Sensex reveals 10-year trend and Stock Reports

Sensex reveals 10-year trend

NEW DELHI: For the last 10 years, the Sensex declined in the second half of the calendar year only when it fell in the first half of the year, an

Volatile mkts: Do I invest now or exit? Tips for range-bound markets Risk while investing in midcaps Follow 20-20 rule for better returns

analysis by SundayET reveals. And if that 10- year trend holds out, investors

who took positions on the BSE Sensex during the early days of the second half of the current calendar year need not worry about losing money as the market appreciated by over 46% during the first half of CY09.

The analysis reveals that on average the performance of the Sensex has been better in the second half of the year. The average returns of the Sensex since 1999 (excluding 2009) for the second half of the year was 17% whereas it was -2% for the first half of the year.

Also, between 1999 and 2008, the Sensex fell five times — 2000, 2001, 2002, 2004 and 2008 — in the first half of the year, while it declined only thrice — 2000, 2001 and 2008 — in the second half of the year. During the first half of CY2000, CY2001 and CY2008, the Sensex posted a negative return of around 12%, 13% and 34%. Consequently, in the second half it declined by 18%, 5% and 26% in the second half during these years.

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Also, between CY1999 and CY2008, there were only two instances, CY1999 and CY2000, when the return in the first half was better in than the second half of the year. In CY1999, during the first half the Sensex posted a return of 35% as against just 19% in the second half.

Similarly, in CY2000, the Sensex declined by only 12% during the first half whereas in the second half it lost as much as 18%.

Explaining the reasons for the markets doing better during the second half of the year, Deena Mehta, MD, Asit C Mehta Investment

said that usually foreign institutional investors start buying during January, and hence local investors and punters start building up their positions from November and December.

According to Aseem Dhru, MD & CEO of HDFC Securities, during the second half of the year, demand in sectors such as auto, textile, hotels, FMCG and consumer durables is usually high. “Even today large parts of the population buy clothes only once a year and that is during Diwali. Even foreign tourists start visiting the country during the second half of the year as the climate is good. Given the composition of economy, this pattern is likely to continue,” he said.

The Sensex posted better returns in the second half 80% of the time. During the current calendar year, it posted around 46% return in the first half. However, it is to be seen whether in the second half the Sensex outperforms the return of first half. Till now during the second half of the current calendar year, the Sensex has posted a return of 17%, but there is just over a fortnight left for this year to end.

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D B Corp Ltd IPO Information & IPO Evaluation

Incorporated in 1995, D B Corp Ltd is one of the leading print media companies in India, publishing 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) in 11 statesin India.

Company's flagship newspapers are Dainik Bhaskar, Divya Bhaskar and Saurashtra Samachar have a combined average daily readership of 15.5 million readers making them one of the most widely read newspaper groupsin India.

DB Corp Ltd. IPO Information
Issue Open: Dec 11, 2009
Issue Close: Dec 15, 2009
Price Range: Rs. 185 - Rs. 212 Per Equity Share
Minimum Bid Size: 30 Equity Shares
Issue Size: 18,175,000 Equity Shares of Rs. 10
Face Value: Rs. 10 Per Equity Share
Issue Type: 100% Book Building
Maximum Subscription Amountfor Retail Investors: Rs.1,00,000

IPO Grading / Rating:
CARE has assigned an IPO Grade 4 to D B Corp Ltd IPO. This means as per CARE, company has above average fundamentals.

KR Choksey Securities IPO report on DB Corp IPO:
The company needs to be compared with the listed peers, with similar size and reach, and on these parameters, HT Media and Deccan chronicle are the fit peers to compare. The company is bit weak on financials when compared with its peers but has certain advantages over those two, in respect toface value of share at Rs 10 of the company as against Rs 2 of those two and second being high promoters’ stake at 86% against 64% of Deccan and 69% of HT Media.

Considering the presence of the company with 7 newspapers, 48 newspaper editions, 128 sub- editions, as also, 31 facilities spread across 31 cities, with combined average daily readership of 1.55 crore readers, the company would get placed in the upper league of print media with other listed peers. Even the debt burden of the company is comparable with other two listed peers.

Keeping all these facts in mind, issue at Rs 185, being its lower band, looks attractive while at Rs 212, being its upper band, does not leave anything on the table for the prospective investors, as better alternatives are available in the secondary market

IPO investors may bid at lower band of Rs. 185 for some listing gains.

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Friday, December 11, 2009

Stock Tips - Buy Visa Steel For Short Term

NSEMumbaibull, independent equity research group has recommended to buy stocks of Visa steel limited (BSE Stock code: 532721) for short term investment for good returns.

The short term target for shares of Visa steel in coming days could be at Rs. 45.



Looking at the charts, Rs. 36 level seems to be providing a strong support for stock and the upward move can be up to Rs. 44 - 45 Levels where one should sellstocks.

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Thursday, December 10, 2009

Godrej Properties IPO Valuation

Incorporated in 1990, Godrej Properties Limited (GPL) is one of the leading real estate development companies in India based in Mumbai, Maharashtra.

Issue Open: Dec 09, 2009. - Dec 11, 2009.
Price Band: Rs. 490 - Rs. 530 Per Equity Share
Minimum Bid Size: 13 Equity Shares
Issue Size: 9429750 equity shares
Issue Size (Rs Crore): Rs. 462.06 - 499.78 Crore
Face Value: Rs 10 Per Equity Share
Issue Type: 100% Book Built Issue IPO
Listing At: BSE, NSE
Maximum Subscription
Amount for Retail Investor: Rs.100000

Incorporated in 1990, Godrej Properties Limited (GPL) is one of the leading real estate development companies in India based in Mumbai, Maharashtra. Godrej Properties currently have real estate development projects in 10 cities in India, which are at various stages of development. Company's business focuses on residential, commercial and township developments.

IPO Grading / Rating
ICRA has assigned a 'ICRA IPO Grade 4' [Grade Four] to the proposed IPO issue of Godrej Properties Ltd (GPL). 'ICRA IPO Grade 4' indicates above average fundamentals. ICRA assigns IPO grades on a scale of Grade 5 to Grade 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.

To invest in IPO or not?
Angel Broking has come out with a research report on Godrej Properties (GPL) IPO (initial public offering). The research firm believes that the IPO is fairly priced and keep a neutral view on it.

Fair NAV for GPL (based on its existing land bank) works out to Rs 469/share. Around 50% of the NAV is derived from its township project in Ahmedabad. We have factored in a 5% price escalation from FY2011E onwards in the construction and capital value for all its residential projects from the current levels, and a 5% correction in Rentals in FY2011E, but a 5% increase from FY2012E onwards for all its commercial and retail projects. We believe that the IPO is fairly priced and keep a neutral view on it. However, investors can look at alternate, existing listed players like Anant Raj, which have a debt-free balance sheet, land at prime locations and is trading at a significant discount to one-year forward NAV", says Angel Stock Broking Trader.

Many stock market broker firms have rated the Godrej properties IPO as expensive and advised to avoid th IPO.

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Tuesday, December 8, 2009

Bhushan Steel - Stock Analysis - Buy Stocks For Long Term

The recent recovery in Indian economy has once again increased the demand for steel products. There has been significant rise in auto sales and other consumer goods in last few months. All these factors have led to a rise in sales of flat steel products. Bhushan Steel, a leading producer of flat products, is set to benefit from all these.

This stock was recommended in Economic Times Investors’ Guide earlier. At that time the stock was trading at around Rs 1,000 per share and is up 30% since then. There is still lot of juice left in the stock and we recommend investors to stay invested. The gains will be driven by faster topline growth coupled with backward integration, which will lead to significant improvement in operating margins. Investors with a mid-term horizon of 2-3 years can add this stock to their portfolio kitty.

BUSINESS:
Bhushan Steel is a secondary steel producer and mainly produces value added flat products. It gets more than twothird of its revenue from cold rolled and galvanized steel products. Bulk of its revenue comes from the automobile and white goods sector, which uses the flat products predominantly.

It has three plants, located strategically in different parts of the country. The Dhenkanal plant in Orissa is close to the raw material source and manufacturers sponge iron and billets, the primary steel products. The Khopoli plant in Maharashtra and Sahibabad plant in Uttar Pradesh are close to the two auto hubsin India namely Pune and Gurgaon. These two plants primarily manufacture cold rolled and galvanized products used by the auto companies. It has a close to one million ton capacity for cold rolled products, which is used as a key input for other value added products.

FINANCIALS:
The company’s topline has almost doubled in last four years to Rs 5,000 crore in FY 2008-09. The net profit, however, grew at a faster rate during the same time period.

For last four years, the company has been making significant capex to link its operations backwards and to become more integrated. Bulk of this capex program is being financed through debt. As a result, its debt-equity ratio has increased close to four, from the two earlier. This is not a major concern given its higher interest coverage ratio (more than 5). The company has expanded its operating margin by around 500 basis points over last two years to 20.4% in FY 2008-09. In fact, its operating margin in September 2009 quarter increased to around 26%, thus reflecting the partial impact of backward integration. Its return on capital employed (ROCE) of 10% for last several years appear to be lower. But this is a result of higher capital expenditure made during the same time period.

GROWTH DRIVERS:
The company plans to make a structural change in its business model to become an integrated steel company. The management feels that at a time when primary steel producers are planning to produce more value added products, it is imperative for the company to integrate itself backwards to remain competitive in secondary market.

The integration process itself will be completed in two steps. In first step, the company will set up around 2 million tons of hot rolled coil (HRC) and 0.3 million tons of slab capacity by this year-end. The HRC capacity will be further augmented to 5 million tons by FY ‘13. In second step, the company will start mining iron ore and coal from the mines allocated to it. This process will take around 4-5 years.

Hence, the full impact of integration, from mining to value added steel products, can be seen from FY ‘14 onwards. The company has already spent 50% of total capex required for all these expansion programs.

VALUATION:
The full impact of first phase of expansion will start flowing into the financials of the company from FY ‘11 onwards. As a result of this backward integration, its net profit margin is expected to rise to 15-16%, from the current 9%. This will also boost the company’s operating cash flow significantly.

The earning per share (EPS) for FY ‘10 and FY ‘11 is estimated to be Rs 171 and Rs 243 respectively. At the current price level, the forward price-earning multiple works out to be 7.9x and 5.6x for FY ‘10 and FY ‘11 respectively. The company’s scrip has always traded at a P/E multiple in the range of 13-17 during good times. This provides significant upside potential for investors with a horizon of 2-3 years.
Source : Economic Times

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Saturday, December 5, 2009

Alphageo India - Stock Analysis With Stock Rating

After dismal performance in the last fiscal, Alphageo India’s business improved in FY2010 (the current fiscal) and the growth momentum continued in Q2FY2010 despite it being a seasonally weak quarter.

The spectacular performance in Q2FY2010 was largely on the back of execution of Rs39 crore order from the Oil and Natural Gas Corporation (ONGC) in Cauvery basin (the same was highlighted in the stock update dated September 24, 2009).

What’s more, the outlook for the second half is also encouraging. Though the ONGC order worth Rs43 crore has still not commenced and could get delayed to the next fiscal, the company is likely to show robust growth in H2FY2010 on the back of execution of orders from private operators like Essar group (Rs9.4 crore), Adani group (Rs17 crore) and Selan Exploration Technology (Rs12 crore).

The order pipeline from fresh tenders is also healthy and the company hopes to announce more new orders from private operators in the coming months. The efforts to reduce the company’s dependence on public sector oil companies (like ONGC and Oil India) are yielding results now both in terms of better revenue growth outlook and improved utilisation of resources (seismic crews).

Stock Valuations
Given its strong performance in Q2FY2010, healthy order book position and improving client profile, we have significantly upgraded the estimates for FY2010 and FY2011. Consequently, we have upgraded our recommendation to Buy stocks with the price target of Rs. 297 (12x FY2011 earnings).
Source: Sharekhan stock trading broker

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IPO Information - JSW Energy Ltd.

Incorporated in 1994, JSW Energy Limited (JSWEL) is a group company of Jindal South West (JSW) group headed by Mr.Sajjan Jindal. The JSW Group has a presence in the steel, power, cement, software, and infrastructure sectors.

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Experts see cheerful end to 2009, choppy mkts in 2010

Check out: Must-have stocks and sectors in this season


Wkly Tech Analysis: 17,370 critical for upside


TECHNICAL ANALYSIS: Index Outlook — Awaiting the Santa Claus rally
The pause at the threshold is so long-drawn that the Sensex appears frozen around 17,000. With even a stunner such as the Dubai debt fiasco scarcely causing a ripple in the market's serene mood, the index appears set to finish this year ...

RECOMMENDATION: Consider bull call spread on Nifty
INDEX STRATEGY. Traders can consider a bull call spread on Nifty by buying Nifty Dec 5,100 call, which closed the week at Rs 117 and selling Nifty Dec 5,300 call which closed at Rs 35. This bull spread will cost you Rs 83. The cost of setting ...

INSIGHT: Choosing between options and futures
Trading interest in options has gradually increased over time. Today, individual traders employ strategies ranging from buying plain-vanilla index calls to sophisticated strategies involving relative-value trades on equity options. Yet, it ...

RECOMMENDATION: Bank Nifty appears weak
STOCK STRATEGY. Bank Nifty (9,097.2): After touching its 52-week high recently, the index has been on a downtrend. The outlook appears negative as long as Bank Nifty stays ...

STOCKS: Tata Steel: Hold
Investors may consider holding on to their Tata Steel shares. Uncertainties at its acquired European operations have been the key challenge for this profitable integrated low-cost steel producer, whose Indian and South East operations continue ...

IPOS: DB Corp – IPO: Invest
Investors can consider subscribing to the initial public offer of DB Corp, a print media company that publishes the widely read Hindi daily, Dainik Bhaskar. Its strong regional footprint in the Hindi speaking states has enabled it to ...

STOCKS: Federal Bank: Buy
Investors with a penchant for risk can consider buying the Federal Bank stock at the current levels. The stock seems to be undervalued despite the bank displaying strong growth in earnings in the last ...

RIGHTS ISSUE: City Union Bank — Rights Offer: Subscribe
A very low offer price makes the 1:4 rights offering from City Union Bank a good investment proposition. The company expects to raise Rs 48 crore from the issue. At the rights offer at Rs 6 per share, which is at a 76 per cent discount to ...

STOCKS: Techno Electric & Engineering: Buy





Src: Economictimes, Valuenotes, Indianstocksnews.com, Moneycontrol.com, Businessline.in

My Favourite Personalities

Deepak Parekh

Deepak Parekh is the Chairman of HDFC, the India's leading housing finance company. A pioneer in mortgage finance, he has enabled scores of Indian middle class people owning their houses or apartments through affordable loans.

A chartered accountant, Deepak Parekh began his career with Ernst & Young Management Consultancy Services in New York. After returning to India, he worked with Grindlays Bank and also Chase Manhattan Bank as its assistant representative for South Asia. Deepak Parekh joined HDFC in 1978. He was promoted as its Managing Director in 1985 and appointed its Chairman in 1993. He is instrumental in making the HDFC a premier housing finance institution in the country. Deepak Parekh is also the Non-Executive Chairman of Infrastructure Development Finance Company Ltd (IDFC), a Government of India enterprise for infrastructure projects in 1997. He is also the Non-Executive Chairman of Glaxo India Ltd & Burroughs Wellcome (India) Ltd and on the Board of Castrol BP India; Hindustan Lever; Siemens Ltd, Mahindra & Mahindra and Indian Hotels Company. He is also a non-executive, independent Director of SingTel.

Deepak Parekh has been a member of various Committees set up by the Government of India. He was appointed Chairman of the high level expert committee, formed to recommend measures for strengthening the Unit Scheme – 1964. The Reserve Bank of India appointed him Chairman of the Advisory Group for Securities Market Regulation, which was tasked to compare the level of adherence to international standards in India with that in other countries. He was also Chairman of the Expert Committee constituted by the Ministry of Power to look into the reform efforts in the power sector.

Deepak Parekh has won several awards including Businessman of the Year 1996 by Business India and the JRD Tata Corporate Leadership Award by All India Management Association (AIMA). He was the first recipient of the Qimpro Platinum Award for Quality for his contributions to the services sector and the youngest recipient of the prestigious Corporate Award for Life Time Achievement by the Economic Times. He was also conferred Padma Bhushan by the Government of India.

[edit] References

• http://people.forbes.com/profile/deepak-s-parekh/86998
• http://www.peopleandprofiles.com/ProfilesDet-28/Deepak+Parekh.html?profile_id=320
• http://profit.ndtv.com/2009/01/11133433/Profile-Deepak-Parekh.html

MOre @ http://en.wikipedia.org/wiki/Deepak_Parekh

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Sunil Mittal

Sunil Bharti Mittal, born October 23, 1957 is an Indian businessman. He is the chairman and managing director of the Bharti group. The US$5 billion turnover company runs India's largest GSM-based mobile phone service. He is the son of the late Sat Paul (former MP) and Lalita.[5]

unil Bharti Mittal
Born	October 23, 1957 (1957-10-23) (age 52) Ludhiana, Punjab, India
Residence	South Delhi
Ethnicity	Indian
Alma mater	Punjab University Bachelor of Economics & Political Science [1]
Occupation	Founder, Owner, Chairman and CEO of Bharti Airtel
Net worth	▲US $ 8.2 billion (2009) [2]
Religious beliefs	Hindu
Spouse(s)	Nyna [3]
Children	Eiesha and twins Kavin & Sharvin [4][1]
Website www.airtel.in

More on : http://en.wikipedia.org/wiki/Sunil_Mittal



Src: Wikipedia.Org

My Favourite Personalities

Ratan Naval Tata

Ratan Naval Tata (born December 28, 1937, in Mumbai) is the present Chairman of the Tata Group, India's largest conglomerate founded by Jamsedji Tata and consolidated and expanded by later generations of his family. He is also the chairman of major Tata companies such as Tata Steel, Tata Motors, Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, The Indian Hotels Company and Tata Teleservices.

Ratan Naval Tata
Born	December 28, 1937 (1937-12-28) (age 71) Bombay Presidency, British India
Residence	Mumbai, India
Nationality	India
Ethnicity	Parsi
Citizenship	India
Alma mater	Cornell University Harvard University
Occupation	Chairman of Tata Group
Home town	Mumbai, India
Religious beliefs	Zoroastrianism
Spouse(s)	Never married
Children	2 Girls (adopted)

Early life

Ratan Tata was born into the wealthy and famous Tata family of Mumbai. He was born to Soonoo and Naval Hormusji Tata. Ratan is the great grandson of Tata group founder Jamsetji Tata. Ratan's childhood was troubled, his parents separating in the mid-1940s, when he was about seven and his younger brother Jimmy was five. His mother moved out and both Ratan and his brother were raised by their grandmother Lady Navajbai.

[edit] Early career

Ratan Tata completed a BSc degree in engineering with structural engineering from Cornell University in 1962, and the Advanced Management Program from Harvard Business School in 1975.^[1] He joined the Tata Group in December 1962, after turning down a job with IBM on the advice of JRD Tata. He was first sent to Jamshedpur to work at Tata Steel. He worked on the floor along with other blue-collar employees, shoveling limestone and handling the blast furnaces.^[2] Ratan Tata, a shy man, rarely features in the society glossies, has lived for years in a book-crammed, dog-filled bachelor flat in Mumbai's Colaba district and is considered to be a gentleman extraordinaire.^[3][4]

More @ http://en.wikipedia.org/wiki/Ratan_Naval_Tata

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Chanda Kochhar

Chanda Kocchar
Kocchar at the World Economic Forum's India Economic Summit 2009
Born	November 17, 1961 (1961-11-17) (age 48) Jodhpur, India
Occupation	CEO and MD, ICICI Bank
Children	A son and a daughter

Chanda Kochhar (born November 17, 1961) is currently the Managing Director (MD) of ICICI Bank and Chief Executive Officer (CEO). ICICI Bank is India's largest private bank and overall second largest bank in the country.^[1][2] She also heads the Corporate Centre of ICICI Bank. Kocchar has also consistently figured in Fortune's list of "Most Powerful Women in Business" since 2005. In 2009, she debuted at number 20 in the Forbes "World's 100 Most Powerful Women list".

More @ http://en.wikipedia.org/wiki/Chanda_Kochhar

Src: Wikipedia.org

There could be correction in Jan: M Stanley

There could be correction in Jan: M Stanley

italic;"> Sridhar Sivaram , ED, Morgan Stanley.


It is very interesting to see that Morgan Stanley is actually negative on PSU banks and positive on private sector banks. What would the logic out there be?

Well, our view is that we could see a tightening cycle coming very soon, may be in January itself. Typically what we have seen in the past is that when we have a tightening cycle, the PSU banks tend to underperform this sector and market in general because broadly they are seen as a bond proxy. Some of that may have changed, so we would go by that view and we think in a volatile interest rates environment, the private sector banks are better positioned as opposed to the PSU banks.

So you would not get tempted to buy into the PSU banks simply because they are just so much cheaper?

Well, as I just said we are broadly underweight the PSU banks, so I would not say that within the PSU basket, there would not be banks, which may look attractive at various points of time but you have to keep in mind that PSU banks as a basket have always traded cheaper to the private sector banks. So to that extent, the discount would always be there.

The question obviously comes that there is a possibility of the earnings moving up because of deposit re-pricing and stuff like that but what we understand is that this is already known in the market and there is nothing special about this but what could come as a surprise is the accent of the CRR hike, the extent of the tightening cycle going forward. We do not where the inflation currently is because this data is not being shared right now, but, our own internal estimate is that inflation could be closer to 7.5-8% by March, which basically would mean that we would have to tighten with GDP at 7.9%, IIP double-digit growth. These are all ingredient for a tightening cycle to come much faster than what the market expects.

In light of the fact that yes, there could be a bit of tightening if you will. What about some other interest rate sensitive? Say for example, real estate, there are lot of IPOs also in the pipeline currently, one has opened today. How would you view this space?

Well, I would not comment on specific stocks but as a sector, we would be underweight the sector. Again with the same view that we would like to stay underweight interest rate sensitive as much as possible, so real estate is obviously one of them because of the tightening cycle and obviously as you mentioned, there is enough paper coming in the market, so there will be enough movement within stocks because people who already own may want to look at some of the other stocks. So we would be underweight the real estate sector also.

Consumer discretionary, which is autos would also be the other sector, which we would want to stay underweight, especially the passenger vehicle market. The two-wheeler market is less sensitive to interest rates, so broadly as you would understand what interest rate sensitive sectors and stocks are. We would broadly be underweight those sectors, and we will see how things pan out from thereon.

There could be a correction in January if interest rates actually go up but if growth continues, markets could continue to move up, say

Click to see Morgan Stanley's view on the current market.

1|2|3|4|5|Next >

Src: Economictimes.Indiatimes

Heard on the street

Heard on the street

Punters zoom in on Time Technoplast Shares of Time Technoplast, a firm specialising in polymer products, witnessed a flurry of activity on Tuesday. On the National Stock Exchange (NSE), the stock rose 13.3% to close at Rs 43.05, with around 58 lakh shares changing hands. This included a bulk deal of 50 lakh shares, with Deutsche Equity Fund being the seller, according to the disclosure on the NSE website. No details of the buyer(s) were revealed. Market talk is that a clutch of mutual funds picked up the block on offer, with Reliable Mutual Fund accounting for a sizeable chunk. The company reported an earnings per share (EPS) of Rs 3.30 for FY09, and the EPS for the first half of the current financial year has not been spectacular at Rs 2.16. Talk is that the fund has been aggressively buying mid-cap stocks recently in anticipation of the next wave of bull run in the segment. MF distributors may again be left out in the cold The mutual fund industry, which is still to come to turns with the no-load regime, has been in the news of late following a debate over the need for a no-objection certificate (NoC) from an investor seeking to change distributors. With the market regulator clearly displeased with what it views as a restrictive trade practice, the industry and, in particular, the asset management companies and distributors have come under the regulatory scanner for following a practice which is against investor interest. The buzz on the street is that the AMFI-appointed committee (comprising 2-3 fund houses) has put forward the results of its analysis to Sebi. Initial feedback indicates that the requirement for an NoC will be done away with but the new distributor will not get trail commissions. The news has evoked mixed reactions from the distributor community. Most of them feel that without the trail fees there will be no incentive for a distributor to service his client. The ball is now in Sebi’s court. Motilal Oswal sales head joins to Abu Dhabi fund Jayesh Parekh, a former top institutional sales official at Motilal Oswal Financial Services, is believed to have joined Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund owned by Abu Dhabi. However, ET could not confirm the role of Parekh, who was rated the top salesperson for India in the AsiaMoney Brokers poll recently, in ADIA. Earlier, ADIA had roped in Mihir Vora, equities head of HSBC Asset Management, as a fund manager. (Contributed by Santosh Nair, Deeptha Rajkumar & Nishanth Vasudevan)

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	Two attractive mid cap picks Sanjay Chhabria
	Polaris Software Labs: Buy at CMP Rs177 Nirmal Bang
	Cipla: Healthy growth going forward Punam Choudhary
	Technical Picks: Havells, Power Finance Corp HDFC Sec

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Src:Economictimes, Valenotes

Check out 12 attractive stocks of low-profile sectors

Check out 12 attractive stocks of low-profile sectors

Companies with attractive growth opportunities 7 Dec 2009, 1025 hrs IST

Print Save EMail Write to Editor

Kiran Kabtta Somvanshi of ET Bureau Little tracked sectors like glass, paper, basic industrial materials and packaging offer stocks with attractive growth opportunities. An ETIG study shows that there are at least dozen good companies belonging to such low-profile sectors like glass, paper, abrasives, electrodes, packaging and others. The following 12 companies, while being relatively small in size, hail from sectors that are typically clubbed under the category of 'miscellaneous'. Check out the power-packed dozen companies. Next >>

ABC Paper 7 Dec 2009, 1025 hrs IST

Print Save EMail Write to Editor

Latest Quotes | Charts | News/Announcements | Quarterly Results | P&L | Price History This Rs 200-crore Chandigarh headquartered company is engaged in the manufacture of wood-free writing and printing paper through the use of wild vegetations and agro-residues. The growth in the value-added paper segment in the country presents an attractive opportunity for this company with an unconventional business model. From making a loss in FY06, the company has grown to register a profit of Rs 14 crore in FY09 and Rs 18 crore for the trailing twelve months ended September 2009. The company has also paid dividend in last three years with the average payout ratio of 15%.

For More On this @ Check out 12 attractive stocks of low-profile sectors

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Src: Economictimes.Indiatimes

Nifty likely to face resistance at 5300

Nifty likely to face resistance at 5300

December could be the fourth-straight month where the market may continue to be in range, as depicted by options data for that particular month

Top 5 picks of the day Where are mkts headed? Check dividend yield Switch fund & realign

barring past few days in October.

Positional range for the Nifty seems to be 4800 on the lower side and 5200-5300 on the higher side. The 5000 put has a maximum build-up, but we believe it’s more of buying and we don’t assign more than psychological weightage to it.

The build-up in 5300 call option, of late, indicates call buying, as implied volatility for the same is around 21% and such low IVs in this long expiry (December 31, 2009) indicates the same. Buying of FIIs in index option also supports the argument. Very rarely, in the history of this market, we have seen the market crashing significantly from its highs if the market spends time near the highs in the form of consolidation as we are doing now. Otherwise, falls are immediate and furious.

Against this backdrop, we would suggest buying at-the-money or slightly out-of-money calls of the Nifty, as indices likely to breach the much-talked about resistance zone of 5180-5200. Having said that, it won’t be a run away rally. The new resistance for the Nifty will be 5300.

Also Read

→ Profit-booking may interrupt D-St ride

→ Markets to remain volatile with negative bias: Analysts

→ Indian cos' add $5.33 bn to their US m-cap in a week

→ Eight-year cycle: Sensex may hit 21,000 jackpot in 2011

→ Rs 58,000 cr blocked with cos suspended by BSE & NSE

So, if the market consolidates in a narrow range, then it will be midcaps which will gather attention. In fact, it has already started. Case in point: Banking and IT. Large caps are consolidating, but mid-caps are showing significant price as well as open interest appreciation. Among large caps, Reliance Industries’ 1080, 1095 and 1110 calls have seen substantial build-up, and we believe this congestion zone is resistance for the stock.

Bharti Airtel has rallied from lower levels predominantly, because of short-covering. Call writing in 320 call suggests upside is limited. BHEL has good support around 2170-2180 levels and good shorts standing in it. We expect short-covering to take place.

By - Siddarth Bhamre, Fund Manager-Derivatives, Angel Broking

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Top 5 picks of the day I Mid-term picks I Where are mkts headed?

Bull's Eye: Yes Bank, Mahindra Satyam, Tata Motors, Bajaj Hindustan, Nestle


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Reaction from double top

he market tested the 2009 high and corrected last week. The Nifty closed out at 5,108.9 points for a week-on-week gain of 3.4 per cent while the Sensex was up 2.8 per cent at 17,101 points. The Defty gained 4.5 per cent as the rupee hardened sharply.

Advances outnumbered declines and breadth in terms of traded shares was good. But volumes were on the low side of average in both cash and derivatives markets. The FIIs were net buyers while domestic institutions sold in small quantities. The BSE 500 rose 3.9 per cent while the Midcaps were up 5.3 per cent. The Junior was also up over 5 per cent.

Outlook: The market tested the 2009 high of 5,181 and reacted from that level. This is a double-top, which has short-term negative significance. A reaction clearly started on Thursday and Friday. There’s good support above 5,000 and the reaction may end there. The long-term trend and intermediate trends both seem positive.

Rationale: Although the double-top suggests resistance at 5,181 is very strong, the week saw a breakout that established a pattern of higher highs. Coupled to higher lows in the past fortnight, this indicates strongly that the intermediate trend is positive. The long-term trend still appears to be climbing, given a rising 200-day moving average.

Counter-view: Opinions differ on the persistence and strength of a double-top pattern. If the double-top causes just a short-term correction, support will come in just below current levels. However, this was a major top in that 5,181 was a 52-week high. So the correction may have deeper or more long-term implications. If the market closes below 5,000, we will probably see another bout of range-trading between 4,800-5,000.

Bulls & Bears: Friday saw a reaction and the market closed towards the lower end of the day’s trading range. Sectors which appeared to be hard hit included banks and real estate companies – these sectors had both gained strongly in tandem before the correction started. Until the reaction bottoms out, banking and realestate are likely to lose more ground than the Nifty. The engineering, power sector and auto stocks appeared to be weak as well but the trends there were more mixed. For example, GMR Infra gained on Friday, while IVRCL lost and these two normally move together.

The pharma sector seems to be quite strong, with many stocks such as Cipla, Glenmark, Divi’s and Torrent gaining substantially. There was also a lot of interest in media stocks with NDTV, TV-18 and of course, the new listing, Reliance Media World generating huge volumes. Some short-covering is taking place in the beaten-down telecom sector where Idea might outperform in the next couple of sessions.

MICRO TECHNICALS

CIPLA
Current Price: Rs 358.95
Target Price: Rs NA

The stock has been bullish since mid-March when it was trading at around Rs 200. The slope of the rise has got steeper and volumes have expanded in the past week. Impossible to project targets since it is in new territory. Keep a trailing stop at Rs 350 and go long. Raise the stop 10 points for a 10-point rise.

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POLARIS SOFT
Current Price: Rs 181.25
Target Price: Rs 174

The stock has started a high-volume reaction from a recent 52-week peak. It is likely to pull back till support at around the Rs 174 level. Keep a stop at Rs 183 and go short. Cover the position below Rs 175. The long-term trend is strongly bullish. Consider reversing the position (double-plus) at Rs 174 when the reaction ends.

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ESSAR OIL
Current Price: 145.45
Target Price: Rs 160

The stock has seen gains from support at around Rs 132. It has also seen volume expansion. There’s strong resistance at Rs 150 but that is a minimum target on the bounce. There is potential for Rs 160 to be achieved. Keep a stop at Rs 143 and go long. Book partial profits at Rs 150.

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TUBE INVESTMENTS
Current Price: Rs 70.2
Target Price: Rs 80

The stock has shot up on huge volume expansion. It has been hitting resistance at above current levels. If it clears Rs 72-74, it would be at a new high with a target of about Rs 80-85. Keep a trailing stop loss at Rs 67 and go long. Increase the position above Rs 73 and move the stop up 5 units for every 5 unit gain.

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AXIS BANK
Current Price: Rs 1,027
Target Price: Rs 990

The stock has support at Rs 1,000-1,010 and that is one possible target. If Rs 1,000 is broken, it could fall to Rs 980. Keep a stop at Rs 1,040 and go short. Partially cover between Rs 1,000-1010. Clear the position below Rs 990.

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Volume gains 07-DEC-09 For the first time since taking over Jaguar Land Rover (JLR) in June last year, Tata Motors returned to profitability at the consolidated level.

Seeking new funds 07-DEC-09 Mutual fund houses are aiming to raise money at a time when the existing equity funds are finding it tough to cope with low inflows and redemption pressure.

Healthy gains for Smart Portfolios 07-DEC-09 The markets rose steadily for the better part of the week on news of robust GDP numbers and allaying of fears on the Dubai repayment crisis.

Markets at a glance 07-DEC-09 Key benchmark indices surged as India’s economy expanded at higher than the expected rate of 7.9 per cent for October.

Gold falls the most in a year 07-DEC-09 Gold dropped the most in a year as a rising dollar prompted some investors to sell bullion on the heels of a rally to an all-time high.

Trading focus on the near-term 07-DEC-09 A northwards breakout early in the week was followed by a correction.

Reaction from double top 07-DEC-09 The market tested the 2009 high and corrected last week.

The hedge opportunity 07-DEC-09 Performance cycles indicate that hedging could be an opportunity and not just an imperfect risk management technique.

Analysts' corner 07-DEC-09 Hindustan Unilever (HUL) continues to witness volume deceleration in some of its key categories despite several re-launches, hefty advertising and pricing action implemented by the company since January 2009.

A long-term play 07-DEC-09 JSW Energy’s track record and high revenue visibility are some clear positives, but the IPO leaves little to gain from in the short-term.

Bankable model 07-DEC-09 Godrej Properties’ growth strategy, past performance and brand equity augur well and will help deliver healthy returns in the long run.

Still soft 07-DEC-09 Tata Steel reported a consolidated loss of Rs 2,707 crore for the September 2009 quarter, its third consecutive quarterly loss.

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JSW Energy IPO Analysis

Bajaj Electricals

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Godrej Properties IPO Analysis

Godrej Consumer Products

Pratibha Industries

ACC /

Wipro /

Bata India

Src: Economictimes, Business-Standard, DP Blog