Tuesday, June 10, 2008

Markets Today

It was another edgy session for the markets; bears again took a charge over bulls. But it is not bad session as it was around 2 pm. Selling in technology, banking, realty, FMCG, metal and some oil stocks, has put pressure on the markets. Weakness in Asian and European markets also fueled some negative sentiments across the board.
In the morning session, it had tried to pull back to some extent but as the day progressed, it has started slipping further and broken yesterday's intraday lows as well on the back of selling in Asian and European markets. The Nifty has broken 4400 mark and slipped over 130 points. The Sensex has touched 2008 low of 14,645.31 and breached August 2007 low of 14677 in an intraday trade. It had plunged over 420 points in the afternoon session.
But in the last half an hour of trade, markets have shown smart pullback though ended lower. The Nifty has recovered nearly 80 points and the Sensex 243 points from day's low.
The Sensex closed at 14,889.25, down 176.85 points or 1.17%. The Nifty has hit a new 2008 low of 4369.80 in an intraday trade before closing the day at 4449.80, down 1.14% or 51.15 points. Today's Nifty closing is its new closing for 2008.
BSE Bankex, Realty, Auto, Capital Goods, Small Cap and Nifty Junior slipped below August 2007 lows in an intraday trade.
Turnover traded by the markets stood at Rs 72981.82 crore. This includes Rs 13788.37 crore from NSE Cash segment, Rs 53893.3 crore from NSE F&O and the balance Rs 5300.15 crore from NSE F&O segment.
BSE Midcap and Small cap indices also recovered smartly from day's low and ended at 6,103.83 and 7,341.16, down over 1% each. Amongst midcap stocks, Essar Shipping, ABG Shipyard, Great Offshore, Ashapura Mine, GE Shipping, Gammon India, Akruti City, Rajesh Exports, Phoenix Mills, Ruchi Soya, Ansal Properties, HCC, Federal Bank and Brigade Enterp slipped over 5%. Small cap stocks like Unity Infraprojects, Indus Fila, Phillips Carbon, Hinduja Venture, Arihant Found, Ashiana Housing, Kemrock Indus and Nucleus Software were down over 7%.
Among biggest losers, HDFC was down 4.79%, ONGC 4.74%, HDFC Bank 4.46%, HCL Tech 4.34% and TCS 3.89% while among gainers, Ranbaxy Labs jumped by 6.53%, Cipla 2.13%, Suzlon Energy 2.9%, SAIL 2.47% and Reliance Industries 1.68%.
Market breadth has improved a lot in late trade. About 1082 shares have advanced while 1865 shares declined. 170 shares remained unchanged.
Technology stocks have beaten hard today. Tech Mahindra, Mphasis, TCS, HCL Tech, Infosys and Satyam were down around 2-7%. BSE IT Index fell 121.02 points or 2.75% to settle at 4,283.96.
Banking stocks witnessed heavy selling pressure on the rumours that RBI might consider CRR hike to curb rising inflation, which is likely to touch double digits mark in near term. Banking losers were Canara Bank, Federal Bank, HDFC Bank, Axis Bank, IOB, Yes Bank, Andhra Bank, ICICI Bank, HDFC and BOB. BSE Bankex plunged 2.43% or 170.99 points to close at 6,862.33.
Underperformance in realty stocks is unstoppable; Index cracked 121.61 points or 2.11% to settle at 5,630.61. It has hit an intraday low of 5,513.67. Akruti City, Phoenix Mills, Ansal Properties, Puravankara Proj, Anant Raj Ind, HDIL, Omaxe and Unitech were among major losers.
Telecom space was also under bear’s control. Tata Communication, Idea Cellular, Reliance Communication, MTNL and Bharti Airtel were losing counters in the telecom space.
FMCG Index tumbled 1.58% at 2,276.59, due to selling in United Spirits, GSK Consumer, ITC, Tata Tea, Marico and Nestle.
Metal stocks also lost shine. These include Sterlite Ind, NALCO, Jindal Steel, Jindal Saw, Hind Zinc and Tata Steel. Index fell 123.69 points or 0.8% at 15,265.92.
BSE Power Index went down by 0.47% to close at 2,606.96 as weakness seen in GVK Power, Reliance Infra, Reliance Power, CESC, Torrent Power and NTPC.
Pharma stocks have continued their outperformance. Healthcare is the only index that remained on buyers' radar through the day, jumped by 2.16% at 4,411.91. Ranbaxy Labs is the real hero today, shot up over 6.5% on the rumours that the company is scouting for tie up in overseas markets. Other pharma gainers were Cadila Health, Divis Labs, Aurobindo Pharma, Novartis India, Glenmark and Cipla.
Oil & Gas Index ended flat. BPCL, HPCL, Reliance Industries and IOC were among gainers while ONGC, RNRL, Cairn India, Petronet LNG, Essar Oil and GAIL losers. Nymex Crude slipped below USD 135 a barrel.
Most active counters on the bourses were Reliance Ind, Reliance Capital, Ranbaxy Labs and Reliance Petroleum.
Source: moneycontrol.com

Stock Idea: Omaxe Ltd.

Realty company Omaxe posted, as expected, very good results for year ended 31-03-08. Thanks to very strong sales, especially in residential space, the consolidated revenue of the company rose by a whopping 60% at Rs.2,307.75 crore. PAT was up by an unbelievable 102.85% at Rs.494.87 crore. Obviously NPM was also very high, it rose from 16.94% in FY 07 to 21.44% in FY 08.
During the year, the company allotted 100 recurred non-convertible debentures of Rs.1 crore each, amounting to Rs.100 crore, to LIC Mutual Fund. These funds are to be utilized for its ongoing projects and some parts of it for future acquisitions.
Regarding acquisitions, the company is looking at buying some established company in the Middle East. It is scouting around for a small company, which has only one or more focused projects on hands.
It’s focus right now is to get into developing projects overseas. UAE could be one of its focussed areas as that country is on a major growth trajectory and infrastructure development is happening at a break-neck speed.
On the bourses, realty stocks have been literally hammered down and for now, investors are shunning this sector. Omaxe, fundamentally is a sound company and if you can rise above the current volatility and disenchantment for realty stocks, then you can take a long term position in the stock. Yesterday, the stock touched a new low of Rs.171, but managed to close at Rs.174. Worth a buy at these levels.

Source: sptulsian.com

Intraday Trading Calls for 10th June

Indian Stock Market may see a small recovery due to short covering after huge selling yesterday. It remains very volatile throughout the day today. But a flat to positive closing expected.
Today's Intraday Stock Tips/Trading Calls:
CAIRN INDIA
VOLTAS
PUNJ LLYOD
PRAJ INDUSTRIES
IDFC
UNITECH
For Levels and Targets CLICK HERE.
Others: Infosys, Asian Electronics, KS Oils, Neyveli Lignite may see good gains.
Corporate News:
Idea cellular to buy out 40.8% BK Modi’s stake in Spice Communication for Rs22bn. (ET)
TCS hedges US$1.5bn to safeguard it from Rupee fluctuations. (BS)
UB group to offer stake in airline business to raise funds. (BL)
ONGC may not accept Gazprom’s offer to pick up 50% in its (Gazprom’s) shallow water exploration asset in the North Eastern coast off Orissa. (BL)
Educomp Solutions has secured contracts from 395 schools under the ICT segment. (BL)
M&M to capitalise on the recent acquisition of the US$12mn Italian two-wheeler design company, made by its component arm Systech. (BL)
Paramount Airways has joined the race for buying Spicejet. (ET)
Great Offshore drops plans to acquire two rigs; the company is now planning to buy only one rig. (ET)
HT Media has signed a JV with German media group Hubert Burda. It will set up a printing facility near its own Greater Noida facility. (BL)
Ashok Leyland to borrow Rs10bn in two equal parts to raise its India capacity. (Mint)
Moser Baer plans to set up Rs20bn manufacturing facility near Chennai to make photovoltaic products. (BL)
Aditya Birla Group may acquire 51% stake in Apollo Sindhoori Capital, a broking firm promoted by Apollo Hospital Group. (ET)
SC directs Sahara India Financial Corporation to approach RBI on Thursday to convince it that its financial activities are in order. (BS)
Zydus Cadila acquires majority stake in South Africa based Simalaya Pharmaceuticals. (BS)
BSNL reduces STD rates for its fixed line and cellular subscribers by up to 50%. (BL)
Gujarat High Court has stayed on NPPA order to cut prices of Cadila's drug Envas. (ET)
Cognizant Techology has acquired Strategic Vision Consulting, Inc (SVC), a management and technology consulting firm in US. (BL)
Pipavav Shipyard plans to build offshore patrol vessels for the Indian Navy. (Mint)
Good Luck

Monday, June 9, 2008

Stock Idea: Cadila Healthcare


Religare has maintained its buy rating on Cadila Healthcare with a target price of Rs 381 in its June 5, 2008 research report. "We estimate that the domestic market would witness a 12% CAGR over FY08-FY10 driven by consolidation in existing therapeutics as well as entry into newer arears like the neutraceuticals and hospital segment. The outlook on the Hospira JV, which will commence in H2FY09, is very promising."
"Valuations at 11.7x FY09E EPS of Rs 24.6 and 9.6X FY10E EPS of Rs 29.8 remain attractive. We remain Buy with target price of Rs 381 based on 15x FY09E earnings," says Religare's research report

Markets Today

Markets Snapshot
Markets witness sharp fall falling U.S. market cues and in line with Asian peers
Nifty hits new 2008-low during the day; manages to close at 4500; Nifty recovers nearly 80 pts from day's low
Sensex ends down 506 pts at 15066; falls below 15000 during the day
Reliance Ind hits new 2008-lows at 2111
BSE Smalll-cap Index down 3.6%, Nifty Junior down 3.8%
Bank, Realty & Cap Goods hit new 2008-lows
BSE Realty Index down 7%; Unitech down 9.6%, DLF down 7.2%
BSE IT Index down 4.2%; TCS down 3.4%, Wipro down 5%, Infosys down 4.6%
BSE Cap Goods, Oil & Gas Index down nearly 3.3%
Index losers; Suzlon down 6.5%, ONGC down 6.3%, HDFC down 6%
Index Gainers; Nalco up 4.8%, Cairn India up 4.4%, Ranbaxy up 3.7%, RPL up 2.9%
Non-Index losers; Bajaj Auto Fin down 13.5%, Neyveli Lignite down 9.2%, HCC down 10%, Alok down 9.3%
NSE Advance Decline at 1:8
Total market turnover at Rs 76668 cr; FNO turnover at Rs 58333 cr
F&O Snapshot
Nifty futures discount at 14 pts; add 33.5 lakh shares in OI
Some short covering in Nifty futures seen in last half an hour of trade
Unwiding seen in momentum stocks; Fresh long seen in Cairn, Ranbaxy, R Comm
Fresh shorts seen across sector: oil & gas, realty, infra stocks
Fresh shorts: Suzlon, NTPC, Power Grid, RIL, ONGC, JP Ass, GMR Infra. DLF
Unwinding of long positions seen in Ispat, Alok, Ambuja Cem, Nag Fert, IFCI
Options Action Nifty 4200 put add 26 lakh shares in OI Nifty 4500 call add 24 lakh shares in OI Nifty 4400 put add 12.5 lakh shares in OI Nifty 4700 call shed 12 lakh shares in OI

Source: moneycontrol.com

Intraday Trading Calls for 09th June

A Gap down opening (-2-3%) expected in Stock Market India but it may recover smartly from intraday lower levels. So today can be a golden chance for investing in valuable stocks at lower levels.
Today's Intraday Stock Tips/Trading Calls:
Buy at lower levels from previous close for intraday recovery gains:
RPL
CAIRN INDIA
ONGC
ASIAN ELECTRONICS
VOLTAS
PRAJ INDUSTRIES
SELAN EXPLORATION
Corporate News
SpiceJet is looking to raise Rs4bn in equity capital to part finance aircraft acquisitions plans.(BL)
Punj Lloyd lines up a capex of US$100mn for 2008-09.(BS) Punj Lloyd secures Rs6.5bn order from IOC for the latter’s Barauni refinery.(FE)
NTPC and its JV subsidiary, Nabinagar power plant, awards BTG contracts to BHEL for Rs35bn.(ET)
Nalco announces expansion plans worth Rs400bn for the next five years.(BL)
Essar Steel Holdings says it might raise its takeover bid for US based Esmark.(BS)
Reliance Petroleum's export oriented 29mn tons refinery to start generating revenues from current year.(BS)
Indian Oil and Oil India to acquire Reliance Industries’ offshore oil block in East Timor.(BL)
JK Lakshmi Cement is adding five more ready-mix concrete units as part of its expansion plans.(ET)
UAE based Etisalat pulls out of negotiations to acquire stake in Spice Communications; cites high valuations.(BS)
Cargill Ventures has cut by half the US$9mn investment it had announced into KPIT Cummins a year ago.(DNA)
GMR Infrastructure to relocate its 220MW power plant to Kakinada in AP from Mangalore in Karnataka.(DNA)
Sobha Developers to foray into the Mysore realty market with three projects in current fiscal.(BS)
Corporation Bank may waive Rs2.8bn under the debt relief scheme for farmers.(BL)
UK based Vincent Tchenguiz is holding talks with Tata, to invite investment from the latter in a new US$10bn environment fund.(ET)
CavinKare and Henkel have announced a 5% hike across product categories.(TOI)
Axis PE, the PE arm of Axis Bank, is investing Rs1.4bn in two Ahmedabad companies.(ET)
Delhi government owned Indraprastha Power Generation to set up a 2,000MW coal fired power station in MP.(FE)
Gail India is looking at setting up a CNG corridor comprising Nagapattinam, Karaikal and Puducherry.(ET)
Six NBFCs, including Shriram Transport Finance, Ashok Leyland and Reliance Capital are believed to be in the race for buying a US$1bn loan portfolio of Citicorp Finance.(ET)
Alok Industries has resumed talks with PE players to dilute 20% equity it owns in its unlisted unit, Alok Infrastructure.(ET)
Mercator Lines has chartered out a new offshore rig to a Singapore-based firm for US$93,000 per day for three years.(ET)
Good Luck

Sunday, June 8, 2008

Stock Ideas: Kamanwala Housing, Spanco Telesystems

After posting encouraging results for Q4FY08, Kamanwala Housing Construction Ltd. (Code: 511131) (Rs.122.65) has announced 1:1 bonus along with 25% dividend for FY08. For Q4FY08, its topline shot up 120% to Rs.28.50 cr. and bottomline surged by 85% to Rs.9.40 cr. posting a whopping EPS of Rs.17 for the quarter. But operating in the real estate & construction sector and following the revenue model on sale of agreement basis, the company is bound to post erratic and lumpy results on a quarterly basis. For full FY08, it reported total revenue of Rs.96 cr. and net profit of Rs.24.40 cr. i.e. EPS of Rs.43 on its current equity of Rs.5.65 cr. Notably, the company paid a tax of Rs.8.50 cr., which substantiates the profit. The company operates mainly in Mumbai and has a few good residential projects in Malad & Santacruz and a huge commercial project in the Bandra-Kurla complex. It has several projects lined up for future in Andheri, Mahim, Goregaon etc and even in Hydrabad. Lately, it also bought 10,000 sq. mt. land in Turbhe for Rs.15 cr. Recently, the company has allotted nearly 20 lakh preferential warrant to promoters at Rs.98. At the current market cap of Rs.75 cr., the scrip is trading fairly cheap and has the potential to cross Rs.200 level in the medium-term.


From providing telecom integration services to MNCs, PSUs and Defence sector, Spanco Telesystems Ltd. (Code: 508976) (Rs.132) has evolved to extend its expertise into the dynamic space of Business Process Outsourcing (BPO) and Radiofrequency identification (RFID) services. Recently in March 2008, the company bagged huge orders to the tune of Rs.200 cr. from Maharashtra, Bihar and M.P. governments. On the other hand, it is executing a 10-year contract to set up, operate and maintain Interactive Voice Response System (IVRS) and Regional Call Centres (RCC) for the Indian Railways in a joint venture with the Spice group. For the first three quarters, it has already recorded an EPS of Rs.17, which is higher than the entire FY07 EPS of Rs.16. Further, it is expected to clock a turnover of Rs.625 cr. with profit of around Rs.46 cr. on a standalone basis. This will work out to an EPS of Rs.22 on its current equity of Rs.20.65 cr. and an EPS of Rs.19.50 on its fully diluted equity of Rs.23.50 cr. At the same time, the company has decided to transfer all its BPO related businesses 10 including Respondez (international BPO), domestic call centre operations and the IRCTC project (a 50:50 JV with the Spice Telecom Group) into a separate subsidiary. This may be a precursor to unlocking value by hiving-off or de-merging its BPO business into a separate listed company in future. A screaming buy.

Source: Internet (MT)

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



free counter