SumanSpeaks: The Information Super Highway

Today's Afternoon Call->30th September, 2006: Buy:(Updated) 1. ABC India Ltd. CMP--->Rs.39 This is a transport company, which will benefit from the fall in the prices of petroleum products viz: Petrol and Diesel. The company came out with decent set of number for FY-05-06 and for the September, 2006 quarter. The most important part is that these transport companies will benefit immensely, from the Retail Boom which is expected to take place soom. Transport companies will give the logistic feedback to Multinational Comapanies and also to the Mom & Pop stores. I have placed a target of Rs.80--Rs.120 with the current scenario of fall in crude prices. If the Crude price falls further then we can see its price cross Rs.150.. 2. Roto Pumps Ltd. This is a pump company which has completed restructuring exercise. The company should do well in view of the Agriculture and Infrastructure Doing well. The 9.2% GDP growth should see help pump companies register mammoth growth, bo...

U.S. Stocks Have Biggest Gain in Three Weeks on GDP, Inflation Nov. 29,2006 The U.S. stocks had their biggest gain in three weeks after the economy expanded at a faster rate last quarter than first reported without stoking inflation. Exxon Mobil Corp., the world's largest oil company, and other energy producers advanced as crude rose to a two-month high, lifting the Standard & Poor's 500 Energy Index to a record. Tiffany & Co., the second-biggest luxury jeweler, jumped after raising its full-year earnings forecast on demand from holiday shoppers. AT&T Inc. led telephone companies higher as Fitch Ratings said they will gain Internet subscribers. The S&P 500 climbed 12.76, or 0.9 percent, to 1399.48. The Dow Jones Industrial Average added 90.28, or 0.7 percent, to 12,226.73. For both measures, it was the largest rally since Nov. 6. The Nasdaq Composite Index advanced 19.62, or 0.8 percent, at 2432.23. ``Inflation doesn't seem to be a problem,'' said ...

The Flatish-Indices Closes in the Green after a Wild Start: Focus shifts to Small-cap, Mid-cap & Micro-cap Counters:Massive rally in Small & Micro-cap Counters: Oil is hovering around $62/Barrel:Buy Samkrg Piston & Rings Ltd, Soma Textile Industries Ltd & Roto Pumps Ltd on all declines: Small-cap, micro and mid-cap stocks came to the fore today as investors rotated money from frontline shares. The valuations of small-cap, Micro and mid-cap shares have turned attractive vis-a-vis frontline stocks following a surge some of the frontline stocks in the past few months. BSE Small-Cap Index rose 103.62 points or 1.5% today to settle at 6,635.01 and BSE Mid-Cap Index advanced 76.64 points or 1.3% to 5,727.85. In comparison, Sensex rose a muted 14.78 points or 0.1% to settle at 13,616.73. The S&P CNX Nifty rose 6.45 points or 0.16% to settle at 3,928.20. Volatility was high. After surging over 100 points at the onset of trading tracking firm Asian markets, Sensex gradual...

Today's afternoon Calls: 1. Buy Samkrg Piston and Rings Ltd at Rs.86 . The company came out with very good results in the September, 2006. This result has been overlooked by the market. 2. Buy Soma Textile & Industries Ltd The company came out with good results in the September, 2006 quarter. The company will benefit from the restructuring exercise it carried last year and till the first part of this year. 3. Buy Roto Pumps Ltd. The company has completed the restructuring exercise and is on a move. Good price to pick the stock from the market. Should move up to Rs.80---Rs.90 in 8 month--18 months time. Pumps are necessary for infrastrucuture development and also in the agriculture sector. Both the sectors are given special impetus by the government. ALways have a long term view....PBA Infrastructure Ltd and Haldyn Glass is doing well today. More in the following mails.... Best wishes, Suman Mukherjee India. www.pkblogs.com/sumanspeaks

Sensex slips 1.25 % on the back of Weak Global Cues & F & O Expiry on this Thursday: The much needed Correction before 14, 000 seems to be over as markets needed some plea to go down: F & O Volumes above Rs.40,000 Cr:Software Stocks could stage a comeback tomorrow as they are more or less insulated from the global Crude Price and if the Dollar Becomes strong again:Bernanke Sees Growth Rebounding:``The US Economic growth will be modestly below trend in the near term,'' and over the coming year will ``return to a rate that is roughly in line with the growth rate of the economy's underlying productive capacity": Policy makers are counting on a slowing US economic expansion to bring down inflation, which remains above the tolerance range identified by officials including Bernanke. His comments reflect the consensus of the policy-setting Federal Open Market Committee, which views inflation as a greater risk than a prolonged economic slowdown. Buy the Highly Und...

Markets: Where to from here? Whenever, as equity analyst, we meet an individual (forget whether he is/was a friend), the first question we are faced with is what is your view on the market? Will it touch 14,000 this time around? Yes, it is our job to analyze market and let investors know what could happen based on analytical reasons. But is it possible that every time we should have view? Some times, it so happens that even the best in the industry 'just' do not have a view on the market! We know of many 'experts' who are totally surprised at the way the Indian stock markets have gained in the last three years and even astonished at the kind of bounce back in the last six months. It is better to say 'no view' as compared to saying 'the days of equity broking in India are over' in 2003 (this was by the head of a reputed domestic brokerage house). Some 'experts' are even smarter! Some 'market bites' that we have come across over a period o...

FMCG: Volumes driven: From shampoos to skin creams, they're flying off the shop-shelves. Fast moving consumer goods (FMCG) firms had been doing fairly good business in the last few quarters. The trend continued in 2QFY07 too. A combination of increasing incomes, improved marketing and innovation and better price-value equation led to the strong performance of the top tier FMCG companies. While the topline recorded strong revenue growth on the back of higher volumes, the margins declined, though marginally, due to higher input costs. In this context, let us briefly understand the performance of the top 5 companies (HLL, ITC, Nestle, Britannia and Dabur) as a whole during the September quarter. Volume driven: Volume growth has been the front-runner for the 20% YoY growth in the topline for the combined entity. While ITC was a star performer showing a revenue growth of 32 %YoY, HLL managed just under 12% YoY for continuing businesses, while Dabur turned in a top line growth of 2...

Economic reforms: Rear view: The inevitability of economic reforms cannot be undermined by even the most powerful economies in the world. For a developing country like ours, it acts as a stimulant to counter stagnation and align with the global super powers. Be it a veto power at the WTO, bilateral trade or nuclear deal - it all boils down to a country's willingness to adopt economic reforms. In India, the words 'economic reform' had very little plausible meaning until 1991, when an economic insurgency (a threat of sovereign default) forced the Narsimha Rao government to pioneer the much-debated 'economic liberalisation' that instigated India's reform process. Since then, we have come a long way in the past one-and-a half decades, with India now being pegged as the second most powerful BRIC nation after China. Macroeconomic reforms: Until the 1980s, the economy had become over controlled and rigid, consequently making entrepreneurship heavily constrained. The...

Pharma: Finding the right pill: If one were to compare pharma stocks with stocks from other sectors, the former have not exactly been the cynosure of investors eye in the past year. This can be attributed to the increasingly tough conditions in global generics market due to rise in the level of competition and severe price erosion. Besides, the domestic market has not been spared from competition either, as can be evinced from the fragmented nature of the industry. Having said that, the pharmaceutical industry is dynamic in the sense that companies need to constantly innovate and employ new strategies if they want to withstand competition and come out on the top. Thus, what do investors need to look at while investing in pharma stocks? Here are a few key questions, which we believe investors need to consider while investing in this sector. Domestic market: The domestic market is highly competitive with both Indian and MNC companies vying for a majority market share. Three main fac...

Profit Booking emerged in the pivotals in the late hours: Mid caps Close at 5053.25 up 12.30 points Small caps close at 6523.03 up 42.87 points; Crude is trading at 59.93:The much expected rally has started in the Mid, Small and Micro-cap counters: The market, which was in excellent form during the first-half of trading, eased in the second as investors began booking profits at the higher level. However, it succeeded in retaining the 13,700 level. The BSE 30-shares Sensex finished with a modest 22.50-point gain, at 13,703.33. It had moved in the 13,767.85 - 13,665.52 range, for the day. The S&P CNX Nifty settled 5.40 points higher, at 3,950.85. The total turnover on BSE amounted to Rs 5,213 crore, boosted by four block deals of 15.30 lakh shares each, executed in HDFC in opening trade at an average Rs 1,662 per share. It was the top traded counter on BSE, with a total turnover of Rs 1, 021.86 crore. The deals accounted for 2.4% of HDFC's equity. The stock lost 0.25% to Rs 1...

Profit Booking emerged in the pivotals in the late hours: Mid caps Close at 5053.25 up 12.30 points Small caps close at 6523.03 up 42.87 points; Crude is trading at 59.93:The much expected rally has started in the Mid, Small and Micro-cap counters: The market, which was in excellent form during the first-half of trading, eased in the second as investors began booking profits at the higher level. However, it succeeded in retaining the 13,700 level. The BSE 30-shares Sensex finished with a modest 22.50-point gain, at 13,703.33. It had moved in the 13,767.85 - 13,665.52 range, for the day. The S&P CNX Nifty settled 5.40 points higher, at 3,950.85. The total turnover on BSE amounted to Rs 5,213 crore, boosted by four block deals of 15.30 lakh shares each, executed in HDFC in opening trade at an average Rs 1,662 per share. It was the top traded counter on BSE, with a total turnover of Rs 1, 021.86 crore. The deals accounted for 2.4% of HDFC's equity. The stock lost 0.25% to Rs 1...

Today's Call: The markets are on a "Great Momentum Horse" and its seems it will continue as long as FIIs, Mutual Funds and Retail investors pump money into the bourses. The investors can think of entering Indo Rama Synthetics India Ltd at the Current price of Rs.53.5( BSEL Code--->500207). The company is into the making of Synthetic Yarn, whose raw material is a petrochemical. Since the crude prices are coming down and is expected to come down futher, it might trigger a crash in Petrochemical Prices in the near future. In this backdrop I would expect Indo Rama to garner good profit from the existing capacities and also due to capaicity addition which is due to take place from the next month. It is to be noted that the Company is in the process of doubling its Polyester capacity by putting up additional capacity of 3,00,000 tonnes per annum at its plant at Butibori. The company has incurred an amount of Rs 7850 million on this project till September 30, 2006. Trial p...

Sensex slides after testing the all time high:Mid and Small Cap indices close in the Green: The rally has started to become broad based: Crude Still Trading below $60/barrel: Sensex ended slightly lower today amid mixed trend in various constituents of the barometer index. The market-breadth weakened in the latter part of the trading session after being positive in the first half. For 1,324 shares that declined on BSE, 1,219 rose. As many as 68 shares were unchanged. Losers outpaced gainers by a ratio of 1.08:1. At about 13:31 IST, the advance-decline ratio measured 1.03:1. Sensex closed 25.70 points (0.19%) lower, at 13,680.83. The S&P CNX Nifty shed 9.30 points or 0.24% to 3,945.45. After a bout of early volatility, the Sensex had turned range-bound during mid-morning and early-afternoon trade. Volatility reared its head again in late-trading. The bellwether index had surged to a life high of 13,790.82 in early trade. The BSE clocked a turnover of Rs 5,531.48 crore, boosted by ...