India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Monday, November 20, 2006
Market ends flat
The market staged a smart recovery towards the close and ended flat after a sharp slump during intra-day trades saw the index drop nearly 229 points. The market was extremely choppy in early trades. After shedding nearly 40 points initially, the Sensex continued to be in the red and touched an intra-day low of 13200. However the market erases its losses amid selective buying in heavyweight, IT and tech stocks towards the close, and lifted the index to an intra-day high of 13463. The Sensex finally closed the session at 13431, up one point, while the Nifty gained three points to close at 3856.
The breadth of the market, however, was slightly weak with the losers outpacing the gainers in the ratio of 1:0.58. Of the 2,530 stocks traded on the BSE, 1,557 stocks declined, 910 stocks advanced and 86 stocks ended unchanged. Among the sectoral indices the BSE Metal index shed by 2.33% at 8585 while the BSE Bankex, the BSE CG index and the BSE HC index were down around 1% each. The BSE FMCG index, the BSE PSU index and the BSE Oil & Gas index ended with steady losses. However, the BSE TECk index and the BSE IT index gained nearly 2% each.
ACC dropped 3.75% at Rs1,056, HDFC Bank declined 3.52% at Rs1,086, Tata Steel lost 2.64% at Rs463, NTPC shed 2.45% at Rs136, Ranbaxy moved down by 2.18% at Rs382 and Maruti was down 2.14% at Rs870. Hindalco, L&T, ITC, ICICI Bank, Gujarat Ambuja Cements, Dr Reddy's, Cipla, SBI, Tata Motors and BHEL were down 1-2% each. ONGC, Grasim and RIL ended the day in the red. However, Bharti Airtel advanced by 3.98% at Rs604, HDFC jumped 3.58% at Rs1,665, Infosys rose 3.06% at Rs2,253, Reliance Communication added 2.39% at Rs409, TCS gained 2.01% at Rs1,114 and Hero Honda was up 1.81% at Rs706.
Over 38.92 lakh Deccan Aviation shares changed hands on the BSE followed by Development Credit Bank (35.25 lakh shares), IL&FS Investmart (34.64 lakh shares), Balrampur Chini Mills (33.07 lakh shares) and Hanung Toys (32.88 lakh shares).
Value-wise Mahindra Gesco registered a turnover of Rs256.28 crore on the BSE followed by Tech Mahindra (Rs135.32 crore), India Bulls (Rs99.57 crore), RIL (Rs99.54 crore) and Hindustan Zinc (Rs87.68 crore).
Flat end as late buying erases early losses
A solid intra-day reversal in heavyweights helped the Sensex to wipe out the early losses, after it had remained mired in the red for most part of the day.
The Sensex surged to 13,463.06, on the back of strong support from buyers. It had earlier tanked to 13,200.36, under severe selling pressure.
Technology stocks, along with Bharti Airtel and a couple of other blue-chips, aided the remarkable bounce back.
The Sensex finally settled 1.23 points higher, at 13,430.71. It had opened weak, at 13,390.95, and started declining since. The benchmark index oscillated 246 points for the day.
The S&P CNX Nifty rose 3.35 points (0.09%), to close at 3,856.15.
A weakness in Indian ADRs on Friday and mostly subdued Asian markets were responsible for the early sell-off on the domestic bourses. The Reserve Bank of India (RBI's)'s draft circular prescribing tighter guidelines for banks’ capital market exposure only provided fuel for the selling spree. Reports suggest banks will have to retrieve Rs 9,000 crore offered to stock brokers as loans, going by the new directions from the central bank.
The market-breadth, which was extremely bearish since the opening, kept on recovering throughout the day, but still ended negative. On BSE 1,530 shares declined, against 943 that advanced. As many as 64 shares were unchanged. The BSE Mid-Cap index was down 46.85 points (0.85%), to end at 5,454.43, while the BSE Small-Cap index lost 60.98 points (0.96%), at 6,298.49.
The total turnover on BSE amounted to Rs 4,242 crore.
Among the 30-Sensex pack, 19 declined while the rest moved higher.
Telecom services provider Bharti Airtel was the top gainer, up 6.10% to Rs 616.55, on a volume of 3.49 lakh shares. It had surged to a high of Rs 617 in finishing trade. The index pivotal also recovered from the day’s low of Rs 571.10. Within a short while of toppling TCS from the number five slot, Bharti Airtel today pipped NTPC to become the fourth largest in terms of market-capital. NTPC lost 2.4%, to settle at Rs 135.65.
At the end of today’s trading, Bharti Airtel enjoyed a market-cap of Rs 1,14,558.96 crore, compared to NTPC’s Rs 1,11,849.66 crore. The top three firms in terms of market-cap are ONGC, Reliance Industries and Infosys, all three in that order.
Housing finance major HDFC advanced 3.51% to Rs 1,664, on a volume of 1.67 lakh shares. It had surged to a life high of Rs 1,701, during the course of trading during the day.
Frontline IT stocks advanced on renewed buying. Infosys (up 3.24% to Rs 2,257), TCS (up 2.07% to Rs 1,115), Wirpo (up 1.31% to Rs 556.50) and Satyam Computers (up 1.96% to Rs 442) advanced.
India’s largest cement manufacturer, ACC, was the top loser, down 4% to Rs 1,053, after RBI restricted further FII purchases in the scrip as foreign holding had crossed the 22% ceiling.
Index heavyweight Reliance Industries (RIL) rose 0.38%, at Rs 1,264, on a volume of 7.97 lakh shares. The stock recovered from a low of Rs 1,236.50, after the company said that it expects a fire-damaged hydrotreater unit at its refinery in Jamnagar, Gujarat, to restart operations within a few days.
Tata Steel fell 2.70% to Rs 463.10, after its offer to buy Anglo-Dutch steel-maker Corus Group was topped by Brazil's Companhia Siderurgica Nacional (CSN). CSN has offered to pay 475 pence a share, 20 pence higher than Tata Steel, to Corus shareholders.
The Bankex suffered a steep fall as banking stocks were hammered following the Reserve Bank of India (RBI's) draft circular on exposure to capital market by banks. The BSE Bankex lost 1.81%, or 129.23 points, at 6,995.62. At one point of time the Bankex was down 3.50%.
Private sector banking major ICICI Bank lost 1.95% to Rs 857.75 on a volume of 6.59 lakh shares. HDFC Bank (down 3.60% to Rs 1,085.50), SBI (down 1.45% to Rs 1207.50), Centurion Bank of Punjab (down 2.87% to Rs 28.80), Kotak Mahindra Bank (down 2.85% to Rs 375.90), Allahabad Bank (down 3.11% to Rs 91.80), Vijaya Bank (down 2.20% to Rs 51.45), Union Bank of India (down 2.80% to Rs 132.50), and Canara Bank (down 2.40% to Rs 293.25) declined.
Metal shares also declined on profit-booking; the BSE Metal index down 2.33%, or 204.62 points, to end at 8,584.93. It was the biggest loser among sectoral indices. Hindustan Zinc (down 5.92% to Rs 840.25), Sterlite Industries (down 1.14% to Rs 506), Hindalco (down 1.77% to Rs 171.70) and Kalyani Steel (down 3.12% to Rs 409) and National Aluminium Company (down 1.11% to Rs 217.50).
Deccan Aviation lost 4.23% to Rs 141.45, amid reports that it had suffered a fall in market share in recent months. As per latest reports, Air Deccan’s market share has been declining despite the low-cost airline offering a large number of tickets at nominal prices of Rs 3 and Rs 9. After touching a high of 21.2% in June, the airline’s share registered an average of 19.3% in the second quarter of the current financial year, and further dropped to 18.1% in October 2006.
Newspaper publisher Deccan Chronicle Holdings slipped 3.52% to Rs 643, after its board approved the issue of 3.5 million shares at Rs 640 each, to qualified institutional buyers.
Development Credit Bank (DCB) advanced 2.13% to Rs 52.75, after its board approved a hike in Foreign Institutional Investors (FII) ceiling from the existing 24% to 49%. They also approved an issue of equity shares of an aggregate amount up to Rs 225 crore to Qualified Institutional Buyers (QIB).
Mphasis BFL jumped 6.78% to Rs 281, extending its recent rally on reports that it had bid for a large $2.4 billion contract along side EDS, its American promoter.
Orient Ceramics rose 5% Rs 121.55, after it said the board will meet on 28 November 2006 to consider an issue of bonus shares.
The Nikkei share average dropped to its lowest in a week on Monday, slipping 2.27% as technology stocks followed their US counterparts lower and investors sold Mitsubishi UFJ Financial Group and other major banks ahead of their earnings results. The Japanese Nikkei 225 index slipped 365.79 points, to 15,725.94.
The Hang Seng index lost 228.08 points (1.19%), to 18,954.63.
All European markets were trading with losses.
In a draft circular issued late on Friday, the central bank has restricted banks’ lending to a single borrower for subscribing to IPOs, to Rs 10 lakh. Advances other than IPOs to any borrower against security held in the physical and demat form, have been restricted to Rs 10 lakh and Rs 20 lakh respectively.
RBI has also stipulated a uniform margin of 50% on financing of all IPOs/issue of guarantees for capital market operations. The regulator has also proposed that banks must limit their capital market exposure to 40% of their consolidated net worth at the end of each March, when the financial year ends. It proposed treating investments in venture capital funds as capital market exposure. However, banks with sound internal controls and robust risk management systems can seek permission for the limits to be relaxed, it said.
As per provisional figures, FIIs were net sellers to the tune of Rs 88.70 crore on Friday (17 November), the day when the Sensex lost 76 points.
On Friday, the Dow Jones industrial average rose 36.74 points, or 0.30%, to finish at a record close of 12,342.56, which also marked its session high and a lifetime high. The Dow notched a sixth straight session of gains, its longest winning streak in a year. The Standard & Poor's 500 Index gained 1.44 points, or 0.10%, to end at 1,401.20. However, the Nasdaq Composite Index slipped 3.20 points, or 0.13%, to close at 2,445.86
Sensex flat
The market which was steeped in the red for a major part of the trading session, underwent a solid intra-day reversal in last minute trading. The Sensex surged to 13,463.06, on the back of strong support from buyers. It had earlier tanked to 13,200.36, under severe selling pressure.
Technology stocks, along with Bharti Airtel and a couple of other blue-chips, aided the remarkable bounce back.
The Sensex finally settled 1.23 points, higher, at 13,430.71. It had opened weak, at 13,390.95, and started declining since. It oscillated 246 odd points for the day.
A weakness in Indian ADRs on Friday and mostly subdued Asian markets were responsible for the sell-off on the domestic bourses. Also the Reserve Bank of India (RBI's)'s draft circular prescribing tighter guidelines for banks’ capital market exposure also contributed to the fall. Reports suggest banks will have to retrieve Rs 9,000 crore offered to stock brokers as loans.
The market-breadth, which was highly bearish since the opening, kept on recovering throughout the day, but still ended negative. On BSE 1,530 shares declined, against 943 that advanced. As many as 64 shares were unchanged.
The total turnover on BSE amounted to Rs 4,242 crore.
Among the 30-Sensex pack, 19 declined while the rest moved higher.
Telecom services provider Bharti Airtel was the top gainer, up 6.10% to Rs 616.55, on a volume of 3.49 lakh shares. It had surged to a high of Rs 617 in finishing trade. The index pivotal also recovered from the day’s low of Rs 571.10.
Housing finance major HDFC advanced 3.51% to Rs 1,664, on a volume of 1.67 lakh shares. It had moved in a broad range of Rs 1,587 – Rs 1,701.
Frontline IT stocks advanced on renewed buying. Infosys (up 3.24% to Rs 2,257), TCS (up 2.07% to Rs 1,115), Wirpo (up 1.31% to Rs 556.50) and Satyam Computers (up 1.96% to Rs 442) advanced.
India’s largest cement manufacturer, ACC, was the top loser, down 4% to Rs 1,053, after RBI restricted further FII purchases in the scrip as foreign holding had crossed the 22% ceiling.
Index heavyweight Reliance Industries (RIL) rose 0.38%, at Rs 1,264, on a volume of 7.97 lakh shares. The stock recovered from a low of Rs 1,236.50, after the company said that it expects a fire-damaged hydrotreater unit at its refinery in Gujarat to restart operations within a few days.
Tata Steel fell 2.70% to Rs 463.10, after its offer to buy Anglo-Dutch steel-maker Corus Group was topped by Brazil's Companhia Siderurgica Nacional (CSN). CSN has offered to pay 475 pence a share, 20 pence higher than Tata Steel, to Corus shareholders.
The Nikkei share average dropped to its lowest in a week on Monday, slipping 2.27% as technology stocks followed their US counterparts lower and investors sold Mitsubishi UFJ Financial Group and other major banks ahead of their earnings results. The Japanese Nikkei 225 index slipped 365.79 points, to 15,725.94.
The Hang Seng index lost 228.08 points (1.19%), to 18,954.63.
All European markets were trading with losses.
In a draft circular issued late on Friday, the central bank has restricted banks’ lending to a single borrower for subscribing to IPOs, to Rs 10 lakh. Advances other than IPOs to any borrower against security held in the physical and demat form, have been restricted to Rs 10 lakh and Rs 20 lakh respectively.
RBI has also stipulated a uniform margin of 50% on financing of all IPOs/issue of guarantees for capital market operations. The regulator has also proposed that banks must limit their capital market exposure to 40% of their consolidated net worth at the end of each March, when the financial year ends. It proposed treating investments in venture capital funds as capital market exposure. However, banks with sound internal controls and robust risk management systems can seek permission for the limits to be relaxed, it said.
As per provisional figures, FIIs were net sellers to the tune of Rs 88.70 crore on Friday (17 November), the day when the Sensex lost 76 points.
On Friday, the Dow Jones industrial average rose 36.74 points, or 0.30%, to finish at a record close of 12,342.56, which also marked its session high and a lifetime high. The Dow notched a sixth straight session of gains, its longest winning streak in a year. The Standard & Poor's 500 Index gained 1.44 points, or 0.10%, to end at 1,401.20. However, the Nasdaq Composite Index slipped 3.20 points, or 0.13%, to close at 2,445.86
Karvy Reports - Nov 20
Stocks you can pick up this week
KPIT Cummins
Research: Prabhudas Lilladher
Recommendation: Outperformer
CMP: Rs 587 (Face Value Rs 5)
12-Month Price Target: Rs 650
The company is set to achieve its targeted revenue of $100 million by FY07. From less than 10 customers a few years ago, to over 80 now, the company has done well in bagging some of the well-known names in the manufacturing and banking & financial services (BFS) verticals. It has also widened its scope in terms of service offerings — apart from IT solutions, it offers a variety of services such as consulting, engineering and business process outsourcing (BPO). The company’s revenue (at Rs 320 crore) and PAT (at Rs 32 crore) recorded a CAGR of 58.3% and 50.2%, respectively, between ’04 and ’06.
According to the company’s FY07 guidance, it is set to post a 34-40% growth in revenue and 51-61% growth in profit. Revenue for FY07 will be in the range of Rs 9.8-10.2 crore, while PAT will be in the range of Rs 1.1-1.2 crore.
Over the past eight quarters, the company has seen a 9% CQGR in revenue, primarily due to robust growth in volumes. Overall, the company’s future scenario appears to be fairly strong. At the current market price, the stock trades at 17.1 times and 11.6 times the expectations of its FY07 and FY08 earnings.
Provogue
Research: Karvy Stock Broking
Recommendation: Outperformer
CMP: Rs 380 (Face Value Rs 10)
12-Month Price Target: Rs 466
Established as a strong fashion brand, Provogue is now engaged in aggressively expanding its retail reach. Along with increasing its retail space, the company is increasing the number of store formats and product lines under the brand name ‘Provogue’.
It has also entered into multi-brand large format retailing under the brand name ‘Promart’. Leveraging on its retail expertise, the company’s wholly-owned subsidiary, Prozone, has adopted a business model to develop and actively manage malls.
The company has signed up six malls in tier-II cities, which are likely to be operational over the next three years. Prozone intends to bridge the gap between traditional property developers and modern retailers.
Liberty International, one of UK’s largest real estate companies with property investments of over £7.5bn, has entered into an agreement to take 25% stake in Prozone with an equity contribution of Rs 200 crore, thereby valuing Prozone at Rs 800 crore.
The DCF value for Prozone is estimated at Rs 130 per share. Valuing Prozone at Rs 130 per share, the core business of the company is available to Karvy at Rs 250, which is 14.8x FY08E. Karvy expect 51% EPS growth over FY07 and FY08. Based on 20x FY08E, the value of the core business stands at Rs 336 and DCF value of Prozone stands at Rs 130.
Thermax
Research: Edelweiss
Recommendation: Buy
CMP: Rs 367 (Face Value Rs 2)
12-Month Price Target: NA
Thermax’s Q2 FY07 results were in line with expectations in terms of revenues and above expectations in terms of profitability. On a consolidated basis, the company’s revenue grew by 21.2% y-o-y to Rs 520 crore. Sales from the energy segment grew by ~81% y-o-y, contributing 84% to the sales of the standalone entity in Q2 FY07.
EBITDA grew by ~140% y-o-y to Rs 72.1 crore, while net profit grew by ~147% y-o-y to Rs 53.7 crore on a consolidated basis for the quarter. The energy segment contributed ~90% and the environment segment contributed ~10% to the order book in the quarter.
On a standalone basis, the order book backlog was ~Rs 2,700 crore for Q2 FY07, with a similar breakup between the energy and environment segments as in the consolidated entity.
The consolidated order intake for the energy division was ~Rs 1,600 crore for the quarter, showing a growth of ~38% for Q2 FY07 and a strong growth ~179% for H1 FY07 y-o-y. With significant presence across various industry verticals, coupled with better operational efficiency than industry standards, Thermax remains one of Edelweiss’ top picks in the industrial machinery space.
3i Infotech
Research: Emkay
Recommendation: Buy
CMP: Rs 180 (Face Value Rs 10)
12-Month Price Target: Rs 232
3i Infotech has acquired 51% stake in US-based Professional Access for $12 million and will acquire the balance stake over two years. Professional Access specialises in the area of e-commerce for BFSI and retail segments. It has close to 500 employees with an offshore development centre in India.
It is a profitable company with PAT margin of 10% and annual revenue of $24 million. This acquisition will benefit 3i Infotech in the following ways: (a) Enter and penetrate the US market; (b) Tap large base of marquee clients such as Citibank, JP Morgan, Goldman Sachs and Duke Energy; (c) Access to global delivery centres and (d) Increase deal ticket size in the range of $5 million.
Rhyme’s acquisition will be EPS accretive for 3i Infotech from Q3 FY07 and Professional Access’ acquisition will be EPS accretive from Q4 FY07. With the continuation in growth, Emkay expects the company to post a CAGR of 60% in revenues and 60% in profit over FY06-08E.
Emkay expects forward EPS of Rs 14.3 and Rs 21 for FY07E and FY08E respectively. At current market price, the stock is trading at 13.1x and 8.9x FY07E and FY08E EPS respectively.
Usha Martin
Research: India Infoline
Recommendation: Buy
CMP: Rs 174 (Face Value Rs 5)
12-Month Price Target: Rs 228
Usha Martin posted strong results for Q2 FY07 with its performance improving on a sequential basis, while registering robust growth on a y-o-y basis. The sequential earnings growth was led by margin improvement, while the y-o-y earnings growth was driven by flattish interest, depreciation and lower taxes.
For H2 FY07, the company expects further improvement in operational performance with strong volumes and higher benefits from iron ore integration. The current FY07 valuations are similar to commodity steel makers like Tata Steel and SAIL, despite the company’s character of an alloy/special steel-maker, producing high value-added products like wires and wire ropes.
India Infoline feels the key reason for this is the company’s relatively lower margins, with lesser backward integration.
However, with increasing mineral integration over the next two years and relatively superior pricing power for its product portfolio, India Infoline expects significant upgrade in valuations. India Infoline believe the stock will trade at 7 times (factoring 0.5x multiple re-rating) FY08E EPS. i.e. Rs 228 one-year forward, representing 34% appreciation from current levels.
Indian MFs give highest returns
In the medium to long term, Indian mutual funds have rewarded their investors better than any other fund in world. Whether we look at a time period of 10 years, five years or three years, a majority of the ten best performing equity-oriented funds in the world are from India.
Over a 10-year period, Indian funds have grabbed eight of the top 10 ranks. Over the last five years, they account for seven of the top 10 and over a 3-year period, six of the 10 best performing mutual funds are from India. Russian funds are the only non-Indian funds in the top ten over a 10-year or 5-year period, according to a report by Lipper, a leading market research agency. Over 3-year period Russian funds give up the positions to funds from Korea and Norway.
If one takes a short-term view, there is no Indian fund among the top 10 global performers over last year (November 1, 2005 to October 31, 2006). This is despite the fact that the last twelve months have been among the best periods ever for Indian markets , with the sensex rising by 64.2%.
The best performer over the five and ten-year period is Reliance Growth Fund, which has given a compounded annual return of 71.38% and 35.21% respectively against the sensex’s improvement of 34.10% and 15.14% respectively. All returns have been calculated in dollar terms. In rupees terms, this means that if you had invested Rs 1 lakh in Reliance Growth Fund as on October 31, 1996, your investment would have increased by over 20 times to Rs 20.42 lakh. And, if you had invested the same amount in 2001, the amount would have increased by around 15 times to Rs 14.79 lakh.
The other top seven Indian funds in 10 years have also given compounded annual returns of over 30%. In the 5-year period, returns remained in the range of 57-70 %. In the back drop of around 34% and 15% returns from sensex during the 5- and 10-year period, the returns given by Indian mutual funds could be seen as very good, said a merchant banker.
According to the index prepared by Morgan Stanley Capital International (MSCI), over the 10-year period, the Russian market has performed better than India. While MSCI index of Russia improved by 22.29% in the last 10 years, the Indian market index went up by 18.65% per annum compounded annually.
Similarly, there are many markets like Brazil, Argentina, Mexico and Turkey, where returns according to MSCI are better than those for India. Yet, Indian mutual funds have performed much better then their counterparts in other countries.
CEO of an MF (did not want to be quoted) said for long term investment plans, funds avoid investing in momentum stocks which appreciate fast when market goes up but also fall steeply when it falls. So, they invest in stocks which are expected to perform continuously. That is why the long term performance of Indian MFs is good, but in short term it is not spectacular. Besides, he said, in the last one year as everybody was expecting a correction in the market, fund managers invested in those stocks that would not fall sharply with fall of market
Uncertainty may prevail in early trades
A look at how the indices fared at their closes: Sensex 13429.48 (-0.57%); Nifty 3852.80 (-0.62%); Nasdaq 2445.86 (-0.13%); Dow 12342.56 (+0.30%).
Uncertainty in the market is likely to prevail after the Sensex dropped over 76 points in its last trades. The market may witness strong intra-day volatile moves coupled with stock-specific action. Overnight fall in the US markets and major Asian indices, Nikkei and Hang Seng, dropping nearly 1% in morning trades. Amidst intra-day volatility, the market may recover from its lows at later stages of the trading, as the sentiment remains bullish on higher FII inflows into the domestic market and falling international crude oil prices.
US indices exhibited a mixed trend on Friday, with the Dow Jones moving up by 37 points to close at 12343 and the Nasdaq dropping three points to close at 2446.
Except Rediff, which was marginally up by 0.06%, all the Indian ADRs on US bourses ended in the red. Patni Computer was the biggest looser and dropped 4.03% while Dr Reddy's was down by 3.34%. VSNL, MTNL, HDFC Bank, ICICI Bank, Infosys, Wipro, Satyam and Tata Motors lost over 1-2% each.
Crude oil prices in the US market was marginally down, with the Nymex Light Crude oil for December delivery losing 45 cents to close at $55.81 a barrel. However, in the Commodity space, the Comex gold for December series added 80 cents to settle at $622.50 a troy ounce.
Market may turn volatile
A cautious start is likely on the bourses today following RBI’s draft guidelines issued late on Friday which are aimed at restricting an individual’s capacity to borrow from banks to invest in share market.
Volatility may set in the near term following a substantial build up of positions in the derivatives segment over the past few days. Investors are likely to book profit following a sharp surge in share prices in the past few weeks. Sensex is up almost 43% for calendar year 2006 so far.
RBI has proposed tighter guidelines for banks’ capital market exposure. In a draft circular, the central bank has restricted banks’ lending to a single borrower for subscribing to IPOs to Rs 10 lakh. Advances other than IPOs to any borrower against security held in the physical and demat form have been restricted to Rs 10 lakh and Rs 20 lakh respectively.
RBI has also stipulated uniform margin of 50% on all financing of IPOs/issue of guarantees for capital market operations. The regulator has also proposed that banks limit their capital market exposure to 40 percent of their consolidated net worth at the end of each March, when the financial year ends. It proposed treating investments in venture capital funds as capital market exposure. However, banks with sound internal controls and robust risk management systems could seek permission for the limits to be relaxed, it said.
As per provisional figures, FIIs were net sellers to the tune of Rs 88.70 crore on Friday (17 November), the day when Sensex had lost 76 points.
Meanwhile, Prime Minister Manmohan Singh said on Friday the country needs to have moderate tax rates and a high level of compliance to ensure a stable economic environment that will encourage growth.
Asian stocks fell on Monday, drawing no benefit from a drop in the oil price towards $58 a barrel after weak US housing data fuelled worries about the health of the U.S. economy, Asia's top export market.
On Friday, the Dow Jones industrial average rose 36.74 points, or 0.30 percent, to finish at a record close of 12,342.56, which also marked its session high and a lifetime high. The Dow notched a sixth straight session of gains, its longest winning streak in a year. The Standard & Poor's 500 Index gained 1.44 points, or 0.10 percent, to end at 1,401.20. But the Nasdaq Composite Index slipped 3.20 points, or 0.13 percent, to close at 2,445.86
Dalaal Street Flash News Recommendations
Jai Prakash Associates - Face Value - Rs 10 Buy Rs658
Suprajit Engineering - Face Value - Rs 5 Buy Rs 200
Pokarna - Face Value - Rs 10 Buy Rs 235.25
Thanks Vishesh
Subscribe to:
Posts (Atom)