Morning calls

Shell-shocked investors dump RNRL


MUMBAI: Traders and investors in Reliance Natural Resources, or RNRL, watched in dismay on Monday as more than a fourth of the company’s market capitalisation was wiped out in what is being seen as a strong response to an unfavourable share-swap ratio with group firm Reliance Power.

The stock crashed 27% to close at Rs 46.40 as investors reacted to Sunday’s announcement that shareholders of RNRL would get one share in Reliance Power, also controlled by billionaire Anil Ambani, for every four shares they hold in the natural gas supplier. Most RNRL shareholders and analysts had counted on a swap ratio of one share of Reliance Power for every three they held in RNRL.

RNRL’s fall on Monday figures high in the list of stocks that have been pummelled the most in a single trading session. Realty firm Unitech is perched on top with its stock having slid 51% in October 2008 followed by Chennai-based pharma company Orchid, which slumped 39%.

Brokers say the stock could be under further pressure in the near term as many traders have heavily short sold the July futures. In short selling, an investor or trader sells a stock he does not own, betting on buying it later when the price slides.

Interestingly, the outstanding positions in RNRL July futures declined 7% while the futures closed at a premium of Rs 0.15 to the spot price. According to market participants, this indicates that many traders had squared off their short positions by purchasing the falling futures. They added these traders would have short sold the futures last week, in anticipation of an unfavourable merger ratio.

'RNRL shareholders stand to gain'

These traders are upset at what they reckon is an attempt by promoters to place their interests ahead of minority shareholders. Promoters control close to 85% in Reliance Power, and about 55% in RNRL.

Reliance Power CEO JP Chalasani told television channels that RNRL shareholders would benefit in the long run because of their exposure to the generation portfolio of R-Power.

More @ Shell-shocked investors dump RNRL


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Analysts' corner

Trading desk

BHARTI AIRTEL
Current price: Rs 267.5,
Target price: Rs 275

The stock seems to have made a mini upside breakout and it should have a target of Rs 275 on Tuesday. Keep a stop at Rs 265 and go long. Add to the position between Rs 269 and Rs 270. Start booking profits above Rs 274. If the scrip can close above Rs 275 on Wednesday, it will have a potential upside till Rs 285. This is worth bearing in mind if you can hold a futures position. On the downside, if support at Rs 263-265 is broken, the scrip could drop till Rs 255.

ONGC
Current price: Rs 1,285,
Target price: Rs 1,270

The stock is reacting after testing Rs 1,350 on the upside. It has hit what should be reasonable support at the first Fibonacci level. The pattern suggests a fall till Rs 1,270 (roughly the next Fibonacci level). The futures (Rs 1,295) is at premium to spot. Short the future with a stop-loss at Rs 1,305 and a target of Rs 1,270. Increase the position below Rs 1,285 and clear below Rs 1,270.

TATA STEEL
Current price: Rs 471,
Target price: Rs 460

The stock is still in a downtrend. The futures (Rs 464) is at discount to the spot and a target projection to the Rs 450 level can be made. In this case, it may be better to short the spot, though the position can't be rolled over. The one-session target could be about Rs 460. Take a short position with a stop-loss at Rs 477 and increase it below Rs 468. Start taking profits below Rs 462.

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Src: ET and Etc

Market cautious over rate hike, global mood

Market cautious over rate hike, global mood

MUMBAI: Banks, real estate and automobile shares could lead the stock market lower on Monday, after the Reserve Bank of India (RBI) raised interest rates sooner than expected to combat inflation.

With the Reserve Bank of India expected to go in for another increase in policy rates during its upcoming review on July 27, the market undertone is cautious, as investors fear these rate hikes may hamper economic growth. Weak global markets last week may also contribute to the subdued mood in the market.

Trading is seen light on Monday, as the nation-wide strike by opposition parties, protesting the recent fuel price hikes, would impact attendance in broking and investment houses. But market participants don’t expect any sharp fall throughout this week, unless the situation in European economies worsen.

“RBI had to make this move to curb inflation. So, it will be factored in after the initial shock,” said Jitendra Panda, assistant vice- president, Motilal Oswal Financial Services.

RBI on Friday evening raised the repo rate — the one at which banks borrow from the central bank — and the reverse repo — the rate at which the RBI absorbs money from banks — by 25 basis points each, after the wholesale price index inflation rose to 10.2% in May from 9.6% the previous month.

US markets fell on Friday, as the first decline in monthly non-farm payrolls this year for June and the biggest drop in factory orders in 14 months for May heightened fears of a slowing economic recovery.

“A run of weaker data has renewed investor concerns about the durability of the global recovery. We would caution against any substantive re-evaluation of the economic outlook, however,” said Barclays Capital, in its weekly note.

Back home, banks, real estate and auto shares could drop on concerns the rate hikes could dampen demand for loans, homes and vehicles.

Meanwhile, the boards of Reliance Power and Reliance Natural Resources (RNRL) on Sunday decided to fix the merger swap ratio at 1:4. The merger swap ratio is in line with the two companies’ market capitalisation, or the value of the total shares at ruling market price.

At Friday’s close, RNRL’s market capitalisation stood at Rs 10,394 crore, nearly one-fourth of that of R-Power’s Rs 41,979 crore.


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Reliance Power, RNRL merger ratio fixed at 1:4

Rate hike, rains and corporate results to shape the market

State-owned OMCs may revise fuel prices every fortnight

Check out stocks that are expensive but good for investors

Stocks which are expensive but still good for investors
5 Jul 2010, 0705 hrs IST

ET takes a look at stocks which are expensive but stil good for investors.

Bull's Eye: NIIT, Grasim Industries, Persistent Systems, Asian Paints, ITC
5 Jul 2010, 0415 hrs IST

Citi has upgraded NIIT from `Sell/High Risk’ to `Buy/Medium Risk’. It has set the target price at Rs 85 based on 15 times estimated earnings per share for September ‘11.

Ulips not favourable for policyholders of pension plans
5 Jul 2010, 0347 hrs IST, SKANDITA AGRAWAL

The new guidelines for Ulips are a mixed bag. While investors will gain from the higher insurance cover and reduced charges, it’s not favourable for policyholders of pension plans.

Max New York's pension plan 'SMART' not flexible in terms of features
5 Jul 2010, 0327 hrs IST, SKANDITA AGRAWAL

The cost of the product is a little high from the standpoint of the policy administration charges.

It is unlikely that Europeans economies will fail: Peter Staal
5 Jul 2010, 0248 hrs IST, Jigar Desai & Karan Sehgal

ET Intelligence Group caught up with Peter Staal, Head of Banking, Asia, Americas and the UK, ING Group.

Hindalco Industries good for long-term investment
5 Jul 2010, 0205 hrs IST, Abhineet Singh

Lower cost of operations, higher volumes and improved margins augur well for Hindalco. Investors with a long-term perspective can consider the stock.

Insecticides India looks attractive for long-term investors
5 Jul 2010, 0148 hrs IST, Parul Bhatnagar

Insecticides India is likely to gain from the increase in production capacities. The stock looks attractive for long-term investors.

Finolex Industries an attractive bet for long-term investors
5 Jul 2010, 0129 hrs IST, Ramkrishna Kashelkar

Finolex Industries' capex plans and higher cash earning ability make it an attractive bet for long-term investors.

Go for Hindustan Media Ventures only in secondary market
5 Jul 2010, 0116 hrs IST, Rajesh Naidu

Long-term investors should weigh the option of investing in Hindustan Media Ventures only in the secondary market.

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Indian stocks fare best among BRIC peers in first half of 2010

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Src: ET, Smartinvestor, HDFC Sec

Mark Mobius not worried about China growth

Mark Mobius not worried about China growth


PARIS: Templeton Asset Management's Mark Mobius is still bullish on China despite data this week showing manufacturing there was losing steam.

The benchmark Shanghai Composite Index has lost 28 per cent this year while Hong Kong's Hang Seng Index is down 9 per cent, falls Mobius said were a good buying opportunity as the correction removed some of the froth in valuation levels.

"In some ways we are very happy with the recent correction because things are getting cheap again ... We are still buying in China," Mobius, a prominent emerging markets fund manager, said on Friday.

Chalco, PetroChina and Denway Motors are among the top holdings of Templeton Emerging Markets which has about $40 billion invested in emerging and frontier equities.

Mobius also said in a news briefing that China's economy was still booming and consumption in the world's third largest economy would continue to rise at a fast pace.

"Our projection for growth in China is about 10 per cent. Sure, it could come down, but 9 per cent is still terrific, and even 8 per cent is still good," Mobius said. The sharp drop in Chinese stocks this year reflected worries over the momentum of the economy, he said, but was also the result of the country's massive IPO pipeline.

"There has been too many new shares coming in the market, too much money being drained out," he said. RUSSIA Mobius was also bullish on Russian stocks, citing the country's growth outlook and stocks' relatively low price-to-earnings ratios. "We saw Russian stocks at very reasonnable levels, and have found good opportunities.

Actually, we have been doing more in Russia than anywhere else lately," he said. "Russian companies have restructured their debt and are in a position to start growing by making capital investments. That will produce results in 2011 and 2012." Templeton Emerging Markets' top holdings in Russia include shares in Gazprom, LUKOIL, Rostneft and Uralkali.


To know About Mark Mobius See 1500th Post

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'Nothing can stop Nifty from moving up, except monsoons'

RNRL, RPower Boards to consider merger tomorrow

RBI hikes key policy rates by 25 bps to tame inflation

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Punters game for big play on IFCI counter

Market volatility rises as bears tighten grip


Nifty remained range-bound and was struggled to break the 5366 mark recorded on Thursday. A break above 5366 can lift the Nifty towards 5450 levels. But the chances are remote because the ongoing tussle between bulls and bears may end in favour of bears.

The daily declining open interest of Nifty put-call ratio (PCR) and volume PCR are in favour of bears. The increased implied volatility of Nifty put options at 5200 and 5100 clearly indicates weak market breadth. This can be re-confirmed if Nifty closes at or below 5214.

The NSE VIX is gaining upward momentum and represents uncertainty, which may rule for the time being in the market. The Nifty out-of-the-money call options have lower implied volatility than at-the-money call options, hinting strong call writing by bears.

On the put option side, higher implied volatility at out-of-the-money put option infers buying of put options. However, a decline in open interest of the in-the-money put options indicates profit-booking by put buyers on an intra-day basis because of lack of conviction about the future course of the market. The Nifty Bank Index is showing signs of fatigue and it can fall towards 9301-9100 levels.

With the given Nifty outlook, put-ratio-spread strategy on Nifty is more suitable. Buy one lot of July 5300 put at Rs 131 and sell two lots of 5100 put options at around Rs 65. The maximum profit will be around Rs 9,950 at 5100 level. The maximum loss of Rs 50 if Nifty moves above 5300 on July expiry, and the down-side break-even point will be at 4901.

This strategy is a classical example of delta-neutral strategy. The risk will be minimal in nature if we will recalculate the net deltas on a weekly basis to eliminate the trading risk completely.

(Alex Mathews, Head-Research, Geojit BNP Paribas Fin Svcs)



Heard on the street: Punters game for big play on IFCI counter

Punters game for big play on IFCI counter

Who says defensive stocks belong only to the fast moving consumer goods (FMCG) and pharmaceutical sectors? If a handful of influential market participants get together, they can confer that tag to any stock of their choice, or so it appears.

IFCI is turning out to be one such stock which operators turn to for a quick buck in uncertain market conditions. The stock has been a happy punting ground for day-traders, operators and short-term institutional players right for some years now.

It is usually a safe haven for bull traders who take up positions and spread rumours about favourable government policies. By the time smaller players realise they have been taken for ride, the big fish have already cashed out. This has been the pattern at the counter for at least three or four times a year since 2007.

The latest buzz is that IFCI will be granted a banking licence in a few days. Volumes in the stock have surged in the past couple of sessions, with nearly 4 crore shares being traded on the National Stock Exchange (NSE) alone.

The stock held firm in a falling market to close at Rs 57.80, up 1.5% over the previous close. Either the smaller punters are being set up for the kill, or the big boys are accumulating shares on privileged information.

HPCL may find pride of place in Nifty, again

What goes round comes around, and this seems especially true of some of the stocks that form the benchmark indices. Speculation is that the renewed interest in oil marketing shares could eventually lead to a higher weightage for the segment in the Nifty.
Hindustan Petroleum (HPCL), which was excluded from the index in 2007, is being talked of as one of the possible entrants. If the stock does manage to re-enter the Nifty, it will become the second company since Hero Honda to achieve that distinction.

However, some market players are sceptical if HPCL will be able to regain its place, since the oil sector is already well represented in the index by Reliance Industries, ONGC, Cairn and Bharat Petroleum.

There is also speculation of some stocks being excluded from the Nifty, with Suzlon Energy topping the list of probables. The stock on Thursday has the least weightage in the Nifty, with market capitalisation down 85% from its peak of Rs 65,459 crore seen in January 2008.

(Contributed by Santosh Nair)

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Shoppers Stop: Profiting from rising consumption

Stock and Market Views

Global crisis won’t affect India much: Macquarie Capital


Michael Carapeit, ED and global head of Macquarie Capital, is no stranger to India. Of Armenian descent, Mr Carapeit was born in Kolkata and studied in the city till 1974, after which his family migrated to Australia. His message to Indian companies looking to expand overseas is: dominate your home market before setting your sights abroad. In an interview with ET, Mr Carapeit says that the second half of 2010 will be much better for equity markets globally. Excerpts:

Is the worst of the European debt crisis over? Do you see some more unpleasant surprises?

We have a pretty good view of what the issues are, but the actual solutions are country and organisation-specific. From our point of view, we broadly see the economies moving into a positive territory. There will always be pain and there will always will be good times, regardless of market sentiment.

From an investment banking point of view, there are lots of M&A transactions happening right now, be it in the financial institution space or governments privatising infrastructure and utilities. A falling euro has seen many manufacturing firms across Europe becoming very competitive on a pricing basis than they would have been 18 months ago.

In Asia, we have a high single-digit growth and the actual ability to now source quality European equipment far more cheaply. It is a much more compelling proposition, and as a result, we see the manufacturing sector in countries, such as Germany, doing quite well. Financial services are going to be a challenge for a while, and obviously, the sovereign debt problem is there for everybody to see.

Do you see more M&As happening from Asia into Europe?

Yes, much more. We have seen Indian companies do this progressively over time. Larger players have had international operations for a while. The strategic issue for many companies is when you have such strong domestic demand where do you allocate your scarce capital.

In my opinion, unless you dominate your home market, it’s pretty hard offshore. I see many companies, very often, say that well, the domestic market is very competitive, so let me try elsewhere. It is quite rare that a niche player in the home market can go offshore and suddenly become successful.

How do you see India faring relative to other emerging markets?

Very well, actually. The vast majority of the Indian economy is driven on a domestic basis. While not totally immune to what is happening around the world, it is a much more domestic demand-driven story rather than an international story for most of your companies.

Mega companies that have operations around the world will have to take these changes into account. The bulk of the Indian economy and majority of the Indian companies are going to see a 7-8% growth this year and if you are linked to GDP that is quite a good place to be to what is happening elsewhere.


More @ Global crisis won’t affect India much: Macquarie Capital




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On the verge of a collapse

On the verge of a collapse

With the S&P 500 now closing at a new low for the year 2010, the US markets are now on the verge of a collapse. A clear downward break out has not happened in the Dow as yet, but if the neckline of the head and shoulders formation breaks, it could be catastrophic in these days of high frequency trading market that shoots first and asks questions later.

The S&P closed at 1041 after touching 1035, a fall of 33 points or 3.10%. What’s more important, it closed below the closing low of 1050 (7th June) and broke the intraday low of 1040 (25th May).

The Dow closed at 9870 after touching 9812, a fall of 268 points or 2.65%. The Dow’s lows are still intact. The closing low of the Dow is 9816 (7th June) and intraday low of 9757 (8th June).

The technical behavior of the markets yesterday had more do with fundamentals than mere weak technical of Asia.

The Conference Board, a private research firm, on Tuesday cut its leading indicator index for China, sending stocks and commodities across the globe sharply lower. The research group said it revised down the index - which aggregates six indicators that measure economic activity in China -- to growth of 0.3% for the month of April, down from the previously reported 1.7% gain. With the revision, the index has now slowed from March's 1.2% rise. The research firm cited a "calculation error" for the dramatic change.

Also weighing on the Chinese market, Agricultural Bank of China's initial public offering saw a lower-than-expected pricing range.

European markets fell as investors eyed the $545.5 billion coming due for banks to the European Central Bank on Thursday. In addition to concerns about whether banks will be able to meet their repayments, investors also worried that debt obligations would leave banks with liquidity shortfalls.

A dip in the consumer confidence also made matters worse for the US markets as they ignored a 0.8% rise in home prices in April, according to the Case-Shiller home price index.

What happens to our markets?

Our markets had discounted the revision in the Chinese advanced economic indicators yesterday and by the close, a 100-point dip in the Dow was also accounted for. What has not been discounted is the lower levels seen by the S&P 500 and the possibilities of the Dow now going the S&P way in follow up trading.

Our markets have had buoyancy of their own with Government and the Reliance groups doing their bit to keep the embers hot. But one can’t swim against the current. So any larger positions in these recently loved stocks need to be pruned and those that have missed the bus earlier can try and get on one when these stocks reverse, with an eventual objective of either booking profits in the usual intraday rally that happens after the first two minutes of mourning or get their trades stopped out if the markets continue their fall.

From a fundamental perspective, while the US and European troubles ca still be resolved, there is no panacea for Chinese trouble, even acupressure. We, along with the rest of the world were waiting for the trouble signs to appear in the Chinese economic landscape. This is one.

In plain simple English, the times are getting tougher and we are sitting on huge gains. Don’t be greedy. Take them. Especially in the commodities.

Disclosure : No holdings or trading positions in stocks mentioned or recommended to clients

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Heard on the street: Bajaj Finserv back on punters’ radar

Bajaj Finserv back on punters’ radar

Shares of Bajaj Finserv rose for the fifth consecutive session on Tuesday amid speculation that the company may retain a controlling stake in both its insurance arms even if foreign direct investment (FDI) norms in the sector are relaxed in the future. The stock closed at Rs 436.50, with around 15 lakh shares being traded on both the exchanges, more than twice the two-week average daily volume.

On the National Stock Exchange (NSE), less than one-third of the 10.46 lakh shares that were traded resulted in delivery, underscoring the speculative action on the counter. Bajaj Finserv has an agreement with its foreign insurance partner Allianz SE, whereby the latter can increase its stake in both the life and general ventures once the FDI limit is raised.

Bajaj Finserv currently holds 74% in both the insurance arms, while Allianz has 26%. The stock had taken a beating around 10 days ago when the insurance regulator clarified that Reserve Bank of India’s (RBI) pricing guidelines for equity share transfer to foreign investors will not apply to insurance companies.

Investors were worried that this will result in Allianz being able to hike its stake in Bajaj Finserv at a pre-determined price, which is lower than current valuations, according to analysts’ estimates. The stock had risen to a high of Rs 557.55 in May this year, as analysts felt RBI’s pricing guidelines will lead to higher valuations for the company.

Large mutual fund stocks up on Jay Shree Tea

A heavyweight mutual fund owned by a private sector bank is said to have bought Jay Shree Tea shares for one of its sector funds. The stock closed at Rs 295.30, down marginally over the previous close. The stock, however, has risen over 20% in the past one month, defying the volatile market trend.

Brokers tracking the fund house say it has been a regular buyer in fast moving consumer goods over the past month. But much of these purchases have been of short-term nature, with the fund house sometimes booking profits within a week.

ICICI Pru’s PMS head may move to Reliance MF

Shahzad Madon, who previously headed the portfolio management services (PMS) division of ICICI Prudential Asset Management, is said to be joining Reliance Mutual Fund (MF) as head of its PMS division. Madon, who is learnt to have put in his papers at ICICI Prudential earlier this month, could not be reached for comment. Reliance Mutual Fund officials too were not available for comment.

(Contributed by Deeptha Rajkumar, Harish Rao & Nishanth Vasudevan)

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DowJones Sinks 200 pts in early trade

Stocks Tumble on Global Economic Worries; Dow Sinks More Than 200 Points-

NEW YORK (AP) -- Stocks and interest rates are extending their losses after consumer confidence dropped because of concerns about the economy.

The Conference Board says Tuesday its Consumer Confidence Index fell nearly 10 points to 52.9, down from a revised 62.7 in May. Economists had forecast only a modest drop.

U.S. markets were already down before the consumer report. They followed Asian markets, which fell after data showed that Japan's recovery has slowed. European indexes fell after Greek workers walked off the job to protest budget cuts.

The Dow Jones industrial average is down 238 at 9,901. It had been down 175 ahead of the confidence report. The Standard & Poor's 500 index is down 27 at 1,047. The Nasdaq composite index is down 66 at 2,154.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

NEW YORK (AP) -- Stocks and interest rates tumbled Tuesday after fresh signs of a global economic slowdown spooked investors.

U.S. markets are following those in Asia, which fell when Japanese data showed that the nation's recovery has slowed. And then European indexes fell sharply after Greek workers walked off the job to protest steep budget cuts.

Interest rates fell in the bond market with investors seeking the safety of Treasurys. The yield on the 10-year note dropped to as low as 2.97 percent, the first time it has fallen below 3 percent since April 2009. The yield, which is used as a benchmark for many consumer loans and mortgages, bounced off its low and edged up to 2.99 percent.

Falling yields are a sign that investors are willing to forego potential big gains in stocks for more certain, but smaller profits in bonds.

Investors are worried that the global rebound is weakening. Consumers may be similarly shaken. A report due out Tuesday on consumer confidence is expected to show confidence fell in June after three straight months of gains.

Economists polled by Thomson Reuters forecast the Conference Board's consumer confidence index fell to 62.8 from 63.3 last month. The index needs to climb above 90 to indicate the economy is on solid footing.

Companies have indicated things are getting better, yet there are few signs they are ready to hire in big numbers. The Labor Department's monthly employment report due out Friday is expected to show the unemployment rate rose 0.1 percent to 9.8 percent in June.

In early morning trading, the Dow Jones industrial average dropped 129.01, or 1.3 percent, to 10,011.40. The Standard & Poor's 500 index fell 15.14, or 1.4 percent, to 1,059.43, while the Nasdaq composite index plummeted 39.55, or 1.8 percent, to 2,181.10.

A report that showed home prices rose in April did little to affect trading. The S&P/Case-Shiller home price index 20-city home price index rose 0.8 percent between March and April. The gains, though, are likely being written off because April was the final month when buyers could receive a tax credit. Nearly all housing indicators got a boost in April from the credit, but have since shown a slowdown in the market



Src:Yahoo Finance

Heard on the Street:

Heard on the Street: Sugar stocks get a booster shot on levy hike

Sugar stocks get a booster shot on levy hike

Some mutual funds, including Star Sign Mutual Fund and market operators, are believed to be buying shares of sugar companies. The news that the government is planning to increase levy sugar prices by 30% for the current September-October season has spurred the buying, according to dealers.

The step will help sugar companies post better profits in this quarter. Balrampur Chini surged close to 10% to finish Rs 86.15, supported by heavy volumes. According to dealers, most of the purchases by mutual funds and operators are for the short-term and they could even offload their positions within a week.

IDFC prices QIP at Rs 168.25 a share

Infrastructure Development Finance Company(IDFC) is learnt to have priced its qualified institutional placement(QIP) at Rs 168.25 apiece. India’s leading infrastructure lender plans to mop up close to $575 million through the issue. It has roped in four bankers including Credit Suisse, Morgan Stanley, CLSA and IDFC-SSKI to manage the share sale. The stock closed at Rs 169.90 on Monday, up 0.95 % over the previous close.

(Contributed by Harish Rao & Reena Zachariah)



Look Beyond the Indices

Most market participants pay too much attention to the gyrations of the Sensex or the Nifty and unnecessary worry about their volatility. There are numerous stocks that have more convincing reasons to buy or sell and these may give you more returns in day then what the indices can give you in a month.

Not those individual investors buy the indices but it does distract them from individual stocks. It is difficult for analysts to change their mind sets quickly and by the time you get to see an affirmations of a move from them, its too late in the day.

Take R.Com for instance. The first fundamental recommendation by a large house has come after a 5 weeks and 53% surge. That does not mean the stock does not have more upside, but it only goes to affirm that investors have to carry their own cross.

A few weeks back, we had spoken about the sugar stocks, as to how they seem to have formed a bottom. Yesterday they have broken out of the range bound pattern and demonstrated enough strength to warrant a buy.

The reason we gave at that time was that the industry is expecting some sops from the Government. While the sops are yet to be announced, the surge in the international prices has lit a fire under the sugar pot.

Expect the Government to impose a duty on white sugar imports and to cut the levy sugar quota from the current 20% to something like 16%. Levy quota was last raised form 10% to 20%. More cane crushing expected this year will ensure a higher power output and the raw material prices could be low, giving some relief to the beleaguered sector.

The US markets were confused yesterday. It now dawned on them that if the G-20 is infact going to cut deficits, then where is the growth going to come from?

We will continue to have data from the US that is bearish and stock specific announcements like GTL Infra will continue to present opportunities. If the Saudi investors are going to put money in the stock at 20-25% premium to the then prevailing price, then what stop you from going for the kill now.

We will have to train ourselves in limiting our greed and taking those small profits that come our way or just watch the indices oscillate up and down, worrying a lot but doing nothing.

The choice is yours.

Disclosure : No holdings or trading positions in stocks mentioned or recommended to clients

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Stock Exchanges – BSE and NSE There are two national stock exchanges in the country, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Most large brokers hold membership cards in both exchanges, offe...

Types Of Market Transactions You will find it easier to transact in the stock market once you attain a basic understanding of market mechanics. Before a share is purchased or sold, the investor must instruct his broker ...

Settlement Once you have bought or sold shares, the transaction is complete only when you have got the shares you purchased, or received money for the shares you sold. This is called settlement in stoc...

Auctions An auction is resorted to when there is a default in delivery by a broker. An auction is the exchange’s mechanism through which, in a settlement, a buyer broker gets shares in the eventualit...

Investor Protection Measures In the modern world, stock markets have evolved as important drivers of national economy. Fair and clear-cut rules and regulations are enforced by governing bodies to ensure safety of all pa..

Src: HDFCSEC