Winning Strokes

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Trading for the week started on a subdued note as key indices logged modest losses as sentiment was marred by loan fraud cases in the PSU banks. The barometer index, the S&P BSE Sensex, lost 236.10 points or 0.69% to settle at 33,774.66. The Nifty 50 index lost 73.90 points or 0.71% to settle at 10,378.40. The last week's detection of a massive fraud at a Mumbai branch of the state-run Punjab National Bank (PNB) continued to weigh on sentiment. The latest reports suggesting a loan fraud case in PSU banks by now defunct Rotomac Pens also marred sentiment.

The recent rebound in global crude oil prices also raised concerns of its adverse impact on fiscal deficit as India imports most of its oil requirements. The Sensex settled below the psychological 34,000 mark after drifting below that level in early trade. The market dropped for the second day in a row.

A bout of volatility was seen in early trade as the key benchmark indices opened higher but quickly erased gains to sink in the negative zone. Stocks extended slide and hit fresh intraday low in morning trade. Key benchmark indices hovered in negative zone in mid-morning trade. Selling aggravated and indices nosedived to hit fresh day's low in afternoon trade. Domestic stocks continued to languish and hover near intraday low in mid-afternoon trade. Key indices cut losses in late trade.

The Sensex lost 236.10 points or 0.69% to settle at 33,774.66. The index slumped 456.39 points or 1.34% at the day's low of 33,554.37. The index rose 112.20 points or 0.33% at the day's high of 34,122.96.

The Nifty 50 index dropped 73.90 points or 0.71% to settle at 10,378.40. The index dropped 149.55 points or 1.43% at the day's low of 10,302.75. The index gained 37.05 points or 0.35% at the day's high of 10,489.35.

The S&P BSE Mid-Cap index declined 1.05%. The S&P BSE Small-Cap index fell 0.99%. Both these indices underperformed the Sensex.

Among the sectoral indices on BSE, the S&P BSE Healthcare index (down 1.1%), the BSE Auto index (down 1.11%), the BSE Capital Goods index (down 1.56%), the BSE Metal index (down 1.6%), the BSE Oil & Gas index (down 1.01%) and the BSE Realty index (down 1.12%) underperformed the Sensex. The BSE IT index (down 0.52%), the BSE Telecom index (down 0.53%) and the BSE Bankex index (down 0.57%) outperformed the Sensex.

The broad market depicted weakness. There were almost three losers against every gainer on BSE. 2,017 shares fell and 734 shares rose. A total of 162 shares were unchanged.

The total turnover on BSE amounted to Rs 4070.05 crore, lower than the turnover of Rs 4116.26 crore registered during the previous trading session.

Capital goods stocks edged lower. BEML was down 2.47%, ABB India 1.92%, Bharat Electronics 1.29%, Bharat Heavy Electricals (Bhel) 1.06%, and Siemens fell 2.31%. Punj Lloyd was up 0.49% and Thermax rose 1.82%.

PSU bank stocks continued to bleed following detections of frauds in some psu banks. State Bank of India was down 1.51%, Dena Bank 4.43%, Canara Bank 1.3%, and United Bank of India fell 2.36%.

Bank of Baroda slumped 5.48%, Allahabad Bank 6.3%, Bank of India 4.07% and Union Bank of India slumped 7.19%. The Central Bureau of Investigation (CBI) reportedly today, 19 February 2018, grilled Vikram Kothari, owner of the now defunct Rotomac Pens in Rs 800 crore loan fraud case. The Bank of Baroda had approached the CBI with a complaint against Kothari. Kothari had reportedly borrowed Rs 800 crore from various public sector banks including Allahabad Bank, Bank of India and Union Bank of India.

Punjab National Bank (PNB) lost 7.36%, extending recent steep losses triggered by the bank detecting a $1771.69 million fraud at a single branch in Mumbai. PNB made the announcement before trading hours on 14 February 2018.

PNB announced before trading hours on 14 February 2018, that it detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance. Based on these transactions, other banks appear to have advanced money to these customers abroad. In the bank these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions. The quantum of such transactions is $1771.69 million (approximately). The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land. The bank said it is committed to clean and transparent banking.

PNB clarified after market hours on 15 February 2018, that on 16 January 2018, the partnership firm of Nirav Modi group approached PNB branch at Brady House, Mumbai and presented a set of import documents with a request to allow buyers' credit for making payment to the overseas suppliers. Since there was no sanctioned limit in the name of the above firms, the branch officials requested the firms to furnish at least 100% cash margin for issuing Letter of Undertaking (LOU) for raising buyer's credit. On denial, the firms contested that they have been availing such transactions since past several years.

Metal and mining stocks declined. JSW Steel lost 2.97%, Steel Authority of India (Sail) 1.3%, Hindustan Copper 2.16%, National Aluminium Company 2.36%, Hindustan Zinc 0.22%. Jindal Steel & Power 0.64%, and NMDC 1.83%. Hindalco Industries 0.32% and Vedanta rose 0.33%.

Vakrangee was locked in 5% lower circuit at Rs 233.20 on profit booking after a recent rally. Shares of Vakrangee surged 27.57% in five trading sessions to settle at Rs 245.45 on Friday, 16 February 2018, from its close of Rs 192.40 on 8 February 2018.

Meanwhile, the Sensex has declined 522.81 points or 1.52% in two sessions to its ruling index, from a close of 34,297.47 on 15 February 2018.

Overseas, European shares were trading lower. Asian shares rose as sentiment improved gradually from a recent shakeout that stemmed from fears of creeping inflation and higher borrowing costs. Markets in China, Hong Kong and Taiwan remain closed for the holiday. US markets are closed today, 19 February 2018 in observance of Presidents Day.

Japanese exports rose for a 14th straight month in January 2018, helped by continued demand from Asia for equipment to make semiconductors, data from Japan's finance ministry showed today, 19 February 2018. Exports grew 12.2% in January from a year earlier, following a 9.3% year-on-year gain in the previous month.

In US, the Dow industrials and S&P 500 logged their sixth straight advance on Friday, 16 February 2018 but the Nasdaq lagged its peers, as political drama sparked turbulent trade late in the session. Special Counsel Robert Mueller announced the indictments of 13 Russian nationals and three Russian entities, accusing them of interfering in the 2016 US presidential election. The indictment said the defendants were supporting Donald Trump's campaign and disparaging Hillary Clinton.

#Today, two buy calls were initiated for the Premium Members during the dying hours of the market: 

(i) Buy NIFTY FUTURE around 10330-10335, SL: 10275 (CASH/SPOT), T: 10404-10425....

(ii) Buy the shares of Jai Corp Ltd at around Rs.165, SL: Rs.161 for a very short term target of Rs.172, .

Join Premium Information Service or trade through my associated brokerage house BMA Wealth Creators Ltd, with a minimum portfolio size of Rs.2 lakhs to be a part me and stay ahead of others. I am giving special discounts to the small investors (Portfolio Size: below Re.1 lakh), till 28 February, '18. Hence, you are requested to avail of the same, till the offer lasts. 

#The shares of TV Vision Ltd (Rs.17.10) is probably near its bottom and hence a bounce is expected from the oversold levels. If we look at the December, '17 quarter results of the company we would find that its total revenue had moved up to Rs.27.81 crore as against Rs.26.04 crores in the September, '17 quarter. Also, the PBDT  of company for Q3FY18 is Rs.2.02 crore as against Rs.16 lakhs in the September, '17 quarter. It is due to Depreciation and Tax component that the company came out with loss in the December, '17 quarter.

The year 2018 is expected to be action packed since it will be a big year before the general elections in 2019. The company is likely to hike the ad rates going forward. Also, similar to the telecommunications sector, television broadcasting organisations, including direct-to-home (DTH), cable services and headend in the sky (HITS) require huge investments in setting up technology and distribution networks and, as such, are ‘asset-rich’ organisations.

Indian Budget, '18-19, was a big thumbs up for Digital India and digitisation. With a view to promote digitization, the government of India is set to make the necessary investments in robotics, IoT, AI, digital manufacturing and big data analysis with the NITI Aayog to establish a national programme to direct efforts in the artificial intelligence. The governmemt has committed itself to the development of technology along with concentrating on AI and its application, a revolutionary move for the digital industry. The ministry has decided to double its Digital India budget to around Rs.3000 crore. 

The ministry has also proposed to set up 5 lakh Wi-Fi hotspots to give access to 5 crore rural citizens, which means digital and internet penetration into smaller pockets of the country will result in increased data consumption across India. The move will help brands, agencies and OTT players to create target content for such markets. 

Moreover, the government's thrust to rural infrastructure and agriculture in the budget could lead to additional broadcast revenues and may increase the number of TV households in India. As the standard of living increases, electrification expands and affordability goes up, the rural India will buy more television sets and the penetration will increase. A lot of the freedish homes might also get converted to pay TV homes, adding up to the subscription revenues of the broadcasters. 

“Our baseline study indicated that economic prosperity and higher living standards goes hand in hand with TV penetration and higher TV consumption. With only two-thirds of Indian homes having access to TV, there is huge headroom for growth here, and this year’s budget should help drive up TV ownership and consumption in rural India," Dasgupta said.

Besides, advertising expenditure in India is expected to grow at 13% to touch Rs.69,346 crore in 2018 over 2017, according to a forecast by WPP-owned media agency GroupM in its report This Year Next Year (TYNY). This is higher than 10% that GroupM put out for 2017.

Therefore at the CMP of Rs.17.10, the share of the company having 5-established TV channels and having great plans ahead is available at the price of dirt. The scrip of TV Vision Ltd, should get ultimate support in the range of Rs.15.3-Rs.17.

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

WINNING STROKES: THINK DIFFERENT

Unitech Ltd as expected bounced today from Rs.6.93 to close at Rs.7.24 in the BSE. The scrip made an intra-day high of Rs.7.35, but could not sustain that levels. The stock should make new 52-week highs in the coming days. This optimism stems from the fact that there were recent media reports which said: Residential real estate sales rose 8% in the April-June quarter, compared to a 3% decline in January-March, suggesting that the market which has seen sluggish growth over the last 2-3 years, is finally seeing some revival signs. Sales across nine key Indian cities - Mumbai, Pune, Noida, Gurgaon, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad – rose to 55,550 units in first quarter of this fiscal from 51,500 units in fourth quarter of 2015-16, according to a report by real estate portal PropTiger. The revival in sales was primarily driven by an uptick in demand in Bengaluru, Pune and Mumbai, which together accounted for 61% of total sales across the 9 cities in the first quarter of fiscal 2017, the report added  The investors should add the scrip on all declines and wait for it to close above Rs.7.30, with good volumes. 

The Share of Reliance Communications Ltd today rose to Rs.52.30 in the BSE before closing at Rs.51.55. Yesterday, the stock was reiterated a buy, with short term targets of Rs.60-61. As mentioned a number of times earlier, the launch of Reliance Jio is positive for the shareholders of Reliance Communications Ltd. Meanwhile the ET, reported on 8 July, 2016 that the  US private equity firm Brookfield Asset Management has emerged, a serious bidder to buy Reliance Communications' stake in its tower unit. RCom and Aircel have been in exclusive talks since December on a much-anticipated amalgamation in what would be the first in-market telecom merger of national scale in the country. 

As per terms of the pact, RCom will hive off its wireless business into a separate arm, which will be combined with Maxis-owned Aircel, with both companies having equal ownership. The new $6 billion entity proposed will remain unlisted in the initial years and operate under a new brand name. 

RCom is now unofficially the 3rd largest Telecom player in India, and we would soon see its reflection in the share price. Therefore, add the scrip on all declines.

The stock of JSW Energy Ltd as expected corrected to Rs.77.50 intra-day before closing at Rs.78.55. Yesterday, it was suggested to exit the counter, either with minimum profits or with no profit no gains. You should leave this stock for the time being, unless it finds its levels. 

The stock of Syncom Formulations Ltd today rose to Rs.3.49 in the BSE before cooling down to Rs.2.86, intra-day and then closing at Rs.3.20. The scrip should be slowly moving towards my next target of Rs.4.20, provided it closes above the strong resistance zone of Rs.3.40-3.50. 

The stock of Karuturi Global Ltd, whose fundamentals are looking great even after their misadventure in Africa, could give multi-bagger returns going forward. The stock made an intra-day high of Rs.1.67, before closing flat at Rs.1.60 in the BSE. The company is fighting a tough battle in the African continent and the recent visit by Narendra Modi, could end their owes. However, this stock is only for risk taking trader - others should stay away from this counter. This is infact high-risk-high-gain counter. Meanwhile, the Karuturi Flower Farm owner reportedly said last month that he will clear his debts and reopen the farm, which has 2,600 workers.

Businessman Ram Karuturi said the farm will be up and running in a couple of months, once court cases are closed. It was put under receivership last year.

It is to be noted that in early 2014, CFC Stanbic Bank had placed Karuturi Global Ltd under receivership after it failed to service a Sh340 million (Sh34 Cr) loan. However, the flower firm’s management protested vehemently against the move, saying the land, valued at Sh8.2 billion, is worth much more than the loan amount. Now let us do some simple calculations:
Sh8.2 billion = Sh820 crores.

Therefore, the price of the farm's land is ~24.11 times the value of the loans, taken by Kenya’s biggest flower firm, Karuturi Global Ltd. Can you imagine? In September 2014, one of its parent flower trading subsidiary in the Netherlands was declared bankrupt. 

Nazret.com writes: 

“Touch me, then you will see the power of India”, declared.....Sai Ramakrishna Karuturi in a recent interview in direct challenge to the Thugtatorship of the Tigrean People’s Liberation Front (T-TPLF).

However, an interesting part of this episode is that the said farm land is registered under the ownership of Rhea Holdings Ltd/ Surya Holdings Ltd/ Yeshoda Investments Ltd used for flower farming in Naivasha, Kenya. “I am hoping they [liquidators] can find someone to buy air,” Mr Karuturi told The Standard, adding, “there is nothing in there to be sold.” Or in other words, Karuturi and T-TPLF have weaved a convoluted and tangled legal web for themselves in their Gambella Gambit. Did you get me?

Karuturi Global Ltd once boasted of 126 hectares of flowers under greenhouses and a further eight hectares of open air rose cultivation comprising more than 20 popular rose varieties. The firm also prided itself in having significant recognition in key European export markets and comprehensive contracts of sale in 2015 with customers in the main market segments. Karuturi produced 580 million roses per year from its operations in Kenya, Ethiopia and India with estimates showing that one out of nine roses bought in Europe came from the Karuturi farm. The company, few years back acquired more than 300,000 hectares in Ethiopia to produce food for foreign markets. Last year on on August 17, 2015, ICICI Bank acquired 8.89% shares of Karuturi Global Ltd, at a deal is valued at over Rs.24.69 crore.

Jindal Steel and Power Ltd which was recommended around Rs.58-60, today touched my final target of Rs.90 (intra-day- Rs.90.35). The investors should keep holding the scrip till Rs.67, is broken on the downside.

Those who are holding the shares of Lanco Infratech Ltd (Rs.5.05) should exit the scrip on intra-day highs, as it is not performing as per expectations. They could enter Reliance Communications Ltd, after exiting from this scrip.

Those who are holding the shares of BHEL(Rs.148.50), can look for further appreciations of their holdings, as the stock is likely to kiss Rs.163, once Rs.152 is taken on the upside.

Those who are still holding my old recommendation Vedanta Ltd (Rs.168.45) from around Rs.60, should look for targets of around Rs.186-187, once Rs.172-173 is crossed with good volumes.

Those who have a portfolio size of around Rs.4-5 lakhs-plus and is looking for good appreciation over their investments can contact my firm. This is the time to make good money from the share market, when the trends can be identified and exploited. Though 30% appreciation on the capital invested is considered as very good return from any share market, you will get more than that, sitting in the comforts of your home. This market is for the experts and not for amateurs. Also, those who will trade through my associated brokerage house, with a minimum portfolio size of Rs. 1.5 lakhs will get my Premium Service worth Rs.15, 000 per year, FREE OF CHARGE. Therefore, without delay, mail me at: suman2005s@rediffmail.com or sumanm2007s@gmail.com, if you are really interested in making some quick bucks from the Indian Stock Markets, which are in a roll right now. 

WINNING STROKES: THINK DIFFERENT

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Yesterdays' recommendation, HCC Ltd today shot up to the Rs.29.20, intra-day before closing at Rs.27.70. The scrip reached both the targets today. Join the Premium Group and make most from the stock market.............moreover, if you are having around Rs.50 lakhs to Rs.1 Crore, for investing in the equity market, do let me know....we can strike a deal with 50:50 profit sharing ratio. The markets are on a run and this is the time to make money.....you have the money, I have the expertise---I believe both can gel and give good returns (over a period). 
Today, a buy call was initiated in Vedanta Ltd, for the Mobile Group at Rs.103 and for the Web Group at Rs.104. The scrip today made an intra-day high of Rs.105.95 before closing at Rs.105.05. What is the target of the scrip? Anyway, recently, there were some media reports that Vedanta Ltd is expecting its iron ore exports from the state of Goa to be much higher than its permitted mining capacity of 5.5 million tonnes in the fiscal year to March, as it bids for ore in government-run auctions. The natural resources conglomerate said in a statement yesterday, that its iron ore division shipped its first cargo of iron ore, after resuming mining operations in August in Goa. Iron ore mining was banned in the state of Goa since late 2012 amid allegations of rampant illegal mining and environment damage. The ban was eventually lifted but with an upper limit of 20 million tonnes late last year with an aim to preserve the resource for future generations. It is pertinent to mention here that, the brokerage house Emkay Global Financial Services,  in its research report dated June 15, 2015 gave a buy rating on the scrip, with a target price of Rs 235.

Meanwhile, the company has declared, 30/10/2015 as the cut-off date for the Interim Dividend. The 52 Week High (adjusted) and Low (adjusted) for the share are Rs.263.55 and Rs.76.70, respectively. 

Proteins Ltd, today closed at the upper circuits at Re.0.26. The scrip is going to give good returns to the investors over a period. 

~:WINNING STROKES: THINK DIFFERENT:~

Allied Digital Services Ltd  hits the buyer freeze in the opening trade, the scrip closed at Rs.30.70. The stock was repeatedly asked to be accumulated on all declines. The 52-week high for the scrip is Rs.231.90.

DCB Ltd today touched Rs.45.90 before cooling down a bit. The stock was recommended around Rs.41.70-43 and was repeatedly asked to be accumulated on all declines. These stocks will work miracle once the "November effect" kicks in.....
The following Nifty call was given during the market hours first to the Paid Service members and then in Facebook. Buy Nifty 5400 call with a SL of 5250- 5240 (I had earlier sent this call through Yahoo Messenger to the Paid Members), which is likely to act as a strong support for the market.A weekly close above 5200 after a consolidation phase around 5000- 5150 gives the index a strong chance to trade on the north side in the short term. Thus longs can be carried with a stop of 5000 for a probable target of 5400-5450 on the upside. 

Rolta India Ltd moved to Rs.84 before cooling down a bit due to overall market conditions.The stock was recommended after a break-out was seen in the counter at Rs.75.5.The total sales of the company for Q2FY12 came out to be Rs.485.85 Cr while the Net Profit came out to be Rs.62.16 Cr. This gave an EPS of Rs.3.9 for the Q2FY12.
Country Club India Ltd recommended around Rs.8.5--8.70, moved to Rs.9.69 before cooling down a bit. This stock will give multi-bagger returns going forward. The season of the company has already started.
My strongly recommended Shree Asthavinayak Cine Vision Ltd  hits the buyer freeze. The stock was recommended on 4th August, 2011 at Rs.4.12. This scrip nearly doubled in less than 3 months time frame. You can refer my Research Report and blog post at: www.sumanspeaks.blogspot.com.
All those investors who will dance to the media news of Greece, Europe, UK, etc. will be left behind in the race for making money. Those who failed to buy SAIL at Rs.5 or Alphageo at Rs.6 or Lupin Ltd at Rs.9 in 2000--2001 or may be Flat Products (now CMI FPE LTD) at Rs.65--75 or Chandra Prabhu International Ltd (I faced lot of criticism after recommending the counter) at Rs.4-5, in 2004-05 might still be banging their head against the ground. The stock market is only for the patient investors, it is not for those who thinks it is a casino or an online lottery. All these brokerage houses will repeatedly puzzle you, so that you buy and sell, a number of times inflating their stomach. So, use a little of your grey cells in your brain and make money. Have a long term view and have some common-sense--the world is not coming to an end. There are world-wide efforts to make this world more comfortable, so think positive. Participate in the whirl wind small and mid cap rally which is expected to start from the next week.
Key benchmark indices dropped for the second consecutive session as softer-than-expected Chinese manufacturing data and fresh worries about the euro-zone debt crisis caused global risk aversion. The BSE Sensex fell 224.18 points or 1.27%, off 181 points from the day's high and up 58 points from the day's low. All the 13 sectoral indices on BSE were in the red. The market breadth was negative.

The Sensex has lost 323.97 points or 1.82% in the past two trading sessions from 17,804.80 on 28 October 2011. The Sensex jumped 1,251.25 points or 7.6% in October 2011 on a European Union plan to tackle the 2-year old euro-zone debt crisis and on Reserve Bank of Indias indication of a pause in interest rate hikes. The Sensex has slumped 3,028.26 points or 14.76% in calendar 2011. From a 52-week high of 21,108.64 on 5 November 2010, the Sensex has lost 3,627.81 points or 17.18%. From a 52-week low of 15,745.43 on 4 October 2011, the Sensex has risen 1,735.40 points or 11.02%.

Coming back to today's trade, index heavyweight Reliance Industries fell after the company refuted speculation that it is considering acquiring Valero Energy, Inc. Two other index heavyweights ICICI Bank and L&T fell. Car maker Maruti Suzuki reversed intraday losses on bargain hunting. FMCG giant Hindustan Unilever hit a fresh record high, with the stock extending Monday's 7.38% rally triggered by strong Q2 results. Shares of steel makers were hit after credit-rating firm Standard & Poor's downgraded Korean steel giant Posco to A- from A with a negative outlook.

The market recovered soon after a weak start triggered by mostly lower Asian shares. The market weakened again in morning trade. Weakness continued in mid-morning trade. The market extended intraday losses in early afternoon trade. A bout of volatility was witnessed in afternoon trade as key benchmark indices extended losses in afternoon trade. The market extended losses in mid-afternoon trade. The market came off lows in late trade.

The BSE Sensex fell 224.18 points or 1.27% to settle at 17,480.83, its lowest closing level since 26 October 2011. The index fell 282.54 points at the day's low of 17,422.47 in late trade. The index fell 43.23 points at the day's high of 17,661.78 in morning trade.

The S&P CNX Nifty shed 68.65 points or 1.29% to 5,257.95, its lowest closing level since 26 October 2011. The Nifty hit a low of 5,238.30 in intraday trade. The Nifty high of 5,310.85 in intraday trade.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,609 shares fell and 1,177 rose. A total of 129 shares were unchanged.

BSE clocked a turnover of Rs 2231 crore, higher than Rs 2190.68 crore on Monday, 31 October 2011.

From the 30 share Sensex pack, 23 fell and the remaining shares rose.

India's largest private sector bank by net profit ICICI Bank fell 3.8% to Rs 895.15. ICICI Bank's consolidated net profit rose 43% to Rs 1992 crore in Q2 September 2011 over Q2 September 2010. Standalone profit after tax increased 22% to Rs 1503 crore in Q2 September 2011 over Q2 September 2010. Net interest income increased 14% to Rs 2506 crore in Q2 September 2011 over Q2 September 2010. Fee income increased 7% to Rs 1700 crore in Q2 September 2011 over Q2 September 2010. Provisions decreased 50% to Rs 319 crore in Q2 September 2011 over Q2 September 2010. The result was announced during trading hours on Monday, 31 October 2011.

ICICI Bank's current and savings account (CASA) ratio stood at 42.1% as on 30 September 2011. Net non-performing asset ratio decreased to 0.8% as at 30 September 2011 from 1.37% as at 30 September 2010 and 0.91% as at 30 June 2011.

Among other banking shares, IndusInd Bank, IDBI Bank, Yes Bank, Axis Bank, Union Bank of India, HDFC Bank, Kotak Mahindra Bank and State Bank of India fell by 0.24% to 3.24%.

Bank of Baroda jumped 3.52%, extending Monday's 4.41% rally triggered by strong Q2 results. Net profit rose 14.40% to Rs 1166.08 crore on 36.74% increase in total income to Rs 7985.78 crore in Q2 September 2011 over Q2 September 2010. The result was announced during trading hours on Monday, 31 October 2011.

Punjab National Bank (PNB) rose 3.78% after net profit rose 12.14% to Rs 1205.03 crore on 37.18% increase in total income to Rs 9840.87 crore in Q2 September 2011 over Q2 September 2010. The result was announced today, 1 November 2011.

Punjab & Sind Bank rose 1.99% after net profit rose 35.47% to Rs 147.76 crore on 30.2% rise in operating income to Rs 1711.27 crore in Q2 September 2011 over Q2 September 2010. The result was announced on Monday, 31 October 2011.

Metal shares declined as LMEX, a gauge of six metals traded on the London Metal Exchange, fell 1.57% to $3,526.10 on Monday, 31 October 2011. Hindustan Zinc, Nalco and Hindalco Industries were down by 0.37% to 4.06%.

India's largest copper maker by sales Sterlite Industries (India) lost 3.22% to Rs 123.35. During market hours today, 1 November 2011, the company clarified on a media report regarding increase in its stake in associate company, Vedanta Aluminium (VAL) that the report contains several misleading statements. The company would like to clarify that it does not expect any change in its shareholding in VAL, which currently stands at 29.5%. As and when the capital structure of VAL is finalized, part of the loans/quasi-equity from Sterlite Industries would get converted to equity of VAL in order to achieve the target debt-equity ratio of VAL and maintain Sterlite's 29.5% shareholding in VAL. This situation remains unchanged, the company added.

Steel makers were hit after credit-rating firm Standard & Poor's downgraded Korean steel giant Posco to A- from A with a negative outlook. Posco's results in the third quarter of 2011 were below our expectations, and we forecast a further deterioration over the next 12 months, based on signs of slowing demand for steel and a rise in competitive pressures, S&P said. Bhushan Steel (down 2.66%), JSW Steel (down 2.49%), Tata Steel (down 2.34%), Sail (down 1.34%) and Jindal Steel & Power (down 1.10%), declined.

India's largest cigarette maker by sales ITC fell 2.35% on reports the finance ministry is exploring plans to raise excise duty on cigarettes and diesel cars to raise revenue. ITC's net profit rose 21.46% to Rs 1514.31 crore on 18.22% rise in total income to Rs 6266.02 crore in Q2 September 2011 over Q2 September 2010. The company announced the results on 24 October 2011.

Tractor and SUVs maker Mahindra & Mahindra fell 3.38% to Rs 834.05. The company's total sales rose 20.3% to 41,506 units in October 2011 over October 2010. Domestic sales rose 21.1% to 39,352 units while exports rose 7.5% to 2,154 units in October 2011 over October 2010.

India's largest car maker by sales Maruti Suzuki India rose 0.44% to Rs 1130.60, up from the day's low of Rs 1112.20. The company's total sales slumped 53.2% to 55,595 units in October 2011 over October 2010. Domestic sales fell 52.2% to 51,458 units while exports tumbled 63.6% to 4,137 units in October 2011 over October 2010. Labour unrest at Maruti's Manesar unit during October 2011 adversely impacted the company's sales. The firm lost production of 40,000 units during the month.

India's largest truck maker by sales Tata Motors fell 2.49%, reversing early gains. Commercial vehicles maker Ashok Leyland fell 3.49%. TVS Motor Company (down 4.07%), Bajaj Auto (down 1.05%) and Hero MotoCorp (down 1.13%), edged lower.

India's largest engineering & construction firm by order book, L&T fell 1.63% to Rs 1390.20. The company cut its order growth guidance for the current fiscal year to 5%, from 15% earlier at the time of announcing second quarter results on 21 October 2011. Order flow is being hampered by investment slowdown, project deferrals and higher competition, Chief Financial Officer R Shankar Raman said at the time of announcing the second quarter results.

India's second largest software services exporter Infosys fell 1.32%. The company's consolidated net profit as per International Financial Reporting Standards (IFRS) rose 10.68% to Rs 1906 crore on 8.2% growth in revenue to Rs 8099 crore in Q2 September 2011 over Q1 June 2011. The company announced the results on 12 October 2011.

Infosys has forecast 9.72% to 11.11% growth in non-annualized earnings per American Depositary Share at $0.79 to $0.80 in Q3 December 2011 over Q2 September 2011. It has forecast 3.2% to 5.3% growth in revenue at $1.802 to $1.84 billion in Q3 December 2011 over Q2 September 2011.

The company has for the second quarter in a row revised upwards its dollar earnings guidance for the year ending March 2012 (FY 2012). The company expects 15.3% to 16.8% growth in earnings per American Depositary Share at $3.02 to $3.06 in FY 2012 over the year ending March 2011 (FY 2011). However, the company has revised downwards dollar revenue growth guidance for FY 2012. The company expects 17.1% to 19.1% growth in revenue at $7.08 billion to $7.20 billion in FY 2012 over FY 2011.

India's third largest software services exporter Wipro rose 1.83%. The company announced before market hours on Monday, 31 October 2011 that non-GAAP adjusted net profit as per International Financial Reporting Standards (IFRS) rose 2% to Rs 1306 crore on 18% rise in total revenue to Rs 9094 crore in Q2 September 2011 over Q2 September 2010. The company expects 7.91% to 10.07% growth in revenue from IT services business at between $1.5 billion to $1.53 billion in Q3 December 2011 over Q2 September 2011.

Wipro said that in the current macro-economic environment, corporations across the globe are looking to maximize the potential of technology deployments and are increasingly relying on business models and technologies to variabilize their IT spends, enabling more differentiating investment for IT based innovation.

Wipro said it is seeing traction with clients on cloud and variabilized business model offerings. State Street Corporation, one of the world's leading providers of financial services to institutional investors, has entered into a multi-year agreement with Wipro to provide application maintenance and support services Wipro will deploy pioneering lean methodologies delivered through its award winning CIGMA platform for this IT transformation engagement.

India's largest FMCG firm by sales Hindustan Unilever (HUL) gained 3.52% to Rs 388.45 after striking a record high of Rs 393.20 in intraday trade today and was the top gainer from the Sensex pack. The stock extended Monday's 7.38% rally triggered by strong Q2 results. Net profit rose 21.69% to Rs 688.92 crore on 17.75% rise in total income to Rs 5610.48 crore in Q2 September 2011 over Q2 September 2010. The results was announced during trading hours on Monday.

Drug maker Sun Pharmaceutical Industries rose 0.15% to Rs 504.05. The company has received approval from the US health regulator to market generic Diltiazem HCl extended-release capsules used for treating hypertension and angina in the American market.

The company's subsidiary has been granted approval by the United States Food and Drug Administration (USFDA) for the abbreviated new drug application (ANDA) to market generic Diltiazem HCl extended-release capsules, Sun Pharma said in a statement after market hours on Monday, 31 October 2011. These Diltiazem HCl extended release capsules are generic equivalent to Valeant International's Cardizem CD capsules in the strengths of 20 milligram (mg), 180 mg, 240 mg, 300 mg and 360 mg, it added. The company said that annual sale in the US for these strengths is approximately $300 million.

Cement major ACC fell 0.95% after the company said that the supply of domestic coal has been grim, affecting cement as well as the power production. During market hours today, 1 November 2011, the company reported 84.57% rise in consolidated net profit to Rs 159.31 crore on 29.8% growth in sales turnover to Rs 2283.42 crore in Q3 September 2011 over Q3 September 2010. The overall outlook for coal in terms of both availability and pricing is not favorable, ACC said in a statement. Coal is a key raw material.

ACC said a pick-up in demand for cement is likely post monsoon. However, the company does not expect the demand pick-up to be very robust in view of concerns about a slowdown in economic growth. ACC expects long term positive outlook for cement demand.

EIH, owner of the Oberoi chain of hotels, rose 1.54%. The company after market hours on Monday, 31 October 2011 reported net profit of Rs 16.59 crore for the quarter ended September 2011 as against net loss of Rs 14.97 crore for the quarter ended September 2010. Net sales rose 8.79% to Rs 216.99 crore in the quarter ended September 2011 over the quarter ended September 2010.

EIH cut its debt, resulting in a lowering of the interest charges to Rs 11.88 crore in Q2 September 2010 from Rs 40.20 crore in Q2 September 2010. In March 2011, EIH had raised Rs 1178 crore through rights issue of shares, and used Rs 896 crore (upto 30 September 2011) to cut its debt.

Meanwhile, the company said it inducted Nita Ambani, Manoj Harjivandas Modi, Renu Sud Karmad and Robert Henry Burns as additional directors of the company. Nita Ambani is wife of Mukesh Ambani, whose Reliance Industries holds 14.8% in the company.

United Breweries fell 3.23% after net profit declined 10.91% to Rs 19.52 crore on 30.37% rise in net sales to Rs 733.19 crore in Q2 September 2011 over Q2 September 2010. The result was announced on Monday, 31 October 2011.

Havells India jumped 6.88% after net profit rose 19.9% to Rs 70.24 crore on 28.6% growth in net sales to Rs 850.39 crore in Q2 September 2011 over Q2 September 2010. The company announced the results after market hours on Monday, 31 October 2011.

Balaji Amines rose 5.25%. Net profit of Balaji Amines rose 6.41% to Rs 10.63 crore on 14.18% rise in net sales to Rs 104.17 crore in Q2 September 2011 over Q2 September 2010. The company announced the results after market hours on Monday, 31 October 2011.

Gulf Oil Corporation rose 3.23%. Net profit of Gulf Oil Corporation rose 5.76% to Rs 13.03 crore on 6.94% decline in net sales to Rs 228.03 crore in Q2 September 2011 over Q2 September 2010. The company announced the results after market hours on Monday, 31 October 2011.

Apar Industries tumbled 6.04%. Net profit of Apar Industries declined 85.72% to Rs 4.89 crore on 10.56% rise in net sales to Rs 737.64 crore in Q2 September 2011 over Q2 September 2010. The company announced the results after market hours on Monday, 31 October 2011.

Usha Martin tumbled 3.18% after the company reported net loss of Rs 71.80 crore in Q2 September 2011 as against net profit of Rs 32.50 crore in Q2 September 2010. Net sales rose 7.29% to Rs 686.31 crore in Q2 September 2011 over Q2 September 2010.

Shree Ashtavinayak Cine Vision clocked highest volume of 1.07 crore shares on BSE. Cals Refineries (62.93 lakh shares), Suryachakra Power Corporation (47.21 lakh shares), Unitech (46.63 lakh shares) and Tata Motors (40.57 lakh shares), were the other volume toppers in that order.

State Bank of India clocked highest turnover of Rs 88.70 crore on BSE. Tata Motors (Rs 80.03 crore), Hindustan Unilever (Rs 75 crore), ICICI Bank (Rs 72.18 crore) and Indiabulls Financial Services (Rs 60.22 crore), were the other turnover toppers in that order.

Exports rose 36.36% to $24.82 billion in September 2011 over in September 2010. The cumulative value of exports for the first half of the current fiscal has risen 52.08% at $160.04 billion against $105.24 billion during the like period last year. Meanwhile, imports grew 17.2% to $34.58 billion in September 2011 over September 2010, resulting in a monthly trade deficit of $9.67 billion. The total imports in the current fiscal till September went up to $233.5 billion, a rise of 32.41% against $176.36 billion in the first six months of 2010-11. The trade deficit for the April-September period now stands at $73.46 billion.

India's manufacturing activity in October expanded--though modestly--indicating an improvement in business conditions from a month ago as growth in new orders accelerated, a survey showed Tuesday, 1 November 2011. The seasonally adjusted HSBC Purchasing Managers' Index, prepared by Markit, rose to 52 in October from 50.4 in September. A figure above 50 indicates expansion.

Tight capacity is evident from a rising backlog of work, lengthening supplier delivery times and reported difficulties filling vacancies, said Leif Eskesen, chief economist for India and Asean at HSBC. Not surprisingly, input and output prices continued to rise at a rapid pace, he added. HSBC said the pace of growth in new orders in October was the fastest in three months, but still remained below the historic average as export demand was muted.

The recent data show employment in the Indian manufacturing sector fell for the third straight month and demand for higher wages made it difficult to fill vacant positions. But input prices rose substantially in October, suggesting that inflationary pressures remain firmly in place.

RBI announced a 25 basis points hike in its key policy rate viz. the repo rate to 8.5% after half-yearly review of the monetary policy on 25 October 2011. The central bank cut its GDP growth forecast for the current fiscal year through March 2012 to 7.6% from 8% earlier. But it retained its March-end inflation projection of 7%. RBI said the projected inflation trajectory indicates that the inflation rate will begin falling in December 2011 (January 2012 release) and then continue down a steady path to 7% by March 2012. It is expected to moderate further in the first half of 2012-13. This reflects a combination of commodity price movements and the cumulative impact of monetary tightening. Further, moderating inflation rates are likely to impact expectations favourably.

Food inflation has accelerated to a six-month high, propelled by soaring vegetable prices and highlighting limitations of the Reserve Bank of India's monetary intervention after it raised rates for the 13th time in 19 months recently. Data released by the government last week showed food inflation rose to 11.43% year on year for the week to October 15, compared with 10.6% in the preceding week, driven by a 25% jump in vegetable prices even as prices of food articles increased 0.25%.

European stocks sank early on Tuesday after Greek prime minister called a referendum on the latest bailout deal, risking a new euro zone crisis, while data showed China's factory activity slowed to a near three-year low. Key benchmark indices in UK, France and Germany were sharply down by 2.55% to 4.33%.

Greek Prime Minister George Papandreou late Monday unexpectedly called for a referendum on the latest bailout plan in the face of growing public anger over further austerity measures and a deepening recession. The move comes after European leaders last week announced a three-pronged plan to cut Greece's debt load by writing down 50% of the value of government bonds held by banks and other private investors, recapitalizing European banks and boosting the firepower of the euro-zone bailout fund.

Italian and Spanish bonds yields surged on Monday as the post-European Union summit enthusiasm in risky assets fizzled out.

The Group of 20 leaders will convene Nov. 3-4 in Cannes, France, a week after euro-area authorities pledged to magnify the capacity of their rescue fund to 1 trillion euros ($1.4 trillion) and look beyond their borders for help in combating the debt turmoil posing the biggest threat to global economic growth. Europe has the capability to overcome its difficulties, Chinese President Hu Jintao said at a briefing yesterday in Vienna.

World stocks surged last month after Europe's agreement on Greece boosted confidence the region's sovereign-debt crisis would be contained, US economic growth accelerated and China hinted at easing monetary policy.

Asian stocks fell on Tuesday as softer-than-expected Chinese manufacturing data and fresh worries about the euro-zone debt crisis dulled the appeal of risk assets. Key benchmark indices in Hong Kong, Indonesia, Japan and Singapore were down by between 1.70% to 2.79%. Key benchmark indices in China, South Korea and Taiwan were up 0.03% and 0.45%.

Two closely watched measures of Chinese manufacturing released Tuesday showed the sector growing in October, albeit at a slow rate. China's official manufacturing Purchasing Managers Index (PMI) fell to 50.4 in October, slowing from the prior month's reading of 51.2, but still above the 50 level that separates expansion from contraction. However, the result was well below market expectations. A privately compiled version of the PMI, published by HSBC, printed at 51, rising from a mildly contractionary 49.9 reading in September. Both PMI surveys showed a drop for input prices, easing concerns about Chinese inflation.

Trading in US index futures indicated that the Dow could fall 150 points at the opening bell on Tuesday, 1 November 2011. Around 105 US companies are set to report earnings this week, including Comcast Corp. on Wednesday, 2 November 2011 and Prudential Financial on Thursday, 3 November 2011.

The influential US non-farm payroll data for October 2011 is set for release on Friday, 4 November 2011. The report is expected to show non-farm payrolls rose by just 90,000 in October, after a rise of 103,000 in September. Economic data on Friday, 28 October 2011, showed US consumer sentiment improved in October for the second month in a row as consumers felt more upbeat about the economy's prospects.

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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. 

Sebi clears Diageo-United Spirits open offer

The deal was stuck since November following objections raised by Sebi

Samie Modak and Aneesh Phadnis / Mumbai Feb 05, 2013

Buy Call was given in U B Holdings Ltd, to Paid Group members at Rs.85-86 a couple of days back and also on Today in the morning at Rs.86 and in the afternoon at Rs.88-89. 

Securities and Exchange Board of India has cleared Diageo's open offer to United Spirits Limited's (USL) minority shareholders, paving the way for conclusion of the Rs 11,000 crore deal between the two liquor giants.
The deal was stuck since last November following objections raised by the stock market regulator over the "put" option in purchase agreement and the offer price quoted by Diageo.
" Sebi on January 31 issued final observations in the matter. We believe that Sebi may have asked the companies to make certain changes in the purchase agreement. However, complete details are not known yet," a stock market expert said.  
The deal was facing hurdles on account of the put options in the share purchase agreement, which give the United Breweries Group the right to sell its remaining stake in USL within seven years. As this is a forward contract, it violates takeover laws.
In the past, too, Sebi has taken a tough stance against such agreements, including the deal between Vedanta Resources and Cairn Energy.
Though Diageo and USL can appeal against Sebi’s stand, given the precedence in the case of such clauses, it is unlikely to do so. A senior group official said it intended to find solutions to “all aspects raised by regulators”.
On November 9, Diageo agreed to acquire 27.4% stake in USL by purchasing shares from existing promoters and preferential allotment of shares. On the same day, it had also announced a mandatory open offer to buy additional 26% stake at Rs 1,440 a share.
Diageo had considered November 9, the day of share purchase agreement, as the public announcement date. However, according to Sebi regulations, the date of shareholder approval (December 14) should be considered the date of public announcement. If December 14 is considered the reference date, the open offer price would be higher, as the USL stock had risen after November 9.
At a board meeting on January 18, Sebi had said the date of board resolution authorising a preferential allotment, not the date of special resolution, should be the relevant date for triggering open offer obligations and determining the offer price. However, experts said this would be effected prospectively, adding it wouldn’t be applicable to the Diageo-USL deal.
The United Spirits stock was trading flat at Rs 1,854 at Bombay Stock Exchange on Tuesday afternoon.

Courtesy: Business Standard 

Market Pulse

After an initial volatility, stocks extended early gains and hit fresh intraday high in morning trade.

At 11:07 IST, the barometer index, the S&P BSE Sensex, was trading at 33,877.68 up 103.02 points or 0.31% and NSE was seen at 10,400.75 up 22.35 points or 0.22%. Metal and mining stocks gained. Telecom stocks saw mixed trend.

Stocks struggled for direction in opening trade amid mild volatility. Soon the key benchmark indices nudged higher and posted small gains in early trade.

The S&P BSE Mid-Cap index was up 0.42%. The S&P BSE Small-Cap index was up 0.43%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,366 shares rose and 808 shares fell. A total of 99 shares were unchanged. Breadth was negative in early trade.

Overseas, Asian stocks were trading lower as Treasury yields climbed back toward recent four-year highs. Chinese markets will reopen on Thursday, 22 February 2018. US markets remained closed yesterday, 19 February 2018 in observance of Presidents Day.

Back home, Tata Steel (up 1.51%), Hero MotoCorp (up 1.3%) and TCS (up 1.21%) were the top gainers from the Sensex pack.

IndusInd Bank rose 0.85% after the bank said it has no direct credit exposures to Nirav Modi nor any indirect credit exposures basis the Letter of undertaking (LOU) issued by Punjab National Bank (PNB). As regards Gitanjali Gems, the bank has a small, two digit exposure, not linked to any LOUs. The announcement was made during market hours today, 20 February 2018.

Metal and mining stocks gained. Vedanta (up 2.22%), JSW Steel (up 1.39%), Tata Steel (up 1.6%), Steel Authority of India (Sail) (up 2.12%), National Aluminium Company (up 1.32%), Hindustan Zinc (up 1.41%), Jindal Steel & Power (up 1.56%), Hindalco Industries (up 1.56%), NMDC (up 2.41%), Hindustan Copper (up 0.8%) edged higher.

Telecom stocks saw mixed trend. Bharti Airtel (up 1.23%), Idea Cellular (up 0.67%), MTNL (up 1.09%) and Tata Teleservices (Maharashtra) (up 0.63%) gained. Reliance Communications (down 0.7%) fell.

Shares of Bharti Infratel fell 0.85%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

JSW Energy rose 1.2% after the company said it signed a pact with the Government of Maharashtra for the manufacturing electric vehicles and energy storage systems. In addition to the earlier Memorandum of Understanding (MoU) with the Government of Gujarat with respect to electric vehicles (EV) manufacturing and associated businesses, the company has now entered into another MoU with the Government of Maharashtra for setting up facilities for the manufacturing of EV and energy storage systems in the state of Maharashtra. The announcement was made after market hours yesterday, 19 February 2018.

Vascon Engineers rose 2.31% after the company said it formally signed an agreement with Lina Ashar Foundation, Mumbai to develop a built-to-suit property at one of the company's land holdings in Pune. The announcement was made after market hours yesterday, 19 February 2018.

Under the agreement, Vascon will construct and deliver a total builtup area of approximately 135,000 square feet (SqFt) on long term lease to Lina Ashar Foundation, the school operator, in phases. The planned Billabong High International School will provide state-of-the-art infrastructure in terms of design and facilities to create a unique learning experience that will be first of its kind in the city.

Today's Calls:

#TV Vision Ltd (up 4.93%) is doing well today and has hit the Upper Circuit at Rs.18.10 in the NSE.. I hope you (Premium Members and my Blog Readers) have completed averaging the scrip yesterday.

#Yesterday's Call to the Premium Members: Buy NIFTY FUTURE around 10330-10335, SL: 10275 (CASH/SPOT), T: 10404-10425 ==> Target achieved. Book Profits....

#Buy Raymond Ltd at around Rs.952, SL: Rs. 942, T: Rs. 971-978 on T+1 basis. This  is a pure chart based call. Exit Raymond Ltd around COST price of Rs.952. Call Closed.

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

Veddanta Ltd: Buy

CMP: Rs.92.20

A bunch of reforms in the power sector accompanied by smart city projects of the government of India, is likely to increase the demand for the building materials including steel, cement and aluminium. It is to be remembered that Vedanta Ltd is India’s biggest zinc miner.

Meanwhile, there are media reports that local governments and power suppliers, smelter executives in China are saying a bleak outlook for aluminium prices will leave them with no choice but to cut or halt production of the metal if power prices there are not reduced.

Power tariffs account for about 40% of production costs of aluminium smelters in China, the world's top producer and consumer of the metal. Any output reduction in China will help support weak prices of the metal.

Buy the scrip at the CMP of Rs.92.20 (NSE)5, for short term targets of Rs.106-109-112 and medium term targets of Rs.120-125.

BHEL: Buy

CMP: Rs.107

The public sector engineering behemoth, BHEL is looking to break out of the current ranges and is all poised to touch Rs.125-127, in the short term.

Those who have missed the 2nd rally of Vedanta Ltd can try this scrip, keeping a strict stop loss of Rs.103. This is a must buy for every portfolio, as the Narendra Modi government is betting on smart cities.

Coming to fundamentals it is seen that on account of the poor state of the entire power sector, BHEL’s receivables have remained high. The company’s receivables stood at Rs.35,900 crore, more than its annual revenue of Rs.30,667.63 crore in March 2015. However, its management pointed out that about 50% of it is deferred debt which will be due for collection once certain milestones are achieved and the remainder are collectibles, of which over Rs.10,000 crore are more than a year old.

The Kotak Securities says FY16 will be a strong year for Bhel with orders booked at Rs.28,300 crore and the company is L1 in about Rs.17,000 crore, most of which are expected next year. For the first nine month of the current fiscal, Bhel’s order inflow was Rs.35,000 crore which translates to around 9-10 GW of power equipment’s. JM Financial has pointed out that the company’s management hopes to end the year with 15-16 GW on inflows versus 4-5 GW in the previous year.

Consensus estimates of analysts suggest that the company can touch a revenue of around Rs 36,000 crore by FY18.

Moreober, BHEL is a debt-free company and if the government’s measures of Make in India and other electricity reforms are to take off, the company is ideally positioned to capitalise on it. Though 80% of current revenue and order book is from power sector (largely generation), BHEL has taken other initiative to augment growth in future in the other segments.

Industrials which accounts for nearly 20% of the revenue and order book and caters to segment like power transmission, railways, water treatment, defence and solar is likely to see action in the near to medium future.

The government’s initiative of strengthening the state electricity boards through UDAY is likely to see order flows increasing in the transmission sector rather than generation.

BHEL has significant presence in the field of power transmission in India with a wide range of transmission systems and products in its portfolio. The company is one of the leading players in transformers in the country and has started booking in big orders in the space.

In order to capitalise on the solar sector, the company is capitalising on its knowledge in the sector. BHEL manufactures space grade solar panel and space grade batteries in association with ISRO. All Indian satellites launched by ISRO are equipped with BHEL manufactured solar panels since 2002 and batteries since 2005. The company is planning to ramp up its cell & module production capacity and enhance EPC capabilities to address the domestic market demand.

In railways BHEL provides electrical propulsion system and its controls and accounts for more than 40% of electric locomotives in operation by Indian Railways. The company is augmenting its locomotive capacity and tying up with global companies to meet the increased demand from dedicated freight corridor.

BHEL is an established supplier for defence equipment. The company is working closely with various defence research institutes of the country to develop new products under the Make in India programme. It has also tied up to address the business opportunity of producing six submarines for Indian Navy.

While it is still early days for the industrial segment to provide the next leg of growth opportunity, but the BHEL is well placed to capitalise on the opportunity.

The company is available at less than its book value (RRs139.26), with nearly half of its market capitalisation in cash as per last balance sheet. Dividend yield at current price level is still around 1.08% thus giving some more room before it becomes very attractive.

Recently, there were some media reports that the state-run power gear maker BHEL had beaten Chinese rivals to bag a contract for building $1.6-billion coal-fired power plant in Bangladesh, giving the Narendra Modi government's "Make in India" initiative a shot in the arm and writing down a reference for similar projects worldwide.

BHEL has also beaten India's L&T to emerge as the lowest bidder for the plant to be built at Khulna, some 450 km south-west of capital Dhaka. The contract would be the biggest overseas power project for BHEL, which does not have a major footprint abroad. More importantly , the Bangladesh contract would help lay down a new reference for BHEL and qualify it to compete for projects worldwide.

The contract would also breathe life back into the company's order book, which has remained flat in the absence of greenfield projects being undertaken in recent times, especially in the private sector.

But the victory comes with a hefty dose of financial steroid in the form of interest equalisation support from the government and commitment of 70% funding at a concessional interest rate. The financial package was available to L&T also. The government bears part of the interest burden under the interest equalisation scheme so that the borrower does not pay the entire interest. The package includes a 20-year dollar-denominated loan at 1% above the benchmark Libor.

The government also supported BHEL by persuading Bangladesh to scrap a contentious clause in the bid. Initially, the project promoters--Bangladesh India Friendship Power Company, a joint venture between NTPC and Bangladesh Power Development Board wanted to qualify only suppliers who had a 500 mw plant operating overseas.

This would have disqualified Bhel since it does not have any power plant of that size operating abroad.

However, this clause was scrapped after New Delhi took up the matter with Dhaka. The contract marks a reversal of fortune for BHEL, which has been lagging Chinese competitors who usually sweeten their bids with soft financing and credit lines for other projects from the go vernment.

The groundwork for the power plant was laid during the 2010 visit of Bangladesh PM Sheikh Hasina to India. An agreement envisaging wide-ranging energy ties between the two sides was signed during the visit. India has laid a transmission line to link the grids of the two countries and supplying 500 mw through it.

Besides, on the Budget day, the FM announced some measures, which are likely too be a major boost for power sector--at least some sentimental push. This may result in more power equipment orders for the company. The Finance Minister Arun Jaitley said the government has a target of 100% village electrification by May 1, 2018.

Chartically speaking, the stock closed above its 21 DSMA, which reflects its bullish trend. Also, you can see that "Three White Soldiers" pattern, has been formed on the daily candle stick chart, with an inverted hammer in between; again showing that the bulls are not ready to give up the fight and is infact in a leading position.

Note: The scrip of BHEL was recommended to the Premium Group members during market hours, today (Friday).