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Showing posts from June 22, 2008

Market may remain weak

The outlook for the market remains grim for the near term as steaming inflation, record high global crude oil prices and high interest rates threaten the pace of growth in the world's second fastest expanding major economy, driving investors to the sideline or to exit. The wholesale price index rose 11.42% in 12 months to 14 June 2008, above the previous week's annual rise of 11.05%, government data released on Friday, 27 June 2008, showed. Inflation for the year through 19 April 2008 was revised upwards to 8.23% from 7.57%. To tame inflationary pressures, the Reserve Bank of India (RBI) on 24 June 2008, raised its key lending rate viz. the repo rate by 50 basis points to 8.5% with immediate effect, its highest since March 2002 and the second hike this month. The RBI had earlier on 11 June 2008, raised the repo rate, by 25 basis points to 8%. The RBI also increased the cash reserve ratio, the ratio of deposits banks must keep with it, to 8.75% from 8.25% in two 2…

Parsvnath Developers sinks to lifetime low

Parsvnath Developers declined 2.78% to Rs 132.80 at 14:05 IST on BSE despite bagging an order worth Rs 125 crore from the state government of Bihar for building a park in an area of 2.9 million square feet. On BSE, 2.48 lakh shares were traded in the counter. The scrip had an average daily volume of 2.64 lakh shares in the past one quarter. The stock today hit a low of Rs 130 today, which is a lifetime low for the counter. It hit a high of Rs 138 so far during the day. The stock had a 52-week high of Rs 598 on 7 January 2008 The mid-cap company had underperformed the market over the past one month till 26 June 2008, declining 33.33% compared to the Sensex's decline of 12.73%. It had also underperformed the market in the past one quarter, declining 36.61% compared to Sensex's decline of 11.91%. The company has an equity capital of Rs 184.70 crore. Face value per share is Rs 10. The current price of Rs 132.80 discounts its Q4 March 2008 annualised EPS of Rs 23.58,…

Oil is not yet fully priced in stock market’

Large-caps look a better choice: Mitesh Mehta, Enam Securities Chennai, June 26 Markets are battered. Thanks to the two-digit inflation and three-digit oil prices, Sensex has lost 33 per cent value from January highs. "While most of the fears have already been priced in, if oil rises, it can spook the markets again," says Mr Mitesh Mehta, Head (Institutional Sales), Enam Securities Direct. The Business Linecaught up with him on the sidelines of a presentation on equity markets, which also marked the official launch of wealth management and privilege client services for high net-worth investors in Chennai. Here is his take on the way forward for stock market, inflation and specific sectors. Outlook on markets Well, to be very honest, there is no a sure-shot call from here. But I think we have seen most of the correction taking place in the market. So basically now, time is the issue — from when markets start moving up. We feel that most of the negatives are p…

Close Your Eyes and Invest

June 26, 2008 3:11 p.m. EDT R.O.I. By BRETT ARENDS Close Your Eyes and Invest June 26, 2008 3:11 p.m. Wall Street has just plunged another 2%. It's now down nearly a fifth from last year's peak. Other markets around the world are in a tailspin too.My apologies to all those who already know this stuff, but a surprising number don't and at times like this it bears repeating. The further share prices fall, the better they become as an investment.Are you under 60 and saving for your retirement? Are you hoping to build up enough money to put your kids through college, or to look after your parents in their old age, or even to leave something behind for the next generation?Pretty much everybody fits one or more of those descriptions. And if you do, this is the time to find some more money to put into the stock market.Of course it's only the place for long-term money, not cash you will need next year.But by the nature of mathematics, a stock market that has fallen by 20% is goi…

Entertainment tax cuts in Delhi to benefit PVR

Margins could get a boost BL Research Bureau AdvertisementThe Delhi Government's move to reduce the entertainment tax on cinema to 20 per cent from 30 per cent earlier will benefit multiplexes in the city. PVR, in particular, which has a dominant screen presence in Delhi, will stand to gain. Although the move has been made to prompt multiplexes to lower ticket prices, we expect PVR to largely maintain prices at its multiplexes, which target upscale audiences. Lower entertainment tax incidence, as a result of this development, may help boost PVR's operating margins. Entertainment tax takes away a proportion of gross ticket sales for multiplex operators. In order to encourage investment in multiplexes, many States exempt multiplexes from the tax, if they meet certain conditions such as offering certain number of tickets at a low entry price or screen regional films, for instance. Multiplex chains, too, have begun to target these States for their expansion, to avail of…

New fertiliser policy boosts fertiliser shares

Seven fertiliser stocks were up between 0.98% to 12.2% at 15:29 IST on BSE after the Chemicals and fertilisers minister Ram Vilas Paswan today said that the cabinet has approved a new fertiliser policy Meanwhile, the BSE Sensex was up 168.31 points, or 1.21% to 14,392.21, boosted by the US Federal Reserve's decision on Wednesday, 25 June 2008, to keep interest rates unchanged. Fed also signaled that it was in no hurry to raise rates, even as it voiced greater concern about inflation. Deepak Fertilizers and Petrochemicals (up 12.2% to Rs 98.90), Chambal Fertilisers & Chemicals (up 6.71% at Rs 81.15), Gujarat State Fertilizers & Chemicals (up 5.08% at Rs 162.50), Nagarjuna Fertilizers & Chemicals (up 5.59% at Rs 40.60), Tata Chemicals (up 4.61% at Rs 312), National Fertilizers (up 4.96% at Rs 57.15), Zuari Industries (up 0.98% at Rs 238) and soared. The existing fertiliser policy is likely to be renewed with new additions. The price of fertilisers based on phosphorus and…

STRONG BUY NIIT

It was an extremely volatile triple witching day. Strong global cues and continued short covering helped the markets tide over expiry jitters. Nifty closed at 4,316 up 63 points, while the Sensex shut shop at 14,422 up 202 points. Harit Shah of Angel Broking is positive on NIIT.Here's how Harit Shah views the stock: On NIIT:NIIT is the largest IT training company in the country. They have grown at a very rapid rate alongwith the IT industry for the past 2-3 years and they have tracked that industry with a lag. So, that business is growing at 25-30%. Going forward, they are also taking a lot of new strategic initiatives to get into other sectors, such as financial services and management training. It is in a nascent stage but they have the potential to grow at about 100% over the next two-three years. They have also managed to renew their focus on the government schools business. In this particular sector, the penetrations levels are very low. There are players like Educomp also op…

Atlas Copco India Ltd

Atlas Copco India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on June 25, 2008, inter alia, has considered, in principle, the proposal of buy back of shares and decided to defer a decision on the same.

Liberal bonus spurs Hind Rectifiers

Hind Rectifiers rose 3.79% to Rs 153.50 at 12:40 IST on BSE after it announced issue of bonus shares in the ratio of one equity share for each equity share held. Meanwhile, the BSE Sensex was down 9.16 points, or 0.06%, to 14,097.42. On BSE, 33,539 shares were traded in the counter. The scrip had an average daily volume of 6,417 shares in the past one quarter. The stock hit a high of Rs 155 and a low of Rs 148 so far during the day. The stock had a 52-week high of Rs 285 on 3 January 2008 and a 52-week low of Rs 110 on 9 June 2008. The small-cap scrip had outperformed the market over the past one month till 24 June 2008, rising 11.92% compared to the Sensex's decline of 13.71%. It had also outperformed the market in the past one quarter, rising 19.47% compared to Sensex's decline of 12.31%. The company has an equity capital of Rs 1.5 crore. Face value per share is Rs 2. The current price of Rs 153.50 discounts its Q4 March 2008 annualised EPS of Rs 21.72, by a …

HDFC drops on concerns of slowdown in home loan growth

Housing finance major HDFC declined 4.29% to Rs 2,168.90 at 15:41 IST on BSE on concerns higher interest rates will slow down demand for housing loans. Meanwhile, the BSE Sensex was up 113.49 points, or 0.8%, to 14,220.07. On BSE, 1.84 lakh shares were traded in the counter. The scrip had an average daily volume of 2.03 lakh shares in the past one quarter. The stock hit a high of Rs 2220 and a low of Rs 2,136 so far during the day. The stock had a 52-week high of Rs 3,257 on 9 January 2008 and a 52 week low of 1,788 on 17 August 2007. Shares of HDFC, India's largest dedicated housing finance firm by operating income, had outperformed the market over the past one month till 24 June 2008, declining 11.93% compared to the Sensex's decline of 13.71%. It had however underperformed the market in the past one quarter, declining 14.82% compared to Sensex's decline of 12.31%. The company has an equity capital of Rs 284.21 crore. Face value per share is Rs 10. The cu…

JPT Securities witnesses relentless run

Even at a time when the whole market is witnessing a shake-up, JPT Securities has been seeing a relentless run on the Bombay Stock Exchange. The stock has been hitting the upper circuit filter on a daily basis from May 9 when it was quoting at Rs 32.25. On Monday, the stock closed at Rs 137.05 – a return of about 205 per cent in just one month's time. Trading volumes, which used to be a few thousand shares, have also been witnessing steady rise. The stock on Mo nday witnessed a volume of 1.12 lakh shares while on last Thursday 2.03 lakh shares changed hands.According to brokers, the stock has been gaining ground on talk that a close business associate of a big industrial house is accumulating the company's shares. They added that the stock of Horizon Infrastructure Ltd, which the business associate had earlier entered, shot up to a high of Rs 2,040 against its 52-week low of Rs 82.30 on the NSE. Horizon Infrastructure on Monday closed at Rs 1,720, a fall of 2.47 pe…

NSE sees 200 stocks hitting 52-week lows

SBI, Maruti Suzuki, DLF face the bear brunt
Our Bureau AdvertisementMumbai, June 23 It was yet another bloody Monday for the equity market as more than 200 stocks recorded their 52-week lows on the NSE.. Stocks in the banking, real estate, auto and capital goods sectors are the ones that have been battered the most. "Rising price of crude, most likely increase in key interest rates by the RBI to rein in inflation, have all adversely affected our markets," said Mr Alex Mathew, Head of Research, Geojit Financial Services. Of the 30 blue-chip stocks, six stocks posted new lows on Monday.
The stocks that have recorded their 52-week lows include SBI, Maruti Suzuki, Tata Motors, DLF, Unitech, GMR, Reliance Power, ABB, Siemens, Areva, Gammon India, Jain Irrigation, Indian Hotels Company, Sobha Developers and Grasim. In the dip Most of these stocks are trading at less than half of what they were quoting at the beginning of the year. The Sensex itself has dipped more than 30…

Six sectoral indices hit year lows

BSE Bankex, realty indices worst affected in 2008
Our Bureau AdvertisementMumbai, June 23 As many as six key sectoral indices hit their 52-week lows on Monday as the Sensex fell another 2 per cent. The BSE PSU Index , Bankex, Realty, Auto, Power and Capital Goods were the indices that recorded their new 52-week lows on Monday. From its peak in January 2008, the Sensex has tanked 32.6 per cent and these six indices have fallen much more than that. From thier highs at the beginning of the year, these sectoral indices have fallen by more than half of what they were in January. The Auto index has shed 33.3 per cent, PSU has dipped 45.07 per cent, Bankex has fallen 63.06 per cent, Capital Goods has fallen by 48.8 per cent, BSE Power by 50.8 per cent and BSE Realty by 63 per cent since January.
"With inflation reaching such high levels everyone is expecting the central bank to take measures to rein in inflation. The Reserve Bank of India is most likely to increase the repo r…

Rajendra Mechanical Industries shines on bonus plan

Rajendra Mechanical Industries shines on bonus plan Rajendra Mechanical Industries surged 5.26% to Rs 107.15 at 11:35 IST on BSE after the company said its board will meet on 30 June 2008 to consider issue of bonus shares. The company made this announcement after trading hours on Friday, 20 June 2007. Meanwhile, the BSE Sensex was down 312.68 points, or 2.15%, to 14,258.61 on negative cues from global markets. US stocks fell sharply on Friday, 20 June 2008 as rising oil prices and warnings of more mortgage-related write-downs at banks reignited investor fears of worse to come. On BSE, 1,982 shares were traded in the counter. The scrip had an average daily volume of 1,379 shares in the past one quarter. The stock hit a high of Rs 111.95 and a low of Rs 104.05 so far during the day. The stock had a 52-week high of Rs 241.75 on 2 January 2008 and a 52-week low of Rs 40.25 on 27 June 2007. The small-cap company had outperformed the market over the past one month till 20 Jun…

Madras Cements strengthens on stock split, bonus proposals

Madras Cements jumped 8.24% to Rs 2978 at 10:34 IST on BSE after the company said its board will meet on 30 June 2008 to consider stock split and issue of bonus shares. The company made this announcement after trading hours on Friday, 20 June 2007. On BSE, 2,732 shares were traded in the counter. The scrip had an average daily volume of 2,342 shares in the past one quarter. The stock hit a high of Rs 3100 and a low of Rs 2900.50 so far during the day. The stock had a 52-week high of Rs 5039.85 on 31 October 2007 and a 52-week low of Rs 2301 on 9 June 2008. The mid-cap company had outperformed the market over the past one month till 20 June 2008, declining 4.40% compared to the Sensex's decline of 13.82%. It had underperformed the market in the past one quarter, declining 14.26% compared to Sensex's return of 2.82%. The company has an equity capital of Rs 11.90 crore. Face value per share is Rs 10. The current price of Rs 2978 discounts its Q3 December 2007 annua…

Maruti Suzuki: strong Buy

The recent move into the alternative fuel segment and the introduction of diesel versions for some models will help the company combat the spike in petrol prices.

Mr S. Nakanishi, MD…The change to a richer product mix will reward the company in terms of better realisations. Parvatha Vardhini C AdvertisementWe recommended a 'buy' on Maruti Suzuki in early February at Rs 904. At that time, the company's strong sales numbers in the backdrop of rising interest rates, its market leadership position in the compact cars segment and improved product mix in the A2 (compact) and A3 (midsize) segment, were expected to translate into good earnings prospects for the company. These positives notwithstanding, the stock has shed about 20 per cent since our recommendation. The fall (partly due to broader market volatility too) is attributable to three reasons — a moderation in growth in monthly sales numbers since December, fall in net profits in the fourth quarter and apprehensi…