Mastek Ltd, which was recommended at Rs.116-117, last week to some Paid and Free Members, today touched Rs.122.90. I have been asking all to be long on the IT counters, since the last few weeks.
Tata Power Ltd seems to have given a break out and is ready to move up in the coming days on the back of POSITIVE news in the power sector. There were earlier media reports that, Tata Power Ltd is scheduled to charge 25% higher tariff to Mumbai residential consumers; MERC also approved a multi-year tariff plan till 2016.Positive in short to medium term for Tata Power. Thus the residential consumers (~3 lakh) of Tata Power Company in the city face a 25% tariff increase in the current financial year. The hike will be applicable from July 1. Maharashtra Electricity Regulatory Commission (MERC) has approved an average increase in tariff to Rs.5.26 from the existing Rs 4.19 for FY14 for residential consumers, which will be effective from July 1. The Commission has approved the multi-year tariff plan till 2016 of Tata Power and allowed an increase of 25% for FY14, 15% for FY15 and 11% for FY16 for residential consumers. The analysts believe that this is positive for Tata Power in short to medium term.
Fundamentally speaking, the market is expected to continue its upward journey, albeit with occasional bits of profit booking as the Government of India (GOI) plans to push in more reforms. The GOI is lining up a spate of decisions as part of a campaign of reforms aimed at lifting the economy out of its worst slump in a decade. India's Finance Minister, Mr. P Chidambaram has said that the govt will revise Foreign Direct Investment cap in various sectors by the third week of July, 2013. Meanwhile, in Japan, the quarterly Tankan index for large manufacturers rose to plus four in June from minus eight in March, the Bank of Japan said in Tokyo, indicating confidence in PM Shinzo Abe’s reflationary policies even after stock market volatility. Also, the PM of India, Dr.M M Singh, expects growth to be 6.5% in FY14, a tad faster than the decade-low growth of 5% recorded last year.