Morning views

Growth data, RIL to set market course


MUMBAI: Stock market investors are anxiously eyeing economic readings worldwide in the week ahead for respite from the recent market turbulence caused by the debt crisis in select European economies.

That and the trend in index heavyweight Reliance Industries (RIL) will set the tone for the market this week. RIL shares gained 3% on Friday to close at Rs 1,040 after the positive court ruling. Brokers say that the stock is unlikely to rise sharply this week, but could stay firm as nervous investors switch money from mid-cap shares to large-caps like RIL. But for the strength in RIL, benchmark indices would have fallen more than 1.5% on Friday.

Analysts recommend buying shares of Anil Ambani group company Reliance Infrastructure, which fell 7% to Rs 979.70 on Friday after the Supreme Court verdict. “The stock is a buy at around Rs 970-980 as the impact of the gas case outcome on the company is expected to be limited,” said Siddharth Bhamre, head-derivatives, Angel Broking.

Edelweiss Capital, too, is positive on the stock. “Reliance Infrastructure’s sum-of-the-part (SOTP) based on this decision (Supreme Court) would be lower by Rs 210/share, at Rs 1,241. Considering the stock has already corrected by 8% to Rs 970/share, we recommend investors to use this as a buying opportunity,” the broking firm said in a note to clients.


MOre @ Growth data, RIL to set market course


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NIIT Technologies

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Src: ET and DP blog etc