Thursday, December 15, 2011

Stocks in action for the day: JSW Steel, Ansal Prop, Dunlop, DLF, RIL

Market Outlook: Indian markets are expected to open negative weak Asian markets while investors will keep a close eye on weekly inflation data due later today. The monthly inflation data released yesterday showed that the rate of price hike has declined marginally to 9.11% in November from 9.73 per cent in the previous month, however still above market expectations.

Global Markets: U.S markets closed negatively backed by European turmoil. Europe's debt crisis is still worsening prompted investors to dump riskier assets and huddle in the safety of the dollar and Treasuries. Further a downgrade by ratings agency Fitch of five major European financial groups, including France's Credit Agricole to A-plus from AA-negative, added to the already euro-negative sentiments. Asian markets trading lower; Hang Seng, Straits Times slip.

Global events to watch:

• Eurozone preliminary manufacturing PMI data.
• U.S. jobless claims
• U.S. industrial production for November.

Global indices Update @ 8:

Dow Jones : 11823` (-131.4)
NASDAQ : 2539 (-39.96)
Nikkei 225 : 8411 (-107.6)
Hang Seng : 17965 (-389.1)
SGX CNX Nifty : 4713 (-51.00)
Gold (USD/t oz.) : 1576
Nymex Crude (F) : 94.88
INR / 1 USD : 53.57

TECHOUTLOOK : Support for Nifty is at 4710 resistance at 4850.

Call for the day:

Sell JSWSteel SL 555 Target 525.

Stocks in action for the day: JSW Steel, Ansal Prop, Dunlop, DLF, RIL

Reliance Industries Ltd after the company has indicated it can surrender a part of the D6 block, in line with the national auditor's report, while government officials are trying to speed up approvals to develop other fields in the block.

Rajesh Exports Ltd after the Bangalore-based leading jewellery exporter and retailer said it plans to invest Rs 6,500 crore to expand its retail chain Shubh Jewelers by opening 550 outlets in the four southern states

Aviation Secretary says -Govt working on new civil aviation policy -New policy to factor in needs of sector over next decade -Have 5 months to complete new civil aviation policy -New policy to encourage private sector investments -Policy to encourage setting up air cargo promotion board

SBI Chairman says -More worried about Kingfisher than Air India -More work needs to be done on Kingfisher Airlines accounts -SBI alone cannot take a call on KFA debt restructuring-KFA debt restructuring needs to be discussed by a bank comm. SBI Head says -Cash infusion worth Rs 3,000-4,000 crore around the corner -Form of govt fund infusion not yet finalized -RBI not to cut rates immediately as inflation high

JSW Steel set to lose Rs 529 cr paid as initial deposit for preferential warrants, due for conversion today – ET (CMP: 529, conversion price was Rs 1210 (Trading at 55% discount)
The promoters are set to loose the up front initial payment of Rs 529 crore, which was paid on June 16, 2010 -This as they will not be converting their warrants owing to price erosion and will not pay the remaining Rs 1,588 crore

UBS official attempted to help Anil Ambani invest in securities against FII norms: Details of an attempt to create an offshore vehicle through which Mr Anil Ambani could invest in securities in India, in breach of foreign institutional investor regulations, have emerged during a tribunal hearing in London, which began this week.

Advance tax numbers - tax officials say -Hindalco pays Rs 200 crore versus Rs 200 crore (YoY) -GSK pays Rs 80 crore versus Rs 90 crore (YoY. M&M Financial pays Rs 103 crore versus Rs 89 crore (YoY).

Loans disbursement by banks picks up: In the latest fortnight ended December 2, banks disbursed loans aggregating Rs 46,377 crore, against Rs 8,570 crore in the preceding fortnight.

JSW Steel to Lose 529-cr Warrant Deposit: JSW Steel, India’s largest private steelmaker measured by domestic capacity, is set to lose over Rs 500 crore paid as an initial deposit for preferential warrants allotted in June last year when they become due for conversion on Thursday at a price which is more than double the current rate.

RInfra Plans to Auction Power Transmission Co: Reliance Infrastructure (RInfra) will auction its power transmission company — Reliance Power Transmission — to raise money and limit its risks in a volatile sector.

Mundra Port and Special Economic Zone Ltd (MPSEZ) has put in a revised price bid to Chennai Port Trust to build a Rs.3,686 crore container-handling facility.

Government has defreezed the bank accounts of debt-ridden Kingfisher Airlines and Air India after the two air carriers made part-payment of their service tax dues.

The Lok Sabha passed the Cable Television Networks (Regulation) Amendment Bill, 2011, making it mandatory for all cable operators in the country to convert from analog to digital transmission in a phased manner by December 2014.

UB group chairman Vijay Mallya has asked the government to expedite decision on a request by Kingfisher Airlines to import jet fuel directly to save local taxes.

Country’s largest lender SBI expressed hope it would get capital infusion of Rs 3,000-4,000 crore from the government this fiscal.

The Union Government proposes to set up a Rs 10,000-crore Electronic Development Fund (EDF) next year, to promote electronic hardware manufacturing in the country.

State-run Indian Overseas Bank may look at borrowing $500 million in the overseas market next year to meet dollar demand from Indian companies.

Tirumala Dairy, the second largest private dairy player in South India, is sewing up plans to set up the country's largest integrated dairy with an investment of over Rs 5,000 crore in the next three to four years.

The Telecom Regulatory Authority of India (TRAI) has initiated legal action against cellular operators for not implementing Mobile Number Portability (MNP) properly. While proccedings have begun against Bharti Airtel, show-cause notices have been issued to others, including Vodafone and Idea Cellular.

Micro-finance bodies unite under common code of conduct
NTPC-BHEL joint venture to begin operations next fiscal
SKF opens Global Technical Centre in Bangalore
L&T commissions 384-MW unit for GMR
DLF is all set to ink a Rs 900 cr Pune SEZ deal with Blackstone
F&O ban: ABG Shipyard, Gitanjali Gems, Ruchi Soya
PM says FDI in retail after March
Finance Ministry now against urea decontrol (FE)
Saint Gobain to acquire Electrotherm 's iron pipes business Rs 950 crore
DHFL board meet today to consider & approve raising of funds via ADR/GDR/FCCB
Indiabulls Real board meet today to consider the proposal of buy back
Vijay Mallya seeks quick decision on Kingfisher plea to import ATF directly to save local taxes (ET)
Worli’s Dunlop house up for sale for Rs 400 crore (TOI)
Ansal Properties free upto 20% of pledged stock to 77.63% - DNA (Alert: promoter had earlier pledged 97.74% of its stake)

Mehta Equities` take on NTPC, Sudarshan Chem and Redington… Source: IRIS (14-DEC-11)

In an interview with, Prashanth Tapse, AVP Research, Mehta Equities gave views on three stocks which were buzzing on Wednesday, Dec. 14, 2011. The same are as follows:

NTPC, the third largest power generator in Asia with 35,354 mw installed capacity has seen some interest on investors terrain after the news stating that it has signed an agreement with Electricity Generation Company of Bangladesh Ltd for providing operation and maintenance services for 240-mw gas based Siddhirganj power plant near Dhaka. This contract, awarded against international competition, is valued at about Rs 430 million. This is the largest single international order received by NTPC. NTPC has forayed in to becoming an international operation and maintenance operator.

Technically the stock is consolidating at the current levels. There is no clear sign for either side direction for short term trade, if one looks on a fundamental basis the stock is undervalued, Hence investor with long term view.

Shares of the company declined Rs 3.6, or 2.16%, to settle at Rs 163.10. The total volume of shares traded was 141,748 at the BSE.

Sudarshan Chemical:
Sudarshan a leading player in colours & the largest pigment supplier was in action mainly on the back of news stating that the Company proposes to sign an agreement with Eckart. Germany for acquiring of assets relating to the natural mica based pearlescent pigment products for cosmetics and personal care sold under the brand Prestige and Fionac C owned by Eckart, Germany and or its Affiliates. The agreement is proposed to be signed on Dec. 15, 2011 in this regard.

On overall basis we stand neutral on the standalone performance looking at the industrial concerns. Since October 2011 the stock is continuously underperforming mirroring to the overall industrial outlook, hence we advice investors to avoid the counter and revisit as and when trend changes.

Shares of the company gained Rs 14.9, or 2.84%, to settle at Rs 540. The total volume of shares traded was 2 at the BSE.

Redington (India) a leading player in the business of end-to-end supply chain management of IT and Non-IT products. Its partnership with Blackberry has been successful and with 3G services being rolled out, sales of these smart phones will drive the future growth of the company. Investors can consider buying Redington India`s stock as the company is expected to benefit from its high-growth-high-margin non-IT for smart phone and consumer durable businesses.

Technically looking at the weekly charts the stock would consolidate at the current level before fresh momentum on either side. The stock has strong support at 70.

Shares of the company gained Rs 0.25, or 0.33%, to settle at Rs 75.80. The total volume of shares traded was 14,464 at the BSE.


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