Options Strategies
Src: HDFCSEC
30 July 2010
29 July 2010
28 July 2010
A guide to Forbes India 20 stocks portfolio
By: Pravin Palande, T Surendar/Forbes India
Around this time last year, Mumbai was still impatiently waiting for the arrival of the monsoons. It would have been the season’s best reprieve for anxious investors who were till then reeling under the heat of a global market meltdown. In retrospect though, it may have been the ideal starting point for Indian investors.
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Exactly a year before now, in our first cover story on the markets, we had recommended that investors resume buying. We had recommended a portfolio of 20 stocks that would mirror an array of opportunities the Indian economy presented.
A year later, barring two companies, the portfolio has ended with positive returns. Three companies P&G, Page Industries and Pidilite have returned 100%. Five other stocks gained 70%.
On the whole, the Forbes India 20 portfolio was up 54%, compared to 45% of the mid-cap index (most of our recommendation was from this category). The broad market went up by 15% during the same time.
To be honest, there were enough easy pickings. Many companies were powering ahead before the global bust and yet, their valuations had fallen off the cliff. Almost all our stock picks had a strong domestic story that helped insulate them from the global instability.
But that was last year. Many Indian companies are now quickly reaching their pre-slump level in sales. Having scaled back expansion plans, they will soon churn out their full capacities, leaving little headroom for volume growth.
Investors have already guessed that Indian companies will continue to perform well, and lapped up stocks at prices that have already discounted the current financial year’s earnings.
Our considered opinion is that any investments in the stock market may not yield above-average returns in the next one year.
Morning views
hakti Pumps losing steam as investors offload shares
Shares of Madhya Pradesh-based Shakti Pumps, manufacturer of submersible pumps and motors, have been weighed down by selling pressure in the past couple of sessions.
The stock, which fell 4.3% to Rs 285.50 on Tuesday, has fallen over 15% in the past couple of days after witnessing a sharp rally in the past few months on large volumes. Dealers tracking the counter say that some wealthy investors, who had loaded up the stock, are selling.
According to the market buzz, the company was rumoured to be close to bagging some large orders from the government. But in the absence of any such announcement, these investors dumped the stock. The stock clocked a high of Rs 340 last Friday.
Ferro Alloys in demand on stake sale buzz
Ferro Alloys Corporation has been in the thick of activity on bourses of late on talk some groups are in the race to buy a stake in the company.
Initially, the talk was that the promoters of Ferro Alloys’ were only interested in selling a minority stake. Subsequently, there was speculation that a majority stake sale was also being explored. However, differences over valuations between prospective buyers and the promoters have led to talks getting stalled.
Brokers said promoters are demanding at least Rs 50 per share, while the prospective buyers are not willing to pay that much, especially as the stock is currently trading at about Rs 31. Ferro Alloys officials were unavailable for comment on the matter. The stock has risen about 17% in the last six sessions.
Shares of Madhya Pradesh-based Shakti Pumps, manufacturer of submersible pumps and motors, have been weighed down by selling pressure in the past couple of sessions.
The stock, which fell 4.3% to Rs 285.50 on Tuesday, has fallen over 15% in the past couple of days after witnessing a sharp rally in the past few months on large volumes. Dealers tracking the counter say that some wealthy investors, who had loaded up the stock, are selling.
According to the market buzz, the company was rumoured to be close to bagging some large orders from the government. But in the absence of any such announcement, these investors dumped the stock. The stock clocked a high of Rs 340 last Friday.
Ferro Alloys in demand on stake sale buzz
Ferro Alloys Corporation has been in the thick of activity on bourses of late on talk some groups are in the race to buy a stake in the company.
Initially, the talk was that the promoters of Ferro Alloys’ were only interested in selling a minority stake. Subsequently, there was speculation that a majority stake sale was also being explored. However, differences over valuations between prospective buyers and the promoters have led to talks getting stalled.
Brokers said promoters are demanding at least Rs 50 per share, while the prospective buyers are not willing to pay that much, especially as the stock is currently trading at about Rs 31. Ferro Alloys officials were unavailable for comment on the matter. The stock has risen about 17% in the last six sessions.
27 July 2010
RIL Q1 net profit up 33.42% at Rs 4851 cr
RIL Q1 net profit up 33.42% at Rs 4851 cr
Mukesh Ambani group's flagship company Reliance Industries (RIL) has announced its results for the quarter ended June 2010. It has reported net profit at Rs 4851 crore as against Rs 3636 crore, a growth of 33.42% on year-on-year basis.
Net sales jumped 81.65% to Rs 58,228 crore from Rs 32,055 crore. Numbers were in-line with expectations; CNBC-TV18 expected net sales at Rs 59,300 crore and net profit at Rs 4820 crore.
Refining revenues increased 106.81% to Rs 50,531 crore from Rs 24,434 crore and petchem revenue rose 18.8% to Rs 13,903 crore from Rs 11,707 crore (YoY).
Petchem earning before interest & tax (EBIT) declined to Rs 2,053 crore from Rs 2,109 crore while refining EBIT jumped to Rs 2,035 crore from Rs 1,299 crore.
Petchem margins came in at 14.8% and refining margins at 4%. Operating margins stood at 16%.
Gross refining margin (GRM) came in at USD 7.3 a barrel.
Net sales jumped 81.65% to Rs 58,228 crore from Rs 32,055 crore. Numbers were in-line with expectations; CNBC-TV18 expected net sales at Rs 59,300 crore and net profit at Rs 4820 crore.
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Petchem earning before interest & tax (EBIT) declined to Rs 2,053 crore from Rs 2,109 crore while refining EBIT jumped to Rs 2,035 crore from Rs 1,299 crore.
Petchem margins came in at 14.8% and refining margins at 4%. Operating margins stood at 16%.
Gross refining margin (GRM) came in at USD 7.3 a barrel.
HUL Q1 net profit down 8.3% at Rs 512.4 cr
L&T Q1 net profit up 15% at Rs 666 cr
RBI rates may make auto, home loans dearer
RBI hikes short-term rates; CRR unchanged
Impact analysis: Monetary Policy Review
Result Analysis: Hindustan Unilever
L&T net up 15% at Rs 666 cr
RESULT ANALYSIS: NTPC
Src: ET, Smartinvestor, Moneycontrol
26 July 2010
My Favorite Market Blogs
Few of My Best and Favorite Market Related Web Blogs/Websites. I always look these blogs for investing and trading. Simply super. Some offers Premium services. These are Few of My Blogs I Regularly Follows. I request all the investors and traders use these sites for investing.
25 July 2010
Market Outlook: RIL Result, RBI Meet eyed
TECHNICAL ANALYSIS: Index Outlook: Action-packed week ahead
It was one of those rare weeks in which index movement went almost unnoticed. Changes in takeover code and new GST system hogged the headlines along with the first quarter earnings, keeping the attention of market participants riveted. The ...
STOCKS: BHEL: Buy
Investment Focus. Bharat Heavy Electrical's (BHEL's) strong footing in the power equipment space has not come under much threat despite domestic and foreign competition. Combined with a strong order book and robust financials, BHEL's earnings ...
PUBLIC OFFER: Engineers India — FPO: Invest
The high-end engineering, design and consulting business of Engineers India is not only unique but also lucrative given its presence in the hydrocarbon space. Earnings growth of 38 per cent compounded annually over the last three years, a ...
STOCKS: Sesa Goa: Book profits
Iron ore major Sesa Goa appears to be a risky play in the metals space considering the uncertain outlook on iron ore realisations and demand from the export market. The company's reliance on the Chinese market, where iron ore prices and ...
It was one of those rare weeks in which index movement went almost unnoticed. Changes in takeover code and new GST system hogged the headlines along with the first quarter earnings, keeping the attention of market participants riveted. The ...
STOCKS: BHEL: Buy
Investment Focus. Bharat Heavy Electrical's (BHEL's) strong footing in the power equipment space has not come under much threat despite domestic and foreign competition. Combined with a strong order book and robust financials, BHEL's earnings ...
PUBLIC OFFER: Engineers India — FPO: Invest
The high-end engineering, design and consulting business of Engineers India is not only unique but also lucrative given its presence in the hydrocarbon space. Earnings growth of 38 per cent compounded annually over the last three years, a ...
STOCKS: Sesa Goa: Book profits
Iron ore major Sesa Goa appears to be a risky play in the metals space considering the uncertain outlook on iron ore realisations and demand from the export market. The company's reliance on the Chinese market, where iron ore prices and ...
STOCKS: Hitachi Home & Life Solutions (India): Buy
Investors with an appetite for risk can consider investing in the stock of Hitachi Home & Life Solutions (India) at the current price of Rs 337. The stock, though at a high now, offers scope for gains in the medium term given the pace ...
IPOS: SKS Microfinance IPO: Invest
Investors with a high risk appetite can consider subscribing to the Initial Public Offer (IPO) of SKS Microfinance, one of the largest microfinance NBFCs .
24 July 2010
Stock and Market Views
LONDON/MADRID: Seven European banks would not be strong enough to withstand another recession and would face a capital shortfall of 3.5 billion euros ($4.5 billion), tests run in an attempt to revive investor confidence showed on Friday.
Five of Spain's smaller regional lenders, known as cajas, failed the test and their recapitalisation is likely to speed a restructuring of the troubled sector.
Banks in Germany and Greece were also seen as weak spots and in need of restructuring, but state-owned Hypo Real Estate was the only German lender to flunk and state-controlled ATEbank was the only Greek bank to fail.
Analysts had expected five to 10 banks to fail the test. As expected, no big banks failed the health check. German government bond futures hit one-month lows and the euro briefly pared its losses against the dollar after the results were released.
Europe tested how 91 banks would cope with another recession and losses on government debt after the Greek crisis hit markets and raised fears the euro zone could unravel. It aimed to repeat a health check on US banks last year that helped restore investor confidence and underpinned a recovery by bank shares.
Five of Spain's smaller regional lenders, known as cajas, failed the test and their recapitalisation is likely to speed a restructuring of the troubled sector.
Banks in Germany and Greece were also seen as weak spots and in need of restructuring, but state-owned Hypo Real Estate was the only German lender to flunk and state-controlled ATEbank was the only Greek bank to fail.
Analysts had expected five to 10 banks to fail the test. As expected, no big banks failed the health check. German government bond futures hit one-month lows and the euro briefly pared its losses against the dollar after the results were released.
Europe tested how 91 banks would cope with another recession and losses on government debt after the Greek crisis hit markets and raised fears the euro zone could unravel. It aimed to repeat a health check on US banks last year that helped restore investor confidence and underpinned a recovery by bank shares.
23 July 2010
India to become a $5 trillion economy soon
AGPUR: US Consul General Paul Folmsbee on Friday said that the Indian economy has the potential to grow further and is likely to touch the $5 trillion mark in the near future.
"The Indian economy is growing fast and from the present $1.2 trillion, it is expected to become a $5-trillion economy very soon," Folmsbee, said without specifying a particular time frame while addressing management students at G S College of Commerce here.
The Consul General, who was in the city today for a seminar on 'Indo-US relations' also emphasised on the need for both countries to focus on vital issues like energy crisis, technology transfer, climate change, higher education and small as well as medium enterprises.
On the higher education scenario, particularly at the University level, Folmsbee said many US varsities were in the process of setting up their establishments in the country with Columbia University already establishing its institution in Mumbai.
On his first visit to the orange city, Folmsbee said he was here to study the issues of regional interest.
"The Indian economy is growing fast and from the present $1.2 trillion, it is expected to become a $5-trillion economy very soon," Folmsbee, said without specifying a particular time frame while addressing management students at G S College of Commerce here.
The Consul General, who was in the city today for a seminar on 'Indo-US relations' also emphasised on the need for both countries to focus on vital issues like energy crisis, technology transfer, climate change, higher education and small as well as medium enterprises.
On the higher education scenario, particularly at the University level, Folmsbee said many US varsities were in the process of setting up their establishments in the country with Columbia University already establishing its institution in Mumbai.
On his first visit to the orange city, Folmsbee said he was here to study the issues of regional interest.
NEW DELHI: Sajjan Jindal-led JSW Steel may sell about 14 per cent stake to Japan's JFE for Rs 4,700 crore to cut the company's debt.
"Talks between the two companies for stake sale have more or less concluded. JSW Steel may sell around 14 per cent stake to JFE," a source in the know of the development said.
"Talks between the two companies for stake sale have more or less concluded. JSW Steel may sell around 14 per cent stake to JFE," a source in the know of the development said.
News Round-Up
Daily News Roundup - July 23 2010
Earning reports fuel strong rally at Wall Street
PNB
United Spirits
Src: ET and DP blog and Smartinvestor.in
22 July 2010
Know Some Websites
Here I have listed some Market Related Blogs from the Source of Our Blog Follower Mr/Ms TVSR52. Thank you Sir... Please Use these sites for your investing.
21 July 2010
Stock Views from Various Sources
20 July 2010
Stock Calls
Ramsarup hits circuit as Arcelor seen circling
Shares of Kolkata-based Ramsarup Industries were frozen at its daily maximum permissible trading limit of 20% on speculation that ArcelorMittal, the world’s largest steelmaker, is close to buying a stake in the company. The stock, which has risen close to 30% in a week, closed at Rs 102.1. The buzz is that Arcelor is likely to buy the stake at Rs 120 apiece. A senior Ramsarup official declined to comment. Market sources said the deal is likely to be structured, with ArcelorMittal having an option to raise its minority stake in the company later. The company will get an infusion of about Rs 1,000 crore by way of partly convertible debentures shortly, according to a person in the know. The instrument will be converted into equity shares in future.
Inox gains 15% on stake sale speculation
Shares of Inox Leisure rose 14.7% to Rs 74.75 on speculation the Anil Ambani group is in talks to buy a stake in the company. Denying the talk, Deepak Asher, director of Inox Leisure, said, “The speculation is baseless.” An Anil Ambani group spokesperson declined comment. According to a market source, in this deal, Inox will be valued at Rs 400 crore. The promoters of Inox Leisure are locked in a takeover battle with Anil Ambani’s Reliance MediaWorks (RMW) to acquire Fame India. Inox bought Fame promoters’ 43% stake in the company for Rs 44 a share in early March and subsequentl
Shares of Kolkata-based Ramsarup Industries were frozen at its daily maximum permissible trading limit of 20% on speculation that ArcelorMittal, the world’s largest steelmaker, is close to buying a stake in the company. The stock, which has risen close to 30% in a week, closed at Rs 102.1. The buzz is that Arcelor is likely to buy the stake at Rs 120 apiece. A senior Ramsarup official declined to comment. Market sources said the deal is likely to be structured, with ArcelorMittal having an option to raise its minority stake in the company later. The company will get an infusion of about Rs 1,000 crore by way of partly convertible debentures shortly, according to a person in the know. The instrument will be converted into equity shares in future.
Inox gains 15% on stake sale speculation
Shares of Inox Leisure rose 14.7% to Rs 74.75 on speculation the Anil Ambani group is in talks to buy a stake in the company. Denying the talk, Deepak Asher, director of Inox Leisure, said, “The speculation is baseless.” An Anil Ambani group spokesperson declined comment. According to a market source, in this deal, Inox will be valued at Rs 400 crore. The promoters of Inox Leisure are locked in a takeover battle with Anil Ambani’s Reliance MediaWorks (RMW) to acquire Fame India. Inox bought Fame promoters’ 43% stake in the company for Rs 44 a share in early March and subsequentl
19 July 2010
Morning calls
17 Jul 2010, 1727 hrs IST
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Verge of Break out
YES Bank cmp 299 : Possible Upside after facing lot of resistance at current levels. Good upside expected if breaks 300-310.
Orchid Chem (188): Possible Upside after facing lot of resistance at current levels. Good upside expected if breaks 194-200 levels.
Src: ET, Myiris and etc
18 July 2010
Stock and Market Views
Both the Nifty and the Sensex recorded 29-month highs last week. But there was not a single celebratory beep from the market. This cynical attitude is hardly surprising given the numerous attempts made by the benchmark to ‘break out' ...
Investors with a two-year horizon can buy the shares of Wipro, a leading software services and hardware player, given the revival in volumes (person-months billed) in its IT services business and strengthening domestic presence (IT products) ...
Investments with a one-two year time horizon can be considered in the stock of Punjab National Bank (PNB), as the bank despite its size, holds strong growth prospects. The overall pick-up in credit growth augurs well for PNB, which has ...
Disappointing results over several quarters and the sharp run-up in the stock of ABB after the announcement of an open offer, have resulted in the stock trading at very steep valuations, far higher than peers and not supported by ...
The stock of Hindustan Petroleum Corporation Limited (HPCL), the government-controlled downstream oil refining and marketing major, has run up sharply since the fuel pricing reform measures late ...
Investors with a high appetite for risk and a two-three year perspective may buy the stock of Simplex Infrastructures, a diversified construction contractor. Our previous buys on this stock were at Rs 137 in January 2009 and at Rs 415 ...
Results so far have only managed to pleasantly surprise the markets. While there is no telling what the next week's result announcements would entail, trends in index option trading hint at a range-bound market. Most of the open interest ...
16 July 2010
Morning views
Insurance Big Daddy turns seller in index stocks THE Big Daddy of insurance has been a seller in the index stocks in the past one week, keeping up to its reputation of being a seller in a rising market and a buyer in a falling market. Brokers said they have received selling orders from the Big Daddy in large numbers of late, mainly in oil & gas, banks and auto shares. In the past week or so, the institution has been a seller in SBI. But the buzz is, it has been a buyer in select mid-cap bank stocks. FIs make a beeline for LIC Housing, stock up 7% SHARES of LIC Housing Finance rose 7% to a 52-week high of Rs 1,073.40 supported by heavy volumes in a subdued trading session on Thursday. According to dealers, domestic mutual funds and select FIIs were heavy buyers after the company posted better-than-expected quarterly numbers. They said fund managers have been buying housing finance companies of late, mostly for trading gains. Some analysts are cautious about the outlook of housing finance companies, as firming interest rates are expected to raise their borrowing costs, thereby affecting margins. Oil cos tank as govt fails to free up diesel prices SHARES of state-owned oil marketers HPCL and BPCL crashed 6% on Thursday after the government said it will not deregulate diesel prices. The sudden about-turn in fuel policy has caught most Dalal Street stalwarts on the wrong foot. All these players had bought huge chunks of these stocks over the past couple of weeks, convinced that the sector was due for re-rating. The top guns who are long on HPCL, BPCL and IOC include the Rar(e)ing Bull, Old Fox, the high-profile second-in-command at a listed broking firm and a suave broker who shares his surname with the Old Fox. The problem now is that most of the top names are bullish on these stocks. So if they turn bearish, who are they going to sell their holdings to? Godrej Properties bucks downtrend in realty stocks AT A time when most property stocks are being cold-shouldered by fund managers as well as market operators, Godrej Properties hit a record high of Rs 691.40 on Thursday. Dealers tracking the counter say there is good interest in the stock, but at the same time, they point out that low liquidity is having a multiplier effect on the share price. A suave BSE broker, who shares his surname with the Old Fox, is said to be one of the big buyers of the stock. (Contributed by Harish Rao & Santosh Nair) |
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For those of us still fumbling to find the € symbol on our keyboards, today was a bad news day. Computer and mobile keyboards in India (and possibly around the globe) will soon be adding another new button – the rupee key.Piramal Healthcare
Maruti Suzuki
Voltamp Transformers, HDFC, Infotech Enterprises, Bajaj Auto
TCS - Strong Results
Colgate - Rich Valuations
Axis Bank
Daily Market Outlook - July 16 2010
Market View - July 16 2010
Src: ET, Smartinvestor, DP blog and etc
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