Markets Today

An early surge on the bourses proved short-lived as index heavyweights Reliance Industries, ICICI Bank and L&T, gave up initial gains. The Sensex, which had surged past 16,000 mark in early trade, fell below that level later. Nevertheless, the market breadth remained strong. 16 shares advanced from the 30-member Sensex pack.
Sensex settled 123.78 points or 0.79% higher at 15,750.40. Sensex gained 92.85 points at days low of 15,719.47 hit in late trade. Sensex opened with an upward gap of 396.68 points at 16,023.30 and advanced further to hit a high of 16,236.70 in early trade. At the days high, the Sensex rose 610.08 points. It oscillated in a band of 517.30 points in volatile trade
The broader based S&P CNX Nifty was up 14.65 points or 0.31% at 4,754.20. Nifty April 2008 futures were at 4741.15, a discount of 13.05 points as compared to spot closing.
Strong cues from global markets had boosted domestic bourses earlier in the day. US stocks rallied on Tuesday, 1 April 2008, after Lehman Brothers said it raised $4 billion in an offering of convertible preferred shares, which soothed fears it was heading for a fate similar to that of Bear Stearns. European markets, which opened after Indian market, were in green. Asian markets, which opened before Indian market Indian market, surged.
The market breadth was strong on BSE: 1734 shares advanced as compared to 938 that declined. 50 shares remained unchanged.
The BSE Mid-Cap index rose 0.08% to 6,400.37 and the BSE Small-Cap index advanced 0.51% to 7,901.91, as per provisional closing. Both these indices underperformed the Sensex.
The total turnover amounted to Rs 4769 crore on BSE as compared to Rs 4,718 crore yesterday, 1 April 2008
Total turnover in NSEs futures options segment amounted to Rs 34170.35 crore as compared to Rs 35886.84 crore yesterday, 1 April 2008
The BSE Consumer Durables index (up 0.80% to 3,917.70), the BSE IT index (up 2.93% to 3,644.35), the BSE Auto (up 1.56% at 4,539.52), the BSE Bankex (up 2.34% at 7,822.56), the BSE Health Care index (up 0.82% at 3,862.83), the BSE TecK index (up 2.04% to 3,078.22), outperformed the Sensex
The BSE Metal index (down 2.15% to 13,516.89), the BSE FMCG index (down 0.79% at 2,318.80), the BSE Oil & Gas index (down 0.25% to 10,328.08), the BSE Realty index (up 0.46% at 7,501.17), the BSE Power (down 0.49% to 3,137.12), the BSE Capital Goods index (down 0.46% at 13,498.15), and the BSE PSU index (down 0.11% to 7,387.62), underperformed the Sensex
IT pivotals advanced on fresh buying. Indias second largest software services exporter Infosys Technologies surged 4.34% to Rs 1483 on 1.66 lakh shares. It was the top gainer from Sensex pack.
Other IT pivotals, Wipro (up 1.10% to Rs 413.50), Satyam Computer Services (up 1.91% to Rs 405), and TCS (up 2.06% to Rs 852), advanced.
Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries eased sharply from days high of Rs 2455. It settled 0.22% lower at Rs 2340 on 13.27 lakh shares. The company said on Tuesday, 1 April 2008, it had discovered more gas in an exploration block off the east coast. The potential commercial interest of the discovery is being ascertained through more data gathering and analysis, the company said in a statement.
Jaiprakash Associates (up 2.51% to Rs 231, off days high of Rs 240.95), HDFC (up 3.82% to Rs 2450, off days high of Rs 2524.70) and Bharti Airtel (up 1.32% to Rs 815.25, off days high of Rs 839), though up pared early gains.
Banking shares gained on fresh buying. Indias largest private sector bank in terms of net profit ICICI Bank advanced 3.93% to Rs 786.25. The stock came off session's high of Rs 815. The banks American Depository Receipt (ADR) jumped 8% yesterday, 1 April 2008, on the New York Stock Exchange (NYSE).
Other banking shares, State Bank of India (up 1.51% to Rs 1649), and HDFC Bank (up 0.45% to Rs 1314), also logged gains
Indias top tractor marker in terms of sales, Mahindra & Mahindra (M&M) rose 2.61% to Rs 667.25 after it said on Tuesday, 1 April 2008, its vehicle sales rose 20% to 24,682 units in March 2008 over March 2007. M&Ms sales rose 30% to 2,31,355 vehicles, in the financial year to March 2008 over the financial year to March 2007.
Indias top truck marker in terms of sales, Tata Motors rose 1.51% to Rs 636.90 after it said on Tuesday, its vehicle sales 6% to 66,495 units in March 2008 over March 2007. Sales of commercial vehicles rose 17% to 35,993 units and sales of cars and utility vehicles fell 4% to 24,737. Exports fell 9% to 5,765 vehicles
Indias largest private sector power utility company in terms of sales, Reliance Energy slumped 5.15% to Rs 1222 on 9.22 lakh shares. It was the top loser from Sensex pack.
Steel stocks declined on reports that the government has asked steel makers to cut prices by 10% to 20%, failing which it may take a host of fiscal measures to lower prices. Tata Steel, the countrys largest private sector in terms of sales, declined 3.50% to Rs 644
Other steel manufacturers JSW Steel (down 4.93% to Rs 785), Steel Authority of India (down 4.13% to Rs 167.30), and Jindal Steel & Power (down 2.36% to Rs 1965), declined. As per reports, the government has asked steel makers to cut prices by 10% to 20%, failing which it may take a host of fiscal measures to lower prices.
Bharat Heavy Electricals (down 2% to Rs 1854), and ITC (down 2.18% to Rs 206.55), edged lower from Sensex pack.
India's biggest engineering & construction firm by revenue L&T lost 1.1% to Rs 2861.25. The stock came off session's high of Rs 3069.90
GSS America Systems was the top traded counter on BSE with turnover of Rs 344.18 crore followed by Reliance Industries (Rs 318.62 crore), Reliance Capital (Rs 277.80 crore), Essar Oil (Rs 209.51 crore), and Reliance Petroleum (Rs 207.35 crore), in that order
Indiabulls Securities topped volumes chart clocking volumes of 1.50 crore shares followed by Reliance Petroleum (1.22 crore shares), Kashyap Technologies (1.10 crore shares), Reliance Natural Resources (1.02 crore shares) and Essar Oil (95.50 lakh shares), in that order.
Indiabulls Securities, which was spun off from Indiabulls Financial Services in January, settled at Rs 99.05 on BSE, as against base price of Rs 380, on its debut today. The stock hit a high and low of Rs 300 and Rs 96.20 respectively during the day. Indiabulls Financial Services, had allotted one share of Indiabulls Securities for every share held.
Among the side counters, Global Vectra Helicorp (up 19.97% to Rs 78.10), Classic Diamonds (up 20% to Rs 75.75), and Haldyn Glass Gujarat (up 20% to Rs 78.05), surged.
GSS America Systems (down 20% to Rs 623.10), Bosch Chasiss Systems (down 10% to Rs 559.75), ETC Networks (down 11.95% to Rs 261.95), and (down 9.94% to Rs 41.70), slipped
Cement shares gained on reports that they have raised prices in the range of 3% to 4% across the country. Ultratech Cement (up 5.53% to Rs 804), India Cements (up 2.05% to Rs 189.25), Birla Corporation (up 0.13% to Rs 198.50), ACC (up 0.89% to Rs 833.10) and Deccan Cement (up 1.61% to Rs 259) edged higher.
Prices were increased because of the rise in production cost. The cement price is now Rs 258 per 50 kilogram bag in Mumbai.
Steel Strips Wheels gained 3.62% to Rs 174.70 after the company said it has bagged an export order worth Rs 110 crore from Renault, France for supply of one million steel wheel rims over five years.
Gujarat Gas Company dipped 2.97% to Rs 227.30. The company said it has signed a contract for supply of 2.13 million cubic metres of gas per day with GAIL (India). The company made this announcement after trading hours on Tuesday, 1 April 2008.
BEML gained 1.45% to Rs 989 on achieving a provisional turnover of Rs 3005 crore with 15.5% growth and profit before tax of Rs 350 crore with 11% growth in the financial year 2007-08 over 2006-07. The company made this announcement.

Source: CapitalMarket

Intraday Calls for 2nd April

Indian Stock Markets will open with Gap Up and remains strong for the day today. A smart and strong rally expected of about 4-5%.

Today's Intraday Picks:

UNITECH

GMR INFRA
BHEL

RCOM

BAJAJ HIND

For Levels and Targets download the file by CLICK HERE.

Others: Tata Steel, Lanco Infra, HDIL.

Short Term Delivery Buy PRISM CEMENT (44) Target 60+

Good Luck

Investment Idea: Praj Industries

Praj Industries offers innovative solutions to significantly add value in bio-ethanol, bio-diesel and brewery plants and related waste water treatment systems. It delivers know-how, license, engineering design, plant & equipment, project management, commissioning and customer care and turnkey projects.

The company has recently formed a 54 : 46 JV company in Brazil with a Brazilian Engineering, Procurement Construction & Manufacturing Company, Jaragna Equipamentos Industriais Ltda. which would provide Praj an entry into the fastest growing ethanol market in the world. This JV company will supply end to end solutions for sugarcane juice to ethanol production.

The company has posted very good results for the year ended 31st March 07, wherein, its total income was at Rs.616 crores with PBT of Rs.110.36 crores and PAT of Rs.86,53 crores, on an equity of Rs.16.78 crores. In July 07, due to 1 : 1 bonus issue and preferential issue, paid-up equity of the company increased to Rs.36.58 crores.

For 9 months ending 31-12-2007, the total income of the company was at Rs.525 crores with PBT of Rs.107 crores and PAT of Rs.94.88 crores, resulting in an EPS of Rs.5.25 for the period. The bottomline of the company for 9 month period is higher than whole of FY 07, inspite of topline being lower by Rs.92 crores for the period, over FY 07.

The present equity of the company is Rs.36.88 crores with face value of Rs.2. Of this, as at 31-12-2007, promoters stake is 21.35% while 25% is held by Mutual Funds, Banks and FIIs and about 54% by public.The prominent shareholders of the company are Tata Sons holding 7.34% stake who have acquired this stake from the promoters in September 07. Vinod Khosla, a PE investor holds 6.75% while Rakesh Jhunjhunwala holds about 7.90%. Rakesh Jhunjhunwala though resigned from the Board of the company replacing him with his nominee, the company has Mr. Kishor Chaukar on the Board as nominee of Tata Sons.

The company has developed technology for ethanol production based on sugarcane, sweet sorghum, corn and of bio-diesel based on Jathropha. Bio-fuel is being explored all over the world, due to soaring crude prices now crossed $ 100 per barrel. The company is hopeful of touching Rs.1,000 crores as its topline for FY 09.

FY 08 is likely to result in a PAT of 142 crores, resulting in an EPS of Rs.7.80 with topline of Rs.780 crores. FY 09 is likely to see a topline of Rs.1,000 crores with PAT of close to Rs.200 crores, resulting in an EPS of Rs.11.

Share is now ruling at Rs.133 which discounts its FY 09 earnings by about 12 times which is quite low when compared with other engineering or capital goods manufacturers.

Share had a 52 week high of Rs.273 which has now corrected by over 50% in this carnage, During FY 07 the company paid 135% dividend while for FY 08 an interim dividend of 99% has already been paid.

Share at Rs.133 makes a safe and excellent bet for those investors who have 8 – 10 months view on the stock, which has potential to touch Rs.200 mark. The sector of the company has tremendous growth potential for the next 4 – 5 years. A safe bet at Rs.133.

Source: sptulsian.com

Stock Ideas

Investment Advisor SP Tulsian is of the view that one cna buy Cairn India between Rs 210-215.
Tulsian told CNBC-TV18, "If one really want to take operational call on Cairn India then this is a good stock to buy at these levels though it has risen now at about Rs 230-240. But if one waits for the share to settle at around Rs 210-215, anything between Rs 210-215 really makes the stock as a good buy."

Investment Advisor SP Tulsian is of the view that one can buy Mundra Port at these levels.
Tulsian told CNBC-TV18, "Some of the infrastructure stocks have really corrected a lot and if one really takes a call on them they have a very bright future ahead including Mundra Port. I think this stock has corrected from a top of about Rs 1300 and the public issue was made at Rs 440 and now it is ruling at around Rs 600. When it fell to around Rs 500 or maybe Rs 520 since then the renewed interest has come into the counter. This is a great stock to buy at these levels provided one has a call for about 8-10 months or maybe 10-12 months horizon. From hereon the downside seems to be very limited. So mainly on these reasons and these factors this stock seems a good buy at these levels."

Stock Idea: Crest Animation Studios Limited

Earlier known as Crest Communciations, Crest Animation Studios Limited (Crest), is one of India’s leading animation studios. When it had gone public, there was immense investor following for the stock as it was promoted by Mr.Shyam Ramanna, the son of eminent nuclear scientist Dr.Raja Ramanna, who was also the Chairman of the company, later passed away in 2004.

The company presented encouraging results for the third quarter ended 31st December 2007. The net revenue of the company, on a YoY, rose by a whopping 83% at Rs.22.75 crore. The company, during Q3, finalized & executed all relevant documents relating to the production of its 1st feature film titled Alpha & Omega & accordingly has recognized Rs.20.78 crore as revenue. It also delivered animation work for the existing TV contracts and such revenues for the quarter amounted to Rs.1.77 crore.

Expenses almost doubled from Rs.9.19 crore to Rs.18.99 crore. Its EBIDTA was up 38% at Rs.4.62 crore. PBT rose more than twice at Rs.1.09 crore and PAT was also up more than two times at Rs.1.06 crore.

OPM is at 20.3% while NPM is quite paltry at 4.66%. The margins are indeed quite thin and this is one thing which will keep the bottomlines subdued despite higher revenues. Unless the company manages to reduce its outgo that eats away any increase in sales, the bottomlines will continue to remain an issue. Also it has been that the third quarter is always the best for the company. Its earnings are at their best in the third quarter and this December too, the company has managed to keep on to this trend. Blame it on the cyclical nature of the business? Payments always come in during the last quarter?

Currently under production is Crest's first feature film in partnership with Hollywood's Lions Gate Entertainment, the first of a three-movie deal for worldwide theatrical distribution. Its working title is 'Alpha and Omega' and is based on a love story between an alpha wolf and an omega wolf, set on a backdrop of migration of wolves. This transaction is significant in that it enables the company to enhance its reputation as a recognized producer and co-owner of theatrical animation films and to expand its library of intellectual property rights.

By 2010, the company is looking at delivering at least one feature film every year. DE Shaw has a 14.99% stake in the company, acquired in 2006 for $40 million. The core promoters holding is just 15.89%.

Currently quoted at Rs.60, stay invested only if you have a long term goal in mind.

Markets Today

As some arbitrageurs and jobbers stayed away from the market to protest change in tax treatment of the Securities Transaction Tax (STT) that came into force from today, low volumes saw share prices swing wildly on the first day of the new financial year FY 2009 (year ending March 2009). After opening on a firm note, market lost ground by early afternoon trade only to recover in mid-afternoon, led by recovery in index heavyweights Reliance Industries (RIL) and ICICI Bank. The market breadth was strong. 16 shares from the 30-member Sensex pack advanced.
European markets, which opened after Indian market extended gains after Swiss bank UBS AG unveiled a fresh attempt to reverse its fortunes and its writedowns came in along expected lines. UBS posted $19 billion in additional writedowns and said it was hiving off ailing portions of the bank into a separate unit. Asian markets, which opened before Indian market were mixed. US markets ended higher yesterday, 31 March 2008.
The 30-share BSE Sensex was down 17.82 points or 0.11% at 15,626.62. Sensex lost 342.59 points at days low of 15,301.85 touched in early afternoon trade. Sensex rose 189.61 points at days high of 15,834.05 hit in early trade. Sensex oscillated in a band of 532.20 points in volatile trade.
The broader based S&P CNX Nifty rose 5.05 points or 0.11% at 4,739.55. Nifty April 2008 futures were at 4775, a premium of 35.45 points as compared to spot closing
The market breadth was strong: On BSE 1,722 shares advanced as compared to 924 that declined. 51 shares remained unchanged.
The BSE Mid-Cap index was down 0.50% to 6,395.42 and the BSE Small-Cap index rose 0.31% to 7,865.90, as per provisional closing.
The total turnover slipped to Rs 4697 crore on BSE, as compared to Rs 5,941.63crore yesterday, 31 March 2008, probably due to absence of arbitrageurs.
Total turnover in NSEs futures & options segment amounted to Rs 47200.87 crore as compared to Rs 49087.03 crore yesterday, 31 March 2008.
The change in tax treatment of securities transaction tax (STT) is seen raising cost for arbitrageurs, which in turn may have resulted in fall in arbitrage volumes. STT will now be treated like any other deductible expenditure against business income of the assesses. This is against the earlier practice of 100% rebate for STT paid against the tax liability for the year.
Most Sectoral indices on BSE slipped. The BSE Consumer Durables index (up 0.10% to 3,887.15), the BSE FMCG index (up 2.06% at 2,337.27), and the BSE Oil & Gas index (up 3.36% to 10,353.72), outperformed the Sensex
However, the BSE IT index (down 0.20% to 3,540.59), the BSE Auto (down 1.22% at 4,469.60), the BSE Bankex (down 0.96% at 7,643.55), the BSE Realty index (down 1.17% at 7,466.48), the BSE Health Care index (down 0.44% at 3,831.32), the BSE TecK index (down 0.24% to 3,016.77), the BSE Power (down 1.16% to 3,152.66), the BSE Capital Goods index (down 3.21% at 13,559.93), the BSE Metal index (down 1.49% to 13,813.76), and the BSE PSU index (down 0.42% to 7,395.52), slipped.
Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries advanced 2.97% to Rs 2331.80 on 10.48 lakh shares. The stock moved in a range of Rs 2245.50 and Rs 2375 during the day.
Indias largest FMCG company in terms of net sales. Hindustan Unilever jumped 4.39% to Rs 238.75 on 2.49 lakh shares. It was the top gainer from Sensex pack.
Reliance Energy, the countrys largest private sector power utility company in terms of net profit surged 3.11% to Rs 1290. The stock surged the most in Sensex pack, by 152%, in the financial year ended 31 March 2008. The company has bought back 9.51 lakh equity shares aggregating Rs 122.40 crore since the start of the buyback offer on Tuesday, 25 March 2008,
Indias largest software services exporter TCS advanced 3.16% to Rs 836.50 after it said on Monday, 31 March 2008, it had signed a five-year, multi-million dollar contract with auto components maker ArvinMeritor Inc. Financial details of the deal were not disclosed. The stock was the worst performer from Sensex pack, in the financial year ended 31 March 2008, declining 34%.
However other IT pivotals, Wirpo (down 3.60% to Rs 410), and Infosys (down 0.71% to Rs 1420), declined
North Indias largest cement maker by sales Ambuja Cements rose 0.29% to Rs 121.40 after it announced 16% rise in cement shipments to 1.72 million tonnes in March 2008 over March 2007.
ITC (up 2.25% to Rs 211), and Reliance Communications (up 2.90% to Rs 523.05), edged higher from Sensex pack.
Shares from capital goods witnessed a sell-off. Bharat Heavy Electricals, the countrys largest state run engineering company in terms of order book position, was down 8% to Rs 1892. It was the top loser from Sensex pack. On Monday, 31 March 2008, the company secured Rs 550-crore export order for supply of boilers from Koniambo Nickel SAS, an overseas joint venture of Switzerland-based mining group Xstrata PLC and a local company in New Caledonian.
Larsen & Toubro, the countrys largest private sector engineering company in terms of order book position, lost 4.80% to Rs 2880, after hitting low of Rs 2845. On Monday, 31 March 2008, the company bagged Rs 576 crore order from Hindustan Petroleum Corporation for 2 lakh tonne per annum lube oil base stock plant consisting of raffinate hydrotreating unit, mobil selective dewaxing unit and hydro finishing unit.
Tata Steel (down 3.77% to Rs 667), DLF (down 3.60% to Rs 623.20), and Mahindra & Mahindra (down 6.44% to Rs 650.85), slipped from Sensex pack.
Banking shares staged sharp recovery from lower levels. ICICI Bank (down 1.83% to Rs 756, after hitting a low of Rs 732) and HDFC Bank (down 1.13% to Rs 1305.10, after touching a low of Rs 1271), though down were well off their lower levels. Indias largest bank in terms of market capitalisation State Bank of India rose 1.45% to Rs 1622.
Indias largest car maker by sales Maruti Suzuki India declined 1.51% to Rs 817 after its sales declined 2% to 70,296 vehicles in March 2008 over March 2007. Maruti domestic sales remained flat at 64,421 units in March 2008 over March 2007. Its exports fell 19 %to 5,875 units in March 2008 over March 2007.
GSS America Systems was the top traded counter on BSE with turnover of Rs 468.38 crore. The stock saw high volatility today, swinging in a range of Rs 740.60 and Rs 865.
Reliance Capital (Rs 300.67 crore), Reliance Industries (Rs 243 crore), and Reliance Petroleum (Rs 211.09 crore), were the other turnover toppers on BSE in that order.
Unitech was the fifth top traded counter on BSE with turnover of Rs 157.32 crore boosted by a block deal of 40.09 lakh shares struck on the counter on BSE at Rs 277.90 per share at 10:16 IST. The stock fell 1% to Rs 273.40 on high volumes of 56.80 lakh shares.
Reliance Petroleum topped volumes charts on BSE clocking volumes of 1.30 crore shares followed by Reliance Natural Resources (1.22 crore shares), Ispat Industries (89.42 lakh shares), Bellary Steel (89.54 lakh shares), and Essar Oil (69.54 lakh shares), in that order
Among the side counters, Atul Auto (up 20% to Rs 62.45), Rajvir Industries (up 19.97% to Rs 137.90), Technocraft Industries (up 19.96% to Rs 62.50), and Indowind Energy (up 19.94% to Rs 81.80), surged.
However Bosch Chasiss Systems (down 10% to Rs 621.90), Setco Automotive (down 13.06% to Rs 169.10), and Panama Petrochemicals (down 9.92% to Rs 124), slipped
Reliance Petroleum surged 6.75% to Rs 166.80 after the company said has executed a facility agreement to raise $500 million for the refinery project at Jamnagar, Gujarat.
Punj Lloyd slipped 0.53% to Rs 905.60 despite winning an order worth $68 million from Tecnimont S.p.A, Italy for borouge 2 polyolefins project of Abu Dhabi Polymers Company, UAE. The company made this announcement during trading hours on Monday, 31 March 2008.
Dr Reddy's Laboratories gained 1.02

Source: Capital Market

Intraday Calls for 01st April

Indian Stock Market may open positive but remains volatile as inflation fear is there in the markets.

Today's Intraday Picks:

ESSAR OIL

VOLTAS

IRB INFRA

ALSTOM PROJECTS

DISH TV

For Levels and Targets download the file by CLICK HERE.

Also keep watch on NTPC, IOC & Lanco Infra.

Good Luck