Rs 140 - 145 and long term investors can hold the stock with a stop loss there.

Voltas (Rs 126) is near a crucial resistance level. The stock can move on to Rs 135 but will have to make a decisive breakout there to move up further. On the downside, it has support at 90 levels and long term investors can have a stop loss there.

Power Grid Corporation, Areva, PFC and Suzlon Energy can be picked up at declines in a staggered way if one is looking at long term. There may be a few weak spells for these stocks over the next few weeks, but their long term prospects remain fairly bright.

Bharti Airtel (Rs 800) can be retained for long term. One can consider fresh buying in the stock at Rs 730 - 740 levels. The stock is likely to face some resistance at Rs 850 and strong breakout there can result in a surge to Rs 975 or even higher.

LIC Housing Finance Ltd has informed the Board of Directors of the Company at its meeting held yesterday, had approved further issue of 1,00,00,000 equity shares of Rs 10/- each through placement with Qualified Institutional Investors (QIP). A separate item in respect of the same will be included in the Notice of 20th Annual General Meeting to be held on July 21, 2009 for approval of the Members.

One willing to wait long term can pick up bank and capital goods stocks at sharp declines. Infrastructure stocks can also give good returns. One can try GMR Infra, IVRCL Infrastructure, Gammon India and PBA Infrastructure at dips.


Though economic indicators suggest a recovery is on its way, some institutions and high net worth operators may choose to book profits and this could result in a big correction of sorts.

Realty stocks are likely to face some pressure. With the banks not willing to reduce interest rates any significantly, demand for homes may not pick up sharply in the near term. There may be a surge in demand, but then, it is not going to be sharp. And, not all realtors are likely to see a pick up in demand. Hence, one would do well to stay cautious and remain extremely selective with regard to fresh exposure.

Market Outlook

The Sensex is likely to breach the magical 15,000 mark this morning with strong global cues pointing to a positive start. There may be some profit taking later on, but the undertone is likely to remain quite firm today. Some volatility is not ruled out.

Sectors to Watch

The sharp rise in crude oil prices is likely to result in some weakness in the oil space today. Automobile stocks may also find the going somewhat tough amid worries of a possible hike in fuel prices. Cement stocks will take direction from May shipment figures.

Technology, metal and capital goods stocks are likely to attract attention. Bank and realty stocks may move up but are likely to face stiff resistance at higher levels. Buying is expected to be stock specific in FMCG and pharma sectors.

Scrip Watch

HDIL, which moved up by over 8% in the previous session, is likely to remain in focus following the company entering in to a joint venture with Mumbai Metropolitan Region Development Authority for development of 525 acre of land under Rental housing scheme at Virar. As per the arrangement, HDIL will develop approximately 13 million square feet for rental space and hand it over to MMRDA free of cost and remaining approximately 39 million of square feet space will be available to the Company for free sale.

State Bank of India has announced that it has been allotted 437,400 shares in Nepal SBI (a Nepal based joint venture bank in which SBI has a shareholding of 50%) in a divestment of stake by Agricultural Development Bank, Nepal conducted through a competitive bid process. The total shareholding of State Bark of India in Nepal SBI will reach 55%, after transfer of these shares to SBI, with due necessary regulatory approvals/clearances.

Orbit Corporation Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 03, 2009, to consider proposal for fund raising through Qualified Institutions Placement to Qualified Institutional Buyers.

PSU oil marketing major Hindustan Petroleum Corporation Limited will announced its quarterly results today.

Macro and Market Factors

The strong close on Wall Street on the back of some better-than-expected economic data and the firm trend on the Asian bourses will keep the bulls pretty busy at the Indian ring this morning.

However, for any sharp upmove to sustain, institutional investors will have to stay tuned, and more importantly, keep picking up blue chips.

Closing bell 2nd June 2009

Closing bell 2nd June 2009

Buying at lower levels during the second half of today’s trading session led the markets to recover their losses and end the day on a flat note. The BSE-Sensex ended higher by around 30 points, while the NSE-Nifty closed lower by about 5 points. Stocks from the mid-cap and small-cap spaces ended the day on a positive note, recording gains of 0.8% and 0.9% respectively. Buying activity was witnessed in stocks from the metal, consumer durables and automobile spaces, while stocks from realty and power space led the pack of losers.

Other Asian markets ended the day on a mixed note. The European indices are currently trading mixed as well. Rupee was trading at 47.1 against the US dollar at the time of writing.

Two-wheeler stocks ended the day on a firm note led by Bajaj Auto and Hero Honda. Two-wheeler major, Bajaj Auto announced its sales volumes for the month of May 2009. The company reported an 8% YoY drop in overall motorcycle volumes as compared to the same period last year. In fact Bajaj Auto’s exports, which grew by nearly 25% YoY for FY09, witnessed a 3% YoY drop in volumes during the month of May. The overall decline in volumes is a surprising development if one compares it to Hero Honda’s 22% YoY growth in volumes for the month of May. A reason for such disparity may be due to the former’s focus on the already saturated urban areas.

Telecom stocks ended the day on a weak note led by Idea and Bharti Airtel. As per data released by the TRAI, the number of mobile subscribers in India crossed the 400 m mark during the month of April 2009. During the month, there were nearly 11.9 m additions. However, this figure is lower than the previous month’s figure of 15.6 m. While this may indicate a slowdown in mobile subscriber additions, it may be noted that March, being the last month of the fiscal, the telecom operators tend to become a bit aggressive on their marketing activities. In addition, the additions also seem to have slowed down on account of withdrawal of special plans and deals. As such, on whether the Indian telecom market is facing a slowdown can be actually witnessed in the coming months. It may be noted that the department of telecom has set a target of 500 m subscribers by 2010.

Improved production levels have raised India’s infrastructure sector output by 4.3% YoY for the month of April as compared to the same month last year. Growth in production levels in core sectors such as cement, finished steel, coal and electricity, was 2.7% in the same month last year and 5.9% in the year before. However, crude oil production remained in the negative as it fell by 3.1% YoY. Last year it recorded a growth of 1%. It may be noted that the infrastructure sector accounts for nearly 27% of India's industrial output.

The Indian markets continued to trade in the red on account of sustained selling activity witnessed during the previous two hours of trade. Currently, stocks from the cement, power and realty sectors are leading the pack of losers, while select stocks from the metal, software and auto sectors are trading firm. The overall advance to decline ratio is poised at 1.2 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading weak, down by around 130 points and 45 points respectively. However, the BSE-Midcap and BSE-Smallcap indices are trading higher by around 0.2% and 0.4% respectively. The rupee is trading at 47.17 to the dollar.

Pharma stocks are trading mixed. While Sun Pharma and Ranbaxy are trading lower, Lupin and Wockhardt are trading higher. Sun Pharma announced its FY09 results recently. Net sales grew by 27% YoY led by the domestic formulations and export bulk businesses during the fiscal. Operating margins contracted by 2.6% YoY to 43.6% on account of rise in staff costs and other expenditure (as percentage of sales). Net profits grew by 22% YoY, lower than the topline growth on account of the contraction in operating margins and higher depreciation charges and tax expenses during the fiscal. The Board recommended a dividend of Rs 13.75 per share for FY09. Sun Pharma and its subsidiary Caraco together have ANDAs (abbreviated new drug application) approvals for 71 products. It filed a total of 37 ANDAs in FY09. Thus, ANDAs representing 108 products are awaiting USFDA approval, including 7 tentative approvals.

Real Estate stocks are trading mixed. While DLF and HCC are trading lower, IVRCL Infra is trading higher. As per a leading business daily, promoters of DLF are planning to buy out DE Shaw’s stake in the group firm DLF Assets (DAL). D E Shaw had invested around US$ 400 m in DAL through convertible preference shares in 2007. It may be noted that DAL is a primary buyer of properties constructed by DLF. DE Shaw had a call option on the investments due in May, which has been exercised by it. The promoters sold around 9.9% stake in DLF in order to raise US$ 760 m to pay off DE Shaw and retire some debt. As per the reports, with the real estate markets reviving, DE Shaw may stay invested so as to avail higher valuations on its investments while on the other hand promoters are likely to pay back DE Shaw and buyout the stake.

The Indian markets slipped into the red during the previous two hours of trade as profit booking was witnessed at higher levels among the index heavyweights. Currently, stocks from the banking, power and energy sectors are leading the pack of losers, while select auto and software stocks are trading firm. The overall advance to decline ratio is poised at 1.1 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading weak, down by around 110 points and 50 points respectively. The BSE-Midcap and BSE-Smallcap are also trading weak, lower by around 0.4% and 0.3% respectively. The rupee is trading at 47.17 to the dollar.

As per a leading business daily, Ashok Leyland plans to develop compressed natural gas (CNG) based heavy vehicles. It may be noted that the company has pioneered the use of CNG technology and it currently supplies CNG buses to various Indian cities. Fuel costs comprise a considerably higher portion of transportation costs as basic fuel prices like petrol and diesel have zoomed during the last decade. Further, the use of CNG fuel lowers fuel costs per kilometer as compared to diesel. Given the assurance of CNG fuel as Reliance’s KG basin has started to pump out natural gas, the supply of gas will not be an issue. The stock of Ashok Leyland is trading firm along with Tata Motors.

Banking stocks are trading weak led by HDFC Bank, Axis Bank and SBI. Axis Bank plans to raise Rs 30 bn through the issue of a debt instrument in the domestic and overseas markets. As such, the instrument would comprise Rs 5 bn of Tier I capital, while the rest will comprise of Tier II capital. The bank plans to utilise these funds for its future growth in the loan book and to expand its branch network. The bank plans to add 200 branches during FY10, which is considerably higher compared to 165 it added during FY09. It may be noted that during FY09 the bank’s advances grew by 37% YoY and capital adequacy ratio stood comfortably at 13.7%.

BSE / NSE Shares analysis 1st June 2009

BSE / NSE Shares analysis 1st June 2009

The board of directors of AXIS Bank has approved borrowing / raising funds to the extent of Rs 3,000 crores in FY 2009-10 by issue of Debt instruments. The bank plans to raise Rs 500 crore or equivalent amount in Indian / foreign currency by issue of debt instruments in domestic and / or overseas market, eligible for inclusion in tier I capital and Rs 2,500 crore or equivalent amount in Indian / foreign currency by issue of debt instruments in domestic and / or overseas market, eligible for inclusion in tier II capital.

TVS Motor has reported a decent growth in vehicles sales in May 2009. TVS Motor Company's domestic motorcycle sales clocked a 3% growth in May 2009 over May 2008. Total motorcycle sales, however, slipped 2.23% to 53,495 units in May 2009 over May 2008. The stock is trading at Rs 46.30 at present. One looking at long term can stay invested in the stock and pick up more of it at declines.

Glenmark Pharmaceuticals has received ANDA approval from U.S. FDA for Hydralazine Hydrochloride Tablets. The product has been approved in the active strengths of 10 mg, 50 mg and 100 mg as the AB rated generic Pliva's equivalent Hydralzine Hydrochloride. The tablets are indicated for the treatment of essential hypertension.

Parsvnath Developers Limited has got the approval for its 'Parsvnath La Tropicana' project. The Premium luxury project in the heart of Delhi, is estimated to be worth arond Rs 1300 crore.
The Parsvanath Developers stock is up 1.25% at Rs 98 now. One looking at long term can try this stock at declines. Last message received on 6/1/2009 at 11:19 AM balakumar subramanian:

Religare Enterprises and Swiss Reinsurance Company have signed a non-binding agreement to develop a joint venture health insurance company in India. The proposed JV will further strengthen Religare's diversified portfolio and bolster it presence in the insurance domain.

One seeing some good profits in Cairn India (cmp Rs 248) can book some at current levels. The stock is likely to face some resistance at these levels. Though a further rise is not ruled out, some profit taking here is not a bad idea. The stock is a good buy at Rs 220 - 225 levels.

Hero Honda Motors has reported a sharp 22.5% jump in vehicle sales for the month of May 2009.
Vehicle sales rose 22.5% to 3.82 lakh units in May 2009 over May 2008. The company plans to launch a 100 cubic centimetre (CC) motorcycle in the price band of Rs. 40,000-45,000. The bike in the entry-level category will be launched by the end of the current fiscal. At Rs 1353, the stock is up by nearly 1.25% now. Long term investors can continue to hold the stock.

One looking for some solid gains over a short to medium term can try Suzlon Energy (cmp Rs 106) at Rs 95 levels. The stock is likely to face some resistance near Rs 115 but a strong breakout there can result in a surge to Rs 130 - 135. One looking at long term can have a stop loss at Rs 70 - 75 levels.

RComm, DLF, Sun Pharma, HDFC, Tata Steel and ACC are up y 3% - 7%.
Reliance Infra, ICICI Bank, Tata Motors, Sterlite, Bharti Airtel, ITC, Grasim, L&T, BHEL, Tata Power and Ranbaxy have also risen sharply. RIL, Infosys and Wipro have also posted strong gains.

Market Outlook

The market is expected to open on a firm note and remain positive for a major part of the session. Some profit taking is likely at higher levels.

Sector Watch

Realty, bank and automobile stocks are likely to attract attention. IT stocks are expected to rebound and regain some lost ground. Capital goods and metal stocks may edge higher. A fair amout of buying is seen in infrastructure space.

Scrip Watch

Sun Pharmaceutical may attract attention. The pharma major has posted a rise of 22.24% in net profit after minority interest of Rs 18,177.30 million for the year ended Mar. 31, 2009 as compared to Rs 14,869 million for the year ended Mar. 31, 2008.

Unitech is likely to be in focus on reports that the company is looking at repaying about Rs 20 billion of its debt and bring it below Rs 60 billion level by the end of this fiscal.

Macro and Market Factors

The Wall Street closed on a firm note on Friday as investor sentiment remained fairly buoyant. Asian markets are trading firm with an expansion in Chinese manufacturing for a third month raising hopes of a global economic recovery.

Strong GDP numbers has sent stock prices soaring higher on the Indian bourses last week and the mood is likely to remain quite upbeat this morning with strong global cues aiding the sentiment further.

Closing Bell 1st June 2009

Closing Bell 1st June 2009

Auto stocks ended the day on a firm note led by M&M, TVS Motors and Bajaj Auto. Auto sales numbers for the month of May 2009 have begun to trickle in. Two-wheeler major, Hero Honda announced a 23% YoY increase in volumes as compared to last year. On the other hand, its peer group company TVS Motors announced a 5% YoY rise in vehicle sales during the month. This rise in volumes was aided by higher domestic motorcycle sales and moped sales. However, exports for the month slipped by 21% YoY. For FY10, the company’s management has indicated that it expects the volumes to increase by 10% YoY. Further, India’s largest passenger car maker Maruti Suzuki, recorded a 16% YoY growth in volumes during the month of May 2009. This was largely aided by higher export sales, which grew by 87% YoY, while its domestic sales grew by 10% YoY.

Pharma stocks ended the day on a firm note led by Panacea Biotec, Wockhardt and Aurobindo Pharma. Glenmark Pharmaceuticals has received the final approval from drug regulator US FDA for marketing its anti-hypertension drug. As per the company, it will immediately commence marketing and shipping its generic in the US market. As per certain estimates, the market size of such hypertension drugs is poised to be around US$ 55 m (Rs 2.8 bn) as of March 2009.

The global economic slowdown has taken its toll on Indian exports, which for the month of April 2009 fell by almost one-third as compared to the same month last year. It may be noted that exports have now fallen for nearly 7 months in a row. During the month of April 2009, the figure stood at US$ 10.7 bn as compared to US$ 16.1 bn last year. During FY09, exports grew by a mere 3.4% to almost US$ 169 bn. On the other hand, the slowdown in domestic markets has also lowered imports by nearly 36% YoY during the same period. Imports on the other hand have dropped mainly on account of a 58% YoY reduction in oil import.

The BSE-Sensex and the NSE-Nifty are trading higher, up by around 180 points and 70 points respectively. The BSE-Midcap and BSE-Smallcap are also trading higher, up by around 2.7% and 3.1% respectively. The rupee is trading at 46.95 to the dollar.

Banking stocks are trading mixed. While SBI and Yes Bank are trading higher, Axis Bank and PNB are trading lower. As per a leading business daily, SBI is planning to increase its number of deposit holders in rural areas in order to raise more deposits at lower interest rates. It aims to add around 40 m rural deposit accounts by FY11. It may be noted that the bank has currently around 50 m accounts on the deposits side, while 10 m accounts on the advances side in the rural areas. It also plans to increase its CASA to 45% in FY10 as against 39% during FY09. Further, it plans to cover additional 50,000 villages during the current fiscal. In fact it has tied up with Indian Post to mobilize deposits and loans in rural areas. This is a positive move by the bank as it would enable it to mobilize low cost deposits from the rural areas and improve its net interest income margins which stood at 2.9% in FY09.

Steel stocks are trading higher led by Tata Steel and JSW Steel. As per a leading business daily, Tata Steel got approval from its lenders to reset the terms and conditions of covenants. Covenants are agreements between a company and its lenders that stipulate the condition under which loan is granted. It may be noted that Tata Steel had raised debt of £ 3.7 bn for the acquisition of Corus in 2007. The revised covenant package does not involve any additional finance from the lenders or rescheduling of debt servicing commitments. However, the company will not have to pay any extra interest cost for the remaining tenure of the loan. Also, as part of the agreement reached with lenders, earnings related covenants will largely be suspended till FY10 and would resume from FY11 with significantly higher flexibility as compared with the original covenants. Tata Steel will infuse £ 425 m into Tata Steel UK in a phased manner, out of which £ 200 m would be used to prepay debt at Corus in order to deleverage its balance sheet.

Though trading in the green, the Indian markets have pared some of their early gains during the previous two hours of trade on the back of selling pressure among the index heavy weights. Currently, stocks from the realty, metals and IT sectors are leading the pack of gainers, while select banking and telecom stocks are trading weak. The overall advance to decline ratio is poised at 3.6 to 1 on the BSE.

Power stocks are trading firm led by NTPC, Power Grid and Reliance Power. As per a leading business daily, NTPC is likely to acquire coal mines abroad. For this, the company has identified two to three coal blocks in Mozambique and Indonesia, for which due diligence is currently being done. Although, the company has recently signed a 20 years long-term Fuel Supply Agreement with Coal India to assure supply of coal for a portion of its capacity expansion, there is still a shortfall of coal supply of around 18 m tonnes during the current fiscal which is likely to be met through imports. It may be noted that NTPC has outlined massive capacity expansion plans with 22,000 MW greenfield projects by the end of the 11th five year plan period that would push up the coal requirements for NTPC going forward.

As per a leading business daily, M&M has launched a major revamp of its tractor business as it looks to sharpen its product line-up and protect its market share. The tractors from Punjab Tractor, which it acquired recently, will constitute the lower end category, while that manufactured by M&M will be slotted in the premium category. Both the categories will have different distribution and marketing channels. However, the back-end operations like sourcing of raw materials, manufacturing and product development will be the same. The company currently commands a market share of 41% in the tractor business. The stock of M&M is currently trading firm on the bourses.

Backed by strong global cues, the Indian markets are trading in the positive for the fourth session in a row. All the stocks on the NSE Nifty are trading firm with engineering, telecom and energy stocks leading the pack of gainers. The overall advance to decline ratio is poised at 6.9 to 1 on the NSE. As regards global markets, the US markets ended on a high note. For the month of May, Dow jumped 3.8%, while the S&P 500 rose 5.2% and the Nasdaq advanced 3.6%, their biggest three-month run since 2007. The European markets too closed higher last Friday. The Asian indices are currently trading firm.

Colgate announced its FY09 results last Friday. The topline saw a growth of more than 15% YoY during the quarter as well as the full year. Its market share improved to 52.2% (Jan - March 09) from 48.2% last year. Colgate outpaced industry growth, both in the toothpaste and the toothbrush category during 2008. While the toothpaste industry grew 14.5%, Colgate registered a growth of 18%. In the case of toothbrush, it saw a growth of 17.3% as against the industry growth of 7.6%. Operating margins during 4QFY09 improved by 3.9% YoY. For FY09, the margins improved to 20%, up 0.7% YoY. Excluding extraordinary items, the bottomline grew by 27% YoY during FY09. It paid a total dividend of Rs 15 per share for the year (dividend yield of 3.2%). With the penetration level of toothpaste being as low as 57% and the per capita level being 108 gm/year which is less than its Asian peers, there is huge scope for the company to grow. While the urban areas are expected to drive consumption, rural areas would drive penetration. FMCG stocks are trading firm.

Auto stocks have started the day’s proceedings on a firm note. As per a leading business daily, car major Maruti is expected to see an increase of 8% to 10% in the domestic car sales during the month of May backed by strong rural demand and buoyant exports. As per the company, exports have jumped more than 50% YoY during last month, driven by improved European demand. The rural market sales have increased to 9% of its total sales from about 3.5% earlier on account of concerted push in these regions by the company. This would be the fifth consecutive month when Maruti would clock over 70,000 units in sales. In April, its domestic sales grew 9% YoY and overall numbers (including exports) were up 15% YoY. Fiscal stimulus measures undertaken by the government as well as lowering of interest rates by some key banks has aided higher demand.

Brokerage Recommendations 28th May 2009

Brokerage Recommendations 28th May 2009

Exit McLeod Russel on any rally, says Rajesh Tambe of Sunchan Securities on Zee Business. The stock is at Rs 96.30, down 2.4% on the BSE.

Hold Eleconn Engineering with stop loss of Rs 75, says Hormuz Maloo, technical analyst with Geojit Financial Services, on CNBC Awaaz. The stock is at Rs 87.30, up 6.1% on the BSE.

Buy Bharti Airtel with target of Rs 860, says Nishant Jain of Tradeswift on CNBC Awaaz. Keep stop loss of Rs 760, he adds. The stock is at Rs 795.20, up 3.4% on the BSE.

Stay long in JP Associates with target of Rs 225, says Ashwani Gujral, technical analyst, on CNBC TV18, as market closing strategy. Keep stop loss of Rs 180, he adds. The stock is currently trading at Rs 192.35, up 1.2% on the BSE.

Buy Bharti Airtel with target of Rs 845, says Prakash Gaba, technical analyst, on CNBC Awaaz, as market closing strategy. Keep stop loss of Rs 785, he adds. The stock is currently trading at Rs 795.25, up 3.4% on the BSE.

Stay long in the Nifty with target of 4420 and stop loss of 4304, says Rajat Bose, technical analyst, on CNBC Awaaz, as market closing strategy.

Exit TVS Motors at Rs 50 and instead buy Tata Motors on dips, says Rajesh Tambe of Sunchan Securities on Zee Business. The stock is currently trading at Rs 45.30, up 2.8% on the BSE.

Hold Kalpataru Power which is a good stock to be invested in, says a market expert of Karvy Broking on CNBC Awaaz. The stock is currently trading at Rs 701.60, up 0.6% on the BSE.

Hold BL Kashyap with stop loss of Rs 341, says Hormuz Maloo of Geojit BNP Paribas, on CNBC Awaaz. The stock is currently trading at Rs 398, up 5.2% on the BSE.

Buy Reliance Capital with a target of Rs 1040, says Nishant Jain of Tradeswift on CNBC Awaaz. Keep stop loss of Rs 910, he adds. The stock is currently trading at Rs 940, up 2.2% on the BSE.

Hold Purvankara Projects with stop loss of Rs 90, says Hormuz Maloo of Geojit BNP Paribas, on CNBC Awaaz. The stock is currently trading at Rs 102, up 4.96% on the BSE.

The market will see volatility and weakness towards late afternoon amid immense selling pressure because of F&O expiry, says Jagdish Thakkar of Fortune Fiscal on Zee Business.

Buy ETC Network with target of Rs 150, says Nishant Jain of Tradeswift on CNBC Awaaz. Keep stop loss of Rs 94, he adds. The stock is currently trading at Rs 108, up 0.6% on the BSE.

Quantitative easing by central banks across the world has fuelled this rally and further policy action would pump in a lot of money into the economy, says Manoj Pradhan of Morgan Stanley on CNBC TV18. Liquidity was at the crux of support for asset classes and India could be one of the beneficiaries in this supply of liquidity and increase in risk appetite, he added.

The market is trading choppy amid some selling pressure. Sensex is trading at 14340, up 230 points from its previous close, and Nifty is at 4341, up 65 points. CNX Midcap index is up 0.8% and BSE Smallcap index is up 0.8%. The market breadth is positive with advances at 767 against declines of 492 on the NSE.

Buy Suzlon Energy above Rs 95 with target of Rs 120, says Nishant Jain of Tradeswift on CNBC Awaaz. Keep stop loss of Rs 80, he adds. The stock is currently trading at Rs 91.85, up 2.3% on the BSE.

Hold RNRL with target of Rs 105, says Kiran Jadhav, technical analyst, on NDTV Profit. Keep trailing stop loss of Rs 70, he adds. It has good support at Rs 75, he says. The stock is currently trading at Rs 81.10, down 1% on the BSE.

Buy Cairn India, Tata Elexi, Kale Consultants and UTV Software for long-term gains, says Salil Sharma of Kapoor & Sharma Company on Zee Business.

HEM Securities maintains a buy call on Adlabs Films with target of Rs 362, reports CNBC Awaaz. Keep stop loss of Rs 315, it adds. The stock is currently trading at Rs 332, down 0.2% on the BSE.

Hold Essar Oil with target of Rs 200, says PK Agarwal of Bonanza Portfolio on Zee Business. Keep stop loss of Rs 175, he adds. The stock is currently trading at Rs 177.50, down 0.5% on the BSE.

Book profits in cement stocks on every rally, says Hitesh Agarwal of Angel Broking on CNBC Awaaz.

Exit Parsvnath Developers and instead invest in telecom, engineering services and banking stocks, says Rajesh Tambe of Sunchan Securities on Zee Business. The stock is currently trading at Rs 93.30, down 2.2% on the BSE.

Hold NIIT with target of Rs 80-85, says Kiran Jadhav, technical analyst, on NDTV Profit. Keep trailing stop loss of Rs 45, he adds. It has good support at Rs 75, he says. The stock is currently trading at Rs 50.10, down 1.3% on the BSE.

The market continues to trade firm amid volatility on settlement day. Earlier, the European markets opened weak and are now trading quiet. Sensex is trading at 14306, up 196 points from its previous close, and Nifty is at 4335, up 59 points. CNX Midcap index is up 0.6% and BSE Smallcap index is up 0.7%. The market breadth is positive with advances at 750 against declines of 500 on the NSE.

Hold Jindal Steel & Power with target of Rs 2250, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 1950, he adds. The stock is currently trading at Rs 2099, up 0.9% on the BSE.

Hold Aurobindo Pharma with stop loss of Rs 325, says PK Agarwal of Bonanza Portfolio on Zee Business. Medium-to-long term target for this stock is Rs 500, he adds. The stock is currently trading at Rs 379, down 1.2% on the BSE.

Hold Reliance Communications with stop loss of Rs 290, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 310 crossing which it can go up to Rs 340, he adds. The stock is currently trading at Rs 309, up 1.6% on the BSE.

Hold Idea Cellular with target of Rs 85-88, says Hemant Thukral of Asian Market Securities on CNBC TV18. The stock is currently trading at Rs 77.65, down 1.5% on the BSE.

Hold Videocon with target of Rs 190-200, says PK Agarwal of Bonanza Portfolio on Zee Business. Keep stop loss of Rs 140, he adds. The stock is currently trading at Rs 165.05, down 2.4% on the BSE.

Hold Cairn India with medium-term target of Rs 240, says Rahul Mohinder, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 205, he adds. The stock is currently trading at Rs 219.65, up 0.1% on the BSE.

The market at noon appears to be coming off the day's low very marginally, ahead of the F&O settlement today. Sensex is trading at 14256, up 146 points from its previous close, and Nifty is at 4316, up 40 points. CNX Midcap index is up 0.1% and BSE Smallcap index is up 0.1%. The market breadth is positive with advances at 644 against declines of 582 on the NSE.

WPI for all commodities is up 0.1% at 232.2(WoW), reports NDTV Profit. Primary Articles Index is up marginally, Manufactured Products Index up 0.1% at 203.5(WoW) and Fuel Index is up 0.1%(WoW), it adds.

The inflation figure for the week ended May 16 has been announced at 0.61%, unchanged from last week, reports NDTV Profit.

Hold DLF with target of Rs 400-420, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 369, up 1% on the BSE.

Hold HDFC Bank with short-term target of Rs 1500, says PK Agarwal of Bonanza Portfolio on Zee Business. Keep stop loss of Rs 1315, he adds. The stock is currently trading at Rs 1401, down 0.5% on the BSE.

Both traders and investors can buy Idea Cellular on dips, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 77.40, down 1.8% on the BSE.



Hold Arvind with medium-term target of Rs 37-38, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 30.55, down 3.9% on the BSE.

Buy IVRCL at Rs 200-225, says Hitesh Agarwal of Angel Broking on CNBC Awaaz. The stock is currently trading at Rs 288, down 0.2% on the BSE.



Hold Reliance Power with stop loss of Rs 172, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 185 crossing which it can go up to Rs 235, he adds. The stock is currently trading at Rs 179.05, up 0.3% on the BSE.

Buy JP Associates with target of Rs 207-233, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 176, he adds. The stock is currently trading at Rs 190.50, up 0.1% on the BSE.

An hour into opening, the market is trading steady, ahead of the F&O settlement today. Sensex is trading at 14272, up 163 points from its previous close, and Nifty is at 4323, up 47 points. CNX Midcap index is up 0.6% and BSE Smallcap index is up 0.9%. The market breadth is positive with advances at 779 against declines of 413 on the NSE.

Buy Suzlon Energy with trailing stop loss of Rs 84, says Ramesh Arora, technical analyst, on Zee Business. It has resistance at Rs 90-95 crossing which it can go up to Rs 107, he adds. The stock is currently trading at Rs 92.10, up 2.6% on the BSE.

Hold Tata Motors with short-term target of Rs 360, says Rahul Mohinder, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 327, he adds. The stock is currently trading at Rs 343.90, up 0.1% on the BSE.

Book profits in SAIL, says Hitesh Agarwal of Angel Broking on CNBC Awaaz. The stock is currently trading at Rs 154.60, up 0.3% on the BSE.

I expect the Nifty to expire at 4220-4330 with higher chances of an expiry at the lower end of this band as there may be lack of buying today, says Yogesh Radke of Edelweiss Securities on CNBC TV18. He adds that telecom stocks have seen strong rollovers, while banks have been weak. He sees support for the Nifty at 3800 and 4000 in June series and believes that IVs (implied volatility) are likely to remain low.

Buy TCS with target of Rs 690, says Ashwani Gujral, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 625, he adds. The stock is currently trading at Rs 651.10, up 0.9% on the BSE.

Buy Alkali Metals with intra-day target of Rs 350, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 310, he adds. The stock is currently trading at Rs 330, up 3.1% on the BSE.

Buy GSPL at Rs 57 with target of Rs 62, says VK Sharma of Anagram Stock Broking on CNBC TV18. Keep stop loss of Rs 55.50, he adds. The stock is currently trading at Rs 60.05, up 3.8% on the BSE.

Buy Sintex Industries with intra-day target of Rs 235, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 222, he adds. The stock is currently trading at Rs 226, up 0.1% on the BSE.

Buy Idea Cellular with intra-day target of Rs 85, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 75, he adds. The stock is currently trading at Rs 77.20, down 2.1% on the BSE.

Buy Infosys at Rs 1588 with target of Rs 1610, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 1555, she adds. The stock is currently trading at Rs 1596.25, up 0.7% on the BSE.

The market opens on a flat note in the steps of mixed global cues. Today is the day of F&O expiry. Most Asian markets are closed today. Sensex is trading at 14115, up 5 points from its previous close, and Nifty is at 4274, down 2 points. CNX Midcap index is up 0.6% and BSE Smallcap index is up 1%. The market breadth is positive with advances at 562 against declines of 114 on the NSE.

Buy Escorts with intra-day target of Rs 66, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 61, he adds. The stock is at Rs 62.90, up 7.2% on the BSE.

Buy JP Associates at Rs 190 with target of Rs 195, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 183, she adds. The stock is at Rs 190.30, up 6.6% on the BSE.

BSE / NSE Shares Analysis for 28th May 2009

BSE / NSE Shares Analysis for 28th May 2009

Automobile stocks Tata Motors, Maruti Suzuki and Hero Honda can be bought at sharp declines.
These stocks may remain a bit slippery in the near term, but their long term prospects remain quite bright. One should be prepared to wait for 2 - 3 years for fairly strong gains on investments in these stocks.

Realty stocks may see some upside in the next 3 - 6 months. However, one has to remain quite selective with regard to fresh buying in this space. Shares of companies with a proven track record should be identified for modest exposure at current levels.

Praj Industries, Thermax, Areva and Punj Lloyd are stocks for long term. These stock can see some upside in the near run, but are likely to go through some weak spells as well. One holding these stocks with a long term plan can stay invested and look at buying more in small quantities at sharp dips. Last message received on 5/28 at 2:45 PM balakumar subramanian:

One looking at long term can buy Syndicate Bank (Rs 79.70) at 5 - 10% down from current levels. One holding the stock can stay invested with a stop loss around Rs 60 - 63 levels.
UCO Bank, Andhra Bank, Indian Bank, IOB and Union Bank of India can also be picked up at sharp falls.

JSW Steel has vaulted over 12% to Rs 580 today on reports the company is planning to raise around $ 100 billion to fund its expansion and reduce debt. In a communication to BSE, the company has stated that it plans to raise $1 billion (Rs 4,767 crore) to part finance the company's capex and for other general corporate purposes including reducing the leverage. They will raise the additional long term resources through issuance of qualified institutional placement, foreign currency convertible bonds, GDRs, ADRs, warrants or equity shares.

PSU steel maker SAIL has posted a net profit of Rs 14866.80 million for the quarter ended March 31, 2009 as compared to Rs 23767.60 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 138569.50 million for the quarter ended March 31, 2008 to Rs 125901.20 million for the quarter ended March 31, 2009. The stock, a Nifty component, is up nearly 7% at Rs 164.75 now. Last week, the stock had touched a 52-week high of Rs 181.80. It had plunged to Rs 55.25 in mid November 2008.

European market are trading weak and the U.S. index futures are also trending lower. Still, the Indian market remains positive with metal, capital goods, oil and PSU stocks trading firm with sharp gains. Bank stocks remain quite subdued today. FMCG, pharma and power sectors witness stock specific action.

Mahindra & Mahindra has posted a net profit of Rs 4180.70 million for the quarter ended March 31, 2009 as compared to Rs 2211.00 million for the quarter ended March 31, 2008. Total income has increased from Rs 31754.50 million for the quarter ended March 31, 2008 to Rs 37158.80 million for the quarter ended March 31, 2009. The stock, up by over 5% at Rs 657 now, is likely to face some resistance near Rs 685.

A decisive breakout there can take the stock to Rs 750 or even higher in the short run.

1:05 PM: Larsen & Toubro has posted a profit after tax of Rs 9985.20 million for the quarter ended March 31, 2009 as compared to Rs 9667.60 million for the quarter ended March 31, 2008. Total Income has increased from Rs 87372.10 million for the quarter ended March 31, 2008 to Rs 108357.90 million for the quarter ended March 31, 2009.

The stock is up 3.75% at Rs 1360 now.

The United Nations has forecast the world economy to shrink 2.6 per cent in 2009, downgrading the already-pessimistic estimate made five months ago. According to a report from the world body, the world economy is expected to shrink by 2.6 per cent in 2009, according to the pessimistic scenario of the forecast presented in January.. In January, the UN had forecast that the world economy would shrink 0.5 per cent this year.

Coromandel Fertilisers has signed a Joint Venture Agreement with M/s. Soquimich European Holdings BV, Netherlands, a subsidiary of SQM, Chile, for setting up of 15000 MT Water Soluble Fertilisers (NPK Grades) plant at Kakinada at a total investment of Rs 100 Million.

Infrastructure companies are likely to see some strong rallies in the near to medium term. The government's thrust on infrastructure development and the likelihood of market regulator SEBI relaxing certain fund raising norms for the sector are likely to aid the sentiment towards these stocks.

LIC Housing Finance hit a new high at Rs 500 today. The stock has some more steam left in it and one looking for some strong gains can try this stock even at current levels. Short term players can book profits at rallies and re-enter later at declines.

TCS (Rs 652) can move on to Rs 725 and a strong breakout there can lift the stock to Rs 800 or even higher. One holding the stock with a long term view can stay invested with a stop loss near Rs 550 for now.

Wockhardt is reported to be in advanced talks to sell its German business, Espharma GmbH, to another German player, Lindopharm GmbH. The stock, traded at Rs 125 at present, can move up a bit in the near run. One with a good appetite for risk can try this stock at current levels and have a stop loss in place near Rs 105.

TN Newsprint & Papers (cmp Rs 83.50) can be retained for long term. The stock may not give very high returns but the downside risk for it quite limited. One can expect the stock to rise by around 10 - 12% over the next couple of months.

The market opened on a cautious note this morning amid weak global cues. The Sensex rose to 11,476.71 but has slipped to 14,106.27 now, netting a loss of 3.37 points. The Nifty is down marginally at 4274.85 after moving on to a high of 4295.50 at the bell.

Reliance Infra, ONGC, Hindalco, HDFC Bank, BHEL and SBI have declined sharply. RIL, NTPC, ITC, DLF, ACC and M&M have posted notable gains.

The market is likely to remain cautious today. Though there will be a negative bias initially, some buying at lower levels later on in the session is not ruled out. A moderate to high degree of volatility is in the offing.

Realty and bank stocks may see some sell-off after recent strong gains. Metal and capital goods stocks are also likely to face some pressure. However, buying at lower levels is not ruled out. Information technology stocks are likely to remain subdued.

BHEL has posted a net profit of Rs 1,347.47 crore for the quarter ended March 31, 2009 as compared to Rs 1,110.87 crore it had recorded for the quarter ended March 31, 2008. Total income has increased from Rs 7,626.20 crore for the quarter ended March 31, 2008 to Rs 11,047.24 crore for the quarter ended March 31, 2009. The stock is likely to find fairly good support at lower levels.

Jindal Steel may see some buying thanks to a sharp jump in the company's net profit for the year ended March 31, 2009. The company has posted a net profit of Rs 1,536.48 crore for the year ended March 31, 2009 as compared to Rs 1,236.96 crore for the year ended March 31, 2008.

It will be a highly slippery ride for shares of Cairn India today following weak numbers posted by the company for the quarter ended 31 March 2009. The firm has posted a net loss of Rs 16.90 crore for the quarter ended March 31, 2009 as compared to a net loss of Rs 8.73 crore for the quarter ended March 31, 2008.

Reliance Industries has explored two more gas reserves which are close to D-6 in the Krishna-Godavari basin, with estimates putting the natural gas reserves at 20 trillion cubic feet.

Larsen & Toubro, SAIL, Mahindra & Mahindra, Tata Power, Chennai Petroleum Corporation, Dalmia Cement, Gokaldas Exports, GMDC, Ipca Labs, Karur Vysya Bank, Nagarjuna Construction, Swaraj Mazda and Tata Chemicals will be announcing their quarterly results today.

The market had rallied on strong global cues and on expectations the government would do all its best to boost the sagging economy through Union Budget that is to be presented early July.

But the sentiment is likely to turn weak this morning following a negative close on Wall Street and weakness in Asian markets with concerns over the pace of economic recovery returning to haunt investor sentiment. Rising treasury yields and none too encouraging home sales data triggered heavy selling on Wall Street yesterday and the imminent bankruptcy of auto major General Motors too weighed in.

Action in the F&O segment due to expiry of May series derivatives contracts will have an impact in the cash market.

Closing Bell 28th May 2009

Closing Bell 28th May 2009

The Indian markets recorded another strong day today, possibly taking cues from their Asian peers and hopes of an improved economic and political climate. Among the key Asian markets, Hong Kong and China led the pack of gainers with 5% and 2% gains respectively. Among Indian stocks, those from the metal and realty sectors gained ground while the ones from the pharma and FMCG sectors fell.

The BSE-Sensex and the NSE-Nifty closed with gains of around 185 points (1.3%) and 60 points (1.4%) respectively. The BSE-Midcap and BSE-Smallcap indices were up by 0.9% and 0.2% respectively. Rupee was trading at 47.65 to the US dollar at the time of writing.

L&T announced results today. Its standalone and consolidated sales grew by 35% YoY and 38% YoY respectively during FY09. Higher construction material costs and subcontracting charges led to a 0.2% YoY contraction in consolidated operating margins during the fiscal. Margins on a standalone basis contracted by 0.7% YoY. Consolidated net profits (excluding extraordinary items) grew by 31% YoY during FY09. Sharp increase in interest expenses though took some sheen off the bottomline. The company’s board recommended a final dividend of Rs 10.5 per share. The company’s E&C segment’s consolidated order backlog stood at Rs 703 bn at the end of March 2009, which is 2.2 times the consolidated sales of the segment in FY09.

The stock of Novartis ended on a strong note on the back of reports that the parent Novartis AG which holds around 51% in the company is likely to revise its open offer price upwards. It is believed that open offer price that was earlier Rs 351 will be revised to a range of Rs 425 and Rs 450 a share. The buyback open offer to increase the parent company’s holding to 90% started on 20th May and will close on the 8th of June.

The United Nations has gotten more pessimistic about the growth of the global economy. In January, the UN had estimated the world economy to shrink by 0.5% during the year 2009. However, it has now revised its estimates downwards, estimating a 2.6% fall instead. A UN spokesperson stated that they are yet to see any positive signals of revival in the economy. However, the organisation has also stated that with a coordinated, development-oriented policy scenario, the world economy would recover to an annual growth of 4% to 5% in 2010 to 2015.

The Indian markets continued to surge further during the previous two hours of trade on the back of continued buying activity among the index heavyweights. Currently, stocks from the metals, auto and pharma sectors are leading the pack of gainers, while select telecom and power stocks are trading weak. The overall advance to decline ratio is poised at 1.8 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading higher, up by around 160 points and 50 points respectively. The BSE-Midcap and BSE-Smallcap are also trading higher, up by around 0.6% and 0.4% respectively. The rupee is trading at 47.69 to the dollar.

As per a leading business daily, Godrej Consumer has acquired 49% stake in Godrej Sara Lee. This is possible on account of the merger of Godrej ConsumerBiz Private (GCBPL) and Godrej Hygiene Care Private (GHCPL) with the company. These companies together hold 49% stake in Godrej Sara Lee. Godrej Sara Lee is the market leader in household insecticides, air care and hair cream segment with around Rs 2 bn in revenues. The proposed consolidation would strengthen the company’s position in the FMCG market and will scale its ability to pursue growth opportunities. The merger will consolidate the promoters’ holding in Godrej Consumer from 69.7% to 74.8%. Further, the company will also be eyeing Sara Lee’s 51% stake, as the latter is reportedly in talks to sell its global household and personal care portfolios to focus on its core business of food and beverages. The stock of Godrej Consumer is trading firm, while Dabur is in the red.

Auto stocks are trading mixed. While M&M is trading firm, Tata Motors and Ashok Leyland are in the red. As per a leading business daily, Tata Motors has completed its final obligation for the US$ 3 bn bridge loans, which it had taken a year earlier for financing the Jaguar Land Rover acquisition. As such, the company has been able to extend the final maturity of US$ 1 bn by over 18 months to December 2010, while the other obligations were met through a mix of bond issue, rights issue and the proceeds from the divestment. It may be noted that despite the economic crisis globally, which resulted in liquidity tightening, Tata Motors has been able to refinance its loan obligations.

The Indian markets gained further ground during the previous two hours of trade on account of sustained buying activity. Stocks from the steel, engineering and auto are leading the pack of gainers, while select stocks from the telecom, power and energy are trading lower. The overall advance to decline ratio is poised at 1.7 to 1 on the BSE.

The BSE Sensex and NSE Nifty are trading higher, up by around 150 points and 45 points respectively. The BSE Midcap and BSE Smallcap indices are trading higher by 0.5% and 0.3% respectively. The rupee is trading at 47.80 to the dollar.

Energy stocks are trading mixed. While Reliance Industries and ONGC are trading higher, HPCL and BPCL are trading lower. As per a leading business daily, Reliance Industries (RIL) has discovered 20 trillion cubic feet (tcf) of natural gas reserves in D-3 and D-6 blocks of the KG basin. The estimates are from UK based Hardy Oil and gas which has 10% stake in these blocks. RIL has the remaining stake. It may be noted that RIL also owns the D-6 block in the same fields, which is estimated to hold up to 50 tcf of gas reserves and 143 m barrels of oil. This is positive development for the Indian natural gas industry in general and RIL in particular as it creates another significant source of revenue.

Pharma stocks are trading mixed. While Ranbaxy and Sun Pharma are trading higher, Wockhardt is trading lower. As per a leading business daily, Wockhardt is likely to sell its German business Espharma GmbH in order to raise cash. It is believed that the company is in talks with Lindopharm GmbH, a Germany based company for the same. However, the size of the deal has not been disclosed. It may be noted that Wockhardt acquired Espharma for US$ 11 m in 2004. However, the company has been facing problems to service its debt of Rs 30 bn. Also, the dynamics of the German market which has changed from branded generics to unbranded generics and the pricing pressure is taking a heavy toll on Espharma.

In line with its Asian peers, the Indian markets have started the day on a positive note. Software, energy, engineering and power stocks are trading firm, while select telecom and banking stocks are in the red. The overall advance to decline ratio is poised at 2 to 1 on the NSE. As regards global markets, the US ended lower on the back of sharp rise in Treasury yields coupled with news of looming bankruptcy for General Motors. The European markets closed higher yesterday, while the Asian indices are currently trading firm. Crude oil prices have gone up nearly 20% since the beginning of this month.

The BSE Sensex is trading higher by around 58 points. The NSE Nifty is up 36 points. The BSE Midcap and BSE Smallcap index are both trading higher. The rupee is trading at 48.06 to the dollar.

BHEL announced its FY09 results yesterday. The net sales grew 36% YoY during FY09, led by a strong growth in both its segments. BHEL’s ‘power’ segment grew by 34% YoY, while its ‘industry’ segment recorded a growth of 21% YoY. During FY09, the company’s operating margins contracted by 2.9% YoY owing to higher raw material costs (as a percentage of sales). Net profits grew by 10% YoY during FY09. This is mainly on account of BHEL’s poor performance at the operating level. During 4QFY09, the company’s topline and bottom line grew by 46% YoY and 21% YoY respectively. The Board has recommended a final dividend of Rs 8 per share (that, along with an interim dividend of Rs 9 per share paid during the year, leads to a dividend yield of 0.8%). Engineering stocks are trading firm.

Software major, Infosys Technologies is seeing good outsourcing business opportunities in India and the Middle East. The company on account of the global economic downturn has been facing pressure in the developed markets. As per the company, around 89% of its clients have indicated a cutback in their technology budgets. Hence it is looking at India and the Middle East. The company has won three deals in these markets over the last five months. Amidst the ongoing financial crisis and economic slowdown in the US, Infosys registered 10% QoQ revenue growth in sales from the domestic market. However, the company witnessed a decline in sales from the European region (by around 3% QoQ) and North America (by around 2% QoQ). The management has estimated 3% to 7% lower earnings in FY10 as compared to FY09. Software stocks are trading higher.