Market Mantra:Crude goes further down to $60.31 a barrel:Yesterday Mid-cap and Small-cap indices closed at 4778.4 up 39.45 points and 6514.7 up 50.75 points respectively:
Today the Indices are expected to remain Range Bound showing sideways movement. The indices for next few days might exhibit this pattern which is normal due "Deewali" and "EID" hangovers.The Indices will open in the Green and close in the Green, with some gains. Almost all the sectors looks positive. But the Mid, Small and Mircro-caps should steal most of the show in the bourses. This space still holds the maximum promise to the shareholders.
Wall Street extended its rally on Thursday as robust earnings at Exxon Mobil Corp. and Aetna Inc. helped ground investors as they tried to reconcile divergent economic data. The US markets was initially inspired by Commerce Department durable goods data that indicated capital spending jumped by the most in more than six years. But stocks then fell on a report from the department that new home prices plunged at its steepest pace since 1970.
Investors were particularly wary after the Federal Reserve said Wednesday it remains concerned about inflation even as the economy is slowing. "Things on the horizon are becoming less and less visible," said Hugh Moore, a partner with portfolio manager Guerite Advisors.
Further direction about the economy will come with Friday's release of gross domestic product estimates.
The Dow rose 28.98, or 0.24 percent, to 12,163.66. The Dow also reached a new trading high Thursday, 12,167.02.
Broader stock indicators also advanced. The Standard & Poor's 500 index rose 6.86, or 0.50 percent, to 1,389.08. So far this earnings season, the index's components on average have reported double-digit earnings gains for the 18th consecutive quarter.
The Nasdaq composite index added 22.51, or 0.96 percent, to 2,379.10.
Most of the India ADR's closed in the green yesterday.
Today's Recommendations:
Buy or Hold:
1.DCM Shriram Consolidated Ltd
2. Stovec Industries Ltd.
3. Coral Finance & Housing Ltd
4. Gravity Ltd
5. Chandra Prabhu International Ltd
Stovec Industrires Ltd:
CMP--RS.115.95
BOOK VALUE--RS.108.8
PERFORMANCE--MARKET OUTPERFORMER.
Stovec Industries was formed in 1975 by the A.T.E. Group in partnership with renowned Stork Group of the Netherlands to cater to the ever-growing needs of textile printing and graphic printing industries. Over the past 31 years Stovec has maintained technological and market leadership for the supply of rotary screen printing machines and rotary screens for the textile printing industry, and has also established itself in the market for pre-sensitized offset plates and all related consumables for the graphic printing industry. Stovec's top quality screens are a result of Stovec's mastery in electroforming-the heart of the screen making process. The screens-Standard, Penta and Special effect - are available in a wide range of repeat lengths (upto 4 meters) and mesh sizes to suit the printers' needs. Rotary printing machines and loop steamers manufactured by Stovec are suitable for all types of fabrics-from most delicate georgette and chiffon saris to knitted fabrics including hosiery and terry towels. Pre-sensitized offset plates manufactured by Stovec are known for their excellent dot-for-dot reproduction and are certified under ISO 9000.They offer dot-for-dot high resolution, printout and contrast, low paper wastage and perfect ink water balance. Stovec's manufacturing plant, based in Ahmedabad, is the only one in India to have an uninterrupted mode of operation at constant speed. Stovec is proud to have established the first effluent treatment plant in the state of Gujarat, India. It has continued to be environment friendly in its operations. A countrywide distribution network of A.T.E. Marketing Private Limited manned by technical personnel assures you of superior customer support and prompt service. Moreover, a world-class training center at the plant enables customers to get hands-on experience and training on the entire range of Stovec products. Highlights: 1)all divisions are ISO certified 2)60% market share for the textile screens in India 3)nickel chrome plated sugar screens offer high productivity and minimum breakage of sugar crystals 4)rotary screen printing machine is suitable for all fabric types-from delicate georgette & chiffon saris to knitted fabrics and terry towels 5)PS plates offer high printout and contrast, low paper wastage, perfect ink water balance and dot-for-dot reproduction. The company came out with excellent results on the September, 2006 quarter, 2006. The Net Profit jumped to Rs.72.1 lakh in place of Rs.14.5 lakh in the same quarter previous year giving an EPS of Rs.3.45 against Rs.0.69 in the same period previous year. It has sold the assets of PS Patel business ealier to streamline its operations. It had recommended a Dividend of 25% for the financial year ended March 31, 2006. This is an excellent company in the textile machinery space which is growing at a rapid pace after the Quota restrictions were removed in 2005. SO BUY STOVEC INDUSTRIES LTD AT RS.115.95 FOR A TARGET OF OVER RS.200.
More in the folllowing mails......
Best wishes,
Suman Mukherjee
India.
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