Wednesday, December 03, 2014

Today as expected the Mid-cap Index was on Fire, as compared to the Nifty. On 1 December, 2014, the Business Standard wrote: 
With the investment limit for foreign institutional investors (FIIs) in many large-cap stocks getting exhausted, these are turning their focus to names in the mid-cap and, selectively, the small-cap space. In the past month, five companies — CEAT, Just Dial, Edelweiss Financial, Bajaj Corp and Pennar Industries — got Reserve Bank of India (RBI) approval to raise their FII-investment limits. Power Grid Corporation has been added to the FII-ban list, restricting foreign participation.
While, the Nifty is expected to meander between 8500 and 8600, main action would be concentrated in the mid and small cap space. Today Nifty closed at 8537.45, marginally up by 12.95 points. It touched an intra-day high of 8546.95 and low of  8508.35. 
Yesterdays' recommendation Pipavav Defence and Offshore Eng Ltd at around Rs.35-35.50, today moved up and touched Rs.36.80 in the BSE and Rs.36.90, in the NSE, almost near the Upper Circuits at Rs.37 (BSE). The scrip closed at Rs.36.25 (Up 2.84%) in the BSE and  Rs.36.35 (up 3.27%) in the NSE. I again reiterate, Pipavav Defence and Offshore Engineering Ltd is India's biggest private sector naval shipbuilder. Hence, you should be holding the shares of the company in your portfolio---this is a must, especially at this price.Meanwhile,  Capital Market Wrote today: 
A large number of defence equipment have been / are being manufactured in India using Transfer of Technology (ToT). This information was given by Defence Minister Manohar Parrikar in a written reply to Ambika Soni and Dr. T Subbarami Reddy in Rajya Sabha on Tuesday, 2 December 2014.
ARSS Infrastructure Projects Ltd hit the upper circuits at Rs.40.75. After yesterday's, positive comments from the RBI governor, many construction and banking stocks moved up during the day and closed in the green--Punj Lloyd Ltd (Rs.37.55, up 1.90%), HCC (Rs.32.55, up 7.07%), Allahabad Bank Ltd (Rs.130.15, up 2.20%==>after yesterday's spectacular rally), Indian Bank Ltd (Rs.208, up 6.23%), et. Also, Shares of companies whose fortunes are linked to orders from Indian Railways edged higher on renewed buying. ARSS Infrastructure Projects Ltd is engaged in construction activities in India. It undertakes construction of railway infrastructure, roads, highways, bridges and irrigation projects. It started as a construction company in the field of railway infrastructure development, mainly in the State of Orissa and subsequently expanded its business activities in the zonal jurisdictions of East Coast Railway. It  has developed expertise in railway construction projects, which includes earthworks, major and minor bridges, supply of ballast, sleepers, laying of sleepers and rails, linking of tracks etc. Over the years it has diversified its field of activities into other construction segments such as: development and construction of roads, highways, bridges, irrigation projects, EPC activities for railways.
 Meanwhile Capital Market wrote today: 
Commenting on the India Services PMI survey, Pranjul Bhandari, Chief India Economist at HSBC said: "Service sector activity grew in November, as new business rose for the seventh month running. Despite the uptick in order flows, business sentiment deteriorated, reminding us that continued policy action that addresses investor concerns is needed to sustain growth momentum. Meanwhile, prices dipped on falling commodity prices and increased competition". The Ministry of Finance after trading hours yesterday, 2 December 2014, said that it is encouraging that the Reserve Bank of India (RBI) has taken note of the structural change in the outlook for inflation. Responding to the Monetary Policy Statement issued by the RBI, the finance ministry said that the government looks forward to the RBI supporting the revival of growth and employment. In the weeks ahead, the government and RBI will work towards a monetary policy framework that will help institutionalize the gains achieved on the inflation front, so as to reduce inflationary expectations and further support the revival of investment and growth, the finance ministry said in a statement.  
HINDALCO Industries Ltd today touched the 2nd target of Rs.172, as the scrip hit Rs.173.20, intra-day. The stock if  you remember was recommended last week around Rs.157. 
Allied  Digital Services Ltd today moved to Rs.20.45, before closing at Rs.20.40, up 2%. According to my close sources, the company is expected to post an EPS of Rs.3, in FY15 and Rs.5 in FY16. The book value of the shares of the company is Rs.149.40, while the market cap at the CMP of Rs.20.40, is ONLY, Rs.94.22 Cr against H1FY15 sales of Rs.133.55 Cr. For the full year FY15, it is expected to clock a revenue of around Rs.250 Cr, which is around, 3-times the current market cap of the company. This is a turnaround story and hence accumulate it on all declines. 
Today, my strongly recommended Jaiprakash Power Ventures Ltd moved to Rs.13.50, throwing MUD on the FACES of those who were advising a sell on the counter, without doing adequate research. The scrip which closed today at Rs.13.31, will in all probability touch Rs.18, within this month. The Economic Times, wrote today: 
Barely weeks after buying out two hydro power projects of JP Power for Rs 9700 crores, Sajjan Jindal is closing in to strike yet another large deal with Manoj Gaur's power company and this time its for its coal-based power assets. Sources with direct knowledge share that JSW EnergyBSE -1.29 % is close to acquiring Bina and Nigrie thermal power units of JP Power. The deal is likely to value the assets around Rs 12,000 crores. 
Moreover, when the stocks like SKM Egg Products Ltd (CMP: Rs.105.25; Book Value: Rs.17.11) or MIC Electronics Ltd (Face Value: Rs.2 and with losses in the last two quarters. The net loss in the September, 2014 quarter was Rs.4.85 Cr), can hit upper circuits, why do you bother so much to enter this A-group counter? Do you think the management of Jaipee Group is so stupid that it will allow it to go bust? Unfortunately, in this market, the stocks which are manipulated to the hilt are moving up and up, while others which are genuinely having stories are not going anywhere--probably this is related to negative media publicity. It seems the Indian Financial Media, need some "Tonic" from the J P Group to give it a good coverage. You cannot believe the Indian Media companies, many of whom sell the advertisements, as NEWS.
Reliance Capital Ltd recommended around Rs.500, today touched Rs.545.40, before closing at Rs.540.55. Today, the Shares of insurance companies edge higher on the hopes of passage of Insurance Laws (Amendment) Bill in the ongoing winter session of Parliament, which seeks to up FDI in the sector from 26% to 49%.
The Parliament last week allowed for an extension to a select committee to table its report on the Insurance Laws (Amendment) Bill, which seeks to up FDI in the sector from 26% to 49%. Meanwhile, yesterday, 2 December 2014, the bill got a further shot in the arm after the lead opposition party Congress, which had first initiated the proposal when it was in power, said it would support the legislation even as other parties such as Trinamool Congress (TMC) opposed it. The ruling Bharatiya Janata Party (BJP) does not have a majority in the upper Raj Sabhya house and will need support from opposition to pass the bill through.
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