Tuesday, October 4, 2011

Stocks in action for the day: JSW Steel, Wockhardt, Titan, Radico Khaitan.

Market Outlook: Indian markets are expected to open with a gap down and trade in the range of 4790-4830 on the back negative sentiment seen on world markets. All eyes are now on Monday's IIP (Oct 12th) and Wednesday's inflation numbers. We expect growth number to remain subdued as a dozen interest rate hikes and a wobbly world meant purchase orders were tapering off.

Fitch downgrades India growth to 7.5%, GDP: Fitch Ratings today marginally revised downwards the growth projection for the economy to 7.5% this fiscal due to weak global situation coupled with domestic concerns arising from inflation and series of rate hikes. The domestic economy had clocked 8.5% growth last fiscal, on the back of which the government had first projected a 9% growth in the Budget but revised it downwards to 8.2% recently following the worsening of the Eurozone sovereign debt crisis as well as the fear of a double-dip recession in the US.

On the global space: Wall Street ends lower on Greece worries; Nasdaq down 3.2%. The US markets continue to bleed led by financials, as worries over Greece continues to spook investors and overshadowed a pair of better-than-expected economic news. All three major indices closed at their lowest levels in over a year and the day's decline marks the worst start to October since 1998.

Asian markets trading weak; Seoul Composite slips 4.4% and following to the global slump Oil slips to $101 on euro debt fears. Today China market remains closed on account of New Year celebrations.

Back to Indian Markets are following global cues, so we continue to hold a cautious outlook with support 4790 and resistance at 4860.

Global events to watch for today:

Þ Factory Orders.

Global indices Update @ 8:

Dow Jones : 10655 (-258.0)

NASDAQ : 2335 (-79.57)

Nikkei 225 : 8406 (-139.1)

Hang seng : 16785 (-36.49)

SGX CNX Nifty : 4849 (-82.00)

Gold (USD/t oz.) : 1665 (+07.30)

Nymex Crude (F) : 76.79 (-00.82)

INR / 1 USD : 49.42

TECHOUTLOOK : Support for the Nifty is at 4790 and resistance at 4860.

Call for the day :

Sell JSW Steel Stoploss 565 Tgt 525.

Accumulate Coal India around 330-340 with a target of 365 (Positional call Short Term)

Sell HDFCBANK SL 465 Target 440.

BUY Wockhardt Sl 370 Target 405 (Positional call Short Term)

Stocks in action for the day: JSW Steel, Wockhardt, Titan, Radico Khaitan.

JSW Steel promoters have pledged 15.27% outstanding shares of the company.

Pantaloon retail has Okayed its Rs 1,500 crore fundraising plan and the company says that it is not to dilute equity over 15%.

IPO Corner: Taksheel Solutions IPO of 55 lakh shares with a price band of Rs 130-150/sh close today QIBs: 0.24 times (x) NIIs: 1.92x RIIs: 0.73x Overall: 1.18x

OneLife Capital Advisors IPO of 33.5 lakh shares with a price band of Rs 100.110/sh close today QIBs: 0.49x NIIs: nil RIIs: 0.39x Overall: 0.49x

22 cos cancel IPOs: Owing to a sluggish trend in stock markets, at least 22 companies, mainly from real estate and power sector, have called off their initial public offers (IPOs) in this fiscal, Among the 22 companies that cancelled their IPOs, a host of them belong to power and real estate sectors, including Sterlite Energy, Jindal Power, Avantha Power, Lodha Developers, Ambiance Real Estate, Kumar Urban Developers, Neptune Developers, BPTP and Raheja Universal.

Pharma major Wockhardt yesterday got additional time to finalise a formal repayment plan for its overseas bond holders. The company which has total dues of Rs 358 crore was supposed to revert to the Bombay High Court with a detailed plan yesterday, but now has extra time as the Court adjourned the case to October 11.

Reliance Industries is all set to get its act together. Over a year after shocking everyone with a USD 3 billion purchase of a nationwide license to offer fourth generation wireless broadband in India, Mukesh Ambani's RIL is putting in place the building blocks for a nationwide rollout. It hopes that it will surpass the voice services rollout of a decade ago.

In the oil and gas space, RIL has been claiming for quite a while that its KG-D6 price of $4.2/mmbtu is far too low. The company has now proposed a formula that seeks to link the gas price with Japan's crude cocktail. This, they say, will maximize government revenue.

The Ruias are back in news. The CBI prosecutors believes the Loop case is one of "corporate greed" and not of corporate fraud. Stay tuned to moneycontrol.com for reports on it.

Govt says -Diesel revenue loss for fortnight starting October Rs 6.9/litre -Kerosene revenue loss for fortnight starting October Rs 24.6/litre -LPG revenue loss for fortnight starting October Rs 270/Cylinder

Listing today: Prakash Constrowell - issue price at Rs 138/sh

Bombay Dyeing to boost realty focus for growth; expects half of its revenues to come from realty business this fiscal (ET)

GVK group to acquire coal fired power units to ramp up its power generation capacity to over 7500 mw over next 5 years (ET)

Diageo looks to acquire 50% stake of Radico Khaitan in its 5 years old JV (BS)

Aksh Optifibre makes an open offer to acquire 3.1 crore shares at Rs 7/sh ((CMP: 6.20))

DoT set to terminate 13 licences given to Swan Telecom, as the company was not eligible for licences under crossholding norm (FE)

Posco- SAIL JV hits new hurdle over the supply of raw materials (FE)

Hindustan Copper ’s Malnjkhand project gets govt approval (BL)

Titan to hike watch prices upto 20% on Forex & gold price rise (DNA)

Buffet Company in talks with Reliance Retail for India entry; alliance with Dairy Queen may help RIL to enter fast food biz (TOI)

F&O ban: Gitanjali Gem


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