Friday, December 9, 2011

Stocks in action for the day: Cairn India, GAIL ( India ), Geojit BNP, Dewan Housing, Dish TV.

Market Outlook: Indian markets are expected to open negative backed by weak Asian markets. Further investors will keep an eye on the crucial EU Summit from which investors are expecting something concrete to come out of which will help to put an end to the region's debt crisis.

Global Markets: The US markets declined to log in sharp losses after Germany rejected some of the EU summit draft measures.

Global events to watch:

  • Summit of European Union leaders in Brussels.
  • U.S. trade deficit figures for October
  • U.S. consumer sentiment for December

Global indices Update @ 8:

Dow Jones : 11997 (-198.6)

NASDAQ : 2596 (-52.83)

Nikkei 225 : 8541 (-122.6)

Hang Seng : 18780 (-327.0)

SGX CNX Nifty : 4883 (-65.50)

Gold (USD/t oz.) : 1719

Nymex Crude (F) : 98.28

INR / 1 USD : 51.77

TECHOUTLOOK : Support for Nifty is at 4850 resistance at 5021.

Call for the day:

Sell ONGC SL 270 Target 259.

Sell Sesa Goa SL 182 Target 165-170.

Stocks in action for the day: Cairn India, GAIL ( India ), Geojit BNP, Dewan Housing, Dish TV.

The service tax department has frozen accounts of state-owned carrier Air India and Kingfisher Airlines for non-payment of services tax dues. Air India has Rs 170 crore in dues while Kingfisher owes Rs 100 crore as service tax liability for the past couple of months.

Fin Min Srcs To Finalize Stamp Duty Act Shortly Uniform Stamp Duty On Capital Mkt Transactions
Stamp Duty Only On Sale Of Assets Alert: Stamp Duty Currently On Sale & Purchase Revised Act May Reduce Transaction Costs By 40%States Will Have To Independently Adopt Act Fin Min Rates Will Only Be Recommendatory

Proposed Stamp Duty On: Delivery Based Client Trading at 0.01%Delivery Based Proprietary Trade at 0.01% CM Segment Delivery Based Client Trade at 0.002% CM Segment Delivery Based Proprietary Trade at 0.001%

State-run explorer Oil and Natural Gas has surrendered an onshore block awarded to it some decade-and-a-half ago in West Bengal, saying the project was not commercially viable.

Vedanta Resources plans to quickly double crude oil output from Cairn India’s Rajasthan block in partnership with the government and expand operations globally to boost India’s energy security

Fortis Healthcare (India) plans to invest up to . 30 crore to set up 50 standalone dialysis centres across the country in the next two years for treatment of patients suffering from kidney failure.

Procter & Gamble Co, Colgate- Palmolive Co and Henkel were fined €361.3 million ($464 million) by French antitrust regulators for fixing the price of laundry soap

Debutants Under Lens for IPO Fund Misuse: A few recently-listed companies, merchant bankers and stock brokers are under the regulatory scanner for the alleged misuse of initial public offering proceeds and price manipulation post-debut on bourses

Merchant power companies will be in focus today after the country's state-owned gas marketing company GAIL ( India ) Ltd has told some merchant power plants that they will have to pay higher prices for gas supplied to them.

Reliance Capital ltd after the financial services firm of the Anil Ambani-led Reliance Group, is in talks with at least three international firms to sell a 26% stake in its general insurance arm, according to reports.

Ajmera Realty has informed BSE that it has acquired 100% stake in Ajmera Biofuel Ltd ("ABL") subject to such approvals, consent, sanctions and permissions as may be required.

IPO mop-up plunges 89% to $1.14bn in Jan-Nov,2011

Essar Oil commissions new unit at Vadinar

Trai to Come Out with Paper on Exit Policy

US Court Restrains Lupin from Selling Generic Drug

Cash-strapped textile mills refrain from bulk cotton buying

Videocon to Set Up Mobile Phone Facility Next Year

DLF eyes three big-ticket sales in 2012

SEZ developers allowed to dilute project equity; Cabinet nod not required after commerce ministry approval.

Dish TV tapping investors for Rs 1,000-cr fund

Geojit BNP Paribas board accepts offer from BNP Paribas to sell stake in JV for Rs 40.5cr

Dewan Housing buys 20 lakh shares of Dhanlaxmi Bank at Rs 59/sh via block deal

HC restrains Wockhardt ’s bondholders from filing anti-suit injunction; co had agreed to pay to FCCB holders in 5 installments (ET)

Amtek India board to consider raising of funds through ECB’s, bonds, warrants.

Kavveri Telecom board to consider increase in FII share upto 35%

F&O Ban: ABG Shipyard, Gitanjali gems and RuchiSoya

In an interview with, Prashanth Tapse, AVP Research, Mehta Equities gave views on two stocks which were buzzing on Thursday, Dec. 8, 2011. The same are as follows:

Sesa Goa: Sesa Goa, a Vedanta group company is active on trader`s counters mainly on the back of its actively participating in Cairn & Vedanta deal. Sesa Goa, along with its subsidiary Sesa Resources, has bought around 1.5 % stake in Cairn India for over Rs 9,360 million, taking its total holding in the oil producer to 20%. The average price of the acquired shares was Rs 325. The average price of the acquired shares was Rs 325. With Sesa Goa holding going up to 20%, Vedanta`s cumulative stake will increase to 30% in Cairn India. Cairn Energy and Vedanta have already agreed to the other condition of Cairn India paying cess and royalty on crude oil produced from its mainstay Rajasthan oilfields. Cairn Energy and Vedanta have already agreed to the other condition of Cairn India paying cess and royalty on crude oil produced from its mainstay Rajasthan oilfields. With on going deal process between Carin India & Vedanta Inc, Sesa Goa plays a vital role in having controlling stake which will gradually reduce cash component in sesa`s books.

Technically the chart is clearly showing a downtrend with a target near to 165-170 levels.

Shares of the company declined Rs 11, or 5.81%, to settle at Rs 178.40. The total volume of shares traded was 709,736 at the BSE.

Nectar Lifesciences: Nectar the leading manufacturer of generic active pharmaceutical ingredients (APIs) is in action on the back of approval for its Cephalasporin Formulations manufacturing facility in Baddi, This approval will facilitate NecLife`s entry into lucrative 27 European Union member states, EEU, South Africa and Middle East markets on account of mutual recognition. Till date, NecLife has filed 27 Drug Master Files (DMFs) and 6 Abbreviated New Drug Applications (ANDAs). Neclife has very ambitious plan of filing over 20 DMFs and multiple ANDAs/EU dossiers in US and EU markets in year 2012. These filings by NecLife will result in robust topline as well as bottomline for the company from year 2013 onwards in view of gestation period for regulatory approvals which take significant time in view of the current pendency.

Technically there is no clear sign for either side direction for short term trade, if one looks nectar on a fundamental basis the stock is undervalued which is trading at P/BV of 0.54 (BV Rs 32), Hence, investor with long term view can buy it with a target of Rs 32-35.

Shares of the company gained Rs 0.4, or 2.31%, to settle at Rs 17.70. The total volume of shares traded was 109,873 at the BSE.

SKS Microfinance: India`s only listed microfinance lender, SKS Microfinance counter opened with a positive sentiments on the back of its announcement that the micro lender has decided to reduce its exposure to microfinance in terms of assets, revenues and profits. It expects this business, which would largely focus on meeting the needs of existing microfinance borrowers, to help derisk operations from microfinance. By March 2013, Company also expects to bring down its exposure to microfinance in terms of assets to 90% from nearly 100% now. In terms of revenue, the exposure will come down to 80% and in profit terms, it will come down further to around 70%.

We believe the above business restructuring process will lead for better sustainability in financial performance. Technically the chart is showing positive signal with a target of Rs 128 on immediately basis.

Shares of the company gained Rs 5.6, or 4.96%, to settle at Rs 118.55. The total volume of shares traded was 231,243 at the BSE.


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