WINNING STROKES: THINK DIFFERENT:
Today's short term call RDB Industries Ltd (BSE Code-->526723) to the Paid and Free Groups, hit the buyer freeze with good volume. The company has a number of stories to tell and is going to be multibagger going forward.
Rajendra Mechanical Ltd, manufacturer and distributor of chemical machinery and stainless steel welded and seamless pipes and tubes rose to Rs.40.8 before cooling down a bit. The company would benefit from any fall in the steel prices. It has business model similar to Welspun Gujarat Ltd, which was recommended at Rs.78 and it gave wonderful returns to the shareholders. The stock was recommended around Rs.32.
Yes Bank Ltd moved to Rs.79.6 from my recommended price of Rs.62. This one along with DCB Ltd gave good returns to the share holders. Where is Shankar Sharma now?!! Now the Business Channels who brought in this man and those persons who forwarded his bullshit reports from his brokerage house First Global Ltd, should be fined for fooling the investors. I think he is now hiding after his "Radio-active decay theory" hit him on the face and mutilated him. But, like the editor of businessness channels he is also a shameless fellow and soon you could find him in front of camera. I have stopped reacting to his shits, which he belches out so often in front of the camera.
ASM Technologies Ltd hit the buyer freeze before cooling down a bit. There are rumours that the government of India is readying a package for the Information Technology Sector, in a new way. Moreover, any strength of the US economy is good for the Indian IT companies. But since this company has now changed it policy to focus on its domestic market in a more vigorous way, good days are ahead for ASM Technogies Ltd.
Some marketmen who fooled investors into not investing in the Real Esate Sector are trying to do the same thing with the IT sector. If you want to make money forget the faces of these Chits and Thugs who appear in various Business Channels and try to act as soothsayers. Their myth about non-performance of the IT sector will soon be demolished..Just invest in the IT sector for the time being as this sector is already highly oversold.
Today it was a surprise for me as CNBC TV18 almost narrated my story on English India Clays Ltd, including the land purchase by the company for their upcoming starch project, on their Channel. The story read by a young journalist was almost similar to what I wrote a couple of months back on www.sumanspeaksplus.blogspot.com. What do you all say on this??!!
My this week's Quickie Call, Vijay Shanti Builders Ltd hit another buyer freeze. The last week's Quickie Call is hitting continuous buyer freezes.
My recently recommended Essar Shipping Ltd, Kamanwala Housing Construction Ltd, Paramount Communications Ltd, Phoenix International Ltd, etc, hit another buyer freezes. I have been telling all to invest in Phoenix International Ltd because I know the story in the company, but then who cares as most of them are guided by the "Soothsayers on Television Channels".
Prajay Engineers Syndicate Ltd gave stupendous returns to the Paid Group members in the short time. The stock from my recommended price of Rs.17.5 touched Rs.27.15 today.
Srinivasa Shipping & Property Development Ltd moved to Rs.25.45 before cooling down a bit. The company has huge order book positions, which will soon be disclosed to the Paid Group Members. I have recommended the scrip in earlier occassions also.
KEC International Ltd recommended recently at Rs.112, hit the buyer freeze with very good volume. The company is from the reputed RPG Group of Kolkata.
Reliance Industrial Infrastructure Ltd moved to Rs.420, with good volumes before cooling down a bit. The stock could be heading towards Rs.1500 mark in the days to come. This company is a Proxy to Reliance Industries Ltd as it gets majority of its revenues from the RIL. The company's September, 2008 quarter results are more or less good considering the current market conditions.
Sunday Report Recommended Stock Educomp Solutions Ltd moved up by more than 7.69 % before cooling down a bit. It is a wonderful company in the Information Technology space and is moving towards Rs.2500.
Indowind Energy Ltd move up by more than 6.6% before cooling down a bit. The company is into the business of manufacturing, selling, exporting, importing and dealing all kinds of power generation equipments including wind mills, wind turbines, solar panels, solar modules, wave energy generators, bio-mass and bio-gas plants and all other conventional renewable power generation equipments and spares of power generation equipments. The company like Suzlon Ltd (Recommended at Rs.39 and Rs.42) will benefit immensely from the new government in the US. The Democrats have vowed to strengthen the renewal energy companies so that the US could be less dependent on the Crude Oil. This is going have a rub-off effect on all the renwable energy companies across the world. Indowind Energy Ltd will establish a subsidiary / joint venture Company at "UAE or at any other place outside India". Indowind Energy Ltd has commenced Wind Generation of Power from its 9 Mw projects at Chitradurga, Karnataka, effective March 29, 2008 at 5.00 p.m. onwards. Moreover it has also signed the Power Purchase Agreement with BESCOM (Bangalore Electricity Supply Company), for 18 Mw on April 02, 2008. The most important point is that, "By this the Company has fulfilled one of the objects for which it has gone for an IPO during August 2007." Indowind Energy Ltd will be a multi-bagger going forward.
Expectations that the US Federal Reserve will lay out emergency tools to dispel a recession at a policy meeting later in the day boosted the domestic bourses in late trade. The barometer index BSE Sensex breached the psychological 10,000 level at the fag end of the trading session, with index heavyweight Reliance Industries (RIL) leading the late surge. The Sensex rose 144.59 points, or 1.47%, recovering 186.67 points from the day's low.
Expectations of further fiscal sops from the domestic government and on hopes of additional interest rate cuts by the central bank to shield the domestic economy from the global economic recession also aided the rally. Also supporting the sentiment was buying by foreign funds this month. Foreign funds bought a net Rs 239.40 crore of equities on Monday, 15 December 2008, with their inflow reaching Rs 2,181.70 crore this month.
From a recent low of 8,739.24 on 2 December 2008, the BSE Sensex has risen 1,237.74 points or 14.16% in the past nine trading sessions.
Factory output in India fell for the first time in more than 13 years in October 2008, reflecting a rapid economic slowdown, data released during trading hours on Friday, 12 December 2008, showed. The weak industrial output data for October 2008 has raised expectations of a suitable policy response from the government and the central bank to shield the domestic economy from the global economic recession. There is an anticipation of a second tranche of fiscal sops from the government and additional interest rate cuts by the central bank.
A preliminary data on advance tax payments also reflects strong signs of a slowdown in the economy. Barring mainly government-owned banks, private sector lenders and some of India's largest companies have reported dips in advance tax payments for the October to December 2008 quarter.
The stock market was volatile today, 16 December 2008. After moving between positive and negative zone in early trade, the market firmed up in mid-morning trade. It came off the higher level in early afternoon trade. The market slipped into the red in afternoon trade before regaining positive zone. Volatility ruled the roost in mid-afternoon trade. RIL led a rally in late trade. The Sensex swung 218.90 points between intraday high and low during the day.
European shares edged higher in morning trade on Tuesday, 16 December 2008, reversing early losses after euro zone manufacturing and services activity deteriorated by less than forecast in December 2008. Key benchmark indices in France, UK and Germany were up by between 0.7% to 1.42%.
Trading in US index futures indicated the Dow could rise 8 points at the opening bell. The Fed is widely seen cutting its benchmark rate by at least a half-a-percentage point to 0.5% at its policy meeting later in the day. As rates drop close to zero, investors will focus on whether the Fed gives clues on what further easing measures it will take to steer the US economy away from recession.
The severity of the global downturn set off by a US sub-prime mortgage market meltdown last year surprised policymakers, who have been running out of options after slashing rates to historic lows and rushing out massive stimulus plans.
Asian stocks moved into green from red earlier as expectations mounted that the Federal Reserve will cut interest rates to near zero and may lay out emergency tools to dispel a recession. Key benchmark indices in China, Singapore, Hong Kong, Taiwan and South Korea were up by between 0.07% to 0.55%. However, Japan's Nikkei was down 1.12%.
The BSE 30-share Sensex was up 144.59 points, or 1.47%, to 9,976.98. At the day's low of 9,790.31, the Sensex fell 42.08 points in early trade. The Sensex rose 176.82 points at the day's high of 10,009.21 hit in late trade.
The Sensex hit the 10,000 mark after a period of more than a month. It had previously hit 10,000 level on 11 November 2008. The Sensex had last close above the 10,000 level on 10 November 2008.
The S&P CNX Nifty was up 60.55 points, or 2.03%, to 3,041.75.
The Sensex is down 10,310.01 points or 50.82% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 11,229.79 points or 52.95% below its all-time high of 21,206.77 struck on 10 January 2008.
The BSE clocked a turnover of Rs 4,129 crore today, lower than Rs 4,381.42 crore on Monday, 15 December 2008.
Nifty December 2008 futures were at 3052.65, at a premium of 10.90 points as compared to the spot closing of 3041.75. Turnover in NSE's futures & options (F&O) segment surged to Rs 39,172.96 crore, from Rs 37,645.87 crore on Monday, 15 December 2008.
The market breadth was strong. On BSE, 1,866 shares rose as compared with 648 that declined. 67 shares remained unchanged.
The BSE Consumer Durables index (up 7.44%), the BSE PSU index (up 5.03%), the BSE Oil & Gas index (up 3.3%), the BSE HealthCare index (up 2.48%), the BSE IT index (up 2.38%), the BSE Realty index (up 2.34%), the BSE Bankex (up 2.29%), the BSE Power index (up 2.07%), the BSE Auto index (up 1.57%), the BSE FMCG index (up 1.52%) outperformed the Sensex.
The BSE Metal index (up 0.5%), the BSE Capital Goods index (up 0.93%), the BSE Teck index (up 1.4%), underperformed the Sensex.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 3.64% to Rs 1,386.60, on recent reports the government will shortly move the Bombay High Court requesting it to vacate an interim stay order that restrained RIL from selling gas from the Krishna-Godavari (K-G) basin to companies other than Reliance Natural Resources (RNRL) and state-owned NTPC.
RIL on its part has already appealed against the order. The court's interim order in May 2007 had directed RIL not to create third party interest for the disputed volume of 40 mscmd (million standard cubic metres per day) of gas from the K-G basin.
Meanwhile, RIL's advance tax outgo declined 15.2% in Q3 December 2008 over Q3 December 2007. However, the figures are not comparable because of a huge minimum alternate tax payment of over Rs 400 crore that had boosted the Q3 December 2007 advance tax figure.
India's largest oil exploration firm by revenue ONGC jumped 6.07% after UK-listed Imperial Energy said its agreed takeover by ONGC was not at risk because Lehman Brothers held a miniscule stake. There were concerns that as Lehman Brothers is being shut due to bankruptcy, it is possible any shares it owns might not be tendered. But, Imperial Energy clarified that the investment bank only held 0.01% of Imperial's share capital. It was the major gainer from the Sensex pack.
Real estate shares rose on hopes housing demand will improve following a concessional home loan package unveiled by the state-run banks on Monday 15 December 2008. Housing Development & Infrastructure, Unitech and Indiabulls Real Estate rose by between 1.32% to 14.27%. PSU banks on Monday unveiled cheaper rates on some small home loans.
Banking shares rose on hopes further interest rate cuts by the central bank will boost lending growth. India's second largest private sector bank by net profit HDFC Bank rose 4.1% even as its advance tax payment fell 10.7% to Rs 250 crore in Q3 December 2008 over Q3 December 2007. India's largest private sector bank by net profit ICICI Bank rose 0.74% to Rs 421.55 off from the day's low of Rs 412.65 even as its advance tax payment declined 6% to Rs 470 crore in Q3 December 2008 over Q3 December 2007.
India's largest commercial bank State Bank of India (SBI) rose 2.8% on reports its advance tax payment rose 56% at Rs 1,700 crore in Q3 December 2008 over Q3 December 2007.
Among other PSU banks, Federal Bank, Bank of India Bank of Baroda, Canara Bank, Allahabad Bank, rose by between 0.1% to 2.77%.
India's largest dedicated housing finance firm by operating income HDFC fell 4.13% after state-run banks cut home loan rates. HDFC will have to follow suit to retain market share but a reduction would eat into margins. PSU banks during trading hours on Monday, 15 December 2008, unveiled cheaper rates on some small home loans.
Meanwhile, HDFC's advance tax payment rose 29.76% to Rs 279 crore in Q3 December 2008 over Q3 December 2007.
The Reserve Bank of India (RBI) on 6 December 2008, announced a 100-basis point cut in the repo rate and the reverse repo rate each. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks.
LKP Finance surged 4.91% to Rs 63 after its board approved buyback of shares at a price not exceeding Rs 90 per share, a 42.86% premium over the ruling market price.
Software firms rose after HCL Technologies, India's fifth largest IT major by sales, said it had signed contracts worth more than $1 billion since October 2008, assuaging investor fears of a sharp fall in outsourcing contracts. However stocks pared earlier strong gains. HCL Technologies surged 17.99%, after it said it signed over $1 billion in contracts in October-December 2008, the highest ever in a single quarter, helped by its purchase of British software firm Axon.
India's largest IT exporter by sales Tata Consultancy Services rose 2.37%. India's second largest IT exporter by sales Infosys rose 1.98%. Infosys Technologies had announced on Monday it secured a five year, multi-million dollar global sourcing deal from AstraZeneca. India's fourth largest IT exporter by sales Wipro rose 1.96%. India's third largest IT exporter by sales Satyam Computer Services rose 0.49%. IT firms derive more than 50% of their revenues from the US.
IT stocks shrugged off a firmer rupee. The Indian rupee rose on Tuesday as a broad dollar weakness and expectations of a Fed rate cut helped sentiment, but some demand for the US currency from oil companies averted a sharp rise. The partially convertible rupee was at 47.8100/8175 per dollar, off the day's high of 47.79, its strongest since 11 November 2008 and higher than Monday's close of 48.05/06. A stronger rupee affects IT firms negatively as they earn most of their revenues from exports.
Auto stocks were mixed amid hopes recent price cuts and lower interest rates would boost demand for vehicles which is mainly driven by finance. Hero Honda Motors and Tata Motors rose by between 2.2% to 4.33%.
But India's largest car maker by sales Maruti Suzuki India fell 0.11%. India's largest tractor maker by sales Mahindra & Mahindra slipped 0.99% as its advance tax payment fell 93.3% to Rs 4 crore in Q3 December 2008 over Q3 December 2007.
Bosch declined 0.79% after the company announced a temporary partial shut down of its Naganathapura, Karnataka plant.
SKF India soared 6.71% after a block deal of 12.6 lakh shares, or 2.38% of the equity, was struck on the NSE at Rs 132.75 a share.
India's largest engineering and construction firm by sales Larsen and Toubro fell 1.23% to Rs 810.30, coming off the day's high of Rs 843.70 on worries a slowing economy will crimp orders. L&T's advance tax payment rose 73% to Rs 312 crore in Q3 December 2008 over Q3 December 2007.
Cement stocks rose on hopes government's efforts to give a boost to the realty sector will boost cement demand. ACC, Birla Corporation of India, Ambuja Cements, Grasim Industries rose by between 3.49% to 7.04%.
State-run oil marketing firms fell after Home Minister P Chidambaram said government could further cut retail prices of petrol and diesel if crude oil prices continue to fall. Indian Oil Corporation and HPCL lost by between 1.59% to 1.61%. While, BPCL rose 0.38%.
Airline stocks rose after domestic oil marketing companies cut jet fuel prices. Jet Airways, Kingfisher Airlines and SpiceJet rose by between 3.29% to 5.75%. Jet fuel constitute more than 50% of operating cost for the airliners.
Domestic oil marketing companies have reduced the price of jet fuel by 11% this fortnight to Rs 32,691.28 a kilolitre in New Delhi, the seventh consecutive cut since August 2008 when prices touched a record Rs 71,028.26 per kilolitre.
Compact Disc India soared 9.28% on its plan to diversify into gaming and publishing business.
GMR Infrastructure soared 3.52% on reports the company is close to buying an Indonesian coal mine firm for $80 million.
SRF rose 8.51% on its decision to acquire the engineering plastic business and industrial yarn business of promoter SRF Polymers for Rs 151.60 crore..
Deccan Chronicle Holdings soared 7.57% to Rs 55.40 extending gains for the sixth trading session in a row, after its board approved buy back of shares at a maximum price of Rs 100, a 80.5% premium over the ruling market price.
Suzlon Energy rose 6.53% after it agreed with Portugal's Martifer to a revised payment schedule to increase its stake in Germany's REpower.
Thomas Cook India was locked at 20% upper limit at Rs 54.80 on signing a pact with London based Indian Ocean Cruises for promoting its cruise service across Mauritius and India.
HT Media slipped 4.31% after 17.10 lakh shares, or 0.73% equity, changed hands in three different block deals on BSE and NSE at different prices.
US stocks fell on Monday, 15 December 2008, as New York state manufacturing data pointed to tumbling demand and more signs of economic weakness. The Dow Jones industrial average shed 65.15 points, or 0.75%, to end at 8,564.53. The Standard & Poor's 500 Index fell 11.16 points, or 1.27%, to 868.57. The Nasdaq Composite Index dropped 32.38 points, or 2% to 1,508.34.
Reliance Natural Resources clocked the highest volume of 1.91 crore shares on BSE. Suzlon Energy (1.79 crore shares), Unitech (1.52 crore shares), Housing Development & Infrastructure (1.39 crore shares) and IFCI (1.13 crore shares) were the other volume toppers on BSE in that order.
Reliance Industries clocked the highest turnover of Rs 401.38 crore on BSE. Housing Development & Infrastructure (Rs 191.61 crore), State Bank of India (Rs 163.77 crore), Educomp Solutions (Rs 150.74 crore) and Reliance Infrastructure (Rs 131.15 crore) were the other turnover toppers in that order.
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