Markets Today

The key benchmark indices ended the volatile session with a loss of nearly one percent. Mixed global cues and imminent expiry of March 2008 derivative contracts kept the market volatile throughout the day.

Investors turned cautious after the previous day's 6.1% jump. Majority of the sectoral indices on BSE slipped into red. ICICI Bank was the top loser from the Sensex pack. The market breadth was positive.
As per provisional closing, the 30-share BSE Sensex was down 156.96 points or 0.97% at 16,060.53. The index lost 207.62 points at sessions low of 16,009.87 hit in afternoon trade. The index gained 92.39 points at the sessions high of 16,309.88, hit at the onset of the trading session.
The broader CNX S&P Nifty was down 58.3 points or 1.20% at 4819.20.
The March 2008 derivative contracts will expire on Thursday, 27 March 2008. As per reports, the marketwide rollover of derivative positions from March 2008 series to April 2008 series stood at 38%, while that of Nifty was 41% by Tuesday, 25 March 2008.
The BSE Mid-cap index was up 1.42% at 6,262.04. The BSE small-cap index was up 2.15% at 7,441.01.
The market breadth was positive. On BSE, 1710 stocks advanced, 1003 declined and 47 stocks were unchanged.
The BSE clocked a turnover of Rs 6100 crore as against Rs 6,880.05 crore on Tuesday, 25 March 2008.
Indias largest private sector bank by assets ICICI Bank fell 4.54% at Rs 840.
Indias largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) fell 0.62% to Rs 2300.
Indias top commercial vehicle maker by sales Tata Motors lost 0.71% to Rs 675.10. As per reports, US automaker Ford has agreed to sell its luxury brands Jaguar and Land Rover to India's Tata Motors for more than $2 billion. Ford, which signed the deal on Tuesday, 25 March 2008, plans to publicly announce the transaction in New York today, reports suggest.
Top Sensex gainers were, Tata Steel (up 3.99% at Rs 659.10), Housing Development Finance Corporation (up 3.18% at Rs 2672), ITC (up 2.30% at Rs 195.50), and Grasim Industries (up 0.53% at Rs 2701).
Top Sensex losers were, Hindustan Unilever (down 4.37% at Rs 234.25), Bharti Airtel (down 4.24% at Rs 799), Bharat heavy Electricals (down 3.51% at Rs 1942), Jaiprakash Associates (down 3.47% at Rs 225) and DLF (down 3.32% at Rs 656.10).
Shipping firm Mercator Lines rose 6.80% to Rs 76.15 after the company said its subsidiary Mercator Lines, Singapore has entered into negotiation with Refined Success for the time charter-out of Geastiniono TBN, a gearless panamax vessel.
Avantel Softech surged 9.41% to Rs 59 after the company said it has bagged an order worth Rs 8.25 crore from the Government of India for supply of satellite communication receiver terminals for Indian Navy
Engineering firm GEI Industrial Systems soared 10.85% to Rs 71.50 after the company said it has bagged an order worth Rs 30 crore from Essar Construction for supply of air cooled heat exchangers for a project in Gujarat.
Private sector lender Axis Bank vaulted 4.34% to Rs 826.50 after a two block deals totaling 45.46 lakh shares were struck on the counter at average price of Rs 799.89 per share on BSE.
Garment manufacturer SEL Manufacturing Company rose 5% to Rs 276.05 after the company said its board has approved raising upto $250 million through issue of foreign currency convertible bonds and global depository receipts.
Diesel engines maker Kirloskar Oil Engines jumped 5.95% to Rs 106 after three block deals aggregating 30.99 lakh shares were executed on the counter at an average price of Rs 100.03 per share in opening trade on BSE.
Edible oils maker K S Oils gained 0.39% to Rs 64.60 after the company said it has acquired a single palm plantation over a vast area spread across 50,000 acres of green land in Indonesia.
US markets ended on mixed note yesterday, 25 March 2008 after the consumer confidence fell sharply in March 2008 with the Consumer Confidence Index (CCI) slumping to a five-year low of 64.5. The Dow Jones industrial average declined 16.04 points, or 0.13%, to 12,532.60. The S&P added 3.11 points, or 0.23%, to 1,352.99 and the Nasdaq gained 14.30 points, or 0.61%, to 2,341.05.
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Market Whispers

Profit booking is advised in Edelweiss Capital at Rs.725 levels, as share has chances to fall below Rs.680 in the short term.

Oswal Chemicals may show a rise upto Rs.40 levels from its present levels of Rs.34. Short term buying is advised.

Adlabs Films may show a sharp rise from its present levels of Rs.600 to Rs.720 in the short run mainly as a value buy by the informed circles.

IFCI is a safe bet at Rs.44 levels and would show a rise of about Rs.6 in the next one week.

Bank of Rajasthan can be considered for buying at Rs.100 levels for a rise of about Rs.20 in the short run. The sharp has virtually no downside risk.

Saregama is a good stock to buy at Rs.113, as it has potential to rise to Rs.150 levels very soon.

Navbharat Ventures is a good buy at Rs.205 from short term trading view for a gain of Rs.20.

Prime Securities is expected to see some more selling from its present low of Rs.97 as rumours are abound about the company having tough times ahead.

NRB Bearing is poised for a smart upward rally from the current price of Rs.58.

Phoenix Mills has acquired a 25 acre land from GKW for Rs.320 crores and is also eyeing GKW's land in Kolkatta, Pune and Mumbai. With such a substantial increase expected in the land bank, Phoenix Mills can be accumulated for short to medium term gains.

Intraday Calls for 26th March

Market may open flat to positive and may see some profit booking at higher levels. Remains rangebound of about 1-2%.

Today's Intraday Picks:

NTPC
GAIL
NIIT Tech
Videocon Industries
Essar Oil
For levels and targets download the file by CLICK HERE

Buy Delivery LOK HOUSING (127) For Short Term Target 160+.

Good Luck

Investment Idea: Rain Commodities

Rain Commodities has recently restructured its business by bringing in Cement and Calcined Petroleum Coke (CPC) business under its fold. The cement capacity of 1.50 Million TPA would rise to 3.16 million TPA by June 08 while CPC capacity is 2.44 Million TPA and is the world’s largest producer of CPC.

The company acquired CII of USA on 19-07-07 manufacturing 1.84 Million TPA of CPC with manufacturing facilities in Illinois, Louisiana, Missisipi and West Virginia for a cash purchase price of US $ 595 Million.

CPC is a raw-material used in the production of aluminium and titanium dioxide and its raw-material is Green Petroleum Coke.

The merger of all the business took place from 1st April 07 and the company changed its accounting year to end on 31st December, every year. Hence, accounts for 9 months ended 31st December 07 were approved by the Board recently with business of CII, USA incorporated w.e.f. 19-07-07, from the date of its acquisition by the company.

For 9 months ending 31-12-07 the total income of the company was at Rs.1,634 crores with PBT of Rs.85.57 crores and PAT of Rs.77.56 crores on equity of Rs.32.10 crores. Dividend of 28% was declared for the period ended 31-12-07. This amounts to annualized dividend of 37.33%.

The results for 9 months above, includes gain of Rs.102.55 crores, being profit on sale of investment in GLC Carbon and financial and legal cost of Rs.134.18 crores for acquisition of Rain CII Carbon LLC. Hence, net extraordinary expenses of Rs.31.64 crores, brought down net profit to Rs.45.92 crores for the period.

The present equity of the company is Rs.32.10 crores, of which, 40% is held by the promoters while 8% by Mutual Funds and FIIs and 52% by Public. Of this 52%, Citicorp is holding 14.95% stake.

On 11-03-08, 35 lakh warrants were converted into 35 lakh shares at Rs.200 per share, issued to the promoters, due to which paid-up equity rose to Rs.35.60 crores.

Due to restructuring and other one time costs and gain, the results of period ended 31-12-07 are not truly reflecting the working of the company. On an annualized basis, 2.4 million tonne CPC can give a topline of Rs.2,400 crores, while 3.14 million cement can give a topline in excess of Rs.1,000 crores. This could result into a PAT in excess of Rs.350 crores, thus resulting into an EPS of close to Rs.100 per share.

Though new cement capacity of 1.50 million tonne would be operational from May 08, this would get reflected into the working for part of CY 08.

For the year ended 31-12-08, the company is most likely to post an EPS of close to Rs.80 and dividend is likely to exceed 50% for the year.

Share is presently ruling at Rs.155 which discounts its expected CY 08 earning by less than 2 times. CPC has huge demand by aluminium manufacturers in India and China, thus putting the company into an advantageous position.

Share has potential to give a return of 100% in the next 18 – 21 months, with virtually no risk of fall from the present levels. A safe and excellent bet at Rs.155 in this market.

By S P Tulsian

Investment Idea: S Kumars Nationwide

A very known brand, S Kumars is a name associated with mainly school uniforms and suitings. Over the years, it has metamorphosed into a big company with many bigger brands. It continues to sell uniforms, work-wear fabrics and blended suitings under S. Kumars and Belmonte brands; worsted suitings, wool-polyester blended suitings sold under Reid & Taylor brand; home textiles sold under Carmichael house brand and ready-to-wear garments sold under the brands Reid & Taylor and Belmonte brands. Incidentally, Belmonte is the “official” suits sponsorer of IPL’s Kolkatta team, of which Shahrukh Khan was as such the brand ambassador. So over the next few days, this S Kumars brand is expected to get more visibility.

Financially also S Kumars Nationwide (SKN), the company seems to be doing pretty well. For the third quarter ended 31st December 2007, YoY, the company’s net sales rose 44% and despite a 40% rise in total expenditure, EBIDTA was up 61% at Rs.101.36 crore. OPM improved on the back of high sales at 22.37% from 19.99% in Q3 FY07. The company’s interest outgo rose by a whopping 75% at Rs.25.28 crore and despite this, the company has managed to post very healthy PBT up 72% at Rs.64.68 crore and PAT also rose 72% at Rs.57.20 crore. NPM was up from 10.57% to 12.62%. On an equity of Rs.202.16 crore, the EPS, on a face value of Rs.10 per share, stands at Rs.2.83.

The consumer textiles contributes about 60% to the sales, Reid & Taylor contributes 25%. Over the next three years, consumer textiles contribution is expected to be about 31 - 32% to sales, Reid & Taylor is expected to remain the same, home textiles is expected to become an area of focus and is expected to contribute 17-18%. Infact the company has stated that in the domestic market, its ready-to-wear segment is going to be the fastest growing segment, but on the international front, high value cotton fabrics and home textiles are going to be the focus. The company is also planning to launch brands in the home textile segment, called Carmichael House any time now.

The company is now busy restructuring some of its businesses. It has demerged its retail business - Brandhouse Retails Ltd (BRL) into a separate company and shareholders of SKN would be eligible to receive the one equity share of BRL against five equity shares held in SKN. Record date for this is yet to be fixed. What this also means is that the company, at a future date is surely looking at an IPO of this retail company.

SKN also hived off its Reid & Taylor division, including the factory at Mysore, with all assets and liabilities relating to the division on slump sale basis and on as is where basis as a going concern to its subsidiary company - Reid & Taylor (India) Ltd.

In textiles, it is all about the brand name. S Kumars has a very good brand presence and in the coming days, its brands are expected to get more visibility, thanks to IPL. Currently quoted at Rs.82, stay invested and on declines, one can even consider investment.

Source: sptulsian.com

Markets Today

Intense buying in frontline stocks saw the Sensex breach 16,000 mark today. A buoyancy was visible across the global markets. The rally was triggered by JP Morgan raising Bear Stearns acquisition price by 5 times and US economic data that showed US new home sales had risen 3% in February 2008.
In the domestic front, all the sectoral indices on BSE ended higher. Banking, IT and realty stocks posted impressive gains. Mid-cap and small-cap stocks surged. The market breadth was strong.
In Europe, key indices in UK, France and Germany were up by 2.80% to 3.25%. Most of the Asian indices rallied today. Chinas Shanghai Composite, which declined more than 1% earlier, recovered sharply as the session progressed. It ended up 0.09%. Key benchmark indices in Hong Kong, Singapore, South Korea and Japan were up by 1.19% to 5.88%.
As per provisional closing, the 30-share BSE Sensex rose 967.07 points or 6.33% at 16,256.47. The index gained 972.98 points at sessions high of 16,262.38, hit at the fag end of the trade.
The broader CNX S&P Nifty was up 284.45 points or 6.17% at 4894.30.
The BSE Mid-Cap index was up 6.77% at 6,198.65. The BSE Small-Cap index was up 5.28% at 7,317.34.
The market breadth was strong. On BSE, 2075 stocks advanced, 637 declined and 50 stocks were unchanged.
The BSE clocked a turnover of Rs 6836 crore as against Rs 4,682.75 on Monday, 24 March 2008.
Indias largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 5.56% to Rs 2323.20. The firm is reportedly evaluating a plan to set up its third refinery at Jamnagar in an ambitious project to reach a total capacity of 100 million metric tonne per annum (mmtpa), the largest at a single location in the world.
India's largest private sector bank by assets ICICI Bank soared 9.38% to Rs 880. The bank has reportedly entered into a Rs 1,150-crore equity-cum-debt deal with Jaypee Infratech, a unit of Jaiprakash Associates. The bank has decided to pick up 1% stake in Jaypee Infratech for Rs 250 crore, reports added.
Indias largest engineering and construction firm by revenue Larsen & Toubro rose 3.94% to Rs 3053.
Top Sensex gainers were, Jaiprakash Associates (up 17.37% at Rs 235.10), DLF (up 14.86% at Rs 686.95), Reliance Energy (up 12.09% at Rs 1290), Housing Development Finance Corporation (up 9.90% at Rs 2620), Wipro (up 9.59% at Rs 437) and Infosys Technologies (up 9.45% at Rs 1490).
Chemicals maker GHCL surged 19.16% to Rs 88.95 after the company said it plans to spin off its home textiles and retail businesses into separate units as part of a restructuring plan.
Software firm Prithvi Information Solutions surged 10.40% to Rs 155.50 after the software services firm said its board will consider a share buyback proposal on 31 March 2008.
Steel pipes maker Welspun Gujarat Stahl Rohren jumped 13.49% to Rs 334 after the company said it has bagged pipeline orders worth Rs 1,075 crore for the supply of spiral pipes to Northern Africa.
Apparels maker Gokaldas Exports advanced 8.73% to Rs 185 on reports the company has secured an order to supply 2.50 lakh units of sportswear like jumpers, track-suits & vests for the thousands of athletes participating in Beijing Olympics.
Apparels firm Arvind Mills jumped 5.87% to Rs 37 after the company said Arvind Brands a division of the company has signed an agreement with Philips-Van Heusen Corporation for designing, distribution & retailing of IZOD brand in India.
Future Capital Holdings, the financial services arm of the Future Group, jumped 5.79% to Rs 578.50 after the company said its board has approved to invest upto Rs 47.75 crore in its subsidiary Future Finmart.
Cement maker Prism Cement soared 11.20% to Rs 42.70 after 14 lakh shares, or 0.47% of the company's equity, changed hands in a block deal on NSE at Rs 39.55 each.
Power equipment maker Jyoti Structures spurted 4.07% to Rs 162.30 after its secured an order worth Rs 160 crore for construction of transmission line and sub-stations in Uganda.
US markets rallied yesterday, 24 March 2008 on the back of a revised offer for Bear Strens. JP Morgan Chase revised its open offer for Bear Strearns to $10 per share from $2 per share. The Dow Jones industrial average surged 187.32 points, or 1.52%, to 12,548.64. The Standard & Poor's 500 index advanced 20.37 points, or 1.53%, to 1,349.88, and the Nasdaq Composite index added 68.64 points, or 3.04%, to 2,326.75.
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Intraday Calls for 25th March

Indian Stock Markets may open with GAP UP of about 2-3% and this time a strong rally expected. It may see some bounce in small and midcaps also.

Today's Intraday Picks:

SAIL
GMR INFRA
INDIABULLS
ICICIBANK
NEYVELI LIGNITE
HCC

For Levels and Targets download the file by CLICK HERE

Banking and Financial sector may see bounce in today's trade. (SBI, PNB, Kotak Bank, Indiainfoline)

Good Luck