We are in the midst of a huge amount of turmoil and newsflow for global markets. At one point, we were down 8% in the trading day, then we recovered and closed about 350 points down. After markets closed today, we got news that central banks across the world are acting in concert to cut rates. That was not unexpected after what Ben Bernanke said yesterday and today he has followed that up with a 50 bps cut in the Fed rate. Same has been picked up by the European Central Bank, by Bank of England, banks in Sweden, Switzerland, and in many other parts of the world like China.
So, many central banks are making a concerted effort to try and lift the pall of gloom across global markets, which itself were extremely volatile. Asia sold off. Europe started weak, but recovered after the rate cuts came in. That was after our markets closed for trade. Of course, the Dow Futures was all over the place around the time of news breaking. But this is a significant move and it may well see that relief rally that the market has been looking for after being terribly oversold.
Source: Moneycontrol
Wednesday, 8 October 2008
Buy Satyam, target of Rs 350: Karvy
HCL Technologies an underperformer: Karvy
Karvy Stock Broking has recommended an underperformer rating on HCL Technologies with a target of Rs 160 in its October 8, 2008 research report. "HCL Technologies for Q1FY09 is likely to report a sequential revenue growth of 6.5% (to Rs 23.09 billion), with rupee aiding the growth to the tune of 6%, and we expect the volume growth to improve by a meek 0.5%. We expect its effective tax rate to increase and consequently, the twin effects is likely to pull down the net profit by 28.6%. We recommend the stock as a underperformer, with a price target of Rs 160," says Karvy Stock Broking's research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Source: Moneycontrol
Accumulate Rico Auto, target of Rs 18: Angel
Angel Broking has upgraded its rating on Rico Auto from neutral to accumulate with a target of Rs 18 in its October 3, 2008 research report. "At current levels, Rico is reasonably valued compared to its peers. Rico's appetite for organic growth appears high, but the pace may be slower than expected due to slow down in the Automobile sector and overseas market. Nonetheless, news flow on growth initiatives and fair valuations, makes us positive on the stock. We assign a Target multiple of 2.5x FY2010E EV/EBITDA and 6x FY2010E consolidated Earnings to the stock. We upgrade the stock to Accumulate from Neutral, with a Target Price of Rs 18," says Angel Broking's research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Source: Moneycontrol
Buy Balrampur Chini, target of Rs 126: HDFC Securities
HDFC Securities has maintained its buy rating on Balrampur Chini Mills with a target of Rs 126 in its October 8, 2008 research report. "We have valued the stock on 7x EV / EBIDTA for CY10E (9.6x CY09E), with a target price of Rs 126, an upside of 90% over the CMP. Our bull case target is Rs 188 (upside of 184%) and bear case target price is Rs 77 (upside of 16% from current levels). We have based our valuation on a) Uptrend in sugar cycle resulting in higher realisation for sugar and by products b) Lower interest and deprecation burden c) Strong EPS growth of Rs 4.7 to Rs 9.8 from CY08E to CY10E at a CAGR of 44%. We maintain our Buy rating and target price of Rs 126 on the stock," says HDFC Securities' research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Source: Moneycontrol
A Dalal positive on Ranbaxy
Amit Dalal of Amit Nalin Securities is positive on Ranbaxy Laboratories.
Dalal told CNBC-TV18, "I am positive on Ranbaxy and I said this last week also that assuming that the Daiichi takeover goes through and perhaps the news is in that regard looks positive with the share price movement we are seeing today; companies like Daiichi don’t make such big mistakes that they value something at Rs 22,000 crore for 55% of the stake and the market cap is Rs 9,500 crore. Markets usually give some respect to that and some adjustment in valuation. So once the shareholders get back their money and there will be some comfort to the extent that the deal is going through, I think there will be an upside on that stock to perhaps some extent from here."
Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.
Source: Moneycontrol
HDFC Bank safe to invest: A Dalal
Amit Dalal of Amit Nalin Securities is of the view that in the private sector space HDFC Bank remains the only safe haven for someone to invest in.
Dalal told CNBC-TV18, "In the private banking space HDFC Bank remains the only safe haven for someone to invest in. There are too many concerns with the rest of the private banking space sector right now. Liquidity remains a problem for the PSU banks. I don’t know how RBI plans to look at it but with these outflows that are taking place, it is practically no money left in the system for lending and cost of funds is going up for banks. So it is not a very happy place to be for banks right now."
Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.
Source: Moneycontrol
Balrampur Chini an buying Opportunity: Sukhani
Technical Analyst, Sudarshan Sukhani is of the view that if one is having appetite for risk and spare money then Balrampur Chini Mills would be a buying opportunity.
Sukhani told CNBC-TV18, "Midcap stocks are falling like ninepins, there is no support, there are no levels you just have to wait for them to stop falling. I don’t think there is any reason either I am not saying they are justified at higher prices, I am saying that they are just falling because everything is falling."
He further added, "Balrampur Chini has a better chart this is relative to Bajaj Hindusthan. I would say that if you are having that appetite for risk and if you have spare money then a Balrampur would be a buying opportunity."
Disclosure: It is safe to assume that analyst & his clients may have an investment interest in the stocks/sectors discussed.
Source: Moneycontrol