News with Tags "Stock Recommendations"

MUMBAI: The BSE benchmark Sensex today closed 14 points up as investors covered up their pending positions before monthly expiry in the derivatives segment amid better global trend.

The Sensex gained by 14.10 points to close at 20,005. The gauge touched the day's high of 20,073.46 and a low of 19,964.64 with 12 of the BSE index components ending with gains. The index had lost 113 points in last two sessions.

The broad-based National Stock Exchange index Nifty added 5.85 points to 6,066.75 led by stocks of realty, consumer durables and refinery stocks.

While the market was somewhat under pressure on investors clearing their positions before the monthly expiry in the derivatives segment, a better global trend supported the market.

"Sensex gained marginally by 14 points to close at above 20,000. Markets were range bound and action was stock specific ahead of January F&O expiry. PSU banks witnessed sharp declines after lower than expected quarterly result and lack of continuity in the future direction of RBI interest rate policy," said Shubham Agarwal, Associate VP & Sr Technical Equities Analyst, Motilal Oswal Securities Ltd.

Overseas investors were keen in the regional stocks as rupee strengthened over three-month high at Rs 53.36 on the back of increased dollar inflow and upcoming disinvestment in public sector companies.

The market was supported on firming Asian trend and higher opening in Europe following a powerful performance on Wall Street, where the Dow closed near its record high.

Reliance Industries, a market trend-setter and index heavy advanced 1.87 per cent to Rs 899.05, ended a four-day losing streak.

Private lender ICICI Bank shot up by 1.11 per cent to Rs 1,214.25 ahead of quarterly earning results and Reserve Bank of India cutting key interest rate cut.

NEW DELHI: After outperforming the Sensex in the year 2012, both the BSE Mid-cap and Small-cap indices have corrected in the first month of 2013.

The BSE Mid-cap index has corrected by over 2 per cent compared to a 38.5 per cent gain clocked in the year 2012, while the BSE Small-cap index has plunged over 4 per cent compared to a 33 per cent gain in the year 2012.

The market has attracted a large amount of foreign flows, almost $3.5 billion, in the first month of January, while domestic investors have been sellers to the tune of $2.5-$3 billion.

Foreign investors have poured nearly $24-25 billion in the year 2012, which has typically been poured into some of the frontline heavy index names, say analysts.

According to Rajat Rajgarhia of Motilal Oswal Securities, the valuation gap right now between large caps and midcaps has been expanding and at some point of time, midcaps will have to come and participate in the rally for these markets to hold on at higher levels.

The key drivers for the Indian markets would be the upcoming budget, earning downgrade cycle which looks to have bottomed out, monetary easing by the Reserve bank of India and global liquidity, say analysts.

"For the year 2013, India markets are going to be a stock picker's market as a lot of mid-cap and small-cap stocks may turn into some promising bets or multi-baggers in the next 12 months," said Vivek Mavani, Independent Market Analyst and Portfolio Manager, in an interview with ET Now.

We have compiled views and recommendation on selected stocks or sectors which have the potential to become multi-bagger ideas in the mid and smallcap space:

Rajat Rajgarhia of Motilal Oswal Securities

The business cycles are turning around for many stocks right now and if one can look at the telecom stocks, there is a case that the business cycle is now reversing and investors should play that entire cycle.

Along with telecom, Rajgarhia is also bullish on PSU banks and PSU oil & gas companies where he sees reversal of asset quality issues for them. So valuations for all these sectors are fairly attractive, especially for the upstream ones like ONGC.

In a separate report, BNP Paribas said that the markets are likely to pick momentum as the overall earnings environment appears stable and the brokerage firm believes that the markets may be going through the last leg of earning downgrades in some sectors like auto, infra, PSU banks, while some other sectors like IT, oil & gas and telecom could see earning upgrades.

Manish Sonthalia, VP & Fund Manager, Motilal Oswal Asset Management-PMS

We have added City Union Bank to our portfolio as increase in voting rights, impeccable asset quality, Banking Amendment Bill and diversified business, all these factors are likely to push the stock higher.

The Banking Amendment Bill which increased the voting right cap from 10-26 per cent would be favourable for the stock as mergers and acquisitions in old private sector banks are now a reality.

The bank has impeccable asset quality, a much diversified loan book, retail lending, low ticket sizes and very good dividend yield in terms of loan growth. The bank is growing at 25 per cent and is available at reasonable valuations of around 1.5 book on an FY14 basis.

MUMBAI: Axis Bank, the country's third-biggest private bank, began a share sale on Monday at a 1.8% discount to the market price, which will help it raise Rs 5,546 crore, said a banker familiar with the sale.

The share sale, comprising 3.44 crore shares to institutions and 59 lakh shares to existing shareholders, will be at Rs 1,390 a piece, said the person preferring anonymity.

Axis joins the rush from banks to raise equity funds as the regulator prepares to implement tough capital norms, popularly known as Basel III norms, framed by global central bankers to prevent a repeat of 2008 financial crisis. IndusInd Bank, Development Credit Bank and City Union Bank were the other lenders which raised equity capital.

The share sale by Axis will lead to an equity dilution of 10.75%. Axis' so called Tier-I capital, i.e. equity, is at 10.27%, compared with 7% prescribed by Basel III norms.

MUMBAI: Leading bourse BSE has identified 14 scrips for restricted trading category as a part of its preventive surveillance measures to safeguard investors.

In a circular, the exchange said it would shift the stocks to trade-to-trade segment with effect from February 1.

The stocks that would be shifted to trade-to trade segment or "T" Group included Baroda Extrusion, Bisil Plast, Boston Bio Systems, CJ Gelatine Products, Geefcee Finance, Golden Carpets, Jaihind Synthetics, it said.

Among others are Mangalya Soft-Tech, Nicco Parks And Resorts, Rashel Agrotech, TCI Industries, Vanasthali Textile Industries, Virtual Global Education and Vision Cinemas.

In 'trade-to-trade' segment no speculative trading is allowed and delivery of shares and payment of the consideration amount are mandatory.

The move is part of the preventive surveillance measure taken by the bourse to ensure market safety and safeguard the interest of investors.

Also, the exchange has advised exercise of caution while trading in these stocks.

"Trading members should note that the transfer of scrip's for trading and settlement on a trade-to-trade basis is purely on account of market surveillance measure and it should not be construed as an adverse action against the company," BSE said.

"Further, this is a temporary measure and will be periodically reviewed depending on the market conditions," it added.

Foreign institutional investor's or FII ownership in Indian equities is currently at highest level ever. In 2012 FIIs had pumped in over $ 24 billion into Indian equities. The benchmark BSE 30 Index, Sensex posted 27 per cent return during last year. The trend is still continuing FIIs in January so far have invested over $ 3 billion into Indian equities.

Shareholding data as of quarter ended December 2012 showed FII holding of Indian stocks (193 companies in BSE-200) went up by nearly 100bps to reach its highest level as investors took fresh positions post reform announcements in September '12. Financials were in the spotlight while Consumer Discretionary, Industrials and Healthcare were the other beneficiaries.

"Infosys results and oil sector reforms has revived investor interest, thus IT and Energy sector ownership may improve in this quarter" said Macquarie Research to its client in a research note "L&T continues to be the best stock for investment as a turnaround theme in investment cycle"

According to leading brokerage house Macquarie the highest FII ownership in large caps is in companies like Tech Mahindra, Indusind Bank, HDFC Ltd, M&M Financial Services and M&M and among midcaps Ipca Labs, Federal Bank, Jain Irrigation, Tata Global and Aurobindo Pharma has highest ownership.

The largecaps stocks in which FIIs have reduced their ownership are Ipca Labs, Federal Bank, Jain Irrigation, Tata Global and Aurobindo Pharma and among the midcaps FIIs have reduced their stake in IFCI, United Phosphorous, Indiabulls Real Estate, Strides Arcolab and Hexaware Technologies.

CHENNAI: Singapore-based Amansa Investments has sold two lakh shares, or 1.77%, in Coimbatore-based textile machinery maker Lakshmi Machine Works for about Rs 42.50 crore in open market transactions on Monday.

According to bulk deal data on the stock exchanges, the fund management company founded by Akash Prakash, former Temasek India executive, sold the shares at Rs 2,125 apiece in two separate transactions. As of the September quarter, the company owned 3.44 lakh shares, or a 3.06% stake.

LMW is the third-biggest textile machinery maker in the world and has a 70% domestic market share.

LMW's existing shareholder Sudarshan Securities bought 1.41 lakh shares from Amansa. Before the deal, Sudarshan Securities had a 2.27 lakh shares, or a 2.02% stake, in the company. LIC is the biggest public shareholder in the firm with a 9.71% stake.

In the third quarter, the company said its net profit nearly halved to Rs 20.36 crore from last year, as revenue from the textile machinery unit dropped 21% to Rs 343.13 crore.

MUMBAI: Finance Minister P Chidambaram will inaugurate equity trading platform of MCX-Stock Exchange (MCX-SX) on February 9.

The exchange would commence live trading in equities from February 11, MCX-SX said in a statement.

MCX-SX is providing trading platform for currency derivatives segment at present and would become a full-fledged stock exchange after the launch of other segments like equity, equity derivatives, bonds and interest rate derivatives.

MCX Stock Exchange (MCX-SX) received last month the 'commencement certificate' from market regulator Sebi to go live with its trading operations as a full-fledged bourse.

The 'commencement certificate' is the final go-ahead from the Securities and Exchange Board of India (Sebi) for MCX-SX to go live in new product segments such as equity, wholesale debt (bonds) and interest rate derivatives.

Sebi Chairman U K Sinha, Department of Economic Affairs Secretary Arvind Mayaram would also attend the inauguration function, the statement said.

MCX-SX would compete with other full-fledged nationwide stock exchanges like BSE and National Stock Exchange.

Commenting on the development, MCX-SX Vice Chairman Jignesh Shah said, "Inauguration of MCX-SX equity segment will be a significant milestone not only for MCX-SX but also for the entire nation. Our exchange adds a new dimension to the exchange evolution by embedding growth and inclusion that are so critical for a country like India."

On the same day, Chidambaram would also launch the much-awaited Rajiv Gandhi Equity Savings Scheme (RGESS), which is aimed at attracting first-time stock market investors.

The RGESS, which was announced in the Budget for 2012-13, seeks to provide tax benefits to first-time investors in stock markets.

Besides, the Finance Minister will also meet heads of top 30 non-bank financial companies in Mumbai on February 9.

Chidambaram is likely to discuss issues related to infrastructure financing, rising non-performing assets along with grant of banking licences to new players by the Reserve Bank, sources said.

RBI is likely to issue final guidelines for grant of banking licences to new players by the end of February.

A number of large corporate houses, including Anil Ambani-led Reliance Group, financial conglomerates Religare and Shriram groups, engineering-to-technology major L&T group and Aditya Birla group, are said to be interested in entering the banking business depending on the regulatory framework

NEW DELHI: Foreign investors have increased their stake in the country's largest mortgage lender HDFC to over 73 per cent during three months ended December 2012 -- the highest level in nearly seven years.

The shareholding of overseas players, or Foreign Institutional Investors (FIIs), in HDFC has been steadily rising since March 2012.

Cumulative FII holdings in the company rose to 73.17 per cent in the October-December 2012 quarter whereas it stood at 68.72 per cent in three months ended September last year, according to stock exchanges data.

Moreover, the current FII holding of 73.17 per cent in HDFC is the highest in nearly seven years. The level stood at 74.07 per cent during the quarter ended March 31, 2006.

The rise of overseas shareholding in the mortgage lender, one of the highest among the country's 30 listed blue chip companies, coincides with overall bullishness shown by foreign entities in the Indian stock market.

In May last year, HDFC's board had approved raising FII limit in the company to 100 per cent.

Market experts say the impressive returns earned by overseas investors, Carlyle and Citigroup, in the recent past could be the main reason for other foreign entities purchasing the company's shares.

Besides, the housing finance firm has registered a 27.55 per cent rise in its consolidated net profit at Rs 1,705.83 crore in the quarter ended December 31, 2012 on sound growth in individual loan book.

During the October-December 2012 quarter, HDFC shares surged by over seven per cent, as against 3.5 per cent gain in BSE's benchmark Sensex.

In the same period, FIIs have invested a staggering sum of more than Rs 45,000 crore in the Indian equities on the back of a slew of reform initiatives by the government.

Besides, the overall holding of institutional investors also rose to the highest level in the past four quarters to 86.95 per cent during October-December 2012 period from 85.53 per cent at the end of March 31, 2012, mostly on account of additional share purchases by FIIs.

The domestic institutional holdings stood at 13.77 per cent as on December 31 2012, down from 20.12 per cent in January-March quarter of 2012.

NEW DELHI: Signalling their positive outlook on Indian stocks, foreign funds increased their exposure to 29 Sensex firms, including HDFC, Mahindra & Mahindra and Maruti Suzuki India, in the third quarter ended December, 2012.

Foreign Institutional Investors (FII), a major participant in Indian stock markets, have increased their shareholding in 29 companies of the 30-constituent Sensex in the October- December quarter.

Foreign funds, however, reduced their stake in Hero MotoCorp during December quarter of the current fiscal in comparison to the preceding (July-September) quarter.

Market analysts said the recent reforms initiatives undertaken by the government to boost economic growth and investor sentiment have infused much-need confidence in FIIs.

"Reforms process initiated by the government last year fuelled a stupendous rally in the stock market. FIIs are investing in India and are of the opinion that the economy is going to reverse for good," Ashika Stock Brokers Head (Research) Paras Bothra said.

During the quarter, the largest increase in FII holding was recorded by housing loan major HDFC. FII stake in HDFC rose from 68.72 per cent in July-September quarter to 73.17 per cent in the three-month quarter ended December 31, 2012.

Overseas holding in Mahindra & Mahindra increased by 2.86 per cent from 30 per cent at the end of September quarter to 32.86 per cent in December quarter.

Auto major Maruti Suzuki saw foreign fund holdings increase to 23.13 per cent in December quarter from 20.45 per cent in the second quarter ended September.

FIIs also hiked their stake in NTPC, Larsen & Toubro, Wipro among others.

In contrast, the foreign holding in Hero MotoCorp reduced to 31.99 per cent from 32.34 per cent in September quarter.

During the quarter, FIIs invested over Rs 45,000 crore in equities pushing the BSE benchmark Sensex upwards by a little over 600 points or 3.2 per cent.

MUMBAI Real estate developers rallied on Friday as investors rushed in to buy beaten-down stocks with an expectation of an interest rate cut by the Reserve Bank of India in its third quarter review on Tuesday and several brokerages recommending their clients to buy companies which are cutting down debt.

In two trading sessions on Wednesday and Thursday investors hammered realty stocks after promoters of HDIL and one of its investors Citigroup sold shares in the market. BSE Realty index, comprising 10 stocks, rose 4.42% on Friday, against a percentage gain in the benchmark Sensex. HDIL surged 10.52% to close at Rs 82.50 after foreign brokerage Macquarie recommended 'Outperform' rating with a target price of Rs 168. The stock had plunged more than 38% in the previous three trading sessions.

Unitech and Sobha Developers rose over 6% while Prestige Estate gained 5% on Friday. Analysts said the investors bought realty shares after a sudden fall in three sessions. "Realty stocks have just bounced back from Thursday's steep fall following various rumours floating in the market," said Sharan Lillaney, real estate analyst at Angel Broking. "The sector is also upbeat over the hopes of an RBI rate cut, however, this has already been factored in the stock prices," he added.

In December, RBI had indicated that it could look at a rate cut in its third quarter yearly review in January 29, 2013 as rate of inflation slowed. BSE Realty is down 1% between January 1 and now against a 2.56% gain in Sensex during the same period. Though foreign brokerages are bullish on the sector, they have recommended investors to play a "risk straddle" strategy — buy high-quality names or play potential turnaround in laggards where debt reduction is coming through and launch momentum is high.

Goldman Sachs has recommended their clients to buy DLF, Sobha Phoenix Mills and HDIL as it believes a cut in interest rate will benefit developers with larger assets and commercial space leases. Analysts say Sebi rules to compulsory reduce promoter ownership to 75% by June 13, 2013 will help companies to raise capital and deleverage balance sheets.