Sensex moves closer to 14,000 level: Mid-caps jumps 58.55 points and Small-caps jump 71.66 points:Crude reaches $63.55/ Barrel: ABC India Ltd, Conart Engineers Ltd, Soma Textile Industries Ltd and Roto Pumps Ltd Closes with Good Volumes: Rally should start in Samkrg Piston & Rings Ltd mirroring the trend in the Auto Stocks:Book Partial Profits in Tilaknagar Industries and Haldyn Glass Ltd: Hold Gravity(I) Ltd. with a 10% Trailing Stop Loss:
Indian Bourses continued their relentless upmove as it made an all time high edged closer to 14,000 level. A smooth rollover from November contracts on Thursday to December series coupled with robust GDP growth data released during trading hours on Thursday, lifted Sensex by 148.47 points today. Auto scrips, PSU banks and index heavyweight Reliance Industries led today's market rally.
Sensex jumped about 1% to settle at 13,844.78 a record closing high. It is now just about 150 points away from the next psychological level of 14,000.
S&P CNX Nifty advanced 43.10 points or 1% to settle at 3,997.60, a record closing high. It hit a high of 4001.30 which is a record high for the index.
The BSE clocked a turnover of Rs 4,451 crore compared to Thursday's Rs 4854 crore.
The market breadth was strong. 1484 shares rose on BSE as compared to 1080 shares that declined. 72 stocks were unchanged.
A marked feature of the market's latest rally has been surged in small-cap and mid-cap shares. Even as the Sensex was striking string of record highs over the past few days, small-cap and mid-cap stocks had lacked momentum.
From 6,531.39 on 28 November, BSE Small Cap Index has risen 187.35 points or 2.8% in the past three trading sessions to current 6,718.74. From 5,651.21 on 28 November, BSE Mid Cap Index has gained 124.21 points or 2.1% in three days to current 5,775.42. Sensex had added 242.83 points or 1.7% in this three-day period from 13,601.95 on 28 November.
The market sentiment remains bullish due to strong FII-inflow and an upward revision in earnings growth of corporates by brokerages, on the back of strong Q2 results. There are expectations that FIIs may step up buying this month as allocations will be made for New Year calendar 2007. FII inflow in 2006 has reached $8.7 billion compared to a record inflow of $10.7 billion in 2005.
Sensex is up 47.3% in calendar 2006 so far. From 4,644 on 23 June 2004, it has galloped 198% in less than two-and-a-half years. A section of the market attributes the solid surge on the Indian bourses to increasing recognition of India's long-term growth prospects. India's growth drivers are a favourable demography (large share of young population), robust domestic consumption and acceleration in infrastructure creation.
In today's trade, Ranbaxy Laboratories surged nearly 4% to Rs 385.60, with the stock rallying in late trading after the company announced the acquisition of Be-Tabs Pharmaceuticals, the fifth largest generics company in South Africa, for $70 million.
Auto shares dominated the proceedings on decent-to-strong sales numbers for November. Bajaj Auto rose 4% to Rs 2,751 after its total sales rose 33% in November 2006, to 2,43,713 units from a year ago. Bike sales rose 36% to 2,14,321 units and sales of three-wheelers were up 71% at 29,384 units. Exports rose 56% to 36,086. Samkrg Piston & Rings Ltd which is one of the finest auto ancillary Companies closed flat. The company should do well due to restructuring exercise it carried some time back. It alsol came out with Scintillating results in the September quarter. A rally could come at anytime in this scrip so remain invested.
Hero Honda rose nearly 2% to Rs 757.35. Hero Honda today launched two variants of its CD series motorcycles, CD Deluxe and CD Dawn, in the 100-cc, entry-level segment.
Tata Motors surged 4% to Rs 844.25, on expectations of strong sales for November 2006. Tata Motors is likely to disclose its monthly sales figures today.
Car major Maruti Udyog added nearly 3% to Rs 952.60. In early-trade today, the car major reported selling 55,033 vehicles in November, a 16.1% rise from a year earlier. The company said domestic sales rose an annual 20.7% , to 52,574, but exports fell 35.7% to 2,459 units.
PSU banks were in demand after the latest data showed lower-than- expected rise in inflation. SBI was jumped 4% to Rs 1,369.90. The stock hit Rs 1,370, which is a life high for the scrip.
Cellular services provider Reliance Communications rose 3.7% to Rs 445.25. The scrip struck Rs 446.90, an all-time high. A staggering 16.8 lakh shares changed hands in the counter on BSE.
Reliance Energy gained 2.2% to Rs 540.05. As per reports, Maharashtra Electricity Regulation Commission has directed the company to discontinue levy of load management charges.
Reliance Industries gained 1.3% to Rs 1,262.25. A strong 7.4 lakh shares changed hands in the counter.
A host of power equipment makers/solutions provider to the power sector surged. Alstom Projects jumped 9.7% to Rs 468.90, Bharat Bijlee gained 7.9% to Rs 1205, ABB surged 7% to Rs 3747, Voltamp Transformers gained 5.8% to Rs 631.80, Areva T&D rose 5% to Rs 972.10, Siemens advanced 4.7% to Rs 1182, and KEC International gained 3% to Rs 390. There also some movement in my recommended scrip RTS Power Corporation Ltd. The stock was recommended at Rs.92.55.
Construction firm Punj Lloyd jumped 7.6% to Rs 1112 after the firm said it had won an order worth Rs 1000 crore to construct a plastics plant in Thailand.
Gas cylinder maker Everest Kanto Cylinder jumped 10% to Rs 606.50 on expectation that the firm would announce a large order in the next few days.
Travel firm Thomas Cook (India) jumped 10% to Rs 564.05 ahead of the company's board meeting to consider merger and acquisition proposals.
Sponge iron and steel maker Raipur Alloys and Steel jumped 14% to Rs 140 after the company said Friday Reliance Long Term Equity scheme of Reliance mutual fund has bought a 9.62 percent in it. The fund acquired about 1.26 million shares on Nov. 29, the company said.
Essar Shipping jumped 17.8% to Rs 27.80. The company today said it had received a letter from a promoter, Essar Shipping & Logistics, to delist the company's shares from the BSE. The company has called a board meeting on Saturday to consider the delisting move.
McLeod Russel India rose 2.6% to Rs 109.95 on reports the company has acquired 72 percent stake in Moran Tea Co. for Rs 41.50 crore. The acquisition of Moran Tea would add Rs 32 crore to Rs 33 core to McLeod's annual revenue, Managing Director Aditya Khaitan said. The company already acquired Doom Dooma Tea Estate in Assam.
Paramount Communications jumped 8.5% to Rs 255. The scrip rose on heavy volume of 37.1 lakh shares on BSE. A block deal of 2,67,268 shares was executed in the stock on BSE, at Rs 247. Ihad recommended the stock at Rs.192 on last August.
Global Vectra Helicorp jumped 20% to Rs 192, on reports that the government is planning to raise FDI limit to 74% in helicopter services, non-scheduled airline operations and regional airlines using small aircraft. The current ceiling for airline services is 49%.
Shoppers' Stop rose 3% to Rs 702.25, after the company formed a 50:50 joint venture with Swiss firm The Nuance Group, a global market leader in the airport retail space, to operate duty free shops at international airports in India.
Ispat Industries was flat at Rs 11.09. The company has reduced prices of hot-rolled coils by Rs 400 - Rs 600 per tonne with immediate effect.
Tamil Nadu Newsprint & Papers gained 1.5% to Rs 94. The company said on Friday that Reliance Growth Fund and Reliance Portfolio Management Services, have picked up an additional 0.32% stake in the company. This would take their collective stake to 5.08%
Nandan Exim dropped 5% to Rs 10.55 in volatile trade. Initially, the scrip had surged 5% to Rs 11.65 after a block deal of 5 lakh shares was executed in the scrip on BSE at Rs 11.45.
Steel Strips Wheels rose 3% to Rs 155.90, after the company said on Friday its November sales of wheel rims rose to 4,10,086 units, up 35% from a year ago. It produced 400,824 wheel rims in November compared to 2,68,555 rims a year ago.
Flex Industries (up 20% to Rs 82.65) surged for the second day in a row after the company said on Thursday that the merger of two other group companies, had been cleared by the Delhi High Court. Group companies, Flex Engineering and FCL Technologies, will be merged with Flex Industries, enabling accumulation of resources under a single entity that will provide end-to-end packaging solutions.
Financial Technologies shed 1.8% to Rs 2,062. The company on Thursday said it had got in principle approval from the Financial Services Commission, Mauritius, for setting up an international multi-commodity exchange styled Global Board of Trade.
TRF lost 0.8% to Rs 425. The company said on Thursday, ACC has cut its stake in the company by 2%, bringing down its stake to 4.54%.
HCL Infosystems rose 0.3% to Rs 165. The personal computers market recorded 24% growth in the third quarter ended 30 September 2006. HCL Infosystems has retailed its number two slot with a market share of 12%.
Graphite India rose 1.4% to Rs 303, after the company fixed 18 December 2006 as a record date for 5-for-1 stock-split.
Keep accumulating or Hold, ABC India Ltd, Samkrg Piston & Rings Ltd, Conart Engineers Ltd(after booking some partial profits), Gravity(I) Ltd, Roto Pumps Ltd, BSEL Infrastructure Realty Ltd, Garnet Constructions Ltd, DS Kulkarni Developers Ltd(after booking some profits in the counter), Soma Textiles Industries Ltd, Paramount Communications Ltd, Gateway Distripark Ltd (GDL) and Gujarat Hotels Ltd. with Appropriate Stop Losses.
Radhe Developers India Ltd will have an Extra-Ordinary General Meeting (EGM) of the members of the Company on December 22, 2006, inter alia, to consider the following:
1. To increase Authorised Share Capital of the Company.
2. To obtain consent of members for raising of additional capital.
This will absorb the profits generated by the company in future like Alok Industries Ltd. I had recommended this company at Rs.9.5 last year when they came out with big proposals, but till date they have failed to deliver. Earlier there were reports in the media about their proposed IPO and Rights Issue. After my recommendation it generated lot of fodder for the media. Exit Radhe Developers Ltd on Monday morning without any failure. Congrats!! to those who have triped their money once and doubled their money twice after my recommendation. This is the power of holding a scrip for medium to long term.
Modus Operandi:
Best approach in the Equity Market(Boradly Speaking) is to take a Loan from Government or an NBFC at 12%--18% interest per annum and invest in any scrip and hold it for the Medium to Long term----I mean for a minimum period of 8 month to 18 months or till Individual Targets are achieved.
Caveat:
1. Loans should be taken only for companies whose Stories are known and tipped to perform in the period mentioned. Further, it should only be taken when the bull run has started or when the scrip is available at an attrative valuation in a Bear Phase.
2. The loan amount should not be more than One Month's Income of the individual / person or 10%---20% of the total yearly income of the person. Say total Yearly Income of a person is Rs.1 million and hence the loan amount should not exceed 2 lakhs or 2 hundred thousand rupees per annum. This should be followed strictly and "by the book".
Brief Description on ABC India Ltd:
ABC India Ltd has been a pioneer in the field of Logistics since its inception more than 38 years ago when there were hardly any other organized cargo transporters in India.
Last year ABC India Ltd had a turnover of more than $23 Million USD.
Today, ABC India Ltd is serving India and the world through a network of more than 150 locations all over the country and associates across the world.
All these locations are linked by ABC's own technologically advanced information system.
ABC India Ltd has its own fleet of trucks, hydraulic trailers and Prime Movers that have a capacity to carry a single package of up to 800MT.
ABC India Ltd has more than 650 skilled and experienced full time employees that are committed to making your move simple.
ABC India Ltd also owns more than 15,000 cubic meters of storage space and advanced equipment to facilitate loading and unloading of your cargo.
ABC India Ltd has its own Custom House Agent License to facilitate the Customs clearance of imported or exported cargo.
With this entire infrastructure ABC India Ltd is perfectly poised to provide effective solutions to every transportation need, from essential multi-modal, multi-location cargo handling to complicated turnkey projects.
It functions across 6(six) major domains:
a) Turnkey Projects
b) Surface Transport
c) International Freight forwarding
d) Exports / Imports
e) Integrated Logistics
f) Household goods movement
Major Achievements:
ABC INDIA LIMITED, have completed some prestigious assignments, which were not only challenging and dramatic in nature, but also required specialized knowledge in diverse subjects and appropriate infrastructure.
They include:
1. Moving a package weighing 450 MT over a distance of 70 Km, the heaviest single package transported on Indian soil ever.
2. Employing A.R.T.S. (Aircraft Recovery & Transportation System) for the first time in South-East Asia at Indira Gandhi International airport, New Delhi to move a disabled Air France Boeing Aircraft.
3. Moving 8 Heavy Lifts of nearly 100 MT each from Kolkata to Agartala (Tripura) by River cum Road service using Indo-Bangladesh river corridor for the first time in the country.
4. Moving and erecting a gigantic monolithic statue of Lord Buddha, the tallest in the world weighing 320 MT, in the middle of Hussain Sagar Lake, Hyderabad.
5. Transporting a Heavy Drum weighing 140 MT using the Lattice Girder Mechanism from Vizag Port to Bhadrachalam using bridges over the River Godavari having multiple spans of 20 X 45.75 meters and 48 X 43.70 meters.
6. Transporting a 250 MT Boiler from Kolkata Port to Farakka by barge on a sub-channel of the River Ganges and offloading the same for movement to site through RORO Jetty, constructed for this operation.
7. Transporting Heavy Lifts weighing upto 126 MT in Colombo, Sri Lanka using its own equipment.
8. Transporting heaviest Package weighing 197.5 MT with dimension of 13.60m X 7.52m X 7.70m at Haldia with dimensions.
9. Transporting 6 packages 180 and 197 MT using 96 Hydraulic Axles in a convoy from Kandla (Gujarat) to Anta (Rajasthan) and so on....
Some of the Completed Projects:
1. NEEPCO-KOPLI Hydro Electric Project--->From Calcutta Port to Khopoli
2.NHPC Salal Hydro Electric Project-->From Delhi, Bangalore....
3. NHPC-CHAMARA-H.P---->From Mumbai Port
4. EIL-Bongaigaon Refinery Complex---> From Bongaigaon-Assam
5. EIL-NALCO/Talcher,Orissa-->From Calcutta to Vizac
6. IFFCO-AONLA Project,U.P---->From Mumbai to UP
8. CIMEC(CHINA) Briganj Sugar Factory--->From Calcutta Port to Nepal
9. NTPC-Ramagundam,A.P---->From Chennai to Vizac and so on....
The book value of the shares of the company is Rs.54.24 and EPS of Rs.2.8. But the EPS is set to increase drastically as the Government goes on decreasing the price of Petroleum products. The government has already decreased the price of Petrol and Diesel some days back and such moves will continue unless Crude Oil rises above $65/Barrel. There are also some political compulsions to decrease the price of petroleum productrs; as elections are due in some of the states of Indian Union.
More in the following postings .........
Best regards,
Suman Mukhopadhyay
India.
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