Opportunities to get in and get out!
Never read a book through merely because you have begun it.
Just because you've got into a stock doesn't mean you have to stick to it. The coming days will give you ample opportunities to get into counters and exit counters as the markets are expected to witness bouts of buying and selling in select counters. A crash on Friday followed by a volatile and mixed day on Monday. Then came the two holidays. Thankfully nothing untoward has happened in the international markets in the interim. Locally too, there's hardly anything to bother about except for the last few results that are still trickling in. Going by the global cues, we may open higher. But, considering that we will head into the weekend after two days of trading, the market may remain rangebound and choppy. FIIs have also turned net sellers in the last couple of days. We expect more stock specific action amid lower volume given the fact that there are hardly any triggers in the immediate future. Inflation will of course continue to hog the limelight and as will the rupee. There is a newspaper report that says that volatility is all set to rise this year and it may not be such a smooth ride for the bulls after a four-year rally. So, it pays to be a little cautious after a big rally as most positive factors are in the stock prices. But then for the day, no major worries in sight.
FIIs were net sellers of Rs4.4bn (provisional) in the cash segment on Monday while the local institutions put in Rs2bn on the same day. In the F&O segment, FIIs offloaded stocks worth Rs8.35bn on Monday. Foreign funds were net sellers to the tune of Rs1.95bn on April 27.
In global fund flows, money returned to US Equity Funds during the fourth week of April as the benchmark Dow Jones posted a series of new record highs on the back of a better than expected first quarter earnings season, according to EPFR Global Fund Data Monitor. But uncertainty about China’s response to higher than expected economic growth may have dampened flows into emerging markets funds. And, after three weeks of solid gains, investors pulled significant amounts of money out of Western European Equity Funds.
Wockhardt could be in action amid reports that it will acquire French pharma company Negma Lerads SAS. Moser Baer has recommended 1:2 bonus share issue and plans to raise as much as $150mn for expansion.
Saregama India is to announce its results today. Market grapevine has it that the RPG Group media major is expected to report bumper profit. Nearly 10% equity of Reliance Petroleum held by institutions like LIC, SBI and Goldman Sachs will come out of the lock-in period.
Hero Honda's April sales rose 4.86% to 262,544 units. Bajaj Auto's sales last month declined 10%. TVS Motor could be under pressure as it has reported a 16% drop in sales in April because demand for motorcycles declined. Tata Motors has posted a 10.7% rise in its April sales.
Suzlon Energy may attract some attention as one of its units has won a 400 MW wind turbine contract from US-based PPM Energy.
The Dow Jones Industrial Average hit another record high on Wednesday, clocking its longest winning streak in almost 52 years as investors welcomed strong earnings, lower oil prices, media deals and a strong reading on manufacturing.
The Standard & Poor's 500 Index climbed to a six-year high, propelled by MasterCard and Time Warner earnings that topped analysts' forecasts. The S&P 500 added 9.62 points, or 0.7%, to 1495.92, the highest since September 2000.
The Dow gained 75.74 points, or 0.6%, to a record 13,211.88 as a stronger-than-expected factory orders report lifted Honeywell International Inc. shares. The average recorded its 18th record close this year. The Nasdaq Composite climbed 26.31 points, or 1%, to 2557.84, the highest since February 2001.
Treasury prices slipped, lifting the yield on the 10-year note to about 4.64% from around 4.63% late on Tuesday. COMEX gold for June delivery fell $2.20 to settle at $675.10 an ounce. In currency trading, the dollar eased against the euro and gained versus the yen.
US light crude oil for June delivery fell 72 cents to settle at $63.68 a barrel on the New York Mercantile Exchange, after the government said that supplies of gasoline fell and crude oil inventories climbed. The front-month contract was quoting 6 cents higher at $63.74 a barrel in extended trading in Asia.
European shares rose on Wednesday, led by media stocks after BSkyB reported surprisingly strong customer addition and News Corp offered to buy Dow Jones for $5bn. The pan-European Dow Jones Stoxx 600 index rose 0.4% to 388.52. The UK's FTSE 100 closed up 1% at 6,484.50, the German DAX Xetra 30 rose 0.6% to 7,455.93 and the French CAC-40 climbed 0.5% to 5,990.13.
In Asian markets, the Hang Seng in Hong Kong surged by 226 points to 20,614 while the Kospi in Seoul added 5 points to 1558 and the Straits Times in Singapore climbed 31 points to 3449. Markets in Japan and China are shut for public holidays.
In the emerging markets, the Bovespa in Brazil gained 1% to 49,471 while the IPC index in Mexico rose 0.9% to 29,259 and the RTS index in Russia slumped 1.2% to 1911.
Market may remain dull and choppy
Key Indices closed flat recouping most of the early morning’s fall as buying in late afternoon trades in lifted the markets higher from day’s low. Impressive numbers by R Com and value buying I Tech stocks led the recovery as BSE 30-share Sensex settled at 13872, down by 36 points after touching an intra-day low of 13693.59 and a peak of 13901.12. Though, the Indian Bulls managed to fight back from day’s low, picture was grim in other major Asian Indices. Asian stocks fell to a one-week low amid concern about economic growth in the US and China. Hang Seng Index lost over 200 points to close at 20319.
Infosys, TCS, R Com and Tisco were the major gainers lifting the markets higher from days low. IT, Metal, Auto and capital Good stocks were among the major gainers. While Banking and FMCG stocks closed lower on account of profit booking.
Among the major results announced today, R Com advanced by over 3.5% to close at Rs477 after company’s Q4 profit doubled to Rs10.24bn. However, HLL closed lower by 5% to Rs199 after company’s net income fell by 13% to Rs3.93bn.
Tech stocks held the markets from a major fall after Rupee declined by the most in more than a month today. Satyam Comp is up by over 1% to Rs473, Wipro has gained by 1% to Rs572 and Infosys advanced by 2.28% to Rs2051.
Selling pressure was seen in banking stocks led by ICICI Bank. The scrip lost over 7% to Rs866 on plan for plan for India's biggest stock sale. SBI closed flat at Rs1102, Can Bank lost 2% to Rs217 and Bank of Baroda was down by 3% to Rs236.
Insider Trades:
Praj Industries Ltd: Berjis Desai, Non-Executive and Independent Director on 23rd April 2007 sold 100000 equity shares and Sivaramakrishnan Iyer, Non-Executive and Independent Director on 25th April 2007 sold 50000 equity shares of Praj Industries.
Indiabulls Real Estate Limited: Goldman Sachs Investments (Mauritius) I Limited on 23rd April 2007 from market purchased 715000 equity shares of Indiabulls Real Estate.
Market Volumes:
The turnover on NSE was down by 7.9% to Rs75.71bn. BSE IT index was the major gainer and gained 2.01%. BSE Auto index (up 1.10%), BSE Mid Cap index (up 1.08%) and BSE Capital Good index (up 0.57%) were among the other major gainers. However, BSE Bank index lost 2.88%.
Volume Toppers:
IFCI, TTML, SAIL, HLL, IDFC, Idea, RNRL, ICICI Bank, Bharti Airtel, Cipla, Vijaya Bank, Tata Steel, ITC, HFCL, IBREAL, RPL, IVRCL Infra, Hindalco, Arvind Mills, FSL and UCO Bank.
Upper Circuit:
DCHL, Pratibha Industries, Silverline Tech, Sona Koyo, HOV Services, Genus Overseas and Maxwell Industries.
Results Today:
Century Textiles, Colgate, Coromandel Fertilizers, DCB, Eicher Motors, GTL Infra, HDFC, IFCI, Info Edge India, Orchid Chem, Sterlite and United Phosphorous.
Delivery Delight:
Alstom Projects India, Bharat Forge, Castrol India, Century Textiles, Colgate, Reliance Capital, SCI, Tata Power, TVS Motor and UTI Bank.
Abnormal Delivery:
Ranbaxy, BPCL, Bank of Baroda, ONGC, HPCL, SAIL, Arvind Mills, MTNL, Voltas, Balrampur Chini and VSNL.
Stock Futures with Largest Increases in OI:
Bharat Forge, J&K Bank, ICICI Bank, Chennai Petro, HLL, Tata Motors, Polaris, SCI and Kotak Mahindra Bank.
Stock Futures with Largest Decreases in OI:
OBC, TCS, Mphasis BFL, Renuka Sugars, Sesa Goa, NTPC, Alok Industries, Ranbaxy, Gateway Distriparks.
Results Corner:
HLL Q1 sales at Rs31.84bn (up 13.97%), net income falls to Rs3.93bn (down 11.3%)
Reliance Com Q4 net (up 10.7%) to Rs10.23bn and revenue (up 4.8%) to Rs39.37bn QoQ
JSW Steel Q4 profit at Rs4.13bn (up 0.4%), sales (up 31%) to Rs25.79bn
Alstom Projects Q4 profit at Rs362mn (up 75.7%), revenue at Rs4.32bn (up 66.7%) and to pay Rs10 per share as dividend
BEL Q4 profit at Rs3.57bn (up 27%), revenue at Rs17.9bn (up 12.5%)
Castrol India Q1 net profit at Rs415.2mn (up 29%), net sales at Rs4.42bn (up 18%)
Vijaya Bank Q4 profit at Rs636.5mn against loss of Rs345.3mn and revenue at Rs8.88bn (up 32.7%)
Brokers Recommendation:
Idea Cellular – Outperform from Macquarie with target of Rs130.
Long Term investment:
IVRCL Infrastructure
Major News Headlines:
Gateway Distriparks announces 1:4 bonus issue
Silverline Tech to buy BPO Business in North America
Bharti Shipyard gets $64.8mn offshore Vessel Contract
Ashok Leyland to buy Detroit Company for $17mn
JSW Steel acquires 3 coalmines in Africa to secure supplies
TCS unit FNS gets multi million Dollar Order