Overall view about markets today : Markets will be opening in positive zone with a marginal gap of 10-15 points on positive side of Sensex . Markets will be witnessing huge volatility , due to erratic behaviour of CRUDE , POLITIANS HAVE BECOME VERY RUDE , and both are making
investors and traders PERFECTLY NUDE. . Markets will be having very uncertainy at close
Buy ongc, IT stock ,Cement stock
Today, Nifty has support at 3,787 and resistance at 3,965 and BSE Sensex has support at 12,513 and resistance at 13,212.
The market may well rebound after Tuesday's pounding. At such times, beaten down stocks will suddenly have the wow factor, especially when the indices are in the green. Resist the temptation. We reiterate our warning that the pullback may not last long. Remain extremely cautious in this market whether one is trading or investing
Action in cement buy them
Cement prices likely to increase by 3/bag in Mumbai, Gujarat and southern markets from next week
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Wednesday, July 2, 2008
Tuesday, July 1, 2008
Drowning Street…avoid getting wet
Sejal Architectural Glass having issued shares at Rs 115 is likely to list around Rs 120 with not much investors’ interest. In view of good subscription momentum play is not likely in the near term.
Sell rcom in train lots n book profit on time
Market Grape Wine :
In House :
Nifty at a support of 3910 and 3970 with resistance at 4100 and 4160 levels.
Cash: Sell BAJAJ HIND below 165 TGT154 with S/L 169.
Cash Buy INFOSYS above 1750 TGT 1790 with S/L 1730
Future: sell HDFC below 1982 TGT 1914 with S/L 2010
The Indian stock market has been one of the worst performers in the first half (down 34%). We have China for company in this dubious club. In fact, it is even worse off with a negative return of 48%. The Dow in the US has lost 14.4% so far this year, and is on the brink of entering the official territory for bear market.
For the day we could see the key indices opening on a cautious to slightly higher note. There is no clear trend emerging from the global markets at this point in time. Some markets are slightly down while some others are modestly up. Oil has cooled off to $140 per barrel after hitting $143.67 in electronic trading yesterday. However, this is still quite a bit high and only a drop to $100-110 levels will bring cheers to the stock markets.
Today's Pick -Essar Oil
We recommend a sell in Essar Oil from a short-term perspective. From the charts of the Essar Oil, we see that it has been on a long-term down trend from its 52-week high of Rs 360 recorded in early January 2008. On June 30, the stock conclusively broke through the key support level at Rs 200 where the 200-day moving average is positioned and tumbled 11 per cent accompanied by above average volume.
The daily relative strength index is featuring in the bearish zone and the weekly RSI is on the brink of entering this zone. The daily moving average convergence and divergence is also declining and is featuring in the negative territory, reinforcing our bearish stance.
The long-term down trendline of the stock is intact. Considering the above bearish facts we are negative on the stock in the short-term and expect its decline to prolong until it hits our price target of Rs 158 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 185.
Sell rcom in train lots n book profit on time
Market Grape Wine :
In House :
Nifty at a support of 3910 and 3970 with resistance at 4100 and 4160 levels.
Cash: Sell BAJAJ HIND below 165 TGT154 with S/L 169.
Cash Buy INFOSYS above 1750 TGT 1790 with S/L 1730
Future: sell HDFC below 1982 TGT 1914 with S/L 2010
The Indian stock market has been one of the worst performers in the first half (down 34%). We have China for company in this dubious club. In fact, it is even worse off with a negative return of 48%. The Dow in the US has lost 14.4% so far this year, and is on the brink of entering the official territory for bear market.
For the day we could see the key indices opening on a cautious to slightly higher note. There is no clear trend emerging from the global markets at this point in time. Some markets are slightly down while some others are modestly up. Oil has cooled off to $140 per barrel after hitting $143.67 in electronic trading yesterday. However, this is still quite a bit high and only a drop to $100-110 levels will bring cheers to the stock markets.
Today's Pick -Essar Oil
We recommend a sell in Essar Oil from a short-term perspective. From the charts of the Essar Oil, we see that it has been on a long-term down trend from its 52-week high of Rs 360 recorded in early January 2008. On June 30, the stock conclusively broke through the key support level at Rs 200 where the 200-day moving average is positioned and tumbled 11 per cent accompanied by above average volume.
The daily relative strength index is featuring in the bearish zone and the weekly RSI is on the brink of entering this zone. The daily moving average convergence and divergence is also declining and is featuring in the negative territory, reinforcing our bearish stance.
The long-term down trendline of the stock is intact. Considering the above bearish facts we are negative on the stock in the short-term and expect its decline to prolong until it hits our price target of Rs 158 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 185.
Monday, June 30, 2008
A royal pull back indeed!
Indian stock market volatile, Nifty (4137) S 4050 R 4210
Bullish break out- Ifci, contain corp, cairn,idea,geometric ltd.
Today, we see another tumultuous day for the bulls, which should begin with a cautious opening. The intra-day choppiness will continue and one may see some buying at lower levels, though the rebound may prove to be short-lived.
The next big trigger will come from the first-quarter results, which will be declared over the next few days. As always, IT sector will lead the way, with Infosys announcing its results on July 11.
Among stock specific news, Blue Green Constructions and Investments could be in action as the board will met to sell majority stake to discount retailer Subhiksha
This week, the ECB (European Central Bank) will take a call on interest rates. If it decides to jack up rates to fight inflation, there will be more trouble for the dollar. On the domestic front, the political situation has once again turned precarious with the Congress determined to go ahead with the nuke deal, and the Left reiterating its threat of pulling down the Government
Results Today: Ansal Infra, Asian Hotels, BEML, Bombay Dyeing, BPL, Deccan Chronicle, Gammon India, India Cement, Indo Rama Synthetics, Ispat, MMTC, Madras Cement, Matrix Labs, Pfizer, REI Agro, Sun TV, Trent, TVS Motor and Wyeth.
ANG Auto will consider buy back of shares
HT Media surged by over 4 percent to Rs101 as the company reportedly acquired 0.65% stake in real estate major Sunil Mantri Realty for Rs200mn. HT bought equity shares of Re1 at a price of Rs125. The company plans to use the funds for new projects. The scrip touched an intra-day high of Rs102 and a low of Rs92 and recorded volumes of over 5,00,000 shares on BSE.
Sun Pharma edged lower by 0.8% to Rs1333 after reports stated that the company has launched a hostile bid for Taro Pharma. The scrip touched an intra-day high of Rs1382 and a low of Rs1305 and recorded volumes of over 92,000 shares on BSE.
Jet Airways dropped by 5.2% to Rs490 after reports stated that the company may post Rs20bn loss in two years. The scrip touched an intra-day high of Rs509 and a low of Rs488 and recorded volumes of over 14,000 shares on BSE.
Cairn India advanced by 1.4% to Rs275 after crude oil prices hits all time high of US$141.71/bbl. The scrip touched an intra-day high of Rs282 and a low of Rs267 and recorded volumes of over 23,00,000 shares on BSE.
Allcargo Global rose 2.5% to Rs825. The board of directors of the company said that it deferred the decision on sub-division (split) of nominal value of equity shares of Rs10 each. They have also recommended final dividend of 30% (Rs3 per share). The scrip touched an intra-day high of Rs825 and a low of Rs751 and recorded volumes of over 43,000 shares on BSE.
Bafna Pharmaceuticals started trading at Rs43.7 against the issue price of Rs40. The scrip finally closed at Rs38.50 translating slipping below its issue price of Rs40 per share. It hit an intra-day high of Rs47 and a low of Rs37.3 and recorded volumes of over 2,00,00,000 shares on BSE.
The company offered 64,00,000 equity shares of Rs10 each for cash at premium of Rs30 per share. The issue to the public constituted 40.05% of the post issue paid-up capital.
The Chennai-based Bafna Pharmaceuticals is engaged in the manufacturing of betalactum and non-betalactum pharmaceutical formulations in tablets, capsules and liquid forms. The company manufactures 126 formulations under various therapeutic segments such as anti-infective, cholesterol lowering agents, analgesic and antipyretic, antihelmintics, appetite stimulants, cough & cold preparations, antiulcerants anti diabetic and vitamins .
The proceeds of the issue would be utilized towards brand building exercise in domestic market. It intends to register the company, products and create brand in international markets. Bafna would also strengthen up R&D facility at its grantlayon plant besides getting MHRA certification. It is also proposing to retire high-cost debts through the IPO proceeds.
Anant Raj Industries advanced by 5% to Rs142 after the company announced that that M/s. Acacia Real Estate Ltd, a Bahrain based development fund has entered into a joint venture agreement with the company to acquire minority stake in one of its wholly owned subsidiary, Anant Raj Projects Pvt Ltd for Rs2.16bn.
The scrip touched an intra-day high of Rs153 and a low of Rs126 and recorded volumes of over 59,000 shares on BSE.
Renuka Sugars has slipped by 1.5% to Rs107. The company announced that it commenced production at its Haldia Sugar Refinery, having a refining capacity of 2000 metric tons sugar per day and Power cogeneration plant of 15 MW.
The scrip has touched an intra-day high of Rs107 and a low of Rs105 and has recorded volumes of over 3,00,000 shares on BSE.
Unitech plans to dilute 26% stake in its telecom arm to a foreign company. (TOI)
Reliance Industries may tie up with BP or Shell for bidding for new oil blocks under NELP VII round.(ET)
Daiichi Sankyo may sell debt to raise half the cost of its US$4.6bn acquisition of Ranbaxy Laboratories.(BS)
India’s crude oil production rose by 3.2% in May on back of better performance by ONGC.(FE)
Jupiter Biosciences acquires a facility of Merck in Switzerland and signs a five year agreement for its peptide products with the latter’s biosciences company.(BL)
Apollo Tyres launches capacity expansion at its Africa plants.(BL)
ONGC to start commercial production from Jaria-Parbatpur block by early 2009.(BL)
SAIL plans to run its own fleet of vessels in partnership with public as well as private players to ship imported cooking coal.(ET)
Unitech plans to invest Rs40bn in hospitality business in the next five years.(DNA)
China-based Dongfang Electric Corp. may tie up with BHEL or L&T for its proposed manufacturing unit in India.(ET)
Kingfisher Airlines receives an in-principle approval from ICICI Bank for a Rs10bn loan facility.(ET)
ONGC Videsh decides to surrender its Qatar block as reserves are low and not commercially viable.(BL)
M&M arm FirstChoice Wheels plans to invest Rs2bn in the next five years for its expansion.(TOI)
GMR Group plans to create holding firms for its three primary businesses and list them overseas.(Mint)
Food and grocery retail chain Subhiksha to invest Rs12bn by 2010.(BS)
Holcim divides the operations of its two companies, ACC and Ambuja Cements India, into three regions.(ET)
Essar group plans port terminal for LNG and a container cargo facility and depots.(Mint)
Cairn India and ONGC have nearly finalized the plan for joint development of Ambe and North Tapti offshore marginal gas fields on the Gujarat coast.(BL)
AT&T is likely to buy 74% stake held by Maxis Communication in Aircel.(ET)
Subhiksha Trading Services, which runs country’s largest food & grocery discount retail chain, acquires majority stake in Chennai based Blue Green Constructions and Investments.(BL)
Future Group plans to split Big Bazaar into two entities.(ET)
Duncan Tea has tied up with Essel Group’s portal itzcash.com for online retailing of tea.(ET)
Reliance Retail is planning to open a chain of specialty stores of retail mobile phone handsets across the country.(ET)
Economic News
Higher crude oil prices could cause fuel subsidy bill to reach Rs3tn this year.(BS)
DoT scraps plan to auction 3G spectrum for CDMA players.(BL)
Railways to increase freight rates to offset diesel price hike.(BS)
PSU oil companies to raise ATF prices by Rs3,000/KL from July 1, 2008.(ET)
Hotel tariffs in five and four star segments may be soon revise downwards as economy heads for a slowdown.(BS)
TRAI to study long term spectrum availability to see whether there is space for new players.(FE)
It would not be possible for India to maintain 9% growth in current fiscal due to rising inflation, says Planning Commission Deputy Chairman.(BS)
Railways to increase discounts on empty-flow direction freight from 30 to 50%.(ET)
Accounting regulator ICAI says firms would have to provide for FCCB redemption premium in their books over life of instrument.(FE)
Government may temporarily ban export of cotton.(ET)
Tyre makers mull 7% price increase due to rising input costs.(BS)
Implementation of commodities transaction tax is likely to be delayed to end of year or next year due to rising inflation.(BS)
Ministry of renewable energy announces a generation-based incentive of 50 paise per unit of electricity for investors who do not have access to the benefits of accelerated depreciation
Bullish break out- Ifci, contain corp, cairn,idea,geometric ltd.
Today, we see another tumultuous day for the bulls, which should begin with a cautious opening. The intra-day choppiness will continue and one may see some buying at lower levels, though the rebound may prove to be short-lived.
The next big trigger will come from the first-quarter results, which will be declared over the next few days. As always, IT sector will lead the way, with Infosys announcing its results on July 11.
Among stock specific news, Blue Green Constructions and Investments could be in action as the board will met to sell majority stake to discount retailer Subhiksha
This week, the ECB (European Central Bank) will take a call on interest rates. If it decides to jack up rates to fight inflation, there will be more trouble for the dollar. On the domestic front, the political situation has once again turned precarious with the Congress determined to go ahead with the nuke deal, and the Left reiterating its threat of pulling down the Government
Results Today: Ansal Infra, Asian Hotels, BEML, Bombay Dyeing, BPL, Deccan Chronicle, Gammon India, India Cement, Indo Rama Synthetics, Ispat, MMTC, Madras Cement, Matrix Labs, Pfizer, REI Agro, Sun TV, Trent, TVS Motor and Wyeth.
ANG Auto will consider buy back of shares
HT Media surged by over 4 percent to Rs101 as the company reportedly acquired 0.65% stake in real estate major Sunil Mantri Realty for Rs200mn. HT bought equity shares of Re1 at a price of Rs125. The company plans to use the funds for new projects. The scrip touched an intra-day high of Rs102 and a low of Rs92 and recorded volumes of over 5,00,000 shares on BSE.
Sun Pharma edged lower by 0.8% to Rs1333 after reports stated that the company has launched a hostile bid for Taro Pharma. The scrip touched an intra-day high of Rs1382 and a low of Rs1305 and recorded volumes of over 92,000 shares on BSE.
Jet Airways dropped by 5.2% to Rs490 after reports stated that the company may post Rs20bn loss in two years. The scrip touched an intra-day high of Rs509 and a low of Rs488 and recorded volumes of over 14,000 shares on BSE.
Cairn India advanced by 1.4% to Rs275 after crude oil prices hits all time high of US$141.71/bbl. The scrip touched an intra-day high of Rs282 and a low of Rs267 and recorded volumes of over 23,00,000 shares on BSE.
Allcargo Global rose 2.5% to Rs825. The board of directors of the company said that it deferred the decision on sub-division (split) of nominal value of equity shares of Rs10 each. They have also recommended final dividend of 30% (Rs3 per share). The scrip touched an intra-day high of Rs825 and a low of Rs751 and recorded volumes of over 43,000 shares on BSE.
Bafna Pharmaceuticals started trading at Rs43.7 against the issue price of Rs40. The scrip finally closed at Rs38.50 translating slipping below its issue price of Rs40 per share. It hit an intra-day high of Rs47 and a low of Rs37.3 and recorded volumes of over 2,00,00,000 shares on BSE.
The company offered 64,00,000 equity shares of Rs10 each for cash at premium of Rs30 per share. The issue to the public constituted 40.05% of the post issue paid-up capital.
The Chennai-based Bafna Pharmaceuticals is engaged in the manufacturing of betalactum and non-betalactum pharmaceutical formulations in tablets, capsules and liquid forms. The company manufactures 126 formulations under various therapeutic segments such as anti-infective, cholesterol lowering agents, analgesic and antipyretic, antihelmintics, appetite stimulants, cough & cold preparations, antiulcerants anti diabetic and vitamins .
The proceeds of the issue would be utilized towards brand building exercise in domestic market. It intends to register the company, products and create brand in international markets. Bafna would also strengthen up R&D facility at its grantlayon plant besides getting MHRA certification. It is also proposing to retire high-cost debts through the IPO proceeds.
Anant Raj Industries advanced by 5% to Rs142 after the company announced that that M/s. Acacia Real Estate Ltd, a Bahrain based development fund has entered into a joint venture agreement with the company to acquire minority stake in one of its wholly owned subsidiary, Anant Raj Projects Pvt Ltd for Rs2.16bn.
The scrip touched an intra-day high of Rs153 and a low of Rs126 and recorded volumes of over 59,000 shares on BSE.
Renuka Sugars has slipped by 1.5% to Rs107. The company announced that it commenced production at its Haldia Sugar Refinery, having a refining capacity of 2000 metric tons sugar per day and Power cogeneration plant of 15 MW.
The scrip has touched an intra-day high of Rs107 and a low of Rs105 and has recorded volumes of over 3,00,000 shares on BSE.
Unitech plans to dilute 26% stake in its telecom arm to a foreign company. (TOI)
Reliance Industries may tie up with BP or Shell for bidding for new oil blocks under NELP VII round.(ET)
Daiichi Sankyo may sell debt to raise half the cost of its US$4.6bn acquisition of Ranbaxy Laboratories.(BS)
India’s crude oil production rose by 3.2% in May on back of better performance by ONGC.(FE)
Jupiter Biosciences acquires a facility of Merck in Switzerland and signs a five year agreement for its peptide products with the latter’s biosciences company.(BL)
Apollo Tyres launches capacity expansion at its Africa plants.(BL)
ONGC to start commercial production from Jaria-Parbatpur block by early 2009.(BL)
SAIL plans to run its own fleet of vessels in partnership with public as well as private players to ship imported cooking coal.(ET)
Unitech plans to invest Rs40bn in hospitality business in the next five years.(DNA)
China-based Dongfang Electric Corp. may tie up with BHEL or L&T for its proposed manufacturing unit in India.(ET)
Kingfisher Airlines receives an in-principle approval from ICICI Bank for a Rs10bn loan facility.(ET)
ONGC Videsh decides to surrender its Qatar block as reserves are low and not commercially viable.(BL)
M&M arm FirstChoice Wheels plans to invest Rs2bn in the next five years for its expansion.(TOI)
GMR Group plans to create holding firms for its three primary businesses and list them overseas.(Mint)
Food and grocery retail chain Subhiksha to invest Rs12bn by 2010.(BS)
Holcim divides the operations of its two companies, ACC and Ambuja Cements India, into three regions.(ET)
Essar group plans port terminal for LNG and a container cargo facility and depots.(Mint)
Cairn India and ONGC have nearly finalized the plan for joint development of Ambe and North Tapti offshore marginal gas fields on the Gujarat coast.(BL)
AT&T is likely to buy 74% stake held by Maxis Communication in Aircel.(ET)
Subhiksha Trading Services, which runs country’s largest food & grocery discount retail chain, acquires majority stake in Chennai based Blue Green Constructions and Investments.(BL)
Future Group plans to split Big Bazaar into two entities.(ET)
Duncan Tea has tied up with Essel Group’s portal itzcash.com for online retailing of tea.(ET)
Reliance Retail is planning to open a chain of specialty stores of retail mobile phone handsets across the country.(ET)
Economic News
Higher crude oil prices could cause fuel subsidy bill to reach Rs3tn this year.(BS)
DoT scraps plan to auction 3G spectrum for CDMA players.(BL)
Railways to increase freight rates to offset diesel price hike.(BS)
PSU oil companies to raise ATF prices by Rs3,000/KL from July 1, 2008.(ET)
Hotel tariffs in five and four star segments may be soon revise downwards as economy heads for a slowdown.(BS)
TRAI to study long term spectrum availability to see whether there is space for new players.(FE)
It would not be possible for India to maintain 9% growth in current fiscal due to rising inflation, says Planning Commission Deputy Chairman.(BS)
Railways to increase discounts on empty-flow direction freight from 30 to 50%.(ET)
Accounting regulator ICAI says firms would have to provide for FCCB redemption premium in their books over life of instrument.(FE)
Government may temporarily ban export of cotton.(ET)
Tyre makers mull 7% price increase due to rising input costs.(BS)
Implementation of commodities transaction tax is likely to be delayed to end of year or next year due to rising inflation.(BS)
Ministry of renewable energy announces a generation-based incentive of 50 paise per unit of electricity for investors who do not have access to the benefits of accelerated depreciation
Friday, June 27, 2008
13000 or 15000 still guessing ??? Subscribe now
DOW NASDAQ down by 3%
Asian Down by more than 2%
Crude hitting New High
INFLATION is all set to come in Double Digit
SGX NIFTY trading at 4136 (-114)
But hope in afternoon trade market will recover on the back of Short Covering and may be by FRESH BUYING
To know more visit
http://www.freewebs.com/jgs-investments/marketwhisper.htm
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Asian Down by more than 2%
Crude hitting New High
INFLATION is all set to come in Double Digit
SGX NIFTY trading at 4136 (-114)
But hope in afternoon trade market will recover on the back of Short Covering and may be by FRESH BUYING
To know more visit
http://www.freewebs.com/jgs-investments/marketwhisper.htm
Good News
Paid trial for one week is Rs.1750/-
Add Rs.175/- towards Bank Charges if Depositing Cash
Thursday, June 26, 2008
Fears rejected for time being
Subscribe now ...............
Nifty (4253) Sup 4150 Res 4315
Rumours going around in the market that Radico Khaitan the maker of 8PM whisky might be an acquistion target. The stock rose more than a 13 percent on 3 times its usual volumes.GHCL, Gujarat Sidhee and Sasken are some of the stocks that look technically strong and would be worth keeping an eye on.
The market seemed to have rejected the exaggerated fears of the RBI move as benchmark indices advanced after a four-day drubbing. But don't accept the gains as a reversal in sentiment as yet. Most of the gains could be attributed to the short-squeeze ahead of the F&O expiry today. Things are not looking too bad for the bulls this morning either. US ended higher (though off the day's highs) after the Federal Reserve left its key rates steady and expressed concern on rising inflation
We expect our markets to follow the global trend and inch further up, driven by further short covering. Having said that, considerable risks still remain in the system due to multi-year high inflation and rising interest rates. The political situation still remains uncertain. So, don't go overboard. May sound too basic but remember to buy at dips and not at bouncy intra-day tops.
FIIs were net sellers of Rs3.64bn (provisional) in the cash segment on Wednesday while the local institutions poured in Rs5.3bn. In the F&O segment, foreign funds were net buyers of Rs1.11bn
Results Today: Allcargo Global, Apar Industries, Cranes Software, Gateway Distriparks, JK Paper, Nitin Fire, Panacea Biotec, Radha Madhav, Religare, Surana Tele, Tata Steel, Tulip Telecom and West Coast Paper
Spice Communications rallied by over 33% to Rs72 after the Board of Directors of the company announces that they have entered into of a share purchase agreement between MCorpGlobal Communications Pvt Ltd and Idea Cellular for the sale of 281,489,350 equity shares of Rs10/- each of the company by MCorpGlobal Communications Pvt to Idea Cellular representing 40.8% of the total paid up equity capital of the company at a price of Rs77.30 per equity share.
The company approved the merger of company with Idea Cellular based on an exchange ratio of 49 equity shares of Idea Cellular for every 100 equity shares of the company held by the shareholders.
The scrip touched an intra-day high of Rs73 and a low of Rs52 and recorded volumes of over 4,00,00,000 shares on NSE.
Shares of Idea Cellular also gained by 3% to Rs102 after the company announced that it would sell 464.7mn shares at Rs156.96 to Telekom Malaysia. The scrip touched an intra-day high of Rs105 and a low of Rs97 and recorded volumes of over 48,00,000 shares on NSE
Cairn India gained by 3% to Rs268 after the company’s unit plans to spend US$2bn to develop oil fields and build a pipeline over 18 months. A project to develop fields in the western state of Rajasthan will cost $850 million. The scrip touched an intra-day high of Rs269 and a low of Rs255 and recorded volumes of over 14,00,000 shares on NSE.
Ranbaxy Labs gained by 4% to Rs545 after the company announced that it received tentative approval from the U.S. Food and Drug Administration to manufacture and market Valganciclovir Hydrochloride Tablets, 450 mg. Total annual market sales for Valganciclovir HCl Tablets were US$239mn (IMS MAT: March 2008). Ranbaxy believes that it has First-to-File status on Valganciclovir tablets, thereby providing a potential of 180-days of marketing exclusivity, offering a significant opportunity in the future.
The scrip touched an intra-day high of Rs548 and a low of Rs518 and recorded volumes of over 8,00,000 shares on NSE.
GMR Infrastructure gained by 3% to Rs99 after the company announced that it would develop 3,200MW of power in India. The company also said that it would spend US$1bn in India over 4-5 years. The scrip touched an intra-day high of Rs102 and a low of Rs94 and recorded volumes of over 29,00,000 shares on NSE.
Reliance Infrastructure surged by 4 percent to Rs948 after reports stated that it secured Rs120bn engineering, procurement and construction (EPC) contract for the 3,960 mw Sasan ultra mega power project (UMPP) of group company Reliance Power.
Reliance Infrastructure will complete the first plant of the 6X660 mw project within 42 months and the remaining five will be commissioned with an interval of three months, stated reports. The scrip touched an intra-day high of Rs959 and a low of Rs876 and recorded volumes of over 8,00,000 shares on NSE.
Nagarjuna Construction fell by 4 percent to Rs146. The company announced that it secured three new orders aggregating Rs3.33bn. The scrip touched an intra-day high of Rs156 and a low of Rs143 and recorded volumes of over 4,00,000 shares on NSE.
News
The Government asks Reliance to supply KG gas first to urea plants, LPG plants and existing power projects. (BL)
Ranbaxy gets tentative USFDA nod for AIDS drug. (BL)
SAIL has affected an increase of 5-8% in all categories of steel from the first week of June for long-term contracts and is contemplating another hike in July last week or beginning August. (FE)
GMR Infrastructure Ltd has acquired 50% stake in Intergen, a power company based at Burlington in the US, for US$1.1bn. (BL)
Reliance Exploration and Production, a subsidiary of RIL has signed a cooperation agreement with the UAE-based petroleum company Crescent Petroleum. (ET)
Nagarjuna Construction has secured three new orders aggregating Rs3.3bn from Maharastra and Karnataka governments. (BL)
Tech Mahindra has inked an US$8mn deal with Telecom Fiji, subsidiary of Amalgamated Telecom Holdings. (ET)
NTPC to set up 4,000MW power plant in UP. (ET)
SBI to raise its lending rates by 50 basis points post RBI’s move to hike both CRR and repo rate by 50 basis points. (FE)
Reliance Infra has inked a partnership with US consultant Black & Veatch. (ET)
PSL Ltd announced that its order book stands at about Rs40bn. (ET)
Bangalore International Airport Ltd is seeking a valuation of up to US$2.5bn to raise about US$200mn in equity to fund the second phase of the airport’s development. (ET)
Birla Cotsyn (India) plans to raise about Rs1.4bn through an IPO. (ET)
IndusInd Bank raises Rs2.2bn through GDR issue. (BL)
Apollo Hospitals Enterprise Ltd intends to spin off its pharma retailing business into a separate company. (BL)
Mt Everest mineral water is fighting a legal battle with Bisleri International over the use of the word Himalaya in its mineral water branding. (ET)
Amtek Auto through its subsidiary Amtek Transportation Systems Ltd has signed a JV agreement with American Railcar Industries Inc based in St Charles, Missouri. (BL)
Wipro received marketing-related intangible assets valued at Rs4.9bn from the brands of Singapore-based FMCG Company Unza which it acquired last year. (ET)
ITC Infotech to pull out of its BPO equal joint venture with US-based Sitel Corporation. (BS)
Mauritius-based Frontline Strategy’s private equity fund bought a stake of 26% in Shriram SEPL Composites, a JV between Shriram EPC and Strategic Engineering. (BS)
GoAir plans to offload 26% stake. (ET)
Reva Electric Car Company is looking at licensing its vehicle technology to other carmakers. (ET)
Hindustan Copper Ltd has applied to the government of Madhya Pradesh for reconnaissance permit for an area of 1,600 sq km in the district of Balaghat. (FE)
HTMT Global to buy BPO co in Europe. (BL)
Economic News
The Centre plans to increase the credit exposure limit of 15% on bank lending to NBFCs for infrastructure projects, especially in the power sector. (FE)
The government’s direct tax collection increased by 43.5% to Rs494bn until June 21, on the back of higher advance tax payments by Companies. (FE)
The Indian Railways is hiking freight charges for ores and minerals, petro-products, coke and coal, fertilizers, foodgrains and a host of other commodities by 5-7%. (BL)
The Federation of All India Petroleum Traders has warned that petrol pumps across the country may go dry in the next 15 days if the government does not resolve the issues concerning sale of branded fuel. (ET)
The government is yet to decide the floor price at which it will purchase key kharif crops. (ET)
Airport operators are unlikely to cut landing and parking fees for airlines. (ET)
Auto parts suppliers to cut supplies to OEMs in the next quarter.
Nifty (4253) Sup 4150 Res 4315
Rumours going around in the market that Radico Khaitan the maker of 8PM whisky might be an acquistion target. The stock rose more than a 13 percent on 3 times its usual volumes.GHCL, Gujarat Sidhee and Sasken are some of the stocks that look technically strong and would be worth keeping an eye on.
The market seemed to have rejected the exaggerated fears of the RBI move as benchmark indices advanced after a four-day drubbing. But don't accept the gains as a reversal in sentiment as yet. Most of the gains could be attributed to the short-squeeze ahead of the F&O expiry today. Things are not looking too bad for the bulls this morning either. US ended higher (though off the day's highs) after the Federal Reserve left its key rates steady and expressed concern on rising inflation
We expect our markets to follow the global trend and inch further up, driven by further short covering. Having said that, considerable risks still remain in the system due to multi-year high inflation and rising interest rates. The political situation still remains uncertain. So, don't go overboard. May sound too basic but remember to buy at dips and not at bouncy intra-day tops.
FIIs were net sellers of Rs3.64bn (provisional) in the cash segment on Wednesday while the local institutions poured in Rs5.3bn. In the F&O segment, foreign funds were net buyers of Rs1.11bn
Results Today: Allcargo Global, Apar Industries, Cranes Software, Gateway Distriparks, JK Paper, Nitin Fire, Panacea Biotec, Radha Madhav, Religare, Surana Tele, Tata Steel, Tulip Telecom and West Coast Paper
Spice Communications rallied by over 33% to Rs72 after the Board of Directors of the company announces that they have entered into of a share purchase agreement between MCorpGlobal Communications Pvt Ltd and Idea Cellular for the sale of 281,489,350 equity shares of Rs10/- each of the company by MCorpGlobal Communications Pvt to Idea Cellular representing 40.8% of the total paid up equity capital of the company at a price of Rs77.30 per equity share.
The company approved the merger of company with Idea Cellular based on an exchange ratio of 49 equity shares of Idea Cellular for every 100 equity shares of the company held by the shareholders.
The scrip touched an intra-day high of Rs73 and a low of Rs52 and recorded volumes of over 4,00,00,000 shares on NSE.
Shares of Idea Cellular also gained by 3% to Rs102 after the company announced that it would sell 464.7mn shares at Rs156.96 to Telekom Malaysia. The scrip touched an intra-day high of Rs105 and a low of Rs97 and recorded volumes of over 48,00,000 shares on NSE
Cairn India gained by 3% to Rs268 after the company’s unit plans to spend US$2bn to develop oil fields and build a pipeline over 18 months. A project to develop fields in the western state of Rajasthan will cost $850 million. The scrip touched an intra-day high of Rs269 and a low of Rs255 and recorded volumes of over 14,00,000 shares on NSE.
Ranbaxy Labs gained by 4% to Rs545 after the company announced that it received tentative approval from the U.S. Food and Drug Administration to manufacture and market Valganciclovir Hydrochloride Tablets, 450 mg. Total annual market sales for Valganciclovir HCl Tablets were US$239mn (IMS MAT: March 2008). Ranbaxy believes that it has First-to-File status on Valganciclovir tablets, thereby providing a potential of 180-days of marketing exclusivity, offering a significant opportunity in the future.
The scrip touched an intra-day high of Rs548 and a low of Rs518 and recorded volumes of over 8,00,000 shares on NSE.
GMR Infrastructure gained by 3% to Rs99 after the company announced that it would develop 3,200MW of power in India. The company also said that it would spend US$1bn in India over 4-5 years. The scrip touched an intra-day high of Rs102 and a low of Rs94 and recorded volumes of over 29,00,000 shares on NSE.
Reliance Infrastructure surged by 4 percent to Rs948 after reports stated that it secured Rs120bn engineering, procurement and construction (EPC) contract for the 3,960 mw Sasan ultra mega power project (UMPP) of group company Reliance Power.
Reliance Infrastructure will complete the first plant of the 6X660 mw project within 42 months and the remaining five will be commissioned with an interval of three months, stated reports. The scrip touched an intra-day high of Rs959 and a low of Rs876 and recorded volumes of over 8,00,000 shares on NSE.
Nagarjuna Construction fell by 4 percent to Rs146. The company announced that it secured three new orders aggregating Rs3.33bn. The scrip touched an intra-day high of Rs156 and a low of Rs143 and recorded volumes of over 4,00,000 shares on NSE.
News
The Government asks Reliance to supply KG gas first to urea plants, LPG plants and existing power projects. (BL)
Ranbaxy gets tentative USFDA nod for AIDS drug. (BL)
SAIL has affected an increase of 5-8% in all categories of steel from the first week of June for long-term contracts and is contemplating another hike in July last week or beginning August. (FE)
GMR Infrastructure Ltd has acquired 50% stake in Intergen, a power company based at Burlington in the US, for US$1.1bn. (BL)
Reliance Exploration and Production, a subsidiary of RIL has signed a cooperation agreement with the UAE-based petroleum company Crescent Petroleum. (ET)
Nagarjuna Construction has secured three new orders aggregating Rs3.3bn from Maharastra and Karnataka governments. (BL)
Tech Mahindra has inked an US$8mn deal with Telecom Fiji, subsidiary of Amalgamated Telecom Holdings. (ET)
NTPC to set up 4,000MW power plant in UP. (ET)
SBI to raise its lending rates by 50 basis points post RBI’s move to hike both CRR and repo rate by 50 basis points. (FE)
Reliance Infra has inked a partnership with US consultant Black & Veatch. (ET)
PSL Ltd announced that its order book stands at about Rs40bn. (ET)
Bangalore International Airport Ltd is seeking a valuation of up to US$2.5bn to raise about US$200mn in equity to fund the second phase of the airport’s development. (ET)
Birla Cotsyn (India) plans to raise about Rs1.4bn through an IPO. (ET)
IndusInd Bank raises Rs2.2bn through GDR issue. (BL)
Apollo Hospitals Enterprise Ltd intends to spin off its pharma retailing business into a separate company. (BL)
Mt Everest mineral water is fighting a legal battle with Bisleri International over the use of the word Himalaya in its mineral water branding. (ET)
Amtek Auto through its subsidiary Amtek Transportation Systems Ltd has signed a JV agreement with American Railcar Industries Inc based in St Charles, Missouri. (BL)
Wipro received marketing-related intangible assets valued at Rs4.9bn from the brands of Singapore-based FMCG Company Unza which it acquired last year. (ET)
ITC Infotech to pull out of its BPO equal joint venture with US-based Sitel Corporation. (BS)
Mauritius-based Frontline Strategy’s private equity fund bought a stake of 26% in Shriram SEPL Composites, a JV between Shriram EPC and Strategic Engineering. (BS)
GoAir plans to offload 26% stake. (ET)
Reva Electric Car Company is looking at licensing its vehicle technology to other carmakers. (ET)
Hindustan Copper Ltd has applied to the government of Madhya Pradesh for reconnaissance permit for an area of 1,600 sq km in the district of Balaghat. (FE)
HTMT Global to buy BPO co in Europe. (BL)
Economic News
The Centre plans to increase the credit exposure limit of 15% on bank lending to NBFCs for infrastructure projects, especially in the power sector. (FE)
The government’s direct tax collection increased by 43.5% to Rs494bn until June 21, on the back of higher advance tax payments by Companies. (FE)
The Indian Railways is hiking freight charges for ores and minerals, petro-products, coke and coal, fertilizers, foodgrains and a host of other commodities by 5-7%. (BL)
The Federation of All India Petroleum Traders has warned that petrol pumps across the country may go dry in the next 15 days if the government does not resolve the issues concerning sale of branded fuel. (ET)
The government is yet to decide the floor price at which it will purchase key kharif crops. (ET)
Airport operators are unlikely to cut landing and parking fees for airlines. (ET)
Auto parts suppliers to cut supplies to OEMs in the next quarter.
Wednesday, June 25, 2008
Eye ranbaxy at lower levels for buying
Today, Nifty has support at 4,069 and 4005 and resistance at 4,262 and BSE Sensex has support at 13,635 and resistance at 14,352.
Sell Jet Airways (518) SL 523 Target 508, 504
Sell RCom (474) SL 481
Target 464, 460
Sell Yes Bank (136) SL 140
Target 126, 123
Sell DLF (440) SL 447
Target 427, 424
Sell Titan (1019) SL 1034
Target 989, 980
The Indian Market is expected to have negative opening on the back of weak global cues, political uncertainty and rates hike by RBI. Tuesday, the Indian market closed in red for the fifth straight trading day backed by selling across the ground. The BSE Sensex fall below the 14,000 mark for the first time since late August 2007
Investors will have eye on the crucial meeting of the members of UPA with left scheduled today to decide on the fate of proposed deal between the Congress party and the U.S. President. Left parties had threatened to withdraw support if the government went ahead with the deal.
RBI on Tuesday raised its key lending rate and the CRR by 50 basis points each to tame inflation that hit a 13-year high early in June. As a second increase this month in its repo rate, the RBI raised the key lending rate to 8.5% from 8.0% with immediate effect. RBI will raise the cash reserve ratio to 8.75% from 8.25% in two stages, to 8.5% from July 5 and to 8.75% from July 19. These hikes will have adverse implications for the manufacturing sector, which have impact of high interest rates.
Today's Pick - Chambal Fertilisers
We recommend a sell in Chambal Fertilisers & Chemicals from a short-term perspective. From the charts to the stock we note that it had been on a medium-term uptrend from its March 2008 low of Rs 41, till it encountered resistance at Rs 94 in mid June.
The reversal from Rs 94 level has been supported by negative divergence in the daily moving-average convergence and divergence (MACD).
Recently, the stock penetrated the 21-day moving average and the medium-term up trendline, signalling bearishness. The daily MACD has displayed negative divergence and is indicating a sell.
The other daily momentum indicators are declining in the neutral region towards the bearish zone. Our short-term forecast for the stock is negative. We anticipate the stock’s down move to continue until it hits our price target of Rs 66 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining stop-loss at Rs 79
For the time being there is no fear of the unknown. The RBI has done what he can and we haven’t seen the last of hikes as yet. Just the other day the RBI governor Dr. Reddy had hinted at a "calibrated" approach to control inflation.In what seems to be a desperate political move to reign in inflation, the RBI has hiked both the repo rate and the CRR by half a percentage points each. We hear that a section of the market was perhaps aware of something like this in the offing. That explains the sharp fall yesterday in the last half an hour. The bloodbath may continue, at least at the start today.
On the political front, expect lots of voices from New Delhi as the UPA-Left panel on the Indo-US nuke deal meets today. Both sides may try and hammer out some compromise formula, as nobody wants an early election. The market may benefit if the outcome of the meet is definite. Any further uncertainty on this front will hit market sentiment. One will have to see which way the dice rolls. As far as global markets are concerned, there hasn't been any major fall, though the undertone remains precarious amid fresh worries over the financial sector and near-record crude oil prices.
Coming back to our market, banking, realty and auto stocks will bear the brunt of the selling pressure. Others like capital goods, construction and consumer-centric sectors may also decline. This doesn't mean stocks in the rest of the sectors will be any better off. Overall, we expect a gap-down opening. However, things may stabilise a wee bit as FIIs weren't big sellers yesterday and globally things are not that bad.
Much of the action today will be seen in the F&O segment, where most indicators are pointing to further weakness. For the Nifty, 4200 was seen as a big support. But, that has been broken. Most traders are net short. With F&O expiry tomorrow, Fed announcement (nothing much is expected) later today, and the UPA-Left meet, the bulls have their task cut out. Expect high volatility as has been the case in the last two days. In these turbulent and uncertain times, like we mentioned yesterday pick up the better counters available at rates you once asked for!.
FIIs were net buyers of Rs900.6mn (provisional) in the cash segment on Tuesday while the local institutions poured in Rs4.76bn. In the F&O segment, foreign funds were net sellers of Rs10.86bn
Volatility to prevail
A highly volatile session ended in negative terrain for fifth straight day on back of weak global cues coupled with al round selling in scrips across the sectors. Markets closed at days low and Nifty closed below the 4,000 mark for first time since Aug 24 2007.
The fall could be attributed to heavy selling in index heavyweights like Infosys, L&T and Tata Steel. However, bucking the negative trend were, Reliance Industries, HDFC and BHEL.
All the key Sectoral indices also ended in red, the BSE Metal index was the biggest loser, (down 3.5%), other like BSE PSU index (down 2.8%), BSE FMCG index (down 2.5%) and BSE IT index (down 2.1%).
Among the 50-Nifty, 41 stocks ended in negative terrain and only 9 stocks ended in green. Finally, the BSE benchmark Sensex lost 186 points to close at 14,106 and the Nifty index lost 75 points to close at 4,191.
TCS ended lower by 1.6% at Rs843. The company won a transformational engagement from the Uganda Revenue Authority (URA) to design and implement integrated tax administration system. The new system will manage all domestic domestic taxes and duties for the URA including income tax, value-added tax, witholding tax and other excise duties.
It will help the URA increase the level of tax compliance in the country, broaden the tax base and provide effecient service to Uganda's tax payers. The scrip touched an intra-day high of Rs864 and a low of Rs823 and recorded volumes of over 3,00,000 shares on BSE.
S.Kumars Nationwide gained by 0.5% to Rs106 after the company said that GIC SI would invest Rs9bn in Reid & Taylor through a fresh issue of shares and warrants. Post-conversion, GIC SI would own 25.4% of Reid & Taylor, valuing it at Rs35.40bn. The company will own 74.6% of Reid & Taylor (India) Ltd post the investment from GIC SI.
The scrip touched an intra-day high of Rs108 and a low of Rs105 and recorded volumes of over 1,00,000 shares on BSE.
Torrent Pharma rallied by over 12% to Rs174 after the company announced that it denied reports that the company’s founders would sell stake to Sun Pharma. The scrip touched an intra-day high of Rs182 and a low of Rs158 and recorded volumes of over 7,00,000 shares on BSE.
Orchid Chemicals declined by 4.7% to Rs225. The company announced that it received approval from the Canadian TPD for ANDS (Abbreviated New Drug Submission) for Piperacillin and Tazobactam for Injection.
The scrip touched an intra-day high of Rs243 and a low of Rs224 and recorded volumes of over 9,00,000 shares on BSE.
NIIT Ltd gained by 2.5% to Rs104 after the company announced that the company has entered into a strategic alliance with Infospectrum to offer proven Educational Resource Planning Solutions". The scrip touched an intra-day high of Rs105 and a low of Rs101 and recorded volumes of over 90,000 shares on BSE.
Binani Industries was down 1.2% to Rs106. The Board of Directors of the Company at its meeting held on June 23, 2008, approved the enhancement of guarantee limits from Rs16bn to Rs40bn. The scrip touched an intra-day high of Rs110 and a low of Rs106 and recorded volumes of over 3,000 shares on BSE.
Sagar Cements gained by a over 3 percent to Rs388 after the company announced that the Board of Directors at its meeting held on June 23, 2008, has decided to implement a green field cement plant of 5.5mn ton capacity in Gulbarga District in Karnataka through a special purpose vehicle to be jointly promoted with M/s. Vicat S.A., France.
To mobilize a sum of Rs700mn through issue of 10,00,000 equity shares of Rs10/- each at a premium of Rs690/- per share on a preferential basis to M/s. Vicat S.A., France, its affiliates and subsidiaries. The scrip touched an intra-day high of Rs394 and a low of Rs375 and recordede volumes of over 1,00,000 shares on BSE.
Jain Irrigation ended 2% lower to close at Rs469. The company announced that it secured contract worth Rs227.7mn. The scrip touched an intra-day high of Rs480 and a low of Rs461 and recorded volumes of over 16,00,000 shares on BSE.
Corporate News
Suzlon Energy is partnering Bahrain-based PE firm Arcapita to bid for Chinese alternative energy Company, Honiton Energy Holdings estimated at US$400mn (ET)
GMR Group is likely to buy 50% stake in US-based power generation firm InterGen in a deal valued at US$1.2bn (ET)
GIC Special Investments to acquire 25.4% stake in S Kumars’ Reid & Taylor brand for Rs9bn (ET)
HDIL buys 51% stake in Broadcast Initiatives, a Sri Adhikari Bros Group controlled media firm for an undisclosed amount (ET)
Reliance Infra bags Rs120bn EPC order from R Power to develop Shashun UMPP (BS)
Tata Group has increased stake in its South African Telecom Venture Neotel by 30% to 56% (ET)
TCS has won a contract worth US$11.5mn from Uganda Revenue Authority (ET)
Information & Broadcasting Ministry has asked DoT to initiate action against Bharti Airtel for launching IPTV services without requisite approvals (ET)
Jindal Saw is planning to set up a ship building & repair hub in Gujarat with an investment of over US$2bn (ET)
RIL and Essar Oil have agreed to buy entire crude oil from Cairn India’s Rajasthan block and are negotiating prices (ET)
ADAG Group is set to launch 24-hour FM radio station in Singapore in collaboration with local station MediaCorp Radio (ET)
Tech Mahindra has bagged a US$7.6mn deal with telecom Fiji Ltd (BL)
RIL signs an agreement with UAE-based, Crescent Petroleum Company to jointly develop oil & gas projects in Middle East (DNA)
Jet Airways and Kingfisher Airlines are moving towards zero commission structure for travel agents (ET)
IndusInd Bank has raised Rs2.2bn from the overseas market through fresh issue of shares (ET)
Vicat buys 6.67% stake in Sagar Cements for Rs700mn at Rs700/share (BS)
ICICI Ventures may list US$1.5bn realty fund on the London Stock Exchange (BS)
Essar Shipping is planning to set up ports in Brazil, China and Vietnam (ET)
IndusInd Bank hikes PLR by 50bps (BS)
NIIT has signed an agreement with Infospectrum to market latter’s customizable Educational Resource Planning solutions in schools (BL)
Nilkamal to invest Rs1.5bn to develop retail stores in India (FE)
Essar Shipping arm lines up Rs100bn expansion plans for third party logistics (DNA)
Tata Chemical to spend Rs5bn to de-bottleneck and modernized its plant in current fiscal (DNA)
Economic News
RBI hikes repo rate by 50bps with immediate effect and raises CRR by 50bps in two stages (ET)
Exports grew by 2.9% in FY08 to US$155.4bn (ET)
Car makers to increase prices by Rs,6000-Rs30,000 across models (BS)
CBDT has raised Direct Tax collection target for FY09 to Rs3.95trn (BL)
Cement prices may to increase by Rs3-5 per bag from 1st July in Bombay (FE)
RBI pumps in Rs387bn through repo window (FE)
Planning Commission says 9% growth is possible
Sell Jet Airways (518) SL 523 Target 508, 504
Sell RCom (474) SL 481
Target 464, 460
Sell Yes Bank (136) SL 140
Target 126, 123
Sell DLF (440) SL 447
Target 427, 424
Sell Titan (1019) SL 1034
Target 989, 980
The Indian Market is expected to have negative opening on the back of weak global cues, political uncertainty and rates hike by RBI. Tuesday, the Indian market closed in red for the fifth straight trading day backed by selling across the ground. The BSE Sensex fall below the 14,000 mark for the first time since late August 2007
Investors will have eye on the crucial meeting of the members of UPA with left scheduled today to decide on the fate of proposed deal between the Congress party and the U.S. President. Left parties had threatened to withdraw support if the government went ahead with the deal.
RBI on Tuesday raised its key lending rate and the CRR by 50 basis points each to tame inflation that hit a 13-year high early in June. As a second increase this month in its repo rate, the RBI raised the key lending rate to 8.5% from 8.0% with immediate effect. RBI will raise the cash reserve ratio to 8.75% from 8.25% in two stages, to 8.5% from July 5 and to 8.75% from July 19. These hikes will have adverse implications for the manufacturing sector, which have impact of high interest rates.
Today's Pick - Chambal Fertilisers
We recommend a sell in Chambal Fertilisers & Chemicals from a short-term perspective. From the charts to the stock we note that it had been on a medium-term uptrend from its March 2008 low of Rs 41, till it encountered resistance at Rs 94 in mid June.
The reversal from Rs 94 level has been supported by negative divergence in the daily moving-average convergence and divergence (MACD).
Recently, the stock penetrated the 21-day moving average and the medium-term up trendline, signalling bearishness. The daily MACD has displayed negative divergence and is indicating a sell.
The other daily momentum indicators are declining in the neutral region towards the bearish zone. Our short-term forecast for the stock is negative. We anticipate the stock’s down move to continue until it hits our price target of Rs 66 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining stop-loss at Rs 79
For the time being there is no fear of the unknown. The RBI has done what he can and we haven’t seen the last of hikes as yet. Just the other day the RBI governor Dr. Reddy had hinted at a "calibrated" approach to control inflation.In what seems to be a desperate political move to reign in inflation, the RBI has hiked both the repo rate and the CRR by half a percentage points each. We hear that a section of the market was perhaps aware of something like this in the offing. That explains the sharp fall yesterday in the last half an hour. The bloodbath may continue, at least at the start today.
On the political front, expect lots of voices from New Delhi as the UPA-Left panel on the Indo-US nuke deal meets today. Both sides may try and hammer out some compromise formula, as nobody wants an early election. The market may benefit if the outcome of the meet is definite. Any further uncertainty on this front will hit market sentiment. One will have to see which way the dice rolls. As far as global markets are concerned, there hasn't been any major fall, though the undertone remains precarious amid fresh worries over the financial sector and near-record crude oil prices.
Coming back to our market, banking, realty and auto stocks will bear the brunt of the selling pressure. Others like capital goods, construction and consumer-centric sectors may also decline. This doesn't mean stocks in the rest of the sectors will be any better off. Overall, we expect a gap-down opening. However, things may stabilise a wee bit as FIIs weren't big sellers yesterday and globally things are not that bad.
Much of the action today will be seen in the F&O segment, where most indicators are pointing to further weakness. For the Nifty, 4200 was seen as a big support. But, that has been broken. Most traders are net short. With F&O expiry tomorrow, Fed announcement (nothing much is expected) later today, and the UPA-Left meet, the bulls have their task cut out. Expect high volatility as has been the case in the last two days. In these turbulent and uncertain times, like we mentioned yesterday pick up the better counters available at rates you once asked for!.
FIIs were net buyers of Rs900.6mn (provisional) in the cash segment on Tuesday while the local institutions poured in Rs4.76bn. In the F&O segment, foreign funds were net sellers of Rs10.86bn
Volatility to prevail
A highly volatile session ended in negative terrain for fifth straight day on back of weak global cues coupled with al round selling in scrips across the sectors. Markets closed at days low and Nifty closed below the 4,000 mark for first time since Aug 24 2007.
The fall could be attributed to heavy selling in index heavyweights like Infosys, L&T and Tata Steel. However, bucking the negative trend were, Reliance Industries, HDFC and BHEL.
All the key Sectoral indices also ended in red, the BSE Metal index was the biggest loser, (down 3.5%), other like BSE PSU index (down 2.8%), BSE FMCG index (down 2.5%) and BSE IT index (down 2.1%).
Among the 50-Nifty, 41 stocks ended in negative terrain and only 9 stocks ended in green. Finally, the BSE benchmark Sensex lost 186 points to close at 14,106 and the Nifty index lost 75 points to close at 4,191.
TCS ended lower by 1.6% at Rs843. The company won a transformational engagement from the Uganda Revenue Authority (URA) to design and implement integrated tax administration system. The new system will manage all domestic domestic taxes and duties for the URA including income tax, value-added tax, witholding tax and other excise duties.
It will help the URA increase the level of tax compliance in the country, broaden the tax base and provide effecient service to Uganda's tax payers. The scrip touched an intra-day high of Rs864 and a low of Rs823 and recorded volumes of over 3,00,000 shares on BSE.
S.Kumars Nationwide gained by 0.5% to Rs106 after the company said that GIC SI would invest Rs9bn in Reid & Taylor through a fresh issue of shares and warrants. Post-conversion, GIC SI would own 25.4% of Reid & Taylor, valuing it at Rs35.40bn. The company will own 74.6% of Reid & Taylor (India) Ltd post the investment from GIC SI.
The scrip touched an intra-day high of Rs108 and a low of Rs105 and recorded volumes of over 1,00,000 shares on BSE.
Torrent Pharma rallied by over 12% to Rs174 after the company announced that it denied reports that the company’s founders would sell stake to Sun Pharma. The scrip touched an intra-day high of Rs182 and a low of Rs158 and recorded volumes of over 7,00,000 shares on BSE.
Orchid Chemicals declined by 4.7% to Rs225. The company announced that it received approval from the Canadian TPD for ANDS (Abbreviated New Drug Submission) for Piperacillin and Tazobactam for Injection.
The scrip touched an intra-day high of Rs243 and a low of Rs224 and recorded volumes of over 9,00,000 shares on BSE.
NIIT Ltd gained by 2.5% to Rs104 after the company announced that the company has entered into a strategic alliance with Infospectrum to offer proven Educational Resource Planning Solutions". The scrip touched an intra-day high of Rs105 and a low of Rs101 and recorded volumes of over 90,000 shares on BSE.
Binani Industries was down 1.2% to Rs106. The Board of Directors of the Company at its meeting held on June 23, 2008, approved the enhancement of guarantee limits from Rs16bn to Rs40bn. The scrip touched an intra-day high of Rs110 and a low of Rs106 and recorded volumes of over 3,000 shares on BSE.
Sagar Cements gained by a over 3 percent to Rs388 after the company announced that the Board of Directors at its meeting held on June 23, 2008, has decided to implement a green field cement plant of 5.5mn ton capacity in Gulbarga District in Karnataka through a special purpose vehicle to be jointly promoted with M/s. Vicat S.A., France.
To mobilize a sum of Rs700mn through issue of 10,00,000 equity shares of Rs10/- each at a premium of Rs690/- per share on a preferential basis to M/s. Vicat S.A., France, its affiliates and subsidiaries. The scrip touched an intra-day high of Rs394 and a low of Rs375 and recordede volumes of over 1,00,000 shares on BSE.
Jain Irrigation ended 2% lower to close at Rs469. The company announced that it secured contract worth Rs227.7mn. The scrip touched an intra-day high of Rs480 and a low of Rs461 and recorded volumes of over 16,00,000 shares on BSE.
Corporate News
Suzlon Energy is partnering Bahrain-based PE firm Arcapita to bid for Chinese alternative energy Company, Honiton Energy Holdings estimated at US$400mn (ET)
GMR Group is likely to buy 50% stake in US-based power generation firm InterGen in a deal valued at US$1.2bn (ET)
GIC Special Investments to acquire 25.4% stake in S Kumars’ Reid & Taylor brand for Rs9bn (ET)
HDIL buys 51% stake in Broadcast Initiatives, a Sri Adhikari Bros Group controlled media firm for an undisclosed amount (ET)
Reliance Infra bags Rs120bn EPC order from R Power to develop Shashun UMPP (BS)
Tata Group has increased stake in its South African Telecom Venture Neotel by 30% to 56% (ET)
TCS has won a contract worth US$11.5mn from Uganda Revenue Authority (ET)
Information & Broadcasting Ministry has asked DoT to initiate action against Bharti Airtel for launching IPTV services without requisite approvals (ET)
Jindal Saw is planning to set up a ship building & repair hub in Gujarat with an investment of over US$2bn (ET)
RIL and Essar Oil have agreed to buy entire crude oil from Cairn India’s Rajasthan block and are negotiating prices (ET)
ADAG Group is set to launch 24-hour FM radio station in Singapore in collaboration with local station MediaCorp Radio (ET)
Tech Mahindra has bagged a US$7.6mn deal with telecom Fiji Ltd (BL)
RIL signs an agreement with UAE-based, Crescent Petroleum Company to jointly develop oil & gas projects in Middle East (DNA)
Jet Airways and Kingfisher Airlines are moving towards zero commission structure for travel agents (ET)
IndusInd Bank has raised Rs2.2bn from the overseas market through fresh issue of shares (ET)
Vicat buys 6.67% stake in Sagar Cements for Rs700mn at Rs700/share (BS)
ICICI Ventures may list US$1.5bn realty fund on the London Stock Exchange (BS)
Essar Shipping is planning to set up ports in Brazil, China and Vietnam (ET)
IndusInd Bank hikes PLR by 50bps (BS)
NIIT has signed an agreement with Infospectrum to market latter’s customizable Educational Resource Planning solutions in schools (BL)
Nilkamal to invest Rs1.5bn to develop retail stores in India (FE)
Essar Shipping arm lines up Rs100bn expansion plans for third party logistics (DNA)
Tata Chemical to spend Rs5bn to de-bottleneck and modernized its plant in current fiscal (DNA)
Economic News
RBI hikes repo rate by 50bps with immediate effect and raises CRR by 50bps in two stages (ET)
Exports grew by 2.9% in FY08 to US$155.4bn (ET)
Car makers to increase prices by Rs,6000-Rs30,000 across models (BS)
CBDT has raised Direct Tax collection target for FY09 to Rs3.95trn (BL)
Cement prices may to increase by Rs3-5 per bag from 1st July in Bombay (FE)
RBI pumps in Rs387bn through repo window (FE)
Planning Commission says 9% growth is possible
Tuesday, June 24, 2008
Will July Month See more Blood??? Subscribe to know
Use lower levels to add the large caps only even though the mid-cap and smaller stocks may have fallen more
SELL ONGC IN TRUCK LOADS N HOLD
Nifty at a support of 4212 and 4156 with resistance at 4325 and 4390 levels.
After a partial rebound from lower levels yesterday, we expect some bounce today. Barring European markets, which tumbled on bad set of economic data, most global markets ended flat to slightly negative. We see a cautious to perhaps a slightly higher opening in our market. Though a short-squeeze we predicted yesterday didn't fully materialise, the F&O segment did see some short covering. The Nifty June futures closed with a slight premium as against a discount of a few points. The open interest too declined substantially.
These factors point to short covering by the bears. More can be expected over the next couple days ahead of Thursday's settlement day. We will also have the outcome of the Fed meeting, where the US central bank is likely to keep rates steady while stressing on containing inflation.
On the political front, there hasn't been any significant new development, though some reports suggest that the UPA and Left may agree to some comprise formula to avoid early polls. A truce between the Congress and the red brigade could come as a welcome breather.
On the whole, the bulls may well have a good day in office after a four-day drubbing during which the Sensex has lost some 1,400 points. Much will hinge on global markets and F&O trends.
FIIs were net sellers of Rs6.66bn (provisional) in the cash segment on Monday while the local institutions poured in Rs917.5mn. In the F&O segment, foreign funds were net sellers of Rs1.66bn.
On Friday, FIIs were net sellers of Rs9.53bn in the cash segment. With this, they have pulled out almost $5.9bn from the Indian market this year.
Results Today: Amara Raja, Apollo Hospitals, Classic Diamond, Cyber Media, IndusInd Bank, Jet Airways, Patel Engineering, PSL, Ramsarup Industries, Sadbhav Engineering, Tata Chemicals and TV Today.
Shares of Rane Engine Valve Ltd. will get re-listed today.
Today's Pick -Tata Chemicals
We recommend a sell in a Tata Chemicals from a short-term perspective. It is evident from the charts that it was on a medium-term uptrend between March 2008 and May 2008 (from a low of Rs 255 to a high of Rs 440). However, the stock reversed direction and started experiencing selling pressure, after touching an all-time high of Rs 440. We notice a head and shoulders pattern (a top reversal pattern), spanning the last two months with neckline at Rs 333. On June 23, the stock breached this neckline and tumbled 6 per cent. The daily relative strength index has entered the bearish zone. The daily moving average convergence and divergence has entered the negative region too. We are bearish on the stock in the short-term. We expect the stock’s decline to prolong until it hits our price target of Rs 290 in the approaching trading sessions. Traders with short-term perspective can sell the stock while maintaining stop-loss at Rs 341
Corporate News
GMR will replace ONGC in Rs310bn Kakinada refinery and petrochemical project in Andhra Pradesh. (BS)
Tata Power plans to invest Rs250bn to boost its capacity by six-fold to 12,800mw by 2013. (BS)
GIC and Temasek may be allowed to pick up 10% stake each in ICICI Bank. (FE)
GAIL will issue one bonus share for every two equity shares held by its shareholders. (BS)
Wipro has raised Rs14bn through external borrowings. (BS)
Tech Mahindra has bagged a US$24mn engagement to assist Telecom New Zealand overhaul its retail business. (BL)
SBI is likely to raise its PLR and is awaiting fresh monetary action from the RBI to finalise the extent of increase. (BS)
Reliance Industries USA has acquired a polyester manufacturing facility in North Carolina for about US$12.2mn from Unifi Kinston and plans to invest US$215mn in that company. (ET)
Tata Motors has decided to absorb a significant portion of the cost increase of its Nano vendors. (ET)
Reliance Globalcom, the global arm of RCOM is entering into an alliance with a VOIP exchange in the US. (DNA)
M&M’s used-car business, First Choice is likely to sell 10% stake to Phi Advisors for ~Rs800mn. (ET)
Nalco will resume full production from June 25 after a strike cut the supply of coal to its Orissa power station. (BS)
Binani Cement has lined up capex plans of Rs16bn to take its global capacity to 13mmtpa by 2011-12. (BS)
Binani Cement is close to acquiring an African cement company for ~US$100mn. (ET)
Kingfisher Airlines and Deccan have slashed over 10% of their total daily flights. (BL)
Saint-Gobain Glass India plans to invest Rs10bn on a 0.3mn ton a year greenfield float glass making plant in Bhiwadi in Rajasthan. (BL)
ONGC Tripura Power Co, a unit of ONGC has awarded a Rs22.07bn order to a consortium of BHEL and GE for its 720 MW plant in Tripura. (ET)
Unichem has received a certification from the European Directorate for the Quality of Medicines and Healthcare for its active pharmaceutical ingredients plant in Roha, Maharashtra. (BL)
Unichem Laboratories has got approval from the US Food and Drug Administration for its formulations plant in the northern state of Uttar Pradesh. (ET)
JK Tyre has acquired 100% shares of Tornel, the Mexican Tyre company, along with its subsidiaries, for Rs2.7bn. (ET)
JK Tyre & Industries will raise prices of tyres by August. (ET)
Lupin has entered into a promotion agreement with Ascend Therapeutics Inc to promote its Suprax 400mg tablets in the US. (DNA)
The Parikhs, co-promoters of Zandu Pharmaceuticals have sent a letter to SEBI to thwart Emami Group’s attempt to take over the company. (ET)
Reliance Brands have entered into a 50:50 JV with Italy’s luxury sportswear brand Paul & Shark. (ET)
Alok Industries will invest Rs400mn in expanding its retail venture in FY09. (BL)
Religare Enterprises plans invest over Rs1bn for setting up 200 retail stores in the personal finance space under the Finmart brand over the next one year. (ET)
Pyramid Saimira Group, Chairman and MD P. S. Saminathan is considering an open offer to consolidate his stake in the company. (Mint)
Vodafone Essar has secured Rs70bn loan from lenders led by State Bank of India. (DNA)
SpiceJet plans to cut 20 flights from July 1. (BL)
Economic News
Around Rs80bn worth of real estate projects covering over 40mn square feet are facing delays. (BS)
DoT has asked TRAI to review termination charges. (BS)
Advance tax collection for the June 15 installment is expected to have gone up 30% on a yoy basis. (BL)
The June 30 bid submission date for the seventh round of NELP will not be deferred. (BL)
Indian corporate houses have raised a record more than Rs1trn by issuing corporate bonds during FY08. (Mint)
The DoT committee, formed to recommend ways to allocate and price 2G spectrum for mobile services, is likely to hold its first meeting in the first week of July. (ET)
The Competition Commission of India has asked SEBI to make compliance with competition law mandatory for listing on stock exchanges. (ET)
Government has held discussions with Nigeria to acquire more oil and gas fields. (FE)
RBI has decided that, for the limited purpose of valuation, all special securities issue by GoI, directly to the beneficiary entities, which do not carry SLR status may be valued at a spread of 25bps above the corresponding yield on GoI securities.
SELL ONGC IN TRUCK LOADS N HOLD
Nifty at a support of 4212 and 4156 with resistance at 4325 and 4390 levels.
After a partial rebound from lower levels yesterday, we expect some bounce today. Barring European markets, which tumbled on bad set of economic data, most global markets ended flat to slightly negative. We see a cautious to perhaps a slightly higher opening in our market. Though a short-squeeze we predicted yesterday didn't fully materialise, the F&O segment did see some short covering. The Nifty June futures closed with a slight premium as against a discount of a few points. The open interest too declined substantially.
These factors point to short covering by the bears. More can be expected over the next couple days ahead of Thursday's settlement day. We will also have the outcome of the Fed meeting, where the US central bank is likely to keep rates steady while stressing on containing inflation.
On the political front, there hasn't been any significant new development, though some reports suggest that the UPA and Left may agree to some comprise formula to avoid early polls. A truce between the Congress and the red brigade could come as a welcome breather.
On the whole, the bulls may well have a good day in office after a four-day drubbing during which the Sensex has lost some 1,400 points. Much will hinge on global markets and F&O trends.
FIIs were net sellers of Rs6.66bn (provisional) in the cash segment on Monday while the local institutions poured in Rs917.5mn. In the F&O segment, foreign funds were net sellers of Rs1.66bn.
On Friday, FIIs were net sellers of Rs9.53bn in the cash segment. With this, they have pulled out almost $5.9bn from the Indian market this year.
Results Today: Amara Raja, Apollo Hospitals, Classic Diamond, Cyber Media, IndusInd Bank, Jet Airways, Patel Engineering, PSL, Ramsarup Industries, Sadbhav Engineering, Tata Chemicals and TV Today.
Shares of Rane Engine Valve Ltd. will get re-listed today.
Today's Pick -Tata Chemicals
We recommend a sell in a Tata Chemicals from a short-term perspective. It is evident from the charts that it was on a medium-term uptrend between March 2008 and May 2008 (from a low of Rs 255 to a high of Rs 440). However, the stock reversed direction and started experiencing selling pressure, after touching an all-time high of Rs 440. We notice a head and shoulders pattern (a top reversal pattern), spanning the last two months with neckline at Rs 333. On June 23, the stock breached this neckline and tumbled 6 per cent. The daily relative strength index has entered the bearish zone. The daily moving average convergence and divergence has entered the negative region too. We are bearish on the stock in the short-term. We expect the stock’s decline to prolong until it hits our price target of Rs 290 in the approaching trading sessions. Traders with short-term perspective can sell the stock while maintaining stop-loss at Rs 341
Corporate News
GMR will replace ONGC in Rs310bn Kakinada refinery and petrochemical project in Andhra Pradesh. (BS)
Tata Power plans to invest Rs250bn to boost its capacity by six-fold to 12,800mw by 2013. (BS)
GIC and Temasek may be allowed to pick up 10% stake each in ICICI Bank. (FE)
GAIL will issue one bonus share for every two equity shares held by its shareholders. (BS)
Wipro has raised Rs14bn through external borrowings. (BS)
Tech Mahindra has bagged a US$24mn engagement to assist Telecom New Zealand overhaul its retail business. (BL)
SBI is likely to raise its PLR and is awaiting fresh monetary action from the RBI to finalise the extent of increase. (BS)
Reliance Industries USA has acquired a polyester manufacturing facility in North Carolina for about US$12.2mn from Unifi Kinston and plans to invest US$215mn in that company. (ET)
Tata Motors has decided to absorb a significant portion of the cost increase of its Nano vendors. (ET)
Reliance Globalcom, the global arm of RCOM is entering into an alliance with a VOIP exchange in the US. (DNA)
M&M’s used-car business, First Choice is likely to sell 10% stake to Phi Advisors for ~Rs800mn. (ET)
Nalco will resume full production from June 25 after a strike cut the supply of coal to its Orissa power station. (BS)
Binani Cement has lined up capex plans of Rs16bn to take its global capacity to 13mmtpa by 2011-12. (BS)
Binani Cement is close to acquiring an African cement company for ~US$100mn. (ET)
Kingfisher Airlines and Deccan have slashed over 10% of their total daily flights. (BL)
Saint-Gobain Glass India plans to invest Rs10bn on a 0.3mn ton a year greenfield float glass making plant in Bhiwadi in Rajasthan. (BL)
ONGC Tripura Power Co, a unit of ONGC has awarded a Rs22.07bn order to a consortium of BHEL and GE for its 720 MW plant in Tripura. (ET)
Unichem has received a certification from the European Directorate for the Quality of Medicines and Healthcare for its active pharmaceutical ingredients plant in Roha, Maharashtra. (BL)
Unichem Laboratories has got approval from the US Food and Drug Administration for its formulations plant in the northern state of Uttar Pradesh. (ET)
JK Tyre has acquired 100% shares of Tornel, the Mexican Tyre company, along with its subsidiaries, for Rs2.7bn. (ET)
JK Tyre & Industries will raise prices of tyres by August. (ET)
Lupin has entered into a promotion agreement with Ascend Therapeutics Inc to promote its Suprax 400mg tablets in the US. (DNA)
The Parikhs, co-promoters of Zandu Pharmaceuticals have sent a letter to SEBI to thwart Emami Group’s attempt to take over the company. (ET)
Reliance Brands have entered into a 50:50 JV with Italy’s luxury sportswear brand Paul & Shark. (ET)
Alok Industries will invest Rs400mn in expanding its retail venture in FY09. (BL)
Religare Enterprises plans invest over Rs1bn for setting up 200 retail stores in the personal finance space under the Finmart brand over the next one year. (ET)
Pyramid Saimira Group, Chairman and MD P. S. Saminathan is considering an open offer to consolidate his stake in the company. (Mint)
Vodafone Essar has secured Rs70bn loan from lenders led by State Bank of India. (DNA)
SpiceJet plans to cut 20 flights from July 1. (BL)
Economic News
Around Rs80bn worth of real estate projects covering over 40mn square feet are facing delays. (BS)
DoT has asked TRAI to review termination charges. (BS)
Advance tax collection for the June 15 installment is expected to have gone up 30% on a yoy basis. (BL)
The June 30 bid submission date for the seventh round of NELP will not be deferred. (BL)
Indian corporate houses have raised a record more than Rs1trn by issuing corporate bonds during FY08. (Mint)
The DoT committee, formed to recommend ways to allocate and price 2G spectrum for mobile services, is likely to hold its first meeting in the first week of July. (ET)
The Competition Commission of India has asked SEBI to make compliance with competition law mandatory for listing on stock exchanges. (ET)
Government has held discussions with Nigeria to acquire more oil and gas fields. (FE)
RBI has decided that, for the limited purpose of valuation, all special securities issue by GoI, directly to the beneficiary entities, which do not carry SLR status may be valued at a spread of 25bps above the corresponding yield on GoI securities.
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