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Thursday, April 26, 2007
Market Close: Nearing 14390 our target But..
As VJ mentioned in Technicals that Sensex will see 14390 levels and it did. Indices opened Firm with Global support and surged higher in the early sessions. Indices shredded its early gains as investors were cautious about the FNO expiry and the much awaited result of RIL preferred to book profits at high levels. Market traded ranged but in green throughout the day. As the final hour of trade proceeded, markets became volatile swinging in both direction but eventually ended flat in green. Petroleum stocks were on fire in the later half on news that Committee may call for duty cuts on petroleum products. RIL which surged to its day high in early trade lost its ground after the mid sessions as investors were impatiently waiting for the biggie to announce its results. RIL did annouce its results but after the market hours which were good and above the market expectations. Engineering and selective Energy and Pharma stocks found interest from the investors but selling pressure was seen across the board with Cement and Banking stocks taking the major hit. Asian indices closed firm while the European indices are trading in green.
The Indian Rupee rose as high as 40.71 per Dollar in the early trades but it last traded at 40.90 a Dollar. Rupee rallied for past few days below 41 for the first time in nine years. and also rose by almost 8.4% against the Dollar this year, including a massive increase of about 3% in the past week. The central government is not intervening as of now as it wants to keep the inflation level below 6% and we expect the government to take some action by tommorow or by Monday. Inflation data is due tommorow and it is expected to come at 5.7%.
Sensex closed up by 11 points at 14228.88. It was helped up by gains in Grasim (2498.3999,+2 percent), Bajaj Auto (2491.3,+2 percent), HLL (214.7,+2 percent), TCS (1239.5,+2 percent) and Wipro (563.1,+1 percent). Restricting the gains were TISCO (560.45,-2 percent), Satyam (460.25,-1 percent), ONGC (960.35,-1 percent), Rel Energy (517.35,-1 percent) and Guj Ambuja (119.15,-1 percent).
Reliance Industries has once again come out with surprising quarterly result wherein the company posted Q4 FY2007 Net Profit of Rs 2853 cr vs Rs 2502 cr, up by 20.3% on yoy basis. Its Net Income was at Rs 25895 cr vs Rs 24542 cr on yoy basis. The Q4 Gross Refinery margins hits USD 13/bbl vs USD 11.30/bbl in previous quarter of same fiscal. Its Q4 EPS was at Rs 20.50 and Q4 EBITDA Margin was at 18.1%. The company posted refining margin in Q4 at 10.8% versus 8.2% yoy. Its Petchem margin in the corresponding quarters were at 10.7% vs 12.1% yoy. Q4 Petchem revenues for the company were up 48.2% at Rs 10,670 Cr and refining revenues was also up 37.5% at Rs 29,069 cr. Its other expenditure in Q4 was at Rs 2434 cr vs Rs 3102 cr on yoy. The results were above market expectations.
SKF India the leader in global bearing industry as well as in Indian markets has delivered good results for the Q1 FY07. The company has registered Net profit of Rs 36.6 cr versus Rs 22.5 cr in the corresponding quarter previous year. The revenues were enhanced by 22% to Rs 360 cr on yoy basis. The operating margins stood at 17%. The company has announced the capex plan of Rs 150 cr in Uttarakhand. SKF has planned to set up a new manufacturing site in Haridwar, Uttarakhand. The new bearing factory is likely to increase the existing ball bearing capacity by more than 1/3rd fuelling the growing demand in the booming automotive and other key manufacturing sectors. The state of the art plant will be operational in March 2008 and is likely to employ over 300 people. SKF is very positive about the economic development in the country. Uttarakhand is an emerging industrial hub within the country. SKF?s strategic move to increase production capacity through the Haridwar plant signifies SKF's commitment not only to serve their customers effectively but also reinforces their leadership position in the Indian Subcontinent.
Ceat Tyres is likely to outsource tyres from China and Vietnam for sales in India. Ceat joined hands with two Chinese firms to outsource truck and bus radials. Earlier, the company had imported 100 odd tyres for quality and durability clinic tests for a six-month period. The company has been importing truck and bus radials from Pirelli's facilities in Egypt and Turkey. With import of tyres from China, the company decided to create two brands in the commercial vehicle tyre segment, to avoid cannibalization of the brands. The Chinese tyres will be branded as the 'Economy' range while the Pirelli tyres would be branded as 'Premium' range. The company has started importing OTR tyres (specific range) from Vietnam that will be further tested, on the basis of market feedback. At present the outsourcing of tyres (imports and local outsourcing) accounts to 20% of the company's total revenue and is likely to touch 25%, this fiscal. The growth is backed largely by the rupee appreciation and lack of a diverse tyre range in the domestic market. Tyre is not a branding business specifically for the Commercial segment where the products need to be self manufactured and catered to specifically to specific market conditions. This is not a good long term strategy for the CVs as the company would need to invest into manufacturing sooner or later. All tyre companies are seeing good interest. The tyre stocks closed in red, Ceat ended down by 4% and its peer Good year and Apollo ended down by 9.65% and 1.5% resp. but MRF managed to close up.
Technically Speaking: Expiry kept market ranged after strong opening. Sensex touched intraday high of 14383 and low of 14127. Sensex has almost reached our target of 14390, just short of 6 points. Immediate support is at 14075 and resistance at 14320. Market turnover stood at Rs 4465 cr. Overall breadth was in favor of Decliners where the Advancers stood at 1096, Decliners stood at 1473.
Sensex closes marginally above 14200
The trading session began with a positive gap of 55 points at 14273 and the Sensex surged to touch the day's high of 14384 in early trades on the strength in the global indices. The market held firm above the 14200 level amid substantial volatility for a major portion of the trading session. However, the market drifted into negative territory and touched an intra-day low of 14127 on hectic selling in metal, oil and consumer durable stocks. The Sensex managed to pare the losses towards the close and ended the session with small gains of 11 points at 14229. The Nifty closed at 4178, up 11 points.
The breadth of the market was negative. Of the 2,610 stocks traded on the BSE, 1,483 stocks declined, 1,049 stocks advanced and 78 stocks ended unchanged. Among the sectoral indices the BSE CD Index slipped 0.90% at 3738 followed by the BSE Metal Index (down 0.62% at 9958). On the other hand the BSE CG Index was up 0.91% at 9892 and the BSE Auto Index gained 0.75% at 4979.
Select blue chips notched up gains. Grasim rose 2.32% at Rs2,498, Bajaj Auto advanced 2.23% at Rs2,491, HLL climbed 1.66% at Rs215, TCS gained 1.53% at Rs1,240, Wipro advanced 1.28% at Rs563, L&T added 1.13% at Rs1,708 and Tata Motors was up 1.07% at Rs769. Maruti Udyog, NTPC and Ranbaxy ended with marginal gains. Among the laggards Tata Steel slipped 1.81% at Rs560 and Satyam Computer dropped 1.33% at Rs460. ONGC, Reliance Energy, Gujarat Ambuja, Hero Honda, HDFC, Hindalco, Reliance Communications and ACC ended with marginal losses.
Over 1.41 crore IFCI shares changed hands on the BSE followed by Orbit Corporation (90.35 lakh shares), Reliance Natural Resources (82.19 lakh shares), Teledata Informatics (75.71 lakh shares) and Tata Teleservices (20.12 lakh shares).
Value-wise Reliance Industries registered a turnover of Rs307 crore on the BSE followed by Indiabulls Real Estate (Rs228 crore), Orbit Corporation (Rs192 crore), Tata Steel (Rs77 crore) and Tata Teleservices (Rs69 crore).
Sensex retracts from two-month high, earns a handful of points
The market ended a shade higher today in volatile trade. Volatility worsened in the last one hour of trades due to the scheduled expiry of the April 2007 derivative contracts. Sensex heavyweights, Reliance Industries (RIL) and ICICI Bank, weakened in mid-afternoon trade, in contrast to their earlier firm trend.
The Sensex rose 11.11 points (0.08%), to end at 14,228.88. The S&P CNX Nifty rose 10.55 points (0.25%), to 4,177.85.
The market had pared gains shortly after surging in early trade, tracking an Asian rally. It had drifted further in afternoon trade. Later, a sell-off pulled the Sensex down 90.59 points, to 14,127.18, at 14:42 IST.
The Sensex had surged as many as 165.95 points, to 14,383.72, at the onset of trading, registering its highest level in more than two months, since 20 February 2007.
The Sensex fluctuated in a range of 256.54 points, between 14,127.18 and 14,383.72.
The market-breadth ended negative with 1,049 shares having advanced, 1,482 having declined, and 79 scrips unchanged.
The BSE clocked a turnover of Rs 4465 crore, much lower than Wednesday’s Rs 5198 crore.
Sectoral indices on BSE ended mixed. Some rose and some others declined. The capital goods index was the top-gainer, adding 89.06 points (0.91%), to 9,892.23. The auto index rose 37.08 points (0.75%), at 4,978.88. The healthcare index advanced 15.58 points (0.41%), at 3,847.10. The banking sector index, the bankex, rose 19.34 points (0.27%), to settle at 7,256.69.
The index for consumer durables was the top-loser. It eroded 33.90 points (0.9%), to 3,738.40. The metal index lost 62.06 points (0.62%), at 9,957.65. The IT index declined 3.08 points, at 4,958.64.
The small-cap and mid-cap indices edged lower. The BSE Small-Cap Index lost 57.69 points (0.82%), at 7,017.32, and the BSE Mid-Cap Index shed 17.30 points (0.3%), at 5,788.03.
Reliance Industries (RIL) dropped 0.6% to Rs 1590. The stock had gained as much as 1.5% in early trade, to a record high of Rs 1624.80. After trading hours, RIL reported 14% growth in net profit in Q4 March 2007 at Rs 2853 crore compared to Rs 2520 crore in Q4 March 2006, on the back of strong refining margins. The company said refining margins for the March 2007 quarter were $13 a barrel, higher than the benchmark Asian Dubai crack margin, which averaged less than $7 in the quarter.
ICICI Bank shed 0.5% to Rs 957, and was off the session’s high of Rs 994.30. As many as 3.4 lakh shares changed hands in the counter on BSE.
India's wholesale price inflation rate is forecast at 6.09% for the 12 months to 14 April 2007, unchanged from a week earlier. The data will be released around noon on Friday. The annual rate hit 6.69% on 27 January 2007, its highest in more than two years, but has moderated after the central bank tightened policy and the government cut duties on a range of items to rein in prices.
Grasim rose 2% to Rs 2495, in volatile trade. The stock had risen as much as 3.5% in early trade to Rs 2529, on the back of strong Q4 March 2007 numbers, which the company unveiled after trading hours on Wednesday. Grasim reported 80.5% growth in net profit in Q4 March 2007 at Rs 474.49 crore (Rs 262.74 crore). Net sales surged 36.2% to Rs 2493.75 crore (Rs 1829.78 crore).
Two-wheeler makers witnessed a divergent trend. Bajaj Auto rose 2.5% to Rs 2499, whereas Hero Honda dropped 1.3% to Rs 678.
ONGC dropped 2.3% to Rs 950, on profit-taking, after a recent surge. Ditto for Tata Steel. The stock was down 2% to Rs 559.10.
Some IT pivotals shrugged off the rupee’s surge. Wipro gained 1.4% to Rs 563.90 and TCS rose 1.4% to Rs 1239. i-flex gained 3% to Rs 2475. A stronger rupee directly impacts the revenue and profits of IT firms, as they derive a lion’s share of revenue from exports.
The Indian rupee rose as high as 40.71 per dollar on Thursday, as investors shrugged off worries about official steps to limit further gains in Asia's best-performing currency this year. It rallied past 41 on Wednesday for the first time in nine years. The rupee rose 8.4% against the dollar this year, including an increase of about 3% in the past week.
Refinery shares were in demand. HPCL rose 3.6% to Rs 271.85, Indian Oil Corporation gained 4.3% to Rs 431 and BPCL advanced 2.9% to Rs 338.10.
ABB rose 1.3% to Rs 4095, on the back of robust Q1 results. The company today reported 69% growth in net profit for Q1 March 2007 at Rs 86.63 crore (Rs 51.30 crore).
Siemens extended Wednesday’s post results rally. The stock surged 3% to Rs 1152.
Motor Industries Company (MICO) gained 1.3% to Rs 3405, after the company today reported 60% jump in net profit in the March 2007 quarter at Rs 183.80 crore from Rs 114.91 crore in the March 2006 quarter. Net sales rose 18.2% to Rs 1070.11 crore from Rs 905.16 crore.
Soda ash and textiles firm GHCL fell by its maximum daily limit of 10% to Rs 165.15, after market regulator Securities & Exchange Board of India (Sebi) barred some promoter group firms from dealing in shares due to abnormal dealings between November 2006 and March 2007. This is the first ever order based on an alert thrown up by Sebi’s recently instituted Integrated Market Surveillance System (IMSS).
Tata Tea rose 2.5% to Rs 793. Tata Tea said on Thursday its subsidiary, the Tetley Group, had agreed to buy the Vitax and Flosana trademarks in Poland from Premium Foods for an undisclosed sum. The combined turnover of Vitax and Flosana brands is $23 million, Tata Tea said in a statement. Vitax is a brand of specialty tea.
PSL jumped 8% to Rs 223, after it received orders aggregating Rs 1045 crore in April 2007, for onshore as well as offshore projects.
Eicher Motors lost 5% to Rs 260.55, after the commercial vehicles maker said it had acquired US-based Hoff and Associates and its two Chinese subsidiaries for $3.5 million.
Real estate developer Akruti Nirman dropped nearly 2% to Rs 389. The company on Thursday posted a net profit of Rs 57.18 crore on net sales of Rs 92.68 crore for the March 2007 quarter.
Kakatiya Cement Sugar & Industries jumped 10% to Rs 83.50. The company today reported a marginal growth in net profit in the March 2007 quarter at Rs 8.31 crore from Rs 8.27 crore in the March 2006 quarter.
Bilpower rose nearly 2% to Rs 187.70, after it reported a surge in net profit in the March 2007 quarter at Rs 7.75 crore (Rs 2.35 crore). Net sales surged to Rs 78.51 crore from Rs 41.19 crore.
Liberty Shoes dropped 4.5% to Rs 146. The company today reported 23% fall in net profit in the March 2007 quarter at Rs 4.48 crore (Rs 5.80 crore). Net Sales rose to Rs 67.01 crore from Rs 57.67 crore.
Software firm 3i Infotech rose nearly 3% to Rs 292.70, after it announced a 1-for-1 bonus issue and along with 82% rise in net profit in the March 2007 quarter.
Opto Circuits (India) rose 1.2% to Rs 334.05. The company said on Thursday it had agreed to buy two medical equipment firms in India. The companies -- Devon Innovations and Ormed Medical Technology -- make products such as catheters and dilator sets used in urology, gastroenterology and orthopaedics, Opto said in a statement.
Hotel Leelaventures dropped 0.3% to Rs 56.40. The company has reportedly paid a whopping Rs 200 per acre for a 3-acre plot in the heart of Delhi.
Idea Cellular dropped 1% to Rs 116.30. The company on Wednesday reported robust financial performance for FY 2007 (year ended 31 March 2007). Its consolidated net profit surged 137.6% to Rs 503.26 crore from Rs 211.77 crore in FY 2006. Revenue rose 47.5% to Rs 4412.93 crore (Rs 2989.88 crore).
Financial services firm Cholamandalam DBS Finance jumped 10% to Rs 115.05, after its net profit in the March 2007 quarter more-than- trebled to Rs 15.49 crore. Net sales also jumped to Rs 160 crore.
Nicholas Piramal dropped 0.3% to Rs 249.The company today reported a surge in net profit in the March 2007 quarter at Rs 54.95 crore from Rs 15.17 crore in the March 2006 quarter. Total income surged to Rs 645.21 crore from Rs 433.16 crore.
Sakthi Sugars dropped 3% to Rs 89.05, after reporting a sharp 73.5% fall in net profit in the March 2007 quarter at Rs 9.06 crore from Rs 34.16 crore in the March 2006 quarter. Net sales declined to Rs 206.24 crore from Rs 239.14 crore.
Suven Life Sciences ended flat at Rs 43.20. The company today reported 24% growth in net profit in the March 2007 quarter at Rs 2.81 crore (Rs 2.26 crore). Revenue surged to Rs 28.73 crore from Rs 19.56 crore.
The market received a boost early this week, when in its monetary policy announced Tuesday, the Reserve Bank of India (RBI) kept all policy rates unchanged. The RBI forecast that annual wholesale price inflation, which was running just above 6% in early April 2007, will be close to 5% at end-March 2008. RBI's forecast of GDP growth at 8.5% in the fiscal year ending March 2008, is lower than the 9.2% expected for 2006/07.
Corporate results announced so far, have been strong. After trading hours today, RIL reported Q4 results that beat market expectations.
The outcome of the ongoing seven-phased Uttar Pradesh assembly elections, is a key political event to watch out for. The assembly poll gets over in early-May 2007,. and the vote is seen as a barometer of national political trends.
FIIs have pumped money heavily into Indian stocks, this month. Their inflow picked up after IT major Infosys on 13 April 2007, issued a strong guidance for FY 2008, putting to rest concerns of a US economic slowdown on the IT sector. FII inflow for April 2007 (till 25 April) reached Rs 6514.20 crore. FIIs had pulled out a net Rs 1082 crore in March 2007.
Corporate results, FII inflow, RBI’s pause on rate hike and firm global markets helped the Sensex gain 1773.51 points (14.2% from a low of 12,455.37 on 2 April 2007. The Sensex had tanked 617 points in a single trading session on 2 April 2007, following the Reserve Bank of India (RBI)’s surprise hike in interest rates announced after trading hours on 30 March 2007.
The major March 2007 quarter results tomorrow are that of Bharti Airtel and Ranbaxy Laboratories
Next week is a curtailed trading week as the market remains closed for two days in a row on Tuesday (1 May) and Wednesday (2 May) on account of a public holiday.
Trading Calls
Deepak Mohoni
Buy Praj Industries below Rs 487 with stop loss of Rs 482. This is a day-trading recommendation.
Buy IDEA Cellular below Rs 118.50 with stop loss of Rs 115.50. This is a day-trading recommendation.
Trading Calls
Ashwani Gujral
Buy Zensar Technologies with stop loss of Rs 260 for a target of Rs 430
Ashwani Gujral
Buy Zensar Technologies with stop loss of Rs 260 for a target of Rs 430
Rajat K Bose
Buy Karnataka Bank with stop loss below Rs 167 for target of Rs 178 & 181. This is a day-trading recommendation.
Buy Moser Baer with stop loss below Rs 352 for target of Rs 367, 374 & 380. This is a day-trading recommendation
Market may extend gains
The market may gain further ground, tracking firm global markets, and on good rollover of the contracts for April to the May 2007 series. FII inflow remains robust. April derivative contracts expire today. At end Tuesday (24 April), the rollover in the Nifty was about 40% and in stock futures it was about 43%.
The market received a boost early this week, when in its monetary policy announced Tuesday, the Reserve Bank of India (RBI) kept all policy rates unchanged. The RBI forecast that annual wholesale price inflation, which was running just above 6% in early April 2007, will be close to 5% at end-March 2008. RBI's forecast of GDP growth at 8.5% in the fiscal year ending March 2008, is lower than the 9.2% expected for 2006/07.
Corporate results announced so far, were strong. Grasim reported robust Q4 results after trading hours on Wednesday (25 April). The key Q4 result today is of index heavyweight Reliance Industries (RIL). The other major result is that of pharma major Cipla.
The outcome of the ongoing seven-phased Uttar Pradesh assembly elections, is a key political event to watch out for. The assembly poll gets over in early-May 2007. The UP vote is seen as a barometer of national political trends.
FIIs resumed buying on Tuesday (24 April) after turning sellers on Monday (23 April). They were net buyers to the tune of Rs 501.50 crore on Tuesday. FIIs have pumped money heavily in Indian stocks this month. Their inflow picked up after IT major Infosys on 13 April 2007, issued a strong guidance for FY 2008, puttting to rest concerns of a US economic slowdown on the IT sector. FII inflow for April 2007 (till 24 April) reached Rs 5552.70 crore. FIIs had pulled out a net Rs 1082 crore in March 2007.
Asia stocks rose on Thursday after strong profits from US firms eased fears on the outlook for corporate earnings, but the dollar sat near a record low to the euro on nagging worries of a slowdown in the US economy. South Korean stocks hit the latest in a string of record highs. It was up 0.8%. Key benchmark indices in Hong Kong, Japan, China, Singapore and Taiwan were up between 0.4 - 1.4%.
Figures for US durable goods orders came out stronger than forecast on Wednesday, but failed to fully dispel doubts about the strength of US growth that had been raised by weaker-than-expected housing data a day earlier.
The Dow Jones industrial average surged to a record high above 13,000 on Wednesday, driven by stronger-than-expected earnings, while the dollar slumped to a record low against a basket of major currencies after a tepid US housing report. The Dow Jones industrial average climbed 135.95 points, or 1.05%, to end at a record 13,089.89. Earlier in the day, it hit a lifetime intraday high of 13,107.45. The Standard & Poor's 500 Index shot up 15.01 points, or 1.01%, to finish at 1,495.42. The Nasdaq Composite Index jumped 23.35 points, or 0.92%, to close at 2,547.89.
London Brent crude, currently seen as more representative of global oil prices than US crude, inched 3 cents higher to $68.60, after spiking a day earlier when weekly data showed the 11th successive draw in US gasoline stocks.
Intraday Stock Ideas
NIFTY (4167) SUP 4143 RES 4196
BUY CAIRN (136.55)
SL 132 T 144, 146
BUY ITC (161.80)
SL 157 T 169, 171
BUY HEXAWARE (178.20)
SL 174 T 186, 189
SELL GAIL (283)
@ 286 SL 290 T 274, 271
SELL TATAELXSI (314.15)
@ 317 SL 321 T 307, 303
STRATEGY INPUTS FOR THE DAY
Reliance results and rollover reasons
“Waiting is a trap. There will always be reasons to wait. The truth is, there are only two things in life, reasons and results, and reasons simply don't count.”
The bulls have had things going their way and like we mentioned there appears no pause for the moment. After an impressive recovery on Wednesday we have another action packed day in store. The biggies of corporate India will declare their results while the F&O expiry will provide the choppiness. The mood has significantly improved after the weakness last month and the highly volatile few days earlier in the month. With over 8% gains, the bulls could slow down but not for the initial half at least. Strong global cues, a fine Asian market and the spillover effect of Wednesday's recovery could keep the indices healthy.
Reliance Industries is most definitely the stock to keep an eye on as it declares its earnings. India Infoline estimates RIL to record an increase of 11.6% in net sales in Q4FY07 compared to last year. In Institutional activities, FIIs were net buyers in cash segment to the tune of Rs5.02bn while in the F&O segment they were net buyers of Rs5.9bn.
Blue Star is reportedly planning to buy Bangalore-based electrical contractor Naseer Electricals for over Rs1bn.
Ceat Tyres is set to outsource tyres from China and Vietnam for sales in India. Ceat has tied up with two companies in China to outsource truck and bus radials, according to a report.
he board of directors of Sun TV Network Ltd is seeking permission from the shareholders for a stock-split.
Congestion at Australia's Newcastle port has spiked up bulk freight rates leading to Indian shipping companies moving up on the bourses. Global freight rates in the dry bulk segment further firmed up.
Asian stocks rose the most in a week as higher oil and metals prices lifted commodity producers and companies such as Honda Motor Co. reported improved profits. Japan's Nikkei 225 Stock Average rose 1.3 percent to 17,462.33, while the broader Topix index added 0.9 percent.
The Dow Jones hit an all-time high of 13,107, before closing at a record 13,090, up 136 points. Nasdaq added 23 points to close at 2548. Among the Indian ADRs HDFC Bank rose nearly 3% to $74.92 while ICICI Bank added 2.6% to close at $46.52. VSNL, Infosys, Satyam, Wipro and Dr.Reddy's gained between 1-2% each to $21.47, $53.59, $25.38, $16.49 and $17.40, respectively.
However, Patni Computers fell 3.7% to $25.50 after it declared its numbers. MTNL slipped 1% to $7.14. In the Indian market, the buzz is that MTNL may see added interest as one of the investors sees the stock rising significantly from these levels, according to a report.
Tata Tea rose almost 15% on reports that cola major Coca-Cola is planning to acquire US company Energy Brands International, commonly known as Glaceau, in which Tata Tea holds 30 per cent. However, we feel Tatas are unlikely to sell out their stake. So expect some cooling on this counter soon.
The rupee breached the 41 per dollar barrier for the first time since 1998. This could temporarily hurt the sentiment in export-related counters, especially IT.
Yet another attempt by the West Bengal government to resolve the ongoing imbroglio at Hindustan Motors (HM) Ltd Uttarpara plant failed.
HOW MARKET FARED
All eyes on RIL, F&O expiry
The bulls reigned supreme over Dalal Street as they made an impressive comeback on led by gains in Pharma and Real Estate stocks from days low. ICICI Bank, ONGC, M&M and Grasim were the prominent gainers today. Earlier, in the day, indices took a deep breath following a remarkable 208 points rally yesterday triggered by RBI’s decision to keep interest rates unchanged. Weak Asian markets also contributed towards a lower opening. However, short –covering ahead of F&O expiry on Thursday aided the bulls in late afternoon trades. Buying was seen in Banking, Auto, Oil & Gas and FMCG stocks were among the major gainers today. Finally, the BSE 30-share Sensex closed at 14218, up by 81 points and NSE Nifty was up by 26 points at 4167.
Healthy FII inflows, short-covering and the encouraging Monetary & Credit Policy kept the bulls in good spirits. However, Tech stocks were at the receiving following appreciation of Rupee against the Dollar.
Ranbaxy advanced by over 5% to Rs369.4 following media reports that the company has received US approval to sell Pravastatin Copy. The scrip touched an intra-day high of Rs372 and a low of Rs348 and recorded volumes of over 25,00,000 shares on NSE.
GTL added over 3% to Rs186, the company has recommended to buy back shares at Rs300 each and to spend Rs2.75bn to buy back the shares. The company recorded its Q4 results with profit at Rs283.9mn (up 282%) and revenue at Rs3.96bn (up 110%).
Fresh buying was seen in Cement stocks. ACC was up by 2% to Rs833, Mangalam Cement was up by 1% to Rs148 and Grasim was up by over 2% to Rs2438 ahead of its quarterly results to be announced later today.
Tech stocks closed lower after Rupee climbed for a fourth day on speculation that RBI will allow the currency to strengthen to curb inflation. Income from US constitutes around 60% for the tech companies. Rupee touched a high of 40.87 against the Dollar. Frontline stock Infosys slipped by 2% to Rs2019 and Satyam Computer was down by over 1.5% to Rs466. HCL Tech and Patni Computers were among the other major losers.
Real Estate stocks advanced further led by gains in Sobha and Parsvnath after RBI slashed the risk weight for housing loans of up to Rs2mn. Parsvnath Developers gained by 5% to Rs338, Sobha was up by 7% to Rs918 and Bombay Dyeing added 1.4% to Rs570.
Metal stocks witnessed profit booking. Tata Steel dropped by 1.5% to Rs571 and Hindustan Zinc dropped by over 4% to Rs654.
After an impressive recovery on Wednesday another action packed day with lots of news, especially results is on the cards. The mood seems to have improved after the highly volatile few days earlier in the month. Though the market may remain choppy with expiry of derivatives contracts for the month of April. The bulls may also be tiring a bit after over 8% gains in last two weeks. Reliance Industries is most definitely the stock to keep an eye on as it declares its earnings. As it is the index heavyweight, any movement in it is likely to have a bearing on the key indices today. India Infoline estimates RIL to record an increase of 11.6% in net sales in Q4FY07 compared to last year.
Insider Trades:
Tata Power Co. Ltd: Life Insurance Corporation of India from market has purchased 2.01% equity shares of Tata Power.
Sb&T International Ltd: Citigroup Global Mkts (Mauritius) Pvt Ltd from market has sold 715000 equity shares of Sb&T International on 17th April 2007.
Market Volumes:
The turnover on NSE was up by 1.7% to Rs110.8bn. BSE FMCG index was the major gainer and gained 2.52%. BSE Auto index (up 1.22%), BSE Bank index (up 1.06%) and BSE Oil & Gas index (up 1.38%) were among the other major gainers. However, BSE IT index lost 1.30%.
Volume Toppers:
IFCI, Nagarjuna Fertilizers, TTML, GTL, RNNRL, Indian Bank, SAIL, RPL, Idea, IBREAL, ITC, Tele Data Info, IVRCl Infra, Satyam Comp, IDFC, PFC, TCS and FSL.
Upper Circuit:
Ansal Infra, BBTC, Tanla, Shree Precoated, Tele Data Info, Marksans, SHIVVANI OIL and Sona Koyo.
Results Today:
RIL,ABB, Adlabs, Akruti Nirman, Balrampur Chini,Cipla, Deccan Aviation, Escorts, FSL, Hind Zinc, Jupiter Bio, KPIT Cummins, Sakhti Sugar, STAR and Wockhardt.
Delivery Delight:
ABB, Cipla, Corporation Bank, Hero Honda, HLL, HPCL, ICICI Bank, India Cements, IOC, M&M, Nagarjuna Fertilizers, ONGC, Ranbaxy, SCI, Tata Power and Tata Tea.
Abnormal Delivery:
VSNL, Union Bank of India, Rolta India, Tata Elxsi, LIC Housing Finance Ltd, Bajaj Auto, Reliance Capital, CEAT, Escorts and Indian Hotels.
Stock Futures with Largest Increases in OI:
Voltas, Alok Industries, Can Bank, PNB, JP Hydro, Balrampur Chini, Hindalco, Maharashtra Seamless, JSW Steel and Bajaj Hind
Stock Futures with Largest Decreases in OI:
OBC, M&M, Orchid Chem, Indian Bank, Gateway Distripark, Sesa Goa, Tata Tea, i-Flex, Gujarat Alkalies and LITL
Results Corner:
Grasim Q4 profit (up 80%) to Rs4.74bn, sales (up 36%) to Rs24.94bn and to pay Rs27.5 per share as final dividend
REL Q4 profit at Rs2.37bn (up 40%), revenue at Rs18.89bn (up 54%) and to pay Rs5.3 per share as dividend
Maharashtra Seamless Q4 profit at Rs530.7mn (up 26%) and sales (up 26%) to Rs3.67bn
Alfa Laval Q1 profit at Rs242.2mn (up 29%) and revenue at Rs1.61bn (up 11%)
GTL Q4 profit at Rs283.9mn (up 282%), revenue at Rs3.96bn (up 110%)
Godrej Consumer Q4 group profit at Rs393.9mn (up 28%), met sales at Rs2.42bn (up 26%)
NALCO profit at Rs5.91bn (down 2%) and sales (up 2%) to Rs15.66bn
Glenmark Q4 net income triples to Rs311bn and revenue almost doubles to Rs12.07bn
Brokers Recommendations:
Reliance Capital – Buy from Merrill Lynch with target of Rs850
Wipro - Underperform from CLSA with target of Rs575.
Long Term investment:
Infosys
Major News Headlines:
Aurionpro Solutions announces acquisition of E2E Infotech
EKC gets Rs2.2bn export order
Satyam Computer in accord with Temenos
Telecom Minister Dayanidhi Maran says MTNL should be more aggressive in overseas bids
L&T gets Rs2bn order for building project in Dubai
Ranbaxy receives US approval to sell Pravastatin Copy
Dr Reddy's gets nod from FDA for Zolpidem Tablets
Investsmart - Daily Morning Call - Apr 26
Market Grape Wine :
In House :
Today report of RIL , ABB & Cipla among major results .
IT to remain under pressure as Rupee still strong against the Dollar .
Buy : Grasim as good results both from cement and sponge iron units to see upside in medium term
Nifty at a support of 4120 & 4150 and resistance at 4200 & 4240 levels .
Buy : JSW steel
Buy : WockHardt looking positive
Buy : Glaxo & Lupin
Buy : Indiacement
Buy : Orchid chemical above 272 target 283 s/l of 267
Out House :
Markets at a support of 14104 & 13987 levels with resistance at 14325 & 14434 levels .
Buy : RIL & RElCap
Buy : I- Flex & Rolta
Buy : IDFC & IDEA
Buy : Praj & GlenMark
Buy : ICRA , GodfreyPhilip & Concor
Buy : JSW & Sail
Buy : SesaGoa & ABAN
Dark Horse : IFCI , Praj , Tisco ,TataTea, ABAN , JSW , Sobha & BanKIndia
Bullet for the Day : ONGC & Bharti with stop loss
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