Dear Investors,
Here's is an interesting article which I found browsing the net. The Article's from a New York-based financial astrologer Ashok Motiani, which says "Sensex will start rising from Dec 10, 2008 onwards, and will reach 16000 points by the end of february. India will outperform the American Economy". - Ashok Motianifinacial astrologer
Click on the picture to enlarge
* A big game is planned in Educomp as its share price is artificially propped up to force the bears to cover up their short position. Once the game is over, the scrip will witness a vertical fall. Don’t touch this counter even with a barge pole.
* C&C Construction in a JV with BSCPL Infrastructure has bagged a huge order of Rs.635 cr. to construct the parliament building and the new Indian Chancery in Kabul, Afghanistan, taking its order book to Rs.2381 cr. Accumulate at sharp declines.
* Hitachi Home intends to expand at a capex of Rs.45 cr. This shows its confidence in domestic spending.
* Due to a drastic fall in demand, auto ancillaries like Banco Products, Nelcast, Bosch Ltd. are headed for a temporary shut down. Stay away from this sector.
* As per market grapevine, Great Offshore is in big financial trouble. Scrip may continue its downward movement in coming weeks. Exit even now.
* Sathavahana Ispat is recommended for decent gains in the long-term. Additional metallurgical coke capacity of 150,000 TPA and augmentation of additional 10 MW of power is underway. Marketmen expect an EPS of above Rs.20 in the current year.
* An analyst strongly recommends investment in Prithvi Information, which is likely to post an EPS of Rs.30 in FY09.
* Deepak Fertilisers is being bought by some shrewd investors in anticipation of 30% appreciation in the medium-term. It is likely to post an EPS of over Rs.20 in the current year.
* One chemical analyst strongly recommends the shares of Balaji Amines, which is all set to post an EPS of Rs.30 in FY09 and Rs.40 in FY10 on the back of its Rs.40 cr. expansion.
* Panama Petrochem, which is on its way to post an EPS of above Rs.50 in FY09, is an excellent buy for the long-term.
* XL Telecom is the cheapest energy stock. With its foray into solar cells and further expansion, the shares are good for the long-term. Likely EPS of over Rs.30 in FY09.
* The stock of Polyplex Corporation is being mopped up by known parties in anticipation of its posting consolidated EPS of Rs.65 in FY08. Falling crude oil prices and further expansion will push up its EPS sharply to Rs.85 in FY10.
Unitech expects to raise Rs 1,500 crore through sale of offices, hotel and land in the next 3-4 months to tide over liquidity crunch and pay off debt. The company is in talks with private equity funds to sell stake in 4-5 residential projects to raise over $100 million.
Novartis has tied up with leading healthcare company USV to market its anti-diabetic product Galvus, in a move that would pitch the pharma company directly against Merck. Novartis plans to pitch Galvus against Merck’s Januvia by pricing it lower, in the Indian anti-diabetic market which saw total sales of Rs 1,672 crore till June 2008.
JSW, Ispat and Essar are likely to slash prices of steel in the spot market by 5-6% next month. This will be the fourth month in a row that domestic steel companies will cut prices. The price cut is aimed at curbing imports and boosting the demand for domestic products.
The Tatas, who now own 10% in Steel Strips through investment company Kalimati Investment, could see their shareholding rise to 13.5% after conversion of the optionally convertible bonds (OCB) issued earlier to Tata Capital, another
group company. The bonds worth Rs 20 crore were issued in July on a preferential basis.
Japanese auto major Suzuki Motor Corp is set to buy out the stake of its Indian partner in the two-wheeler venture, Suzuki Motorcycle India.
Bharti Teletech, manufacturers and distributors of telecom and allied products, has won a major contract from Bharat Sanchar Nigam Ltd (BSNL), to manufacture fixed line phones. Under the Rs 35 cr contract Bharti Teletech will manufacture
and supply over 9 lakh caller line identification phones (CLIP) for BSNL over a period of 5 months. The phones will be manufactured at the company’s manufacturing facility in Ludhiana where it has recently invested over Rs 5 cr to enhance capacity. Post the investment; the Ludhiana unit has an annual production capacity of 5 mn phones.
KLG Systel has announced that the Power System Solution (PSS) division of the company has been awarded order of Rs 8.36 crore from West Bengal State Electricity Distribution Company for the billing software and services for nearly 3.64 lakhs consumers.
Sun Pharmaceutical Industries has announced that its fully owned US subsidiary, Sun Pharmaceutical Industries, Inc has acquired 100% ownership of Chattem Chemicals, Inc from Elcat, Inc. The terms of the transaction were not disclosed. The company will apply to regulatory authorities for appropriate clearances, as required.
Indian conglomerate Tata-owned Corus has sold its 50 per cent stake in GrantRail Group to its Netherlands-based joint venture partner VolkerWessels. Following the development, railway infrastructure services firm GrantRail, which was a
50:50 joint venture between Corus and VolkerWessels, has become a fully-owned entity of the Dutch firm.
NIFTY 3000 DEC CALL (BUY ) 63-65 (Target1) 75 (Target2) 88 (Sl) 58 (BUY 02 LOTS)
THOMAS COOK INDIA (SELL) CMP (Target1) 40 ( Target 2) LOWER CIRCUIT (Sl) 48 ( SELL 100 SHARES)
INSIDE NEWS
Hotel & tourism stocks to come under severe selling with the attack on Taj hotel in mumbai
Inflation expected to come below 8.5% which will help markets sentiment
Unitech plans to rise 1500 crs with sale of its assets to pay off the debt
The crisis in Mumbai is not yet done and we do beleive that it would take some more time to end the drama that have taken place 36 hours before.
SEBI declared holiday yesterday and decision for today would be taken on this regard at around 0800 AM today ,
US markets closed yesterday on account of THANKS GIVING , Eruopean markets yesterday traded in green after positive movement by the Global markets . Crude is hovering around 53$.
On account of expiry we would see lot of volatility in Indian Markets and with the bad news around the corner we may see markets to open deep in red , the sentiment would be negative for some more days.Tourism and Hotel industry to be affected and the stocks would be under severe pressure in days to come
We advice members to short in morning if at all market trades but sqaure off with 2-3 % gains , we expect some recovery to come in the later part of the day as the news of the hostage crisis and the story may end . Inflation also came down with lower fuel and food prices . There would be GDP announcement by RBI in the later afternoon which would also decide the fate of the markets
Overall we see higly volatile and more over confusing markets for the day
VIL was incorporated on 18th June, 1981 as 'Visaka Asbestos Cement Products Limited'. With effect from 9th August 1990, the name of the Company was changed to Visaka Industries Limited. The Company is a Rs. 500 cr. turnover, multi product/location establishment, presently engaged in the manufacture of Building Products, Synthetic Blended Yarn. The Company's Building Product Plants (Asbestos Cement Sheets) are located at 7 different places. The Synthetic Blended Yarn factory is located at Nagpur in Maharashtra.
Product Profile :- Asbestos Cement Sheets: It is a 70 years old industry with a total annual production capacity in India being 2.70 mn tonnes. There are mainly 4 major players in this industry cumulating to 59% of the total production capacity.During the year 2006-2007 the ACS Industry has grown at 16% p.a. ACS is mainly used as roofing materials in rural, semi urban areas and by Industrial sector. The company presently has production facilities. The company has recently set a factory to make a new product 'Reinforced Building Boards' new age multi-purpose cement board with a wide range of applications. The project cost was Rs. 40 cr. for setting up 60,000 MT production facility, funded through fund raised areas and by Industrial sector. The company presently has production facilities. The company has recently set a factory to make a new product 'Reinforced Building Boards' new age multi-purpose cement board with awide range of applications.
The project cost was Rs. 40 cr. for setting up 60,000 MT production facility, funded through fund raised by shares through QIP route on 24.01.07. Textile Division :- VIL diversified in 1992, to manufacture Synthetic Blended Yarns, using Twin Air Jet technology of Murata, Japan. Its manufacturing plant at Nagpur, Maharashtra, has 28 Murata Twin air jet machines, with a total of 1816 spindle position. The yarn produced, range from 100% Polyester to Polyester-Viscose blends (85/15). The plant produced 6619 tonnes of yarn after the capacity was increased by 50%. Visaka's production facility at Nagpur is the single largest Twin Air Jet Spinning Installation in the world. Visaka's Yarns are used by leading textile mills to manufacture a wide range of fabrics including shirtings, suitings, fashion fabrics, upholstery and embroidery laces. The company exports 40% of Yarn production to Europe.
RAW MATERIALS :- The main raw materials for Building Products are Asbestos Fibre and Cement. The former is imported amongst others from lab Crysotile INC., of Canada and Sama Fibres of Brazil, whereas the latter is manufactured indigenously and is procured amongst others from Orient Cement, Rajashree Cements and India Cements Ltd.
In 2007-08 VIL acquired Shakti Roofing, a Pune based Rs. 50 cr. revenue & Rs. 5 cr. PAT company during 2006- 2007, which has made VIL a market leader with an installed capacity of 6,30,000 tonnes by the end of 2006-2007, it has set up its plants in multiple locations which enable it to reduce its cost component incurred due to transportation of raw materials and finished goods. It has its plants strategically placed which helps its marketing network to work efficiently.
Reinforced Building Board is a new age multi-purpose cement board with a wide range of applications. These boards have gained wide market acceptance and is widely preferred over wood/gypsum based products. The unique composition of manufacturing process makes this wood free eco friendly board the 'preferred' choice amongst Architects and Interior Designers. Boards are very economical when compared to the similar boards. They are resistant to environmental corrosion and are more durable and hence affordable. Urbanization is leading to high rise apartments where Reinforced Building Boards are used for Internal walls to reduce weight and increase in floor area. The demand for false roofing and partition board is increasing by 15% to 20% per annum due to increased construction activities whereas availability of wood based material is dwindling by around 10% every year. Reinforced Building Boards has been slotted to capture this gap-in demand supply situation. Through the company's extensive network the product is marketed very efficiently, thereby increasing the demand for the product. RBB has a large market acceptance and is a synergy to the ACS division of Visaka, boosting up its revenues and profits.
In 07-08, its PAT came down heavily, mainly due to increased cost of cement and losses suffered by garment division (finally, company sold its garment factory at a loss). However, company has maintained 30% dividend. It allotted 2007995 shares to Shakti Roofing.
Valuations: - Stock is trading at: 1) 2.08 x FY09E EPS., 2) 1.87 X FY10E EPS. Needless to say that scrip is a screaming buy. Pays 30% dividend. Book value is Rs. 100/-. May pay interim dividend in current year. Promoters are investor friendly and aggressive. Turnover has grown from 5 crs. to 500 crs. in 15 years. Just Grab & Hold it tight guys at Cmp Rs 39/-.
Dear Investors,
Huge Discount to SOKHI PAID SERVICES ends today, I would like to congratulate all new JOINEES.
For those who wish to Subscribe, last oppurtunity for you'll to confirm you PAID MEMBERSHIP today and complete the formalities within 3 working days.
We wont entertain any discounts after 25th November, we have give ample time for all to make most of this HUGE Discount !
Book your seats today at sokhitrading@gmail.com (www.sokhipaid.co.nr)
Due to huge rush to paid membership we decided not post any FREE TIPS for today. Calls to paid members were sent as usual before the market hrs.
Tata Motors has decided to shut down its Jamshedpur plant from November 25 to 29.
Reliance Power has said it hopes to commission the first phase of the 600 MW Rosa Power project by September 2009, six months ahead of schedule.
Federal Bank to hire 3,000 persons in two to three years.
Maruti Suzuki India says it is targeting sale of about 50,000 units of its latest model-A-star in the domestic market.
Jet Airways is likely to announce a 20% cut in the salaries of its pilots, engineers and some other staff.
Dabur India acquires a 72.2% stake in Fem Care Pharma for Rs2bn in an all-cash deal.
Aditya Birla Minerals, a subsidiary of Hindalco Industries, has suspended work on the Ezperanza South Project at its Mount Gordon operations in Australia.
Reliance Industries’ plans to sell petrol and diesel from its export-oriented refinery at Jamnagar, Gujarat.
Anant Raj Industries says it is reducing hospitality plans for the current fiscal due to a slowdown in the sector.
Reliance Industries’ oil deals with Kurdistan are illegal, says Iraq Oil Minister.
Wockhardt in talks with PE firms to raise US$200mn.
Tata owned Jaguar Land Rover is in secret talks with the British government for a 1bn pound loan.
SAIL plans to approach market for borrowing 50% of its Rs540bn expansion plan.
DLF’s Mumbai projects are getting delayed.
Marico Industries is looking at more acquisitions in Africa after it acquired brands in South Africa and Egypt.
Reliance Industries raised Rs20bn through five year bonds at an annualized coupon rate 11.45%.
Maruti Suzuki has gone for a 5% cut in production costs for all cars.
Jet Airways in talks with SBI, PNB to raise Rs15bn.
Cummins India to sell its rental business to Indian subsidiary of Agrreko Plc.
Cobra Beer up for sale for an estimated 200mn pounds.
Satyam Computer Services, is seen as the favourite to win a significant IT outsourcing contract from Indian Railways.
Air India has decided to reduce airfares by 12%, which is likely to be implemented in mid-December.
National Housing Bank has increased the refinance rate to 12% from 9% earlier.
Ranbaxy Fine Chemical’s plan to acquire the US-based specialty chemicals maker Mallinckrodt Baker is facing delays because of valuation problems.
Tata Tea is gearing up to make an entry into the energy drinks segment identifying fortified beverages as a growth area.
Sun Pharma's US arm, Caraco Pharmaceutical, will file a response to the US FDA warning on its quality standards.
Maruti Suzuki will launch its first ‘Made in India’ compact car in 2010-11.
Glenmark said it has received the US FDA approval for marketing Ranitidine tablets, used to treat and prevent ulcers.
Promoter of Great Offshore may dilute stake to pay up dues.
UK-based Serco Group has acquired Gurgaon-based BPO firm InfoVision.
Future Group has cut prices on some products to pass on the benefits of a sharp decline in some commodities.
Tata Power, Reliance Infrastructure and GMR Energy are scouting for coal assets in Indonesia after the share prices of major mines there witnessed steep erosion.
Aviation fuel may become ‘declared goods’ by year-end.
Government released a draft Bill to create a debt management office, which would be a statutory corporate body acting as an agent of both the central and state governments.
The Commerce Ministry is mulling a temporary licensing regime for import of select items.
India’s forex reserves fell by US$5bn during the week-ended 14th November 2008.
Companies planning duty-free shops in the country will need to take a separate clearance for the local Customs Authorities.
The 12 major state-owned ports, which handle 70% of India’s import-export traffic handled total traffic of 42.2mn tonnes compared with 44.5mn tonnes in the same month last year.
Government is planning to set up a special dedicated fund to provide loans to infrastructure projects being developed by private companies as well as by government-private JV.
Government asks regulator TRAI to review the five-year old termination charge of 30 paise a minute per call for fixed and mobile telephony.
Cabinet Committee on Economic Affairs has approved awarding of 44 oil and gas blocks under Nelp-VII.
Government is likely to allow foreign direct investment in ‘investment companies’.
Global meltdown may trigger 0.5mn job losses in the textile sector alone within five months if corrective measures are not taken, says Commerce Secretary.
NIFTY 2900 NOV CALL (BUY) 24-28 (Target1) 33 ( Target 2) 45 ( Target 3) 56 (Sl) 20 ( BUY 02 LOTS )
NIFTY 2900 NOV CALL (BUY) <>
BANK OF INDIA (BUY) 251-253 (Target1) 257 ( Target 2) 262 (Sl) 246 ( BUY 100 SHARES)
NAGARJUNA CONSTRUCTIONS (BUY ) 60-60.5 (Target1) 64.5 ( Target 2) 69 (Sl) 53 ( TARGET IN NEXT 7-8 TRADING SESSIONS )
HPCL (BUY) 225-228 (Target1) 250 ( Target 2) 265 (Sl) 215
Promoters of Bharat Forge, Adani Enterprises, Aptech, SRF, West Coast Paper have either hiked stakes or are planning to increase their shareholding. Keep a look on all these stocks.
Government may announce excise duty cut or reduction in automobile sector , keep an eye on the sector
Prithvi Information is being tipped to give 50% appreciation as it is likely to post an EPS of above Rs.40 in FY08
Markets which were oversold ended the seven day losing streak and ended positive on friday with a gain of more than 450 points.
US markets too gained more than 6% in the late session after initally high volatility.
Asian markets are mixed as many markets are trading in red ,NIKKIE is closed for the day.
Indian markets are set to open gap up by more than 70-100 points in NIFTY , we may see markets to trade positive today with hopes of announcement on rate cuts and sops for automobile industry
As the expiry is very near we see short covering may also lead to rise in markets .Overall we expect markets to move positive and we advice members to go long , also watch out how EUROPEAN markets pans out in the afternoon.
ONGC and its partners bag 20 blocks under NELP VII.
CCEA rejects Cairn India’s bid for the Mumbai Basin block.
Reliance Capital AMC gets Malaysia license.
Maruti rules out price cuts for its products.
Religare plans to sell it’s AMC stake to Aegon.
Hindustan Zinc has raised zinc prices by Rs2,800/ton.
Malco reduces production by 60%.
Nalco cuts aluminium prices by 3.5%.
Fitch downgrades bonds issued by Uco Bank and Indusind Bank.
MRTPC has initiated investigations into Jet Airways and JetLite over cartelization concerns.
Demand for JSW Steel’s auto grade steel has seen drop of 40-50%.
Cummins India to sell its power retail business.
Alok Industries puts SEZ plan on hold.
JSW Steel expects a 10-12% growth in sales in FY09.
Glenmark Pharma gets marketing rights in US for Azathioprine tablets.
Kernex wins an order worth US$17.5mn from Egyptian Railway.
Polaris denies reports of Citi selling its stake in the company.
Fitch downgrades long term credit rating of Ansal Infrastructure to negative from stable.
Air Deccan promoter trims its stake in the company to 5.01%.
Colgate-Palmolive India sells its Nepal subsidiary.
Welspun Gujarat bags orders worth Rs5bn from US and Gulf countries.
GVK Power plans to raise Rs2.4bn for its power unit in Punjab.
Kalpataru Power wins an order worth Rs1.4bn from a UAE firm.
Patni Computers wins contract from Turkish bank.
Inflation rate fell marginally to 8.9% for the week ended November 8, 2008.
Crude oil prices slipped below US$50/bbl for the first time since May 2005.
Finance ministry is considering a further relaxation in overseas borrowing norms for infrastructure companies.
Government has approved an average 96% increase in salaries of those working in central public sector enterprises.
Local rates may fall to 20 paise per minute according to telecom minister.
Indian companies had borrowed US$1bn overseas in October 2008.
Centre may hike borrowing caps for state governments.
NHAI has relaxed the rule limiting eight bids per road builder.
CCEA awards 44 blocks in the NELP-VII round.
Government mulls Rs750bn refinance window to provide concessional funds for infrastructure, housing and SMEs.
Government likely to finalize sops for textile industry.
Yesterday bears had a good session and this caused us to loose more than 300 points in sensex , but the way the markets recovered in the late session looks that the bottom is very near.
US markets had a volatile session yesterday , the DOW was down initially 200 points then recovered and went to touch a high more than 2.5% , with the announcement in late session about delay in the bailout for the three big AUTOMAKERS the stocks came sliding and DOWJONES came down 5% low.
Crude is trading below 50$ mark for the first time in three years , which is a bit good news
Asian markets which looked panic in the early trade recovered but still down more than 2%
Indian markets set to open low , we expect SENSEX opening 100-150 points low . After seven trading sessions of negative close , today we may see recovery happening. The technicals say there would be buying coming as we lost nearly 750 points in nifty, Members those who are short in markets are adviced to book profits as this rally would be very swift and fast
Overall we advice members to buy at the lower levels for quick gains in 3-4 trading sessions.
We recommend a buy in Alphageo (India) from a short-term perspective. It is apparent from the charts of Alphageo that it has been on a long-term downtrend from its life-time high of Rs 1,078 recorded in early January. Since then, the stock has been forming lower troughs and lower peaks. During mid-September, the stock’s downtrend accelerated and it declined steeply.
However, the stock found support at Rs 103 (52-week low) on November 20 and bounced up forming inverted hammer candlestick pattern, which indicates short-term bullishness. We observe that the stock has a significant long-term support at Rs 100 that is 1994 peak and 2006 low.
Moreover, we notice that the daily relative strength index is displaying positive divergence and moving average convergence and divergence also is displaying positive divergence. The weekly RSI is hovering in the oversold territory.
We take a contrarian view on the stock from a short-term perspective and anticipate it to make a corrective up move until it hits our price target of Rs 120 in the impending trading sessions.
Traders with short-term perspective can buy the stock at CMP Rs 108 while maintaining a stop-loss at Rs 102.
NIFTY 2800 NOV CALL (BUY) 17-21 (Target1) 33 ( Target 2) 45 (Sl) NO SL ( BUY 06 LOTS ) ( THIS IS SURE SHOT CALL, IF POSSIBLE HOLD ON TILL EXPIRY AND CAN BUY IN MORE LOTS )
SBI (BUY) 1065 - 1070 (Target1) 1087 ( Target 2) 1101 (Sl) 1033 ( BUY 20 SHARES , IF POSSIBLE HOLD ON WITH SL 999 FOR TARGET 1200 ST)
UNION BANK (BUY ) 143-144.5 (Target1) 148 ( Target 2) 152 (Sl) 140.5
" We are at 5 right now......GOOD TIMES RETURN AT 6, SO CHEER UP....."
(Click on the Image to Enlarge)
This Input was sent by one of my very loyal PAID MEMBER & a very good friend of my indeed, currently working in a High Managerial Position at WIPRO.
I'm really lucky to have such individuals in my PAID GROUP who always share their valuable input with me and all my fellow investors'.
I hope you'll have read the the full two pages coverage on ENNORE COKE LTD by one the leading financials daily BUSINESS STANDARD, " Ennore is being positioned as a socially-responsive dynamic organization".
I have always recommended this scrip to PAID MEMBERS as well to the FREE GROUP. Currently one should accumulate this MULTIBAGGER scrip available at throw away price of Rs 16 - 18. I would also like to disclose the fact that my PMS MEMBERS and myself have this gem in BULK QUANTITY.
Note : HUGE DISCOUNT TO MY PAID SERVICE IS VALID TILL 25th NOVEMBER, Investors can rush their mails to sokhitrading@gmail.com . After 25th NO MORE DISCOUNTS will be given as I have given ample time for all to avail this offer.
TCS is likely to win the e-governance contract to computerize ESIC.
BHEL in talks for JV with UK based Sheffield Forgemaster International and Japan’s Kobe Steel for nuclear forging units. POSITIVE NEWS FOR THIS SCRIP.
Maruti launches A-Star with a price tag of Rs3.46 lac for the base version.
NALCO gets nod from Indonesian government for Rs170bn aluminium smelter and captive power projects.
HUL hikes prices of various products by 1-28% since October 2008. POSITIVE FOR THIS SCRIP.
Maruti cuts production at Gurgaon plant by 5%.
Biocon is planning to launch drugs for the treatment of cancer, diabetes and auto immune diseases in India.
DLF requests Haryana government to refund license fees worth Rs2.3bn for various commercial and residential projects in Gurgaon.
RIL is expected to start commercial production from D6 KG-Basin field by next month according to Canadian partner Niko Resources. POSTIVIE FOR THIS SCRIP
RIL writes to government to re-start retailing petrol and diesel. VERY POSITIVE FOR THIS SCRIP
The DLF-Fortis hospital joint venture facing delay.
IndusInd Bank gets RBI nod for expansion.
Asian Paints shuts its phthalic anhydride (PAN) plant in Gujarat.
Tata Steel aims to double its return on capital in the next four years via improving process at the European factories. ALWAYS A BUY FOR ME.
Powergrid boards approve investment plans of Rs75bn to set-up three power transmission projects. POSITIVE FOR THIS SCRIP
HCL-Tech inks deal with Xerox for managed printing services.
Aurobindo Pharma gets US FDA nod for its alfuzosin hydrochloride extended realize tablets.
Fitch affirms ICICI ratings, says market disruptions can hurt.
Andhra Bank hikes NRE term deposit rates.
Sobha Developers has reduced prices by 8% on an average in 25 of its 34 ongoing residential projects last week. NEGATIVE FOR THIS SCRIP
MindTree has revised downwards its recruitment plans for the current fiscal by 40%.
GAIL eyes Rs500bn revenues by FY11.
US drug major Eli Lilly sues Wockhardt on anxiety drug patent.
NTPC and various state power firms appeals to coal ministry to resolve coal shortage issues.
CMIE revises India’s economic growth forecast to 8.2% from the earlier expectation of 8.7%.
Government to spend Rs8bn for uranium exploration projects.
RBI makes recast of realty loans tougher, forcing builders to cut house prices.
Import of sensitive items up 27% in first half of current fiscal.
Bailout package for Indian industry hit by global slowdown is likely to be finalized by this weekend.
Credit off take falls by ~Rs166bn between in week ended November 7th 2008.
Crude oil slips to 22-month low, touches US$53 per barrel. OIL CO'S TO BENIFIT POSTIVE FOR ALL OIL COUNTERS
Ceat: RPG Cellular Investments & HOL buys 13.3 lakh shares @ Rs 36/sh. Merrill Lynch Cap Mkts Espana S.A.SVB sells 3.8 lakh shares @ Rs 36/sh.
Kalindee Rail Nirman: L&T Capital Co buys 9.4 lakh shares @ Rs 122/sh. AMIF FCCB sells 4.97 lakh shares @ Rs 115/sh. Sundaram MF sells 1.6 lakh shares @ Rs 130/sh. DSP Merill Lynch TR Co sells 2 lakh shares @ Rs 130/sh.
Ruchi Soya: Swiss Finance Corporation buys 39.5 lakh shares at Rs 26.75/sh.
Essel Propack: Ramsingh Motilal Agarwal buys 5 lakh shares at Rs 13.20/sh. Agarwal Textile Ind sells 5 lakh shares at 13.20/sh.
Varun Industries: United Credit Securities buys 1.25 lakh shares at Rs 28.33/sh.
Elgi Tyre & Tread: Ramsingh Motilal Agarwal buys 7.7 lakh shares at Rs 6/sh. Aditya International sells 7.7 lakh shares at Rs 6/sh.
Treadsdirect: Ramsingh Motilal Agarwal buys 15.4 lakh shares at Rs 3.60/sh. Aditya International sells 15.4 lakh shares at Rs 3.60/sh.
Abhishek Industries: Lotus Global Investments sells 67.5 Lakh shares at Rs 7.50/sh.
Karuturi Global: Anjali Chawla buys and Kabul Chawla sells 9.99 lakh shares at 7.54/sh.
Marksans Pharma: Anjali Chawla buys and Kabul Chawla sells 19.95 lakh shares at 6.03/sh.
Anil Product: Anjali Chawla buys and Kabul Chawla sells 1 lakh shares at 56.50/sh
WITH HUGE SELL OFF IN US MARKETS AND FOLLOWED BY ASIAN MARKETS WHICH WERE LOWER BY NEARLY 4% WE EXPECT INDIAN MARKETS TO OPEN BELOW 2600 LEVELS , TODAY WE WOULD ADOPT " REST DAY" AS THE MARKETS CAN BE HIGHLY VOLATILE , WE CAN EVEN SAY MARKETS ARE PUZZLED AS THEY ARE OVERSOLD BUT NO BUYING COMING FROM ANY PARTS, WITH INFLATION DATA COMING LATE TODAY SOME RECOVERY ALONG WITH SHORT COVERING MAY ARISE , OVERALL WE ARE NEGATIVE ON MARKETS , WE ARE NEGATIVE ON BANKING AND ICICI IS THE BEST BET TO SHORT , REALITY IS ONE COUNTER WHICH MAY TAKE BEATING TODAY IN EARLY TRADE
NIFTY 2600 NOV CALL (BUY) 50-58 (Target1) 75 ( Target 2) 90 (Sl) 45
The support for the Sensex is 8649-8393 and the resistance to the up move is at 8940-9130
Nifty: (2619) the support for the Nifty is at 2542-2464 and the resistance to the up move is at 2680
Everyone believed a positive closing yesterday with the way the market moved till afternoon , if not positive then flat but markets with no buying support closed in negative with almost 2% losses . European indices caused panic in Indian markets as they all traded in red
US markets the world market leaders lost more than 5% yesterday with no coclusion on AUTO bail out
Asian markets opened lower but are in the path of recovery but it will be wise to watch out the points before our market opens
Indian markets are expected to open lower and may trade below 2600 in NIFTY ,markets may be volatile & BANKS & REALITY may be under selling pressure , One can short on ICICI bank today . With inflation data coming in after noon we may see slight short covering and if European markets support we may close the day with 1-2% losses
Overall we expect " BEARS DAY OUT" also , we would advice traders to take rest or adopt waith and watch policy
Interest in India is still intact. Well that’s true, billions of dollars of outflow in recent months notwithstanding. If the turnout in the recent equity conferences on India is any indication, the country does not seem to have fallen way off the radar of foreign investors. Quite a few international financial majors that have their stock broking arms in India have held their India centric conferences both in India as well as abroad and the response, as per a leading business daily, has been quite impressive. Corporates, hedge funds and long-only investors emerged as the major participants in these events.
Although conscious of the fact that valuations in the country have turned quite attractive, these investors wanted to wait for macro stability to emerge before they could start investing in India again. The credit related fire that has singed major economies across the world has also impacted India. But thanks to its relatively lower dependence on exports and a strong internal market, the economy is still expected to pull it through with growth in the region of 6% to 7%. This coupled with cheap valuations is likely to attract foreign investors sooner than later.
The country’s largest two-wheeler manufacturer, Hero Honda Motors Ltd beat analyst forecasts posting a net profit of Rs306.30 crore for the quarter ended 30 September, a 50% increase over the corresponding period last year. The biggest chunk of the company’s boost in performance has come from its bread and butter segment — the 100 cc bikes category. Cumulatively, for the April to September 2008 period, Hero Honda registered a 20.2 per cent growth in unit sales in the motorcycles with engine capacity between 75cc and 125cc category, according to statistics provided by the Society of Indian Automobile Manufacturers (SIAM).
So, Hero Honda has proved that big is not good, but small is beautiful. As you know, this fincancial year is the 25th year of the company. This year in April, the company inaugurated its new plant at Haridwar where it is getting maximum tax benefit. It has number of strong brands like CD Deluxe, Glamour, New Splendor NXG, Splendor plus and Passion Plus. Also, in premium segment ther is Hunk, CBZ X-treme and Karizma. Hero Honda’s results are giving hope that the recession in this two wheeler auto sector is near to end.
The stock has remained strong even when the market crashed. Infact, it touched a new high at Rs. 735 in October, when most of the stocks were showing 52 week lows. At current level of Rs 720, it is more attractive. Hold the scrip and add more at more decline.
Sujana Towers is basically engaged in manufacturing of galvanized steel towers used in the power transmission and telecom tower sectors. Hence it is definitely going to benefit from the recent fall in steel, zinc and other commodities as they form the major part of the input cost. It has set up two large scale units at Hyderabad to emerge as India’s largest galvanized steel tower manufacturing company. It has expanded its towers capacity at Hyderabad from 28,125 TPA of galvanized towers to 128,125 TPA.
In the light of fast growing demand for supply of power transmission and telecom towers and associated services within the country as well as in the neighboring countries, it is in the midst of setting up another 100,000 TPA manufacturing facility at Chennai in order to cater to the domestic and export market. It also intends to set up / acquire subsidiaries in the Middle East/ South East Asia in the area of power transmission and telecom infrastructure services. Recently, it acquired 51% shareholding in Telesuprecon Ltd (Mauritius), undertaking Telecom infrastructure contracts in various cast / central African countries.
For the trailing twelve months ending June 2008 it report total revenue of Rs 582 cr and profit of Rs 46 cr i.e. EPS of Rs 11 on current equity of Rs 20.70 cr. From a high of Rs 235, scrip has been reduced to less than 10%. Worth a punt at current levels of Rs 19.
Farsi block of OVL, ONGC’s 100% subsidiary, has secured the feasibility nod from the Iranian government.
OVL wins two oil and gas blocks in Colombia.
Reliance Industries is looking to raise Rs50bn from LIC.
ICICI Bank halves its target for loan growth to 15%.
BHEL bags an order worth Rs13.25bn from Andhra Pradesh Power Generation Corporation.
DLF defers projects, reduces manpower as demand slumps.
Sobha Developers pledges 5.9% stake to Switzerland based Bank Sarasin.
Jindal Steel & Power not to cut production and to go ahead with capex plans.
Infosys and Wipro are evaluating SAP service providers, such as BearingPoint and IDS Scheer AG, for a potential acquisition.
TCS opens fourth global delivery centre in China.
L&T bags Rs7bn order for hydrogen generation units.
NMDC may cut local iron ore contract prices.
NMDC seeks foreign partner for Bengal coal project.
Essar Oil has failed to complete financial closure of its refinery expansion project.
United Spirits plans to introduce two more variants of whisky from the collection of Whyte and Mackey brands in the country.
Parsvnath forms JV with Spanish company to bid for infrastructure development projects.
Ess Dee Aluminium buys 90% stake in India Foils for Rs1.2bn.
Godrej group is scouting for acquisitions in emerging markets.
Panatloon Retail pulls out of Alpha Future Airport Retail JV.
SEBI settles insider trading case of Apollo Tyres on payment of consent fee of Rs10mn.
RPG Enterprises to invest Rs15bn in next 15 months in expanding its retail business across India.
Adani group signs pact to develop auto hub at Mundra port.
Educomp is looking to buy more pre-school chains next fiscal.
Allcargo will renew its Rs3bn capital expenditure plan.
Gati to increase tariffs by 5-10% by January.
New rules for stock lending and borrowing will be in place within a month, says Sebi.
Government has imposed an import duty of 5% on some iron and steel products and 20% on crude soyabean oil.
DGH not in favor of dual price policy for oil and gas producers in the country.
FM asks India Inc to cut prices to spur demand.
Government is examining the possibility of notifying jet fuel as a ‘declared good’.
Allahabad HC refuses to pass any interim order staying the sugarcane SAP.
Government may cut fuel prices by December end.
Government to inject Rs500bn in infrastructure projects.
A likely beneficiary of the nuclear deal, Rolta India has posted a good performance for the first quarter ended 30th September 2008, but for the huge MTM forex loss. Consolidated revenue for Q1 FY-09, on a YoY was up 56.6% at Rs. 346.14 crores, while Q0Q, it grew by 7.8%. EBITDA on a YoY rose by 41.1% at Rs.118.46 crores which on a QoQ showed a growth of 5.6%. PAT before exceptional item was at Rs.85.25 crores, up YoY by 58.4% and by 5.2% on a QoQ basis. YoY it fell 56% while QoQ it fell 53% at Rs.23.90 crore.
The MTM loss is on the US$150 million FCCB which is due for maturity only in June 2012. How is that possible? The company has explained that it operates in unique segments like infrastructure, defence, geo-space, and engineering and is therefore not affected by the banking and insurance slowdown. The company’s current order book position stands at Rs.1,500 crore. Rolta is one company which is expected to benefit from the nuclear deal, mainly due to its JV with the Shaw group, which has a 70-80% of the world market for nuclear power plants design and for installation and commissioning. But the revenue from this is expected to come in only after the next 18-24 months. All to all at CMP 170 we a HUGE UPSIDE POTENTIAL !
Company, which was renamed as Richa Industries by changing its previous name Richa Knits is a processing and readymade garment making company. Performance of the company even during current market recession is very good. Stock price has improved by 120 per cent during crash in the market.
Income of the company increased by 180 per cent during quarter ended in September, 2008. Company has earned net profit of Rs. 3.96 crores on the gross revenue of Rs. 42.99 crores. Top line of the company is expected to go up to the level of Rs. 162 crores during FY 2009-10 and bottom line up to the level of Rs. 15 crores. Investors may grab opportunity to invest in the stock at CMP Rs 61.
* When biggies like Tata and Birla failed to raise money through rights issues, how can a small pharma company like Syncom Formulations to come out with right issue in such sentiment? Is it finding it difficult to raise debt from banks despite being a low debt company?
* It appears that on pressure from FCCB holders, Core Projects has halved the conversion price of FCCB from Rs.165 to Rs.82 per share recently. Will FIIs exit even now?
* Stay away from shipping companies like Mercator Lines, GE Shipping, SCI etc. They may continue to fall on the back of the unprecedented fall in the Baltic Freight Index.
* There is a mixed opinion about the Indian banking sector among experts. Retail investors are confused whether to buy or sell banking scrips.
* Sybly Industries quoting at Rs.3.20 with face value of Rs.10 has fixed record date for stock split to FV of Rs1. A great joke indeed!
* Bayer Crop Science is being recommended for long-term as present valuations are attractive considering future earnings potential.
* Vijaya Bank at current levels is attractive for the medium-term.
* Deepak Fertilizers is likely to post an EPS of above Rs.15 for FY09. The stock has potential to appreciate at current levels.
* With a likely EPS of Rs.45 in FY09, the shares of Surya Pharma are an excellent buy. It posted an EPS of Rs.32 in FY08.
* LIC Housing Finance is recommended as it may post an EPS of Rs.58 in FY09 as against Rs.46 in FY08. Scrip may touch Rs.350 in the short-term.
* Polyplex Corporation is being mopped up by knowledgeable persons on exploitation of Rs.65 EPS in the current year.
* Numeric Power is all set to post an EPS of Rs.70+. Given its tiny equity of Rs.5 cr., it is an ideal bonus candidate.
* Ajanta Pharma is a safe pharma bet and is all set to post an EPS of Rs.25 in FY09 post expansion.
* IFB Agro can be bought for decent long-term gain as its vodka is doing well.
* With a likely EPS of over Rs.25 in FY09, Goa Carbon is an excellent medium-term buy.
* With a captive iron-ore mine, mega expansion plans, foray into power, backward integration through group company merger, coal linkages and excellent demand for its products, Ramsarup Industries can fetch handsome gain in the long-term.
* With its expansion completed in September 2007, Insecticides India is doing well. With a projected EPS of Rs.16, the share can be bought for steady appreciation.
* Deep Industries and IDFC are being accumulated by punters.
* Godawari Power, which posted an EPS of Rs.35, has been allotted 2 iron ore mines and 2 coal mines for captive use and which are likely to become operative by FY10. Analysts project an EPS of above Rs.55 in FY09 and Rs.70 in FY10.
Infosys Technologies maintains its quarterly and FY09 revenue guidance.
Air India to receive a US$1bn loan and Jet Airways is close to striking a deal for a Rs5bn loan from Indian Overseas Bank for aircraft funding.
Five state-owned entities have come together to lend about Rs8bn to Gammon Infrastructure Projects Ltd for setting up container terminal at Mumbai port.
Unitech Ltd to sell its 200-room budget hotel Courtyard by Marriott in Gurgaon ahead of its inauguration in January 2009.
Unitech plans to sell all its six hotel projects under construction in Gurgaon and Kolkata, to reduce its capital expenditure and raise cash to fund its other ongoing projects.
Unitech repays Rs2bn loan to Indiabulls Financial.
Holcim may review the current capacity expansion projects in India amid global slowdown and poor pricing situation.
Cairn India Ltd has approached the Petroleum Ministry to take an early call on the refineries it will nominate to lift Rajasthan crude.
L&T has bagged four contracts worth Rs16.37bn from HPCL-Mittal Energy and Hyderabad Metro Water Supply.
UTV is shutting down its Delhi operations to cut costs.
Reliance Industries is keen to sell products in the domestic markets from its existing export oriented refinery and the soon to be commissioned refinery at Jamnagar SEZ.
Suzlon Energy is foraying into solar energy sector and has identified sites in Gujarat and Rajasthan.
The three media companies TV18, Dow Jones and Lokmat seek FIPB nod for expansion.
Bharti Airtel has launched VeriSign Identity Protection (VIP) services for its enterprise customers in India.
Ispat Industries may cut as much as 40% of its production as demand slumps from Ashok Leyland and Tata Motors.
Infosys eyes US$600-700mn acquisitions in Europe and Japan.
JSW Steel has tied up with UK-based Severfield-Rowen to float an equal-stake joint venture company for manufacturing construction steel.
The Government may allow Gail India and NTPC to keep 5mtpa LNG terminal as an integral part of the 1,850MW power project.
Vijay Mallya is likely to divest 15% stake in United Spirits to the world’s largest liquor manufacturer, Diageo.
Tata Chemicals plans to ramp up its current capacity in Gujarat by 66%, from 0.9mtpa to 1.5mtpa, in a phased manner.
Coal India Ltd to finalise the deals to develop seven underground and 19 abandoned mines in next six month's time.
Jubilant Organosis has acquired Canada-based TrialStat Clynical Analytics for a consideration of Canadian dollar 0.75mn.
Odyssey puts on hold expansion in new cities.
Tata Investment Corp. Ltd has approached shareholders seeking their approval to make provisions for up to Rs1.35bn for current and future diminution in value of investments.
General Motors Corp to raise US$230mn by selling its 3% stake in Suzuki Motor Corp.
GVK Power plans to divest 25% stake in its energy business, valued at ~US$500-700mn.
Ranbaxy expects early resolution to USFDA ban.
Oil PSU employees have deferred their proposed indefinite strike by one week.
Rio Tinto and ArcelorMittal, and domestic majors including RNRL, Sterlite, Essar and JSW Steel have evinced interest in reviving 18 abandoned mines of Coal India.
SBI, ICICI Bank and PNB have raised non-resident deposit rates.
Bhoruka Power plans to raise second round of PE investments in the next year in a bid to increase its installed power generating capacity in renewable energy sector to 300MW by 2012.
Himatsingka Seide has paid Rs92mn to HDFC bank to settle dispute over a foreign exchange derivative contract.
Mutual funds have borrowed about Rs110bn until Friday from banks through the special repo window to tide over the liquidity crisis.
The government is working on a fiscal package for exporters and reviewing the target of US$200bn for this fiscal.
USFDA to set up office in India by September 2009.
Banks hike NRI deposit rates by 75 basis points.
Major public sector banks expect loans for purchase of cars and other passenger vehicles to grow 20-25% in the current fiscal.
The Government may increase period for post-shipment credit by another 30-60 days and is also reviewing refund of Rs12bn of terminal excise duty to exporters.
Group of Ministers will meet today to decide on FIIs being allowed to acquire a higher stake than the set FDI limit.
The Petroleum ministry will soon seek the approval of the cabinet for rig holiday to oil exploration and production companies.
India will have power capacity addition of 13,000 MW by FY09 against the capacity addition of 7,300 MW in FY08.
NIFTY 2900 NOV CALL (BUY) 70-76 (Target1) 83 ( Target 2) 96 (Sl) 57 ( BUY 02 LOTS ) (HOLD ON FOR SHORT TERM TARGET OF 121 )
NAGARJUNA FERTILISER (BUY) 16 -16.5 (Target1) 17.7 ( Target 2) 18.2 (Sl) 15.20 ( BUY 1000 SHARES )
TANLA SOLUTIONS (BUY) 98-101 (Target1) 105 ( Target 2) 108 (Sl) 95.5 ( BUY 100 SHARES ) ( TARGET OF 120 IN 06-08 TRADING SESSIONS). Tanla Solutions Has Fallen Since Our Recommendationson 05 Nov Due To Poor Sentiment In The Markets. But We Reiterate Our Recommendation On The Stock For A Target Of 120-150 In 03 Months Period. The Volumes Are Dried Up And One Can Average The Stock In A Range Of 65-75 Levels And Keep Patience For A Period Of 03 To 06 Months.
Fundamentally Sound Stock And Despite Economy Slow Down It Has Given Good Q2 Results.
DISCLAIMER
All the advises,calls,tips and predictions are neither an offer nor a solicitation to purchase or sell securities.The information and views given by writer is believed to be reliable but no responsibility (liability) is accepted for error of facts and opinion.Writer may be trading in or having positions in stock markets.
Dear Investors,
NIFTY 3000 DEC CALL (BUY ) 63-65 (Target1) 75 (Target2) 88 (Sl) 58 (BUY 02 LOTS)
VIL was incorporated on 18th June, 1981 as 'Visaka Asbestos Cement Products Limited'. With effect from 9th August 1990, the name of the Company was changed to Visaka Industries Limited. The Company is a Rs. 500 cr. turnover, multi product/location establishment, presently engaged in the manufacture of Building Products, Synthetic Blended Yarn. The Company's Building Product Plants (Asbestos Cement Sheets) are located at 7 different places. The Synthetic Blended Yarn factory is located at Nagpur in Maharashtra.
NIFTY 2900 NOV CALL (BUY) 24-28 (Target1) 33 ( Target 2) 45 ( Target 3) 56 (Sl) 20 ( BUY 02 LOTS ) 
We recommend a buy in Alphageo (India) from a short-term perspective. It is apparent from the charts of Alphageo that it has been on a long-term downtrend from its life-time high of Rs 1,078 recorded in early January. Since then, the stock has been forming lower troughs and lower peaks. During mid-September, the stock’s downtrend accelerated and it declined steeply. 
NIFTY 2800 NOV CALL (BUY) 17-21 (Target1) 33 ( Target 2) 45 (Sl) NO SL ( BUY 06 LOTS ) ( THIS IS SURE SHOT CALL, IF POSSIBLE HOLD ON TILL EXPIRY AND CAN BUY IN MORE LOTS ) 
WITH HUGE SELL OFF IN US MARKETS AND FOLLOWED BY ASIAN MARKETS WHICH WERE LOWER BY NEARLY 4% WE EXPECT INDIAN MARKETS TO OPEN BELOW 2600 LEVELS , TODAY WE WOULD ADOPT " REST DAY" AS THE MARKETS CAN BE HIGHLY VOLATILE , WE CAN EVEN SAY MARKETS ARE PUZZLED AS THEY ARE OVERSOLD BUT NO BUYING COMING FROM ANY PARTS, WITH INFLATION DATA COMING LATE TODAY SOME RECOVERY ALONG WITH SHORT COVERING MAY ARISE , OVERALL WE ARE NEGATIVE ON MARKETS , WE ARE NEGATIVE ON BANKING AND ICICI IS THE BEST BET TO SHORT , REALITY IS ONE COUNTER WHICH MAY TAKE BEATING TODAY IN EARLY TRADE
The country’s largest two-wheeler manufacturer, Hero Honda Motors Ltd beat analyst forecasts posting a net profit of Rs306.30 crore for the quarter ended 30 September, a 50% increase over the corresponding period last year. The biggest chunk of the company’s boost in performance has come from its bread and butter segment — the 100 cc bikes category. Cumulatively, for the April to September 2008 period, Hero Honda registered a 20.2 per cent growth in unit sales in the motorcycles with engine capacity between 75cc and 125cc category, according to statistics provided by the Society of Indian Automobile Manufacturers (SIAM). 
Sujana Towers is basically engaged in manufacturing of galvanized steel towers used in the power transmission and telecom tower sectors. Hence it is definitely going to benefit from the recent fall in steel, zinc and other commodities as they form the major part of the input cost. It has set up two large scale units at Hyderabad to emerge as India’s largest galvanized steel tower manufacturing company. It has expanded its towers capacity at Hyderabad from 28,125 TPA of galvanized towers to 128,125 TPA. 
A likely beneficiary of the nuclear deal, Rolta India has posted a good performance for the first quarter ended 30th September 2008, but for the huge MTM forex loss. Consolidated revenue for Q1 FY-09, on a YoY was up 56.6% at Rs. 346.14 crores, while Q0Q, it grew by 7.8%. EBITDA on a YoY rose by 41.1% at Rs.118.46 crores which on a QoQ showed a growth of 5.6%. PAT before exceptional item was at Rs.85.25 crores, up YoY by 58.4% and by 5.2% on a QoQ basis. YoY it fell 56% while QoQ it fell 53% at Rs.23.90 crore.
