Today, Nifty has support at 4,623 and resistance at 4,819 and BSE Sensex has support at 15,314 and resistance at 15,993
Buy NDTV (391)
Buy Tata Chem (289)
Buy Cent Textile (742)
Sell Nalco (448)
Sell Tulip (841)
Target and sl for clients only
we see the key indices in India opening on a cautious note. Yesterday, the bulls could not hang on to strong gains made in the morning though Asian markets were on a strong wicket. Traded volume improved over the Tuesday's session but remain quite pathetic to say the least. And, if the withdrawal of the STT benefit under Section 88E was not enough the street was abuzz with rumours of rationalisation in stamp duty. According to some market observers, that may have led to the steep fall in the key indices from the day's high. Having said that, we would refrain from speculation. As far as the market trend is concerned, much will continue to hinge on the emerging global equations, fund flows, local economic outlook and of course on corporate earnings and guidance for the current fiscal year.
We see the market rangebound within a couple of thousand points and choppy in the near term. No major breakout is expected till things start to stabilise, both locally as well as globally. The next few months will be painful for the bulls, though there will always be opportunities to pick up good quality stocks for the long haul which one should be careful in judging. Stick to the large caps as you build your portfolio. A small portion you may punt in mid-caps. Shares of Gammon Infrastructure Projects will get listed on the bourses today.
The steel stocks lost their shine after reports stated that the government would direct the steel manufacturers to cut prices by 10-20% in a month. Tata Steel slipped 3.2% to Rs645, Tata Sponge declined 1.6% to Rs248, Jindal Steel was down 2% to Rs1973 and SAIL lost 4% to Rs167.
Airline stocks gained altitude after media reports stated that the airline companies would hike fares following an increase in jet fuel prices. Spice Jet edged higher by 0.5% to Rs41, Jet Airways was flat at Rs547.
Spice Telecom rallied by over 10% to Rs33 after media reports stated that Mr Modi, Chairman and Managing Director want to dilute promoter holding in Spice Telecom in favour of foreign players UAE's Telecommunications Corporation Etisalat. The total promoter holding in Spice Telecom is 40.8%. The scrip touched an intra-day high of Rs36 and a low of Rs32 and recorded volumes of over 37,00,000 shares on BSE.
Prithvi Info edged lower by 0.5% to Rs155. The company said that the company secured Rs120mn order from Huwei. The scrip touched an intra-day high of Rs163 and a low of Rs154 and recorded volumes of over 58,000 shares on BSE.
GTL gained by a percent to Rs259 after the company announced that the founders raised their stake to 39.31% in the company. The scrip touched an intra-day high of Rs263 and a low of Rs255 and recorded volumes of over 24,000 shares on BSE.
Steel Stripes Wheels, manufacturers of single steel wheel rims, surged by over 3.5% to Rs174 after the company declared its March sales rose 30.7% to 5,53,000. The company also announced its March production which rose 30.2% to 5,56,000 units. The scrip touched an intra-day high of Rs174 and a low of Rs168.
Era Infrastructure marginally gained 0.2% to Rs587 after the company announced that it secured order worth Rs40mn from Jeet Builders. The scrip touched an intra-day high of Rs610 and a low of Rs555 and recorded volumes of over 51,000 shares on BSE.
Bank of Maharashtra was up by a over 3% to Rs50. The Bank's decision to establish General Insurance Joint Venture in partnership with M/s. Shriram Financial Services Holdings P Ltd, Chennai and Sanlam Ltd of South Africa, could not be finalized as per the Bank's requirement and hence the Bank has opted out of the said Joint Venture. The scrip touched an intra-day high of Rs51 and a low of Rs49 and recorded volumes of over 33,000 shares on BSE.
IVRCL Infrastructures advanced by over 2% to Rs394 after the company announced that the Buildings & Industrial Structure (B & IS) Division bagged orders of the value of Rs4.84bn. Scope of Work:- Construction of various Buildings varying from G+4 to G+25, approximate Construction Area of 40 Lacs Sq. ft, out of total Integrated Township of approximate 1.2 Crore Sq. ft construction area in 237 acres of land located on the Bank of River Ganges at New Bata Road, Batanagar, Mahestala, Kolkata, to be completed in 42 months. The scrip touched an intra-day high of Rs420 and a low of Rs387 and recorded volumes of over 1,00,000 shares on BSE.
FIIs were net sellers of Rs1.36bn (provisional) in the cash segment yesterday while local institutions pumped in Rs2.64bn. In the F&O segment, foreign funds were net buyers of Rs17.73bn yesterday.
On Tuesday, FIIs were net sellers of Rs11.88bn in the cash segment. Mutual Funds were also net sellers of Rs2.85bn on the same day.
Corporate News
HUL announces a performance-linked bonus along with a steep hike in salaries to its top management.
Tata Motors planning to raise 100bn yen on Tokyo exchange.
NTPC plans to enter into captive power generation and retail distribution in the upcoming SEZs.
TCS to invest Rs9bn in Pune to create a capacity for 20,000 seats over next three years.
A consortium of M&M and ICICI Ventures signed definitive agreement to buy 100% in Italian gear maker Metalcastello.
GMR Infra plans to raise US$3bn over the next 4-5 years to fund expansion of power projects.
NTPC has signed a JV with a state entity in Uttar Pradesh to set-up a 1,320 MW power plant.
American Tower Company (ATC) is close to investing in tower entity of Tata Tele.
Suzlon Energy’s US arm bags a contract to supply 200MW from a local company.
IVRCL’s buildings and industrial structure division wins orders worth Rs4.84bn.
TVS Motors plan to sell 60,000 electric scooters in 2008-09.
Welspun Gujarat is setting-up a new 0.3mtpa facility in the US.
Voltas wins a contract from a UAE-based company for construction of a cooling plant at the Dubai International Financial Centre.
Suzlon’s January-March results may see a hit due to company’s forex exposure.
Telekom Malaysia might partner with strategic investors to increase their combined stake in Spice Communications to 74%.
Gateway Distrparks’ arm to raise Rs3.3bn from private equity investors.
Provogue lines up JV for foray into infrastructure.
Maytas Consortium to build two airports for Rs2bn in Karnataka.
Royal Orchid Hotels has acquired a 50% stake in Cosmos Premises Pvt Ltd which owns Galaxy Resorts in Goa.
Steel Strips Wheels Ltd gets an order of Rs1.1bn for supply of about 1mn steel wheel rims over five years from Renault.
Zensar Technologies is targeting over 10% of revenues from West Asia and South Africa.
Koutons Retail promoters are looking at diluting 5-7% stake in 2009-10 to raise funds for more than doubling the number of exclusive outlets by 2011.
Economy News
Government has asked cold rolled (CR) steel makers to voluntarily reduce prices
Government is considering a ban on cement exports.
Retail rentals see little or no growth in Delhi NCR, Bangalore, Hyderabad and Kolkata while continue to soar in Mumbai in the past six months.
Railways increases freight rates on iron ore transportation by 5-6%.
Industrial output growth to dip further to 3.4% in April-July 2008 says Assocham.