News Capsule (04 Sep 10)

Valson Industries at its meeting held on September 04, 2010 has declared dividend at Rs 1.5 per share i:e 15% for the year ended March 31, 2010.

Rathi Steel Power at its meeting held on September 03, 2010 has declared dividend at Re 0.30 i:e 3% per share.

Allied Digital Services at its meeting held on September 03, 2010 has declared dividend at 20% i:e Re 1 per shares of Rs 5 each.

Public sector undertaking, Bank of Maharashtra is planning to open 75 new branches in the platinum jubilee year. It intends to cross 1,500 branches by September, 16, 2010.

After declining for two consecutive weeks, the country’s foreign exchange reserves grew by $293 million to $282.84 billion in the week ended August 27 from $282.55 billion in the previous week.

Tata Steel is in discussions with banks to raise loans worth 3.5 billion pounds (over Rs 25,000 crore) for its UK unit.

Anant Raj Industries said on Friday it has acquired unlisted firm Jubilant Software Services for Rs 81 crore.

Indian non-ferrous metals firm Hindalco Industries plans capital expenditure of Rs 10,000 crore ($2.1 billion) in the current financial year to March 2011, its chairman said on Friday.

Foreign institutional investors (FIIs) were net buyers of Rs 283.02 crore (provisional) today, according to data released by BSE.

Insurance major Life Insurance Corporation of India (LIC) today said that will invest a sum of Rs 1,000 crore to develop a mall-cum-office complex at Mohali.

Reliance Industries (RIL), operator of the world’s largest refining complex, bought around 3 million barrels of spot Brazilian crude to arrive in India in the next two months, industry sources said on Friday.

Reliance Industries (RIL), operator of the world’s largest refining complex, bought around 3 million barrels of spot Brazilian crude to arrive in India in the next two months, industry sources said on Friday.

Textiles firm Mandhana Industries expects a net profit of Rs 75 crore in FY11 on revenues of Rs 800 crore, a top official said on Friday.

Jindal Photo at its meeting held on September 03, 2010 has declared dividend at Re 1 per share for the year ended March 31, 2010.

IIFL is bullish on Vardhman Textiles and has recommended buy rating on the stock with a target of Rs 375 in its September 3, 2010 research report.

Deven Choksey, MD, KR Choksey advices one can buy Reliance Industries at Rs 900 and book profits around Rs 1050.

Parag Parikh Financial Advisory Services is bullish on Piramal Healthcare and has recommended buy rating on the stock in its September 3, 2010 research report.

Chambal Fertilisers tends to get into trouble around Rs 75. If it can take Rs 75 out, then previous resistance of Rs 95 is possible, says Technical Analyst, Ashwani Gujral.

Mercator Lines is finding consistent support around Rs 45-46. If it can get past Rs 55, Rs 62-63 is possible, says Technical Analyst, Ashwani Gujral.

Rahul Mohindar of Viratechindia suggests that one can invest in Chambal Fertilisers.

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  • Papa  On September 4, 2010 at 12:39 pm

    A study carried-out by a reliable global research firm has confirmed that global economy has bottomed out and the recovery has commenced.

    Baltic Dry Index is considered as the most reliable leading indicator of global economic activity. This index indirectly measures global supply and demand for the commodities shipped aboard dry bulk carriers, such as building materials, coal, metallic ores, and grains. Because dry bulk primarily consists of materials that function as raw material inputs to the production of intermediate or finished goods, such as concrete, electricity, steel, and food, the index is also seen as an efficient economic indicator of future economic growth and production. This has bottomed out at 1700 levels and is presently at 2750.

    The next global economic growth cycle which has just commenced and may run a 7-8 year cycle, has shifted its Center of Gravity. The run-up of next three decades will be primarily driven by China, India & Brazil. The shifting of investment capital into these regions will surely take place, but after lot of initial resistance. This is because investors are seeing the wrong direction and reading wrong indicators.

    Auto sales in Asian region is surging. Confidence level of Entrepreneurs in Asia especially India & China are surging. Consumption is booming. Prosperity levels are on the rise. Employment rate is rising.

    If so, what are the implications? The stock markets are yet to pick up the signal. But it is just a matter of time. Along with rising equity markets, commodities will move up. Crude prices and coal prices will soon commence their rally. Stock markets will pick up. But the point being conveyed is that one should not keep an eye on Dow and Nasdaq. Yes, they will rally but there isn’t enough headroom. Sensex, Bovespa, Hang Seng etc will lead the rally and hit new highs. The old order will change gradually. It is time world starts tracking monsoons in India, commodity exports from Brazil, Russia, IIP numbers of China etc. So, when Dow touches 11000 Sensex will touch 22000.

    What are the stocks to look for. Here are our six top picks:-
    1. Reliance Industries
    2. Larsen & Toubro
    3. Mercator Lines
    4. SBI
    5. Pantaloon Retail
    6. Mahindra & Maindra

    An investment of Rs one lakh invested in each of the stock will return Rs 12 lakh in 12-14 months time. The midcap stock Mercator lines is added in the portfolio to spruce up the return ratio.

    Here are the reasons why we have picked the stocks. The common reasons running through all these stocks are their able management. All these companies are well-diversified and yet with clear visibility of steady cash flows. All of them are in sectors which pose heavy entry barriers and there are difficulties in starting or replicating similar businesses. All of them reflect India growth story and will be befitted directly or indirectly through this. All the large cap stocks will give 50% return in a year. Mercator Lines will reward investor very handsomely. Our immediate target is Rs 75/ – One can expect a price of Rs 120/- in one year period and Rs 240/- in two years. The reasons are good cash levels, high institutional holding and diversifications which are on the verge of pumping additional cash into the company, exposure to commodity space – i.e coal & oil

    Incidentally all of them are F&O stocks.

    Three cheers to India and its investors!

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