Tuesday, 22 September 2009

Investors gain Rs 25 lakh-cr in just over five months

Investor wealth has increased by over Rs 25 lakh crore in just over five months from the beginning of the current financial year, on improving sentiments in the domestic and global markets.

According to an analysis of the valuations for the period (April 1-September 18), the combined market capitalisation of all the firms listed on the Bombay Stock Exchange increased by Rs 25,02,749 crore or nearly 80 per cent.

Analysts believe the rise in investor wealth has been due to the upbeat market sentiments on indications of economic recovery globally.

"The markets have given a healthy return on the back of positive mood among domestic and international investors," SMC Global's Vice President Rajesh Jain said.

The total market valuation increased to Rs 56,35,835.75 crore on September 18 from Rs 31,33,086.7 crore on April 1.

While, the 30-share benchmark index Sensex has given a healthy return of nearly 70 per cent to hover around 16,700 level in September against 9,900 level in April.

The Sensex companies, which account for about 45 per cent of the total market capitalisation of all the companies, saw its combined market valuation rise by over Rs 10,00,000 crore in the reviewed period.

The combined market capitalisation of the 30 blue-chip stocks rose to Rs 25,31,831.55 crore on September 18 from Rs 15,31,252.34 crore on April 1.

However, the total turnover of the Sensex companies declined to Rs 1,597.42 crore on September 18 from 1,705.52 crore on April 1.

Jain further added that the decline in the volumes is due to less participation of retail investors in the markets, which shows the run is mainly on account of institutional money, both domestic and international.

Meanwhile, foreign investment into the Indian stock markets are likely to cross USD 10 billion-mark by the end of this month as a hefty USD 9.8 billion (Rs 47,674 crore) have already been poured into the bourses by overseas entities so far this year.

Source: EconomicTimes

Equities advance to 16-month high; 5100 on Nifty eyed

Equity benchmarks resumed their rally Tuesday after an extended week, building onto gains for the fifth straight session. Expectations of strong quarterly earnings and increased short covering ahead of the F&O expiry for September propelled key indices to 16-month highs.

“The market opened on a strong note defying global market movements. Indices held gains throughout the day even as we saw some amount of profit booking as the Nifty neared 5050 – a crucial resistance. However, we expect the Nifty to scale to 5100 levels in the near term. On a sector specific note, automobile, technology and power stocks will outperform,” said Jyoti Nagrani, chartered market technician, Finquest Securities.

National Stock Exchange’s Nifty settled well above the 5000 mark for the first time in 16 months. The index ended at provisional 5020.20, up 0.89 per cent or 44.15 points from its previous close. The index touched a high of 5036.30 after opening at 4977.10.

Bombay Stock Exchange’s Sensex moved closed to the 17000 mark as well. The 30-share index advanced 0.87 per cent or 145.13 points to 16,886.43. The index rose to a high of 16,943.49 from a low of 16,763.78.

Midcaps and smallcaps picked up pace as well. The BSE Midcap was up 0.74 per cent and BSE Smallcap Index climbed 1.05 per cent.

Sectorwise, the BSE IT Index surged 1.91 per cent, followed by BSE FMCG Index up 1.63 per cent and BSE Bankex rising 1.03 per cent. Meanwhile, BSE Oil&Gas Index ended marginally lower.

Biggest Nifty gainers were Ranbaxy Laboratories (5.56%), HDFC (4.78%), BPCL (3%), ITC (2.89%) and TCS (2.84%).

Losers were Bharti Airtel (-3.44%), Hindalco Industries (-1.16%), Jindal Steel (-1.10%). ONGC (-0.85%) and Sterlite Industries (-0.66%).

Shares of Bharti Airtel fell more then 3 per cent following reports that the company may have to sweeten its offer for South African telecom company MTN. According to reports, Bharti has offered MTN a 27 percent of its stake for the same money instead of the 25 percent proposed earlier.

Market breadth remained positive with 1632 advances against 1045 declines on the BSE. On NSE, there were 698 advancing shares outnumbering 592 declining ones.

Meanwhile, Reliance Communications' infrastructure subsidiary, Reliance Infratel, is planning an initial public offer and the company will shortly file its Draft Red Herring Prospectus with Sebi, chairman Anil Ambani told shareholders at the company's annual general

The company is mulling a 10 per cent stake sale of equity of Reliance Infratel through an IPO. 85 per cent of the stake ofthe company will remain with Reliance Communications, Ambani added.

Source: EconomicTimes

Ranbaxy Lab can go upto Rs 420-425: Gujral

Ranbaxy Laboratories can go upto Rs 420-425, says Technical Analyst, Ashwani Gujral.

Gujral told CNBC-TV18, "Ranbaxy seems to have bottomed out and that could be headed towards Rs 420-425. Dr Reddys Laboratories has sort of consolidated and because of some rumours that started a fresh move, so here we could get to level of about Rs 920-925. So, pharma overall is looking strong. The point is that as long as this rotational game continues the market will remain strong but it’s getting overbought and nobody is negative, so people need to get into habit of taking profits now."

Source: Moneycontrol

Above Rs 125, Natco Pharma can touch Rs 160: Gujral

Above Rs 124-125, Natco Pharma could head up to levels of Rs 160, says Technical Analyst, Ashwani Gujral.

Gujral told CNBC-TV18, "Natco just paused for a bit and now if it can maintain Rs 124-125, it could head up to levels of Rs 160, so it’s in a clear strong uptrend."

Source: Moneycontrol

HDFC can touch Rs 2750: Gujral

Housing Development Finance Corporation, HDFC can touch Rs 2750, says Technical Analyst, Ashwani Gujral.

Gujral told CNBC-TV18, "HDFC is the one that looks good because that is a one that had a breakout above Rs 2,500, so levels of Rs 2,750 is possible."

He further added, "The entire housing finance space is unwell even stock like LIC Housing Finance could be headed about Rs 833."

Source: Moneycontrol

Above Rs 560, TCS can head up to Rs 650: Gujral

Gujral told CNBC-TV18, "ITC has been between Rs 222 and Rs 245-250 kind of range and it will make a significant move only above Rs 250."

He further added, "Technology stocks are showing some kind of strength, but they are also reaching their targets. So TCS probably if it can stay above Rs 560, it could get up to Rs 650 but Infosys getting up to Rs 2,400, TCS moving towards Rs 600-650; they are getting to the top end of their ranges, getting very close to targets, so its time to probably take some money off over there as well."

Source: Moneycontrol

Get ready for a fall if mkts go up 10-15% more, says Kotak

Sandeep Bhatia, Executive Director and Head of Sales, Kotak Institutional Equities is cautious on the markets. He feels this renewed strength and strong level of interest is due to the result season in the offing, which is also helping the markets move southwards. “October earnings should raise street earnings estimates for the entire street.”

He advices to get ready for a fall if the markets go up another 10-15%.

Source: Moneycontrol

Positive on India for long term but won't buy now: ABN AMRO

Emil Wolter, Head of Regional Strategy, Asian Equities, ABN AMRO Bank would prefer to book profits in India. “Expectations here have jumped ahead of valuations. We have high expectations on materials, consumer durable and IT space.” Though he said he was positive on India for the long-term but won’t buy at current levels.

Source: Moneycontrol

Inox Leisure (Rs 57.2): Buy

We recommend a buy in the stock of Inox Leisure from a short-term perspective. It is evident from the charts of the stock that following a medium-term correction between early June and mid July from Rs 71 to Rs 37, it found key support around Rs 40. Later, it resumed its intermediate-term uptrend that has been in place from March low of Rs 18.9. Since July, it has been on a medium-term uptrend too. Recently, the stock surpassed its 21-day moving average and is trading well above 21 and 50-day moving averages. On September 18, it breached its near-term resistance at Rs 55 by gaining 5 per cent with good volume. The daily relative strength index (RSI) has entered in to the bullish zone and weekly RSI is on the brink of entering this zone. The daily moving average convergence and divergence indicator has signalled a buy and is hovering in the positive region. We are bullish on the stock from a short-term horizon. We anticipate it to rally until it hits our price target of Rs 63. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 54.

Source: thehindubusinessline

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.