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Thursday, November 23, 2006
Sharekhan Eagle Eye (equities) & Derivatives Info Kit for November 24, 2006
The Nifty traded sideways through the day and closed in negative territory...
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Sharekhan Commodities Buzz dated November 23, 2006
Gold and silver moved up in thin trading ahead of the Thanksgiving holiday due to the weakness in the dollar. The weekly initial jobless claims came in at 321,000 against an expectation of 310,000, while the University of Michigan index failed to support the greenback, as the index fell to 92.1 versus an expectation of 93, triggering fresh buying in gold.
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Sensex cools off from all time high
Sensex ended slightly lower today amid mixed trend in various constituents of the barometer index. The market-breadth weakened in the latter part of the trading session after being positive in the first half. For 1,324 shares that declined on BSE, 1,219 rose. As many as 68 shares were unchanged. Losers outpaced gainers by a ratio of 1.08:1. At about 13:31 IST, the advance-decline ratio measured 1.03:1.
Sensex closed 25.70 points (0.19%) lower, at 13,680.83. The S&P CNX Nifty shed 9.30 points or 0.24% to 3,945.45.
After a bout of early volatility, the Sensex had turned range-bound during mid-morning and early-afternoon trade. Volatility reared its head again in late-trading.
The bellwether index had surged to a life high of 13,790.82 in early trade.
The BSE clocked a turnover of Rs 5,531.48 crore, boosted by a large block deal of 92.7 lakh in the FII-segment in ICICI Bank, at Rs 880.50. On Wednesday, the turnover was Rs 5184 crore.
The market sentiment remains bullish due to strong FII inflow and upward revision in earnings growth guidance of corporates by brokerages on the back of strong Q2 results.
FIIs continue to mop up Indian stocks notwithstanding apprehension of stretched valuations. The cumulative FII inflow for 2006 has reached $8.3 billion compared to a record inflow of $10.7 billion in 2005. However, correction may be on the cards following a sharp surge Sensex in the past few weeks. Sensex is up 45.5% in calendar 2006 so far.
In the near term, the market would take cue from as to what extent the ruling government is able to pass some of the financial sector reforms. The winter session will debate, among other things, the Banking Regulation (Amendment) Bill. The Bill proposes to increase the voting rights of foreign stakeholders in private banks, which is capped at 10% now. However, the Left parties are opposed to amendment to the Banking Regulation Act, fearing that increase in voting rights in private sector banks will lead to a takeover of these banks by foreign entities. The winder session has just began and it will last for almost one month.
Volatility may take centrestage in the next few days ahead of expiry of November 2006 derivatives contracts next Thursday (30 November). On Wednesday 22 November, the open interest in NSE’s futures & options segment hit all time high of Rs 57,158 crore. The previous record high was Rs 56,991 crore of 27 April 2006. 46% of the open positions are stock futures and 22% are index-based futures.
Bharat Heavy Electricals gained 2.2% to Rs 2,516.80, having hit a lifetime during the day.
Tata Steel lost 0.3% to Rs 471.05. The stock weakened in the latter part of the trading disappointed by the board meeting in Mumbai, which got over today afternoon without making any pathbreaking announcement about the Corus impasse. The stock had firmed up to Rs 479.90 in early-afternoon trade, a gain of 1.5% for the day ahead of a board meeting to discuss the fallout of CSN's bid for Corus.
Reports say an announcement from the company on its bid for the Anglo-Dutch firm was unlikely after today’s board meet. The same reports also add that Tata Steel may bide time till CSN tenders a counter bid, formally. CSN had last week made an offer at 475 pence per shares for Corus, topping Tata Steel’s 455 pence per share proposal.
Hero Honda surged rose nearly 3% to Rs 749.90. The company’s managing director today said margins will remain under pressure in the second half of the year. Rival Bajaj Auto gained 1.6% to Rs 2,640.
Private sector bank HDFC Bank surged nearly 4% to Rs 1,120.
Zee Telefilms rose 3.5% to Rs 361, after its demerger scheme became effective from 22 November 2006. Zee Telefilms' demerger scheme was approved by the Mumbai High Court on 17 Nov 2006.
L&T gained 2% to Rs 1,402. In an analysts meet held on Wednesday, L&T said its sales will grow at a higher rate of 20% in October 2006-March 2007 period, compared to a growth of 12% in the first half of the financial year after it executes a large part of the orders in the second half of the fiscal ended 31 March 2006. The company also said these orders entail a healthy margin of 8.5%.
Siemens (down 4.5% to Rs 1270) witnessed a sell-off in mid-afternoon trade after its Q4 results hit the market in afternoon trade. It reported 32% growth in net profit for Q4 September 2006 to Rs 137 crore (Rs 104 crore). The growth was more or less in line with market expectations. Siemens also said it would sell 100% stake in Siemens Public Communication Networks to Nokia Siemens Networks India, an equal joint venture with Nokia. The company’s board also approved the proposal for transfer of its 'communication – enterprise networks division’ (COM EN) in favour of a new fully-owned subsidiary to be incorporated by Siemens AG, Germany, (SAG) in India for this purpose. This decision follows global restructuring of this business by the parent, the company said.
Cellular services major Bharti Airtel dropped 2.2% to Rs 624, on profit taking, after a recent solid surge. Satyam Computer also shed nearly 3% to Rs 463.50, due to profit-taking.
Oil exploration major ONGC shed 1.3% to Rs 845, following a drop in crude oil price to below $60 a barrel, on Thursday.
TCS shed 0.4% to Rs 1,140.90. Microsoft has bought 10% stake in TCS China, where Tata Consultancy Services (TCS) holds a majority 65% stake. Chinese partners -- Uniware Co and two software parks -- will hold the remaining 25%. TCS’ Chinese operations will be merged with the new venture.
Software major Infosys ended flat at Rs 2225. The stock had weakened since Tuesday's pricing of a $1.6 billion swap of local stocks into American Depositary Receipts.
Reliance Industries lost 0.6% to Rs 1270. As per reports, RIL may get seven blocks in the sixth round of the New Exploration Licensing Policy (NELP-VI). The bids for the sixth round had closed on 15 September 2006.
State Bank of India (SBI) rose 0.5% to Rs 1,256 after Managing Director Yogesh Agarwal said on Thursday it may revise upwards its target for 30% growth in loans for the year ending March 2007.
Aditya Birla Nuvo gained 3.4% to Rs 1115. The company said on Thursday its board has decided to issue 2 shares for every 17 held on a rights basis at Rs 793 per share. Following the rights issue, the equity will go up to Rs 93.32 crore from Rs 83.50 crore.
United Phosphorus rose 7.1% to Rs 314.10 after it bought the global propanil herbicide business of DowAgroSciences LLC for about $25 million.
Donear Industries rose 14.3% to Rs 107.85, a day after its founders sold shares to foreign funds.
Indo Rama Synthetics rose 3.5% to Rs 54.40 after the announcement of a board meeting on Nov. 30 to consider merging Indo Rama Petrochemicals Ltd with itself.
Hindustan Organic Chemicals jumped 7% to Rs 31.90. The stock rose on huge volume of 56.1 lakh shares on BSE. In a clarification regarding media reports, Hindustan Organic Chemicals (HOCL) today said the government has sanctioned a financial restructuring package of Rs 250 crore for the company.
Networking firm Gemini Communications jumped nearly 13% to Rs 257. It had secured a Rs 20 crore order for computerisation of village council administration in Tamil Nadu.
Hindustan Zinc lost 1.2% to Rs 911. The company said on Thursday it plans to enter wind power generation by setting up a 75 megawatt unit worth Rs 400 crore. The project could be located in Gujarat or Karnataka, the company said in a statement. The company also said it will invest Rs 777 crore for de-bottlenecking of its smelters, installation of equipment at mines, and setting up an 80 Mw power plant.
Petron Engineering Construction rose nearly 3% to Rs 179 after the company on Thursday received a contract valued at Rs 9.95 crore, from Indian Oil Corporation (IOC).
Market ends choppy
After gaining over 270 points in the last two trading sessions, the Sensex touched a new all-time high of 13790 in early trades. However the Sensex could not hold on to its gains and slipped in the afternoon. Select buying towards the close saw the Sensex pare some losses and end the session at 13681, down 26 points, while the Nifty shed nine points and closed at 3945.
The market breadth was marginally weak. Of the 2,617 stocks traded on the BSE, 1,319 stocks declined, 1,224 stocks advanced and 74 stocks remained unchanged. Among the sectoral indices the BSE FMCG index shed 0.90% at 1993, the BSE IT index declined 0.38% at 5135, the BSE HC index was marginally down 0.04% at 3720, the BSE Oil & Gas index declined 0.50% at 6194 and the BSE Teck index dropped 0.57% at 3560. However the BSE CG Index gained 1.17% at 9110.
Among the heavyweights, Satyam Computers tanked 3.18% at Rs463, Bharti Airtel dropped 2.37% at Rs623, Hindustan Lever fell 1.70% at Rs241, ONGC declined 1.3% at Rs845, Reliance Energy shed 1.23% at Rs546 and Tata Motors was down 1.16% at Rs823. ITC, Reliance Communication, Cipla, Reliance Industries, ACC, Wipro and ICICI Bank were down around 0.50% each.
Among the gainers the HDFC Bank soared 2.76% at Rs1,108, Hero Honda advanced 2.39%, BHEL rose 2.19% at Rs2,517 and L&T was up 2.15% at Rs1,403. Bajaj Auto, NTPC, HDFC and Maruti Udyog also notched up decent gains.
Select capital goods stocks attracted buying support. Praj Industries advanced Rs10 at Rs191, TRF gained Rs21 at Rs418, Areva spurted Rs43 at Rs910 and DS Kulkarni was up Rs16 at Rs344. ABB, Siemens, BHEL and Punj Lloyd also closed in positive territory.
K R Chokesy: Buy Mahindra & Mahindra
According to a release issued recently, the brokerage house said: "At current market price of Rs 835 and stand-alone earnings, M&M is quoting at a PER of 22.5x. On EV/Sales and on EV/ EBIDT basis it is quoting at 2.64x and 14.34x of its Sep TTM earnings,respectively.
"Going forward, revenues from its auto components business are expected to have major share in its consolidated results. After the listing of M&M Financial Services Ltd and Tech Mahindra (Mahindra British Telecom) , the company is planning to list more of its subsidiaries which would result into unlocking of its value in these companies. Thus, due to steady business and value accretive subsidiaries, we believe even though the company is fairly valued, investors can buy the stock."
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Do you have KR Choksey Reports ? Please send it to us ! dpstock @ gmail com
Chamatkar - Chakry - Rollover in process....
Microsoft picked 10% stake in TCS China which was followed by Tata Investment stake sell. In short RNT is for stake sell in TCS en route India, China, US or Mauritius on order to meet the Tisco costs. End of the day Tisco debt component will become manageable and analysts will be compelled to re-rate Tisco. I personally believe that Tisco has potential to cross Rs 800 in next 6 months. Sterlite, Hindalco and Tata Motors along with MTNL will remain our best picks.
Market corrected a bit because market was expecting big B kind action from RNT in Tisco board meeting which was a bit disappointment and speculators unwinding RIL positions once it failed to cross Rs 1290 decisively second time in 2 days. Well, we remain bullish not much worried about rollover though OI has crossed all time high at Rs 55000 crs. It includes Dec figures of Rs 9000 crs and options of Rs 19000 crs which was hitherto never crossed Rs 15000 crs. In May 06 it was Rs 15000 crs. The gross stock future is just Rs 25900 crs which is well below the May 06 figure and therefore I do not think so market is overbought though figures suggest artificially so. Manipulation of KEY nos is the history geography and science of Indian stock markets whether it is in term of nos or disclosure requirements. E g Exchanges requires small and retail investors to disclose all traders above .5% whereas FII buys bindhast without any disclosers because the penalty is just Rs 5000 for the same which are they are ready to pay on each trade and every day. Double standard is dangerous as well as against the interest of retail investors. Operators always manipulate various loopholes in law and take retail investors for ride such as the cash settlement is the derivative segment instead physical settlement which still proves that we will require another 20 odd years to match the global standards in reality though on paper our speed of globalization is largest. D mat scams, banking scams are happening here where penalty of Rs 116 crs is levied by the market regulators and going by past experiences the quantum of revenue loss could be at least 100 times bigger than the penalty figure. We have no option to carry on like this.
B gr stocks were smart movers today especially operators driven where the luring effect is quite large. At Chamatkar we have adopted the approach of bottom up stocks so that retail investors should not get stuck. We will continue to avoid all market friendly daily rising stocks which will correct over 50 to 100 pc once market loses its steam. In fact, few of old recommendation such as Uttam Sugar, Kothari Sugar etc have collapsed vertically though fundamentals do not suggest so. This is going to happen the end of every Bull Run and will not be an exception even this time. Therefore always try to exit as and when suggested by MB team.
Thanks Vinit
Sensex snaps 3-day winning streak
Sensex weakened in late trading amid volatility. Weakness in index heavyweight Reliance Industries (RIL) weighted on the bourses in late trading. Hero Honda and HDFC Bank surge at the fag end of the trading session.
The market breadth weakened in the latter part of the trading session after it held in positive zone in the first half of the trading session. 1324 shares declined on BSE as compared to 1219 shares that rose. 68 shares were unchanged. Losers outpaced gainers by a ratio of 1.08:1. At about 13:31 IST, there was an advance-decline ratio 1.03:1.
Sensex lost 25.70 points or 0.19% to settle at 13,680.83.
After a bout of early volatility, Sensex had turned range bound during mid-morning and early afternoon trade. Volatility stemmed in again in late trading.
Sensex had surged to a lifetime high of 13,790.82 in early trade.
The BSE clocked a turnover of Rs 5531.48 crore, boosted by a large block deal of 92.7 lakh in the FII-segment in ICICI Bank, at Rs 880.50.
Tata Steel lost 0.3% to Rs 471.05. The stock weakened in the latter part of the trading as no announcement stemmed from its board meeting in Mumbai which got over today afternoon. The stock had firmed up to Rs 479.90 in early-afternoon trade, a gain of 1.5% for the day ahead of a board meeting to discuss the fallout of CSN's bid for Corus.
Reports suggest that an announcement the company on its bid for Anglo-Dutch firm Corus Group Plc was unlikely after today’s board meet. Reports also add that Tata Steel might wait for CSN's formal bid before making an announcement. CSN last week made a counter offer at 475 pence per shares for Corus compared to Tata Steel’s offer of 455 pence per share.
Hero Honda surged rose nearly 3% to Rs 749.90. The company’s managing director today said its margins will remain under pressure in the second half of the year. Rival Bajaj Auto gained 1.6% to Rs 2640.
Private sector bank HDFC Bank surged nearly 4% to Rs 1120.
Zee Telefilms rose 3.5% to Rs 361 after its demerger scheme became effective from 22 November 2006. Zee Telefilms' demerger scheme was approved by the Mumbai High Court on 17 Nov 2006.
L&T gained 2% to Rs 1402. In an analysts meet held on Wednesday, L&T said its sales will grow at a higher rate of 20% in October 2006-March 2007 period, compared to a growth of 12% in the first half of the financial year after it executes a large part of the orders in the second half of the fiscal ended 31 March 2006. The company also said these orders entail a healthy margin of 8.5%.
Siemens (down 4.5% to Rs 1270) witnessed a sell-off in mid-afternoon trade after its Q4 results hit the market in afternoon trade. It reported 32% growth in net profit for Q4 September 2006 to Rs 137 crore (Rs 104 crore). The growth was more or less in line with market expectations. Siemens also said it would sell its 100% stake in Siemens Public Communication Networks to Nokia Siemens Networks India, an equal joint venture with Nokia. The company’s board also approved the proposal for transfer of its 'communication – enterprise networks division’ (COM EN) in favour of a new fully-owned subsidiary to be incorporated by Siemens AG, Germany, (SAG) in India for this purpose. This decision follows global restructuring of this business by the parent, the company said.
Cellular services major Bharti Airtel dropped 2.2% to Rs 624, on profit taking after a recent solid surge in the scrip. Satyam Computer also shed nearly 3% to Rs 463.50, due to profit-taking.
Oil exploration major ONGC shed 1.3% to Rs 845, following a drop in crude oil price to below $60 a barrel on Thursday.
TCS shed 0.4% to Rs 1140.90. Microsoft has bought a 10% stake in a new Chinese venture that is majority owned by Tata Consultancy Services (TCS). TCS will hold 65% the venture, which will be named TCS China. Three Chinese partners -- Uniware Co. Ltd. and two software parks -- will hold the remaining 25 percent. TCS’ Chinese operations will be merged with the new venture.
Cairn placing raises $822 mln ahead of India IPO
UK oil explorer Cairn Energy Plc
Cairn, which has about 90-percent of its value tied up in its Indian assets and is floating them on Indian stock markets, said it had placed 209.67 million shares at 176.48 rupees apiece, raising about 37 billion rupees, or $822 million.
Cairn said Malaysian state oil company Petroliam Nasional Berhad (Petronas) had bought 176.5 million of the shares, or about 10 percent of the expected share capital of Cairn India.
"This is the first public indication of support Cairn has had from industry, which is another tick in the box for shareholders; but in our opinion it makes a near-term takeover considerably less likely," Bridgewell Securities analyst Al Stanton wrote in a research note.
A spokeswoman said Cairn still expected to raise around $1.8 billion in total from the flotation but because the pre-flotation placing had gone so well, it was reducing the public offering of Cairn India shares to 328.8 million shares from 538.5 million.
Cairn said the placing price implied a market value of around 311.5 billion rupees, or $6.92 billion, for Cairn India.
The firm said it remained on track to complete the flotation in December.
Merrill Lynch and ABN Amro were joint co-ordinators of the placing.
Cairn shares closed at 19.18 pounds on Wednesday, valuing the business at about 3 billion pounds ($5.7 billion).
Be prepared for an opportunity
It is better to be prepared for an opportunity and not have one than to have an opportunity and not be prepared.
If we said be prepared for a correction, it would sure disappoint many. So call it opportunity for now. India's men in blue may have failed to fire in South Africa last night. But the bulls have been hitting master strokes in all directions sending the bears beyond imaginable boundary lines. The final Sensex score ended above 13,700 while the Nifty is closing in on 4,000. If the current momentum continues unabated, the Nifty may cross the landmark before the weekend break. Strong inflows from FIIs is powering the key indices higher despite repeated talk of overstretched valuations and a possible correction. The trend may continue for a few days if foreign capital inflows remain as robust as they are at present. However, some softening in the main indexes is not ruled out owing to profit booking. The F&O side of the market also looks overheated with the open interest crossing Rs550bn. Next week, we have the monthly expiry of derivative contracts. The market is bound to be volatile. The large caps are running faster than their small- and mid-cap peers. The broader market is still to catch up with their previous all-time high. Buying fresh at this juncture is fraught with a lot of risk though the long-term outlook remains bullish. Investors should keep booking small profits every time the market goes up sharply. Today, we see the market opening higher again, on the back of a positive trend in the Asian markets and overnight gains on Wall Street. Having said that we would still advise investors to remain on guard for any unexpected correction.
Siemens, Thomas Cook and BPL will announce their results for the July to September quarter.
Kinetic Motor and Kinetic Engineering could be in action due to a business restructuring.
FIIs were net buyers to the tune of Rs5.59bn in the cash segment yesterday on a provisional basis. In the F&O segment, they pumped in Rs6.88bn. On Tuesday, foreign funds pumped in Rs6.42bn in the cash segment. With this, their net investment in this month stands at $1.49bn after pouring in over $1bn in the previous three months. Mutual Funds were net sellers to the tune of Rs788.1mn on Tuesday.
In the US market, the Nasdaq surged to its highest level in nearly six years, after Dell's upbeat earnings helped spark a rally in technology shares. The positive momentum came as crude oil dropped.
But the blue-chip benchmarks languished before the Thanksgiving Day. Shares of GM fell on news that Billionaire investor Kirk Kerkorian, who failed to push GM into an alliance with Carlos Ghosn, cut his stake in the world's largest automaker by 25%.
With trading volumes thin ahead of the Thanksgiving holiday, the Dow Jones Industrial Average gained 5 points to 12,326. It earlier reached an all-time intraday high of 12,361. The S&P 500 rose 3 points to close at 1,406 and the Nasdaq advanced 11 points to 2,465.
All financial markets in the US are closed on Thursday for Thanksgiving, and close early on Friday, in what is expected to be a quiet session.
Weekly jobless claims rose by a greater-than-expected 12,000 last week to 321,000. However, the report still showed a healthy labor market. The November consumer sentiment index from the University of Michigan was revised downward to 92.1 from an initial read of 92.3. Economists had forecast that it would rise to 93.
US light crude oil for January delivery slipped 93 cents to settle at $59.24 a barrel on the New York Mercantile Exchange, following the release of the weekly oil inventories report. The front-month contract was quoting 8 cents down at $59.32 a barrel in extended trading in Asia.
Treasury bond prices inched higher, lowering the yield on the 10-year note to 4.56% from 4.57% late on Tuesday. COMEX gold rose 30 cents to settle at $629 an ounce.
Among the Indian ADRs, Infy rose 1.3%, Wipro surged by over 5%, Satyam climbed 4.7%, Tata Motors rose 1.15%, Dr. Reddy's advanced 2.1%, HDFC Bank added 1.7% and MTNL put on 3.3%.
European stock markets closed mixed. The pan-European Dow Jones Stoxx 600, which reached a six-year high early in the session, ended 0.1% lower at 359.55.
The German DAX 30 rose 0.2% at 6,476.13 while the French CAC 40 slipped 0.1% at 5,452.49. The UK's FTSE 100 lost 0.7% at 6,160.30.
In the emerging markets, the Bovespa in Brazil was up 0.8% at 41,912 while the IPC Index in Mexico added 0.4% to 24,674 and the RTS index in Russia put on 0.2% to 1703.
Asian stocks rose for a third day on Thursday, led by Australian financial companies, after Allco Finance Group said it may join Macquarie Bank and Texas Pacific Group to bid for Qantas Airways.
The Morgan Stanley Capital International Asia-Pacific excluding Japan Index gained 0.4% to 378.78 at 10:40 a.m. in Hong Kong. Markets in Japan are closed for a holiday today. The Hang Seng in Hong Kong is up 66 points to 19,316.
Singapore's Straits Times Index was set to close at a record for a second day. Stock indices rose in Asia, except in South Korea and the Philippines.
Major Bulk Deals:
Citigroup has bought Champagne Indage, Donear Industries, SpiceJet and Nitco Tiles; Bear Stearns has picked up Country Club; Merrill Lynch has purchased Donear Industries, Lloyd Electric and IFCI; Fidelity has bought Info Edge while ICICI Venture has sold it; ABN AMRO has sold Jain Irrigation; BNP Paribas AMC has picked up Milkfood; Fidelity has purchased NIIT while Deutsche Securities has sold it; Sundaram MF has bought Prithvi Info; Reliance Capital has picked up Rico Auto; Templeton MF has purchased Simplex Infra; Franklin Templeton MF has bought TRF while ACC has sold it; CLSA has picked up ICICI Bank while Crown Capital has sold it.
Market Volume:
The turnover on NSE was up by 15% to Rs104.63bn compared with yesterday’s trading session. Increase in the turnover was largely on account of huge block deal in ICICI Bank. BSE Capital Good index was the major gainer and gained 2.4%. BSE Auto index (up 1.15%), BSE Technology index (up 1.08%), BSE Pharma index (up 0.84%) and BSE PSU index (up 0.80%) were the other major gainers. However, BSE FMCG index lost 1.10%.
Volume Toppers:
IFCI, DCB, SAIL, Hindustan motors, Deccan Aviation, Satyam Computer, R Com, IVRCL Infrastructure, JP Associates, Zee Telefilms, Ashok Leyland, Bombay Dyeing, HLL, Unitech, Mahindra Gesco, Bank of India and NTPC.
Delivery Delight:
Amtek Auto, BEML, Bharti Airtel, Bombay Dyeing, BRFL, CESC, Crompton Greaves, Cummins India, D S Kulkarni, Dr Reddys Labs, Everest Kanto Cylinder, EXIDE Industries, Gujarat Ambuja Cements, Hindustan Zinc, Indian Hotels, Jaiprakash Associates, Jet Airways, Maharashtra Seamless, NDTV, Punj Lloyd, R Com, Siemens, Tata Motors, Wipro and Tata Power.
Brokers Recommendations:
Goetze India – Buy from Man Financial
Concor – Buy from Kotak
Long Term Investment:
Bharti Airtel
Major News Headlines:
Oracle defers open offer for i-flex by almost a month
Tata Steel & Tata Power agree to set up Captive Power plants
Siemens gets contract worth Rs40bn from Qatar
Engineers India bids jointly with Punj Lloyd for $1.6bn Libyan Refinery project
RIL shuts down Paraxylene unit for maintenance
Megasoft signs $1mn deal with Teletalk Bangladesh
Upmove may continue
The market crossed the psychological 13740 level in yesterday's trades and is likely to take further lead as buying interest continues in large-caps and several other sectoral counters. Overnight rise in the US markets coupled with steady opening for the Asian indices in current trades may augur well for the domestic indices. Among the key local indices, the Nifty could test higher levels around 3985 and has supports at 3930-3900 range. The Sensex has a likely support at 13625 and may face resistance at 13780.
US indices posted gains on Wednesday with the Dow Jones adding five points to close at 12327, and the tech heavyweight the Nasdaq ended eleven points higher at 2466.
Indian floats, too, were upbeat on strong domestic and US markets. Except Rediff and VSNL, all other Indian ADRs ended at higher levels. Wipro led the upmove and surged over 5% while Satyam gained over 4%, HDFC Bank, MTNL, VSNL, Infosys, Tata Motors and Dr Reddys gained over 1-2% each.
The Nymex Light Crude oil for January series declined by 93 cents at $59.24 per barrel. In the Commodity space, the Comex gold for December delivery flared up 30 cents to settle at $629.00 a troy ounce.
On Nov 21 2006, FIIs were net buyers of stocks to the tune of Rs642.30 crore (purchases worth Rs2,825.10 crore and sales of Rs2,182.90 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs78.81 crore (purchases worth Rs537.41 crore and sales of Rs616.22 crore).
Newspaper Roundup
ECONOMIC TIMES (www.economictimes.com)
* The Indian government may lift restrictions on the supply of indigenously produced liquefied petroleum gas for use in automobiles.
* Mumbai-based Hiranandani group plans to list on London's Alternative Investment Market to raise between $500-750 million to fund real estate projects. * Investment firm Blackrock-Merrill Lynch and Indian electronics firm Videocon Industries Ltd.
BUSINESS STANDARD (www.business-standard.com)
* State-run Steel Authority of India Ltd.
* Ashok Leyland Ltd.
FINANCIAL EXPRESS (www.financialexpress.com)
* LSI Logic Corp.
* China's Sany Heavy Industry Co. Ltd. <600031.ss> plans to invest 3 billion rupees in Maharashtra. The company manufactures and sells engineering construction machinery.
TIMES OF INDIA (www.timesofindia.com)
* The Indian government is planning to buy shares in State Bank of India
* The Indian government is likely to reduce luxury tax for the hospitality industry and sales tax on aviation turbine fuel. This has been planned to boost the tourism industry.
Man Financial - D.S. Kulkarni Developers
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Thanks Vishesh
Capital Market Telefolio Recommendation
BUY: Goodyear India at Rs 176
Now full details:
BUY : Goodyear India at Rs 176
BSE Code : 500168
NSE Symbol: Not listed
Market Lot: 1
A 74% subsidiary of Goodyear Tyre, USA, Goodyear India has posted remarkable
growth in the current year. With benefits of lower raw material prices
expected in future and buoyancy in auto industry, the company should witness
healthy growth in future as well.
Actual EPS for December 2005 : Rs 3.8
Projected adjusted EPS for December 2006: Rs 16.9
Projected EPS for December 2007 : Rs 22
Thanks Vishesh
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