WINNING STROKES: THINK DIFFERENT:
Kohinoor Broadcasting Corporation Ltd also hit the buyer freeze in the opening trade. The company is coming up with power projects which are mentioned in their website.
Allied Digital Services Ltd which was asked to be accumulated around Rs.40 again today, closed exactly at this price. The stock fell basically after the CLSA came out with negative picture on the IT sector as a whole. However, the scrip is expected to give a decent returns going forward, as the current price is absurd.
Reliance Media Services Ltd is coming up with a rights issue which is sure shot tip for the rise in the share prices of the scrip in future and hence always accumulate the scrip on all declines and sell just before the close of the rights issue. It is the fastest growing company film and entertainment services company in India. The company in a press release said that though in the Q4FY11, it came out with a loss, but that is not indicative of the future performance of the company. The company said, its March, 2011 quarter was excessively weak on account of ICC World Cup. During the quarter the company had also to bore significant interest and depreciation cost, for large capex projects commissioned across business in FY11. The company said, that these investments are expected to generate substantial returns in FY12--so here lies the cream. The company's recently created infrastructure includes:
(i) World-wide Big Cinema screen count of 500 plus screens as of April, 2011, with the addition of 60 screens in FY12.
(i) World-wide Big Cinema screen count of 500 plus screens as of April, 2011, with the addition of 60 screens in FY12.
For more on Reliance Mediworks Ltd one can visit this URL: http://www.bseindia.com/xml-data/corpfiling/AttachHis/Reliance_MediaWorks_Ltd_280511.pdf
Today some very good (positive) news came from the overseas, which are given below with brief analysis:
(i) The International Energy Agency, which includes the U.S. and 27 other countries, said Thursday it would release 60 million barrels of oil from emergency stocks in an effort to ease the strain that high oil prices have put on the global economic recovery. This marks only the third time in its history that the Paris-based agency has released oil onto the markets. Half of the 60 million barrels will come from the U.S.'s emergency stocks. The oil will be released over the next 30 days.Now this is a wonderful news for India, as it fights inflation. I had mentioned earlier that the crude oil could fall below the $90 per barrel mark and this is expected to happen in the coming days. Moreover, it would help, downstream oil companies and also, the companies who use crude oil derivatives, like Glory Polyfilms Ltd, Essel Propack Ltd, Kissan Mouldings Ltd, etc. So we can again see some non-stop buyer freezes in the counter of Glory Polyfilms Ltd in the coming days. Those who have not sold could be enjoying, the fun and frolic.
(ii) Separate data from the US, showed sales of new homes fell 2.1 percent in May, but inventories hit a record low and the median sales price rose slightly. This is quite positive for the US markets as the differential in the new home sales is very low, with record low inventories.
(iii) Bernanke on Wednesday cut the forecast for U.S. economic growth and offering no hint of further monetary support. This implies that the FIIs who were withdrawing money from the emerging markets like India to invest in Wall Street, could again start flying in the Indian bourses, which is a great news for the Indian investors. So in the coming days we could see money being pulled out from the US markets to be invested in the Indian markets.
(iv) Further China's factory sector barely expanded in June even as price pressures eased, reflecting the impact of monetary policy tightening and sluggish global demand. So if the Indian economy beats the Chinese growth then a large chunk of the FIIs money could come flying to India instead of going to the former.
Having said, all this, my only one concern is the "Stupid Behaviour of the RBI bosses and the Finance Ministry", by going in for constant rate hikes. I do not know what can be achieved by artificially slowing down manufacturing sector, leading to the shortage of employment and other chronic problems. Moreover, if the rates are hiked then the prices of produce also gets increased and increases demand side pressure as the capex of factories gets haulted---does these morons in the RBI not think all these complications before drumming up the interest rates in every meeting?? Any slowing down of the job opportunities could create more headaches for the government than managing economy. Then their advertisement about democracy on Television Channels might not hold water--a civil war might take place in India, already angered by a series of scams and mismanagement of the Indian economy by the RBI and the FMO. In all probability I see the markets moving up, with occasional bouts of selling--but in a narrow range. What will happen is that the large caps or the Sensex/Nifty will trade in a narrow range while most of the actions would be concentrated in the small and mid cap counters, many of whom are beaten down heavily inspite of the deadly fundamentals.
Indian equity indices continue its firm trade and are trading in a positive zone unperturbed by the weekly food inflation numbers that were released by the commerce ministry. Market participants were seen piling up the positions in FMCG, Oil & Gas and Consumer Durables while, selling was witnessed among Realty, Health Care and Metal. As per the report, after the gap of one year the government will raise diesel, cooking gas and kerosene prices next month as cash-strapped state firms say it will be forced to cut fuel supplies, starting with cooking gas after their borrowings have risen alarmingly. The empowered group of ministers (EGoM), which is authorized to raise fuel prices, is expected to meet early next month to decide partial price hike on individual products against companies' demand to increase diesel rates by Rs 15.44 per litre, kerosene by Rs 27.47 per litre and cooking gas by Rs 381 per cylinder. Majority of the Asian markets were trading in red barring Shanghai Composite, Jakarta Composite and Straits Times while, the European markets were trading in red on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,300 and 17,700 levels, respectively. The market breadth on the BSE was in favor of declines in the ratio of 973:1680 while, 128 scrips remained unchanged.
Moreover, Reliance Industries (RIL) has made a natural gas discovery in the Krishna Godavari (KG) basin off the east coast of India. The company has made discovery in the very first well drilled on its D9 block. Reliance holds 90% interest and is the operator of the deep-sea block KG-DWN-2001/1 (D9) while London-listed Hardy holds 10% interest in the block. In 2003, under New Exploration Licensing Policy (NELP), Reliance-Hardy combine had won the 11,605 square kilometer (equivalent to 48 North Sea blocks). Also, Omkar Speciality Chemicals has received FDA Licence for its Unit No. III for manufacture of Selenium Sulphide (USP) which is the key ingredient for production of anti-dandruff shampoo. Vivimed Labs and International Finance Corporation (IFC), a World Bank Group has entered into an FCCB subscription agreement wherein IFC will subscribe to the company's FCCB's, on private placement basis to the tune of $7.5 million. SMS Pharmaceuticals has received a closure order from Andhra Pradesh Pollution Control Board (APPCB) for its Unit -1 located at Kazipalli industrial area Medak District, Andhra Pradesh for non compliance of certain conditions.
The BSE Sensex is currently trading at 17,718.93 up by 168.30 points or 0.96% after trading as high as 17,754.55 and as low as 17,482.21. There were 24 stocks advancing against 6 declines on the index.
The broader indices were trading on a negative note; the BSE Mid cap and Small cap indices fell by 0.32% and 0.63% respectively.
On the BSE sectoral space, FMCG up 1.83%, Oil & Gas up 1.81%, Consumer Durables up 1.30%, IT up 0.99% and Teck up 0.82% were the major gainers, while Realty down 1.01%, Health Care down 0.78% and Metal down 0.28% were the only losers on the index.
The top gainers on the Sensex were RCom up by 3.19%, ITC up by 2.97%, RIL up by 2.68%, ONGC up 1.84% and HUL up 1.75%. On the flip side, Cipla down by 1.89%, Maruti Suzuki down by 1.39%, BHEL down by 0.92%, Hindalco down by 0.66% and HDFC down by 0.55% were the top losers on the index.
Meanwhile, the food inflation in the Indian economy is still hovering at the 9% benchmark, which is a great concern for the Indian government. The latest rise is seen as a challenge for the government, which has been battling high rate of price rise across all segments for the past few months. Food inflation, as measured by the Wholesale Price Index (WPI), for week ended June 11 has reached to 9.13% highest in the last two and half month due to increase in the prices of fish-marine, milk, tea, egg and poultry chicken. From the second half of the May, food inflation is stated to move up to the bench mark of 10%.
According to the data released by the ministry of commerce and industry, food price index rose to two month high of 9.13% for week ended June 11, from an annual rise of 8.96% recorded in the previous week. However, the index for the 'Food Article' group rose by 1.5% to 191.3 (Provisional) from 188.4 (Provisional) for the last week because of increase in prices of fish-marine (5%), milk (4%), tea and poultry chicken (3% each), jowar and egg (2% each) and moong, fish-inland and fruits and vegetables (1% each). However, the prices of bajra and urad (5% each) and ragi, barley, condiments and spices and pork (1% each) declined.
The Index for 'Non-Food Article' group declined by 1.5% to 183.9 (Provisional) from 183.9 (provisional) for the previous week due to lower prices of raw cotton (9%), mesta and sunflower (4% each), raw jute (3%) and castor seed, linseed and fodder (1% each). However, the prices of raw silk (7%), groundnut seed (5%), gaur seed (2%) and cotton seed and copra (1% each) moved up. Therefore, the broader 'Index for Primary Article' which has weight of 20.12% in the Wholesale Price Index (WPI) increased by 0.8% to 198.1 (provisional) from 196.6 (provisional) for the last week. The annual rate of inflation, calculated on point to point basis stood at 12.62% (Provisional) for week ended June 11 as compared to 12.86 for the week ended June 04.
The Index for 'Fuel and Power' which has weight of 14.91% in WPI remained unchanged from its last week's level of 159.9 (provisional) and annual rate of inflation for fuel and power, calculated on point to point basis, has also remained same at 12.84% from previous week. This two and half month surge in food inflation is in the line of the central banks expectations that the headline inflation would be mostly driven by the commodity prices in the next few months and the rates of price rise in food items would moderate. The recent forecast of monsoon to be below the normal level also has increased the temperature in the economy.
The S&P CNX Nifty is currently trading at 5,316.85, higher by 38.55 points or 0.73% after trading as high as 5,330.60 and as low as 5,252.25. There were 30 stocks advancing against 20 declines on the index.
The top gainers of the Nifty were ITC up by 3.16%, RCom up by 2.96%, Reliance up by 2.56%, Reliance Capital up by 2.33% and HUL up by 2.12%. On the flip side, Cipla down by 1.84%, Ranbaxy down by 1.76%, Maruti down by 1.73%, Sesa Goa down by 1.64% and IDFC down 1.52% were the major losers on the index.
Asian markets are exhibiting mixed trends as Shanghai Composite surged 1.44%, Jakarta Composite gained 0.05% and Straits Times amassed 0.09%. On the flipside, Hang Seng down 0.46%, KLSE Composite inched down 0.27%, Nikkei 225 eased 0.34%, Seoul Composite declined 0.39% and Taiwan Weighted decreased 0.62%.
The European markets are trading in red, with France's CAC 40 eased 0.89%, Germany's DAX shed 0.72% and London's FTSE fell 0.59%.
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