Friday, November 11, 2011

Stocks in action for the day: Tata steel, Wipro, KFA, RComm, Mah Satyam, GMR Infra.

Market Outlook: Indian markets are expected to open positive tracking cues from Asian markets and US markets. While all eyes are on Index of Industrial Production (IIP) numbers for the month of September which will be coming out today and direct the markets sentiments. Markets expects t at 3.5% versus 5.6%. Banking stocks are going to be in focus. Rating agency S&P has taken a contrary view to rival Moody's and upgraded the Indian banking sector to group-5 status.

Key earnings to watch: Reliance Capital, HDIL, Shree Renuka sugars, Adani Power, Mundra Port, Jet Airways, Tata Chemicals, PTC India Financial Services, Gammon Infra, Lanco Infra, MOIL, Aftek, Hindustan National Glass, Educomp Solutions, GTL Infra, Pipavav Defence, Hathway cables, Gammon India, Great Eastern Shipping, Eros Intl, Den Networks, REI Agro, Mahindra Ugine, UTV Software, Financial Tech, JK Cement, Simbhaoli Sugars, Nitesh Estates, Parekh Aluminex, Solar Industries, Microsec Financial Services, Tilaknagar Industries, Store One Retail, Indosolar, Autoline Industries, Dishman Pharma, Jindal Saw, JK paper, Bartronics, Prime Focus, Varun Industries, Purvankara Projects.

US Market: The US markets closed higher followed with a choppy session, but ongoing worries over the Euro zone crisis pulls back much of the gains. In economic data, the latest weekly initial jobless claims count totaled 390,000, which is less than 400,000 claims that had been expected, on average. The latest tally is also 10,000 less than the prior week's total. The trade deficit contracted to USD 43.1 billion in September from USD 44.9 billion in the prior month.

Global events to watch:

Þ University of Michigan's Consumer Sentiment Index for November.

Global indices Update @ 8:

Dow Jones : 11893 (+112.8)

NASDAQ : 2625 (+3.50)

Nikkei 225 : 8487 (-13.13)

Hang seng : 19077 (+113.4)

SGX CNX Nifty : 5176 (+23.50)

Gold (USD/t oz.) : 1768

Nymex Crude (F) : 97.60

INR / 1 USD : 49.78

TECHOUTLOOK : Nifty support seen at 5144 with an resistance level at 5288.

Call for the day:

Sell Tata Steel SL 455 Target 436.

Buy Axis Bank SL 1093 Target 1140.

Stocks in action for the day: Tata steel, Wipro, KFA, RComm, Mah Satyam, GMR Infra.

S&P differs with Moody's, upgrades Indian banking sector: Leading ratings agency Standard & Poor's has upgraded the Indian banking sector saying its domestic regulations are in line with international standards. The new economic risk score of 'Group 5' by S&P reflects that India has "high risk" in "economic resilience," "low risk" in "economic imbalances," and "high risk" in "credit risk in the economy. In the 'Group 6' score on India's economic imbalance was "intermediate risk" which has now been upgraded to "low risk".

Global Offshore to buy 3 more ships; to invest Rs 750 cr.

Mahindra Satyam Q2 profit up at Rs 238 cr: The company has posted a net profit of Rs 238 crore in the second quarter ended September 30, 2011, showing a growth of 5.7 per cent quarter on quarter. In the same quarter last year, it posted a profit of Rs 23 crore, 76 per cent lower than the previous quarter profit. The revenue for the second quarter stood at Rs 1,578 crore, 10 per cent more than Rs 1,433 crore in the previous quarter.

Cadila Healthcare Q2 net dips 38% on high costs: Cadila Healthcare said its consolidated net profit declined by 37.68 per cent to Rs 110.20 crore for the second quarter ended September 30, 2011, over the same period previous fiscal, primarily due to high interest and finance charges. The company had posted a net profit of Rs 176.83 crore for the same period last fiscal. Consolidated net sales of the company rose to Rs 1,219.64 crore for the second quarter, as compared to Rs 1,106.32 crore in the same period last fiscal.

Tata Steel net slumps 89%: Tata Steel, the world's seventh-largest steel maker reported a 89 per cent drop in the second quarter’s consolidated net profit, weighed down by rising raw material costs and weak prices in Europe. Its net profit stood at Rs 212 crore against Rs 1979 crore in the same period last year. Net sales grew to Rs 32,507.5 crore against Rs 28,091 crore last year. Total expenditure, too, grew to Rs 31,157 crore against Rs 26,052 crore in the corresponding quarter last year

Tata Communications has turned in a net profit of Rs 17.7 crore for the second quarter of the current fiscal, against a loss of Rs. 57.7 crore in the same year-ago quarter. The turnaround was due to strong improvements in revenues and profit margins in its global voice and global data business. Segmentally, revenue growth was 4.1 per cent in the voice business, 12.3 per cent in data, and 30 per cent for Neotel.

DLF Q2 net profit dips 11% to Rs 372 crore: The company's consolidated net profit for the quarter dropped from Rs418.38 crore a year ago to Rs372.41 crore. Total consolidated income during the period, however, grew 2.28% fromRs2,519.8 crore to Rs2,577.16 crore.

Wipro announces consolidation of Global IT business Wipro says -Anand Sankaran will lead Global Infra & Services -Single entity will accelerate growth -Single entity will build on leadership position

CCI sources say -Can't act versus airlines if price hike due to demand-supply gap -Need to assess merits of case -'Can act against airlines only if they acted in concert'-Looking into abuse of dominant position by airlines CCI: Competition Commission Of India -Airfares have spiked due to

KFA cancellations -CCI probe against airlines began last December

UP sugar mills to move court over cane price

Reliance Mediaworks to split business into two to boost growth

Kingfisher in trouble? - 130 pilots quit – TOI

Angry lessors plan to seize aircraft given on lease; DGCA demands explanation for mass cancellation of flights – ET

Infosys suffers a jolt in US visa-fraud case; Federal Judge rules against arbitration, with court to decide on the case (ET)

Attorney General endorses CBI probe in Essar-Loop case; with CBI to charge Essar promoters for cheating & conspiracy (ET)

Jaypee Group may acquire Andhra Cements for Rs 155 crore; may buy GP Goenka’s entire 45% stake & launch an open offer for 26% (ET) (CMP: Rs 10.96) ((M-cap: Rs 160 crore))

Jindal Steel’s Bolivian Ore reserves face govt takeover threat; company insisting its share of iron ore secure (ET)

UK based TCI asks govt to persuade Coal India to buy back shares worth Rs 43000 crore to boost the company’s value (ET)

Lock in norms for FDI in real estate may be relaxed; profits above the ceiling of USD 5 million can be repatriated (FE)

REC blocks Rs 400 crore loan to Bengal power firm for failing to revise tariff (FE)

Govt moots 100% FDI in single brand; move to encourage more foreign players (TOI)

Blackstone, Carlyle set to buy Reliance Communications towers for around USD 3.5 billion; deal likely to happen by December (TOI)

Ratan Tata may remain head of group trusts; may play an indirect role in group beyond December next year (BS)

Cadila Health Q2: -Consolidated net profit at Rs 100 cr vs Rs 170 cr -Consolidated net sales at Rs 1,220 cr vs Rs 1,110 cr

IRB Infra Q2: -Consolidated net profit at Rs 110 cr vs Rs 99 cr (YoY) -Consolidated net sales at Rs 736 cr vs Rs 490 cr (YoY)

Hindalco Q2: -Standalone net profit at Rs 502.5 cr vs Rs 433.8 cr (YoY) -Standalone net sales at Rs 6,220.5 cr vs Rs 5,859.9 cr (YoY)

Cummins Q2: From NSE: -Standalone net profit at Rs 128.6 cr vs Rs 167.9 cr (YoY)-Standalone net sales at Rs 1,069.8 cr vs Rs 1,067.5 cr (YoY)

Moser Baer Q2: -Standalone net loss at Rs 62 cr vs loss of Rs 71.7 cr (YoY)-Standalone net sales at Rs 532 cr vs Rs 515.7 cr

Mahindra Satyam Q2: -Net profit at Rs 238 cr vs Rs 225.2 cr (QoQ) -Revenue at Rs 1,577 cr vs Rs 1,434 cr (QoQ)-EBITDA margins at 15.32% vs 14.64% (QoQ)

GMR Infra Q2: -Consolidated net loss at Rs 62.5 cr vs profit of Rs 62 cr (YoY) Previous year reported PAT included Rs 140 cr of exceptional items -Consolidated net sales at Rs 1,812.3 cr vs Rs 1,222 cr (YoY)

Tata Comm Q2 -Consolidated net loss at Rs 165 cr vs Rs 203 cr (YoY) -Consolidated net sales at Rs 3,374 cr vs Rs 2,961 cr (YoY)

Eicher Motors Q3 -Consolidated net sales at Rs 1,438 cr vs Rs 1,092 cr (YoY)-Consolidated net profit at Rs 73.7 cr vs Rs 38.6 cr (YoY)

HOEC Q2 -Net profit at Rs 4.1 cr vs Rs 17 cr (QoQ) -Net sales at Rs 30.9 cr vs Rs 61.74 cr (QoQ)

Neyveli Lignite Q2 -Net profit at Rs 278 cr vs Rs 274 cr-Net sales at Rs 1,159 cr vs Rs 1,063 cr

Voltas Q2 -Consolidated net profit at Rs 41.8 cr vs Rs 92.4 cr-Consolidated net sales at Rs 1,102 cr vs Rs 1,063 cr


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