Market Pulse

16-Mar-18: Fresh selling in index pivotals pulled the key benchmark indices to intraday low in early afternoon trade.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 276.96 points or 0.82% at 33,408.58. The Nifty 50 index was down 87.50 points or 0.84% at 10,272.65. Index heavyweights Reliance Industries (RIL), HDFC and ITC dropped. Metal and mining stocks declined.

Trading for the day began on a dull note as the key benchmark indices edged lower in early trade on negative Asian stocks. Stocks extended fall in morning trade. Key benchmark indices hovered near day's low in mid-morning trade.

The S&P BSE Mid-Cap index was down 0.27%. The S&P BSE Small-Cap index was down 0.13%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade. On the BSE, 1,398 shares declined and 1,053 shares rose. A total of 142 shares were unchanged. Breadth was strong in early trade.

Tata Motors (down 2.56%), ONGC (down 2.18%) and Reliance Industries (down 1.49%) edged lower from the Sensex pack.

L&T fell 0.39%. The Railways Strategic Business Unit of L&T Construction's Transportation Infrastructure Business has signed a contract worth Rs 2864 crore with the Dedicated Freight Corridor Corporation of India (DFCCIL). The scope of work includes construction of single railway track including yards, 75 major & 588 minor bridges, 1 rail over bridge modification, 4 rail flyovers, 21 stations along with construction of all associated works. The announcement was made during market hours today, 16 March 2018.

Drug major Dr Reddy's Laboratories (DRL) fell 0.06%. DRL during market hours today, 16 March 2018 said that the company has launched levocetirizine dihydrochloride tablets USP, 5 mg, an over-the-counter therapeutic equivalent generic version of Xyzal allergy 24HR tablets, in the US market as approved by the US Food and Drug Administration (USFDA).

Levocetirizine dihydrochloride tablets are used for 24-hour relief of allergy symptoms such as watery eyes, runny nose, itching eyes/nose and sneezing. According to IRI sales data, Xyzal allergy tablets had sales of about $71 million in the US market for the 12-month period ended January 2018.

Metal and mining stocks declined. Vedanta (down 1.01%), JSW Steel (down 1.34%), Tata Steel (down 2.33%), Steel Authority of India (Sail) (down 1.86%), National Aluminium Company (down 1.52%), Hindustan Zinc (down 0.69%), Jindal Steel & Power (down 1.8%), Hindalco Industries (down 0.69%), NMDC (down 0.2%) and Hindustan Copper (down 2.02%) edged lower.

Copper edged higher in the global commodities market. High Grade Copper for May 2018 delivery was currently up 0.42% at $3.1405 per pound on the COMEX.

Neuland Laboratories rose 4.34% to Rs 732.50 after a domestic brokerage initiated coverage on the stock with a 'buy' rating and target price of Rs 1,065. The brokerage said in a report that Neuland Laboratories is likely to report a strong recovery in the next fiscal. It expects 19% compounded growth rate in revenue and 800 basis point margin expansion and seven times earnings over the fiscal 2018-2020, it added.

Indian Hotels Company was down 1.05% to Rs 131.60 after the company's promoters exchanged shares via bulk deals yesterday, 15 March 2018. Indian Hotels Company (IHCL) witnessed promoter holding rejig through open market transactions on 15 March 2018 on the BSE at an average price of Rs 130.40 per share. Sir Ratan Tata Trust sold 1.10 crore shares. Sir Dorabji Tata Trust offloaded 5.02 crore shares. Lady Tata Memorial Trust disposed of 1.77 crore shares. Tata Sons purchased 7.89 crore shares. Sir Ratan Tata Trust held 0.93%, Sir Dorabji Tata Trust 4.22%, Lady Tata Memorial Trust 1.49% and Tata Sons controlled 29.79% stake end December 2017.

Meanwhile, India's trade deficit for February 2018 was estimated at $11,979.21 million, 25.8% higher than the $9,521.73-million deficit reported during February 2017, government data released after market hours yesterday, 15 March 2018 showed. Exports during February 2018 stood at $25,834.36 million compared to $24,726.71 million during February 2017. Imports during February 2018 were pegged at $37,813.57 million, compared to $34,248.44 million in February 2017.

On the political front, Andhra Pradesh's Telugu Desam Party (TDP) reportedly pulled out of its alliance with the BJP-led NDA at the Centre. The N Chandrababu Naidu-led TDP, as well as other local parties, expressed their discontent over Narendra Modi led Union govt not giving special status to Andhra Pradesh.

Overseas, most Asian stocks fell as weak volumes in the US session overnight gave little impetus for traders ahead of next week's Federal Reserve meeting. US stocks ended mixed yesterday, 15 March 2018 as industrial and tech gains were offset by losses in the consumer and energy sector.

Today's Calls:

#The stock of 63 Moons Technologies Ltd recommended around Rs.85 and Rs.94, today made an intraday high of Rs.114.5. Book some profits and wait for dips to enter. Keep a SL at Rs.103.

#Central Bank Ltd which was recommended around Rs.67 and Rs.75, has hit Rs.87, intraday. You can book some profits and hold the rest with a SL at Rs.82.

#PAIR TRADE: Buy BANK_NIFTY FUTURES at around 24770 and Simultaneously SELL NIFTY FUTURE at around 10331; ENTRY SPREAD: 2.3955; SL SPREAD: 2.38; Target SPREAD: 2.4012; Duration: 1-2 days.

#Yesterday a Buy was given to the Premium Members in the counter of Lanco Infratech Ltd at around Rs.1.15 for short term targets of Rs.1.45 and Rs.1.82. The stock hit the upper circuits today and is now trading at this level. The company is expected to turnaround in FY19. The scrip of Lanco Infratech Ltd is likely to hit the Buyer Freeze today. 

#Intraday SELL IOC Ltd at around Rs.189, SL: Rs.191.25, T: Rs.185.5-183. Book FULL PROFIT at around Rs.184.80.

#Intraday short GOLD at around Rs.30245, SL above Rs. 30310, T: Rs.30140. A lower CPI does not augur well  for Gold Bulls.

#The stock of MCX Ltd recommended at around Rs.780, made a high of Rs.831.95, intraday. Those who have still not booked profit, kindly do the same and wait for dips to re-enter.

#The stock of RattanIndia Power Ltd (erstwhile Indiabulls Power) today made an intraday high of Rs.6.10. Those who are holding the same can accumulate on market dips, keeping a SL at Rs.5.60.

#Today, I will be recommending another small cap company from the Real Estate space to the Premium Group members. If you can online transfer the subscription amount, then I will instantly give you the name of the scrip; which I feel will cover up the subscription cost. 

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

 From Indian economy to EU: Why 2012 will be better?

Luckily, most of us are not Mayans, who predicted the end of the world in 2012, and will survive the year. Unluckily, most of us are not Maya either, unable as we are to transcend harsh reality and live the illusion whereby the empowerment of one means empowerment of the many.
Yet, if for no reason other than that farce is superior to tragedy, 2012 is likely to be superior to the year that is drawing to a close.
The coming year will be more democratic than 2011. The Arab Spring always had the promise of giving way to a torrid summer. With the US completing its troop withdrawal from Iraq, the Egyptian army called upon to transfer power to civilians and Syria likely having to choose between cracking up or cracking down, 2012 is likely to see some climate change in the Arab lands for the better.
The US will not be able to sustain its double standards forever, either on Saudi or Israeli repression. But for proliferation of standards to end, we will have to wait for one more year -- 2012, after all, is an election year in the US when any kind of foreign policy change becomes too much of a risk for any party. In any case, the Jasmine revolution is more likely to bloom rather than wilt in the Arab lands.
Nepal is likely to consolidate the democratic advances made so far while the junta will, in all probability, further unconsolidate itself in Myanmar. In Pakistan, democracy will be forced to try and assert itself against the army's unconstitutional rule. Pak Generals would be tempted to celebrate the vastly enhanced legitimacy of their illegitimate children, the Taliban, but at the expense of bits of their land blowing up every now and then in uncontrollable schism spawned by religious zealotry that refuses to abide by its founding logic of instrumentality.
In India, popular enchantment with Anna Hazare is likely to ebb. The elections to the Uttar Pradesh assembly will be a decisive turning point, coming in early enough in the year to shape the rest of it decisively. The Congress is likely to win more assembly seats--not only more than it holds at present but also more than the number of assembly segments in the 22 parliamentary constituencies it holds in the state right now.
This would be treated as a gamechanger in national politics, reviving the Congress in the heartland, rejuvenating its leadership and reinvigorating the government at the Centre. Such multiple re-iterations carry the farcical risk of second comings in history, true; but then, that is better than tragedy at a national plane, you would agree.
On the economic front, too, things are likely to look up. The US economy would begin to grow at least at 2% a year, and that means adding $300 billion to global output, as much as China's contribution to global growth, growing at thrice the rate.
Eurozone problems will continue, weakening the Euro and making German produce even more competitive than it is now, boosting that country's exports, GDP and national willingness to pick up the tab of managing a crisis that has served it so well so far Japanese companies will continue to do well, even as the Japanese economy straggles on. Africa and Latin America will join East Asia's growth bandwagon Their collective momentum will help India as well
In India, the government is likely to use its post-UP political authority to crack the whip on a blustery Mamata, throw her a Bengal package, and notify 51% foreign investment in multi-brand retail. It could also decontrol diesel prices and persuade the RBI to start lowering interest rates.
The BJP will find it difficult to hold out on the Goods and Services Tax indefinitely, particularly with a sensible Sushil Modi, convinced of the benefits it would bring to the states and to the national economy, heading the empowered committee of state finance ministers. This would be a very major reform for the Indian economy.

Sebi would, with legal backing, license full-fledged operations of the MCX stock exchange, which would, in redoubled competition with the National Stock Exchange, kickstart a market for corporate debt, opening up one more channel for the inflow of foreign investment, deepening the market for foreign exchange.

The telecom ministry would get out of the shadow of the 2G scam, reframing whole swathes of spectrum for wireless data transmission, both because the economy needs the spectrum and because the new price at which now bountiful spectrum is allocated would show up the folly of CAG's notional loss estimate.
The petroleum ministry would allow BP to make vital investments needed to boost the flow of gas from the KG basin. Posco would have the good sense to negotiate directly with the protesting villagers in Orissa, instead of with middlemen, settle on a handsome compensation package. These two developments, along with FDI in retail, would boost direct investment inflow. A host of European companies would look to set up shop in India, to compensate for flagging growth in Europe.

Courtesy: The Economic Times 

Photo Courtesy: Sify Finance

Investors bet on base metals to rake in the moolah:

17th October, 2007:

NEW DELHI: Booming global metal markets have enthused the investors as they bet on base metals, hoping for a windfall, analysts on Wednesday said.

"We are expecting good returns from this sector," commodity brokerage firm Karvy Comtrade analyst Harish G said, adding most of the base metals, including copper, zinc and nickel have seen gains of more than 100 per cent in the past one-two years.

These metals have also seen increased participation of investors on the London Metal Exchange (LME) as well as on the Multi Commodity Exchange (MCX).

"It is a safe bet to invest in base metals as the market is moving firm. According to the current market movement, investors can easily earn good returns in copper, lead and nickel. However, one should be cautious while trading in zinc as prices seem to be a bit volatile," Religare Commodities analyst Suganda Sachdev said.

"The prices of nickel, zinc, lead and copper would remain high for some period. Demand from developing countries like China and India is driving the prices of base metals in the global market."

With China and India emerging as two of the fastest growing economies, the world is experiencing a massive build-out and modernisation of global infrastructure. China's demands for the base metals have been surging in view of the upcoming Olympics games for which it has undertaken to build massive physical infrastructure.

Even India's smelting capacity of refined copper has increased from a mere 0.5 per cent to 5 per cent of the global share. [From Internet]

WINNING STROKES: THINK DIFFERENT

Videocon Industries Ltd moves to Rs.184, which was also recommended on yesterday morning mail to the Paid Groups. 

On the other hand high beta stocks like Real Estates tanked as was suggested in the morning mail to the Paid Services. 

Meanwhile Allied Digital Services Ltd completed the Buy Back of its shares. The Average price at which the Shares were bought back is Rs.54.21 per Equity Share. The total amount utilized in the Buy back of Equity Shares is approximately Rs 3.24 Crores (which excludes brokerage and taxes), which Is 11.60% of Offer Size.

Key benchmark indices edged lower to reach their lowest closing level in more than a week as weakness in European stocks triggered profit booking on the domestic bourses after recent strong rally in share prices. The barometer index, BSE Sensex, and the 50-unit S&P CNX Nifty retracted after hitting 30-week highs at the onset of the trading session. The Sensex lost 283.36 points or 1.54%, off close to 380 points from the day's high and up about 50 points from the day's low. The market breadth was weak. Except BSE IT index, all the other 12 sectoral indices on BSE were in the red. BSE Small-Cap and Mid-Cap indices slumped more than 3% each.

Index heavyweight Reliance Industries (RIL) declined more than 1%. State Bank of India (SBI) tumbled nearly 8% on reports that the bank has committed around Rs 1200 crore to beleaguered Kingfisher Airlines. Shares of many other state-run banks slumped. Metal and realty stocks dropped.

The Sensex has jumped 951.70 points or 5.53% in February 2012 so far. The barometer index has surged 2,690.33 points or 17.4% in calendar 2012 so far. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 3009.39 points or 19.88%. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 1,665.89 points or 8.4%.

Coming back to today's trade, the market pared gains after hitting 30-week high at the onset of the trading session. The market reversed direction and slipped into the red to hit fresh intraday low in morning trade. The market trimmed losses after sliding to hit fresh intraday low in mid-morning trade. The market moved in a narrow range in the negative terrain in early afternoon trade. Key benchmark indices pared losses in afternoon trade. A bout of volatility was witnessed as key benchmark indices slumped to hit fresh intraday lows after moving into positive zone for a brief period in mid-afternoon trade. The market extended losses to hit fresh intraday low in late trade.

The market may remain volatile tomorrow, 23 February 2012, as traders roll over positions in futures & options (F&O) segment from the near-month February 2012 series to March 2012 series. The near-month February 2012 F&O contracts expire tomorrow, 23 February 2012.

The BSE Sensex lost 283.36 points or 1.54% to settle at 18,145.25, its lowest closing level since 14 February 2012. The index jumped 95.17 points at the day's high of 18,523.78 in early trade, its highest level since 27 July 2011. The index fell 332.80 points at the day's low of 18,095.81 in late trade.

The S&P CNX Nifty lost 101.80 points or 1.82% to settle at 5,505.35, its lowest closing level since 14 February 2012. Nifty hit a high of 5,629.95 in intraday trade, its highest level since 26 July 2011. The index hit a low of 5,491.35 in intraday trade.

The BSE Mid-Cap index tumbled 3.46% and the BSE Small-Cap index shed 3.24%. Both these indices underperformed the Sensex.

BSE clocked turnover of Rs 3839 crore, higher than Rs 3537.89 crore on Tuesday, 21 February 2012.

The market breadth, indicating the overall health of the market, was weak. On BSE, 2,208 shares fell and 769 shares rose. A total of 106 shares were unchanged. The market breadth was positive earlier in the day.

Among the 30-share Sensex pack, 24 fell while rest of them gained.

Index heavyweight Reliance Industries (RIL) fell 1.02% to Rs 833.20, off the day's high of Rs 855.70. The company said after market hours on Tuesday, 21 February 2012, that it has agreed to form a joint venture with Russian petrochemical company SIBUR to make 100,000 metric tonnes of butyl rubber a year in Jamnagar in Gujarat. The stock had surged nearly 3% ahead of the announcement on Tuesday, 21 February 2012. RIL will own a 74.9% stake in the joint venture, which will be named Reliance Sibur Elastomers. SIBUR will hold the remaining 25.1% stake. The joint venture will invest $450 million to build the facility, which is expected to be commissioned by the middle of 2014.

The JV will cater to the demand for synthetic rubber from the Indian automotive industry of over 75,000 tonnes per year, which is currently satisfied by imports. Investment in the JV is in line with RIL's vision of emerging as a significant player in the global synthetic rubber market, RIL said in a statement.

ONGC rose 0.19%, with the stock extending Tuesday's 3.7% jump. Last week, a ministerial panel approved auctioning a 5% stake in the state-run explorer.

PSU OMCs gained on recent reports the prices of auto and cooking fuels are likely to shoot up steeply in the first week of March 2012 once the assembly elections are over. BPCL, HPCL and Indian Oil Corporation rose by between 0.51% to 1.94%. The hike could be Rs 4 per litre for petrol, Rs 3 for diesel and Rs 50 per cylinder for cooking gas.

Oil marketing companies -- Indian Oil, Bharat Petroleum and Hindustan Petroleum -- are currently losing Rs 4 a litre on petrol, Rs 14 on diesel and Rs 390 on every cylinder of liquefied petroleum gas (LPG), report said. Oil marketing companies (PSU OMCs) incur under-recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.

NTPC fell 1.91%. NTPC is set to place orders for 11 supercritical boilers and an equal number of turbines of 660 MW each with the Supreme Court ruling that Ansaldo Caldaie Boilers India, a unit of Italian boiler maker Ansaldo Caldaie SpA, had failed to technically qualify for the bidding process. The bidding process for the supercritical boilers was delayed by more than a year after Ansaldo Caldaie moved the Delhi High Court following its disqualification on technical grounds. The high court had upheld Ansaldo's plea that it was wrongly disqualified, against which NTPC moved the Supreme Court.

NTPC had floated tender in October 2009 for the supply of 11 supercritical boilers -- nine for its own projects and two for Damodar Valley Corporation (DVC). These projects are envisaged for implementation under the 12th Five-year capacity addition programme. Besides Ansaldo, three bidders -- Bharat Heavy Electricals (Bhel), a consortium of Larsen & Toubro Power and Mitsubishi Heavy Industries and a JV between BGR Energy and Hitachi Power Europe GmbH -- had qualified in the first phase of bidding. NTPC will now invite price bids for supercritical boilers from these three bidders.

Shares of power equipment maker fell on profit taking after recent strong gains. India's largest power equipment maker by sales Bhel slumped 3.57%. Among other capital goods stocks, Suzlon Energy, Praj Industries and Punj Lloyd dropped by between 7.19% to 8.45%.

India's biggest engineering & construction firm by order book, Larsen & Toubro, fell 1.5%. L&T said during trading hours on Tuesday, 21 February 2012, that its Metering & Protection Systems business has agreed to form a strategic partnership with UK-based Cyan Holdings to collaborate in the development, supply and delivery of advanced metering solutions comprising L&T electricity meters integrated with Cyan's wireless communication modules for AMI, Smart Metering and Smart Grid Pilot projects.

Shares of power equipment makers had surged recently as a favourable court ruling has paved the way for state-run power generation major NTPC to place bulk orders for boilers based on supercritical technology.

FMCG stocks dropped. United Spirits, Hindustan Unilever, Dabur India and Nestle India shed by between 0.25% to 14.26%. Cigarette maker ITC rose 0.6%.

Bank stocks edged lower on profit taking after recent strong gains. India's largest private sector bank by branch network ICICI Bank declined 3.42%.

State Bank of India (SBI) fell 7.91% on reports that the bank has committed around Rs 1200 crore to beleaguered Kingfisher Airlines, including working capital of Rs 400 crore, bank guarantee of Rs 500 crore and loan repayment extension worth Rs 250-300 crore.

Bank of India dropped 7.72%. The bank said that its board of directors has approved the raising of capital by issue of up to 7 crore fresh equity shares to Government of India (Promoters) and Life Insurance Corporation of India or to any other investors, as permitted on preferential basis, subject to the approval of the shareholders and regulatory authorities.

Shares of many other state-run banks fell. Oriental Bank of Commerce, United Bank of India, Syndicate Bank, Vijaya Bank, Allahabad Bank, Dena Bank, Union Bank of India, Canara Bank, Bank of Baroda, and Punjab National Bank lost 4.62% to 8.53%

India's second largest bank by net profit HDFC Bank rose 0.12% to Rs 531.75. The stock hit a record high of Rs 538.85 in intraday trade today, 22 February 2012.

The BSE Bankex rose 7.11% in the preceding six sessions to 12,838.84 on 21 February 2012, from a recent low of 11,986.92 on 10 February 2012. The BSE Bankex had outperformed the market over the past one month until 21 February 2012, gaining 17.66% compared with the Sensex's 10.09% rise. The index had also outperformed the market in past one quarter, rising 30.58% as against 15.57% rise in the Sensex.

Infrastructure Development Finance Company fell 4.41%. The lender to the infrastrcuture sector said it has filed the Offering Circular with Singapore Exchange Securities Trading for listing of notes to be issued pursuant to the company's $1.5 billion (or its equivalent in other currencies) Medium Term Notes (MTN) programme.

Airline stocks tumbled as oil rose to a nine-month high on Tuesday on Greece's bailout. Jet Airways, Kingfisher Airlines and SpiceJet shed by between 6.53% to 9.05%. Jet fuel or aviation turbine fuel (ATF) typically makes up almost half of an airline's operating cost. Prices of jet fuel are directly linked to crude oil prices. State-run oil marketing companies--Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation revise jet fuel prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight.

Metal stocks reversed initial gains. Jindal Steel & Power, JSW Steel, Sail, Hindustan Zinc, Tata Steel, and Hindalco Industries fell by between 2.53% to 4.82%.

Sterlite Industries (India) slumped 6.62% and Sesa Goa fell 4.18% on media reports that the Vedanta Resources group may merge iron ore firm Sesa Goa with copper and aluminium maker Sterlite Industries to simplify and consolidate its corporate structure.

Bhushan Steel fell 1.6%. The company said its board approved a rights issue of 1.41 crore equity shares in the ratio of 1:15 (one equity share for every 15 equity shares held) at Rs 335 each. The announcement was made during trading hours today, 22 February 2012.

Realty stocks reversed initial gains on profit taking. DLF, HDIL and Unitech dropped by between 7.69% to 8.31%. From a recent low of 1370.23 on 2 January 2012, the BSE Realty index jumped 58.36% to 2169.96 on 21 February 2012.

IT stocks were mixed. India's second largest software services exporter by revenue Infosys rose 0.53%. India's third largest software services exporter by revenues Wipro shed 0.32%.

India's largest software services exporter by revenue, TCS rose 1.46% to Rs 1251.90. The stock scaled a record high of Rs 1,266 in intraday trade today, 22 February 2012. The company's chief executive N. Chandrasekaran said in a recent media interview that the company expects business momentum to strengthen next fiscal year as clients have started loosening their purse strings despite economic uncertainties.

Sun Pharmaceutical Industries rose 1.24% after the US drug regulator reached a limited, temporary arrangement to import Lipodox from the company and its distribution subsidiary, Caraco Pharmaceutical Laboratories. Lipodox is a generic of Johnson & Johnson's cancer drug Doxil. According to reports, Doxil has been in short supply since about mid-2011. Caraco, a generic-drug maker based in Detroit, will temporarily import the drug Lipodox from its India-based parent, Sun Pharmaceutical Industries, the FDA said.

Auto stocks fell across the board on profit taking. India's largest car maker by sales Maruti Suzuki India declined 0.23%. Commercial vehicles maker Ashok Leyland shed 4.29%.

India's largest motorcycle maker by sales Hero MotoCorp declined 0.14%.

India's second largest motorcycle maker by sales Bajaj Auto declined 0.55% to Rs 1800.85. The stock hit a record high of Rs 1,838.90 in intraday trade today, 22 February 2012.

India's largest truck maker by sales Tata Motors shed 1.27%, with the stock reversing initial gains. The company's chief financial officer said the company plans to double investments in its Jaguar Land Rover brands to 1.5 billion pounds a year to help launch new products and variants.

India's largest utility vehicles maker Mahindra & Mahindra (M&M) shed 2.39%. M&M's consolidated net profit, adjusted for extra-ordinary items, rose 13.2% to Rs 831.80 crore on 27.6% growth in gross revenue and other income to Rs 16488.40 crore in Q3 December 2011 over Q3 December 2010. Mahindra Satyam, Mahindra Finance and Mahindra Forgings led the improved performance of the Mahindra Group in Q3 December 2011. M&M announced the consolidated results during trading hours on Tuesday, 21 February 2012.

Lanco Infratech clocked highest volume of 2.32 crore shares on BSE. Cals Refineries (2.26 crore shares), Suzlon Energy (1.21 crore shares), Surya Chakra Power Corporation (1.17 crore shares) and Unitech (1.11 crore shares) were the other volume toppers in that order.

SBI clocked highest turnover of Rs 286.64 crore on BSE. United Spirits (Rs 105.85 crore), HDIL (Rs 76.29 crore), L&T (Rs 76.20 crore) and Reliance Capital (Rs 75.89 crore) were the other turnover toppers in that order.

The government is working with state governments for early implementation of a goods and services tax (GST), Finance Minister Pranab Mukherjee said on Wednesday, 22 February 2012.

India's economy is expected to grow an annual 7.1% in the current financial year that ends in March, and 7.5 to 8% in the next financial year, C. Rangarajan, chairman of Prime Minister Manmohan Singh's economic advisory council said. The economy has lost momentum as euro zone debt woes coupled with high interest rates and policy paralysis at home have hit capital investment. Rangarajan released the document 'Review of the Economy 2011-12' at a Press Conference in New Delhi today. He said a likely overshoot in fiscal deficit over the budgeted 4.6% of gross domestic product is a matter of concern and the government must lay out a roadmap for fiscal consolidation.

Meanwhile, the Multi Commodity Exchange (MCX) on Tuesday, 21 February 2012, raised Rs 95.62 crore from 12 anchor investors. MCX's initial public offer (IPO) opened for bidding today and will close on Friday, 24 February 2012.

Foreign institutional investors (FIIs) bought shares worth a net Rs 1400.17 crore on Tuesday, 21 February 2012, as per provisional data from the stock exchanges. FIIs have bought shares worth a net Rs 13549.43 crore in this month so far (21 February 2012), as per provisional data from the stock exchanges. The inflow this month comes on the top of heavy purchases last month. FIIs bought shares worth a net Rs 10357.70 crore in January 2012, as per data from Securities & Exchange Board of India (Sebi).

The government said on Tuesday that inflation based on the consumer price index (CPI) rose 7.65% in January 2012. The annual CPI data released for the first time on Tuesday measures retail prices in major food groups, fuel, clothing, housing and education across rural and urban India. The new CPI price series is gradually expected to displace wholesale price data as the primary indicator of inflationary trends.

Finance Minister Pranab Mukherjee will present the annual budget for 2012/13 on 16 March 2012, while the railways budget will be presented on 14 March 2012. The budget session of parliament will start on 12 March 2012. The government will present on March 15 the Economic Survey for 2011/12, a document on the state of economy prepared by the economic division in the ministry of finance. The annual budget is usually presented on the last working day of February. However, the budget has been delayed this time due to the ongoing assembly polls. Polling for assembly elections in five states concludes in early March 2012.

Reports indicate that the finance ministry is considering a proposal to increase excise duty from 10% to 12%, although still lower than the level before the 2008 financial crisis. The move is aimed at helping the government improve its fiscal situation but it is expected to push up the cost of almost all manufactured goods from food products to consumer durables and automobiles.

European stock markets drifted lower on Wednesday on weak economic data. Key benchmark indices in France, UK and Germany shed by between 0.35% to 0.85%.

Private-sector activity across the 17-nation euro zone contracted unexpectedly in February, according to the preliminary Markit purchasing managers index for the region released Wednesday. The index declined to 49.7 from 50.4 in January. A reading of less than 50 indicates a contraction in activity.

Asian markets were mixed on Wednesday amid concerns over Europe's Greek aid deal and higher oil prices. Key benchmark indices in Hong Kong, China, South Korea, Japan and Taiwan rose by between 0.22% to 1.01%. Key benchmark indices in Indonesia, and Singapore were down by between 0.2% to 0.97%.

China's manufacturing sector contracted in February for the fourth straight month as new export orders dropped sharply in the face of the euro-area debt crisis, the HSBC flash purchasing managers index showed on Wednesday. The PMI, the earliest indicator of China's industrial activity, rose to a four-month-high at 49.7 in February from 48.8 in January. The PMI has been below 50, which demarcates expansion from contraction, for most of the last eight months.

Trading in US index futures indicated a flat opening of US stocks on Wednesday, 22 February 2012. US stocks finished mostly higher on Tuesday after European officials agreed to another round of aid for Greece, pushing the Dow Jones Industrial Average briefly above 13,000 for the first time since 2008.

Powered by Capital Market - Live News

Financial  Technologies Ltd

CMP: Rs.254.80

24 August 2014: Jignesh Shah, founder and promoter of Financial Technologies Group, who was out of action following the Rs 5,500- crore National Spot Exchange scam, has secured bail. 

Shah's high-profile friends may have deserted him, but his core team-his friend and cofounder of Financial Technologies Dewang Neralla, brother Manjay Shah and cousin Paras Ajmera-is said to be conducting business in his absence.

In fact, insiders say it is Ajmera, who is carrying out all crucial behind-the-scene operations. Some in the market believe that Ajmera is a master strategist and close to the broking fraternity. 

Such is Ajmera's hold that he is said to have even controlled the salary of every employee in the company. Last November, Ajmera resigned as a director from the Board of MCX, but sources say he was the architect in signing the deal with Kotak Mahindra Bank for selling Financial Technologies' 15-per cent stake in the Exchange for Rs 459 crore.

Courtesy: Mail Online

Mid Market Chart Check

[Excerpts of my mid-day inputs to the clients]

Market experienced buying at lower levels. A gap down opening took the Nifty to a low of  5118.85 during first few hours of trade. However, strong buying at lower levels pulled it to a high of 5317.70. Finally it settled almost flat. 
Due to over sold situation in short term and subsequent short cover, the  F&O expiry is expected to be closed in the positive today.  Since the morning, there has been relentless buying in the Indian bourses, after the INR appreciated against the USD. However, what is to be noted is that till now the rallies are proving to be short lived and are getting exhausted quickly. On the other hand lower level is attracting buying interest also. This has resulted into extreme volatility on the either side of the spectrum. However, it seems there are now some hope of Nifty going to 5700 levels by the end of September, which is normally a good month for the BULLS. 

Resistance: 5425 / 5475
Support: 5350 / 5300.

Today' Call: Buy J P Associates Ltd (BSE Code: 5325322) at Rs.33-33.40, T--Rs.39, Sl-Rs.29. The news is that Aditya Birla Group is close to concluding a deal to buy out the company's cement plant in Gujarat for close to 35 bln rupees (Rs.3500 Cr), which could be announced anytime from now. Please remember, last time on such a news, the scrip rallied from Rs.51 to around Rs.90 plus. Those who wants to take  a small risk then they can try Rs.40 Call of J P Associates Ltd at Rs.1.40, for a target of Rs.3-4 in the next 30 days. But do keep a SL of Rs.0.80 paise for any down move.  CLICK HERE & CLICK HERE. 
MCX Ltd which was recommended around Rs.255 and Rs.272, last week is today locked at the Upper Circuits at Rs.256.15. The is near the first target. 
Those who have earlier taken B F Utilities Ltd at Rs.128-128, or later, bought it around Rs.118-120, when it fell can continue to add on to their positions and wait for the scrip to cross Rs.200. Today, I am told that an advisory service has recommended the scrip, as a buy for a target of Rs.163.Today the scrip already touched Rs.134.40.
Those who have entered VIP Industries Ltd yesterday, are suggested to exit the counter at around Rs.47.80-48 or either with small profits, or with cost price, because the stock is not performing as expected, even as the INR appreciated against the USD. It was recommended yesterday, on the two premises: 
(i) Ace investor, Rakesh Jhunjhunwala has increased his holdings, mostly probably banking on the revival of sales from the CSD business of the company. 
(i) Any appreciation of the INR against the USD would be positive for the company as it imports around 80-85 % of its products. 
However, the stock did not react too much on the positive side, may be because the price of crude has risen, on the fear of another war in the middle-east. 

SELL GOLD AND NOBLE METALS

I think Gold is a sell from now onward. The gold is now trading at Rs.29706, in MCX, but I am expecting it to further break Rs.28, 000 mark in the coming days. The reasons could be many but primary among them could be the following:

(i) The world-wide inflation is expected to come down in the coming days, pulling down the demand for gold. 

(ii) The government is talking of improving the sentiment of the Indian Capital Markets, which could be looked in  a round about way to curtail the demand for gold. This means the gold demand as an investment could come down in the coming days. 

(iii) According to view of India Forex Advisors, “ Gold is trading at $ 1575 levels. Gold prices ended on a flat note ahead of the EU Summit, as market participants are not expecting any new measures will be announced to tackle the ongoing European Debt crisis. This may prompt investors to shift from Gold to US Dollar. Near term support is at $1558 levels, whereas strong resistance can be seen near $1592 levels (21 day EMA on the daily chart). Gold remains bearish as expected internationally in dollar terms”.

Gold has recently lost its safe haven appeal after the financial market turmoil caused by the Eurozone crisis. Moreover, Federal Reserve's decision to take only a modest step to boost the economy forced investors to cash in bullion to cover losses.

In such a situation, please liquidate your position in Gold and invest the money in the Indian Capital Market, especially in good infrastructure counters. 

WINNING STROKES: THINK DIFFERENT

Rolta India Ltd moved and moved today as it touched Rs.125.30 intra-day while closing near the day's high at Rs.122.85 in the BSE and Rs.123.40 in the NSE, up more than 6% in both the exchanges. The scrip will again be moving towards Rs.170-180 ranges and hence stay invested. It is not only because Bharat Electronics Ltd-Rolta India consortium bagged the Ministry of Defence’s (MoD) development agency order for the Battlefield Management System (BMS) project, worth over Rs.50,000 crore, but due to inherent strength of the company. The BMS project, categorised as a "Make in India" programme under the DPP, will be one of the largest solutions to be indigenously manufactured for the Indian Army.

Rasoya Proteins Ltd closed at Re.0.50 up more than 11.11% in the NSE. It hit the upper circuits in both the exchanges. The as I mentioned umpteen number of times, this stock will give superb returns going forward. This is an A-group company and hence the investors should accumulate it in all declines. 

My recommended Hindustan Oil Exploration Ltd today moved to Rs.39.75, before closing at Rs.39.30 up 3.59%. There were earlier media reports that Sun Pharma Ltd's promoter may pick up major stake in the company. The scrip should cross Rs.50 in the next few days, as the Crude Oil prices heads north. 

Gitanjali Gems Ltd moved to Rs.43.55, before closing at Rs.42.90. It is a common perception among the analyst fraternity that USD might rise if the US Fed hikes interest rates and hence outlook for the gold could remain subdued in the next 9-10 months. However, the geo-political situation is fast changing and might help a rise in the gold prices. The rise in the dollar may also provide a cushion to domestic gold prices. Even if the price of gold declines in dollar terms, the weakening of the rupee will keep prices high in rupee terms. Hence, buy the stock is Gitanjali Gems Ltd in all declines and keep holding. 

Veer Energy and Infrastructure Ltd today moved to Rs.3.37 before closing at Rs.3.28. The stock will invariably move towards Rs.5, in the coming days, as the government talks of providing more focus to the renewable energy sector. India’s wind power target of 60 GW by 2022 is easily attainable but solar target of 100 MW requires cost-effective support to be met, says a study report. 
In case of Nifty, today, it was expected that the market could rally, as the market was not only looking oversold but also, FIIs selling looked synthetic, due to rallies in the primary market. Today, the Sensex rallied 479 points while the Nifty posted the biggest daily gain in 2 months. The investors snapped up beaten down blue-chips after the Lower House of Parliament approved the 2015/16 Finance Bill on Thursday. Foreign institutional investors (FIIs) were net buyers in the equity segment worth Rs.605.3 million on both BSE, NSE and MCX-SX on May 04, as per provisional data available at the BSE. They bought equities worth Rs.51.05 billion and sold equities worth Rs.50.45 billion. While domestic institutional investors (DIIs), which include banks, DFIs, insurance and MFs, were net buyers in the equity segment worth Rs.1.46 billion. They bought equities worth Rs.12.53 billion and sold equities worth Rs.11.07 billion.

WINNING STROKES: THINK DIFFERENT

Jai Balaji Industries Ltd hit the buyer freeze in the late afternoon trade. The reasons are best known to all. 

As expected Sintex Industries Ltd moved to Rs.86, before cooling a bit. 

Country Club India Ltd, is doing absolutely fine. According to my close sources, all the FCCB related issues will be solved by 31st March, 2012. Moreover, the company is expanding not only in India but also in overseas.
Key benchmark indices edged higher for the second day in a row as bank stocks rose after the Reserve Bank of India (RBI) announced a reduction of 75 basis points in banks' cash reserve ratio (CRR) requirement to ease liquidity situation in the banking system. The 50-unit S&P CNX Nifty attained its highest closing level in more than a week and half. The barometer index, BSE Sensex, scaled its highest closing level in more than one week. Index heavyweight Reliance Industries (RIL) edged higher. The Sensex advanced 84.43 points or 0.48%, up close to 90 points from the day's low and off about 185 points from the day's high.
Auto and IT stocks were mixed. Engineering and construction major L&T rose for the second day in a row after naming a new CEO and MD. GAIL (India) rose after twin bulk deals. The market breadth was positive. BSE Small-Cap and Mid-Cap indices outperformed the Sensex.
From a recent low of 17,145.52 on 7 March 2012, the BSE Sensex has gained 442.15 points or 2.57% in two trading sessions. The barometer index has lost 161.02 points or 0.9% in March 2012 so far (till 12 March 2012). The index has surged 2,132.75 points or 13.79% in calendar 2012 so far (till 12 March 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2,451.81 points or 16.19%. From a 52-week high of 19,811.14 on 6 April 2011, the Sensex has lost 2,223.47 points or 11.22%.
Coming back to today's trade, the market pared gains after a firm start triggered by the Reserve Bank of India's announcement after markets hours on Friday, 9 March 2012, of a reduction in cash reserve ratio (CRR) of banks by 75 basis points to ease liquidity situation in the banking system. The market came off lows in morning trade. Key benchmark indices regained positive zone after slipping into the red in mid-morning trade. The market regained strength in afternoon trade. The market held positive zone in mid-afternoon trade.
The BSE Sensex advanced 84.43 points or 0.48% to settle at 17,587.67, its highest closing level since 3 March 2012. The index jumped 268.86 points at the day's high of 17,772.10 in opening trade, its highest level since 29 February 2012. The index fell 8.59 points at the day's low of 17,494.65 in early afternoon trade.
The S&P CNX Nifty advanced 26 points or 0.49% to 5,359.55, its highest closing level since 29 February 2012. The index hit a high of 5,421.90 and a low of 5,327.30 in intraday trade.
The BSE Mid-Cap index gained 1.06% and the BSE Small-Cap index rose 0.7%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2339 crore, lower than Rs 3475.67 crore clocked on Friday, 9 March 2012.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,599 shares rose and 1,246 shares fell. A total of 121 shares were unchanged.
Among the 30-share Sensex pack, 17 gained while the rest declined.
Index heavyweight Reliance Industries (RIL) advanced 3.02% to Rs 796.95 in volatile trade. The stock hit a high of Rs 802.80 and low of Rs 781. RIL along with BP PLC will reportedly submit a joint plan to the government to develop the D6 natural gas block and its satellite fields as an integrated unit. The proposal is significant in that it will seek approval to develop an entire block as one unit, rather than follow the current practice of getting clearance for one oil or natural gas field at a time.
In 2011, BP purchased a 30% stake in 21 RIL's oil and gas blocks across India, including D6, which is India's biggest gas discovery so far. RIL is facing declining output at D6 due to reservoir complexity, a natural decline in reserves and delays in developing satellite fields. Output at the D1, D3 and MA fields in the D6 block has plunged to about 38 million metric standard cubic meters a day (MMSCMD) from 60 MMSCMD in June 2010. It is estimated that output will fall further to 27.60 MMSCMD in the next financial year starting April, and to 22.60 MMSCMD in the year after that.
GAIL (India) rose 1.59% to Rs 354.30 on volume of 17.3 lakh shares. A bulk deal of 8 lakh shares at Rs 351.75 per share was executed in the counter on BSE in morning trade. Another bulk deal of 7 lakh shares at Rs 352 per share was also struck on the counter on the BSE.
India's largest engineering and construction major L&T advanced 3.54%, with the stock extending Friday's 5.27% gain. During market hours on Friday, 9 March 2012, the company said K. Venkataramanan will take over as the Chief Executive Officer and Managing Director of L&T from 1 April 2012. He will succeed A. M. Naik who will step down as Managing Director, but continue as Executive Chairman of the group, the company added. The decision was taken by the board of directors to bifurcate the position of Chairman & Managing Director.
Most bank stocks rose after the Reserve Bank of India (RBI) announced a reduction of 75 basis points in banks' cash reserve ratio (CRR) requirement to ease liquidity situation in the banking system. The announcement was made after trading hours on Friday, 9 March 2012.
India's largest bank by branch network State Bank of India jumped 3.96% and was the top gainer from the Sensex pack. The bank's chairman Pratip Chaudhuri was quoted by the media as saying on Sunday, 11 March 2012, that the bank may go in for a follow-on-public-offer (FPO) or institutional placement of shares next fiscal to fund its business growth.
India's biggest private sector bank in terms of branch network, ICICI Bank gained 1.63%. India's second largest bank by net profit HDFC Bank shed 0.57%.
Interest rate sensitive auto stocks were mixed. India's largest commercial vehicles maker by sales Tata Motors gained 1.54%, with the stock extending two-day 4.96% gain.
India's largest utility vehicles maker Mahindra & Mahindra (M&M) declined 1.88%. During market hours Friday, 9 March 2012, M&M said, as part of its ongoing rationalisation of finished stocks, it would be observing no production days up to 2 days per week for the remaining period of March 2012 at the company's tractor plants located at Rudrapur, Nagpur and Jaipur. The management does not envisage any material adverse impact on availability of tractors in the market due to adequacy of tractor stocks to serve the market requirements, the company said.
India's largest car maker by sales Maruti Suzuki India slipped 0.32%.
India's largest bike maker by sales Hero MotoCorp rose 0.96% on reports the company is building in-house capabilities to make its own engines by teaming up with the world's largest privately-owned engine developer AVL of Austria.
India's second largest bike maker by sales Bajaj Auto rose 2.31%.
The Budget announcement by Finance Minister Pranab Mukherjee on 16 March 2012 is expected to bring bad news for the automobile sector, with a likelihood of more taxes, especially on diesel vehicles, which will lead to price hikes and further slowdown in demand.
IT pivotals were mixed. India's third largest software services exporter by revenues Wipro rose 1.16%. India's second largest software services exporter by revenue Infosys declined 1.51%. India's largest software services exporter by revenue TCS fell 1.35%.
Shares of companies whose fortunes are linked to orders from Indian Railways jumped ahead of the railway budget this week. Kernex Microsystems, Kalindee Rail Nirman, Titagarh Wagons, BEML, and Stone India rose by between 1.15% to 3.78%. The Railway Budget will be presented on Wednesday, 14 March 2012.
Given the financial condition of railways, this Rail Budget is likely to seek a two-year moratorium on paying dividend to the government.
Textile stocks were mostly lower after trade secretary Rahul Khullar told reporters on Monday a panel of ministers will likely review a halt on fresh cotton exports from India in two weeks. Arvind Mills, Patspin India, Jindal Cotex, Jindal Worldwide, Alok Industries and Ruby Mills fell by between 0.94% to 3.23%. The government has flip-flopped on the issue of banning cotton exports. After saying it was lifting a ban on overseas sales of the fibre on the weekend, Khullar said on Monday no fresh exports would be allowed and only the quantity permitted to be sold before the ban will be allowed to be shipped.
Realty stocks gained. DLF, HDIL and D B Realty rose by between 0.29% to 8.02%. Unitech was flat. Property consultants and real estate developers have reportedly demanded industry status to the realty sector in the forthcoming Budget. They have also sought incentives to promote affordable housing and an increase in the tax exemption on home loans. To boost supply, they have also asked for a single-window clearance for real estate development projects and foreign direct investment (FDI) in multi-brand retail to create demand for retail space in shopping malls.
Metal stocks rose as LMEX, a gauge of six metals traded on the London Metal Exchange gained 1.86% on Friday, 9 March 2012. Bhushan steel, Sterlite Industries, Hindalco Industries, Tata Steel, Nalco, and Jindal Steel & Power rose by between 0.09% to 2.69%.
JSW Steel rose 2.27% after the company said it is foraying into the manufacture of electrical steel in line with the company's strategy of increasing its portfolio of value added products.
Coal India rose 0.39%. The company announced after market hours today that the board of directors of the company at its meeting held on today, 12 March 2012, has approved payment of interim dividend for the financial year 2011-12 of Rs 9.50 per share as recommended by the Audit Committee of the company.
Avance Technologies clocked highest volume of 1.98 crore shares on BSE. Dazzel Confindiv (89.67 lakh shares), Cals Refineries (79.11 lakh shares), Lanco Infratech (71.38 lakh shares) and SpiceJet (55.65 lakh shares) were the other volume toppers in that order.
SBI clocked highest turnover of Rs 159.19 crore on BSE. Multi Commodities Exchange of India (MCX) (Rs 152.21 crore), GAIL (India) (Rs 61.30 crore), L&T (Rs 53.41 crore) and Reliance Power (Rs 50.51 crore) were the other turnover toppers in that order.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1284.65 crore on Friday, 9 March 2012, as per provisional data from the stock exchanges.
Industrial production grew 6.8% in January 2012 from a year earlier, sharply higher than a revised 2.5% rise in December 2011, helped by a strong rebound in manufacturing output. Manufacturing output, which has a 75.5% weight in the index of industrial production, rose 8.5% from a year earlier in January. It had risen a revised 2.6% on year in December. Electricity production increased 3.2% from a year earlier in January while capital goods output shrank 1.5%.
The Reserve Bank of India (RBI) after market hours on Friday, 9 March 2012, surprised the markets by slashing the cash reserve ratio (CRR) by 75 basis points to 4.75% from 5.5% to ease liquidity situation. The CRR cut, effective the fortnight beginning 10 March 2012, will inject around Rs 48000 crore of primary liquidity into the banking system. At the 3rd quarter policy review in late January 2012, RBI had announced a cut of 50 basis points in CRR, thereby injecting Rs 32000 crore into the cash-strapped system.
The government will release data on inflation based on the wholesale price index (WPI) for February 2012 on Wednesday, 14 March 2012. WPI inflation for February 2012 is projected at 6.7% as per the median estimate of a poll of economists carried out by Capital Market. WPI inflation stood at 6.55% in January 2012.
Meanwhile, data on advance tax for the last installment of 15 March 2012 may provide cues on Q4 March 2012 corporate earnings.
The Reserve Bank of India (RBI) is slated to announce a mid-quarter review of the monetary policy on Thursday, 15 March 2012, a day before the presentation of the Union Budget 2012/13.
The government is working with state governments for early implementation of a goods and services tax (GST), Finance Minister Pranab Mukherjee said on 22 February 2012.
Stating that the United Progressive Alliance (UPA) was committed to honest and efficient governance, President Pratibha Patil on Monday said the country would soon be back on the high growth path of eight to nine percent from the seven percent estimated for the current fiscal. Addressing the joint session of Parliament on first day of the budget session, the President said the long-term fundamentals of the Indian economy remain robust. The government plans to achieve a 9% annual growth target in the five-year plan period ending on 31 March 2017.
Mukherjee will present the annual budget for 2012/13 on Friday, 16 March 2012, while the railways budget will be presented on Wednesday, 14 March 2012. The government will present on Thursday, 15 March 2012 the Economic Survey for 2011/12, a document on the state of economy prepared by the economic division in the ministry of finance. The annual budget is usually presented on the last working day of February. However, the budget has been delayed this time due to the assembly polls.
Reports indicate that the finance ministry is considering a proposal to increase excise duty from 10% to 12%, although still lower than the level before the 2008 financial crisis. The move is aimed at helping the government improve its fiscal situation but it is expected to push up the cost of almost all manufactured goods from food products to consumer durables and automobiles.
Meanwhile, the parliamentary standing committee on finance has given its approval to a revised version of the proposed Direct Taxes Code (DTC) Bill, 2010. The committee has recommended a more progressive tax regime, which entails widening of the income-tax slabs, increasing the exemption limit for savings and raising the ceiling for wealth tax. If accepted, these recommendations will increase disposable incomes in the hands of taxpayers, encourage savings and levy a higher tax on the rich, besides reducing compliance costs for the income-tax department.
The DTC Bill, 2010, consolidates and integrates all the direct tax laws and replaces both the Income Tax Act, 1961, and the Wealth Tax Act, 1957. The committee headed by Bharatiya Janata Party leader Yashwant Sinha, which submitted its report to the Lok Sabha speaker on Friday, 9 March 2012, has also recommended abolition of the securities transaction tax that is levied on the trading of equity shares and some other instruments.
European markets were mixed in volatile trade on Monday as China posted larger-than-expected trade deficit for February. Key benchmark indices in UK, and France were down by between 0.06% to 0.11%. Germany's DAX was up 0.16%.
Asian markets were trading lower on Monday, 12 March 2012, as sentiment sagged after China reported a much bigger than expected trade deficit of $31.48 billion in February, turning around sharply from a $27.28 billion surplus in January. Key benchmark indices in China, Japan, Indonesia, Singapore, South Korea and Taiwan were down by between 0.03% to 1.1%. Hong Kong's Hang Seng rose 0.23%.
China's exports rose less than expected while imports climbed more than anticipated by economists, with the country importing record volumes of crude-oil in February 2012.
Trading of US index futures indicated a flat opening of US stocks on Monday, 12 March 2012. US stocks advanced on Friday, 9 March 2012 as investors brushed off the technical default by Greece and focused instead on another strong monthly jobs report. The Dow Jones Industrial Average advanced 14.08 points, or 0.11%, to 12,922.02. The Standard & Poor's 500 Index rose 4.96 points, or 0.36%, to 1,370.87. The Nasdaq Composite index gained 17.92 points, or 0.60%, to 2,988.34.
In economic data, US employers added 227,000 jobs to their payrolls in February 2012, government data showed, while the unemployment rate held at a three-year low of 8.3%.

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Market Mantra

Yesterday, the Nifty moved as expected and closed with a a spectacular gain of 216 points. The market opened with a huge gap, which was followed by sustained buying by the bulls in the run-up to 5900-plus. The bulls were in full control of the proceedings throughout the days and Nifty finally settled near the top of the day.
After a long period on uncertainty and volatility, market seems to have taken an upward direction now. Nifty has recovered 786 points from the low of 5118 in just nine trading sessions. This shows nothing but a reversal and increases the possibility of a medium term uptrend ahead. However......(This Portion is for the Paid Group Members / Clients).
US indices ended higher Tuesday on encouraging economic data from China and as tensions lingering around Syria eased. Key Asian indices are trading mixed as some of them gave up gains on profit booking.
Fundamentally speaking, the share indices are trading flat after yesterday's massive upmove. With the focus now being shifted to the small and mid cap space, the indices are expected to be range-bound for the next few trading sessions.
Today's Call: Buy Opto Circuits Ltd at Rs.25.50--26, for  a target of Rs.32. When most of the pharmaceutical stocks are doing fine, this stock is yet to spurt up. Even in these kinds of markets, the company came out with a net profit of Rs.22 Cr, in Q1FY14, which gave an EPS of Re.0.92. The annualized EPS for FY14, comes around Rs.4-5. Also, it's 21 DSMA>50 DSMA, which indicates bullish formation on the chart. However please keep a SL of Rs.23.50.
Gold price in MCX Ltd is marginally up (flat) today, after yesterday's fall. The seasonal demand would keep the price of the yellow metal buoyant during the coming days. As long as Gold prices in India does not go below Rs.24, 000, there is nothing much to fear from investing in the shares of gold loan companies. CLICK HERE. The loans given are for the short term, hence, they are more or less safe. I have spoken with the sources of Manappuram Finance Ltd (Rs.17.25) who said, the company is now taking steps which would increase the shareholder value. Meanwhile the company has appointed Mr. Kapil Krishan, as the Chief Financial Officer of the Company. He has joined the Company on September 09, 2013.Those who are holding the scrip can keep holding with a SL of Rs.16. 
Now suddenly, when the sentiment in the telecom sector has improved one can go for, Tulip Telecom Ltd (Rs.7.85), at this hour. Buy minimum, 5000--10, 000 shares of the company and keep holding. When a rally in the mid and small cap has started, these stocks have to perform. 
Jai Prakash Associates Ltd, today reached the 2nd target of Rs.42 (intra-day it touched Rs.43) and hence, I would suggest all to book at least 80% of the profit. And keep holding the rest with a SL of Rs.38.70. The debt of the company is humungous around Rs.62, 000 crores, which will be reduced by around Rs.3700 Cr. Therefore major part of the debt still remains. 
DECCAN CHRONICLE HOLDINGS LTD has been declared a wilful defaulter by CENTRAL BANK OF INDIA (CBI). The bank has referred the matter to the Reserve Bank of India. Hence, this might have a NEGATIVE effect on the balance sheet of CBI, therefore exit the stock of CBI at around Rs.58, and wait for dips to enter in Dena Bank Ltd around Rs.XXXX. However, those who are a little risk taking can buy Punj Lloyd Ltd at Rs.24.50-25, for a target of Rs.31-32 in the next few trading sessions.

Gold Survey: Survey Participants See Higher Gold Prices Next Week

[Editor: Gold closed with a gain of 3.17% in the MCX Ltd, today!! Congratulations to all the Gold Bulls.

Special thanks to John Browne (Euro Pacific Capital Economic Consultant, US), Jim Rickards (Tangent Capital Partners Senior MD, US) and Peter David Schiff (CEO and chief global strategist of Euro Pacific Capital Inc, US).....!! I was very bullish on the GOLD, after reading lot of positive reports on the same and especially when it fell below Rs.30, 000 per 10 grams in Mumbai (Bombay). I had in this connection put a number of analysis on this blog, hope some of you have read the same].

Gold prices are forecast to rise next week, a majority of participants in the weekly Kitco News Gold Survey said.

In the Kitco News Gold Survey, out of 36 participants, 19 responded this week. Of those 19 participants, 11 see prices up, while four see prices down and four are neutral or see prices trading in a range. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Last week, survey participants were nominally bullish. As of noon EDT Friday, prices were up about $8 on the week. As of Sept. 13, survey participants have been correct three of the past five weeks.

Sean Lusk, director commercial hedging division at Walsh Trading, said there are a few reasons why he sees prices rising. The split views of the varied Federal Reserve governors on monetary policy suggest that uncertainty remains, which “conveys to me traders will most likely have a bullish bias,” he said.

Gold could also find safe-haven demand if next week’s nonfarm payrolls report comes out disappointing; additionally, gold could find more safe-haven demand amid the fiscal brinkmanship going on in the U.S. Congress, he added.

Mark Leibovit, editor, VR Gold Letter, said he’s giving bulls the benefit of the doubt, but is watching technical charts closely. “Under $1,285-$1,300 the chances of seeing a retest of $1,180 or even lower prices becomes a possibility. Bearish sentiment is still high and the ‘fundamental’ case presented by most analysts is bearish. This makes me more bullish, because I believe their view of the fundamental case is incorrect. Gold is a currency and with world currencies all being devalued and the fact they are essentially nothing more (than) paper is enough of a reason to be accumulating gold and to remain constructive,” he said.

Those who see weaker prices said gold’s outlook remains soft. “I think gold will be lower next week,” said Kevin Grady, owner of Phoenix Futures and Options LLC. “Although gold may hold a bid as concerns persist about a resolution to the debt ceiling, I think some mines will take advantage of any rally to start hedging. Every recent rally has been met with very aggressive selling. The taper has been postponed but it still looms heavy on gold. Once this program begins and we see interest rates rising, we should be testing our recent lows of $1,182. The mines are starting to realize this. I will be watching the forwards market for the first signs of any major hedging.”

A few market participants said they expected gold prices to hold in the current range.

“Most markets this week are being held hostage by the budget/government funding battle and it is anyone’s guess as to the outcome,” said Frank Lesh, broker and futures analyst with FuturePath Trading. “Gold posted an inside week — within last week’s range — so no new price discovery to consider…. The fundamental factors remain the same, physical buying supports on the dips and ETF liquidation limits the highs. I still view gold as range bound and whichever way it runs, you just have to go for the ride. I remain neutral.”

Courtesy: Forbes

Investor sentiment on gold sees upswingSentiment is expected to remain bullish

[Editor: Till yesterday, this financial daily was asking all not to invest in GOLD; but today suddenly their views changed....Huh!! Now will this paper pay for the losses of those who shorted GOLD, reading the outlook of their analysts? But, on the flip side, some investors/ traders never learn from their mistakes of trusting a financial daily blindly. Once they see, a news they jump to either sell or buy the scrip, without understanding what it actually means--this is the irony. This blog  has been maintaining BULLISHNESS on GOLD, since the last few weeks]

The US Federal Reserve’s decision to continue bond-buying has lifted investor sentiment for gold and silver. After the Fed announcement, both metals went up over five per cent in the US market. In Indian market also, both metals rose, but the rise was capped because of appreciation in the dollar value of the rupee.

In the Mumbai spot market, gold climbed 0.9 per to Rs 30,280 per 10g, while silver moved up 1.8 per cent to Rs 51,815 a kg. Spot gold internationally was trading at $1,367.51 per ounce, up 0.2 per cent, while spot silver was trading flat at $22.97 per ounce. Gold on MCX in day trade stood at Rs 30,424 per 10 g, compared with Wednesday’s close of Rs 29,990 per 10g. Silver was at Rs 51,185 a kg, compared to Wednesday’s close of Rs 49,577 a kg.

Market participants say by continuing bond-buying, the Fed has ensured the dollar remains weak, which means money will flow to risker assets like equities and gold.

“Large part of liquidity will go towards equities in the US, but investors will also buy gold as it has been trading lower and international gold could go up to $1,450,” says Gnanasekar Thiagarajan, director-Commtrendz Research. “In India, however, weaker dollar means stronger rupee, which will cap the rise in gold prices.”

He believes base metals are expected to see offtake and hence prices will remain high which will also benefit silver. Because of the rising rupee, the gold price in the Indian market might not go up fast. Gnanasekar puts the Indian price target at Rs 31,000 per 10g.

Reena Rohit, an analyst with the Angel Commodities says: “Easy liquidity has been good for gold price and that was reflected today after yesterday’s (Fed) announcement. Investors are back to the market.”

While from domestic demand side, inauspicious fortnight (pitru paksha) for gold buying is beginning from Friday, retail customers will stay away from the market for the time being. However, “traders have started buying gold to remain prepared for the upcoming demand season,” says Rajiv Popley, director, Popley Group.

On the other hand, base metals traded on a negative note on Indian markets despite commodities moving up internationally, due to appreciation in the rupee.. 

Courtesy: Business Standard

WINNING STROKES: THINK DIFFERENT

Yes Bank Ltd recommended, on last Wednesday touched Rs.293 intra-day before settling at Rs.287.35, a jump of more than 20% in one day. In the same space, Karnataka Bank Ltd was recommended yesterday to the Paid Group members, at Rs.78.50, the scrip touched Rs.86.60 on Thursday, before closing at Rs.85.65.
MCX Ltd which was recommended around Rs.255 and Rs.270, today hit another circuit to close at Rs.453.20, which is almost near my 2nd target of Rs.470. The scrip has been hitting non-stop upper circuits from around Rs.280.  
Buy Tulip Telecom Ltd at Rs.8.15 for a target of Rs.12-15, SL-Rs.7. The Board of Directors of Tulip Telecom has by way of passing a Resolution by Circulation on August 30, 2013 accorded their approval on the appointment of Mr. Anuj Bhargava (Nominee of ICICI Bank) & Mr. P.C. Bandivadekar (Nominee of Tata Capital Financial Services) as the Non-Executive Independent Directors of the Company w.e.f August 29, 2013.

Today SAIL was recommended to the Paid Group at Rs.47.70, on the hope that after monsoon, the constitution activity will pick up. Tata Steel Ltd has raised prices of its flat products by 5%, and those of long products by 3-5%. CLICK HERE. This is expected to have positive impact on the shares of all Steel Companies. Meanwhile, Bloomberg reports: The fastest Chinese steel output on record is still too slow to meet demand from builders, reducing inventories and driving prices toward a bull market. CLICK HERE.
Today Manappuram Finance Ltd though recovered from the lower circuits but still it closed with a loss of  around 3.8%, which surprised me. It is because when most of the Bank Stocks are moving up and the Sensex was up more than 400, it was unusual to see this kind of momentum counters, hitting the lower circuits. What was a little baffling is that, inspite of sources confirming that there is no problem in the company and gold price recovered from their early losses a to move higher by Rs.160 to Rs.32,764 per ten grams in futures trade (as speculators enlarged their positions, moving in tandem with a firming trend overseas. Gold price in overseas markets, which normally set price trend on the domestic front, edged higher today as investors looked for bargains after a sharp drop in the previous session, but it stayed below the key level of $1,400 an ounce as upbeat US data dented its appeal as an alternative investment), the scrip closed in the red. This raises questions as to who is playing with this share, when even its peer group company Muthoot Finance Ltd (touched Rs.124.95 today) is doing much better. Is there any circular trade going on in the shares of Manappuram Finance Ltd, because a large FII has taken position in the counter? The regulatory authority should immediately take steps, so that any attempt to do mischief with the share price is nipped in the bud.  

Market Mantra

Buy McNally Bharat Ltd at Rs.109-110, T--Rs.117. The stock should not break Rs.106 on the downside, on a closing basis and hence this is a golden change to invest. 

Morning Nifty target of SELL at 5430, T--5380 to the Paid Members, has been achieved. I had asked all to exit IFCI Ltd and  Indian Bank Ltd today.  
If you made profit by selling Nifty in the morning and now buy Nifty at 5370--5375 (Spot), T--5460, SL--5350. Buy HINDALCO Ltd at Rs.142.50, T--Rs.147, SL--Rs.139.50. Enter again all the Metal Counters: Steel, Aluminium (Rs.111, T-Rs.118 at MCX), Nickel, Gold, etc. On the other hand if anyone is having ABB Ltd and Sesa Goa Ltd, they should reduce their positions.