Markets Today

Markets Snapshot
Markets slip on back of high inflation & crude prices.
Markets started slipping in the noon session; Closed at the lowest point of the day
Negative cues from Asia & Europe
Sensex ends down 343 pts at 16737; NIfty down 99 pts at 4982
CNX Midcap Index down 2.5%, Nifty Junior down 3.4%, BSE Small-cap Index down 2.1%
BSE FMCG only index which closed in the green
BSE Oil&Gas down 4.7%, witness major selling; Essar Oil Down 9.6%, Reliance Ind down 5%; Chennai Petro Down 7.3%
BSE Realty down 2.95%; Unitech down 4.5% & HDIL down 7.7%Banks sees selling across the board
Bank Nifty down 2.9%; Pnb down 4.8%, Yes Bank down 3.8%, Icici Bank down 2.8%
Kotak Bank down 5.7% ((sold off post results))
Index losers; DR Reddys , ACC , REL all down over 4% , Hindalco , HDFC Bank , TCS , Suzlon down over 3%
Index gainers; ITC up 1.6%, Bharti up 1.5% & Wipro up 0.86%
Non Index Losers: Rel Cap down 7.1%, RNRL down 5.7%, Jaiprakash Asso down 6.4%, Bombay Dyeing down 7.9%, Nagarjuna fert down 7.1%
NSE Advanve Decline at 1:5
Total market turnover at Rs 55403 cr VsRs 47583 cr on Thursday
Total NSE F&O turnover at Rs 34951 Vs Rs 28944 cr on Thursday

Markets This Week
Sensex down 5%, Nifty down 4.8%
CNX Midcap Index down 4.6%, BSE Small Cap down 3.8%
Nifty Losers - REL down 12%, BHEL down 10%, L&T, SAIL down 9% each
BSE Realty Index down 9.6%, DLF down 13%, Unitech, GMR Infra down 10%
BSE Bank Index down 7%; SBI down 8%, ICICI Bk down 7%, HDFC Bank down 6%
BSE Oil & Gas Index down 5.6%; HPCL down 8%, BPCL down 7.6%

Intraday Trading Calls for 9th May

Market may open nagetive but recovery expected later and may close positive with good gains.

Today's Intraday Trading Calls:

ICICI BANK
MOSER BAER
HDIL
VIDEOCON INDUSTRIES
INDIA CEMENT
J KUMAR INFRA (JKIL)

For Levels and Targets download the file by CLICK HERE.

Good Luck

Stock Ideas: Sintex India

Emkay Research has maintained its buy rating on Sintex India with a price target of Rs 860 in its May 7, 2008 research report. "Sintex Industries have declared their Q4 FY08 results which were in line with our expectations. The top line increased by 143% to Rs 9284.5 millions resulting in an increase in EBIDTA by 105% to Rs 1758 millions. The top line growth was in line with our expectations and it is expected to grow at a rapid pace because of the company’s continued focus on the plastic business. The Management has also maintained that the textile business segment will grow at a CAGR of 15% over the next 2 years."

"We expect the company's top line and bottom line to grow at a CAGR of 24.2 % and 26.3% in FY09 & FY10 respectively. We have maintained our earnings estimates for FY09E and FY10E respectively. On the basis of FY09E and FY10E EPS of Rs 20.5 and Rs 36.8 the stock trades at a P/E multiple of 23.6x and 13.1x respectively. We maintain our rating of BUY and maintain our target price of Rs 860," says Emkay's research report.

Markets Today

It was a lacklustre day for the markets, volumes were low. Technology, private banks, FMCG and capital goods stocks were biggest culprits, dragged the Sensex and Nifty lower by more than 1%. The Sensex still held above 17000 mark and the Nifty above 5000. Market breadth remained negative, nearly 1:2. Midcap and small cap stocks also closed in the red. On the global front, Asian markets finished lower barring Shanghai. European markets were trading lower; Nymex Crude was trading USD 123.67 per barrel at the time of writing closing market report.
The Sensex touched an intraday high 17,212.61 and low of 17,038.03, before closing the day at 17,080.65, down by 1.49% or 258.66 points. The Nifty Fifty ended at 5081.70, down 1.05% or 53.8 points which hit high/low of 5143.05 and 5062.45, respectively.
The CNX Midcap fell 0.94% at 6959.15. The BSE Midcap and Small Cap indices ended at 7,153.43 and 8,689.04, fell by 0.67% and 0.44%, respectively.
Market breadth was in negative, about 1211 shares have advanced, 1698 shares declined, and 177 shares remained unchanged.
Major losers were ITC, Satyam, L&T and, Infosys while gainers - Tata Comm, Tata Steel, Idea Cellular, Bharti Airtel, and ACC.
Banking stocks were draggers especially private banks. The BSE Bankex lost 2.9% or 261 points at 8,755.48 as selling pressure seen in Kotak Mahindra Bank, Bank of Baroda, Bank of India, Axis Bank, Union Bank, Yes Bank and ICICI Bank.
Technology stocks like Mphasis, Satyam, Infosys, TCS, Wipro and Tech Mahindra have crashed despite rupee depreciation, which hit 41.79/$. Major reason was the first quarter numbers from Cognizant, which given the Q2 guidance below market expectations. Market expected 8-9% while the company guided only 5.7%. The BSE IT Index fell 2.69% or 119 points at 4,294.46.
FMCG stocks including ITC, United Breweries, P and G, Dabur India, Marico and Bata India also crushed under selling pressure. The BSE FMCG Index was down 2.6% to close at 2,445.12.
The BSE Capital Goods Index finished at 13,375.19, down 1.95% as selling pressure seen in Jyoti Structure, Rel Ind Infra, Kirloskar Bros, Gammon India, Larsen, Kirloskar Oil and BHEL.
Power stocks haven't charged up, BSE Power Index lost 0.93% at 3,264.00. Power stocks like Reliance Petro, Power Grid Corp, Crompton Greaves, Tata Power, Suzlon Energy, CESC and NTPC closed in red.
Realty stocks like Mahindra Life, Anant Raj Ind, Ansal Properties, Unitech, DLF and Omaxe collapsed, which pulled the BSE Realty Index down by 0.94% to close at 8,130.70.
The BSE Oil & Gas Index fell 0.81% at 11,628.45 due to selling in RNRL, GAIL, Petronet LNG, IOC, ONGC, Essar Oil and Reliance.
Pharma stocks like Panacea Biotech, Glenmark, Ipca Labs, Apollo Hospital, Opto Circuits and Cipla also lost the sheen. The BSE Healthcare Index dropped 0.40% to settle at 4,221.29. The BSE Auto Index slid 0.42% at 4,766.96 as auto stocks like Punj Tractors, Ashok Leyland, Escorts, Hind Motors, TVS Motor, Tata Motors, Hero Honda and Maruti Suzuki slipped.
Reliance Industries, Reliance Power, Reliance Capital, Aishwarya Telecom, Bharti Airtel and Cairn India were most active counters.
Total market turnover for the day stood at Rs 47583.62 crore including Rs 12692.39 crore NSE cash, Rs 28943.79 crore from NSE F&O and the balance Rs 5947.44 crore from BSE cash.

Source: moneycontrol.com

Intraday Trading Calls for 8th May

Markets may open nagetive as US markets closed lower and all asian markets trading lower. But Indian Stock Market can recovers from lower levels and again a Flat closing expected.

Today's Trading Calls:

BAJAJ HINDUSTAN
WELSPUN GUJARAT
CAIRN INDIA
MERCATOR LINES
S. KUMARS
INDIAN BANK

For Levels and Targets download the file by CLICK HERE.

Good Luck

Stock Ideas: 3i Infotech, Allahabad Bank, Bank of India

Sharekhan has maintained its buy rating on 3i Infotech with price target of Rs 180 in its May 2, 2008 research report. "3i Infotech's consolidated revenues grew by 10.3% quarter on quarter (qoq) and 66.5% year on year (yoy) to Rs 349.9 crore in Q4FY2008. While, the organic revenue growth was 7.1% sequentially, acquisitions contributed 3.2% to the sequential growth in the top line during the quarter. The operating profit margin (OPM) was flat at 24.8% in Q4FY2008. The operating profit grew 9.9% qoq to Rs 86.7 crore during the quarter. The company's net profit grew by 0.6% to Rs48.8 crore, which was below our expectation of Rs 53.7 crore."
"To fine tune our earning estimates, we have revised up the earning estimates for FY2009 by 3.4% and have introduced FY2010 earning estimates. Our earning estimates does not incorporate Regulus acquisition since the regulatory approval for the same is yet to be obtained. At the current market price, the stock is trading at 9.8x FY2009 and 8.4x FY2010 earning estimates. We maintain our Buy recommendation on the stock with price target of Rs 180, says Sharekhan's research report.
Allahabad Bank:

One of the most profitable banks and oldest banks of India, it has once again not disappointed. As usual, the financial performance for the year ended 31st March 2007 has been very good.

On a sequential basis, its total income rose by 36% of which the biggest contribution came from interest earned, which constituted 88% of the total income earned. Operating profit went up to Rs.1,479.51 crore, up by 34.51%. Net profit shot up by 29.94% to Rs. 974.74 crore. EPS increased to Rs.21.82 from Rs.16.79 during last year. Book Value per share improved to Rs.117.47 from Rs.100.22 during this period. YoY, the business of the Bank was at Rs.1,21,928 crore, up 20.18%. Total Deposits of the Bank increased to Rs.71,616 crore, recording a rise of 20.27% during the period. Market Share in aggregate deposits and gross advances stood at 2.22% and 2.14% respectively as at March, 2008. Capital Adequacy Ratio stood at 12.04% computed as per Basel II prescription of RBI. As per Basel I method of calculation, it is 12.23%.

During the year, Gross NPA declined to 2.00% as on 31.3.2008 from 2.61% as on 31.3.2007. Net NPA ratio decreased from 1.07% as at 31.3.2007 to 0.80% as on 31.3.2008.

The Bank has 2154 branches (excluding 1 Foreign Branch) as on 31.3.2008 (2060 as on 31.3.2007) of which 983 (46%) are in Rural, 405 (19%) in Semi-Urban, 452 (20%) in Urban and 314 (15%) in Metropolitan areas. The bank opened its first overseas branch in the busy economic centre of Hong Kong and has its representative office in Shenzhen, China. It has a subsidiary ALLBank Finance. The Bank plans to buy stake in a small bank in Africa to establish presence in the growing market.
Best to stay invested and one can even consider buying into this very profitable bank for long term gains.

Bank of India:

The Bank of India has posted encouraging results for the year ended 31st March 2008.

YoY, the total income of the bank rose 35% at Rs.14472.15 crore. PBT rose by a very healthy 54% at Rs.3701.21 crore. Net profit rose by a whopping 79% at Rs.2009.40 crore. On an equity of Rs.525.91 crore, it posted an EPS of Rs.40.83 as against Rs.23.04 in FY07. For the year 2007-08, cost of funds increased to 5.07% and yield on advances touched 9.34%. Its Capital Adequacy Ratio was at 12.95% as against 11.78% in FY07.

The Government of India has a 64.47% stake in the bank, which has come down marginally from 69.47% in FY07. This is mainly because the bank, during the quarter ended March 31, 2008 had issued and allotted 3,77,72,600 fresh equity shares of the face value of Rs.10 each at a premium of Rs.350 per share through Qualified Institutions Placements.

The Bank had marked-to-market losses on account of currency derivatives transactions of about Rs.125 crore. The bank has made a provision of $5 million in Q4 for its exposure to overseas credit derivatives instruments. It has 34 customers who trade regularly in currency derivatives and has transacted some 74 deals. The Bank does not see any default on these accounts as these 34 are corporate customers. The bank is now concentrating on increasing its presence overseas and in this fiscal, is planning to acquire a bank either in Africa or West Asia.

Currently quoted at Rs.350, hold on.

Source: Internet

Markets Today

The key indices ended in the negative territory. Weakness in Asian markets and a surge in crude oil prices spoiled the investor sentiments today. IT and oil & gas stocks were the front-runners. Capital goods stocks and shares of PSU firms suffered the most.
European markets, which open after Indian markets, were trading higher. In Europe, key indices in UK, France and Germany were up 0.64% to 0.88%.
Asian markets were trading lower today, 7 May 2008. Key indices in China, Hong Kong, Japan, Singapore and South Korea were down by 0.27% to 4.13%. However, Taiwans Taiwan Weighted Index was up 0.78%.
US crude was steady at $121.79 a barrel, just off a record high at $122.73 in New York with prices doubling in the past year. Foreign brokerage house Goldman Sachs, which had predicted that oil would hit $100 a barrel now forecasts a potential spike to $200 a barrel.
As per provisional closing, the 30-share BSE Sensex fell 31.86 points or 0.18% at 17,341.15. The index lost 143.03 points at days low of 17,229.98, hit in the afternoon trade. Sensex gained 40.80 points at days high of 17,413.81, hit in the early afternooon.
The broader based S&P CNX Nifty was down 8.15 points or 0.16% at 5136.50.
The market breadth was weak on BSE with 1170 shares advancing as compared to 1522 stocks that declined. 69 stocks remained unchanged.
The BSE Mid-Cap index fell 0.27% to 7,210.89 and BSE Small-Cap index rose 0.26% to 8,726.51.
Top Sensex gainers were, TCS (up 2.63% at Rs 963.85), Mahindra & Mahindra (up 1.73% at Rs 675.50), Tata Steel (up 1.64% at Rs 829.80), Infosys Technologies (up 1.30% at Rs 1843), Hindustan Unilever (up 1.13% at Rs 251) and Jaiprakash Associates (up 1.10% at Rs 274.90).
Top Sensex losers were, Bharat Heavy Electricals (down 4.49% at Rs 4.49% at Rs 1777), Bharti Airtel (down 3.39% at Rs 817.90), DLF (down 2.39% at Rs 652), Larsen & Toubro (down 2.32% at Rs 2981.55), Satyam Computer (down 1.82% at Rs 489) and Ranbaxy Laboratories (down 1.64% at Rs 467.15).
Plastic materials maker Uflex jumped 1.60% to Rs 149.55 after posting 60.6% surge in net profit to Rs 24.84 crore on 13.9% rise in net sales to Rs 362.42 crore in Q4 March 2008 over Q4 March 2007.
Information technology firm Mastek soared 8.58% to Rs 369 on reports that the company is betting on transport and healthcare sectors for fuelling its future revenue.
Marine transportation services provider Mercator Lines vaulted 3.91% to Rs 107.75 after its wholly owned subsidiary Mercator Lines (Singapore) reported three-fold jump in net profit to $52.2 million in the year ended March 2008 over the year ended March 2007.
Ethanol maker Dollex Industries was locked at upper limit of 5% at Rs 43.45 on setting 20 May 2008 as the record date for a 2-for-1 stock split.
Apparel maker and exporter Gokaldas Exports surged 14.30% at Rs 237 on reports that major stakeholder Blackstone Group was considering delisting the company this year.
Film maker Pritish Nandy Communications was locked at upper limit of 10% at Rs 64.20 after it said on Tuesday, 6 May 2008 it has signed a three-film deal with US-based Sony Pictures.
Ethanol maker Praj Industries gained 1.69% to Rs 198.60 after the company reported 77.44% surge in net profit to Rs 153.54 crore on 20.10% increase in total income to Rs 740.31 crore in the year ended March 2008 over the year ended March 2007.
US markets rose to a four month high yesterday, 6 May 2008 as Financial and energy shares sparked the positive moves on the US indices. US largest mortgage financing company Fannie Mae surged after its officials said they were cautiously optimistic that the worst of the credit crisis had passed even after posting a $2.5 billion quarterly loss. The Dow Jones industrial average rose 51.29 points or 0.40% to 13,020.83. The Nasdaq Composite index rose 19.19 points, or 0.78%, to 2,483.31. The S&P 500 advanced 11 points to 1,418.
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