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 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.

Market Voices 26 May 2009

The global financial crisis is not yet over, says Finance Minister Pranab Mukherjee on CNBC TV18. The government's goal is to bring back the economy on growth path and budget will be presented in first week of July, he feels. We hope to pass the budget by July end, he says. Massive investment in infrastructure is needed to spur growth, he says. We need a faster pace of investment in infrastructure, he adds. We hope to see more participation from FIIs, he says. I welcome the Bharti-MTN deal, he adds. We see global growth picking up from October, he says.

Buy Ranbaxy with a target of Rs 300 plus and keep a stop loss of Rs 205, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 244, down 8.3% on the BSE.

In a correction, Sensex could see 10000-12000 levels, says Marc Faber, investment guru, on CNBC TV18. Dollar may be oversold and could weaken further, he feels. Global commodity prices to rise if economies improve, he says.

Power and infrastructure space could give phenomenal returns going forward, says Sanjeev Motha of East India Securities, on NDTV Profit. Buy Tata Power and Reliance Power, IVRCL Infra and GMR Infra and ABB and Siemens in any correction and keep in the portfolio for long-term gains, he adds. In the midcaps and smallcaps space, buy Jyoti Structures, KEC Intermational, Apar Industries and WS Industries, he says.

Post the election results there is a renewed interest in long-term buying and today's correction will be welcome for those who missed the rally, says Rajesh Jain of Pranav Securities, on CNBC TV18. A lot of buying is happening and will happen now as there is clarity on the government front, he says. Ahead of the budget, if the market senses something positive on the policy front, Nifty could run up to 5500, he adds.

This is now a buy on dips market, says Nishit Shah of IDFC on CNBC TV18. There are a lot of buying opportunities still in the midcap space, he adds. There is a lot of money waiting on the sidelines and the market may surprise on the upside ahead of the budget, he feels.


Buy HUL with a target of Rs 260 plus and keep a stop loss of Rs 225, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 230, down 0.75% on the BSE.

The midcaps had run-up and now profit booking is setting in, says Deven Choksey of KR Choksey, on Zee Business. Nifty is likely to be in a range for the next few weeks, he adds.

Citi maintains buy on Bharti Airtel with a target of Rs 840 and Macquaire has a target of Rs 975 on the stock, reports NDTV Profit. The stock is currently trading at Rs 770, down 5.1% on the BSE.

Buy Bharti Airtel with a target of Rs 900-1000 (it has been an underperformer), says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 770, down 5.1% on the BSE.

Buy Moser Baer, Kale Consultants, Balrampur Chini, UTV Software, PVR and Prime Focus in any correction and keep in the portfolio for long-term gains, says Salil Sharma of Kapoor & Sharma Company, on CNBC TV18.

Hold Dish TV with a target of Rs 60-62, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 45, down 2.8% on the BSE.

Buy Tata Tea with a target of Rs 725 and keep a stop loss of Rs 630, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 695, down 0.2% on the BSE.

Buy PTC with a target of Rs 90 and keep a stop loss of Rs 80 for long-term investment keep a stop loss of Rs 65, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 86, down 3.6% on the BSE.

The market is looking bad, trading weak as pressure from global markets continue. Sensex is trading at 13659, down 253 points and Nifty is at 4146, down 91 points from the previous close. CNX Midcap index is down 2.42% and BSE Smallcap index is down 1.84%. The market breadth is negative with advances at 416 against declines of 841 on the NSE.

Buy Great Eastern Shipping with a target of Rs 290 and keep a stop loss of Rs 230, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 254, down 2.5% on the BSE.

Buy Tata Steel around Rs 250-300 for the long term in any correction with a target of Rs 472 till June 10, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 360, down 2% on the BSE.

Buy Hero Honda with a target of Rs 1450 and keep a stop loss of Rs 1150, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 1335, up 1.1% on the BSE.

Buy DCB at current levels with a target of Rs 50-55 in a month and Rs 100 in the long term, says Prasad Kushe, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 38, down 5.6% on the BSE.

Buy ICICI Bank with a target of Rs 800 and keep a stop loss of Rs 550, says Neerja Jain of crnindia.com on CNBC Awaaz. The stock is currently trading at Rs 666, down 5% on the BSE.

Buy Bajaj Hindustan with a target of Rs 170 and keep a stop loss of Rs 130, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 139, down 3.5% on the BSE.

The Asian markets wrapped up a poor session while European markets have opened weak. Poor global cues are putting pressure on our market that is trading weak. Sensex is trading at 13721, down 191 points and Nifty is at 4159, down 77 points from the previous close. CNX Midcap index is down 2.25% and BSE Smallcap index is down 2%. The market breadth is negative with advances at 599 against declines of 656 on the NSE.

Buy DLF at Rs 310 with target of Rs 400, says Neera Jain, technical analyst, on NDTV Profit. Keep stop loss closing below Rs 300, she adds. The stock is currently trading at Rs 342.60, down 2.7% on the BSE.

Buy GHCL at Rs 44 with short-term target of Rs 55 and long-term target of Rs 75, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 37, he adds. The stock is currently trading at Rs 42.95, down 1.9% on the BSE.

Hold Indiabulls Financial Services with short-term target of Rs 235, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 175, he adds. The stock is currently trading at Rs 204.95, up 5% on the BSE.

While the FIIs have sold Nifty Futures worth Rs 1000 crore over last two days, I expect markets to consolidate at these levels with some profit booking, says Karun Mutha of Investsmart on CNBC TV18. The Nifty should close around 4200 on expiry and the midcap outperformance may continue, he adds.

Hold Bharti Airtel for returns of 16-18% in the long term, says P Phani Sekhar of Angel Broking on NDTV Profit. The stock is currently trading at Rs 776, down 4.4% on the BSE.

Buy Patni Computers only if it comes down to Rs 180-200, says Neera Jain, technical analyst, on NDTV Profit. Keep stop loss closing below Rs 170, she adds. The stock is currently trading at Rs 217, up 0.4% on the BSE.

Buy Indowind Energy at Rs 33 with short-term target of Rs 45 and longer-term target of Rs 60, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 25, he adds. The stock is currently trading at Rs 34.70, up 5.2% on the BSE.

Hold JP Associates with target of Rs 200, says Neera Jain, technical analyst, on NDTV Profit. Keep stop loss of Rs 160-165, she adds. The stock is currently trading at Rs 184.25, down 0.7% on the BSE.

Buy Jaiprakash Hydro-Power with target of Rs 70-75 in one or two weeks, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 66.20, up 2.9% on the BSE.

The market at noon appears to be making marginal recovery. Sensex is trading at 13939, up 26 points from its previous close, and Nifty is at 4229, down 8 points. CNX Midcap index is up 0.2% and BSE Smallcap index is up 1.8%. The market breadth is positive with advances at 894 against declines of 349 on the NSE.

Buy Berger Paints at Rs 44 with short-term target of Rs 52 and longer-term target of of Rs 60, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 38, he adds. The stock is currently trading at Rs 44, up 0.6% on the BSE.

Buy NTPC at current levels with short-term target of Rs 230, says Vijay Bhambwani, technical analyst, on CNBC Awaaz. Keep long-term target of Rs 275 in 12-15 months, he adds. The stock is currently trading at Rs 208, down 2.2% on the BSE.

Buy Macmillan India at Rs 76 with short-term target of Rs 100 and longer-term target of Rs 120, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 65, he adds. The stock is currently trading at Rs 82.50, up 5.6% on the BSE.
Buy Chambal Fertilisers with targets of Rs 75 and then 80 in the short term, says Mitesh Thacker, technical analyst, on CNBC TV18. The stock is currently trading at Rs 63.90, down 0.9% on the BSE.

Hold DS Kulkarni with target of Rs 75-77, says Pradeep Surekha, technical analyst, on Zee Business. Keep stop loss below Rs 50, he adds. The stock is currently trading at Rs 61.35, up 6.4% on the BSE.

Buy Era Infra with short-term target of Rs 140-145 and six-months' target of Rs 170, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 85, he adds. The stock is currently trading at Rs 118, up 13.4% on the BSE.

We expect the positive momentum to continue till expiry, says Ambareesh Baliga of Karvy Stock Broking on CNBC TV18. However, he believes that the rally seems overdone and that we could see a correction after that. His advice is to book profits at higher levels.

Buy Bajaj Hindustan with target of Rs 160, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 133, he adds. The stock is currently trading at Rs 141.35, down 2.2% on the BSE.

Buy Great Offshore with stop loss of Rs 310, says Pradeep Surekha, technical analyst, on Zee Business. If it crosses Rs 344 it can go up to Rs 370, he adds. The stock is currently trading at Rs 355.60, up 7.6% on the BSE.

An hour into opening, the market is trading choppy. Frontline stocks are seeing some selling pressure while midcap and smallcap stocks continue to make gains. The Asian markets are trading weak. Sensex is trading at 13915, up 2 points from its previous close, and Nifty is at 4224, down 14 points. CNX Midcap index is up 0.7% and BSE Smallcap index is up 2.3%. The market breadth is positive with advances at 976 against declines of 250 on the NSE.

Book profits in NIIT, says Siddharth Bhamre of Angel Broking on CNBC TV18. He advises staying away from IT stocks for the moment. The stock is currently trading at Rs 51.35, down 3.4% on the BSE.

Buy Educomp Solutions with target of Rs 3000-3050, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2885.45, up 0.1% on the BSE.

Buy DLF with target of Rs 400, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 315-320, he adds. The stock is currently trading at Rs 355.25, up 0.9% on the BSE.

Buy Ranbaxy only if it closes above Rs 270, says Hardik Jain, technical analyst, on CNBC Awaaz. Keep target of Rs 350, he adds. The stock is currently trading at Rs 259, down 2.9% on the BSE.

Buy Cairn India when it comes down to Rs 180, says Siddharth Bhamre of Angel Broking on CNBC TV18. The stock is currently trading at Rs 217, up 1.4% on the BSE.

Hold Idea Cellular with target of Rs 95, says Pradeep Surekha, technical analyst, on Zee Business. Keep stop loss below Rs 65, he adds. The stock is currently trading at Rs 74.75, up 2.5% on the BSE.

Intra-day traders can sell BEML, says Hemen Kapadia, technical analyst, on CNBC TV18. The stock is currently trading at Rs 761, up 1% on the BSE.

Buy Videocon with intra-day target of Rs 175, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 155, he adds. The stock is currently trading at Rs 171.10, up 6.1% on the BSE.

Buy Aban Offshore at current levels with target of Rs 1060, says Akshita Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 917, up 1.7% on the BSE.

Buy Tata Power on dips at Rs 960-970, says Hardik Jain, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1070.10, down 0.6% on the BSE.

Buy Satyam with intra-day target of Rs 60, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 53, he adds. The stock is currently trading at Rs 56.50, up 3.8% on the BSE.

The market opens on a flat and quiet note. The Asian markets are trading mixed. Sensex is trading at 13958, up 45 points from its previous close, and Nifty is at 4240, up 2 points. CNX Midcap index is up 1.4% and BSE Smallcap index is up 1.8%. The market breadth is positive with advances at 666 against declines of 61 on the NSE.

Buy GMR Infra with intra-day target of Rs 175, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 162, he adds. The stock is at Rs 164.70, down 2.6% on the BSE.

Buy Gitanjali Gems at Rs 117 with target of Rs 133, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 110, she adds. The stock is at Rs 116.30, up 17.8% on the BSE.

Buy JP Associates at Rs 185 with target of Rs 192, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 180, she adds. The stock is at Rs 186.10, up 7.5% on the BSE.


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BSE / NSE Shares analysis for 26 May 2009

The market opened on a cautious but firm note this morning but spent not more than a an hour in the positive territory today. Though Asian stocks were a bit mixed when trade commenced this morning, they declined sharply and settled lower. European markets opened weak and that proved a strong enough trigger for the bears to go on a rampage this afternoon.

The Sensex ended provisionally at 13,589.37, around 71 points off the day's low, recording a loss of nearly 325 points or 2.23%. The Nifty closed at 4107.70, down 129.85 points or 3.06%.

Barring BSE IT, which ended with a modest gain, the other sectoral indices closed sharply lower today. Realty, capital goods, power, consumer durables, telecom and bank stocks were among the prominent losers.

Infosys Technologies, Hindalco and Wipro ended on a firm note. RComm, Ranbaxy, Tata Motors, NTPC, ICICI Bank, Bharti Airtel and DLF ended lower by 4% - 10%. JP Associates, M&M, ITC, ONGC, RIL, Tata Steel, SBI, Maruti Suzuki, ACC and HDFC Bank also closed with notable losses.

Power Grid, ABB, Reliance Capital, Tata Comm, RPower, Unitech, SAIL, Axis Bank, Idea Cellular, BPCL, Siemens, Cipla, Suzlon Energy and Nalco declined sharply. Hero Honda ended with a sharp gain.

The Karnataka Bank stock opened o na firm note this morning on fairly good quarterly results.
The buoyancy at the counter was due to a sharp rise in the bank's net profit for the quarter ended 31 March 2009. The bank had reported a 3% rise in net profit to Rs 83.14 crore in the said quarter from a net profit of Rs 80.78 crore in the corresponding quarter a year ago. The bank had also announced that it will seek shareholders' approval to raise Rs 500 crore through qualified institutional placement (QIP). However, after trading in the positive zone till around mid afternoon, the stock has tumbled into the red. At Rs 133, it is down by as much as 7.3% now.
One holding the stock for long term can stay invested and look at buying more at Rs 110 - 115 levels

LIC Housing Finance Ltd has informed that the Board of Directors at the Board Meeting to be held on June 01, 2009, may also consider further issue of equity shares on preferential basis and/or Qualified Institutional Placements basis. The stock, traded at Rs 429 now, may see some resistance at Rs 450 - 460 levels. One looking at long term can go in for the stock at Rs 360 - 370 levels.

Sugar stocks Bannari Amman, Bajaj Hindustran, Rajshree Sugars, Renuka Sugars, Triveni Engineering and EID Parry are likely to drift lower in the very short run. One holding the stocks with a long term view can stay invested. Others can sell these stocks at sharp rallies and get back into the counter at lower levels.

Automobile stocks are likely to have a slippery ride on fears of a possible hike in fuel prices.
There is a likelihood of the government decontrolling oil prices and if that happens, fuel prices will see a fairly sharp rise. Vehicles sales have also not picked up any significantly. So, automobile stocks are likely to drift down a bit. One with a long term view can buy these stocks at sharp dips.

PSU stocks are likely to be in focus as the government is likely to resurrect the ministry of disinvestments in a bid to raise funds by selling a part of its stake in public sector companies.
NMDC, MMTC, RCF, NLC and STC are likely to see some good upside over a medium term.

IVRCL Infrastructure and GMR Infra can be bought at declines. Though the two stocks are likely to see some weakness in the near term, one holding them can stay invested and buy more in small quantities at dips.

Tata Chemicals (Rs 225) has support at Rs 170 - 180 levels. One holding the stock can stay invested with a stop loss near those levels. The stock can move on to Rs 285 and a strong breakout there can lift it to Rs 330 - 345.

Most of the Asian markets are down in the red today. Korea has suffered the most with its KOSPI going down by over 2%. Shanghai, Hong Kong, Taiwan, Singapore and Japanese indices are down by 0.3% - 1%. The Australian markets bounced back after early weakness and ended on a firm note today.

Power Grid, Areva, NTPC and Power Finance Corporation can be picked up at declines in a staggered way. These are stocks for long term and hence one need not worry about any significant drop in their values in the near term. Sharp dips can be used to increase exposure.

NTPC can be retained for good gains over a medium term. The stock, currently traded at Rs 208, can move on to Rs 225 - 230 where it is likely to find some resistance. Over a long run one can see the stock moving past Rs 300.

The market is likely to find some good support at lower levels till expiry of May series derivatives contracts. There will be a decent rally ahead of the Budget but one has got to be extremely selective with regard to fresh exposure. Global economy is showing signs of a recovery but momentum will take a fairly long time to come.

Bank of Baroda has posted a net profit after minority interest, share of earnings in Associates of Rs 23840.80 million for the year ended March 31, 2009 as compared to Rs 15483.80 million for the year ended March 31, 2008. The group's total income has increased from Rs 143066.70 million for the year ended March 31, 2008 to Rs 182979.10 million for the year ended March 31, 2009.
The PSU bank stock is trading marginally higher at Rs 441.50 now. One holding the stock with a long term plan can stay invested. Fresh buying can be considered at sharp falls.

Bharti Airtel is facing pressure for the second successive session on dilution worries. The stock, which had ended with a sharp loss yesterday, is down by around 4.4% at Rs 774 now on selling pressure.

The initial reaction to the Bharti - MTN deal structure is that Bharti's estimated earnings per share (EPS) for the current financial year and the next could be diluted by up to 10%.

Investors looking for some good returns over a 2 -3 year period can go in for ACC, Ambuja Cements, Ultratech and Dalmia Cement at dips. Though a fairly good upmove is possible even over a near run, these stocks are likely to remain a bit slippery. Once the budget is presented and the government spells out its priorities for infrastructure, these stocks are likely to find favour once again.

Metal stocks Hindalco, SAIL, Tata Steel and Sterlite Industries can give good returns over a medium term. Tne can accumulate these stocks in small quantities at declines. Hindustan Zinc, JSW Steel and Ispat Industries can also give fairly solid returns over a medium run.

Market Outlook

The market is likely to remain sideways for a better part of the session. Some volatility is not ruled out as May series derivatives contracts expire this Thursday. The downside is not likely to be much as institutional investors are expected to step in at lower levels.

Sector Watch

Realty, auto and metal stocks are likely to be in focus. Buying is expected to be stock specific in information technology and capital goods sectors. Oil stocks may remain sluggish.

Scrip Watch

ONGC may experience a sluggish outing today on reports that the company stands to lose about Rs 140 billion if it was forced to continue in Cairn India's prolific Rajasthan oilfields as it would have to pay all government levies.

Tata Motors may edge higher as the company is likely to roll over close to $ 1.05 billion of debt remaining out of the $ 3-billion bridge loan it had taken in 2008 to fund the acquisition of British automobile company Jaguar and Land Rover.

Ranbaxy Laboratories may see some sell-off due to profit taking today. Reports that the company has missed the deadline of May 2009 to start supplying raw materials to British drugmaker Astrazeneca may also weigh in to an extent.

RECL may move up on strong quarterly results. The company has posted a net profit of Rs 3,880.40 million for the quarter ended 31 March 2009, a rise of around 65% over a net profit of Rs 2,351 million it had recorded in the corresponding quarter last year.

Macro and Market Factors

Global cues are mixed this morning. Wall Street and the London stock market were closed yesterday on national holidays. The mood on the Asian bourses is somewhat cautious due to lack of triggers.

Back home, action in the derivatives segment ahead of May series expiry is likely to have an impact in the cash market

BSE / NSE Shares analysis for 26 May 2009

BSE / NSE Shares analysis for 26 May 2009

The market opened on a cautious but firm note this morning but spent not more than a an hour in the positive territory today. Though Asian stocks were a bit mixed when trade commenced this morning, they declined sharply and settled lower. European markets opened weak and that proved a strong enough trigger for the bears to go on a rampage this afternoon.

The Sensex ended provisionally at 13,589.37, around 71 points off the day's low, recording a loss of nearly 325 points or 2.23%. The Nifty closed at 4107.70, down 129.85 points or 3.06%.

Barring BSE IT, which ended with a modest gain, the other sectoral indices closed sharply lower today. Realty, capital goods, power, consumer durables, telecom and bank stocks were among the prominent losers.

Infosys Technologies, Hindalco and Wipro ended on a firm note. RComm, Ranbaxy, Tata Motors, NTPC, ICICI Bank, Bharti Airtel and DLF ended lower by 4% - 10%. JP Associates, M&M, ITC, ONGC, RIL, Tata Steel, SBI, Maruti Suzuki, ACC and HDFC Bank also closed with notable losses.

Power Grid, ABB, Reliance Capital, Tata Comm, RPower, Unitech, SAIL, Axis Bank, Idea Cellular, BPCL, Siemens, Cipla, Suzlon Energy and Nalco declined sharply. Hero Honda ended with a sharp gain.

The Karnataka Bank stock opened o na firm note this morning on fairly good quarterly results.
The buoyancy at the counter was due to a sharp rise in the bank's net profit for the quarter ended 31 March 2009. The bank had reported a 3% rise in net profit to Rs 83.14 crore in the said quarter from a net profit of Rs 80.78 crore in the corresponding quarter a year ago. The bank had also announced that it will seek shareholders' approval to raise Rs 500 crore through qualified institutional placement (QIP). However, after trading in the positive zone till around mid afternoon, the stock has tumbled into the red. At Rs 133, it is down by as much as 7.3% now.
One holding the stock for long term can stay invested and look at buying more at Rs 110 - 115 levels

LIC Housing Finance Ltd has informed that the Board of Directors at the Board Meeting to be held on June 01, 2009, may also consider further issue of equity shares on preferential basis and/or Qualified Institutional Placements basis. The stock, traded at Rs 429 now, may see some resistance at Rs 450 - 460 levels. One looking at long term can go in for the stock at Rs 360 - 370 levels.

Sugar stocks Bannari Amman, Bajaj Hindustran, Rajshree Sugars, Renuka Sugars, Triveni Engineering and EID Parry are likely to drift lower in the very short run. One holding the stocks with a long term view can stay invested. Others can sell these stocks at sharp rallies and get back into the counter at lower levels.

Automobile stocks are likely to have a slippery ride on fears of a possible hike in fuel prices.
There is a likelihood of the government decontrolling oil prices and if that happens, fuel prices will see a fairly sharp rise. Vehicles sales have also not picked up any significantly. So, automobile stocks are likely to drift down a bit. One with a long term view can buy these stocks at sharp dips.

PSU stocks are likely to be in focus as the government is likely to resurrect the ministry of disinvestments in a bid to raise funds by selling a part of its stake in public sector companies.
NMDC, MMTC, RCF, NLC and STC are likely to see some good upside over a medium term.

IVRCL Infrastructure and GMR Infra can be bought at declines. Though the two stocks are likely to see some weakness in the near term, one holding them can stay invested and buy more in small quantities at dips.

Tata Chemicals (Rs 225) has support at Rs 170 - 180 levels. One holding the stock can stay invested with a stop loss near those levels. The stock can move on to Rs 285 and a strong breakout there can lift it to Rs 330 - 345.

Most of the Asian markets are down in the red today. Korea has suffered the most with its KOSPI going down by over 2%. Shanghai, Hong Kong, Taiwan, Singapore and Japanese indices are down by 0.3% - 1%. The Australian markets bounced back after early weakness and ended on a firm note today.

Power Grid, Areva, NTPC and Power Finance Corporation can be picked up at declines in a staggered way. These are stocks for long term and hence one need not worry about any significant drop in their values in the near term. Sharp dips can be used to increase exposure.

NTPC can be retained for good gains over a medium term. The stock, currently traded at Rs 208, can move on to Rs 225 - 230 where it is likely to find some resistance. Over a long run one can see the stock moving past Rs 300.

The market is likely to find some good support at lower levels till expiry of May series derivatives contracts. There will be a decent rally ahead of the Budget but one has got to be extremely selective with regard to fresh exposure. Global economy is showing signs of a recovery but momentum will take a fairly long time to come.

Bank of Baroda has posted a net profit after minority interest, share of earnings in Associates of Rs 23840.80 million for the year ended March 31, 2009 as compared to Rs 15483.80 million for the year ended March 31, 2008. The group's total income has increased from Rs 143066.70 million for the year ended March 31, 2008 to Rs 182979.10 million for the year ended March 31, 2009.
The PSU bank stock is trading marginally higher at Rs 441.50 now. One holding the stock with a long term plan can stay invested. Fresh buying can be considered at sharp falls.

Bharti Airtel is facing pressure for the second successive session on dilution worries. The stock, which had ended with a sharp loss yesterday, is down by around 4.4% at Rs 774 now on selling pressure.

The initial reaction to the Bharti - MTN deal structure is that Bharti's estimated earnings per share (EPS) for the current financial year and the next could be diluted by up to 10%.

Investors looking for some good returns over a 2 -3 year period can go in for ACC, Ambuja Cements, Ultratech and Dalmia Cement at dips. Though a fairly good upmove is possible even over a near run, these stocks are likely to remain a bit slippery. Once the budget is presented and the government spells out its priorities for infrastructure, these stocks are likely to find favour once again.

Metal stocks Hindalco, SAIL, Tata Steel and Sterlite Industries can give good returns over a medium term. Tne can accumulate these stocks in small quantities at declines. Hindustan Zinc, JSW Steel and Ispat Industries can also give fairly solid returns over a medium run.

Market Outlook

The market is likely to remain sideways for a better part of the session. Some volatility is not ruled out as May series derivatives contracts expire this Thursday. The downside is not likely to be much as institutional investors are expected to step in at lower levels.

Sector Watch

Realty, auto and metal stocks are likely to be in focus. Buying is expected to be stock specific in information technology and capital goods sectors. Oil stocks may remain sluggish.

Scrip Watch

ONGC may experience a sluggish outing today on reports that the company stands to lose about Rs 140 billion if it was forced to continue in Cairn India's prolific Rajasthan oilfields as it would have to pay all government levies.

Tata Motors may edge higher as the company is likely to roll over close to $ 1.05 billion of debt remaining out of the $ 3-billion bridge loan it had taken in 2008 to fund the acquisition of British automobile company Jaguar and Land Rover.

Ranbaxy Laboratories may see some sell-off due to profit taking today. Reports that the company has missed the deadline of May 2009 to start supplying raw materials to British drugmaker Astrazeneca may also weigh in to an extent.

RECL may move up on strong quarterly results. The company has posted a net profit of Rs 3,880.40 million for the quarter ended 31 March 2009, a rise of around 65% over a net profit of Rs 2,351 million it had recorded in the corresponding quarter last year.

Macro and Market Factors

Global cues are mixed this morning. Wall Street and the London stock market were closed yesterday on national holidays. The mood on the Asian bourses is somewhat cautious due to lack of triggers.

Back home, action in the derivatives segment ahead of May series expiry is likely to have an impact in the cash market

Closing Bell 26th May 2009

Closing Bell 26th May 2009


Persistent selling activity led the markets to lose further ground during the final hour of trade. However, the indices did stage a minor comeback during the fag end. The BSE-Sensex ended the day on a weak note, down by around 320 points, while the NSE-Nifty closed lower by about 130 points. Stocks from the mid-cap and small-cap space ended the day on a lower note as well, recording losses of 3.2% and 2.8% respectively. Stocks from the realty, capital goods and power sectors led the pack of losers today, while the IT space managed to garner the investors’ interests.

Other Asian markets ended the day on a weak note. The European indices are currently trading lower as well. Rupee was trading at 47.82 against the US dollar at the time of writing.

Pharma stocks ended the day on a weak note led by Ranbaxy, Biocon and Wockhardt. Dishman Pharma announced its results yesterday. The company’s revenues grew by 33% YoY during the year. This growth was led by both its business segments - CRAMS and Marketable molecules (MM). Further, its operating margins expanded by 5.7% on account of lower raw material prices (as percentage of sales). During FY09, the company’s EBIDTA margin stood at 24.9%. Profitability wise, Dishman recorded a 21% YoY growth during the year. It may be noted that during FY08, the company had an extraordinary income gain of Rs 379 m. On excluding the same, growth in net profits stood at a strong 75% YoY during FY09.

Two-wheeler stocks ended the day on a mixed note led by Bajaj Auto and TVS Motors. However, Hero Honda did manage to close on a firm note. As per a leading business daily, Bajaj Auto has planned to take full benefit of its alliance with Austrian power bike maker, KTM Power Sports, which it had acquired about two and half years back. The company plans to jointly manufacture complex and power engine bikes. In addition, both the companies will utilise their distribution network to market the bikes in India as well as abroad. It may be noted that Bajaj Auto is aiming to become the leader in the premium bike segment in India. It currently has only one model in the 200 cc plus segment while KTM has several offerings in the premium end bike segment.

Virgin Atlantic, a 51:49 partnership between Richard Branson and Singapore Airlines posted its results recently. The company’s profits for the year almost doubled as compared to the previous year. The management attributed rising demand for premium travel to be the reason for this strong performance. As per the company, pre-tax profits were higher by 97% YoY to 68 m pounds for the year ending February as against 35 m pounds in the previous year. It is an outstanding performance considering companies such as British Airways have recorded huge annual losses.

The Indian markets continued with their southward journey on account of sustained selling activity witnessed during the previous two hours of trade. Stocks from the pharma, power and telecom sectors are currently leading the pack of losers, while select stocks from the software, metal 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 lower, down by around 225 points and 100 points respectively. The BSE-Midcap and BSE-Smallcap indices are trading weak, down by around 2.2% and 1.8% respectively. The rupee is trading at 47.73 to the dollar.

Power stocks are trading mixed. While GVK Power and Torrent Power are trading higher, NTPC and Tata Power are trading lower. As per a leading business daily, India's largest power company NTPC has planned to spend 245 bn as capital expenditure during the current fiscal (FY10) as against Rs 151 bn spent in FY09. The company will invest around Rs 177 bn on a standalone basis, while Rs 68 bn will be invested through joint ventures and subsidiaries. It may be noted that NTPC plans to add around 3,300 MW of new generation capacity during this fiscal. It also plans to develop its captive coal mine in Jharkhand. The company is also trying to take up the renovation and maintenance of a power plant in Kazakhstan and is keen to operate 4,000 MW plant in the same region.

Banking stocks are trading mixed. While PNB and Bank of India are trading higher, SBI and IDBI Bank are trading lower. As per a leading business daily, PNB is mulling over acquiring a bank in Africa of a size of up to US$ 30 m. It may be noted that PNB does not have a significance presence in the overseas markets as compared to its peers. It currently has offices in 8 countries and has received approval from RBI to set up subsidiary in Canada, an offshore banking unit in Singapore and a branch in Dubai. The management plans to expand its presence in the overseas through acquisitions rather than setting up branches as the entry cost is high and the entire process is time consuming.

The Indian markets continued to trade in the negative territory during the previous two hours of trade as selling pressure sustained among the index heavyweights. Currently, stocks from the software and engineering sectors are trading firm, while select stocks from the telecom and power sectors are at the receiving end. The overall advance to decline ratio is poised at 2.8 to 1 on the BSE.

The BSE-Sensex and the NSE-Nifty are trading lower, down by around 30 points and 25 points respectively. However, the BSE-Midcap is trading flat and the BSE-Smallcap is trading higher by around 1.3%. The rupee is trading at 47.62 to the dollar.

As per a leading business daily, Ranbaxy may face a potential revenue loss of US$ 40 m to US$ 50 m on account of delay in supplying a key ingredient to UK based AstraZeneca for the manufacture of the latter’s anti-ulcer drug, ‘Nexium’. The delay in supply was on account of the ban imposed by US FDA on two of Ranbaxy’s plants, which prompted AstraZeneca to inspect the company’s plant at Punjab where the API for ‘Nexium’ is made. The company is also scheduled to start formulating a significant portion of ‘Nexium’ from May 2010. It must be noted that ‘Nexium’ is the world’s second largest selling drug with annual sales of US$ 5.5 bn. The stock of Ranbaxy is currently trading weak on the bourses.

Software stocks are trading firm led by Infosys, Wipro and TCS. As per a leading business daily, IT companies would gain from the outsourcing contracts expected from CitiGroup, which is believed to undergo a major cost control IT exercise to integrate its system. This initiative will bring new business contracts for the Indian IT vendors. TCS had earlier acquired CitiGroup’s back-office business and the latter is among the top clients of the company along with Wipro.


While the Indian markets began the day’s proceedings on a positive note, a shaky start subsequently led the indices to move towards the dotted line. While consumer durables and metal stocks are trading higher, auto and energy stocks are among the losers. The overall advance to decline ratio is poised at 6.3 to 1 on the BSE. As regards global markets, while US markets remained closed yesterday, the European markets ended the day on a mixed note. The Asian indices are currently trading mixed.

As per a leading business daily, Tata Motors is expected to roll over (sign new contracts with lenders) close to about US$ 1 bn of debt that is remaining out of the US$ 3 bn bridge loan it had taken in 2008 to fund the acquisition of Jaguar and Land Rover. The new contracts formed with the banks are likely to specify that Tata Motors repay the debt in four installments over an 18 month period at an interest of around 5% over the LIBOR (London interbank offered rate) which is currently 1.2%. This will provide the company headroom for paying back the loan by internal cash generation over the span of the above mentioned timeframe.

As per a leading business daily, HCL Infosystems has bagged an order worth Rs 2.4 bn from state-run telecom major Bharat Sanchar Nigam Ltd (BSNL) to implement a system integration project. The project will comprise over 60,000 enterprise resource planning (ERP) licences and will attempt to help BSNL improve its information flow, cycle time, financial performance and information transparency and thus to manage and coordinate all its resources, information, and functions of its business from shared data stores. The stock of HCL Infosystems is currently trading higher.