Market  Pulse

Key benchmark indices hovered near flat line in early trade. The Sensex is now trading at 34,418.04 up 15.03 points or 0.04% and Nifty at 10,621.70 up 10.50 points or 0.10%.

Among secondary indices, the S&P BSE Mid-Cap index dropped 0.05%, underperforming the Sensex. The S&P BSE Small-Cap index advanced 0.09%, outperforming the Sensex.

Overseas, Asian stocks edged lower after Wall Street slipped overnight on China bond report. US stocks fell yesterday, 10 January 2018 as investors fretted over the possibility of China halting its Treasury bond purchases and the US pulling out of North American Free Trade Agreement (NAFTA).

Back home, the breadth, indicating the overall health of the market, was positive. On the BSE, 930 shares rose and 602 shares declined. A total of 58 shares were unchanged. IndusInd Bank was up 0.19% at Rs 1,738 ahead of Q3 December 2017 earnings today, 11 January 2018.

TCS was down 0.06% at Rs 2,805.55. The company is scheduled to announce Q3 December 2017 results today, 11 January 2018.

Housing finance major HDFC was up 0.27% at Rs 1,730 after the company announced that a meeting of the committee of directors of the company will be held on Saturday, 13 January 2018, to consider the details of preferential issue and qualified institutions placement, subject to the approval of the shareholders of the company. The announcement was made after market hours yesterday, 10 January 2018.

Maruti Suzuki India was up 0.16% at Rs 9,398.85 after the company announced a price increase ranging from Rs 1,700 to Rs 17,000 (ex-showroom- Delhi) across models with effect from 10 January 2018, owing to increase in commodity and other administrative & distribution costs. The announcement was made after market hours yesterday, 10 January 2018.

On the macro front, according to the World Bank's Global Economic Prospects report released yesterday, 10 January 2018, India is likely to reclaim its position from China as the fastest growing major economy in 2018, with growth expected to accelerate to 7.3% in the year. The World Bank also revised India's growth estimate for 2017 to 6.7% from 7% projected in October, blaming short-term disruptions caused by the newly introduced goods and services tax (GST) and a softer-than-envisioned recovery in private investment. The report projected China's economic growth to slow to 6.4% in 2018 from 6.8% in 2017.

Meanwhile, the government is scheduled to announce industrial production data for November 2017 tomorrow, 12 January 2018. India's industrial production increased by 2.2% year-on-year in October, easing from an upwardly revised 4.1% gain in September.

The government will also announce tomorrow, 12 January 2018, inflation data based on consumer price index (CPI) for December 2017. Consumer prices increased 4.88% year-on-year in November, higher than 3.58% in October.

Today's calls:

#Buy NDTV Ltd at around Rs.49-50, for targets of around Rs.71, SL: Rs.42. You must have seen that the media sector is getting re-rated with TV Vision Ltd, Sri Adhikar Brothers Ltd, etc, hitting upper circuits. Moreover, the company is thinking to trim its workforce by around 25%. It has already started exiting from its non-core business verticals. In September, its shareholders approved the sale of its automobile e-commerce firm Fifth Gear Ventures, which owned and operated popular portal carandbike.com, to Autobyte Pvt Ltd. Three months before that, they approved the sale of its Indian wear e-commerce firm NDTV Ethnic Retail Ltd to Nameh Hotels & Resorts.

#Buy DHFL Ltd at around Rs.622, T: 635-643, SL: Rs.615. This is a pure chart based call valid for a couple of days.

#Today, we could get some news on the NCLT front, in case of MBL Infrastructure Ltd (Rs.29). Some of the stocks in this space, for example, Uttam Galva Steel Ltd (Rs.23) and Jai Balaji Industries Ltd (Rs.22.60) are all doing fine in the mornig, with latter hitting the Buyer Freeze in the opening trade. In this light, we can expect the share of MBL Infrastructure Ltd to start hitting upper circuits soon, as the company has a humongous order book of around Rs.7000 crore as compared to its debt of around Rs.1700. The promoters have already expressed their desire to bring in  Rs.120 crore, as per the plan of the lenders. 

#As  expected the stock of Housing Development & Infrastructure Ltd (HDIL) has started to do well, hitting Rs.65.65, intraday. The stock is looking excellent on three prime parameters: 

• Chart, except that its short term oscillators are slightly overbought.
• Fundamentals, including its massive land holding of more than 20 crore sq.ft
• FPI or FII holdings...

Besides, there were earlier media reports that MMRDA has started the process of shifting of eligible slum dwellers from Mumbai International Airport slums (MIAL) to Kurla Premiere compound and have issued Allotment letters to the eligible slum dwellers for the 1st phase.  an arbitration proceeding. 

It is to be  noted that MIAL terminated its contract with HDIL in February 2013 alleging breach of contract. HDIL moved court seeking relief but its appeals were rejected by the Bombay High Court and Supreme Court. An arbitration tribunal was constituted that “urged both parties to seriously attempt a settlement”. The Maharashtra government is now exploring ways to change development control rules to allow speedier resettlement of 85,000 slum-dwellers on an area adjacent to the airport. Slum-dwellers will be provided free houses and the developer will be allowed to commercially develop some portion of the land. 
The shifting of the eligible slum dwellers is a part of the Phase I of the MIAL slum rehabilitation project was undertaken by HDIL. Also, HDIL and GVK Infra have settled the dispute over the cancellation of slum rehabilitation agreement at Mumbai airport. The settlement is a win-win for both the companies. 
Moreover, there were earlier news that the State government of Maharashtra is likely to give transferable development rights (TDR) to redevelopment projects of housing societies located on internal roads and those in need of right of way. TDR is issued to a landowner as compensation for space ceded to the government for amenities. Senior government officials said the decision by the Urban Development Department (UDD) would benefit over 500 housing societies. The decision was taken following a request from the local city corporation and the developer lobby. The UDD will soon announce the change in rules. Most housing societies that are up for redevelopment are located in Chembur, Ghatkopar, Santacruz, Khar and Juhu, where TDR is not given to redevelopment projects abutting internal roads and right of ways.
Actually, TDR is now available only in the Mumbai suburb or in other words one cannot use that TDR of Santacruz in Mumbai Central or in Tardeo. That means beyond Sion and beyond Bandra only, one can use that TDR.
According to a market analyst, Mumbai Municipal Corporation is contemplating this is just an inside expectation that they will allow the TDR of even Borivali can be used at Colaba. Obviously, it is based on the ready reckoner rate. Suppose just to give an example, if the ready reckoner rate of the land for Borivali is at Rs.5,000 per sq ft and if in Colaba it is Rs.25,000 per sq ft, then your Rs 5,000 sq ft of TDR will entitle you to construct 1,000 sq ft in Colaba. So, that is going to be a very big positive. And in fact, you are going to see a lot of this TDR being bought by the Mumbai city developer. That means from Colaba to Dadar or Matunga or Sion. That is going to be a big booster. And if you go by the two themes, that is HDIL an DB Realty, they are the largest TDR holder.
The proposed amendment to increase the FSI for redevelopment of buildings by 0.5 will help a lot of non-cessed buildings that get lesser FSI compared to the cessed ones. However, experts and architects, while predicting a boom in redevelopment, also caution that it may further congest the already congested South Mumbai. 
The notification, that came out on Monday from the Urban Development Department of the state, has proposed that the higher FSI of 0.5 be allowed to buildings with road width above 9 metres. The existing FSI in the area is 1.33 for all buildings, plus TDR up to 0.67 can be used depending on the road facing the building. The additional FSI of 0.5 would bring the minimum FSI in area to 2 and maximum to 2.5 for non-cessed buildings and other redevelopment projects, excluding cessed buildings. The FSI will be available at premium of 60 per cent of the Ready Reckoner rate. 
Implementation of Real Estate (Regulation & Development) Act (RERA) in letter and spirit, and the falling prices – a first since 2010 – have led to a 19 per cent increase in residential sales in Mumbai Metropolitan Region (MMR) between July and December 2017 compared to the same period in 2016 which witnessed demonetisation, revealed Knight Frank India’s half-yearly report, India Real Estate, released on Wednesday.

I am therefore looking at a target of Rs.350-plus in the share price of HDIL, in the next 12-18 months time frame, as the company monetizes its land assets and both its SRA programme and affodable housing venture pick up steam.

#The share of Videocon Industries Ltd (Rs.24) after long rise is going for some corrections. However, what I feel is that it should go to its natural price of around Rs.210-235, from where it started to fall. The company has huge OIL ASSETS and current buoyancy in the CRUDE OIL price in the international market, is likely to increase their valuations. Or its share price is also a proxy to the crude oil story. Hence, you should accumulate the scrip and hold for the long term. 

 ~~with inputs from Capital Market - Live News

Pre-Session: Weak start on the cards

11-Jan-18: Market may edge lower in early trade tracking sluggishness in Asian stocks and overnight declines on Wall Street. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 14 points at the opening bell.

Overseas, Asian stocks edged lower after Wall Street slipped overnight on China bond report. US stocks fell yesterday, 10 January 2018 as investors fretted over the possibility of China halting its Treasury bond purchases and the US pulling out of North American Free Trade Agreement (NAFTA).

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 572.26 crore yesterday, 10 January 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 600.24 crore yesterday, 10 January 2018, as per provisional data.

Among corporate news, IndusInd Bank and TCS are scheduled to announce their Q3 December 2017 results today, 11 January 2018.

On the macro front, according to the World Bank's Global Economic Prospects report released yesterday, 10 January 2018, India is likely to reclaim its position from China as the fastest growing major economy in 2018, with growth expected to accelerate to 7.3% in the year. The World Bank also revised India's growth estimate for 2017 to 6.7% from 7% projected in October, blaming short-term disruptions caused by the newly introduced goods and services tax (GST) and a softer-than-envisioned recovery in private investment. The report projected China's economic growth to slow to 6.4% in 2018 from 6.8% in 2017.

Meanwhile, the government is scheduled to announce industrial production data for November 2017 tomorrow, 12 January 2018. India's industrial production increased by 2.2% year-on-year in October, easing from an upwardly revised 4.1% gain in September.

The government will also announce tomorrow, 12 January 2018, inflation data based on consumer price index (CPI) for December 2017. Consumer prices increased 4.88% year-on-year in November, higher than 3.58% in October.

The stock market closed the lackluster trading session on a flat note yesterday, 10 January 2018. The Sensex had fallen 10.12 points or 0.03% to settle at 34,433.07, its lowest closing level since 8 January 2018.

~~Powered by Capital Market - Live News...

Winning Strokes

The stock market closed the lackluster trading session on a flat note. The barometer index, the S&P BSE Sensex, fell 10.12 points or 0.03% to settle at 34,433.07. The Nifty 50 index fell 4.80 points or 0.05% to settle at 10,632.20.

The Sensex had hit a record high in early trade. Later, the movement of key indices was confined to a narrow range around the flat line till mid-morning trade before extending losses amid weakness in Asian stocks. Key indices pared losses and hovered in narrow range in negative terrain in afternoon trade. Indices trimmed intraday losses in mid-afternoon trade and closed the session near the flat line.

Overseas, European stocks edged lower as investors watch out for corporate earnings and fresh data. Asian stocks were mixed as investors booked profits in shares while oil prices hit three-year highs due to production cuts and a fall in inventories. US equities rose to record highs yesterday, 9 January 2018 as investors remained optimistic about the market heading into the corporate earnings season.

Back home, the Sensex fell 10.12 points or 0.03% to settle at 34,433.07, its lowest closing level since 8 January 2018. The index rose 122.44 points, or 0.36% at the day's high of 34,565.63, a record high. The index fell 131.56 points, or 0.38% at the day's low of 34,311.63.

The Nifty 50 index fell 4.80 points or 0.05% to settle at 10,632.20, its lowest closing level since 8 January 2018. The index rose 18.50 points, or 0.17% at the day's high of 10,655.50, a record high. The index fell 44.30 points, or 0.42% at the day's low of 10,592.70.

Among secondary indices, the S&P BSE Mid-Cap index fell 0.31%. The S&P BSE Small-Cap index dropped 0.04%. Both these indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,596 shares declined and 1,331 shares advanced. A total of 127 shares were unchanged.

The total turnover on BSE amounted to Rs 5008.17 crore, lower than turnover of Rs 5458.26 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Auto index (down 0.68%), the S&P BSE Consumer Durables index (down 0.65%), the S&P BSE Finance index (down 0.46%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.4%), the S&P BSE Utilities index (down 0.39%), the S&P BSE Capital Goods index (down 0.37%), the S&P BSE Bankex (down 0.31%), the S&P BSE Basic Materials index (down 0.22%), the S&P BSE Power index (down 0.2%), the S&P BSE Industrials index (down 0.19%), the S&P BSE FMCG index (down 0.14%) and the S&P BSE Healthcare index (down 0.09%), underperformed the Sensex. The S&P BSE Oil & Gas index (down 0.02%), the S&P BSE Metal index (up 0.10%), the S&P BSE Telecom index (up 0.12%), the S&P BSE Energy index (up 0.17%), the S&P BSE Realty index (up 1.16%), the S&P BSE Teck index (up 1.46%) and the S&P BSE IT index (up 1.84%), outperformed the Sensex.

Banks witnessed selling pressure. Among private sector banks, Federal Bank (down 1.87%), RBL Bank (down 1.62%), Axis Bank (down 0.45%), Yes Bank (down 0.25%), Kotak Mahindra Bank (down 0.24%), ICICI Bank (down 0.19%), City Union Bank (down 0.03%) and HDFC Bank (down 0.01%), edged lower. IndusInd Bank rose 0.41%.

Among public sector banks, Bank of India (down 3.03%), Syndicate Bank (down 2.76%), Canara Bank (down 2.6%), IDBI Bank (down 2.14%), Punjab National Bank (down 2.09%), Union Bank of India (down 2.04%), Bank of Maharashtra (down 1.72%), Indian Bank (down 1.57%), Dena Bank (down 1.5%), Bank of Baroda (down 1.34%), Andhra Bank (down 1.21%), Vijaya Bank (down 1.18%), Allahabad Bank (down 1.09%), UCO Bank (down 1.09%), State Bank of India (down 1.07%), Central Bank of India (down 0.27%) and Corporation Bank (down 0.25%), edged lower. Punjab & Sind Bank (up 0.20%) and United Bank of India (up 1.37%), edged higher.

Retail stocks were in demand as investors' sentiment towards the sector improved after media reports sugggested that the Union Cabinet today, 10 January 2018, approved 100% foreign direct investment (FDI) through automatic route in single-brand retail. Future Enterprises (up 5.11%), Provogue (India) (up 4.93%),V-Mart Retail (up 3.44%), Shoppers Stop (up 2.32%), Trent (up 1.47%) and V2 Retail (up 1.27%), edged higher. Future Retail fell 1.61%.

Shares of coal mining major Coal India advanced 1.33% at Rs 308.10.

Pharma major Dr Reddy's Laboratories dropped 1.45% at Rs 2,422.80.

IT stocks advanced. TCS (up 2.93%), Wipro (up 2.50%), HCL Technologies (up 1.89%), Tech Mahindra (up 1.65%), Oracle Financial Services Software (up 1.26%), Hexaware Technologies (up 0.35%), Persistent Systems (up 0.22%) and MindTree (up 0.18%), edged higher. MphasiS fell 0.15%.

Infosys rose 0.46% at Rs 1,046.10. The company announced the successful conclusion of an advance pricing agreement (APA) with the US Internal Revenue Service (IRS). The APA will enhance predictability of the company's tax obligations in respect of its US operations. The company expects to reverse tax provisions of about $225 million made in previous periods which are no longer required. Further, the company expects to payout about $233 million due to the difference between the taxes payable for prior periods as per the APA and the actual taxes paid for such periods. This amount is expected to be paid over the next few quarters, Infosys said in a statement.

The reversal of the tax provisions will have a positive impact on the consolidated basic EPS for the quarter ending 31 December 2017 by about $0.1. The company also expects its overall effective tax rate to be lower by about 100 basis points for future periods covered under the APA. The announcement was made after market hours yesterday, 9 January 2018.

#Today also TV Vision Ltd hit another buyer freeze at Rs.23.75 in the NSE. The stock has been hitting upper circuits from the day (8th January, '18) it was recommended around Rs.21. The next target comes around Rs.47 .

#Today after a long time the stock of Housing Development & Infrastructure Ltd or HDIL (Rs.64.80) closed above key resistance zone. During intraday however, the stock moved to Rs.66.35. The company has got huge land bank of around Rs.20 crore sq. ft in Mumbai Metropolitan Region, whose valuation on a rough estimate basis is more than 15 times its debt. The management is looking to monetize a part of it to cut its debt of around Rs.2500 crore (approx).  The growth in the real estate market in Mumbai has been stagnant, quite sometime especially after demonetization, however the things have started to look much better after RERA began to weed out fly by night builders, limiting the competition. Moreover, the builders who have large land parcels are better placed because getting loans to buy land is extremely difficult now and also does not offer tax benefits. Over and above banks usually charge 0.5-2 points higher interest rate for land loans over the home loan rate. An investment in land can offer multi-fold returns provided one is ready to lock in money for 5-10 years. Many people buy land because there is some development coming up in the area like a highway or an airport and that the price will appreciate. With 2nd airport coming up in Navi Mumbai and Metro line is being extended to beyond Andheri, we can hope that the land price in this 7-island-land-locked city is likely to shoot northwards in the coming days. 

Meanwhile, the Board of Housing Development & Infrastructure Ltd (HDIL) had earlier considered and approved issue of upto 2,00,00,000 (Two Crore) share warrants convertible into equity shares to Mr. Sarang Wadhawan, Promoter of the Company on preferential basis subject to the approval of Shareholders. When preferential issue comes, I feel no shareholder will object, especially when capital infusion is concerned. 

There are some key developments in the real estate sector, according to a business website: 

(i) Second-half of 2017 sees new launches drop below sales for the first time in a decade. 40,832 units launched between July–December 2017, down 41% Y-O-Y | Sales at 1,07,316 units, down only 2% Y-O-Y. 

(ii) Unsold Inventory shrinks by 19% to 5.28 Lakhs Y-O-Y | Unsold inventory was at its peak of 7.2 lakh units in 2014.Unsold inventory in Mumbai shrunk by 25% at 1.16 lakh units 

(iv) Mumbai (Bombay) sees maximum sales and new launches in 2017. However, units sold are 3 times more than new apartments launched. | Mumbai : New units sold at 62,256; Mumbai: New launches at 23,253.

(v) Average property prices fallen by 3% across cities | Pune sees the most decline at 7% year-on-year | Mumbai residential prices too crack by 5% in 2017. 

Final Takeaways: New launches falling below sales is a healthy sign of reducing demand – supply gap | Unit sizes reducing across all 8 cities, to keep prices affordable | Effects of demonetisation tapering off | PMAY yet to make any significant market impact on the buyer | An uptick in buyers investing in properties abroad.

Therefore, worst phase may be over for the realty sector, which was disrupted by the triple ripple of demonetisation, implementation of Real Estate Regulation Act (RERA) and Goods and Services Tax in 2017. However, experts feel the spill-over effect will continue even in 2018 and that revival will be slow. “Recovery will be gradual and it will take three to five years for the sector to be back to normal,” says Anuj Puri, chairman of ANAROCK, a real estate consultancy.
Besides, on the daily chart the stock of HDIL is looking bullish, except that it is in the F&O ban list and its short term oscillators are slightly overbought. I am looking for a target of Rs.72, this week and hence accumulate on all declines. 

#The group company of TV Vision Ltd, Sri Adhikar Brothers Television Network Ltd also hit the UPPER CIRCUITS and closed at Rs.31.10. However, it needs to close above the resistance zone of Rs.31-32, to start the next level of upmove. It was recommended around Rs.28-29.50. 

#The scrip of Suzlon Energy Ltd (Rs.14.60) today touched its 2nd target of Rs.17 (intraday high Rs.17.10). The investors should do well to book complete profits and wait for the dips for re-entry.

#The scrip of Pincon Spirit Ltd after hitting a high of Rs.49.25, below the resistance zone of Rs.51 to close at Rs.45.25. What to do with  this scrip? Join either my associate brokerage house or subscription to my Premium Service, to stay ahead of others.

#Today, the scrip of Aban Offshore Ltd rose to Rs.257.30 intraday, piggybacking on the crude oil price rise and also about the media speculation that the promoters are offering $600 mln for one-time settlement to lenders. The stock if you remember was recommended some months back at around Rs.178--179.

#Tomorrow, I will be recommending a short term momentum counter in this blog, from the small/mid cap space. Hence, the risk taking investors can keep an eye on this blog, the next day.

#Those who have a portfolio size of more than Rs.1.50 lakhs can come to me - we will make money together on a profit sharing basis. Also, from 16th January, '18, the subscription charge of my Premium Service would be increased to Rs.18,000 per month. If you do not have sufficient experience in the stock market  then, I would suggest you to not to dribble here without the help of an expert. You would either not be able to get optimum returns on your investments or you might burn your finger too often. It is not that experts don't make mistakes in the stock market, but their percentage is low as compared to a novice or a newcomer or who does not have much time for research. Believer me, these days with information boom, making money from the markets on consistent basis has become very difficult and tricky. 

~ with inputs from Capital Market - Live News

Pre-Session: Flat to slightly higher opening on cards

10-Jan-18; The stock market may see a flat to slightly higher opening amid mixed global cues. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 6 points at the opening bell.

Overseas, Asian stocks were mixed. US equities rose to record highs yesterday, 9 January 2018 as investors remained optimistic about the market heading into the corporate earnings season.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 692.83 crore yesterday, 9 January 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 522.90 crore yesterday, 9 January 2018, as per provisional data.

Among corporate news, Power Grid Corporation of India (PGCIL) announced that its board approved investment for transmission system for ultra mega solar power park at Tumkur (Pavagada), Karnataka - Phase-II Part-C at an estimated cost of Rs 92.13 crore with commissioning schedule of 20 months from the date of investment approval. The announcement was made after trading hours yesterday, 9 January 2018.

The stock market registered small gains in a range bound session of trade yesterday, 9 January 2018. The Sensex had risen 90.40 points or 0.26% to settle at 34,443.19, its record closing high.

~~Powered by Capital Market - Live News....

Winning Strokes

The key benchmark indices registered small gains in a range bound session of trade. The barometer index, the S&P BSE Sensex, rose 90.40 points or 0.26% to settle at 34,443.19. The Nifty 50 index rose 13.40 points or 0.13% to settle at 10,637. The Sensex and the Nifty, both, hit record high in intraday as well as on closing basis.

Continuous foreign fund inflows and bets by investors amid optimism over Q3 FY 2018 earnings and upcoming budget helped the key indices to hit record highs. Positive global cues also lifted investors' spirit. However, the movement for the key indices was confined to a narrow range around the flat line throughout the session.

Overseas, European stocks edged higher as investors monitored a fresh batch of economic data. Official data released today, 9 January 2018 showed that industrial production in Germany, Europe's biggest economy, picked up strongly in November after two months of declines. The Economy Ministry said that production was up 3.4% compared with the previous month.

Most Asian stocks closed higher as investors in the region digested earnings guidance from tech heavyweight Samsung Electronics and kept an eye on inter-Korea talks. North and South Korea have begun high-level talks, the first between the countries in two years. North Korea will reportedly send athletes and cheerleaders to next month's Winter Olympics in South Korea, after the two countries held their first official talks for more than two years. The talks represent a cautious diplomatic breakthrough after months of rising tensions over Pyongyang's nuclear weapons programme. US President Donald Trump called the talks a big start, adding that it would be a great thing for all of humanity if they resulted in a positive outcome.

In the US, the S&P 500 and Nasdaq composite finished Monday's session at all-time highs as investors remained optimistic on the US economy.

Back home, the Sensex rose 90.40 points or 0.26% to settle at 34,443.19, its record closing high. The index rose 135.24 points, or 0.39% at the day's high of 34,488.03, a record high. The index fell 9.38 points, or 0.03% at the day's low of 34,343.41.

The Nifty 50 index rose 13.40 points or 0.13% to settle at 10,637, its record closing high. The index rose 35.55 points, or 0.33% at the day's high of 10,659.15, a record high. The index fell 20 points, or 0.19% at the day's low of 10,603.60.

Among secondary indices, the S&P BSE Mid-Cap index fell 0.40%. The S&P BSE Small-Cap index advanced 0.08%. Both these indices underperformed the Sensex.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,623 shares fell and 1,369 shares rose. A total of 102 shares were unchanged.

The total turnover on BSE amounted to Rs 5442.86 crore, lower than turnover of Rs 6007.76 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Telecom index (down 1.35%), the S&P BSE Utilities index (down 0.67%), the S&P BSE Power index (down 0.64%), the S&P BSE Healthcare index (down 0.63%), the S&P BSE Auto index (down 0.39%), the S&P BSE Capital Goods index (down 0.36%), the S&P BSE Industrials index (down 0.15%), the S&P BSE Teck index (down 0.13%), the S&P BSE Finance index (down 0.08%), the S&P BSE Basic Materials index (down 0.07%), the S&P BSE Bankex (up 0.04%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.07%) and the S&P BSE Oil & Gas index (up 0.2%), underperformed the Sensex. The S&P BSE Metal index was unchanged. The S&P BSE IT index (up 0.32%), the S&P BSE FMCG index (up 0.45%), the S&P BSE Consumer Durables index (up 0.81%), the S&P BSE Energy index (up 1.08%) and the S&P BSE Realty index (up 2.88%), outperformed the Sensex.

Most banks declined. Among private sector banks, RBL Bank (down 1.14%), City Union Bank (down 0.77%), ICICI Bank (down 0.64%), Federal Bank (down 0.13%), Axis Bank (down 0.04%) and Kotak Mahindra Bank (down 0.01%), edged lower. HDFC Bank (up 0.21%), IndusInd Bank (up 0.22%) and Yes Bank (up 2.31%), edged higher.

Among public sector banks, Bank of Maharashtra (down 1.69%), UCO Bank (down 1.38%), United Bank of India (down 1.09%), Andhra Bank (down 1.02%), Punjab & Sind Bank (down 1%), Corporation Bank (down 0.85%), Union Bank of India (down 0.62%), Punjab National Bank (down 0.46%), Central Bank of India (down 0.4%), Indian Bank (down 0.39%), Dena Bank (down 0.37%), IDBI Bank (down 0.32%), Canara Bank (down 0.3%) and Bank of India (down 0.15%), edged lower. Vijaya Bank (up 0.15%), Allahabad Bank (up 0.41%), Syndicate Bank (up 0.63%) and Bank of Baroda (up 1.64%), edged higher.

State Bank of India (SBI) fell 0.46% at Rs 304.25. The bank said that its executive committee of the central board is scheduled to meet on 17 January 2018, to consider approval for issuance of long term bonds of Rs 5000 crore for financing of infrastructure and affordable housing in domestic and overseas market. The announcement was made during market hours today, 9 January 2018.

Metal and mining stocks dropped. Jindal Steel & Power (down 3.14%), Hindustan Copper (down 2.72%), Hindalco Industries (down 1.52%), National Aluminium Company (down 1.51%), JSW Steel (down 0.98%), Steel Authority of India (down 0.86%), Vedanta (down 0.65%) and Hindustan Zinc (down 0.28%), edged lower. Tata Steel (up 0.44%) and Bhushan Steel (up 4.49%), edged higher.

NMDC fell 4.48% at Rs 154.60. The promoter Government of India (GoI) after market hours yesterday, 8 January 2018, announced a stake sale in the company through an offer for sale (OFS) at a floor price of Rs 153.50 per share. GoI is selling up to 4.74 crore (or 1.5%) equity shares today, 9 January 2018 for non-retail investors only and retail investors and for non-retail investors who choose to carry forward their un-allotted bids tomorrow, 10 January 2018, with an option to additionally sell up to 4.74 crore (or 1.5%) equity shares of the company.

Separately, NMDC reported iron ore production of 24.23 million tonnes (MT) in December 2017. The company reported iron ore sales to 25.64 MT in December 2017. The announcement was made during market hours today, 9 January 2018.

Coal India advanced 5.63% at Rs 304.05 after the company's board at its meeting held on 8 January 2018, approved revision of non-coking coal prices with effect from 9 January 2018. This will be applicable to all subsidiaries of Coal India including NEC for regulated and non-regulated sectors. Due to this revision, Coal India will earn incremental revenue of about Rs 1956 crore for the balance period of FY 2018. The projected annual incremental revenue would be Rs 6241 crore. The announcement was made after market hours yesterday, 8 January 2018.

Index heavyweight and cigarette major ITC advanced 1.94% at Rs 270.50. The company said that the Supreme Court by an order dated 8 January 2018 has stayed operation of the judgement and order dated 15 December 2017 passed by the Karnataka High Court. The announcement was made during market hours today, 9 January 2018.

It may be recalled that the Karnataka High Court by its judgement and order dated 15 December 2017, held a notification issued by the Ministry of Health and Family Welfare, Government of India, as unconstitutional. The said notification, inter alia, prescribed textual and pictorial warnings to occupy 85% of the front and back panels of tobacco product packages. The High Court also held that the earlier rules prescribing 40% warning on the front panel of tobacco product packages shall revive. Certain individuals and NGOs have filed special leave petitions against this judgment, along with a prayer for stay of the judgment.

#Today also Pincon Spirit Ltd hit the buyer freeze at Rs.47.60, up 9.93%. If you remember the scrip was recommended around Rs.37-38 a couple of days. This is the 3rd consequtive rally after it was recommended both to the Premium Members and also in this free blog.

#MBL Infrastructure Ltd today closed at Rs.28.60 in the NSE over uncertainty surrounding the crucial meeting on 11 January, 2018.  What to do with the scrip? It is pertinent to mention here is that making money on consistent basis from the share market is not a child's play. It  is because stock movements many times are irrational and have no connection with the fundamentals, for example a Re.1 face value share named GVK Power and Infrastructure Ltd with huge debts is trading at Rs.22.50 or Rs.250 on Rs.10 face value. What is so special about this power and infrastructure company that it has to trade at such astronomical levels only because a fund manager has purchased the same??!!

#Today's call Surana Solar Ltd hit the buyer freeze at Rs.19.85. However, this is a high risk call and non-risk taking investors should avoid.

#Suzlon Energy Ltd today touched Rs.16.50, before closing at Rs.16.40. The investors should do well to book some profits in the counter. If you can recollect, the stock was recommended around Rs.13.60.

#Today, TV Vision Ltd hit another buyer freeze at Rs.22.85 in the NSE.. The scrip was recommended around Rs.21 on 8th January, '18.

#My recommended Jai Prakash Associates Ltd recommended around various prices starting from around Rs.7-8 today made a high of Rs.24.20. The investor can hold with a SL of Rs.21.

#Today, Sri Adhikari Brothers Television Network Ltd was recommended to the Premium Members at around Rs.28-29.65 and also have taken position in some accounts which I manage. However, though the stock hit the upper circuit, it has a stiff resistance at around Rs.31-32, which it needs to overcome for further upmove.

#My Recommended Unitech Ltd is consolidating around Rs.10, after it made an high of Rs.12.25 some days back. The investors are suggested to book complete profits and buy only if the scrip gives a closing above Rs.12.30. However, long term investors can hold the scrip with a SL at Rs.8.7.

#From 16th January, '18, the charges for my Premium Service (for sharing information) will increase to Rs.18,000 per year. And from that date, I will give only calls (Information) like I used to give earlier. The support during the market hours will be stopped due to some unscrupulous elements, who have started to misuse this service and who ping me 100 times in a day for trivial reasons. Moreover, they bring a bouquet of scrips recommended by various agencies including brokerage houses, during market hours, take my inputs and then either sell it to their clients or pass it to their friends. 
It it to be understood that this Premium Service is only for one person and not for 100s of your friends who wants enjoy the fruits without paying anything. Now if you want support during the market hours, then the charges would be Rs.2 (two) lakh per year -- this  is just a deterrent for these unholy elements, who want mass support paying only for one person or only a tiny fraction. 

Also, those who wants their accounts to be managed by me have to compulsorily open account with BMA Wealth Creators Ltd so that I know who is purchasing what or else they take the name of the scrips from me during the market hours and then say, they have not invested in the same or give some excuses, so that they do not have PAY me the sharing amount. This is a very rampant disease prevalent from among the Army Colonels to NRIs to IT Professionals to Local Businessmen -- dishonest lot. You will not believe how high profile men and women are dishonest and I have a very bad experience of people taking my service and not paying me. 

However, there are people like Prakash Lotankar (Mumbai) or Arunabha Mukherjee (Kolkata) or Rupa Bashrur (Bangalore) who are very decent, cultured and different from the rest. These kinds of people have always appreciated and paid for my efforts.

~~with inputs from Capital Market - Live News

Market Pulse

Key indices edged higher in early trade on positive global cues. The Sensex, and the Nifty, hit record highs. The Sensex is now trading at 34,415.05 up 62.26 points or 0.18%, while the Nifty is seen at 10,628.90 up 5.30  or 0.05%.

Among secondary indices, the S&P Mid-Cap index rose 0.32%. The S&P BSE Small-Cap index advanced 0.3%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was strong. On the BSE, 1,042 shares rose and 370 shares declined. A total of 53 shares were unchanged.

Tata Motors was up 0.43% at Rs 435.55. The company's subsidiary Jaguar Land Rover (JLR), reported a 0.6% growth in retail sales to 55,697 vehicles in December 2017 over December 2016. Jaguar retail sales fell 7.8% to 15,079 units as solid sales of the long wheel base Jaguar XFL in China and the introduction of the E-PACE were more than offset by softer sales of XE and XJ. Land Rover retail sales rose 4.1% to 40,618 units led by the introduction of the Range Rover Velar and the sales ramp up of the all new Discovery. The announcement was made after market hours yesterday, 8 January 2018.

IndusInd Bank dropped 0.08%. IndusInd Bank and Dynamics Inc yesterday, 8 January 2018, at the 2018 Consumer Electronics Show (CES), announced plans to introduce the first battery-powered, interactive payment cards to the Indian market in 2018. The new IndusInd Bank card from Dynamics has multiple buttons that let the consumers use a single card to pay in multiple ways. With a touch of a button consumers can select credit, points or monthly instalments as payment option. A different color light will activate based on the selected payment option. The solution requires no changes to the payment infrastructure or merchant systems. A consumer can pay using points or instalment anywhere MasterCard is accepted. The announcement was made after market hours yesterday, 8 January 2018.

Coal India advanced 3.89% at Rs 299.05 after the company's board at its meeting held on 8 January 2018, approved revision of non-coking coal prices with effect from 9 January 2018. This will be applicable to all subsidiaries of Coal India including NEC for regulated and non-regulated sectors. Due to this revision, Coal India will earn incremental revenue of about Rs 1956 crore for the balance period of FY 2018. The projected annual incremental revenue would be Rs 6241 crore. The announcement was made after market hours yesterday, 8 January 2018.

Bharti Airtel rose 0.37% at Rs 518. The company has issued a clarification to the stock exchanges with regard to media news titled Airtel Payments Bank removes 1,000 retailers from network. Bharti Airtel said that Airtel Payments Bank in the ordinary course of its business appoints various retailers, distributors and where necessary terminates such retailers and distributors for various reasons. Accordingly, the Payments Bank has in the ordinary course, from time to time, terminated certain retailers for various reasons including delinquency, performance and other contractual reasons, Airtel said. The clarification was issued after market hours yesterday, 8 January 2018.

Overseas, Asian stocks edged higher as investors in the region digested earnings guidance from tech heavyweight Samsung Electronics and kept an eye on ongoing inter-Korea talks. North and South Korea have begun high-level talks, the first between the countries in two years. The meeting, at the Peace House in the truce village of Panmunjom, will focus on North Korea's possible participation in the 2018 Winter Olympic Games, taking place in South Korea in February. US President Donald Trump called the talks a big start, adding that it would be a great thing for all of humanity if they resulted in a positive outcome.

In the US, the S&P 500 and Nasdaq composite finished Monday's session at all-time highs as investors remained optimistic on the US economy.

Today's Call:

#Buy LIC Housing Finance Ltd at around Rs.585, for short term target of Rs.651-660. But this is purely a chart based call and hence keep a SL at Rs.577 (Strict).

~with inputs from Capital Market - Live News....

Market Pulse

Key benchmark indices edged higher in early trade on positive trading in Asian stocks and strong finish on Wall Street overnight. At 9.43 IST, the BSE was trading at 34,323.56 up 169.71 points or 0.50% while NSE is was seen at 10,607.90 up 49.05 or 0.46%. The Sensex, and the Nifty, hit fresh record highs in early trade.

The S&P BSE Mid-Cap index rose 0.69%. The S&P BSE Small-Cap index advanced 0.81%. Both these indices outperformed the Sensex.

Overseas, Asian stocks edged higher following firm US lead as investors awaited upcoming earnings releases. US stocks rose to record levels on Friday, 5 January 2018 even as Wall Street shook off jobs data that missed expectations. The US economy added 148,000 jobs in December, according to the Labor Department, as against expectations of 190,000 jobs.

Closer home, the breadth, indicating the overall health of the market, was strong. On the BSE, 1,435 shares rose and 319 shares declined. A total of 44 shares were unchanged.

Index heavyweight and housing finance major HDFC advanced 0.93% at Rs 1,742.

Engineering and construction equipment major L&T rose 1.32% at Rs 1,331.90 after the company said its construction division has bagged three EPC orders worth Rs 2265 crore from Andhra Pradesh Capital Region Development Authority (APCRDA). The announcement was made during market hours today, 8 January 2018.

NBCC (India) was up 0.64% at Rs 250.60 after the company said it has received a contract from Ecotourism Development Corporation of Uttarakhand, Dehradun for Construction of Kotdwar-Ramnagar Kandi Road under Green Infrastructure/Green Road Project amounting to about Rs 2000 crore as project management consultant. The announcement was made on Saturday, 6 January 2018.

The 14-day long winter session of the Parliament concluded on Friday, 5 January 2018. The Speaker said that 16 bills were introduced in the Lok Sabha by the government in the session, of which 12 bills including the triple talaq bill was passed. Important bills passed during the session also included the Requisitioning and Acquisition of Immovable Property Bill and the Goods and Services Tax (Compensation to States) Amendment Bill.

Today's Call:

#Buy TV Vision Ltd at around Rs.21 for targets of Rs.51-75, in the short term. This is from the  reputed Sri Adhikari Brothers Group. At present, TV vision Ltd comprises a bouquet of five channel broadcasting bouquet, namely Mastiii, Dabangg, Maiboli, Dhamaal Gujarat & Dillagi. It plans to add couple of more regional channels along with a mainstream Hindi GEC, in the near future.

#The  share of MBL Infrastructure Ltd (Rs.27.90) is consolidating at the current  levels of Rs.28-29, before the final showdown on or before 15 January, 2018. The recent amendment to the Insolvency and Bankruptcy Code (IBC) is favourable for the company, which reads as:
"In case of resolution plans submitted before the ordinance came into force, persons who are rendered ineligible due to being holders of NPA accounts for more than one year can become eligible if they pay off all their dues within a thirty days period..." 
I think the PNB officials will now heave a sigh of relief now... 😁
The management of MBL Infrastructure Ltd had already expressed its desire to bring in Rs.120 crore for an amicable settlement with the consortium of lenders. On November 7, 2016, AK Lakhotia, Chairman and MD of MBL Infrastructures in a conversation with a business channel said that the company has a healthy order book of around Rs.8000 crores to be executed over 2 years. ICICI Direct recommended the scrip on October, '15 at Rs.247. MBL Infrastructure Ltd is likely to benefit from Rs.90000 crore package for the North Eastern Region.
The risk taking investors can continue accumulating the scrip of MBL Infrastructure Ltd in intraday declines. This stock is in T-group and hence avoid intraday trading.

#Those who are holding the shares of Orchid Pharma Ltd (Rs.23.25 - locked in the Upper Circuit) from around Rs.18, can continue to hold wiht a SL at Rs.21. I am looking for a target of Rs.27, in the coming days. 

#The shares of Housing Development & Infrastructure Ltd is consolidating around Rs.65, for the next target of around Rs.84. The management of Housing Development & Infrastructure (HDIL) is in talks with Union Bank of India (UBI) for a one-time settlement to stop insolvency proceedings against its arm Guruashish Construction. I am told it is in the final phase. My sources are also of the view that the things will get streamlined very soon.
The Company has been a major player in Mumbai real estate market with 90% land reserves in MMR and IS a market leader in Residential and Slum Rehabilitation (SRA) projects.
HDIL is currently executing the largest SRA project for rehabilitation of approximately 85,000 slum dwellers under expansion and modernization of Chhatrapati Shivaji International Airport, Mumbai. Approximately 33,000 housing units are currently under construction for this project.
The company which made an empire of sorts in the real estate space in the last 3-4 decades will not let it crumble down so easily. In November, last year there were media reports that Andhra Bank Ltd had withdrawn its insolvency application from the National Company Law Tribunal (NCLT) against HDIL as the realty firm has decided to settle outstanding dues. Moreover, HDIL is looking at monetizing its huge land bank of more than 20 crore sq.ft to clear off the debt of around Rs.2500 crores. I am looking at 12-18 months target of Rs.350-plus.

#Pincon Spirit Ltd recommended yesterday around Rs.37-38, hit another buyer freeze today at Rs.43.30. We can look for target of Rs.73-75 in the coming days.

~~ with inputs from Capital Market - Live News

Pre-Session: Market may gain in early trade

08-Jan-18: Market may gain in early trade on positive trading in Asian stocks and strong finish on Wall Street overnight. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 45.50 points at the opening bell.

Overseas, Asian stocks edged higher following firm US lead as investors awaited upcoming earnings releases. US stocks rose to record levels on Friday, 5 January 2018 even as Wall Street shook off jobs data that missed expectations. The US economy added 148,000 jobs in December, according to the Labor Department, as against expectations of 190,000 jobs.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 581.43 crore on Friday, 5 January 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) purchased shares worth a net Rs 243.13 crore on Friday, 5 January 2018, as per provisional data.

Among corporate news, NBCC (India) said it has received a contract from Ecotourism Development Corporation of Uttarakhand, Dehradun for Construction of Kotdwar-Ramnagar Kandi Road under Green Infrastructure/Green Road Project amounting to about Rs 2000 crore as project management consultant. The announcement was made on Saturday, 6 January 2018.

The 14-day long winter session of the Parliament concluded on Friday, 5 January 2018. The Speaker said that 16 bills were introduced in the Lok Sabha by the government in the session, of which 12 bills including the triple talaq bill was passed. Important bills passed during the session also included the Requisitioning and Acquisition of Immovable Property Bill and the Goods and Services Tax (Compensation to States) Amendment Bill.

Key indices ended at record high levels on Friday, 5 January 2018, tracking positive global equity markets on the back of robust economic data. The Sensex had risen 184.21 points or 0.54% to settle at 34,153.85, its record closing high.

~Powered by Capital Market - Live News

Housing Development & Infrastructure Ltd: Buy

CMP: Rs.63.95

Target:  Rs.381

Introduction: Housing Development and Infrastructure Limited (HDIL) is engaged in real estate activities with own or leased property. The Company has operations basically in the Mumbai Metropolitan Region (MMR). It has a range of projects in its kitty starting from  residential, commercial and retail projects, to slum rehabilitation to land development. Its residential projects consists of apartment complexes, towers and townships. Its commercial projects include premium office spaces and multiplex cinemas. In retail segment, it is focused on building shopping malls. Its slum rehabilitation projects is under the government scheme of offering development rights in exchange for clearing and redeveloping slum lands, while providing replacement housing for the displaced slum dwellers. Its commercial and retail projects include Dream Mall, Harmony Mall, Annex Mall, Kulraj Mall and HDIL Industrial Park. Its residential projects include Hill View, Dreams and Dheeraj Affaire.

Shareholding Pattern: The promoters hold 36.49%, while the general public holds 63.51%. Among the general public Mutual Funds hold 3.67% and Foreign Portfolio Investors holds 33.98%. The corporate bodies hold 5.63%, leaving very little in the hands of the retail investors.

Financials: For FY17, the total income of the company on standalone  basis was Rs.746.18 crores, as against Rs.1191.10 crore in FY16. The EPS of the company stood at Rs.4.08 as against Rs.8.17 in the same period previous year. The figures of the two corresponding years however, cannot be compared because sudden demonetization at the end of CY16 had sucked the juice out of the real estate and construction sectors.

On standalone basis, from September 2017 quarter the things have started improve with net sales touching Rs.163.21 crore as against Rs.89.85 crore in the June, 2017 quarter. The net profit of the company also improved on sequential basis to Rs.61.01 crore as against Rs.7.83 crore in the Q2FY18. While OPM remained almost flat at 11.27% (12.33% in Q1FY18), the NPM shot upto to 37.77% as against 9.12% speaking sequentially.
The H1FY18, EPS of the company came at Rs.1.59. The company  is expected to achieve a standalone turnover of Rs.550 crore with EPS projection of Rs.6-7.

Triggers:
#HDIL is among the top-five listed real estate companies in India. Over the last four decades, the group has done pioneering work in the area of affordable housing. While all real estate companies focus on building, HDIL also focused on land, especially in Mumbai where over 60% of habitable land is occupied by slums. By creating a model for rehabilitating slums, the compnay has freed up land for housing and infrastructure projects such as roads, pipelines and, most recently, the Mumbai airport expansion project which is probably the largest rehabilitation project of its kind in the world. HDIL caters to a diverse set of customers and this is reflected in its portfolio which features premium commercial projects, townships for housing India’s burgeoning middle class families and affordable housing for the bottom of the pyramid.

#It is a well known fact that, Indian economy is largely cash driven with substantial transactions taking place in cash and very marginal percentile in digital transactions. With the decision of demonetization, Investment power of consumers was affected due to cash not being readily available. Consequential to this, cash-sensitive sectors like Small Scale Industries and real estate sector suffered heavily during the second half of the CY16. Bank changed main focus on the single task i.e deposit and withdrawals; with the  result that their core function of lending was adversely affected, which again added adversity to Real estate as all stakeholders in this sector are financed by them. However, due to the implementation of GST Supply chain mechanism in real estate sector has revamped, as cascading effect in the tax was reaped off. Currently, the sale of land and buildings have been kept out of the ambit of GST and hopefully expected to be continued in future too. Construction of land and building will benefit from the rates declared for cement, bricks, and iron under GST, but looking at the rate specified, real estate sector is expected to be neutral.

#In the phase of major challenges, HDIL made a significant progress. The Company has successfully Registered its ongoing Projects under The Real Estate (Regulation and Development) Act 2016 which came into force with effect from May 1, 2017. Looking ahead to 2018, the Company will launch many affordable housing projects which will strengthen Company’s financial Position and flourish its arena of operations. Presently, HDIL is one of the largest developer and land bank owner in Mumbai Metropolitan Region.

#Company follows project completion method and financial performance comparison will not be appropriate, especially in view of demonetization and implementation of the GST. On consolidated basis the  Company recorded:-
• A Turnover of  Rs.74,617.74 Lacs in FY17 as against Rs.1,19,239.50 Lacs in the previous year.
• The Company’s Profit from operations for the year ended March 31, 2017 was Rs.20,856.28 Lacs as against Rs.28,642.35 Lacs in the previous year.
• The Net Profit for FY17 was Rs.17,524.58 Lacs as against Rs.34,035.15 Lacs in previous year.

# In line with the vision & mission of “Housing for All” by 2022 for “MAKE IN INDIA” concept, the Company launched “Budget Homes” in affordable housing segment in Mulund - Mumbai which provide 1BHK at Rs.45 Lacs, and the same after receiving a very good response got fully booked. The thrust given to affordable housing has been extremely encouraging. Developers, specially HDIL can now avail a 100% tax deduction on profits and gains if they construct affordable housing units. No other major sector of the economy has been given such attractive incentives. Further, infrastructure status for affordable housing has opened up more avenues of lower Cost, longer tenor funding in the Real Estate Sector. The margins in the affordable housing segmentis expected to be above 30%, in this segment.

#As of 31st March, '17: the company has Reserves and Surplus of Rs.10,886.51 crore, while the total current liabilities are Rs.3408.95 crore, which is much better than FY16 figures. The market cap of the company is only Rs.2,775.46, against its total land bank of around 20 crore sq.ft and its FY170 consolidated turnover of Rs.758.2 crores.

#HDIL is one of the cheapest stocks (P/B) in the Real Estate sector. Debt concerns for HDIL have eased over the past few quarters and the Cash Generation from core operations has been improving. Progress on asset sales would be the key to watch out for and it would help sort the cash flow/execution issues. Approvals for new launches are progressing well and the company has a good launch pipeline going for FY19. A leading brokerage house noted HDIL’s balance sheet cost of land is at 50-70% lower than the current market value. As of March 2017, the company has a total debt of Rs.2,476.56 crore.

#The stock of HDIL which closed at Rs.63.95 on last Friday, is more than 80% lower than its 7-year high price and more than 95% lower than its all-time high  price level of Rs.1,113, it hit on January 8, 2008.  The face value of the shares of the company is Rs.100, unlike Unitech Ltd and DLF Ltd which have Rs.2 as face value.
The Book value of the shares of the company is Rs.264.59, while its P/E is 19.09 against the sector P/E of 45.12. A decent P/E re-rating can take the scrip above Rs.133 in the short to medium term.

Conclusion: The stock closed above its 50D, 100D  and 150D EMAs on last Friday, which is a positive sign for the bulls. The RSI for the scrip is around 61, while MACD is in the buy mode. However, the short term oscillators are slightly in the overbought zone. The share after forming a double bottom on the daily chart is all set to break the resistance zone of Rs.66-67. On November 17, 2017 Morgan Stanley (France) S.A.S. bought 29,18,400 shares of Housing Development and Infrastructure Ltd at Rs.64.26 on the NSE; which now forms somewhat a base price for the shareholders.
Considering all the factors above, I find next target for the scrip of HDIL is Rs.84 and upon breaking of Rs.92-94 zone on the upside we can look for targets of Rs.97-99-121-133. The 12-18 months target for the scrip comes to around Rs.381.

Market Pulse

Key benchmark indices extended early gains and hit fresh intraday high in morning trade. At 10:30 IST, the barometer index, the S&P BSE Sensex, was up 158.16 points or 0.47% at 34,127.80. The Nifty 50 index was up 46.25 points or 0.44% at 10,551.05. The Sensex was trading above the psychological 34,000 mark after opening above that level. Positive global cues boosted sentiment.

The Sensex and the Nifty, both, hit record high levels in morning trade. The Sensex rose 205.57 points, or 0.61% at the day's high of 34,175.21 in morning trade, its record high level. The index rose 51.20 points, or 0.15% at the day's low of 34,020.84 in early trade. The Nifty rose 58 points, or 0.55% at the day's high of 10,562.80 in morning trade, its record high level. The index rose 17.50 points, or 0.17% at the day's low of 10,522.30 in early trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.61%. The BSE Small-Cap index was up 0.96%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,731 shares rose and 723 shares fell. A total of 109 shares were unchanged.

Most metal shares rose. Bhushan Steel (up 3.58%), JSW Steel (up 3.25%), NMDC (up 1.78%), Hindustan Copper (up 1.65%), Tata Steel (up 1.53%), Vedanta (up 1.39%), National Aluminium Company (up 1.14%), Hindalco Industries (up 1.04%), Hindustan Zinc (up 0.3%) and Steel Authority of India (up 0.15%), edged higher. Jindal Steel & Power was down 0.25%.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for March 2018 delivery was currently up 0.21% at $3.27 per pound on the COMEX.

FMCG shares were mixed. Bajaj Corp (up 1.14%), Britannia Industries (up 0.84%), Tata Global Beverages (up 0.82%), Colgate Palmolive (India) (up 0.50%), Jyothy Laboratories (up 0.42%), Hindustan Unilever (up 0.32%) and GlaxoSmithKline Consumer Healthcare (up 0.31%), edged higher. Godrej Consumer Products (down 0.2%), Nestle India (down 0.26%), Procter & Gamble Hygiene & Health Care (down 0.28%), Dabur India (down 0.45%) and Marico (down 0.45%), edged lower.

Overseas, most Asian shares rose as US jobs data pointed to firm economic growth. US stock indices closed at all-time highs on Thursday, while the Dow topped the 25,000 milestone for the first time. The Dow Jones Industrial Average rose 0.6% to finish at 25,075.13. The S&P 500 rose 0.4%. The Nasdaq Composite Index gained 0.2%.

The US ADP National Employment Report on Thursday showed US private employers added 250,000 jobs in December, the biggest monthly increase since March. Meanwhile, initial jobless claims, a tool to measure layoffs, rose 3,000 to 250,000 in the seven days ended 30 December 2017, the Labor Department said Thursday. The number of people already collecting unemployment benefits, known as continuing claims, fell 37,000 to 1.91 million.

Today's Calls:

#Buy Pincon Spirit Ltd at around Rs.37-38, for short term targets of Rs.63-71. It's old name is Sarang Viniyog Ltd which it changed to Pincon Spirit Ltd on May 09, 2012. Most of the liquor stocks were seen rising during the last few months after the honourable Supreme Court of India found ‘no merit’ in a plea seeking a ban on liquor across the country claiming that it caused death, health problems, rise in crime graph and financial loss to the people. It is pertinent to mention here that the Supreme Court of India allowed sale of liquor in hotels and restaurants on the national and state highways within the municipal limits, around 3 - months back. The apex court on December 15, 2016 had imposed a ban on sale of liquor within 500 metre of the state and national highways from April 1. However, on August 23, 2017 it clarified that the ban is not applicable within the municipal limit.

#Those who are still holding the shares of Orchid Pharma Ltd (Rs.22.15), formerly Orchid Chemicals Ltd and Pharmaceuticals Ltd from around Rs.18, when it was first recommended in this blog, can continue to hold with a SL at Rs.19.50.

#I have spoken with the source of MBL Infrastructure Ltd (Rs.29.20) and the feedback I got is positive, as the company is open and the employees are working. We will get a more clearer picture by 15th January, 2018. The government has recently amended the IBA, and now we can look for positive verdict from the NCLT. However, even if a strategic investor takes over it, it will be positive for the shareholders.

~~with inputs from Capital Market - Live News

Pre-Session: Market may extend gains

05-Jan-18: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 11.50 points at the opening bell on positive economic cues.

Overseas, most Asian shares rose as US jobs data pointed to firm economic growth. US stock indices closed at all-time highs on Thursday, while the Dow topped the 25,000 milestone for the first time. The Dow Jones Industrial Average rose 0.6% to finish at 25,075.13. The S&P 500 rose 0.4%. The Nasdaq Composite Index gained 0.2%.

The US ADP National Employment Report on Thursday showed US private employers added 250,000 jobs in December, the biggest monthly increase since March. Meanwhile, initial jobless claims, a tool to measure layoffs, rose 3,000 to 250,000 in the seven days ended 30 December 2017, the Labor Department said Thursday. The number of people already collecting unemployment benefits, known as continuing claims, fell 37,000 to 1.91 million.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 212.05 crore yesterday, 4 January 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 325.24 crore yesterday, 4 January 2018, as per provisional data.

Among corporate news, Bharti Airtel said that the company and Samsung announced a strategic alliance to bring a range of affordable 4G smartphone options to customers. As a part of this alliance, four top models from Samsung's popular Galaxy J-series range will be available with attractive cashback offers, bringing down the effective price of the device and making them highly affordable for customers. All devices will come bundled with Airtel's special recharge pack of Rs 199 that offers 1 GB data per day and unlimited calling. The announcement was made after market hours yesterday, 4 January 2018.

Shares of public sector banks will be watched. Media reports suggested that the Lok Sabha on Thursday gave its approval to the central government's request for additional spending of Rs 80000 crore to boost the capital health of public sector banks. The latest approval of funds will be utilised by March this year. The matter will now be heard in Rajya Sabha on Friday, 5 January 2018, reports added.

The stock market closed with modest gains yesterday, 4 January 2018, as positive cues from global markets boosted investor sentiment. The barometer index, the S&P BSE Sensex, rose 176.26 points or 0.52% to settle at 33,969.64. The Nifty 50 index advanced 61.60 points or 0.59% to settle at 10,504.80.

~~Powered by Capital Market - Live News....

WINNING STROKES

Yesterday, MBL Infrastructure Ltd hit the buyer freeze at Rs.29.50. The stock was repeatedly recommended in this blog for a target of Rs.110-plus. It will give you multibagger returns going forward, so please don't sell the scrip in a hurry. The company, couple of years back has forayed into Ports  Inland Waterways and looks to get orders from this sector too. 

It is pertinent to mention here that the government on Wednesday formed a ministerial committee headed by finance minister Arun Jaitley to decide what to do with old, pre-existing projects in ports, which have become unviable.  The government wants to address this legal tangle. The combined value of the projects is an estimated Rs.20,000 crore, shipping ministry officials said. 

According to the revised MCA, developers can exit a project by way of divesting equity up to 100 per cent after completion of two years from the COD. Under the extant contracts, the developer can exit all but 26 per cent stake after three years from COD. In another measure that would help cut costs, rent on “additional land” has been reduced from 200 per cent to 120 per cent of the applicable scale of rates. 

MBL Infrastructure Ltd is into following verticals and hence has an immense chance to grow, after the recent amendment in the IBA by the NDA government:

#Highway Construction, Operation & Maintenance

#Highway-BOT Projects

#Railways/Metro

#Housing Infrastructure

#Urban Infrastructure

#Industrial Infrastructure

#Inland Waterways/Ports

Around 10 million Indians migrate to cities each year. As per the World Economic Forum, India’s urban population is expected to almost double to 814 million between 2014 and 2050. In FY15, the estimated housing shortage in urban areas was 18.78 mn houses. As per a World Economic Forum report, there is an estimated ‘US$110 billion funding gap that could hinder India’s ability to provide basic urban infrastructure and services to its rapidly growing urban population.’ The present urban infrastructure is inadequate to address urban population demands. This provides the company with a huge opportunity into the sector. 

Dena Bank Ltd recommended around Rs.24.40 some weeks back, yesterday made a high of Rs.27.80 and closed at Rs.26.95, reaching the 1st target of Rs.27. We can look forward for targets of Rs.31-32 in the coming days. 

Simplex Projects Ltd recommended in this blog last month, yesterday hit the Buyer Freeze at Rs.47. We can look for short term targets of Rs.51-52, in the coming few weeks. Stay put.

Yesterday, the stock was United Bank of India Ltd was recommended to my BMA Wealth Creators Ltd's active clients and also to the Premium Members at Rs.18.30. Yesterday, the scrip touched an intraday high of Rs.19. We can look for short term targets of Rs.21-22 in the coming  days, upon breaking of the resistance zone of Rs.19.20-19.50. I will probably be recommending another stock today, hence keep an eye on the blog postings. 

The scrip of Suzlon Energy Ltd recommended in this blog around Rs.13.60, is finding difficulty to cross the resistance zone of Rs.16.50-17. But as long as it is in the zone of Rs.15.70-15.90, bulls still can hope of higher targets. Moreover, with the crude oil on the boil, it is likely that the renewable energy stocks will gain more currency in the coming days. 

Aban Offshore Ltd recommended several times in this blog starting from Rs.178, yesterday made a high of Rs.212.8. You can hold the stock with next targets of Rs.117-120; SL: Rs.104.

Those who had bought the shares of Prajay Engineers Syndicate Ltd at around Rs.10-11, or  those of my old clients who have averaged the scrip to around the same levels, can look for targets Rs.19-19.50 in the coming days. You will probably be happy to know that the stock has given a 5 year high on the daily candle stick chart. Though, I feel the momentum is likely to continue but still it would be prudent if you maintain a strict SL of Rs.16 and keep holding; for  higher targets in the coming weeks, as the government of India  is giving huge stress on affordable housing projects, apart from the SMART CITY projects. Don't forget this please.....!!

The scrip of Housing Development & Infrastructure Ltd (HDIL) is consolidating around the current  price of Rs.62 and is preparing for the next round of upmove to Rs.84-91. The developer had land reserves of 200.47 million quarter feet as of September 30, 2016. It boasts of being the owner of largest land bank in the Mumbai Metropolitan Region.  HDIL therrefore, is one of the cheapest stocks (P/B) in the Real Estate sector. Debt concerns for HDIL have eased over the past three quarters and the Cash Generation from core operations has been improving. Progress on asset sales would be the key to watch out for and it would help sort the cash flow/execution issues. Approvals for new launches are progressing well and the company has a good launch pipeline going for FY19. A leading brokerage house noted HDIL’s balance sheet cost of land is at 50-70% lower than the current market value. HDIL has already forayed into the affordable housing segment and it expects margins to be above 30%, in this segment.
The stock of HDIL which closed at Rs.62.15 yesterday, is more than 80% lower than its 7-year high price and more than 95% lower than its all-time high price level of Rs.1,113, it hit on January 8, 2008 You should accumulate this A-group company in intraday dips and keep holding.

The shares of Videocon Industries Ltd which was recommended at various price levels, the recent being around Rs.12.50, has been hitting the upper circuits since some time. If this trend continues then we can look for targets of Rs.27-31 in the coming days. However, this is a circuit stock so be careful, to book profit at the correct juncture. It closed ate Rs.23.65 in the BSE.

I am increasing the subscription charge of my Premium Services to Rs.18,000 per year from 16th January, 2017. So, rush for further details on the same at: suman2005s@rediffmail.com or sumanm2007s@gmail.com.