Delivery Tips:
Stock Name : RNRL
RATING : BUY
CMP : 37.85
TARGET: 64
Stock Name: TISCO
RATING : BUY
CMP: 626.45
TARGET: 800
Stock Name : Indiabulls Realestate
Rating : BUY
CMP : 468
Target : 500
Stock Name : Mahindra Gescocorp Devlopers ltd.
Rating : BUY
CMP : 549.85
Target : 580 In (2 weeks)
Note: Subjected to Market risk, Please do your research before investing.
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Rohit Saxena
Kotak Securities
Phone No: 09891265905
Mail Id: rohit_9sep@indiatimes.com
Tuesday, July 10, 2007
Monday, June 4, 2007
Mkts end lower; Experts in favour of a correction
The markets opened positive but could not hold their gains at the higher level and slipped into the red. It closed near its lowest point of the day with negative market breadth. Most of Asia ended flat, but China was down over 8%.
The Sensex closed down 74.98 points, or 0.51%, at 14495.77, and the Nifty ended down 30 points, or 0.70%, at 4267.05. About 1,149 shares have advanced, 1,371 shares declined, and 83 shares remained unchanged.
Auto, IT, and capital goods were among the major losers. In the auto sector, Tata Motors slipped as it came out with a disappointing set of monthly May sales. IT stocks continue to reel under pressure as the rupee is seen trading at 40.52 levels against the dollar. Sugar sector was a major underperformer in today's session. Bajaj Hindustan, Balrampur Chini, Renuka were among the major losers.
However, metal index outperformed the markets with gains of over 1.2%. The BSE Metal Index was up 1.6% to close at 10,634.17. Jindal Steel, Hind Zinc, Jindal Saw, Tata Steel were among the gainers. Hindalco surged and ended up over 4% on reports that Sterlite with Alcan is looking to buy stake in the company.
FMCG stocks ITC and Dabur India were also among the top gainers. The BSE Small Cap Index closed at 7,466.77 down 0.01%. The BSE Midcap Index ended at 6,233.58 down 0.5%.
Jagdish Malkani, Member, NSE, said, “The market has been a bit rangebound and boring and considering that the June series has started, it is difficult to say. It is almost as if the market is trying to make up its mind. Those five or six stalwarts of the Sensex/Nifty seem to be resting their ores. No new leaders are emerging and there is only some action in the midcap space. I think it will have that stab, which has been eluding the breaking of the Sensex’s all-time high.”
He feels that a bit of a shakedown is necessary. “I still feel it’s high time there was a bit of a shakedown or breakdown. However, no signs of that either is emerging. I think for some time it is going to be the midcaps that will come out and make some runs. Whichever sectors you play right now, for instance capital goods continues to be strong. The old stars are out of the running for a bit, like IT and hotels etc, because of the rupee appreciation,” Malkani added.
He feels there are still select stories in the midcap space. “There are select stories in the midcap space. This is really cherry picking time as there are a lot of stories there. This is the highest GDP growth quarter in 18 years. These stars of tomorrow need to come out and take their place in the sun. I think some of that is happening but not with enough speed,” Malkani added.
He is bullish on the IT space and feels that investors should take long-term positions in this sector.“The rupee still looks like it will break that 40 barrier, may be even 39 who knows, in which case it is obviously bad news for IT companies. It could also swing the other way. This sector is the most competitive sector and certainly one should be using this time to accumulate and salt these away. When the time comes and Infy is running away at Rs 2500, we’ll be kicking ourselves. I’m sure some of these are opportunities, both in the midcap and largecap sector. I think that it is time to cherry pick,” he added.
Meanwhile, A Balasubramaniam, Chief Investment Officer of Birla Sun Life, would approach the market in an "almost fully invested" manner although the cash component across all of his company's schemes would be in the range of 5-8%.
The broad macro fundamentals of the economy suggests a long-term bull market; so, he doesn't think that it is worthwhile to actually look at the market and then, move from one asset class to another asset class.
The advance tax payment, plus liquidity as well as three to four upcoming IPOs, could have a negative impact on the market. He expects to see "some bit of downward trend as we move forward in the near term".
Otherwise, post the 9% plus GDP numbers as well as the expected earnings growth for this year, which is assumed at about 15% for the BSE Sensex listed companies, he assumes some of the corporates in India to outperform the expected earnings growth for this year, which would once again trigger some kind of participation in the market.
The Sensex closed down 74.98 points, or 0.51%, at 14495.77, and the Nifty ended down 30 points, or 0.70%, at 4267.05. About 1,149 shares have advanced, 1,371 shares declined, and 83 shares remained unchanged.
Auto, IT, and capital goods were among the major losers. In the auto sector, Tata Motors slipped as it came out with a disappointing set of monthly May sales. IT stocks continue to reel under pressure as the rupee is seen trading at 40.52 levels against the dollar. Sugar sector was a major underperformer in today's session. Bajaj Hindustan, Balrampur Chini, Renuka were among the major losers.
However, metal index outperformed the markets with gains of over 1.2%. The BSE Metal Index was up 1.6% to close at 10,634.17. Jindal Steel, Hind Zinc, Jindal Saw, Tata Steel were among the gainers. Hindalco surged and ended up over 4% on reports that Sterlite with Alcan is looking to buy stake in the company.
FMCG stocks ITC and Dabur India were also among the top gainers. The BSE Small Cap Index closed at 7,466.77 down 0.01%. The BSE Midcap Index ended at 6,233.58 down 0.5%.
Jagdish Malkani, Member, NSE, said, “The market has been a bit rangebound and boring and considering that the June series has started, it is difficult to say. It is almost as if the market is trying to make up its mind. Those five or six stalwarts of the Sensex/Nifty seem to be resting their ores. No new leaders are emerging and there is only some action in the midcap space. I think it will have that stab, which has been eluding the breaking of the Sensex’s all-time high.”
He feels that a bit of a shakedown is necessary. “I still feel it’s high time there was a bit of a shakedown or breakdown. However, no signs of that either is emerging. I think for some time it is going to be the midcaps that will come out and make some runs. Whichever sectors you play right now, for instance capital goods continues to be strong. The old stars are out of the running for a bit, like IT and hotels etc, because of the rupee appreciation,” Malkani added.
He feels there are still select stories in the midcap space. “There are select stories in the midcap space. This is really cherry picking time as there are a lot of stories there. This is the highest GDP growth quarter in 18 years. These stars of tomorrow need to come out and take their place in the sun. I think some of that is happening but not with enough speed,” Malkani added.
He is bullish on the IT space and feels that investors should take long-term positions in this sector.“The rupee still looks like it will break that 40 barrier, may be even 39 who knows, in which case it is obviously bad news for IT companies. It could also swing the other way. This sector is the most competitive sector and certainly one should be using this time to accumulate and salt these away. When the time comes and Infy is running away at Rs 2500, we’ll be kicking ourselves. I’m sure some of these are opportunities, both in the midcap and largecap sector. I think that it is time to cherry pick,” he added.
Meanwhile, A Balasubramaniam, Chief Investment Officer of Birla Sun Life, would approach the market in an "almost fully invested" manner although the cash component across all of his company's schemes would be in the range of 5-8%.
The broad macro fundamentals of the economy suggests a long-term bull market; so, he doesn't think that it is worthwhile to actually look at the market and then, move from one asset class to another asset class.
The advance tax payment, plus liquidity as well as three to four upcoming IPOs, could have a negative impact on the market. He expects to see "some bit of downward trend as we move forward in the near term".
Otherwise, post the 9% plus GDP numbers as well as the expected earnings growth for this year, which is assumed at about 15% for the BSE Sensex listed companies, he assumes some of the corporates in India to outperform the expected earnings growth for this year, which would once again trigger some kind of participation in the market.
Tuesday, April 3, 2007
Monday, April 2, 2007
Mkt jitters: Sensex sheds more than 600 pts
Sensex witnessed the second biggest intra-day fall on Monday. The bears went on a rampage after the RBI tightened monetary policy on Friday by raising short-term lending rates to contain inflation. All sectoral indices were trading in red. Auto stocks plunged over six per cent.
Sensex closed near its intra-day low; at 12,455.37 points, losing 4.72 per cent or 616.73 points through the course of the day. Nifty closed at a loss of 4.92 per cent or 187.95 points, to end at 3,633.60. Earlier, Sensex had fallen by 826 points on May 18,2006, its biggest intra-day fall till date.
A surprise hike in the repo rate and the cash reserve ratio announced by Reserve Bank of India after trading hours on Friday (30 March 2007), spooked the bourses. The RBI raised its short-term lending rate, the repo rate, by 25 basis points to 7.75%. The central bank also raised the cash reserve ratio (CRR) by half a percentage point. The CRR will rise to 6.50% in two tranches, the first on 14 April 2007 and the other on 28 April 2007, and will drain Rs 15500 crore from the banking system.
'Market was expected to react negatively to this news. One is likely to see a sell off on Government securities,' Gordon Rodrigues, Head of Fund Management, Fixed Income, HSBC Asset Management Company.
Midcap and Smallcap stocks followed the broader market. The BSE Smallcap index closed at 6,294 down 2.7 per cent and the BSE Midcap index ended at 5,384.12 down 3.25 per cent.
About 684 shares advanced, 1736 shares declined, and 73 shares remained unchanged. The BSE cash turnover was Rs 2910 crore and the NSE cash turnover was at Rs 6858 crore. The total market wide turnover was at Rs 38644 crore.
'As the market was in a downtrend, the interest rate hike has only accelerated the fall. I think the market will breach the 12,300 level soon,' said Jayant Pai, vice-president of equity sales at Parag Parikh Financial Advisory Services.
Banking stocks lost 5.95% or 389 points ending at 6,152 points. A hike in lending rate by banks will raise interest rates on working loans of corporates. Over the last year, bank-lending rates have risen by about 300 basis points.
ICICI Bank fell 5.70 per cent to Rs 804 after it raised its benchmark lending rate by 100 basis points to 15.75% on Saturday. ICICI Bank also raised its floating reference rate for consumer loans, including home loans, by 100 basis points to 12.75%, effective immediately. Yes Bank raised its prime lending rate by 75 basis points to 14.75%
'Banking stocks may fall in the short term, as a further interest rate hike will be in the anvil,' feels Rashesh Shah, CEO & MD, Edelweiss Capital.
SBI lost 6.31 per cent to end at Rs 930 and HDFC Bank lost 5.03 per cent ending at Rs 901. Oriental Bank of Commerce was the biggest loser on the index; the stock ended 10 per cent lower at Rs 168.
Rate sensitive sector, auto plummeted 299 points on the BSE to close at 4,569 points down 6.15 per cent. Auto shares were hit due to concerns that any rise in lending rates will rein in demand. Sluggish-to-weak March 2007 sales was yet another reason for the fall in two-wheeler scrips. Maruti slid 8.09 per cent to close at Rs 753; Tata Motors lost 8.04 per cent to down to Rs 669 and M&M slipped 8.31 per cent to end at Rs 715.
Sugar was the only sector that was not hammered down on Monday. Several sugar stocks were trading in the green. Balrampur Chini ended up 2.05 per cent at Rs 67.25; Bajaj Hindustan rose 1.36 per cent to Rs 197 and Triveni Engineering added 2.41 per cent to end at Rs 55.
However, Rana Sugars fell 0.4% to Rs 25.05, after the company became eligible for carbon credits as per a registration with the United Nations Framework Convention on Climate Change with retrospective effect, 2003. This will raise the net profit for 2006-07 by Rs 10 crore on the 1.30 lakh units of CERs earned at $17 per unit.
As per provisional data, FIIs were net buyers to the tune of Rs 640 crore on Friday (30 March), the day when the Sensex rose 92 points ahead of RBI's announcement of a hike in repo rate and CRR.
Asian stocks edged higher on Monday (2 April 2007). Key benchmark indices in Hong Kong, South Korea and Taiwan were in the green. Only Japan was down 1.50%.
US stocks ended little changed on Friday (30 March) as word that the United States had imposed duties on some Chinese imports offset strong economic news and a pullback in oil prices. The Dow Jones industrial average finished up 5.60 points or 0.05%, at 12,354.35. The Standard & Poor's 500 Index slipped 1.67 points or 0.12%, to 1,420.86. The Nasdaq Composite Index inched up 3.76 points or 0.16%, to close at 2,421.64
Oil prices eased but held just under $66 a barrel following a near two-week rally on tensions over Iran's capture of British military personnel and worries over US gasoline supplies ahead of the summer driving season.
Sensex closed near its intra-day low; at 12,455.37 points, losing 4.72 per cent or 616.73 points through the course of the day. Nifty closed at a loss of 4.92 per cent or 187.95 points, to end at 3,633.60. Earlier, Sensex had fallen by 826 points on May 18,2006, its biggest intra-day fall till date.
A surprise hike in the repo rate and the cash reserve ratio announced by Reserve Bank of India after trading hours on Friday (30 March 2007), spooked the bourses. The RBI raised its short-term lending rate, the repo rate, by 25 basis points to 7.75%. The central bank also raised the cash reserve ratio (CRR) by half a percentage point. The CRR will rise to 6.50% in two tranches, the first on 14 April 2007 and the other on 28 April 2007, and will drain Rs 15500 crore from the banking system.
'Market was expected to react negatively to this news. One is likely to see a sell off on Government securities,' Gordon Rodrigues, Head of Fund Management, Fixed Income, HSBC Asset Management Company.
Midcap and Smallcap stocks followed the broader market. The BSE Smallcap index closed at 6,294 down 2.7 per cent and the BSE Midcap index ended at 5,384.12 down 3.25 per cent.
About 684 shares advanced, 1736 shares declined, and 73 shares remained unchanged. The BSE cash turnover was Rs 2910 crore and the NSE cash turnover was at Rs 6858 crore. The total market wide turnover was at Rs 38644 crore.
'As the market was in a downtrend, the interest rate hike has only accelerated the fall. I think the market will breach the 12,300 level soon,' said Jayant Pai, vice-president of equity sales at Parag Parikh Financial Advisory Services.
Banking stocks lost 5.95% or 389 points ending at 6,152 points. A hike in lending rate by banks will raise interest rates on working loans of corporates. Over the last year, bank-lending rates have risen by about 300 basis points.
ICICI Bank fell 5.70 per cent to Rs 804 after it raised its benchmark lending rate by 100 basis points to 15.75% on Saturday. ICICI Bank also raised its floating reference rate for consumer loans, including home loans, by 100 basis points to 12.75%, effective immediately. Yes Bank raised its prime lending rate by 75 basis points to 14.75%
'Banking stocks may fall in the short term, as a further interest rate hike will be in the anvil,' feels Rashesh Shah, CEO & MD, Edelweiss Capital.
SBI lost 6.31 per cent to end at Rs 930 and HDFC Bank lost 5.03 per cent ending at Rs 901. Oriental Bank of Commerce was the biggest loser on the index; the stock ended 10 per cent lower at Rs 168.
Rate sensitive sector, auto plummeted 299 points on the BSE to close at 4,569 points down 6.15 per cent. Auto shares were hit due to concerns that any rise in lending rates will rein in demand. Sluggish-to-weak March 2007 sales was yet another reason for the fall in two-wheeler scrips. Maruti slid 8.09 per cent to close at Rs 753; Tata Motors lost 8.04 per cent to down to Rs 669 and M&M slipped 8.31 per cent to end at Rs 715.
Sugar was the only sector that was not hammered down on Monday. Several sugar stocks were trading in the green. Balrampur Chini ended up 2.05 per cent at Rs 67.25; Bajaj Hindustan rose 1.36 per cent to Rs 197 and Triveni Engineering added 2.41 per cent to end at Rs 55.
However, Rana Sugars fell 0.4% to Rs 25.05, after the company became eligible for carbon credits as per a registration with the United Nations Framework Convention on Climate Change with retrospective effect, 2003. This will raise the net profit for 2006-07 by Rs 10 crore on the 1.30 lakh units of CERs earned at $17 per unit.
As per provisional data, FIIs were net buyers to the tune of Rs 640 crore on Friday (30 March), the day when the Sensex rose 92 points ahead of RBI's announcement of a hike in repo rate and CRR.
Asian stocks edged higher on Monday (2 April 2007). Key benchmark indices in Hong Kong, South Korea and Taiwan were in the green. Only Japan was down 1.50%.
US stocks ended little changed on Friday (30 March) as word that the United States had imposed duties on some Chinese imports offset strong economic news and a pullback in oil prices. The Dow Jones industrial average finished up 5.60 points or 0.05%, at 12,354.35. The Standard & Poor's 500 Index slipped 1.67 points or 0.12%, to 1,420.86. The Nasdaq Composite Index inched up 3.76 points or 0.16%, to close at 2,421.64
Oil prices eased but held just under $66 a barrel following a near two-week rally on tensions over Iran's capture of British military personnel and worries over US gasoline supplies ahead of the summer driving season.
Sensex tanks 331 pts on heavy selling; Bank stocks plunge @ 10:17 hrs
Equities, led by bank stocks, went into a tailspin as the hike in CRR and Repo rates triggered a massive sell-off in early trade on the major Indian bourses this morning.
Mirroring the sharp erosion in values of frontline stocks, the benchmark BSE index Sensex, which crashed to a low of 12,706.92, is down with a huge loss of 331.06 points or 2.53% at 12,741.04 at present. The Nifty, which plunged to a low of 3711.95, is 2.59% or 99.85 points behind its previous closing mark, at 3722.70.
The mood is so negative that none of the Sensex components is up in the positive territory at present. Among Nifty stocks, only Tata Power (up 0.55%) has managed to move up to higher levels.
Banking sector heavyweights State Bank of India, ICICI Bank and HDFC Bank have plunged 5.4%, 5.6% and 4.05% respectively.
Automobile stocks Bajaj Auto, Maruti Udyog, Tata Motors and Hero Honda have lost between 3% and 4.25%. Larsen & Toubro has slipped by a little over 3%. Reliance Communications, ONGC, HDFC, Reliance Energy, Satyam Computers, Hindustan Lever, Bharti Airtel, ITC, Hindalco, Grasim Industries, Reliance Industries, Dr. Reddy's Laboratories, Tata Steel, Infosys Technologies, Wipro< BHEL, Dr. Reddy's Laboratories, Gujarat Ambuja Cements and ACC have all suffered sharp losses in opening trade.
Among non-Sensex bank stocks, Oriental Bank of Commerce, Union Bank of India, Bank of India, Punjab National Bank, Bank of Baroda, UTI Bank, Indian Overseas Bank, Centurion Bank of Punjab, Canara Bank, Andhra Bank and Allahabad Bank have lost 5% - 8%. Federal Bank, Kotak Bank, IDBI, Vijaya Bank, Dena Bank, Syndicate Bank, Corporation Bank, Bank of Maharashtra and UCO Bank have also declined sharply.
Mirroring the sharp erosion in values of frontline stocks, the benchmark BSE index Sensex, which crashed to a low of 12,706.92, is down with a huge loss of 331.06 points or 2.53% at 12,741.04 at present. The Nifty, which plunged to a low of 3711.95, is 2.59% or 99.85 points behind its previous closing mark, at 3722.70.
The mood is so negative that none of the Sensex components is up in the positive territory at present. Among Nifty stocks, only Tata Power (up 0.55%) has managed to move up to higher levels.
Banking sector heavyweights State Bank of India, ICICI Bank and HDFC Bank have plunged 5.4%, 5.6% and 4.05% respectively.
Automobile stocks Bajaj Auto, Maruti Udyog, Tata Motors and Hero Honda have lost between 3% and 4.25%. Larsen & Toubro has slipped by a little over 3%. Reliance Communications, ONGC, HDFC, Reliance Energy, Satyam Computers, Hindustan Lever, Bharti Airtel, ITC, Hindalco, Grasim Industries, Reliance Industries, Dr. Reddy's Laboratories, Tata Steel, Infosys Technologies, Wipro< BHEL, Dr. Reddy's Laboratories, Gujarat Ambuja Cements and ACC have all suffered sharp losses in opening trade.
Among non-Sensex bank stocks, Oriental Bank of Commerce, Union Bank of India, Bank of India, Punjab National Bank, Bank of Baroda, UTI Bank, Indian Overseas Bank, Centurion Bank of Punjab, Canara Bank, Andhra Bank and Allahabad Bank have lost 5% - 8%. Federal Bank, Kotak Bank, IDBI, Vijaya Bank, Dena Bank, Syndicate Bank, Corporation Bank, Bank of Maharashtra and UCO Bank have also declined sharply.
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