| FAVOURING BULLS | | | | Valued based buying at lower levels | | | FAVOURING BEARS | | | | Nervousness before the F & O expiry and budget | | | | | | | STOCKS TO LOOKOUT FOR | | | | Rana Sugars Ltd (Rs.23.95, Buy) has completed the expansion of power co-generation capacity to 30 MW from 20 MW and will positively impact the bottom lines.
| | | ICSA India Ltd (Rs.1182.05, Buy) bagged turnkey contacts for sub stations totaling to Rs.19.50 crore from APCPDCL. | | |
| MARKET - WHAT TO EXPECT? |
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The weakness was visible in Monday’s trade as the market breadth turned weak. On Tuesday the markets were choppy and sluggish for most part of the day before losing ground in the afternoon trades as selling pressure intensified across the board. The Sensex failed to hold on to initial gains of 63 points as the index closed in the negative zone. The Sensex lost 149.52 points to close at 14,253.38 points on profit-booking followed by funds selling in heavy-weight stocks and profit-taking by retail investors. Increase in interest rates raised concerns coupled with suspicion of the government raising short-term capital gains tax in the Union Budget 2007-08 further contributed to the profit booking. Banking, Capital Good, cement, auto and telecom stocks bore the brunt of selling. For the near term, the outlook remains uncertain as activity picks up ahead of the F & O expiry increasing volatility. Any negative signals across the global markets can further dampen sentiments. We believe that value based buying will continue at lower levels.
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| US MARKET |
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| The US markets ended higher pushing the Dow Jones Industrial Average to a fourth consecutive record on back of better than expected earnings by Wal-Mart Stores Inc and a drop in oil prices. This has set in an expectation that the consumers may boost the profit growth. Wal-Mart''s results has reinforced the FED’s recent forecast that consumer spending will weather the housing slump and offset slowing growth among manufacturers. |
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| MARKET PERFORMANCE |
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| Index | Country | Current Value | Change | Change
(in %) | | Indian Market | | Sensex | India | 14253.38 | (149.52) | (1.04) | | Nifty | India | 4106.95 | (57.60) | (1.38) | | US Markets | | Dow Jones Industrial Average | America | 12786.64 | 19.07 | 0.15 | | Nasdaq Composite | America | 2513.04 | 16.73 | 0.67 | | Nasdaq 100 | America | 1833.71 | 12.22 | 0.67 | | S & P 500 | America | 1459.68 | 4.14 | 0.28 | | European Markets | | CAC 40 | France | 5713.45 | (26.45) | (0.46) | | DAX | Germany | 6982.91 | (4.17) | (0.06) | | FTSE 100 | United Kingdom | 6412.30 | (32.10) | (0.50) | | Asian Markets | | Jakarta Composite | Indonesia | 1806.48 | 7.19 | 0.40 | | Nikkei 225 | Japan | 17939.12 | (0.97) | (0.01) | | Straits Times | Singapore | 3236.93 | (15.56) | (0.48) | | KOSPI | South Korea | 1452.96 | 4.15 | 0.29 | | Taiwan Weighted | Taiwan | 7809.45 | 0.00 | 0.00 | | SET Composite | Thailand | 690.67 | 5.29 | 0.77 | |
| Source: Bloomberg |
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| Market | Advances | Advance % to Total | Declines | Decline % to Total | Unchanged | Unchanged % to Total | Total | | BSE | 684 | 26.0 | 1892 | 71.9 | 54 | 2.1 | 2630 | | NSE | 197 | 18.8 | 824 | 78.8 | 25 | 2.4 | 1046 | |
| Source: BSE & NSE |
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| FII Investment
(In Rs. Crore) | Gross Purchases | Gross Sales | Net Investment | | 20-Feb-07 | 1,757.6 | 1,412.6 | 345.1 | |
| Source: NSE |
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| Indian ADRs Company | ADR Price
(US $)
| Change (In %) | Issue Price (US $) | | DR REDDY (RDY) | 17.26 | 0.6 | 10.00 | | HDFC BANK (HDB) | 72.03 | (0.3) | 13.80 | | ICICI BANK (IBN) | 44.58 | 0.5 | 11.00 | | INFOSYS TECH. (INFY) | 121.00 | 1.1 | 17.00 | | MTNL (MTE) | 6.52 | (2.4) | 7.50 | | PATNI COMPUTERS (PTI) | 22.68 | (0.9) | 20.30 | | REDIFF.COM (REDF) | 19.52 | (0.4) | 12.00 | | SATYAM COMP (SAY) | 47.10 | (1.6) | 9.70 | | SATYAM INFOWAY (SIFY) | 9.18 | 0.0 | 4.50 | | TATA MOTORS (TTM) | 19.70 | (2.2) | 8.70 | | VSNL (VSL) | 19.20 | (0.8) | 17.90 | | WIPRO (WIT) | 18.32 | 0.0 | 41.20 | |
| Source: Nasdaq |
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| NEWS |
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| • | Pyramid Saimira Theatre Ltd (Rs.353.50) plans to partner in a Special Purpose Vehicle (SPV) to be formed with realty companies. The SPV will be for establishing 200 malls with multiplexes with an outlay of about Rs.20,000 crore spread over the next four years. The company’s board has approved investment in the form of capital into these SPVs as per financial closure plan of the respective SPVs.
| | • | Dabur India Ltd’s (Rs.102.60) wholly owned subsidiary, Dabur Foods Ltd will invest Rs.100 crore over a period of three years to upgrade and expand its existing facilities. The company will take up upgradation and expansion work at its Jaipur, Siliguri and Nepal facilities and is targeting to double its revenues to Rs.500 crore by 2010.
| | • | Asian Paints Ltd (Rs.756) will acquire ICI India''s auto refinish business for Rs.52 crore. US-based PPG Industries Inc has signed a definitive agreement with ICI India and as a result of which a portion of its auto refinish business comprising advanced refinish range (2K) will be acquired by Asian PPG Industries Ltd. Asian PPG Industries is a 50:50 joint venture between Asian Paints and PPG Industries Inc.
| | • | Hindustan Lever Ltd (Rs.199.65) plans to change its name to ''Hindustan Unilever Ltd''. The board of the company has approved the change and is subject to shareholders approval in the next AGM slated in May this year. The name change is expected to provide an optimum balance between maintaining its heritage and the synergies of global alignment with the corporate name of Unilever.
| | • | Hindustan Petroleum Corporation Ltd''s (HPCL – Rs.287.80) Bhatinda refinery will see an investment of Rs.3,200 crore from Lakshmi N Mittal. This translates to 49 percent equity participation from Mittal Investment (wholly owned by the Mittal family) in the Bhatinda refinery. | |
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| BOARD MEETINGS |
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| Scrip Name | Meeting Date | Purpose | | Blue Dart Express Ltd | 21-Feb-2007 | Accounts | | SKF India Ltd | 21-Feb-2007 | Accounts | | Gemini Communications Ltd | 21-Feb-2007 | Miscellaneous | | Deccan Chronicle Holdings Ltd | 21-Feb-2007 | Miscellaneous | |
| Source: BSE |
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| DERIVATIVES |
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More action is expected to pick up as the February contracts draw near to a close. The Nifty February contract was trading at a premium of 8.60 points at 4,115.55 over the spot closing of 4,106.95. The overall roll over rate was at around 25 percent.
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| Nifty Futures as on 20-Feb-2007 | | Expiry Date | High Price | Low Price | Prev Close | Close | Number of contracts traded | Turnover
(In Rs. crores) | | 22-Feb-07 | 4179.00 | 4110.00 | 4118.60 | 4118.60 | 204,433 | 8,478 | | 29-Mar-07 | 4175.50 | 4107.10 | 4115.95 | 4115.95 | 91,853 | 3,808 | | 26-Apr-07 | 4181.70 | 4113.00 | 4120.65 | 4120.65 | 619 | 26 | |
| Source: NSE |
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| TRADE STATISTICS FOR 20-Feb-2007 | | Product | No. of contracts | Turnover
(In Crores)* | | Index Futures | 298,047 | 12,377 | | Stock Futures | 593,091 | 21,860 | | Index Options | 99,033 | 4,128 | | Stock Options | 25,238 | 928 | | Interest Futures | 0 | 0 | | F&O Total | 1,015,409 | 39,292 | | *Notional Turnover in case of options | |
| Source: NSE |
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| FII DERIVATIVES STATISTICS FOR 20-Feb-2007 | | Product | Net Investment
(In Crores) | Open Interest
(In Crores) | | Index Futures | (474) | 13,529 | | Index Options | 262 | 8,043 | | Stock Futures | (34) | 18,525 | | Stock Options | 17 | 50 | | Total | (230) | 40,147 | | *Notional Turnover in case of options | |
| Source: NSE |
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RESULTS
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| Sr.
No | Company Name | Scrip
Code | Net Sales (Rs in Crore) | PAT(Rs in Crore) | | Q3FY
O7 | Q3FY
06 | Change
% | Q3FY
O7 | Q3FY
06 | Change
% | | 1 | Hindustan Lever Ltd | 500696 | 3156.10 | 2974.33 | 6.1 | 483.43 | 438.50 | 10.2 | | 2 | Bosch Chassis Systems India Ltd | 505185 | 124.65 | 112.36 | 10.9 | 5.97 | 11.53 | (48.2) | | NA = Not Applicable | | | Source – BSE & CMIE | |
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| Note The above recommendations are valid only for the day and have no correlation to our medium/long term perspective. Disclaimer: This report is prepared exclusively for Reliance Money by SAANS. The information and opinions contained in the document have been compiled from sources believed to be reliable. SAANS does not warrant its accuracy, completeness and correctness. Use of data and information contained in this report is at your own risk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any securities. SAANS and its affiliates and/or their officers, directors and employees may have positions in any companies/shares mentioned in this document (or in any related investment) and may from time to time add to or dispose of any such companies/shares (or investment).
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| Reliance Disclaimer |
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