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Monday, October 17, 2011
Sensex up 5% on week...Infy shines; IIP, Inflation disappoint
After a weak October start, the markets have bounced back with a vengeance shrugging concerns of low IIP and inflation numbers. The NSE Nifty blasted past the 5100 mark while the BSE Sensex recaptured the 17000 mark.
The BSE IT, Banking, Realty and the Metals index were among the major gainers.
Shares of Infosys rallied almost 10% during the week after the company announced consolidated net profit of Rs19.06bn as compared to Rs17.22bn in the previous quarter. The company has posted consolidated net sales at Rs80.99bn as compared to Rs74.85bn in the previous quarter. Other IT shares also advanced on expectations that they too will declare strong Q2 results in the days to come. Meanwhile, IIP grew by a modest 4.1% in August versus 4.5% in the same period a year earlier. The reading was lower than the consensus estimate of 4.7-4.8%.
Accepting the situation
Acceptance is not submission; it is acknowledgment of the facts of a situation. Then deciding what you're going to do about it. – KC Theisen.
The situation may demand caution but investors have indeed decided to take the risk. Indian equities logged one of their best weeks in recent memory, notwithstanding disappointing IIP and inflation reports. Strong earnings from Infosys coupled with growing optimism over the eurozone situation and hope of QE3 in the US were among the factors that drove the sentiment.
Markets may see a +ve start on hopes of Europe crisis plan
Indian markets are likely to see a positive start on hopes of Europe coming up with a plan to contain its debt crisis and recapitalise its banks.
Headlines for the day:
G-20 commitment on info exchange important achievement: Pranab.
Moser Baer workers go on strike.
Federal Bank eyes I-banking, equity broking foray.
Reliance Infrastructure to train 1 lakh students under 'YES' programme.
SAIL plans to set up rail coach factory in Bengal.
Fin Min for white-level ATMs to boost banking access.
Bright retail sales data pushes crude prices higher
Prices rise on expectation of higher demand for oil in coming months
Crude prices ended higher on Friday, 14 October at Nymex. Better than expected retail sales data for September and softer dollar boosted the crude price on expectation of higher demand for oil in coming months.
Light and sweet crude for November delivery rose $2.57 (3.1%) to $86.8 a barrel on the New York Mercantile Exchange on Friday. For the week, crude gained 4.6%. For the month of September, oil futures lost 11%, and for the quarter, crude incurred losses of 17%. It was the worst quarterly performance for crude in almost two years.
Precious metals shine
Prices register modest weekly gains
Precious metals ended higher on Friday, 14 October 2011 at Comex. Prices turned higher following better than expected retail sales data from the Commerce Department. A weak dollar also boosted prices.
Gold for December delivery rose $14.5 or 0.9%, to end at $1,683 an ounce on the Comex division of the New York Mercantile Exchange on Friday. For the week, gold gained 2.9%. For the month of September, gold shed 11%. It registered a rise of 8% for the third quarter ending September.
Market may extend recent gains on firm Asian stocks; RIL in focus
The market may extend recent gains on firm Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 25 points at the opening bell.
Key benchmark indices surged to their highest levels in more than 3 weeks on Friday, 14 October 2011 as firm European shares, higher US index futures and data showing sustained buying by foreign funds recently boosted sentiment. The BSE Sensex jumped 198.77 points or 1.18% to settle at 17,082.69, its highest closing level since 20 September 2011.
Sunday, October 16, 2011
Eros International firmly in the picture ahead of release of Ra.One
Eros International Media rose 2.48% to Rs 258.20 at 14:54 IST on BSE after the company said it is planning a wide release of the Shah Rukh Khan starrer Ra.One.
The company made this announcement during trading hours today, 14 October 2011.
Meanwhile, the BSE Sensex was up 196.67 points, or 1.16% to 17,080.59.
Gold - good time to accumulate
Gold prices present a good opportunity for long-term investors to accumulate the precious metal as its overall outlook remains positive amid the current economic uncertainty.
Gold prices, which had collapsed in the last week of September, have recovered significantly and are now hovering around Rs 27,000 per ten grams. Going forward, fresh buying by stockists and jewellers to meet the ongoing festival demand is likely to further fuel the uptrend
MOIL - Buy
India's largest manganese producer, MOIL, has witnessed a 30 per cent correction in its stock price in the last three months following a sharp correction in manganese ore prices and weak global growth outlook. This provides investors the opportunity to accumulate the stock at attractive valuations.
A growing domestic market for steel, industry-topping profit margins, zero debt and high cash reserves make MOIL a very good defensive bet. The stock trades at 8.2 times trailing twelve month earnings which is at a discount to fellow public sector miners such as NMDC. On an EV/EBIDTA basis, the company trades at 3.5 times, which is at discount to global mining peers.
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