Monday, February 8, 2010

BOR: Market Outlook: Indian markets may witness a corrective bounce back buoyed by a recovery in the US & Asian markets.

Market Outlook: Indian markets may witness a corrective bounce back buoyed by a recovery in the US & Asian markets. It fell steeply in the last few days and now some upside can be seen as Investors are feeling comfort to enter the market at this levels. Domestic institutions like MF’s & Insurance companies would start investing now as good some of investment will be collected under tax saving scheme & would be deployed in the markets which can bring some support to carry markets on the positive side.

Global Events to watch for today

  • 4-Week Bill Announcement
  • 3-Month Bill Auction
  • 6-Month Bill Auction

Global indices Update @ 8:

Dow Jones : 10012 (+10.05)

NASDAQ : 2141 (+15.69)

Nikkei 225 : 10007 (- 48.11)

Hang seng : 19577 (- 87.81)

SGX CNX Nifty : 4725 (+21.50)

INR / 1 USD : 46.56

On the global counter: US mkts end with marginal gains; Dow up 10 points. US jobs data, which showed US employers unexpectedly cut 20,000 in January, but the unemployment rate surprisingly fell to a five-month low of 9.7%.

Stock in action for the day: Rel MediaWorks, Inox, Kingfisher Air, Ansal

Jubilant Foodworks lists today Jubilant Foodworks Q3 -Income up 50% at Rs 117.4 crore -Net profit up at Rs 11.4 crore versus Rs 1.8 crore Jubilant Foodworks FY10 Guidance -Sales seen at Rs 415-420 crore -EBITDA seen at Rs 65 crore -PAT seen at Rs 32 crore, EPS at Rs 5 -((Market cap of Rs 923 crore, at issue price, PE = 29 times and Mcap/sales=2.2 times))

Reliance MediaWorks objects Inox’s acquisition of Fame, says the price was lower than a competing bid of Rs 80/sh from it

Govt drops Bank M&A plans following adverse views from RBI and political quarters

Kingfisher Airlines hires US firm to restructure and improve its operational and financial performance

ICICI Pru arm to take 40% in Ansal realty project in Ghaziabad.

ARSS Infra's IPO: Investors are advised to subscribe: RSS Infrastructure carries out activities such as laying new rail tracks, construction of rail and road bridges, signaling/telecommunication ARSS Infra work for railways, widening of roads, strengthening and repair of railway infrastructure, highways, bridges and irrigation projects. It began as a construction company catering to railway infrastructure projects, operating mainly in Orissa. Thus ARSS leaves enough scope of upside for the investors. The fact that the company’s networth will increase after the issue, growth in revenue will be good. Moreover, as government spending on infrastructure is bound to increase and with an established track record of executing government orders, the future for ARSS looks bright.

Aviation sector investors could look at SpiceJet stock: The Dec ‘09 quarter results highlighted the the viability of the low-cost carrier (LCC) model. SpiceJet, the leading LCC operator recorded net In the air profit of Rs 105 crore in Dec ‘09 quarter compared to a net loss a year ago. SpiceJet fared much better than Jet Airways despite being a much smaller niche player. We believe that in the coming quarters, it would continue its stellar performance given its focus on LCC model. Long-term investors are advised to accumulate the stock at current price.

NTPC FPO subscribes fully, retail investors shy away!: National Thermal Power Corporation (NTPC) has been fully subscribed on close. The issue which closed on Feb.5, 2010 was subscribed 1.2 times. The QIB segment was subscribed 2.18 times while retail investors subscribed only 0.25 times. The company had launched FPO of 4,122 million equity shares.

McNally Bharat bags orders worth Rs 566.4 mn: McNally Bharat Engineering Company announced that it has received two orders worth Rs 566.4 million. The project work of the first order includes design, engineering, supply of equipment, under loading, storage, handling, erection testing and commissioning and structural work at site of an HDPS system for Aditya Aluminium Smelter Project of Hindalco for a total value of Rs. 283.2 million.

Maruti looks to drive out of Suzuki's shadow, ramp up R&D for solo show: Maruti Suzuki, the country’s largest carmaker, recently outgrew its Japanese parent in sales. The company, whose products have been Maruti Suzuki driven by Japanese engineers for quarter of a century, now plans to do one better than Suzuki Motor Corp in research and development (R&D). Maruti, 54.2% owned by Suzuki, aims to grow out of its parent’s lingering R&D shadow by propping up an ambitious project that it hopes will earn it independent manufacturing capability.

Hathway Cable’s IPO: Bet for investors: Hathway Cable & Datacom is entering the capital market with an offer of close to 2.7 crore shares at a face value of Rs 10 each. Established Hathway Cable in 1995, the Rajan Raheja Group promoted company is a leading cable television services provider in India offering analogue and digital cable television services across 125 cities. It also provides high-end cable broadband services in 18 cities. It is a well known brand among broadband service providers and has around 3,22,000 subscribers as of the December 2009 quarter.


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