Pre-Session: Market may rise after recent sharp sell-off

07-Feb-18:  Market may edge higher in early trade tracking positive global stocks after a huge sell-off. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 119.50 points at the opening bell.

Overseas, Asian stocks edged higher after positive closing on Wall Street. US stocks closed on a higher note yesterday, 6 February 2018, albeit with wild swings witnessed during the day's trading, after two huge sell-offs in a row. The wild moves were attributed to a combination of factors like interest-rate fears, computer-driven trading and the obscure volatility funds that use leverage.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 2326.10 crore yesterday, 6 February 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1699.74 crore yesterday, 6 February 2018, as per provisional data.

Among corporate news, Hero MotoCorp's net profit rose 4.3% to Rs 805.43 crore on 14.8% growth in net sales to Rs 7305.49 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 6 February 2018.

Hero MotoCorp's chairman, managing director and chief executive officer, Pawan Munjal, said that the company grew on all key performance parameters including revenue, PAT and earnings before interest, taxes, depreciation and amortization (EBITDA) during the quarter, bucking the severe headwinds on the commodities front. With an enhanced focus on the premium segment and scooters, the company is confident of carrying the growth momentum forward, Munjal added.

Aurobindo Pharma, Cipla and Eicher Motors are scheduled to announce October-December 2017 quarterly results today, 7 February 2018.

On the macro front, the Reserve Bank of India's (RBI) two-day Monetary Policy Committee (MPC) meeting concludes later today, 7 February 2018 for the sixth bi-monthly monetary policy statement for 2017-18. The central bank is likely to keep its policy rate on hold, but could toughen its warnings against inflation. The MPC is expected to tilt towards a hawkish tone from its neutral tone following higher fiscal targets, oil price increases and higher minimum support prices (MSP) for crops.

The stock market registered sharp losses yesterday, 6 February 2018 amid global sell-off and in the aftermath of the introduction of the long-term capital gains (LTCG) tax on equities exceeding Rs 1 lakh at 10% in the Budget 2018 unveiled on 1 February 2018. The Sensex had fallen 561.22 points or 1.61% to settle at 34,195.94, its lowest closing level since 5 January 2018.

~~Powered by Capital Market - Live News..

Long Term Capital Gains Tax: Few Words

Photo: The Hindu Business Line

BSE Sensex and NSE’s Nifty 50 closed over 2% lower on last Friday, losing most since November 2016 as as investors were felt disappointed after the NDA government proposed a  10% long-term capital gains (LTCG) tax on equity gains above Rs.1 lakh. Investors were also worried after the finance minister revised upward its fiscal deficit target.

For the week, booth the indices fell 2.7% each. BSE Sensex closed lower by 839.91 points at 35,066.75, while the Nifty 50 fell 256.30 points to close at 10,760.60 on last Friday.

The Sensex plunged over 200 points on Thursday also as the Finance Minister read out the provision of bringing back the long-term capital gains tax on equity shares and equity-oriented mutual funds in the Budget session.

But stocks were soon on their feet. The arguments put forth were, “this was expected anyway and is already factored in to stock prices,” “the grandfathering clause helps protect the profits so far,” “tomorrow is another day,” and so on. However, that was absent on last Friday, after the NDA government's UNHOLY move to bring down a rising share market.

These rules come into force from April 1, 2019 and will apply to the assessment year 2019-20 and subsequent assessment years. So sale of shares held for more than one year, executed after April 1, 2018 will be taxed at 10%.

The FM, in other words, has given investors a one-time chance, to lock in to their profits now, and escape LTCG on profits made so far, till the prescribed date.

Stocks have been soaring higher over the past 12 months on poor fundamentals, taking valuations to crazy levels. I had already mentioned in one of the my posts that unless the government slams the brakes, the markets are likely to remain crazy. 

Indian markets do not have much depth and hence a small push can cause a steep sell-off of at least 10% to 20%. In such a pessimistic scenario, many investors might want to book their long-term gains, ahead of April 1, to avoid paying 10% tax; when these rules come into force. 

Even if stock prices rally higher from these levels, investors will sell, to avoid tax on the profit made from February 1 to end of March. So effectively, Arun Jaitley has put some sort of roof, on this rally; at least for the next few months.

The Rs.1 lakh limit for taxing LTCG is not likely to help most investors as their portfolio values have swelled with the market rally. Moreover, there are hardly any  small retail investors left, as the government failed to provide any incentive to this community -- most of the traders are either compulsory jobbers or are rich, with institutions taking a major role. 

Under existing provisions, where the total income of a Foreign Institutional Investor (FII) includes income by way of long-term capital gains arising from the transfer of certain securities, such capital gains is chargeable to tax at the rate of 10%. But long-term capital gains arising from transfer of equity or equity-oriented fund or a unit of business trusts was so far exempt from income-tax.

The Budget has stated that as in the case of domestic investors, the FIIs will also be liable to tax on such long-term capital gains only in respect of amount of such gains exceeding one lakh rupees.

The FIIs are unlikely to take the new laws in good spirit. 

Most market participants said the introduction of the long-term capital tax gains tax was as expected. However, they welcomed the grandfathering provision, and felt it would act as a soothing factor. Hence, the decision to levy LTCG on equity at the rate of 10% is not surprising and is unlikely to have too adverse impact on the markets.

The equities still remains as the most attractive asset class from a taxation perspective since the holding period to be eligible for LTCG on most other asset classes is three years. The rationalization of LTCG as expected though will create negative on sentiments in the short term but robust ROE  is likely to absorb this 10%, if corporate earnings growth happen as expected.

However, I am having a gut feeling that a large chunk of money will now start to shift slowly towards other asset classes like Real Estate and Gold from equities and mutual funds, for the reasons best known to all of you...... 😄😄😄😄

In the longer term, I think taxing long term capital gains is healthy for the overall economy because according to a government spokesperson: in the first year (2018-19), the NDA government is likely to mop up Rs.20,000 crore (from long term capital gain tax) due to grandfathering. Next year (2019-20) onward, it would be about Rs.40,000 crore.

This future spending by the government, is expected to give a push to the demand or revive the now moribund demand cycle in the Indian economy; though  the inflation fear lurks, due to excessive money coming in the system in the short term. 

Many analysts are of the opinion that other than a knee-jerk reaction, equity market will not be impacted in the medium and the long term as it is still the only real investment opportunity available.

FII investments may be affected in the short run as the issue of tax compliance come up which increases operational cost. Likewise mutual funds may see a brief impact but the grandfathering till 31st January. The real disappointment was the continuation of STT along with LTCG, logically only one should be there.

The Finance Secretary Hasmukh Adhia recently said: This is the first year when we started asking for reports on this. We have got startling Rs 3.76 lakh crore being reported as exempted income. Isn't that too much? Just imagine you as salaried class would have earned this much income, you pay 30% for your toil.  

But its't clear to me, why the government is mixing income tax with capital gains tax, throwing a surreal reason. Besides, the NDA government's mantra to tax the hard working RICH COMMUNITY to feed the poor will surely antagonize a section of the voters. 

In this context, I would like to highlight  two very important issues here:

#The 1st  Class season tickets of railways in Mumbai's suburban railway system is already around 4x times the 2nd class. The question is who travels in the 1st class? Mostly those in Rs.20,000-25000 category -- with astronomical house rents and living style, this amount of monthly salary is not too much in a metropolitan city like Bombay. This has  definitely pinched the middle class.

#In last November, the Goods and Services Tax Council lowered the tax rate for restaurants (barring those located in luxury hotels) to 5%; but did away with input tax credit in the restaurant business. Under input tax credit, businesses can claim an offset on the tax they pay on inputs against the tax they pay to the government on final products. But after this decision, a restaurant is no longer entitled to claim input tax credit on the food items it uses as raw material.. Also, in case of luxury dining the GST is still ~18%. Restaurants located in high-rent areas – which attract a high Goods and Services Tax rate of 18% on commercial rents hereto has been made the greatest scapegoats too feed the poor. 

Another interesting point is that: in all these so-called reforms of the government, the HINDU GENERAL CASTE, whose history in struggle for Independence of India is etched in RED LETTERS, has been quietly left out from the process. 

But having said, we cannot also expected too much from the Congress and the Leftists either; as their earlier activities had clearly indicated similar motives to eliminate the poor and downtrodden in the GENERAL CASTE masses from much of the government incentives. 

Though pungent, it might sound, but this is how the politics in India has shaped-up post Independence of India, with Dr.B R Ambedkar's "Hulla-Gulla" for caste based reservations, followed by religion based.

In his writings, Dr BR Ambekar unraveled an ideological link between Manu who inspired Nietzsche, who in turn inspired Hitler, who in turn (along with Mussolini) inspired the most revered Manuwadis of the Hindu Mahasabha and the RSS: Balakrishna Shivram Moonje, Keshav Baliram Hedgewar and Madhav Sadashiv Golwalkar.

It is most surprising that while the NDA government and their associates are vocal about the atrocities of Islamic and other invaders, they are mum about "Bharat Ratna" & Chairman of the Drafting Committee of the Indian Constitution of the Dr.B R Ambedkar's virulent anti--Hindu diatribes, especially against the Brahmins and Vaishyas (Bania community) his take on "Dalits" who fought for the British to welcome them to India. 

But it seems from some of my Internet based research that more than than Dr.B R Ambedkar it is his blind followers and the Indian media who had tried to vilify the two India communities the most: The Brahmins and the Banias (Vaishyas). 

I feel it would not be an exaggeration to mention here that after Dr.Arun Shourie challenged Dr Ambedkar's contribution to Indian Independence through his book "Worshipping False Gods" he was left out by the Narendra Modi, an OBC (but this Gujarati community is known to be rich and prosperous) in all his cabinet reshuffles. 

Rediff.com wrote:

There is not one instance, not one single, solitary instance in which Ambedkar participated in any activity connected with that struggle to free the country. Quite the contrary--at every possible turn he opposed the campaigns of the National Movement, at every setback to the Movement he was among those cheering the failure.

Thus, while the years culminated in the country's Independence, in Ambedkar's case they culminated in his becoming a member of the Viceroy's Council, that is -- to use the current terms -- a Minister in the British Cabinet in India.

The writings of Ambedkar following the same pattern. The Maharashtra government has by now published 14 volumes of the speeches and writings of Ambedkar. These cover 9,996 pages. Volumes up to the 12th contain his speeches and writing up to 1946. These extend to 7,371 pages. You would be hard put to find one article, one speech, one passage in which Ambedkar can be seen even by inference to be arguing for India's Independence. Quite the contrary.

Pause for a minute and read the following:

All me to say that the British have a moral responsibility towards the scheduled castes. They may have moral responsibilities towards all minorities. But it can never transcend the moral responsibility which rests on them in respect of the untouchables. It is a pity how few Britishers are aware of it and how fewer are prepared to discharge it. British rule in India owes its very existence to the help rendered by the untouchables. Many Britishers think that India was conquered by the Clives, Hastings, Coots and so on. Nothing can be a greater mistake. India was conquered by an army of Indians and the Indians who formed the army were all untouchables. British rule in India would have been impossible if the untouchables had not helped the British to conquer India. Take the Battle of Plassey which laid the beginning of British rule or the battle of Kirkee which completed the conquest of India. In both these fateful battles the soldiers who fought for the British were all untouchables...Who is pleading thus to whom? It is B R Ambedkar writing on 14 May 1946 to a member of the (British) Cabinet Mission, A V Alexander. Nor was this a one-of slip, an arrangement crafted just for the occasion. Indeed, so long as the British were ruling over India, far from trying to hide such views, Ambedkar would lose no opportunity to advertise them, and to advertise what he had been doing to ensure that they came to prevail in practice. 

Therefore it seems, the NDA government like most of its adversaries, is not bothered of a poor GENERAL CASTE BUSINESSMAN unlike its ATTITUDE towards a Businessman from the Dalit or OBC Groups. 

It would not be an exaggeration to mention here that even the Jains, whose names hardly comes in the freedom struggle gets more governmental support than the GENERAL CASTE HINDUS. This is the biggest lacuna, post independence governance of India. 

I am sure that this TAX TERRORISM and other BIZARRE methods to fill the government coffers by employing the formula: 'Tax Rich hard to FEED the Poor", will be used for generating votes, through schemes directed mostly to the Minorities and SC/ST/OBCs, part of the population. 

The General Caste (from all Religions) should therefore, now think seriously as how to extract their dues from the government's collection of taxes which had squeezed them so hard......because how much strange it looks, the NDA government is not bothered about the well-being of the POOR and DOWNTRODDEN from the GENERAL CASTE and has hereto kept them out from the special groups, meant for upliftment and other benefits.

Note: 
I don't have anything against the SC/ST/OBC and Minorities in India. I feel the vulnerable among them need center's support and I wholeheartedly welcome this view. But then assistance ONLY in the name of CASTE, RELIGION, GENDER (women's reservation bill, anti-men laws, etc) and the like, without taking into account other socio-economic factors, is a dangerous concept in a diverse country like India. 

It is therefore, to be understood that I am only speaking about some typical birth based reservations in India and its fall out among the general population. Unfortunately, it is the government of the day, who is segregating the masses not in terms of a general criterion, but on the basis of where he/she was BORN -- aren't we REVERTING back to the Medieval Period ?

I hope you would also agree with me, that POOR and DOWNTRODDEN from any community cutting across CASTE, RELIGION and other such parochial parameters, should be bolstered so that India grows holistically. 

The Onus is therefore on you, my fellow Indians, to raise the pitch of your voices against the CASTE, CREED, RELIGION and GENDER based discriminations, undertaken by the successive governments in India, so that it reaches Delhi and the center is forced to act on the same. 
Bibliography:
#The Hindu Businessline,
#The Economic Times,
#Live Mint, 
#MoneyControl.com and other sources from the Internet.

LTCG Tax in Equities: Rob Peter to pay Paul?

Photo: India Infoline

The much anticipated LTCG Tax is now back with a new avatar in finance minister, Arun Jaitley's budget documents. The LTCG of 10% on capital gains of over Rs 1 lakh without the benefit of indexing, will co-exist with the existing securities transaction tax or STT. Needless to say, with the reintroduction of the LTCG and along with the STT, equities will bear the brunt of both taxes together. 

However, since the exemption under long term being abolished, there will be short term sell off in equities to get out or the traders will exit before Rs.1 lakh cap is violated. This is seen positive for the brokerage companies who might see more revenues, due to more and more short term trading. However, on the flip side, it will discourage investors to bring large amounts of legitimate money from other sources into equities. And unless and until there is large scale retail participation, there will not be much improvement in the retail brokerage segment of the equity brokerage houses. 

Hereto, this NDA Government has done very little precious to lift the sentiment of the people towards equity investing  I had mentioned in my earlier write up that as long as the government or the RBI does not slam the brakes, the markets are likely to go crazy. The inevitable has happened as the FM pulled the levers to reign in the equity markets. 

Andy Mukherjee wrote in ET on 30 January, 2018: 

A long-term capital-gains levy on equity can be problematic in a country perennially short of domestic savings. In a frothy stock market, it's like crying "fire" in a crowded room. Profits from selling shares that were bought more than a year earlier has been tax-exempt in India for a decade and a half. It was replaced 14 years ago by an imposition on all securities transactions, regardless of gains or losses. Every year, there's talk of bringing back a capital-gains charge. Speculation is unusually intense ahead of the Feb. 1 federal budget, with Deloitte Touche Tohmatsu India LLP calling capital-gains tweaks "low-hanging fruit." 

This move of taxing long term capital gains, can also be looked upon in another way, as indirect boost to the moribund real estate sector, where illegitimate funds still finds lot of avenues  to enter.  Also, the cap of Rs.1 lakhs is too small for today and cannot be called as a safeguard limit for small investors, especially when many stocks have more than doubled in 52-weeks. 

Another important announcement which the Finance Minister made post his budget speech was that Rs.3.67 lakh crore was the exempted income on long term capital gains in the last assessment year alone, a bulk of which came from large investors. Mr.Jaitley is of the opinion that gains tax, can not only support the health scheme, but also foot the bill for the other major announcement in his budget – minimum support price (MSP) payment to farmers that is 1.5 times the production cost. 

This is thus a positive development for the Agri sector and health insurance companies, apart from the private hospitals, medical equipment makers, and real estate. This scheme is also expected to give a boost to the rural economy.  

Budget 2018 has proposed a tax relief for buyers and sellers of property by allowing it to be valued at up to 5% below circle rates for calculation of stamp duty and capital gains tax. This is likely to revive 2ndary market transactions. 

The Times Now writes: 

#As many as 51 lakh houses in rural areas are to be built in 2018-19. Also, a dedicated Affordable Housing Fund was announced in this Budget. These are the right moves towards achieving the vision of Housing for all by 2022.

#The regional air connectivity scheme to connect 56 unserved airports is a good news for business growth and office space demand in smaller cities, with a natural spinoff demand for housing on the back of job generation.

#Allocation of Rs.1 lakh crore to update education infrastructure over the next four years may result in the development of new education institutes. In addition, if the Government emphasizes more on a definitive student housing policy, a new avenue will open up for the real estate sector.

#The allocation of Rs.5.97 lakh crore on infrastructure spending is a welcome move, though we need a massive push to ensure that the country’s infrastructure meets global standards.

The NDA government continues to boost the affordable housing sector by setting up an affordable housing fund under the umbrella of the Pradhan Mantri Aawas Yojna, which will give impetus to the growth of  companies like Housing Development & Infrastructure Limited or HDIL (Rs.56.60). 

The insurance industry has welcomed the Budget saying the proposals for a national safety net for the poor in particular and the health insurance sector in particular will act as a catalyst to increase health insurance penetration in India. Extending the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJY) and the Pradhan Mantri Suraksha Bima Yojana (PMSBY) is a positive move to bring more people into the insurance ambit, they said. Taking a cue from this we could see a spurt in the share price of Reliance Capital Ltd (Rs.485.90).

Note: I am still recovering from the surgery in gums followed by RCT. I am not able to speak well due to due this episode. Hence, I have kept my mobile phone in switched off mode; as temptations to speak might delay the healing process. My dentist has advised me to speak at little as possible. You can communicate with me, through e-mails, Facebook and Yahoo Messengers. 

Market Pulse

Key benchmark indices were trading lower in early trade, tracking negative leads from Asian markets and overnight slide on the Wall Street. At around 10:51, the BSE Sensex was seen at 35,925.06 down 108.67 points or 0.30%, while Nifty was trading at 11,023.05 down 26.60 points or 0.24%.

The Sensex slipped below the psychological 36,000 mark at the onset of trading session after opening above that level.

Among secondary barometers, the BSE Mid-Cap index was down 0.39%, underperforming the Sensex. The BSE Small-Cap index was down 0.11%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 706 shares fell and 575 shares rose. A total of 61 shares were unchanged.

Overseas, Asian shares were trading lower after US stocks sold off for a second day. US stocks declined on Tuesday, as heavy losses in health-care and energy shares weighed on the main indexes. Climbing US bond yields, which imply a rise in borrowing costs, also put pressure on stocks.

US Federal Reserve's Federal Open Market Committee (FOMC) commenced its two-day meeting on monetary policy yesterday, 30 January 2018, with a policy decision due later in the global day today, 31 January 2018. The Fed, in a widely expected move, had raised interest rates by 25 basis points (bps) to a range of 1.25-1.5% in its December monetary policy meeting.

Closer home, Mahindra & Mahindra (M&M) was up 0.53%. The company announced its foray into the sprayers business under the aegis of its Farm Equipment Sector through the acquisition of a 26% equity stake in M.I.T.R.A. Agro Equipments, a Maharashtra-based AgTech company (MITRA). The announcement was made after market hours yesterday, 30 January 2018.

Under the transaction, which is expected to close by February 2018, M&M will acquire a 26% equity stake in MITRA through a fresh infusion of capital into the company. The association with Mahindra will help accelerate the growth of MITRA, which designs and manufactures proprietary sprayers for horticulture crops.

Bajaj Auto was down 0.68%. The company said that pursuant to letter dated 16 January 2018 received by the company from the Workers Union (Vishwa Kalyan Kamgar Sanghatana), an indefinite hunger strike has commenced from 29 January 2018 at Akurdi and Chakan. The main reasons for the indefinite hunger strike as mentioned in the letter are the pending issue of eight workmen dismissed from the services for various acts of misconduct in 2013 -14 and dismissal of six workmen who did not report at the place of transfer/ deputation in spite of court orders, and delay in conclusion of the wage review process which is due with effect from 1 April 2016. The matter is pending before the Industrial Court, Pune and High Court of Bombay. The announcement was made after market hours yesterday, 30 January 2018.

Bharat Electronics was down 4.63%. The company's net profit fell 18.93% to Rs 302.84 crore on 12.92% rise in total income to Rs 2562 crore in Q3 December 2017 over Q3 December 2016. The announcement was made after market hours yesterday, 30 January 2018.

The board of directors of the company approved the proposal to buyback of not exceeding 2.03 crore shares of the company representing 0.83% of the total number of equity shares in the paid-up share capital of the company, at a price of Rs 182.50 per equity share payable in cash for an aggregate consideration not exceeding Rs 372.25 crore, representing 5% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone financial statements of the company for the financial year ended 31 March 2017.

Syndicate Bank was down 0.41%. The bank said that the board meeting will be held on 2 February 2018, for approving the revised capital plan of the ban from earlier Rs 3500 crore (of which Rs 1150.80 crore has been raised through qualified institutional placement) to Rs 3990 crore for the financial year ending 31 March 2018). The equity capital may be raised through QIP/rights issue/follow on public offer and or preferential allotment to LIC, Government of India and other financial institutions in one or more tranches depending on the prevailing market conditions. The announcement was made after market hours yesterday, 30 January 2018.

Indiabulls Housing Finance was down 0.69%. The company said that the bond issue committee of the company approved the issue and allotment of Rs 315 crore, 7.8% payable annually secured synthetic Rupee notes due February 2021. The announcement was made after market hours yesterday, 30 January 2018.

The next major trigger for the market is Union Budget 2018-2019, which will be presented by the finance minister Arun Jaitley in the parliament on Thursday, 1 February 2018.

The Budget Session of the parliament began on 29 January 2018. The first phase of the budget session of the parliament is being held from 29 January 2018 to 9 February 2018. After a recess, Parliament will meet again from 5 March 2018 to 6 April 2018, as per reports.

The Economic Survey 2017-18 was tabled in Parliament on 29 January 2018. The survey estimated that India's economy should grow between 7% and 7.5% in the 2018/19 (April-March) with exports and private investment set to rebound. The survey estimated that gross domestic product will have grown 6.75% in the current fiscal year ending in March 2018.

Today's Calls:

#Buy Eros Media Ltd at Rs.205, T: Rs.237-251, SL: Rs.197. 

#Buy Suzlon Energy above Rs.14.7, T: Rs.17, SL: Rs.14.2. The government could come up with some incentives for the Wind Energy sector.

#Buy Opto Circuits Ltd at around Rs.11, T: Rs.14, SL: Rs.9.6. The government could give some incentives to the medical equipment makers, in the ensuring budget. The stock is also good on the charts after a long time.

#Those who are still holding the shares of Hindustan Zinc Ltd can look for targets of Rs.221-222. Keep a trailing stop of 2%.

#Those who are holding the shares of HDIL inspite of its fall, can start averaging the same at around Rs.58, for targets of Rs.61-62. The government could give some relief to the REAL ESTATE sector, in the upcoming budget. 

#Buy Cadila Healthcare at around Rs.426,  T: Rs.432-435, SL: 421 on T+2 basis. This is a pure chart based call. 

#Those who are holding the shares of Urja Global Ltd (Rs.9.35 in the NSE and Rs.9.99 in the BSE), should look to exit the counter, before it starts hitting the lower circuits. The stock is highly overvalued and the current prices does not justify any valid reasoning.

#Buy Bhusan Steel Ltd at around Rs.52. for a short term target of Rs.66-69. The takeover story by Arcelor Mittal or other steel behemoths is still there.

~~with inputs from Capital Market - Live News

Note: I am not well and have undergone a minor surgery in the left jaw before the RCT. I might need another surgery to fix the problems of the incisors. Pain is there (not excruciating may be because of administration of strong pain killer) in the Left Jaw, but the things are looking a little better now. Hope the ordeal will soon be over and I will be back to my normal self again. My health conditions have taken a severe beating since the last few months. I have recovered from Malaria only a month back and now this issue is another bolt from blue.

Hence, the updates on this blog might get affected, till I fully recover from the cascading effects of multiple negative health problems governing my life cycle and also due to pile of work in my other verticals, which remained unfinished due to the same reason. 

Meanwhile, play light before the budget and use stop  losses in case the market does not recover, even after the budget.

Pre-Session: Market may extend losses on negative global cues

31-Jan-18: Overseas, Asian shares were trading lower after US stocks sold off for a second day. US stocks declined on Tuesday, as heavy losses in health-care and energy shares weighed on the main indexes. Climbing US bond yields, which imply a rise in borrowing costs, also put pressure on stocks.

US Federal Reserve's Federal Open Market Committee (FOMC) commenced its two-day meeting on monetary policy yesterday, 30 January 2018, with a policy decision due later in the global day today, 31 January 2018. The Fed, in a widely expected move, had raised interest rates by 25 basis points (bps) to a range of 1.25-1.5% in its December monetary policy meeting.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 105.56 crore yesterday, 30 January 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 281.65 crore yesterday, 30 January 2018, as per provisional data.

Among corporate news, Mahindra & Mahindra (M&M) announced its foray into the sprayers business under the aegis of its Farm Equipment Sector through the acquisition of a 26% equity stake in M.I.T.R.A. Agro Equipments, a Maharashtra-based AgTech company (MITRA). The announcement was made after market hours yesterday, 30 January 2018.

Under the transaction, which is expected to close by February 2018, M&M will acquire a 26% equity stake in MITRA through a fresh infusion of capital into the company. The association with Mahindra will help accelerate the growth of MITRA, which designs and manufactures proprietary sprayers for horticulture crops.

ICICI Bank, L&T, NTPC and Vedanta will announce Q3 results today, 31 January 2018.

Key benchmark indices registered modest losses yesterday, 30 January 2018. The barometer index, the S&P BSE Sensex, lost 249.52 points or 0.69% to 36,033.73. The Nifty 50 index lost 80.75 points or 0.73% to 11,049.65. Negative global cues weighed on the sentiment. The Sensex and the Nifty, both, hit almost 1-week closing low.

The next major trigger for the market is Union Budget 2018-2019, which will be presented by the finance minister Arun Jaitley in the parliament on Thursday, 1 February 2018.

The Budget Session of the parliament began on 29 January 2018. The first phase of the budget session of the parliament is being held from 29 January 2018 to 9 February 2018. After a recess, Parliament will meet again from 5 March 2018 to 6 April 2018, as per reports.

The Economic Survey 2017-18 was tabled in Parliament on 29 January 2018. The survey estimated that India's economy should grow between 7% and 7.5% in the 2018/19 (April-March) with exports and private investment set to rebound. The survey estimated that gross domestic product will have grown 6.75% in the current fiscal year ending in March 2018.

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

Urja Global  Ltd: A case of Unbridled Stock Manipulation or too much Euphoria.....?

Photo: BCG Attorney Search

The stock of Urja Global Ltd (Rs.9.72 on Re.1 Face Value and Rs.97.2 on Rs.10 face value) has been hitting the upper circuits since sometime. This Re.1 face value stock has been hitting the buyer freezes since some videos surfaced in the YouTube, claiming its growth story in the solar power sector, when majority of its established peers are not doing that well.

On reviewing its financials and other crucial parameters, what I find is:

#The net profit for Q2FY18 is only Rs.41 lakhs against a revenue of Rs.28.92 crore, giving an EPS of Re.0.01 or only 1 paise on its Re.1 face value share. 

#The depreciation shown is Re.1 lakh which does not make any sense, considering its product pipeline and its solar power business. 

#Interestingly its NPMs and OPMs are almost same. It has OPM at 1.45% while NPM at 1.43%, which looks quite bizarre. 

#If we look at its FY17 results, we find that it has a total income of Rs.118.15 crore, while its net profit is only Rs.1.03 core, which is less than even 1% of its turnover. This leaves many unanswered questions about its business model.

#In early November, 2017, the company announced the signing of Memorandum. Urja Batteries Limited, a subsidiary of Urja Global Limited, signed the Memorandum of Understanding (MOU) with Micromax Energy Limited. As per the MOU, the company will manufacture and supply batteries on OEM basis to Micromax. But singing of such documents does not mean much unless actual ground work begins. At that time scrip price was ruling around Rs.2.23, against the CMP of Rs.9.72 or more than 4 times. Or in other words the scrip price has become around 4 times in just 3-4  months.

#Urja Batteries, a part of Urja global, is a leading battery manufacturer in India that specializes in lead acid battery for Industrial, Solar, and Standby power solutions. However, there are huge number of me too lead acetate battery manufacturers in India, leaving it in the face of immense competition which is already seen in its very low margin business. 

#The Live Mint wrote today: India’s quest for low clean energy tariffs “possibly contributed” to the demands for renegotiation of the already signed power purchase agreements (PPAs), the Economic Survey said on Monday.

This in turn may result in legal battles and bring uncertainty for the sector, with the banks becoming wary to lend to such projects, the Survey cautioned.

This comes in the backdrop of India’s wind power tariffs plummeting to Rs.2.43 per kilowatt-hour (kWh) at an auction conducted by state-run Gujarat Urja Vikas Nigam Ltd last month, beating the record low solar tariff of Rs.2.44 per unit registered in May.

While solar power tariffs rose to Rs.2.65 per kWh at an auction conducted by the Gujarat government in September, last month’s auctions conducted by state-run Solar Energy Corp. of India threw up winning bids of Rs.2.47 and Rs.2.48 per unit.  

If this is the condition of renewable energy sector, then what is the growth story people are talking about in this space?

#It has a market cap of Rs.493 crore against its FY17 turnover of Rs.118.15, showing that the share price is already highly over valued, at the current set of financials. And, hence its future price as against its fundamentals and its highly touted growth story remains skeptical. 

#Its promoter holding is 33.52%, which means they do not have full control over management decisions. 

#Its book value according to Moneycontrol.com is Rs.3.23 against the CMP of Rs.9.72. Or  it is trading at around 3 x Book Value. However, the ET gives its book value at Rs.30.45.

Moreover, its P/E is at whooping 447.5 against the industry P/E of 38.98. Even if we discount, the extraneous factors, its PE of 447.5 does not give much justification of a buy at the CMP.

Besides, a renewable energy share with ordinary product portfolio is trading at Rs.97.20 (of Rs.10 book value) -- doesn't that look strange? However, the stock markets all over the world is guided more by sentimental play rather than fundamentals in the short term. Or according to my analysis, Mr.Market is never perfect in the short term and is guided by the cycles of too much euphoria and pessimism.....

The above factors, gives some signs of stock manipulation by the vested groups. I hope the regulators will swing into action and take pains to find out the unnamed entities behind making such videos in YouTube; before the horse actually bolts the door.  

The point is if money finds place in such highly overvalued scrips, then from where the money will flow in real turnaround stories like 3i Infotech Ltd (Rs.6.40) or Hindustan Zinc Ltd (Rs.310.75)?

Note: I am having severe teeth problems with excruciating pain in the Jaws. I am likely to be operated tomorrow -- if the situation turns more teething then by today night. Hence, the updates of the blog is likely to get affected in the near future. Please bear with me.

Pre-Session: Market may open higher on positive global cues

29-Jan-18: Market is seen opening higher, tracking positive leads from Asian markets and overnight rally on the Wall Street. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 26 points at the opening bell.

Overseas, Asian shares were trading higher, mirroring sharp gains seen in the last session on Wall Street. US stocks surged on Friday, 26 January 2018. A reading of fourth-quarter gross domestic product came in slightly softer than expected but was viewed by investors as healthy enough to perceive that the economy is on firm footing. The Dow Jones Industrial Average rose 0.85%. The S&P 500 index climbed 1.18%. The Nasdaq Composite Index surged 1.28%.

US gross domestic product (GDP) for the fourth quarter rose 2.6% as consumption and business activity picked up.

The Federal Open Market Committee (FOMC) of the US Federal Reserve holds its next two-day monetary policy meet on Tuesday, 30 January and Wednesday, 31 January 2018. The Federal Reserve will announce its interest rates decision on Wednesday. The Fed, in a widely expected move, had raised interest rates by 25 basis points (bps) to a range of 1.25-1.5% in its December monetary policy meeting.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 937.31 crore on Thursday, 25 January 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 965.67 crore on Thursday, 25 January 2018, as per provisional data.

Among corporate earnings of prominent companies, HDFC, IDFC and Tech Mahindra will announce Q3 results today, 29 January 2018.

Among corporate news, net profit of Maruti Suzuki India rose 3% to Rs 1799 crore on 13.93% rise in net sales to Rs 18940 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours on Thursday, 25 January 2018.

Key benchmark indices corrected on profit booking on Thursday, 25 January 2018, after scaling record high levels in the past few sessions. The barometer index, the S&P BSE Sensex, fell 111.20 points or 0.31% to settle at 36,050.44. The Nifty 50 index fell 16.35 points or 0.15% to settle at 11,069.65. The Sensex ended above the psychological 36,000-mark after falling below that level in intraday trade. India's stock market was closed on Friday, 26 January 2018, for Republic Day holiday.

The next major trigger for the market is Union Budget 2018-19, which will be presented by the finance minister Arun Jaitley in the parliament on Thursday, 1 February 2018.

President Ram Nath Kovind will address the joint sitting of the two Houses today, 29 January 2018, and the Economic Survey will be tabled on the same day. The first phase of the budget session of the parliament will be held from 29 January 2018 to 9 February 2018. After a recess, Parliament will meet again from 5 March 2018 to 6 April 2018, as per reports.

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REMINISCENCE

I have been in the blogosphere since more than a decade, after trying my hand in Yahoo and Google groups; though many of my contemporaries have perished in the warp of time. I feel I don't have to remind you of their names; as you perhaps know many of them....and my historical conflict with one from my home state, Assam. 

I maintain an open-book-style, where the performance of my calls are etched on my blog pages or in other words, one can judge me through my blog-post. Needless to say, those who are with me since a long-long-time, are already privy to my fact-sheet. Your good wishes, innuendos, whispers and murmurs have often helped to improve my style of speaking with you directly, through this mechanism. 

Hope in future too, I would be able to disseminate information to the you in the same way and with passion like I did hereto, especially to the small investor community; keeping the delivery frank, intimate, professional, adventurous and sometimes even romantic. I believe that although the contents of this blog may not be viewed as an investment manual, however those seeking perspective from an expert mind in equity investing will find a great deal in its pages.

But, before, I pen my thoughts further, let me say that even I'm NOT infallible in equity investing space; though the quantum of mistakes may be less than the novices and/or new entrants. 

Also, my hints, tips and suggestions presented here are colour blind-- to say precisely, I don't look into the caste or creed or religion or linguistic orientation or political background of the investor/trader, when I share my views here in this blog. In other words, I am like a doctor, who attends to patients of any colour or caste or any community, when the investments (Equity, Film Financing, Real Estate, Metal Scrap, etc etc) are highlighted -- I am absolutely rigid and crystal clear in this vertical. I don't think anyone has any complaint, as far this part of me, is concerned. May be because of this, I have clients and well-wishers scattered across the globe.

Now switching topic, it is pertinent to mention here that surreal financial killings have always been a part of the stock market euphoria since 1920s. The present condition of India economy can be termed as a "BUBBLE IN SLOW MOTION", especially in the context of recapitalizing of private sector banks (PSBs -- I don't like the Media-Coinage, PSU Bank in the way, I have avoided using two terms: Technical Analysis and Penny Stock, in my writings) with enormous gaping holes in their balance sheets, post ballooning of their NPAs. 

On the flip side, Indian economy is also slowly limping back to normalcy, after the stupidities like Demonetization and a hurriedly implemented GST, rocking the nerves of the investing and trading communities. 

Experience with GST, a Consumption TAX (CT) has shown that products originating from informal and semi-formal sectors are hard to be taxed. Even in the formal sector, CT can be avoided by under-invoicing the sale receipt at the last leg of the value chain, sounding death-knell to those theorists, who had vouched GST as the ultimate device to block TAX-THEFT. That is why the tax rates under GST have been a story of one foot forward, two steps backward.

Indian monetary policy is like a bottle of tomato-ketchup, once gene starts to have effect, it is already too late to moderate it or wind it back. The Intellectual sub-current indicates that bank recapitalization is likely to release a huge quantum of money into the system. This money will be sloshing around, chasing finite resources and hey, the markets are likely to become more crazy in the coming days, before the RBI and other regulators slam the brakes hard.

My gut feeling is that Indian bourses are still not ripe enough to blow up in the near future - the momentum is likely to continue for at least another six months, before we can think of a major correction or perhaps a soft landing (mild crash) of sorts.

Having said this there is another aspect which needs a closer look: while the markets have roared parabolically-up, paradoxically defying the GDP figures and other negative clues, in technicolor and style; the INR-USD ratio, is working some hoodoo in the other rings of this psychedelic circus. But the TV financial shows still haven’t raised shrill alarm bells of dollar tanking in the past several months or the likelihood of interest rates creeping up in the bond markets.

In fact, this could be a crowning comic moment in human history when the world would be interested to buy bucket-loads of sovereign bonds backed by a falling currency. Meanwhile, the US Treasury’s partner-in-crime, the Federal Reserve, is getting ready to dump an additional $600 billion bonds in the market out of its over-stuffed balance sheet. Well let's stop ricocheting from hashtag to hashtag now and focus on other aspects of markets.

With this thought in mind, I would like to share a few things I gathered over the years:
#Sometimes investing can be incredibly simplified and profitable using common sense techniques. The reason that use of this technique works is that for some unexplained reasons there is a lack of it in the annals of stock market. As such, you can use common sense to somewhat predict/anticipate future stock market moves.

#Try to avoid investing through MUTUAL FUND route -- I have never liked the concept and these dangerous instruments perform mostly during a raging bull market. According to a report published in Financial Times, almost all US, global and EM funds have failed to beat their benchmark since 2006 or 99% of actively managed US equity funds underperformed.

So, unless you are a LAZY GUY or have no time to take a look on your investment profile on a regular basis, except your domain of work, always try to invest directly in stock market, albeit with the help of experts (if any). 

It is interesting to note that the total assets under management (AuM) of the world’s largest 500 managers grew to US$ 81.2 trillion in 2016, representing a rise of only 5.8% on the previous year, according to latest figures from Willis Towers Watson’s Global 500 research. Although the majority of total assets (78.4%) are still managed actively, its share has declined from 79.7% from end of last year as passive management continues to make inroads. 

In India, the mutual funds have added over Rs.6 trillion to their asset base in 2017 and the uptrend is likely to continue in the new year, helped by a spirited promotion campaign by the industry and post-demonetisation resurgence of financial investment products. The industry is looking at an increase of nearly 40% to the total asset under management (AUM) ......... after attaining a record level of Rs.23 trillion at November-end itself—up from Rs16.46 trillion at the end of December 2016.

In any case even if you are a die - hard Mutual Fund fan, always prefer open ended schemes, against closed ended ones. 

#Don't invest in more than 2-4 stocks at a time in spite of all the temptations from external sources; so that you can keep a constant track of them -- your portfolio should look sleek and elegant. If a stock is not performing and its sector has started to give negative signals, trim it out of the portfolio, even at a slight loss and ride on the sector which is in trend or will be in long term trend from here. Asset allocation and constant churning of portfolio is what will give the creams of return. Always book profits in the way, because Indian markets are immature and your small profit might soon evaporate to land you in losses. 

#Avoid too much trading in your account. Buy a scrip based on a story and keep holding it with a target in mind. Once the share reaches near the target, book profit and exit. Don't become too much greedy and hold a share for years and months, unless and until there are compelling reasons to stick on that formula. However, occasional try in BTST/STBT or Daily Jobbing is also fine to some extent. Authenticity of source based information should be checked  on regular basis.

#Search for turnaround stories across the financial mosaic, pivoted on company and sector specific outlooks.  Once found then do a bit of research and try to get source based information on the scrip. In the past I have mentioned a lot of turnaround stories in this blog including, Premier Explosives, Suzlon Ltd, etc the latest being 3i Infotech Ltd and the Banking sector. 

#Whatever be your age, always keep at least 30% of your investment in equities. Market crashes are generally not “manufactured” rather they are an emergent side effect of market dynamics. Therefore, to lose extraordinary money in equity market, calls for commensurately extraordinary events. In Bombay, it is said: Everyday 9 people lose their lives while commuting through local trains, considered life line of this metropolis. But does it stop people from using this instrument of communication? No, isn't?

Bull markets often piggyback on Fantasy or/and Euphoria and hence politically loaded, expositions carry little meaning during this period. Moreover, books have been written on timing markets and it's generally accepted that it cannot be done reliably. To get out before a crash then buy cheap would require you to predict three different moments accurately: 

(i) When to get in, 

(ii) When to get out, and then 

(ii) When to buy on the "cheap". 

Timing even one reliably requires luck or clairvoyance or miraculous financial acumen. Therefore, postulating entry and exit theories are really very tough, if not impossible.  

In India active management industry is adding value, as compared to other parts of the world,  where the markets get more institutionalized, i.e more ownership lies in the hands of the institutions. I think passive management will grow in the years ahead and gain market share but the absolute equity asset class allocation will also rise substantially. As regards returns from the asset class like equities, given current valuations and projected figures, expectations should be palliated; till there is a sizable tectonic shift in the macroeconomic parameters accompanied by more pro-corporate government policies.

Lastly, always prefer a full fledged brokerage house instead of budget brokers like Zerodha, who not only provides stock research reports but also have a good trading platform. Safe is a very strong word, hence your choice of brokers may have a direct fall out on many future investing coordinates.

In this information age the outlook of people, who saw equity as a purely speculative, volatile asset class, almost a form of legalized gambling is slowly changing. Statistically, equity still remains the best asset class for wealth creation over the long term. 

The risks inherent in equity can be mitigated by diversification,  finding an expert for guidance and cutting down on hubris and excessive urges. 

And even after several tries if you have failed in Equity market, then try investing in recession-proof Comic books.... 

All the best and good luck!!

WINNING STROKES

Today the scrip of Hindustan Zinc Ltd was recommended  around Rs.297-298, during the dying moments of the market. The stock zoomed to Rs.301 in the NSE. Buoyancy in the Zinc prices, will give an upward push to the stock price, going forward.

Among the recommended PSBs, the stock of Punjab National Bank Ltd today made an intraday high of Rs.197, before closing at Rs.180.90 on profit booking. Similarly, Dena Bank Ltd, which made an intraday high of Rs.27.85, also closed at Rs.26.60, after profit booking was suggested in the counter. Recent announcement by India's Finance Minister, of a Rs.2.11 trillion ($33.2 billion) bank recapitalisation package will give new life line to the PSBs. 

Today news appeared in the media that Bank NPAs eased by 0.4% from three months earlier to Rs.9.46 trillion at the end of September, signalling that banking reforms and the insolvency and bankruptcy code may be starting to show results. If you remember, I had already mentioned that in my earlier blog posts

The stock of Housing Development & Infrastructure Ltd. today closed flat at Rs.59.35, after making an intraday high of Rs.60.65 in the NSE. In the past 12 years (2006-2017) India has seen investments of USD 42 billion in the real estate sector, while in the next 10 years (2017-2026) it is expected to see inflows to the tune of USD 58 billion according to a report published in Moneycontrol.com. Moreover, the introduction of Real Estate Regulation and Development Act (RERA), which makes it mandatory for builders to register a property with the regulatory authority before marketing it, is expected to boost buyer's confidence. It is bad news for small builders in the unorganised sector. The big is expected to gain marketshare as the small vacate the market. Prices, going ahead, is therefore expected to firm up. As long as Rs.59, is not broken on the downside, the Bulls do not have to worry much.

The stock of 3i Infotech Ltd closed at Rs.6.80 in both the bourses. ORION ERP, an integrated, cost-effective and cloud-enabled industry solution for growing and mid-sized enterprises, from 3i Infotech Limited, a global information technology company, continues its growth trajectory and is delivering industry-beating performance. The company recently posted a strong overall 32% growth result in Q3FY18 from the ERP vertical, over the same quarter in FY17. The 9 month FY18 license revenues grew 90% over similar quarters in FY17. The regions that have contributed maximum to the growth in revenue for ORION ERP this quarter are APAC and Middle East. 

Backed by robust service support, ORION ERP is a globally trusted partner to more than 800 customers with over 1,000 installations and 50,000+ users across various verticals, and aims to be one of the prominent ERP solutions available globally. Built on future-ready technology stack, ORION ERP empowers organizations to optimize business processes and make informed decisions through anytime access to dashboards and analytics. Meanwhile, CRISIL Limited has upgraded 3I Infotech Ltd's credit rating from 'CRISIL D' to 'CRISIL BB/Stable' in respect of its bank loan facilities. The rating rationale is available on the website of CRISIL Limited. So, what to do with this scrip?

Market Pulse

A bout of volatility was witnessed as key benchmark indices trimmed losses in early afternoon trade. At 01.20 pm the Sensex was trading at 35,982.96 down 178.68 point or 0.49%, while the CNX Nifty was trading at 11,034.70 down 51.30 points or 0.46%.

Trading was volatile as traders roll over positions in the futures & options (F&O) segment from the near month January 2018 series to February 2018 series. The January 2018 derivatives contract expires today, 25 January 2018.

Key indices opened almost flat and declined as the session progressed. After hitting a fresh intraday low in mid-morning trade, key indices trimmed losses in early afternoon trade.

The Sensex rose 85.38 points, or 0.24% at the day's high of 36,247.02 in early trade. The index fell 144.16 points, or 0.40% at the day's low of 36,017.48 in mid-morning trade, its lowest intraday level since 23 January 2018. The Nifty rose 9.60 points, or 0.09% at the day's high of 11,095.60 in early trade. The index fell 38.40 points, or 0.35% at the day's low of 11,047.60 in mid-morning trade.

Among secondary barometers, the BSE Mid-Cap index was down 0.20%. The BSE Small-Cap index was down 0.11%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,417 shares fell and 1,171 shares rose. A total of 150 shares were unchanged.

IT shares were mixed. Oracle Financial Services Software (down 1.95%), HCL Technologies (down 1.76%), Infosys (down 1.55%) and Hexaware Technologies (down 1.26%), edged lower. Tech Mahindra (up 0.42%), Wipro (up 0.59%), Persistent Systems (up 0.68%), MindTree (up 0.85%) and MphasiS (up 3.30%), edged higher.

TCS was down 1.19%. The company said that the company and Mesosphere, the creators of DC/OS, the premier platform for building and running data-intensive, containerized applications announced a partnership aimed at helping customers utilize data services and cloud platforms more efficiently. The announcement was made after market hours yesterday, 24 January 2018.

Pharmaceutical shares were mixed. Divi's Laboratories (up 1.65%), Glenmark Pharmaceuticals (up 0.54%), Piramal Enterprises (up 0.46%), Cipla (up 0.39%), GlaxoSmithKline Pharmaceuticals (up 0.36%), Lupin (up 0.29%), Sun Pharmaceutical Industries (up 0.24%), Cadila Healthcare (up 0.16%) and Strides Shasun (up 0.07%), edged higher. Dr Reddy's Laboratories (down 0.32%), Alkem Laboratories (down 0.42%), Wockhardt (down 0.5%), Aurobindo Pharma (down 0.65%) and IPCA Laboratories (down 1.08%), edged lower.

Orient Green Power Company advanced 1.86% after the company reported consolidated net loss of Rs 51.08 crore in Q3 December 2017, lower than net loss of Rs 69.66 crore in Q3 December 2016. Consolidated net sales rose 1.4% to Rs 56.09 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 24 January 2018.

Overseas, Asian shares declined after stocks wobbled on Wall Street. US stocks closed mixed on Wednesday as markets focused on a mix of corporate earnings, trade war concerns and the broad decline in the US currency. The Dow Jones Industrial Average rose 0.16%. The S&P 500 index shed 1.59 points, while the Nasdaq Composite Index fell 0.6%.

Today's Calls: 

#Those who are holding the shares of Housing Development & Infrastructure Ltd (Rs.59.25), can continue to add to lower the average price for short term targets of Rs.62-65-69. The scrip could give good returns in the short term, as today is F&O expiry. The new F&O series could bring in joy for the shareholders, as there is nothing fundamentally wrong in the company. 

#Buy the shares of Hindustan Zinc Ltd at around Rs.297-298, for short term targets of Rs.322. Keep a SL of Rs.291. The management of the company recently said linkage coal has begun to land and it expects to meet around 20% of its requirement from this source, and then increase this level further in FY19.
Moreover, according to a report in Live Mint, on 23 January, '17: In the fourth quarter, refined zinc and lead output are projected to be nearly the same as the third quarter. That means realizations and costs will determine which way the profitability scale will tilt. While realizations are expected to hold steady, the expectation is that costs will trend lower due to higher coal linkage availability. If this happens, it may bring some solace to investors, as zinc prices continues to remain firm in the international markets. The company continues to invest in its expansion projects with capacity expected to increase annually in the next couple of years. If zinc prices hold up, then it would further add to the top and bottomlines of the company. 

#Buy the shares of NDTV Ltd at around Rs.46, T: Rs.51,SL: Rs.42. There are lot of restructuring going on in the company. 

#The short term traders who are holding the shares of Central Bank Ltd (Rs.74.70), should exit on rise - the share is not performing according to the expectations. However, long term investors can hold with a SL at Rs.71, for Rs.83 and Rs.89.

#Those who are holding the shares of Dena Bank Ltd can book full profits at around Rs.27 (intraday high Rs.27.70) and wait for the scrip to close above Rs.27.50.

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