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Monday, November 22, 2010
Market may recover
Gains in Asian stocks will help Indian stocks recoup some of the last week's steep losses. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate that the Nifty could gain 40 points at the opening bell. Volatility may remain high as traders roll over positions in the derivatives segment from the near-month November 2010 series to December 2010 ahead of the expiry of the November 2010 futures & options (F&O) contracts on Thursday, 25 November 2010.
Indian stocks likely to open steady
The markets may have a gap-up start following the positive Asian cues. The market may remain sideways and rangebound ahead of F&O expiry this week.
Headlines for the day:
R-Power, Lanco among 7 cos for NTPC solar plants
SEBI plans to cut IPO process time to 7 days
Steel companies to jointly acquire assets abroad
Daily News Roundup - Nov 22 2010
Suzlon is in the race to bag an estimated Rs3bn project of Nalco. (BS)
Reliance Industries says it has restarted crude distillation unit no.1 and coker unit at the Jamnagar refinery complex. (BL)
Petroleum ministry says it will consider approval for the US$8.5bn Cairn-Vedanta deal only after Cairn Energy makes a formal application for transfer of control in all its 10 properties in the country. (BS)
Nifty slips for 3rd straight day...ends below 6000
The Indian market extended its losing streak to the third straight trading session as heavy selling across the board dragged the NSE Nifty below the 6000 levels. Today's selling was led by Realty, Oil & Gas and Consumer Durables stocks. The broader indices also came under immense selling pressure.
Fine to begin with
Everything's fine today, that is our illusion. - Voltaire.
We expect a firm opening and perhaps a much better day for the bulls. Any rumor of the Prime Minister resigning remains just the imagination of a few. The fact that FIIs and local funds were net buyers on Friday could prop up the sagging spirits.
Educomp Solutions
Investors with a two-year horizon can buy the shares of Educomp Solutions, a leading player in the school education space.
Continuing strength in its high-margin SmartClass business, selective participation in pure hardware deals and increasing visibility in its pre-school and K-12 segments are key positives for the company.
US stocks eke out little gains after early drop
Stocks end near the unchanged mark for the week
US stocks ended near the unchanged mark for the week that ended on Friday, 19 November 2010. While the Ireland story remained the headliner for the week, traders also remained focused regarding latest developments from China where the country was expected to take active steps to curb inflation. Economic reports for the week checked in mixed in nature. New IPO from General Motors was another event for the week.
Kingfisher Airlines
Like its peers in the Indian aviation space, Kingfisher Airlines has been able to show improvement in performance metrics over the past few quarters, aided by an uptick in demand for air travel in the country. Also, the company has been taking steps towards running a tight ship and has received preliminary approvals pertaining to the debt restructuring plan, which, when it comes through, should ease some pressure arising from its bloated leverage.
Exide Industries
Investors with a two-to-three-year perspective can invest in Exide Industries. Robust demand for automotive batteries, capacity expansions, limited exposure to the telecom batteries segment and increased sourcing of raw material from captive units signal good earnings prospects over the given time-frame.
RPP Infra Projects IPO Review
Investors can avoid the Initial Public Offer of RPP Infraprojects, a South-based construction contractor, given the high asking price relative to peers. The company does not have any distinguishing business model to command a premium to peers. In magnitude of order book and revenues, it lags well behind listed construction peers. Given its small-sized business, the execution risks in its efforts to scale up to a developer may be significantly higher. At the upper end of its price band of Rs 68-75, the offer is valued at 13 times the estimated FY-11 earnings. Peers such as Unity Infraprojects, Pratibha Industries and ARSS Infrastructure are available at valuations of 8 to 13 times trailing 12- month earnings. Other detracting factors include geographic concentration of the order book and stiff competition in other states.
Crude drops
Prices slip due to demand concerns from China
Crude prices ended lower on Friday, 19 November 2010 at Nymex. Prices fell following news that China's central increased the reserve requirement for its banks by 50 basis points for the second time in as many weeks. The announcement was not that surprising since speculation has been building that China might tighten policy to fend off inflation. Still, there was concern that tighter policy could slow growth.
Sunday, November 21, 2010
Volatility may remain high ahead of F&O expiry
Year-end profit taking may continue to weigh on the domestic bourses in the near term. Volatility may rise over the next few days as traders roll over positions in the derivatives segment from the near-month November 2010 series to December 2010 ahead of the expiry of the November 2010 futures & options (F&O) contracts on Thursday, 25 November 2010.
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