Ebroking - Indian Stock Market

Share Market Update on Central Bank of India for 1QFY2012

2011-10-16T22:57:00.001-07:00

Share Market Update on Central Bank of India for 1QFY2012 with a Neutral recommendation.

For 1QFY2012, Central Bank ofIndia posted a 16.6% yoy decline in its net profit primarily due to higherprovisions. However, results were above our estimates on lower-than-estimatedoperating expenses. A sharp sequential dip in NIM and high slippages despitethe pending switchover to system-based NPA platform were the key highlights ofthe results. We maintain our Neutral view on the stock.

NIMdips on lower yield on investments; slippages remain elevated: The bank’s business momentumslowed during the usually lean quarter. Advances declined by 2.8% qoq (up 17.2%yoy) and deposits increased by 3.6% qoq (up 20.3% yoy). CASA deposits growthmoderated to 14.7% yoy, resulting in a 259bp qoq decline in CASA ratio to32.6%. Bulk deposits and CDs constituted a relatively higher ~33% of totaldeposits. The reduction in CASA ratio and the higher interest rate environmentresulted in a sharp 72bp qoq rise in cost of deposits to 6.8%. The yield onadvances went up by 77bp qoq to 11.4%. Reported NIM declined sharply by 48bpqoq to 3.0% primarily due to fall in yield on investments (fall of 73bp qoq).The sequential decline in NIM was exacerbated by the benefit of interest onincome tax refund of ~`130cr in 4QFY2011. Overall asset quality of the bankdeteriorated during the quarter, with annualised slippage ratio remainingelevated at 1.8% (1.1% in 1QFY2011) and net NPAs rising by 27.7% qoq. Slippagesremained elevated at 1.8% as compared to 1.1% in 1QFY2011. Provision coverageratio including technical write-offs declined to 65.2% from 67.6% in 4QFY2011.The bank is yet to switchover to the system-based NPA recognition platform,which could result in a substantial rise in slippages given the bank’s ruralbranches (37%) and a relatively large agri (16%) portfolio.

Outlook and valuation: At the CMP, the stock is trading at cheap valuations of 0.8xFY2013E ABV compared to its trading range of 0.5–1.5x with a median of 1.1xsince listing in 2007. However, due to near-term asset-quality concerns becauseof system-based NPA recognition, we remain Neutral on the stock.

Share Market Update on Bhushan Steel for 1QFY2012

2011-10-10T23:22:00.000-07:00

Share Market Update on Bhushan Steel for 1QFY2012 with a Neutral recommendation.

Strong top-line growth: During 1QFY2012, Bhushan Steel’s(BSL) net sales grew by 62.6% yoy to `2,232cr mainly on account of highervolumes of flat products. Flat products sales volumes grew by 80.2% yoy to388,790 tonnes, while long product sales volumes grew by 7.6% yoy to 100,664tonnes in 1QFY2012. Long product average realisation increased by 18.2% yoy to `42,915/tonne,while flat product average realisation decreased by 3.2% yoy to `49,294/tonne.

Depreciation and interest costs mute net profit growth: During 1QFY2012, EBITDAincreased by 62.1% yoy to `661cr, representing EBITDA margin of 29.6%, comparedto 29.7% in 1QFY2011. EBITDA/tonne increased to `13,505 (US$300) in 1QFY2012,compared to `13,186 (US$293) in 1QFY2011. Depreciation expense increased by182.4% yoy to `151cr due to increased capacity, while interest expenseincreased by 173.8% yoy to `216cr because of higher debt. A sharp increase indepreciation and interest costs resulted in net profit growth of only 2.0% yoy(despite 62.1% growth in EBITDA) to `210cr.

Outlook and valuation: At the CMP, the stock is trading at 8.1x FY2012E and 7.1x FY2013EEV/EBITDA, a significant premium over its peers. Although we expect salesvolume growth of 24.8% over FY2011–15E, we believe it is too early to play thevolume growth story of BSL as strong volume growth is expected only postFY2013. Further, although BSL uses a combination of BF-EAF technology toproduce steel, rising prices of iron ore and coal will affect its margins.Moreover, BSL’s debt-equity ratio remains high. Further, we believe theincrease in the stock price in the past three months fairly discounts thegrowth prospects of BSL. Hence, wemaintain our Neutral view on the stock.

Share Market Update on ACC for 2QCY2011

2011-09-28T02:40:00.000-07:00

Share Market Update on ACC for 2QCY2011 with a Neutral recommendation.

For 2QCY2011, ACC posted a 6.2% decline in its bottom line;however, it was ahead of our estimates. The bottom-line decline was despitehigher realisations, as the company faced margin pressure on account of higherpower and fuel costs and freight costs. During the quarter, ACC faced the fullimpact of the domestic coal price hike carried out by Coal India. Realisationwas higher as cement prices, which touched the peak in March 2011 remainedstrong until May.
At current levels, we maintain our Neutral view on the stock.

OPM at24.1%, down 527bp yoy: ACCposted an 18.9% yoy growth in net sales to `2,403cr on account of growth indispatches and better realisation.
The company’s dispatches for the quarter stood at 5.9mn tonnes, up 12.5% yoy,on account of higher capacity (on a yoy basis) operational at Wadi and Chandaduring the quarter. However, on a sequential basis, dispatches declined by3.7%, indicating the lukewarm demand scenario. Realisation also improved by5.7% yoy and 4.1% qoq to `4,052/tonne.

Outlook and valuation: All-Indiacement dispatches, which witnessed a marginal decline in 1QFY2012, are expectedto pick-up post the monsoons. Demand growth is expected to be driven byinfrastructure activities with FY2012 being the last year of the Eleventh Plan.However, the ongoing SFIO investigation on cement pricing might soften theextent of price recovery. We expect ACC to register a 16.0% CAGR in its topline over CY2010–12, aided by capacity addition. However, the bottom line isexpected to grow at a lower CAGR of 4.6% over the mentioned period due tohigher operating costs. At current levels, the stock is trading at EV/EBITDA of6.8x and EV/tonne of US$110, based on CY2012 estimates. We maintain our Neutral view on the stock, as we believe it is fairlypriced.

Share Market Result Update on Sarda Energy and Minerals for 1QFY2012

2011-09-22T02:31:00.001-07:00

ShareMarket Result Update on Sarda Energy and Minerals for 1QFY2012 with a Buy recommendation and a Target Price of `259 (12 months).

For 1QFY2012, Sarda Energy and Minerals (SEML) reported net sales growth of 17.2% yoy to `254cr. However, adjusted net profit declined by 48.3% yoy to `14cr due to higher costs. We maintain our Buy rating on the stock.

Ferro alloy segment drags SEML’s 1QFY2012 profitability: During 1QFY2012, SEML’s net sales grew by 17.2% yoy to `254cr due to higher realisation in the steel segment coupled with higher sales volume of billets, ingots and power. Blended steel realisation grew by 96.1% yoy to `33,036/tonne on account of improved product mix. EBITDA margin declined substantially by 857bp yoy to 14.4% mainly on account of higher raw-material costs. Thus, EBITDA declined by 26.6% yoy to `37cr. EBIT of the ferro alloys segment declined by 73.0% yoy to `7cr on account of lower realisation coupled with higher prices of key inputs. Interest costs for the quarter increased by 112.6% yoy to `6cr, owing to which adjusted net profit declined by 48.3% yoy to `14cr.

Outlook and valuation: We continue to believe that SEML is well poised to benefit from a) backward integration into coal and iron ore, b) commercial production of pellets and c) increased power and ferro alloy production. Moreover, firm sponge iron and billet prices should lead to higher capacity utilisation in FY2012 and FY2013, thereby leading to higher sales volumes. A key catalyst for the stock would be restarting of its iron ore operations at Rajnandgaon. We recommend Buy with a target price of `259, valuing the stock at 5.5x FY2013E EV/EBITDA.

Share Market Update on IDBI Bank for 1QFY2012

2011-09-20T00:00:00.000-07:00

Share Market Update on IDBI Bank for 1QFY2012 with a Neutral recommendation.

For 1QFY2012, IDBI Bank reported healthy 33.6% yoy growth in its net profit to `335cr, which was in-line with our estimates but lower than consensus forecasts. Sequentially stable NIM, lower fee income and higher slippages despite the already-functioning system-based NPA recognition platform were the key highlights of the result. We maintain our Neutral view on the stock.

NIM surprises positively while slippages rise: For 1QFY2012, the bank’s advances declined by 1.3% qoq (up 14.5% yoy). Deposits also declined by 2.3% qoq (up 12.1% yoy). Advances growth on a yoy basis was driven by strong 49.8% growth in retail credit, which has increased its share to 19.2% from 14.7% in 1QFY2011. CASA deposits growth continued to be healthy at 49.2% yoy, leading to a 429bp yoy improvement in CASA ratio to 17.3%. The bank was able to largely sustain (down marginally by 3bp qoq) its reported NIM at 2.1%, despite the 54bp qoq rise in cost of funds. The annualised gross slippage ratio increased to 1.6% as compared to 0.5% in 4QFY2011. Slippages were on the higher side considering the fact that the bank had already switched over to system-based NPA recognition platform. Profitability in 1QFY2012 was aided by the write-back of provisions on SRs of `92cr. However, profits were lower due to the higher effective tax rate at 44.6% (27.6% in FY2011) due to non-tax deductibility of certain provisioning expenses. Profits for the quarter included ~`18cr from the two subsidiaries, which had merged with the bank in 4QFY2011. Branch expansion was healthy with addition of 67 branches, taking the network to 883.

Outlook and valuation: We believe the bank is set to improve its credit and deposit mix going forward on the back of its strong branch expansion plans. The bank has been amongst the fastest-growing in terms of CASA deposits over the past few years even when compared to private banks and now has a market share of 2.1%. At the CMP, the stock is trading at 1.1x FY2013E P/ABV adjusting for SASF (0.8x without adjusting). However, in our view, there are near-term cyclical headwinds to margins and asset quality. Hence, we maintain our Neutral stance on the stock

Share Market Update on Federal Bank for 1QFY2012

2011-09-08T01:49:00.000-07:00

Share Market Update on FederalBank for 1QFY2012 with a Buy recommendation and a Target Price of `478 (12 months).

For 1QFY2012, Federal Bank recorded net profit growth of 10.8% yoy (down 14.9% qoq), below our estimates, mostly due to higher provisioning expenses than built in by us. Management has attributed the rise in NPAs (slippages at `323cr) during the quarter to one-off employee-related issues, which led to a spurt in slippages in the retail book. Fee income according to management also suffered due to this one-off event. We recommend a Buy rating on the stock.

CASA ratio improves; however, asset-quality woes continue: For 1QFY2011, advances grew by 0.1% qoq to `31,972cr, while deposits declined by 0.2% qoq to `42,936cr. Although total deposits declined during the quarter, the bank was able to sequentially grow its savings and current account deposits by 3.5% and 4.2%, respectively, leading to a 96bp increase in CASA ratio to 27.2%. Including NRE deposits, total low-cost deposits constituted 32.8% of total deposits. Cost of deposits increased by 103bp qoq, leading to a 13bp qoq decline in reported NIM to 3.9%. Slippages for 1QFY2012 stood at `343cr (annualised 4.0%), driven by higher slippages on the retail (~`140cr) and SME (~`140cr) front. Management has attributed the increase in slippages on the retail side to one-off employee-related issues that cropped up during the quarter, leading to slackness on the recovery front. During 1QFY2012, non-interest income declined by 17.2% qoq (up 6.4% yoy), mainly due to sluggishness in fee-related initiatives and recoveries on the retail side (recoveries were down by 42.6% qoq), as per management.

Outlook and valuation: Post the recent correction, the stock is trading at 1.1x FY2013E ABV. While lower leverage is leading to low RoE at present, the bank’s core RoA is relatively high and should improve further as asset-quality pressures start moderating. We recommend Buy on the stock with a target price of `478.

Stock Market Update on Exide Industries for 1QFY2012

2011-08-02T00:35:00.000-07:00

Stock Market Update on Exide Industries for 1QFY2012 with a Neutral recommendation.

Exide Industries (Exide) reported a weak performance in 1QFY2012, missing our top-line and bottom-line estimates, largely due to lower-than-estimated growth in automotive replacement battery volumes and lower demand for inverter batteries. Further, slowdown in demand growth restricted Exide’s ability to completely pass on raw-material cost increases, thus negatively affecting its operating margin. We maintain our long-term positive outlook on the battery industry; however, considering the lower-than-expected 1QFY2012 results and subdued guidance for the next couple of quarters going ahead, we revise our revenue and earnings estimates downwards. We recommend Neutral on the stock.

Lower automotive and industrial battery demand and raw-material cost pressures led to weak quarterly performance: For 1QFY2012, Exide reported modest 8% yoy growth (1.4% qoq) in its total revenue to `1,244cr, led by a ~5% increase in sales realisation. Revenue growth was restricted on account of muted volume growth due to 1) slower growth in the automotive vehicle segment, resulting in lower OE demand for automotive batteries and 2) pleasant weather conditions in north Indian markets, leading to a 25.7% decline in inverter battery volumes. EBITDA margin declined substantially by 498bp yoy (88bp qoq) to 17.9%, impacted by lack of buoyancy in industrial and automotive batteries demand and increased lead prices. Lead prices jumped by 31% yoy, leading to a 400bp yoy increase in raw-material costs – which accounted for 63.6% of sales. However, higher other income of `31cr and lower tax outgo restricted the fall in net profit to a large extent. Thus, the bottom line reported a marginal 1.3% yoy decline (0.3% qoq) to `163cr.

Outlook and valuation: We expect Exide to post a ~15% revenue CAGR over FY2011–13E, leading to a 12% CAGR in net profit. At `155, Exide is fairly valued at 16.6x FY2013E earnings. We recommend Neutral on the stock. Our fair value for Exide works to `161. We value Exide’s core operations at 16x its FY2013E earnings at `149 and its stake in ING Vysya Life Insurance at `12/share on FY2013E NBAP.

Stock Market Update on Infotech Enterprises for 1QFY2012

2011-07-27T02:10:00.000-07:00

StockMarket Update on Infotech Enterprises for 1QFY2012 with a Neutral recommendation.

For 1QFY2012, Infotech Enterprises (Infotech) reported good set of results with volume growth of 4.4% and 6.3% qoq in the network and content engineering (NCE) and engineering manufacturing and industrial products (ENGG) verticals, respectively. To control staff costs and rationalise the employee pyramid, the company plans to hire 1,300 freshers in FY2012, out of which ~270 were hired in 1QFY2012 and the remaining are expected to join in 2QFY2012. We expect Infotech to post a 21.5% CAGR in USD revenue over FY2011–13E. Valuing the company at 9x FY2013E EPS of `16.3, we recommend a Neutral rating.

Quarterly highlights: For 1QFY2012, Infotech reported revenue of US$77.5mn, up 7.8% qoq, on the back of 5.6% qoq volume growth. The company witnessed price increase of 0.1% qoq in this quarter. In rupee terms, revenue came in at `346.7cr, up 6.4% qoq. EBITDA and EBIT margin declined by 180bp and 136bp qoq to 12.5% and 9.2%, respectively, due to wage hikes given from April 1, 2011 (12% for offshore employees and 3–4% for onsite employees).

Outlook and valuation: Management has now guided for revenue growth of 23–30% for FY2012, and it expects to maintain the revenue growth rate of 5–7% CQGR. The company plans to hire 2,600 employees in FY2012 with ~1,300 freshers. Also, management expects the EBITDA margin exit rate to be at 16%. Management has been time and again missing on its guidance by a wide margin in terms of revenue growth as well as profitability metrics. Also, growth in NCE is primarily due to contribution from Wellsco. We expect margins to bottom out in FY2012 at 14.3% and rebound to 16.1% only in FY2013 as on the back of strong fresher additions, utilisation will not stand as a margin lever. Hence, with no near-term triggers, we recommend Neutral on the stock.

How to invest in Indian stock market?

2011-02-14T03:22:00.000-08:00

Investing in Indian stock market is the best way to build wealth. However, many people are wary of the stock market as they think stock investment is a risky investment. Stock investments are risky, but if investment is made in the right stocks and in a proper manner, it is the only way to build wealth and beat inflation.

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Super Sixer Equity Trading Tips

2010-12-22T02:57:00.000-08:00

According to the famous equity market investor Peter Lynch, the key to making money in stocks is not to get scared out of them. If you are new to equity trading or think that equity market is not your cup of tea, read on to discover six rules for investing smartly in the equity market!

1. Don’t buy stocks just because someone you know has recommended it! Before buying a stock, conduct preliminary research about the stock and the company. Read the financial statements and find out about the business, promoters and management.

2. Understand you risk tolerance level or how much risk you can take? Make investment in equity market based on your risk capacity.

3. Don’t wait for a correction to enter the market. More money is lost is waiting for market corrections to happen than in market corrections.

4. Do not panic when the equity market falls. Equity markets follow a cyclical trend and are influenced by many factors. The fundamentals and future prospects of the company do not change just because market undergoes a correction.

5. Be disciplined in equity trading. Create individual stop loss levels for all your equity investments based on the volatility of the stock. When the stop loss levels are hit, sell the stock instead of averaging it out at lower levels.

6. Don’t keep dud stocks in your portfolio in the hope that they will go up one day. Cut your losses and move ahead. Invest in some other stocks which will give you a better return in the same time frame.

Stick to these rules and invest smartly in the equity market!

Trade conveniently in stocks with Angel Broking

2010-12-13T20:59:00.000-08:00

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Market Outlook --- October 8, 2010

2010-10-07T23:12:00.000-07:00

Dealer’s Diary
The markets opened on a flat note with a positive bias, following mixed cues from global markets. But, soon markets traded in red on account of lack of buying at higher levels. However, the indices managed to cut much of the early losses as buying support was witnessed among power and FMCG stocks. As the day progressed, the indices continued to trade in a narrow range. Further, domestic indices witnessed a heavy sell-off as sentiments turned negative due to weak opening of European stocks. Finally, the markets ended on a weak note as selling pressure was witnessed across sectors with the Sensex and Nifty down by 1.1% each. BSE mid-cap and small-cap indices were down by 0.7% and 0.9%, respectively. Among the front liners, Tata Power, Hero Honda, Cipla, Reliance Communications and Hindalco gained 0–3%, while Tata Steel, DLF, Reliance Infra., HDFC and BHEL were down 2–5%. Among mid caps, Apollo Hospitals, Jagran Prakashan, Biocon, Glaxosmithkline, South Indian Bank gained 4–10%, while JM Financial, Manappuram Gen, Escorts, Eicher Motors and Ispat Ind. lost 4–10%.

Markets Today

The trend deciding level for the day is 20390/6142 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20507 – 20698/6177 - 6234 levels. However, if NIFTY trades below 20390/6142 levels for the first half-an-hour of trade then it may correct up to 20198 – 20081/6085 – 6050 levels.

Economic and Political News
• Food inflation dips marginally to 16.24%
• Food inflation would ease from November with the arrival of new crop: Government
• Imports of sensitive items up by 21% in April–July to Rs23,039cr
• New policy on FDI in multi-brand retail soon: Commerce Ministry

Corporate News

• Zydus Cadila gets US FDA nod to sale anti-blood pressure drug
• S&P revises outlook of Tata Steel and its UK unit to stable
• Government to decide on Cairn deal by year end

Market Outlook ---- October 7, 2010

2010-10-06T23:39:00.001-07:00

Dealer’s Diary

Markets opened on an upbeat note as the benchmark indices witnessed a gap up opening on the back of strong surge in overnight US markets and positive Asian markets. However, the markets failed to sustain the early momentum and pared some of the opening gains as the day progressed. Indices continued to trade in the positive territory in early afternoon trade as strong buying activity was seen among realty, metals, and PSU stocks. Further, the indices rallied upwards, led by the positive opening of European indices. Finally, markets ended their session with modest gains on the back of broad-based buying across sectors. The Sensex and Nifty closed up 0.7% each. BSE mid-cap and small-cap indices outperformed the Sensex, up 1.1% and 0.8%, respectively. Among the front liners, JP Associates, Sterlite Ind., Hindalco, RIL and Jindal Steel gained 1–7%, while M&M, Hindustan Unilever, SBI, Cipla and RCOM were down 0–1%. Among mid caps, JM Financial, Binani Cement, Shipping Corp., State Bank of Mysore and Indiabulls Real Estate gained 8–18%, while DB Corp., BF Utilities, Torrent Pharma, Pidilite Ind. and Triveni Engineering lost 2– 4%.

Markets Today

The trend deciding level for the day is 20553/6186 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20660 – 20776/6224 - 6261 levels. However, if NIFTY trades below 20553/6186 levels for the first half-an-hour of trade then it may correct up to 20437 – 20330/6149 - 6111 levels.

Economic and Political News

· Gems and jewellery exports may grow 30–35% in FY2011: GJEPC

· India-EU FTA by year-end: Sharma

· NHAI in talks with SBI for Rs10,000cr loan

Corporate News

· Shree Renuka Sugars gets 118mn litres ethanol supply orders from OMCs

· Eros International lines up Rs700cr capex for the next two years

· GAIL places orders for laying Dabhol-city gas pipeline

· Surya Roshni to invest Rs50cr for expansion

Market Outlook----October 6, 2010

2010-10-05T21:33:00.000-07:00

Dealer’s Diary

The markets opened the trading session on a flat note with a negative bias amid unfavorable global cues. However, the markets soon gained momentum and moved in the positive territory. The up move was limited as selling pressure was witnessed at higher levels and the indices traded in a narrow range exhibiting volatility. Further, the positive opening for the European markets supported the up move in the domestic market, but it did not last long and the indices ended the session on a weak note. The Sensex and Nifty closed down 0.3% and 02%, respectively. BSE mid-cap and small-cap indices outperformed the Sensex, gaining 0.8% and 1.1%, respectively. Among the front liners, RCOM, Reliance Infra, Mahindra & Mahindra, JP Associates and ACC gained 2-4%, while HDFC, HDFC Bank, Hindustan Unilever, Bharti Airtel and Hindalco were down 1-3%. Among mid caps, Sintex Ind., Indiabulls Financial Services, Kalpataru Power, Hindustan Oil and Patni Computer Systems gained 5-8%, while Man Infra, Amtek Auto, Eicher Motors, MVL and Shree Global Traders lost 2-3%.

Markets Today

The trend deciding level for the day is 20450/6151 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20518 - 20628/6183 - 6221 levels. However, if NIFTY trades below 20450/6151 levels for the first half-an-hour of trade then it may correct up to 20340 - 20273/6113 - 6080 levels.

Economic and Political News

· India's rubber import increased by over 50% to 28,720 tonnes in September

· 18.18mn mobile users added in August: TRAI

· Common Wealth Games may add US $5bn to the economy: Government

· Inflation above comfort zone: Subir Gokarn

· NELP-IX to be launched next week

Corporate News

· Lanco Infratech raises Rs5,549cr debt to fund Vidarbha project

· Jindal Stainless hikes investment in Orissa project to Rs6,400cr

· Tata Motors starts open sales of Nano in Maharashtra, Karnataka, UP, WB

· JSW Energy commissions power project in Rajasthan

Market Outlook --- October 5, 2010

2010-10-04T22:37:00.000-07:00

Dealer’s Diary
Indian markets opened on a bullish note on the back of positive global cues. Further, the indices inched higher with Nifty hitting the 6,200 levels, led by strong buying across the auto and realty sectors. The trading momentum continued to be strong; however, profit booking emerged at higher levels paring initial gains. Further, the sentiment turned negative as European indices opened on a weak note. Finally, the benchmark indices managed to close in the positive zone with the Sensex and Nifty ending up 0.2% and 03%, respectively. BSE mid-cap and small-cap indices outperformed the Sensex, gaining 0.7% and 0.3%, respectively. Among the front liners, M&M, RCOM, HDFC, JP Associates and ICICI Bank gained 2–3%, while ITC, Sterlite Ind., Hero Honda, Bharti Airtel and L&T were down 1–2%. Among mid caps, Bhushan Steel, UCO bank, Mannapuram General, OnMobile Global and Tulip Telecom gained 6–17%, while Pipavav Shipyard, Motilal Oswal, Indraprastha Gas, Gujarat Fluro and Parsvanath Developers lost 3–8%.

Markets Today

The trend deciding level for the day is 20540/6175 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20643 – 20809/6206 – 6253 levels. However, if NIFTY trades below 20540/6175 levels for the first half-an-hour of trade then it may correct up to 20373 - 20271/ 6129 - 6098 levels.

Economic and Political News
• No signs of overheating in economy: Montek Singh
• India’s September gold imports down 17.9% yoy to 32.6tonnes from 39.7tonnes
• Capital controls not needed for now: Finance Minister
• Plan panel highlights need for 4% farm growth
Corporate News
• Tata Motors acquires Italy's Trilix SRL for Euro1.85mn
• Ashok Leyland's vehicle sales surge 90% in September 2010
• Lupin’s US arm gets final USFDA nod for generic Hyzaar, Cozaar
• Alstom Projects secures order worth Rs550mn from Lanco Infratech
• Petron Engg. bags Rs1.64bn order from Adani Infra
• Alfa Laval wins Rs380mn order from Tata Chemicals

Market Outlook ---- September 24, 2010

2010-09-23T21:39:00.000-07:00

Dealer’s Diary

The key benchmark indices skidded for the second straight day, tracking subdued European markets after data suggested weak economic activity in that region. Moreover, in domestic economic news, the spike in food inflation in the latest week rekindled worries that the Central Bank may interfere to check it earlier than expected. The market breadth turned negative in late trade from positive breadth earlier in the day. Interest rate-sensitive banking and realty stocks led the fall. The Sensex and Nifty closed down by 0.4% and 0.5%, respectively. While BSE mid-cap index closed low by 0.2%, the small-cap index closed flat in green. Among the front liners, HUL, ONGC, ITC, M&M and JP Associates gained 1–2%, while ICICI Bank, RIL, Bharti Airtel, Cipla and DLF lost 1–2%. Among mid caps, Dalmia Cement, BF Utilities, REI Agro, PTC India and HT Media gained 5–9%, while Blue Star, Rajesh Exports, Indiabulls Real Estate, Radico Khaitan and Indusind Bank lost 4–5%.

Markets Today

The trend deciding level for the day is 19877/5966 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19982 – 20104/6000– 6041 levels. However, if NIFTY trades below 19877/5966 levels for the first half-an-hour of trade then it may correct up to 19756–19650/5926–5892 levels.

Economic and Political News

· Food grain output looks comfortable in kharif 2010, says Pawar

· Food inflation rises to 15.46%; rains, floods push up prices

· Govt. clears 24 FDI proposals worth Rs2,727cr

Corporate News

· EIH to raise Rs1,300cr via rights issue; gets board nod

· KEC Intl. completes acquisition of SAE Towers

· L&T to foray into South Africa's power sector; to form a JV

· RCOM moves TDSAT challenging disconnection notice by BSNL

Market Outlook ---- September 23, 2010

2010-09-22T22:36:00.000-07:00

Dealer’s Diary

The market breadth was weak, contrasting strong breadth in the opening session of trade. High volatility was the hallmark of the day's trading session. The Sensex and Nifty slipped below the levels of 20,000 and 6,000, respectively, in mid-morning trade, after touching a 32-month peak in opening trade. The key benchmark indices slumped to the day's low in mid-afternoon trade as heavyweights underwent correction following a three-day surge and hit fresh intraday lows in afternoon trade as European stocks fell in early trade. The Sensex and Nifty closed down by 0.3% each. However, BSE mid and small-cap indices closed down by 0.4% and 0.2%, respectively. Among the front liners, Maruti Suzuki, HDFC, SBI, Tata Power and Wipro gained 1–4%, while JP Associates, RCOM, L&T, TCS and Infosys lost 2–3%. Among mid caps, JSL Ltd., Triveni Engg., Punj Lloyd, Hotel Leela, Gammon India and Dalmia Cement gained 5–17%, while Geekay Finance, Jubilant Food Works, Berger Paints and Ispat Industries lost 4–5%.

Markets Today
The trend deciding level for the day is 19950/5992 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20097–20252/6037–6083 levels. However, if NIFTY trades below 19950 / 5992 levels for the first half-an-hour of trade then it may correct up to 19795 –19649/5946-5901 levels.

Economic and Political News

• EPFO asks private PF trusts to pay 9.5% interest
• Farm output rise to ease food inflation, says Ahluwalia
• Gold rises to record high after Fed rates nod
Corporate News
• IOC unveils plan to double petrochemical revenue to Rs15,000cr
• Nestle to invest Rs1,230cr in new plant, R&D centre
• ONGC ventures into shale gas exploration

Market Outlook ---- September 22, 2010

2010-09-21T22:03:00.001-07:00

Dealer’s Diary
The key benchmark indices logged smart gains for the third straight session on foreign institutional investors' buying spree and robust 2Q advance tax payments from frontline companies. Nevertheless, volatility was intense as the Sensex and Nifty gyrated near their psychological levels of 20,000 and 6,000, respectively, along with achieving their highest levels in 32 months. Despite the rise, the market breadth was weak, as small and mid-cap stocks underwent correction. While, FMCG shares declined on profit booking, software pivotals gained on improving sentiment in the US economy. The Sensex and Nifty closed with gains of 0.5% each. However, BSE mid and small-cap indices were down by 1% each. Among the front liners, TCS, Wipro, Tata Power, Tata Motors and HDFC gained 2–5%, while ITC, JP Associates, DLF, Reliance Infrastructure and Jindal Steel lost 1–2%. Among mid caps, Kwality Dairy, CMC, IBN 18, Marico and JM Financials gained 4%, while Redington India, TVS Motor, Sigrun Holdings, IL&FS Transportation Network and Indraprastha Gas lost 4–6%.

Markets Today
The trend deciding level for the day is 19984/6001 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20107–20212/6041–6072 levels. However, if NIFTY trades below 19984/6001 levels for the first half-an-hour of trade then it may correct up to 19879–19756/5970–5930 levels.

Economic and Political News
• India's GDP likely to grow by 9.2% in FY2011, says CMIE
• Kotak Mahindra ups interest rates on term deposits
• Rupee at 4-month peak; up 15 paise against dollar
Corporate News
• Bajaj to increase Discover production from next month
• Ranbaxy gets USFDA’s approval to sell Alzheimer's disease drug
• US firm, Prakash Steelage ink MoU for specialised forging unit

Market Outlook ---- September 21, 2010

2010-09-20T22:40:00.000-07:00

Dealer’s Diary
The key benchmark indices opened on firm note on frenzied buying, outperforming its Asian and European counterparts. The market breath was strong throughout the trading session and it hit a fresh 32-month high in late trade as result of foreign institution’s buying spree and higher 2Q advance tax payments from frontline companies. FMCG stocks were in demand, with ITC striking its lifetime high. Metal and mining stocks gained, mirroring rise in global metal prices. Banking shares rose on fresh buying, while software pivotals saw mixed trend. The Sensex and Nifty closed with gains of 1.6% each. BSE mid and small-cap indices were up by 0.7% each. Among the front liners, RCOM, ITC, Hero Honda, HUL and HDFC gained 3–5%, while Sterlite Industries, NTPC, TCS, BHEL and Tata Power lost 0–1%. Among mid caps, Blue Star, GMDC, MVL, Brigade Entertainment and Bajaj Hindusthan gained 5–8%, while Edelweiss Cap., Blue Dart, Sigrun Holdings, Rajesh Exports and Purvankara Projects lost 3–5%.

Markets Today
The trend deciding level for the day is 19760/5952 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20074–20241/6018–6056 levels. However, if NIFTY trades below 19760/5952 levels for the first half-an-hour of trade then it may correct up to 19592–19278/5914–5847 levels.

Economic and Political News
• BSE to launch mobile trading platform
• FM expects over 8.5% GDP growth in 2010–11
• Gold hits fresh record peak on economy concerns
Corporate News
• Bharti Airtel selects 3G network gear partners
• Core Projects buys two US companies for US $20mn
• Rural Electrification Corp. gets infrastructure finance company status

Market Outlook----September 17, 2010

2010-09-16T22:50:00.001-07:00

Dealer’s Diary
The key benchmark indices scaled their 32-month high in early trade. However, the market slipped into the red in morning trade, as most Asian stocks and US index futures fell before surging to a fresh 32-month high in afternoon trade after the Reserve Bank of India (RBI), at a mid-term policy review, signaled that it may be nearing a pause in its current tightening cycle. The market came off the higher level later. The market hit a fresh intraday low in late trade. The Sensex came off the lower level later. The Sensex and Nifty closed with losses of 0.4% and 0.6%, respectively. BSE mid and small-cap indices closed down by 1.0% and 0.4%, respectively. Among the front liners, DLF, HDFC, SBI, Maruti Suzuki and L&T gained 1–3%, while Infosys, Reliance Comm., Bharti Airtel, Sterlite Inds and Jaiprakash Associates lost 2–3%. Among mid caps, Alstom Projects, Indraprastha Gas, Alfa Laval, Berger Paints and Redington gained 3–6%, while HT Media, Shree Global, Pantaloon, Jagran Prakashan and Dish TV lost 4–8%.

Markets Today
The trend deciding level for the day is 19479/5849 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19575–19732/5882–5935 levels. However, if NIFTY trades below 19479/5849 levels for the first half-an-hour of trade then it may correct up to 19322–19226/5796–5763 levels.

Economic and Political News
• Food inflation rises to 15.1%
• Fiscal deficit to be contained at targeted 5.5%: RBI
• Government raises DA to 45%, to cost exchequer Rs9,303cr p.a.
• Economy to grow by 9% in FY2011–12: Finance Minister
• Monsoon rains 19% above normal in the past week: Met. Department

Corporate News

• Ashok Leyland bags order for 2,850 buses from Tamil Nadu government
• JK Paper to raise about Rs450cr
• Ispat to sell 10% stake to UK’s Stemcor

Market Outlook ---- September 15, 2010

2010-09-15T23:46:00.001-07:00

Dealer’s Diary

The markets opened on a firm note on data showing heavy buying by FIIs on Monday. The market surged in morning trade, extending initial gains. The sharp rally was followed by the Sensex instantly paring gains. The market came off the lower level in mid-morning trade as the rate of rise in inflation eased in August 2010. Stocks moved in a narrow range in early afternoon trade. The market strengthened in afternoon trade before coming off the higher levels in mid-afternoon trade. The Sensex and Nifty closed with gains of 0.7% and 0.6%, respectively. BSE mid and small-cap indices underperformed the benchmark indices to end lower by 0.6% and 0.7%, respectively. Among the front liners, Wipro, Jaiprakash Associates, Tata Motors, Sterlite Industries and DLF gained 3–4%, while Hindalco, ACC, SBI, Tata Power and Tata Steel lost 1–2%. Among mid caps, Sigrun Holdings, Dewan Housing, Ashok Leyland, Dish TV and Wockhardt gained 4–10%, while Ruchi Soya, Coromandel Intl, MVL, S. Kumars Nationwide and Britannia Industries lost 5–6%.

Markets Today

The trend deciding level for the day is 19351/5798 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19483–19620/5836–5876 levels. However, if NIFTY trades below 19351/ 5798 levels for the first half-an-hour of trade then it may correct up to 19214–19082/5758–5720 levels.

Economic and Political News

· April-Aug indirect tax revenue up 45% yoy

· Inflation dips to 8.5% on new series debut

· Coal curbs to hit new power units

Corporate News

· S Kumars raises US $50mn in share sale

· RPG firms buys 10% in Australian coal company

· United Spirits to buy 54.69% stake in PDL for Rs73.95cr

Market Outlook ---- September 14, 2010

2010-09-13T22:08:00.000-07:00

Dealer’s Diary
The market surged in the morning trade due to firm Asian stocks. The key benchmark indices scaled their highest level in nearly 32 months. The market continued its uptrend in early afternoon trade. Stocks further extended gains in mid-afternoon trade, bolstered by better-than-expected industrial production numbers in July. The market hit a fresh intraday high in afternoon on positive global cues post Europe's Basel III norms for banks and US economic data. Finally, the Sensex and Nifty closed with gains of 2.2% and 2.1%, respectively. BSE mid and small-cap indices underperformed the benchmark indices to end higher by 0.8% and 0.2%, respectively. Among the front liners, SBI, HDFC, Hindalco, Reliance Infra and ICICI Bank gained 4–6%, while Wipro, Reliance Comm., Hero Honda and Bharti Airtel lost 0–1%. Among mid caps, Sigrun Holdings, Berger Paints, BASF India, UTV Software and M&M Finance gained 6–10%, while Shree Global Traders, Ruchi Soya, GSPL, IVR Prime and Allcargo Global lost 3–11%.

Markets Today
The trend deciding level for the day is 19,099 / 5,723 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19,353 – 19,497 / 5,807 – 5,855 levels. However, if NIFTY trades below 19,099 / 5,723 levels for the first half-an-hour of trade then it may correct up to 18,955 – 18,701 / 5,676 – 5,592 levels.

Economic and Political News
• New WPI series comes into effect today
• Urea investment policy to do away with competitive bids for new units
• RBI names panel to examine LAF corridor
• Indian Banks may not need more capital for Basel-III
Corporate News
• Shriram, TPG to buy Vishal Retail for Rs100cr
• Nestle to invest Rs500cr in food processing unit
• Wyeth sues Dr. Reddy’s Lab over drug patent

Market Outlook ---- September 13, 2010

2010-09-12T21:46:00.000-07:00

Dealer’s Diary

The market cut gains after hitting a 31-month high at the onset of the trading session. Stocks came further off highs in mid-morning trade. A bout of volatility was witnessed in early afternoon trade as the key benchmark indices came off lows. The market held the positive zone in afternoon trade before surging in mid-afternoon trade, as European stocks and US index futures moved into the green from red. The market cut gains, soon after hitting a fresh 31-month high in late trade. The Sensex and Nifty closed with gains of 0.7% and 0.6%, respectively. BSE mid and small-cap indices gained 0.7% and 0.3%, respectively. Among the front liners, M&M, SBI, HDFC Bank, ICICI Bank and Tata Steel gained 2–3%, while Cipla, Tata Motors, Reliance Infra, ACC and Sterlite Industries lost 1–2%. Among mid caps, BASF India, Whirlpool, Coromandel International, Sigrun Holdings and KEC International gained 6– 10%, while Shree Global Trading, MVL, Indraprastha Gas, Gammon Infra and Radico Khaitan lost 3–20%.

Markets Today

The trend deciding level for the day is 18764 / 5632 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18859 – 18918 / 5656 - 5671 levels. However, if NIFTY trades below 18764 / 5632 levels for the first half-an-hour of trade then it may correct up to 18705 – 18610 / 5616 - 5593 levels.

Economic and Political News

· IPO norms for non-life insurance companies in three weeks: IRDA

· Food inflation rises to 11.47% from 10.86%

· IIP grows 13.8% yoy in July 2010

· Govt to introduce two new CPI indices for tracking inflation by January 2011

Corporate News

· Lanco Infra achieves financial closure of 1,320MW project

· Kotak Realty invests Rs250cr in Emaar MGF projects

· Emami, Marico join fray for Paras Pharma

· Power Grid's Rs8,000cr FPO to hit street in November

Market Outlook ---- September 8, 2010

2010-09-07T21:48:00.000-07:00

Dealer’s Diary
The benchmark indices continued their previous session’s positive streak by opening in green following a healthy start in Asian indices. The markets gained further ground in the morning session but the rally was short-lived as a minor sell-off took the indices lower. The indices continued to trade in a narrow zone until the final session, where a swift bout of buying took the markets to fresh 31- month highs. However, profit booking in the final half hour erased the gains from the rally with indices closing the session with moderate gains. The Sensex and Nifty closed with gains of 0.5% each. BSE mid and small-cap indices gained 0.1% and 0.6%, respectively. Among the front liners, ACC, L&T, TCS, JP Associates and Jindal Steel gained 2–7%, while HUL, SBI, HDFC Bank, Tata Power and M&M lost 1%. Among mid caps, Prism Cement, Wockhardt, Madras Cements, India Cements and Dalmia Cement gained 9–16%, while Sirgun Holdings, United Breweries, United Breweries Holdings, HT Media and Amtek Auto lost 4–7%.

Markets Today

The trend deciding level for the day is 18643 / 5600 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18714 – 18782 / 5629 – 5654 levels. However, if NIFTY trades below 18643 / 5600 levels for the first half-an-hour of trade then it may correct up to 18574 – 18503 / 5575 – 5547 levels.

Economic and Political News
• Companies bill to become law by fiscal-end: MCA Secretary
• Govt. will soon start releasing monthly data on FDI outflows
• FDI inflows down by 49% in July 2010
• Natural rubber production up 12% in August at 72,500tonnes

Corporate News

• Wipro may pass the cost rise from visa fees to clients
• Aditya Birla Nuvo to infuse Rs300cr in Aditya Birla Finance Ltd.
• Yes Bank to raise Rs500cr by December via Tier II capital: MD
• Tata Steel puts South African unit (Tata Steel KZN Pte) on the block

Market Outlook --- September 7, 2010

2010-09-06T22:12:00.001-07:00

Dealer’s Diary

The Indian indices witnessed a broad-based rally following strong gains in global indices, as the US reported a better-than-expected payroll data, giving credibility to recovery in the world's biggest economy. The markets opened gapup and continued to rise steadily without any major dip throughout the session. The positive sentiment was evident from lack of volatility. The benchmark indices, viz. BSE Sensex and S&P CNX Nifty, hit their highest level in the last 31 months as good monsoon and sustained buying by foreign funds boosted investor sentiment. The Sensex and Nifty closed with gains of 1.9% and 1.8%, respectively. BSE mid and small-cap indices rose in line with benchmark indices, registering gains of 1.3% and 1.8%, respectively. Among the front liners, Tata Steel, Hindalco, ICICI Bank, Sterlite Industries and JP Associates gained 3–7%, while Hero Honda, Reliance Comm., HUL and L&T lost 0–2%. Among mid caps, MVL, Gujarat Gas, Apollo Tyres, Sterling Bio and Indian Metals gained 6– 15%, while KEC International, Sirgun Holdings, Allcargo Global, Nirma and Sunteck Realty lost 2–7%.

Markets Today

The trend deciding level for the day is 18428 / 5549 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18732 – 18904 / 5618 - 5658 levels. However, if NIFTY trades below 18428 / 5549 levels for the first half-an-hour of trade then it may correct up to 18256 – 17952 / 5508 - 5439 levels.

Economic and Political News

· Decision on Cairn-Vedanta deal in 4–6 weeks: Murli Deora

· Govt. planning IOC, ONGC stake sale in March quarter

· Direct tax collections up 14% during April–August 2010

· Marine exports jump about 22% in July 2010

Corporate News

· PFC to raise US $240mn loans in Japan and China

· HDFC Bank hikes BPLR by 50bp to 16.25%

· Firstsource inks outsourcing deal with Axis Bank

· Aurobindo Pharma in licensing pact with Astra Zeneca

Market Outlook ---- September 6, 2010

2010-09-05T22:03:00.000-07:00

Dealer’s Diary
The markets opened in green following cues from Asian indices. However, markets traded in a narrow range with high volatility and gave up early gains. By the beginning of the afternoon session, markets traded in red, but mildly recovered to trade near their previous close before slipping again to fall near the day’s lows. The beginning of the final session again witnessed recovery, taking indices in the green, but a sharp sell-off took indices lower in the negative. The Sensex and Nifty closed lower by 0.1% each, while the BSE mid and small-cap indices outperformed their benchmark indices with gains of 1.0% each. Among the front liners, Hero Honda, Bharti Airtel, Reliance Infra, ONGC and HUL gained 1–2%, while Jindal Steel, JP Associates, Hindalco, Sterlite Industries and Reliance Ind. lost 1–2%. Among mid caps, KEC Int., Nirma, MVL, Escorts and MRF gained 7–14%, while KGN Industries, Sirgun Holdings, Rajesh Exports, Infotech Enterprises and Peninsula Land lost 3–4%.

Markets Today
The trend deciding level for the day is 18248 / 5488 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18290 – 18358 / 5502 - 5525 levels. However, if NIFTY trades below 18248 / 5488 levels for the first half-an-hour of trade then it may correct up to 18180 – 18138 / 5465 - 5451 levels.

Economic and Political News
• Maharashtra govt. probing irregularities in HCC’s Lavasa project
• Govt. clears US $5bn airplane purchases by SpiceJet, IndiGo and Jet Lite
• Govt. allows duty-free export of 5.5mn cotton bales

Corporate News

• RIL buys 3mn barrels spot Brazil crude
• ADAG picks up 15% in new Kerala airport
• Birlas raise stake in Hindalco by 4%
• Britannia to invest Rs100cr in two new plants in Bihar and Orissa

Market Outlook ---- September 3, 2010

2010-09-02T22:08:00.000-07:00

Dealer’s Diary

On Thursday, markets witnessed selling pressure towards late trades wiping off almost entire gains in contrast to the strong start. Buoyant auto sales in August 2010 and robust manufacturing activity bolstered sentiment in early trades. European stocks too edged higher amidst volatile trades. The Asian markets were firm on encouraging economic data. The Indian markets pared gains in a volatile afternoon session only to regain strength in mid-afternoon trades. It cut gains in late trades as index heavyweight Reliance Industries declined. The Sensex and Nifty closed up 0.2% and 0.3%, respectively. The BSE mid- and small-cap indices closed up 0.8% and 1.1%, respectively. Among the frontliners, Jaiprakash Associates, Sterlite Industries, Tata Power, HDFC and HDFC Bank gained 1–4%, while Hero Honda, TCS, BHEL, Bharti Airtel and Infosys lost 1–3%. Among the mid-caps, Apollo Tyres, Gujarat NRE Coke, Bayer Corp, IOB, and Ispat Industries gained 6–12%, while Sterlite Technologies, KGN Industries, State Bank of Bikaner, Dredging Corp and MVL lost 4–5%.

Markets Today

The trend deciding level for the day is 18270/5491 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18324–18140/5509–5533 levels. However, if NIFTY trades below 18270/5491 levels for the first half-an-hour of trade then it may correct up to 18184–18129/5467–5449 levels.

Economic and Political News

· Trade deficit in the first four months of the financial year reached US$43.6bn

· CM wants incentives to SEZ to continue

· Shipping ministry sanctions funds to port for land

Corporate News

· JSW Steel raises prices by 3-4%

· IRB Infra in pact with Indian Hotels to build hotel

· Welspun Corp bags Rs700cr orders

· Nalco open to equity dilution in US$3.9bn Indonesian project

Market Outlook

2010-09-01T21:19:00.000-07:00

Dealer’s Diary
The market extended gains in morning trade and turned range bound in mid-morning trade. Strong global cues pushed the market sharply higher in the second half of trade. The market spurted to the day's high in mid-afternoon trade and extended gains in late trade as European stocks and US index futures rose. Strong auto sales, expansion in the manufacturing sector in August 2010 and resumption of buying by foreign funds underpinned sentiments. All the sectoral indices on the BSE were in green and the market breadth was strong. The Sensex and Nifty closed up by 1.3% each. BSE mid-cap and the small-cap indices closed up by 1.7% and 1.8%, respectively. Among the front liners, RCOM, Hindalco Industries, Sterlite Industries, Bharti Airtel and Tata Steel gained 3–5%, while Hero Honda, HDFC and ONGC lost 0–2%. Among mid caps, STC, FDC, United Breweries, Dredging Corp. and State Bank of Mysore gained 10–14%, while Allcargo Global, Shree Global Tradefin, Jain Irrigation, Fresenius Kabi Oncology and GSK Consumer lost 2–4%.

Markets Today

The trend deciding level for the day is 18153 / 5451 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18280 – 18353 / 5499 - 5527 levels. However, if NIFTY trades below 18153 / 5451 levels for the first half-an-hour of trade then it may correct up to 18080 – 17953 / 5424 - 5376 levels.

Economic and Political News
• Fiscal deficit fell 42% to Rs91k cr during April-July
• India's July exports up 13.2% yoy
• Govt says no to fresh gas allocation from KG-D6
• Coal India may not need anchor investors to support IPO

Corporate News

• RIL notifies fourth gas strike in D3 block of KG basin
• ONGC can decide on bidding for Cairn India by October
• HDFC raises benchmark lending rates
• Elder Pharma plans US $50mn QIP issue

Market Outlook

2010-08-31T22:31:00.000-07:00

Dealer’s Diary

The market opened on a weak note, tracking lower Asian stocks and extended losses in mid-morning trade as RIL’s stock fell on the news of its acquisition of stake in EIH Ltd. Further, weak global stocks offset data showing robust GDP growth of 8.8% in 1QFY2011. However, the market staged a mild recovery after sliding to a fresh intraday low in afternoon trade. The intraday recovery gathered steam in mid-afternoon trade as European stocks and US index futures came off initial lows. High volatility was witnessed in late trade. The Sensex and Nifty closed down by 0.3% and 0.2%, respectively. The BSE mid-cap and the small-cap indices closed lower by 0.6% and 1%, respectively. Among the front liners, M&M, ITC, Maruti Suzuki, Tata Motors and Bharti Airtel gained 1–3%, while RCOM, Jaiprakash Associates, RIL, Jindal Steel and DLF lost 2–4%. Among mid caps, United Breweries, Emami, Radico Khaitan, KGN Industries and Marico gained 4–9%, while EIH, State Bank of Mysore, Rajesh Exports, State Bank of Travancore and State Bank of Bikaner & Jaipur lost 5–7%.

Markets Today

The trend deciding level for the day is 17936 / 5388 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18051 – 18131 / 5428 - 5453 levels. However, if NIFTY trades below 17936 / 5388 levels for the first half-an-hour of trade then it may correct up to 17856 – 17740 / 5363 - 5323 levels.

Economic and Political News

· Government expects GDP growth to be more than the projected 8.5% in FY2011

· Mines Ministry seeks cabinet nod for BGML revival through Nalco

· Maharashtra ethanol makers to keep 50% alcohol for petrol blending

· Cement firms cut prices by Rs2–4/bag

Corporate News

· M&M terminates contract with US distributor for pick-ups

· Royal Orchid to increase room tariff from October 2010

· Tata Communications signs two-year deal with Malaysia-based Axiata

Market Outlook---August 31, 2010

2010-08-30T22:41:00.000-07:00

Dealer’s Diary
Volatility was the order of the day as the market swung between gains and losses after the government tabled the much-awaited Direct Taxes Code bill in the Lok Sabha. The market surged in early trade, tracking gains in Asian stocks and gained strength in mid-morning trade. However, it came off the lower level in afternoon trade and regained the positive zone after turning negative for a brief period in mid-afternoon trade. Immense volatility was witnessed in the last one hour of trade as the Sensex alternatively swung between gains and losses. The Sensex and Nifty closed up by 0.2% and 0.1%, respectively. BSE mid-cap index closed up by 0.1%, while the small-cap index closed down by 0.1%. Among the front liners, Tata Steel, Bharti Airtel, ONGC, Hindalco Industries and Reliance Infrastructure gained 2–3%, while ITC, BHEL, TCS, L&T and Infosys lost 0–1%. Among mid caps, EIH, KGN Industries, Pipavav Shipyard, Baja Electricals and Aurobindo Pharma gained 4–11%, while Pfizer, HCL Infosystems, FDC, MVL and State Bank of Travancore lost 3–4%.

Markets Today

The trend deciding level for the day is 18070 / 5425 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18179 – 18326 / 5460 - 5504 levels. However, if NIFTY trades below 18070 / 5425 levels for the first half-an-hour of trade then it may correct up to 17923 – 17813 / 5381 - 5346 levels.

Economic and Political News
• Government approves 1000MW grid-connected solar power projects
• India largest recipient of World Bank loans in 2009–10
• MoEF expands terms of reference of Posco committee

Corporate News

• PNB raises fixed deposit rate by 25bp
• RCOM has appointed Prashant Gokarn as the head for its 3G business operations
• EdServ to raise Rs12cr via warrants issue
• ACIL enters into contract farming for 173 acres in Gujarat
• Mundra Port begins operations at Gujarat terminal

Market Outlook ---- August 30, 2010

2010-08-29T22:22:00.001-07:00

Dealer’s Diary

The key benchmark indices slumped on worries over the pace of the US economy’s recovery. IT stocks fell after the Union Cabinet approved the new Direct Taxes Code bill, wherein it proposed a hike in MAT on book profits to 20% from the prevailing 18%. The market recovered from the lower level at the onset of the trading session. The intraday recovery gathered strength in morning trade as Asian stocks came off lows, led by recovery in Japanese shares. The market extended losses to hit fresh intraday lows in mid-afternoon trade as European stocks extended initial losses and slumped in late trade. The Sensex and Nifty closed down 1.3% each, while the BSE mid-cap and small-cap indices closed lower by 1% and 1.3%, respectively. Among the front liners, ONGC, Tata Steel, RCOM and ACC gained 0–3%, while DLF, Hero Honda, ICICI Bank, Tata Power and JP Associates lost 2–3%. Among mid caps, FDC, Ispat Ind., Eicher Motors, Havells and Escorts gained 3–11%, while J&K Bank, Jubilant Food., Great Offshore, Puravankara and MVL declined 5–7%.

Markets Today

The trend deciding level for the day is 18064 / 5432 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18183 – 18368 / 5472 - 5535 levels. However, if NIFTY trades below 18064 / 5432 levels for the first half an hour of trade then it may correct up to 17879 – 17759/5369 – 5329 levels.

Economic and Political News

· Core infrastructure industries output up 3.9% in July 2010

· Auto component industry to touch US $110bn by 2020: ACMA

· Gujarat Government has earmarked Rs350cr for infra, tourism development

Corporate News

· Jindal Power's Rs13,000cr project gets initial 'Green' nod

· PFC to divest up to 20% through public issue: Government

· TCS signs Rs130cr e-governance contract with Madhya Pradesh

Market Outlook --- August 27, 2010

2010-08-26T22:09:00.000-07:00

Dealer’s Diary
The benchmark indices opened in the green amidst positive trend across Asian markets and overnight gains in US markets. The markets continued to trade in the positive zone in the morning trade, thereafter, as FMCG and banking stocks witnessed strong buying momentum. However, indices remained range bound at the onset of the afternoon trade, but soon extended morning gains following firm opening of the European markets. A sharp slide was witnessed in late afternoon trade as markets turned volatile and traded in the red ahead of the expiry of August futures. Finally, markets closed marginally higher with the Sensex and Nifty closing up 0.3% each. BSE mid-cap ended lower by 0.1%, while BSE small-cap was up 0.1%. Among the front liners, NTPC, DLF, ITC, SBI and HDFC gained 1-3%, while RCOM, Sterlite, RIL, HUL and JP Associates lost 0-3%. Among mid caps, Eicher Motors, Essar Shipping, Indusind Bank, Astrazeneca Pharma and FDC gained 3-14%, while State Bank of Mysore, State Bank of Travanacore, State Bank of Bikaner and Jaipur, MVL and Wockhardt declined 4-10%.

Markets Today
The trend deciding level for the day is 18216 / 5473 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18272 – 18317 / 5491 - 5505 levels. However, if NIFTY trades below 18216 / 5473 levels for the first half-an-hour of trade then it may correct up to 18170 – 18114 / 5460 - 5441 levels.

Economic and Political News
• Direct tax provisions cleared by Union Cabinet
• Commerce Ministry turns down rubber import duty cut
• Natural gas availability in India to increase by 52% by 2013-14
• Investment in real estate to touch US $300bn in 2010
• Food inflation eases to 10.05%
• Monsoon rains 29% above normal in the past week
• Government to soon notify fuel efficiency standards

Corporate News

• Tata Motors to raise up to Rs4,700cr: CEO
• ONGC to start gas production from KG Basin block in 2016-17
• Sona Koyo plans Rs80cr expansion by January 2011

Market Outlook----August 26, 2010

2010-08-25T21:47:00.001-07:00

Dealer’s Diary

The markets edged lower at the onset of the trading session, following weak cues from the Asian markets. The Sensex hit a fresh intraday low in morning trade as the market extended initial losses. A strong intraday rebound was witnessed in afternoon trade as European indices opened in the green; however, the markets came off the higher levels later. A sharp slide in late trade pushed the key benchmark indices to the day's lows at the fag end of the trading session. The Sensex closed down by 0.7% and the Nifty closed down by 0.8%. BSE mid-cap and BSE small-cap also witnessed declines and closed down by 1.5% and 1.4%, respectively. Among the front liners, Sterlite Industries, ONGC, ITC, TCS and Infosys gained 0–1%, while DLF, Tata Steel, Hindalco, Cipla and Hero Honda lost 2–4%. Among mid caps, FDC, Ruchi Soya, Brigade Enterprises, Oriental Bank of Commerce and BASF India gained 2–7%, while BF Utilities, State Bank of Travancore, EIH, State Bank of Bikaner and Jaipur and IBN18 Broadcast declined 6–10%.

Markets Today

The trend deciding level for the day is 18216 / 5574 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18276 – 18372 / 5495 – 5527 levels. However, if NIFTY trades below 18216 / 5574 levels for the first half-an-hour of trade then it may correct up to 18120 – 18060 / 5441 - 5420 levels.

Economic and Political News

· India to speed up trade talks with EU, Japan and Malaysia

· Rs50,000cr infrastructure fund to be set up by early next fiscal: Montek Singh Ahluwalia

· State firms not to counterbid for Cairn: Oil Ministry

· Inflation a major concern: RBI

Corporate News

· State Bank of Mysore to come with rights issue at Rs540/share with 3:10 ratio

· Cummins India plans Rs750cr ramp-up

· Mahindra & Mahindra to complete Ssangyong acquisition in 4 months

· Religare promoters make 20% open offer in the firm at Rs457/share

· Royalty rates on radio to shift to revenue sharing from fixed fee regime

· Piramal Healthcare plans to sell Thane land: Reports

Market Outlook----August 24, 2010

2010-08-23T23:38:00.000-07:00

Dealer’s Diary
The key indices opened positive but soon turned volatile and lost ground. However, the Sensex regained its positive zone in morning trade and continued to move in a narrow range thereafter. Fresh buying in select pivotals pushed the market to the day's high in early afternoon trade. The market once again slipped into the red in afternoon trade. The Sensex regained the positive zone later, but slipped into red at the fag end of the trading session before closing marginally positive. The Sensex closed with marginal gains of less than 0.1% and Nifty closed with gains of 0.2%. While BSE mid-cap gained 0.8%, BSE small-cap closed with gains of 0.9%. Among the front liners, JSPL, Cipla, Bharti Airtel, ONGC and ICICI Bank gained 2-3%, while Reliance Infra, ITC, Jaiprakash Associates, HDFC and HDFC Bank lost 1-2%. Among mid caps, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Travancore, Radico Khaitan and Videocon Ind. gained 9-20%, while Sigrun Holdings, Shriram City Union, Shree Cement, Karnataka Bank and FDC declined 3-5%.

Markets Today
The trend deciding level for the day is 18412 / 5538 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18452 – 18495 / 5556 - 5568 levels. However, if NIFTY trades below 18412 / 5538 levels for the first half-an-hour of trade then it may correct up to 18369 – 18328 / 5525 - 5507 levels.

Economic and Political News
• Government extends sops to exporters
• Government confident of US $200bn exports in FY11
• Government extends DEPB policy by six months

Corporate News

• PSU oil companies could make counterbid for Cairn
• Adani Power to expand capacity to 16,000 MW by 2014
• M&M signs MoU to buy stake in Ssangyong
• Trent plans to invest Rs275cr in Star Bazaar over next three years
• ARSS Infra bags Rs103cr order from National Highways, Orissa
• Jubilant Organosys signs US $51mn CRAMS contract

Market Outlook ---- August 23, 2010

2010-08-22T22:56:00.000-07:00

Dealer’s Diary

A bout of volatility was witnessed at the onset of the trading session as the key benchmark indices cut losses, soon after an initial slide. However, the intra-day recovery proved short-lived as the Sensex once again lost ground in morning trade, tracking weak Asian stocks. The market once again came off the lows in mid-morning trade as index heavyweight RIL bounced back. The market soon slipped into the red. Stocks moved in a narrow range in afternoon trade. The market remained subdued in mid-afternoon trade as European stocks reversed initial gains. Weakness persisted on the bourses in late trade. The Sensex and Nifty closed down by 0.3% and 0.2%, respectively. While, the BSE mid-cap index declined 0.1%, BSE small-cap index closed with gains of 0.1%. Among the front liners, DLF, L&T, Cipla, RIL and Hero Honda gained 1–4%, while Tata Motors, ICICI Bank, Wipro, HUL and ITC lost 1–3%. Among mid caps, Wockhardt, Jubilant Foodworks, BF Utilities, Gammon India and Brigade Enterprises gained 7–10%, while Chennai Petro, MVL, GSFC, HCC and Hindustan Oil declined by 4–7%.

Markets Today

The trend deciding level for the day is 18409 / 5530 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18457 – 18512 / 5547 – 5563 levels. However, if NIFTY trades below 18409 / 5530 levels for the first half-an-hour of trade then it may correct up to 18354 – 18306 / 5514 – 5497 levels.

Economic and Political News

· GST set to miss April 2011 deadline as the bill will not be introduced in the parliament

· DTC may moderate tax rates: CBDT Chairman

· Orissa to move apex court over POSCO project

· Apparel exporters ask government to provide more sops in FTP

· Forex reserves down by US $4.6bn to US $282.8bn for the week ending August 13

· FICCI demands additional duty sops for steel exports

Corporate News

· JSPL resumes implementation of steel and iron ore mine project in Bolivia

· BPCL buys stake in Australian shale gas fields

· Tata Steel to invest Rs1,000cr in Orissa plants

· Cairn-Vedanta deal may not get ministry’s approval

2010-08-22T22:52:00.000-07:00

Market Outlook ---- August 20, 2010

2010-08-19T23:02:00.000-07:00

Dealer’s Diary
The markets opened on a firm note, with the key benchmark indices hitting 2.5 year highs. Stocks extended gains in morning trades on firm Asian equities. The market ruled positive in early afternoon trades after the latest data showed that the pace of rise in inflation slowed early this month. However, in mid afternoon trades markets pared gains as the European stocks slipped into the red, soon after a firm opening. Frenzied buying in index pivotals saw the key benchmark indices hitting fresh highs. Stocks ended positive with the Sensex and Nifty closing with gains of 1.1% each. The BSE mid-and small-call indices closed with gains of 0.9% and 0.8%, respectively. Among the front-liners, ACC, ICICI, HDFC, JP Associates and Jindal Steel gained 2–5%, while ONGC, Tata Power, Tata Motors, Bharti Airtel and SBI lost 0–1%. Among the mid-caps, Wockhardt, MVL, Thomas Cook, Petronet LNG and Ruchi Soya gained 8–20%, while Shriram City Union Finance, Torrent Pharma, BF Utilities, Motherson Sumi and Nava Bharat Ventures declined by 3%.

Markets Today
The trend deciding level for the day is 18402/5521 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18528–18601/5564–5588 levels. However, if NIFTY trades below 18402/5521levels for the first half-an-hour of trade then it may correct up to 18329–18203/5497–5454 levels.

Economic and Political News
• World Bank approves loan of US $430mn for Mumbai Urban Transport Project
• Cheaper potato, onions pull down food inflation to 10.35%
• NTPC, Powergrid pull out of CWG sponsorship
Corporate News
• ADAG gets nod for exploration of Coal-Bed Methane in Madhya Pradesh
• Royal Orchid hotels plans to raise Rs150cr
• ONGC may have to pay US $13bn for Rajasthan block

Market Outlook ---- August 19, 2010

2010-08-18T22:19:00.000-07:00

Dealer’s Diary

The benchmark indices opened flat in early morning trades and remained range bound through the morning session. The Sensex gained towards late morning trades and ruled positive through the post noon session. Towards close, markets surged as buying was witnessed in the IT, auto, metal and banking counters. The Sensex and Nifty ended with gains of 1.2% each. The BSE mid- and small-cap indices closed 0.9% and 0.7% higher, respectively. Among the front-liners, Hindalco, Tata Motors, HDFC, HDFC Bank and ONGC gained 2–5%, while RCOM, RIL, M&M, Cipla and NTPC lost 0–1%. Among the mid caps, Gujarat Narmada Valley, State Bank of Mysore, GSFC and State Bank of Travancore gained 7–9%, while Thomas Cook, Simplex Infra and Edelweiss Cap declined 4–5%.

Markets Today

The trend deciding level for the day is 18204/5461 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18340–18422/5506–5533 levels. However, if NIFTY trades below 18204/5461 levels for the first half-an-hour of trade then it may correct up to 18121–17985/5435–5390 levels.

Economic and Political News

· RBI likely to hike policy rates in Sept review says D&B

· Sebi proposes to double retail investment limit to Rs2lakh

· More pension, insurance funds needed in infra: Mukherjee

Corporate News

· ADAG eyes 26% stake in ICEX

· Blackstone to invest $300 mn in Moser Baer Projects

· Future Ventures files draft prospectus for Rs750cr IPO

Market Outlook----August 16, 2010

2010-08-15T21:46:00.000-07:00

Dealer’s Diary
The market opened on a firm note after a strong debut of Indian travel agency MakeMyTrip on the NASDAQ on Thursday, August 12, 2010. Stocks extended gains as the BSE Sensex hit a fresh intraday high in early afternoon trade. The market came off the higher level, soon after hitting a fresh intraday high in afternoon trade. It further trimmed gains in mid-afternoon trade as index heavyweight Reliance Industries pared gains. The market came off the lower level in late trade. The Sensex and Nifty closed up by 0.5% and 0.7%, respectively. BSE mid-cap and small-cap indices gained marginally by 1.0% and 0.7%, respectively. Among the front liners, SBI, DLF, ITC, Maruti and Jaiprakash Associates gained 1–2%%, while Sterlite, RCOM, Reliance Infrastructure, M&M and Tata Motors declined by 1–4%. Among mid caps, Bombay Dyeing, Jet Air, Info Edge India, Patni Computer and Jai Corp. gained 8–12%, while KGN Industries, Essar Shipping, Edelweiss Cap, Indiabulls Power and Simplex lost 3–12%.

Markets Today
The trend deciding level for the day is 18159/5448 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18268–18369/5481–5509 levels. However, if NIFTY trades below 18159/5448 levels for the first half-an-hour of trade then it may correct up to 18058–17949/5420–5387 levels.

Economic and Political News
• Coal blocks to private firms through auction; Bill moved in RS
• Liquidity condition in economy easing says Government
• Over Rs12k cr of tax demands locked in court disputes says Pranab
Corporate News
• FIPB clears KKR's investment proposal in Dalmia Cement
• Food processing sector needs Rs1lakh cr investment in 5 yrs: MFPI
• NMDC buys land for Rs14,000cr Chhattisgarh steel project

Market Outlook ---- August 12, 2010

2010-08-12T00:31:00.000-07:00

Dealer’s Diary

The key benchmark indices edged higher in the morning trade, driven by a solid surge in Tata Motors, triggered by its turnaround 1QFY2011 results. However, indices reversed initial gains on weak Asian stocks and as US index futures declined. Markets continued to decline on negative cues from Asia and Europe. Finally, the key benchmark indices slumped in late trade as US index futures tumbled as investors fretted about the pace and sustainability of the global economic recovery, with the Sensex and Nifty closing down by 0.8% and 0.7%, respectively. BSE mid-cap and small-cap indices closed down by 0.5% each. Among the front liners, Tata Motors, Jindal Steel, Tata Power, Hindalco and HUL gained 1–5%, while Tata Steel, HDFC, Wipro, Mahindra & Mahindra and ICICI Bank declined by 2–3%. Among mid caps, Tata Investment, United Breweries, Anant Raj Ind., Bajaj FinServ and Essar Shipping grew 5–11%, while Educomp, IVRCL Infra, Hathway Cables, Sigrun Holdings and Jubilant Foods lost 5–10%.

Markets Today

The trend deciding level for the day is 18126/5436 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18208–18347/5459–5498 levels. However, if NIFTY trades below 18126/5436 levels for the first half-an-hour of trade then it may correct up to 17987–17905/5397–5373 levels.

Economic and Political News

· Centre to take up request for new SEZs on September 16

· Government sanctions Rs4,764cr more for submarine project

· Cement exports dip 29% at 2.3mn tonnes in 2009–10

· Parliament allows Rs68,000cr extra spend on oil subsidy and social sector

Corporate News

· Era Infra achieves financial closure of Rs1,100cr road project

· IDFC raises Rs3,500cr via QIP, Preference issue

· Ashok Leyland wins order worth US $26mn for 1,000 buses

Market Outlook---August 11, 2010

2010-08-10T21:43:00.000-07:00

Dealer’s Diary
The key benchmark indices opened on a tentative note and had an indecisive morning session due to the softness on the Chinese bourses and other Asian peers. Indices hit fresh intraday lows in early afternoon trade, as Asian stocks fell led by a steep slide in Chinese equities. Selling pressure intensified in afternoon trade as European stocks dropped in early trade as well. To close with, benchmark indices ended in the negative terrain due to lack of buying activity at higher levels, with the Sensex and Nifty closing down by 0.4% and 0.5%, respectively. BSE mid-cap and small-cap indices closed down by 0.5% and 0.4%, respectively. Among the front liners, Tata Motors, JP Associates, HUL, L&T and ICICI gained 1–4%, while Sterlite Industries, Wipro, Hindalco, TCS and Mahindra & Mahindra declined by 1–2%. Among mid caps, Prism Cement, Zydus Wellness, Indiabulls Real Estate, Educomp and Berger Paints grew 5–7%, while Jai Corp, Motherson Sumi, Sigrun Holdings, HT Media and Britannia Industries lost 4–6%.

Markets Today

The trend deciding level for the day is 18228/5466 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18285–18351/5486–5512 levels. However, if NIFTY trades below 18228/5466 levels for the first half-an-hour of trade then it may correct up to 18163–18105/5440–5420 levels.

Economic and Political News
• High Court asks SEBI to decide on MCX-SX plea by September 30
• Rajasthan government to take a 26% stake in ONGC’s Barmer refinery
• 18 foreign banks apply for branches, representative offices: Jr. Fin. Min. NN Meena
Corporate News
• M&M, Ruia submit bids for Ssangyong
• Uttam Galva increases prices by Rs500 a tonne
• GMR Infra gets US $1bn offer for InterGen stake