WINNING STROKES: THINK DIFFERENT:
Lok Housing and Construction Ltd hit the buyer freeze. Those who have bought the shares on my advice must be enjoying now. The real estate sector is expected to shoot in the days to come due to cheap credit. Kamanwala Housing Construction Ltd also hit the buyer freeze on
the same logic.
the same logic. However Unitech Ltd is down, today as some profit booking was advised in the Sunday Report sent to the Paid Groups.
U B Engineering Ltd, another of my recommended scrip hit another buyer freeze. The scrip has been continuously hitting the buyer freezes since it was I mentioned that in the Yahoo Groups, that I am heavily invested in the scrip. It is a Vijay Mallya Group company.
ASM Technologies Ltd, which I call mini-Infosys Technologies Ltd hit the buyer freeze. The company should benefit hugely from the Rupee Depreciation.
Kohinoor Broadcasting Corporation Ltd hit the buyer freeze. The Paid Groups were suggested to buy the scrip at the current levels.
Phoenix International Ltd hit the buyer freeze on the news that Focus Energy Ltd, is coming up with gas production from 2009. This would strengthen the balance sheet of the former. Phoenix International Ltd properties in North India from which it gets steady rental income. It is also opening a shoe park in Chennai.
My Recommended Crest Animation Studios Ltd hit the buyer freeze on good volume. The company has tied up with a production house in the US and is making three animated movies.
English Indian Clay Ltd nearly hit the buyer freeze on the news that the company's co-generation plant has started production. The volume of the shares traded is also considering the average daily volume in the scrip. The Company could now apply to the international bodies for Carbon Credits, which it can sell at a hefty premiums. The company is coming up with rights issue at Rs.1000, which means the management has pegged the intrinsic value of the shares of the company above Rs.1000 (or >Rs.1000).
The company is having mines and is doing extremly well. Its September, 2008 quarter reuslts are simply outstanding. The demand for the company' s products are so high that it is coming up with another Strach Manufacturing plant in Shimogha, to meet this growing deamand. The company is already benefitting from the substantial fall in the price of raw materials.
There is also another breaking news coming in English Indian Clay Ltd, probably this week. I am sure everyone will like that breaking news.
Ennore Coke Ltd is trading near the buyer freeze, due to some positive news in the company. The company as already mentioned has already purchased some mines, whose due deligence would take some time.
Reliance Industrial Infrastructure Ltd is up more than 16% today. Those who have invested in counter, last week hearing my advice, should be enjoying now.
I have been advising all to buy infrastructure stocks, on the premise that any slowdown will have very little effect on the Infrastructure Sector. But who cares, TV analysts "hai na" to confuse all and give wrong direction.
Cherry Picking of the stocks would continue in the Indian Bourses.
The key benchmark indices pared gains in early afternoon trade as index heavyweight came off higher level. Though the BSE Sensex was up 364.45 points or 3.76%, it has shed more than 200 points from the day's high. The market pared gains even as the Prime Minister assured business leaders that government will take measures to protect growth.
A surprise rate cut by the central bank over the weekend, the stock market regulator’s decision to increase tenure for lending and borrowing of stocks, and firm Asian stocks, had lifted Sensex by 570.57 points at the onset of the trading session.
Lower rates boosts stocks as they help lift corporate bottomline by way of lower borrowing costs. The Reserve Bank of India (RBI) on Saturday, 1 November 2008, unexpectedly cut its main short-term lending rate for the second time in as many weeks to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis.
The Securities & Exchange Board of India (Sebi)'s decision to extend the tenure for lending and borrowing of stocks is aimed making the domestic stock lending and borrowing (SLB) mechanism more robust and increase liquidity in the secondary markets. Short selling refers to selling of shares one does not own and a SLB mechanism facilitates this activity.
Prime Minister Manmohan Singh told top business leaders on Monday, 3 November 2008, that the government will take all the necessary monetary and fiscal policy measures to protect growth. The Prime Minister also said the government was working closely with other countries to ensure coordinated policy action for the containment of the global financial crisis.
Asian stocks edged up for a fifth straight day on Monday, 3 November 2008, on hopes policy efforts so far to dampen the impact of the financial crisis would ultimately take hold, though data still painted an ugly picture of the global economy. Key benchmark indices in China, Hong Kong, Taiwan, Singapore and South Korea rose by between 0.25% to 4.45%.
At 12:20 IST, the BSE 30-share Sensex was up 364.45 points or 3.76% to 10,155.99. The index jumped 570.57 points at the day's high of 10,358.63 in early trade. The Sensex rose 348.19 points at day’s low of 10,136.25 in early afternoon trade.
The S&P CNX Nifty was up 89.50 points or 3.1% to 2,975.10.
The BSE Mid-Cap index was up 3.8% at 3,321.72 and the BSE Small-Cap index was up 4.31% at 3,927.44. Both the indices underperformed the Sensex.
The market breadth was strong. On BSE, 1,843 shares advanced as compared to 508 that declined. 52 shares remained unchanged.
India’s largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) was up 2.87% to Rs 1,410.50, off day’s high of Rs 1,445, on reports its retail arm Reliance Retail and UK-based supply-chain firm Wincanton have called off their proposed joint venture (JV). Wincanton withdrew from the JV after it thought RIL was unlikely to meet its initial growth projections and generate expected volumes, a media report quoted sources as saying.
Airline stocks spurted after government scrapped the basic customs duty of 5% on jet fuel and after oil firms slashed jet fuel prices. SpiceJet, Kingfisher Airlines and Jet Airways jumped by between 5.12% to 12.83%.
The sale price of aviation turbine fuel (ATF) has been reduced by 15-17% across the four metros. This will help bring down costs of domestic airlines. In the near term, it will reduce their losses. In the medium term it may lead to fare reductions. This is primarily because fuel constitutes 45-50% of the operating cost of most domestic airlines.
Meanwhile, oil rose above $68 a barrel, reversing earlier losses of over $1, as Asian stock markets climbed on signs of improvement in credit markets, buoying investor confidence. US crude rose 44 cents to $68.25 a barrel in Asian trading on Monday, 3 November 2008, after falling as much as $1.13.
Capital goods stocks jumped. Larsen & Toubro and Suzlon Energy rose by between 3.66% to 7.04%. India’s largest electric equipment maker by sales Bharat Heavy Electricals (BHEL) jumped 5.34% on reports of seeking an expression of interest for turbines and generators of 700 megawatt and above for nuclear power plants.
Power stocks also rallied. NTPC, Tata Power Company, Reliance Infrastructure, Reliance Power, Power Grid Corporation of India gained by between 2.24% to 11.33%.
Banking stocks jumped after Reserve Bank of India’s latest initiative to prop up liquidity in the financial system, with hopes lower rates will boost lending. India’s largest private sector bank by net profit ICICI Bank jumped 9.8% as American depository receipt (ADR) spurted 7.18% on Friday, 31 October 2008 in US. India’s largest commercial bank State Bank of India rose 9.33%.
India’s second largest private sector bank by net profit HDFC Bank gained 4.01%, as ADR jumped 1.41% on Friday.
India’s largest home loan lender by operating income HDFC rose 7.11%.
Many PSU banks rose. Punjab National Bank, Bank of India, Bank of Baroda, Union Bank of India, Federal Bank, IDBI Bank, Canara Bank, Indian Overseas Bank, Allahabad Bank, IndusInd Bank rose by between 3.41% to 7.34%.
The central bank today asid it would conduct a special 14-day money market operation for mutual funds and non-banking finance companies (NBFC) on Monday, 3 November 2008, for a cumulative amount of Rs 60000 crore ($12.2 billion) to help meet their liquidity needs.
Meanwhile, the government is reportedly considering floating a special purpose vehicle (SPV) to buy non-performing assets of domestic banks to protect the financial sector from wide-spread defaults. The proposal for creating an SPV is being debated by the finance ministry and the regulators as a pre-emptive step to protect the financial sector from widespread defaults, the reports added.
Auto stocks jumped as lower interest rates may spur sales which are largely driven through finance. India’s largest commercial vehicle maker by sales Tata Motors rose 11.7% even as company said October 2008 sales fell 20%, the largest drop in at least four years, as tighter lending and a slowing economy damped demand for commercial vehicles.
India's largest car maker by sales Maruti Suzuki India rose 9.31% even as total sales fell 7.09% at 64,490 units in October 2008 over October 2007. India’s largest tractor maker by sales Mahindra & Mahindra rose 0.87%.
India’s largest motorbike maker by sales Hero Honda Motors fell 1.78% on fall of more than 3% in sales at 3,52,449 units in October 2008 over October 2007.
Bajaj Auto slumped 6.23% after October 2008 motorcycle volumes fell 34% at 1.63 lakh units against 2.48 lakh units in the same month last year.
Rate sensitive realty stocks rose on hopes lower interest rates would spur demand for residential poperties. Indiabulls Real Estate, DLF and Unitech rose by between 3.85% to 9.87%.
Nagarjuna Construction Company jumped 6.76% after company secured two new orders worth Rs 527 crore.
IT stocks shrugged off weak ADRs and a stronger rupee. India's third largest IT exporter by sales Satyam Computer Services rose 1.74% to Rs 310.50, even as ADR fell 2.24%. India's fourth largest IT exporter by sales Wipro rose 3.53%, even as ADR declined 5.26%. India's second largest IT exporter by sales Infosys gained 0.89%, as ADR gained 0.03%.
India's largest IT exporter by sales Tata Consultancy Services jumped 2.23%, on reports of entering genetic diagnostics and medicine after clinching some pharma deals in the last two years.
A stronger rupee affects IT firms negatively as they earn most of their revenues in dollar terms. The rupee rose in opening deals after the rate cut by the central bank and took liquidity boosting measures over the weekend. The partially convertible rupee was at 49 per dollar, compared to Friday's close of 49.44/46.
Jindal Drilling & Industries galloped 10.74% on bagging a large order for rig deployment.
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Similarly, 6 (six) month old SumanSpeaks member would get some discounts in the Portfolio Management Service. This is line of my earlier principle of rewarding those Free Group members who had stayed with me or support me during the dark days. The said discounts are available for a brief period of 15 to 20 days. For more details please send me a mail at any of the folllowing e-mail addresses:
