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Sunday, January 25, 2015

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Indices scale record high on brighter economic outlook

International Monetary Fund (IMF) on 19 January 2015, announcing India's economy will be world's fastest-growing major economy in the year through March 2017, the European Central Bank (ECB) announcing a massive new bond-buying program on 22 January 2015, buying of Indian stocks by the foreign portfolio investors and positive outlook on the future of Indian economy propelled key benchmark indices to their record high. The barometer index, the S&P BSE Sensex marched past the 29,000 level for the first time in the history. The market gained in all the five trading sessions of the week.

There are expectations that inflows from foreign funds into India will rise after European Central Bank (ECB) on 22 January 2015, announced a massive new bond-buying program to boost sluggish eurozone economy.

The S&P BSE Sensex surged 1,156.95 points or 4.11% to settle at 29,278.84, a record closing high for the index. The CNX Nifty jumped 321.80 points or 3.77% to settle at 8,835.60, a record closing high for the index.

The BSE Mid-Cap index rose 0.58%. The BSE Small-Cap index gained 0.49%. Both these indices underperformed the Sensex.

Trading for the week began on a firm note. Pharma, cement and telecom stocks led the upmove as key benchmark indices edged higher on the first trading session of the week on Monday, 19 January 2015. The S&P BSE Sensex rose 140.12 points or 0.5% to settle at 28,262.01 on that day.

Metal and banking stocks led the rally as key benchmark indices surged to record high on Tuesday, 20 January 2015, after International Monetary Fund (IMF) on 19 January 2015, said India's economy will be world's fastest-growing major economy in the year through March 2017. The S&P BSE Sensex surged 522.66 points or 1.85% to settle at 28,784.67, on that day.

Amid divergent trend among various constituents of the index, key benchmark indices registered modest gains to hit fresh record high on Wednesday, 21 January 2015. The S&P BSE Sensex garnered 104.19 points or 0.36% to settle at 28,888.86, on that day.

Amid speculation that the European Central Bank (ECB) will announce plans for a quantitative-easing program on 22 January 2015, key equity benchmark indices in India registered modest gains on Thursday, 22 January 2015, with indices hitting record high and Sensex moving past the psychological 29,000 level for the first time in its history. The S&P BSE Sensex rose 117.16 points or 0.41% to settle at 29,006.02.

Trading for the week also finished on a stronger note as key benchmark indices edged higher to extend record high hitting streak on Friday, 23 January 2015, after the European Central Bank President Mario Draghi unveiled a bolder-than-expected stimulus plan. The Sensex gained 272.82 points or 0.94% to settle at 29,278.84.

From the 30-share Sensex pack, 25 stocks rose and five stocks fell in the week ended 23 January 2015.

Bharti Airtel jumped 12.01%. The stock was the biggest gainer from the Sensex pack.

Housing finance major HDFC jumped 8.15% to Rs 1,290.45. The stock hit a record high of Rs 1,340.30 in intraday trade on Friday, 23 January 2015.

Capital goods shares gained. Bharat Heavy Electricals (Bhel) (up 1.79%) and L&T (up 7.1%) gained.

Reliance Industries (RIL) rose 2.07%. RIL on 22 January 2015, announced the pricing of $1 billion 4.125% Senior Unsecured Notes due 2025. The notes have been priced at 240 basis points over the 10-year US Treasury Note, at a price of 98.998 to yield 4.249%. The notes will be denominated in US dollars and will bear fixed interest of 4.125% p.a., with interest payable semi-annually in arrears and shall rank pari passu with all other unsecured and unsubordinated obligations of the company. The funds will be utilized for the company's ongoing capital expenditure, RIL said.

Meanwhile, RIL's consolidated net profit fell 4.5% to Rs 5256 crore on 20.4% decline in revenue to Rs 96330 crore in Q3 December 2014 over Q3 December 2013. The result hit the market after market hours on Friday, 16 January 2015. RIL attributed the decline in revenue in Q3 December 2014 to a sharp fall in benchmark oil price.

Index heavyweight and cigarette maker, ITC declined 2.8%. The stock was the top loser from the Sensex pack. ITC's net profit rose 10.46% to Rs 2635 crore on 2.47% growth in total income from operations (net) to Rs 8942.59 crore in Q3 December 2014 over Q3 December 2013. Segment wise results showed that sales of the cigarette division rose 0.62% to Rs 4141.94 crore in Q3 December 2014 over Q3 December 2013. Sales of the FMCG business jumped 11.37% to Rs 2314.12 crore in Q3 December 2014 over Q3 December 2013. ITC announced the third quarter results during market hours on 21 January 2015.

Pharma stocks gained. Sun Pharmaceutical Industries (up 8.58%) and Cipla (up 4.29%) gained.

Dr Reddy's Laboratories (DRL) rose 1.96%. DRL's wholly owned subsidiary Aurigene Discovery Technologies and Curis Inc. after trading hours in India on 22 January 2015, announced that they have entered into an exclusive collaborative agreement focused on immune-oncology and selected precision oncology targets. The collaboration provides for inclusion of multiple programs, with Curis having the option to exclusively license compounds once a development candidate is nominated within each respective program. The partnership draws from each company's respective areas of expertise, with Aurigene having the responsibility for conducting all discovery and preclinical activities, including Investigational New Drug (IND)-enabling studies and providing Phase 1 clinical trial supply, and Curis having responsibility for all clinical development, regulatory and commercialization efforts worldwide, excluding India and Russia, for each program for which it exercises an option to obtain a license.

Among bank stocks, ICICI Bank (up 4.68%), Axis Bank (up 9.73%) and State Bank of India (SBI) (up 3.72%) gained.

HDFC Bank rose 4.13% to Rs 1,042.90. The stock hit a record high of Rs 1,047.85 in intraday trade on Friday, 23 January 2015.

Tata Motors jumped 11.85% to Rs 587.90. The stock hit a record high of Rs 590.75 in intraday trade on Friday, 23 January 2015.The company on 22 January 2015, announced the commercial launch of its much-awaited sporty hatchback Bolt. Manufactured at the Pimpri plant in Pune, Bolt is the latest car from the company, under its Horizonext umbrella and offers many segment-defining features for Design, Drivability and Connectivity, Tata Motors said in a statement.

Among other auto stocks, Hero MotoCorp (down 1.28%) and Maruti Suzuki (India) (down 0.15%) declined. Mahindra & Mahindra (up 4.33%) and Bajaj Auto (up 0.92%) gained.

Among metal stocks, Tata Steel (up 5.16%), Hindalco Industries (up 4.55) and Sesa Sterlite (up 6.3%) gained. Latest data showed China's GDP grew 7.3% in Q4 December 2014, a tad higher than market expectations. China is the world's largest consumer of copper, steel, and aluminium.

Meanwhile, India's Minister of Steel and Mines Narendra Singh Tomar on 19 January 2015, said that simplification and transferability brought in the MMDR Act, 1957 through the Mines and Minerals (Development and Regulation) (Amendment) Ordinance, 2015 will attract private investment in the mining sector. Addressing a meeting of mines ministers and secretaries from across the country, Tomar said that the ordinance is a revolutionary step in revival of mining sector in the country, hitherto stagnated due to various reasons. He added that the classification of minerals will lead to their better scientific exploration and with more power to the states mining process will be expedite. Citing the example of falling levels of iron ore production in the country, Tomar urged state governments to revive mining in all earnestness. Mining ministers and secretaries from different states expressed optimism over the amendments, and offered constructive suggestions for its implementation on the ground level, the Ministry of Mines said in a statement. It was agreed that delays in environment and forest clearances had to be resolved by MoEF for providing unhindered support in growth of mining.

TCS fell 1.19%. The company announced after market hours on 21 January 2015, that it has been selected by Virgin Atlantic Airways (VAA), one of the UK's leading airlines, to provide fully managed services to transform and optimise its IT processes, applications and infrastructure.

Hindustan Unilever (HUL) advanced 2.13%. HUL's net profit rose 17.87% to Rs 1252.17 crore on 7.17% growth in total income to Rs 7894.39 crore in Q3 December 2014 over Q3 December 2013. The Q3 result was announced on Monday, 19 January 2015.

Meanwhile, Finance Minister Jaitley reportedly said at an event in Davos, Switzerland on 22 January 2015, that the government has a roadmap to cut down fiscal deficit to below 3% of GDP in next few years. The government intends to rationalise subsidies, Jaitely said.

International Monetary Fund (IMF) on 19 January 2015, said India's economy will be world's fastest-growing major economy in the year through March 2017. While the IMF trimmed its global growth forecast for this year and the next year, the fund said that the growth forecast is broadly unchanged for India as weaker external demand is offset by the boost to the terms of trade from lower oil prices and a pickup in industrial and investment activity after policy reforms. IMF estimates India's growth accelerating to 6.5% in the fiscal year through March 2017.

The European Central Bank (ECB) announced a massive new bond-buying program on 22 January 2015, aimed at boosting the sluggish eurozone economy. ECB left interest rates unchanged and announced larger-than-expected measures to stimulate the region's sagging economy after a monetary policy review on 22 January 2015. ECB will buy 60 billion euros worth of assets per month, more than markets had been hoping for. The ECB said it would purchase sovereign debt from this March until the end of September 2016.


Figures in Rs croreDec-2014Sep-2014Jun-2014Mar-2014Dec-2013
Other Income17.700.571.723.450.27
Total Income995.261208.841449.321072.16946.42
Operating Profit25.7639.8293.1235.4024.10
Net Profit-39.59-19.9551.986.561.07
EPS (Rs)-9.15-4.6112.011.520.25

Excel Crop Care

Figures in Rs croreDec-2014Sep-2014Jun-2014Mar-2014Dec-2013
Other Income0.583.925.648.022.91
Total Income172.21303.81336.19230.12214.24
Operating Profit7.0243.7453.7216.5025.19
Net Profit0.9828.6033.1710.6513.73
EPS (Rs)0.8925.9930.149.6812.47

Supreme Petrochem

Figures in Rs croreDec-2014Sep-2014Jun-2014Mar-2014Dec-2013
Other Income0.780.761.951.211.79
Total Income614.67699.00836.88824.62815.84
Operating Profit-52.7827.1822.9827.67-7.43
Net Profit-58.9410.747.739.78-13.47
EPS (Rs)-

Ion Exchange

Figures in Rs croreDec-2014Sep-2014Jun-2014Mar-2014Dec-2013
Other Income2.902.552.181.690.43
Total Income201.11177.05126.08215.00171.58
Operating Profit13.4611.0810.0121.058.00
Net Profit5.563.662.8910.572.44
EPS (Rs)3.822.521.987.281.68

Supreme Industries

Figures in Rs croreDec-2014Sep-2014Jun-2014Mar-2014Dec-2013
Other Income1.094.721.030.407.95
Total Income1066.74764.091278.061005.64982.48
Operating Profit129.6986.08223.14129.02153.71
Net Profit52.7526.15116.9755.4573.77
EPS (Rs)

V-Mart Retail

Figures in Rs croreDec-2014Sep-2014Jun-2014Mar-2014Dec-2013
Other Income0.260.481.340.310.20
Total Income240.53145.04166.38139.13195.80
Operating Profit34.814.8619.846.4126.05
Net Profit24.022.719.031.1014.10
EPS (Rs)13.361.515.030.617.85


Figures in Rs croreDec-2014Sep-2014Jun-2014Mar-2014Dec-2013
Other Income14.84114.6711.7411.1010.72
Total Income547.47681.57570.43582.53537.02
Operating Profit96.70237.49128.14133.28109.85
Net Profit57.28181.5274.6386.7459.96
EPS (Rs)2.929.253.804.423.06

HCL Infosystems

Figures in Rs croreDec-2014Sep-2014Jun-2014Mar-2014Dec-2013
Other Income34.2137.8234.5627.9710.65
Total Income1049.841230.601413.341348.721448.29
Operating Profit-35.3450.06-170.1527.0523.25
Net Profit-61.4725.53-198.032.562.30
EPS (Rs)-2.801.10-8.900.120.10