Closing Bell 3 July 2009
Persistent buying activity led the indices to surge upwards during the final hour of trade. The BSE-Sensex ended higher by around 250 points, while the NSE-Nifty closed higher by about 75 points. Stocks from the mid-cap and small-cap spaces ended the day on a firm note as well, recording gains of 0.8% and 0.4% respectively. Buying activity was witnessed in stocks across sectors led by banking, capital goods and power. IT, metals and FMCG were amongst the lowest gainers today.
Most of the other Asian markets ended the day on a weak note today. The European indices are currently trading in the red. Rupee was trading at 47.93 against the US dollar at the time of writing.
Two-wheeler stocks ended the day on a mixed note. While Bajaj Auto closed on a firm note, TVS Motors and Hero Honda ended in the red. Bajaj Auto announced its sales volumes for the month of June 2009 recently. The company reported a 2% YoY fall in total sales as compared to the same month last year. Its total two-wheeler sales dropped by 5% YoY, while its total three-wheeler sales increased by 26% YoY. The company also saw a 4% YoY increase in exports on a year on year basis. It may be noted that a large part of the two-wheeler sales (about 29%) was on account of its new launch, Pulsar 220 DTS-I, which saw a good response in the market. The company believes that this model will help it record a high double digit sales growth from August 2009. As for the sales volumes of the first quarter of the current fiscal, the company reported a 12% YoY decline in total sales over the same period in the previous year.
As per a leading business daily, truck rentals are set to move upwards following the recent price hike of fuels. The increase is expected to be in the range of 6% to 12%. It is believed that truck transport accounts for about 78% of total goods transported across India. The recent fuel price rise is expected to reverse the current trend of the inflation numbers. Indirectly it would lead to even higher prices of foods. This is possible because in India, 40% of the total goods traded by truckers are agri-products.
Concerned over the impact of lower energy demand, crude oil prices fell to US$ 66 a barrel yesterday. This was due to the announcement of high unemployment numbers across the US and Europe. In addition, these numbers also raised concerns over the global outlook. The data released has painted a very sorry picture indeed, with the US economy losing 467,000 more jobs in June and the unemployment rate edging up to 9.5%. It may be noted that this rate is the highest the US has witnessed in 26 years. The unemployment rate in Europe also rose to 9.5%, a 10-year high.
Led by intense buying activity during the previous two hours of trade, markets continued to climb higher in the positive territory. Currently stocks from the banking, pharma and steel sectors are garnering investors’ interest, while select stocks from the energy, auto and software sectors are trading weak. The overall advance to decline ratio is evenly poised on the BSE.
The BSE-Sensex and NSE-Nifty are trading higher, up by around 130 points and 40 points respectively. The BSE-Midcap and BSE-Smallcap indices are also trading higher by around 0.5% and 0.2% respectively. The Rupee is trading at 47.99 to the Dollar.
Aluminium stocks are trading lower led by Nalco and Hindalco. As per a leading business daily, Hindalco has received the consent of its lenders for the relaxation of its debt covenants. This will allow the company some flexibility in raising more funds in order to implement its huge capacity expansion plans in India over next three years. It may be noted that Hindalco had taken a loan of US$ 2.8 bn to fund the acquisition of Novelis. Under the new agreement, the payment schedule and the cost of debt remain unchanged although certain other requirements have been waived. The company plans to invest around Rs 260 bn in 3 years time for its greenfield and brownfield expansion projects in India. Thus, the company would be able to raise funds for the same.
Steel stocks are trading mixed. While Tata Steel and SAIL are trading higher, JSW Steel is trading lower. As per a leading business daily, Tata Steel plans to raise US$ 500 m through global depositary receipts (GDRs) in order to fund the brownfield expansion project at its Jamshedpur plant. The company is expanding the capacity at Jamshedpur by 2.9 m tones, which is likely to be completed by December 2010. As a matter of fact, Tata Steel had last year raised the capacity of the same plant from 5 m tonnes to 6.8 m tonnes. It is estimated that the expansion project will require investments of around Rs 90 bn. Despite the slowdown in the steel sector globally, expansion plan remains a high priority for the company as it expects its operating margins to be around 35%. Moreover, the company also expects the demand for steel in India to remain robust and is targeting a volumes growth of around 25% in the current fiscal.
The Indian markets remained firm during the previous two hours of trade as buying activity was witnessed across sectors. Currently, stocks from the power, pharma and banking spaces are leading the pack of gainers, while select software and energy stocks are trading weak. The overall advance to decline ratio is poised at 1.1 to 1 on the BSE.
The BSE-Sensex and NSE-Nifty are trading higher, up by around 70 points and 20 points respectively. The BSE-Midcap and BSE-Smallcap indices are also trading higher by around 0.3% and 0.4% respectively. The Rupee is trading at 47.99 to the Dollar.
Auto stocks are trading firm led by Ashok Leyland and Tata Motors. As per a leading business daily, Ashok Leyland has received Rs 3 bn order from the Tamil Nadu State Transport Corporation for the supply of 1,500 buses. Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme, funding is allotted to various state transport undertakings for purchase of up to 15,000 buses. Ashok Leyland has so far roped in an order of around 5,000 buses. This development will help Ashok Leyland to reduce its inventory, which had off late increased on account of poor demand of medium and heavy commercial vehicles. Further, the lower demand has led the company to reduce its capacity utilisation rate considerably in the 4QFY09. The company’s sales were down 53% YoY during the quarter.
As per a leading business daily, DLF has raised around Rs 10 bn through the sale of land and other assets across various cities in the past 4 to 5 weeks. Further, it plans to close deals worth Rs 5 bn in the coming weeks. Some of the assets that are put on the block were not marked by the company for any specific purpose, and it had not obtained licenses from the government for any specific use. The slump in the Indian real estate sector has made the company’s cash flow position vulnerable. It may be noted that DLF plans to raise around Rs 55 bn through sale of assets in order to halve its Rs 140 bn debt by end of the current fiscal year. Its debt to equity was more than 1 at the end of FY09. The stock, along with its peer Unitech, is trading marginally lower.
The Indian markets have opened the day’s proceedings on a negative note in line with its global peers. While pharma and power stocks are leading the pack of gainers, energy, software and FMCG stocks are trading lower. The overall decline to advance ratio stood at 1.9:1 on the NSE. As regards global markets, the US markets fell yesterday led by a worse-than-expected jobs report. The European markets too ended lower yesterday, while the Asian markets are trading in the red currently.
The BSE Sensex is trading down by around 20 points. The NSE Nifty is down 10 points. The BSE Midcap and the BSE Smallcap indices are trading lower. The rupee is trading at 47.93 to the dollar.
The economic survey announced yesterday recommended the decontrol of some sectors like sugar and fertiliser. The move is in order to put a tab on the rising Government subsidy bill. The survey has recommended changing the subsidy policy by giving government assistance directly to consumers instead of producers. Currently, the sugar sector is totally controlled by the government. The industry is witnessing tough times due to regulations whereby the raw material prices, quantity of sugar to be sold, and setting up of sugar plants are decided by the government. In case of fertiliser, the maximum retail prices of all major fertilisers provided to the farmers are fixed at cheaper rates while manufacturers are subsidised on the difference between cost of production and MRP. The fertiliser subsidy bill increased to Rs 1,170 bn in FY09 from Rs 457 bn in the previous fiscal, due to unprecedented rise in the prices of farm nutrients. Once industry decontrol is implemented, manufacturers will be free to produce different products and sell them at a reasonable price. If implemented, this move is likely to help in increasing farm productivity. With agriculture witnessing a decline in growth, the move is positive. The sugar and fertiliser stocks are trading mixed currently.
Glenmark has received first-to-file (FTF) status for three of its abbreviated new drug applications (ANDAs) that have a combined revenue of over US$ 2 bn in the US. The company has received FTF status for 'Zetia' 'Tarka' and 'Cutivate'. Currently, the litigation for all three filings is in various stages. If Glenmark wins, it will get a 180-day exclusive marketing period. During this period, the company can reap huge benefits on the sale of the generic drug, which is typically sold at a price ranging from 70-80% of the brand product price. During the last year, Glenmark's revenues from the US markets grew by 30% YoY. It has a total of 45 products in this region and has over 40 ANDAs in various stages of the approval process with the US FDA. Pharma stocks are trading mixed currently.
Govt. expects a 6.25% to 7.75% growth
At a time when the global economy has been hit by one of the worst recessions ever, the Indian economy managed to log in a respectable GDP growth of 6.7% during FY09. While this was lower than the average growth rate of 8.8% achieved during its high growth phase (FY04-FY08), the performance was still much better than the 5.5% growth achieved during the period from FY99 to FY03.
Source: Economic survey; E - Government estimate
In its Economic Survey for 2008-09, the government has stated that it expects the economy to grow by 6.25% to 7.75% during the current fiscal (FY10). However, it also believes that a lot will depend on the recovery and health of the global economy (especially the US) in the coming few months. "If the U.S. economy bottoms out by September, there could be a good possibility for the Indian economy repeating last financial year's performance," the survey says. It may be noted that expectations of the growth rate have been made on the basis that the country will have a normal monsoon, a clear picture of which will emerge only by the end of July.
A lot will also depend on how the government pushes second-generation reforms related to energy pricing, managing the fiscal deficit, tax structures, the public distribution system and education.
Inflation lower by 1.3%
Inflation as measured by the wholesale price index (WPI) fell 1.3% during the week ending June 20. It was lower by 1.14% in the week before. It may be noted that wholesale prices in India fell for the third successive week. However, prices of primary and manufacturing goods remained firm. The RBI governor Dr. D. Subbarao is of the belief that India is not in the grip of deflation as food price inflation still remain in double digits.
We believe that the inflation figure is unlikely to remain in the negative territory for long as fuel prices have been hiked recently which will percolate to food prices.
Showing posts with label Learn Trading. Show all posts
Showing posts with label Learn Trading. Show all posts
Saturday, July 4, 2009
Market Voices 03 July 2009
Market Voices 03 July 2009
Weak U.S and Asian markets rendered the mood negative in morning trade.
The Railway Budget did not throw any big positive surprises for the market.
The Sensex ended at 14,915.61 (provisional) with a big gain of 257 points or 1.75%. The Nifty ended at 4422.75, up 73.90 points or 1.7%.
Bank, capital goods, power and pharma stocks rallied sharply. Realty stocks found support during the final hour. Oil, auto, PSU and metal stocks too moved up in closing minutes. IT stocks remained subdued almost right through the session.
Midcap and smallcap stocks firmed up on late buying. The market breadth was neutral at close.
HDFC gained nearly 8%. Tata Steel shot up by over 5%. JP Associates, L&T, M&M, ICICI Bank, SBI and NTPC ended sharply higher today.
Reliance Infra, Bharti Airtel, Tata Power, Tata Motors, BHEL, Wipro and HUL also closed with notable gains.
Cipla, PNB, Power Grid, RPower, ABB, Axis Bank, GAIL India, Suzlon Energy, Unitech and Ambuja Cements closed with notable gains.
Cement stocks will find some support in the near run. Though a sustained rally will remain elusive, one can expect a few decent rallies in Ambuja Cements, Ultratech, India Cements, Birla Corporation and India Cements over the next few weeks.
There will be a few rounds of corrections as well and one looking at long term can use sharp falls to increase exposure to the sector.
Ashok Leyland (Rs 32) can moved up further before facing resistance.
One can go in for fresh buying at Rs 26 - 27 levels. Short term investors can exit the counter near Rs 36 and look to re-enter again at declines.
Investors looking for some sharp gains over a medium term can go in for infrastructure stocks. GMR Infra, IVRCL Infrastructure, Gammon Infrastructure, IRB Infrastructure, Nagarjuna Construction and HCC look good in the infrastructure space.
One can buy these stocks at sharp declines. The budget is likely to give a fairly good thrust to the sector and it is very likely that some of these stocks will see a significant upmove over the next few sessions.
PSU Oil stocks HPCL, BPCL and Indian Oil Corporation have some more upside in the near run. The recent hike in fuel prices will help the cause of these firms and with crude oil prices not expected to drop down to anywhere near their historic lows, a roll back of fuel prices looks highly unlikely in the very near term.
Educomp Solutions (Rs 4415) is likely to remain quite volatile. One looking to buy the stock can wait for now. Small quantities can be picked up at sharp declines. If there is any positive proposal in the forthcoming budget for firms engaged in software education, then one can expect a fairly sharp rally at the Educomp counter.
Orchid Chemicals & Pharmaceuticals has announced that it had received US FDA approval for Amlodipine Besylate Tablets. With this approval, Orchid's cumulative ANDA approval count has risen to 32 and the total ANDA filing count stands at 58.
The stock is up marginally at Rs 96 at present. One holding the stock with a long term view, can stay invested with a stop loss near its 52-week low of Rs 56.
Texmaco (down nearly 5% at Rs 114.50) has tumbled hitting a high of Rs 124 earlier in the day. One holding the stock with a long term plan can stay invested with a stop loss at Rs 95 for now. Even over a short to medium run, a modest rise is likely at the counter.
Integra Hindustan Control shares rose sharply to Rs 213 today on the back of a propsal in the rail budget to shore up security at 140 stations. The company, which manufactures electrical equipments, is likely to benefit from the said proposal. The stock has come off its high, but at Rs 208, remains in the positive territory with a sharp gain of 2.5%.
Bharat Earth Movers, Titagarh Wagons and Texmaco are up due largely to the proposal to buy 18,000 wagons in the current fiscal that ends in March 2010.
These three firms, besides engaging in manufacturing construction equipments, metro and defense equipments, are also engaged in manufacturing railway passenger coaches.
Container Corporation, Stone India, Texmaco and Titagarh Wagons have gained in strength this afternoon. With the railway minister proposing to step up infrastructure facilities across a large number of stations, several stocks from the infrastructure space have also surge higher this afternoon.
IRB Infrastructure (Rs 180) is likely to give fairly solid returns over a medium to long run. One holding the stock can stay invested and look to buy more of it at dips. Those looking at fresh exposure can try the stock at Rs 160 -165 levels.
Subex (Rs 67) can be picked up at 10 - 15% down from current levels if one is looking at long term. Though a rise from current levels is possible in the near run, the upmove will not sustain for long and hence one looking for fresh exposure would do well to wait for now.
Tata Steel (Rs 421) is a good buy at declines for long term. The stock is likley to see some weakness in the near run but its long term prospects remain fairly bright. SAIL, JSW Steel and Jindal Steel can also be picked up in a staggered way at dips.
Shares of rail wagon makers and steel and aluminium makers are likely to be in focus today with the possibility of the goverment boosting spending on long distance trains and introducing additional trains.
JSW Steel has announced that crude steel production rose 45% in the first quarter of 2009-10 to 14.09 lakh tonnes. The company has said that production of Rolled Products Flat and Long also rose sharply by 47% and 103% respectively. The JSW Steel stock is down by 1.4% at Rs 608.
India Infoline has entered into a strategic agreement with Interative Brokers LLC (USA). The move by the broking firm will enable its clients to get online access to trade in global securities.
The stock is currently trading at Rs 126, down 1.35% from its previous closing price. It had touched a low of Rs 34.40 in mid November last year.
Market Outlook
The market is expected to open on a cautious note with a negative bias. Though some buying is seen at lower levels, a sustained rally looks somewhat unlikely. A high level of volatility is in the offing.
Sector Watch
With the railway budget to be presented today, a fair amount of action is likely in metal, cement and capital goods stocks.
Oil stocks will be in focus once again. Technology and banking sectors may see stock specific action. A few realty stocks may move up but are likely to face stiff resistance at higher levels.
Scrip Watch
Glenmark Pharmaceuticals may attract attention following the company getting first-to-file status for three of its abbreviated new drug applications that have combined revenue of over $ 2 billion in the US.
NTPC is reported to be in discussions with Japanese funding agency Japan Bank for International Co-operation to raise green funds for its supercritical and ultra-supercritical power projects. The power counter is likely to see some action today.
Sun Pharmaceutical Industries may edge higher following the company obtaining a tentative approval for its generic Optivar. The solution is used for the treatment of the itching of the eyes associated with allergic conjunctivitis.
Macro and Market Factors
Weakness in global markets on the back of weak U.S employment data is likely cast its shadow on the Indian bourses this morning. With unemployment expected to rise further this year, hopes of an economic recovery in the U.S have been dented once again.
However, the focus back home will be on the railway budget to be presented today. Mamta Bannerji, for whom this will be the third budget, has said it will have human touch, raising expectations that there will not be any hike in railfare. With revenues taking a hit, there is a possibility of a fairly sharp hike in freigh charges.
With the general budget to be presented on Monday, the mood is likely to remain cautious for a better part of the session today.
Weak U.S and Asian markets rendered the mood negative in morning trade.
The Railway Budget did not throw any big positive surprises for the market.
The Sensex ended at 14,915.61 (provisional) with a big gain of 257 points or 1.75%. The Nifty ended at 4422.75, up 73.90 points or 1.7%.
Bank, capital goods, power and pharma stocks rallied sharply. Realty stocks found support during the final hour. Oil, auto, PSU and metal stocks too moved up in closing minutes. IT stocks remained subdued almost right through the session.
Midcap and smallcap stocks firmed up on late buying. The market breadth was neutral at close.
HDFC gained nearly 8%. Tata Steel shot up by over 5%. JP Associates, L&T, M&M, ICICI Bank, SBI and NTPC ended sharply higher today.
Reliance Infra, Bharti Airtel, Tata Power, Tata Motors, BHEL, Wipro and HUL also closed with notable gains.
Cipla, PNB, Power Grid, RPower, ABB, Axis Bank, GAIL India, Suzlon Energy, Unitech and Ambuja Cements closed with notable gains.
Cement stocks will find some support in the near run. Though a sustained rally will remain elusive, one can expect a few decent rallies in Ambuja Cements, Ultratech, India Cements, Birla Corporation and India Cements over the next few weeks.
There will be a few rounds of corrections as well and one looking at long term can use sharp falls to increase exposure to the sector.
Ashok Leyland (Rs 32) can moved up further before facing resistance.
One can go in for fresh buying at Rs 26 - 27 levels. Short term investors can exit the counter near Rs 36 and look to re-enter again at declines.
Investors looking for some sharp gains over a medium term can go in for infrastructure stocks. GMR Infra, IVRCL Infrastructure, Gammon Infrastructure, IRB Infrastructure, Nagarjuna Construction and HCC look good in the infrastructure space.
One can buy these stocks at sharp declines. The budget is likely to give a fairly good thrust to the sector and it is very likely that some of these stocks will see a significant upmove over the next few sessions.
PSU Oil stocks HPCL, BPCL and Indian Oil Corporation have some more upside in the near run. The recent hike in fuel prices will help the cause of these firms and with crude oil prices not expected to drop down to anywhere near their historic lows, a roll back of fuel prices looks highly unlikely in the very near term.
Educomp Solutions (Rs 4415) is likely to remain quite volatile. One looking to buy the stock can wait for now. Small quantities can be picked up at sharp declines. If there is any positive proposal in the forthcoming budget for firms engaged in software education, then one can expect a fairly sharp rally at the Educomp counter.
Orchid Chemicals & Pharmaceuticals has announced that it had received US FDA approval for Amlodipine Besylate Tablets. With this approval, Orchid's cumulative ANDA approval count has risen to 32 and the total ANDA filing count stands at 58.
The stock is up marginally at Rs 96 at present. One holding the stock with a long term view, can stay invested with a stop loss near its 52-week low of Rs 56.
Texmaco (down nearly 5% at Rs 114.50) has tumbled hitting a high of Rs 124 earlier in the day. One holding the stock with a long term plan can stay invested with a stop loss at Rs 95 for now. Even over a short to medium run, a modest rise is likely at the counter.
Integra Hindustan Control shares rose sharply to Rs 213 today on the back of a propsal in the rail budget to shore up security at 140 stations. The company, which manufactures electrical equipments, is likely to benefit from the said proposal. The stock has come off its high, but at Rs 208, remains in the positive territory with a sharp gain of 2.5%.
Bharat Earth Movers, Titagarh Wagons and Texmaco are up due largely to the proposal to buy 18,000 wagons in the current fiscal that ends in March 2010.
These three firms, besides engaging in manufacturing construction equipments, metro and defense equipments, are also engaged in manufacturing railway passenger coaches.
Container Corporation, Stone India, Texmaco and Titagarh Wagons have gained in strength this afternoon. With the railway minister proposing to step up infrastructure facilities across a large number of stations, several stocks from the infrastructure space have also surge higher this afternoon.
IRB Infrastructure (Rs 180) is likely to give fairly solid returns over a medium to long run. One holding the stock can stay invested and look to buy more of it at dips. Those looking at fresh exposure can try the stock at Rs 160 -165 levels.
Subex (Rs 67) can be picked up at 10 - 15% down from current levels if one is looking at long term. Though a rise from current levels is possible in the near run, the upmove will not sustain for long and hence one looking for fresh exposure would do well to wait for now.
Tata Steel (Rs 421) is a good buy at declines for long term. The stock is likley to see some weakness in the near run but its long term prospects remain fairly bright. SAIL, JSW Steel and Jindal Steel can also be picked up in a staggered way at dips.
Shares of rail wagon makers and steel and aluminium makers are likely to be in focus today with the possibility of the goverment boosting spending on long distance trains and introducing additional trains.
JSW Steel has announced that crude steel production rose 45% in the first quarter of 2009-10 to 14.09 lakh tonnes. The company has said that production of Rolled Products Flat and Long also rose sharply by 47% and 103% respectively. The JSW Steel stock is down by 1.4% at Rs 608.
India Infoline has entered into a strategic agreement with Interative Brokers LLC (USA). The move by the broking firm will enable its clients to get online access to trade in global securities.
The stock is currently trading at Rs 126, down 1.35% from its previous closing price. It had touched a low of Rs 34.40 in mid November last year.
Market Outlook
The market is expected to open on a cautious note with a negative bias. Though some buying is seen at lower levels, a sustained rally looks somewhat unlikely. A high level of volatility is in the offing.
Sector Watch
With the railway budget to be presented today, a fair amount of action is likely in metal, cement and capital goods stocks.
Oil stocks will be in focus once again. Technology and banking sectors may see stock specific action. A few realty stocks may move up but are likely to face stiff resistance at higher levels.
Scrip Watch
Glenmark Pharmaceuticals may attract attention following the company getting first-to-file status for three of its abbreviated new drug applications that have combined revenue of over $ 2 billion in the US.
NTPC is reported to be in discussions with Japanese funding agency Japan Bank for International Co-operation to raise green funds for its supercritical and ultra-supercritical power projects. The power counter is likely to see some action today.
Sun Pharmaceutical Industries may edge higher following the company obtaining a tentative approval for its generic Optivar. The solution is used for the treatment of the itching of the eyes associated with allergic conjunctivitis.
Macro and Market Factors
Weakness in global markets on the back of weak U.S employment data is likely cast its shadow on the Indian bourses this morning. With unemployment expected to rise further this year, hopes of an economic recovery in the U.S have been dented once again.
However, the focus back home will be on the railway budget to be presented today. Mamta Bannerji, for whom this will be the third budget, has said it will have human touch, raising expectations that there will not be any hike in railfare. With revenues taking a hit, there is a possibility of a fairly sharp hike in freigh charges.
With the general budget to be presented on Monday, the mood is likely to remain cautious for a better part of the session today.
Brokerage Recommendations 3 July 2009
Buy BEML with a target of Rs 1520 in 12-18 months, says Vijay Bhambwani, technical analyst, on CNBC TV18. The stock is currently trading at Rs 1033, down 4.51% on the BSE.
Hold Hindustan Zinc with target of Rs 800 in 9 months, says P Phani Shekhar of Angel Broking, on CNBC Awaaz. Buy more on dips, he adds.
In the infrastructure space, buy HCC, IVRCL Infra, Lanco Infrastructure and Nagarjuna Constructions for long-term gains, says Tejas Nadu, market expert, on NDTV Profit.
In the infrastructure space, buy Patel Engineering and IRB Infra, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. Both the stocks are showing good build-up, he adds.
Hold Nagarjuna Fertilisers with stop loss of Rs 39.50, says Salil Sharma, technical analyst, on CNBC Awaaz. The stock is at Rs 42.55, up 5.2% on the BSE.
Hold Power Grid for more than 18 months for excellent returns, says Gaurang Shah of Geojit BNP Paribas on Zee Business. Buy more on dips, he adds. The stock is currently trading at Rs 113.10, up 3.1% on the BSE.
Hold ACC with target of Rs 850-860, says Rahul Mohinder, technical analyst, on CNBC TV18. The stock is currently trading at Rs 766.05, up 0.6% on the BSE.
Hold India Cements with target of Rs 155-160, says Rahul Mohinder, technical analyst, on CNBC TV18. It has support at Rs 125-130, he adds. The stock is currently trading at Rs 137.25, up 2.1% on the BSE.
Hold GVK Power with target of Rs 56, says Ashu Bagri of SBICAP Securities on NDTV Profit. Keep stop loss of Rs 37, he adds. The stock is currently trading at Rs 43.35, up 4% on the BSE.
A few minutes before close, the market is looking very cheerful with both the major indices showing good gains. Europe is trading flat. Sensex is trading at 14908, up 247 points from its previous close, and Nifty is at 4421, up 72 points. CNX Midcap index is up 0.8% and BSE Smallcap index is up 0.6%. The market breadth is positive with advances at 665 against declines of 546 on the NSE.
Buy Tech Mahindra with target of Rs 800 and above, says Sudarshan Sukahni, technical analyst, on CNBC TV18. The stock is currently trading at Rs 760, down 1.4% on the BSE.
RNRL has filed special leave petition in the Supreme Court seeking judicial direction to RIL to honour gas supply obligations, reports NDTV Profit.
Buy Bartronics with target of Rs 215, says Prasad Kushe, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 170, he adds. The stock is currently trading at Rs 179, up 0.7% on the BSE.
Buy Nagarjuna Fertilisers with target of Rs 46-48 in one month, says Rahul Mohinder, technical analyst, on CNBC TV18. Keep stop loss of Rs 38, he adds. The stock is currently trading at Rs 41.65, up 3% on the BSE.
Buy Sesa Goa with target of Rs 220-240 after which it can go to Rs 285, says Prasad Kushe, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 175, he adds. The stock is currently trading at Rs 187.60, down 1.2% on the BSE.
Hold GAIL with target of Rs 368, says Ashu Bagri of SBICAP Securities on NDTV Profit. Keep stop loss of Rs 284, he adds. The stock is currently trading at Rs 312.70, up 0.7% on the BSE.
Hold Hindustan Zinc with target of Rs 685, says Salil Sharma, technical analyst, on CNBC Awaaz. Or hold for six months with stop loss of Rs 550, he adds. The stock is currently trading at Rs 608.50, up 0.03% on the BSE.
The market continues to rally, apparently unmoved by the railway budget. Sensex is trading at 14730, up 71 points from its previous close, and Nifty is at 4369, up 20 points. CNX Midcap index is up 0.1% and BSE Smallcap index is down 0.2%. The market breadth is negative with advances at 509 against declines of 694 on the NSE.
Hold ITI which has resistance at Rs 46 crossing which it can then show a good uptrend, says Mitesh Thacker, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 41.45, up 5% on the BSE.
This budget has provided an innovative way of functioning by including private investors, says Indian Prime Minister Manmohan Singh in his comments on the railway budget, reports CNBC Awaaz. It is a competent job done in quite a short time, he adds.
Hold ONGC which looks good on the charts, says Sudarshan Sukhani, technical analyst, on CNBC TV18. It will outperform even in the declining market, he adds. The stock is currently trading at Rs 1125.90, down 0.1% on the BSE.
Buy Educomp Solutions only on dips at Rs 3400-3500, says Rajesh Jain of SMC Global Securities on Zee Business. The stock is currently trading at Rs 4208, down 2% on the BSE.
There will be no change in freight tariff and passenger fares, says Mamata Banerjee at the conclusion of her budget presentation in Parliament, reports CNBC TV18. Minimum Tatkal fares have been reduced from Rs 150 to Rs 100, it adds.
Hold Prism Cement with target of Rs 46, says Ashu Bagri of SBICAP Securities on NDTV Profit. Keep stop loss of Rs 35, he adds. The stock is currently trading at Rs 39, down 1% on the BSE.
Hold Tata Steel with targets of Rs 450 and then 530, says Prakash Gaba, technical analyst, on CNBC Awaaz. It is in an uptrend now, he adds. The stock is currently trading at Rs 420, down 0.04% on the BSE.
Buy Reliance Industries on dips, says Gaurang Shah of Geojit BNP Paribas on Zee Business. Hold for long term with target of Rs 2450-2500, he adds. The stock is currently trading at Rs 2012.05, up 0.1% on the BSE.
Book profits in Kalindee Rail at Rs 235, says Salil Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 227.70, up 1.9% on the BSE.
Hold Titagarh Wagons with trailing stop loss of Rs 400, says Rajesh Jain of SMC Global Securities on Zee Business. The stock is currently trading at Rs 446.50, up 1.6% on the BSE.
Hold TCS with target of Rs 455 in six months, says Salil Sharma, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 340, he adds. The stock is currently trading at Rs 389, down 0.3% on the BSE.
Hold Reliance Industries which is trading in a range now, says Mitesh Thacker, technical analyst, on CNBC Awaaz. It has support at Rs 1950-1960 and resistance at Rs 2120, he adds. The stock is currently trading at Rs 2012.40, up 0.1% on the BSE.
There is uncertainty in the market ahead of the rail and general budget, says Gaurang Shah of Geojit BNP Paribas on Zee Business. He advises those invested for medium term and who cannot bear the volatility to book profits.
Hold Jyoti Structures with target of Rs 170, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss below Rs 125 on day-end closing basis, she adds. The stock is currently trading at Rs 147.10, up 5.1% on the BSE.
Buy IRB Infra on dips with target of Rs 200, says Ashu Madan of Religare on CNBC Awaaz. The stock is currently trading at Rs 180, up 3.7% on the BSE.
An hour into opening, the market is trading firm. Rail stocks are rallying ahead of the railway budget to be announced at noon. Sensex is trading at 14688, up 29 points from its previous close, and Nifty is at 4357, up 8 points. CNX Midcap index is up 0.2% and BSE Smallcap index is up 0.2%. The market breadth is negative with advances at 537 against declines of 561 on the NSE.
Buy Chambal Fertilisers on dips with short-term target of Rs 85, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 55, she adds. The stock is currently trading at Rs 66.20, up 0.9% on the BSE.
Buy NIIT Ltd and Aptech for good returns, says Mitesh Thacker, technical analyst, on CNBC Awaaz. These stocks are in a good uptrend now, he adds.
Buy ONGC with target of Rs 1225-1230, says Devangshu Dutta, market expert, on CNBC TV18. Keep stop loss of Rs 1100, he adds. The stock is currently trading at Rs 1105.85, down 1.8% on the BSE.
Buy Nagarjuna Fertilisers on dips with short-term target of Rs 55, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 34, she adds. The stock is currently trading at Rs 40.80, up 0.9% on the BSE.
Sell Pantaloon Retail with intra-day target of Rs 295, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 310, he adds. The stock is currently trading at Rs 306.95, down 0.4% on the BSE.
Book profits in rail stocks, says Ashu Madan of Religare on CNBC Awaaz. He advises reviewing these stocks post-budget and then only re-entering them.
Sell Tata Steel with intra-day target of Rs 400, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 423, he adds. The stock is currently trading at Rs 415.45, down 1.1% on the BSE. » Send to friends
10:09 AM - Buy Lanco Infra with intra-day target of Rs 368, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 357, he adds. The stock is currently trading at Rs 364.50, up 1.8% on the BSE.
Sell BHEL at Rs 2153 with target of Rs 2117, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 2170, she adds. The stock is currently trading at Rs 2157.30, up 0.3% on the BSE.
The market opens on a stable note, on the last trading day ahead of the general budget. Today, by noon the railway budget is expected to be announced. Earlier, US markets sold off on poor job numbers and Asia is trading mixed. Sensex is trading at 14612, down 46 points from its previous close, and Nifty is at 4331, down 17 points. CNX Midcap index is up 0.4% and BSE Smallcap index is down 0.1%. The market breadth is negative with advances at 133 against declines of 374 on the NSE.
Buy Reliance Power with intra-day target of Rs 180, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 172, he adds. The stock is at Rs 172.80, up 0.8% on the BSE.
Buy L&T at Rs 1567 with target of Rs 1600, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 1545, she adds. The stock is at Rs 1563.60, down 0.7% on the BSE.
Hold Hindustan Zinc with target of Rs 800 in 9 months, says P Phani Shekhar of Angel Broking, on CNBC Awaaz. Buy more on dips, he adds.
In the infrastructure space, buy HCC, IVRCL Infra, Lanco Infrastructure and Nagarjuna Constructions for long-term gains, says Tejas Nadu, market expert, on NDTV Profit.
In the infrastructure space, buy Patel Engineering and IRB Infra, says Gaurang Shah of Geojit BNP Paribas on CNBC Awaaz. Both the stocks are showing good build-up, he adds.
Hold Nagarjuna Fertilisers with stop loss of Rs 39.50, says Salil Sharma, technical analyst, on CNBC Awaaz. The stock is at Rs 42.55, up 5.2% on the BSE.
Hold Power Grid for more than 18 months for excellent returns, says Gaurang Shah of Geojit BNP Paribas on Zee Business. Buy more on dips, he adds. The stock is currently trading at Rs 113.10, up 3.1% on the BSE.
Hold ACC with target of Rs 850-860, says Rahul Mohinder, technical analyst, on CNBC TV18. The stock is currently trading at Rs 766.05, up 0.6% on the BSE.
Hold India Cements with target of Rs 155-160, says Rahul Mohinder, technical analyst, on CNBC TV18. It has support at Rs 125-130, he adds. The stock is currently trading at Rs 137.25, up 2.1% on the BSE.
Hold GVK Power with target of Rs 56, says Ashu Bagri of SBICAP Securities on NDTV Profit. Keep stop loss of Rs 37, he adds. The stock is currently trading at Rs 43.35, up 4% on the BSE.
A few minutes before close, the market is looking very cheerful with both the major indices showing good gains. Europe is trading flat. Sensex is trading at 14908, up 247 points from its previous close, and Nifty is at 4421, up 72 points. CNX Midcap index is up 0.8% and BSE Smallcap index is up 0.6%. The market breadth is positive with advances at 665 against declines of 546 on the NSE.
Buy Tech Mahindra with target of Rs 800 and above, says Sudarshan Sukahni, technical analyst, on CNBC TV18. The stock is currently trading at Rs 760, down 1.4% on the BSE.
RNRL has filed special leave petition in the Supreme Court seeking judicial direction to RIL to honour gas supply obligations, reports NDTV Profit.
Buy Bartronics with target of Rs 215, says Prasad Kushe, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 170, he adds. The stock is currently trading at Rs 179, up 0.7% on the BSE.
Buy Nagarjuna Fertilisers with target of Rs 46-48 in one month, says Rahul Mohinder, technical analyst, on CNBC TV18. Keep stop loss of Rs 38, he adds. The stock is currently trading at Rs 41.65, up 3% on the BSE.
Buy Sesa Goa with target of Rs 220-240 after which it can go to Rs 285, says Prasad Kushe, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 175, he adds. The stock is currently trading at Rs 187.60, down 1.2% on the BSE.
Hold GAIL with target of Rs 368, says Ashu Bagri of SBICAP Securities on NDTV Profit. Keep stop loss of Rs 284, he adds. The stock is currently trading at Rs 312.70, up 0.7% on the BSE.
Hold Hindustan Zinc with target of Rs 685, says Salil Sharma, technical analyst, on CNBC Awaaz. Or hold for six months with stop loss of Rs 550, he adds. The stock is currently trading at Rs 608.50, up 0.03% on the BSE.
The market continues to rally, apparently unmoved by the railway budget. Sensex is trading at 14730, up 71 points from its previous close, and Nifty is at 4369, up 20 points. CNX Midcap index is up 0.1% and BSE Smallcap index is down 0.2%. The market breadth is negative with advances at 509 against declines of 694 on the NSE.
Hold ITI which has resistance at Rs 46 crossing which it can then show a good uptrend, says Mitesh Thacker, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 41.45, up 5% on the BSE.
This budget has provided an innovative way of functioning by including private investors, says Indian Prime Minister Manmohan Singh in his comments on the railway budget, reports CNBC Awaaz. It is a competent job done in quite a short time, he adds.
Hold ONGC which looks good on the charts, says Sudarshan Sukhani, technical analyst, on CNBC TV18. It will outperform even in the declining market, he adds. The stock is currently trading at Rs 1125.90, down 0.1% on the BSE.
Buy Educomp Solutions only on dips at Rs 3400-3500, says Rajesh Jain of SMC Global Securities on Zee Business. The stock is currently trading at Rs 4208, down 2% on the BSE.
There will be no change in freight tariff and passenger fares, says Mamata Banerjee at the conclusion of her budget presentation in Parliament, reports CNBC TV18. Minimum Tatkal fares have been reduced from Rs 150 to Rs 100, it adds.
Hold Prism Cement with target of Rs 46, says Ashu Bagri of SBICAP Securities on NDTV Profit. Keep stop loss of Rs 35, he adds. The stock is currently trading at Rs 39, down 1% on the BSE.
Hold Tata Steel with targets of Rs 450 and then 530, says Prakash Gaba, technical analyst, on CNBC Awaaz. It is in an uptrend now, he adds. The stock is currently trading at Rs 420, down 0.04% on the BSE.
Buy Reliance Industries on dips, says Gaurang Shah of Geojit BNP Paribas on Zee Business. Hold for long term with target of Rs 2450-2500, he adds. The stock is currently trading at Rs 2012.05, up 0.1% on the BSE.
Book profits in Kalindee Rail at Rs 235, says Salil Sharma, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 227.70, up 1.9% on the BSE.
Hold Titagarh Wagons with trailing stop loss of Rs 400, says Rajesh Jain of SMC Global Securities on Zee Business. The stock is currently trading at Rs 446.50, up 1.6% on the BSE.
Hold TCS with target of Rs 455 in six months, says Salil Sharma, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 340, he adds. The stock is currently trading at Rs 389, down 0.3% on the BSE.
Hold Reliance Industries which is trading in a range now, says Mitesh Thacker, technical analyst, on CNBC Awaaz. It has support at Rs 1950-1960 and resistance at Rs 2120, he adds. The stock is currently trading at Rs 2012.40, up 0.1% on the BSE.
There is uncertainty in the market ahead of the rail and general budget, says Gaurang Shah of Geojit BNP Paribas on Zee Business. He advises those invested for medium term and who cannot bear the volatility to book profits.
Hold Jyoti Structures with target of Rs 170, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss below Rs 125 on day-end closing basis, she adds. The stock is currently trading at Rs 147.10, up 5.1% on the BSE.
Buy IRB Infra on dips with target of Rs 200, says Ashu Madan of Religare on CNBC Awaaz. The stock is currently trading at Rs 180, up 3.7% on the BSE.
An hour into opening, the market is trading firm. Rail stocks are rallying ahead of the railway budget to be announced at noon. Sensex is trading at 14688, up 29 points from its previous close, and Nifty is at 4357, up 8 points. CNX Midcap index is up 0.2% and BSE Smallcap index is up 0.2%. The market breadth is negative with advances at 537 against declines of 561 on the NSE.
Buy Chambal Fertilisers on dips with short-term target of Rs 85, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 55, she adds. The stock is currently trading at Rs 66.20, up 0.9% on the BSE.
Buy NIIT Ltd and Aptech for good returns, says Mitesh Thacker, technical analyst, on CNBC Awaaz. These stocks are in a good uptrend now, he adds.
Buy ONGC with target of Rs 1225-1230, says Devangshu Dutta, market expert, on CNBC TV18. Keep stop loss of Rs 1100, he adds. The stock is currently trading at Rs 1105.85, down 1.8% on the BSE.
Buy Nagarjuna Fertilisers on dips with short-term target of Rs 55, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 34, she adds. The stock is currently trading at Rs 40.80, up 0.9% on the BSE.
Sell Pantaloon Retail with intra-day target of Rs 295, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 310, he adds. The stock is currently trading at Rs 306.95, down 0.4% on the BSE.
Book profits in rail stocks, says Ashu Madan of Religare on CNBC Awaaz. He advises reviewing these stocks post-budget and then only re-entering them.
Sell Tata Steel with intra-day target of Rs 400, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 423, he adds. The stock is currently trading at Rs 415.45, down 1.1% on the BSE. » Send to friends
10:09 AM - Buy Lanco Infra with intra-day target of Rs 368, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 357, he adds. The stock is currently trading at Rs 364.50, up 1.8% on the BSE.
Sell BHEL at Rs 2153 with target of Rs 2117, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 2170, she adds. The stock is currently trading at Rs 2157.30, up 0.3% on the BSE.
The market opens on a stable note, on the last trading day ahead of the general budget. Today, by noon the railway budget is expected to be announced. Earlier, US markets sold off on poor job numbers and Asia is trading mixed. Sensex is trading at 14612, down 46 points from its previous close, and Nifty is at 4331, down 17 points. CNX Midcap index is up 0.4% and BSE Smallcap index is down 0.1%. The market breadth is negative with advances at 133 against declines of 374 on the NSE.
Buy Reliance Power with intra-day target of Rs 180, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 172, he adds. The stock is at Rs 172.80, up 0.8% on the BSE.
Buy L&T at Rs 1567 with target of Rs 1600, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 1545, she adds. The stock is at Rs 1563.60, down 0.7% on the BSE.
Closing Bell 2 July 2009
Closing Bell 2 July 2009
After weathering the alternate bouts of buying and selling activity through the day, the Indian markets closed marginally higher than yesterday’s levels. The BSE Sensex and NSE Nifty ended higher, up by around 13 points and 8 points respectively. The stocks from the mid-cap and the small-cap spaces ended higher, up by around 0.33% and 0.74% respectively. Buying activity was witnessed among the stocks from the metals, realty and healthcare sectors. Engineering and auto stocks were at the receiving end. The overall market breadth was positive, with gainers outnumbering losers in ratio of 1.2 to 1 on the BSE.
Most of the Asian markets ended the day on a weak note. The European markets are also trading weak currently. The Rupee was trading at 47.91 against the US Dollar at the time of writing.
Steel majors like SAIL, Ispat and Jindal Steel are planning to raise the price for various products by 2-5%, on account of growing raw-material prices. Many companies increased their prices in the months of May and June, and the ones that did not are reviewing the situation for the possibility of a price hike. It is worth noting that steel prices fell sharply last year due to a lack of demand on account of the economic slowdown. Domestic companies are seeing a slight revival of demand in the domestic market from sectors like infrastructure, rural housing and automobile. The stocks from steel sector ended the day on a positive note.
The global downturn has had a severe impact on the billing rates for major Indian IT companies like TCS, Infosys and Wipro. Billing rates for new as well as existing clients are estimated to be down by around 30% to 40% touching rock-bottom of US$ 16 per hour. To make matters worse, despite these low billing rates, the companies have not seen any corresponding improvement in the deals inflow. According to Gartner, on account of uncertainty, IT budget constraints and subdued market sentiments, the prices of IT services will keep declining till 2010. Moreover, international companies like Accenture, which are known for delivering premium-priced high-end IT services, are also venturing into low-end IT ventures moreover at a decreased price level. All this will result in a dent in the Indian IT sector, which was growing at a stupendous rate of about 30% before the crisis. Nevertheless, the silver lining in the cloud is that companies have still been able to maintain their topline through proactive cost-containment measures. After trading most of the day in the negative, the stocks from this sector closed in the green.
Economic recession in the developed countries left Indian exports with less takers, resulting in a decrease in merchandise export by 29.2% in May. The Finance Ministry seems to accept that the three stimulus packages have not done much to revive the exports. The Union budget is expected to provide some respite to the sector in terms of fringe benefit taxes and interest subsidies.
The Indian markets slipped into the red during the previous two hours of trade on account of a spurt in selling activity across the index heavyweights. Stocks from the banking, engineering and auto sectors are leading the pack of losers, while select stocks from energy, metals and power sectors are trading firm. The overall decline to advance ratio is poised at 1.3 to 1 on the BSE.
The BSE Sensex and NSE Nifty are trading lower, down by 100 points and 30 points respectively. However, the BSE Midcap and BSE Smallcap indices are trading flat. The Rupee is trading at 47.87 to the Dollar.
Telecom stocks are trading mixed. While Reliance Communications (Rcom) and Bharti Airtel are trading lower, MTNL is trading higher. As per a leading business daily, Rcom plans to outsource the management of its broadband and fixed-line services in an attempt to reduce costs. It is believed that the company is already in discussions with interested parties for this contract, which is likely to be valued over US$ 1 bn and would be finalised in the next three months. It may be noted that Rcom had outsourced the management of its wireless networks across India to Alcatel-Lucent Managed Solutions, a Joint Venture between Alcatel and Rcom last year. This had resulted in Rcom not only saving significantly on costs, but also to achieving operational discipline. Interestingly, Rcom will not be the only company to outsource management of its broadband and fixed-line services as Bharti Airtel has done so recently. Rcom's broadband and fixed lines services segment contributed around 35% of the topline in FY09.
FMCG stocks are trading mixed. While Colgate and GSK Consumer are trading higher, HUL is trading lower. As per a leading business daily, GSK Consumer is planning to sell it's over the counter (OTC) products through modern retail in India. OTC products are marketed under allopathic and ayurvedic categories, wherein allopathic OTCs require a drug license, while ayurvedic ones can be sold without a license. It may be noted that the company already sells its health food drinks brands through modern retail routes. As a matter of fact, modern retail contributed around 4.4% of the sales in CY08 and is estimated to go up to 10% by CY10. Also GSK Consumer's OTC products like Eno and Iodex command a household penetration of 9% and 10% respectively in the Metros. Thus this development will enable the company to increase the sales of OTC products.
Although in the green, the Indian markets remained volatile during the previous two hours of trade on the back of alternate bouts of buying and selling activity. Stocks from the energy, metal and pharma sectors led the indices higher during this period, while select software and engineering stocks are trading weak. The overall advance to decline ratio was poised at 2.1 to 1 on the BSE.
The BSE-Sensex and NSE-Nifty are trading higher, up by around 70 points and 40 points respectively. The BSE-Midcap and BSE-Smallcap indices are also trading higher by around 1.2% and 1.8% respectively. The Rupee is trading at 47.79 to the US Dollar.
As per a leading business daily, Zee Entertainment's flagship Hindi general entertainment channel (GEC), Zee TV has topped the list with the highest viewership for the week ended 28 June, according to the viewership rating agency, TAM Media Research. The channel's gross rating points (GRP) were 243.1, ahead of Colors (242.8 GRPs) and Star Plus (218.5 GRPs). It may be noted that advertisers slot their TV advertisements on the basis of these ratings. The Hindi GEC genre accounts for nearly 50% of the Rs 80 bn TV advertising revenues annually. In fact, the bulk of this revenue is generated by the top players namely Star Plus, Zee TV and Colors. Zee TV accounted for around 19% share of the Hindi GEC space during FY09. However, sustaining these ratings is highly difficult considering the changing views and preferences of the target consumers. Media stocks are currently trading firm.
As per a leading business daily, Reliance Industries (RIL) is expected to move Supreme Court for over its gas supply dispute with RNRL. It may be noted that the Bombay High Court has ordered RIL to supply gas at a price around 44% lower than current prevailing gas prices. RIL has been asked to enter into an agreement with RNRL to supply 28 m metric standard cubic meter (mmscmd) of gas per day, at a fixed price of US$ 2.34 for a period of 17 years. Further, government rules also mention that the company should supply the gas to other sectors on a priority basis. These rulings give RIL little room for discretion. The stock of RIL is trading marginally lower.
The Indian markets have opened the day's proceedings on a negative note as a rise in petrol prices has led to inflation worries. Energy stocks are leading the pack of gainers. Telecom, power and metal stocks are also witnessing buying activity. The overall advance to decline ratio stood at 1.3: 1 on the NSE. As regards global markets, the US and the European markets ended higher yesterday, while the Asian markets are also trading in the green currently.
The BSE Sensex is trading down by around 25 points. The NSE Nifty is down 10 points. The BSE Midcap is trading down 1%, while the BSE Smallcap index is trading flat. The rupee is trading at 47.7 to the dollar.
Hindalco Industries is planning to trim its overseas operations and also restructure its capital expenditure plans in India in an effort to stabilise operations. The company is closing its sheet mill at Rogerstone in the UK and two more Novelis mills in Canada. Hindalco is also looking to recast it capital expenditure of Rs 250 to Rs 300 bn over the next four years. With slowdown being witnessed in demand, the company is expecting a savings of 15-16% on its capex by planning additional capacity with the same capex. The company during FY09 saw a drop of 85% YoY in its consolidated net profits. This was mainly on account of Novelis, whose net loss had widened to US$ 1.9 bn from US$ 117 m recorded during FY08. The group already has a consolidated debt of US$ 5.2 bn and any further debt could pressurise its balance sheet. Further, on account of lower LME prices coupled with a fall in demand for aluminium, the company is witnessing challenging times. Metal stocks are trading firm.
As per a leading business daily, Tech Mahindra's open offer which ended yesterday got a poor response from the investors. The company had bought a 31% stake of new equity in Mahindra Satyam in April, and on June 12 launched an open offer to buy upto 20% in the open market at Rs 58 a share to take its stake to 51%. The poor response was on account of the market price being higher at Rs 70 as compared to the offer price. Tech Mahindra now has an option to go for a second round of preferential allotment of shares to gain a majority stake in Mahindra Satyam. The money raised would be infused into the acquired company to strengthen its balance sheet. Tech Mahindra has just around Rs 5.5 bn of cash on its books but needs to pay up around Rs 28 bn for picking up a 51% stake. This may put pressure on its balance sheet. Software stocks are trading mixed.
Fuel prices hiked, not freed
(Pre-Open)
There are no signs of the much anticipated deregulation of fuel prices. The government has instead hiked the prices of transport fuels - petrol by Rs 4 per litre and diesel by Rs 2 per litre. However, the prices of domestic LPG and Kerosene have been left unchanged.
With global crude prices climbing again, this move comes as no surprise. The public sector oil marketing companies (OMCs) - Indian oil, BPCL and HPCL- are unable to recover their input costs. In fact, they were likely to run up an under recovery bill of Rs 700 bn per year. This hike will save them around Rs 130 bn.
It may be noted that this is a partial measure. The OMCs will still incur under recoveries of Rs 2 per litre on petrol and Rs 1.62 per litre on diesel. Moreover, the prices of Kerosene and LPG have been left untouched as it has a more direct impact on the common man. Under recoveries on these fuels amount to Rs 15 per litre and Rs 93 per cylinder respectively. In fact, as per a leading business daily, Petroleum Secretary R S Pandey himself has called this an 'ad-hoc' measure. We believe the ideal solution is for the government to genuinely deregulate fuel prices and let market forces determine the price levels. Simultaneously, it should provide targeted subsidies to the genuinely needy. To its credit, the government is taking some concrete steps towards this. It has begun the Unique Identity project, to be headed by Mr. Nandan Nilekani.
However, India's top oil & gas producer ONGC, in its analyst meet, said that it is unrealistic to expect complete deregulation. They should know, after all they foot a part of under recovery bill.
India outsources to itself
The cliché of US companies outsourcing their call centre jobs to India is so widespread that there are several Hollywood movies made on this theme. With the US in recession though, it may all be changing. As per the Wall Street Journal, India's call centers are increasingly signing up Indian clients. Although, India outsources business to the tune of US$ 12 a merely 2.4% of the worldwide figure of US$ 500 bn, it is expected to contribute almost 15% of the pie by 2020.
It may be noted that US outsourcing to India was powered mainly by the relatively lower wages here. Interestingly, the outsourcing originating from within India is based on the difference in wages between urban and rural India. We believe this is a classic case of 'comparative advantage' - the ability of a person to produce a good or service at a lower marginal cost and opportunity cost than another person. Given the cost of living in the Indian metros, this trend is likely to continue.
After weathering the alternate bouts of buying and selling activity through the day, the Indian markets closed marginally higher than yesterday’s levels. The BSE Sensex and NSE Nifty ended higher, up by around 13 points and 8 points respectively. The stocks from the mid-cap and the small-cap spaces ended higher, up by around 0.33% and 0.74% respectively. Buying activity was witnessed among the stocks from the metals, realty and healthcare sectors. Engineering and auto stocks were at the receiving end. The overall market breadth was positive, with gainers outnumbering losers in ratio of 1.2 to 1 on the BSE.
Most of the Asian markets ended the day on a weak note. The European markets are also trading weak currently. The Rupee was trading at 47.91 against the US Dollar at the time of writing.
Steel majors like SAIL, Ispat and Jindal Steel are planning to raise the price for various products by 2-5%, on account of growing raw-material prices. Many companies increased their prices in the months of May and June, and the ones that did not are reviewing the situation for the possibility of a price hike. It is worth noting that steel prices fell sharply last year due to a lack of demand on account of the economic slowdown. Domestic companies are seeing a slight revival of demand in the domestic market from sectors like infrastructure, rural housing and automobile. The stocks from steel sector ended the day on a positive note.
The global downturn has had a severe impact on the billing rates for major Indian IT companies like TCS, Infosys and Wipro. Billing rates for new as well as existing clients are estimated to be down by around 30% to 40% touching rock-bottom of US$ 16 per hour. To make matters worse, despite these low billing rates, the companies have not seen any corresponding improvement in the deals inflow. According to Gartner, on account of uncertainty, IT budget constraints and subdued market sentiments, the prices of IT services will keep declining till 2010. Moreover, international companies like Accenture, which are known for delivering premium-priced high-end IT services, are also venturing into low-end IT ventures moreover at a decreased price level. All this will result in a dent in the Indian IT sector, which was growing at a stupendous rate of about 30% before the crisis. Nevertheless, the silver lining in the cloud is that companies have still been able to maintain their topline through proactive cost-containment measures. After trading most of the day in the negative, the stocks from this sector closed in the green.
Economic recession in the developed countries left Indian exports with less takers, resulting in a decrease in merchandise export by 29.2% in May. The Finance Ministry seems to accept that the three stimulus packages have not done much to revive the exports. The Union budget is expected to provide some respite to the sector in terms of fringe benefit taxes and interest subsidies.
The Indian markets slipped into the red during the previous two hours of trade on account of a spurt in selling activity across the index heavyweights. Stocks from the banking, engineering and auto sectors are leading the pack of losers, while select stocks from energy, metals and power sectors are trading firm. The overall decline to advance ratio is poised at 1.3 to 1 on the BSE.
The BSE Sensex and NSE Nifty are trading lower, down by 100 points and 30 points respectively. However, the BSE Midcap and BSE Smallcap indices are trading flat. The Rupee is trading at 47.87 to the Dollar.
Telecom stocks are trading mixed. While Reliance Communications (Rcom) and Bharti Airtel are trading lower, MTNL is trading higher. As per a leading business daily, Rcom plans to outsource the management of its broadband and fixed-line services in an attempt to reduce costs. It is believed that the company is already in discussions with interested parties for this contract, which is likely to be valued over US$ 1 bn and would be finalised in the next three months. It may be noted that Rcom had outsourced the management of its wireless networks across India to Alcatel-Lucent Managed Solutions, a Joint Venture between Alcatel and Rcom last year. This had resulted in Rcom not only saving significantly on costs, but also to achieving operational discipline. Interestingly, Rcom will not be the only company to outsource management of its broadband and fixed-line services as Bharti Airtel has done so recently. Rcom's broadband and fixed lines services segment contributed around 35% of the topline in FY09.
FMCG stocks are trading mixed. While Colgate and GSK Consumer are trading higher, HUL is trading lower. As per a leading business daily, GSK Consumer is planning to sell it's over the counter (OTC) products through modern retail in India. OTC products are marketed under allopathic and ayurvedic categories, wherein allopathic OTCs require a drug license, while ayurvedic ones can be sold without a license. It may be noted that the company already sells its health food drinks brands through modern retail routes. As a matter of fact, modern retail contributed around 4.4% of the sales in CY08 and is estimated to go up to 10% by CY10. Also GSK Consumer's OTC products like Eno and Iodex command a household penetration of 9% and 10% respectively in the Metros. Thus this development will enable the company to increase the sales of OTC products.
Although in the green, the Indian markets remained volatile during the previous two hours of trade on the back of alternate bouts of buying and selling activity. Stocks from the energy, metal and pharma sectors led the indices higher during this period, while select software and engineering stocks are trading weak. The overall advance to decline ratio was poised at 2.1 to 1 on the BSE.
The BSE-Sensex and NSE-Nifty are trading higher, up by around 70 points and 40 points respectively. The BSE-Midcap and BSE-Smallcap indices are also trading higher by around 1.2% and 1.8% respectively. The Rupee is trading at 47.79 to the US Dollar.
As per a leading business daily, Zee Entertainment's flagship Hindi general entertainment channel (GEC), Zee TV has topped the list with the highest viewership for the week ended 28 June, according to the viewership rating agency, TAM Media Research. The channel's gross rating points (GRP) were 243.1, ahead of Colors (242.8 GRPs) and Star Plus (218.5 GRPs). It may be noted that advertisers slot their TV advertisements on the basis of these ratings. The Hindi GEC genre accounts for nearly 50% of the Rs 80 bn TV advertising revenues annually. In fact, the bulk of this revenue is generated by the top players namely Star Plus, Zee TV and Colors. Zee TV accounted for around 19% share of the Hindi GEC space during FY09. However, sustaining these ratings is highly difficult considering the changing views and preferences of the target consumers. Media stocks are currently trading firm.
As per a leading business daily, Reliance Industries (RIL) is expected to move Supreme Court for over its gas supply dispute with RNRL. It may be noted that the Bombay High Court has ordered RIL to supply gas at a price around 44% lower than current prevailing gas prices. RIL has been asked to enter into an agreement with RNRL to supply 28 m metric standard cubic meter (mmscmd) of gas per day, at a fixed price of US$ 2.34 for a period of 17 years. Further, government rules also mention that the company should supply the gas to other sectors on a priority basis. These rulings give RIL little room for discretion. The stock of RIL is trading marginally lower.
The Indian markets have opened the day's proceedings on a negative note as a rise in petrol prices has led to inflation worries. Energy stocks are leading the pack of gainers. Telecom, power and metal stocks are also witnessing buying activity. The overall advance to decline ratio stood at 1.3: 1 on the NSE. As regards global markets, the US and the European markets ended higher yesterday, while the Asian markets are also trading in the green currently.
The BSE Sensex is trading down by around 25 points. The NSE Nifty is down 10 points. The BSE Midcap is trading down 1%, while the BSE Smallcap index is trading flat. The rupee is trading at 47.7 to the dollar.
Hindalco Industries is planning to trim its overseas operations and also restructure its capital expenditure plans in India in an effort to stabilise operations. The company is closing its sheet mill at Rogerstone in the UK and two more Novelis mills in Canada. Hindalco is also looking to recast it capital expenditure of Rs 250 to Rs 300 bn over the next four years. With slowdown being witnessed in demand, the company is expecting a savings of 15-16% on its capex by planning additional capacity with the same capex. The company during FY09 saw a drop of 85% YoY in its consolidated net profits. This was mainly on account of Novelis, whose net loss had widened to US$ 1.9 bn from US$ 117 m recorded during FY08. The group already has a consolidated debt of US$ 5.2 bn and any further debt could pressurise its balance sheet. Further, on account of lower LME prices coupled with a fall in demand for aluminium, the company is witnessing challenging times. Metal stocks are trading firm.
As per a leading business daily, Tech Mahindra's open offer which ended yesterday got a poor response from the investors. The company had bought a 31% stake of new equity in Mahindra Satyam in April, and on June 12 launched an open offer to buy upto 20% in the open market at Rs 58 a share to take its stake to 51%. The poor response was on account of the market price being higher at Rs 70 as compared to the offer price. Tech Mahindra now has an option to go for a second round of preferential allotment of shares to gain a majority stake in Mahindra Satyam. The money raised would be infused into the acquired company to strengthen its balance sheet. Tech Mahindra has just around Rs 5.5 bn of cash on its books but needs to pay up around Rs 28 bn for picking up a 51% stake. This may put pressure on its balance sheet. Software stocks are trading mixed.
Fuel prices hiked, not freed
(Pre-Open)
There are no signs of the much anticipated deregulation of fuel prices. The government has instead hiked the prices of transport fuels - petrol by Rs 4 per litre and diesel by Rs 2 per litre. However, the prices of domestic LPG and Kerosene have been left unchanged.
With global crude prices climbing again, this move comes as no surprise. The public sector oil marketing companies (OMCs) - Indian oil, BPCL and HPCL- are unable to recover their input costs. In fact, they were likely to run up an under recovery bill of Rs 700 bn per year. This hike will save them around Rs 130 bn.
It may be noted that this is a partial measure. The OMCs will still incur under recoveries of Rs 2 per litre on petrol and Rs 1.62 per litre on diesel. Moreover, the prices of Kerosene and LPG have been left untouched as it has a more direct impact on the common man. Under recoveries on these fuels amount to Rs 15 per litre and Rs 93 per cylinder respectively. In fact, as per a leading business daily, Petroleum Secretary R S Pandey himself has called this an 'ad-hoc' measure. We believe the ideal solution is for the government to genuinely deregulate fuel prices and let market forces determine the price levels. Simultaneously, it should provide targeted subsidies to the genuinely needy. To its credit, the government is taking some concrete steps towards this. It has begun the Unique Identity project, to be headed by Mr. Nandan Nilekani.
However, India's top oil & gas producer ONGC, in its analyst meet, said that it is unrealistic to expect complete deregulation. They should know, after all they foot a part of under recovery bill.
India outsources to itself
The cliché of US companies outsourcing their call centre jobs to India is so widespread that there are several Hollywood movies made on this theme. With the US in recession though, it may all be changing. As per the Wall Street Journal, India's call centers are increasingly signing up Indian clients. Although, India outsources business to the tune of US$ 12 a merely 2.4% of the worldwide figure of US$ 500 bn, it is expected to contribute almost 15% of the pie by 2020.
It may be noted that US outsourcing to India was powered mainly by the relatively lower wages here. Interestingly, the outsourcing originating from within India is based on the difference in wages between urban and rural India. We believe this is a classic case of 'comparative advantage' - the ability of a person to produce a good or service at a lower marginal cost and opportunity cost than another person. Given the cost of living in the Indian metros, this trend is likely to continue.
Market Voices 2 July 2009
Market Voices 2 July 2009
The Nifty closed at 4339.40, down 1.50 points from its previous closing mark. While the Sensex hit a high of 14,764 and a low of 14,469, the Nifty moved between 4288.75 and 7383.65 today.
Metal and PSU stocks had a fairly bright session today. Realty and pharma stocks too enjoyed some bright spells in the positive zone. Auto, capital goods and bank stocks struggled. IT and power stocks rallied in closing minutes.
It was a listless ride for several midcap and smallcap stocks today.
The mood turned extremely cautious after the government presented the Economic Survey. Weakness in Asian and European markets too weighed in to a notable extent.
ONGC, Tata Steel, Grasim, Sterlite, DLF, Tata Power, HDFC, Sun Pharma, Reliance Infra and NTPC posted sharp gains. BHEL, RIL, RComm, Bharti Airtel, Tata Motors, Maruti and SBI closed with sharp losses.
Suzlon, PNB, Axis Bank, Reliance Capital, Unitech, RPower and Siemens declined sharply.
GAIL shot up by over 8%. Power Grid and Jindal Steel also ended with notable gains. The market breadth was positive at close.
It was a mixed close for Asian markets today as traders turned cautious ahead of release of some key U.S. economic reports. European markets are mostly trading in the red with some of them recording sharp losses.
The Indian market will take cues from the budget for the better part of the forthcoming week. Expectations from the budget may drive the market up sharply tomorrow, but investors are likely to stay cautious at higher levels.
GMR Infrastructure (Rs 139) can rise to Rs 155 and a strong breakout there could result in a surge to Rs 170 - 172. One holding the stock can stay invested with a stop loss around Rs 125 - 128.
The economic survey suggests rationalisation of dividend distribution tax so that dividend is taxed in the hands of receiver. Currently, companies pay taxes on dividend declared to shareholders which is called dividend distribution tax. The dividend is tax free in shareholders hand. The suggestion, if implemented, is likely to hurt investor sentiment to a notable extent.
However, the survey's suggestion to phase out levies such as commodities transaction tax, securities transaction tax and fringe benefit tax (FBT) offer some hopes to the investors.
ICICI Bank (Rs 727) can move up sharply to Rs 740 - 745 if it manages a breakout at Rs 730. The stock has support at Rs 720 and a pronounced weak spell there could result in a fall to Rs 710 or even further down to Rs 700.
One can stay invested in Ambuja Cements, Ultratech, ACC and Grasim Industries for now. Though some weakness is not ruled out in the very near term, one can expect some decent returns from these stocks over a medium term.
Indian Overseas Bank, Andhra Bank and Syndicate Bank can be tried at declines. Though a big upmove is not likely in the near run, one can expect modest returns from these stocks over the next 9 - 12 months. UCO Bank and Dena Bank are among the other good picks.
HDIL, Unitech and DLF can be picked up at sharp declines. Though these stocks are expected to remain volatile, a fairly sharp upmove looks very likely over the next 12 - 18 months. Parsvnath Developers and Sobha Developers can also be tried at dips.
Idea Cellular (Rs 73) can be bought for short term. The stock can move on to Rs 85 - 87 where it will face some stiff resistance. Short term traders can book profit there. Those looking at long term, can hold the stock with a trailing stop loss.
The economic survey released today asks for a disinvestment target of minimum Rs 25,000 crore annually, stating that every single public sector enterprise should be listed while loss making undertakings, that are beyond revival, should be auctioned. The survey sounded confident about the Indian economy, which it feels, has shock-absorbers that will facilitate early revival of the growth.
Reliance Infra (Rs 1255) has risen sharply on brisk trades at the counter. The stock can move up further this afternoon. Traders with a good appetite for risk can go in for this stock with a stop loss at Rs 1235.
Punj Lloyd has secured three contracts from Housing and Infrastructure Board, Libya for designing, procurement, installation and commissioning of utilities at Zawara, Ragdaleen and Al Jamail towns in Libya for an aggregate value of Rs 1873.18 crores. The stock has gained 2.7% to Rs 220 now. One holding the stock with a long term plan can stay invested. Exposure can be increased at sharp declines.
Kavveri Telecom Products Ltd has informed that its wholly owned subsidiary Kavveri Technologies Int., Canada has acquired Trackcom Systems International (TSI), Canada. With the acquisition of Trackcom Systems International (TSI) a design and development company based out of Montreal, Canada, Kavveri will have access to a vast portfolio of RF Products and Antennas upto 40 Ghz useful for space, defense and telecom applications. The stock is up 3.3% at Rs 48.50.
Arvind Ltd has terminated the business agreements it held with Hartmarx Corporation with regards to three brands, namely, Hart Schaffnar Marx, Sansabelt and Pierre Cardin. The firm has resorted to this move following Hartmarx Corporation filing bankruptcy in the US and the likely transfer of the Company to the new owners. The stock is currenty up by around 2% at Rs 27.35. It had touched a low of Rs 10.60 in early March this year.
Sun Pharma (cmp Rs 1147) is a good buy at declines. One can pick up the stock in small quantities at dips for good returns over a medium to long run. Glenmark, Lupin, Aurobindo Pharma and Cipla are among the other good picks from the healthcare space.
Market Outlook
The market is expected to open on a firm note today on positive global cues. Investors may choose to book profits at rallies, thus rendering the market somewhat volatile.
Sector Watch
The hike in fuel prices will set the tone for some strong buying in oil stocks. Automobile stocks may remain a bit listless. Vehicles sales in June will give some direction to the sector.
Cement stocks will take cues from June shipment figures. Information technology stocks are likely to see some buying. Infrastructure and realty stocks are likely to attract attention. Buying is likely to be stock specific in metal, pharma and capital goods sectors.
Scrip Watch
Hindustan Petroleum Corporation may see action on reports that the company will be investing around Rs 37 billion in its Vizag Refinery to meet Euro norms and create additional facilities like setting up a single point mooring berth at the Vizag port over the next two years.
Hero Honda may move up on sharp rise in vehicles sales in June. The two wheeler maker posted a 23.70% rise in its sales at 365,734 units in June compared to sales in the same period last year.
Gitanjali Gems will be in focus on reports the company would acquire a 70% stake in MobileNXT Teleservices (P) through its wholly-owned subsidiary Gitanjali Lifestyle Limited. GLL has entered into an investment-cum-shareholders agreement MobileNXT for this purpose.
Macro and Market Factors
The Wall Street ended higher yesterday amid recovery hopes, and taking cues, most of the Asian markets are trading firm today. The mood back home is also likely to be fairly positive. The data on inflation will be eyed.
The Nifty closed at 4339.40, down 1.50 points from its previous closing mark. While the Sensex hit a high of 14,764 and a low of 14,469, the Nifty moved between 4288.75 and 7383.65 today.
Metal and PSU stocks had a fairly bright session today. Realty and pharma stocks too enjoyed some bright spells in the positive zone. Auto, capital goods and bank stocks struggled. IT and power stocks rallied in closing minutes.
It was a listless ride for several midcap and smallcap stocks today.
The mood turned extremely cautious after the government presented the Economic Survey. Weakness in Asian and European markets too weighed in to a notable extent.
ONGC, Tata Steel, Grasim, Sterlite, DLF, Tata Power, HDFC, Sun Pharma, Reliance Infra and NTPC posted sharp gains. BHEL, RIL, RComm, Bharti Airtel, Tata Motors, Maruti and SBI closed with sharp losses.
Suzlon, PNB, Axis Bank, Reliance Capital, Unitech, RPower and Siemens declined sharply.
GAIL shot up by over 8%. Power Grid and Jindal Steel also ended with notable gains. The market breadth was positive at close.
It was a mixed close for Asian markets today as traders turned cautious ahead of release of some key U.S. economic reports. European markets are mostly trading in the red with some of them recording sharp losses.
The Indian market will take cues from the budget for the better part of the forthcoming week. Expectations from the budget may drive the market up sharply tomorrow, but investors are likely to stay cautious at higher levels.
GMR Infrastructure (Rs 139) can rise to Rs 155 and a strong breakout there could result in a surge to Rs 170 - 172. One holding the stock can stay invested with a stop loss around Rs 125 - 128.
The economic survey suggests rationalisation of dividend distribution tax so that dividend is taxed in the hands of receiver. Currently, companies pay taxes on dividend declared to shareholders which is called dividend distribution tax. The dividend is tax free in shareholders hand. The suggestion, if implemented, is likely to hurt investor sentiment to a notable extent.
However, the survey's suggestion to phase out levies such as commodities transaction tax, securities transaction tax and fringe benefit tax (FBT) offer some hopes to the investors.
ICICI Bank (Rs 727) can move up sharply to Rs 740 - 745 if it manages a breakout at Rs 730. The stock has support at Rs 720 and a pronounced weak spell there could result in a fall to Rs 710 or even further down to Rs 700.
One can stay invested in Ambuja Cements, Ultratech, ACC and Grasim Industries for now. Though some weakness is not ruled out in the very near term, one can expect some decent returns from these stocks over a medium term.
Indian Overseas Bank, Andhra Bank and Syndicate Bank can be tried at declines. Though a big upmove is not likely in the near run, one can expect modest returns from these stocks over the next 9 - 12 months. UCO Bank and Dena Bank are among the other good picks.
HDIL, Unitech and DLF can be picked up at sharp declines. Though these stocks are expected to remain volatile, a fairly sharp upmove looks very likely over the next 12 - 18 months. Parsvnath Developers and Sobha Developers can also be tried at dips.
Idea Cellular (Rs 73) can be bought for short term. The stock can move on to Rs 85 - 87 where it will face some stiff resistance. Short term traders can book profit there. Those looking at long term, can hold the stock with a trailing stop loss.
The economic survey released today asks for a disinvestment target of minimum Rs 25,000 crore annually, stating that every single public sector enterprise should be listed while loss making undertakings, that are beyond revival, should be auctioned. The survey sounded confident about the Indian economy, which it feels, has shock-absorbers that will facilitate early revival of the growth.
Reliance Infra (Rs 1255) has risen sharply on brisk trades at the counter. The stock can move up further this afternoon. Traders with a good appetite for risk can go in for this stock with a stop loss at Rs 1235.
Punj Lloyd has secured three contracts from Housing and Infrastructure Board, Libya for designing, procurement, installation and commissioning of utilities at Zawara, Ragdaleen and Al Jamail towns in Libya for an aggregate value of Rs 1873.18 crores. The stock has gained 2.7% to Rs 220 now. One holding the stock with a long term plan can stay invested. Exposure can be increased at sharp declines.
Kavveri Telecom Products Ltd has informed that its wholly owned subsidiary Kavveri Technologies Int., Canada has acquired Trackcom Systems International (TSI), Canada. With the acquisition of Trackcom Systems International (TSI) a design and development company based out of Montreal, Canada, Kavveri will have access to a vast portfolio of RF Products and Antennas upto 40 Ghz useful for space, defense and telecom applications. The stock is up 3.3% at Rs 48.50.
Arvind Ltd has terminated the business agreements it held with Hartmarx Corporation with regards to three brands, namely, Hart Schaffnar Marx, Sansabelt and Pierre Cardin. The firm has resorted to this move following Hartmarx Corporation filing bankruptcy in the US and the likely transfer of the Company to the new owners. The stock is currenty up by around 2% at Rs 27.35. It had touched a low of Rs 10.60 in early March this year.
Sun Pharma (cmp Rs 1147) is a good buy at declines. One can pick up the stock in small quantities at dips for good returns over a medium to long run. Glenmark, Lupin, Aurobindo Pharma and Cipla are among the other good picks from the healthcare space.
Market Outlook
The market is expected to open on a firm note today on positive global cues. Investors may choose to book profits at rallies, thus rendering the market somewhat volatile.
Sector Watch
The hike in fuel prices will set the tone for some strong buying in oil stocks. Automobile stocks may remain a bit listless. Vehicles sales in June will give some direction to the sector.
Cement stocks will take cues from June shipment figures. Information technology stocks are likely to see some buying. Infrastructure and realty stocks are likely to attract attention. Buying is likely to be stock specific in metal, pharma and capital goods sectors.
Scrip Watch
Hindustan Petroleum Corporation may see action on reports that the company will be investing around Rs 37 billion in its Vizag Refinery to meet Euro norms and create additional facilities like setting up a single point mooring berth at the Vizag port over the next two years.
Hero Honda may move up on sharp rise in vehicles sales in June. The two wheeler maker posted a 23.70% rise in its sales at 365,734 units in June compared to sales in the same period last year.
Gitanjali Gems will be in focus on reports the company would acquire a 70% stake in MobileNXT Teleservices (P) through its wholly-owned subsidiary Gitanjali Lifestyle Limited. GLL has entered into an investment-cum-shareholders agreement MobileNXT for this purpose.
Macro and Market Factors
The Wall Street ended higher yesterday amid recovery hopes, and taking cues, most of the Asian markets are trading firm today. The mood back home is also likely to be fairly positive. The data on inflation will be eyed.
Brokerage Recommendations 2 July 2009
Brokerage Recommendations 2 July 2009
Buy Renuka Sugar for excellent long-term gains, says Sandeep Bhardwaj of Tower Capital on CNBC TV18. There is a mismatch in global demand and supply of sugar, this sector will outperform going forward as the demand is likely to be the highest in the last 25 years, he adds. He is bullish on sugar stocks. The stock is currently trading at Rs 141, down 3.4% on the BSE.
Buy ONGC with a target of Rs 1153 and stop loss of Rs 1093, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1126, up 7.02% on the BSE.
Buy Great Offshore with a target of Rs 464 and stop loss of Rs 425, says Akshata Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 439, up 0.78% on the BSE.
Sell RIL with a target of Rs 1965 and stop loss of Rs 2025, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2011, down 2.3% on the BSE.
It was a choppy session of trade and market ended flat today ahead of the rail budget tomorrow. Sensex closed at 14622, up 22 points (provisional) and Nifty at 4339, up 1 point (provisional) from the previous close. CNX Midcap index was up 0.17% and BSE Smallcap index was up 0.53%. The market breadth was positive with advances at 667 against declines of 558 on the NSE.
Close all positions and stay light into the budget, says Sudarshan Sukhani, technical analyst, on CNBC TV18, as closing market strategy.
Buy Nifty 4200 put at Rs 145 and sell Nifty 4500 call at Rs 135-140, says Tejas Nandu, technical analyst, on Zee Business, as closing market strategy.
Buy Tata Steel with a target of Rs 440 and stop loss of Rs 415, says Nishant Jain, technical analyst, on CNBC Awaaz, as closing market strategy.
Buy Sterlite Industries with a target of Rs 685 and stop loss of Rs 610, says Ashwani Gujral, technical analyst, on CNBC TV18, as closing market strategy.
Buy ONGC with a target of Rs 1220-1230, says Rahul Mohindar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 1126, up 7.02% on the BSE.
The oil secretary says ONGC and GAIL won't bear kerosene and LPG subsidy burden, reports CNBC TV18. The stocks soar on the news, ONGC up 7.1% and GAIL up 8% on the BSE.
The market has recovered and is trading in the positive, showing some strength. Sensex is trading at 14682, up 38 points and Nifty is at 4355, up 14 points from the previous close. CNX Midcap index is up 0.63% and BSE Smallcap index is up 1%. The market breadth is positive with advances at 743 against declines of 478 on the NSE.
In an F&O call, sell Nifty July futures with a target of 4250 and stop loss of 4330, says Rajesh Jain of SMC Global Securities, technical analyst, on CNBC Awaaz. If Nifty goes below 4250 then a deeper fall is possible, he adds.
In an F&O call, buy Nifty July futures with a target of 4350 and stop loss of 4287, says Raj Kishore Bang, technical analyst, on CNC Awaaz. Hold Nifty longs and this call is only for today, he adds.
In an F&O call, sell Nifty July futures with a target of 4150 and stop loss of 4350, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. Take fresh positions after the budget, he adds.
In an F&O call, sell Nifty July futures with a target of 4230-4260 and stop loss of 4380, says Nishant Jain, technical analyst, on CNBC Awaaz. This call is for the next two days, he adds.
Buy Escorts with a target of Rs 74 and stop loss of Rs 63.50, says Akshata Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 64, up 3.2% on the BSE.
Hold GMR Infrastructure with a target of Rs 150-180 and stop loss of Rs 130, says Sundar Raja, technical analyst, on NDTV Profit. The stock is currently trading at Rs 139, down 1.2% on the BSE.
Buy Tech Mahindra with a target of Rs 805 and stop loss of Rs 715, says Akshata Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 752, up 0.7% on the BSE.
Hold Areva T&D with a target of Rs 360 and stop loss of Rs 300, says Sundar Raja, technical analyst, on NDTV Profit. The stock is currently trading at Rs 352, down 2.97% on the BSE.
Buy Tata Communications with a target of Rs 512 after which it can go to Rs 560 and stop loss of Rs 478, says Akshata Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 478, down 1.89% on the BSE.
Buy PNB with a target of Rs 715, says Mitesh Thakkar, technical analyst, on CNBC-TV18. The stock is currently trading at Rs 655, down 4.06% on the BSE.
The market has seen a small recovery after digesting the economic survey dubbed by experts as 'growth oriented'. Sensex is trading at 14574, down 70 points and Nifty is at 4318, down 22 points from the previous close. CNX Midcap index is up 0.26% and BSE Smallcap index is up 0.64%. The market breadth is positive with advances at 640 against declines of 569 on the NSE.
Buy BEML at 15-20% lower than the current levels, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. Hold for 2 years for good gains, he adds. The stock is currently trading at Rs 1083, down 1.35% on the BSE.
Hold DCB with target of Rs 38-40 at which level book 50% profits, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 33, he adds. The stock is currently trading at Rs 36, down 0.94% on the BSE.
Hold Reliance Capital with a target of Rs 970 and stop loss of Rs 880, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 920, down 1.99% on the BSE.
The government plans to outline the roadmap for disinvestment in the budget, says the finance minister on CNBC TV18. Over Rs 25,000 crore per annum could be the budgeted estimate for disinvestment, he adds.
Economic Survey 2008-2009: Aims to generate Rs 25,000 crore per annum through disinvestments, auction loss making PSUs, introduce new IT code, mulls scrapping CTT, FBT and STT, phase out tax surcharges, cesses and transaction taxes, target zero fiscal deficit and cut out oil, food and fertilizer subsidy leakages, reports CNBC TV18.
Hold HDIL with target of Rs 275 at which level book 50% profit, says Nitin Murarka of SMC Global on Zee Business. Keep short-term stop loss of Rs 200, he adds. Buy again at Rs 180, he says. The stock is currently trading at Rs 227.85, down 3.7% on the BSE.
Hold HDIL with target of Rs 245-250, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. Buy again only if it crosses Rs 260 or comes down to Rs 210, he adds. The stock is currently trading at Rs 230.70, down 2.5% on the BSE.
Hold GTL Infra with stop loss of Rs 36, says MB Singh, technical analyst, on Zee Business. It has resistance at Rs 44 crossing which it can go to Rs 50 and above, he adds. The stock is currently trading at Rs 39.70, down 1% on the BSE.
Hold Bata India with target of Rs 170, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 140, he adds. The stock is currently trading at Rs 153, down 0.5% on the BSE.
Sell Tata Motors on any rally, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. It is in a downtrend and even if the market does well, this stock will under-perform, he adds. The stock is currently trading at Rs 292.75, down 2.2% on the BSE.
Hold Kalindee Rail with targets of Rs 227 and then 235, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 214, he adds. The stock is currently trading at Rs 222.10, down 0.9% on the BSE.
Buy Navneet Publications with target of Rs 95, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 85.80, up 3.6% on the BSE.
The market at noon is in the green again and trading firm. Sensex is trading at 14745, up 100 points from its previous close, and Nifty is at 4374, up 33 points. CNX Midcap index is up 0.8% and BSE Smallcap index is up 1.6%. The market breadth is positive with advances at 873 against declines of 296 on the NSE.
Buy Bharti Airtel at current levels with target of Rs 860 in one month, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 800, he adds. The stock is currently trading at Rs 816.90, down 0.7% on the BSE.
Hold IFCI with target of Rs 58, says MB Singh, technical analyst, on Zee Business. Keep stop loss of Rs 49, he adds. The stock is currently trading at Rs 53.90, up 1.2% on the BSE.
Sell ACC at Rs 763 with target of Rs 700, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 785, he adds. The stock is currently trading at Rs 765.50, up 0.2% on the BSE.
Buy Tata Communications with target of Rs 518, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 466, he adds. The stock is currently trading at Rs 491.55, up 0.8% on the BSE.
There hasn't been too much noise from the government and the budget expectations are not high, says Andrew Holland of Ambit Capital on CNBC TV18. And this, he believes, has dampened sentiment for the near-term. Oil de-regulation is unlikely to come up in the budget after the fuel price hike yesterday, he adds.
Sell Hindalco with target of Rs 72, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 87, he adds. The stock is currently trading at Rs 84.25, up 1% on the BSE.
Hold Essar Oil with stop loss of Rs 140, says MB Singh, technical analyst, on Zee Business. It has resistance at Rs 171 crossing which it can go to Rs 185, he adds. The stock is currently trading at Rs 159, up 1.4% on the BSE.
Buy Aptech with target of Rs 206, says Ashwani Gujral, technical analyst, on CNBC TV18. It has support at Rs 167, he adds. The stock is currently trading at Rs 182.40, up 2.4% on the BSE.
Buy Axis Bank with stop loss of Rs 860, says Deepak Mohoni, technical analyst, on CNBC TV18. The stock is currently trading at Rs 861.95, down 0.9% on the BSE.
Buy IDFC with short-term target of Rs 140-145, says Rahul Mohinder, technical analyst, on CNBC TV18. It has support at Rs 128, he adds. The stock is currently trading at Rs 136.25 up 2.1% on the BSE.
Buy NIIT Ltd with intra-day target of Rs 78, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 70, he adds. The stock is currently trading at Rs 73.60, up 4.5% on the BSE.
Hold Unitech with short-term stop loss of Rs 76, says MB Singh, technical analyst, on Zee Business. It has resistance at Rs 86 crossing which it can go to Rs 95, he adds. The stock is currently trading at Rs 82.40, down 0.4% on the BSE.
Buy NIIT Ltd with targets of Rs 87 and then 99, says Ashwani Gujral, technical analyst, on CNBC TV18. It has support at Rs 66, he adds. The stock is currently trading at Rs 73.80, up 4.8% on the BSE.
Buy Zylog Systems with intra-day target of Rs 205, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 195, he adds. The stock is currently trading at Rs 197.45, up 0.7% on the BSE.
Buy BPCL, HPCL and IOC for returns of 15% in the short term, says Rahul Mohinder, technical analyst, on CNBC Awaaz.
Buy Zee Entertainment with intra-day target of Rs 185, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 176, he adds. The stock is currently trading at Rs 180, up 1.6% on the BSE.
Buy Ugar Sugar with intra-day target of Rs 27, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 23.45, he adds. The stock is at Rs 23.55, up 4.4% on the BSE.
Buy Sesa Goa at Rs 185 with target of Rs 191, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 181, she adds. The stock is at Rs 185.60, up 1.6% on the BSE.
Nifty is trading in a range now - within 4400 and 4250, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. He advises buying into the market only if the Nifty goes above 4400. Buy Neyveli Lignite at Rs 130 with target of Rs 135, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 127, she adds. The stock is at Rs 130.05, up 7.3% on the BSE.
Buy Kotak Mahindra Bank at Rs 643 with target of Rs 665, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 629, she adds. The stock is at Rs 642.65, up 1.7% on the BSE.
Buy Renuka Sugar for excellent long-term gains, says Sandeep Bhardwaj of Tower Capital on CNBC TV18. There is a mismatch in global demand and supply of sugar, this sector will outperform going forward as the demand is likely to be the highest in the last 25 years, he adds. He is bullish on sugar stocks. The stock is currently trading at Rs 141, down 3.4% on the BSE.
Buy ONGC with a target of Rs 1153 and stop loss of Rs 1093, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 1126, up 7.02% on the BSE.
Buy Great Offshore with a target of Rs 464 and stop loss of Rs 425, says Akshata Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 439, up 0.78% on the BSE.
Sell RIL with a target of Rs 1965 and stop loss of Rs 2025, says Hemen Kapadia, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 2011, down 2.3% on the BSE.
It was a choppy session of trade and market ended flat today ahead of the rail budget tomorrow. Sensex closed at 14622, up 22 points (provisional) and Nifty at 4339, up 1 point (provisional) from the previous close. CNX Midcap index was up 0.17% and BSE Smallcap index was up 0.53%. The market breadth was positive with advances at 667 against declines of 558 on the NSE.
Close all positions and stay light into the budget, says Sudarshan Sukhani, technical analyst, on CNBC TV18, as closing market strategy.
Buy Nifty 4200 put at Rs 145 and sell Nifty 4500 call at Rs 135-140, says Tejas Nandu, technical analyst, on Zee Business, as closing market strategy.
Buy Tata Steel with a target of Rs 440 and stop loss of Rs 415, says Nishant Jain, technical analyst, on CNBC Awaaz, as closing market strategy.
Buy Sterlite Industries with a target of Rs 685 and stop loss of Rs 610, says Ashwani Gujral, technical analyst, on CNBC TV18, as closing market strategy.
Buy ONGC with a target of Rs 1220-1230, says Rahul Mohindar, technical analyst, on CNBC TV18. The stock is currently trading at Rs 1126, up 7.02% on the BSE.
The oil secretary says ONGC and GAIL won't bear kerosene and LPG subsidy burden, reports CNBC TV18. The stocks soar on the news, ONGC up 7.1% and GAIL up 8% on the BSE.
The market has recovered and is trading in the positive, showing some strength. Sensex is trading at 14682, up 38 points and Nifty is at 4355, up 14 points from the previous close. CNX Midcap index is up 0.63% and BSE Smallcap index is up 1%. The market breadth is positive with advances at 743 against declines of 478 on the NSE.
In an F&O call, sell Nifty July futures with a target of 4250 and stop loss of 4330, says Rajesh Jain of SMC Global Securities, technical analyst, on CNBC Awaaz. If Nifty goes below 4250 then a deeper fall is possible, he adds.
In an F&O call, buy Nifty July futures with a target of 4350 and stop loss of 4287, says Raj Kishore Bang, technical analyst, on CNC Awaaz. Hold Nifty longs and this call is only for today, he adds.
In an F&O call, sell Nifty July futures with a target of 4150 and stop loss of 4350, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. Take fresh positions after the budget, he adds.
In an F&O call, sell Nifty July futures with a target of 4230-4260 and stop loss of 4380, says Nishant Jain, technical analyst, on CNBC Awaaz. This call is for the next two days, he adds.
Buy Escorts with a target of Rs 74 and stop loss of Rs 63.50, says Akshata Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 64, up 3.2% on the BSE.
Hold GMR Infrastructure with a target of Rs 150-180 and stop loss of Rs 130, says Sundar Raja, technical analyst, on NDTV Profit. The stock is currently trading at Rs 139, down 1.2% on the BSE.
Buy Tech Mahindra with a target of Rs 805 and stop loss of Rs 715, says Akshata Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 752, up 0.7% on the BSE.
Hold Areva T&D with a target of Rs 360 and stop loss of Rs 300, says Sundar Raja, technical analyst, on NDTV Profit. The stock is currently trading at Rs 352, down 2.97% on the BSE.
Buy Tata Communications with a target of Rs 512 after which it can go to Rs 560 and stop loss of Rs 478, says Akshata Deshmukh, technical analyst, on CNBC Awaaz. The stock is currently trading at Rs 478, down 1.89% on the BSE.
Buy PNB with a target of Rs 715, says Mitesh Thakkar, technical analyst, on CNBC-TV18. The stock is currently trading at Rs 655, down 4.06% on the BSE.
The market has seen a small recovery after digesting the economic survey dubbed by experts as 'growth oriented'. Sensex is trading at 14574, down 70 points and Nifty is at 4318, down 22 points from the previous close. CNX Midcap index is up 0.26% and BSE Smallcap index is up 0.64%. The market breadth is positive with advances at 640 against declines of 569 on the NSE.
Buy BEML at 15-20% lower than the current levels, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. Hold for 2 years for good gains, he adds. The stock is currently trading at Rs 1083, down 1.35% on the BSE.
Hold DCB with target of Rs 38-40 at which level book 50% profits, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 33, he adds. The stock is currently trading at Rs 36, down 0.94% on the BSE.
Hold Reliance Capital with a target of Rs 970 and stop loss of Rs 880, says Nitin Murarka of SMC Global Securities on Zee Business. The stock is currently trading at Rs 920, down 1.99% on the BSE.
The government plans to outline the roadmap for disinvestment in the budget, says the finance minister on CNBC TV18. Over Rs 25,000 crore per annum could be the budgeted estimate for disinvestment, he adds.
Economic Survey 2008-2009: Aims to generate Rs 25,000 crore per annum through disinvestments, auction loss making PSUs, introduce new IT code, mulls scrapping CTT, FBT and STT, phase out tax surcharges, cesses and transaction taxes, target zero fiscal deficit and cut out oil, food and fertilizer subsidy leakages, reports CNBC TV18.
Hold HDIL with target of Rs 275 at which level book 50% profit, says Nitin Murarka of SMC Global on Zee Business. Keep short-term stop loss of Rs 200, he adds. Buy again at Rs 180, he says. The stock is currently trading at Rs 227.85, down 3.7% on the BSE.
Hold HDIL with target of Rs 245-250, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. Buy again only if it crosses Rs 260 or comes down to Rs 210, he adds. The stock is currently trading at Rs 230.70, down 2.5% on the BSE.
Hold GTL Infra with stop loss of Rs 36, says MB Singh, technical analyst, on Zee Business. It has resistance at Rs 44 crossing which it can go to Rs 50 and above, he adds. The stock is currently trading at Rs 39.70, down 1% on the BSE.
Hold Bata India with target of Rs 170, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 140, he adds. The stock is currently trading at Rs 153, down 0.5% on the BSE.
Sell Tata Motors on any rally, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. It is in a downtrend and even if the market does well, this stock will under-perform, he adds. The stock is currently trading at Rs 292.75, down 2.2% on the BSE.
Hold Kalindee Rail with targets of Rs 227 and then 235, says Raj Kishore Bang, technical analyst, on CNBC Awaaz. Keep stop loss of Rs 214, he adds. The stock is currently trading at Rs 222.10, down 0.9% on the BSE.
Buy Navneet Publications with target of Rs 95, says Ashwani Gujral, technical analyst, on CNBC TV18. The stock is currently trading at Rs 85.80, up 3.6% on the BSE.
The market at noon is in the green again and trading firm. Sensex is trading at 14745, up 100 points from its previous close, and Nifty is at 4374, up 33 points. CNX Midcap index is up 0.8% and BSE Smallcap index is up 1.6%. The market breadth is positive with advances at 873 against declines of 296 on the NSE.
Buy Bharti Airtel at current levels with target of Rs 860 in one month, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 800, he adds. The stock is currently trading at Rs 816.90, down 0.7% on the BSE.
Hold IFCI with target of Rs 58, says MB Singh, technical analyst, on Zee Business. Keep stop loss of Rs 49, he adds. The stock is currently trading at Rs 53.90, up 1.2% on the BSE.
Sell ACC at Rs 763 with target of Rs 700, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 785, he adds. The stock is currently trading at Rs 765.50, up 0.2% on the BSE.
Buy Tata Communications with target of Rs 518, says Ashwani Gujral, technical analyst, on CNBC TV18. Keep stop loss of Rs 466, he adds. The stock is currently trading at Rs 491.55, up 0.8% on the BSE.
There hasn't been too much noise from the government and the budget expectations are not high, says Andrew Holland of Ambit Capital on CNBC TV18. And this, he believes, has dampened sentiment for the near-term. Oil de-regulation is unlikely to come up in the budget after the fuel price hike yesterday, he adds.
Sell Hindalco with target of Rs 72, says Nitin Murarka of SMC Global on Zee Business. Keep stop loss of Rs 87, he adds. The stock is currently trading at Rs 84.25, up 1% on the BSE.
Hold Essar Oil with stop loss of Rs 140, says MB Singh, technical analyst, on Zee Business. It has resistance at Rs 171 crossing which it can go to Rs 185, he adds. The stock is currently trading at Rs 159, up 1.4% on the BSE.
Buy Aptech with target of Rs 206, says Ashwani Gujral, technical analyst, on CNBC TV18. It has support at Rs 167, he adds. The stock is currently trading at Rs 182.40, up 2.4% on the BSE.
Buy Axis Bank with stop loss of Rs 860, says Deepak Mohoni, technical analyst, on CNBC TV18. The stock is currently trading at Rs 861.95, down 0.9% on the BSE.
Buy IDFC with short-term target of Rs 140-145, says Rahul Mohinder, technical analyst, on CNBC TV18. It has support at Rs 128, he adds. The stock is currently trading at Rs 136.25 up 2.1% on the BSE.
Buy NIIT Ltd with intra-day target of Rs 78, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 70, he adds. The stock is currently trading at Rs 73.60, up 4.5% on the BSE.
Hold Unitech with short-term stop loss of Rs 76, says MB Singh, technical analyst, on Zee Business. It has resistance at Rs 86 crossing which it can go to Rs 95, he adds. The stock is currently trading at Rs 82.40, down 0.4% on the BSE.
Buy NIIT Ltd with targets of Rs 87 and then 99, says Ashwani Gujral, technical analyst, on CNBC TV18. It has support at Rs 66, he adds. The stock is currently trading at Rs 73.80, up 4.8% on the BSE.
Buy Zylog Systems with intra-day target of Rs 205, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 195, he adds. The stock is currently trading at Rs 197.45, up 0.7% on the BSE.
Buy BPCL, HPCL and IOC for returns of 15% in the short term, says Rahul Mohinder, technical analyst, on CNBC Awaaz.
Buy Zee Entertainment with intra-day target of Rs 185, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 176, he adds. The stock is currently trading at Rs 180, up 1.6% on the BSE.
Buy Ugar Sugar with intra-day target of Rs 27, says Anil Singhvi, market expert, on CNBC Awaaz. Keep stop loss of Rs 23.45, he adds. The stock is at Rs 23.55, up 4.4% on the BSE.
Buy Sesa Goa at Rs 185 with target of Rs 191, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 181, she adds. The stock is at Rs 185.60, up 1.6% on the BSE.
Nifty is trading in a range now - within 4400 and 4250, says Sudarshan Sukhani, technical analyst, on CNBC Awaaz. He advises buying into the market only if the Nifty goes above 4400. Buy Neyveli Lignite at Rs 130 with target of Rs 135, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 127, she adds. The stock is at Rs 130.05, up 7.3% on the BSE.
Buy Kotak Mahindra Bank at Rs 643 with target of Rs 665, says Simi Bhaumik, technical analyst, on Zee Business. Keep stop loss of Rs 629, she adds. The stock is at Rs 642.65, up 1.7% on the BSE.
Closing Bell 1 July 2009
Closing Bell 1 July 2009
Although the Indian markets witnessed some volatility during the previous hour, they managed to end the day well above yesterday’s closing level. The BSE-Sensex ended with gains of about 150 points, while the NSE-Nifty ended higher by about 50 points. Stocks from the mid-cap and small-cap spaces ended the day on a positive note as well, recording gains of 1% and 0.3% respectively. Apart from stocks from the consumer durables space, buying activity was witnessed in stocks across the board, led by the realty, banking and auto spaces.
Most of the other Asian markets ended the day on a firm note today. The European indices are currently trading in the green as well. Rupee was trading at 48.00 against the US dollar at the time of writing.
Auto stocks ended the day on a firm note led by Tata Motors and M&M. Maruti Suzuki announced its sales for the month of June 2009 today. The company reported a 23% YoY increase in sales as against the same month last year. While sales in the domestic market grew by 10% YoY, exports witnessed a growth of 175% and formed about 18% of total unit sales. The company registered its highest ever export sales during the month (over 13,000 units). A reason for the same is increased exports to European economies. It may be noted some European countries have been offering incentives to customers who switch to environmental friendly cars. Further, the overall increase in volumes was largely driven by its A2 segment (comprising of the Alto, Wagon R, Zen Estillo, Swift, A-Star and Ritz) which grew by 22% YoY and formed about 62% of total sales during the month. On the other hand, its A3 segment (consisting of SX4 and DZiRE) witnessed a 5% YoY increase in volumes. This segment formed about 8% of total volumes during the month.
Sugar stocks ended the day on a firm note led by Balrampur Chini and Bajaj Hindusthan. In a move that will help in reducing sugar prices, which is stoked on account of supply constraints, a leading business daily has reported that the sugar industry is expecting the government to extend its duty-free raw sugar import policy by one year. This move will indirectly help in encouraging imports. A few months back, the government had removed duty as tight supplies were leading to higher sugar prices. It may be noted that sugar manufacturers were earlier allowed to source raw sugar from overseas at zero duty. But in turn, they had to export the same amount of refined sugar within a period of three years. As sugar production for the coming year is expected to be lower, this move would reduce the demand-supply gap.
As per a leading business daily, the six core industries – crude oil, petroleum products, coal, electricity, cement and finished steel – have registered a growth of 2.8% YoY during the month of May 2009. Apart from crude oil and refinery production, all other sectors registered a positive growth. It may be noted that the core sector performance has a weightage of 27% in the IIP. As per the World Bank economist, IIP is likely to remain in the positive territory as the manufacturing sector (especially the textile, auto and cement sectors) will help in keeping the IIP growth afloat.
The markets continued to trade in the positive territory during the previous two hours of trade on account of sustained buying activity in the index heavyweights. Currently, stocks from the energy, construction and banking sectors are garnering the investor’s interest, while select stocks from the aluminium, pharma and power sectors are trading weak. The overall advance to decline ratio is poised at 1.1 to 1 on the BSE.
The BSE-Sensex and NSE-Nifty are currently trading higher, up by around 60 points and 30 points respectively. The BSE-Midcap index is trading higher by 0.3%, while the BSE-Smallcap index is trading lower by 0.3%. The Rupee is trading at 47.99 to the Dollar.
Pharma stocks are trading mixed. While Lupin and Ranbaxy are trading higher, Cipla and Wockhardt are trading lower. As per a leading business daily, Indian Pharma major, Lupin had acquired the global rights for ‘AllerNaze’ an intra nasal steroid (INS) from Collegium Pharmaceuticals, a US based company. As far as the deal goes Lupin will pay the US based company a down payment apart from milestone payments. While Lupin has not disclosed the size of the deal, the milestones to be paid would be based on the sales that will be generated. It may be noted that the company initially plans to sell the product in the US markets and will launch it in other countries by 2011. US, Japan and Europe are the major markets for INS. In fact, the INS market in the US alone generates sales of over US$ 2.5 bn annually. This is a positive move by the company as it will enable it grow its revenues especially from its branded business which also enjoys higher margins.
Software stocks are trading mixed. While Infosys and HCL Tech are trading higher, TCS and Wipro are trading lower. As per a leading business daily, TCS plans to incur a capex of Rs 13 bn in FY10. This is likely to be used to expand its domestic capacity so as to increase its offshore revenues. The company is looking at off-shoring more work to India in order to reduce costs. As a matter of fact, the offshore revenues as a percentage of revenues increased from around 42% in FY08 to 44% in FY09. It may also be noted that the IT sector is witnessing a major slowdown globally and is not likely to grow much in FY10. Also,the US government’s opposition to outsourcing is not a very good sign either. Thus, the company’s move of increasing its focus on the domestic IT market and shifting more jobs to offshore locations can be viewed as a step towards increasing revenues and profitability. Moreover, such expansion plans signal an optimistic view on the Indian IT job market, which has been hit badly by the downturn.
The Indian markets remained volatile during the previous two hours of trade on alternate bouts of buying and selling being witnessed on the bourses. Stocks from the metal, power and energy sectors are weighing heavy on the indices. However, select realty and FMCG stocks are trading in the green. The overall decline to advance ratio was poised at 2.1 to 1 on the BSE.
The BSE-Sensex is down by around 10 points, while the NSE-Nifty is currently trading flat. The BSE-Midcap and BSE-Smallcap indices are trading lower, down by around 0.2% and 0.7% respectively. The Rupee is trading at 48.09 to the Dollar.
Software stocks are trading mixed. While Infosys and Wipro are trading firm, TCS is in the red. As per a leading business daily, IT majors TCS, Wipro and Infosys are scouting for around Rs 20 bn defence deals. As such, the Indian Air Force and the Army are seeking to modernise their processes in order to bring efficiency and cut time and costs. This is a positive development for the domestic IT majors as it will help them improve their domestic presence. Further, IT majors have been under pressure as IT spend in the developed nations has reduced. TCS, for instance, will largely benefit as it is already working on several IT projects with the defence forces over a decade and has specified expertise and credibility in these areas.
As per a leading business daily, Hero Honda has reported its sales volumes for the month of June. The company’s volumes were up 23.7% YoY during the month. For 1QFY10, Hero Honda’s volumes were higher by around 25% YoY. Given the company’s huge base, it has been able to achieve higher growth as compared to the industry and thus, has increased its market share in two wheelers to a high of 59% in the process. It may be noted that Hero Honda has been aggressive in expanding its reach to the rural consumers. Currently, it has the highest sales points and is much ahead of the second largest two-wheeler manufacturer namely Baja Auto. In fact, the company has almost doubled its sales network to around 3,900 sales points as compared to 2,000 at the end of FY06. The company, along with the peer Bajaj Auto, is trading firm.
The Indian markets have opened the day on a cautious note with some amount of volatility being witnessed. Auto, engineering and power stocks are leading the pack of gainers. The overall advance to decline ratio stood at 1.8:1 on the NSE. As regards global markets, the US ended in the red as the June Consumer Confidence index fell to 49.3 from a revised 54.8 in May. The European markets ended lower too yesterday, while the Asian markets are also trading mixed currently.
The BSE Sensex is trading higher by around 40 points. The NSE Nifty is up 25 points. The BSE Midcap and the BSE Smallcap indices are trading flat. The rupee is trading at 48.09 to the dollar.
Hindalco announced its FY09 results yesterday. The standalone topline declined by 5% YoY on account of fall in the LME prices of aluminium and copper. The revenues of the copper division declined by 11.9% YoY. The aluminium segment accounted for 42% of the company's total revenues during FY09 as compared to 37% in the previous fiscal. Segmental revenues were higher by 6.4% as compared to FY08. The operating profits declined by 10.7% YoY, causing EBITDA margins to contract by 1% during the fiscal. The standalone bottomline saw a fall of 22% YoY led by higher interest charges, depreciation and taxes. On a consolidated basis, the topline grew by 9.4% YoY while the bottomline declined by 84.9% YoY during the year. The board has recommended a dividend of Rs 1.35 per share (dividend yield of 2%). Aluminium stocks are trading down.
India's current account recorded a surplus of US$ 4.7 bn during 4QFY09 as against a US$ 1.5 bn deficit last year. The current account balance saw this turnaround after two years mainly due to lower trade deficit and surplus invisibles. The exports saw a drop of 24% YoY due to economic slowdown. The imports declined by 27% YoY led by decline in import oil and commodities bill. The invisibles declined by 7% YoY in the fourth quarter due to a slow growth in the software sector, while the services increased by over 45% YoY. However, the country's capital account balance remained in the negative at US$ 4.4 bn during 4QFY09. The portfolio investment declined by 26% YoY as the foreign institutional investors pulled out of the Indian equity markets due to the liquidity crisis. The fiscal deficit also shot up to Rs 907 m for April-May period, constituting 27.3% of the full-year target of Rs 3.3 trillion.
India can grow at 7% provided monsoons turn up well
If the chairman of the Prime Minister's Economic Advisory Council is to be believed, the Indian economy has the potential to grow at 7% during the current fiscal FY10. Mr. Suresh Tendulkar has noted that a favorable monetary environment coupled with the stimulus package by the government will ensure that GDP growth comes in higher than the 6.7% jump witnessed in FY09. On the former, i.e., the monetary environment, he has opined that although the Indian central bank has cut interest rates by some 4.25% between October 2008 and April 2009, they are now getting reflected gradually in bank rates, a good sign for the economy.
However, his prediction has come with a caveat that the monsoons should not fail. If they do fail, then the growth might come in considerably lower. A point of view that we cannot help but agree with.
Despite the fact that share of the agriculture sector in the country's GDP has been coming down over the years, we still have a huge chunk of our population depending on agriculture for its livelihood and hence, if monsoon plays truant, it might affect consumption patterns of this set of people thus leading to a cascading effect on the overall economy. It will be fair to say that a couple of percentage points could be easily shaved off India's GDP growth rate if monsoons come in way below the long-term average trend.
It seems like the big boys of private equity are on a comeback trail in India and China. As per The Wall Street Journal, Carlyle Group, one of the world's biggest private equity firms has stated that it has raised around US$ 1 bn for a new fund that will invest in fast growing companies in the emerging markets of India and China. It has further said that the appetite among pension funds and financial institutions for these two economies is on the rise. And there could be perhaps no better time to start a dedicated fund of this sort.
Although both the Asian nations under discussion did not get as badly impacted from the financial crisis as their western counterparts, it did test the mettle of quite a few companies and hence, the firms that have been able to pass what could be counted as one of their sternest tests in recent times, would be on the radar of investors like the Carlyle Group.
It is not as if Indian and Chinese capital markets did not have a brush with the mindset of foreign investment firms like those from the private equity group. During the peak of the last bull-run, easy money coming from hedge funds and investment banks had pushed valuations to very exorbitant levels and with this hot money being pulled out quickly in the aftermath of the crisis, valuations have once started looking reasonable from a long-term perspective.
Although the Indian markets witnessed some volatility during the previous hour, they managed to end the day well above yesterday’s closing level. The BSE-Sensex ended with gains of about 150 points, while the NSE-Nifty ended higher by about 50 points. Stocks from the mid-cap and small-cap spaces ended the day on a positive note as well, recording gains of 1% and 0.3% respectively. Apart from stocks from the consumer durables space, buying activity was witnessed in stocks across the board, led by the realty, banking and auto spaces.
Most of the other Asian markets ended the day on a firm note today. The European indices are currently trading in the green as well. Rupee was trading at 48.00 against the US dollar at the time of writing.
Auto stocks ended the day on a firm note led by Tata Motors and M&M. Maruti Suzuki announced its sales for the month of June 2009 today. The company reported a 23% YoY increase in sales as against the same month last year. While sales in the domestic market grew by 10% YoY, exports witnessed a growth of 175% and formed about 18% of total unit sales. The company registered its highest ever export sales during the month (over 13,000 units). A reason for the same is increased exports to European economies. It may be noted some European countries have been offering incentives to customers who switch to environmental friendly cars. Further, the overall increase in volumes was largely driven by its A2 segment (comprising of the Alto, Wagon R, Zen Estillo, Swift, A-Star and Ritz) which grew by 22% YoY and formed about 62% of total sales during the month. On the other hand, its A3 segment (consisting of SX4 and DZiRE) witnessed a 5% YoY increase in volumes. This segment formed about 8% of total volumes during the month.
Sugar stocks ended the day on a firm note led by Balrampur Chini and Bajaj Hindusthan. In a move that will help in reducing sugar prices, which is stoked on account of supply constraints, a leading business daily has reported that the sugar industry is expecting the government to extend its duty-free raw sugar import policy by one year. This move will indirectly help in encouraging imports. A few months back, the government had removed duty as tight supplies were leading to higher sugar prices. It may be noted that sugar manufacturers were earlier allowed to source raw sugar from overseas at zero duty. But in turn, they had to export the same amount of refined sugar within a period of three years. As sugar production for the coming year is expected to be lower, this move would reduce the demand-supply gap.
As per a leading business daily, the six core industries – crude oil, petroleum products, coal, electricity, cement and finished steel – have registered a growth of 2.8% YoY during the month of May 2009. Apart from crude oil and refinery production, all other sectors registered a positive growth. It may be noted that the core sector performance has a weightage of 27% in the IIP. As per the World Bank economist, IIP is likely to remain in the positive territory as the manufacturing sector (especially the textile, auto and cement sectors) will help in keeping the IIP growth afloat.
The markets continued to trade in the positive territory during the previous two hours of trade on account of sustained buying activity in the index heavyweights. Currently, stocks from the energy, construction and banking sectors are garnering the investor’s interest, while select stocks from the aluminium, pharma and power sectors are trading weak. The overall advance to decline ratio is poised at 1.1 to 1 on the BSE.
The BSE-Sensex and NSE-Nifty are currently trading higher, up by around 60 points and 30 points respectively. The BSE-Midcap index is trading higher by 0.3%, while the BSE-Smallcap index is trading lower by 0.3%. The Rupee is trading at 47.99 to the Dollar.
Pharma stocks are trading mixed. While Lupin and Ranbaxy are trading higher, Cipla and Wockhardt are trading lower. As per a leading business daily, Indian Pharma major, Lupin had acquired the global rights for ‘AllerNaze’ an intra nasal steroid (INS) from Collegium Pharmaceuticals, a US based company. As far as the deal goes Lupin will pay the US based company a down payment apart from milestone payments. While Lupin has not disclosed the size of the deal, the milestones to be paid would be based on the sales that will be generated. It may be noted that the company initially plans to sell the product in the US markets and will launch it in other countries by 2011. US, Japan and Europe are the major markets for INS. In fact, the INS market in the US alone generates sales of over US$ 2.5 bn annually. This is a positive move by the company as it will enable it grow its revenues especially from its branded business which also enjoys higher margins.
Software stocks are trading mixed. While Infosys and HCL Tech are trading higher, TCS and Wipro are trading lower. As per a leading business daily, TCS plans to incur a capex of Rs 13 bn in FY10. This is likely to be used to expand its domestic capacity so as to increase its offshore revenues. The company is looking at off-shoring more work to India in order to reduce costs. As a matter of fact, the offshore revenues as a percentage of revenues increased from around 42% in FY08 to 44% in FY09. It may also be noted that the IT sector is witnessing a major slowdown globally and is not likely to grow much in FY10. Also,the US government’s opposition to outsourcing is not a very good sign either. Thus, the company’s move of increasing its focus on the domestic IT market and shifting more jobs to offshore locations can be viewed as a step towards increasing revenues and profitability. Moreover, such expansion plans signal an optimistic view on the Indian IT job market, which has been hit badly by the downturn.
The Indian markets remained volatile during the previous two hours of trade on alternate bouts of buying and selling being witnessed on the bourses. Stocks from the metal, power and energy sectors are weighing heavy on the indices. However, select realty and FMCG stocks are trading in the green. The overall decline to advance ratio was poised at 2.1 to 1 on the BSE.
The BSE-Sensex is down by around 10 points, while the NSE-Nifty is currently trading flat. The BSE-Midcap and BSE-Smallcap indices are trading lower, down by around 0.2% and 0.7% respectively. The Rupee is trading at 48.09 to the Dollar.
Software stocks are trading mixed. While Infosys and Wipro are trading firm, TCS is in the red. As per a leading business daily, IT majors TCS, Wipro and Infosys are scouting for around Rs 20 bn defence deals. As such, the Indian Air Force and the Army are seeking to modernise their processes in order to bring efficiency and cut time and costs. This is a positive development for the domestic IT majors as it will help them improve their domestic presence. Further, IT majors have been under pressure as IT spend in the developed nations has reduced. TCS, for instance, will largely benefit as it is already working on several IT projects with the defence forces over a decade and has specified expertise and credibility in these areas.
As per a leading business daily, Hero Honda has reported its sales volumes for the month of June. The company’s volumes were up 23.7% YoY during the month. For 1QFY10, Hero Honda’s volumes were higher by around 25% YoY. Given the company’s huge base, it has been able to achieve higher growth as compared to the industry and thus, has increased its market share in two wheelers to a high of 59% in the process. It may be noted that Hero Honda has been aggressive in expanding its reach to the rural consumers. Currently, it has the highest sales points and is much ahead of the second largest two-wheeler manufacturer namely Baja Auto. In fact, the company has almost doubled its sales network to around 3,900 sales points as compared to 2,000 at the end of FY06. The company, along with the peer Bajaj Auto, is trading firm.
The Indian markets have opened the day on a cautious note with some amount of volatility being witnessed. Auto, engineering and power stocks are leading the pack of gainers. The overall advance to decline ratio stood at 1.8:1 on the NSE. As regards global markets, the US ended in the red as the June Consumer Confidence index fell to 49.3 from a revised 54.8 in May. The European markets ended lower too yesterday, while the Asian markets are also trading mixed currently.
The BSE Sensex is trading higher by around 40 points. The NSE Nifty is up 25 points. The BSE Midcap and the BSE Smallcap indices are trading flat. The rupee is trading at 48.09 to the dollar.
Hindalco announced its FY09 results yesterday. The standalone topline declined by 5% YoY on account of fall in the LME prices of aluminium and copper. The revenues of the copper division declined by 11.9% YoY. The aluminium segment accounted for 42% of the company's total revenues during FY09 as compared to 37% in the previous fiscal. Segmental revenues were higher by 6.4% as compared to FY08. The operating profits declined by 10.7% YoY, causing EBITDA margins to contract by 1% during the fiscal. The standalone bottomline saw a fall of 22% YoY led by higher interest charges, depreciation and taxes. On a consolidated basis, the topline grew by 9.4% YoY while the bottomline declined by 84.9% YoY during the year. The board has recommended a dividend of Rs 1.35 per share (dividend yield of 2%). Aluminium stocks are trading down.
India's current account recorded a surplus of US$ 4.7 bn during 4QFY09 as against a US$ 1.5 bn deficit last year. The current account balance saw this turnaround after two years mainly due to lower trade deficit and surplus invisibles. The exports saw a drop of 24% YoY due to economic slowdown. The imports declined by 27% YoY led by decline in import oil and commodities bill. The invisibles declined by 7% YoY in the fourth quarter due to a slow growth in the software sector, while the services increased by over 45% YoY. However, the country's capital account balance remained in the negative at US$ 4.4 bn during 4QFY09. The portfolio investment declined by 26% YoY as the foreign institutional investors pulled out of the Indian equity markets due to the liquidity crisis. The fiscal deficit also shot up to Rs 907 m for April-May period, constituting 27.3% of the full-year target of Rs 3.3 trillion.
India can grow at 7% provided monsoons turn up well
If the chairman of the Prime Minister's Economic Advisory Council is to be believed, the Indian economy has the potential to grow at 7% during the current fiscal FY10. Mr. Suresh Tendulkar has noted that a favorable monetary environment coupled with the stimulus package by the government will ensure that GDP growth comes in higher than the 6.7% jump witnessed in FY09. On the former, i.e., the monetary environment, he has opined that although the Indian central bank has cut interest rates by some 4.25% between October 2008 and April 2009, they are now getting reflected gradually in bank rates, a good sign for the economy.
However, his prediction has come with a caveat that the monsoons should not fail. If they do fail, then the growth might come in considerably lower. A point of view that we cannot help but agree with.
Despite the fact that share of the agriculture sector in the country's GDP has been coming down over the years, we still have a huge chunk of our population depending on agriculture for its livelihood and hence, if monsoon plays truant, it might affect consumption patterns of this set of people thus leading to a cascading effect on the overall economy. It will be fair to say that a couple of percentage points could be easily shaved off India's GDP growth rate if monsoons come in way below the long-term average trend.
It seems like the big boys of private equity are on a comeback trail in India and China. As per The Wall Street Journal, Carlyle Group, one of the world's biggest private equity firms has stated that it has raised around US$ 1 bn for a new fund that will invest in fast growing companies in the emerging markets of India and China. It has further said that the appetite among pension funds and financial institutions for these two economies is on the rise. And there could be perhaps no better time to start a dedicated fund of this sort.
Although both the Asian nations under discussion did not get as badly impacted from the financial crisis as their western counterparts, it did test the mettle of quite a few companies and hence, the firms that have been able to pass what could be counted as one of their sternest tests in recent times, would be on the radar of investors like the Carlyle Group.
It is not as if Indian and Chinese capital markets did not have a brush with the mindset of foreign investment firms like those from the private equity group. During the peak of the last bull-run, easy money coming from hedge funds and investment banks had pushed valuations to very exorbitant levels and with this hot money being pulled out quickly in the aftermath of the crisis, valuations have once started looking reasonable from a long-term perspective.
Monday, June 22, 2009
Market Voices 22 Jun 2009
Market Voices 22 Jun 2009
After a positive start and a subsequent fall this morning, the market rebounded smartly this morning only to plunge deep down into the red in afternoon trade.
While the positive trend in Asian markets prompted a bright start, weakness in European markets and lower U.S. index futures sent stock prices tumbling down into the red this afternoon.
The Sensex, after moving in a range of around 400 points - it touched a high of 14,668 and a low of 14,269 today -, provisionally ended at the day's low, recording a big loss of 252 points or 1.74%. The Nifty closed at 4222.70, down 90.90 points or 2.11%.
Oil stocks, led by heavyweights Reliance Industries and ONGC declined sharply. Metals and realty stocks had a good spell but failed to hold at higher levels and ended on a weak note. Power, PSU, auto and IT stocks also ended lower. Select bank, capital goods and FMCG stocks posted notable gains.
Maruti Suzuki, ITC, ICICI Bank and L&T ended on a firm note. Tata Power, Grasim, Hindalco, Reliance Infra, M&M, Tata Motors, NTPC, TCS, Sterlite, Tata Steel, DLF, HDFC Bank, SBI and Bharti Airtel ended with sharp losses.
Ambuja Cements, Nalco, Unitech, HCL Tech, SAIL, RPower, Tata Comm, Reliance Capital, Suzlon, Siemens, Idea Cellular, Cairn India and GAIL India closed with notable losses.
Midcap and smallcap stocks failed to retain gains. The market breadth was weak at close.
Ambuja Cements (Rs 86.50) is a good buy at declines. The stock is likely to see some weakness in the near term, but one holding the stock can stay invested and buy more at dips. Short term traders can make an exit at Rs 100 - 105 levels and get back into the counter later at declines.
The market will be looking for global cues this week. With the U.S. Federal Reserve to meet and come out with its outlook on interest rates, the market is sure to get some direction this week.
The expiry of June series derivatives will also have a say in the market's direction. A moderate to high degree of volatility is in the offing. Investors looking for fresh exposure would do well to stay at the sidelines for now.
One can go in for bank stocks for decent gains over a short to medium term. Low priced stocks such as Syndicate Bank, UCO Bank, Central Bank of India, Dena Bank and Andhra Bank can be bought for solid gains.
Among the big ones, SBI and HDFC Bank can give fairly good returns over a 6 - 9 month period.
BHEL (Rs 2093) may see some weakness in the near term. But one can hold the stock with a stop loss near Rs 1950 for now. In the event of the stock breaching a support at that level, a fall to Rs 1800 or even lower is not ruled out. Still, one willing to wait long term can use such a dip to increas exposure to the counter.
It is widely speculated in the market circles that Neyveli Lignite Corporation could be one of the candidates on the government's disinvestment list. The stock, currently traded at Rs 120, is a good one for long term. One can go in for it at sharp declines.
Reliance Communications is reported to have started preliminary talks with China Mobile, the world's largest mobile company, for a strategic alliance and possible equity participation of 5 to 6 per cent. The stock is trading at Rs 302, down by around a per cent. Investors holding the stock with a long term plan can continue to stay invested and increase exposure at dips.
Parsvnath Developers has announced that its shareholders have approved raising up to Rs 2,500 crore through issue of securities and to increase the foreign investment limit in the company by up to 40 per cent. The stock, traded at Rs 83, can be tried at declines for long term.
One can go in for Bhart Airtel (Rs 801) at sharp declines. Though the stock is likely to see some downside in the near run, its long term prospect continue to remain bright. One would do well to pick up the stock in a phased manner.
Infrastructure stocks GMR Infra, Gammon, PBA Infrastructure, RIIL and IVRCL Infrastructure may see some weak spells in the near run. however, investors looking at long term can treat sharp dips as opportunities to buy these stocks.
Reliance Industries (cmp Rs 1996) can be picked up in a staggered manner at declines. Long term investors can stay invested in the stock and look to buy more around Rs 1850- 1875 levels. Short term traders can use rallies to book profits and buy back later at declines.
Patni Computer Systems (Rs 258) can move up to Rs 280 or even higher if it manages to break a resistance near Rs 265. One holding the stock with a long term view can stay invested with a trailing stop loss. Short term traders can exit around Rs 280 and re-enter later at declines. For now, a stop loss can be placed near Rs 220.
Jindal Saw has bagged orders worth over Rs 1,000 crore for supply of large diameter pipes and ductile iron pipes for domestic and export markets. The domeistic supply orders are from GAIL and HPCL while the export orders are primarily from middle-easter market. The total order book of JSL now stands at around Rs 3,600 crore. The Jindal Saw stock is up by as much as 4.55% at Rs 382.40 at present.
Dolphin Offshore Enterprises India Ltd has informed that the company has received an LOI for Structural Modification work at unmanned platforms in MH for deployment of Modular rig on turn key basis by M/s. Instrumentation Ltd. The value of the said LOI is around Rs 106 crore and the completion date of this contract, which will commence shortly, is May 28, 2011.
McNally Bharat Engineering Company Ltd has received an order from Paradip Port Trust for Design, Manufacture, Supply, Installation and Commissioning of two 3000 TPH capacity Reclaimers at Paradip, in Jagatsinghpur district, Orissa. The value of the order is estimated to be around Rs 30.60 crore including taxes and duties.
ABB Limited has won orders worth worth Rs 550 million to provide the electrical infrastructure for modernization of Kolkatta airport.
The ABB stock is up 1.5% at Rs 752.25 at present. The stock, after opening at Rs 750, rose to Rs 766.85 earlier this morning.
Market Outlook
The market is likely to open on a cautiously positive note this morning. Short-covering ahead of derivatives expiry and bargain hunting after some severe setbacks suffered in the previous week may buoy up prices of a few front line stocks. Some volatility is in the offing.
Sector Watch
Technology stocks are likely to attract attention. Some battered down metals and realty stocks are expected to bounce back. Bank stocks may edge higher. FMCG and pharma sectors will see stock specific action.
Scrip Watch
Neyveli Lignite Corporation Limited has posted a net profit of Rs 8210.90 million for the year ended March 31, 2009 as compared to Rs 11015.70 million for the year ended March 31, 2008. Total Income has increased from Rs 36380.70 million for the year ended March 31, 2008 to Rs 40198.90 million for the year ended March 31, 2009.
SBI may edge higher with the bank's board approving the acquisition of State Bank of Indore. State Bank of India has already absorbed State Bank of Saurashtra and has said it is progressively looking to merge its other associate banks as well.
DLF is likely to be in focus on reports that the company is close to raising $300 million through external commercial borrowing to invest in its integrated township projects.
Oil stocks will be in focus on reports that the oil ministry is examining a proposal to force oil and gas producers to pay royalties to the government on the basis of sale prices rather than the present system of wellhead value. ONGC, Cairn India and RIL are likely to be affected by the move.
Sun Pharmaceutical Industries is likely to see action following the company getting the US FDA nod to launch generic version of Pfizer's blood pressure drug Accupril. The drug has annual sales of about $45 million in the United States.
Macro and Market Factors
The Wall Street ended on a mixed note on Friday last week after a lackluster session. Asian markets are exhibiting a steady trend today and this is likely to prompt a positive start on the Indian bourses this morning.
After a positive start and a subsequent fall this morning, the market rebounded smartly this morning only to plunge deep down into the red in afternoon trade.
While the positive trend in Asian markets prompted a bright start, weakness in European markets and lower U.S. index futures sent stock prices tumbling down into the red this afternoon.
The Sensex, after moving in a range of around 400 points - it touched a high of 14,668 and a low of 14,269 today -, provisionally ended at the day's low, recording a big loss of 252 points or 1.74%. The Nifty closed at 4222.70, down 90.90 points or 2.11%.
Oil stocks, led by heavyweights Reliance Industries and ONGC declined sharply. Metals and realty stocks had a good spell but failed to hold at higher levels and ended on a weak note. Power, PSU, auto and IT stocks also ended lower. Select bank, capital goods and FMCG stocks posted notable gains.
Maruti Suzuki, ITC, ICICI Bank and L&T ended on a firm note. Tata Power, Grasim, Hindalco, Reliance Infra, M&M, Tata Motors, NTPC, TCS, Sterlite, Tata Steel, DLF, HDFC Bank, SBI and Bharti Airtel ended with sharp losses.
Ambuja Cements, Nalco, Unitech, HCL Tech, SAIL, RPower, Tata Comm, Reliance Capital, Suzlon, Siemens, Idea Cellular, Cairn India and GAIL India closed with notable losses.
Midcap and smallcap stocks failed to retain gains. The market breadth was weak at close.
Ambuja Cements (Rs 86.50) is a good buy at declines. The stock is likely to see some weakness in the near term, but one holding the stock can stay invested and buy more at dips. Short term traders can make an exit at Rs 100 - 105 levels and get back into the counter later at declines.
The market will be looking for global cues this week. With the U.S. Federal Reserve to meet and come out with its outlook on interest rates, the market is sure to get some direction this week.
The expiry of June series derivatives will also have a say in the market's direction. A moderate to high degree of volatility is in the offing. Investors looking for fresh exposure would do well to stay at the sidelines for now.
One can go in for bank stocks for decent gains over a short to medium term. Low priced stocks such as Syndicate Bank, UCO Bank, Central Bank of India, Dena Bank and Andhra Bank can be bought for solid gains.
Among the big ones, SBI and HDFC Bank can give fairly good returns over a 6 - 9 month period.
BHEL (Rs 2093) may see some weakness in the near term. But one can hold the stock with a stop loss near Rs 1950 for now. In the event of the stock breaching a support at that level, a fall to Rs 1800 or even lower is not ruled out. Still, one willing to wait long term can use such a dip to increas exposure to the counter.
It is widely speculated in the market circles that Neyveli Lignite Corporation could be one of the candidates on the government's disinvestment list. The stock, currently traded at Rs 120, is a good one for long term. One can go in for it at sharp declines.
Reliance Communications is reported to have started preliminary talks with China Mobile, the world's largest mobile company, for a strategic alliance and possible equity participation of 5 to 6 per cent. The stock is trading at Rs 302, down by around a per cent. Investors holding the stock with a long term plan can continue to stay invested and increase exposure at dips.
Parsvnath Developers has announced that its shareholders have approved raising up to Rs 2,500 crore through issue of securities and to increase the foreign investment limit in the company by up to 40 per cent. The stock, traded at Rs 83, can be tried at declines for long term.
One can go in for Bhart Airtel (Rs 801) at sharp declines. Though the stock is likely to see some downside in the near run, its long term prospect continue to remain bright. One would do well to pick up the stock in a phased manner.
Infrastructure stocks GMR Infra, Gammon, PBA Infrastructure, RIIL and IVRCL Infrastructure may see some weak spells in the near run. however, investors looking at long term can treat sharp dips as opportunities to buy these stocks.
Reliance Industries (cmp Rs 1996) can be picked up in a staggered manner at declines. Long term investors can stay invested in the stock and look to buy more around Rs 1850- 1875 levels. Short term traders can use rallies to book profits and buy back later at declines.
Patni Computer Systems (Rs 258) can move up to Rs 280 or even higher if it manages to break a resistance near Rs 265. One holding the stock with a long term view can stay invested with a trailing stop loss. Short term traders can exit around Rs 280 and re-enter later at declines. For now, a stop loss can be placed near Rs 220.
Jindal Saw has bagged orders worth over Rs 1,000 crore for supply of large diameter pipes and ductile iron pipes for domestic and export markets. The domeistic supply orders are from GAIL and HPCL while the export orders are primarily from middle-easter market. The total order book of JSL now stands at around Rs 3,600 crore. The Jindal Saw stock is up by as much as 4.55% at Rs 382.40 at present.
Dolphin Offshore Enterprises India Ltd has informed that the company has received an LOI for Structural Modification work at unmanned platforms in MH for deployment of Modular rig on turn key basis by M/s. Instrumentation Ltd. The value of the said LOI is around Rs 106 crore and the completion date of this contract, which will commence shortly, is May 28, 2011.
McNally Bharat Engineering Company Ltd has received an order from Paradip Port Trust for Design, Manufacture, Supply, Installation and Commissioning of two 3000 TPH capacity Reclaimers at Paradip, in Jagatsinghpur district, Orissa. The value of the order is estimated to be around Rs 30.60 crore including taxes and duties.
ABB Limited has won orders worth worth Rs 550 million to provide the electrical infrastructure for modernization of Kolkatta airport.
The ABB stock is up 1.5% at Rs 752.25 at present. The stock, after opening at Rs 750, rose to Rs 766.85 earlier this morning.
Market Outlook
The market is likely to open on a cautiously positive note this morning. Short-covering ahead of derivatives expiry and bargain hunting after some severe setbacks suffered in the previous week may buoy up prices of a few front line stocks. Some volatility is in the offing.
Sector Watch
Technology stocks are likely to attract attention. Some battered down metals and realty stocks are expected to bounce back. Bank stocks may edge higher. FMCG and pharma sectors will see stock specific action.
Scrip Watch
Neyveli Lignite Corporation Limited has posted a net profit of Rs 8210.90 million for the year ended March 31, 2009 as compared to Rs 11015.70 million for the year ended March 31, 2008. Total Income has increased from Rs 36380.70 million for the year ended March 31, 2008 to Rs 40198.90 million for the year ended March 31, 2009.
SBI may edge higher with the bank's board approving the acquisition of State Bank of Indore. State Bank of India has already absorbed State Bank of Saurashtra and has said it is progressively looking to merge its other associate banks as well.
DLF is likely to be in focus on reports that the company is close to raising $300 million through external commercial borrowing to invest in its integrated township projects.
Oil stocks will be in focus on reports that the oil ministry is examining a proposal to force oil and gas producers to pay royalties to the government on the basis of sale prices rather than the present system of wellhead value. ONGC, Cairn India and RIL are likely to be affected by the move.
Sun Pharmaceutical Industries is likely to see action following the company getting the US FDA nod to launch generic version of Pfizer's blood pressure drug Accupril. The drug has annual sales of about $45 million in the United States.
Macro and Market Factors
The Wall Street ended on a mixed note on Friday last week after a lackluster session. Asian markets are exhibiting a steady trend today and this is likely to prompt a positive start on the Indian bourses this morning.
Sunday, June 21, 2009
5 Steps To Becoming A Stock Market Guru
5 Steps To Becoming A Stock Market Guru By Larry Holmes
It has occurred to me that many of the readers of this article may be interested in a career change. If so, I suggest that becoming a stock market guru may be worthy of your consideration. It's a job that -- if you follow my advice -- pays extremely
well, doesn't take much your time, requires almost no experience, and can potentially bring you fame and fortune.
I have been observing market gurus for many years and have noticed that there are certain traits that the successful ones have in common. So to get your new venture off to a roaring start, I'm going to tell you exactly how to be successful as a stock
market guru.
1. First of all, you must do something to get the attention of the financial media. The way to do that is to make extreme predictions. No "the market is going up 10%" or "down 5%" kind of forecasts. You have to say things like "the Dow is going to 36,000" or "button down the hatches, the market is going to crash any day now." The best way to decide whether to be bullish or bearish is to measure the mood of the public. You will be much more popular if you're wildly bullish at market tops or wildly bearish at market bottoms. You want to tell people what they're already predisposed to
believe. Also, you can never change your mind. The media doesn't like that. So be a perma-bull or a perma-bear. But
whatever you do, never, ever waver from your original stance.
2. After you have decided whether you want to make a living being extremely bullish or extremely bearish it is very
important that no one remembers when you first made your original prediction. This one is going to be tricky and requires
some skill. Don't ever let anyone pin you down on timing issues. The way to do that is to just keep repeating your
prediction over and over again until everyone forgets how long you've been making the forecast. For role models, watch
the politicians. They are experts at not allowing anyone to pin them down on anything that they prefer you not to
remember.
3. You must repeat your market prediction loudly, often, and with extreme confidence. When the market goes against you, simply keep repeating that you're very confident of your stance and you have no doubt that the market will go your way
very soon. Again, you must make people forget about timing issues and the best way to do that is through repetition.
4. The market will eventually go your way. It may take years, but it will happen. Now listen closely -- whenever the market finally goes your direction, no matter how small a move it is, proudly declare victory. I mean shout it from the roof tops.
You were right all along and it's all because of your astute analysis. Do not make any mention of when you first made your original market call. If you are cornered and you must make a comment about your entry point, just say that you have been averaging into your position for quite some time. That way no one will know that you actually lost a lot of money.
5. Speaking of losing money, never follow your own predictions by investing your own funds. Otherwise, the income that you make as a famous guru will be taken away from you by the market !!
It has occurred to me that many of the readers of this article may be interested in a career change. If so, I suggest that becoming a stock market guru may be worthy of your consideration. It's a job that -- if you follow my advice -- pays extremely
well, doesn't take much your time, requires almost no experience, and can potentially bring you fame and fortune.
I have been observing market gurus for many years and have noticed that there are certain traits that the successful ones have in common. So to get your new venture off to a roaring start, I'm going to tell you exactly how to be successful as a stock
market guru.
1. First of all, you must do something to get the attention of the financial media. The way to do that is to make extreme predictions. No "the market is going up 10%" or "down 5%" kind of forecasts. You have to say things like "the Dow is going to 36,000" or "button down the hatches, the market is going to crash any day now." The best way to decide whether to be bullish or bearish is to measure the mood of the public. You will be much more popular if you're wildly bullish at market tops or wildly bearish at market bottoms. You want to tell people what they're already predisposed to
believe. Also, you can never change your mind. The media doesn't like that. So be a perma-bull or a perma-bear. But
whatever you do, never, ever waver from your original stance.
2. After you have decided whether you want to make a living being extremely bullish or extremely bearish it is very
important that no one remembers when you first made your original prediction. This one is going to be tricky and requires
some skill. Don't ever let anyone pin you down on timing issues. The way to do that is to just keep repeating your
prediction over and over again until everyone forgets how long you've been making the forecast. For role models, watch
the politicians. They are experts at not allowing anyone to pin them down on anything that they prefer you not to
remember.
3. You must repeat your market prediction loudly, often, and with extreme confidence. When the market goes against you, simply keep repeating that you're very confident of your stance and you have no doubt that the market will go your way
very soon. Again, you must make people forget about timing issues and the best way to do that is through repetition.
4. The market will eventually go your way. It may take years, but it will happen. Now listen closely -- whenever the market finally goes your direction, no matter how small a move it is, proudly declare victory. I mean shout it from the roof tops.
You were right all along and it's all because of your astute analysis. Do not make any mention of when you first made your original market call. If you are cornered and you must make a comment about your entry point, just say that you have been averaging into your position for quite some time. That way no one will know that you actually lost a lot of money.
5. Speaking of losing money, never follow your own predictions by investing your own funds. Otherwise, the income that you make as a famous guru will be taken away from you by the market !!
Friday, June 19, 2009
Closing bell 18 Jun 2009
Closing bell 18 Jun 2009
Persistent selling activity during the second half of today’s trading session led the Indian markets into the negative territory, where they continued to languish for the rest of the trading session. The BSE-Sensex ended the day lower by about 260 points, while the NSE-Nifty closed lower by about 105 points. Stocks from the mid-cap and small-cap spaces too ended the day on a negative note, recording losses of 2.9% and 3.7% respectively. Barring stocks from the IT sector, selling activity was witnessed in stocks across the board led by realty, power and metals.
Most other Asian markets ended the day in the red today. The European indices are currently trading mixed. Rupee was trading at 48.25 against the US dollar at the time of writing.
Fresh deals struck by Indian IT companies in the recent past are a testimony to their eminent position in the global outsourcing arena. As per a leading daily, Infosys has bagged a US$ 10 m worth BPO project from Microsoft. As per the deal, it will provide back-end support activities like data processing to the software giant for three years. In another deal, the European telecom major Alcatel-Lucent too is all set to award an over US$ 15 m worth back-end support project to Infosys BPO. All such deals reinforcing the need for Indian IT/ITES oriented services at a global level suggest that any sort of protectionist measures may not do significant harm to the industry.
Trent Ltd. announced results yesterday. The company reported flat sales on a standalone basis during FY09, while on a consolidated basis revenues were higher by 18% YoY. The slowing economic growth impacted the lifestyle retailing business of the company. The increased cost of operations dented the company’s operating margins. Compared to a 63% YoY decrease in operating profits, the decline in bottomline was lower at 19% YoY. Higher other income and lower taxes helped restrict the fall in net profits. On a consolidated basis, net profits were down by 97% YoY. Apart from the gloomy environment, the profits were also lower on account of its Hypermarket business still being in its incubation period. The company opened 8 Westside stores, two Sisley stores and one Fashion Yatra store during the fourth quarter taking the total number of Westside stores to 36 and the total number of stores under various formats to 42. The company recommended a dividend of Rs 5.5 per share, which translates into dividend yield of 1.1% at the current price.
Inflation dropped into negative territory and stood at -1.6% (deflation) during the first week of June after an annual inflation of 0.13% in the week before that. This may be attributed to the high base effect of last year’s prices wherein commodity prices were at their peak. It may be noted that retail inflation as measured by consumer price index (CPI) is still high at around 8%. Inflation hit a 13 year high of 12.9% in August 2008, but has been decelerating steadily since then. Interestingly, this marks the first annual decline in wholesale prices since the government started releasing weekly data in 1977.
Amidst market wide selling, IT stocks are still trading in the green, led by Infosys and TCS. As per a leading daily, India’s largest IT company, TCS is foraying into the e-governance arena in order to combat the global meltdown. The company sees increased momentum for more e-governance projects, both at state and central level, as these are important for improving the government’s efficiency in delivering services. The company is already working on e-Passport scheme for the ministry of external affairs and is targeting more such areas. Other leading IT players like Infosys and Wipro are also eyeing a share of this pie.
Aluminium stocks are trading weak led by Hindalco and Nalco. As per a leading business daily, Hindalco Industries is close to acquiring coal mine assets in Australia and the deal size is estimated between Rs 3.4 to Rs 3.9 bn. It is believed that the company has already shortlisted one mine with coal reserves of around 120 m tonnes (MT). It may be noted that of late Hindalco has been scouting for acquiring coal mines down under as the commodity prices have corrected by about 50% as compared to six months back, making it the right time for acquiring resources. The proposed coal reserves will help Hindalco meets its capacity augmentation plans in Orissa. The company plans to increase its aluminium refinery capacity to 1.5 MT from 1 MT and the smelter capacity from 26 MT to 72 MT.
The Indian markets continued to gain ground during the previous two hours of trade on the back of continued buying among the index heavyweights. Currently, stocks from the software, banking and auto sectors are leading the pack of gainers, while select metal and cement stocks are trading weak. The overall decline to advance ratio is poised at 2.5 to 1 on the BSE.
The BSE Sensex is trading higher by around 70 points, while the NSE Nifty is trading weak, down by around 15 points. The BSE Midcap and the BSE Smallcap indices are trading lower, down by around 0.7% and 1.3% respectively. The rupee is trading at 48.09 to the dollar.
As per a leading business daily, following on the heels of the country’s largest lender SBI, HDFC and HDFC Bank are set to reduce their deposit rates by up to 25 basis points (0.25%). While the rates of HDFC will be effective today, the new rates for HDFC Bank will be applicable from June 19. With respect to the lending rate, HDFC usually lowers the rates when its sees decline in trend of the costs of funds. Further, HDFC will keep a close watch on the Union Budget to find a clear trend on the interest rate movement and take decision on the rate accordingly. Even after lowering the deposit rates, HDFC still offers higher returns to depositors with a gap of around 0.5% compared with that of SBI. On the other hand, HDFC Bank has cut the rates as there has been a downward bias in the bulk deposit rates on account of enough liquidity in the market. This move will help both the institution and the bank augment their net margins. Banking stocks are currently trading mixed.
Pharma stocks are also trading mixed. While Dr. Reddy’s and Ranbaxy are trading higher, Glenmark Pharma is in the red. As per a leading business daily, the skincare drug major, Medicis has filed a lawsuit against Ranbaxy as it believes that the latter’s Para IV filing has infringed its patent for its branded drug ‘Solodyne’. According to the drug tracking agency IMS, the sales of ‘Solodyne’ were around US$ 365 m during CY08 in the US. ‘Solodyne’ accounts for 50% revenues of Medicis. Such litigation is common in the US as the drug innovator has to sue the generic company, which has filed the Para IV ANDA, within 45 days of intimation. If Ranbaxy wins the litigation it will get 180 days marketing exclusivity for the drug.
With some amount of volatility, the Indian markets have opened the day’s proceedings on a cautious note. Buying activity is being witnessed among banking, pharma, metal and telecom stocks. However, select software, engineering and power stocks are trading in the red. The overall decline to advance ratio is poised at of 1.08 to 1 on the NSE. As regards global markets, the NASDAQ ended positive yesterday led by a tech rally. However, the broader market ended lower after Standard & Poor's cut its outlook on 22 banks. The European markets ended weak yesterday. The Asian markets are trading mixed.
The BSE Sensex is trading lower by around 25 points. The NSE Nifty is up 5 points. Both the BSE Midcap and BSE Smallcap index are trading flat. The rupee is trading at 47.05 to the dollar.
Titan Industries has set a goal of crossing US$ 1 bn in revenues during FY10. The company expects around 65% of the targeted revenues to come from gold ornaments. The company is one of the premier players in India's Rs 800 bn jewellery market. Semi-urban and rural areas account for nearly 60% of the total market. Titan sells jewellery through its GoldPlus and Tanishq retail chains. While GoldPlus addresses the rural and semi-urban mass market and focuses on plain gold jewellery, Tanishq focuses on the metros. The company expects GoldPlus to genearte Rs 20 bn of revenues over the next four-five years. The jewellery segment grew by 36% YoY during FY09, contributing around 72% to the revenues. The jewellery sector in India has grown at a compounded annual rate (CAGR) of approximately 16% over the past three years. As against that, the organised jewellery sector has showcased over 30% CAGR during the same period. On account of jewellery retailing in India undergoing a slow transformation from a largely unorganised sector to a more organised one, the company expects good growth. Retail stocks are trading firm.
Pharma major, Wockhardt has sold its German business Esparma to Mova GmbH. Mova is a subsidiary of Germany's Lindopharm GmbH. Wockhardt had acquired Esparma business in May 2004 for around US$ 11 m. Although the company has not disclosed the size of the deal, the deal size has been pegged at Rs 1.2 bn. The company is also planning to sell its animal healthcare business, of which Pfizer is reported to be one of the interested parties. The move is part of Wockhardt’s plan to restructure its business. The company is having debt of around Rs 34 bn on its books and has sought corporate debt restructuring to tackle the situation. It is also looking to divest its stake in non-core businesses to raise money to repay the debt. Pharma stocks have opened the day’s proceedings on a positive note.
That Dr Doom aka Nouriel Roubini is not seeing any 'green shoots' (a metaphor used to describe initial signs of economic recovery) has been largely publicized in the media in the past few weeks. However, for the first time in many months, he has expressed his views on the Indian economy and its stock market and sadly, it does not make for a very good reading. Speaking to leading business daily, Roubini was of the opinion that the Indian stock markets along with other emerging market equities may have run up too soon too fast and there is a potential asset bubble building here. Although he agrees that part of the reason the stocks have rallied is because of better fundamentals in these markets, but he also remains concerned about the easy-money situation which is pushing up asset prices sharply.
Roubini also proffered his views on whether inflation because of money printing by most governments or a deflation because of rising unemployment and lower consumer spending is staring us in the face. He opined that while in the near term, the global economy will be gripped by a deflationary spiral, eventually all the money printing by the government will go into goods inflation, leading to runaway inflation. Hence, in the longer term, it will be the inflation that will act as dampener while the global economic growth will be beset with problems of deflation in the near term. Going by the man's track record, we better take his comments seriously.
Obamaspeak hits US banking stocks
Following the sell-off seen in the US markets yesterday, the Asian markets have opened today on a weak note, with most benchmark indices trading down in a range of 1-2%. This adds to the decline that was seen in these markets yesterday on the back of decline in commodity stocks. Today, the culprits seem to be banking and financial stocks given that in the US yesterday, President Obama proposed sweeping new 'rules of the road' for the country's financial system to bring it to task.
Obama has in fact blamed the financial crisis on a culture of irresponsibility that had taken root from Wall Street to Washington to Main Street. The new regulations outlined by Obama's team are likely to give new powers to the US central bank and the Federal Reserve to oversee the country's banking and financial system or rather police the entire financial system for risky products.
Infosys believes that the worst is over
The past 18 months have probably been one of the toughest for the Indian IT industry as clients, especially in the North American region, have been cutting down their spending on account of the slowdown.
However, the management of IT major Infosys expects the 'worst to be over'. As per Mr. Gopalakrishnan "Our clients are more confident about the current situation because they believe that we are at the bottom and it's highly unlikely that we see something unforeseen (such as bankruptcies and failures) in the future." As such, the company expects clients to increase spending going forward. He also did add that demand of outsourcing services, however, will take at least a year to recover.
However, the company has stuck to its revenue estimate, which it lowered for the first time ever last year.
Persistent selling activity during the second half of today’s trading session led the Indian markets into the negative territory, where they continued to languish for the rest of the trading session. The BSE-Sensex ended the day lower by about 260 points, while the NSE-Nifty closed lower by about 105 points. Stocks from the mid-cap and small-cap spaces too ended the day on a negative note, recording losses of 2.9% and 3.7% respectively. Barring stocks from the IT sector, selling activity was witnessed in stocks across the board led by realty, power and metals.
Most other Asian markets ended the day in the red today. The European indices are currently trading mixed. Rupee was trading at 48.25 against the US dollar at the time of writing.
Fresh deals struck by Indian IT companies in the recent past are a testimony to their eminent position in the global outsourcing arena. As per a leading daily, Infosys has bagged a US$ 10 m worth BPO project from Microsoft. As per the deal, it will provide back-end support activities like data processing to the software giant for three years. In another deal, the European telecom major Alcatel-Lucent too is all set to award an over US$ 15 m worth back-end support project to Infosys BPO. All such deals reinforcing the need for Indian IT/ITES oriented services at a global level suggest that any sort of protectionist measures may not do significant harm to the industry.
Trent Ltd. announced results yesterday. The company reported flat sales on a standalone basis during FY09, while on a consolidated basis revenues were higher by 18% YoY. The slowing economic growth impacted the lifestyle retailing business of the company. The increased cost of operations dented the company’s operating margins. Compared to a 63% YoY decrease in operating profits, the decline in bottomline was lower at 19% YoY. Higher other income and lower taxes helped restrict the fall in net profits. On a consolidated basis, net profits were down by 97% YoY. Apart from the gloomy environment, the profits were also lower on account of its Hypermarket business still being in its incubation period. The company opened 8 Westside stores, two Sisley stores and one Fashion Yatra store during the fourth quarter taking the total number of Westside stores to 36 and the total number of stores under various formats to 42. The company recommended a dividend of Rs 5.5 per share, which translates into dividend yield of 1.1% at the current price.
Inflation dropped into negative territory and stood at -1.6% (deflation) during the first week of June after an annual inflation of 0.13% in the week before that. This may be attributed to the high base effect of last year’s prices wherein commodity prices were at their peak. It may be noted that retail inflation as measured by consumer price index (CPI) is still high at around 8%. Inflation hit a 13 year high of 12.9% in August 2008, but has been decelerating steadily since then. Interestingly, this marks the first annual decline in wholesale prices since the government started releasing weekly data in 1977.
Amidst market wide selling, IT stocks are still trading in the green, led by Infosys and TCS. As per a leading daily, India’s largest IT company, TCS is foraying into the e-governance arena in order to combat the global meltdown. The company sees increased momentum for more e-governance projects, both at state and central level, as these are important for improving the government’s efficiency in delivering services. The company is already working on e-Passport scheme for the ministry of external affairs and is targeting more such areas. Other leading IT players like Infosys and Wipro are also eyeing a share of this pie.
Aluminium stocks are trading weak led by Hindalco and Nalco. As per a leading business daily, Hindalco Industries is close to acquiring coal mine assets in Australia and the deal size is estimated between Rs 3.4 to Rs 3.9 bn. It is believed that the company has already shortlisted one mine with coal reserves of around 120 m tonnes (MT). It may be noted that of late Hindalco has been scouting for acquiring coal mines down under as the commodity prices have corrected by about 50% as compared to six months back, making it the right time for acquiring resources. The proposed coal reserves will help Hindalco meets its capacity augmentation plans in Orissa. The company plans to increase its aluminium refinery capacity to 1.5 MT from 1 MT and the smelter capacity from 26 MT to 72 MT.
The Indian markets continued to gain ground during the previous two hours of trade on the back of continued buying among the index heavyweights. Currently, stocks from the software, banking and auto sectors are leading the pack of gainers, while select metal and cement stocks are trading weak. The overall decline to advance ratio is poised at 2.5 to 1 on the BSE.
The BSE Sensex is trading higher by around 70 points, while the NSE Nifty is trading weak, down by around 15 points. The BSE Midcap and the BSE Smallcap indices are trading lower, down by around 0.7% and 1.3% respectively. The rupee is trading at 48.09 to the dollar.
As per a leading business daily, following on the heels of the country’s largest lender SBI, HDFC and HDFC Bank are set to reduce their deposit rates by up to 25 basis points (0.25%). While the rates of HDFC will be effective today, the new rates for HDFC Bank will be applicable from June 19. With respect to the lending rate, HDFC usually lowers the rates when its sees decline in trend of the costs of funds. Further, HDFC will keep a close watch on the Union Budget to find a clear trend on the interest rate movement and take decision on the rate accordingly. Even after lowering the deposit rates, HDFC still offers higher returns to depositors with a gap of around 0.5% compared with that of SBI. On the other hand, HDFC Bank has cut the rates as there has been a downward bias in the bulk deposit rates on account of enough liquidity in the market. This move will help both the institution and the bank augment their net margins. Banking stocks are currently trading mixed.
Pharma stocks are also trading mixed. While Dr. Reddy’s and Ranbaxy are trading higher, Glenmark Pharma is in the red. As per a leading business daily, the skincare drug major, Medicis has filed a lawsuit against Ranbaxy as it believes that the latter’s Para IV filing has infringed its patent for its branded drug ‘Solodyne’. According to the drug tracking agency IMS, the sales of ‘Solodyne’ were around US$ 365 m during CY08 in the US. ‘Solodyne’ accounts for 50% revenues of Medicis. Such litigation is common in the US as the drug innovator has to sue the generic company, which has filed the Para IV ANDA, within 45 days of intimation. If Ranbaxy wins the litigation it will get 180 days marketing exclusivity for the drug.
With some amount of volatility, the Indian markets have opened the day’s proceedings on a cautious note. Buying activity is being witnessed among banking, pharma, metal and telecom stocks. However, select software, engineering and power stocks are trading in the red. The overall decline to advance ratio is poised at of 1.08 to 1 on the NSE. As regards global markets, the NASDAQ ended positive yesterday led by a tech rally. However, the broader market ended lower after Standard & Poor's cut its outlook on 22 banks. The European markets ended weak yesterday. The Asian markets are trading mixed.
The BSE Sensex is trading lower by around 25 points. The NSE Nifty is up 5 points. Both the BSE Midcap and BSE Smallcap index are trading flat. The rupee is trading at 47.05 to the dollar.
Titan Industries has set a goal of crossing US$ 1 bn in revenues during FY10. The company expects around 65% of the targeted revenues to come from gold ornaments. The company is one of the premier players in India's Rs 800 bn jewellery market. Semi-urban and rural areas account for nearly 60% of the total market. Titan sells jewellery through its GoldPlus and Tanishq retail chains. While GoldPlus addresses the rural and semi-urban mass market and focuses on plain gold jewellery, Tanishq focuses on the metros. The company expects GoldPlus to genearte Rs 20 bn of revenues over the next four-five years. The jewellery segment grew by 36% YoY during FY09, contributing around 72% to the revenues. The jewellery sector in India has grown at a compounded annual rate (CAGR) of approximately 16% over the past three years. As against that, the organised jewellery sector has showcased over 30% CAGR during the same period. On account of jewellery retailing in India undergoing a slow transformation from a largely unorganised sector to a more organised one, the company expects good growth. Retail stocks are trading firm.
Pharma major, Wockhardt has sold its German business Esparma to Mova GmbH. Mova is a subsidiary of Germany's Lindopharm GmbH. Wockhardt had acquired Esparma business in May 2004 for around US$ 11 m. Although the company has not disclosed the size of the deal, the deal size has been pegged at Rs 1.2 bn. The company is also planning to sell its animal healthcare business, of which Pfizer is reported to be one of the interested parties. The move is part of Wockhardt’s plan to restructure its business. The company is having debt of around Rs 34 bn on its books and has sought corporate debt restructuring to tackle the situation. It is also looking to divest its stake in non-core businesses to raise money to repay the debt. Pharma stocks have opened the day’s proceedings on a positive note.
That Dr Doom aka Nouriel Roubini is not seeing any 'green shoots' (a metaphor used to describe initial signs of economic recovery) has been largely publicized in the media in the past few weeks. However, for the first time in many months, he has expressed his views on the Indian economy and its stock market and sadly, it does not make for a very good reading. Speaking to leading business daily, Roubini was of the opinion that the Indian stock markets along with other emerging market equities may have run up too soon too fast and there is a potential asset bubble building here. Although he agrees that part of the reason the stocks have rallied is because of better fundamentals in these markets, but he also remains concerned about the easy-money situation which is pushing up asset prices sharply.
Roubini also proffered his views on whether inflation because of money printing by most governments or a deflation because of rising unemployment and lower consumer spending is staring us in the face. He opined that while in the near term, the global economy will be gripped by a deflationary spiral, eventually all the money printing by the government will go into goods inflation, leading to runaway inflation. Hence, in the longer term, it will be the inflation that will act as dampener while the global economic growth will be beset with problems of deflation in the near term. Going by the man's track record, we better take his comments seriously.
Obamaspeak hits US banking stocks
Following the sell-off seen in the US markets yesterday, the Asian markets have opened today on a weak note, with most benchmark indices trading down in a range of 1-2%. This adds to the decline that was seen in these markets yesterday on the back of decline in commodity stocks. Today, the culprits seem to be banking and financial stocks given that in the US yesterday, President Obama proposed sweeping new 'rules of the road' for the country's financial system to bring it to task.
Obama has in fact blamed the financial crisis on a culture of irresponsibility that had taken root from Wall Street to Washington to Main Street. The new regulations outlined by Obama's team are likely to give new powers to the US central bank and the Federal Reserve to oversee the country's banking and financial system or rather police the entire financial system for risky products.
Infosys believes that the worst is over
The past 18 months have probably been one of the toughest for the Indian IT industry as clients, especially in the North American region, have been cutting down their spending on account of the slowdown.
However, the management of IT major Infosys expects the 'worst to be over'. As per Mr. Gopalakrishnan "Our clients are more confident about the current situation because they believe that we are at the bottom and it's highly unlikely that we see something unforeseen (such as bankruptcies and failures) in the future." As such, the company expects clients to increase spending going forward. He also did add that demand of outsourcing services, however, will take at least a year to recover.
However, the company has stuck to its revenue estimate, which it lowered for the first time ever last year.
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