Market Pulse

Key benchmark indices hovered in positive zone in early afternoon trade. 

At 13:35 IST, the barometer index, the S&P BSE Sensex, was  seen trading at 33,999.86 up 81.92 points or 0.24% while the NSE was seen at 10,455.15 up 33.75 or 0.32%.

The Sensex was trading below the 34,000 level after hitting an intraday high above that level in morning trade. Domestic macroeconomic data released after market hours yesterday, 12 March 2018, signalling an economic turnaround boosted the sentiment.

IT stocks declined as the rupee firmed against the dollar. Metal and mining stocks rose. Aviation stocks rose.

Volatility struck bourses in early trade as the key benchmark indices turned positive soon after an initial decline triggered by subdued Asian stocks. Stocks extended gains and hit fresh intraday high in morning trade. Key benchmark indices trimmed some gains in mid-morning trade.

The S&P BSE Mid-Cap index was up 1.02%. The S&P BSE Small-Cap index was up 1.22%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,678 shares rose and 754 shares fell. A total of 124 shares were unchanged.

IT stocks declined as the rupee firmed against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports. In the foreign exchange market, the partially convertible rupee was hovering at 64.9625, compared with closing of 65.04 during the previous trading session.

MindTree (down 1.11%), HCL Technologies (down 0.87%), Oracle Financial Services Software (down 0.05%), Tech Mahindra (down 0.31%) and Hexaware Technologies (down 0.29%) fell.

TCS lost 4.75% to Rs 2,907 on reports that that Tata Sons has sold about 2.84 crore shares or 1.5% stake of the company through six block deals in a price range of Rs 2,872 to Rs 2,925 per share on the NSE. Tata Sons held 73.52% stake in TCS (as on 31 December 2017. The money raised from the stake sale will be used by Tata Sons to strengthen its balance sheet, reports added.

Infosys shed 0.07%. Infosys announced its intention to voluntarily delist its American Depository Shares (ADS) from the Euronext Paris and Euronext London exchanges. Infosys ADS will continue to be listed on the NYSE and investors can continue to trade their ADS on the NYSE as before. The announcement was made after market hours yesterday, 12 March 2018.

The primary reason for seeking the proposed delisting is the low average daily trading volume of Infosys ADS on these exchanges, which is not commensurate with the related administrative requirements. During the 5-year period of the company's listing on Euronext Paris and Euronext London, the average daily trading volume of the company's ADS was significantly lower than its average daily trading volume on the New York Stock Exchange (NYSE). The proposed delisting is subject to approval from Euronext Paris S.A. and Euronext London. There will be no change to the Infosys share/ADS count, capital structure and float, as a result of the proposed delisting from the above exchanges.

Metal and mining stocks rose. Hindustan Copper (up 2.39%), JSW Steel (up 0.96%), Tata Steel (up 0.69%), Steel Authority of India (Sail) (up 1.52%), National Aluminium Company (up 0.55%), Hindustan Zinc (up 0.5%), Jindal Steel & Power (up 0.96%) and NMDC (up 0.69%) edged higher. Hindalco Industries (down 0.2%) fell.

Vedanta rose 1.72% to Rs 322.40 after the company's board of directors at its meeting held today, 13 March 2018, declared an interim dividend of Rs 21.20 per share for the financial year ending 31 March 2018. The announcement was made during market hours today, 13 March 2018.

Aviation stocks rose. SpiceJet (up 1.26%) and Jet Airways (India) (up 2.18%) rose.

InterGlobe Aviation rose 0.13%. According to media reports, the Director General of Civil Aviation (DGCA) on Monday, 12 March 2018, grounded a few Airbus A320neo aircraft currently operating in the country due to the ongoing Pratt & Whitney engine issue. DGCA asked IndiGo to ground eight of its A320neo aircraft until further notice.

The civil aviation authority has reportedly said that no concrete proposal has been given by Pratt & Whitney yet on when the engine woes will be resolved. All the grounded A320neo aircraft are fitted with Pratt & Whitney engines, reports added.

InterGlobe Aviation has yet to reply to a stock exchange notice issued late on Monday, 12 March 2018, seeking clarification on the media reports.

Future Consumer jumped 14.26% to Rs 57.70 after a domestic brokerage initiated coverage on the stock with a 'Buy' rating and price target of Rs 76. The brokerage stated in its report that Future Consumer (FCL), an integrated consumer company, is the best play on the huge window of opportunity (presented by a combination of macro factors and company-led initiatives) for brands using modern retail methods of distribution.

In addition, FCL appears best placed among Future Group companies from a revenue, profit and RoCE perspective, given the group's focus on retail expansion to drive growth in its burgeoning brands portfolio. Improving mix and operating leverage are expected to drive significant margin expansion over the next five years, the report added.

Domestic macroeconomic data released after market hours yesterday, 12 March 2018, signalled an economic turnaround. The lower-than-expected CPI inflation and higher-than-expected IIP data will allay fears of an interest rate hike by the Reserve Bank of India.

India's industrial production (IIP) continued to record a strong growth for the third straight month at 7.5% in January 2018 from 7.1% growth in December 2017. The manufacturing sector's production surged 8.7% in January 2018, supporting overall growth in industrial production. The mining output growth slowed down to 0.1% in January 2018, while the electricity generation growth accelerated to five-month high of 7.6% in January 2018, contributing to the improvement in overall industrial production growth in January 2018.

The all-India general consumer price index (CPI) inflation dipped to four-month low of 4.44% in February 2018, compared with 5.07% in January 2018 and at 3.65% in February 2017. The corresponding provisional inflation rate for rural area was 4.37% and urban area 4.52% in February 2018 as against 5.21% and 4.93% in January 2018. However, the core CPI inflation rose marginally to 5.04% in February 2018 compared with 5% in January 2018.

Overseas, most Asian stocks were trading lower ahead of US reading on inflation due today, 13 March 2018, which is likely to give some idea about whether the Federal Reserve will accelerate its pace of rate increases.

In US, the Dow Jones Industrial Average and the S&P 500 index finished lower Monday, 12 March 2018 weighed down by the industrials sector, while the Nasdaq Composite Index closed at a record, in part due to optimism over Friday's jobs data, which showed solid economic growth without triggering wage pressure.

Today's Calls:

#TV Vision Ltd hits the buyer freeze at around Rs.16.80. We can look for targets of Rs.27-29 if Rs.19 is taken out on the upside. Accumulate on dips. 

#The stock of Union Bank of India Ltd is probably heading towards Rs.111-117. You can raise the stop loss to Rs.96 and keep holding. 

#Should you enter into the SCAM TAINTED counter of KSK Energy Ventures Ltd (Rs.9.90)? You need to join the Premium Service to get the answer. 

#Videocon Industries Ltd hit another buyer freeze at Rs.14.70. This stock is going to deliver multi-bagger return going forward, Therefore, don't sell out in a hurry -- however, book profits on the way up.

# The Stock of HDIL recommended to the Premium Members in the morning,  at around Rs.41.60 for short term targets of Rs.44-47,  has hit an intraday high of Rs.46.70, which is almost near the 2nd target of Rs.47. Book some profits and wait for intraday lows to enter.

#Buy the shares of RattanIndia Power Ltd (erstwhile Indiabulls Power Limited) at around Rs.5.7 for a short term target of Rs.9.

#Buy the shares of Apollo Tyres Ltd at around Rs.264, SL: Rs.260, T: Rs.269-272 on T+2 basis. This a pure chart based call.

#SELL Copper at around Rs.451.00 (CMP: Rs.450.95), Stop Loss above Rs.454.10, T: Rs.445.00 on T+1) basis....

#The stock of P C Jewelers Ltd (Rs.379.80) recommended several times in this blog is on fire today, up more than 10%.  

#Join the Premium  Service or trade through my recommended brokerage house with a minimum portfolio size of Rs.3 lakhs to stay ahead of other. This blog only gives an outline of what is sent to Premium Members and hence if you want a complete guidance, then you need to look for Paid Subscription based Service. 

Market Pulse

The stock market further trimmed gains in the mid-morning trade with the two key benchmark indices hitting intraday lows.

At 12.28 IST, the barometer index, the S&P BSE Sensex was trading at 33,847.59 up 100.81 point or 0.30%, while Nifty was seen at 10,399.15  up 40.30 points or 0.39%. 

Key indices opened the session on a stronger footing on firm global cues. Later, indices trimmed gains so far. Global stocks gained as worries about a potential trade war waned in the aftermath of US President Donald Trump's tariff announcement on steel and aluminum.

Among secondary indices, the S&P BSE Mid-Cap index advanced 0.59%, outperforming the Sensex. The S&P BSE Small-Cap index rose 0.28%, underperforming the Sensex.

The breadth, indicating the overall health of the market, was positive. On the BSE, 1,375 shares advanced and 932 shares declined. A total of 137 shares were unchanged.

Stocks of public sector banks edged lower. Bank of India (down 1.94%), Union Bank of India (down 1.19%), State Bank of India (down 0.57%) and Punjab National Bank (down 0.1%) declined. IDBI Bank (up 2.55%) and Corporation Bank (up 0.63%) gained.

Bank of Baroda was up 0.14%. The bank has kept its Marginal Cost of Funds based Lending Rate (MCLR) unchanged, applicable from 7 March 2018. MCLR for overnight loans will be 7.80%, for one month will be 7.85% and for three months will be 7.95%. The MCLR on 6-month loans will be 8.15% and for one-year loans the rate would be 8.30%, the bank said. The announcement was made after market hours yesterday, 5 March 2018.

Stocks of private sector banks advanced. IndusInd Bank (up 2.01%), Yes Bank (up 1.13%), Axis Bank (up 0.56%) and Kotak Mahindra Bank (up 0.35%) gained. HDFC Bank (down 0.2%) and ICICI Bank (down 0.03%) declined.

The Reserve Bank of India (RBI) stated on 5 March 2018 that it will inject additional liquidity of Rs 1 lakh crore in banks through longer tenor instruments to enable flexibility towards meeting their fund needs. This measure is to address additional demand for liquidity and with a view to provide flexibility to the banking system in its liquidity management towards March-end, the central bank said. This will be in addition to normal liquidity adjustment facility operations.

Realty stocks gained. Oboroi Realty (up 1.78%), D B Realty (up 0.99%), DLF (up 0.81%), HDIL (up 0.53%), Godrej Properties (up 0.49%) and Indiabulls Real Estate (up 0.39%) edged higher. Prestige Estates Projects (down 2.5%), Sobha (down 0.08%) and Unitech (down 0.14%) declined.

Jain Irrigation Systems rose 2.2% at Rs 113.95 after the company said it won an integrated drip irrigation project worth Rs 287.66 crore. The announcement was made during trading hours today, 6 March 2018.

Overseas, Asian stocks rallied, tracking gains in the US and Europe in the last session as concerns over a potential trade war faded.

US stocks rose yesterday, 5 March 2018, erasing earlier losses, as worries about a potential trade war waned. US President Donald Trump announced tariffs on steel and aluminum that sparked fears of a trade war.

Today's Calls:

#Yesterday,  the following news was sent to the Premium Members that the stock of Reliance Infrastructure Ltd had not broken the support of Rs.427. You can add the scrip for a short term target of Rs.470..Today, the stock of Reliance Infrastructure Ltd has made an intraday high of Rs.645.30 in the NSE and is now trading at around Rs.544. 

#HDIL (Rs.46.7), has bounced from its support of  around Rs.46, however it has broken a two year old support at Rs.47. So, the best price to average would probably above Rs.47. Or only if it gives a closing above Rs.47. Moreover, the derivative contracts (FUTURE & OPTION..BOTH) "FORTIS, HDIL, IDBI & ORIENTBANK" have crossed 95% of the market-wide position limit and are currently in the ban period. 

#Intraday  Sell NIFTY FUTURE at around 10435, SL: 10455, T: 10390. Target achieved at 10390 ==> Book Complete Profit. Call Closed!!

#The stock of MCX Ltd (Rs.781) has given a break out. Keep holding with a SL of Rs.777. This is for those who bought  yesterday at around Rs.770.

#Profit Booking was suggested in the share of P C Jewelers Ltd at around  Rs.348.  Wait for the dips to enter.

#TV Vision Ltd (Rs.16) bounced from its support. You can accumulate keeping Rs.15.7 as  the Ultimate Stop  Loss.

#Sell TATA MOTORS FUTURES at around Rs.355; SL  above Rs.359; T: Rs. 349. BOOK PROFIT at around Rs.352.4. Call Closed!!

#Intraday BUY BPCL at around Rs.443, SL: Rs.439.75,  T:Rs.449. Book PARTIAL PROFIT at around Rs.445.50

Join the Premium Service or Trade through my recommended BROKERAGE HOUSE with a minimum portfolio size of Rs.3 lakhs (to get Premium Service Free of charge) to stay ahead of others. 

~~With inputs from Capital Market - Live News

P C Jeweller Ltd: Buy

CMP of Spot: Rs.332.35

Lot Size of Futures: 1500

CMP of March Futures : Rs.334.50

Premium: Rs.2.15

Change in OI: 3.91%

Short term Targets for Future: Rs.360/377

For Future-->S1, S2 and S3: Rs.327/Rs.321/Rs.315

For Future-->R1, R2 and R3: Rs.341/Rs.347/Rs.354

For Spot-->T1, T2 and T3: Rs.374/Rs.424/Rs.496

Triggers:

#PC Jeweller Limited started operations in April 2005 with one showroom at Karol Bagh, New Delhi and is today one of the fastest growing jewellery retail chain with 85 showrooms across 68 cities and 20 states. According to my sources, the company is planning to open 15 more retail counters across India.
Not only that: after lurking inflation fears in the US and meltdown of the real estate sector in India, followed by introduction of LTGT by the FM in this budget, people are shifting to gold. This is likely to keep the demand for Gold buoyant  in the coming months.

#Chief Financial Officer (CFO) of the company in an interview said that the company will stick to its strong fundamentals and their expansion plans are on track. He also clarified about having no business agreement with Vakrangee Ltd and that none of the company's promoters have sold any stake in the firm.

Vakrangee Ltd, a banking and financial services provider, on January 25, 2018 purchased 20 lakh shares of PC Jeweller Ltd for ~Rs.112 crore through an open market transaction.
The shares were acquired at an average price of Rs.561.71, which amounted to ~0.51% stake in the company. This price somewhat gives us the idea as to where the share price of P C Jewller Ltd can shoot in the short term. 

#The impact of Nirav Modi and Mehul Choksi scam though had been seen in stock price of many

Photo: Zee Business

jewelry firms on 16 February, '18, but PC Jeweller reversed the trend on that day and emerged as the top gainers in this sector. The share price of this company jumped by nearly 7% during the day.

#PC Jewellers Ltd also recently clarified that the company does not use the instruments of LUT/LOC etc in its business transactions. Moreover, it does not have any international transactions in diamond. It procures all its diamond from local markets on cash basis only.

#Though post Nirav Modi scam, bankers will become more alerted in terms of credit transfer, and considering the process of investigation, however for the companies like P C Jewelers Ltd fundamentals will speak and it will have minimal impact on getting loan from banks/financial institutions.
There is another silver lining too: according to Kotak Institutional Equities, exposure of 18 banks’ overall book (12 public sector banks and six private sector ones) to the gems and jewellery sector is only about 1% --- for now, the problem appears limited to PNB. Hence, there is no reason to get too much anxious on the credit delivery front by the banks to the Jewelry sector.

#It is pertinent to mention here that the stock of P C Jewelers Ltd fell from around Rs.580 - plus which is made in late January, 2018 and hence the change of appreciation from the CMP is very bright. It is also likely to benefit from dilution of Nirav Modi brand, due to elimination one of its major competitors in the gems and jewelry segment.

#The company stressed that it’s expansion plans are on track as planned. “We are moving ahead as per our laid down business plans of opening new stores and working on launching new collections. The company continues to witness very good footfalls and sales in this quarter as well,” it said in a clarification to the stock exchanges, early this month. PC Jeweller further said none of the company’s promoters has sold any stake in the firm (mentioned earlier) or pledged its shares as collateral with any institution. 

#With 60% of gold demand coming from rural India, the Union Budget’s focus on boosting rural and farm incomes could benefit big brands such as Titan Co Ltd and PC Jeweller Ltd. 

#There is a belief in the market that the implementation of the Goods and Services Tax (GST) has enhanced bullion purchases from organised vendors. The GST, touted as the country's biggest indirect-tax reform since Independence, introduced a 3% levy on gold from July 1, 2017 nudging customers to shift purchases to organised high-street bullion businesses from street-corner jewellers. In other words the retail jewellery segment is now witnessing a major shift of customers toward the organised players, and PCJ is a major beneficiary of the same.  The New Delhi-based Jeweler is therefore, expecting good growth in SSG (same stores sales growth) as well as in new stores segments. 

#Jewelry demand generally picks up a month before Dhanteras and continues till April-May every year due Festive and Wedding seasons; which keeps the demand for the yellow metal buoyant. Hence, going forward we could see robust performance of the company.

#The company is showing enviable performance during the last two quarters, viz.Q2FY18 and Q3FY18. PC Jeweller Ltd last month reported a 52% increase in its net profit at Rs.162.71 crore for quarter ended December on higher sales. The company, which has 84 retail jewellery stores across the country, had posted a net profit of Rs.106.97 crore in the year-ago period, the company. It is to be remembered that PC Jewellers Ltd posted a 40.83% jump in standalone net profit at Rs.150.59 crore for the quarter ended September on strong sales. Net profit was Rs.106.93 crore in the same period of the previous year.
The company said that the rollout of the goods and services tax (GST) as a very major structural change, has resulted in a major "disruption" for unorganised players in all the sectors of the economy. "Demonetisation and implementation of GST are helping us increase market share as the industry is getting organised," the company said in last November. Therefore, similar performance is likely to be exhibited in Q4FY18 too according to my sources, who refused to be named.

#Lastly, the story of investment in Gold is not Rich Vs Poor, as is commonly perceived but as a means or avenue to store wealth by a section of Indian population, especially the housewives -- and this has been going on since centuries. Hence, its demand as a hedge against inflation in the short term, in countries like UK, USA and India is expected to continue. 
2ndly, the branded jewelry stores are a play on India's ever growing retail sector, where I find immense potential after the government of India gave their consent for FDI in multi-brand retailing. 
Who knows, whether in future the International jewelry brands like Harry Winston, Cartier, Buccellati, Tiffany & Co, etc will partner with reputed Indian brands like P C Jeweller or not. If this happens then the stock of P C Jewelers Ltd might cross Rs.1000 (one thousand), as well. Also, it is worth mentioning here that Tiffany jewels are not only famous in America but now in Asia as well.

Bibliography:
i) The Economic Times
ii) Zee Business
iii) The Times of India
iv) The Hindu BusinessLine
v) Live Mint

Market Pulse

Key benchmark indices hovered in positive zone in morning trade after an initial upmove triggered by positive Asian stocks. At 11:50 IST, the barometer index, the S&P BSE Sensex, was seen at 34,061.22 up 241.72 points while the Nifty was trading at 10,466.80 up 84.1 Metal and mining stocks gained across the board. Telecom stocks rose.

Domestic stocks edged higher in early trade tracking positive Asian stocks.

The S&P BSE Mid-Cap index was up 0.95%. The S&P BSE Small-Cap index was up 0.96%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,548 shares rose and 565 shares fell. A total of 84 shares were unchanged.

Overseas, Asian stocks were trading higher as investors continue to debate the outlook for central bank policy normalization and the impact of higher bond yields. Meanwhile, Japan's core consumer price index rose for a 13th straight month in January, increasing by 0.9% from a year earlier, matching December's rate of growth, data from the Ministry of Internal Affairs and Communications showed today, 23 February 2018.

In US, the Dow and the S&P 500 closed higher while the Nasdaq slipped yesterday, 22 February 2018 as investors grappled with the threat from higher interest rates. On the data front, initial US jobless claims fell by 7,000 to 222,000 in the seven days ended 17 February 2018, marking the second lowest level since the end of the 2007-2009 recession.

Back home, Sun Pharmaceutical Industries (up 4.16%), Yes Bank (up 2.39%) and ICICI Bank (up 1.16%) edged higher from the Sensex pack.

Metal and mining stocks gained across the board. Vedanta (up 2.03%), JSW Steel (up 2.42%), Tata Steel (up 3.35%), Steel Authority of India (Sail) (up 3.01%), National Aluminium Company (up 2.15%), Hindustan Zinc (up 2.1%), Jindal Steel & Power (up 3.98%), Hindalco Industries (up 1.77%), NMDC (up 1.46%), Hindustan Copper (up 1.84%) edged higher.

Telecom stocks rose. Bharti Airtel (up 1.81%), Idea Cellular (up 0.55%), Tata Teleservices (Maharashtra) (up 1.15%) and Reliance Communications (up 0.91%) rose. MTNL (down 1.86%) fell.

Shares of Bharti Infratel fell 0.57%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

KSB Pumps gained 1.89% after net profit rose 21.1% to Rs 27.35 crore on 30.9% growth in net sales to Rs 328.19 crore in Q4 December 2017 over Q4 December 2016. KSB Pumps' board recommended dividend of Rs 6 per share for the year ended 31 December 2017. The results were announced after market hours yesterday, 22 February 2018.

Today's Calls:

#How many of you bought the shares of Reliance Infrastructure Ltd today morning at around Rs.444 reading my blog inputs.. Book some profit at around Rs.457 and wait for dips to enter.

#Buy beaten down P C Jewelers Ltd Futures at around Rs.333.15 for a short term target of Rs.377, SL: Rs.326. This stock will give up super duper returns in the short term.

It is pertinent to mention here that the stock of P C Jewelers Ltd fell from around Rs.580 - plus which is made in late January, 2018. However, it will benefit from dilution of Nirav Modi brand, due to elimination one of its major competitors in the gems and jewelry segment.  Moreover, on January 25, 2018 Vakrangee bought 20,00,000 shares of PC Jeweller at Rs.561.71 on the NSE. Earlier, the Delhi-based jewelry retailer PC Jewellers Ltd, denied that there was any reason for having worries that the company may be linked with Vakrangee, another firm that is under the scanner for allegedly manipulating its own stock. Investors were worried because Vakrangee has a tiny stake in PC Jeweler. Also, the company’s finance head Sanjeev Bhatia came on TV at the beginning of this month and said: “We have no business agreement with Vakrangee and none of our promoters have sold any stake in the firm. Besides, With 60% of gold demand coming from rural India, the budget’s focus on boosting rural and farm incomes could benefit companies such as Titan Co Ltd., Tribhovandas Bhimji Zaveri Ltd., PC Jeweller Ltd.

#Those who are holding the shares of 3i Infotech Ltd (Rs.5.65) should wait for the scrip to give a closing above Rs.6.30 to take fresh positions. This is a wonderful company and long term investors would definitely get benefited.

#Those who are holding the shares of Housing Development & Infrastructure Ltd (HDIL, CMP: Rs.49.90) should add the scrip on every decline with a SL at Rs.47. It is good that it is out of the F&O basket, due to obvious reasons. Now we can look for targets of Rs.91-97-121 in the coming days. Remain invested and average on every dip.

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

Jewelers in India Jump Online for $22 Billion E-Commerce Pie

[Editor: In this connection, I suggest you buy in bulk the shares of Gitanjali Gems Ltd at around Rs.47 and keep holding. 

Also, I hope you have already taken position in the hidden gem, Jaiprakash Power Ventures Ltd (Rs.11.10) after lot of positive developments in the company. Now if the things go as per schedule, then the scrip could even touch the all time high of Rs.70 Plus. However, for the moment the target is Rs.22, which I feel is easily achievable. Meanwhile, yesterday's call Elecon Engineering Co Ltd (Rs.68.50) at around Rs.59.30 is up more than 15 % today. Those Premium (Paid) Members, who bought me, say Cheers!!]
March 17, 2015: In India, where buying gold traditionally means a trip to the trusted family jeweler, a growing e-commerce market forecast at $22 billion in three years is starting to challenge all conventional wisdom.

Gitanjali Gems Ltd., India’s biggest diamond and gold jewelry retailer, expects online sales to account for much as 20 percent of its sales in two to three years from about 1 percent now. The growth potential convinced Ratan Tata, former chairman of the Tata Group, to invest in Bangalore-based online jewelry store BlueStone last year.

Jewelers are tying up with Amazon.com Inc., Flipkart Online Services Pvt. and Ebay Inc. after the government last year eased import curbs on gold bars and coins. The total online retail market in India will be about $6 billion this year, driven by free delivery and heavy discounting, Gartner Inc. estimates. That may grow to $22 billion by 2018, CLSA Asia Pacific Markets predicts.

“Indian consumers prefer to touch and feel the jewelry before buying, but the change in consumer behavior will happen quite fast,” Gitanjali’s Chairman Mehul Choksi said in a phone interview. ‘We have tied up with all the major online platforms and we are always looking for more tie-ups.’’

Gitanjali, which sells its diamond and gold jewelry through more than 4,000 points of sales spread across India, the U.S., the Middle East and Europe, uses a battery of Bollywood actors including Shah Rukh Khan and Katrina Kaif as brand ambassadors.

Offering Convenience

The Mumbai-based company, whose sales declined 24 percent to 124.36 billion rupees ($2 billion) in the year through March 2014 because of import restrictions, now retails through platforms including Amazon.com, Flipkart.com, EBay, and Jewelsouk, Choksi said.

Established retailers are looking at online stores already selling jewelry, besides promoting their own, according to Gaurav Singh Kushwaha, founder and chief executive officer of BlueStone, which sells everything from solitaires, rings, earrings, pendants, bangles and bracelets.

“Online retailing offers convenience from the comforts of an individual’s home and moreover allows other incentives like giving them time to decide, not make it obligatory for customers to purchase at their very first visit,” Kushwaha said. “Offline jewelers realize the potential and the need for being present online.”

The online jewelry market may be worth as much as $2.5 billion in the next five to 10 years, BlueStone estimates. Currently it accounts for less than 0.1 percent of the $55 billion jewelry market, it says.

Topping China

Indians bought 662 metric tons of gold jewelry valued at $26.9 billion in 2014, the most since 1995, the World Gold Council said last month. Total demand including for gold bars and coins was 842.7 tons, helping India surpass China as the world’s largest consumer last year, the council said.

Bullion demand is seen expanding this year to between 900 tons to 1,000 tons, the council says. Bullion is bought in India during festivals and marriages as part of the bridal trousseau or gifted in the form of jewelry by relatives.

Shares of some Indian jewelers have advanced after the government relaxed most restrictions on imports. Titan Co., the biggest by market value, has rallied 60 percent in the past year, compared with a 32 percent gain in the benchmark S&P BSE Sensex. PC Jeweller Ltd. more than tripled in the same period, while Gitanjali declined 22 percent.

The online market allows companies to offer customers a wider choice of designs without actually keeping physical stocks, said Rajeev Sheth, chairman of Tara Jewels Ltd., which began selling through Amazon starting December.

Global Trends

“The major driver for getting jewelry online is changing consumer behavior, especially of young Indian women, who are exposed to global trends and are increasingly shopping online,” Sheth said.

Earlier this month, New Delhi-based PC Jeweller tied up with U.S.-based online jeweler Blue Nile to evaluate the Indian market for potential sales in the long term. The jeweler plans to develop its own website to replicate the comfort and convenience associated with shopping at its luxury showrooms, it said March 4.

Titan may buy a stake in Chennai-based online jewelry retailer Caratlane, which counts Tiger Global Management LLC as its investor, the Economic Times newspaper reported last month. The jeweler said the report was “speculative in nature.”

Titan, founded by the Tata Group, currently sells its jewelry on its website besides its nationwide network of retail outlets.

Kushwaha, who started BlueStone in 2011, says building trust in an industry dominated by traditional retailers has been the biggest challenge so far.

Along with Caratlane, BlueStone offers customers jewelry of their choice delivered at home for trial at no cost.

“We understand the concerns of a first time online jewelry shopper and our ‘Home Try-on’ service is designed to help address them,” he said.

Courtesy: Bloomberg

WINNING STROKES: THINK DIFFERENT

Glodyne Technoserve Ltd hit another buyer at Rs.7.61 in the BSE as expected. The scrip as I mentioned earlier, should be moving towards Rs.14-15-17 in the coming days. The company is thinking of selling some of its assets to reduce the debts. It is still receiving money from the government contracts, however, the delays in the government policy decisions in relations to UID linkage to its social benefits projects such as NREGA which made its investments in the large size contracts idle and non return yielding for a longer period of time. The Company had already invested in the Capex and Opex for such projects and the returns from the projects were expected over a period of time. Annand Sarnaaik, the Chairman and Managing Director of Glodyne Technoserve Ltd, had already sent out an emotional appeal of sort to reach out to his well-wishers. He says, "Even though the times are extremely testing, I along with my co promoters and the team have been working relentlessly and with the same passion to make sure that the Company comes out of the adversities. Glodyne has been our life and we have built this Company out of all our personal investments and have always put the Company’s interest ahead of any personal interests. We have in fact put everything personal at stakes for the Company because we believe in the Company". Therefore, him and his team, work in such a way, that benefits trickle down to the kitty of the shareholders. What I want to see is solid results and not plane smooth talks which have been going on since the last one and half years.  

The Jewelry Stock continued their upmove today. My recommended P C Jewelers Ltd almost reached the 5th target, as it touched 101.90 (~Rs.102), intra-day before cooling down at Rs.99.70. Shree Ganesh Jewelry House (I) Ltd also moved up to Rs.28.80 before settling at Rs.28.25. The Jewelry stocks would continue to do well, as the government is bound to cut the import duty on Gold. Moreover, the demand for Gold has only increased during the last few months, so in any case, the jewelry companies, are bound to perform well. If you have still not entered the counter, please do buy some shares and keep  holding. Once it gets the nod on CDR package, it will start its expansion projects. 

Entegra Ltd today moved to Rs.3.89 and closed there, indicating further bullishness for the scrip. I had already strongly recommended to buy the scrip and keep holding. Going forward the Company has set up a strategy in place to aggressively market its Renewable Energy expertise for Wind, Solar and Hydro Projects on a pan India basis in FY 2013-2014. The Company will also be focusing on acquiring assignments for developing Energy parks and participating in projects focusing on Rural Electrification. The company also plans to expand its outreach of Solar and Hydro Power and increase its capacity generation in both arenas. During the current year 2013-2014, Company proposes to take forward 50 MW Photovoltaic plant in Rajasthan in order to increase the output of renewable energy and capitalise on the potential of solar power generation in the state and is in the process of tapping solar water heating systems and roof-top Photovoltaic projects in the MMR and NCR regions in Delhi among both, residential and commercial establishments.

WINNING STROKES: THINK DIFFERENT

Entegra Ltd today touched the upper circuits at Rs.3.89, before setting at Rs.3.73, up 0.54%, in a day when the Sensex tanked 186.33 points. Invest at least 50% of your capital and keep holding. 

Glodyne Technoserve Ltd where a buy was given a couple of days back, hit another buyer freeze today. It seems the scrip would now steadily move to Rs.14-15, where you can book profits. 

Most of the Jewelry stocks were up today. Meanwhile P C Jeweler Ltd hit the 4th target of Rs.97, as it touched Rs.98.05 intra-day. I hope most of you have made money in this scrip. In the same way, Shree Ganesh Jewelry House (I) Ltd closed at Rs.27.70, which is near the day's high of Rs.27.90, indicating bullishness in the scrip. The government is likely to cut, 2% import duty on gold by the end of this month. However, when the demand for gold is so high in the domestic market, the Gold Jewelry stocks would continue to outperform the broader markets. Shree Ganesh Jewelers Ltd is expected to be star performer, as it has taken some special measures to focus more on the export market. 

Today a buy call was given on Opto Circuits Ltd at Rs.26, the scrip closed at Rs.26.10, after touching a high of Rs.26.75. Also, a SELL call was given on HINDALCO Ltd_Feb26_Futures at Rs.98, with a target of Rs.93. The scrip today closed at Rs.97.40 in the NSE derivative segment. 

WINNING STROKES: THINK DIFFERENT

P C Jewelers Ltd today touched Rs.94.90, intra-day before cooling down at Rs.93.95.  I had already given a target of Rs.102-103 for the scrip in the short term. In the same way, Shree Ganesh Jewelry House (I) Ltd today touched Rs.28, before cooling down at Rs.26.95. Gitanjali Gems Ltd touched Rs.65.75 before closing at Rs.64.25. All these Jewelry companies came out with satisfactory set of numbers for the Q3FY14. You just need to buy and keep holding, till they are near their targets--please don't trade.  March, 2014 is very near and the government of India,  is likely to relax the import restrictions on Gold. However, more than all those tall talks of reducing fiscal deficits through curtailing gold imports, it seems there are other reasons for the keeping the restriction in Gold Import intact. DNA India, on 16 February, 2014, writes: "As a result the biggest beneficiaries will now be politicians and other powerful people who want to convert their ill-gotten gains held in dollars into rupees just before elections. In fact, as this column has argued, what matters is not the CAD, but the manner in which fiscal policies are managed". Therefore, these Gold Jewelry companies are expected to do well in the coming days. Shree Ganesh Jewelery House (I) Ltd is also into Gold Refining, Mining and Gold Loan--buy as much as possible and keep holding. 

Entegra Ltd (Rs.3.71), has again started to move up. You need to invest 50% of  your present capital in the scrip and keep holding. This scrip would double your investments in just 4-5 months time frame. 

Yesterday, a buy call was initiated on Glodyne Technoserve Ltd at Rs.6.70, saying it would not break the support of Rs.6.70-6.50, because of some news which I received from my close sources. Today the scrip hit the Upper Circuits in the BSE. I am expecting a short term target of Rs.14-15 for the scrip.  

BHEL was given a buy yesterday, with a target price of Rs.154. Yesterday, it touched Rs.151 and today it touched Rs.152.25. I hope those who were long on Nifty_Futures certainly made money during the last couple of days. 

Join my recommended brokerage house/s or my Paid Service to be ahead of others. If you join my recommended brokreage house and trade through them you get Paid Service Free of Charge. Also, you can look for target oriented trades. Cover your losses through some correct trades. For more you can visit: sumanm2007s@gmail.com. Also, you can join my Free Facebook Groups and also join me on Twitter (ID: suman2009s). The Paid Blog is more or less regularly updated. 

WINNING STROKES: THINK DIFFERENT

The Indices as expected took a support around 5970-6000 ranges as the bulls bounced back with full vengeance. The Nifty (spot) safely closed at 6048.35 above the crucial support of 6045. Those Paid Members who took long positions in Nifty today, should continue to hold on to their positions. I shall mention the level in the Sunday's inputs. 

Today, P C Jeweler Ltd achieved the 3rd target of Rs.91, as the share touched Rs.92, intra-day, where the Paid Members were asked to book profits in today, in the inputs sent in the Paid Blog. Meanwhile, Shree Ganesh Jewelers Ltd opened Rs.28.90 before closing at Rs.27.50. The company as expected came out with superb set of numbers for the December, 2013 quarters. The net profit of the company came as Rs.341.48 Cr as against Rs.58.81 Cr in the same period previous year. The EPS of the company for December, 2013 quarter is Rs.16.32. Now since, the loss in Q3FY14, was one time, the company's share price is expected to shoot up from here. I had earlier repeatedly asked the investors to increase their holdings in the counter, in view of the expected positive results from the company. The company is having a gold refining unit, and hence it can import DORE gold to reduce the cost of their exports. Moreover, the PBT, which took a hit due to higher interest of Rs.86 Cr as against Rs.52.73 Cr in Q3FY14 is expected to come down from Q1FY15 drastically as the company this month is likely to get a nod from the consortium of bank for the restructuring of its loans. Once this is done, the company's expansion would pick up steam, for the reasons best known to all. Next the company could be looking for either direct purchase of shares from the market or for a preference issue or avoid a hostile take over by a rival group. 

The dishonest promoters of Glodyne Technoserve Ltd (Rs.7.18) came out with a clarification today: "The Company has been facing certain financial difficulties due to which there are defaults / delays in payments to banks / lenders, which has already been disclosed and reported in the annual report of the Company. The Company and its management have been working on the revival of the projects and also in discussion with some of lenders for overcoming the financial position." The point is that the promoters took loan, keeping their shares as pledged, so how did the sudden financial problem start in the listed company? How isthe loan taken by the promoters in their personal capacity related with the default of loans, by Glodyne Technology Ltd? I would be obliged if any noted analyst explains this to me!! Also, what about their tall talks of a large order? There should be a limit to "Thuggery and Cheating" by the "Corporate Burglars". The share price has fallen from Rs.1250 plus in 2010-2011 to the current price of Rs.7.18. If the promoters had a little shame, they would have step down and allowed some able person to take over the company. But alas!! Also, why till now, they have not approached the CDR cell of the Financial Institutions, when companies like Suzlon Energy Ltd having a debt of more than Rs.10, 000 Cr approached the banks to get their loans restructured ? This means there could be something the promoters are hiding even today or the money from the overseas subsidiaries are directly going to the "Banami" bank accounts of the promoters, who took loan keeping their shares as pledged. The regulators should thoroughly investigate the matter and take suitable actions, so that the promoters who misled the shareholders do not escape like it happened in case of Pyramid Saimira Theatres Ltd. A full team should investigate their books, like it was done in case of Satyam Computers Ltd and truth, should be extracted. Some of the thieves in the India Inc are spoiling the whole ambiance of the equity markets and therefore, it is high time that the regulators, trace them out and throw them out  of the ring. The same yard stick should be applied in case of another  IT Company, Allied Digital Services Ltd (Rs.13.05). Nitin Shah one of the promoters of the company, is often seen hopping from one programme to another showing his smiling face, while the shareholders have been suffering since last 2-3 years. This fellow does not even feel shame, to  take part in a Television Programme, where he was pitted against young aspirants. The program's format was probably set before hand, to give this old hunk an undue advantage against the young participants. The regulators should do a thorough investigation of the bank accounts of Nitin Shah and his cohorts, so that their evil deeds (if any) gets exposed. The fact of the matter is that when he can take his remuneration and can pay his employees salaries for years, then what is preventing him to declare dividends for the shareholders, except the intention of LOOTING? These people have not only spoiled the mood of the markets but also Banks, whose balance sheets are bleeding, as stilll the outstanding loans to be restructured, are substantially large. 
A Buy call was initiated in Steel Authority of India Ltd at Rs.60.80. The scrip closed at Rs.61.45, after touching Rs.62.05. Those who had bought above Rs.63, were also asked to average out. 

WINNING STROKES: THINK DIFFERENT

As expected markets came down to 6001.10, after 6070 was broken on the downside. Earlier, the advance of the markets looked like a   pull back and so, I was a bit apprehensive. The movements of the markets could at least be predicted this time, more or less. I hope those who had taken Nifty_6000_puts on breaking of 6070 might have made a good amount of money. Anyway. on the downside 5970 will again act as a strong support, where you should pick up Nifty_Futures (I mean corresponding to the spot levels of 5970) for a target of 6100 again on Nifty_Spot. The FIIs  have turned buyers today of Indian Equities to the tune of Rs.399.4 Cr, though as usual DIIs turned net sellers. Keep away from the Bank and NBFC Stocks, as would continue to under-perform for some more time. Today Manappuram Finance Ltd (Rs.21.90) crashed 10.25 on the bourses. At one time it kissed Rs.21.60 on the downside, intra-day. 

Today Jewelry stock did well in the bourses. My recommended P C Jewelers Ltd crossed its 2nd target of Rs.88, and touched Rs.88.60 intra-day. Other two of my recommended counters Shree Ganesh Jewelry House (I) Ltd (Rs.26.35) touched Rs.27 while Gitanjali Gems Ltd (Rs.63.60) touched Rs.65, intra-day. Meanwhile, Shree Ganesh Jewellery House (I) Ltd informed BSE that in terms of Articles of Association of Company, Export-Import Bank of India (EXIM Bank) has nominated Mr. Lokesh Kumar, as their nominee on the Board of Directors of the Company w.e.f. January 29, 2014. The Board has noted the same in their meeting held February 13, 2014. Both the companies are coming up with results tomorrow. The optimism has increased among the shareholders, following, good Q3FY14 results coming from P C Jeweler Ltd. 

Glodyne Technoserve Ltd came out with SHOCKING Q3FY14 numbers and I feel the regulators should do something to protect the shareholders from these kinds of PREDATORY promoters. The company's net sales for the Q3FY14 quarter nosedived to Rs.10.50 Cr, as against Rs.272.08 Cr in the same period previous year. Will anyone believe? This happened inspite of the CMD of the company Annand Sarnaaik, beat the drums in one of his interactions with ET Now that million of dollars is likely to flow from the acquisition of DecisionOne, a US-based IT firm promoted by a clutch of private equity investors, for around $104 million, (Rs.649.06 Cr, considering 1 $ ~Rs.62.41) in the next five years. Where are those so-called funds going? How is that after the lenders starting invoking / selling the promoters' holding, the quarterly results started to become worse and worse? What is the relation between the two? The promoters have pledged the shares in their own capacity, so does it mean that the profits from their US subsidiary should go to the personal accounts of the promoters? Then who told them to buy DecisonOne? The  net loss in Q3FY14 came as Rs.95.37 Cr as against Rs.29.54 Cr in the same quarter previous year. Now what is interesting is that, Annand Sarnaaik also talked of margin expansion in that video (presented below), but in Q3FY14, the OPM stood at (-) 585.28% while NPM came as (-) 908.06%.  What happened to his tall rhetoric?  The government authorities, should now file a CRIMINAL case against the CMD of the company at least U/S 415 and 420 of the Indian Penal Code (IPC), for misleading the shareholders, so that he steps down and a new management takes over. Or else I feel the pains of the shareholders would not come down so easily, as the promoters could be siphoning off the funds from the company, to buy the shares which were sold or invoked by the lenders in "BENAMI" accounts. The promoters are dishonest and cannot be believed. If the regulators still do not take strict action against the promoters, then I feel there is no use of having SEBI or such organizations at all in India. The small investors are at the receiving end, some having bought the shares from levels of around Rs.100 plus, while the company continues to play games. Unfortunate!! 

Entegra Ltd today closed at Rs.3.66. The investors should accumulate the scrip on all declines. The government of India in the last bugdet had introduced some favourable policies for the renewable energy industry. A large domestic manufacturing base has been established in the country for renewable energy systems and products. Companies investing in these technologies are eligible for fiscal incentives, tax holidays and depreciation allowance apart from the remunerative returns for the power fed into the grid. Further, the government is encouraging foreign investors to set up renewable power projects with 100 per cent foreign direct investment. Over the next few years, decentralised distributed renewable energy based initiatives of communities is likely to make a profound impact in some areas. Furthermore, with well developed industrial, financing and business infrastructure, India is perceived as an excellent country for developing Clean Development Mechanism (CDM) projects. Currently, with 789 projects out of 938 projects, renewable energy projects constitutes largest share in the registered CDM projects. In order to reduce transaction cost and develop a framework for larger CDM portfolio, the Ministry developed a framework for renewables under CDM Programme of Activities. In the ensuring Union Budget (Vote-on- Accounts) the government is expected to continue with its efforts to give adequate concecssions to this sector. . 

Business Overview (Entegra Ltd): 

The Company is a pioneer in Renewable Energy in India with an integrated approach towards Hydro and solar (thermal & photovoltaic) energy and customised renewable energy solutions.

a) Hydel Projects: The 400 MW Maheshwar Hydro Power Project:

The Company’s prestigious clean and green 400 MW hydro-electric Project, the Maheshwar Project is slated to commence commercial operations shortly. With the distribution of awards and minor pending R&R work in few villages, the three Turbines can commence Revenue generation by Q4FY13. The Project has a 35 year power purchase agreement (PPA) with the Government of Madhya Pradesh wherein, the entire power generated from the project, which would be approximately 1226 million units would be sold to the Madhya Pradesh Electricity Board. The project is being implemented through its subsidiary - Shree Maheshwar Hydel Power Corporation Ltd. (SMHPCL). The payment from MPEB is backed by Letter of Credit from State Bank of India, Escrow Account and Guarantee from Madhya Pradesh State Government and the project is to be commissioned in 2013-2014 in a phased manner.

b) Solar Projects / Wind Projects:

The year 2012-2013 has seen the successful implementation and completion of some prestigious Wind and Solar Projects

which include the following:

1. A wind-solar hybrid system consisting of 1.8 kWp x 3 wind turbines and 1.2kWp x 3 photo-voltaic systems totalling 9 kWp has been commissioned at the President’s Estate, New Delhi.

2. The Supply and Installation of Solar Water Heaters at Raj Bhawan, Dehradun and Nainital with a total capacity of

3900 LPD.

c) Services:

The Company has also played an instrumental role in the supply and installation of Solar Water Heaters at various locations across NCR for private consumption. Given the accelerated focus on the renewable energy space and its growing importance as being an intrinsic part of the power requirements of the country, the Company continues to focus on exploring various opportunities providing innovative and modern renewable energy solutions and extending its various services in the Solar-Wind arena for Government, Commercial and Private operations.

Future Plans:

• The Company proposes to install a 50 MW Photovoltaic plant in Rajasthan in order to increase the output of renewable energy and capitalise on the potential of solar power generation in the state.

•The Company is in the process of tapping solar water heating systems and roof-top Photovoltaic projects in the MMR and NCR regions in Delhi among both, residential and commercial establishments.

India is the second most highly targeted country on a global basis, after the United States, with outside investors targeting local partners in order to be able to enter the market. The renewable energy sector has massive potential and efforts to tap the country’s vast resources are now gaining momentum. Thanks to the high demand in power that is being backed by a plethora of attractive government incentives, renewable purchase obligations, tax holidays and grid based incentives, the interest in the renewable energy business in the country has reached new heights. Despite 100% foreign direct investment allowed in power projects, The National Action Plan on Climate Change (NAPCC) has set an ambitious goal of a one per cent annual increase in renewable energy generation. The cost of power generation is going up for projects based on fossil fuels and that of renewable energy sources is coming down. The Jawaharlal Nehru National Solar Mission (JNNSM) is a transformational initiative for solar energy development in

India. The mission targets to propel India as a solar hub with 20 GW of grid connected solar power capacity by 2022.

Furthermore, the Government of India has come up with a Rooftop PV and Small Solar Generation Programme. There have

also been new tariff-based incentives for solar photovoltaic-based power generation, announced recently by the new and

renewable energy ministry.

Also, a solar manufacturing industry has developed for the manufacturing of solar cells which are made into modules (capacity

of 2,0000 MW for modules and 1,000 MW for cells). A large EPC industry has also emerged wherein a number of companies are now building solar power projects for others. There is also an impetus to explore the development of solar farms, particularly in the southern states, as their industrial units are short of power. There is a huge growth potential in these markets as they are in their nascent stage of development.

A movement called “social solar” is also gaining momentum at grassroots level in an effort to empower rural India with the introduction of smaller, inexpensive solar projects that can power villages. Solar power water pumps to aid agricultural production and solar powered cookers for community cooking are also been introduced. The Government has also come up with generation-based incentives for wind energy projects. The Government had introduced a generation-based incentive (GBI) which provides monetary benefit on every unit generated to companies that consider generation of electricity as their business. The wind power will get Rs 0.50 a unit of electricity as incentive up to a ceiling of Rs.1 crore a MW. I am expecting this scrip to cover all your future losses. 

WINNING STROKES: THINK DIFFERENT

Worli (Mumbai ) Projectof Entegra Ltd

Entegra Ltd (Rs.3.71) and Southern Ispat and Power Ltd (Rs.2.47) hit the Upper Circuits in the mid afternoon trade. Entegra Ltd should cover up your 100% losses you made in the markets. Just buy and keep holding. It is from the S Kumars' Group and has a high pedigree. Entegra Limited is a new age enterprise founded by Mr. Mukul Kasliwal in 1995. The controlling shareholder of Entegra Ltd is MW Corp (P) Ltd, which is promoted by the Kasliwal brothers, Mr. Mukul Kasliwal and Mr. Warij Kasliwal, members of the Kasliwal family (promoters of the erstwhile S.Kumars Group). MW Corp (P) Ltd is a holding company with well diversified business interests across verticals such as Textiles, Renewable Energy and Infrastructure Development. Major companies under MW Corp are:

• S.Kumars Ltd, one of India’s foremost Textile Companies.
• Entegra Ltd, a fully integrated Renewable Energy Company.
• SMHPCL, which is currently implementing an INR 39.39 billion ($ 875.25 million), run-of-the-river 400 MW Maheshwar Project - India’s first privately promoted Hydel Power Project.

Entegra has introduced two branded services with a compelling market-oriented strategy through its comprehensive green energy portfolio of services: 

• EnnerGreen Resources – this brand is focussed on setting up green power plants and generating clean energy, from sources such as sun and water. 
• EnnerGreen Solutions – this brand is engaged in providing integrated renewable energy solutions, products and services to create eco-friendly sustainable options for our customers at a domestic, commercial and industrial scale.

Also, why some of you bother so much about the volume of the scrip, unless  you are a large Mutual Fund? It seems some of you cannot think beyond your cloak! It is to be understood that less volume also indicates that shareholders are not willing to sell their shares at this price and is expected higher returns in the coming days. Also, sometimes high volume indicates the operators are getting out of the scrip. Therefore, why less volume always has to be taken in the negative context? However, Southern Ispat and Power Ltd is a speculative buy and therefore, caution should be exercised unless Rs.3 is crossed decisively. 

Most of the Jewellery Stocks today moved up following lot of speculation that the government of India would soon bring in some relaxations in the import duty on Gold. Shree Ganesh Jewelers Ltd (Rs.25.75) touched Rs.26.40, P C Jewler Ltd (Rs.77.70) touched Rs.78.80, while Gitanjali Gems Ltd (Rs.63.55) touched Rs.64.85, intra-day. These stocks would give you rock solid returns going forward, especially if NDA government comes to power, because Gujarat is the hub of the diamond Industry in India. Buy, anyone or all of them and keep holding for few weeks to get golden returns. 

As expected Allied Digital Services Ltd (Rs.13.71) hit the buyer freeze in the opening trade. The scrip should now hit some  more continuous buyer freezes on its way to Rs.21-22. The scrip has a book value of Rs.146.62 and market cap of only Rs.63.32 Cr. The company therefore cannot trade at this price---even the value of its assets will be more than Rs.50 Crores, forget the business of the company, which  you are getting free.  The company's business in cloud computing is slowly picking up and it recently obtained a big project. You should accumulate the scrip on all declines. However, if you are not able to get it tomorrow (if it becomes only buyer in the opening trade) then try another of those momentum counters, Glodyne Technoserve Ltd (Rs.7.85), which is also, slowly limping back to normalcy. The book value of the shares of Glodyne Tech Ltd is Rs.180.27, which around 23 times the current price of the shares of the company. Therefore, go for daily accumulation of the shares of the company on all declines.  The CMD of both the companies are astute businessmen, and hence it is only time that the scrips would again cross Rs.50 first and then Rs.100 within a few months.

The Nifty has got a strong support around 5970 mark, which is expected to be honoured in this week. However, the action would be shifted to small and mid cap counters. I will soon disclose the name of a stock to the Premium Group members which could give superb returns if the name of Mr.Chandra Babu Naidu, as the stand by Prime Ministerial Candidate gains more currency, in the coming days. Also, now the stock exchanges should remove this 5% circuit limit for most of the momentum counters in small and mid cap space, so that these scrips can move up fast and catch their large cap counter parts, in terms of valuations. 

Join my recommended brokerage house/s or my Paid Service to stay ahead of others. Also, allow your funds to be managed by experts so that you can cover up most of the losses, you incurrred during the last few years. If you are interested in joining my recommended Brokerage House /s or my Premium Service, then you  need to send me a mail at: suman2005s@rediffmail.com. If your portfolio is of value of more than Rs.1 lakhs, and you are trading through my Brokerage Terminal, then you would get Premium Service Free of Charge. This is the golden chance to make up for any loss you made in the markets. 

Sensex slumps as emerging market stocks fall

[Editor: Mr. P Chidambaram hikes import duty in Gold, by 5 times, in  around a couple of years and then asks the Jewelers to export through 80:20 scheme......this is Chidambaronomics......Huh!! What a logic? How can the exporters remain competitive in the international market, when they have  to take care of a such sudden spike in import duty apart from other burning factors? His policies fails and so his ministry decides to victimize a sector....Wow!! The government raised the import duty on gold to 10% in 2013 from 2% in 2012 to rein in its ballooning current-account deficit. Gold supplies have also dried up because the central bank has mandated that importers prove that they will keep aside 20% of any imported gold for re-export as jewelry. Gold is the country's second-biggest imported commodity after crude oil.
So, the point is that why he does not apply the same logic in case of CRUDE OIL which is the highest import item in India and which is being used by both rich and poor? 
The reasons are well known and why he choose Gold over Crude Oil. But there is something called vote bank, and the elections are near---those workers whose livelihood has been spoiled by this mindless act, will perhaps show their anger in ballot boxes all over India. Also, what will the smaller companies who do not have gold refining units like Shree Ganesh Jewellery House (I) Ltd do....? Fortunately, for Shree Ganesh Jewellery House (I) Ltd, their gold refinery unit in Domjur, West Bengal, has started production. The relaxations of import restrictions on DORE GOLD is for whom....? To give more business to the established players or to squeeze the margins of the smaller players....?]

Key benchmark indices slumped on the first trading session of the week as emerging-market stocks fell and currencies weakened amid concern that slower Chinese growth and reduced Federal Reserve stimulus will spark more capital outflows. In recent years, emerging markets have been supported by the Fed's policy of easy money, but any cut could pull more money out of these risky markets and hurt growth. The rupee's weakness against the dollar also hit investor sentiment adversely. The barometer index, the S&P BSE Sensex, fell below the psychological 21,000 mark. The Sensex hit its lowest level in almost 3 weeks. The 50-unit CNX Nifty hit 8-1/2-week low. The Sensex plunged 426.11 points or 2.02%, up close to 20 points from the day's low and off about 190 points from the day's high.

Today's decline on the domestic bourses was broad based. The market breadth indicating the overall health of the market was quite weak with more than three losers for every gainer on BSE. Small-Cap and Mid-Cap indices witnessed an even sharper slide. The BSE Mid-Cap index lost 2.82%. The Small-Cap index shed 2.64%.

Indian stocks fell for the second day in a row today, 27 January 2014. From a recent high of 21373.66 on 23 January 2014, the Sensex has declined 666.21 points or 3.11% in two trading sessions. The Sensex has fallen 463.23 points or 2.18% in this month so far (till 27 January 2014). From a record high of 21,483.74 on 9 December 2013, the Sensex has declined 776.29 points or 3.61%. From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,258.74 points or 18.67%.

Emerging-market stocks fell amid concern that slower Chinese growth and reduced Federal Reserve stimulus will spark more capital outflows. The start of a fresh week offered no reprieve in the shakeouts for key emerging-markets currencies Monday, with the Turkish lira extending its record-breaking slide, South Africa's rand wilting further and other markets caught in the rush to safety. A mix of local emerging-market strains, nerves over the fallout from the US Federal Reserve's plans to reel in monetary stimulus and patches of weak economic data from China have caused investors to pull back from riskier bets in recent trading days. On Friday, that morphed from localized selloffs to a broad flight to safety a pattern that is now persisting.

Shares of FMCG major Hindustan Unilever (HUL) rose after the company announced its Q3 results. Reliance Industries (RIL) dropped in volatile trade. Capital goods stocks edged lower. Bank stocks declined ahead of the Reserve Bank of India (RBI) Third Quarter Review of Monetary Policy for 2013-14 tomorrow, 28 January 2014.

The market sentiment was hit adversely by data showing that foreign funds were net sellers of Indian stocks on Friday, 24 January 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 200.60 crore into the secondary equity markets on Friday, 24 January 2014, as per the data from the Securities & Exchange Board of India (Sebi).

The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month January 2014 series to February 2014 series. The January 2014 F&O contracts expire on Thursday, 30 January 2014.

The S&P BSE Sensex plunged 426.11 points or 2.02% to settle at 20,707.45, its lowest closing level since 7 January 2014. The index plunged 445.53 points at the day's low of 20,688.03 in late trade. The index fell 234.53 points at the day's high of 20,899.03 in early trade.

The CNX Nifty plunged 130.90 points or 2.09% to settle at 6,135.85, its lowest closing level since 28 November 2013. The index hit a low of 6,130.25 and a high of 6,188.55 in intraday trade.

The BSE Mid-Cap index shed 181.82 points or 2.82% to settle at 6,273.44. The Small-Cap index lost 170.06 points or 2.64% at 6,274.40. Both these indices underperformed the Sensex.

Jaiprakash Power Ventures (down 13.06%), HDIL (down 12.9%), GMR Infrastructure (down 11.65%), IRB Infrastructure Developers (down 10.34%), Dewan Housing Finance Corporation (down 10.3%), Indiabulls Real Estate (down 8.82%), Allahabad Bank (down 8.52%), UCO Bank (down 8.23%), Coromandel International (down 8.44%), Unitech (down 8.21%), TV 18 Broadcast (down 7.95%) and JSW Energy (down 8.04%) were among the major losers from the BSE Mid-Cap index.

Dishman Pharmaceuticals and Chemicals (down 13.63%), Astra Microwave Products (down 13.61%), HeidelbergCement India (down 10.28%), ABG Shipyard (down 9.32%), REI Agro (down 9.1%), Gujarat Natural Resources (down 8.44%), Eros International Media (down 8.64%), Suven Life Sciences (down 7.71%), Infinite Computer Solutions (India) (down 7.74%) and JSW Holdings (down 8.14%) were among the major losers from the BSE Small-Cap index.

All the sectoral indices on BSE were in the red. The S&P BSE Realty index (down 6.82%), the S&P BSE Capital Goods index (down 2.7%), the S&P BSE Power index (down 3.01%), the S&P BSE Bankex index (down 3.97%), the BSE PSU index (down 2.71%), the S&P BSE Oil & Gas index (down 2.37%), the S&P BSE Metal index (down 3.81%) and the S&P BSE Auto index (down 3.33%) underperformed the Sensex.

The S&P BSE Consumer Durables index (down 1.9%), S&P BSE FMCG index (down 0.18%), the S&P BSE Healthcare index (down 0.9%), the S&P BSE IT index (down 0.64%), the S&P BSE Teck index (down 1.16%), outperformed the Sensex.

The market breadth indicating the overall health of the market was quite weak with more than three losers for every gainer on BSE. On BSE, 1,976 shares declined and 616 shares gained. A total of 122 shares were unchanged.

Bank stocks declined ahead of the Reserve Bank of India (RBI) Third Quarter Review of Monetary Policy for 2013-14 tomorrow, 28 January 2014.

Among private bank stocks, ICICI Bank (down 4.53%), AXIS Bank (down 3.89%), HDFC Bank (down 3.6%) and Kotak Mahindra Bank (down 3.82%), declined.

Among PSU bank stocks, State Bank of India (down 1.69%), Union Bank of India (down 4.7%), Bank of India (down 7.55%), Bank of Baroda (down 5.41%), Punjab National Bank (down 5.84%) and Canara Bank (down 5.81%) declined.

Steel major Tata Steel slumped 5.96% to Rs 354, with the stock extending intraday decline in late trade. The stock hit a high of Rs 370 and low of Rs 352.20.

Shares of FMCG major Hindustan Unilever (HUL) rose after the company announced its Q3 results. The stock rose 2.46% to Rs 579.80. HUL said its profit after tax before exceptional items, PAT (bei), rose 9% to Rs 955 crore in Q3 December 2013 over Q3 December 2012. Total income from operations (net) rose 8.54% to Rs 7223.35 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 27 January 2014.

During the quarter, the domestic consumer business grew ahead of market, at 10%, with 4% underlying volume growth, HUL said in a statement. The operating context during the quarter remained challenging with market growth under pressure, firm input costs given the rupee depreciation, an uncertain media environment and the high competitive intensity. HUL said that the cost inflation was managed through a combination of judicious pricing action, unwinding of promotions and substantial cost savings. Investment behind brands was sustained at competitive levels; overall A&P was up by Rs 107 crore (+40 bps) in the quarter, HUL said.

Commenting on the Q3 results, Harish Manwani, Chairman, HUL, said: "Our growth has been competitive and profitable and the results are a reflection of how we dynamically managed the business despite the headwinds in the environment. Looking forward, we are conscious of the uncertain macro context but remain positive on the mid to long term opportunities in our sector. We are determined to stay the course on our strategy and will continue to invest in the business for the long term".

Reliance Industries (RIL) dropped 2.48% at Rs 845.50. The stock was volatile. The scrip hit high of Rs 860.55 and low of Rs 840.10.

Telecom stocks declined. Bharti Airtel (down 1.99%), Tata Teleservices (Maharashtra) (down 2.98%) and Reliance Communications (down 5.07%) declined.

Idea Cellular declined 4.72%. Idea Cellular's consolidated net profit jumped 104.63% to Rs 467.73 crore on 18.54% rise in total income to Rs 6613.06 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours.

Telecommunication companies buying airwaves in an Indian auction next month will pay 5% of their revenue as an annual fee, a ministerial panel decided on Monday, 27 January 2014, a move that means lower payments for bigger carriers Bharti Airtel and the Indian unit of Vodafone. The move scraps the 3-8 percent fee range the country currently levies in an effort to coax previously reluctant operators into taking part in India's third attempt at auctioning two frequency bands for billions of dollars. The government may lose some revenue it collects as annual fees due to the new rate, Telecommunications Minister Kapil Sibal said after the meeting of the ministerial group, but expects it to help companies buy more spectrum in the auction starting 3 February 2014. "A successful auction means greater investment in the sector," he said, explaining the rationale for the new rate. The total spectrum fee for carriers' existing spectrum and new spectrum from the February auction will be calculated based on a weighted average of the old and new fee, Sibal said.

Sibal said companies like Reliance Industries, which bought 4G spectrum in a 2010 auction, will continue to pay 1 percent of their revenue as annual fee for that spectrum.

Capital goods stocks edged lower. ABB (down 2.26%), Bharat Heavy Electricals (Bhel) (down 1.79%), BEML (down 5.87%), Bharat Electronics (down 5.87%), Crompton Greaves (down 6.35%), L&T (down 2.56%), Siemens (down 7.23%) declined.

Auto stocks dropped ahead of the Reserve Bank of India (RBI) Third Quarter Review of Monetary Policy for 2013-14 tomorrow, 28 January 2014. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.

Tata Motors slumped 5.65%. The company before market hours today, 27 January 2014, announced the demise of its Managing Director, Karl Slym. "Tata Motors deeply regrets to announce the untimely and tragic demise of its Managing Director, Karl Slym, in Bangkok on Sunday, 26 January 2014. Karl Slym was in Bangkok to attend a meeting of the Board of Directors of Tata Motors Thailand. Karl Slym joined Tata Motors in October 2012, and was providing leadership to the company through a challenging market environment. The company shares in the grief of Karl Slym's wife and family at their irreparable loss," Tata Motors said in a statement.

Maruti Suzuki India shed 4.02% ahead of its Q3 results tomorrow, 28 January 2014.

M&M (down 2.03%) and Ashok Leyland (down 3.23%) dropped.

Shares of two wheeler companies also declined. Hero MotoCorp (down 0.43%), Bajaj Auto (down 1.09%) and TVS Motor Company (down 0.74%) declined.

Mining and metal stocks dropped on concerns about slower Chinese growth. Factory output may shrink this month, a preliminary survey from HSBC Holdings Plc and Markit Economics indicated last week, as the People's Bank of China injected more funds into the financial system to ease a cash shortage. China is the world's largest consumer of copper and aluminum. Hindustan Copper (down 4.11%), Hindalco Industries (down 2.5%), Hindustan Zinc (down 2.44%), Steel Authority of India (down 2.6%), NMDC (down 2.23%), JSW Steel (down 5.54%), Bhushan Steel (down 0.52%) and National Aluminum Company (down 2.76%), declined.

Sesa Sterlite lost 3.77% ahead of its Q3 results tomorrow, 28 January 2014.

Jindal Steel & Power dropped 3.15% ahead of its Q3 results tomorrow, 28 January 2014.

Shares of jewellery retailers declined after Finance Minister P. Chidambaram said that the restrictions on gold imports will remain intact at least until the end of this financial year to keep a lid on the country's current-account deficit. Gitanjali Gems (down 4.35%), Tribhovandas Bhimji Zaveri (TBZ) (down 1.89%), Titan Company, (down 1.28%), PC Jeweller (down 4.44%), Rajesh Exports (down 2.81%), Shree Ganesh Jewellery House (down 5.6 4%) edged lower.

The government raised the import duty on gold to 10% in 2013 from 2% in 2012 to rein in its ballooning current-account deficit. Gold supplies have also dried up because the central bank has mandated that importers prove that they will keep aside 20% of any imported gold for re-export as jewelry. Gold is the country's second-biggest imported commodity after crude oil. "We can revisit the curbs on gold by the end of the year. But let me hasten to add, this will happen only when we get a firm grip on the current-account deficit," Mr. Chidambaram told reporters today, 27 January 2014.

Last week, Congress party chief Sonia Gandhi asked the Ministry of Commerce to consider easing tough restrictions on gold imports, which have triggered a surge in gold prices and smuggling in India. The finance ministry makes all final decisions on taxation issues but takes advice about such issues from the commerce ministry. India's gem and jewelry industry has been lobbying for removing the import barriers as the cost of gold has risen, pushing up costs for making jewelry. Mr. Chidambaram said gold smuggling is estimated at 1-3 tons a month due to the import curbs, but added that the curbs are needed to keep control over the trade deficit.

Shree Cement fell 1.11% after net profit fell 46.89% to Rs 115.49 crore on 7.22% decline in total income to Rs 1328.03 crore in Q2 December 2013 over Q2 December 2012. The result was announced during trading hours today, 27 January 2014.

Realty stocks dropped ahead of the Reserve Bank of India (RBI) Third Quarter Review of Monetary Policy for 2013-14 tomorrow, 28 January 2014. Purchases of both residential and commercial property are largely driven by finance.

DLF (down 8.34%), HDIL (down 12.9%), Unitech (down 8.21%), D B Realty (down 4.81%), and Sobha Developers (down 0.85%) declined.

Fiem Industries rose 3.17% to Rs 367.40 after hitting record high of Rs 372.60 in intraday trade. The company said it has signed an MoU with two Japanese companies for a joint venture proposal in India for manufacturing of key sets, door mirrors and outside handles. The announcement was made after market hours on Friday, 24 January 2014.

Fiem Industries said that the company has signed a memorandum of understanding (MoU) with two Japanese companies namely, Honda Lock Mfg. Co., Japan and Toyota Tsusho Corporation, Japan for a joint venture (JV) proposal in India for manufacturing of key sets, door mirrors and outside handles. The Japanese companies are group companies of Japanese conglomerates Honda and Toyota, respectively.

Fiem Industries said that the Management considers it a major breakthrough in diversification of the product line as well as enhancing the presence of the company in four-wheel segment and being a new product line for the company, will add new dimensions to the growth of the company. The key sets will be for four-wheel as well as for two-wheel vehicles also, the company said.

Sabero Organics Gujarat rose 2.44%. Coromandel International declined 7.36%. Sabero Organics Gujarat said that the board of directors of the company and Coromandel International have approved the merger of the company with Coromandel International. The announcement was made after market hours on Friday, 24 January 2014.

Sabero Organics Gujarat (SOGL) said that the board of directors of Coromandel International (Coromandel) and SOGL, a subsidiary of Coromandel, at their respective meetings held on Friday, 24 January 2014, have approved merger of SOGL with Coromandel through a scheme of amalgamation, subject to approval of the stock exchanges, shareholders, creditors, concerned High Courts/Tribunal, and other regulators as applicable. As per the scheme, the public shareholders of SOGL will be issued shares in Coromandel in the ratio of five equity shares of Re 1 each of Coromandel for every eight equity shares of Rs 10 each of SOGL. The shares held by Coromandel and its wholly owned subsidiary Parry Chemicals (PCL) in SOGL shall get extinguished. In terms of the scheme, amalgamation of SOGL with Coromandel will be followed by the dissolution of SOGL.

Coromandel, along with PCL, holds 74.9% equity stake in SOGL.

Meanwhile, SOGL during trading hours today, 27 January 2014, said that the appointed date for the scheme of amalgamation is 1 April 2014.

In the foreign exchange market, the rupee edged lower against the dollar in choppy trade as equities fell sharply. A broad fall in other regional currencies also weighed on the domestic currency which extended Friday's steep slide. The partially convertible rupee was hovering at 63.10, compared with its close of 62.66/67 on Friday, 24 January 2014.

India's record high foreign exchange reserves and "strong" fundamentals should reduce concerns about the rupee currency, Economic Affairs Secretary Arvind Mayaram said on Monday, 27 January 2014. "Today, our current account deficit is going to be below $50 billion, foreign exchange reserves are (at an) all-time high, and we believe that we have very strong fundamentals in place," Mayaram told reporters in New Delhi. Mayaram added he did not believe the rupee would tumble and track steep falls in the Argentina peso. "There is no reason why we should believe that if Argentina is in trouble today, that the Indian rupee should follow," he said.

The Ministry of Consumer Affairs, Food & Public Distribution on Friday, 24 January 2014, said that as per data monitored by the Ministry of Consumer Affairs and Food, prices of rice, wheat and sugar during the week -- 16 January 2014 to 23 January 2014 -- remained steady in wholesale markets across the country. The Price Monitoring Cell of the Ministry monitors prices of twenty two essential commodities regularly at 55 wholesale centers. During the period, prices of rice remained steady at all wholesale centers and decreased at one center (Aizwal). Prices of wheat also were steady at all wholesale centers except one centre at Ludhiana. While sugar prices decreased at eight centers and remain steady at rest of the reporting centers, the Ministry of Consumer Affairs and Food said in a statement.

Prices of twenty two essential commodities are regularly monitored by Department of Consumer Affairs for taking suitable action to keep the prices under check. Price data is collected on daily basis from the State Civil Supplies Departments of the respective State Governments.

The Reserve Bank of India announces Third Quarter Review of Monetary Policy for 2013-14 at 11:00 IST tomorrow, 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.

European stocks edged lower on Monday, 27 January 2014, after a rout in emerging-market currencies spurred concern the global economic recovery is faltering. Key benchmark indices in UK, France and Germany were off 0.26% to 1.38%.

German business confidence rose to the highest level in more than two years and beat economists' forecasts in a signal that the expansion in Europe's largest economy may be accelerating. The Ifo institute's business climate index, based on a survey of 7,000 executives, climbed to 110.6 in January from 109.5 in December.

Asian stocks slumped on Monday, 27 January 2014, as concern that the global economic recovery is faltering spurred investors to sell riskier assets. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea were off 1.03% to 2.58%.

Emerging-market stocks fell amid concern that slower Chinese growth and reduced Federal Reserve stimulus will spark more capital outflows. In recent years, emerging markets have been supported by the Fed's policy of easy money, but any cut could pull more money out of these risky markets and hurt growth.

Japan reported a record annual trade deficit for last year as energy shipments and weakness in the yen pumped up the nation's import bill. The shortfall was 11.5 trillion yen ($113 billion), almost double the previous year's 6.9 trillion yen, a finance ministry report showed in Tokyo today, 27 January 2014. Imports rose 25% in December from a year earlier and exports gained 15%, leaving a monthly deficit of 1.3 trillion yen.

South Korea has accepted the North Korea's offer to renew reunions of families separated by the Korean War, a move that may signal thawing tensions between the two nations.

Trading in US index futures indicated that the Dow could gain 5 points at the opening bell today, 27 January 2014. US stocks tumbled on Friday, 24 January 2014, as investors fled equities and emerging-markets currencies on concerns about a contagion effect from China's manufacturing slowdown. The CBOE Volatility Index, known as the Vix, surged 32%, its steepest rise since the April 15 Boston Marathon bombings.

A two-day monetary policy meeting of the Federal Open Market Committee (FOMC) begins tomorrow, 28 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.

Global stocks tumbled the most since June on Friday, 24 January 2014, as a sell-off in emerging-market currencies prompted investors to seek havens in Treasuries, gold and the yen.

Courtesy: The Business Standard