Indecision is the seedling of fear - Napoleon Hill.
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Monday, September 06, 2010
Daily News Roundup - Sep 6 2010
Wipro and Leica Geosystems bags Rs1.2bn project that involves setting up operator-independent truck dispatch systems at Coal India’s 11 large mines. (ET)
SBI is considering the merger of all five of its remaining associate banks with itself, having amalgamated with two of them in the last two years. (BS)
Sensex, Nifty log tepid weekly gains...broader mkt shines
During the week, caution and optimism went hand in hand. A rare error in Q1 GDP numbers was sorted out after a credible explanation from the Government. Overall, the GDP data only reinforced a growing view that economic fundamentals remain fairly robust. Having said that, PMI data on manufacturing and service sector activity and trade figures indicated that some softening could be underway and that growth may have peaked out. Also, inflation continues to hover near double digits, putting relentless pressure on the RBI to raise rates. The BSE Sensex and the NSE Nifty gained 1% each this week ending at 18,221 and 5,479 respectively but the broader market indices clearly outpaced the gains in the main indexes.
Stocks to open higher on strong global cues
Headlines for the day:
RBI: Exclude banks from class action
Fortis Hospitals plans expansion in Bangalore
Acquisitions to drive Tata Global's foods foray
Usha Martin
Investors with medium-term perspective can consider buying the stock of Usha Martin (Rs 88.5). The stock has been on a steady long-term uptrend since its March 2009 low of Rs 18.6, shaping rising peaks and troughs.
Sunday, September 05, 2010
Overall bias to remain positive
Despite an intra-day dip to 5,350, the Nifty more or less moved in the trading band of 5,400-5,550. It ended with a gain of 71 points at 5,479 and looks likely to continue its range-bound movement.
BPCL
Investors can consider exiting the stock of Bharat Petroleum Corporation Ltd (BPCL), given that its sharp run-up since the partial fuel price reforms in late June seems to be ahead of fundamentals, and ignores the low earnings visibility due to the subsidy burden. At its current market price of Rs 768, the stock has gained as much as 39 per cent in a couple of months and trades at around 17 times FY10 consolidated earnings, much higher than its peers, HPCL (12 times) and Indian Oil Corporation (10 times).
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