RBI REFERENCE RATE:
- USDINR : 55.7215
- EURINR : 69.6555
- GBPINR : 87.9508
- JPYINR : 71.0400
RUPEE DESK - RBI REFERENCE RATE: 31.08.2012
Kences1 : Free Currency Tips, 3rd Session: 31.08.2012
Buy USDINR Sa 55.9800 SL 55.8950 Target 56.0575 / 56.0975
Short USDINR Sb 55.8900 SL 55.9750 Target 55.8125 / 55.7725
----------------------------------------------------------------------------------------------
Buy EURINR Sa 69.9500 SL 69.8450 Target 70.0475 / 70.0875
Short EURINR Sb 69.8325 SL 69.9375 Target 69.7350 / 69.6950
----------------------------------------------------------------------------------------------
Buy GBPINR Sa 88.2700 SL 88.2000 Target 88.3675 / 88.4075
Short GBPINR Sb 88.2000 SL 88.2700 Target 88.1025 / 88.0625
----------------------------------------------------------------------------------------------
Buy JPYINR Sa 71.2700 SL 71.2000 Target 71.3675 / 71.4075
Short JPYINR Sb 71.2000 SL 71.2700 Target 71.1025 / 71.0625
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
Buy EURINR Sa 69.9500 SL 69.8450 Target 70.0475 / 70.0875
Short EURINR Sb 69.8325 SL 69.9375 Target 69.7350 / 69.6950
----------------------------------------------------------------------------------------------
Buy GBPINR Sa 88.2700 SL 88.2000 Target 88.3675 / 88.4075
Short GBPINR Sb 88.2000 SL 88.2700 Target 88.1025 / 88.0625
----------------------------------------------------------------------------------------------
Buy JPYINR Sa 71.2700 SL 71.2000 Target 71.3675 / 71.4075
Short JPYINR Sb 71.2000 SL 71.2700 Target 71.1025 / 71.0625
----------------------------------------------------------------------------------------------
Kences1 :Free Currency Trading Tips, 2nd Session: 31.08.2012
Buy USDINR Sa 56.0600 SL 55.9325 Target 56.1375 / 56.1775
Short USDINR Sb 55.9100 SL 56.0375 Target 55.8325 / 55.7925
--------------------------------------------------------------------------------------------
Buy EURINR Sa 70.0075 SL 69.8925 Target 70.1050 / 70.1450
Short EURINR Sb 69.8750 SL 69.9900 Target 69.7775 / 69.7375
--------------------------------------------------------------------------------------------
Buy GBPINR Sa 88.4050 SL 88.2700 Target 88.5025 / 88.5425
Short GBPINR Sb 88.2450 SL 88.3800 Target 88.1475 / 88.1075
--------------------------------------------------------------------------------------------
Buy JPYINR Sa 71.3725 SL 71.2150 Target 71.4725 / 71.5125
Short JPYINR Sb 71.1825 SL 71.3400 Target 71.0825 / 71.0425
--------------------------------------------------------------------------------------------
KENCES1 : FREE COMMODITY INTRADAY JOBBING CALLS: 31.08.2012
BUY CRUDEOIL (SEP) SA 5290 SL 5270 TGT 5300 / 5310
BUY LEAD (SEP) SA 108.75 SL 108.60 TGT 108.90 / 109.10
BUY NICKEL (SEP) SA 904 SL 901.5 TGT 906.5 / 909
BUY SILVER SA 56900 SL 56750 TGT 56970 / 5710
BUY ZINC (SEP) SA 102.65 SL 102.45 TGT 102.80 103
BUY LEAD (SEP) SA 108.75 SL 108.60 TGT 108.90 / 109.10
BUY NICKEL (SEP) SA 904 SL 901.5 TGT 906.5 / 909
BUY SILVER SA 56900 SL 56750 TGT 56970 / 5710
BUY ZINC (SEP) SA 102.65 SL 102.45 TGT 102.80 103
Note : FREE CALLS IS DIFFERENT FROM OUR PAID CALLS, FOR PAID CALLS CONTACT: 9094047040, We are not suggesting to trade with our free calls always, Because we cannot assure the success rate for all our free calls. Kindly subscribe our paid package.
Kences1 : FREE EQUITY INTRADAY CASH & FUT TIPS: 31.08.2012
SHORT BANKNIFTY FUT SB 10070 SL 10095 TGT 10045 / 10010
SHORT AMBUJACEM SB 184.5 SL 191.5 TGT 181.5 / 177
SHORT HINDALCO SB 103.5 SL 105.5 TGT 102.5 / 101
BUY HDFCBANK FUT SA 598 SL 594 TGT 602.5 / 608
SHORT AXISBANK FUT SB 1003 SL 1010 TGT 998 / 992
SHORT HINDALCO SB 103.5 SL 105.5 TGT 102.5 / 101
BUY HDFCBANK FUT SA 598 SL 594 TGT 602.5 / 608
SHORT AXISBANK FUT SB 1003 SL 1010 TGT 998 / 992
Note : FREE CALLS IS DIFFERENT FROM OUR PAID CALLS, FOR PAID CALLS CONTACT: 9094047040, We are not suggesting to trade with our free calls always, Because we cannot assure the success rate for all our free calls. Kindly subscribe our paid package.
KENCES : Free Currency Jobbing Calls For Brokers: 31.08.2012
Free Currency Jobbing Calls For Brokers: 31.08.2012
Buy USDINR SA 55.95 SL 55.90 TGT 55.9750 / 56.00
Note : FREE CALLS IS DIFFERENT FROM OUR PAID CALLS, FOR PAID CALLS CONTACT: 9094047040, We are not suggesting to trade with our free calls always, Because we cannot assure the success rate for all our free calls. Kindly subscribe our paid package.
Kences1 - FREE INTRADAY CURRENCY TWO WAY CALLS: 31.08.2012
Buy USDINR Sa 55.9625 SL 55.8850 Target 56.0400 / 56.0800
Short USDINR Sb 55.8825 SL 55.9600 Target 55.8050 / 55.7650
-------------------------------------------------------------------------------------------------
Buy EURINR Sa 69.9825 SL 69.9075 Target 70.0800 / 70.1200
Short EURINR Sb 69.9050 SL 69.9800 Target 69.8075 / 69.7675
-------------------------------------------------------------------------------------------------
Buy GBPINR Sa 88.3300 SL 88.2275 Target 88.4275 / 88.4675
Short GBPINR Sb 88.2150 SL 88.3175 Target 88.1175 / 88.0775
-------------------------------------------------------------------------------------------------
Buy JPYINR Sa 71.2300 SL 71.1400 Target 71.3275 / 71.3675
Short JPYINR Sb 71.1325 SL 71.2225 Target 71.0350 / 70.9950
-------------------------------------------------------------------------------------------------
kences1 : FREE CURRENCY TIPS, 3rd Session: 30.Aug.2012
* Buy USDINR Sa 55.92 SL 55.8550 Target 55.9975 / 56.0375
* Short USDINR Sb 55.8575 SL 55.9225 Target 55.78 / 55.74
---------------------------------------------------------------------------------------
* Buy EURINR Sa 70.0725 SL 69.9875 Target 70.17 / 70.21
* Short EURINR Sb 69.9825 SL 70.0675 Target 69.885 / 69.845
---------------------------------------------------------------------------------------
* Buy GBPINR Sa 88.4475 SL 88.3325 Target 88.545 / 88.585
* Short GBPINR Sb 88.315 SL 88.4300 Target 88.2175 / 88.1775
---------------------------------------------------------------------------------------
* Buy JPYINR Sa 71.01 SL 70.9400 Target 71.1075 / 71.1475
* Short JPYINR Sb 70.94 SL 71.0100 Target 70.8425 / 70.8025
---------------------------------------------------------------------------------------
KENCES1 : Free Currency Tips 3rd Session currency calls
Buy USDINR Sa 55.935 SL 55.8650 Target 56.0125 / 56.0525
Short USDINR Sb 55.865 SL 55.9350 Target 55.7875 / 55.7475
--------------------------------------------------------------------------------------------------
Buy EURINR Sa 70.1425 SL 70.0325 Target 70.24 / 70.28
Short EURINR Sb 70.0175 SL 70.1275 Target 69.92 / 69.88
Buy EURINR Sa 70.1425 SL 70.0325 Target 70.24 / 70.28
Short EURINR Sb 70.0175 SL 70.1275 Target 69.92 / 69.88
--------------------------------------------------------------------------------------------------
Buy GBPINR Sa 88.45 SL 88.3750 Target 88.5475 / 88.5875
Short GBPINR Sb 88.3725 SL 88.4475 Target 88.275 / 88.235
Buy GBPINR Sa 88.45 SL 88.3750 Target 88.5475 / 88.5875
Short GBPINR Sb 88.3725 SL 88.4475 Target 88.275 / 88.235
--------------------------------------------------------------------------------------------------
Buy JPYINR Sa 71.065 SL 70.9800 Target 71.1625 / 71.2025
Short JPYINR Sb 70.975 SL 71.0600 Target 70.8775 / 70.8375
Buy JPYINR Sa 71.065 SL 70.9800 Target 71.1625 / 71.2025
Short JPYINR Sb 70.975 SL 71.0600 Target 70.8775 / 70.8375
kences1 : Mcx Currency Market Trend Update : 30.8.2012
CURRENCY MARKET TREND
LAST UPDATE : 30.08.2012 at 10.30Pm Hrs(IST)USDINR : UPTREND
EURINR : UPTREND
GBPINR : UPTREND
JPYINR : UPTREND
Free currency Tips : kences1 1 st Session calls : 30.08.2012
Buy USDINR Sa 55.9800 SL 55.9050 Target 56.0575 / 56.0975
Short USDINR Sb 55.9025 SL 55.9775 Target 55.8250 / 55.7850
----------------------------------------------------------------------------------------------
Buy EURINR Sa 70.1300 SL 70.0275 Target 70.2275 / 70.2675
Short EURINR Sb 70.0150 SL 70.1175 Target 69.9175 / 69.8775
----------------------------------------------------------------------------------------------
Buy GBPINR Sa 88.5150 SL 88.3800 Target 88.6125 / 88.6525
Short GBPINR Sb 88.3550 SL 88.4900 Target 88.2575 / 88.2175
----------------------------------------------------------------------------------------------
Buy JPYINR Sa 71.0975 SL 71.0000 Target 71.1950 / 71.2350
Short JPYINR Sb 70.9900 SL 71.0875 Target 70.8925 / 70.8525
----------------------------------------------------------------------------------------------
Short USDINR Sb 55.9025 SL 55.9775 Target 55.8250 / 55.7850
----------------------------------------------------------------------------------------------
Buy EURINR Sa 70.1300 SL 70.0275 Target 70.2275 / 70.2675
Short EURINR Sb 70.0150 SL 70.1175 Target 69.9175 / 69.8775
----------------------------------------------------------------------------------------------
Buy GBPINR Sa 88.5150 SL 88.3800 Target 88.6125 / 88.6525
Short GBPINR Sb 88.3550 SL 88.4900 Target 88.2575 / 88.2175
----------------------------------------------------------------------------------------------
Buy JPYINR Sa 71.0975 SL 71.0000 Target 71.1950 / 71.2350
Short JPYINR Sb 70.9900 SL 71.0875 Target 70.8925 / 70.8525
----------------------------------------------------------------------------------------------
FREE CURRENCY CALLS :kences1 4TH SESSION: 29.08.2012
Buy USDINR Sa 55.9875 SL 55.9250 Target 56.0650 / 56.1050
Short USDINR Sb 55.9275 SL 55.9900 Target 55.8500 / 55.8100
----------------------------------------------------------------------------------------
Buy EURINR Sa 70.2175 SL 70.1025 Target 70.3150 / 70.3550
Short EURINR Sb 70.0850 SL 70.2000 Target 69.9875 / 69.9475
----------------------------------------------------------------------------------------
Buy GBPINR Sa 88.4150 SL 88.3200 Target 88.5125 / 88.5525
Short GBPINR Sb 88.3100 SL 88.4050 Target 88.2125 / 88.1725
----------------------------------------------------------------------------------------
Buy JPYINR Sa 71.2225 SL 71.1200 Target 71.3200 / 71.3600
Short JPYINR Sb 71.1075 SL 71.2100 Target 71.0100 / 70.9700
----------------------------------------------------------------------------------------
Free Currency tips : kences1 - 3rd Session Calls: 29.08.2012
Buy USDINR Sa 55.9075 SL 55.8425 Target 55.9850 / 56.0250
Short USDINR Sb 55.8450 SL 55.9100 Target 55.7675 / 55.7275
--------------------------------------------------------------------------------------------
Buy EURINR Sa 70.1475 SL 70.0300 Target 70.2450 / 70.2850
Short EURINR Sb 70.0125 SL 70.1300 Target 69.9150 / 69.8750
--------------------------------------------------------------------------------------------
Buy GBPINR Sa 88.2875 SL 88.1725 Target 88.3850 / 88.4250
Short GBPINR Sb 88.1550 SL 88.2700 Target 88.0575 / 88.0175
--------------------------------------------------------------------------------------------
Buy JPYINR Sa 71.0925 SL 71.0100 Target 71.1900 / 71.2300
Short JPYINR Sb 71.0050 SL 71.0875 Target 70.9075 / 70.8675
--------------------------------------------------------------------------------------------
kences1 : Free Currency Jobbing Calls For Brokers: 29.08.2012
Short EURINR SB (AUG) 69.89 SL 69.94 TGT 69.86 / 69.82 (Achieved)
Short GBPINR (SEP) SB 88.15 SL 88.18 TGT 88.13 / 88.10
Buy USDINR (SEP) SA 55.87 SL 55.82 TGT 55.91 / 55.95
Note : FREE CALLS IS DIFFERENT FROM OUR PAID CALLS, FOR PAID CALLS CONTACT: 9094047040, We are not suggesting to trade with our free calls always, Because we cannot assure the success rate for all our free calls. Kindly subscribe our paid package.
Short GBPINR (SEP) SB 88.15 SL 88.18 TGT 88.13 / 88.10
Buy USDINR (SEP) SA 55.87 SL 55.82 TGT 55.91 / 55.95
Note : FREE CALLS IS DIFFERENT FROM OUR PAID CALLS, FOR PAID CALLS CONTACT: 9094047040, We are not suggesting to trade with our free calls always, Because we cannot assure the success rate for all our free calls. Kindly subscribe our paid package.
Free Intraday Currency 2nd Session Tips: 29.08.2012
Buy USDINR Sa 55.8600 SL 55.7950 Target 55.9375 / 55.9775
Short USDINR Sb 55.7975 SL 55.8625 Target 55.7200 / 55.6800
-----------------------------------------------------------------------------------------------
Buy EURINR Sa 70.0850 SL 70.0000 Target 70.1825 / 70.2225
Short EURINR Sb 69.9950 SL 70.0800 Target 69.8975 / 69.8575
-----------------------------------------------------------------------------------------------
Buy GBPINR Sa 88.2500 SL 88.1325 Target 88.3475 / 88.3875
Short GBPINR Sb 88.1150 SL 88.2325 Target 88.0175 / 87.9775
-----------------------------------------------------------------------------------------------
Buy JPYINR Sa 71.0125 SL 70.8850 Target 71.1100 / 71.1500
Short JPYINR Sb 70.8625 SL 70.9900 Target 70.7650 / 70.7250
-----------------------------------------------------------------------------------------------
RUPEE DESK - FREE CURRENCY TRADING CALLS: 29.08.2012
Buy USDINR Sa 55.7150 SL 55.6375 Target 55.7925 / 55.8325
Short USDINR Sb 55.6350 SL 55.7125 Target 55.5575 / 55.5175
---------------------------------------------------------------------------------------------------
Buy EURINR Sa 69.9850 SL 69.8800 Target 70.0825 / 70.1225
Short EURINR Sb 69.8675 SL 69.9725 Target 69.7700 / 69.7300
---------------------------------------------------------------------------------------------------
Buy GBPINR Sa 88.1075 SL 88.0100 Target 88.2050 / 88.2450
Short GBPINR Sb 88.0000 SL 88.0975 Target 87.9025 / 87.8625
---------------------------------------------------------------------------------------------------
Buy JPYINR Sa 70.8625 SL 70.7800 Target 70.9600 / 71.0000
Short JPYINR Sb 70.7750 SL 70.8575 Target 70.6775 / 70.6375
---------------------------------------------------------------------------------------------------
RUPEE DESK - RBI REFERENCE RATE: 28.08.2012
RBI REFERENCE RATE:
- USDINR : 55.7795
- EURINR : 69.6210
- GBPINR : 88.0424
- JPYINR : 71.0100
CurrencyTips India|Currency trading Tips|Free Currency Tips.
CurrencyTips India|Currency trading Tips|Free Currency Tips.
We are Leading Indian Stock Market Trading Tips Providers for Equity,Commodity and Currency Market Traded in NSE,MCX,NCDEX And MCX-SX respectively
Free Currency calls, Currency Tips, Currency Tips India Currency Trading Tips, Tips for Currency, Currency Trading, free Currency Tips, Free Currency Trading Tips,live currency Tips,USDINR Tips,GBPINR Tips,EURINR Tips,JPYINR tips
Free Currency USDINR Tips - RUPEE DESK: Free Currency 3rd Session Calls: 28.08.2012
Free Currency USDINR Tips - RUPEE DESK: Free Currency 3rd Session Calls: 28.08.2012: Buy USDINR Sa 55.8275 SL 55.7525 Target 55.9050 / 55.9450 Short USDINR Sb 55.7500 SL 55.8250 Target 55.6725 / 55.6325 --------------------...
Free Currency USDINR Tips - RUPEE DESK: RUPEE DESK - FREE CURRENCY JOBBING CALLS FOR BROKE...
Free Currency USDINR Tips - RUPEE DESK: RUPEE DESK - FREE CURRENCY JOBBING CALLS FOR BROKE...: Short USDINR SB 55.78 SL 55.85 TGT 55.75 / 55.70 (Achieved) Short EURINR SB 69.63 SL 69.68 TGT 69.60 / 69.55 Short JPYINR SB 71.02 SL 71...
Free Currency USDINR Tips - RUPEE DESK: Free Currency Trading Tips, 2nd Session: 28.08.201...
Free Currency USDINR Tips - RUPEE DESK: Free Currency Trading Tips, 2nd Session: 28.08.201...: Buy USDINR Sa 55.8275 SL 55.7325 Target 55.9050 / 55.9450 Short USDINR Sb 55.7225 SL 55.8175 Target 55.6450 / 55.6050 ------------------...
Free Currency USDINR Tips - RUPEE DESK: Free MCX Currency Intraday Calls: 28.08.2012
Free Currency USDINR Tips - RUPEE DESK: Free MCX Currency Intraday Calls: 28.08.2012: Buy USDINR Sa 55.8900 SL 55.8050 Target 55.9675 / 56.0075 Short USDINR Sb 55.8000 SL 55.8850 Target 55.7225 / 55.6825 ------------------...
Indian Markets Outlook for the week (27-31.08.2012)
Benchmark indices are likely to trade volatile next week as investors will rollover their positions in the August derivatives series to the next month due to the expiry of current month contracts on Thursday. Markets expect the National Stock Exchange's 50-scrip Nifty to trade between 5300 and 5480, but they are unsure of where the August contract will expire.
While some expect the expiry to be in a range of 5350-5400, others expect it to be closer to 5450 as there are a lot of long positions in Fifty’s August contract, which will get rolled over to September. Spot Nifty yesterday ended at 5386.70, down 28.65 points or 0.5% from Thursday, while the August contract closed at 5407.00, down 20.15 points or 0.4%. BSE's 30-stock Sensex closed at 17783.21, down 67.01 points or 0.4%. In the week to date, the spot indices have risen by a mere 0.4%, with the Nifty swinging between 5340 and 5450 due to a lack of any triggers. Yesterday, total turnover in the cash segments of the BSE and the NSE stood at around 108 bln rupees versus 120 bln rupees on Thursday.
Overseas markets will remain on the radar, especially amid an absence of any major domestic events. The market will particularly eye a meeting of Greek Prime Minister Antonis Samaras and German Chancellor Angela Merkel, due on yesterday, where in the former will seek an extension on the deadline given to debt-troubled country to meet its budget austerity requirements. Germany's Finance Minister Wolfgang Schaeuble has already contested the idea of giving Greece the additional time and said that doing so will only raise the cost to creditors. Samaras will meet French President Francois Hollande on Saturday to discuss the issue.
Next week, US Federal Reserve Chairman Ben Bernanke's address to an annual gathering of central bankers in Jackson Hole, Wyoming, will also keep investors clued in. The market will eye the Central Statistics Office's data of India's gross domestic product growth for Apr-Jun, due on Aug 31. If the government does not very soon speed up policy reforms and improve foreign investments and economic growth, then this sideways (rangebound) movement in the market could break and equities could face a risk-off downward rally.
The Parliament was stalled for a fourth straight day yesterday due to an uproar over the Comptroller and Auditor General of India's report on coal block allocation. Among sectors, market participants are bullish on pharmaceutical, consumer goods, automobile, and private-sector banking stocks. Investors of telecommunications companies will eye the outcome of a Supreme Court hearing on a Department of Telecommunications plea on Monday, seeking extension of the deadline for conducting 2G spectrum auction to Nov 12 from Aug 31.
www.rupeedesk.in
Cement Stocks Outlook for the week (27-31.08.2012)
Stocks of major cement companies are seen in a narrow range next week amid lack of sector-specific triggers. Some stock-specific action in the sector is possible. Next week, stocks of cement companies may track the market. The next trigger for the sector will come from the data on cement despatches in August, to be released on Sep 1.
This week, stocks of India Cements and Madras Cements rose more than 6% due to attractive valuations. Shree Cement shares rose 5% after the company Thursday reported better-than-expected earnings for Apr-Jun. In Apr-Jun, Shree Cement's net profit surged to 3.51 bln rupees from 550.1 mln rupees a year ago due to improved realisations and sales volumes. Net sales in the quarter increased 43% to 145.53 bln rupees.
www.rupeedesk.in
Telecom Stocks Outlook for the week (27-31.08.2012)
The performance of telecom stocks will remain subdued in the coming week as the industry is faced with regulatory obstacles amid a dearth of positive trigger in the near term. Lacklustre performance by industry leader Bharti Airtel in its Apr-Jun result and management commentary on the company's expectations of margin dilution in the coming quarters will keep the stock under pressure in the medium term.
Even though fundamentals remain weak for Bharti Airtel, the stock seems to be in the oversold territory on the technical chart and may see some value buying in the coming sessions, which may drive the stock up to near 265 rupees. Trend in Idea Cellular is expected to be sideways, with resistance at 78 rupees and support at 70 rupees.
www.rupeedesk.in
IT Stocks Outlook for the week (27-31.08.2012)
Stocks of domestic information technology companies are seen moving in a narrow range around current levels next week backed by investor confidence for the sector despite weak global markets. Most technology companies stocks ended up this week amid a weak broad market because of positive sectoral view. Overall, the outlook on the sector is positive but we don't see any incremental deviations in the short-term. There are no changes in growth expectations. We are expects the impact to be industry-wide and not restricted to Infosys as the pressure to hire staff overseas will mount.
We believe further upside should be capped as there are limited signs of business improvements. Our technical of Infosys will face resistance at 2,500-2,550 rupees and may find support at 2,350 rupees. Stocks of Wipro, which are expected to see some profit booking, will find support in the range of 350-353 rupees. We are expected to face resistance in the range of 375-378 rupees. TCS shares may maintain their up-trend helped by the company's consistent performance. No major selling is expected on this stock.
www.rupeedesk.in
Capital Goods Stocks Outlook for the week (27-31.08.2012)
Stocks of most capital goods companies are expected to trade in a narrow band with a positive bias over the next five sessions amid lack of triggers. Weak business outlook for most companies in this sector continues to weigh on investor sentiment. Generally, across industrials managements body language and commentary remained weak on account of sustained deferrals and delays from clients across power equipment, oil and gas, metals, cement sectors. Weak industrial demand coupled with regulatory hurdles is impacting the sector's overall profitability.
Among the large companies, support for Larsen & Toubro is seen at 1,392 rupees, and resistance at 1,482 rupees. The stock has already rallied a lot and there has been some profit booking over the past four-five trading sessions,rall sentiment for the stock is positive. Bharat Heavy Electricals has been trading sideways for some sessions.
www.rupeedesk.in
Auto Stocks Outlook for the week (27-31.08.2012)
Stocks of automobile companies are seen tracking the broad market next week. Tuesday's annual general meeting of the country's largest carmaker Maruti Suzuki India Ltd will be eyed for any major announcements. Auto stocks are seen tracking the broad market in the coming week on lack of any stock-specific triggers. Some activity is likely in the last few trading sessions, as build-up is expected on monthly sales numbers due over the next weekend. Automakers will detail their monthly sales over the next weekend, and the numbers are eyed by the market for cues.
The market is also awaiting takeaways from the worker unrest-hit Maruti Suzuki's annual general meeting. Any major announcement by the management, especially regarding its proposed plant in Gujarat, will act as a trigger for the stock.
www.rupeedesk.in
Bank Stocks Outlook for the week (27 - 31.08.2012)
Stocks of banks may remain slightly weak, with investors eyeing cues from broad market. The overall mood remains negative for the banking sector as asset quality is set to face pressure in weak economic environment. Any positive cues from the government or broad market are the only key positives that can lead to a reversal in trend for bank stocks. Purchase of stocks of private banks over state-owned banks, which have been facing stress on asset quality and profitability. Out performance by private sector banks on operational performance and asset quality issues are the prime reasons for the growing valuation gap between private and state-owned banks.
While the private sector banks continue to command premium valuation, the PSU (public sector undertaking) banks continue to languish at lower multiple primarily due to asset quality issues. Our top picks in private banking space include - Axis Bank, YES Bank, J&K Bank, ING Vysya Bank, while, we prefer Bank of Baroda and Indian Bank from public sector banks. Any re-rating or revaluing of state-owned banks was likely only after they showed a sustained improvement in asset quality and clear signs of recovery in macroeconomic conditions. Bank is currently maintaining a cautious stance, as it was facing stress in construction equipment, commercial vehicle segment and large corporate segment. Limited loan exposure towards stressed sectors is the only saving grace for Bank of Baroda as tepid loan book growth, rising loan delinquency and a 37% CAGR likely in its restructured loan book over 2012-14 (Apr-Mar) remain key areas of concern.
www.rupeedesk.in
Pharma Stocks Outlook for the week (27 - 31.08.2012)
Pharmaceutical stocks are seen gaining next week, bucking the trend in the broad market which is expected remain volatile following the expiry of the August derivatives series. As investors roll over their positions to the next month, most would prefer save havens like pharmaceutical stocks which are not seen as unstable as others. Sun Pharma continues to strike a balance between short-term opportunities and laying the foundation to drive sustainable growth in new orbits. Stocks of Glenmark Pharmaceuticals are seen gaining next week following the International Centre of Dispute Resolution's ruling in favour of the company on the arbitration claim it filed against Napo Pharmaceuticals.
Glenmark, among other things, was seeking a ruling for its exclusive rights to develop, commercialise and distribute diarrhoea treating drug Crofelemer in 140 countries. The development may prove to be a big boost for the company," brokerage Networth Capital said in a report. Next week the stock is seen facing a resistance at 420 rupees and finding support at 405 rupees. However, if the stock falls below the support level, a correction is seen in the 390-385-rupee level, a technical analyst with a domestic brokerage said. Shares of Ranbaxy Laboratories are seen giving up their gains by early next week on profit booking. The counters gained after the company received the US Food and Drug Administration's approval for withdrawing 27 abbreviated new drug applications.
Ranbaxy has withdrawn the ANDAs as part of the consent decree signed with the US FDA to resolve issues related to violations of good manufacturing practices. Avendus Securities said the lifting of the import alert on Dr Reddy's Laboratories' Mexico-based subsidiary by the US FDA was positive, but the brokerage did not expect any immediate earnings benefits for the company. Next week, the stock is seen facing resistance at 1,720 rupees and finding support at 1,630 rupees, the technical analyst said. Above the resistance level, the stock trend looked positive. Talking about the BSE Healthcare Index, he said it would be rangebound with a positive bias next week.
Glenmark, among other things, was seeking a ruling for its exclusive rights to develop, commercialise and distribute diarrhoea treating drug Crofelemer in 140 countries. The development may prove to be a big boost for the company," brokerage Networth Capital said in a report. Next week the stock is seen facing a resistance at 420 rupees and finding support at 405 rupees. However, if the stock falls below the support level, a correction is seen in the 390-385-rupee level, a technical analyst with a domestic brokerage said. Shares of Ranbaxy Laboratories are seen giving up their gains by early next week on profit booking. The counters gained after the company received the US Food and Drug Administration's approval for withdrawing 27 abbreviated new drug applications.
Ranbaxy has withdrawn the ANDAs as part of the consent decree signed with the US FDA to resolve issues related to violations of good manufacturing practices. Avendus Securities said the lifting of the import alert on Dr Reddy's Laboratories' Mexico-based subsidiary by the US FDA was positive, but the brokerage did not expect any immediate earnings benefits for the company. Next week, the stock is seen facing resistance at 1,720 rupees and finding support at 1,630 rupees, the technical analyst said. Above the resistance level, the stock trend looked positive. Talking about the BSE Healthcare Index, he said it would be rangebound with a positive bias next week.
FMCG Stocks Outlook for the week (27-31.08.2012)
Stocks of major fast-moving consumer goods companies are expected to continue to rise, outperforming the market in the week ahead. This week, all major FMCG stocks gained with Hindustan Unilever rising 2.9%, Dabur India 3.2%, and ITC 1.2%. Sustained buying, mainly from domestic institutional investors, lifted the stocks. The BSE FMCG index gained 1.8% as compared to the 0.5% rise witnessed by broader indices.
Stocks of Hindustan Unilever are trading at nearly 40 times price to equity, while those of Marico are trading around 34 times price to equity. Market watchers see this trend continuing given the strong earnings posted by FMCG companies. The India consumption story is strong, which is leading to sustained buying, as FMCG faces the consumer directly and fulfils basic needs. Major FMCG companies are also expected to continue showing sustained, high single-digit and double-digit sales volume growth in the near term. It is these performance expectations that are leading to buying of these stocks.
www.rupeedesk.in
Steel Stocks Outlook for the week (27-31.08.2012)
Steel Stocks Outlook for the week (27-31.08.2012)
Stocks of major steel companies are seen down next week due to the dull demand scenario which has led to inventory build-up, in turn disturbing the domestic steel demand-supply equation. Worry over economic recovery in leading steel consumers such as China and Europe has dampened demand for the commodity in the global market, consecutively infusing a subdued trend in the local steel market. Due to mounting inventories, large domestic steel producers are offering products at discounted rates and some also offering cash-back offer in order to promote sales.This clearly shows there is no much demand for steel in the domestic market. Currently, Tata Steel is offering 2% cash back on every purchase of Tata Tiscon TMT bars, said media reports.
However, JSW Steel shares look positive next week. We recommend buy in JSW Steel above 759 rupees which is also a good resistance level. Support for the stock is seen at 706 rupees. In the current scenario, where local steel demand is dull and JSW Steel is facing shortage of good quality iron ore, the company has been performing well. On technical charts, Tata Steel and Steel Authority of India look weak in coming sessions. Tata Steel may find support at 382 rupees and face resistance at 415 rupees, while Steel Authority of India may trade in 81-89 rupees range.
India Stocks Outlook for the week (21-24.08.2012)
Stock indices may continue to move in a tight range next week, with overseas markets lending cues on Tuesday after a long weekend back home. Indian financial markets will be closed on Monday for Id-ul-Fitr. Yesterday, indices ended off highs as the Comptroller and Auditor General of India, in a report tabled in parliament, pegged the financial gain that private companies made due to the government's flawed coal allocation policy at a staggering 1.86 trln rupees.
The CAG also blamed the government for vitiating the tender process in the award of Madhya Pradesh-based 4,000 MW Sasan ultra mega power project to Reliance Power and helping the private sector generation company derive undue benefits to the tune of 290.33 bln rupees in the process. The CAG also alleged that the civil aviation ministry and the Airports Authority of India connived against the government's interests to blatantly favour the Delhi International Airport Ltd.
National Stock Exchange's 50-scrip Nifty ended at 5366.30, up 3.35 points or 0.1% from Thursday, and BSE's 30-stock Sensex closed at 17691.08, up 33.87 points or 0.2%. Traders see the Nifty in the band of 5300-5450 next week. Traded volume is expected to remain low due to subdued foreign investor participation. Yesterday, the combined turnover in the cash segments of the BSE and NSE was around 124 bln rupees, largely unchanged from Thursday.
Stocks of power companies are likely to remain weak. Reliance Power and Tata Power Co may see another 3-4% fall in coming days as both the companies have been named by CAG as having been favoured in coal mine allocation. On yesterday, Reliance Power shares ended down 5.9% at 87.65 rupees, and those of Tata Power closed down 4% at 97.25 rupees.
GMR Infrastructure is also expected to remain subdued. The stock ended down 3.1% at 20.55 rupees yesterday after the CAG said the GMR Group was given 196-acre for its Delhi International Airport for 60 mln rupees, while current value of the land is 240 bln rupees.
Stocks of consumer goods companies are likely to trade with a positive bias as investors would prefer to stick to defensive bets. Rich valuations, however, will limit the upside. Hindustan Unilever, which touched a lifetime high of 505.45 rupees yesterday, could see some profit booking on Tuesday. We expect the stock to consolidate in the range of 485-505 rupees next week. The scrip ended 1.8% higher at 503.40 rupees.
www.rupeedesk.in
The CAG also blamed the government for vitiating the tender process in the award of Madhya Pradesh-based 4,000 MW Sasan ultra mega power project to Reliance Power and helping the private sector generation company derive undue benefits to the tune of 290.33 bln rupees in the process. The CAG also alleged that the civil aviation ministry and the Airports Authority of India connived against the government's interests to blatantly favour the Delhi International Airport Ltd.
National Stock Exchange's 50-scrip Nifty ended at 5366.30, up 3.35 points or 0.1% from Thursday, and BSE's 30-stock Sensex closed at 17691.08, up 33.87 points or 0.2%. Traders see the Nifty in the band of 5300-5450 next week. Traded volume is expected to remain low due to subdued foreign investor participation. Yesterday, the combined turnover in the cash segments of the BSE and NSE was around 124 bln rupees, largely unchanged from Thursday.
Stocks of power companies are likely to remain weak. Reliance Power and Tata Power Co may see another 3-4% fall in coming days as both the companies have been named by CAG as having been favoured in coal mine allocation. On yesterday, Reliance Power shares ended down 5.9% at 87.65 rupees, and those of Tata Power closed down 4% at 97.25 rupees.
GMR Infrastructure is also expected to remain subdued. The stock ended down 3.1% at 20.55 rupees yesterday after the CAG said the GMR Group was given 196-acre for its Delhi International Airport for 60 mln rupees, while current value of the land is 240 bln rupees.
Stocks of consumer goods companies are likely to trade with a positive bias as investors would prefer to stick to defensive bets. Rich valuations, however, will limit the upside. Hindustan Unilever, which touched a lifetime high of 505.45 rupees yesterday, could see some profit booking on Tuesday. We expect the stock to consolidate in the range of 485-505 rupees next week. The scrip ended 1.8% higher at 503.40 rupees.
www.rupeedesk.in
Cement Stocks Outlook for the week (21-24.08.2012)
Stocks of major cement companies are expected to move in a narrow range with a positive bias next week. India’s financial markets are shut Monday for Id-ul-Fitr. Market participants expect demand for cement to be good this monsoon season as rains have been below normal. Usually, demand for cement falls in the season as construction activity stops due to rains.
Firm demand has led to increase in cement prices. "All-India average cement prices (in July) stood at 305 rupees/bag, an increase of around 10 rupees/bag month-on-month. The firming up of the prices was driven by a delay in monsoons coupled with an increase in freight and raw material costs. Also, the Apr-Jun earnings of most cement manufacturers have been good, which has boosted sentiment on the stocks of these companies.
Shree Cements, however, was among the companies that disappointed with their Apr-Jun numbers. This week, the stock fell as the company's net profit in the quarter declined 39% from a year ago to 620.7 mln rupees. Exceptional loss of 200 mln rupees, foreign exchange loss of 250 mln rupees, and sharp rise in finance costs dragged down the company's bottomline.
Next week, UltraTech Cement shares are seen trading with a positive bias.
www.rupeedesk.in
Firm demand has led to increase in cement prices. "All-India average cement prices (in July) stood at 305 rupees/bag, an increase of around 10 rupees/bag month-on-month. The firming up of the prices was driven by a delay in monsoons coupled with an increase in freight and raw material costs. Also, the Apr-Jun earnings of most cement manufacturers have been good, which has boosted sentiment on the stocks of these companies.
Shree Cements, however, was among the companies that disappointed with their Apr-Jun numbers. This week, the stock fell as the company's net profit in the quarter declined 39% from a year ago to 620.7 mln rupees. Exceptional loss of 200 mln rupees, foreign exchange loss of 250 mln rupees, and sharp rise in finance costs dragged down the company's bottomline.
Next week, UltraTech Cement shares are seen trading with a positive bias.
www.rupeedesk.in
Pharma Stocks Outlook for the week (21-24.08.2012)
Pharmaceutical stocks are seen trading in a narrow range next week due to lack of any major trigger. Pharmaceutical stocks have entered a consolidation mode. The stocks should remain at the current levels for some time and then move up again. As of now, I believe pharma stocks should be rangebound as we do not see anything big, positive happening in the next few days.
BSE Healthcare Index is currently trading sideways to positive and it would continue the trend next week as well. Talking about stock specific movements, Cipla is set to see some downside in the weeks to come due to a one-off gain in Apr-Jun.
The nearly 450 basis points improvement in the company's operating margin was a result of lower proportion of antiretroviral drugs and higher contribution from anti-depressant segment drugs like escitalopram, or Lexapro, coupled with higher realisations because of improvement in utilisation of the company's Indore unit.
Shares of GlaxoSmithKline Pharmaceuticals may see some downside next week as the company has stopped operations at its Thane factory, with all employees having opted for the voluntary retirement scheme offered by the company.
Shares of Ranbaxy Laboratories are seen gaining next week due to the launch of an anti-diabetic generic pioglitazone hydrochloride tablets in the US market. Shares of Ranbaxy are seen trading in a broad range of 470-525 rupees.
www.rupeedesk.in
BSE Healthcare Index is currently trading sideways to positive and it would continue the trend next week as well. Talking about stock specific movements, Cipla is set to see some downside in the weeks to come due to a one-off gain in Apr-Jun.
The nearly 450 basis points improvement in the company's operating margin was a result of lower proportion of antiretroviral drugs and higher contribution from anti-depressant segment drugs like escitalopram, or Lexapro, coupled with higher realisations because of improvement in utilisation of the company's Indore unit.
Shares of GlaxoSmithKline Pharmaceuticals may see some downside next week as the company has stopped operations at its Thane factory, with all employees having opted for the voluntary retirement scheme offered by the company.
Shares of Ranbaxy Laboratories are seen gaining next week due to the launch of an anti-diabetic generic pioglitazone hydrochloride tablets in the US market. Shares of Ranbaxy are seen trading in a broad range of 470-525 rupees.
www.rupeedesk.in
Capital Goods Stocks Outlook for the week (21-24.08.2012)
Stocks of capital goods and engineering companies are likely to track the market next week, which seen moving in a tight range. With the earnings season over and not much of action happening, these counters are expected to move in tandem with the broad market. Traders see the National Stock Exchange's 50-scrip Nifty in the band of 5300-5450 next week, with low volumes due to subdued foreign investor participation.
Market participants said contraction of the capital goods sector as reflected in the latest industrial production data will continue to be an overhang on these stocks. India's industrial output contracted for the third time in four months in June, shrinking 1.8% in the month.
Traders see no near-term respite from the Reserve Bank of India through softening of interest rates, which will keep the pressure on capital goods and engineering companies. While fresh order flows have trickled down from most of the sectors, there has been active tendering for electrical equipment, especially reactors and transmission lines.
In the reactor segment, however, there is stiff competition from the Chinese players that poses risk to pricing and margins. Siemens India and Crompton have not won any orders in this segment from Power Grid in last four months.
We continue to prefer exposure to the transmission sector, as demand from both domestic and international markets is likely to remain robust. However, foreign competition continues unabated in the substation/equipment segment, posing continued risk to pricing and margins.
www.rupeedesk.in
Market participants said contraction of the capital goods sector as reflected in the latest industrial production data will continue to be an overhang on these stocks. India's industrial output contracted for the third time in four months in June, shrinking 1.8% in the month.
Traders see no near-term respite from the Reserve Bank of India through softening of interest rates, which will keep the pressure on capital goods and engineering companies. While fresh order flows have trickled down from most of the sectors, there has been active tendering for electrical equipment, especially reactors and transmission lines.
In the reactor segment, however, there is stiff competition from the Chinese players that poses risk to pricing and margins. Siemens India and Crompton have not won any orders in this segment from Power Grid in last four months.
We continue to prefer exposure to the transmission sector, as demand from both domestic and international markets is likely to remain robust. However, foreign competition continues unabated in the substation/equipment segment, posing continued risk to pricing and margins.
www.rupeedesk.in
Oil Stocks Outlook for the week (21-24.08.2012)
Stocks of the state-owned oil marketing companies--Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd, and Hindustan Petroleum Corp Ltd--are seen weak in the near term, in the absence of any major positive triggers amid rising crude prices and continued weakness in the rupee. The price of the Indian basket of crude oil has risen to nearly $113 a barrel, from around $100 less than a month ago. Last Friday, the country's crude basket cost $110 per barrel.
The rupee also has remained stubborn over 55 for a dollar, pushing up costs for oil refiners who import over 75% of their requirement. Also, the government has refrained from any increase in the price of sensitive fuels like diesel, kerosene and cooking gas--all of which are highly subsidised and causes heavy losses to the retailers.
Indian Oil Corp is seen relatively better placed among its peers and may witness some consolidation at current levels. Shares of Reliance Industries, which has already risen significantly over the last two weeks, may see further upside after the company negotiated a settlement with the government on development plans for KG-D6.
The government last week approved the company's investment plan for several fields in KG-D6 basin, after the company agreed to give the Comptroller and Auditor General of India access to KG-D6 accounts.
We believe RIL's share price is discounting nearer-term concerns, and the short term outlook justifies upside potential of 17%, current share price is giving little credit to management for refocusing investment in core activities and its potential impact on cash returns. Stock is on a strong footing on technical charts too.
www.rupeedesk.in
The rupee also has remained stubborn over 55 for a dollar, pushing up costs for oil refiners who import over 75% of their requirement. Also, the government has refrained from any increase in the price of sensitive fuels like diesel, kerosene and cooking gas--all of which are highly subsidised and causes heavy losses to the retailers.
Indian Oil Corp is seen relatively better placed among its peers and may witness some consolidation at current levels. Shares of Reliance Industries, which has already risen significantly over the last two weeks, may see further upside after the company negotiated a settlement with the government on development plans for KG-D6.
The government last week approved the company's investment plan for several fields in KG-D6 basin, after the company agreed to give the Comptroller and Auditor General of India access to KG-D6 accounts.
We believe RIL's share price is discounting nearer-term concerns, and the short term outlook justifies upside potential of 17%, current share price is giving little credit to management for refocusing investment in core activities and its potential impact on cash returns. Stock is on a strong footing on technical charts too.
www.rupeedesk.in
Auto Stocks Outlook for the week (21-24.08.2012)
Stocks of automobile companies are expected to follow the broad market in the coming week with a positive bias. A late pick up and better geographical distribution in monsoon rains are seen aiding the stock as it is likely to boost tractor sales.
Monsoon rains that were around 19% below normal in July have improved this month narrowing the season deficit to 16% as of today. We are also upbeat on Maruti Suzuki India Ltd and that the company is expected to start ramping up its production to earlier levels within three to four weeks. On Thursday, the company said it would restart partial production at its trouble-prone Manesar factory in Haryana on Aug 21.
Tata Motors shares are expected to be in the positive territory in the next 10-15 days. The company reported a 21% jump in July global sales aided by subsidiary Jaguar Land Rover's continued strong performance.
Bajaj Auto and Hero MotoCorp shares are seen moving in a narrow range next week.
www.rupeedesk.in
Monsoon rains that were around 19% below normal in July have improved this month narrowing the season deficit to 16% as of today. We are also upbeat on Maruti Suzuki India Ltd and that the company is expected to start ramping up its production to earlier levels within three to four weeks. On Thursday, the company said it would restart partial production at its trouble-prone Manesar factory in Haryana on Aug 21.
Tata Motors shares are expected to be in the positive territory in the next 10-15 days. The company reported a 21% jump in July global sales aided by subsidiary Jaguar Land Rover's continued strong performance.
Bajaj Auto and Hero MotoCorp shares are seen moving in a narrow range next week.
www.rupeedesk.in
Bank Stocks Outlook for the week (21-24.08.2012)
Stocks of finance companies and banks are expected to move in line with the trend in the market next week. We recommend investors buy shares of private banks. They suggest investors exit stocks of public sector banks at every rise because the asset quality of state-owned banks is deteriorating.
Shares of public sector banks have under-performed those of private banks by 20-25% over the past six months.
We reiterate our cautious stance given concerns of slower economic growth, loan growth, and higher NPLs (non-performing loans). We retain our preference for private banks over PSUs (public sector undertakings) on higher growth, profitability, and relatively better asset quality.
Shares of public sector banks are under pressure also because of their falling rate of return on equity, and their inability to tap the capital market freely due to government holding.
Since PSU banks are not generating enough internal capital and are also constrained in their ability to tap the capital market freely, their Tier-I capital ratios remain low, despite the recent capital infusion by the government. This is a matter of concern since it leaves them with little capital to cover future losses and would also constrain their growth. BRICS Securities has recommended investors buy shares of Axis Bank, ICICI Bank, HDFC Bank, and Bank of Baroda.
www.rupeedesk.in
Shares of public sector banks have under-performed those of private banks by 20-25% over the past six months.
We reiterate our cautious stance given concerns of slower economic growth, loan growth, and higher NPLs (non-performing loans). We retain our preference for private banks over PSUs (public sector undertakings) on higher growth, profitability, and relatively better asset quality.
Shares of public sector banks are under pressure also because of their falling rate of return on equity, and their inability to tap the capital market freely due to government holding.
Since PSU banks are not generating enough internal capital and are also constrained in their ability to tap the capital market freely, their Tier-I capital ratios remain low, despite the recent capital infusion by the government. This is a matter of concern since it leaves them with little capital to cover future losses and would also constrain their growth. BRICS Securities has recommended investors buy shares of Axis Bank, ICICI Bank, HDFC Bank, and Bank of Baroda.
www.rupeedesk.in
Telecom Stocks Outlook for the week (21-24.08.2012)
High cost of spectrum and unfavourable regulatory environment is seen limiting any significant upside in telecom stocks next week and in the medium-term. The Union Cabinet-approved base price for the upcoming auction of 2G spectrum is expected to further strain telecom companies' balance sheets, which is already highly leveraged.
The Cabinet has set 28 bln rupees as the base price for auction of 1,800 MHz GSM bandwidth, while the base price for 800 MHz CDMA has been set at 1.3
times to that of 1,800 MHz band.
The auction may receive a subdued response as most players are highly leveraged and are finding it difficult to service their existing debt. The Supreme Court, which has mandated that the 2G auctions be completed by Aug 31, has been approached by the government to extend to deadline to Nov 12 on the ground that adequate time needs to be given to conduct the auction in a fair and transparent manner.
The government has selected Times Internet Ltd as the auctioneer to conduct the spectrum sale.
www.rupeedesk.in
The Cabinet has set 28 bln rupees as the base price for auction of 1,800 MHz GSM bandwidth, while the base price for 800 MHz CDMA has been set at 1.3
times to that of 1,800 MHz band.
The auction may receive a subdued response as most players are highly leveraged and are finding it difficult to service their existing debt. The Supreme Court, which has mandated that the 2G auctions be completed by Aug 31, has been approached by the government to extend to deadline to Nov 12 on the ground that adequate time needs to be given to conduct the auction in a fair and transparent manner.
The government has selected Times Internet Ltd as the auctioneer to conduct the spectrum sale.
www.rupeedesk.in
IT Stocks Outlook for the week (21-24.08.2012)
Stocks of domestic information technology majors are expected to move in a narrow range next week as the rupee is steady against the US dollar. Today, stocks of most companies in the sector ended higher from last Friday because of positive cues from Asian markets and stability in global markets.
Most information technology majors have already announced their Apr-Jun earnings. Overall, the outlook on the sector is positive but incremental gains in their stocks are not seen too high.
Although demand in the sector has slowed, companies focusing on gaining market share are expected to put up a good performance going forward, Most of bullish on Tata Consultancy Services and HCL Technologies stocks due to greater momentum in the companies' business, their high visibility in the international markets, and improvement in revenue and earnings growth in Apr-Jun.
Stocks of HCL Technologies, which has a 'low margin' strategy, and Tata Consultancy, which has tightly run operations, are the preferred picks in the information technology basket. Due to Infosys's low cost efficiency, the company's performance may suffer going forward.
Infosys's continued underperformance resulted in its PER (price-to-equity ratio) premium shrinking relative to peers such as HCL Technologies; and though the company is quoting at historic low valuations (excluding a brief period post the credit crisis in CY08), we do not expect the stock to get re-rated in the short term.
Major technology companies' volume growth improved sequentially in Apr-Jun. "Though delays in client decisions continued to be a concern, TCS and HCL (Technologies) reported a volume growth of 5.3% and 4.6% , respectively.
Infosys's volumes grew 2.7% in Apr-Jun after declining 1.5% in Jan-Mar. "However, Wipro continued to under-perform its peers and reported a volume growth of 0.8% in 1QFY13--the third successive quarter of below peer volume growth. (The) Company's volume growth has also been the lowest among peers in nine of the past 14 quarters.
www.rupeedesk.in
Most information technology majors have already announced their Apr-Jun earnings. Overall, the outlook on the sector is positive but incremental gains in their stocks are not seen too high.
Although demand in the sector has slowed, companies focusing on gaining market share are expected to put up a good performance going forward, Most of bullish on Tata Consultancy Services and HCL Technologies stocks due to greater momentum in the companies' business, their high visibility in the international markets, and improvement in revenue and earnings growth in Apr-Jun.
Stocks of HCL Technologies, which has a 'low margin' strategy, and Tata Consultancy, which has tightly run operations, are the preferred picks in the information technology basket. Due to Infosys's low cost efficiency, the company's performance may suffer going forward.
Infosys's continued underperformance resulted in its PER (price-to-equity ratio) premium shrinking relative to peers such as HCL Technologies; and though the company is quoting at historic low valuations (excluding a brief period post the credit crisis in CY08), we do not expect the stock to get re-rated in the short term.
Major technology companies' volume growth improved sequentially in Apr-Jun. "Though delays in client decisions continued to be a concern, TCS and HCL (Technologies) reported a volume growth of 5.3% and 4.6% , respectively.
Infosys's volumes grew 2.7% in Apr-Jun after declining 1.5% in Jan-Mar. "However, Wipro continued to under-perform its peers and reported a volume growth of 0.8% in 1QFY13--the third successive quarter of below peer volume growth. (The) Company's volume growth has also been the lowest among peers in nine of the past 14 quarters.
www.rupeedesk.in
FMCG Stocks Outlook for the week (21-24.08.2012)
Stocks of major fast-moving consumer goods companies, which are seen remaining steady in the week ahead, are expected to outperform the broader market. According to some stocks FMCG sector have gained much value over the past few weeks and so the gains are expected to be limited going forward. Over the past week, shares of Hindustan Unilever Ltd gained 1.1% on sustained buying. However, shares of ITC Ltd, the stock with the maximum weightage on the BSE FMCG index, lost 2.1% in value.
The much-fancied Hindustan Unilever stock could see some selling by foreign funds benchmarked to the MSCI Emerging Markets Index. While the weightage for India in the index has been raised marginally to 6.4% from 6.3%, on Wednesday, the weights for Hindustan Unilever have been reduced by 10 basis points. This could lead to $10 mln worth of Hindustan Unilever stocks being sold in the near future.
Four multinational tobacco companies have lost a landmark case to the Australian Government over plain packaging laws of tobacco. The Supreme Court decision means that starting Dec 1, cigarette and tobacco products must be sold in plain olive green packets, without any logo, and with graphic health warnings, in Australia.
ITC's stocks fell near 4% Thursday after it was reported that new anti-tobacco measures to be adopted by Australia could be a model for India also. Although it is difficult to say if and when this will be introduced in India, we see this as a new regulatory headache for Cigarette companies. This could impact recruitment of new consumers as cig (cigarette) smoking might just become even more unglamorous as packs will lack branding or exciting packaging besides displaying highly prominent antismoking images. We believe that the impact on cig will be low as smoking in India happens predominantly through loose buying (around 70% of sales) rather than packs.
www.rupeedesk.in
The much-fancied Hindustan Unilever stock could see some selling by foreign funds benchmarked to the MSCI Emerging Markets Index. While the weightage for India in the index has been raised marginally to 6.4% from 6.3%, on Wednesday, the weights for Hindustan Unilever have been reduced by 10 basis points. This could lead to $10 mln worth of Hindustan Unilever stocks being sold in the near future.
Four multinational tobacco companies have lost a landmark case to the Australian Government over plain packaging laws of tobacco. The Supreme Court decision means that starting Dec 1, cigarette and tobacco products must be sold in plain olive green packets, without any logo, and with graphic health warnings, in Australia.
ITC's stocks fell near 4% Thursday after it was reported that new anti-tobacco measures to be adopted by Australia could be a model for India also. Although it is difficult to say if and when this will be introduced in India, we see this as a new regulatory headache for Cigarette companies. This could impact recruitment of new consumers as cig (cigarette) smoking might just become even more unglamorous as packs will lack branding or exciting packaging besides displaying highly prominent antismoking images. We believe that the impact on cig will be low as smoking in India happens predominantly through loose buying (around 70% of sales) rather than packs.
www.rupeedesk.in
Indian Markets Outlook for the week (13-17.08.2012)
Indices are seen in a narrow band next week, with quarterly earnings of companies likely to drive individual stocks. Investors will also eye inflation data for July, data for which will be released on Tuesday. Bank of America Merrill Lynch sees India's inflation rate, based on the Wholesale Price Index at 7.1% in July against 7.25% in June.
Markets see support for the National Stock Exchange's 50-share Nifty in the 5250-5280 band and resistance in the 5350-5380 range. Yesterday, the Nifty ended at 5320.40, down 2.55 points, and the BSE's 30-stock Sensex closed at 17557.74, down 3.13 points. Stocks of State Bank of India are seen extending losses expect sharp earnings downgrades for the bank following the dismal Apr-Jun earnings reported on yesterday.
Some of the companies scheduled to report earnings over the weekend and early next week are Oil and Natural Gas Corp, Reliance Communications, Reliance Capital, Coal India, Tata Steel, NMDC, ABG Shipyard, Essar Oil, Hindalco Industries, Housing Development & Infrastructure, Mercator, National Aluminium Co, Reliance Infrastructure, and Unitech.
ONGC, which will report earnings on Saturday, is seen posting a 29% year on year rise in net profit at 52.63 bln rupees, aided by high global crude oil prices and a weak rupee. Tata Steel's consolidated net profit in the June quarter is seen declining 88% on year to 6.45 bln rupees, due to subdued Europe operations, high interest cost, and low other income.
(www.rupeedesk.in)
Oil Stocks Outlook for the week (13-17.08.2012)
Stocks of state-owned oil marketing companies--Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd--are seen subdued amid rising crude oil prices and a weak rupee. The market believes that the prospects of the government increasing prices of the sensitive fuels--diesel, kerosene and cooking gas--are very bleak in the near term and the companies may continue to pile up losses.
These three companies reported massive losses for Apr-Jun as the government did not compensate them for the losses incurred on subsidised fuels. Meanwhile, crude prices have started rising with the Indian oil basket touching $109.15 a barrel on Thursday from $104.87 last week. The rupee, however, is stable over $55 per dollar.
We prefer BPCL among OMC's due to its strong E&P potential and upstream companies, ONGC and Oil India, due to their attractive valuations and dividend yields. While the government has been making noises about the inevitability of a hike in diesel prices, fear of opposition from its allies has stymied the move so far. The companies are currently losing over 12 rupees on sale of every litre of the fuel. Oil Minister S. Jaipal Reddy had said earlier this month that a hike was needed but the decision would have to be a "political" one.
Reliance Industries is seen rangebound with a positive bias in the near term after the government approved the company's investment plan for several fields in KG-D6, though with riders. The move came after the company agreed to give the country's top auditor access to KG-D6 accounts. The move is seen as a positive one as it may help company carry out its integrated development plan for the block and increase output in the long run. We believe the outlook for RIL's core business remains weak in near term.
(www.rupeedesk.in)
IT Stocks Outlook for the week (13-17.08.2012)
Stocks of major information technology companies are seen rangebound next week due to lack of sector-specific triggers as earnings of most companies have already been announced. All results are out as such, there is no event next week, so we see a rangebound movement in IT stocks in coming sessions. Our expect are of the view that stocks in the sector will mainly be market driven and also be governed by rupee movement to some extent.
Local indices too are seen in a narrow band next week, with quarterly earnings of companies likely to drive the trend. Investors will also eye inflation data for July, due Tuesday. The rupee is seen depreciating further in the coming sessions due to global economic worries and tracking the euro. The rupee today ended at 55.28 per dollar against Thursday's close of 55.27.
Indian software exporters remain vulnerable to the movement of rupee against the greenback as they get nearly 65% of their revenue from the US. HCL Technologies is expected to attract profit booking, while Infosys is seen moving in a range. Since Tech Mahindra Apr-Jun earnings were announced Thursday, the stock may consolidate over the next few sessions and then move higher. Tech Mahindra reported a 12% sequential rise in Apr-Jun consolidated net profit at 3.38 bln rupees aided by better operating performance.
(www.rupeedesk.in)
Auto Stocks Outlook for the week (13-17.08.2012)
Stocks of automobile companies are seen tracking the broad market in the absence of any major triggers in the week starting Monday. Market participants will take cues from the July headline inflation based on Wholesale price index due for release Tuesday. The National Stock Exchange's 50-stock Nifty is seen finding support at 5250 points, while resistance is seen at 5380 points.
The automobile stocks are expected to remain on the softer side in the short term considering there is a lack of any positive stock-specific or macroeconomic triggers. Demand is likely to pick up post festive season, which starts from October. However, only improved domestic macro factors will ensure whether the demand sustains or not.
Stocks of Hero MotoCorp are seen facing resistance at 2,150 rupees and seen support at 1,790 rupees. Maruti Suzuki stocks will find support at 1075 rupees and resistance at 1,230 rupees. The scrip will also track any news flow regarding developments around the company's Manesar plant, which has been shut following labour unrest late last month. However, positive on Mahindra & Mahindra and pegged resistance for the stock at 770 rupees with support at 700 rupees. If the stock crosses its first resistance level, it could easily touch 820 rupees, Tata Motors stocks are seen finding support at 215 rupees and resistance at 252 rupees.
(www.rupeedesk.in)
Steel Stocks Outlook for the week (13-17.08.2012)
Stocks of steel companies are likely to trade in a narrow range next week tailing the key indices and market will also eye Tata Steel Ltd's Apr-Jun earnings due for release on Monday. Key indices may see a rangebound trade next week due to lack of triggers. Nifty is seen trading in range of 5250-5380.
The steel maker's consolidated net sales for the reporting quarter are seen down 1% on year at 326.57 bln rupees due to flat sales volumes and lower realisation from its European operations. On a sequential basis, the company's consolidated net profit is seen rising 49% due to improved realisation in India as well as in Europe. Overseas operations mainly in Europe are likely to show some improvement on QoQ (quarter-on-quarter) basis due to slightly higher realisations and lower coking coal cost. Moody's Investors Service, this week revised the outlook on Tata Steel's Ba3 credit rating to negative from stable and also cut the rating of its European arm Tata Steel UK Holdings Ltd to B3 from B2. Last week, Steel Authority of India Ltd disappointed the street with its lacklustre earnings.
In a post-earnings report, while SAIL has disappointed time and again with delays in expansion plans, the company now seems progressing well on the expansion projects. The stock has underperformed primarily on account of various delays, and we believe commissioning of these projects would be a key milestone awaited by investors.
(www.rupeedesk.in)
FMCG Stocks Outlook for the week (13-17.08.2012)
Stocks of major fast-moving consumer goods companies are seen remaining steady and rangebound in the week ahead, with a positive bias. FMCG stocks have gained much value over the past few weeks and so the gains will be limited going forward. Major FMCG companies have reported better-than-expected results in Apr-Jun, including on key parameters such as sales volume growth. This has resulted in increased buying of these shares in an otherwise weak market. Over the past week, the BSE FMCG Index has gained 2.8% in value, while the BSE Sensex and NSE Nifty have risen 2% each.
According to a report by Foreign institutional investors have increased ownership of shares of major FMCG companies such as Hindustan Unilever Ltd, Britannia Industries Ltd, and Godrej Consumer Products Ltd in Apr-Jun. Investor interest in FMCG stocks is expected to sustain in the near term, given the global and domestic macroeconomic weakness.
(www.rupeedesk.in)
Pharma Stocks Outlook for the week (13-17.08.2012)
Pharmaceutical stocks are seen outperforming the benchmark indices next week on news of drug approvals from the US Food and Drug Administration and also on anticipation of new approvals. Most pharmaceutical stocks have reported exceptionally well financial results in Apr-Jun, which is likely to help the stocks gain in the next few weeks. Dr Reddy's Laboratories to gain as the company has received the final approval for generic Topropl XL, which has a market value of $1.2 bln. We believe that the product will be a key contributor to Dr. Reddy's US business in the near term.
Ranbaxy Laboratories' in-licensing agreement with Gilead's emtricitabine is seen positive for the stock. Stocks of Sun Pharmaceutical Industries are seen continuing with their gains next week after the company Friday reported better-than-expected quarterly net profit. During the reporting quarter, Sun Pharmaceutical reported a consolidated net profit of 7.96 bln rupees while its consolidated net sales were at 26.58 bln rupees. Sun Pharmaceutical Industries' shares are also seen gaining momentum next week on the company's likely acquisition of UK-based pharmaceutical company Stada.
(www.rupeedesk.in)
Telecom Stocks Outlook for the week (13-17.08.2012)
Current adverse regulatory environment and a disappointing quarterly result from sector bellwether Bharti Airtel are expected to weigh on telecom stocks in the coming sessions. Telecom stocks are expected to under-perform the broad market in the medium term and currently investors have been recommended reducing their exposure to the sector.
Bharti Airtel on Wednesday announced a disappointing set of numbers for the Apr-Jun quarter, with net profit declining 24.2% on quarter to 7.62 bln rupees, as sales were impacted due to higher service tax and regulatory restrictions. In the futures segment, Bharti Airtel has seen significant build-up of short positions. In the coming sessions, the stock is expected to see consolidation between 250-290 rupees.
Delay in the commencement of the 2G spectrum auction process prolongs the uncertainty for the telecom companies, whose balance-sheets are highly stretched on account of high amount of debt raised for acquiring 3G spectrum in 2010.
The government has appealed to the Supreme Court to extend the Aug 31 deadline for conducting the auction to November. Telecom service providers have claimed that the final 2G spectrum reserve price and the Department of Telecommunication's proposal to levy one-time spectrum fee on service providers will add further pressure on their operations.
The Union Cabinet has set the base price for the auction 5 MHz of spectrum in the 1,800 MHz spectrum bandwidth at 140 bln rupees, against 181.1 bln rupees recommended by Telecom Regulatory Authority of India. Service providers have termed the base price as high. The base price is seen negative for incumbents such as Bharti Airtel, whose licences will come up for renewal in 2014-15.
(www.rupeedesk.in)
Cement Stocks Outlook for the week (13-17.08.2012)
Stocks of major cement companies are seen rangebound with a positive bias next week as demand for cement remains better than expected due to a deficient monsoon. Sentiment for the sector also remains positive after most cement manufacturers posted strong numbers for Apr-Jun earlier this month. We believe that the worst is behind for the cement industry.
After the recent outperformance, cement stocks are trading at historical average valuations, leaving limited room for further re-rating. We expect strong earnings growth to drive stock performance, hereon. Ambuja Cements and UltraTech Cement are the top picks in the large-cap and while Shree Cement is its favoured stock in the mid-cap.
Next week, India Cements will be in focus as the company will report its Apr-Jun earnings on Monday. This week, stocks of the company fell 1.6% to 85.60 rupees. Stocks of Shree Cement will be eyed, as the company will announce its Apr-Jun earnings on Thursday. This week, the company's stocks rose 2.4% to 3,181.70 rupees.
(www.rupeedesk.in)
Capital Goods Stocks Outlook for the week (13-17.08.2012)
Capital Goods Stocks Outlook for the week (13-17.08.2012)
Stocks of capital goods and engineering companies are likely to track the market, which is seen moving in a thin band. Apr-Jun earnings will guide stock-specific movement in the market. Siemens will be in focus Monday as the company posted dismal profit and sales numbers for the quarter ended June post market hours yesterday. The stocks are likely to open lower as operating margin slipped 700 basis points dragging the bottomline down 76%. Suzlon Energy is also likely to be in focus as the company will announce its first quarter earnings Monday. The wind turbine maker is seen posting a loss of 1.2 bln rupees due to high interest expenses.
Investors to sell BGR Energy System stocks following the company's Apr-Jun earnings, as the believe there are very few orders in the power equipment segment in which BGR operates. This in turn will put the company's margin under pressure. BGR Energy Systems target price to 306 rupees from 349 rupees as it expects the company to post a flattish performance in 2012-13 (Apr-Mar).
(www.rupeedesk.in)
Indian Markets Outlook for the week (06 - 10.08.2012)
Key stock indices will take cues from overseas markets next week due to a lack of triggers on the domestic front. European markets and US futures rose ahead of the July non-farm payrolls data, which was released post market hours yesterday. Post market hours, the Labor Department said that US non-farm payrolls rose by a seasonally adjusted 163,000 jobs in July. However, this was not enough to bring down the unemployment rate, which ticked up to 8.3% from 8.2% in June. European markets and US futures continued to trade higher after the data was released. Taking cues from European markets during the session, local stock indices ended off 1% lows. Local stock indices ended off 1% lows yesterday, taking cues from the European market.
Looking the options data Nifty is likely to trade in a range of 5000-5300 in the week ahead. This range may be breached on the upside next week as considerable amount of buying has been witnessed in call options. Scepticism still prevails over the sustainability of any gains though. With the growing risk posed by the monsoon, plus the obvious continuing risk of renewed 'risk off' from the eurozone, (CLSA's report titled) GREED & FEAR will shave the small overweight in India by a percentage point this week and add another percentage point to lower beta Malaysia said CLSA Asia-Pacific Markets in a report Thursday. The India Meteorological Department yesterday said that the southwest monsoon this year is slated to the worst in three years at around 85% of the long-period average, with high probability of a drought in northwest India.
In an absence of any policy measures, either overseas or back home, action in the market is likely to remain stock-specific, particularly as several companies are to report their Apr-Jun earnings next week. DLF, Steel Authority of India, Bharti Airtel, Mahindra & Mahindra, Tata Power Co, Cadila Healthcare, Steel Authority of India, MOIL, Punj Lloyd, Bharti Airtel, Ranbaxy Laboratories, Tata Motors, Tech Mahindra, Bharat Petroleum Corp, State Bank of India, Sun Pharmaceutical Industries, GVK Power & Infrastructure, Oil India, and Pantaloon Retail are some of the companies reporting earnings early next week. Lack of new project launches and a sluggish real estate market is likely to pull down industry major DLF Ltd's year-on-year net profit by 27% during Apr-Jun to 2.61 bln rupees. Steel Authority of India Ltd is likely to report an 11% on year rise in its profit after tax at 9.28 bln rupees for the quarter-ended June on better realisations. Both companies detail their results on Monday.
BGR Energy Systems, which reported its result post market close yesterday, may slip as its Apr-Jun net profit of 336.6 mln rupees. Future Capital Holdings stocks may also be in focus as the company yesterday said it will cease to have any exposure to the beleaguered Deccan Chronicle group after the former's promoter group decided to take over 1.7-bln-rupee loans given to the latter at book value.
Looking the options data Nifty is likely to trade in a range of 5000-5300 in the week ahead. This range may be breached on the upside next week as considerable amount of buying has been witnessed in call options. Scepticism still prevails over the sustainability of any gains though. With the growing risk posed by the monsoon, plus the obvious continuing risk of renewed 'risk off' from the eurozone, (CLSA's report titled) GREED & FEAR will shave the small overweight in India by a percentage point this week and add another percentage point to lower beta Malaysia said CLSA Asia-Pacific Markets in a report Thursday. The India Meteorological Department yesterday said that the southwest monsoon this year is slated to the worst in three years at around 85% of the long-period average, with high probability of a drought in northwest India.
In an absence of any policy measures, either overseas or back home, action in the market is likely to remain stock-specific, particularly as several companies are to report their Apr-Jun earnings next week. DLF, Steel Authority of India, Bharti Airtel, Mahindra & Mahindra, Tata Power Co, Cadila Healthcare, Steel Authority of India, MOIL, Punj Lloyd, Bharti Airtel, Ranbaxy Laboratories, Tata Motors, Tech Mahindra, Bharat Petroleum Corp, State Bank of India, Sun Pharmaceutical Industries, GVK Power & Infrastructure, Oil India, and Pantaloon Retail are some of the companies reporting earnings early next week. Lack of new project launches and a sluggish real estate market is likely to pull down industry major DLF Ltd's year-on-year net profit by 27% during Apr-Jun to 2.61 bln rupees. Steel Authority of India Ltd is likely to report an 11% on year rise in its profit after tax at 9.28 bln rupees for the quarter-ended June on better realisations. Both companies detail their results on Monday.
BGR Energy Systems, which reported its result post market close yesterday, may slip as its Apr-Jun net profit of 336.6 mln rupees. Future Capital Holdings stocks may also be in focus as the company yesterday said it will cease to have any exposure to the beleaguered Deccan Chronicle group after the former's promoter group decided to take over 1.7-bln-rupee loans given to the latter at book value.
IT Stocks Outlook for the week (06 - 10.08.2012)
Stocks of major information technology companies are likely to move in a narrow range next week due to lack of any sector-specific triggers. There could be some stock-specific movement in reaction to companies' Apr-Jun earnings and other corporate developments. Stocks of Satyam Computer Services are likely to rise further next week. This week, the stock ended 5% higher as the company Thursday reported better-than-expected earnings for Apr-Jun. Foreign exchange gains, higher utilisation, and cost optimisation boosted the company's net profit in the quarter 56.4% from a year ago to 3.52 bln rupees. Revenue rose 31.1% to 18.80 bln rupees. The earnings of group company Tech Mahindra, which will be released Thursday. Satyam Computer's strong earnings pushed Tech Mahindra stocks up more than 6% this week. Tata Consultancy Services and Infosys stocks have been moving sideways-to-positive. Stocks of Wipro have a different chart pattern compared with those of Infosys and Tata Consultancy.
Capital Goods Stocks Outlook for the week (06 - 10.08.2012)
Stocks of capital goods and engineering companies are likely to track the likely rangebound movement of the broad market next week. Apr-Jun earnings will guide stock-specific movement in the market. Blue-chip stocks, such as Larsen & Toubro Ltd, Bharat Heavy Electricals Ltd, and Siemens, may extend gains and see 2-3% upside in the coming week on value buying. Among the companies detailing their Apr-Jun earnings next week, ABB Ltd is seen posting 63% rise in net profit at 631 mln rupees on a low base and moderate 11% growth in net sales at 18.78 bln rupees. ABB will detail its earnings Wednesday. Siemens Ltd will also detail its quarterly earnings next week on Friday. Stocks of BGR Energy Systems are likely to be in focus in early trade Monday as the company posted lower-than-estimated net sales of 6.1 bln rupees and net profit of 336.6 mln rupees in Apr-Jun.
In mid-cap stocks, Cummins India given its strong, Street estimate-beating Apr-Jun revenue growth of 21.5%. The company's Apr-Jun bottomline expanded 43.6% on year due to robust sales and improved operational performance. Cummins Inc, the global parent of Cummins India, also posted a good set of Apr-Jun numbers. Cummins (Inc) continues to benefit from its geographic diversification and leadership position in a number of end markets.
In mid-cap stocks, Cummins India given its strong, Street estimate-beating Apr-Jun revenue growth of 21.5%. The company's Apr-Jun bottomline expanded 43.6% on year due to robust sales and improved operational performance. Cummins Inc, the global parent of Cummins India, also posted a good set of Apr-Jun numbers. Cummins (Inc) continues to benefit from its geographic diversification and leadership position in a number of end markets.
Auto Stocks Outlook for the week (06 -10.08.2012)
Stocks of automobile companies are seen flat in the coming week as sales numbers indicate softness in demand due to economic slowdown that may be accentuated following a weak monsoon. We believe volume growth is likely to slow down further due to weak monsoons, high inflation and weak consumer sentiment. The southwest monsoon this year is likely to be around 85% of the long period average, making it the worst rainfall since 2009, India Meteorological Department Director General L.S. Rathore said yesterday. The market will also eye Apr-June earnings and management's outlook for stock-specific cues. Mahindra & Mahindra and Tata Motors will announce their Apr-Jun earnings on Aug 8 and Aug 9, respectively.
Tata Motors is seen reporting a 35% on year growth in net profit. Mahindra & Mahindra is likely to post a 1% growth in profit for the June quarter. Both Mahindra & Mahindra and Tata Motors are seen rangebound with a negative bias in the short term. Maruti Suzuki stocks are seen finding support at 1,074 rupees while resistance is pegged at 1,144 rupees. The market is awaiting clarity on when operations at the company's Manesar plant are going to be resumed. Yesterday, the company said that it has still not decided on resuming work at the plant. Tata Motors' stocks are seen finding support at 203 rupees with resistance at 230 rupees. The trend for the stock is seen to be negative.
Tata Motors is seen reporting a 35% on year growth in net profit. Mahindra & Mahindra is likely to post a 1% growth in profit for the June quarter. Both Mahindra & Mahindra and Tata Motors are seen rangebound with a negative bias in the short term. Maruti Suzuki stocks are seen finding support at 1,074 rupees while resistance is pegged at 1,144 rupees. The market is awaiting clarity on when operations at the company's Manesar plant are going to be resumed. Yesterday, the company said that it has still not decided on resuming work at the plant. Tata Motors' stocks are seen finding support at 203 rupees with resistance at 230 rupees. The trend for the stock is seen to be negative.
Pharma Stocks Outlook for the week (06 - 10.08.2012)
Apr-Jun earnings are seen influencing action in pharmaceutical stocks next week as many companies are set to detail their quarterly numbers in the coming week. Bullish on Divi's Laboratories and Cadila Healthcare that are reporting their Apr-Jun results on Saturday and Monday, respectively. Investors would also be looking at Aurobindo Pharma's earnings that will be detailed Tuesday. Stocks of Ranbaxy Laboratories are likely to gain next week on talks the company is set to launch a diabetes-treating drug Actos in the US market by mid-August. The company, in 2010, had resolved a patent litigation with Japan-based company Takeda Pharmaceutical Co whereby the latter had granted a non-exclusive royalty free licence to its US patents covering Actos to Ranbaxy. Sun Pharmaceutical Industries' stocks are also seen gaining momentum next week on the company's likely acquisition of UK-based pharmaceutical company Stada.
However, given the economic crisis in the eurozone region, it would be hard to turn the company around, which should be negative for Sun Pharmaceutical in the long run. So far, pharmaceutical companies have reported exceptionally well numbers in Apr-Jun with around 20% growth in domestic businesses and over 40% growth in the US businesses. Therefore, pharmaceutical stocks are seen outperforming the benchmark indices by around 10% over the next one month. However, stocks of Glenmark Pharmaceuticals may fall next week as the company's consolidated net profit for Apr-Jun fell sharply to 782.75 mln rupees from 2.08 bln rupees last year. This figure is lower than the 1-bln-rupee net profit the Street had expected, as the company suffered a marked-to-market loss of 550 mln rupees.
However, given the economic crisis in the eurozone region, it would be hard to turn the company around, which should be negative for Sun Pharmaceutical in the long run. So far, pharmaceutical companies have reported exceptionally well numbers in Apr-Jun with around 20% growth in domestic businesses and over 40% growth in the US businesses. Therefore, pharmaceutical stocks are seen outperforming the benchmark indices by around 10% over the next one month. However, stocks of Glenmark Pharmaceuticals may fall next week as the company's consolidated net profit for Apr-Jun fell sharply to 782.75 mln rupees from 2.08 bln rupees last year. This figure is lower than the 1-bln-rupee net profit the Street had expected, as the company suffered a marked-to-market loss of 550 mln rupees.
Cement Stocks Outlook for the week (06 - 10.08.2012)
Stocks of major cement companies are likely to track the market trend next week due to lack of any sector-specific triggers. There may be profit booking in some cement stocks as these have rallied aggressively over the past few weeks on robust Apr-Jun earnings. Stocks have also moved up as companies continued to see higher-than-expected sales through July due to weak monsoon. Typically, cement sales start falling from June as construction activity across the country slows due to rains. On Thursday, Ambuja Cements said its July cement despatches rose nearly 6% on year to 1.7 mln tn and its production increased 1.1% to 1.7 mln tn. However, profit booking in the stocks is likely to be limited as cement stocks are seen strong performers in the near-term.
Costs for cement makers have stabilised, sales have remained stable-to-marginally lower despite the seasonality, so things are pretty good for cement makers. There will be profit booking in the short-term, but in the medium-to-long term cement counters are a safe bet. After a decline in prices in Apr-May, prices recovered again in Jun-Jul mainly due to supply shortage. This coupled with delayed monsoon has given producers extra window to push up prices. This recent hike will undoubtedly become a cushion for the seasonal fall in cement prices with the pick up in monsoon and is likely to positively surprise the street on the realisation front. The market doesn't seem to succumb to the pressure of the recent penalties levied by the Competition Commission of India. Stocks of Shree Cement rose nearly 2% this week, despite the CCI levying a penalty of 3.97 bln rupees on the company charges of cartelisation.
Costs for cement makers have stabilised, sales have remained stable-to-marginally lower despite the seasonality, so things are pretty good for cement makers. There will be profit booking in the short-term, but in the medium-to-long term cement counters are a safe bet. After a decline in prices in Apr-May, prices recovered again in Jun-Jul mainly due to supply shortage. This coupled with delayed monsoon has given producers extra window to push up prices. This recent hike will undoubtedly become a cushion for the seasonal fall in cement prices with the pick up in monsoon and is likely to positively surprise the street on the realisation front. The market doesn't seem to succumb to the pressure of the recent penalties levied by the Competition Commission of India. Stocks of Shree Cement rose nearly 2% this week, despite the CCI levying a penalty of 3.97 bln rupees on the company charges of cartelisation.
Steel Stocks Outlook for the week (06 - 10.08.2012)
Stocks of steel companies are seen trading sideways to down on subdued demand, and are likely to take cues from Steel Authority of India Ltd's Apr-Jun earnings to be announced Monday. The state-owned steel producer's net profit is seen growing 11% on year to 9.28 bln rupees on better realisations. The company's net sales are seen rising 2% on year to 110.2 bln rupees. EBITDA (earnings before interest, tax, depreciation, and amortisation) is expected to increase by 21% on year on the back of decrease in raw material costs. We expect EBITDA margin of 14%, up by 200 bps on year. This week, Bhushan Steel Ltd reported a 2% on-year fall in Apr-Jun net profit at 2.06 bln rupees mainly due to high interest payments on loans.
Over the company's 200-bln-rupee debt, its high interest and depreciation costs, which are erasing a good chunk of its profit margins. Bhushan Steel's net sales rose about 27% to 28.41 bln rupees in Apr-Jun against 22.31 bln rupees a year ago. Steel companies have been struggling with low demand due to overall slowdown in domestic economic activity. Monsoon is a seasonally weak period for steel makers as construction activities decelerate during this time. Over slowing steel demand across the country. In absence of any meaningful demand pickup as well (as) continued margin loss over last two years. Build any further stock of steel due to increasing inventory in the system, and lack of project demand visibility. Delay in government project announcements is a key reason for lack of demand visibility.
While hope of project capex revival lingers by October, clearly we are moving through a tricky inventory de-stocking cycle, which can lead to erratic price movements. The prices of both long and flat products in eastern parts of India have dropped by 2,000 rupees per tn over the last three months. In Mumbai, hot rolled and cold rolled steel prices have dropped by 1,000 rupees and 200-500 rupees per tn respectively, over the last 15 days. Shutdown of Maruti Suzuki Ltd's Manesar facility has also affected the demand for flat steel products.
Over the company's 200-bln-rupee debt, its high interest and depreciation costs, which are erasing a good chunk of its profit margins. Bhushan Steel's net sales rose about 27% to 28.41 bln rupees in Apr-Jun against 22.31 bln rupees a year ago. Steel companies have been struggling with low demand due to overall slowdown in domestic economic activity. Monsoon is a seasonally weak period for steel makers as construction activities decelerate during this time. Over slowing steel demand across the country. In absence of any meaningful demand pickup as well (as) continued margin loss over last two years. Build any further stock of steel due to increasing inventory in the system, and lack of project demand visibility. Delay in government project announcements is a key reason for lack of demand visibility.
While hope of project capex revival lingers by October, clearly we are moving through a tricky inventory de-stocking cycle, which can lead to erratic price movements. The prices of both long and flat products in eastern parts of India have dropped by 2,000 rupees per tn over the last three months. In Mumbai, hot rolled and cold rolled steel prices have dropped by 1,000 rupees and 200-500 rupees per tn respectively, over the last 15 days. Shutdown of Maruti Suzuki Ltd's Manesar facility has also affected the demand for flat steel products.
FMCG Stocks Outlook for the week (06 - 10.08.2012)
Stocks of major fast-moving consumer goods companies are expected to gain further in the week ahead as investors increase exposure to the category given good Apr-Jun earnings of leading companies in the sector. Yesterday, Marico Ltd reported its Apr-Jun earnings. The company reported a 46% year-on-year rise in its Apr-Jun consolidated net profit to 1.24 bln rupees thanks to a strong 16% sales volume growth in its domestic consumer products business. The company's consolidated net sales also bettered the Street view, rising 22% on year to 12.67 bln rupees.A key factor that helped Marico was the fact that the company did not hike product prices in Apr-Jun, so that it could maintain sales volume growth. Earlier, companies such as Hindustan Unilever Ltd, Colgate Palmolive Ltd, and ITC Ltd have also reported better-than-expected Apr-Jun earnings, bringing traction to stocks in the sector. Despite the better-than-estimated Apr-Jun performance, Marico's stocks yesterday ended down nearly 3% as the management expressed doubts on the company's ability to maintain its margins in the subsequent quarters. Maintaining sales volume growth and operating margin growth are seen as the two big challenges for FMCG companies in the subsequent quarters as the economy slows and disposable incomes of consumers contract.
Oil Stocks Outlook for the week (06 - 10.08.2012)
Stocks of the three state-owned oil marketing companies that are declaring their Apr-Jun earnings next week are likely to take cues from the broader market, as well as crude oil prices and rupee-dollar movement in the next five sessions. There are no major triggers for the stocks of the three companies Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd in the near term as a hike in diesel price has almost been ruled out anytime soon. Quarterly results of these companies did not reflect much on their performance and mostly depend on the timing of compensation provided by the government for revenue losses incurred on subsidised sale of fuels. All these companies are expected to report heavy losses for Apr-Jun as the government is yet to compensate them for the under-recoveries on retail sales of kerosene, diesel and cooking gas.
In the quarter ended June, the three companies' under-recoveries on these fuels are expected to be 478 bln rupees. Bharat Petroleum will details its Apr-Jun numbers on Aug 10 and is expected to report net loss of 38.90 bln rupees. Indian Oil and Hindustan Petroleum, which will report their numbers on Thursday, are seen reporting Apr-Jun net loss of 79.45 bln rupees and 38.60 bln rupees, respectively. Crude prices have remained relatively stable at around $103 a barrel for the last few days and rupee, too, has stabilised at around 55 for a dollar. If the rupee strengthens it will benefit the three companies and stocks may react positively. In case of crude oil, only a big movement is likely to affect the stocks. Reliance Industries is likely to continue tracking the broad market but bias remains negative next week, after the stock ended the current week with gains. Unless the market rallies next week Reliance Industries stocks may shed 10-20 rupees from current levels. If the broad market weakens, the counter may decline further.
In the quarter ended June, the three companies' under-recoveries on these fuels are expected to be 478 bln rupees. Bharat Petroleum will details its Apr-Jun numbers on Aug 10 and is expected to report net loss of 38.90 bln rupees. Indian Oil and Hindustan Petroleum, which will report their numbers on Thursday, are seen reporting Apr-Jun net loss of 79.45 bln rupees and 38.60 bln rupees, respectively. Crude prices have remained relatively stable at around $103 a barrel for the last few days and rupee, too, has stabilised at around 55 for a dollar. If the rupee strengthens it will benefit the three companies and stocks may react positively. In case of crude oil, only a big movement is likely to affect the stocks. Reliance Industries is likely to continue tracking the broad market but bias remains negative next week, after the stock ended the current week with gains. Unless the market rallies next week Reliance Industries stocks may shed 10-20 rupees from current levels. If the broad market weakens, the counter may decline further.
Live Mcx Commodity and NCDEX Commodity Tips: Free Mcx Commodity Jobbing Calls For Brokers and S...
Live Mcx Commodity and NCDEX Commodity Tips: Free Mcx Commodity Jobbing Calls For Brokers and S...: 10.25Am : Buy Gold SA 30020 SL 29980 T 30060/30080 (Achieved) 10.40Am : Buy Copper Sa 416.55 SL 416.05 T 417/417.60 (Achieved) 10.40Am : ...
Live Mcx Commodity and NCDEX Commodity Tips: Free Commodity Jobbing Tips for brokers and subbro...
Live Mcx Commodity and NCDEX Commodity Tips: Free Commodity Jobbing Tips for brokers and subbro...: 12.00 Pm : Short Lead Sb 106.45 SL 106.65 T 106.30/106 (Achieved) 01.00 Pm : Short Silver Sb 53830 SL 53850 T 53760/53368 (Achieved) 02....
Subscribe to:
Posts (Atom)